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Tech Tips For The Busy Real Estate Agent

Posted by Pam Maglione on September 24, 2013 at 6:43am

There is no denying the fact that technology has continually shaped everything that we know of now. Aside from affecting consumerism, one massive impact is continually being felt in the real estate realm. Today, real estate agencies are becoming more visible online. The Internet has become a huge factor in advancing its clout even when goals and objectives are locally concentrated. From virtual assistants to interactive websites, iPads and SmartPhones, and needed thingamajigs, “tech-cessorizing” your real estate wardrobe is no longer just an option but a must.

For a real estate agency to standout in a highly volatile market, these tech-savvy tips must be carefully considered to ensure productivity, reliability, transparency and sustainability.

1. Perfect Fusion of Quality Content and Visual Design

Having an online presence is a must but the clamor does not just stop in creating a website. In order to entice potential buyers and sellers, the need to project a visually captivating web design with reliable and trustworthy content is essential. In the last two years or so, data provided on realtors’ websites are experiencing major overhaul. It is no longer just an attractive website but one that is search-engine and mobile friendly, artfully integrated with social media and blogs, easy importation of listing from MLS, and equipped with special scrolling technique that eases the use of a potential buyer or seller.

2. Going Mobile

Another significant impact in today’s high-tech realm is the continual updates on gadgets. Real estate agents, in their need to be competitive and up-to-date, must come geared with necessary tools and equipments. This is the reason why most realtors nowadays are tied up with their Smartphones and Androids, tablets and laptops, Bluetooth, hands-free headset, GPS, and so on. Communication, time management and research are critical aspects in real estate, and these tools give them wide-ranging avenues to pursue their objectives. Meeting up clients, explaining a home-buying process, making follow-ups on payments, updating oneself on current real estate market news and trends, and so on, are now geared for more mobility alongside the continued rise of portable digital technology.

3. The Rise of Cloud Computing

Cloud computing solutions have become a standard norm in many up-and-about real estate firms and independent players. This practice allows expansion of your office while reducing overhead and going paperless. This ensures that agents, brokerages, clients, and potential buyers or sellers gain access to software and documents online regardless of where and the devices used. When it comes to cloud computing, however, there is no such thing as a “fit-all” design. You need to carefully assess your market, work style, and other important aspects that make your business unique than the rest. This also gives rise to the success of real estate virtual assistants.

4. SEO, Social Media and PR

If you have been told that social media is everything, not anymore. Today’s online marketing aspect no longer just focus on social media platforms but rather on the integration of SEO, PR and social media. As most real estate firms, agencies and independent players become more attuned to using online platforms, keeping tabs with highly sophisticated algorithms require more qualitative content, transparent social media marketing, and targeted PR to keep your authority high.

Indeed, the continual integration of technology in real estate management and transactions has made management and tracking much easier. Technology puts them in a powerful position to initiate, compel, and put communication with their target markets on the right track. With easy access to free data on customers’ needs, purchase behavior, and concerns as well as expectations, this gives real estate agents the needed competitive advantage to provide better service and increase sales.

Top Real Estate Trends Home Sellers and Buyers Should Not Miss

Posted by Pam Maglione on August 14, 2013 at 4:09am

Today’s real estate market is continually meandering towards recovery amidst a slower-than-normal pace and an ongoing world economic distress. With almost six years of excruciating struggle, this sounds like a good deal for buyers-and-sellers, and realtors in the market. But what are the current emerging trends in the real estate market nowadays? To give you a closer perspective, here are some top trends most investors, realtors and independent home buyers and sellers have observed.

Low Mortgage Rates

As the economy slowly perks up, it is understandable for the fixed 30-year mortgage rate to nosedive. This could mean an impending increase anytime soon. But contrary to previous prediction, this will not skyrocket abruptly. The Federal Reserve is wise enough to keep it low for at least the whole year to help hasten recovery in the housing market. As it scale back its stimulus program, expect rates to gradually rise but, as a rule, never at an abrupt pace. For buyers, this could mean that now is a great time to buy your dream home.

Dynamic Bidding Wars

With the purported recovery, bidding wars have become even more dynamic and forceful in various places like Southern California, Seattle, Boston, New York and Washington. This has, however, shown a decline in other states like Pennsylvania, Maryland and Baltimore. But with the ever fluctuating norm of the real estate market and the economy as a whole, dynamism of bidding wars has great rely on present locale situation.

Flexible Tenure and Adaptability

Before the economic upheavals, buyers are expected to stay in their purchased homes for a certain amount of time. Current trend, however, has shown that almost half of home buyers do not have clear expectations on their tenure in a particular property. As economy continually shifts, so does the mentality of a home buyer. With this, sellers must ensure to market their homes according to what a buyer needs taking into consideration a buyer’s future needs. You might want to promote flexible space characteristics like a convertible garage or basement.

Increase Demand from Married Couples

The current driving force in home buying lies on the hands of married couples who are not necessarily first-time buyers. This could be affected by the sudden shift in the economy and employment market. For sellers, staging a property that appeals to couples will definitely increase its appeal.

