Archive for 'Real estate'

The latest statistics from Corelogic shows that completed foreclosures continue dropping and are at their lowest numbers since 2007.  The numbers for mortgages in default over 90 days have also declined from a year ago.

CoreLogic® (NYSE: CLGX), a leading global property information, analytics and data-enabled services provider, today released its June 2015 National Foreclosure Report which shows that the foreclosure inventory declined by 28.9 percent and completed foreclosures declined by 14.8 percent since June 2014. The number of foreclosures nationwide decreased year over year from 50,000 in June 2014 to 43,000 in June 2015, representing a decrease of 63.3 percent from the peak of 117,119 completed foreclosures in September 2010, according to CoreLogic data.

Experience the interactive Multimedia News Release here:  http://www.multivu.com/players/English/71280543-corelogic-june-2015-foreclosures/

Completed foreclosures are an indication of the total number of homes actually lost to foreclosure. Since the financial crisis began in September 2008, there have been approximately 5.8 million completed foreclosures across the country, and since home ownership rates peaked in the second quarter of 2004, there have been approximately 7.8 million homes lost to foreclosure.

As of June 2015, the national foreclosure inventory included approximately 472,000, or 1.2 percent, of all homes with a mortgage compared with 664,000 homes, or 1.7 percent, in June 2014. The June 2015 foreclosure rate is the lowest since December 2007.

CoreLogic also reports that the number of mortgages in serious delinquency (defined as 90 days or more past due, including those loans in foreclosure or REO) declined by 23.3 percent from June 2014 to June 2015, with 1.3 million mortgages, or 3.5 percent, falling into this category. This is the lowest serious delinquency rate since January 2008. On a month-over-month basis, the number of seriously delinquent mortgages declined by 3.4 percent.

“The foreclosure rate for the U.S. has dropped to its lowest level since 2007, supported by a continuing decline in loans made before 2009, gains in employment, and higher housing prices,” said Frank Nothaft, chief economist for CoreLogic. “The decline has not been uniform geographically, as the foreclosure rate varies across metropolitan areas. In the Denver and San Francisco areas, the foreclosure rate has fallen to 0.3 percent, whereas in the Tampa market the rate is 3.5 percent and in Nassau and Suffolk counties it is an elevated 4.8 percent.”

“Serious delinquency is at the lowest level in seven and a half years reflecting the benefits of slow but steady improvements in the economy and rising home prices,” said Anand Nallathambi, president and CEO of CoreLogic. “We are also seeing the positive impact of more stringent underwriting criteria for loans originated since 2009 which has helped to lower the national seriously delinquent rate.”

Additional highlights as of June 2015:

  • On a month-over-month basis, completed foreclosures increased by 4.8 percent from the 41,000* reported in May 2015*. As a basis of comparison, before the decline in the housing market in 2007, completed foreclosures averaged 21,000 per month nationwide between 2000 and 2006.
  • The five states with the highest number of completed foreclosures for the 12 months ending in June 2015 were: Florida (102,000), Michigan (46,000), Texas (33,000), California (29,000) and Ohio (27,000). These five states accounted for almost half of all completed foreclosures nationally.
  • Four states and the District of Columbia had the lowest number of completed foreclosures for the 12 months ending in June 2015: South Dakota (32), the District of Columbia (107), North Dakota (313), Wyoming (499) and West Virginia (566).
  • Four states and the District of Columbia had the highest foreclosure inventory as a percentage of all mortgaged homes: New Jersey (4.7 percent), New York (3.7 percent), Florida (2.7 percent), Hawaii (2.5 percent) and the District of Columbia (2.4 percent).
  • The five states with the lowest foreclosure inventory as a percentage of all mortgaged homes were: Alaska (0.3 percent), Minnesota (0.4 percent), Montana (0.4 percent) Nebraska (0.4 percent) and North Dakota (0.4 percent).

*May 2015 data was revised. Revisions are standard, and to ensure accuracy CoreLogic incorporates newly released data to provide updated results.

Judicial Foreclosure States Ranking (Ranked by Completed Foreclosures)

Non-Judicial Foreclosure States Ranking (Ranked by Completed Foreclosures)

Foreclosure Data for the Largest Core Based Statistical Areas (CBSAs) (Ranked by Completed Foreclosures)

Figure 1 – Number of Mortgaged Homes per Completed Foreclosure

Figure 2 – Foreclosure Inventory as of June 2015

Figure 3 – Foreclosure Inventory by State

For ongoing housing trends and data, visit the CoreLogic Insights Blog: http://www.corelogic.com/blog.

Methodology
The data in this report represents foreclosure activity reported through June 2015.

This report separates state data into judicial versus non-judicial foreclosure state categories. In judicial foreclosure states, lenders must provide evidence to the courts of delinquency in order to move a borrower into foreclosure. In non-judicial foreclosure states, lenders can issue notices of default directly to the borrower without court intervention. This is an important distinction since judicial states, as a rule, have longer foreclosure timelines, thus affecting foreclosure statistics.

