Downturn in New Home Sales for June

Sales of new homes were down 3% in June, with May's sales revised downwards.

June saw a seasonally adjusted annualized rate of 1.13 million new homes sold in June. This was slightly below the market prediction of 1.16 million.

May's numbers were revised down from 1.23 million, reported last month, to 1.17 million. This indicates that the housing market is seeing quite a slowdown after five years of record growth.

While the downturn in housing is now undeniable, there is much uncertainty as to the net degree of drag this will have on the economy, said Michael Gregory, an economist for BMO Nesbitt Burns. This will be one of the key things to watch during the months ahead, as it will partially dictate whether the Fed pauses through autumn.

Sales are down approximately 18% from last summer's peak. Year-to-date sales in the first six months of 2006 were down 11.9% when compared to the first six months of 2005.

Sales are set to decline further so that they better approximate the signal being flashed by the home-builder survey, said Josh Shapiro, chief economist for MFR. He added that the home-builder survey has plummeted 46% in the past year.

The inventory of unsold homes has risen by 0.7%, to a record 566,000. This represents a 6.1 month supply at June's sales pace. Homes not under construction yet represented 19.8% of the inventory -- the highest percentage since 1991.

Builders are reportedly cutting prices and offering incentives in order to keep inventories from building. They are up 24% from January.

Builders have also cut their profit outlooks for the years. Cancellations are reportedly rising and confidence is at a low.

The median sales price is up 2.3% on a year-over-year basis, at $231,300, according to the Commerce Department. This is the weakest gain in three years.

It can take six months for a sales trend to emerge, says the govermnet. New-home sales have averaged 1.13 million for the past six months. The six-month sales average has fallen seven months consecutively.

Martin Lukac represents http://www.RateEmpire.com and http://www.1AmericanFinancial.com, a finance web-company specializing in real estate and mortgage rates. We specialize in daily updates, mortgage news, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies!

Finding the Ideal Property to Rent

The mere thought of having to find a property to rent, whether this is your first go at it or you?ve become an experienced pro, can leave an undesirable taste in your mouth. Why? It almost always seems that every apartment that you?ve looked at (or will be looking at, if you?re new to this) seems to come up a bit short of what you really want (at least, among those in your price range). But not to worry, as with a bit of planning, you?ll be surprised at how smoothly and successfully your efforts can go!

Firstly, you need to decide upon the type of property you want to rent. Perhaps a one-bedroom flat will suit your needs nicely, or maybe a two-bedroom country house is more to your liking. Make a list, prioritize, and be open to suggestions, change and compromise; likewise, be aware of those features you aren?t willing to sacrifice at any cost.

Secondly, check online to browse the available flats and houses. To make your life easier, there are a few quality websites that aggregate listings, as they exist solely for this purpose. Again, make a list and prioritize; be open to suggestions, change and compromise. For example, maybe you really don?t need that second bedroom in order to keep the superb view of the city within your price range. Or maybe gas central heating is more important to you than living close to the train.

Thirdly, when you find a property that you?re interested in, be sure to research the building, the general area, and the landlord. A quick web search for the landlord?s or management company?s name will often tell you whether the tenants are treated well. If the property of interest is one in a larger development, you can always take a leisurely stroll during the day and ask quick, simple questions of any tenants you might see.

Likewise, you can get information on the neighborhood?s crime rate with a web search or by asking a knowledgeable realtor or someone who lives there. Alternatively, you can take a stroll through during the evening and observe the neighborhood for its typical social behaviors.

Above all, be mindful of your priorities, and do your homework! With so many resources available (both offline and online), there?s no excuse to get into a lease that will leave you unsatisfied.

Carolyn Jameson recommends that you visit www.rentright.co.uk for more information on property to rent in the UK.

Discount Real Estate Agents in Los Angeles

Each year, millions of United States residents make the decision to sell their home. If you are interested in becoming one of those individuals, you have a number of ways that you can go about selling your home. A large number of homeowners privately sell their own home, but even more obtain professional assistance.

If you live in or around the Los Angeles area, that assistance can come from a discount real estate agent. Discount real estate agents are agents that offer their services for a low or discounted price. Unfortunately, a large number of individuals believe that there is no such thing as a discount real estate agent. Los Angeles residents that believe this misconception could be paying more than they need to for real estate assistance.

To differentiate traditional real estate agents from discount real estate agents, you will have to determine the cost of using the services provided by each agent. This can easily be done by price comparison. Similar to comparing prices at your local supermarket, you will need to obtain price quotes from a number of Los Angeles real estate agents. After the information has been obtained, you can easily compare the prices to find the lowest fees.

The cost of service is not the only thing that should be examined when finding a discount real estate agent. Los Angeles residents are also urged to examine the services offered by each real estate agent. The service offered by each agent is important in determining what type of service you will receive for your money.

When examining the fees of discount real estate agents, it is likely that you will see their services differ from traditional real estate agents. The services are often not as inclusive as those offered by full price real agents. Just because the same services are not offered, does not mean that you should stop searching for a discount real estate agent. Los Angeles residents have found success using the services of a discount real estate agent. Many are more concerned with the amount of money they will be saving versus the level of service they would receive.

