What Freud Can Teach Us About Integrated Realty Group best nellie gail ranch real estate agent

Housing specialists now Use a plethora of large tech possibilities around to boost their small business, but hardly ever can we thoroughly consider the worth of the lockbox - the sole piece of apparatus answerable for letting agents to indicate the residences that we sell day-to-day. The lockbox itself has advanced over time, and today brokers discover themselves evaluating the worth from a regular combination lockbox to that of a far more high-tech electronic lockbox. Real estate brokers currently are pressed from all sides for expenses, dues, and expenses which are unavoidable fees of undertaking business, so In regards to generating a choice in between a mixture lockbox which is just a couple of dollars versus a higher-tech electronic lockbox that's considerably costlier, does the increase in Expense justify the worth? Also, what are all the choices in existence for electronic lockboxes? This short article highlights the conclusions of recent industry possibilities offered.

Acquiring the chance to exhibit a house with no sellers there to look at your every single go was a transfer in the best direction with the real estate property marketplace. Agents know really perfectly the specific situation wherever a seller will continue to be in a house throughout a demonstrating and "fake" like They can be minding their own personal organization though the potential buyers tip-toe throughout the household seeking not to impose whilst trying to get a sense of just what the dwelling was like.

This is the wild departure from the typical showing in the event the sellers are not there; clients love to snoop around in order to get a fantastic perception of the home. With all the sellers not there, the buyers get a good opportunity to get a true perception of how that particular home would sense and when they could see on their own residing there. Set merely, it permits an even better, additional convenient exhibiting practical experience.

From this Predicament the lockbox was invented. A tool securing The main element for entry by certified property agents to indicate their potential consumers, and it permitted sellers (or their agents) the chance to have the home shown with no will need in their presence. It saved time, and permitted for a greater exhibiting encounter. Truly, it had been a earn-acquire.

Having said that, early lockboxes were being just a mixture lockbox. They're surely affordable, but an apparent downside was The shortage of protection for the house in problem when the lockbox code was acknowledged. Sellers would trust in the Skilled ethics of property agents to help keep the code confidential, but often the code would slip into palms of non-brokers. Fewer commonly, the code will be discovered by people with destructive intent.

With the apparent shortfall of relying on the honour procedure to help keep lockbox codes private, it offered the opportunity for a much better Resolution that could make it possible for for accountability combined with the ability to display a home without the seller staying existing. Due to this fact, it didn't take lengthy for "smart" lockboxes utilizing electronic engineering to come back into existence, Hence revolutionizing the process of showing a home. In advance of a seller and their agent would not definitely know who was showing the assets besides the confirmed appointments which were designed. Flash ahead to nowadays, and you have the chance to know just who and accurately when an individual exhibits a house with the usage of an Digital lockbox. With these sensible Digital lockboxes, only an agent or other authorized get together can entry the lockbox alone, further more emboldening the peace of mind to your vendor that only accredited agents and thoroughly authorized people are showing or moving into their house.

Right now you will discover 2 principal firms that offer these clever Digital lockboxes to real-estate company associations. These are Supra essential and Sentrilock. Jointly they comprise nearly all of the lockbox business marketplace; nobody else comes shut.

Supra (or SupraKey) is owned by basic electric and supplies lockbox solutions to all sorts of niche industries, real estate property lockboxes becoming one of them. Invoice Enjoy, national account manager for Supra, claims that out of a provided point out or location in the country, Supra, on ordinary, maintains an eighty% current market share. Supra has sold several million lockboxes all over the years to real estate brokers, and at this time Enjoy estimates that there are 1.5 million+ Supra lockboxes at present in use by about 750,000 real estate brokers all over the country.

