13February

First Preston HT Celebrates 26th Anniversary

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HeartTree26th.v4 copyOn February 14th, the First Preston HT family of companies celebrates 26 years of business innovation and exemplary customer service. First Preston HT extends appreciation to our employees, our national network of associates, and our clients who have helped to cultivate a legacy of business success and community service.

The First Preston HT family of brands includes:  First Preston, HomeTelos, HomeTracker, BidSelect, Lender Center, HT Solutions and Outdoor Quota Solutions.  To learn more about First Preston HT, visit www.FirstPrestonHT.com.  Remember to Like us on Facebook and follow us on Twitter.

10February

New Home Sales Pull Back, Along with Other Things

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graph in a paper with wooden housesThe equity market’s quick sprint out of the gate since the New Year seems to have tripped over a rock and new home sales seem to be on the same downward path.  The beginning of January experienced positive growth in the markets and upbeat predictions surrounding the economy. However, in the past week, events and expectations have shifted in the opposite direction quickly.  Since the beginning of the year, the Dow Jones Industrial Average has plunged 4.39 percent and the S&P 500 has sunk by 2.93 percent, as of the end of January.

This past Wednesday, the Federal Reserve announced a further cut back on its stimulus efforts by another $10 billion dollars, sighting the economy looks strong enough to expand on its own.  This lack of availability of liquidity to the emerging markets is taking a toll on their respective currencies, resulting in a flight to quality for most investors.  These larger macro-economic events are spilling over into housing and affecting U.S. consumers that are in the market to purchase a house.

New home sales have continued to deteriorate considerably over the last few months due to tight credit qualifications  and upward pressure on prices.  Traditionally the new home sales market has been composed of 40 percent first time home buyers and 10 percent cash investors.  This composition has evolved now to 27 percent first time home buyers and 30 percent cash.  As new home prices increase, this inevitably knocks lower income consumers out of the market while catering to those on the high-end.

The FHA product that many first time home buyers utilize has become more expensive, further keeping first time home buyers out of the market.  Qualifications have also become more rigorous.  Mark Hanson, a California-based housing analyst commented, “In reality, new home sales to me is simply the best gauge of ‘end-user’ demand, which of course is hugely important. But the persistent divergence between new sales and existing highlight just how powerful the ‘transitory’ investor trade has actually been.”

Recently reported new home sales in December fell more than expected, dropping 7 percent to a seasonally adjusted annual rate of 414,000 units.  Additionally, November’s new home sales were revised down by 19,000 units.  Some economists believe part of this drop reflects a drag due to the cold weather that most of the country experienced last month.  On a positive note, new home sales for December 2013 were up 4.5 percent from December 2012.

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.

28January

Technology for Real Estate: Discover Which Companies are Tracking You on Facebook

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tug of war shutterstock_63561718With free or paid apps and some websites, there’s a delicate balance between enjoying the  application  and protecting your privacy. Technology for real estate practitioners has exploded with hundreds of cool apps and devices within the last 5 years.

For most successful real estate professionals, social media is not an option; it’s a key strategic marketing tool and an efficient way to connect with your sphere of influence.  

Have you ever downloaded a free app or visited a site that offered to allow access via  your Facebook login? Happens all the time, right? Your login gives that entity access to your Facebook profile. It allows them to park inside your Facebook account, harvesting your information for years or decades, until you eject them. Years of your info can be mined and sold as the result of one login.  

Here’s a quick way to find out which apps are tracking you, what info they are collecting and how to stop them.

To see which apps are tracking you:

  1. Open your Facebook page, click on the settings icon at the top and far right of your screen. From the drop-down menu select “settings”.
  2. Locate and click the   “Apps “  icon inside the settings menu . (Usually on the left of the screen.)
  3. Notice the resulting list of apps that are “signed into your account”.
  4. At the bottom of the list notice and click the “Show All Apps” link. This will reveal the remainder of the list of apps that are tracking you.
  5. To the right of each app’s name, there is an “edit” function and an “X” mark.
  6. Click on the edit function to see what the app knows about you.  Adjacent to the “Your basic info (?) “  bullet point,  click the question mark to learn more details about data points being shared.
    •  I learned that the first app I clicked has my email address, profile picture, gender, user ID, list of friends, and “any other information which is rated public.”
    •  I noticed these statements, “ This app may post on your behalf, including status updates, photos and more. This app can also access posts in your News Feed.”
    • Check the settings for each app and modify any unwanted access by clicking the edit function to limit access or click the “X” icon to end the app’s access to your account. The app may stop working for you; so weigh your options prior to making your edits.

