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7February

Pending Home Sales Index | Reduced Inventory = Less Signings | January 2013

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Although the January 2013 Pending Home Sales Index report indicates a slight reduction in pending home sales for the month of December 2012, figures have nevertheless remained higher than last year’s numbers.

Pending-Home-Sales-Index

Pending Home Sales Index

Reduced Inventory = Less Signings

According to Lawrence Yun, an economist for the National Association of Realtors (NAR), reduced inventory is to blame for the small decline in contract signings in December. For instance, homes in the less-than-$100,000 price range are becoming hard to find in most areas of the country, and although the inventory is expected to rise slightly in spring, the market sentiment appears to be turning to the side of sellers.

Still, as the inventory shrinks slightly, demand for homes has remained high, and it’s because of this that Yun estimates a 9 percent increase in 2013 home sales to match 2012’s 9 percent increase.

Other PHSI Figures

Here are some other important figures shared in the PHSI according to the NAR report:

  • Pending home sales index percentage in the Northeast fell by 5.4 percent in December 2012, but remains higher than December 2011.
  • Index rose in the Midwest by 0.9 percent in December, 14.4 percent above last year.
  • Pending home sales index numbers in the South declined 4.5 percent to 111.5 in December, yet are over 10 percent higher than a year ago.
  • The index fell 8.2 percent in the West for December and is the only one showing a decline from last year as well.

The Pending Home Sales Index takes a sample of about 20 percent of existing home sales across the country to measure the state of the market each month. Pending home sales are sales in which contracts have been signed but a closing has not yet occurred. The monthly report is one of the important indicators of how the market is faring in the U.S.

For more information about First Preston HT, visit our website at firstprestonht.com. You can also join our community on Facebook and Twitter.

December 2013 Pending Home Sales (Will Link When Published)

7February

Exiting the Nest: The Next Housing Movement

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College graduates who bounced from college graduation to their childhood bedrooms are now on the move. Many rebounded and are now part of a growing 2013 market trend.

Demographic Size

Two million more 18–34-year-olds resided with parents last year than in the prior four years, reports Timothy Dunne, an economist with the Federal Reserve Bank of Cleveland.  They are now emerging as the next wave of upwardly and outwardly mobile employees, renters and buyers.

Will Move for Employment 

Housing-Movement

Adults 25-29 are spreading their wings and migrating to greener employment pastures as the economy recovers.

According to Brookings Institution demographer William Frey, in 2012, “the increase in the rate of people 25-to-29 moving was the highest in 13 years.”  The economic downturn reduced cross-state migration rates to post-World War II levels.  The tide has turned. Adults 25-29 are spreading their wings and migrating to greener employment pastures as the economy recovers.

In 2012, for adults aged 25-34 the jobless rate fell from 9 percent to 7.9 percent. Many pursued career opportunities in distant cities and are in the market for housing.

Renters or Buyers?

Most relocate to urban centers and are initially drawn to the flexibility of renting. Escalating rents, the weak supply of rental options and low interest rates, make buying a competitive option.

Conclusion

Builders, real estate professionals, asset management companies, and rental property investors who provide viable housing options and value-added resources to this emerging group should experience growth in 2013 and beyond.

Sources:

  1. Los Angeles Times. Young Adults Are Leaving the Nest. Don Lee. December 9, 2012.
  2. Timothy Dunne, Economist with the Federal Reserve Bank of Cleveland.
  3. Brookings Institution demographer, William Frey.
6February

Rejects To Riches| Rethinking Returns

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Retail sales in the 2012 holiday season hit $579 billion, according to the National Retail Federation. Americans affirmed the three-step tradition.  Shop till you drop. Give until it hurts.  And return, return, return. Between online and retail purchases, holiday shoppers returned $63 billion in merchandise.¹

Rethinking-Returns

Returns to Riches

Did you ever wonder where all of that returned merchandise goes to live after the holidays?  The returns from “7 of the top 10 retailers and hundreds of manufacturers”² head to an online bulk auction marketplace called Liquidation.com. Huge warehouses in Las Vegas, NV, Plainfield, IN, Cranbury, NJ, and Garland, TX⁴ divide the bounty.

Workers inspect, test and sanitize items, establish lots, and set pricing discounts up to 40 percent² prior to online auctions. Major categories of merchandise include electronics such as computers, iPads, HDTVs, home appliances, and clothing among others. While 98 percent of buyers purchase bulk lots for resell, secondary site Secondipity.com² caters to individual consumer purchases with up to 80 percent discounts.³ Brands like Prada and Michael Kors are among the bargains.

This is yet another example of how a creative solution such as an online marketplace can provide transparency and national visibility to formerly underground economies, transforming and accelerating an industry segment. BidSelect.com, one of the first online real estate marketplaces to facilitate online offer management, elevated online real estate transactions in much the same way almost 10 years ago.

