Dr. Boyce Real Estate

Foreclosures Falling

2009-12-11T20:57:00.001-08:00

Posted by Kenny Hernandez

NEW YORK (CNNMoney.com) -- Foreclosure filings fell by 8% in November, making it the fourth consecutive month of improvement in the housing market.

There were 306,627 filings last month, according to RealtyTrac, an online marketer of foreclosed properties. That decline follows a 3% drop in October, 4% in September and 1% in August.

"Loan modifications and other foreclosure prevention efforts, along with the recently extended and expanded homebuyer tax credit, are keeping a lid on the most visible symptoms of the nation's ailing housing market -- foreclosures and home value depreciation," RealtyTrac CEO James Saccacio said in a prepared statement.

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Mortgage Help for Some, Not All

2009-12-11T20:44:00.001-08:00

Posted by Kenny Hernandez

NEW YORK (CNNMoney.com) -- Only about 4% of troubled borrowers have received long-term help under the Obama administration's foreclosure prevention program, Treasury officials said Thursday.

A nearly equal number of trial modifications have been denied permanent assistance, the report showed. The reasons include not making monthly payments on time, not submitting all the necessary paperwork and not qualifying for reasons such as insufficient income.

The report, the first comprehensive tally of permanent modifications made, shows that loan servicers have converted 31,382 people from trial adjustments to long-term assistance as of Nov. 30.

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What is Next For Commercial Real Estate?

2009-12-11T17:45:00.000-08:00

By, Meredith Anderson

As the economy seems to be seeing a light at the end of this very dark and long tunnel commercial real estate continues to pull us further back. Commercial real estate companies are now seeming more and more ready for acquisition however with high rates of unemployment, hard lending processes, and uncertainty from investors, commercial real estate is far from out of the woods yet.

Although residential real estate seems to be easing back to a more positive situation, commercial real estate seems to have a gloomier future. With the recent issues with Dubai World, many are feeling that things are only going to get worse before they ever get better. The default rate in speculative debt is said to hit an all time 28 year high by the end of the year. Experts seem to be blaming this trend on the continues rise in unemployment which in essence is hurting the cash flow in the industry. It is said as long as this unemployment trend remains so will the commercial real estate concern. Credit is said to be the second leading cause for this unfortunate trend. Banks are becoming even more unwilling to give out trends protecting themselves for what might come in 2010. According to many, 2010 will be the rock bottom for commercial real estate.

Sources:

http://www.thestreet.com/story/10644059/1/commercial-real-estate-may-be-doomed.html?cm_ven=GOOGLEFI

http://pittsburgh.bizjournals.com/pittsburgh/stories/2009/12/07/daily30.html

http://online.wsj.com/article/BT-CO-20091211-713084.html

Bad Economy...Time to Invest or Save?

2009-12-10T08:04:00.000-08:00

By: Robert Katz

It is a tough decision for most people to decide, now that the economy is said to be bouncing back, whether it is an opportunity to invest or a time to save. Most experts, Including CEO of Century 21, Say that it has never been a better time to Invest. With the cost of capital right now down to record lows in the 4-5% range, the price of real estate still at rock bottom, and the overall availability high due to the overall lack of buyers this theory may not be just a push to help his business. Now most would probably say that they just want to wait a little longer till the economy bounces back with unemployment rates still in the double digits. Yet, based on research done by Realty Times this opportunity that the market is providing may be disappearing faster than most realize. There has been an overall increase by around 4% in housing sales from over the past couple years, with even higher 20% increases in areas like the Northeastern region of the US. Additionally increases in newly constructed homes around the country has increased by over 6% from the last couple years showing that there are financially secure people right now capitalizing on the current buyers market. Now, determining if you should invest is really based on nothing related to the facts I've just given, but more on whether you are financially secure or not. If not then save your money for the essentials, but if you have a decent amount of surplus cash lying around, making little to no interest in that savings account, real estate investment may be something you should seriously consider.
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Price cuts on real estate seem to be waning

2009-12-09T07:56:00.000-08:00

Mary Ellen PodmolikTribune staff reporter
By at least one measure, price cuts on Chicago homes appear to be waning, which means sellers are getting more realistic or they're willing to wait longer for their desired price.

While more than 27 percent of listings in Chicago on Dec. 1 contained at least one price reduction, the number of listings with price reductions still was 15 percent less than a month ago, according to realty Web site Trulia.com.

In Chicago, 27 percent of single-family homes had been reduced in price, by an average of 10 percent from the original price. Among the 26 percent of condos with price cuts, the average reduction was 7 percent.

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Posted By: Amy Nightingale Group 3a

Mary Ellen PodmolikTribune staff reporter

Downsizing your house!

2009-12-08T18:50:00.000-08:00

Posted by Ahmed Al-Salem
A recent Time article has an interesting point, "During the real estate boom, new home construction became a game of ever increasing square footage. That had a certain logic to it: If you saw your house as an investment to make you rich, bigger could only mean better, right? Now that the economy has unfurled and people are realizing that prices don't always go up, houses are getting smaller and more practical. Instead of feeding the desire for flash, architects and homebuilders are responding to how families actually spend time and use space, as well as to new buyers entering the market. "A house is back to being a house," says Stephen Moore, a senior partner of the architecture and planning firm BSB Design in Des Moines, Iowa." This is a good trend to see in society. Bigger is not always better. Why live in a house that is three or four times your capacity to use it and pay more if it won't help you financially or economically. You can still build an awesome house but make it small and fit your needs in the most cost effective way. The article continues: "What does the new American home look like? The shift is obvious as soon as you step through the front door. The grand entryway — the two-story foyer with a sweeping, often multipronged staircase — is quickly giving way to a more modest entrance. Stairs are less about architectural flourish and more about getting upstairs (if you can imagine). That means they're either moving back up against the wall or turning into more-compact switchbacks. The two-story foyer is becoming less and less popular too — in an era of tighter purse strings, who wants to heat and cool all that empty space? "Would you rather have the extra volume or a game room upstairs?" asks Ken Gancarczyk, a senior vice president at KB Home who runs the Los Angeles–based builder's architecture group. Buyers, KB is finding, want the room."

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New York City Real Estate

2009-12-08T18:24:00.000-08:00

Post by David Held

The first thing that comes to mind when anyone mentions buying an apartment in New York City is EXPENSIVE! NYC real estate is arguably the most expensive real estate in the United States.

Why does it possess the most expensive real estate?

1. Location, Location, Location: Almost every major business/corporate has a headquarters in NYC, so the convenience of living next door to your office, not to mention the savings in transportation costs, is going to cost you a pretty penny.

2. Demand for Manhattan real estate has only risen in prior years, thus building owners inflate the price per unit and they get what they ask for.

3. Europe is easy to get to! This also has to with the location. Businessmen and women do not want to fly to California or even Chicago for a meeting, the City is much closer and more convenient.

4. The amount of “stuff” that goes on in the City. NYC has the hottest clubs, bars, shows, museums, restaurants, etc on the planet. “New York is the City that does not sleep.” Which all of this going on in the city and right at your finger tips it tends to increase demand for real estate.

5. It has everything you need (and all in walking or subway distance)!

Sources #1, #2, #3

Junk mortgages: It just gets worse

2009-12-07T20:19:00.001-08:00

POSTED BY: SARA SINDELAR

By Allan Sloan and Doris Burke

NEW YORK (Fortune) -- Back two years ago when the mortgage meltdown was heating up, we wrote an article called "Junk Mortgages Under the Microscope" dissecting a particularly wretched mortgage-backed securities issue peddled by Goldman Sachs.

We wanted to show how these complex securities really worked and how Moody's and S&P, the rating agencies, aided and abetted the process by giving two-thirds of an issue backed by ultra-risky second mortgages the same safety rating they gave to U.S. Treasury securities.

We thought this was a cautionary tale -- but it's turned into a horror story. All the tranches of this issue, GSAMP-2006 S3, that were originally rated below AAA have defaulted. Two of the three original AAA -rated tranches (French for "slices") are facing losses of about 90%, and even the "super senior," safer-than-mere-AAA slice is facing losses of 25%. How could this happen? And what lessons can we take away from it?

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Fed's opinion on Real Estate Market

2009-12-07T17:09:00.000-08:00

BY: Nicole Nelson

The Fed (Federal Reserve) is the central banking system of the U.S. The do many things such as enacting different rates for banks depending on how the economy is at a certain point of time. The Fed reports on how the economy is. Recently the Fed believes that the economy itself seems to be rebounding from the crisis that occurred during the fall of last year. Although the economy does seem to be rebounding, the Fed believes that the housing/real estate market is still struggling. The Fed reported that home prices are still declining. Also they stated that the commercial real estate market is one reason why the present economy is not rebounding as quickly as it should be. Things such as falling rent prices, vacancy rates rising and very little construction on the way is dampening the real estate market. Also, losses on commercial real estate are increasing which shows that the market is “very weak and, in many cases deteriorating”. Although the commercial real estate market is clearly not improving significantly or at all, the residential market’s outlook has improved. Home sales have continued to rise, with a majority of these sales coming from the purchase of less expensive homes. Although the turn-around from the financial crisis has taken some time so far, the turn-around is taking place. The fed stated recently, “This slow-motion recovery is going to take an extraordinary amount of patience.”

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No Escape From TARP for U.S. Banks Choking on Real Estate Loans

2009-12-07T17:02:00.000-08:00

Posted By: Nicole Nelson

Written By:Elizabeth Hester and Linda Shen

Dec. 7 (Bloomberg) -- As the U.S. economy pulls out of a recession and the biggest banks return to profitability, mounting defaults on commercial property may keep regional lenders from repaying bailout funds until at least 2011.

Unpaid loans on malls, hotels, apartments and home developments stood at a 16-year high of 3.4 percent in the third quarter and may reach 5.3 percent in two years, according to Real Estate Econometrics LLC, a property research firm in New York. That’s a bigger threat to regional banks, which are almost four times more concentrated in commercial property loans than the nation’s biggest lenders, according to data compiled by Bloomberg on bailout recipients.

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Commerical Real Estate Far From Recovery

2009-12-07T08:42:00.000-08:00

Posted By, Meredith Anderson
Dec. 7 (Bloomberg) -- As the U.S. economy pulls out of a recession and the biggest banks return to profitability, mounting defaults on commercial property may keep regional lenders from repaying bailout funds until at least 2011.

Unpaid loans on malls, hotels, apartments and home developments stood at a 16-year high of 3.4 percent in the third quarter and may reach 5.3 percent in two years, according to Real Estate Econometrics LLC, a property research firm in New York. That’s a bigger threat to regional banks, which are almost four times more concentrated in commercial property loans than the nation’s biggest lenders, according to data compiled by Bloomberg on bailout recipients.

The concentration makes regulators less likely to let regional lenders like Synovus Financial Corp. and Zions Bancorporation leave the Troubled Asset Relief Program, analysts said. Smaller banks would remain stuck in TARP, while bigger lenders, including Bank of America Corp., repay the government and free themselves to set their own policies on executive pay.

“Community and regional banks basically became real estate banks in the past 25 years, and now real estate is on its back,” said Jeff Davis, an analyst at FTN Equity Capital Markets Corp. in Nashville, Tennessee. “The largest banks have other areas where they can make money, be it consumer lending, capital markets and asset management.”

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Tips for Selling Your House

2009-12-06T13:11:00.000-08:00

By: Laura Reginelli

As many have realized the recent housing and economic crisis have caused a dip in home sales over the past year or two. Selling a house can be considered an art and some individuals fail to realize how to effectively market your home and make the final sale. In today’s world selling a home can be harder than ever so it is important to follow some basic rules in order to secure the sale.

1. Invest in hiring a real estate agent. Some people fail to realize how difficult it really is to sell a house and underestimate the power of a professional.

2. Be positive and persistent. Everyone is having trouble selling homes for the prices that they want to these days. Keep at it and stay motivated. It won’t fail you.

3. Make improvements to both the inside and outside of the house. People will see your home as they drive by and the more aesthetically appealing that it looks the more they will be intrigued to look into buying it.

4. Many experts recommend depersonalizing your home. By making the house less personalized, buyers will be able to envision it the way they want it. A clean slate usually works best.

5. Have realistic expectations when it comes to selling your house. Talk to a real estate agent prior to pricing the house in order to have an expert opinion.

Sources: http://www.ehow.com/way_5263635_tips-selling-house-fast.html?ref=fuel&utm_source=yahoo&utm_medium=ssp&utm_campaign=yssp_art

http://homebuying.about.com/od/sellingahouse/ht/homeprep.htm

http://www.articlesbase.com/real-estate-articles/tips-for-selling-your-house-48920.html

The Best Time to Sell Your Home

2009-12-05T15:24:00.000-08:00

Posted by: Janielle Viggiano

Some of the questions you need to start asking yourself when you’re thinking about selling your home is:

How much equity is in my home? According to essortment.com, “if you’ve made a sizeable down payment, have lived there several years, or neighborhood property values have skyrocketed, you may be able to get a comfortable profit from the sale of your home (2009).”
Is your home in saleable condition? Will you have to market it as a fixer upper or “as-is?”
Where will you move to? “If you plan to downsize or move into an apartment, chances are you need not worry about making a huge profit. But if you would like to buy another home, do you have enough money for the required down payment (essortment, 2009).”
Is the selling market stable or strong? Pay attention to the economy and the news to see if right now is the best time to sell or if you should wait a few months.
Are your circumstances stable? “If a family member is in precarious health, it may be wise to wait until the crisis passes before attempting to sell your home. Stress tests report that selling or buying a home can wreak havoc in a placid lifestyle (essortment, 2009).”