A completed foreclosure occurs when a property is auctioned and results in the purchase of the home at auction by either a third party, such as an investor, or by the lender. If the home is purchased by the lender, it is moved into the lender’s real estate-owned (REO) inventory. In “foreclosure by advertisement” states, a redemption period begins after the auction and runs for a statutory period, e.g., six months. During that period, the borrower may regain the foreclosed home by paying all amounts due as calculated under the statute. For purposes of this Foreclosure Report, because so few homes are actually redeemed following an auction, it is assumed that the foreclosure process ends in “foreclosure by advertisement” states at the completion of the auction.

The foreclosure inventory represents the number and share of mortgaged homes that have been placed into the process of foreclosure by the mortgage servicer. Mortgage servicers start the foreclosure process when the mortgage reaches a specific level of serious delinquency as dictated by the investor for the mortgage loan. Once a foreclosure is “started,” and absent the borrower paying all amounts necessary to halt the foreclosure, the home remains in foreclosure until the completed foreclosure results in the sale to a third party at auction or the home enters the lender’s REO inventory. The data in this report accounts for only first liens against a property and does not include secondary liens. The foreclosure inventory is measured only against homes that have an outstanding mortgage. Generally, homes with no mortgage liens are not subject to foreclosure and are, therefore, excluded from the analysis. Approximately one-third of homes nationally are owned outright and do not have a mortgage. CoreLogic has approximately 85 percent coverage of U.S. foreclosure data.

Source: CoreLogic
The data provided is for use only by the primary recipient or the primary recipient’s publication or broadcast. This data may not be re-sold, republished or licensed to any other source, including publications and sources owned by the primary recipient’s parent company without prior written permission from CoreLogic. Any CoreLogic data used for publication or broadcast, in whole or in part, must be sourced as coming from CoreLogic, a data and analytics company. For use with broadcast or web content, the citation must directly accompany first reference of the data. If the data is illustrated with maps, charts, graphs or other visual elements, the CoreLogic logo must be included on screen or website. For questions, analysis or interpretation of the data, contact Lori Guyton at lguyton@cvic.com or Bill Campbell at bill@campbelllewis.com. Data provided may not be modified without the prior written permission of CoreLogic. Do not use the data in any unlawful manner. This data is compiled from public records, contributory databases and proprietary analytics, and its accuracy is dependent upon these sources.

About CoreLogic
CoreLogic (NYSE: CLGX) is a leading global property information, analytics and data-enabled services provider. The company’s combined data from public, contributory and proprietary sources includes over 4.5 billion records spanning more than 50 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets, and the public sector. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and managed services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. Headquartered in Irvine, Calif., CoreLogic operates in North America, Western Europe and Asia Pacific. For more information, please visit www.corelogic.com.

CORELOGIC and the CoreLogic logo are trademarks of CoreLogic, Inc. and/or its subsidiaries.

CONTACT: For real estate industry and trade media: Bill Campbell, bill@campbelllewis.com, 212-995-8057; For general news media: Lori Guyton, lguyton@cvic.com, 901-277-6066

RELATED LINKS http://www.corelogic.com

Home Sales for Ultra Wealthy Picking Up Steam

The housing market has it’s ups and downs for all of us, even the ultra rich. With the high end market being flat about a year and a half ago,  it’s now on the uptrend and has been for over a year.  The super rich are now buying up these mega mansions for investment purposes and for other reasons as well.

A growing number of ultra high net worth (UHNW) individuals view homes as ‘opportunity gateways’, driving buying decisions that are based on potential opportunities from owning these luxury residential properties, according to the latest study by Wealth-X and the Sotheby’s International Realty® brand released today.

The UHNW Luxury Real Estate Report: Homes As Opportunity Gateways reveals two trends that are fueling the rise in the number of ultra wealthy individuals who are buying luxury homes:

(1)  International home-buying by UHNW individuals (defined as those with at least US$30 million in assets) from emerging nations seeking a safe investment diversification.
(2)  Home-buying as part of a program to gain citizenship or residency status in foreign nations.

The report provides insight into the UHNW residential real estate opportunities in Sydney and Vancouver for buyers seeking safe investment diversification; and Malta, the Bahamas and Sao Paulo, which may appeal to ultra wealthy buyers who are seeking citizenship or residency through property investment.

The UHNW Residential Real Estate index, tracked by Wealth-X, rose to 115.2 in Q2 2015, an 8.3% rise year-on-year, and the sixth consecutive quarter in which the index has risen. The continued rise in the index reflects the confidence of UHNW individuals to invest in luxury residential real estate.

The index takes into account the full range of luxury residential properties that are owned by the world’s wealthiest individuals. Wealth-X data shows there are 211,275 UHNW individuals globally, who collectively hold nearly US$3 trillion in real estate assets, equal to 10% of their net worth.

Below are other key findings from the report:

  • 12% of second homes purchased by UHNW individuals in emerging countries (those who reside in BRICS nations) are located outside their country of residence.
  • Recent market fluctuations in emerging nations are leading a new generation of UHNW investors to consider investing in luxury residential real estate in Western markets.
  • Chinese UHNW individuals make up the third largest share of foreign UHNW homeowners in the United States, behind only Canada and the United Kingdom.
  • Twenty nations in Europe and the Americas now offer citizenship or residency programs to individuals willing to invest in domestic residential real estate.
  • Many residential real estate markets with such programs – including Sao Paulo, Malta, and the Bahamas – offer good long-term investment opportunities.

