HARRIS REAL ESTATE UNIVERSITY Students (and future students..) there is absolutely no question that we are experiencing a sales surge and the spring 2012 housing market will be the best in at least 6 years. No doubt, this is a reason to celebrate.

But, lets not forget the headwinds facing our industry:

1) 4,000,000 owners have already lost their homes.

2) 6,000,000 owners are currently in default.

3) 11,000,000 owners are underwater.

4) 34% of all home sales are ‘distressed’ (short sales and REOs)

5) Homes for less than $250,000 are selling quickly..why? All cash investors and first time home buyers.

6) Move up buyers are trapped. Unless they can afford to sell (not underwater).

As long as that overhang remains (which it will for years) any housing recovery will be slow and regional. Housing IS recovering home by home, street by street…community by community. Fellow agents, we are in a ground war fighting for the recovery of our industry.

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Sales of previously owned homes surged in January to the fastest pace since May 2010 in another sign that the housing market is slowly making some headway against its longest dip since the Great Depression.

The National Association of Realtors, a industry trade group, reported Wednesday that existing-home sales — the lion’s share of the housing market — rose 4.3 percent in January. The equates to a seasonally adjusted annual rate of 4.57 million homes, which is still well below the 6 million pace that economists say is needed for a healthy housing market.

Last month, there were 2.31 million unsold homes on the market last month, the lowest since March 2005. That represented a 6.1 months’ supply at January’s sales pace, the lowest since April 2006 and down from 6.4 months in December.

A supply of 6 months is generally considered ideal. But the median sales price fell 2 percent to $154,700 in January from a year ago.

QUESTION: Why do 1% of the agents make 99% of the money? Answer: They are making money NOW doing REOs and BPOs. Why aren’t you? Watch the FREE Agent REO Secrets video and grab the NEW FREE REO/ BPO Book.NOTICE: Free book guaranteed for the first 100 agents only.

Washington, DC, February 22, 2012

Existing-home sales rose in January, marking three gains in the past four months, while inventories continued to improve, according to the National Association of Realtors®.

Total existing-home sales¹, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, increased 4.3 percent to a seasonally adjusted annual rate of 4.57 million in January from a downwardly revised 4.38 million-unit pace in December and are 0.7 percent above a spike to 4.54 million in January 2011.

Lawrence Yun, NAR chief economist, said strong gains in contract activity in recent months show buyers are responding to very favorable market conditions. “The uptrend in home sales is in line with all of the underlying fundamentals – pent-up household formation, record-low mortgage interest rates, bargain home prices, sustained job creation and rising rents.”

Total housing inventory at the end of January fell 0.4 percent to 2.31 million existing homes available for sale, which represents a 6.1-month supply² at the current sales pace, down from a 6.4-month supply in December.

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“The broad inventory condition can be described as moving into a rough balance, not favoring buyers or sellers,” Yun said. “Foreclosure sales are moving swiftly with ready home buyers and investors competing in nearly all markets. A government proposal to turn bank-owned properties into rentals on a large scale does not appear to be needed at this time.”

NAR President Moe Veissi, broker-owner of Veissi & Associates Inc., in Miami, said buying power is enticing more potential home buyers. “Word has been spreading about the record high housing affordability conditions and our members are reporting an increase in foot traffic compared with a year ago,” he said. “With other favorable market factors, these are hopeful indicators leading into the spring home-buying season. We’re cautiously optimistic that an uptrend will continue this year.”

Total unsold listed inventory has trended down from a record 4.04 million in July 2007, and is 20.6 percent below a year ago.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was a record low 3.92 percent in January, down from 3.96 percent in December; the rate was 4.76 percent in January 2011; recordkeeping began in 1971.

The national median existing-home price³ for all housing types was $154,700 in January, down 2.0 percent from January 2011. Distressed homes⁴ – foreclosures and short sales which sell at deep discounts – accounted for 35 percent of January sales (22 percent were foreclosures and 13 percent were short sales), up from 32 percent in December; they were 37 percent in January 2011.

“Home buyers over the past three years have had some of the lowest default rates in history,” Yun said. “Entering the market at a low point and buying at discounted prices have greatly helped in that success.”

All-cash sales were unchanged at 31 percent in January; they were 32 percent in January 2011. Investors account for the bulk of cash transactions.

Investors purchased 23 percent of homes in January, up from 21 percent in December; they were 23 percent in January 2011. First-time buyers rose to 33 percent of transactions in January from 31 percent in December; they were 29 percent in January 2011.

