A strong increase in the number of pending residential real estate sales in the US is being hailed as a sign that the property market is recovering.
Figures from the National Association of Realtors show that the number of contracts to buy rose 3.7% from September to October, the ninth straight month in a row that it has recorded an increase.
The group's index is now up 31.8% from last October, the biggest annual gain since it was created in 2001.
Source:http://www.nuwireinvestor.com/articles/boost-in-residential-real-estate-contracts-suggests-recovery-54184.aspx?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+nuwireinvestor%2Flatestnews+%28NuWire+Investor%3A+Latest+News%29&utm
Wednesday, December 9, 2009
Tuesday, December 1, 2009
Naples Luxury Waterfront Closed Sales - Gulf Harbor
Gulf Harbor Luxury Waterfront Homes, Naples, FL November 2009 Home Sales Report
Active - 7
Active with Contract - 1
Pending - 1
Closed - 1
Search Luxury Waterfront Homes for Sale
Contact Jim & Claudia Carrell Waterfront Real Estate Specialists
JimCarrell@aol.com
Reports gathered from SunshineMLS, Inc.
Active - 7
Active with Contract - 1
Pending - 1
Closed - 1
Search Luxury Waterfront Homes for Sale
Contact Jim & Claudia Carrell Waterfront Real Estate Specialists
JimCarrell@aol.com
Reports gathered from SunshineMLS, Inc.
Sunday, November 1, 2009
Naples Luxury Waterfront Closed Sales - Gulf Harbor
Gulf Harbor Luxury Waterfront Homes, Naples, FL October 2009 Home Sales Report
Active - 7
Active with Contract - 3
Pending - 2
Search Luxury Waterfront Homes for Sale
Contact Jim & Claudia Carrell Waterfront Real Estate Specialists
JimCarrell@aol.com
Reports gathered from SunshineMLS, Inc.
Active - 7
Active with Contract - 3
Pending - 2
Search Luxury Waterfront Homes for Sale
Contact Jim & Claudia Carrell Waterfront Real Estate Specialists
JimCarrell@aol.com
Reports gathered from SunshineMLS, Inc.
Tuesday, October 27, 2009
U.S. home sales beat forecast, rise 9.4 percent in September
WASHINGTON — Home resales rose in September to the highest level in more than two years, beating expectations, as buyers scrambled to complete their purchases before a tax credit for first-time owners expires.
The National Association of Realtors said Friday that sales rose 9.4 percent to a seasonally adjusted annual rate of 5.57 million in September, from a downwardly revised pace of 5.1 million in August. Sales had been expected to rise to an annual pace of 5.35 million, according to economists surveyed by Thomson Reuters.
The median sales price was $174,900, down 8.5 percent from a year earlier, and slightly lower than August's median of $177,300.
"There's a mini-boom going on in the housing market," said Thomas Popik, who conducts a monthly survey of real estate agents for Campbell Communications, a research firm.
The inventory of unsold homes on the market fell about 7 percent to 3.63 million. That's a 7.8 month supply at the current sales pace, and the lowest level since March 2007. Nationwide sales are up nearly 24 percent from their bottom in January, but are still down 23 percent from four years ago.
Sales rose around the country, especially in the West, where they grew 13 percent from a month earlier. Foreclosure sales are booming in cities like Los Angeles, San Diego and Las Vegas.
First-time homebuyers and investors are snapping up those homes and taking advantage of low mortgage rates. These buyers can also take advantage of a tax credit of 10 percent of the sales price, up to $8,000, if the sale is completed by the end of November.
The tax credit is so important to some buyers that they are adding a clause to their contracts, allowing them to back out if the sale doesn't close by Nov. 30.
While home sales and housing construction have risen steadily after hitting bottom earlier this year, most economists believe that the worst isn't over for home values.
Prices could see a double dip because rising unemployment is causing more foreclosures. The jobless rate, currently at 9.8 percent is expected to rise as high as 10.5 percent next year, causing more people to be unable to afford their monthly mortgage payment.
