Print this articleThursday, 06 April 2006
The Child Magazine voted Miami as one of the Ten Outstanding Cities in the US for families. Why not? Most families troop down to Miami every year for fun activities, delectable cuisine and places of interest that make annual family gatherings fun-filled and memorable - anyone who visits Miami look forward to coming back with gusto, year after year.
It is fast becoming a second home to most who kept on coming back for diverse reasons.
Employment opportunities in Miami are plenty and varied. Its people and culture are interesting. Miami is sun-drenched most parts of the year, but the climate remains pleasant, not humid. Whatever other reasons one may find, Miami is definitely one pleasant place to come home to.
The Real Estate Industry in Florida is aware of Miami’s potential to becoming a vacation haven, as well as being the prime choice for second homes. A buyer’s checklist on the most important relocation issues have been underscored by most real estate brokers to help facilitate a smooth and easy transition All the more reasons to choose Miami over other options:
Is it putting up a dream home or just finding a home within your present means? Miami’s Neighborhood Guide, as provided by the Greater Miami Convention and Visitors Bureau will set you off to a good start, and a directory of credible real estate brokers in the area offer extensive choices.
Opening accounts with Miami-Dade Water Department and Florida Power and Light can be done online – no more waiting time and long questionnaire to fill out.
As recycling of waste is mandatory in Miami, you may request for recycling bins from the local government’s service department. Schedule for trash collection can also be pre-arranged.
IT professionals, health care personnel and those in the travel industry will find employment in Miami, fast and easy. There is a big demand for these disciplines nowadays, job offers are not hard to come by.
Parents with children going to school will find Miami’s Public Schools and privately-run institutions at par with the rest of the nation’s educational institutions.
And that’s not all. Miami is a burgeoning destination for sights and sounds that titillates the senses.
The Ancient Spanish Monastery which was built in Segovia Spain during the 11th century is worth a visit. Pieces of the Monastery which was considered the oldest structure in the Western Hemisphere were brought abroad from Spain by William Hearst, a newspaper magnate. Miami developers reconstructed the Monastery to what it looks today.
Kick off (not too hard, lest you crack the bottom of the boat!) to Biscayne National Park in its fifty-three feet long boat with glass-bottom. This catamaran will glide you across Biscayne Bay. Immerse yourself in the solitude of nature as the catamaran passes through mangroves, creeks and deserted islands until it greets the sun again in the opposite end of the Bay.
Tired and hungry? Miami offers varied choices of sumptuous meals that suit the preference of the pickiest diner.
The Courtyard Grill offers a delectable treat of Mediterranean cuisine – in the courtyard! Outdoor dining is at its best in this restaurant that offers Florida’s sumptuous meals as added attraction. Or, take a walk to the Tides…catch the ocean breeze while enjoying French meal or taking samplings of Tides’ Asian flair. You can feast on a wide array of American cuisine, too.
Do you care for a swim? A swim at Miami beach with white expanse of sand will surely relax you. You will feel the power of the waves engulf your tired body and cast out fatigue.
These are some of the lures of Miami that every Real Estate Broker or Agent capitalize on every sale. Miami Beach homes are pegged at $75,000 to over $15 million – but nobody complains. Buyers know that they are making a good investment on a good catch like a Miami Beach property. There are also shopping centers, storefronts and buildings for sale.
Miami, definitely, is an investor’s dream and a real broker’s prize catch.
Miami Real Estate - Real Estate Press
The Child Magazine voted Miami as one of the Ten Outstanding Cities in the US for families. Why not? Most families troop down to Miami every year for fun activities, delectable cuisine and places of interest that make annual family gatherings fun-filled and memorable - anyone who visits Miami look forward to coming back with gusto, year after year.
It is fast becoming a second home to most who kept on coming back for diverse reasons.
Employment opportunities in Miami are plenty and varied. Its people and culture are interesting. Miami is sun-drenched most parts of the year, but the climate remains pleasant, not humid. Whatever other reasons one may find, Miami is definitely one pleasant place to come home to.
The Real Estate Industry in Florida is aware of Miami’s potential to becoming a vacation haven, as well as being the prime choice for second homes. A buyer’s checklist on the most important relocation issues have been underscored by most real estate brokers to help facilitate a smooth and easy transition All the more reasons to choose Miami over other options:
Is it putting up a dream home or just finding a home within your present means? Miami’s Neighborhood Guide, as provided by the Greater Miami Convention and Visitors Bureau will set you off to a good start, and a directory of credible real estate brokers in the area offer extensive choices.
Opening accounts with Miami-Dade Water Department and Florida Power and Light can be done online – no more waiting time and long questionnaire to fill out.
As recycling of waste is mandatory in Miami, you may request for recycling bins from the local government’s service department. Schedule for trash collection can also be pre-arranged.
IT professionals, health care personnel and those in the travel industry will find employment in Miami, fast and easy. There is a big demand for these disciplines nowadays, job offers are not hard to come by.
Parents with children going to school will find Miami’s Public Schools and privately-run institutions at par with the rest of the nation’s educational institutions.
And that’s not all. Miami is a burgeoning destination for sights and sounds that titillates the senses.
The Ancient Spanish Monastery which was built in Segovia Spain during the 11th century is worth a visit. Pieces of the Monastery which was considered the oldest structure in the Western Hemisphere were brought abroad from Spain by William Hearst, a newspaper magnate. Miami developers reconstructed the Monastery to what it looks today.
Kick off (not too hard, lest you crack the bottom of the boat!) to Biscayne National Park in its fifty-three feet long boat with glass-bottom. This catamaran will glide you across Biscayne Bay. Immerse yourself in the solitude of nature as the catamaran passes through mangroves, creeks and deserted islands until it greets the sun again in the opposite end of the Bay.
Tired and hungry? Miami offers varied choices of sumptuous meals that suit the preference of the pickiest diner.
The Courtyard Grill offers a delectable treat of Mediterranean cuisine – in the courtyard! Outdoor dining is at its best in this restaurant that offers Florida’s sumptuous meals as added attraction. Or, take a walk to the Tides…catch the ocean breeze while enjoying French meal or taking samplings of Tides’ Asian flair. You can feast on a wide array of American cuisine, too.
Do you care for a swim? A swim at Miami beach with white expanse of sand will surely relax you. You will feel the power of the waves engulf your tired body and cast out fatigue.
These are some of the lures of Miami that every Real Estate Broker or Agent capitalize on every sale. Miami Beach homes are pegged at $75,000 to over $15 million – but nobody complains. Buyers know that they are making a good investment on a good catch like a Miami Beach property. There are also shopping centers, storefronts and buildings for sale.
Miami, definitely, is an investor’s dream and a real broker’s prize catch.
Miami Real Estate - Real Estate Press
Friday, 28 April 2006
The statements were delivered by the president of Trump Mortgage, E. J. Ridings. Craig Lane was assigned to oversee the Florida offices. The first target will be South Florida. Ridings announced that this will be in the process in the next 6 months. Trump Mortgage will offer financing products. Ridings also indicated that he already heard small mortgage operations hoping to partner with Trump Mortgage.By Anatoly CordovaThe statements were delivered by the president of Trump Mortgage, E. J. Ridings. Craig Lane was assigned to oversee the Florida offices. The first target will be South Florida. Ridings announced that this will be in the process in the next 6 months. Trump Mortgage will offer financing products. Ridings also indicated that he already heard small mortgage operations hoping to partner with Trump Mortgage.
Miami Real Estate - Real Estate Press
The statements were delivered by the president of Trump Mortgage, E. J. Ridings. Craig Lane was assigned to oversee the Florida offices. The first target will be South Florida. Ridings announced that this will be in the process in the next 6 months. Trump Mortgage will offer financing products. Ridings also indicated that he already heard small mortgage operations hoping to partner with Trump Mortgage.By Anatoly CordovaThe statements were delivered by the president of Trump Mortgage, E. J. Ridings. Craig Lane was assigned to oversee the Florida offices. The first target will be South Florida. Ridings announced that this will be in the process in the next 6 months. Trump Mortgage will offer financing products. Ridings also indicated that he already heard small mortgage operations hoping to partner with Trump Mortgage.
Miami Real Estate - Real Estate Press
The city of Miami lushes with activity as it has been considered a future, albeit hot version of, Manhattan. Currently, Miami is an attractive venue for buyers to take advantage in, due to a high inventory of properties—Miami Real Estate properties for sale are increasing faster than those sold. Hence, property sellers are disposed to negotiate further down because of the many options that await buyers. Deals such as “no money down” along with dropping asking prices is now within reach in the Miami Real Estate market.
The inventory persists in piling up, weakening the position of some sellers who hold variable rate mortgages. Miami continues to be an appealing place for investing although if you intend to sell properties, you ought to be ready not to expect to acquire short-term gains as of the moment. The most positive requirement for those who want to take part in the Miami Real Estate market is the ability to hold property for at least 2-3 years.
Activity has increased in terms of pending residential sales up 118% from April to May in Miami-Dade County, and the rate of price increase has slowed in Miami as the Miami Real Estate market, in general, has been trending towards favorability to buyers. Pending sales numbers indicate the amount of purchases one can expect to close in the next 30-60 days on the average, whereas, closed sales are the consequence of activity initiated 40-60 days before on the average. The number of closed sales was down 17% within the span of April to May, which is indicative of the state of activity from about two months ago. The median sale price, however, is not diminishing as the property values generally remain stable. Meanwhile, the prices are not increasing quite as spectacularly as they were before, but currently still pacing at record rates. So far, 2006 is a strong year and it is predicted that such a trend will carry on throughout the year for sales in the Miami area. As a word of admonishment though, present sellers must focus on planning on their homes which are taking longer to sell.
The next several months are going to be very favorable for buyers because interest rates are still relatively low, and sellers are showing more than usual flexibility in terms of price negotiations because of the decelerating rate of sales of their homes and condos. Prices still remain stable in the single-family home market; condo prices however, point to a small drop in some buildings.
Currently, the supply of condos for sale is still considerably increasing. Look for lower prices in some of the luxury buildings and the vanilla condo conversions where there currently is a lot of inventory and the supply far exceeds the demand right now. In some of the luxury buildings, the sellers were anticipating 25%-50% annual appreciation to continue and had factored that into their selling price. Now reality is forcing these sellers to adjust their prices more drastically than others. Also, look for a number of investors to bail out of the market as they realize they will not be able to flip their properties for the profits they were hoping for. They will want to sell sooner rather than later as their carrying costs are becoming increasingly burdensome.
On the positive side with regards to the selling market, Miami Real Estate resort areas are always in high demand and will continue to attract buyers both foreign and local, investors, and celebrities. Since the dollar is quite weak in Europe, potentially increased investment will come from there as well as from other foreign countries where there is political unrest and unstable economies such as Latin America.
Miami Real Estate - Real Estate Press
The inventory persists in piling up, weakening the position of some sellers who hold variable rate mortgages. Miami continues to be an appealing place for investing although if you intend to sell properties, you ought to be ready not to expect to acquire short-term gains as of the moment. The most positive requirement for those who want to take part in the Miami Real Estate market is the ability to hold property for at least 2-3 years.
Activity has increased in terms of pending residential sales up 118% from April to May in Miami-Dade County, and the rate of price increase has slowed in Miami as the Miami Real Estate market, in general, has been trending towards favorability to buyers. Pending sales numbers indicate the amount of purchases one can expect to close in the next 30-60 days on the average, whereas, closed sales are the consequence of activity initiated 40-60 days before on the average. The number of closed sales was down 17% within the span of April to May, which is indicative of the state of activity from about two months ago. The median sale price, however, is not diminishing as the property values generally remain stable. Meanwhile, the prices are not increasing quite as spectacularly as they were before, but currently still pacing at record rates. So far, 2006 is a strong year and it is predicted that such a trend will carry on throughout the year for sales in the Miami area. As a word of admonishment though, present sellers must focus on planning on their homes which are taking longer to sell.
The next several months are going to be very favorable for buyers because interest rates are still relatively low, and sellers are showing more than usual flexibility in terms of price negotiations because of the decelerating rate of sales of their homes and condos. Prices still remain stable in the single-family home market; condo prices however, point to a small drop in some buildings.
Currently, the supply of condos for sale is still considerably increasing. Look for lower prices in some of the luxury buildings and the vanilla condo conversions where there currently is a lot of inventory and the supply far exceeds the demand right now. In some of the luxury buildings, the sellers were anticipating 25%-50% annual appreciation to continue and had factored that into their selling price. Now reality is forcing these sellers to adjust their prices more drastically than others. Also, look for a number of investors to bail out of the market as they realize they will not be able to flip their properties for the profits they were hoping for. They will want to sell sooner rather than later as their carrying costs are becoming increasingly burdensome.
On the positive side with regards to the selling market, Miami Real Estate resort areas are always in high demand and will continue to attract buyers both foreign and local, investors, and celebrities. Since the dollar is quite weak in Europe, potentially increased investment will come from there as well as from other foreign countries where there is political unrest and unstable economies such as Latin America.
Miami Real Estate - Real Estate Press
Saturday, 07 October 2006
A new poll conducted by Maritz Research for Royal LePage reveals that the odor of a home has a huge impact on emptors’ decisions of buying a home. The idea of “staging” a home to make it look alluring to buyers has become popular during the last decade, as manifested by the proliferation of numerous home staging companies offering advice about how to make the house more attractive to buyers. The poll says that while appearance and cleanliness are significant, 53 per cent of buyers said strong odors such as those that emanate from pets, cigarette smells, and kitchen rubbish had a stronger impact on their impression of a home than overall tidiness and cleanliness, strong wall colors, or an outdated façade and landscaping.
