The housing bubble is old news – very old. For years the Fed kept interest rates low which helped fuel the biggest housing market America had seen in years. But those good times are evaporating and even dramatic price cuts can’t keep the housing market alive.

A Bad Month
October was a bad month in the housing market. September and August were even worse. The holiday season is great for most retailers, but new homes sales have always been a bit sluggish throughout December and possibly even November.

The most interesting aspect of the poor sales in October was that the median price for a new home actually dropped 13% during the month. This is the largest pricing drop in 37 years. But even that dramatic cut wasn’t enough to get sales up to the forecasted levels. This is just one more blow in an already dismal report for the housing market.

A Buyer’s Market
It is most definitely a buyer’s market in most areas of the county. New home buyers are finding terrific deals. Builders first attempted to lure buyers with extra features on homes. Then they offered to pay a portion of closing costs or to give buyers a gift card for furniture. Now, those soft measures aren’t working anymore and builders have taken a final step – they are slashing prices.

This is terrific if you’re looking to buy your first home. There are plenty of homes on the market and you can take your time finding the one that is right for you. When you do find the home you want, feel free to negotiate the price – the builder wants the house sold at this point, even if they make far less profit than they originally anticipated.

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The last few years have been great for homebuyers. Banks seemed to be dying to offer us home loans and the Fed kept interest rates conveniently low. House prices were going up and everyone wanted in on the joys of home ownership. Now, however, the overenthusiastic banks are starting to pay the price.

Subprime Lending
There are two areas of the mortgage market – prime and sub prime. The prime market includes the average and above average citizens and companies who pay their bills on time, make plenty of money and are an overall great banking customer. There is virtually no risk in giving loans to individuals in the prime market. They are an excellent gamble.

The subprime market is a much more exciting gamble as it doesn’t always pay off. Subprime lending is a practice of offering loans and mortgages to candidates who would normally not qualify for the money. Subprime borrowers might have declared bankruptcy in the past, have low credit scores, have foreclosures or a history of untimely payments.

Often these borrowers clean up their act for a time under the guidance of a credit counselor, apply for and receive a subprime mortgage. Of course the corresponding interest rate and fees may be considerably higher than a standard mortgage as the bank must mitigate its risk. The subprime market is huge and there is a great deal of money to be made for banks willing to take the gamble. (more…)

Real estate is a fiercely competitive marketplace, and the top players know how to stay well ahead of the competition. New resources spring up daily, and to become or stay successful in the field you must search out the newest techniques and services on a regular basis.

Education is critical in the field of real estate. Agents and brokers must not only be licensed, but know the ins and outs of the industry as a whole as well. Real estate stretches far beyond the family home for sale. It ventures into commercial properties, land acquisitions, rentals, and more. Each style of property has its own rules and regulations, and those in the industry can not take chances with their knowledge in a particular field. (more…)

Building is at the heart of the economy. Some companies build service areas or develop new product ideas. But other companies just build. With the enormous amount of growth the country has seen in recent years and is forecasted to continue seeing, it’s no wonder the construction industry has been growing by leaps and bounds to keep up.

Whether you’re building from the ground up or simply redesigning and remodeling an existing structure there are plenty of areas to consider. Supplies, labor, design and inspection can keep the most seasoned construction company on its toes. It also doesn’t help that the government likes to change and update requirements and code regulations on a rather frequent basis. (more…)