KCM Blog

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Shadow Inventory

#1 Threat to Housing Recovery: Shadow Inventory

June 2, 2010

The concept of supply and demand is relatively easy to understand. It applies to real estate as it applies to any other industry. We must look forward to determine the upcoming supply of housing inventory just like every other industry does. As an example, let’s assume I own a hardware store in town. I have [...]

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Shadow Looms Over Home Prices

May 12, 2010

“We should pay heed to foreclosure activity, which have reached their highest level in at least the last five years. As these homes are put up for sale, we may see some further dampening in home prices.” – S&P Case Shiller Home Price Index 4/27/2010 “We expect the high rates of negative equity and foreclosures [...]

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6 Factors to Consider When Pricing Your Home

May 11, 2010

Yesterday, we showed how even the experts are having trouble determining price in the current real estate market. There are so many moving parts and each part is evolving rapidly. Today, we want to look at the major determining factors in establishing the current value of a residential property. If you currently have your house [...]

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Shadow Inventory about to See the Light

April 19, 2010

As I mentioned in a post earlier this month,  5 Keys to a Real Estate Recovery: I believe both the increase of distressed properties and the timing of their release to the market will be the biggest real estate story of 2010 … Anytime the supply of an item increases and demand remains flat, pricing [...]

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Housing in 2010: Supply Will Grow, Demand Will Slow

April 1, 2010

When we talk about future pricing on any item we must look ahead and determine two things: supply and demand. It is a rather simple concept but one that often is forgotten when we talk about real estate. In a blog post last week titled Pricing a House in Today’s Real Estate Market, I touched [...]

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Shadow Inventory: It’s Impact in 2010

February 19, 2010

We have often talked about a ‘shadow inventory’ of homes about to come to market. The two big questions are: What does this ‘shadow inventory’ actually consist of? How will it impact home values in 2010? Standard and Poors has just come out with a paper which sheds some light on these questions. Let’s look at the report. [...]

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The Impact of Foreclosures on Real Estate in 2010

January 18, 2010

Going into 2010 things were looking rather ‘bullish’ for the housing industry. Sales were up and prices seemed to be stabilizing.  But in the last few weeks we are starting to see how fragile the recovery actually is. Obviously, when the government ends its support after the first quarter (no longer holding down interest rates [...]

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One more time: IT’S ABOUT SUPPLY AND DEMAND!

January 5, 2010

Coming into 2010, there are many people trying to decipher all the data that is being reported regarding the housing industry. The main goal is to try and bring clarity to a market that has been clouded with confusion for the last two years. We must prevent ourselves from looking for a simple solution that will justify [...]

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Real Estate 2010: New Year, Less Fear

December 31, 2009

“Fear always springs from ignorance.” -Ralph Waldo Emerson Unlike last year, we are better prepared for the challenges ahead of us.  Knowing how the market is moving will help us in the decisions we make.  Here are a few things to consider when making your move into the New Year: Mortgaging Interest Rates – Rates remained [...]

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Should You Be Afraid of Shadows?

December 22, 2009

The two most important factors whenever you price anything is the demand for that item and the current supply of that item. It is well known as the supply and demand curve. Real estate is no different.  So, as we are about to head into 2010, let’s look at the potential demand for residential housing [...]

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