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10April

Tax Tips for Time-Crunched Real Estate Pros

tax tips for real estate professionalsThis year you get two additional days to submit tax returns. You have until April 17th; but you have a back-up option if you need it. An automatic extension can extend the due date for your return from April 17, to October 15, 2012.

An extension does not extend the due date for payment of taxes owed to the Internal Revenue Service, but it does buy additional time to submit the final tax form and documentation. Inman news contributor and tax expert Stephen Fishman outlined this option for time-challenged professionals.  If you opt for an extension, you still need to estimate 2011 taxes due and pay them by April 17th to avoid penalties and interest. Here’s a recap of the key points.

Extension Request Methods:

  • Submit the request electronically by filing Form 4868 (PDF): Application for Automatic Extension of Time to File U.S. Individual Tax Return online at www.IRS.gov or;
  • Print out Form 4868, complete it manually and mail to the address designated on the form or;
  • Use a tax preparation service provider firm to electronically submit payment and the extension request.

Option 1

Electronic filers will receive an acknowledgement or confirmation number for record-keeping purposes. There is no need to mail the completed form if filing electronically, however be sure to locate a copy of last year’s tax return prior to going online as information from last year’s return will be requested when completing the electronic extension request form.

Option 2

You may go to www.IRS.gov to locate the Form 4868 PDF, print and mail the completed from to the address indicated on the form. Include full or partial payment of 2011 taxes due when mailing.

Option 3

A third option is to enlist the services of an outside tax preparation provider.  Several offer free submission of Form 4868 through the “Free File” program. Access them through the IRS.gov website. Through them it is possible to pay all or part of 2011 taxes due, by phone or via online payment.

For more information, please join us at FirstPrestonHT.com or on our Facebook and Twitter pages.

5April

Home Prices and Rents Expected to Rise in 2013

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“While geopolitical and global economic events could change the forecast going forward, what we see in this survey is confidence that the U.S. real estate economy has weathered the brunt of the recent financial storm and is poised for significant improvement over the next three years.” -Patrick L. Phillips, CEO of the Urban Land Institute.

home prices and rents expected to rise in 2013The Urban Land Institute (ULI) surveyed 38 analysts and real estate economists and released the findings in the Real Estate Consensus Forecast, on Wednesday, March 28. DSNews reviewed the data and compiled a summary. This is a recap of key real estate related facts from the article.

The survey findings contain encouraging news for the real estate industry. Here are the projected trends:

  1. The institute expects housing starts to nearly double by 2014 and projects that home prices will begin to rise in 2013.
  2. According to the Federal Housing Finance Agency (FHFA) data, average home prices are “expected to stabilize” in 2012 and “increase by 2 percent in 2013 and 3.5 percent in 2014.”
  3. Single family housing starts are projected to elevate from the 2011 level of 428,000 to 800,000 in 2014.
  4. According to National Council of Real Estate Investment Fiduciaries (NCREIF) the expected 2012 return rate for apartment investments is 12.1 percent.
  5. Rental rate growth for apartments is forecast at 5 percent for 2012. It is expected to slow to 4 percent in 2013 and drop slightly to 3.8% in 2014.
  6. Unemployment rates are expected to continue to fall, hitting 8 percent by 2012 year-end, 7.5 percent by 2013 year-end and 6.9 percent by 2014 year-end.
  7. GDP is projected to increase by 2.5 percent in 2012 and expand to 3.2 percent in 2014.

The report warned that “with the improving economy is inflation and higher interest rates. These rising rates will increase costs for investors.” These findings together may prompt investors and prospective homebuyers to embrace current interest rates and take the plunge sooner rather than later.

Current markets represent historic buying opportunities for homebuyers and investors. The BidSelect® online marketplace is a powerful database of available properties spanning five channels of business. (Resale, short sale, foreclosure, rental, new construction) The resource features over 30,000 available properties and is free to homebuyers and investors.