The way you live in your home is not the way to sell your home. Oftentimes, homeowners who smoke or who have pets are so habituated to the odors that they do not notice how repulsive these are to other people, especially buyers. The way to get around this trouble is for sellers to solicit a second opinion, perhaps from their neighbor or from a pre-inspection professional, in order to determine how prospective emptors may see their home.
The Royal LePage poll also revealed that renovations can ameliorate the value of a home, especially in the Sarasota housing market today with such a rising inventory. But not all renovations are created equal. Style and décor are especially important with large renovations, as these features will be relatively more expensive for a buyer to change. Thus, they can be a considerable factor in buying decisions.
The poll also indicate that men were more concerned than women about the décor, with 41 percent of them saying that they would be willing to pay a bounty for an updated décor, as compared to only 30 percent of women saying they would. On the whole, more than a third of prospective emptors said they would pay more for a home with an updated décor.
The poll also shows that 79 percent of buyers said they would be willing to pay more for a home with a renovated kitchen. But when asked if they would still pay a premium if the kitchen was renovated in a style that was not to their taste, less than 50 percent of those who originally said they would pay the bounty were still likely to do so.
Miami Real Estate - Real Estate Press
A new poll conducted by Maritz Research for Royal LePage reveals that the odor of a home has a huge impact on emptors’ decisions of buying a home. The idea of “staging” a home to make it look alluring to buyers has become popular during the last decade, as manifested by the proliferation of numerous home staging companies offering advice about how to make the house more attractive to buyers. The poll says that while appearance and cleanliness are significant, 53 per cent of buyers said strong odors such as those that emanate from pets, cigarette smells, and kitchen rubbish had a stronger impact on their impression of a home than overall tidiness and cleanliness, strong wall colors, or an outdated façade and landscaping.
The way you live in your home is not the way to sell your home. Oftentimes, homeowners who smoke or who have pets are so habituated to the odors that they do not notice how repulsive these are to other people, especially buyers. The way to get around this trouble is for sellers to solicit a second opinion, perhaps from their neighbor or from a pre-inspection professional, in order to determine how prospective emptors may see their home.
The Royal LePage poll also revealed that renovations can ameliorate the value of a home, especially in the Sarasota housing market today with such a rising inventory. But not all renovations are created equal. Style and décor are especially important with large renovations, as these features will be relatively more expensive for a buyer to change. Thus, they can be a considerable factor in buying decisions.
The poll also indicate that men were more concerned than women about the décor, with 41 percent of them saying that they would be willing to pay a bounty for an updated décor, as compared to only 30 percent of women saying they would. On the whole, more than a third of prospective emptors said they would pay more for a home with an updated décor.
The poll also shows that 79 percent of buyers said they would be willing to pay more for a home with a renovated kitchen. But when asked if they would still pay a premium if the kitchen was renovated in a style that was not to their taste, less than 50 percent of those who originally said they would pay the bounty were still likely to do so.
Miami Real Estate - Real Estate Press
Wednesday, 11 October 2006
The recent plunge in the dollar, which has brought the shekel to a five-year high against the US currency, has increased pressure for a drastic change which would move the local real estate market from one that has been historically dollar-denominated to one delineated by the shekel.
The drop in the dollar of nearly 10 percent in recent weeks and months has shaken the real estate market - particularly sales, but also rentals. A survey conducted over the past three months by Levi Itzhak, the editor of Property Prizes magazine, showed that the continuous weakening of the dollar has led to a preference on the part of buyers for the acquisition of second-hand over new or first-hand property. On the back of a weak US currency in recent weeks, only 8% of property purchases were new dwellings compared with 33% in October 2005, when the dollar exchange rate stood at NIS 4.59.
Friedland added that with the weak dollar potential, buyers today need fewer shekels to get to the buying price, and therefore the loan they need to take out could be between 8 to 10% smaller than previously.
Adversely, property sellers are now stubborn about negotiating the asking price, as was once common place.
"There is barely room for price negotiation as sellers have become very hesitant to move prices down," said Friedland. "We hear sellers complain about all the shekels they have already lost, and some even try to increase prices."
Foreign resident buyers, in particular from the US and the UK, have recently shown much interest in buying a second home in Israel, and more so now.
Miami Real Estate - Real Estate Press
The recent plunge in the dollar, which has brought the shekel to a five-year high against the US currency, has increased pressure for a drastic change which would move the local real estate market from one that has been historically dollar-denominated to one delineated by the shekel.
The drop in the dollar of nearly 10 percent in recent weeks and months has shaken the real estate market - particularly sales, but also rentals. A survey conducted over the past three months by Levi Itzhak, the editor of Property Prizes magazine, showed that the continuous weakening of the dollar has led to a preference on the part of buyers for the acquisition of second-hand over new or first-hand property. On the back of a weak US currency in recent weeks, only 8% of property purchases were new dwellings compared with 33% in October 2005, when the dollar exchange rate stood at NIS 4.59.
Friedland added that with the weak dollar potential, buyers today need fewer shekels to get to the buying price, and therefore the loan they need to take out could be between 8 to 10% smaller than previously.
Adversely, property sellers are now stubborn about negotiating the asking price, as was once common place.
"There is barely room for price negotiation as sellers have become very hesitant to move prices down," said Friedland. "We hear sellers complain about all the shekels they have already lost, and some even try to increase prices."
Foreign resident buyers, in particular from the US and the UK, have recently shown much interest in buying a second home in Israel, and more so now.
Miami Real Estate - Real Estate Press
Wednesday, 11 October 2006
Leaders from public schools, Catholic schools and local colleges told a group of real estate agents Tuesday morning to promote the diversity of quality educational opportunities when selling homes to families.
A nine-person education panel met with about 150 real estate agents at Coldwell Banker’s Coventry office to give them information about area public and private schools and colleges, and clear up any misconceptions they have about the area’s education.
The panel agreed when Steve Yager, superintendent of Northwest Allen County Schools, said real estate agents should emphasize the variety of good schools and universities when speaking to parents. Fort Wayne offers good public schools, Catholic schools, private schools, a public university, faith-based colleges and private colleges, he said.
Members of the panel presented what they thought were the best points of their institutions and discussed school safety and property taxes among other issues. The panel also debated whether there was a brain drain in Fort Wayne. A brain drain is when young and talented people leave an area for a more prosperous region.
Robinson and Yager were joined by Brian Smith, superintendent of Southwest Allen County Schools; Michael Wartell, chancellor of Indiana University-Purdue University Fort Wayne; Stephen Kempinger, superintendent for the Fort Wayne-South Bend Area Catholic Diocese; and representatives from the University of Saint Francis, Tri-State University, Indiana Tech and Huntington University.
One of the first questions posed to the panel involved school safety, in light of recent school shootings including a deadly one at a Pennsylvania Amish schoolhouse.
Smith said it is most important for school leaders to work with teachers, students and parents and encourage them to relay any rumors they might hear about possible violent attacks. Yager said sometimes there isn’t much more school officials can do, other than keep their ears open and hire security experts.
John Bellio, president of sales for Coldwell Banker, asked the panel about property taxes and how real estate agents should discuss schools’ involvement in raising money. Smith said he wished the state legislature would find alternative ways to finance schools such as revenue from a state sales or income tax.
Robinson, on the other hand, said Fort Wayne Community Schools needs property taxes to keep up the school buildings in order to preserve property values around the city.
In regard to brain drain, Robinson said residents need to stop dumbing the city down and recognize the positive aspects of living in Fort Wayne.
People also need to recognize the talented and intelligent individuals who remain and realize that those who left to work and live in other cities were going to move anyway, despite any educational opportunities or lack thereof, she said.
Miami Real Estate - Real Estate Press
Leaders from public schools, Catholic schools and local colleges told a group of real estate agents Tuesday morning to promote the diversity of quality educational opportunities when selling homes to families.
A nine-person education panel met with about 150 real estate agents at Coldwell Banker’s Coventry office to give them information about area public and private schools and colleges, and clear up any misconceptions they have about the area’s education.
The panel agreed when Steve Yager, superintendent of Northwest Allen County Schools, said real estate agents should emphasize the variety of good schools and universities when speaking to parents. Fort Wayne offers good public schools, Catholic schools, private schools, a public university, faith-based colleges and private colleges, he said.
Members of the panel presented what they thought were the best points of their institutions and discussed school safety and property taxes among other issues. The panel also debated whether there was a brain drain in Fort Wayne. A brain drain is when young and talented people leave an area for a more prosperous region.
Robinson and Yager were joined by Brian Smith, superintendent of Southwest Allen County Schools; Michael Wartell, chancellor of Indiana University-Purdue University Fort Wayne; Stephen Kempinger, superintendent for the Fort Wayne-South Bend Area Catholic Diocese; and representatives from the University of Saint Francis, Tri-State University, Indiana Tech and Huntington University.
One of the first questions posed to the panel involved school safety, in light of recent school shootings including a deadly one at a Pennsylvania Amish schoolhouse.
Smith said it is most important for school leaders to work with teachers, students and parents and encourage them to relay any rumors they might hear about possible violent attacks. Yager said sometimes there isn’t much more school officials can do, other than keep their ears open and hire security experts.
John Bellio, president of sales for Coldwell Banker, asked the panel about property taxes and how real estate agents should discuss schools’ involvement in raising money. Smith said he wished the state legislature would find alternative ways to finance schools such as revenue from a state sales or income tax.
Robinson, on the other hand, said Fort Wayne Community Schools needs property taxes to keep up the school buildings in order to preserve property values around the city.
In regard to brain drain, Robinson said residents need to stop dumbing the city down and recognize the positive aspects of living in Fort Wayne.
People also need to recognize the talented and intelligent individuals who remain and realize that those who left to work and live in other cities were going to move anyway, despite any educational opportunities or lack thereof, she said.
Miami Real Estate - Real Estate Press
Thursday, 12 October 2006
While many fund managers are promoting the advantages of investing in developing real estate markets in regions such as Asia, chief executives at Macquarie feel the US is still an attractive market for investors due to factors like cultural similarities to Australia as well as recent market trends.
In particular, trends affecting both the US discount commercial convenience real estate and the US distribution warehouse sectors have made them particularly attractive for investors looking to earn a steady income stream from rents.
In regard to discount commercial convenience real estate the trend has been a move by consumers away from traditional retail department stores.
In terms of the distribution warehouse space, the overriding trend has been for the storing of inventory in fewer more centralised hubs to make distribution more efficient.
The US being a big country has certain hubs and we’ve seen national distributors reduce the locations in which they hold stock down from say 20 locations to maybe five.
It’s all about getting the stock to the hub and getting it out more quickly. What that’s meant is bigger warehouses with the systems within the warehouses being more sophisticated.
US fund managers and Macquarie business partners, DDR and ProLogis, specialise in investing in discount commercial convenience real estate and distribution warehouses respectively.
Australian investors can only gain access to these managers’ core investment activities through two listed property trusts, the Macquarie DDR Trust and the Macquarie ProLogis Trust.
Miami Real Estate - Real Estate Press
While many fund managers are promoting the advantages of investing in developing real estate markets in regions such as Asia, chief executives at Macquarie feel the US is still an attractive market for investors due to factors like cultural similarities to Australia as well as recent market trends.
In particular, trends affecting both the US discount commercial convenience real estate and the US distribution warehouse sectors have made them particularly attractive for investors looking to earn a steady income stream from rents.
In regard to discount commercial convenience real estate the trend has been a move by consumers away from traditional retail department stores.
In terms of the distribution warehouse space, the overriding trend has been for the storing of inventory in fewer more centralised hubs to make distribution more efficient.
The US being a big country has certain hubs and we’ve seen national distributors reduce the locations in which they hold stock down from say 20 locations to maybe five.
It’s all about getting the stock to the hub and getting it out more quickly. What that’s meant is bigger warehouses with the systems within the warehouses being more sophisticated.
US fund managers and Macquarie business partners, DDR and ProLogis, specialise in investing in discount commercial convenience real estate and distribution warehouses respectively.
Australian investors can only gain access to these managers’ core investment activities through two listed property trusts, the Macquarie DDR Trust and the Macquarie ProLogis Trust.
Miami Real Estate - Real Estate Press
Thursday, 12 October 2006
Real estate professionals today find themselves on a whole new playing field. The 2006 industry bears little resemblance to, say, its 1996 incarnation. Of course, we all know things have changed. But despite that knowledge, many are clinging stubbornly to the old rules of the game. Significant mistake, says real estate advisor Michael Staver. If you let yourself get bogged down in urgent activity that is not that important instead of performing what he calls high-gain activities—you're living on borrowed time.
Today's broker needs to function not as a real estate operator but as CEO of a multimillion-dollar corporation. The unpleasant truth is that in times of massive change, those who can't keep up are likely to get swept away.
The following are reasons why brokers should focus on the profession:
1. Downward pressure on sales commissions. Consumers are no longer willing to pay agent commissions—at least not on the same level that they once were. "Companies and their agents must clearly understand and articulate their specific value as it relates to the customer," asserts Staver. "It is the customer's perspective that matters—not yours. The resulting pressure from consumers has brought to the table a need to evaluate how we price a listing and then how we provide for the customer a clear understanding of why it costs X to sell their house. If a clear rationale can't be established, then perhaps the seller is being overcharged."
2. A consumer-centric marketplace. Once upon a time, real estate was a provider-driven market. Customers listened to their agent and signed on the dotted line. Today, customers control the transaction. Staver attributes this sea change to the technologically driven flow of information and sense of consumer empowerment that spans many different arenas. "Providers no longer have a monopoly on information," he says. "Think about healthcare. Everyone on the street can name two or three antidepressants, so doctors have lost much of their authority. And though many real estate professionals tend to cling to the belief that they're in charge, it's a delusion. The job has almost nothing to do with selling a house fast; it has everything to do with understanding the hearts and minds of the consumer."
