HREU Realtor Coaching Students….and future students…we have a question for you…
How bad is it?
Realtors, more “bad new” or is this really good news….
Many believe that the market has months of continued depreciation. Lets be very clear about this next point…
Regardless of how bad the news reports are, regardless of how high the unemployment rate climbs and of course how low the home prices drop…this market is ripe with opportunity.
Think of it this way…there never has been and never will be another time when caring, skilled Realtors have been so needed. There are literally millions of desperate homeowners who are in immediate need of agents who know how to help them in this market…
Want proof…read this(From the AP)…Note: The homes that are selling are the REOs. So, you need to get REO listings…
Home prices fell in a record four out of five U.S. cities in the third quarter as low-cost foreclosures flooded the market and the U.S. housing market’s decline spread throughout the country.
Among 152 metropolitan areas included in the trade group’s survey, 120 posted declines in median home sales prices compared with a year ago, the National Association of Realtors said Tuesday. Nationally, sales fell by almost 8 percent in the third quarter compared with the same period a year ago.
Sales of foreclosures and other distressed properties made up around 40 percent of transactions in the quarter, bringing down the median price by 9 percent from a year ago to $200,500.
Sales fell in all but four states in the Realtors’ group’s report. The exceptions were Nevada, California, Arizona and Virginia, where buyers have been able to snap up foreclosed homes at a bargain.
“A very large proportion of distressed home sales are taking place at discounted prices compared to more normal conditions a year ago,” Charles McMillan, the Realtors group’s president, said in a statement.
That’s especially true in places like Sacramento and Riverside, Calif., where prices were down 37 percent and 39 percent, respectively, from last year. The two California cities had the largest annual price declines in the report.
AND, the REO listing opportunity is JUST STARTING…
By the end of the year, foreclosure listing service RealtyTrac Inc. expects more than a million bank-owned properties to have piled up on the market, representing around a third of all properties for sale in the U.S.
Want more proof that there will be REOs-a-plenty……
many economists believe the economy has fallen into a recession that could be the worst downturn in more than two decades. As layoffs accelerate, that’s likely to put further downward pressure on housing prices.
This is no longer a SUB-PRIME mortgage problem. This is a global recession problem. In other words, the depreciation isn’t about mortgage resets anymore….its now about the overall economy. That means Realtors with REO listings, Short Sale listing skills will be in demand for YEARS to come…
Freddie Mac said last week that rising unemployment rates, tightening credit and deteriorating economic conditions “contributed to a substantial increase in the number of delinquent loans,” including loans made to borrowers with strong credit.
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