Home prices remain depressed in some areas of the country, but for other areas prices continue to rise. This good news/bad news scenario can be different for buyers or sellers from market to market.

Many local housing markets are offering near equal measures of good news and bad news when it comes to buying and selling homes.

In some markets the good news is that housing prices are continuing to drop, making it easier for prospective homeowners to buy a home. Throughout much of California this holds true, especially in locales where foreclosures are still high, dragging down home values. Of course, this latter bit of information is bad news for sellers, especially those who are finding themselves upside down in their mortgages (owing more on their homes than what they are worth).

In other areas, the good news that housing prices are continuing to rise, allowing home sellers to see some gains on the sale of their homes. The bad news for buyers is that they’ll have to pay more for their homes, but their is a silver lining for even buyers — these markets which include Raleigh, NC; Grand Junction, CO; and Oklahoma City according to Zillow.com which tracks housing values with its Zindex survey.

Some prospective buyers are trying to time the market to jump in when prices bottom out. This is a risky game to play as it is virtually impossible to tell when a market has quit dropping. Statistics supporting housing trends are usually delayed by several months. This means that you could end up waiting too long to jump in and end up paying thousands of dollars more for your home.

Many home markets peaked some time in 2006; although further declines are still possible, some of these same markets are edging closer to beginning their recovery.

Zillow currently tracks the housing activity in 160 housing markets and has discovered that while 130 of the markets have seen their home values drop within the past year, 144 markets have returned positive annualized appreciation over the past five years. This means that if you bought your home in 2003 you shoudl be in good shape, but for some people who bought their homes in late 2005 or 2006 they could be in negative equity territory.

So, what is the best advice for buyers and sellers right now? Find out how your local housing market is performing and price your homes accordingly. A site like Zillow gives you a decent measuring tool on home values and real estate sales comparables (comps) from your realtor can give you a clear picture on the market today.

(Source: Zillow.com)

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Adv. — Are you in the market for a new home? SayLending.com is an excellent resource to help you finance your home and for finding useful budgeting tips and money management information.

Tags: Home Buying, Home Selling, home values, housing market, real estate, Zillow.com

Earlier this month SayEducate explored the growing trend where buyers are choosing foreclosed homes as one way to enter the housing market or to get a second home for investment purposes. In, Foreclosures: Wise Investment or Money Pit? we examined the pitfalls and positives related to this type of financial decision making, taking care to emphasize the risks involved.

Since we posted the article, we’ve uncovered a handful of auctions being held around the country to dispose of foreclosed property. This weekend, one auction house hopes to see 200 homes sell and is hosting back to back auctions in Dallas and Houston to give buyers an opportunity to buy discounted houses.

It isn’t our policy to endorse or give out details about specific home auctions, but our gut reaction to them is for you to perform due diligence before placing a bid. Specifically, by visiting the property in person and doing a thorough inspection, these steps will reveal whether the house is worth buying or not.

Of the few home auction websites we’ve visited, there seems to be plenty of information available to you including:

The licensure information — Real estate agents and brokers must be licensed and auctioneers must have a state license too. People associated with the selling of a home via auction should be willing to disclose their credentials. If not, then don’t place a bid.

Open houses — Every property being sold should be visited, therefore find out when open houses are held. Some homes are available by appointment only; if you cannot gain access, then don’t place a bid.

Financing — Some companies have a financing department available or affiliated lenders who will pre-approve your mortgage. Unless you’re paying cash for the property, you’ll be expected to put about 5% down and be able to come up with the rest of the money by closing, which is usually 30-45 days out. Please note that many auction companies will tack on a fee, usually 5%, on top of your final price as a buyer’s premium.

Of course, you’ll want to understand what other fees are your responsibility (e.g., title costs, attorney charges, liens, taxes, etc.)  before proceeding and what other paperwork you must handle. If you find a home you like and you have a bid you’re ready to offer, then attend the auction for your chance to buy a foreclosed home.

The present housing market has driven down prices while driving up foreclosures, making 2008 an excellent time to buy. Perform due diligence and you could come away with a bargain.

Tags: auction, foreclosure, home auction, home buy, home sell, home title, liens, mortgage, Property Taxes, taxes

Fannie Mae, which is the informal name for the Federal National Mortgage Association (FNMA) — a government backed business — announced last week that it had invested $20 billion during the first half of 2008 in multifamily housing in a bid to shore up that area of the housing market.

“Affordable rental housing is increasingly needed during this housing and mortgage market downturn. Fannie Mae is increasing our product offerings to provide additional liquidity to meet the changing market needs,” said Phil Weber, SVP of Multifamily at Fannie Mae.

Billions Invested In Housing

Fannie Mae’s effort helps to meet the sharply increasing demand for rental housing, by purchasing Small Multifamily Loans of up to $3 million, or $5 million in certain markets. These types of loans typically undergird a an affordable asset class consisting of properties that are located in urban areas near public transportation and serve working families.

Fannie Mae invested approximately $5 billion in Small Loans in the first half of 2008, a significant increase over 2007 mid-year production of $3 billion. The company rewrote the Small Loan Guide and restructured its multifamily business to improve execution. It also made available the Micro Loan product earlier this year, which increases liquidity for small balance multifamily properties with mortgage loan amounts up to and including $750,000.

Seniors And Our Military Benefit Too

Other investment areas for Fannie Mae being planned include Senior Housing and the purchase of bonds benefiting military housing. These bonds are used to renovate existing on-base housing and build new units, something members of our nation’s military forces desperately need.

Fannie Mae was founded in 1938 as part of President Franklin D. Roosevelt’s New Deal program. At one time it dominated the secondary mortgage market until it was spun off as a semi-private corporation in 1968.

(Source: Fannie Mae)

Tags: Fannie Mae, multifamily housing, real estate