5 Things You Should Always Do Before You Buy a Home | Armonk Homes
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Is snow a good or bad forecast for housing? | Armonk NY Homes
IMF: Sudden drop in housing prices could cause recession | Armonk NY Homes
If housing prices fall too quickly, it could trigger a recession in Israel, the International Monetary Fund wrote in its annual consultation, released Wednesday.
Home prices are about 25% higher than their long-term fundamental value, the report said, noting that levels of income and rent do not justify the prices. That level is in and of itself worrisome, but its effects the real economy will depend on how quickly the prices come down.
“A slow correction would allow the economy to escape a recessionary episode, but economic prospects would be weak for a prolonged period of time. By contrast, a rapid adjustment would lead the economy into recession, with consumption and output recovering two years after the shock,” the report said. A third scenario, in which prices slowly adjust to their equilibrium value, would leave the economy relatively unscathed.
According to the report, there is a 20% probability of a housing “bust,” in which real estate loses over a tenth of its value, happening in the next five years. If prices were to fall 6.5% in one year, consumption growth would fall 3% in the long run.
That may come as a surprise to both Finance Minister Yair Lapid and Housing Minister Uri Ariel. When The Jerusalem Post asked Lapid about the danger of a rapid drop in house prices in September, he responded, “When somebody lives within his house and the price is lower, it doesn’t affect his life in any way. I’m more concerned about not succeeding to lower the price.”
Beautifully Redone 1920s Mediterranean Revival Asks $5.6M – House of the Day | Armonk NY Homes
Home Prices May Not Get Back to Peaks Until 2021 | Armonk NY Homes
Despite the recent breakneck clip of home appreciation in some parts of the country, national home prices are on pace to rise just 3 percent to 5 percent annually, according to a new report by real estate analytics firm Clear Capital.
The report finds that national market has finally recovered from housing bust, with home prices have been increasing within 2 percent of their inflation-adjusted long-run average levels. That doesn’t mean prices are anywhere near their peaks at the height of the bubble; at the current pace of appreciation, they won’t reach those levels until 2021.
“With the majority of metro markets still so far below peak prices, it’s time for conversations surrounding price trends to shift away from the 2006 peak as a point of reference, and back to current trends an forecasts,” Alex Villacorta, Clear Capital vice president of research and analytics said in a statement.
“While there are certainly investors and homeowners holding real estate assets tat will be underwater for seven years or more, the current housing market is positioned to behave very sillier or even below historical norms.”
In real terms, inflation-adjusted home prices are below their 2003 levels in 92 percent of markets, and half of markets are still below their 2000 levels. Honolulu is the only city in the top 50 markets to be near its peak level.
http://finance.yahoo.com/news/home-prices-may-not-back-175500422.html
13 Oddball Examples of Reclaimed Soviet Architecture | Armonk NY Real Estate
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Since the fall of the U.S.S.R. in 1991, Russian and former Soviet satellite governments and city planners have been muddling through ways to redefine and reclaim architecture left in the wake of a world power’s dissolution. It’s a question of how to assess and celebrate Soviet buildings, which have gross cultural weight as harbingers of the Space Age and Brutalist aesthetics, while making room for modern needs; sensitively memorializing the past with plenty of airspace for the future. The ways Soviet structures have been rehashed and reconfigured seem innumerable, if incredibly fascinating to unpack. Below, 10 ways governments, artists, and planners have used the spaces:
http://curbed.com/archives/2014/01/28/13-oddball-examples-of-reclaimed-soviet-architecture.php
If you work in real estate, you better know these | Armonk NY Real Estate
So you are entering the real estate world? Whether you are trying to buy or sell a home (or do both!), you need to familiarize yourself with the lingo.
You don’t want industry jargon to confuse you and keep you from missing something crucial. Here are 15 real estate buzzwords to keep you in the know.
1. Adjustable Rate Mortgage (ARM)
When applying for a home loan, you can get an adjustable-rate mortgage (ARM) or a fixed-rate mortgage. An ARM usually has a specific interest rate for a set time and then the interest rate fluctuates. Most of these mortgages have a cap on how high the interest rate may increase.
2. Amortization Schedule
First off, amortize basically means to reduce a debt. An amortization schedule is a detailed breakdown that illustrates how much interest and principal of the mortgage has been paid off and how much remains with each payment.
3. Closing
The final step in a real estate transaction, a closing is the transfer of the title of the property for money or other considerations.
4. Down Payment
The down payment is the amount of money that a buyer pays upfront in order to purchase a property. This amount is typically between 5% and 25% of the value of the property.
5. Escrow
When a third party holds property, cash and the property title until all conditions of the property agreement have been satisfied. The third party, likely a lawyer, will then hand over the assets to the respective parties, as outlined in the agreement.
6. Fannie Mae/Freddie Mac
The Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) are two government-sponsored enterprises that purchase mortgages from lending institutions. Their purpose is to promote stability and affordability in the housing market.
http://therealdeal.com/blog/2014/01/25/14-real-estate-terms-that-everyone-should-understand/