3. Emergence of alternate business models. Your competitors are no longer limited to other real estate companies like you. Completely new horse-of-a-different-color businesses are springing up to give consumers the information and experience they want and need. And the information-saturated marketplace has forced brokers to reevaluate their strategies. After all, any Mom & Pop company can get on MLS, get every listing, and post it on their Web site. "Consumers think, 'Well, if you won't tell me what I want to know, and provide a buying or selling experience the way I want it, perhaps the brokerage across the street will,'" notes Staver. "It's just a different world now."
4. An underdeveloped leadership talent pool. The robust real estate market, combined with the tidal wave of change that has swept over our industry in the past decade, has created a whole generation of managers out of former agents. And of course, the harsh truth is that no matter how brilliant and successful an agent might be as an agent, she is not automatically a great manager. "Real estate brokers are finally realizing that leadership skills don't magically happen," says Staver. "Development firms like mine are working with brokers to increase leadership competency and bring on board emerging leaders. The industry is in a massive learning curve as people work to learn vital new skills."
5. Our current market correction. Let's face it: for the past six years or so the real estate industry has been wallowing in champagne and caviar. A robust market has a way of hiding a multitude of sins. And now that we're coming to the end of our economic power surge—and Staver insists that it's a normalization, not a downturn—the receding tide is exposing some disappointing realities. "Homes that would have sold in days might be taking weeks or even months to sell, and people aren't realizing the exorbitant profits they were a few years ago," he says. "Many homes never were worth their selling price, but you know, everyone got accustomed to the fever pitch and normal seems slow.
Consumers are anxious, which makes agents anxious, which makes brokers anxious. We all need to take a deep breath and adjust our expectations. And fundamentally, we need to sharpen and intensify our focus on high-gain activities."
Real estate professionals must break out of their comfort zones and start devoting their time and brain-power to high-gain activities: articulating vision and values, creating a framework for exceptional client experiences, increasing the value of assets under their control, creating a high-performance culture, and finding and developing world-class talent. (NOTE: See tipsheet below for more information on each.)
Tips to remember:
1. Articulate your vision and values. What does your company stand for? At the end of the day, what matters most? Integrity? Excellent service? Making lots and lots of money at all costs? Every company stands for something and leaders must make their values and vision absolutely clear to their followers. After all, people do not function without a purpose. If you are not keeping your company's vision and values in front of them at all times, they can't know what to align their behaviors with. Don't be afraid to be passionate. People will follow you into the depths of hell when you can make them believe in where you're headed. As Staver likes to remind his clients, "Martin Luther King, Jr. didn't say, 'I have a hunch.'"
2. Create a framework for an exceptional client experience. Most organizations are structured to serve themselves, not the customer. But to be truly successful in the Information Age, you must design an experience focused on the consumer experience as articulated by the consumer. This goes much deeper than "customer service," by the way. You must structure your company around what the consumer really wants, not what you want her to want.
3. Increase the value of assets under your control. If you automatically think "hard" assets like business equipment, you're on the wrong wavelength. Your most valuable assets are your human assets—despite what your accounting department may believe. (Did you know that on most balance sheets a desk appears as an asset and a person appears as a liability?) How do you increase the value of your human assets? Commit to developing them on a personal and professional level. Help them maximize their strengths to the benefit of your company. "In most organizations, the most successful salesperson becomes a sales manager," points out Staver. "But being great at selling houses or anything else doesn't mean you're great at leading. Smart companies capitalize on the natural abilities of their people and offer the training they need to truly thrive."
4. Create a high-performance culture. This high-gain activity can be summed up in three simple steps: 1) Articulate your expectations to your people (this goes back to our first tip) . . . 2) Make sure there's a system in place to give people what they need to achieve those expectations . . . and 3) Be certain you're holding them accountable for achieving expectations. It's that simple.
5. Find and develop world-class talent. It's easy enough to focus on talent when you have a job opening and need someone pronto. Problem is, by then it's too late. Constantly be looking for and wooing talented people, even if you have no place to put them right now. Do what you have to do.
Miami FL Real EState - Real Estate Press
Real estate professionals today find themselves on a whole new playing field. The 2006 industry bears little resemblance to, say, its 1996 incarnation. Of course, we all know things have changed. But despite that knowledge, many are clinging stubbornly to the old rules of the game. Significant mistake, says real estate advisor Michael Staver. If you let yourself get bogged down in urgent activity that is not that important instead of performing what he calls high-gain activities—you're living on borrowed time.
Today's broker needs to function not as a real estate operator but as CEO of a multimillion-dollar corporation. The unpleasant truth is that in times of massive change, those who can't keep up are likely to get swept away.
The following are reasons why brokers should focus on the profession:
1. Downward pressure on sales commissions. Consumers are no longer willing to pay agent commissions—at least not on the same level that they once were. "Companies and their agents must clearly understand and articulate their specific value as it relates to the customer," asserts Staver. "It is the customer's perspective that matters—not yours. The resulting pressure from consumers has brought to the table a need to evaluate how we price a listing and then how we provide for the customer a clear understanding of why it costs X to sell their house. If a clear rationale can't be established, then perhaps the seller is being overcharged."
2. A consumer-centric marketplace. Once upon a time, real estate was a provider-driven market. Customers listened to their agent and signed on the dotted line. Today, customers control the transaction. Staver attributes this sea change to the technologically driven flow of information and sense of consumer empowerment that spans many different arenas. "Providers no longer have a monopoly on information," he says. "Think about healthcare. Everyone on the street can name two or three antidepressants, so doctors have lost much of their authority. And though many real estate professionals tend to cling to the belief that they're in charge, it's a delusion. The job has almost nothing to do with selling a house fast; it has everything to do with understanding the hearts and minds of the consumer."
3. Emergence of alternate business models. Your competitors are no longer limited to other real estate companies like you. Completely new horse-of-a-different-color businesses are springing up to give consumers the information and experience they want and need. And the information-saturated marketplace has forced brokers to reevaluate their strategies. After all, any Mom & Pop company can get on MLS, get every listing, and post it on their Web site. "Consumers think, 'Well, if you won't tell me what I want to know, and provide a buying or selling experience the way I want it, perhaps the brokerage across the street will,'" notes Staver. "It's just a different world now."
4. An underdeveloped leadership talent pool. The robust real estate market, combined with the tidal wave of change that has swept over our industry in the past decade, has created a whole generation of managers out of former agents. And of course, the harsh truth is that no matter how brilliant and successful an agent might be as an agent, she is not automatically a great manager. "Real estate brokers are finally realizing that leadership skills don't magically happen," says Staver. "Development firms like mine are working with brokers to increase leadership competency and bring on board emerging leaders. The industry is in a massive learning curve as people work to learn vital new skills."
5. Our current market correction. Let's face it: for the past six years or so the real estate industry has been wallowing in champagne and caviar. A robust market has a way of hiding a multitude of sins. And now that we're coming to the end of our economic power surge—and Staver insists that it's a normalization, not a downturn—the receding tide is exposing some disappointing realities. "Homes that would have sold in days might be taking weeks or even months to sell, and people aren't realizing the exorbitant profits they were a few years ago," he says. "Many homes never were worth their selling price, but you know, everyone got accustomed to the fever pitch and normal seems slow.
Consumers are anxious, which makes agents anxious, which makes brokers anxious. We all need to take a deep breath and adjust our expectations. And fundamentally, we need to sharpen and intensify our focus on high-gain activities."
Real estate professionals must break out of their comfort zones and start devoting their time and brain-power to high-gain activities: articulating vision and values, creating a framework for exceptional client experiences, increasing the value of assets under their control, creating a high-performance culture, and finding and developing world-class talent. (NOTE: See tipsheet below for more information on each.)
Tips to remember:
1. Articulate your vision and values. What does your company stand for? At the end of the day, what matters most? Integrity? Excellent service? Making lots and lots of money at all costs? Every company stands for something and leaders must make their values and vision absolutely clear to their followers. After all, people do not function without a purpose. If you are not keeping your company's vision and values in front of them at all times, they can't know what to align their behaviors with. Don't be afraid to be passionate. People will follow you into the depths of hell when you can make them believe in where you're headed. As Staver likes to remind his clients, "Martin Luther King, Jr. didn't say, 'I have a hunch.'"
2. Create a framework for an exceptional client experience. Most organizations are structured to serve themselves, not the customer. But to be truly successful in the Information Age, you must design an experience focused on the consumer experience as articulated by the consumer. This goes much deeper than "customer service," by the way. You must structure your company around what the consumer really wants, not what you want her to want.
3. Increase the value of assets under your control. If you automatically think "hard" assets like business equipment, you're on the wrong wavelength. Your most valuable assets are your human assets—despite what your accounting department may believe. (Did you know that on most balance sheets a desk appears as an asset and a person appears as a liability?) How do you increase the value of your human assets? Commit to developing them on a personal and professional level. Help them maximize their strengths to the benefit of your company. "In most organizations, the most successful salesperson becomes a sales manager," points out Staver. "But being great at selling houses or anything else doesn't mean you're great at leading. Smart companies capitalize on the natural abilities of their people and offer the training they need to truly thrive."
4. Create a high-performance culture. This high-gain activity can be summed up in three simple steps: 1) Articulate your expectations to your people (this goes back to our first tip) . . . 2) Make sure there's a system in place to give people what they need to achieve those expectations . . . and 3) Be certain you're holding them accountable for achieving expectations. It's that simple.
5. Find and develop world-class talent. It's easy enough to focus on talent when you have a job opening and need someone pronto. Problem is, by then it's too late. Constantly be looking for and wooing talented people, even if you have no place to put them right now. Do what you have to do.
Miami FL Real EState - Real Estate Press
Wednesday, 11 October 2006
Three memoranda of understanding on real estate projects were signed between project owners and foreign investors at Viet Nam Investment Conference 2006 in Ha Noi yesterday.
Entitled "Riding on the High Growth of Viet Nam", the conference, organised by the International Investment and Urban Development Joint Stock Company (IDJ), introduced 68 investment projects including office buildings, high-end apartments, resorts, industrial zones and urban zones.
Delivering the opening speech at the conference, Deputy Minister of Planning and Investment (MPI) Cao Viet Sinh said that the promotion of foreign investment in Viet Nam - combined with improvements to the market economy mechanism and the legal framework for investment and business - played a vital role in Viet Nam’s efforts to advance its international integration.
IDJ Director Tran Trong Hieu stressed that the conference’s purpose was to encourage foreign investors and overseas Vietnamese to further invest in Viet Nam, especially in the real estate sector.
Hieu added that the real estate industry was drawing a lot of interest from foreign investors, while local project owners were short of cash to develop.
This was a major opportunity for enterprises to introduce their projects to nearly 200 domestic investors, as well as foreign investors from the US, Singapore, Hong Kong, Taiwan, South Korea and Malaysia, he said.
For investors, the conference was a chance to not only choose projects to invest in, but also to receive the latest information on Viet Nam’s investment policies.
At the conference, Pham Manh Dung, Director of the MPI’s Legal Department, summarised new regulations in the Investment Law that applied to foreign investors.
Ngai KT Roi, General Director of Malaysia’s Prima Line Horizon, said investors had been awaiting the changes in Viet Nam’s Investment Law for a long time, and that with these changes, investment flow into Viet Nam would be likely to increase.
The most prominent change is that the Investment Law has freed up access to the investment market, allowing investors access to all economic sectors. However, investment restrictions on 14 economic sectors still apply to foreign investors, which are consistent with WTO commitments and bilateral agreements. Apart from these 14 areas, foreign investors can make investments without legislative restrictions.
The new law has expanded investment forms available to foreign investors to include limited liability, partnership, joint-stock or private companies.
The previous Foreign Investment Law allowed foreign investment to take only three forms, namely wholly foreign-invested enterprises, joint ventures, and Business Co-operation Contract (BCC).
Requirements on minimum capital for a project and the ratio between legal capital and investment capital have been removed so that investors have more autonomy in mobilising capital.
In addition, trade measures and investment-related barriers have also been removed to comply with international agreements on opening the investment market that Viet Nam has joined.
The Investment Law guarantees that investors’ assets will not be appropriated and confiscated. Investors’ profit remittance and intellectual property rights are also assured.
Administrative procedures have been reformed to create more favourable conditions for investors. For example, in line with the increased decentralisation process, local authorities are now permitted to grant licences to all investment projects regardless of their scale and capital.
Under the law’s new regulations, investment incentives are decided on the basis of the sectors and locations of the investments, and are applicable to both domestic and foreign investors without any discrimination.
Miami FL Real Estate - Real Estate Press
Three memoranda of understanding on real estate projects were signed between project owners and foreign investors at Viet Nam Investment Conference 2006 in Ha Noi yesterday.
Entitled "Riding on the High Growth of Viet Nam", the conference, organised by the International Investment and Urban Development Joint Stock Company (IDJ), introduced 68 investment projects including office buildings, high-end apartments, resorts, industrial zones and urban zones.
Delivering the opening speech at the conference, Deputy Minister of Planning and Investment (MPI) Cao Viet Sinh said that the promotion of foreign investment in Viet Nam - combined with improvements to the market economy mechanism and the legal framework for investment and business - played a vital role in Viet Nam’s efforts to advance its international integration.
IDJ Director Tran Trong Hieu stressed that the conference’s purpose was to encourage foreign investors and overseas Vietnamese to further invest in Viet Nam, especially in the real estate sector.
