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?
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!
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
Urban Homeownership on the Rise: Survey
June 25, 2008 | Filed Under Real Estate Trends and Statistics, Boston Real Estate | Leave a Comment
Many homebuyers are showing an increased interest in urban living sparked by the high cost of gasoline, according to a new Coldwell Banker survey. Nearly all (96 percent) of the 903 sales associates surveyed said their clients are concerned about rising gas and oil prices, and 78 percent said fuel costs have rekindled an interest in city living, especially in downtown areas.
Concerns about long commute times and other transportation worries are helping drive this trend, the study finds.
- 81 percent said clients wanted to reduce their work commute
- 75 percent said clients wanted to be able to walk to more places
- 54 percent said clients wanted better access to public transportation
The associates surveyed also reported that 84 percent of clients expressed an interest in properties with a home office, and 64 percent said their clients look for “green” amenities to save on HVAC and electricity expenses.
Survey Reveals Consumer Moving Trends
June 25, 2008 | Filed Under Real Estate Trends and Statistics | Leave a Comment
While an estimated 40 million Americans move to a new residence each year, a larger proportion of them are moving from homeownership to renting (19 percent) than from renting to owning (15 percent), according to a new survey by Relocation.com. Only 14 percent of these consumers moved into a newly purchased home from one they had previously owned. Most moves occur due to career (new jobs or promotions) or lifestyle changes (downsizing or retirement), the study finds.
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.
Home Price Declines Widespread, But Smaller Markets Fare Better: Study
June 5, 2008 | Filed Under Real Estate News, Real Estate Trends and Statistics | 1 Comment
Single-family home prices fell 6.7 percent during the first quarter of 2008, marking the third straight quarterly decline, according to Global Insight, an economic analysis consulting firm. In its quarterly House Prices in America study, 262 of the 330 housing markets surveyed experienced declines, accounting for 84 percent of all housing units and 89 percent of real estate value. But only eight housing markets were determined to be overvalued, down from a peak of 53 markets in 2006.
The steepest declines occurred in California, Florida and Michigan, which had 45 of the 50 worst performing metro areas for the period. The top markets with price increases during the first quarter had populations of less than 300,000: Ithaca, N.Y.; Billings, Mont.; Houma, La.; and Odessa, Texas.
April New-Home Sales Rise
May 27, 2008 | Filed Under Real Estate News, Real Estate Trends and Statistics | 1 Comment
Sales of new single-family homes rose 3.3 percent in April to a seasonally adjusted annual rate of 526,000, according to data released this morning by the U.S. Commerce Department. This is 42.0 percent below the estimate of 907,000 from April of last year. The median sale price of a new home increased 1.5 percent from $242,500 in April 2007 to $246,100 last month. There were 456,000 new homes available for sale at the end of April, which represents a 10.6-month supply at the current sales rate, down from the 11.1-month supply in March, but up from a 7.4-month supply last year.
April Existing-Home Sales Fall, Inventory Rises
May 23, 2008 | Filed Under Real Estate News, Real Estate Trends and Statistics, Real Estate Investment, Mortgage and Finance | Leave a Comment
Existing-home sales fell to a seasonally adjusted annual rate of 4.89 million units in April, which is 1.0 percent below the 4.94 million units in March and 17.5 percent below the 5.93 million-unit level a year ago, NAR announced this morning. The median existing-home price in April was $202,300, down 8.0 percent from April 2007.
Total housing inventory increased 10.5 percent last month to 4.55 million homes available for sale. This represents an 11.2-month supply, up from a 10.0-month supply available last month.
Existing-home sales increased month-over-month in the West by 6.4 percent, remained unchanged in the South, and decreased in the Northeast and Midwest by 4.4 percent and 6.0 percent respectively. All regions saw decreases from a year ago: 15.3 percent in the West; 18.6 percent in the South; 14.7 percent in the Northeast; and 19.7 percent in the Midwest.
NAR President Richard F. Gaylord pointed to some good signs in the market. “In the past week, Freddie Mac and Fannie Mae announced that they were eliminating their ‘declining market’ policies, effective June 1,” he said in a statement. “This means consumers across the country will have access to safe, affordable financing with down payments of only 5 percent on most mortgages, with 100 percent financing available on some loan products, and we could see an upturn in home sales this summer.”
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