Source: Housingwire
By Kerri Ann Panchuk
The West Coast states of Oregon and California experienced the largest annual drops in unlisted foreclosures in the first quarter, according to RealtyTrac.
Could the steep declines be attributed to the California Homeowner Bill of Rights and new foreclosure laws in Oregon?
RealtyTrac executives, and foreclosure attorneys, previously suggested default activity could shift in those two states with new state laws creating more legal liabilities for foreclosing parties.
Daren Blomquist with RealtyTrac has conceded in the past that new foreclosure laws – including mandatory mediation in Oregon and a new private right of action for foreclosure plaintiffs in California – could eventually slow foreclosures as financial firms rethink their strategies in those states.
Oregon also is waiting for the state Supreme Court to rule on a precedential Mortgage Electronic Registration Systems case that could impact foreclosure filings.
The latest first-quarter numbers from RealtyTrac definitely show similar trends in both states.
Annually the number of unlisted foreclosures – or distressed properties not yet up for sale – declined 50% in Oregon and 31% in California. This means fewer foreclosures are waiting in the wings in those states, a deep drop from a year ago.
Generally the number of unlisted foreclosures is falling more dramatically in nonjudicial foreclosure states, which California technically is.
But compare California to Texas and Arizona — both nonjudicial foreclosure states — and the drops in the West Coast states seem much more extreme. Texas and Arizona experienced lighter 15% to 11% annual drops in unlisted foreclosures year-over-year, respectively.
The national situation shows the inventory of listed homes in some stage of foreclosure or bank-owned declined 43% annually in the first quarter. And this is occurring at a time of an inventory shortage.
But that decline only accounts for listed foreclosure inventory. Shadow inventory, or unlisted foreclosures still in some stage of the default process, actually increased 12% year-over-year nationwide, RealtyTrac says.
RealtyTrac believes this could be good news for states starving for inventory.
"Many of these properties will be listed for sale as short sales in the next six to 12 months, or go through the foreclosure process and eventually be listed for sale as bank owned in the next 12 to 18 months," the data agency said.
"Some of the biggest increases in unlisted foreclosure inventory were in New York, Florida, New Jersey, Washington and Illinois."
But in California and Oregon, unlisted foreclosures – or the shadow inventory is on the decline – which may suggest on the back-end, the system is readjusting itself in a manner that is specific to those two states.
URL to original article: http://www.housingwire.com/news/2013/03/29/oregon-california-record-largest-declines-unlisted-foreclosures
For further information on Fresno Real Estate check: http://www.londonproperties.com
Friday, March 29, 2013
Thursday, March 28, 2013
With low vacancies, Valley apartment sales strong
Source: The Business Journal
Written by Chuck Harvey
A move by Fresno-Clovis residents toward rental housing has kept vacancies down and sales of apartment buildings strong and competitive. However, low rents, which have attracted many residents to apartments, have also slowed interest in construction of new apartment projects. Still, some large higher-end apartments are being built on the belief that economy of scale will make the investment in apartment construction profitable. Phoenix-based Hendricks Berkadia Apartment Real Estate Advisors predicts that new apartment completions in the Central Valley will trend up to nearly 1,800 units in 2013, subsiding to about 1,250 units in 2014. The firm also predicts that occupancy will continue to improve. It expects the average vacancy rate will fall below 5 percent late this year and continue dropping to about 4 percent in 2014. Tight home market For residents, a lack of resale home availability in the resale market has bolstered interest in apartments. But attractive rents and availability of energy efficient apartments has also helped fill rental units. Apartment vacancies have dropped, especially for low-income and upscale apartments. Experts estimate that 55 percent of Fresno-Clovis area residents now rent, while 45 percent own homes. Apartment vacancies in Fresno County fell from 6 percent in 2011 to 5.4 percent in 2012. Average rent rose from $802 per month to $825 over the same period. Besides falling vacancies, buyer-investors are attracted to reasonable apartment prices and record-low interest rates that make mortgaged apartment purchases more cost effective. That has reduced the number of apartment buildings for sale. “There are not many available, but owners will sell if the price is right,” said Ron Stumpf, broker with Ron Stumpf & Co. In 2012, 17 major apartment transactions of more than $500,000 took place in Fresno. Average price per unit was about $50,000 according to Hendricks Berkadia Apartment Real Estate Advisors. Stumpf said apartment prices have been rising by about 10 percent a year. He said pricing peaked in 2006-2007 and hit bottom in 2011. Tower District has highest prices Although much of new apartment construction is in north Fresno and Clovis, Stumpf said the highest price per unit for apartments is in the Tower District of old Fresno. Many of the existing apartments there are older and harder to maintain, he said. Still it’s where many residents want to live, Stumpf said. The Fig Garden area of Fresno to the north is also a popular place to rent, he added. Wherever the location, buyers have to be sensitive to the things that attract renters. Prospective apartment renters want a dwelling that is energy efficient, is well located and has some upscale features like plush upgraded carpeting. “Locally, people are renting apartments 10 times faster than they were two years ago,” said Brad Hardie, president and owner of Regency Property Management in Fresno. “Apartments renting for $500 to $550 (a month) with one or two beds are doing really good. “We are blowing them out” Regency Property Management manages about 1,300 apartment units in the area. In fixing up apartments, the company spends several thousands dollars on upgraded features that make the apartment more attractive, Hardie said. He said the payoff is a low vacancy level, he said. Vacancies moving lower An example is the 106-unit Stonemark Homes apartment complex in Fresno. Managed by Regency Property Management, the apartments currently have only two vacant units. Hardie said that although Fresno has plenty of apartment inventory, owners keep them rented out by lowing rent slightly and providing some extra features. “With nice carpet and paint and lower rent, we see bigger demand,” he said. Generally, renters are willing to pay $550 to $700 a month for two beds and $895 to $1,100 per month for three beds, Hardie said. He said most apartments will fill up if the owner goes the extra step and markets it correctly. In terms of what is the best size of an apartment building for greatest profitability, disagreement exists. Hardie insists that smaller apartment buildings are in greater demand than larger ones. He believes that a 10-unit to 15-unit building provides the best bang for the buck. That is because as apartments get larger, so do the costs to run them. “Water bills and management fees go up,” he said. Big or small Robin Kane, founder of RCK Organization and senior vice president of Hendrics & Partners in Fresno, sees it differently. “Buyers are looking for larger properties,” he said. Kane points out that economies of scale and a lower cost per door for larger apartments makes them the better deal. Meanwhile the cost of purchasing an apartment building has crept upward. A four-plex that cost $30,000 a door last year costs $50,000 a door this year, Hardie said. That’s because of high demand, he said. At the same time, rents have held fairly steady. Kane said low-income apartments sell extremely well, but buyers normally need incentives or a tax break to profit from them. Overall, the apartment market has enjoyed some good years, Kane said. “It has been pretty robust,” he said. “It started when the recession hit.” And faced with higher payroll taxes and soaring gasoline prices, lower priced apartments are attractive to families, he said. That has bolstered demand among investor-buyers, Kane said. Purchases of apartments by investors almost doubled from 2010 to 2012, he said. Purchases by investors are up about 30 percent this year. Kane pointed out that Hendrics & Partners handled the largest apartment sale so far this year. It involved the sale of four Fresno apartment complexes — Cedar Creek, Redwood Canyon, Sequoia Ride and Sycamore Heights — from Decron Properties of Los Angeles to Omninet Capital of Beverly Hills for $14.7 million. Continue to thrive Adam Goldfarb, vice president of the multifamily division of management firm Manco Abbott in Fresno, agrees that the local apartment and rental home market is alive and well. “It has been strong for a while,” he said. “This is the busy season and there ‘s a lot of turnover. Still, apartments seem to fill up with new people.” Manco Abbott manages several new apartments including the 100-unit, 55-and-over development called The Fountains at Alluvial at Fowler and Alluvial avenues in Clovis and the 122-unit The Shires Luxury Apartments near Nees Avenue and 9th Street in Clovis. The Fountains at Alluvial offers one- to-three bedroom units ranging from 900 square feet to 2,026 square feet with rents from $1,130 to $1,725. It is still being constructed and is about one-third rented, Goldfarb said. The Shires Luxury Apartments features one- to three-bedroom units from 932 square feet to 1,455 square feet with rents from $1,200 to $1,600. Goldfarb said The Shires has features like garages, indoor laundry and ceramic floor tiles, which are not usually found in apartments. Goldfarb added that in all, Manco Abbott manages 4,000 apartment units in the area. And 75 percent of its tenants are under the age of 34. Most of those people rent apartments out of choice and not because they lost a home or are unable to purchase a home, Goldfarb said.
