Soft But Not Dead

Looking back to these past few months we get a general picture of falling housing prices, suggesting once more that Newton's Law of Universal Gravitation, encapsulated in the dictum "Everything that goes up must come down" is absolutely true and that, furthermore, it applies even to Real Estate. But when it comes to housing prices the real question becomes:"Come down from where?"

According to the Office of Federal Housing Enterprise Oversight (http://www.ofheo.gov/) the average price of a house rose by only 1.2 percent in the Second Quarter, the smallest gain since 1999 - but a gain nonetheless. OFHEO reports, furthermore, that the past year has seen the sharpest slowdown in the rate of growth since the Office began to keep track of the housing price index all the way back in 1975. Even so, average prices are still up by 10.1 percent compared to a year ago.

This is much stronger than the index published by the National Association of Realtors (http://www.realtor.org/), which showed a rise of only 0.9 percent in the year to July. Economic analysts generally speaking prefer the OFHEO index, since it is thought to be more reliable because it tracks price changes in successive sales of the same houses over time and therefore, unlike the NAR index, is not distorted by a shift in the mix of sales to cheaper homes.

All of which, then, brings up to mind the fact that it is not only the foresaid Newton's Law that applies to Real Estate, but also another very important scientific theory as well - Einstein's Theory of General Relativity, which can be encapsulated in the dictum "Everything is relative".

‘Stickiness' is a noun used in Economics to describe a situation in which a variable is resistant to change. Price stickiness, therefore, reflects the fact that asking prices of interests in land remain high and even increase at a time when demand lowers. For example, nominal asking prices are often said to be sticky. Market forces may reduce the real value of interests in land, but prices will tend to remain at previous levels. Stickiness normally applies in one direction, which means that a variable that is "sticky downward" will be reluctant to drop even if market conditions dictate that it should.

Price stickiness, in any market, is responsible for and reflects some confusion that exists between nominal and real values and gives rise, moreover, to a particular phenomenon known as the ‘Money Illusion'. Money illusion refers to the tendency of people to think of prices in nominal, rather than real, terms. The term was coined by John Maynard Keynes in the early twentieth century.

Money illusion does influence people perceptions of outcomes. Experiments have shown that people generally perceive a 2 percent cut in nominal income as unfair, but see a 2 percent rise in nominal income where there is 4 percent inflation as fair, despite the fact that the two situations are almost rational equivalents. The same happens in Real Estate, where the trend is for asking prices to remain high or even increase when selling prices are dropping.

Furthermore, money illusion means nominal changes in price can influence demand even if real prices have remained constant, thus causing what it is normally referred to as ‘market disequilibrium'. Adam Smith maintained that the free market would tend towards economic equilibrium through the price mechanism, that is any excess inventory will lead to price cuts which will decrease the quantity supplied and increase the quantity demanded.

There are, however, exceptions to the rule. One such exception is the situation wherein market participants are always trying to take advantage of the pricing system, thus infusing some dynamism in the market. This situation arises in markets that are ‘imperfect', such as Real Estate, where information about goods is not shared equally and evenly by market participants.

This explains, therefore, the OFHEO price index as above and its increase of 10.1 percent compared to one year ago, which increase is by no means unique to the United States. A similar study conducted by the Office of Federal Housing Enterprise Oversight to compare markets outside the United States with the domestic ones has found that prices in Canada are up 10.8 percent to a year ago. Denmark tops the list with a staggering 23.6 percent increase, while the lowest index goes to Japan, where housing prices have actually decreased to the tune of - 3.9 percent over the last twelve months.

Luigi Frascati

Luigi Frascati is a Real Estate Agent based in Vancouver, British Columbia. He holds a Bachelor Degree in Economics and maintains a weblog entitled the Real Estate Chronicle at http://wwwrealestatechronicle.blogspot.com where you can find the full collection of his articles on Real Estate Economics and Finance. Luigi is associated with the Sutton Group, the largest real estate organization in Canada, and is based with Sutton-Centre Realty in Burnaby, BC.

