Tag Archives: Bedford Real Estate for Sale

Builder Confidence Holds Firm | Bedford Real Estate

Builder confidence in the market for newly-built single-family homes remained on firm ground in January, down two points to a level of 67 from a downwardly revised December reading of 69 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI).

The solid reading is consistent with building expectations heading into the new year. NAHB expects 10 percent growth in single-family construction in 2017, adding to the gains of 2016. However, ongoing industry concerns include rising mortgage interest rates as well as a lack of lots and access to labor.

The HMI rose sharply in December as the election results raised hopes among builders that a new Congress and administration will help create a better business climate for small businesses, particularly with respect to improving regulatory costs, which increased more than 29% over the last five years.

Derived from a monthly survey that NAHB has been conducting for 30 years, the NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

All three HMI components retreated in January. The component gauging current sales conditions fell three points to 72, the index charting sales expectations in the next six months registered a two-point decline to 76 and the component measuring buyer traffic edged one-point lower to 51.

Looking at the three-month moving averages for regional HMI scores, the Northeast rose two points to 52 and the Midwest posted a three-point gain to 64. The South and West each held steady at 67 and 79, respectively.

 

read more…

http://eyeonhousing.org/2017/01/builder-confidence-holds-firm-in-january-2/

Mortgage rates average 4.30% | Bedford Real Estate

Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates moving higher for the eighth consecutive week.

News Facts

  • 30-year fixed-rate mortgage (FRM) averaged 4.30 percent with an average 0.5 point for the week ending December 22, 2016, up from last week when it averaged 4.16 percent. A year ago at this time, the 30-year FRM averaged 3.96 percent.

  • 15-year FRM this week averaged 3.52 percent with an average 0.5 point, up from last week when it averaged 3.37 percent. A year ago at this time, the 15-year FRM averaged 3.22 percent.

  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.32 percent this week with an average 0.4 point, up from last week when it averaged 3.19 percent. A year ago, the 5-year ARM averaged 3.06 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 link for the Definitions. Borrowers may still pay closing costs which are not included in the survey.

Quote
Attributed to Sean Becketti, chief economist, Freddie Mac.

“A week after the only rate hike of 2016, the mortgage industry digested the Fed’s decision and this week’s survey reflects that response. Following Yellen’s speech last Wednesday, the 10-year Treasury yield rose approximately 10 basis points. The 30-year mortgage rate rose 14 basis points to 4.30 percent, reaching highs we have not seen since April 2014.”

Non-Mortgage Consumer Debt Accelerates | Bedford Real Estate

The Federal Reserve Board reported that consumer credit outstanding grew by a seasonally adjusted annual rate of 7.0% over the third quarter of 2016, 0.6 percentage point faster than the 6.4% rate of growth in the second quarter. There is now $3.71 trillion in outstanding consumer credit.

presentation15

Growth in the outstanding amount of consumer credit overall reflected an increase in both revolving and non-revolving credit. Revolving credit is largely composed of credit card debt while non-revolving credit includes both student and auto loans. Over the third quarter, revolving credit rose by 7.6% and now totals $2.73 trillion while non-revolving credit climbed 5.2% reaching $979 billion.

Growth in consumer credit has been accelerating on a quarter-over-quarter basis in 2016. According to Figure 1, since falling to 5.6% growth in the first quarter of 2016, each subsequent quarter has experienced a faster rate of growth. In the second quarter of 2016, growth rates of both revolving and non-revolving credit recorded higher rates of growth relative to the first. However, in the third quarter, growth in non-revolving credit accelerated again while the growth of revolving credit decelerated.

presentation17

Information from the most recent iteration of the Federal Reserve Board’s Senior Loan Officer Opinion Survey (SLOOS) provides some insight into the slowdown in the growth of revolving credit over the quarter. The SLOOS, among other questions, asks banks, who are the largest holder of revolving credit debt, about the supply and demand for credit card debt. In the most recent iteration, the SLOOS also asked about the likelihood of a respondent’s bank approving an application for a credit card to a borrower with a given FICO score now relative to 3 months ago. The FICO score options were 620, 680, and 720 and all other borrower characteristics were to remain “typical”*.

