Realtors And Existing Homes...What It All Means

Hi Everyone,

   I might be shot on the spot for this, but perhaps I won't be...when we think of Realtors, we often think of the Realtors that sell Existing homes...in other words...ones that are already built and are not new construction. If we go with that thought, seeing the clout that Realtors have in the Housing market, we realize how important an indicator the "Existing Homes Sales" figures are (released by the National Association of Realtors®, or "NAR").

   The figures for May were just released, and sales dropped 3.8% from April, but 15.3% from a year ago (when the tax credit deadline was approaching). The figures are the "completed transactions that include single-family, townhomes, condominiums and co-ops", per the NAR.

   "There is still lots of pain in many US markets. Foreclosures and short sales, declining prices and tougher lending standards are prohibiting new buyers from getting in the market", says Barak Dunayer, founder of Barak Realty in New York City. He points to some bright spots, such as properties priced below $100,000, along with some "deeply discounted properties" scooped up by investors. He does offer some hope in his local market, and says that in some areas, as in the case of NY City, "the sales of certain properties in specific submarkets have been robust and even back to 2006-2007 levels.", and reminds us of a very valuable lesson: "As real estate is a local market NOT a national market, one must look closely at local market conditions prior to making sound buying and selling decisions."

   This is some sound advice. On Wednesday, the FHFA Monthly House Price Index will be released, followed by the New Residential Sales figures for May on Thursday. What do you think will be the result of those two releases? We'd love to hear your opinion.

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

TAGS: #Realtor #housingmarket #existinghomes

What Happened To Residential Construction In Our Country?

Hi Folks,

   Welcome back !

   As you may be aware, late last week the May 2011 figures for New Residential Construction were released, and we'd like to take a look at these figures today, which are broken down into 3 components; Building Permits, Housing Starts, and Housing Completions.

   Building Permits for privately-owned housing units were up 8.7% from April, and 5.2% above May 2010, while Single-family authorizations were 2.5% above April. Housing Starts for privately-owned housing was up 3.5% from April, but down 3.4% from May 2010, with single-family housing starts 3.7% above April. The last piece of the equation was Housing Completions, with Privately-owned Up 0.4% from April, but down 22.5% from May 2010.

   "Perhaps my type of perspective on these numbers is interesting", says Bo Hammond, VP of Sales for the Coastal Lumber Company, which supplies raw material for housing attributes, mouldings, flooring, and cabinetry, and advises that his perspective is from a "practical sense".

   Hammond says that we are, "overbuilt from a residential construction standpoint, and the allure of home ownership has faded for those wage earners who historically would have been buying their first house and starting families." He continues to say that the affect on jobs of the recent recession has, "fundamentally changed the perspective of the emerging generation that are getting out of school and deciding to live at home, rent, get married, etc."

   Hammond says that uncertainty in jobs, home values, and financial security has essentially "tabled a normal progression that would encourage behavior that would have building permits and residential construction increasing.", but says, "In lieu of this, remodeling and multi-family construction have been the larger positive influences, but those combined are volatile and don't have the ability to impact GDP like healthy residential construction had 5-7 years ago."

   "I would just reinforce that the market for new homes is extremely competitive right now. This is a great time to buy due to the affordability of homes and interest rates.", says Michael F. Dillon, Jr., Executive Director of the Builders Association of Northern Nevada, who also reminds us that, "Homeowners will still receive a great tax incentive to buy a home and build equity."

   What do you think of the recent numbers? What would you attribute the huge dip on Building completions from just one year ago? We'd love to hear your take on things.

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

TAGS: #residentialconstruction #remodeling #taxincentive

The Connection Between The Producer Price Index And Housing

Hi Folks,
   As another week draws to a close, we take a look at an indicator that we have not discussed here, and that is the Producer Price Index (PPI), which basically looks at goods in varying stages of production. The Producer Price Index for finished goods rose 0.2% in May (following increases of 0.8% in April and 0.7% in March), so it appears things are headed in the right direction, however, what does this mean for the Housing Market?

   "On the surface the Housing Market should have the potential of having a large impact on PPI since it represents a large portion of the U.S. economic engine", says Lynn Grantham of St. Johns, FL. Grantham points to the "lack of strength in the Housing Market since 2008", and says that the remaining inventory of unsold homes, "including the large number of foreclosed properties that lenders are still sitting on should translate into a dampening impact on the PPI."

   Another point, which was raised by Barry of Alvic Management, is that higher producer prices, "increase the cost of construction materials and should slow new construction, which may make existing homes more valuable because it's harder to recreate them."

   What is your view on this index? How inter-related is it to the Housing Market and the Real Estate Industry? We'd love to hear your opinion.