Hopefully this article will help users to strike the perfect  balance between enjoying your favorite apps and protecting your privacy.

For more information or detailed screen shots of the instructions above, check out a great article from Business Insider, written by Jim Edwards. 

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

22January

The Housing Market in 2014

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It is the start of a new year which comes with  new predictions of what the housing market will experience over the course of the next 12 months.  A look back at the housing market in 2013 showed a road to recovery, albeit slow.  Forecasts for 2014 don’t seem to be overly optimistic so far. Pressure from higher interest rates, more rigorous credit qualification standards, and tight housing supply make the 2014 outlook a more challenging one.

HousingMarketWeak residential mortgage origination results  for  the fourth quarter were recorded  by Wells Fargo and JP Morgan Chase. Therefore analysts expectations for 2014 are being revised downward.  The Mortgage Bankers Association (MBA) lowered its mortgage origination projections for 2014 by $57 billion to $1.12 trillion.  Mike Fratantoni, chief economist for MBA, commented, “Despite an economic outlook of steady growth and a recovering job market, mortgage applications have been decreasing—likely due to a combination of rising rates and regulatory implementation, specifically the new Qualified Mortgage Rule.” A large portion of the reduction is refinance applications which are now estimated to decrease 60 percent this year from last year.

Mortgage rates are expected to rise above 5 percent this year which could put further pressure on the housing market.  The MBA has lowered its 2014 projections relating to purchase originations to $677 billion down from $711 billion that was previously forecast.  All-cash purchases still make up 32 percent of the housing market according to November readings from the National Association of Realtors (NAR).  This number is up from October.

Home builder confidence fell in January following a steep rise in December.  “Rising home prices, historically low mortgage rates and significant pent-up demand will drive a continuing, gradual recovery in the year ahead.  However, the pace of the recovery could be stronger were it not for rising construction costs and inaccurate appraisals that are keeping some home sales from going through,” said NAHB Chief Economist David Crowe.

There is some good news surrounding the housing market according to Patrick Newport of IHS Global, “Builders are facing the headwind of rising construction costs, but buyer traffic has held up well despite rising mortgage rates. After hitting a plateau in the middle of 2013, the market for new homes is poised for a stronger 2014.” It will be interesting to see how the housing market adjusts throughout the year and whether or not it ends up stronger than 2013.

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.

15January

Five Top 2013 Innovations That Impact Real Estate

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272F60BAE2F5E0A349E4742A1EB8One great hallmark of 2013 was rapid technological transformation. New apps and gadgets emerged in quick succession in a virtual leap frog of releases by major players.  The field of real estate is the primary beneficiary of several key advances. Here are five top 2013 innovations that impact real estate. These exciting advances flew onto our radar screens in 2013.

  1. Civilian Drones.  The aerial listing tour has become a reality. Visual capture of surrounding neighborhoods, parks and terrain from the sky, arrests the attention of shoppers, and multiplies the marketing appeal of virtual tours.  Drones facilitate indoor tours also; generating a virtual viewing experience that exceeds the scope of an in-person property tour.   Virtual retailers such as (Amazon) are working to perfect drones for package delivery.  Even restaurants are considering aerial squads of delivery drones.
  2. Wearable Tech Tools.– The Dick Tracy style wrist watch phone arrived.  Primarily a remote control for your cell phone,   some models have a healthy bundle of apps and capabilities.  Samsung CEO, J.K. Shin predicts their model will become “a new fashion icon around the world.”
  3. The 3-D Printer – What does the 3-D printer have to offer real estate? It could just change the housing industry forever.  Professor Behrokh Khoshnevis of the University of Southern California, has unveiled a 3-D printer which can reportedly “build a house in 24 hours”.  It’s a giant robot whose computer –directed nozzle ejects concrete in a custom pattern, creating walls. Tradesmen then install windows, doors and other necessities.
    1. The innovation has major implications for emergency housing replacement associated with natural disasters. It has implications for affordable housing across the globe and is also being studied by NASA for extraterrestrial possibilities.
    2. The innovative KeyMe App (a 3-D printer based innovation) allows users to print out new keys in less than 30 seconds (according to their website).  Customers are advised to take photos of each of their keys. When one is lost, replace it by forwarding the image to KeyMe and a replacement is printed and delivered.   Duplicate keys are routinely printed in KeyMe kiosks. They can even be customized with various logos and images for promotional or sentimental value.   
    3. A local news broadcast recently reported that a 3-D printer has successfully printed human tissue and skin. Research teams led by Dr. Thomas Boland of the University of Texas at El Paso, expect to custom- produce organs suitable for transplant sometime in the distant future.  That has nothing to do with real estate but was just too cool to pass up.
  4. Virtual Money—Manhattan real estate broker, Bond New York, reportedly accepts Bitcoin for real estate transactions. The firm is thought to be the first in the industry to green-light the virtual currency.  
  5. The Internet of Things—The possibility of our home systems and appliances communicating with our devices is now on the horizon. Google agreed to pay $3.2 billion cash for Nest Labs, a programmable home thermostat company.

