Tag Archives: South Salem NY Realtor

Trump’s infrastructure plan | South Salem Real Estate

One of President Trump’s common refrains on the campaign trail was that he would help rebuild the country’s crumbling infrastructure, leaning on his extensive experience in real estate and development to shepherd forth a plan to cut red tape, move projects forward, and put this country to work.

More than 100 days into his administration, his grand design has yet to take shape, though it’s been a constant source of conversation in D.C. There has been movement over the last few days, with reports saying that the Trump team has solicited bids for potential infrastructure investments from across the country and looks toward releasing a plan in the fall that would steer $200 billion of public money to infrastructure investment.

Curbed spoke to infrastructure experts to get their take on Trump’s nascent plans: what should be included, what to watch for as plans come together, and its chances to clear both houses of Congress and help America get to work.

Watch the numbers

Henry Petroski, a Duke professor and infrastructure expert, says that spending on roads and construction is “like apple pie and motherhood—everybody’s for it.” There’s a lot of talk about some kind of plan, a proposal both candidates supported last year, and representatives and senators will have a tough time voting against it, Petroski says. It’s still taking shape, but based on previous reports and statements from Trump administration officials, it would include a combination of government investment, new funding mechanisms to encourage private investment, and regulatory reform to help accelerate approvals and construction timelines.

That makes it all the more important to watch how funding is allocated. The trillion-dollar proposal the Trump administration is developing sounds like a lot, and it is: The federal government’s annual budget is about $3.8 trillion, including entitlements such as Social Security and Medicaid. Petroski believes the spending will most likely be spread out over 10 years, which means a 100 billion dollars annually, roughly double the amount currently being spent on roads and bridges. Doubling funding is a big deal, but it’s important to put things in perspective.

“We can’t just look at the headlines that say $1 trillion; we need the details,” he says. “This isn’t just an issue with this administration, however. This happens with every administration.”

 Caiaimage/Getty Images

Will states take the lead?

While the Trump administration has promised to have a plan together by this fall, some analysts, such as Petroski, are skeptical. He feels that health care and other priorities may derail infrastructure this year, at least on the federal level.

Federal delays in approving new spending, however, have spurred many cities and states to take action. Federal infrastructure is tagged to the gasoline tax, which hasn’t been raised since 1993 (Trump has flirtedwith the idea of raising it to fund infrastructure spending). But many states have raised their own rates or passed spending measure to fund infrastructure (federal dollars are, on average, only responsible for 25 percent of infrastructure spending, according to Petroski).

“Close to half the states have raised the state gasoline taxes in the last couple of years, and the others are considering it,” he says. “They simply can’t wait for the federal government to do something.”

Will we build green infrastructure?

In addition to how much we’re going to spend on infrastructure, another big question is what we’re going to spend money on. Armando Carbonell, a senior fellow and urban policy expert at the Lincoln Institute, says one of the biggest problems with any Trump infrastructure plan is the administration’s stance on climate change. It’s not just that any potential new construction may ignore public transit and sustainable options that reduce carbon emissions, it’s that not acknowledging a changing climate means money will be misspent.

“We need infrastructure to protect communities from the effects of climate change that can’t be avoided,” he says. “Sea-level rise, flooding, the effects of wildfires; in many cases, there are infrastructure needs that should be a priority, such as protecting coastal cities. If we don’t take climate change into account, we may well build infrastructure that is vulnerable. There are simple things we can do, such as building on higher elevations, that take account of a rising sea level. If we don’t do that, any investment might be a bad one.”

 RF/Adam Pass Photography

How will regulations be changed?

One of Trump’s promises has been that by creating a new regulatory system, reforming current processes, and encouraging public-private investments (or P3s) he can cut red tape and move long-stalled projects forward. Like other aspects of an infrastructure overhaul taking shape, the devil is in the details.

Carbonell says proper oversight and regulatory update could give the sector a massive upgrade, saving time and money. There are “great benefits” to looking at what and how we do things, especially the procurement and finance processes.

“I don’t have a black or white view of P3s, other than to say people need to be careful and look out for the public interest,” says Carbonell. “With proper regulations and design, P3s may be part of the solution. But we can’t get something for nothing. If we want a trillion-dollar investment in infrastructure, we need to spend a trillion dollars.”

Others have a more pessimistic view of pushing for more private investment in infrastructure. According to urbanist and journalist Yonah Freemark, the push for privatization in infrastructure investment is consistent with Trump’s rhetoric—Secretary of Transportation Elaine Chao has been open to finding new private funding sources for infrastructure, and the proposed Trump budget does make massive cuts in public transportation spending—but will also significantly shape the way any new infrastructure policy works.

