Daily Archives: November 24, 2014

10 Advantages of the Humble Ranch House | Armonk Homes

Since falling from favor in the 1970s, the ranch house has languished on the bottom rung of the architectural food chain. Critics deride its small size, dated finishes and prosaic design. But if you’re able to see past such shortcomings, the ranch (or rambler, as it’s sometimes known) has a lot to offer potential home buyers — particularly those on a budget.

Popularized in the 1950s by architectural designer and developer Cliff May, the ranch celebrated the postwar profusion of cheap land and sprawling suburbs, with a horizontal footprint that turned its back on the streetscape to focus on backyard living.

While May’s original designs showed great finesse, the ranch was copied so often — and so poorly — that eventually the style became associated with cheap tract-house living. Which is a shame, because ranch houses can be an affordable, efficient option that’s compatible with today’s lifestyles and needs.Below you’ll find some of their advantages, along with ideas for working with ranch homes.

College Towns Get an A for Appreciation | Bedford Hills Real Estate

Colleges and universities are having an effect on housing across the country. Metros with noteworthy university influence are at the top of their class, with home price trends far outperforming national rates of growth since 2004, according to data provider Clear Capital.

A sample of ten metros, each having a university presence, shows an average growth of 32 percent since 2004.

Sustained gains at the MSA-level are a direct benefit of metros with heavy college influences. The Ithaca MSA, home to Cornell University and Ithaca College, has seen home prices rise 51 percent since 2004, putting the metro at the head of the class nationally. And it’s not just metros in the Eastern Region seeing college pay off. In Boulder, home to the University of Colorado, home prices are up 26 percent since 2004. These markets each maintain a foundation of sustained demand from students hungry for an education and in need of a roof over their heads.

Even larger MSAs with a heavy academic focus, like Boston, are seeing strong micro market growth. Cambridge housing demand from students attending Harvard University has helped fuel price growth of 39 percent over the last decade. The University’s ZIP code 02183 has outperformed the Boston MSA by 36 percent since 2004, highlighting the noteworthy influence of academia on local home prices. There’s no question that the many universities within this area, including MIT, contribute to the unique demand in the Cambridge, MA ZIP code and surrounding areas.

Metros majoring in university life are at the head of their class, but student debt could create a drag on the overall housing recovery. Now a full year into a cooling recovery, stronger demand from first-time homebuyers is a prerequisite to a sustainable recovery as investor demand dwindles. College graduates who feel confident enough in their employment prospects and the housing market to attempt to qualify for a mortgage will have to grapple with an average of more than $30,000 in existing student debt. With student debt now in excess of $1 trillion and growing, the housing market faces demand headwinds at a crucial transitional point in the recovery.

“College towns are just another example of how real estate trends are impacted by local market conditions” said Dr. Alex Villacorta, vice president of research and analytics at Clear Capital. “It’s clear a significant portion of loan dollars are going towards student housing costs, thereby creating a critical demand surge. Healthy student populations activate a positive feedback loop where housing fuels local economies and jobs which increase the overall confidence and demand in these towns. Concerns over rising student debt and recent college graduates’ ability and desire to qualify for a home loan could certainly create a drag on the recovery overall as the next phase depends on re-engagement by traditional homebuyers. Generally, investment opportunity in college markets yield benefits that ripple beyond localized home price strength since higher education typically begets higher income which has allowed more folks to invest in the American Dream. While this is still true today, the struggle between rising student debt and a first-time homebuyer’s desire and ability to qualify for a mortgage will pose an interesting challenge for the future of the recovery.

 

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http://www.realestateeconomywatch.com/2014/11/college-towns-get-an-a-for-appreciation/

 

 

New Mortgages Sank This Year | Pound Ridge Real Estate

Mortgage originations are down by 39 percent so far in 2014, with one in 79 households securing a new mortgage (compared with one in 48 in 2013), according to the Experian credit reporting service.

However, credit scores and card lending both experienced more positive signs of growth since 2013. While these categories are showing upward growth, fewer people have opened a new mortgage in the past year.