"There's more supply that's going to come into the marketplace," said Stan Humphries, chief economist at real estate Web site Zillow.com. "That additional supply will outpace demand."
With concerns about the housing market still prominent, Congress is considering several proposals to extend the tax credit for first-time buyers. Senators Johnny Isakson, R-Ga., and Christopher Dodd, D-Conn., want to extend it through June 30, and expand it to include all home buyers, at an estimated cost of $16.7 billion.
Realtors and homebuilders are pressing lawmakers to do so, arguing that the tax credit is crucial to get the housing market back on its feet.
"We are not there in terms of removing the consumer fear factor," said Lawrence Yun, the Realtors' chief economist.
One potential roadblock, however, emerged this week. There are concerns that some of the 1.5 million applications for the tax credit are fraudulent.
At a hearing on Thursday the Treasury Department's inspector general for taxes questioned the legitimacy of some 100,000 claims for the credit, potentially including some illegal immigrants and 580 people under 18. The youngest taxpayers to apply for the credit were 4 years old.
Source: http://www.naplesnews.com/news/2009/oct/23/us-home-sales-beat-forecast-rise-94-percent-septem/
The National Association of Realtors said Friday that sales rose 9.4 percent to a seasonally adjusted annual rate of 5.57 million in September, from a downwardly revised pace of 5.1 million in August. Sales had been expected to rise to an annual pace of 5.35 million, according to economists surveyed by Thomson Reuters.
The median sales price was $174,900, down 8.5 percent from a year earlier, and slightly lower than August's median of $177,300.
"There's a mini-boom going on in the housing market," said Thomas Popik, who conducts a monthly survey of real estate agents for Campbell Communications, a research firm.
The inventory of unsold homes on the market fell about 7 percent to 3.63 million. That's a 7.8 month supply at the current sales pace, and the lowest level since March 2007. Nationwide sales are up nearly 24 percent from their bottom in January, but are still down 23 percent from four years ago.
Sales rose around the country, especially in the West, where they grew 13 percent from a month earlier. Foreclosure sales are booming in cities like Los Angeles, San Diego and Las Vegas.
First-time homebuyers and investors are snapping up those homes and taking advantage of low mortgage rates. These buyers can also take advantage of a tax credit of 10 percent of the sales price, up to $8,000, if the sale is completed by the end of November.
The tax credit is so important to some buyers that they are adding a clause to their contracts, allowing them to back out if the sale doesn't close by Nov. 30.
While home sales and housing construction have risen steadily after hitting bottom earlier this year, most economists believe that the worst isn't over for home values.
Prices could see a double dip because rising unemployment is causing more foreclosures. The jobless rate, currently at 9.8 percent is expected to rise as high as 10.5 percent next year, causing more people to be unable to afford their monthly mortgage payment.
"There's more supply that's going to come into the marketplace," said Stan Humphries, chief economist at real estate Web site Zillow.com. "That additional supply will outpace demand."
With concerns about the housing market still prominent, Congress is considering several proposals to extend the tax credit for first-time buyers. Senators Johnny Isakson, R-Ga., and Christopher Dodd, D-Conn., want to extend it through June 30, and expand it to include all home buyers, at an estimated cost of $16.7 billion.
Realtors and homebuilders are pressing lawmakers to do so, arguing that the tax credit is crucial to get the housing market back on its feet.
"We are not there in terms of removing the consumer fear factor," said Lawrence Yun, the Realtors' chief economist.
One potential roadblock, however, emerged this week. There are concerns that some of the 1.5 million applications for the tax credit are fraudulent.
At a hearing on Thursday the Treasury Department's inspector general for taxes questioned the legitimacy of some 100,000 claims for the credit, potentially including some illegal immigrants and 580 people under 18. The youngest taxpayers to apply for the credit were 4 years old.