Traditionally spring is the best time to sell your house. Sales peak in April and May and continue to stay relatively strong in June and July. It’s a good time to move because the weather is nice and it’s during summer recess from school.

Sources: http://www.essortment.com/career/readysellhome_seoi.htm

http://www.lendingtree.com/real-estate/advice/selling-a-home/the-best-time-to-sell-your-house/

http://www.forbes.com/2005/02/04/cx_sc_0204home.html

Looking to Purchase a Foreclosure?

2009-12-04T23:18:00.000-08:00

By Matthew Maillet

In the recent months, the foreclosed housing market has become more and more attractive for those looking to purchase discount real estate. Currently there are over 1.5 million homes for sales, and this number is expected to grow for the next six months. Foreclosed houses provide bargains for those looking to purchase assets. However, these bargains have both advantages and disadvantages. If you are looking to purchase a foreclosed house in the near future, there are many strategies that will help you in making the right purchasing decisions.
Glenn Kelman, CEO of the online discount housing broker Redfin, explained the current housing market best: “Everybody and their grandmas are trying to buy foreclosures.” Because of this, it is important to act rationally and not just get caught up in the frenzy. Cheap list prices attract many bids from potential buyers; thus, make sure to stay clear of homes that are no longer selling for a great bargain.
Two strategies that place the buyer at a greater advantage are the following: always contact lenders directly and make sure to get pre-approved from the lender you want to buy from. The better relationship you have with an asset manager, the greater chance you have with receiving insider information on great bargains as soon as they hit the market. This can put you in a better position from other buyers on the market.

Source 1
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Improving Real Estate Indicators

2009-12-04T23:10:00.000-08:00

Article by Matthew Maillet

October real estate statistics have shown that many Americans are taking advantage of the first time home buyer credit. The National Association of Realtors reported on December 1^st “an unprecedented ninth consecutive month of increases in the number of signed contracts.” While a signed contract does not promise a done deal home purchase (because it is not officially a closed sale,) this number is a clear indicator that many Americans are utilizing government incentives to purchase homes.

The Census Bureau has also reported some encouraging figures for the future of the real estate market. In the month of October, there was a dramatic 3.9% surge in private residential construction spending. Many analysts agree that these numbers may in fact weaken in future months; however, it is clear that the depressed prices of many homes as well as government incentives have encouraged many Americans to purchase their first home.

Many real estate analysts predict that the housing market could return to normal market conditions by mid-2010. While this hopeful estimate suggests that Americans are actively purchasing new homes, it also relies on several other indicators (unemployment percentage, etc.) Lawrence Yun, the head economist of the National Association of Realtors, explained that these indicators suggest a “broad wealth stabilization for the vast number of middle-class families.”

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Improvements for potential homeowners

2009-12-04T21:45:00.000-08:00

Posted by Pete Hill

Throughout the course of this recession, and the recovery of the recession, the housing market as a whole has still struggled. Although it may take a long time for the entire nation to return to its previous level, there is hope for some areas to respond quickly.

There has been a noticeable improvement in the price level of houses over the past six months. Rising home prices are a key ingredient to rebuilding the economy. Homeowners feel wealthier when their property appreciates in value and are more likely to spend money. Rising prices also help millions of homeowners who owe more to the bank than their homes are worth.

On the other side of the argument, the population who is interested in buying a house is in luck. Interest rates are at record lows. Housing prices in many parts of the country are still depressed. And you may be eligible for a generous tax break. President Obama signed legislation that provides a $6,500 tax credit for some current homeowners who buy another home. The law also extends the $8,000 tax credit for first-time home buyers.
Sales of new homes rose last month to the highest level in more than a year as strong activity in the U.S. South offset weakness in the rest of the country

Sources
http://www.usatoday.com/money/perfi/columnist/block/2009-11-23-home-tax-credit_N.htm
http://www.usatoday.com/money/economy/housing/2009-11-24-home-prices_N.htm http://www.usatoday.com/money/economy/housing/2009-11-25-new-home-sales_N.htm

Potential of a revived housing market

2009-12-04T18:19:00.001-08:00

Posted By: Pete Hill

With the economy pulling out of a recession, many people wonder if they can expect another crash, and if their housing market with be revived. Because the markets had made such a recovery this year, many experts wonder if it is too much too fast. With that being said, the economy is recovering but the housing market still faces challenges, and we are still losing jobs.

“Junk Mortgages” as they are called continue to get worse and still continue to ruin the housing market. Experts thought that when the recession hit, dissecting them and evaluating them would put an end to their harm, but they have not been resolved. These mortgages are a large reason as to why the housing market will not recover on the same level as the rest of the economy, and why so many foreclosures are happening.

The big question many people want to know the answer to is whether their town will be a boomtown again or not. A good climate and a robust economy tend to push housing prices up, but meanwhile an elastic housing supply keeps prices moderate. It is said that some of the “old, cold” cities and towns may never recover the way a warm climate city will recover.

Sources:
http://money.cnn.com/2009/11/25/pf/expert/market_crash.moneymag/index.htm
http://money.cnn.com/2009/11/30/real_estate/mortgage_lessons.fortune/index.htm
http://money.cnn.com/2009/11/25/real_estate/Glaeser_real_estate.moneymag/index.htm

Real Estate Market is Showing Positive Signs

2009-12-04T13:12:00.000-08:00

By: Sara Sindelar

The housing market hit a big increase for the month of October. National Association of Realtor's index increases 32%. There is a large factor of the first time buyers tax credit that home buyers are taking advantage of. There has been a straight nine month increase in signed contracts. The first home buyers tax credit can equal up to $8,000. The tax credit is worth 10% of the value of the home up to $8,000. It is only for first time home buyers who have not had a residence in three years and this must be their primary residence after purchase. The ending date was November 6, 2009 causing the major increase in October home sales.

Not only is there an increase in buying but a major decline in houses on the market for sale. Lawrence Yun, a National Realtor Association chief economist believes that real estate conditions will be back to normal by mid 2010. (CNN) Many areas are seeing this increase in home sales it is not just a positive country average. Central Ohio saw a 26% gain in October and Chicago area sales were up 33.3%. Along with the unemployment rate declining and real estate home sales increasing there is a lot more hope that there is an end to this recession. There is still a lot of work to be done and debt to be paid back but these signs give a positive that next Christmas may not be so dark.

http://money.cnn.com/2009/12/01/real_estate/October_sales_contracts/index.htm

http://www.dailystar.com.lb/article.asp?edition_id=10&categ_id=3&article_id=109092

http://www.housingzone.com/articleXml/LN1085165224.html

The Holiday Season Is't So Joyful For Real Estate

2009-12-03T08:25:00.001-08:00

By, Meredith Anderson

With the holidays right around the corner people seem to be surprisingly spending! According to the Federal Reserve on Wednesday the economy is starting to see a slight progress in general.With the holiday season here retailers are excited for the sales and seem to have quite positive expectations. However the commercial real estate market doesn't seem to be sharing the happy news.

Commercial real estate is still a barrier to our recovering economy. Although residential real estate has seen a small increase in sales due to lower prices, not many new homes are being built, bank are loaning less money, more layoffs are occurring, and essentially most people cannot afford new homes. However the real problem is with commercial real estate. There is very little new construction happening. Because of the increase in rent vacancy levels are rising. The Fed described the commercial real estate market as,"very weak and, in many cases, deteriorating." We can just hope that with the new year comes better news.

Sources:

http://www.bostonherald.com/business/real_estate/view.bg?articleid=1216345&srvc=business&position=recent
http://www.kansas.com/business/story/1081230.html
http://www.washingtonpost.com/wp-dyn/content/article/2009/12/02/AR2009120204029.html

Government Stepping in to Help Foreclosures

2009-12-02T13:56:00.000-08:00

By: Sara Sindelar

There are a rising number of foreclosures during this economic crisis. With unemployment rates rising and borrowing money is becoming more difficult foreclosures are increasing. The government has been stepping in to help with this growing problem. The government wants to have the loan providers to help these homeowners long term. They are going to physically go to these providers and help move along this slow transition to get homeowners back on track quickly. Banks are now going to be required to send progress reports two times a day for the month of December. Those that do not cooperate with the guidelines placed will face penalties.

The government wants to help the providers have a good line of communication with their borrowers. The homeowners are being placed in trial runs to see if they will be able to meet the new payment plans. Bankers are complaining that the borrowers are not turning in their paperwork which is slowing down the banker’s side of the process.

The Treasury realizes that this problem is two sided since homeowners are not handing in their paper work as well. This is going to be a work in progress for homeowners to stay away from foreclosures.

http://www.nuwireinvestor.com/articles/poll-shows-low-confidence-in-government-to-resolve-foreclosure-crisis-54165.aspx
http://money.cnn.com/2009/11/30/news/economy/permanent_modifications/index.htm
http://today.msnbc.msn.com/id/34243370/ns/today-today_technology

Home sales contracts soar in October

2009-12-01T11:41:00.000-08:00

POSTED BY: Sara Sindelar

By Les Christie, CNNMoney.com staff writer

NEW YORK (CNNMoney.com) -- Americans are inking a lot of deals to buy homes.

In October the National Association of Realtors recorded an unprecedented ninth consecutive month of increases in the number of signed contracts.

Although these are not closed sales, and some deals can fall through, signed contracts are a good indicator of where the housing market is headed.

Between September and October NAR's Pending Home Sales Index rose 3.7% to 114.1 from 110 in October. But the index is 31.8% higher than a year ago, when it was 86.6. That's the biggest year-over-year gain in the history of the index.

The PHSI is also at its highest level since March 2006, and the rise confounded expert expectations. A panel of industry analysts put together by Briefing.com had forecast a 1% drop in new contracts.

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Real Estate Market: Beginning to Increase

2009-12-01T07:38:00.000-08:00

Posted by Lindsey Connell

The real estate market has changed dramatically over the last few years and its stunted growth has put many people out of work. The problem is that with the economy today, people are less willing to spend their money which means houses aren’t being sold. What is surprising however, is the quick change in the real estate market. Sales of single family homes, townhouses, condos and co-ops rose by just over 10% in October, and were 24% above where they were a year before. Closed transactions also rose over 12% and specialists believe this jump is due to first time buyers trying to make their purchase before expiration of the $8,000 federal tax credit. Another reason for this is because house prices are very low and are now more affordable to more people. A study even showed that houses are now more affordable than they have been at any point in the last five years. The percentage of people able to afford houses on the market even rose from 56.1% to 62%. The cost of houses on the market today are now 8.2% less than they were a year ago, which will hopefully stimulate the economy and get more customers to purchase homes. We do have to keep in mind however, that if home purchases increase, the costs of the houses are sure to increase as well.

http://realtytimes.com/rtpages/20091201_realestateoutlook.htm

http://www.bankaholic.com/finance/homes-becoming-more-affordable/

http://www.usnews.com/money/personal-finance/real-estate/articles/2008/03/24/home-sales-increase-in-february.html

Real Estate Salaries

2009-11-30T15:16:00.000-08:00

It is very interesting to compare salaries among different jobs, how people get paid and how much they are getting paid. When thinking of a person who sells real estate, it may be shocking to know that the average real estate sales agent in 2006 made $35,715 base salary. With the way real estate agents get paid though, this is only their initial income as they also get paid on commission. The percentage the sales agent makes ranges on which company they are working for, whether they are private or public. It also depends on how many years the sales agent has been working. The longer someone has been in the business, the more they make.

Looking more broadly at real estate employee salaries, they can range greatly based on what you do specifically in the industry. Median salaries generally are at the following for these jobs. Residential Property Manager- $65,000; Residential Real Estate Agent- $54,000; Financial Analyst in a Real Estate Company- $60,000; Project Manager- $90,000; Mortgage Lender- $110,000. Clearly it makes a difference as to what role you play in real estate. Commission will also not affect all of these jobs as they are not all directly related to the sell. The actual agent will be the one getting that additional compensation.

By: Kelsey Hoffman

Sources:

http://www.careers-in-finance.com/resal.htm

http://swz.salary.com/salarywizard/layouthtmls/swzl_compresult_national_SM15000047.html

http://blogs.payscale.com/salarystories/2006/12/pay_rate_real_e.html

Real Estate Market Trends Don’t Matter Anymore

2009-11-30T14:42:00.000-08:00

This has been “conference” month, and we have attended our share of the retrospectives/prospectives of the economy and the real estate market, both nationally and locally. Most prominent of those conclaves was the Urban Land Institute’s national conference in San Francisco, which was held in early November. It was followed by a local version, called the Trends event, focusing mostly on San Diego.

The idea that trends matter is wrong. These conclaves ought to be titled Apocalypse Now. The nature of the economic beast attacking us requires serious thinking about real change. Not enough of that is going around.

The general consensus from each of the events is that we are in the midst of a long, slow recovery period. So, the message is to attempt to Thrive in Turbulent Times, the subtitle of the local ULI Trends conference.

Not all agree that is possible. “Thriving might be too strong a term,” suggested development consultant David Malmuth. “Maybe the better approach is adapting or surviving.”

Malmuth is correct. There is no point in mincing words. The economy and the real estate market have been in descent for four years, and there is every sign this will last for a couple more. Job losses and unemployment remain high. Discretionary spending is weak.

Click here to read more.