The supra important alone encompasses a cylindrical style up towards the "shackle" (the loop Component of the lockbox that could noose close to a little something and preserve it as an alternative securely) exactly where the shackle matches in seamlessly. Its simplistic design is satisfying to the attention, also to activate the lockbox, an agent features a "digital vital" that is about the dimensions of a small flip cell phone and has a variety pad and screen on it. The agent sets The important thing to open a box and details it while in the path of the infrared sensor over the box by itself. When the lockbox recognizes that it currently being accessed through the remote digital important, it is going to release to allow access and The underside from the lockbox will fall out when It can be pushed via the agent, and voilà, The true secret to the house is accessible for the agent to consider and open the door to the showing.

Adore claims that Supra has plans for updates to The present model lockbox that will incorporate the ability for wi-fi Bluetooth obtain and syncing. Also, as opposed to acquiring the digital critical, if the agent provides a smartphone, Supra offers an app for accessibility Along with the mobile phone as a substitute, which makes it less difficult and more handy, for any month-to-month price. Adore statements which the important distinction by using a Supra Lockbox is the fact that "it retains intelligence in the hands from the consumer." In lieu of needing to count on added equipment or other trades individuals, the user has the Handle. Supra has had the current model for a number of a long time now with incremental application updates together the way. If an agent desires to buy a new Supra lockbox, it expenditures all around $90, but the particular cost that an agent will pay is set through the Affiliation that they belong to.

Sentrilock is one other significant participant within the housing lockbox industry. Sentrilock, which happens to be based away from Indiana and is partially owned via the Nationwide Affiliation of Realtors has been around for less than ten years and at present products and services about 250 on the one thousand+ Realtor associations through the entire state and Canada also. These associations comprise about 250,000 brokers and around 500,000 lockboxes in existing use. Sentrilock has 2 key types which can be now applied; 1 is a silver lockbox that resembles a cellular telephone in the late 1980's, bulky and significant and rather for a longer time in dimension compared to the supra lockbox. It's got a important pad immediately about the entrance on the lockbox itself, and retains The important thing in a fall-down doorway that pops open when accessed.

One other lockbox they offer is often a scaled-down, additional compact blue lockbox which is much more cube-ish in form but With all the similar operation features. The principle difference between the silver and blue lockbox would be that the blue lockbox permits more room throughout the lockbox itself (which is vital for folks wanting to provide a condo and who need to have to include an "entry fob" Together with The real key to the entrance door from the unit itself - there just isn't ample home for multiple keys or when such as the obtain fob with Sentrilocks' silver lockbox). Sentrilock sells their lockboxes for approximately $125 a chunk, but this also depends upon in which you are having it from, as the actual retail price is determined through the regional real estate property Affiliation that sells the bins.

The two lockbox providers present substantial warranties around the products them selves. They also have a assist workforce that may be nearly always available inside the event You can find issue in accessing a lockbox, or for troubleshooting uses. Both of those businesses present a comprehensive on the web Resource that can offer the analytics through the showings and utilization of a certain lockbox which brokers can use to share with their consumers.

A lot of the principal variations among both of these are how the lockbox itself is accessed. Sentrilock would not will need an additional piece of equipment to open a box. Instead, they make the most of a "Good-Card" which is essentially a credit history-card that matches in the lockbox and it has a chip inside it that shares your details Along with the lockbox you will be accessing. This card is all you'll want to obtain the lockbox, whereas Supra needs the digital important, While they've got addressed this via featuring the good-mobile phone app so an agent can use their mobile phone rather than the electronic key. Each units involve updating; in other words, the wise card to the sentrilock technique needs you to stick your card inside of a "card reader" that you choose to get if you obtain your intelligent-card that hooks into your computer. Just about every number of times (the exact number of times is set by your local Real estate agent Affiliation) you will need to update the cardboard through the card reader, which will assist you to demonstrate property, and concurrently uploads the information of the locations you may have revealed to your Sentrilock method, which subsequently is then in the position to be witnessed by the brokers who owned the lockboxes on the spots you accessed. In a very pinch you may update your card about the cellular phone, however , you can only do that once or twice.

