Daily Archives: January 16, 2014

Is housing bubbly? There is a lot going on | South Salem NY Homes

 

There is a lot going on right now in housing and mortgage markets. But one of the debates that continues to rage on is whether U.S. housing markets are in a bubble or not.

HousingWire’s own monthly HW Magazine talked about it in detail in our January issue.

So too has CNBC’s John Carney, in a post from late last year with the headline: Yep, it’s another housing bubble. And then on January 14 of this year, Peter Wallison at the American Enterprise Institute wrote a breathless op-ed proclaiming: The bubble is back.

But is it really a bubble just because home prices are rising again?

They say a picture is worth a thousand words, and this chart published today by rating agency DBRS in their annual overview of the RMBS market for 2014 suggests that anyone claiming a new housing bubble is simply ignoring the most basic housing fundamental of them all: nominal home prices.

Most markets haven’t yet reached their pricing level highs from the previous cycle, with the exception of two markets that saw the least amount of decline.

Those who want us to think there is a bubble cite the relationship between home prices and rental rates; or look at some calculated measure of affordability. And when those are out of whack, they say it’s a bubble.

But it could be that rental rates are themselves out of whack, not housing prices. And it could be that other variables are affecting affordability rather than just prices, too. Supply and demand factors can do funny things to ratios, all of which need to be read in context.

No analysis should ignore market fundamentals, should it? Can we really be building another housing bubble if home prices in almost every U.S. market right now haven’t even surpassed levels they once were at — even after the strong price rebound we’ve already seen in the previous year?

After five years of a housing economy that has been either horrible or just plain bad, it’s difficult to believe that one good year somehow suddenly puts the nation’s housing markets back into the bubble.

 

 

http://www.housingwire.com/blogs/1-rewired/post/28599-the-most-important-chart-in-housing-right-now

Buyers want a photo-driven search experience | Cross River Real Estate

 

Upwards of 80 percent of buyers want to see property photos first when searching for a home, according to Robyn Woodman, a real estate broker and head of business development at Portland, Ore.-based real estate startup Househappy.

Househappy, a participant in Startup Alley at Real Estate Connect New York City, was founded in 2011 by Kevin McCloskey, a real estate broker with 27 years’ experience in the business.

The startup launched its visually based search site in March 2013. Househappy.org is free for consumers, agents and brokers, and McCloskey has vowed it will remain so. He plans to monetize the site with advertising from home services and other merchants near properties. Listing agents or brokers are posted directly on a listing page with no competing advertising from other agents.

The site obtains its listings from broker data feeds and manual uploads from listing agents or brokers. A deal with a major listing syndicator is also in the works.

Househappy recently raised $1.5 million in a funding round lead by Skechers exec Jeff Greenberg. That funding was on top of $1 million in seed funding previously raised from angel investors.

– See more at: http://www.inman.com/2014/01/15/buyers-want-a-photo-driven-search-experience/?utm_source=20140116&utm_medium=email&utm_campaign=dailyheadlinesam#sthash.S2Yc3QBi.dpuf

‘Pay for what agents value, unless they’re wrong’ | Chappaqua NY Real Estate

 

Joseph “Joe” Rand has what he says is one “golden rule” to profitability, at least when it comes to expenses: Pay as little as possible, only for what your agents really value, and pay for nothing else — unless they’re wrong.

Rand is managing partner at Better Homes and Gardens Real Estate Rand Realty in the New York metro area. Last year, the firm generated about $45 million in revenue, Rand said.

He spoke to a roomful of his colleagues at Real Estate Connect New York City today in a session called “Survival War Room for Brokers.”

“If your business model is aligned with what your agents value, you’ll be just fine. It really depends on you being a good operator and executing on that,” Rand said.

But ”sometimes there’s a disconnect between what agents want and what they should want,” he added.

For instance, his brokerage used to pay for personal assistants for their most successful agents. But then the industry changed and the agents didn’t need those assistants as much, so the firm allowed the agents to spend that money on marketing.

 

 

– See more at: http://www.inman.com/2014/01/15/the-golden-rule-to-profitability-for-brokers/?utm_source=20140116&utm_medium=email&utm_campaign=dailyheadlinesam#sthash.Gw830cZN.dpuf

This Grand, Flowery Remsen Street Brownstone Wants $6.2M | Bedford Corners Homes

 

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This new-to-market townhouse is pretty Old World, so if you’re into marbleized fireplaces, molding that doesn’t confine itself to the perimeter of the ceiling, flowery stenciled wall decoration, and elegant chandeliers, you’re in luck. The Italianate, 25-foot-wide facade of 37 Remsen Street hides a 7,000-square-foot single-family mansion, with eight bedrooms and 8.5 baths. “This regal residence possesses all the charm of yesteryear with updated mechanicals/systems throughout,” goes the brokerbabble, perhaps in an attempt to justify its asking price: $6,200,000. There’s an outdoor space off the cheery yellow kitchen, as well as a garden. The cellar level comes renovated, too, with eight-foot-high ceilings, a gym, laundry room, and a full bathroom. There’s space for a media room or wine cellar. Those too-chintzy details can always be painted over, right?