In 2013 be watchful for opportunities to rethink challenges with an eye toward outside-the-box solutions.

Feel free to share this article with innovators or savvy shoppers who appreciate value.

To conduct property searches in cities throughout the nation visit FirstPrestonHT.com or BidSelect.com

For real estate portfolio management and real estate technology solutions, visit FirstPrestonHT.com.

Sources:

  1. National Retail Federation.  Holiday Retail Sales Up 3.0 Percent to $579.8 Billion.
  2. ABC Nightline. Many Happy Returns. Jan 13, 2012
  3. ABC Nightline.  Easy Money: Fast Cash from Unwanted Presents—Jan. 8, 2013.
  4. ABC WFAA. Where Returned Gifts Go to Find a New Home. January 14, 2013
  5. www.Liquidation.com  . About Us
  6. www.Secondipity.com
  7. BidSelect.com. Nationwide Online Real Estate Market Place.
4February

HOW TO SURVIVE AND THRIVE IN THE DIGITAL AGE

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Newsweek Magazine sprang onto the scene in 1933. Cover price: one dime or $4 for an annual subscription.  On December 31, 2012, after 80 years, the former industry leader printed its last issue. This is a “…move that makes it the most widely-read magazine yet to give up on the print media,” according to Wall Street Journal (WSJ) writers, Daniel and Hagey.

Newsweeks Final Print Issue

Newsweeks Final Print Issue

What went wrong? Are there lessons for business owners?

What Went Wrong?

According to Ben Thompson at the BBC, key challenges included:

  1. Printing/Production Costs: It cost $40M per year to print the magazine.
  2. Industry Under Pressure: Online news, social media scoops, and 24-hour TV news rendered printed monthly news magazines “old-news” upon arrival.
  3. Audience Attrition:  Since 2005, circulation for Newsweek reportedly dropped by half to 1.5 million, according to WSJ sources. Subscribers and advertisers dwindled. (BBC Video Newsweek Publishes Last Edition On Paper. )

The Way Forward

Newsweek Magazine merged with The Daily Beast and became a digital magazine. It now has 15 million visitors per month—up 70 percent versus the prior year.

Beginning in 2013, the digital-only version, Newsweek Global, is available by subscription for $4.99/single copy or $24.99 annually. If successful, this may become the new business model for the industry.

Lessons for Business Owners

  1. Take notice of detrimental business profitably trends early. Examine and embrace alternatives before an outdated business model eats your business.
  2. Consider advantageous alliances.
  3. Strategically court a new target audience to augment your core following.
  4. Face reality head-on. Make strategic shifts that play to your strengths. Remember the John Wooden quote, “Change is not fatal, but failure to change might be.”
For more information about First Preston HT visit our website. You can also join our community on Facebook and Twitter. 

Sources:

  1. BBC News. Ben Thompson. Newsweek Publishes Last Edition On Paper. December 31, 2012.
  2. Wall Street Journal. Robert Daniel and Keach Hagey. Turning a Page: Newsweek Ends Print Run.
  3. The Daily Beast (Video). www.thedailybeast.com/newsweek/…/a-new-chapter.ht

 

 

23January

National Real Estate Trainer, Margo McKay-Broughton to Present at REOCON Summit & Expo

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One of the first major real estate conferences of the year is just around the corner. This year’s REOCON  Summit & Expo will take place January 26-28  at the Hyatt Regency Hotel in Dallas.

REOCON Summit and Expo

REOCON Summit and Expo in Dallas Texas

It’s an opportunity to make strategic connections and gain keen insights that may help to chart a productive course in 2013. Top REO trainers from around the nation will share latest news and process points to ensure smooth sailing.

National real estate trainer Margo McKay-Broughton is Vice President of Program Development, Director of Training, and Director of Quality Control for the First Preston HT family of companies. Her HUD Training course will be offered on Saturday, January 26, from 10:30 a.m. – noon.  In this training session, you will learn:

  1. The latest news about HUD.
  2. An overview of HUD contractors (Who does what?).
  3. Prohibited Purchasers of HUD Homes.
  4. HUD Listing Agents – How they get selected.
  5. Mortgagee Letters – Information that will help all parties.
  6. Offer Results on HUD Homes – Where you can find it.
  7. Listing Timelines for HUD – Who can buy/when.

Margo has over 10 years of training experience, and is certified to teach real estate in 22 states.

If you list or sell HUD properties—or would like to do so in the future—mark your calendar and set a reminder for the Margo McKay-Broughton HUD Training Session.

Conference registration is required for attendance. For registration details, visit the conference website.

For information about First Preston HT and HomeTelos visit our respective websites.

