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Super Bowl Real Estate Prices

Real Estate Home Median Prices Sometimes Correlate With Super Bowl Appearances

Super Bowl Real Estate Prices

The big game is almost upon us and the excitement and buzz around the Super Bowl is all around. While many new Super Bowl advertisements and even some controversy surrounding them is typically the hot item, we found one story at RealEstate.com that had us pretty intrigued. It seems that a peculiar trend in the data of median home prices shows that higher median home values more often than not lead to a Super Bowl team.

Lucky for you, there is an infographic to help you sort through all the information. Essentially what the data says when all Super Bowls were analyzed along with median home prices it started to reveal the high priced home theory. If you look at teams that have went to the Super Bowl the most, 7 of those cities are actually cities that have high home prices. The home median prices were compared to the national median home price.

So you’re probably wondering, what about the 10 teams that have went to the Super Bowl the least? Well, that is where the data keeps the anomaly going. Of the 10 NFL Teams that have went to the Super Bowl the least, most of them have low median home prices when compared to the nation median home price.

Don’t worry, it doesn’t all work out like perfect Real Estate magic with the data always working out to fit the theory. Some exceptions to the rule are NFL teams like Green Bay Packers, Dallas Cowboys and Pittsburgh Steelers which are in the Super Bowl a lot. With as much as these NFL teams make it to the Super Bowl their median home values aren’t too hot.

There’s more teams in the National Football League that don’t fit into the high home value and high Super Bowl appearance correlation. Unfortunately, one of the teams is a team I root for a lot, the San Diego Chargers. The Chargers have one of the highest home median prices and they’ve only been graced with a Super Bowl appearance once. I know, I’m upset about it too. The other team that has high home values but has only been to the Super Bowl once is the Seattle Seahawks.

So as excited as we got, the fun analysis of real estate values and Super Bowl teams coinciding together has fell apart. There does still seem to be some truth to the whole thing and you can’t beat telling someone about this possibility at the water cooler! You can view the Super Bowl Appearances vs. Real Estate Prices infographic below:

Do cities with higher home prices make more Super Bowl appearances

Super Bowl Appearances vs. Real Estate Prices

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Sales of Preowned Houses Drop, Prices Go Up Due to Lack of Inventory

Lack of Housing Inventory

Sales of previously owned homes dropped in December from November, but the national median home prices rose to it’s highest best price in seven years.

With all that said, 4.65 million homes were sold for all of 2012, up from 9.2% in 2011, the most in five years and a sign that the housing market is slowly taking steps toward recovery.

“This isn’t worrisome at all,” said Stuart Hoffman, chief economist at PNC Financial Services Group in Pittsburgh, who projected a drop to a 4.95 million annual rate. “For the first time in a while, it looks like it’s a sellers’ market as much as it’s a buyers’ market. I suspect prices and sales will go up again in 2013.”

“We remain convinced that the housing recovery is well under way and should continue through 2013,” said Dan Greenhaus, chief global strategist at BTIG, an institutional brokerage.

Meanwhile, only 1.82 million homes were listed for sale in December, according to the National Association of Realtors. That is a 22 percent drop from a year ago and the lowest supply since May of 2005.

“The greatest concern in the market is the inventory situation,” said Lawrence Yun, chief economist for the NAR. “Even if we see an increase in the Spring and Summer, if home sales hold at the current level or even a 5 to 6-month supply, price increases are guaranteed. We don’t want to see rapid appreciation in prices faster than income.”

First-time home buyers, who are the crucial to the housing recovery, made up only 30 percent of sales in December. Banks have started to make tighter credit standards and also requiring larger down payments since the housing bust, six years ago. That means the buyers that are “would-be buyers” aren’t able to qualify for even the lowest mortgage rates.

The rate on the 30-year fixed mortgage averaged 3.66 percent in 2012, the lowest annual average in 65 years, according to Freddie Mac.

“Record low mortgage interest rates clearly are helping many home buyers, but tight inventory and restrictive mortgage underwriting standards are limiting sales,” the Realtors group’s chief economist, Lawrence Yun, said in a news release.

Sales for expensive houses priced at $1 million or more rose 62 percent in 2012. While the sales of homes below $100,000 fell 17 percent.

The median price of an existing home rose to $180,800 in December 2012, up 11.5 percent from $162,200 in December 2011. It was the biggest year-over-year gain since November 2005.

“The only concern going into 2013 is the inventory situation,” Lawrence Yun, NAR chief economist, said in a news conference as the figures were released. “Price increases are almost guaranteed going into 2013,” Yun said, adding that the group’s projection of a 4 percent to 5 percent increase this year may be exceeded.

