Wednesday, November 30, 2011
Today’s market opportunity
WASHINGTON – Nov. 30, 2011 – The monthly cost of owning a home is more affordable now than in the past 15 years, and is less expensive than renting in numerous cities, according to The Wall Street Journal’s third-quarter survey.
Low home prices mixed with low mortgage rates – hovering at 4 percent or lower – create an appealing buyer’s market, analysts say. For example, buyers today have a 77 percent increase in their borrowing power compared to 1991, according to Dan Green, a loan officer with Waterstone Mortgage in Cincinnati. He says that in 1991 a $1,700 mortgage payment allowed a borrower to take out a $200,000 mortgage; today, at current interest rates, the homebuyer can get a $350,000 loan for that same monthly mortgage payment.
In 12 our of 28 cities tracked by The Wall Street Journal, monthly mortgage payments on a median-priced home – including taxes and insurance – were lower than the average rent levels.
In Atlanta, owning was the most favorable compared to renting. The monthly rent on a median-priced home there was $539 during the third quarter (with a 20 percent downpayment) compared to the average asking rent, which averaged $840, according to data provided by Marcus & Millichap.
Nationwide, apartment rents are expected to rise by about 4 percent this year, which may make the owning vs. renting picture tilt even higher, according to some analysts.
Despite the appealing housing picture for homebuyers, some continue to stay on the sidelines, unable to sell their current home, qualify for a mortgage due to the tighter credit requirements or keep a steady job, housing experts say.
Source: “Stronger Lure for Prospective Home Buyers,” The Wall Street Journal (Nov. 26, 2011)
"South Florida foreclosures", "Florida foreclosure list", "Florida housing market values", "Miami Distressed Commercial investments", "South Florida real estate deals", "Miami courthouse auctions", "Miami courthouse foreclosures", "Florida spec homes", “ Homes in Fort Lauderdale”, Homes in Pompano Beach”, “Short sales Miami”, “ REO South Florida”
Pending home sales jump in October
WASHINGTON – Nov. 30, 2011 – Pending home sales rose strongly in October and remain above year-ago levels, according to the National Association of Realtors® (NAR).
The Pending Home Sales Index (PHSI), a forward-looking indicator based on contract signings, surged 10.4 percent to 93.3 in October from 84.5 in September and is 9.2 percent above October 2010 when it stood at 85.5. The data reflects contracts but not closings.
“Home sales have been plodding along at a sub-par level while interest rates are hovering at record lows, and there is a pent-up demand from buyers who normally would have entered the market in recent years,” says Lawrence Yun, NAR chief economist. “We hope this is indicates more buyers are taking advantage of the excellent affordability conditions. Many consumers recognize that homebuyers in the past two years have had one of the lowest default rates in history. Moreover, continued inventory declines are another healthy sign for the housing market.”
The PHSI in the Northeast surged 17.7 percent to 71.3 in October and is 3.4 percent above October 2010. In the Midwest the index jumped 24.1 percent to 88.7 in October and remains 13.2 percent above a year ago. Pending home sales in the South rose 8.6 percent in October to an index of 99.5 and are 9.7 percent higher than October 2010. In the West, the index slipped 0.3 percent to 105.5 in October but is 8.1 percent above a year ago.
“Although contract signings are up, not all contracts lead to closings,” Yun says. “Many potential homebuyers inadvertently hurt their credit scores and chances of getting a mortgage through easily averted actions, such as cancelling an old credit line while taking on a new one. Such actions could unwittingly prevent buyers from obtaining a mortgage if their credit score is close the margins of qualifying – or they might get a loan but with less favorable terms.”
© 2011 Florida Realtors®
The Pending Home Sales Index (PHSI), a forward-looking indicator based on contract signings, surged 10.4 percent to 93.3 in October from 84.5 in September and is 9.2 percent above October 2010 when it stood at 85.5. The data reflects contracts but not closings.
“Home sales have been plodding along at a sub-par level while interest rates are hovering at record lows, and there is a pent-up demand from buyers who normally would have entered the market in recent years,” says Lawrence Yun, NAR chief economist. “We hope this is indicates more buyers are taking advantage of the excellent affordability conditions. Many consumers recognize that homebuyers in the past two years have had one of the lowest default rates in history. Moreover, continued inventory declines are another healthy sign for the housing market.”
The PHSI in the Northeast surged 17.7 percent to 71.3 in October and is 3.4 percent above October 2010. In the Midwest the index jumped 24.1 percent to 88.7 in October and remains 13.2 percent above a year ago. Pending home sales in the South rose 8.6 percent in October to an index of 99.5 and are 9.7 percent higher than October 2010. In the West, the index slipped 0.3 percent to 105.5 in October but is 8.1 percent above a year ago.
“Although contract signings are up, not all contracts lead to closings,” Yun says. “Many potential homebuyers inadvertently hurt their credit scores and chances of getting a mortgage through easily averted actions, such as cancelling an old credit line while taking on a new one. Such actions could unwittingly prevent buyers from obtaining a mortgage if their credit score is close the margins of qualifying – or they might get a loan but with less favorable terms.”
© 2011 Florida Realtors®
South Florida residential inventory
Compiled by Condo Vultures using the South Florida Shared Multiple Listing Service. Active listings are properties where no current sale contract exists; pending sales are properties in which a contract for sale has been executed, but not yet closed. Listing brokers control the status of a property listing
Monday, November 28, 2011
Higher loan limits transform FHA into key source of financing
Congress has raised the maximum mortgage limits for the FHA while leaving loan ceilings untouched for Fannie Mae and Freddie Mac. This may make the FHA the go-to financing option for borrowers in high-cost areas
After a year characterized by grumpy partisan gridlock, Congress came up with a Thanksgiving compromise that could change the mortgage choices of buyers and refinancers in more than 660 markets across the country: It raised maximum loan limits for the Federal Housing Administration while leaving loan ceilings untouched for Fannie Mae and Freddie Mac.
In effect, this may make FHA the go-to financing option for borrowers needing loans up to $729,750 with down payments as low as 3.5% in high-cost areas of California, the District of Columbia, New York, New Jersey and scattered counties in other states including Massachusetts, Florida and North Carolina. Fannie Mae- and Freddie Mac-eligible loans in those areas, meanwhile, stay capped at $625,500.
Equally important, the new plan raises the FHA ceilings for purchasers in hundreds of more moderate-priced markets. Seattle-area buyers' maximum FHA loan amount jumped to $567,500, while the Fannie Mae-Freddie Mac ceiling remains at $506,000. In Hartford, Conn., the limit for FHA is now $440,000, up from $320,850; Fannie and Freddie remain capped at $417,000.
Buyers with low down payments in Portland, Ore., who previously had been limited to FHA mortgages of $362,250, can borrow up to $418,750 under the new plan, $1,500 more than they can get from Fannie and Freddie, which generally require steeper down payments and higher credit scores.
The new loan ceilings in hundreds of markets are at the core of the compromise: They raise the maximum FHA loan amount in all areas of the country to 125% of the local median home-sale price, while leaving Fannie Mae's and Freddie Mac's limit at 115% of the median.
What motivated Congress to create separate-and-unequal rules that transform the FHA — traditionally a haven for moderate-income, first-time buyers with minimal cash — into a key source of financing for buyers in upper- as well as mid-bracket markets?
Nobody in Congress proposed this idea at the start. By a 60-38 vote in October, the Senate passed an amendment raising all three agencies' limits to $729,750 in high-cost areas and 125% of the median sale price elsewhere. The goal — lobbied aggressively by realty and home-building groups — was to inject needed oomph into home sales. But Republicans in the House balked at doing anything that might prolong the existence of Fannie Mae and Freddie Mac, both the targets of scathing criticism for their multibillion-dollar costs to taxpayers and big bonuses for top executives.
What ultimately emerged from the legislative scrum was the compromise penalizing Fannie Mae and Freddie Mac, while boosting FHA. House Republicans weren't enthusiastic about helping the FHA either — the agency faces its own financial challenges — but unlike Fannie and Freddie, the FHA is subject to congressional appropriations and closer oversight. Republican critics held their noses and voted for the plan.
What will this mean for buyers from now through the end of 2013, when the compromise expires?
"There's no doubt this will drive more business to FHA," said David H. Stevens, former FHA commissioner and current president and chief executive of the Mortgage Bankers Assn.
"FHA is going to become the darling of the industry again," said Annie Austin, a loan officer with Cobalt Mortgage in Bellevue, Wash.
Bob Walters, chief economist of national lender Quicken Loans, said he thinks the increased loan limits will benefit many consumers, "especially those looking to borrow larger amounts," he said, but who "are in a credit situation where Fannie Mae and Freddie Mac loans are not available or optimal."
The switch to the FHA could entail some pain, however. Tim Kepler, a loan officer with Land Home Financial in Danville, Calif., noted that the agency raised its upfront mortgage insurance premiums from 0.5% of the loan amount to 1.15% earlier this year. This will increase applicants' closing costs over a Fannie or Freddie loan, he said.
The premium can be financed, but can add substantially to the costs of high-balance mortgages. Bruce Calabrese, president of Equitable Mortgage in Columbus, Ohio, said the hefty new premiums make "FHA too restrictive and unattractive" for most refinancers in his area, even with slightly higher loan ceilings.
