Sale-leaseback Agreements Gain Popularity
July 17, 2008 | Filed Under Real Estate News, Real Estate Trends and Statistics, Real Estate Investment | Leave a 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.
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 | Leave a 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.
More Homeowners Look for Energy-Efficient Upgrades
June 26, 2008 | Filed Under Real Estate News, Real Estate Trends and Statistics, Boston Real Estate | 3 Comments
As energy costs soar, more homeowners are looking for money-saving solutions from remodeling contractors. According to NAHB’s quarterly Remodeling Market Index, 33 percent of the contractors surveyed said they are receiving more requests to improve the energy efficiency of clients’ homes.
The study finds that the most common energy-efficient products installed by contractors include:
Windows with better insulation - 73 percent;
Insulation upgrades – 65 percent
Insulated exterior doors – 52 percent
High-efficiency HVAC systems – 56 percent
High-efficiency kitchen appliances – 47 percent
Water-saving faucets and fixtures – 46 percent
Tankless water heaters – 35 percent
This report supports the latest trend in the Boston Real Estate market: “green” buildings, LEED certified new constructions, etc… Monthly payment is the most important factor for buyers.
Read more about the first “green” residential building in Boston: The MacAllen Building
Stunning 2 bed 2 bath Home Now Available at the Regatta Riverview
June 19, 2008 | Filed Under Real Estate News, Boston Lifestyle, Boston Condos, Boston Luxury Developments, Boston Real Estate | Leave a Comment
For you Bostonians who haven’t been over to the other side of the river in a while, it is really time to expand your horizons. East Cambridge is booming as the North Point project takes off. The first stage of the North Point Park is absolutely stunning. Acres of rolling greens run into finely manicured flowers and a mondern playground. Tie your boat to one of the many docks, or simply stroll over from Beacon Hill. The second stage of the planned park, known as Central Park, is well underway. The North Point loft buildings now have certificates of occupancy, and the commercial buildings, restaurants and retail shops will be built soon. Oh, and I almost forgot to mention, the Regatta Riverview has some of the best views in the entire metro Boston area. The Regatta is super close to both MGH and MIT.
Come visit this pristine 2 bedroom 2 bathroom home at Sunday’s Open House (12:00 - 2:00). This condo features a stellar master bath with deep Jacuzzi tup and multiple shower jets, Brazilian cherry floors, cherry cabinets, stainless steel appliances and a huge walk-in closet. The price includes one valet garage parking space and is pet friendly. Amenities include 24-hour concierge, pool, gym, movie theater, business center and club room. Located only a few minutes from the Green Line T.
10 Museum Way #1621 Exclusively offered at $685,000
The Boston Courant Vs. Boston Homes
June 16, 2008 | Filed Under Real Estate News, Boston Real Estate | 3 Comments
As most of you locals may have noticed, The Boston Courant started publishing a new open house section about nine weeks ago. It has quickly taken off and is quite the rival for Boston Homes. Rather than update its open house section from the LINK network link Boston Homes, The Boston Courant uses MLS…the prefered multiple listing source for local agents. This free market competition will hopefully bring a balance to the current advertising system. Good Luck Boston Courant!
Pending Sales Up 6.3% nationwide according to NAR
June 12, 2008 | Filed Under Real Estate News, Real Estate Trends and Statistics, Real Estate Investment, Boston Real Estate | Leave a Comment
The National Association of Realtors has reported a 6.3 percent increase in pending transactions from March to April. The news is based on the Pending Home Sales Index, which is based on contacts signed during a set period of time. April’s numbers are the highest point since last October, but they are still 13.1 percent less than April of last year.
That said, the Northeast index doesn’t look quite as rosey as the national one. In the Northeast, the index actually declined by 1.9 percent in April comparted to March.
Regent Hotel backs out of Battery Wharf project in the 11th hour
June 11, 2008 | Filed Under Real Estate News, Boston Condos, Boston Luxury Developments, Boston Real Estate | Leave a Comment
The Regent Hotel has officially left the Battery Wharf project up the Charles without a paddle. The premier hotel operator and the $300m luxury hotel and residence project along Boston’s waterfront will part ways due to “philosophical differences.” The Regent’s departure will leave the Battery Wharf without an operator for it’s 150-room hotel, it will also leave them without a provider for the ultra-luxury amenities and services promised to all the home buyers who plopped down millions for a slice of “Utopia Engineered.” This comes at exactly the worst possible moment. Only 22 of the 105 condominiums offered have sold, with another 40 under-agreement. The Battery Wharf may have some issues with hesitant home buyers who will not want to close when they see they are not getting what they were promised. In addition, the development may face difficulty selling the remaining units if they don’t bring a premier hotel provider on board a.s.a.p.
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