Daily Archives: May 25, 2013

Oakland’s real estate market heats up, becomes attractive to many | Waccabuc Real Estate

Those tracking trends say Oakland is getting hot. It may have started with Oakland’s emerging restaurant scene or perhaps it was the buzz created by those First Friday gatherings. Now Oakland is on a list of most attractive cities for tech startups.

In the shadow of Oakland’s Occupy riots and violent crime, the city has been quietly gaining accolades as the place to be.

“The attraction is the diversity of culture,” said Albert Rowe, a new Oakland resident.

The National Venture Capital Association ranks it the 11th most attractive city for tech startups like Power Hive. The solar startup is electrifying remote villages in Africa with micro-grids.

“I don’t think we would be able to be in Silicon Valley in an office space that we are in today and afford the kind of space that we have here today. So we’d probably be working out of our garages,” said Jane Oyugi, the Power Hive vice president.

Also this month, online real estate company Movoto named Oakland “The Most Exciting City in America.” Home sales are thriving and young professionals are flocking there.

“Oakland has changed a lot since the last time I was out here. Even Uptown is changed. There’s new bars and restaurants down here. It’s real nice,” said Zachary Gostlin, a new Oakland resident.

The Bond, a modern/classic condominium in Jack London Square reflects the fast selling pace of homes in Oakland. They started selling five days ago and they’ve already sold four condos.

The New York Times calls Oakland the fifth most desirable travel destination, and Forbes Magazine ranked the Uptown District ninth among the top hipster neighborhoods.

“There’s a tremendous shift going on right now in the Bay Area. Oakland is the hot market and we see a large number of people moving from the Oakland Hills and San Francisco into Downtown Oakland to take advantage of all the cultural diversity and excitement that’s going on here,” said Paul Zeger, president of the Polaris Pacific Real Estate Company.

 

 

 

Oakland’s real estate market heats up, becomes attractive to many | abc7news.com.

New home sales rise, but market still a long way from ‘normal’ | Mount Kisco Real Estate

We’ve been hearing consistently good news on the housing front for a solid year now. Prices are up, sales are accelerating, and new construction is coming along. But while this week brought another round of positive signs, the United States is still a long way from what can be considered a “normal” housing market.

Both new and existing home sales improved last month. New home sales increased 2.3 percent in April to a seasonally adjusted annual rate of 454,000 homes (March was also revised upward to a 444,000 rate), according to a joint release from the US Census Bureau and the Department of Housing and Urban Development. That’s a 29 percent increase from the level seen a year ago.

“Not only did we have the increase in April, about as expected, but we had upward revisions for prior months and an acceleration in new home buying even compared to last year,” David Berson, chief economist for insurer Nationwide, said in a phone interview. “The level of sales and pace is the best that we’ve seen since the middle of 2008, when the economy was just beginning to fall into the Great Recession.”

Existing sales, which are calculated in a separate survey from the National Association of Realtors, crept up 0.6 percent to a 4.97 million annualized rate (again, with a revision upward for March). “April’s existing home sales is evidence of continuing momentum in the residential real estate market,” John Tashjian, principal owner of Centurion Real Estate Partners in New York,” wrote in an e-mailed analysis. “We have watched the market move swiftly into the recovery stage of a cycle and predict continued growth in sales followed by price appreciation, throughout 2013 and 2014.”

“On existing homes, demand is coming form investors who are taking distressed homes off the market and renting them,” Mr. Berson adds. “But that helps on the new home side, too.”

Prices have also accelerated, driven by tight inventories of existing homes and increased buyer demand. Another hopeful sign: the sales percentage of distressed homes continues to fall, down to 18 percent of sales in April.

But Berson warns that the market still has a long way to go. “These are numbers that historically aren’t huge,” he says. “Even if you look in the ‘90s, new home sales ran in a range of anywhere between 600,000 and a million. We’re only at about half of where we should be, and it’s going to take a while. We saw 1.2, 1.3 million during the housing boom, but that’s unsustainable. We need to get back to a pace of sales justified by the demographics, say, 900,000″ annually.

Two things are going to make getting to that point a slow climb, according to experts. The first is inventory, which is tight for both new and existing homes. “Unsold new home inventory are pretty close to all-time lows, because builders are being cautious,” Berson says. In the case of existing homes, the inventory squeeze is having a marked effect on certain areas of the country.

“Tight inventory – especially in the West, where the median price was up 17.5 percent from a year earlier – is clearly playing a role,” IHS Global Insight economists Patrick Newport and Stephanie Karol wrote in their e-mailed analysis. “Since housing starts are currently running well below underlying demand (1.3 to 1.5 million, according to our estimates), and since it takes on average about seven months to complete a home on getting a permit, inventories will probably remain lean through next year.”

