Existing Home Sales Drop 5.3% in January

Real Estate News & Commentary by Chris McLaughlin, February 25, 2009
http://www.shortsalesriches.com/welcome.html

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Recessions hit us all differently. Al Capone
once complained that hard times forced him
to lay off 4 judges and 2 Congressmen.

Seriously, the results are always uneven in bad
times. Most people lose money, but some actually
get rich.

But if you’re in the real estate business, then
you have one of two choices: feast or famine.

Both are available. Which one have you chosen?
Click here to learn about our Recession Proof Real
Estate Investing webinar tonight:
https://www2.gotomeeting.com/register/628859068

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The National Association of Realtors reported that existing home sales declined by 5.3% to a seasonally adjusted annual rate of 4.49 million units. Some analysts believe buyers wanted to learn more about the incentives they might be given in the Obama stimulus package before making a purchase. Lawrence Yun, NAR chief economist, said there was hesitation by some home buyers. “Given so much stimulus package discussion in January, some would-be buyers simply sat out for clarity and certainty on the nature of housing stimulus,” he said. “The housing market will soon get a lift from very favorable buying conditions – not only from improved affordability, but also from the stimulus of an $8,000 first-time home buyer tax credit, and higher conforming loan limits that will allow more people to tap into 50-year low mortgage rates.”

To rent or to buy? That’s the question raised by the Wall Street Journal in an article today by Nick Timiraos. The article notes that for the past 18 years after tax mortgage payments have averaged 26% more than rent payments, but with the decline in home prices that number has moved to 24%. And if mortgage prices continue to drop to 4.5%, as many expect, the gap will close to just 14% more than rental payments.

And in some metro areas the rent gap is becoming a lot closer. Between 1990 and 2008, Los Angeles mortgage payments used to average over 60% more than rent payments but now they are just 30% more than rent. When adding in the mortgage interest deduction on one’s taxes that gap narrows even further.

The Mortgage Bankers Association said that mortgage applications dropped last week by 15.1% to 743.5. But the decline should be viewed in the context of the prior weeks’ surge in applications to 45.7%. The four week moving average was up .4%.

Now on to our real estate educational section …

Who You Goin to Call?

One of the most common complaints that keep short sale properties on the market is the lack of maintenance and/or outright vandalism taking place in vacant homes across the nation. While this is a very real concern, many of the problems are less costly and time consuming to repair than you might expect. Short sale investors searching for fast and affordable ways to makeover their latest purchase don’t need to spend a fortunate to increase curb appeal and demand a higher price; instead, they only need to pick up the phone to schedule the following fast and affordable help:

Call a Landscape Company. First impressions matter but overgrown hedges, dead flower beds and large dry patches scattered throughout the lawn are commonly encountered short sale problems. Rather than spend your hard earned time doing lawn maintenance, simply call a company to handle it all for you. Pay over the phone via credit card and remember, it is a tax write-off. Within a day or two you can transform even the worst landscape into a veritable Garden of Eden.
Call a Painter. Once the yard is taken care of it is time to invest in a few pails of paint. Both the interior and exterior will typically benefit from a fresh coat of clean, color neutral paint. Call a company to have it done for you – or if you only need a quick refresh, a handyman service often costs less than a professional paint company. Be sure to save the receipts for tax purposes. Those on an extra tight budget can purchase “oops” paints and either remix or get creative in the color scheme.
Call a Handyman. Every home has a few areas in need of attention; simply schedule a handyman to take care of those broken locks, sticky windows and other minor irritations that make a home appear old and uncared for. A handyman will also be able to assist in debris removal or other odd jobs that might remain.
Call a Cleaning Company. Make sure they are a full service cleaning company able to take care of the carpets, air ducts, tile and wood floors plus regular maid services all at once. Negotiate a big price break for having all work performed at one time and insist upon the use of non-toxic “green” cleaners that use the latest in enzymatic odor removal. The cleaning company is also able to provide carpet repairs and other services to restore everything from unsightly grout to resealing the concrete around a pool. Ask for quotes before investing in replacements.

See you at the top!

Chris McLaughlin

http://www.shortsalesriches.com/welcome.html

P.S.

Don’t miss out on Thursday’s amazing webinar on Recession Proof Real Estate investing:

https://www2.gotomeeting.com/register/628859068

http://www.shortsalescoach.com
http://www.shortsalesriches.com
http://www.reomillionaireclub.com

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that want up-to-the-minute news, & how it impacts
us and our market…

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About the author:

Chris McLaughlin is widely known as America’s top
Real Estate Attorney and Investment Consultant.

    * As the top Florida foreclosure and pre-
      foreclosure expert, he oversees more than
      100 short sale & REO closings each month

   * Long-time authority on real estate investing
      and rapid flipping of distressed homes. Owns
      portfolio of nearly 100 high-value, high-profit
     properties

    * Owner and Supervising Broker of one of Florida’s
     largest Real Estate firms, running 4 different
     offices, supporting nearly 450 agents, uniquely
     positioning him to help thousands of investors
     make money in the biggest market opportunity ever!

     * Highly sought-after speaker, consultant, and
      seminar leader for current trends and hot topics
      in Real Estate Investing, Entrepreneurship, and
      Wealth Building

* On twitter: http://twitter.com/mclaughlinchris
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Existing Home Sales Drop 5.3% in January

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