How to play the 2013 housing market

2013 could bring on more home price appreciation and changes in the popular mortgage interest tax deduction.

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Death Spiral Map

Death Spiral States: Forbes Says 11 States are in a Downward Spiral with More Takers than Makers

Eleven states made it on the list of Forbes Death Spiral. What is does death spiral mean? It means that the state can look forward to a rising tax burden, deteriorating state finances and an exodus of employers.

Those eleven death spiral states are California, New York, Illinois, Ohio, Kentucky, South Carolina, Alabama, Mississippi, New Mexico, Maine and Hawaii.

What’s driving the Death Spiral in 11 states?

“There are a lot of economic factors that are built into the death spiral,” says William Baldwin of Forbes. “The essential one, is whether the state has more takers than makers. A taker is someone who draws money from the government, as an employee, pensioner or welfare recipient. A maker is someone gainfully employed in the private sector. Let us give those takers the benefit of our sympathy and assume that every single one of them is a deserving soul. This person is either genuinely needy or a dedicated public servant or the recipient of a well-earned pension.”

The states and their taker/maker ratio, with the worst of the “death spiral” states was New Mexico, with 1.53 takers for every 1 maker.

Mississippi 1.49, California 1.39, Alabama 1.10, Maine 1.07, New York 1.07, South Carolina 1.06, Kentucky 1.05, Illinois 1.03, Hawaii 1.02, and Ohio 1.00.

If you live in one of these death spiral states, Forbes says to rent instead of buy a house because property taxes will inevitably rise. William Baldwin of Forbes also says to sell municipal bonds you have in those states because they’re more likely to default and restructure those bonds so that they pay back less.

The second factor that goes into whether or not a state is in a death spiral is a “scorecard of state credit-worthiness done by Conning & Co., a money manager known for its measures of risk in insurance company portfolios,” says Baldwin. “Conning’s analysis focuses more on dollars than body counts. Its formula downgrades states for large debts, an uncompetitive business climate, weak home prices and bad trends in employment.”

Speaker of the South Carolina House Bobby Harrell, R-Charleston, says the article from Forbes is wrong, especially in calling members of the military, public employees and retirees “takers”.

“We have military installations all over South Carolina. Those folks are government employees, but they are certainly the kind of government employees that we want, because we care passionately about the military in South Carolina,” Harrell says. “We have retirees moving here from all over the country, so many that we’ve had to add a seventh Congressional district. We have, according to a tax group who studied this in Washington not too long ago, we have the lowest taxes in the country.”

Do You Live In A Death Spiral State?

Death Spiral States

New Mexico is at the bottom of yet another list, and this one has a grim-sounding name. Forbes Magazine calls us a “death spiral” state.
Forbes lists our state as one of eleven states whose economies are at high risk of going into a tailspin – a death spiral.

Forbes Releases List Of 11 “Death Spiral” States

A writer at Forbes Magazine has identified a phenomenon called the “death spiral states.” The category includes 11 states where private sector workers are outnumbered by people who are dependent on the government. That number would include state workers, and people who are receiving welfare or pension.

What’s Driving “Death Spiral” in 11 States?


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New Home Start Four Year High

New Home Starts Reach Four Year High in October

New Home Start Four Year High

New construction in housing hit the strongest for two months starting in October since four years ago. The Commerce Department said on Tuesday housing starts increased 3.6 percent to a seasonally adjusted annual rate of 894,000 units, the highest it’s been since July 2008.

The biggest increase was from multi-family construction, which was up 11.9 percent. Single-family construction went down only 0.2 percent compared to September but was back up 35.3 percent from October 2011. Despite Hurricane Sandy hitting the east coast during this survey period, outcome was still good and the drive for the housing market is starting to boom.

“Single-family housing starts and permits were above expectations for October, suggesting more residential investment in the fourth quarter,” Macroeconomic Advisers analysts wrote in a research note.

The rise in starts was mostly apartment buildings, which were up by 10 per cent, while new houses held steady. Foreclosures may have pushed many people into renting rather than owning a home. This is leading to a surge in apartment rental. Higher rents are making it especially profitable to build new apartments.

David Crowe, National Association of Home Builders chief economist, said in a statement, “Today’s report bears out similar changes in other economic indicators that housing continues to recover at a slow but steady place, and is right in line with our expectations of modest month-to-month growth. However, we still have a long way to go to get back to normal production as inaccurate appraisals, tight lending conditions for home buyers and policy uncertainties continue to impede the recovery.”