Posted by: Kelsey Hoffman

Real Estate Buying Online

2009-11-30T14:16:00.000-08:00

Posted By, Meredith Anderson

Visitors to www.costar.com Can Now View the Constant Flow of Deals, Property Searches and Listing Updates Occurring Throughout the U.S. Market
November 30, 2009: 04:23 PM ET

BETHESDA, Md., Nov. 30, 2009 (GLOBE NEWSWIRE) -- CoStar Group, Inc. (Nasdaq:CSGP), the number one provider of information, marketing and analytic services to the commercial real estate industry, today announced that, for the first time ever, online viewers can watch the constant flow of activity occurring throughout the commercial real estate industry on CoStar's website at www.costar.com.

The unique visual display captures the hundreds of thousands of listing updates, reported lease and sales transactions, and property searches taking place in CoStar's comprehensive database of commercial real estate information every day, showing where the activity is occurring as it happens.

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Home Is Where the Family Is

2009-11-28T16:43:00.000-08:00

By Lingxiao Li

Nowadays, even though mortgage rates have been dropped, many families are still struggle making their payments. Maybe it's the time to buy a smaller house since children all grew up and moved out. Stave (Steve Yoder is chief of The Wall Street Journal's San Francisco bureau) said "Home to this particular house, I mean, and this town. I ask because Karen and I are starting to talk of downsizing. That talk often leads us, naturally, to sub-Saharan Africa. And then I worry about Isaac's rootedness, now that he's off at college." The house is too big. We bought it for two adults, three boys, a pooch and a lizard. We're down to the adults, one boy and an aging dog. We seldom use 1,000 of our 2,500 square feet, but we still pay the mortgage and taxes and upkeep on those unused squares. This is the family's choice whether they should move out or not.The Bay Area is expensive, mainly because of the reasons they love it-it's a cultural center with natural beauty. And it's even more expensive if you're living in a house that's too big for you. "So, while I'll always have a place in my heart for the Bay Area, I wouldn't object to a move. You have to let go of childhood sometime." As Thomas Wolfe wrote, "the womb from which mankind emerged into the light, forever pulls one back – but … you can't go home again."

http://online.wsj.com/article/SB125884133113659291.html
http://online.wsj.com/article/SB125884133113659291.html#articleTabs%3Darticle
http://commerce.wsj.com/auth

U.S. Will Push Mortgage Firms to Reduce More Loan Payments

2009-11-28T16:05:00.000-08:00

By Lingxiao Li

The Obama administration on Monday plans to announce a campaign to pressure mortgage companies to reduce payments for many more troubled homeowners, as evidence mounts that a $75 billion taxpayer-financed effort aimed at stemming foreclosures is foundering. Even as lenders have in recent months accelerated the pace at which they are reducing mortgage payments for borrowers, a vast majority of loans modified through the program remain in a trial stage lasting up to five months, and only a tiny fraction have been made permanent. Some economists argued that the plan was built for last year’s problem — exotic mortgages whose payments increased — and not for the current menace of soaring joblessness. Lawyers who defend homeowners against foreclosure maintained that mortgage companies collect lucrative fees from long-term delinquency, undercutting their incentive to lower payments to affordable levels. Mr. Barr, who supervises the program, portrayed such deliberations as part of a constant process of assessment within the Treasury. He expressed confidence that the mortgage program had sufficient tools to deliver relief, characterizing the slow pace as reflecting a lack of follow-through, and not structural defects requiring a revamping.

http://www.nytimes.com/2009/11/29/business/economy/29modify.html?hp
http://topics.nytimes.com/your-money/loans/loan-modifications/index.html?inline=nyt-classifier
http://www.nytimes.com/2009/03/05/your-money/mortgages/05housingprimer.html

Paying Attention To Dubai Market

2009-11-28T15:38:00.000-08:00

By, Meredith Anderson

With the US market already unstable, the recent news of Dubai's state-owned investment arm-Dubai World and its reconstruction of debt has come to every ones attention. It shocked many how a city so far away could have such as substantial impact on the United States real estate. Dubai faces $59 billion dollars that it has no way of paying back.

Since the news was realized on Friday The Dow Jones U.S. Real Estate Index decreased by 2.9%. That is nearly twice the decline of broader U.S. market indexes. "Dubai may have to unload some very prestigious properties at distressed prices and this will drive the price of all commercial real estate lower," wrote Richard Bove, a banking analyst at Rochdale Securities in Lutz, Florida. Dubai World is an investment company that manages projects and business for the Dubai government. Dubai World is involved with many large real estate projects in the United States including CityCenter in Las Vegas and other Miami and New York resorts and hotels. "This downturn has had more of a global impact," said Tony Ciochetti, chairman of Massachusetts Institute of Technology's Center for Real Estate in Cambridge, Massachusetts."As I try to explain to my students, with a global economy, we're all attached at the hip financially in some way, shape or form," he added.

Sources:

http://www.walletpop.com/blog/2009/11/28/why-dubai-should-matter-to-you-u-s-real-estate-could-take-big/
http://online.wsj.com/article/SB10001424052748704498804574562232398218054.html
http://www.reuters.com/article/ousiv/idUSTRE5AQ4G620091127

Real estate: October home sales up in Hampton Roads

2009-11-24T11:05:00.000-08:00

Sales of Peninsula-area existing homes were up 24.2 percent in October, compared to October 2008.

At first blush, it sounds like a drastic improvement. But, real estate agent Bob Sullivan cautioned, October 2008 was a terrible month.

"October of last year is when it really started to go into the toilet," said Sullivan, president of the Virginia Peninsula Association of Realtors.

Nationally, existing-home sales were up 10.1 percent from September, and year-over-year sales were up 20.8 percent, according to the National Association of Realtors.

A rush to cash in on the up to $8,000 first-time home buyer tax credit before it expired Nov. 30 bolstered sales. Since then, legislators have extended and expanded it.

Now, a credit of up to $6,500 is available to qualifying existing homeowners. Both first-time and existing buyers have until April 30 to find a home.

That will keep the housing recovery momentum going, Sullivan said.

Extending the credit to existing homeowners will give them the incentive they need to find another home, Sullivan said.

"They might be able to recoup some of the money they would've lost because of the pricing coming down," he said.

October was the third consecutive month to show year-over-year gains in the number of sales on the Peninsula and Middle Peninsula, and November sales hold promise. Year-over-year pending sales are up 43.6 percent, according to a Real Estate Information Network report.

Click here to read more.

Posted by: Kelsey Hoffman

Dubai Effects US Real Estate

2009-11-24T08:09:00.000-08:00

Posted By, Meredith Anderson

By Elinor Comlay and Jonathan Stempel - Analysis
NEW YORK (Reuters) - Dubai's debt woes could further unhinge an already fragile U.S. commercial real estate, as it illustrates the importance of that tiny country to global investors in an increasingly interconnected world.

A state-owned investment conglomerate Dubai World, with $59 billion of liabilities, set off a global stock market selloff this week after it said it wants to restructure its debt, including at its property subsidiary Nakheel.

"This downturn has had more of a global impact," said Tony Ciochetti, chairman of Massachusetts Institute of Technology's Center for Real Estate in Cambridge, Massachusetts.

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Good News for the Housing Market

2009-11-23T20:00:00.000-08:00

By: Sara Sindelar

Finally there is some good news with the economy. Though unemployment may still be extremely low the stock market is making a great increase and real estate sales are starting to move in a positive direction. The National Association of Realtors estimated that sales are up 10.1% in October. This is the highest it has been since February 2007.

With the tax credits in place people are buying more houses. The government has extended the credit till April. The tax credit is a great option for first time home buyers to get a great deal if they can afford to buy a home in this time. This tax credit will hopefully continue to raise housing sales. As more positives occur in the economy will spiral into more positives for the United States economy.

Though we saw a big increase experts feel that there will be a decline before we see another big increase in the next year. We just need to hope that the next year brings good economic times.

http://www.reuters.com/article/ousivMolt/idUSTRE5AM34G20091123

http://www.google.com/hostednews/ap/article/ALeqM5hnu6sB3PemlhadTaizNLLJMgRONAD9C5FO180

http://money.cnn.com/2009/11/23/real_estate/existing_home_sales/index.htm

Better digs, less money

2009-11-23T19:13:00.000-08:00

Posted By: Sara Sindelar

After 19 years in business, Jane Hancock and her husband decided that relocating the Maritime Pacific Brewing Company, a microbrewery and restaurant in Seattle's Ballard District, was a gamble they were ready to make.

"It used to be sort of a sleepy sort of town -- we are right by the water here," says Hancock, whose business moved a few blocks away. "All of a sudden it became chi-chi."

When the recession hit, the Hancocks had to stay optimistic that they would still be able to fill seats in a bigger space. The relocation was pricey: They invested in reconstructing the restaurant, equipping a larger brewery, and shutting down for weeks.

"We had to take it on faith that we will continue to have a popular product, and that this downtime isn't going to hurt us," Hancock says about the decision.

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Commercial Real Estate Up But Still A Rocky Future

2009-11-19T17:39:00.000-08:00

By, Meredith Anderson

For the first time since 2007 the commercial real estate activity seemed positive. However this rise although slightly encouraging does not acknowledge the fact that the real estate market had a drastic fall just one year earlier.

The NAR, National Association of Realtors, showed that the brokerage activity rose from .09% to 102.4. However the index is still falling short of what it once was on a couple years ago.

Although there was somewhat encouraging news form the real estate market, credit availability remains a huge problem for the industry. The vacancy of both commercial and residential properties is predicted to reach record highs this year. "Credit availability needs to significantly rebound for any hope of a meaningful commercial recovery in 2010," NAR chief economist Lawrence Yun said. Its a great time to buy, but only if you have the money at hand.

Sources:

http://online.wsj.com/article/BT-CO-20091119-711360.html

http://www.reuters.com/article/GCA-Economy/idUSTRE5AI39920091119

http://www.bcbr.com/article.asp?id=103101

Realtors see sunnier 2010

2009-11-16T19:13:00.000-08:00

Posted By: Nicole Nelson

Scott Van Voorhis

OK, here’s one that is sure to get all the housing bears out there feeling downright surly again.

The National Association of Realtors is forecasting that prices will rise 4 percent in 2010 after hitting bottom in 2009.Home sales will also rise by 700,000 to 5.7 million, he argued.

Lawrence Yun, the association’s chief economist, made the sure- to- be-controversial predictions to the faithful assembled at NAR’s annual convention in San Diego last week.

He also noted foreclosures will top out in the first half of next year and the “fear factor’’ of falling prices that has put such a damper on the market will fade.

I guess you have to hand it to Yun, if nothing else, he’s not afraid to stick his head out there.

Still, given some of notoriety the real estate trade group earned for some of its predictions during the bubble years, this is risky territory.

Bidding Wars Resume

2009-11-16T09:23:00.000-08:00

A TWO-BEDROOM apartment on the Upper West Side is listed at $1.595 million and sells within two weeks after nine prospective buyers race to outbid one another, ultimately pushing the price to nearly $1.8 million.

Sound like the pandemonium of the last real estate boom, when anyone with a pulse could get a mortgage and it seemed as if prices could go only up?

It wasn’t. Try last month.

A year after the economy headed into a tailspin and at a time when most New Yorkers are still wondering whether real estate prices have hit bottom, brokers say that bidding wars are back. They are breaking out in all sectors of the market, from $400,000 one-bedrooms in Brooklyn Heights to $7 million apartments with grand park views at 15 Central Park West, and from stately Park Avenue prewar apartments to new condominiums in Williamsburg.

In many cases, the jousting buyers start and end below the asking price. But in others, multiple bidders are pushing prices well above list price. To add a confounding twist, many of the bids are being made by buyers willing and able to pay all cash.

Click to read more.

Posted by: Kelsey Hoffman

Foreclosures

2009-11-15T14:32:00.000-08:00

By Shawn Chandok

“The first night after she surrendered her house to foreclosure, Sheri West endured the darkness in her Hyundai sedan. She parked in her old driveway, with her flower-print dresses and hats piled in boxes on the back seat, and three cherished houseplants on the floor. She used her backyard as a restroom. The second night, she stayed with a friend, and so it continued for more than a year: Ms. West — mother of three grown children, grandmother to six and great-grandmother to one — passed months on the couches of friends and relatives, and in the front seat of her car.” This woman, Sheri West used to live in Cleveland, Ohio and is now at a homeless shelter. Even though the Fed claims the recession is over, in my opinion I don’t even they believe it. Our current unemployment rate is hitting 10% and there are no rapid actions being taken to reduce this. Within the last year, 10% of overall US homes have been foreclosed according to “Foreclosure to Homeless 2009” surveys. I believe the Fed is implementing a placebo effect, which assumes the country will improve if it is optimistic. However, optimism alone will not get us out of this pickle. Real estate foreclosures were due to inadequate mortgages given to customers who could never afford them. Today, one of the worst states hit by foreclosures is California. As we have all seen on television by now, there have cases of thousands of Californians simply leaving their front door keys in the mailbox and not looking back. California’s foreclosure rate was 43% in July 2008 , and it is expected to continue hovering around this rate. If the Fed doesn’t take quick action, we will have an exponential increase in homeless shelters and a lot more victims like Sheri West.

Source#1
Source#2
Source#3

Commercial Real Estate Outlook Darkens

2009-11-15T13:49:00.000-08:00

Posted by: Scott Graulich

Even as the residential real estate market begins to stabilize, albeit at prices far below peal levels and with crucial help from a homebuyers tax credit, economists and bankers are bracing for the fall-out from a dramatic bust in the commercial real estate sector. In the Mountain West, the pain is being felt in the resort market and in some over-built urban areas, such as Idaho’s Treasure Valley, though Denver and many of the fast-growing small cities in the region may avoid the worst.

