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Short Sales Overtook REO Sales in Q3 | Chappaqua Real Estate

For the first time ever, sales of properties in some stage of foreclosure (pre-foreclosure sales) outnumbered sales of bank-owned properties (REO) in the third quarter, as short sales continue to gain market share at the expense of REO and sales of completed foreclosures at auction.

Pre-foreclosure sales, largely short sales, increased 22 percent from the second quarter and were also up 22 percent from the third quarter of 2011, while the average sales price decreased 3 percent from the previous quarter and was down 5 percent from a year ago, according to RealtyTrac. A total of 98,125 pre-foreclosure sales occurred during the quarter compared to a total of 94,934 REO sales.

By contrast, REO sales increased 19 percent from the previous quarter but were still down 20 percent from the third quarter of 2011. A total of 193,059 U.S. properties in some stage of foreclosure or bank-owned (REO) were sold during the third quarter, an increase of 21 percent from the previous quarter, but still down 3 percent from the third quarter of 2011. Foreclosure-related sales accounted for 19 percent of all U.S. residential sales during the third quarter – down from 20 percent in the previous quarter but the same level as in the third quarter of 2011.

Pre-foreclosure properties sold for an average price of $191,025 in the third quarter, down 3 percent from the second quarter and down 5 percent from the third quarter of 2011. The average sales price of a pre-foreclosure residential property in the third quarter was 27 percent below the average sales price of a non-foreclosure residential property, up from a 25 percent discount in the previous quarter and a 19 percent discount in the third quarter of 2011.

The average REO sales price decreased 7 percent from the previous quarter but was still up 7 percent from the third quarter of 2011. REOs sold for an average price of $161,954 in the third quarter, down 7 percent from the second quarter but up 7 percent from the third quarter of 2011. The average sales price of a bank-owned home in the third quarter was 38 percent below the average price of a non-foreclosure home, up from a 33 percent discount in the second quarter but down from a 39 percent discount in the third quarter of 2011.

Homes in foreclosure or bank owned sold at an average price that was 32 percent below the average price of a home not in foreclosure, up from a 29 percent discount in the second quarter and a 31 percent discount in the third quarter of 2011.

Short sales of properties not in the foreclosure process increased 15 percent from the previous quarter and were up 17 percent from the third quarter of 2011. These non-foreclosure short sales accounted for an estimated 22 percent of all residential sales, bringing the total distressed sale share to an estimated 41 percent for the quarter. Non-foreclosure short sales prices in the third quarter fell short of the total amount of loans outstanding by an average of $82,312 per short sale. For all short sales, including non-foreclosure and in-foreclosure properties, the sales price was short of combined loan amounts by average of $94,896 per short sale.

“The shift toward earlier disposition of distressed properties continued in the third quarter as both lenders and at-risk homeowners are realizing that short sales are often a better alternative than foreclosure,” said Daren Blomquist, vice president of RealtyTrac. “However, the scheduled expiration of the Mortgage Forgiveness Debt Relief Act at the end of this year could stifle this trend toward short sales. If that law expires as scheduled, homeowners who agree to a short sale could see their income tax jump significantly because the portion of the unpaid loan balance not covered by the short sale proceeds will be considered taxable income in many cases.

Pre-foreclosure homes that sold in the third quarter took an average of 359 days to sell after starting the foreclosure process, up from an average of 319 days in the previous quarter and up from an average of 318 days in the third quarter of 2011.

Third parties purchased a total of 94,934 bank-owned (REO) residential properties in the third quarter, an increase of 19 percent from the previous quarter but down 20 percent from the third quarter of 2011. REO sales accounted for 10 percent of all residential sales during the quarter, the same as in the second quarter but down from 11 percent of sales in the third quarter of 2011.

Separately, Lender Processing Services reported yesterday that foreclosure starts declined significantly foreclosure starts over the last two months – down 21.9 percent in October and almost 48 percent on a year-over-year basis – leading to a nearly 7 percent drop in overall foreclosure inventory.

