May saw the highest pending home sales since April 2010, when buyers were motivated to buy homes to take advantage of the homebuyer tax credit. In fact, the latest increase in signed contracts was the 13 consecutive month in year-over-year gains.
The National Association of Realtors' Pending Home Sales Index (PHSI), is a forecast indicator based on contract signings (but not closings). It increased 5.9 percent to 101.1 in May from 95.5 in April and it is 13.3 percent above the May 2011 level of 89.2. The PHSI reached 101.1 in March, which is the highest level since April 2010.
Also according to NAR, the national median existing-home price is expected to rise 3.0 percent this year and another 5.7 percent in 2013.
Wednesday, June 27, 2012
O Homeo, Homeo! Wherefore Art Thou, Homeo?
Hopefully all of my readers read my June 13 post about the lack of inventory and its effect on the housing market. Well, perhaps I can count the New York Times among my followers, because a week after I wrote my post, they wrote an article on the issue.
Where did all of the homes go???
Where did all of the homes go???
Aluminum Awnings: Love Them or Hate Them?
Ah, if ever there has been a love-hate relationship with a feature on a home, I'd rate the aluminum awning as one of the top contenders for that honor. Sure, they serve an excellent purpose when it is raining or snowing and they are keeping you dry. But. they. are. just. so. ugly. What can I say? Looks matter. But beyond being ugly, they are reminiscent of an era in home design that focused heavily on utility and minimally on aesthetics. Wherever you fall on this debate, this recent article in the New York Times will let you know that you are not alone.
Aluminum Awnings
Aluminum Awnings
Wednesday, June 20, 2012
Full-Floor Condo at Trump Plaza!
529 S. Flagler Drive, Units 15 E, F, G, H
West Palm Beach
I have a fabulous listing at Trump Plaza! This full-floor condo is available for rent or purchase. Featuring 7 bedrooms, 10 bathrooms and 9,093 square feet, this property lives like a home with the amenities and security of a full-service building. Three units have been combined into one lavish residence that includes a massive living/family room, an office, a billiards room with a wet bar, a formal dining room and multiple terraces. The fourth unit is separate and functions as guest or staff quarters.
Amenities at Trump Plaza include a valet, concierge, full-service gym, tennis court, two pools, a dock and a theatre room.
The entire 15th floor, comprised of units E, F, G, and H is available for purchase at $3,499,000 or for rent at $19,000/month. The combined three apartments (F, G, H) are available for purchase at $3,250,000 or for rent at $17,500. Unit E may be purchased for $710,000 or rented for $3,800.
Sold Homes in West Palm Beach
Sold Homes in El Cid, Prospect Park and South of Southern neighborhoods since May 1, 2012.
296 Barcelona Rd. sold for $1,875,000 on 6/15.
110 Bunker Ranch Rd. sold for $925,000 on 5/24.
230 Sunset Rd. sold for $671,000 on 6/13.
135 Greenwood Dr. sold for $625,000 on 5/14.
3409 S. Flagler Dr. sold for $478,000 on 5/30.
208 Westminster Rd. sold for $360,000 on 6/13.
3418 Washington Rd. sold for $350,000 5/9.
3213 Vincent Rd. sold for $360,000 on 6/19.
322 Monceaux Rd. sold for $322,000 on 5/31.
228 Santa Lucia Dr. sold for $329,000 on 5/31.
205 Ellamar Rd. sold for $300,000 on 6/15.
343 Rilyn Dr. sold for $271,000 on 5/18.
218 N. Worth Ct. sold for $215,000 on 5/15.
312 Nathan Hale Rd. sold for $231,755 on 5/11.
360 Hunter St. sold for $179,000 on 6/12.
333 Palmetto St. sold for $150,000 on 5/3.
244 Pilgrim Rd. sold for $134,000 on 6/13.
203 Conniston Rd. sold for $86,000 on 5/4.
338 Linda Ln. sold for $99,000 on 5/18.
296 Barcelona Rd. sold for $1,875,000 on 6/15.
110 Bunker Ranch Rd. sold for $925,000 on 5/24.
230 Sunset Rd. sold for $671,000 on 6/13.
135 Greenwood Dr. sold for $625,000 on 5/14.
3409 S. Flagler Dr. sold for $478,000 on 5/30.
208 Westminster Rd. sold for $360,000 on 6/13.
3418 Washington Rd. sold for $350,000 5/9.
3213 Vincent Rd. sold for $360,000 on 6/19.
322 Monceaux Rd. sold for $322,000 on 5/31.
228 Santa Lucia Dr. sold for $329,000 on 5/31.
205 Ellamar Rd. sold for $300,000 on 6/15.
343 Rilyn Dr. sold for $271,000 on 5/18.
218 N. Worth Ct. sold for $215,000 on 5/15.
312 Nathan Hale Rd. sold for $231,755 on 5/11.
360 Hunter St. sold for $179,000 on 6/12.
333 Palmetto St. sold for $150,000 on 5/3.
244 Pilgrim Rd. sold for $134,000 on 6/13.
203 Conniston Rd. sold for $86,000 on 5/4.
338 Linda Ln. sold for $99,000 on 5/18.
Wednesday, June 13, 2012
Do You Need A Real Estate Agent?
