Source: Housingwire
By: Megan Hopkins
As higher mortgage interest rates continue to slow the market, pending home sales reflected such changes, dropping 1.3% to 109.5 in July from 110.9 in June. However, pending sales are 6.7% above July 2012, when the index was at 102.6.
July marks the 27th consecutive month of year-over-year gains for pending sales, according to the National Association of Realtors.
According to Lawrence Yun, chief economist at NAR, there is an uneven pattern throughout the country. “The modest decline in sales is not yet concerning, and contract activity remains elevated, with the South and Midwest showing no measurable slowdown. However, higher mortgage interest rates and rising home prices are impacting monthly contract activity in the high-cost regions of the Northeast and the West,” he said.
“More homes clearly need to built in the West to relieve price pressure, or the region could soon face pronounced affordability problems,” Yun added.
In the Northeast, the PHSI dropped 6.5% to 81.5 in July, although it remains 3.3% above year-ago levels. The Midwest slipped slightly, down 1.0% to 113.2 in July; it remains 14.5% above July 2012.
Pending sales in the South were up 2.6% to an index of 121.5 in July and up 7.7% from July 2012. The index dropped in the West, falling 4.9% in July to 108.6 and down 0.4% from July 2012.
NAR expects existing-home sales to be up 10% for the year, totaling an estimated 5.1 million. Existing-home sales are projected to reach approximately 5.2 million next year.
The national median existing-home price is expected to rise nearly 11% in 2012 alongside ongoing supply and demand imbalances. Looking ahead to 2014, as rising construction takes some of the pressure off of home prices, NAR predicts price gains will moderate to 5-6% in 2014.
“It takes up to two months for pending sales to close which means this report points to trouble for final sales in both August and in September,” said analysts at Econoday. “Note that a big 5.8% jump in pending home sales in May translated to a big 6.5% jump in final sales of existing homes in July. But that was pending home sales data for May. The data for the subsequent two months have shown declines.”
"We should see existing home sales decline in the next couple of months since pending sales are usually a good leading indicator of existing home sales one and two months later," said Trulia (TRLA) Chief Economimst Jed Kolko. "But today’s pending home sales decline was modest, suggesting that rising rates aren’t going to clobber existing-home sales. Loosening credit and expanding inventory should help sales, partially offsetting the effect of rising mortgage rates."
According to Sterne Agee Chief Economist Lindsey Piegza, this morning’s report was particularly important given the recent decline in new home sales, as this is the first indication of demand for previously owned homes in the second half of the year.
“Clearly the weakness was not isolated to new construction in July. In a rising rate environment would-be-homebuyers were quick to take advantage of record low interest rates before borrowing costs increased. However, the bounce in activity at the end of the second quarter appears to be fleeting with housing market momentum still positive but waning. Going forward, any additional increase in financing costs will only dampen demand further without job creation and income growth to offset the cost,” she said.
URL to original article: http://www.housingwire.com/articles/26486-pending-home-sales-drop-13
For further information on Fresno Real Estate check: http://www.londonproperties.com
Wednesday, August 28, 2013
Multifamily demand outpaces supply
Source: Housingwire
By: Megan Hopkins
As home prices and mortgage rates rise, it will become more difficult for potential homebuyers to purchase a home in light of today's tighter lending standards. With homeownership no longer an option for many, demand for rental properties is on course to keep outpacing housing supply, investors in the space say. In fact, according to an infographic put together by Alan Feldman, CEO of Resource Real Estate, a minimum of 240,000 new apartments each year is needed to meet expected demand levels for the next seven years. To date, only about 130,000 new apartments are expected to hit the market in 2013. "It’s very simple, the only people or companies that satisfy that demand are profit-seeking developers," said Feldman. However, when a developer builds an apartment building, the cost they have to pay on a per-square-foot basis is expensive. Developers can’t build a house or an apartment building and rent it for a price that would be affordable to the average worker that makes $30,000-$60,000 per year, Feldman added. As a result, effective rents have grown a cumulative 22% over the past decade compared to single-family homes, which measured 4.1% above the median price in 2002, Feldman notes in his data. On top of the cost, apartment buildings often take years to build. "This is the aftermath of the great financial crisis, which really stopped everything in 2008-2009," he explained. "It’s going to take a long time for things to return to the norm in terms of construction returning to satisfy that demand in apartments." Feldman’s company, Resource Real Estate, is working to add to the supply of available apartment rentals. His company revitalizes pre-existing multifamily properties, which are often dated, and makes them appealing to renters. Resource Real Estate focuses on the middle of the bell curve. In order to satisfy the demand for this cohort, the way we compete is we buy older properties — five, 10, 15 or 20-years old — at a discount to their replacement cost, said Feldman. Often they need some work or have been neglected. Plano, Texas-based American Communities, a real estate firm that focuses on acquiring and developing multifamily communities, recently acquired three multifamily properties in North Texas to benefit from the ongoing uptick in demand. The real estate firm has already started working to renovate and upgrade the properties. “Within hours of closing on the properties, our maintenance team was on site to complete needed repairs,” said Lisa Holcomb, chief operating officer at American Communities. As Feldman noted, the quality of rental housing stock right now is just not that good. “[Renovating] enables us to deliver rental housing affordably to the workforce,” he said. Feldman added that his company has markets throughout the country, but typically focuses on cities where there’s job generation — something that he claims will be necessary in order to level off the supply and demand that the multifamily segment is seeing right now. "You’re going to need to see job growth first because job growth will ultimately improve consumer confidence," he said. "It will come back when jobs come back."
URL to original article: http://www.housingwire.com/articles/26475-multifamily-demand-outpaces-supply
For further information on Fresno Real Estate check: http://www.londonproperties.com
By: Megan Hopkins
As home prices and mortgage rates rise, it will become more difficult for potential homebuyers to purchase a home in light of today's tighter lending standards. With homeownership no longer an option for many, demand for rental properties is on course to keep outpacing housing supply, investors in the space say. In fact, according to an infographic put together by Alan Feldman, CEO of Resource Real Estate, a minimum of 240,000 new apartments each year is needed to meet expected demand levels for the next seven years. To date, only about 130,000 new apartments are expected to hit the market in 2013. "It’s very simple, the only people or companies that satisfy that demand are profit-seeking developers," said Feldman. However, when a developer builds an apartment building, the cost they have to pay on a per-square-foot basis is expensive. Developers can’t build a house or an apartment building and rent it for a price that would be affordable to the average worker that makes $30,000-$60,000 per year, Feldman added. As a result, effective rents have grown a cumulative 22% over the past decade compared to single-family homes, which measured 4.1% above the median price in 2002, Feldman notes in his data. On top of the cost, apartment buildings often take years to build. "This is the aftermath of the great financial crisis, which really stopped everything in 2008-2009," he explained. "It’s going to take a long time for things to return to the norm in terms of construction returning to satisfy that demand in apartments." Feldman’s company, Resource Real Estate, is working to add to the supply of available apartment rentals. His company revitalizes pre-existing multifamily properties, which are often dated, and makes them appealing to renters. Resource Real Estate focuses on the middle of the bell curve. In order to satisfy the demand for this cohort, the way we compete is we buy older properties — five, 10, 15 or 20-years old — at a discount to their replacement cost, said Feldman. Often they need some work or have been neglected. Plano, Texas-based American Communities, a real estate firm that focuses on acquiring and developing multifamily communities, recently acquired three multifamily properties in North Texas to benefit from the ongoing uptick in demand. The real estate firm has already started working to renovate and upgrade the properties. “Within hours of closing on the properties, our maintenance team was on site to complete needed repairs,” said Lisa Holcomb, chief operating officer at American Communities. As Feldman noted, the quality of rental housing stock right now is just not that good. “[Renovating] enables us to deliver rental housing affordably to the workforce,” he said. Feldman added that his company has markets throughout the country, but typically focuses on cities where there’s job generation — something that he claims will be necessary in order to level off the supply and demand that the multifamily segment is seeing right now. "You’re going to need to see job growth first because job growth will ultimately improve consumer confidence," he said. "It will come back when jobs come back."
URL to original article: http://www.housingwire.com/articles/26475-multifamily-demand-outpaces-supply
For further information on Fresno Real Estate check: http://www.londonproperties.com
Tuesday, August 27, 2013
Central Valley foreclosure rates fall in June
Source: The Business Journal
Foreclosure rates in Fresno decreased for the month of June over the same period last year, according to newly released data from CoreLogic, a property information, analytics and services provider in the United States and Australia. The CoreLogic data shows that the rate of Fresno area foreclosures among outstanding mortgage loans was 1.30 percent for the month of June, a decrease of 1.30 percentage points compared to June of 2012 when the rate was 2.6 percent. Foreclosure activity in Fresno was lower than the national foreclosure rate, which was 2.49 percent for June. Also in Fresno, the mortgage delinquency rate fell. According to CoreLogic data for June, 4.5 percent of mortgage loans were 90 days or more delinquent compared to 6.65 percent for the same period last year, representing a decrease of 2.15 percentage points. MADERA CoreLogic reported that foreclosure rates in Madera-Chowchilla decreased for the month of June over the same period last year. The rate of Madera-Chowchilla area foreclosures among outstanding mortgage loans was 1.47 percent for the month of June, a decrease of 1.59 percentage points compared to June of 2012 when the rate was 3.06 percent. Also in Madera-Chowchilla, the mortgage delinquency rate decreased. According to CoreLogic data for June, 4.72 percent of mortgage loans were 90 days or more delinquent compared to 7.62 percent for the same period last year, representing a decrease of 2.90 percentage points. HANFORD-CORCORAN CoreLogic data shows that foreclosure rates in Hanford-Corcoran decreased for the month of June over the same period last year. The rate of Hanford-Corcoran area foreclosures among outstanding mortgage loans was 1.47 percent for the month of June, a decrease of 0.98 percentage points compared to June of 2012 when the rate was 2.45 percent. Also in Hanford-Corcoran, the mortgage delinquency rate decreased. According to CoreLogic data for June, 5.4 percent of mortgage loans were 90 days or more delinquent compared to 7.04 percent for the same period last year, representing a decrease of 1.64 percentage points. VISALIA-PORTERVILLE Foreclosure rates in Visalia-Porterville decreased for the month of June over the same period last year. The CoreLogic data shows that the rate of Visalia-Porterville area foreclosures among outstanding mortgage loans was 1.28 percent for the month of June, a decrease of 1.45 percentage points compared to June of 2012 when the rate was 2.73 percent. Also in Visalia-Porterville, the mortgage delinquency rate fell. According to CoreLogic data for June, 4.50 percent of mortgage loans were 90 days or more delinquent compared to 6.81 percent for the same period last year, representing a decrease of 2.31 percentage points.
URL to original article: http://thebusinessjournal.com/news/real-estate/7616-central-valley-foreclosure-rates-fall-in-june
For further information on Fresno Real Estate check: http://www.londonproperties.com
Foreclosure rates in Fresno decreased for the month of June over the same period last year, according to newly released data from CoreLogic, a property information, analytics and services provider in the United States and Australia. The CoreLogic data shows that the rate of Fresno area foreclosures among outstanding mortgage loans was 1.30 percent for the month of June, a decrease of 1.30 percentage points compared to June of 2012 when the rate was 2.6 percent. Foreclosure activity in Fresno was lower than the national foreclosure rate, which was 2.49 percent for June. Also in Fresno, the mortgage delinquency rate fell. According to CoreLogic data for June, 4.5 percent of mortgage loans were 90 days or more delinquent compared to 6.65 percent for the same period last year, representing a decrease of 2.15 percentage points. MADERA CoreLogic reported that foreclosure rates in Madera-Chowchilla decreased for the month of June over the same period last year. The rate of Madera-Chowchilla area foreclosures among outstanding mortgage loans was 1.47 percent for the month of June, a decrease of 1.59 percentage points compared to June of 2012 when the rate was 3.06 percent. Also in Madera-Chowchilla, the mortgage delinquency rate decreased. According to CoreLogic data for June, 4.72 percent of mortgage loans were 90 days or more delinquent compared to 7.62 percent for the same period last year, representing a decrease of 2.90 percentage points. HANFORD-CORCORAN CoreLogic data shows that foreclosure rates in Hanford-Corcoran decreased for the month of June over the same period last year. The rate of Hanford-Corcoran area foreclosures among outstanding mortgage loans was 1.47 percent for the month of June, a decrease of 0.98 percentage points compared to June of 2012 when the rate was 2.45 percent. Also in Hanford-Corcoran, the mortgage delinquency rate decreased. According to CoreLogic data for June, 5.4 percent of mortgage loans were 90 days or more delinquent compared to 7.04 percent for the same period last year, representing a decrease of 1.64 percentage points. VISALIA-PORTERVILLE Foreclosure rates in Visalia-Porterville decreased for the month of June over the same period last year. The CoreLogic data shows that the rate of Visalia-Porterville area foreclosures among outstanding mortgage loans was 1.28 percent for the month of June, a decrease of 1.45 percentage points compared to June of 2012 when the rate was 2.73 percent. Also in Visalia-Porterville, the mortgage delinquency rate fell. According to CoreLogic data for June, 4.50 percent of mortgage loans were 90 days or more delinquent compared to 6.81 percent for the same period last year, representing a decrease of 2.31 percentage points.