Hieu added that the real estate industry was drawing a lot of interest from foreign investors, while local project owners were short of cash to develop.
This was a major opportunity for enterprises to introduce their projects to nearly 200 domestic investors, as well as foreign investors from the US, Singapore, Hong Kong, Taiwan, South Korea and Malaysia, he said.
For investors, the conference was a chance to not only choose projects to invest in, but also to receive the latest information on Viet Nam’s investment policies.
At the conference, Pham Manh Dung, Director of the MPI’s Legal Department, summarised new regulations in the Investment Law that applied to foreign investors.
Ngai KT Roi, General Director of Malaysia’s Prima Line Horizon, said investors had been awaiting the changes in Viet Nam’s Investment Law for a long time, and that with these changes, investment flow into Viet Nam would be likely to increase.
The most prominent change is that the Investment Law has freed up access to the investment market, allowing investors access to all economic sectors. However, investment restrictions on 14 economic sectors still apply to foreign investors, which are consistent with WTO commitments and bilateral agreements. Apart from these 14 areas, foreign investors can make investments without legislative restrictions.
The new law has expanded investment forms available to foreign investors to include limited liability, partnership, joint-stock or private companies.
The previous Foreign Investment Law allowed foreign investment to take only three forms, namely wholly foreign-invested enterprises, joint ventures, and Business Co-operation Contract (BCC).
Requirements on minimum capital for a project and the ratio between legal capital and investment capital have been removed so that investors have more autonomy in mobilising capital.
In addition, trade measures and investment-related barriers have also been removed to comply with international agreements on opening the investment market that Viet Nam has joined.
The Investment Law guarantees that investors’ assets will not be appropriated and confiscated. Investors’ profit remittance and intellectual property rights are also assured.
Administrative procedures have been reformed to create more favourable conditions for investors. For example, in line with the increased decentralisation process, local authorities are now permitted to grant licences to all investment projects regardless of their scale and capital.
Under the law’s new regulations, investment incentives are decided on the basis of the sectors and locations of the investments, and are applicable to both domestic and foreign investors without any discrimination.
Miami FL Real Estate - Real Estate Press
Saturday, 07 October 2006
A new poll conducted by Maritz Research for Royal LePage reveals that the odor of a home has a huge impact on emptors’ decisions of buying a home. The idea of “staging” a home to make it look alluring to buyers has become popular during the last decade, as manifested by the proliferation of numerous home staging companies offering advice about how to make the house more attractive to buyers. The poll says that while appearance and cleanliness are significant, 53 per cent of buyers said strong odors such as those that emanate from pets, cigarette smells, and kitchen rubbish had a stronger impact on their impression of a home than overall tidiness and cleanliness, strong wall colors, or an outdated façade and landscaping.
The way you live in your home is not the way to sell your home. Oftentimes, homeowners who smoke or who have pets are so habituated to the odors that they do not notice how repulsive these are to other people, especially buyers. The way to get around this trouble is for sellers to solicit a second opinion, perhaps from their neighbor or from a pre-inspection professional, in order to determine how prospective emptors may see their home.
The Royal LePage poll also revealed that renovations can ameliorate the value of a home, especially in the Sarasota housing market today with such a rising inventory. But not all renovations are created equal. Style and décor are especially important with large renovations, as these features will be relatively more expensive for a buyer to change. Thus, they can be a considerable factor in buying decisions.
The poll also indicate that men were more concerned than women about the décor, with 41 percent of them saying that they would be willing to pay a bounty for an updated décor, as compared to only 30 percent of women saying they would. On the whole, more than a third of prospective emptors said they would pay more for a home with an updated décor.
The poll also shows that 79 percent of buyers said they would be willing to pay more for a home with a renovated kitchen. But when asked if they would still pay a premium if the kitchen was renovated in a style that was not to their taste, less than 50 percent of those who originally said they would pay the bounty were still likely to do so.
Miami FL Real Estate - Real Estate Press
A new poll conducted by Maritz Research for Royal LePage reveals that the odor of a home has a huge impact on emptors’ decisions of buying a home. The idea of “staging” a home to make it look alluring to buyers has become popular during the last decade, as manifested by the proliferation of numerous home staging companies offering advice about how to make the house more attractive to buyers. The poll says that while appearance and cleanliness are significant, 53 per cent of buyers said strong odors such as those that emanate from pets, cigarette smells, and kitchen rubbish had a stronger impact on their impression of a home than overall tidiness and cleanliness, strong wall colors, or an outdated façade and landscaping.
The way you live in your home is not the way to sell your home. Oftentimes, homeowners who smoke or who have pets are so habituated to the odors that they do not notice how repulsive these are to other people, especially buyers. The way to get around this trouble is for sellers to solicit a second opinion, perhaps from their neighbor or from a pre-inspection professional, in order to determine how prospective emptors may see their home.
The Royal LePage poll also revealed that renovations can ameliorate the value of a home, especially in the Sarasota housing market today with such a rising inventory. But not all renovations are created equal. Style and décor are especially important with large renovations, as these features will be relatively more expensive for a buyer to change. Thus, they can be a considerable factor in buying decisions.
The poll also indicate that men were more concerned than women about the décor, with 41 percent of them saying that they would be willing to pay a bounty for an updated décor, as compared to only 30 percent of women saying they would. On the whole, more than a third of prospective emptors said they would pay more for a home with an updated décor.
The poll also shows that 79 percent of buyers said they would be willing to pay more for a home with a renovated kitchen. But when asked if they would still pay a premium if the kitchen was renovated in a style that was not to their taste, less than 50 percent of those who originally said they would pay the bounty were still likely to do so.
Miami FL Real Estate - Real Estate Press
Saturday, 07 October 2006
When buyers gain more leverage in the Miami housing market, sellers must think out of the box to attract buyers to their homes, then to fixate on their asking price. This article discusses 8 possible ways for Miami housing market sellers to get a home sold at least a little closer than what you might have gotten otherwise, if not exactly at your asking price.
First is allocating a decorating allowance. If your décor looks quite old and out of trend, then allot some cash for upgrades, new carpet and a paint job. With good bidding on the job, you may be able to keep your price, while giving the buyer his or her wants. You can even make some money on the backside by not dropping your asking price. Buyers in the Miami housing market would typically love $20,000 to spend the way they want on decorating.
Second is to consider your mortgage payments for your next move. Since you as a seller would also be moving into a new house after the current one has been sold, it is advisable to consider mortgage payments. On a $300,000 mortgage at 6 percent interest, the principal and interest payment is $1,798.65 monthly. Over three months, this rate of payment would translate to a savings of $5,395.95; over 6 months, it would be more than $10,791.90.
Thirdly, for some buyers, purchasing a home in Miami is all about the monthly amortization. A strategy that has been proven to be quite effective is inveigling buyers into your price with an offer to buy-down their interest rates by means of paying points. If buyers can get the interest rate low enough, they will be able to bear a higher mortgage for a lower monthly payment because of your point money left at the table. This tactic can be more aptly characterized as "selling the deal" rather than selling the house.
Fourth is another “selling the deal”-kind of tactic—offering a “buy house now, get a Caribbean Cruise later” sort of incentive furtherance. Sometimes, a buyer might get cash back at the settlement table, but wouldn't dare spend it in a luxurious way. Offer a cruise, an expensive spa weekend, airline tickets to some exotic travel places around the world, or some other out of the ordinary travel package to lure them. When you consider the inventory has more than doubled in the Miami housing market, chances are substantial that the only thing distinguishing one house from another may be the cruise line.
Fifth is to entice buyers by offering a free media room. The prevalence of at-home, non-sticky, low-ticket price media rooms is the primary reason that movie ticket sales have plummeted in recent years. During the recent Christmas holidays, some media rooms packed with big screen monitor and surround systems were selling for less than $5,000. This one investment alone could be the one beguiling factor that a buyer needs in order to sign the bottom line.
Sixth, another selling tactic would be offering year-long home owner association fees in condos. Relieving buyers of those expensive dues is considered as a more direct and practical benefit to them. Depending of course on the community, these fees could top out to more than $500 every month, which translates to $6,000 for the first year. Offering this benefit could definitely entice the cash-poor buyer.
Seventh is to offer seller financing. This is an option quite overlooked by a number of sellers because either they or their realtor simply just do not bother about it too much. Seller financing can take various forms—as a first trust, second trust or even 100 percent financing for the whole house. For the seller who can swing a first-trust mortgage, this can actually become quite the money-spinner. For instance, a $100,000 mortgage offered at 7 percent over 5 years with interest-only payments followed by a balloon payment of $100,000 would actually translate to net earning of $135,000 to the seller over the life of the loan—not that bad for a return of investment.
Lastly, pay off bills. Some loan plans will enable sellers to redeem credit cards, auto loans, and the ilk, for the buyer. It could spell the difference between qualifying for the mortgage and having to buy a smaller, less expensive home. Over again, hold on to your asking price and offer to pay off debt for the buyer.
These tips may be quite fancy, but there is absolutely no harm in giving at least one of these a try. In an imminent buyer’s market like the one in right now, alternatives for selling a home at the price you ask are in short supply.
Miami FL Real Estate - Real Estate Portal
When buyers gain more leverage in the Miami housing market, sellers must think out of the box to attract buyers to their homes, then to fixate on their asking price. This article discusses 8 possible ways for Miami housing market sellers to get a home sold at least a little closer than what you might have gotten otherwise, if not exactly at your asking price.
First is allocating a decorating allowance. If your décor looks quite old and out of trend, then allot some cash for upgrades, new carpet and a paint job. With good bidding on the job, you may be able to keep your price, while giving the buyer his or her wants. You can even make some money on the backside by not dropping your asking price. Buyers in the Miami housing market would typically love $20,000 to spend the way they want on decorating.
Second is to consider your mortgage payments for your next move. Since you as a seller would also be moving into a new house after the current one has been sold, it is advisable to consider mortgage payments. On a $300,000 mortgage at 6 percent interest, the principal and interest payment is $1,798.65 monthly. Over three months, this rate of payment would translate to a savings of $5,395.95; over 6 months, it would be more than $10,791.90.
Thirdly, for some buyers, purchasing a home in Miami is all about the monthly amortization. A strategy that has been proven to be quite effective is inveigling buyers into your price with an offer to buy-down their interest rates by means of paying points. If buyers can get the interest rate low enough, they will be able to bear a higher mortgage for a lower monthly payment because of your point money left at the table. This tactic can be more aptly characterized as "selling the deal" rather than selling the house.
Fourth is another “selling the deal”-kind of tactic—offering a “buy house now, get a Caribbean Cruise later” sort of incentive furtherance. Sometimes, a buyer might get cash back at the settlement table, but wouldn't dare spend it in a luxurious way. Offer a cruise, an expensive spa weekend, airline tickets to some exotic travel places around the world, or some other out of the ordinary travel package to lure them. When you consider the inventory has more than doubled in the Miami housing market, chances are substantial that the only thing distinguishing one house from another may be the cruise line.
Fifth is to entice buyers by offering a free media room. The prevalence of at-home, non-sticky, low-ticket price media rooms is the primary reason that movie ticket sales have plummeted in recent years. During the recent Christmas holidays, some media rooms packed with big screen monitor and surround systems were selling for less than $5,000. This one investment alone could be the one beguiling factor that a buyer needs in order to sign the bottom line.
Sixth, another selling tactic would be offering year-long home owner association fees in condos. Relieving buyers of those expensive dues is considered as a more direct and practical benefit to them. Depending of course on the community, these fees could top out to more than $500 every month, which translates to $6,000 for the first year. Offering this benefit could definitely entice the cash-poor buyer.
Seventh is to offer seller financing. This is an option quite overlooked by a number of sellers because either they or their realtor simply just do not bother about it too much. Seller financing can take various forms—as a first trust, second trust or even 100 percent financing for the whole house. For the seller who can swing a first-trust mortgage, this can actually become quite the money-spinner. For instance, a $100,000 mortgage offered at 7 percent over 5 years with interest-only payments followed by a balloon payment of $100,000 would actually translate to net earning of $135,000 to the seller over the life of the loan—not that bad for a return of investment.
Lastly, pay off bills. Some loan plans will enable sellers to redeem credit cards, auto loans, and the ilk, for the buyer. It could spell the difference between qualifying for the mortgage and having to buy a smaller, less expensive home. Over again, hold on to your asking price and offer to pay off debt for the buyer.
These tips may be quite fancy, but there is absolutely no harm in giving at least one of these a try. In an imminent buyer’s market like the one in right now, alternatives for selling a home at the price you ask are in short supply.
Miami FL Real Estate - Real Estate Portal
Tuesday, 26 September 2006
Shares of large Internet companies together with Yahoo Inc. felt under pressure amid concerns about its advertising exposure to the softening real-estate market.
An RBC Capital Markets research report on the topic seemed to dampen on any upside gain Yahoo had hoped to achieve from announcing its social-networking feature, called del.icio.us, has tripled its audience size to more than 1 million during the past nine months.
Also hanging over Tuesday's trading were a bevy of new reports about 2006 online ad spending from the day before. While some, like eMarketer Inc.'s, revised annual projections downward, the three reports are generally upbeat and expecting another record year.
The Dow Jones Internet Index will post less-than-stellar third-quarter financials. William Blair & Co. estimated the number of eBay sales listings during the quarter, a key measure of its health, is on pace to grow by about 30% from the year ago period, which is 2 percentage points less than most analysts expected. Shares of eBay were up about 3.5%. Google Inc. shares were trading up, fractionally, after announcing its controversial book search project will now include millions of books from Complutense University in Madrid, marking the first non-English speaking collection to be scanned.
