Real estate used to be an investment

The CR News Reports© is a copyright publication of Channeled Readings®. The following predictions on REAL ESTATE were channeled on April 15, 2010 directly from our “Higher Intelligence Source” and not from what we, the Mediums may think, reason, guess, analyze or anticipate from probabilities or trends. These predictions are not based in conspiracy theories or come from a doomsayer’s slant. We provide Survival News Predictions to help you overcome any fear of the future you may have and empower you to prepare for what’s coming… How much is your home worth? In Detroit, you can purchase a home for $700. In Lake Tahoe, you can find one listed for $100 million. The truth is that your home is only worth what somebody will pay for it. That is, if they want it, can afford it, and can qualify for a mortgage. Home prices have dropped 30% – 50% and more in some areas and are still declining. To compound the problem, there is a glut of foreclosed homes that banks are trying to sell and that inventory is growing each month. Every day, there are more notices of foreclosure sent out, more homes going back to the bank, and also more sellers willing to take a short-sale just to get out from under the increasing burden of their real estate. So what happened to real estate being the best “investment” you could ever make? Weren’t you supposed to buy a “starter home” and then make a profit on it when you sold it? Then you traded up when the kids came into the “family home” and sold again at a profit when the kids were all gone and you were planning retirement? Did you ever think that your home may not increase in value at all? Or, think that it could possibly be worth less than you paid for it years later when you tried to sell? US Census Bureau data shows that 15% of the nation’s housing is sitting vacant; that is 18.8 million homes. The average price of a home has fallen to $290,000 in 2009. The average household income estimated for 2009 is around $65,000. Is owning a home even affordable at these numbers? The old formula for an “affordable” home was three times a person’s annual income, or $195,000 at today’s average numbers. This means that the average person can only afford a home valued at $195,000 with a minimum down payment. What this is saying is that the “average” home price must fall another $95,000 (33%) in order for homes to be affordable to the average worker. This puts the average buyer in a tight spot. In many areas of the country, the price point of $195,000 is an illusion. How many $195,000 homes are out there? What percentage of the 18.8M vacant homes are in this price range or less? Even then, is it an “investment?” Or, is it an asset poised to decline further? Does it make sense anymore to look at your home as an asset? Welcome to the new real estate reality. …Go ahead with your predictions and commentary…

“All investments can do three things. They can go up, they can remain flat, or they can go down. With more bank inventory coming online, home prices will be forced down. With the average personal income around $65,000 that only allows for about $4,500 per month left over after taxes. This would not include state taxes. So, the average household has $4,500 to spend. Take the average family with two kids and start subtracting from $4,500.” continue MEMBERS-read the rest of these predictions in the CR News Reports©, or click HERE to order yours now to get all the “News Before It Happens … The Nostradamus of the NEWS.” Not a Member? … want to listen to this entire prediction?

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