CRYSTAL LAKE – After a long hibernation, new homes are starting to spring up in McHenry County in another sign of the real estate market’s recovery.
After the housing bust, new home purchases dropped significantly as buyers found irresistible deals on foreclosures and short sales of existing homes. But the county’s dwindling supply of existing homes, combined with low interest rates and pent up demand, have buyers once again considering new homes.…
The February Mortgage Monitor report released by Lender Processing Services Inc. (LPS) found an increase in loan “cure” rates (those loans that were delinquent in the prior month and are now current). The majority of cures were on loans one-to-two months delinquent, with approximately 500,000 loans curing in February alone. As LPS Applied Analytics Senior Vice President Herb Blecher explained, these cures were not unusual, but rises seen in loans three-to-five months delinquent and foreclosure-initiated categories were unexpected.
“Historically, we see these seasonal increases in cure rates in February and March each year,” Blecher said. “What stood out in this month’s data was where that increase was centered. February’s rise in cures was driven almost entirely by FHA loans, representing a 29 percent increase from January, and likely driven by revived modification activity related to the revisions to the FHA’s Loss Mitigation Home Retention options released late last year.
“We also looked at loan modification data released in the Office of the Comptroller of the Currency’s Mortgage Metrics report (aggregated by LPS) and saw that, after two years of steady decline, modification volume increased substantially in the last half of 2012, with about 280,000 modifications occurring during that time,” Blecher continued. “The majority of the increases in both Q3 and Q4 occurred in proprietary modifications as opposed to through the Home Affordable Modification Program. Given the current FHA activity, along with the FHFA’s recent announcement of its Streamlined Modification Initiative, we could see continued strength in modification volumes in the future.”
A new U.S.-focused real estate forecast from the Urban Land Institute and Ernst & Young reflects renewed optimism for growth in real estate capital markets and commercial real estate fundamentals, and even stronger expectations for housing than those made just six months ago.
(Logo: http://photos.prnewswire.com/prnh/20100310/ULILOGO)
The findings, based on a survey of 38 of the nation’s leading real estate economists and analysts, were released today in the semi-annual ULI/E&Y Real Estate Consensus Forecast, prepared by the ULI Center for Capital Markets and Real Estate. The survey, conducted between March 4 and March 25, 2013, is the third in a series of polls initiated to gauge sentiment among economists and analysts about the direction of the real estate industry.
Predictions for commercial real estate activity improved significantly from the last survey, conducted in September 2012. Transaction volume in 2013 is expected to rise to $310 billion from $290 billion in 2012, then rise to $340 billion in 2014 and $360 billion in 2015. The issuance of commercial mortgage-backed securities (CMBS), a key source of financing for commercial real estate, is expected to jump by nearly 50 percent this year, rising to $70 billion from $48 billion in 2012. In 2014, CMBS issuance is expected to reach $80 billion; in 2015, $100 billion.
Total returns for equity real estate investment trusts (REITs), as tracked by the National Association of Real Estate Investment Trusts, are expected to be 12 percent in 2013, then moderate to 10 percent for 2014 and 8.0 percent for 2015. While these reflect a sharp decline from the surging REIT returns of 28 percent in both 2009 and 2010, the forecast suggests that REIT returns are settling at a more sustainable level.
Total annual returns from institutional-quality direct real estate investments for the apartment, retail, industrial and office sectors combined are forecast to be 9.5 percent in 2013, 9.0 percent in 2014 and 8.0 percent in 2015, continuing a downward trend that started last year, but remaining in the range of long-term historical averages
For several years, people in Kokomo and Howard County have been hesitant about purchasing or building a home. Foreclosures flooded the market as the recession hit hard, and the real estate market collapsed.
That’s old news. The Indiana Association of Realtors recently announced that the local housing market is on the mend. In fact, housing prices are up about 16 percent from a year ago. The median price of a home sold in February was $65,500.
The news was welcomed by Kokomo Mayor Greg Goodnight.
“The home sales gain is positive news for home sellers and buyers who are in the market during a period of historically low interest rates,” said Goodnight. “The recent census data identifying Kokomo and Howard County as gaining 119 new residents, business expansions, and this real estate market report are evidence of a growing local economy.”
According to Amy Pate, executive vice president of the Realtors Association of Central Indiana, there are a number of reasons why this recovery is taking place, but the top reason is also the most obvious one — jobs.
“Overall, the increase in meaningful jobs in our community has more to do with it than anything else,” said Pate. “That, paired with the fact that there is a decrease in inventory and the number of foreclosures are going down, means it is a little less of a buyer’s market than it has been.”
