Real Estate 'Topics, Tips, Trends and News'

Friday, October 23, 2015

REAL ESTATE TIPS (Agent)...How to Write Captivating Copy for Lead-Getting Listings

by Courtney Soinski

TweakYourBiz.com

Are you constantly trying to come up with new ways to get more leads? Believe it or not, attention-grabbing and well-written advertising copy makes a huge difference for your listings and how they reach consumers. According to professional sales coach and broker, John D. Mayfield, remember this acronym phrase: “G.E.T. C.A.L.L.S.”

G: Grab the Reader’s Attention

This, in my opinion, is one of the hardest parts about writing successful advertising copy. You want the very first sentence of your ad listing to be bold and attention-grabbing. It will pull that potential homebuyer in, and hopefully, give them enough curiosity to read on.

E: Entice the Reader with Information

Instead of listing basic information about the home, use words that will paint a picture. That way, the consumer can actually visualize the kitchen, flooring, windows, master bathroom, or whichever element you’re choosing to describe.

T: Truth in Advertising

In your listing’s advertising copy, be sure you stay completely truthful. If you misrepresent or exaggerate when writing about the property, you will give them the wrong idea. You don’t want consumers to feel they were misinformed, especially if they decide to come visit the property and find out that it wasn’t what they were expecting. That’s a total turn-off.

SmallBizTrends.com

C: Close the Sale

Don’t be afraid to ask for a consumer’s business in your listing. This can be something as simple as telling them to contact you for more information about your services, or to schedule a private showing. If you advertise on RealEstateBook.com, you can even create a virtual tour for consumers to view. If they request more information on our site, we will send them an email lead with the property and agent information, and you will receive an email with their contact information.

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A: Ask the Seller What They’ll Miss About Their Home

This may be something you’ve never thought about, but it can really work. When you think about what you would miss about your own home, they will most likely be the absolute best features. Include it in the ad copy. After all, who better to ask than the resident?

TopRankBlog.com

L: List Key Features

In this section, make sure you point out key aspects about the property that consumer would whole-heartedly want to know. These features can be things like bedrooms, bathrooms, schools, location, price, central air-conditioning, or even flooring type.

L: Look at Other Ads

By taking a stroll through other successful advertisements, you’ll gain some insight on what really works. You may even become inspired in writing your own descriptions. It’s great to look at the competition, but just remember to use your own words and no copying! You may even find something you’ve never tried before.

S: Spend Time Preparing & Writing Ads

This is one of the most important pieces of advice I can give for writing advertising copy – take your time and don’t rush through it! When you think about all that you, as a real estate professional, invest in advertising and marketing your listings, it’s important to think it through. Remember to not put it on the back burner of your to-do list, and don’t forget to proofread and check for grammar!

REAL ESTATE TIPS...Top Tips for Winterizing a Vacant Home

For a home to remain in good shape throughout the winter it needs regular care and attention. When a home is occupied, many of the things that are necessary to keep it in good working order happen by default. But when the home is vacant, it is up to the owner or the property manager to prepare it from freezing temperatures and other winter risks.

The worst risk comes from bursting pipes, which can lead to water damage that can significantly impact the value of the home. Left alone, water can ruin everything it touches – walls, floors, electrical systems, etc. It can even damage the foundation. Other risks exist as well, such as pest infiltration, which can leave nasty surprises for the homeowner.

Taken together, the dangers of failing to winterize a home are too severe to ignore. Any real estate agent who has been involved with selling bank owned properties or vacant short sales can certainly tell you the necessity of knowing how to winterize a vacant home! In order to get an informed opinion on the subject we reached out to a well-known real estate agent in Westborough, Mass., Bill Gassett, who has been selling homes for nearly 30 years. Gassett runs a popular real estate blog known as Maximum Real Estate Exposure that offers numerous tips to buyers and sellers. Below he shares all of his tips for getting your place winterized.

When readying a vacant home for winter weather, there are several things you can do to prepare before freezing temperatures and other winter risks arrive. These include:

Bring in a plumber.