“The foundations for housing are getting better. Prices have stabilized, and people are feeling a bit more confident,” said Kevin Cummins, an economist at UBS Securities LLC in Stamford, Connecticut.

With all the reports of recovery numbers, this could mean the the US and world economy could start to build in 2013. From the report, it showed confidence among builders that has reached its highest level since the last days of the housing boom in 2006.

Eric Green, chief economist at TD Securities in New York said, “The broad improvement in home prices, home equity, starts, and inventory clearing are key developments that position the economy for stronger growth next year, and beyond.”

Housing Starts Highest in Four Years

New economic data today as October housing starts hit their highest rate in more than four years. This is very good news for the housing market, a segment of the economy that has continued to struggle since the recession. Reports indicate that for the first time since 2005, homebuilding is expected to add to gross domestic product.

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Peter Chadwick in court

Quee Chadwick Killed By Real Estate Investor Peter Chadwick?

Peter Chadwick in court

It isn’t confirmed without a shadow of a doubt that Peter Chadwick was the killer of Quee Chadwick but police have confirmed Quee Chadwick is dead. The Newport Beach Police Department was quoted telling CBS Los Angeles, “We responded out to the home and found evidence of a possible struggle or foul play. The investigation has revealed that Quee Chadwick is definitely a victim of homicide and although her body has not been located, we are currently searching the areas we believe Mr. Chadwick may have traveled.”

Prosecuters on the case against the Real Estate investor seemed to be pretty certain there was a murder. The Daily Pilot had interviewed one of the Chadwick’s neighbors who said that Quee Chadwick could be heard screaming. The screaming coming from the Chadwick’s house came around 6:30am or 7am Monday or Tuesday. Regardless the neighbor, Yulianna Nikulina said, “Peter [was] always nice, nothing wrong, nothing special. I can only tell you good things about this couple.”

The drama started to unfold when another neighbor noticed the Chadwick’s kids were waiting for a long time at the bus stop. The neighbor that saw the kids waiting called police and alerted them. It was at this point that police went to the multi-million dollar house and noticed there had been a struggle and possible signs of a murder scene.

When Peter Chadwick was attempted to be located he was nowhere to be found. Quee Chadwick was also missing at the scene and anywhere else police searched. By Thursday in the morning police in San Diego got a break in the case when Peter Chadwick called them for a reason that police will not reveal. Mr. Chadwick was soon located on a highway that wasn’t far from the Tijuana border.

Today Peter Chadwick faced a judge and pleaded not guilty. Mr. Chadwick was on a $1.5 million dollar bond and still remains in jail. It has been reported that Mr. Chadwick is charged with a felony count of murder for financial gain. The details of the case will most likely soon unfold as Mr. Chadwick faces a trial.

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Foreclosure Investments in US Foreign Buyers

Foreclosure Investing Growing In US From Foreign Markets

Foreclosure Investments in US Foreign Buyers

While there is certainly interest and demand domestically in America for foreclosure properties on the market, it seems interest is only building across the ocean. We caught wind of a press release that seems to tout the amazing investment opportunities in the US Real Estate market and the possible returns that are sitting there ripe for the taking.

Used as one of the pieces of advice in the press release was some quotes from Warren Buffet. Mr. Buffet was recently interviewed on CNBC’s Squawk Box and mentioned his feelings on the housing market and how he wouldn’t mind to invest on a large scale effort.

Mr. Buffet was quoted as saying, “If I had a way of buying a couple of hundred thousand single family homes and had a way to manage them…..i would load up on them.” It was also pointed out that with Warren Buffet saying that he had no self bias at the time because Berkshire Hathaway has little investments in the US real estate market.

The owner of the business offering these foreclosure opportunities as investments was quoted as saying, “”We are managing to secure family homes that are achieving rents of $900-$1200 per month for between $50,000 and $75,000 in quality cities where jobs growth is stimulating rental demand.” Phil Gerathy was talking about the Michigan market and he seems to have some connections to be able to land deals on the houses at $50,000 when average listing prices are pushing $200k.

The press release focused on the Australian investments they’re trying to perfect and build. If you live in the US and you’re trying to decide whether to invest in a home or in foreclosures, it’s probably a good sign that you should act if other groups from foreign countries are. Foreclosure properties are still out there but demand is certainly picking up almost nationwide.