Pate explained that there are certain home price ranges or niches that are so lean on inventory that offers are being made just days after a home hits the market. For sellers in that range, the recovery is paying off immediately. However, it will take time, she said, before appraisals reflect the full impact of the recovery.
In other words, prices are bound to go higher. But even with the increase, Kokomo is a still a bargain.
“In Kokomo, the price increase is relative,” said Pate. “Compared to the rest of the U.S., we’re still an extremely affordable area. Interest rates are still excellent, so the key is what your financial condition is, coming out of the last few years.”
WESTCHESTER
Overview– Listing inventory fell to lowest first quarter total in four years.– Current supply is just below the 10-year average.– While sales are up, contract volume surged above year ago levels.– Overall price indicators were mixed indicating stability.Key Trend Metrics (compared to same year ago period)– Median sales price rose 2.6% to $390,000.
– Average sales price slipped 2.5% to $521,595.
– Number of sales increased 5.6% to 1,348.
– Listing inventory fell 17.5% to 5,587 units.
– Days on market was 220 days, up 3.8%
– Listing discount was 10%, down from 12.5%.– Monthly absorption rate was 12.4 months, down from 15.9 months.
By Property Type1 Family Market
– Median sales price was $515,000, up 1%.
– Number of sales increased 2.8% to 776.2-4 Family Market
– Median sales price was $350,000, up 6.9%.
– Number of sales rose 5.6% to 76.Co-op Market– Median sales price was $140,000, down 3.1%.
– Number of sales increased 8% to 283.Condo Market
– Median sales price was $310,000, down 0.8%.
– Number of sales increased 13.3% to 213.Luxury Market (upper 10% of all 1 family sales)
– Median sales price was $1,793,750, down 16.1%.
– The luxury threshold was $1,260,000.
We have just released the first quarter 2013 “Elliman Reports” for Brooklyn, Queens and Westchester; the leading resource on the state of these markets. As always, our market reports are produced in conjunction with Miller Samuel to provide you and your clients with the most comprehensive and neutral market insight available.
The Brooklyn housing market has tightened up quite a bit since last year. Listing inventory has fallen to a five-year low and housing prices have edged up to their highest level since the credit crunch began five years ago. The number of sales fell short of levels a year ago but the negotiability between buyers and sellers has grown closer than we’ve seen in years. We don’t anticipate much relief in supply in the near future, so current conditions are expected to continue in the coming quarters.
Inventory in Queens has fallen to an eight-year low, yet the number of sales increased from prior year levels. Low mortgage rates, a release of pent-up demand, and improving economic conditions have brought more interest to this market. Housing prices have remained remarkably stable, but these tighter conditions have brought buyers and sellers closer together on price. We anticipate more of the same in the coming quarters.
The Westchester market is defined by shrinking inventory–now at its lowest level in four years. While closed sales were higher than last year, signed contracts jumped above last year’s levels promising to make the spring market the most active in years. Housing prices have remained stable for the past several years, but a combination of low mortgage rates, rising activity, and low supply is expected to keep upward pressure on prices in the coming months.
We constantly look for ways to provide our clients with better information to enable them to make more informed decisions. Our efforts to make this market report series possible reflect my strong belief that in a market that is constantly changing, access to timely information is one of the greatest resources we can offer our clients. We are committed to providing the best information and services in the industry. Explore our full market report series covering Manhattan, Brooklyn, Queens, Long Island, The Hamptons, North Fork, Westchester/Putnam, Miami, Boca Raton, Fort Lauderdale and Palm Beach at http://www.elliman.com/marketreports
Warmest regards,
Dottie Herman
President and CEO
Douglas Elliman
*Visit the new, http://www.elliman.com to search from more than 40,000 listings and access all of our current market reports
We have just released the “Elliman Report: Manhattan & Brooklyn Rentals March 2013,” the leading resource on the state of the Manhattan and Brooklyn rental markets. As always, our market reports are produced in conjunction with Miller Samuel to provide you and your clients with the most comprehensive and neutral market insight available.
After closing out 2012 with a slight increase in rents at already high levels, Manhattan rental price increases have steadily grown larger in the first three months of 2013. Rents rose across all apartment sizes with the largest gains seen in the 2-bedroom and 3-bedroom markets. The market remains tight with the lowest vacancy rate in two years. The combination of an improving economy and tight credit is expected to increase pressure on rents throughout the year.
Increases in Brooklyn rental prices were strong and have been growing since the beginning of the year. New rental activity slipped as more tenants, unable to find more affordable places to live, signed more renewals. Landlord concessions continue to be the exception and not the rule with tighter supply. As the economy improves and with low mortgage rates in place, we don’t anticipate much change in the market in the coming months.