Among other stocks, online advertising and marketing firm 24/7 Real Media Inc. shed 2.4% early following a warning from analysts at Jefferies & Co. to expect volatility in the shares because its convertible debt was maturing Tuesday.
Miam FL Real Estate - Real Estate Press
Shares of large Internet companies together with Yahoo Inc. felt under pressure amid concerns about its advertising exposure to the softening real-estate market.
An RBC Capital Markets research report on the topic seemed to dampen on any upside gain Yahoo had hoped to achieve from announcing its social-networking feature, called del.icio.us, has tripled its audience size to more than 1 million during the past nine months.
Also hanging over Tuesday's trading were a bevy of new reports about 2006 online ad spending from the day before. While some, like eMarketer Inc.'s, revised annual projections downward, the three reports are generally upbeat and expecting another record year.
The Dow Jones Internet Index will post less-than-stellar third-quarter financials. William Blair & Co. estimated the number of eBay sales listings during the quarter, a key measure of its health, is on pace to grow by about 30% from the year ago period, which is 2 percentage points less than most analysts expected. Shares of eBay were up about 3.5%. Google Inc. shares were trading up, fractionally, after announcing its controversial book search project will now include millions of books from Complutense University in Madrid, marking the first non-English speaking collection to be scanned.
Among other stocks, online advertising and marketing firm 24/7 Real Media Inc. shed 2.4% early following a warning from analysts at Jefferies & Co. to expect volatility in the shares because its convertible debt was maturing Tuesday.
Miam FL Real Estate - Real Estate Press
Wednesday, 27 September 2006
Falling home prices is spreading to every corner of the nation's most populated state, hot on the heels of falling home prices that have plagued California for the last year.
Like the rest of the nation, declining home sales signaled the beginning of the end for a boom that spawned unsustainable home price appreciation and, ultimately, too many homes consumers couldn't afford.
In California, the boom began to wane at a time when interest rates were rising, incomes and job growth had failed to keep pace with home price inflation, rising energy costs were squeezing wallets and more affordable rental housing was coming on line.
Nationwide, home prices dropped on a year-to-year basis for the first time in more than a decade when the median price of existing homes slipped nearly 2 percent in August, compared to August 2005, according to the National Association of Realtors.
California, statewide, coming off a record year (2005) in sales and prices, is on track to follow suit.
In August, California's single-family home sales count came in 30 percent short of last August's and condo sales were down more 31.1 percent. The single-family median home price rose only 1.6 percent as the median condo price barely budged up 0.1 percent, according to the California Association of Realtors.
According to CAR, existing home sales have been declining in California every month since October 2005, months before prices even began to slip in select markets. Year-to-year home sales were down 17.6 percent in December 2005, but home prices were still rising at the rate of 5.6 percent.
It wasn't until early 2006 when declining sales began to pull prices down, first in the posh Santa Barbara coastal area, in the less populated hinterlands at the northern end of the state and in between, in portions of wine country north of the San Francisco Bay Area, as well as in Santa Cruz to the south of the Bay Area.
By mid-2006, declining home prices reached the Central Valley, the capital city of Sacramento, another beach community, Monterey, as well as San Diego, Palm Springs and other areas.
Each month shifts another California region or two into the falling home prices list and by August, 12 of the 20 regions tracked had home prices in the red with Silicon Valley, the city/county of San Francisco and other areas poised to join them in the coming months.
Miami Real Estate - Real Estate Press
Falling home prices is spreading to every corner of the nation's most populated state, hot on the heels of falling home prices that have plagued California for the last year.
Like the rest of the nation, declining home sales signaled the beginning of the end for a boom that spawned unsustainable home price appreciation and, ultimately, too many homes consumers couldn't afford.
In California, the boom began to wane at a time when interest rates were rising, incomes and job growth had failed to keep pace with home price inflation, rising energy costs were squeezing wallets and more affordable rental housing was coming on line.
Nationwide, home prices dropped on a year-to-year basis for the first time in more than a decade when the median price of existing homes slipped nearly 2 percent in August, compared to August 2005, according to the National Association of Realtors.
California, statewide, coming off a record year (2005) in sales and prices, is on track to follow suit.
In August, California's single-family home sales count came in 30 percent short of last August's and condo sales were down more 31.1 percent. The single-family median home price rose only 1.6 percent as the median condo price barely budged up 0.1 percent, according to the California Association of Realtors.
According to CAR, existing home sales have been declining in California every month since October 2005, months before prices even began to slip in select markets. Year-to-year home sales were down 17.6 percent in December 2005, but home prices were still rising at the rate of 5.6 percent.
It wasn't until early 2006 when declining sales began to pull prices down, first in the posh Santa Barbara coastal area, in the less populated hinterlands at the northern end of the state and in between, in portions of wine country north of the San Francisco Bay Area, as well as in Santa Cruz to the south of the Bay Area.
By mid-2006, declining home prices reached the Central Valley, the capital city of Sacramento, another beach community, Monterey, as well as San Diego, Palm Springs and other areas.
Each month shifts another California region or two into the falling home prices list and by August, 12 of the 20 regions tracked had home prices in the red with Silicon Valley, the city/county of San Francisco and other areas poised to join them in the coming months.
Miami Real Estate - Real Estate Press
Wednesday, 27 September 2006
London-based conference group, ICG, is organizing a two-day conference, IREF Middle East 2006 in Jeddah, Saudi Arabia, between the 4th - 6th of November 2006 at the Jeddah Hilton. The conference is in co-operation with the Jeddah Chamber of Commerce and in association with Islamic Banker magazine.
According to a study conducted by Samba Financial Group, the Kingdom is positioned to earn an all-time record, SR761 billion ($202.9 billion) in oil exports earnings this year, representing a 25-percent increase in oil earnings compared to last year. Furthermore, according to many bankers, the projected magnitude of the capital flows in the GCC and Saudi economy over the next few years is 'mind-boggling.'
IREF is the first international real estate conference to be organized in the Kingdom, which also straddles both the conventional and Shariah-compliant investment sectors. Saudi Arabia is by far the single largest real estate market in the GCC, whether in terms of owners of capital; market size or potential market growth, accounting for US$12,800 million followed by the UAE with US$8,049 million.
According to various estimates, private liquidity in the MENA (Middle East and North Africa) countries is a staggering US$2.3 trillion, of which US$1.5 trillion is in the GCC alone. Moreover, the contribution of the real estate sector to GDP in the GCC, according to Global Research, totaled US$27,274 million in 2004, some 5.8 per cent of GDP.
Also perhaps one of the most promising market indicators is that 36 per cent of GCC population is under the age of 15. This alone suggests huge future demand for housing stock. High quality office space is in short supply in Dubai, Riyadh, Jeddah, and Doha. This has had an upward impact on prices.
With all these factors in play, this conference aims to leverage these factors and to highlight the role, contribution and importance of the sector to the Saudi economy, comes at a perfect time. It aims to explore and inform interested parties about the current state of the real estate market, focusing particularly on the regional markets and those markets that are popular locations of GCC investment such as the US, UK, and the EU.
The conference will consider new market opportunities; future product trends including private equity, REITS and Waqfs; innovations in housing finance; developments in social housing; and the case for real estate insurance. It will also discuss the spectacular emergence of Shariah-compliant real estate investments.
In the past IREF has brought together professionals and practitioners from the global real estate sectors as well as those from the conventional and Islamic financing industry. Continuing this tradition, IREF ME 2006 will feature presentations from over 40 distinguished speakers from all over the world focusing on the hottest topics in their areas of expertise.
Miami Real Estate - Real Estate Press
London-based conference group, ICG, is organizing a two-day conference, IREF Middle East 2006 in Jeddah, Saudi Arabia, between the 4th - 6th of November 2006 at the Jeddah Hilton. The conference is in co-operation with the Jeddah Chamber of Commerce and in association with Islamic Banker magazine.
According to a study conducted by Samba Financial Group, the Kingdom is positioned to earn an all-time record, SR761 billion ($202.9 billion) in oil exports earnings this year, representing a 25-percent increase in oil earnings compared to last year. Furthermore, according to many bankers, the projected magnitude of the capital flows in the GCC and Saudi economy over the next few years is 'mind-boggling.'
IREF is the first international real estate conference to be organized in the Kingdom, which also straddles both the conventional and Shariah-compliant investment sectors. Saudi Arabia is by far the single largest real estate market in the GCC, whether in terms of owners of capital; market size or potential market growth, accounting for US$12,800 million followed by the UAE with US$8,049 million.
According to various estimates, private liquidity in the MENA (Middle East and North Africa) countries is a staggering US$2.3 trillion, of which US$1.5 trillion is in the GCC alone. Moreover, the contribution of the real estate sector to GDP in the GCC, according to Global Research, totaled US$27,274 million in 2004, some 5.8 per cent of GDP.
Also perhaps one of the most promising market indicators is that 36 per cent of GCC population is under the age of 15. This alone suggests huge future demand for housing stock. High quality office space is in short supply in Dubai, Riyadh, Jeddah, and Doha. This has had an upward impact on prices.
With all these factors in play, this conference aims to leverage these factors and to highlight the role, contribution and importance of the sector to the Saudi economy, comes at a perfect time. It aims to explore and inform interested parties about the current state of the real estate market, focusing particularly on the regional markets and those markets that are popular locations of GCC investment such as the US, UK, and the EU.
The conference will consider new market opportunities; future product trends including private equity, REITS and Waqfs; innovations in housing finance; developments in social housing; and the case for real estate insurance. It will also discuss the spectacular emergence of Shariah-compliant real estate investments.
In the past IREF has brought together professionals and practitioners from the global real estate sectors as well as those from the conventional and Islamic financing industry. Continuing this tradition, IREF ME 2006 will feature presentations from over 40 distinguished speakers from all over the world focusing on the hottest topics in their areas of expertise.
Miami Real Estate - Real Estate Press
Wednesday, 27 September 2006
MUMBAI -- HSBC is planning to set up a real estate investment fund in a bid to tap the booming real estate sector. Simen Munter, deputy chief executive officer, HSBC India, said this on the sidelines of the banking seminar organised by Ficci and IBA.
Munter said the bank had seen heavy demands for investments in the real estate. However, he denied of any bubble existing in the same. The corpus for the fund was not yet fixed, he added. Commenting on the Indian operations, he said India is one of the key business areas for HSBC. It is among the top 10 profit contributors to HSBC.
HSBC is pumping in $3 million for its Hyderabad branch expansion. The bank is planning to relocate its branch to a 50,000 sq feet premises very soon. HSBC is also setting up a processing centre at Malad in Mumbai. The 200,000 sq feet centre will take care of its BPO operations. HSBC has invested $10- 15 million for the processing centre. On the branch expansion, Munter said the bank had got three licences this year, of which two branches, in Raipur and Patna, are already set up, while it is planning to set up a branch in Lucknow.
Meanwhile on the NBFC licence, he said it had not yet received permission from the regulator and once it is received they would relocate the consumer finance business of the bank to NBF.
Miami Real Estate - Real Estate Press
MUMBAI -- HSBC is planning to set up a real estate investment fund in a bid to tap the booming real estate sector. Simen Munter, deputy chief executive officer, HSBC India, said this on the sidelines of the banking seminar organised by Ficci and IBA.
Munter said the bank had seen heavy demands for investments in the real estate. However, he denied of any bubble existing in the same. The corpus for the fund was not yet fixed, he added. Commenting on the Indian operations, he said India is one of the key business areas for HSBC. It is among the top 10 profit contributors to HSBC.
HSBC is pumping in $3 million for its Hyderabad branch expansion. The bank is planning to relocate its branch to a 50,000 sq feet premises very soon. HSBC is also setting up a processing centre at Malad in Mumbai. The 200,000 sq feet centre will take care of its BPO operations. HSBC has invested $10- 15 million for the processing centre. On the branch expansion, Munter said the bank had got three licences this year, of which two branches, in Raipur and Patna, are already set up, while it is planning to set up a branch in Lucknow.
Meanwhile on the NBFC licence, he said it had not yet received permission from the regulator and once it is received they would relocate the consumer finance business of the bank to NBF.
Miami Real Estate - Real Estate Press
Tuesday, 26 September 2006
A majority of Koreans take investment in real estate the most effective means to increase their wealth, despite a series of strong anti-real estate speculation measures by the government, a poll shows.
Stock investment and funds were traditionally considered the third most effective way of getting rich, though this has risen, from 4.9 percent in 2000 to 12.6 percent.
According to results released Tuesday, 50.3 percent of respondents regarded investment in property as the most effective way to augment their wealth, about double the number of those who preferred banking deposits (27.6 percent). In a similar survey in December 2000, bank accounts were considered the most effective way with 73.6 percent, while a mere 13.6 percent of respondents cited real estate investment. In another similar poll by Gallup Korea in February 2003, when the incumbent government took office, there was only a little difference in the size of the two groups, 38 percent for bank products and 38.4 percent for property.
People from every walk of life preferred real estate investment, regardless of how old they are, where they live and how much they earn. By age, 59.8 percent of respondents in their 40s and 48.5 percent of people in their 20s chose real estate investment as the best financial means. By region, Daejon and Chungcheong Province residents were most fond of property investment (59.5 percent), followed by residents in Seoul and Gyeonggi Province (56.6 percent). Some 48.9 percent of rural residents also regarded real estate investment as the best way to increase their wealth. There was no evident difference in income groups: 53.5 percent of people earning more than W4 million (US$1=W944) a month chose real estate, 56.7 percent of people earning between W2 million and W4 million and 48.7 percent of people earning less than W2 million.
