By Greg Burns
Chicago Tribune correspondent
September 25, 2008
Hard times can be good times for auctioneers, and if the government follows through with its $700 billion bailout plan, the folks bringing down the gavels expect to get quite a workout.That's what happened during the last financial meltdown a generation ago, when the shopping centers and apartment buildings of failed savings and loans went on the block after the government seized them. Although not everyone remembers that period fondly, it turned into a bonanza for those who played the auction game wisely, snapping up great deals at fire-sale prices. Even more real estate could be up for grabs today.This time, however, the government is planning to take over a vast amount of property indirectly, through complex investments called mortgage-backed securities, which bundle together hundreds, or even thousands, of loans.One of the great mysteries of the proposed bailout is how the government would manage the millions of homes underlying its investments.The nation's auctioneers have an inkling about how it will work out and, no surprise, the endgame as they see it does indeed involve some fast talking. If the government takes on a giant portfolio of residential real estate, some of it, and maybe a lot, inevitably will be sold at auction, they say."Ultimately, the government is going to end up being the parking lot of foreclosed housing," said Steven Good, chief executive of Chicago auctioneer Sheldon Good & Co. "We're equipped to service their business. That's where auctions would be effective."As Chicago auctioneer Rick Levin put it, "This should be a boom for the auction industry."Like other auctioneers, Levin already is in the business of unloading government-owned property seized through official action, including real estate for sale to the highest bidder. He has the official seal of the U.S. Treasury prominently displayed on the Web site of his Rick Levin & Associates.Through its takeover of mortgage giants Fannie Mae and Freddie Mac, the government owns thousands of vacant properties. Snapping up mortgage-backed securities would multiply the federal exposure to distressed homes.That would give government officials enormous market power. And their most important decision could prove to be when to exit their real estate investments.Federal Reserve Chairman Ben Bernanke stressed to Congress that the plan for helping out banks works only if the government pays more than the current market price, on the theory that the value of the distressed securities it buys will grow over time.Yet residential properties can't just be ignored while federal officials wait to realize their "hold to maturity" price. Maintenance needs to be performed, taxes and association fees paid, heat and lights kept on. At some point, homeowners who can't pay will have to clear out, and the vacant properties brought to market.As owner of the securities, the government could influence how the mortgages are serviced, deciding under what circumstances foreclosures would occur, for instance, or when to sell."I'm sure the government can impact these things," said Robert Korajczyk, professor at Northwestern University's Kellogg School of Management. "That's definitely going to happen."Enter the auctioneer.Residential real estate has become the fastest-growing sector of the live-auction industry, with sales volume rising 46.6 percent between 2003 and 2007, according to the National Auctioneers Association. Last week, the trade group sent a letter to Treasury Secretary Henry Paulson offering its services "during these trying times."Even in this environment, real estate will move, said Alan Kravets, president at Sheldon Good and a veteran of the savings-and-loan workout.Savvy investors who remember the fortunes made in those auctions will be hoping for a repeat, he predicted. "It will be easy to attract buyers," he said. "Somebody's going to be getting a great value."Government officials should consider moving quickly, Kravets added, to keep their properties from deteriorating and get the overall real-estate market moving again."This is all about recovery and mitigating losses. Time is the enemy."gburns@tribune.com
Copyright © 2008, Chicago Tribune
Auctions are becoming quiet popular call or email me if you would like to participate in the next local auction. BethBrownRealtor@comcast.net 239-250-2408
Friday, September 26, 2008
Tuesday, September 23, 2008
Vasari - Premier bundled golf community!
Beautiful 3 bedroom, 2 bath coach home located in prestigious Vasari Golf & Country Club. You won't be disappointed with this tastefully decorated hidden jewel located off the main road on a cul-de-sac with plenty of privacy overlooking the preserve. All the right upgrades here including granite counters, stainless steel appliances, crown molding, tile on the diagonal and more. Play the 18 hole Gordon Lewis golf course, workout in the state of the art fitness center, play on the Har-Tru tennis courts, dine at the club or swim in one of the many pools throughout the community. You can have the carefree lifestyle in this bundled golf community, come and see this one it's your best buy! Great seasonal rental potential, currently rented for Jan through March 2009 ask me for details. Offered furnished at $393,750
You can email me at BethBrownRealtor@comcast.net or call at 239-250-2408
Best Buy in Delasol - NEW
Brand new never lived in over 3,000 sq ft under air with 2 car extended garage. Located on a cul-de-sac with a premium lake front lot and coveted western exposure. This Mediterranean style 4 bedroom plus den, 3 bath, great room design home has an impressive kitchen that includes washed maple cabinets, island with prep sink, built in desk, over bar recessed lighting, upgraded appliances, and kitchen nook with mitered glass overlooking the lake. Additional features include tile on the diagonal throughout living areas, dramatic ceiling detail, crown molding, tray ceilings, upgraded fixtures, and much more. Delasol community consists of 286 single family homes with a state-of-the-art fitness center, tennis, clubhouse with pool and spa, sidewalks, desirable schools, and a location that make this one of Naples' most preferred neighborhoods. Asking $699,000
You can email me at BethBrownRealtor@comcast.net or call at 239-250-2408 for more information on this home.