“LPS observed a drop-off in foreclosure starts in September that accelerated in October,” Blecher said. “This decline coincided with the implementation of new procedural changes outlined in the National Mortgage Settlement, which requires, among other things, that mortgage servicers provide written notice to borrowers 14 days prior to referring a delinquent loan to a foreclosure attorney. This has resulted in what is likely a temporary slowdown in foreclosure starts that we do not believe is indicative of a longer-term trend. However, we will continue to monitor this activity closely in the coming months.”

The LPS Mortgage Monitor reported that September loan originations were down, likely due to the shortened number of business days in the month. However, prepayment speeds (historically a good indicator of refinance activity) rebounded in October, and as such, LPS expects to see overall origination numbers pick up for that month. LPS also found that mortgage spreads remain elevated, averaging 197 basis points above the 10-Year Treasury rates, with interest rates consistent across all product types.

Get the upper hand on clutter | Chappaqua Homes

https://secure.sierraclub.org/site/Ecommerce/611780084?VIEW_PRODUCT=true&… target=”_blank”>”Material World: A Global Family Portrait”</a> Sierra Club Books. ” width=”225″ />Photo of a Tokyo family’s possessions from “Material World: A Global Family Portrait” Sierra Club Books.

I have spent a lot of time in the past year getting rid of stuff. By stuff, I mean things that I bought or was given that I no longer use, or never used at all.

There is a lot less stuff in my home now than there was at the beginning of the year. The less I have, the more convinced I become that having less is better.

Most people have clothes that they have outgrown, knickknacks that they hate, and items that they bought for the kitchen that just didn’t work out. Friends and relatives give us gifts that we don’t know what to do with. But we can’t bring ourselves to get rid of them, and over the years it accumulates. We own things that we have forgotten about.

Connecticut real estate broker, trainer and Inman Real Estate Connect ambassador Linda Davis started a group on Facebook for people who want to de-clutter. As a Realtor, Linda worked with people who have to deal with a lot of stuff when they move. The experience started her on a journey to get rid of clutter.

Davis encourages people to remove a little clutter from their lives each day. Hundreds have joined her group, actively participating and encouraging each other to keep going. The group has changed lives. Each day Linda photographs something that she got rid of, and asks us what WE got rid of. Just one thing at a time makes the process less overwhelming.

My life experience had been different than that of many of my friends, family and clients. I have lived on the same block for 31 years and in the same house for the last 23 years. If we had moved more, maybe some of our stuff would have gotten lost.

In those 23 years the kids have moved in and out a few times, leaving some stuff in the basement. Other family members have downsized and dropped stuff off. Then of course there is the stuff we accumulated all on our own.

Most of us don’t even realize that we struggle with stuff everyday. It is in our way and on our minds. We work around it and mostly stop noticing it. It takes up space, and we tend to pay for bigger spaces so that we have a place for it all. It is a distraction that takes up mental and emotional space in our lives.

I have watched my clients struggle with excess stuff when it’s time to move, and it isn’t a pretty picture. They put it in boxes and haul it with them to a bigger house which they now need because they have so much stuff.

Have you ever tried to sell a house that is full of stuff? I have worked with seniors, some who have lived in the same homes for more than 50 years. The stuff they couldn’t part with ends up in basements and attics until it is time to move and then it ends up being given away.

The process is painful for them as they resent the disruption in their lives. Even though they have not seen or used an item for 20 years, they are often reluctant to part with it.

We all think this will never happen to us, but it does — consistently and predictably. How many things can we enjoy, store or keep track of? There are limits.

I don’t want more, I want less. Most days it seems that I am fighting against a kind of natural flow as I try to reduce the amount of stuff coming in the house, and get more stuff out of the house.

Every month this past year I brought stuff to the local thrift shop. I send stuff to the recycle center, and what they won’t pick up I can usually drop off. I have been able to sell a few things here and there, and being the wonderful mother that I am, I even managed to send a few things home with my children.

I am becoming an expert on the most responsible ways to get rid of stuff. I know that there are people who can use my stuff, and I am better able to help my clients and make recommendations regarding unwanted stuff.

Nothing creates clutter like a real estate office in the home. New technology makes what used to be state-of-the art equipment obsolete. I found boxes full of stuff that I’ll never use again. I even found old carbon real estate forms and business cards with out-of-date contact information on them. Not to mention the Palm Pilot that I have no use for, or my very first cell phone.