Bottom line for house shoppers: Take a hard, close look at FHA with a local loan officer, in light of the rule changes. Pencil out the costs, down-payment requirements and more generous standards on credit. FHA may be your best option. But then again, the higher fees just might change your mind.
kenharney@earthlink.net
Distributed by Washington Post Writers Group.
Five ways to get everybody at your company to sell
Five ways to get everybody at your company to sell
By Ron Stein - 11/28/2011
Anyone at your company — from the person who answers the phone to the engineering team and even manufacturing workers — can end up talking with a prospect or customer.
They all don't need to be trained to deliver an "in your face" sales pitch, but they all need to be advocates for your organization. And you, as a company leader, have a responsibility to make sure that there is a culture of awareness and sensitivity to the customer's point of view. Each employee needs to know why your business exists and understand that the health of the company ultimately depends on happy customers. You should constantly encourage a customer-service and sales attitude across the entire company.
Here are five ways to make this happen.
Check whether great customer service is a cornerstone of your company's brand. Small things will make a big difference. Here's a simple test: call your company to see how people answer the phone and ask yourself if you'd do business with that company.
Make sure everyone can cite your value proposition and what it means.
Let everyone know about new tools that are available and their purpose. When a new data sheet, PowerPoint presentation, or program is produced, don't assume everyone is aware of it and what it's for. Send out an email bulletin with a quick blurb — then add it to a list of available collateral material with revision numbers.
Hold regular company-wide updates. Even if you have only a handful of employees this is important. Let them know what's going on and encourage your team to ask questions. Be a little selective with the financial information you give them. This is a good time to set expectations in a very positive way. Doing this once a month or so is a great way to build trust and a positive team spirit.
Hold weekly sales review meetings lasting no more than an hour. Start off by going over the deals closed the previous week and highlight why you won. If you lost a deal that week, highlight why you lost it. Then go through the prospect list, beginning with the highest-close probability (based on meetings, product fit, project funding, buying signals, etc.) and discuss the next steps. This is a good time to ask for ideas that help move the ball forward from all participants, not just sales and marketing. Make sure every account and action item has a name of a person and a commitment date. End when the hour is up, even if you haven't gotten through all the prospects on the list. This is your priority list for the upcoming week.
It's all about a winning sales attitude. Great corporate marketing strategies build upon each individual employee as part of a value proposition to infuse a winning sales attitude.
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The Number One Question to Ask a Short Sale Buyer's Agent
When you see short sales sitting on the market month after month, you might wonder why. You might think it's the bank or the listing agent who is holding this up. But the truth is it's generally the buyer. The buyer cancels, and then the listing agent must sell to another buyer. This short sale scenario is what I call a shampoo, rinse, repeat.
Just for the record, the only people who make money are the shampoo companies when they tell you to lather, rinse and repeat. You buy twice the amount of shampoo this way. You have to only wash your hair once and rinse. But that is not true in a short sale. Yet, most of the heartache -- the shampoo, rinse and repeat scenario -- could be avoided if you were to ask a buyer's agent the number one
A reader asks: "I am a listing agent who wants to do what is best for my seller. My seller has a very nice short sale home, and so far we have received 5 offers. I know that some buyers are pretty fickle when it comes to a short sale. Do you have any advice or a list of questions for the buyer's agent? What is the number one question to ask a short sale buyer's agent?"
Answer: Most short sale agents are used to being asked questions, but few agents think to question the buyer's agent. Qualifying the buyer's agent in a short sale transaction is imperative because it's the missing part of the short sale equation.
It takes two agents, generally, to sell a short sale. A listing agent and a buyer's agent. The listing agent represents the seller. The buyer's agent represents the buyer. Some buyer's agents get carried away when a buyer says she wants to buy a short sale. They might put a purchase offer in front of the buyer and say, "Press hard, third copy is yours," without ever setting the buyer's expectations for the short sale.
It is difficult to manage a buyer's expectations but imperative that a buyer understand what is involved with buying a short sale. It's a lot different than buying a regular home for sale. Buying a short sale requires patience.
The Number One Question to Ask a Short Sale Buyer's Agent
It's not unusual for a short sale buyer to feel a bit insecure after writing an offer for a short sale. That's because the buyer doesn't know what happens next. The buyer wonders if she should start her loan or a do a home inspection, and the answer is neither of those things. The buyer needs to wait.
The number one question to ask a buyer's agent is how long will the buyer wait for short sale approval?
It might take anywhere from 4 weeks to 4 months to get short sale approval. Some short sales take longer than that to get approved. There is little reason to start the short sale process if the buyer is not committed to the transaction or unmotivated to wait. Buyers who will not wait past 30 days for approval should either buy a Wachovia short sale or buy a home that is not a short sale. Very few can get approved within 30 days.
Other Questions to Ask a Short Sale Buyer's Agent
As a listing agent, I often analyze and scrutinize offers I receive from buyer's agents. That's because I want my seller to go to closing. I know the signs that cause short sales to fail, and they can often be blamed on the buyer's side of the short sale. Here are sample questions I ask a buyer's agent before advising my seller to lock into a contract with the buyer.
•How many short sales has the buyer's agent closed? If the agent has closed more short sales than can be counted on two hands, that agent has experience managing a buyer's expectations. Buyers who freak out are in pain and want the pain to stop. To stop the pain, they want to cancel. An experienced agent will gently guide them to closing.
•Will you agree to not write any more offers for the buyer? My sellers insist that buyer's agents promise to not only refuse to write other offers but they expect buyer's agents to withdraw any outstanding offers the buyers have already submitted, which might be accepted. We don't let buyers write multiple offers to see which is approved first. They must wait for the home they want.
•Have you prepped the buyer to anticipate a counter offer from the short sale bank? It is standard procedure for a bank to approve the fees in a short sale. Not every fee the buyer expects a seller to pay is always approved. Sometimes, a buyer might need to agree to pay a fee that the bank will not approve or, more importantly, the bank might change the sales price.
•Will the buyer release the earnest money deposit? Sometimes, buyers do not want to release an earnest money deposit. They tend to take their clues regarding deposit disposition from their agent, and their agent might suggest that they hold on to it. We don't call these types of buyers a buyer. Because buyers release their earnest money deposit.
•Do you have a preapproval letter with a current date? I have seen agents submit preapproval letters and checks dated weeks if not months earlier than the purchase contract. That's a sure sign of trouble. Not only could the buyer be writing multiple offers, but the short sale bank sees an expired preapproval letter as a red flag that the buyer is not really qualified.
Wednesday, November 23, 2011
South Florida Resale Inventory Drops 58%
South Florida’s residential resale inventory has decreased in quantity by 58% since the Thanksgiving holiday week – the symbolic start of the busy winter tourism season - of 2008, according to a new report from CondoVultures.com.
Nearly 108,000 residential properties were on the resale market in the tricounty South Florida region on Nov. 24, 2008 as financial uncertainty reached an all-time high following the abrupt failure of the investment banking behemoth Lehman Brothers that subsequently triggered a near meltdown of the U.S. economy.
Some three years later, the number of condos, townhouses, and single-family houses on the resale market in Miami-Dade, Broward, and Palm Beach counties has shrunk to fewer than 45,000 residences as of Nov. 21, 2011, according to analysis by the licensed Florida brokerage CVR Realty™.
Even though the U.S. economy continues to wobble along with modest GDP growth, a recent downgrade by the credit ratings agency Standard & Poor's, and a high unemployment rate by modern standards, the number of residential properties under contract in South Florida has spiked to nearly 22,000 - a large chunk of which are all-cash deals - as of Nov. 21, 2011, according to the analysis based on Florida Realtors association data.
Back in 2008, the pending sales in Miami-Dade, Broward, and Palm Beach counties totaled slightly more than 9,300.
As of Nov. 21, 2011, Miami-Dade County – where Aventura, Coral Gables, and South Beach are located – has nearly 11,200 pending contracts alone.
Broward County – where Fort Lauderdale, Hollywood Beach, and Pompano Beach are located – has nearly 7,650 pending sales.
Palm Beach County – where Boca Raton, Delray Beach, and West Palm Beach are located – has more than 3,000 pending sales.
Several factors are impacting the changing South Florida residential real estate climate, ranging from the foreclosure freeze that has prompted some lenders to withdraw bank-owned properties from the resale market to a flurry of international buyers with strong foreign currencies who are attracted to the region's discounted property prices.
As for product type, the condo and townhouse resale market is showing the greatest improvement in South Florida based on available inventory.
South Florida’s condo and townhouse resale inventory is down nearly 60 percent to less than 24,500 units on the market as of Nov. 21, 2011. In 2008, the condo and townhouses inventory on the market in the tricounty region totaled nearly 61,000 units.
Broward County has experienced the deepest drop in condo and townhouse resales available on the market.
As of Nov. 21, 2011, less than 7,200 condos and townhouses are on the resale market in Broward County. Back in 2008, there were nearly 21,100 condos and townhouses for resale in Broward County.
In Miami-Dade County, there are less than 9,200 condos and townhouses on the market as of Nov. 21, 2011 compared to 24,450 resales available in 2008.
In Palm Beach County, less than 8,150 condos and townhouses are on the market as of Nov. 21, 2011 compared to nearly 15,400 resales available in 2008.
The reduction of South Florida condo resale inventory combined with a steady absorption of new unit sales is triggering talk of another new construction boom.