Forty-seven percent of NAR members report that contracts settled on time in January; 21 percent had delays and 33 percent experienced contract failures. Contract cancellations are unchanged from December but were only 9 percent in January 2011; they are caused largely by declined mortgage applications and failures in loan underwriting from appraisals coming in below the negotiated price.

Single-family home sales rose 3.8 percent to a seasonally adjusted annual rate of 4.05 million in January from 3.90 million in December, and are 2.3 percent above the 3.96 million-unit pace a year ago. The median existing single-family home price was $154,400 in January, down 2.6 percent from January 2011.

Existing condominium and co-op sales increased 8.3 percent to a seasonally adjusted annual rate of 520,000 in January from 480,000 in December but are 10.3 percent lower than the 580,000-unit level in January 2011. The median existing condo price was $156,600 in January, up 2.0 percent from a year ago.

Regionally, existing-home sales in the Northeast rose 3.4 percent to an annual pace of 600,000 in January and are 7.1 percent above a year ago. The median price in the Northeast was $225,700, which is 4.2 percent below January 2011.

Existing-home sales in the Midwest increased 1.0 percent in December to a level of 980,000 and are 3.2 percent higher than January 2011. The median price in the Midwest was $122,000, down 3.9 percent from a year ago.

In the South, existing-home sales rose 3.5 percent to an annual level of 1.76 million in January but are unchanged from a year ago. The median price in the South was $134,800, which is 0.3 percent below January 2011.

Existing-home sales in the West jumped 8.8 percent to an annual pace of 1.23 million in January but are 3.1 percent below a spike in January 2011. The median price in the West was $187,100, down 1.8 percent from a year ago.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.

# # #

NOTE: For local information, please contact the local association of Realtors® for data from local multiple listing services. Local MLS data is the most accurate source of sales and price information in specific areas, although there may be differences in reporting methodology.

¹Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings from multiple listing services. Changes in sales trends outside of MLSs are not captured in the monthly series. A rebenchmarking of home sales is done periodically using other sources to assess the overall home sales trend, including sales not reported by MLSs.

Existing-home sales differ from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which account for more than 90 percent of total home sales, are based on a much larger sample – about 40 percent of multiple listing service data each month – and typically are not subject to large prior-month revisions.

The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns.

Single-family data collection began monthly in 1968, while condo data collection began quarterly in 1981; the series were combined in 1999 when monthly collection of condo data began. Prior to this period, single-family homes accounted for more than nine out of 10 purchases. Historic comparisons for total home sales prior to 1999 are based on monthly single-family sales, combined with the corresponding quarterly sales rate for condos.

Also released today are annual data revisions. Each February, NAR Research incorporates a normal review of seasonal activity factors and fine-tunes historic data for the past three years based on the most recent findings. Revisions have been made to monthly seasonally adjusted annual sales rates for 2009 through 2011, as well as the inventory month’s supply data; most revisions are minor with little or no impact on previous characterizations of the overall market. There are no revisions to monthly home prices or raw inventory data (beyond normal prior-month revisions).

QUESTION: Why do 1% of the agents make 99% of the money? Answer: They are making money NOW doing REOs and BPOs. Why aren’t you? Watch the FREE Agent REO Secrets video and grab the NEW FREE REO/ BPO Book.NOTICE: Free book guaranteed for the first 100 agents only.

²Total inventory and month’s supply data are available back through 1999, while single-family inventory and month’s supply are available back to 1982 (prior to 1999, condos were measured quarterly while single-family sales accounted for more than 90 percent of transactions).

³The only valid comparisons for median prices are with the same period a year earlier due to the seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the composition of sales can distort median price data. Year-ago median and mean prices sometimes are revised in an automated process if more data is received than was originally reported.

⁴Distressed sales (foreclosures and short sales), all-cash transactions, investors, first-time buyers and contract failures are from a monthly survey for the Realtors® Confidence Index, posted at Realtor.org.

The Pending Home Sales Index for January will be released February 27 and existing-home sales for February is scheduled for March 21. The Investment and Vacation Home Buyers Survey, covering transactions in 2011, will be released March 29; all release times are 10:00 a.m. ET.

Information about NAR is available at www.realtor.org. This and other news releases are posted in the News Media section. Statistical data in this release, other tables and surveys also may be found by clicking on Research.

