Research
Here you can find articles & video with the latest news that's important to real estate investors, charts to make the information clear and papers from the best minds in the industry. Click on the headlines to open the full story.
Hipster Real Estate Developers Building for Millennials
Posted: October 4th, 2015
Young real estate developers are using young investors’ money to put young people in young neighborhoods.
John Chaffetz is showing off an apartment building that his development firm, Timberlane Partners, just bought for $7.2 million. He admits it doesn’t look so hot. “This has been treated like a prison camp,” he says of the 32-unit building in Los Angeles’s Echo Park neighborhood. Steel bars stick out of a cinder-block fence, threatening to impale someone. The front door is an ugly metal gate.
But an organic supermarket opened around the corner in November, and a Blue Bottle Coffee just arrived down the block. There’s a farmers market nearby each Friday, and five minutes up Sunset Boulevard is the Silver Lake neighborhood, a nest of hipster cafes and places to buy rare cheese and handmade clothes. Timberlane plans to tear down the building’s security fencing, put terracotta back on the roof, and repair windows that date to its pre-1930 construction. “The goal,” Chaffetz says, “is for this to look like a Moroccan boutique hotel.”
If you’re the sort of twentysomething who needs rhubarb bitters in her cocktail, you’re not going to live just anywhere—and Timberlane co-founders Chaffetz, 32, and Dave Enslow, 37, are counting on that. Much of their Seattle- and Los Angeles-based firm’s strategy is straight out of the developer playbook: buy neglected apartment buildings in promising neighborhoods, renovate, raise rents, and fill them with young professionals. But when fixing up a property, Timberlane takes extra care to provide touches it can market specifically to the perceived whims of millennial tenants. Historically accurate details are a priority. Midcentury Palm Springs architecture inspired the revamp of one dated building, replacing “a lobby that looked like a 1982 funeral home,” Chaffetz says. The company will typically expose brick walls and refinish hardwood floors rather than slap down carpet. It adds amenities for healthier lifestyles. At one site, Timberlane sacrificed five apartments to create a 3,000-square-foot gym with a yoga studio and climbing wall. A building on a popular Seattle bike path got a large bicycle storage and repair room. Where older renters might value ease of parking, millennials want walkable neighborhoods. “They want to drop off their car on a Friday and not see it again until Monday,” Enslow says.
Will Starwood Waypoint-Colony American Merger Set Stage for Further SFR Consolidation?
Posted: September 29th, 2015
Despite investors and industry observers urging Starwood Waypoint Residential Trust to sell, sell, sell to capture the appreciation of the tens of thousands of single-family homes it bought at deep discounts following the Great Recession, Barry Sternlicht, chairman of the group, had another idea: grow, grow, grow.
Los Angeles Apartment Research Report Los Angeles County, Third Quarter 2015
Posted: September 29th, 2015
(click on the title above for the entire report)
Investors Look Past Construction Risks, Pursue Assets
The Los Angeles county multifamily market remains robust as organizations expand their payrolls. While the pace of hiring is slower than its highest level seen during 2013, growth remains broad-based and consistent with a strengthening economy. The new employees of these firms are seeking apartments at a heightened pace as the swelling prices for single-family homes make homeownership impossible for many metro residents. Builders have used these factors to justify adding multiple projects to the pipeline of activity, particularly in downtown Los Angeles, where several luxury towers are underway, and the San Fernando Valley, where more affordable rents can be obtained. Construction in these two areas will outpace demand this year, prompting increases in vacancy as more than 7,000 units come online. The outlook is much brighter in the Westside Cities and the South Bay/Long Beach markets, where technology firms are placing roots and planned completions are more muted. Despite overdevelopment concerns in some areas, vacancy rates will remain sufficiently tight, allowing a rise in average asking rent.
Market participants are unfazed by the construction outlook for multifamily housing, using historically low interest rates and easy access to commercial credit to bid aggressively on properties throughout the county. The resulting environment has led to deteriorating first-year yields as potential buyers place their best offers first, particularly on trophy assets in the Westside Cities and value-add complexes in the San Fernando Valley and South Bay. The average property now yields 5.1 percent, with many prime areas exchanging ownership in the low-4 percent range. Market participants view the elevated level of construction as a transitory issue, focusing on the structural impediments to homeownership to underpin their thesis. As investors weigh a possible interest rate hike from the Federal Reserve for the first time in nearly a decade, transaction velocity will stay elevated. Buyers seeking to deploy capital into the metro will take advantage of the increase in listings, fostering further deterioration in cap rates.
2015 Annual Apartment Forecast
Employment: More than 104,000 workers will find gainful employment this year, a 2.4 percent growth rate. In the previous year, 97,900 jobs were created, a 2.3 percent rise.
Construction: The pace of deliveries will moderate somewhat as more than 8,600 units come to market this year. In 2014, nearly 10,000 rentals were placed into service.
Vacancy: Growing supply will limit net absorption in apartments this year, ushering in a 50-basis-point increase in vacancy to 3.5 percent by year end. Although the market will weaken this year, the average vacancy rate will remain incredibly tight.
Rents: The average effective rent will move up 4.8 percent to $1,870 per month this year. Last year, the average effective rent climbed 6.4 percent.
Report: U.S. Multifamily Investment Hits Historic Four-Quarter Total
Posted: September 29th, 2015
Investment in U.S. multifamily reached $127 billion for the year ending June 30, 2015—the highest four-quarter total in history and representing growth of 36 percent over the 12-month period, according to the latest research from CBRE. The total surpasses the mid-2000s peak of $100 billion achieved in the year ending June 30, 2006.
Toll Brothers, Lennar Bullish on Apartment Rentals Builders beef up investments in the market; vacancies near 15-year low
Posted: September 29th, 2015
By Kris Hudson
Two of the largest U.S. home builders are redoubling their push into the rental-apartment market, despite concerns the red-hot segment is getting overbuilt.
Upscale builder Toll Brothers Inc. has said it intends to expand its apartment-development division, a three-year-old venture that so far has focused on the Boston-to-Washington, D.C., corridor, to build projects across the U.S. In all, Toll plans to double its equity investment in the division to up to $300 million.
Rival Lennar Corp. in July said it has recruited sovereign-wealth funds and institutional investors to create a $1.1 billion fund for building and holding apartments in up to 25 major U.S. markets. Lennar, which will build the fund’s apartments, intends to expand the fund’s equity to $2 billion within a year, executives said.
Harvard: Joint Center for Housing Studies
Posted: September 29th, 2015
Projecting Trends in Severely Cost-Burdened Renters: 2015–2025
Author(s): Allison Charette
Chris Herbert
Andrew Jakabovics
Ellen Tracy Marya
Daniel T. McCue
This report by Harvard University’s Joint Center for Housing Studies and Enterprise Community Partners Inc shows that the number of households spending more than 50 percent of their income on rent is expected to rise at least 11 percent from 11.8 million to 13.1 million by 2025. The report projects a growing renter affordability crisis, with the largest increases expected among older adults, Hispanics and single-person households. The findings suggest that even if trends in incomes and rents turn more favorable, a variety of demographic forces—including the rapid growth of minority and senior populations—will exert continued upward pressure on the number of severely cost-burdened renters.
CONCLUSION
Overall, our analysis projects a fairly bleak picture of severe renter burdens across the U.S. for the coming decade. Under nearly all of the scenarios performed, we found that the renter affordability crisis will continue to worsen without intervention. According to our projections, annual income growth would need to exceed annual rent growth by 1 percent in order to reduce the number of severely burdened renters in 10 years. Importantly, that decline would have a net impact on fewer than 200,000 households, only because continued increases in burdens among minorities would be offset by declines among whites. Under the more likely scenario that rents will continue to outpace incomes, the number of severely rent-burdened households would increase by a range of 1.7 – 3 million, depending on the magnitude.
Given these findings, it is critical for policymakers at all levels of government to prioritize the preservation and development of affordable rental housing. Even if the economy continues its slow recovery and income growth improves, there are simply not enough quality, affordable rental units to house the millions of households paying over half their income in rental costs.
Region’s housing market maintains summer momentum
Posted: September 29th, 2015
Southern California home sales and prices maintained their momentum in August with both rising from their year- ago level, a market tracker said Wednesday.
All six counties recorded gains, CoreLogic reported.
Last month sales of new and previously owned houses and condominiums around the region rose 8 percent from a year ago to 21,352 properties, the company said.
August’s sales total was the highest for the month since 2013 when there were 23,057.
Will Wall Street turmoil affect Southern California housing market?
Posted: September 29th, 2015
Seven years ago when the housing bubble burst, it nearly took down Wall Street and the entire U.S. economy.
This week, the concern was the reverse: That the prospect of an extended dive in the stock market, or even continued volatility, might spook buyers and sellers in Southern California’s housing market — just as it has finally normalized after a bust-and-boom cycle.
Buyout Firms Join U.S. Apartment Hunt as Rentals Surge: Real M&A
Posted: September 29th, 2015
Buyout firms are apartment hunting again.
An affiliate of private equity firm Lone Star Funds agreed this week to acquire apartment real estate investment trust Home Properties Inc. for about $7.6 billion including debt. It marks the largest takeover of a U.S. apartment REIT since the buyout boom of 2007, and more may be on the way.
Luxury House ‘Flippers’ Get a Lift
Posted: October 10th, 2013
Sequoia Real Estate Partners is quoted in this article
By
NICK TIMIRAOS
Nick Sinatra, the owner of a small real-estate investment firm, believes he has found the next big opportunity in the housing market: renovating and flipping million-dollar properties.
Well-heeled investors think Mr. Sinatra is on to something. On Wednesday his company, American Coastal Properties LLC, is set to announce that it has received $50 million from private-equity firm Colony Capital LLC and the Pritzker/Vlock Family Office. While the investment is relatively small for Colony, it could allow ACP to double the number of homes is renovates annually.
The investment by Colony in a boutique firm like ACP is the latest example of how big money is chasing returns in a corner of the housing market typically dominated by mom-and-pop shops.
L.A. landlord Thomas Properties will be sold to Florida REIT
Posted: October 2nd, 2013
Los Angeles commercial landlord Thomas Properties Group Inc., which revived downtown’s massive City National Plaza, is fading from the local landscape.
The company has agreed to be sold to Parkway Properties Group Inc., a real estate investment trust based in Orlando, Fla., for $294 million in stock. The deal, which the two companies value at about $1.2 billion after including the value of debt and other costs, will give Parkway two properties in Houston and five in Austin, Texas.
U.S. Home Prices Climb at Fastest Clip in 7 Years
Posted: October 2nd, 2013
U.S. home prices rose by their fastest pace in more than seven years during July, according to an index released Tuesday, though more recent data suggest price gains could soon moderate.
Prices in 20 major U.S. cities increased 12.4% in July compared to the same month last year, according to the Standard & Poor’s/Case-Shiller index.
Wealthy homeowners want open floor plans, automation
Posted: October 2nd, 2013
Flexible spaces, tech-savvy features and outdoor-oriented living are popular with well-to-do U.S. homeowners, a pair of recent surveys show.
Among the 300 wealthy consumers polled, open floor plans, full automation/wiring and swimming pools topped the list of important amenities, a study by Coldwell Banker Previews International and the Luxury Institute found. Lower priorities for households earning at least $250,000 annually were staff quarters, tennis/sports courts and catering kitchens.
August Southland Home Sale Press Release
Posted: October 2nd, 2013
Southland Median Sale Price Steady Month-to-Month, Up Sharply Year-Over-Year
Southern California home sales were the highest for an August in seven years as strong activity above $300,000 compensated for a dip in sales below that level, as well as fewer cash and investor purchases. The median sale price held steady compared with June and July but rose 24.6 percent from a year earlier, marking the eighth consecutive month with a year-over-year gain over 20 percent, a real estate information service reported.
When Appraisal Hassles Tank a Home Sale
Posted: October 2nd, 2013
In hot markets where bidding wars are common, the property-appraisal process has been short-circuiting transactions, spurring some would-be buyers to walk away.
A few forces are at work. First, many homes are being appraised at a lower price than what buyers have offered on a house. That is because home values are improving so fast in competitive, high-priced markets that “comps,” recent sales of nearby homes with comparable characteristics, haven’t kept up. When the appraisal comes in low, the buyers either lose the loan or must quickly make up the difference with a higher down payment.
Higher Rates Aren’t Enough to Stall Housing
Posted: July 22nd, 2013
The U.S. housing recovery that began unfolding early last year faces its first serious test: In the span of just two months, mortgage rates have jumped by a full percentage point, something that has happened only twice since 1994.
Mortgage rates, which at the beginning of May stood at 3.59% for the average 30-year fixed-rate loan, jumped to 4.68% during the first two weeks of July, the latest available data, according to the Mortgage Bankers Association. That is the highest level in two years.
Foreclosure filings drop to five-year low in U.S. recovery
Posted: July 22nd, 2013
Foreclosure filings in the U.S. fell to a five-year low last month as lenders sought to avoid seizing property and a housing recovery showed signs of taking hold.
The number of default, auction and seizure notices sent to homeowners in April totaled 188,780, down 14 percent from a year earlier and 5 percent from the previous month, according to RealtyTrac Inc. It was the lowest tally since July 2007, before the onset of the biggest housing crash in seven decades, the Irvine, California-based data seller said today in a report.