Asked about their current financial state, 73.7 percent answered it was tight. One out of 10 households said they had to borrow money to make a living, and only 16.5 percent answered that they were financially comfortable. An overwhelming 94.3 percent of respondents found their lives unchanged or worse than last year. A paltry 5.8 percent answered their living conditions got better. Asked about prospects a year from now, 21.4 percent were optimistic, while 61.6 percent expected no change and 17 percent were pessimistic.
Miami Real Estate - Real Estate Press
A majority of Koreans take investment in real estate the most effective means to increase their wealth, despite a series of strong anti-real estate speculation measures by the government, a poll shows.
Stock investment and funds were traditionally considered the third most effective way of getting rich, though this has risen, from 4.9 percent in 2000 to 12.6 percent.
According to results released Tuesday, 50.3 percent of respondents regarded investment in property as the most effective way to augment their wealth, about double the number of those who preferred banking deposits (27.6 percent). In a similar survey in December 2000, bank accounts were considered the most effective way with 73.6 percent, while a mere 13.6 percent of respondents cited real estate investment. In another similar poll by Gallup Korea in February 2003, when the incumbent government took office, there was only a little difference in the size of the two groups, 38 percent for bank products and 38.4 percent for property.
People from every walk of life preferred real estate investment, regardless of how old they are, where they live and how much they earn. By age, 59.8 percent of respondents in their 40s and 48.5 percent of people in their 20s chose real estate investment as the best financial means. By region, Daejon and Chungcheong Province residents were most fond of property investment (59.5 percent), followed by residents in Seoul and Gyeonggi Province (56.6 percent). Some 48.9 percent of rural residents also regarded real estate investment as the best way to increase their wealth. There was no evident difference in income groups: 53.5 percent of people earning more than W4 million (US$1=W944) a month chose real estate, 56.7 percent of people earning between W2 million and W4 million and 48.7 percent of people earning less than W2 million.
Asked about their current financial state, 73.7 percent answered it was tight. One out of 10 households said they had to borrow money to make a living, and only 16.5 percent answered that they were financially comfortable. An overwhelming 94.3 percent of respondents found their lives unchanged or worse than last year. A paltry 5.8 percent answered their living conditions got better. Asked about prospects a year from now, 21.4 percent were optimistic, while 61.6 percent expected no change and 17 percent were pessimistic.
Miami Real Estate - Real Estate Press
Tuesday, 26 September 2006
The mortgage market has changed a lot over the last decade and this has impacted the level of higher-priced loans in an interesting way. Ten or so years ago consumers had a limited selection of mortgage products and prices varied as dictated by a quite different set of variable than those in place today. Rates and prices were not determined by the creditworthiness of the borrower but by loan type (conventional or government backed) the amount borrowed, owner occupancy, loan term, and the quality of the collateral (stick built homes vs. manufactured housing; loan to value ratio.) Those borrowers who fell on the wrong side of these criteria were not charged higher prices; they just didn't get the loan.
This has expanded homeownership opportunities but has led to a segmented credit market where borrowers fall into three categories; prime borrowers, i.e. those who always got credit and now get the best deals, and "subprime" or "near prime" borrowers. Those in the subprime category typically pay the highest rate because of the risks they pose; not only a risk that they won't pay on their obligation but that they will be more likely to prepay their mortgages ahead of schedule once they have cleaned up their credit, build up equity or increased their income. These subprime borrowers can also be more costly to service, requiring more monitoring or greater collection efforts. But, the thresholds that separate these market segments can change as market interest rates move, as lenders' appetites for interest rate or credit risk change, as technological improvements allow for more precise risk assessments.
The report states that the nonprime market has grown dramatically in recent years and quotes one source as saying that, from 1994 to 2005 the dollar volume of subprime loans increased from $35 billion to over $600 billion and subprime loans are now estimated to make up 20 percent of all mortgage originations compared to less than 5 percent in 1994.
Subprime loan originations do not correspond exactly with those loans defined as having prices exceeding the threshold as defined by Regulation C, however the latter increased significantly in 2005 over 2004 figures. For example, the incidence of higher-priced lending for conventional, owner-occupied, first-lien home-purchase loans rose from 11.5 percent in 2004 to 24.6 percent in 2005. This increase, however, was driven in part by the flattening of the yield curve, by the yield curve coupled with an artifact of the way APRs on adjustable rate loans are determined, and borrower or lender-specific changes in the risk characteristics of lending. These changes in risk characteristics were in part because substantial increases in house prices in some parts of the country caused more borrowers to stretch financially to obtain loans.
Analysis of the HMDA data revealed substantial variations in the incidence of higher-priced lending across racial and ethnic lines and the report states that these differences could not be fully explained by information in the HMDA data. The 2005 HMDA data indicate that black and Hispanic borrowers are more likely, and Asian borrowers less likely to obtain loans that cost more than the pricing thresholds than are non-Hispanic white borrowers. The gross mean incidence of higher-priced lending for home purchases was 54.7 percent for blacks and 17.2 percent for non-Hispanic whites. When the analysis took into account variables other than race that effect either borrower or lender this 37.5 percentage point difference is reduced to about 10 percentage points. When it comes to refinancing the gross difference between blacks and non-Hispanic whites is 28.3 percent but this is reduced to 6.2 percentage points after controlling for borrower and lender factors.
Analysis of the HMDA data across several years has indicated that loans are denied at different rates when applicants are grouped by race or ethnicity. 2005 was no exception. For each loan product category, American Indians, blacks, and Hispanic whites had higher denial rates than non-Hispanic whites; blacks generally had the highest denial rates and non-Hispanic whites the lowest; Hispanic whites fall about midway between the two other groups. The denial rates for Asians relative to other ethnic groups varied across loan products.
As with pricing, controlling for other borrower and lender variables reduced the disparity in denial rates. For example, blacks had a gross denial rate for first-lien home purchase loans of 27.5 percent compared to 12.3 percent for non-Hispanic whites. Accounting for income, loan amount, and other borrower-related factors reduces the difference by 3.1 percentage points and adding lender factors to the control reduces the gap to 7.0 percentage points. Refinancing patterns were very similar.
Miami Real Estate - Real Estate Press
The mortgage market has changed a lot over the last decade and this has impacted the level of higher-priced loans in an interesting way. Ten or so years ago consumers had a limited selection of mortgage products and prices varied as dictated by a quite different set of variable than those in place today. Rates and prices were not determined by the creditworthiness of the borrower but by loan type (conventional or government backed) the amount borrowed, owner occupancy, loan term, and the quality of the collateral (stick built homes vs. manufactured housing; loan to value ratio.) Those borrowers who fell on the wrong side of these criteria were not charged higher prices; they just didn't get the loan.
This has expanded homeownership opportunities but has led to a segmented credit market where borrowers fall into three categories; prime borrowers, i.e. those who always got credit and now get the best deals, and "subprime" or "near prime" borrowers. Those in the subprime category typically pay the highest rate because of the risks they pose; not only a risk that they won't pay on their obligation but that they will be more likely to prepay their mortgages ahead of schedule once they have cleaned up their credit, build up equity or increased their income. These subprime borrowers can also be more costly to service, requiring more monitoring or greater collection efforts. But, the thresholds that separate these market segments can change as market interest rates move, as lenders' appetites for interest rate or credit risk change, as technological improvements allow for more precise risk assessments.
The report states that the nonprime market has grown dramatically in recent years and quotes one source as saying that, from 1994 to 2005 the dollar volume of subprime loans increased from $35 billion to over $600 billion and subprime loans are now estimated to make up 20 percent of all mortgage originations compared to less than 5 percent in 1994.
Subprime loan originations do not correspond exactly with those loans defined as having prices exceeding the threshold as defined by Regulation C, however the latter increased significantly in 2005 over 2004 figures. For example, the incidence of higher-priced lending for conventional, owner-occupied, first-lien home-purchase loans rose from 11.5 percent in 2004 to 24.6 percent in 2005. This increase, however, was driven in part by the flattening of the yield curve, by the yield curve coupled with an artifact of the way APRs on adjustable rate loans are determined, and borrower or lender-specific changes in the risk characteristics of lending. These changes in risk characteristics were in part because substantial increases in house prices in some parts of the country caused more borrowers to stretch financially to obtain loans.
Analysis of the HMDA data revealed substantial variations in the incidence of higher-priced lending across racial and ethnic lines and the report states that these differences could not be fully explained by information in the HMDA data. The 2005 HMDA data indicate that black and Hispanic borrowers are more likely, and Asian borrowers less likely to obtain loans that cost more than the pricing thresholds than are non-Hispanic white borrowers. The gross mean incidence of higher-priced lending for home purchases was 54.7 percent for blacks and 17.2 percent for non-Hispanic whites. When the analysis took into account variables other than race that effect either borrower or lender this 37.5 percentage point difference is reduced to about 10 percentage points. When it comes to refinancing the gross difference between blacks and non-Hispanic whites is 28.3 percent but this is reduced to 6.2 percentage points after controlling for borrower and lender factors.
Analysis of the HMDA data across several years has indicated that loans are denied at different rates when applicants are grouped by race or ethnicity. 2005 was no exception. For each loan product category, American Indians, blacks, and Hispanic whites had higher denial rates than non-Hispanic whites; blacks generally had the highest denial rates and non-Hispanic whites the lowest; Hispanic whites fall about midway between the two other groups. The denial rates for Asians relative to other ethnic groups varied across loan products.
As with pricing, controlling for other borrower and lender variables reduced the disparity in denial rates. For example, blacks had a gross denial rate for first-lien home purchase loans of 27.5 percent compared to 12.3 percent for non-Hispanic whites. Accounting for income, loan amount, and other borrower-related factors reduces the difference by 3.1 percentage points and adding lender factors to the control reduces the gap to 7.0 percentage points. Refinancing patterns were very similar.
Miami Real Estate - Real Estate Press
Monday, 25 September 2006
When the Federal Reserve decided to leave short-term interest rates unchanged, consumers with floating-rate home equity lines avoided a pinprick of pain they've gotten used to. The average home equity credit line now carries an interest rate close to the bank prime. Many equity line borrowers have seen their rates nearly double in the past two years, leading large numbers of them to simply bail out of their floating-rate notes.
Some consumers have managed to pay off their balances by doing cash-out refinancings, essentially moving their floating-rate debt onto a new first mortgage at a fixed rate. But cash-out refis usually mean replacing a low-rate first mortgage with a larger first carrying a higher interest rate.
But major home equity lenders are now offering another alternative: Don't throw away that precious 5.50 or 5.75 percent first mortgage that you got during the refi boom years of 2003 and 2004. Keep it intact and convert your floating-rate credit line into one or more "baskets" or sub-accounts with attractive fixed rates at zero cost. It's the hottest, but least known, trend underway in the home equity field, say bankers.
Annapolis, Maryland homeowner Andy Hallmark accidentally bumped into the trend recently when monthly costs on his $70,000 floating-rate credit line got uncomfortably high. He and his wife assumed they'd have to bail out of the line and refinance their first mortgage.
But before doing that, the Hallmarks decided to try something different. They called up their lender and asked an improbable question: Could we possibly transform our credit line into a fixed-rate note and get some peace of mind about future rate increases?
Not only did the bank say yes, it also said there'd be no fees, no closing costs, and the new fixed rate would be in the mid-7 percent range, well below the bank's floating rate of 8.25 percent.
The Hallmarks' discovery could have been duplicated at other large home equity lenders. According to banking industry experts, lenders have had to scramble to change their multi-trillion dollar products to avoid mass payoffs of balances triggered by rising short-term rates. Most home equity lines are tied to prime -- typically anywhere from prime plus one percent to prime minus one quarter or one-half percent.
Rather than lose customers in droves, major banks like JPMorgan Chase, Citibank, Wachovia and Wells Fargo now offer zero-cost conversion plans turning floating-rate credit lines into fixed-rate second mortgages.
Citibank and Chase offer another twist: You can chop your credit line balance into as many as five sub-accounts or "baskets" with different terms and rates, at no cost anytime you want.
Miami Real Estate - Real Estate Press
When the Federal Reserve decided to leave short-term interest rates unchanged, consumers with floating-rate home equity lines avoided a pinprick of pain they've gotten used to. The average home equity credit line now carries an interest rate close to the bank prime. Many equity line borrowers have seen their rates nearly double in the past two years, leading large numbers of them to simply bail out of their floating-rate notes.
Some consumers have managed to pay off their balances by doing cash-out refinancings, essentially moving their floating-rate debt onto a new first mortgage at a fixed rate. But cash-out refis usually mean replacing a low-rate first mortgage with a larger first carrying a higher interest rate.
But major home equity lenders are now offering another alternative: Don't throw away that precious 5.50 or 5.75 percent first mortgage that you got during the refi boom years of 2003 and 2004. Keep it intact and convert your floating-rate credit line into one or more "baskets" or sub-accounts with attractive fixed rates at zero cost. It's the hottest, but least known, trend underway in the home equity field, say bankers.
Annapolis, Maryland homeowner Andy Hallmark accidentally bumped into the trend recently when monthly costs on his $70,000 floating-rate credit line got uncomfortably high. He and his wife assumed they'd have to bail out of the line and refinance their first mortgage.
But before doing that, the Hallmarks decided to try something different. They called up their lender and asked an improbable question: Could we possibly transform our credit line into a fixed-rate note and get some peace of mind about future rate increases?
Not only did the bank say yes, it also said there'd be no fees, no closing costs, and the new fixed rate would be in the mid-7 percent range, well below the bank's floating rate of 8.25 percent.
