The risk of home price reductions across the U.S. has been triggered by the year-over-year slowdown in the appreciation rate of home prices and a decrease in housing affordability, according to the PMI Mortgage Insurance Co. The forecasts are based on PMI’s Winter 2007 Market Risk Index report that lists out the communities which face the risk of home price decrease in the forthcoming years. Several communities are at risk of home price reductions but in areas that have strong economic fundamentals such as low unemployment rates, good job growth and incomes, the risk of home price declines is much lower.
Out of 50 largest metropolitan statistical areas (MSAs), 34 have shown an increase risk of home price declines. The PMI U.S. Market Risk Index (SM) average score increased consequently from 328 to 342, raising the risk of home price decline in the next 2 years to 34.2 %. The year-over-year appreciation rate has slowed down in 43 of the 50 largest MSAs. Click to read more >>
Weak Dollar Is a Huge Draw for Foreign Investors in US Real Estate
March 15th, 2011 — Las Vegas Mortgage Rates
The weak US dollar has been good news for real estate. Taking
advantage of the favorable conversion rates, foreign investors
are eagerly picking up real estate in major cities across the
US. Who is buying and where are they investing?
WHO IS INVESTING?
In recent years the US real estate market has seen the highest
amount of investing from foreign investors in Germany, Britain,
Canada, Japan and the Netherlands. Germany was the strongest
player in 2004 reporting over $4 billion in investments for that
year.
Where are they buying? In the past Europeans were drawn to East
Coast properties and Asians to the West Coast. Now, because of
the lower interest mortgages and a weak dollar, foreign
investors are picking up property, commercial and residential,
in all major US cities, including Chicago and Las Vegas.
CANADIANS AND AUSTRALIANS BENEFITING TOO
Even neighbors north of t...
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Buying Together Gay Special Considerations for the Glbt American Dream
March 14th, 2011 — Las Vegas Mortgage Rates
The American Dream of home ownership usually demands some rather peculiar legal considerations for GLBT couples, since the law doesn%26rsquo;t treat GLBT couples with the same respect and consideration reserved for those who can waltz into any 24-hour chapel of love in Las Vegas and get legally married.
But Sin City recently passed a new ordinance that may curtail the hours for all-night marriage chapels, so who knows what might happen next? Maybe one of these years legislation will also end the 24-hour ban on GLBT marriages.
In the meantime, those GLBT couples thinking of buying real estate together may want to make some unique preparations in terms of information gathering and fact-finding, to learn as much about the process %26ndash; and what to expect in the future %26ndash; as possible.
Here are three things to ponder before taking the plunge into your share of the American Dream of home ownership:
1) Sharing payments:
If you a...
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Some Of The Pitfalls Of Releasing The Equity In Your Own Home
March 13th, 2011 — Las Vegas Mortgage Rates
House prices have been rising fast all over the UK over the last couple of years. Many people are experiencing a significant increase in their overall wealth as a result. In the United States, this has been termed the ‘wealth effect’ with an increase in the value of people’s homes being recognised as creating the confidence among consumers to borrow and spend more money and thus fuel the economy. The very same trends can be witnessed in the UK where people are using the equity in their homes to pay for more and more luxuries.
Basic Concept of Home Equity
The way this works is quite simple. Supposing you take out a one hundred per cent mortgage and buy a home for one hundred thousand pounds. Since you borrowed one hundred thousand, and spent one hundred thousand, you will have a net equity of zero, since your assets (the house) are equal to your debts (the mortgage). However, with increasing house prices, it is common for such a house ...
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BUY NOW Why You Need to Purchase Your New Home Soon
March 12th, 2011 — Las Vegas Mortgage Rates
It is now 2010. You’re a first time, or maybe even a second-time, homebuyer and you still aren’t sure if buying a home is the right thing to do now. Maybe you won’t qualify for a mortgage. What if home prices haven’t quite bottomed out yet? Perhaps, you don’t know where to start. After all, buying a house is such a daunting task; perhaps you’re just not ready.
It just isn’t true!
I am confident the first four months of 2010 will prove to be a watershed event for homebuyers. Never in our history has a confluence of events occurred that creates a stronger “BUY” signal than today. Here are some reasons why you will be kicking yourself a year from now, wishing you had listened to everyone who advised you to purchase your new home.