On the other hand, supra keys update wirelessly. They did not normally do that, where you ended up needed to maintain your "electronic essential" docked over a charging station that was connected to your cellular phone line. You had To accomplish this everyday and that's how the technique would both update your card in addition to share your displaying info to the method. The wireless updating feature continues to be in spot for a 12 months or two now, and requires the headache out from the equation of getting you update your vital Every single and each working day.

The back again conclude system for Sentrilock enables an agent to create distinct access codes for a single-time access of a selected lockbox. This can make it actually convenient for just a contractor, appraiser, termite inspector, and so forth. to have the ability to access a assets having a code, but just one time simply because that code will expire once the working day the code was meant to be utilized. This is an excellent aspect that Supra does not have a solution to.

Despite the fact that you will discover Rewards to the two systems, any agent can not only decide on which lockbox process they want to use - This is certainly decided, agreed to and contractually obligated amongst either Sentrilock or Supra and an agent's local property Affiliation. These associations, at the time they have got agreed over a program to implement can then "tweak" the system to their discretion and preference. Things such as the price of a lockbox, whether or not the lockbox is leased or offered to agents, the quantity of periods an agent can renew their essential by mobile phone, the quantity of days that may elapse right before an update of an entry critical is required, these and even more possibilities could be tweaked and many real estate property industry experts are unaware that other choices or Choices exist.

When comparing the advantages more than your conventional mixture lockbox, an agent will have to have the capacity to justify the included cost of a wise-Digital lockbox by the worth it provides. It is easy to take action, especially when getting the vendor's finest pursuits at coronary heart, given that the good lockbox will ensure accountability and an even better safety and safety measure for the exhibiting course of action and for the house itself. Its analytics facts and the opportunity to Management who can in fact achieve entry to the house are tantamount to efficiently having the ability to gauge the desire in a home through how Many of us have an interest in looking at it together with being able to relaxation guarantee the vendor that a house is getting demonstrated but in quite possibly the most secure manner feasible.

For the duration of this most recent downturn during the economic system, most housing marketplaces all over the region were being inundated (and a few nevertheless are) with foreclosure assets. Specified property brokerages that specialized in this sort of distressed property had the very best decades of manufacturing on file for that 2008 and 2009 yrs. Every one of these Attributes that required to be proven and offered needed lockboxes, but the worth supplied by a wise lockbox through Sentrilock or Supra didn't justify the cost to accumulate, as distressed-home brokerages had inventories of fifty, 100, 200 or 300 Homes in a given time. The smart lockboxes ended up way too highly-priced, particularly when considering that the house in question was owned via the bank, it absolutely was vacant and the analytics of showings failed to make any difference any time a provided foreclosure property is providing very quickly at all with several delivers. If an agent is carrying even 50 listings with a smart lockbox, it entails $5000 worthy of of lockboxes needed on all of the Attributes he/she has available for purchase. At this time, a less expensive mix lockbox from Lowes for $seven appears to be way much better and the overall outlay to the lockboxes is considerably much less. It really is a combination of utility value and In general value paid out through the standpoint on the real estate Specialist, so it begs the query, why will be the good lockboxes so high priced?

Place basically, the marketplace will bear The present selling price place of the two the Supra and Sentrilock lockboxes as the worth they offer are very well well worth the cost. That being said, selected corporations have appear into existence that are poised to make the most of the quantity of agents that need to promote their applied lockboxes together with the agents on the market who don't want to pay retail for that lockbox(es) they need for their business. Blake Nolan, co-owner of San Diego primarily based LockboxSwap has established a website wherever a secondary current market has long been made and regulated for the two the Sentrilock and top real estate broker in nellie gail ranch Supra lockbox techniques. Nolan suggests his business can assist brokers acquire or provide their lockboxes As well as in the process help save time and money. "Right this moment there isn't any real position on line that gives what we provide" Nolan Claims. He continues that "if you get in touch with into (any association) and talk to about made use of lockboxes, or wherever to provide your own personal lockboxes, they are saying to go attempt craigslist or Ebay. We developed LockboxSwap to deal with this broad and untapped market option."

