A Great Shadow of Burden

By John McGory

“It is said that hope is like the sun, which, as we journey toward it, casts the shadow of our burden behind us.” Samuel Smiles

Real estate continues to have a great shadow of burden in front of it as it struggles to recover.  The Real Estate Swami quotes Standard and Poor’s recent report that shows a shadow inventory of four to five million houses in the U.S.  Shadow inventory are homes either owned by the bank or in some stage of foreclosure.

“What holds us back from a robust real estate market are the many houses owned by the banks.  If they were to release them all at once the real estate market would crumble,” says the Real Estate Swami.  “Slowly they will come off the books and our shadow of burden will be behind us.”

The S & P report shows there has been some improvement this year on whittling down the shadow inventory.  A 52-month supply of houses existed in the first quarter of 2011, dropping to 47 months in the second quarter. 

There is much debate on how long our shadow inventory will slow down the real estate market.  The local economies across our nation will determine how quickly these inventories disappear.  Central Ohio is seeing some strength return to its economy.  Housing sales jumped 23 percent in July.

The Real Estate Swami says to keep an eye on new job creation as a sign on where the central Ohio housing market is heading.

“Many home owners want to sell but are waiting on the sidelines for house prices to increase.  Supply will continue to exceed demand so any increase in price will be gradual.   As our local economy adds new jobs our shadow will shrink as we move toward a rising sun.”

The Real Estate Swami is brought to you by Web Face, a Columbus marketing and communications company. http://www.web-face-solutions.com/

Don't get lost in the wilderness of opinions

By John McGory

The events of the past few weeks have shown that the American public is fractured and confused.   Contentious negotiations over the deficit, a credit rating reduction and the corresponding stock market roller coaster ride have made many nervous over the direction of our country.

The Real Estate Swami preaches patience for those who have real estate and are considering selling.  He says that getting caught up in the rhetoric of the day is to be lost in the wilderness of opinions.

The swami points to comments made by Fannie Mae Chief Economist Doug Duncan that the U.S. is probably a little more than halfway through a 10-year adjustment period following housing market peaks in 2005 and 2006.  The value of U.S. housing stock has dropped eight trillion dollars since 2006.

“The long–term structural problems with the real estate economy will take time to correct.  Getting distracted by the wrangling in Washington can cause a confused mind,” says the swami.

Central Ohio average sales prices are down 3.5 percent from a year ago.  That indicates that buyers will continue to have the upper hand, says the swami.  Foreclosures have slowed due to banks moving slowly, which means another wave of foreclosed homes will be coming.

The swami warns not to become too passionate when considering your next real estate move.  He points to the words of the Buddha:  “As rain penetrates an improperly shingled roof, so passion overwhelms a confused mind.”
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Are You Afraid?

Sri Swami Sivananda writes in the Conquest of Fear that “Fear is illusionary; it cannot live.  Courage is eternal, it will not die.”

Today’s world of real estate is full of fear. 

Banks call themselves lending institutions, but they fear the lending of money and simply buy Treasury notes. 

Buyers are negative about the future and fear that the economy will not recover.  They sit on the sidelines and stew.

Government fears the collapse of real estate values, so it collects money from its citizens through punitive penalties and fines and claims it is not taxing people.

Owners of homes and businesses fear they are trapped and will not see the fruits of their labor of love.

The Real Estate Swami reminds all that good things come from love.  And what is love but enthusiasm, excitement and peace in your heart.  Those caught up in real estate fear need to meditate on what brings love into their hearts.

Bankers, buyers, governments and owners are all following their false egos.  They fail to envision a world of love so they remain paralyzed with fear.  Our real estate economy will not move forward until each of these entities pushes aside what they fear and pursues what they love instead.  Our world is more beautiful when just one person’s love expands and spreads to every living being.

Sri Swami Sivananda writes:  “Just as a rock on the seashore stands firm and the dashing of the waves does not affect it even a bit, even so a man who is endowed with courage is not affected by the dark perilous waves…He stands adamant in all trying conditions and circumstances and comes out victorious.”

Courage is what we need today in the real estate market.  The waves are crashing upon us.  Courage and an unshakable belief in what we do will conquer fear and false egos and bring us the peace and love we all want.

The Real Estate Swami is brought to you by Web Face, www.web-face-solutions.com

Wal-Mart, Westerville and Mass-Produced Urban Life

The Real Estate Swami sees turbulent days ahead for communities as Wal-Mart and other big box retailers move into urban neighborhoods.  Swami’s crystal ball shows many small business owners closing their shop doors in the coming years as a result.

The City of Westerville, Ohio, recently approved the building of a Wal-Mart in an urban neighborhood populated by many small shops.  This is an example of Wal-Mart’s plan to target urban areas since they have saturated the rural landscape.

A 2009 study* by the Center for Urban Research and Learning at Loyola University-Chicago highlighted the impact that urban Wal-Marts have on surrounding businesses.  The study of a Chicago neighborhood showed 82 of 306 area businesses closed their doors within two years of Wal-Mart’s opening.