A Steady Influx of Renters

Unlike couples, the growing number of yuppies escaping their parent’s overcrowded basements and extended garage pave the way for the rise of demand on rental properties. As young people start moving back into the employment market brought by an improving economy, moving out of the family homes has become a norm steadily giving rise to a lucrative rental business. For sellers who are uncertain on their decision, renting out their property can be a good opportunity.

Rise of City High Rise Living

Whether the real estate market dip low or jumps up, the demand for high rise living like condominiums continually climbs at a steady pace as cities are becoming more compacted. The problem in space and more employment pouring in to these niche locations pave the way for accelerating demands and prices in condominiums. For sellers this could be a great time to invest as it can both capture both renter and buyer markets.

Consistent Rise of Digital Marketing

Of course, reliance on online trend persistently continues as the top search engine for both buyers and sellers. Digital data has become the most important resources of information. This also posed a good opportunity for realtors and private sellers as online marketing is much cheaper and wider in scope.

Let these real estate marketing trends give you a heads-up on where to put your investment. Finding which markets or sectors offer the best incentive to your hard-earned money can be quite challenging. With steadfast expectation and a competent realtor handy, home buyers and sellers can productively manage sudden shift on these trends to their advantage.

A quick summary: 2012 finished strong ending up 8.8% over 2011 when measuring by average Price Per Sq. Ft. and 11.7 % when measuring by average sale price. There are reports of 15% so I want to clarif

Posted by Robert Page on January 20, 2013 at 8:04pm

A quick summary:

2012 finished strong ending up 8.8% over 2011 when measuring by average Price Per Sq. Ft. and 11.7 % when measuring by average sale price. There are reports of 15% so I want to clarify that my reports are based on the following:

Residential Single Family Residences under 1 acre in Bend

I exclude the following from the report: Townhomes, Condos, all manufactured homes, lot size over an acre.

Number of sales is up by 17.5% and home size is on the rise again. See table 1

Average sale price as a percentage of original list price remains strong at 95%.

Sale price as a percentage of current list price remains strong at 98.3%. Table 2

There are 7 charts total and 2 tables. Each designed to give a unique perspective of our market. Charts 3 6 and 7 show the most drastic change in my mind but I’ll let you judge them for yourself.

http://www.centralorproperty.com/Central,ORTrends.html

Unless something drastic happens which seems to be increasingly possible these days and if current inventory trends continue, expect 2013 to be another strong year for Real Estate in Bend as the rest of the story continues to be the shrinking supply of inventory… Speaking of which, we’ll take a look at inventory trends next report.

Below is a quick summary. Certainly take a look at the charts to see the trends and historical data to put it all into context.

FYI: last report all trends were up except for number of sales 3^rd quarter over 2^nd quarter

View charts and tables attached to see more detailed reports

Price/sq ft

4th Quarter 2012 over 4th Quarter 2011: UP

4th Quarter 2012 over 3rd Quarter 2012 Even

2012 YTD over 2011. UP

Home Size

4th Quarter 2012 over 4th Quarter 2011: UP

4th Quarter 2012 over 3rd Quarter 2012: UP

Number of Sales

4th Quarter 2012 over 4^th Quarter 2011: UP

4th Quarter 2012 over 3rd Quarter 2012: Down

Many sources quote Median sale price and/or average sale price. View the tables to see how these values can paint a different picture of the market.

View charts and tables to see other market measures:

http://www.centralorproperty.com/Central,ORTrends.html

We typically expect MLS inventory in the 4th to quarter begin dropping but boy howdy, inventory levels really dropped this year! We are at the lowest level since starting this project in 2009 and on a

Posted by Robert Page on December 22, 2012 at 5:46pm

We typically expect MLS inventory in the 4^th to quarter begin dropping but boy howdy, inventory levels really dropped this year! We are at the lowest level since starting this project in 2009 and on a long-term downward trajectory in all three segments of sale type.

To see a graphic illustration of this trend view the charts and tables: http://www.centralorproperty.com/Central,ORTrends.html

Reminder: the charts and tables do not include bare land, multi-family homes, time shares or mobile homes without land.

Bank Owned (REO) inventory remains but a fraction of total inventory in Bend and Redmond. Total REO inventory is down approx. 85% below peak levels.

Future availability of this segment remains uncertain as government intervention and the developing reluctance of lenders/servicers to foreclose in the first place or release for sale their current inventory has slowed the flow of these properties to the market.

The continuing saga of the fate and actual size of this “shadow inventory” I believe will continue to be shrouded in uncertainty for quite some time. What we do know, is most homes for sale in this segment sell quickly.

Short sale inventory continues the long-term slide as well. Total Short Sale inventory is also down approx. 85% below peak levels.

The Mortgage Debt Relief Forgiveness Act expires in just a few weeks and may have slowed down this segment. Most “experts” believe the act will be extended and retroactive if extended after the deadline.

