I am sure many of you have or will be getting questions from your clients on how the current financial crisis will affect the real estate market in the short and long run. Since the details of the program are still in debate, the best that can be said is that a very sweeping program certainly will be passed and its effect will help stabilize the financial markets, allowing an increase in availability of mortgage credit and foreclosure relief to many, all very good things. This is a big ship to turn so there will be some immediate market euphoria (some of which has already happened) but the actual benefits will take some time to trickle down. In the short run, it will be interesting to see if lenders pull back on short sale negotiations since they may view those loans as the ones they will sell to government, thus avoiding a write off.
I don’t think our world will be affected much by all of this except for maybe some short term hesitation to jump from some buyers. So far, from John Adams perspective, we have not seen any mortgage access issues since 85% of our market is eligible for FHA for FHA/MSHDA and there is not a shortage of those loans. It is the less than 20% down conventional mortgages that have seen the biggest squeeze. If you come across some buyer hesitancy, remember the Financial Package is designed to stabilize and improve the housing market, and it will eventually bring with it increased interest rates as a consequence of the enormous size of the additional government debt. Both of those results will reduce the bargaining power a buyer has today, so the importance to buy now is even stronger. For Sellers, no change in strategy, if they need to sell now, cut the price hard to stand out in the crowd, or pull the home off the market and wait.
1 comment:
*
*
*
Recently an insurance company nearly wind up....
*
*
A bank is nearly bankrupt......filing chapter 11 protection.
*
*
How it affect you? Did you buy insurance? Did you buy mini note or bonds?
*
*
*
Who fault?
*
*
They bailout trouble finance company, but they will not bail out your credit card bills……And the bill out of company is still not enough yet…….Should they have use the bail out $$ to pump into all different industries……You got no choice, and no point pointing finger but you can prevent similar things from happen again……
*
*
The top management of the Public listed company ( belong to "public" ) salary should be tied a portion of it to the shares price ( IPO or ave 5 years ).... so when the shares price drop, it don't just penalise the investors, but those who don't take care of the company.....If this rule is pass on, without any need of further regulation, all industries ( as long as it is public listed ) will be self regulated......because the top management will be concern about their own pay check…… And they are still spend big money on hotel stay and luxury function……..
*
Meanwhile if company was being acquired, there will be a great movement in terms of staff……eventually staff suffer also.
*
*
*
So Bail out already happen, So the next question is, what regulation are they going to implement, so as to prevent similar things to happen………
*
*
Are you a partisan?
*
Whenever anywhere, anytime, there is election campaign.....We can use this to question your candidate there….. if you agree on my point, please share with many people as possible.... Finance and Media are the two only industries can shaken politics ( Maybe Hackers can ), please help to highlight also...
*
Blog
http://remindmyselfinstock.blogspot.com/
*
Facebook, come and join as a friend and share with your friends…..
Remind.myself@yahoo.com
Post a Comment