The other culprit, at least according to the real estate industry, is stricter lending standards, which make it more difficult to get approved for a home loan.  “We don’t want to go back to 2003, but it’s probably a little too tight today,” Berson says.

This housing recovery is different than others, he adds, in that in the past the generally reliable real estate market has been the sector that leads the economy out of recessions. This time, it was the area of the economy that was “hurt most by the recession and recovered relatively modestly this time.

Still, “the housing market will continue to improve and outperform the rest of the economy over the next few quarters,” Mr. Newport and Ms. Karol from IHS write. “Existing home sales should climb about 8.5 percent in 2013 and 12 percent in 2014.”

 

New home sales rise, but market still a long way from ‘normal’ (+video) – CSMonitor.com.

Is Canada’s housing market on the verge of a crash? | North Salem Real Estate

Canada’s housing market has been a wildly popular topic lately with experts sounding off on everything from house-market affordability to house-buying intentions to the effects of too-long, very-low interest rates. All this is keeping the debate about the soft landing, or crash to come, firmly on the minds of Canadians.

The common link is the Bank of Canada’s benchmark rate, which has been frozen at 1.0 per cent since September 2010. The market doesn’t expect the central bank to move higher — if it moves higher — until sometime in the latter part of 2014, or even later, so in some ways there’s a bit more time to sit back, wait and watch.

If you believe The Economist, Canada’s housing market is “especially vulnerable” to a major correction, according to a recent analysis on global property markets. It says house prices here are overvalued by 73 per cent compared to rental prices, and 32 per cent overvalued when compared to household incomes.

“Home sales in March were 15% down on a year earlier. Buyers are in short supply. A recent poll showed that only 15% of Canadians are likely to buy a home in the next two years, down from 27% last year—the steepest decline in the 20-year history of the survey. After a big boom, the housing bust will be a wrenching affair,” the magazine stated earlier this month. This is golden for those who are in the doom and gloom camp, and don’t believe house prices will bounce any time soon.

Now, combine that with a recent warning by the Canadian Association of Accredited Mortgage Professionals. This week the group said many Canadians are managing their debt responsibly, and warned Ottawa’s clampdown on mortgage lending rules has set the stage for up to a 30 per cent plunge in home sales by 2015, translating into massive job losses related to the industry and other negative things that could crimp economic activity. Think of all those first-time home buyers who may be on the sidelines.

But in findings that appear to contradict The Economist and other pessimistic views, an RBC Economics analysis stated that while Canada’s housing market still faces higher-than-usual stress, recent affordability measures don’t suggest a “significant nation-wide price correction is imminent.” In fact, the low mortgage rates helped make owning a house relatively affordable — though arguably a more accurate definition would be less unaffordable —  in the first quarter of 2013, of course, with variations across regions.

At the same time, BMO housing confidence report showed consumers’ buying intentions were bolstered by low interest rates. This poll found some 45 per cent of Canadian homeowners say they are looking to buy a property in the next five years, also with results varying from region to region, in another bit of data to play up the good news story to reassure Canadians the sky isn’t falling. What’s more, it says first-time homebuyers could take advantage of low rates and shorter amortization periods for financial stability.

Given all the data, one can’t help but think everything is being held together — but just barely — thanks to low interest rates.

On that note, consider one final, powerful warning to add to the mix. The head of the country’s banking watchdog told a Bloomberg economic summit this week that a transition to higher rates could be really, really bad. That is, it is a greater incentive for banks to take on more risks when lending, business to depend on cheap credit and for borrowers take on more debt.

“No one can predict when, or how fast, rates will start to climb (or indeed, whether they will fall further),” Julie Dickson said in prepared text of a speech she delivered at the summit. “Yet dependence on low interest rates can become significant, meaning that transition to higher rates could be very painful.”

 

Is Canada’s housing market on the verge of a crash? | Insight – Yahoo! Finance Canada.

Troubling Signs In The Housing Market | Cross River Real Estate

The housing market showed signs of recovery in late 2011, beginning with a sharp upturn in housing stocks in October of that year. This was followed by a small upturn in housing starts and home sales starting in early 2012. While Wall Street economists and the media are avidly reporting that a full-fledged housing market recovery is under way, my view has been that what looks like a “recovery/bull market,” is more akin to a “dead cat” bounce and that the bear market in housing has a lot further to go to the downside.

With that in mind, I wanted to discuss some indicators I like to follow that, if they become full-blown fundamental trends, could be signifying the start of the next leg down in housing.