Of potentially equal importance I believe, in my face to face experience with most distressed home-owners they have no intention of short selling or even letting go of their homes in any way. What happens with the distressed homeowner segment whether it is short selling, foreclosure, loan re-modification or some other form of settlement will be pivotal to future market direction.

“Non-Distressed”/“Traditional” Inventory is roughly half of what it was at peak levels since starting this project in 2009. The downward trend is less pronounced than short sales and REO but a significant downward trend nonetheless. An overwhelming percentage of this segment experiences long marketing times, expirations and terminations as most list prices continue to be misaligned with what current market conditions will bear.

Looking forward, we are right in the middle of the seasonal low inventory period and typically expect tighter supplies in the coming months. The list-to-sold ratios however, indicate future MLS inventory will fall below seasonal levels of the past 3 yrs.http://www.centralorproperty.com/Central,ORTrends.html

We are also near the typical end of year jump in expirations which will put a big, typically short-term dent in inventory if this is a typical year. Whatever that is these days!

Final Thoughts

Our market has definitely strengthened. Some might argue it is an artificial development while others will argue it is a sign of recovery. What can be said for certain is we have experienced a long-term and significant trend of declining inventory accompanied by price firming and appreciation in many areas throughout Bend, Redmond and Central Oregon.

Supply is tight and appears this will be the case at least in the near-term.

Merry Christmas!!!!!!!!

List to Sold Ratios Continue to Improve

Posted by Robert Page on September 16, 2012 at 5:36pm

Made some changes to the charts to make it easier to see trends as well as changes in variation; change is definitely apparent.

List to sold ratios continue their long-term decline. Down in 2012 from 2011; down the last 3 months as we near the fourth quarter a time when, since 2007 (except 2009) they drop even further. 2012 has already seen the lowest list to sold ratios since the beginning of this project in 2007. If the 4^th quarter trend repeats expect even lower ratios and consequently lower inventory levels in the months to come in central Oregon.

Getting back on my variation soap box again, variation has drastically decreased as well, meaning our little Real Estate process here in Central Oregon is getting closer and closer to some semblance of predictability, at least for now anyway J

I completed the July Sales data but didn’t report it. If you have time, wander over to the website and check it out. July sales were pretty impressive. I don’t usually get real excited about monthly reporting because they can be so see-saw; instead we have strong looking upward trend.

The table shows a strong 3^rd quarter for appreciation so far in average, median and price/ sq ft price measures.

For a more comprehensive understanding of our market see additional charts and tables covering inventory, sale and list prices etc.:

http://www.centralorproperty.com/Central,ORTrends.html

Also now on:

http://centralorhomesales.com/inventory.asp

Is Search An Early Market Indicator

Posted by Howard Bell on February 23, 2011 at 1:22pm

Real Estate Porn
The search bunny keeps on going

Its interesting that online search for real estate is as strong as ever. Sales are miserable, people are afraid to buy. They no longer know what value and they have no job security. So, why is search so strong. Realtor.com President, Errol Samuelson notes that Online search is a critical measure of interest in real estate, especially now that more than 90 percent of buyers search for their homes online. So what can we glean from data mining search. Well, it turns out quite a lot.

Search As An Economic Indicator

Studys that indicate that the answer is yes, search can indicate future interest. The National Academy of Sciences of the United States of America (PNAS) recently published a study and concluded that predictive power of search can predict activity several weeks in advance.

Where Are The Top Ten
Sun Belt Still Strong

The top 10 most searched real estate markets in 2010 were established based on the number of visitors that viewed properties in each Metro Service Area (MSA) in the United States from January 2010 to December 2010 on Realtor.com. Despite changing market conditions in 2010, the nation’s top search destinations remained remarkably stable and focused on the sunshine states of California, Nevada, Florida, Texas and Arizona.

Bottom Fishing?
Or Just Entertainment?

Despite changing market conditions in 2010, the nation’s most searched destinations remained remarkably consistent, focusing on the sunshine states of California, Nevada, Florida, Texas and Arizona. Whether the strong interest in Real Estate is just window shopping or whether these states will seriously pop first when the buying public feels this is the bottom remains to be seen. Be interesting to see if the heavy search points to an early opportunity.

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Stock Market Insights For The Housing Markets

Posted by Howard Bell on June 1, 2010 at 4:23pm

Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 7.6 percent to a seasonally adjusted annual rate of 5.77 million units in April from an upwardly revised 5.36 million in March, and are 22.8 percent higher than the 4.70 million-unit pace in April 2009. Monthly sales rose 7.0 percent in March.

The upswing in April existing-home sales was expected because of the tax credit inducement, and no doubt there will be some temporary fallback in the months immediately after it expires, but other factors also are supporting the market,” the chief economist for NAR, Lawrence Yun said. “For people who were on the sidelines, there’s been a return of buyer confidence with stabilizing home prices, an improving economy and mortgage interest rates that remain historically low.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 5.10 percent in April from 4.97 percent in March; the rate was 4.91 percent in April 2009.

