Real Estate Market Bulletin Blog

The latest news about the Massachusetts Housing Market
March 15, 2010

How far to the bottom?

Author: admin - Categories: Economic Indicators, Employment, Foreclosures, Real Estate News, home sales trends, real estate trends - Tags: , , ,

A number of conflicting reports suggest that while the housing market recovery has yet to start, we are closer to the end of the carnage than the beginning.

Recent stats:

  1. The Massachusetts Housing Partnership reported that a potential 65,000 or more homes could add to the state’s inventory of unsold homes due to pending foreclosures, or homes likely to be foreclosed on even after mortgage modifications.  This possible 2nd foreclosure wave would add as many homes to the market as are typically sold in a given year, suggesting further price depression.
  2. At the same time, the Fed’s March 3 Beige Book reports slow but steady strengthening of the economy, including stabilizing employment and rising wages, all of which will help reduce the chance of future foreclosures as those who still have their homes and jobs will be in a position to keep both.
  3. Ultimately, home prices are the best gauge of market health.  Those prices have been stopped declining in most parts of the US and are starting to rise in some, according to the Case Shiller index. See S&P PDF file with the current national home price rate of change.
June 1, 2009

Real Estate Internships on the Decline

Author: admin - Categories: Employment, Real Estate News

In the current market it should come as no surprise that paid and unpaid real estate internships are becoming harder and harder to find.  Interns are typically viewed as expendable to companies and in the current economic downturn it seems only natural to cut back on hiring interns.  But could this initiave hurt companies more than they know?  Interns are often hired as full-time entry level employees upon graduation since they already know the philosophy, mission, and environment of the companies they interned for.  However without this natural progression, companies will be hiring their new employees from a much bigger pool of potentially lesser qualified individuals.

College students in Texas attending Texas Christian University are finding it harder and harder to get their foot in the door in the Real Estate Market.  Kelly Faerber, a senior majoring in TCU’s real estate market was lucky to get an internship with N3 Real Estate, saying ““I talked to a lot of companies and a lot of them said they are having to cut back, but I think students see how important it is to get the experience…I would much rather not get paid and get the experience than have to miss out on the opportunity.”

Glen Hahn, the CEO of Fort Worth-based Innovative Developers Inc. commented on the situation saying “We have offered an internship for several years, but what we’re seeing different this year is the number of activities that we have for an intern to do, we want the experience to be productive for that intern; be able to bring them in and show them the inner workings of a real estate development company and give them some job experience. But at the moment, our number of new projects has skinnied down a little bit, so it’s disappointing, but I don’t know that we’ll have an intern this year.”

Real Estate isn’t the only market where students are struggling to attain internships but it certainly is one of the hardest hit markets in this economy making it increasingly difficult for interns to get their foot in the door.

Read more here

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May 6, 2009

Real Estate Market Dependent on Employment Security?

Author: admin - Categories: Employment, Real Estate News

The Real Estate Market may be well on its way to recovery, however standing in its way are still escalating job losses and lack-luster consumer confidence.  In response to this, some realtors are catching on and offering “protection packages” similar to what Ford and Saturn and other car dealers have been offering on their commercials.

As an example, “Long & Foster Real Estate” is offering a job loss protection program for home buyers.  The sellers of the home will purchase the plan for a flat fee of $500 and offer the protection to buyers.  If buyers lose their jobs within the first two years after their purchase, the protection plan will pay up to $1,800 a month toward mortgage payments for six months.“People are afraid if they buy a house, they will get a pink slip the next day,” said Scott Shaheen, a Richmond regional vice president for Long & Foster, “This protection program takes out the fear level.”

Similar to what Long & Foster Real Estate is offering, LifeStyle Builders and Developers Inc., is offering up to $1,500 a month toward the mortgage, at no cost to homebuyers should they find themselves without a job.

Whether or not this is what the Real Estate market needs to jumpstart it and turn the past months of downturn to an upturn we will see, but it certainly can’t hurt.

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