URL to original article: http://thebusinessjournal.com/news/real-estate/7616-central-valley-foreclosure-rates-fall-in-june
For further information on Fresno Real Estate check: http://www.londonproperties.com
Friday, August 23, 2013
Are real estate agents really needed?
Source: Housingwire
In the wake of the RE/MAX (RMAX) IPO earlier this week, the WaPo's Wonkblog asks: why do real estate agents still exist? It's a question that is sure to get the gander up of many of those in the real estate community, of course. From the WaPo: But wait–real estate agents? Wasn’t the internet supposed to drive them out of business? The online age has been hard on all kinds of middlemen, after all. Travel agents, for example, rendered obsolete by Orbitz and Expedia. Soft goods retailers, for another, outpaced by Amazon. The effect should be similar with people who sell homes: What do they have but what they know? And what of that can’t be better figured out through unbiased, publicly available data, crunched and presented on Web sites like Zillow and Trulia for free? And yet, real estate agents are still with us.
Why do real estate agents still exist?
By Lydia DePillis
On Tuesday, the quintessentially mainstream American real estate brokerage–Re/Max–went public. The housing market is hot enough, its initial filing explained, that raising investor cash could launch it into markets around the country it hadn’t yet reached. But wait–real estate agents? Wasn’t the internet supposed to drive them out of business? The online age has been hard on all kinds of middlemen, after all. Travel agents, for example, rendered obsolete by Orbitz and Expedia. Soft goods retailers, for another, outpaced by Amazon. The effect should be similar with people who sell homes: What do they have but what they know? And what of that can’t be better figured out through unbiased, publicly available data, crunched and presented on Web sites like Zillow and Trulia for free? And yet, real estate agents are still with us. Sure, their numbers declined during the housing crash, and haven’t quite recovered: But the sector may have been overinflated anyway. During the boom, real estate was considered a fast way to make easy money, and the unserious didn’t survive when sales dried up. “I think it benefited the profession, because it got a lot of people out of it that shouldn’t have been in it,” says Lindsay Reishman, who runs his own brokerage in Washington. And now, according to the National Association of Realtors, agents are as widely used as ever: 89 percent of buyers retained one in 2012, up from 69 percent in 2001. It’s the same on the seller side, where only 9 percent sold a home without an agent, down from a high of 20 percent in 1987. According to the Bureau of Labor Statistics, they made an annual mean wage of $51,170, which is down from a high of $55,000 in 2008, but still up from $42,000 in 2003. There are a few reasons why agents are still around. - The post-crash world is more complex: The housing crash and ensuing tighter lending standards, as well as the prevalence of foreclosures and short sales, have made the average transaction harder to navigate without expert help. Getting financing and negotiating tricky contracts, for example, probably shouldn’t be done on your own. “There’s always something doing down the pike that makes the process more complicated,” says Scott MacDonald, who runs a Re/Max brokerage in Chantilly, Va. - The internet improves productivity: When buyers can find out the homes they want through online research, an agent has to spend less time touring them around. Then, they can just come in and help with closing, and pick up the same commission. Some sites, like Redfin, offer lower rates for less wraparound service–but even Redfin decided last year to flesh out its bare-bones model to cover more home tours, and increased rates for buyers. (That could change more with services like Jason’s House, which allows agents to bid on buyers who only need a few specific tasks performed). - The internet increases agent leverage over brokers: In most states, agents have to affiliate with a brokerage, like Re/Max, Long & Foster, or Coldwell Banker. But when they can self-promote online, they don’t need as much in return. “As agents over time were able to market themselves directly to the consumer, that puts the squeeze on brokers,” says Reishman. “Agents are in a position where they can keep more of their money, because they’re not reliant on the brokerage to get their business.” To adapt and add value, brokerages have scaled back on their office space–more agents now work from home, rather than a private cubicle–and offer trainings to deal with different market conditions, like house flippers and investors. - People still don’t trust cheap things: Buying a home is a big decision, and people don’t tend to want to take a risk on a cut-rate agent, which is why there hasn’t been much undercutting or negotiation of commissions. “I think it does take place, but at least my bet is that at the end of the day, this is the biggest asset they’ve ever owned, so if you can make people believe you’ll handle that process correctly, people are wiling to pay for it,” says Reishman. “I’ve been thinking seriously about saying, my commissions are going to be 8 percent, and people think, this guy is really good!”
URL to original article: http://www.housingwire.com/articles/26392-are-real-estate-agents-really-needed
For further information on Fresno Real Estate check: http://www.londonproperties.com
In the wake of the RE/MAX (RMAX) IPO earlier this week, the WaPo's Wonkblog asks: why do real estate agents still exist? It's a question that is sure to get the gander up of many of those in the real estate community, of course. From the WaPo: But wait–real estate agents? Wasn’t the internet supposed to drive them out of business? The online age has been hard on all kinds of middlemen, after all. Travel agents, for example, rendered obsolete by Orbitz and Expedia. Soft goods retailers, for another, outpaced by Amazon. The effect should be similar with people who sell homes: What do they have but what they know? And what of that can’t be better figured out through unbiased, publicly available data, crunched and presented on Web sites like Zillow and Trulia for free? And yet, real estate agents are still with us.
Why do real estate agents still exist?
By Lydia DePillis
On Tuesday, the quintessentially mainstream American real estate brokerage–Re/Max–went public. The housing market is hot enough, its initial filing explained, that raising investor cash could launch it into markets around the country it hadn’t yet reached. But wait–real estate agents? Wasn’t the internet supposed to drive them out of business? The online age has been hard on all kinds of middlemen, after all. Travel agents, for example, rendered obsolete by Orbitz and Expedia. Soft goods retailers, for another, outpaced by Amazon. The effect should be similar with people who sell homes: What do they have but what they know? And what of that can’t be better figured out through unbiased, publicly available data, crunched and presented on Web sites like Zillow and Trulia for free? And yet, real estate agents are still with us. Sure, their numbers declined during the housing crash, and haven’t quite recovered: But the sector may have been overinflated anyway. During the boom, real estate was considered a fast way to make easy money, and the unserious didn’t survive when sales dried up. “I think it benefited the profession, because it got a lot of people out of it that shouldn’t have been in it,” says Lindsay Reishman, who runs his own brokerage in Washington. And now, according to the National Association of Realtors, agents are as widely used as ever: 89 percent of buyers retained one in 2012, up from 69 percent in 2001. It’s the same on the seller side, where only 9 percent sold a home without an agent, down from a high of 20 percent in 1987. According to the Bureau of Labor Statistics, they made an annual mean wage of $51,170, which is down from a high of $55,000 in 2008, but still up from $42,000 in 2003. There are a few reasons why agents are still around. - The post-crash world is more complex: The housing crash and ensuing tighter lending standards, as well as the prevalence of foreclosures and short sales, have made the average transaction harder to navigate without expert help. Getting financing and negotiating tricky contracts, for example, probably shouldn’t be done on your own. “There’s always something doing down the pike that makes the process more complicated,” says Scott MacDonald, who runs a Re/Max brokerage in Chantilly, Va. - The internet improves productivity: When buyers can find out the homes they want through online research, an agent has to spend less time touring them around. Then, they can just come in and help with closing, and pick up the same commission. Some sites, like Redfin, offer lower rates for less wraparound service–but even Redfin decided last year to flesh out its bare-bones model to cover more home tours, and increased rates for buyers. (That could change more with services like Jason’s House, which allows agents to bid on buyers who only need a few specific tasks performed). - The internet increases agent leverage over brokers: In most states, agents have to affiliate with a brokerage, like Re/Max, Long & Foster, or Coldwell Banker. But when they can self-promote online, they don’t need as much in return. “As agents over time were able to market themselves directly to the consumer, that puts the squeeze on brokers,” says Reishman. “Agents are in a position where they can keep more of their money, because they’re not reliant on the brokerage to get their business.” To adapt and add value, brokerages have scaled back on their office space–more agents now work from home, rather than a private cubicle–and offer trainings to deal with different market conditions, like house flippers and investors. - People still don’t trust cheap things: Buying a home is a big decision, and people don’t tend to want to take a risk on a cut-rate agent, which is why there hasn’t been much undercutting or negotiation of commissions. “I think it does take place, but at least my bet is that at the end of the day, this is the biggest asset they’ve ever owned, so if you can make people believe you’ll handle that process correctly, people are wiling to pay for it,” says Reishman. “I’ve been thinking seriously about saying, my commissions are going to be 8 percent, and people think, this guy is really good!”
URL to original article: http://www.housingwire.com/articles/26392-are-real-estate-agents-really-needed
For further information on Fresno Real Estate check: http://www.londonproperties.com
Thursday, August 22, 2013
Report: Distressed sales mostly down in Valley
Source: The Business Journal
Distressed home sales became a little scarcer in July, but that wasn't true for some Valley counties. According to the California Association of Realtors, distressed sales, which include short sales, sales of bank-owned properties and other foreclosure sales, dropped to 32 percent of all home sales in Fresno County. That's down from 36 percent in June and 58 percent in July 2012. Kings County saw an even bigger drop, falling to 31 percent compared to 44 percent the prior month. July 2012 percentages weren't available for the county. Madera County had no change from June with distressed sales accounting for 33 percent of home sales. The share was down quite a bit from last year, however, when distressed sales made up 74 percent of the total. Distressed sales actually trended upwards in Tulare County, going from a 27 percent share in June to 31 percent in July. Both are down from 62 percent in July 2012. Statewide, distressed sales made up 17 percent of all home sales in July, down from 20 percent the month before and 41 percent a year ago. Of California's home sales, the share of short sales was was at its lowest point since April 2009 at 11.6 percent in July, down from 12.9 percent in June and 22.7 percent last year. The share of real estate-owned sales, including bank-owned homes, dropped to 5 percent compared to 6.6 percent in June and 17.7 percent a year ago. Equity sales, or non-distressed property sales, climbed to 82.9 percent compared to 79.9 percent in June and 59.2 percent in July 2012. The available supply of homes was essentially flat from June but remained tight. The unsold inventory index or real estate-owned homes, or number of months to deplete the supply of homes at the current sales rate, stood at 2.1 months in July compared to 1.8 months in June. The index for short sales inched up from 2.4 months to 2.5 months while the index for equity sales dropped from 3.1 months to 3 months.
URL to original article: http://www.thebusinessjournal.com/news/real-estate/7359-report-distressed-sales-mostly-down-in-valley
For further information on Fresno Real Estate check: http://www.londonproperties.com
Distressed home sales became a little scarcer in July, but that wasn't true for some Valley counties. According to the California Association of Realtors, distressed sales, which include short sales, sales of bank-owned properties and other foreclosure sales, dropped to 32 percent of all home sales in Fresno County. That's down from 36 percent in June and 58 percent in July 2012. Kings County saw an even bigger drop, falling to 31 percent compared to 44 percent the prior month. July 2012 percentages weren't available for the county. Madera County had no change from June with distressed sales accounting for 33 percent of home sales. The share was down quite a bit from last year, however, when distressed sales made up 74 percent of the total. Distressed sales actually trended upwards in Tulare County, going from a 27 percent share in June to 31 percent in July. Both are down from 62 percent in July 2012. Statewide, distressed sales made up 17 percent of all home sales in July, down from 20 percent the month before and 41 percent a year ago. Of California's home sales, the share of short sales was was at its lowest point since April 2009 at 11.6 percent in July, down from 12.9 percent in June and 22.7 percent last year. The share of real estate-owned sales, including bank-owned homes, dropped to 5 percent compared to 6.6 percent in June and 17.7 percent a year ago. Equity sales, or non-distressed property sales, climbed to 82.9 percent compared to 79.9 percent in June and 59.2 percent in July 2012. The available supply of homes was essentially flat from June but remained tight. The unsold inventory index or real estate-owned homes, or number of months to deplete the supply of homes at the current sales rate, stood at 2.1 months in July compared to 1.8 months in June. The index for short sales inched up from 2.4 months to 2.5 months while the index for equity sales dropped from 3.1 months to 3 months.