Nolan's' LockboxSwap enterprise strategies to unveil the organization this summer months, and preliminary beta-exam customers have provided rave opinions.

On this planet of Real estate agent lockboxes, sensible-lockboxes are preferred as the Total benefit inherent in being able to protected a home, controlling the use of entry and owning analytical accountability much outweighs the alternative of the conventional blend lockbox (or no lockbox in any respect) Even though the 2 primary players while in the Realtor lockbox arena have 2 great items, both of those fall wanting staying a hundred% great. They both of those do some items very well and possess the capabilities that the other will not. It could be terrific to have the ability to merge both of those merchandise and concepts together, but considering the fact that that's impossible, It really is up to every person Realtor Affiliation to job interview and decide which corporation is a much better "match" for them. At the conclusion of the day, the 2 businesses and respective goods, Despite the fact that imperfect, represent competition in between one another which retains efficiency and innovation high when preserving selling prices in Examine. Organizations like that of LockboxSwap assist to do this further more by inventing and establishing the precedent for an sector that hereto has nonetheless to exist, but has the opportunity to present you with a Value-productive substitute to Real estate agent industry experts when it comes to their lockbox demands.

Regardless of the, It can be apparent the sector is relocating in the appropriate direction; we are witnessing technological progress that enable to provide Realtor industry experts do their task greater plus much more effectively, and it truly is interesting to find out what will be the norm within the around long run in addition to the lasting. For now, Realtor gurus must be self-confident in being aware of that when It really is great exactly where we stand today, the long run is only having brighter.

The 12 Worst Types cheap houses for sale Accounts You Follow on Twitter

1. Analysis of Today's Market

2. Update On Gold

3. Real Estate Prices In South Florida

4. Real Estate Nationwide

5. Yield Curve Is Still Inverted

6. What this means to you

1. Analysis of today's market

As an analyst of the economy and the real estate market, one must be patient to see what unfolds and to see if one's predictions are right or wrong. One never knows if they will be right or wrong, but they must have a sense of humility about it so that they are not blind to the reality of the marketplace.

In March of 2006, my eBook How To Prosper In the Changing Real Estate Marketplace. Protect Yourself From The Bubble Now! stated that in short order the real estate market would slow down dramatically and become a real drag on the economy. We are experiencing this slowdown currently and the economy I feel is not far from slowing down as well. History has repeatedly shown that a slow down in the real estate market and construction market has almost always led to an economic recession throughout America's history.

Let's look at what is happening in the following areas to see what we can gleam from them: Gold, Real Estate in South Florida, Real Estate Nationwide, Yield Curve/Economy and see what this means to you:

2. Gold

If you have read this newsletter and/or the eBook, you know I am a big fan of investing in gold. Why? Because I believe that the US dollar is in serious financial peril. But gold has also risen against all of the world's currencies, not just the US dollar.

Why has gold risen? Gold is a neutral form of currency, it can't be printed by a government and thus it is a long term hedge against currency devaluation. James Burton, Chief Executive of the Gold Council, recently said: "Gold remains a very important reserve asset for central banks since it is the only reserve asset that is no one's liability. It is thus a defense against unknown contingencies. It is a long-term inflation hedge and also a proven dollar hedge while it has good diversification properties for a central bank's reserve asset portfolio."

I agree with Mr. Burton 100%. I believe we will even see a bubble in gold again and that is why I have invested in gold to profit from this potential bubble (Think real estate prices around the year 2002 - wouldn't you like to have bought more real estate back then?)

I had previously recommended that you buy gold when it was between $580 and $600 an ounce. Currently, gold is trading at around $670 an ounce up more than 10% from the levels I recommended. However, gold has some serious technical resistance at the $670 level and if it fails to break out through that level it might go down in the short-term. If it does go down again to the $620 - $640 level, I like it at these levels as a buy. I believe that gold will go to $800 an ounce before the end of 2007.

