Real Estate

15August

Mortgage Rates and the Purchasing Power of a Dollar

Recent testimony by Fed Chairman, Ben Bernanke, has indicated a desire to begin tapering quantitative easing (QE) over the next few months but has stressed that interest rates will remain unchanged until certain economic indicators reflect an improving job market.  Interest rates have been held at record lows while the economy tries to get moving at full speed again.  Bernanke has stressed that he will continue to keep interest rates close to zero percent at least until 2015.

But mortgage rates have already started to climb as the housing sector grows legs.  The 30-year fixed-rate mortgage for this week is 4.56% and the 15-year fixed-rate mortgage is 3.62%.  While historically this is still low, these rates have increased by about 1% over the last 3 months.  Mortgage rates haven’t moved this much at such a quick pace since 2009.  So what does this mean if you are looking to purchase a home in the near future and why should you care about mortgage rates and monetary policy decisions by the Fed?

When mortgage rates rise, the purchasing power of the dollar diminishes in regards to home buying.  The degree to which it diminishes depends on how much mortgage rates fluctuate (inflation has a strong effect on purchasing power too, but that’s another conversation).  A home buyer is more concerned with the monthly cost and affordability of the house rather than just the sticker price of the house.  This is where mortgage rates can dictate how much home is actually affordable.

puchasing-power-mortgage-rates

As Mortgage Rates Rise, Purchasing Power Falls

A 1% increase in mortgage rates will reduce purchasing power by 10.75%.  Likewise, if rates decrease by 1%, a homebuyer will gain a 10.75% increase in your buying power.  What does this look like?  A homebuyer originally decided they could afford to purchase a $600,000 house when rates were at 4.5% (assuming a 30 year loan).  If rates jumped to 5.5% they would now only be able to only afford a $535,000 house.

Even though mortgage rates are starting to creep up, they are still historically at all-time lows which translate into historically high purchasing power.  Comparing rates from early 2011 to late 2012, purchasing power grew more than 22% and has continued to grow as mortgage rates have continued to fall.

The longevity of this current mortgage rate environment will be affected in part by Bernanke’s actions to begin tapering QE and raising the Federal Funds Rate, which could lead to further gains in mortgage rates.  It will be interesting to see if the increase in mortgage rates recently have a negative effect on July’s Pending Home Sales from June’s Pending Home Sales number.

For information on effective ways to manage institutional and individual portfolios nationwide, or to shop for real estate visit First Preston HT.  Like us on Facebook. Follow us on Twitter.

Sources:

http://www.bankrate.com/finance/mortgages/mortgage-analysis.aspx  http://themortgagereports.com/6354/mortgage-rates-purchasing-power

 

8April

AMERICA’S 25 TOP PERFORMING CITIES

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Are large cities in your region among the top performing cities or among the biggest decliners? As the economy recovers, why have some cities led the way, while others struggle? What are the common denominators for biggest gainers versus biggest decliners? What impact will top performing cities have on local real estate markets around the country?top-performing-cities

The Milken Institute, a nonprofit, nonpartisan think tank and economic analyst, measures the economic health of large and small metros each year. The result is a ranking by city of 200 major metros and 179 small cities in the annual Best-Performing Cities Report.

FINDINGS

Large metros with healthy job growth dominated the rankings.  This year’s top spots went to cities blessed with technology centers, financial and insurance services, vast natural resources, and healthy concentrations of industry– especially manufacturing.  Job growth promoted economic stability propelling housing demand and recovery for top cities.

TOP 25 BEST-PERFORMING LARGE METRO AREAS

According to Milken Institute findings, the 2012 top 25 performing large cities/ metro areas are:

Top-Performing-Cities

Salt Lake City in Top Performing Cities

  1. San Jose-Sunnyvale-Santa Clara, CA
  2. Austin-Round Rock-San Marcos, TX
  3. Raleigh-Cary, NC
  4. Houston-Sugar Land-Baytown, TX
  5. Washington-Arlington-Alexandria, DC-VA, MD, WV
  6. Salt Lake City, UT
  7. Provo-Orem, UT
  8. Cambridge-Newton-Framingham, MA
  9. Charleston-North Charleston-Summerville, SC
  10. Fort Worth-Arlington, TX
  11. New York-White Plains-Wayne, NY-NJ

