The Professional Investors Secret: The Best Deals Aren't Advertised

When it comes to investing in real estate, everyone knows that the internet has made it easier than ever to locate foreclosures, pre-foreclosures, short sales, and bank owned REO properties. Chances are your local Multiple Listing Service has hundreds of potential short sales and foreclosures listed at prices that are well below their original selling price prior to the housing market melt-down.

Image courtesy FreeDigitalPhotos.net

But for professional investors, who don't want to bid against the public for those properties listed on the HUD website or the local MLS, the real secret to success is in finding those deals that are not listed or advertised, and there is usually not even a 'for sale' sign in the front yard. In fact, as professional real estate investor Tony Youngs will tell you, sometimes the owner may not even know that their property is for sale, when they are contacted initially.

These properties are commonly known as 'shadow inventory'. This term has been used since the housing crash, in reference to bank owned foreclosures that were not listed for sale. But for the true professional investors, shadow inventory can include any property that may be available for purchase for a variety of reasons.

Often finding the best deals with the most creative terms will mean seeking out those property owners who may need to sell for some reason, but may not even realize that they want to sell until they hear from a pro who can explain to them what is happening with their property, and educate the owner about options for solving their problem.

For example, Tony Youngs is a full time real estate investor who's been buying and selling real estate for more than 30 years. He travels to real estate markets all over the U.S. training 'newbie' real estate investors in his unusual techniques for finding and buying shadow inventory.

During that time he's seen literally thousands of deals that would not have taken place had he not been willing to seek out problem properties, then contact the owners to discuss their options.

Often the properties are vacant, but are not advertised for sale. There is no sign in the front yard and no indication that the home is for sale at all. But Tony is an expert at finding property owners, and contacting them about these properties. More often than not, the seller does want to sell, but has no real idea what to do with the property. According to Tony, sellers often do not even realize that they can sell the home in it's present condition. Many sellers do not attempt to market a property because they mistakenly believe that they need to complete expensive repairs before they can sell, but they do not have the money. So they do nothing instead.

Once Tony has contacted them, he usually has to educate the seller about the fact that that they can sell their property without having to spend money on repairs. Tony tells a great story about driving around a neighborhood one day, when he ran across a guy loading a U-Haul truck at a house. Tony stopped and asked him if the house was for sale. The guy responded that he was just a tenant and was moving out. He did not know if the owner wanted to sell or not. But he did have the phone number for the owner, and gave it to Tony.

Tony called the owner and asked her if she wanted to sell the house. Turns out the owner had gotten the house in a divorce, and had never even been to see it. She had no idea that the tenant was moving out. When Tony informed her that the house would need extensive repairs to get it into rent-ready condition, the owner freaked out because she did not have money for the necessary repairs, and did not live in the immediate area. Tony informed her that he'd be happy to purchase the house in it's existing condition, and they began to negotiate.

When it was all over, the seller was happy to unload a house that she could not manage, and did not have money to fix. Tony partnered on the deal with a coaching client who used this property as his first real estate investment. Through a creative agreement with the seller, Tony and his coaching client bought the property, renovated it, and resold it to a owner occupant. The seller was happy to receive ten thousand dollars at closing, and after spending about thirty thousand on a rehab that took about 3 months, the coaching client realized a profit of about thirty thousand dollars on his very first 'fix and flip' property. And all this happened AFTER the housing market crash.

When it comes to the best real estate investments, doing the little things like stopping to talk to the guy loading a U-Haul truck can yield a big payday for smart real estate investors. And the seller did not even know the house was for sale until she was contacted by the investor. Now THAT's what I call 'shadow inventory'. The secret of the pro's is that the best deals are the ones that no one knows about.
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Donna Robinson is a 16 year veteran of the real estate industry. She has been a coach and consultant to real estate investors for 10 years. Her website is www.RealtyBizConsulting.com

Commercial Real Estate in Today's Economy

With today's upside down real estate market where many homeowners  are being forced to foreclose on their homes, questions are being asked if commercial real estate has been affected the same way and if businesses will be forced to close their doors due to poor market conditions.

Image courtesy of FreeDigitalPhotos.net

Luckily for those owning mass amounts of real estate the economy is slowly but surely making a comeback in the housing market and some lenders are even giving many foreclosed home owners a second chance at ownership. But the truth of the matter is that commercial real estate was affected back in 2007, like many, when the economy took a sudden hit. This has left many to ask, when will things come back up!

Commercial real estate surely isn't back at its prime, like it once was in early 2000, but fortunately the market is moving forward in a positive direction and leaving many opportunities available for buyers. It's a great time to be a buyer since mortgage rates are at an all-time low and the large number of foreclosures is creating new opportunities to purchase high end commercial real estate in cities like Phoenix at an exceptionally affordable price.

For those new to the market, foreclosed properties once belonged to proud owners who unfortunately couldn't make payments in a timely manner, leaving buyers the opportunity to purchase it at a decreased price. With foreclosed properties it is important to see the home is inspected prior to signing any paperwork, as this helps one avoid any damages that could occur fees in the future.

Even with the prices of property at an all-time low property values are constantly fluctuating, so how do you know when is the best time to buy?  There are a few key factors to be aware of, including the economic slowdown, the increase in interest rates and holidays.

If you're a buyer or investor then the economic slowdown is when you want to act fast and purchase prime commercial real estate in Phoenix. Increased interest rates is another indicator for when to purchase since this will make the acquisition of new property more expensive, leading to fewer customers which eventually triggers a loss in the value of real estate.  Finally, holidays have always been a great time to buy, especially around December.

Even though the Phoenix commercial real estate isn't what it once was, now is an ideal time to be a buyer or an investor. By keeping these few tips in mind when looking at new property for your business, you are sure to find a great deal.

 

If you're interested in purchasing prime commercial real estate in Phoenix, Menlo Group Real Estate can help you and your business. For more information about Menlo Group Real Estate, please visit our website at http://www.menlocre.com.

Using the Right Photos on Your Real Estate Website

What makes home buyers stay on your website? Is it all that wonderful text people are reading? Although we'd like to think it's the great content you or your copywriter posted on each page, a lot of times what attracts different people are the images you've selected and placed throughout the website.

Image by FreeDigitalPhotos.net

Making a good first impression to viewers is important and a quick glance at poor quality photos or images that don't belong on a page can get people to click off your site before they've really even given it a shot.

So with that in mind the next question often becomes, 'what pictures should I include that will keep people searching for real estate coming back to my website?' Well, depending on the flow of your real estate website, the answer can definitely vary.

For all your neighborhood or community pages, I like to recommend images of the property types buyers will most likely find in that particular area. More often than not, I tend to see real estate agents posting lifestyle shots on these pages, or pictures of local restaurants and businesses. While these sorts of pictures are great and certainly give buyers a nice visual of the surrounding neighborhood, it's important to keep in mind why they're on your website in the first place-which is to hopefully find a new home or condo.