Lifetime middle-class renters make multi-family attractive to investors.
Posted: July 22nd, 2013
In today’s economy, Americans making anywhere from $30,000 to $70,000 a year continue to struggle to qualify for mortgages in the midst of economic and job uncertainty, says Alan Feldman, CEO of Resource Real Estate.
After analyzing this particular segment of the marketplace, Feldman realized this group is more likely to rent, making multifamily properties a natural investment for his firm.
Southland Home Sales Drop; Record Yr/Yr Gain for Median Sale Price
Posted: July 22nd, 2013
Southern California home sales fell in June amid a still-tight supply of homes for sale, rising mortgage rates and a letup in investor buying. The median sale price rose at a record year-over-year pace to the highest level – $385,000 – in more than five years, a real estate information service reported.
The Rise of the Young Buyer
Posted: July 21st, 2013
Two years ago, when he was 26, Matt Winter paid a little over $1 million for a four-bedroom, Mediterranean-style house in Culver City, an artsy, formerly industrial section of Los Angeles. This month, the now 28-year-old Mr. Winter, who runs his own interior design firm, paid about $1.7 million for his second home, a three-bedroom, Spanish-revival in Westwood, a neighborhood near UCLA.
A new generation is skipping the “starter home” and betting heavily on high-end real estate. Lauren Schuker Blum reports on Lunch Break.
SREP on Fox Business Network
Posted: July 10th, 2013
Our Managing Partner, Bruce Bartlett, was interviewed this morning on Fox Business Network’s Varney & Co. by Stuart Varney.
Apartment Rents Rise, But the Pace Is Slowing
Posted: July 10th, 2013
Apartment landlords are continuing to raise rents, but there are signs that the pace is slowing.
Nationwide, landlords increased rents an average of 0.7% to $1,062 in the second quarter, according to a report to be released Tuesday by Reis Inc., REIS -0.34% a real-estate research firm. While that is a hair above the 0.6% increase notched in the first quarter, it is well below the 1.3% rise achieved a year earlier.
Rising rates have no effect on housing thus far
Posted: July 10th, 2013
Compared to the 1980s, when mortgage rates hovered above 10%, today’s rates remain relatively low. In early May, the 30-year, fixed-rate shot up to 4.46%, before settling back to 4.29% last week, according to Freddie Mac.
However, the recent pace at which they’ve been climbing has many potential homebuyers hesitant to buy a home.
At the end of June, right after rates rose sharply, Trulia ($33.12 -0.2%) surveyed more than 2,000 people to see what their biggest worry would be if they were to buy a home this year.
Of all the consumers surveyed, 41% said their top fear is that mortgage rates would rise before they could actually buy a house. Second to rates, 37% of consumers said they were worried prices would rise before they could buy, and 36% said they wouldn’t find a home for sale that they like.
So how high will rates have to get before consumers become too discouraged to buy a home? Among consumers who intend to buy a home someday, 13% said that mortgage rates of 4% were already too high for them to consider buying a home. Rates had already climbed to 4% at the time of the survey.
Luxury Real-Estate Flippers
Posted: June 28th, 2013
Sequoia Real Estate Partners was interviewed for this article and it contains photos of SREP properties.
By Sanette Tanaka
There is a new breed of quick-change artist on the real-estate front: luxury flippers who focus on high-end properties.
Million-Dollar Flips
Popular before the housing bust, house flipping-where a property is bought, renovated and sold quickly to make a profit-is seeing a comeback nationwide. Rising prices and tight inventory are driving more investors to the upper end of the market. Flips of homes priced at $1 million or more shot up 35% in 2012 compared with 2011, according to market researcher RealtyTrac.
Harvard: The State of the Nation’s Housing 2013
Posted: June 27th, 2013
The long-awaited housing recovery finally took hold in 2012, heralded by rising home prices and further rental market tightening. While still at historically low levels, housing construction also turned the corner, giving the economy a much-needed boost. But even as the most glaring problems recede, millions of homeowners are delinquent on their mortgages or owe more than their homes are worth. Worse still, the number of households with severe housing cost burdens has set a new record.
Click on the title above for the Executive Summary
Asian Investors Dig Into U.S. Property
Posted: June 27th, 2013
Asian investors are pumping money into U.S. commercial real estate at a record pace, pushing real-estate values higher and helping get stalled projects off the ground.
Foreign Investors Eyeing U.S. Real Estate, What it Means for Buyers
Posted: June 27th, 2013
The competition in the housing market is heating up as buyers face off with deep-pocketed investors located both in and outside the U.S.
Foreign investors are playing a big role in the U.S. real estate market and it’s putting upward pressure on home prices. According to new research from real estate website Trulia, from April 2012 to March 2013, foreigners conducted 4.3% of all searches for U.S. properties on its site.
Spiking Mortgages Won’t Derail Housing: Trulia Economist
Posted: June 27th, 2013
Even with their recent rise, mortgage rates are still “incredibly low” by historical standards, so they will not halt the housing recovery, Trulia Chief Economist Jed Kolko told CNBC on Tuesday.
Micro-apartments: The anti-McMansions
Posted: June 27th, 2013
Move over McMansions: These days, pint-sized, micro-apartments are all the rage.
Typically ranging between 180 and 300 square-feet, these tiny apartments are becoming increasingly popular among the young-and-single set and even some retirees, seeking affordable places to live in the nation’s costliest cities.
Climbing Rates Seen Stalling Rise in Values
Posted: June 27th, 2013
The sharp rise in interest rates in recent weeks has raised the specter in the commercial-real-estate industry that nearly four years of steady gains in property values could come to a halt.
Until recently, the low-rate environment had been fueling the rise in property values, even while rents and occupancies generally remained below peak levels amid sluggish growth. Lowering borrowing costs enabled buyers to pay more. Also, low rates increased demand for property from investors who felt yields were too low in the bond market.
Seven Takeaways on Rising Home Sales
Posted: June 27th, 2013
Thursday’s report from the National Association of Realtors that existing-home sales in May rose by 4.2% adds to an upbeat market trend that has unfolded over the past two years. Here are seven takeaways on the sales data:
Experts doubt surge in mortgage rates will rerail housing recovery
Posted: June 27th, 2013
Surging mortgage rates may have little effect on the housing market, at least in the near term, housing experts say.
Mortgage rates rose sharply last week following comments from Federal Reserve Chairman Ben Bernanke that the Fed will begin tapering off its asset purchases later this year if incoming data continues to show the economy is on the mend.
California REO sales hit lowest level in six years
Posted: June 27th, 2013
May sales of real estate-owned properties in California fell into the single digits for the second straight month, descending to the lowest level since October 2007, analysts claim.
The share of REO sales in the state hit 7.2% in May, down from 9.2% in April and also down 22.8% from a year ago, according to the California Association of Realtors.
Meanwhile, the share of equity home sales continued to grow in May, making up nearly four of every five home sales.
Motivated home buyers skip the bidding wars
Posted: June 27th, 2013
Southern California real estate agents are using reconnaissance and back-channel networks to find houses that haven’t yet hit the market. Some even offer bizarre gifts.
Ryan Mathys spent weeks prospecting.
He drove up and down the little avenue in Solana Beach, taking notes and knocking on doors. He scoured public records. He blanketed the seaside neighborhood in northern San Diego County with inquiries.
All the detective work had a dollars-and-cents purpose: to find homes the owners would be willing to sell.
Southern California housing prices are rising sharply, and there’s a shortage of houses available for sale.
May’s Interest Rate Spike in Perspective
Posted: June 27th, 2013
Mortgage interest rates across the US as of June 1, 2013. Source: Altos Research
That’s a big move, people. See last week’s post for our current thinking on the housing impact of higher interest rates. Wow.
If this keeps up in June, I may have to rethink some assumptions about the recovery.
S&P expects home prices to keep rising
Posted: June 27th, 2013
Surging home prices throughout the country have spurred talk of a housing bubble, as many markets are still recovering from the last bubble bursting in 2007.
But Standard & Poor’s Ratings Services states that, although double-digit gains are ultimately unsustainable, we may not have reached bubble status quite yet.
May Southland Home Sale Press Release
Posted: June 27th, 2013
Southland May Home Sales Highest in 7 Years; Median Price Hits 5-Year High
Southern California home sales held at a seven-year high last month thanks to a stronger economy, pent-up demand, low mortgage rates and the widening perception that a home is a good investment. Prices continued to regain lost territory as buyers competed for a thin supply of homes for sale and poured a record amount of cash into the housing market, a real estate information service reported.
Fears of New Housing Bubble Full of Air
Posted: June 27th, 2013
The outbreak of bidding wars for center-hall colonials, split-levels and ranches all over America is more than a little reminiscent of the mid-2000s. Of course, that innocent era, before people understood that home prices can also fall, never had fixed-rate mortgage rates as low as those seen recently. On appearances alone then, it isn’t surprising to hear warnings that another bubble may be brewing.
Builders say housing is back
Posted: June 27th, 2013
Is the housing recovery for real? It looks that way, as a key measure of home builder confidence crossed a major threshold Monday.
The National Association of Home Builders’ index hit 52 in June, marking the first time it has been above 50 in seven years. A reading above 50 indicates that more builders say sales conditions are good rather than poor. The index has been posting gains for the last year, but those moves only indicated that builders thought the market was less bad than it had been.
New Homes Hit Record as Builders Cap Supply
Posted: June 27th, 2013
Home buyers are paying more for newly built homes than they ever have, as U.S. home builders continue pushing up prices and limiting the number of properties hitting the market.
Luxury housing boom in U.S. is still playing out
Posted: June 27th, 2013
ATLANTA — The U.S. luxury home market is being driven to new heights by relatively low prices, low interest rates and a more stable economy than in many countries, experts say.
Buyer interest is recovering quickly, said Kofi Nartey of the Agency in Beverly Hills, who was part of a panel of real estate agents speaking at the National Assn. of Real Estate Editors conference in Atlanta. “That tends to be the trend with the generation now. We get a lot of immediate gratification and bounce back.”
Flippers Ride Housing Wave In California, Homes Bought and Resold Quickly Reach Highest Levels Since 2005
Posted: June 27th, 2013
Rising home prices have fueled the return of a practice that some blamed for inflating the bubble: house flipping.
In California, the number of homes sold in recent months that had been flipped—or bought and resold within six months—has reached the highest levels since late 2005, according to PropertyRadar, a real-estate data firm. About 6,000 homes have been flipped in the state this year through April, or more than 5% of all homes sold statewide.
While flipping is re-emerging nationwide, brokers say it is happening most in California, where home prices have risen sharply over the past year. Six of the 10 largest price gains in major U.S. cities over the past year have been in California, according to Zillow. In April, home values rose by 25% from a year earlier in San Jose, San Francisco and Sacramento, and by 18% in Los Angeles.
Click on the article title to read more
Home prices post strongest gains in 7 years
Posted: June 27th, 2013
Prices on the S&P/Case-Shiller national index rose 10.2% in the first quarter, according to the latest report.
That marked the fourth consecutive quarter of year-over-year gains, says David Blitzer, head of S&P’s index division.
Housing begins to directly contribute to economy
Posted: June 27th, 2013
The housing sector may finally become a direct and meaningful contributor to U.S. economic growth in 2013 and beyond, according to NewOak CEO and Co-Founder Ron D’Vari.
Housing inventory shortage lifts prices
Posted: June 27th, 2013
The home value forecast from Pro Teck Valuation Services reveals the impact low housing inventory has on home prices, which it calls the sold-to-list price ratio.
Click on the article title to read more
Home prices rise by most in seven years
Posted: June 27th, 2013
Single-family home prices rose more than expected in February, posting their best annual rise since May 2006 in a fresh sign the housing recovery remains on track, a closely watched survey showed on Tuesday.
Zillow Forum on the Future of Housing (Part 3, The Future of Housing Demand)
Posted: May 22nd, 2013
This Housing Upturn Looks Like the Real Thing
Posted: May 22nd, 2013
Ever since the recovery began in 2009, a weak housing market has held back the U.S. economy. The first rebound in home prices was lackluster and after only a year was followed by another dip. But the recent upturn in home prices looks like the real thing. One clear sign of a turning point: In March, homeownership hit a 17-year low, while the 12-month gain in home prices was the biggest in seven years. Those two extremes suggest that the market has hit bottom. The people who are least well financed have been squeezed out, while demand is growing among people who can afford to pay higher home prices. If that trend continues – and there are good reasons to believe it will – a substantial burden will be lifted from the U.S. economy.
Industrial Tenants Are Expanding in Southern California
Posted: May 22nd, 2013
For the past five years, industrial tenants have enjoyed a dominant position in Southern California because space was plentiful and landlords were eager to keep their buildings full. Those days are coming to an end as occupancy rates edge higher and landlords push rents.
Home prices rise by most in seven years
Posted: May 22nd, 2013
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Single-family home prices rose more than expected in February, posting their best annual rise since May 2006 in a fresh sign the housing recovery remains on track, a closely watched survey showed on Tuesday.
The S&P/Case Shiller composite index of 20 metropolitan areas gained 1.2 percent on a seasonally adjusted basis compared to January, topping forecasts for 0.9 percent.
