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The Market: It Is What It Is!!


If you have been following the Real Estate market in general for the past 12 months for those of you in this business as a career you have come to the conclusion that its an opportunity for great amounts of income or simply trying to stay alive and not loose everything you have.

The declining market has its pros and cons. Such as any other career thatís tied to any economic factor.

ďAt the top of the market you can make some serious income and great opportunity for massive amounts of equity if you purchased homes prior to the equity explosion. Many millionaires were made in the last few years and many buyers have virtually lost everything they have due to poor timing in the marketĒ. says Rick Kapsin a 28 year Real estate veteran in California. ďI have worked for many new home builders over my career and have seen the worst and have seen the bestĒ All in all itís the same market as previous years. In 1980 Rates were in excess of 20%. Imagine that! Rates are in single digits and prices are back to reality.

In reality, the Real Estate market has been effected by the subprime mortgage market, Itís as simple as that!!. Lenders closed loans on buyers that were forclosures waiting to happen. Yes, its good for all to have the American dream of home ownership but, let face it. Why were lenders allowed to close loans that are almost a guaranteed to foreclose.Buyers who closed on these subprime loans had high debt ratios, 600ficos credit score or lower and no cushion for finances. It affects everyone who can make payments that want to purchase a home currently.

Honestly, there should have been tighter guidelines for the narrowly qualified buyers to avoid the high foreclosure rates. Foreclosure rates are up approx 800%. Not good. And it will go higher. Itís not over yet.

The current condition of the market affects everyone and every career. All of us in the Real Estate career have been effected by this business. We have gone from large income potential to minimum wage conditions. Say Rick Kapsin.

Hopefully, anyone smart enough to save their money in the last few years understood that you need multiple streams of income to stay alive when the market changes.

People are frantically searching for modes of other income sources until the market returns in the next 3-5 years. Selling assets to pay there bills. Selling there dream home because the payments are to high. Dipping into saving plans or investments.

Until the Financial Market stops rolling downhill there will be no stability in the market.

My prediction is summer of 2008 the financial market will stabilize. If the Federal government steps in to increase FHA loan limit to 500K or higher this will drastically jump start the market. But donít expect this until the first quarter of 2008.

In fact, all good things must come to an end. But the light at the end of the tunnel for another boom is not far off. So capitalize on the low prices and incentive programs out there. There are some great deals to be had. When the market returns you will make a fortune on your equity position.

Hang in there it will get better!!!

Rick Kapsin


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