Will the Housing Market Recover?

Welcome to Friday!


   Can it possibly be August? It certainly is, and folks, we are still in the midst of a housing crisis. Yes, I used the word, "crisis". There are definitely markets showing signs of recovery, as we have discussed in a previous post (http://www.blogging.lease2buy.com/2010/06/foreclosure-preventionimproved-housing.html), however, the rest of the market is struggling.

   An article recently cited the "6 Reasons the Housing Market Hasn't Recovered" (with credit to Luke Mullins of U.S. News and World Report), and the reasons were:

1) Labor market
2) Household formation
3) Foreclosures
4) Tight credit
5) Falling home prices
6) Selling your other home

   Two of these I found very interesting, and the first being "Household Formation". This is an angle that I personally have never thought about before, and might I add that it is a very good observation. What the author is saying is that basically, people cannot afford to branch out and purchase a home. People have fallen on hard times, and some have moved in with friends and family. Some couples who are looking to get married and purchase a home are perhaps holding off and staying in their rented apartment until things recover. Overall, a very good observation.

   The other point was that of, "Selling your other home". This has always been a problem, but is amplified during a market with falling housing prices, coupled with falling credit scores and income (or lack thereof). When you need to sell your home before you are able to purchase a new home, this takes it's toll. People are always looking to up size, downsize, or need to sell since they are moving. As we are seeing creative real estate options becoming more mainstream, such as Rent to Own (See our recent Blog post on this: http://www.blogging.lease2buy.com/2010/06/rent-to-own-transactions-move-into.html ), this will hopefully mitigate this factor from inhibiting our recovery.

   In keeping with our discussion, next week, there will be some important numbers released, which are the Construction Spending figures on Monday, and the Pending Home Sales Index numbers on Tuesday. Let's keep any eye on these together.

   Do you have any gripes about this market? What are your thoughts?

Have a Great Weekend, and Happy Rent-to-Owning !

Blogging from the heart...

Hi Everyone,

We hope you had a great weekend, whether you were looking for a home or selling a home, or whether you just chose to take it easy and unwind. Summer is definitely in the air, and the humidity is creeping up.

This entry today brings us one step close to the summer, a time for vacations and fun, but also a time where people who are looking for and selling a home begin to feel some desperation. Perhaps they have children that they would like to have situated in a new school district before the school year begins. Perhaps you have children who just graduated or are moving to college, and you want to down-size. The summer stirs up all of these different situations, and it is on it's way. We hope that the new data coming out this week supports a stronger housing market, so a lot of people are taking a "wait and see" attitude.

Of course, there are those in desperation that are only looking straight ahead towards their immediate and urgently pressing goal of buying or selling. Those that are potentially in serious trouble and face imminent problems. To those people, we say to you, albeit hopefully of some comfort to you, that, "in darkness shineth light". This is from a Latin phrase roughly translated into English, but if you read it over, it will make you realize that little rays and sparks of hope will appear. It's all about perspective. If your family and children are healthy, monetary issues are worries over lack of paper - literally. These are problems that cannot kill you, if you conquer the stress that you impose on yourself during those times. Often, it's literally, "You against You". Realize this, stay strong, and you will make it through.

You do have options, and you do have choices. We founded our company on the principles of a desperate need back in 2002, when the market was in a good position. Regardless of the market, needs and desperation are always present, just to varying degrees. Keep your head up and be strong.

Blogging from the heart !
Have a great week, and Happy Rent-to-Owning !

Flipping, Homes Available, Mortgages, Tip of the Day...

Hi Everyone,

Hope everyone had a great weekend. It was a really warm weekend here in New York, and of course, that means, "Daddy, I want ice cream", and of course, my personal favorite, the resulting sugar rush !

A few business partners/investors and I went looking at some local properties this past weekend to get a better sense of the underlying market conditions, and to potentially make some offers on some of them in order to flip/rehab, and then Rent to Own them afterwards. The funny thing is that we have actually made contact with a customer who placed an Ad on our site and we are going to see their property this week. When they heard that it was members of HomeRun Homes who are actually coming to see their home, they had a good laugh, due to the irony. We had wanted to see their home this past weekend, however, they were showing the property to people who contacted them via their Ad on our site (their "Home Available" Ad).

We have been receiving a lot of E-mails from people asking us about certain properties or homes that they desire to have, so we wanted to clarify here, that you can always check out homes and contact the owners (for free !) via the "Homes Available" link on the side of our website (www.lease2buy.com). If you do not see the property you are looking for, you can let "the world" know what you need by clicking the "Find a Rent to Own" Home link on any page of our website, and following the prompts to create your own, "Home Wanted" Ad.

Tip of the Day: When we originally purchased our primary residence, our mortgage broker quoted us a specific rate. When we got to closing, there was a 1/8 point discrepancy above the quoted rate. After some yelling and screaming during the closing (of course), the broker agreed to compensate us by cutting a check to hedge the "loss" for us. All worked out well, and this kind of thing does happen from time to time, and it may not be malicious on their part - it could just be an oversight. But the tip of the day is 2 words: "In Writing". Make sure you get every single quote, whether it's a mortgage interest rate, a home price...anything...in writing, on the letterhead of the broker, seller, etc, along with the date and their signature.


We will be doing some cool structural work on our site this week, and we'll let you know.

As always, remember to "Follow" our Blog (see the left-side of the page), so you can be notified when a new post is made, and as always, we welcome your valuable comments and insights!

Have a great week, and Happy Rent-to-Owning !

Facebook, Twitter, Podcast...

Hi All,

Hope you had a great week!

We just finished up with an interview for a new website focusing on home buyers in the 20-35 year old range, and that article should be out late month (or early June), so we will keep you posted.

It's been a really quiet week in terms of Economic News for the Real Estate/Rent to Own Market. We are just watching the market and that horrendous spill in the Gulf.
We pray that they cap it before it damages the wildlife and the local Gulf businesses. As a side/personal note - Gulf Shrimp and Gulf Oysters have always been my weakness.

We have just had our Facebook profile shortened to a much prettier address:
http://www.facebook.com/homerunhomes, and as some of you already know, our Twitter Address is: http://www.twitter.com/homerunhomes

Do you see a pattern emerging in the naming?


OK, so a News Flash: We are boldly looking to endeavor into the world of Podcasting, which for those of you who are not aware of them, they are basically Blog Posts, but in a voice recording that you can download and play on your Ipod or MP3 player.

Now, I am not crazy about my recorded voice, however, a lot of you have spoken and asked me to do this. So the answer is, "Yes", I will give it a try.

If our team is able to successfully organize the techie side of it, I will post the Podcast here on the Blog. Apparently, this saves a lot of time when you can listen to the Blog as opposed to reading it. Please be patient as we try to figure this one out - I'm off to do some voice exercises now (kidding).

Please check back Monday for more news!
Have a great weekend, and Happy Rent-to-Owning !




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