Real Estate's Perfect Storm

Today, we have entered into what I call the 'Perfect Storm' of Real estate where many factors have come together to cause this crisis that appears to have no end.

We had House approved legislation providing help to struggling homeowners and more importantly liquidity to the lending giants Fannie Mae and Freddie Mac which was expected to renew confidence today on Wall Street. It has not!

In fact, we have now watched Fixed rate mortgage soar today to their highest level in 1 year.

Most disturbingly,

The National Association of Realtors said existing sales resumed their decline in June after a slight rebound in May. The NAR Existing home sales declined by 2.6 percent in June, well beyond the 1 percent drop economists had forecast.

This is, how shall I say it, not upbeat news;

Typically, as home prices decline, sales will actually rise. (due to the cheaper bargain basement prices). This did not happen! and is is very shocking. And can only mean a likely a precursor to further and steeper declines in home prices or no sales.

It does not take more than having Internet access, network television or delivery of the Sunday newspaper to be aware of the fact that Real Estate is going through a difficult time here in Greater Phoenix and the surrounding towns of Scottsdale, Fountain Hills, Tempe, Peroia, Glendale, Mesa and many other cities in Arizona and unfortunately accross many parts of the Country.

As real estate professionals, we cannot control the market. However, often have the task of being the bearer of bad news. And too often, people like to shoot the messenger.

If your clients, friends and family ask. Do the difficult and be honest.

If they need to sell. Lower the price to where it needs to be. If they cannot sell, Re-Fi while rates are low enough to make a difference and payment and before credit lending standards become possibly more strict.

They will not love to hear it. However, they will thank you later.

James Wexler , Wexzilla- Please don't shoot , I am just the messenger