Category — Heard 'Round the Block

GRACE KENG reports on the Santa Clara County Assessors speech.  Larry Smith, the county assessor is correct, Santa Clara County, excepting the far eastern and southern end of the County, do not have a foreclosure problems.  The problem for the market is mortgage underwriting criteria making it difficult for buyers to qualify for purchase money loans.

PRESIDENT BUSH just delivered a speech on foreclosures.  “Hope Now” a voluntary program to reduce principle loan balances and payments on owner occupied homes in foreclosure has helped over 1 million homeowners, according to the President.

This is may be a historic first “infomercial” by a President who was promoting “Hope Now”.

All of this is actually good for the housing market, because it may reduce the number of REOs.  However, the stock market has gone south since the President’s speech.  What do I know.

PETER THIEL brings us an optimistic thought experiment on globalization that includes an analysis of the subprime mortgage market bust on global markets.  This is an important article for anyone interested in global markets, booms, busts, and the future.

My favorite line by Thiel: “approaching retirement in an actuarially bankrupt country.” Sigh.  Unfortunately true.

BASIC PREPARATION of a home for sale brings in buyers. Grace Keng has an excellent post on what home sellers need to do to prepare their home for sale.  The links in this article are great reads, and provide detailed home staging advice.

Because owners are used to seeing their own home, they have trouble seeing their own home as a prospective buyer will.  Front landscaping, front doors and trim, colors, and a well kept look will reduce both the amount of time it takes to sell a home, and final purchase prices.  Some elbow grease, soap and water, trimming, and paint costing less than $100 can add tens of thousands of dollars in value, but more importantly, cause a sale of a home that might otherwise not sell.

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NAR HAS BEEN NAMED worst forecaster ever. Via Instapundit.  For the last 2 1/2 years NAR has continuously generated press releases stating the “bottom of the market” has passed and home sales will be picking up.  Phony market reports by NAR have drawn a backlash by the media and the public.

You can’t put lipstick on a pig.  NAR has become counterproductive to the real estate market.  Buyers now will not believe NAR or Realtor.com when the market does go flat or turn around, and may as a result prolong the market downturn.