Analysts envision the possibility that in the near future; upon departing your residence you might receive a text message from your refrigerator announcing that you are low on butter and milk required by the recipe you printed from the internet last evening.  It might further advise of the nearest grocer currently stocking those items at the best price.  Future listing descriptions might detail which listings contain interactive appliances and  systems and which protocols they are compatible with. There are many other innovations that impact real estate in a profound way. Which ones grabbed your attention during the year?

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.

Photo Courtesy of :  Contour Crafting and MSN Innovation

 

 

 

 

10January

Home Prices Reach for the Stars

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Temperatures across the U.S. are plunging and have left many cities frozen in ice and snow.  One thing not plunging is home prices.  The housing market has continued to experience rising prices along with rising mortgage rates leading to a decline in purchasing power.  Rising home prices and rates deal a double blow to affordability.

According to the S&P Case-Shiller Home Price Index, which follows 20 large cities in the U.S., home prices rose 13.61 percent year-over-year and increased .18 percent from the month of October to November.  Las Vegas had the largest year-over-year gain of 27.05 percent while New York and Cleveland tied for the smallest gain of 4.9 percent.

HomePriceReachUpCoreLogic’s most recent home price report for November 2013, reported home prices (including distressed sales) rose 11.8 percent year-over year.   November’s increase in home prices is the 21st straight month of year-over-year growth.  CoreLogic reports home prices gained 0.3 percent (excluding distressed sales) in November versus October.  CoreLogic economist Mark Fleming said in the release, “The housing market paused as expected in November for the holiday season with very low month-over-month appreciation.”

 According to CoreLogic data, 2013 was the best year for rising home prices in the past 8 years.  It is projected that  2013 year-end results will  show an overall  jump of 11.5 percent.  “It’s too early to tell if the marginal dip in the annual pace of house price inflation in November marks the start of the slowdown in price gains that we are expecting.  But we are confident that annual price gains will not remain in double-digit territory for much longer,” Capital Economics’ Paul Diggle commented.

This is positive news for potential home buyers  still waiting to get into the game.  Mortgage rates dipped to around 4.5 percent last week and many economists doubt this will hinder home sales in the short term (as noted in several  recent blogs).  Rates are still historically low.  Due to the recent pull back in mortgage rates, refinances ticked up 5 percent last week.  Overall refi activity is down 69 percent from a year ago when rates were more than a percentage point lower.

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.

6January

The Granny Flat Revolution | Back to the Future

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Granny Flat 0x600Remember the in-law suite?  The concept has been re-imagined and re-engineered and is now so cool — it’s hot. Dressed in new energy- efficient upscale designs and finishes, some look more like honeymoon suites than in-law suites.

How hot is the in-law suite movement?  A  Google search for the term returned over 86 million results in .29 seconds.  In-law suites often referred to as Granny flats, facilitate a growing trend toward multi-family households, common decades ago.

NAR’s 2013 Profile of Home Buyers and Sellers indicates “fourteen percent of recent buyers purchased a home for a multi-generational household…” This is due in part to our economic climate.  A Wall Street Journal article by Neil Shah supports a different theory. Shah maintains that the increase in foreign-born seniors relocating to the US is a big factor. Shah stated “Foreign born seniors are four times more likely to live with their children”.  Regardless of reason, the trend is global. Many extended families are capturing additional living space via additions such as granny flats; while others choose new construction with self-contained secondary living suites.