Figure 2 above depicts the results from the SLOOS. The “Net” is the difference between the percentage of banks reporting that they were “More likely” now than 3 months ago to approve the credit card application and the proportion of banks that were “Less likely” to do so. On net, banks were less likely to approve a credit card application for a prospective borrower with a FICO score of 620 and were more likely on net to approve an application for prospective borrower with a FICO score of 720. At a FICO score of 680 banks were neutral on net, the same portion of banks reported both more likely and less likely to approve a credit card application for a borrower with that credit score.

 

read more…

 

http://eyeonhousing.org/2016/11/non-mortgage-consumer-debt-accelerates/

Relief from soaring home prices isn’t coming anytime soon | Bedford Real Estate

The US housing market is supply constrained, sending home prices in major US metros back to levels last seen in the winter of 2007.

Research out of JP Morgan published Thursday indicates that this situation appears unlikely to resolve itself anytime soon.

“Nationwide house price indexes have been pushing steadily higher—real house prices are now 25% above their 2012 trough and at the highest levels on record outside the pre-crisis boom years,” JP Morgan’s Jesse Edgerton writes.

“One might wonder if these high prices reflect growing demand that could soon elicit a wave of construction that would prove our forecasts wrong. We find, however, that high prices are concentrated in markets where supply is constrained by geography or regulation, suggesting there may be little room for additional construction.” (Emphasis added.)

In short, areas seeing home prices rise fastest — think San Francisco, San Jose, and Denver — are not in a position to meet the demand for housing implied by the rise in prices.

The problem here is two-fold.

As the chart below shows, high home prices haven’t influenced the aggressiveness with which homebuilders have added to the housing stock over time. This indicates the supply side of the market is content to accept elevated prices even if the volume of homes built and sold is below what the demand side alone might dictate.

View photos

Additionally, Edgerton’s work shows that markets equipped with both high home prices and an ability to meet the demand implied by these prices literally do not exist.

“Metro areas in the upper right quadrant of the chart would be the best candidates for a demand-driven construction boom,” Edgerton writes. “Unfortunately, sharp-eyed readers will note that there are no dots in the upper-right portion of the figure.”

View photos

Edgerton adds, “Thus, it is unclear how much we can expect high prices to drive construction in the coming years, as the data show that high prices are concentrated in areas where supply may be limited in its ability to respond to demand.”

Data out this week from S&P/Case-Shiller showed home prices rose 5.3% nationally in August, up from a 5% annual gain seen the prior month.

A report from the National Association of Realtors last week showed a 5.6% increase in median existing home prices, the 55th straight month of year-on-year gains. At the current pace of existing home sales, there exists just 4.5-months’ supply in the US market.

“Inventory has been extremely tight all year and is unlikely to improve now that the seasonal decline in listings is about to kick in,” chief economist for the National Association of Realtors Lawrence Yun said in a report.

read more…

http://finance.yahoo.com/news/relief-from-soaring-home-prices-isnt-coming-anytime-soon-174136415.html?_fsig=arxQ.NYjpRCtxgAPQstl9A–

Existing home sales rise | Bedford Real Estate

Existing home sales, as reported by the National Association of Realtors (NAR), increased 2.0% in October and reached the highest pace since February 2007. In October sales increased for the second straight month, and were up 5.9% from the same month a year ago. Total existing home sales in October increased to a seasonally adjusted rate of 5.60 million units combined for single-family homes, townhomes, condominiums and co-ops, up from an upwardly adjusted 5.49 million units in September.

existing-sales-october-2016

October existing sales increased in all four regions, ranging from 2.8% in the South to 0.8% in the West. Year-over-year, October sales also increased in all regions, ranging from 10.4% in the West to 1.4% in the Northeast.

Total housing inventory decreased slightly by 0.5% in October, and remains 4.3% lower than its level a year ago. At the current sales rate, the October unsold inventory represents a 4.3-month supply, compared to a 4.4-month supply in September.