For more information, please join us at FirstPrestonHT.com or on our Facebook and Twitter pages.

3April

Top 10 Highest Foreclosure Rate States

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top ten foreclosure statesDSNews.com recently published the “Top 10 Highest” foreclosure rate states. The lists were published in the DSJournal section of their February edition.  The rankings were based on foreclosure filings as a percentage of housing units by state in 2011. The data source is RealtyTrac.  The states with the 10 highest foreclosure rates were:

States & Percentage of Housing Units

  1. Nevada  6.4
  2. Arizona 4.41
  3. California 3.19
  4. Georgia 2.71
  5. Utah 2.32
  6. Michigan 2.32
  7. Florida 2.06
  8. Illinois 1.95
  9. Colorado 1.78
  10. Idaho 1.77

For more information, please join us at FirstPrestonHT.com or on our Facebook and Twitter pages.

27March

Top and Bottom First-Time Homebuyer Markets

Top and Bottom first time homebuyer marketsHousingwire Magazine profiled first-time homebuyers and first-time homebuyer markets in their March 2012 Investments Issue. Their research indicated home affordability, neighborhood safety and school quality are top criteria for first-time homebuyers.

Their list of top first-time buyer markets and bottom first-time homebuyer Markets utilized data from sources such as: The National Association of Home Builders, the U.S. Department of Education and the Federal Bureau of Investigation.

The rankings analyzed school quality, crime rate and unemployment rates to rank the 40 most affordable housing markets and the 40 least affordable markets.  Local school quality figures were given less weight than state school indicators because of the lack of availability of local stats. Here are the top five and bottom five, first-time homebuyer markets for 2012:

Top First-Time Homebuyer Markets

  1. Quad Cities, Iowa-Illinois
  2. Houston, TX
  3. Wichita, KS
  4. Lancaster, PA
  5. Lima, OH

Bottom First-Time Homebuyer Markets

  1. New York, NY
  2. Los Angeles, CA
  3. San Francisco, CA
  4. Orange County, CA
  5. Ocean City, NJ

Markets change constantly. As always, independent research with the help of a real estate professional is recommended.

For more information, please join us at FirstPrestonHT.com or on our Facebook and Twitter pages.

 

Source:  Housingwire Magazine.  First Home Hunting by Justin T. Hilley, Housingwire Magazine March 2012 Flip book article on Top and Bottom First-Time Homebuyer Markets. 

21March

Top and Bottom Home-Flipper Markets

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Home Flipper MarketsHousingwire Magazine’s March issue ranks several housing markets by buyer types. They are profiled into four categories: REO flipper, distressed property investor, second-time homebuyer and first time homebuyer. Each buyer type is profiled and interesting insights are offered about what appeals to each buyer type. We will recap the profiles for your review and feedback; beginning with the Top and Bottom Five “Flipper Markets.” The “Flipper” profile is limited to the “REO/abandoned/auction space. This is the couple of guys working on one home at a time crowd.”

Top Five “Home-Flipper Markets”

  1. Riverside, CA
  2. Washington, DC
  3. Salt Lake City, UT
  4. Phoenix, AZ
  5. Miami, FL
  6. Wild Card – Los Angeles, CA

The Bottom 5 “Home-Flipper Markets”

  1. New York, NY
  2. Chicago, IL
  3. Las Vegas, NV
  4. Detroit, MI
  5. Atlanta, GA

Top Five “Home-Flipper Markets” Key Stats

Riverside, CA – More FHA insured mortgages since 2008 than any US Metro at over 3500, totaling $671 million; second only to LA. Reo saturation is 42.2%. Formerly among top five foreclosure markets, recovering as unemployment dropped from 14.5% November 2010 to 12.5% in November2011.

Washington, DC – Great employment rate at 5.4%.  FHA insured over 1420 waiver mortgages since 2008 for $343 million.  REO saturation rate is low at 11.8%. Industry analyst Clear Capital projects 9.3% growth in home prices in 2012.