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

TAGS: #PPI #realestate #foreclosed #construction

Real Estate Snapshot Of Long Island and New York City

Good Morning,

   Welcome back !

   Today, on a personal note, I was born and raised in Queens, NY (Howard Beach), and currently reside in Long Island, NY. My business has no physical boundaries, as our website covers every state and multiple countries around the world, however, as a homeowner and a local business owner, I like to keep my finger on the pulse of the housing market in this part of the world. Today, I'd like to focus on the Long Island and New York City markets, and I spoke with some local folks for their perspective on how things are going. I can tell you this;

   There has been a, "A marked upswing in the past couple of months, contrary to local newspaper articles", according to Janet M. Maffucci, an agent with Netter Real Estate in West Islip (an office of approximately 40 agents). Maffucci bolsters her claim with the yard stick of "sides", which she explains as parts of a transaction. She explains "sides" as follows: "For instance, if I get the Buyer for an "in-house" Listing (belongs to someone else in the office), that would be 2 "sides" for Netter RE because my office brought the Buyer AND its our Listing. Sometimes you just Sell an outside Real Estates Listing, so we would then have just 1 "side" of that transaction. So all together, we add up all these "sides" of transactions that the Sales Agents are involved in on a daily basis.". As for quantity, at the "height" of the Market in 2005-2006, Maffucci tells us she had, "40 sides on the "board" at any given time", but in the, "depths of the Market crash", she says, "we dipped into single digits". Maffucci proudly says that they are back up to 39 sides for the past few weeks, to which she concludes, as a, "definite upswing in the Real Estate Market".

   In terms of pricing and value, Erik Reilly, a Broker Associate with REMAX Shores in Oceanside, weighed in and said that he believes that, "Long Island values have come in for a "soft landing" however affordability has never been better.". Reilly says that with the low interest rates are with "prices down 20-25%" that there has, "never been a better time to buy for the long term." he does caution that Values may come down some more when interest rates rise or if more "distressed inventory (REO and short sales) puts downward pressure on values", but still believes that the cost of owning right now, "has never been better.". To the people who say, "you can't get a mortgage these days", Reilly says that this is incorrect, and adds that you can get a mortgage with a job and "decent credit".

   Lori Beldiny, an Associate Real Estate Broker with Coldwell Banker in Suffolk Country, says that as an active Associate Broker for 20 years, she has seen "many types of Markets". Beldiny says that currently, "our climate is strained with the negative press from media and challenges of our lending community.". She reminds us that last year at this time, the Government offered a $7,000 Tax advantage, which she says, "created a positive atmosphere for buyers who were actively looking but became real instead of tire kickers." As for today, as far as the Spring is concerned, it is, "opening up to a slow start.", and she points to the the "weather and lack of confidence" for the reasons. Beldiny says, however, that Realtors realize the timing now is "awesome", and that, "Money is cheap to borrow and supply of homes keeping prices at all time low's."

   In terms of our neighbors to the West (8 million + !), inventory is tight, says Jennifer A. Chiongbian, SVP & Licensed Associate Broker with Rutenberg Realty in New York City. Chiongbian says that, "extremely tight inventory has left prospective renters left with no choice but to pay higher prices and left with almost nothing to choose from.". As an example of how tight the inventory is, she say that Manhattan is, "already known to have an average of a 1% vacancy rate; at times a bit higher, at times slightly bit lower.", and says that currently, "we are boasting a .69% vacancy rate" (which, she adds, spans data from 39,000 buildings from 96th St. to Battery Park; which is considered prime Manhattan area). In contrast, she tells us that at this same time last year, they were averaging .98% total vacancy. Her prediction; "The peak summer rental months are just beginning, and from what I can see out there, there will be no respite from this rental gouging until September, so hang onto your hats!"

   Based on the "on-the-front-lines" information that was provided above, things don't seem as bad as the media would like us to believe. Are you a local Long Island or New York City Realtor or Investor? What's your take on our market? We'd love to hear from you.

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

TAGS: #longisland #NYC #realestate

Caveats For First Time Homebuyers

Good Morning,

   Hope you had a nice weekend, and enthralled to have you back with me again today!

   "First Time Homebuyers can be the most fun to work with of any client.", says Realtor Dawn Ohnstad, a Realtor with Coldwell Banker Burnet in Wayzata MN, who says that first time homebuyers are, "excited, they want to learn, they ask great questions and once they have selected an agent, they operate as a team member. It makes our job fun!". David Mawyer of the CSSNMawyer Realty Group, says that first time home buyers want to be, "treated with honesty and respect. Regardless of the down payment amount or the price of the home, they are making a significant investment and want to insure that it is a good one."