URL to original article: http://www.thebusinessjournal.com/news/real-estate/7359-report-distressed-sales-mostly-down-in-valley
For further information on Fresno Real Estate check: http://www.londonproperties.com
Home price appreciation in hardest-hit states picks up
Source: Housingwire
By: Christina Mlynski
Adjusting from unusual lows
Upward momentum in home prices held steady in the second quarter, with prices rising 2.1% from the first quarter. This is the eighth consecutive quarterly price increase in the purchase-only adjusted index, according to the Federal Housing Finance Agency’s Home Price Index. "The housing market experienced one of its strongest quarters since the boom in the middle of the last decade," said FHFA principal economist Andrew Leventis. The seasonally adjusted index rose in 47 states, with Nevada, California, Nevada, Oregon and the District of Columbia seeing the steepest price hikes. The impressive rise in appreciation is due to a variety of factors, but the principle reason is that these states are adjusting from unusual lows. "Those states had very large increases during the boom, followed by a very large crash, so they’re having larger adjustment processes," explained National Association of Home Builders chief economist David Crowe. RealtyTrac vice president Daren Blomquist also noted that these were some of the hardest-hit states during the housing crisis, "so they have a deeper hole to climb out of than other markets." Another reason for the surge in home price appreciation within these states is the rise in demand, given the fact that weary buyers are now jumping back into the marketplace. Furthermore, these states have a more streamlined non-judicial foreclosure process that allows the markets to quickly clear distressed inventory, both housing experts noted. "[This sets] the stage for stronger home price recovery when compared to a state like Florida, which also was hit hard by the housing slump, but is still dealing with a lingering foreclosure problem thanks to a less efficient judicial foreclosure process," Blomquist said. Of the nine census divisions, the Pacific experienced the stronger increase, posting a 4.6% increase quarter-over-quarter and a 16.2% increase year-over-year, the FHFA pointed out. Home prices were weakest in the East South Central division, where prices increased 0.9% from the previous quarter. For the 100 most populated metropolitan areas in the nation, second-quarter price increases were greater in Orlando-Kissimmee-Sanford, Fla., where prices grew by 10%. On the reverse side, prices were weakest in Akron, OH, falling 3.9% over that period. Overall, Crowe said going forward the market may witness a few road bumps that could hinder home price appreciation, including talks around the Federal Reserve tapering its bond-buying program, as well as, rising interest rates. However, the bigger issue is tighter underwriting standards, which have kept people from qualifying for mortgages. "Rising rates are not going to have the traditional effect we’ve seen because we’ve already reduced the number of people who can qualify for a mortgage because of tight lending standards. If interest rates continue to rise then they will have a greater impact on appreciation," Crowe concluded.
URL to original article: http://www.housingwire.com/articles/26358-home-price-appreciation-in-hardest-hit-states-picks-up
For further information on Fresno Real Estate check: http://www.londonproperties.com
By: Christina Mlynski
Adjusting from unusual lows
Upward momentum in home prices held steady in the second quarter, with prices rising 2.1% from the first quarter. This is the eighth consecutive quarterly price increase in the purchase-only adjusted index, according to the Federal Housing Finance Agency’s Home Price Index. "The housing market experienced one of its strongest quarters since the boom in the middle of the last decade," said FHFA principal economist Andrew Leventis. The seasonally adjusted index rose in 47 states, with Nevada, California, Nevada, Oregon and the District of Columbia seeing the steepest price hikes. The impressive rise in appreciation is due to a variety of factors, but the principle reason is that these states are adjusting from unusual lows. "Those states had very large increases during the boom, followed by a very large crash, so they’re having larger adjustment processes," explained National Association of Home Builders chief economist David Crowe. RealtyTrac vice president Daren Blomquist also noted that these were some of the hardest-hit states during the housing crisis, "so they have a deeper hole to climb out of than other markets." Another reason for the surge in home price appreciation within these states is the rise in demand, given the fact that weary buyers are now jumping back into the marketplace. Furthermore, these states have a more streamlined non-judicial foreclosure process that allows the markets to quickly clear distressed inventory, both housing experts noted. "[This sets] the stage for stronger home price recovery when compared to a state like Florida, which also was hit hard by the housing slump, but is still dealing with a lingering foreclosure problem thanks to a less efficient judicial foreclosure process," Blomquist said. Of the nine census divisions, the Pacific experienced the stronger increase, posting a 4.6% increase quarter-over-quarter and a 16.2% increase year-over-year, the FHFA pointed out. Home prices were weakest in the East South Central division, where prices increased 0.9% from the previous quarter. For the 100 most populated metropolitan areas in the nation, second-quarter price increases were greater in Orlando-Kissimmee-Sanford, Fla., where prices grew by 10%. On the reverse side, prices were weakest in Akron, OH, falling 3.9% over that period. Overall, Crowe said going forward the market may witness a few road bumps that could hinder home price appreciation, including talks around the Federal Reserve tapering its bond-buying program, as well as, rising interest rates. However, the bigger issue is tighter underwriting standards, which have kept people from qualifying for mortgages. "Rising rates are not going to have the traditional effect we’ve seen because we’ve already reduced the number of people who can qualify for a mortgage because of tight lending standards. If interest rates continue to rise then they will have a greater impact on appreciation," Crowe concluded.
URL to original article: http://www.housingwire.com/articles/26358-home-price-appreciation-in-hardest-hit-states-picks-up
For further information on Fresno Real Estate check: http://www.londonproperties.com
Don’t expect the baby boomers to bail out the housing market
Source: Housingwire
By: Kerri Ann Panchuk
It's who follows them that matters...
As the Baby Boomers head into their golden years, it’s clear this generation has rightfully earned its reputation as the “change agents" of America. From the economy to politics, the children of the ‘greatest generation’ managed to shape the global marketplace for the past three decades. But if you’re counting on them to save housing – given their higher levels of wealth – think again. If anything, market analysts are worried the end of the Baby Boom era is a potential death knell for housing – or at least for the housing market as we’ve known it. The Washington Post recently sounded the warning alarm, citing a report from David Versel of the Center for Regional Analysis at George Mason University. From Versel’s perspective, the millennial generation is filling in Washington D.C.’s urban areas. While this is good news, he fears a sell-off of more traditional suburban homes owned by boomers in the D.C. region could create a market imbalance, where housing supply far outpaces demand. As the Millenial generation (1980-to-2000) shifts to more interactive, urban communities in parts of the country, boomers may be looking to downsize or stay in place. But if there is noone to acquire their properties, the market may undergo a seismic shift. The Washington Post cites Versel as saying: “You have all this inventory that’s going to turn over for the first time in a generation, and nobody knows if there’s sufficient demand to fill that inventory." But the consensus is noone really knows where we’re going until we get there. The larger macroeconomic question is whether the next two generations, Gen X and the Millenials, will obtain the job security and income levels needed to buy from the boomers or purchase new homes. Without that question answered, the rest remains a mystery.
URL to original article: http://www.housingwire.com/blogs/1-rewired/post/26326-dont-expect-the-baby-boomers-to-bail-out-the-housing-market
For further information on Fresno Real Estate check: http://www.londonproperties.com
By: Kerri Ann Panchuk
It's who follows them that matters...
As the Baby Boomers head into their golden years, it’s clear this generation has rightfully earned its reputation as the “change agents" of America. From the economy to politics, the children of the ‘greatest generation’ managed to shape the global marketplace for the past three decades. But if you’re counting on them to save housing – given their higher levels of wealth – think again. If anything, market analysts are worried the end of the Baby Boom era is a potential death knell for housing – or at least for the housing market as we’ve known it. The Washington Post recently sounded the warning alarm, citing a report from David Versel of the Center for Regional Analysis at George Mason University. From Versel’s perspective, the millennial generation is filling in Washington D.C.’s urban areas. While this is good news, he fears a sell-off of more traditional suburban homes owned by boomers in the D.C. region could create a market imbalance, where housing supply far outpaces demand. As the Millenial generation (1980-to-2000) shifts to more interactive, urban communities in parts of the country, boomers may be looking to downsize or stay in place. But if there is noone to acquire their properties, the market may undergo a seismic shift. The Washington Post cites Versel as saying: “You have all this inventory that’s going to turn over for the first time in a generation, and nobody knows if there’s sufficient demand to fill that inventory." But the consensus is noone really knows where we’re going until we get there. The larger macroeconomic question is whether the next two generations, Gen X and the Millenials, will obtain the job security and income levels needed to buy from the boomers or purchase new homes. Without that question answered, the rest remains a mystery.
URL to original article: http://www.housingwire.com/blogs/1-rewired/post/26326-dont-expect-the-baby-boomers-to-bail-out-the-housing-market
For further information on Fresno Real Estate check: http://www.londonproperties.com
Wednesday, August 21, 2013
Granville seeks rule change to farm Running Horse site
Source: The Business Journal
Written by Chuck Harvey
Granville Homes seeks a change to the City of Fresno’s zoning ordinance that would allow it to farm almonds at the former Running Horse site in West Fresno. The move would permit commercial agriculture operations on vacant property zoned R-1 — single-family residential — within city limits. The Fresno Planning Commission will consider a request at its 6 p.m. hearing tonight where the proposed change is expected to receive some opposition from community gardeners who feel that Granville President Darius Assemi is passing off the planned 360-acre almond ranch as a community garden. An option for community gardens in open spaces and residential zones is part of the proposed zoning amendment. Community gardeners already grow crops on small plots in the downtown area. Also, small immigrant farmers grow specialty crops in Fresno, often on rented plots in the city. Assemi said he has no community garden plans for Mission Ranch, the almond enterprise he plans at the site of the failed golf course and residential project purchased by Granville earlier this year. He added it would be a straightforward farm operation until market demand allows for the property to revert to residential construction. The community gardeners see the amended zoning ordinance as a threat to community gardening. They fear that potential problems, including high water use, could ultimately threaten the community garden concept, which depends on city support. The request for a change in the city’s zoning ordinance followed the purchase of the former Running Horse property by Assemi. The Mission Ranch site is bordered by Whitesbridge Avenue, Church Avenue, Marks Avenue and Hughes Avenue. The zoning amendment would change the way farms and community gardens are regulated in Fresno. Mike Sanchez, planning manager in the city’s development and services division, said that in amending zoning policy regarding farming on properties zoned R-1, various aspects of land use were considered, including community gardens. If approved, R-1 property owners could farm the entire property, farm most of the land and allow a portion to be used for a community garden, or turn the entire empty lot into a community garden. Sanchez said it is better to allow farming operations than to let a lot sit idle and have trash dumped on it. He added that planners saw community gardens as a viable option in the ordinance. Planning officials point out that community gardening as a land use has not yet been formally classified in the city’s zoning ordinance to delineate which zone districts may allow the use and under what circumstances. They point out that the recent economic downturn has stalled construction of several subdivisions, which have prime agricultural soil, available surface water and existing wells. They point out that allowing such properties to be farmed pending resumption of development can provide tangible economic benefit that extends beyond the agricultural operation itself. Fresno community gardener Don Simmons said he is concerned that Granville Homes is trying to skirt the rules for its project. “They are trying to amend current zoning rules around community gardens and urban ag, claiming that their project fits those descriptions,” Simmons said. “A 360-acre ranch is nothing like a community garden or the Gragston Family farm.” Gragston Family Farm grows a variety of fresh fruits and vegetables on an urban farm in the Lowell neighborhood of Fresno. Tom Matott, community garden coordinator for Metro Ministries in Fresno, said he is confused as to why the city would amend and set a code for community gardens and urban agriculture. He said large farms are a lot different than community gardens, which generally cover only about a quarter acre. Also community gardeners have been working with the city for inclusion of rules in the updated general plan, Matott said. Matott added that Fresno currently has about 18 community gardens spread throughout the city. Simmons said a community farm is a way to put food on the table. “We worked long and hard to get the permits to do this kind of gardening,” he said. Simmons, who also serves as president and senior consultant of Creative Potential Consulting and training in Fresno, grows crops on 4-foot by 11-foot plots in the Lowell community where 32 spaces are available at Belmont and Poplar avenues near Highway 180.