So give them what they want to see. If a neighborhood is known for vintage brownstones or classic brick single-family homes, include photos of brownstones or brick single-family homes. The picture of Joe Cool and his buddies living it up at a local upscale restaurant really isn't needed.

If don't already have a great collection of photos of real estate in your local market, plenty of royalty-free stock photo websites are out there with thousands of pictures for you to use at a very low cost. iStockphoto.com and Shuttershock.com are two of the more popular sites, but dozens of others are out there as well. Photographs can make or break your real estate website. So make sure to use quality pictures that make sense to the viewers. It may seem like a small detail, but it can really pay off in terms of referral and repeat visits from home buyers in your market.

Joe Heath is a graduate of Indiana University and also holds a Graduate Certificate in Real Estate Development from Drexel University. After working in the market research sector and authoring published Market Snapshots for Hanley Wood Market Intelligence, Joe now works as a Web Marketing Specialist and co-owns Real Estate Web Creation with his partner, Ted Guarnero, a 25+ year real estate veteran.

Is Uncle Sam Helping The Housing Market, Or Merely Finishing It Off?

According to the May 2012 Issue of FHA Watch, Uncle Sam is now a totally dominant force in home mortgage financing, along with other major sectors of the U.S. economy.

'Spotlight on the Government's Growing Monopoly of Consumer Lending and Private Debt: Outstanding consumer debt totals over $12 trillion, constituting 44 percent of all outstanding private debt (both consumer and business). Home mortgages ($9.8 trillion) and student loans ($0.9 trillion) comprise the two largest asset classes within the consumer debt sector.

In 2011, the Government Mortgage Complex accounted for 88 percent of all first-mortgage originations in the United States, with the government also controlling an estimated 90 percent of the student loan market. The government's growing dominance in the home mortgage and student loan categories is cause for concern, posing a threat to private investors, borrowers, and taxpayers.'

Since the 2008 melt-down, government backed loans have become the dominant player in the housing market. This fact creates a much higher level of risk for the U.S. housing market going forward, as it becomes more and more dependent on government borrowing and public debt.

The Government Now Has A Monopoly On The Mortgage Market

This is the mother of all moral hazard. It's doing much more of the same thing that got us into the housing bubble originally. Only this time, we're using government borrowing to fund the mortgage market, instead of private sector investment.

When the government pumps large amounts of money into lending for home mortgages, it's risking borrowed money, on higher-risk, 'low down payment' loans. This in-turn tends to drive home prices higher by making money easier to borrow than it might be in the private sector. If prices begin to rise the tendency is to make more loans at higher and higher prices. After a few years you have a true bubble that is totally dependent on the ability of the government to continue funding it. The government either borrows more and more money, or it may choose to print more dollars. In either case, it's a model that destined to fail at some point.

Government funded mortgage lending costs borrowers a lot of extra money. In fact, given the low down payments involved, plus the fees added to the cost of these loans, borrowers are much more likely to end up 'under water' or in default on these loans.

There are lots of important points that are made in the FHA Watch about the insolvency of FHA, with their government accounting schemes that would be illegal in the private sector. It's FHA Insurance that backs the vast majority of these mortgages.

FHA pays off on claims filed by lenders who have a mortgage loan that goes into foreclosure. When the lender files a claim for FHA insurance, it's the taxpayers who actually pay the claim. Since 2008, FHA's total delinquency rate has grown to almost 16%. That's compared to the historical pre-boom norm of about 3.5%.

This amounts to billions in potential future losses and new public sector risk, being created on a monthly basis. In short, we are propping up the housing market with money the government has mostly borrowed. This also diverts billions in funds that would otherwise be available for lending in the private sector.

In effect the government's attempts to prop-up the housing market could be our un-doing, because of the risk that's being taken on ' financing high risk loans with borrowed funds.

The government expansion into mortgage lending has been dramatic. On January 1, 2008, government lending stood at 40% of all mortgages. Today it's 88% of all new mortgages. In just 5 years, private sector investment has been all but replaced with a government controlled mortgage market for the vast majority of potential home buyers.

A government big enough to fund the entire mortgage market is a government that will either totally control the housing sector or totally destroy it, or both.
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Donna S. Robinson is a 16 year veteran of the real estate industry. She offers real estate investment consulting, analysis and training for real estate investors. Her website is www.RealtyBizConsulting.com

Rio is the 'Real' Deal as Real Declines

Property in Rio de Janeiro, Brazil, is beginning to look very attractive for foreign investors as prices continue their swift decline, fuelled by a sharp devaluation of the Brazilian Real.

Rio de Janeiro has become one of the most livable cities in the world. Image by kaysha - flickr.com

Rio's real estate sector has experienced a roller coaster ride in recent years, with property prices soaring sky high at one stage due to a growing demand from Brazil's middle class amid the country's impressively strong economic performance.

Thanks to increased confidence and the strength of the Real, banks in Brazil issued record numbers of mortgages, causing Rio to rapidly transform into one of the world's most desirable cities to live in, and property prices to increase by almost 140% since 2008.

However, the last 12 months have seen a stark turnaround in Brazil's economic fortunes. Chinese demand for Brazilian commodities has fallen, while high inflation and a surprising drop in Brazilian productivity has led to a sudden decline in Brazil's economic output. As a result, the once high and mighty Real is now slipping from its pedestal.

The Real value? Brazil's currency has dropped sharply against the dollar in recent months. Image by FernandoOliveira - flickr.com

The Brazilian Real was regarded as one of the most over-valued currencies in the world until recently, but has fallen sharply in the last few months, and is now hovering at just two Reals to the US dollar.

For foreign investors, all of this is great news. The decline of the Real equates to a spending power increase of 22% compared with one year ago. Meanwhile, Rio, with its fantastic year-round climate and the 2014 FIFA World Cup looming ahead on the horizon, has lost none of its desirability.

Even more encouraging for foreign investors, local real estate experts are predicting that property prices in the city will also decline over the next 12 months, with some claiming that the average cost of a home could drop by as much as 25% as the level of local demand begins to wane.

Samantha Mortner Flores, of the InTown Group property consultancy firm, summed up the city's changing fortunes perfectly:

'The market is entering a new phase, and for foreign investors, it is looking more attractive than it has done for years,' explained Flores.

Source: Property Wire

Despite Lower Home Values, 9 out of 10 Homeowners Stick It Out

Any smart student of finance will tell you that it's not a good idea to owe more on something than what it's worth. That is why so many homeowners (especially those who had little to no buy-in) have simply walked away from their devalued homes, rather than remain underwater.

Most homeowners prefer to wait things out. Image courtesy of www.FreeDigitalPhotos.net

Despite the problems that the housing market has experienced in recent years, it's encouraging to note that 90% of homeowners who have a negative equity interest in their homes, continue to pay their mortgages.

