Real Estate Report
House lawmakers approved a $6 billion measure that aims to provide rebates
to homeowners who invest in energy efficiency improvements. The bill,
officially known as the Home Star Energy Retrofit Act but better known as
'cash for caulkers,' has been touted by President Obama since December as
one of the signature pieces of his administration's larger job-creation
strategy. The act 'is a common-sense bill that will create jobs, save
consumers money, and strengthen our economy,' President Obama said after the
House passed the measure. 'We have workers eager to do new installations and
renovations, and factories ready to produce new energy-efficient building
supplies.' House Speaker Nancy Pelosi, D-Calif., estimates that the
legislation will create nearly 168,000 jobs in construction, manufacturing,
and retail. The vote simply authorizes the creation of the program; it does
not appropriate the funds needed to run it. Source: Associated Press
Unmarried women accounted for 21% of home purchases in 2009, while unwed
males were 10% of the buyers, according to a National Association of
Realtors report in November. It's a dramatic shift from 1981, the first year
the numbers were tracked, when single women and men each accounted for 10%
of home sales. Single women have held steady at the 20 % mark for more than
five years, yet when the Urban Land Institute hosted its annual real-estate
conference in late April, analysts had to remind the audience to expect big
numbers from young, single female buyers. 'I've given some of my
[home-building] clients lessons on how to be gender friendly,' said Brooke
Warrick, president of the market research firm American Lives. He reminded
sellers to treat young women as viable buyers, not bystanders, by doing
something as simple as handing them a brochure when they enter a for-sale
home. These women tend to stake their claim on homes in the
1,700-square-foot range predominantly in the Washington, D.C., California
and Texas markets, Warrick said. After segmenting the market, Warrick
noticed that young women, especially those rooted in secure industries like
health care, make more money than their male peers. Source: MarketWatch
Can it be possible? Despite the housing bust and high foreclosure rates, in
some areas real estate agents are complaining that they don't have enough
homes to sell. There is currently an eight-month supply of homes on the
market, meaning that, at the current sales pace, it would take eight months
to run through the backlog. That's still a lot compared to the six-month
supply that is expected in a normal market, but it is much better than it
was. In March, there were nearly 2% fewer homes on the market than there
were a year ago, and 21.7% fewer than the record of 4.6 million in July
2008. In some areas, supplies are even bidding-war tight. In Denver, for
example, supply has fallen to 5.7 months from 6.2. In Phoenix it has
declined to 4.5 from 5.2; and in San Francisco inventory has halved, to 3.2
months from 6.5 last March. In California, almost all cities have a short
supply of single-family homes. That's especially true in the lower-priced
categories, according to Leslie Appleton-Young, chief economist for the
California Association of Realtors. The supply of homes that sell for less
than $300,000 is at 3.2 months statewide, down from an already low 3.3 month
supply 12 months ago. Inventory of moderately priced homes, those between
$300,000 and 500,000, fell to 4.2 months in March, down from 4.5 months in
March 2009. There are plenty of more expensive homes in California, but this
inventory is going quick: inventory for million-dollar-plus homes has
dropped from 21.6 months to 10.9 months. Source: CNN/Money.com
May 18 2010
Real Estate News
Pending home sales increased again in March, affirming that a surge of home sales is unfolding for the spring home buying season, according to the National Association of Realtors®. The Pending Home Sales Index, a forward-looking indicator based on contracts signed in March, rose 5.3 percent to 102.9 from 97.7 in February, and is 21.1 percent above March 2009 when it was 85.0; this follows an 8.3 percent increase in February. The data reflects contracts and not closings, which usually occur with a lag time of one or two months. Lawrence Yun, NAR chief economist, said favorable affordability conditions have been working with the tax credit. Clearly the home buyer tax credit has helped stabilize the market. In the months immediately following the expiration of the tax credit, we expect measurably lower sales, he said. Later in the second half of the year, and into 2011, home sales will likely become self-sustaining if the economy can add jobs at a respectable pace, and from a return of buyer demand as they see home values stabilizing. Source: National Association of Realtors
When a condo developer goes into bankruptcy, owners of previously sold units can be left with some troubling questions. Here are the answers to a few of them: If the lender buys title to the property at the auction sale, a frequent occurrence, the law considers the lender just like it does other owners and requires that the lender pay the monthly assessment; The lender who buys the units also would be responsible for the taxes on the units he owns; A clubhouse or similar property would be jointly owned by all the owners of all units and taxed as part of the value of those units. Source: Charlotte Observer
The expiration of the home buyer tax credits won't deter optimistic households who believe the market is improving, according to a survey released by Prudential Real Estate and Relocation Services. More than 90 percent of those surveyed believe the home buyer tax credits have helped both first-time buyers and the overall housing market, but 65 percent say that end of tax credits won't reduce their personal interest in buying a home. Over the next five years, 79 percent expect real estate prices to increase and 20 percent expect prices to rise substantially. Only 12 percent believe prices will decrease. Among renters, 75 percent believe owning a home is a better long-term choice for them than renting. The majority of consumers also believe that homeownership is a good investment, with 75 percent saying it is better than stocks or bonds, 72 percent preferring it to mutual funds, and 74 percent saying it surpasses savings accounts. Source: Prudential Real Estate and Relocation Services, Inc.
May 11 2010
