photo credit: SFTHQ

As with the residential real estate market, some areas are suffering more than others.  In the Kansas City metro we have been fortunate in that our market for both commercial and residential real estate hasn’t taken the drastic hits that have happened in other parts of the country.

Investors in both residential and commercial real estate have a great buying opportunity.  The market will recover.  Now is a great time to buy if you can.

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I spoke with an attorney who works in a title company I use.  He told me that banks can pursue deficiency judgments against foreclosed homeowners in Missouri.  He said that he had represented banks who did so.

As always, the information here is not to be assumed to be legal advice.  Consult a real estate attorney for the real scoop on legal questions involving real estate.

photo credit: greeblie

Notes from a presentation given by the chief economist of the National Association of Realtors:

1.  The market is at the bottom.  For those who have been waiting, this is it!

2.  Mortgage defaults will continue.  For buyers this means prices should stay at a bargain for at least a little while.

3.  Foreclosures are moving up the ladder.  People who are underwater on their mortgages may walk away rather than keep paying.

4.  Mortgage rates are going to rise sometime.  As the market gains strength, rates will rise to combat inflation.

5.  The buyer’s market won’t continue in all areas.  Inventories are starting to shrink.

6.  There may be a new loan modification plan coming down the pike.  The present one isn’t working as well as hoped.

7.  FHA may tighten their standards.  Possibly FHA will start requiring a higher down payment.

8.  The overall recovery will begin showing in the last half of 2010.  (Although there are other experts who say just the opposite.)

9.  The tax credit will not be extended again.

10.  Residential real estate will start to recover, but commercial real estate and lending will likely not recover until 2012 or after.

This is good news for buyers because there are still good deals to be had.  Interest rates remain low and the tax credits offer a good incentive to get moving on finding a home.

Sellers will continue to face buyers with lots of choices.  Staging and curb appeal is vital to get buyer’s attention.  Most buyers want a home that’s move-in ready.  If you have the HGTV or Better Homes & Gardens house, you’re going to stand out.  A prospective buyer will say to himself, “Why should I buy a house that needs work when I can buy a similar one in the neighborhood that’s already done?”  And the buyers who are willing to do some fix-up after they move in are going to ask for hefty discounts in the price.  Often they ask for more than the cost of repairs because of the hassle of having to take on both moving and home improvement projects.

No matter whether you are  a buyer or seller, a good Realtor can help you get the best deal possible.  The outlook is good.

Some new homes are being built in Shawnee.  Five basements are in process in this subdivision.  The homes will be priced in the lower $200K range.  Other subdivisions in western Johnson county have some new homes being built as well.

Most trend watchers are saying that we are probably at the bottom of the housing market downturn nationwide.  In the Kansas City metro we haven’t experienced the kind of devastation some other  cities have, but we still have been affected.

Seeing some new construction being done is a good sign in general.  Everyone is looking forward to a better housing market.  Spring may be a busy time around here.