    Top-Performing-Cities

    Boulder Colorado in Top Performing Cities

  12. Fort Collins-Loveland, CO
  13. Seattle-Bellevue-Everett, WA
  14. Dallas-Plano-Irving, TX
  15. Boulder, CO
  16. Kennewick-Pasco-Richland, WA
  17. Peabody, MA
  18. El Paso, TX
  19. Bakersfield-Delano, CA
  20. Lubbock, TX
  21. Durham-Chapel Hill, NC
  22. San Antonio-New Braunfels, TX
  23. Portland-Vancouver-Hillsboro, OR-WA
  24. Lafayette, LA
  25. Knoxville, TN

To see how all 200 metros ranked, or to download the full 200 large cities ranking report, visit the Milken Institute.org.

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

Source: Milken Institute. Best-Performing Cities 2012. Ross C. DeVol, Armen Bedroussian, Yu Liu. January 2013.

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.

 

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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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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3October

Opportunity Available

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We need your help in locating the right candidate for an exciting new career opportunity.  Please spread the word among friends or business associates who might be qualified and interested.  The position description is outlined below.  Qualified applicants are invited to click on the link at the end of the qualifications list to visit our website and apply.

Career Opportunity

Position Description:

HomeTelos is seeking a JAVA Developer with confidence in developing end to end enterprise level web based solutions that directly impact business processes and functionality within the HomeTelos suite of applications. We require a highly motivated individual interested in applying their skills to develop solutions to exceed expectations.

Core Competencies and Responsibilities:

• Under general direction, analyze, design, develop, unit test and debug new software solutions and enhancements to existing Java software
• Strong understanding of the software development lifecycle processes, version control, and project management to effectively meet client needs
• Strong ability to handle multiple projects simultaneously with limited supervision
• Accurately employ development tools and adheres to coding standards defined by technical management
• Demonstrate strong knowledge of object and component methodology and technology
• Manage personal work plan to meet project deadlines
• Display a positive attitude with ability to accept and apply feedback to improve performance
• Excellent interpersonal skills including verbal and written communication, teamwork and issue resolution
• Value internal and external clients and responds to their needs as they arise
• Understand the professional development process and becomes actively involved by setting challenging goals and meeting them through continuous learning
• Work with both the business and testing teams to ensure that the software developed exceed client expectations

Qualifications:
• 2 years of software design and development experience
• 1 years of Database experience includes relational database concepts, knowledge of physical design and writing efficient queries/logic using SQL Server
• 1 years of solid JAVA/J2EE experience
• Strong object oriented design skills
• Knowledge of EJB, JMS, JUnit and DB Tuning techniques is preferred
• Strong background in HTML, JavaScript, Servlets, JSP, XML, XSL, Ajax, Eclipse and UI skills
• Strong problem solving and troubleshooting skills and capacity to think creatively under pressure
• Bachelor’s degree in Computer Science or significant related job experience
• Must pass credit and criminal background checks
• Must be able to work in the United States without requiring employer sponsorship.  Click here to apply.

28September

Technology for Real Estate: Revolutionary iPad Apps – Final Installment in 3 Part Series

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Part 1
Part 2

Mobile technology for real estate professionals has
been revolutionized by the tablet computer. The right
app can inject a marketing ‘wow factor’ for skillful
users.

Technology for Real Estate

Technology for Real Estate

This is the third and final installment in a series of blogs for iPad owners based
upon content from an Inman News webinar entitled, “So You Bought an iPad. Now
What?” Inman Chief Evangelist, Chris Smith, showcased top application technology
for real estate professionals covering several functional categories. Which apps
deliver? Check out these top contenders for photo editing and sharing, back-office
productivity, and “experience” apps that are designed to impress.

PHOTO EDITING AND SHARING

1. Instapad – Edit photos and even make notes on them, then seamlessly
share them via social networks.
2. Snapseed – 2011 Best Paid App of the year (for iPad). This photo editing
app “Lets users pinch, mold, and shape effects to make jaw-dropping
beautiful photos.”¹
3. IPad IMovie – Video editing.

