Real Estate Catastrophe! Or Real Estate Hyperbole?


By Omar Bounds
BREAKING NEWS: The industry that triggered this great recession in the first place
is coming apart at the seams... AGAIN!

The U.S. Commerce Department just reported that all the gains made in home-building activity
since last October have just been wiped out - construction of new homes and apartments just
fell off the cliff:

Between May and June, new housing starts plunged 5%. That's an absolutely astounding annualized
rate of decline of nearly 50%. At this rate, HALF of all home construction - and construction
jobs - would vanish in a year!

Plus for companies involved in building condos and apartments, things are even worse: Their
activity plunged 19.3% IN A SINGLE MONTH!

Bottom line: This could NOT be a more serious blow for the U.S. economy. After all - it was
the housing bust that drove foreclosures sky-high and pushed our largest financial institutions
to the brink of bankruptcy in the first place.

OR NAR economist expects stabilization in 2010. The National Association of Realtors' chief
economist, Lawrence Yun, Ph.D., told his constituency at the NAR convention here that the
national real estate market should stabilize in 2010.

He got a big ovation from a packed ballroom at the San Diego Convention Center this morning
when he heralded the "power of the NAR" for successfully encouraging Congress to extend the
$8,000 first-time home buyer tax credit. As a result, "the credit is working better than first
projected," Yun said. "It now looks like we'll have 2.3 to 2.4 million first-time buyers this year."

OR New data: Home inventory rises as prices continue to get slashed!

All three of these headers appeared on industry newsletters over the last few days. My inbox is
full of such weakly. But what is the truth? Which statement can one trust to make a real estate decision?

ALL Three statements are TRUE & All Three are also Hyperbole.

And there in lies the 2010 Real Estate Dilemma.

1. New home construction is at the precipice, ready to fail as an industry. A large swath of the
nation's unemployment number relates to that fact. Yet in my own zip code, a long stalled 55 & over
apartment tower is currently under way and moving forward at a brisk pace. Once competed will it sell
or sit? Will a run by local empty nesters from their too big and overtaxed single homes push that local
inventory over the tipping point? Seems that the value here will get punished by success or failure
of this project.

2. NAR chief economist Yun's numbers are also correct, but also hyperbole. All I can say to the so
called success of the tax credit is, "so what"? What is the net result of an $8,000 tax credit in the
overall picture in the purchase of a property in excess of $200,000.00 and was offered to a very small
sector of the buying public? But it did get some people in the market and the numbers reflect it.

3. With the withdrawal of this credit and the usual summer lull in sales, prices are falling again.
Sharply. Despite the hype over the credit, real interest in housing hasn't returned.

4. For commercial real estate, multiply by a factor of 3. It hasn't had any of the attention that housing
has received and is outright foundering with no relief in sight.

Yet, despite all this negativity, a family member recently successfully marketed their attached home and
traded up to a larger single property to accommodate a growing family. No tax credit was involved by either
party and the price paid in both transactions reflected fair market value. Nobody got rich in the deal, but
no one was distressed by it either. All were in positions whereby they COULD accept current market value.

I said in March that if one didn't sell by May 31st, that they won't be able to sell until September or later.
I appeared to have been right. On June 1st, I said that if you bought in the last 1/2 of May, you probably paid
too much and if the deal relied on a tax credit to qualify, you will be underwater by August. I believe that
will be proven to correct as well.

Hyperbole? No, because there are always exceptions. Some markets have stabilized, but not due to the tax credit.

Are we "at the bottom"? Depends upon where you are standing and what you are standing on.

We are still in a market whose overall price trends are "lending limited".

Uncertainty is still a dominate market influence. For sellers, time on market will now return to the front burner.

Omar P Bounds III; President & Lead Auctioneer, The Bounds Auction Company is a PA & VA licensed auctioneer &
a licensed Real Estate professional in PA & New Jersey. He holds the professional designations Accredited
Auctioneer Real Estate, Certified Estate Specialist & Graduate Personal Property Appraiser of the National
Auctioneers Association. The Bounds Auction Company specializes in Real Estate auctions & estate services
and serves the Mid Atlantic region directly from their offices in Jenkintown Pa., and nationally via a network
of associated auction professionals. http://www.boundsauctions.com

Article Source: http://EzineArticles.com/?expert=Omar_Bounds

The Journal of Real Estate Finance and Economics



World Real Estate Articles

Points to consider when the property have passed
2010 prospects in the Real Estate market
Stock vs Real Estate Investing
Real Estate Business With Websites
Commercial Real Estate
Quick and easy ways to make money -- real estate online business to Real
Real Estate Investing and Marketing Online
Real Estate and Web 2.0
Real Estate Search Engines
How To Begin Investing In Real Estate
Real Estate Market of South Africa
RCanada Real Estate Investing one of the best opportunities in the world



Real Estate Directory Lists

Real Estate Directory 1 | Real Estate Directory 2 | Real Estate Directory 3 | Real Estate Directory 4 | Real Estate Directory 5



