HomeRun Homes Rent to Own Homes Blog

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HomeRun Homes is a centralized marketplace which helps people Find or Sell a Rent to Own Home, both Nationwide and Globally to the thriving Rent to Own Market. http://www.lease2buy.com
Showing posts with label builders. Show all posts
Showing posts with label builders. Show all posts

July 15, 2012

A Page Turns on The Housing Market

Hi All,
   Well, it finally happened. Finally. The hype and the media coverage about it's imminent return have all been fulfilled. The U.S. Housing Market has finally began crawling back up from the bottom.

   It's been a long time, about 7 years, and a lot of ugly things have happened during that time, but most of the home price indices are starting to head back up in the right direction. In a recent WSJ article by David Wessel titled, "Housing Passes a Milestone". David Blitzer of S&P stated that "We finally saw some rising home prices", and reported the first monthly increase in prices after seven months of declines.

   Aside from prices, we all know the impact of housing inventory. It's simple Supply and Demand Economics. In what was called a surprise, the inventory of existing homes for sale has fallen "close to the normal level of six months' worth despite all the foreclosed homes that lenders own", per this article, and adds two additional key points, which are that a fraction of homes that are vacant is "at its lowest level since 2006", and that the amount of existing homes that were sold in May 2012 was 10% higher that those sold in May 2011. Wessel notes that many of these homes were purchased by investors "who plan to rent them for now and sell them later", which he infers to as "an important sign of an inflection point". We can surmise from our angle that the amount of homes being sold via Rent to Own is trending upwards from what we are seeing from our Rent to Own Homes website.

But can this just be a statistical aberration?

   Wessel provides an additional reason why this seems to be the real deal. Aside from the reduced inventory of homes that will support the higher prices, he also points to the increase in construction of single-family homes. Comparing May 2012 to May 2011, "Builders began work on 26% more single-family homes in May 2012" than the previous time last year.

   There is still a long way to go. Wessel mentioned some things that we should not forget: Single-family housing starts are still 60% below the 2002 "pre-bubble pace", Americans' equity in homes 25%, less than it was in 2002, and more than one in every four mortgage borrowers "still has a loan bigger than the value of the house". But "the housing bust is over", which for many of us, is music to our ears.

   Have you seen any signs of the Housing Market turning around by you? We'd love to hear.

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Have a Great Week, and Happy Rent-to-Owning !

Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #HousingMarket #homeprices #housinginventory #foreclosedhomes #existinghomes #builders #singlefamilyhomes #renttoown #mortgage #investors

July 5, 2012

Developers Say, "If You Build Them, They Will Rent Them"

Hi Folks,
   Hope you had a great July 4th, and if you were lucky enough to snare a 5-day weekend, then good for you !

   It always amazes me to see the things people do to adapt to the financial environment, but when you start looking at what large companies do to adapt, you quite often will see a slower response, as the inner mechanics all need to line up, however, that is not always true!

   With the bump in May building permits spanning both single and multi-family (apartment), this indicator of future construction made it to the best levels seen in about 4 years. With this market direction, a large number of Developers are building single family homes as rentals, per a recent article on CNBC.com, titled, "More Builders Are Turning to New Market: Rentals".

   The interesting point, the article says, is that, "Historically, builders did this largely in low-income, government-subsidized housing projects", but goes on to say that the "market is quite different today." One such developer mentioned was Joe Petersen of Insight Real Estate Strategies in Texas, who said that "there are so many people with mortgage issues … and just recognizing these issues will not go away soon, we felt like how could we deliver high quality rental housing in a product that single family homeowners would appreciate?”. The answer: high-end homes built specifically as rentals, which takes all of the variables into account (mortgage industry, economy, etc).

   Petersen is clearing land and raising money to build single family homes just outside Ft. Worth, and does mention that a lot will be different in this type of construction, including the maintenance and business plan, but he "believes demand is strong enough for him to be able to charge premium rents"

   Petersen is banking on the fact that since rent homes are typically "not the nicest homes", that he will be able to offer people something different, "having a professional staff on site, maintaining and managing it", in which they can "offer a lifestyle very different from a part-time Realtor or a homeowner who’s renting it because he can’t sell".

   Now, back to those "rent homes". Per the CNBC.com article, Beazer Homes recently launched a “pre-owned” business, “for the purpose of acquiring, improving, renting and ultimately reselling previously owned homes within select communities and markets which we operate,” according to its recent 10-Q.

   Taking this a step further, Beazer is "buying foreclosed homes", "rehabbing them, then renting them with the intention to ultimately sell.", so in other words, Rent to Own. Petersen is also keen on the Rent-to-Own option. He intends to build up to 300 homes, and will use the rent-to-own option just as other builders have; "to alleviate a backlog of unsold homes and reduce carrying costs."

