Monthly Archives: July 2013

Housing Unfazed by Higher Rates | Pound Ridge Real Estate

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Rising mortgage rates haven’t stalled the housing rebound, says Kathy Fettke, CEO of Real Wealth Network, a California-based real estate investment club.

Indeed, the rate increase has accelerated the recovery, as buyers don’t want to miss out before rates rise too high, she tells Newsmax TV in an exclusive interview.

The 30-year fixed mortgage rate averaged 4.37 percent during the week ended July 18, up from 3.35 percent in the week ended May 2, according to Freddie Mac.

Watch our exclusive video. Article continues below.



“There’s been so much fear that if mortgage rates go up, it’s going to slow down the housing recovery. But we’re seeing the opposite, because as interest rates go up, people panic,” Fettke said. “They don’t want to get in too late, so they get off the fence and buy now.”

While it may sound strange after seven years of glutted inventory, there’s now a housing shortage, Fettke says. “So that’s why investors like me are buying land, realizing that building is the future,” she said.

“We have 4.5 million new residents in the U.S. every year, and building came to a complete stop, so we have a little catch up to do.”


Part of the problem was that builders stopped buying land and didn’t get titled, Fettke says. So now, “they’re a little bit behind on that part of it.”

A continuation of current trends could send home prices up for two to three years, Fettke says.

The S&P Case Shiller Index of home prices soared 12.1 percent for the year that ended in April.

Right now housing demand is strongest in coastal states, she says, and some of that increase stems from foreign buyers.

“Chinese buyers, they want to get their money out of China and into what they deem is safe, which is U.S. housing,” she said. “And they’re buying in what we call the ‘sand states’ — California, Nevada, Arizona and Florida.”

 

 

 

Real Wealth Network’s Fettke: Housing Unfazed by Higher Rates.

Half Empty but Full of History, Brill Building Seeks Tenants | Bedford Real Estate

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If ghosts paid the rent, Eric Hadar would have an all-star tenancy: Freddy Bienstock, Johnny Burke, Cab Calloway, Nat King Cole, Tommy Dorsey, Duke Ellington and Jimmy Van Heusen, to name a few. Not to mention J.J. Hunsecker and Danny Rose.

The Brill Building, at 49th Street and Broadway, currently stands more than half empty, after the closing last year of Colony Records and the Sound One postproduction studio.

But ghosts do not pay the rent. Neither do fictional characters. Their onetime home, the Brill Building, 1619 Broadway, at West 49th Street, now stands more than half empty, after the closing last year of Colony Recordsand the Sound One postproduction studio.

Mr. Hadar, the chairman of Allied Partners, a private real estate investment company, believes he can breathe life back into the Brill Building by evoking its show business past. He paid $185 million for the 11-story landmark in February.

For starters, he is in discussions with the Songwriters Hall of Fame — a 44-year-old organization with plenty of fame but no hall — about establishing a small museum in the Brill Building, where songwriters once swarmed to stake out the 80 or 90 music publishers or catch the attention of entertainers whose offices were there. The songwriters group will also curate a permanent exhibition in the lobby.

Irwin Z. Robinson, the chairman of the National Music Publishers’ Association, briefly had an office in the 11th-floor penthouse suite leased to Mr. Bienstock, who was closely associated with Elvis Presley. Mr. Robinson recalled certain songwriters, naming no names, who would knock on enough doors at the Brill that they would end up with a couple of buyers, meaning that two or three publishers owned 100 percent of their songs.

The tale was greeted with amusement by two celebrated songwriters, Jimmy Webb (“By the Time I Get to Phoenix,” “Wichita Lineman, “Up, Up and Away”) and Desmond Child(“Livin’ la Vida Loca,” “You Give Love a Bad Name,” “Angel”), who were visiting the building with Mr. Robinson and Mr. Hadar.

Standing in the gleaming, mirrored lobby, Mr. Webb said, “It’s like the physical manifestation of the Songwriters Hall of Fame.” He is the organization’s chairman.

Mr. Hadar said he was prepared to spend $50 million or more to finance, renovate, repair, maintain and lease the Brill Building.

“I would like to get a premium in rents by developing a building that’s exciting because of the people who are in there,” he said.

Though the building was designated an official landmark in 2010, it scarcely stands out these days on Broadway, especially without Colony Records. Its other retail space, where Jack Dempsey’s Restaurant did business from 1937 to 1974, is also dark.