Total housing inventory at the end of April rose 11.5 percent to 4.04 million existing homes available for sale, which represents an 8.4-month supply2 at the current sales pace, up from an 8.1-month supply in March. Raw unsold inventory is 2.7 percent above a year ago, but remains 11.6 percent below the record of 4.58 million in July 2008. see chart

Regions

1. Northeast: Existing-home sales surged 21.1% and are 41.6% higher than a year ago.
2. Midwest: Existing-home sales rose 9.9% and are 29.1% above a year ago
3. The South: Existing-home sales increased 8.6%
4. The West: Existing-home sales fell 6.2% are 5.2 percent above a year ago.

In Stock Markets
Volume Precedes Price
This simply means that volume will indicate the end of an uptrend or a downtrend before the price changes indicate it. In the real estate markets price will not begin to firm until volume begins to decline. If this holds true the NAR study indicating increasing sales volume and continued price drops may be the early beginnings of a market bottom. The change in trend will begin in earnest when volume shrinks, until then we can expect prices to decline

Bouncing Along The Bottom
Whats it feel like

Well a lot like this. Its a place where asset price action is no longer declining as a long term trend. Price seems to go up and then back down. It simply means that not all the bad news is out of the markets and that healthier signs appear and are then clouded by another set of negative circumstances.

For example the EU crises precipitated by Greece caused money to flow out of the EU. This caused rates to drop in the US. It also raised the value of the dollar, making our exports more expensive to Europeans. Since four of our top ten trading partners are in Europe this is likely to impact job growth. So, cheaper mortgages might incentivize some people, but job uncertainty might disincentivize other people....not all the bad news has washed out.

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Case Shiller Price Observations

Posted by Howard Bell on May 28, 2010 at 3:41pm

The recent Case Shiller report shows price declines in front of the tax credit completion...The index gives us a slight 0.38% decline in the top ten market composite. Year over year the index is up 3.15% when compared to March 09. Recent strong price moves will come to a serious halt because the tax stimulus is behind us. The silver lining in this is that it proves demand is there, just waiting for the right price and for some of this historic uncertainty to settle. This chart Via Redfin shows the 2009 price spike . Price momentum is quite impressive and the recent downturn looks reasonable for at least San Francisco, San Diego LA, Washington and Boston.

These low rates will help to elevate home-buyer affordability and soften the effects of the sunset of the home-buyer tax credit,” said Frank Nothaft, Freddie Mac vice president and chief economist.

Beware the inventory surge
In our immediate future is a large wave of potential foreclosures as banks begin to off load inventory they have been holding back. Home owners also are placing their homes for sale at hefty pace. Many waiting for better times before listing are now beginning to do so. The supply surge increase the likelihood that will continue to see price declines as sales volume continues to increase. Most experts still agree that we are bouncing along the bottom, meaning we are no longer in a steep decline and that will have to do as the definition of price stabilization.

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Housing: Where Are We Now

Posted by Howard Bell on May 26, 2010 at 5:37pm

With house prices expected to slid and unemployment to rise substantially further, this third foreclosure wave will grow larger. If house prices fallanother 10% over the coming year,as Moody’s Economy.com currently forecasts, an estimated 18.6 million homeowners could be underwater.

More to Come
Even if the economy stabilizes in 2010 as expected, defaults will remain elevated long afterward. More large payment resets are due to hit so-called option ARMs. Most of these mortgages were designed on the 5-25 plan: five years of fixed payments and rates pegged to Libor after that. All the option ARMs issued at the peak of the housing bubble in 2005 and 2006 will thus reset for the first time in 2010 and 2011.

Case Shiller
Prices of single-family homes fell 0.5 percent from February, which is the sixth month-on-month drop, seems prices should have spiked from record low mortgage rates. Unless the crises in Europe remains huge, mortgage rates which are benefiting from a flight from the Euro, will rise sooner trather than later. This is a window of low cost money for buyers and refiers. Its a sale! And if this isnt causing a spike in prices then inventory and psychology and persistently the villains. Now that the tax incentives have ended, there seems to be no reason to expect prices to rise in 2010.

Moodys
Foreclosures are going to have a fairly negative impact on the housing market through the beginning of next year," she predicts, adding that housing prices could drop another 5 percent between now and the end of the year.

NAR
NAR says that total housing inventory soared 11.5 percent at the end of April from a month earlier. This means that it would take 8.4 months to sell all the properties, if sales continue at the current pace. High inventories are likely to prevent big price gains over the next year or two.

Long Term
the upside is in view.
The long-term recovery seems to be in place. see Moodys chart National prices were up 2.3 percent from last year. Some cities are sloging through their foreclosure mess, San Diego and San Francisco, up 1.5 percent each reduced their share of foreclosure inventory.