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Hope for the New Home Buyers Tax Credit

2009-11-14T17:31:00.000-08:00

By: Sara Sindelar

The National Association of Realtor’s predicts that home sales are going to increase by 15% due to the new tax credit for home buyers. This tax credit allows first time home buyers a credit up to $8,000 and those who own already up to $6,500 when they buy a new house. Though there are qualifications like income level and time limit to qualify for this credit. First time buyers are the prime market since they are making a large percentage of purchases. They are taking advantage of all the savings they can make between low prices, low mortgage rates and now a tax credit. Realtors are over excited about the increase that is predicted now that the credit is taking place. Sources believe that people have been waiting to buy until the house prices are at the lowest. This tax credit will get those looking to buy to buy and boost sales.

Even with these hard economic times people need to take advantage of it if you can. Buying a home for the first time is a perfect example. Increasing home sales will help stimulate the economy, unemployment may still remain an issue but we need to start somewhere. This is a time to take advantage if you financially can do so. There are so many opportunities to save and this tax credit is a prime example.

http://www.latimes.com/business/la-fi-perfin8-2009nov08,0,838088.column

http://www.biggerpockets.com/renewsblog/2009/11/13/real-estate-investors-profit-home-buyers-tax-credit-extension/

http://www.marketwatch.com/story/realtors-predict-15-rise-in-home-sales-next-year-2009-11-13?link=kiosk

City Finalizes Largest County Real Estate Transaction

2009-11-14T10:28:00.000-08:00

Posted By, Meredith Anderson

By Angie Favot
ALLEN PARK –– The city has finalized what closing attorneys say is the largest real estate transaction in Wayne County this year.On Thursday afternoon, the city took control of a 104-acre property off Southfield Road just south of I-94 that is home to Unity Studios and the Lifton Institute for Media Skills.“It’s kind of like an elephant off your back,” Mayor Gary Burtka said. “This is 16 months of work that finally comes to fruition.”To pay for the property, the city sold $25.3 million in long-term general obligation bonds and $3 million in Wayne County-issued recovery zone bonds on Oct. 27. The bonds received an “A” credit rating and sold in less than one minute.PNC Financial Services Group Inc. purchased the bonds. PNC is a financial services organization that covers retail, business and corporate markets. The PNC Equipment Finance unit was merged with National City Commercial Capital Co. this month.

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Cracks in the Foundation of the Fed's Housing Fix

2009-11-14T09:45:00.000-08:00

Posted By: Sara Sindelar

We all know the government can't run anything.

It's not good at running the nation's retirement plan. Its passenger rail system seems to be perennially in trouble. If the post office were doing such a bang up job, how then would one explain the rise of FedEx and United Parcel Service?

And when it comes to creating efficient health care, let's just say "hoping for a miracle" is not a tried-and-true business plan.

Until recently, the same was true when it came to the housing and mortgage markets. Missteps by Fannie Mae, Freddie Mac, Congress and the Federal Reserve helped create the mortgage bubble.

But during the last 18 months, a funny thing happened. The government accomplished what it set out to do. Uncle Sam's extraordinary efforts to prop up the financial markets, the mortgage market in particular, pretty much have worked. Housing prices in most places have stabilized. Home loans are being made to qualified borrowers, not at the bubble-era pace, but at a healthy rate that has deals getting done.

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Are Houses Really Finally Cheap?

2009-11-12T11:19:00.000-08:00

By Lingxiao Li

A handful of early signs suggest America’s housing market is on the mend. Construction starts and new house sales were up nicely in June. Prices rose from April to May, the first monthly increase in nearly three years.

Time to buy, then? Perhaps, but be cautious about how and where you shop.

Some experts are no evangelist for the financial merits of homeownership. Two years ago they argued here that house prices in the U.S. had grown so bloated that renting had become a better deal than owning. An expert said:" Since then, prices have plunged 30%, or about 36% after inflation. Nationally, they still seem too high, as I’ll show in a moment, and May’s gain could prove illusory -- SmartMoney’s Aleksandra Todorova points out that it disappears after adjusting for seasonality, and that the numbers probably got a temporary boost from government freezes on foreclosure proceedings.

Still, a handful of major markets now look affordable, and all of them are closer to sane.

http://customsites.yahoo.com/financiallyfit/finance/article-107466-2179-0-are-houses-finally-cheap/?ywaad=ad0035
http://finance.yahoo.com/real-estate/article/107458/high-end-homes-frozen-out-of-budding-housing-rebound.html?mod=realestate-buy

Obama extends, expands homebuyer tax credit

2009-11-12T11:04:00.000-08:00

By Lisa Scherzer
Post by Lingxiao Li

On the fence about buying a new home? Some government aid is on the way to help spur sales.

Nov. 6 President Barack Obama signed a bill that extends the $8,000 first-time homebuyer credit and expands it to include some existing homeowners.

Under the expanded program, homeowners are eligible for a tax credit of up to $6,500 if they purchase a new home. To qualify, current owners will need to have lived in their prior residence for five consecutive years out of the past eight years. The credit would apply to home purchases under contract by April 30, 2010, as long as they close by June 30.

First-time buyers (and those who haven’t owned a home in the last three years) continue to be eligible for up to $8,000. Read more..

Investors Finding Deals in Real Estate Market

2009-11-12T10:39:00.000-08:00

Posted by: Christina Dove

Although the housing market has taken some criticism and has struggled recently in the ongoing economic crisis, there is a glimmer of hope for some real estate investors. Many investors who have the money are able to take advantage of the slow economy's low prices and are getting great deals on houses. Especially with so many people foreclosing their homes and turning them over to the bank, it creates a lot of opportunities for people looking to buy a home or just a place to invest their money.

Housing prices are at an all time low and are attracting several types of people - those looking to buy their first home, those looking to relocate and those looking to invest their money and have a payoff in the future when the market returns to its normal conditions. Another benefit of entering the real estate market at this time is for the wide selection of homes that are on the market, with so many people getting out of their homes because they cannot afford them, it really opens up the doors for people with a little extra cash to get some great discounts on homes.

One issue in the housing market is that investors believe that the banks are being too leinent on people who cannot afford their homes. The banks are continuing to give out questionable loans to avoid foreclosures, but this is not helping the economy or the people who are living in these homes, strapped for cash. In order for our economy to get back on its feet, we will have to take stronger actions on people living in homes that they cannot afford and open them up to investors who have the fund to live in that caliber of homes. Therefore, in order for the real estate market to prosper and investors to get the most of their money and take advantage of the low housing prices, banks must be more aggressive in getting people to pay for their mortgages.

Sources:

http://money.cnn.com/news/newsfeeds/articles/prnewswire/200911110100PR_NEWS_USPR_____LA09203.htm

http://www.dsnews.com/articles/low-cost-foreclosures-attract-investors-2009-11-12

http://blogs.wsj.com/developments/2009/11/12/big-opportunities-for-real-estate-investors-reit-execs-skeptical/

In commercial real estate market, buyers and sellers play the waiting game

2009-11-12T10:35:00.001-08:00

Posted by: Andrew Pia

Written by: Sheryl Nash

What's most striking about the commercial real estate market is how quiet it is.

"It's like a storm is brewing and it has everyone standing on the sidelines," says Bob Spratt, president of commercial real estate firm Hill Partners Inc.

And that near silence is expected to continue until 2010, when the market will likely reach its bottom, with values declining 40% to 50% off 2007 market peaks, according to the Emerging Trends in Real Estate 2010 Report recently released by PricewaterhouseCoopers LLP and the Urban Land Institute.

"Commercial real estate is lagging all asset sectors and it will come back slowly, it will be a long slog," says Jonathan Miller, author of the report and a consultant with PricewaterhouseCoopers.

What will be the tell-tale signs that at last the market has scraped the bottom? "When we start to see more and more institutional investors dipping more than just a toe in the water, which indicates the desire to start placing significant real estate bets," says Gregg Genovese, president of the Securities Division at Thompson National Properties.

Click here to read more about this article

Real Estate Career

2009-11-12T10:15:00.001-08:00

By Ka Lee Angel Lee

Real estate jobs are getting more popular and competitive. Everybody needs a place to live, to work, and if one is smart, investments in real estate can earn you a fortune.

Real estate jobs endow freedom, time flexibility, challenges and juicy rewards. If you are really interested, you can start by enrolling in some real estate courses in schools. There are licensing requirements for entry of the real estate job market. Therefore, some pre-licensing educational courses can definitely help you to get through more easily. Then you will start from the real life training and get your way into bigger firms.

There is a wide range of real estate jobs to choose from, from residential brokerage to commercial ones, from industrial and office brokerage to real estate appraising. It is important to find out which direction you want to aim at and your effort will be paid off.

Sources:

http://www.restatecareer.com/

http://www.realtor.org/REALTORorg.nsf/pages/careers

http://www.business.uc.edu/realestate/careerpaths

$8,000 homebuyers tax credit extended

2009-11-12T08:58:00.000-08:00

Posted By- Anshu Dixit
By Les Christie, CNNMoney.com staff writer

NEW YORK (CNNMoney.com) -- President Obama signed an extension and expansion of the first-time homebuyers tax credit on Friday.

The $8,000 credit was scheduled to lapse on Dec. 1 but will now be in effect through the end of June. Homebuyers must sign a contract before April 30 and close by June 30. The income limits were also raised: Single buyers can now earn up to $125,000 and still get the full credit while a married couple can earn $225,000.

The bill also made more homeowners eligible to claim the credit on their taxes. First-time buyers -- those who have not owned a home in the past three years -- still qualify for an $8,000 rebate. But now people who want to trade up can also qualify. Those who have owned and occupied a residence for at least five years out of the past eight can claim a $6,500 tax credit if they close on a purchase by the end of June.

Click here to read more...

Mortgage Changes

2009-11-11T19:48:00.000-08:00

Posted By Pete Hill

IN recent years, state and local governments have enacted laws to combat discrimination against lesbian, gay, bisexual or transgendered people seeking mortgages and housing. Now the federal government is poised to do the same with regulations that would cover loans backed by the Federal Housing Administration.

The new initiative was welcomed by legal advocates, who say that so far, laws have largely failed to address the issue adequately. Some in the mortgage industry, meanwhile, contend that such discrimination is rare.

However, overall mortgages are getting better. Fewer people are underwater on their mortgages, further evidence that the real estate free-fall may be slowing. That is good news because it should help reduce the number of homeowners losing their homes to foreclosure. Being underwater is one of the two factors that lead to foreclosure, the other being, of course, not having enough income to make the monthly payments

In addition to fewer underwater mortgages, prices of homes have been on the rise for the second straight quarter. Although they are still down drastically from a year ago, they are back on the rise. a shrinking supply of unsold homes suggests the housing market is getting closer to price stabilization. But a steady stream of financially qualified buyers is necessary to keep the fledgling housing recovery going.

Sources:

http://www.nytimes.com/2009/11/08/realestate/08mort.html?_r=1&ref=realestate

http://money.cnn.com/2009/11/06/real_estate/underwater_mortgages_decrease/index.htm

http://money.cnn.com/2009/11/10/real_estate/latest_home_prices/index.htm

Businesses are downsizing their Real Estate

2009-11-11T19:26:00.000-08:00

Posted by: Scarlett Lu

Businesses are moving into smaller office because their staff is shrinking and more workers telecommute. When a company decides to downsize the reasons are obvious, it may be that they have no other choice; it’s either they downsize or go out of business. They may go as far as eliminating employees. Another trend that arise is closing down properties and letting employees work from home. Owners are saving money on office equipment such as furniture and other expenses. By letting employees work from home, or by using independent contractors who don’t work on-site. Owners do not have to provide space at the office for them. Space equals money. The CEO of Edge Electronics; has turned seven salespeople in Texas into telecommuters. Telecommuting has enabled some businesses to close down their offices and expand their headquarter space. Workers are working from homes and they save time and money without commuting. Employees have the opportunity to work offsite. They can still accomplish work at home.
It is extraordinarily expensive to run a small business especially in the New York area. Since every employee has a computer, phone, internet connection it is convenient to work from home. The internet has made it easy for people to keep in touch with one another.

http://www.google.com/hostednews/ap/article/ALeqM5h9oAwWv3WYNik27YYKef62OoO-mAD9BTJA7O0
http://abcnews.go.com/Business/wireStory?id=9057594
http://www.helium.com/items/245133-how-to-downsize-business-and-retain-dignity-for-everyone

How To Improve The Value Of A Home

2009-11-11T17:11:00.000-08:00

Posted by Lindsey Connell

There are many ways for someone to increase the value of their home and a few of them are defined in Remodeling Magazine. The first way is to have the siding replaced on the house. Fiber cement and foam-backed vinyl are the two most valuable siding materials and they can net 87% ROI. A second way to increase home value is to have window replacements of wood or vinyl because it can save on heating and cooling bills. Another way is to remodel the bathroom but it is important to note that those who added bathrooms lost value while those who remodeled their bathrooms raised the value. Also, you could do a major kitchen remodel because the kitchen is very frequently used and the bigger, the better. Another way is to add a deck to the house because with the poor economy, people tend to stay home more in order to spend less money so a deck is attractive to customers. Besides this, homeowners should create an attic bedroom because guest beds usually appear valuable to customers. A final addition is to remodel the basement because it can create a 73% ROI. Because large renovations, there are many simple steps to enhance the appearance of a home that will help sell it. These steps include repainting the exterior and interior, mowing the lawn/ cutting weeds, and add new curtains and light bulbs to brighten the rooms.

http://www.bankrate.com/brm/news/real-estate/BuyerGuide2004/increase-resale1.asp

http://realestate.yahoo.com/promo/10-ways-to-increase-the-value-of-your-home.html

http://www.wikihow.com/Inexpensively-Increase-the-Value-of-Your-Home

Real Estate Outlook: Pending Sales Rise

2009-11-11T16:40:00.000-08:00

Posted by Lindsey Connell

A record jump in pending home sales -- pointing to higher numbers of closed transactions in the next two to three months -- tops the housing economic news this week.

