Category Archives: Waccabuc NY

Luxury Sellers Hang Tough on Prices | Waccabuc Real Estate

Even though the time it takes to sell a luxury property has increased to as long as 260 days in Chicago, 287 in Miami and 197 nationally, fewer sellers are cutting prices.

Wintertime sluggishness has slowed luxury markets across the nation. Days on market have been increasing in nearly every major market tracked by the Institute for Luxury Home Marketing, and inventories are at a seasonal low, down from 27,600 properties in June to 18,400 in January.

Rather than falling with the end of the summer buying season, low inventories have placed upward pressure on prices, which have risen from a median of 1.11 million in September to 1.23 in January, according to ILHM data.

Perhaps as a result of strong prices, sellers are not responding as they normally do in the winter by cutting prices to generate interest among buyers. In fact, fewer are reducing prices today than when days on market were lower last summer.

The percentage of homes on the market that have lowered their asking price at least once over the past 90-day period has fallen 10 percentage points since the end of the summer, from 31.4 percent of properties to 24.4 percent. This statistic illustrates how many listed properties may be behind the “price curve” – listed at a price above what the market is willing to pay for similar properties. Even in strong seller’s markets, the percent price decreased will be 10-12 percent, so some repricing of individual properties is common in any market. In weaker markets, this value begins rise into the teens, 20 percent, 30 percent, and higher. Percent price decreased is an insightful gauge of demand levels in the residential housing market.

The National Association of Realtors reported that sales of luxury homes spiked in the final months of 2012 as high-end homeowners rushed to take advantage of lower tax rates before January 1.

Many sellers wanted to cash in on their homes before a widely expected capital gains hike — to 20 percent from 15 percent — that was part of the fiscal cliff budget deal. According to the National Association of Realtors (NAR), sales of homes valued at $1 million or more spiked 51% in November compared with a year earlier.

Current Confidence Index for Single-Family Homes Steady | South Salem NY Real Estate

The majority of REALTORS® continued to report rising home prices and improving days on the market.  However, REALTORS®   reported that  the market remains hampered by a “demanding and rigid loan qualification process”  that  has made mortgage underwriting  “a nightmare”  and “the toughest hurdle.” This has led to cash  buyers and investors easing out  first time buyers using mortgage financing.   Low inventory  persists and REALTORS® have reported homes selling above the list price.  Policy uncertainty on a variety of economic and and tax issues, mainly due to the tepid job growth and  measures to avert the the fiscal cliff  — continues to dampen  the market. Hurricane Sandy also caused a temporary market slowdown in the affected areas, although a recovery is anticipated in the coming months.

What Does This Mean for REALTORS®?

Concerns over the residential home sale market are probably reflective of  current economic uncertainties.  In fact, the home sales markets have been recovering in price and sales in many areas, and mortgage rates are low—although finding a mortgage may take a number of applications.  REALTOR® confidence is well above its level two years ago, and prices and sales are slowly increasing.  Assuming that the economy continues  and that the fiscal cliff issue is addressed — which is the assumption of most economists  —  one would expect a continued expansion of home sales.

Good and bad news for multifamily housing | Waccabuc Realtor

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“At a 4 percent cap rate, all you need is rates to bounce by 100 basis points and you are going to wipe out an investor’s equity”
–Matt Galligan, CIT Real Estate Finance

Of the top 180 metros in the country, 44 doubled the amount of multifamily construction in 2012, according to a study by John Burns Real Estate Consulting that was released toward the end of last year.

To quote the study, “Among the major markets, the growth is staggering.”

I checked in with Lesley Deutch, a John Burns vice president, who worked on the report.

One has to look closely at the data, Deutch said, because smaller markets are included and, on a percentage growth basis, they can distort the picture.

For example, Bend, Ore., saw only two multifamily permits in 2011, but issued 120 in 2012, so the percentage of growth looks astronomical. The same would be for cities such as Huntsville, Ala., Pensacola, Fla., and Prescott, Ariz., all of which had fewer than 30 permits in 2011, but more than 100 in 2012.

This isn’t to say some larger markets weren’t showing extraordinary growth.

Durham, N.C., saw multifamily permits increase more than 400 percent in 2012 compared to 2011; West Palm Beach, Fla., close to 250 percent; and such cities as Charlotte, N.C., Jacksonville, Fla., Austin, Texas, Fort Lauderdale, Fla., Fort Worth, Texas, Raleigh-Carey, N.C., Atlanta, Ga., and San Jose, Calif., more than 100 percent.