Wealth-X President David Friedman commented: “Wealth-X is pleased to partner with the Sotheby’s International Realty brand for this third luxury real estate report for 2015. This new joint study explores the trends and home-buying motivations of a distinct group of ultra wealthy individuals in the emerging markets. As their wealth grows, so will their investment fueled by various motivations, be it to diversify their portfolio or to gain citizenship or residency in a foreign country.”

According to Philip White, president and chief executive officer, Sotheby’s International Realty Affiliates LLC, this joint report was designed to provide an understanding of the trends driving buying decisions of ultra high net worth individuals around the world. “The research reveals trends that go beyond traditional motivations and help guide real estate investments that contribute to long-term wealth,” he said.  “It underscores the important role real estate plays in a larger strategy to build a valuable asset portfolio.”

Download the report here.

About Wealth-X
Wealth-X is the global authority on wealth intelligence, providing sales, marketing, strategy and compliance solutions to clients in the financial services, luxury, not-for-profit and education sectors. Its award-winning research and thought leadership are regularly cited by the world’s media such as CNBC, Financial Times, Thomson Reuters and BBC. Wealth-X has more than 250 staff in 10 locations, including Singapore, London and New York. (www.wealthx.com)

About Sotheby’s International Realty Affiliates LLC
The Sotheby’s International Realty network currently has approximately 17,000 sales associates located in approximately 800 offices in 61 countries and territories worldwide. Founded in 1976 to provide independent brokerages with a powerful marketing and referral program for luxury listings, the Sotheby’s International Realty network was designed to connect the finest independent real estate companies to the most prestigious clientele in the world. Sotheby’s International Realty Affiliates LLC is a subsidiary of Realogy Holdings Corp. (NYSE: RLGY), a global leader in real estate franchising and provider of real estate brokerage, relocation and settlement services.  In February 2004, Realogy entered into a long-term strategic alliance with Sotheby’s, the operator of the auction house.  The agreement provided for the licensing of the Sotheby’s International Realty name and the development of a full franchise system. Affiliations in the system are granted only to brokerages and individuals meeting strict qualifications. Sotheby’s International Realty Affiliates LLC supports its affiliates with a host of operational, marketing, recruiting, educational and business development resources. Each Office is Independently Owned and Operated. Franchise affiliates also benefit from an association with the venerable Sotheby’s auction house, established in 1744.

CONTACT: Wealth-X media contact: Fauzi Ahmad, +65 8653 6514, fahmad@wealthx.com; Sotheby’s International Realty Affiliates LLC media contact: Lindsey Scharf, +1 (973) 407-5596, lindsey.scharf@sothebysrealty.com

RELATED LINKS http://www.wealthx.com

The report is in for the month of June and the results for home sales in California are showing positive once again according to the CALIFORNIA ASSOCIATION OF REALTORS®. Pending home sales were up again over 12 percent as compared to June  2014, marking the seventh straight month of year-to-year gains and the fifth straight month of double-digit advances. A breakdown of distressed sales by County is in the chart below.

LOS ANGELES, July 23, 2015 /PRNewswire-USNewswire/ — California pending home sales continued to gain steam in June, registering seven months of continued annual increases and the fifth consecutive month of double-digit increases, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today.

In a separate report, California REALTORS® responding to C.A.R.’s June Market Pulse Survey saw a reduction in floor calls, listing appointments, and open house traffic, compared with May. The Market Pulse Survey is a monthly online survey of more than 300 California REALTORS®, which measures data about their last closed transaction and sentiment about business activity in their market area for the previous month and the last year.

Pending home sales data:

  • California pending home sales were up 12.5 percent on an annual basis from the revised 107 index recorded in June 2014, marking the seventh straight month of year-to-year gains and the fifth straight month of double-digit advances.
  • Statewide pending home sales fell in June on a month-to-month basis, with the Pending Home Sales Index (PHSI)* decreasing 2.6 percent from a revised 123.6 in May to 120.4, based on signed contracts.  The month-to-month decrease was slightly below the average May-June loss of 1.9 percent observed in the last seven years.
  • A shortage of available homes in the San Francisco Bay Area stifled pending sales in June, pushing the PHSI to 127.9, down 5.3 percent from 135.1 in May and down 0.9 percent from the 129.1 index recorded in June 2014.
  • Pending home sales in Southern California continued last month’s increase by rising 4 percent in June to reach an index of 109.6, up 14.2 percent from the June 2014 index of 96.
  • Central Valley pending sales fell in June, dropping 8.2 percent from May to reach an index of 99.5 in June but up 14.2 percent from the 87.2 index of June 2014.