“One thing we know is that there’s no way private-sector entities would be involved with an infrastructure project unless it involves user fees or ways to make revenue,” he says. “That makes sense; why would you invest in a project that couldn’t make money? But that changes the decision-making process. It’s the perspective of a profit-making private company, not the public sector.”

That translates into support for moneymaking projects, such as pipelines, toll bridges, and toll roads, not, say, water pipes, or roadways in less dense rural areas, according to Freemark.

 Shutterstock

What kind of jobs will it provide?

Trump has also promoted infrastructure as a jobs program to help with unemployment. According to Scott Myers-Lipton, a professor of sociology at San Jose State University and author of Rebuild America: Solving the Economic Crisis through Civic Works and Social Solutions to Poverty, it’s tough to “square the circle” when it comes to providing high-wage jobs while cutting regulations (and potentially, labor protections) and encouraging private investment.

He sees New Deal-era social works programs, which provided direct employment through the government, as a much more effective means of creating a large-scale jobs program and truly putting America back to work.

“How is it going to help people earn stable incomes?” he says. ”So far, he has not yet put forward a plan that, in that Rooseveltian sense, meets the goal of getting living wage jobs to as many people as possible. This was one of his big promises, spend big on infrastructure and drive unemployment down.”

 

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https://www.curbed.com/2017/5/12/15632352/donald-trump-construction-roads-infrastructure?

New home sales decline 1.9% | South Salem Real Estate

Sales of new single-family houses in the United States declined 1.9 percent to a seasonally adjusted annual rate of 563,000 in October of 2016, compared to market expectations of a 0.3 percent rise. Figures for the previous month were revised down by 19,000 to 574,000. New Home Sales in the United States averaged 651.70 Thousand from 1963 until 2016, reaching an all time high of 1389 Thousand in July of 2005 and a record low of 270 Thousand in February of 2011. New Home Sales in the United States is reported by the U.S. Census Bureau.

United States New Home Sales

 

 

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http://www.tradingeconomics.com/united-states/new-home-sales

Mortgage rates at 3.47% | South Salem Real Estate

Oct 13, 2016) – Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates following Treasury yields and moving higher.

News Facts

  • 30-year fixed-rate mortgage (FRM) averaged 3.47 percent with an average 0.6 point for the week ending October 13, 2016, up from last week when they averaged 3.42 percent. A year ago at this time, the 30-year FRM averaged 3.82 percent.
  • 15-year FRM this week averaged 2.76 percent with an average 0.6 point, up from last week when they averaged 2.72 percent. A year ago at this time, the 15-year FRM averaged 3.03 percent.
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.82 percent this week with an average 0.4 point, up from last week when it averaged 2.80 percent. A year ago, the 5-year ARM averaged 2.88 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 the 10-year Treasury yield continued its climb as an increasing number of financial market participants foresee a December rate hike after a series of positive economic data releases. The 30-year fixed-rate mortgage moved up 5 basis points to 3.47 percent in this week’s survey, the first increase in one month. Even though we’ve seen economic activity pick up, consumer price inflation and implied inflation expectations remain below the Federal Reserve’s 2 percent target.”

Sales of new homes up | South Salem Real Estate

Sales of new single-family houses in the United States surged 12.4 percent to a seasonally adjusted annual rate of 654,000 in July of 2016. It is the highest figure since October of 2007 and much better than market expectations of 580,000. Figures for June were revised down by 10,000 to 582,000. New Home Sales in the United States averaged 652.45 Thousand from 1963 until 2016, reaching an all time high of 1389 Thousand in July of 2005 and a record low of 270 Thousand in February of 2011. New Home Sales in the United States is reported by the U.S. Census Bureau.

United States New Home Sales

 

Will Sellers Step up the Plate in 2016? | South Salem Real Estate

“It is important to recognize that 2016 is shaping up to be the best year in recent memory to sell. Supply remains very tight, so inventory is moving faster. Given the forecast that price appreciation will slow in 2016 to a more normal rate of growth, delaying will not produce substantially higher values, and will also see higher mortgage rates on any new purchase,” wrote Realtor.com Chief Economist Jonathan Smoke recently.

Should his sage advice to sellers fall on deaf ears, 2016 could produce one of the most miserable housing market in years.  After seven years of struggle, the issue no longer is demand, it’s supply. Anemic inventories are artificially driving up prices that keep first-time buyer trapped in rentals, which as expect to soar again this year.

Home sales prices have risen between 15 and 20 percent over the past three seasons, depending on which series you believe.  We’re less than 18 months away from reaching a national median sales price that’s higher than the very highest peak at the very top of the housing bubble in 2006.

Frozen stiff without enough equity to sell for nearly decade, owners at last have made it to the light at the end of the tunnel.  They can sell and cash out.  They can refi or take out a HELOC and stay put.  Moreover, with experts predicting that sale prices will moderate in 2016 to 4-5 percent appreciation from 6 percent as the market slow down to catch, this could be the perfect year to sell.

