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RISMEDIA, June 1, 2010—(MCT)—Although the situation is open to interpretation as well as change, there are growing concerns that the effects of this economic downturn could have a long-lasting effect on the housing market.

A study by the Mortgage Bankers Association, conducted by Kentucky economics professor Joe Peek, concludes that “the current financial crisis and recession exceeded the devastation created by other post-World War II recessions.”

Saving rates have risen substantially. Many Americans will continue to cut spending sharply out of necessity, “others out of fear of what the future holds,” Peek said.

When it comes to housing, he said, it was unlikely that the dramatic rise in loan delinquencies, foreclosures and bankruptcies would show a “meaningful” decrease in the foreseeable future.

“High unemployment and low house prices are widely projected to remain for an extended period, as well as the rise in problem loans at banks that will restrain their willingness and ability to provide credit,” Peek said.

Two groups expected to feel the pinch the most are young first-time buyers and the so-called active-adult purchasers who downsize as their children grow and move out.

“The impact of a higher unemployment rate for Americans ages 16 to 24 could have a lasting effect on lifetime earnings and attitudes toward risk and social policies,” Peek said.

In addition, those nearing retirement are delaying it and re-entering the labor force “in an effort to rebuild some of the retirement wealth that was wiped out by the recession,” he said.

The housing industry had been banking on both of these groups to sustain growth during the coming decades—especially the empty-nester baby boomers.

“The tougher economic circumstances for twenty-somethings and fifty-somethings will weigh on housing demand over the coming decade,” said Mark Zandi, Moody’s Economy.com chief economist in West Chester, Pa. “The first-time buyer and second-home markets would be most directly impacted.”

Economist Patrick Newport of IHS Global Insight of Lexington, Mass., said that Peek’s assessments “are a lot more dismal than ours, and ours is hardly rosy.”

He said today’s housing market “is imposing a bit more discipline by requiring bigger down payments and better credit scores for buying homes.”

The financial-reform package passed recently by the Senate includes provisions that, in addition to restricting prepayment penalties and controlling mortgage-broker compensation, would force lenders to consider applicants’ income, assets, and credit history before making a loan. If this change is permanent, perhaps homeownership rates will come down to pre-1995 levels—the year they started to climb. “I do not think this would be such a bad thing,” he said.

The homeownership rate slipped to 67.2% in the first quarter of 2010—its lowest reading since the first quarter of 2000. Homeownership rates averaged 64% from 1985 to 1994, but accelerated in 1995 because of government policies that encouraged homeownership, especially for previously underserved low- and moderate-income buyers. Rates reached record highs of 69% “because of easy lending during the housing boom,” Newport said.

Although it is probably likely that the lack of good-paying jobs will delay the entry of the current 16- to 24-year-olds into the home-buying market, “it’s less clear what effect the reentry into the workforce of baby boomers is going to have,” said Rick Sharga, chief economist of RealtyTrac.

“In some cases, this may keep inventory levels down, as the boomers stay in their current homes while going back to work,” Sharga said. “On the other hand, they may opt to ‘trade down’ in an effort to maximize their retirement dollars while they’re replenishing their IRAs and 401(k) accounts,” he said. “At best, this all suggests a pretty slow, marginal recovery over the next few years,” Sharga said.

(c) 2010, The Philadelphia Inquirer.

Distributed by McClatchy-Tribune Information Services.

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RISMEDIA, June 1, 2010—Someone once said that measuring the results of advertising was like trying to nail jelly to the wall. In other words, very difficult and frustrating, if not impossible. But that was before the Internet.

Today’s technology allows you to see exactly how many people your message is reaching, along with how well they’re paying attention. For high scores in both of those categories, online video has emerged as the hands down winner.

For those who may be skeptical, it’s all in the numbers. Earlier this spring, for the first time ever, viewing video comprised over half of all Internet activity. Over half—and the numbers are still growing. And when it comes to online searches, the world’s number two search destination, YouTube, is comprised totally of video. In fact, the Wall Street Journal said the number of videos hosted on YouTube has gone up from about 6 million in 2006, to over 80 million in 2009. This year, that figure is expected to easily top 100 million.

What does it all mean? The numbers point to the overwhelming popularity and growth of online video. According to comScore, 178 million online viewers watched over 33 billion videos in December of last year—a number two billion higher than the month before! In addition, information and entertainment continue to be among the leading categories of video content.

For the real estate industry, the implications are clear. The question shouldn’t be if you’re going to adopt video as part of your online strategy, but rather how and when. Answering both is relatively easy. The ‘how’ can be summed up in two words—Social Media. It’s the most popular online strategy for not only reaching people, but driving them to your website. And nothing empowers Social Media better than video. The ‘when’ is easy to answer as well. It all depends on how long you’re willing to fall behind your competitors who are already implementing their own online video strategy.