REALTOR® is a registered collective membership mark which may be used only by real estate professionals who are members of the NATIONAL ASSOCIATION OF REALTORS® and subscribe to its strict Code of Ethics. Not all real estate agents are REALTORS®. All REALTORS® are members of NAR.

Total housing inventory at the end of January fell 0.4 percent to 2.31 million existing homes available for sale, which represents a 6.1-month supply² at the current sales pace, down from a 6.4-month supply in December.

“The broad inventory condition can be described as moving into a rough balance, not favoring buyers or sellers,” Yun said. “Foreclosure sales are moving swiftly with ready home buyers and investors competing in nearly all markets. A government proposal to turn bank-owned properties into rentals on a large scale does not appear to be needed at this time.”

Total unsold listed inventory has trended down from a record 4.04 million in July 2007, and is 20.6 percent below a year ago.

NAR President Moe Veissi, broker-owner of Veissi & Associates Inc., in Miami, said buying power is enticing more potential home buyers. “Word has been spreading about the record high housing affordability conditions and our members are reporting an increase in foot traffic compared with a year ago,” he said. “With other favorable market factors, these are hopeful indicators leading into the spring home-buying season. We’re cautiously optimistic that an uptrend will continue this year.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was a record low 3.92 percent in January, down from 3.96 percent in December; the rate was 4.76 percent in January 2011; recordkeeping began in 1971.

The national median existing-home price³ for all housing types was $154,700 in January, down 2.0 percent from January 2011. Distressed homes⁴ – foreclosures and short sales which sell at deep discounts – accounted for 35 percent of January sales (22 percent were foreclosures and 13 percent were short sales), up from 32 percent in December; they were 37 percent in January 2011.

“Home buyers over the past three years have had some of the lowest default rates in history,” Yun said. “Entering the market at a low point and buying at discounted prices have greatly helped in that success.”

All-cash sales were unchanged at 31 percent in January; they were 32 percent in January 2011. Investors account for the bulk of cash transactions.

Investors purchased 23 percent of homes in January, up from 21 percent in December; they were 23 percent in January 2011. First-time buyers rose to 33 percent of transactions in January from 31 percent in December; they were 29 percent in January 2011.

Forty-seven percent of NAR members report that contracts settled on time in January; 21 percent had delays and 33 percent experienced contract failures. Contract cancellations are unchanged from December but were only 9 percent in January 2011; they are caused largely by declined mortgage applications and failures in loan underwriting from appraisals coming in below the negotiated price.

Single-family home sales rose 3.8 percent to a seasonally adjusted annual rate of 4.05 million in January from 3.90 million in December, and are 2.3 percent above the 3.96 million-unit pace a year ago. The median existing single-family home price was $154,400 in January, down 2.6 percent from January 2011.

Existing condominium and co-op sales increased 8.3 percent to a seasonally adjusted annual rate of 520,000 in January from 480,000 in December but are 10.3 percent lower than the 580,000-unit level in January 2011. The median existing condo price was $156,600 in January, up 2.0 percent from a year ago.

Regionally, existing-home sales in the Northeast rose 3.4 percent to an annual pace of 600,000 in January and are 7.1 percent above a year ago. The median price in the Northeast was $225,700, which is 4.2 percent below January 2011.

Existing-home sales in the Midwest increased 1.0 percent in December to a level of 980,000 and are 3.2 percent higher than January 2011. The median price in the Midwest was $122,000, down 3.9 percent from a year ago.

In the South, existing-home sales rose 3.5 percent to an annual level of 1.76 million in January but are unchanged from a year ago. The median price in the South was $134,800, which is 0.3 percent below January 2011.

Existing-home sales in the West jumped 8.8 percent to an annual pace of 1.23 million in January but are 3.1 percent below a spike in January 2011. The median price in the West was $187,100, down 1.8 percent from a year ago.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.

# # #

NOTE: For local information, please contact the local association of Realtors® for data from local multiple listing services. Local MLS data is the most accurate source of sales and price information in specific areas, although there may be differences in reporting methodology.

¹Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings from multiple listing services. Changes in sales trends outside of MLSs are not captured in the monthly series. A rebenchmarking of home sales is done periodically using other sources to assess the overall home sales trend, including sales not reported by MLSs.

Existing-home sales differ from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which account for more than 90 percent of total home sales, are based on a much larger sample – about 40 percent of multiple listing service data each month – and typically are not subject to large prior-month revisions.

The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns.