“The beauty of the recent moon will not hide the pain and suffering many small business and building owners will feel in the coming days.  The vision of jobs, neighborhood vitality and the sense of community will vanish as a new reality sets upon urban neighborhoods,” reveals the Swami.

The Loyola University study shows that the probability of stores closing due to a new urban Wal-Mart falls off 6 percent per mile in all directions.  The types of establishments in danger include electronics, toys, office supplies, hardware, home furnishings and drugs. The report also shows area sales, jobs and taxes as flat or declining.

“The balance of local community is a delicate one,” the Swami says.  “Many desires and needs swirl within our collective spirit to form one face.  Let us meditate on the knowledge that change is constant. The community’s eyes and heart must be open to where the road ahead is leading.”

The Real Estate Swami is a service provided by Web Face, a communications and marketing company.  To find out more about Web Face go to www.web-face-solutions.com

*Davis, J., Merriman, D., Samayoa, L., Flanagan, B., Baiman, R., & Persky, J. (2009). The Impact of an Urban Wal-Mart Store on Area Businesses: An Evaluation of One Chicago Neighborhood's Experience. Chicago: Center for Urban Research and Learning, Loyola University-Chicago.

A Bright Star in Columbus' Future

The Real Estate Swami sees that MSN Real Estate ranks Columbus the 9^th best city in the country to rebuild homeownership.  The Swami perceives this as a bright star in central Ohio’s future. 

The survey ranked mid-to-large-sized cities.  Columbus was the largest city in the top ten, with Scranton-Wilkes-Barre, Pa. at the top.

The Swami’s crystal ball shows this trend to bode well for central Ohio.  Many affordable houses were constructed here in the fifteen years prior to the real estate crash.  Swami sees this stockpile of homes as an eventual benefit to central Ohio as the economy starts to grow.

“The pain of overbuilding is real to many in our community.  But the suffering will end when the jobs begin to return,” reveals the Swami.  “Many communities do not have the available infrastructure in place to accommodate growth.  New housing is not being built.  Communities that have good housing stock in place will be attractive to those who produce jobs.”

Swami believes that man creates his own destiny.  He considers Columbus’ selection as a top place to rebuild homeownership as a blessing.  Our challenge will be to take care of all our brothers and sisters.

“Our region is blessed with gifts including an ample water supply, a strong logistics component and enlightened young workers.  Our strengths can help all of our people blossom.  The region needs to focus more on taking care of its own and then the fruits of our labor will multiply.”

The Real Estate Swami is a service provided by Web Face, a marketing and communications company helping companies and central Ohio grow in responsible ways.  Learn more at www.web-face-solutions.com.

Selling Your Ashram or House

The Real Estate Swami says follow the experts for enlightened  advice on selling your  house.  They will not lead you astray.

Whether a seller is listing a home or an ashram for sale, following certain paths will entice buyers to make an offer.         

            Experts at HGTV have several pointers:

1.  Keep the first impression the best impression. Make sure the curb appeal is welcoming with a well-trimmed lawn, fresh flowers and a clean front door. Make sure the entryway is inviting to visitors and not cluttered with coats and car keys.  The swami says less is more.

2.  Once a house is listed for sale, agree to show it whenever a Realtor calls. Keep it ready to show, with beds made, dishes put away and bathrooms sparkling.

3.  Forget a massive makeover. Do projects that pay off including fresh paint on the walls, clean curtains, updated cabinet handles and fixing leaky faucets.  Spending money will not bring happiness.

4.  Put personal items in storage. The family photos, the knick-knack collections, the sports trophies all need to be boxed up. Once the home is de-personalized, a buyer can imagine living there.  Each soul wants to live in their own home.

5.  Finally, embrace the light. Clean windows, change lampshades, trim the bushes to let in sunshine – if a house is bright and cheery, buyers will be inclined to make an offer.

The swami sees more home sales in the future if sellers follow this path. For more tips on selling a home, see www.hgtv.com/reale-state/10best-kept-secrets-for-selling-a-home/index.html

Swami and the 2011 Real Estate Crystal Ball

As the swami gazes into the real estate crystal ball to determine the future, he sees a very localized central Ohio housing market. Some good areas and some not so good. Here are his guiding visions as you consider your neighborhood.

1.      An overcorrecting market:  Prices may have dropped too much.  If prices are below 2002 levels in your neighborhood improvement may soon occur.

2.      Overdevelopment:  The swami sees too many houses built in some neighborhoods before the crash.  Over supply is a red flag in newer developments.  It may mean prolonged pain.

3.      Jobs, jobs, jobs:  Swami sees new jobs coming.  These areas will see a quickly improving housing market.

4.      Lifestyle: The swami sees people having fun, listening to music and going to farmers’ markets.   Swami sees some neighborhoods with lifestyle attractions for today’s buyers.  Is it walkable? Nearby parks? Fun things to do around the neighborhood?  If yes is the answer to these questions, then swami sees great things ahead.

5.      Responsible government:  Swami sees turmoil ahead for local governments.  Are your local taxes reasonable?  Schools ok?  Sane growth policies that make sense for sustainable growth?  Again, if yes is the answer good things are ahead

The swami sees these trends impacting the market for the foreseeable future.