Hiring a professional plumber to winterize the pipes and water system in the home is extremely important if you want to avoid the incredibly expensive water damage that can occur from freezing pipes. The plumber can examine the entire system, inside and out, and then prepare it for freezing temperatures. The plumber will drain all areas where water is stored, like water heaters and hot tubs, and will use an air compressor to expel water from the pipes throughout the house. With the water removed, you do not have to keep the house heated to prevent freezing. The pipes are protected and you save money in utility costs.

Drain outdoor garden hoses.

Water hoses must be disconnected from the home and drained of water to prevent damage to both the hoses and the spigots where they attach to the house. Left undrained, the water inside will freeze and burst not only the hose, but often the spigot as well. If winter watering must be done to keep landscape plants alive, make sure the person who does the watering drains the hoses and disconnects them from the house after each use.

Close up all openings to the house.

To prevent animals and insects from entering the home for shelter, you will need to close up all openings throughout the house. These include dryer vents and the chimney.

Have the gutters cleaned and repaired if necessary.

Gutters must be free of debris and attached properly to the house to funnel water away from the roof, siding and foundation. When debris accumulates, the gutter may stop working properly. If enough water collects and a freeze hits, the weight of the ice can pull the gutter away from the home, damaging the siding and leading to potential ice hazards where water collects at the base of the house. If you live in a cold weather climate then you understand just how bad ice damning was last year. Knowing how to prevent ice dams is something every homeowner should have a grasp of. Ice dams can cause serious damage to a home including mold behind ceilings and walls that you may not be able to detect! Have the gutters cleaned periodically until all leaves have dropped from the trees, and make sure they are in good repair.

Remove anything touching the side of the house, such as leaves and firewood.

Water and insects can accumulate in firewood and debris, causing damage to the siding and leading to potential infestations. Keeping everything away from the house creates a safe barrier and prevents water damage. This includes shrubbery and other landscaping. Keep a minimum of a couple of feet to allow the home to breath.

Have trees trimmed over the home.

Remove any tree branches that may touch the house or hang too closely. Tree branches increase the leaves that accumulate in the gutter and can also break and fall on the house in a snow or ice storm. If you are negligent about keeping branches over your home it could lead to insurance denying your claim.

Use moth balls to keep insects out of the house.

Moth balls may smell unpleasant, but they are effective at keeping insects away. Use them anywhere you think insects may be a problem.

Talk to the gas company about disconnecting the gas supply.

A gas explosion can cause even more damage than frozen pipes. Let the gas company know the home is vacant and ask them to disconnect the gas supply to the home. Obviously if you are not living in the home this becomes important because if a gas leak were to form it would be too late for you to do anything about it. This is one of the major reasons why nearly all bank owned properties get winterized.

Make the home appear occupied at a glance.

It is better for potential buyers and discouraging to unwanted visitors if the home appears occupied. You can setup lights on timers and have the landscaping tended to periodically to keep things looking nice. If snow is an issue you can also have the driveway cleared. We provide a list of many tips on how to sell a home in the winter. This advice applies to both occupied and non-occupied homes. Keep in mind that if your home is on the market you are going to need to get it un-winterized with fairly short notice when the buyer schedules a home inspection. Buyers will want to be able to check the heating and plumbing systems and will not be able to do so if the home is winterized.

Hire a landscaper to perform a fall cleanup.

As the weather gets colder, plants will die and you will be left with a disheveled looking yard and landscape. It is beneficial for the sales process if you have someone come in and cleanup around the home after the first freeze or two, when most of the vegetation has died off. The landscaper can cut back any dead growth, rake up leaves and prepare plants for the winter.

Check on the home periodically.

An unoccupied home, even when the lights come on and the driveway is plowed, can be appealing to burglars and to squatters. It can also be a destination for kids in the neighborhood to come hang out for fun. The only people you want visiting are potential buyers, so you should maintain a schedule of visiting the home periodically to make sure it is being left alone and to discourage unwanted visitors.

Use of all these tips and your experience with winterizing a home should be a breeze!

