In its most recent market forecast, Veros Real Estate Solutions predicted that the Houston and Dallas metro areas in Texas would show the strongest home price appreciation in the next year[1]. In fact, Texas cities as a whole are expected to lead the nation in appreciation, taking four of the predicted “top ten markets” in the study.

Predictions for strength also apply to some California markets, which are not as “robust” as hoped but are holding steady, along with Illinois, Iowa and Alaska. Florida, which, thanks to the growth in Miami had been expected to come out of its real estate slump in the relatively near future, struggled, with four metro areas taking spots in the projected weakest markets for the coming year. However, Florida and Nevada, both “hardest hit” states, do appear to be depreciating at a reduced rate, which could be good news in the long run since this is, according to the study, “tangible indication that things are getting better as time moves on.”

Other states with good forecasts are Louisiana, Missouri, Arkansas, Oklahoma, Nebraska and South Dakota.

Do you think that these positive forecasts will hold?

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Nearly 80 percent of homeowners believe that their real estate agents are selling too low, according to a recent HomeGain survey, and the disparity between market reality and seller expectation is throwing a serious monkey wrench in market movement[1]. While real estate investors and conventional home buyers are in the process of taking their pick from the massive, discounted inventories at their disposal, homeowner optimism about the value of their homes has climbed 3 percent since last quarter and 18 percent of sellers are sure that prices are going to rise in the next six months. The same survey indicates some pretty serious buyer discontent, as 70 percent believe that the homes they are viewing are overpriced for the times and the value.

This might be a good thing when it comes to getting a handle on inventory; if sellers will stay in their homes and “wait out” the current low prices, maybe some of the foreclosure and REO inventories will be depleted. Do you think this standoff is good or bad for the market?

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A St. Louis real estate investment firm facing serious legal troubles could lead to a number of lease-purchase clients being left out in the cold – literally – if the company goes under[1]. Eighteen Investments, which markets its properties as Bellington Realty, appeared to have everything under control just two weeks ago as it bought up foreclosures in the area “by the bushel.” However, now five banks in St. Louis are now bringing suit against the company for more than $7.5 million in addition to foreclosing on properties.

Since 1983 the company has been buying and renovating distressed properties, but recently had moved into renting properties and lease-purchase transactions. However, these transactions may have been more desperate measure than careful business decision, since several of the homes are now being foreclosed on.

The company has stressed that to its knowledge, its rent-to-own buyers are not being displaced by foreclosures. A number of tenants are suing, however, claiming otherwise.

Do you think that lease-purchase agreements are viable in this market?

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In today’s real estate market, it is as important to be able to make people aware of good investing opportunities as it is to be able to spot those opportunities yourself. For real estate investors who do not want to go back to long-term investing strategies but want to continue to invest largely in residential real estate to generate short-term income, the game is more about marketing than ever. The ability to navigate the web effectively and “touch” buyers and sellers in multiple ways via multiple media has changed the way real estate investors network.

Do you think that this new emphasis on marketing in real estate investing is a positive or a negative development?

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Earlier this month, the Federal Reserve released its Beige Book, a market analysis report that helps the Federal Reserve Bank and the Federal Open Market Committee (FOMC) decide how to handle interest rates. Thanks to the most recent report, you can expect to see interest rates hang tight at record lows while housing markets in most of the country continue to stagnate thanks to the artificial – and now defunct – stimulation from the federal tax credit[1].

Most districts in the country did not report that prices had fallen significantly, but vacancy rates remain elevated and sales themselves are down. Furthermore, only three areas in the entire country – Cleveland, St. Louis and Minneapolis – reported residential construction increases. Everywhere else declined.

Overall, only Cleveland and St. Louis showed real signs of real estate recovery in July and August, according to the Beige Book. And until the job market joins in the recovery, expect more of the same.

Do you consider this good news for real estate investors or bad news?

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In a market where everyone is looking for – and finding – real estate bargains, the term “TLC,” tender loving care” has become nearly ubiquitous in the real estate market. Historically, agents have used the term to describe properties that are going to need some renovation before they are in ideal condition. The phrase “in need of a little TLC” tended to indicate that a good deal was in the mix, as long as you didn’t mind a little paint and plaster.

