The Real-estate Web site Zillow.com says it will be cutting its work force by 25% to cut expenses and gird against the ailing U.S. economy.
A Zillow spokeswoman says the company plans to lay off the employees Tuesday, with most of the cuts in Seattle, where the company is based. She says about 75% of the employees will remain after the cuts.
Chief Executive Rich Barton says the company has "sizable cash reserves" but determined the cuts were needed to help it weather the economic downturn.
Zillow, launched in 2006, hosts real estate listings and helps visitors find competitive mortgage rates, among other features. Its revenues come from online ad sales.
Saturday, October 18, 2008
Friday, October 17, 2008
Canadians searching for hot deals on US properties
With the sub-prime housing crisis casting a dark a shadow over the United States, many Canadians are searching for hot deals on American properties.
But is it the right time to invest in U.S. real estate? And just because you can bargain shop, can you really afford all that goes with owning foreign property?
These are the top questions TD Waterhouse senior vice-president Patricia Lovett-Reid has been getting.
Before investing your dollars into a U.S. property get the complete answers to these tough questions:
1. Getting a fix on prices: Quoting the U.S. National Association of Realtors, Lovett-Reid says housing prices have declined an average eight per cent from a year ago with a current median price of about $200,000. But, she stresses, the situation varies from state to state.
2. Ready to negotiate: Negotiating the tangled web of American real estate investment isn't easy. Unlike investing in Canada, she says purchasing property south of the border can be risky and confusing.
It's important to map out the cost structure in U.S. dollars, especially considering the loonie will likely depreciate against the U.S. dollar over the next year.
"When we look at where the dollar is now, we expect it to depreciate closer to the 95-cent level in 2008 -- and 92-cent level in 2009. So that can have an impact."
3. Research plus: She also suggests doing considerable research on available opportunities and vacationing in the location to make sure it's the right property. Lovett-Reid advises people to ask themselves a few questions:
-- Why do I plan to buy this real estate?
-- Is this an portfolio investment or is it going to be for personal use?
-- Will this help you fulfil your goal expectations -- because right now there is a tendency to buy on impulse.
4. Cool off: People currently searching must give themselves a cooling-off period to evaluate the reasons they are tempted to buy the property.
The extra cost of upkeep, security, utilities, and other expenses -- whether the property is occupied or not -- must also be calculated into the overall cost.
Because emotions can come into play, she says it's important to note "there is no real rush" to buy because the U.S. has yet to bounce back from the sub-prime meltdown.
5. Waiting may be best: "It still may pay you to wait even though we are in a very depressed market," she says. If people were planning to move down soon, then the timing to buy is good.
6. Cash buyers: because getting mortgages can be difficult, given the massive number of foreclosures and defaults on loans in the past year.
"I think if everyone is expecting to come down here and find gold, it's not going to happen," says Kafin.
"It's like the stock market, there's no guarantees. But if you work with a company that's knowledgeable and serious about what they are doing and they understand the economics of the market, then you are really going to be OK."
7. Forget about financing?: Make sure you use a Realtor like www.843Realtor.com that can get you to a croos border banker and help make you financing a breeze.
8. High cost of insurance: High insurance premiums can further complicate a property purchase, with issues revolving around "acts of nature" that affect homes and condos located in hurricane-prone zones such as Florida -- or Texas properties that are suspectible to flooding, and earthquakes and mud slides in California.
9. Disaster insurance: So to ensure they are properly protected, homeowners augment their coverage by purchasing supplemental in- surance from agencies such as Florida Citizens Insurance, which deal specifically with high-risk properties. Instead Canadians should look at Myrtle Beach South Carolina with a low hurricane imact zone.
Many variables will determine the ultimate cost, including the type of property, the location, the neighbourhood, and previous claims such as water damage, which can result in higher premiums.
10. Protection against thieves, fire: In essence, Worters says, buyers should have four different policies.
In addition to the regular homeowner's insurance coverage that covers theft and fire and buying the high-risk packages from Florida Citizens, which covers wind damage, the owner would also have to buy flood insurance, available through the federal government because the other two polices are "limited."
11. Downside of no insurance: Those who skimp on such insurance, or don't know about it, can end up like some of the victims in Louisiana in August 2005, she adds.
Condo and co-op buyers will typically have a master policy which pays for the structure of the building.