Single-family data collection began monthly in 1968, while condo data collection began quarterly in 1981; the series were combined in 1999 when monthly collection of condo data began. Prior to this period, single-family homes accounted for more than nine out of 10 purchases. Historic comparisons for total home sales prior to 1999 are based on monthly single-family sales, combined with the corresponding quarterly sales rate for condos.

Also released today are annual data revisions. Each February, NAR Research incorporates a normal review of seasonal activity factors and fine-tunes historic data for the past three years based on the most recent findings. Revisions have been made to monthly seasonally adjusted annual sales rates for 2009 through 2011, as well as the inventory month’s supply data; most revisions are minor with little or no impact on previous characterizations of the overall market. There are no revisions to monthly home prices or raw inventory data (beyond normal prior-month revisions).

²Total inventory and month’s supply data are available back through 1999, while single-family inventory and month’s supply are available back to 1982 (prior to 1999, condos were measured quarterly while single-family sales accounted for more than 90 percent of transactions).

³The only valid comparisons for median prices are with the same period a year earlier due to the seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the composition of sales can distort median price data. Year-ago median and mean prices sometimes are revised in an automated process if more data is received than was originally reported.

⁴Distressed sales (foreclosures and short sales), all-cash transactions, investors, first-time buyers and contract failures are from a monthly survey for the Realtors® Confidence Index, posted at Realtor.org.

The Pending Home Sales Index for January will be released February 27 and existing-home sales for February is scheduled for March 21. The Investment and Vacation Home Buyers Survey, covering transactions in 2011, will be released March 29; all release times are 10:00 a.m. ET.

Information about NAR is available at www.realtor.org. This and other news releases are posted in the News Media section. Statistical data in this release, other tables and surveys also may be found by clicking on Research.

REALTOR® is a registered collective membership mark which may be used only by real estate professionals who are members of the NATIONAL ASSOCIATION OF REALTORS® and subscribe to its strict Code of Ethics. Not all real estate agents are REALTORS®. All REALTORS® are members of NAR.

The road to buying or selling a home is often a long one. Along the way, you may discover that your relationship with your real estate agent just isn’t working anymore. Maybe the agent is moving faster than you’d like. Or they’re not as available as you need them to be. Maybe they just don’t get you.

Now what? Is it OK to break up with your real estate agent? And if so, how can you gracefully end it? The answer depends on whether you’re working with an agent as a buyer or a seller.

Advice for Buyers

Real estate agents earn their commissions from sellers, which are split between seller’s and buyer’s agents. As a general rule, as a buyer, you won’t be asked to enter into a contractual or financial agreement with a real estate agent. Though there are some agents who ask buyers to sign an exclusivity agreement, in which the buyer agrees not to work with another real estate agent but this isn’t the norm.

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Instead, a buyer makes a handshake agreement with the real estate agent. You’re basically agreeing to exclusively rely upon that agent. And that’s fair. Agents often work hard and spend a lot of time engaging with buyers, watching the market, writing contracts, showing properties, reviewing disclosures, and so on. Imagine how they’d feel after spending months working with a client, only to be informed that another agent found them the home they want?

If you’re not quite ready to be tied down to a particular agent, it’s better not to engage one until you are ready. That said, it’s OK to look for agents even if you’re a year away from making a serious move into the market. Some buyers need data and advice as they tip their toes into the market. Just be honest.  A good real estate agent will read your situation well and provide the appropriate amount of attention. They’ll act as a resource and be available when you need them. A big turn off for buyers is an agent who puts on the full court press when they are not nearly ready to buy.

Before you enter into a handshake agreement, do your homework. Ask friends for references or check out online agent reviews. Going to open houses is a good way to meet agents who work in the neighborhood you are looking to buy. Make sure you’ve picked the most compatible agent you can find. Start slow and feel out the relationship. It is harder to break up with your agent if you have too deeply engaged them.

As time goes on, you may find that the relationship just isn’t working. If that’s the case, just be honest and upfront before too much more time passes. Offer the agent constructive feedback about why it’s not working for you, and give them examples. It’s possible after an open dialogue the agent will do a better job for you. If not, at the minimum, you’ll have given the agent important feedback, which will help them do a better job for the next client (in theory, at least). This way you won’t be hitting the agent out of left field with the sudden announcement that you’re buying a house through another agent.

Advice for Sellers

Since the seller pays the real estate agent’s commission, the seller generally is required to sign a legal agreement with an agent’s brokerage firm. In most cases, the agreement is for six months. During that period, you’re contractually obligated to work exclusively with the agent and brokerage firm specifically on the sale of your home. In fact, even if you find a buyer on your own, (such as a friend), the listing agent/brokerage firm is still due their commission.

