While leasing, construction and vacancy rates appear more or less flat, leading economic indicators are looking up and expected to bring the commercial markets along in 2012. That’s the upshot of NAR’s latest Commercial Real Estate Outlook along with SIOR’s Commercial Real Estate Index.
NAR Chief Economist Lawrence Yun: “Vacancy rates are expected to trend lower and rents should rise modestly next year. In the multifamily market, which already has the tightest vacancy rates in any commercial sector, apartment rents will be rising at faster rates in most of the country next year. If new multifamily construction doesn’t ramp up, rent growth could potentially approach 7 percent over the next two years.”
Looking at commercial vacancy rates from the fourth quarter of this year to the fourth quarter of 2012, NAR forecasts vacancies to decline 0.6 percentage point in the office sector, 0.4 point in industrial real estate, 0.8 point in the retail sector and 0.7 percentage point in the multifamily rental market.
The Society of Industrial and Office Realtors®, in its SIOR Commercial Real Estate Index, an attitudinal survey of 231 local market experts,1 shows the broad industrial and office markets were relatively flat in the third quarter, in step with macroeconomic trends. The national economy continues to affect the sectors, with 92 percent of respondents reporting the economy is having a negative impact on their local market.
Even so, the SIOR index, measuring the impact of 10 variables, rose 0.6 percentage point to 55.5 in the third quarter, following a decline of 2.6 percentage points in the second quarter. In a split from the recent past, the industrial sector advanced while the office sector declined.
The next commercial real estate forecast and quarterly market report will be released on February 24. (Commercial Source)
Showing posts with label California real estate companies. Show all posts
Showing posts with label California real estate companies. Show all posts
Friday, December 2, 2011
Thursday, December 1, 2011
Beige Book Illustrates Weakness in Real Estate, Pickup in Refinancing
The Federal Reserve released a new market-gauging rendition of its Beige Book Wednesday. The publication recounts signs of “slow to moderate” economic growth across 11 of the 12 Fed districts. The St. Louis district was the lone dissenter, reporting a decline in economic activity.
Residential real estate activity overall was described as “generally sluggish,” while commercial real estate activity was depicted as “lackluster” across most of the nation. Mortgage refinancing, however, was said to have grown at a “rapid pace.”
Beige Book findings are based on commentary and observations collected by the 12 Fed districts from businesses and contacts outside of the central banking system. The latest version covers the reporting period from early October through mid-November.
Overall bank lending increased only “slightly” since the last report, according to the Federal Reserve. However, one bright spot could be found in the refinancing of home loans as homeowners looked to cash in on the period’s rock-bottom interest rates.
From the previous report issued in mid-October, the Fed described loan demand for the most part as “declining.” Then too, the one exception noted was an increase in mortgage refinancing in many districts, but even since then, Fed contacts are seeing greater demand from homeowners applying for a new refinanced loan.
Changes in credit standards and credit quality varied across districts. Philadelphia, Kansas City, San Francisco, and Dallas all reported improvements in loan quality, with Dallas contacts touting a decline in problem loans.
Residential real estate activity overall was described as “generally sluggish,” while commercial real estate activity was depicted as “lackluster” across most of the nation. Mortgage refinancing, however, was said to have grown at a “rapid pace.”
Beige Book findings are based on commentary and observations collected by the 12 Fed districts from businesses and contacts outside of the central banking system. The latest version covers the reporting period from early October through mid-November.
Overall bank lending increased only “slightly” since the last report, according to the Federal Reserve. However, one bright spot could be found in the refinancing of home loans as homeowners looked to cash in on the period’s rock-bottom interest rates.
From the previous report issued in mid-October, the Fed described loan demand for the most part as “declining.” Then too, the one exception noted was an increase in mortgage refinancing in many districts, but even since then, Fed contacts are seeing greater demand from homeowners applying for a new refinanced loan.
Changes in credit standards and credit quality varied across districts. Philadelphia, Kansas City, San Francisco, and Dallas all reported improvements in loan quality, with Dallas contacts touting a decline in problem loans.
Cleveland, Chicago, and St. Louis noted relatively unchanged credit quality. Boston, Richmond, and Atlanta saw some tightening of lending standards.
In New York, bankers reported declining delinquency rates for commercial and industrial loans, but no change in delinquencies for other loan categories.
The central bank says residential real estate activity increased somewhat, but conditions were varied across districts.
