17January

Top 5 Cities for Rental Ownership

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Top 5 Cities for Rental OwnershipMarket watchers indicate we are in a historically positive time for owning and leasing rental property. Studies indicate vacancy rates are decreasing and rents are increasing. Many investors have decided the “buy, rent and hold” investment strategy is a winning one for the foreseeable future.

A recent report from Local Market Monitor (Posted in AGBeat) listed Houston as the “most rewarding city for being a landlord.” The rating is based on “home prices, area economy and rents and ranked by job growth.” Below are the four markets rounding out the list of “Top Five Cities for Landlording?”

1. Houston, TX

Projected 3-year rent increase: 18%
Q2 home price: $174,000
Current monthly rent: $818
Annual job growth: 2.5%

2. Grand Rapids, MI

Projected 3-year rent increase: 15%
Q2 home price: $128,000
Current monthly rent: $785
Annual job growth: 2.4%

3. Rochester, NY

Projected 3-year rent increase: 25%
Q2 home price: $148,000
Current monthly rent: $785
Annual job growth: 2.3%

4. Dallas, TX

Projected 3-year rent increase: 16%
Q2 home price: $166,000
Current monthly rent: $877
Annual job growth: 2.2%

5. Tulsa, OK

Projected 3-year rent increase: 19%
Q2 home price: $146,000
Current monthly rent: $671
Annual job growth: 1.8

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

6January

FHA Announces Extension of Anti-Flipping Waiver

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On December 22nd, HUD announced that the Federal Housing Administration’s (FHA) anti-flipping waiver will be extended through the end of the year, 2012.

A December 28th press release stated that the extension permits “buyers to continue to use FHA-insured financing to purchase HUD-owned and bank-owned properties, no matter how long the homeowner has held the title—through December 31, 2012”.

The intent is to accelerate the sale of foreclosed properties. The first waiver, implemented February 1, 2010 has resulted in nearly 42,000 additional insured mortgages on properties which were purchased, often improved or renovated, then re-sold to new owners within a 90 day period.

The waiver extension comes with strict guidelines and conditions designed to prevent predatory practices. Read FHA’s anti-flipping waiver.

The FHA press release emphasized that “the waiver will allow homes to resell as quickly as possible, helping to stabilize real estate prices and revitalize communities experiencing high foreclosure activity.”

21December

“Layaway Angels” Pay Away Layaways: ‘Tis the Season…

Layaway Angels TrendA Secret Santa started a trend that is sweeping the nation. It is believed to have started in Grand Rapids, Mich., when a woman approached a Kmart store and asked to pay off someone else’s layaway. The “Layaway Angel” targeted accounts that were about to go into default, which contain “mostly toys.”   The confused clerk completed the transaction. Someone blogged about it and the idea has caught on and is spreading rapidly.

In Avon, Ohio, a shopper paid off an entire group of layaways totaling $8,800. The anonymous benefactor stated that rather than choose between families, it was easier to take care of the “entire bill.”

In Bridgeville, Penn., an eight year-old sacrificed eight weeks of his allowance, $40, to pay off someone’s layaway. His mom also chipped in. The store has recorded 12 “layaway angels since Saturday.”

In Indianapolis, an anonymous layaway angel paid off over 50 layaways. She then handed out $50 dollar bills. Finally, she went to a checkout lane and paid for an additional $400 of toys for grateful shoppers. Truly a sign of the season. Pass it on.

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

1December

October Existing Home Sales Rise – Sending Buyers Home for the Holidays

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existing home sales riseOctober existing home sales were more “treat” than “trick” thanks to a 1.4% month–over-month increase in existing-home sales in October. The uptick in sales prompted The National Association of Realtors, (NAR) to adjust the annual projected sales rate upward by 13.5% from a 4.38 million unit sales pace in October 2010 to a projected 4.97 million sales pace for 2011.

Here is the distribution of sales by categories according to a DSNews.com Recap:

  • First-time homebuyers comprised 34% of purchases.
  • Investors took an 18% share of home sales.
  • Cash purchases were 29% of sales.
  • Inventory of single-family homes for sale fell 2.2% to 3.3 million.
  • Inventory fell from an 8.3 month supply in September to an 8 month supply in October.
  • Distressed purchases fell to 28% of transactions.
  • Foreclosed properties were at 17% of sales.
  • 11% of distressed sales were short sales.
  • The national median existing-home price was $162,500—down 4.7 % from the prior month.
  • Some regions experienced shortages of desirable properties in modest price ranges. This triggered multiple offers and unmet buyer demand.