Australian designers appear to be leading the industry with modular dwellings.  Some are built as stand-alone properties while others are integrated as secondary (back yard) structures designed to complement the architecture of the primary residence. They are so advanced; think of them as in-law suites’ on steroids.

Added quarters accommodate returning graduates, retired in-laws, art, photography or yoga studios, rentals, care-givers for children or elderly parents, etc. In some communities, granny flats are evolving into stand-alone affordable housing.  Austin’s Alley Flat initiative is one such venture.

Australian entrepreneurs have found great success with the back yard villa or granny flat. The Japanese version is the tiny house. The British know them as garden cottages.  In Fort Worth watch for accessory dwelling units (ADUs).

In his book, In-laws, Outlaws and Granny Flats: Your guide to Turning One House into Two Homes, author Michael Litchfield, explains the six types of in-law flats. The link above showcases “10 Chic Granny Flats” from Litchfield’s book, posted on Forbes.com.  Houzz.com spotlights 40,605 granny flat home design photos.  Most resemble upscale resort suites or pool houses with functioning kitchens and sleeping quarters.   Take a minute to scroll through. They are energy-efficient, and stylish.

Major metros around the country are amending housing ordinances, while establishing zoning and construction specs for this evolving category of dwellings. Multi-family homeowners are evaluating whether to expand current homes   or opt for custom new construction.

For 2014 and beyond expect to see more builders offering multigenerational floor plans. Consider developing a niche by focusing on multigenerational housing options. Bernice Ross with Inman News acknowledges this as a “prime opportunity in 2014”.  

Watch for self-contained granny flat modules, fabricated domestically or imported from abroad.  Check out local policy and valuation history for in-law suites. Keep a list of the best multi-family residential builders in your area. Use social media to ensure that your sphere of influence is aware of your special expertise.

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.

Photo Courtesy of : In-laws, Outlaws and Granny Flats: Your guide to Turning One House into Two Homes

31December

Home Mortgage Applications Hit 13-year Low

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Applications DownAs 2013 winds to a close, economic conditions have made large strides since the beginning of the year.  2013 Definitely had its fair share of headwinds surrounding the economy, job market and housing market.   Stock markets experienced strong gains the past few days, reaching new highs.  Home prices have increased and foreclosure rates are on the decline.  One thing holding the housing market back however is home mortgage applications.

According to the Mortgage Bankers Association (MBA), U.S. home mortgage applications fell for the  second consecutive week,  hitting a 13-year low, dropping 6.3 percent from the week prior,  December 20th.  Rising mortgage rates might be scaring away some potential home buyers.  The 30-year fixed mortgage rate averaged 4.64 percent last week.  Rates have steadily increased in response to the Federal Reserve’s decision to begin tapering asset purchases by $10 billion a month.

“Following the Federal Reserve’s taper announcement, mortgage application volume dropped again last week, with rates increasing and refinance application volume falling to its lowest level since November 2008.  Purchase application volume was weak too, continuing to run more than ten percent below last year’s pace. Notably, government purchase application volume is almost 25 percent below where it was at this time last year, with the larger drop compared to conventional purchase likely due to the increase in FHA premiums over the course of the year,” said Mike Fratantoni, MBA’s Vice President of Research and Economics.

As rates continue to tick up, the number of refinances will drop accordingly.  Refinances as a percentage of total mortgage activity, dropped to 65 percent from 66 percent in the week prior .  The MBA’s seasonally adjusted index of refinancing applications dropped 7.7 percent.

Reported November new home sales numbers offered more attractive data than application numbers.  Signed purchase contracts for new  homes dropped slightly but this was after October’s data was revised up 25 percent.  Squaring “the near highest level of new home sales in years with a multiyear low in mortgage applications to buy a home continues to tell me that investors are beginning to get their feet wet in the new home space with the goal of renting these homes out,” analyst Peter Boockvar of the Lindsey Group said. “The secular shift to renting should continue.”  When Boockvar broke down the numbers by region in the U.S. he noted, “The South is surging; the rest of the nation is not.  If you back out the South October surge, the numbers are in line with the tepid demand since July, when [mortgage] rates surged.”

With 2014 right around the corner, it will be interesting to see what the new year holds for the housing market.

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.