Developers are proposing at least 15 new towers with nearly 4,000 units in South Florida, according to the CondoVultures.com Preconstruction Condo Projects list.
As for the single-family house resale market, nearly 20,400 properties are available for purchase as of Nov. 21, 2011 compared to nearly 46,700 properties available in 2008.
Miami-Dade County has experienced the most significant drop in single-family houses on the resale market with less than 5,850 houses available on Nov. 21, 2011 compared to more than 16,550 houses available in 2008.
In Broward County, the number of single-family houses on the resale market has dropped to less than 6,300 houses as of Nov. 21, 2011 from 15,850 houses on the market in 2008.
The available single-family houses inventory in Palm Beach County has decreased from less 8,250 houses on the market as of Nov. 21, 2011 compared to more than 14,200 houses on the market in 2008.
It is important to note there are various stages to a residential real estate transaction in South Florida.
A transaction begins when a property is made available for sale and ends when a title is conveyed from one party to another party as a result of the recording of a deed with the local government.
As part of the process, a property typically goes under contract and into a due diligence phase by which a deal can be canceled.
The CondoVultures.com new condo sales report is based on completed transactions where a deed is recorded and taxes paid as a result of the sale.
Condo Vultures® LLC is a real estate consultancy and marketing company based at 1005 Kane Concourse, Suite 205, Bal Harbour, Florida, 33154. You can reach Condo Vultures® LLC at 800-750-0517.
Tuesday, November 22, 2011
Two real estate reports suggest Fla. rebound
Two real estate reports suggest Fla. rebound
CHICAGO – Nov. 17, 2011 – Two national studies – one from Realtor.com and one from Trulia – suggest that some Florida markets are poised for a real estate rebound.
“This is a positive trend for Florida,” says John Tuccillo, Florida Realtors chief economist. “While Trulia and Realtor.com aren’t completely accurate in home prices and sales – mainly because they base their numbers on only homes listed on their website – it’s useful to look at visitor behavior and note the trends. If Trulia says more visitors are doing a home search in the Miami market, for example, it probably follows that Miami is experiencing an upswing in demand.”
Realtor.com’s Top Ten Turnaround Report
In Realtor.com’s “Top Ten Turnaround Report,” six Florida cities were considered good bets for an upswing in sales. Realtor.com, which is owned by The National Association of Realtors®, says it created a formula to rank a city’s turnaround potential based on recent price appreciation, changes in inventory, median age of inventory, number of Realtor.com searches by visitors and area unemployment.
Realtor.com attributes the Florida cities’ success to year-over-year home price increases, reductions in inventory, lower unemployment rates and, in some cases, an upswing in international buyers.
Realtor.com’s turnaround list includes:
1. Miami: Ranked No. 1 in the report, Miami hit the top based on “a healthy inventory that is only half the size from a year ago,” a lower foreclosure rate than the national average, and an increase in condo sales.
2. Orlando: While No. 2, Realtor.com says Orlando had more home searches than any other city when compared to the total number of listings. It also had a significant drop in the number of foreclosures.
3. Fort Myers-Cape Coral: Median prices in Fort Myers-Cape Coral have increased year-over-year, foreclosures are down, inventory is lower and foreign buyers are attracted to the area’s real estate prices.
4. Phoenix-Mesa, Ariz.
5. Fort Lauderdale: Inventory has decreased and prices have increased, says Realtor.com.
6. Sarasota-Bradenton: About one in 10 foreign buyers look in Sarasota-Bradenton for a home, Realtor.com says. Listing prices have increased and inventory has decreased.
7. Lakeland-Winter Haven: According to Realtor.com, the number of distressed sales has decreased significantly and prices have gone up.
8. Boise City, Idaho
9. Fort Wayne, Ind.
10. Ann Arbor, Mich.
Trulia’s Metro Movers Report
Trulia has debuted a new report that analyzed its home searches.
In one study, Trulia looked at the number of people who searched for housing in a city – including renters – and compared it to the number of city residents looking elsewhere for a home. An area with a high number of inbound searches and a low number of outbound searches, Trulia reasons, suggests an increased demand for housing.
According to the study, the North Port-Bradenton-Sarasota area had six times more searches by inbound people than outbound people, landing it in the list’s No. 1 position, but four other Florida cities also made the top 10 list:
1. North Port-Bradenton-Sarasota
2. Riverside-San Bernardino-Ontario, CA
3. Charleston-North Charleston-Summerville, SC
4. Fort Lauderdale-Pompano Beach-Deerfield Beach
5. Cape Coral-Fort Myers
6. West Palm Beach-Boca Raton-Boynton Beach
7. Fort Worth-Arlington, TX
8. Oxnard-Thousand Oaks-Ventura, CA
9. Las Vegas-Paradise, NV
10. Orlando-Kissimmee-Sanford
Trulia also looked at the Chicago and New York City markets to see where residents wanted to move. Three Florida cities ranked in the top 10 for Chicago residents: Tampa-St. Petersburg-Clearwater (No. 4), Cape Coral-Fort Myers (No. 6) and Orlando-Kissimmee-Sanford (No. 10).
In New York City, five Florida cities made the list: Miami-Miami-Beach-Kendall (No. 2), Orlando-Kissimmee-Sanford (No. 3), West Palm Beach-Boca Raton-Boynton Beach (No. 5), Fort Lauderdale-Pompano Beach-Deerfield Beach (No. 6) and Tampa-St. Petersburg-Clearwater (No. 7).
© 2011 Florida Realtors®
Selling On-Camera
Daily Real Estate News | Tuesday, November 22, 2011
More real estate professionals are using video to market their listings, taking viewers on a walk-through and making them feel as though they are on an actual tour. These videos can be included in e-newsletters and posted on blogs, Web sites, and Facebook pages.
Nearly three-quarters of home owners surveyed by Postling said they would prefer to work with REALTORS® who use video. Coldwell Banker chief marketing officer Mike Fischer says, "People don't necessarily believe the photos; photos don't tell the whole story...What video can offer to a listing is just additional information and texture."
Sotheby's International Realty recently launched a YouTube channel, and its agents depend on professional videographers to shoot and edit their videos. However, many agents handle those tasks themselves, focusing on recent improvements and eliminating footage of small bathrooms and other less impressive features. They generally stick to a couple of rooms and keep the video short, hoping that viewers will make an appointment to see the rest of the home in person.
Although agents see the value of adding video to their marketing plans, they say videos will not help sell overpriced homes; and some have not embraced video because of the time and money involved in their production.
Source: "Cinematic Selling Points," Express (D.C.) (11/18/11)
(c) Copyright 2011 Information, Inc
"South Florida foreclosures", "Florida foreclosure list", "Florida housing market values", "Miami Distressed Commercial investments", "South Florida real estate deals", "Miami courthouse auctions", "Miami courthouse foreclosures", "Florida spec homes"
More real estate professionals are using video to market their listings, taking viewers on a walk-through and making them feel as though they are on an actual tour. These videos can be included in e-newsletters and posted on blogs, Web sites, and Facebook pages.
Nearly three-quarters of home owners surveyed by Postling said they would prefer to work with REALTORS® who use video. Coldwell Banker chief marketing officer Mike Fischer says, "People don't necessarily believe the photos; photos don't tell the whole story...What video can offer to a listing is just additional information and texture."
Sotheby's International Realty recently launched a YouTube channel, and its agents depend on professional videographers to shoot and edit their videos. However, many agents handle those tasks themselves, focusing on recent improvements and eliminating footage of small bathrooms and other less impressive features. They generally stick to a couple of rooms and keep the video short, hoping that viewers will make an appointment to see the rest of the home in person.
Although agents see the value of adding video to their marketing plans, they say videos will not help sell overpriced homes; and some have not embraced video because of the time and money involved in their production.
Source: "Cinematic Selling Points," Express (D.C.) (11/18/11)
(c) Copyright 2011 Information, Inc
"South Florida foreclosures", "Florida foreclosure list", "Florida housing market values", "Miami Distressed Commercial investments", "South Florida real estate deals", "Miami courthouse auctions", "Miami courthouse foreclosures", "Florida spec homes"
Monday, November 21, 2011
The power of video blogging
The power of video blogging
NEW YORK – Nov. 21, 2011 – Vlogging, or video blogging, could become more popular than blogging. With YouTube reporting 2 billion views daily, businesses are recognizing the value of posting short videos on a variety of topics. However, experts say useful content – not ads – is what attracts viewers.
Vancouver real estate agent Ian Watt goes beyond posting videos of his listings and provides information deemed valuable by homeowners – and he prefers vlogging and social media marketing over flyers and cold calls.
To ensure that videos rank toward the top of search pages, experts say agents should include their city in their video descriptions.
Source: “The Power of Video Blogging” Business Insider (11/14/11)
Blogging is out. Video blogging is in.
Also called vlogging, video blogging allows anyone with a YouTube account and a video camera to post their thoughts on anything from the latest fashions to foreign policy. In a time when the mass public turns to TV news instead of newspapers and movies instead of books, video blogging looks to take over where blogging left off. But how can your business harness the power of this technology?
For years, marketing experts touted the importance of a regularly updated blog on business websites. This provided fresh content that would not only keep visitors coming back, but kept a site high in search rankings. As YouTube grew in popularity, camera-friendly individuals turned to video blogging as a way to express their opinions and thoughts. As it grew, corporations and marketing gurus began to realize the power behind posting short, informational videos on one of the most popular social networking sites.