How do these trends compare to what you see in your marketplace? What would help sales to rise in your region?

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

29November

25 Appreciating Housing Markets – 7 “Boom-Town” Economies

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25 Appreciating Housing MarketsThis year’s list of appreciating housing markets holds surprises reminiscent of boom towns and gold rush days. This time it’s “black gold” that is causing the stir. Recent news stories have chronicled the massive oil reserves discovered in North and South Dakota which have transformed the Dakotas into America’s hottest spot for new jobs and homebuilding.

A recent CNN interview revealed that North Dakota has gone from 4,500 oil industry employees in 2005 to over 35,000 full time oil industry employees today.  “There are 2,000 job openings on any given day” says Ron Ness of the North Dakota Petroleum Council.  Governor Dalrymple reports that North Dakota’s unemployment rate of, 3.5% is the lowest in the nation.  Housing is scarce and booming. Reportedly a two bedroom apartment, when available, rents for $2,500 per month.

This new development has landed the Dakotas seven out of 25 spots on the list of “Best Market Forecasts 2011-Update”. The update was published by Housing Predictor on Thursday, November 3, 2011.

Other Appreciating Housing Markets – A U.S. military realignment program and a robust border town economy landed El Paso, Texas in the #1 spot on this year’s list. Check out this year’s line up and tell us which cities or regions you think might be missing.  Do you see a lot of movement in or out of your area based on job opportunities?

The 25 “Best Market Forecasts 2011” cities are:

  1. El Paso, TX
  2. Tri-Cities, WA
  3. Omaha, NE
  4. Fargo, ND
  5. Austin, TX
  6. New Orleans, LA
  7. Iowa, City, IA
  8. Bellevue, NE
  9. Bismarck, ND
  10. Bethesda, MD
  11. Silver Spring, MD
  12. Metairie, LA
  13. Des Moines, IA
  14. Rapid City, SD
  15. Davenport, IA
  16. Grand Forks, ND
  17. Sioux City, IA
  18. Black Hills, SD
  19. Sioux Falls, SD
  20. Manchester, NH
  21. Minot, ND
  22. Monroe, LA
  23. Cedar Rapids, IA
  24. Burlington, VT
  25. Rochester, NH

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

22November

Real Estate Coach – A Daily Dose

Most sports teams have one thing in common. They all have coaches.  Most real estate professionals do double duty as coaches, encouraging clients in their property search and fellow agents in selling properties.

In the interest of “encouraging the encouragers,” we are sharing a resource we’ve recently found.  It’s RealEstate Coach Radio.com, a “5-minute Daily Internet Show For Real Estate Professionals.”  The format is a great fit for time-challenged real estate practitioners, written for a broad market of residential real estate sales professionals. The show features Bernice Ross  named, America’s top real estate coach by Inman News – Inman.com.  The daily resource is free to subscribers.

Show segments provide actionable information from industry experts on topics Realtors® wrestle with on a daily basis.  It’s informative and every segment is closed with a motivational gem. The show is like a nutritional supplement for your real estate day. It tackles hot topics, compressed in shows that are 5 minutes or less in length.  They also make scripts available.

Recent topics include: “How to Get First Time Buyers off the Fence and Under Contract;” “A Blueprint for Facebook Success;” “Client Questions That You Should Never Answer;” and “A Quick Tip to Improve Your Energy.”  The show recently featured an interview series with David Stevens, President of the Mortgage Bankers Association, entitled “A Bullish View on Homeownership.”

Check it out and enter a comment to let us know what you think.

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

18November

“The Best Time Ever to Buy” | President and CEO of Mortgage Bankers Association

Is this the best time ever to buy real estate? A Google search on the topic revealed a page of articles from experts who state unequivocally that it is. Should buyers wait for the market to hit bottom or could rising interest rates cancel out anticipated savings? This recap is a fresh take on the real estate market with a positive perspective.