We constantly look for ways to provide our clients with better information to enable them to make more informed decisions. Our efforts to make this market report series possible reflect my strong belief that in a market that is constantly changing, access to timely information is one of the greatest resources we can offer our clients. We are committed to providing the best information and services in the industry. Explore our full market report series covering Manhattan, Brooklyn, Queens, Long Island, The Hamptons, North Fork, Westchester/Putnam, Miami, Boca Raton, Fort Lauderdale and Palm Beach at http://www.elliman.com/marketreports
Mortgage rates for 30-year fixed mortgages fell again this week, with the current rate borrowers were quoted on Zillow Mortgage Marketplace at 3.35 percent, down from 3.43 percent at this same time last week.
The 30-year fixed mortgage rate hovered between 3.48 and 3.33 percent for the majority of the week, dropping to the current rate this morning.
“Rates dropped last week after a weaker-than-expected U.S. jobs report on Friday,” said Erin Lantz, director of Zillow Mortgage Marketplace. “This coming week, we expect rates to remain depressed as lingering eurozone concerns and Japan’s new monetary policy push investors to safer asset types like U.S. mortgage-backed securities.”
Additionally, the 15-year fixed mortgage rate this morning was 2.54 percent, and for 5/1 ARMs, the rate was 2.28 percent.
What are the rates right now? Check Zillow Mortgage Marketplace for up-to-the-minute mortgage rates for your state.
*The weekly rate chart illustrates the average 30-year fixed interest rate in six-hour intervals.
Zillow has noticed a trend that could become problematic for both the U.S. housing market and policymakers in coming months.
By looking at two metrics — an affordability index and a price-to-income ratio — Zillow researchers have determined that low mortgage rates that make homes appear incredibly affordable are overshadowing a bigger overall trend in which the overall prices of homes are actually significantly more expensive than historic norms relative to annual incomes.
The affordability index measures the percentage of a homeowner’s monthly income devoted to housing (mortgage) payments. In the pre-bubble period from 1985 through 1999, homeowners spent 19.9 percent of their monthly income on mortgage payments. But because of historically low interest rates currently in the 3 to 4 percent range, at the end of Q4 2012, homeowners were spending only 12.6 percent of their monthly incomes on housing payments — or roughly 37 percent below historic norms. Low interest rates have translated into more purchasing power for homeowners, as the cost to finance homes has gone down.
The price-to-income ratio looks at the total cost/price of a home relative to median annual incomes. Historically, the typical, median home in the U.S. cost 2.6 times as much as the median annual income (so if the median income in an area was $100,000, the median price of a home would typically be about $260,000: $100,000 * 2.6).
While historically low mortgage rates are translating into big savings for homeowners, those same low monthly payments are masking a troubling trend. While home values have been on the rise for the past year — in some areas appreciating by 15 percent or more annually — median wages haven’t kept pace. As a result, home price-to-income ratios in many areas are climbing.
Because wage appreciation has failed to keep pace with home value appreciation, once rates rise and the illusion of affordability driven by smaller monthly payments disappears, the market will be left with homes that could potentially be too expensive to afford on the typical median wage.
“The days of historically high levels of housing affordability are numbered,” said Zillow Chief Economist Stan Humphries. “Current affordability is almost entirely dependent on low interest rates, and there’s no doubt that rates will begin to rise in the next few years. This will have an undeniable effect on demand for housing, as home buyers will have to spend more of their incomes to buy a home. Home values will have to either remain stagnant while incomes catch up or, quite possibly, home values will have to fall in some markets. This will especially be the case in some markets that have seen strong home value appreciation.”
Homeowners in 24 of the 30 largest metros covered by Zillow were paying more for homes in the fourth quarter of 2012 relative to their region’s median income than they were from 1985 through 1999. Metros with the largest difference between their pre-bubble and fourth quarter 2012 price-to-income ratios included San Jose (52.1 percent more), Los Angeles (48.8 percent more), Portland, OR, (45.4 percent more), San Diego (44.6 percent more) and Denver (40.8 percent more).
Of the 30 largest metros covered by Zillow, only Cincinnati (3.1 percent less), Chicago (3.9 percent less), Cleveland (6.7 percent less), Atlanta (13.9 percent less), Las Vegas (14.6 percent less) and Detroit (25.5 percent less) posted price-to-income ratios in the fourth quarter of 2012 that were less than historic norms.