Zillow® recently released their Zillow® Negative Equity Report for the first quarter of 2012. In this report, they reveal that nearly a third (31.4%) of U.S. homeowners with mortgages (15.7 million) owed more on their homes than what they were worth.

Nine out of 10 homeowners who are in a negative equity position still continue to make their payments on time. Only 10.1 percent are over 90 days delinquent.

Stan Humphries, Zillow Chief Economist said, 'While it was disappointing to see negative equity numbers remain so high, it is important to note that negative equity remains only a paper loss for the vast majority of underwater homeowners. As home values slowly increase and these homeowners continue to pay down their principal, they will surface again.'

'That said,' continued Humphries, 'negative equity remains an issue for the housing market as a whole, and poses a risk to any recovery. Not only does negative equity tie many to their homes, by making homeowners unable to move when they want to, but if economic growth slows and unemployment rises, more homeowners will be unable to make timely mortgage payments, increasing delinquency rates and eventually foreclosures.'

The 'water's depth' that many homeowners find themselves in varies. Almost 40% of underwater homeowners (12.4% of mortgaged homeowners) owe from 1 to 20 percent more than their homes' value. Another 21% (6.6%) owe between 21 and 40 percent more and only about 4.7% (2.4 million) of mortgage homeowners owe double their homes' value.

Many of these homeowners are in troubled areas such the Las Vegas metro area where an astonishing 26.8% (approximately 90,000) homeowners owe twice what their homes are worth.

To get a strong visual of how these facts play out across the country, Zillow is releasing a data visualization this quarter which shows negative equity levels, right down to the zip code. Check it out here.

It could be easy to get discouraged looking at these numbers in isolation, however it's not wise to look at any real estate fact singly, but rather look at the market as a whole. Certainly there are areas which are less prosperous than others, however if my years in the industry has taught me nothing else, it's that the industry is cyclical ' what goes down will go up again ' the only question is when.

How about your market? Are you seeing growth, or do things seem to be trudging along slowly? Please share your thoughts.

Making Money on Real Estate, No Matter What!

Real estate investing is a tough business at the best of times. Which means that nowadays, with markets in the shape they're in, making a handsome profit is a very tricky stunt to pull off indeed. But with a little planning, anything's possible'

Making your real estate investments pay © www.FreeDigitalPhotos.net

For investors, knowing how to behave when the market is up or down is critical to your success. Obviously when a market is on the rise then sellers have the upper hand. This is the time when you may want to consider taking some of your rental properties or long term equity investments and cashing out on them.

During major real estate booms, it actually becomes fairly common for buyers to make offers HIGHER than the asking price and end up in bidding wars over an investment property in a prime location. Those are the golden days of being a real estate investor.

Today of course, things are not so golden ' prices are low, and so far, they are staying low, making it very difficult for investors to realize a profit on any of the homes they buy.

So how to make a profit and survive during a down market or a real estate bubble burst like the one we are experiencing now? Here are a few pointers to make sure you're on the right track:

Be Realistic

First of all, don't set unrealistic goals or have exorbitant expectations from every deal. If you think you are going to double your initial investment on every real estate transaction you make during a recession then you are going to end up owning either overpriced properties you can't sell or no properties at all because the profit margin seems too low for you.

Make up a basic spreadsheet for yourself that breaks down each property like this:

• Purchase Price
• Cost to Repair
• Cost to Market Using Realtors
• 3 Months Carrying Costs
• Closing Costs
• Current Fair Market Value

Plug in the numbers based on your educated estimates for each of the fields and see how the deal looks.

Let's use an example:

• Purchase Price ' $100,000
• Cost to Repair ' $4,000
• Cost to Market Using Realtors ' $6,000.00
• 3 Months Carrying Costs ' $4,500
• Closing Costs- $3,500
• Current Fair Market Value ' $140,000

So in this example our total expenses to purchase, fix and maintain the property for three months and then sell it would be $118,000. If you are using private money to fund your investment, make sure your estimate for carrying costs includes the interest you are paying on that money. On a property where you are taking the added risk of repairing, holding and reselling it, your realistic goal should be to make a 20% return on your initial investment. Here the initial investment was $100,000 so you would be shooting for a $20,000 net profit when the deal is complete.

Prepare for the Worst

If you sell this property for its fair market value of $140,000, then your total profit on the deal would be $22,000. This is a property you definitely would want to purchase. But here is the secret to making sure you profit on the deal even if your estimates are way off:

Double all of your expenses on the property

In the above case, that would mean our expenses are now $36,000 and our total investment would be $136,000.00. If this number is still lower than what you can sell the property for then you know it's a solid deal. Because even if ALL of your estimates are off and everything costs twice as much as you anticipated, you will still make a profit on the sale.

This is budgeting for the absolute worst case scenario you can conceive. If your investment still is in the black then you should proceed because there are built in safety factors in this analysis. For example, you know you are never going to pay a 12% real estate commission to market the property ($6,000 doubled).

Get your Priorities Right

Essentially, knowing whether you have a good real estate investment also depends on what your priorities are as an investor. If you are looking for quick cash then flipping properties either to the public or wholesale to another investor is your best choice.

However, if you are looking for long term growth then the rental value of the property may be more valuable in the long run, so you should plan on holding onto the home and renting it out. Finally, always ensure you have plans and exit strategies in place before you buy an investment property, and never change them halfway through the game or you may get burned.

What Do Low Interest Rates Mean for the Market?

Unless you've been hiding under a rock for the past 4 years chances are that you've heard a lot in the news about our country's floundering real estate market. First there was the bubble, then an all out crash in some markets, and now we're slowly but surely trying to measure a come-back with home inventories falling by almost 20% in April.

Image © www.FreeDigitalPhotos.net

So with it being so difficult to obtain financing these days, what's driving the revitalization of housing markets? It could be the historically low interest rates.

Buyers

Unfortunately in today's real estate market there are few things that are fun for a buyer following the culmination of a contract. The house hunting is the fun part, but then begins the hurricane of financing.Your lender will expect paperwork detailing almost every aspect of your financial life, and they'll expect it in a timely manner. And then once you think you've surely surrendered everything short of the family pet the underwriter will inevitably request more information.

So for buyers in today's turbulent world of real estate financing low interest rates are a bright light at the end of what begins to seem like a very dark and never-ending tunnel. Receiving a lower interest rate means more than just paying less for the privilege of borrowing money, it also means the possibility of affording a larger home, as your payments are affected by your interest rate.

Sellers

You might have a hard time understanding how a seller benefits from low market interest rates. After all, they're not financing anything in order to sell.

The obvious benefit afforded to sellers through low interest rates is merely the pick-up in market activity that normally accompanies these rate changes. Lower rates mean better affordability for buyers, which means that buyers who weren't in a position to bid for your home before, can now consider it. And the more buyers, the merrier!

