Seminar Review: Producer Nicholas Manfredi
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Written by Eric Olson
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 How
Low Will Housing Prices Go? The million-dollar question is still being
asked, “Just how far down are housing prices going to go?” The answer
may be easier to find than you think.
Nicholas Manfredi’s presentation covered this question using a
mathematical equation. By utilizing his formula, you can calculate
your own geographic area’s market bottom.
Liquidations
Nick pointed out that now is the worst time to sell a property. Prices
are down, obtaining credit is more difficult and the market in
higher-appreciating states is now flooded with excess inventory. Some
markets are seeing only forced sales of properties that must be
liquidated. Sellers are attempting these liquidations in the worst of
times.
“At which point will owning the property be better than renting?”
Short Sales
During these cycles, new markets of short sales begin to boom creating
margins on each short sale for the various companies involved in the
transactions. Many investment entities proclaim that we are at the
bottom, but Nick sees it much differently. Nick points out that several
hard money lenders are flipping more properties now than they were
earlier this year. At this point we need to consider other factors
that will have an effect on moving this market closer to the bottom.
Nick Manfredi
Renting versus Owning
The first factor is renting versus owning. At which point will owning
the property be better than renting? When a property’s market pricing
affords the average household a mortgage payment within 20% of the
average rental market pricing. That is a factor that the bottom is
near.
“…the only qualification: the ability to fog a mirror!”
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