 

 

http://ny.curbed.com/archives/2014/01/15/this_grand_flowery_remsen_street_brownstone_wants_62m.php

Perfectly Staged Florida Bayfront Mansion Asks $16.9M | Pound Ridge NY Homes

 

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Location: Osprey, Fla. Price: $16,900,000 The Skinny: Consider, for a moment, the staged perfection of listing photos: coming home to a house that’s been meticulously polished to its Platonic ideal as this one has must be like arriving at your front door only to find that your grandmother’s front sitting room, with its strictly off–limits knick-knacks and vacuum-sealed sofas, is now every room in your house. Do you dare muss the taut bedclothes, or move the towel that’s so artfully draped over the edge of your tub (as if someone just happened to casually lay it down in the most picturesque way possible)? Is it permissible to flop down in your favorite easy chair, or will your weight irreparably deform its perfectly fluffed, better-than-new, cushions? And as for making a crumbly peanut butter and jelly sandwich in the sterile operating theater standing in for the kitchen—well, no. All chin-stroking aside, this four-bedroom, eight-bathroom bayfront home, which the listing thoughtfully assures us is “architect-designed”, is asking $16.9M.

 

 

http://curbed.com/archives/2014/01/15/perfectly-staged-florida-bayfront-mansion-asks-169m.php

Westchester’s Astorino Says He’s ‘Leaning Toward’ Running For Governor | Bedford NY Real Estate

 

Westchester County Executive Robert Astorino still hasn’t made a firm decision about running for Governor this year, but made a strong indication that he would during a radio interview on Wednesday, Jan. 14, according to the Democrat and Chronicle.

During the interview, Astorino divulged that he is “leaning toward” challenging Gov. Andrew Cuomo. This marks a change from last week, when the county executive claimed he was “50/50” on a gubernatorial run, the Democrat and Chronicle reported.

Click here to read the full article.

Spike In Westchester Home Sales Is Good For Buyers And Sellers | Chappaqua NY Homes

 

Westchester home sales increased 21 percent in 2013 over the previous year, which has created a great environment for sellers, said Diane Cummins, president of the Hudson Gateway Association of Realtors (HGAR).

The White Plains-based group released its 2013 year-end home sales report this week. It showed 13,781 total sales in its coverage area, which includes Westchester, Putnam, Orange and Rockland counties. This is the highest number of sales since 2007, according to the report.

Among the four counties, Westchester only trailed Orange in increased sales over 2012.

“I think we’ve turned the corner,” Cummins said. “I think these numbers demonstrate a consistent growth pattern.”

Sales really picked up in the second and third quarters of the year. They slowed down somewhat in the fourth quarter, which is typical due to the weather and holidays, Cummins said. However, fourth quarter sales in 2013 were up 16 percent over 2012 and 34 percent over 2011, according to Joe Rand, managing partner of Better Homes and Gardens.

“That finished a really strong year. Sales came back in a really big way in 2013,” he said in a video.

With two years of increased home sales, prices are starting to follow, which Rand said usually trails home sales by one-to-two years.

 

http://chappaqua.dailyvoice.com/real-estate/spike-westchester-home-sales-good-buyers-and-sellers

Fixed Mortgage Rates Move Lower on Economic Data | Bedford Hills Homes

 

Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates fall amid signs of a weakening economic recovery.

News Facts

  • 30-year fixed-rate mortgage (FRM) averaged 4.41 percent with an average 0.7 point for the week ending January 16, 2014, down from last week when it averaged 4.51 percent. A year ago at this time, the 30-year FRM averaged 3.38 percent.
  • 15-year FRM this week averaged 3.45 percent with an average 0.7 point, down from last week when it averaged 3.56 percent. A year ago at this time, the 15-year FRM averaged 2.66 percent.
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.10 percent this week with an average 0.5 point, down from last week when it averaged 3.15 percent. A year ago, the 5-year ARM averaged 2.67 percent.
  • 1-year Treasury-indexed ARM averaged 2.56 percent this week with an average 0.5 point, unchanged from last week. At this time last year, the 1-year ARM averaged 2.57 percent.

Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following links for the Regional and National Mortgage Rate Details and Definitions. Borrowers may still pay closing costs which are not included in the survey.

Quotes Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac.

“Mortgage rates drifted downward this week amid signs of a weakening economic recovery. The economy added 74,000 jobs in December, less than the market consensus forecast. Retail sales rose 0.2 percent in December, which was nearly half of November’s 0.4 percent increase. Meanwhile, the unemployment rate fell to 6.7 percent which was the lowest since October 2008.”