The Brill Building is still home to three important show-business offices: Paul Simon, an inductee of the Songwriters Hall of Fame; Broadway Video Entertainment, a production, postproduction, marketing and distribution company led by Lorne Michaels; and Key Brand Entertainment, which develops touring theatrical productions.

There is also at least one remnant of the days when the Brill Building was a kind of vertical Tin Pan Alley. On the sixth floor, a visitor can find “St. Nicholas Music Inc.,” as the hand-painted gold-leaf letters proclaim on the transom over a door with chicken-wire frosted glass, brass hardware and a mail slot. This is the company that licenses “Rudolph, the Red-Nosed Reindeer,” 64 years after Johnny Marks wrote it.

 

Half Empty but Full of History, Brill Building Seeks Tenants – NYTimes.com.

‘Without a Trace’ Star Enrique Murciano Sells Home | Bedford Hills Real Estate

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Enrique Murciano may be leaving celebrity-central Woodrow Wilson Drive, but he isn’t leaving without a trace. The 40-year-old actor has been hopping from one L.A. bachelor pad to another for the past few years.

In 2004, he purchased a 3-bedroom home that he later sold in 2008. He upgraded to a 4-bedroom, 3.5-bath at 7334 Woodrow Wilson Dr, Los Angeles, CA 90046 in 2009 but got the real estate bug again four years later.

Murciano listed the place for $1.749 million in May. He must have had more than one offer because he just closed the deal for $2.042 million, well above his asking price.

The interior, spanning 2,709 square feet, has a cool retro-meets-modern vibe. A grand piano contrasts with an abstract painting in the living room, while vintage-inspired appliances are modernized with sleek black countertops in the kitchen.

Framed by walls of windows, the home provides a hilltop view, yet still affords privacy.

“This wonderful home is secluded and gated — perfect for the celebrity type,” the seller’s agent wrote in the listing description. “The property is lushly landscaped.”

Murciano, who’s most-known for his role on the CBS drama “Without a Trace,” has also appeared on popular TV shows including “CSI” and “NCIS” and films such as “Black Hawk Down” and “Miss Congeniality 2: Armed and Fabulous.”

 

‘Without a Trace’ Star Enrique Murciano Sells Home | Zillow Blog.

The full catastrophe | Mt Kisco Real Estate

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“Zorba, have you ever been married?”

“Am I not a man?” Zorba says. “Of course I’ve been married. Wife, house, kids, everything — the full catastrophe!”

Zorba wasn’t saying marriage or having children was a nightmare. He was reflecting on life, with its sadness, tragedies, trials and tribulations.

When I read the news about NAR and realtor.com amending their marriage agreement, Zorba came to mind.

From a business angle, the history of realtor.com fits the bill of the “full catastrophe.” It’s a narrative of fear, boldness, criminality, insider dealing, greed, success and secrets — and in this case a troubled marriage.

Lately, revisionist history abounds about this epic real estate insider story.

 

 

The full catastrophe | Inman News.

Malcolm Forbes’ NJ Estate Listed for $3.4 Million | Waccabuc Real Estate

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A treasured estate can be hard to give up, especially one with a special history and a family legacy.

The legendary 24-acre Forbes estate that once hosted lavish galas attended by international celebrities and dignitaries is listed for $3.4 million. The 6-bedroom, 7.5-bathroom property, dubbed “Timberfield,” was purchased in 1950 by the late publisher/owner of Forbes magazine, Malcolm S. Forbes.  Despite owning properties all over the world, he chose to raise his five children here, including current CEO and editor-in-chief of Forbes Media, Steve Forbes.

According to the Timberfield’s real estate agent, Sylvia Kissel of Turpin Realtors, the home stayed in the family after Malcolm Forbes’ passing in 1990. The estate is currently owned by one of his sons.

Located at 95 Old Dutch Pl, Bedminster, NJ 07921, the breathtaking property is a piece of history in itself. Once a farmhouse, the oldest section of the house dates back to 1760, with additions following in the 1860s, the 1920s and again in 1961, when a bomb shelter was built. The room has since been renovated into a movie theater, Kissel said.

Besides being owner/publisher of Forbes magazine and close friends with Hollywood icon Elizabeth Taylor, Malcolm Forbes was known for his collections, including motorcycles and hot air balloons. It was at this estate that Forbes housed his precious collectibles, utilizing one garage for his motorcycles and a larger garage for his ballooning equipment and vehicles.

