As Housing Flounders Realtors Leave Profession

As housing flounders Realtors leave profession
from MSNBC.com, reports that the National Association of Realtors expects membership to decline this year for the first time in a decade as the housing market slump affects their opportunities. The NAR ended 2006 with nearly 1.4 million members-- almost double the roughly 716,000 it had in 1997-- but expects 2007 to close with 1.3 million members, a drop of over 4 percent. Trade groups in two of the hardest hit states, California and Florida, also forecast membership drops. Colleen Badagliacco, president of the California Association of Realtors, said many agents joining in the last three years wanted to cash in on a hot market but weren't prepared to endure what she calls the "ugly perfect storm" that attracted more agents than a sagging market can support.

In California, which has the largest number of Realtors among all states, the California Department of Real Estate reported that the total number of real estate licensees in the state (which includes Realtors and non-Realtors) grew to 538,598 in July, up 5.98 percent compared to July 2006 and up 0.29 percent compared to June 2007.

Truth in Lending Act from Inman News
The 1968 Truth in Lending Act will quickly be front and center in the discussion about recourse associated with sloppy lending practices and the sub-prime fiasco. The law governs consumer credit, requiring disclosures about loan terms and costs.

The law itself, the requirements it imposes on lenders and the liability associated with violating it will be combed over by policy makers, politicians and litigators in the next couple of years.
How much were consumers told, how much did they understand and who is responsible for their lack of understanding?

The law became a hot topic in the 1980s in the aftermath of a housing downturn when interest rates skyrocketed to 18 percent for a 30-year fixed rate mortgage. During that period, ARMs took off and negative amortization loans were popular before home prices slid.

Read entire story HERE

San Francisco Luxury Home Market Remains "Firm"
First Republic Bank’s “Prestige Home Index” found, “Modest year-over-year gains in the second quarter of 2007 increased luxury home values to highs in Los Angeles, San Diego and San Francisco.” As for Orange County, First Republic found, “the luxury market remains firm, with homes continuing to appreciate modestly.” says Donna Wall of Coldwell Banker Previews in Newport Beach: “Prices are definitely increasing, but not at the rates we’ve seen … Sales are down, but prices are up. It’s just taking a little longer to sell a home.” To read more, CLICK HERE.

From enomomist Elliott Pollack on the local market: "fortunately, the economic fundamentals that have made the Greater Phoenix economy so successful in past years remain in place. In addition to offering individuals and families the opportunity to succeed, Greater Phoenix generally remains business friendly. The bottom line is that people want to move here. Data doesn't lie." Entire report HERE