Velocity of Southern California homes sales hits fastest pace since 2006
Posted: May 22nd, 2013
Southern California homes sold at the fastest pace for an April in seven years, according to a report from DataQuick.
The surge in demand follows a thawing in pent-up demand for move-up homes and high levels of investor purchases.
Home appraisals no longer derailing sales
Posted: May 22nd, 2013
NEW YORK (CNNMoney)
Consider this one more sign that the housing market is heating up: Appraisers are putting higher values on homes again, allowing for more deals to go through.
During the housing bust, sales were often derailed by low-ball appraisals that fell far shy of a home’s selling price.
For example, if a home cost $500,000 and required a 20% down payment of $100,000, the buyer would need to finance $400,000. But if the appraiser valued the home at $450,000, the buyer would only be eligible for a $360,000 loan — making the home too costly for some buyers.
But now, as home prices climb and housing inventories shrink, appraisers are valuing homes at or above their selling prices, according to Lawrence Yun, chief economist for the National Association of Realtors.
Believe it or not … Phoenix is facing a housing shortage
Posted: May 22nd, 2013
A Phoenix home with 95 bids is just one example of a housing market entering a new and unprecedented phase. Experts with Arizona State University’s W.P. Carey School of Business say the city is heading for a significant housing shortage.
CoreLogic home prices jump more than 10%, but it’s no bubble
Posted: May 22nd, 2013
The latest CoreLogic home price index jumped a whopping 10.5% nationally, but analysts say values are still far away from creating a housing bubble.
This change represents the biggest year-over-year increase since March 2006 and the 13th consecutive monthly increase in home prices nationally, CoreLogic ($27.39 -0.215%) said in a press release.
Densification: Huge Majority of New LA Housing is Apartments and Condos
Posted: May 22nd, 2013
In case you doubted that Los Angeles is densifying, new state data reveals that a huge majority of new housing units are multifamily (meaning apartments and condos), as opposed to single-family. In Los Angeles County, between 2011 and 2013, 87.1 percent of new residential construction was multifamily, according to California Planning & Development Report’s crunching of the numbers from the state Department of Finance.
1Q2013 California Foreclosures Press Release
Posted: May 22nd, 2013
The number of California homeowners entering the foreclosure process plunged to the lowest level in more than seven years last quarter. The unusually sharp drop in the number of mortgage default notices filed by lenders stems mainly from rising home values, a strengthening economy and government efforts to reduce foreclosures, a real estate information service reported.
NAHB: Builder confidence blooms in May
Posted: May 22nd, 2013
After dropping in April, builder confidence turned around in May, reflecting improvement in all three index metrics — current sales conditions, sales expectations and traffic of prospective buyers.
The National Association of Home Builders/Wells Fargo Housing Market Index dropped from an index score of 44 to a revised score of 41 in April before turning back around in May to 44.
The home bidding wars are back!
Posted: April 9th, 2013
NEW YORK (CNNMoney)
The bidding wars are back. Seemingly overnight, many of the nation’s major housing markets have gone from stagnant to sizzling, with for-sale listings drawing offers from a large number of house hunters.
In March, 75% of agents with broker Redfin said their clients’ offers were countered by rival bids, up from 56% who said so in late 2011.
The competition has been most intense in California, where 9 out of 10 homes sold in San Francisco, Sacramento and cities in Southern California drew competing bids during the month. And at least two-third of listings in Boston, Washington D.C., Seattle and New York generated bidding wars.
“The only question is not whether a new listing will get multiple bids but how many it will get,” said Kris Vogt, who manages 14 Coldwell Banker offices in the Sacramento area. One home in an Elk Grove, Calif., subdivision recently received 62 separate bids. The final sale price was for more than $150,000, well above its $129,000 asking price.
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Real Estate Shadow Demand Outweighs its Shadow Inventory
Posted: April 9th, 2013
Quit your yapping about how strong the real estate market is, Simonsen. It’s a fake rally. There is no actual demand.
That’s the bearish argument I’ve been hearing lately. I’m not buying it.
For years we’ve been watching the phenomenon of “Shadow Inventory” of potential homes that need to be sold, and looking for impact on the market. This set of underwater or distressed properties is now shrinking rapidly. The number of homes with underwater mortgages fell by nearly two million last year. According to the Fed, home price gains of 10% will be enough to move 40% of underwater borrowers back above water. These home sellers are highly likely to buy another home in the same or comparable market, off setting new supply with new demand.
Housing’s Shadow Demand
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Southland Begins 2013 With Sales and Price Gains Vs. Year Earlier
Posted: April 9th, 2013
Southern California logged the highest February home sales in six years last month amid relatively strong sales of mid- to high-end properties and a record share of homes sold to absentee buyers. The median sale price edged slightly lower from January but rose nearly 21 percent from a year earlier, marking the 11th straight month in which the median has risen year-over-year, a real estate information service reported.
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Housing Prices Are on a Tear
Posted: April 8th, 2013
The U.S. housing market has broken out of a deep slump, and prices are shooting up faster than anyone thought possible a year ago. For many homeowners, that is a cause for celebration.
But the speed at which prices are rising is prompting murmurs of concern that the Federal Reserve’s campaign to reduce interest rates could be giving the housing market a sugar high.
Prices of existing homes rose 10% in February nationally from a year ago. They have been rising during the seasonally slow winter months—and they show signs of jumping further as the spring buying season gets under way. What’s going on?
Prices of existing homes rose 10% in February nationally from a year ago.
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Private equity firm turns to apartments for housing recovery gains
Posted: March 4th, 2013
Carlyle Group LP (CG), the second-largest private equity firm by assets, has spent about $2.5 billion betting on the U.S. housing recovery since late 2008. Only $10 million has been for single-family homes.
The firm is buying and building apartment properties after investing in about 50 multifamily projects over the past two years, said Robert Stuckey, Carlyle’s head of U.S. real-estate investing. Washington-based Carlyle also is wagering on mortgage bonds that it started to acquire in October 2008 when prices tumbled during the credit crisis.
Carlyle’s Rubenstein: ‘The Fed Has Been a Hero’
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Why Forecasts for the 2013 Housing Market are Too Low
Posted: March 4th, 2013
I’m in Washington DC to talk to the National Association of Business Economics on the state of the housing market. I ran into Lawrence Yun, the chief economist for the National Association of Realtors and he mentioned that he just raised his forecast for 2013 from 4% year over year to 7-8%. That’s pretty bullish. Yun, of course, takes a lot of flack for being an industry cheerleader rather than objective. So he should be bullish, right? I told him he’s still too low.
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January Southland Home Sale Press Release
Posted: March 4th, 2013
Southland Begins 2013 With Sales and Price Gains Vs. Year Earlier
La Jolla, CA—Southern California’s housing market started 2013 with the highest January home sales in six years as sales to investors and cash buyers hovered near record levels and move-up activity remained relatively brisk. The median price paid for a Southland home dipped slightly from December, as it normally does, but jumped 23.5 percent above the year-ago level, a real estate information service reported.
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2012 California Cash Home Sales Press Release
Posted: March 4th, 2013
Record Number of California Homes Bought with Cash
The number of California homes purchased with cash reached an all-time high last year, the result of high investor interest, a difficult mortgage environment, and perceived higher returns on investment, a real estate information service reported.
A total of 145,797 condos and houses were bought without mortgage financing in 2012, a record. That was up from 125,812 in 2011, the previous high. In 2007, as the housing market deflated, cash sales totaled 39,731, according to San Diego-based DataQuick.
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Scarce inventory could limit home sales, boost prices
Posted: March 4th, 2013
January’s pending home sales numbers suggest that inventory shortages will mean a less dramatic increase in sales this year than last, but that home prices will show stronger gains, the National Association of Realtors said today.
Pending home sales were up 4.5 percent from December to January and 9.5 percent from a year ago. At 105.9, NAR’s Pending Home Sales Index was at its highest level since April 2010, when home buyer tax credits helped fuel demand.
An index of reading of 100 is equal to the average level of contract activity during 2001, when the index was created. Existing-home sales in 2001 fell within the range of 5.0 to 5.5 million, which NAR said would be considered normal for the current U.S. population.
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Rental, For-Sale Markets Buck Odds, Rise Together
Posted: March 4th, 2013
The apartment and for-sale housing markets usually compete with each other. Historically, the math has been simple and brutal: If the percentage of people who own homes goes up, then the percentage of people who rent goes down. Good news for housing sales often means bad news for the apartment sector, if the number of households that need homes stays stable.
But what’s happening today is different, according to the economists at the National Association of Realtors (NAR). “Rental demand and housing sales are rising at the same time,” says NAR spokesperson Walter Maloney.
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Big money betting big on housing
Posted: March 4th, 2013
Investors are betting big on the housing recovery.
Hedge funds and private equity firms have been rushing in to buy up companies and assets in every part of the housing supply chain, including undeveloped land, homebuilders, foreclosed homes, and building parts manufacturers.
One of the most notable moves is coming from hedge fund manager John Paulson, best known for his big (and lucrative) bets against subprime mortgages in 2006 and 2007.
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Home Prices Hit a Milestone
Posted: December 27th, 2012
Record-low mortgage rates mean that homeowners have a smaller financial burden for their residences than at any time since the early 1980s.
But here’s the bad news: Rising rents are squeezing many families and leaving them with less to spend.
Several factors have pushed rents up. Rental and apartment housing is in short supply but demand has grown after several years of foreclosures and population growth.
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Tenants Feel Pinch of Rising Rents
Posted: December 27th, 2012
Jake Brumm, with his family in the house they rent in El Cajon, Calif., says landlords ‘have the upper hand.’
Record-low mortgage rates mean that homeowners have a smaller financial burden for their residences than at any time since the early 1980s.
But here’s the bad news: Rising rents are squeezing many families and leaving them with less to spend.
Several factors have pushed rents up. Rental and apartment housing is in short supply but demand has grown after several years of foreclosures and population growth.
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Nearly 7,000 OC homes face foreclosure
Posted: December 19th, 2012
Just more than 6,700 Orange County homes were in some stage of foreclosure in October, figures from housing tracker CoreLogic and the U.S. Census Bureau show.
While that’s down 42 percent from a high of 11,500 homes in the foreclosure pipeline in November 2009, the number of distressed homes still is 20 times greater than before the housing slump hit in 2005.
Apartments catering to Gen Y being built in downtown Glendale
Posted: December 16th, 2012
An apartment complex with small units intended to appeal to young people eager to get away from roommates and parents into a place of their own is nearing completion in downtown Glendale.
The $34-million mixed-use project named Eleve Lofts & Skydeck is designed for the tastes and needs of Generation Y — people between the ages of 20 and 34, said Alan Dibartolomeo of AMF Development.
Research by the Huntington Beach company found that many young adults would prefer to live in a small place alone than to live in a larger space with a roommate, even if it costs more to do so.
AMF razed a former Circuit City electronics warehouse store on the corner of Maryland Avenue and Broadway in Glendale’s urban shopping district to make way for Eleve. It will have three underground parking levels, shops and restaurants at street level, and six stories of apartments with 208 units above the retail spaces.
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Credit Suisse: Home price appreciation will move into 2013
Posted: December 16th, 2012
Home prices increased by about 4% from September 2011 to this September of this year. The trend in home prices is expected to continue into 2013, with further home price appreciation of about 5%, according to Credit Suisse ($24.56 -0.07%).
The improvement is based on continuation of low mortgage rates, home price performance as well as investor and potential homebuyer confidence in the market.
Home price appreciation varied throughout the nation, with some of the hardest hit areas during the crisis — Arizona, California, Florida and Nevada — posting double-digit gains.
“Broadly speaking, continuing HPA should stimulate the overall refinancing environment by opening up credit availability,” the report said.
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The Best Housing Markets for Buyers and Sellers
Posted: December 15th, 2012
The real estate market has been slowly improving since it reached record lows in 2008 and 2009. Existing-home sales rose 2.1% in October and the national median price for an existing home is 11.1% higher than it was one year ago. According to the Federal Reserve’s beige book, the housing industry has experienced substantial improvement and has been a bright spot for the economy this year.
Should Apartment Landlords Worry About an Improving Housing Market?
Posted: December 11th, 2012
In last month’s column, we argued that the strong multifamily market will continue on despite the flood of new supply in the coming years. This month, we tackle another source of concern for landlords and apartment investors. Could further improvements in the housing market dent the current upswing in the apartment market?
More young American adults are leaving the nest
Posted: December 9th, 2012
As the job market improves, more people in their 20s and early 30s are renting and buying, according to real estate experts and government statistics.
WASHINGTON — After riding out the tough economy in their parents’ basements, more young American adults are starting to break out on their own, pushing up the nation’s mobility rate and giving an important boost to the housing market and the broader recovery.
Thanks to improving job prospects and super-low mortgage rates, adults in their 20s and early 30s are moving into their own apartments and buying homes in increasingly greater numbers, according to real estate experts and government statistics.
Housing is adding more vigor to the recovery, report says
Posted: December 9th, 2012
The U.S. housing market is becoming the leading source of strength for the long-sluggish American economic recovery, outpacing both business investment and exports. But even with the return of that crucial linchpin, job growth is expected to remain weak next year, a new report says.