URL to original article: http://www.thebusinessjournal.com/news/real-estate/5474-with-low-vacancies-valley-apartment-sales-strong
For further information on Fresno Real Estate check: http://www.londonproperties.com
Written by Chuck Harvey
A move by Fresno-Clovis residents toward rental housing has kept vacancies down and sales of apartment buildings strong and competitive. However, low rents, which have attracted many residents to apartments, have also slowed interest in construction of new apartment projects. Still, some large higher-end apartments are being built on the belief that economy of scale will make the investment in apartment construction profitable. Phoenix-based Hendricks Berkadia Apartment Real Estate Advisors predicts that new apartment completions in the Central Valley will trend up to nearly 1,800 units in 2013, subsiding to about 1,250 units in 2014. The firm also predicts that occupancy will continue to improve. It expects the average vacancy rate will fall below 5 percent late this year and continue dropping to about 4 percent in 2014. Tight home market For residents, a lack of resale home availability in the resale market has bolstered interest in apartments. But attractive rents and availability of energy efficient apartments has also helped fill rental units. Apartment vacancies have dropped, especially for low-income and upscale apartments. Experts estimate that 55 percent of Fresno-Clovis area residents now rent, while 45 percent own homes. Apartment vacancies in Fresno County fell from 6 percent in 2011 to 5.4 percent in 2012. Average rent rose from $802 per month to $825 over the same period. Besides falling vacancies, buyer-investors are attracted to reasonable apartment prices and record-low interest rates that make mortgaged apartment purchases more cost effective. That has reduced the number of apartment buildings for sale. “There are not many available, but owners will sell if the price is right,” said Ron Stumpf, broker with Ron Stumpf & Co. In 2012, 17 major apartment transactions of more than $500,000 took place in Fresno. Average price per unit was about $50,000 according to Hendricks Berkadia Apartment Real Estate Advisors. Stumpf said apartment prices have been rising by about 10 percent a year. He said pricing peaked in 2006-2007 and hit bottom in 2011. Tower District has highest prices Although much of new apartment construction is in north Fresno and Clovis, Stumpf said the highest price per unit for apartments is in the Tower District of old Fresno. Many of the existing apartments there are older and harder to maintain, he said. Still it’s where many residents want to live, Stumpf said. The Fig Garden area of Fresno to the north is also a popular place to rent, he added. Wherever the location, buyers have to be sensitive to the things that attract renters. Prospective apartment renters want a dwelling that is energy efficient, is well located and has some upscale features like plush upgraded carpeting. “Locally, people are renting apartments 10 times faster than they were two years ago,” said Brad Hardie, president and owner of Regency Property Management in Fresno. “Apartments renting for $500 to $550 (a month) with one or two beds are doing really good. “We are blowing them out” Regency Property Management manages about 1,300 apartment units in the area. In fixing up apartments, the company spends several thousands dollars on upgraded features that make the apartment more attractive, Hardie said. He said the payoff is a low vacancy level, he said. Vacancies moving lower An example is the 106-unit Stonemark Homes apartment complex in Fresno. Managed by Regency Property Management, the apartments currently have only two vacant units. Hardie said that although Fresno has plenty of apartment inventory, owners keep them rented out by lowing rent slightly and providing some extra features. “With nice carpet and paint and lower rent, we see bigger demand,” he said. Generally, renters are willing to pay $550 to $700 a month for two beds and $895 to $1,100 per month for three beds, Hardie said. He said most apartments will fill up if the owner goes the extra step and markets it correctly. In terms of what is the best size of an apartment building for greatest profitability, disagreement exists. Hardie insists that smaller apartment buildings are in greater demand than larger ones. He believes that a 10-unit to 15-unit building provides the best bang for the buck. That is because as apartments get larger, so do the costs to run them. “Water bills and management fees go up,” he said. Big or small Robin Kane, founder of RCK Organization and senior vice president of Hendrics & Partners in Fresno, sees it differently. “Buyers are looking for larger properties,” he said. Kane points out that economies of scale and a lower cost per door for larger apartments makes them the better deal. Meanwhile the cost of purchasing an apartment building has crept upward. A four-plex that cost $30,000 a door last year costs $50,000 a door this year, Hardie said. That’s because of high demand, he said. At the same time, rents have held fairly steady. Kane said low-income apartments sell extremely well, but buyers normally need incentives or a tax break to profit from them. Overall, the apartment market has enjoyed some good years, Kane said. “It has been pretty robust,” he said. “It started when the recession hit.” And faced with higher payroll taxes and soaring gasoline prices, lower priced apartments are attractive to families, he said. That has bolstered demand among investor-buyers, Kane said. Purchases of apartments by investors almost doubled from 2010 to 2012, he said. Purchases by investors are up about 30 percent this year. Kane pointed out that Hendrics & Partners handled the largest apartment sale so far this year. It involved the sale of four Fresno apartment complexes — Cedar Creek, Redwood Canyon, Sequoia Ride and Sycamore Heights — from Decron Properties of Los Angeles to Omninet Capital of Beverly Hills for $14.7 million. Continue to thrive Adam Goldfarb, vice president of the multifamily division of management firm Manco Abbott in Fresno, agrees that the local apartment and rental home market is alive and well. “It has been strong for a while,” he said. “This is the busy season and there ‘s a lot of turnover. Still, apartments seem to fill up with new people.” Manco Abbott manages several new apartments including the 100-unit, 55-and-over development called The Fountains at Alluvial at Fowler and Alluvial avenues in Clovis and the 122-unit The Shires Luxury Apartments near Nees Avenue and 9th Street in Clovis. The Fountains at Alluvial offers one- to-three bedroom units ranging from 900 square feet to 2,026 square feet with rents from $1,130 to $1,725. It is still being constructed and is about one-third rented, Goldfarb said. The Shires Luxury Apartments features one- to three-bedroom units from 932 square feet to 1,455 square feet with rents from $1,200 to $1,600. Goldfarb said The Shires has features like garages, indoor laundry and ceramic floor tiles, which are not usually found in apartments. Goldfarb added that in all, Manco Abbott manages 4,000 apartment units in the area. And 75 percent of its tenants are under the age of 34. Most of those people rent apartments out of choice and not because they lost a home or are unable to purchase a home, Goldfarb said.
URL to original article: http://www.thebusinessjournal.com/news/real-estate/5474-with-low-vacancies-valley-apartment-sales-strong
For further information on Fresno Real Estate check: http://www.londonproperties.com
Wednesday, March 20, 2013
Homebuilder ranked high by research firm
Source: The Business Journal
G.J. Gardner Homes, which has six Central Valley franchises, ranked fourth nationally for real estate franchises by market research firm the Franchise Business Review. G.J. Gardner Homes scored an 80.42 percent for its franchise satisfaction index (FSI), compared to the national average of 69.22 percent. “We are honored to have received this award,” said Greg Dettwiler, sub franchisor of G.J. Gardner California, in a release. “The FBR award is the most prestigious award a franchising system can receive because it comes directly from our franchise owners. It speaks volumes about what our franchise owners think of our business, the concept and its management.” G.J. Gardner Homes have franchises throughout North America, including the six in the Valley—Visalia, Hanford, Bakersfield, Madera County, Clovis and Fresno County.
URL to original article: http://www.thebusinessjournal.com/news/construction/5383-homebuilder-ranked-high-by-research-firm
For further information on Fresno Real Estate check: http://www.londonproperties.com
G.J. Gardner Homes, which has six Central Valley franchises, ranked fourth nationally for real estate franchises by market research firm the Franchise Business Review. G.J. Gardner Homes scored an 80.42 percent for its franchise satisfaction index (FSI), compared to the national average of 69.22 percent. “We are honored to have received this award,” said Greg Dettwiler, sub franchisor of G.J. Gardner California, in a release. “The FBR award is the most prestigious award a franchising system can receive because it comes directly from our franchise owners. It speaks volumes about what our franchise owners think of our business, the concept and its management.” G.J. Gardner Homes have franchises throughout North America, including the six in the Valley—Visalia, Hanford, Bakersfield, Madera County, Clovis and Fresno County.