Thursday, October 22, 2015

REAL ESTATE NEWS...U.S. existing home sales rise more than expected, inventory tighter

U.S. home resales rose more than expected in September to the second highest monthly sales pace since February 2007, suggesting the housing market continues to show strength compared to the rest of the economy.

The National Association of Realtors said on Thursday existing home sales increased 4.7 per cent to an annual rate of 5.55 million units.

August’s sales pace was revised slightly lower to 5.30 million units from the previously reported 5.31 million units.

Economists polled by Reuters had forecast home resales rising to a 5.38 million-unit pace last month. Sales were up 8.8 per cent from a year ago.

Sales increased in all four regions of the United States and inventory continued to tighten. Unsold inventory was down to a 4.8-month supply at the current sales pace, down from 5.1 months in August and 5.4 months a year ago.

“As we enter more softer demand months, we may not really feel the squeeze of tight inventory, but come spring of next year ... we could be facing a very tight inventory situation,” said Lawrence Yun, the NAR’s chief economist.

Nationwide, the medium home price fell to $221,900. That was still an increase of 6.1 per cent from one year ago.

The stable pace of home resales in September follows Tuesday’s strong housing starts data, which was buoyed by increased demand for rental apartments.

Housing has steadily improved relative to the rest of the U.S. economy, which has been buffeted by soft global demand, a strong dollar, and weak capital spending in the energy sector.

REAL ESTATE NEWS...California FAST FACTS

FAST FACTS

Calif. median home price: September 2015:

California: $482,150

Calif. highest median home price by region/county: San Mateo, $1,200,000

Calif. lowest median home price by region/county: Tehama, $188,890

Calif. Pending Home Sales Index:
August 2015: Increased 12.8 percent from a to 112.8

Calif. Traditional Housing Affordability Index: Second Quarter 2015: 30 percent (Source: C.A.R.)

Mortgage rates: Week ending 10/15/2015 (Source: Freddie Mac)

30-yr. fixed: 3.82% fees/points: 0.6%
15-yr. fixed: 3.03% fees/points: 0.6%
1-yr. adjustable: 2.54% Fees/points: 0.2%

Source: Inman

California’s housing market will continue to improve into 2016, but a shortage of homes on the market and a crimp in housing affordability also will persist, according to the CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.) “2016 California Housing Market Forecast.”

Making sense of the story

The C.A.R. forecast sees an increase in existing home sales of 6.3 percent next year to reach 433,000 units, up from the projected 2015 sales figure of 407,500 homes sold.

Sales in 2015 also will be up 6.3 percent from the 383,300 existing, single-family homes sold in 2014.

C.A.R.’s forecast projects growth in the U.S. Gross Domestic Product of 2.7 percent in 2016, after a projected gain of 2.4 percent in 2015.

The state’s unemployment rate should decrease to 5.5 percent in 2016 from 6.3 percent in 2015 and 7.5 percent in 2014.

The average for 30-year, fixed mortgage interest rates will rise only slightly to 4.5 percent but will still remain at historically low levels.

The California median home price is forecast to increase 3.2 percent to $491,300 in 2016, following a projected 6.5 percent increase in 2015 to $476,300. This is the slowest rate of price appreciation in five years.

C.A.R. Vice President and Chief Economist Leslie Appleton-Young commented, “The foundation for California’s housing market remains strong, with moderating home prices, signs of credit easing, and the state continuing to lead the nation in economic and job growth.”

REAL ESTATE NEWS...California September home sales and price report

California home sales ease in September as market transitions into off-season

- Existing, single-family home sales totaled 425,030 in September on a seasonally adjusted annualized rate, down 1.5 percent from August but up 6.9 percent from September 2014.

- Statewide sales were above the 400,000 mark for the sixth straight month.

- September’s statewide median home price was $482,150, down 2.3 percent from August but up 4.3 percent from September 2014.

LOS ANGELES (Oct. 16) – California existing home sales and median price retreated in September but still posted higher than a year ago, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today.

