Economy Archives - Page 4 of 40

Populations Shift in Last Decade

My town grew from 18,000 to over 32,000 in 10 years – a 74 percent jump from 2000 to 2010. Other towns had been U.S. super cities, but the last five years have been brutal to them, Las Vegas and Orlando particularly. Today they top the Forbes list of emptiest cities in the country,

Then the economy went into recession, vacationers stopped going to Disney World, and financing evaporated for developers and buyers alike. Result: More than one-fifth of Orlando’s rental units are vacant, landing it the top spot on Forbes’ list of America’s Emptiest Cities.

Making this dubious list is Dayton, Las Vegas, Memphis, and Riverside-San Bernardino, Calif. While we have some vacant houses in my local neighborhoods, we are fortunate that middle Tennessee has not suffered like other parts of the country.

Shares 0

Single Woman Seeks Home

by Kathy T. Leave a Comment

Women accounted for 21 percent of all homes purchased in the U.S. in 2010. That amazing number should get the attention of home owners as they stage their houses, as well as lenders and real estate agents as they plan their marketing strategies for 2011.

Meanwhile, Marilyn Kennedy Melia write tips for the single female home buyer on bankrate.com. She says,

… owning a home can help women enter a more secure retirement if they pay down their loan balance over time. “You shouldn’t think of a home as an investment that will make you rich,” Aiken says. “But if you buy a home that you can afford to pay off, maintain and live in over a long period of time, you’ll have a low-cost place to live in retirement.”

Melia also stresses that a female buyer should shop aggressively for a home loan and also expect the seller to pitch in to help with closing costs and any allowable down payment assistance.

Photo by Nina Matthews Photography via Flickr Creative Commons.

Shares 0

We Should Rally Around Detroit

by Kathy T. Leave a Comment

Detroit has perhaps some of the most beautiful architecture in the United States. There are soaring roof lines, stunning details, and decay. The poor town has lost thousands and thousands of residents, so some of the most gorgeous homes are sitting empty … slowly succumbing to the forces of nature.

It would be so nice if investors could figure out how to restore this dying city. Reclaimed Homes has some thoughts on Detroit and I can’t say they’re wrong,

As an historic building enthusiast, I’d like to see these structures saved. As an environmentalist, I say let nature take it back. We’re always tearing down trees and destroying natural habitats. Well, let the city become a forest. It’s been abandoned anyway.

There are so many dying towns in America right now. I suppose it’s like the ghost towns of the old Wild West, only it’s the Wild Midwest, Wild South, Wild Northeast, etc.

Shares 0

Home Prices Expected to Drop

by Kathy T. Leave a Comment

The general public expects homes prices to drop. Real estate agents expect home prices to drop. Lenders expect prices to drop. We know appraisers believe home prices are dropping! It seems the only people who might not expect it are the sellers.

However, the proof is in the pudding. A survey completed by Gallup Polls and published by 24/7 Wall Street show that homes could drop between 7- and 10-percent this year. Further,

The research shows that 67% of Americans feel now is a “good time” to buy a house — similar to the 72% of April 2010 and the 71% of April 2009. The findings, from a Gallup poll conducted Jan. 7-9, 2011, suggest Americans are holding on to perceptions of a buyer’s market despite the challenges of securing financing and observers’ concerns about the potential for a housing “double-dip.”

The article stated that, “Americans like the idea of buying a home, but like is as far as it gets.” If we can get a surge in consumer confidence, we’ll be on easy-peasy street. Unfortunately with gas prices climbing again, the time is ripe for the double-dip.

Shares 0

Just When You Thought They Wouldn’t Go Lower

by Kathy T. Leave a Comment

Mortgage rates have dropped to the lowest level they’ve been in decades, thanks to he announcement from the Federal Reserve about a massive bond-buying program. The program is designed to spur economic growth because as the Feds buy more bonds, it will mean extra demand which will mean lower yields. According to the AP article published on Comcast news, “Mortgage rates tend to track those yields.”

Mortgage buyer Freddie Mac said Tuesday the average rate for 30-year fixed loans fell to 4.17 percent from 4.24 percent last week. That’s the lowest on records dating back to 1971.

The average rate on 15-year fixed loans fell to 3.57 percent from 3.63 percent. That’s the lowest since the survey began in 1991.

Eligible buyers are sitting on the sidelines of the housing market, worried primarily about job security. In my own household we have suffered job loss of the primary bread-winner, but when things turn around (which I am 100 percent confident they will), we plan to refinance to take advantage of these amazing rates.

Shares 0

Top Cities Have Safe Neighborhoods

by Kathy T. Leave a Comment

Whether you live in a stigmatized community with a reputation for gang violence, heavy industry, or trashy bad looks, there may be pockets of really nice neighborhoods that people call home.

WalletPop has a listing of some of the safest neighborhoods in America’s Best Cities.

… the data show Los Angeles is home to the safest big city neighborhood in America, which is safer than 98% of all U.S. neighborhoods, from the smallest towns to the biggest cities. Fort Worth is home to the second safest big city neighborhood in America, safer than 93% of all U.S. neighborhoods. Surprisingly, many of the neighborhoods they discovered are substantially safer than neighborhoods in the suburbs.