It’s impossible to ignore the importance of YouTube, a site that boasts two billion views per day, according to the site. This is “nearly double the prime-time audience of all three major U.S. television networks combied,” according to YouTube. The key for small businesses is directing a chunk of those two billion daily views to their posted content, which means merely posting ads for services will not cut it. Businesses have to find a way to post video blogs that will provide content users need.
Social media coach Jeff Bullas points to a few video blogging success stories as examples, including Vancouver real estate agent Ian Watt, who eschewed traditional real estate marketing practices such as flyers and cold calls in favor of social media marketing. Watt is considered a leader in the Vancouver real estate market, ranking in the top one percent of members of the Greater Vancouver Real Estate Board. Watt doesn’t just show his properties on YouTube, as many video bloggers do, he provides valuable information for home owners and buyers that prompt YouTubers to watch.
If you’re a computer repair shop, provide valuable tech tips. If you own a bridal shop, do a series of informational videos for brides-to-be. The key is to use specific titles, such as, “How to change a toner cartridge” or “How to choose a bridal veil.” Introduce yourself at the beginning of the video and include a shot of the outside of your shop, as well as the address, at the end. Be prepared for the possibility that many of your visits may come from out-of-towners, but you’ll still be getting your name out there. To help bring locals to your site, be sure to put your city in your video description somewhere. This will help it show up in searches if someone, for example, types in “Vancouver real estate.”
There’s no denying video blogging is here to stay. With so many videos to choose from, it’s important for businesses to provide valuable content that will drive YouTube members to their YouTube channel
© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
Rule Changes on Short Sales as of January 1 2012
Freddie Issues Rule Changes on Short Sales
Daily Real Estate News | Monday, November 21, 2011
As of Jan. 1, Freddie Mac will require parties involved in a short sale to sign affidavits that will make them liable for any negligent or intentional misrepresentations in the transaction, HousingWire reports. Mortgage servicers are being urged to implement the change immediately before the Jan. 1 mandate, however.
The move is part of Freddie Mac’s effort to crack down on the rising incidences of short-sale fraud.
"With this change, you will have more information to identify potential mortgage fraud and a clearer understanding of the intent of all parties involved in the real estate transaction," Freddie said in a statement announcing the rule changes to mortgage servicers last Friday.
In its guidance, Freddie also eliminated a requirement that borrowers who are more than 120 days delinquent are required to list their home for sale before becoming eligible for a deed-in-lieu. The rule changes also included efforts to help mortgage servicers speed up the loss-mitigation process
Best Housing Markets
Best Housing Markets for Big Bargains
Daily Real Estate News | Monday, November 21, 2011
Financial analysis firm 24/7 Wall St. has identified the housing markets expected to offer some of the biggest discounts for home buyers. Many of these markets have been plagued with large gluts of foreclosures that have dragged down prices. In fact, six of the 10 markets on the list have had median home prices fall to less than half what they were five years ago, according to 24/7 Wall St.
The following housing markets offer home buyers some of the biggest discounts:
North Port-Bradenton-Sarasota, Fla.
Median home price: $170,000
Home value decline from peak: -51.4%
Predicted change in home value through 2Q 2012: -6.5%
Riverside-San Bernardino-Ontario, Calif.
Median home price: $180,000
Home value decline from peak: -55.4% (14th biggest decline)
Predicted change in home value through 2Q 2012: -14.8%
Charleston-North Charleston, S.C.
Median home price: $200,000
Home value decline from peak: -23.3%
Predicted change in home value through 2Q 2012: -1.6%
Fort Lauderdale-Pompano Beach, Fla.
Median home price: $199,000
Home value decline from peak: -48.4%
Predicted change in home value through 2Q 2012: -9.2%
Cape Coral-Fort Myers, Fla.
Median home price: $106,000
Home value decline from peak: -59.3%
Predicted change in home value through 2Q 2012: -12.2%
Sales of existing homes in October beat expectations, registering a gain of 1.4 percent from the previous month, but that number masks a market that is heavily weighted to the low end. Realtors say they expect sales to bounce around the same levels for the rest of the year, with a very slight annual gain from 2010. This sales stabilization of sorts would suggest that home prices might soon do the same, especially as inventories come down, but that has not been the case.
Home prices continue to drop, especially for single family homes, which saw a hefty 5.8% price drop in October from a year ago (always measure prices year-over-year due to their heavy seasonality). The reason is that only one price segment of the market is really selling, and that segment includes the most distressed, discounted homes.
"We are getting a bifurcated recovery, the lower end seeing strong activity, while the upper end still sagging and showing very little interest," said the Realtors' chief economist Lawrence Yun.
Home sales in the $0-100,000 range were up a hefty 24 percent from a year ago, part of that due to last year's depressed numbers following the expiration of the home buyer tax credit, but much of it due to the fact that one third of the market is now foreclosures and short sales, and that's generally the range for those properties. Sales were also up 13 percent in the $100-250,000 range, but after that the party quiets down considerably. Sales were up just over one percent in the $250-500,000 range, and down 9 percent above that.
Obviously it's important to clear out the distressed properties in order to return to a healthy housing market, and that appears to be happening, slowly but surely, but the move-up market is still in trouble. The share of higher-priced homes is smaller, but in September it was still showing healthy gains. Sales were up 11.5 percent in September in the $750-1m range. What changed?
Loan limits for Fannie Mae and Freddie Mac dropped October first, and that may have affected some of those higher end sales, but uncertainty in the economy and the jobs market is also weighing more heavily on higher-end buyers whose confidence is influenced to a greater degree by fluctuations in the stock market and overseas debt crises. October also saw a huge jump in the percentage of Realtors experiencing at least one cancelled contract. 33 percent! That's up from 18 percent in September and a norm of around 6-8 percent.
The Realtors blame the spike in cancellations on declined mortgage applications, lower-than-anticipated appraisals, employment losses and a disruption in the national flood insurance program. They didn't mention the elephant at the closing table, which is historically weak consumer confidence and a continuing imbalance in supply and demand.
South Florida foreclosures", "Florida foreclosure list", "Florida housing market values", "Miami Distressed Commercial investments", "South Florida real estate deals", "Miami courthouse auctions", "Miami courthouse foreclosures", "Florida spec homes"
Saturday, November 19, 2011
Fewer behind on mortgages, building permits show uptick
The share of borrowers falling behind on home loans dropped in the third quarter, and building permits for single-family homes climbed in October to their highest level in 10 months, new data show.
The Mortgage Bankers Association said Thursday that the share of mortgage borrowers who have missed at least one payment — but are not yet in foreclosure — fell to 8% in the third quarter from 8.4% in the second quarter.
The share of borrowers more than 30 days behind but less than 60 days late fell the most, to a four-year low of 3.2% from 3.5% in the second quarter.
That drop suggests that fewer borrowers are falling behind for the first time, which will reduce foreclosures years from now.
Still, 4.2 million borrowers are more than 90 days behind on their mortgages or are already in foreclosure. Most of those borrowers will lose their homes to foreclosure or other distressed sales in the coming years.
That will continue to put pressure on home prices, said Paul Dales, economist at Capital Economics. He expects U.S. home prices, down about 4% from last year, to stay flat next year.
"We're moving in the right direction, but we're still well above normal" for troubled loans, said Michael Fratantoni, MBA's vice president of research and economics.
He says the number of new delinquencies should continue to decline if job growth continues.
Home building is also well below normal, even with the stronger October showing.
Housing starts slipped slightly in October from September to an annual rate of 628,000, the Commerce Department said Thursday. That's about half the pace of long-term trends leading up to the housing bubble.
Single-family starts were up 3.9% from September.
Permits, which are better indicator of future activity, rose 5.1% for single-family homes and 24% for multi-family units, the Commerce Department said.
The October results point to a single-family market that's "finally getting off the mat" and a multi-family segment that's making "small strides," said Patrick Newport, economist at IHS Global Insight. Still, single-family home starts and permits are likely to set record lows this year, Newport says.
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Wednesday, November 16, 2011
South Florida attracts domestic home buyers, too
New Yorkers, Washingtonians and Atlantans are logging more and more internet searches for South Florida real estate, a sign that the region’s troubled housing market could receive even more outside investment in the future.
In the wake of a severe housing bust, Florida has become one of the most popular locales for Americans seeking low-priced real estate, according to a report released Wednesday by real estate website Trulia.com.
“Despite the big price declines, and probably because of the big price declines, we’re seeing so much inbound search activity from people within Florida and especially from outside Florida,” said Jed Kolko, chief economist for Trulia.
The report compared the number of inbound searches for South Florida real estate to the number of outbound searches to gauge how many people are thinking about moving to the region. In Broward County, the ratio was 2.15, meaning twice as many people are looking to potentially move into Broward County than are looking to move out.
In Miami-Dade, the ratio was 0.8, a net negative but still one of the highest ratios among the nation’s larger metro areas. The report did not include international searchers, which make up a large chunk of South Florida homebuyers. More than two-thirds of all searches for South Florida real estate came from more than 500 miles away.
New Yorkers have shown a growing interest in South Florida real estate, according to the report. New York is the top non-Florida locale searching for homes in South Florida and Miami-Dade ranks as the second most popular search destination for New Yorkers, after Los Angeles.
