Last night I started watching the Republican Presidential debate. This debate was focused on the economy and as a real estate agent, I was interested. I turned the debate off after the first question. Both Fred Thompson and Mitt Romney responded to a question about the housing market by stating that the economy overall is in good shape and the housing market/crisis is not as bad as everyone says. In fact, they both stated that relative to the foreclosure crisis and it's affect on the economy, we are seeing a "one state recession". That state being Michigan where foreclosure rates are extremely high.
Here's the reality. Michigan's foreclosure rate of 1 filing for every 320 households ranked the third highest for July 2007. Detroit does rank the highest for metro areas with 1 filing for every 97 households. Nevada is actually the highest in the nation for July 2007 with a filing rate of 1 in every 199 households and Georgia ranked #2 with 1 filing for every 299 households.
Nationwide, foreclosures rates for July 2007 increased 9% from June 2007 and a whopping 93% increase from July 2006. The truth is that for July 2007, the foreclosure rate nationally was 1 filing for every 693 households.
Are they stupid or are they lying? I don't know. But I do know that they are WRONG. The housing market is a national problem. It is affecting consumer confidence and it's only a matter of time before this lack of consumer confidence begins to affect other areas of the economy. Wake up America! The first step to solving a problem is admitting there is a problem!
All of these statistics according to http://www.realtytrac.com/.
To view a list of foreclosures rates nationwide by state please visit: http://www.realtytrac.com/ContentManagement/Library.aspx?ChannelID=9&ItemID=3221
Wednesday, October 10, 2007
Sunday, September 23, 2007
Save Our Constitution
When I started this blog, my intention was to blog about real estate, the business that I'm in. I will continue to blog about real estate, however, from time to time, I will diverge to other areas that I feel strongly about.
Last week, General Petraeus submitted a long awaited report to Congress about the progress of the war in Iraq. After this report, MoveOn.org placed a now infamous ad in the newspaper using a play on words questioning the political nature of the content of this report. Now, this blog is not intended to make any judgement of this ad, nor is it intended to take a political position on the war. This blog posting is intended to remind the American people that we have a Constitution that guides this country. Among other rights that our Constitution grants all Americans is the right to "free speech". This right allows all Americans to speak out about their beliefs and that includes the right to speak out against the Government.
This ad offended some, including George Bush. He spoke out against the ad (his right) and then the Republicans introduced a resolution in Congress condemning MoveOn.org and the ad. Our Congress actually took the time to debate this resolution and vote on it. Our Congress, Republicans and Democrats, actually passed this resolution.
How can the American people just accept this? Agree with MoveOn.org or not, can we at least agree that our Constitution grants them the right to their opinion? How can we not be outraged that our elected officials wasted time in introducing this resolution, wasted time debating this resolution and wasted time voting to pass this resolution. Considering this right to free speech, this resolution is unconstitutional and our Congress, our elected officials, have violated the Constitution that they have taken an oath to defend.
Think about this! Consider what's happening within our Government! Speak out (it's your right as an American). Take back our rights and Save Our Constitution!
Last week, General Petraeus submitted a long awaited report to Congress about the progress of the war in Iraq. After this report, MoveOn.org placed a now infamous ad in the newspaper using a play on words questioning the political nature of the content of this report. Now, this blog is not intended to make any judgement of this ad, nor is it intended to take a political position on the war. This blog posting is intended to remind the American people that we have a Constitution that guides this country. Among other rights that our Constitution grants all Americans is the right to "free speech". This right allows all Americans to speak out about their beliefs and that includes the right to speak out against the Government.
This ad offended some, including George Bush. He spoke out against the ad (his right) and then the Republicans introduced a resolution in Congress condemning MoveOn.org and the ad. Our Congress actually took the time to debate this resolution and vote on it. Our Congress, Republicans and Democrats, actually passed this resolution.
How can the American people just accept this? Agree with MoveOn.org or not, can we at least agree that our Constitution grants them the right to their opinion? How can we not be outraged that our elected officials wasted time in introducing this resolution, wasted time debating this resolution and wasted time voting to pass this resolution. Considering this right to free speech, this resolution is unconstitutional and our Congress, our elected officials, have violated the Constitution that they have taken an oath to defend.
Think about this! Consider what's happening within our Government! Speak out (it's your right as an American). Take back our rights and Save Our Constitution!
Tuesday, August 28, 2007
What is your house worth?
Frankly, the answer to this question is "what a buyer is willing to pay". I know this sounds blunt and it is, but it is also the truth. Yes, pricing your home near the comparables or below the comparables of the last sale in your neighborhood is the accepted practice in today's market, but ultimately the buyers are in control right now. They see the large inventory of homes available and they know this gives them choices and time to make their decision. That's why homes are staying on the market longer.
What's up with the market? It breaks down to 2 simple words.....Consumer Confidence!
A few years ago housing prices were climbing, people were excited about buying a home and getting in on the American Dream and were confident that their investment would continue to grow their equity. That didn't happen! There is a multitude of reasons this happened. Some say it's just a natural correction, some think sellers got too greedy with the continuing price increases (the desire to get more for their home than their neighbor got). Honestly, I don't think anyone could positively define what caused the slowdown and the price decreases.
However, we are where we are. Housing prices have declined. People have less equity in their homes. If they went in with adjustable mortgages thinking they would refinance later, they can't because their home has decreased in value. The least affect of this is they don't have equity to tap for other purchases. The extreme affect is that if they were counting on the ability to refinance to keep their home affordable, they may be in trouble. This is what is fueling the so called "mortgage meltdown".
Consumer confidence fuels pretty much everything in our economy. Without this confidence, people are less likely to make large purchases or use their credit cards. This starts to trickle down to other segments of the economy and we suffer a real, noticeable decline in spending. If people feel confident that they could fall back on the equity in their homes, they are more likely to spend. This confidence has eroded. The mortgage problems are just the beginning. We are already seeing less confidence in the stock market and we are likely to see more slowdowns in other areas of the economy. Auto purchases are likely to be next and then who knows.
The housing market is a major key element of our economy! It needs to be fixed (or at least stabilized) before we slide much further.
Comments are encouraged and welcome. I strongly believe a dialogue on this subject needs to happen.
What's up with the market? It breaks down to 2 simple words.....Consumer Confidence!
A few years ago housing prices were climbing, people were excited about buying a home and getting in on the American Dream and were confident that their investment would continue to grow their equity. That didn't happen! There is a multitude of reasons this happened. Some say it's just a natural correction, some think sellers got too greedy with the continuing price increases (the desire to get more for their home than their neighbor got). Honestly, I don't think anyone could positively define what caused the slowdown and the price decreases.
However, we are where we are. Housing prices have declined. People have less equity in their homes. If they went in with adjustable mortgages thinking they would refinance later, they can't because their home has decreased in value. The least affect of this is they don't have equity to tap for other purchases. The extreme affect is that if they were counting on the ability to refinance to keep their home affordable, they may be in trouble. This is what is fueling the so called "mortgage meltdown".
Consumer confidence fuels pretty much everything in our economy. Without this confidence, people are less likely to make large purchases or use their credit cards. This starts to trickle down to other segments of the economy and we suffer a real, noticeable decline in spending. If people feel confident that they could fall back on the equity in their homes, they are more likely to spend. This confidence has eroded. The mortgage problems are just the beginning. We are already seeing less confidence in the stock market and we are likely to see more slowdowns in other areas of the economy. Auto purchases are likely to be next and then who knows.
The housing market is a major key element of our economy! It needs to be fixed (or at least stabilized) before we slide much further.
Comments are encouraged and welcome. I strongly believe a dialogue on this subject needs to happen.
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