| Real estate bubble talk seems to be the most | | | | These mortgages are not so new, but being peddled |
| prevalent question I'm asked by the national media, | | | | today to home buyers that probably are |
| be it print, online, or TV. The problem is that the | | | | over-borrowing if they need an Option ARM. |
| market national real estate is comprised of thousands | | | | Consumers should know that these loans include |
| of micro-markets and making a sweeping | | | | negative amortization, which is not in their short or |
| generalization about the status of residential real | | | | long term financial interest. |
| estate in the United States doesn't serve anyone. | | | | Are incentives going to motivate buyers to sign |
| After all would these journalists want their own home | | | | contracts? |
| price deflated based on some broad market hype? I | | | | Nash: In new construction they are quite common, |
| don't think so. Here are some common questions | | | | and do motivate buyers, but many buyers have told |
| with my response. | | | | me for years that they feel incentives are factored |
| Is it a buyers market? | | | | into sales prices, or that prices are raised to include |
| Nash: Buyers have more weight in the market then | | | | the price of the incentive. In existing homes, |
| they have had in the last five years, but the market | | | | incentives are trying to break in to the process, but |
| is balanced and doesn't favor either buyers or sellers. | | | | are being met by buyers with resistance. Most |
| Do you think there is excess inventory of unsold | | | | buyers want to cut to the chase and get the lowest |
| homes? | | | | price. One exception is flat-screen televisions, they |
| Nash: The supply of resale homes is certainly up and | | | | can entice many buyers, especially men. |
| the number of new construction condos is staggering. | | | | Seller concessions on resale homes appear to be the |
| Most markets have been vacillating between warm | | | | buzzword for 2006. |
| and cool in 2006, so I am waiting for the prospect of | | | | Nash: We are seeing home sellers be much more |
| pent-up buyer demand to turn into sales before | | | | flexible in 2006 on repairing or crediting buyers for |
| making any forecasts, which everyone is waiting for. | | | | inspection issues. Also they are more likely to help |
| It's not easy to read the market at this point in time. | | | | with closing costs. But, they are not giving much on |
| What about 2007? | | | | price. |
| 2007 should be a consistent year sales wise for real | | | | When is your annual report on "What's In, What's |
| estate. People have to remember that housing is also | | | | Out with Homebuyers in 2007" released? |
| shelter and does not exactly mirror the stock | | | | Nash: The second week of December. It has some |
| market. People need to live somewhere. Consumer | | | | interesting new trends that are the result of the |
| confidence is on the rise, and with energy prices | | | | correcting market in 2006. |
| falling, home buyers that have stayed on the | | | | How can home buyers, sellers or real estate agents |
| sidelines, should make a purchase in 2007. | | | | participate in the survey that is part of the report? |
| What about the new Option ARM mortgages? | | | | |