Philadelphia, Richmond, Minneapolis, Kansas City, and Dallas reported improvements in their residential real estate markets. New York, Boston, Cleveland, and San Francisco reported flat activity at relatively low levels, while Atlanta and St. Louis indicated decreased sales.
Single-family home construction remained weak, while multifamily construction picked up in New York, Philadelphia, Cleveland, Chicago, and Minneapolis.
On the commercial real estate front, Boston, New York, Chicago, Minneapolis, and San Francisco indicated roughly unchanged activity. Atlanta and Kansas City noted slight improvements. Philadelphia and Dallas reported mixed activity. Richmond and St. Louis noted that vacancy rates increased.
In terms of labor markets, hiring was generally subdued, but some firms with open positions reported difficulty finding qualified applicants.
Stable employment levels or subdued hiring were mentioned by New York, Philadelphia, Cleveland, Atlanta, Chicago, and Dallas. Assessments of labor market conditions were mixed in Richmond and St. Louis, while Minneapolis reported reduced availability of labor.
In Boston, demand for workers at services firms grew, but hiring among manufacturers was limited. In Kansas City, hiring plans among manufacturers remained solid, while expectations of future hiring among manufacturers in Philadelphia nearly doubled.
Meanwhile, Boston, Philadelphia, Cleveland, Richmond, Atlanta, and Minneapolis noted that some firms looking to fill open positions were having difficulty finding qualified workers, particularly for high-skilled manufacturing and technical positions. Atlanta noted there was growing concern that the skills of the unemployed were deteriorating. (DSNews)
In New York, bankers reported declining delinquency rates for commercial and industrial loans, but no change in delinquencies for other loan categories.
The central bank says residential real estate activity increased somewhat, but conditions were varied across districts.
Philadelphia, Richmond, Minneapolis, Kansas City, and Dallas reported improvements in their residential real estate markets. New York, Boston, Cleveland, and San Francisco reported flat activity at relatively low levels, while Atlanta and St. Louis indicated decreased sales.
Single-family home construction remained weak, while multifamily construction picked up in New York, Philadelphia, Cleveland, Chicago, and Minneapolis.
On the commercial real estate front, Boston, New York, Chicago, Minneapolis, and San Francisco indicated roughly unchanged activity. Atlanta and Kansas City noted slight improvements. Philadelphia and Dallas reported mixed activity. Richmond and St. Louis noted that vacancy rates increased.
In terms of labor markets, hiring was generally subdued, but some firms with open positions reported difficulty finding qualified applicants.
Stable employment levels or subdued hiring were mentioned by New York, Philadelphia, Cleveland, Atlanta, Chicago, and Dallas. Assessments of labor market conditions were mixed in Richmond and St. Louis, while Minneapolis reported reduced availability of labor.
In Boston, demand for workers at services firms grew, but hiring among manufacturers was limited. In Kansas City, hiring plans among manufacturers remained solid, while expectations of future hiring among manufacturers in Philadelphia nearly doubled.
Meanwhile, Boston, Philadelphia, Cleveland, Richmond, Atlanta, and Minneapolis noted that some firms looking to fill open positions were having difficulty finding qualified workers, particularly for high-skilled manufacturing and technical positions. Atlanta noted there was growing concern that the skills of the unemployed were deteriorating. (DSNews)
Pending Sales Increase May Point to Budding Market Recovery
The National Association of Realtors’ (NAR) pending home sales index reported strong positive movement over the month of October, rising 10.4 percent from September.
The index, which measures sales contracts but not closings, is also 9.2 percent above its rate a year ago.
In recent months, comparing year-over-year pending home sales was difficult because the homebuyer tax credit in 2010 skewed the results. NAR’s chief economist, Lawrence Yun, says October’s data allows for an “apples to apples” comparison in year-over-year data.
Thus, the monthly and year-over-year increase in sales contracts in October is a positive indication for the market.
However, actual closings might not match contract signings, Yun warns. Historically, he says, contract signings have aligned closely with contract closings, but in the past couple of years friction in the market has widened the gap.
The index, which measures sales contracts but not closings, is also 9.2 percent above its rate a year ago.
In recent months, comparing year-over-year pending home sales was difficult because the homebuyer tax credit in 2010 skewed the results. NAR’s chief economist, Lawrence Yun, says October’s data allows for an “apples to apples” comparison in year-over-year data.
Thus, the monthly and year-over-year increase in sales contracts in October is a positive indication for the market.
However, actual closings might not match contract signings, Yun warns. Historically, he says, contract signings have aligned closely with contract closings, but in the past couple of years friction in the market has widened the gap.