Job growth will be muted in coming months as employers turn to automation to perform tasks and look for highly skilled workers to fill available jobs, said Edward Leamer, director of the UCLA Anderson Forecast.
UCLA forecasters expect the Golden State’s growth to outpace the nation’s over the next two years.
Credit Suisse: Home price appreciation will move into 2013
Posted: December 9th, 2012
Home prices increased by about 4% from September 2011 to this September of this year. The trend in home prices is expected to continue into 2013, with further home price appreciation of about 5%, according to Credit Suisse ($24.42 -0.15%).
The improvement is based on continuation of low mortgage rates, home price performance as well as investor and potential homebuyer confidence in the market.
Home price appreciation varied throughout the nation, with some of the hardest hit areas during the crisis — Arizona, California, Florida and Nevada — posting double-digit gains.
Chapman Univ. Forecast, 6.8% Price Rise in 2013
Posted: December 9th, 2012
Chapman University economists forecast Wednesday that Orange County home prices will rise 6.8 percent in 2013, marking the second consecutive year of rising home values here.
This year’s home prices are projected to be up 4.2 percent, according to the 2013 forecast by Chapman’s Anderson Center for Economic Research.
September SoCal Home Sale Press Release
Posted: December 9th, 2012
La Jolla, CA—Southern California home sales rose sharply in October as move-up buyers joined investors, shifting the mix of homes selling up a notch as foreclosure resales hit a five-year low. The median price paid for a home rose nearly 17 percent from a year earlier, a real estate information service reported.
A total of 21,075 new and resale houses and condos sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was up 18.0 percent from 17,859 sales in September, and up 25.2 percent from 16,829 sales in October 2011, according to San Diego-based DataQuick.
Home prices rise for sixth month in a row in largest U.S. cities
Posted: December 9th, 2012
An index of home prices in the largest American cities rose in September, indicating that low supply and increased demand continue to boost housing.
The Standard & Poor’s/Case-Shiller home price index for the 20 largest metropolitan areas in the country rose 0.3% from August and 3.0% from September 2011. It was the sixth consecutive month-over-month increase and the fourth consecutive year-over-year bump.
Berkshire Bets on Housing Recovery
Posted: November 2nd, 2012
Warren Buffett’s Berkshire Hathaway has made another bet on a recovery in the US housing market, agreeing to lend the conglomerate’s trusted brand to a new venture with Brookfield Asset Management.
Berkshire’s HomeServices of America unit will be the majority owner of a network of franchised real estate agencies, which will begin to offer services next year under the name Berkshire Hathaway HomeServices.
Brookfield will contribute a network of more than 53,000 individual estate agents responsible for $72 billion of residential real estate sales last year. The group acquired the business last year from Prudential Financial, but did not retain the rights to the Prudential name, which are taken back as existing franchise agreements expire.
Mr. Buffett told CNBC this month that he remains bullish on the US economy, which he expects to continue “inching ahead” even as global growth slows.
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Home prices continue upward trend in August
Posted: November 1st, 2012
Home prices in August rose across a broad swath of large American cities, adding further evidence that a housing recovery is taking shape.
The Standard & Poor’s/Case-Shiller home price index for the 20 largest metropolitan areas in the country rose 0.9% from July and 2% from August 2011. It was the fifth consecutive month-over-month increase and the third consecutive year-over-year bump.
Nineteen areas tracked by the index posted gains over July and 17 posted year-over-year increases.
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Flipping houses is once again a booming business
Posted: November 1st, 2012
Not long ago, John Irvin was selling women’s shoes in the Nordstrom at the Pentagon City mall, pulling down about $20 an hour.
Now he flips houses in Northern Virginia — scooping up short sales, rehabbing them and aiming for a quick sell. He has sold three homes and says he netted more than $30,000 in profit each time.
“If I do one house every quarter, I’m making $125,000 a year — at 25 years old,” Irvin said. “All my other friends, they have a 9-to-5 job. They make probably half of what I’m making right now. It’s kind of like hitting the lottery.”
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Property Flippers Are Back as Housing’s New Middle Men
Posted: October 31st, 2012
http://video.cnbc.com/gallery/?video=3000122706
Who can forget the heady days of the housing boom when property flippers would follow condo developers around like hungry wolves, waiting to pounce on new projects before one grain of earth had moved?
Property auctions for single family homes weren’t any different, as novice buyers were scooping up multiple properties only to flip them for a profit in a matter of weeks.
Those days are gone; the price appreciation is gone, and the funding is gone…but apparently the flippers are back. Some of them never left. Close to 100,000 properties were flipped in the first six months of this year, according to RealtyTrac, which defines flipping as a home bought and sold within six months. That is a 25 percent jump from a year ago. But flipping is not what it used to be.
Home ‘flippers’ grab an increasing share of Sacramento housing market
Posted: October 31st, 2012
Homebuyers in today’s market are likely to encounter a lot of fresh paint and spruced-up bathrooms.
That’s because flipped houses, renovated and quickly resold for profit, make up a larger share of the Sacramento region’s housing market than at any time in the past decade, including the height of the housing boom.
About one in 12 homes sold in Sacramento County last month was flipped, meaning it was bought and resold within a six-month period, according to real estate information service DataQuick.
“Flipping was up significantly from a year ago,” said DataQuick analyst Andrew LePage.
Investor Q3 Update & Outlook
Posted: October 25th, 2012
The third quarter saw continued improvement in the residential markets, similar to those we have noted in earlier quarterly updates. Nationally, apartment rents increased approximately 0.8% in the third quarter, representing the seventh consecutive quarter of rental growth, while overall vacancy rates dropped to 4.6%. However, the increase in rents represented the slowest rate of growth since the recovery began in 2010. These results are not surprising as improvement in single-family home prices (up 4.6% in August 2012 versus the prior year, the largest year-over-year increase in six years) – buoyed by continued low interest rates, expanding confidence in the economic recovery, and low levels of inventory for sale – absorbed some of the apartment momentum. The surprising strength in the single-family residential market, highlighted by unusually low supply (click to read more) has perhaps been the most interesting story during the quarter…..
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The Pacific Value Opportunities Fund I is showing remarkable gains
Posted: October 23rd, 2012
Sequoia Real Estate Partners’ Pacific Value Opportunities Fund I has begun to liquidate its mix of value-added (improved) investments in both apartments and single family homes. Based on properties already sold, or in escrow, and valuations from independent sources the PVOF I, which was started in 2010, is on track to generate an annual fund return north of 25%, the vast majority of which goes to its investors. Fund Managers currently anticipate 100% of all invested capital and profits to be distributed to investors by the end of 2013. For more specifics click on the title of this article above.
The Pacific Value Opportunities Fund II Opens October 29th.
Posted: October 23rd, 2012
Sequoia Real Estate Partners latest fund, PVOF II opens to investors October 29th. PVOF II comes on the heels of the highly successful PVOF I, which is on track for a very strong annual Return on Equity, and will capitalize on the current supply and demand imbalance in the single-family market for “turn-key” move-in ready homes. Bruce Bartlett, one of Sequoia’s Managing Partners noted “We’re simply taking our years of successful experience and economies of scale improving apartment communities and applying that to single-family homes. We did this in PVOF I and had great results.” The Fund is relatively small, only $10 million, so based on PVOF I’s success, SREP’s strong track record and investor demand, it is expected to fill quickly.
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Housing is indeed heading higher
Posted: October 22nd, 2012
As Fortune predicted last year, a robust recovery in home prices is under way.
FORTUNE — In spring 2011 this writer penned a controversial cover story titled “The Return of Real Estate” that predicted a strong rebound in housing. At the time, prices and sales were still tumbling, and the prevailing view among economists and pundits was that the slide would drag on and on. But Fortune’s contrarian forecast proved right. By October of last year, new- and existing-home sales and housing starts had begun an upswing that’s been gathering strength ever since — and prices joined the march in early 2012. The data conclusively confirm what Fortune predicted back then: “Housing is back.”
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Home sales slowed in September, but 2nd best in two years
Posted: October 22nd, 2012
NEW YORK (CNNMoney) — The pace of previously owned home sales slowed slightly in September, even as the long-battered housing market showed signs of a broader recovery.
Sales of existing homes sold at an annual rate of 4.75 million, according to a closely watched reading reported Friday from the National Association of Realtors. It was off slightly from the 4.83 million pace the previous month, but up 11% from a year earlier. Despite the slip, September’s pace was the second best in more than two years, trailing only the strong August reading.
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Housing industry recovering faster than many economists expected
Posted: October 18th, 2012
Housing is snapping back faster than many economists had expected, with home builders stepping up production of new homes nationally and fresh foreclosures in California falling to their lowest level since the early days of the bust.
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New housing starts surge 15% in September — best level since ’08
Posted: October 17th, 2012
WASHINGTON — New residential construction starts surged 15% in September to their highest annual rate in more than four years, as the housing sector continued to show signs of a burgeoning rebound.
The number of new privately owned housing units that began construction was up for the third straight month, and rose in September to a seasonally adjusted annual rate of 872,000, the Commerce Department said Wednesday.
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Flipping is On Its Way Back, Thanks to the Hipster Flippers
Posted: October 17th, 2012
Archstone buys apartment complexes in Venice, Marina del Rey
Posted: October 17th, 2012
Archstone adds to its Southern California portfolio, spending more than $100 million on the two properties that combined provide 275 units.
Colorado apartment landlord Archstone broadened its Southern California empire this month by spending more than $100 million on seaside properties in Venice and Marina del Rey.
Archstone, which operates upscale apartments in coastal markets, bought the Frank, a 70-unit complex on Rose Avenue in Venice, for $56.2 million. It also purchased the Bay Club, which has 205 units — and 207 boat slips — on Tahiti Way in Marina del Rey for $43.95 million.
Buyers Back After Foreclosure
Posted: October 17th, 2012
Millions of families lost their homes to foreclosure after the housing crash hit six years ago. Now, some of those families are back in the housing market. Call them the “boomerang” buyers.
It is difficult to quantify the exact number of boomerang buyers, but real-estate agents, mortgage brokers and home builders all say a significant number of new buyers are families and individuals who went through foreclosure as recently as three years ago, the time period that buyers who defaulted on a mortgage must typically wait before becoming eligible for a mortgage backed by the Federal Housing Administration.
Median home price in Southland climbs as supply is squeezed
Posted: October 17th, 2012
Southern California’s median home price climbed to a high not seen in more than four years even as sales plummeted — the latest sign that the housing market is becoming increasingly competitive, with fewer homes available.
Sales declined for the first time in nine months as California experienced a shortage of affordable properties, according to real estate research firm DataQuick. In particular, foreclosed homes hit a nearly five-year low.
The region’s median price was $315,000 last month, up 1.9% from August and 12.5% from September, DataQuick reported.
A new housing boom
Posted: October 17th, 2012
NEW YORK (CNNMoney) — The long-battered housing market is finally starting to get back on its feet. But some experts believe it could soon become another housing boom.
Signs of recovery have been evident in the recent pick ups in home prices, home sales and construction. Foreclosures are also down and the Federal Reserve has acted to push mortgage rates near record lows.
Emerging Trends in Commercial Real Estate Report: “Recovery Anchored in Uncertainty” in 2013
Posted: October 17th, 2012
Commercial real estate’s slow recovery will continue in 2013, according to the Emerging Trends in Real Estate 2013 report released today by PwC and the Urban Land Institute at the ULI Fall Conference taking place in Denver.
The report, generated by surveys and interviews with 900 real estate investors, developers, service providers and lenders, shows expectations that trends that have materialized in recent years will continue in 2013. Namely, gateway cities like San Francisco, New York, Boston and Washington, D.C. continue to be the best bets for investment and development—although there are fledgling concerns that pricing has gotten too heated. As a result, secondary cities may receive more of a boost in the coming months. But growth everywhere will continue to be tepid with gradual improvements in occupancies, rents and values for all property types.
Banks see a housing rebound
Posted: October 13th, 2012
JPMorgan, Wells Fargo post big profit gains as home lending booms
America’s long-suffering housing market may be on the mend, two major banks said as they reported big jumps in profits.
JPMorgan Chase & Co. and Wells Fargo & Co., the nation’s largest home lenders, each reported double-digit quarterly earnings growth Friday. The big jump in profit was thanks largely to a surge in their mortgage businesses, fueled by low interest rates and waves of refinancing.
Is Home Flipping En Vogue Again?
Posted: October 10th, 2012
Arguably some of the most reviled characters involved in the housing bust, home flippers are making a comeback, profiting once again from growing strength in the nation’s hobbled housing market.
In the first six months of 2012, there were almost 100,000 property flips nationwide, according to foreclosure information site RealtyTrac, an increase of 25 percent from 2011 and 27 percent from 2010. Average gross profits were almost $30,000 not including rehab costs.
Economists: Housing recovery finally here
Posted: October 10th, 2012
NEW YORK (CNNMoney) — It’s been a long time coming, but economists surveyed by CNNMoney believe the nation’s housing market has finally turned the corner.
Of the 14 economists who answered questions about home prices in the survey, nine believe that prices have already turned higher or will make that turn later this year. Only three months ago, half of the economists surveyed by CNNMoney believed a turnaround in prices would not take place until 2013 or later.