First, the $8,000 first-time homebuyer tax credit will expire at the end of April. If you haven’t owned a house in the last three years, you are literally throwing money away by not buying. Th...
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Some Cities Suffering More Foreclosures than Others
March 11th, 2011 — Las Vegas Mortgage Rates
The rate of foreclosures continued to increase in the 3rd quarter in most of the 100 largest areas in the country. Stockton, California has the higher rate of foreclosures, at one for every 31 houses. This was a significant rise of 32 percent from the second quarter, and more than five times of last year’s rate during the third quarter. In Detroit, foreclosure listings increased by 92 percent from the second quarter of 2010. California Riverside-San Bernardo also increased by 39 percent in terms of foreclosures.
The cliché which says that it is all about location is proving to be true when it comes to foreclosure, which is crippling more and more families in the country. The rates in different cities are different from each other, with a handful of areas more hit than the other. California, Ohio and Florida cities hold 17 places in the top 25 foreclosure rates in metro area.
Other areas in the ten highest rates in foreclosures include Fort Lau...
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Market Conditions Continue to Vary Widely and Foreclosures at All Time High
March 10th, 2011 — Las Vegas Mortgage Rates
By and large, the riskiest markets at the moment are those that are experiencing the highest rates of foreclosures. Other factors that are contributing to problem areas include high rates of job loss and slow job growth. Markets in which the number of homes for sale is rapidly rising are also experiencing significant problems. Rapidly rising property values just a few short years ago is also proving to be a stumbling block for many markets.
During the housing boom these markets commonly experienced property value increases of two-fold and even three-fold in ma...
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More Expensive Mortgages on the Horizon
March 9th, 2011 — Las Vegas Mortgage Rates
If you’re buying an investment property, it must have positive cash flow. I know that sounds obvious, but you’d be surprised. Some properties only work if they’re purchased for cash, others for as little as 20% down. We can show you that you’ll probably make more money buying 5 properties with 20% down (or 4 with 25% down) than one for cash.
Our goal is to find properties for you that are move-in ready (maybe they need a fridge, washer and dryer) and that’s about it. Just add a tenant and start making a profit (sometimes there’s already a tenant in place!)
The list I provided last week was less than user-friendly. Today I’m presenting you with 36 properties in an easy-to-read (and understand) format – click HERE to view them and contact us if you’re interested in more information.
Today, I want to discuss the upcoming changes to the world of lending. I’ll warn you right now, it’s no...
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What Goes Up Must Come Down
March 8th, 2011 — Las Vegas Mortgage Rates
Newsmax.com
Home Prices Fall by 19.1% to 2002 Levels
Tuesday, May 26, 2009 3:25 PM
NEW YORK — National home prices are at levels not seen since the 2002 Winter Olympics, but a closer look at a housing index released Tuesday shows real estate is indeed local with some prices in certain cities falling to pre-2000 values.
The Standard %26 Poor’s/Case-Shiller National Home Price index reported home prices tumbled by 19.1 percent in the first quarter, the most in its 21-year history. Home prices have fallen 32.2 percent since peaking in the second quarter of 2006.
But in cities across the country home prices varied dramatically, depending on affordability, foreclosure activity and the local economy. The bottom may be in sight in some markets, but nationally home values are expected to decline _ though at a slower pace _ for the rest of the year.
‘By our estimation, the composite 20-city index is...
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75% of the metro areas facing huge foreclosures
March 7th, 2011 — Las Vegas Mortgage Rates
Problems for the homeowners continue to rise. A latest report shows that America’s 75% metro areas are struggling with a hike in the foreclosures and distressed selling. The leading states in the crusade of foreclosure are Arizona, California, Florida and Nevada. The worst is visible in Las Vegas. One interesting thing about these foreclosures is that lethal mortgages are no longer the cause of these foreclosures. As a matter of fact, mortgages are now replaced by acute unemployment. This is clearly visible in Las Vegas where it is no longer the bad loans which are causing foreclosures. It is unemployment that is causing defaults leading to foreclosures. The thing to worry about is that in June, 14.5% of the entire work force was unemployed. This was higher by 2.1% same period last year.
Some facts and figures:
One out of every 15 homeowners in Las Vegas faced foreclosure, which crowns the State with the first position in foreclosure race.
C...
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