 

18December

ENCOURAGE NEWTOWN, CT RESIDENTS

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Encourage-Newton-CT-Residents“Kind Words Can Be Short and Easy to Speak, But Their Echoes Are Truly Endless.”—Mother Teresa

The United States Postal Service (USPS) has established a dedicated P.O. Box for those who want to share a note of encouragement to people in Newtown, CT.

After a major tragedy we wonder if there is anything we can do to really help, and often feel powerless to connect in a meaningful way. If you want to share a message of hope and support with residents Newtown, CT, the postal service is offering an option.

They have made special arrangements to receive and distribute cards and letters bearing condolences and words of encouragement at the following address to first responders and families of shooting victims. Please share this blog with friends, relatives and associates. The goal is to blanket residents of Newtown with words of comfort and support.

The address is: P.O. Box 3700, Newtown, CT 06470.

Feel free to send cards, notes and letters.  The USPS does not require an addressee name for this special P.O. Box.

HOW WILL THEY MANAGE IT?

According to a report in the Business News Daily, the postal service is dispatching additional workers to assist with the processing during what is traditionally their busiest season of the year.

Local community group volunteers are partnering with the USPS to ensure distribution. They will assist in monitoring content to ensure that only appropriate material is shared with recipients.

WORTH THE EFFORT

As a nation we send fewer letters via the US Postal Service, preferring the immediacy of email or texting. This opportunity invites us to slow down a moment and invest in helping a grieving community to heal. Let’s generate an endless echo of comfort.

16November

OPPORTUNITY AVAILABLE

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Help us locate the ideal candidate for a hot new career opportunity.  The right candidate is an experienced   real estate transaction “closer” in the Wilmington, Delaware area. Does this describe you or a friend? Help  get the word out among friends and business associates who are qualified and interested.

Qualified applicants are invited to click on the link at the end of the “required skills and experience” list below to visit our website and apply.

 

POSITION OVERVIEW

Closing Specialist is responsible for coordinating the home sale closing process between the prospective buyer’s agent and the title company/fee attorney.

RESPONSIBILITIES

  • Ensure timely receipt and return of closing packages
  • Review all pre-closing documents to ensure compliance with the sales contract and other established guidelines
  • Review and resolve title issues
  • Process sales contract extensions and revisions
  • Communicate with the title company or fee attorney, realtor, or lender to expedite closings
  • Review and reconcile final closing documents
  • Other duties as assigned

REQUIRED SKILLS AND EXPERIENCE

  • 2-5 years of experience with a title company, attorney or lender in closing residential sales transactions
  • Experienced in title document review and curative actions
  • Intermediate level skills in MS Office Products
  • Ability to meet tight deadlines and thrive in a fast paced environment
  • Strong written and verbal communication skills
  • Excellent analytical skills
  • Detailed oriented
  • Ability to work a flexible schedule when required

Click here to apply.

8November

What size house do you want? It might depend on where you’re from.

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The United States is known for its tendency to supersize things – a few years ago, McMansions were in high demand. Recently, however, there has been a shift in focus, perhaps because of the changes in the economy.  Today the average American is looking for a 1,854 square foot home. So what will become of all those big houses? Don’t worry; much of the rest of the world is interested.

The Dutch are most likely to buy large properties in the United States. The average buyer from the Netherlands looking for an American home will look at houses around 2,400 square feet. Ireland and the United Kingdom are close behind, looking for American homes in the range of 2,300 square foot. These house hunters are followed by fellow Europeans in Sweden, Norway, Belgium, Germany and Poland, as well as those down under in Australia, with all these countries averaging between 2,100 to 2,287 square feet. Buyers in the United Arab Emirates want houses in the 2,000s, as do those in Singapore, Spain, Japan, Switzerland, France, Afghanistan, and South Korea. China, Hong Kong and Brazil are next, and the Philippines are at the bottom of those who buy big, with their median 1,876 slightly above what American’s are seeking.

large properties in the United States

These numbers come from research conducted by a major real estate syndicator. The study indicated that although other countries make fun of America’s love of all things large; they’re very likely to look for the biggest homes available when looking for a house in America.

Of course, not everyone wants a huge house. Argentineans typically look for smaller homes, looking primarily in Miami for houses with a median square footage of around 1,300 square feet. Israeli’s, also, look for smaller places, with a preference for purchasing properties in New York. The fact that Israeli and Argentine buyers are interested in condo-heavy geographic regions may be part of the reason they seek smaller units.

It’s interesting to watch real estate trends and how American’s preferences measure against the preferences of the rest of the world.  If you’re interested in working with real estate professionals who have a keen understanding of the real estate market, consider First Preston HT. Whether you’re buying or selling a home, using real estate to diversify your investment portfolio, or in search of a better way to manage rental properties, First Preston HT has the knowledge and expertise to meet your needs, backed by visionary and innovative technology. Visit the website for more information, or connect with the online community on Facebook and Twitter.