Home sales remained above the 400,000 mark in September for the sixth consecutive month and posted higher on a year-to-year basis for the eighth straight month. Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 425,030 units in September, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. The statewide sales figure represents what would be the total number of homes sold during 2015 if sales maintained the September pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.
The September figure was down 1.5 percent from the revised 431,630 level in August but up 6.9 percent compared with home sales in September 2014 of a revised 397,490. The year-to-year change was lower than the 6-month average increase of 9.7 percent observed between March 2015 and August 2015.

“While home sales continue to improve from last year, it will be interesting to see what impact the new implementation of the Consumer Financial Protection Bureau's Know Before You Owe TILA-RESPA Integrated Disclosure, or TRID, will have on home sales in the future,” said C.A.R. President Chris Kutzkey. “Some sales that would have closed in October may be delayed because of longer loan processing times. In the first week of its implementation, mortgage applications have already seen a significant drop, partially due to the volume that was pulled forward prior to TRID’s effective date.”

The median price of an existing, single-family detached California home decreased 2.3 percent in September to $482,150 from a revised $493,510 in August. September’s median price was 4.3 percent higher than the revised $462,380 recorded in September 2014. The median sales price is the point at which half of homes sold for more and half sold for less; it is influenced by the types of homes selling as well as a general change in values.

“The statewide median home price has been on the rise but may have already peaked for the year,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “Home prices are moderating due partly to a shift in the mix of sales, as more homes are being sold in lower priced regions, such as the Central Valley, where the sales share increased from 25.5 percent last year to 26.4 percent in September. Conversely, the Bay Area experienced a drop in sales share from 18.8 percent to 17.2 percent during the same time period. This trend will likely persist through the rest of 2015.”

Other key points from C.A.R.’s September 2015 resale housing report include:

• While sales continued to improve from last year at the state level, the number of active listings continued to drop from the previous year. Active listings for California dropped 1.9 percent from August and decreased 7.2 percent from September 2014.

• The September Unsold Inventory Index remained at 3.7 months, unchanged from August but was down from 4.2 months in September 2014. The index indicates the number of months needed to sell the supply of homes on the market at the current sales rate. A six- to seven-month supply is considered typical in a normal market.

• The median number of days it took to sell a single-family home edged up in September to 32.6 days compared with 29.9 days in August but was down from a revised 36.3 days in September 2014.

• According to C.A.R.’s newest housing market indicator which measures the sales-to-list price ratio*, properties are again generally selling below the list price, except in the San Francisco Bay Area, where a lack of homes for sale is pushing sales prices higher than original asking prices. The statewide measure suggests that homes sold at a median of 98.5 percent of the list price in September, up slightly from 98 percent at the same time last year. The Bay Area is the only region where homes are selling above original list prices due to constrained supply with a ratio of 102.4 percent in September, up from 101.2 percent a year ago.

• The average price per square foot** for an existing single-family home was $236 in September 2015, unchanged from August but up from a revised $231 in September 2014. Price per square foot at the state level has been on an upward trend since early 2012 but appears to be leveling off and slowing to an average increase of 1.3 percent in the past three months as home price appreciation began to moderate.

• San Francisco had the highest price per square foot in September with $770/sq. ft., followed by San Mateo ($723/sq. ft), and Santa Clara ($577/sq. ft.). The three counties with the lowest price per square foot in September were Madera ($118/sq. ft.), Kings ($118/sq. ft.), and Tulare ($120/sq. ft.).

• Mortgage rates dipped in September, with the 30-year, fixed-mortgage interest rate averaging 3.89 percent, down from 3.91 percent in August and 4.16 percent in September 2014, according to Freddie Mac. Adjustable-mortgage interest rates also slipped, averaging 2.59 percent, down from 2.60 percent in August and 2.43 percent in September 2014.

REAL ESTATE TOPICS...weights holding back the housing market

NeighborWorks America survey finds student debt, mortgage market confusion, and a declining marriage rate are weights holding back the housing market

Washington, DC -- The third annual America at Home survey from NeighborWorks America, the leading organization dedicated to providing people with safe, healthy and affordable housing, finds that despite a growing economy, the financial pressures of student debt, persistent confusion about the mortgage process and a continuing nationwide marriage rate decline are important factors combining to slow the housing market.