The October all-cash sales share increased to 22% from 21% in September, but was down from 24% one year ago. Individual investors purchased a 13% share in October, down from 14% in September and unchanged from a year ago. The first-time home buyer share was 33% in October, down a point from the solid September report, but above the first-time buyer share of 31% in October 2015. Distressed sales, comprised of foreclosures and short sales, increased to 5% in October from 4% in September, which was the lowest rate since NAR launched that series in 2008.

The October median sales price of $232,200 was 6.0% above the same month a year ago, and represents the 56th consecutive month of year-over-year increases. The median condominium/co-op price dropped for the fourth consecutive month to $220,300 in October, but was up 6.2% from the same month a year ago.

 

read more…

 

http://eyeonhousing.org/2016/11/existing-sales-revival/

San Jose to tackle homelessness with tiny houses | Bedford Real Estate

Homeless person in San Jose, California

Sprawling and largely suburban in character, San Jose — highly affluent de facto capital of California’s Silicon Valley — is home to one of the nation’s most well-educated, socially progressive, ethnically diverse and highest paid populaces. It’s also blessed with beautiful weather, a fabulous park system and a low crime rate for a city of its size. Everything is hunky-dory, all sunshine and Dionne Warwick songs, in the well-heeled epicenter of America’s busiest tech hub.

Except that it’s not.

Like its (technically smaller) neighbor to the north, San Francisco, the third most populous city in California struggles with exorbitant housing costs, severe income inequality and a homelessness crisis that shows no signs of abating.

Yes, there are homeless people in the Silicon Valley. And way more than you might imagine.

As reported by the Mercury News citing 2014 statistics released by the U.S Department of Housing and Urban Development, San Jose and greater Santa Clara County have the fourth largest homeless population in the United States. With an estimated 4,063 homeless residents, San Jose has the nation’s third largest population of chronically homeless residents and the nation’s fifth largest population of homeless veterans.

In total, 69 percent of San Jose’s homeless population are living on the streets, in cars, in abandoned buildings and in encampments. One such encampment, “The Jungle,” was one of the largest — if not the largest — homeless camps in the nation until it was cleared out in 2014. The site has since been reclaimed by nature and other, smaller settlements have popped up around the city’s secluded wooded areas along creeks and riverbeds. In lieu of overcrowded shelters or encampments, many of the Silicon Valley’s homeless sleep aboard the 22 Bus, the only 24-hour bus line in Santa Clara County.

Never a city to shy away from innovation and outside-the-box thinking, San Jose is now turning to the tiny house movement to give shelter — even if just temporarily — to those who most desperately need it.

San Jose skyline)

Crisis mode meets creative thinking

A new piece of legislation authored by Assemblywoman Nora Campos and signed into law by California Gov. Jerry Brown on Sept. 27 would allow San Jose to circumvent statewide building, health and safety codes that would otherwise impede the creation of garden shed-sized standalone dwellings. In lieu of abiding by state regulations, city officials will adopt their own unique set of building regulations that enable the construction and distribution of homeless-geared tiny houses.

The law, which will be valid for five years at which point its impact will be assessed, can only be enacted if San Jose declares a “shelter crisis” — and it already has.

When the law goes into effect in January of next year, San Jose will be the first city in California to officially embrace tiny houses as a means of combating homelessness.

Speaking to the Mercury News, Ray Bramson, the city’s homeless response manager, notes that the tiny houses, so en vogue with middle-class downsizers and flexibility-seeking Millenials, would serve as a sort of “temporary stopping point” while the city constructs 500 affordable apartment units over the next several years.

“This law really is the first of its kind,” Bramson tells the Mercury News. “It will allow us to create bridge housing opportunities — a stable place people can live and stay while they’re waiting to be placed in a permanent home.”

The Jungle, San Jose

Tiny houses with a big impact

San Jose will soon launch a competition seeking designs for the diminutive housing units. The emphasis, according to the Mercury News, will be on “innovative features, cost effectiveness and replicability.”

The legislation, Assembly Bill 2176, dictates that single-person “emergency shelter cabins” must measure at least 70 square feet while standalone shelters for couple must be no less than 120 square feet. Each unit must be insulated, wired for electricity, include at least one lighting fixture and be topped with a weatherproofed roof. And this is a biggie: Each tiny house must also include a privacy lock.