Source: http://www.naplesnews.com/news/2009/oct/23/us-home-sales-beat-forecast-rise-94-percent-septem/
Friday, October 23, 2009
Naples Luxury Waterfront Closed Sales
Gulf Harbor Luxury Waterfront Homes, Naples, FL September 2009 Home Sales Report
Active - 10
Active with Contract - 2
Pending - 2
Search Luxury Waterfront Homes for Sale
Contact Jim & Claudia Carrell Waterfront Real Estate Specialists
JimCarrell@aol.com
Reports gathered from SunshineMLS, Inc.
Active - 10
Active with Contract - 2
Pending - 2
Search Luxury Waterfront Homes for Sale
Contact Jim & Claudia Carrell Waterfront Real Estate Specialists
JimCarrell@aol.com
Reports gathered from SunshineMLS, Inc.
Tuesday, July 28, 2009
Housing Market Shows Some Signs Of Recovery
What do Boston, Charlotte, Chicago, Cleveland, Dallas, Minneapolis and San Francisco have in common? They’re cities where home prices rose recently. That’s according to the Standard & Poor’s Case-Shiller Home Price Index, which shows that prices are actually starting to rise again in some parts of the country. Other recent data shows that there are some tentative signs that the real estate market may be starting to recover.
“This is the first time in almost three years that we’ve seen price increases,” says Yale University Professor Robert Shiller, who helped design the home price index. “So when we see a break in the downward trend that’s definitely encouraging news.” For a long time Shiller was known as a pessimist about the housing market. And it turned out he was absolutely right. But now, he’s striking a different tone.
“Well, I think the worst is probably behind us — the worst pace of decline,” he says. “We were going down at 2 percent a month for a number of months in a row nationally. That was really something. Now home prices relative to rents or construction costs are back at normal levels.” source: npr.org
For those with cash in hand, now is the time to buy. For investors, the Naples Real Estate market offers many options as well as luxury homes for those wanting a vacation home.
“This is the first time in almost three years that we’ve seen price increases,” says Yale University Professor Robert Shiller, who helped design the home price index. “So when we see a break in the downward trend that’s definitely encouraging news.” For a long time Shiller was known as a pessimist about the housing market. And it turned out he was absolutely right. But now, he’s striking a different tone.
“Well, I think the worst is probably behind us — the worst pace of decline,” he says. “We were going down at 2 percent a month for a number of months in a row nationally. That was really something. Now home prices relative to rents or construction costs are back at normal levels.” source: npr.org
For those with cash in hand, now is the time to buy. For investors, the Naples Real Estate market offers many options as well as luxury homes for those wanting a vacation home.
Real Estate Sales Increase For Three Straight Months
Real estate agents in the US are reporting another increases in residential property sales, the third monthly rise in a row, giving rise to further talk of a recovery in the beleaguered property market.
The latest figures from the National Association of Realtors show that overall sales transactions increased 3.6% in June, just slightly below the year-ago level and at a quicker rate than expected. But house prices were still down 15.4% on a year ago. The average sale price now stands at $181,000.
But the figures are injecting hope into the troubled real estate market. ‘This is another hopeful sign. The housing market is healing,’ said Lawrence Yun, the association’s chief economist. ‘The increase in existing home sales occurred in all major regions of the country,’ he added. source: nuwireinvestor.com
Three straight months of increase of sales. This is one sure sign that not only has the market reached the bottom, but recovery is on its way for the US real estate market and the worst may be behind us.
The latest figures from the National Association of Realtors show that overall sales transactions increased 3.6% in June, just slightly below the year-ago level and at a quicker rate than expected. But house prices were still down 15.4% on a year ago. The average sale price now stands at $181,000.
But the figures are injecting hope into the troubled real estate market. ‘This is another hopeful sign. The housing market is healing,’ said Lawrence Yun, the association’s chief economist. ‘The increase in existing home sales occurred in all major regions of the country,’ he added. source: nuwireinvestor.com
Three straight months of increase of sales. This is one sure sign that not only has the market reached the bottom, but recovery is on its way for the US real estate market and the worst may be behind us.
