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Answer Upon - What's Happening In Real Estate Right Now And Where Is It Going?
The difference between success and failure in either an internet marketing business or a MLM is the ability of you to be able to attract people to you.Most of us, in order to grow our businesses, are doing what most successful MLM’ers and internet marketers do. We purchase traffic, websites, email blasts, and the like to grow our business.Of course this works and most successful people will tell you that they have use those strategies to build their business, but here is another idea.What if you could get 5-10 serious MLM’ers, or internet marketers to call you each and everyday?People that are already familiar with your business, you, and are familiar with your reputation, and THEY are CALLING YOU, instead of the other way around.This is the concept behind Attraction Marketing. People learn about you, research your opportunity or your background, and then they call you because they are interested in learning to work with you.This concept has much more to do with you as a person, and as a leader, than it does with the company or the product that you are representing.People want to know that the person that they are speaking with is a leader, and can truly help them in their business.Let me give you an example.Let’s say you wanted to learn how to play basketball. You could have anybody you wanted to train you.Would you pick your old high school coach or would
The Center for Responsible Lending estimates that as many as 20% of the subprime mortgages made in the last 2 years could go into foreclosure. This amounts to about 5% of the total homes sold coming back on the market at "fire-sales". Even if only 1/2 of that actually comes back on the market, it would cause overall valuations to go down and the ability to get home mortgage equity loans to decrease further.
Prepare yourself now because you can still get great advice from the eBook. Buy it with this secure link: https://shop.outstandingebooks.com/displayProductDocument.hg?productId=1
5. Yield Curve is still inverted!
The yield curve is still inverted. In a normal market, you get more interest (yield) for longer term investments. But very rarely the short-term rates become higher than long term rates such as now.
History has shown that an inverted yield curve is the best indicator of a future recession. The yield curve has been inverted since last fall, and if history is any judge we should be in a recession by the 3rd quarter of 2007. Throughout history, we have never had an inverted yield curve without a recession within the next 4 quarters.
The inverted yield curve does not cause the recession, it is simply a signal that something is out of whack in the economy.
6. What this means to you
One of two things could happen going forward in the real estate market: real estate prices will go up or they will go down. History has shown us that any asset that runs up, must come down, whether we are talking about the Dutch Tulip Market, the stock market bubble, the gold bubble of the early 1980s, or Japan's run-up in housing in the 1980's and subsequent 15 year decrease in values.
The big picture of the real estate market is that it goes up and down in cycles. It has been in an up cycle for
Since the introduction of the Internet in the mid 1990’s, it has only transformed each and every year. Sometimes it seems as though technology is changing on a daily basis and with that the Internet has to change as well! Ecommerce trends in 2007 will only increase as well. Below are my top 5 things to watch for in 2007 online.1. Increase uses of online talking. From telephone chats (via Skype) to various advances in IM.2. Blogging, VideoBlogging, will increase with new technology that comes out. Better quality cameras are being designed and this will provide better quality Videobloggs.3. New forms of photo software will be made available. Digital cameras provide a new wave of communication and new photo software is being created to enhance the quality of the pictures that are being sent.4. Gaming is a huge part of the online community. Coming in 2007 better graphics, more life like action, more details, better sound cards, as well as more games that can be played online.5. Music downloads. People love to use MP3 players, IPod etc. These devices give way to movie and music downloads. Increasing the technology to hold more movies and music on these is being improved every day. Music downloads are increasing popular.These Ecommerce trends are only going to increase in usage in 2007 and business know that. Because of the high demand for better quality new technology is being developed ever
2. Update On Gold
3. Real Estate Prices In South Florida
4. Real Estate Nationwide
5. Yield Curve Is Still Inverted
6. What this means to you
1. Analysis of today's market
As an analyst of the economy and the real estate market, one must be patient to see what unfolds and to see if one's predictions are right or wrong. One never knows if they will be right or wrong, but they must have a sense of humility about it so that they are not blind to the reality of the marketplace.
