According to this research from Harvard and MIT, reprinted below from Housing Wire, A foreclosure reduces the value of a house by 27%, on average, and accounts for a much steeper price drop than other forced sales (like death). Despite every effort by the US Government to buoy the housing market, they have not been able to stem the rash of foreclosure. This is not necessarily being brought upon us by the worse employment market in history. It is compounded by “Strategic defaults” that continue at an alarming rate. These are defaults by homeowners who can afford to pay their mortgage, but choose not to because their home is worth less than their mortgage. They know thier bank, already overridden with foreclosures, won’t get around to evicting them for as long as two years, allowing them to live in the house for free. This also allows the homeowner to stash away thousands of dollars in extra cash and get away with it. As of June, the Federal Government has dumped $3.7 Trillion dollars toward this problem. The impact only served to stop the fall – however the underlying fundamentals do not seem to be getting any better. Good information to keep in mind as Mid-summer reminds us that Fall is coming near. I think that we are in for a long cold winter in real estate. Please enjoy this Housing Wire article – very well done. A foreclosure reduces the value of a house by 27%, on average, and accounts for a much steeper price drop than other forced sales, according to a study by a Massachusetts Institute of Technology (MIT) economist and two Harvard University researchers. In comparison, when a house is sold after the death of an owner, the price drops 5% to 7% on average. When an owner declares bankruptcy, the value sinks 3%, according to the report. The research, “Forced Sales and House Prices,” has been accepted for publication in the American Economic Review. In the study, MIT economist Parag Pathak and Harvard researchers John Y. Campbell and Stefano Giglio examined 1.8m home sales in Massachusetts from 1987 through March 2009. The researchers believe their discovery of the gaps between the price reductions is key to isolating the effects of foreclosures. Because the declines in value are so disparate, yet occur among comparable homes in the same times and places, the reductions in value are not all attributable to the same […]
WAV Group has been working with many MLSs to understand the complex balance between protecting MLS content and supporting the needs of subscribers who are looking to publish listing content on social media sites like facebook. A technology vendor is seeking an MLS partner help pilot a program. The goals of the pilot are to insure that the product does the following. 1. Supports agents and brokers who want to publish their listings to facebook 2. Protects MLS content digital rights and adheres to MLS rules and regulations 3. Provides ease of use for agents and brokers If you want to learn more – please contact victor lund – victor at…. wavgroup.com
We write so much in our industry about stuff. Stuff like technology, politics, data and other topics dominate our blogs and daily reading but today I want to share a few thoughts about a person that many of you may not know, Chris Warner, who was very important to me, and others, in our early days in our industry. Chris recently passed away. Chris and I, like many of our cohorts in our industry, worked together at PRC Realty Systems in the 80’s when the whole MLS industry was in the process of becoming computerized. I actually learned of Chris’s passing through a PRC group we all belong to on LinkedIn from his wife Pat, which shows how strong that early connection still is. It was very sad to hear about Chris’s passing and our deepest sympathies go out to Pat and Chris’s whole family. Today, though, I want to share something I learned from Chris that has always stayed with me that I have shared with others through the years. It was a simple lesson really but like many simple things that are true it has stood the test of time for me. I pass it along as a gift from Chris. Before I tell you the advice that Chris gave me you should know that Chris was one of the early, great MLS system sales managers in our industry. He was selling MLS systems in a day when not all MLSs had computerized MLS yet. Chris was the consummate professional. From his dark suits, starched shirts and cufflinks to his preparation and diligence during the sales process, when I put myself next to Chris I felt like a total amateur. But, like many really good mentors Chris was more than happy to help anyone he came in contact with. I got to work with Chris when I was promoted to Regional Sales Manager at PRC Realty Systems. Chris was the top salesman in the company at that time. David Charron (CEO MRIS) our fearless leader in MLS system sales back then, put me under Chris’s wing for guidance at one point, so I got to go along with Chris on some sales presentations to get my feet wet. I remember being totally in awe of his command of the material, his ability to manage the presentation and ultimately close the deal. I had no idea at the time […]
All very cool and exciting stuff. We are very fortunate to be positioned on the intersection where the primary fiber optic passes between the United States and Asia. From San Luis Obispo, the fiber gets split and moved north to San Jose and south to Los Angeles. RE Technology is pleased to announce our hosting facility has levereged this location in to improve our services. Over the last 18 months, our hosting partner planned Northern and Southern backbone upgrades, as well as peering and transit hand-off upgrades at RE Technology hosting locations in Los Angeles and San Jose. Up until last year, hosting backbone circuits were OC circuits or “SONET” based circuits. As our needs grew, we can take advantage of a larger network, capable of transmitting 100 times more volume and speed. All services are now supported by native Ethernet circuit over Fiber, creating the ‘cleanest’ possible backbone circuit. The Northern 10Gig Wavelength was turned up on July 9, 2009. During it’s first year, the circuit has created ZERO errors or packet drops. Improvements were delivered in transit handoffs to all GigE circuits, as well as upgrades to the peering to GigE handoffs. This was done on both ends, Los Angeles and San Jose. THIS WEEKEND, is the launch of the Southern backbone as a 10Gig Wavelength, replacing the OC circuit that’s been in place. FUN!