At Canyon Ranch, a luxury condo building in Miami Beach, about 100 of the 130 unit sales this year have gone to buyers from New York and other states in the Northeast, said Michael Sadov, director of sales.
“It’s a combination of people who are planning to retire here, and people who see that the prices are anywhere from 25 to 30 percent less,” he said.
Because of the high levels of housing distress, South Florida’s real estate market is in need of outside investment to prop itself up. With nearly half of South Florida mortgages underwater, local homeowners do not have the purchasing power to absorb the huge crop of distressed inventory set to hit the market in the near future.
At the same time, the region’s discounted prices are attracting unprecedented investment from outside the region, and particularly outside the country, with international buyers spending more than $3.8 billion on South Florida real estate this year.
By TOLUSE OLORUNNIPA
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© 2011 Miami Herald Media Company. All Rights Reserved.
http://www.miamiherald.com
Read more: http://www.miamiherald.com/2011/11/16/v-print/2503809/south-florida-attracts-domestic.html#ixzz1duOoRSth
6 low-cost marketing ideas to get noticed
ANAHEIM, Calif. – Nov. 16, 2011 – You don’t need to break the bank to expand your marketing efforts and build connections, marketing expert Julie Ryan, with Strategic Thinking in Australia, told a crowd at the Marketing Without Money session during the National Association of Realtors® (NAR) 2011 Realtors® Conference & Expo in Anaheim, Calif. “If you have a tight budget, you tend to be more focused on making sure every single dollar works harder,” Ryan said.
Regardless of how large or small your budget is, make your marketing message stick by focusing on three core areas: Impact (offering a message of value to clients), frequency (making contact a minimum of at least three times in three weeks to get people to remember you), and building relationships to form lasting connections.
Ryan suggested some of the following low-cost marketing ideas at the session:
1. Offer congratulations: Scan the local newspaper in search of good-news stories, such as people in the community earning an award or a job promotion, and then send a note congratulating them on the feat. That pat-on-the-back recognition makes you memorable and helps you build connections with people in your market, Ryan said.
2. Provide a special touch: To give your message more impact, print out an invitation to an open house for your listing and roll it up and tie it with a ribbon. Then, place it in door hangers on neighbors’ doors, mail the rolled-up invitation in a cylinder or even hand-deliver it.
3. Show time: Create videos showing off your listings and post them on sites like YouTube to expand your reach. Also, consider creating videos of your community that explain what it’s like to live and work there, or that answer common real estate questions, Ryan suggested.
4. Try location-based social media: Sites like Foursquare aren’t just for checking-in to local areas, but you can use them to leave tips and relevant, helpful information at every single location your customers are likely to frequent – such as local restaurants or where to find the best views in the city.
5. Be a valuable resource: Once you’ve identified something your customers are interested in, set up a Google Alert to monitor that topic so you’ll get a notification when something matching those keyword terms surfaces on the Internet. You can then pass the message along through an e-mail or quick phone call to let your client know about something they may not know about yet. It’ll help you build stronger connections with consumers, Ryan said.
6. Reach out to the community: Instead of just writing a donation check to schools or charitable groups, try offering up an award that you can present or hosting a special event with community involvement. For example, present a book award at a middle or elementary school to a student for a job well done, or hire the local elementary school band to play at your upcoming auction or as part of a special event at your office.
Florida Markets Dominate Top Ten Turnaround Report
Though the past four years have seen many cities suffering from large numbers of foreclosures and a loss in home values, ten of these real estate markets are now leading the nation towards a general recovery and stability of the housing sector.
Realtor.com’s Top 10 Turnaround Town Report, based on third quarter 2011 data, includes six Florida markets: Miami, Orlando, Fort Myers-Cape Coral, Fort Lauderdale, Sarasota-Bradenton, and Lakeland-Winter Haven.
Each of these markets has experienced positive year-over-year median price appreciation, reductions in year-over-year median age of inventory and inventory counts, while also experiencing lower unemployment rates on a year-over-year basis. Florida’s success can also be tied to foreign buyers; the number of foreign buyers purchasing homes there increased from 10 percent in 2007 to 31 percent in 2011.
Let’s take a closer look:
Miami, FL: The number one town on the report, Miami has gone from being one of the first victims of the subprime crash to having a healthy inventory that is only half the size from a year ago. Today, Miami is only reporting one foreclosure for every 407 homes, compared to the national rate of one per every 213. And, condo sales have increased 79 percent in the first five months of this year, largely due to an influx of foreign investors.
Orlando, FL: Ranked second on the report, Orlando leads the nation in the ratio of Realtor.com searches to listings. Inventory has also obtained a balance with demand. Foreclosures hurt the market in 2007-08, but foreclosures in Orlando were down 58 percent in September, compared to last year.
Fort Myers-Cape Coral, FL: Median prices in Fort Myers-Cape Coral have increased almost 33% year-over-year, according to Realtor.com’s October 2011 Real Estate Trend Data. In addition, foreclosures are down–only one in 313 homes in September–while inventory has been reduced and foreign buyers have been attracted to the area’s real estate prices. The metro ranked third on the turnaround report.
Fort Lauderdale: FL: A decrease in inventory coupled with an uptick in prices earns Fort Lauderdale the number five spot on the report. Inventory decreased almost 38 percent year-over-year, according to Realtor.com’s October data report. Prices have fallen about 46 percent since 2006, but are now going up.
Sarasota-Bradenton, FL: A total of 11 percent of all foreign buyers in Florida are in Sarasota-Bradenton specifically. Number six on the turnaround report, the market has seen a list prices increase of more than 17 percent year-0ver-year and a decrease of inventory of 32 percent according to the Realtor.com October data. The market still has a long way to go, after losing more than 55 percent of home values from 2006 to the second quarter of 2011 due to foreclosures.
Lakeland-Winter Haven, FL: A year ago, Lakeland-Winter Haven topped national foreclosure filing lists, but now the area’s distressed sale market share has decreased 46 percent. The area–ranked 7th on the turnaround list–has seen total listings decreased more than 36 percent year-over-year and median age of inventory decrease more than 17 percent, according to Realtor.com’s October data. Prices are also up 12 percent compared to last October.
Realtor.com’s Top Ten Turnaround Town Report is compiled using a formula based on price appreciation, changes in inventory, median age of inventory, searches by Realtor.com visitors, and unemployment data.
Check back in tomorrow for a closer look at the remaining four markets
Read more: Florida Markets Dominate REALTOR.com Top Ten Turnaround Report | REALTOR.com® Blogs
"South Florida foreclosures", "Florida foreclosure list", "Florida housing market values", "Miami Distressed Commercial investments", "South Florida real estate deals", "Miami courthouse auctions", "Miami courthouse foreclosures", "Florida spec homes"
Home Builders See Signs of Hope
Despite rising foreclosures and weak consumer confidence, the nation's home builders are seeing signs of hope in housing. Home builder confidence rose for the second straight month in November, according to the National Association of Home Builders' monthly sentiment survey, but builders warn it is still far below a positive reading.
“While this second solid monthly gain on the builder confidence scale is encouraging, the overall measure remains quite low due to the many challenges that home building continues to face with regard to the high number of foreclosures, the difficulties of obtaining construction financing and accurate appraisals, and the restrictive lending environment that is discouraging potential buyers,” said Bob Nielsen, NAHB Chairman and a home builder from Reno, Nev.
Confidence rose in three of the four geographic regions, with the Midwest seeing the biggest gains. Out West, where distressed properties are making up more than half of the housing market, confidence dropped significantly. Builders saw the biggest gains in current sales conditions, with future expectations and buyer traffic still up, but slightly less.
Builders credit extremely favorable mortgage rates and home prices for tempting more buyers into the market, but they also lobbied heavily for Congress to reinstate higher loan limits at mortgage giants Fannie Mae and Freddie Mac. Loan limits there fell from $729,750 to $625, 500 on October first. This week lawmakers instead made a deal to raise limits at the FHA, but not at Fannie Mae and Freddie Mac. The builders' association is still supporting the measure.
"To help mend the struggling housing market, stabilize home values, provide constancy while private investors re-enter the market and ensure that millions of creditworthy home borrowers can access the best possible mortgage rates, Congress must support this bill to help American families and get the lackluster economy moving forward," Nielsen wrote in a statement.
Several builder analysts have upgraded various public builders recently, expecting a turnaround in the sector sometime next year. Housing starts rose significantly in September, but that was largely on the back of the multi-family sector, responding to increased rental demand. Expectations for October starts are flat to lower. They will be released Thursday morning by the Commerce Department.
Tuesday, November 15, 2011
Fixed-rate mortgage is king
With long-term interest rates so low, few borrowers are interested in adjustable-rate mortgages these days. More than 95 percent of homeowners who refinanced a mortgage last quarter choosing a fixed-rate mortgage, according to Freddie Mac.
Among those who refinanced a 30-year fixed-rate mortgage, 40 percent chose to take out a 15-year or 20-year mortgage to replace it.
Freddie Mac says 63 percent of homeowners who refinanced an adjustable-rate mortgage chose to replace it with a fixed-rate loan.
A 30-year fixed-rate mortgage averaged 4.29 percent in the third quarter. A 15-year fix averaged 3.47 percent.
The Power of a Mastermind Group
Another option for your climb to the Champion level is a mastermind group. Napoleon Hill put forth the concept of a mastermind group as described in his landmark book Think and Grow Rich. Mr. Hill defines a mastermind group as, "A coordination of knowledge and effort, in a spirit of harmony, between two or more people, for the attainment of a definite purpose."