URL to original article: http://www.thebusinessjournal.com/news/construction/5383-homebuilder-ranked-high-by-research-firm
For further information on Fresno Real Estate check: http://www.londonproperties.com
Tuesday, March 19, 2013
Mortgage interest deduction stays afloat with uncertain future
Souce: Housingwire
By Brena Swanson
A proposal to revamp the mortgage interest deduction for taxpayers who are homeowners created more confusion for the mortgage industry this past week. Policymakers on both sides have been toying with the idea of enacting changes to the mortgage interest deduction as a means to cut the nation's growing federal deficit. But Rep. Keith Ellison, D-Minn., threw another log into the fire this week by sponsoring a new bill that would limit the mortgage interest deduction to the first $500,000 of mortgage debt and then convert it to a 15% non-refundable tax credit. The change would hit homeowners with higher-priced mortgages the hardest. Ellison's bill suggests the shift would create $200 billion in savings over ten years. He believes the money should then be invested in the National Housing Trust Fund to provide affordable housing to communities. Mortgage Bankers Association CEO and President David Stevens questioned the proposed bill for essentially ignoring the pivotal issues that are impacting homeowners, while ignoring the budget deficit by using the deduction to pay for other government expenditures. "In any final proposal dealing with the government’s role on housing finance, we have to deal with making sure there is money available for affordable housing–wherever that line gets drawn," said Stevens. "But in isolation to support one isolated bill that is solely focused on mortgage interest deduction purely for funding affordable housing is ill-timed given the construct of the broader debate that has to happen." If any change is made, it would be a complete game changer not to consider the budget deficit first, Stevens suggested. "We have $17 trillion dollars in debt almost, and the current budget is spending a trillion more than what we take in from tax revenues," the MBA leader said. "That’s really where the focus has to be, and that's why I assume that mortgage interest deduction as a significant tax benefit to Americans will likely be on the table just like social programs and other tax structures." Meanwhile, the National Low Income Housing Coalition supprorts the bill and calls it a solution for the housing economy. "I think that we will basically spark the economy by making for low and moderate-income people to keep more of the money they have and spend less of it on housing," said Ellison. He added that America is already seeing a drop in the deficit and this act will only help in lowering it. Overall, the mortgage tax deduction is on the table, but in what form it will survive — if it survives at all — is unknown. The MBA sees tampering with it a dangerous, and perhaps unnecessary, proposition. "Other people want to go after it for other reasons and that is fine, but when I look at it from a pure tax revenue standpoint, you don’t get a lot of lift out of the mortgage interest deduction," said Stevens. "If you go too deeply, you really start hitting middle class homeowners and could ultimately strike the core of the housing recovery."
URL to original article: http://www.housingwire.com/news/2013/03/19/mortgage-interest-deduction-stays-afloat-uncertain-future
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Brena Swanson
A proposal to revamp the mortgage interest deduction for taxpayers who are homeowners created more confusion for the mortgage industry this past week. Policymakers on both sides have been toying with the idea of enacting changes to the mortgage interest deduction as a means to cut the nation's growing federal deficit. But Rep. Keith Ellison, D-Minn., threw another log into the fire this week by sponsoring a new bill that would limit the mortgage interest deduction to the first $500,000 of mortgage debt and then convert it to a 15% non-refundable tax credit. The change would hit homeowners with higher-priced mortgages the hardest. Ellison's bill suggests the shift would create $200 billion in savings over ten years. He believes the money should then be invested in the National Housing Trust Fund to provide affordable housing to communities. Mortgage Bankers Association CEO and President David Stevens questioned the proposed bill for essentially ignoring the pivotal issues that are impacting homeowners, while ignoring the budget deficit by using the deduction to pay for other government expenditures. "In any final proposal dealing with the government’s role on housing finance, we have to deal with making sure there is money available for affordable housing–wherever that line gets drawn," said Stevens. "But in isolation to support one isolated bill that is solely focused on mortgage interest deduction purely for funding affordable housing is ill-timed given the construct of the broader debate that has to happen." If any change is made, it would be a complete game changer not to consider the budget deficit first, Stevens suggested. "We have $17 trillion dollars in debt almost, and the current budget is spending a trillion more than what we take in from tax revenues," the MBA leader said. "That’s really where the focus has to be, and that's why I assume that mortgage interest deduction as a significant tax benefit to Americans will likely be on the table just like social programs and other tax structures." Meanwhile, the National Low Income Housing Coalition supprorts the bill and calls it a solution for the housing economy. "I think that we will basically spark the economy by making for low and moderate-income people to keep more of the money they have and spend less of it on housing," said Ellison. He added that America is already seeing a drop in the deficit and this act will only help in lowering it. Overall, the mortgage tax deduction is on the table, but in what form it will survive — if it survives at all — is unknown. The MBA sees tampering with it a dangerous, and perhaps unnecessary, proposition. "Other people want to go after it for other reasons and that is fine, but when I look at it from a pure tax revenue standpoint, you don’t get a lot of lift out of the mortgage interest deduction," said Stevens. "If you go too deeply, you really start hitting middle class homeowners and could ultimately strike the core of the housing recovery."
URL to original article: http://www.housingwire.com/news/2013/03/19/mortgage-interest-deduction-stays-afloat-uncertain-future
For further information on Fresno Real Estate check: http://www.londonproperties.com
Spotlight on building permits as units rise
Source: Housingwire
By Megan Hopkins
New home starts on private residences inched up slightly to 917,000 units in February, up 0.8% from January, according to data from the U.S. Census Bureau and the Department of Housing and Urban Development. From last year, new home starts increased 27.7%, compared to 718,000 units in February 2012. "Housing starts made a partial comeback in February, but more importantly, housing permits made a sizeable gain," said analysts at Econoday. Building permits in February reached 946,000 units, 4.6% above the January recording of 904,000 units. According to Econoday, this exceeded market expectations of 925,000 units for February. February’s permit data also was up 33.8% from February 2012 when 707,000 permits were recorded. Single-family authorizations in February totaled 600,000, up 2.7% from January’s 584,000. Authorizations of units in buildings with five units or more were at a rate of 316,000 units in February. Privately-owned housing completions in February reached 711,000, 0.6% below the revised January estimate of 715,000, but still 24.3% above the 572,000 completions recorded in February 2012. February single-family housing completions rose 3.6% from January to 574,000 units, compared to January’s 554,000 units. Additionally, the February rate for units in buildings with five units or more totaled 130,000. Analysts at Econoday noted that housing starts are volatile during winter months due to weather and other large seasonal factors. "Nonetheless, starts are on a modest uptrend, fueled in part by shortage in supply and also slowly rising demand boosted by low mortgage rates. Permits, less affected by weather, are heading up and this is a positive for the economy. The housing numbers should not only nudge up construction employment but also consumer confidence," Econoday said.
URL to original article: http://www.housingwire.com/news/2013/03/19/spotlight-building-permits-units-rise
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Megan Hopkins
New home starts on private residences inched up slightly to 917,000 units in February, up 0.8% from January, according to data from the U.S. Census Bureau and the Department of Housing and Urban Development. From last year, new home starts increased 27.7%, compared to 718,000 units in February 2012. "Housing starts made a partial comeback in February, but more importantly, housing permits made a sizeable gain," said analysts at Econoday. Building permits in February reached 946,000 units, 4.6% above the January recording of 904,000 units. According to Econoday, this exceeded market expectations of 925,000 units for February. February’s permit data also was up 33.8% from February 2012 when 707,000 permits were recorded. Single-family authorizations in February totaled 600,000, up 2.7% from January’s 584,000. Authorizations of units in buildings with five units or more were at a rate of 316,000 units in February. Privately-owned housing completions in February reached 711,000, 0.6% below the revised January estimate of 715,000, but still 24.3% above the 572,000 completions recorded in February 2012. February single-family housing completions rose 3.6% from January to 574,000 units, compared to January’s 554,000 units. Additionally, the February rate for units in buildings with five units or more totaled 130,000. Analysts at Econoday noted that housing starts are volatile during winter months due to weather and other large seasonal factors. "Nonetheless, starts are on a modest uptrend, fueled in part by shortage in supply and also slowly rising demand boosted by low mortgage rates. Permits, less affected by weather, are heading up and this is a positive for the economy. The housing numbers should not only nudge up construction employment but also consumer confidence," Econoday said.