   What are your thoughts on this strategy?

Would You Like Our Blog Posts Sent Directly to your E-mail? Here's How:
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Have a Great Weekend, and Happy Rent-to-Owning !
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #realestate #developer #buildingpermits #futureconstruction #builders #rentalhousing #renttoown #rent-to-own #foreclosedhomes #rehabbing #realtor #homeowner

June 23, 2011

5 Rules and 8 Factors

Hi Folks,
   The "Dog Days" of Summer are upon us, and the humidity is coming (take cover !!). Some folks might look at the odd title of this story and scratch their head, but I will explain.

   There were two very recent stories that intertwined quite well, regarding the new playing field of Real Estate, coupled with some old-school things that should not be overlooked.

   In the story, "5 New Rules of Real Estate", by Ilyce Glink for CBS MoneyWatch and on Yahoo Real Estate, the Author names these rules as follows: "R.I.P., Big Housing Price Jumps", "Mortgage Lenders: Just Not That into You", "The Best Deals Are in New Places", "Investing? Focus on Income", and "Time to Think Medium Term ... at Minimum". In summary, the days of huge jumps in prices are gone, lenders are lending in super-risk -averse mode, properties in areas that are not overloaded with foreclosures will be good deals, buy and rent some foreclosure properties for income, and a 7-10 year plan is important when buying a property in this market.

   The other story, "8 Factors That Devalue a Good Home", written by Janet Fowler, and which appeared in the Yahoo Financially Fit section, brings up some important points for sellers looking to get out from under their home. As mentioned by Glink, "Homeowners are desperate for the housing market to rebound -- especially the more than 25 percent who are underwater with their homes".

   Fowler mentioned the old "Location" adage, warns about "Good Renovations Gone Bad" (shoddy DIY work), overly creative customization (pink walls?), and unappealing curb appeal (keep the outside of the home neat!). Rounding out the 8 factors are, "Pets Gone Wild" (carpet damage, etc), "Not-So-Nice Neighborhood" (Crime), a Sinister Reputation (a murder in the house), or, "Frightful Foreclosures". This last one is really important, especially in today's housing market. As Fowler says, "Many buyers are leery of purchasing foreclosures that are being sold on an "as-is" basis.", and she adds that the fear is that, "the home could be a money pit or require a huge amount of repairs before being move-in ready.". She advises that it is crucial that you get a home inspection so that you know, "exactly what you're getting into."

   Glink comments that she does not believe there has ever, "been a better time to buy a home" saying that 30-year fixed-rate mortgages, "can be had for less than 5 percent". She also says that it seems, "everyone wants the real estate market to get better", including those hit the hardest...Realtors, Builders, Appraisers, and Homeowners themselves.

   What are your thoughts on these suggestions and overviews?

Have a Great Weekend, and Happy Rent-to-Owning !
Rob Eisenstein
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

TAGS: #realestate #mortgagelender #foreclosureproperties #realtor #builder #appraiser

September 6, 2010

$750,000 ? The Top Price Paid for a New Home ?

Good Morning Everyone,

   Hope you have a nice and relaxing Labor Day planned for today. I didn't plan on laboring today, however, I consider this a labor of love. Too corny? Please accept my apologies as it is quite early here !

A few things worth mentioning:

1. Interesting News: A good friend of mine brought the following article to my attention, titled, "No New McMansions Sold in July", which states that, "Not a single new home priced above $750,000 sold in July or June", and, "As for houses priced between $500,000 and $750,000, only 1,000 new units were sold last month. When it comes to new homes that did find buyers in July, more than 80% were priced under $300,000." Chew on those numbers....what does it mean for new homes that were built and were priced over $750,000? How about the custom builders out there who built those $1 Million or higher-priced "McMansions"? Re-read this paragraph and realize the true state of things, and how the economy appears to be hitting the higher-end consumer, who usually weather the economic storms quite well. Thanks to my friend for letting me know about this story so that I can share it with my readers.

2. General Economic News: No housing-related releases are planned for this week, however, we need to keep an eye on Obama and the next round of modifications he is planning for upside-down homes (where your mortgage is greater than the value of your home).

3. Website News: You now have the ability to delete your Ads and replace them with new ones. You would log into your account via the Control Panel, and then click "Edit Ads", and click delete.

More news to come this week!

Have a Great Labor Day, and Happy Rent-to-Owning !

July 19, 2010

Housing Market, Home Building, and You

Hi Everyone,

   Hope you had a great weekend and took a little time to relax.