Having empty drawers in my office is very cool. Being able to put everything away means that there are no more stacks on the floor. I have room in my file cabinets and even on my desk and no plans to fill the space with new stuff.

Having less in my office makes for a better and more organized work environment. I resist the urge to bring anything into my office that I don’t need, and I am still finding items that I need to get rid of. Why do I have three staplers? I can not remember the last time I used a stapler.

If you have too much clutter in your life — or maybe just in your office — spend 2013 dealing with one item at a time until you have an empty drawer or two of your own. It is very rewarding and maybe even life changing.

Teresa Boardman is a broker in St. Paul, Minn., and founder of the St. Paul Real Estate blog.

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Copyright 2012 Inman News

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8 Tips to Convert Shoppers into Buyers with Video Online | Chappaqua Homes

If you’re a retail outlet looking to boost e-commerce sales, you might have heard of this online video thing.  Video enhances a potential buyer’s experience and makes them more likely to stick around.  According to a recent white paper published by leading video solutions provider Ooyala, retail site visitors who watch video are 64% more likely to buy than others.  Ooyala has created a list of 8 tips to follow when creating content for your retail site, complete with examples of companies who have used video to their advantage.

8 Tips & Recommendations to Convert Buyers

Ooyala found that retail site visitors who watch video stay on the website two minutes longer than non-viewers, so if you’re a retail site you want to make your video count.  Which is what the first tip is.

1. Make Content Count

Ooyala gives examples of three different kinds of content that worked extremely well for some well-known retail outlets.  The following videos are all on these companies’ sites, but they all have YouTube channels as well, so I’m using those for embeds here.  Let’s take a look:

  • Branded Lifestyle Content

This is one of our most well-recognized forms of video from brands.  Red Bull does it extremely well.  In this study, Ooyala singles out Vans and Whole Foods.  Whole Foods set up a branded Facebook page with clips featuring health and sustainability tips.  Sportswear retailer Vans went the “extreme sports” route, creating an entire website full of content.  Here’s an example:

YouTube Preview ImageYouTube Preview Image

  • In-Motion How-Tos

This is where you take your knowledge on a particular category and create a video providing consumers with information, rather than making a selling attempt with your product.  Trusting the consumer to make the right choice (buying your product) by building trust with them is an effective way to create a relationship with potential buyers.  Outdoor equipment suppliers Cabela’s and REI were mentioned here.  Here’s REI showing how to hoist a backpack:

YouTube Preview ImageYouTube Preview Image

  • Customer Support

This is what you do for people who have already bought your product, building trust by being helpful and knowledgeable about the product they now own.  Undoubtedly, many will have questions about how to operate a piece of equipment and having a video handy is the best way to demonstrate a product’s use.  Singled out here were Dell and Virgin Mobile.  Virgin Mobile has videos ready for a variety of topics involving their phones, including this humorous one about how to set up voice mail:

YouTube Preview ImageYouTube Preview Image

2. Capture Consumers on the Move

Basically, make sure your video can be viewed across all devices.  People are shopping more and more using a smartphone or tablet these days so your video being able to be seen on all of these mobile devices is important.

3. Be Discoverable

Nearly half of the retail sites out there don’t index their videos at all, which is a missed opportunity.

4. Be Shared and Be Seen

Consumers share video more than they share articles or web pages, mainly because video rocks.  Also, most video destination sites, especially YouTube, make your videos embeddable and they can be shared across Facebook and Twitter.  And with a site like YouTube, you can use YouTube Analytics to see where your videos are being shared and what is resonating with viewers.

5. Find Gems in Emerging Markets

The other thing proper analytics can tell you is if your video is doing well in an unexpected market.  Maybe you’re in Los Angeles and your video is super popular in Minneapolis.  Now you can direct market to towns that have already shown interest in your videos and increase your business presence.

6. Learn the Secrets that Keep Them Coming Back

Reviewing your videos’ performance, what about it has resonated with your fans?  Is it because it’s funny, do they respond to shorter videos better than longer ones?  Ooyala mentions something that is a bit of a difficult balance: branding is important, but over-branding can ruin the video.  They say that consumers are 4 times less likely to share a video with over-branding.