Pending sales rose by 6.1 percent nationwide during the month of September, pushed in part by consumer concerns that the $8,000 tax credit might expire at the end of the month - and we now know that won't happen.

The pending home sale index, compiled monthly by the National Association of Realtors, was up 21 percent higher this September compared with September of 2008. That's the biggest year-over-year increase in the history of the index, dating back to 2001.

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How Do You Really Know What Your Home is Worth?

2009-11-11T14:26:00.000-08:00

Post by David Held

The first step in the process of selling your home is getting an appraisal, an estimate of what your house is worth. This is the key step in determining what to list your home for. The appraised value of your home most likely will not be the same as the “market value” for your home. Depending on the economy the appraised value might be more than the market value or some times less (not in your favor).

Ten Appraisal Tips are:

1. Continuously research the value of your home and homes in your neighborhood; pay attention to foreclosures in your area; they will drive down the value of your home.
2. Since appraisers use "comps" (comparable market sales) of local properties sold within the last six months to value your home, make sure to work with a great loan officer who will leverage their knowledge to research comps in your area, before ordering the appraisal.
3. If you use your own appraiser, research them first and ask your lender to cross check them for any potential issues that may delay the process. Great loan officers will always confirm your appraiser's credentials.
4. Direct your loan officer to work with local, experienced appraisal companies. Local appraisers have a deeper knowledge of the surrounding neighborhood and will likely be more readily available for the home inspection, to speed your appraisal process.
5. The appraisal report is yours to keep. Find out in advance who pays for the appraisal--many times appraisal fees are the homeowner's responsibility and have to be paid up front.
6. New lending regulations require two appraisals in some situations--ask at the beginning whether you'll need one or two.
7. Commit to your lender before committing to an appraisal. Being comfortable working with your loan officer is imperative. They often will be the liaison between you and the appraisal company.
8. Make sure any major repairs are completed before moving forward with your refinance. Structural damages drive your home value down and jeopardize the approval process for today's popular government-backed FHA loans.
9. Don't overestimate the value of making cosmetic home improvements. The expense is rarely justified because in the appraisal world, only improvements that add square footage will significantly increase home value.
10. Rely on market value rather than tax assessments for a realistic appraisal value--in today's market, tax value and current market value may differ widely, but your lender can only go by appraisal value.

Sources #1, #2, #3

A Cheap Nest for Fledgling Firms

2009-11-11T09:05:00.000-08:00

Post by David Held
By ALISON GREGOR

When Lindsay Napor expanded her Manhattan-based development company earlier this year — moving out of free work space provided by an investor — she turned to the most logical place for the company’s new offices: New Jersey.

“We were planning on moving out of New York,” Ms. Napor said, “because to go from nothing to standard New York rents would have been a nonstarter for us.”

The company, called Ecological, which specializes in sustainable construction, had four employees, but planned to add 35 to 40 people in two years. “We were actually looking at space in Newark, because it was easy to get to for most people, and much cheaper,” she said.

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Only 1 in 20 Americans plan to buy first home in 2010

2009-11-11T09:00:00.000-08:00

By: Zachary Pienkowski

In an attempt to jump start the residential housing market, the government created a program in order to encourage first time home buyers by giving them up to an $8,000 tax credit. Success of this program was undeniable, so in fear that when the program ended in November that home sales would sharply drop, the government decided to extend the program at least into 2010. However, recent reports show that despite the extended tax credit, only 1 in 20 Americans below the ages of 34 plan to buy a new home. Most home buyers that plan to buy now said that the main reason they want to purchase a home now is because the prices are so low they can not imagine them falling any further, and did not want to wait and have to pay higher prices. Many people have been hesitant to jump into the market and purchase a home because they are trying to keep their savings in case of emergencies instead of putting down everything they have in a down payment. Many home owners who have recently refinanced their mortgage due to attractive rates have used the money to pay bills and cover expenses instead of using the savings for retirement. Investments and retirement savings have taken a backseat in many families to keeping up with bills and paying down debt due to a large increase in layoffs and pay cuts.

Sources:

http://finance.yahoo.com/news/5-pct-of-Americans-plan-to-apf-2743716756.html?x=0
http://finance.yahoo.com/news/World-Bank-warns-unemployment-apf-838983808.html?x=0
http://money.cnn.com/2009/11/10/news/economy/too.many.houses.fortune/index.htm

Affordable Prices Draw Investors to Real Estate

2009-11-11T06:34:00.000-08:00

Posted by: Christina Dove

Affordable prices and foreclosures are attracting investors to the housing markets today, and the number of consumers interested in investing in real estate has doubled since March 2009, according to the new Move.com Homeownership Survey released today. Low prices and foreclosure bargains have also become the most important reasons motivating buyers today to purchase a home.

According to the Move.com survey, one out of eight (12.1%) homebuyers today plan to purchase a home as an investment property, compared to 5.6 percent seven months ago(1). Of those interested in buying a home for investment, 15.8 percent were men and 8.1 percent were women.

Foreclosure buyers, accounting for 25.3 percent of consumers interested in purchasing a home, are a major source of potential investment activity for today’s housing market. Forty-two percent (42%) of potential foreclosure buyers regard their purchases as investments, while 57.6 percent plan to live in the foreclosed home themselves. Foreclosure investors, according to the Move.com survey, intend to convert their foreclosures into rentals (13.2%), fix them up for re-sale (11.3%), or house a family member until the home can be sold at a profit (17.4%). Of the forty-two percent interested in purchasing a foreclosure as an investment, survey respondents ages 35 to 49 (52.6%) were by far the largest demographic.

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The Decline and Fall of the Bachelor Pad

2009-11-10T19:24:00.000-08:00

Posted By Pete Hill

BACHELORS always seemed to have it made. With only themselves to support, they could flash their cash and trick out their apartments in such a way that James Bond himself would feel at home shaking himself a martini in their ultra-cool, chick-magnet pads.

Then the recession thundered in, and suddenly young men found themselves one of the hardest hit demographic segments.
In 2008, the unemployment rate for men ages 20 to 34 in New York State was 7.4 percent. The countrywide average was 7.7 percent, while the state average for women in the same age range was 6.1 percent, according to the United States Bureau of Labor Statistics. (Numbers for 2009 are not yet available.)
Bachelors have been walloped, but many are taking their lumps and moving on.

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Housing plan reaches 1 in 5 borrowers

2009-11-10T11:14:00.000-08:00

By : Zachary Pienkowski

WASHINGTON – After a slow start, the Obama administration's mortgage relief program has reached one in five eligible homeowners, a government report says.

As of the end of October, more than 650,000 borrowers, or 20 percent of those eligible, have signed up for trials lasting up to five months, the Treasury Department said Tuesday. The modifications reduce monthly payments to more affordable levels.

Launched with great fanfare in March, the plan got off to a weak start, but now nearly 920,000 loan modification offers have been sent to more than 3.2 million eligible homeowners. That works out to 29 percent, up from 15 percent at the end of July.

In California, about 130,000 homeowners have been enrolled in the "Making Home Affordable" loan modification plan, which President Barack Obama unveiled in February. That works out to about 19 percent of the state's homeowners who were either two payments behind or in foreclosure at the end of last month, according to Treasury Department data.

"We are reaching all the places that really got decimated," said Michael Barr, an assistant Treasury secretary. "The other basic story is we're reaching borrowers at a scale that has not been done by any other modification program."

Two other hard-hit states, Arizona and Nevada had similar rates of assistance as California, at 22 percent and 18 percent respectively. Florida, however, was much lower, at 12 percent, possibly because of high numbers of investor-owned properties that don't qualify for the program.

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Fed’s Lockhart Says Commercial Real Estate May Weaken Recovery

2009-11-10T09:10:00.001-08:00

Posted by: Andrew Pia

Written by: Steve Matthews

Nov. 10 (Bloomberg) -- Federal Reserve Bank of Atlanta President Dennis Lockhart said the economy will probably recover slowly from the deepest recession since the 1930s because of rising bank losses, especially in commercial real estate.

“Now that growth has resumed, the overall objective of economic policy should be to bring about a durable recovery and an environment that reduces unemployment as quickly as possible while containing inflationary pressures,” Lockhart said today in a speech in Atlanta. “The process of achieving this objective will necessarily involve judicious removal of government supports and the normalization of monetary policy.”

Policy makers have expressed concern that rising commercial real estate loan defaults could pose a risk to U.S. banks and hinder a recovery. All 12 Fed district banks reported a weak or declining commercial real estate market, the central bank said Oct. 21 in its Beige Book business survey.

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Fed’s Lockhart Says Commercial Real Estate May Weaken Recovery

2009-11-10T09:10:00.000-08:00

Posted by Ka Lee Angel Lee

By Steve Matthews

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Best Places to Live 2009

2009-11-09T18:31:00.001-08:00

Article by Luke Millins

Post by Shawn Chandok

With the decade winding to a close, Americans have grown increasingly reluctant to gas up their moving vans. Last year, the Census Bureau's national mover rate—which represents the percentage of Americans 1 year and older who moved within the past year—hit its lowest level since 1948, when the bureau began tracking the data. And who can blame us? In the face of a terrifying banking crisis, a historic housing crash, and a grueling recession, relocating to a new city isn't exactly on the to-do list. But despite the uncertain economy, the nation's diverse topography presents an enviable menu of great places to find work, retire, or just change your scene.

In selecting our Best Places to Live for 2009, U.S. News took a thrift-conscious approach: We looked for affordable communities that have strong economies and plenty of fun things to do. The cities we selected are as distinct as America itself—ranging from a quaint suburb to a live-music mecca. But whether you prefer hiking through the Rocky Mountains, pulling a fish out of the Atlantic Ocean, or grilling hot dogs at a college football tailgate, here are 10 places that will fill up your daybook without emptying your wallet.

1. Albuquerque, New Mexico
Along the banks of the Rio Grande, with the Sandia Mountains in the background, is the beautiful city of Albuquerque, N.M. The sunny climate and endless landscape have long drawn writers, poets, and artists to this spot, which includes an unconventional mix of American Indian, Hispanic, and Anglo cultures. But it's not just freethinkers who drift to this Southwestern city of 511,000. Kirtland Air Force Base, Sandia National Laboratories, and Intel Corp. have helped develop the area into a manufacturing and research hub. They provide a stable anchor for the local economy.

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Xinyuan Real Estate Co., Ltd. Announces Third Quarter 2009 Financial Results

2009-11-09T06:23:00.000-08:00

Posted by Scarlett Lu

BEIJING, Nov. 9 /PRNewswire-Asia/ -- Xinyuan Real Estate Co., Ltd. ("Xinyuan" or "the Company") (NYSE: XIN), a residential real estate developer with a focus on high growth, strategic Tier II cities in China, today announced its unaudited financial results for the third quarter ended September 30, 2009.

Highlights for the Third Quarter 2009
-- Total revenues were US$128.2 million, compared to US$91.8 million in
the second quarter of 2009 and US$83.0 million for the same period of
2008.
-- Contract sales totaled US$159.0 million in the third quarter of 2009
versus US$100.5 million in the second quarter of 2009 and $69.7 million
for the third quarter of 2008.
-- Total gross floor area ("GFA") sales were 184,500 square meters,
compared to 128,500 square meters in the second quarter of 2009 and
93,900 square meters for the same period of 2008.
-- Selling, General, and Administrative ("SG&A") expenses as a percent of
total revenue declined to 7.0% compared to 8.1% in the second quarter
of 2009 and 16.3% for the third quarter of 2008.
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Do you Want to Save you House ...Just try...

2009-11-05T18:16:00.000-08:00

By- Anshu Dixit

Foreclosure is a term many people may have heard of yet are unsure as to what the term means exactly. A foreclosure is something which affects homeowners who have a mortgage or lien on their home and do not own the house outright. There are a few things which homeowners should be aware of with regard to foreclosure in order to prevent this from happening to them. First, what is Foreclosure? Foreclosure is when a lender who currently holds a mortgage on one's home can come in and repossess the home due to a number of reasons but mainly for nonpayment of a mortgage. For those individuals whose home is less valuable than their current loan balance, they may also owe a deficiency judgment as a result thereof. In short you would not be the homeowner, your lender will.

A homeowner who is having problem with his/her mortgage payment should get the help, such as “Talk to a foreclosure avoidance counselor”, “Talk to your lender”, “Find state and local foreclosure resources”, “Contact HOPE NOW”. These contacts can help you a lot from foreclosure. If you will be careful as a home owner from the beginning, you would be able to deal with this foreclosure problem. There are some things that you, as a homeowner should do. Just do not ignore the problem. Do not ignore the letter from your lender, if you think you are having problem making your payments, call or write to your lender. Explain your situation; provide them your financial information. Stay In your home for now, because by leaving your home now you may not qualify for the assistance if you abandon your property.

