Tag Archives: Westchester Real Estate

‘Long way to go before the caldron bubbles over’: CoreLogic | Cross River Real Estate

Analytics firm CoreLogic argued in its latest MarketPulse report that the housing market is not on the road to bubble territory, and rising interest rates will only make it less likely for it to head in that direction.

“Economists are often referred to as dismal scientists because of their emphasis on the downside of economic events. However, CoreLogic is prepared to offer an optimistic opinion about the U.S. housing market,” read the report. “CoreLogic does not believe the market is experiencing a housing bubble, either nationally or even in some of the fastest-growing markets.”

The firm also said that housing today remains highly affordable relative to historical norms.

“For housing price affordability to return to the average level that we saw in the years between 2000 and 2004, either home prices would have to rise an additional 47 percent or interest rates rise to 6.75 percent,” CoreLogic said.

“So while the bubble opinions swirl like the words of Shakespeare, ‘Double, double toil and trouble/Fire burn and caldron bubble,’ this housing market still has a long way to go before the caldron bubbles over,” the report later added.

– See more at: http://www.inman.com/wire/long-way-to-go-before-the-caldron-bubbles-over-corelogic/#sthash.SYMVwu20.dpuf

Real estate horror continues with ‘zombie foreclosures’ | Chappaqua NY Real Estate

Joseph Keller doesn’t expect he’ll live to see the end of 2013. He blames the three story house at 190 Avondale Avenue.

Five years ago, Keller, 10 months behind on his mortgage payments, received notice of a foreclosure judgment from JP Morgan Chase. In a few weeks, the house would be put up for auction at a sheriff’s sale.

The 58-year-old former social worker and his wife, Jennifer, packed up their home and moved. Joseph thought he would never have anything to do with the house again. And for about a year, he didn’t. Then it started to stalk him.

He had become caught up in a little-known horror of the U.S. housing bust: the zombie title. Six years in, thousands of homeowners are finding themselves legally liable for houses they didn’t know they still owned after banks decided it wasn’t worth their while to complete foreclosures on them. With impunity, banks have been walking away from foreclosures much the way some homeowners walked away from their mortgages when the housing market first crashed.

First, in 2010, the county sued Keller because the house, already picked clean by scavengers, was in a shambles, its hanging gutters and collapsed garage in violation of local housing code. Then the tax collector started sending Keller notices about mounting back taxes, sewer fees and bills for weed and waste removal. And last year, Chase’s debt collector began pressing Keller to pay his mortgage, which had swollen, with penalties and fees, from $62,100.27 to $84,194.69.

The worst news came last January, when the Social Security Administration rejected Keller’s application for disability benefits; the “asset” on Avondale Avenue rendered him ineligible. Keller’s medical problems include advanced liver disease, hepatitis C and inactive tuberculosis. Without disability coverage, he can’t get the liver transplant he needs to stay alive.

Real estate Foreclosure: Joseph Keller and his wife Jennifer stand on the porch of their abandoned house in Columbus, Ohio, September 30, 2012. IMAGE

 

 

Real estate horror continues with ‘zombie foreclosures’.

More Britons Expect House Prices to Rise Next Year | Armonk NY Real Estate

Britons’ confidence in the housing market has risen, with more consumers forecasting price gains than declines in the next year, a survey by Halifax showed.

A gauge of the housing market measuring value expectations climbed to 40 in June from 33 in March, the mortgage unit of Lloyds Banking Group Plc said in an e-mailed statement in Londontoday. June’s reading was the highest since Halifax began the quarterly survey in April 2011. Fifty-two percent of respondents predict prices will advance over the next 12 months, with 12 percent forecasting decreases, it said.

“Sentiment regarding the outlook for house prices has improved markedly over the past quarter, continuing the trend seen since late 2012,” Halifax economist Martin Ellis said in the statement. “Nonetheless, the market still faces substantial headwinds with, for example, house prices remaining above the historical average in relation to earnings. Such factors are likely to prevent a sharp acceleration in house prices.”

The survey chimes with recent housing data that have shown an improving market. Reports from Hometrack Ltd., Acadametrics Ltd., and Nationwide Building Society all showed values rose in June as the Bank of England’s Funding for Lending Scheme and the government’s Help-to-Buy program eased the supply of credit.