An influx in buyers also means more demand in the market, meaning more interest in the property, which could lead to a higher sales price than what you would have been able to expect in a market where demand is low.

Last week some lenders were advertising interest rates as low as 3.75%, a rate that would have been completely unheard of just a few years ago. With some statistics showing more demand in the market of late, these low interest rates could play a hefty role in the return of the housing industry, a benefit to both buyers and sellers at this stage.

Curbing your Home Insurance Costs: A Few Tips

Whilst the value of the average American home may not have changed much in recent months, the cost of protecting that home certainly has. Home insurance premiums have noticeably 'bumped' up of late, and now homeowners are left wondering if there's anything they can do to mitigate this.

© FreeDigitalPhotos.net

The good news is, there's actually several courses of action homeowners can take to reduce their insurance premiums. The following tips from Money Magazine are worth their weight in gold:

Shop for Discounts

The first thing to do, should your premiums rise by more than 5% when your policy comes up for renewal, is to call the company and ask exactly why they have increased. It's important from your negotiating position to know whether or not the premium increase is due to broad, marketplace increases, or if your own risk profile has changed. Knowing this, homeowners will be in a better negotiating position, whilst they will also be in a better position to compare prices, which should of course be done they renew anyway.

As well as shopping around, don't forget to look into the possibility of discounts. Buying insurance policies from the same provider will often be rewarded with a reduced rate ' possibly as much as 15% if you were to buy, say auto insurance and homeowners insurance from the same company.

Upgrade your Home

Numerous upgrades to your home can lead to savings on homeowners insurance. For example, adding a new roof will reduce the possibility of storm damage and should result in discounted premiums. Or else, fitting burglar alarms to every door and window will almost certainly be looked kindly upon by insurers, given that such an installment will significantly reduce your chances of being burgled. Other things such as new locks, fire alarms and storm shutters will all have the same effect.

Assess the Deductible

It used to be that homeowners were advised to take the highest deductible they can afford, as this would lead to reduced premiums. However, these days many insurance companies are recalculating deductibles to percentages, rather than using set amounts as they did before. Hence, this can lead to a substantial change.

Base Coverage on Replacement Costs

Many homeowners make the mistake of basing their coverage on their home's appraised value, which can often lead to them taking out more than they need. It's possible to obtain information regarding the average square-foot-per-replacement costs from your local home builders association, which is a far more accurate gauge for your own costs.

Market Watch Nashville ' Sweet Sounds From The Cumberland Row

Nashville is located on the Cumberland River in the north-central area of Tennessee, and is home to a large number of industries ' health care, banking, publishing, transportation and education.

Image courtesy GreenNetizen

As the capital of Tennessee, Nashville is well known throughout the world as an arts minded city. Its nickname  'Music City', is a well-earned monicker since it's home to the Grand Ole Opry and has a thriving music industry.

Real Estate

The real estate industry in Nashville, much like the rest of the country, has hit some bumps in the road, however the market appears to be on the mend.

Price per square foot ' According to Trulia.com, Nashville homes fell by less than 1% compared to the same time period last year.

Median sales price ' From December, 2011 to February, 2012 the median home sales price grew by 1.9% from the prior quarter and an increase of 4.5% from the prior year, reaching $158,200 ' a very affordable price.

Home sales ' During the same time period that sales prices grew, home sales fell by 64.5%. Right now Trulia lists nearly 4,000 resale and new homes and only 728 homes in various stages of the foreclosure process.

Listing price ' The average listing price for the week ending May 9, 2012 was at $314,353, which was 1.4% higher than the week before. Sales prices over the last 5 years in Nashville have grown by 8.4%.

Popular Nashville neighborhoods include West Meade and Inglewood, listing prices on average of $452,598 and $184,306 respectively.

The Greater Nashville Association of Realtors reported 2,186 home closings in April ' an increase of 25% from April of 2011. Closings up to April 2012 grew by 24.5% from those reported during the same time period in 2011.

Kendra Cooke, GNAR President, said 'Total sales are the best we've seen since June 2010, which was the initial deadline for the First Time Buyer Tax Credit. While some of the increase can be attributed to normal seasonal trends, the high number of closings is a clear indication that the real estate market in this region is showing significant improvement. The continuation of historically low interest rates, increasing economic confidence and increasing rental rates are all factors having a positive impact on real estate sales.'

Cooke continued, 'Inventory is down, but with overall inventory at a 9-month supply and residential inventory at a very balanced 6.5-month supply. Right now, sellers will want to be sure their homes are well-prepared for showing. While market activity is increasing, buyers are very focused on properties they visit being clean and fixed-up if they are going to seriously consider making a purchase.'

Business

Real estate professional Jan Harbor said that, 'Nashville is really on the ball. It was just voted as the No. 4 city in the country for job development by Gallup. Buyers are taking note of the growth potential here.'

Major corporations ' GM, Amazon and Nissan as well as others are invested in the Nashville business scene, and it is home to twelve Fortune 500 companies who have their corporate headquarters situated there.

'The city's consolidated government status makes doing business easier,' states Harbor.

'I am so excited to be a part of this thriving city where it is equally as great for business as it is a wonderful place to live, work and play,' continued Harbor. 'I agree wholeheartedly with the Nashville Chamber's slogan, Business is Good!'

Education

According to the U.S. News Best High Schools 2012 rankings report, Tennessee schools received a number of awards, with two of the top-ranked schools being located in Nashville. Hume-Fogg Academic Magnet High School and Martin Luther King, Jr. Academic Magnet High School both received a Gold metal and were ranked nationally at number 49 and 81 ' an amazing accomplishment.

Fun and Entertainment

There's no shortage of fun things to do and see in Nashville. There are more than 100 music venues according to Travel + Leisure, who rated Nashville Number 1 for its live music scene, Number 8 for nightlife and Number 16 for food.

The downtown area, known as The Gulch, left its run down, abandoned reputation and has been reborn into a hip, urban environment with classy restaurants and lively night life.

The temperate climate, bustling atmosphere and lively city night-life combine to create a great place for both singles and families. With no state income tax and low business taxes, more buyers will continue to be drawn to Nashville.

Are you involved in the Nashville marketplace? Let us know what you think!

Sales of New Homes Rise in April

New single-family home sales crept up again during April, a further sign that the building industry is finally beginning to show signs of life after years of misery and decline.

Positive outlook for builders © artenot - Fotolia.com

According to newly released Commerce Department housing data, sales of new homes grew by 3.3% over the last month, a rise of 9.9% since April 2011.

Barry Rutenberg, Chairman of the National Association of Home Builders, told the Wall Street Journal that April's increase in sales activity demonstrates a continuing, albeit gradual improvement for the industry, driven by hungry consumers looking to capitalize on low prices and interest rates.

Rutenberg pointed out that if it were not for strict lending rules, the outlook would most likely be even better:

'In markets where demand is rising, we could be seeing a faster pace of recovery if not for persistently tight lending conditions that are slowing both the building and buying of new homes.'

