| The housing pendulum has swung in the
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| | right now, buyers have the upper hand.
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| other direction and created a tough real
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| | They have more choices than ever.
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| estate market for sellers. And home
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| | And this brings us to the root of today's
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| buyers are feeling the effects of tighter
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| | housing market woes. For sellers, the
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| mortgage qualification. What will happen
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| | pressure from more homes coming on the
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| now?
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| | market, exacerbated by the sub-prime
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| The Real Estate Pit And The Mortgage
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| | complexities, will force them to lower
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| Pendulum
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| | prices if they have no choice but to
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| What horrors await home sellers in the
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| | sell. Home sellers will also have to wait
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| dungeons of the housing slump?
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| | even longer for their home to sell. I
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| News headlines bombard us daily about the
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| | have seen sellers who just break even on
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| plight of the real estate market and it's
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| | the sale of their homes and some make
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| wide reaching effects on the economy.
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| | very little profit, depending on how long
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| You've read the stories of record numbers
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| | they have owned their home. There are way
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| of foreclosures, the sub-prime mortgage
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| | fewer home buyers these days. There is
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| fiasco, and declining home prices and
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| | more about this at a website with free
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| sales. There is even talk of a recession.
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| | information and resources that is helpful
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| What we all need to remember, however, is
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| | to both buyers and sellers.
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| that most news reports that you read are
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| | For home buyers it may seem that this is
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| based on national housing information. As
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| | their heyday and super bargains are in
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| you may know, real estate is local and
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| | the offing. To some perhaps, but to many,
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| not every area of the country experiences
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| | the mortgage pendulum is severing their
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| what is presented by governments,
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| | ability to qualify for a mortgage that
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| associations, and media. Although it is
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| | would have been readily available to them
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| true that the housing market is in
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| | prior to current day, preventing them
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| trouble just about everywhere in the
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| | from buying a house or qualifying for
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| country, the severity of conditions vary
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| | refinancing.
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| by area.
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| | Although the Fed has made a big cut in
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| Out here in the trenches of Richmond va
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| | interest rates and President Bush has
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| real estate and surrounding counties,
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| | approved the bailout of certain
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| which can be considered typical of many
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| | foreclosure situations, there is still
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| areas, we have seen home prices fall and
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| | one part of the equation that is keeping
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| properties are lingering on the market
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| | the housing market from stabilizing -
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| for months and months. Yes, things are
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| | tighter mortgage criteria by spooked
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| not good for home sellers here, but we
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| | lenders is preventing many ready and
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| are not facing armageddon, either. Houses
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| | willing buyers from qualifying for home
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| are still selling and home buyers are
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| | financing.
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| still buying homes. It is just taking
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| | As often happens when a crisis appears,
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| longer to sell homes and the profits made
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| | those in control tend to overreact and
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| on home sales have come down, but that is
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| | enact regulations that send the pendulum
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| because the prices of houses where highly
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| | swinging to the end of it's opposite arc
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| inflated just two years ago.
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| | before settling somewhere in the middle
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| We're starting on the path of a corrected
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| | as natural forces slow it down. Because
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| market. This is the case in many
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| | several large sub-prime mortgage lenders
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| metropolitan areas such as Richmond. But,
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| | filed for bankruptcy and the number of
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| before we will get back to a normal real
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| | foreclosures is climbing, most, if not
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| estate market, the momentum of the
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| | all, mortgage lenders have tightened up
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| housing pendulum will cause the market to
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| | on their lending practices to the point
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| swing towards the other extreme from what
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| | where many buyers can no longer qualify
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| we saw two years ago and put a deeper
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| | for a mortgage who normally would have.
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| gash in the housing market before it
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| | And I don't mean the high-risk borrowers
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| swings back to equilibrium. The question
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| | that are now defaulting on their
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| remains - how deep will the pendulum's
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| | mortgages.
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| arc slice into the heart of real estate
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| | Before the real estate market gets any
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| and how fast will it swing?
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| | better, the mortgage pendulum needs to
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| Things could get worse for both home
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| | swing back down without creating a deeper
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| sellers and home buyers before they get
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| | gash in the availability of financing for
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| better from what I am seeing out here in
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| | more home buyers. Until banks and other
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| the neighborhoods and tracking the
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| | lenders relax their criteria, the actions
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| market. Sellers are facing even longer
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| | of the Fed and the White House will not
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| selling times because of additional
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| | have a significant enough of an impact to
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| foreclosures hitting the market and job
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| | turn the housing market around. If the
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| relocations. Home buyers are having a
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| | rate of the number of houses offered for
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| harder time qualifying for mortgages
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| | sale continues to grow and the pool of
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| because of the sub-prime loan problems.
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| | able home buyers does not keep pace,
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| It's a mess, no doubt, and we cannot
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| | conditions in the dungeon will only get
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| really be sure how painful it all can get
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| | worse as the pendulum comes ever closer
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| for those having to sell or buy a home.
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| | with each swing.
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| You can probably make as good a prognosis
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| | Ciao for now,Bernie Rosellen, Your Agent
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| of your local conditions as any of the
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| | In The Field Please keep in mind that my
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| real estate pundits, maybe even better,
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| | statements above are based on my personal
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| from just knowing a few stark realities.
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| | experiences and observations around the
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| In order to survive the cuts from the
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| | neighborhoods of central Virginia. Some
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| pendulum, sellers need to be realistic
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| | statements may not reflect fully the
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| with their profit expectations. Your
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| | situations, regulations and laws of other
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| opinion on what your house is worth is
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| | states nor apply in all areas, so please
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| inconsequential. You will have to accept
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| | see what applies in your state (my
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| what buyers offer or not sell. Home
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| | disclaimer to keep me out of Realtor
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| buyers are the market, not sellers. And
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| | Jail).
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