Sources
AGBeat  http://agbeat.com/real-estate-news-events/foreign-house-hunters-are-searching-for-mcmansions/

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18October

Teen-Aged Real Estate Mogul/Landlord

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In early March of this year, Willow Tufano, age 14, made national news by purchasing a house and becoming a landlord.  The story went around the world and Willow landed an interview on the Ellen DeGeneres Show.

Real-Estate-Teen-Willow-Tufano

Real Estate Teen Willow Tufano

People assumed that it was a just a fluke until October 12th when National Public Radio (NPR) reported that Willow, now 15, has scored a second rental property.

After refurbishing and  leasing out her  first property, the tenant vanished late one night without bothering to pay the rent. Therefore, Willow is now a veteran of the harsh realities of property management.

 She is also now a student of the American media machine—a teen “real estate mogul “, “minor celebrity”; shopping for a reality show deal. She was sought out by Good Morning America, Anderson Cooper and “some show from Korea”, according to Chana Joffe-Walt of NPR.

How Did She Do It?

Willow is home schooled online. This allows her the freedom to experience real life business principles during the day and finish her online lessons at night.

She accumulated a small investment fund by selling “stuff” on Craigslist. After saving $6000, Willow’s Mom, a REALTOR, mentioned a $12,000 house formerly valued at $100,000. 00 (prior to the crash of the market). Willow asked her Mom, to pitch-in the other half so that she could purchase the house. (Willow plans to buy- out her Mom’s interest when she becomes 18.) The rest as they say is history.

Her Portfolio Management Strategy

Willow refurbishes the properties and leases them out to tenants. Her buy, hold and rent strategy is also popular among major institutional investors.

Click here to listen to the full story, or watch the YouTube video of Willow’s Ellen DeGeneres interview below.

Source: 

  1. NPR. Planet Money. This 14-Year-Old Girl Just Bought A House in Florida. Chana Joffe-Walt. March 9, 2012
  2. NPR. Planet Money. Remember The 14-Year-Old Who Bought A House? She Just Bought Another One. Chana Joffe-Walt. October 12, 2012.
  3. YouTube. The Incredible 14-Year-Old Who Bought a House. Ellen TV.com.

To search for available real estate or property management resources nationwide, visit FirstPrestonHT.com. You can also connect with us on Facebook and Twitter.

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16October

October List of Improving Markets Grows to 103

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The number of “improving markets” spread throughout 33 states and grew to 103 from 99 the prior month. This month’s list captured a colorful mix of small and large metro areas according to a recent RisMedia report.

New, Returning and Deleted Markets
Eleven new markets broke into the line-up, while 92 maintained their positions.  Seven markets retreated from their former rankings and were deleted from the list.

Improving-Real-Estate-Markets

Improving Real Estate Markets

Methodology
Each month the Home Builders/First American Improving Markets Index (IMI) is compiled and released. The IMI measures:

  • Employment growth- (Based on the Bureau of Labor Statistics)
  • House Price appreciation – (Freddie Mac Stats)
  • Growth in Single-Family Housing Permits — (U.S. Census Bureau).

Metro areas must demonstrate improvement in all three measures for six months or more in order to make the cut for the improving markets roster. National Association of Home Builders (NAHB) compiles the “latest available data” to complete the monthly list of improving markets. Here’s an abbreviated list of this month’s improving markets by category.

New This Month                                                          

  1. Santa Cruz, CA
  2. Albany, GA
  3. Savannah, GA
  4. Honolulu, HI
  5. Pocatello, ID
  6. Lake Charles, LA
  7. Raleigh, NC
  8. Cincinnati, OH
  9. Oklahoma City, OK
  10. State College, PA
  11.  Abilene, TX

Top 10 Listed

  1. Fayetteville, AR
  2. Jonesboro, AR
  3. Little Rock, AR
  4. Phoenix, AZ
  5. Prescott, AZ
  6. Tucson, AZ
  7. Yuma, AZ
  8. Hanford, CA
  9. Sacramento, CA
  10. Santa Cruz, CA*

Deleted This Month

  1. Jacksonville, FL
  2. Lakeland, FL
  3. Bloomington, IN
  4. Lawton, OK
  5. Bend, OR
  6. Texarkana, TX
  7. Charlottesville, VA

Outlook
Kurt Pfotenhauer, Vice Chairman at First American Title Insurance Company concluded, “For potential buyers across the country, it is becoming increasingly apparent that now is a good time to explore a new-home purchase.”

To see the complete list of 103 improving markets visit the “List of Markets Included in the NAHB/First American Improving Markets Index (IMI)” section of the landing page.

To search for real estate across the country visit First Preston HT.com or BidSelect.com. You can also join us on Facebook and follow us on Twitter.

Sources:

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