Thursday, June 7, 2012
Wednesday, June 6, 2012
Is the Housing Market Recovery Splitting in Two?
A new article at CNBC.com suggests that the real estate market is splitting in two, with the high-end segment soaring and the rest of the market continuing to struggle as it inches toward recovery mode.
“It’s become a tale of two markets,” Michael Simonsen, CEO of Altos Research, told CNBC.com. “At the high end, well-financed people have taken advantage of cheap money. And demand is up, inventory is down, and prices are responding.”
The article says that wealthy buyers tend to have good credit and are taking advantage of record low mortgage rates.
As such, in housing markets with median home prices of $1 million or more, home prices have jumped more than 10 percent year-over-year, according to Altos Research. Inventory is also down by 10 percent. What’s more, areas with a median home price of $10 million or more, home prices have risen 13 percent or more, according to Altos.
So how about the other “side” of the market? Unemployment and tightened lending conditions that have caused some buyers to struggle to obtain financing continues to slow the housing recovery, housing experts note.
Source: “Tale of Two Markets: No Downturn in Megahome Sales,” CNBC.com (June 5, 2012)
“It’s become a tale of two markets,” Michael Simonsen, CEO of Altos Research, told CNBC.com. “At the high end, well-financed people have taken advantage of cheap money. And demand is up, inventory is down, and prices are responding.”
The article says that wealthy buyers tend to have good credit and are taking advantage of record low mortgage rates.
As such, in housing markets with median home prices of $1 million or more, home prices have jumped more than 10 percent year-over-year, according to Altos Research. Inventory is also down by 10 percent. What’s more, areas with a median home price of $10 million or more, home prices have risen 13 percent or more, according to Altos.
So how about the other “side” of the market? Unemployment and tightened lending conditions that have caused some buyers to struggle to obtain financing continues to slow the housing recovery, housing experts note.
Source: “Tale of Two Markets: No Downturn in Megahome Sales,” CNBC.com (June 5, 2012)
Wednesday, May 23, 2012
Housing Recovery
Housing Recovery to Occur in Two Phases: Demand Institute
05/15/2012 By: Esther Cho
05/15/2012 By: Esther Cho 
The housing recovery will come in two phases. First, home prices will rise by just under 1 percent in the second half of 2012. In 2013, prices will rise by 1.5 percent, then go up another 2.5 percent in 2014. For the second phase, home prices will increase 3 to 3.5 percent between 2015 and 2017. These are the predictions from a report released by the Demand Institute, which is jointly operated by The Conference Board and Nielsen.
The report, titled The Shifting Nature of U.S. Housing Demand, stated investors who buy rental properties will lead phase one of the recovery, as opposed to buyers who purchase properties as their own residence.
However, Bart van Ark, chief economist at The Conference Board and co-author of the report, said the expectation for homeownership rates is not expected to change in the long-term.
The report, titled The Shifting Nature of U.S. Housing Demand, stated investors who buy rental properties will lead phase one of the recovery, as opposed to buyers who purchase properties as their own residence.
However, Bart van Ark, chief economist at The Conference Board and co-author of the report, said the expectation for homeownership rates is not expected to change in the long-term.
“Over 80 percent of Americans in recent surveys still agree that buying a home is the best long-term investment they can make. What will be intriguing to watch is how their aspirations around home ownership are affected by this period of extended austerity,” he said.
During the first phase, the demand for rental properties will come from young people hit hard by the recession and immigrants.
As investors buy up the oversupply of homes to take advantage of low prices and rising rents, the report also predicts that this will lead to the absorption of the existing surplus, which will clear by the start of 2015.
Then, phase two will begin with higher home prices and a return to home ownership.
According to the report, currently, 11 percent of homeowners say they would like to sell their home, but about half of these homeowners say they aren’t listing their property because they won’t get the price they want.
The prediction is that once prices rise by 3 percent in 2015, homeowners will start to return to the market, increasing the volume of home sales.
Credit will also become more accessible as standards ease, leading to more renters to become buyers. The report stated a crash in demand for rental properties is unlikely.
According to the report, about $7 trillion in American wealth was lost when home prices dropped 30 percent after the housing bubble burst.
During the first phase, the demand for rental properties will come from young people hit hard by the recession and immigrants.
As investors buy up the oversupply of homes to take advantage of low prices and rising rents, the report also predicts that this will lead to the absorption of the existing surplus, which will clear by the start of 2015.
Then, phase two will begin with higher home prices and a return to home ownership.