In March of 2006, my eBook How To Prosper In the Changing Real Estate Marketplace. Protect Yourself From The Bubble Now! stated that in short order the real estate market would slow down dramatically and become a real drag on the economy. We are experiencing this slowdown currently and the economy I feel is not far from slowing down as well. History has repeatedly shown that a slow down in the real estate market and construction market has almost always led to an economic recession throughout America's history.
Let's look at what is happening in the following areas to see what we can gleam from them: Gold, Real Estate in South Florida, Real Estate Nationwide, Yield Curve/Economy and see what this means to you:
2. Gold
If you have read this newsletter and/or the eBook, you know I am a big fan of investing in gold. Why? Because I believe that the US dollar is in serious financial peril. But gold has also risen against all of the world's currencies, not just the US dollar.
Why has gold risen? Gold is a neutral form of currency, it can't be printed by a government and thus it is a long term hedge against currency devaluation. James Burton, Chief Executive of the Gold Council, recently said: "Gold remains a very important reserve asset for central banks since it is the only reserve asset that is no one's liability. It is thus a defense against unknown contingencies. It is a long-term inflation hedge and also a proven dollar hedge while it has good diversification properties for a central bank's reserve asset portfolio."
I agree with Mr. Burton 100%. I believe we will even see a bubble in gold again and that is why I have invested in gold to profit from this potential bubble (Think real estate prices around the year 2002 - wouldn't you like to have bought more real estate back then?)
I had previously recommended that you buy gold when it was between $580 and $600 an ounce. Currently, gold is trading at around $670 an ounce up more than 10% from the levels I recommended. However, gold has some serious technical resistance at the $670 level and if it fails to break out through that level it might go down in the short-term. If it does go down again to the $620 - $640 level, I like it at these levels as a buy. I believe that gold will go to $800 an ounce before the end of 2007.
3. Real Estate in South Florida
Real estate in South Florida has been hit hard by this slowdown as it was one of the largest advancers during the housing boom. The combination of rising homes for sale on the market, the amazing amount of construction occurring in the area and higher interest rates have been three of the major factors of the slowdown.
For every home that sold in the South Florida area in 2006, an average of 14 did not sell according to the Multiple Listing Service (MLS) data. The number of homes available for sale on the market doubled to around 66,000, as sales slowed to their lowest level in 10 years.
Even though home prices were up for the year of 2006, the average asking price for homes in December was down about 13 percent compared to a year ago. From 2001 to 2005, the price of a single-family home in Miami-Dade increased 120 percent to $351,200. This is also similar to what happened in Broward County. The problem is that wages during that time only increased by 17.6% in Miami-Dade, and 15.9% in Broward, according to federal data. This is the other major factor that is contributing to the slowdown - real estate prices far outpaced incomes of potential buyers of these homes.
Another factor that helped drive the South Florida boom in prices was high growth in population in Florida. From 2002 to 2005, more than a million new residents moved to Florida and Florida also added more jobs than any other state. However, the three largest moving companies reported that 2006 was the first time in years that they had moved more people out of the state of Florida than into it. Also, school enrollment is declining which could be another sign that middle-class families are leaving.
By far though, the area of South Florida real estate that will be hit hardest is and will continue to be the condominium market. Due to their lower prices than homes, condos make financial sense in the South Florida area. However, the supply of available condos has tripled over the past year and it will get worse before it gets better. More than 11,500 new condos are expected this year and 15,000 next year with the majority of them being built in Miami.
As a result of the oversupply, asking prices for condos are down 12% in 2006 in Miami to $532,000. And incentives are substituting for price cuts. These incentives include paying all closing costs to free upgrades and more.
The last point to think about affecting South Florida real estate is the escalating costs of property insurance and property taxes. These increasing costs are putting more downward pressure on real estate prices.
My strong belief is that we are only starting to see the slowdown of the South Florida real estate market and that prices will continue to fall. Due to the fact that many real estate investors are pulling out, where are the next wave of buyers going to come from at these current prices? Unless a serious influx of new, high paying jobs enter the South Florida area, real estate prices, just like any asset that falls out of favor after a large runup only have one way to go... down.