Tuesday, July 7, 2009
First Time Home Buyer $8000 Tax Credit
Tax Credit at a Glance
• The tax credit is for first time home buyers or those who have not owned a home for the past 3 years.
• The tax credit does not have to be repaid. It’s a tax credit, not a tax deduction, if you qualify for $8,000 you get $8,000.
• The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
• The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
• Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit. Those with higher incomes may qualify for a partial tax credit.
For more detailed information and an extensive list of frequently asked questions, click the following link: http://www.federalhousingtaxcredit.com/2009/faq.php
Other Considerations:
• The tax credit can be claimed on 2008 income tax forms even though the purchase took place in 2009. A buyer could close on a home today, fill out their income tax forms the next day and receive the tax credit fairly quickly. Click on the link above for more details, and consult with your accountant.
The tax credit is not a down payment, but it could be used toward a down payment if first-time homebuyers plan ahead. U.S. taxpayers have money withheld from every paycheck for income taxes. By anticipating at least an $8,000 refund in early 2010 when they file 2009 taxes, these buyers could cut down on their tax withholding this year and save the money toward a down payment. There is one caveat, however: Should they not buy a home in the qualifying period, they would still owe the IRS the money, and reducing their withholding amount could result in a high bill at tax time. Click on the link above for more information.
• If purchasing a new home, the effective date to receive the credit is the first day the homeowner actually lives in the house. If construction began in 2008, that buyer could still qualify. And if construction begins in 2009 but the owner does not take possession until 2010, the buyer would not qualify.
• The tax credit is for first time home buyers or those who have not owned a home for the past 3 years.
• The tax credit does not have to be repaid. It’s a tax credit, not a tax deduction, if you qualify for $8,000 you get $8,000.
• The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
• The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
• Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit. Those with higher incomes may qualify for a partial tax credit.
For more detailed information and an extensive list of frequently asked questions, click the following link: http://www.federalhousingtaxcredit.com/2009/faq.php
Other Considerations:
• The tax credit can be claimed on 2008 income tax forms even though the purchase took place in 2009. A buyer could close on a home today, fill out their income tax forms the next day and receive the tax credit fairly quickly. Click on the link above for more details, and consult with your accountant.
The tax credit is not a down payment, but it could be used toward a down payment if first-time homebuyers plan ahead. U.S. taxpayers have money withheld from every paycheck for income taxes. By anticipating at least an $8,000 refund in early 2010 when they file 2009 taxes, these buyers could cut down on their tax withholding this year and save the money toward a down payment. There is one caveat, however: Should they not buy a home in the qualifying period, they would still owe the IRS the money, and reducing their withholding amount could result in a high bill at tax time. Click on the link above for more information.
• If purchasing a new home, the effective date to receive the credit is the first day the homeowner actually lives in the house. If construction began in 2008, that buyer could still qualify. And if construction begins in 2009 but the owner does not take possession until 2010, the buyer would not qualify.
Monday, July 6, 2009
Featured Condo for Sale - Naples Luxury Real Estate
FALLING WATERS - 2365 Hidden Lake Dr 4307 - Tour Now
View Naples Luxury Real Estate for Sale
Relax and enjoy this immaculate condo. Many upgrades such as brand new 3 door stainless steel refrigerator, new stainless steel microwave, california closet in master bedroom to mention a few. This condo features crown molding, tile in all living areas on the diagonal, neutral carpeting in the bedrooms, mirror and column detail in dining room, plantation shutters, upgraded lighting fixtures, along with a bonus room with a summer kitchen. Master bathroom has a jacuzzi tub, walk-in shower, dual sinks with vanity/makeup area, tiled surround with noche detail and separate water closet. This unit is equipped with a reverse osmosis water system that is connected to the regrigerator, and also has a humidistat. List of furniture that will stay with the condo will be furnished upon request.