If you end up in the situation of foreclosure there are some alternatives for you. Such as, Special Forbearance, which means your lender many be able to arrange a repayment plan based on your financial situation. Mortgage Modification, in which you may be able to refinance the debt and or extend the term of your mortgage loan. And there are many other alternatives to avoid foreclosure such as, Partial claim, pre-foreclosure sale, Deed-in-lieu of foreclosure. There are some situations where you can or cannot qualify for these alternatives. And to know you should contact your lender. People have to be more careful because losing your shelter is not good in short term and in long term as well in terms of credit.

Source 1

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Home sales contracts rise for 8th straight month

2009-11-05T17:05:00.000-08:00

By Anshu Dixit

By Les Christie, CNNMoney.com staff writer

NEW YORK (CNNMoney.com) -- The number of signed sales contracts to buy homes rose in September for the eighth straight month, according to a real estate industry report released Monday.

The September Pending Home Sales Index from the National Association of Realtors (NAR) spiked 6.1% to 110.1, consolidating a 6.4% gain in August. It was the index's highest level since December 2006, when it stood at 112.8.

The leap was far better than expected. A panel of analysts surveyed by Briefing.com had forecast a 1.2% rise.

Analysts, including Lawrence Yun, NAR's chief economist, have traced much of the improvement to the government's first-time homebuyer tax credit program, which gives an up to $8,000 tax break to new homebuyers.

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2010: Worst Time to Buy a House

2009-11-05T15:54:00.000-08:00

Posted by: Christina Dove

According to a study done by PriceWaterHouseCoopers, U.S. commercial property prices are likely to hit bottom next year after falling more than 40 percent from their 2007 peaks. This does not have a very good outlook for 2010 home buyers, who are going to find it very difficult to get a loan or any type of credit from banks. In addition, this is going to put a huge strain on those who are struggling to maintain ownership of their home and are falling behind on payments.

The housing boom of 2006-2007 is to blame for this housing market catastrophe. Too many people were getting loans that they were not able to afford and living in houses that were way above their means. Just because the bank allowed them to get a loan for that much, does not mean it was the most financially wise thing to do. Now these people are paying the price as the value of their homes is decreasing as we speak. People should have known that is was not wise to be paying for a mortgage that was worth well above what their house was worth.

The only good thing about this housing crisis is that those with the cash are able to buy some great properties at an all-time low price. Some investors are taking advantage of those who have had to foreclose their homes and those homes that have been repossessed by the bank and resold. However, this is not the case for many people who are strapped for extra cash in this economic crisis and are finding it hard to even afford the property that they are already living in. The housing market will always be going through ups and downs, but it seems that 2010 will still be a down year for the housing market and people are going to have a lot of trouble selling their homes for what they paid for them.

Sources:

http://www.bloomberg.com/apps/news?pid=20601103&sid=aHljg1MMC.MU

http://moneycentral.msn.com/content/Banking/Homebuyingguide/P37627.asp

http://finance.yahoo.com/real-estate/article/104278/Best-and-Worst-Places-to-Buy-a-House

Foreclosures: Worst-hit cities

2009-11-05T11:18:00.000-08:00

By Julianne Pepitone

Posted By Ahmed Al-Salem

NEW YORK (CNNMoney.com) -- While foreclosure rates are easing in some of the hardest-hit cities, the crisis is beginning to expand into new metro areas.

On Wednesday, RealtyTrac released its list of cities with the biggest foreclosure problems during the third quarter. As expected, towns in California, Florida and Nevada dominated the top 10, with Las Vegas taking the top spot with a rate of 1 in 20 homes. That's a 53% increase over the third quarter 2008.

But there was a bright spot: Half of the cities in the top 10 showed year-over-year declines in their foreclosure rates, and 60% showed improvement compared with the second quarter.

For example, second place Merced, Calif., saw foreclosures fall by 11% from last year and 13% from last quarter, to 1 out of every 27 homes. And Stockton, Calif., slipped to No. 4 from No. 2 last quarter. The city, which is 80 miles east of San Francisco, had ranked highest for all of 2008.

"We're not sure if that will be a one-time thing or a true continued trend, but it's one of the first positive signs we've seen," said Rick Sharga, a senior vice president at RealtyTrac.

Read On

Private Property

2009-11-05T11:13:00.000-08:00

By: Scott Graulich

Owning private property (real estate) by the individual is the key to freedom and liberty in America. It is a foundation of capitalism and a driving force to achieving the American dream. I think it is one of the key reasons for the failure of the Soviet Union where communism and Marxist theories destroyed the economy. Marxism believes that private property is the means by which the upper class oppress the middle and lower class workers. Marx believed that if private property ownership were abolished, oppression of the people would cease to exist by the wealthy.

Well this foolish theory did not pan out too well. It is private property rights that are quite literally the foundations of America's business successes and entrepreneurship. There is a sense of human excitement and satisfaction that accompanies the acquisition and management of real estate properties. If that ability ceased to exist, I believe America would fail.

Source 1
Source 2
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Real Estate Facts

2009-11-05T08:50:00.000-08:00

by Ka Lee Angel Lee

Real estate experience is essential for everyone because it is one of the most promising investments. It is important for us to get hold of investing and property management background. In the past 10 years, real estate financings have been increasingly available to the public through Real Estate Investment Trusts. The trusts are similar to mutual funds and hold property. Not only they are good opportunities to get involved in real estate investments, they also create a job market for estate analysts. To be successful in real estate investments, we need to sharpen our negotiating skills in order to achieve a win-win contract deal. Other than that, technology boom is happening in real estate too. We should use this advantage to get more information about the market and save a lot of searching and information costs.

Source1

Source2

Source3

Availablity and cost of bank credit to impact real estate

2009-11-04T14:58:00.000-08:00

Posted by Christina Dove

While the recent quarterly review of the monetary policy has kept the policy rates unchanged, the availability and also cost of bank credit are
likely to impact one sector;commercial real estate (CRE). As equities and real estate are vulnerable to asset bubbles, bank lending to these segments is under close regulatory scrutiny.

This explains the RBI move to increase provisioning requirements for CRE lending to 1% as against 0.4% for other categories. RBI attributes this measure to "large increase in credit to commercial real estate over the last one year and the extent of restructured advances in this sector".

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The Most Expensive Residential Area in Manhattan

2009-11-04T08:04:00.000-08:00

Post by David Held

Many people have different opinions on where the most expensive residential area in Manhattan is; however, some sources have concluded that the Upper East Side is the winner. The vertical avenues that run through the Upper East Side are Sutton Place, 1st, 2nd, 5th, Madison, Lexington, and legendary Park Ave. Up and down these streets there are Penthouses worth upwards of $70 Million! Most of the wealthy businessman/women have an apartment somewhere in the Upper East Side, even Bernard Madoff had a colossal apartment in this area. An article says, “Is Fifth Avenue, New York, at $72,000 per sq/m. A 400 sq/m apartment with terraces overlooking Central Park on the Upper East Side of Fifth Avenue will set you back $29m.”

One article states, “The area is still known for being the “Silk Stocking District,” packed with the most elegant marble-faced townhouses built by wealthy magnates like the Astors and the Tiffanys in 1880-1900s… In addition, it is also safe to say that if you are fond of fine dining or haute couture, the Upper East Side will satisfy even the most demanding tastes.” There are so many great places to eat in this area, top steakhouses such as The Palm and Smith and Wollensky can be found in the Upper East.

All in all, to live in the Upper East Side in Manhattan will cost you a tremendous amount, between the real estate rates, the fine dining, and the overall standard of living.

Sources #1, #2, #3

Realtor Sued For Misrepresentation When Assessor's Record are Incorrect

2009-11-03T10:24:00.000-08:00

Posted by Lindsey Connell

There's really nothing for real estate agents and brokers to like about a recent case brought to our attention by the legal department of the National Association of Realtors® (NAR). Bowman v. Presley arose out of a 2005 transaction that took place in the state of Oklahoma. The ruling came down from the Oklahoma Supreme Court.

Michael and Heidi Presley listed their home for sale with Michael's mother, Linda Presley, a Realtor® with Century 21 Bob Crothers Realty. The listing price was $149,500. The MLS listing form showed the home to be 2890 square feet according to information that came from the tax assessor's records. The buyers, Richard and Dana Bowman, were looking for a home substantially larger than their then-residence of 1398 square feet. They made an offer on the Presley home and negotiated a purchase price of $145,000.

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“The World” in Dubai

2009-11-03T10:22:00.000-08:00

By Shawn Chandok

It has recently been stated that Nakheel, the government controlled corporation in Dubai, United Arab Emirates will be constructing a series of artificial islands to replicate countries of the world. It is confirmed that “The World is a heady $14 billion endeavor, consisting of 300 individual islands arranged to mimic the shape of the globe's landmasses. Ranging in size from five to 20 acres, and with 50 to 100 meters of water separating each island, the total area encompasses just over 20 square miles. The development is located about two and a half miles off the coast of Dubai city. Islands go for $7 million to $35 million each.” In addition to the Burj Al Arab which is famous for being the worlds most expensive and only 7 star hotel, these series of islands are being created in order to attract wealthy tourists and make Dubai a hub amongst the world’s famous cities such as Paris, London, Tokyo, etc. It has also been rumored that Virgin Atlantic entrepreneur Richard Branson is considering buying the island of England in The World for an astronomical amount of around $25 million. People say that “Sir Richard Branson symbolizes the best of British and is the ideal person today to plant the Union Jack on Great Britain.”

Source#1
Source#2
Source#3

Real Estate Near College Campuses

2009-11-03T09:45:00.000-08:00

Posted By: Michael Herscovici

Now might be the right time to purchase property in or near a college town. Listed below are the four main reasons why this might be an attractive investment:

1. Current Real Estate Prices: Real estate prices are lower than in past years so you might be able to get a great deal.
2. Higher Rent Charges: The price of rent is higher in college neighborhoods than in other parts of the country allowing you to pay off your mortgage payments faster.
3. Abundance of Renters: Since your property is in a college town, it will be easy to find someone who is willing to live there. Whether that person is a college student, or works for the university, there is always going to be someone willing to stay at your place even if it is not in the best condition.
4. Increasing Rent Charges: Most likely you will be renting to college students who will be staying in your house for up to a year max. This will allow you to increase the rent from year to year without the backlash from renters who have been with you for a while.

All of these benefits show why it might be worth it to purchase a house near a college campus.

Source 1
Source 2
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Dubai Property Prices Rise 7%

2009-11-03T07:37:00.000-08:00

By STEFANIA BIANCHI
Post by David Held

DUBAI -- Dubai property prices rose in the third quarter for the first time since the emirate's property market crashed late last year, but are still almost 50% lower than a year earlier, U.K.-based real estate consultancy Colliers International said Tuesday.

Prices increased 7% between July and September from the second quarter -- the first price jump since the market fell from its peak in the third quarter of 2008, Colliers said in its quarterly price index, which collates mortgage transactions on properties open to foreign ownership since the start of 2007.

Annual prices, however, remain 47% lower, and are currently at the same level as those recorded in the second quarter of 2007. The number of market transactions rose 64% during the third quarter of 2009 on a quarterly basis.

"The third quarter results indicate a 'bounce' in the market but we will have to wait for the fourth quarter results before we can say whether an underlying growth profile exists, indicating a potential recovery," said Ian Albert, Colliers International regional director in Dubai.

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Survey: More nonprofits view real estate as revenue

2009-11-03T02:28:00.000-08:00

Posted by Ka Lee Angel Lee

More nonprofits are looking at their real estate and seeing dollar signs, according to a national survey by CB Richard Ellis.Nearly 300 association and other nonprofit executives that make decisions related to their facilities were surveyed.This year, 39 percent of respondents considered real estate as an alternate source of income, up from 34 percent last year. That increase is likely linked to the economic strain nonprofits are facing, said the report.This year, more 501 (c)(6) organizations (42 percent) said they were looking at real estate as a revenue strategy compared to 36 percent of the 501 (c)(3) organizations.

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Grim reality still grips U.S. commercial real estate

2009-11-03T00:23:00.000-08:00

Posted by: Andrew Pia

Written by: Ilaina Jonas

NEW YORK (Reuters) - Executives do not expect the U.S. commercial real estate market to emerge from critical condition any time soon, according to a survey by The Real Estate Roundtable.

Although the three indexes tracked by the "Sentiment Survey" have risen dramatically since the near-collapse of financial markets last year, they reflect the respondents' collective sense of relief at having survived the worst of the turmoil, according to The Real Estate Roundtable.

The U.S. commercial real estate market has been in a downward spiral for more than two years. On the whole, U.S. commercial real estate values have fallen about 40 percent from their peaks in 2007. Borrowers face shortfalls in financings when loans come due, while other borrowers are struggling to meet even monthly payments.

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Commercial Real Estate Debt Spreads Rise as Fed Rejects Bonds

2009-11-02T21:03:00.000-08:00

Posted by: Scott Graulich

Nov. 2 (Bloomberg) -- Yields on bonds backed by hotel, shopping-center and skyscraper loans rose relative to benchmarks amid concern that a U.S. program to spur lending may see a slowdown in demand after Federal Reserve rejected five securities, according to Barclays Capital.

The gap, or spread, on top-ranked commercial-mortgage backed securities increased 0.15 percentage point to 6.10 percentage points more than benchmark swap rates for the week ended Oct. 29, Barclays data show.