Salt Lake City, UT – Unemployment rate: 5.6%. #Waive Loans: 258 for $44.9 million. Strong demand. Expected 1%-3% home price increase this year.

Phoenix, AZ – Unemployment 7.7% in November. Projected 2012   saturation rate of 32.9%. Foreign buyers common. FHA insured over 3600 loans for $500 million on flipped homes.

Miami, FL – Unemployment 9.4% in November, down from previous year. Projected 2012 REO saturation rate of 31.3% with an 8.8 % growth in home prices.

Los Angeles – Unemployment 10.7%. FHA covered 2,378 loans for $633 million in funding for flipped properties.REO Saturation 28.9%. Clear Channel projects 10.3% price depreciation in 2012.

Five Bottom Home-Flipper Markets Key Stats

New York, NY – Unemployment 8.3% in November 2011. Only 228 FHA waiver loans were covered for $85.1 million. Avg. foreclosure timeframe 1,019 days. REO Saturation 7%.

Chicago, IL – Unemployment rate increased to 9.6% versus prior year.  Only 228 FHA waiver loans as $96.4 million written. Borrowers must be provided city-funded legal assistance to fight foreclosures. REO Saturation 29.9%, with housing prices expected to drop 5.2% in 2012.

Las Vegas, NV – Unemployment 12.5%. FHA participation in 1864 loans to flip-buyers for a total of $257 million. Per Housingwire, “highest foreclosure rate in the country.”

Detroit, MI – Unemployment fell to 9.5% in November. 149 FHA loans for a total of just $14.3 million. REO saturation high at 48.8%.

Atlanta, GA – Unemployment 9.2%. Clear Capital predicts prices will plunge 14.4% in 2012. Approximately 1000 FHA waiver loans equated to roughly $119 million. REO saturation 42.4%.

 

Note: Markets change constantly. As always independent research with the help of a real estate professional is recommended.

Source: Housingwire Magazine, March 2012 Investments Issue.  

16March

Top Five and Bottom Five Distressed Property Markets

Distressed PropertiesHousingwire Magazine took on the task of ranking the top five and bottom five distressed property markets in their March issue.  The rankings were preceded by an overview of the selection methodology. The tabulation criteria for the rankings included:  “Unemployment, year –to-date change in foreclosure filings, average discount on distressed-home sales compared with normal transactions and the length of the foreclosure timeline in the respective state. Foreclosure data comes from RealtyTrac and unemployment data is from the U.S. Department of Labor.”

The analysis is basically a measure of which markets were found to be most and least attractive to large scale investors who often employ a buy, rent and hold strategy.

Cities ranked high on the list of “Top Distressed Property Markets” are typically cities with significant quantities of steeply discounted inventory, and major upside profit potential.  “Bottom Distressed Property Markets”   are often those with healthy economic profiles, low unemployment levels, low foreclosure inventories and slow but steady price appreciation.

Being on either list has an upside.  Markets that are in recovery are often attractive to investors and rank among the “top distressed markets” while markets which have already recovered and have price appreciation are typically less attractive for investors and rank among the “bottom distressed markets.”  Markets with higher unemployment rates are almost always less appealing to investors.

Top Distressed Property Markets

  1. Minneapolis-St. Paul  – Not a foreclosure hotbed.  Good economy. Significant foreclosure inventory.  Low unemployment at 5.1%. Foreclosures down 44% year over year. Non-judicial foreclosures take  only 184 days.(4th Qtr. 2011)
  2. Houston – State laws favorable to investors. Nation’s shortest foreclosure interval at 90 days. Foreclosed property discount averages 38%. (3rd Qtr. 2011) Low unemployment at 7.6%.
  3. Phoenix  – High volume of foreclosures following “dire market collapse”.  Foreclosure discount rate of 26%. Investors “looking to ride a potential market rebound.”
  4. Atlanta – High inventory of foreclosures—48,500 filings, 37% lower than previous year. Buyers captured property discounts of nearly 50% during 2011. Non-judicial foreclosure timeline: 142 days. Unemployment at 9.2% in November.
  5. San Francisco – Bay Area buyers enjoyed 51% discount on third quarter REO sales. Relatively low unemployment rate of 8.7% compared more favorably than Los Angeles options.