Tiny houses, often bespoke and kitted out with high-tech bells and whistles, are generally in the 200 to 300-square-feet range in a non-transitional housing context. So, yes, 70 square feet is on the extremely petite side for a tiny house.

As for location, it would appear that San Jose is following in the footsteps of cities such as Austin, Texas, and Olympia, Washington, by establishing transitional micro-housing villages. Although sites have not been selected — and this may prove to be tricky part — the new law states that the tiny houses must be placed on city-owned or leased land no less than a half-acre. Each cluster of tiny houses, referred to in the bill as “emergency bridge housing communities,” would include on-site supportive services and bathroom facilities.

“It was huge for the governor to sign this because it’s outside-the-box and no one else has done it,” Assemblywoman Campos announced in a statement. “Other big cities like San Francisco and Los Angeles will be looking at what we do here. We had to do something because what we were doing wasn’t working.

It’s interesting that Campos mentions Los Angeles, a city where officials have yet to embrace the concept of tiny houses for the homeless but where private citizens have.

Such is the case of Elvis Summers, a power drill-wielding mohawked Angeleno that, in the absence of action from city officials, stepped up and decided to do something for his neighbors living on the streets of South L.A.

In 2015, Summers and a team of volunteers began constructing dozens of tiny houses, each costing about $1,200 to build. For financing, Summers launched a successful crowdfunding campaign that raised big bucks and garnered international media attention.

However, not long after the recipients of Summers’ hand-built micro-shelters began to get accustomed to sleeping with honest to goodness roofs over the heads, L.A. sanitation workers, under orders from City Hall, began an aggressive crackdown on the structures. While some were saved by Summers and temporarily moved to private property, others were impounded by the city.

read more…

http://www.mnn.com/your-home/remodeling-design/blogs/san-jose-tackle-homelessness-tiny-houses

Mortgage rates average 3.57% | Bedford Real Estate

Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates moving higher.

News Facts

  • 30-year fixed-rate mortgage (FRM) averaged 3.57 percent with an average 0.5 point for the week ending November 10, 2016, up from last week when it averaged 3.54 percent. A year ago at this time, the 30-year FRM averaged 3.98 percent.
  • 15-year FRM this week averaged 2.88 percent with an average 0.5 point, up from last week when it averaged 2.84 percent. A year ago at this time, the 15-year FRM averaged 3.20 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 link for the Definitions. Borrowers may still pay closing costs which are not included in the survey.

Quote
Attributed to Sean Becketti, chief economist, Freddie Mac.

“This week’s survey reflects pre-election market conditions. As a result, the 30-year mortgage rate increased to 3.57 percent, only 3 basis points higher than last week’s level. On Wednesday, the 10-year Treasury yield closed above 2 percent, about 25 basis points higher than its pre-election value and its highest yield since January. At this point, it is too soon to tell whether Treasuries will hold this new level or if the mortgage rate will increase as much over the coming week.”

Manhattan sales down 15.3% YOY | Bedford Real Estate

Manhattan

The Manhattan apartment market saw its lowest total sales figures since 2011 during the third quarter, which is usually the busiest part of the year. And many brokers said that uncertainty over the presidential election doesn’t bode well for a turnaround.

The number of co-op and condominium sales in the borough fell 15.3 percent from the same quarter in 2015, the Wall Street Journal reported, citing New York City Department of Finance data.

Sales of co-ops fell notably 17.5 percent, and those of lower-priced apartments below the $1 million price point dropped off 22.2 percent. Market experts said a lack of supply was to blame for the slowdown on the lower end of the market.

This was the slowest three months since the third quarter of 2011 when the market was still recovering from the financial crisis.

Brown Harris Stevens  president Hall Willkie said the market takes a hit every four years during a national election, but this year is particularly notable.

“It is a much more polarizing event,” he said. “Both sides have dire predictions of what will happen if the other side wins.”

Wilkie said he doesn’t expect the market to recover at least until the holiday season at the end of the year.