URL to original article: http://www.housingwire.com/news/2013/03/19/spotlight-building-permits-units-rise
For further information on Fresno Real Estate check: http://www.londonproperties.com
Monday, March 18, 2013
Firms replacing flippers to make homes move-in ready
Source: The Business Journal
Written by Chuck Harvey
From holes in walls to missing stoves and soiled carpets, many of the new homes that come on the market are far from move-in ready. Former homeowners have been especially rough on foreclosed homes, often leaving the homes in serious need of repair. Ads for such homes often characterize the dwellings as needing TLC (tender loving care) and some elbow grease. However, not every new buyer is gifted in the art of home repair. That’s where a new breed of home flipper comes in. They must know home repair or have a partner from the construction industry. The high numbers of foreclosed and damaged homes put on the market in recent years has given rise to flippers specializing in bringing homes up to move-in condition. The number of such flippers grew steadily from 2008-2009, but has now declined some because of fewer foreclosures on the market and higher price tags on homes for sale. Still, it is a lucrative and highly competitive business. The National Association of Realtors reports that more than 50 percent of today’s homebuyers are first-time buyers. And a Coldwell Banker survey found that most first time buyers are no longer interested in fixer-upper homes requiring TLC. Rather, 87 percent of the first-timers want move-in ready homes. And they want the job done right. So many of the individual flippers buying fixer-uppers have been replaced by larger home repair and resale companies that have the crews to do multiple home projects simultaneously. They tackle projects like replacing bathtubs, putting in new light fixtures, laying tile floors, replacing missing chandeliers and installing granite countertops. The most basic jobs are replacing carpet and painting the walls. But many of the homes will need more work including fixing air conditioners, roof repairs and replacing damaged concrete. The repairs can boost the initial sales price of the home by $50,000, depending on the neighborhood. But the main thing for the repair flipper is to pay for the work and materials and turn a profit. That often starts with a bargain auction purchase on the steps of the city courthouse. “They bid and they flip,” said Dan Hawkins, a broker-agent for Realty Concepts in Fresno. “It’s been very common the last two or three years.” Many of the homes are purchased with cash, Hawkins added. And most of the money for the purchases comes from investors, he said. Some of the investors have run into problems with homes not appraising for the price that is necessitated by the repairs and replacements. That’s where repair flippers must do their homework. The successful ones buy homes in sought-after areas. They also figure out approximately what the assessed value will be by comparing prices of other homes up for sale in the same area. That is the strategy of Anthony Hageman, partner with Gold Leaf Capital, which supported by investors, buys, repairs and improves homes before they are put back on the market. Hageman was formerly in the mortgage business. Now he works with a construction partner to fix multiple homes for buyers who want move-in ready homes. Gold Leaf Properties sells the homes. Hageman currently is in the process of repairing 33 homes. “I’ve been doing this for a year and a half,” Hageman said. “We are one of the top companies volume-wise now.” Hageman said that back in 2008, only two flippers did home repairs in Fresno. “From 2010 to 2011 there was real competition,” Hageman said. Initially amateurs came in and did shoddy work in order to make a fast buck, he said. “They messed it up for the professionals,” Hageman said. “Those guys are going away.” They’ve been replaced by large firms like Gold Leaf and Michael Osborne’s MRO Investments, which is reportedly the largest direct seller of renovated and remodeled real estate in the San Joaquin Valley. Both companies repaired hundreds of homes in 2012. Hageman said work to bring a home up to move-in ready condition takes about 10 days. That includes painting walls, replacing carpet, laying hardwood floors, replacing sinks, putting in new windows, rewiring and replacing missing appliances. Gold Leaf Capital operates in a competitive market from Chowchilla south to Visalia. Ken Neufeld, agent with London Properties in Fresno, agreed that competition has become more intense among flippers. “But if they buy right, they can come out right in the end,” Neufeld said. Once they fix a home and put it on the market, they usually receive multiple offers, he said. If the flipper turns fixes the home and sells it within 90 days, then the bank needs two appraisals on the home. The flipper pays for one appraisal and the buyer pays for the other, Neufeld said. In addition, a bank loan underwriter asks the flipper what kind of work was done on the home. That helps establish what the improvements were, but it is important for the buyer to get a general inspection on the home to ensure it really is in move-in condition, Neufeld said. Don Scordino, agent with Realty Concepts in Fresno and regional chair for the California Association of Realtors, warned that as with any contractor, buyers must be careful when purchasing a repaired, “move-in ready” home. “Some do an outstanding job and some try to put lipstick on a pig and expect to make a high profit,” Scordino said.
URL to original article: http://c8.79.354a.static.theplanet.com/news/real-estate/5270-firms-replacing-flippers-to-make-homes-move-in-ready
For further information on Fresno Real Estate check: http://www.londonproperties.com
Written by Chuck Harvey
From holes in walls to missing stoves and soiled carpets, many of the new homes that come on the market are far from move-in ready. Former homeowners have been especially rough on foreclosed homes, often leaving the homes in serious need of repair. Ads for such homes often characterize the dwellings as needing TLC (tender loving care) and some elbow grease. However, not every new buyer is gifted in the art of home repair. That’s where a new breed of home flipper comes in. They must know home repair or have a partner from the construction industry. The high numbers of foreclosed and damaged homes put on the market in recent years has given rise to flippers specializing in bringing homes up to move-in condition. The number of such flippers grew steadily from 2008-2009, but has now declined some because of fewer foreclosures on the market and higher price tags on homes for sale. Still, it is a lucrative and highly competitive business. The National Association of Realtors reports that more than 50 percent of today’s homebuyers are first-time buyers. And a Coldwell Banker survey found that most first time buyers are no longer interested in fixer-upper homes requiring TLC. Rather, 87 percent of the first-timers want move-in ready homes. And they want the job done right. So many of the individual flippers buying fixer-uppers have been replaced by larger home repair and resale companies that have the crews to do multiple home projects simultaneously. They tackle projects like replacing bathtubs, putting in new light fixtures, laying tile floors, replacing missing chandeliers and installing granite countertops. The most basic jobs are replacing carpet and painting the walls. But many of the homes will need more work including fixing air conditioners, roof repairs and replacing damaged concrete. The repairs can boost the initial sales price of the home by $50,000, depending on the neighborhood. But the main thing for the repair flipper is to pay for the work and materials and turn a profit. That often starts with a bargain auction purchase on the steps of the city courthouse. “They bid and they flip,” said Dan Hawkins, a broker-agent for Realty Concepts in Fresno. “It’s been very common the last two or three years.” Many of the homes are purchased with cash, Hawkins added. And most of the money for the purchases comes from investors, he said. Some of the investors have run into problems with homes not appraising for the price that is necessitated by the repairs and replacements. That’s where repair flippers must do their homework. The successful ones buy homes in sought-after areas. They also figure out approximately what the assessed value will be by comparing prices of other homes up for sale in the same area. That is the strategy of Anthony Hageman, partner with Gold Leaf Capital, which supported by investors, buys, repairs and improves homes before they are put back on the market. Hageman was formerly in the mortgage business. Now he works with a construction partner to fix multiple homes for buyers who want move-in ready homes. Gold Leaf Properties sells the homes. Hageman currently is in the process of repairing 33 homes. “I’ve been doing this for a year and a half,” Hageman said. “We are one of the top companies volume-wise now.” Hageman said that back in 2008, only two flippers did home repairs in Fresno. “From 2010 to 2011 there was real competition,” Hageman said. Initially amateurs came in and did shoddy work in order to make a fast buck, he said. “They messed it up for the professionals,” Hageman said. “Those guys are going away.” They’ve been replaced by large firms like Gold Leaf and Michael Osborne’s MRO Investments, which is reportedly the largest direct seller of renovated and remodeled real estate in the San Joaquin Valley. Both companies repaired hundreds of homes in 2012. Hageman said work to bring a home up to move-in ready condition takes about 10 days. That includes painting walls, replacing carpet, laying hardwood floors, replacing sinks, putting in new windows, rewiring and replacing missing appliances. Gold Leaf Capital operates in a competitive market from Chowchilla south to Visalia. Ken Neufeld, agent with London Properties in Fresno, agreed that competition has become more intense among flippers. “But if they buy right, they can come out right in the end,” Neufeld said. Once they fix a home and put it on the market, they usually receive multiple offers, he said. If the flipper turns fixes the home and sells it within 90 days, then the bank needs two appraisals on the home. The flipper pays for one appraisal and the buyer pays for the other, Neufeld said. In addition, a bank loan underwriter asks the flipper what kind of work was done on the home. That helps establish what the improvements were, but it is important for the buyer to get a general inspection on the home to ensure it really is in move-in condition, Neufeld said. Don Scordino, agent with Realty Concepts in Fresno and regional chair for the California Association of Realtors, warned that as with any contractor, buyers must be careful when purchasing a repaired, “move-in ready” home. “Some do an outstanding job and some try to put lipstick on a pig and expect to make a high profit,” Scordino said.
