Category Archives: Westchester NY

Prepare for a better home inspection | Bedford Real Estate

Leave a reply

Every agent learns early in his or her career that home inspections can be rough. But there are ways to smooth out the process.

First, get your seller to have an independent inspector give the house a once over before it is listed. That way, problems can be spotted — and corrected — before a would-be buyer ever gets wind of them.

Beyond that, prepare your clients for the buyer’s inspector and encourage the seller to fix those items he knows are broken — the little things every owner learns to live with — before they become bargaining points.

Many inspectors provide agents with pre-inspection checklists so all parties can be as sure as possible that the house is inspection-ready. There are a lot of things sellers can do, but if they are not skilled at certain repairs, even the simplest ones, they should call a professional such as when an air conditioner repair is needed . Not only can inspectors spot amateurish, sub-par work, they will wonder about the quality of repairs that are less visible.

When repairs are made, either by the seller or a professional contractor, it’s a good idea to have paid receipts and warranties on hand for the inspector and buyer.

Finally, on the day of the inspection, sellers should give the examiner full access to the attic, crawlspace, electrical panels, furnace, air conditioner and water heater. Get the clutter out of the way, and then take the kids and the dog and go out for a few hours so the examiner can do his job efficiently and without interference.

read more…

https://agentresources.bankofamerica.com/monthlyagentnewsletter?nbk=NBKJDBM#101402

Home Prices are 3% Undervalued Nationally | Pound Ridge Real Estate

Leave a reply

Trulia’s Bubble Watch shows whether home prices are overvalued or undervalued relative to their fundamental value by comparing prices today with historical prices, incomes, and rents. The more prices are overvalued relative to fundamentals, the closer we are to a housing bubble – and the bigger the risk of a price crash. Sharply rising prices aren’t necessarily a sign of a bubble. By definition, a bubble develops when prices look high relative to fundamentals.

Bubble watching is as much an art as a science because there’s no definitive measure of fundamental value. To try to put numbers on it, we look at the price-to-income ratio, the price-to-rent ratio, and prices relative to their long-term trends. We use multiple data sources, including the Trulia Price Monitor, as leading indicators of where home prices are heading. We combine these various measures of fundamental value rather than relying on a single factor because no one measure is perfect. Trulia’s first Bubble Watch report, from May 2013, explains our methodology in detail. Here’s what we found this quarter. (This report contains larger-than-usual revisions of previous Bubble Watch estimates. See note.)

We estimate that home prices nationally are 3% undervalued in the third quarter of 2014 (2014 Q3). In 2006 Q1, during the past decade’s housing bubble, home prices soared to 34% overvalued before dropping to 13% undervalued in 2012 Q1. One quarter ago (2014 Q2), prices looked 5% undervalued; one year ago (2013 Q3), prices looked 6% undervalued. This chart shows how far current prices are from a bubble…

 

read more….

 

 

http://seekingalpha.com/article/2533125-bubble-watch-home-prices-3-percent-undervalued-with-few-metros-bubbling-up?ifp=0

San Francisco Real Estate is Down | Chappaqua Real Estate

Leave a reply

Here’s one sign that the cooling off for housing appreciation has become widespread: The hot San Francisco housing market actually saw home prices drop in July, marking the city’s weakest result since early 2012, according to data released Tuesday morning.

Looking at a broader gauge of prices in 20 cities, July saw overall growth of 0.6% in July, slower than the 1% rise in June, according to S&P/Case-Shiller’s 20-city composite index.

After seasonal adjustments, home prices among the 20 cities fell 0.5% in July — the biggest drop since October 2011 — compared with a 0.3% decline in June.

Slower appreciation could encourage more buyers, though prices are still outpacing inflation. A larger number of homes on the market has helped cool down home-price growth. At the same time, demand has been somewhat curbed by increasingly pricey properties and mortgage loans.

Meanwhile, annual growth slowed down, with year-over-year home prices rising 6.7% in July — the slowest pace since late 2012 — compared with annual growth of 8.1% in June. Among the 20 tracked cities, 19 saw slower annual growth in July.

“The geographic breadth of the pullback in prices is noteworthy,” Stephen Stanley, chief economist at Pierpont Securities, wrote in a research note. “Apologies if you are looking to sell your home, but perhaps a bit of relief on the price side will help to bolster housing demand, which has been disappointing lately.”