Equity and distressed housing market data:

  • The share of equity sales – or non-distressed property sales – declined slightly in June to make up 92.4 percent of all home sales, remaining near the highest level since late 2007. Equity sales made up 92.6 percent of all home sales in May and 89.9 percent in June 2014. The share of equity sales has been at or near 90 percent since mid-2014.
  • Conversely, the combined share of all distressed property sales (REOs and short sales) rose slightly in June, up to 7.6 percent from 7.4 percent in May. Distressed sales made up 10.1 percent of total sales a year ago. Ten of the 43 counties that C.A.R. reported showed month-to-month decreases in their distressed sales shares, with Alameda and Santa Clara having the smallest share of distressed sales at 1 percent, followed by San Mateo (2 percent), Contra Costa (3 percent), and San Francisco (3 percent). Glenn had the highest share of distressed sales at 27 percent, followed by Merced and Siskiyou (both at 23 percent).

June REALTOR® Market Pulse Survey**:

  • Reversing last month’s decrease, the share of sales closing below asking price increased to 43 percent in June, up from 40 percent in May, but down from the highest point of 55 percent in January 2015.  More than a third of homes (33 percent) closed over asking price, and 24 percent closed at asking price.
  • For the one in three homes that sold over asking price, the premium paid over asking price increased in June, suggesting increased market competition among home buyers in some local markets. In June, homes that sold above asking price sold for an average of 11 percent above asking price, up from 8 percent in May and 7.3 percent in June 2014.
  • The 43 percent of homes that sold below asking price sold for an average of 11 percent below asking price in June, up from 7 percent in May.
  • The share of properties receiving multiple offers was unchanged at 65 percent in June but down slightly from 66 percent in June 2014.
  • The average number of offers per property increased slightly to 2.9 from 2.8 in May and 2.7 in June 2014.
  • REALTOR® respondents reported that floor calls, listing appointments, and open house traffic all declined in June, compared with the previous month.
  • While the majority of REALTORS® (83 percent) expect better or similar market conditions over the next year, the percentage of REALTORS® who are optimistic about conditions over the coming year has been on the decline for the past six months from 62 percent in January to 44 percent in June.

Share of Distressed Sales to Total Sales
(Single-family)

Type of Sale

Jun-15

May-15

Jun-14

Equity Sales

92.4%

92.6%

89.9%

Total Distressed Sales

7.6%

7.4%

10.1%

     REOs

3.5%

3.6%

4.4%

     Short Sales

3.7%

3.4%

5.4%

     Other Distressed Sales (Not Specified) 

0.4%

0.4%

0.3%

All Sales 

100.0%

100.0%

100.0%

Single-family Distressed Home Sales by Select Counties
(Percent of total sales)

County

Jun-15

May-15

Jun-14

Alameda

1%

3%

4%

Amador

8%

9%

23%

Butte

9%

5%

8%

Calaveras

6%

10%

16%

Contra Costa

3%

2%

4%

El Dorado

8%

5%

12%

Fresno

10%

11%

17%

Glenn

27%

0%

21%

Humboldt

16%

14%

8%

Kern

9%

8%

11%

Kings

11%

13%

25%

Lake

18%

15%

23%

Los Angeles

8%

7%

10%

Madera

9%

5%

9%

Marin

4%

2%

3%

Mariposa

20%

18%

40%

Mendocino

20%

16%

10%

Merced

23%

16%

16%

Monterey

8%

7%

13%

Napa

12%

4%

6%

Orange

4%

4%

6%

Placer

5%

6%

7%

Plumas

20%

16%

18%

Riverside

10%

10%

13%

Sacramento

11%

10%

13%

San Benito

8%

6%

7%

San Bernardino

12%

10%

17%

San Diego

4%

5%

6%

San Francisco

3%

3%

3%

San Joaquin

12%

10%

14%

San Luis Obispo

4%

6%

5%

San Mateo

2%

1%

3%

Santa Clara

1%

1%

2%

Santa Cruz

4%

4%

7%

Shasta

8%

13%

14%

Siskiyou

23%

17%

19%

Solano

21%

9%

13%

Sonoma

9%

3%

6%

Stanislaus

11%

8%

12%

Sutter

12%

13%

8%

Tulare

14%

14%

21%

Yolo

5%

2%

12%

Yuba

18%

16%

9%

CALIFORNIA

8%

7%

10%

*Note:  C.A.R.’s pending sales information is generated from a survey of more than 70 associations of REALTORS® and MLSs throughout the state.  Pending home sales are forward-looking indicators of future home sales activity, offering solid information on future changes in the direction of the market.  A sale is listed as pending after a seller has accepted a sales contract on a property.  The majority of pending home sales usually becomes closed sales transactions one to two months later.  The year 2008 was used as the benchmark for the Pending Homes Sales Index.  An index of 100 is equal to the average level of contract activity during 2008.

**C.A.R.’s Market Pulse Survey is a monthly online survey of more than 300 California REALTORS® to measure data about their last closed transaction and sentiment about business activity in their market area for the previous month and the last year.

Leading the way…® in California real estate for 110 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with 175,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

SOURCE CALIFORNIA ASSOCIATION OF REALTORS

CONTACT: Mary Belongia, (213) 739-8363, maryb@car.org

RELATED LINKS
http://www.car.org

Zillow Reveals Top Sellers and Buyers Markets

Zillow

Zillow (Photo credit: damienvanachter)

Potential home sellers in many Western metro areas, including the Bay Area, Las Vegas and Phoenix, are well-positioned to take advantage of locally strong demand and are likely to have the upper hand in negotiations when selling their homes, according to the latest Zillow® ranking of national buyers’ and sellers’ markets.