CoreLogic: Shadow inventory down 10.2 percent
Posted: October 10th, 2012
The nation’s shadow inventory fell to 2.3 million units in July, down 10.2 percent from last July, according to a monthly report, using a new methodology (see below), from real estate data firm CoreLogic released today.
Getting Warmer: Where Rent Prices are Hot (and Where They’re Cool)
Posted: October 10th, 2012
For those looking to live in a locale with an endless summer, it doesn’t come cheap.
On average, renters in Orange County, Calif. pony up more than $1,650 a month for an average two-bedroom apartment, according to new data from Homes.com and ForRent.com. To cover housing costs alone, residents have to rake in about $32 an hour, no small feat in a wage-depressed economy.
Rich NorCal Techies Are Going Nuts Buying SoCal Mansions
Posted: October 10th, 2012
If you’re a tech superstar who’s made gajillions of dollars off of other people’s data (or whatever), of course the next logical step is to come to Los Angeles to be among the real stars. (Here is a social media agent from UTA: “There is a feeling that techies are the new celebrities … When I arrived in Hollywood, everybody had written a screenplay … Now, everyone has an app.” Yuck.)
Interest rates are low, but it’s still hard to get a mortgage
Posted: October 10th, 2012
WASHINGTON — With 30-year mortgage rates hitting new lows and recent borrowers’ payment performance the best by far in decades, you’d think that banks and other lenders might be loosening up on their hyper-strict underwriting standards.
But new national data from inside the industry suggest this is not happening. In fact, in some key areas, standards appear to be tightening even further, and the time needed to close a loan is getting longer.
Housing recovery blossoms
Posted: October 10th, 2012
NEW YORK (CNNMoney) — The U.S. housing industry — crucial to any jobs recovery — showed more signs of strength, according to two reports issued Wednesday.
The Census Bureau said housing starts and permits rose substantially in August. Separately, sales of previously occupied homes climbed 7.8% from a year ago, according to the National Association of Realtors.
Builders started on new homes at an annual rate of 750,000, up 29.1% compared with a year earlier. They applied to build another 803,000 new homes on an annual basis, a 24.5% jump compared with August 2011.
Economists bullish on housing recovery
Posted: October 10th, 2012
Home prices will see steady increases through 2016 starting this year, according to a quarterly survey of more than 100 economists, real estate experts and investment strategists.
The survey, conducted by research and consulting firm Pulsenomics LLC on behalf of real estate search and valuation portal Zillow between Aug. 30-Sept. 14, 2012, asked 113 participants to project the path of the S&P/Case-Shiller U.S. National Home Price Index over the next five years.
Deutsche Bank claims housing correction complete
Posted: October 10th, 2012
Recent indicators showed housing has largely corrected back to pre-bubble levels and affordability, according to a note from Deutsche Bank analysts.
Nationally, home prices dropped roughly 40% from the overheated peak in 2006 to a low in 2009. But the analyst said in a note Thursday that prices are still 30% higher than the millennium average. Incomes, while similarly dented by the financial crisis actually recovered more quickly than prices.
UCLA: Calif. homebuilding to double by ’14
Posted: October 10th, 2012
UCLA economists think homebuilding is ready to enjoy a statewide renaissance – with housing units construction more than doubling in two years.
Their latest UCLA/Anderson California forecast calls for 23,500 home permits pulled by the state’s developers this year – essentially flat vs. 2011. Next year, homebuilding would grow 44 percent and in ’14 jump by an additional 78 percent to 60,200 – highest since 2007. California multifamily construction should by UCLA’s math grow 19 percent this year; 29 percent next year; and double for 2014 to 69,100 – highest in more than a decade.
U.S. home prices make biggest jump in 6 years
Posted: September 4th, 2012
Nationwide home prices shot up 3.8% in July, making their largest year-over-year leap since 2006, according to real estate data provider CoreLogic.
The gain marks the fifth straight rise in the gauge, part of a positive swing following a year and a half of slumps. The last time prices rose so much was in August 2006, when they jumped 4.1%.
Prices in California bounded up 4.4%. Without distressed sales – including foreclosures and short sales – national prices were up 4.3% compared with last July.
An eco-friendly, elegant prefab home
Posted: August 28th, 2012
FORTUNE — Steve Glenn, a successful Silicon Valley entrepreneur and former Apple marketing exec, thinks he’s found a new twist on the world’s second-oldest industry. His Santa Monica construction company, LivingHomes, designs and builds high-quality, modern, superefficient glass-filled abodes that are prefabs — which makes them extremely affordable.
Home prices signal recovery may be here
Posted: August 28th, 2012
NEW YORK (CNNMoney) — A sharp boost in home prices during the spring could signal a recovery in the long-suffering U.S. housing market, according to an industry report issued Tuesday.
The S&P/Case-Shiller national home price index, which covers more than 80% of the housing market in the United States, climbed 6.9% in the three months ended June 30 compared to the first three months of 2012.
Rebuilding the Housing Economy: The Multifamily Boom Will Lead to a Rebound in Homeownership
Posted: August 27th, 2012
We are now in the midst of a boom in multi-family construction, especially in rental apartments. Like housing starts in
general, multi-family starts collapsed from its peak in 2005 of 354,000 units to a nadir of 112,000 units in 2009. Since then starts will have more than doubled to the 260,000 units forecast in 2012. Indeed we would not be surprised to see multi-family starts exceed 400,000 units in 2014. After all the flip side of a falling homeownership rate is a rising rate of home renting.
Eric Sussman Cover Interview in GlobeSt.com
Posted: August 23rd, 2012
EXCLUSIVE
How to Capitalize on Multifamily Investment
LOS ANGELES-The high tide of single-family home foreclosures has turned five million homeowners to renters, and likely longer-term, if not permanent, renters. So says Eric Sussman, managing partner at Sequoia Real Estate Partners. Sussman recently chatted with GlobeSt.com on the subject of multifamily investment and how investors can capitalize.
Fannie Mae paper: What Drives Consumers’ Intentions to Own or Rent
Posted: August 14th, 2012
What Drives Consumers’ Intentions to Own or Rent
“Our analysis found that consumers consider a mix of demographic and
attitudinal drivers in their future “next move” own-rent preferences. Demographics
such as income, age, marital status, and employment status are
the primary drivers of current homeownership status and the own-rent
intention for outright homeowners (those who don’t have a mortgage).
However, attitudes are the key drivers of the own-rent intention for renters
and homeowners with a mortgage – two groups that account for about 80
percent of housing units in the U.S.”
Housing recovery could lift jobs, spending
Posted: August 13th, 2012
NEW YORK (CNNMoney) — Could the real estate freeze finally be thawing?
After years of depressed activity, home prices and new construction have started to pick up in recent months as foreclosures have slowed, suggesting the housing market may have finally bounced off the bottom.
Home Prices Climb as Supply Dwindles
Posted: August 13th, 2012
Home prices rose by their largest percentage in at least seven years during the second quarter, propelled by low inventories of properties for sale and high demand for bargain-priced foreclosures, according to two reports Tuesday.
Prices rose by 2.5% in June from a year ago, and by 6% from the previous quarter, said CoreLogic Inc., a Santa Ana, Calif., data firm. The quarterly jump was the largest since 2005.
Fed to keep interest rates low through 2014
Posted: August 13th, 2012
The Federal Open Market Committee said it will keep interest rates low at least through 2014 but will not yet act on further stimulus to a slow-growing economy.
“The Committee will closely monitor incoming information on economic and financial developments and will provide additional accommodation as needed to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability,” according to the FOMC release Wednesday.
Finally, It Is Time to Buy a House
Posted: August 13th, 2012
Warren Buffett famously once said: “Be fearful when others are greedy, be greedy when others are fearful.”
And if you’re not instinctively scared of the housing market, then global warming, saturated fat, running with scissors and the bogeyman probably aren’t keeping you awake at night, either.
The fact that everyone is scared to dabble in—much less commit to—housing makes it a close-to-perfect investment based on Mr. Buffett’s principle. But buying real estate is a good long-term investment for many more reasons, some of which have only become apparent in recent weeks.
Wall Street’s hottest investment idea: Your house
Posted: August 13th, 2012
FORTUNE –Your house might be a better investment than you think. At least Wall Street seems to think so.
For a while now the conventional wisdom on real estate has been that while home prices might not fall much more, they aren’t likely to go up anytime soon either. The best personal finance advice, then, when it came to buying a house, was to buy as little as possible.
Apparently, though, on Wall Street that common wisdom about home prices is not held by all, or even many. In the past six months or so, a number of investment firms, hedge funds, private equity partnerships and real estate investors have turned into voracious buyers of single-family homes. And not just any homes, but foreclosures. Investment banks, who also want in on the action, are lining up financing options to keep the purchases going.
Rents Increase as Vacancies Dry Up
Posted: July 23rd, 2012
Landlords boosted apartment rents to record levels in the second quarter as demand from tenants sitting out the home-buying market pushed vacancy rates to their lowest point in more than a decade, according to a report to be released Thursday.
Despite the sluggish economy, average rents increased in all 82 markets tracked by Reis Inc., a real estate data firm. Average rents are now at record levels in 74 of those markets and now top $1,000 a month on average in 27 of them, including Miami, Seattle, San Diego, Chicago and Baltimore.
How the West is winning on home prices: Clear Capital
Posted: July 23rd, 2012
Quarterly home values in June improved nationally, continuing a positive trend from the spring. National prices rebounded with quarterly and yearly gains of 1.7%, according to Clear Capital, which forecast continued growth through the remainder of the year.
National home prices picked up notable momentum over last month’s marginal gains of 0.1%, the Truckee, Calif.-based data and valuation company said. It predicted additional growth of 2.5% forecasted through the end of the year.
Biggest gain in Calif. home prices in 2 years, CoreLogic says
Posted: July 23rd, 2012
California home prices in May rose for the second consecutive month on a year-over-year basis — and at the fastest rate since August 2010, market tracker CoreLogic says.
California prices — according to CoreLogic’s all-transactions index — were up at an 1.81 percent annual rate in May after gaining ground at a 0.45 percent annual rate in April. Before then, home prices in the state had fallen on a year-to-year basis for 18 consecutive months, by this math.
June SoCal Home Sale Press Release
Posted: July 23rd, 2012
Southland Home Sales Up From Year Ago; Median Price Climbs to $300K
La Jolla, CA—The number of homes sold in Southern California rose above a year earlier for the sixth month in a row in June, the result of robust investor demand and significant sales gains for mid- to high-end homes. The continuing pattern of fewer foreclosures re-selling and more activity in pricier coastal counties helped the region’s median sale price climb to a two-year high, a real estate information service reported.
The New Housing Security: Rents
Posted: July 23rd, 2012
Four years after mortgage-linked deals played a starring role in the worst financial crisis in decades, banks and real-estate investors are at work on a new type of security tied to the housing market.
This time, financial firms are seeking to engineer deals backed by the rental payments of residents living in previously foreclosed homes.
Buying into a housing comeback
Posted: July 23rd, 2012
FORTUNE — It has happened repeatedly: The housing market shows hints of revving up only to sputter and stall. In fact, by Deutsche Bank’s count, there have been seven false recoveries during the six-year national housing downturn. Now there are signs that a true residential property recovery is under way.
Phoenix Rising
Posted: June 13th, 2012
A San Francisco-based company that buys foreclosed homes and rents them out is finding that the stampede of private cash into the nascent single-family rental sector is changing its business plan: It already is cashing out.
Demographics, New Assumptions Drive Commercial Real Estate
Posted: June 12th, 2012
A turning point has been reached in the economy and both demographics and the assumptions that traditionally drove the commercial real estate industry are shifting.
But while economists speaking on a panel at the Strategic Real Estate Conference held in New York this week agreed that this is a time of incredible change, they also see opportunity.
Shortage of homes for sale creates fierce competition
Posted: June 10th, 2012
The newest problem for the slowly improving housing market isn’t a shortage of serious buyers, it’s a shortage of good homes.
Would-be buyers are packing open houses and scrambling to make offers on properties before they are even listed. Bidding wars are erupting. And real estate agents are vying fiercely to represent the few sellers that do exist.
Biggest O.C. apartment building boom since ’07
Posted: May 27th, 2012
Orange County landlords — enjoying few vacancies and rising rents — are starting a modest building spree of new complexes.
According to apartment tracker Axiometrics, Orange County developers filed for 2,845 units of multi-family housing in the year ended in March. If that pace is kept for the year, 2012 will still be the busiest year since 2007. (Developers permitted 2,914 local units a year since 1992.)
Consumer sentiment reaches post-recession high
Posted: May 27th, 2012
Consumer sentiment rose in May to its highest level since October 2007, despite a tough month on Wall Street and worsening conditions in Europe.
The Thomson Reuters/University of Michigan index climbed to 79.3 in its final May reading, up from a midmonth tally of 77.8 and April’s score of 76.4.
Multifamily only unit to generate profit for GSEs since 2008
Posted: May 27th, 2012
The only profits Fannie Mae and Freddie Mac generated since entering conservatorship in 2008 came from financing multifamily mortgages, according to the inspector general of the Federal Housing Finance Agency.
The GSEs earned a $7 billion gain from their multifamily division between 2008 and the first quarter of 2012. It’s more than overwhelmed by the $208 billion in total losses from the single-family mortgage business, $4 billion in investment losses and $16 billion in what the FHFA OIG called “other losses,” according to a report released Thursday.