If you haven’t started yet, don’t despair. VScreen can help you quickly develop an effective and economical array of online video tools and Social Media applications. The hand writing is on the wall—video is here to stay—and growing every day. Why not contact VScreen today for a free, no obligation consultation? We’d love to hear from you. Thanks for watching!

Stephen Schweickart is the co-founder of VScreen. For more information on this topic, visit VScreen’s blogsite at http://www.vscreen.com/blog/.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

To see last week’s video tip, click here.

RISMEDIA, June 1, 2010—Newly built homes, often in recently-developed communities, are regaining popularity and are more affordable than in years past. New homebuilders are using desirable, open floor plans and are helping buyers get into new homes despite the nationwide credit crunch.

As with any major transaction, it’s critical that the buyer enter the home purchase fully informed and educated. Follow these important tips in a new home transaction to ensure that the outcome is a success.

1. Choose a Realtor Who Has New Home Sales Experience
Hire a buyer’s agent to represent you. Most of the time, your agent will be paid by the seller, but sometimes the responsibility for the agent’s fee is open for discussion. Even if you have to directly pay your agent, you can probably add that fee to the sales price, which would be worthwhile since a strong Realtor negotiating on your behalf can save you thousands more than the commission.

The builder’s sales agents are paid to represent the builder, regardless of what they may tell you. Many will use high pressure tactics to persuade you to sign the contract. Due to the high volume nature of brand new home sales, lots of builder’s agents are paid less than a traditional commission; some earn a salary plus incentives, so turnover is important to their livelihood.

Your own agent will represent you, act as your fiduciary and disclose the positives as well as the negatives about the transaction. Builder’s agents don’t discuss drawbacks.

If your contract contains a contingency to sell your existing home before buying, again, hire your own seller’s agent to list your home. Be aware that buying before selling is not always in your best interest as hard bargaining goes out the window once you’ve emotionally already left your home.

2. Carefully Evaluate the Seller’s Lender before Committing
Builders often prefer their own lender because the builder will be kept fully informed of your personal progress; it’s one-stop shopping for a builder. However, a builder’s lender might not offer you the best deal. This is particularly true if the builder actually owns the lending company.

Builders will offer huge incentives to get you into your new home; sometimes up to 15% of the value of the home. However, they will often put one big stipulation on those incentives – that you use their lender. There are many problems that may crop up when you pigeon-hole yourself to one lender – higher rates and higher closing costs are the two biggest.

Ask to see a copy of your credit report and FICO cores. You can also order your own free credit report before shopping for a new home.

Insist that your lender guarantee its Good Faith Estimate. If the lender balks or makes excuses, go elsewhere. Reputable lenders will honor that request, even though it’s not required by law.

3. Check out the Builder’s Reputation
If a buyer has a bad experience with a builder, word spreads rapidly throughout a community. However, accurately and fairly assessing a builder’s history is the appropriate path- check public records for lawsuits or complaints and evaluate their resolutions.

Talk to the neighbors and scrutinize the construction quality of surrounding homes. Is the builder consistently building same-sized or larger than existing properties, or are homes shrinking in size, which could reduce neighborhood value?

Learn if the builder limits investor purchases – this ensures that the neighborhood doesn’t turn into a “rental” neighborhood, which may appear less well-maintained and reduce property value.

4. Hire a Home Inspector
Many people who buy new construction homes don’t bother to get a home inspection. Most new homes come with a one year “bumper to bumper” warranty that includes everything, and many home buyers feel that they can find out if there are any construction flaws during those 12 months. The problem is that many problems won’t surface until well after the 12-month warranty has expired.

If the inspector calls for further inspection by another professional contractor, find out if the inspector is telling you there could be a serious issue or if the inspector isn’t licensed to address that issue.

An inspection provides education about the property, and offers the validation of a trained, independent third party assessment of the structure and systems.

5. Obtain Legal Advice before Buying a Brand New Home
Before you sign a purchase contract, talk to a real estate lawyer. Standard purchase agreements are designed to keep everybody out of court, but they don’t necessarily contain language that protects the buyer.

Ask questions about removal of contingencies and your cancellation rights. Make sure you understand your liability and commitments.

Find out if the materials used by the builder contain chemicals that are hazardous to your health. If your contract contains a warning about health issues, it’s probably because it’s a valid concern and other buyers have gone to court over it.

Dan Steward is president, Pillar To Post.

For more information, visit www.pillartopost.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

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RISMEDIA, June 1, 2010—Have you registered yet for RISMedia’s 2010 Leadership Conference—The Real Estate Social Media Summit? There’s only eight days left – don’t miss out!