4. Real Estate Nationwide
A report released last week from the National Association of Realtors showed that in the last three months of 2006 home sales fell in 40 states and median home prices dropped in nearly half of the metropolitan areas surveyed. The median price of a previously owned, single family home fell in 73 of the 149 metropolitan areas surveyed in the 4th quarter.
The National Association of Realtors report also said that the states with the biggest declines in the number of sales in October through December compared with the same period in 2005 were:
* Nevada: -36.1% in sales
* Florida: -30.8% in sales
* Arizona: -26.9% in sales
* California: -21.3% in sales
Nationally, sales declined by 10.1% in the 4th quarter compared with the same period a year ago. And the national median price fell to $219,300, down 2.7% from the 4th quarter of 2005.
Slower sales and cancellations of existing orders have caused the number of unsold homes to really increase. The supply of homes at 2006 sales rate averaged 6.4 months worth which was up from 4.4 months worth in 2005 and only 4 months worth in 2004.
Toll Brothers, Inc., the largest US luxury home builder, reported a 33% drop in orders during the quarter ending January 31.
Perhaps most importantly, falling home values will further decrease their use of mortgage equity withdrawal loans. In 2006, mortgage equity withdrawal accounted for 2% of GDP growth. Construction added 1% to last years GDP growth, so the importance of these factors are to the health of the US economy are enormous.
The other concern is sub-prime mortgages. Today, sub-prime mortgages amount to 25% of all mortgages, around $665 billion. Add to this the fact that approximately $1 trillion in adjustable-rate mortgages are eligible to be reset in the next two years and we will continue to see rising foreclosures. For example, foreclosures are up five times in Denver. These foreclosed homes come back onto the market and depress real estate values.
The Center for Responsible Lending estimates that as many as 20% of the subprime mortgages made in the last 2 years could go into foreclosure. This amounts to about 5% of the total homes sold coming back on the market at "fire-sales". Even if only 1/2 of that actually comes back on the market, it would cause overall valuations to go down and the ability to get home mortgage equity loans to decrease further.
Prepare yourself now because you can still get great advice from the eBook. Buy it with this secure link: https://shop.outstandingebooks.com/displayProductDocument.hg?productId=1
5. Yield Curve is still inverted!
The yield curve is still inverted. In a normal market, you get more interest (yield) for longer term investments. But very rarely the short-term rates become higher than long term rates such as now.
History has shown that an inverted yield curve is the best indicator of a future recession. The yield curve has been inverted since last fall, and if history is any judge we should be in a recession by the 3rd quarter of 2007. Throughout history, we have never had an inverted yield curve without a recession within the next 4 quarters.
The inverted yield curve does not cause the recession, it is simply a signal that something is out of whack in the economy.
6. What this means to you
One of two things could happen going forward in the real estate market: real estate prices will go up or they will go down. History has shown us that any asset that runs up, must come down, whether we are talking about the Dutch Tulip Market, the stock market bubble, the gold bubble of the early 1980s, or Japan's run-up in housing in the 1980's and subsequent 15 year decrease in values.
The big picture of the real estate market is that it goes up and down in cycles. It has been in an up cycle for
Several years ago, I was doing the night shift in a gasoline service convenience store. I was working with another clerk. It was that sleepy time of the morning between 4:30 and 5:30. This is the time of the night shift where you are most likely to fall asleep or micro nap on your feet. It was also a quiet time for customers when the produce and cold drink cooler could be restocked. The temperature inside was usually just above forty degrees. I hoped that the cold inside would help me wake up.The cooler was divided into a milk section on the far right. Then came juice to the left. In the middle was a small meat and cheese section. Left of the produce was a sports drink section. Last of all on the far left was the soft drink section. First, I started filling up the milk section which had various sizes to be filled. The plastic crates holding four of the large size of milk are quite heavy to move. After filling the milk section up the remaining crates were restacked and the empty crates were removed.Moving on to the juice section was faster. I could grab glass juice containers from a storage shelf and restock the display. Sometimes condensation that formed on the glass bottles of juice. That must have happened again. While lifting a small bottle of juice up to place it on an upper shelf the bottle slipped from my hand. In a split second, I knew that cleaning up the juice and broken glass on the flo
I agree with Mr. Burton 100%. I believe we will even see a bubble in gold again and that is why I have invested in gold to profit from this potential bubble (Think real estate prices around the year 2002 - wouldn't you like to have bought more real estate back then?)