But, she stresses, the owner must make sure they have enough insurance to cover the cost to rebuild that condo, and therefore may need to purchases extra policies for full protection.
12. Consulting tax specialists: She also suggests having a tax specialist who knows how to deal on both sides of the border, to optimize your tax filing. "The list goes on of what you have to do here," says Lovett-Reid.
Financial advisers in Canada will help clients crunch numbers, and see whether purchasing property in the U.S. is affordable to them.
"Ask the tough questions of the people you are going to be working with," says Lovett-Reid. "But almost more importantly, ask them of yourself."
Call Toll Free 888-935-8862 and ask a Myrtle Beach Real Estate Company www.843Realtor.com
But is it the right time to invest in U.S. real estate? And just because you can bargain shop, can you really afford all that goes with owning foreign property?
These are the top questions TD Waterhouse senior vice-president Patricia Lovett-Reid has been getting.
Before investing your dollars into a U.S. property get the complete answers to these tough questions:
1. Getting a fix on prices: Quoting the U.S. National Association of Realtors, Lovett-Reid says housing prices have declined an average eight per cent from a year ago with a current median price of about $200,000. But, she stresses, the situation varies from state to state.
2. Ready to negotiate: Negotiating the tangled web of American real estate investment isn't easy. Unlike investing in Canada, she says purchasing property south of the border can be risky and confusing.
It's important to map out the cost structure in U.S. dollars, especially considering the loonie will likely depreciate against the U.S. dollar over the next year.
"When we look at where the dollar is now, we expect it to depreciate closer to the 95-cent level in 2008 -- and 92-cent level in 2009. So that can have an impact."
3. Research plus: She also suggests doing considerable research on available opportunities and vacationing in the location to make sure it's the right property. Lovett-Reid advises people to ask themselves a few questions:
-- Why do I plan to buy this real estate?
-- Is this an portfolio investment or is it going to be for personal use?
-- Will this help you fulfil your goal expectations -- because right now there is a tendency to buy on impulse.
4. Cool off: People currently searching must give themselves a cooling-off period to evaluate the reasons they are tempted to buy the property.
The extra cost of upkeep, security, utilities, and other expenses -- whether the property is occupied or not -- must also be calculated into the overall cost.
Because emotions can come into play, she says it's important to note "there is no real rush" to buy because the U.S. has yet to bounce back from the sub-prime meltdown.
5. Waiting may be best: "It still may pay you to wait even though we are in a very depressed market," she says. If people were planning to move down soon, then the timing to buy is good.
6. Cash buyers: because getting mortgages can be difficult, given the massive number of foreclosures and defaults on loans in the past year.
"I think if everyone is expecting to come down here and find gold, it's not going to happen," says Kafin.
"It's like the stock market, there's no guarantees. But if you work with a company that's knowledgeable and serious about what they are doing and they understand the economics of the market, then you are really going to be OK."
7. Forget about financing?: Make sure you use a Realtor like www.843Realtor.com that can get you to a croos border banker and help make you financing a breeze.
8. High cost of insurance: High insurance premiums can further complicate a property purchase, with issues revolving around "acts of nature" that affect homes and condos located in hurricane-prone zones such as Florida -- or Texas properties that are suspectible to flooding, and earthquakes and mud slides in California.
9. Disaster insurance: So to ensure they are properly protected, homeowners augment their coverage by purchasing supplemental in- surance from agencies such as Florida Citizens Insurance, which deal specifically with high-risk properties. Instead Canadians should look at Myrtle Beach South Carolina with a low hurricane imact zone.
Many variables will determine the ultimate cost, including the type of property, the location, the neighbourhood, and previous claims such as water damage, which can result in higher premiums.
10. Protection against thieves, fire: In essence, Worters says, buyers should have four different policies.
In addition to the regular homeowner's insurance coverage that covers theft and fire and buying the high-risk packages from Florida Citizens, which covers wind damage, the owner would also have to buy flood insurance, available through the federal government because the other two polices are "limited."
11. Downside of no insurance: Those who skimp on such insurance, or don't know about it, can end up like some of the victims in Louisiana in August 2005, she adds.
Condo and co-op buyers will typically have a master policy which pays for the structure of the building.
But, she stresses, the owner must make sure they have enough insurance to cover the cost to rebuild that condo, and therefore may need to purchases extra policies for full protection.