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A new threat to the value of your home

2009-11-02T14:08:00.000-08:00

By: Zachary Pienkowski

One cause for the recent economic crisis America faced was the inflated home values by the appraisal business, and it is again in hot water. Due to pressure by a reduction in fees, many appraisal businesses are being forced to evaluate homes much farther away from their areas of expertise. Appraisers that are very familiar with certain areas are having to travel longer distances and work in foreign territory. This may not seem like a problem at first, but it has some potential pitfalls. Fully understanding the value of homes in a particular market is not something that an appraiser can pick up in a matter of minutes. It comes from the experience of working with a large number of people and homes in an area for long periods of time. The Wall Street Journal published an article recently in which a man had an appraisal company come to his home from over 40 miles away. They valued the home nearly $75,000 less than an appraiser from the area valued the home a week later. This forced the homeowner to delay refinancing for 6 months until the situation could be resolved. Proper valuation of homes is important because it keeps home owners from paying too much and protects lenders from inflating the value of collateral. Many firms are terrified of foreclosures and not being able to get their money from buyers, and the result is a low-ball effect that is dragging down the housing market.

Sources

http://online.wsj.com/article/SB125038307081334617.html

http://customsites.yahoo.com/financiallyfit/finance/article-107568-2325-0-your-homes-value-threatened-by-appraisers

http://guides.wsj.com/personal-finance/buying-a-home/how-much-you-should-spend-on-a-home/

10 Ways to Increase the Value of Your Home

2009-11-02T13:59:00.000-08:00

By: Zachary Pienkowski

In a dour housing market, wouldn't it be nice to know that your remodeling project would pay off when you went to sell the property? Remodeling Magazine evaluated the top remodeling projects, how the cost-to-value has changed since the housing market implosion, and which projects are still worth the investment. Using the magazine's "Cost Vs. Value Report for 2008-2009," let's look at some of the best projects you can undertake and recoup the majority of your cost.

Upscale Projects

Siding Replacement (fiber-cement or foam-backed vinyl). With the economic slump, home buyers aren't being dazzled by bells and whistles as much as they are improvements that will ensure lower repair and utility bills. Although replacing current siding with fiber-cement has lost value from 2007, it still nets an astonishing 87% ROI. If you prefer a foam-backed vinyl product replacement instead, you can still look to recoup 80% of your cost.
Window Replacement (vinyl or wood). Windows are not only an aesthetic feature. For most homeowners, they represent one of the easiest ways to lower home heating and cooling bills. By replacing your current windows with more efficient vinyl or wood ones, you can save on your utility bills, attract future home buyers and net a nearly 80% (vinyl) or 77% (wood) return on your investment.
Bathroom Remodel. Depending on the size and amenities of your desired bathroom, you could expect to pay over $50,000 to tear out walls, repair joists and wall studs, change structural elements and make major layout changes, such as switching a toilet and shower. However big the price tag, you can still expect to recoup nearly 71% of the cost (which would be $36,400 if you have a $50K bill) when you go to sell. This project increased its value since 2007, while its sister project – adding a complete bathroom – fell in value.
Major Kitchen Remodel. Kitchens are typically the most frequently used room in a home, so it makes sense that investing money here is going to pay off when it comes time to sell. While a major kitchen renovation is usually the most time-consuming and expensive home improvement job (averaging more than $110,000), it's also one of the most profitable. Regardless of the size of your financial layout, you can expect to get a nearly 71% ROI.
Deck Addition (composite product). With families cutting their entertainment budgets, they're spending more time at home, so it makes sense that adding a deck (composite, not wood) is a good investment. You can plan on recouping 63% of your total job cost to boost your home's value by nearly $24,000 if you paid the average job cost of $37,000.

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Fraud Watch for Homeowners

2009-11-02T13:16:00.000-08:00

Posted By Pete Hill

MORTGAGE fraud continues to expand, in both the number of incidents and the methods that criminals use to strip equity from homeowners and lenders. Now a new online service offers free help to keep homeowners safe from an emerging form of fraud known as “house theft.”

Like other real estate Web sites, this new service, called ePropertyWatch.com, provides informal home appraisals and other information to help track neighborhood real estate activity. But unlike the others, it also monitors public documents associated with a home and promises to alert homeowners to possible criminal activity, like a forged deed that purports to transfer a home’s title in order to release an existing mortgage.

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Fraud Watch for Homeowners

2009-11-02T12:37:00.000-08:00

Article by BOB TEDESCHI

Post by Shawn Chandok

MORTGAGE fraud continues to expand, in both the number of incidents and the methods that criminals use to strip equity from homeowners and lenders. Now a new online service offers free help to keep homeowners safe from an emerging form of fraud known as “house theft.”
Like other real estate Web sites, this new service, called ePropertyWatch.com, provides informal home appraisals and other information to help track neighborhood real estate activity. But unlike the others, it also monitors public documents associated with a home and promises to alert homeowners to possible criminal activity, like a forged deed that purports to transfer a home’s title in order to release an existing mortgage.

In this form of fraud, thieves take “ownership” of the home so they can “sell” it to nefarious associates who have taken out another loan on the property. The “seller” then splits the sale proceeds with the fraudulent buyer.

Industry analysts called ePropertyWatch’s service a useful tool for homeowners, though it is being offered only in major metropolitan areas right now.

EPropertyWatch is owned by First American CoreLogic, a company based in Santa Ana, Calif., which, among other things, collects real estate and mortgage data from municipalities and sells it to businesses.

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Tenants offering incentives to tenants

2009-11-02T07:14:00.000-08:00

Posted by Scarlett Lu

Homeowners have been finding it difficult to find new tenants due to the rise of the unemployment rate. Landlords have been offering incentives to encourage tenants to stay. These incentives may include a flat-screen TV, cash, new carpets, kitchen upgrades, two months free rent, etc. Landlords want to avoid having empty lots; sometimes apartments are empty for months which require marketing. Having a vacant apartment is extremely expensive for landlords; they would have to fill in to pay for broker’s fees and lose months of rent. Since the rise of unemployment has been increasing, tenants find roommates or move to cheaper apartments. “In the third quarter, the national apartment-vacancy rate hit 7.8%, a 23 year high. “ Many landlords are doing whatever they can to keep their units occupied. Equity residential said new tenants are paying 9%-10% less rent than previous residents. The higher vacancy rate is pushing down rents and value of those units. Landlords are now more willing to negotiate with you for lower prices on rent; they want you to stay because it’s hard to find new tenants. Lower rents will also put pressure on house prices, since renting is its competing product. Rents will continue to decrease if unemployment rate continues to rise.

http://online.wsj.com/article/SB10001424052748704746304574506040208385548.html?mod=WSJ_hps_RIGHTTopCarousel

http://www.calculatedriskblog.com/2009/11/more-on-falling-rents.html

http://www.nytimes.com/2009/08/09/realestate/09cov.html

Northern Trust to Enhance Real Estate Fund Administration Capabilities

2009-11-02T06:59:00.000-08:00

By:SOURCE Northern Trust Corporation
Posted by: Scarlett Lu

LONDON, Nov. 2 /PRNewswire/ -- As part of its overall strategy for growing and developing its alternative fund administration business, Northern Trust (Nasdaq: NTRS) is strengthening its real estate fund administration capabilities with a new specialist technology platform that will form the foundation of its world class service to real estate fund managers around the globe.

"Real estate managers and their investors need access to accurate, timely and transparent information across the spectrum of their real estate portfolio," said Sascha Calisan, real estate fund administration product manager at Northern Trust.

"Growing complexity of structures and investment techniques, combined with increasing focus on governance and risk controls, requires flexibility that only a bespoke solution can deliver. Northern Trust has made a strategic investment in technology that will enable us to better meet our clients' needs and those of their dynamic investor base."

The system, which will be rolled out in Europe initially and ultimately to clients located across the globe, will be fully integrated into Northern Trust's online client portal, Passport, enabling clients to access their cash positions, net asset values and all of the reporting information that they require. In addition, it will be linked seamlessly to other Northern Trust services such as banking, transfer agency, over-the-counter (OTC) derivative processing, foreign exchange and, potentially, other services that may add value to Northern Trust's real estate clients. click here to read more

Sports Arena In Your Back Yard

2009-11-01T17:11:00.001-08:00

Posted By: Michael Herscovici

It might be your dream to have your favorite sports teams stadium in your own backyard. Just think you would not have to pay for parking. Would not have to worry about travelling to the games. Best of all, you would be able to feel the energy of the stadium even in the comfort of your own home.

However, having a home near a ballpark also has it assoicated cost. Due to the fact that sports teams need new stadiums frequently, there is always going to be a group of people that need to pay for that stadium. One of the ways cities pay for stadiums is by increasing property taxes.

This could affect you and your ability to pay your mortgage on time. Remember that the "T" in PITI is property tax, and if the taxes are going to rise because a team needs a new stadium then you might lose your home. Taxes are not the only issue that you might have. Since homeowners are aware of the likelyhood that taxes will increase the relative value of similar properties are higher in areas that do not have stadiums in their area. What does this mean to you? You home will not be worth as much an area that has a stadium in the area.

So as much as I the fan in me wants my teams to play in my area, the personal finance student in me wants them to be a little further away.

Source 1

Source 2

Source 3

We are not in a real estate crash!!!

2009-11-01T16:59:00.000-08:00

Click here to find out why we are not in a real estate crash.

Posted by Michael Herscovici

Home of Your Choice...Not Easy to Afford.

2009-10-29T17:52:00.000-07:00

By Anshu Dixit

As most of the economists have said and are still saying that are economy is getting better. Is it really getting better? Research has shown that some areas are getting better and some are still the same. Such as, housing or real estate market is not doing really good. Real estate market was satisfactory around the month of September but now the housing prices are going down. Which is a matter of lot of people: personally and professionally. Due to the financial crisis many people cannot afford a house of their choice. Government came up with different ideas so people can buy the houses. Such as, in addition to relatively low prices and attractive mortgage rates, the housing market has been supported in recent months by a temporary government tax credit for first-time homebuyers. On the other hand, many home owners are facing problems in keeping their houses due to increase in the mortgage rates. It is an increasingly common question facing homeowners, many of whom have seen their properties lose large amounts of equity in recent years: would you give up a home that is considered to be “underwater” even if you could still afford the monthly payments? In a telephone survey of about 1,000 homeowners nationwide and found that when a mortgage exceeds the home’s value by less than 10 percent, strategic defaults are rarely considered. But if the home’s value dropped to half of the mortgage amount, 17 percent would abandon the loan. It is hard to consider any one source, because some studies are showing that housing prices are going down and some are showing that they are going up.

Source 1

Source 2

Source 3

Surprise drop in new home sales

2009-10-29T17:10:00.000-07:00

Posted by:- Anshu Dixit

By Ben Rooney, CNNMoney.com staff reporter

NEW YORK (CNNMoney.com) -- Sales of newly built homes fell unexpectedly in September after rising for five straight months, according to government figures released Wednesday.

The Commerce Department said new home sales fell 3.6% to a seasonally-adjusted annual rate of 402,000 last month, from a downwardly revised rate of 417,000 in August. It was the first time new home sales declined since March.

Economists surveyed by Briefing.com had expected September new home sales to rise to a rate of 440,000 units.

"We're attributing most of the decline to the potential expiration of the new home-buyer tax credit," said Adam York, an economist at Wells Fargo. "It's getting harder to buy a house and no one wants to close after the credit expires," he added.

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Homeowner's Dilemmas

2009-10-29T16:39:00.000-07:00

Posted By Pete Hill

A recent study suggests that most homeowners have qualms about abandoning a mortgage that they can afford to pay, even if it straps them to an investment that’s unlikely to pay off anytime soon.

But if the house has lost significant value, or if many neighbors walk away from their mortgages, the study says, “strategic defaults” are significantly more likely.

It is an increasingly common question facing homeowners, many of whom have seen their properties lose large amounts of equity in recent years: would you give up a home that is considered to be “underwater” even if you could still afford the monthly payments?

A new idea to help homeowners is to offer them the option, that you could give up 1% of your homes value and not have to worry about losing more.

That is the essence of a product introduced this month by Working Equity Inc., a San Francisco company recently started by former financial services executives.

Industry analysts and financial consultants suggest that the product could be useful to homeowners but should be approached with caution.

Rules put in place in late 2008 by Fannie Mae and similar rules adopted by Freddie Mac are less favorable to borrowers who put down 20 percent to 25 percent, considered to be the industry minimum.

For most people, it turns out, smaller down payments result in lower interest rates. Whether that benefits borrowers in the long term, though, is open to debate.

Sources:

http://www.nytimes.com/2009/10/25/realestate/25mort.html?_r=1

http://www.nytimes.com/2009/10/18/realestate/18mort.html

http://www.nytimes.com/2009/09/06/realestate/06mort.html

Former real estate financier shot to death in LA

2009-10-29T10:37:00.000-07:00

Posted by: Scott Graulich

LOS ANGELES — A former multimillionaire real estate financier has been found shot to death in a parking garage in Los Angeles.

Police said Wednesday Richard Traweek was found Monday morning on the garage floor of his apartment building in the city's Brentwood neighborhood.