The Midwest saw the biggest increase in new home sales, rising by 28.2% in April. This was followed by the Northeast, which saw a rise of 7.7% in new home sales for April.

The south remains a problem, with new home sales declining by 10.6% in the last month.

New home inventories remain at a historic low level of just 5.1 month's supply, going by today's pace of sales. However, even this is not a problem, with experts saying that the low inventory should in turn lead to a boost in home prices in the future.

Indeed, prices for new homes have already risen by 5% on average over the last year. The Commerce Department reports that the median sales price of a new home was $235,700 in April.

Consumer Action: 'Housing Discrimination' Alive and Well'

Following a round of recent fair housing complaints and mortgage discrimination charges, the Consumer Finance Protection Bureau (CFPB) has opened its own front to protect credit consumers from discrimination.

'We want consumers to avoid the marketplace's silent pickpocket ' discrimination,' said CFPB Director Richard Cordray.

'We cannot afford to tolerate practices, intentional or not, that unlawfully price out or cut off segments of the population from the credit markets,' he added.

As part of its effort, the bureau is educating consumers about their fair lending rights and it vowed to go after lenders who practice discrimination.

The Equal Credit Opportunity Act prohibits making credit decisions based on race, color, national origin, religion, sex, marital status, age, public assistance status or exercising rights granted under the Consumer Credit Protection Act.

'The CFPB is educating consumers about their fair lending rights and pursuing lenders whose practices are discriminatory,' Cordray said.

CFPB enforces fair credit rules associated with auto loans, credit cards, student loans, and mortgages, but mortgage and housing discrimination has been in the spotlight lately, as evidenced by the April report, 'The Banks Are Back ' Our Neighborhoods Are Not.'

Twice victimized

The National Fair Housing Alliance's (NFHA) investigative report earlier this year found the same kind of discrimination that saddled minorities with unnecessarily burdensome loans during the housing boom, exists today in minority neighborhoods struggling with foreclosures.

The report found that REOs (for real estate owned by banks) in minority neighborhoods were substantially more likely to have maintenance problems and get less professional marketing, leaving festering eyesores in neighborhoods already victimized by abusive mortgages.

Shortly after the report, NFHA filed discrimination complaints with the U.S. Department of Housing and Urban Development (HUD) against Wells Fargo and U.S. Bancorp, both of which have denied the charges.

Wells Fargo, the nation's fourth largest bank, disclosed in a securities filing this month that it could face civil charges from the U.S. Department of Justice under laws that prohibit discrimination against minority home buyers, but denied any wrong doing.

'On the basis of the troubling findings we observed in our recent investigation of the practices of some of the largest banks in the mortgage lending market, NFHA has filed two initial complaints,' said Morgan Williams, an attorney and NFHA's fair housing enforcement and investigations director.

More could be ahead.

'We are continuing our investigation and speaking with other banks about making changes to their REO maintenance and marketing practices. NFHA is willing to work collaboratively with any bank to ensure that its REO maintenance and marketing practices comply with the Fair Housing Act,' Williams said.

The act prohibits discrimination concerning the sale, rental, and financing of housing based on race, religion, national origin, sex, (and as amended) handicap and family status.

Consumer Action action

Earlier this month, Consumer Action released it's Housing Discrimination Survey of 549 community-based organizations (CBOs) serving people with disabilities, immigrants, families with children, and other underserved consumers.

CBOs reported housing discrimination remains a widespread problem in the United States, with the majority of CBOs reporting cases of refused opportunities to rent or buy housing.

' Seven out of 10 CBOs say that housing discrimination is a 'very serious' or 'somewhat serious' problem for the people they serve. Half of CBOs said housing discrimination is a 'very serious' problem today.

' Four times more CBOs have 'seen housing discrimination go up in the last two years' than those who reported a drop during the same period, by a margin of 40 percent to 11 percent.

' About two thirds, 65 percent of CBOs, said the level of awareness about housing discrimination rights among the individuals they serve is 'somewhat low' or 'very low.'

'Housing discrimination is all too alive and well in the United States today. In fact, the changing face of housing discrimination now tends to zero in more on immigrants, the disabled and families with children than in the past,' said Ken McEldowney, executive director of Consumer Action.

'The ever-shifting focus of housing discrimination makes it doubly hard to root out, since CBOs and other agencies concerned with the problem must constantly educate different segments of the population,' he added.

' CFPB offers a 'Credit Discrimination Brochure' to help consumers root out and avoid credit discrimination.

' HUD offers a web page 'Fair Housing ' It's Your Right,' offering a host of related information and assistance resources.

Just Who Does Qualify For a Loan These Days?

The answer? Not many, that's who' While mortgage rates are being advertised as the lowest in a lifetime, the simple fact is that thousands of prospective buyers will never qualify for them. Lending standards have been tightened up considerably in an effort to avoid a new housing bubble, and now a new report illustrates just how difficult things have become for borrowers.

For many borrowers, having a down payment isn't enough © Scanrail - Fotolia.com

The report was compiled by the Federal Reserve, following a survey of major lenders in the US, and found that banks were much less likely to grant a mortgage to borrowers than they were back in 2006, before the market crashed, reported the New York Times.

Looking at the example of a borrower with a FICO credit score of 620 and a 10% down payment, the report found that the majority of banks were unlikely to issue a mortgage to any individual in this situation.

For borrowers with a FICO score of 680, the report states that moderate net fraction of banks were less likely now than in 2006 to issue a mortgage, irrespective of any down payment.

Furthermore, the report states that even borrowers with a FICO score of 720 could struggle to get accepted for a loan, as, compared to 2006, 'a modest net fraction of banks were less likely to originate loans to borrowers with a FICO score of 720 and a 10 percent down payment.'

However, survey respondents did indicate that the likelihood of a loan being issued in the case of a 720 FICO score would increase if the borrower was able to put up a deposit of 20% or more.

The report underlines the general perception that while mortgages continue to be offered at record low rates, numerous home buyers cannot get accepted for one, and even those who do find they cannot qualify for the lowest rates.

In its analysis of the report, the New York Times explained that borrowers with a FICO score of 720 would likely receive a loan at 3.70% interest, for a standard $300,000 fixed rate mortgage over 30-years. Meanwhile, a borrower with a FICO score of 620 would likely be offered a 5.07% mortgage interest rate, which amounts to an extra $242 a month on their mortgage repayment.

HomeFinder.com Agent Makeover Sweepstakes

HomeFinder

Need something to jump-start your real estate business? Managing a busy scheduling, marketing yourself as an agent, and keeping up with everything else involved with the relentless real estate industry can certainly be a daunting task, and it isn't uncommon for Realtors brush some of these minor, yet crucial, details to the side in hopes of someday catching up.

