Friday, August 31, 2007

Better news turns the "crisis" back into a "problem"

Of course if you're in foreclosure, or have a loan that's about to adjust, then it's still a crisis for you.

But yesterday, The President actually made a speech that I was able to listen to. Ben Bernacke, the Fed Chairman also spoke at an economic summit. Both speeches calmed a lot of nerves on wall street and in the credit markets. The fed is prepared to act if the housing problem starts to effect the overall economy. The President is urging leniency from the lenders, and actually proposed one of the things that I've touted, which is changing the tax code so that forgiven debt doesn't become current income.

We're seeing more FHA and VA loans. The buyers who were sitting on their hands waiting to try to "time the market" are suddenly worried about not being able to get a loan. I think that buyers coming back into the market, lowering of rates, frustrated sellers coming off the market, will start to reduce the inventory, and create the bottom.

Since I don't think we're going to have any "flip" buyers, (except for the extreme fixer uppers) there's opportunities to get into properties at prices that haven't been seen in several years. Out in the suburbs, we're back to 2005 prices for the bank owned and pre-foreclosure properties.

In Vintage Vegas, prices are holding up pretty well due to the growing demand for "location location location" and all the great reasons that exist to live in the Urban Core.

Vintage Vegas only represents about 5% of all the homes in all of Las Vegas. Many of the 80's and 90's suburban neighborhoods are starting to look beat up. Vintage Vegas is improving everyday. I don't know anyone who doesn't believe that the URBAN CORE is going to have the best price appreciation in the coming years.

So, the bottom line is....if you can get a loan now, NOW is the time to start the process, while the inventory is at it's best I've ever seen. There's terrific great vintage homes that deserve top dollar, and will always be the first to be snatched up, and there's ton's of bargains from distressed homeowners and banks. The undiscovered cool neighborhoods are full of opportunity to make money.

And Believe me on this, the markets are cyclical, Vegas is STILL Vegas, people are still moving here, jobs are being created and there's STILL a shortage of land to build on.

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