The Demands of Rent Increase, and So Does the Price

The new wave is renting, and that is because of the level of foreclosures. I am sad to say that it seems our housing market is working opposite of what it should be. The sad part? Those who were unable to stay in their homes are now going to be paying someone else’s mortgage rather than their own, and they aren’t going to be saving a heck of a whole lot. The demand on renting is going up and therefore the affordability of renting is going down. 

Why Rent is Going Up 

Rent is going up for complexes and for those who are renting out houses, simply because they know they can increase the prices and many are seeking shelter now that they can no longer stay with their relatives. Houses are getting cramped with family members taking people in, and as modifications don’t get approved. Families have been planning to look for apartments as they see their foreclosure under way, meaning they had to go and start looking quickly, so they could get everything moved out. Renting will be more expensive than in the past, but with so many foreclosures being lined up families just don’t have a choice.

Rates Are Going Up

It is no secret that interest rates are going up, and they are going up steadily. Freddie Mac does a periodic survey in which it was proven that the interest rates were in fact going up and getting closer to the 5% mark. Naturally, the fluctuation in interest rates is affected by what is happening around the world, and political concerns are never really all that far from home.


To give you an idea of how the rates on the 30 year fixed mortgage have been fairing, let’s take a look at the most recent changes. The week prior to the tsunami, rates were hovering at around 4.76% on the 30 year fixed, and now they are hovering at 4.81%. It doesn’t sound like a lot, but this time last year they were at 4.99%, and the market has been nothing but a yo-yo ever since.

Mortgage rates are still somewhat low, but over time that is going to change. I know I keep saying that, but ultimately it’s the truth. There is no way that the market can stay where it is with everything that is going on in the world. Everything that is happening in Japan and Libya ultimately affects our country, but so few realize this.

The housing market did experience a setback, but we can continue to look forward to new and better things as we move forward.



-Mayer Dallal

Wise Words from Warren Buffet

Warren Buffet has been revered as the man to look to with answers regarding stocks, bonds, and much more when it comes to investments, and naturally he has something to say about the housing market too. I have to say, while I don’t always agree with everything I hear, he made a pretty good statement regarding housing and its current state along with the government and how they fit into this mess.


Buffet said; “Our country’s social goal should not be to put families into the house of their dreams, but rather to put them into a house that they can afford.” Wow! I couldn’t have said this any better, and it’s something that our country needs to get a hold of and quickly. Time is running out on our country to get wise, and we have no other option but to enforce better lending practices.

In Buffet’s opinion, there will be a recovery and he believes that it will happen within a year or so. I know that there are many who claim to believe this, and hopefully with a rash of new and young buyers we can make this all possible. A friend of mine in Ohio is seeing that there are many homes not always being sold, but many offers for lease option to buy, rent, or even for a land contract.

Our housing climate is a little different, but in some way we are seeing things a little different than we used to. My hope is that banks, lenders, and officials will adopt Buffet’s attitude, because the clock is ticking and we simply cannot afford to go through this again as a country.

-Mayer Dallal

Eight Cities Just Reached New Lows in Housing Prices

Case-Shiller, who I refer to often, gives us some insight into what is changing with the housing market. Over time, they have been following the largest metropolitan areas in order to watch what is happening and changing with the market. In October 2010, there were 10 major metropolitan cities that showed a decrease, but oddly enough there are still four metro cities that show a year over year gain: Los Angeles, San Diego, San Francisco, and Washington D.C.


This is good news, although it is just limited to one state, and for those of us who think that our businesses isn’t any better, think of it like this; we were on the upswing for so long I think we thought that we could do anything and not get hurt. Make sense? Life was good, brokers and realtors were living large, and now look where we are. Despite the frustration, we are still doing better than other states. What does that tell you? Did you know that a friend of mine that lives in Ohio told me that the city she lives in has whole streets in foreclosure? You can even Google the hardships of Dayton, Ohio. It’s not pretty, and with GM closing down and NCR closing down it is no surprise.

No matter what, choose to work hard, and keep up with what is happening. I love that I can do business in all fifty states, it’s a real blessing. It is hard to turn someone down, but the great part of my job is if I can help them get their life turned around in terms of credit, and hopefully give them advice on what they can change, to give them greater buying power in the future.

-Mayer Dallal

What We May See Next Year

With the New Year approaching, we aren’t sure what we are going to see in the coming year. This year we continued to be riddled with fear, and bad media reports were plentiful with little chance that any of it was accurate. While things are far from business as usual, we still can’t rely on all the media statistics being true to what is really happening. There are plenty of predictions to go around, and I am sure that mine are no different.


1). I don’t see jobs picking up all that much, meaning the housing market won’t pick up much either. How do I know this? It’s simple; without job certainty there is no desire to purchase a home. Who knows if they can even pay their rent? This is just a common sense assessment.

2). Foreclosures may follow suit according to how the job market goes, but we will see. I have interviewed several people that believe their jobs are in danger and have lived so frugally in order to pay down every single bill they have. They are so afraid of being unemployed, they will nearly starve now, so that they don’t have to completely starve later. Preparation is everything, and stockpiling canned goods that won’t go bad or having water on hand ahead of time is a safe bet. If not in case of bad weather, make sure you plan ahead for all things.

3). Commercial Real Estate may not pick up anytime soon, and in 2011 those who want to start businesses may have their pick of properties. I can’t guarantee anything, but what I can tell you is that unless there is a windfall of venture capitalists that are willing to throw money at start-ups it may not grow much in 2011.

It’s really hard to tell either way, but these are three of the things I don’t see changing much. I of all people remain hopeful, but realistically speaking and based on what I see has happened this year this may be the case.

-Mayer Dallal