Nonetheless, “I’m actually encouraged by these numbers,” Yun says. This could be the first sign of sustained recovery in the market, he says.
Pending home sales rose in three of four regions in October, falling only in the West, which experienced a 0.3 percent decline to 105.5. The rate, however, is 8.1 percent higher than last year.
The Midwest experienced the greatest increase in contract signings in October, rising 24.1 percent to 88.7. The region’s pending home sales are 13.2 percent above their rate last year.
Pending home sales in the Northeast rose 17.7 percent to 71.3 for the month. The rate is up 3.4 percent from last year.
The South experienced an 8.6 percent increase in October arriving at 99.5 for the month, which is 9.7 percent above the rate recorded in October 2010.
Yun says one factor that may drive purchases is rent rates, which are not only rising but accelerating.
In the past when rental rates rose, home prices rose with them. However, Yun says homes are currently undervalued while rents continue to rise, making home buying an attractive option for some.
“Home sales have been plodding along at a sub-par level while interest rates are hovering at record lows and there is a pent-up demand from buyers who normally would have entered the market in recent years,” Yun says. “We hope this is indicates more buyers are taking advantage of the excellent affordability conditions.” (DSNews)
Pending home sales rose in three of four regions in October, falling only in the West, which experienced a 0.3 percent decline to 105.5. The rate, however, is 8.1 percent higher than last year.
The Midwest experienced the greatest increase in contract signings in October, rising 24.1 percent to 88.7. The region’s pending home sales are 13.2 percent above their rate last year.
Pending home sales in the Northeast rose 17.7 percent to 71.3 for the month. The rate is up 3.4 percent from last year.
The South experienced an 8.6 percent increase in October arriving at 99.5 for the month, which is 9.7 percent above the rate recorded in October 2010.
Yun says one factor that may drive purchases is rent rates, which are not only rising but accelerating.
In the past when rental rates rose, home prices rose with them. However, Yun says homes are currently undervalued while rents continue to rise, making home buying an attractive option for some.
“Home sales have been plodding along at a sub-par level while interest rates are hovering at record lows and there is a pent-up demand from buyers who normally would have entered the market in recent years,” Yun says. “We hope this is indicates more buyers are taking advantage of the excellent affordability conditions.” (DSNews)
Wednesday, November 30, 2011
What foreigners want in Latvian real estate
Local Latvian residents are showing greater interest in standard type apartments near the city center or in residential areas, while foreigners—mostly those interested in obtaining a temporary residence permit—are interested in apartments in new projects or renovated pre-war houses with all the amenities and in a good location, such as the center of Riga or in the resort town of Jūrmala, reports LANĪDA, the Latvian Real Estate Association.
Generally, foreign nationals who wish to obtain a residence permit are looking for property worth 150 000 – 200 000 EUR. The price difference between standard type apartments and new projects is significant, with the average price of standard type apartments at 600 EUR/m2 while new projects prices range from 1000 to 1600 EUR/m2, depending on amenities and location.
Since mid-2010 there is a noticeable increase in the interest by foreign citizens' in real estate acquisition. During this period there were 328 applications from investors about purchasing a property to obtain a temporary residence permit. The largest monetary transaction that has occurred was for 594 000 LVL (845,000 EUR).
Edgars Shins, president of LANĪDA, commented on the news coverage of the market. "It should be noted that talks about the activity growth in the Latvian real estate market are strongly exaggerated. Of course, there is a certain increase in non-resident interest thanks to the relatively simple ways of acquisition of temporary residence permits. Nevertheless, the overall level of change is not especially considerable. The quantity of transactions grew at the beginning of the year and this summer, yet it has remained at the same level during the past few months. We hope the next year will become a year of stabilization for the Latvian real estate market."
Shins also noted that the rental market has picked up speed in response to the country's current economic situation. Until now, Latvian citizens actively sought ownership of apartment, but public opinion is beginning to change. Due to problems in obtaining a credit, the demand for rentals continues to grow. The supply of good apartments is low, so rental prices are gradually rising, up 1.5% in September. Further increases are expected in the next six months, despite the start of the heating season. (ICREA)
Generally, foreign nationals who wish to obtain a residence permit are looking for property worth 150 000 – 200 000 EUR. The price difference between standard type apartments and new projects is significant, with the average price of standard type apartments at 600 EUR/m2 while new projects prices range from 1000 to 1600 EUR/m2, depending on amenities and location.