24December

Oh Come, All Ye Taper

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The long awaited final Federal Reserve meeting of the year and concluding meeting for Bernanke’s term has arrived.  Thursday the Federal Reserve released the news that it would finally begin to taper quantitative easing, albeit a slight taper, signaling the Federal Reserve is seeing signs of growth and strength in the job market.  Federal Reserve officials stated they would taper bond purchases from $85 billion a month to $75 billion.  How will this affect you and the housing market?

TaperBondsAs the Federal Reserve slows its printing press in light of the taper, rates are likely to increase, meaning homebuyers will pay more for home loans in the form of mortgage rates and business loans will cost more as well.  Current 30-year fixed rates are hovering around 4.57 percent and will probably head higher.  Ellen Haberle, an economist at the online real-estate brokerage Redfin commented, “Homebuyers aren’t going to be happy.  In the weeks ahead, mortgage rates are likely to reach or exceed 5 percent.”  It is important to note these rates are still at historic lows even though they are starting to climb.  Analysts believe this is not enough to halt the housing market recovery.  “It’s a better economy that gets people to buy houses,” said senior financial analyst at Bankrate.com, Greg McBride.

In most recent housing data the fear of a taper seems to have vanished.  Housing starts soared to a six-year high, jumping 22.7 percent in November according to the Commerce Department.  This was the biggest increase since January 1990 and the highest level of starts since February 2008.  Starts for multi-family homes jumped 26.8 percent and have risen strongly during the recovery as demand for rentals remains high for those unemployed or unable to qualify for a home loan.

Homebuilder confidence this month was positive and builders were optimistic regarding current sales conditions, forward looking sales and potential homebuyers.  The National Association of Home Builders monthly sentiment index (HMI) increased 4 points, its highest level since August.  “This is definitely an encouraging sign as we move into 2014.  This indicates that an increasing number of builders have a positive view on where the industry is going,” says NAHB Chairman Rick Judson, a homebuilder from Charlotte, N.C.

Now that there is more certainty in the housing market and the economy, businesses and consumers can make more educated decisions concerning hiring, taking out loans and making large purchases.  Craig Strent, CEO of Apex Home Loans in Rockville, MD, stated, “Mortgage interest rates generally hate the idea of uncertainty, so this definitely brings some certainty in terms of the Fed showing their cards as far as the direction of rates.”

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.

17December

The New Year Brings New Changes in FHA Loans

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House prices continued to grow during 2013 and it appears the housing market is on the road to recovery.  While more than one-third of the housing market is still being supported by cash investors, home sales and mortgage numbers increased during the first half of the year.  Foreclosures are also down due to fewer homes being foreclosed on by the banks.   As homebuyers gain more confidence in the market by a show in rising home prices, interest rates have also accelerated (30-year fixed rate was 4.48% last week) making home affordability harder to find.  With all these changes, the Federal Housing Administration (FHA) is rolling out some new plans of their own.

The newspaper LATEST NEWS with the headline CHANGE WILL COMEStarting January 1, 2014,  FHA is lowering its lending limits across the board.  FHA Commissioner, Carol Galante, said in a release, “As the housing market continues its recovery, it is important for FHA to evaluate the role we need to play.  Implementing lower loan limits is an important and appropriate step as private capital returns to portions of the market and enables FHA to concentrate on those borrowers that are still underserved.”  The new limit on less expensive loans is being lowered by over $75,000 to $271,050.  More expensive loans are being reduced by more than $100,000 to $625,000.  This is expected to affect approximately 650 counties in the U.S.

 FHA also announced it would further increase the fees they charge to lenders starting in March of the coming year.  Earlier this year FHA raised premiums and fees.  Unfortunately, the increased costs will end up being passed along to the borrowers in the form of higher interest rates.  “The new pricing continues the gradual progression towards more market-based prices, closer to the pricing one might expect to see if mortgage credit risk was borne solely by private capital.  These changes should encourage further return of private capital to the mortgage market,” noted the FHFA’s acting director, Ed DeMarco, in a release.

The economy and job market are still struggling to really make big leaps and the new FHA regulations could make it harder for first time homebuyers to purchase.   FHA has had financial struggles of its own, and increasing fees and lowering their risk is the prudent thing for them to do.  As home prices continue to rise and mortgage rates increase, purchasing power will lessen and those looking for an FHA loan might have to consider private financial resources.

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.