From our friends at Realtor.com
Fear of overpaying for property is common these days, especially in places like New York where prices continue to be unstable.

If you encounter potential buyers who are frozen because they are concerned that they will pay too much, here are some factors to point out:
Waiting for the right time can be expensive. Some buyers would have more equity today, despite falling prices, if they had bought when they were first considering it, instead of continuing to pay rent.
Financing is fickle. Some people who were highly qualified last year can’t find financing this year because the credit market has tightened or their personal financial situation now makes them an undesirable borrower.
Interest rates are headed up. If prices decline by another 10 percent, but interest rates increase by 1 percentage point, the monthly payment will be the same.

Source: The Wall Street Journal, Douglas Heddings (07/27/2009)

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Tags: Real Estate News

From our friends at Realtor.com
Sales of newly constructed single-family homes spiked 11% in June to an annualized rate of 384,000 homes, according to a report released Monday. The gain over May was much greater than expected. A consensus of housing industry analysts had forecast seasonally adjusted sales of 352,000, according to Breifing.com. (more…)

From our friends at REALTOR.Com
If you were drawing a real estate market trend line, you’d start in the west and go east, according to real estate commentator Marc Roth of Business Week.

Roth says the decline in the real estate market began in the West in 2007 with a 20 percent drop in transactions. The South, Midwest, and Northeast had milder declines of 13 percent, 11 percent, and 7 percent respectively that year. (more…)

Tags: Real Estate News

From our friends at Realtor.com
Independent housing economist Tom Lawler, who has pointed out frequently that his dog Kita could have qualified for a mortgage at the height of the boom — despite having a low “Fido Score” — is arguing now that prices for low- and mid-range homes are stabilizing. (more…)

Tags: Real Estate News

From our friends at Realtor.com
Many investment experts advise it’s time to buy. With prices falling, it is a once-in-a-generation chance to load up on property, they say.

How much of an investment portfolio should be devoted to real estate? David Swensen, who manages Yale University’s endowment, says 20 percent is a smart number.

One possibility is real estate investment trusts (REITs), which, despite the fact that they are slashing dividends to conserve cash, are still paying average yields of 7.3 percent. That’s double the yield on Treasurys.

Should a home be part of the equation? Michael Kirby, founder of Green Street Advisors, says no.

“You should own a house to provide shelter,” says Kirby. “In a way, it’s not an investment, and it’s not part of your investment portfolio. It’s really just a living expense. By owning a house you are prepaying rent.”

Source: Forbes (08/03/2009)

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From our friends at Realtor.com
Nationwide housing starts and permits posted substantial gains in June as homebuilders responded to improved market conditions and the impending expiration of the first-time homebuyer tax credit, according to data released by the U.S. Commerce Department. Commerce reported a 3.6 percent gain in overall housing starts to a seasonally adjusted annual rate of 582,000 units and an 8.7 percent gain in permit issuance to 563,000 units.

Single-family housing starts rose for a fourth consecutive month in June, posting a 14.4 percent gain to a seasonally adjusted annual rate of 470,000 units, while single-family permits rose for a third consecutive month, posting a 5.9 percent gain to 430,000 units. Meanwhile, the multifamily side, which characteristically displays greater month-to-month volatility, posted a 25.8 percent decline in starts following an unsustainably large gain in the previous month, to 112,000 units. Multifamily permits rose 18.8 percent to 133,000 units from an abnormal low in May.

Regionally, housing starts were mixed, with the Northeast and Midwest posting big gains of 28.6 percent and 33.3 percent, respectively, and the South and West posting declines of 1.4 percent and 14.8 percent, respectively. However, the declines in both the South and West were entirely driven by dips in multifamily production.

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From our friends at REALTOR.Com
Despite high unemployment and general concerns of too much existing inventory, new-home construction appears to be rising.

According to Friday’s report from the U.S. Commerce Department, construction of new homes rose 3.6 percent in June compared to May. Building permits climbed 8.7 percent, and single-family home starts jumped 14.4 percent to 470,000, after rising 5.9 percent in May.

In real numbers, ground was broken for an estimated 58,300 houses nationwide in June, and an estimated 58,400 building permits were issued.

Here’s a look at housing starts in different U.S. regions:
Midwest: up 33.3 percent
Northeast: up 28.6 percent
South: down 1.4 percent
West: down 14.8 percent

Source: The Wall Street Journal, Jeff Bater (06/17/2009)
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From our friends at REALTOR.Com
Bank attitudes toward risky lending is making it very difficult for the self-employed, even those with high incomes, to secure mortgages.

No-doc loans are particularly hard to get, locking out people whose incomes are derived from investments or who are able to tax-shelter significant dollars.
The California Mortgage Bankers Association spokesman Dustin Hobbs says the industry understands that banning most alternative financing isn’t the long-term answer. (more…)

Tags: Real Estate

From our friends at REALTOR.Com

Demand for mortgages returned last week after two consecutive down weeks, pushing the index up 10.9 percent to 493.1 from 444.8 the previous week on a seasonally adjusted basis that reflected the July 4 holiday.

On an unadjusted basis, the index decreased 0.5 percent compared with the previous week, but rose 7.2 percent compared with the same week a year ago. (more…)

Tags: Real Estate News

From our friends at REAL Trends
Zillow and Trulia traffic grow in first half 2009 amid real estate market uncertainty, homeowners, buyers and sellers turning to Zillow® in record numbers for research and advice. An average of 8.3 million unique users visited Zillow each month during this period, which is an increase of 67 percent year-over-year. In addition, the site had some 35 percent more for-sale listings in the first half of 2009 versus a year earlier, as the result of more listings feed partnerships with brokerages and Multiple Listings Services. (more…)

Tags: Real Estate