Since mid-2010 there is a noticeable increase in the interest by foreign citizens' in real estate acquisition. During this period there were 328 applications from investors about purchasing a property to obtain a temporary residence permit. The largest monetary transaction that has occurred was for 594 000 LVL (845,000 EUR).
Edgars Shins, president of LANĪDA, commented on the news coverage of the market. "It should be noted that talks about the activity growth in the Latvian real estate market are strongly exaggerated. Of course, there is a certain increase in non-resident interest thanks to the relatively simple ways of acquisition of temporary residence permits. Nevertheless, the overall level of change is not especially considerable. The quantity of transactions grew at the beginning of the year and this summer, yet it has remained at the same level during the past few months. We hope the next year will become a year of stabilization for the Latvian real estate market."
Shins also noted that the rental market has picked up speed in response to the country's current economic situation. Until now, Latvian citizens actively sought ownership of apartment, but public opinion is beginning to change. Due to problems in obtaining a credit, the demand for rentals continues to grow. The supply of good apartments is low, so rental prices are gradually rising, up 1.5% in September. Further increases are expected in the next six months, despite the start of the heating season. (ICREA)
German rental housing market report: revenues increased
The demand for apartment buildings in the German market has increased significantly last year. Sales in the top 50 cities have risen by 22%, according to a study by the Center for Real Estate Studies (CRES), commissioned by the real estate association IVD.
"The turmoil in the capital markets have increased the interest in property and led to both private and institutional investors to invest more in residential real estate," says Vice-President IVD Jürgen Michael Schick. "In good and medium-sized residential areas there is currently a significant excess of demand observed, which could lead to further price increases."
Berlin, Munich and Hamburg saw the largest percentage of sales, which together represent 46% of sales. In 2010 these three cities had sales totaling 4.77 billion euros. The 10 most populous cities accounted for 71% percent of all revenues of the top 50 cities. The most active apartment building markets are concentrated in Berlin, Hamburg, Munich, Cologne, Frankfurt (Main), Stuttgart, Dusseldorf, Dortmund, Essen and Bremen.
While Munich was among the top three cities in 2010, sales fell by 16% to 905 million euros. The Munich apartment building market is relatively volatile in recent years," says Schick. "This year, it already is looking more positive. In the first half of 2011, sales increased over the same period last year by 30%.” (worldproperties.com)
"The turmoil in the capital markets have increased the interest in property and led to both private and institutional investors to invest more in residential real estate," says Vice-President IVD Jürgen Michael Schick. "In good and medium-sized residential areas there is currently a significant excess of demand observed, which could lead to further price increases."
Berlin, Munich and Hamburg saw the largest percentage of sales, which together represent 46% of sales. In 2010 these three cities had sales totaling 4.77 billion euros. The 10 most populous cities accounted for 71% percent of all revenues of the top 50 cities. The most active apartment building markets are concentrated in Berlin, Hamburg, Munich, Cologne, Frankfurt (Main), Stuttgart, Dusseldorf, Dortmund, Essen and Bremen.
While Munich was among the top three cities in 2010, sales fell by 16% to 905 million euros. The Munich apartment building market is relatively volatile in recent years," says Schick. "This year, it already is looking more positive. In the first half of 2011, sales increased over the same period last year by 30%.” (worldproperties.com)
10 U.S. hotspots for smallest house sizes
Six of the 10 U.S. areas with the smallest homes are in the Midwest, based on the median square footage of homes for sale on Realtor.com in September.
Realtor.com reported that the median size of homes for sale in Washington, D.C., was the smallest in the country that month, at 1,000 square feet. The nation's capital was also the only area to post a median two bedrooms for the typical home -- every state in the top 10 posted a median three bedrooms.
The six Midwestern states among the top 10 with the smallest homes are: Michigan, Iowa, Ohio, Illinois, Missouri and Wisconsin. Two of the states are in the West: Hawaii and California. One Northeast state is on the top 10 list: Maine. Washington, D.C., is the only area in the South to make the list.
The two areas at the top of the list -- Washington, D.C., and Hawaii -- also had the highest median list prices of the bunch: at $432,500 and $575,000, respectively.
The two areas varied widely in lot sizes. While Washington, D.C., had the smallest median lot size among the top 10, at 2,375 square feet, Hawaii's median lot size in September was 21,778 square feet. Maine had the biggest lot size among the top 10, at 44,431 square feet, followed by Wisconsin at 30,000 square feet.