   This brings us to our topic, of course, which is regarding some Caveats, or tips/warnings, from some Real Estate Professionals.

   Kris Bickell of the Website of Housebuying-tips.com, says that the best advice for new homebuyers is to get, "a good realtor, good mortgage broker, and good home inspector.". Ohnstad suggests that one of the first things they should do is to identify an experienced, reputable loan officer who will, "take the time to meet with them face to face, educate them about their various loan product options and provide a letter of pre-approval." Mawyer also concurs that the it is very important to select the Right Realtor and Lender, who will, "put the buyer’s interest ahead of their own interest". Mawyer says that this will require some homework/research by the potential buyer (asking for references, ask questions about honesty, integrity, and consistency, etc.). He warns that buyers should look out for pressure, as this should be viewed as a “red flag”."

   Mawyer says that it is important to, "Be honest about your requirements", and to assess what is important in the decision (size of the home? location? features? price?), and adds that the buyer should feel free to ask questions.

   Bickell says that she had an unfortunate incident when buying her home since her Realtors ended up being "lazy", since they, "don't make nearly as much money from home buyers". Ohnstad says that it is important to caution them about going to open houses and talking with lots of listing agents. She says that if they happen to find the house that is right for them, "that listing agent will be doing all they can in the interest of the seller.", and says, "This happens quite often, and I wish I could let them all know, that we Realtors prefer to be brought into the equation to represent a buyer sooner, not later." Ohnstad adds that, "Our negotiation power on behalf of our buyer is diminished significantly when all the cards have already been shown to the other side. Any questions they may have, can be answered by their own Buyers' Representative and since the commission is already being paid by the seller, there is simply no down side to getting a pro on their team early." Ohnstad also cautions that First Time Buyers think that good Realtors who have been in the business a long time, "do not want to work on the small transactions.", but she says this is not true, and that, "A good agent wants to work with any qualified buyer who has been pre- approved by a lender and is ready to begin the process."

   When it comes to the home inspector, Bickell says that hers was, "referred by the Realtors, and really didn't do a good job.", but, "Not just because he was referred, but because he missed a lot.". Ultimately, Bickell says that they ended up having to sue him later because he missed a big electrical problem. Due to the issues she experienced during the process, Bickell started her website, "to share the lessons I learned the hard way."

   Onto another caveat; Mawyer suggest that you choose the right search engine, and says that, "If the first time buyer wants to find a home on the Internet, make sure that the search engine being used provides “real time” access to the live database", since, "finding homes that are no longer available for sale can be a major frustration for the first time home buyer." Seems like a great time to plug my website? (Yes - HomeRun Homes, the Classified Ads/Search Engine for Rent to Own Homes.

   These Pros have provided some fantastic tips. Is there anything that should be added to this? We would love to hear from you!

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

TAGS: #firsttimehomebuyer #realtor #mortgagebroker #openhouse #homeinspector

Housing Factors Contributing to Market Direction

Hi Folks,

   Hope you've had an outstanding week.

   Today, I'd like to share a very interesting and very informative story that I came across that fits perfectly within the framework of our discussions here on our Blog. The story, which was written by Ruth Simon and Jessica Silver-Greenberg for the Wall Street Journal (and appeared on Yahoo Real Estate), is titled, "Why It's Time To Buy".

   The story discusses what it calls the, "five-year national housing bust", and discusses some positive signs, short-term concerns, long-term concerns, a 5-Year Outlook, and touches on the topic of Renting vs. Buying.

   Among the positive signs that were cited are the 50-year lows that mortgage rates have dropped to, as well as the affordability of homes. They also referred to the inventory of homes as, "A historic glut of homes", that has created a buyer's market. They did point to the fact that changes are coming, and mentioned a reference from Moody's Analytics that says the number of distressed sales will begin to fall in 2013 (and prices will increase). Additionally, Home Building is at "standstill" (lower chance of inventory/supply getting worse), and they also cited "Household Formation" (a Demographic Indicator) is on the rise, which promises, as they say, "to take a bite out of the glut in coming years."

   When looking at the overall movement of the Housing Market, the short-term looks bleak, as the authors point to Weak Job growth, the fact that Foreclosure sales encompass the lion's share of market, and that Home Prices will fall more in the coming months, per some Economists. For the longer term, they point to the positives of home ownership, such as the ability to deduct the mortgage interest on your taxes, and well as the ability to decorate, paint, and change anything that you want on your own home, "without having to clear it with a landlord." They added to this a, "5-Year Outlook", that points to the coming era of post-foreclosure overload (after the majority of the foreclosure-related inventory), has been cleared, and as housing economists say, "the traditional drivers of the housing market—demographics, affordability, loan availability, employment and psychology—should take over."