12. Consulting tax specialists: She also suggests having a tax specialist who knows how to deal on both sides of the border, to optimize your tax filing. "The list goes on of what you have to do here," says Lovett-Reid.
Financial advisers in Canada will help clients crunch numbers, and see whether purchasing property in the U.S. is affordable to them.
"Ask the tough questions of the people you are going to be working with," says Lovett-Reid. "But almost more importantly, ask them of yourself."
Call Toll Free 888-935-8862 and ask a Myrtle Beach Real Estate Company www.843Realtor.com
Thursday, October 16, 2008
County schools penny tax bail out
Residents in Horry County will soon vote in the upcoming election on whether to approve a local sales tax proposed by the Horry County School District.
On Wednesday night, the Myrtle Beach Area Chamber of Commerce hosted a forum for people to learn more about the penny tax. Turnout was low since many residents were not aware of the time and place for the meeting. Only one man showed up to hear what chamber officials, as well as district officials, had to say about the new proposal.
The biggest selling point, and what most call an advantage, is that the penny tax would cut Horry County residents' property taxes. The district says property taxes would decrease to 10 mills from the current 28 mills by 2010.
"This is what we need," said the lone attendee, Tom Pegram.
It seems the Chamber failed to address the major concerns that many resident have about the penny tax. Many residents see this penny tax much like the recent penny road tax failures and are skeptical about its success. Residents are concerned the tax will be used to help developers that have failed to plan the new development Carolina Station. Carolina Station will be a new large development laking the School system to handle the increase in population. The County has failed to demand developers to cure this problem prior to approval of the construction. This area of the County has been given a free ride from becoming its own special tax district to handle the new schools system requirements. That leaves all residents of the county to pay for the new school additions for a region of the county that most resident will never see. It is these concerns that have many residents ready to defeat a tax that they feel will never help the overcrowding issues that need to be addressed. The County continues to create new problems and throws out emergency plans to "bail out" continued failures from the improper and inadequate planning from the County.
The chief construction officer for Horry County schools, says without the penny tax, much-needed expansion and upkeep in schools would continue to be funded through property taxes.
The new "penny" would generate as much as $1 billion over its 15-year lifetime. Rodelsperger said as much as 60% of the generated revenue would be paid for by non-residents.
The projected $1 billion tax would be divided up in the following manner; 80 percent would go to Horry County schools. The remaining 20% would be split between Coastal Carolina University and Horry-Georgetown Technical College, with the larger majority going to CCU.
For more information on the penny tax, visit http://www.horrycountyschools.net/UserFiles/Servers/Server_743372/File/About%20Us/penny_flyer2008_RGB.pdf
On Wednesday night, the Myrtle Beach Area Chamber of Commerce hosted a forum for people to learn more about the penny tax. Turnout was low since many residents were not aware of the time and place for the meeting. Only one man showed up to hear what chamber officials, as well as district officials, had to say about the new proposal.
The biggest selling point, and what most call an advantage, is that the penny tax would cut Horry County residents' property taxes. The district says property taxes would decrease to 10 mills from the current 28 mills by 2010.
"This is what we need," said the lone attendee, Tom Pegram.
It seems the Chamber failed to address the major concerns that many resident have about the penny tax. Many residents see this penny tax much like the recent penny road tax failures and are skeptical about its success. Residents are concerned the tax will be used to help developers that have failed to plan the new development Carolina Station. Carolina Station will be a new large development laking the School system to handle the increase in population. The County has failed to demand developers to cure this problem prior to approval of the construction. This area of the County has been given a free ride from becoming its own special tax district to handle the new schools system requirements. That leaves all residents of the county to pay for the new school additions for a region of the county that most resident will never see. It is these concerns that have many residents ready to defeat a tax that they feel will never help the overcrowding issues that need to be addressed. The County continues to create new problems and throws out emergency plans to "bail out" continued failures from the improper and inadequate planning from the County.
The chief construction officer for Horry County schools, says without the penny tax, much-needed expansion and upkeep in schools would continue to be funded through property taxes.
The new "penny" would generate as much as $1 billion over its 15-year lifetime. Rodelsperger said as much as 60% of the generated revenue would be paid for by non-residents.
The projected $1 billion tax would be divided up in the following manner; 80 percent would go to Horry County schools. The remaining 20% would be split between Coastal Carolina University and Horry-Georgetown Technical College, with the larger majority going to CCU.