The Hallmarks' discovery could have been duplicated at other large home equity lenders. According to banking industry experts, lenders have had to scramble to change their multi-trillion dollar products to avoid mass payoffs of balances triggered by rising short-term rates. Most home equity lines are tied to prime -- typically anywhere from prime plus one percent to prime minus one quarter or one-half percent.
Rather than lose customers in droves, major banks like JPMorgan Chase, Citibank, Wachovia and Wells Fargo now offer zero-cost conversion plans turning floating-rate credit lines into fixed-rate second mortgages.
Citibank and Chase offer another twist: You can chop your credit line balance into as many as five sub-accounts or "baskets" with different terms and rates, at no cost anytime you want.
Miami Real Estate - Real Estate Press
Tuesday, 19 September 2006
Ownership of condominium units is a popular move by buyers in the US. It seemed that condo developments are a win-win situation for everybody. For builders, they can represent a strong return on investment.
Condominiums come in all shapes and flavors. The newest breed is found in the urban areas. This is partly due to the trend towards urban renewal and redevelopment that is found in many portions of this country.
The types of developments have different names in different states. Unit owners are responsible for and own the interior of the living spaces, often to the finished walls.
The association is responsible for the areas beyond the finished walls, typically the structures themselves, the plumbing, the common sewer lines, etc.
In addition, there are common elements that are controlled by the association. Typically, this might include pathways, recreation facilities, swimming pools, tennis courts, and anything else that is for the benefit of the association.
A limited common area might be a part of the lawn that's fenced off for the use of a particular unit owner.
These are general observations. Before you purchase you must read the master deed, the bylaws and every other governing document to find out what you will own and what you will not own.
Condominium projects, with little exception, look wonderful when first built. After they are occupied by property owners, control shifts from the builder to the individual unit owners. At that time, the unit owners run the condominium association and begin full control and responsibility for the common elements.
The success of the condominium association is directly related to the caliber of the association. If the association board of directors is functioning properly and has good legal counsel and other professionals, then the entire community may be an exciting, desirable place to call home.
On the other hand, if the association is falling apart, if nobody wants to volunteer, if it's not governed by capable, caring people, if it doesn't retain quality professionals, or it isn't properly collecting the monthly assessments from the unit owners, then the community probably won't be a desirable place to litave. And people are probably not going to continue to live there.
Above and beyond the normal kinds of things that you need to do, you absolutely must look at the condominium records and documents. Take a look at the minutes. Is this a properly run, stable organization? Are there constant resignations; does it appear that little ever gets accomplished?
There is no getting around the fact that due diligence in the case of a condominium purchase requires an examination of the Association records and legal documents. Examine them and ask questions before purchasing. I suggest having an attorney help you understand the association and its workings. This is an inexpensive service, and may prove down the road to be a very worth while investment.
Miami Real Estate - Real Estate Press
Ownership of condominium units is a popular move by buyers in the US. It seemed that condo developments are a win-win situation for everybody. For builders, they can represent a strong return on investment.
Condominiums come in all shapes and flavors. The newest breed is found in the urban areas. This is partly due to the trend towards urban renewal and redevelopment that is found in many portions of this country.
The types of developments have different names in different states. Unit owners are responsible for and own the interior of the living spaces, often to the finished walls.
The association is responsible for the areas beyond the finished walls, typically the structures themselves, the plumbing, the common sewer lines, etc.
In addition, there are common elements that are controlled by the association. Typically, this might include pathways, recreation facilities, swimming pools, tennis courts, and anything else that is for the benefit of the association.
A limited common area might be a part of the lawn that's fenced off for the use of a particular unit owner.
These are general observations. Before you purchase you must read the master deed, the bylaws and every other governing document to find out what you will own and what you will not own.
Condominium projects, with little exception, look wonderful when first built. After they are occupied by property owners, control shifts from the builder to the individual unit owners. At that time, the unit owners run the condominium association and begin full control and responsibility for the common elements.
The success of the condominium association is directly related to the caliber of the association. If the association board of directors is functioning properly and has good legal counsel and other professionals, then the entire community may be an exciting, desirable place to call home.
On the other hand, if the association is falling apart, if nobody wants to volunteer, if it's not governed by capable, caring people, if it doesn't retain quality professionals, or it isn't properly collecting the monthly assessments from the unit owners, then the community probably won't be a desirable place to litave. And people are probably not going to continue to live there.
Above and beyond the normal kinds of things that you need to do, you absolutely must look at the condominium records and documents. Take a look at the minutes. Is this a properly run, stable organization? Are there constant resignations; does it appear that little ever gets accomplished?
There is no getting around the fact that due diligence in the case of a condominium purchase requires an examination of the Association records and legal documents. Examine them and ask questions before purchasing. I suggest having an attorney help you understand the association and its workings. This is an inexpensive service, and may prove down the road to be a very worth while investment.
Miami Real Estate - Real Estate Press
Monday, 18 September 2006
In cooling real estate markets, it's the hottest question: How do you value a specific piece of property when local home sales are down 20 percent to 40 percent from last year, inventories of unsold homes have ballooned by 200 percent or more, and all the trend lines are pointing negative?
Traditionally, real estate appraisers focused heavily on sales of similar properties to make their valuations. But that doesn't work well in markets that had been super heated but are now stalled out or falling. It also doesn't work well in markets where recent closed sales prices often were inflated by incentives provided by sellers to buyers -- contributions to closing costs, for example, 'buydowns' of mortgage interest rates and other sweeteners not always on the public record.
Some mortgage lenders and relocation companies now expect appraisers to examine a wide range of data that they never emphasized during the boom years.
Another emerging challenge for appraisers in cooling markets: Some relocation companies and lenders are asking them not only for current market values, but forecasts of where the property value will be in the coming 60 to 120 days.
If the recorded contract price on a pending or recently closed sale is $395,000, but the seller is kicking in $25,000 in concessions, the value of the property for comparable purposes is $370,000.
Miami Real Estate - Real Estate Press
In cooling real estate markets, it's the hottest question: How do you value a specific piece of property when local home sales are down 20 percent to 40 percent from last year, inventories of unsold homes have ballooned by 200 percent or more, and all the trend lines are pointing negative?
Traditionally, real estate appraisers focused heavily on sales of similar properties to make their valuations. But that doesn't work well in markets that had been super heated but are now stalled out or falling. It also doesn't work well in markets where recent closed sales prices often were inflated by incentives provided by sellers to buyers -- contributions to closing costs, for example, 'buydowns' of mortgage interest rates and other sweeteners not always on the public record.
Some mortgage lenders and relocation companies now expect appraisers to examine a wide range of data that they never emphasized during the boom years.
Another emerging challenge for appraisers in cooling markets: Some relocation companies and lenders are asking them not only for current market values, but forecasts of where the property value will be in the coming 60 to 120 days.
If the recorded contract price on a pending or recently closed sale is $395,000, but the seller is kicking in $25,000 in concessions, the value of the property for comparable purposes is $370,000.
Miami Real Estate - Real Estate Press
Wednesday, 13 September 2006
Tightening vacancy rates and rising rents are pouring funds into commercial sectors. Commercial real estate markets expect this.
David Lereah, NAR's chief economist, said most commercial market fundamentals are solid. "Commercial real estate markets move in response to changes in fundamental demand, which remains solid as a result of sustained job creation and economic growth," he said. "Except for some weakness in the retail sector, the commercial market is benefiting from lower vacancies and higher rents."
These institutions spent over $31.0 billion in all of the commercial sectors so far this year, which is seen to be a record for institutional investment in commercial grade properties. Institutional investors and private equity funds accounted for half of all office buildings purchased during the first seven months of 2006, and also purchased one-third of industrial real estate.
The NAR forecast for five major commercial sectors includes analysis of quarterly data for various tracked metro areas. The sectors include the office, industrial, retail, multifamily and hospitality markets. Metro data were provided by Torto Wheaton Research and Real Capital Analytics.
With a slowdown in speculative construction, office market vacancy rates are expected to drop to an average of 13.0 percent in the fourth quarter from 13.6 percent during the same quarter of last year, and will be the lowest since 2001. Office rents are likely to rise 5.5 percent for all of 2006.
Net absorption of office space in 56 markets tracked, which includes the leasing of new space coming on the market as well as space in existing properties, is projected at 74.5 million square feet this year, compared with 90.3 million in 2005.
Vacancy rates in the industrial sector should decline to an average of 9.7 percent in the fourth quarter from 9.9 percent a year earlier, and will be at the lowest level in five years; rents are forecast to rise 1.5 percent in 2006. Although the greatest demand remains in port markets, new construction is popular in secondary markets and other areas with lower land values and fewer site remediation concerns.
Industrial transaction volume so far in 2006 totaled $23.6 billion, with a record possible this year. The highest industrial market rent per square foot is in San Diego; Orange Country, Calif.; and Los Angeles. The highest prices being paid for industrial properties, outside of Manhattan, are in Northern Virginia; San Jose, Calif.; and Las Vegas.
Retail is the only commercial sector currently experiencing a decline in fundamentals. Higher interest rates and fluctuating oil prices are impacting consumer confidence, with some fallout in the retail market. Vacancy rates are likely to rise to 8.1 percent in the fourth quarter from 7.2 percent in the fourth quarter of 2005. Average retail rent will probably decline 1.4 percent this year before gaining traction in 2007. Mergers continue to impact regional malls and main streets in many areas.
The highest-priced retail real estate is in Manhattan and Washington, while the highest gross rents are in Riverside, Calif.; San Jose; and Orange County, Calif. During the first seven months of 2006, a total of $22.3 billion was invested in retail real estate.
The apartment rental market -- multifamily housing -- is benefiting from weaker home sales as potential home buyers remain in rental housing. Vacancy rates in the fourth quarter are expected to average 5.2 percent, down from 6.2 percent during the fourth quarter of 2005. Average rent is projected to increase 4.8 percent in 2006, compared with 2.9 percent last year.
The National Association of Realtors(R), "The Voice for Real Estate," is America's largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.
Miami Real Estate - Real Estate Press
Tightening vacancy rates and rising rents are pouring funds into commercial sectors. Commercial real estate markets expect this.
David Lereah, NAR's chief economist, said most commercial market fundamentals are solid. "Commercial real estate markets move in response to changes in fundamental demand, which remains solid as a result of sustained job creation and economic growth," he said. "Except for some weakness in the retail sector, the commercial market is benefiting from lower vacancies and higher rents."
These institutions spent over $31.0 billion in all of the commercial sectors so far this year, which is seen to be a record for institutional investment in commercial grade properties. Institutional investors and private equity funds accounted for half of all office buildings purchased during the first seven months of 2006, and also purchased one-third of industrial real estate.
The NAR forecast for five major commercial sectors includes analysis of quarterly data for various tracked metro areas. The sectors include the office, industrial, retail, multifamily and hospitality markets. Metro data were provided by Torto Wheaton Research and Real Capital Analytics.
With a slowdown in speculative construction, office market vacancy rates are expected to drop to an average of 13.0 percent in the fourth quarter from 13.6 percent during the same quarter of last year, and will be the lowest since 2001. Office rents are likely to rise 5.5 percent for all of 2006.
Net absorption of office space in 56 markets tracked, which includes the leasing of new space coming on the market as well as space in existing properties, is projected at 74.5 million square feet this year, compared with 90.3 million in 2005.
Vacancy rates in the industrial sector should decline to an average of 9.7 percent in the fourth quarter from 9.9 percent a year earlier, and will be at the lowest level in five years; rents are forecast to rise 1.5 percent in 2006. Although the greatest demand remains in port markets, new construction is popular in secondary markets and other areas with lower land values and fewer site remediation concerns.
Industrial transaction volume so far in 2006 totaled $23.6 billion, with a record possible this year. The highest industrial market rent per square foot is in San Diego; Orange Country, Calif.; and Los Angeles. The highest prices being paid for industrial properties, outside of Manhattan, are in Northern Virginia; San Jose, Calif.; and Las Vegas.
Retail is the only commercial sector currently experiencing a decline in fundamentals. Higher interest rates and fluctuating oil prices are impacting consumer confidence, with some fallout in the retail market. Vacancy rates are likely to rise to 8.1 percent in the fourth quarter from 7.2 percent in the fourth quarter of 2005. Average retail rent will probably decline 1.4 percent this year before gaining traction in 2007. Mergers continue to impact regional malls and main streets in many areas.
The highest-priced retail real estate is in Manhattan and Washington, while the highest gross rents are in Riverside, Calif.; San Jose; and Orange County, Calif. During the first seven months of 2006, a total of $22.3 billion was invested in retail real estate.
The apartment rental market -- multifamily housing -- is benefiting from weaker home sales as potential home buyers remain in rental housing. Vacancy rates in the fourth quarter are expected to average 5.2 percent, down from 6.2 percent during the fourth quarter of 2005. Average rent is projected to increase 4.8 percent in 2006, compared with 2.9 percent last year.
The National Association of Realtors(R), "The Voice for Real Estate," is America's largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.
Miami Real Estate - Real Estate Press
Tuesday, 12 September 2006
Despite news of law notification and enforcement that the government has been doing, the man investors deceived in a real estate scam believe stole their money is still freely operating. Darin DeVoe is chased by these investors.
Two of the victims who happened to be DeVoe’s former friends, Harris and Steve Short who live in Alaska, constructed a website dedicating to investors their stories, losses and other relevant information to help further their cases and find the culprit.
DeVoe made headlines in November 2005, when area investors had had enough. Several had been meeting regularly at Harris' home in a support-group setting.