Michigan had the lowest median list price among the 10, at $118,900. The median price data reflects all for-sale property listings on Realtor.com, including land, single-family homes, condos and co-ops. (View the full list of median house sizes for all 50 states and Washington, D.C.)(InmanNews)
Realtor.com reported that the median size of homes for sale in Washington, D.C., was the smallest in the country that month, at 1,000 square feet. The nation's capital was also the only area to post a median two bedrooms for the typical home -- every state in the top 10 posted a median three bedrooms.
The six Midwestern states among the top 10 with the smallest homes are: Michigan, Iowa, Ohio, Illinois, Missouri and Wisconsin. Two of the states are in the West: Hawaii and California. One Northeast state is on the top 10 list: Maine. Washington, D.C., is the only area in the South to make the list.
The two areas at the top of the list -- Washington, D.C., and Hawaii -- also had the highest median list prices of the bunch: at $432,500 and $575,000, respectively.
The two areas varied widely in lot sizes. While Washington, D.C., had the smallest median lot size among the top 10, at 2,375 square feet, Hawaii's median lot size in September was 21,778 square feet. Maine had the biggest lot size among the top 10, at 44,431 square feet, followed by Wisconsin at 30,000 square feet.
Michigan had the lowest median list price among the 10, at $118,900. The median price data reflects all for-sale property listings on Realtor.com, including land, single-family homes, condos and co-ops. (View the full list of median house sizes for all 50 states and Washington, D.C.)(InmanNews)
Luxury residential prices in greater China and Singapore have reached peak, analysts claim
Average capital values fell 0.2% in quarter three of across monitored luxury residential markets in Asia, compared with the positive 1.6% growth recorded in the previous quarter, the latest data shows.
The Residential Index from Jones Lang LaSalle indicates that price growth has slowed steadily from the 7.4% quarter on quarter increase recorded in the third quarter of 2009, but this was the first time that average prices have declined since the first quarter of 2009.Sales activity cooled further in the third quarter of 2011, with fewer launches and sales recorded in most markets as a result of economic uncertainties and ongoing tightening measures by some governments.
Of the eight featured luxury residential markets, only Jakarta and Mumbai saw an increase in capital values during the quarter, while prices remained stable Singapore, Bangkok and Kuala Lumpur and declined across the three Tier I cities in Greater China, namely Hong Kong, Beijing and Shanghai.
Luxury residential prices in Hong Kong edged down marginally by 0.6% quarter on quarter after growing 7.3% in the second quarter and this was due to tighter credit and weakening investor sentiment.
But in the twelve months to the end of the third quarter 2011, Hong Kong still delivered the strongest price performance among the monitored markets, with growth of around 23%. Average prices in Singapore’s luxury prime market remained stable for the fifth consecutive quarter despite slight rental correction. With mortgage and purchase restrictions remaining in place and falling sales volumes in the China Tier I markets, capital values for luxury apartments in Shanghai fell by 0.9%quarter on quarter , while average prices in Beijing fell by 3.4% quarter on quarter.
Prices in Hong Kong and Singapore are also expected to soften over the rest of 2011 and in 2012, partly as a result of projected rental correction as well as weaker investor sentiment. However, South East Asian markets are expected to be more resilient, with overseas workers’ remittances buoying buying demand in Manila, while the Jakarta sales market should be supported by a strong economy.
‘Though sales volume has slackened in the past months, we expect prices to remain stable as on the back of strong fundamentals. Nevertheless, with every global crisis, there will be uncertainties and uncertainties create opportunities. Foreign investors looking for a safe haven to retain wealth will continue to consider Singapore as an attractive and reliable proposition,’ said David Neubronner, head of Residential Project Sales at Jones Lang LaSalle Singapore.
‘Continued strong consumer demand and a buoyant resources sector is fuelling continued growth in Indonesia. Values are rising in spite of economic uncertainly elsewhere. We predict a buoyant luxury residential market for the medium term,’ said Luke Rowe, head of Project Marketing (Residential) at Jones Lang LaSalle Indonesia. (PropertyWire)
Tuesday, November 29, 2011
Holistic Financial Counseling Reduces Re-default Rate: Study
Holistic financial counseling – that which focuses on a borrower’s entire financial situation – can prevent both foreclosures and re-defaults, according to a recent study sponsored by Florida-based special servicer, Outreach Financial Services.
Holistic financial counseling can save servicers up to $71.5 million in losses on a portfolio of 10,000 loans, according to the study conducted by the STRATMOR Group.