Using a real estate agent is an excellent idea in any market, but basically a necessity in a complicated market like the one we are in now. The New York Times, which is not always favorable in its view of real estate agents, just published an interesting article on not only the benefits of having a good agent, but on the different types of agents. The article cited, among others, the hand-holder, an agent who will patiently walk you through every step of the deal and then some; the authority, an agent with a lot of expertise in the market and one who is likely to counter unrealistic expectations; and the legacy broker, who is one agent that helps generations of the same family.
I'll be the first to admit that a good match between a buyer's or seller's personality and an agent's personality is very helpful to getting a deal done and leaving everyone happy. So if you're looking for an agent, check out this article; perhaps some further insight will result.
Which Agent Suits You?
I'll be the first to admit that a good match between a buyer's or seller's personality and an agent's personality is very helpful to getting a deal done and leaving everyone happy. So if you're looking for an agent, check out this article; perhaps some further insight will result.
Which Agent Suits You?
Having Trouble Finding a House You Like?
If you are ready to buy but are having trouble finding a house you want to own, I can point you to the source of your problem: lack of inventory. In April 2012 there were 2.5 million homes for sale nationwide, the lowest inventory since April 2006, according to the National Assosciation of Realtors. The cause? Well, there isn't just one cause. Partial blame can be levied on the banks who are holding approximately five years worth of housing supply that is due to foreclosures.
Another contributor to the paucity of supply are sellers who want to sell but can't afford to because they owe more than their home is worth. And don't forget the professional investors, flush with cash, who are buying up distressed properties and turning them into rentals. Furthermore, new construction is at a historic low, with just 46,000 new single-family homes for sale, which is the lowest number since 1973 when the Census Bureau started keeping track. And just 70,000 single-family homes are currently under construction.
Finally, there is another source for the lack of supply that is actually government-sponsored! The federal government came up with a terrible plan to auction huge groups of government-owned homes to groups of investors to turn into rentals. This plan is bad for the taxpayers. We bailed out the banks and we, not concentrated groups of wealthy investors, deserve first crack at those homes. This is just another example of the redistribution of wealth in our country that is hurting almost everyone.
Luckily for the discouraged buyers out there, I can offer you one suggestion for managing this challenging market: team up with a very good real estate agent, like me! I know about homes that are coming on the market well before they are listed. I also know about which homes are likely to be short sales even if they are not yet listed as short sales. And popular websites like Zillow and Trulia, while helpful, can't keep up with the real time changes that occur in the MLS. By the time you see a good deal listed on Zillow, there are probably already multiple offers on it.
Another contributor to the paucity of supply are sellers who want to sell but can't afford to because they owe more than their home is worth. And don't forget the professional investors, flush with cash, who are buying up distressed properties and turning them into rentals. Furthermore, new construction is at a historic low, with just 46,000 new single-family homes for sale, which is the lowest number since 1973 when the Census Bureau started keeping track. And just 70,000 single-family homes are currently under construction.
Finally, there is another source for the lack of supply that is actually government-sponsored! The federal government came up with a terrible plan to auction huge groups of government-owned homes to groups of investors to turn into rentals. This plan is bad for the taxpayers. We bailed out the banks and we, not concentrated groups of wealthy investors, deserve first crack at those homes. This is just another example of the redistribution of wealth in our country that is hurting almost everyone.
Luckily for the discouraged buyers out there, I can offer you one suggestion for managing this challenging market: team up with a very good real estate agent, like me! I know about homes that are coming on the market well before they are listed. I also know about which homes are likely to be short sales even if they are not yet listed as short sales. And popular websites like Zillow and Trulia, while helpful, can't keep up with the real time changes that occur in the MLS. By the time you see a good deal listed on Zillow, there are probably already multiple offers on it.
Thursday, June 7, 2012
Interested in a Fixer-Upper But Lack the Funds?
