Altosresearch.com

Reading Graph, understanding the trend, learning fundamental data are probably the best way to learn and understand the market. While there are many website provide these kinds of graph and data online, there are few for real estate investor. I recently heard a website provide data for market for professional real estate investor and wants to share it with you. It is www.altosresearch.com. It aim to provide data in graphical format for investor to learn and master the market. It support over 100 metropolitan area in U.S. The data include: median sale price, number of inventory, number of sold transaction, average days on market (DOM), etc. They charge a monthly subscription fees for more detailed graph. I call them this morning and ask for historical data to study more about the market. However, they only provide up to 1 year history data for customers. I was looking for more, like 3 , 5 or even 10 year history. Nevertheless, I still recommend this website as it provide meaningful data for real estate investor to track.

Real Estate 2008 is going to CRASH CRASH and CRASH!

Last month was an unbelievable month to me. I have seen prices in many the so called "prime area" near where I live have experience price dropped in an extraordinary fashion. Price sometimes could go down as much as 100,000 in a matter of days and weeks. With the record high foreclosure still coming to the market, tightened lending environment force out many buyer, losing confidences in real estate market, tons of bank owned property on the market, I really think year 2008 will probably the worst year for real estate price for decades in many many area. Today , the not so desirable get hit , tomorrow, even the better area will start to experience the FALL. Prices is going to toilet. It will be common to see all the equity built up last several year just evaporated over night. Even worst, many more people are thinking to just walk away from the house because they started to think foreclosure is a normal process that many people would just do. Especially with the new tax law "Forgiveness debt relief act 2007 " give people a break from not paying the income taxed owned from a shorted amount when a foreclosure sold, many more will take this "opportunity" to just walk away. There will be tons of foreclosure coming to the market at least until end of year 2008. I think the price would probably dropped back to the year 2000 level in many area. This means a property used to sold over 600K in the peak would probably go down half in value to 300K or even less. Whether you believe it or not, it's happening and can only get worst. If you're upside down already and has no equity in your house, be prepared to hold on your house for at least 5 more years. If you don't think you can Handel the payment for the next few years, call the lender now to work out a solution. Worst come to worst, be prepared and seek advice from CPA or attorney to plan for the foreclosure soon because price is going to drop even more down next few months. Whether you like it or not, be mentally and emotionally prepared to this greatest Market Fall in year 2008. See you at the bottom.

REO Auction After thought

Last week, I was busy going to the REO auction in the area I lived in. I went to the one hosted by REDC AND Hudson & Marshall. It was a great learning experience. The auction is very fast-paced and exciting, especially auctioneer speak so fast and make it more exciting. However, I didn't buy any property. The prices were a discount compared to the market price but it's not a discount that I hope for. I selected a few of the houses I'm interested to bid, and I went with my agent to see the property condition. After that, I make a note and determine the maxi um bid I'd like to bid for. Basically, I'm targeting to buy house that can generate positive cash flow for me with small down payment. The auction was very packed and price bid up quite dramatic compared to the starting bid price. I didn't end up getting the price I want so I didn't bid.
I talk with the official from the auction in the end and they said they're coming back in 6 months. I guess the market is continue to go down more with more bank owned properties popping up. I just need to continue to look for good deals and watch the market . This could be a very best opportunity to buy more houses in next few months or so.