 

More Britons Expect House Prices to Rise Next Year – Bloomberg.

Another ‘bubble’ in housing is unlikely | Katonah Real Estate

Home sales and prices are increasing so dramatically, many people are wondering if another “bubble” situation might be just around the corner.

 

Most housing industry leaders and economists doubt a housing bubble will resurface in the foreseeable future. Despite double-digit price gains in many markets, the housing outlook is bubble free for now as the sector recovers for the next several years, experts say.

 

Leading off a panel of economists addressing a gathering of journalists, Lawrence Yun, chief economist for the National Association of Realtors, said he expected a multiyear recovery as home price growth lifts more owners out of underwater situations and helps the economy.

 

“Housing wealth is easily offsetting the negative effect of sequestration,” Yun told the National Association of Real Estate Editors. But the normally housing bullish economist tempered his optimism because double-digit increases in home prices are outpacing income growth, it was noted in a Real Trends report.

 

“Any time that happens over a sustained period it is an unhealthy state for the country,” Yun added.

 

The Wall Street Journal posted the following statement in explaining why the market might look as though another bubble might be emerging:

 

“The fact that homes are selling quickly is in large part due to supply and demand. The past five years have seen subdued construction activity and many homes either tied up in foreclosure or ‘underwater’ due to negative home equity, all adding up to constrained supply.”

 

Q: Are mortgage interest rates still rising?

 

A: Yes, they are rising dramatically. The largest weekly increase in more than 26 years was announced by Freddie Mac on June 27. Rates on 30-year, fixed-rate home loans spiked 0.53 percentage points to an average of 4.46 percent during the week.

 

The 30-year loan, which stood at 3.35 percent as recently as early May, is at its highest level since July 2011, it was reported by CNN Money. Rates for 15-year loans, popular with homeowners refinancing their mortgages, jumped 0.46 percentage points to 3.5 percent.

 

An extra percentage point will cost homebuyers with 30-year, fixed-rate mortgages $56 more a month for every $100,000 they borrow, it was noted.

 

Q: Will rising mortgage rates make homes less affordable?

 

A: The steady increase in mortgage rates in recent weeks, coupled with rising home prices, may dampen demand, but the upward movement in rates is not enough to make housing unaffordable to median income earners, according to Freddie Mac’s economic and housing outlook for June.

 

In fact, Freddie’s analysis showed mortgage rates would have to climb to nearly 7 percent before a median priced home is no longer affordable to median income earners in most parts of the country.

 

Another ‘bubble’ in housing is unlikely.

The Real Estate Market Meets the Internet: How Zillow Came to Be (Z) | South Salem Real Estate

The Fool is exploring Seattle. Today, CEO Spencer Rascoff introduces us to Zillow  (NASDAQ: Z  ) , telling us how the online home and real estate marketplace works, what he considers its greatest strengths, and what investors should know about it.

 

Spencer recounts how the idea for Zillow was born of his time at Expedia, and how far the company has come since then. He also offers some insight on what investors should look for when evaluating any tech company.

 

The Real Estate Market Meets the Internet: How Zillow Came to Be (Z).

Rooftop solar takes off across California as costs come down | Bedford Hills Real Estate

California’s groundbreaking efforts to encourage homeowners and businesses to install rooftop solar panels were so successful in 2012 that the program is now effectively winding down, according to a new report.

A record 391 megawatts of solar power were installed statewide in 2012, a growth of 26 percent from 2011, according to a report by the California Solar Initiative released Wednesday.

“The program has made solar affordable for ordinary Californians,” said Susannah Churchill of the San Francisco-based solar advocacy group Vote Solar. “Solar is a classic California success story.”

In January 2007, California launched an unprecedented $3.3 billion effort to install 3,000 megawatts of new solar over

the next decade and transform the market for solar energy by reducing the cost of solar-generating equipment.

One megawatt is enough to power 750 to 1,000 homes. But because the sun doesn’t shine all the time, solar industry experts say that one megawatt of solar can power about 200 households.