Just as a buyer must do his homework, it’s even more important for a seller to do his research, given the contractual agreement required. But you do have some leeway. Even if you sign a listing agreement, you aren’t necessarily obligated to sell your home. You can say no to open houses or showings and you aren’t required to sign a contract with any buyer. This is where a seller still holds some power.

However, most listing agreements state that if the listing agent brings an offer at the listing price and the seller doesn’t accept it, the agent is still due a commission. This scenario happens sometimes when the listing agent and seller aren’t getting along.

In most situations, if the listing agent isn’t doing a good job but there’s still time left on the agreement, you should simply tell the agent it’s not working out. A good, fair and honest agent will apologize for not meeting your expectations and will agree to release you from the agreement ahead of schedule. The agent doesn’t have to do this, but it would be ridiculous — not to mention counter productive — for an agent to insist on enforcing the agreement when the client isn’t happy. It does happen, however. Usually the seller responds by no longer agreeing to open houses or considering offers from the agent.

Sometimes, an agent wants to break up with the seller. Maybe the seller insists on keeping the price of the home too high or isn’t cooperating to accommodate showings. The agent simply feels she can’t be successful with the seller, no matter how much time she puts into the job. Here again, the two parties are bound by a legal agreement, which can be terminated earlier by mutual consent. If you’re a seller whose agent wants out of the agreement because you aren’t taking the necessary steps to sell your home, it’s best to let them go — and to give serious consideration as to whether you’re really ready to sell or not.

Celebrity real estate, like regular real estate, usually hits the market in the aftermath of divorce proceedings.

Patricia Arquette and former husband Thomas Jane, listed their home for sale in Mid-Wilshire, Los Angeles after they announced their divorce. First listed on the market in June 2011, Arquette’s home recently sold for $2.775 million — 20 percent less than the original asking price, according to the Real Estalker.

Arquette, best known for her role in TV’s “Medium,” which aired 2005 through 2011, purchased the vine-covered home in 2003 with Jane for $2.25 million. Arquette and Jane — of TV series “Hung” — were married in 2006, they divorced in late 2010.

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Built in 1929, Arquette’s former home is a stucco “Rennaisance Revival” home covered in vines and filled with 1920s details. The 4-bedroom, 5-bath home has hand-painted ceilings and stained glass windows  as well as chef’s kitchen with inlaid limestone tile. Situated on a one-third acre lot, the home also has a pool and outdoor living area with barbeque.

Mid-Wilshire home values remain high at $913,000. The pricey L.A. neighborhood is a popular one with stars and is home to Antonio Banderas and Melanie Griffith, as well as Kathy Bates and David Schwimmer.

A Bottom of the American Real Estate Market

American real estate agents expect the US real estate market to be largely flat from 2011 to 2012.  Real estate agents predict that real estate values will be flat from 2011 to 2012, signaling a bottom to the real estate market or the end of the real estate bubble.  Given historically low interest rates as well as a bottoming of real estate values, real estate agents expect that the number of real estate transactions and new construction starts will increase slightly in 2012.   Additionally, real estate agents believe local economies are on the mend and we will see improvements in the economy.

Rental Nation?

With low real estate values, low interest rates and a recovering economy, American real estate agents believe that 2012 is a great time to purchase both single family and multi-family rental properties.  Real estate agents feel that single family homes and luxury homes represent great investment opportunities.   What did real estate agents think are the worst opportunities in the 2012 real estate market?  Due to the glut of inventory in the real estate market due to short-sales and foreclosures, new construction condominiums, new construction single family homes, and land for construction were rated as the worst investment opportunities.

QUESTION: Why do 1% of the agents make 99% of the money? Answer: They are making money NOW doing REOs and BPOs. Why aren’t you? Watch the FREE Agent REO Secrets video and grab the NEW FREE REO/ BPO Book. NOTICE: Free book guaranteed for the first 100 agents only.

What’s the Problem?  The Banks, Stupid!

When polled about the biggest challenges facing the real estate market and economy, real estate agents rated bank related issues the highest.  The biggest challenges were:  1) short sales, 2) ability to finance a new home purchase / loan qualifications, and 3) foreclosures.  The significant shadow inventory caused by short sales and foreclosures continues to drag on real estate values.  Though interest rates are at historical lows, increased loan qualifications are preventing first time home buyers from purchasing homes and current home owners from trading up into new homes.

