One Bedroom is Now Available at The Belvedere
July 27, 2008 | Filed Under Boston Condos, Boston Luxury Developments, Boston Real Estate | Leave a Comment
Rare opportunities go fast… This one bedroom condo in prestigious Belvedere is well priced and ready to go. The Belvedere is one of the most sought after luxury developments in Boston, conveniently adjacent to luxury Prudential Mall, full time concierge, in-house chef and garage parking are only a few of the luxury amenities The Belvedere has to offer.
Quick Facts:
Price: $899,000
Size: +/- 837 Square Feet
Parking: 1 Garage
Condo Fees: $1,033 per month
Taxes: $6,968
Courtesy of: Richard Drinkwater of Otis and Ahearn Real Estate
President Bush To Sign Housing Bill
July 24, 2008 | Filed Under Real Estate News | 4 Comments
President Bush dropped his opposition to new legislation designed to shore up the housing market, White House press secretary Dana Perino told reporters . Treasury Secretary Henry Paulson says the bill, which is moving swiftly through Congress, should help turn around the housing downturn. The president could sign the bill into law by the end of the week, despite his previous objections to its provision of $3.9 billion to help neighborhoods hit hardest by foreclosures. The White House also had criticized the plan as a burden on government agencies and a risk for taxpayers.
Under the new legislation, the Treasury Department will have the power to extend an unlimited line of credit to government-sponsored mortgage companies and buy an unspecified amount of their stock. Also, struggling homeowners will be allowed to refinance into more affordable loans backed by the Federal Housing Administration in an effort to stem the tide of foreclosures. The bill places tighter controls on Fannie Mae and Freddie Mac, and sets a cap of $625,000 on the loans that they may buy. It includes about $15 billion in housing tax breaks and allows people who don’t itemize their taxes to claim a $500 - $1,000 deduction on their 2008 property taxes. The bill also increases the limit on the national debt to $10.6 trillion.
“We believe this is not the time for a prolonged veto fight,” Perino says. “The positive aspects of the bill are needed now to increase confidence and stability in the housing and financial markets. While we have concerns with other aspects of the bill, it is important that the new authorities are put in place promptly.”
Sale-leaseback Agreements Gain Popularity
July 17, 2008 | Filed Under Real Estate News, Real Estate Trends and Statistics, Real Estate Investment | 1 Comment
With the threat of foreclosure looming for a growing number of homeowners, some are trying more unconventional methods to avoid losing their home. The Wall Street Journal reports that real estate agents are seeing an increase in sale-leasebacks, in which homeowners sell their home and then rent it back from the new owner. Although the concept is neither new nor common, it is becoming more popular, the Journal reports.
Such arrangements might work well for homeowners who are barely making their mortgage payment or who may soon default on their loan. However, some real estate experts are wary of leaseback agreements and warn that, in much of the country, the seller may end up paying just as much for rent as they had paid for their mortgage. My question is: If they can’t afford the mortgage, how will they afford the rent?
Homebuyers Expect Market to Improve
July 16, 2008 | Filed Under Real Estate News, Mortgage and Finance | 1 Comment
Will a new U.S. president help turn around the housing market? Many homebuyers seem to think so. A new Harris Interactive survey commissioned by Move, Inc., finds that 44 percent of homebuyers believe the housing market will improve once a new president takes office next January.Nearly half (48 percent) of women and 41 percent of men think a new chief executive will bolster the housing market.
However, 81 percent of homebuyers are still nervous about the housing market and cite several barriers to owning a home, including cost of a down payment (28 percent), their annual income level (20 percent), lack of confidence in the economy (26 percent), and high home prices (31 percent), especially in the Western states (39 percent).
Despite these reservations, desire for homeownership remains strong, the survey finds. While 41 percent of current homeowners plan to purchase again, 80 percent of all renters plan to purchase a home someday and 47 percent plan to do so within the next five years.
Fed Announces New Rules for Mortgage Lenders
July 16, 2008 | Filed Under Mortgage and Finance | 1 Comment
The Federal Reserve Board on Monday announced rule changes for home mortgage lenders to help protect consumers from deceptive lending practices. The new rules, which amend Regulation Z of the Truth in Lending Act, adds four key protections for higher-priced mortgage loans.
-Prepayment penalties will be banned if the payment can change in the initial four years. For other higher-priced loans, the prepayment penalty period cannot last more than two years.