U.S. sales of new homes jumped nearly 15% in April to the highest level since May 2008 as homebuyers rushed to meet the deadline to qualify for tax credits. Sales jumped 14.8% in April to a seasonally adjusted annual rate of 504,000, the Commerce Department reported Wednesday. This follows an almost 30% gain in March. Everyone expects these numbers to crash next month, the tax incentives are gone. Mortgage Bankers Association already reports that reported that purchase applications plummeted. But it does point to a lot of buyer appetite out there.

Mark Zandi, Chief Economist for moodyseconomy.com says that this is the time to buy, even though prices may continue to drop. Now, Zandi says, is best time to buy in a quarter-century, thanks to low mortgage rates, low prices and a recovery in place.

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The Case for Recovery

Posted by Howard Bell on April 28, 2010 at 9:36am

We Have One, But It Wont Feel Like it

Case-Shiller released their index of home prices in 20 cities and it rose 0.6 percent in February over last year. Existing home prices advanced 0.4%, as sales climbed for the first time in four months.

We’ve turned a corner with housing," said economist Karl Case, who with Robert Shiller created the index. "As long as mortgage rates don’t jump and employment continues to improve, we should see housing play a key role in preventing a double-dip recession. Via Seeking Alpha

Monetary Policy; The Fed kept monetary placed a hold stating that conditions requiring low rates were likely to remain for an extended period.

Inflation: The economy is in a sweet spot with solid growth and inflation is low. Why the Fed is keeping rates low, to put behind us several quarters of growth and stimulate job growth and consumer confidence.

Counter Trends

Jobs: The economy will still have to expand at a decent rate for several more quarters before we get decent job growth

Defaults: 13.6 million homeowners have no equity or negative equity and therefore have little incentive to continue to pay high monthly mortgage debt.

Steep Losses: It will take quite a while to dig out. Note: The chart above compares this very steep decline with the last bust in the 1990's. See chart courtesy of papereconomy.com

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Case Shiller in Context

Posted by Howard Bell on April 11, 2010 at 9:46am

Prices are now up almost 4 percent from the bottom in May 2009, but off 30 percent from May 2006, largely considered the peak of the housing boom. The 20-city index was off just 0.7 percent from this time last year. The smallest decline in almost three years.

Case Shiller index tells us we are in a bottoming process, where prices will continue to stabilize and attract buyers. However the paper economy chart, comparing the 1990s housing bust to the present makes two points vividly. First, the size of this decline and second, the 1990s bust took eight years to return to normalcy, measured from peak to peak

Fed says goodby to MBS
Interest Rates Going Up
The Fed has been the lender of last resort, buying up paper nobody wanted, providing liquidity to mortgage-backed securities and keeping the whole thing afloat. However, the Fed declares this a self sustaining recovery and financial markets stable and profitable. Private investors, willing to purchase government backed mortgages will requrie higher rates. Its not clear to anyone how much of this mortgage backed debt is viable. Investors will require higher rates for mortgage backed securities to look attractive. Mortgage Bankers association predicts 6% rate years and NAR looks to 6.5% in 2011

Fed says Goodby To Tax Credit
Sales Driver

The homebuyer tax credit that gives first time home buyers up to an $8000 tax credit and repeat buyers up to $6500 is set to expire the end of April. You must be under contract by April 30th and close by June 30th to qualify. In the short term the homebuyer tax credit and spring markets are bringing buyers to the table. MBA Purchase Applications index rose 6.8% for the week, confirming solid activity.

Fed Says Hello Sustainable Recovery

The economy remains in a transitional phase from a period that depended on support of public sector programs to a period of resumed growth based on private spending, aqccording to Dennis Lockhart President of the Atlanta Fed President. Read we are off the lifeline and looking to the markets to gradually act more normally.

We created jobs! First time in two years, True a total of 160,000 jobs (including temp jobs) is a far cry from the 8 million we have lost, but its solid proof that we are on the right road.

Rising home prices also could boost consumer optimism. with the tax credit program ending we will likley see lower home prices and higher sales volumn. Prices are reaching equilibrium in some parts of the country, according to moodys.com. Looking at the 1990s-era comparison, even after prices stabilized, housing had a long slog ahead. Our economy is driven by consumer spending, so high unemployment means less consumer spending.

Home prices and sales volume will be held hostage to the economic recovery and will begin in earnest when job creation does so. On a positive note, with big headwinds in front, we are at the beginning of a long term healing process.

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Green Home Trends: 2010

Posted by Howard Bell on February 16, 2010 at 4:34pm

The key to mainstreaming green homes is to make sure that consumers understand the value of green upgrades — how cost-effective energy efficiency can be in the long run. Consumers want homes that are environmentally friendly and home values should reflect the increased savings.