We would have expected unemployment to be a greater concern to real estate agent.s  Persistently high unemployment was ONLY the fourth concern to real estate agents, which was surprising given how the poor economy and lack of jobs has dominated the news headlines for the past 24 months.

Local Opportunities, Local Problems

From a local market perspective, the 2012 ActiveRain real estate survey shows markets where real estate agents are significantly more optimistic and others in which real estate agents are concerned about 2012.  Based on our survey data, the ActiveRain real estate network has created a real estate confidence index and ranked the top real estate markets.

Below is a list of the TOP 10 and BOTTOM 10 real estate markets ranked by real estate agent confidence.

See real estate confidence in your local real estate market.

Key Trends in Top Markets

Low Cost of Living Markets Rule: Low interest rates and low cost of living have attracted buyers and relocations back into these markets.  Even though the general economy is not as robust as anyone would like, home buyers are adjusting lifestyles to find markets with low cost of living and reasonable housing prices.   Applicable markets: Ft. Myers, Austin, Boise, San Antonio, Denver, Dallas, Nashville, Houston, Salt Lake City

Invasion of the Snowbirds: Senior Housing & Second Homes:  Seniors and those planning for retirement have returned to the South.  Seniors are taking advantage of low priced housing inventory in the Sun Belt and low interest rates to buy a retirement home or a second home in a warmer climate.  Many of these buyers have saved for lifetime and 2012 represents a great opportunity to buy while prices and interest rates are low.   Seniors are targeting markets with low cost of living for retirement. Applicable Markets:  Ft Myers, Austin, San Antonio, Nashville, Miami, Salt Lake City

International Buyers: International home buyers are taking advantage of a weak dollar and low real estate values.  Florida is the biggest beneficiary of international buyer interest.  Miami is reporting strong home purchase market based on International cash transactions.

Important Notice: FREE REO/ BPO Training video and book now available. New for 2012 video will show you how to make money now doing BPO and listing REOs. Watch the FREE Video and download the FREE Book NOW. NOTICE: Free book guaranteed  for the first 100 agents only.

Deep in the Heart of Texas: No other state has FOUR major cities listed as growth markets.  So what is going on in Texas?  Texas represents exactly what every home buyer should be looking for: low cost of living, low cost housing, and job growth.   Throw in no state income tax and Texas is looking a lot more appealing than California.  Texas is attracting many large corporations to set up headquarters and operations in the state.   This is especially true in Austin.  Finally Texas has a great mix of technology companies AND energy companies (oil & gas and renewable energy).  See below.  Applicable Markets: Austin, Dallas, San Antonio, Houston

Technology and Energy Industries: Even in the current down market, technology and energy are growth industries driving job creation.  Though most think of San Francisco, Boston, New York and Seattle when we think of technology.  Secondary markets participating in technology and energy job growth are likely good real estate markets in 2012, due to low cost of living and high demand for skilled jobs.   Markets: Austin, San Antonio, Denver, Dallas, Houston, Salt Lake City

Investment Property: Low interest rates, low real estate values, and rising rents due to job growth is a great investment proposition.  A number of the lower cost of living and lower real estate value markets are reporting growth driven by investors coming into the market looking for deals.   Applicable Markets: Boise, Nashville, Salt Lake City, Austin, San Antonio

Key Trends in Poor Markets

High Cost of Living, High Real Estate Values: Though interest rates are historicly low, cities with expensive housing and high costs of living are suffering.  Tightened loan standards are preventing home buyers from entering the market.  Families are relocating to lower cost of living markets.  The high cities with high real estate values are also suffering the most from the shadow inventory of foreclosures and short sales.  Applicable markets: New York, Los Angeles, Chicago, San Diego

California: Californian cities benefited from the greatest price increases during the real estate bubble.  Simultaneously California has suffered the greatest in the downturn with the highest numbers of foreclosures and short sales in the country.  California is also facing a major budget deficit of $XBn leading to reductions in government services, increased class sizes and increased taxes. Applicable markets: Los Angeles, San Diego, Sacramento

High Shadow Inventory: Large numbers of foreclosures and short sales continue to depress real estate prices in many markets.  It will take several more years for many markets to stabilize.  Buyers continue to wait on the sideline for conditions to improve.  Applicable markets: Reno, Sacramento, Chicago, Springfield, Los Angeles, Philadelphia

High Unemployment: Persistently high unemployment without an economic catalyst is preventing home buyers from entering the market and locking sellers into their current homes.  Applicable markets: Philadelphia, Los Angeles, New York, Chicago, Sacramento, Reno

Reliance on the Finance Industry: Downsizing in the banking industry combined with reduction in Wall Street bonuses has caused challenges in markets reliant on banking,   Wall Street layoffs and a lack luster stock market have affected the highest cost markets like NYC most directly.  Applicable markets: New York , Chicago, Los Angeles, Philadelphia

O Canada!