URL to original article: http://www.thebusinessjournal.com/news/government-and-politics/7345-granville-seeks-ordinance-change-to-farm-running-horse-site
For further information on Fresno Real Estate check: http://www.londonproperties.com
Written by Chuck Harvey
Granville Homes seeks a change to the City of Fresno’s zoning ordinance that would allow it to farm almonds at the former Running Horse site in West Fresno. The move would permit commercial agriculture operations on vacant property zoned R-1 — single-family residential — within city limits. The Fresno Planning Commission will consider a request at its 6 p.m. hearing tonight where the proposed change is expected to receive some opposition from community gardeners who feel that Granville President Darius Assemi is passing off the planned 360-acre almond ranch as a community garden. An option for community gardens in open spaces and residential zones is part of the proposed zoning amendment. Community gardeners already grow crops on small plots in the downtown area. Also, small immigrant farmers grow specialty crops in Fresno, often on rented plots in the city. Assemi said he has no community garden plans for Mission Ranch, the almond enterprise he plans at the site of the failed golf course and residential project purchased by Granville earlier this year. He added it would be a straightforward farm operation until market demand allows for the property to revert to residential construction. The community gardeners see the amended zoning ordinance as a threat to community gardening. They fear that potential problems, including high water use, could ultimately threaten the community garden concept, which depends on city support. The request for a change in the city’s zoning ordinance followed the purchase of the former Running Horse property by Assemi. The Mission Ranch site is bordered by Whitesbridge Avenue, Church Avenue, Marks Avenue and Hughes Avenue. The zoning amendment would change the way farms and community gardens are regulated in Fresno. Mike Sanchez, planning manager in the city’s development and services division, said that in amending zoning policy regarding farming on properties zoned R-1, various aspects of land use were considered, including community gardens. If approved, R-1 property owners could farm the entire property, farm most of the land and allow a portion to be used for a community garden, or turn the entire empty lot into a community garden. Sanchez said it is better to allow farming operations than to let a lot sit idle and have trash dumped on it. He added that planners saw community gardens as a viable option in the ordinance. Planning officials point out that community gardening as a land use has not yet been formally classified in the city’s zoning ordinance to delineate which zone districts may allow the use and under what circumstances. They point out that the recent economic downturn has stalled construction of several subdivisions, which have prime agricultural soil, available surface water and existing wells. They point out that allowing such properties to be farmed pending resumption of development can provide tangible economic benefit that extends beyond the agricultural operation itself. Fresno community gardener Don Simmons said he is concerned that Granville Homes is trying to skirt the rules for its project. “They are trying to amend current zoning rules around community gardens and urban ag, claiming that their project fits those descriptions,” Simmons said. “A 360-acre ranch is nothing like a community garden or the Gragston Family farm.” Gragston Family Farm grows a variety of fresh fruits and vegetables on an urban farm in the Lowell neighborhood of Fresno. Tom Matott, community garden coordinator for Metro Ministries in Fresno, said he is confused as to why the city would amend and set a code for community gardens and urban agriculture. He said large farms are a lot different than community gardens, which generally cover only about a quarter acre. Also community gardeners have been working with the city for inclusion of rules in the updated general plan, Matott said. Matott added that Fresno currently has about 18 community gardens spread throughout the city. Simmons said a community farm is a way to put food on the table. “We worked long and hard to get the permits to do this kind of gardening,” he said. Simmons, who also serves as president and senior consultant of Creative Potential Consulting and training in Fresno, grows crops on 4-foot by 11-foot plots in the Lowell community where 32 spaces are available at Belmont and Poplar avenues near Highway 180.
URL to original article: http://www.thebusinessjournal.com/news/government-and-politics/7345-granville-seeks-ordinance-change-to-farm-running-horse-site
For further information on Fresno Real Estate check: http://www.londonproperties.com
New home builder sets out in Hanford, Tulare
Source: The Business Journal
New home builder San Joaquin Valley Homes is taking to the South Valley with two new subdivisions in Hanford and Tulare. The Visalia-based company recently broke ground on the Hartley Grove subdivision near 12th Avenue south of Highway 198 in Hanford and the Savannah neighborhood at Cross Avenue and West Street in Tulare. Models in Hartley Grove will be open for viewing near the end of September while the Savannah neighborhood will have models available near the end of October. Each neighborhood will feature five foor plans, with one- and two-story designs, ranging from 1,390 and 2,322 square feet. San Joaquin Valley Homes was was formed in March by Joe Leal, formerly with McMillin Homes and McMillin team members Jim Robinson and Randy Merrill as well as Don Faye of Presidio Residential. The company hopes to open as many as eight neighborhoods in Tulare, Kings and Kern counties by the summer of 2014. "Jim, Randy and I worked together for 15 years at The Allen Group and then at McMillin Homes, and we have learned a great deal over the years," said Leal, in a release. "We understand that homebuyers want a quality home that offers value. As a small company, we can deliver on that promise, and on our commitment to responsive, personal customer service." More information about the company or the new subdivisions can be found by calling (559) 732-2660.
URL to original article: http://www.thebusinessjournal.com/news/construction/7320-new-home-builder-sets-out-in-hanford-tulare
For further information on Fresno Real Estate check: http://www.londonproperties.com
New home builder San Joaquin Valley Homes is taking to the South Valley with two new subdivisions in Hanford and Tulare. The Visalia-based company recently broke ground on the Hartley Grove subdivision near 12th Avenue south of Highway 198 in Hanford and the Savannah neighborhood at Cross Avenue and West Street in Tulare. Models in Hartley Grove will be open for viewing near the end of September while the Savannah neighborhood will have models available near the end of October. Each neighborhood will feature five foor plans, with one- and two-story designs, ranging from 1,390 and 2,322 square feet. San Joaquin Valley Homes was was formed in March by Joe Leal, formerly with McMillin Homes and McMillin team members Jim Robinson and Randy Merrill as well as Don Faye of Presidio Residential. The company hopes to open as many as eight neighborhoods in Tulare, Kings and Kern counties by the summer of 2014. "Jim, Randy and I worked together for 15 years at The Allen Group and then at McMillin Homes, and we have learned a great deal over the years," said Leal, in a release. "We understand that homebuyers want a quality home that offers value. As a small company, we can deliver on that promise, and on our commitment to responsive, personal customer service." More information about the company or the new subdivisions can be found by calling (559) 732-2660.
URL to original article: http://www.thebusinessjournal.com/news/construction/7320-new-home-builder-sets-out-in-hanford-tulare
For further information on Fresno Real Estate check: http://www.londonproperties.com
Friday, August 16, 2013
FHA offers mortgage backing to the once bankrupt
Source: Housingwire
Borrowers qualify despite past foreclosures
Jacob Gaffney
Potential homeowners who fell on hard times during the recession are being offered a lifeline back into the housing market, via the Federal Housing Administration. According to a letter sent to mortgage lenders, the FHA said it would offer mortgage insurance to borrowers who, during the recession, filed for bankruptcy or lost their homes through a foreclosure or short-sale proceeding. The insurance is now available to those who can prove they are no longer financially compromised — and met all other FHA requirements. "FHA recognizes the hardships faced by these borrowers, and realizes that their credit histories may not fully reflect their true ability or propensity to repay a mortgage," the letter says. Besides the burden of proof on the borrower to demonstrate a recovery from the "economic event," the potential homeowner must also complete housing counseling. This event would need to result in a minimum loss of 20% of the household income. The FHA is requiring lenders to verify at least a year has passed since the foreclosure and the economic event is responsible for the loss of the home or bankruptcy.
URL to original article: http://www.housingwire.com/articles/26237-fha-expands-mortgage-backing-to-the-once-bankrupt
For further information on Fresno Real Estate check: http://www.londonproperties.com
Borrowers qualify despite past foreclosures
Jacob Gaffney
Potential homeowners who fell on hard times during the recession are being offered a lifeline back into the housing market, via the Federal Housing Administration. According to a letter sent to mortgage lenders, the FHA said it would offer mortgage insurance to borrowers who, during the recession, filed for bankruptcy or lost their homes through a foreclosure or short-sale proceeding. The insurance is now available to those who can prove they are no longer financially compromised — and met all other FHA requirements. "FHA recognizes the hardships faced by these borrowers, and realizes that their credit histories may not fully reflect their true ability or propensity to repay a mortgage," the letter says. Besides the burden of proof on the borrower to demonstrate a recovery from the "economic event," the potential homeowner must also complete housing counseling. This event would need to result in a minimum loss of 20% of the household income. The FHA is requiring lenders to verify at least a year has passed since the foreclosure and the economic event is responsible for the loss of the home or bankruptcy.
URL to original article: http://www.housingwire.com/articles/26237-fha-expands-mortgage-backing-to-the-once-bankrupt
For further information on Fresno Real Estate check: http://www.londonproperties.com
California home sales surge
Source: Housingwire
An estimated 48,118 homes and condos sold in July
Christina Mlynski
A growing supply of properties in California caused a surge in new and resale homes and condos sold, with sales rising to a seven-year high in July, California-based research firm DataQuick posted. An estimated 48,118 new and resale homes and condos sold in July, up 17.3% from 41,027 in June and an increase of 21.8% from 39,507 sales a year earlier, the firm noted. Last month’s sales count was the highest for July since 66,929 homes sold back in the housing heyday of 2005. Additionally, last month was the first time California sales were above average for any month since September 2006. On a similar note, DataQuick revealed this week that July sales in Southern California came close to historic norms, falling just 0.5% below the average number of sales historically expected for the month of July. July sales in the past two decades have fallen as low as 30,596 sales in 1995 and as high as 71,886 in 2004. Last month’s sales were 3.8% above the average of 46,364 sales for all of July since 1988, when DataQuick began recording statistics. The median price paid for a home in California rose 3.1% to $363,000 in June and was also up 29.2% from $281,000 from a year earlier. Last month was the 17th consecutive month in which the state’s median sale price rose year-over-year. Of the existing homes sold in July, 8.4% were properties that were foreclosed on during the past year — the lowest level since July 2007. Meanwhile, short sales made up an estimated 14.6% of all homes that resold in July, down from an estimated 15.7% in June and 26% a year earlier. The average monthly mortgage payment that California buyers committed themselves to pay in July was $1,457, up 58.3% from last year, but down 36.9% from the typical payment in spring 1989 — the peak of the prior real estate cycle, DataQuick revealed.
URL to original article: http://www.housingwire.com/articles/26223-california-home-sales-surge
For further information on Fresno Real Estate check: http://www.londonproperties.com
An estimated 48,118 homes and condos sold in July
Christina Mlynski
A growing supply of properties in California caused a surge in new and resale homes and condos sold, with sales rising to a seven-year high in July, California-based research firm DataQuick posted. An estimated 48,118 new and resale homes and condos sold in July, up 17.3% from 41,027 in June and an increase of 21.8% from 39,507 sales a year earlier, the firm noted. Last month’s sales count was the highest for July since 66,929 homes sold back in the housing heyday of 2005. Additionally, last month was the first time California sales were above average for any month since September 2006. On a similar note, DataQuick revealed this week that July sales in Southern California came close to historic norms, falling just 0.5% below the average number of sales historically expected for the month of July. July sales in the past two decades have fallen as low as 30,596 sales in 1995 and as high as 71,886 in 2004. Last month’s sales were 3.8% above the average of 46,364 sales for all of July since 1988, when DataQuick began recording statistics. The median price paid for a home in California rose 3.1% to $363,000 in June and was also up 29.2% from $281,000 from a year earlier. Last month was the 17th consecutive month in which the state’s median sale price rose year-over-year. Of the existing homes sold in July, 8.4% were properties that were foreclosed on during the past year — the lowest level since July 2007. Meanwhile, short sales made up an estimated 14.6% of all homes that resold in July, down from an estimated 15.7% in June and 26% a year earlier. The average monthly mortgage payment that California buyers committed themselves to pay in July was $1,457, up 58.3% from last year, but down 36.9% from the typical payment in spring 1989 — the peak of the prior real estate cycle, DataQuick revealed.
URL to original article: http://www.housingwire.com/articles/26223-california-home-sales-surge
For further information on Fresno Real Estate check: http://www.londonproperties.com
Thursday, August 15, 2013
Residential, retail in works for old J.C. Penney building
Source: The Business Journal
Written by Ben Keller, The Business Journal
The 90-year-old former J.C. Penney building on the Fulton Mall is getting new life with the announcement that new owner Shay Maghame will fill the space with retail and residential units. Maghame, a 69-year-old Los Angeles attorney and real estate broker, was joined by Fresno Mayor Ashley Swearengin this morning to present his plans for the building located at the corner of Tulare Street and Fulton Mall. Abandoned by the department store retailer in 1986, the four-story building will now be restored with 60 residential housing units and six more upscale lofts thanks to Maghame's investment. As well, the lower floor will be decked with retail space, while the basement will be renovated for a parking garage for 50 to 60 tenants. "The price will be moderate and there will be maybe 10 units reserved for lower rents," said Maghame. Dubbed El Diamanti, meaning "diamond" in Greek, the project is expected to take two years to complete. The building will be operated by Maghame's limited liability corporation, 959 Fulton Mall, Fresno based in Sherman Oaks. Designs were actually drawn up and a permit obtained for the project in 2009 and only needs to be renewed for development to move forward. Considering the city's passion in improving the Fulton Mall and how welcoming the administration has been, Maghame said that step shouldn't be a problem. "I have not seen in all the places I have worked and several cities in the United States and a lot of places abroad, the level of cooperation and the level of support I have recieved here in Fresno," he said. Maghame first came over to Fresno from Iran in 1963 where he earned his bachelor's degree in electrical engineering and met his wife. From there, he earned his master's degree in engineering and went on to make a name for himself as a contractor with projects in Los Angeles, San Bernardino, Turkey and Ethiopia, while also pursuing a profession in law and real estate. Maghame also owns East West Products Manufacturing & Services, Inc., which has a factory in Northeast Africa making construction materials like steel beams, roofing, sidings and bath tubs. Swearengin called Maghame's project the latest in a series of successes along the Fulton Mall and Downtown Fresno as a whole. In May, the Droge Building at Van Ness and Inyo Street was torn down to make way for a four-story residential/retail building, while the Penstar Group headed by develop Tom Richards is working on a proposal to restore the 1917 Bank of Italty building at Tulare Street and Fulton Mall. Sevak Khatchadourian, a Beverly Hills developer who owns The Pacific Southwest Building, is looking to open a restaurant and bar on the 15th floor and also bought the 1914 Helm Building on the Fulton Mall earlier this year with plans to fix it up for commercial tenants. In 2011, Fresno leasing agent Robert Ellis bought up the 122-year-old former Southern Pacific Railroad Depot on Tulare Street and renovated it to add more office space for new tenants like Clovis-based OfficeBay. As well, residential developer Granville Homes has taken to the downtown area with hundreds of new living units in the last several years. "All of these projects alone represent well over 600,000 square feet of new investment just on the Fulton Mall area alone in the last four and a half years I've been in office," Swearengin. Swearengin said she expects to attract even more investors to the area once more manageable building codes contained in the proposed Fulton Corridor Specific Plan are adopted by the city council next spring.