 

 

read more….

 

http://www.marketwatch.com/story/house-prices-see-widespread-slowdown-in-july-2014-09-30

 

10 most distressed properties in NYC | Waccabuc Real Estate

Leave a reply

Savvy real estate investors made a killing on distressed properties in the wake of the financial crisis. But as the market continues to get stronger — and as distressed assets continue to be worked out — the well has dried up.

“Last August, we had $4 billion in loans delinquent for more than 60 days in New York City, now we’re down to $3.5 billion,” said Joseph McBride, a research analyst at commercial mortgage analytics website Trepp. “There were 35 loans on the list last year, now there are 25.” The overall delinquency rate for properties in the city also fell, to 5.43 percent from 6.5 percent.

“It’s a good sign for the city, obviously,” added McBride, noting that he expected the overall amount of delinquent loans to drop even further next year. Despite an outlier like the $3 billion outstanding loan on Stuyvesant Town – Peter Cooper Village, McBride said lower-balance loans are getting resolved in a far timelier manner.

“Once that thing [Stuy Town] gets resolved,” he said, “it’s a huge rock in the pipe that’s cleared out.”

The majority of delinquent loans are for multifamily properties with pro-forma underwriting, Trepp analysts said, meaning that the borrower was betting on rents to appreciate.

Here are the 10 largest delinquent loans on New York City real estate assets, according to Trepp data from August.

1) Stuyvesant Town-Peter Cooper Village (Manhattan)
Outstanding balance: $3 billion

Stuyvesant Town and Peter Cooper Village

Stuy Town’s financial troubles started after a disastrous $5.4 billion takeover led by Tishman Speyer and BlackRock at the very height of the property boom in 2006. The buyers turned over the keys to the complex in 2010, making it one of the largest casualties of the real estate downturn.

Senior bond holders represented by CWCapital Asset Management now control the sprawling, 11,000-apartment, 110-building complex, which a recent deed transfer valued at just over $4.4 billion. Last month, CWCapital, which is angling to sell the complex, agreed to extend a deadline on talks to keep it affordable. Private equity giant Fortress Investment Group, which owns CW Capital, is said to be readying a $4.7 billion bid for the complex.

An estimated 5,000 apartments in the complex are now market-rate.

2) Riverton Apartments at 2156 Madison Avenue (Manhattan)
Outstanding balance: $225 million

The Riverton apartments in Harlem

Stellar Management’s Larry Gluck and private equity giant the Rockpoint Group paid a hefty $135 million for this Harlem rent-stabilized complex in 2005, which has 1,228 apartments in seven buildings, and counts Mayor David Dinkins and the jazz pianist Billy Taylor among its former residents.

A year later, Gluck refinanced Riverton for $250 million, a move that allowed him to recoup his $44 million initial investment and make a hefty profit on the deal, according to the New York Times.

In 2009, Gluck defaulted on the debt and offered to turn over the deed in lieu of foreclosure. The delinquent loan currently stands at $225 million, Trepp’s data show.

3) The Shoreham Hotel at 33 West 55th Street (Manhattan)
Outstanding balance: $33.8 million

The 50,000-square-foot, 11-story hotel was owned by ARK Partners, whose principals are Brad Reiss and John Yoon. The loan, which was originated by Column Financial in 2006, was recently moved to special servicer C-III Asset Management, which is pursuing a deed in lieu of foreclosure, according to Trepp.

read more….

http://therealdeal.com/blog/2014/09/29/10-most-distressed-properties-in-nyc/?utm_source=The+Real+Deal+E-Lerts&utm_campaign=3c27046046-New_York_Daily_Updates_9_30_14&utm_medium=email&utm_term=0_6e806bb87a-3c27046046-385733629#sthash.0GAYLxpN.dpuf

NAR economist predicts booming sales | Waccabuc Real Estate

Leave a reply

With 8,000 baby boomers expected to retire daily for the next several years in the U.S., Southwest Florida stands to benefit from a massive influx of home buyers, the chief economist of the National Association of Realtors believes.

