Columbus Center Project moving forward
April 14, 2008 | Filed Under Real Estate News, Commercial Real Estate, Boston Condos, Boston Luxury Developments, Boston Real Estate | Leave a Comment
The 1.3 million-square-foot mixed-use development to be built above the Mass Turnpike seems to be pushing forward. Despite financial setbacks, Columbus Center’s developer said the $800 million project is still alive and well.”We have no intention of abandoning it,” Roger Cassin, managing partner of WinnDevelopment, told Banker & Tradesman in an interview.
The Columbus Center Project will consist of 443 Condominiums, a 162-room hotel, three parks and 39,400 square feet of retail space. The project will stradle the Back Bay, South End and Bay Village neighborhoods of Boston. Other new developments in the area are 285 Columbus Lofts and The Clarendon.
Some Cities Still Boast Low Foreclosure, Unemployment Rates
April 12, 2008 | Filed Under Real Estate News, Mortgage and Finance | Leave a Comment
MainStreet.com compared U.S. foreclosure data from RealtyTrac to employment rates supplied by the Bureau of Labor Statistics to compile a list of five cities that are surviving the mortgage and foreclosure problems best. All five cities had low foreclosure rates and a February unemployment rate lower than or equal to the national average of 4.8 percent. They are: Lubbock, Texas; Charlottesville, Va.; York/Hanover, Pa.; Tuscaloosa, Ala.; and Burlington, Vt.
NAR Predicts Rising Pace of Existing-Home Sales
April 8, 2008 | Filed Under Real Estate News | Leave a Comment
The pace of existing-home sales is expected to rise to 5.9 million in the fourth quarter, a jump from the first-quarter pace of 4.9 million, according to NAR’s latest housing forecast released this morning. But sales of existing homes for all of 2008 are forecast to reach 5.39 million, 4.6 percent below the 2007 level, before increasing 6.6 percent to 5.74 million in 2009. The median existing-home price is expected to fall 1.4 percent to $215,800 in 2008 before recovering 3.7 percent to $223,800 next year. National median existing-home prices fell 1.4 percent last year.
New-home sales are expected to fall 25.7 percent in 2008 to 576,000, then rise 4.6 percent in 2009 to 602,000. However, housing starts, including multifamily units, are forecast to drop 26.3 percent to 999,000 this year, then fall another 0.5 percent to 994,000 in 2009. The median new-home price is likely to decrease by 3.6 percent to $238,400 this year, and then increase 4.0 percent to $247,800 next year.
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in February, was 84.6, a 1.9 percent decrease from 86.2 in January and a 21.4 percent decline from February 2007. The Northwest was the only region that saw an increase in pending home sales, rising 3.2 percent, but it was still 25.4 percent below levels from a year ago. The Midwest index decreased 3.7 percent, which is 17.4 percent lower than a year ago. In the South, the index fell 5.5 percent for the month and 30.0 percent for the year, while the West decreased 9.8 percent in February and 17.1 percent from last year.
“The economy will not grow in the first half of the year,” said Lawrence Yun, NAR chief economist. “However, the combination of recent fiscal stimulus enactment and the lagged impact of monetary policy will help jump start the economy in the second half.”
Zillow Enters the Mortgage Business
April 8, 2008 | Filed Under Real Estate News, Mortgage and Finance | 2 Comments
This might seem like an odd time for a company to break into the mortgage lending business, but that is exactly what online real estate marketer Zillow.com is doing. The company announced that its Zillow Mortgage Marketplace will offer borrowers an open forum to request custom loan quotes directly from registered lenders, anonymously and without hassle. The Marketplace also includes a public feedback system where borrowers can rate the lenders they choose to contact. The process makes it easier for borrowers to compare multiple loan quotes and make more informed decisions about their lender and loan, the company says.
Borrowers complete an online Request for a Quote (RFQ) with their financial details, but are not required to provide any personal information about themselves, such as their name, address, phone number or Social Security number. Once they submit their request, lenders that are registered with Zillow can submit loan quotes. The borrower decides which lender(s) to contact, if any, thereby maintaining control of the entire process.
Fannie Mae Tightens Mortgage Rules
April 5, 2008 | Filed Under Real Estate News, Mortgage and Finance | Leave a Comment
Fannie Mae will soon require a minimum credit score of 580 for most loans that it buys on an individual basis, the company announced earlier this week. The new rule is one of several new lending standards that Fannie Mae is implementing to stem the tide of default-related losses. In the past, Fannie Mae did not require a minimum credit score. The company said that it will still acquire loans with lower credit scores in certain circumstances.
Other rule changes include:
• Increasing the time period needed for borrowers to re-establish their credit history after a foreclosure from four years to five years.
• Allowing loan service firms — the companies that collect loan payments — to increase the forbearance period from four months to as much as six months to give borrowers more time to seek alternatives to foreclosure. Fannie Mae hopes the move will reduce the number of loans that it needs to recognize as losses.
• Adding fees for riskier types of loans.
Some Housing Markets Show Improvement: Report
April 5, 2008 | Filed Under Real Estate News, Real Estate Trends and Statistics, Boston Real Estate | Leave a Comment
While most U.S. cities posted home price declines in January compared to a year ago, some markets are faring better, according to the latest housing market report by Radar Logic, a real estate data and analytics company. Of the 25 Metropolitan Statistical Areas (MSAs) examined, only two cities — Charlotte, N.C. and New York City — showed year-over-year appreciation with 3.9 percent and 2.0 percent, respectively. Milwaukee and Philadelphia posted virtually no change for the year, while Seattle (-1.4 percent) showed year-over-year depreciation for the first time. While 21 of the 25 MSAs showed declines compared to a year ago, nine posted returns above or equal to those recorded in December 2007.