3. Real Estate in South Florida

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Real estate in South Florida has been hit hard by this slowdown as it was one of the largest advancers during the housing boom. The combination of rising homes for sale on the market, the amazing amount of construction occurring in the area and higher interest rates have been three of the major factors of the slowdown.

For every home that sold in the South Florida area in 2006, an average of 14 did not sell according to the Multiple Listing Service (MLS) data. The number of homes available for sale on the market doubled to around 66,000, as sales slowed to their lowest level in 10 years.

Even though home prices were up for the year of 2006, the average asking price for homes in December was down about 13 percent compared to a year ago. From 2001 to 2005, the price of a single-family home in Miami-Dade increased 120 percent to $351,200. This is also similar to what happened in Broward County. The problem is that wages during that time only increased by 17.6% in Miami-Dade, and 15.9% in Broward, according to federal data. This is the other major factor that is contributing to the slowdown - real estate prices far outpaced incomes of potential buyers of these homes.

Another factor that helped drive the South Florida boom in prices was high growth in population in Florida. From 2002 to 2005, more than a million new residents moved to Florida and Florida also added more jobs than any other state. However, the three largest moving companies reported that 2006 was the first time in years that they had moved more people out of the state of Florida than into it. Also, school enrollment is declining which could be another sign that middle-class families are leaving.

By far though, the area of South Florida real estate that will be hit hardest is and will continue to be the condominium market. Due to their lower prices than homes, condos make financial sense in the South Florida area. However, the supply of available condos has tripled over the past year and it will get worse before it gets better. More than 11,500 new condos are expected this year and 15,000 next year with the majority of them being built in Miami.

As a result of the oversupply, asking prices for condos are down 12% in 2006 in Miami to $532,000. And incentives are substituting for price cuts. These incentives include paying all closing costs to free upgrades and more.

The last point to think about affecting South Florida real estate is the escalating costs of property insurance and property taxes. These increasing costs are putting more downward pressure on real estate prices.

My strong belief is that we are only starting to see the slowdown of the South Florida real estate market and that prices will continue to fall. Due to the fact that many real estate investors are pulling out, where are the next wave of buyers going to come from at these current prices? Unless a serious influx of new, high paying jobs enter the South Florida area, real estate prices, just like any asset that falls out of favor after a large runup only have one way to go... down.

4. Real Estate Nationwide

A report released last week from the National Association of Realtors showed that in the last three months of 2006 home sales fell in 40 states and median home prices dropped in nearly half of the metropolitan areas surveyed. The median price of a previously owned, single family home fell in 73 of the 149 metropolitan areas surveyed in the 4th quarter.

The National Association of Realtors report also said that the states with the biggest declines in the number of sales in October through December compared with the same period in 2005 were:

* Nevada: -36.1% in sales

* Florida: -30.8% in sales

* Arizona: -26.9% in sales

* California: -21.3% in sales

Nationally, sales declined by 10.1% in the 4th quarter compared with the same period a year ago. And the national median price fell to $219,300, down 2.7% from the 4th quarter of 2005.

Slower sales and cancellations of existing orders have caused the number of unsold homes to really increase. The supply of homes at 2006 sales rate averaged 6.4 months worth which was up from 4.4 months worth in 2005 and only 4 months worth in 2004.

Toll Brothers, Inc., the largest US luxury home builder, reported a 33% drop in orders during the quarter ending January 31.

Perhaps most importantly, falling home values will further decrease their use of mortgage equity withdrawal loans. In 2006, mortgage equity withdrawal accounted for 2% of GDP growth. Construction added 1% to last years GDP growth, so the importance of these factors are to the health of the US economy are enormous.

The other concern is sub-prime mortgages. Today, sub-prime mortgages amount to 25% of all mortgages, around $665 billion. Add to this the fact that approximately $1 trillion in adjustable-rate mortgages are eligible to be reset in the next two years and we will continue to see rising foreclosures. For example, foreclosures are up five times in Denver. These foreclosed homes come back onto the market and depress real estate values.