For more information on the penny tax, visit http://www.horrycountyschools.net/UserFiles/Servers/Server_743372/File/About%20Us/penny_flyer2008_RGB.pdf
real estate business truly is amazing
The real estate business truly is amazing. No matter how long you’ve been involved in it, the same simple truths seem to present themselves year to year, and by default, we are bound to make some of the same old mistakes from time to time. Maybe the most significant of these truths is the importance of qualifying and listening to your clients.
Here are a few embarrassingly recent stories about my mistakes in not listening to and evaluating my client’s plan. Hopefully they will help to illustrate this lesson and prevent other agents from following suit.
Recently, a personal client called and inquired about the prospect of listing their home for sale. Any real estate agent knows the excitement a call like this can bring, especially when the subject property is of considerable value. Fellow real estate agents also can relate to the excitement-induced mental lapse that can occur from these special events causing ones brain to temporarily disengage from gear.
Being that this client would be one of our favorite sell/buy clients (both sell and buy a home with us), the dollar signs were already beginning to permeate the brain before the conversation had really even started. Experience has taught me that this point should be the most critical in sizing up the ability, need, and desire of my prospect and this situation would prove no different.
It turns out that my client had a fantastic, albeit unrealistic, plan to sell his home at top of the market pricing, buy a home of almost similar specifications at today’s discount prices, and use the difference to fund his retirement! I knew from the beginning that it just isn’t realistic to conduct such a win-win-win orchestration but was too excited, and maybe a little too scared, to confront him. We all know how this turns out so there really is no point in rehashing the details.
The point is that had I listened better and had the confidence to point out the faulty plan without insulting its creator, I would have saved lots of time, money, energy, and spirit. As it is now, all we have to show for our efforts is an uncomfortable relationship in need of some mending.
Very shortly thereafter, a new client phoned about the prospect of buying one of my listings after I listed and sold her house. Great! Another sell/buy client and a chance to sell this “well seasoned” listing! In my excitement, I prepared all the listing paperwork, the purchase agreement, and spent considerable time agonizing over a comprehensive market analysis.
Only then did I really sit down with the prospect and go over their plan of action. When all the smoke had cleared, another overly ambitious plan was all that remained and the details revealed that this person wanted to trade up houses without putting down any cash, increasing their monthly payment, or sacrificing any amenities. I’m still working on how to have my cake and eat it too so this clients dilemma will have to take second priority.
Needless to say, as real estate agents, our role is incredibly complex as it relates to the skills, experience, and knowledge that it takes to be successful. Possibly the most important role we can play is that of coach. We should listen, not pretend to listen or fake interest, but really listen to our clients and their ideas. We guide our clients, not sugar coat and posture up a poorly developed plan destined to fail, but compassionately hit them right between the eyes (figuratively of course) when their plans are doomed for failure.
Take some time right up front to go over your clients plan with a degree of skepticism before even setting up a home search or preparing that CMA. In the end, the solid buyers and sellers, or rather, buyer and sellers with solid plans, will reveal themselves and the rest will at least leave with an understanding of your professionalism and respect for their time.
Of course, many will leave you and go elsewhere to find somebody saying what they want to hear, but this is ok, let your fiercest competitor try to work the plan of these clients and you just concentrate on working yours!
Here are a few embarrassingly recent stories about my mistakes in not listening to and evaluating my client’s plan. Hopefully they will help to illustrate this lesson and prevent other agents from following suit.
Recently, a personal client called and inquired about the prospect of listing their home for sale. Any real estate agent knows the excitement a call like this can bring, especially when the subject property is of considerable value. Fellow real estate agents also can relate to the excitement-induced mental lapse that can occur from these special events causing ones brain to temporarily disengage from gear.
Being that this client would be one of our favorite sell/buy clients (both sell and buy a home with us), the dollar signs were already beginning to permeate the brain before the conversation had really even started. Experience has taught me that this point should be the most critical in sizing up the ability, need, and desire of my prospect and this situation would prove no different.
It turns out that my client had a fantastic, albeit unrealistic, plan to sell his home at top of the market pricing, buy a home of almost similar specifications at today’s discount prices, and use the difference to fund his retirement! I knew from the beginning that it just isn’t realistic to conduct such a win-win-win orchestration but was too excited, and maybe a little too scared, to confront him. We all know how this turns out so there really is no point in rehashing the details.