Better Homes and Gardens

Recent poll results of 2,342 people who plan to purchase or do a major home improvement in 2010 show (numbers have been rounded):

2% of consumers are planning to have high-efficiency heating and cooling in their next home
3% are planning to have high-efficiency appliances
3% will have geo-thermal heat
5% said energy-efficient heating and cooling will be more important to them
6% said Energy Star appliances will be more important

Appraising Green

Appraisals need to better reflect the value added to energy efficient green upgrades. Legislation is pending which will require the consideration of any renewable energy sources, or energy-efficiency or energy-conserving improvements. Appraisers will tell you they have been considering green improvements for 15 years, typically, double paned windows, insulation and solar hot water heaters. The value normally attributed is the installation cost. But that is just the beginning of the direct savings to the new owner. The ongoing savings of operating a greener home is not being reflected in the appraisal and yet it can be significant when compared to a home that isn’t energy efficient.

To reflect true value buyers need to recognize the increase savings when comparing homes. Appraisers will tell you that when the energy cost savings can be documented, home buyers are more willing to pay a premium. They understand the lower monthly cost of ownership and better resale value.

Green Marketing Incentives

Most state energy and public utilities offer incentives, rebates and tax breaks for energy efficient upgrades. Realtors should suggest that sellers take advantage of these incentives. Consumers clearly want greener homes and agencies offering rebates can document the projected savings. This can be a powerful sales incentive in a market where value
is king.

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Housings Weak Recovery: Lets Follow The Money

Posted by Howard Bell on January 6, 2010 at 5:09pm

Quarterly reports are out. NAR, Case Shiller, Consumer Confidence reports all indicate that the housing recovery is faltering to flat. Much of the Govt supports will be slowly exiting as the Fed tests the normal functions of an economy replace Federal aid.ResidentialCase Shiller and NAR reports show continued weakness and everyone is wondering whether the recovery is waning. Case Shiller notes that the rate of decline in home prices slowed in October from the previous month, and prices remain flat after the spring and summer gains. Home price Indices of its its 10-city and 20-city composite indices declined 6.4% and 7.3%, putting home prices at 2003 levels. A flat report is not as bad as much of the last two years, but some Govt programs are being phased out see chartNAR site points out that on a month-to -month basis,only seven of the 20 cities showed improvement. NARs data for November showed prices down 4.3% year-over-year. Foreclosures continue to be the problem, making up 30% of the third quarter’s home purchase.Moodys points out that there are 3 million more homes in the pipe and that another 3 million are 30-60 days late. These homes are in a foreclosure pattern. New Home Sales: The government reported that sales of new homes dropped a sharp 11.3 percent, an indication that supply is still greater than demand.ApartmentsThe apartment market is showing signs of improvement, according to the National Multi Housing Council’s latest Quarterly Survey of Apartment Market Conditions. Although the survey still indicates higher vacancies and lower rents, we see increased sales activity and greater availability of debt and equity capital compared with three months ago. Apartments have long been considered the better investment, partly because there is financing available and they didnt participate in the building boom of single family homesFollow The MoneyThe American Recovery and Investment Act of 2009Will pump more economic stimulus money into federally subsidized apartment units, while HUD’s budget proposal for next year seeks another $1.8 billion for construction of rental housing.GreenHUD and the U.S. Department of Energy are working together to offer more financial incentives for owners to retrofit properties for energy efficiency. Another economic stimulus plan enacted earlier this year provided funds for green retrofits. Larger property owners of commercial buildings including apartment complexes whereconservation of energy had the greatest impact. Hopefully, some of this money will trickle down to smaller owners.Fannie and FreddieCongress had placed a cap on spending of $200 billion dollars on each. On Christmas eve, Obama lifted the cap through 2012, giving the two quasi public institutions a blank check. I think this points very clearly to the next big wave of foreclosure that will stem from the Alt A and commercial mortgage recasts that will be coming due between now and 2012. A blank check (read big money problems) is whats next.The Stock MarketREITSThe Dow Jones Equity All REIT Total Return Index is up 31% this year, reversing a 38% decline in 2008, beating the S&P 500 by 25%. Given all the flat to downright ugly news still coming out it seems counter intuitive that real estate funds would be doing so well.They have been raising money issuing new shares and selling property whenever they can. In short, they have been raising money for whats expected to be a generational opportunity in good properties coming on the market at great prices. The ishares industrial/office and retail REITS are up 10.7% and 11.2% respectively in November/December alone. Even mortgage REITS are up 3.8% for the same period. Heres what they are looking at...Real Estate RubbleBloomberg reports that commercial property prices have fallen by 30 percent to 50 percent wiping out the equity in most debt financed real estate deals since 2005. This equals as much as 54 percent of the $1.4 trillion in loans that will come due in four years, according to Randall Zisler, chief executive officer of Zisler Capital Partners LLC (via Bloomberg News).Mr. Zisler goes on to say that much of the debt is likely worth about 50 percent of par. Many banks will end up insolvent as they reduce the value of their holdings, he wrote, adding that regional and community lenders are especially vulnerable.Stock markets are forward looking mechanisms and the REITS are looking passed the problem to great future buying opportunities. If the banks are holding so much bad paper, then it will be taxpayer money (those blank checks) and private investment money (REITs) likely final owners of all this real estate rubble. I know that investors will cherry pick and to drive hard deals to profit. I wonder if that leaves us, the taxpayers, to buy whats left.... Its all in the oversightThanks for Readingwww.yourpropertypath.comRelated ArticlesNAR: Existing Home Sales Report Should You Stop Paying Your Mortgage Stock Market Views On The Housing Recovery The Coming Mortgage Debt Reduction Programs