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Houston Home Prices Break Records

Houston Home Prices Break Records, Sales Highest in 4 Years

Houston Home Prices Break Records

 

There are certainly some really depressed markets in the real estate market right now. Las Vegas is dragging the entire US market into a gloomy state with low sales, high foreclosures and a lot of rough positions. Houston, Texas however is busting out of the gates and making Realtors across the country take notice.

If the Houston Real Estate market isn’t screaming at least a temporary recovery we just don’t know what else would do it. The Houston Association of Realtors (HAR) have announced with a report that home prices have now broken records and sales volume has reached the highest it has been in four years.

In interviews it was revealed that jobs are making a big impact on the real estate economy in Houston. “Both buyers and sellers are reaping the benefits of an extremely healthy and robust real estate climate in Houston, driven largely by continued job gains that have been responsible for drawing many new consumers to this market,” said Wayne A. Stroman, HAR chairman and CEO of Stroman Realty. “Buyers are able to take advantage of the lowest interest rates in history as they shop for homes, and we’re also hearing accounts of sellers receiving the asking price for their homes, and in some cases getting even more.”

A single-family home has seen price increases that have been pegged at about 8.5% from 2011 to 2012. The single-family home average price is now $237,083 which is the highest that Houston has ever seen.

So the prices of the Houston home values are on a steamy rise what about the sales volume? May 2012 saw sales volume in the Houston home market see gains of 10.5% from a comparison of last year to May in 2012. The total pending sales in the Houston area were 4,476.

HAR MLS Market Update Video for May 2012

Join David Mendel and HAR Chairman Wayne Stroman, as they discuss property sales for May 2012.

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Southern California Real Estate Sales Up

Southern California Real Estate Sales Up

If you are thinking about buying a house in Southern California, expect to pay higher prices compared to a year ago. Southern California saw a 20 percent increase in real estate sales in May and the median price hitting a 20-month high.

Southern California HomesDataQuick President John Walsh said in a statement about the increase in real estate sales for Southern California, “The market is being slowly nursed back to health by low interest rates, a modestly improved economy and, we suspect, a widening sense that the housing sector is at or near bottom.”

Home sales in San Diego County jumped by 21.5 percent in May, compared to the same month a year ago, while prices increased by 3.2 percent. In Los Angeles County, home sales increased 25.3 percent in May compared with a year earlier. For all of Southern California, real estate sales increased in May by 20.6 percent, and the median price for houses increased by 5.4 percent going from $280,000 to $295,000.

So why are prices of houses going up along the Western coast? DataQuick said one reason prices rose was increased sales activity in higher-priced coastal markets. Also, having low mortgage rates will help improve the economy with housing prices at or near a bottom low.  With the median price is still 40 percent below its peak of $505,000 in the middle of 2007.

Stuart Gabriel, director of UCLA’s Ziman Center for Real Estate said, “Housing has lagged the recovery overall, but we are finally seeing broad-based evidence of a recovery that is kicking into gear. My sense is that there is a broad perception among the potential home buyers that we are close to the low point in the interest-rate cycle and the home-price cycle, and housing affordability is about as good as it is going to get.”

Even though real estate sales in Southern California are booming, it’s still 14.5 percent under the average sales tally for May since 1988.

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Top 10 Cheapest Towns in the US

Top 10 Cheapest Towns in the US

Living in this economy these days can be a little taxing on your wallet, and budging ones expenses seems to be a norm as well. The various Cities we live in also ultimately determine the type of lifestyle a person has, and how they interact with society. When it comes to calculating living expenses, the Council for Community and Economic Research surveyed close to 300 communities in the US this quarter according to Yahoo.

There are 10 US cities that are the cheapest in the country, the state of Texas has three of them, along with the mid-west holding down four spots. Just making the list at number 10 is a town in Oklahoma called Pryor Creek, it has the nation’s fifth-cheapest cost for miscellaneous items, and ranks 28th for cheapest health care. You can also get around town cheaply as it costs 7% for transportation, which is better than the national average. Along with these living conditions for one-bedroom homes can range from $10,000 to a nice 3-acre home topping off at $995,000.Pueblo Colorado

Coming in at number 9 is a town in Colorado called Pueblo, it has the 15th best housing cost, the nation’s sixth best miscellaneous cost, and transportation cost is 4% below the nationally average. As far as buying a house goes, you can get a three-bedroom house for $14,500.

To make the cut at number 8 we take a look at Arkansas and the town of Conway. The town has been ranked in the top ten for health care cost the past few years, and now ranks second best in the nation for lowest health care cost, almost 20% lower than the national average. To go along with their highly ranked health care cost, they carry the third best cost for miscellaneous items.

