by Colleen Edwards on February 8th, 2010
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Chuck Underwood studies, writes and lectures about the differences in generational outlook and behavior—the underlying thought being that in the first twenty years of one’s life, each of us forms unique core values and beliefs based on the times and its teachings. An abrupt change in the times or the teachings creates the next generation.
Today in the United States, there are five generations living side by side:
The GI Generation, now 84 and older, who came into leadership roles in our country after WWII, and exhibited both their vision and their compassion;
The Silent Generation, now 65 - 83, best known for not rocking the boat;
The Baby Boomers, now age 46 – 64, social revolutionaries at their core, who participated in the women’s movement, the civil rights movement, the environmental movement, the anti-war movement and the sexual revolution;
Gen-X, now age 29 – 45, the children with the most difficult passage, with the least amount of adult supervision, making them into an “island” generation; and
The Millennials, up to age 28, an optimistic, nurtured, Boomer-raised group that shares its ore values with those of their parents.
During the week, Chuck will be talking about generational differences and how they affect outlook, maturation, confidence and even their buying patterns in real estate. Listen to Chuck with new podcasts daily.
by Colleen Edwards on February 5th, 2010
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When The Real Story asks Stan Humphries what worries him most about the current market, he talks about not one, but five factors that could each in itself be enough of a storm cloud to darken the horizon for months to come: New foreclosures on their way. Negative equity. Increasing interest rates. Weakened demand as tax credits are withdrawn. Unemployment.
He is concerned that we can experience a recovery without job growth, as we have seen in recent downturns. If the economy witnesses strong growth in its GDP, it can live with anemic job growth. His good news is that in late 2009, the numbers of temp workers notched up a bit. This is usually seen as a precursor to permanent placements, so we will be watching that index closely in the months to come.
Another anomaly of this market: not only has the rate of homeownership declined, but rental vacancy rates have picked up. Why? Household compression is the name of the game, with not just extended families moving in together, but non-related families looking for other families to share their homes and expenses. As we see foreclosures being snapped up by would-be rental entrepreneurs, will they all see tenants for their properties or will household compression keep rental vacancy rates high, and these new investments less attractive?
by Colleen Edwards on February 4th, 2010
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Stan Humphries, chief economist for Zillow.com, has seen the company’s real estate data base services grow and broaden to serve buyers, sellers, and now, renters. Today he talks to The Real Story about how federal support programs helped to stabilize the declining market in 2009, and how the withdrawal of that support could affect the 2010 recovery.
Stan talks about the purchase of mortgage-backed securities and the creation of tax credits, and how those programs affected demand when all other indicators gave the home buying public no reason to venture into real estate. He sees a limit, however, to how much we can subsidize the market in order to stabilize it.
by The Real Story Newsroom on February 4th, 2010
Is sustainability compatible with shopping? It will be this Sunday—and every first Sunday of the month—at the Alameda Point flea market.
Officially called the Alameda Point Antiques and Collectibles Faire, the event is in its 11th year. For one day a month, the old asphalt of the former Naval Air Station transforms into a massive treasure hunt. Some 800 booths and 10,000 shoppers gather in one of the most sustainable activities around: reusing consumer goods. According to the event’s official web site www.antiquesbythebay.net, everything on sale “must be at least 20 years old. No reproductions are allowed.”
So what’s there to buy? Acres of fascinating stuff: furniture, dishes, clothes, books, jewelry, shoes hats, candlesticks, pottery, artwork, glassware, vintage kitchen items, architectural salvage, even deer antlers, according to one report. It’s recommended for people who are decorating a home, or for collectors of antiques or vintage clothing.
One of the three tenants of sustainability (along with conserve and recycle) is reuse. This monthly event is a reuse heaven. All with views of the beautiful Bay and San Francisco.
Admission gets cheaper as the day goes on. A $5 ticket and free parking lets you in at 9, when there’s plenty of merchandise left. Bring cash or checks and dress for the weather. Hint: this Sunday, it will probably be cool and windy.
by Colleen Edwards on February 3rd, 2010
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The Real Story received some good advice for home sellers from Stan Humphries, chief economist for Zillow.com. Stan is of the “educate-yourself-first” school of real estate sales, inviting prospective sellers to get up to speed on the listings and the sales not just for a local area, but for the micro market, all the way down to the streets around one’s home. In that way, sellers can get an up-to-the-minute snapshot on how their market is doing and develop a realistic approach toward the sale of their home.
Armed with that level of information, a home seller can do a better job of engaging a real estate professional to represent the property. According to Stan, pricing a house well is critical in this buyer’s market — but that doesn’t mean giving the home away. He reminds us that foreclosures are usually discounted about 28% below that of a resale home, and that the market for a foreclosure is rarely looking at resale properties. That resale buyer is looking for value — a feeling that extends beyond the price point and satisfies the buyer’s real need to feel that the condition, location, amenities and “extras” make this a fair deal, no matter if the market still has some adjusting to do.
by Colleen Edwards on February 2nd, 2010
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Stan Humphries, chief economist from Zillow.com, reminds us today that just because foreclosures aren’t front-page news anymore, no one should downplay the fact that they are going to remain one of the biggest factors in keeping us from a true real estate recovery.
Not only should we expect to see three million or more foreclosures come to market in 2010 (about the same number as in 2009), but we should take a hard look at the underlying reasons for foreclosures: our unemployment rates are high nation-wide, coupled with the fact that 21%–that’s 1 in 5—of America’s home owners are underwater. These are the kind of ingredients to put even more homes in the “60-days delinquent” pipeline. Stan believes that the banks are holding back on their already-foreclosed-upon properties, tucking them away so that they do not flood the market and cause further price erosion.
But here’s the kicker—if one looks at the sales figures that look so improved statewide last November, 40% of those sales were foreclosures. In the Central Valley, make that number 60% foreclosures. And in Las Vegas, a whopping 70% of the transactions were foreclosure sales.
Coming up next, the resets of the Option ARMS (adjustable rate mortgages) and the Alt A loans (which needed less documentation than the other loan products in the marketplace). Foreclosures are here to stay for now, and will effect price stabilization for months to come.