The first sign is housing starts. While the current crop of new and existing home sales reports hitting the tape are still showing some growth, assuming the seasonal adjustments are accurate, housing starts appear to be signaling possible future weakness. Housing starts should reflect a new homebuilder’s expectations of future sales. April’s starts were 853,000, which was 12% below the number expected by Wall Street economists and 16.5% below March’s revised number. When the housing starts for April were released, it was also reported that the March number was revised lower from 1.036 million to 1.021 million. Not as strong as originally reported.

 

Troubling Signs In The Housing Market – Seeking Alpha.

Jessica Simpson lists one home, keeps the other | Bedford Hills Real Estate

The “Fashion Star” judge just listed her longtime residence for $7.995 million, according to Zillow, who writes:

Custom-built in the early ’90s by award-winning L.A. designer Kerry Joyce, the 5,500-square-foot home is located in a private celebrity enclave with a gated entrance and vine-covered exterior. Simpson has owned the 5-bedroom property since 2005, when she bought it for $5.275 million following her separation from then-husband Nick Lachey.

To see photos of the California home, click here.

 

Jessica Simpson lists one home, keeps the other | HousingWire.

Sacramento housing market nears normal | Bedford Real Estate

With 42 new permits issued in January through March of this year, Sacramento increased by 121% over the same period a year earlier, according to RealtyTrac. Foreclosure starts slid by 74% when compared to the pace from a year earlier, writes the Sacramento Business Journal.

 

Sacramento housing market nears normal | HousingWire.

Foreclosure threat subsides for more Miami households | Pound Ridge Real Estate

Foreclosure rates in the greater Miami area remain astonishingly high, but they’re headed in the right direction.

In March, 13.25 percent of the outstanding mortgages in the Miami, Miami Beach and Kendall area were in some stage of the foreclosure process, according to CoreLogic. That was down from 17.51 percent a year earlier. But it was dramatically higher than the national foreclosure rate of 2.84 percent, according to the Irvine, Calif.-based real-estate data firm.

 

Foreclosure threat subsides for more Miami households | HousingWire.

7 Questions to Ask Yourself to Bring Clarity to Your Blogging | Bedford Corners Realtor

Do you feel like you’ve lost clarity around what it is that you’re trying to do with your blog?

I’ve recently bumped into a few bloggers grappling with this idea. Some were new,  even ‘Pre’ Bloggers, while a couple had been blogging for a while but had lost some direction.

Out of these conversations, I put together a set of questions to help them think it through.

The questions revolve around asking:

What are YOU About?YOU

While I won’t guarantee you instant clarity on answering these questions I hope that putting a little time aside to work through them might help – please let me know if they do!

  1. What interests do you have?
  2. What experiences (good and bad) have you had?
  3. What expertise and skills do you have?
  4. What are your passions?
  5. What gives you energy?
  6. What do you talk a lot about to friends?
  7. If you could write about anything – what would it be?

7 Questions to Ask Yourself to Bring Clarity to Your Blogging : @ProBlogger.

Chappaqua Realtor | Responsive Marketing

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In the beginning, there were products and services, and some were good. Fewer became trusted brands, but those that did enjoyed unquestioned loyalty supported by a simple yet effective marketing engines built to reach people in mass quantity. The formula worked for decades. An empire was built on the shoulders of Madison Avenue and expanded globally. It is an empire, which still exists today, though arguably it’s a diminished version of its former self.

More recently, technology has had it’s own evolutionary process which it’s still going through. Well over a decade ago, when large organizations developed and updated their complex Web properties, the most popular and rigorous process one could follow in development was referred to as “Waterfall”.  Think of this as a descending, linear staircase where one step of the process was completed in full before moving on the next. The methodology was rigorous, but also left little room for tweaking, testing, adapting and improving along the way.

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Responsive Design
Today, digital design and development is often done leveraging the “agile” method of development, which favors smaller, cyclical bursts of development and rapid testing. Start-ups favor this approach as well building not only their tech products but also their business models in a way, which resembles more of an agile philosophy vs. a rigid, sequential approach. Even “large” start-ups like Facebook demonstrate this in how they roll out enhancements to their global platform, often making the changes incrementally, rolling them out with select users and then adjusting based off the data they analyze. Google often works this was as well. If you were to undertake designing and building a digital property today—you would also have to ensure that it would perform across multiple platforms (desktop, tablet, mobile). A popular methodology for developing this way is called “responsive design”—a technique, which leverages code that results in a shape shifting design which auto-magically fits the medium it, is being interacted with in.

