The analytics company founded by housing authority Robert Shiller, MacroMarkets LLC, has polled a group of 92 housing market experts. The consensus of opinion is that the single family housing market will begin wide-spread recovery in 2011.

This group predicts that housing prices will rise 12% between 2010 and 2014. There is anticipated to be a bit of a downward pull on housing prices during 2010 prior to the sustained upswing.

There was a difference of opinion among the experts. Some believe that housing prices will rebound vigorously by up to a 37% price hike over the next 4 years. More than one expert, however, expect to see significant price declines over the next 4 years.

If the average expectations of these experts come to pass there will be appreciation in the value of the nation’s housing stock that will equal $2.1 trillion in less than 5 years.

RE.WealthCoach.com

It’s always good to think about what it is we need to do to keep up with the current real estate market.  Here are 5 things we all need to KNOW!

1)  Have a Back-up Plan.

We’ve certainly known this forever, but have we really taken the time to do so…obviously NOT!  We need to think ahead and think “out of the box”.  Look at possible scenarios and come up with a list of all the possibilities. We can learn from our mistakes and use this knowledge to make the changes we need to make.  Do you need to downsize?  Is it time to invest in a nice rental property…what is it you need to do?  Make a plan.

2)  Where’s the Money?

Keep some cash close. Be sure that you have some cash you can get to in case of an emergency.  We certainly saw this recently from the largest financial institutions to the homeowner.  Not having enough liquid assets created chaos and instability not to mention the stress and worry around personal assets and even day to day management of money.  It’s always good to have some extra cash in case of emergencies.

3)  Don’t forget your credit line.  We all know that banks have tightened funds and lending avenues, however maintaining relationships with your banks or sources of money is very essential.  Don’t wait until you need money to keep that relationship with those sources active. Update your financial statement once a year and taking to your bank will let them know you are on top of what is happening with your financial picture.  Maybe you need to consolidate and sell something to get back in the black.  Be on a conscious level with your situation and don’t stick your head in the mud.  Get good counsel.

4)  Know your financial picture.  You can’t change what you don’t acknowledge.  Think out of the box….what is it you really need to do to make changes that will benefit you in the long run.  Talk with your spouse or council with your accountant or financial advisor. Do what it is you need to do to stay on top of things.

5)  Stay positive!  Remember like attracts like and the if you want to succeed with money or real estate or LIFE…you need to put your energy and focus on what will bring you more of the same.  Look at what it is you want.  Give yourself permission to dream and plan and look at what lifestyle you want to live.  It’s okay.  BE POSITIVE!  Surround yourself with others that are positive too!

To better understand the methodology involved in pricing real estate, one must first look at the current market conditions. Just because a home “costs” this much to construct does not mean it is worth that much money. The price of a home is determined, often, but the sales of comparable homes in a given area. This means, if the real estate market is tanking and homes are being sold at lower than market value, the market value will lower. (We have certainly seen that in the past 18 months!)

Forced Listings Versus Non-Forced Listings

There are two types of real estate listings – the forced and the non-forced. The forced real estate listing is offered by a homeowner that MUST sell their home. The sale could be attributed to a new job or a move to a new location, or it could have something to do with selling the home to escape foreclosure. No matter the reasoning, the homeowner is in a position to sell their home for a price lower than the market value in order to get the home “off their back” so to speak. Sometimes the home owner has had to relocate due to a job transfer and the house is being sold by the “company” and they are ready to move it on.

The non-forced listings include homes on the market because the seller WANTS to sell the home. They may be contemplating a move or thinking about job relocation, but by no means are they feeling forced to sell their home. Many higher end real estate listings fall into the non-forced category. However, there is a link between the forced and non-forced listings that could call for a price “reset” on higher end homes.

Resetting the Market Value

The market value of a home is directly linked to the sales price of homes in a given area. I remember one real estate agent telling me a story about an exclusive neighborhood with $400,000 and $500,000 homes that felt the effect of one below market sale. A new homebuyer moved into a home without knowing a crucial fact about the home’s history. When the new owner was told about this history, they listed the home for sale well below the market value. The home sold and instantly the surrounding homes were worth nearly half of what they were just a day before.

When the forced listings contribute a huge percentage to the total home listings in a given area, there is no “quality” protection given to ANY home, even if the home is a higher end piece of real estate worth a million dollars or more. Eventually, the non-forced home listings will take one of two actions – the price will be “reset” based on current home prices or the home will be removed from the market.

Forcing a Price “Reset”

There is nothing saying that a potential homebuyer cannot offer less for a home than the listing price. As a matter of fact, most real estate agents will suggest the potential buyer offer a lower price unless there is heavy competition for the home. The time to get that piece of prime real estate for lower than market value is NOW. While the high end real estate market may have held on to their 2006 prices to date, the time is quickly approaching when a price “reset” is inevitable.  If you have a home in the “high end” market be sure to look at all your options and always attempt to “think out of the box”!

Summer has arrived (this weekend) and it really FEELS like summer!  Good thing being in the mountains makes a difference,  often ten degrees or more from downtown Atlanta and many people have discovered that very fact by locating to the  North Georgia Mountains.  Since this is my first blog, let me give you a brief history of myself and The Wheeler Group, Inc.  I started The Wheeler Group, in 1984 in Atlanta (I can’t believe it’s been 25 years!)  It was a very humble beginning  with myself and two others in a small office in the Cumberland Mall area of Atlanta.  Prior to starting my own company, I was the Vice President of Southeast Realty and prior to that an associate with The Oxford Group.  Both of these companies specialized in commercial real estate and in particular shopping centers and land development.  I entered, the illusive arena of commerical real estate with a background and degree in fashion merchandising and marketing.  A single mom, with a small child, I wanted to do something creative that would use my merchandising background and not limit my earning potential.   I learned very quickly to lease shopping centers and sell land!  I was lucky to have not one, but two of the best mentors in the business, Dan Dupree and Tom McAuley. (Dan Dupree/President of Cousins Properties and TomMcAuley/IRT Properties.  I learned a great deal from both mentors and within a short time was up and running with my own company that specialized in shopping centers and consulting.  Named one of the Top women Entrepreneurs in Atlanta and in “my element”  I truly enjoyed my real estate work and those that I trained and worked with!  Fast forward to 1998 and I had made a major move to North Georgia to live and continue in the real estate business.  I had built a very successful commercial real estate company and management company however, decided I wanted to live something and do something related, but different.  Following my intuition, which is a major part of who I am,  I started working with luxury properties, including land, residential, commercial and whatever made sense.  My lifestyle change, living on a farm, and working whereever my calling was….worked for me and for my clients.  I sold a retreat center, a bed and breakfast, numerous parcels of large land tracts, river properties, leased a fabulous property in downtown Atlanta and worked with wonderful people that were looking for lifestyle  properties all over North Georgia and Atlanta   My clients were looking for a professional real estate person to either sell their property or find that unique property that they were looking for.  Something that inspires and connects to more than “just a home”.  We all know that “HOME” means something very different from a house.  We all have dreams and envision a lifestyle we want to live, that touches who we are as a person and adds value to our life and is a “smart” investment in the long term!  I love real estate and I love the creative aspect of being in the process from beginning to end.  All of that said….I welcome you again, and stay tuned for more real estate news!  If you have something to sell or need real estate advice.  Call…