Americans say student loans are a key obstacle in purchasing homes

View the infographic.

The survey found that student loan debt continues to grow as an obstacle in a consumers’ ability to buy a home, as 57 percent of 2015 respondents who acknowledge having student loans said this debt was either “very much” or “somewhat” of an obstacle, compared to 49 percent of 2014 respondents.

Additionally, although mortgage rates remain historically low, a generally steady rise in home prices is outpacing income growth, leading homebuyers – especially first-time buyers – to search for ways to build up a down payment. However, nearly 40 percent of respondents have received “nothing at all” in terms of information about down payment assistance programs for middle-income homebuyers, programs that could provide thousands of dollars to help bridge a savings gap.

Finally, the housing market is being pressured by changing demographics. Of the respondents surveyed, 43 percent planned to purchase a home when they “got married or moved in with a life partner.” This is important for the housing market’s rebound, because the median age at first marriage has increased to 29.3 for men and 27.0 for women, according to the Census Bureau, up from 26.8 and 25.1 years, respectively in 2000.

“It’s clear the housing market is directly affected by many factors, and these forces identified in our survey are putting strong downward pressure on growth,” said Paul Weech, president and CEO of NeighborWorks America. “While NeighborWorks can’t address the demographic shift, we are increasing our efforts to support nonprofits that offer homebuyer education and financial capability coaching.”

Additional findings from the survey suggest other areas where increased homebuyer education could energize the housing market:

Consumers have trouble estimating the accurate costs associated with homeownership and general home maintenance. Respondents estimated an average cost of $15,070 for home maintenance repairs; however, the actual cost for home repairs and upkeep nationwide is more likely between $2,000 and $6,000. While current homeowners estimated cost for repairs to be $12,360, current renters estimated $20,503, suggesting that those consumers in the market for a new home might be deterred by perceived high maintenance costs.

Respondents lack adequate information on the consequences of foreclosure. While 32 percent of respondents believe they would have to wait “more than 5 years” after a foreclosure before they were eligible to obtain a new mortgage to purchase another home, the reality is consumers who have experienced a foreclosure need only wait two years before becoming eligible for most mortgage products.

“These findings reveal that Americans are not receiving adequate information about the home buying process,” said Weech. “With 42 percent of consumers using friends and family as primary sources of information about purchasing a home, it is incumbent upon organizations like NeighborWorks to ensure consumers take advantage of the many housing resources available. It’s understandable that Americans looking to purchase their first home are intimidated by obstacles such as student debt, lack of a down payment and weak credit, so it’s critical that first-time homebuyers have access to information and programs such as down payment assistance and affordable loans so they feel confident in purchasing a home independently.”

REAL ESTATE TOPICS...Millennials Less Likely Than Baby Boomers to Understand the Impact of Major Life Events on Credit

Millennials are less likely than baby boomers to identify milestone life events that could affect their credit, according to a new survey released today by TransUnion (NYSE:TRU). In fact, less than half of millennials surveyed could cite specific major life events that could negatively or positively affect credit, such as divorce (40 percent compared to 57 percent of boomers) or the death of a spouse (26 percent compared to 48 percent of boomers).

According to the survey, consumers of all ages are generally unprepared for life events from a credit perspective because they don’t check their scores before or after the life event. Only 49 percent of all respondents said they checked their credit when planning for or experiencing a milestone, such as marriage, having a child or becoming unemployed.

Respondents were only slightly more likely to check their credit when taking out a loan than they were when preparing for other life events. Fifty-eight percent indicated they did check their credit when applying for a mortgage and 56 percent said they did when pursuing a student loan.

“Many different events – from major life milestones to small incidents – can enhance or damage your creditworthiness,” said Chaplin. “It’s worth investing in a credit monitoring service that can keep you informed about how events in your life are altering your score.”