Contact Jim & Claudia Carrell, Naples Luxury Real Estate Specialists
Wednesday, July 1, 2009
SOLD! - Naples Real Estate
BERKSHIRE LAKES - 174 BENNINGTON DR #3
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Cozy condo 2 bedroom 2 bath first floor Turnkey furnished just pack your bags as move right in. This beautifully furnished condo is in a great location, close to the white sandy beaches of Naples and also minutes from the highway. This home is in great condition, and shows little wear. An added bonus is a hide a bed located behind beautiful doors in between the front entry and living room, perfect when having company, This condo has a lovely landscaped view from the screened in lanai.
Contact Jim & Claudia Carrell, Naples Luxury Real Estate Specialists
Wednesday, June 24, 2009
SOLD! - Naples Real Estate
422 Leawood Cir
View Naples Luxury Real Estate for Sale
Location, location, location!! Quaint 2 bedroom 2 bath home, close to downtown and the soft sandy beaches. Enjoy this lovely home with large kitchen to the great room also provides views of the lake. Window coverings included. This is th eperfect home for a Naples getaway, or downsizing or even a starter home with one car garage and community pool.
Contact Jim & Claudia Carrell, Naples Luxury Real Estate Specialists
Tuesday, June 16, 2009
Overseas Investors Lift Florida Real Estate
International property investors are increasingly interested in buying real estate in Florida with foreclosed apartments at the top of their list.
Although local buyers are entering the market again it is foreign investors who want a holiday home or to invest in the long term that are pushing the market forward, according to a report from Gerson Lehman Group.
International buyers regard the Florida market as ‘desirable, profitable and secure,’ the report says.Analysts say that south Florida’s depressed real estate market is still about six months from rock bottom, but as bargain hunters are out in force prices could start rising again. Source: nuwireinvestor.com
With the influx of international investors and interest in Naples as well as Florida, could this situation start to push prices upward? Are the investors plucking up the “deals” before the local residents have a chance at them. For local buyers, it may be the motiviation needed to be able to jump off the fence and invest in the home.
View Naples Luxury Real Estate for Sale Now
Contact Us to receive the monthly Naples Real Estate eNewsletter
Although local buyers are entering the market again it is foreign investors who want a holiday home or to invest in the long term that are pushing the market forward, according to a report from Gerson Lehman Group.
International buyers regard the Florida market as ‘desirable, profitable and secure,’ the report says.Analysts say that south Florida’s depressed real estate market is still about six months from rock bottom, but as bargain hunters are out in force prices could start rising again. Source: nuwireinvestor.com
With the influx of international investors and interest in Naples as well as Florida, could this situation start to push prices upward? Are the investors plucking up the “deals” before the local residents have a chance at them. For local buyers, it may be the motiviation needed to be able to jump off the fence and invest in the home.
View Naples Luxury Real Estate for Sale Now
Contact Us to receive the monthly Naples Real Estate eNewsletter
Friday, June 12, 2009
Home sales rise 36 percent over a year ago in Naples area, NABOR reports
According to a report released early this afternoon by the Naples Area Board of Realtors: Overall pending home sales in the greater Naples area, which includes the Naples beach area, North Naples, central Naples, East Naples, Immokalee and Ave Maria, saw an increase of 101 percent with 1,029 pending sales in May compared to 511 in May 2008.
The report tracks home listings and sales within Collier County, excluding Marco Island.
The most encouraging statistic to date is that from 2008 to 2009 all geogrphic areas of Naples saw an increase of at least 50%. Inventory is decreasing and sales have seen a continued upward trend, could Naples be seeing the first signs of a positive market?
The available inventory decreased 10 percent to 10,046 in May compared to 11,175 in May 2008, NABOR reported. Source: Naplesnews.com
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Contact Us to receive the monthly Naples Real Estate eNewsletter
The report tracks home listings and sales within Collier County, excluding Marco Island.