Metro Area % Of Monthly Income Dedicated to Mortgage Payments, 1985-1999 % Of Monthly Income Dedicated to Mortgage Payments, 2012 Q4 Median Home Price Relative To Median Annual Income,
1985-1999Median Home Price Relative
To Median Annual Income,
2012 Q4UNITED STATES 19.9%
12.6%
2.6
3.0
New York 30.7%
21.9%
4.0
5.2
Los Angeles 35.3%
29.0%
4.6
6.8
Chicago 21.4%
11.4%
2.8
2.7
Dallas 16.6%
9.3%
2.1
2.2
Philadelphia 17.5%
12.4%
2.3
2.9
Washington, DC 20.4%
14.9%
2.7
3.5
Miami 18.9%
13.5%
2.5
3.2
Atlanta 17.3%
8.1%
2.2
1.9
Boston 27.0%
19.0%
3.5
4.5
San Francisco 38.0%
28.8%
4.9
6.8
Detroit 15.8%
6.5%
2.1
1.5
Riverside 23.1%
14.9%
3.0
3.5
Phoenix 20.1%
12.7%
2.6
3.0
Seattle 25.0%
17.2%
3.3
4.1
Minneapolis-St. Paul 18.3%
11.2%
2.4
2.6
San Diego 31.3%
25.0%
4.1
5.9
Tampa, FL 17.5%
10.4%
2.3
2.5
St. Louis 15.6%
10.0%
2.0
2.4
Baltimore 19.5%
13.6%
2.5
3.2
Denver 20.2%
15.7%
2.6
3.7
Pittsburgh 14.3%
9.7%
1.9
2.3
Portland, OR 21.3%
17.3%
2.8
4.1
Sacramento, CA 25.9%
15.8%
3.4
3.7
Orlando, FL 18.5%
10.7%
2.4
2.5
Cincinnati 18.0%
9.6%
2.3
2.3
Cleveland 18.7%
9.7%
2.5
2.3
Las Vegas 21.7%
10.2%
2.8
2.4
San Jose, CA 35.2%
29.5%
4.6
7.0
Columbus, OH 17.5%
9.9%
2.3
2.3
Charlotte, NC 16.2%
10.9%
2.1
2.6
Reputation Is Everything
The way you talk to others, how you dress, and your opinions on different matters, your manners, everything about you determine the picture you paint about you and your business reputation. A combination of your morals and other traits that you have, show others what kind of person you are.
It’s your way of create a yard sale sign online that speaks volumes about you. Your online reputation allows others to create their own opinion of who they think you are and in turn they may share their opinion on social media.
What does “Online Reputation” Mean?
Everything you do and say online has an impact on your reputation as a person and as a business owner. With your target customers using the internet daily, it is important that the message you communicate is positive and helpful. When someone wants to know more about you or about your business, they may search for information via a search engine like Google or other place on the internet that may host information. Learning how to manage your online reputation, can help your business grow as well as protect you in the long run.
How Important is Managing Your “Online Reputation”?
As a person and a business owner, it’s crucial to manage your online reputation. People want to know they can count on you and trust you. Creating a good presence online will enhance you and your business; it will gain you respect and recognition. That can also draw business your way when you have a positive reputation. You need to keep the good presence going to ensure your online reputation stays positive.
What Tools and Apps Can You Use To Manage Your “Online Reputation?
In creating a good presence and maintaining it, you have to manage how the internet world perceives you. All it takes is one negative post or a few negative comments to begin to ruin the positive presence you have built. There are tools and apps out there and things you can do to manage and maintain your online reputation.
- Write good content regularly – doing so will keep the positive presence up pushing negative feedback farther down in the search engines
- Use Deleteme Mobile App – this is designed to protect personal information from data tracking, data collecting, etc.
- Use social media management tool to monitor presence – you can use tools such at Hootsuite, Sprout Social, or Onlywire to monitor your presence. These tools can provide statistics and information about the characteristic of your target customers.
A unique way for you to use Google search is the Google Me on The Web feature which is part of the Google Dashboard. It allows you to set up search monitoring for your name/your business, helps you remove negative content, etc. See the image below for more details or click here to visit your Google Dashboard if you have a Google account. The links below do not work in the image. To find out more about the links, visit your Google Dashboard.
Online Resources:
Below are a few resources that may provide you additional opportunities to learn more about online reputation.
Author: Kim Beasley Kim Beasley on the Web Kim Beasley on Facebook Kim Beasley on Twitter Kim Beasley on LinkedIn Kim Beasley on Google Plus Kim Beasley RSS Feed
Kim Beasley specializes in coaching business owners to grow their visibility online using social media and their website (WordPress). Her focus is to teach owners how to raise their Engagement Factor while using such social media as Google+, Facebook, Twitter, LinkedIn, YouTube, or Pinterest to name a few. The Engagement… View full profile
This article originally appeared on Kim Beasley and has been republished with permission.
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