Seattle and Los Angeles are also poised for a rebound, he said. Places like these that are “supply-restricted” tend to snap back fairly quickly if they have a strong economic base.Texas is an example of an area with a strong economic base that is not restricted in terms of housing supply, so Boud does not see the Lone Star State as a prime investment opportunity. He sees downward pressure in the near-term continuing in Phoenix and Las Vegas, and says that places like Salt Lake City and Denver “entered the down cycle a little bit later than most and will be a little bit slower coming back.” He cited Sacramento as having poor prospects because its economy is so tied to California’s government, which is expected to shed jobs for some time to come.
The most distressed housing markets like Las Vegas, where it is reported that a majority of homes are now bought with cash, the foreclosure market presents a business opportunity. “What we’re seeing is a lot of investors, those who are relatively wealthy, purchasing homes at very low prices and putting renters in them,” says Boud. “The rental rate is higher than the mortgage rate, so investors can be in the black right way.” Boud says buying foreclosed properties and renting them for five years is “a viable business plan” for those willing to be a landlord, and it also helps the economy by reducing the supply of distressed homes.
Aside from short-term investing opportunities, Boud is most enthusiastic about the long-term, saying, “There are drivers in place that can create an economic cycle such as we have never seen.” Just as the world has seen an industrial age and an information age, the next wave will be an energy age, he says, arguing that energy-efficient housing can lead the way. Boud says there will be a very large multiplier effect if we build homes with both energy conservation features–solar panels, high-efficiency HVAC systems and LED lighting –and energy-producing capacity through fuel cells and wind turbines that produce electricity.
Daily Archives: August 25, 2011
Pound Ridge Homes | Foreign buyers see value in U.S. real estate – The Globe and Mail
Bedford Homes | On Second Thought: Analysts Rethink Real Estate Outlooks for Rest of Year – CoStar Group
Waccabuc Realtor | StreetEasy Adds New York Real Estate Broker Ratings – The Washington Post
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North Salem Realtor | Assessor: Silicon Valley real estate market may finally have hit bottom
County Assessor Larry Stone is optimistic — but with caution — about Silicon Valley’s real estate market.
Silicon Valley’s real estate market may have finally hit bottom, according to a report from County Assessor Larry Stone.
In total, the net assessed value of all real and business property increased slightly from $296 billion to $299 billion, a 0.88 percent increase.
“Compared to the last three years, this very small increase in property assessments provides encouraging news, and hopefully signifies the beginning of a positive trend out of the depths of the Great Recession,” Stone said. “However, when considered in the context of recent history, it is the third-worst assessment roll growth on record during my 16-year tenure as County Assessor.”
Growth resulting from new construction also recorded a small improvement over historic lows in 2010, the report shows. While the number of newly constructed properties declined 14 percent, the assessed value per building permit soared 50 percent, suggesting renewed confidence in Silicon Valley’s economic future.
While the county assessment roll increased, there were major geographic differences. Cities including Los Altos Hills and Los Altos experienced solid growth at 3.81 percent and 3.59 percent, while Milpitas was negative at -3.48 percent.
In the county’s 13 high school and unified school districts, six posted assessment roll growth slightly less than the County’s 0.88 percent. Ten districts were between -0.74 and 1.65 percent. Only Milpitas was significantly lower at -3.48 percent while Mountain View-Los Altos School District posted strong roll growth at 3.29 percent. With a -0.7 percent decline in growth, East Side Union High School District, with one-third of all residential parcels, accounted for 48 percent of all home foreclosures.
Click here to read the full report by clicking on “annual report.”
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Katonah Realtor | The New Real Estate Market Needs RentChimp as Home Shoppers Decide: Apartment for Rent or House for Sale?
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