   We have a very exciting week ahead here, with a lot of great advertising lined up to bring even more visitors to your Ads. Additionally, there is a ton of information coming out on the strength of the Housing Market this week. Tomorrow, the New Residential Construction numbers are coming out, on Wednesday, the Loan Performance Housing Price Index numbers come out, and then on Thursday, we have both the NAR Existing Home Sales and the FHFA Monthly House Price Index numbers being released. We are holding on to hope that there will be a significantly positive bounce in these numbers, but at this moment, I just truly don't see how that can happen. I'm not being pessimistic, but it will take time, and we are not out of the woods yet.

   On Wednesday, we will begin a very exciting 3-part series that will cover the home-building process. We will have comments from builders discussing how they identify, acquire, and build homes and other Real Estate, along with perspectives from other professionals in the industry with additional points of view and comments. It's should be a treasure trove of information for anyone interested in the Real Estate market.

   We hope you have a great week, and Happy Rent-to-Owning !!!

June 11, 2010

May Residential Construction Numbers - Friend or Foe?

Hi Everyone,

Another Friday is upon us, and we are thankful for another very busy week. As a rule, I try to look back at each week to see what I am thankful for. Let me tell you - some weeks it is tough to find anything, aside from being thankful for my family! However, this past week, we not only received some fantastic media coverage (http://www.familygoesstrong.com/making-rent-own-real-estate-deals-work), but we also had a few other interviews for popular financial and real estate websites that are on the pipeline to be published as well. Additionally, we received some good karma (priceless), by hearing some very kind comments from people who have used our website. Karma, that's what it's really all about !

OK, now on to the Real Estate market, our ailing friend ! The New Residential construction numbers will be released this week (on June 16th), and most importantly, these numbers will reflect the post-tax credit market, since they cover May 2010 (the tax credit ended on April 30th 2010). I, personally, am very curious to see these numbers, and I know a lot of real estate investors, economists, and builders, who are also interested in this. This could have a significant impact on the market. Could the numbers have dropped? Sure they could have...the major incentive expired...but the market has most probably discounted this information into the mix already. If the numbers pop upwards, that could have a dramatic effect on the market, and potentially, the Rent to Own Market, as well. For more information on these reports, please check here: http://www.census.gov/const/www/newresconstindex.html

We have a few infrastructure and marketing projects drawing closer to completion, and when they are finished, we will let you know. They involve ease of accessibility, traffic incentives, and an overall boost to site traffic to increase views to your Ads on our website.

Do you enjoy reading our Blog?

If so, we would love to hear from you in the comments section below. If you don't have time to read it and you would rather listen to it, we do 1-2 Podcasts per week, and you can download them in MP3 format in our Itunes Store, at: http://itunes.apple.com/WebObjects/MZStore.woa/wa/viewPodcast?id=373351426

Have a Great Weekend, and Happy Rent-to-Owning !!

June 2, 2010

Caribbean Islands, Architects, Builders, Construction, Pending Homes Sales Up...

Hi Everyone,

Hope your week is going great so far. We have a few new and exciting features that we wanted to inform you of today.

For starters, we have been receiving a lot of comments and requests for a new section for Jamaica, the Bahamas, Trinidad, etc. The amount of requests alone would not warrant a section for each of these countries, however, we have created a broader category for the Caribbean Islands.

The new section for the Caribbean Island Homes Wanted is located at: http://www.lease2buy.com/homes_wanted_listing.php?state=Caribbean+Islands

The new section for the Caribbean Island Homes Available is located at: http://www.lease2buy.com/homes_available_listing.php?state=Caribbean+Islands

Please note that these are freshly created sections, and therefore, they are not populated yet, so you may now begin posting your Rent to Own Homes as well as your requests for Rent to Own Homes.

The next features that we have added are in the Home Services section, and the new services that we have added are "Architects" (See it Here)and "Builders & Construction" (See it Here), which covers the full process from the design of a home, all the way on up through building the home. Additionally, we have added an "Announcements" Section (See it Here), which is ideal for announcing Real Estate Investor Meetings ! If you need to add your services to any of these sections, you can do so via this link: http://www.lease2buy.com/homeservicesinfo.php

The final new feature we have included is a "Share This Property" button, which is included on the page of every "Homes Available" Ad. This button will let you share the link to your home with all of the popular Social Bookmarking Websites (for example, Digg, Delicious, etc.). The goal: Putting your property in front of as many eyeballs as you can !

For some other news, Pending Home Sales hit a 6-month high in April. This is good news as we are now headed into the summer months.

Being the bearer of all of this good news is fantastic! I wish I could bring news like this every day...maybe I can?

Have a Great Week, and Happy Rent-to-Owning !