In terms of number of permits issued in 2012, Austin and Atlanta led the pack, issuing almost 5,000 permits in 2012; and then came Charlotte and San Jose at about 4,200 units.

“In certain markets, we are seeing more multifamily construction than single-family construction,” Deutch said. New York leads that group, but there is always more multifamily than single-family built in New York. Nevertheless, this list is a long one, including such markets as Los Angeles, Dallas, Seattle, Miami, Denver, Chicago, Columbus, Baltimore, Daytona Beach and Newark-Union, N.J.

One of the big reasons for the growth, Deutch said, “is that banks are starting to loan again to multifamily. There is a lot of private equity out there because lenders realize how strong the sector is. The banks were a little nervous at first, but they opened up their lending windows for multifamily.”

Despite all the construction, “rents are still going up,” which is a positive signal for lenders, Deutch said.

With good times abounding, one would think the multifamily lending market would all be on the same wagon, but that’s not the case.

At the end of 2012, the National Multi Housing Council and National Apartment Association issued a white paper outlining key principles to stabilize financing for the multifamily sector.

The white paper makes a number of key points: the industry supports a return to a system dominated by private capital; private capital-only finance distorts the market because it mostly plays in the high-end side of top-tier markets; and Fannie Mae and Freddie Mac even out the market.

One of those private lenders in multifamily is CIT Group Inc. of New York, and Matt Galligan, group head of CIT Real Estate Finance, said his company expects to do $150 million in lending to the multifamily market in 2013.

Although CIT Real Estate does new-construction financing, Galligan has been focusing more on refinancing B-quality apartments with experienced developer/owners that are trying to upgrade to A.

“We like the fact that these apartments might trade at a 6 percent or 7 percent cap rate (capitalization rate, or rate of return on an investment property based on expected income property will generate),” Galligan said.

To which he added, “If you are going to be building new units, those are going to be Class-A; and that is where the competition is, and cap rates are at 4 percent,” which is a small return that could be endangered if mortgage rates rise even a small amount, say, 100 basis points.

Despite private equity back in the multifamily lending game, to some extent Fannie and Freddie have been the dominant players, setting mortgage rates low.

Galligan doesn’t trust the two GSEs, and believes they should not be in the multifamily market.

“They are subsidizing the multifamily lending business, causing all sorts of wildness. People are flooding the market because of below-market rates.” Galligan said. “Either do something with the GSEs or crank rates up by 200 basis points. If these things are being underwritten at a 4 percent cap rate, you now have yields at 2 percent. Then all you need is a little bit of vacancy or a decrease in reserves and you have problems.”

When I told Galligan about the John Burns numbers, he was more concerned than thrilled.

“Fourty-four markets? Let’s make the assumption there are 12 primary markets in the country, that leaves 32 other markets with a lot of new construction,” he said. “You are probably going to need $1,200 to $1,500 a month in rent to make new construction work, which is harder to get to in secondary cities. And there’s competition in those cities already. Maybe your product steals market share, but it is going to force a glut.”

He added, “At a 4 percent cap rate, all you need is rates to bounce by 100 basis points and you are going to wipe out an investor’s equity. That’s been our concern.”

The Difference between Strategy and Tactics | South Salem Realtor

Apple World

The purpose of this post is to clearly delineate the distinct differences between strategy and tactics, and show how they work in tandem for your organization.

Often, we use the terms strategy and tactics interchangeably and in a haphazard manner.  When probing at online definitions and dictionaries, they often share many of the same characteristics, making them difficult to differentiate.  Rather than debate Greek military etymology, Sun Tzu philosophy, or latest publication from the Harvard Business Press, here’s strategy and tactics delineated by their associated actions:

[The difference between strategy and tactics: strategy is done above the shoulders, tactics are done below the shoulders]

While a tweet-worthy catch phrase, this metaphor risks glib over-simplification. To explore deeper, let’s dissect strategy vs tactics in the following breakdown:

Breakdown: The Difference between Strategy and Tactics

StrategyTactics
PurposeTo identify clear broader goals that advance the overall organization and organize resources.To utilize specific resources to achieve sub-goals that support the defined mission.
RolesIndividuals who influence resources in the organization. They understand how a set of tactics work together to achieve goals.Specific domain experts that maneuver limited resources into actions to achieve a set of goals.
AccountabilityHeld accountable to overall health of organization.Held accountable to specific resources assigned.
ScopeAll the resources within the organizations, as well as broader market conditions including competitors, customers, and economy.  Yet don’t over think it, to paraphrase my business partner Charlene Li, “Strategy is often what you don’t do”.A subset of resources used in a plan or process. Tactics are often specific tactics with limited resources to achieve broader goals.
DurationLong Term, changes infrequently.Shorter Term, flexible to specific market conditions.
MethodsUses experience, research, analysis, thinking, then communication.Uses experiences, best practices, plans, processes, and teams.
OutputsProduces clear organizational goals, plans, maps, guideposts, and key performance measurements.Produces clear deliverables and outputs using people, tools, time.

Strategy and Tactics Must Work in Tandem
These two must work in tandem, without it your organization cannot efficiently achieve goals.  If you have strategy without tactics you have big thinkers and no action. If you have tactics without strategy, you have disorder.  To quote my former business partner, Lora Cecere, she reminds me that organizations need big wings (strategic thinking) and feet (capability to achieve).

Examples:
To illustrate, here’s some specific examples across different industries of how strategic goals can be communicated with clear tactical elements, in a linear and logical order:

  • Strategy: Be the market share leader in terms of sales in the mid-market in our industry. Tactics: Offer lower cost solutions than enterprise competitors without sacrificing white-glove service for first 3 years of customer contracts.
  • Strategy: Maneuver our brand into top two consideration set of household decision makers. Tactics: Deploy a marketing campaign that leverages existing customer reviews and spurs them to conduct word of mouth with their peers in online and real world events.
  • Strategy: Improve retention of top 10% of company performers. Tactics: Offer best in market compensation plan with benefits as well as sabbaticals to tenured top performers, source ideas from top talent.
  • Strategy: Connect with customers while in our store and increase sales. Tactics: Offer location based mobile apps on top three platforms, and provide top 5 needed use cases based on customer desire and usage patterns.
  • Strategy: Become a social utility that earth uses on an daily basis. Tactics: Offer a free global communication toolset that enables disparate personal interactions with your friends to monitor, share, and interact with.

Action: Using Strategy and Tactics to advance your Organization
First, educate your staff and colleagues on the differences of terms and how they vary.  Next, ensure that all tactics align to business strategy, and all strategies take into account tactics on how they will be achieved.  Finally, cascade in all communication how strategy and tactics work in tandem, advancing how your organization can see the larger goals, and better utilize resources to achieve.

That’s my take, but please expand the conversation with your perspective, in the comments below.

Image credit: “Telescope” by Kristin Marshall, used within creative commons licensing.

New Jersey plays catch-up in foreclosure market | South Salem NY Real Estate

foreclosure-nj Joe Raedle Getty Images.JPG Foreclosures are down nationwide, but linger in New Jersey. Joe Raedle/Getty Images

Despite a drop in foreclosures nationwide, New Jersey continues to play catch-up.

A report today from RealtyTrac showed foreclosure activity dropped signnificantly as banks have been encouraged to work with homeowners to find ways to kep them in their homes or unload them through short sales, in which the property is sold for less than the debt owed on it.

Bank repossessions were down 17 percent nationally last year, according to RealtyTrac. Foreclosure filings dropped 3 percent. That represents a drop of 36 percent from a peak in 2010, the firm said.

But foreclosures surged in New Jersey by 55 percent over last year. New Jersey, along with Florida and Illinois, saw the largest increases in foreclosure activity.

So-called judicial states like New Jersey, in which the process must go through the courts, take longer to resolve cases. A backlog built up in 2011 when courts ordered the the mortgage industry to address charges the companies employed questionable procedures in order to streamline the process, often hurting homeowners.

In New Jersey, the foreclosure process can take up to three years to complete, leaving a larger than average backlog.

While foreclosure activity declined last year, the inventory of homes in some stage of foreclosure or in banks’ possession climbed 9 percent to 1.5 million homes, RealtyTrac said.

Florida accounted for the biggest share of foreclosure inventory last year, or 20 percent of the national total.
The Associated Press contributed to this report

via nj.com

3 Core Link Baiting Strategies for 2013 | Waccabuc Real Estate

The search engines are always changing, but link baiting strategies never die. Here are the three core elements of an effective link bait campaign, which will only be more vital in the year ahead:

1. Understand Shareability

strategies SEOA link is, fundamentally, really just a social share from somebody who happens to run a website. While the platform (HTML) is different, the psychological forces in play are the same. Content that goes viral on social networks will tend to attract links as well.