Scheduled for June 9-10, this year’s conference is being held just outside of New York City at the beautiful and conveniently located Hilton Rye Town in Westchester County, New York.

What’s more, this year’s conference offers a new payment option — the one-day pass, currently priced at just $199.

Whether it’s learning how to create your own social media profile or how to write a blog, or how to integrate your current print marketing initiatives, RISMedia’s Leadership Conference has you covered.

This year’s conference will take the form of a summit on real estate social media and mobile strategies for both brokers and sales associates to help these professionals best meet the demands of today’s home buyers and sellers. There will also be a track dedicated specifically for brokers, and additional business development and marketing sessions.

Some of this year’s educational sessions include:

• Where to Start – Getting the Most Out of Social Media in the Least Amount of Time
• What Are You Doing to Increase Market Share?
• Using Your Blog As a Call to Action
• What Does the Brokerage of the Future Look Like?
• The Art of Converting Brokerage-Generated Leads
• The Effect of Distressed Properties on Your Business
• Building Your Social Media Profile
• What Message Are You Sending? Advertising the Brokerage in 2010 and Beyond
• Creating Differentiation through Social Media
• Improving Your Negotiating Skills
• Enhancing Agents’ Value Proposition to Consumers
• Team Building in 2010 – What’s Changed?
• Recruiting Is One thing…Then There’s Retention
• How to Maximize Hyperlocal Marketing
• What’s In Your Listing Presentation?
• Plus a Keynote Address by Allan Dalton, author of the book, Leveraging Your Social Media Links

Want More Information? Text LEADERS to 88500 from your mobile phone or visit http://rismedia.com/events/leadership-conference.

Need to Register? http://events.rismedia.com!

Interested in Sponsoring and/or Exhibiting? Contact your Account Representative or e-mail advertising@rismedia.com.

Still Have Questions? Contact Stephanie Andre at stephanie@rismedia.com or 203-855-1234 x141.

RISMedia welcomes your comments and questions. Email realestatemagazinefeedback@rismedia.com.

RISMEDIA, June 1, 2010—Depending on the source you choose to believe, there are estimated to be over 15 million homeowners in this country who owe more than their home is currently worth. Rather than debate what the exact number of “underwater” properties may be, the reality is there were a lot of homebuyers back in 2004 to 2006 who bet that home prices would continue to climb and a host of misguided lenders and investors that were ready and willing to take that wager. The daunting problem facing the housing industry and the general economy today is how to unwind the aftermath of the boom years in a fair and equitable manner.

When you consider the dilemma, an underwater homeowner has five choices: 1) bite the bullet and pay the mortgage (not likely if the loan to value ratio is greater than 125%), 2) default on the mortgage and hope to qualify for a loan modification, 3) mail the keys back to the lender in a “deed in lieu of foreclosure” arrangement, 4) sell the property in a short sale transaction, 5) or finally, default on the loan and wait for the sheriff to arrive with an eviction notice. With the exception of the first choice, in all other cases, families are displaced, credit scores are destroyed, lenders suffer significant losses, average home prices continue to decline and neighborhoods are blighted. The magnitude of the problem is daunting, but there is a solution.

The reality is both homeowners and lenders made bad financial decisions. Rather than be at odds now when the investment has soured they should partner with each other in a long-term equity sharing arrangement.

Here is an example: Let’s say the homeowner purchased a home in 2004 for $300,000 with no money down and the property is now worth $150,000. That represents a 50% reduction in value. In an equity-share arrangement the lender would rewrite a new loan for $150,000 (assuming the homeowner qualifies) and the lender would take a 50% ownership interest in the property. The homeowner would agree to hold the property for at least five years and after that time would agree to split 50% of the net proceeds of the sale with the lender. Should the homeowner wish at any time to buy out the lender’s interest, a pre-determined lump sum cash payment would be negotiated when the new loan was written.

In this scenario a number of positive outcomes are achieved. First and foremost, homeowners would stay in their homes. Second, their credit would be preserved, assuming they stay current on the new loan. Third, a distressed sale is avoided as is its chilling effect on property values in the neighborhood. Finally, the lender keeps a performing asset on its books, turning a potentially much larger loss via foreclosure or short sale into future upside potential when the house eventually sells.

We got into this mess one house at a time. The way out is one house at a time. Equity sharing offers a private-sector solution that won’t cost U.S. taxpayers a dime.

Alex Perriello is President & CEO of the Realogy Franchise Group, whose world-renowned brands are leaders in the real estate industry.

RISMedia welcomes your comments and questions. Email realestatemagazinefeedback@rismedia.com.

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RISMEDIA, June 1, 2010—Property Panorama, a real estate industry leader in Virtual Tours, with over 50 MLS Partners and over 250,000 agents, announces the election of Mike Barnett to the position of President.