Most people who have had success in their field have done so through the use of a mastermind, either formally or informally. Informally, they look back years later and can see the people or groups that helped them forge their success. Why do it by accident when you can do it by intention? You can be formulating an intended mastermind with anyone you listed on your potential board of directors, if you have put together that list. Another option is to form the most used mastermind: an intentional mastermind structure. The intentional mastermind structure is when you create a mastermind group of like-minded and like-goaled individuals into a mutually beneficial group with a definite purpose.
I was in such a group, and it added to my success significantly. It was a group of about ten agents, and we all had similar production and goals. Our passion to increase and expand our business was at a similar level as well. I didn't say equal level; I said similar. We all, over a series of years, added hundreds of thousands of dollars to our gross sales and profits because of this mastermind group. I am still in contact with many from this group, and it has been over ten years since our last meeting. In forming this type of group, you have a couple of options. You can create a local area group, regionally based group, or national based group. There are advantages and disadvantages to each.
With the locally focused group, you can brainstorm specific market-based issues more effectively. You will also gain the advantage of being able to meet more frequently and for shorter periods of time if you desire. The challenge with a locally based group is the balance of the competition among agents, since you are all in the same market. There might be less of a tendency to share "secrets". Most agents in a local market mastermind are less open to sharing and opening up their success. Nor do you gain the wisdom of evaluating and helping others who might be currently experiencing another type of market.
A regional group expands the potential for differing markets, strategies, and issues. It also increases the sharing between mastermind group participants because the competition is decreased. If you work for a large enough company, you might be able to secure enough people in the firm to participate regionally. This will help when you are trying to implement new tools or strategies in your business or when you work with existing tools and strategies the company has created to help you increase your business. Ease of travel is still part of the equation, as well as reasonable frequency of meetings.
A nationally focused mastermind group was my preference then and now. There are certainly disadvantages due to travel proximity and frequency of meetings. I really believe, however, those disadvantages are small when compared to the advantages. With a nationally based mastermind group, comprised of agents from all parts of the US and Canada, you create a broader base of knowledge. You will benefit from learning about all types of marketplaces. Someone will be transitioning in or out of a buyer's, neutral, or seller's marketplace. It prepares you for those markets in advance – how to spot them and what to do as your marketplace transitions. This widened perspective will make you a better agent and business owner.
The sharing is unfiltered. Since you are not competing, you will see the "true" marketing strategy, marketing pieces, checklists, systems, scripts, pre-listing packages, and many other tools that will help you build or perfect your tools and systems. If you move the meetings around geographically, you will be able to observe other agents' offices and the internal workings of their systems and staff, and how they operate. This knowledge can be extremely valuable in increasing your ability to leverage through people.
A nationally based group gives you the opportunity to get out of town and unplug from working "in" your business to working "on" your business. Because the distractions are diminished when you are out of town, you can really focus on a deeper level than a local mastermind. It will allow you to see other parts of the country, possibly invest in investment property, or just have some fun. This shouldn't be counted as a vacation because it's not. My wife and I would still take a couple of days on either side to add a little fun and adventure to the trip on the business.
The Power of a Mastermind Group
by Dirk Zeller
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Copyright © 2011 Realty Times. All Rights Reserved.
"South Florida foreclosures", "Florida foreclosure list", "Florida housing market values", "Miami Distressed Commercial investments", "South Florida real estate deals", "Miami courthouse auctions", "Miami courthouse foreclosures", "Florida spec homes"
U.S. Won't be Nation of Renters
U.S. Won't be Nation of Renters
by Carla Hill
According to the National Association of Realtors®, (NAR) the U.S. will not become a nation of renters.
Currently, over 65 percent of Americans are homeowners, a rate that has held since the 1960's. It's no wonder why most Americans seek out a home of their own.
Homeownership has both financial and social benefits. According to the most recent data from the Federal Reserve Board, a homeowner's net worth is 45.9 times that of a renter's.
"We knew that homeowners, on average, accumulate more wealth than renters,” said Ken Johnson, editor, Journal of Housing Research at Florida International University. Johnson spoke at the session and conducted the analysis with Eli Beracha. "These findings indicate that homeownership is a self-imposed savings plan. Not everyone should own a home, but from a financial perspective, people who are planning to stay in a property over the long term can benefit from buying.”
This is no wonder why. Despite recent declines in home prices, historically prices do rise over the long-term. This means an owner is paying towards an asset. They are building equity. A renter, on the other hand, is paying for a living space for that month. It is not money invested.
Homeownership is also at a generational high when it comes to afforadability. Recent studies show all 50 states are at 30-year record levels of affordability, based on mortgage-to-income ratios. Couple that with historically low interest rates and there are deals to be had.
Many buyers are still uncertain about entering the market, though. Unemployment and rampant media reminders of an ailing economy create fear and reserve.
Regardless of the ups or downs of the economy, however, social benefits of homeownership remain. Realty Times has reported on these benefits for years, knowing that buyers don't buy simply because it's the right financial time. They buy to provide stability and security for growing families.
In the NAR study, "Measuring the Benefits of Homeowning: Effects on Children,” there were significant findings that homeownership has a strong positive effect on educational achievement. Children are more likely to graduate, teenage girls are less likely to experience teenage pregnancy, and children of homeowners are more likely to be financially reponsibly adults.
The study says, "Homeowners are required to take on a greater responsibility such as home maintenance and acquiring the financial skills to handle mortgage payments. These life management skills may get transferred to their children."
Additionally, higher levels of homeownership have been shown to reduce crime rates. "Homeowners have a lot more to lose financially than do renters. Property crimes directly result in financial losses to the victim. Furthermore, violent non-property crimes can impact the property values of the whole neighborhood. Therefore, homeowners have more incentive to deter crime by forming and implementing voluntary crime prevention programs." (NAR)
"These findings are no surprise to Realtors®,” said NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I. "We, like the nation's 75 million homeowners and many other who aspire to one day own a home, know homeownership is an investment in the future of our families, communities, and nation. That is why we will continue to fight for public policies that promote responsible, sustainable homeownership; we believe that anyone who is able and willing to assume the responsibilities of owning a home should have the opportunity to pursue that dream.”
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Copyright © 2011 Realty Times. All Rights Reserved.
"South Florida foreclosures", "Florida foreclosure list", "Florida housing market values", "Miami Distressed Commercial investments", "South Florida real estate deals", "Miami courthouse auctions", "Miami courthouse foreclosures", "Florida spec homes"
Monday, November 14, 2011
Tips for Selling a Home in the Winter
Traditionally, the time from Thanksgiving to New Year's Day can be some of the slowest time of the year for home buying due to the holidays and the often less-than-perfect weather. But that doesn’t mean sellers can’t sell during the winter months. In fact, with decreased inventories, sellers may have a better chance to standout and face a buyer pool with more urgency to settle down.
Experts offer some of the following tips for selling a home in the winter:
Stage it: Stagers can arrange furniture so that selling-points in a home don’t get overlooked, paint rooms inviting colors, and have the know-how to give a home a cozy winter feel. Display photos of the home that also show it in warmer summer months. And don’t forget to turn up the thermostat in the home so buyers are comfortable from the moment they step through the door."If you have a vacant house in winter with the heat turned down to 50, chances are someone will make a very low offer," Loren Keim, a real estate broker, told the Associated Press.
Price it right: "If it's priced properly, it will sell any day of the year," Katie Severance, a broker for RE/MAX in Upper Montclair, N.J., told the Associated Press.
Show the way: Keep sidewalks and driveways clear of snow, ice, and leaves--giving potential buyers a clear path to your listing’s front door.
Light it up: There’s less daylight in the winter months so it’s even more important to keep all the lights on as well as open blinds and drapes for natural light. Keep the home well-lit even when you’re not there so the home still looks inviting to passersby who drive by in the evenings after work.
Source: “Selling Your Home? Some Tips for the Off-season,” The Associated Press (Nov. 9, 2011
"South Florida foreclosures", "Florida foreclosure list", "Florida housing market values", "Miami Distressed Commercial investments", "South Florida real estate deals", "Miami courthouse auctions", "Miami courthouse foreclosures", "Florida spec homes"
Friday, November 11, 2011
30-year mortgage below 4%
WASHINGTON – Nov. 11, 2011 – The average rate on the 30-year fixed mortgage fell below 4 percent for just the second time in history.
Freddie Mac said Thursday the rate on the 30-year fixed loan fell to 3.99 percent, down from 4 percent last week. Five weeks ago, it dropped to a record low of 3.94 percent, according to the National Bureau of Economic Research.
The average rate on the 15-year fixed mortgage fell last week to 3.30 percent from 3.31 percent. Five weeks ago, it too hit a record low of 3.26 percent.
Mortgage rates track the yield on the 10-year Treasury note, which fell this week as investors shifted money into safer Treasurys amid fears Europe’s debt crisis could worsen.
Low mortgage rates have done little to boost home sales. Rates have been below 5 percent for all but two weeks this year. Yet home sales are on pace to be the lowest in 14 years.
Refinancing activity jumped more than 12 percent last week from the previous week, to the highest level in a month, according to the Mortgage Bankers Association. But refinancing is down 13.5 percent from a year ago and the four-week moving average for purchase and refinancing mortgage applications is down slightly, suggesting the low rates are failing to entice many Americans.