With the clock ticking on the opening of the 2016 season, now is the time potential sellers are making up their minds to sell or not.

Fannie Mae

In Fannie Mae’s December Home Purchase Sentiment Index, fewer than half of respondents said it’s a good time to sell (49 percent) and 41 percent said it’s a bad time to sell.  Not exactly a strong endorsement but at least movement in the right direction.  The best thing about the findings was that in November the sentiment to sell was even lower—48 percent said it was a good time and percent and 44 percent said it was a bad time.

 2016-01-07_13-11-01In December less than half of Fannie Mae’s survey sample said it’s a good time to sell.

The net percentage of respondents who say it is a good time to sell a house rose after falling for two months in a row – rising 4 percentage points to a net 8 percent positive at the end of the year.  Not much of an improvement over last year.

“Brightening economic prospects, if sustained, should stimulate demand for homeownership. However, continuing upward pressure on rental prices and constrained housing supply, particularly for starter homes, may mean prospective first-time home buyers could face affordability constraints,” said Fannie Mae’s Doug Duncan.

 

2016-01-07_12-51-57

 Twenty percent 0f Trulia’s sample of consumers said 2016 will he a better year to sell than 2015, and 36 percent more than in 2014.

Trulia

Trulia’s housing predictions survey showed real positive change as consumers recognized 2016 is a significantly better climate to sell than 2015 was. Some 20 percent said it will be better than 2015 to sell and 14 percent said it 2015 would he better than 2014, for a net gain of 36 percent in two years, more than a third of consumers.

 

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http://www.realestateeconomywatch.com/2016/01/will-sellers-step-up-the-plate-in-2016/

Will Sellers Step up the Plate in 2016? | South Salem Real Estate

“It is important to recognize that 2016 is shaping up to be the best year in recent memory to sell. Supply remains very tight, so inventory is moving faster. Given the forecast that price appreciation will slow in 2016 to a more normal rate of growth, delaying will not produce substantially higher values, and will also see higher mortgage rates on any new purchase,” wrote Realtor.com Chief Economist Jonathan Smoke recently.

Should his sage advice to sellers fall on deaf ears, 2016 could produce one of the most miserable housing market in years.  After seven years of struggle, the issue no longer is demand, it’s supply. Anemic inventories are artificially driving up prices that keep first-time buyer trapped in rentals, which as expect to soar again this year.

Home sales prices have risen between 15 and 20 percent over the past three seasons, depending on which series you believe.  We’re less than 18 months away from reaching a national median sales price that’s higher than the very highest peak at the very top of the housing bubble in 2006.

Frozen stiff without enough equity to sell for nearly decade, owners at last have made it to the light at the end of the tunnel.  They can sell and cash out.  They can refi or take out a HELOC and stay put.  Moreover, with experts predicting that sale prices will moderate in 2016 to 4-5 percent appreciation from 6 percent as the market slow down to catch, this could be the perfect year to sell.

With the clock ticking on the opening of the 2016 season, now is the time potential sellers are making up their minds to sell or not.

Fannie Mae

In Fannie Mae’s December Home Purchase Sentiment Index, Fewer than half of respondents in Fannie Mae’s survey of consumers said it’s a good time to sell (49 percent) and 41 percent said it’s a bad time to sell.  Not exactly a strong endorsement but at least movement in the right direction.  The best thing about the findings was that in November the sentiment to sell was even lower—48 percent said it was a good time and percent and 44 percent said it was a bad time.

 

read more…

 

http://www.realestateeconomywatch.com/2016/01/will-sellers-step-up-the-plate-in-2016/

Realtor.com, Airbnb partner to let homebuyers test-drive the neighborhood | South Salem Homes

Realtor.com and Airbnb have teamed up to allow potential homebuyers to “live like a local” by experiencing a specific neighborhood before purchasing.

Visitors to realtor.com will be able to book accommodations nationwide on Airbnb ranging from single-family homes to condos, lofts and other properties located near their desired neighborhood.

“This collaboration with Airbnb reinforces our commitment to giving consumers unparalleled insight to make informed real estate decisions,” said Ryan O’Hara, chief executive officer of Move. “Our relationship with Airbnb—a company that helps millions of people feel at home in communities around the world—allows us to reduce some of the unknown factors associated with relocating to a new community. It is what we mean when we say realtor.com puts the ‘real’ in real estate.”

“We’re pleased to team up with realtor.com to encourage and support the home buying process,” said Chip Conley, head of global hospitality & strategy at Airbnb. “As we offer a variety of unique accommodations in neighborhoods across the country, we’ll be able to allow potential homeowners the special opportunity to experience those neighborhoods as if they already live there – before making the decision to buy.”