If this sounds familiar or you're desperately in need of a something that will help get you moving in the right direction, you may be interested in the HomeFinder.com Agent Makeover Sweepstakes  that is going on right now!

The first-ever Agent Makeover Sweepstakes will select five real estate agents at random to win an all-expenses paid trip to Chicago for a 2-day real estate business make-over. Prizes will include a flight to Chicago on September 12-14^th, a two-night stay in a fabulous downtown Chicago hotel with spa treatment included, a stylish new outfit, a professional photo-shoot, coaching from Chicago real estate experts, and extensive training on real estate specific social media, SEO for your websites, and various other aspects of online marketing.

According to HomeFinder.com, the contest was created as a way to show support for real estate agents across the country. As many in the real estate industry know, everyone from home owners, home sellers, and the professionals working in real estate have felt the effects of the recession and the housing crash, so re-energizing the winning agents and helping jump-start their business in this new era of real estate is the ultimate goal of the sweepstakes.

Get the ultimate makeover for your real estate business!

No purchase is necessary and any licensed real estate agent qualifies for entry. To enter the Agent Makeover Sweepstakes, go to HomeFinder website, or visit the official contest Facebook page. One entry per link is accepted for a total of two possible entries and the random drawing will be held on or around 8/13/2012.

Joe Heath is a graduate of Indiana University and also holds a Graduate Certificate in Real Estate Development from Drexel University. After working in the market research sector and authoring published Market Snapshots for Hanley Wood Market Intelligence, Joe now works as a Web Marketing Specialist and co-owns Real Estate Web Creation with his partner, Ted Guarnero, a 25+ year real estate veteran.

Second Chance for Foreclosure Victims

Foreclosure victims are bouncing back, with reports that some lenders are willing to forget the past and give people a second shot at owning a home.

Foreclosure victims are bouncing back © strider - Fotolia.com

According to the report in Reuters, a growing number of former homeowners are finding their way back onto the property ladder again, after having lost their previous homes to foreclosure or being forced to short sell.

Reuters revealed that the FHA is leading the way in helping foreclosure victims and short sellers to get back into real estate, providing special mortgages tailored to this group. In order for victims of foreclosure to borrow from the FHA, they have to stump up a down payment of at least 3.5%, and must have a credit rating of 620 or higher. These requirements are significantly lower than those associated with regular mortgage loans.

Greg McBride, an analyst with Bankrate.com, explained that the FHA-backed loans being taken up by former homeowners were 'not mainstream programs geared for mainstream borrowers.'

But despite the availability of mortgages tailored for former homeowners, anyone with ambitions to re-enter the housing market will have to make a huge effort to boost their credit score, which will have been severely impacted by any foreclosure or short sale.

Frank Donnelly, president of the Washington DC Mortgage Bankers Association, said that loan options currently on the table for ex-homeowners were only available to those who had made huge strides in rebuilding their credit score.

'They have to prove to lenders that it was something like a job loss that caused this, and not chronic delinquency,' explained Donnelly.

Apparently, many lenders these days are ready to take into account the reasons why an applicant lost their previous home. According to Reuters, lenders are much more likely to take a chance on a borrower who tried but failed to keep their home (due to job loss or other unfortunate circumstances) than an applicant who chose to walk away even though they could still afford to make regular payments on their loan.

There's No Time Like The Present!

The moribund real estate market in the US took half a decade but finally it is showing marked signs of recovery. Are you now thinking of making a move on a particular real estate property, now that prices appear to have leveled off?

© Patryk Kosmider - Fotolia.com

If answered yes, experts say that this is possibly the right time to take the plunge. In most places around the United States of America, you can still take advantage of the low prices of the real estate properties and to add to your joys, the present mortgage rates are at once-in-a-lifetime-record low levels. The 15 year and 30 year fixed mortgage loans are being lent to people at an interest rate of 3% and 4% respectively and this is the reason that a large number of struggling homeowners are now opting for mortgage refinance.

Although the prices of properties are also at their 2003 record low levels, the signs of an imminent resurrection are everywhere you look. In the month of March, 2012, the number of people signing contracts to purchase homes rose by 5%, according to the reports of the National Association of Realtors, the highest level in the last 2 years.

There are many prospective homebuyers who are shocked that one clash of the bubble era is back again. As per the studies conducted by Wall Street Journal, there are less homes for sale in many markets than what there were last quarter. There is a comparatively tight inventory in markets like Phoenix, Sacramento, Washington, D.C., leading mortgage experts to caution that the law of supply and demand is going to kick in soon.

Are buyers more interested short sales and foreclosures?

No, according to recent studies, prospective homebuyers are shying away from these. Many foreclosure specialists are of the opinion that there are wars over foreclosures, as investors are sure that such rock-bottom prices aren't going to last forever. An increase in the number of short sales is actually a positive sign, as short sales cause less harm than foreclosure. Foreclosures drive values down and furthermore, foreclosed homes often fall prey to neglect and vandalism.

For banks, short sales are better as they can let go of distressed properties without having to pay so many administrative costs. Short sales have already eclipsed foreclosure sales in the last quarter of 2011 and this shows a constant rise in the number of short sales as compared to foreclosure sales.

Are more buyers investing in vacation homes?

The real estate recovery is being driven by the fact that an increasingly large number of buyers are snapping up vacation homes. Since 2011, vacation home sales have grown by 8% and this rise is primarily due to the fact that more people are looking for 'getaways' that are closer to their primary residences so they can curb their travel costs.

Buying investment properties has also risen by 66%, as there are many investors scooping up cheap foreclosure properties and renting them out. Experts are saying that the foreclosure to rental conversion business could soon be worth $100 billion a year. Buyers are slowly beginning to comprehend the huge potential of the real estate investing market, with more than a quarter of houses sold in 2011 being investment properties. This is one of the reasons why homeownership hit a rock bottom level in the first quarter of the year, as per the data from the US Census Bureau.

As soon as the mortgage lending rules loosen up, there will be more renters who would love to become homeowners. As young adults in the US are clobbered by high interest student loan debt, this is keeping them from taking the plunge into the US housing market. Economists are of the opinion that as  financial stability is restored in the US, there will be a marked improvement in the real estate market too.

About the Author: Chris loves to write financial articles and she is a contributory writer associated with many financial communities and has written several articles on debt consolidation, debt settlement, loan, mortgage, loan mortgage calculator for various financial websites. She holds her expertise in the Debt industry and has made significant contribution through her various articles.

California Moves to Block Bulk REO Sales

Lawmakers in California have set out to prevent investors taking advantage of the recently proposed 'REO to Rental' program from, which would allow buyers to snap up foreclosed homes in bulk, on condition that these homes are then rented out for a stated period of time.

California lawmakers want to prevent bulk sales to investors © morganimation - Fotolia.com

Gary Miller, a Republican, is sponsoring a bill known as H.R. 5823, or the 'Saving Taxpayers from Unnecessary GSE Bulk Sale Program Act of 2012', together with seven other co-sponsors, reports Inman News.