And, if you pay attention to social networks, you’ll notice that there are definite patterns. Most viral content has at least one of the following attributes:

It’s opinionated

The popularity of conspiracy theories on the Internet is perhaps one of the best examples of how bold opinions attract attention and propagate rapidly. A strong stance can alienate you from a large portion of your potential audience, but it can also expand your existing reach and strengthen your following. It’s probably best to stick to values you actually believe in, of course, to avoid a PR disaster at some point down the road.

It’s funny

The humor site Cracked currently has over 2.3 million Facebook likes and a Domain Authority of 88. They have accomplished this simply by collecting interesting facts and making them hilarious.

It’s insider information

The Wall Street Journal linked to WordStream, an online ad-consulting firm, because they published their own proprietary data about Google. The original source of new information tends to attract more links than the site that re-purposes it, unless they are extremely good at re-purposing content, or already have a larger following.

It’s cute

Cats rule the internet, and according to this article on the science of Internet cats, this is largely because they’re cute and vulnerable. Cute pictures and videos of babies and dogs also abound on the Web. There’s something about cuteness that demands to be shared.

It’s bizarre and quirky

Gawker hired Neetzan Zimmerman to produce the viral content that, as Gawker’s primary editor said, “for the sake of the other writers, [is] a necessary cog.” Zimmerman, who created The Daily What, says “When something goes viral, it tends to be something that is not expected to go viral.” Headlines like “This Pizza Has a Crust Made Out of Cheeseburgers,” and “Dead And Buried Hamster Emerges From Grave Alive And Well And Hungry For Brains,” tend to go viral more than what would traditionally be called “headline news.”

As Zimmerman said, A “taxidermied cat being that’s been turned into a helicopter—that’s clearly going to be successful, right? Because it’s got that element of shock, it’s got that element of a cat, you know, it’s basically just tailored to the Internet.”

It should hopefully be obvious from all of this that shareability is only one component of success. A piece of content that’s designed only to go viral is also likely to be poorly branded, irrelevant, and unlikely to lead to conversions down the road. For some more examples of successful link bait campaigns, we recommend taking a look at these 10 examples from WebPageFX.

2. Brainstorm Frequently

What should also be obvious from all of the above is that linkbait demands originality in some form. If the information isn’t new, the presentation must be. If the topic is “boring,” it takes creativity to transform it into something bizarre, quirky, or hilarious.

And while “cuteness” doesn’t necessarily demand creativity, if you keep pushing that button too often, it’s going to be seen as obvious pandering. Besides, it will still take creativity to transform a branding message into something even remotely cute.

Here are a few brainstorming tips to help you launch a successful link bait campaign:

Small groups are best

Put too many people in a brainstorming meeting and most of them won’t contribute. Groups of three to five are better for group brainstorming. In larger groups, people forget their ideas before they’re called on, and it’s difficult to get into a productive rhythm.

Individual brainstorming is a must

Some of the brainstorming should be done by individuals brainstorming alone. Many psychological experiments on the subject have demonstrated individual brainstorming sessions result in more ideas. Group brainstorming is a necessity in order make sure ideas are aligned with business goals and long-term strategy, but individual brainstorming is an important component that shouldn’t be ignored.

Try “brainwriting” instead of brainstorming

Studies have shown that this technique beats the pants off of traditional brainstorming. The process is simple. For three minutes, everybody writes at least three ideas. Then they pass their sheet to the left, read the previous ideas, and again record as many ideas as they can for three minutes. Keep doing this for either a set amount of time or until the group feels its ideas are exhausted.

Write it all down

Whether you’re brainstorming alone or in a group, write down every single idea. As we mentioned over at ProBlogger, psychology suggests that we reject creative ideas, even when we think we want them, and rationalize this by telling ourselves the idea wasn’t creative. Do not reject any idea that comes to mind. There’s plenty of time to weed through the list later.

Encourage constructive debate

This probably goes against everything you’ve ever heard about brainstorming, but the science is clear. Debate has a positive effect on brainstorming. While you should definitely record every single idea, debates paradoxically make people feel more liberated, and more comfortable sharing minority viewpoints. This allows more ideas to make their way into the discussion. Don’t get carried away with this, of course.