For those looking to buy a home, Midwestern and Mid-Atlantic metros including Chicago, Cleveland and Philadelphia offer the most favorable conditions, with price discounts exceeding 5 percent in some areas and listings remaining active in some cases for 100 days or more.

Zillow analyzed data on actual sales prices compared to asking prices, the number of days listings spent on Zillow and the percentage of homes on the market with a price cut, and ranked the 30 largest metro areas in the country to determine whether buyers or sellers have more negotiating power in a given market. In this analysis, a sellers’ market is not necessarily one where home values are rising, but rather one in which homes are on the market for a shorter time, price cuts occur less frequently and homes are sold at prices very close to (or greater than) their last listing price. In buyers’ markets, homes for sale stay on the market longer, price cuts occur more frequently and homes are sold for less relative to their listing price, giving buyers more negotiating power.

“As most housing markets continue to improve nationwide, the relative position of buyers and sellers continues to vary considerably by geography,” said Zillow Chief Economist Stan Humphries. “In some markets, buyers are finding themselves in strong bargaining positions relative to sellers, confidently offering less than the asking price on a home they had months to consider. In other areas, it’s sellers that are squarely in the driver’s seat with their homes selling within days of listing, often after bidding wars that increase the sale price above the asking price.”

“Many of the strongest sellers’ markets are in areas that were hardest hit by the housing bust, places like California, Nevada and Arizona, which may seem counter-intuitive. But much of that strength is driven by investor interest, as many distressed and non-distressed homes are purchased and transformed into rentals. This investor activity is contributing to very low inventory levels, which increases demand and helps drive up prices, particularly for less expensive homes in these markets.”

Top 10 Sellers’ Markets Top  10 Buyers’ Markets
1. San Jose, Calif. 1. Chicago, Ill.
2. San Francisco, Calif. 2. Cleveland, Ohio
3. Sacramento, Calif. 3. Philadelphia, Pa.
4. Las Vegas, Nev. 4. Cincinnati, Ohio
5. Phoenix, Ariz. 5. New York, N.Y.
6. Riverside, Calif. 6. Pittsburgh, Pa.
7. Los Angeles, Calif. 7. Baltimore, Md.
8. San Diego, Calif. 8. St. Louis, Mo.
9. Seattle, Wash. 9. Columbus, Ohio
10. Washington, DC 10. Charlotte, N.C.

For a full ranking of metro areas, of the cities within a particular metro or for the data that went into the buyer/seller rankings, please see the full research brief or contact press@zillow.com.

About Zillow:
Zillow (NASDAQ: Z) is the leading real estate information marketplace, providing vital information about homes, real estate listings and mortgages through its website and mobile applications, enabling homeowners, buyers, sellers and renters to connect with real estate and mortgage professionals best suited to meet their needs. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow’s Chief Economist Dr. Stan Humphries. Dr. Humphries and his team of economists and data analysts produce extensive housing data and research covering more than 350 markets at Zillow Real Estate Research. Zillow, Inc. operates Zillow.com®, Zillow Mortgage Marketplace,  Zillow Rentals, Zillow Mobile, Postlets®, Diverse Solutions®, Buyfolio™ and Mortech™. The company is headquartered in Seattle.

Zillow.com, Zillow, Postlets and Diverse solutions are registered trademarks of Zillow, Inc. Buyfolio and Mortech are trademarks of Zillow, Inc.

CONTACT: Cory Hopkins, Zillow, +1-206-757-2701 or press@zillow.com

Web Site: http://www.zillow.com

Investment conditions have improved modestly across all property sectors, while property values remain flat and transaction volumes have decreased. These results were released today by CCIM Institute (www.ccim.com), one of the largest commercial real estate networks in the world, following a national third-quarter survey of CCIM members conducted by Real Estate Research Corp. (RERC).

Slow economic growth, high unemployment and anticipated federal tax increases are factors that continue to negatively impact the commercial investment environment, based on the report. The climate remains challenging for commercial real estate investors, who struggle to find viable opportunities in a slow-growth environment. A small silver lining – commercial real estate remains a reasonable and sturdy investment choice for investors seeking realistic returns and minimal volatility, according to CCIM members.

“Returns on investment income from commercial real estate can still be achieved over time for those with patience. There are plenty of investors seeking to avoid the volatility of the stock market, and who require higher yields than those offered by bonds and cash investments,” said Kenneth P. Riggs Jr., CCIM, CRE, MAI, chief real estate economist for the CCIM Institute and chairman and president of Real Estate Research Corp. “Commercial real estate is a good alternative for such investors, particularly those who are looking for income in a slow economy.”

Investment Conditions Improve
Investment condition ratings for all property types – office, industrial, retail, apartments and hotel – improved during third-quarter 2012, with the apartment sector receiving the highest score, at 7.6 on a scale of 1 to 10, with 10 being highest. The hotel and industrial sectors’ ratings rose to 5.9 and 5.6, respectively, followed by the 5.4 rating for the retail sector. The office sector investment rating rose to 4.8.