Lawrence Yun said the baby boom influx will not be just from the U.S. states, because the phenomenon was not limited to America.

“After the war, servicemen came home and started having babies,” Yun told an audience of 200 Wednesday at the annual Sarasota International Real Estate Conference.

“The same thing happened all over the world.”

Already, half of all foreigners who buy real estate in Florida are retired.

In all, foreign buyers make up about 10 percent of the state’s buyers, Yun noted, though locally that figure may be higher.

While German buyers tend to acquire property in Naples — partly because there’s a direct flight from Frankfurt to Southwest Florida International Airport outside Fort Myers — Sarasota attracts a more diverse international buyer, led by Canadians and residents from Great Britain, Yun said.

Chinese buyers may become a greater presence here, too, because that country’s economy continues to “turn out millionaires right and left,” Yun said. Economic growth there is roughly 8 to 9 percent annually, on par with America’s growth in the 1950s.

“We have seen a surge of Chinese buyers coming into the U.S., primarily on the West Coast,” Yun told the conference, which was sponsored by the Sarasota Association of Realtors’ Global Business Council. “But they will begin to see that other parts of the country are attractive.”

read more….

http://www.heraldtribune.com/article/20140925/ARTICLE/309259992/-1/todaysweb?Title=NAR-economist-predicts-booming-sales

Confidence in Phoenix housing market fell in 2014 | Bedford Real Estate

Leave a reply

Consumer confidence in metro Phoenix’s housing market dropped over the summer as sales and price increases sagged.

The Zillow Housing Confidence Index for the Valley is now at 64.2, compared with 66.7 in January, according to a report released Tuesday.

Nationally, the housing confidence index is 64.2, up from 63.7 at the beginning of the year.

Of the 20 largest U.S. metros, consumer confidence for San Francisco’s housing market is the highest at 68.2. Chicago ranks the lowest at 60. Phoenix ranked 13th.

Homeowners are more optimistic than renters about Phoenix’s housing market. Homeowners polled gave the area a 66.6 rating. The index score among renters was 59.6.

During July, Valley home sales fell 4.5 percent from June and 18 percent from July 2013. The Valley’s median sales price was $210,000 in July 2014, down $1,000 from the previous month.

In August, home building across the Phoenix area fell to the slowest pace in more than a year.

The index is compiled from 10,000 surveys. The margin of error for the survey is plus or minus 1.2 to 2 percent.

The indices for metro areas are measured on a scale of 0-100, with readings above 50 representing generally positive sentiment, and readings below 50 indicating negative sentiment, Zillow said.

 

 

read more….

 

 

http://www.azcentral.com/story/money/real-estate/catherine-reagor/2014/09/23/confidence-phoenix-housing-market-fell/16131937/

10 Signs You Are Ready to Invest | #PoundRidge Real Estate

Leave a reply

When it comes to property investment, timing is everything. Ultimately, choosing the right time to enter the market will have a significant impact on the long-term success of your investment.

But how can you, as an investor, know whether the timing is right? Here are 10 tell-tale signs that now is the time to start building your investment portfolio.

1. You are financially ready. You have saved enough for the down payment and you have also established your emergency fund. You have taken into account home maintenance expenses. Your credit history is good and you are able to meet all the financial obligations.

2. You have set your long-term goals. You have a clear picture in your mind of your investment’s purpose and you are flexible enough to adjust to changing circumstances. You are not hesitant.  When the timing is right, you are able to adapt to the market needs and the development of technologies.

3. You have done your research. You know the neighborhood of your future property well enough to foresee the coming trends and the possible changes in the community. You have researched all the schools in the area as well as the best commuting means.

4. You have chosen a stable economy. The area is financially stable, economic trends are promising and equities are surging. No demographic fluctuation or no irregular variation of population have been recorded in the area.

5. You understand the country’s policies regarding real estate. The policies of the region promote and encourage a positive, innovative environment as well as drive further economic growth. The tax policy in the country is positive for homeowners. Global innovation index is rising in the area.

6. Infrastructure projects are underway and likely to lead to an increase in property values. The infrastructure of the area is being developed with a focus on: transport, energy, solid waste and water management developments.