The point is that had I listened better and had the confidence to point out the faulty plan without insulting its creator, I would have saved lots of time, money, energy, and spirit. As it is now, all we have to show for our efforts is an uncomfortable relationship in need of some mending.
Very shortly thereafter, a new client phoned about the prospect of buying one of my listings after I listed and sold her house. Great! Another sell/buy client and a chance to sell this “well seasoned” listing! In my excitement, I prepared all the listing paperwork, the purchase agreement, and spent considerable time agonizing over a comprehensive market analysis.
Only then did I really sit down with the prospect and go over their plan of action. When all the smoke had cleared, another overly ambitious plan was all that remained and the details revealed that this person wanted to trade up houses without putting down any cash, increasing their monthly payment, or sacrificing any amenities. I’m still working on how to have my cake and eat it too so this clients dilemma will have to take second priority.
Needless to say, as real estate agents, our role is incredibly complex as it relates to the skills, experience, and knowledge that it takes to be successful. Possibly the most important role we can play is that of coach. We should listen, not pretend to listen or fake interest, but really listen to our clients and their ideas. We guide our clients, not sugar coat and posture up a poorly developed plan destined to fail, but compassionately hit them right between the eyes (figuratively of course) when their plans are doomed for failure.
Take some time right up front to go over your clients plan with a degree of skepticism before even setting up a home search or preparing that CMA. In the end, the solid buyers and sellers, or rather, buyer and sellers with solid plans, will reveal themselves and the rest will at least leave with an understanding of your professionalism and respect for their time.
Of course, many will leave you and go elsewhere to find somebody saying what they want to hear, but this is ok, let your fiercest competitor try to work the plan of these clients and you just concentrate on working yours!
Wednesday, October 15, 2008
Next Myrtle Beach biker meeting October 22 at 5:00 p.m
Many bikers packed county council chambers for another meeting to deal with the recent movement to curb bike ally,s in the County. Six people of the who people who spoke during public input were three in favored of the rallies and three opposed the rallies.
Horry County Council hasn't taken a stand either way when it comes to the rallies. They've are trying to explore ways to deal with the congestion, noise, and unruly behavior.
The commitee first met a couple of weeks ago and asked county staff, including department heads from public safety, zoning and code enforcement, to come up with recommendations for the committee to consider.
In the staff's briefing memorandum they wrote in their conclusion,
"Staff proposes reconfiguring the temporary vending overlays to limit vending east of the Waccamaw River and to encourage vending in the western portion of the county. Staff also proposed amending the Noise Ordinance to require a special event permit for all outdoor entertainment, contests and shows."
First, on the issue of altering vending operations, the staff recommended, among other things to:
Limit vending locations east of the Waterway to shopping malls/centers ...."
Limit the number of permits issued east of the Waterway to 50 permits north of Hwy 501 and 50 permits south of Hwy 501
Increase permit price to $1500
The number of total permits issued would drop to 400, and the duration of the permits would be reduced to eight days, down from ten days
To further help congestion, staff proposed several traffic management options, including utilizing traffic barricades in the following areas:
US 17 Business in the Murrells Inlet area
US 17 Business in the area around the Harley-Davidson Dealership
US 17 in the Restaurant Row area
Highway 9 in the vicinity of HB Spokes
In all cases, the barricades would be used to prevent traffic from turning left from both directions. They would also prevent pedestrian traffic from crossing from one side of the road to the other.
County staff also suggested the council could amend the noise ordinance special event permit section to "prohibit commercial outdoor entertainment and other activities including, but not limited to, all contests, stunt shows, burn-out pits, motorcycle/car washes and concerts unless the issuance of a special event permit has been approved by the public safety committee."
The staff pointed out that the amendment would not only target the rallies but also events like the Blue Crab Festival, car shows, etc.
If someone does apply for a special events permit, they might be required to receive endorsement of certain county agencies and also provide beefed up security, better lighting and medical personnel.
After the recommendations were explained, many of the bikers in attendance seemed pleased.
The committee and members of the public offered input to the ideas, and the staff will take those, tweak the plans and present any updated suggestions at the committee's next meeting which is scheduled for October 22 at 5:00 p.m.
Horry County Council hasn't taken a stand either way when it comes to the rallies. They've are trying to explore ways to deal with the congestion, noise, and unruly behavior.