I had previously recommended that you buy gold when it was between $580 and $600 an ounce. Currently, gold is trading at around $670 an ounce up more than 10% from the levels I recommended. However, gold has some serious technical resistance at the $670 level and if it fails to break out through that level it might go down in the short-term. If it does go down again to the $620 - $640 level, I like it at these levels as a buy. I believe that gold will go to $800 an ounce before the end of 2007.
3. Real Estate in South Florida
Real estate in South Florida has been hit hard by this slowdown as it was one of the largest advancers during the housing boom. The combination of rising homes for sale on the market, the amazing amount of construction occurring in the area and higher interest rates have been three of the major factors of the slowdown.
For every home that sold in the South Florida area in 2006, an average of 14 did not sell according to the Multiple Listing Service (MLS) data. The number of homes available for sale on the market doubled to around 66,000, as sales slowed to their lowest level in 10 years.
Even though home prices were up for the year of 2006, the average asking price for homes in December was down about 13 percent compared to a year ago. From 2001 to 2005, the price of a single-family home in Miami-Dade increased 120 percent to $351,200. This is also similar to what happened in Broward County. The problem is that wages during that time only increased by 17.6% in Miami-Dade, and 15.9% in Broward, according to federal data. This is the other major factor that is contributing to the slowdown - real estate prices far outpaced incomes of potential buyers of these homes.
Another factor that helped drive the South Florida boom in prices was high growth in population in Florida. From 2002 to 2005, more than a million new residents moved to Florida and Florida also added more jobs than any other state. However, the three largest moving companies reported that 2006 was the first time in years that they had moved more people out of the state of Florida than into it. Also, school enrollment is declining which could be another sign that middle-class families are leaving.
By far though, the area of South Florida real estate that will be hit hardest is and will continue to be the condominium market. Due to their lower prices than homes, condos make financial sense in the South Florida area. However, the supply of available condos has tripled over the past year and it will get worse before it gets better. More than 11,500 new condos are expected this year and 15,000 next year with the majority of them being built in Miami.
As a result of the oversupply, asking prices for condos are down 12% in 2006 in Miami to $532,000. And incentives are substituting for price cuts. These incentives include paying all closing costs to free upgrades and more.
The last point to think about affecting South Florida real estate is the escalating costs of property insurance and property taxes. These increasing costs are putting more downward pressure on real estate prices.
My strong belief is that we are only starting to see the slowdown of the South Florida real estate market and that prices will continue to fall. Due to the fact that many real estate investors are pulling out, where are the next wave of buyers going to come from at these current prices? Unless a serious influx of new, high paying jobs enter the South Florida area, real estate prices, just like any asset that falls out of favor after a large runup only have one way to go... down.
4. Real Estate Nationwide
A report released last week from the National Association of Realtors showed that in the last three months of 2006 home sales fell in 40 states and median home prices dropped in nearly half of the metropolitan areas surveyed. The median price of a previously owned, single family home fell in 73 of the 149 metropolitan areas surveyed in the 4th quarter.
The National Association of Realtors report also said that the states with the biggest declines in the number of sales in October through December compared with the same period in 2005 were:
* Nevada: -36.1% in sales
* Florida: -30.8% in sales
* Arizona: -26.9% in sales
* California: -21.3% in sales
Nationally, sales declined by 10.1% in the 4th quarter compared with the same period a year ago. And the national median price fell to $219,300, down 2.7% from the 4th quarter of 2005.
Slower sales and cancellations of existing orders have caused the number of unsold homes to really increase. The supply of homes at 2006 sales rate averaged 6.4 months worth which was up from 4.4 months worth in 2005 and only 4 months worth in 2004.