URL to original article: http://c8.79.354a.static.theplanet.com/news/real-estate/5270-firms-replacing-flippers-to-make-homes-move-in-ready
For further information on Fresno Real Estate check: http://www.londonproperties.com
Fresno State farm market opens to customers
Source: The Business Journal
After nearly a year in the works, Fresno State celebrated the grand opening of the new Rue and Gwen Gibson Farm Market to sell the university's produce. The Jordan College of Agricultural Sciences and Technology broke ground on the market last April thanks to a $1.5-million bequest from the estate of late teacher Joyce Mae Gibson, who named the former market in 2008 in honor of her parents Rue and Gwen Gibson. Located just south of the older farm market on the southeast corner of Chestnut and Barstow avenues, the new shop is nearly double the size of its predecessor at 2,350 square feet of floor space and 4,800 square feet overall. Features of the new store include a hand-dipped ice cream counter, flower shop and wine tasting room, while customers are also able to purchase food in the market or in an outdoor dining area. The new Gibson Farm Market officially opened this morning with a ribbon cutting ceremony as Fresno State President John Welty took the time to congratulate all those involved. Welty was joined in the dedication by Jordan College Dean Charles Boyer, Ag Foundation Chair Pat Ricchiuti, Joyce Gibson's sister Beverly Knobloch and students of the Jordan College. The market, first established in 1984 to sell sweet corn and fresh fruit grown by Fresno State students, had sold up to $1 million in farm products each year, from wine, cheese and olive oil to fruits, vegetables, meats and ice cream.
URL to original article: http://www.thebusinessjournal.com/news/retail/5347-fresno-state-farm-market-opens-to-customers
For further information on Fresno Real Estate check: http://www.londonproperties.com
After nearly a year in the works, Fresno State celebrated the grand opening of the new Rue and Gwen Gibson Farm Market to sell the university's produce. The Jordan College of Agricultural Sciences and Technology broke ground on the market last April thanks to a $1.5-million bequest from the estate of late teacher Joyce Mae Gibson, who named the former market in 2008 in honor of her parents Rue and Gwen Gibson. Located just south of the older farm market on the southeast corner of Chestnut and Barstow avenues, the new shop is nearly double the size of its predecessor at 2,350 square feet of floor space and 4,800 square feet overall. Features of the new store include a hand-dipped ice cream counter, flower shop and wine tasting room, while customers are also able to purchase food in the market or in an outdoor dining area. The new Gibson Farm Market officially opened this morning with a ribbon cutting ceremony as Fresno State President John Welty took the time to congratulate all those involved. Welty was joined in the dedication by Jordan College Dean Charles Boyer, Ag Foundation Chair Pat Ricchiuti, Joyce Gibson's sister Beverly Knobloch and students of the Jordan College. The market, first established in 1984 to sell sweet corn and fresh fruit grown by Fresno State students, had sold up to $1 million in farm products each year, from wine, cheese and olive oil to fruits, vegetables, meats and ice cream.
URL to original article: http://www.thebusinessjournal.com/news/retail/5347-fresno-state-farm-market-opens-to-customers
For further information on Fresno Real Estate check: http://www.londonproperties.com
Thursday, March 7, 2013
Secured property tax due April 10
Source: The Business Journal
The second installment of the 2012-13 secured property taxes is due April 10 by 5 p.m., the Fresno County Auditor-Controller/Treasurer-Tax Collector’s office said in a release. Anyone who has recently acquired property in Fresno County is urged to verify that the taxes have been paid. Those who have not received a tax bill are still responsible for making timely payments, and a 10 percent penalty along with a $10 cost will be added to all payments received after 5 p.m. or postmarked by the Postal Service after April 10. Property owners are encouraged to pay by mail or use the county’s automated system, which allows payments via the Internet as well as by automated phone system and relieves the taxpayer of parking problems and waiting in line to pay. Payments made by check can be put in the drop box in the lobby of Room 105 at the Hall of Records or at the drive-through drop off service located in front of the building. The Hall of Records is located at 2281 Tulare Street in Fresno. The automated phone system number is (559) 600-3482.
URL to original article: http://www.thebusinessjournal.com/news/government-and-politics/5238-secured-property-tax-due-april-10
For further information on Fresno Real Estate check: http://www.londonproperties.com
The second installment of the 2012-13 secured property taxes is due April 10 by 5 p.m., the Fresno County Auditor-Controller/Treasurer-Tax Collector’s office said in a release. Anyone who has recently acquired property in Fresno County is urged to verify that the taxes have been paid. Those who have not received a tax bill are still responsible for making timely payments, and a 10 percent penalty along with a $10 cost will be added to all payments received after 5 p.m. or postmarked by the Postal Service after April 10. Property owners are encouraged to pay by mail or use the county’s automated system, which allows payments via the Internet as well as by automated phone system and relieves the taxpayer of parking problems and waiting in line to pay. Payments made by check can be put in the drop box in the lobby of Room 105 at the Hall of Records or at the drive-through drop off service located in front of the building. The Hall of Records is located at 2281 Tulare Street in Fresno. The automated phone system number is (559) 600-3482.
URL to original article: http://www.thebusinessjournal.com/news/government-and-politics/5238-secured-property-tax-due-april-10
For further information on Fresno Real Estate check: http://www.londonproperties.com
Dealers give new BMW owner warm Fresno welcome
Source: The Business Journal
Written by Clay Moffitt
As soon as the ink dried on a deal to purchase Weber BMW in Fresno, new owner Al Monjazeb boarded a plane to attend to business at his home base in Seattle. However the general manager for his recently acquired dealership, Sudhir Sood, wasted no time presenting himself to his new peers. Sood has been the general manager for the dealership, now known as BMW Fresno, for a couple weeks now, and he has already made a strong impression on local dealers with his attendance at a recent Fresno Clovis New Car Dealers Association meeting. Association president Manuel Prieto found him very engaging and believes he will make a significant impact in the local luxury car market. “The luxury market requires a lot of attention because when you spend that type of money for a vehicle, you want to be assured your needs will be met,” Prieto said. Sood moved to Fresno from Valencia, where he was also a general manager for a BMW location, and shared his excitement to get to work in the Central Valley. “It’s great dealership in a great city, and I think it is a really good opportunity,” Sood said. Sood and Monjazeb have been friends for a number of years, dating back to Monjazeb’s early days in the industry in Southern California. They’re ready to establish their presence in a new area. “My general manager is from Southern California and we believe the Fresno market has great potential,” Monjazeb said. Caren Myers, the general manager for Fresno Lexus, referred to Sood as a “great automotive man” and expressed her excitement to have him in the Valley. Myers went through a similar process as the new dealer in town eight years ago, and while she was settling into her new surroundings, her phone rang. Much to Myers’ surprise, on the other end was TheeAnna Stevens, the dealer principal for Fresno Acura, welcoming her to the area and wishing her good luck. Myers recalled how much that meant to her, and she extended the same courtesy to Sood on his first day in Fresno as general manager. “You’re a in a strange town and you’re coming here to do a great job, build the business and it really helps to know it’s a friendly environment,” Myers said. The new ownership group plans to keep nearly the entire staff of 80 employees at the dealership. “If anything we plan on adding some jobs,” Sood said, noting the dealership is looking for additional salespeople and technicians. Previous owner of the dealership Yrma Rico confirmed the employee retention was one of the selling points in accepting Monjazeb’s offer. “It’s good for the community, good for Fresno and it was great for the employees,” Rico said. “All and all, it was a good deal.” Monjazeb first started selling cars in 1980 in Southern California and moved to Seattle in 1995, where he began building his luxury import empire. He currently owns dealerships in the Seattle area featuring the Jaguar, Land Rover, Lamborghini, Bentley, Rolls Royce, BMW and Mercedes brands. He has been involved with the BMW brand since 1990. Monjazeb boldly envisions a bright future on the horizon, with a primary object to become the flagship BMW dealership for service in the state of California. “When your selling the best brand in the world, you have to provide the best customer services in the world,” Monjazeb said. Despite being headquartered in the Seattle area, Monjazeb indicated he has no intentions of being a silent partner and will frequently visit the Fresno location. Although the local luxury dealers may pride themselves on their cordial hospitality, they’re quick to point out it’s still a very competitive field. “Absolutely,” Myers confirmed. “We don’t intend to give up market share.”