The commitee first met a couple of weeks ago and asked county staff, including department heads from public safety, zoning and code enforcement, to come up with recommendations for the committee to consider.
In the staff's briefing memorandum they wrote in their conclusion,
"Staff proposes reconfiguring the temporary vending overlays to limit vending east of the Waccamaw River and to encourage vending in the western portion of the county. Staff also proposed amending the Noise Ordinance to require a special event permit for all outdoor entertainment, contests and shows."
First, on the issue of altering vending operations, the staff recommended, among other things to:
Limit vending locations east of the Waterway to shopping malls/centers ...."
Limit the number of permits issued east of the Waterway to 50 permits north of Hwy 501 and 50 permits south of Hwy 501
Increase permit price to $1500
The number of total permits issued would drop to 400, and the duration of the permits would be reduced to eight days, down from ten days
To further help congestion, staff proposed several traffic management options, including utilizing traffic barricades in the following areas:
US 17 Business in the Murrells Inlet area
US 17 Business in the area around the Harley-Davidson Dealership
US 17 in the Restaurant Row area
Highway 9 in the vicinity of HB Spokes
In all cases, the barricades would be used to prevent traffic from turning left from both directions. They would also prevent pedestrian traffic from crossing from one side of the road to the other.
County staff also suggested the council could amend the noise ordinance special event permit section to "prohibit commercial outdoor entertainment and other activities including, but not limited to, all contests, stunt shows, burn-out pits, motorcycle/car washes and concerts unless the issuance of a special event permit has been approved by the public safety committee."
The staff pointed out that the amendment would not only target the rallies but also events like the Blue Crab Festival, car shows, etc.
If someone does apply for a special events permit, they might be required to receive endorsement of certain county agencies and also provide beefed up security, better lighting and medical personnel.
After the recommendations were explained, many of the bikers in attendance seemed pleased.
The committee and members of the public offered input to the ideas, and the staff will take those, tweak the plans and present any updated suggestions at the committee's next meeting which is scheduled for October 22 at 5:00 p.m.
When will the bottom of the real estate market
The U.S. economy is under going the worst economic chaos since the Great Depression as a result of the growing global financial crisis. And now it seems to be the #1 question everybody in America is asking: When will the bottom of the real estate market occur?
By now just about everyone realizes that the depressed housing market sent America into its financial mess. The foreclosure epidemic has topped 3-million foreclosures nationwide.
Housing Predictor correctly forecast America's real estate depression, the foreclosure epidemic and the mortgage crisis and now forecasts the bottom of the nation's real estate market. The bottoms of real estate markets don't happen all at once like financial markets do, but usually take many months and even sometimes years to undergo.
As government leaders from around the World met in Washington D.C., Housing Predictor researchers gathered more data from hundreds of independent sources across the nation to search for the answer on when America's housing markets might stabilize. The White House and other branches of the Federal government are in emergency management mode in order to find a solution to the economic crisis.
As the White House finalizes its plan with the Treasury, Housing Predictor delves into the crisis and issues its forecast for the bottom of the housing market, and perhaps even more importantly reviews when things might be looking up in real estate. Housing Predictor forecasts more than 250 local housing markets in all 50 states, and keeps visitors up to date on changing market conditions and real estate news.
Most local housing markets throughout the nation are still working through their downturns and won't see falling prices flatten until at least sometime in 2009. Last April Housing Predictor forecast the increase in home sales as a result of lower prices and the epidemic of foreclosure properties listed for sale. Sales picked-up in late summer and are forecast to increase more with additional interest rate cuts by the Fed.
By now just about everyone realizes that the depressed housing market sent America into its financial mess. The foreclosure epidemic has topped 3-million foreclosures nationwide.
Housing Predictor correctly forecast America's real estate depression, the foreclosure epidemic and the mortgage crisis and now forecasts the bottom of the nation's real estate market. The bottoms of real estate markets don't happen all at once like financial markets do, but usually take many months and even sometimes years to undergo.
As government leaders from around the World met in Washington D.C., Housing Predictor researchers gathered more data from hundreds of independent sources across the nation to search for the answer on when America's housing markets might stabilize. The White House and other branches of the Federal government are in emergency management mode in order to find a solution to the economic crisis.