Toll Brothers, Inc., the largest US luxury home builder, reported a 33% drop in orders during the quarter ending January 31.
Perhaps most importantly, falling home values will further decrease their use of mortgage equity withdrawal loans. In 2006, mortgage equity withdrawal accounted for 2% of GDP growth. Construction added 1% to last years GDP growth, so the importance of these factors are to the health of the US economy are enormous.
The other concern is sub-prime mortgages. Today, sub-prime mortgages amount to 25% of all mortgages, around $665 billion. Add to this the fact that approximately $1 trillion in adjustable-rate mortgages are eligible to be reset in the next two years and we will continue to see rising foreclosures. For example, foreclosures are up five times in Denver. These foreclosed homes come back onto the market and depress real estate values.
The Center for Responsible Lending estimates that as many as 20% of the subprime mortgages made in the last 2 years could go into foreclosure. This amounts to about 5% of the total homes sold coming back on the market at "fire-sales". Even if only 1/2 of that actually comes back on the market, it would cause overall valuations to go down and the ability to get home mortgage equity loans to decrease further.
Prepare yourself now because you can still get great advice from the eBook. Buy it with this secure link: https://shop.outstandingebooks.com/displayProductDocument.hg?productId=1
5. Yield Curve is still inverted!
The yield curve is still inverted. In a normal market, you get more interest (yield) for longer term investments. But very rarely the short-term rates become higher than long term rates such as now.
History has shown that an inverted yield curve is the best indicator of a future recession. The yield curve has been inverted since last fall, and if history is any judge we should be in a recession by the 3rd quarter of 2007. Throughout history, we have never had an inverted yield curve without a recession within the next 4 quarters.
The inverted yield curve does not cause the recession, it is simply a signal that something is out of whack in the economy.
6. What this means to you
One of two things could happen going forward in the real estate market: real estate prices will go up or they will go down. History has shown us that any asset that runs up, must come down, whether we are talking about the Dutch Tulip Market, the stock market bubble, the gold bubble of the early 1980s, or Japan's run-up in housing in the 1980's and subsequent 15 year decrease in values.
The big picture of the real estate market is that it goes up and down in cycles. It has been in an up cycle for
The 2006 Year of the Dog, the 11th gold coin in The Perth Mint’s 12-coin Lunar Series, has been released and is now immediately available for delivery. Officially, however, the Year of the Dog does not begin until January 29, 2006, and it runs until February 17, 2007.The Perth Mint Lunar Series gold coins come in eight sizes: 1-kilo, 10-oz, 2-oz, 1-oz, ?-oz, ?-oz, 1/10-oz, and 1/20-oz, with monetary denominations of $3000, $1000, $200, $100, $50, $25, $15, and $5 respectively. An image of Her Majesty Queen Elizabeth II graces the obverse; the reverse carries the image of a beagle. The 1-oz ounce ($100) is by far the most popular of the Lunar Series gold coins.The silver coins in the Lunar Series come in seven sizes: 1-kilo, ?-kilo, 10-oz, 5-oz, 2-oz, 1-oz, and 1/20-oz, with monetary denominations of $30, $15, $10, $8, $2, $1, and 50 cents respectively. As with the gold coins in the Series, the obverse of the silver coins bears a likeness of Her Majesty Queen Elizabeth II. However, the reverse of the silver coins carries the image of a German shepherd.Perth Mint Lunar Series: Popular with coin collectors worldwideThe one-ounce gold coins in the Lunar Series have become immensely popular with coin collectors worldwide for several reasons. Although the theme is not unique—other mints having done lunar series during earlier lunar cycles—timing seems to be perfe
Another factor that helped drive the South Florida boom in prices was high growth in population in Florida. From 2002 to 2005, more than a million new residents moved to Florida and Florida also added more jobs than any other state. However, the three largest moving companies reported that 2006 was the first time in years that they had moved more people out of the state of Florida than into it. Also, school enrollment is declining which could be another sign that middle-class families are leaving.