Consumers who visit realtor.com to look at homes in new neighborhoods can select the option to “Airbnb before buying.”

 

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http://www.housingwire.com/articles/34291-realtorcom-airbnb-partner-to-let-homebuyers-test-drive-the-neighborhood

Mortgage Loan Rates Drop for Third Consecutive Week | South Salem Real Estate

The Mortgage Bankers Association (MBA) released its report on mortgage applications Wednesday morning. The report noted a week­over­week increase of 0.4% in the group’s seasonally adjusted composite index for the week ending April 3, following an increase of 4.6% for the week ending March 20.

Mortgage loan rates decreased on all types of loans last week. On an unadjusted basis, the composite index increased by 1% week­over­week.

The seasonally adjusted purchase index increased 7% compared to the week ended April 3. The unadjusted purchase index also rose by 7% for the week and is now 12% higher year­over­year.

The MBA’s refinance index decreased 3% week­over­week, and the percentage of all new applications that were seeking refinancing slipped from 60% to 57%, its lowest level since last October.

The MBA’s chief economist noted: Purchase mortgage application volume last week increased to its highest level since July 2013, spurred on by still low mortgage rates and strengthening housing markets.

Purchase volume has increased for three straight weeks now on a seasonally adjusted basis. Adjustable rate mortgage loans accounted for 5.5% of all applications, down from 5.6% in the prior week.

The FHA share of all applications rose from 12.8% a week ago to 13.2%, and the VA share increased from 10.5% to 10.7%.

 

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http://247wallst.com/housing/2015/04/08/mortgage-loan-rates-drop-for-third-consecutive-week/

U.S. Household Balance Sheet Improves Again | South Salem Real Estate

The balance sheet of U.S. households with real estate continues to improve – despite tight lending conditions – as increases in home prices continue. The real estate equity position of U.S. households (the difference between assets and liabilities) increased nearly 2.4% for the quarter according to NAHB tabulations of the fourth quarter Federal Reserve Flow of Funds.

The value household-owned real estate, including owner-occupied and second homes, totaled $20.6 trillion for the quarter. Total home mortgage debt outstanding stands at $9.4 trillion. The market value of real estate held by U.S. households increased $265 billion dollars during the quarter, while liabilities (home mortgages) remained virtually unchanged.

AssetLiability

Because the figures are not adjusted for inflation, it is useful to also examine the owners’ equity in real estate as a percentage of household real estate. The ratio is calculated by taking the aggregate equity position divided by the market value of owner-occupied real estate held by U.S. households. The higher the ratio the more favorable is the financial position of U.S. households with real estate. The current reading of 54.5% represents a significant improvement over the 39.1% registered as recently as the second quarter of 2011.

EquityPosition

The improvement in the balance sheet of U.S. households means fewer underwater homeowners, thereby unlocking housing supply and demand. This type of improvement in the balance sheet of U.S. households with real estate along with further improvements to job market could release pent-up housing demand.

 

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http://eyeonhousing.org/2015/03/u-s-household-balance-sheet-improves-again/

Mortgage Loan Rates Post Third Straight Weekly Rise | South Salem Real Estate

The Mortgage Bankers Association (MBA) released its report on mortgage applications Wednesday morning, noting a week-over-week decrease of 3.5% in the group’s seasonally adjusted composite index for the week ending February 20. That followed a drop of 13.2% for the week ending February 13. Mortgage loan rates increased on all five types of loans for the second consecutive week.

On an unadjusted basis, the composite index decreased by 12% week-over-week. The seasonally adjusted purchase index increased 5% compared to the week ended February 13. The unadjusted purchase index fell by 2% for the week and is now 2% lower year-over-year.

Home buying action is typically slow in January and February due to wintry weather. Home price increases have fallen sharply year-over-year, as Tuesday’s Case-Shiller home price index indicated. Interest rates are rising, likely in an effort to attract bond investors.

Adjustable rate mortgage loans accounted for 5.2% of all applications, down from 5.3% in the prior week.

The MBA’s refinance index decreased 8% week-over-week, and the percentage of all new applications that were seeking refinancing declined from 66% in the prior week to 62%.

The FHA share of all applications rose from 15.2% a week ago to 15.3%, and the VA share decreased from 8.0% to 9.6%.

The average mortgage loan rate for a conforming 30-year fixed-rate mortgage increased from 3.93% to 3.99%. The rate for a jumbo 30-year fixed-rate mortgage increased from 3.92% to 4.09%. The average interest rate for a 15-year fixed-rate mortgage increased from 3.24% to 3.28%.

 

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http://finance.yahoo.com/news/mortgage-loan-rates-post-third-123055690.html