As the White House finalizes its plan with the Treasury, Housing Predictor delves into the crisis and issues its forecast for the bottom of the housing market, and perhaps even more importantly reviews when things might be looking up in real estate. Housing Predictor forecasts more than 250 local housing markets in all 50 states, and keeps visitors up to date on changing market conditions and real estate news.
Most local housing markets throughout the nation are still working through their downturns and won't see falling prices flatten until at least sometime in 2009. Last April Housing Predictor forecast the increase in home sales as a result of lower prices and the epidemic of foreclosure properties listed for sale. Sales picked-up in late summer and are forecast to increase more with additional interest rate cuts by the Fed.
$300 billion to keep Americans in their homes
John McCain has hinted that he plans to reveal his economic package soon in an effort to keep pace and perhaps counterbalance the Barack Obama economic proposal. There's one thing that struck me as odd, in this era of evaporating jobs and oncoming Depression. The McCain proposal hints at calls for using $300 billion of the $700 billion financial bailout package to keep Americans in their homes, stop declining housing values, and stabilize the financial markets.
Indeed the decline in real estate has devastated the financial markets and they've already gotten their bailouts in order to keep the credit markets primed with cash to avoid another freeze-up.
But in an era as we've been in the past ten years where, as Ross Perot so bluntly called it, "the great sucking sound" of disappearing jobs has gone from background din to deafening alarm. And McCain has no plan to change that any time soon.
Devaluation of real estate is inevitable. This is a hard pill that America is going to be force-fed, but is nevertheless necessary if we wish to survive in the "flat earth" economy. It's not the only thing that must devalue in price and cost, but it's one of the most critical.
As we've noticed rather clearly, especially during the George W. Bush era where added tax incentives accelerated the pace, business is in love with cheap labor - the cheaper, the better. It initially started with manufacturing and labor-oriented jobs, but has expanded to accounting, computer programming and even financial and service-industry jobs. Everyone wants a bargain, and no one loves it more than business executives and Wall Street investors. Cheaper costs mean more profit.
One of the primary reasons jobs fly overseas is due to this new awareness of a plethora of cheap labor. Even if it doesn't produce as Americans would, or end up as good quality as what we may do domestically, the cost differential more than makes up for it. It's also helped keep what jobs below the executive level that are left in the U.S. more bargain-priced than ever - even in the face of rampant cost-increases in everything.
Yet even with our fixed incomes for most of America, the bottom line is still more attractive by going cheaper and going overseas. We in America cannot compete with that due to our overly high cost of living. While a $9 an hour job in India, Indonesia or China may provide a very attractive standard of living and draw an incented workforce, in America it guarantees the individual will be part of a burgeoning working underclass with shrinking living standards and increased difficulties competing with other countries in this flat-earth economic paradigm.
Housing prices, as with food or utilities are one of those indispensable mandatory costs for the global workforce, no matter which country you live in. It doesn't take a rocket scientist to determine that American real estate is vastly higher than the very countries we now must duel with over diminishing work.
One exacerbating problem during this time of disappearing jobs was that many Americans turned to individual investing - flipping real estate - in the midst of Bush's "Economic Recovery." They made a handsome profit, providing cushion for the economic and employment uncertainty for a time. But like all pyramid schemes, it reached its saturation point. In the wake of this, we've experienced for some time a pricing over-escalation and a painful correction on real estate based on typical American standards and prices.
But once this reaches what were the pricing norms ten or fifteen years ago, the question begs: will there be jobs sufficient and plentiful enough to renew a housing boom? The answer to that will be no.
Until we in America reach cost levels similar to those of China, India or other third-world countries we are now mandated to compete with for jobs, America will face three choices. Either accept job insecurity (which will go where the wages and wage-earner costs are cheapest), acquiesce to a constant stagflated period where wages will be sub-par to bring us to what we've been accustomed to over the past decades, or give up on the globalizing workforce and retain jobs in America with the attendant cost increases. Corporations giving up profit are as likely as crack-heads giving up crack. We will have to look to one of the first two options.
Either American living standards must continue eroding at a shocking pace, or the costs of these living standards must come down accordingly in order to give American workers a chance to compete for jobs.
As things stand, McCain wants to artificially continue propping up real estate prices. This guarantees American jobs with livable American-level wages will never be able to compete with flat-earth, globalized workforces. For American wages to remain the same or deflate, and for jobs to stop evaporating before our eyes, costs must come down. And not just for housing prices, but for all essentials.