URL to original article: http://www.thebusinessjournal.com/news/development/7281-residential-retail-in-works-for-old-j-c-penney-building
For further information on Fresno Real Estate check: http://www.londonproperties.com
Written by Ben Keller, The Business Journal
The 90-year-old former J.C. Penney building on the Fulton Mall is getting new life with the announcement that new owner Shay Maghame will fill the space with retail and residential units. Maghame, a 69-year-old Los Angeles attorney and real estate broker, was joined by Fresno Mayor Ashley Swearengin this morning to present his plans for the building located at the corner of Tulare Street and Fulton Mall. Abandoned by the department store retailer in 1986, the four-story building will now be restored with 60 residential housing units and six more upscale lofts thanks to Maghame's investment. As well, the lower floor will be decked with retail space, while the basement will be renovated for a parking garage for 50 to 60 tenants. "The price will be moderate and there will be maybe 10 units reserved for lower rents," said Maghame. Dubbed El Diamanti, meaning "diamond" in Greek, the project is expected to take two years to complete. The building will be operated by Maghame's limited liability corporation, 959 Fulton Mall, Fresno based in Sherman Oaks. Designs were actually drawn up and a permit obtained for the project in 2009 and only needs to be renewed for development to move forward. Considering the city's passion in improving the Fulton Mall and how welcoming the administration has been, Maghame said that step shouldn't be a problem. "I have not seen in all the places I have worked and several cities in the United States and a lot of places abroad, the level of cooperation and the level of support I have recieved here in Fresno," he said. Maghame first came over to Fresno from Iran in 1963 where he earned his bachelor's degree in electrical engineering and met his wife. From there, he earned his master's degree in engineering and went on to make a name for himself as a contractor with projects in Los Angeles, San Bernardino, Turkey and Ethiopia, while also pursuing a profession in law and real estate. Maghame also owns East West Products Manufacturing & Services, Inc., which has a factory in Northeast Africa making construction materials like steel beams, roofing, sidings and bath tubs. Swearengin called Maghame's project the latest in a series of successes along the Fulton Mall and Downtown Fresno as a whole. In May, the Droge Building at Van Ness and Inyo Street was torn down to make way for a four-story residential/retail building, while the Penstar Group headed by develop Tom Richards is working on a proposal to restore the 1917 Bank of Italty building at Tulare Street and Fulton Mall. Sevak Khatchadourian, a Beverly Hills developer who owns The Pacific Southwest Building, is looking to open a restaurant and bar on the 15th floor and also bought the 1914 Helm Building on the Fulton Mall earlier this year with plans to fix it up for commercial tenants. In 2011, Fresno leasing agent Robert Ellis bought up the 122-year-old former Southern Pacific Railroad Depot on Tulare Street and renovated it to add more office space for new tenants like Clovis-based OfficeBay. As well, residential developer Granville Homes has taken to the downtown area with hundreds of new living units in the last several years. "All of these projects alone represent well over 600,000 square feet of new investment just on the Fulton Mall area alone in the last four and a half years I've been in office," Swearengin. Swearengin said she expects to attract even more investors to the area once more manageable building codes contained in the proposed Fulton Corridor Specific Plan are adopted by the city council next spring.
URL to original article: http://www.thebusinessjournal.com/news/development/7281-residential-retail-in-works-for-old-j-c-penney-building
For further information on Fresno Real Estate check: http://www.londonproperties.com
Regulations keep families from buying homes
Source: Housingwire
Regulators Are Set to Loosen New Mortgage Rules
By Karen Weise
In his State of the Union address, President Obama said overlapping regulations were keeping “responsible young families from buying their first home.” He called for change: “Let’s streamline the process, and help our economy grow.” Banking regulators apparently agree, and by the end of summer may propose new rules to simplify the mortgage market. Bloomberg News reports that by the end of August, regulators will release a “softer” version of rules overseeing how banks finance mortgages. The Dodd-Frank financial reform bill tasked regulators with writing rules that would force Wall Street to keep some skin in the game when they bundle mortgages into securities. Rather than letting banks pass all of the risk on to investors who buy the securities, the bill said banks must keep 5 percent of the deals on their own books. In 2011, regulators released their preliminary proposal for defining the clunkily-named “Qualified Residential Mortgage,” which are loans that wouldn’t need to comply with the rule. The proposal said banks wouldn’t need to retain the risk on loans to borrowers who put at least 20 percent down or spend less than 36 percent of their income on debt payments (such as monthly mortgage and credit-card bills). That prompted a huge outcry from the mortgage industry and some consumer advocates, who said the new rules would make it hard for people to get loans. Now the agencies are on the cusp of issuing a final version of the rules that is less strict. Banks would need only to keep a slice of the loans for homeowners who spend at least 43 percent of their monthly income paying debts, as Bloomberg News reported. This change brings the rules about mortgage securities closer in line to the other major change in mortgage lending—a related rule with the confusingly-similar name “Qualified Mortgage.” That new regulation comes from the Consumer Financial Protection Bureau, which outlined certain underwriting standards that, if banks follow, will provide lenders with protection from consumer lawsuits. It also uses the 43 percent limit as a cutoff point. By aligning QM and QRM, the road map is clearer for banks. They can still make loans that don’t fit the standards, but those mortgages will likely be more expensive because banks will have to keep some of the risk on their books (through QRM) and will have greater potential exposure to lawsuits (through QM). It also means that borrowers who spend less than 43 percent of their income on debts will have an easier time getting loans.
URL to original article: http://www.housingwire.com/articles/26213-regulations-keep-families-from-buying-homes
For further information on Fresno Real Estate check: http://www.londonproperties.com
Regulators Are Set to Loosen New Mortgage Rules
By Karen Weise
In his State of the Union address, President Obama said overlapping regulations were keeping “responsible young families from buying their first home.” He called for change: “Let’s streamline the process, and help our economy grow.” Banking regulators apparently agree, and by the end of summer may propose new rules to simplify the mortgage market. Bloomberg News reports that by the end of August, regulators will release a “softer” version of rules overseeing how banks finance mortgages. The Dodd-Frank financial reform bill tasked regulators with writing rules that would force Wall Street to keep some skin in the game when they bundle mortgages into securities. Rather than letting banks pass all of the risk on to investors who buy the securities, the bill said banks must keep 5 percent of the deals on their own books. In 2011, regulators released their preliminary proposal for defining the clunkily-named “Qualified Residential Mortgage,” which are loans that wouldn’t need to comply with the rule. The proposal said banks wouldn’t need to retain the risk on loans to borrowers who put at least 20 percent down or spend less than 36 percent of their income on debt payments (such as monthly mortgage and credit-card bills). That prompted a huge outcry from the mortgage industry and some consumer advocates, who said the new rules would make it hard for people to get loans. Now the agencies are on the cusp of issuing a final version of the rules that is less strict. Banks would need only to keep a slice of the loans for homeowners who spend at least 43 percent of their monthly income paying debts, as Bloomberg News reported. This change brings the rules about mortgage securities closer in line to the other major change in mortgage lending—a related rule with the confusingly-similar name “Qualified Mortgage.” That new regulation comes from the Consumer Financial Protection Bureau, which outlined certain underwriting standards that, if banks follow, will provide lenders with protection from consumer lawsuits. It also uses the 43 percent limit as a cutoff point. By aligning QM and QRM, the road map is clearer for banks. They can still make loans that don’t fit the standards, but those mortgages will likely be more expensive because banks will have to keep some of the risk on their books (through QRM) and will have greater potential exposure to lawsuits (through QM). It also means that borrowers who spend less than 43 percent of their income on debts will have an easier time getting loans.
URL to original article: http://www.housingwire.com/articles/26213-regulations-keep-families-from-buying-homes
For further information on Fresno Real Estate check: http://www.londonproperties.com
Builder confidence reaches highest level in eight years
Source: Housingwire
By: Brena Swanson
Builder confidence in the market for newly built, single-family homes rose three points to an August index score of 59, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index. This is the fourth consecutive monthly gain, bringing the index to its highest level in nearly eight years, the association noted. "Firming home prices and thinning inventories of homes for sale are contributing to an increased sense of urgency among those who are in the market," NAHB Chairman Rick Judson said. "Builder confidence continues to strengthen along with rising demand for a limited supply of new and existing homes in most local markets," noted NAHB Chief Economist David Crowe. “However, this positive momentum is being slowed by the ongoing headwinds of tight credit and low supplies of finished lots and labor,” he added. Additionally, two of the three components of the index posted gains in August. The component gauging current sales conditions increased three points to 62. Meanwhile, the index gauging sales expectations in the next six months gained a single point to 68. The traffic index for prospective buyers stayed frozen at 45.
URL to original article: http://www.housingwire.com/articles/26196-builder-confidence-reaches-highest-level-in-eight-years
For further information on Fresno Real Estate check: http://www.londonproperties.com
By: Brena Swanson
Builder confidence in the market for newly built, single-family homes rose three points to an August index score of 59, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index. This is the fourth consecutive monthly gain, bringing the index to its highest level in nearly eight years, the association noted. "Firming home prices and thinning inventories of homes for sale are contributing to an increased sense of urgency among those who are in the market," NAHB Chairman Rick Judson said. "Builder confidence continues to strengthen along with rising demand for a limited supply of new and existing homes in most local markets," noted NAHB Chief Economist David Crowe. “However, this positive momentum is being slowed by the ongoing headwinds of tight credit and low supplies of finished lots and labor,” he added. Additionally, two of the three components of the index posted gains in August. The component gauging current sales conditions increased three points to 62. Meanwhile, the index gauging sales expectations in the next six months gained a single point to 68. The traffic index for prospective buyers stayed frozen at 45.
URL to original article: http://www.housingwire.com/articles/26196-builder-confidence-reaches-highest-level-in-eight-years
For further information on Fresno Real Estate check: http://www.londonproperties.com
Tuesday, August 13, 2013
First-time homebuyers face overly restrictive mortgage market
Source: Housingwire
By: Christina Mlynski
Housing experts descended on Dallas for the Bipartisan Policy Center’s Housing America’s Future conference Tuesday, addressing the appetite many taxpayers have for homeownership, but the various roadblocks that remain. President Barack Obama reaffirmed the American Dream of homeownership last week, as he pointed out that one of the main principals of the middle class is to bring back equal chances of homeownership. In planning to offer a single application for the 30-year mortgage, the administration appears to tacitly support the product. The private market, has it turns out, isn't all-in on the 30-year mortgage as is the President. While the vast majority of American households want to own a home in the future, but with a shifting market dynamic, the key is to find a product that can fulfill the function of providing someone a home and also maintain homeownership, explained Michael Lea of San Diego State University. The group of taxpayers facing the biggest challenges is first-time homebuyers due to tight credit standards, student loan debt and limited inventory. For instance, first-time homebuyers accounted for 29% of units in June, down from 32% a year earlier, according to Leslie Smith of the National Association of Realtors. "First-time buyers have suffered under an overly restrictive lending environment. More than 90% of new homebuyers had to use a mortgage to purchase their first home," Smith said. While the 30-year, fixed-rate mortgage is the product currently in place for the majority of Americans to have access to homeownership, the majority of the panelists agreed that it’s not a prerequisite for homeownership and other products could and should be introduced into the market. From an investor standpoint, the 30-year FRM is a difficult instrument to fund and hedge, Lea stated. Furthermore, as policymakers continue to roll out various options for a new structure to the mortgage finance system, one of the main changes is the need for a healthy secondary market that uses government guarantees. As a result, various policymakers on Capitol Hill are aware of the needed government guarantees and have worked such a product into propped legislation — the Housing Finance Reform and Taxpayer Protection Act of 2013. Thus, it’s inevitable that a higher degree of private sector participation will lead to an increase in the cost of mortgages and as a result, many are hopeful the government will price accordingly, noted Ronald Rosenfeld of the Federal Housing Finance Board. Overall, access to affordable housing is critical for equal opportunities and while the 30-year, FRM was a tool kept in the government’s toolbox to provide homeownership; many market experts are open to the introduction of new mortgage products.