URL to original article: http://www.thebusinessjournal.com/news/retail/5228-dealers-give-new-bmw-owner-warm-fresno-welcome
For further information on Fresno Real Estate check: http://www.londonproperties.com
Written by Clay Moffitt
As soon as the ink dried on a deal to purchase Weber BMW in Fresno, new owner Al Monjazeb boarded a plane to attend to business at his home base in Seattle. However the general manager for his recently acquired dealership, Sudhir Sood, wasted no time presenting himself to his new peers. Sood has been the general manager for the dealership, now known as BMW Fresno, for a couple weeks now, and he has already made a strong impression on local dealers with his attendance at a recent Fresno Clovis New Car Dealers Association meeting. Association president Manuel Prieto found him very engaging and believes he will make a significant impact in the local luxury car market. “The luxury market requires a lot of attention because when you spend that type of money for a vehicle, you want to be assured your needs will be met,” Prieto said. Sood moved to Fresno from Valencia, where he was also a general manager for a BMW location, and shared his excitement to get to work in the Central Valley. “It’s great dealership in a great city, and I think it is a really good opportunity,” Sood said. Sood and Monjazeb have been friends for a number of years, dating back to Monjazeb’s early days in the industry in Southern California. They’re ready to establish their presence in a new area. “My general manager is from Southern California and we believe the Fresno market has great potential,” Monjazeb said. Caren Myers, the general manager for Fresno Lexus, referred to Sood as a “great automotive man” and expressed her excitement to have him in the Valley. Myers went through a similar process as the new dealer in town eight years ago, and while she was settling into her new surroundings, her phone rang. Much to Myers’ surprise, on the other end was TheeAnna Stevens, the dealer principal for Fresno Acura, welcoming her to the area and wishing her good luck. Myers recalled how much that meant to her, and she extended the same courtesy to Sood on his first day in Fresno as general manager. “You’re a in a strange town and you’re coming here to do a great job, build the business and it really helps to know it’s a friendly environment,” Myers said. The new ownership group plans to keep nearly the entire staff of 80 employees at the dealership. “If anything we plan on adding some jobs,” Sood said, noting the dealership is looking for additional salespeople and technicians. Previous owner of the dealership Yrma Rico confirmed the employee retention was one of the selling points in accepting Monjazeb’s offer. “It’s good for the community, good for Fresno and it was great for the employees,” Rico said. “All and all, it was a good deal.” Monjazeb first started selling cars in 1980 in Southern California and moved to Seattle in 1995, where he began building his luxury import empire. He currently owns dealerships in the Seattle area featuring the Jaguar, Land Rover, Lamborghini, Bentley, Rolls Royce, BMW and Mercedes brands. He has been involved with the BMW brand since 1990. Monjazeb boldly envisions a bright future on the horizon, with a primary object to become the flagship BMW dealership for service in the state of California. “When your selling the best brand in the world, you have to provide the best customer services in the world,” Monjazeb said. Despite being headquartered in the Seattle area, Monjazeb indicated he has no intentions of being a silent partner and will frequently visit the Fresno location. Although the local luxury dealers may pride themselves on their cordial hospitality, they’re quick to point out it’s still a very competitive field. “Absolutely,” Myers confirmed. “We don’t intend to give up market share.”
URL to original article: http://www.thebusinessjournal.com/news/retail/5228-dealers-give-new-bmw-owner-warm-fresno-welcome
For further information on Fresno Real Estate check: http://www.londonproperties.com
Falling foreclosures keep national housing supply tight
Source: Housingwire
By Megan Hopkins
National housing inventory remains at a traditional low, leading to healthy demand and pushing prices higher. And there is good reason for it: fewer foreclosures on the market prevent a bottoming out. The number of homes listed as for sale on Zillow dropped 16.6% year-over-year in February, according to the real estate marketplace website. It's a trend noticed by foreclosure data company RealtyTrac which notes big drops in available inventory based on plummeting foreclosure numbers in markets like California, Las Vegas and Phoenix. With inventories already lower than normal for this time of year, this drop in available listings only adds to the inventory crunch as markets head into the busy spring selling season. “The supply of for-sale listings continues to dry up, driven in part by potential sellers trapped in negative equity and homeowners that won’t sell out of fear they won’t be able to find a suitable home to buy later,” said Zillow ($49.64 -0.497%) Chief Economist Stan Humphries. Zillow broke down the year-over-year change for metros and revealed that almost two-thirds of the areas surveyed reported a smaller year-over-year decline in for-sale homes in February than in January. Drilling even deeper into the breakdown, California seemed to dominate the list with the biggest change in homes for sale on Zillow. In fact, four of the top five metros in the inventory contraction are located in California. Sacramento saw a 48% drop, Los Angeles reported a 45.7% decline, San Francisco inventory dropped 40.9% and San Diego fell 39.4%. According to Daren Blomquist, vice president of RealtyTrac, one of the major reasons for the big drops in available inventory is the plummeting foreclosure numbers in markets like California, Las Vegas and Phoenix. Data from RealtyTrac reveals that from January 2012 to January 2013, foreclosure inventory dropped 56% in Los Angeles, 50% in San Francisco, 55% in Riverside-San Bernardino and 73% in San Diego. “Given that foreclosures accounted for 30% to 50% of sales in those markets, the drop in foreclosures for sale is having a significant impact on overall inventory,” noted Blomquist. But Blomquist points out that many markets are beginning to see a change in unlisted foreclosures, indicating there will likely be a rebound in available inventory in the coming months as those foreclosure properties are listed as short sales or bank-owned homes for sale. Humphries also seems upbeat that inventory will continue to grow in the next few months. “As home values rise, some homeowners will be freed from negative equity and able to list their homes, which will contribute to an easing of the inventory crunch. While this inventory is coming, it may still be a frustrating spring for buyers vying for what inventory is available. It’s important to be patient and not commit to paying beyond one’s comfort level in the heat of negotiations,” said Humphries.