CCIM members said that the best investment strategies in this environment include buying low, keeping cash on hand for future opportunities and investing in foreclosed or distressed properties. Members also suggest looking long term and advise patience when investing.

Return vs. Risk and Value vs. Price Ratings Rise
CCIM members raised the return-versus-risk ratings and value-versus-price ratings for all property types and for commercial real estate overall during third-quarter 2012.

Specifically, the overall return-versus-risk rating for commercial real estate increased to 5.5 during third-quarter 2012, according to CCIM members. Likewise, the return-versus-risk ratings for all of the property types increased. At 7.2, the apartment sector earned the highest rating. The industrial sector rating, at 5.7, pulled away from the hotel sector rating of 5.6. The rating for the retail sector increased to 5.3, while the office sector rating remained the lowest, at 4.9, during third quarter.

CCIM members noted that the value-versus-price for commercial real estate increased during third-quarter 2012, with the overall value-versus-price rating increasing to 5.6. Although the overall value of commercial real estate improved only slightly, the value-versus-price ratings also increased for every property sector. The industrial sector rating increased to 5.6, and retained the highest rating among the property sectors. Similarly, while the retail sector’s rating rose to 5.3, the ratings for the office and apartment sectors each increased to 5.2. At 5.1, the hotel sector rating also increased, although the rating remained the lowest compared to the other property types.

Property Values Remain Flat
While commercial real estate seems to be holding its own with respect to income performance, property values remain flat and transaction volume declined in third-quarter 2012.

On a 12-month basis, transaction volume for all property types decreased with the exception of the industrial sector volume, which increased slightly. More specifically:

  • Hotel sector volume fell 25 percent.
  • Office and retail sectors volume declined approximately 15 percent and 10 percent, respectively.
  • Apartment sector volume decreased about 5 percent from the previous quarter.

“Get used to it, as this is the ‘new normal’ for the economy and we should expect this investment environment for the foreseeable future. The low-hanging fruit has been picked, and investors are adapting to the challenges we face. Risk-adjusted returns for commercial real estate are down from what we have seen, but fundamentals are steady and even improving slightly,” added Riggs. “With volume and prices for commercial properties flat or down on average (except for apartments) during third quarter, plus assurance from Bernanke that interest rates will be low until mid-2015, opportunities with reasonable prices may be found in increasing numbers of secondary and tertiary locations.”

Property Sector Highlights
Continuing a positive trend, the national vacancy rate for all property types continued to decline during third quarter 2012. Only the retail sector vacancy rate remained unchanged.

Other property sector highlights gleaned from the survey of CCIM members include:

  • The apartment sector remained the safest and best investment compared to the other property types during third-quarter 2012.
  • Compared to other property types, distressed and foreclosed office properties sold the best during third-quarter 2012.
  • Industrial properties are currently underpriced. Members suggest that investors should buy low, lease at market value and hold. There is not much demand for industrial properties in the East region due to oversupply.

The complete survey findings can be found at http://www.ccim.com/resources/itq-fourth-quarter-2012-rercccim-investment-trends-quarterly

About the Survey Methodology
The analysis provided in the RERC/CCIM Investment Trends Quarterly is conducted by Real Estate Research Corp. (RERC). The information is gathered in raw form from surveys sent to CCIM designees and candidates, and from sales transactions collected from various sources, including CCIM members, various key commercial information exchange organizations (CIEs), the media, assessors’ offices, RERC contacts in the marketplace, and other reliable public and private resources. All sales transactions are aggregated, analyzed, and reported on by RERC. The RERC/CCIM Investment Trends Quarterly report provides timely insight into transaction volume, pricing, and capitalization rates for the core income-producing properties.

About the CCIM Institute
Since 1969, the Chicago-based CCIM Institute has conferred the Certified Commercial Investment Member (CCIM) designation to commercial real estate and allied professionals through an extensive curriculum of 200 classroom hours and professional experiential requirements. The core curriculum addresses financial analysis, market analysis, user decision analysis, investment analysis, and negotiation—the cornerstones of commercial investment real estate.

An affiliate of the National Association of Realtors®, the CCIM Institute also offers powerful technology tools such as the Site To Do Business, an online site analysis and demographics resource, and CCIMREDEX, a single-entry listing and data exchange. Currently, there are nearly 10,000 CCIMs in 1,000 markets in the U.S. and 31 additional countries, with another 6,000 practitioners pursuing the designation, making the institute the governing body of one of the largest commercial real estate networks in the world. Visit www.ccim.com, www.stdbonline.com, and www.ccimredex.com for more information.

CONTACT: Amie DeLuca, +1-630-315-2962, amie@hensonconsulting.com

Real Estate Investors Buying Up Storm Damaged Homes

Union Holding Group, a Union County New Jersey-based Real Estate Investment Company, has ramped up their Cash for Houses Program in New Jersey in the wake of Hurricane Sandy.

Chief Marketing Officer, Chris Floor, said, “The damage Sandy brought is immense – rendering many houses impossible to sell or mortgage on the retail market.  Our Cash for Houses program is an easy way for homeowners to sell their property as-is – without needing to fix homes or bring them up to code to meet township certificate of occupancy standards.”

