Real Estate News 12.30.2013

Minimum wage to rise in 13 states on Jan. 1
“Starting January 1, minimum wage workers in 13 states and four cities will see higher paychecks.”

U.S. housing markets to watch in 2014
“Texas and California led recovery of the market in 2013. What are the next hot spots to watch for? Here are five cities to keep an eye on.”

5 biggest housing comebacks of 2013
“Six years later, the U.S. housing crash has grown more distant as the market continues to recover from record foreclosures and spiraling home prices. Here are five regions that experienced the most pronounced recoveries in 2013.”

Many Americans feel economy isn’t improving
“Despite a recent string of positive economic news, Americans say they aren’t feeling the improvements.”

Unemployment benefits for 1.3 million expire
“Michelle Marshall is one of the 1.3 million long-term unemployed Americans who is losing her jobless benefits.”

Pending Home Sales Edge Up in November
“WASHINGTON (December 30, 2013) – Pending home sales stabilized in November with a slight gain, according to the National Association of Realtors®. Monthly increases in the South and West offset declines in the Northeast and Midwest.”

Is Mortgage Market Deconsolidation Temporary or Here to Stay?
“In 1998, the top 10 mortgage lenders held around 40 percent of the market. By 2010, their share increased to nearly 80 percent; since then, it’s dropped down to around 60 percent.”

Even in Buyer’s Market, Homeownership Expected to Decline
“Zillow expects conditions next year to be a bit friendlier to homebuyers—but that doesn’t mean we’ll necessarily see more owner-occupied housing, experts at the real estate marketplace say.”

2013 in Review: The Consumer Financial Protection Bureau
“Mortgage industry commentators may argue (and they certainly have) about the Consumer Financial Protection Bureau’s (CFPB) performance over the last year, but one thing is certain: The bureau knows how to command headlines.”

Trulia Economist Sees 2014 as ‘Year of the Repeat Homebuyer’
“As prices continue rising in the new year—albeit at a slower pace—investors will begin to ease back from the purchase market, but repeat homebuyers will be there to pick up the slack, according to Trulia’s predictions for the housing market in 2014.”

Feature: New World Order
“The veterans of this business can remember when market conditions were “normal”—when REOs ran in the neighborhood of 150,000 a year, delinquency rates were just around 4 percent, and you only needed a credit score of 620 to qualify for a prime mortgage loan.”

Commentary: What’s in Store for Housing in 2014, Part 1
“Many economists and market observers have suggested the market is poised for continued growth as the recovery enters its third year, and there are positive elements in play that provide some reasons for optimism.”

Jobs, Population Growth, Low Prices Create Investment Opportunities
“Analysts at HomeVestors and Local Market Monitor say the formula for a nearly risk-free single-family investment opportunity is one part job growth, particularly in lower paying jobs, and one part population growth, mixed with relatively low home prices.”
The next article is from Christmas eve but I thought you may want to see it.

20 Cities with Biggest Foreclosure Discounts
“As the housing market continues to recover in 2014, finding a foreclosure deal is more important than ever to ensure you get the most bang for your buck and land a home with built-in equity. RealtyTrac has identified the top 20 U.S. cities with the deepest discounts still available on foreclosure homes, including several markets on both coasts, from the high end to the low end, and plenty in-between.”

Fannie Mae Reaches $591 Million Repurchase Agreement with Wells Fargo
“WASHINGTON, DC – Fannie Mae (FNMA/OTC) has reached a $591 million agreement with Wells Fargo to resolve repurchase requests on certain loans originated prior to 2009.  After adjustments for prior repurchases, Wells Fargo will pay Fannie Mae $541 million in the fourth quarter of 2013 and be released from repurchase liability for these loans, with certain exceptions. “

Fannie, Freddie give non-investor home buyers ‘first look’ period
“WASHINGTON — An important resource for first-time home buyers and others who find themselves in unfair competition with deep-pocket investors bearing cash just got better: The two biggest players in the mortgage market, Fannie Mae and Freddie Mac, are now giving non-investor shoppers 20-day exclusive rights to bid on and buy new listings they are selling.”

Nov. home sales fall to a 5-year low in Vegas
“The Las Vegas market turned into the comeback kid after investors flooded the city in the wake of the real estate bust.”

LPS: Home price increases slowed in October
“October proved to be a tepid month for home prices, with no state increasing more than a full percentage point, according to Lender Processing Services’ most recent U.S. Home Price Index report.”

Flagstar Bancorp reaches $10.8 million repurchase settlement
“Flagstar Bancorp (FBC), the holding company for Flagstar Bank, has entered into an agreement with Freddie Mac to resolve substantially all of the repurchase requests and obligations associated with loans originated between Jan. 1, 2000, and Dec. 31, 2008, reaching a total amount of $10.8 million, the company announced in a press release.”

New home sales and mortgage apps see growing divergence
“The November new home sales data from the U.S. Census Bureau includes “some surprisingly positive data points, and a continued divergence from the weekly purchasing applications trend as released by the MBA,” according to research from Compass Point Research & Trading.”