BACK OFFICE/PRODUCTIVITY

1. CloudOn – Helps to make Word, Excel, PowerPoint, and other programs
work on the iPad.
2. LogMeIn – If your MLS will not allow you to login to the MLS on your
iPad, login on your laptop and LogMeIn will enable you to view laptop MLS
info on your iPad screen. Users must remain logged in on the laptop to
display MLS data via their iPad.
3. Evernote – Organize, and record notes and files for easy access.
4. GotoMeeting IPad App – Attend GoToMeeting webinars via the iPad.
5. Dotloop.com – Electronic signature tool.

EXPERIENCE APPS – MEANT to IMPRESS

Technology for Real Estate

Technology for Real Estate

1. Open Home Pro – Collects attendee information, sends an email thanking
guests for attending, notifies prospects of status changes. Open rate on
status change email is 67 percent. Agents report 98 percent accurate email
addresses on sign-in sheets.
2. Roambi – Facilitates data visualization and interaction for market reports.
3. TourWrist – Discover and share 360-degree panoramic photos on demand.
4. Realtor.com – Circle the area where the prospect lives and display market
activity data for property transactions within the circle. (Free branded version
for agents).

For information on effective ways to manage institutional or individual portfolios
nationwide, visit www.FirstPrestonHT.com
You can also join us on Facebook and follow us on Twitter.

Source: InmanNews. So You Bought and iPad. What Next? [Webinar]. Chris Smith, Chief Evangelist. August 10, 2012

  1. Apple Revealed Its Best Apps For The Year 2011. Technorati. Dan Reyes. December 20. 2011.
  2. For information about real estate portfolio management for institutional portfolios visit www.FirstPrestonHT.com
  3. For information about marketing and online offer management for broker/agent portfolios visit www.BidSelect.com

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25September

Technology for Real Estate: Top Tablet Tools – Part 2 in 3 Part Series

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Part 1
Part 3

This is the second installment in a three-part series recapped from an InmanNews webinar entitled So You Bought an iPad. Now What? The content simplifies the hottest trends in technology for real estate.

technology for real estate

Technology for Real Estate

The Future Is Mobile—Real estate prospecting and marketing is increasingly mobile. These stats document the escalating trend:

  • 91% Of all U.S. citizens have  a mobile device within reach 24/7*
  • 70% of all mobile searches result in action within one hour.*
  • 2014: The year mobile devices will overtake the use of desktops. **

LISTING PRESENTATION APPS– For dynamic, “jaw dropping” listing presentations, the following three got rave reviews from Inman.

  1. Keynote – (If you have Mac.)
  2. Slide Rocket (PC users) – No issues with formatting. Great for PowerPoint users.
  3. Prezi — Cutting-edge, cinematic, jaw-dropping presentations, but a bit more complicated. Build presentations on your PC and present/display on your iPad.

SOCIAL APPS – If you’re ready to take your social marketing efforts to the tablet platform, these apps deserve a look:

  1. LinkedIn — Easy to navigate, great for sharing articles, find birthdays, see who has been looking at your profile, who changed jobs, etc.
  2. Google+ – Discover amazing content. Find content that has proven to be popular and useful.
  3. HootSuite –“Best way to run Twitter from an IPad.”
  4. Spotify – Listen to music as it is shared on Twitter without additional keystrokes.
  5. GetGlue – Check in to TV shows and sporting events you are watching. Your participation is automatically shared on social sites.

CONTENT APPS – Looking for impressive content to curate? These apps are big on substance and eye-appeal.

  1. Fancy – Great images and content to curate on Facebook.
  2. Houzz – Beautiful pictures of interior décor and great content.
  3. Pinterest – Collect and share images. Use iPhone app on your iPad.
  4. Skitch – Captures screen images/photos etc. that can include notations on the screen images.
  5. Zite – “The Pandora of reading apps.” Useful for reading and locating content to blog about or curate.
  6. Google Currents – Groups favorite blogs and/or news sites in one user interface.
  7. Huffington Post – Content rich. Cutting-edge news.
  8. TED App – Inspirational big ideas.

For information on effective ways to manage institutional or individual portfolios nationwide, or to shop for real estate visit First Preston HT.

You can also join us on Facebook or follow us on Twitter.

*Source: mymobilpeek.com/mobile-statistics/ (From: Mobile Marketer)

**Source: TechJournal.org

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13September

Technology for Real Estate: 4 Apps to Impress – Part 1 in 3 Part Series

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Technology for real estate professionals is getting a boost from must-have iPad apps. Tablets have revolutionized the marketing and communication power of users. According to Inman News, technology for real estate is now about “creating remarkable experiences through technology for your current and past clients. It’s about being able to wow someone at Starbucks when` they ask you, “How’s the market?”