URL to original article: http://www.housingwire.com/articles/26138-barriers-remain-to-americans-seeking-homeownershp
For further information on Fresno Real Estate check: http://www.londonproperties.com
By: Christina Mlynski
Housing experts descended on Dallas for the Bipartisan Policy Center’s Housing America’s Future conference Tuesday, addressing the appetite many taxpayers have for homeownership, but the various roadblocks that remain. President Barack Obama reaffirmed the American Dream of homeownership last week, as he pointed out that one of the main principals of the middle class is to bring back equal chances of homeownership. In planning to offer a single application for the 30-year mortgage, the administration appears to tacitly support the product. The private market, has it turns out, isn't all-in on the 30-year mortgage as is the President. While the vast majority of American households want to own a home in the future, but with a shifting market dynamic, the key is to find a product that can fulfill the function of providing someone a home and also maintain homeownership, explained Michael Lea of San Diego State University. The group of taxpayers facing the biggest challenges is first-time homebuyers due to tight credit standards, student loan debt and limited inventory. For instance, first-time homebuyers accounted for 29% of units in June, down from 32% a year earlier, according to Leslie Smith of the National Association of Realtors. "First-time buyers have suffered under an overly restrictive lending environment. More than 90% of new homebuyers had to use a mortgage to purchase their first home," Smith said. While the 30-year, fixed-rate mortgage is the product currently in place for the majority of Americans to have access to homeownership, the majority of the panelists agreed that it’s not a prerequisite for homeownership and other products could and should be introduced into the market. From an investor standpoint, the 30-year FRM is a difficult instrument to fund and hedge, Lea stated. Furthermore, as policymakers continue to roll out various options for a new structure to the mortgage finance system, one of the main changes is the need for a healthy secondary market that uses government guarantees. As a result, various policymakers on Capitol Hill are aware of the needed government guarantees and have worked such a product into propped legislation — the Housing Finance Reform and Taxpayer Protection Act of 2013. Thus, it’s inevitable that a higher degree of private sector participation will lead to an increase in the cost of mortgages and as a result, many are hopeful the government will price accordingly, noted Ronald Rosenfeld of the Federal Housing Finance Board. Overall, access to affordable housing is critical for equal opportunities and while the 30-year, FRM was a tool kept in the government’s toolbox to provide homeownership; many market experts are open to the introduction of new mortgage products.
URL to original article: http://www.housingwire.com/articles/26138-barriers-remain-to-americans-seeking-homeownershp
For further information on Fresno Real Estate check: http://www.londonproperties.com
Monday, August 12, 2013
Affordability drops for Valley homebuyers in Q2
Source: The Business Journal
Rising home prices in the second quarter meant fewer homebuyers in the San Joaquin Valley were able to make the deal happen. According to new figures by the California Association of Realtors, the percentage of homebuyers who could afford a median-priced home in Fresno County dropped to 61 percent in the latest quarter compared to 64 percent in the previous quarter and 71 percent in the second quarter of 2012. On average, homebuyers in the county needed to make a minimum annual income of $33,050 to purchase a single-family home priced at $171,950 with monthly payments of $830 on a 30-year fixed-rate loan. The affordability index in Tulare County dropped from 70 percent in the first quarter and 73 percent a year ago to 66 percent in the second quarter of the year. That meant homebuyers needed an income of at least $29,360 to afford a home priced at $152,730 on monthly payments of $730. In Madera County, the amount of those who could afford to buy stood at 71 percent in the second quarter compared to 77 percent in the first quarter and 74 percent a year ago. That meant a median priced home of $150,910 was achievable with a minimum annual income of $29,010 on monthly payments of $730. The affordability index in Kings County remained steady at 70 percent, but marked a decline from 74 percent in the second quarter of last year. Homebuyers in the county needed a minimum income of $28,980 to afford a median priced home of $150,770 on payments of $720 per month. Housing affordability throughout the state dropped from 44 percent in the first quarter and 51 percent a year ago to 36 percent in the latest quarter. On average, California homebuyers needed to make at least $79,910 to afford a home priced at $415,770 on monthly payments of $2,000. For counties that submitted data, Madera County had the highest affordability index, while San Francisco County tied San Mateo County with the lowest index at 17 percent.
URL to original article: http://www.thebusinessjournal.com/news/real-estate/7239-affordability-drops-for-valley-homebuyers-in-q2
For further information on Fresno Real Estate check: http://www.londonproperties.com
Rising home prices in the second quarter meant fewer homebuyers in the San Joaquin Valley were able to make the deal happen. According to new figures by the California Association of Realtors, the percentage of homebuyers who could afford a median-priced home in Fresno County dropped to 61 percent in the latest quarter compared to 64 percent in the previous quarter and 71 percent in the second quarter of 2012. On average, homebuyers in the county needed to make a minimum annual income of $33,050 to purchase a single-family home priced at $171,950 with monthly payments of $830 on a 30-year fixed-rate loan. The affordability index in Tulare County dropped from 70 percent in the first quarter and 73 percent a year ago to 66 percent in the second quarter of the year. That meant homebuyers needed an income of at least $29,360 to afford a home priced at $152,730 on monthly payments of $730. In Madera County, the amount of those who could afford to buy stood at 71 percent in the second quarter compared to 77 percent in the first quarter and 74 percent a year ago. That meant a median priced home of $150,910 was achievable with a minimum annual income of $29,010 on monthly payments of $730. The affordability index in Kings County remained steady at 70 percent, but marked a decline from 74 percent in the second quarter of last year. Homebuyers in the county needed a minimum income of $28,980 to afford a median priced home of $150,770 on payments of $720 per month. Housing affordability throughout the state dropped from 44 percent in the first quarter and 51 percent a year ago to 36 percent in the latest quarter. On average, California homebuyers needed to make at least $79,910 to afford a home priced at $415,770 on monthly payments of $2,000. For counties that submitted data, Madera County had the highest affordability index, while San Francisco County tied San Mateo County with the lowest index at 17 percent.
URL to original article: http://www.thebusinessjournal.com/news/real-estate/7239-affordability-drops-for-valley-homebuyers-in-q2
For further information on Fresno Real Estate check: http://www.londonproperties.com
Investors place their bets on luxury homes
Source: Housingwire
Jan Brzeski stands in a sun-filled, beautifully refurbished living room high in the Hollywood Hills, looking out at a swimming pool and, miles (km) below, stunning views of Los Angeles. Brzeski is a private money lender running an investment firm in Los Angeles that provides loans to house flippers - investors who buy a home, refurbish it, and sell it at a profit. Many flippers turn to money lenders because they cannot get banks to provide such short-term, quick financing. Standing with Brzeski is Scott Ryan, the realtor who bought this four-bedroom, five-bathroom house in December 2012 for $1.5 million - with money lent by Brzeski - and has transformed it with another $600,000. This week the property will go on the market at $3.295 million. "People will come in here and fall in love," Ryan said, with a house flipper's standard issue optimism. "This is an emotional sale. If it takes a week to sell, I will be surprised. There are a lot of young, wealthy people here, and a lot of money out there." (Read more: Home builders ride the wave of US housing recovery) Eighteen months ago Brzeski and his firm, Arixa Capital Advisors, were lending investor money to flippers on very different properties: $250,000 single family homes in southern California's up-and-coming lower- to middle-class blue-collar neighborhoods. Most of the deals involved foreclosed homes that were totally refurbished, and then sold quickly. No more. Brzeski now focuses on developers working on high-end flips of mansions and townhouses in exclusive neighborhoods, such as the Hollywood Hills and Bel Air. And he is not alone. There has been a surge in high-end and luxury flipping nationwide. Between 2011 and today, flips of homes valued at $1 million or more have risen almost 40 percent across the United States, according to RealtyTrac, the housing data company. Between 2011 and 2012, high-end flipping soared 456 percent in Phoenix (150 properties from 27); 867 percent in Orlando (29 homes from 3); and to 73 properties from 10 in Las Vegas, according to RealtyTrac. To qualify as a flip for the figures, a home has to be bought and sold within six months. Brzeski says two main factors combined to send him upmarket in the projects he lends on. Newly flush Wall Street investors moved into the mid-market with so much money that they bought nearly every foreclosure in sight, mostly to rent. The Blackstone Group, for example, spent $5.5 billion on 32,000 homes across America, according to the firm. American Homes 4 Rent, the California-based real estate investment trust founded by self-storage billionaire Wayne Hughes, spent $3.3 billion, on more than 19,000 houses. "These Wall Street guys employed huge dollars," Brzeski said. "These firms came to the courthouse steps and bought everything in sight. So the low- to mid-market dried up." Brzeski said he had originally been wary of the high-end market, because of the much bigger sums involved and thus greater risk. But then in 2011 he financed the purchase of a house in West Hollywood for $1.425 million. Another $1.175 million was spent on a total refurbishment. "When the developer put it on the market, they had multiple, all-cash offers," he said. "There was a line out the door to buy it. It sold for $3.5 million. This was an incredibly profitable project. This really opened my eyes." (Read more: Obama to push for housing reform of mortgage giants) The house was bought by actress Sarah Gilbert, who became famous on the television sitcom "Roseanne." Daren Blomquist, RealtyTrac's vice president, said: "Flippers are getting more confident that the market is really recovering, and therefore are more willing to go high-end, even though it's more risky." Blomquist said with the stock market doing so well, there is a lot of investor cash out there, and a huge amount of wealth and pent-up demand at the high-end of the market. When a beautifully refurbished mansion hits the market, they are snapped up, often with all-cash offers, he said. Foreign investors are also spending billions on the U.S. property market. Last year, Chinese investors spent $12 billion on U.S. real estate, making the country the second-biggest foreign investor, just behind Canada, according to the National Association of Realtors. Blomquist also sounded a warning for anyone who thinks flipping is easy. Many who try, suffer catastrophic losses. "It's 10 times as risky doing high-end flips. Unfortunately what happens a lot of times, flippers have a property, then they can't find a buyer to purchase it." (Read more: Home Ownership is Still a Dream, If Not a Reality Right Now) Brzeski's business model is simple. Using a fund of investor money he lends 75 percent of a project's "hard costs" - that is money used for the purchase and refurbishment - and collects interest at an annual rate of approximately 10 percent. Usually the loan is repaid within six to 12 months. He does not share in the profit made by the flip. Brzeski loans between $1 million and $4 million on each project. Another factor, unique to California, helps him fund luxury flips, said Brzeski. Because of a 1978 voter initiative law knows as Proposition 13, the tax assessments of California houses have increased dramatically less than home values since the law was enacted, as long as the home has remained unsold. Now, owners who had been reluctant to part with their large homes since the early 1970s because of "Prop 13" are dying, or are finally ready to downsize. "Almost all our homes in these A and A-plus neighborhoods have something in common. You look at the appliances in the kitchen. If they are from the 1960s or 1970s, that's the house to flip," Brzeski said. (Read more: 'Buffett of Canada' says he's a big bull on the US) Across the country, close to Washington, D.C., Chris Haddon works for Hard Money Bankers. They provide money for investment deals on "fix and flip" projects in Washington, Maryland and Virginia. Haddon says he, too, has seen a surge in deals involving high-end properties. "A few years ago, you would look at a $2 million property and have no idea how long it would take to sell. The high-end market is always the last to rebound. But it's now rebounded and D.C. is hot." In Miami, Mark Black, a realtor, said people with cash have been moving into the high end of the market in the past year. "The market has gone through the roof. You see people buying properties one year ago and selling them at 20, 30 percent profit. Some of these are no more than paint jobs. The ones that are doing big rehabs are making huge profits." In Manhattan, Tim Desmond, a realtor with luxury realtors Stribling, said high-end flips in New York are not for the faint of heart, but the profits can be huge. He cited a 12,000-square-foot (1,115-square-meter) home on Manhattan's East 56th Street that was bought by an investment group for $10 million. It took two years to convert it into two, three-story, 6,000-square-foot (557-square-meter) condominiums. The first is now on the market with a $17 million price tag.