For the number 7 rank we head to Ohio to a town about 60 miles away from Cleveland called Ashland. This town has the second best prices for miscellaneous items, and 19th best for housing cost and you can get a two bed-room house for $20,000.

For the number 6 town in the countdown we make our way down to the state that is known for their state fairs and doing everything big… Texas. Temple, TX is the first of three Texas towns in the countdown, this town of 66,000 people has the fourth best lowest prices for groceries, and the 12th least-expensive housing cost. Transportation in Temple is close to 10% below the nationally average, and its health care cost is 8% below the national average as well. As far as housing, a three-bedroom house goes for $20,000.

Starting off the top five lists is another Oklahoma town called Ardmore. This town has one of the biggest percent differences when it comes to the housing cost compared to the national average. Ardmore housing cost is 21% below the national average, and you can get a one-bedroom house for around $15,000. To go along with this, the town has the 13th-best health care prices and 14th-best utility charges.

The mid-west makes another cut with the 4 cheapest town Fayetteville, AR. The 45 square mile town has the nation’s 12th best prices when it comes to transportation, the 17th lowest prices in groceries, and 9th lowest miscellaneous cost. Getting a three bedroom house in this town will run you close to $30,00o

McAllen Texas

McAllen makes it into the list for the second of three towns in Texas for the countdown at number 3. Located just five miles north of Mexico this town has one of the top 10 best prices for groceries, as it ranks 6th nationally. Along with ranking high with groceries,the people of McAllen claim the lowest housing cost out of all 10 towns, as its cost is nearly 40% below the national average.

Tennessee makes an appearance on the list with the second cheapest town in America with the popular city of Memphis. The jazz capitol of the US has an outstanding housing cost, just like McAllen, Memphis housing cost is close to 32% below the national average, and you can actually get a three-bedroom house for wait for it…. $2,000.

Rounding out the top 10 is Texas’ third entry with Harlingen claiming the nation’s cheapest town title. Nestled 10 miles away from the US-Mexican border this town has the nation’s lowest cost for miscellaneous goods, has the fourth-cheapest transportation cost, and fifth best grocery cost.

That rounds out the nation’s 10 cheapest towns, if you live in one of these towns congratulations to you, let’s see if these towns can hold up in this economy now.

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Short Sale Tax Relief Set to Expire

Short Sale Tax Relief Set to Expire

If you are a person that wants to get in on the short sale tax relief, now is the time. Short sales will start to become even more popular by the end of 2012 because the tax relief law will be set to expire.

Homeowners who sold their home in a short sale or have had some other sort of mortgage debt forgiven or canceled, can take advantage of this short sale tax relief.  The completions of short sales in order to qualify for the tax relief act is set for the deadline of Jan. 31, 2013. Since short sales can take an average of four to eight months to complete, homeowners are running out of time to take advantage of this offer.

Marge Peck, associate broker and co-owner of Discover Arizona Real Estate, a company that specializes in short sales in Mesa, Arizona says, “Everybody that is considering a short sale needs to talk to a CPA and see if now is the time for them to get off the Titanic and in a lifeboat before this law expires. I’ve just hired more staff. We’re prepared for the tsunami of people saying ‘I’ve waited long enough, nothing’s going to change.’”

Short sales are transactions where the borrower owes more than the home is currently worth, so the lender agrees to accept less than the full mortgage payoff at closing time.

If a bank forgives the amount the borrower is upside down with, such as a short sale, they would still have to pay taxes on that forgiven amount, since the Internal Revenue Service sees it as income.

Penny McLaughlin, owner of Penny’s Team based in Poulsbo and a certified distressed property expert (CDPE) says, “People who are underwater with their mortgage need to figure out if they’ll go into a short sale or let it foreclose.  It used to be ‘horrible’ to do a short sale … but it’s better on their credit. I’ve had people who’ve done a short sale and are now being able to buy, 18 to 20 months later.”

According to CoreLogic, a provider of consumer, financial and property information short sales made up 9.1% of home sales in March, that’s up from 7.39% in March 2011, 6.67% in March 2010 and 4.79% in March 2009.

Daren Blomquist, vice president of RealtyTrac estimates this pattern will continue. “I think we will continue to see them go up. It’s like the pattern you saw with the home buyer tax credit—the biggest spike is at the end of the deadline. I would expect to see a similar pattern with the pre-foreclosure sales.”

Short Sale Tax Implications

Short Sale Tax Implications expires in 2012. If you are looking to do a Short Sale you have less than 6 months left. 2012 is the last year so don’t take any chances.

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