When searching for a discount real estate agent, you may find that there are only a select number of agents that can be considered discounted. This is because most real estate agents charge full price for their services. If you are interested in quickly finding a discount real estate agent, without having to compare a number of fees, you can use the internet to your advantage. You can easily perform a standard internet search to find a discount real estate agent. Los Angeles residents often search for agents this way.

Whichever way you choose to search for discount real estate agents, it is important to remember that they do exist. Do not believe hearsay from other homeowners or denials from full priced competitors. With a little bit of research, you can find a discount real estate agent. Los Angeles residents have been finding them for years and now you can too.

Brad Horn is a writer for 1 percent realtor where you can find a great resource for information regarding a Los Angeles Discount Real Estate Agent.

Government Guaranteed Loans Good Source Of Capital For Entrepreneurs

Guaranteed loans are one of the best sources of funds for people who are in need of additional capital. This is especially true for those small and medium scale entrepreneurs who are still starting out in their business. Starting out in a business is often very difficult, especially if you have limited funds to run your operations. More often than not, small and medium size entrepreneurs who are starting out have some of the most innovative businesses in the country. They may find themselves in a difficult situation when trying to get additional capital for their business. The typical reason why most banks and lending institutions tend to shy away from innovative entrepreneurs is that the business that these entrepreneurs are engaged into is still very novel and untested in the market. To compound the difficulty of the situation, most of these entrepreneurs do not have the necessary properties to serve as collateral for the loan.

More often than not, small and medium size businesses tend to die out shortly after they are started, due to lack of necessary capital to run the operations. However, with government guaranteed loan programs, qualified entrepreneurs may now be able to get loans to finance their business operations, even if they do not have the necessary collateral to back their loans. As long as the entrepreneur qualifies under the guidelines of the government guaranteed loan program, he or she may take out a loan at the affiliated banks and lending institutions without much trouble. Since the government has guaranteed that if he or she fails to pay the loan, the government through its designated agency, will purchase the loan from the bank or the lending institution concerned, there is little concern overall.

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Costa Rica Real Estate Investment ? Unique Financing Technique

Costa Rica real estate investment has become a hot topic in the last couple of years, as investors look to diversify their holdings and place money in appreciating markets outside of the U.S. Costa Rica has blossomed as an investment haven due to its minimal taxes, fee simple ownership, stable democratic government, and consistent high appreciation rates.

One of the challenges facing investors in Costa Rica real estate is financing. In general, U.S. banks will not loan money secured by foreign real estate as a matter of banking policy. Banks in Costa Rica have made an attempt in recent years to offer loans to foreign residents, but have failed miserably because their terms and fees make no sense to U.S. borrowers.

Most investors who want to borrow money and thereby take advantage of leverage with their investment, are left with pulling equity out of property they own back home. It?s not a bad alternative because this source of funds is still relatively cheap and can typically be quickly arranged.

However, a unique and little known financing technique that is available to U.S. investors wanting to purchase Costa Rica real estate, is tapping into the funds accumulating in an IRA account. Industry studies show that 80%-90% of the U.S. investing public do not know that they can invest in real estate with their IRA accounts, in full compliance with IRS regulations. And even fewer realize that they can use these funds for foreign real estate, like in Costa Rica.

Once people realize that this source of funding is available, it opens up a whole new world of possibilities and alternatives. No longer are you limited to stocks, bonds and mutual funds! Instead, you can consider a beach front condo, an ocean view lot in a gated community or a boutique hotel? use your imagination!

The trick in using this technique is to move some or all of your IRA funds to an administrator company that allows self-directed real estate purchases. Certainly, the big Wall Street oriented companies like Fidelity and Schwab do not allow you to directly purchase real estate, local or foreign. You have to use an IRS approved company that specializes in truly self-directed accounts.

For more information on this exciting source of funding for Costa Rica real estate investment, visit our website =>http://www.ira4costarica.com

Kevin C. Myers is the author of the best-selling real estate investment book, Buy It, Fix It, Sell It: Profit! (Dearborn Publishing, Chicago). He is currently a developer and broker of Costa Rica properties on the Pacific coast of Costa Rica, in the Tamarindo ? Flamingo area of Guanacaste. Visit his website at http://www.catalinacove.net for more information on investment opportunities in Costa Rica.

Real Estate And The Media

The role of the media is to report news and opinions, not to make predictions and forecasts.

Predictions and forecasts are better left to the storytellers and the experts respectively. Specifically when it comes to important fields such as Real Estate, it would be ideal if media reporting were as objective and as analytical as possible, for the common good. Unfortunately this is not always the case, at least not when it comes to the general media. We would surely expect to see stories about Real Estate featured in the financial press, such as The Wall Street Journal in the U.S.A., the Financial Post in Canada or The Financial Times in the U.K.