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Homeowners face increased debts

2009-10-29T10:20:00.000-07:00

Posted by: Scarlett Lu

When it comes to buying homes, Canadians are taking on too much debt. "Canada's housing market has rebounded more strongly than other parts of the economy with sales at times at record levels, although prices remain despressed." The low rates are attracting Canadians to take out mortgage debts to buy homes.
These low rates eventually increased which eventually led to the collapse of the U.S housing market , which led to the financial crisis. Policy makers have the ability to influence financial institutions that issue mortgages, they should tigten government gauranteed mortgages. The housing market can be regulated and re-evaluated.

Home prices across Australisa have rose in the three months to Septemer because investors upgraded into more expensive properties. Interest rates are expected to rise and some homeowners may not be able to afford it. And some people may not be able to buy a home anytime soon.

Despite signs that the economy is recovering, home prices will continue to decline if unemployment rates remain high. Home prices play a role in rebulding the economy. As prices of homes go up, homeowners debt also increases. Homeowners may not be able to pay off the debt if they do not have a job.

http://thechronicleherald.ca/Business/1149969.html

http://www.newsday.com/business/home-prices-up-in-august-but-can-it-continue-1.1553600
http://www.smh.com.au/business/home-prices-rise-as-owners-upgrade-20091029-hltf.html

Real Estate Community Greets Growth with Caution

2009-10-29T10:16:00.000-07:00

Posted by: Andrew Pia Written by: Erika Morphy

WASHINGTON, DC-Today the Commerce Department released GDP figures that showed a 3.5% growth in Q3 – the fastest pace in two years. The news did not come as a surprise; both public, private and non-profit economists have been forecasting positive growth for the rest of the year and into 2010, prompting talk that the recession has unofficially ended. In a recent survey by the National Association of Business Economics, 34 of 43 economists polled said the recession is over. Federal Reserve Chairman Ben Bernanke echoed similar sentiments. "From a technical perspective, the recession is very likely over," he said recently.

Still, though despite the macroeconomic gains, few economists are expecting to see dancing in the streets at such pronouncements. Undeniably, there is still plenty of pain that must be worked through, starting with the high unemployment figures. Analysts predict unemployment will not peak until mid 2010 even as growth picks up.

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Types of Mortgages

2009-10-29T09:45:00.000-07:00

By Shawn Chandok

One of the most important decisions we will make in our lives is to buy a house. When financing for a house there are many options we can choose however the most common will include some type of mortgage. So what are some types of mortgages that might seem favorable? One type is called an adjustable rate mortgage. This mortgage seems attractive at first because of its low interest rate. A lower interest rate qualifies you for a lower payment per month which will save you money. However, a major disadvantage to adjustable rate mortgages is that it transfers all the risk to the borrower. Since adjustable rate mortgages follow a specific index, it the market rates increase so does the amount you pay per month. Personally, I would not choose an adjustable rate mortgage (arm) however it can be very useful to someone who plans to purchase a house during a housing bubble (some argue such as now) and sell it in a couple of years for a quick buck.
Another type of mortgage is a fixed rate mortgage, which as the name suggests gives you a fixed interest rate per month. This means all your monthly payments will be the same. I personally like FRMs better because they transfer all the risk to the borrower. For example, supposing you have a 5% monthly interest loan and the market spikes causing an average of 7%. In this scenario your FRM seems very favorable. However, supposing the market goes sour and offers 3%, you might consider refinancing.

Last but not least, another type of mortgage is a graduated payment mortgage (GPM). These type of mortgages appeal to college graduates because the initial interest rate is very low. However, the interest rate spikes up as your income increases. So my advice for GPM’s would be, if you are signing one make sure you sign for a short period of time where you don’t except your income to skyrocket too much (Example: 5 year loan out of college).

Source#1
Source#2
Source#3

What type of Mortgage should I take for my House?

2009-10-29T08:20:00.001-07:00

Post by David Held

When purchasing a home there are many things to consider, the location, the asking price, the taxes, and most especially the type of mortgage you can get. When considering a mortgage there are many things that come into question, what is the loan to value ratio, how much interest will I be paying, can I afford the mortgage payments, do I need to put down any points, and what type of mortgage is it (Fixed Rate or ARM)?

There’s a huge difference between a fixed rate mortgage and an adjustable rate mortgage. First of all the interest rate for an adjustable rate mortgage starts off lower than a fixed rate mortgage. This sometimes could be considered a teaser rate, which means that you have to be careful because your interest rate will spike at a certain time. An ARM puts the market risk on the borrower because he is betting that the interest rates say lower than the fixed rate in a fixed rate mortgage, but most of the time this is not the case. The borrower must evaluate/analyze the economy because if he jumps into an ARM. If interest rates spike, he will be paying a lot more than expected, thus having a greater chance to default. If one defaults on a mortgage their credit rating will drop tremendously and they will have a tough time getting another loan.

The safe option, unless you know exactly what the market is going to do, is a FRM because all the risk is on the lender. If the economy starts thriving and you are missing out on a lower interest rate, than there is always the ability to refinance (if it’s cost efficient).

Source #1, #2, #3

In Sicily, Renovating a Cave

2009-10-29T07:51:00.000-07:00

By LIZA FOREMAN
Post by David Held

Amid the fabled 100 churches that line the sun-cracked streets of this Sicilian city, the New York architects William Brockschmidt and Richard Dragisic found a second home.

By modern standards the property is no ordinary dwelling. It includes a centuries-old cave in the area’s volcanic rock that once was a place of worship and may have even been used as a tomb. The couple does not know exactly when the cave first became a living area but “the caves of Modica have been inhabited as troglodyte dwellings since the time of the Sikels,” Mr. Brockschmidt said, referring to some of the earliest inhabitants who gave the island its name.

Over the last few centuries, construction around the cave has created a two-story stucco property that Mr. Brockschmidt and Mr. Dragisic modernized into a two-bedroom two-bath home covering 3,000 square feet. (Think part Flintstones and part palazzo fit for a Sicilian prince.)

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Real Estate Strategies

2009-10-29T06:58:00.000-07:00

By Ka Lee Angel Lee

Our homes are one of our largest fortunes, therefore it is essential to know the real value of them in order to make the best benefit from the asset.

First you will need to access the value of your home to you. This means whether you are satisfied with your present home right now or are you planning to get a new one? If you plan to do the later, you will need to find out what you are looking for and then compare cost and benefit of moving. There is a strategy for young movers. That is to go downsizing right now. Moving to cheaper place can pay off especially when you own a house that is worth a fortune now. By selling or leasing your more expensive house, the proceeds can provide money to live on early in retirement. Also, experts advise that when you invest in real estate, limit the amount to less than one-third of your retirement assets in it and try to select more flexible real estate investments to deal with because real estate is not very promising for long term investments.

Sources:

http://www.businessweek.com/investor/content/nov2007/pi2007112_531703.htm

http://www.realstrat.com/

http://www.johntreed.com/strategies.html/

Bargains Abound in New York’s Sublease Market

2009-10-28T16:50:00.001-07:00

Article by ALEX TARQUINIO
Post By Shawn Chandok

There is a fire sale these days on Park Avenue. Financial companies are trying to sublet space that they are no longer using in some of the most desirable office buildings in Midtown Manhattan, and the rents they are asking are heavily discounted compared with what landlords are seeking for similar space across the street — or even in the same buildings.

It started last fall, during the financial turmoil that was unleashed after Lehman Brothers collapsed. Many large financial companies dumped hundreds of thousands of square feet on the sublet market, with much of that space in prime Midtown locales near Grand Central Terminal, Rockefeller Center and the Plaza Hotel. Now, the sublet space that is still on the market is being offered at rents much lower than rents for space that can be leased directly from landlords in the same submarkets.

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Real estate strategy and competitive strategy

2009-10-28T06:56:00.000-07:00

Posted by Lindsey Connell

An organization’s real estate decisions can greatly benefit and support the company’s overall business objectives. Some organizations consider how a specific real estate transaction relates to their real estate strategy but many do not even have a real estate strategy. By not having this strategy, many companies result in miscalculations and have a difficult time judging the appropriateness of a specific real estate plan. These companies may also go into a real estate transaction without a strategy.
A standardization real estate strategy, for example, is an appropriate one to have within a company because it supports all three competitive strategies: low cost, differentiation, and focus. A value-based real estate strategy supports the competitive strategies of differentiation and differentiation-focus. Incremental real estate strategies, on the other hand, are ambiguous and do not support any of these competitive strategies. If a business were to choose this strategy even though they had a competitive strategy of lowest cost, for example, then their competitive strategy and real estate ones would not be supporting one another to their full potential. A company must first determine their competitive strategy and from there they can make their real estate one. If these two strategies do not match up then the company will not be able to be successful, but with both strategies complimenting one another, it can give the company a competitive edge.

http://aux.zicklin.baruch.cuny.edu/jrer/papers/pdf/past/vol08n04/v08p475.pdf

http://www.emeraldinsight.com/Insight/viewContentItem.do;jsessionid=92B8DB3B1FB7FEE4415A3364BE9D807A?contentType=Article&contentId=1597993

http://www.siteselection.com/issues/2002/mar/p135/

Investors Looking for Real Estate Gems

2009-10-27T18:49:00.000-07:00

Posted by: Christina Dove

Investors are slowly regaining their appetite for risk and looking for gems, or even valuable scrap, among the wreckage of the commercial real estate market.

Gramercy’s prospects don’t look that great. It has $2.7 billion in debt investments that include some aggressive commercial real estate loans made during the bubble. For instance, $473 million in mezzanine loans are junior-ranked securities that face especially high risk.

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Obtaining Real Estate License

2009-10-27T18:36:00.000-07:00

Posted by Lindsey Connell

How you get a real estate license will vary from state to state, but will usually involve minimum age requirements, certain education and/or experience requirements, applications and fees, and other state-specific details. So you must be sure that you know the relevant information from your state before you get too deep in preparing for your real estate exam. Remember: What your friend did last year to get her real estate license in your state, and what your Uncle did yesterday to obtain his real estate license in a different state, is meaningless. You have to know the most current requirements and procedures from your state, that are in effect today.

Real Estate Express has created a system that makes it easy for you to learn everything you need to know to meet the state requirements for licensing. You can trust RealEstateExpress.com to deliver everything you need to be successful in your pre-license studies.

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Homeowners Moving Away

2009-10-27T14:57:00.000-07:00

Posted By Pete Hill

A RECENT study suggests that most homeowners have qualms about abandoning a mortgage that they can afford to pay, even if it straps them to an investment that’s unlikely to pay off anytime soon.

But if the house has lost significant value, or if many neighbors walk away from their mortgages, the study says, “strategic defaults” are significantly more likely.

It is an increasingly common question facing homeowners, many of whom have seen their properties lose large amounts of equity in recent years: would you give up a home that is considered to be “underwater” even if you could still afford the monthly payments?

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Home prices rise in major cities, but how long will it last?

2009-10-27T10:42:00.000-07:00

By: Zachary Pienkowski

While many believe the outlook for the residential real estate market still looks bad, home prices continued to increase for the third straight month. Rising house prices are an important factor in rebuilding a stable economy, but it alone is not a good indication of the state of the housing market . Prices are at the highest they have been since August 2003, and yet on average are still more than 30% lower than the overinflated peak of May 2006. While it is a good thing that the home prices are increasing, there are some potential pitfalls that may drag them back down. The national unemployment rate is continuing to rise and the popular first time home buyer tax credit is coming to an end soon. This is expected to lower the demand for home buying and the unemployment rate continuing to rise will mean a larger number of foreclosures due to Americans being unable to pay their mortgages. The track record for rising home prices is not long enough to make economists confident, however they have said that if prices continue to increase during the winter months that would be a very encouraging sign for the long-term outlook. In order to keep the demand for home buying up Congress is working on a plan to to extend the tax credit program and eventually phase it out within the next year. That would allow for at least a solid year of home purchasing and hopefully increasing prices as well.

Sources

http://money.cnn.com/2009/10/27/real_estate/case_shiller_August_home_price_index/index.htm?postversion=2009102712

http://news.yahoo.com/s/ap/20091027/ap_on_bi_ge/us_home_prices

http://money.cnn.com/2009/10/21/real_estate/what_housing_bust/index.htm?postversion=2009102115

Artists plan to encase vacant Detroit home in ice

2009-10-27T10:31:00.000-07:00

By: Zachary Pienkowski

DETROIT – A photographer and an architect plan to freeze one of Detroit's thousands of abandoned homes this winter, encasing it in ice to draw attention to foreclosures that have battered the region.

The project from Gregory Holm and Matthew Radune, dubbed Ice House Detroit, is the latest example of the remnants of Detroit's population loss and industrial decline serving as both artistic inspiration and canvas.

"I've been really fascinated by the whole mythology of Detroit and the structures and what they represent," said Holm, who grew up on the city's east side and lived in the suburb of Hamtramck from 1997 until moving to New York City four years ago.

Holm, 38, plans to photograph the transformation of the house, which will be sprayed with water and gradually covered in ice. In the spring, crews will salvage what building materials can be reused and demolish the home. The lot will be donated, probably for a community garden.

The Detroit area has a foreclosure rate that's among the nation's highest, and Radune said the city offers a unique backdrop for the artists' work.

"It's a project that couldn't be done in the same way in New York City and it wouldn't necessarily make the same sense," said Radune, a 32-year-old freelance architect in Brooklyn who also is a DJ. "Detroit was a place where we could make it into more than architectural installation."

Holm and Radune are working to raise $11,000 online to fund the project, mostly for costs related to demolition, and hope to soon figure out where in the city they'll freeze a home.

Detroit, which has shrunk from a population of 1.8 million in the 1950s to half that now, has tens of thousands of vacant homes and buildings.

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