Archive for December, 2008

Feedback loop

Judy Jones, who used to police foreclosed homes in Corona, Calif., for code violations until the city laid her off, could now be facing foreclosure herself. Her plight illustrates this CBS news piece on the worsening feedback loop between the housing downturn and the economy.

As the economy continues to slow and layoffs mount, that puts more homeowners in a position where they can’t make their mortgage payments. That creates more foreclosures, adding to strains on the financial system that threaten to cripple the economy.

The Mortgage Bankers Association said Friday that at the current rate, 2.2 million homes will enter the foreclosure process this year, and that next year is likely to be worse. We also learned on Friday that employers laid off 533,000 workers in November alone, sending unemployment to a 15-year high of 6.7 percent.

While real estate comebacks have gotten us out of past recessions, it’s hard to imagine that happening this time. Housing markets are already weak as this recession starts to pick up steam. An estimated 12 million homeowners are already "upside down" — they owe more than their home is worth — making it harder for them to avoid foreclosure when faced with a job loss or resetting ARM loan.

Mortgage rates are falling, thanks in part to the Fed’s plan to buy $600 billion in debt and mortgage-backed securities issued by Fannie Mae, Freddie Mac and Ginnie Mae. There’s even talk of a Treasury Department program to get rates on conforming loans all the way down to 4.5 percent.

But can the Mortgage Fairy save us? Underwriting standards remain tough for many would-be home buyers, and many who can qualify are fearful of buying in such uncertain times. Home prices may have fallen in their market to the point where they are seeing bargains they’d like to take advantage of. But it’s hard to make what for many will be the biggest purchase of their lives when their job may be the next one to evaporate.

The bottom line? Home prices in many markets may continue to fall, overshooting historic price-to-income trend lines on their way past levels where they would normally find support from economic fundamentals.

Originally by Matt_Carter from Inman Blog on December 5, 2008, 4:20pm

Stay Connected With the Industry at Connect

This year has been a period of tremendous upheaval. Our industry in particular has been heavily hit and every day we hear about more and more of our friends and colleagues that have been laid off due to these unprecedented economic conditions.

Inman News wants to help. Our Community section, for example, features a number of available positions in our job search board.

We also recognize that our upcoming Real Estate Connect conference in New York City is the industry’s premier event for high-level networking. In the spirit of keeping our community strong, we want to extend a special opportunity to any industry professional that has recently lost their job to attend Connect and take advantage of this unique networking opportunity.

If you would like to attend Connect but are unable to do so due to a recent job loss, please send an email to elaine@inman.com or call 1-800-775-4662 ext. 128 for special consideration. All information will be kept strictly confidential.

Originally by Inman_News from Inman Blog on December 4, 2008, 3:36pm

Start the year off right with Connect NYC ‘09!

We all make New Year’s resolutions. I can’t think of a better way to fulfill your business resolutions for 2009 than by attending Connect NYC ‘09.

There are currently over 750 people registered to be at Connect NYC ‘09. All of those people are going to be getting their year off on the right foot by gathering knowledge, information and inspiration that can only be found at an event as unique as Connect NYC ‘09. The brightest minds in the industry will be there, sharing, learning, and discussing. With over 750 attendees already registered, chances are that some of your competitors will be there, too, so don’t miss out!

Because the response to Connect NYC ‘09 has been so great, we wanted to extend the early bird pricing for one more week, so that as many people as possible can take advantage of this awesome opporunity to energize their business for 2009. You’ll have through December 7th to save with early bird pricing for Connect NYC ‘09.

With all of the smart, insightful, successful people that are already attending, shouldn’t you be one of them? Don’t miss out!

Originally by RealEstateZebra from Inman Blog on December 2, 2008, 1:49pm

An Invitation to Connect

As you’re probably well aware, we’re counting down the final days before discount pricing ends on registration for Real Estate Connect NYC 2009. Inman News has put together what looks to be our best Real Estate Connect conference yet, January 7-9th in New York.

Real Estate Connect offers the strongest content in the industry, with stellar keynotes, panelists, case studies, and interactive forums, plus incredible opportunities for shared learning and networking. We’d love for you to join us. So consider this your official invitation to Connect.

Remember, prices go up after this Sunday, so if you haven’t registered yet, you’d better get moving! Register Here.

Originally by jbernheisel from Inman Blog on November 26, 2008, 2:27pm

On the double …

What the heck is going on in California?

The rate of sales for resale single-family homes flew up 117 percent in October compared to the same month last year, while the median price shot down about 40 percent (see Inman News article).

The California Association of Realtors explained that the sales surge was largely driven by areas with a high concentration of distressed-property sales (short sales, sales of bank-owned or REO properties, and sales of homes in a foreclosure process, as examples).

The record year-over-year gain in the sales rate in California occurred in the same month that the National Association of Realtors reported (see Inman News) a record year-over-year drop in the national median price of U.S. resale homes (down 11.3 percent).

Check out this Inman News graphic to view some trends on some of the pricing extremes in California cities, city areas and counties, based on data provided by the California Association of Realtors and DataQuick.