On the other hand, when a feature article on the real estate markets appears in general-circulation publications the likes of Time, Newsweek, MacLeans or U.S. News and World Reports we should take note because the story has begun to circulate well beyond the inner core of the usual financial circles. This may indeed reflect the fact that the general public may be about to imitate the ?experts'. The interesting thing about such stories is that they invariably occur after a substantial price movement has already taken place or price tend, whether upward or downward, has initiated. The article may explain why prices have increased or decreased so much thereby reflecting conventional wisdom, and hence dispensing onto the general public some powerful reasons as to why they should buy or sell, as the case may be.

When market stories reach the front pages of general-purpose newspapers or the covers of magazines and publications, the implications are far greater than if the stories appear solely in the financial press. Independent studies have revealed, for example, that there is a significant correlation between Time cover stories and major trend reversals in both Real Estate and the Stock Market. According to statistical research, the appearance of the story breaks pretty close to the final peak. In the Stock Market, for example, when a bullish cover is featured the market usually rallies at an annualized rate of about seventeen percent for three months or four before the peak. Conversely, when bearish covers are featured, the decline begins within the subsequent couple of months.

Needless to say, the media has an impact on Real Estate as well, but only at major turns of the market. It would be unrealistic to expect a widely published story to signal a short-term turning point. This is so, because to make the front cover of a publication the article has to reflect news to which more or less everyone can relate.

Cover stories sometimes focus on interest rates. In March 1982, for example, an article entitled ?Interest Rate Anguish' appeared on the cover of Time featuring Paul Volcker, the then Chairman of the Federal Reserve Bank. Treasury bills were yielding 12.5 percent at the time, but a year later they had fallen to 8.5 percent. And so had mortgage rates. Likewise, cover stories that do not appear to have any direct bearing on Real Estate, but that refer to the general state of the economy can also help discern the markets' mood. For instance, features about the President in the United States or the Prime Minister in Canada can often reveal how we think about ourselves. Covers reflecting upbeat and confident leaders typically reflect a similar mood in the country. The opposite is also true.

But here is where the analogy between Real Estate and the Stock Market diverge. If the nation, whether the United States or Canada, either directly or indirectly through its elected officials is reflected in a cover story as ebullient and confident, then expect the Stock Market to decline and Real Estate to pick up. On the other hand, if the story reflects a lack of national confidence and will tackle its seemingly insoluble problems, then expect Real Estate to decline and the Stock Market to pick up.

It must be said, however, that one should not rely on cover stories with mathematical precision. It is always important to examine the facts and to come up with various alternative forecasts, as cover stories cannot invariably be relied upon as exact timing devices, especially in Real Estate. They do, however, offer general indicators that give a good historical perspective of when an extreme has been reached, whether high or low. When all pieces are more or less consistent, it is possible to come up with credible scenarios and forecasts outlining with reasonable approximation the chances that Real Estate is about to reverse its prevailing trend.

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 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.

REAL ESTATE 101 ? What is Real Estate?

Many people believe that real estate is nothing more than houses, apartment buildings, large office structures. And while that may be true, real estate, by definition is much more.

Once upon a time the powers that be decided to split ?property? into two separate groups. Real and Personal. What?s the difference between these two? In a word, movability. If it moves, it?s considered to be personal with a few exceptions.

Real property consists of three things. Land, things attached or affixed to that land and lastly, appurtenances.

Land is pretty easy. However it?s not just the land you own. You also own sub-terrain rights, depending on your location. This is also true with the airspace above your property. You own up to a certain height, again depending on your location. At some point the government takes over and says, okay that?s it. The rest is ours. We have airways to think of and we?re not going to have every flight file a million easements every time they took off.

Two, items attached to the land. We take this for granted. Your home is considered an attachment. If you look on your deed, I doubt you?ll find any mention of the structure on your land. The house transfers with the sale because of its? attachment to the land.

If there is a question regarding whether an item is Personal or Real, many courts use the MARIA system to decide.

M ? Method of attachment ? How was it attached? Foundation? Nuts and bolts?

A ? Adaptability of the attachment ? How easily does the attachment go with the overall structure? Think solar panels.

R ? Relationship of the parties ? Is this a sale? Is this between family members?

I ? Intent of the parties ? What was the original intent of the party installing the attachment?

A ? Agreement between the parties ? What did they originally agree on?

This issue usually comes up when a property is sold and the seller wants to take an item such as an outdoor barbeque, and the buyer insists that it comes with the sale.

Lastly, appurtenances are considered real property. The official definition is this; A right or privilege that is attached to another property and is conveyed with it.

Suppose Property A had a right (easement) to cross over a part of Property Bs? property to get to the main road. If the owner of A sells his property, the right to cross over Bs? goes with it. This is a type of appurtenance, called an easement appurtenance.

As you can see, ?real estate? is much more than the physical structure that sits on a piece of land. Before buying or selling, make sure you know what is staying and what is going.

Tom Bruner is President of Bruner & Associates, Inc., a full service California commercial property brokerage since 1989. Tom spent four years teaching students Real Estate Principals for Kaplan Schools.

?By spending extra time with each of my clients, I?m able to help that investor buy or sell their income producing property by maximizing that information. Visit me at http://www.brunerandassociates.com?