The Center for Responsible Lending estimates that as many as 20% of the subprime mortgages made in the last 2 years could go into foreclosure. This amounts to about 5% of the total homes sold coming back on the market at "fire-sales". Even if only 1/2 of that actually comes back on the market, it would cause overall valuations to go down and the ability to get home mortgage equity loans to decrease further.

Prepare yourself now because you can still get great advice from the eBook. Buy it with this secure link: https://shop.outstandingebooks.com/displayProductDocument.hg?productId=1

5. Yield Curve is still inverted!

The yield curve is still inverted. In a normal market, you get more interest (yield) for longer term investments. But very rarely the short-term rates become higher than long term rates such as now.

History has shown that an inverted yield curve is the best indicator of a future recession. The yield curve has been inverted since last fall, and if history is any judge we should be in a recession by the 3rd quarter of 2007. Throughout history, we have never had an inverted yield curve without a recession within the next 4 quarters.

The inverted yield curve does not cause the recession, it is simply a signal that something is out of whack in the economy.

6. What this means to you

One of two things could happen going forward in the real estate market: real estate prices will go up or they will go down. History has shown us that any asset that runs up, must come down, whether we are talking about the Dutch Tulip Market, the stock market bubble, the gold bubble of the early 1980s, or Japan's run-up in housing in the 1980's and subsequent 15 year decrease in values.

The big picture of the real estate market is that it goes up and down in cycles. It has been in an up cycle for 10 years and it is most likely time for it to face it's down cycle.

This is the natural cycle of assets:

* Markets go up

* Greed and insanity take over

* An excess forms (i.e. overbuilding)

* A downturn corrects the excesses in the market

This natural cycle is the same principle in "the big picture" as crash dieting is in "the little picture". We starve ourselves to lose 15 pounds, which shuts down our body for the short term, only for it to crank up higher when we go back to "normal" eating patterns.

And speaking of diets, I heard from an old high school buddy who has lost weight on a "cookie" diet where he eats one high protein dinner a day and only 6 low fat cookies throughout the day whenever he is hungry. While he has lost weight on this 800 calorie a day diet, I can't see how it is healthy to starve yourself like that. He told me that whenever he breaks his diet and eats any sodium, he immediately gains one and a half pounds. Talk about your body out of https://www.goodreads.com/topic/show/19357249-the-most-common-complaints-about-condos-for-sale-and-why-they-re-bunk whack! I still recommend exercise (www.mattfurey.com) combined with a low white-carb diet (no white bread, white pastas, and limited sugars). It works for me.

Set your portfolio up correctly now by reading the eBook at http://www.myrealestatebubble.com.

***Disclaimer: This information and the corresponding websites do not constitute professional services, including, but not limited to investment advice. Please consult a finance and/or investment professional for services and advice.

The Worst Videos of All Time About top realtor

1. Analysis of Today's Market

2. Update On Gold

3. Real Estate Prices In South Florida

4. Real Estate Nationwide

5. Yield Curve Is Still Inverted

6. What this means to you

1. Analysis of today's market

As an analyst of the economy and the real estate market, one must be patient to see what unfolds and to see if one's predictions are right or wrong. One never knows if they will be right or wrong, but they must have a sense of humility about it so that they are not blind to the reality of the marketplace.

In March of 2006, my eBook How To Prosper In the Changing Real Estate Marketplace. Protect Yourself From The Bubble Now! stated that in short order the real estate market would slow down dramatically and become a real drag on the economy. We are experiencing this slowdown currently and the economy I feel is not far from slowing down as well. History has repeatedly shown that a slow down in the real estate market and construction market has almost always led to an economic recession throughout America's history.

Let's look at what is happening in the following areas to see what we can gleam from them: Gold, Real Estate in South Florida, Real Estate Nationwide, Yield Curve/Economy and see what this means to you:

2. Gold

If you have read this newsletter and/or the eBook, you know I am a big fan of investing in gold. Why? Because I believe that the US dollar is in serious financial peril. But gold has also risen against all of the world's currencies, not just the US dollar.

