{"id":4431,"date":"2008-09-15T07:15:30","date_gmt":"2008-09-15T14:15:30","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=4431"},"modified":"2009-03-08T11:30:34","modified_gmt":"2009-03-08T18:30:34","slug":"so-what-does-this-mean-to-the-real-estate-markets-and-real-estate-professionals","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4431\/so-what-does-this-mean-to-the-real-estate-markets-and-real-estate-professionals\/","title":{"rendered":"So what does this mean to the real estate markets and real estate professionals?"},"content":{"rendered":"

Since I’ve already had almost a dozen e-mails, phone calls and tweets<\/a> asking me, “So how does the financial meltdown on Wall Street impact me as a Realtor?”\u00a0\u00a0 I thought I’d take a few minutes this morning and throw out some observations and thoughts of what it might look like.<\/p>\n

Before I do, let me remind you that we are in what could truly be called a historical (in a negative sense) event and therefore any prognostications are exactly that and it’s going to be interesting to see.\u00a0\u00a0 But here’s what I see as some potential ramifications for the real estate markets:<\/p>\n

1. Mortgage rates – due to the increased “danger” and perceived lack of safety in the stock markets, I think we’re going to see a major “flight to quality” as people pull money out of stock and into bonds.\u00a0\u00a0 And, because Fannie and Freddie are now owned by the government, we could see a pretty nice drop in mortgage rates because of it.\u00a0 I also believe that rates will drop because (see #3) of the anti-inflationary pressures.<\/p>\n

2. Non-agency loans – by Agency, I mean anything that is bought by Fannie, Freddie, FHA and VA.\u00a0 I believe that the death of Lehman and the forced sale of Merrill (as in, sell or die) are going to be, in many ways, the death knell (for the time being) for non-agency loans.\u00a0\u00a0 If a bank can’t sell it on the secondary market (and the only secondary market that’s left is Fannie, Freddie, FHA and VA), then they won’t do it or it’s going to be very expensive.\u00a0\u00a0 Now, there will be small exceptions to that where you have small community banks who are willing to do some creative portfolio stuff, but that’s going to be the exception rather than the rule.<\/p>\n

3. Cash is king in the financial world – we’re going to see a tightening of credit in all forms of lending where it is being done with the bank’s own money.\u00a0\u00a0 Commercial loans, equity lines, car loans etc. are going to be harder to get and more expensive.\u00a0\u00a0 This will have a negative Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Since I’ve already had almost a dozen e-mails, phone calls and tweets asking me, “So how does the financial meltdown on Wall Street impact me as a Realtor?”\u00a0\u00a0 I thought I’d take a few minutes this morning and throw out some observations and thoughts of what it might look like. Before I do, let me […]<\/p>\n","protected":false},"author":44,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[26],"tags":[],"class_list":{"0":"post-4431","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-lending","8":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":3360,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3360\/update-on-the-fannie-and-freddie-issue\/","url_meta":{"origin":4431,"position":0},"title":"Update on the Fannie and Freddie Issue","author":"Tom Vanderwell","date":"July 14, 2008","format":false,"excerpt":"Okay, here\u2019s an overview of my take on the Fannie Freddie issue: Do you think the Stock Markets like the Fannie Freddie Bailout? Uh, that would be a classic example of an initial elation followed by the let down that comes from looking at the details.\u00a0\u00a0 I\u2019m not going to\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"Do you think the Stock Markets like the Fannie Freddie Bailout?","src":"https:\/\/straighttalkaboutmortgages.files.wordpress.com\/2008\/07\/dow-in-time2.gif?w=350&h=200&crop=1","width":350,"height":200},"classes":[]},{"id":16137,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/16137\/where-is-the-real-estate-market-going-today\/","url_meta":{"origin":4431,"position":1},"title":"Where is the Real Estate Market Going Today???","author":"Cooksquared","date":"July 27, 2012","format":false,"excerpt":"If you are like me, you have a random sampling of news websites to keep you abreast of the happenings of the world every hour or so.\u00a0 It\u2019s the age we live in; every data point, story, press release, blog post triggers a monsoon of pundits and analytical analysis that\u2026","rel":"","context":"In "Innovation"","block_context":{"text":"Innovation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/innovation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":83,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/83\/the-top-ten-overpriced-real-estate-markets\/","url_meta":{"origin":4431,"position":2},"title":"The top ten overpriced real estate markets","author":"Greg Swann","date":"July 12, 2006","format":false,"excerpt":"From sellsius\u00b0 real estate blog, citing Forbes magazine, the top ten overpriced real estate markets:1. Essex County, MA 2. San Francisco, CA 3. San Jose, CA 4. Honolulu, HA 5. Cambridge, MA 6. New York City, NY 7. Tucson, AZ 8. Oakland, CA 9. Boston, MA 10. Los Angeles, CAI'm\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":5010,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/5010\/what-happens-to-the-early-worm\/","url_meta":{"origin":4431,"position":3},"title":"What Happens to the Early Worm?","author":"Cooksquared","date":"October 16, 2008","format":false,"excerpt":"Quite a while back I asked a question, if the early bird gets the worm, what is the early worms reward for being early? In this tumultuous market we have already seem many early worms. Several months ago a lot of people began jumping back into real estate only to\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1746,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1746\/expect-market-slowdown%e2%80%99s-a-quick-thought-piece-for-the-more-financially-minded\/","url_meta":{"origin":4431,"position":4},"title":"Expect a Market Slowdown: A quick thought piece for the more financially minded…","author":"Cooksquared","date":"August 4, 2007","format":false,"excerpt":"Buyers and sellers should be aware of a general economic slow down in all markets. Everyone will feel the effect of the leverage finance and subprime markets. Since I have been writing about the subprime markets for quite some time, I will focus briefly on the effects of the decline\u2026","rel":"","context":"In "General"","block_context":{"text":"General","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/general\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4924,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4924\/citing-market-downturn-redfincom-cuts-headcount-by-twenty-heads\/","url_meta":{"origin":4431,"position":5},"title":"Citing market downturn, Redfin.com cuts headcount by twenty heads","author":"Greg Swann","date":"October 13, 2008","format":false,"excerpt":"Via intrepid startup blogger John Cook from his new weblog Where are John and Todd?:Redfin today said it is cutting 20 percent of its staff as the Seattle online real estate broker prepares for what Chief Executive Glenn Kelman described as a \u201cbig dip.\u201d About 20 employees were let go,\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/4431","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=4431"}],"version-history":[{"count":7,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/4431\/revisions"}],"predecessor-version":[{"id":7387,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/4431\/revisions\/7387"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=4431"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=4431"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=4431"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}