U.S. Stocks Little Changed as Home Sales Miss Estimates
“U.S. stocks were little changed, as the Standard & Poor’s 500 Index headed toward its biggest annual gain since 1997, after data showed contracts to purchase previously owned U.S. homes rose less than forecast in November.”

YEAR IN REVIEW: Stabilizer sums business scene in 2013
“One word: Stabilizer.
With its twists and turns, moments of trepidation, transition and glory, 2013 was a year Inland Southern California’s retail giants, small business, manufacturing companies, banks and real estate industry gained surer footing.”

Where did all the single family homes go? Half of foreclosed homes still occupied and big investors not reselling properties. Investors purchase $1 trillion in real estate since 2011.
“The real estate market has slim pickings for traditional buyers.  Funny thing that we have to use the “traditional” preface since the market is overrun with a hoard of investors.  I am seeing this with my own two eyes.  You are seeing it as well.  In most ordinary cases a rise in prices would be accompanied with some sort of rise in supply.  Yet this is no ordinary situation.  Scouring over a few reports I found that nearly half of foreclosed homes are still occupied.  In places like California and Miami this number is closer to 60 percent.  When these homes finally get fully repossessed, they are likely going to big money investors that end up holding on to the property, removing it completely from the market.  There is little doubt that investors are a big part of the market.  Since 2011 they have purchased over $1 trillion in real estate.  With razor thin inventory, this is a big deal.”

GURU IS NOT A FOUR-LETTER WORD -PART 1- THE TERM

Have you ever heard the term “guru” used in real estate blogs, articles or other posts on real estate communities and social media? I’m sure you have. But, have you EVER found ANY of them using the term in a positive manner? I never have, not a ONE! Typically, in its derogatory fashion the term guru is used to describe or identify someone who is really not truly knowledgeable about the real estate investing game, or maybe someone who basically “overcharges or scams” a new unwitting student to real estate investing/speculating. Most of the time the person writing or making the comment is trying to make a point, but instead of constructively referring to their own facts or supporting their own position or point of view with something concrete, they just site complaints of the many that decided to pay the “ridiculously over-inflated prices for basic real estate investing education” and move on to use a comparison between themselves (or someone they want to pump-up as the good guy) and the devious elusive “guru”.

The point is that anytime someone wants to make themselves look good, win public opinion and prop themselves up as the savior of the wannabe real estate investor community, all they have to do is taint the reputation of someone else teaching real estate by labeling them a guru. I’ve read so many real estate articles and posts where the title “guru” is used in a derogatory fashion I’m starting to think it has never had any other meaning but a derogatory one. I happen to respect and revere the term guru. But I keep seeing it in article after article, post after post especially by individuals trying to benefit from undeserved accolades (much as the real estate “gurus” they are trying to besmirch.) This is probably not the wisest method of trying to make an intelligent point, as it basically amounts to no more than demeaning or degrading the term “guru” and then applying it to whomever, or whatever the writer or speaker is trying to deface. But unfortunately, most folks buy it!

For the record, I must admit that over past years I’ve been guilty of making similar unwise and immature statements myself about a host of things. Honestly, I think we all do it, occasionally without regard for the damage we may cause to others or the impact we can have on someone else’s decision making. But when connected to real estate it’s become an epidemic!

For the sake of accuracy, let’s take a closer look at the true original meaning of this big bad term “Guru”. As I’m sure most of you already know, according to Merriam-Webster “guru” pronounced gu•ru noun ˈgu̇r-(ˌ)ü, ˈgü-(ˌ)rü also gə-ˈrü, is defined as

    : a religious teacher and spiritual guide in Hinduism

    : a teacher or guide that you trust

    : a person who has a lot of experience in or knowledge about a particular subject

“In Hinduism, a personal spiritual teacher. In ancient India, knowledge of the Vedas was transmitted through oral teaching from guru to pupil. The rise of the bhakti movement further increased the importance of gurus, who were often looked on as living embodiments of spiritual truth and were identified with the deity. They prescribed spiritual disciplines to their devotees, who followed their dictates in a tradition of willing service and obedience. Men or women may be gurus, though generally only men have established lineages.”

So actually the TRUE meaning of the term guru is pretty cool, and deciding to continue to sarcastically use it to demean someone we are basically trying to crush is extremely inappropriate.

I suppose the appropriate term to use for such an awful underhanded individual would be closer to “Charlatan” pronounced char•la•tan/ˈSHärlətən,ˈSHärlətn/ and defined as

Noun: charlatan; plural noun: charlatans

1.  A person falsely claiming to have a special knowledge or skill; a fraud.

Synonyms: quack, sham, fraud, fake, impostor, hoaxer, cheat, deceiver, double-dealer, swindler,      fraudster, mountebank.

YEA… THAT’S THE TICKET!

As for the actual title of guru, well I suppose anyone that has ever helped us in any way to see, learn or understand anything we wanted to master by explanation or actual example (even if the only thing we learned from them was that real estate is definitely not for us) then I’d say the person we received that wonderful gift from could, in fact, be considered our guru… whether we paid them or not! 

Oh, by the way, I LOVE GURUS!  😉