Many homeowners are still trying to salvage sentimental items among the damage – as well as awaiting insurance adjuster appointments so they can find out where they stand with their insurance claims.  Floor went on to say, “We know how difficult this situation can be – it’s their homes we’re talking about.  We offer sellers the flexibility to close when they want to – we’ve got plenty of work to do and we’ve had plenty of sellers that have already taken advantage of the Cash for Houses program.  Sellers can close when it’s most convenient for them – period.”

Getting cash for houses often sounds appealing – but it’s not for everyone.  Floor continued, “Some sellers are much more comfortable using a Realtor versus selling directly.  The issue there is many storm-damaged homes require extensive renovation – and it’s not easy to find available contractors as they’ve got their plates full with work.  Sellers seeking a fast sale – so they can move on quickly – are often the best candidate for the Cash for Houses program.”

Union Holding Group is a Union County New Jersey-based Real Estate Investment Company based in Cranford, NJ.  For more information call 866-910-5323 or visit www.houses4fastcash.com.

This press release was issued through eReleases® Press Release Distribution. For more information, visit http://www.ereleases.com.

Web Site: http://www.houses4fastcash.com

Florida Real Estate Prices Heading North

Pending sales, closed sales and median prices rose, while the inventory of homes and condos for sale dropped in Florida’s housing market in October, according to the latest housing data released by Florida Realtors®.

“With Thanksgiving just around the corner, we have a lot to be thankful for here in Florida,” said 2012 Florida Realtors President Summer Greene, regional manager of Better Homes and Gardens Real Estate Florida 1st in Fort Lauderdale. “The state’s latest unemployment rate fell to 8.5 percent, the lowest in nearly four years – and combined with the momentum of the housing market, it clearly shows that Florida is on a positive path and has been for months. Pending sales, closed sales and prices are trending up.”

Statewide closed sales of existing single-family homes totaled 17,779 in October, up 25.3 percent compared to the year-ago figure, according to data from Florida Realtors Industry Data and Analysis department and vendor partner 10K Research and Marketing. Closed sales typically occur 30 to 90 days after sales contracts are written.

Meanwhile, pending sales – contracts that are signed by not yet completed or closed – of existing single-family homes last month rose 56.7 percent over the previous October. The statewide median sales price for single-family existing homes in October was $145,000, up 9 percent from a year ago.

According to the National Association of Realtors® (NAR), the national median sales price for existing single-family homes in September 2012 was $184,300, up 11.4 percent from the previous year. In California, the statewide median sales price for single-family existing homes in September was $345,000; in Massachusetts, it was $294,900; in Maryland, it was $244,357; and in New York, it was $225,000.

The median is the midpoint; half the homes sold for more, half for less. Housing industry analysts note that sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes.

Looking at Florida’s year-to-year comparison for sales of townhomes-condos, a total of 8,252 units sold statewide last month, up 16.4 percent compared to October 2011. Meanwhile, pending sales for townhome-condos in October increased 47.1 percent compared to the year-ago figure. The statewide median for townhome-condo properties was $107,000, up 20.2 percent over the previous year. NAR reported that the national median existing condo price in September 2012 was $181,000.

The inventory for single-family homes stood at a 5.2-months’ supply in October; inventory for townhome-condo properties was also at a 5.2-months’ supply, according to Florida Realtors. Industry analysts note that a 5.5-months’ supply symbolically represents a market balanced between buyers and sellers.

“Once again, everything that should be going up in the market is going up, and everything that should be going down is going down,” said Florida Realtors Chief Economist Dr. John Tuccillo. “As impressive as the year-over-year gains for October are, far more impressive are year-to-date gains of 2012 over 2011. They indicate the depth and resilience of this recovery.”

The interest rate for a 30-year fixed-rate mortgage averaged 3.38 percent in October 2012, down from the 4.07 percent averaged during the same month a year earlier, according to Freddie Mac.

To see the full statewide housing activity report, go to Florida Realtors Media Center at http://media.floridarealtors.org/ and look under Latest Releases, or download the October 2012 data report PDF under Market Data at: http://media.floridarealtors.org/market-data

Editor’s Note : Florida Realtors 2012 housing market data releases mark a new statewide data reporting partnership between Florida Realtors Industry Data and Analysis department and new vendor partner 10K Research and Marketing. Housing sales data from the state’s local Realtor organizations is collected and organized with the goal of providing unique, localized market reports to the local Realtor boards and associations within Florida Realtors, enabling the groups and their Realtor members to serve as the definitive voice of real estate in their respective local markets. At the same time, Florida Realtors is providing comprehensive statewide housing market statistics – but this new data series only refers to statewide data and does not include metropolitan statistical areas (MSAs).

Florida Realtors®, formerly known as the Florida Association of Realtors®, serves as the voice for real estate in Florida. It provides programs, services, continuing education, research and legislative representation to its 115,000 members in 63 boards/associations. Florida Realtors® Media Center website is available at http://media.floridarealtors.org .