“This is a very exciting opportunity for me and I am humbled,” stated Mike Barnett. “Justin Furmage is a true genius and his patent pending technologies are untouchable. Property Panorama has raised the bar through their Virtual Tour offerings by utilizing the only server-side solution in the industry today.”

“In the time that Mike has been working with us in the capacity of CIO, his experience, wisdom, talents and guidance have propelled us forward by leaps and bounds,” stated Justin Furmage, CEO and co-creator of Property Panorama. “Mike assisted us in examining and refining our Vision and Mission. We look forward to Mike presenting these to the industry and beyond as President of our company.”

Outgoing President Scott Bliss who will maintain a seat on the board and an active role in Property Panorama states, “It continues to be exciting to be a part of the growth of Property Panorama. I take great pride in what we do and having helped lead us to the level that we have attained. At this point, Mike brings a great combination of industry relationships and management experience to lead Property Panorama. When we brought Mike in as CIO, it became immediately apparent that he could engage himself in every aspect of our business and proved to be an extraordinary asset. There is no doubt Mike is the ideal person to deliver our message as President, and I look forward to continuing to contribute with Mike at the helm.”

Ken Baris, President of Jordan Baris, Inc. Realtors in Northern New Jersey, (one of the top brokerages in North America) and Property Panorama Board member states, “I have known Mike for almost 20 years. Mike has been a magnet for success in combining technology with brokerage while maintaining his uncommon common sense and vast relationships throughout the industry. Mike is approaching his position like a chess player and has plotted our strategy many moves in advance.”

Mike also states, “we have redefined and developed a totally new direction for our marketing and products and our team will be rolling them out over the next 60-90 days. I am sure the program will be well received by our industry, especially our newest product offering, ‘free SlideShow Virtual Tours’ for all MLSs and Associations that want to do business with us.

“Mike was instrumental in the creation of ePRO, the online technology certification program of the National Association of REALTORS®, and he has been an active contributor to the ePRO community since InternetCrusade was awarded the contract in 2001. Mike was also one of the founders of RealTown. Prior to ePRO, Mike was a key industry spokesperson for InternetCrusade, spreading the use and benefits of technology to, at the time, a frequently skeptical REALTOR® audience,” said Saul Klein, CEO of Point2 Technologies. “Give him a job and he will get it done. It is that “can do” attitude that will make Mike a valuable asset to Property Panorama. Congratulations to Property Panorama and to Mike.”

Mike can be reached at Mike@PropertyPanorama.com.

For more information, visit www.PropertyPanorama.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

RISMEDIA, June 1, 2010—Point2 Technologies announced that it has completed the development and rollout of a national property listing syndication program in partnership with the San Diego Association of Realtors® (“SDAR”). The initiative will enable SDAR (www.sdar.com) members to selectively publish listings, view traffic reports and capture leads across Point2’s network of 40 high-traffic partner websites and search engines in the United States, efficiently and at no added cost to them.

SDAR, with nearly 11,000 members, is the largest of four members of the San Diego County’s Regional Multiple Listing Service (Sandicor), which represents the majority of Sandicor’s over 10,000 listings.

SDAR becomes the second member within Sandicor (www.Sandicor.com) to implement the Point2 program in two months.

“San Diego County is a highly desirable destination and a great place to raise a family, own a second home, retire or spend vacation time,” said Michael Mercurio, Chief Executive Officer, San Diego Association of Realtors®. “Our partnership with Point2 gives consumers all over the country the chance to research the largest pool of properties listed for sale in the area. In effect, we’re helping our members to market their listings to buyers well beyond what any local or single website can offer by reaching out to consumers where they may choose to browse.”

“We’re very pleased to add the San Diego Association of Realtors® as a partner in this major project,” said Saul Klein, Chief Executive Officer, Point2 Technologies, and a past president of the San Diego Association of Realtors®. “The increasing popularity and rapid adoption of listing syndication by MLSs (Multiple Listing Services) and Associations across North America reflect new thinking by the industry and progress toward MLS 5.0 concepts that aim to connect the MLS, brokers and agents, online marketplaces and consumers. Point2 is proud to play a key role in this development. It is also personally rewarding to be able to bring new technologies and benefits home to the Realtors® of San Diego County in general and to SDAR specifically.”

The Point2 listing syndication service is offered completely free of charge to MLSs and real estate Associations and their members. Access to online traffic reports is also included.

Optional subscription-based services are available to brokers and agents through their syndication dashboard for seamless access to more detailed traffic reports, the Point2 Agent website platform, automated lead management and conversion systems, and several other critical online marketing and productivity tools.

For more information, visit www.Point2.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

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