It is common knowledge that a fixer-upper can be a great investment. A little cash, a lot of elbow grease and suddenly you've got yourself some equity! And while handyman specials about in this market and interest rates are at historic lows, there is a paucity of lenders will to make home improvement loans. But there is at least one solution out there besides hitting up mom and dad for some dough: the FHA 203(k) loan. This loan, available from approved FHA mortgage lenders, is for borrowers who plan to live in the home and have 3.5 percent of the total loan amount available for a down payment.
First of all, there are limits to how big of a loan you can get from the FHA; in most areas the magic number is $417,000. And the limit for how much you can add to your loan for repairs is $35,000. So make sure you find a home that doesn't need more than that amount in repairs. When you sign a sales contract for the property, make sure the contract is contingent on the buyer receiving a 203(k) loan and contingent upon loan approval for the additional repairs.
The buyer must submit a proposal to the lender detailing the work to be done and the cost estimates. Then the bank will request an appraisal to make sure the buyer is not paying more for the property than an appraiser thinks it is worth after the repairs are made.
Once the lender approves the loan, the loan closes for the purchase price, the repair costs and closing costs. The loan will also include a contingency reserve of 10 to 20 percent of the repair portion of the loan to cover any unexpected repair costs. The repair funds will go into an escrow account at closing. As the repairs are completed, the homeowner requests to retrieve funds from the escrow account in order to pay the contractors. If the necessary repairs preclude living in the home, up to six months of mortgage payments may be added to the cost of the repairs.
First of all, there are limits to how big of a loan you can get from the FHA; in most areas the magic number is $417,000. And the limit for how much you can add to your loan for repairs is $35,000. So make sure you find a home that doesn't need more than that amount in repairs. When you sign a sales contract for the property, make sure the contract is contingent on the buyer receiving a 203(k) loan and contingent upon loan approval for the additional repairs.
The buyer must submit a proposal to the lender detailing the work to be done and the cost estimates. Then the bank will request an appraisal to make sure the buyer is not paying more for the property than an appraiser thinks it is worth after the repairs are made.
Once the lender approves the loan, the loan closes for the purchase price, the repair costs and closing costs. The loan will also include a contingency reserve of 10 to 20 percent of the repair portion of the loan to cover any unexpected repair costs. The repair funds will go into an escrow account at closing. As the repairs are completed, the homeowner requests to retrieve funds from the escrow account in order to pay the contractors. If the necessary repairs preclude living in the home, up to six months of mortgage payments may be added to the cost of the repairs.
Why Single-Family Homes Make Great Investment Properties
Despite losing their homes to foreclosure, many families are unwilling to give up living in a single-family home. So instead of renting apartments, they are renting single-family homes in droves. According to Fannie Mae and based on U.S. Census data, single-family home rentals was the fastest growing segment of the real estate market from 2005-2010 (I know that it is hard to think of any segment of the real estate market growing during that time except for distressed sales). If you are thinking of buying an investment property, a single-family home in a desirable neighborhood is the way to go. If your rental rate is competitive, you'll have people lining up to rent it.
Tuesday, June 5, 2012
Hybrid Cars
I know that this is a real estate blog, but sometimes I find something unrelated to real estate that I think my readers should know about. The U.S. Department of Energy has created a website that allows user to figure out whether purchasing a hybrid car is worth the cost- in other words, whether the extra cost of purchasing a hybrid will be offset by the savings in fuel during the time when you own the car. The website shows how much the hybrid feature adds to the sticker price as compared to a comparable non-hybrid model, how much money it will save every year and how long you'll need to own the car to break even.
http://www.fueleconomy.gov/
http://www.fueleconomy.gov/
Interest Rates
Average rates for the 15-year and 30-year fixed mortgages fell again last week to record lows. The 15-year rate fell to an incredible 2.97 percent, down from 3.04 percent. The 30-year fixed rate dropped from 3.78 percent to 3.75 percent.
Rents Likely to Increase
Marcus & Millchap, the real estate investment company, is predicting apartment rental rate increases in most of Florida's major cities this year. This is due to increased demand for apartments and a lack of new supply. This is good news for landlords but bad news for renters.
One of my clients just told me that his landlord tried to raise his rent. I gave him a strategy to use for negotiating with her that worked extremely well; in fact, he convinced her not to raise his rent! Interested in finding out some great ways to convince your landlord not to raise your rent? Call me at 561-339-3123 so we can talk about it.
One of my clients just told me that his landlord tried to raise his rent. I gave him a strategy to use for negotiating with her that worked extremely well; in fact, he convinced her not to raise his rent! Interested in finding out some great ways to convince your landlord not to raise your rent? Call me at 561-339-3123 so we can talk about it.
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