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| JULY 2004 |
A Publication of
ELLIOTT® & Company Appraisers |
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IS THERE
A HOUSING BUBBLE? |
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 Are
we in for a decline in housing values? At least one prominent economist is
predicting a decline in U.S. housing values in the near future.
Cary Leahy, senior economist with Deutsche Bank, told an audience of
investors at a meeting in New York sponsored by the Association of German
Mortgage Banks that he predicted an average decline of 10% to 20% in
housing values across the United States.
The economist predicted a tighter money policy from the Federal Reserve,
including a 300-basis-point hike in interest rates between June 2004 and
the end of 2005.
“The big question in credit markets is ‘Can they do 50 bp (basis points)
in August after 25 bp in June?’” Leahy said.
Many believe speculators invested heavily in real estate during the last
two or three years with the historically low interest rates. If the rates
rise, as predicted, this may lead to a slowdown in real estate sales and a
drop in real estate prices.
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HUD
ISSUES LENDER ACCOUNTABILITY RULE |
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 The
Department of Housing and Urban Development now has a final rule that
holds lenders accountable for inaccuracies on appraisals of real estate
using FHA insured mortgages. According to the rule, the HUD review board
can sanction lenders that submit appraisals to this department that fail
to meet FHA requirements. According to HUD sources, the rule was adopted
to make sure that lenders realize their responsibilities concerning
appraisers and to make sure that buyers receive an accurate value of their new homes. |
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QUOTES
OF WIT & WISDOM |
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“Good laws have their origins in bad morals.”
– Ambrosius Macrobius
“The brain is a wonderful organ. It starts working the moment
you get up in the morning and does not stop until you get into
the office.”
– Robert Frost
“The perfect bureaucrat is the man who manages to make no
decisions and escape all responsibilities.” – Brooks Atkinson
“The income tax has made more liars out of American people than
golf has.” – Will Rogers
“As a manager, the important thing is not what happens when
you’re there, but what happens when you’re not there.” – Ken
Blanchard |
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ELLIOTT® & Company Appraisers
currently offers appraisal service throughout all 50 of the United
States. Clients are encouraged to place orders directly to any
office local to properties to be appraised or to the central office
for assignment.
Orders may
be placed via telephone, fax or through the company's Web site. All
Internet orders will be processed through the central office.
Some
Offices Are Independently Owned and Operated
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3316-A Battleground Avenue
Greensboro, NC 27410
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