URL to original article: http://www.housingwire.com/articles/26096-investors-place-their-bets-on-luxury-homes
For further information on Fresno Real Estate check: http://www.londonproperties.com
Jan Brzeski stands in a sun-filled, beautifully refurbished living room high in the Hollywood Hills, looking out at a swimming pool and, miles (km) below, stunning views of Los Angeles. Brzeski is a private money lender running an investment firm in Los Angeles that provides loans to house flippers - investors who buy a home, refurbish it, and sell it at a profit. Many flippers turn to money lenders because they cannot get banks to provide such short-term, quick financing. Standing with Brzeski is Scott Ryan, the realtor who bought this four-bedroom, five-bathroom house in December 2012 for $1.5 million - with money lent by Brzeski - and has transformed it with another $600,000. This week the property will go on the market at $3.295 million. "People will come in here and fall in love," Ryan said, with a house flipper's standard issue optimism. "This is an emotional sale. If it takes a week to sell, I will be surprised. There are a lot of young, wealthy people here, and a lot of money out there." (Read more: Home builders ride the wave of US housing recovery) Eighteen months ago Brzeski and his firm, Arixa Capital Advisors, were lending investor money to flippers on very different properties: $250,000 single family homes in southern California's up-and-coming lower- to middle-class blue-collar neighborhoods. Most of the deals involved foreclosed homes that were totally refurbished, and then sold quickly. No more. Brzeski now focuses on developers working on high-end flips of mansions and townhouses in exclusive neighborhoods, such as the Hollywood Hills and Bel Air. And he is not alone. There has been a surge in high-end and luxury flipping nationwide. Between 2011 and today, flips of homes valued at $1 million or more have risen almost 40 percent across the United States, according to RealtyTrac, the housing data company. Between 2011 and 2012, high-end flipping soared 456 percent in Phoenix (150 properties from 27); 867 percent in Orlando (29 homes from 3); and to 73 properties from 10 in Las Vegas, according to RealtyTrac. To qualify as a flip for the figures, a home has to be bought and sold within six months. Brzeski says two main factors combined to send him upmarket in the projects he lends on. Newly flush Wall Street investors moved into the mid-market with so much money that they bought nearly every foreclosure in sight, mostly to rent. The Blackstone Group, for example, spent $5.5 billion on 32,000 homes across America, according to the firm. American Homes 4 Rent, the California-based real estate investment trust founded by self-storage billionaire Wayne Hughes, spent $3.3 billion, on more than 19,000 houses. "These Wall Street guys employed huge dollars," Brzeski said. "These firms came to the courthouse steps and bought everything in sight. So the low- to mid-market dried up." Brzeski said he had originally been wary of the high-end market, because of the much bigger sums involved and thus greater risk. But then in 2011 he financed the purchase of a house in West Hollywood for $1.425 million. Another $1.175 million was spent on a total refurbishment. "When the developer put it on the market, they had multiple, all-cash offers," he said. "There was a line out the door to buy it. It sold for $3.5 million. This was an incredibly profitable project. This really opened my eyes." (Read more: Obama to push for housing reform of mortgage giants) The house was bought by actress Sarah Gilbert, who became famous on the television sitcom "Roseanne." Daren Blomquist, RealtyTrac's vice president, said: "Flippers are getting more confident that the market is really recovering, and therefore are more willing to go high-end, even though it's more risky." Blomquist said with the stock market doing so well, there is a lot of investor cash out there, and a huge amount of wealth and pent-up demand at the high-end of the market. When a beautifully refurbished mansion hits the market, they are snapped up, often with all-cash offers, he said. Foreign investors are also spending billions on the U.S. property market. Last year, Chinese investors spent $12 billion on U.S. real estate, making the country the second-biggest foreign investor, just behind Canada, according to the National Association of Realtors. Blomquist also sounded a warning for anyone who thinks flipping is easy. Many who try, suffer catastrophic losses. "It's 10 times as risky doing high-end flips. Unfortunately what happens a lot of times, flippers have a property, then they can't find a buyer to purchase it." (Read more: Home Ownership is Still a Dream, If Not a Reality Right Now) Brzeski's business model is simple. Using a fund of investor money he lends 75 percent of a project's "hard costs" - that is money used for the purchase and refurbishment - and collects interest at an annual rate of approximately 10 percent. Usually the loan is repaid within six to 12 months. He does not share in the profit made by the flip. Brzeski loans between $1 million and $4 million on each project. Another factor, unique to California, helps him fund luxury flips, said Brzeski. Because of a 1978 voter initiative law knows as Proposition 13, the tax assessments of California houses have increased dramatically less than home values since the law was enacted, as long as the home has remained unsold. Now, owners who had been reluctant to part with their large homes since the early 1970s because of "Prop 13" are dying, or are finally ready to downsize. "Almost all our homes in these A and A-plus neighborhoods have something in common. You look at the appliances in the kitchen. If they are from the 1960s or 1970s, that's the house to flip," Brzeski said. (Read more: 'Buffett of Canada' says he's a big bull on the US) Across the country, close to Washington, D.C., Chris Haddon works for Hard Money Bankers. They provide money for investment deals on "fix and flip" projects in Washington, Maryland and Virginia. Haddon says he, too, has seen a surge in deals involving high-end properties. "A few years ago, you would look at a $2 million property and have no idea how long it would take to sell. The high-end market is always the last to rebound. But it's now rebounded and D.C. is hot." In Miami, Mark Black, a realtor, said people with cash have been moving into the high end of the market in the past year. "The market has gone through the roof. You see people buying properties one year ago and selling them at 20, 30 percent profit. Some of these are no more than paint jobs. The ones that are doing big rehabs are making huge profits." In Manhattan, Tim Desmond, a realtor with luxury realtors Stribling, said high-end flips in New York are not for the faint of heart, but the profits can be huge. He cited a 12,000-square-foot (1,115-square-meter) home on Manhattan's East 56th Street that was bought by an investment group for $10 million. It took two years to convert it into two, three-story, 6,000-square-foot (557-square-meter) condominiums. The first is now on the market with a $17 million price tag.
URL to original article: http://www.housingwire.com/articles/26096-investors-place-their-bets-on-luxury-homes
For further information on Fresno Real Estate check: http://www.londonproperties.com
Friday, August 9, 2013
Fresno home prices slowing pace
Source: The Business Journal
While still increasing, home prices aren't growing as fast as they used to in Fresno, according to real estate search website Trulia. Prices in the Fresno metropolitan area rose 19 percent in July over the year before. However, the momentum is likely on the downturn with Fresno's asking prices slowing significantly from quarter to quarter. In the second quarter of the year, asking prices in the area increased 5.2 percent compared to 7.4 percent in the first quarter, a slowing of 2.2 percent. That slowdown rate is behind only eight other metros in the nation, including San Jose at 2.4 percent, Sacramento and Portland, Ore. at 3.3 percent, San Francisco 3.5 percent and Las Vegas, Nev. at 5.2 percent. Nationwide, asking home prices decreased 0.3 percent in July, the first month-over-month decline since November 2012. However, asking prices were up 3.3 percent quarter-over-quarter in July, down from a peak of 4.2 percent in April. "The asking home price slowdown in July could be the start of the return to normal price gains," said Jed Kolko, Trulia's chief economist, in a release. "The blazing fast price increases we've seen in recent months could not last, especially with rising mortgage rates, expanding inventory and declining investor interest." Trulia data showed average listing prices stood at around $329,825 in Fresno County in July, with Trulia listing 4,723 homes currently for sale. Prices averaged $268,509 in Tulare County with 3,235 homes for sale, $355,318 in Madera County with 1,523 homes and $248,257 in Kings County with 677 homes. Sales and rental prices for California metros can be searched in more detail at trulia.com under the "Local Info" tab.
URL to original article: http://thebusinessjournal.com/news/real-estate/7199-fresno-home-prices-slowing-pace
For further information on Fresno Real Estate check: http://www.londonproperties.com
While still increasing, home prices aren't growing as fast as they used to in Fresno, according to real estate search website Trulia. Prices in the Fresno metropolitan area rose 19 percent in July over the year before. However, the momentum is likely on the downturn with Fresno's asking prices slowing significantly from quarter to quarter. In the second quarter of the year, asking prices in the area increased 5.2 percent compared to 7.4 percent in the first quarter, a slowing of 2.2 percent. That slowdown rate is behind only eight other metros in the nation, including San Jose at 2.4 percent, Sacramento and Portland, Ore. at 3.3 percent, San Francisco 3.5 percent and Las Vegas, Nev. at 5.2 percent. Nationwide, asking home prices decreased 0.3 percent in July, the first month-over-month decline since November 2012. However, asking prices were up 3.3 percent quarter-over-quarter in July, down from a peak of 4.2 percent in April. "The asking home price slowdown in July could be the start of the return to normal price gains," said Jed Kolko, Trulia's chief economist, in a release. "The blazing fast price increases we've seen in recent months could not last, especially with rising mortgage rates, expanding inventory and declining investor interest." Trulia data showed average listing prices stood at around $329,825 in Fresno County in July, with Trulia listing 4,723 homes currently for sale. Prices averaged $268,509 in Tulare County with 3,235 homes for sale, $355,318 in Madera County with 1,523 homes and $248,257 in Kings County with 677 homes. Sales and rental prices for California metros can be searched in more detail at trulia.com under the "Local Info" tab.
URL to original article: http://thebusinessjournal.com/news/real-estate/7199-fresno-home-prices-slowing-pace
For further information on Fresno Real Estate check: http://www.londonproperties.com
Wednesday, August 7, 2013
President Obama reveals housing plan
Source: The Housingwire
In a highly anticipated speech on Tuesday, President Barack Obama laid out his plan to continue moving the nation’s housing forward. The president, who has been visiting towns throughout the country over the last few weeks, has focused his efforts on creating a better life for the middle class as of late. The White House even published this chart to serve as a visual guide to the new plan. “Everyone who works hard has a chance to succeed,” said President Obama, who acknowledged the challenges that Arizona in particular has faced the past nearly five years, as the nation fought its way back from a devastating recession. “We’ve cleared away the rubble of the financial crisis,” said Obama. However, the president noted, as Washington heads toward another budget debate, the stakes could not be higher. “We’re not yet where we need to be.” The president stated his highest priority is to allow Americans to “make it” when they try. “Right now, we’re not delivering as much as we should on these promises,” he said. Last Tuesday, the president went to Tennessee to discuss the first cornerstone of middle class security: a good job. Today, he addressed the second component: the chance to own a home. “A home is the ultimate evidence that here in America, hard work pays off,” the president said to a crowd gathered at Desert Vista High School in Phoenix’s Ahwatukee Foothills section. Over time, responsibility gave way to recklessness — whether it be reckless lenders giving loans to people they knew couldn’t afford a home or reckless buyers who took out a loan, despite their inability to make payments. It was this recklessness that created the bubble, especially in places like Arizona, the president noted. By the time Obama took office, home values had fallen almost 20% from the year before. “People here in Phoenix, they saw that devastation,” he said. “The truth is, it’s been a long, slow process,” he added. Since taking office, the Obama Administration has helped million of homeowners stay in their homes, but our housing market is only beginning to heal, the president noted. “We’ve got to turn the page on this bubble and bust mentality that helped create this mess in the first place,” said Obama, who reiterated his plan is to help responsible, middle-class homeowners who still need relief, yet are willing to make payments and realize that owning a home requires responsibility. And so, the president unveiled his plan to offer more middle-class Americans a better life. First, homeowners with non-GSE loans should be allowed to refinance their mortgage at today’s rates, which could save them on average $3,000 a year. Next, the president plans to take executive action to cut red tape so responsible families can get a mortgage. Thirdly, Obama stated that fixing the nation’s broken immigration system will help increase home values. “When more people buy homes and play by the rules, home values go up for everybody,” he said. Fourth, communities that were hit hardest by foreclosures during the housing crisis need to be rebuilt, including Arizona, the president said. Finally, Obama noted creating and preserving affordable rental housing for those who choose to not own a home by passing a bipartisan Senate proposal is crucial to creating a better life for many middle-class Americans. “As home prices rise, we can’t just re-inflate another housing bubble,” Obama said. “What we want to do is something stable and steady,” he added. Moving forward, the president believes it is imperative that Fannie Mae and Freddie Mac start to wind down. “The good news is, right now there’s a bipartisan group of senators working to end Fannie and Freddie as we knot it,” said Obama, who noted he supports a limited government role. The president added the core principles for durable, fair housing finance reform: put private capital at the center of the housing finance system; terminate Fannie and Freddie’s failed business model so taxpayers are never again on the hook for bad loans and bailouts; guarantee widespread access to safe and responsible financing like a 30-year fixed rates mortgage; and support affordability and access for renters and homeownership for first-time buyers, partially by strengthening the Federal Housing Administration so it can give today’s families the same chance as families in the past. Put all these principals together, that’s going to protect our entire economy and improve the housing market, not just here in Phoenix, but across the state and across the country, the president said. “No program or policy is going to solve all the problems in a multi-trillion dollar housing market,” Obama said. By restoring home values, we will also restore common values, the president concluded.
