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Investing – The home prices fall in most major markets

If you have not owned a house, or any piece of real estate including residential condominiums, and vacation homes that you are aware of the price run-up that took place during a period of five years ago ended over a year. In terms of investment, owning a home for half a century has been a wonderful way to create wealth. It is one of the few investment methods where you can really live on their investment, while it increased in value. Most investors are unaware that World War II until last year, Never had a single year in which home prices fell nationwide, until last year it is.

Homeowners have enjoyed an annual increase constant in the price of the house where they lived to create a wealth effect. For many, their only source of forced saving. It was also a participation in the "dream American "- home ownership and live in it.

Studies are now available, showing that at the end of last year, a number of housing markets decreased. In fact, 149 different markets experienced the descent. Worst hit were the east and the west coast of the U.S., and cities in the Northeast.

In you're in Florida in the past year, it was impossible not to see thousands of super cranes go about the process of building 20-50 story condos. The vast majority of these condos were bought on speculation with the buyer signing the contract does not foresee the need to close the contract.

We have seen a number of gateways mass yet. These are people who have signed agreements not to resort to the manufacturer and are able to walk from the agreement without having to write a check. Be lost leaving the deposit however.

Florida could be the state having the most success in real estate. Sarasota fell by 18% by year end while in Melbourne is experiencing a 17% decline. We are talking about the actual prices being down. In a nationally prices fell 2.7%.

Many analysts have not discovered what this means? They are motivated sellers holding homes and waiting to get their higher price later? Are some sellers to withdraw their homes on the market, or perhaps does not put on the market at all, prices are expected to strengthen, perhaps later this year?

What about sales themselves?

In addition to prices being down, there are fewer actual sales taking place, which is leading to a higher inventory of unsold homes. Forty different states have reported a decrease in the number of sales that take place. Nationally the number reaches a decrease of 10.1% in the actual number of homes sold regardless of price. Three localities have reported physical sales being down over 30%. Including Nevada, Florida and the District of Columbia. Virginia reported a decrease of 20%.

There were six states reported an increase in the number of sales that take place – that is, six of the fifty. Including Alaska, Arkansas, Illinois, Kentucky, Mississippi and Texas. There was no impact on Utah, where sales remained stable.

What you really need to look at is the vacancy rate. The vacancy rate is the number of homes on the market in which nobody lives in them, and they are sold. Nationally, this number always seems to hover around 2%. At the end year, the number went to 2.7%. This is a massive increase due to 2.7% is the highest it has been in 50 years, and that's only because they began to find the number 50 years ago.

You owners out there who are waiting, and will not sell at a price below the price they want. This explains the higher vacancy rate. Beyond that is another problem. Sooner or later there comes a point where a seller can not sell. He will take what I can get, although it establishes a new lower base from which everything else can deal.

Once this base is established that other buyers and sellers to see it. The seller responds with alarm. The buyer responds with joy, but also fear because the buyer does not know if the prices go even lower. That's how it is selling panic, and there are no buyers. Shoppers walk, pending even lower price

It is the same as the stock market, sellers once they have seen higher prices, not sell at lower prices. Many prefer to wait, wait, and hope that the price again. Only the seller obligated to do the deal. It might be an agent, or divorce settlement, or resettlement housing that forces the actual sale. No matter, once the sale reaches the market for all to see, there is a new adjustment in the real estate market.

Where is the BIAS Now – Up or down?

It is difficult to say whether the year-end numbers have been removed secular excesses that have taken place in housing markets in the last five years, while everything went crazy on the upside. There may be more to go. If you look at the stock market, most home builders hit bottom a few months ago when all the facts new multi-year lows. Since then, they have expressed very well. If the real estate market has only to go down, that these populations probably have to create two funds before the fall is over.

However, if the vacancy rate takes from here, and falling prices have seen their bottom, that most of the damage is behind us. The global economy and interest rates seem fine, so do not expect the damage from a decline in GDP this year. What seems to be happening is that this is an excessive wear produced since the late 1990s in the housing sector in this country?

The geographical segments of the country that experienced the largest price increases real estate are experiencing declines. It's the same story, and the story never changes, only the parts of the country concerned is changed. Our work shows that prices and vacancy rates have a way to go even lower. At the same time, we believe that the housing stock may decrease, but the total funds provided are expected for months. We're out of those funds.

Goodbye and good luck

Richard Stoyeck

ABC World News Tonight – Report on Discount Real Estate Brokers: FlatFeeMLSDirect.com-RealMartRealty

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