CONTACT: Marla Martin, Communications Manager, +1-407-438-1400 ext. 2326; or Jeff Zipper, Vice President of Communications, +1-407-438-1400, ext. 2314

Web Site: http://www.media.floridarealtors.org

Las Vegas Real Estate Setting Records for Sales

Las Vegas Homes

 

We knew it had to happen sooner or later. Nothing lasts forever, not even the low housing prices in Los Vegas. The investors are coming out of the woodwork and have snapped up about 60% of the homes in Vegas for cash. Read more about it here:

http://www.latimes.com/business/money/la-fi-mo-vegas-home-sales-20120328,0,3278002.story

Foreclosure Numbers Dropping

Foreclosure

The banks are reporting lower foreclosure numbers for the last quarter of 2011. Some of that can be attributed to the robo-signing fiasco and some to the new programs that the banks have put in place to help the home owner keep their home. The banks have become a little more flexible in dealing with these delinquent mortgages mainly because the tactics they were using before simply wasn’t working. You can read more about it here:

 

 

Mortgage Lenders vs The Scarecrow: If I Only Had a Brain

Are you kidding me? The Banks are just now paying homeowners to get out of a house they can’t afford anymore? They should have been doing this years ago instead of dragging out the short sale process and then delivering the big “No” months later. And then letting the house go through the foreclosure process, which eats up more time and costs them even more money in the process. Here’s one for you: “The banks have realized, ‘We are losing more on the foreclosures than the shorts,'” Augustyniak said. “And they are even willing to compensate the sellers, to give the sellers money to vacate the property.” Wow! What a revelation! Any half-assed Real Estate investor straight out of a short sale seminar in 2006 could have told them that. Guess it takes a while to sink in.

Chase Puts Their Money Where Their Mouth is With Large Short Sale Cash Incentive

McGeough Lamacchia Realty and Dorner Law negotiate a $35,000 payment to their short sale client at closing.

Quote startIt’s important for people who cannot pay their mortgage to be proactive with an alternative such as a short sale.Quote end

Chase Bank sent a homeowner (name withheld) a solicitation letter offering up to $35,000 to do a short sale. Back in August the homeowner called McGeough Lamacchia Realty right away and the home was listed for sale within two weeks.

Once an offer was obtained the staff at McGeough Lamacchia Realty and Dorner Law submitted a short sale package to Chase along with their solicitation letter to remind them that this $35,000 was offered. After five weeks of negotiating Chase not only offered a short sale approval and waived the entire deficiency balance but they agreed to pay this homeowner the entire $35,000.

Over the past year more major banks have realized that paying distressed homeowners a substantial sum is a great way to incentivize them to move out of the home they can no longer afford. Chase has been sending out these solicitation letters of up to $35,000 for about a year. Citi Mortgage has been paying up to $12,000 for about 6 months and Bank of America has most recently agreed to pay up to $20,000.

McGeough Lamacchia Realty and Dorner Law have negotiated large sums for its clients before, but this $35,000 is a new record that they are proud of. These programs are only offered on the loans where these banks actually own the mortgage. Most mortgages are being serviced by the large banks on behalf of one of the three GSE’s: Fannie Mae, Freddie Mac, and FHA (Federal Housing Administration). FHA does offer a $1,500 incentive to do a short sale under their Pre-Foreclosure Sale program. Fannie Mae and Freddie Mac do not currently offer any money unless the short sale is through the Treasury’s HAFA program.

Under the Treasury’s HAFA (Home Affordable Foreclosure Alternative) program which came out in April 2010, lenders are paying $3,000 to distressed homeowners who complete a short sale through the HAFA program.

“It is clear that the major banks have woken up and realized that a short sale is the best way to decrease losses and assist distressed homeowners in a graceful and dignified exit from their home. It’s unfortunate that Fannie Mae and Freddie Mac still haven’t seen the light,” says Anthony Lamacchia.

Short sales are increasing across the country for several reasons:

  •     They are becoming better known to distressed homeowners.
  •     Banks have realized that they save tremendous money through a short sale vs. a foreclosure
  •     Banks have finally hired more staff and are working hard to better their short sale processes
  •     All the major banks are now sending out letters offering short sales to homeowners who cannot qualify for a loan modification. Bank of America recently came out with a Home Transition Guide.
  •     Banks recognize that the sooner they get out of a non-performing loan the more money they save.

“I did my first short sale 20 years ago. They are a great alternative to foreclosure and it is nice to see more distressed homeowners are finally opting for them, especially now that these great incentives are being offered,” says Attorney Hillery Dorner.

Nationally short sales have increased 12% in 2011 and many believe they will increase by much more in 2012.

“One thing distressed homeowners need to know now is that banks will be foreclosing much faster in 2012 than they did in 2011 due to these robo-signing issues for the most part being worked out. Therefore it is important for people who cannot pay their mortgage to be proactive with an alternative such as a short sale,” says John McGeough.

For more on this story, visit the New England Short Sale Blog

About McGeough Lamacchia:

McGeough Lamacchia is the #1 Listing Agency in Massachusetts and named one of the Top 100 Real Estate Teams in the country by RealTrends and the Wall Street Journal. They are a full service real estate agency specializing in short sales in Massachusetts and New Hampshire.

So there you have it. All you seminar graduates, go out there and make some money.

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