Why has gold risen? Gold is a neutral form of currency, it can't be printed by a government and thus it is a long term hedge against currency devaluation. James Burton, Chief Executive of the Gold Council, recently said: "Gold remains a very important reserve asset for central banks since it is the only reserve asset that is no one's liability. It is thus a defense against unknown contingencies. It is a long-term inflation hedge and also a proven dollar hedge while it has good diversification properties for a central bank's reserve asset portfolio."

I agree with Mr. Burton 100%. I believe we will even see a bubble in gold again and that is why I have invested in gold to profit from this potential bubble (Think real estate prices around the year 2002 - wouldn't you like to have bought more real estate back then?)

I had previously recommended that you buy gold when it was between $580 and $600 an ounce. Currently, gold is trading at around $670 an ounce up more than 10% from the levels I recommended. However, gold has some serious technical resistance at the $670 level and if it fails to break out through that level it might go down in the short-term. If it does go down again to the $620 - $640 level, I like it at these levels as a buy. I believe that gold will go to $800 an ounce before the end of 2007.

3. Real Estate in South Florida

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Real estate in South Florida has been hit hard by this slowdown as it was one of the largest advancers during the housing boom. The combination https://realtor.com/realestateagency/Integrated-Realty-Group,-Inc._Laguna-Hills_CA__310284497 of rising homes for sale on the market, the amazing amount of construction occurring in the area and higher interest rates have been three of the major factors of the slowdown.

For every home that sold in the South Florida area in 2006, an average of 14 did not sell according to the Multiple Listing Service (MLS) data. The number of homes available for sale on the market doubled to around 66,000, as sales slowed to their lowest level in 10 years.

Even though home prices were up for the year of 2006, the average asking price for homes in December was down about 13 percent compared to a year ago. From 2001 to 2005, the price of a single-family home in Miami-Dade increased 120 percent to $351,200. This is also similar to what happened in Broward County. The problem is that wages during that time only increased by 17.6% in Miami-Dade, and 15.9% in Broward, according to federal data. This is the other major factor that is contributing to the slowdown - real estate prices far outpaced incomes of potential buyers of these homes.

Another factor that helped drive the South Florida boom in prices was high growth in population in Florida. From 2002 to 2005, more than a million new residents moved to Florida and Florida also added more jobs than any other state. However, the three largest moving companies reported that 2006 was the first time in years that they had moved more people out of the state of Florida than into it. Also, school enrollment is declining which could be another sign that middle-class families are leaving.

By far though, the area of South Florida real estate that will be hit hardest is and will continue to be the condominium market. Due to their lower prices than homes, condos make financial sense in the South Florida area. However, the supply of available condos has tripled over the past year and it will get worse before it gets better. More than 11,500 new condos are expected this year and 15,000 next year with the majority of them being built in Miami.

As a result of the oversupply, asking prices for condos are down 12% in 2006 in Miami to $532,000. And incentives are substituting for price cuts. These incentives include paying all closing costs to free upgrades and more.

The last point to think about affecting South Florida real estate is the escalating costs of property insurance and property taxes. These increasing costs are putting more downward pressure on real estate prices.

My strong belief is that we are only starting to see the slowdown of the South Florida real estate market and that prices will continue to fall. Due to the fact that many real estate investors are pulling out, where are the next wave of buyers going to come from at these current prices? Unless a serious influx of new, high paying jobs enter the South Florida area, real estate prices, just like any asset that falls out of favor after a large runup only have one way to go... down.

4. Real Estate Nationwide

A report released last week from the National Association of Realtors showed that in the last three months of 2006 home sales fell in 40 states and median home prices dropped in nearly half of the metropolitan areas surveyed. The median price of a previously owned, single family home fell in 73 of the 149 metropolitan areas surveyed in the 4th quarter.