7. Click to Convert

Putting a “click to purchase” button in your video gives it interactivity: if people are enjoying the video, they have easy access to buying the products right there in the video.  And of course, YouTube has just recently begun to allow associated website annotation links in their videos, and they’ve been playing around with a beta for clickable ads for the very products that are in videos.  Ooyala warns that you should keep such buttons out of the way or be able to be hidden so that it won’t interrupt the viewing experience.  I like this statement:

The more freedom of choice you give your customers, the more free they will feel to buy.

8. Let a Partner Handle the Heavy Lifting

This is Ooyala’s sales pitch, as they tell you that a service like them allows you to focus on creating content while they focus on the video platform, analytics, etc….  It’s one of the hardest things for people to do when they get into video.  Surely the great content will be found on its own.  Well, it won’t.  So if you have the means, hiring a service to focus on all the post-publishing work can be a big help.

You can download the full whitepaper from Ooyala here.

Asking prices stay strong into autumn | Chappaqua NY Real Estate

Asking prices for homes on real estate portal Trulia’s website were up 3.8 percent in November from a year ago, the largest year-over-year increase since the housing recession began, according to a monthly report from Trulia.

In addition to posting annual gains, asking prices showed strength going into the seasonal autumn slowdown in sales, with list prices for the three months ending in November up a non-seasonally adjusted 0.8 percent from the previous quarter, Trulia said.

The report, which covers for-sale and for-rent properties listed on Trulia through Nov. 30, showed that asking prices on for-sale homes posted annual gains in 76 of the 100 largest U.S. metro areas. When foreclosures were excluded from the equation, list prices were up 4.3 percent for the year.

November 2012 Trulia list price summary

Time periodChange in list pricesChange in list prices, excluding foreclosuresNo. of 100 largest metros with list-price increases
month-over-month, seasonally adjusted0.8%0.8%Not reported
quarter-over-quarter, seasonally adjusted2.2%1.6%70
year-over-year3.8%4.3%76

Source: Trulia

Price gains, though significant overall, are more pronounced in some metros than others, the report noted. Many large metros fared better than smaller ones.

“Prices are rising faster than at any point since the bubble burst, but the price recovery is becoming more uneven,” said Jed Kolko, Trulia’s chief economist, in a statement. “Price gains are starting to waver in smaller markets.”


Jed Kolko

Atlanta, Riverside-San Bernardino, Calif., and Sacramento, Calif., are three metros hard hit by the housing collapse that saw significant quarter-over-quarter growth in November to match the sustained growth seen by Phoenix, Las Vegas and Miami over the course of the year.

Asking rents were up, too, in November, jumping 5.6 percent from a year ago. But asking-price gains, the report showed, are now greater than rent-price gains in the 25 largest rental markets, including Denver, Seattle and San Francisco.

Metros* with largest increases in asking rent, November 2012

RankMetroChange in asking rents from a year ago
1Houston16.8%
2Oakland, Calif.11.6%
3Miami10.8%
4Denver9.0%
5Philadelphia8.9%
6Seattle8.3%
7Minneapolis-St. Paul, Minn.-Wis.7.8%
8Chicago6.9%
9New York, N.Y.-N.J.6.6%
10San Francisco5.8%

*Among the 25 largest rental markets.

In L’Aquila, Italy, Lessons for Rebuilding From Storm | Chappaqua Realtor

That earthquake, in April 2009, killed hundreds and left tens of thousands of L’Aquilans homeless, shuttering the city’s graceful and extensive historic center, which was its cultural and economic heart. “Temporary” housing was constructed: “new towns,” as Italy’s prime minister then, Silvio Berlusconi, boasted about the sad, isolated, cramped and costly apartments he ordered for displaced L’Aquilans along nowhere stretches of the city’s outskirts, cut off from mass transit and civic life. There was no infrastructure created or public consensus reached about combating sprawl, or what to save or sacrifice and how.

Since then Italian officials have kept promising to restore the city to its former self, but fewer than a dozen buildings have so far been repaired among the hundreds damaged in the center, which is a virtual ghost town. Never a tourist mecca, despite its pretty churches and squares, L’Aquila was a working town of some 75,000, home to a university and to many families with local roots dating back to the Middle Ages.