Bottom Distressed Property Markets

  1. San Joaquin Valley, CA – (Bakersfield, Fresno, Modesto, and Stockton)—High unemployment 13.4 % (Bakersfield)-15.7% (Fresno). Low avg. foreclosure discount and low “year-over-year change in distressed filings.”  Low foreclosure inventory potential at 8,000 filings compared to 48,500 for Atlanta.
  2. Las Vegas  – High unemployment of 12.5% hampers re-emerging   economy. Market gains contribute to the low 20% average REO discount compared to private home sales. Foreclosure timeline of 390 days slows availability of inventory.
  3. Tampa  – Judicial foreclosure timeline: 806 days.  Foreclosure discount of just 25% is not as enticing to investors as other markets.  Unemployment rate: 10.3%.
  4. New York City – Foreclosure timeline averaged a whooping 1,019 days (nearly 3 years) in the fourth quarter of 2011, possibly nation’s longest.
  5. San Antonio – Ranks high in “best-place-to-live” surveys. Housing prices are appreciating rather than depreciating. City is not as attractive to investors because of low number of foreclosure filings – 5,503 versus 48,500 in Atlanta for example. Appreciating property values deter investors seeking steep discounts.

Markets change constantly. As always independent research with the help of a real estate professional is recommended.

For additional information, please join us at FirstPrestonHT.com or on our Facebook and Twitter pages.

Source: Housingwire Magazine. The 2012 Investments Issue.  Article: Distressed Opportunities, Larger Players Prep to Enter the Market.

 

14March

Housing Affordability at All Time High…Again!

Housing affordabilityIn January the National Association of Realtors (NAR), Housing Affordability Index soared to 206.1. “This is the first time the housing affordability index has broken the two hundred mark, meaning the typical family has roughly double the income needed to purchase a median-priced home,” stated NAR President Moe Veissi.

NAR announced that the Housing Affordability Index has hit the highest level in recorded history.  The recordkeeping for the index began in 1970. From a historical perspective, in 1970 the average price of a gallon of gas was 36 cents; median price of a new home was $26,600; and the average price of a loaf of bread was 36 cents.

The index is designed so that a score of 100 indicates that a median-income family could qualify for a median priced existing single family home. (Index assumes 20 percent down payment with 25 percent of gross income allocated to mortgage principal and interest) “For buyers who can qualify for a mortgage, now is a very good time to become a homeowner,” declared Veissi.

The NAR President projected, “If access to credit improves, we could see a much more meaningful increase in home sales and broader stabilization in home prices with modest gains in areas with stronger job growth.”

Housing analysts forecast little change in mortgage interest rates and housing prices during the remainder of 2012; therefore affordability is expected to remain strong through year’s end.

For additional information, please join us at FirstPrestonHT.com or on our Facebook and Twitter pages.

Source: National Association of Realtors, REALTOR.org, Article: Housing Affordability Index Hits Record High. Published March 6, 2012

6March

Top 10 Foreclosure Rate States

Top 10 Foreclosure Rate StatesChris Persaud of Bankrate.com recently published data from a RealtyTrac study identifying the top 10 foreclosure states for December, 2011. The rankings were based upon the number of foreclosure filings recorded per housing unit by state.

According to RealtyTrac, on a national basis there were “9 percent” fewer foreclosure filings between November and December of 2011. It should also be noted there are regions in each of the states which are performing much better than the state-wide averages indicate.

Check out the list below. Compare these foreclosure rates to the national average, which according to RealtyTrac, is 1 in every 634” housing units. Review the article for more information on foreclosure sales prices compared to the national average for residential sales prices.