Luigi is very proud to be an EzineArticles Platinum Expert Author. Your rating at the footer of this Article is very much appreciated. Thank you.

A Brief History of Gated Communities

There was a time in the long ago past of the human race when we lived in secure private communities. They were called caves. They were surrounded by large stone walls, and the only access to them was through a single narrow gate. The gate was guarded by a big burly fellow whose purpose was to make sure that the only people, or animals that came inside were the ones that belonged there. This concept of living served us for a very, very long time, and there is no doubt that deep inside the collective memories of our species, there is a longing to return to that warm fuzzy feeling of the cave. You knew that there was much unknown, and great danger outside, but inside you were free to live, enjoy the company of people who were pretty much just like you, and raise your kids safely.

There were not enough good livable caves to support the population growth of mankind. Eventually we had to find another way. Right from the start, settlements outside of the cave were protected by some sort of barrier, with access limited and controlled. As time went on, and the population continued to increase, we began to build the first cities, with thick stone walls, and gates to control entry.

The idea of a gated community inside the walls of the city began early. This double protection was something that was pretty much restricted to the very wealthy. The smaller walls around neighborhoods inside the thicker walls of the city served not only to protect the residents, but was the beginning of the idea of exclusion. When the smaller gated communities began to add some basic amenities such as markets and schools behind their guarded gates, it served more to isolate them from the others' outside more than any other reason.

In recent times, the rapidly exploding population and the advent of bomber aircraft, and ballistic missiles have made the city wall obsolete. The city, no longer contained by stone, expanded and spread. The need for housing, and the increasing crowding and crime associated with inner cities led to the creation of suburbs. These sprawling bedroom communities became the new population center, and at first, the residents felt a strong sense of safety there. The suburban communities also provided the shared amenities that had marked the cities. Schools and markets were close. Recreational facilities were close. Crime was far away.

The wealthy still had that sense of exlusiveness, and this led to the first of the modern gated communities in the suburbs. The first ones consisted of large estates surrounded by stone walls, but most importantly they had limited access. This was accomplished by either manned or unmanned gates. They were also mostly residential in nature, with markets, schools, and even parks, being located outside the walls. There was another trend growing in the suburbs and being fueled by the advent of mass media. Televisions were bringing the violence and crime of the entire nation into people's living rooms, and eroding the sense of safety and security. They began to realize that they were not as secure as they had thought, and the time became ripe for private communities for the middle class.

Natalie Aranda writes on family, home and history. The idea of a gated community inside the walls of the city began early. This double protection was something that was pretty much restricted to the very wealthy. The smaller walls around neighborhoods inside the thicker walls of the city served not only to protect the residents, but was the beginning of the idea of exclusion. When the smaller gated communities began to add some basic amenities such as markets and schools behind their guarded gates, it served more to isolate them from the others' outside more than any other reason.

What you need to know about a Rental Agreement?

A rental agreement is a legally binding contract between the landlord and the tenant that outlines the terms and conditions of the rental.

This contract document is made up of many components. They are:-

1. The rental agreement should be very specific on the subject of abandonment. It must clearly define the landlord?s options if the tenant leaves the property without notice?

2. It should outline the alterations that a tenant can make to the property. The rental agreement should clearly state the kind and extend of the alteration that is allowed or not.

3. The rental agreement should touch on the subleasing. As subleasing is very popular today, the rental agreement should state your stand very clearly on this subject to avoid future misunderstanding.

4. The rental agreement should also state very clearly what will happen in the case of defaulting on a payment. The late fees should also be outlined in the rental agreement. The tenant should know up front how much they will be penalized.

5. As a landlord you should have access to your property for inspection. The rental agreement should detail when and how you will be able to enter the property in order to inspect it, etc. State laws vary on this subject and your rental agreement should conform to the law of the state.

6. The rental agreement should state who is responsible for the maintenance of the property. If it is a joint responsibility, it should clearly state who is responsible for what.