According to the report, currently, 11 percent of homeowners say they would like to sell their home, but about half of these homeowners say they aren’t listing their property because they won’t get the price they want.
The prediction is that once prices rise by 3 percent in 2015, homeowners will start to return to the market, increasing the volume of home sales.
Credit will also become more accessible as standards ease, leading to more renters to become buyers. The report stated a crash in demand for rental properties is unlikely.
According to the report, about $7 trillion in American wealth was lost when home prices dropped 30 percent after the housing bubble burst.
Tuesday, May 15, 2012
The Cost of Getting a Loan is on the Rise
The Cost of Getting a Loan is on the Rise
Closing costs for a mortgage averaged $4,143 last year, which is 12.4 percent higher than in 2010, Bankrate.com reports.
Despite record low mortgage rates, borrowers are finding the cost of getting a loan is on the rise.
Origination fees have posted some of the biggest increases, rising 12 percent in 2011 to $1,045, according to Bankrate.com data. Attorney costs and other settlement fees now average $544, a 9.6 percent increase. Appraisal fees have risen 7.8 percent, averaging $406.
Closing costs vary quite a bit among lenders so it can pay for borrowers to shop around, housing experts say. For example, origination fees can range anywhere from $123 to more than $2,000.
Analysts say part of the reason behind the increase in fees is the increased cost to lenders of processing loans with more paperwork required nowadays.
Last week, the Consumer Financial Protection Bureau proposed new rules to limit certain fees lenders require borrowers to pay at closing. One of the fees the agency said it hopes to ban is a fee referred to as “origination points” that buyers sometimes must pay at closing.
“Mortgages today often come with so many different types of fees and points that it can be hard to compare offers,” Richard Cordray, the director of the Consumer Financial Protection Bureau, told The New York Times. “We want to bring greater transparency to the market so consumers can clearly see their options and choose the loan that is right for them.”
Source: "Rising Costs Hit Homeowners Chasing Lower Rates," The Wall Street Journal (May 9, 2012) and “Consumer Bureau Proposes Mortgage Fee Limits,” REALTOR® Magazine Daily News (May 10, 2012)
Despite record low mortgage rates, borrowers are finding the cost of getting a loan is on the rise.
Origination fees have posted some of the biggest increases, rising 12 percent in 2011 to $1,045, according to Bankrate.com data. Attorney costs and other settlement fees now average $544, a 9.6 percent increase. Appraisal fees have risen 7.8 percent, averaging $406.
Closing costs vary quite a bit among lenders so it can pay for borrowers to shop around, housing experts say. For example, origination fees can range anywhere from $123 to more than $2,000.
Analysts say part of the reason behind the increase in fees is the increased cost to lenders of processing loans with more paperwork required nowadays.
Last week, the Consumer Financial Protection Bureau proposed new rules to limit certain fees lenders require borrowers to pay at closing. One of the fees the agency said it hopes to ban is a fee referred to as “origination points” that buyers sometimes must pay at closing.
“Mortgages today often come with so many different types of fees and points that it can be hard to compare offers,” Richard Cordray, the director of the Consumer Financial Protection Bureau, told The New York Times. “We want to bring greater transparency to the market so consumers can clearly see their options and choose the loan that is right for them.”
Source: "Rising Costs Hit Homeowners Chasing Lower Rates," The Wall Street Journal (May 9, 2012) and “Consumer Bureau Proposes Mortgage Fee Limits,” REALTOR® Magazine Daily News (May 10, 2012)
Thursday, May 10, 2012
Flood Insurance: Don’t Give Lenders One More Reason to Say ‘No’
Flood Insurance: Don’t Give Lenders One More Reason to Say ‘No’ Click this link and find out why this is important, especially if you live in a flood plain area.
Wednesday, May 9, 2012
Buying is Cheaper Than Renting in Nearly All Major Cities
Buying is Cheaper Than Renting in Nearly All Major Cities
Home buying is the smarter choice than renting, according to Trulia’s Winter 2012 Rent vs. Buy Index.
Buying a home is more affordable than renting in 98 of the nation’s 100 largest metro areas, according to the index, which tracks asking prices for rental units compared to for-sale homes in major metro areas.
The only two metros out of the 100 tracked where renting was found to be the better deal: Honolulu and San Francisco. Still, the index notes that if you plan to stay in those markets more than five years, you might still be better off owning than renting in those markets too.
Falling home values and low mortgage rates have made home ownership more affordable. Meanwhile, rents have been on the rise.