URL to original article: http://www.housingwire.com/news/2013/03/07/falling-foreclosures-keep-national-housing-supply-tight
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Megan Hopkins
National housing inventory remains at a traditional low, leading to healthy demand and pushing prices higher. And there is good reason for it: fewer foreclosures on the market prevent a bottoming out. The number of homes listed as for sale on Zillow dropped 16.6% year-over-year in February, according to the real estate marketplace website. It's a trend noticed by foreclosure data company RealtyTrac which notes big drops in available inventory based on plummeting foreclosure numbers in markets like California, Las Vegas and Phoenix. With inventories already lower than normal for this time of year, this drop in available listings only adds to the inventory crunch as markets head into the busy spring selling season. “The supply of for-sale listings continues to dry up, driven in part by potential sellers trapped in negative equity and homeowners that won’t sell out of fear they won’t be able to find a suitable home to buy later,” said Zillow ($49.64 -0.497%) Chief Economist Stan Humphries. Zillow broke down the year-over-year change for metros and revealed that almost two-thirds of the areas surveyed reported a smaller year-over-year decline in for-sale homes in February than in January. Drilling even deeper into the breakdown, California seemed to dominate the list with the biggest change in homes for sale on Zillow. In fact, four of the top five metros in the inventory contraction are located in California. Sacramento saw a 48% drop, Los Angeles reported a 45.7% decline, San Francisco inventory dropped 40.9% and San Diego fell 39.4%. According to Daren Blomquist, vice president of RealtyTrac, one of the major reasons for the big drops in available inventory is the plummeting foreclosure numbers in markets like California, Las Vegas and Phoenix. Data from RealtyTrac reveals that from January 2012 to January 2013, foreclosure inventory dropped 56% in Los Angeles, 50% in San Francisco, 55% in Riverside-San Bernardino and 73% in San Diego. “Given that foreclosures accounted for 30% to 50% of sales in those markets, the drop in foreclosures for sale is having a significant impact on overall inventory,” noted Blomquist. But Blomquist points out that many markets are beginning to see a change in unlisted foreclosures, indicating there will likely be a rebound in available inventory in the coming months as those foreclosure properties are listed as short sales or bank-owned homes for sale. Humphries also seems upbeat that inventory will continue to grow in the next few months. “As home values rise, some homeowners will be freed from negative equity and able to list their homes, which will contribute to an easing of the inventory crunch. While this inventory is coming, it may still be a frustrating spring for buyers vying for what inventory is available. It’s important to be patient and not commit to paying beyond one’s comfort level in the heat of negotiations,” said Humphries.
URL to original article: http://www.housingwire.com/news/2013/03/07/falling-foreclosures-keep-national-housing-supply-tight
For further information on Fresno Real Estate check: http://www.londonproperties.com
Wednesday, March 6, 2013
Fed survey: US economy growing throughout country
Source: The Business Journal
Written by MARTIN CRUTSINGER, AP Economics Writer
(AP) — Strong auto sales, hiring gains and a continued housing recovery helped the U.S. economy grow throughout the country in January and February, according to a survey released Wednesday by the Federal Reserve. The Fed says 10 of its 12 banking districts reported moderate or modest growth, while Boston and Chicago districts reported slow growth. Consumer spending increased in most regions, although growth slowed in many districts and much of the increases were driven by auto sales. Many districts said that consumers pulled back slightly on spending outside of autos after seeing taxes rise and gas prices increase. Some also expressed concerns about federal spending cuts that started on March 1. Housing markets showed more strength in nearly all parts of the country, while manufacturing showed modest improvements in most regions. And most districts reported some improvement in individual jobs markets. The report, called the Beige Book, provides anecdotal information on economic conditions through February 22. The information will be used as the basis for the Fed's policy discussion at the March 19-20 meeting. Many economists believe Fed officials will take no new steps when they meet. In January, the Fed stood behind aggressive steps it launched in December to try to reduce unemployment. It repeated that it would keep its key short-term interest rate at a record low at least until unemployment falls below 6.5 percent. And the Fed said it would keep buying Treasurys and mortgage bonds to help lower borrowing costs and encourage spending. The unemployment rate was 7.9 percent in January when the Fed last met. The economy has shown improvement since then, even as Americans paid higher taxes and automatic government spending cuts loomed. On Jan. 1, nearly all Americans who draw a paycheck began paying higher Social Security taxes and income taxes rose for the highest earning workers. The tax increases and broader budget debate in Washington haven't slowed financial markets. The Dow Jones industrial average closed Tuesday at a record high and kept rising Wednesday. The index of 30 big corporations has more than doubled since hitting a low during the financial crisis in March 2009. Consumer confidence rose in February from January, according to surveys by both the Conference Board and the University of Michigan. Factories and service companies both grew at the fastest pace in at least a year, according to surveys issued Friday and Tuesday by the Institute for Supply Management. And payroll processor ADP said Wednesday that U.S. businesses added 198,000 jobs in February. The private survey also revised January's hiring figures to show companies added 215,000 jobs that month, 23,000 more than what had initially been reported. The figure suggests that the government's February jobs report, to be issued Friday, may come in above economists' forecasts. Analysts expect it will show the economy added 152,000 jobs and the unemployment rate dipped to 7.8 percent from 7.9 percent in January.
URL to original article: http://www.thebusinessjournal.com/news/national/5209-fed-survey-us-economy-growing-throughout-country
For further information on Fresno Real Estate check: http://www.londonproperties.com
Written by MARTIN CRUTSINGER, AP Economics Writer
(AP) — Strong auto sales, hiring gains and a continued housing recovery helped the U.S. economy grow throughout the country in January and February, according to a survey released Wednesday by the Federal Reserve. The Fed says 10 of its 12 banking districts reported moderate or modest growth, while Boston and Chicago districts reported slow growth. Consumer spending increased in most regions, although growth slowed in many districts and much of the increases were driven by auto sales. Many districts said that consumers pulled back slightly on spending outside of autos after seeing taxes rise and gas prices increase. Some also expressed concerns about federal spending cuts that started on March 1. Housing markets showed more strength in nearly all parts of the country, while manufacturing showed modest improvements in most regions. And most districts reported some improvement in individual jobs markets. The report, called the Beige Book, provides anecdotal information on economic conditions through February 22. The information will be used as the basis for the Fed's policy discussion at the March 19-20 meeting. Many economists believe Fed officials will take no new steps when they meet. In January, the Fed stood behind aggressive steps it launched in December to try to reduce unemployment. It repeated that it would keep its key short-term interest rate at a record low at least until unemployment falls below 6.5 percent. And the Fed said it would keep buying Treasurys and mortgage bonds to help lower borrowing costs and encourage spending. The unemployment rate was 7.9 percent in January when the Fed last met. The economy has shown improvement since then, even as Americans paid higher taxes and automatic government spending cuts loomed. On Jan. 1, nearly all Americans who draw a paycheck began paying higher Social Security taxes and income taxes rose for the highest earning workers. The tax increases and broader budget debate in Washington haven't slowed financial markets. The Dow Jones industrial average closed Tuesday at a record high and kept rising Wednesday. The index of 30 big corporations has more than doubled since hitting a low during the financial crisis in March 2009. Consumer confidence rose in February from January, according to surveys by both the Conference Board and the University of Michigan. Factories and service companies both grew at the fastest pace in at least a year, according to surveys issued Friday and Tuesday by the Institute for Supply Management. And payroll processor ADP said Wednesday that U.S. businesses added 198,000 jobs in February. The private survey also revised January's hiring figures to show companies added 215,000 jobs that month, 23,000 more than what had initially been reported. The figure suggests that the government's February jobs report, to be issued Friday, may come in above economists' forecasts. Analysts expect it will show the economy added 152,000 jobs and the unemployment rate dipped to 7.8 percent from 7.9 percent in January.
URL to original article: http://www.thebusinessjournal.com/news/national/5209-fed-survey-us-economy-growing-throughout-country
For further information on Fresno Real Estate check: http://www.londonproperties.com
Friday, March 1, 2013
Low inventory pushes multiple offers on real estate
Source: Housingwire
Home Buyers Are Back, but Where Are the Houses?