The California Public Utilities Commission’s California Solar Initiative, known as CSI,provides rebates for residential and commercial customers of the state’s three large, investor-owned utilities: Pacific Gas & Electric, Southern California Edison and San Diego Gas & Electric.

The initiative’s road map calls for 1,750 new megawatts of solar power to be installed on residential and commercial roofs in the state by

 

 

Rooftop solar takes off across California as costs come down – San Jose Mercury News.

World’s biggest offshore wind farm with 300 turbines | Pound Ridge Real Estate

Plans to create the world’s biggest offshore wind farm off the coast of Britain have been approved.

Work on the massive Triton Knoll site – 288 giant wind turbines off the Lincolnshire coast – can now begin after the £3.6bn project was given the go ahead.

It will dwarf Britain’s current largest offshore facility, the 175-turbine London Array in the Thames Estuary unveiled last week by David Cameron.

Go-ahead: An offshore wind farm off the coast of Skegness in Lincolnshire

Go-ahead: An offshore wind farm off the coast of Skegness in Lincolnshire

When complete, the new giant windfarm will generate 1.2 gigawatts of electricity, enough to power for 820,000 homes.

But critics say it will not come without a cost, as offshore power is currently subsidised by the taxpayer at three time the wholesale price of conventionally-produced electricity.

And the scheme is not without controversy. As part of the project, energy giant RWE are proposing building a substation the size of 30 football pitches connected to the offshore turbines, in the Lincolnshire countryside.

The proposal was met with anger by some residents, who have accused the company of trying to turn the area into an industrial site.

Others said it would drive down house prices The Government also approved a second scheme yesterday, in Wales. Energy company Vattenfall confirmed it is investing £400 million in England and Wales’ largest onshore wind farm at Pen y Cymoedd, South Wales.

The scheme, which will consist of 76 turbines, will begin next year, with the first power being generated for the grid in 2016.

Hundreds of jobs are expected to be created in the construction phase of both projects.

Plans: Map showing where the massive Triton Knoll wind farm will be built off the Lincolnshire coastline

Plans: Map showing where the massive Triton Knoll wind farm will be built off the Lincolnshire coastline

Tensions between energy firms and residents have been growing over the past two years as applications have soared.

There are currently more than 3,000 onshore wind turbines in Britain, with a further 2,500 approved or being built.

Despite increasing public anger at the subsidies paid for green power, ministers have shown no sign of changing course.

Last month , Ed Davey, the Energy Secretary, promised guaranteed prices – fixed at up to triple the market rate – for electricity from ‘green’ technologies such as wind, solar and biomass until 2019, in a bid to expand the sector.

Ministers say the financial incentive will make Britain an attractive place to invest and transform our energy supply, and are hoping that 30 per cent of power produced by 2020 will be from renewables.

Onshore wind farms are set to be given a minimum of £100 per megawatt hour – double the current wholesale rate of £50 – while offshore wind will receive a staggering £150.

The difference between the wholesale price and the agreed rate will be met by the taxpayer.

In February, more than 100 Tory MPs criticised the Government’s plan to introduce more wind farms.

Dozens of backbenchers wrote to David Cameron to demand that the £400million in subsidies paid to the ‘inefficient’ industry each year is ‘dramatically cut’.

Director of offshore renewables at industry body RenewableUK Nick Medic said the approval for the new Triton Knoll offshore wind farm was a ‘historic step’ for the industry.

He said: ‘It is the biggest project consented so far anywhere in the world, and shows the UK’s offshore sector maturing to take on new challenges of scale.

‘Following world leading projects such as the London Array, opened last week, Triton Knoll will demonstrate what offshore wind can do for the UK on a grand scale.

‘The planning consent today keeps the country firmly at the forefront of offshore wind development and will help secure up to 20 per cent of electricity from offshore wind per year by 2020.’

Read more: http://www.dailymail.co.uk/news/article-2361335/Worlds-biggest-offshore-wind-farm-300-turbines-built-Lincolnshire.html#ixzz2YvNXPgjE
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World’s biggest offshore wind farm with 300 turbines will be built in Lincolnshire | Mail Online.