The California Association of REALTORS was quick to applaud H.R. 5823, after having previously spoken out against the REO bulk sales program, which would allow investors to snap up blocks of Fannie Mae-backed homes that have fallen into foreclosure.

LeFrancis Arnold, the president of CAR, said that the REO bulk sales program would only hurt genuine home buyers, who already face stiff competition from investors.

'We are hearing from our members that housing supply is extremely tight, with REO inventory being especially low at only a two-month supply,' explained Arnold.

CAR housing data shows that the majority of bank-owned homes in the state close within 60 days of coming on to the market, and many of them are sold for prices above going rates.

The H.R. 5823 bill comes after the Federal Housing Finance Authority (FHFA) apparently ignored a letter from California lawmakers sent on April 19, which outlined their objections to any REO bulk sales program in the state.

The FHFA first announced its bulk REO sales program back in February of this year, setting aside almost 2,500 of its REO homes for sale in selected markets, including Los Angeles-Riverside, California; Atlanta, Chicago, Las Vegas, Phoenix and several parts of Florida.

UK Mortgage Lending Falls, and Summer Is Likely to Be Slow

In April mortgage lending in the United Kingdom dropped by nearly 20%, according to data recently released by the Council of Mortgage Lenders. Figures for April show mortgage lending was an estimated £10.2 billion, compared to £12.6 billion in March, which means lending has grown by just 2% year on year since April 2011.

© Nabar - Fotolia.com

In spite of the decline economists think the underlying picture is better than suggested, and point out many first-time buyers took advantage of the stamp duty concession which came to an end in March, and that mortgage lending has been relatively buoyant during the last few months.

It looks uncertain as to whether this will continue, as the crisis in the Eurozone could negatively affect the UK economy, and could cause conditions in the housing and mortgage markets to worsen. Overall most expect momentum in the housing market to slow down, but if the crisis in the Eurozone becomes particularly bad then it could cause a sharper correction. The Eurozone crisis has been ongoing for many months now, and in spite of this, lenders have still managed to increase activity since the same time last year, and mortgage demand is generally pretty healthy.

There are still considerable numbers of first-time buyers and buy to let investors who are being turned down for finance, as many are failing to qualify for high loan to value mortgages, and are being forced to look for alternative forms of funding.

With celebrations for the Queen's Diamond Jubilee just around the corner, and with the Olympics due to begin in just a couple of months, the housing market is likely to slow down over the summer anyway, and experts think figures for the rest of the year will fluctuate between decline and growth.

Georgia ' No Plans To Help Homeowners

The National Mortgage Settlement has been finalized and the $2.5 billion dollar bank payout is being allocated among the 49 participating states. But among those states that were hardest hit by the foreclosure crisis, only Georgia has no plans to allocate any of their $99 million dollar share of the settlement to help homeowners who are struggling to avoid foreclosure.

Georgia is not going to allocate any foreclosure settlement funds to help homeowners © olly - Fotolia.com

In spite of being ranked in the top ten states for foreclosure activity for several years, and currently ranked at number 5, Georgia plans to use it's mortgage settlement funds as grant money to help attract new business to the state, in hopes of creating new jobs.

Andy Schneggenburger, Executive Director of the Atlanta Housing Association of Neighborhood-based Developers says that Governor Nathan Deal's decision to ignore the ongoing foreclosure crisis shows the extent to which the Governor and others in the state legislature have failed to comprehend the depths of the foreclosure problem. Indeed, over the past few years, even non-profit affordable housing organizations have faced foreclosure due to a lack of funding to complete affordable housing projects.

Back in February of this year, when the settlement was announced, Georgia Attorney General Sam Olens gave an interview to WSB Radio in Atlanta, in which it appeared that help would soon be forthcoming for many Georgia homeowners who may have been wrongfully foreclosed on, or were struggling to avoid foreclosure. But under the terms of the settlement, the AG has no direct authority to allocate those funds. That's been retained by the Governor and the state legislature. They've decided to redirect those funds for other purposes.

As of this writing, I've seen nothing to indicate that Georgia will even allocate adequate funds from the settlement to help the Attorney General's office investigate and prosecute mortgage fraud, even though this played a big part in the housing crash which took much of Georgia's job market with it.  Mortgage fraud and the real estate crash are the reason for most of Georgia's current unemployment and budget woes.

Georgia suffered a severe unemployment spike as the housing market melted down. Lost jobs mean more foreclosures, and more foreclosures mean more lost jobs in supporting industries that are already in the state.

Thousands of businesses and other entities depend on the housing market for all or part of their income. This includes manufacturing, retail and wholesale business, governments and schools. Much of our economy is tied to houses, the things that go in them, the taxes we pay to own them, the money we spend insuring them, and the mortgage interest that investors earn when we pay for them.

Heavily dependent on new construction and renovation of homes for jobs, Georgia has seen much of the housing related job base erased by foreclosures, stalled building projects and builder failures. It is number-one in the nation for bank failures related directly to failed real estate projects and excessive mortgage fraud.

With unemployment officially near 12% in 2010, it is still at 8.9%, a very high rate for a sun-belt state that has historically enjoyed solid employment growth. Much of the reduction in Georgia's 'official' unemployment has come from the expiration of long term unemployment benefits. Recently Georgia reduced the term for collecting unemployment from 29 weeks to only 14. (I suppose this means that the unemployment numbers will improve drastically in about 12 weeks')

In spite of the temptation to use the funds to lure new business to the state, the fact remains that new technology is allowing businesses to hire fewer workers than ever before. Even the new one million square foot Caterpillar manufacturing facility, to be constructed near Athens between March 2012 and March of 2013 will only create about 500 construction jobs for a period of one year.

The facility expects to employ 1,400 Georgians when it is completed next year. Meanwhile, Georgia has moved from 8th to 5th on the list of top ten foreclosure states, and expects more than 120,000 new foreclosures to be filed in 2012. In addition, according to the Case-Schiller home price index, metro Atlanta, GA, tops the list of metro areas in terms of property value lost over the past year, and has been in the top ten since 2008.

While the employment needs of the state are severe, most of the jobs lost were in sectors directly related to the housing industry. This includes local government's and schools, where falling property tax revenues have led to thousands of job losses and service cuts. The business of providing or renovating housing is one big revenue generating machine that impacts a large percentage of Georgia's retail, wholesale and manufacturing sectors. A vibrant housing industry would also make more businesses want to relocate here.

It's difficult to put a price on the impact of foreclosures. But everyone agrees that the impact has been very widespread in Georgia. Virtually every residential property in the state has been reduced in value to some extent, with most single family homes losing anywhere from 25% to 50% of their original value. Lost property tax revenue has reduced local government budgets and forced cuts in services and jobs. Businesses related to the housing industry such as furniture and carpets are struggling to stay afloat. Homeowners watch helplessly as their home equity is wiped out by falling home prices caused by high foreclosure rates.