The survey found that, in general, millennials were more aware of the possible credit impact of ordinary life events than they were about the possible impact of major life milestones. For example, at least two-thirds of millennials identified that having a joint account with their spouse (65 percent), making late rent payments (76 percent) and filing for bankruptcy (83 percent) all have the capacity to affect one’s credit.

With each life milestone, it’s important for people to review their financial habits and credit standing. TransUnion advises the following for those preparing for life changes:

Getting Married: Before getting married, it’s important to talk with your partner about finances. Less than half (43 percent) of millennials knew that getting married can affect their credit. Openly discussing finances with your partner is the best way to prevent future disagreements. And don’t forget to review your credit reports with one another.

Buying a Home: Check your credit report for accuracy, confirm that your scores are where you want them to be, and that no one else has access to your credit. Only 58 percent of survey respondents indicated they checked their credit when applying for a mortgage.

Buying a Car: Your credit can affect the car buying process – from getting financing to figuring out the right payments – but just two of three millennials (66 percent) knew that taking out a car loan affects credit. It’s important to decide what you can realistically spend monthly on a car payment and think about the cost of fuel and periodic maintenance.

Wednesday, October 21, 2015

REAL ESTATE NEWS...Getting a mortgage may take longer under new rules

By Diana Olick

The goal is to make the mind-numbing mortgage process much easier for consumers to understand. It's called Know Before You Owe, which sounds simple enough.

The means to that goal, however, is all-new paperwork and disclosure rules for lenders that went into effect this past Saturday and which some say could delay the mortgage process and cost consumers cash.

The standardized forms spell out exactly how much a borrower must pay for closing costs and how much each monthly payment will be as the loan ages and potentially adjusts, right up until its term ends.

Borrowers must get these new, standardized forms at least three days before closing on the loan, which is a shift from previous standards, which allowed changes to be made on a loan right up to and even during the closing.

Peter Dazeley | Getty Images

"I think that's a big one because consumers have been complaining about this left and right because they would get to the signing table and suddenly everything would change," said Jason van den Brand, CEO of Lenda, an online mortgage refinance company operating in Washington, Oregon and California. "So you get quoted something and the loan gets locked, and you get to the closing table and suddenly the rate has gone up by a quarter percent, your fees have gone up $10,000 and you're sitting there scratching your head going, what just happened?"

This is another outgrowth of the Dodd-Frank law, passed in 2010, designed to hold lenders accountable and protect consumers against what happened during the last housing boom. Back then, lenders offered borrowers loans with complicated terms, adjustments and penalties, without having to fully explain them.

Some borrowers didn't even know their loans could adjust to higher payments or that the loans themselves were actually growing in size. Many of those risky loan products have been banned, but adjustable-rate loans are still perfectly legal and considered beneficial for many borrowers, as long as the borrowers know what they're getting into.

The new rules (TILA RESPA Integrated Disclosure or TRID, if you really want to know) were completed two years ago, and the final date for implementation was even delayed three more months to make sure lenders could comply. At the heart of it are two forms, one providing the loan estimate and one the closing disclosure.

Those forms are designed to simplify the process for borrowers, but lenders have spent billions of dollars updating their systems to make sure they are complying, according to the Mortgage Bankers Association, which has a TRID Resource tab on its website. Some worry that even now lenders and real estate agents are just not ready.

"I think if we see a significant slowdown, and it doesn't have to be that significant 30 to 60 [days] is pretty significant, if we see that slowdown start to happen, we're going to see deals fall through and lenders change in the middle, and that's the cascading effect that we are most concerned about," said Mark McElroy, CEO of Pavaso, a digital closing platform.

Richard Cordray, director of the Consumer Financial Protection Bureau (CFPB), which is behind the new rules, reiterated in testimony to Congress last week that there will be something of a grace period for lenders to comply.

"Nobody believes that market participants are going to be trying to abuse consumers here; they're trying to change their systems. So we'll be diagnostic and corrective, not punitive, and there will be time for them to work to get it right and not be perfect on the first day," said Cordray.

With the rules just 2 days old, Matt Weaver, vice president of mortgage sales at Finance of America Mortgage, a Blackstone Company, says it appears the sky has not in fact fallen, but he does expect to see delays, especially at the big banks, where closing time could stretch out to 60 or 75 days.