In the past few years in New York City, however, the term TLC has been stretched to the limit. In fact, some brokers are using the phrase to indicate the need for a gut renovation and complete overhaul[1]. Buyers are confused, as it is nearly impossible to predict what an apartment that needs a little TLC is actually in need of any more. In this market, it is more important than ever when you do deals that you or someone you trust check out the property in person before you buy. What is your personal definition of “TLC?”

Thank you for reading! Your comments and questions are welcomed below.

If the current administration wants to keep power in Congress this fall, then they may have to forego more housing “repair” efforts in the immediate future, says one financial services policy think tank in a recent report[1]. The Cambridge Winter Center believes that President Obama is caught in a trap of his own making as he tries to stem foreclosures without helping either mortgage bond investors or homeowners who bought homes they could not afford – two “parties that [voters] don’t want to help.”

While the administration has $50 billion in the fund to fight foreclosures, only $200 million of that has been disbursed due to a desire to appear, at least on the surface, to only help responsible borrowers. With elections coming up, a more aggressive program is politically unwise and most people predict that the administration will have to take broader action on the overall economy due simply to the “very few options left to address housing directly.”

It seems to me that this issue should not be politically motivated, and I’m concerned that we are so accustomed to having politicians “buy” our vote that this is simply another part of the analysis. Personally, I think that the government is hindering the recovery rather than helping, and I wish they would actually allow the market to stabilize and let us get through this thing and move on with our lives. Do you think that the housing market can recover on its own, or do we need more aggressive action on the part of the federal government?

Thank you for reading! Your comments and questions are welcomed below.

Thanks to the deep plunge in the housing market over the summer following the final expiration of the tax credits, analysts and experts are starting to believe that it will not be possible for the federal government to haul the housing market out of the quagmire in which it is currently stagnating[1]. Economists argue that buyers will pour in if prices are truly allowed to crash, rather than being artificially pumped up – such as it is – by government programs that are designed, and only temporarily succeeding in, stimulating the economy.

In fact, many economists believe that the continued housing woes make all consumers, homeowners and otherwise, reluctant to indulge in the spending that is necessary to truly stabilize the economy. It is something of a catch-22, since plummeting home values will create the same mindset about consumer spending, at least for a while. The question is which period of time will ultimately be shorter, and which option will lead more quickly to the beginnings of a real recovery.

Do you think that the administration needs to back out before the recovery can begin?

Thank you for reading! Your comments and questions are welcomed below.

As is usual in today’s real estate market, good and bad news temper each other when it comes to the progress being made in loan modifications. While the lending industry has successfully completed 1.13 million permanent loan modifications in 2010 and delinquencies of 60 days or more have dropped by 20 percent since January, analysts suggest that the drop in delinquencies is not due to loan modification success, but rather the massive rise in completed foreclosure proceedings as lenders work to get the defaulted mortgages off the books and keep cases moving through the pipeline[1].

So is this good news or bad? As usual, the answer is probably “both.” These properties and defaulted mortgages have to get resolved one way or the other before the market can recover. These numbers indicate that there are multiple means of resolution, and lenders are making the most of their options – while helping over 1 million people stay in their homes. Ultimately, that means progress for everyone involved in this messy process.

Do you think this high volume of loan modifications is a good thing?

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Since March, first-time home buyers have been beating a retreat from the housing market, with only 39% of all home purchases in July coming from this target demographic (down 48% from March of this year)[1].

While most analysts credit the precipitous drop to the expiration of the tax credit, a number of media outlets have also been publicizing many public officials’ “new” opinions on homeownership, including that maybe it should no longer be considered the investment that it once was. Campbell Surveys, a real estate market analytics company, predicts that by fall first-time home buyer activity could be as low as 30%, placing a downward pressure on home prices.

Do you think that the federal government should reinstate the tax credit, or is this plunge something that we just have to get through? Should home ownership still be a goal for the “average” American?

Thank you for reading! Your comments and questions are welcomed below.