Median prices for Manhattan apartments were up 10.5 percent from the third quarter of 2015, but down from peak prices earlier this year.

On Friday, The Real Deal reported that the target offering price of new condos approved for sale in New York City is down 34.4 percent year-over-year, despite only a small decline in the number of offered apartments

read more…

 

http://therealdeal.com/2016/10/03/manhattan-resi-sales-down-15-3-yoy/?utm_source=The+Real+Deal+E-Lerts&utm_campaign=9edfdea9c9-NY_DAILY_05_06_20165_6_2016&utm_medium=email&utm_term=0_6e806bb87a-9edfdea9c9-385733629

 

Longaberger Basket Building heading to foreclosure | Bedford Real Estate

Longaberger basket building

Cushman & Wakefield

The Longaberger Basket Building, the Newark, OH, office structure built to resemble a giant picnic basket, is heading to foreclosure if the home goods company does not pay more than $600,000 in back property taxes.

Olivia Parkinson, the Licking County treasurer, tells realtor.com® that the county recently sent a letter informing Longaberger that it is referring the property for tax foreclosure. The company, which hasn’t made a tax payment since November 2014, owes $605,219.12.

In order to halt foreclosure proceedings and an eventual property auction, the company must pay the bill in full within two weeks, Parkinson says.

The one-of-a-kind property has lingered on the market for 18 months. Brenton Baker, a spokesman for the Longaberger Company, says serious negotiations are underway with “several entities” who’d like to pack their employees into the basket building.

The basket backstory

It’s been tough to find a buyer for the 180,000-square-foot building in a suburb of Columbus. The basket landed on the market for $7.5 million about a year and a half ago, and the price has since been slashed to $5 million. The current asking price works out to about $27 per square foot, roughly half of what area office space—that doesn’t look like bologna sandwich storage—typically commands.

Inside Longaberger building
Inside the Longaberger building

Cushman & Wakefield

“It’s a very unique property, and I don’t know that there are a lot of basket-related businesses out there,” says Baker. “The inside is a very nice, high-end office space. But the outside does present certain challenges.”

Longaberger, which sells baskets through a national network of Tupperware-style home consultants and is now owned by JRJR Networks, completed the office building in 1997 at a cost of approximately $32 million. It was the brainchild and dream project of the company’s founder, Dave Longaberger, who wanted his headquarters to mimic his best-selling basket.

Initially, the project’s architects thought he was speaking conceptually. But after the third failed design, Longaberger grabbed one of his baskets, slammed it on the table, and said, “Make it look exactly like this.”

And so they did, handles and all.

The exterior consists of stucco-covered framed metal set in a basket weave pattern. Two 75-ton handles heated to prevent ice from forming grace the top of the basket, and two 725-pound gold leaf Longaberger tags adorn the sides. The interior contains a 30,000-square-foot atrium and a 142-seat auditorium, where employees used to gather for movie night.

“It was a great home for us for many, many years,” says Baker, who’s worked for the company for 25 years. The final employees emptied out of the basket in July.

It also was a tourist destination. TripAdvisor, which calls the building “World’s Largest Basket,” ranks it No. 6 out of 19 things to do if you happen to be in Newark. The Dawes Arboretum is No. 1.

“It did bring people to the area when it was new,” says Jennifer McDonald, vice president of Licking County Chamber of Commerce, which includes Newark businesses. “They’d make a stop because of the size of the building and the photo opportunity.”

Unpacking the basket’s fate

But after Dave Longaberger died in 1999, tastes in home décor changed and sales slumped. The company’s revenue shrank from $1 billion in sales in 2000 to about $100 million in 2014. In fall 2014, the company was nipping away at the back taxes it owed, paying $10,000 per week for eight weeks, says Parkinson. But the payments stopped in November 2014.

Those delinquent taxes are “the scary part” for prospective buyers, says McDonald. “Heating and cooling costs must be phenomenal. Plus, it looks like a basket.” A basket in need of a paint job, according to a TripAdvisor comment posted in August.

 

read more…

 

http://www.realtor.com/news/trends/longaberger-basket-building-foreclosure/?is_wp_site=1