The National Association of Realtors report also said that the states with the biggest declines in the number of sales in October through December compared with the same period in 2005 were:

* Nevada: -36.1% in sales

* Florida: -30.8% in sales

* Arizona: -26.9% in sales

* California: -21.3% in sales

Nationally, sales declined by 10.1% in the 4th quarter compared with the same period a year ago. And the national median price fell to $219,300, down 2.7% from the 4th quarter of 2005.

Slower sales and cancellations of existing orders have caused the number of unsold homes to really increase. The supply of homes at 2006 sales rate averaged 6.4 months worth which was up from 4.4 months worth in 2005 and only 4 months worth in 2004.

Toll Brothers, Inc., the largest US luxury home builder, reported a 33% drop in orders during the quarter ending January 31.

Perhaps most importantly, falling home values will further decrease their use of mortgage equity withdrawal loans. In 2006, mortgage equity withdrawal accounted for 2% of GDP growth. Construction added 1% to last years GDP growth, so the importance of these factors are to the health of the US economy are enormous.

The other concern is sub-prime mortgages. Today, sub-prime mortgages amount to 25% of all mortgages, around $665 billion. Add to this the fact that approximately $1 trillion in adjustable-rate mortgages are eligible to be reset in the next two years and we will continue to see rising foreclosures. For example, foreclosures are up five times in Denver. These foreclosed homes come back onto the market and depress real estate values.

The Center for Responsible Lending estimates that as many as 20% of the subprime mortgages made in the last 2 years could go into foreclosure. This amounts to about 5% of the total homes sold coming back on the market at "fire-sales". Even if only 1/2 of that actually comes back on the market, it would cause overall valuations to go down and the ability to get home mortgage equity loans to decrease further.

Prepare yourself now because you can still get great advice from the eBook. Buy it with this secure link: https://shop.outstandingebooks.com/displayProductDocument.hg?productId=1

5. Yield Curve is still inverted!

The yield curve is still inverted. In a normal market, you get more interest (yield) for longer term investments. But very rarely the short-term rates become higher than long term rates such as now.

History has shown that an inverted yield curve is the best indicator of a future recession. The yield curve has been inverted since last fall, and if history is any judge we should be in a recession by the 3rd quarter of 2007. Throughout history, we have never had an inverted yield curve without a recession within the next 4 quarters.

The inverted yield curve does not cause the recession, it is simply a signal that something is out of whack in the economy.

6. What this means to you

One of two things could happen going forward in the real estate market: real estate prices will go up or they will go down. History has shown us that any asset that runs up, must come down, whether we are talking about the Dutch Tulip Market, the stock market bubble, the gold bubble of the early 1980s, or Japan's run-up in housing in the 1980's and subsequent 15 year decrease in values.

The big picture of the real estate market is that it goes up and down in cycles. It has been in an up cycle for 10 years and it is most likely time for it to face it's down cycle.

This is the natural cycle of assets:

* Markets go up

* Greed and insanity take over

* An excess forms (i.e. overbuilding)

* A downturn corrects the excesses in the market

This natural cycle is the same principle in "the big picture" as crash dieting is in "the little picture". We starve ourselves to lose 15 pounds, which shuts down our body for the short term, only for it to crank up higher when we go back to "normal" eating patterns.

And speaking of diets, I heard from an old high school buddy who has lost weight on a "cookie" diet where he eats one high protein dinner a day and only 6 low fat cookies throughout the day whenever he is hungry. While he has lost weight on this 800 calorie a day diet, I can't see how it is healthy to starve yourself like that. He told me that whenever he breaks his diet and eats any sodium, he immediately gains one and a half pounds. Talk about your body out of whack! I still recommend exercise (www.mattfurey.com) combined with a low white-carb diet (no white bread, white pastas, and limited sugars). It works for me.

Set your portfolio up correctly now by reading the eBook at http://www.myrealestatebubble.com.

***Disclaimer: This information and the corresponding websites do not constitute professional services, including, but not limited to investment advice. Please consult a finance and/or investment professional for services and advice.