According to the white paper released by STRATMOR Group, servicers evade losses of about $3,894 on an average $210,000 loan for each borrower who receives basic counseling. However, this figure increases to between $5,754 and $7,147 when borrowers receive holistic counseling aimed at their total debt and spending patterns.
Holistic financial counseling can save servicers up to $71.5 million in losses on a portfolio of 10,000 loans, according to the study conducted by the STRATMOR Group.
According to the white paper released by STRATMOR Group, servicers evade losses of about $3,894 on an average $210,000 loan for each borrower who receives basic counseling. However, this figure increases to between $5,754 and $7,147 when borrowers receive holistic counseling aimed at their total debt and spending patterns.
When holistic counselors reivew a borrower’s entire financial status – including mortgage debt, credit card debt, car payments, and discretionary spending – they are generally able to help borrowers diminish monthly spending by $200 to $300.
When this savings is added to a reduction in monthly mortgage payment – obtained through a loan modification – the savings can have a significant effect on re-default rates, according to the study.
Using a sample loan modification with a mortgage payment reduction of $550 per month, the added cash savings bring borrowers total savings of $750 to $850 per month.
This total savings will decrease the re-default rate from 41.5 percent to 25.5 percent with $750 in monthly savings or 18 percent with $850 in monthly savings.
“It is clear from the research that using a holistic financial counselling approach, with a focus on spending reduction, improved financial behaviors and adherence to a budget, can significantly reduce foreclosures,” said Bill Magro, President and CEO of Outreach Financial Services.
According to Outreach Financial Services, the benefit-to-cost ratio for holistic counseling will reach or exceed 10:1
Outreach Financial Services partners with the National Foundation for Credit Counseling to provide holistic credit counseling to borrowers at risk of default. (Krista Franks - DSNews.com)
When this savings is added to a reduction in monthly mortgage payment – obtained through a loan modification – the savings can have a significant effect on re-default rates, according to the study.
Using a sample loan modification with a mortgage payment reduction of $550 per month, the added cash savings bring borrowers total savings of $750 to $850 per month.
This total savings will decrease the re-default rate from 41.5 percent to 25.5 percent with $750 in monthly savings or 18 percent with $850 in monthly savings.
“It is clear from the research that using a holistic financial counselling approach, with a focus on spending reduction, improved financial behaviors and adherence to a budget, can significantly reduce foreclosures,” said Bill Magro, President and CEO of Outreach Financial Services.
According to Outreach Financial Services, the benefit-to-cost ratio for holistic counseling will reach or exceed 10:1
Outreach Financial Services partners with the National Foundation for Credit Counseling to provide holistic credit counseling to borrowers at risk of default. (Krista Franks - DSNews.com)
Case-Shiller Puts Home Prices 3.9% Below Last Year
The national reading of Standard & Poor’s closely watched Case-Shiller index registered a 3.9 percent decline during the third quarter of this year when compared to the same period in 2010.
That represents an improvement over the 5.8 percent decline posted in the second quarter, but S&P described home prices as weakening as the third quarter came to an end.
The national index rose by only 0.1 percent between the second and third quarters. S&P says home prices are now back to the levels seen during the first quarter of 2003.
Three cities posted new index lows as of the end of September – Atlanta, Las Vegas, and Phoenix.
Detroit and Washington D.C. were the only two metropolitan areas to post positive annual rates of change, up 3.7 percent and 1.0 percent, respectively. Detroit has now recorded three consecutive months of positive annual rates.
That represents an improvement over the 5.8 percent decline posted in the second quarter, but S&P described home prices as weakening as the third quarter came to an end.
The national index rose by only 0.1 percent between the second and third quarters. S&P says home prices are now back to the levels seen during the first quarter of 2003.
Three cities posted new index lows as of the end of September – Atlanta, Las Vegas, and Phoenix.
Detroit and Washington D.C. were the only two metropolitan areas to post positive annual rates of change, up 3.7 percent and 1.0 percent, respectively. Detroit has now recorded three consecutive months of positive annual rates.
Over the last year home prices in most cities drifted lower, but David M. Blitzer, chairman of the index committee for S&P, says “the plunging collapse of prices seen in 2007-2009 seems to be behind us.”
Still, Blitzer notes that any chance for a sustained recovery in the housing market will need the support of a stronger economy.
Looking at the August-to-September comparisons, 17 of the 20 cities included in S&P’s analysis and both composite readings were down for the month. Only New York, Portland, and Washington D.C. posted positive monthly returns versus August.