South Salem sales up 7% – Prices down 16% | RobReportBlog

South Salem NY Real Estate ReportRobReportBlog
20136 months ending 7/82012
29Sales27
$500,000.00median sold price$600,000.00
$180,000.00low sold price$185,000.00
$925,000.00high sold price$1,325,000.00
2404average size2688
$237.00ave. price per foot$239.00
211ave days on market254
$546,043.00average sold price$629,575.00
96.26%ave sold to ask94.01%

 

 

South Salem sales up 7% – Prices down 16% | RobReportBlog.

Why Home-Price Gains Will Slow Amid Higher Mortgage Rates | Waccabuc Real Estate

Home prices moved up at a torrid pace during the first half of the year, but don’t expect them to keep pace during the second half.

The big spike in mortgage rates over the past two months has reset the housing market and figures to take a bite out of demand at a time when more sellers have listed homes for sale and when price gains have tested investors’ purchasing appetites.

Mortgage rates, which stood at a low of 3.59% at the beginning of May, jumped to 4.58% during the last week of June, according to the Mortgage Bankers Association. Rates rose even more last Friday, after a strong jobs report firmed up investors’ expectations that the Federal Reserve would begin to curtail its bond-buying program later this year.

A rule of thumb holds that every one percentage point increase in interest rates reduces affordability by 10%, so the recent move in rates just made homes about 10% more expensive to buyers who need to finance their purchase.

“There’s no one in the business right now who doesn’t think the market hasn’t taken a step back. The evidence is all around us,” said Glenn Kelman, chief executive of real-estate brokerage Redfin. The number of Redfin customers who requested tours during the last week of June was down 5% from the average for the previous three weeks, while the number of customers making offers was down by 8% and the number of new customers edged down by 2%.

Here’s a look at seven areas to watch during the second half of 2013:

1. What will higher mortgage rates do to housing demand? Rates are now at their highest level in two years. For borrowers with less than a 5% down payment, the effective mortgage rate is at its highest level since mid-2009 because loans backed by the Federal Housing Administration now carry higher annual insurance premiums.

Economists say that even at a 4.5% or 5% mortgage rate, housing is still affordable by historical standards. Analysts at Bank of America BAC +1.05% Merrill Lynch note that prices would have to rise by 20% or rates would have to climb to around 6% before housing would look unaffordable. Also, they say that housing demand is shaped heavily by expectations of future affordability. That is, homeowners may be more eager to buy at a 4.5% mortgage rate when prices are rising than they were two years ago, when rates were lower but demand was soft because prices were falling.

But the bad news is that the level of rates may matter less than the speed of any increase. A sharp spike in interest rates—even to a level that is still historically low—represents a large payment shock to home shoppers. Many buyers shop for a home based on their monthly mortgage payment, which just shot up. The monthly payment on a $200,000 home with a 10% down payment just went up by $100 every month, almost a 13% increase. The monthly cost of a $450,000 home just went up by $250.

2. Don’t higher mortgage rates help in the short run by bringing more buyers off the fence? Not really. There’s little evidence that higher rates create new demand, even if they accelerate purchases from households that had already decided to purchase. Pending home sales in May rose sharply by 6.7% from April to their highest level in six years, but that spike could easily be reversed in June and July.

 

Why Home-Price Gains Will Slow Amid Higher Mortgage Rates – Developments – WSJ.

Peekskill’s Black Bear Gains Fame In…. Texas? | Katonah Real Estate

Peekskill’s small-townbear got some national attention this week.

The story of a black bear being sighted in the city was picked up by the Houston Chronicle, which relayed the tale of the bear to its Texas readers.

A black bear was spotted in the city Tuesday.

“Peekskill police are in the process of coaxing a nuisance black bear off city streets and into the woods by Depew Park and Blue Mountain,” said Peekskill spokesman Bob Knight in an email Tuesday.

“Residents are asked to keep their garbage covered and pet food inside. If you see a bear, do not approach it and do not surround it.”

Knight later added that the bear was spotted heading away from the city, but cautioned residents not to leave food out to entice the bear to come back.

 

 

Peekskill’s Black Bear Gains Fame In…. Texas? | The Bedford Daily Voice.