Some of the more specific factors they names that will make or break local markets over the next few years, were as follows:

* Household formation is on the rise, per Moodys, and is projected to increase from 950,000 in 2010 to approx 1.2 million over the next decade.

* Higher demand for second homes, per Moodys, should begin, "sopping up excess inventory in much of the country over the next two years"

* Economic Conditions - "Rising incomes and increased employment tend to give more would-be buyers confidence and buying power."

* Mortgage financing is available for people with good credit, but, "nearly impossible" for people who do not meet the lending guidelines.

* Another interesting point that was mentioned was that, "higher down-payment standards are locking some would-be buyers out of the market.", and they pointed to a recent survey by Zelman Associates that showed that, "Just 35% of renters have the minimum 3.5% down payment needed for an FHA loan on the median-priced home in their market"

   As for the "Renting Vs. Buying" question that many people have pondered, the authors stated that, "Renting is still cheaper than buying in most markets, but rising rents and falling house prices mean that, in some areas, this won't be the case for long.". They said that according to Moody's Analytics, Buying a home is already cheaper than renting in Chicago, Cleveland, Detroit and Orlando, Fla., and that for markets such as Dallas, Las Vegas and Sacramento", "the equation is likely to soon turn in favor of homeownership if current trends persist,"

   One very practical suggestion mentioned was as follows: to compare rental prices for similar properties", and to, "wait until the monthly outlays, including taxes and insurance, are equal." and additionally, they said, "You also could factor in the tax savings of owning, which would make buying more attractive even if the gross monthly outlay is slightly higher."

   In light of the Economic & Housing Market Analysis information, coupled with the Rent to Own perspective that we try to bring to you, this story was a direct hit for you...whether you're a homeowner, home seller, a realtor, or real estate investor. What are your thoughts and comments on this story?

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

TAGS: #Foreclosure #mortgagerates #realestateinvestor #rentalprices #renttoown #WallStreet

Top 10 Legal Real Estate Terms You Must Know

Hi Folks,

   Welcome to Wednesday. Can someone pass me a cold beverage? All kidding aside, it's hot out there folks, so take precautions, wear light colors, drink plenty of fluids, etc.

   As a Buyer of a home, a Seller of a Home, a Real Estate Investor, a Real Estate Agent, etc, there are some terms you need to know before you step into a deal. We have provided a concise list of the most important terms that we need to know.

   The list is not in any specific priority order, as they are all quite important. Always remember to consult a local Real Estate Attorney before getting involved in any and all types of Real Estate arrangements.

1. Quitclaim Deed - This is a document that is used to, "clear up issues involving possible multiple owners of a property", per Sophie Martin, MBA, from the UNM School of Law, who says that with this special form of deed, "someone who might have an interest in your property agrees to hand it over to you."

2. Fee Simple Absolute - Per Martin, this is the, "best and most common ownership of property: full right to possess the property now and into the future."

3. Tenancy in Common - "When you and a partner (or partners) go in on a piece of land, you each own a portion of the whole which you can will or sell to others.", per Martin. Additionally, it means that, "each owner has a fee simple title to his or her share and that title can be sold or willed to someone else.", says Rick Snow, Broker/Owner of First Choice Realty. Snow adds that Joint tenancy commonly has, "rights of survivorship", where multiple parties may own property together and, "if one dies the remaining owners absorb the deceased parties share."

4. Title insurance - Snow describes Title Insurance as, "indemnity insurance against financial loss from defects in title to real property and from the invalidity or unenforceability of mortgage liens." Basically, a form of protection.

5. Escrow - "An arrangement made under contractual provisions between transacting parties, whereby an independent trusted third party receives and disburses money and/or documents for the transacting parties", as defined by Snow.

6. Default - Defined by Snow as, "the failure to comply with some aspect of the contract and either seller or buyer can find themselves in default under the provisions of the contract. Remedies to the non defaulting party should be spelled put on the contract."

7. Easement - A "permission to cross someone else's land.", which is referred to as the proper definition, per Mike Arman, a Real estate salesman and Mortgage Broker for over 20 years. Arman says that the easement holder does NOT own the land, "and cannot cut so much as one blade of grass without the owner's permission.". He also says that they cannot be unilaterally revoked or blocked (Arman says, "next stop is court."). Arman says he *specifically* suggest, "NOT purchasing ANY property which relies on easements or a chain of easements for access". Sophie Martin adds that the most common easements are held by utility companies.

8. Flood Zone - Deemed quite important, per Arman, who says that you need to be, "1,000% sure of the flood zone your prospective property is in - homeowners insurance does not cover flooding, and flood insurance will be expensive and WILL be required by your lender.". Arman says flood insurance comes from NFIP, "which is administered by FEMA (of Katrina fame), which is now a division of DHS".