Other findings from Experian’s Fifth Annual State of Credit Study:

•The national VantageScore® credit score1 is up by two points, from 664 to 666
•Bankcard lending is on the rise, with new bankcards up 21.1 percent, with one in 17 consumers opening at least one bankcard (compared with one in 21 consumers in 2013)
•The average number of bankcards per person is up 4.2 percent to 2.18 cards
•Retail card lending also is on the upswing with a 3.5 percent increase
•The average number of retail cards is up 6.7 percent to 1.54 cards per consumer
•Average debt2 is up 2.3 percent to $28,496 per person

“This has been a notable year for borrowing, with more new credit being extended and consumers feeling more comfortable and confident about accepting those credit offers,” said Michele Raneri, vice president of analytics, Experian. “Even with some categories like mortgage taking longer to bounce back, an early glimpse at our third-quarter data indicates that an upward trend may be on the horizon.”

The study not only examined the national credit picture, but also looked at more than 100 Metropolitan Statistical Areas (MSAs) across the country and compared their credit scores with one another to see how they are faring. Topping the list with an average credit score of 706 are the residents of Mankato, Minn., followed by three other Minneapolis cities securing top spots. The city in need of the most improvement is Greenwood, Miss., with the lowest credit score of 609. The full list of the top 10 and bottom 10 cities are featured below. Scores are rounded to the nearest whole number.

 

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http://www.realestateeconomywatch.com/2014/11/new-mortgages-sank-this-year/

 

Flippers Flop Back Five Years | Bedford Real Estate

Flipping has flopped to its lowest level since the second quarter of 2009, accounting for only 4 percent of all sales in the third quarter.

Only 26,947 single family homes were flipped nationwide in the third quarter of 2014 representing 4 percent of all U.S. single family home sales, down from 4.6 percent in the second quarter of 2014 and down from 5.6 percent in the third quarter of 2013.  Flipping, defined as purchasing a home is purchased and subsequently selling it again within 12 months –has reached its lowest level in four years.

However, investors’ profit margins soared this year.  Investors averaged a gross profit of $75,990 per flip on homes flipped in the third quarter of 2014, a 36 percent gross return on the initial investment — not including rehab costs and other expenses. The average gross return was up from 35 percent in the second quarter but down from 37 percent a year ago, according to RealtyTrac.

“Flipping returned to its historic norm of 4 percent in the third quarter as home price appreciation cooled in many of the hot flipping markets across the country,” said Daren Blomquist, vice president at RealtyTrac. “Meanwhile, the record-high average profits per flip in the quarter demonstrate that flippers are still filling an important niche in an aging housing market with historically low levels of new homes being built. The most successful flippers are buying older, outdated homes in established neighborhoods and rehabbing them extensively to appeal to modern tastes.

“The markets with an increase in flipping tend to be those with older, distressed, inventory still available that flippers can often buy at a discount and add value to,” Blomquist continued. “Those discounted distressed properties have become harder to find, but a recent jump in scheduled foreclosure auctions could provide more fodder for flippers in the next three to six months.”

Other high-level findings in the report:

Metro areas with the most flips in the third quarter were Miami (1,190 flips), Los Angeles (1,170 flips), Phoenix (1,147 flips), New York (1,070 flips) and Tampa (789 flips). Among these top five, Tampa was the only to post an increase in the share of home flips compared to a year ago.

 

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http://www.realestateeconomywatch.com/2014/11/flippers-flop-back-five-years/

 

 

Purchase Mortgage Approvals Break Record! | Bedford Corners Real Estate

The approval rate for purchase mortgages hit new heights in October as more than two thirds (66.1 percent) of all applications for loans to buy a home were approved.

The approval rate for October was the highest recorded by the four-year old  Ellie Mae Originations Insight report; the previous high was 65.1 percent in August.  Last year the average approval rate for purchase loans was only 60 percent.

The high approval rate suggests borrowers and lenders are finding ways to overcome tight lending standards that are more difficult for lenders to circumvent following implementation of the QM Rule in January.  Tight credit has crippled access to financing for buyers, especially first time buyers, and slowed home sales this year

The October approval rate for conventional loans also hit a new peak at 67.9 percent; its previous top rate was 67.2 percent in January of this year.  The approval rate for all loan types in October was 59.4 percent.  Only 59.4 percent of refis were given the green light.

The average time to close for purchase loans in 0ctober was 40 days.  Purchase loans accounted for 60 percent of all loans closed in

The October 2014 report also found that the average 30-year interest rate for all loans fell for the sixth consecutive month to 4.371 percent purchase loans, reported in Ellie Mae’s October report.

 

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http://www.realestateeconomywatch.com/2014/11/purchase-mortgage-approvals-break-record/