The most encouraging statistic to date is that from 2008 to 2009 all geogrphic areas of Naples saw an increase of at least 50%. Inventory is decreasing and sales have seen a continued upward trend, could Naples be seeing the first signs of a positive market?
The available inventory decreased 10 percent to 10,046 in May compared to 11,175 in May 2008, NABOR reported. Source: Naplesnews.com
View Naples Luxury Real Estate for Sale Now
Contact Us to receive the monthly Naples Real Estate eNewsletter
Friday, May 8, 2009
Wednesday, April 22, 2009
Featured Home for Sale - Naples Luxury Real Estate
Maplewood - 286 Stanhope Cir
View Naples Luxury Real Estate for Sale
Well maintained single-family home in quiet neighborhood with park and community pool. 2 bedroom plus den (also great for use as an office, nursery or 3rd bedroom.) 2 bath, 2 car garage. Large back yard. Great location!!! Close to beach, 5th Avenue, Shopping and 1-75. New on market – Best value in Maplewood. At this price it won’t last long.
Contact Jim & Claudia Carrell, Naples Luxury Real Estate Specialists
Friday, March 27, 2009
Wednesday, March 4, 2009
Luxury Waterfront - Gulf Harbor Closed Sales
Gulf Harbor Luxury Waterfront Homes, Naples, FL February 2009 Home Sales Report
Active - 19
Pending - 3
Information gathered from SunshineMLS, Inc.
Search Luxury Waterfront Homes for Sale
Contact Jim & Claudia Carrell Waterfront Real Estate Specialists
JimCarrell@aol.com
Active - 19
Pending - 3
Information gathered from SunshineMLS, Inc.
Search Luxury Waterfront Homes for Sale
Contact Jim & Claudia Carrell Waterfront Real Estate Specialists
JimCarrell@aol.com
Saturday, February 28, 2009
The Housing Bailout: Do You Qualify?
It's been a busy week in the housing market "stabilization" business. If you're finding it hard to keep up, it's no surprise. The latest proposals have only been sketched out in broad strokes: More details are coming on March 4.
But here are broad points that you should know about:
1. To find out whether you qualify for the bailout, check your financial statements and do the math. Under the current proposal, you'll only qualify if your monthly payments are at least 38% of your income. Some people may have an incentive to quit their jobs, or at least dump their second job, to hit this threshold, because this bailout can be valuable.
2. If you are a responsible homeowner but are locked out of the refi market because the housing collapse wiped out your equity, you may benefit from the new refi assistance.
3. Anyone who hopes to qualify for either program should start gathering their paperwork now.
4. Many renters have been kicked out of their homes because deadbeat landlords walked away from their loans, leaving the banks to foreclose. If you're in that boat, good news: The administration is about to offer $1.5 billion in relocation and other forms of assistance.
5. Middle class taxpayers should take a look at one $8,000 freebie. Anyone who hasn't owned a home for at least three years is entitled to a helpful tax credit, for up to 10% of the cost, up to $8,000, if they buy a home this year.
6. Living in an expensive home in San Francisco or New York and missing out on the refi boom? Good news. The government just raised the "conforming loan" limits to $729,750 from $625,500,
7. This is a good time to get some double glazing, insulation, and other energy-efficient home improvements. The stimulus package gives a tax credit of up to $1,500, covering 30% of the costs.
8. And if grandma is looking for a reverse mortgage, the limits for reverse mortgages backed by the Federal Housing Administration have been raised to $625,000 from $417,000.
source: wsj.com
View Luxury Real Estate for Sale
But here are broad points that you should know about:
1. To find out whether you qualify for the bailout, check your financial statements and do the math. Under the current proposal, you'll only qualify if your monthly payments are at least 38% of your income. Some people may have an incentive to quit their jobs, or at least dump their second job, to hit this threshold, because this bailout can be valuable.
2. If you are a responsible homeowner but are locked out of the refi market because the housing collapse wiped out your equity, you may benefit from the new refi assistance.