7. Payment methods should be outlined on the rental agreement so that the tenant knows how they can pay the landlord.

8. Like maintenance, utilities are a huge part of any rental agreement. It should be clear on who will pay what bill, as well as which utilities are included in the monthly rent.

All of the above are important components to any rental agreement. In addition since state laws differ, a rental agreement can have additional clauses depending on where you are located.

The first place, and usually the best place, that you may want to search for a rental agreement is on the Internet. There are several websites that will supply you with the rental agreement form that you are looking for. One of the more reputable services is located at www.rentalagreements.net.

You have to pay a small price to purchase the rental agreement that is appropriate for your state but it is much better than drafting your own rental agreement and taking the chance of missing out on something that is crucial.

The other way to get hold of a rental agreement is to get in touch with a real estate agency. If you are lucky, they may even be able to supply you with a sample rental agreement that you can customize and use as your own.

A rental agreement is something that you must have if you are going to be renting out any property. State laws differ and your rental agreement needs to meet the laws and requirements of your state in addition to also outlining every aspect of the lease in detail.

Ken Fong http://www.therealestatescoop.com Terra Bites of Real Estate Information

Houston Real Estate Agents

Houston, Texas has one of the most vibrant real estate profiles in the country because of the huge demand for housing in the area. As a result, there are now a large number of real estate agents who want to get in on the action that the real estate market in Houston provides and evidence to this are the thousands of online leads that a person can get from various search engines. Such is the result of the recognition by real estate agents that advertising online can provide them access to a wider market. However, having a website nowadays does not ensure success in the real estate business given that there are thousands of real estate agents who also have websites. Given this, real estate agents, especially those based in cities like Houston where there is stiff competition among agents, need to make their websites stand out among other websites so that they would get the attention of investors and homebuyers.

One way to make websites stand out

One of the keys in having a high traffic website is being prioritized by search engines when they provide leads to Internet users. Given this, real estate agents that advertise online need to take the necessary steps to help increase their website?s search engine visibility. The good news is that there are a number of simple ways that can help real estate agents do so, which includes understanding and applying the concept of search engine optimization or SEO. This is very important because effectively applying SEO can help real estate agents become more visible to buyers and sellers of real estate. Basically, applying SEO involves building a website that is well organized and which has very relevant content. Examples of which include putting relevant phrases that buyers and sellers search for and optimizing titles, text hyperlinks, and headers.

Given the stiff competition among real estate agents in places like Houston, which has a very vibrant real estate profile, real estate agents need to take steps that can help them stand out among their competitors. One way they can do so is to build websites, which can help them gain access to a larger market of real estate sellers and buyers. However, real estate agents also need to make sure that their websites would also stand out among the thousands of websites of other real estate agents, which they can do by applying the concept of search engine optimization or SEO on their website.

Houston Real Estate provides detailed information on Houston Real Estate, Houston Real Estate Agents, Houston Real Estate Schools, Houston Real Estate Listings and more. Houston Real Estate is affiliated with Austin.

Miami Real Estate

Miami is considered the largest urbanized city in the state of Florida. With the metropolitan area surrounded by the Miami River, Biscayne Bay, the Everglades, and the Atlantic Ocean, Miami a great place for residential homes and recreation areas.

Types of Miami Real Estate

With the ever increasing demand for Miami real estate, properties both existing and new are readily available. You can choose from affordable homes to luxurious mansions, condos, lofts, apartment buildings and even pre-construction buildings. Whether it be for residence or commercial properties such as hotels, restaurants, offices or other income properties, you can find something that will suit your taste. Properties range from $650,000 to millions of dollars, and surely you can find something that will suit your budget. Properties are available in Miami Beach, Coconut Grove, Coral Gables, Brickell, Surfside, Bal Harbor, Key Biscayne, Aventura, Fisher Island, downtown Miami, Lincoln Road, and more.

