Recession, Inflation & Housing – Home Prices Fluctuate, Real Estate Market Responds to the Economy

Amazingly, financial reporters still are reluctant to say the American economy is in recession (which it most obviously is). Hence when inflation fully shows its ugly face, expect housing prices to catch up with oil which already accounts for the dying dollar (a currency no longer carrying much weight with OPEC as a basket of currencies is being embraced and the Euro and yen are taking preeminence).

Undoubtedly inflation and the recession caused by it shall weigh heavily on the Fed and we the American people. Since it seems financial reporters are usually about a year or two behind the actual occurrences in the market (that is reporting them honestly to the general public), always choosing to use colorful and positive language, it may be another year or two until we see the true signs of inflation in the real estate market. A big spending, pro-inflation government however will always prove inflationary when it comes to U.S. currency (since this sneakily reduces their repayments).

The U.S. economic forecast remains bleak to say the least. Latest reports released show that consumer-level inflation remains steady, while the housing slump shows no signs of improvement.

The U.S. consumer price index (CPI) rose 0.3% in March while the core rate, which excludes food and energy prices, was up 0.2%, following flat readings in February.

Energy prices are rising at a 17.0% year-over-year pace. Gasoline prices rose 5.2% and are up 26.0% from a year earlier.

Recent inflation reports underscore and highlight the the Federal Reserve’s ongoing challenges. “Ongoing hefty gains in headline prices will continue to needle (policymakers) despite the Fed’s near-term focus on economic risk, as the Fed faces an inflation problem that may have greater shelf life than the problems in the financial industry,” says Action Economics.

U.S. housing starts plunged 11.9% to a 0.947 million annualized rate in March, though after an upwardly revised 1.075 million pace in February (1.065 million before). Markets expected a more modest fall to 1.003 million. Starts are down 36.5% over last year. Permits fell 5.8% to a 0.927 million pace, and are down 40.9% over last year.

Contracts for housing will remain dismal as the recession deepens and the media hype dies down to the tune of reality.

Mobile Home Prices – How to Find Blue Book Value of Mobile Homes

The blue book value of a mobile home is exactly what it sounds like — a numerical value found in a book. In the past, there were multiple books. Today, there is only one book that contains the blue book value of mobile homes. It is called the N.A.D.A. Manufactured Housing Appraisal Guide. This guide is what the professionals use to determine the value of a mobile or manufactured home. The blue book value of a mobile home is calculated using a variety of criteria. This criteria may include geographic location, make, model, size and age of the home in question.

Even if you can access this manual, it is advisable to have a professional appraiser do the job for you. The formula for calculating the value of your mobile home can be quite complicated. Book value is going to be most accurate for mobile homes and areas that are deemed average in nature. It also depends on the position of the housing market in your area. Because this is such an in-depth process, you must depend on the services of a professional if you want things done right. There are certain reports you can purchase on the Internet that help you determine the market value of your mobile or manufactured home.

When you are buying or selling a mobile home, the blue book value will come into play. The majority of lenders require the book value when it comes to granting financing for people who need a mortgage loan in order to purchase their mobile or manufactured home. If you are not ready to hire a professional appraiser to come to your property, you can order an appraisal on the Internet. You will need to provide detailed information about the property for the online appraisal service to use. These types of services and reports provide you with an accurate idea of your mobile home’s blue book value so you can decide if you want to sell or not. Mobile homes do not usually appreciate in value, but this is not a hard and fast rule but rather a more general one.