Timberfield holds the essence of the American dream. The colonial-style architecture is presented in a pristine white exterior with dark shutters. Brick accents are visibly significant, noted in the chimneys, patio structures and pool surroundings. The only thing missing is a white picket fence, but with acreage as vast as this, it is not quite necessary.

The interior decor is classic, boasting pastel walls of pale green, lemon chiffon, ecru and vanilla with delicate floral patterns integrated throughout. The library is reminiscent of Forbes’ Scottish roots, lined with a blue/green tartan rug and rich mahogany walls. Malcolm’s father, Bertie Charles Forbes, was a Scottish immigrant and founded Forbes magazine in 1917.

“We hope to find a buyer that will be the next family to take care of it,” Kissel said, noting the property was dear to Malcolm Forbes and his family.

The estate also features a tennis court and 3 guest cottages, living up to the image of luxury and success that is often attached to the Forbes name. Ten additional acres are also available for purchase, which would bring the total cost of the estate to $4.25 million.

 

Malcolm Forbes’ NJ Estate Listed for $3.4 Million | Zillow Blog.

Home sales dip, but still ‘enough momentum’ to sustain housing | Cross River Real Estate

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It was an up and down month in June for the real estate market. While existing-home sales dipped compared with the prior month, the trend line was still upward as sales surpassed their prior-year level. The median price popped for the 16th consecutive month and sales of new homes—counted separately–rose significantly.

Existing-home sales

 

Completed sales of existing detached houses, townhomes, condominiums and co-ops dipped 1.2 percent in June compared with May, but remains above levels seen in June 2012, according to the National Association of Realtors. The national median price for those homes was $214,200 in June, up 13.5 percent from June 2012.

These numbers are seasonally adjusted, so the normal cyclical rise in springtime home-buying activity is factored in.

In a statement, NAR Chief Economist Lawrence Yun said there was “enough momentum” to sustain the market, despite a mid-month spike in mortgage rates. Houses are still affordable–in terms of price and financing–in most of the country and pent-up demand from buyers is still strong, though higher mortgage rates will “bite into” high-cost regions of California, Hawaii and New York City, Yun said.

Supply broadens some

 

The supply of for-sale homes rose nearly 2 percent to 2.19 million existing homes on the market at the end of June. That represents a 5.2-month supply at the June pace of sales, up from 5 months’ supply in May. A year earlier, the supply stood at 6.4 months.

“Inventory conditions will continue to broadly favor sellers and contribute to above-normal price growth,” Yun said.

Distressed sales

 

Short sales and foreclosure sales dipped to 15 percent of the total in June, down from 18 percent in May. In June 2012, these so-called distressed sales made up 26 percent of the transactions. Both short sales and foreclosures typically sell at a discount, so their shrinkage as a percentage of the total accounts for some of the increase in the median price, NAR said.

Homes sold in June were on the market a median of 37 days compared with 41 days registered in May and 70 days recorded in June 2012. Short sales took much longer while foreclosures and non-distressed homes sold slight faster than 37 days. Forty-seven percent of all homes sold in June were on the market less than one month, NAR reported.

 

Home sales dip, but still ‘enough momentum’ to sustain housing | HSH Financial News Blog.

America’s Emerging Housing Crisis | Katonah Real Estate

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The current housing recovery may be like manna to homeowners, but it may do little to ease a growing shortage of affordable residences, and could even make it worse. After a recession-generated drought, household formation is on the rise, notes a recent study by the Harvard Joint Center on Housing Studies, and in many markets there isn’t an adequate supply of housing for the working and middle classes.

Given problems with regulations in some states, particularly restrictions on new single-family home development, the uptick in housing prices threatens both prospective owners and renters, forcing people who would otherwise buy into the rental market. Ownership levels continue to drop, most notably for minorities, particularly African Americans. Last year, according to the Harvard study, the number of renters in the U.S. rose by a million, accompanied by a net loss of 161,000 homeowners.

This is bad news not only for middle-income Americans but even more so for the poor and renters. The number of renters now paying upward of 50% of their income for housing has risen by 2.5 million since the recession and 6.7 million over the decade. Roughly one in four renters, notes Harvard, are now in this perilous situation. The number of poor renters is growing, but the supply of new affordable housing has dropped over the past year.

So while the housing recovery — and the prospect of higher prices — does offer some relief to existing homeowners, it’s having a negative impact further down the economic ladder. For the poorest Americans, nearly eight decades of extensive public subsidies have failed to solve their housing crisis. Given the financial straits of most American cities — particularly those like Detroit that need it the most — it’s unlikely the government can rescue households stressed by the cost of shelter.