Rise in Home Sales Points to Rebound
Posted: May 27th, 2012
Sales of previously owned homes rose at a robust clip in April—and prices jumped—the latest indications that the hard-hit housing market is recovering.
Existing-home sales were up 3.4% from March to a seasonally adjusted annual rate of 4.62 million, the National Association of Realtors trade group said Tuesday. If the pace holds, 2012 could be the strongest year for home sales since 2007, just after the housing boom. The median home price, meanwhile, increased 10.1% from a year earlier to $177,400, the strongest year-to-year gain since January 2006.
Homeownership likely to be delayed for ‘Generation Now’ members
Posted: May 27th, 2012
Most consumers in their 20s are stuck in a holding pattern, a retail industry consultant says. ‘Everything is delayed for them,’ she says.
CHICAGO — Maxine Lauer calls the group of consumers 15 to 34 “Generation Now” because they want what they want and they want it now.
Trouble is, “now” isn’t happening for them, especially for those in the middle of that range, their 20s, who might reasonably be expected to be thinking about buying their first homes.
Generally, though, that’s not something they’re doing, because most of them just can’t, said Lauer, whose Sphere Trending retail industry consulting firm in Waterford, Mich., has studied their attitudes in depth. Basically, she said, they’re stuck in a holding pattern.
“Everything is delayed for them,” Lauer said. “Homeownership is delayed, and they will rent longer. They’re delaying marriage, delaying kids. It’s because their peak earning years are being delayed.”
Southern California housing data signal turnaround
Posted: May 17th, 2012
The region’s median home price rose 3.6% from a year earlier to $290,000 in April, real estate research firm DataQuick of San Diego reported. Construction of new homes jumped last month. Above, a window frame is worked on at a home in San Diego. (Sam Hodgson, Bloomberg / April 20, 2012)
Southern California’s housing market showed signs of turning the corner in April as foreclosures made up the smallest share of sales in four years and the region’s median home price increased for the first time since late 2010.
Among other evidence of improvement, foreclosures dropped significantly in California and other Western states last month, a continuation of a trend that began last fall, according to data firm ForeclosureRadar. A separate report by the nation’s mortgage bankers released Wednesday showed that national delinquencies and foreclosures hit a four-year low, driven largely by declines in states in the West.
Another record low for mortgage rates
Posted: May 13th, 2012
NEW YORK (CNNMoney) — Mortgage interest rates hit new lows this week as both the 30-year and the 15-year fixed-rates fell, according to a weekly survey by Freddie Mac. It was the second consecutive week that rates broke records.
Builder Is Constructing REIT for Home Rentals
Posted: May 9th, 2012
Above, one of the company’s houses in Tolleson, Ariz.
Investors can buy stakes in malls, apartment towers, timber forests and even cellphone towers through real-estate investment trusts. Now, add to the list: single-family homes transformed into rental properties.
Beazer Pre-Owned Rental Homes Inc., which hopes to expand beyond Phoenix and Las Vegas to at least one other, as-yet unidentified market. Within two years, Beazer said the number of rental homes under the new REIT’s control could number in the thousands.
Rents soar as foreclosure victims, young workers seek housing
Posted: May 7th, 2012
Few new units and tight standards for home loans add to the pressure. The average monthly U.S. rent is at an all-time high, and a 10% jump in Los Angeles County over the next two years is forecast.
Renting Prosperity
Posted: May 5th, 2012
Americans are getting used to the idea of renting the good life, from cars to couture to homes. Daniel Gross explores our shift from a nation of owners to an economy permanently on the move—and how it will lead to the next boom.
American family rentals reach 15-year high
Posted: May 4th, 2012
The nation’s homeowner housing vacancy rates declined in the first quarter as supply conditions in the rental sector tighten and the proportion of families in tenancy reached a 15-year high.
Rental vacancies dipped to 8.8% in the quarter, 0.9% lower than a year earlier and 0.6% below the previous quarter, according to the Department of Commerce’s Census Bureau. The homeownership vacancy rate stands at 2.2% in the period, down 0.4% from a year earlier and 0.1% from the fourth quarter of 2011.
Though Outcomes Argue Otherwise, Rent Control Continues to Win Public Support
Posted: May 3rd, 2012
In various polls conducted over the years, over 90 percent of economists agree that rent control is not merely ineffectual, but actually reduces the quantity and quality of housing available.
Housing’s Attractive Formation
Posted: May 1st, 2012
The kids are finally getting out of the house.
More of America’s excess housing inventory got sucked up in the first quarter, the Census Department reported Monday. The share of rental units that were empty fell to 8.8%, from 9.7% a year earlier and the lowest level since 2002. The homeowner vacancy rate (the share of nonrental homes that are empty and waiting to be sold) slipped to 2.2% from 2.6%—still high relative to the prebubble years, but the lowest rate since 2006.
The accuracy of those figures is an open question: On the one hand, there is an unknown amount of shadow inventory that is being kept off the market, while on the other there is evidence that the quarterly vacancy figures are overstated. But the pickup in household formation that is driving vacancy rates lower appears real, according to independent housing economist Thomas Lawler.
KKR Joins Rivals With Real-Estate Push
Posted: May 1st, 2012
Kohlberg Kravis Roberts & Co., one of the original buyout shops, has long resisted getting into real estate. But after years of watching rivals invest billions of dollars in property, KKR finally is making its own big push.
The firm’s $196 million acquisition last week of a Chicago-area shopping mall kicked off what is expected to be a flurry of deals in the months ahead.
U.S. homeownership hits record low: Gallup
Posted: May 1st, 2012
Fifty-three percent of Americans believe their house is worth more today than when they bought it, down significantly from 80% in 2008 and 92% in 2006.
Still, 70% of Americans surveyed said it’s a good time to buy a house.
Americans are also much more positive about the direction of housing prices this year than they were last year.
Housing market may be on rebound at last
Posted: May 1st, 2012
The housing market’s long, cold winter may finally be heading into a springtime thaw.
New data show price declines easing in big cities, sales of new homes improving nationally and foreclosures in California dropping to levels not seen since before the start of the credit crunch nearly five years ago.
The easing of foreclosures is seen as key by many economists, since the glut of these properties being sold at a discount has been a significant drag on home prices.
Warren Buffett on CNBC: I’d Buy Up ‘A Couple Hundred Thousand’ Single-Family Homes If I Could
Posted: April 26th, 2012
Warren Buffett says along with equities, single-family homes are a very attractive investment right now.
Appearing live on CNBC’s Squawk Box, Buffett tells Becky Quick he’d buy up “a couple hundred thousand” single family homes if it were practical to do so.
If held for a long period of time and purchased at low rates, Buffett says houses are even better than stocks. He advises buyers to take out a 30-year mortgage and refinance if rates go down.
March California Home Sale Press Release
Posted: April 24th, 2012
An estimated 37,481 new and resale houses and condos were sold statewide last month. That was up 26.5 percent from 29,630 in February, and up 2.9 percent from 36,417 for March 2011.
The median price paid for a home last month was $251,000, up 5.0 percent from $239,000 in February, and up 0.8 percent from $249,000 for March a year ago.
Apartment demand drives commercial building rebound
Posted: April 22nd, 2012
After an extended lull brought on by the economic downturn, commercial real estate developers are building again.
Some of the activity involves the revival of projects that stopped during the recession, but many others are new from the ground up and mark the return of construction cranes to the Southern California skyline along with the injection of billions of dollars into the local economy.
An intense demand for apartments is the biggest driver of development, as the improving economy supports the formation of new households. But offices, warehouses and stores are also being built, according to real estate brokerage Marcus & Millichap.
“We haven’t had any meaningful construction of any type since 2005 or 2006,” said Hessam Nadji, managing director of research at the brokerage. “A new cycle is beginning.”
Short sales expected to surge this year
Posted: April 20th, 2012
NEW YORK (CNNMoney) — Short sales are rising sharply, offering many struggling homeowners a better alternative to foreclosure in many of the nation’s hardest hit states.
In short sale deals, the sale price of the home is less than what the seller owes. Often, the bank that holds the mortgage takes so long to approve the sale that the deal falls through. But in recent months, the pace of short sales has increased, a trend that should gain momentum, according to RealtyTrac.
Southland Home Sales Up; Median Price Almost Back to Year-Ago Level
Posted: April 20th, 2012
La Jolla, CA—Southern California home sales shot up last month from February amid the usual surge in early-spring shopping, but the gain over a year earlier was modest. Sales of $500,000-plus homes, though a bit lower than last year, jumped 36 percent from February, helping to lift the region’s overall median sale price to a six-month high – and to about where it was in March 2011, a real estate information service reported.
Wall Street Keys On Landlord Business
Posted: April 18th, 2012
Some of the biggest names on Wall Street are lining up to become landlords to cash-strapped Americans by bidding on pools of foreclosed properties being sold by Fannie Mae.
The idea is that the new owners would rent out the homes at first rather than reselling—potentially aiding a housing-market recovery by reducing the number of properties clogging the market. The fact that big-name investors are interested also suggests they anticipate sizable future profits in housing.
Fannie Mae’s Foreclosure Announcement
Fannie Mae’s property sales generate investor interest
Posted: April 18th, 2012
(Reuters) – Some big investors have shown interest in buying foreclosed properties being sold in bulk by Fannie Mae , the largest U.S. home funding source, the Wall Street Journal said citing people familiar with the process.
Under the deal, the investors would have to rent out the properties they buy from Fannie and not sell them for several years, the Journal said.
Entreprenuers will save housing
Posted: April 18th, 2012
By G.U. KRUEGER / SPECIAL TO THE REGISTER
Veteran Southern California real estate analyst G.U. Krueger adds his commentary on the housing market to this blog in a spot we call “Thursday Morning Quarterback.” Here’s his latest installment …
New business formations and entrepreneurial activity are one key to housing’s recovery.
In regard to entrepreneurial spirit, California always leads the nation — despite all the negative talk.
Qualifying for a mortgage has gotten much tougher, analysis shows
Posted: April 15th, 2012
The average successful applicant for a conventional home purchase mortgage in February had a FICO score of 764, well above what was once the norm, and a down payment of 22%.
WASHINGTON — How do you stack up as a potential mortgage candidate in this year’s increasingly tough underwriting environment? Do you have the right stuff — credit score, debt-to-income ratio, equity or down payment — to get you through the minefield?
A new statistical analysis, based on a large sample of all mortgage applications approved and denied in recent months, offers valuable benchmarks for anyone thinking about financing a home purchase or refinancing an existing loan. The study taps into data from the loan processing software used for roughly one-fifth of all new mortgage applications nationwide, supplied by the technology firm Ellie Mae Inc.
Southern California rental market getting more expensive
Posted: April 13th, 2012
The average L.A. County rent is predicted to soar nearly 10% by the end of 2013. Rising rents could help usher in a housing market recovery if enough renters take the plunge into buying.
The average Los Angeles County rent is predicted to soar nearly 10% over the next two years, leading a resurgence of the costly Southland apartment lifestyle.
Southern California’s economic recovery may be halting and tepid, but young workers gaining new employment, a demand for apartment living and scarce construction of units are creating a rental squeeze in the region, according to a report released Wednesday by USC’s Lusk Center for Real Estate.
Builders ready for home construction rebound
Posted: April 13th, 2012
NEW YORK (CNNMoney) — Home builders are getting ready for a stronger construction season, filing for the most building permits in more than three years, in another sign of recovery in the long-battered housing market.
The government reported builders filed for permits at an seasonally adjusted annual rate of 717,000 in February, the strongest reading since October 2008, which was the month after the meltdown in financial markets. It marked a 5.1% rise from January and a 34.3% increase from year-earlier levels.
The one number to watch for a housing recovery
Posted: April 13th, 2012
If you’re waiting for home prices to go up, then you’re missing signs the troubled housing market has finally turned around.
FORTUNE – Over the past few months, many economists have concluded that that the U.S. housing market has reached a turning point and is healing. This may sound hard to believe, since home prices have continued their downward trend. In 2011, prices fell by 4% following nearly a 30% decline since the property bubble peaked in June 2006. They ended the year at a 10-year low.
Rentals outshine single-family home purchases: Zillow
Posted: April 13th, 2012
The nation’s rental market continues to strengthen with some big cities seeing rents rise nearly 15% compared to a year ago.
Nationally, median rents rose 2% from February 2011 to February 2012, while home values fell 4.5% during that period, according to online real estate marketplace Zillow ($36.98 -1.07%).
Chicago metro rents increased 8.6% over the past year, in comparison to an 11% fall in home values over the same period. In the Philadelphia metro, rents rose 14.8% annually while home values fell 5.4% year-over-year.
The Zillow rent index showed year-over-year gains for nearly 68% of metropolitan areas covered by the index. In comparison, only 8% of metro areas covered saw home values rise in the company’s home value index.
Fannie REO inventory declines 27% in 2011
Posted: March 4th, 2012
The year-end inventory of foreclosed homes at Fannie Mae fell for the first time since the housing downturn.
In 2011, Fannie reduced its REO inventory 27% to roughly 118,500, according to its fourth quarter financial filing. Levels increased every year since 2007.