At some point it's arguably a better investment to reduce foreclosures and slow the loss of property values, as those losses are growing at a much faster pace. And many new jobs created in the midst of a crippled housing market are likely to be displaced by more losses of existing jobs. The housing market is an integral part of today's consumer economy in Georgia. Saving housing IS a major investment in job retention and job growth.
'''''''''''''''''''''''''''''
Donna S. Robinson is a 16 year veteran of the Real Estate Industry, and a lifelong resident of Georgia. Donna offers coaching and consulting services to real estate investors and investment companies. Her website is RealtyBizConsulting.com

Prices in India Still Rising, but Experts Not Worried

The real estate market in India is pretty lively at the moment, and worries have been raised over the prospect of a property bubble. Although prices are higher, demand has actually fallen in six major cities, and Indian buyers are increasingly choosing to wait and see what happens.

© vectomart - Fotolia.com

They are anticipating property prices will fall, as well as interest rates, and demand in these major cities has dropped by a massive 40% during the last 12 months, while new project launches have seen demand fall by nearly 50%. In spite of this decline in demand developers haven't yet had to cut their prices.

Over the last few years property prices have risen considerably, and this has largely been due to speculators who have been buying up large blocks of flats currently under construction in up-and-coming neighborhoods. After these kinds of purchases, developers often raise prices to help these investors realize profit.

In fact developers have a number of tactics designed to generate demand for projects, and will frequently put up signs saying the project has been sold out within just a few weeks of its launch. In the meantime brokers for the developer will actively resell these properties. In general it takes around three years for a project to be completely sold out. However the developer tactics are not the only reason for rising property prices, as it now costs more money to build due to increased cost of construction and land prices.

There is still a shortage of affordable and mid-range priced residential property, and analysts don't think there is any real prospect of a property price bubble forming in the Indian real estate market.

However they are concerned about the risk due to speculation. They think some of the prices of new property in locations lacking in infrastructure could decline in the next few months by between 5% and 10%, especially in locations where speculators have been particularly active.

In spite of this most agree it's a good time to buy property provided you intend to hold onto it for more than three years.

Realtors Believe in Housing Recovery

Real estate agents in the US believe that the housing industry is finally in recovery mode, with nearly 70% of respondents in a recent survey saying they expect prices to start rising soon.

Realtors believe the recovery is on its way © Petr Ciz - Fotolia.com

The survey of RE/MAX real estate agents revealed that four out of five agents believe prices have already hit rock bottom, and that a resurgence led by a growing demand for low to mid price homes will materialize by the end of the year, reports Property Wire.

Margaret Kelly, CEO of RE/MAX, said that many agents were already seeing evidence of a recovery:

'For active real estate agents, this market is definitely heating up. They are witnessing a recovery across the country fuelled by home buyers and sellers taking advantage of a significant market opportunity.'

Just over two thirds (66%) of RE/MAX agents believe that real estate prices will rise by the end of this year. This belief is backed up by the realtors' perception that demand for housing is once again beginning to grow, especially in the low-to-mid price property bracket.

According to the survey, 80% of agents said they were seeing a 'good' or 'very good' demand for homes in the low price bracket, with a further 71% claiming they had seen 'good' or 'fair' demand for homes in the mid range price bracket.

The growing demand is not being led by any one demographic either, which can also be taken as evidence of a solid recovery taken shape. According to Property Wire, first time buyers account for approximately a third of all new homes sold, with investors and current homeowners accounting for about a third each.

Even so, there are problems in the way. Agents say that the toughest challenge for first time buyers is obtaining credit, with lenders still insisting on very high credit scores before they'll consider giving out a loan. Other problems cited by first time buyers include coming up with a down payment, and also finding a home to buy ' agents say that some markets are actually experiencing a shortage of suitably priced homes for sale in the low-to-mid price brackets.

For repeat buyers, they have the additional problem of having to sell their current home before they can make a move.

Realtors Demonstrate Support for Home Ownership

Over 13,000 realtors showed up to support last Thursday's Rally to Protect the American Dream, while thousands more took part in a virtual rally, sending a clear warning to policymakers in Washington DC ' home ownership is vital and needs to be protected.

© iQoncept - Fotolia.com

The rally, which took place by the Washington Monument on National Mall in the capital, saw numerous speakers repeat those sentiments as they took turns to address the crowd, reported Realtor Mag.

Leading the cheers was Lawrence Yun, the NAR's chief economist, who stressed that mortgage interest deductions belong to the American people, rather than politicians looking to boost their tax revenues.

Steny Hoyer,  U.S. Representative for Maryland's 5th congressional district and a Democrat, also took to the stage, taking the opportunity to urge Congress to listen to the opinions of realtors when it comes to crafting the country's policies on real estate.

'God bless all of you, America is better for what you do,' Hoyer told the cheering crowds.

Hagan Stone, RPAC fundraising chair for Tennessee and a realtor in Brentwood, Tenn., told Realtor Mag that the government needed to ensure real estate was at the forefront of their economic policies. Moreover, the government should pull out all the stops to avoid harming the housing industry any further.

'I've never seen anything like this,' said Stone. 'This makes me incredibly proud to be part of the National Association of REALTORS®.'

Chris Polychron, a realtor from Hot Springs, Arkansas, and nominee for the NAR's 2013 First Vice President, echoed those sentiments, saying 'I've never been more proud. We're not here for ourselves, we're here for the American homeowner.'

Fears of Real Estate Bubble in Vancouver Are Apparently Overrated

There has been a lot in the news recently about the possibility of a real estate bubble in the Canadian housing market, with Finance Minister Jim Flaherty warning that Canadians are taking on too much debt and that they could face problems once interest rates begin to rise.

Vancouver is "safe" from a real estate bubble, say the experts © Lijuan Guo - Fotolia.com

However a report from the Canada Mortgage and Housing Corporation doesn't think this is the case, and hasn't found any real evidence for a property bubble, even in Metro Vancouver. Vancouver's property market has been red hot over recent years, but there's no denying it's slowing down right now. There's been an increase in listings combined with a drop in sales, and according to data from the real estate board of Greater Vancouver, property sales are down by 19% compared to the same period last year.

This might seem a huge decrease, but it's important to remember these figures are being compared to a time when there was a high point in activity in the real estate market, due to changes in the federal government mortgage insurance criteria. Although sales may be down by 19% prices are up by nearly 4%, but even this figure can be confusing as the numbers can quickly change on a month-to-month basis depending on the number of multimillion dollar houses sold in West Vancouver.

The article in Global BC points out that the Canadian economy is still in pretty good shape, all things considered, and there's a good supply of homes combined with low interest rates. While the number of sales may be falling, prospective purchasers are warned property prices might not follow suit.