7. The region is moving toward sustainable development. The region’s awareness of global and local environmental issues is increasing, the demand for eco-friendly homes as well as for sustainable rural and urban development is rising. As more and more people head toward sustainable living, investing in sustainable property will increase its value in the future.

read more….

http://blog.realestatebook.com/2014/09/23/10-signs-you-are-ready-to-invest-in-real-estate/

Are Home Values Back to Normal? | Mt Kisco Homes

Leave a reply

Have you ever asked yourself, “Are home prices over- or undervalued today?” If so, you have been comparing current prices to prices over the long-term trend, which is known as intrinsic value.

Many of the best investors in the world tout intrinsic value as the most important metric for long-term investing. Buy when prices fall below intrinsic value and don’t buy when they rise above. The difficulties come in determining your opinion of intrinsic value and having the patience and courage to withstand what can sometimes be very long periods when prices are over- or undervalued.

Last week, we sent our values to our clients, and just this week John presented the methodology at a mortgage industry conference in DC. The reception has been fantastic.

To cut to the chase, we believe a long-term view of housing dictates that homes are overvalued today by 3.5%—but range from 11% undervalued to 20% overvalued depending on the MSA. This is not a bearish view on housing simply because:

  • 3.5% income growth will solve the problem, and
  • we used a 6.0% mortgage rate for our calculation, and rates are much lower today.

We also assumed that the best long-term ratio of housing costs / income* is 31.4%, ranging from 21.0% in Atlanta to 79.5% in San Francisco. In 29 of the top 30 markets, we used a ratio that is higher than the historical average over the last 20 years because we believe US housing has become slightly more expensive. Determining this ratio by market was difficult, particularly in markets that seem to be undergoing permanent changes in homeownership demand, both positively and negatively.

 

read more….

 

http://investorextreme.com/have-home-values-finally-normalized/

 

10 places where home prices have fallen the most | #MtKisco #RealEstate

Leave a reply

Let’s call it cause for optimism. After one of the worst housing collapses in history seven years ago, price declines have pretty much halted across every major metropolitan area in the U.S. Alas, these 10 U.S. Census metro areas with population of more than 250,000 still had small drops (-0.71 percent to -4 percent) in existing single-family home prices for the year ending June 30. Prices come from CoreLogic, a data and analytics company.

In many of these cities, the housing markets never really boomed nor busted. Most of them have ample supply of homes and relatively cheap prices, which should favor buyers. But many also have low wage bases, or declining or aging populations. Others rely on an employment sector that hasn’t fully recovered from the recession. A couple of them are still burdened by a large share of distressed sales.

Benchmark statistics nationally (all are medians): One-year change in home prices: 7.5 percent. Median home price: $185,038. Change in price since 2006 peak: -12.9 percent. Months’ supply of homes: 5.5 months. Unemployment rate: 6.1 percent (seasonally adjusted), 6.3 percent (non-adjusted). City-specific unemployment rates that follow are non-adjusted. Rate of job growth: 1.8 percent. Distressed sales: 15.5 percent.

 

read more…

 

 

http://realestate.msn.com/10-places-where-home-prices-have-fallen-the-most

New home sales power higher in August, soar by 18 percent | #SouthSalem #RealEstate

Leave a reply

Sales of new U.S. single-family homes surged in August and hit their highest level in more than six years, offering confirmation that the housing recovery remains on course.

The Commerce Department said on Wednesday sales jumped 18.0 percent to a seasonally adjusted annual rate of 504,000 units. That was the highest level since May 2008 and marked the second straight month of gains.

July’s sales were revised to show a 1.9 percent gain instead of the previously reported 2.4 percent drop.

Economists polled by Reuters had forecast new home sales rising to only a 430,000-unit pace last month.

While the new home sales segment accounts for only 9.1 percent of the housing market, the increase last month should allay fears of renewed housing weakness after a surprise decline in home resales last month.

A survey last week showed homebuilder sentiment hit its highest level in nearly nine years in September, with builders reporting a sharp pick-up in buyer traffic.

In August, new home sales soared 50 percent in the West to their highest level since January 2008.

Sales in the populous South increased 7.8 percent to their highest level in 10 months. In the Northeast, sales rose 29.2 percent, but were flat in the Midwest.

 

 

 

read more…

 

http://www.cnbc.com/id/102028719