in this market should ask: “‘Am I in a safe
neighborhood with good schools and in a community that I like?’ If the answer’s yes, then their investment is no more of a risk today than the day they bought the house.”
Make the Most of It
How to navigate the subprime fallout
If you’re buying a home …
- Investigate all sources of funding. Work with a reputable lender and investigate community-based programs that may offer down payment or closing assistance. _Ultimately, make sure you fully understand the terms of the loan.
- Negotiate for what’s important. Get a home inspection report from a licensed contractor or home inspection company. Ask the seller to focus on critical repairs, but consider fixing cosmetic concerns yourself.
- Assemble a team. Get references for any professionals—real estate agent, mortgage broker, attorney, etc.—who will provide information that’s vital to your decision _making.
If you’re selling a home …
- Stage the home. Paint, replace carpeting, etc., to ensure the house appeals to the widest range of potential buyers.
- Price to sell. Work with your realtor, visit the local _property assessor’s office, and use online resources to research what comparable homes in your area are _selling for.
- Be willing to negotiate. Understand where you may need to be flexible to avoid killing the deal.
- Consider leasing. Weigh the possibility of leasing the home to minimize potential losses and buy some time for the housing market to improve.
If you’re managing your portfolio …
- Buy solid companies on the dip. Market volatility and investor fear can cause a stock to drop, regardless of the company’s future viability.
- Think defensively. As the economy slows, look for opportunities in sectors that are more likely to hold up in a downturn, such as healthcare and utilities.
- Check your asset allocation. Make sure that you’re holdings are diverse and make any necessary adjustments.
- Hold on to cash. Don’t be afraid to increase your cash position as you wait for increased stability in the _market.
Where’s the value of your home headed?
| Metropolitan Area | Median Home Price (2Q 2007) | Percent change from year prior | Percent change forecast,year ahead |
| Atlanta | $174,400 | 0.6% | 3.1% |
| Boston | 416,880 | -1.7 | -7.8 |
| Charlotte, NC | 202,750 | 4.5 | 0.9 |
| Chicago | 287,240 | 2.9 | 0.7 |
| Columbus, OH | 147,990 | -1.5 | 2.3 |
| Dallas-Fort Worth | 153,020 | -1.2 | 3.0 |
| Detroit | 100,320 | -2.1 | -3.4 |
| Houston | 151,860 | 1.7 | 2.3 |
| Indianapolis | 122,100 | 0.8 | 3.3 |
| Jacksonville, FL | 196,490 | 0.0 | -6.7 |
| Los Angeles | 553,560 | 5.9 | -8.3 |
| Memphis, TN | 141,510 | -0.9 | 2.0 |
| Miami-Fort Lauderdale | 380,220 | 2.7 | -7.6 |
| Nashville, TN | 183,370 | -1.4 | 2.1 |
| New York | 534,620 | 3.3 | -7.3 |
| Philadelphia | 235,800 | 2.9 | -4.7 |
| Phoenix, AZ | 260,620 | -1.5 | -10.9 |
| Raleigh, NC | 223,450 | 5.5 | 1.6 |
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