Housings Weak Recovery: Lets Follow The Money

Posted by Howard Bell on January 2, 2010 at 4:35pm

Quarterly reports are out. NAR, Case Shiller, Consumer Confidence reports all indicate that the housing recovery is faltering to flat. Much of the Govt supports will be slowly exiting as the Fed tests the normal functions of an economy replace Federal aid.ResidentialCase Shiller and NAR reports show continued weakness and everyone is wondering whether the recovery is waning. Case Shiller notes that the rate of decline in home prices slowed in October from the previous month, and prices remain flat after the spring and summer gains. Home price Indices of its its 10-city and 20-city composite indices declined 6.4% and 7.3%, putting home prices at 2003 levels. A flat report is not as bad as much of the last two years, but some Govt programs are being phased out.NAR site points out that on a month-to -month basis,only seven of the 20 cities showed improvement. NARs data for November showed prices down 4.3% year-over-year. Foreclosures continue to be the problem, making up 30% of the third quarter’s home purchase.Moodys points out that there are 3 million more homes in the pipe and that another 3 million are 30-60 days late. These homes are in a foreclosure pattern. New Home Sales: The government reported that sales of new homes dropped a sharp 11.3 percent, an indication that supply is still greater than demand.ApartmentsThe apartment market is showing signs of improvement, according to the National Multi Housing Council’s latest Quarterly Survey of Apartment Market Conditions. Although the survey still indicates higher vacancies and lower rents, we see increased sales activity and greater availability of debt and equity capital compared with three months ago. Apartments have long been considered the better investment, partly because there is financing available and they didnt participate in the building boom of single family homesFollow The MoneyThe American Recovery and Investment Act of 2009Will pump more economic stimulus money into federally subsidized apartment units, while HUD’s budget proposal for next year seeks another $1.8 billion for construction of rental housing.GreenHUD and the U.S. Department of Energy are working together to offer more financial incentives for owners to retrofit properties for energy efficiency. Another economic stimulus plan enacted earlier this year provided funds for green retrofits. Larger property owners of commercial buildings including apartment complexes whereconservation of energy had the greatest impact. Hopefully, some of this money will trickle down to smaller owners.Fannie and FreddieCongress had placed a cap on spending of $200 billion dollars on each. On Christmas eve, Obama lifted the cap through 2012, giving the two quasi public institutions a blank check. I think this points very clearly to the next big wave of foreclosure that will stem from the Alt A and commercial mortgage recasts that will be coming due between now and 2012. A blank check (read big money problems) is whats next.The Stock MarketREITSThe Dow Jones Equity All REIT Total Return Index is up 31% this year, reversing a 38% decline in 2008, beating the S&P 500 by 25%. Given all the flat to downright ugly news still coming out it seems counter intuitive that real estate funds would be doing so well.They have been raising money issuing new shares and selling property whenever they can. In short, they have been raising money for whats expected to be a generational opportunity in good properties coming on the market at great prices. The ishares industrial/office and retail REITS are up 10.7% and 11.2% respectively in November/December alone. Even mortgage REITS are up 3.8% for the same period. Heres what they are looking at...Real Estate RubbleBloomberg reports that commercial property prices have fallen by 30 percent to 50 percent wiping out the equity in most debt financed real estate deals since 2005. This equals as much as 54 percent of the $1.4 trillion in loans that will come due in four years, according to Randall Zisler, chief executive officer of Zisler Capital Partners LLC (via Bloomberg News).Mr. Zisler goes on to say that much of the debt is likely worth about 50 percent of par. Many banks will end up insolvent as they reduce the value of their holdings, he wrote, adding that regional and community lenders are especially vulnerable.Stock markets are forward looking mechanisms and the REITS are looking passed the problem to great future buying opportunities. If the banks are holding so much bad paper, then it will be taxpayer money (those blank checks) and private investment money (REITs) likely final owners of all this real estate rubble. I know that investors will cherry pick and to drive hard deals to profit. I wonder if that leaves us, the taxpayers, to buy whats left.... Its all in the oversightThanks for Readingwww.yourpropertypath.comRelated ArticlesNAR: Existing Home Sales Report Should You Stop Paying Your Mortgage Stock Market Views On The Housing Recovery The Coming Mortgage Debt Reduction Programs

Chase Finds 16% of Mods Are 'Permanent’?