"There is a fee to extend rate locks. The question is, is that cost going to be passed on to the client. From an overall perspective, the market is saying slow down. It will all work itself out, but out of the gate we certainly are going to see some turbulence with the larger banks simply because of their volume," said Weaver.

Independent lenders, like Finance of America, may have an easier time, as they control every aspect of the process. Weaver said his company hired additional staff and underwriters to be able to facilitate and narrow the time gap.

Realtors are most concerned, however, because the majority of those buying a home today are also selling a home, and time is always of the essence. Mortgage delays caused by the new rules could throw a wrench into some sales.

"When you are trying to brace them for a longer, drawn-out closing, that causes a panic," added Weaver.

The best advice for borrowers is to prepare for delays, have all paperwork ready before even starting the process and possibly even spend the extra money upfront for a longer lock term.

REAL ESTATE TOPICS...Why Presidential Candidates Should Be Talking About Housing

So far, the presidential candidates have talked about immigration, turmoil in the Middle East, Russia, China, women’s periods (OK, just Donald Trump), gun control, and jobs jobs jobs.

But pretty much all of them, with the exception of Jeb Bush and his plan to put a cap on mortgage interest deductions, have ignored the big H: housing.

That’s going to change on Friday, when several Republican presidential candidates attend the New Hampshire Housing Summit in Manchester, NH. Our own chief economist, Jonathan Smoke, will be there along with New Jersey Gov. Chris Christie, U.S. Sen. Lindsey Graham of South Carolina, former Arkansas Gov. Mike Huckabee, former Maryland Gov. Martin O’Malley, and former New YorkGov. George Pataki. And Smoke, for one, can’t wait.

“It’s been a complete letdown that we’ve had three multihour debates with an army of people, and not one word has been mentioned about housing,” he said.

“That’s a testament to how some of these people are clueless as to the problems real people are facing.” Now that the foreclosure crisis is over, he said, people seem to think that housing’s not so important anymore.

Boy, are they wrong. Housing, in fact, is directly related to some of the biggest issues facing America—and its future president.

Housing affects our economy

Housing has traditionally been an enormous driver of our economy. According to Smoke, it often accounts for around 18% of our gross domestic product; since the crash, it’s hovered around 15%. A robust housing sector means a more robust economy.

“The current state of the housing sector causes our economic growth to be at risk,” he said.

Homeownership affects income inequality

With homeownership at all-time lows and prices at all-time highs, families are also at risk. “Homeownership has been the only way that the middle class has been able to traditionally produce wealth,” Smoke said. “Everything else, including retirement plans, pales in comparison to the wealth produced from owning.”

With demand far outpacing supply, and with the increased formation of new households thanks to the combination of immigration and millennials leaving the fold, Smoke said, “There’s literally not enough housing to meet the needs. The people who can pay for it pay more and more, and those who can’t have to pay a more burdensome amount.”

All the political talk about income inequality can be seen plainly in the housing market.

“It’s real and it’s evident and it’s getting more severe,” he said. “Affordable housing should be a topic on the presidential stage, and homeownership should be championed and supported.”

Immigration is a housing issue, too

Immigration is directly tied to housing in another way: Once we do get construction rolling again, said Smoke, we’re going to need more immigrants.

“We don’t have the labor in this country anymore to support those trades,” he said. Those roles were filled essentially by immigrants, he added. If we don’t have a smart approach to immigration, “we’re not going to solve that labor shortage.”

Housing, said Smoke, connects all of those major issues: the economy, income inequality, and immigration. “I see those problems as not being solvable unless housing is a part of the mix,” Smoke said. “It takes a village to fix this problem.”

Were Smoke to moderate a debate, he’d ask the candidates to articulate their opinion on homeownership and ask what we should be doing to support it. That ought to be the one topic that can really bring the candidates into a rare state of consensus.

“I can’t believe that anyone on either side of the aisle would say that homeownership is not important,” he said. “It’s truly a bipartisan topic.”