By: Diana Olick CNBC Real Estate Reporter
The first official day of Spring may still be 20 days away, but the Spring housing market is already underway. Buyer traffic is rising along with home prices, but one traditional Spring phenomenon is sorely absent: rising supply. The raw number of homes for sale is now at its lowest level in over 13 years, according to the National Association of Realtors, and the numbers continue to fall."Some listings are vanishing from a strategic decision of waiting for an even a higher price later. Some are due to few newly built homes available to trade-up to, hence some current existing home owners are unwilling to list. Some could be related to fear of being unable to buy after selling," says Lawrence Yun, chief economist for the National Association of Realtors. Supplies are down across the nation, not just in the former crash markets, like Phoenix and Las Vegas, where investors decimated inventories of distressed homes in bulk purchases. Listings are down 31 percent in Seattle from a year ago, down 32 percent in Denver, down 20 percent in Houston, down 37 percent in Boston, according to local Realtor associations. "At the moment it's a seller's market again," said David Fogg, a real estate agent in Burbank, CA. "Very low inventory, very low interest rates, almost no bank inventory of homes, it's crazy out there. Every good property I've listed this year has brought 10-50 offers and sales prices 10-20 percent over comps. Cash is King." Nearly one third of all existing home sales in January were paid for in cash, and not just by investors, who are making up a shrinking share of the market. Fierce competition is forcing buyers to use every advantage, given that so many are going after so little. In California's San Fernando Valley there are usually over 9,000 homes for sale this time of year, according to real estate agent Billy Wynn. Today there are just over 1,400. "Realtors are getting so many offers they are taking the homes off the market and not accepting additional offers before any offer is even accepted," said Wynn. "This is real estate bubble 2.0 on steroids." It is a puzzling situation, given all the warnings of a tsunami of so-called "shadow inventory" that was supposed to be flooding the market right now. As it stands, fewer distressed properties are coming to the market. "The ticking time bomb of shadow supply has been diffused by a combination of foreclosure processing delays in judicial states, legislation slowing down the foreclosure process in non-judicial states, foreclosure prevention programs and initiatives encouraging short sales," said Daren Blomquist of RealtyTrac. "Notably, in 2012, was the National Mortgage Settlement, which both encouraged foreclosure prevention and short sales as an alternative to foreclosure, and the loosening of short sale guidelines by Fannie Mae and Freddie Mac in November." As a result, short sales, where the home is sold for less than the value of the mortgage, are rising as a share of total distressed sales, while bank-owned home sales are falling. Investors are now competing for such little supply that they are ironically pricing themselves out of the market. "We are hearing also, that new home buyers are not really looking at the foreclosure market—the houses are either not in good neighborhoods or the house is in bad condition and needs a lot of updates," noted Paul Miller, an analyst at FBR. "So home buyers are either going to new-builds or being very picky with the type and shape of the house. We are hearing from plenty of mortgage brokers that they are working with many couples, and they just can't find the perfect house." It is the same story in Houston, Texas, where there were 25,600 listings in January of last year and just 19,000 today. Real estate agents there doubt they will see a surge in inventory this Spring, as Houston is experiencing an employment boom. The Texas Workforce Commission reported more than 85,000 new jobs were created there in 2012. Housing starts are expected to rise by about 17 percent, but that only translates to about 28,000 new homes, according to the Houston Association of Realtors, and current homeowners are just not stepping up. "Many of my clients are unsure about the economy and the future costs they may face that are associated with The Affordable Care Act. Many say they are nervous about the future and are just sitting back waiting for economic conditions to level out," explained Danny Frank, Chairman of the Houston Association of Realtors. "Some sellers may be reluctant to put their homes on the market because it typically requires them, in turn, to purchase a home. They may not be financially prepared to make that commitment at this time. Another factor is that there simply isn't a vast number of homes currently on the market in Houston because of the buying surge we experienced throughout 2012 and now into the new year." It may also be a case of, 'Be careful what you wish for.' Homeowners were crushed by falling home prices, losing trillions of dollars collectively in home equity. Now that prices are rising, and rising faster than most expected, sellers likely see no reason to rush. "We are not seeing a flood of new listings, as I would have predicted in a rising market," said Steve Storti of Philadelphia-based Prudential Fox & Roach. "Sellers are wary and perhaps a little shell-shocked by having listed previously and not being successful. They also may be waiting for prices to rise."
URL to original article: http://www.housingwire.com/fastnews/2013/03/01/low-inventory-pushes-multiple-offers-real-estate
For further information on Fresno Real Estate check: http://www.londonpropeties.com
Home Buyers Are Back, but Where Are the Houses?
By: Diana Olick CNBC Real Estate Reporter
The first official day of Spring may still be 20 days away, but the Spring housing market is already underway. Buyer traffic is rising along with home prices, but one traditional Spring phenomenon is sorely absent: rising supply. The raw number of homes for sale is now at its lowest level in over 13 years, according to the National Association of Realtors, and the numbers continue to fall."Some listings are vanishing from a strategic decision of waiting for an even a higher price later. Some are due to few newly built homes available to trade-up to, hence some current existing home owners are unwilling to list. Some could be related to fear of being unable to buy after selling," says Lawrence Yun, chief economist for the National Association of Realtors. Supplies are down across the nation, not just in the former crash markets, like Phoenix and Las Vegas, where investors decimated inventories of distressed homes in bulk purchases. Listings are down 31 percent in Seattle from a year ago, down 32 percent in Denver, down 20 percent in Houston, down 37 percent in Boston, according to local Realtor associations. "At the moment it's a seller's market again," said David Fogg, a real estate agent in Burbank, CA. "Very low inventory, very low interest rates, almost no bank inventory of homes, it's crazy out there. Every good property I've listed this year has brought 10-50 offers and sales prices 10-20 percent over comps. Cash is King." Nearly one third of all existing home sales in January were paid for in cash, and not just by investors, who are making up a shrinking share of the market. Fierce competition is forcing buyers to use every advantage, given that so many are going after so little. In California's San Fernando Valley there are usually over 9,000 homes for sale this time of year, according to real estate agent Billy Wynn. Today there are just over 1,400. "Realtors are getting so many offers they are taking the homes off the market and not accepting additional offers before any offer is even accepted," said Wynn. "This is real estate bubble 2.0 on steroids." It is a puzzling situation, given all the warnings of a tsunami of so-called "shadow inventory" that was supposed to be flooding the market right now. As it stands, fewer distressed properties are coming to the market. "The ticking time bomb of shadow supply has been diffused by a combination of foreclosure processing delays in judicial states, legislation slowing down the foreclosure process in non-judicial states, foreclosure prevention programs and initiatives encouraging short sales," said Daren Blomquist of RealtyTrac. "Notably, in 2012, was the National Mortgage Settlement, which both encouraged foreclosure prevention and short sales as an alternative to foreclosure, and the loosening of short sale guidelines by Fannie Mae and Freddie Mac in November." As a result, short sales, where the home is sold for less than the value of the mortgage, are rising as a share of total distressed sales, while bank-owned home sales are falling. Investors are now competing for such little supply that they are ironically pricing themselves out of the market. "We are hearing also, that new home buyers are not really looking at the foreclosure market—the houses are either not in good neighborhoods or the house is in bad condition and needs a lot of updates," noted Paul Miller, an analyst at FBR. "So home buyers are either going to new-builds or being very picky with the type and shape of the house. We are hearing from plenty of mortgage brokers that they are working with many couples, and they just can't find the perfect house." It is the same story in Houston, Texas, where there were 25,600 listings in January of last year and just 19,000 today. Real estate agents there doubt they will see a surge in inventory this Spring, as Houston is experiencing an employment boom. The Texas Workforce Commission reported more than 85,000 new jobs were created there in 2012. Housing starts are expected to rise by about 17 percent, but that only translates to about 28,000 new homes, according to the Houston Association of Realtors, and current homeowners are just not stepping up. "Many of my clients are unsure about the economy and the future costs they may face that are associated with The Affordable Care Act. Many say they are nervous about the future and are just sitting back waiting for economic conditions to level out," explained Danny Frank, Chairman of the Houston Association of Realtors. "Some sellers may be reluctant to put their homes on the market because it typically requires them, in turn, to purchase a home. They may not be financially prepared to make that commitment at this time. Another factor is that there simply isn't a vast number of homes currently on the market in Houston because of the buying surge we experienced throughout 2012 and now into the new year." It may also be a case of, 'Be careful what you wish for.' Homeowners were crushed by falling home prices, losing trillions of dollars collectively in home equity. Now that prices are rising, and rising faster than most expected, sellers likely see no reason to rush. "We are not seeing a flood of new listings, as I would have predicted in a rising market," said Steve Storti of Philadelphia-based Prudential Fox & Roach. "Sellers are wary and perhaps a little shell-shocked by having listed previously and not being successful. They also may be waiting for prices to rise."
URL to original article: http://www.housingwire.com/fastnews/2013/03/01/low-inventory-pushes-multiple-offers-real-estate
For further information on Fresno Real Estate check: http://www.londonpropeties.com
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