A quarter of today’s renters have no intention of ever buying a home. A third of the remaining 75 percent plan to wait two or more years. Read the entire article by clicking on the REALTOR®Mag link below.
Resource: REALTOR®Mag
August 26, 2010
Flippin’ Investors
Equity firms and groups of wealthy investors are having difficulty in finding solid investments so many have turned to flipping. Buying foreclosed properties, fixing them up and then selling them has become the investment of the day.
However the profits from flipping are diminishing as more people seek foreclosed properties. The average difference between a home’s sale price at auction and its actual value was 28 percent in January of ’09 but is now 21.6 percent.
As these investors buy up foreclosed properties, we stand to gain for they help reduce the inventory of low priced properties.
Resource: REALTOR®Mag
August 25, 2010
More On Private Transfer Fees
Opposition is building to private transfer fees. We first posted on this subject on August 15 (“Private Transfer Fees.”)
To quote from an article in REALTOR®Mag;
Freehold Capital Partners, which has developed the program, says it has enlisted thousands of developers nationwide. It argues that this is good for the economy because it will provide builders with more capital.
Seems to me if the builders need more capital, they either raise the price of the homes they are selling or go get a loan. This does nothing for the home buyer and it presumes that the builder will be around for 99 years.
Resource: REALTOR®Mag
Benson AZ Price Reduction
725 S. Si Tengo HUD site built home in Benson, AZ.
Site built HUD 1987 home at 725 S. Si Tengo Drive, Benson, Cochise County, AZ. HUD reduced the price of this site built home 10 percent. It is now on the market at $117,900. 3 beds/2 baths (split plan), 1733 sq ft on 0.22 acres. Two car garage, home office, living room fireplace. For additional photos and information click on “Featured Properties” tab or here.
Resource: HUD
August 24, 2010
Existing Home Sales Fall
The big news today is the major fall in existing home sales. The first article I saw was from the BBC. Then The New York Times picked it up and then REALTOR®Mag.
The main point of the reports is that July existing home sales fell to an annualized rate of 3.83 million units down from a revised June level of 5.26 million units in June. This is the lowest level since May of 1995.
Declining Market Prediction
Timing! This morning we published a post titled “At Risk Cities” regarding the cities most likely to face a worsening economy. Now we have a list of metro areas likely to experience home price declines.
PMI Mortgage Insurance Co. tracks pricing and market conditions in 384 metropolitan markets. Their analysis identifies the following 20 “riskiest markets.” The number in parenthesis is the probability of further price declines.
- Miami-Miami Beach-Kendall, Fla. (99.9 percent)
- Las Vegas-Paradise, Nev. (99.9)
- Ft. Lauderdale-Pompano-Deerfield, Fla. (99.9)
- Riverside-San Bernardino-Ontario, Calif. (99.9)
- Tampa-St. Petersburg-Clearwater, Fla. (99.9)
- Orlando-Kissimmee-Sanford, Fla. (99.9)
- Jacksonville, Fla. (99.9)
- Los Angeles-Long Beach-Glendale, Calif. (99.9)
- Santa Ana-Anaheim-Irvine, Calif. (99.7)
- Phoenix-Mesa-Glendale, Ariz. (99.4)
- San Diego-Carlsbad-San Marcos, Calif. (98.8)
- Detroit-Livonia-Dearborn, Mich. (98.7)
- Sacramento-Arden-Rovesville, Calif. (98)
- Newark-Union, N.J.-Penn. (94.7)
- Edison-New Brunswick, N.J. (94.7)
- Providence-New Bedford-Fall River, R.I.-Mass. (93.6)
- Oakland-Fremont-Hayward, Calif. (91.9)
- Nassau-Suffolk, N.Y. (91.5)
- New York-White Plains-Wayne N.Y.-N.J. (90.4)
- San Jose-Sunnyvale-Santa Clara, Calif. (90)
Resource: REALTOR®Mag
At Risk Cities
Andrew Gledhill, economist with Moody’s has identified 22 cities most susceptible to a worsening economy. At first, one would expect to see cities in Arizona, California and Nevada on the list. Cities in those states generate the gloomiest news. But not so.
The biggest risk is in manufacturing. A community with an industrial economy stands to fall the most. The cities are;
- Missoula, Mont.
- Salem, Ore.
- Idaho Falls, Idaho
- Lake County-Kenosha County, Ill.-Wisc.
- Lafayette, Ind.
- Wichita, Kan.
- Hot Springs, Ark.
- Pine Bluff, Ark.
- Little Rock, Ark.
- Wichita Falls, Texas
- Akron, Ohio
- Charleston, W.Va.
- Macon, Ga.
- Gadsden, Ala.
- Gulfport-Biloxi, Miss.
- Mobile, Ala.
- Utica-Rome, N.Y.
- Lebanon, Pa.
- Springfield, Ohio
- Wilmington, N.C.
- Anderson, S.C.
- Athens-Clark County Ga.
Resource: REALTOR®Mag
August 23, 2010
These Guests Won’t Leave
The New York Times article on dead guests residing at the Copper Queen Hotel in Bisbee, AZ is here.
Resource: The New York Times
HUD Price Reduction – Douglas, AZ
Douglas 1948 site built HUD home.
Very charming 1948 site built home on 12th Street in Douglas. This property came back on the market on August 20 with a price reduction, now $43,600. 3 beds/1 bath, 1429 sq ft on 6970 sq. ft. city lot. This home was built when pride of craftsmanship was a trademark of home construction. There are repairs to be made and the home is eligible for the 203(k) repair program. For additional photos, property condition report and other information click on “Featured Properties” tab or here.
Home may be located in a Historic District, buyer to verify.
Resource: HUD
Office Leasing Activity Is Up, Or Is It?
An increase in the leasing of office space bodes well for the economy. It is a sign companies are expanding with job opportunities.
For the 12 months ending June, 161.3 million sq. ft. of office space was leased. This is a 5.7 percent increase for the 12 months ending in March.
But what is happening is companies are leasing the same space they had before or less. As leases expire companies are downsizing if they can and they are taking advantage of lower rentals as building owners struggle to keep space filled.
The office space vacancy rate is 17.4 percent, the highest in 15 years.
Resource: REALTOR®Mag