Technology for Real Estate

Technology for Real Estate

If you have invested in tablet technology and are asking the question, “Now what?”—You are not alone. Inman Chief Evangelist, Chris Smith, recently conducted an hour-long webinar entitled “So You Bought an iPad. Now What?”

Here’s the short version. We have recapped featured iPad apps in a three-part series so that readers can digest the mountain of savvy insights in divided sessions.

3G/4G or WI-FI?

  1. If you have a Wi-Fi only iPad, (Internet access via local area networks), you may want to consider the following options for wider Internet access and greater productivity.
  • Subscribe to a My-Fi/ mobile Internet access hot-spot, which will allow online access from almost anywhere in the United States.
  • Inquire with your wireless carrier about subscribing to tethering service, which allows the iPad to share the Internet connection of your mobile phone.

 APPLE TV – A BUSINESS TOOL?

Apple TV (AirPlay capability) allows users to mirror images or presentations, from an iPad or iPhone onto a big screen TV monitor wirelessly. Subscribers make a one-time $99 investment for the device. Presentations go from the small screen to theater-style for maximum impact.

MINIMIZE PUSH NOTIFICATIONS & MAKE AN IMPRESSION

After downloading several apps you may become bombarded with involuntary notifications. To limit unwanted “push” notifications, go into the notifications center of the offending app and turn off non-essential notifications. There is an app that can assist with the process.

  1. AwayFind – Manages “push notifications.” AwayFind acts as a filter for automated notifications.
  2. Pimp Your Screen — Customize your screen with an eye-popping background layout.
  3. Google Chrome iPad App — Allows users to move seamlessly from laptop work sessions to iPad work sessions. Open tabs and browsing history will be visible on both devices. (New App)
  4. How’s the Market? (iPad edition) — Displays market trend and analysis data. Add a bookmark to your iPad screen so that when someone asks, you can show them rather than just talk about them.

Before You Shop

Apps shopping should start with a pen and paper. Write a list of the daily tasks you perform. Search for an app to assist with specifically identified tasks.

Organize Apps by Category

Organize app folders for quick access. Be sure to group apps by category into folders on your screen.  To create a folder, click on an app hold it down until it shakes and then drag it atop a similar app. Label the folder something that is easily identifiable, such as “Listing Presentation apps.”

For information on effective ways to manage institutional or individual portfolios nationwide, or to shop for real estate, visit www.FirstPrestonHT.com. You can also join us on Facebook and follow us on Twitter for industry updates and current news and events.

10May

Property Taxes Too High? How to Protest the Value

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property taxes too high“The right to protest to the Appraisal Review Board (ARB) is the most important right you have as a taxpayer. “  Dallas Central Appraisal District      

If you think the property valuation assessment provided by your local/county appraisal district is too high– you have options– however time is of the essence. The rules and deadlines may be different for different jurisdictions, but the rules are public information so with a little research the required action steps and guidelines can easily be found.

It is often worth the effort as homebuyers who have purchased newly constructed homes are often under-assessed the first year of ownership. Buyers who purchase a home which is below former market values can easily be over-assessed during their first year of ownership.

In many jurisdictions there is an appointed board/panel made up of local residents who assemble to hear and review property valuation protests annually during a designated period. The process is free of charge, and typically yields a decision the same day. A property owner can appeal to the panel alone, or with the support of a designated party such as a local real estate professional. There is a cottage industry of firms which perform this process on behalf of homeowners for a fee—typically a percentage of the savings granted. There are real estate professionals who provide this service free of charge as an added value to clients.

When filing a protest prior preparation and adherence to prescribed timelines are crucial. In Dallas County, TX for example, all written protests must be filed by May 31st. (or the first business day thereafter) Typically protest guidelines are printed on the annual property valuation statement which your appraisal district mails to your home.  In some counties, you can indicate on the form that you want to protest the valuation and mail it back to the appraisal district, thereby filing/initiating a protest. There may also be an online protest program for your appraisal district.

Check with your appraisal authority if you suspect that your home’s valuation assessment is too high. It may require a little homework but it could be well worth your while.

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