High unemployment and declining wages have made it harder for many people to qualify for loans. Many Americans don’t want to sink money into a home that could lose value over the next three to four years. And most homeowners who can afford to refinance already have.
The low rates have caused a modest boom in refinancing, but that benefit might be wearing off. Most people who can afford to refinance have already locked in rates below 5 percent.
Just five years ago they were closer to 6.5 percent. Ten years ago, they were above 8 percent.
The average rates don’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.
The average fee for the 30-year fixed mortgage was unchanged at 0.7. The average fee on the 15-year fixed loan rose from 0.7 to 0.8.
The average rate on the five-year adjustable loan rose to 2.98 percent from 2.96 percent, which had been a record low. The average rate on the one-year adjustable loan increased to 2.95 percent from 2.88 percent. It fell last month to 2.81 percent, the lowest on records dating to 1984.
The average fees on the five-year and one-year adjustable loans were both unchanged at 0.6.
To calculate average mortgage rates, Freddie Mac surveys lenders across the country Monday through Wednesday of each week.
Copyright © 2011 The Associated Press, Derek Kravitz, AP economics writer. All rights reserved. This material may not be published, broadcast, rewritten or
redistributed
"South Florida foreclosures", "Florida foreclosure list", "Florida housing market values", "Miami Distressed Commercial investments", "South Florida real estate deals", "Miami courthouse auctions", "Miami courthouse foreclosures", "Florida spec homes"
Freddie Mac said Thursday the rate on the 30-year fixed loan fell to 3.99 percent, down from 4 percent last week. Five weeks ago, it dropped to a record low of 3.94 percent, according to the National Bureau of Economic Research.
The average rate on the 15-year fixed mortgage fell last week to 3.30 percent from 3.31 percent. Five weeks ago, it too hit a record low of 3.26 percent.
Mortgage rates track the yield on the 10-year Treasury note, which fell this week as investors shifted money into safer Treasurys amid fears Europe’s debt crisis could worsen.
Low mortgage rates have done little to boost home sales. Rates have been below 5 percent for all but two weeks this year. Yet home sales are on pace to be the lowest in 14 years.
Refinancing activity jumped more than 12 percent last week from the previous week, to the highest level in a month, according to the Mortgage Bankers Association. But refinancing is down 13.5 percent from a year ago and the four-week moving average for purchase and refinancing mortgage applications is down slightly, suggesting the low rates are failing to entice many Americans.
High unemployment and declining wages have made it harder for many people to qualify for loans. Many Americans don’t want to sink money into a home that could lose value over the next three to four years. And most homeowners who can afford to refinance already have.
The low rates have caused a modest boom in refinancing, but that benefit might be wearing off. Most people who can afford to refinance have already locked in rates below 5 percent.
Just five years ago they were closer to 6.5 percent. Ten years ago, they were above 8 percent.
The average rates don’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.
The average fee for the 30-year fixed mortgage was unchanged at 0.7. The average fee on the 15-year fixed loan rose from 0.7 to 0.8.
The average rate on the five-year adjustable loan rose to 2.98 percent from 2.96 percent, which had been a record low. The average rate on the one-year adjustable loan increased to 2.95 percent from 2.88 percent. It fell last month to 2.81 percent, the lowest on records dating to 1984.
The average fees on the five-year and one-year adjustable loans were both unchanged at 0.6.
To calculate average mortgage rates, Freddie Mac surveys lenders across the country Monday through Wednesday of each week.
Copyright © 2011 The Associated Press, Derek Kravitz, AP economics writer. All rights reserved. This material may not be published, broadcast, rewritten or
redistributed
"South Florida foreclosures", "Florida foreclosure list", "Florida housing market values", "Miami Distressed Commercial investments", "South Florida real estate deals", "Miami courthouse auctions", "Miami courthouse foreclosures", "Florida spec homes"
Assistance for unemployed homeowners
Fla. assistance for unemployed homeowners
TALLAHASSEE, Fla. – Nov. 10, 2011 – Florida continues to operate a federally funded program to help at-risk homeowners facing foreclosure following unemployment. However, a handful of Florida companies may claim they represent the Florida Housing Finance Corporation’s Hardest Hit Fund (HHF) when they do not.
The FHFC website specifically lists seven companies NOT associated with the program: Mader Law Group, Attorneys Legal Network, The Law Center, NOVA Debt, National Loan Restructuring and LMPrep LLC Hardship Center.
In February 2010, the U.S. Treasury created the “Housing Finance Agency (HFA) Innovation Fund for the Hardest-Hit Housing Markets”. It allocated funds to 18 states and the District of Columbia to assist in foreclosure prevention efforts. A total of $7.6 billion has been allotted for this fund; Florida’s total amount is more than $1 billion.
The Florida Housing Finance Corporation administers the state’s HHF fund under the following programs:
• Unemployment Mortgage Assistance Program (UMAP). UMAP provides up to six months of mortgage payments (with a cap of $12,000) paid directly to a mortgage lender to assist unemployed/underemployed borrowers with their first mortgage until they can resume full payments on their own.
• Mortgage Loan Reinstatement Payment (MLRP) Program. MLRP can be used to make a delinquent mortgage current (up to $6,000) for a homeowner who has returned to work or recovered from underemployment/underemployment.
For additional information on the HHF program and to apply, visit www.FLHardestHitHelp.org."South Florida foreclosures", "Florida foreclosure list", "Florida housing market values", "Miami Distressed Commercial investments", "South Florida real estate deals", "Miami courthouse auctions", "Miami courthouse foreclosures", "Florida spec homes
Wednesday, November 9, 2011
Miami housing market rebounds to outperform the nation
Despite suffering through one of the worst housing market crises, Miami's residential market is now doing better than the rest of the nation.
"In comparison with the rest of the country, the coastal regions of our nation as well as the dessert are doing better on a percentage basis than many other interior markets," said Ron Shuffield, president of Esslinger-Wooten-Maxwell Realty. "We have a considerable number of international buyers and second-home buyers. Now, our prices today have rolled back about ten years."
Besides Miami, regions like Southern California, Tucson and Las Vegas are seeing an increase in the number of units sold while places like the Midwest have taken a hit.
"We are outperforming the nation by far," said Ralph De Martino, president of Ocean International Realty.
Nationwide, the number of sales has increased 2% while in Florida they have increased 15%, he said.
"The sales this year are way up from last year, and that's because all the regular buyers that were thinking that the market was falling aren't thinking that anymore," he said.
Experts agree that international buyers' demand has helped fuel the market as they see Miami as a place of opportunity, with desirable climate and location.
In addition, the exchange rates of many foreign currencies make investing in the US an attractive opportunity, whether it's to have a second home or to purchase a condo to rent out.
According to data from the Miami Association of Realtors, Florida has come out in the No.1 spot in terms of sales to international buyers since 2009, followed by California, which used to lead the pack.
An estimated 26% of Miami realtors got half or more of their business from international clients in the past year, and 69% of Miami realtors closed at least one international deal in the last 12 months.
"There's no other market in the US that can boast these kinds of statistics," said Teresa King Kinney, CEO for the Miami Association of Realtors, during the 17th annual Miami International Real Estate Congress.
"You're getting a lot of Venezuelans, Canadians, Brazilians because they feel like there's a bargain," said Michael Pappas, president and CEO of The Keyes Co.
"We had a catastrophe: overbuilding and loose money," he said. "We're starting to see the light at the end of the tunnel."
Miami housing market rebounds to outperform the nation
By Patricia Hoyos
"In comparison with the rest of the country, the coastal regions of our nation as well as the dessert are doing better on a percentage basis than many other interior markets," said Ron Shuffield, president of Esslinger-Wooten-Maxwell Realty. "We have a considerable number of international buyers and second-home buyers. Now, our prices today have rolled back about ten years."
Besides Miami, regions like Southern California, Tucson and Las Vegas are seeing an increase in the number of units sold while places like the Midwest have taken a hit.
"We are outperforming the nation by far," said Ralph De Martino, president of Ocean International Realty.
Nationwide, the number of sales has increased 2% while in Florida they have increased 15%, he said.
"The sales this year are way up from last year, and that's because all the regular buyers that were thinking that the market was falling aren't thinking that anymore," he said.
Experts agree that international buyers' demand has helped fuel the market as they see Miami as a place of opportunity, with desirable climate and location.
In addition, the exchange rates of many foreign currencies make investing in the US an attractive opportunity, whether it's to have a second home or to purchase a condo to rent out.
According to data from the Miami Association of Realtors, Florida has come out in the No.1 spot in terms of sales to international buyers since 2009, followed by California, which used to lead the pack.
An estimated 26% of Miami realtors got half or more of their business from international clients in the past year, and 69% of Miami realtors closed at least one international deal in the last 12 months.
"There's no other market in the US that can boast these kinds of statistics," said Teresa King Kinney, CEO for the Miami Association of Realtors, during the 17th annual Miami International Real Estate Congress.
"You're getting a lot of Venezuelans, Canadians, Brazilians because they feel like there's a bargain," said Michael Pappas, president and CEO of The Keyes Co.
"We had a catastrophe: overbuilding and loose money," he said. "We're starting to see the light at the end of the tunnel."