While you’re reading about the safest place to live in Las Vegas (Baskin Park fyi), check out this article about people who live in tunnels underneath the city from London’s Daily Mail,

They have been there for five years, fashioning a shower out of a water cooler, hanging paintings on the walls and collating a library from abandoned books.

Their possessions, however, are carefully placed in plastic crates to stop them getting soaked by the noxious water pooling on the floor.

Again, read the whole article and look at the photos. Pretty amazing.

Shares 0

The Zillow Effect on Consumer Confidence

by Kathy T. Leave a Comment

I love me some Zillow.com. It provides some valuable assessment tools on what the housing market is like across the country – it even drills down to little pockets of rural America. However, it can also be a very frightening thing for consumers to look at when it’s their only source of estimating the value of their home,

Every 3 or 6 months, I decide to do a quick review of my net worth. Yesterday was my first look in 6 months. Though personal finance gurus are divded on the subject, I consider the equity in my home as part of my net worth. And my net worth took a big hit. Over the last five years, I’ve become accustomed to the drop. After all, I’ve seen it go from the $287K price I paid to $240 in that time. This time the Zillow estimate was… $193K… Ouch!

If you want an accurate assessment of the fair market value of your home, contact your real estate agent. They will have neighborhood by neighborhood information rather than just city-wide info available. They will also be able to tell if homes move quickly because of how rare they sell AND if your upgrades will add value.

Good luck!

Shares 0

Mortgage Rates Remain Low

by Kathy T. 1 Comment

Freddie Mac reports that mortgage rates continue to remain low,

According to Freddie Mac, loan averages were mostly unchanged this past week as chief economist Frank Nothaft said “the perception of slow growth and low inflation removed any upward pressure on fixed mortgage rates this week.” The 30-year fixed rate averaged 4.37 percent for the week ended Sept. 23, flat with the previous week. Meanwhile, rates for 15-year fixed loans also were steady at 3.82 percent, the lowest since Freddie Mac started tracking it 19 years ago.

My lender friends say that business has not increased significantly in the last few months, but we will be hearing soon from a housing trend tracker who is predicting that in the second quarter of 2011, things will pick up again. When houses start selling, rates will increase so now is the best time to take advantage of low rates.

Source: Tennessee Association of Realtors.

Photo by Diana Parkhouse via flickr creative commons.

Shares 0

Housing Gropes for a Bottom

by Kathy T. Leave a Comment

While many of us thought the housing market had hit the bottom at this time last year, this third year of surviving the harshness of this market is taking a toll on real estate agents. Just yesterday a site listed real estate as one of the worst jobs – and possibly nonrecoverable industries – in the nation today. Other industries included construction and newspapers.

While these jobs are in serious jeopardy, there was good news on the mortgage front. Although MSNBC reports that the pace of home buying has risen, perhaps the headline should be that mortgages refinances have increased.

Lower borrowing costs should translate into more consumer spending but the economic impact would be greater if more home owners met the criteria.

“Lower interest rates have spurred another round of refinancing activity and that should bode well for consumption spending,” said Michael Gapen, senior U.S. economist at Barclays Capital in New York.

“Longer term, however, the housing market still faces significant headwinds and one of those main headwinds is the fact that not every homeowner can access these lower mortgage rates,” he added.

That people are no longer qualified to refinance is definitely one of the biggest impacts on the lending industry (along with the housing market). What do you predict? How long will the housing recession continue? A few months? Year? Several years?

Shares 0

A House of Cupcakes

by Kathy T. Leave a Comment

Many people in the real estate business are looking for other opportunities to supplement their incomes while the housing market is down. From making soap and selling it at a local market (also operated by a real estate agent) to painting rooms and laying tile, agents are staying busy, but perhaps not with real estate 100 percent of the time.

So the conundrum is what to do when the market is on a slow (albeit VERY slow) recovery, but an opportunity in the form of an idea begins to germinate. An idea that could potentially do very well, but it could take as long to come to fruition as it would for real estate co completely recover… one to five years.

The advice I would give to anyone is what a friend told a friend on Facebook. First she suggested that the potential new business owner contact someone else with a similar business to gain a realistic understanding of what the costs would be. Then,

If she decides she still wants to pursue the business, she shouldn’t do it without first contacting an accountant and a lawyer (even though it will cost her more up front to do so). I hate to sound pessimistic, but people are constantly encouraged to pursue their dreams and turn their hobbies into businesses. While this is wonderful in theory, the fact of the matter is that more than 50% of small businesses fail in the first year and 95% of them fail within the first five years. People invest their life savings pursuing their dreams and, more often than not, they lose everything. That’s the sad reality.

So I’m not suggesting that she shouldn’t research the business, but she needs to go into this with her eyes wide open and if she doesn’t have a strong financial/accounting background, she needs to seek professional advice right from the start.

Good advice. Do you have a dream business you’d like to pursue? Mine would be the House of Cupcakes, but I believe the best way to start this would be on a part-time basis to see if the demand is there.

Shares 0

« Previous Page