Indeed the decline in real estate has devastated the financial markets and they've already gotten their bailouts in order to keep the credit markets primed with cash to avoid another freeze-up.
But in an era as we've been in the past ten years where, as Ross Perot so bluntly called it, "the great sucking sound" of disappearing jobs has gone from background din to deafening alarm. And McCain has no plan to change that any time soon.
Devaluation of real estate is inevitable. This is a hard pill that America is going to be force-fed, but is nevertheless necessary if we wish to survive in the "flat earth" economy. It's not the only thing that must devalue in price and cost, but it's one of the most critical.
As we've noticed rather clearly, especially during the George W. Bush era where added tax incentives accelerated the pace, business is in love with cheap labor - the cheaper, the better. It initially started with manufacturing and labor-oriented jobs, but has expanded to accounting, computer programming and even financial and service-industry jobs. Everyone wants a bargain, and no one loves it more than business executives and Wall Street investors. Cheaper costs mean more profit.
One of the primary reasons jobs fly overseas is due to this new awareness of a plethora of cheap labor. Even if it doesn't produce as Americans would, or end up as good quality as what we may do domestically, the cost differential more than makes up for it. It's also helped keep what jobs below the executive level that are left in the U.S. more bargain-priced than ever - even in the face of rampant cost-increases in everything.
Yet even with our fixed incomes for most of America, the bottom line is still more attractive by going cheaper and going overseas. We in America cannot compete with that due to our overly high cost of living. While a $9 an hour job in India, Indonesia or China may provide a very attractive standard of living and draw an incented workforce, in America it guarantees the individual will be part of a burgeoning working underclass with shrinking living standards and increased difficulties competing with other countries in this flat-earth economic paradigm.
Housing prices, as with food or utilities are one of those indispensable mandatory costs for the global workforce, no matter which country you live in. It doesn't take a rocket scientist to determine that American real estate is vastly higher than the very countries we now must duel with over diminishing work.
One exacerbating problem during this time of disappearing jobs was that many Americans turned to individual investing - flipping real estate - in the midst of Bush's "Economic Recovery." They made a handsome profit, providing cushion for the economic and employment uncertainty for a time. But like all pyramid schemes, it reached its saturation point. In the wake of this, we've experienced for some time a pricing over-escalation and a painful correction on real estate based on typical American standards and prices.
But once this reaches what were the pricing norms ten or fifteen years ago, the question begs: will there be jobs sufficient and plentiful enough to renew a housing boom? The answer to that will be no.
Until we in America reach cost levels similar to those of China, India or other third-world countries we are now mandated to compete with for jobs, America will face three choices. Either accept job insecurity (which will go where the wages and wage-earner costs are cheapest), acquiesce to a constant stagflated period where wages will be sub-par to bring us to what we've been accustomed to over the past decades, or give up on the globalizing workforce and retain jobs in America with the attendant cost increases. Corporations giving up profit are as likely as crack-heads giving up crack. We will have to look to one of the first two options.
Either American living standards must continue eroding at a shocking pace, or the costs of these living standards must come down accordingly in order to give American workers a chance to compete for jobs.
As things stand, McCain wants to artificially continue propping up real estate prices. This guarantees American jobs with livable American-level wages will never be able to compete with flat-earth, globalized workforces. For American wages to remain the same or deflate, and for jobs to stop evaporating before our eyes, costs must come down. And not just for housing prices, but for all essentials.
Monday, October 13, 2008
Myrtle Beach renourishment program has begun.
The machines are in place and the pipes are being laid to start the Myrtle Beach section of the beach renourishment program.
The Army Corps of Engineers has finally started on the Myrtle Beach phase.
Over the next few days, workers will pump sand from the ocean floor onto the beaches.
Work crews started in the north end of the Grand Strand a few weeks ago and have been slowly moving south.
Myrtle Beach residents and business owners are glad the renourishment project has started after the Sea Turtle's eggs have hatched from the local beaches and the tourist season ended.
The Army Corps of Engineers has finally started on the Myrtle Beach phase.
Over the next few days, workers will pump sand from the ocean floor onto the beaches.
Work crews started in the north end of the Grand Strand a few weeks ago and have been slowly moving south.
Myrtle Beach residents and business owners are glad the renourishment project has started after the Sea Turtle's eggs have hatched from the local beaches and the tourist season ended.
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