Miami housing market rebounds to outperform the nation
By Patricia Hoyos
Miami residential sales jump 51 percent in third quarter: report
The sales of single-family homes and condominiums in Miami-Dade County rose by 51 percent in the third quarter, according to a report from the Miami Association of Realtors. It was the 13th consecutive quarter of increasing sales in Miami. The average sales price of single-family homes also rose, jumping 19 percent, and the average sales price of condos jumped by 21 percent. "Strong demand from international buyers is fueling robust sales activity in Miami despite low consumer confidence and high unemployment," said Jack Levine, chairman of the board of the Miami Association of Realtors. "Local sales are expected to set a record this year that should exceed the height of the boom in 2005." Total housing inventory in Miami-Dade County fell 38 percent from the same period in 2010, with a 65 percent total drop since August 2008. -- Alexander Britell
69.6% of Americans say housing will influence their 2012 vote
CAMPBELL, Calif. – Nov. 9, 2011 – Candidate positions on housing will be important considerations to 69.6 percent of Americans in the 2012 presidential and congressional elections, according to a new survey released by Move Inc., the oversight company of Realtor.com. This is especially true for Millennials (70.7 percent), the next generation of homebuyers.
According to the survey, 81.7 percent of Americans consider housing a critical piece of the national economic recovery. Nearly three quarters of Americans (73.1 percent) believe conditions for buying a home a year from now will be the same or worse than today, while 23.2 percent expect homebuying conditions to improve.
Helping homeowners avoid foreclosure remains a top housing priority for the next president’s first 100 days in office. One in three (30.9 percent) Americans today think helping homeowners avoid foreclosure should be the next president’s priority in the first 100 days in office. Keeping interest rates low (26.4 percent) ranked second and making more affordable mortgage credit available (14 percent) placed third.
However, views are mixed when it comes to increasing or decreasing the role of government in housing. One in three Americans (31 percent) said the role of government in housing should remain the same as it is today, while one in five (21.3 percent) said it should be increased. Forty-two percent said government’s role in housing should be reduced, especially Americans ages 35 to 64 (56.7 percent). Just over two-thirds (67.4 percent) of Millennials said the president and Congress should reduce or keep the role of government in housing the same.
Other survey results:
• While 27.3 percent of Americans plan to buy a home in the future, only two percent plan to purchase in the next 12 months, and 23.1 percent say they’ve delayed purchasing a home because of the real estate market in their area.
• Three factors – uncertainty about future prices, concern about the economy and jobs, and difficulty saving for downpayments – are causing buyers to delay their purchases, effectively reducing near-term demand.
• 55.1 percent of Americans postponing a home purchase lack money for a downpayment or closing costs. Some 52.5 percent said they’re concerned about their jobs or lack confidence in the economy as a whole. Half (53.1 percent) are waiting for home prices to stabilize or increase. More than one third (34.6 percent) said their inability to get credit or find affordable credit is a reason why they’re waiting to buy.
• Perceptions on affordability have deteriorated in the past 18 months. In March 2010, 45.4 percent said they thought a median income family could afford more than half (50 percent) of the homes for sale in their neighborhood. Today, only 32 percent said they think median income families can afford more than half.
• The number of homeowners who delayed selling a home (17.5 percent) has not grown in the past 18 months, and actually declined slightly (-1.7 percent), which suggests the pending supply of ‘visible’ homes is showing signs of stabilization. However, more homeowners ages 35 to 49 (22 percent) and those making $40,000-$49,000 a year (21 percent) said they’ve delayed selling their home in the past year as compared to other respondents. This may indicate growing families in need of more space are having a difficult time moving up as a result of today’s market conditions.
• Today’s homeowners are less tempted to sell in response to incremental price increases than they were in 2009. Price increases in June 2009 of 20 percent or less would have motivated 61.6 percent of homeowners to sell. Today, however, price increases of 20 percent or less would motivate 55.4 percent. Based on the survey, a 5 percent increase in prices today would motivate 11.7 percent of owners to sell their home.
• 61 percent of those who plan to buy a home say they’d be first-time homebuyers, and 76.6 percent are Millennials. Large majorities of Americans – Millennials included – believe their family must be happy in their home (94.1 percent), that they are very picky when it comes to finding a home (80.3 percent), and that their home defines them; it’s part of who they are (75.1 percent).
• Millennials and older Americans have different perceptions. While 40.9 percent of Millennials think they should spend 30 to 60 percent of their gross monthly income on housing, older Americans (56.4 percent) said they plan to spend less than 30 percent.
• 61.9 percent of Millennials think of their home as a place to live, compared to 24.8 percent who think of their home as an investment. Almost all Millennials (95.3 percent) say they think of their home as a place where they can retreat from the world and relax.
© 2011 Florida Realtors®
6 Tips to Expedited Freddie Mac Short Sales
From the Miami Herald, "In the third quarter of this year, Freddie Mac repossessed 24,385
REASONS FREDDIE MAC SHORT SALES WON'T CLOSE:
1. Freddie Mac does not pursue deficiency judgements, however, they will not put that in writing . (Why not? Quite often short sales don't close because the Lender requires a cash contribution from the Seller which he, the Seller, is only willing to give if the Lender waives the deficiency). You can call Freddie Mac and they will tell you , ON THE PHONE, VERBALLY , that they don't pursue deficiencies, but they won't put it in writing!!!!!
2. Freddie Mac will only pay 10% to the junior liens with a $6000 cap. More often than not, the second Lenders require much more than that and the only way the short sale goes through is if the Seller or the Buyer pay the premium the second lender is requiring. Freddie Mac will not allow anyone to pay a greater amount to the junior lien holder. This will put an end to many short sales. Anyone paying additional monies to the junior lien holder will be committing a RESPA violation and mortgage fraud!!
3. Freddie Mac will not allow anyone to pay a large Homeowner or Condominuim Association balance. I believe the rule is one year or 1% of the mortgage amount. The majority of short sales we are closing have large Association balances which are being paid by the Seller or the Buyer or they cannot close. Homeowners and Condominuim Associations in Florida can be very difficult to deal with. Quite often they would rather foreclose before the Lender if they cannot collect a full payoff that includes late fees, interest, and attorney fees! More often than not, these deals only close when the Buyer or Seller pay these huge delinquincies!!!
4. If the investor is Freddie Mac, make sure you submit it for HAFA before you have an offer. Once you have an offer it is too late to apply for HAFA! This means as soon as you take a listing, find out who the investor is before you market the property!
5. If the only thing the borrower has defaulted on is their Freddie Mac loan, this is not viewed favorably by Freddie Mac. This is a red flag that the borrower is not experiencing a true hardship and their short sale will be subject to stricter scrutiny.
6. When working with a Freddie Mac loan, ask the servicer if they have delegated authority.(They are able to make decisionsons on their own without going back to the investor). Chase, Wells Fargo and Bank of America have delegated authority on 78% of these loans under a certain amount. What is that amount? I don't know, they wouldn't tell us! How helpful!
Is it any wonder that Freddie Mac, who owns nearly 60,000 properties nationwide, only cut it's inventory by 1000 homes this last quarter? With guidelines this strict they will not be cutting their inventory and the majority of its properties will go into foreclosure. Given their strict guidelines, it will be very difficult to short sale their properties!!!
Before you undertake negotiations on a short sale where the investor is Freddie Mac, find out if there is a large HOA or COA balance and determine what the junior lien holder requires before wasting your time,
"South Florida foreclosures", "Florida foreclosure list", "Florida housing market values", "Miami Distressed Commercial investments", "South Florida real estate deals", "Miami courthouse auctions", "Miami courthouse foreclosures", "Florida spec homes"
Thursday, November 3, 2011
10 cities that have seen the largest percentage
10 Cities Where List Prices Are Rising the Most
Daily Real Estate News | Wednesday, November 02, 2011
Which cities are seeing median list prices increase the most? Nationally, median list prices have risen 1.60 percent to $190,000, according to year-over-year listing data from September 2011 by Realtor.com, based on 146 markets.
Yet, in some cities, median list prices in that time frame have risen more than 20 percent. Florida cities, in particular, are continuing to see some of the largest rebounds in list prices.
Here are the 10 cities that have seen the largest percentage increases in median list prices based on year-over-year data from September:
1. Fort Myers-Cape Coral, Fla.
Year-over-year median list price increase: 34.46%
Median list price: $215,000
2. Miami, Fla.
Year-over-year median list price increase: 25.63%
Median list price: $250,000
3. Naples, Fla.
Year-over-year median list price increase: 23.41%
Median list price: $369,000
4. Sarasota-Bradenton, Fla.
Year-over-year median list price increase: 16.53%
Median list price: $233,000
5. Punta Gorda, Fla.
Year-over-year median list price increase: 14.07%
Median list price: $169,000
6. Shreveport-Bossier City, La.
Year-over-year median list price increase: 12.22%
Median list price: $176,750
7. Lakeland-Winter Haven, Fla.
Year-over-year median list price increase: 11.93%
Median list price: $129,500
8. Fort Wayne, Ind.
Year-over-year median list price increase: 11.77%
Median list price: $112,000
9. Daytona Beach, Fla.
Year-over-year median list price increase: 11.32%
Median list price: $178,000
10. Boise City, Idaho
Year-over-year median list price increase: 10.58%
Median list price: $150,000
By Melissa Dittmann Tracey, REALTOR® Magazine Daily News
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