Mike Wong Realtor, GRI

A Department of Commerce report reveals that new home sales rose 2.7 percent nationally in September as median home prices dropped to the lowest level in four years.

Sales of new single-family homes for September 2008 were 464,000, according to the U.S. Census Bureau and Department of Housing and Urban Development figures. For August there were 452,000 homes sold nationally.

Data show homes sales in the United States have been up and down since June, with August sales the lowest of the year. New homes sold in September 2007 were reported at 694,000 which is a 33.1% more than September 2008 sales.

The national median price of a new home sold in September was $218,400, down about 12% from last year, and is the lowest price since 2004 when the median price jumped to $221,000 from $195,000 in 2003.

The average price of a single-family home rose by 4.4% in September to $211,660, the highest level ever for a September in Houston. The median price of a single-family home rose 5% last month to $157,500, also an all-time September high. The median price represents the figure at which half of the homes sold for more and half sold for less. This number is also raised by the recent booming luxury real estate market in Houston averaging into the statistics.

The Texas Attorney General's office has a new proposal that may double the amount of time a homeowner has to fix a defaulted loan before going into foreclosure. Texas Attorney General Greg Abbott's proposal would require a lender to give a homeowner 45 days - up from 20 days under the current law - to cure a loan default before the home is put up for sale. If approved by the legislature the act will also give homeowners 30 days to vacate the property following the foreclosure filing.

The AG's office also plans to create a model foreclosure notice for mortgage companies to use in explaining the foreclosure process to homeowners for consumer education and protection.

JPMorgan Chase has announced they will suspend upcomming homes from foreclosure for the next 90 days while it implements a plan to help borrowers stay in their homes, the company said. Chase will hire 300 loan counselors and 150 people to review mortgages before they are placed into foreclosure to ensure homeowners were offered modifications first.

The plan will include proactive offers to refinance mortgages to more affordable terms along with a network of 24 regional counseling centers. Chase will offer borrowers with payment option ARMs alternatives such as 30-year, fixed-rate loans with affordable payments, principal deferral and interest-only payments for 10 years. Other Chase and WaMu borrowers who could experience problems also will receive help through interest-rate reductions and principal forbearance, in which the bank would forgive part of the principal. Chase also said it plans to discount or donate 500 homes to community groups, nonprofits or government programs.

Including the customers of Washington Mutual that was acquired by Chase, this program could help about 400,000 families with $70 billion in loans, the company said. It didn't estimate a cost. JPMorgan Chase received $25 billion through the U.S. Treasury Department, which became a shareholder in the bank.

Sugar Land Town Center plans to add a third office building to its Sugar Land Town Square mixed-use development at U.S. 59 and Texas Highway 6. While the national economy treads thru a recession, our local economy is continuing to grow slowly and defy the national trend.

Construction on the six-story building is scheduled to begin soon, with completion planned in early 2010. The building will contain 166,561 square feet of office space and 13,176 square feet of ground-level retail space at 2245 Texas Drive.

The complex will also be home to Minute Maid when it relocates to a new eight-story tower in January.

When completed, Sugar Land Town Square will contain 566,004 square feet of office space and 238,779 square feet of retail space. Businesses also have access to a 300-room Marriott hotel and conference center.

Warren Buffett has always captured my attention because of his humble beginnings to his unparalleled success. He proves anyone who works hard and follows a system can be financially successful. Recently Warren Buffett spoke up on cash assets and this applies to all of us.

Buffett wrote: "A simple rule dictates my buying. Be fearful when others are greedy, and be greedy when others are fearful. And fear is widespread now".

Buffett does not believe in the idea of holding on to cash in savings or money market funds when you could be buying stock. Cash is "a terrible long term asset," he writes, "one that pays virtually nothing and is certain to depreciate in value."According to activity at Berkshire Hathaway Warren Buffett has been spending much of his capital on the stock market taking advantage of opportunities.

If inflation takes hold, cash will suffer additional declines as well. Don't hold on to cash now while you wait for good news, he adds. Equities will "almost certainly" outperform cash over the next decade.

How does this apply to us regular non billionaires of the world? Yes the stock market is full of great opportunities right now I agree. However I don't have it broken down to a science like Warren Buffett to make the next big picks. I'll pick up a few opportunities Ive been watching for the past few years that I know are bargains right now. However with the unpredictable volatility of the stock market each day I'm hesitant to invest too much.

I'm sitting on a small cash reserve waiting for the right investment into the thing I know the best right now: Real Estate. There are a lot of opportunities out there right now from foreclosures to short sales. There are opportunities to open a business or become a partner in a new concept. This is the time to invest for equity. Current bank savings interest rates are too low, and Warren Buffett is right: cash is a terrible long term asset right now if you can afford to invest it.

I've watched over the past few
months as many of my clients
scrambled to spread their cash
assets among multiple banks for
FDIC insurance coverage to
protect themselves and what they
have worked hard for over their
years. Then after review with their
financial planners learning all the trouble of transfers and opening
new accounts with current
or promotional interest rates were still outpaced by inflation and costs of living. They are just preserving a depreciating asset.

I never imagined I would ever say cash is a depreciating asset. I feel guilty like I should wash my mouth out with soap for saying that after everything my parents taught me. However now Im trained to find opportunities. I see fortunes and wealth created and accumulated every day in my profession. I was raised to save, save, save. Not to spend, spend, spend. Over the past 2 months I watched as thier lifetime of investments and savings tumbled losing at least 30% of thier values. Yet over the past 8 years I have watched thier real estate investments appreciate anywhere from 200% to 1100%.

So I ask my investors and clients sitting on the fence waiting for the right time or opportunity to buy into the real estate market to get ready. Get ready, you have already missed some great deals and so have I. Investors and Realtors have been actively snapping up great properties and investments, do you still want to wait on the sidelines for the scraps and left overs, or are you ready to play in the game?

Yes real estate transactions are a process, but some deals are done and agreed on in minutes before you may ever get a chance to peek at them. Keep your eyes peeled and keep up with me as we find these opportunities.

Lets get started, 2009 is around the corner and should bring some of the best opportunities. Lets get to work to find the best strategy and properties for your portfolio.

Now are you clinging onto that fence now scared more than ever to make a move in today's market? If so you were never on the fence, instead you are still inside the chicken coupe. Take a history lesson while you are in there, some of the most famous fortunes were made during opportunities like this: Donald Trump.

There are those who sit on the sidelines and observe. They miss out and complain later and make excuses while others sieze the opprtunites and take advantage. Each position is a different risk, where do you want to be?