Unlike the United States, Canadian real estate agents are fairly optimistic about 2012.  Canadian real estate agents believe that all core metrics of the Canadian real estate market and economy will be increasing in 2012.  Real estate values, real estate transactions, new construction starts, and the local economy are project to increase slightly in 2012.  Canada continues to have a strong banking system, a strong dollar, and low unemployment.  Interest rates are low, spurring international investment in Canada..  Canadian confidence continues to be high.  Job growth is being driven by the energy industry in Canada.

Few problems are facing the Canadian real estate market or the Canadian economy.  Inflation and gas prices are the only problems that the Canadian economy seems to be facing.  Unlike the US real estate market, Canada any issues with short sales or foreclosures.

Canadian real estate agents feel like single family homes, investment properties for rental and condominiums all represent good investment opportunities, due to historically low interest rates.  Interestingly, Canadian real estate agents are slightly LESS optimistic about real estate as investment opportunity when compared to American real estate agents

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(1) Q4 2011 S&P/Case-Shiller index

(2) RealtyTrac 2011 Year End Foreclosure Report

(3) NAR Re-Benchmarking of Home Sales

Next Tuesday, the December 10- and 20-City Composite Case Shiller Home Price Indices will be released. Zillow is predicting the non-seasonally adjusted 20-City Composite Home Price Index will decline by 4.0% on a year-over-year basis, while the 10-City Composite Home Price Index will show a year-over-year decline of 3.9%.

We’re anticipating the seasonally adjusted month-over-month change from November to December will be -0.6% and -0.5% for the 10- and 20-City Composite Home Price Indices, respectively.

QUESTION: Why do 1% of the agents make 99% of the money? Answer: They are making money NOW doing REOs and BPOs. Why aren’t you? Watch the FREE Agent REO Secrets video and grab the NEW FREE REO/ BPO Book.NOTICE: Free book guaranteed for the first 100 agents only.

“As we mentioned last time, the Case-Shiller indices are experiencing the bulk of 2011 home price depreciation in the last quarter of the year contrary to the trend displayed by the Zillow Home Value Index, where the pace of depreciation has slowed since the start of this year with only December showing a significant pick-up in the depreciation rate,” said Zillow Chief Economist Dr. Stan Humphries. “While home values are expected to fall further in 2012 with a definitive bottom probably a year away, home sales are expected to pick up pace in 2012 stabilizing home prices across the nation.”

The full forecast and further commentary can be found on the Zillow Real Estate Research page.

Since we began forecasting seven months ago, we have very accurately predicted the numbers of both indices. Results of previous forecasts can be found here.

Source: Wiki commons

Mary Kay Mansion
8915 Douglas Ave, Dallas TX
For sale: $3.3 million

The former home of the founder of Mary Kay Cosmetics is exactly the color you would expect: A soft shade of light pink. Mary Kay pink, to be exact.

Mary Kay Ash’s stucco mansion was designed in 1984 by Dallas Design Group and served as the businesswoman’s home and headquarters for entertaining Mary Kay consultants until 2000. Although Mary Kay did not design the home, touches of the makeup icon are inherent in many of the home’s features, according to listing agent Karen Luter.

Like, for instance, the solid pink quartz toilet and bath.

The beauty-product queen’s former home is back on the Dallas real estate market for $3.3 million. Mary Kay sold the home in 2000 in her efforts to downsize, and now the current owner, a Dallas physician, is following suit and hoping to move to the San Juan Islands. What’s unusual, notes Luter, is that both Mary Kay and the physician are successful entrepreneurs.

“It’s interesting that it [the home] was purchased by Mary Kay, who was a self-made woman, and it was sold to another self-made woman from humble beginnings,” said Luter.

Ideally, the next owner would follow the trend, but if the buyer happens to be a self-made man, Luter says she won’t discriminate.

QUESTION: Why do 1% of the agents make 99% of the money? Answer: They are making money NOW doing REOs and BPOs. Why aren’t you? Watch the FREE Agent REO Secrets video and grab the NEW FREE REO/ BPO Book. NOTICE: Free book guaranteed for the first 100 agents only.