As one might suspect, the problem is greatest in New York, New Jersey and California, say the Harvard researchers .In those three states 22% of households are paying more than 50% of pre-tax income for housing, while median home values and rents in these states are among the highest in the country. According to the Center for Housing Policy and National Housing Conference, 39% of working households in the Los Angeles metropolitan area spend more than half their income on housing, 35% in the San Francisco metro area and 31% in the New York area. All of these figures are much higher than the national rate of 24%, which itself is far from tolerable.

Other, poorer cities also suffer high rates of housing poverty not because they are so expensive but because their economies are bad. In the most distressed neighborhoods of Baltimore, Chicago, Cleveland and Detroit, where vacancy rates top 20%, about 60% of vacant units are held off market, indicating they are in poor condition and likely a source of blight.

America’s emerging housing crisis is creating widespread hardship. This can be seen in the rise of families doubling up. Moving to flee high costs has emerged as a major trend, particularly among working-class families. For those who remain behind, it’s also a return to the kind of overcrowding we associate with early 20th century tenement living.

As was the case then, overcrowded conditions create poor outcomes for neighborhoods and, most particularly, for children. Overcrowding has been associated with negative consequences in multiple studies, including greater health problems. The lack of safe outside play areas is one contributing factor. Academic achievement was found to suffer in overcrowded conditions in studies by American and French researchers. Another study found a higher rate of psychological problems among children living in overcrowded housing.

 

America’s Emerging Housing Crisis – Forbes.

Singapore Home Prices Climb to Record as Loan Curbs Imposed | Bedford NY Homes

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Singapore home prices climbed to a record in the second quarter as gains in suburban housing values accelerated, prompting the government to implement new measures on property loans.

The island-state’s private residential property price index rose 1 percent to 215.4 points in the three months ended June 30, extending a 0.6 percent increase in the first quarter, according to revised figures released by the Urban Redevelopment Authority today. The pace of gains in prices in the suburbs more than doubled from the previous three months.

Enlarge imageSingapore Home Prices Climb to Record as Government Curbs Loans

Traffic travels along the Benjamin Sheares Bridge, past a condominium development, in Singapore. Photographer: Munshi Ahmed/Bloomberg

Record home prices amid low interest rates raised concerns of a housing bubble and prompted the government to widen a four-year campaign to curb speculation in Asia’s second-most expensive housing market. Singapore on June 28 unveiled new rules governing how financial institutions grant property loans to individuals.

Apartment prices fell 0.2 percent in prime districts in the second quarter, compared with a 0.6 percent gain in the previous three months. Those in the suburbs climbed 3.8 percent, compared with the 1.4 percent increase in the previous quarter, according to today’s government data.

Suburban Demand

Suburban demand was boosted by Singaporeans upgrading from living in apartments built by the state to private condominiums. About 82 percent of Singaporeans reside in government-built units, according to Housing Development Board’s website.

CapitaLand Ltd. (CAPL) may alter the size of its apartments as it seeks to improve affordability to combat government measures, Lim Ming Yan, president and chief executive officer at Singapore’s biggest developer, said in a Bloomberg Television interview in Singapore yesterday.

“We want the right sizing, put in the right layout, so our users will find it a lot more user-friendly and at the same time something they can afford,” Lim said.

Singapore is Asia’s most-expensive housing market after Hong Kong, according to a Knight Frank LLP and Citi Private Bank report released last year that compared 63 locations globally. Hong Kong homes cost an average $28,300 per square meter in 2011 compared to Singaporewhere an apartment would cost $25,600 per square meter, the report showed.

 

Singapore Home Prices Climb to Record as Loan Curbs Imposed – Bloomberg.

Navigating the Scarsdale Real Estate Market | Pound Ridge Homes

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Here are some tips that will make your home more presentable to buyers, and also help you prepare to move into your new digs.