  1. “The Market is Stabilizing”- Delinquency rates are down from 10 percent in the second quarter of 2010 to 8.5 percent for second quarter 2011.  Delinquencies among fixed rate loans dropped to 5 percent in 2011—this is near the normal range.
  2. “Most Sectors are Experiencing Real Home Price Growth”- Both the negative equity issue and the challenge of declining home prices are actually concentrated in a few key states. David H. Stevens, the president and CEO of the Mortgage Bankers Association in Washington, D.C., notes that “24 percent of the foreclosure activity is concentrated in Florida. Fifty percent of the foreclosure activity is in five key states.” He suggests that those who quote declines in the average price of homes nationally are using dangerous data, since each market is different.
  3. “Price Declines are Not a National Problem” – Stevens observes that “If you remove the foreclosure properties from the equation, non-distressed properties have actually experienced an increase in prices.”
  4.  The Best Time Ever to Buy”- For those waiting for the market to hit bottom before purchasing, Stevens provides a reality check scenario. Buyer A plans to finance a home purchase with a $200,000 mortgage.  He waits until the market price has dropped an additional 5% because he wants to buy at the bottom of the market. Buyer A saves $10,000 on the sales price of the house. During the waiting period interest rates increase from 4% to 6%, adding an additional $87,937 in interest to the cost of owning the home. Subtract the $10k savings on sales price and the delay will cost the Buyer A an additional $77,937 in interest payments. Many are waiting to save a small percentage of the price of the home when rising interest rates could cost them much more.
  5.  “If There Were Ever A Time To Buy” – Stevens’ bottom line assessment is clear: “Real estate is now at bargain levels that we will never see again in our lifetimes. If there were ever a time to buy a home, that time is now.”

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

Source: This is a recap of a recent interview of David Stevens, former head of FHA and the current President and CEO of the Mortgage Bankers Association conducted by Bernice L. Ross, Master Certified Coach, Ph. D, and Author of Real Estate Dough, Your Recipe for Real Estate Success.

3November

HUD Announces Suspension of Allied Home Mortgage

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HUD announces Suspension of Allied MortgageOn Wednesday, November 2, 2011, the Department of Housing and Urban Development (HUD) announced the immediate suspension of Allied Home Mortgage, “thereby preventing it from originating and underwriting new FHA mortgages.” Government loan insurer Ginnie Mae also suspended Allied, “which eliminated its ability to offer VA, Rural Housing Service and Office of Public and Indian Housing mortgages.”

Real Estate professionals should be aware of this development and inform clients who are relying on Allied for lending.  Read more»

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

 

27October

Five Fall Housing Trends of 2011

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Five Fall Housing TrendsIs it time to buy? How long will mortgage rates stay low?  Will it become easier to qualify for a mortgage—or is it better to rent? Will foreclosed properties become available to rent? How will the recent lowering of loan limits impact houses in lower price categories? Will short sale volume grow or shrink in the fall marketplace?

If you are a real estate professional or a prospective buyer who has struggled with these questions, here’s a resource that may help. Fox Business.com recently published a feature story that addresses these issues–and more– in an article titled “Five Housing Trends in Fall 2011”. The writer explores not only the trends but also the anticipated timeframes and estimated outcomes. At least five expert industry sources from around the country are quoted in the article.  Scores of market observers are asking these questions; hopefully this resource will shed some light on the topics for prospective home buyers and real estate professionals alike.

The 5 key forecasted trends include:

  1. “Mortgage Rates Won’t Stay Low Forever — Just a Long Time”
  2. “Lenders Will Keep Their Strict Underwriting Standards”
  3. “Foreclosures Will Become Rentals”
  4. “Lower Loan Limits Will Push Home Values Further Down”
  5. “A New Wave of Distressed Properties Will Crest”

 

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

21October

Good News and “Happy Talk” – From an Economist!

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You probably have noticed that the media provides a steady stream of sobering reports on everything from foreclosures, to the housing market and the economy in general. You may be wondering whatever happened to the elusive “silver lining.” We’d like to share a rare resource—good news from an economist!

Economist Jeff Thredgold, CSP publishes a semiannual update called,  “Happy Talk” via his weekly online guide called “Tea Leaf by Jeff Thredgold.”  This self-proclaimed “economic futurist” takes a broad look at how our country is doing compared to historic and international benchmarks.

It’s good to remind ourselves that despite our challenges, we are still a nation of extraordinary accomplishments—well worthy of reflection.  Think of it as a 2- minute encouragement break, and feel free to share!

This edition of “Happy Talk” was originally published October 4, 2011.

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