3. Anyone who hopes to qualify for either program should start gathering their paperwork now.
4. Many renters have been kicked out of their homes because deadbeat landlords walked away from their loans, leaving the banks to foreclose. If you're in that boat, good news: The administration is about to offer $1.5 billion in relocation and other forms of assistance.
5. Middle class taxpayers should take a look at one $8,000 freebie. Anyone who hasn't owned a home for at least three years is entitled to a helpful tax credit, for up to 10% of the cost, up to $8,000, if they buy a home this year.
6. Living in an expensive home in San Francisco or New York and missing out on the refi boom? Good news. The government just raised the "conforming loan" limits to $729,750 from $625,500,
7. This is a good time to get some double glazing, insulation, and other energy-efficient home improvements. The stimulus package gives a tax credit of up to $1,500, covering 30% of the costs.
8. And if grandma is looking for a reverse mortgage, the limits for reverse mortgages backed by the Federal Housing Administration have been raised to $625,000 from $417,000.
source: wsj.com
View Luxury Real Estate for Sale
Saturday, February 21, 2009
Bargain-Hunters Descend, Cash in Hand
Falling home prices are spurring an increase in all-cash home sales in markets that have been hardest hit by the foreclosure crisis, an indication that bargain hunters have descended on the markets looking for deals.
Cash sales are up even more in many Florida markets. In Miami, cash offers accounted for 30% of sales last month, according to a report by Thomas Lawler, a housing economist based in Leesburg, Va. That share more than doubled in Gulf Coast communities such as Punta Gorda and Englewood, Fla., where cash financing accounted for 65% and 60% of sales, respectively.
Cash sales are typically higher in Florida than in other markets, in part because the state attracts lots of foreign buyers and retirees who are more likely to plunk down their savings without taking out a mortgage. But a number of cash buyers these days, in Florida and elsewhere, are also investors scooping up distressed properties and affluent families seeking relatively inexpensive vacation homes.
In some cases, cash buyers are finding that they can get a deeper discount by making an all-cash offer. In markets with a glut of foreclosed homes, lenders are becoming more aggressive to sell "simply because there aren't enough first-time home buyers around to sop up the excess supply," Mr. Lawler says.
source: wsj.com
Cash sales are up even more in many Florida markets. In Miami, cash offers accounted for 30% of sales last month, according to a report by Thomas Lawler, a housing economist based in Leesburg, Va. That share more than doubled in Gulf Coast communities such as Punta Gorda and Englewood, Fla., where cash financing accounted for 65% and 60% of sales, respectively.
Cash sales are typically higher in Florida than in other markets, in part because the state attracts lots of foreign buyers and retirees who are more likely to plunk down their savings without taking out a mortgage. But a number of cash buyers these days, in Florida and elsewhere, are also investors scooping up distressed properties and affluent families seeking relatively inexpensive vacation homes.
In some cases, cash buyers are finding that they can get a deeper discount by making an all-cash offer. In markets with a glut of foreclosed homes, lenders are becoming more aggressive to sell "simply because there aren't enough first-time home buyers around to sop up the excess supply," Mr. Lawler says.
source: wsj.com
Thursday, February 12, 2009
Renters Lose Edge on Homeowners
The relative cost of owning versus renting is swinging back in favor of homeownership in some U.S. markets, buoyed by several quarters of sharp declines in home prices.
At the height of the housing boom, as home prices surged, demand for rentals started to rise as the gap between owning and renting widened significantly. Even after the housing market soured, apartment demand grew as former homeowners became renters, allowing landlords to push healthy rent increases.
Now, after two years of rapid home-price depreciation, the relationship between the cost of rental payments versus after-tax mortgage payments is tilting toward ownership in a number of metropolitan areas.
"We're not saying on an absolute basis that it's cheaper to own a home, but on a relative basis...owning is looking much more attractive than it has in a long time," said Andrew McCulloch, a Green Street analyst.
