The 2nd wave is on the horizon . . .

take a look at the charts from the attached site (click on article name above or paste below into your browser) then ask yourself, when is the bottom of the housing market likely to occur?


http://www.agorafinancial.com/5min/the-second-wave-of-the-housing-crisis-profiting-from-carbon-caps-us-is-out-of-money-lunch-with-ron-paul-and-more/

1st quarter 2009 home prices fall at fastest pace on record!

talk of a bottom is insane! Last quarter saw prices fall faster than during any quarter in history! click on title above or paste address below into your browser.

http://finance.yahoo.com/news/SampP-Home-prices-fall-by-apf-15345580.html?sec=topStories&pos=2&asset=&ccode=

What if you knew . . .

What if you knew, with absolute certainty, that the real estate correction we have seen nationwide thus far has not yet reached the midpoint?

What if you knew that prices would drop an additional 30%+ nationally from today's levels?

What if you knew that the powers that be on both Wall Street and Pennsylvania Avenue were running out of bullets, and that the bandaids they have used thus far simply aren't helping anything?

What if you really, truly wanted to help as many people as possible to not be crushed by this rapidly approaching reality?

What would you do?

How would you do it?

When would you start?

Why?

For many years I have had the privilege of working with some of the greatest real estate minds in N. America. Sad truth is even most of them have been unwilling to acknowledge this simple truth. So here it is, again, REAL ESTATE CORRECTION WILL CONTINUE NATIONWIDE UNTIL AT LEAST 2015, POSSIBLY LONGER. THE BOTTOM WILL THEREFORE OCCUR 6-12 MONTHS THEREAFTER AND WILL EXTEND FOR SEVERAL YEARS PRIOR TO A VERY SLOW AND CAUTIOUS RETURN TO APPRECIATION STARTING AROUND 2022/3.

You can continue to dismiss this, as many have for years. Unfortunately, all of those who have are now significantly worse off financially and more importantly they have harmed many of those they claim to care about, from friends and family to clients. Who are you harming by ignoring reality?

Eye of the Hurricane . . .

Remember back on March 24 of this year I listed a group of people who simply make sense? Well Barron's agrees, in fact here is something they have just published (click title of this article or cut and paste from below.)
According to Mike Morgan, we have only thus far seen the front half of the housing hurricane in FL, and as anyone with a bit of sense - yeah I know that's not many - knows FL has been the nation's crystal ball when it comes to real estate for almost the past decade.

http://online.barrons.com/article/SB124303112018248371.html

President points towards inevitable higher interest rates and higher tax rates . . .

click on title or paste below into your browser for full details . . .

http://www.businessinsider.com/obama-warns-of-unsustainable-deficits-and-spiraling-interest-rates-2009-5

Higher interest and higher tax rates coming, bet that helps home buyer demand!

It's getting better if you believe reports . . . you can't really be that stupid can you?

Last month more homes entered into the foreclosure process than during any month in history, up 32% nationwide from a year earlier. Here is the article, paste it into your browser. http://news.yahoo.com/s/ap/20090513/ap_on_bi_ge/us_foreclosure_rates

In one SW FL area one of every 57 homes went into foreclosure, just during the last month - OUCH! As we have seen time and again, South Florida has repeatedly proven to be a crystal ball throughout this ordeal, wonder what that means for the rest of us? Sad truth is that although both foreclosure notices and foreclosures themselves have been on the rise, quite significant rise at that, we are still routinely seeing borrowers across the country get to a point of being 6-36 months delinquent prior to lenders even beginning the process. Even with this reality approximately 70% of the properties foreclosed on nationwide over the past 12 months have not come back on the market yet as there are large incentives to lenders to not realize the inevitable losses (ie suspension of mark to market also apparently allows lenders to claim the $1M loan they foreclosed on was actually secured by a $1M property and they hold that property on their balance sheets as a $1M asset – HAHA!)

Rest assured, many more of your tax dollars will be wasted before market forces are allowed to run their course. I suppose reality is they aren’t really your tax dollars, we are waaaaay beyond that. They are actually your children’s, your grandchildren’s and your great grandchildren’s tax dollars, so why worry we’re Americans, nothing can harm us right?

Well, except for maybe the increasing interest rates our President expressed concerns about being inevitable recently. Hmmm, perhaps we should just keep on plugging along operating as we always have because the same approaches and strategies should work in this market and economy as in the past right? I mean do we really want or need to adjust our approach just because everything around us has changed?


PS with new initiative just announced to encourage more short sales and the enormous shadow inventory being held in limbo by lenders, what will happen as all that distressed property hits the market with ever increasing interest rates, stiffer loan qualification requirements, potential buyers worries about increasing tax rates, decreasing job security and the like? Oh nevermind, we're America nothing can harm us. Suppose I should just resume my Midwestern, good ole boy way of life, huh?

sad but true entertaining commentary on American economy

click on title above or cut and paste link below
tune back soon for more!


http://www.newsday.com/media/flash/2009-04/46217527.swf