  1. Clear out clutter.  If you haven’t touched it within the past year, toss it. You can also donate unwanted items to charity. One of the best places to drop off items is Goodwill. There’s a dropoff center nearby at 19 Mill Road in Tuckahoe. For more information you can call 914-337-3749. There’s also a Salvation Army at 562 North Avenue in New Rochelle. If your items are too good to get rid of, pack up things you plan to take with you and get them out of sight. If necessary, rent a storage space locally at Storage Deluxe, or use CubeSmart Self Storage.
  2. While you’re cleaning your home for viewers, pack up most of your personal photographs.  They are distracting to potential buyers and this action will help them see the house as their potential home instead of yours.
  3. Keep your kitchen clean.  That means flowers on your table, no dishes in the sink, no junk on the counters, and no finger smudges around cabinet handles. Pack up everything but the bare essentials from the cabinets so that they are tidy too. If a prospective buyer opens a kitchen cabinet and sees too much stuff, they will think the kitchen is cramped.
  4. Keep your closets tidy too. Packing little by little will make your final transition easier. Plus, buyers think a tidy homeowner has also taken good care of the place.  Lining up shoes, and grouping shirts, pants and dresses together in the closet can also make a big impact.
  5. Sometimes the old adage “less is more” applies to furniture in your home.  Move some things to storage if individual rooms are too crowded.  It will make the rooms appear larger.
  6. If there are window treatments, light fixtures, appliances or other “attached” items you plan to take with you, remove them and replace them before showing your home so that the buyer won’t think they are included.
  7. Freshen up paint and make repairs to things such as torn screens, cracked tiles and rotting windowsills before the realtor even puts the sign up. If the realtor sees potential problems like these, he or she might not make showing your home a top priority.
  8. If your daughter’s room is pink, or your living room is painted a bold color, consider repainting it a more neutral color. Depersonalizing your home allows viewers to use their imaginations and visualize your home as their own. Don’t let buyers walk away remembering your home as “the one with the orange bathroom.”
  9. Lighting is everything, so make sure there are no burned out bulbs inside or outside your home, and make sure you have the most complimentary lighting on when your realtor brings over a client. Overhead lights show too many issues and flaws, but a soft lamp in a corner makes a room seem cozy.
  10. Make the beds, and make them nicely!  Don’t just toss the pillows on–arrange them in an aesthetically pleasing way.
  11. Make sure all mirrors, windows, porcelain, faucets and appliances are clean and sparkly!
  12. Dust and vacuum every single surface, including baseboards, ceiling fan blades, and carpet in the corners of stairs and rooms.
  13. Choose a fresh scent that doesn’t smell too much like bleach to clean tiles, tubs and toilets.
  14. Little touches like pulling down all window blinds to the same level and making your front entrance inviting set the tone for the way the rest of the house is viewed.
  15. Outside is as important as inside. Mow grass, trim bushes, and sweep away cobwebs, leaves and dog hair.
  16. Invest in a potted plant or two to put along your front steps.  You won’t believe what a difference that little touch of curb appeal will make.

 

Navigating the Scarsdale Real Estate Market – Real Estate – Scarsdale, NY Patch.

US mortgage rates tick downward again: Good news for home prices? | Chappaqua Real Estate

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First the good news: Mortgage interest rates ticked downward for a second straight week. But it’s still been a volatile ride in recent months, and the general direction of interest rates for home loans has been up.

What does that mean?

 

If you’re a home buyer, that means the money you’ve budgeted for housing doesn’t go as far, in terms of the price you can offer to pay.

 

If you’re a home seller or home owner, a spike in interest rates can sometimes stall or even reverse the trend of rising home values. But the damage of rising interest rates doesn’t appear to be as bad as you might expect. History tells the tale, as we’ll see in a moment.

 

As of Thursday, the latest average interest on a 30-year fixed-rate loan is 4.31 percent a year, according to the firm Freddie Mac. That’s down from 4.51 percent two weeks ago.

 

Still, current US mortgage rates are also up a full percentage point from where they stood back in January. So the fact that their upward race has stalled, for a couple of weeks at least, is welcome news for the housing market.

 

“Mortgage rates eased for the second consecutive week which should help to alleviate market concerns of a slowdown in the housing market,” Frank Nothaft, chief economist of Freddie Mac, said in a statement released with the weekly mortgage data. “Existing home sales for June were the second highest since November 2009 and new home sales were the strongest since May 2008.”

 

The progress in the housing market is important for the whole economy, providing some important fuel at a time when gross domestic product is growing only modestly.

 

Home prices have been rising, boosting consumer wealth, and construction jobs have been aided by a relative shortage of homes for sale.

 

Many economists say modestly rising mortgage rates aren’t likely to stop the housing recovery. For one thing, mortgage rates are still historically low.

 

History suggests that moves in mortgage rates can exert an influence on home prices – in the opposite direction. But in some cases the damage isn’t very bad.

 

US mortgage rates tick downward again: Good news for home prices? – CSMonitor.com.