For the first time since the collapse, Fannie sold more REO than it repossessed. In 2011, the government-sponsored enterprise acquired nearly 200,000 properties and sold more than 243,000, the most in the company’s history.
Uncle Sam wants you to rent out its foreclosed homes
Posted: March 4th, 2012
NEW YORK (CNNMoney) — Want to become a landlord in one of the nation’s hardest-hit foreclosure neighborhoods? Well, Uncle Sam has a deal for you.
Fannie Mae (FNMA, Fortune 500) will offer up nearly 2,500 distressed properties in eight locations to investors who are willing to buy them in bulk and rent them out for a set number of years.
The properties, which are located in Atlanta, Phoenix, Las Vegas, Los Angeles/Riverside, and three Florida regions, include all types of housing units, from single-family homes to co-op apartment buildings.
Rents Keep Rising, Even as Housing Prices Fall
Posted: February 27th, 2012
The housing market remains a potent drag on the economy as home prices continue to slip, foreclosed homes fill some neighborhoods and millions of construction workers scramble for jobs.
But one group is sitting pretty: landlords.
Unlike home prices, rents have been rising, up 2.4 percent in January from a year earlier, according to recent data, not adjusted for inflation, released by the Labor Department.
With few rental buildings erected over the last few years, available units are going fast.
New American Dream Is Renting to Get Rich
Posted: February 18th, 2012
Examining 250 properties around the U.S., and going through close to 40 client files to project the financial impact of owning real estate versus liquidating it, Arzaga, an adjunct professor in personal finance at the University of California at Berkeley, found that, “100 percent of the time it was better to rent, rather than own.”
That’s right: 100 percent.
Q&A: What Homeowners Need to Know on the Deal
Posted: February 10th, 2012
The $25 billion foreclosure settlement unveiled Thursday is expected to help many borrowers who are struggling to make their loan payments, owe more than their homes are worth or have lost their homes to foreclosure.
But the rules of the deal are complicated and banks have three years to meet their obligations.
The questions and answers below should help borrowers figure out if they qualify for help and what to expect from the process.
Who does the settlement cover?
Mortgage deal could bring billions in relief
Posted: February 10th, 2012
In the largest deal to date aimed at addressing the housing meltdown, federal and state officials on Thursday announced a $26 billion foreclosure settlement with five of the largest home lenders.
The deal settles potential state charges about allegations of improper foreclosures based on robosigning, seizures made without proper paperwork.
Don’t rush into REITs
Posted: February 7th, 2012
“It is a hunt for yield,” says Mark Luschini, chief investment strategist at Janney Montgomery Scott, noting that investors don’t seem to care where they have to go to collect income as long as they’re being paid.
Therein lies the problem.
Investors flood Southern California housing market in December
Posted: January 23rd, 2012
A record number of investors and second-home buyers flooded the Southern California real estate market in December, though not enough to give sales in the region a bump over the same month a year earlier.
With the investor dominance, low-cost homes reigned. That helped push the region’s median home price back down to its lowest level in 12 months, according to San Diego real estate firm DataQuick.
O.C. Apartments see largest rent hikes in 4.5 years
Posted: January 23rd, 2012
Another round of rent hikes occurred at Orange County’s large apartment complexes last fall, reflecting an ever-tightening market as vacancies continued to fall.
The average asking rent for a large-complex unit in Orange County was $1,561 a month, according to apartment tracker RealFacts.
Navigating a Tight Rental Market
Posted: January 23rd, 2012
The rental market is the tightest it’s been in more than a decade, with only 5.2% of apartments nationwide vacant at the end of 2011, down from a high of 8% in 2009, according to real-estate data firm Reis.
Demand is up as the housing crisis and tighter lending standards have left many people unable to or wary of purchasing a home. And higher demand means average rents are rising, too.
December California & So Cal Home Sales Report
Posted: January 23rd, 2012
An estimated 37,734 new and resale houses and condos were sold statewide last month. That was up 15.5 percent from 32,669 in November, and up 4.2 percent from 36,215 for December 2010. California sales for the month of December have varied from a low of 25,585 in 2007 to a high of 66,503 in 2003, while the average is 44,063. DataQuick’s statistics go back to 1988.
Urban Land Institute, 2012 Emerging Trends in Real Estate
Posted: January 19th, 2012
Interviewees go totally gaga over apartments: buy class A, value-enhance class B, develop from scratch, purchase in infill areas, acquire in gateway cities, or hold in lower-growth markets. “Even buy class C and upgrade, spend a little more, hold a little longer—demand will be there.”
Jones Lang & Lasalle, Apartment Outlook Survey 2012
Posted: January 19th, 2012
Multifamily is, and will remain, the belle of the ball in the commercial real estate sector in the year ahead, according to the respondents of our Apartments Outlook 2012 Survey.
Marcus & Millshap 2012 National Apartment Report
Posted: January 19th, 2012
Proven sustainability in apartment performance, confidence in property values, and access to low cost debt spurred investors to seek arbitrage through value-add strategies.
Mixed-use project to get underway this month in downtown L.A.
Posted: January 15th, 2012
The $160-million One Santa Fe complex will consist of apartments, offices, shops and public outdoor spaces on Santa Fe Avenue between 1st and 4th streets.
Construction will begin this month on One Santa Fe, a long-anticipated $160-million apartment, office and retail development in the arts district of downtown Los Angeles.
The 790,000-square-foot complex will rise on four acres of land on Santa Fe Avenue between 1st and 4th streets that was leased from the Los Angeles County Metropolitan Transportation Authority.
Foreclosures expected to rise, pushing home prices lower
Posted: January 15th, 2012
Banks are getting more aggressive with the 3.5 million U.S. homes with seriously delinquent mortgages, setting the stage for a big wave of foreclosure action this year.
By E. Scott Reckard, Los Angeles Times
California and other states are likely to see an enormous wave of long-delayed foreclosure action in the coming year as banks deal more aggressively with 3.5 million seriously delinquent mortgages.
Ex-Doomsayer: ‘It’s a great time to buy a home’
Posted: January 15th, 2012
A former housing market skeptic has become a housing market booster, telling a gathering of real estate insiders Thursday that now is “a great time to buy a home.”
A Market Builds for Single-Family Rentals
Posted: January 14th, 2012
Waypoint purchased this Antioch, Calif., home for $140,000 and is marketing the rental at $2,049 a month.
SREP: The big money is starting to figure it out. This rental generates over 10% a year in net cash flow.
Private-Equity Fund GI Partners Is Investing in Waypoint, Which Buys Foreclosed Homes and Then Rents Them Out
A private-equity fund that generated big profits by scooping up empty data centers after the technology-stock bust in 2000 is now making a big bet on foreclosed homes.
The fund, GI Partners in Menlo Park, Calif., plans to announce on Wednesday a $250 million investment in Waypoint Real Estate Group, an Oakland-based company that buys foreclosed homes at discounts and rents them out to tenants. The investment is among the largest to date by an institutional investor in the nascent single-family rental space.
Big Funds Build Case for Housing
Posted: December 30th, 2011
Big money is starting to wager on housing.
Hedge funds run by Caxton Associates LP, SAC Capital Advisors LP, Avenue Capital and Blackstone Group LP have been buying housing-related investments, betting on a rebound. And formerly bearish research firm Zelman & Associates now predicts a housing pickup, as does Goldman Sachs Group Inc.
Meeting the Demand in Multifamily: The Investment Mentality
Posted: December 24th, 2011
SREP Note: An important market signal.
Jones Lang LaSalle/RealShare APARTMENTS Outlook 2012 Survey—the experts weigh in
Rising rental rates combined with declining home ownership rates are sounding a clarion call for continued investment in the multifamily sector, according to respondents of Jones Lang LaSalle/RealShare APARTMENTS Outlook 2012 Survey. The survey, completed by more than 150 private investors, real estate brokers, developers, REIT and institutional investors, was conducted in conjunction with RealShare APARTMENTS 2011 Conference, held recently in Los Angeles.
Big Developers Dabble in Apartment Market
Posted: December 24th, 2011
SREP Note: SREP Funds typically acquire and reposition properties for less than the cost of replacement.
ARTICLE, WSJ
Some of the leading U.S. developers of malls and office properties are moving into the apartment business, where demand for new projects is stronger than any other commercial-real-estate sector.
Fueled by the decline in home ownership, the boom in apartment building is attracting commercial-property companies such as Boston Properties Inc., Mack-Cali Realty Corp., SL Green Realty Corp., Simon Property Group Inc. and Macerich Co. They all have either acquired, completed or broken ground on apartment buildings in recent months, or plan to do so next year.
Scheduled foreclosure auctions soar in California
Posted: December 24th, 2011
Banks in November scheduled more than 26,000 homes to be sold at California foreclosure auctions, a 63% increase from October and a sign that a surge in discounted, bank-owned properties is on track to hit the market next year.
Multifamily Construction Drives Housing Starts Jump
Posted: December 24th, 2011
ARTICLE, WSJ
SREP Note: We feel this article is important for investors to note because typically SREP funds acquire and reposition properties for less than their replacement cost.
U.S. home building climbed to the highest level in 19 months during November and construction permits grew, with most of the increase in housing starts coming from multifamily construction.
Home construction last month increased 9.3% to a seasonally adjusted annual rate of 685,000 from October, the Commerce Department said Tuesday. The results were better than forecast. Economists surveyed by Dow Jones Newswires expected housing starts would rise by 0.3% to an annual rate of 630,000.
The increase in November was driven by a 25.3% increase in multi-family homes with at least two units, a volatile part of the market. Construction of single-family homes, which made up about 65% percent of the market, rose only 2.3%.
The Return of Rehab
Posted: December 24th, 2011
ARTICLE, MULTIFAMILY EXECUTIVE
Value-add deals resume as rents trend higher.
With the benefit of hindsight, the idea of “trending rents” was viewed as a deadly sin throughout the downturn.
The irrational exuberance of the last boom period inspired some wildly inaccurate underwriting on rent growth, which often culminated in delinquencies and default. Over the last year, however, value-add rehabs have come back into the spotlight as rent growth resumed in earnest. And that rebound in fundamentals over the last year has been so swift it’s defied upside expectations and inspired further confidence to again start banking on rent growth.
Foreign homebuyers clicking on depressed US housing markets
Posted: December 19th, 2011
ARTICLE, HOUSING WIRE
Foreigners looking to purchase homes in the U.S. are increasing their online search activity for bargains, as sliding home prices continue to attract investors from around the globe — especially Canada.
Florida properties remained the lead attraction for foreign investment in the third quarter, followed by Arizona, Nevada and California, according to traffic on the website for Point2, a Canadian-based real estate marketing company. Those housing markets have experienced the steepest declines in home prices from the sector’s peak in June 2006.
Do You Really Want To Be a Landlord?
Posted: December 19th, 2011
ARTICLE, WSJ
Jeannette Boccini thought she had found a great renter, someone who would take extra good care of her townhouse. Then the nightmare began.
The tenant repeatedly harassed the neighbors, complained that the wood chips in the community playground were toxic, and informed Ms. Boccini on Christmas morning that someone was playing Christmas carols too loudly.
But the final straw was the night the tenant showed up at Ms. Boccini’s door to report there was dust all over the mailbox. “I absolutely flipped,” Ms. Boccini says. “I was like, ‘You don’t like it? Get the hell out of my house.’ ”
Like many these days, Ms. Boccini became a landlord not by choice but because of circumstances beyond her control: namely, the real-estate crash.
Stalled Hollywood Condo Project Reborn as Luxury Rentals
Posted: December 19th, 2011
ARTICLE, LA TIMES
A failed Hollywood condominium development that once symbolized the housing market collapse has been reborn as a $120-million upscale apartment and retail complex.
Construction on the former Madrone came to a halt around the end of 2009 even though the shell of the project was mostly complete. Developer John Laing Homes filed for bankruptcy and the scaffolding-swathed husk of the Madrone was left to weather the elements behind locked gates.
Stronger Lure for Prospective Home Buyers
Posted: December 6th, 2011
ARTICLE, WALL ST JOURNAL
Home prices and mortgage rates have fallen so far that the monthly cost of owning a home is more affordable than at any point in the past 15 years and is less expensive than renting in a growing number of cities.
Where Housing Is Headed
Barclays analyst sees housing rebound coming in 2012
Posted: December 6th, 2011
ARTICLE, HOUSING WIRE
Barclays Capital (BCS: 11.80 -1.01%) analyst Stephen Kim predicts a housing recovery buoyed by improving jobs numbers and the fact prices for nondistressed homes will have stabilized without government support.
“In the absence of a government homebuyer incentives, prices for non-distressed home sales have stabilized for almost a year,” Kim said. “This is the most important trend in the housing industry right now, and we are amazed at how little attention it has been getting from the media and the street. This stability on the part of nondistressed prices has occurred despite a very high share of distressed activity and continued declines in overall prices.”
Apartment occupancy stable, rents on rise
Posted: December 6th, 2011
ARTICLE, LA TIMES
“Apartment demand is benefiting from slight job growth as well as an expanding pool of potential renters,” said Gleb Nechayev, a senior economist for CBRE Group Inc.
Vacancy is down slightly from a year ago and off nearly 2 percentage points from the 2009 peak, the brokerage report said.