Tuesday, October 20, 2015

REAL ESTATE TOPICS...Become a California REAL ESTATE AGENT

Looking for a new career? Then join the rewarding ranks of those who have become a Real Estate Agent. The California Real Estate market is hot!!! California requires three certificates to apply to take the Real Estate test. Below are the locations of our LIVE LECTURE (Instructor lead) Courses. Each Instructor makes learning fun, easy and informational. If you tried 'on-line' and it didn't work or the thought of an expensive and long college course doesn't appeal to you then we have the answer. If necessary, we make sure each our our students gets all the individualized attention necessary to help pass our course. Our goal is to make sure each of our students comes away better prepared for the State exam and well informed of what it's really like to be in a Real Estate career. Call us today, classes fill fast.

Now Serving these Communities...

-Marina / Monterey / Salinas / Watsonville(Call 630-667-6077 Instructor - John Schubert)
  Class location - 3116 Del Monte Blvd. (Countywide Realty Group) MARINA(Across the street from 'Round Table Pizza')-Fresno / Clovis  (Call 630-667-6077 Instructor - John Schubert)Class location -  7948 N. Maple Suite #116 (Connect Realty) FRESNO(Corner of Maple and Nees)

-Modesto / Merced / Stockton  (Call 209-914-2968 Instructor - Kirk Dall)
Class location - 1001 Sylvan Ave. Suite 'A' (Keller Williams Realty) MODESTO(located at the corner of Sylvan Ave. and Coffee Rd.)

-Ventura / Oxnard(Call 805-402-7313 Instructor - Bob Hooker)
Class location - 940 E. Santa Clara Street (Realty One Group) Ventura(located on corner of Santa Clara and Laurel St. in Ventura )

-Thousand Oaks / Simi Valley   (Call 805-402-7313 Instructor - Bob Hooker)
Class location -  888 E. Thousand Oaks Blvd. Suite 100 (Exit Realty Group) THOUSAND OAKS(located on corner of Thousand Oaks Blvd. and Taylor Court. in Thousand Oaks)

-Corona / Riverside (Coming Soon) (Call 630-667-6077 John)
Class location -  (Coming soon) CORONA

-Campbell / San Jose / Silicon Valley   (Call 650-219-3703 Instructor - Pranil Balram)
Class location - 880 E. Campbell Ave. (ReMax Real Estate) CAMPBELL(located on corner of Meridian and Willow in San Jose)

-Bakersfield   (Call 661-304-9372 Instructor - Walter Bowen)
Class location - 10014 Rosedale Hwy. Suite 3 (Tholco Real Estate Group) BAKERSFIELD(located just west of Calloway Dr. and east of Mosasco St. in west Bakersfield)

-Concord / Walnut Creek   (Call 510-325-8865 Instructor - Michael Awadalla)
Class location - 1465 Enea Cir. Suite 620 (HomeSmart Optima Realty) CONCORD(located just off the 680 Freeway - Willow Pass Rd. and Waterworld Pkwy. in Concord)

-Inglewood / LA  (Call 310-386-9406 Instructor - James Jennings)
Class location - 233A S. Market Suite #110 INGLEWOOD(located at intersection of Manchester and Market)

-Upland / Rancho Cucamonga     (Call 909-240-8986 Instructor - Alex Martinez)
Class location - 517 N. Mountain Ave. Suite 219 (World Realty and Management) UPLAND

-Carlsbad / Oceanside / San Diego (Coming Soon)   (Call 630-667-6077 John)
Class location - (Coming soon) CARLSBAD

-Temecula / Murrieta   (Call 951-225-1901 Instructor - Darryl Self)
Class location - 31093 Temecula Parkway Suite # D2 (ReMax) TEMECULA(located at the intersection of Temecula Parkway and Jerdediah St. in Temecual)

-Pleasanton / Livermore(Call 650-219-3703 Instructor - Pranil Balram)
Class location -  5976 W. Las Positas Suite 218 (West Coast Realty) PLEASANTON(located at intersection of Hopyard and Las Positas)

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