“As rents rise and prices stagnate, home ownership is becoming even more affordable, but rising rents create a dilemma for people who can’t afford to buy yet,” says Jed Kolko, Trulia’s chief economist. “Rising rents make it harder for people to save for a down payment, which is the biggest barrier to buying a home that aspiring home owners face.”
Top 10 Metros to Buy vs. Rent
1. Detroit
2. Oklahoma City, Okla.
3. Dayton, Ohio
4. Warren-Troy-Farmington Hills, Mich.
5. Toledo, Ohio
6. Grand Rapids, Mich.
7. Cleveland, Ohio
8. Atlanta
9. Gary, Ind.
10. Memphis, Tenn.
By Melissa Dittmann Tracey, REALTOR® Magazine Daily News
Buying a home is more affordable than renting in 98 of the nation’s 100 largest metro areas, according to the index, which tracks asking prices for rental units compared to for-sale homes in major metro areas.
The only two metros out of the 100 tracked where renting was found to be the better deal: Honolulu and San Francisco. Still, the index notes that if you plan to stay in those markets more than five years, you might still be better off owning than renting in those markets too.
Falling home values and low mortgage rates have made home ownership more affordable. Meanwhile, rents have been on the rise.
“As rents rise and prices stagnate, home ownership is becoming even more affordable, but rising rents create a dilemma for people who can’t afford to buy yet,” says Jed Kolko, Trulia’s chief economist. “Rising rents make it harder for people to save for a down payment, which is the biggest barrier to buying a home that aspiring home owners face.”
Top 10 Metros to Buy vs. Rent
1. Detroit
2. Oklahoma City, Okla.
3. Dayton, Ohio
4. Warren-Troy-Farmington Hills, Mich.
5. Toledo, Ohio
6. Grand Rapids, Mich.
7. Cleveland, Ohio
8. Atlanta
9. Gary, Ind.
10. Memphis, Tenn.
By Melissa Dittmann Tracey, REALTOR® Magazine Daily News
Friday, April 27, 2012
National Open House Weekend
The weather will be beautiful, take a drive or a walk and see what these homes have to offer.
Sandy Springs
45 Marchman Drive, $649,900- 4 bedroom 4.5 bath. Complete transformation of a 50's ranch, all the upgrades and features you are looking for. Super location, Pool. Award Wining schools- Riverwood High School
5154 Timber Trail South, $445,000- 4 bedroom 3 bath. Updated ranch in High Point. Great floor plan, bonus rooms, finished terrace level. 2 car garage. Beautiful lot on quiet hidden street. 2 miles from Chastain park, Award winning schools- Riverwood High School.
570 Pine Forest $350,000- 3 bedroom 2 bath. Charming galore in Meadowbrook. On the cul-de-sac, rocking chair porch, Amazing deck overlooking private back yard and meadow. Hardwood floors, updated kitchen, bath, huge laundry room and double carport.
Avondale Estates
3405 Burdett Court- $299,900- 3 bedroom 2.5 bath. Absolutely perfect home in the Village of Avondale. Priced under market value. 10 ft ceilings on main, open floor plan, screen porch and deck. Magnificient master suite. Second floor laundry and garage. Check out the secret garden and pergola.
I hope you will come and see these beautful homes on Sunday.
Thanks
Kim
The weather will be beautiful, take a drive or a walk and see what these homes have to offer.
Sandy Springs
45 Marchman Drive, $649,900- 4 bedroom 4.5 bath. Complete transformation of a 50's ranch, all the upgrades and features you are looking for. Super location, Pool. Award Wining schools- Riverwood High School
5154 Timber Trail South, $445,000- 4 bedroom 3 bath. Updated ranch in High Point. Great floor plan, bonus rooms, finished terrace level. 2 car garage. Beautiful lot on quiet hidden street. 2 miles from Chastain park, Award winning schools- Riverwood High School.
570 Pine Forest $350,000- 3 bedroom 2 bath. Charming galore in Meadowbrook. On the cul-de-sac, rocking chair porch, Amazing deck overlooking private back yard and meadow. Hardwood floors, updated kitchen, bath, huge laundry room and double carport.
Avondale Estates
3405 Burdett Court- $299,900- 3 bedroom 2.5 bath. Absolutely perfect home in the Village of Avondale. Priced under market value. 10 ft ceilings on main, open floor plan, screen porch and deck. Magnificient master suite. Second floor laundry and garage. Check out the secret garden and pergola.
I hope you will come and see these beautful homes on Sunday.
Thanks
Kim
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