Despite its pink-hued exterior, the interior of Mary Kay’s home has an elegance that belies the outside.

The home is built on a grand scale, with 40-foot-high ceilings and a foyer that includes busts of famous composers inserted in the ceiling. Highly detailed paneling and moldings appear throughout the house, as well as enormous floor-to-ceiling, beveled glass windows that look out to the terraced gardens.

Situated on an acre of land in the high-end Dallas neighborhood of Old Preston Hollow, the grounds of Mary Kay’s home were designed to mimic the San Simeon estate, William Hearst’s famous home in California.

The former Mary Kay home was redone by the current owner: New flooring, paint, updated kitchen and geothermal system for heating and cooling.

Mary Kay Cosmetics was founded by Mary Kay Ash in 1963. Frustrated when her employer promoted the man she trained rather than her, Mary Kay quit to write a book to help women succeed in business. Out of her research, she realized she had a business plan that would work for her makeup company. She began giving out pink Cadillacs to her top Mary Kay sellers in 1969.

In an age when many women were not encouraged to work outside the home, Mary Kay’s company was a significant opportunity. Luter shared an anecdote from one of the woman who worked with Mary Kay in the company’s early days:

Mary Kay told them (the consultants) to work really hard all day and then get home and sauté some onions in a skillet. As the fragrance fills the house, your husbands will think you’ve been cooking all day.”

A rule taking effect March 1 could hit you if you recruit salespeople to join your brokerage. The key is what you offer your recruits as part of your offer.

The Federal Trade Commission’s “Business Opportunity Rule” is about making sure that companies that offer a business opportunity in exchange for a fee are offering something legitimate and not just trying to separate you from your money. The FTC has a separate rule for franchise opportunities.

The typical target of the rule isn’t a company like a real estate brokerage; it’s a company like one that offers work-at-home opportunities or vending machine routes. In these cases, the people being recruited are offered a business opportunity  in exchange for a payment to the company. The vending machine company, for example, solicits people to place, service, and collect the income from vending machines in exchange for paying the company for the machines or a split of the income or both.

Overall, there’s a three-part test: 1) a solicitation by the company, 2) the offer of some type of business assistance, and 3) a required payment.

Although not the targets of the rule, real estate brokerages can get snagged in its disclosure requirements if the broker or recruiter reaches out to salespeople to join the brokerage, offers some type of assistance like a list of leads, and charges money, in this case the commission split.

The key part of the test for brokerages is the business assistance they provide. Assuming other parts of the rule apply, the rule is triggered when the solicitation promises “assistance” to the salesperson. What type of assistance? It could be offering the salesperson an Internet account, a list of customers or prospective home buyers, or otherwise promising to provide the salesperson all the “tools” needed to succeed in sales with the brokerage.

To be on the safe side, you want to  be sensitive to the tangible assistance you offer to salespeople in exchange for joining the brokerage. The rule is intended to cover companies that offer all the tools necessary to enter the business. That’s not the typical real estate brokerage approach, since salespeople tend to develop their own tools to enter real estate. But since the brokerage recruitment could be interpreted to meet the rule’s requirements, you want to look at what you’re offering recruits so you can decide, with your lawyer, whether you need to disclose your practices.

NAR Legal Afars has developed a summary of the rule and its potential impact on your business. Access the Business Opportunity Rule summary.

Optimism and hope returning to the housing market right in time for the spring market.

HARRIS REAL ESTATE UNIVERSITY  has been predicting/ expecting that Spring/ Summer 2012 would be the best in years.

Here are the positive signs:

1) Housing starts surprise increase (multi family NOT single family)

2) Low Rates

3) Delinquencies eased a bit but, the foreclosure pipeline is bigger than ever. Remember, there are CURRENTLY 6 Million homes in default, 11 Million underwater and if you include the ‘near underwater’ owners the real number of underwater owners is closer to 20 Million.

4) Record traffic to sites like Zillow, Trullia and Realtor.com. More traffic from buyers!

5) The least hit markets have already hit bottom and in many areas are actually…wait for it…wait for it…appreciating! Most of the US housing market will bounce along the bottom for 5-10 years.

QUESTION: Why do 1% of the agents make 99% of the money? Answer: They are making money NOW doing REOs and BPOs. Why aren’t you? Watch the FREE Agent REO Secrets video and grab the NEW FREE REO/ BPO Book. NOTICE: Free book guaranteed for the first 100 agents only.