-Creditors must verify income and assets to determine repayment ability.
-Lenders must establish escrow accounts for property taxes and homeowner’s insurance.
-Lenders are prohibited from making a loan without regard to the borrowers’ ability to repay the loan from income and assets other than the home’s value.
In addition, the following rules apply to all mortgage loans regardless of price:
-Mortgage lenders cannot coerce an real estate appraiser to misstate a home’s value;
-Mortgage companies must provide a good faith estimate of the loan costs, including a schedule of payments, within three days after a consumer applies for a loan;
-Loan companies will be prohibited from certain practices, such as pyramiding late fees. They will also be required to credit loan payments as of the receipt date and provide a payoff statement within a reasonable time period.
All of the rules, except the escrow requirement, will take effect October 1, 2009.
New Study Tracks Home Price, Supply, Demand Trends
July 15, 2008 | Filed Under Real Estate News, Real Estate Trends and Statistics, Boston Real Estate | Leave a Comment
For-sale home listing prices declined in 11 of 26 markets surveyed in June while prices increased in 15 others, according to Real-Time Housing Market Update, published by Altos Research and Real IQ, a real-time real estate market research firm. The study’s 10-City Composite Index finds that home prices slipped 0.5 percent to $512,110 during June and 0.8 percent for the past three months.
For the third consecutive month, Las Vegas had the largest monthly price drop, falling 3.6 percent during June and 7.2 percent over the past three months. Denver led all markets with price increases, up 2.6 percent during the month and 6.4 percent over the past three months. The Boston market showed a 0.4 increase in June and 1.7% over the past three months.
Inventory of property listings rose in 17 of 26 markets with the largest increases in Los Angeles and San Diego, up 8.7 percent and 6.1 percent respectively in June. In the 10-City Composite Index, inventory increased 1.9 percent in June and 5.7 percent for the most recent three-month period. Although inventory dropped 0.1% from the last month in Boston, it rose 6.9% over the past 3 months. Inventory fell by more than 1 percent in only three markets: Tampa, Washington, D.C., and Phoenix.
For the 10-City Composite Index, the average days-on-market was 109 in June, up from 106 a month earlier. Days on market declined in seven of 26 markets surveyed while 11 markets averaged more than 100 days. Miami posted the highest average days on market with 154 days, while the lowest levels were in Austin (72 days), and San Francisco (76 days). In Boston, we saw a 3.7% decrease in days on market over the past three months.
Risk of Home Price Declines Falls in Many Areas: Report
July 10, 2008 | Filed Under Real Estate News, Real Estate Trends and Statistics, Boston Real Estate | Leave a Comment
Metropolitan areas that experienced rapid home price appreciation during the housing boom are at a higher risk of continuing price declines over the next two years than cities that had more modest increases, according to a study by PMI Mortgage Insurance Co. The Summer 2008 U.S. Market Risk Index ranks the nation’s 50 largest metro statistical areas based on the likelihood that home prices will be lower in the next couple of years using data from the Office of Federal Housing Enterprise Oversight.
The risk of falling home prices declined in 35 of the 50 largest MSAs and 326 of all 381 MSAs surveyed. Riverside-San Bernadino-Ontario, Calif., had the highest risk of future price declines, followed by Fort Lauderdale and Palm Beach, Fla., while Fort Worth-Arlington and Dallas-Plano-Irving, in Texas, and Pittsburgh, Pa., all had the lowest risk at less than 1 percent.
Boston was ranked with 11.8% risk of price decline in the next 2 years!
MSN Ranks Bargain Markets
July 10, 2008 | Filed Under Real Estate News | 1 Comment
While some major cities are experiencing falling home prices, several hidden gems in the central part of the United States offer affordable and appreciating housing, strong local economies and a good quality of life, according to the 2008 MSN Real Estate Most-Livable Bargain Markets list. The largest 100 U.S. cities were evaluated based on several criteria: affordability, home price appreciation, unemployment, cost of living, commute times and whether there was sufficient entertainment and recreation to keep people busy throughout the year.
The top cities were:
1. Wichita, Kan.
2. Omaha, Neb.-Council Bluffs, Iowa
3. Harrisburg-Carlisle, Pa.
4. Madison, Wis.
5. San Antonio
6. Indianapolis
7. Pittsburgh
8. Dallas-Fort Worth
9. Tulsa, Okla.
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