The 20-city composite of the Case-Shiller index slipped 0.6 percent in September when compared to the previous month. The 10-city composite was down 0.4 percent.
Both also posted annual rates of decline, with the 20-city reading down 3.6 percent and the 10-city down 3.3 percent from September 2010 levels.
The latest Case-Shiller results showed deeper dives than analysts were expecting, with forecasts for a 3.0 percent annual drop in the 20-city composite.
“It is a bit disturbing that we saw three cities post new crisis lows,” Blitzer said. “For the prior three or four months, only Las Vegas was weakening each month. Now Atlanta and Phoenix have fallen to new lows too.”
On a monthly basis, Blitzer says Atlanta actually posted a record low rate of -5.9 percent in September over August.
“The markets are fairly thin, and the relative lack of closed transactions might be exacerbating the downside,” according to Blitzer.
Still, Blitzer notes that any chance for a sustained recovery in the housing market will need the support of a stronger economy.
Looking at the August-to-September comparisons, 17 of the 20 cities included in S&P’s analysis and both composite readings were down for the month. Only New York, Portland, and Washington D.C. posted positive monthly returns versus August.
The 20-city composite of the Case-Shiller index slipped 0.6 percent in September when compared to the previous month. The 10-city composite was down 0.4 percent.
Both also posted annual rates of decline, with the 20-city reading down 3.6 percent and the 10-city down 3.3 percent from September 2010 levels.
The latest Case-Shiller results showed deeper dives than analysts were expecting, with forecasts for a 3.0 percent annual drop in the 20-city composite.
“It is a bit disturbing that we saw three cities post new crisis lows,” Blitzer said. “For the prior three or four months, only Las Vegas was weakening each month. Now Atlanta and Phoenix have fallen to new lows too.”
On a monthly basis, Blitzer says Atlanta actually posted a record low rate of -5.9 percent in September over August.
“The markets are fairly thin, and the relative lack of closed transactions might be exacerbating the downside,” according to Blitzer.
Monday, November 28, 2011
Rate on 30-year fixed mortgage falls to 3.98%
WASHINGTON – The average rate on the 30-year fixed mortgage hovered above its record low for a fourth straight week. But cheap mortgage rates have done little to boost home sales or refinancing.
Freddie Mac says the rate on the 30-year fixed loan fell to 3.98% percent from 4% the previous week. Seven weeks ago, it dropped to a record low of 3.94%, according to the National Bureau of Economic Research.
The average rate on the 15-year fixed mortgage edged down to 3.3 percent from 3.31%. Seven weeks ago, it too hit a record low of 3.26%.
Rates have been below 5% for all but two weeks this year. Yet this year could be the worst for home sales in 14 years. (USA Today)
Wednesday, November 23, 2011
Happy Thanksgiving
Broker/Owner/Real Estate Auctioneer
Continental Realty Inc.
16 Crow Canyon Court Suite 100
San Ramon CA 94583
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925-548-5461
Tuesday, November 22, 2011
New York City Remains World's Most Expensive Retail Destination in 3Q
Based on new research from CBRE Group, New York City remains the world's most expensive shopping destination as retailers focus on the major fashion capitals, but as the Eurozone crisis continues to impact consumer confidence; rents have leveled off in all global regions in the third quarter of 2011.
"Retailers continued to expand their store networks to gain market share during the third quarter despite concerns regarding consumer confidence," said Anthony Buono, CBRE Executive Managing Director of Retail Services. "In particular, Asia has seen significant levels of occupier demand in destinations such as Singapore, China and India, while retailers in the U.S. and Western Europe have generally remained more cautious."
New York's Fifth Avenue remains the world's most expensive shopping destination, with rents remaining constant at US$1,900 per sq. ft. per annum. The CBRE survey of the world's most expensive global retail cities saw little change in Q3 2011 compared to the previous quarter. Hong Kong (US$1,695 sq. ft. per annum) remained the second-most-expensive retail market, with annual rents in 2011 rising by 52.8%.
Sydney (US$1,224 sq. ft. per annum) retained third in the rankings, while London (US$961 sq. ft. per annum) moved up one position to fourth from Q2 2011 as competition for prime locations in the city's West End led to an annual rental increase of 5.6% in Q3 2011.