Top 10 Foreclosure Rate States:

  1. Nevada: 1 in every 177
  2. California: 1 in every 254
  3. Michigan: 1 in every 346
  4. Arizona: 1 in every 357
  5. Florida: 1 in 360
  6. Georgia: 1 in 381
  7. Illinois: 1 in 419
  8. Delaware: 1 in 548
  9. Utah: 1 in 548
  10. Ohio: 1 in 583

For additional information, please join us at FirstPrestonHT.com or on our Facebook and Twitter pages.

1March

Changing Times Demand Sharper Tools

BidSelectIn 2001, 48 percent of buyers learned about the home they chose to purchase through a real estate agent, while only eight percent found their home on the Internet.

In 2011, the Internet surpassed real estate agents as the primary source where buyers find the home they ultimately purchase according to data from the National Association of Realtors™ 2011 Profile of Home Buyers and Sellers.

Today’s homebuyers follow a self-directed path during initial stages of their home search. They typically select a real estate professional only after narrowing options to a target list of properties. Convenience and computer savvy consumers continue to drive the increased use of the Internet for real estate sales and marketing. The best marketing tools must factor in new homebuyer behavior patterns.

First Preston HT announced today the unveiling of the new look and enhanced marketing platform, BidSelect® for real estate agents to use in buying, selling and leasing properties. Since its inception in 2004, BidSelect has developed a base of 350,000 registered buyers and received over one million offers, resulting in the sale of over 200,000 properties.

Until now BidSelect was limited to owners of large inventories of properties such as financial institutions, government entities and portfolio investors.  For the first time, this powerful marketing and offer management platform is now available to individual real estate professionals, offering two levels of benefits as described below.

BidSelect® Benefits

  • Free Benefits: Registration is free to Agents. All homebuyer tools are also free.  Agents may present properties on BidSelect in five channels:  Resale, Short Sale, Foreclosure, Rental and New Construction.
  • Expanded Benefits: For a minimal fee of $99/year, agents receive expanded benefits to boost their current marketing strategy including:
  1. Personalized Listings
  2. Promotion to National Network of Registered Buyers
  3. Lead Generation Tools
  4. Buyer Referrals
  5. Priority Placement of Listings
  6. Featured Property Placements
  7. Offer Management Options

More Details

For more full details visit www.Bidselect.com or contact us at sales@BidSelect.com.

Use BidSelect to Increase Your Sales

BidSelect provides homebuyers the convenience, information and independence they prefer in the initial phases of the home search. With over 20 million page views in the past 12 months alone, listing your properties on BidSelect will drive market awareness.  If you choose the expanded benefits, offers may be submitted, negotiated and managed online anytime.

29February

Short Sales Rise Dramatically for Orlando Realtors

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Short Sales in OrlandoThe Orlando, FL, market is seeing a remarkable spike in short sales, an increase in overall median sales price for existing homes and increases in median sales prices for foreclosed properties.  Carrie Bay documented the developments in a January 17  DSNews.com article.

The Orlando Regional Realtor Association (ORRA) reported that in November 2011, short sales jumped 39.38 percent versus prior year sales.  Surprisingly, the accompanying median sales prices jumped by 7.07 percent; rising from $99,000 to $106,000.  Mike McGraw, ORRA chairman, stated “73 percent of homes under contract and pending closing are short sales.”

The news for non-distressed sales was mixed. Since January, the overall median price increased by 21.18 percent; however, in November non-distressed home sellers experienced a median price decrease of 7.5 percent as compared to November of the prior year.  Non-distressed sales made up 40 percent of transactions for the month.

Overall housing inventory is down by a third when compared to November 2010. At this pace, ORRA indicates they have only a 5.20-month supply of homes in Orlando’s entire sales inventory.

The performance stats for the Orlando market are encouraging, but not without challenges.

For additional information, please join us at FirstPrestonHT.com or on our Facebook and Twitter pages.