9. Subject to availability of suitable financing - This is "Hand written on the contract for purchase and sale", says Arman, who says that this phrase can, "save the buyer's good faith deposit if suitable financing is not available - and the buyer defines "suitable financing", so it can also be used as an "out"". Arman says, however, that the problem is that, "sometimes decent financing simply is NOT available - and 99.9999% of buyers go looking for financing AFTER they've signed the contract and put up a (big) deposit. Lenders often won't waste their precious time on pre-approvals, come back when you've signed a contract so we know you are serious." Additionally, he adds, "Bingo - someone is going to be out five or ten grand when they can't get a loan because of a credit bureau error from 1937."

10. AS IS. - As described by Timothy G. Wiedman, D.B.A. Division of Economics & Business Doane College in Crete, Nebraska, "In an era of bank foreclosures and generally falling prices for real estate of all types, many properties are being sold "as is."". Wiedman says that Buyers should view the term as a, "warning to be cautious, and property being sold "as is" should be professionally inspected _before any commitments are made." He points to a a court case that can provide guidance, which is "Prudential Insurance Company of America v. Jefferson Associates, Ltd." which, he says, went to the Texas Supreme Court in 1995. Wiedman says that "When property is sold "as is," the buyer _may_ get a great deal. On the other hand, the buyer may later discover defects that will be expensive to correct -- and have _no_ ability to recover damages from the seller."

   I hope these terms have been helpful. I cannot stress this point enough: Always remember to consult a local Real Estate Attorney before getting involved in any and all types of Real Estate arrangements. Do you have any important Real Estate Legal Terms to add to this list? we'd love to hear from you.

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

TAGS: #realestateinvestor #legal #Deed #titleinsurance

Selling a Home via Rent to Own

Hi Folks,

   Glad to welcome you back.

   We have some great topics ahead this week, and since we are headed into the summer, we wanted to make you aware once again of the invitation that we extended back in early April.

   In the interest of making this a "Non" Sales Pitch offer, I do recognize the fact that it can be taken by many as a sales pitch. On the flip side, if you read this carefully, you'll see that it is not (and is actually pretty cool!).

   Occasionally, we have more Buyers than Sellers of Rent to Own Homes placing Ads, and that creates a gap in favor of one type of Ad vs. another type of Ad. That being said, we currently have a temporarily disproportionate amount of Homes Wanted Ads (Buyers) vs Homes Available Ads (Sellers), and we would like to close that gap.

   In order to do so, we are extending to you, the readers of this Blog, an opportunity to list your Rent to Own Home for a period of 3-Months, at no charge (normally $16.99 for 3-Months). No entering credit card info, no payments...just listing your home. I'm going to run this offer through the end of June, or once the gap is closed...whichever comes first.

How Do You Get your Free 3-Month Ad listing your Home?

STEP 1:
Send an E-mail to me at homebuyer@lease2buy.com with the Subject; "BLOG - MY HOME FOR RENT TO OWN"

STEP 2:
We'll set up a Username and Password for you so you can log in, create your Ad, upload photos, etc.


So, To Recap...

The benefit for you - a free Ad listing your home.
The benefit for me - closing the gap between types of Ads as mentioned above.

I look forward to receiving your E-mails and seeing your homes on our website,

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

Current Building and Construction Trends

Hi Folks,

   Another week in the books, and a hot/humid one it was, at least here in New York.

   On the topic of Building and Construction Trends, the market has changed for sure! Jim Rasche, owner of a Contracting/Construction Management Company, says that for over 43 years, he has seen it all, and in terms of the housing/building/construction market, he reflects on just a few years back when, "the money was flowing", and, "the market for all types of construction investment knew no bounds". As we all know, that has ended. Melanie Taylor of Melanie Taylor Architecture, says that Condo conversions have halted - places converted in 2007 are still on the market. So, with the "Good Old Days" behinds us, today we'll be looking at some of the latest building and construction trends.

   Lydia Player of Virginia Cook Realtors, says that the homes that are, "successfully being built and sold are smaller. No one wants a home over 6,000 square feet." Player says that she sees this trend as, "a function of downsizing and simplifying."

   Rasche adds that the money for new projects was "dried up" for several years, but he says that there are signs of loosening up, "as evidenced by the sporadic requests for proposals I am getting from private entities." He says, however, that these projects are primarily, "renovations and restorations of existing as commercial building owners attempt to update their facilities without incurring long term permit processes and expensive ground up development."