The MSAs with the largest year-over-year depreciation in January were markets that experienced high appreciation rates during the housing boom: Sacramento, Calif. (-27.8 percent); Las Vegas (-25.4 percent); San Diego (-21.2 percent); Los Angeles (-16.6 percent); and Tampa, Fla. (-15.6 percent).
The study also showed that many MSAs posted impressive appreciation rates compared to five years ago. Leading cities were Miami (10.4 percent); Seattle (9.4 percent); Washington D.C. (9.1 percent); New York (9.0 percent); and Los Angeles (8.6 percent).
According to the report, Boston is now among the trailing metro areas.
Mortgage Scams Target Homeowners
March 30, 2008 | Filed Under Real Estate News, Mortgage and Finance | Leave a Comment
Earlier this week, federal prosecutors charged 19 suspects in a nationwide mortgage scam that robbed cash-strapped homeowners of their home equity and title, reports the Los Angeles Times. The defendants defrauded homeowners using foreclosure rescue pitches and so-called equity stripping schemes to steal $12.6 million and obtain the titles to more than 100 homes. In one variation of the alleged crime, the defendants contacted homeowners who were behind on their mortgage payments and offered to help them avoid foreclosure.
Financial institutions are on pace to report 60,000 incidents of suspected mortgage fraud this year, up from 28,000 in 2005, the Times reports. The FBI says “house stealing,” which involves both identity theft and mortgage fraud, is the newest crime hurting homeowners. In one variation of the scam, crooks target a property — often a vacation home or rental property — and steal the owner’s identity. After they transfer the property deed to themselves, they sell it and pocket the profits, without the knowledge of the original owners.
New Home Sales Continue to Slip
March 26, 2008 | Filed Under Real Estate News | Leave a Comment
Sales of new single-family homes were at a seasonally adjusted rate of 590,000 in February, a 1.8-percent slip from a month ago and nearly 30 percent below the February 2007 rate of 840,000, the U.S. Commerce Department reported this morning.
The median sale price of a new home was $244,100 in February, up from $225,600 the previous month but down 2.7 percent from $250,800 recorded a year ago. There were 471,000 new homes available for sale at the end of February, representing a 9.8-month supply at the current sales rate. There was an 8.1-month supply a year ago.
Louisiana Home to Fastest-Growing Counties
March 23, 2008 | Filed Under Real Estate News, Real Estate Trends and Statistics, Real Estate Investment | 1 Comment
Two Louisiana parishes were the nation’s fastest-growing counties in 2007, according to recent population estimates by the U.S. Census Bureau. St. Bernard County, which led the nation in population loss after Hurricane Katrina in 2005, saw its population increase 42.9 percent from July 2006 to July 2007. Orleans county, also hit by Katrina, rose 13.8 percent in the same period. Nine of the top ten fastest-growing counties were located in the South or West.
Of the ten counties that had the greatest numerical increase in population, half were in Texas, two were in North Carolina, one was in California and one was in Nevada. Maricopa County, Ariz. led the pack with an increase of 102,000 residents between 2006 and 2007.
Although the population in Los Angeles County decreased by 2,000 from 2006, it remained the nation’s most populous county with 9.9 million people.
Fed cuts rates by 3/4 of a point
March 18, 2008 | Filed Under Real Estate News, Real Estate Trends and Statistics, Real Estate Investment, Mortgage and Finance, Boston Real Estate | Leave a Comment
The Fed threw in a change-up today, instead of its usual fastball. While the Fed funds futures market was pricing in a 94 percent probability of a 100 basis point cut today, the FOMC instead settled on a less aggressive 75 basis point cut in the Fed funds rate. Today’s action brings the Fed Funds target rate down to 2.25 percent, three percentage points lower than where it was last August. The real Fed funds rate, which adjusts for current inflation, is at a negative 1.75 percent — a highly accommodative monetary policy stance. The Fed concurrently cut the discount rate 75 basis points, bringing that borrowing rate down to 2.5 percent.
The Fed wanted to remind the market today that they are in charge of monetary policy and not the Fed funds futures market. The Fed is subtly trying to reassert itself and disabuse the markets that whatever it asks for it gets.
It is also clear that there is increasing concern among some on the FOMC that free-wheeling rate cuts are creating a significant problem with the Fed goal of anchoring inflation expectations. There were two votes against. Both Plosser and Fisher wanted less aggressive action. Every time the Fed cuts rates the U.S. dollar takes it on the chin, threatening higher import and price inflation. Moreover, record oil and gold prices seem at odds with a deflationary spiral scenario that would warrant a one-percentage point or lower Fed funds rate.
The Fed is hoping that its efforts to restore market liquidity and ease the credit crunch through more direct measures such as the TAF, TSLF and Discount window will mitigate the need for the Fed to continue to pull its most powerful, but bluntest monetary policy leaver, the Fed funds target rate.
Bottom-line: the Fed is still open to further rate cuts if the economic and credit outlook continues to deteriorate, but we are much closer to an end point on Fed easing than we were at the start of the year. We expect the Fed to cut again in April, bringing the Fed funds target rate to 2.0 percent, though beyond that there will need to be more signs that the economic and financial downturn is still intensifying and that unemployment is rising rapidly.
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