By far though, the area of South Florida real estate that will be hit hardest is and will continue to be the condominium market. Due to their lower prices than homes, condos make financial sense in the South Florida area. However, the supply of available condos has tripled over the past year and it will get worse before it gets better. More than 11,500 new condos are expected this year and 15,000 next year with the majority of them being built in Miami.
As a result of the oversupply, asking prices for condos are down 12% in 2006 in Miami to $532,000. And incentives are substituting for price cuts. These incentives include paying all closing costs to free upgrades and more.
The last point to think about affecting South Florida real estate is the escalating costs of property insurance and property taxes. These increasing costs are putting more downward pressure on real estate prices.
My strong belief is that we are only starting to see the slowdown of the South Florida real estate market and that prices will continue to fall. Due to the fact that many real estate investors are pulling out, where are the next wave of buyers going to come from at these current prices? Unless a serious influx of new, high paying jobs enter the South Florida area, real estate prices, just like any asset that falls out of favor after a large runup only have one way to go... down.
4. Real Estate Nationwide
A report released last week from the National Association of Realtors showed that in the last three months of 2006 home sales fell in 40 states and median home prices dropped in nearly half of the metropolitan areas surveyed. The median price of a previously owned, single family home fell in 73 of the 149 metropolitan areas surveyed in the 4th quarter.
The National Association of Realtors report also said that the states with the biggest declines in the number of sales in October through December compared with the same period in 2005 were:
* Nevada: -36.1% in sales
* Florida: -30.8% in sales
* Arizona: -26.9% in sales
* California: -21.3% in sales
Nationally, sales declined by 10.1% in the 4th quarter compared with the same period a year ago. And the national median price fell to $219,300, down 2.7% from the 4th quarter of 2005.
Slower sales and cancellations of existing orders have caused the number of unsold homes to really increase. The supply of homes at 2006 sales rate averaged 6.4 months worth which was up from 4.4 months worth in 2005 and only 4 months worth in 2004.
Toll Brothers, Inc., the largest US luxury home builder, reported a 33% drop in orders during the quarter ending January 31.
Perhaps most importantly, falling home values will further decrease their use of mortgage equity withdrawal loans. In 2006, mortgage equity withdrawal accounted for 2% of GDP growth. Construction added 1% to last years GDP growth, so the importance of these factors are to the health of the US economy are enormous.
The other concern is sub-prime mortgages. Today, sub-prime mortgages amount to 25% of all mortgages, around $665 billion. Add to this the fact that approximately $1 trillion in adjustable-rate mortgages are eligible to be reset in the next two years and we will continue to see rising foreclosures. For example, foreclosures are up five times in Denver. These foreclosed homes come back onto the market and depress real estate values.
The Center for Responsible Lending estimates that as many as 20% of the subprime mortgages made in the last 2 years could go into foreclosure. This amounts to about 5% of the total homes sold coming back on the market at "fire-sales". Even if only 1/2 of that actually comes back on the market, it would cause overall valuations to go down and the ability to get home mortgage equity loans to decrease further.
Prepare yourself now because you can still get great advice from the eBook. Buy it with this secure link: https://shop.outstandingebooks.com/displayProductDocument.hg?productId=1
5. Yield Curve is still inverted!
The yield curve is still inverted. In a normal market, you get more interest (yield) for longer term investments. But very rarely the short-term rates become higher than long term rates such as now.
History has shown that an inverted yield curve is the best indicator of a future recession. The yield curve has been inverted since last fall, and if history is any judge we should be in a recession by the 3rd quarter of 2007. Throughout history, we have never had an inverted yield curve without a recession within the next 4 quarters.
The inverted yield curve does not cause the recession, it is simply a signal that something is out of whack in the economy.
6. What this means to you
One of two things could happen going forward in the real estate market: real estate prices will go up or they will go down. History has shown us that any asset that runs up, must come down, whether we are talking about the Dutch Tulip Market, the stock market bubble, the gold bubble of the early 1980s, or Japan's run-up in housing in the 1980's and subsequent 15 year decrease in values.