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Most Marketing Remains Linear And Unresponsive
Despite the pervasive nature of all manifestations of digital, including social and mobile, much of the marketing emphasis remains dedicated to reaching people in mass, following a tried and true formula for advertising designed to build off consumer insights and craft compelling messages which could be distributed across a myriad of channels (including digital). The approach is designed for the broadcast industrial machine including print, radio and television, which, despite rumors of its demise is likely to stay with us for some time. The problem it poses however is that it is an approach that much like its counterpart in tech development, (Waterfall) is neither nimble nor flexible and isn’t built for rapid change nor does it adapt well beyond the dominant media it was designed for.

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“Content Marketing” Is Disrupting Modern Day Brand Building
CMOs, chief digital officers and brand managers across many organizations are currently grappling with the notion of content used in the context of marketing—inherently they understand that their customers value content, consume it, create it, and share it—and they want in on the action. They also understand that this type of content isn’t often the traditional campaigns they execute for broadcast so they face a dilemma:

What content do consumers value most?

How do they find it?

What gets individuals sharing content with peers?

How does content scale, reaching the right audience at the right time?

How do brands insert themselves into the content ecosystem in ways that bring value back to the brand?

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Responsive Marketing
The solution to the content question lies somewhere between acknowledging that a brand must support both a traditional, linear marketing model in addition to a newer, cyclical construct which is constantly in tune with the current environment and operates in consolidated time frames. Responsive marketing sits at the core of the content evolution that many companies find themselves trying to navigate as they pull together newsrooms,command centers and media operations which are designed to help brands act more like publishers. All of these can be effective in treating the symptoms a brand may exhibit if they possess only competencies in linear forms of marketing, but they do not address the root issue—deconstructing a marketing machine which places the majority of resources on mass marketing will ensure it never gains proficiency in alternate forms of content and media.

A more holistic approach is needed.

 

Logic+Emotion: Responsive Marketing.

Banks Seen Holding REOs for Higher Prices | Armonk Real Estate

Real estate agents report banks are keeping foreclosures off the market in hopes of higher prices, a practice that is temporarily reducing the percentage of distress sales but lengthening the foreclosure timeline.

The share of distressed properties in the housing market fell to a three-and-a-half-year low in April, falling to 33.0 percent in April, based on a three-month moving average. That was not only down from 35.6 percent in March, but also a very sharp drop from the 43.6 percent distressed property market share seen a year ago, according to the latest Campbell/Inside Mortgage Finance HousingPulse Tracking

However, there also are reports from real estate professionals participating in the survey that many banks are holding back their sale of foreclosed properties until home prices climb further. As a result, there is the potential for a spike in distressed property sales in the coming months.

In the past year, charges that lenders have sought to manipulate REO process have increased as foreclosure inventories have declined.

In EForeclosure Magazine last April, Wells Fargo senior economist and vice president Scott Anderson explained that withholding a number of foreclosure properties for sale from the real estate market is a deliberate effort on the part of lenders to abate the drastic decline in home prices.

Results from a study of the foreclosures market showed that only one third of repo homes are being marketed for sale. Anderson added that if banks will release all foreclosure properties on their portfolios for sale, property values will surely take another steep plunge.

Anderson pointed out that withholding foreclosure properties from the market could greatly impact the balance sheets of lenders and for any individual who will try to sell a home or seek mortgage refinancing.

In studies for AOL Real Estate last year, RealtyTrac found that just 15 percent of REOs in the Washington, D.C., area were for sale, a statistic that is representative of nationwide numbers, the company said.  CoreLogic provided an even lower estimate, suggesting that just 10 percent of all REOs in the country are listed by their owners, which include Fannie Mae and Freddie Mac as well as the Federal Housing Administration. As of April 2012, 390,000 repossessed homes sat in limbo, while about 39,000 were actually listed for sale, said Sam Khater, senior economist at CoreLogic.

The drop in distressed property activity in April was accompanied by a parallel dip in the percentage of purchases attributable to investors, the latest HousingPulse numbers show. Investors accounted for 21.6 percent of home purchase transactions tracked last month based on a three-month moving average. That was the lowest investor share recorded since November.

Foreclosed properties in need of repair – or so-called damaged REO – remain the largest category of purchases by investors. Typically, investors buy these properties, fix them up, and then turn them into rental housing.

Last month investors accounted for 62.8 percent of damaged REO purchases, HousingPulse numbers show. This compared to a 63.9 percent share in March and a 60.4 percent share a year earlier.

 

Banks Seen Holding REOs for Higher Prices | RealEstateEconomyWatch.com.