Real Estate Directory

Its Tough Out There

The Estate Agents tough market survival Guide

TENSE, NERVOUS HEADACHE?
As an ex-agent I know what it's like to stare into the abyss, metaphorically speaking of course, and with more than 37 years experience, I came instead to think of the ups and downs of the property market as more of a roller-coaster ride than a blind leap into a black hole. Everyone is in the same boat and it’s interesting to see how agents react in these times.

Although it might appear that you could be about to crash and burn, the reality is that so long as you work your business and develop strategies, you’ll not only stay on track but you'll actually rise up again stronger than ever before. Bring it on!!!

Here are seven simple and highly effective marketing tactics for you that have certainly put me in good stead over past slow markets. You may regard them obvious and they probably are; but it's one thing having a thought, it's quite another doing something about it and it always mystifies me why so few agents employ them.

In part this is why we set up Property Creative - to encourage and help you to take action, to develop strategies and to make this a time of opportunity rather than one that gives you a headache.

Sam Zell on the Housing upturn

Billionaire investor Sam Zell, owner of the Chicago Cubs, Chicago Tribune, LA Times and more says we are not in a recession and are not going into a recession. He says that the US economy will avoid recession as the housing market begins to recover this spring.

"Obviously what we have going on is an attempt to create a self-fulfilling prophecy," said Zell, chairman of Equity Investments Group.."We have two Democratic candidates who are vying with each other to describe the economic situation worse. The reality is that if you live on Wall Street and you're in the credit markets the world couldn't be worse. If you're a farmer and you're getting $25 for your wheat, you're having a great time. If you're a CEO and you've got a balance sheet that's bullet-proof, you're in a great position. This whole thing is way out of control, way out of hand."

Detroit Making a Comeback

Detroit Rock City is living up to its name sake while bouncing back with sales up by 15%, doubling last years closings from last year. Sales of residential and condominium units in Detroit nearly doubled in January, compared with the same month a year ago, and the region overall got a nearly 15 percent bump, according to real estate data firm Realcomp. Thats 45.5 % increase in the month, with 736 closings. 

2 Million Foreclosures

From Inman NY 08:

2 Million Foreclosed Homes!

Communities will be ravaged....An Economists view of the current real estate crisis, how it happened and how to fix it.

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Consumer Confidence >>

Home Sales and Gas prices did not stop a consumer spending binge in Novemeber. Spending wnet up the highest in 3 1/2 years( May 2004) -by 1.1%. This squelches fears of an imminent recession. A word used most ignorantly in the press currently.
 

Well on the one hand...

Yesterday, little Chapman U of Orange County came out and said look for recession next year with more blood spilt in real estate. They are  predicting a national recession with the first decline in jobs locally in five years in 2008.

Economists at the school see a brief downturn—with a decline in the national economy in first and second quarters, and then a pickup in the second half.

They do however, see the  national economy growing 0.9%, driven by growth in the second half.

UCLA comes out today and says it irresponsible to use "r" word.

"Now there are countless prognosticators throwing around recession. That may be the best indicator that a recession is not coming soon," stated Ed Leamer, director of the University of California, Los Angeles, Anderson Forecast.

"Better remember a recession is not measured by the frequency with which the newspapers use the 'R' word. To have an official recession commencing anytime soon, we would have to experience a rapid rise of the national unemployment rate" from a level of 4.6 percent to about 6 percent by the end of 2008 -- a loss of about 2 million jobs.

Bill Gross Says Watch Out R

2008 will be “tumultuous” and the Federal Reserve may need to bring its interest rate below 3%, bond fund manager Bill Gross of Newport Beach-based Pacific Investment Management Co. said.

“To restart a near recessionary economy we may need to eventually go down to 3% or lower,” said Gross, the chief investment officer of one of the world's largest bond funds.

Historically, rate cuts have gone to 1% with recessions. After factoring in inflation, the Fed would have to go to 3% to achieve a similar effect, Gross said.

Thats all fine and good, but liquidity is a big factor in my opinion. I think most the challenge in real estate loans is getting funding.

Apartment Construction

The Commerce Department reported Tuesday that total housing construction rose by 3 percent in October to a seasonally adjusted annual rate of 1.229 million units. Most of this growth was in Apartment construction. Interestingly in areas like Orange County California rents have increased during the homes sale slowdown.

Newport Beach Chief tells us about Subprime

Bill Gross, chief investment officer of the world’s largest bond fund today told CNBC that:

Subprime credit crisis will only worsen over the next two years, Credit markets face another $250 billion in loan defaults and delinquencies for the remainder of 2007 and throughout 2008, Mr. Gross of Pacific Investment Management, or Pimco, told CNBC.

Bubble Resistant

There is a strong correlation when home prices stay strong average rents have jumped as much as 3 percent.

These are the strongest rental increases:

1. San Francisco, $1,757, 3 percent
2. San Jose, Calif., $1,473, 2.4 percent
3. New York City, $2,657, 2.1 percent
4. Seattle, $973, 2 percent
5. Oakland-East Bay, Calif., $1,300, 1.8 percent
6. Orange County, Calif., $1,493, 1.7 percent
7. Washington, D.C., $1,301, 1.7 percent
8. Baltimore, $945, 1.7 percent
9. New Haven, Conn., $1,065, 1.6 percent
10. Philadelphia, $981, 1.6 percent