The big picture of the real estate market is that it goes up and down in cycles. It has been in an up cycle for
Today Internet has over 36,000,000 web sites, and statistics says that most of these web sites are DEAD - they do not get targeted web site traffic. Only targeted visitors give real online life to web site, and only targeted visitors can be converted into real profits on the web site. That is why those who understand the value of targeted traffic, fight for it every day, and this fight is getting wilder and wilder.But fighting for targeted web site traffic without the knowledge of winning traffic-building strategies is a blind fight. You may waste your time, money and nerves and never see targeted visitors on your web site.No it is time to face problems at full arms - you get the most powerful weapon in the history - professional knowledge how to drive and increase free targeted web site traffic for any online business.The best knowledge is the knowledge that already proved its effectivity. That is why this article will show you the techniques and strategies that are used by famous Internet marketing gurus: Joe Vitale, Yanik Silver, John Reese, Dan Kennedy, Jeff Mulligan, Terry Dean and others. These people made millions on Internet marketing and you can follow the best of their experience.Today, there is a bundle of time-proven strategies that help to increase targeted web site traffic and convert it into more online sales.1. Get top joint-venture partners and affiliates from your niche wh
4. Real Estate Nationwide
A report released last week from the National Association of Realtors showed that in the last three months of 2006 home sales fell in 40 states and median home prices dropped in nearly half of the metropolitan areas surveyed. The median price of a previously owned, single family home fell in 73 of the 149 metropolitan areas surveyed in the 4th quarter.
The National Association of Realtors report also said that the states with the biggest declines in the number of sales in October through December compared with the same period in 2005 were:
* Nevada: -36.1% in sales
* Florida: -30.8% in sales
* Arizona: -26.9% in sales
* California: -21.3% in sales
Nationally, sales declined by 10.1% in the 4th quarter compared with the same period a year ago. And the national median price fell to $219,300, down 2.7% from the 4th quarter of 2005.
Slower sales and cancellations of existing orders have caused the number of unsold homes to really increase. The supply of homes at 2006 sales rate averaged 6.4 months worth which was up from 4.4 months worth in 2005 and only 4 months worth in 2004.
Toll Brothers, Inc., the largest US luxury home builder, reported a 33% drop in orders during the quarter ending January 31.
Perhaps most importantly, falling home values will further decrease their use of mortgage equity withdrawal loans. In 2006, mortgage equity withdrawal accounted for 2% of GDP growth. Construction added 1% to last years GDP growth, so the importance of these factors are to the health of the US economy are enormous.
The other concern is sub-prime mortgages. Today, sub-prime mortgages amount to 25% of all mortgages, around $665 billion. Add to this the fact that approximately $1 trillion in adjustable-rate mortgages are eligible to be reset in the next two years and we will continue to see rising foreclosures. For example, foreclosures are up five times in Denver. These foreclosed homes come back onto the market and depress real estate values.
The Center for Responsible Lending estimates that as many as 20% of the subprime mortgages made in the last 2 years could go into foreclosure. This amounts to about 5% of the total homes sold coming back on the market at "fire-sales". Even if only 1/2 of that actually comes back on the market, it would cause overall valuations to go down and the ability to get home mortgage equity loans to decrease further.
Prepare yourself now because you can still get great advice from the eBook. Buy it with this secure link: https://shop.outstandingebooks.com/displayProductDocument.hg?productId=1
5. Yield Curve is still inverted!
The yield curve is still inverted. In a normal market, you get more interest (yield) for longer term investments. But very rarely the short-term rates become higher than long term rates such as now.
History has shown that an inverted yield curve is the best indicator of a future recession. The yield curve has been inverted since last fall, and if history is any judge we should be in a recession by the 3rd quarter of 2007. Throughout history, we have never had an inverted yield curve without a recession within the next 4 quarters.
The inverted yield curve does not cause the recession, it is simply a signal that something is out of whack in the economy.