"We don't want other people to get hurt," said Rich Harris, a West Greeley investor who helped come up with the idea of a new Web site dedicated to bringing DeVoe down. "We want people to do a search on Darin DeVoe and find this Web site. We want to scare away business from him. We feel that is our civic duty." "As long as it's all related to Darin, I don't care what people post," said Short, who designed the site and who vows users will remain anonymous. "I'm not going to make a nickel off of this. It's purely a matter of right and wrong and for (DeVoe) to walk away is just wrong."
Others filed lawsuits, but little has been done because DeVoe is on the run and can't be found to even serve a subpoena.
The investors said DeVoe induced them to invest in his mortgage business by buying distressed homes he'd picked out, then entering into agreements, whereby his company would manage the properties and forward small monthly profits to the owners.
The investors said the plan worked fine at first -- that was the bait -- until their initial success created a domino effect where they were investing in two or more homes -- then the switch.
They said DeVoe robbed the homes of their equity and failed to manage any of the properties. Homeowners were stuck with upside down loans and homes in disrepair, massive mortgages and no way out. Many of the homes went into foreclosure.
Investors' continued efforts have seemingly gone nowhere with law enforcement, which won't confirm or deny any investigations.
"I've gotten to the point where I've tried not to think about it and let some of it go," said Rosenquist, also a former friend of DeVoe. "You're not going to get your money back. All you can hope for is to see him in jail, but I don't think a Web site will do that."
Well, it can't hurt, the Web operators say.
"Maybe we're beating a dead horse, but at this point, we don't know if the horse is dead," Harris said. "One of the things we're trying to do is keep this story fresh. We can't let it lie unless we have results. We don't expect our money back, we just want justice to be done."
Miami Real Estate - Real Estate Press
Despite news of law notification and enforcement that the government has been doing, the man investors deceived in a real estate scam believe stole their money is still freely operating. Darin DeVoe is chased by these investors.
Two of the victims who happened to be DeVoe’s former friends, Harris and Steve Short who live in Alaska, constructed a website dedicating to investors their stories, losses and other relevant information to help further their cases and find the culprit.
DeVoe made headlines in November 2005, when area investors had had enough. Several had been meeting regularly at Harris' home in a support-group setting.
"We don't want other people to get hurt," said Rich Harris, a West Greeley investor who helped come up with the idea of a new Web site dedicated to bringing DeVoe down. "We want people to do a search on Darin DeVoe and find this Web site. We want to scare away business from him. We feel that is our civic duty." "As long as it's all related to Darin, I don't care what people post," said Short, who designed the site and who vows users will remain anonymous. "I'm not going to make a nickel off of this. It's purely a matter of right and wrong and for (DeVoe) to walk away is just wrong."
Others filed lawsuits, but little has been done because DeVoe is on the run and can't be found to even serve a subpoena.
The investors said DeVoe induced them to invest in his mortgage business by buying distressed homes he'd picked out, then entering into agreements, whereby his company would manage the properties and forward small monthly profits to the owners.
The investors said the plan worked fine at first -- that was the bait -- until their initial success created a domino effect where they were investing in two or more homes -- then the switch.
They said DeVoe robbed the homes of their equity and failed to manage any of the properties. Homeowners were stuck with upside down loans and homes in disrepair, massive mortgages and no way out. Many of the homes went into foreclosure.
Investors' continued efforts have seemingly gone nowhere with law enforcement, which won't confirm or deny any investigations.
"I've gotten to the point where I've tried not to think about it and let some of it go," said Rosenquist, also a former friend of DeVoe. "You're not going to get your money back. All you can hope for is to see him in jail, but I don't think a Web site will do that."
Well, it can't hurt, the Web operators say.
"Maybe we're beating a dead horse, but at this point, we don't know if the horse is dead," Harris said. "One of the things we're trying to do is keep this story fresh. We can't let it lie unless we have results. We don't expect our money back, we just want justice to be done."
Miami Real Estate - Real Estate Press
Tuesday, 12 September 2006
One of the big builders of luxury homes in their third quarter and full year earnings are expected to fall short of their previous forecast. This is the result of sluggish sales. Some realtors and economists now argue that the decline in home prices will be modest and is nearly complete The firm noted that high cancellation rates on contracts in backlog that were projected to close this year and more pronounced use of price concessions and incentives, particularly on the resale of those homes which have experienced contract cancellations.
The decline is caused by the recession that is triggered by the falling home prices, which in turn will lead to a surge in unemployment which would cause them not to afford homes. The first factor that led to the unprecedented surge in home prices of more than 50% in the last five years is that the Federal Reserve began to pursue an extremely easy money policy in 2001 to buffer the economy from the implosion of the stock price bubble of the late 1990s.
Nominal interest rates declined to 1%,and since the inflation rate bounced around 2%, real interest rates were negative. The combination of low interest rates and the ready availability of credit led to a surge in home prices that in turn led to exceptionally high levels of both new construction and remodeling — new kitchens and bathrooms. Moreover the surge in household net worth that followed from the much higher level of home prices facilitated borrowing. People used their new collateral to pay for autos, vacations, tuition, and even daily living expenses.
Another factor that drove home prices upward has been the creativity of the lenders in developing new forms of credit. Financial firms became much more creative in designing mortgages that reduced the monthly payment of the borrowers and thus enabled them to buy more expensive properties. More borrowers opted for adjustable interest rate mortgages, or ARMS. Some provided only for interest payments for five or ten years. A recent innovation was the negative amortization mortgage, sometimes called the option ARM. The interest payment that the borrowers made for three or five years was less than the amount required based on the interest rate, and the borrowers' indebtedness increased.
The expansion of private mortgage insurance meant that many individuals could buy homes for the first time. Their purchases induced significant increase in the prices of starter homes, and the owners of these properties realized large capital gains and spectacular increases in their net worth and so they traded up to more expansive homes.
Miami Real Estate - Real Estate Press
One of the big builders of luxury homes in their third quarter and full year earnings are expected to fall short of their previous forecast. This is the result of sluggish sales. Some realtors and economists now argue that the decline in home prices will be modest and is nearly complete The firm noted that high cancellation rates on contracts in backlog that were projected to close this year and more pronounced use of price concessions and incentives, particularly on the resale of those homes which have experienced contract cancellations.
The decline is caused by the recession that is triggered by the falling home prices, which in turn will lead to a surge in unemployment which would cause them not to afford homes. The first factor that led to the unprecedented surge in home prices of more than 50% in the last five years is that the Federal Reserve began to pursue an extremely easy money policy in 2001 to buffer the economy from the implosion of the stock price bubble of the late 1990s.
Nominal interest rates declined to 1%,and since the inflation rate bounced around 2%, real interest rates were negative. The combination of low interest rates and the ready availability of credit led to a surge in home prices that in turn led to exceptionally high levels of both new construction and remodeling — new kitchens and bathrooms. Moreover the surge in household net worth that followed from the much higher level of home prices facilitated borrowing. People used their new collateral to pay for autos, vacations, tuition, and even daily living expenses.
Another factor that drove home prices upward has been the creativity of the lenders in developing new forms of credit. Financial firms became much more creative in designing mortgages that reduced the monthly payment of the borrowers and thus enabled them to buy more expensive properties. More borrowers opted for adjustable interest rate mortgages, or ARMS. Some provided only for interest payments for five or ten years. A recent innovation was the negative amortization mortgage, sometimes called the option ARM. The interest payment that the borrowers made for three or five years was less than the amount required based on the interest rate, and the borrowers' indebtedness increased.
The expansion of private mortgage insurance meant that many individuals could buy homes for the first time. Their purchases induced significant increase in the prices of starter homes, and the owners of these properties realized large capital gains and spectacular increases in their net worth and so they traded up to more expansive homes.
Miami Real Estate - Real Estate Press
Saturday, 09 September 2006
WASHINGTON -- The National Association of Realtors announced that US home prices will fall temporarily as the housing market correct.
Prices should bounce higher in a few months as the market works through a build in housing inventory. Median existing-home sales prices should rise about 2.8% this year and 2.2% next year, the realtors said in their monthly economic outlook. Median new-home prices are expected to rise 0.2% in 2006 and 2.4% in 2007.
Realtors project that after adjusting for inflation, median home prices would be lower at the end of 2007 than they are now, the.
Existing-home prices have risen at an average of 9.6% annually in the past four years, well ahead of the inflation rate. New-home prices rose 13.3% in 2004 and 9% in 2005. "This year sales are slowing, homes are plentiful and sellers are negotiating," Lereah said. "Under these conditions, we'll probably see prices dip temporarily below year-ago levels as the market works through a build up in housing inventory."
Other economists expect declines or little gain in home prices next year. Twenty-five of 48 economists surveyed in the Wall Street Journal's monthly survey said they expect little or no growth in the Office of Federal Housing Enterprise Oversight's home price index in 2007, the newspaper reported Thursday in its online edition.
The average gain in home prices predicted by the economists in the survey was 0.4%. The OFHEO index has never shown an annual decline in its 30-year history. The smallest gain ever was 1.3% in 1991. See full story on the latest OFHEO release.
Lereah said home prices typically appreciate at the rate of inflation, plus one or two percentage points. Buyers who plan to stay in their homes should see those gains, but "people who purchased last year with the intent of flipping are likely to get burned," he said. From 1968 through 2000, median sales prices rose about 6.2% annually, while the consumer price index rose at a 5.1% annual rate. Consumer prices excluding shelter costs have risen 4.4% in the past year. The real estate group is forecasting existing home sales to fall 7.6% in 2006 and a further 1.7% next year. New homes sales are expected to fall 16.1% in 2006 and 7.1% in 2007. Housing starts are projected to fall 9.6% this year and 9.8% next.
The forecasts are slightly below the group's projections from a month ago. Compared with the group's forecasts at the beginning of the year, the expected declines in existing-home sales and housing starts for 2006 are about twice what was expected, and the expected drop in new-home sales for 2006 is about three times as severe.
Miami Real Estate - Real Estate Press
WASHINGTON -- The National Association of Realtors announced that US home prices will fall temporarily as the housing market correct.
Prices should bounce higher in a few months as the market works through a build in housing inventory. Median existing-home sales prices should rise about 2.8% this year and 2.2% next year, the realtors said in their monthly economic outlook. Median new-home prices are expected to rise 0.2% in 2006 and 2.4% in 2007.
Realtors project that after adjusting for inflation, median home prices would be lower at the end of 2007 than they are now, the.
Existing-home prices have risen at an average of 9.6% annually in the past four years, well ahead of the inflation rate. New-home prices rose 13.3% in 2004 and 9% in 2005. "This year sales are slowing, homes are plentiful and sellers are negotiating," Lereah said. "Under these conditions, we'll probably see prices dip temporarily below year-ago levels as the market works through a build up in housing inventory."
Other economists expect declines or little gain in home prices next year. Twenty-five of 48 economists surveyed in the Wall Street Journal's monthly survey said they expect little or no growth in the Office of Federal Housing Enterprise Oversight's home price index in 2007, the newspaper reported Thursday in its online edition.
The average gain in home prices predicted by the economists in the survey was 0.4%. The OFHEO index has never shown an annual decline in its 30-year history. The smallest gain ever was 1.3% in 1991. See full story on the latest OFHEO release.
Lereah said home prices typically appreciate at the rate of inflation, plus one or two percentage points. Buyers who plan to stay in their homes should see those gains, but "people who purchased last year with the intent of flipping are likely to get burned," he said. From 1968 through 2000, median sales prices rose about 6.2% annually, while the consumer price index rose at a 5.1% annual rate. Consumer prices excluding shelter costs have risen 4.4% in the past year. The real estate group is forecasting existing home sales to fall 7.6% in 2006 and a further 1.7% next year. New homes sales are expected to fall 16.1% in 2006 and 7.1% in 2007. Housing starts are projected to fall 9.6% this year and 9.8% next.
The forecasts are slightly below the group's projections from a month ago. Compared with the group's forecasts at the beginning of the year, the expected declines in existing-home sales and housing starts for 2006 are about twice what was expected, and the expected drop in new-home sales for 2006 is about three times as severe.
Miami Real Estate - Real Estate Press
Tuesday, 05 September 2006
Over the next year or so, real market begins to soften thus, potential buyers should look for more than beachfront location, nearby golf courses or even good schools to determine their investment will be a smart one.
Housing data from the U.S. census shows that the metro areas that are home to healthy technology, manufacturing, entertainment, or financial-services companies, as well as big employers like top universities, enjoy equally healthy property values.
Areas such as San Jose, San Francisco, and Anaheim have buyers paying nine times their median incomes on new homes. At $744,500, the San Jose/Sunnyvale/Santa Clara (Calif.) metropolitan statistical area has the highest median home sales price in the country, according to the National Association of Realtors. The reason, says Mark Zandi, chief economist for Moody's Economy.com, is that "these local economies are among the nation's most productive. Housing values are driven by the activity on the land."
Miami Real Estate - Real Estate Press
Over the next year or so, real market begins to soften thus, potential buyers should look for more than beachfront location, nearby golf courses or even good schools to determine their investment will be a smart one.
Housing data from the U.S. census shows that the metro areas that are home to healthy technology, manufacturing, entertainment, or financial-services companies, as well as big employers like top universities, enjoy equally healthy property values.
Areas such as San Jose, San Francisco, and Anaheim have buyers paying nine times their median incomes on new homes. At $744,500, the San Jose/Sunnyvale/Santa Clara (Calif.) metropolitan statistical area has the highest median home sales price in the country, according to the National Association of Realtors. The reason, says Mark Zandi, chief economist for Moody's Economy.com, is that "these local economies are among the nation's most productive. Housing values are driven by the activity on the land."
Miami Real Estate - Real Estate Press