URL to original article: http://www.housingwire.com/articles/25990-president-obama-reveals-housing-plan
For further information on Fresno Real Estate check: http://www.londonproperties.com
In a highly anticipated speech on Tuesday, President Barack Obama laid out his plan to continue moving the nation’s housing forward. The president, who has been visiting towns throughout the country over the last few weeks, has focused his efforts on creating a better life for the middle class as of late. The White House even published this chart to serve as a visual guide to the new plan. “Everyone who works hard has a chance to succeed,” said President Obama, who acknowledged the challenges that Arizona in particular has faced the past nearly five years, as the nation fought its way back from a devastating recession. “We’ve cleared away the rubble of the financial crisis,” said Obama. However, the president noted, as Washington heads toward another budget debate, the stakes could not be higher. “We’re not yet where we need to be.” The president stated his highest priority is to allow Americans to “make it” when they try. “Right now, we’re not delivering as much as we should on these promises,” he said. Last Tuesday, the president went to Tennessee to discuss the first cornerstone of middle class security: a good job. Today, he addressed the second component: the chance to own a home. “A home is the ultimate evidence that here in America, hard work pays off,” the president said to a crowd gathered at Desert Vista High School in Phoenix’s Ahwatukee Foothills section. Over time, responsibility gave way to recklessness — whether it be reckless lenders giving loans to people they knew couldn’t afford a home or reckless buyers who took out a loan, despite their inability to make payments. It was this recklessness that created the bubble, especially in places like Arizona, the president noted. By the time Obama took office, home values had fallen almost 20% from the year before. “People here in Phoenix, they saw that devastation,” he said. “The truth is, it’s been a long, slow process,” he added. Since taking office, the Obama Administration has helped million of homeowners stay in their homes, but our housing market is only beginning to heal, the president noted. “We’ve got to turn the page on this bubble and bust mentality that helped create this mess in the first place,” said Obama, who reiterated his plan is to help responsible, middle-class homeowners who still need relief, yet are willing to make payments and realize that owning a home requires responsibility. And so, the president unveiled his plan to offer more middle-class Americans a better life. First, homeowners with non-GSE loans should be allowed to refinance their mortgage at today’s rates, which could save them on average $3,000 a year. Next, the president plans to take executive action to cut red tape so responsible families can get a mortgage. Thirdly, Obama stated that fixing the nation’s broken immigration system will help increase home values. “When more people buy homes and play by the rules, home values go up for everybody,” he said. Fourth, communities that were hit hardest by foreclosures during the housing crisis need to be rebuilt, including Arizona, the president said. Finally, Obama noted creating and preserving affordable rental housing for those who choose to not own a home by passing a bipartisan Senate proposal is crucial to creating a better life for many middle-class Americans. “As home prices rise, we can’t just re-inflate another housing bubble,” Obama said. “What we want to do is something stable and steady,” he added. Moving forward, the president believes it is imperative that Fannie Mae and Freddie Mac start to wind down. “The good news is, right now there’s a bipartisan group of senators working to end Fannie and Freddie as we knot it,” said Obama, who noted he supports a limited government role. The president added the core principles for durable, fair housing finance reform: put private capital at the center of the housing finance system; terminate Fannie and Freddie’s failed business model so taxpayers are never again on the hook for bad loans and bailouts; guarantee widespread access to safe and responsible financing like a 30-year fixed rates mortgage; and support affordability and access for renters and homeownership for first-time buyers, partially by strengthening the Federal Housing Administration so it can give today’s families the same chance as families in the past. Put all these principals together, that’s going to protect our entire economy and improve the housing market, not just here in Phoenix, but across the state and across the country, the president said. “No program or policy is going to solve all the problems in a multi-trillion dollar housing market,” Obama said. By restoring home values, we will also restore common values, the president concluded.
URL to original article: http://www.housingwire.com/articles/25990-president-obama-reveals-housing-plan
For further information on Fresno Real Estate check: http://www.londonproperties.com
Tuesday, August 6, 2013
Madera County crop value hits record $1.73B
Source: The Business Journal
Madera County’s 2012 gross ag value grew by 11 percent to hit a record $1.73 billion thanks to a jump in almond and grape production. It compares to a gross value of $1.56 billion in 2011. “This is good news for a recovering economy,” said Stevie McNeill, Madera County agricultural commissioner, speaking to the Madera County Board of Supervisors on Tuesday. She said a $2 billion crop value is likely for 2013. The gross value of almonds, nuts and hulls reached $487.3 million, followed by grapes at $360.7 million, milk at $288.7 million and cattle and calves at $51.4 million. Grape value grew by 21 percent in 2012. Almonds retained the top crop rank for the third year in a row. The 2011 gross value for almonds, nuts and hulls came in at $414.4 million. Fruit and nut gross value grew by 23.10 percent in 2012. McNeill said 30,000 more acres of almonds are in the ground to add to 92,000 acres that are producing. She also forecasts a sizeable increase in wine grape plantings. Milk, which was the second-top grossing crop in the 2011 crop report, fell to $288.7 million because of problems with prices, McNeill said. Milk value reached $325.9 million in 2011. The decrease also reflected the fact that some dairies closed their doors during the year. McNeill said wine grape value grew because Madera County is becoming a wine destination. “We also saw improved prices in raisin production, she said. She added that the county saw a decrease in production of stone fruit and vegetables. Also, field crops were down some because of the drought, McNeill said. The market for peaches was fairly good, McNeill added. The cattle market was also good, she said. Gross value of livestock and poultry grew by 13.84 percent. The county reported a gross value of $51.4 million for cattle and calves in 2012 compared to $45.4 million in 2011. Nursery growth remained slow, but fruit and nut tree nurseries held their own. Cherries had a good year, especially for growers who hit the cherry export market early. Madera County is the top fig-producing county in the state and although the amount of crop has shrunk, prices were up in 2012. Olives also had a profitable year, McNeill said. “There is an emerging market for olive oil, she said. Citrus acreage stayed about the same, but some navel orange orchards were replaced with mandarin trees.
URL to original article: http://www.thebusinessjournal.com/news/agriculture/7180-madera-county-crop-value-hits-record-1-73b
For further information on Fresno Real Estate check: http://www.londonproperties.com
Madera County’s 2012 gross ag value grew by 11 percent to hit a record $1.73 billion thanks to a jump in almond and grape production. It compares to a gross value of $1.56 billion in 2011. “This is good news for a recovering economy,” said Stevie McNeill, Madera County agricultural commissioner, speaking to the Madera County Board of Supervisors on Tuesday. She said a $2 billion crop value is likely for 2013. The gross value of almonds, nuts and hulls reached $487.3 million, followed by grapes at $360.7 million, milk at $288.7 million and cattle and calves at $51.4 million. Grape value grew by 21 percent in 2012. Almonds retained the top crop rank for the third year in a row. The 2011 gross value for almonds, nuts and hulls came in at $414.4 million. Fruit and nut gross value grew by 23.10 percent in 2012. McNeill said 30,000 more acres of almonds are in the ground to add to 92,000 acres that are producing. She also forecasts a sizeable increase in wine grape plantings. Milk, which was the second-top grossing crop in the 2011 crop report, fell to $288.7 million because of problems with prices, McNeill said. Milk value reached $325.9 million in 2011. The decrease also reflected the fact that some dairies closed their doors during the year. McNeill said wine grape value grew because Madera County is becoming a wine destination. “We also saw improved prices in raisin production, she said. She added that the county saw a decrease in production of stone fruit and vegetables. Also, field crops were down some because of the drought, McNeill said. The market for peaches was fairly good, McNeill added. The cattle market was also good, she said. Gross value of livestock and poultry grew by 13.84 percent. The county reported a gross value of $51.4 million for cattle and calves in 2012 compared to $45.4 million in 2011. Nursery growth remained slow, but fruit and nut tree nurseries held their own. Cherries had a good year, especially for growers who hit the cherry export market early. Madera County is the top fig-producing county in the state and although the amount of crop has shrunk, prices were up in 2012. Olives also had a profitable year, McNeill said. “There is an emerging market for olive oil, she said. Citrus acreage stayed about the same, but some navel orange orchards were replaced with mandarin trees.
URL to original article: http://www.thebusinessjournal.com/news/agriculture/7180-madera-county-crop-value-hits-record-1-73b
For further information on Fresno Real Estate check: http://www.londonproperties.com
June home prices up from last year
Source: The Business Journal
Area home prices continued to increase in June, according to a just-released June home price index report by CoreLogic®, an Irvine-based residential property information, analytics and services provider. In Fresno, home prices, including distressed sales, increased by 13.5 percent in June compared to June 2012. On a month-over-month basis, home prices, including distressed sales, increased by 1.3 percent in June compared to May. Excluding distressed sales, year-over-year prices in Fresno increased by 12.4 percent in June compared to June 2012. On a month-over-month basis, excluding distressed sales, the CoreLogic HPI indicates home prices increased by 1.3 percent in June compared to one month earlier. In Visalia-Porterville, home prices, including distressed sales, increased by 16.8 percent in June compared to June 2012. On a month-over-month basis, home prices, including distressed sales, increased by 2.3 percent in June compared to May. Excluding distressed sales, year-over-year prices in Visalia-Porterville increased by 14.9 percent in June compared to June 2012. On a month-over-month basis, excluding distressed sales, the index indicates home prices decreased by 0.4 percent in June compared to May. In Hanford-Corcoran, home prices, including distressed sales, increased by 15.9 percent in June compared to June 2012. On a month-over-month basis, home prices, including distressed sales, increased by 2.1 percent in June 2013 compared to May. Excluding distressed sales, year-over-year prices in Hanford-Corcoran increased by 10.2 percent in June compared to June 2012. On a month-over-month basis, excluding distressed sales, the index shows home prices increased by 1.5 percent in June compared to May. In Madera-Chowchilla, home prices, including distressed sales, increased by 22.8 percent in June compared to June 2012. On a month-over-month basis, home prices, including distressed sales, increased by 0.8 percent in June compared to May. Excluding distressed sales, year-over-year prices in Madera-Chowchilla increased by 26.6 percent in June compared to June 2012. On a month-over-month basis, excluding distressed sales, the index indicates home prices increased by 4.2 percent in June compared to May.
URL to original article: http://thebusinessjournal.com/news/real-estate/7172-june-home-prices-up-from-last-year
For further information on Fresno Real Estate check: http://www.londonproperties.com
Area home prices continued to increase in June, according to a just-released June home price index report by CoreLogic®, an Irvine-based residential property information, analytics and services provider. In Fresno, home prices, including distressed sales, increased by 13.5 percent in June compared to June 2012. On a month-over-month basis, home prices, including distressed sales, increased by 1.3 percent in June compared to May. Excluding distressed sales, year-over-year prices in Fresno increased by 12.4 percent in June compared to June 2012. On a month-over-month basis, excluding distressed sales, the CoreLogic HPI indicates home prices increased by 1.3 percent in June compared to one month earlier. In Visalia-Porterville, home prices, including distressed sales, increased by 16.8 percent in June compared to June 2012. On a month-over-month basis, home prices, including distressed sales, increased by 2.3 percent in June compared to May. Excluding distressed sales, year-over-year prices in Visalia-Porterville increased by 14.9 percent in June compared to June 2012. On a month-over-month basis, excluding distressed sales, the index indicates home prices decreased by 0.4 percent in June compared to May. In Hanford-Corcoran, home prices, including distressed sales, increased by 15.9 percent in June compared to June 2012. On a month-over-month basis, home prices, including distressed sales, increased by 2.1 percent in June 2013 compared to May. Excluding distressed sales, year-over-year prices in Hanford-Corcoran increased by 10.2 percent in June compared to June 2012. On a month-over-month basis, excluding distressed sales, the index shows home prices increased by 1.5 percent in June compared to May. In Madera-Chowchilla, home prices, including distressed sales, increased by 22.8 percent in June compared to June 2012. On a month-over-month basis, home prices, including distressed sales, increased by 0.8 percent in June compared to May. Excluding distressed sales, year-over-year prices in Madera-Chowchilla increased by 26.6 percent in June compared to June 2012. On a month-over-month basis, excluding distressed sales, the index indicates home prices increased by 4.2 percent in June compared to May.
URL to original article: http://thebusinessjournal.com/news/real-estate/7172-june-home-prices-up-from-last-year
For further information on Fresno Real Estate check: http://www.londonproperties.com
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