Nonprofit Organizations

Geological Hazards The IGOS Geohazards Initiative. The igosgeohazards.org website provides public access to hazards information, including earthquake reports geological hazards, earthquakes, tsunamis, volcanoes and land instability.
Electronic and Environment Increasing concerns about the impact of chemicals on health and the environment are being translated into strict legislation that may have significant impact on the use and disposal of plastics, particularly those used in electrical and electronic equipment. OEMs and their molders and extruders must take a careful look at current and upcoming legislation around the world to ensure compliance.
College of Agriculture The College of Agriculture offers eight undergraduate majors with 23 options within its eight departments. Visit the websites of each to find out more about their research, faculty and courses. Also look at the undergraduate majors page for more information.
College Lists Information We collect information about College website. Contents and search for the College. To be useful for students who wish to attend the College. You can send information to us. So that we will be publishing it to benefit site visitors in the future. WWW.COLLEGE-LISTS.COM is intended for public benefit and non-profit.
Iowa Crime Prevention.com One of the easiest safety tips a senior can use is to simply display confidence. Since criminals are looking for victims who appear to be timid, they are far less likely to assault someone who is confident and alert. Those who walk with purpose,and hold their head up instead of shuffling feet and staring at the ground are simply not as attractive as targets. Whenever possible, go out with other people, or at least stick to areas where large crowds are present. Predators are unlikely to strike if there are others around.
The California Fetal Alcohol Spectrum Organization The Fetal Alcohol Spectrum Organization, a non-profit organization invites you to learn more about FASD, Fetal Alcohol Spectrum Disorders and Fetal Alcohol Syndrome
The PUBLIC Educational Blog The system is so bogged down in political bureaucracy, red tape, special interests, union politics, under funding, misuse of funds, misdirection, non-focus, status quo thinking, social rhetoric, unfunded programs, broken political promises, and under staffed, under qualified, and under paid administrators and teachers that the PUBLIC educational system can never be fixed. It is an impossible task.
IT News and Technology News IT News is the most comprehensive technology news site on the Internet. The site is intended to be from well-known and respected sources such as Computerworld, Macworld, PC World, Infoworld, Network World and others.
Amateur Athletic Association women and soft ball guide The main softball rules are very simple and easy to understand. Softball rules are even easier to understand if you have any experience of baseball rules or rounders rules. Softball is a sport where you can happily play by just understanding the basic rules. The Lions (or Dave to be precise) have created this complete list of softball rules! Softball Rules. Nagaaawomen.org is website for information about North American.
Beautiful Bears and Jewelry and Porcelain and Ornaments Angelsoverboston.com: gifts, art, crafts, angel hierarchy and names, music, and how to contact angels.
Multimedia Mathematics Software for Consumers and Educators A tutorial program designed to provide online algebra homework help created by certified math instructors. Computer based with animated graphics and audio instruction.
Assessment of Neuropathic Pain in Primary Care The International Association for the Study of Pain (IASP) defines neuropathic pain as pain arising as a direct consequence of a lesion or disease affecting the somatosensory system. It is common in clinical practice to classify neuropathic pain according to the underlying etiology of the disorder and the anatomical location of the specific lesion.If possible, neuropathic pain should also be qualified as being of peripheral or central origin in terms of the location of the lesion or disease process.
Scholarship News Sbcalsoap.org has many scholarships, awards and bursaries available for student application. Many of these are specific to students. Learn more about Scholarships and Awards that are applicable to most students. Also, please visit our scholarship news for the latest news on funding support.


Dofollow Social Bookmarking Sites

www.bookmarkdofollow.com An attractive description your website. If you would link to bring in traffic. People first look at the headline first and next the description. If the description is catchy, they are sure to visit your site. It should be frank, honest and informative is good your sites. It's great way to submit dofollow bookmarking sites.
www.addlinklist.com Addlinklist.com is Social Bookmark Dofollow : Increase PR and Ranking your visibility by submitting and optimizing your website for Google search, and distributing your content across Google.
www.webmasterpligg.com Webmasterpligg.com Social Bookmark Dofollow Submit a new story in your website, Increase PR and Ranking your visibility by submitting and optimizing your website for Google search and distributing your content across Google.
www.gallerywebsite.org GalleryWebsite.org is Dofollow Social Bookmarking Gallery Website Showcase. You can suggest link, add link, add url, submit dofollow, submit new story. Increase PR and Ranking your visibility by submitting and optimizing your website.
www.seowebarticle.com Description www.seowebarticle.com
www.dofollowbookmarksites.com DofollowBookmarkSites.com is Dofollow Social Bookmarking Sites Submit a new story in your website, Increase PR and Ranking your visibility by submitting and optimizing your website for Google search and distributing your content across Google.
www.dofollowbookmarking.com DofollowBookmarking.com is Dofollow Social Bookmarking Sites Submit a new story in your website, Increase PR and Ranking your visibility by submitting and optimizing your website for Google search and distributing your content across Google.
www.addlinkfreedom.com Addlinkfreedom.com is Social Bookmark Dofollow : Increase PR and Ranking your visibility by submitting and optimizing your website for Google search, and distributing your content across Google.
www.thaibigg.com User submit and share a news link, great stories. Allows comment and vote on stories.
www.sbuydigg.com Help you can find information on new website, companies, articles, resources and stories by categories.




Others Sites

www.hosttrendy.com Description www.hosttrendy.com
www.handbagbestbuy.com Description www.handbagbestbuy.com
www.108flashgames.com Description www.108flashgames.com
www.thebest10hostings.com Description www.thebest10hostings.com