   Jeanette Chasworth, A Certified Interior Designer, says that people doing more remodeling, and she says that one of the key areas is, "Aging in Place". Homes that are being built are more, "accessibility oriented" and many of the new retirement communities are using this as a key feature in their designs. Chasworth says that many homeowners are making their current homes, "more accessible so that they can stay in them longer and avoid the high cost of assisted living."

   Rasche concurs, and says that there are more and more owners making do with what they have and updating facilities (both commercial and retail) to, "maintain user interest in their facilities". He says that the public sector, however, "is going strong as new projects for heavy and highway and buildings are going out for proposals daily. The ARRA has funded many of these projects and they are now becoming reality." Rasche points to a very interesting morsel of information: "In 2006, there were at least 60 tower cranes on the skyline of downtown Miami. Today you would be hard pressed to find just one! Construction unemployment is listed as being around 20% but I know for a fact that the unemployment among construction management staff is at least 40 to 50% in this area."

   In line with some of the trends discussed above, Cas Mollien CIO of Foram Group, says that you need to, "differentiate from competitors and bring something new and exciting to the market place.", and he provides the example of one of his properties that they redesigned. As Mollien describes it, "We decided to design the new property in a way that we would like real estate to be constructed for current day businesses, with full business continuity in mind. The conclusion of our ideas is a building with unsurpassed business as well as environmental benefits."

   Mollien hit upon a very important trend; Environmentally Conscious, or, "Green". Kevin Costenaro of The Augusta Group, says that the, "most glaring trend we are seeing is that of going "green.". He says that nearly every one of his clients for the past 2-3 years has at least, "inquired about the use of alternative heating & electrical systems, if not actually had them installed.", and that, "We have installed a combination of geothermal systems, wind power systems, solar PV systems, and/or solar thermal systems on 50% of our projects." Interestingly, Costenaro says he, "does not see any evidence that these trends are due to economic reasons but rather a feeling of wanting to be better stewards of the environment."

   One other feature that Cas Mollien mentioned is that they decided to, "approach network connectivity as a fourth utility", by offering, "massive amounts of scalable and redundant bandwidth directly to one of the nation's largest Internet Exchange Points (IXP's).", which, he says, "provides an unsurpassed experience to our tenants, allowing them to use the latest in Cloud and mobile technologies, as well as an unrivalled choice in carriers, service providers and connectivity options." This sounds like a trend that could possibly build up more steam over time.

   What are your thoughts? What kind of trends are you seeing?

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


TAGS: #Construction #CommercialBuilding #RealEstate #Green

Foreclosures Flooding The Market And Diluting Prices

Good Morning,

   Hope you are making most of this short week (short for the lucky ones).

   The woes of the housing market surface and resurface in many different ways. The S&P/Case-Shiller Home Price Indices were just released, and the numbers indicate that home prices in the Nation hit a new low in Q1 of this year. The figures showed a 4.2% drop, along with a, "new recession low" with the latest data. Additionally, home prices posted an annual decline of 5.1% when compared to Q1 of 2010. The release of these figures from Standard and Poors indicate that, "Nationally, home prices are back to their mid-2002 levels."

   "There's a three-year inventory of homes in foreclosure for sale, and that's devastating home prices.", says Les Christie, in a story titled, "Foreclosures for sale: Big supply, low prices", in a story on Yahoo Real Estate/CNN Money. The story points to data from RealtyTrac, and says that more than half of homes sold in Nevada are, "in some stage of foreclosure". California and Arizona are not far behind, with foreclosures representing 45% of sales.

   Rich Sharga of RealtyTrac was quoted very accurately as saying that this, "is very bad for the economy.".

   Homes, such as REOs (bank-owned homes), are selling dramatically lower than comparable properties, at an average of 35% less, per RealtyTrac. On the high end of this data is New York State, with a 53% discount for REOs in Q1. It is also worth mentioning short sales, which average at a 9% discount.

   Sharga says that it will take 3 years to sell the nearly 2 Million distressed properties, and about 2 years to clear out the REOs, to which he says, is, "without any new foreclosures at all coming into the system."

   This goes along with the S&P/Case-Shiller figures, where Minneapolis, for example, posted a double-digit 10.0% annual decline ("the first market to be back in this territory since March 2010 when Las Vegas was down 12.0% on an annual basis."). Always eager to end on a bright note, Washington DC was the, "only city where home prices increased on both a monthly and annual basis."

   Where do you think we'll go from here in terms of home prices and inventory?

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

TAGS: #foreclosure #realestate #REO #shortsales

Thanks To Our Armed Forces For Their Major Sacrifices

Hi Everyone,

   As Today is Memorial Day, some folks look at it as a day off to spend in the sun, but on this very day (and always), let's remember the men and women in uniform that are on the front lines protecting us, and sometimes, they pay the price with the "ultimate sacrifice", thus, it is "Memorial Day". It is a day of remembrance, where you should definitely spend time with family and friends, and at the same time, keep our forces in your thoughts and be thankful for what they do for us.