Posted by Michael Howard on December 13, 2009 at 6:17am

Chase Finds 16% of Mods Are 'Permanent’?A recent article highlights that JPMorgan Chase has over 140,000 borrowers in the HAMP program currently, and that only 16% will be or have been approved for “permanent” modification as they announced in Congress. Additionally only 29% of those made all of their payments on time during their 3 month trial and so now are ineligible for permanent mods. Begging the question, so is even the 16% number accurate?This along with other examples of the fallacy of HAMP I have given in the past conjures memories of an advertisement from my youth… “Where’s the Beef”?HAMP sounds nice, People love acronyms, best intentions and all but like so many things in our society these days no one wants to look beyond the surface. We long to be placated. We want to feel better, eat our government endorsed Hostess products and watch dancing with the stars until our Ambien kicks in. All you are required to do is look at two factors to determine HAMP was NEVER going to work as it is currently configured.1. Out of control unemployment. The numbers are staggering and nowhere close to reality when one factors the numbers of people still employed but on reduced hours, or those that have fallen of the unemployment rolls entirely. You can’t qualify if you have no, or even reduced income.2. The amount of mortgages that are upside down more than 10-20% allowable. Borrowers in California, Florida, Arizona and Nevada are doomed even before they announced the program.In all actuality the servicers are making only a half hearted effort in these programs. The lenders know their hands are tied, Congress and the Administration know this as well. The only ones who don’t? John and Sally Homeowner in Eugene Oregon who actually need and think they are going to get a mod. Adding more fuel to the noxious mix of those who know, the vultures who prey on John and Sally. Telling them their lender will take too long, work with us and we will get you your mod…just give us $995. They believe this right up until me or someone like me shows up at the door with the sheriff. Julia Gordon from the Center for Responsible Lending said as much in her address to congress, saying that HAMP had the “theoretical potential” to help but servicers either would not or could not do what is asked of them.What to do? Do we as a nation bite the bullet and “bailout” the borrowers as well. Should we do a white board erase of all current mortgages and start over as some have suggested? Highly unlikely! Can you imagine the lawsuits generated by those who have previously been foreclosed on and are left to wonder “why was I not bailed out”?I am interested in this group’s insight. What would you propose? I have outlined my ideas here in prior blogs so I won’t beat that drum too loudly but these are the basics (how we create jobs is a blog post unto its own).1. Mod only those who can, and quickly. Release all other inventory on to the market regardless of how far values fall.2. Waive the 3 year restriction on all foreclosed or bankrupted borrowers and allow those that are TRULY qualified to re-enter the market.3. Lift restrictions on the amount of properties investors can purchase.What say you?

NAR Report Third Quarter

Posted by Howard Bell on November 15, 2009 at 9:31am

Sales Up Prices DownThis same story has been playing our for quite a while now. The trend towards lower prices will probably continue even as the recession winds down. Continuing job loss, a weak recovery and real problems in all real estate sectors, now focused on commercial property and Alt A high end homes, should keep a lid on prices. That said people are beginning to feel good again, or at least less wary. They are stepping out and buying homes and that is a good good sign. see chart hereExisting-Home Sales Surge While Price ModerateMost states saw rising existing-home sales in the third quarter, with price declines in many metro areas, according to the latest survey by the National Association of Realtors.NAR reports that total state existing-home sales of single-family and condos, increased 11.4 percent and are now 5.9 percent higher than the third quarter of 2008. Sales increased in 45 states and 28 states saw double-digit gains. Year over year sales were higher in 32 states and D.C. Buyers are coming back and in some parts of California we are seeing multiple bids and homes selling for more than list.During the third quarter, 123 out of 153 metropolitan statistical areas, 2 reported lower median existing single-family home prices while 30 areas had price gainsNAR chief economist,Lawrence Yun spoke of the the tax credit. He goes on to say: We cant underestimate just how powerful a catalyst the first-time home buyer tax credit has been for the housing sector. Its given buyers the confidence they needed to get off the fence and take advantage of extremely affordable housing conditions. The buying conditions this year are the most favorable on record dating back to 1970, but the tax credit is allowing buyers to set aside any reservations about waiting for a better deal.The decline in the national median price has moderated recently, and a shrinking supply of unsold inventory suggests we are getting closer to price stabilization in many areas, but we need a steady stream of financially qualified buyers to further reduce inventory and get us to a self-sustaining market, Yun said.Soaking up supplyForeclosures will continue to come on the market, but rising sales from the expanded tax credit should stabilize home prices by next spring and help to stem future foreclosures. To be sure the numbers are mixed and some areas are experiencing reversals, but over all we are beginning to pull ourselves up out of this slump. As long as we continue to see a Fed willing to support the markets until they are strong enough to stand on their own, we should be able top avoid a double dip. Encouraging was to hear the G20 come out with a continuation of supports. This recovery is still in the hands of policy makers.Thanks for Readingwww.yourpropertypath.comRelated ArticlesHome Values Boosted by Walking Convenience The official figures indicate recession has ended Green Homes and Sales Trends

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Housings Weak Recovery: Lets Follow The Money

Housings Weak Recovery: Lets Follow The Money

Chase Finds 16% of Mods Are 'Permanent’?

NAR Report Third Quarter

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