A separate report by Moody's Economy.com also finds that home prices relative to rents are more in line with their historical relationship. Using data that measure average home prices and rent payments for 54 metro areas between 1984 and 2004, Moody's Economy.com estimated that eight markets are "undervalued." In those eight markets, home prices relative to rents are below or within 5% of their historical levels. "The bottom is coming into view," said Mark Zandi, chief economist at Moody's Economy.com, "But we've still got a ways to go."
Source: wsj.com
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At the height of the housing boom, as home prices surged, demand for rentals started to rise as the gap between owning and renting widened significantly. Even after the housing market soured, apartment demand grew as former homeowners became renters, allowing landlords to push healthy rent increases.
Now, after two years of rapid home-price depreciation, the relationship between the cost of rental payments versus after-tax mortgage payments is tilting toward ownership in a number of metropolitan areas.
"We're not saying on an absolute basis that it's cheaper to own a home, but on a relative basis...owning is looking much more attractive than it has in a long time," said Andrew McCulloch, a Green Street analyst.
A separate report by Moody's Economy.com also finds that home prices relative to rents are more in line with their historical relationship. Using data that measure average home prices and rent payments for 54 metro areas between 1984 and 2004, Moody's Economy.com estimated that eight markets are "undervalued." In those eight markets, home prices relative to rents are below or within 5% of their historical levels. "The bottom is coming into view," said Mark Zandi, chief economist at Moody's Economy.com, "But we've still got a ways to go."
Source: wsj.com
View Beachfront Homes & Condos for Sale
Monday, February 9, 2009
Millionaires Becoming More Interested in Real Estate
Don't look now, but those with a net worth of more than $1 million who may have gotten burned in the stock market are starting to get interested in one of the most basic of investments-real estate.
That's according to a recent Spectrum Group newsletter, Millionaire's Corner. Nearly 20% of high-net worth investors consider real estate a good investment and plan to buy more in the future, says Spectrem Group, a Chicago-based market research and consulting firm specializing in the affluent market. Moreover, a full 34% of millionaires between 25 and 45 are intrigued by real estate. The research came from online quanititative studies of more than 750 millionaires and focus groups in five cities conducted last fall.
The millionaires reported that since they don't know when the stock market is going to recover and with interest rates so low and real estate so depressed, "a lot of the people said they thought real estate looked interesting," George Walper Jr., president of Spectrum Group, told Barron's. He said the finding was consistent with research in a book he co-authored with Catherine McBreen, Get Rich, Stay Rich, Pass It On.
While the millionaires didn't specify the type of real estate they'd look at, Walper said he believes people are interested in income-producing properties like small apartment buildings or strip malls. That would be in keeping with activity by one supremely savvy investor- Warren Bufett's No. 2, Charlie Munger- who is said to be investing in a shopping center in California.
Source: Barron's, Jan. 26, 2009
View Luxury Real Estate for Sale
That's according to a recent Spectrum Group newsletter, Millionaire's Corner. Nearly 20% of high-net worth investors consider real estate a good investment and plan to buy more in the future, says Spectrem Group, a Chicago-based market research and consulting firm specializing in the affluent market. Moreover, a full 34% of millionaires between 25 and 45 are intrigued by real estate. The research came from online quanititative studies of more than 750 millionaires and focus groups in five cities conducted last fall.
The millionaires reported that since they don't know when the stock market is going to recover and with interest rates so low and real estate so depressed, "a lot of the people said they thought real estate looked interesting," George Walper Jr., president of Spectrum Group, told Barron's. He said the finding was consistent with research in a book he co-authored with Catherine McBreen, Get Rich, Stay Rich, Pass It On.
While the millionaires didn't specify the type of real estate they'd look at, Walper said he believes people are interested in income-producing properties like small apartment buildings or strip malls. That would be in keeping with activity by one supremely savvy investor- Warren Bufett's No. 2, Charlie Munger- who is said to be investing in a shopping center in California.
Source: Barron's, Jan. 26, 2009
View Luxury Real Estate for Sale
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