Total retail rents at a global level were broadly flat quarter on quarter (-0.6%) in Q3 2011, with the Americas seeing a fall of 2.0% and rents unchanged in the Asia Pacific and Europe, Middle East, and Africa (EMEA) regions. This represents a significant slowdown from earlier in the year, as retailers take a more cautious approach to expansion.
"In spite of the uncertain economic outlook, retailers continue to expand their store networks," said Ray Torto, CBRE's Global Chief Economist. "The emerging markets, particularly Asia, provide attractive opportunities for growth, although prime locations in Europe's biggest cities are also attracting a high level of occupier demand, as consumers increasingly target major destinations with the widest choice of retailers. Overall, however, retailers have been taking a more cautious approach to expansion, resulting in flat rental growth across the globe in the third quarter--a considerable slowdown from earlier in the year."
worldpropertychannel.com
"Retailers continued to expand their store networks to gain market share during the third quarter despite concerns regarding consumer confidence," said Anthony Buono, CBRE Executive Managing Director of Retail Services. "In particular, Asia has seen significant levels of occupier demand in destinations such as Singapore, China and India, while retailers in the U.S. and Western Europe have generally remained more cautious."
New York's Fifth Avenue remains the world's most expensive shopping destination, with rents remaining constant at US$1,900 per sq. ft. per annum. The CBRE survey of the world's most expensive global retail cities saw little change in Q3 2011 compared to the previous quarter. Hong Kong (US$1,695 sq. ft. per annum) remained the second-most-expensive retail market, with annual rents in 2011 rising by 52.8%.
Sydney (US$1,224 sq. ft. per annum) retained third in the rankings, while London (US$961 sq. ft. per annum) moved up one position to fourth from Q2 2011 as competition for prime locations in the city's West End led to an annual rental increase of 5.6% in Q3 2011.
Total retail rents at a global level were broadly flat quarter on quarter (-0.6%) in Q3 2011, with the Americas seeing a fall of 2.0% and rents unchanged in the Asia Pacific and Europe, Middle East, and Africa (EMEA) regions. This represents a significant slowdown from earlier in the year, as retailers take a more cautious approach to expansion.
"In spite of the uncertain economic outlook, retailers continue to expand their store networks," said Ray Torto, CBRE's Global Chief Economist. "The emerging markets, particularly Asia, provide attractive opportunities for growth, although prime locations in Europe's biggest cities are also attracting a high level of occupier demand, as consumers increasingly target major destinations with the widest choice of retailers. Overall, however, retailers have been taking a more cautious approach to expansion, resulting in flat rental growth across the globe in the third quarter--a considerable slowdown from earlier in the year."
worldpropertychannel.com
US Real estate agents to show Mexican MLS property listings
Buyers interested in property in Mexico can now access the entire listing from the Mexico National Association of Real Estate Professionals in English under a new deal with agents in the United States.
The AMPI (Asociación Mexicana de Profesionales Inmobiliarios) will now be shown by US real estate agents on their own websites through the Immobel Global Real Estate platform.The AMPI announcement comes during a wave of new globalization initiatives by Realtor.com and ReMax.com who each launched websites with translated listings recently.
‘AMPI will benefit from much more than just translated listings. Through the Immobel Global Listing Exchange, the AMPI Mexico MLS listings will be shown by up to half of all US Realtors on their own websites, creating a huge market impact,’ said Janet Choynowski, chief executive officer of Immobel.
‘In turn, AMPI members in Mexico will be able to show several hundred thousand MLS listings from the US in Spanish language on their own websites to their local buyers in Mexico,’ she added.
US agents will benefit not only by referring buyers to Mexico, but also by receiving referrals, since buyers from Mexico rank third of the international buyers from 70 countries who invest US$82 billion in US Residential real estate annually.
‘Our members truly appreciate the importance of International buyers and we welcome the chance to build referral opportunities with our colleagues. We expect to use the Immobel service to make sales that will profitable for both US realtors and AMPI members, said Guadalupe Duran, international director of AMPI.
‘The Global Listing Exchange simply provides every listing with more agents who have a vested interest in seeing a sale take place. There is no doubt that international buyers take comfort in having their own local, trusted advisor made a part of the process and their involvement also increases the chances of a sale closing, so this is great news for sellers,’ she said.
Participants in Immobel’s Global Listing Exchange include some of the largest real estate groups and associations in the US including Miami, Washington DC, Long Island, Fort Lauderdale, Las Vegas and Southern California.
Agents in the participating markets are able to select unlimited national and international listings to display to their local buyers. All listings are professionally translated into 13 languages.
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