How do you write the future?  You write the news!

It is well know that winners rewrite history.  As with uncertain times, many organization that rely on hard data to point out trends find themselves with little to go on.  In our current struggling market finding a balance between buyers and sellers would probably be a much healthier if left alone by doomsday sayers and news writers.

Often enough I am told a potential client is waiting to buy because they read some institution "predicted" the market would go down.  Whenever I hear the word "predicted" I get shivers.  What else are they going to use to catch people’s attention.  Don’t get me wrong, I well fairly well versed in esoteric but market prediction are based on two theories, guessing or influencing viewers.  Ultimately, influencing viewers is the easiest as the news will proclaim, they had predicted it.

But it is only a self-fulfilling prophecy, not news and definitely not reporting the truth.  If not, how come we still have multiple offers on homes with price right?

Freddie Mac is coming out clean by saying with all the bubble chatter, the fact is turning out to be a great year for the U.S. real estate market.  Prices have appreciated in total contradiction to big headlines of declining markets.  Declining based on the not normal appreciation rate of these last few years, yes.

There is a slowing in housing activity, no doubt and we are in store to have the third-best year on record for the housing industry, surpassed only by 2004 and 2005.

I love correctly reported news.

OK, I think I can add yet another market branch to my real estate practice.  Being a Reiki Master Teacher and a Kofutu Healer Instructor, as well as being well versed in Hermetic readings, Yoga, use of Crystal amongst others, I can not only come and talk to some of those pesky spirits that haunt your sales but also do relaxing Reiki and Kofutu life changing sessions on you so that the house sells quicker…  Hmm…

Read this great story.

Yea, Wikipedia.  Wikipedia’s founder Jimmy Wales, the online encyclopedia written by its users, defied the Chinese government by refusing to bow to censorship unlike Google, Yahoo and Microsoft, along many others who caved in.  Wikipedia has been banned from China since last October.  Wikipedia stands its ground and should be commended in this day and age.

Among the issues the Chinese government has is the Tienanmen Square protests of 1989 includes the government’s official claim that 200-300 died and the Chinese student associations and Chinese Red Cross’s estimate of 2,000-3,000 bone-crushing deaths.

I believe we are seeing globally the last throes of power plays, politics, ideologies and religious insidious wars that no longer mobilize the masses.  It is about time to move on.

Click here for the original story.

How Low Will Home Prices Go?  That’s a question I often here only topped by: "What do you think of the market now?".  I always want to answer: "I think, yes, I do…"  but that will not fly.

With home prices still appreciating, many people express their puzzlement at how the prices are "dropping".  With a glut of homes on the market, prices seems to go down yet median price is appreciating.  What does this mean?

To be honest, first of all, a median is an average.  So the average price for every home is appreciating at a much reasonable pace of around 5% this year.  But in different segment of the market, some might be going up more and other less if not in a negative line.  Unfortunately, I cannot find any details studies on this.

With homes showing empty is a sure sign the sellers already moved out and were expecting prices they gaged from a while back.  These prices might not always reflect today’s reality. Another sign are similar homes with a wide range of prices.

Also, more and more buyers are coming in with very low offers.  Half of the time, sellers balk at them and others accept it.  Ultimately in the end, buyers determine the price.

First-time home buyers are the most hit in these last few years market.  An alarming number I found is that the median monthly payment as a percentage of income was 24.3% in July 2006, up from 20.5% in 2000.  Obviously, first-time buyers cannot afford anything and this whole segment of the market is not breathing cash into the market. 

It is definitely a fluctuating market and no one can clearly predict where it will go without some guessing.

No serious investor goes in on hunches or headlines, ever.  A serious investor has two choices, either has the discipline to watch the market every day and make informed decisions based on a strategy she/he personally developed and that works, or relies on the skills of a company that will do that for them.

Renting an income-producing property is a good idea but you need to do your math first.  Tenants give you rental cash and your property appreciates.  It seems like an all-win situation.  But property is not liquid as in the stock market.

Unfortunately, how do you protect yourself from overpaying a property?  A thorough research and study is the crucial. Obviously, you make a profit when you buy below market value.  However, buying properties that need a little work can yield profit but at a cost.

An unfortunate backlash from the last few years were taking on too much, too soon and expecting too much in return.  There is a Corsican saying that goes: "Qui va piano, va sano".  He who proceeds slowly makes long strides.  Starting small with a condo duplex will help you decide if this investment is for you.  Without going into major upgrades or improvements, you can test the waters and while watching the market determine if it is a time to raise rent, re-evaluate them, buy more property, etc.

This story at Market Watch illustrates this point.