Naples ray of sunshine in housing market, analyst says
Naples ray of sunshine in housing market, analyst says
By LAURA LAYDEN
Thursday, September 18, 2008
NAPLES — In one economist’s eyes, the Naples real estate market is now seen as “slightly undervalued.”In an interview with CNBC Wednesday night, Richard Dekaser, a senior vice president and chief economist at National City Corp., singled out Naples in talking about the “first rays of sunshine on a possible end to the housing crisis.”“Three years ago, the poster child for excess valuation in America was Naples, Florida,” he said.Not anymore. Through the second quarter of this year, prices have dropped 33 percent, he said, leading him to judge the market as “slightly undervalued.” That means home prices are actually lower than where they should be.“Now it could become even more undervalued and I suspect it will,” he said in the interview. “But I think we have to appreciate the adjustment that has already occurred.”He said prices could hit bottom within six months as foreclosure rates begin to fall.“I don’t want to overstate the case,” he said. “The housing bust is not over. But we are in a later stage of stabilization,” he said.Dekaser is the same analyst who labeled Naples the most overpriced market in the U.S. a few years ago.At the end of the first quarter of 2006, National City judged that with a median home price of $383,000, prices were more than double what they should be in Naples.Prices continue to fall.In August, the median home price — the price at which half of the homes sell for more and half for less — dropped to $238,000 in the Naples area. That was down from $375,000 a year ago, according to a monthly report by the Naples Area Board of Realtors.For seven straight months, sales have picked up.It was nice to see Naples shown in a positive light in the media, especially with so much bad news going on in the banking and financial markets, said Brett Brown, president-elect for the Naples Area Board of Realtors.He said if you took out the under-$300,000 market, where most of the foreclosures and short sales are happening, the median price would have been up 5 percent in August. Short sales are sales made for less than the bank is owed to avoid foreclosure.Naples was the only market mentioned in the interview with CNBC.“It shows we haven’t fallen off a cliff,” Brown said. “We are here. Properties are selling.”To see the interview, go to www.cnbc.com/id/15840232?video=859022956
More good stuff from BethBrownRealtor@comcast.net
By LAURA LAYDEN
Thursday, September 18, 2008
NAPLES — In one economist’s eyes, the Naples real estate market is now seen as “slightly undervalued.”In an interview with CNBC Wednesday night, Richard Dekaser, a senior vice president and chief economist at National City Corp., singled out Naples in talking about the “first rays of sunshine on a possible end to the housing crisis.”“Three years ago, the poster child for excess valuation in America was Naples, Florida,” he said.Not anymore. Through the second quarter of this year, prices have dropped 33 percent, he said, leading him to judge the market as “slightly undervalued.” That means home prices are actually lower than where they should be.“Now it could become even more undervalued and I suspect it will,” he said in the interview. “But I think we have to appreciate the adjustment that has already occurred.”He said prices could hit bottom within six months as foreclosure rates begin to fall.“I don’t want to overstate the case,” he said. “The housing bust is not over. But we are in a later stage of stabilization,” he said.Dekaser is the same analyst who labeled Naples the most overpriced market in the U.S. a few years ago.At the end of the first quarter of 2006, National City judged that with a median home price of $383,000, prices were more than double what they should be in Naples.Prices continue to fall.In August, the median home price — the price at which half of the homes sell for more and half for less — dropped to $238,000 in the Naples area. That was down from $375,000 a year ago, according to a monthly report by the Naples Area Board of Realtors.For seven straight months, sales have picked up.It was nice to see Naples shown in a positive light in the media, especially with so much bad news going on in the banking and financial markets, said Brett Brown, president-elect for the Naples Area Board of Realtors.He said if you took out the under-$300,000 market, where most of the foreclosures and short sales are happening, the median price would have been up 5 percent in August. Short sales are sales made for less than the bank is owed to avoid foreclosure.Naples was the only market mentioned in the interview with CNBC.“It shows we haven’t fallen off a cliff,” Brown said. “We are here. Properties are selling.”To see the interview, go to www.cnbc.com/id/15840232?video=859022956
More good stuff from BethBrownRealtor@comcast.net
Important information about our market today!
I know many of you are concerned about the troubled financial markets and are wondering how the federal government’s actions will help resolve the crisis. Here is the latest information on what is happening in the housing market and our position on the government’s plans to rescue Wall Street. First, take a few minutes to watch today’s President’s Podcast, featuring my latest interview with NAR Chief Economist Lawrence Yun. Although the video was shot before the government takeover of Fannie Mae and Freddie Mac, Lawrence provides valuable perspective on where the housing market is heading in 2009. http://www.realtor.org/about_nar/presidents_report/_podcast_archive/presidents_podcast_marketoutlook_20080923 Second, please read Lawrence’s September 22nd commentary, which explains the reality behind the government’s proposed “investment” in the financial markets and what’s at stake for homeowners and taxpayers.
http://www.realtor.org/research/commentary_700_billion Third, review the letter I sent to Congress earlier today, outlining our position on the Treasury’s comprehensive approach to addressing problems in the financial system.
http://www.realtor.org/gapublic.nsf/pages/gses_conservatorship?OpenDocument As the most trusted source of information in the real estate transaction, REALTORS® are in the best position to counsel consumers in this confusing market. I urge you to check Realtor.org for additional information and updates in the days and weeks ahead, and share them with your colleagues. Working “All Together,” we can overcome these challenges and ensure that homeownership continues to be the most valuable investment Americans can make.
This note was posted by Richard Gaylord...NAR president......There is a ight at the end of the tunnel.
http://www.realtor.org/research/commentary_700_billion Third, review the letter I sent to Congress earlier today, outlining our position on the Treasury’s comprehensive approach to addressing problems in the financial system.
http://www.realtor.org/gapublic.nsf/pages/gses_conservatorship?OpenDocument As the most trusted source of information in the real estate transaction, REALTORS® are in the best position to counsel consumers in this confusing market. I urge you to check Realtor.org for additional information and updates in the days and weeks ahead, and share them with your colleagues. Working “All Together,” we can overcome these challenges and ensure that homeownership continues to be the most valuable investment Americans can make.
This note was posted by Richard Gaylord...NAR president......There is a ight at the end of the tunnel.
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