These days, tourists arrive to gawk at the rubble. Ruin porn has become the new local industry.

A sign of progress came in October, when President Giorgio Napolitano arrived for the opening of a new concert hall designed by Renzo Piano in a park in central L’Aquila, one of the few urban initiatives since the quake. Mr. Napolitano criticized the “new towns” for diverting attention and resources from the primary challenge of returning life to the city center. The regional government has now gained control over recovery efforts from a succession of failed authorities in Rome. But magical thinking remains a problem for residents and politicians, as usual after a disaster, while memories of the quake are fading outside the region.

What’s the relevance for the New York area? Notwithstanding the need for big change and straight talk in the face of hard science about rising sea levels and increasing storms, public officials have mostly followed the Italians’ lead, promising devastated homeowners to reconstitute ravaged neighborhoods in harm’s way. They have all but conceded that a policy of retreat and relocation is a political impossibility.

I’ve gone to L’Aquila several times since the quake, the first a couple of days after it struck, most recently before the opening ceremony for Mr. Piano’s hall, to see it under construction and to speak with residents and the city’s planning chief, Pietro Di Stefano. “We went into a labyrinth of the absurd,” he told me. “We needed a new plan.”

Then he talked about retrofitting a few buildings here and there in the city center. He seemed resigned to the futility of arguing for the demolition of homes and for new construction while owners were still petitioning the state for money. That didn’t sound like much of a plan to me.

I mentioned Mr. Piano’s project. Conceived by the architect and his friend Claudio Abbado, the conductor, as a way to bring some culture and night life back to the center, the 240-seat concert hall links multicolored cubes, pavilions made of spruce from Trent, the northern Italian province that sponsored the project. (The hall was not quite finished for the opening ceremony and, as so often happens in Italy, was shut right afterward. There are supposedly plans to finish it and organize concerts next year.)

An anomaly in L’Aquila’s historic city, the hall was partly engineered as a prototype for the sort of recyclable, quake-resistant wood construction that could handsomely and cheaply replace damaged stone houses in the center, so people might finally move back there. Per square foot, the hall cost a fourth of what the “new towns” did.

At the suggestion of wood buildings, Mr. Di Stefano stiffened. He started to pet the nearest stone building as if it were the family Labrador. “Impossible,” he said.

“This is a city of stone,” he insisted. “These homes were built by families here over hundreds of years, and they have their histories. What would Florence be without Giotto, or Pisa without the tower? The buildings are who we are.”

Is a city the assortment of its buildings or the life that happens in and around them? L’Aquila has fine architecture, including Baroque churches and early-20th-century Rationalist office blocks. These could be retrofitted and reopened, and a couple already have been. But it is really the public spaces — the streets and piazzas — that make the city special. Officials charged with saving the center, fixated on buildings instead of urbanism, seem not to realize this, and let L’Aquila die a little more each day.

And so now, in the main square, old men gather on sunny mornings, driving from miles away. They stroll the main street, as they did before the quake, then scatter by day’s end to their far-flung new homes. Antonio Antonacci, a retired lawyer, chatted in the empty Piazza Duomo with three friends when I stopped by.

“It’s still the only city center we have,” he told me.

New Yorkers aren’t particularly married to old stone houses. The city has a history of audacity and adaptability. Both have fueled the region’s prosperity. But heedless planning in the last century has also made many people skeptical about large-scale infrastructural change.

That said, some storm-ravaged New York homeowners have already made known that they’re contemplating resettling in safer neighborhoods, and Shaun Donovan, the United States secretary of housing, whom President Obama appointed to spearhead federal relief efforts after Hurricane Sandy, seems open to big ideas. A calamity can also be an opportunity, for ambitious politicians, and not least for a second-term president, now liberated to think decades ahead.

Although L’Aquila may be unlike New York in most crucial ways, its last few years suggest that a disaster doesn’t just destroy homes and take lives. It tests a city’s, and a nation’s, imagination and capacity to change.  

Follow Michael Kimmelman on Twitter, @kimmelman.