   On a side note, the Pending Home Sales Index for April was released late last week by the National Association of Realtors (NAR), and the result (which is a forward-looking indicator based on contract signings) showed a decrease. More specifically, an overall drop of more than 11.5% from last month and almost 27% from April 2010. Lawrence Yun, NAR chief economist said that, "tight credit is the primary long-term factor holding back the market."

   In closing, have a great day, enjoy the Holiday, and remember our heroes !!

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

TAGS: #armedforces #homesales #NAR #realtor

Home Prices - Look Out For The Herd

Happy Hot, Sticky, Summery Day,

   The one and only Winter fan shouting out to you today !

   When you think about Housing and Real Estate, one of the first things that comes to mind (or should come to mind), are Home Prices. This week, the Federal Housing Finance Agencys (FHFA) released their seasonally adjusted purchase-only house price index, which, as described, is, "calculated using home sales price information from Fannie Mae- and Freddie Mac-acquired mortgages."

   The "skinny" on these numbers boils down to the 2.5% drop in Q1 2011 vs. Q4 2010, and the 5.5% drop from Q1 2010 to Q1 2011. In the actual breakdown of the figures, "the strongest prices", as they were referred, were in the West South Central Division, where prices, "declined only 0.5 percent." Amongst the largest price drops (for the 25 most populated metropolitan areas) was the Atlanta-Sandy Springs-Marietta, GA area, which saw prices drop in excess of 13% from Q1 2010 to Q1 2011. Ouch !

   What does this all mean? "Absolutely nothing!", says Eric Bramlett, a Real Estate Broker in Austin, Texas, who says that all Real Estate is "local", and that the only buyers who are interested in purchasing "anywhere in the United States" are investors. Bramlett says that the, "vast majority of home buyers need to buy a property in a specific city or metro area, and most want to purchase within a sub-market of that area."

   In the world we live in, and the way we are wired, when we hear a market is in decline, many people go into the "Herd" mentality mindset, slap the blinders on, and forge along with those negative thoughts, so in a way, I believe it does effect us, even if indirectly.

   Bramlett provides some solid advice for homeowners and buyers, which is to, "find out where your local market stands, and you will have an accurate read on where you stand as a homeowner or buyer."

   Hopefully, you will read this for knowledge purposes and will not slap on the blinders. Educate yourself, check your desired area for crime, business, expansion, employment, etc. Did we miss anything? We'd love to hear from you.

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

TAGS: #homeprices #FannieMae #FreddiaMac #Atlanta #realestate

Low Housing Inventory As A Common Denominator

Morning Folks,

   Glad to have you here with me.

   This morning, the New Residential Sales figures were released for this past April, and there has been a nice bump over the past month in the sales of new one-family homes, specifically 7.3% above March. Over the longer term (since April 2010), there was a drop of over 23%. Does this come as a shock?

   According to 3 separate sources, not really, as they all cite low inventory as the common denominator.

   Barry Goodhart, a Property Manager, says that there is "less inventory for buyers to choose from", and thus, "The decrease in new houses coming on the market should help support".

   Ken Pozek, a residential real estate agent in Suburban Metro Detroit, says that they are having an "Amazing" sales year, and that, "low inventory is making this a crazy market!"

   Finally, Ken Koenen, LLM Attorney at Law, says that he has, "little faith in the numbers provided.", and that, "too much inventory is owned by the banks", and that, "they are controlling the market place at their whim."

   What are your thoughts? Were you happy about the increase over last month? Concerned over the big drop from last year? We'd love to hear from you.

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

TAGS: #residential #homes #propertymanager

Fear Over The Closing Of Escrow Process?

Good Morning,

   Monday has rolled around today, and summer is fast approaching (WOW!).

   On the topic of "Heat", one of the times we sweat to most is during Closing on a property. As on Ron J. Kuhn, a Sr. Mortgage Planner, says, "Closing" or settlement or "escrow" is listed as one of the top ten problem areas that occurs in a real estate transaction. It is probably the least understood, and most feared, aspect in a property purchase. Misunderstandings about closing costs can result in hundreds or even thousands of dollars of needless expenses, and put seemingly solid deals at risk". If that's not enough to make you sweat, let's examine this topic today.