Mix ideas

If there is only one thing you should take away from all of this, it’s that mixing and matching ideas together is the best way to come up with new ideas. Don’t confine yourself entirely to your niche: Pull in ideas, concepts, facts, and stories from other disciplines in order to spice things up and draw analogies with your own subject matter.

Clearly, some of these tips contradict each other (debate vs. brainwriting vs. working alone, for example). Use more than one brainstorming method and measure the results. You may find that some techniques work better than others, or you may find that you need many different types of brainstorming in order to achieve the right variety of ideas.

3. Find Effective Sources of Information

Sometimes research comes before brainstorming, and sometimes it comes afterward. Both methods work fine, but result in different kinds of posts.

When the research comes first, it provides the raw material to combine and mash up into a unique idea. The advantage here is that you already have some idea of what facts and elements are going to go into the post. The disadvantage is that your ideas will be somewhat confined by the body of knowledge you’ve researched.

When the ideas come first, it forces you to stretch in your research and pull information from more unique sources. This can result in more unique ideas. The downside, however, is that you may discover  the facts contradict your original idea, and that making your idea work would simply stretch things too far.

Hopefully, it’s clear that you need both kinds of posts, and that it’s actually a good idea to do some research both before and after brainstorming in most cases.

As we said before, “insider information” is far more likely to go viral than a redundant article. You can’t always be the next Bob Woodward, but you can get your information from places most people aren’t willing to look:

Google Scholar

Peer reviewed articles and scholarly papers aren’t easy to read, but that’s precisely what makes them so useful as a source of information. There’s a lot of information contained in these texts that has never made it’s way into the blogosphere, and most of it is only “boring” because it’s presented in a very technical way. Pull out the most surprising facts and the key takeaways and you’ve got yourself some “insider” information, of a sort.

Your Client

This isn’t the first time we’ve mentioned how useful your client can be as a source of information, and it won’t be the last. Odds are your client has a proprietary database of some kind. If you can, take advantage of it as a source of raw data.

Industry Experts (and People in General)

Get in touch with experts in your niche. The well known ones can help with exposure, and the less well known source can also offer some “from the front lines” information that you can’t find anywhere else. Watch the nightly news and notice how even an interview with a random person on the street can help a bit with credibility. There’s no reason to limit sources of information to your own research. Mine people for ideas, opinions, and information. Be a journalist.

The Library

Yes, it still exists. Believe it or not, this is also a great place to look if you want to find information that’s never made it’s way online. Yes, this still happens sometimes!

Anything That Could be Considered “Raw Data”

Whether it’s government statistics or an industry survey, raw data that’s never been turned into an article or blog post is one of your most useful “insider sources.”

Other Disciplines

We might be repeating ourselves a bit by saying this, but we can’t emphasize it enough. While the other research strategies demand looking through dense material, this one allows you to skim lighter blog posts and news articles and use them as insights for your own field. This makes the research part easier, but the creative part becomes more involved. This is the tradeoff.

Conclusion

To produce linkbait, you need to “get” the Internet, and understand why things go viral. It takes a comprehensive brainstorming strategy and a keen understanding of where to find original data in order to pull this off. The sweet spot between these three strategies is the launching pad for your most successful link bait campaign.

Did you learn anything new from this post, and do you have something to add? Let’s keep this going in the comments, and please pass this along if you liked our contribution. Thanks!

Image Credit: Shutterstock / Melpomen

via searchenginejournal.com

30-Year Fixed Mortgage Rate Dips Slightly | Waccabuc NY Homes

Mortgage rates for 30-year fixed mortgages fell this week, with the current rate borrowers were quoted on Zillow Mortgage Marketplace at 3.26 percent, down from 3.33 percent at this same time last week.

After peaking at 3.35 percent on Wednesday, the 30-year fixed rate hovered between 3.28 and 3.33 percent over the remainder of the week before dropping to the current rate this morning.

“Rates are down slightly from last week’s 16-week high as optimism about an improving economy began to wane after successful fiscal cliff negotiations,” said Erin Lantz, director of Zillow Mortgage Marketplace. “Although there is a fair amount of economic news scheduled this week, we don’t expect any surprises that would move rates significantly.”

Additionally, the 15-year fixed mortgage rate this morning was 2.59 percent, and for 5/1 ARMs, the rate was 2.44 percent.

What are the rates right now? Check Zillow Mortgage Marketplace for up-to-the-minute mortgage rates for your state.

*The weekly rate chart illustrates the average 30-year fixed interest rate in six-hour intervals.