6. What this means to you
One of two things could happen going forward in the real estate market: real estate prices will go up or they will go down. History has shown us that any asset that runs up, must come down, whether we are talking about the Dutch Tulip Market, the stock market bubble, the gold bubble of the early 1980s, or Japan's run-up in housing in the 1980's and subsequent 15 year decrease in values.
The big picture of the real estate market is that it goes up and down in cycles. It has been in an up cycle for
Raffles are one of the most popular and cost effective ways to raise money for a non profit organization. However, it would not be a raffle if you had nothing to give away!So what kind of prizes should you have? First of all, put yourself in your potential supporter’s shoes - What if someone comes up to you and says they are selling raffle tickets? What prize would you like to win?Here are some prizes that attract many people’s attention:Cars - Sports cars, Luxury cars, SUV’s in this years model. Another great alternative is a completely restored classic / collector’s car. You may or may not be able to get this donated. If not, consider other types of prizes, since your profit will be higher if all items are donated.Travel - Always a winner. Roundtrip Airfare, a package deal, a cruise, hotel stays, even airline miles all make great prizes. Most people love to travel and the biggest obstacle is usually cost. Now if they win this raffle, they’ll just have to take some vacation time and go.The larger trips such as week-long cruises or packages with airfare and hotel may draw more ticket buyers. However, travel doesn’t have to be exotic to make a great prize. Even a weekend getaway within driving distance could be a great prize. As long as it’s a place people in your area would want to go to for a vacation. A one night stay at a local hotel is not usually as appealing.Electronic Equipment
The Center for Responsible Lending estimates that as many as 20% of the subprime mortgages made in the last 2 years could go into foreclosure. This amounts to about 5% of the total homes sold coming back on the market at "fire-sales". Even if only 1/2 of that actually comes back on the market, it would cause overall valuations to go down and the ability to get home mortgage equity loans to decrease further.
Prepare yourself now because you can still get great advice from the eBook. Buy it with this secure link: https://shop.outstandingebooks.com/displayProductDocument.hg?productId=1
5. Yield Curve is still inverted!
The yield curve is still inverted. In a normal market, you get more interest (yield) for longer term investments. But very rarely the short-term rates become higher than long term rates such as now.
History has shown that an inverted yield curve is the best indicator of a future recession. The yield curve has been inverted since last fall, and if history is any judge we should be in a recession by the 3rd quarter of 2007. Throughout history, we have never had an inverted yield curve without a recession within the next 4 quarters.
The inverted yield curve does not cause the recession, it is simply a signal that something is out of whack in the economy.
6. What this means to you
One of two things could happen going forward in the real estate market: real estate prices will go up or they will go down. History has shown us that any asset that runs up, must come down, whether we are talking about the Dutch Tulip Market, the stock market bubble, the gold bubble of the early 1980s, or Japan's run-up in housing in the 1980's and subsequent 15 year decrease in values.
The big picture of the real estate market is that it goes up and down in cycles. It has been in an up cycle for 10 years and it is most likely time for it to face it's down cycle.
This is the natural cycle of assets:
* Markets go up
* Greed and insanity take over
* An excess forms (i.e. overbuilding)
* A downturn corrects the excesses in the market
This natural cycle is the same principle in "the big picture" as crash dieting is in "the little picture". We starve ourselves to lose 15 pounds, which shuts down our body for the short term, only for it to crank up higher when we go back to "normal" eating patterns.
And speaking of diets, I heard from an old high school buddy who has lost weight on a "cookie" diet where he eats one high protein dinner a day and only 6 low fat cookies throughout the day whenever he is hungry. While he has lost weight on this 800 calorie a day diet, I can't see how it is healthy to starve yourself like that. He told me that whenever he breaks his diet and eats any sodium, he immediately gains one and a half pounds. Talk about your body out of whack! I still recommend exercise (www.mattfurey.com) combined with a low white-carb diet (no white bread, white pastas, and limited sugars). It works for me.
Set your portfolio up correctly now by reading the eBook at www.myrealestatebubble.com.
***Disclaimer: This information and the corresponding websites do not constitute professional services, including, but not limited to investment advice. Please consult a finance and/or investment professional for services and advice.
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