   "In general: The process is dependent upon conditions set by the lender", says Nigel Swaby of Primary Residential Mortgage, Inc.. Swaby says that the conditions are quite often set by the investor that will, "end up buying the loan on the secondary market.", and adds that With loan buybacks becoming more prevalent, "this is very, very important as no originator wants to buy back loans that can't be sold." Susan Anderson, a Broker with Inspired Real Estate, adds that, "The closing process is generally the same in any transaction, but there are some definite differences depending on whether the transaction involves a traditional sale, short sale, or REO (foreclosed property), as well as whether the(re) is financing involved or the purchase is all-cash."

   As you can imagine, each state has their own unique process, and as Swaby says, "State law will impact the closing process.", and provides the state of Maryland as an example. "Maryland has transfer taxes that are levied on buyer and seller.", he says, but adds that the state specific requirements are "handled by the closing title or escrow company."

   Anderson says that one thing that is unique in California is that, "in Northern California, the escrow and title are usually handled by the same company. In Southern California, they are often different companies. Also, the buyer gets to pick the escrow/title company and the offer negotiation determines who pays for it (usually 50/50)." She says that usually, the escrow officer is in the local community, but says that, "However, with an REO, the selling bank usually picks the escrow/title, but they also pay for it, saving the buyer a big chunk of money. In that case, the escrow is most often handled by a company out of town who is working in a 'bulk' arrangement with the seller."

   Timothy G. Kearney, a Real Estate Attorney in Connecticut, says that Connecticut is an "attorney state" which means, "attorneys do the closings as opposed to an escrow or title agent in a title state." He says that the rules, "can vary from county to county but are, for the most part, standard." Kearney says that the normal process starts with the Execution of a P&S Contract, passes through title search, scheduling of closing, and then all of the settlements and figures are compared and adjusted, ultimately reaching the closing and conveyance of security deeds.

   Anderson says that, "as an agent, I prefer having someone local handle the transaction as it provides the ability to meet face-to-face if a problem arises.", but says that "one of the very best, pleasant, most efficient escrow officers I ever worked with was a woman in Southern California assigned to an REO transaction. And, of course, in California we do not use attorneys as part of the closing process. The real estate agent and broker are responsible for the entire process. I believe have the most rigorous broker license testing in the US."

   Kuhn adds the following comment about the Closing: "This final step to your purchasing a home or property can go smoothly if you take a few precautions beforehand. Knowing what questions to ask and reviewing all documents well in advance of the closing day will prepare you for a hassle-free and smooth closing.

   Good sound advice and good information. Tell us about your state's procedures and what are your suggestions. We'd love to hear from you.

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

TAGS: #escrow #realestate #REO #foreclosure #California #closing

Housing Numbers Down, But Positivity Remains High

Hi Everyone,
   Glad to have you with me here this Friday. How was your week? Did you meet all of your goals? I hope so.

   There were two very important housing numbers released this week, and I'd like to take a look at each of these, along with some commentary on what these numbers mean for the Housing Market and the Economy.

   The first set of numbers released were the New Residential Construction figures for April, which is broken down into Building Permits, Housing Starts, and Housing Completions. Overall, there were minor drops in each of these numbers from the previous month (March), but anywhere from 13% to 35% below the figures from April of 2010.

   Additionally, the National Association of Realtors® (NAR) released their figures for Existing Home Sales, and these did not fare so well, either. Even though the market for Existing Homes made gains in 6 of the last 9 months, the numbers, which represent completed transactions that include single-family, town homes, condominiums and co-ops, dropped almost 1% from March, but almost 13% from April 2010. Some additional notes, per the NAR, show that "Total housing inventory at the end of April increased 9.9 percent", and the very interesting side-note which says that, "First-time buyers purchased 36 percent of homes in April, up from 33 percent in March; they were 49 percent in April 2010 when the tax credit was in place. Investors slipped to 20 percent in April from 22 percent of purchase activity in March; they were 15 percent in April 2010. The balance of sales was to repeat buyers, which were 44 percent in April."

   Although these numbers point to some not-so-good conditions, not everything and everyone is negative on the Housing Market. Jane Frederick, an architect who specializes in custom residences, says that she believes that, "architects are the "canary in the mine" in that we see the slowdowns first and the increase in work first.", and says that they have signed 2 new contracts for new houses in the past three weeks and that their phone, "is ringing more now than it has in the past three years. "I believe that we are finally moving out of this recession", says Frederick.

   "I recently read an article about the severe drop in housing starts and how that will eventually effect supply and prices.", says John Boyd of MeetingWave.com, who adds that, "I'm not suggesting now is the exact time to buy but seems to be getting close with low rates starting to creep up. Not sure when it will happen with the current joblessness, etc., but there are many folks renting houses, adult children living with parents, etc. that eventually we'll hit a solid floor and see an uptick."

   What's your take on the market. Where do you think we are headed? How soon? Why?

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

TAGS: #residentialconstruction #realtors #existinghomes