Guidelines

Wherever you may want to find a property in Miami, you can find a realtor who can help you purchase that piece of Miami real estate that is right for you. He or she can present you with photographs, videos, or virtual tours of the properties available. Your realtor can find a property that will match your budget. He will also guide you through local taxes and mortgage rates. And be sure to seek the services of a member of the National Association of Realtors who will strictly uphold the Code of Ethics of the association.

Amenities

What contributes to the beauty of Miami real estate is the richness of the cultural diversity that exists in this city. Aside from the local Americans, the city hosts a rich population of Latin Americans and people that reside in the Caribbean. Miami also has a healthy number of tourists, not to mention many celebrities who call Miami their home. The city has at least two prestigious universities - University of Miami and Nova Southeastern University - and hosts athletic teams such as the Miami Dolphins, the Florida Marlins, and the Miami Heat.

Miami Real Estate provides detailed information on Miami Real Estate, Miami Waterfront Real Estate, Miami Beach Real Estate, Miami Luxury Real Estate and more. Miami Real Estate is affiliated with Downtown San Diego Real Estate.

Tucson Real Estate

Tucson real estate is flourishing, and it's easy to see why. Tucson is known for having ideal weather - it has a sunny, dry climate that makes it very attractive not only for tourists, but for people looking to settle.

Booming

The boom in Tucson real estate started in 2004, when total sales volume of homes in the vicinity increased by a little more than 55 percent. In the same year, the number of residential units alone rose from around 960 in November to a whopping 1,200 only one month later. Tucson real estate deals are also closed a lot faster than the time it takes to close a deal in other states. In fact, nearly 60 percent of homes in the Tucson area get sold within 30 days after it is listed. This is attributable to the fact that most Tucson homes are considered to be very good deals for buyers; the city is very livable, and the people are very accommodating.

The trend carried on in 2005 and will probably carry way into 2006, especially because the Tucson economy has become conducive to young families, recent graduates and even retirees. A lot of aggressive buyers and investors are taking advantage of the drift and are staring to put their money into Tucson real estate, which is predicted to be very profitable.

Preparing to buy

It?s a good idea to consult expert Tucson real estate agents if you are looking to buy property in the area. Most real estate agencies offer free consultation to allow you to see the costs of real estate in the area, what loan options are available to you, relocation advice etc. As an added service, some agencies even offer free one-time cleaning services for your new Tucson home.

Tucson Real Estate provides detailed information on Tucson Real Estate, Tucson Real Estate Agents, Tucson Residential Real Estate, Tucson Commercial Real Estate and more. Tucson Real Estate is affiliated with Scottsdale Arizona Real Estate Agent.

What is MLS Listing and How to Get its Membership

MLS listing is a database that allows a real estate broker representing a seller to widely share the information about the property for sale with real estate brokers representing buyers. It enables a real estate broker to list all the property he wants to sell to the potential buyers. The real estate broker can also retrieve all the information about the properties for sale in a particular area, whether listed by his own brokerage or others.

The MLS acts as an exchange for the real estate agents. But the realtors need to take membership to the MLS in order to put information or to collect information about the other real estate agents. Membership to MLS exchange is only for those people who are part of a trade union. A properly licensed broker, who chooses to neither join the trade association nor operate a business within the association?s rules, cannot join the MLS. Similarly, a person who is selling his/her own property cannot put up a listing directly into the MLS.

The realtors in United States can join the National Association of Realtors (NAR), in order to list their property on the MLS. But the NAR restricts the limit of information shown on the MLS by the real estate agents. The Department of Justice (DOJ) has filed an antitrust lawsuit, claiming that NAR?s policy restricts brokers from establishing websites that show home sellers information that is in the MLS. The DOJ's antitrust claims also include NAR rules that exclude certain kinds of brokers from membership in MLSs. The real estate brokers in Canada can put their listing by membership to the Canadian Real Estate Association (CREA).

There are alternatives available for MLS listing There are websites which allow the licensed realtors or non-realtors to put up their property for sale as well as allow the prospective buyers to search for House/property, without any cost.

http://www.multiplelistingservice-us.blogspot.com

http://mlstown.com