Phoenix Realty buys Long Beach apartment complex
Posted: December 6th, 2011
ARTICLE, LA TIMES
New York investment firm Phoenix Realty Group bought a Long Beach apartment complex last month for $34.5 million, the latest in a string of acquisitions targeting Southern California residential properties.
Since December 2010, Phoenix Realty has spent $228 million to acquire and improve 11 apartment complexes in the region. Most of them were in Riverside and San Bernardino counties, where company executives expect to see growing demand from renters even though the Inland Empire was hit hard in the economic downturn.
Apartments Surmount Economic Headwinds to Enter Full Expansion Cycle
Posted: November 18th, 2011
RESEARCH, MARCUS & MILLICHAP
Apartments undeterred by slower economic growth, post universal gains in net absorption. The apartment sector is benefitting from the convergence of several macro demand trends energizing rental markets across the country. The sector largely powered through the summer’s economic pause as net absorption recorded strong gains in the third quarter. Leasing activity did lose some pace from the second quarter, but given the weakness of the labor market and the uncertainty wrought by anemic GDP and crises on both domestic and international fronts, the sector secured enough traction to drive lower vacancy and solid rent growth. Tight
supply conditions will continue to bolster apartment performance, similar to other property sectors, but apartments are thriving from profound shifts in demographic, economic and social patterns.
SoCal rents rise for 14th straight month
Posted: November 16th, 2011
ARTICLE, OC REGISTER
Rents in Southern California rose on an annual basis for the 14th consecutive month, the U.S. Bureau of Labor Statistics reports.
The rent slice of the regional Consumer Price Index shows “rent of primary residence” rising in October at 1.1% annual rate. Local rents fell 0.2% last year — first decline since the mid-1990s. But that trend turned quickly, as regional rents rose at an annual rate of 1.4% in 2011′s first half. We’ll note that October’s advance compares to the local reners’ CPI rising at an annual rate in September of 1.3% and is the smallest rental inflation rate since January. (SoCal rents have averaged 1.1% annual rate of gain the past three years and 4.4% over the past decade. Since 1979, SoCal rents have averaged 4.8% annualized increases.)
UCLA: O.C. home prices to rise 35%
Posted: November 16th, 2011
ARTICLE, OC REGISTER
If you bought a home during housing’s price peak in 2006 or 2007, don’t expect to see its value to get back to what you paid for it by 2017.
But if you buy this year, you could see your home’s value rise around 34.6% within the next six years — a gain of about $149,000 on a median priced home.
That’s the forecast for Orange County home prices unveiled this week by the UCLA Anderson Forecast.
Home prices rise for 5th straight month
Posted: October 31st, 2011
ARTICLE, CNN
Home prices continued a winning streak in August, the fifth straight month of price gains, but remain lower on a year-over-year basis.
A gauge of home prices featuring 20 major cities, the S&P/Case Shiller index, reported Tuesday that prices rose 0.2% in August but were still down 3.8% year over year.
“Even though the [year-over-year] rates are improving, national home prices are still below where they were a year ago,” said David Blitzer, a spokesman for S&P.
Overall, the market is treading water and there doesn’t seem to be any reason to suspect that’s going to change soon.
California housing starts up 10% on multifamily strength
Posted: October 31st, 2011
California housing starts rose 10% in September from a year earlier as apartment and condominium construction surged, offsetting a decline in single-family homes, according to data from the California Building Industry Association.
Permits for single-family homes fell 16% from September 2010, totaling 1,463, while multifamily permits rose 45% from a year earlier, to 1,828, statistics compiled by the Construction Industry Research Board show.
Freddie Mac: Rental housing rises in 2011
Posted: October 21st, 2011
ARTICLE, HOUSINGWIRE
Despite the most affordable buying market in decades, households across the country are slowly choosing rentals versus homeownership, signaling a positive economic trajectory for the multifamily sector, according to Freddie Mac’s October 2011 economic outlook report released Monday.
California Foreclosure Activity Back Up
Posted: October 21st, 2011
PRESS RELEASE, DATA QUICK
After dropping to a three-year low in the second quarter of this year, the number of California homeowners being pulled into the foreclosure process snapped back to prior levels over the last three months, a real estate information service reported.
A total of 71,275 Notices of Default (NoDs) were recorded at county recorders offices during the third quarter. That was up 25.9 percent from 56,633 for the prior three months, and down 14.4 percent from 83,261 in third-quarter 2010, according to San Diego-based DataQuick.
Foreigners’ Sweetener: Buy House, Get a Visa
Posted: October 21st, 2011
ARTICLE, WALL ST. JOURNAL
The reeling housing market has come to this: To shore it up, two Senators are preparing to introduce a bipartisan bill Thursday that would give residence visas to foreigners who spend at least $500,000 to buy houses in the U.S.
The provision is part of a larger package of immigration measures, co-authored by Sens. Charles Schumer (D., N.Y.) and Mike Lee (R., Utah), designed to spur more foreign investment in the U.S.
Housing Lift Proves Fleeting
Posted: October 21st, 2011
ARTICLE, WALL ST JOURNAL
Sales of previously owned homes slipped in September as Americans were hit by economic uncertainty, high unemployment and tight lending.
Data Thursday highlight how jobs and housing are the main economic drags. Job seekers in California this week.
Existing-home sales dropped 3% to a seasonally adjusted 4.91 million in September, the National Association of Realtors said Thursday. That followed a sales bump in August, as the housing market remains stuck in neutral despite lower prices and interest rates at near-historic lows.
Southland Home Sales Up – Barely – from Year Ago, Median Price Dips Again
Posted: October 17th, 2011
PRESS RELEASE, DATAQUICK
Southland Home Sales Up – Barely – from Year Ago, Median Price Dips Again
Historic United Artists building sells for $11 million. Also: A luxury housing complex near USC is bought, and a study of CBRE Group’s portfolio finds that environmentally sustainable office buildings generate stronger investment returns.
Posted: October 17th, 2011
ARTICLE, LA TIMES
A storied Los Angeles theater and office complex built by silent film stars that was later owned by one of the city’s most popular televangelists has been purchased by East Coast investors.
Also: A luxury housing complex near USC is bought, and a study of CBRE Group’s portfolio finds that environmentally sustainable office buildings generate stronger investment returns.
Southland office rents, occupancy rates stay low
Posted: October 16th, 2011
ARTICLE, LA TIMES
It was another stale quarter for most Southern California office landlords as rents and occupancy remained stalled at low levels, except in neighborhoods favored by technology and digital media companies.
The soft market was a boon for tenants willing to sign leases. But few companies are finding the need to expand their quarters with the economy tepid and hiring at a standstill.
Business bosses “have gone on a personnel diet,” said Jim Kruse of CBRE Group Inc., the real estate brokerage formerly known as CB Richard Ellis. “They are trying to get through and maintain as much market share as they can without putting a lot of cash into operations.”
Dot-coms want the beach in their address
Posted: October 16th, 2011
ARTICLE, LA TIMES
The commercial real estate rental market is booming in Santa Monica, where the office vacancy rate is a fraction of the L.A. County average. Tech and entertainment firms like the lifestyle.
Compared with most of the region’s white-collar office market, the less corporate environs of Santa Monica and Venice are looking sharp.
Technology and entertainment companies that long ago mastered the knack of making money without dressing up are now paying top dollar to rent space in some of Southern California’s most desirable neighborhoods.
Home foreclosure proceedings on the rise again
Posted: October 13th, 2011
ARTICLE, LA TIMES
After months of a foreclosure slowdown caused by investigations into improper practices, the nation’s home-repossession machinery is beginning to move again — particularly in states such as California where courts don’t oversee the process.
The number of homes entering the foreclosure process surged 19% in the third quarter compared with the previous quarter in states where foreclosures take place largely outside of the courtroom, according to RealtyTrac, an Irvine information firm. These nonjudicial states include California, Nevada, Arizona, Oregon and Washington.
Home ownership: Biggest drop since Great Depression
Posted: October 13th, 2011
ARTICLE, CNN MONEY
The percentage of Americans who owned their homes has seen its biggest decline since the Great Depression, according to the U.S. Census Bureau.
The rate of home ownership fell to 65.1% in April 2010, 1.1 percentage points lower than it was in 2000. The decline was the biggest drop since the 1930s, when home ownership plunged 4.2%.
The most recent decade-over-decade drop, however, only tells half the story.
PVOF: Before & After, 245 N. Alvarado, Los Angeles CA
Posted: October 3rd, 2011
The Repositioning of a 60 unit building near downtown Los Angeles.
Bloomberg names Eric Sussman one of the Nation’s Top 10 Business School Professors
Posted: October 1st, 2011
The most popular business school professors are good teachers, plain and simple. They’re not rock stars, CEOs or celebrity researchers. Their names may not look familiar. But they’ve earned a place in the hearts and minds of their students by bringing to life accounting, finance and management, learning their names and helping them find jobs. Their students come first and it shows.
Home prices climb for fourth straight month
Posted: September 27th, 2011
ARTICLE, CNN/MONEY
Home prices in July climbed for the fourth month in a row, but are still down from a year ago.
According to the latest S&P/Case-Shiller home price index of 120 major cities, prices rose 0.9% in July compared with June, but they’re still 4.1% lower than 12 months ago.
Apartments push O.C. homebuilding up 74%
Posted: September 27th, 2011
ARTICLE, OC REGISTER
Homebuilders have received permits to build 3,901 housing units in Orange County this year so far, up 73.7% from the same period in 2010, Construction Industry Research Board figures show.
In dollar terms, the estimated value of proposed homebuilding this year totaled $694 million through August, a 38.3% jump from 2010 levels for that period.
CoreLogic: Shadow inventory declines to five-month supply
Posted: September 27th, 2011
ARTICLE, HOUSINGWIRE
The nation’s residential shadow inventory as of July declined slightly to 1.6 million units, representing a supply of five months, according to a report from CoreLogic (CLGX: 11.38 -1.73%).
That’s down from 1.9 million units, a supply of six months, from a year ago,
California foreclosures set to surge
Posted: September 26th, 2011
ARTICLE, HOUSINGWIRE
California default notices spiked 55% in August, and the number may keep rising in the coming months as mortgage servicers shake off the robo-signing freeze, according to RealtyTrac Senior Vice President Rick Sharga.
When will Home prices Spring Back?
Posted: September 19th, 2011
ARTICLE, CNN/MONEY
Nationwide, the U.S. housing market remains deep in the doldrums and economists expect prices to fall another 5% to 10% in many places. And yet some sellers, like the Kims, are seeing signs of a turnaround.
Southland home sale report
Posted: September 19th, 2011
PRESS RELEASE, DATAQUICK
Southland August Home Sales Climb, Median Price Falls Again
Demand For Apartments Rises All Over, Despite Economy
Posted: September 16th, 2011
ARTICLE, INVESTORS BUSINESS DAILY
Rising renter demand is filling apartment buildings around the U.S., in defiance of the economic malaise.
Vacancy rates are shrinking all over, in tight markets such as Minneapolis and loose ones like Phoenix.
Mortgage default warnings surged in August
Posted: September 15th, 2011
ARTICLE, ASSOC. PRESS
Report: Mortgage default warnings spiked in August, signaling potential new foreclosure wave
Banks have stepped up their actions against homeowners who have fallen behind on their mortgage payments, setting the stage for a fresh wave of foreclosures.
The number of U.S. homes that received an initial default notice — the first step in the foreclosure process — jumped 33 percent in August from July, foreclosure listing firm RealtyTrac Inc. said Thursday.
The Beginning of the End for Suburban America
Posted: September 15th, 2011
ARTICLE, THE ATLANTIC
For decades, Americans have consumed more energy, built bigger houses, and driven more miles with each passing year. Not anymore.
Coming Next: The Landlord’s Rental Market
Posted: September 12th, 2011
Apartment landlords appear to be among the only commercial property owners able to sign new tenants amid the sluggish economy.
FHA multifamily loan originations at record high
Posted: September 12th, 2011
ARTILCE, REUTERS
The Federal Housing Administration has backed a record $10.5 billion in multifamily rental housing loans during its 2011 fiscal year, the agency said on Tuesday.
The rise in loans for multifamily units reflects an underlying trend in demand for rental property.
College housing has never looked so nice
Posted: September 12th, 2011
ARTICLE, LA TIMES
Housing is moving away from the dorms and cracker-box apartments of old as part of a national trend. At USC, tanning beds, hot tubs, HD televisions and a club room are all on the amenities list. But it doesn’t come cheaply.
SoCal rents up 11th straight month
Posted: September 1st, 2011
How to rescue the housing market: Foreclosures!
Posted: September 1st, 2011
Home prices notch third straight monthly gain
Posted: September 1st, 2011
A key index of home prices in 20 metropolitan areas rose 1.1% from May to June. Real estate experts say the improvement is seasonal and that prices could fall again as sales slow in the fall and winter.
Shadow inventory improves but still threatens housing recovery
Posted: August 24th, 2011
ARTICLE, CNN/MONEY
“It’s good news that things are starting to slow down and we’re getting closer to the end of the problem,” said Diane Westerback, Managing Director of Global Surveillance Analytics for S&P. “It could mean a gradual recovery for the market.”
Number of troubled mortgages on rise again
Posted: August 24th, 2011
ARTICLE, CNN/MONEY
In another hit to the beleaguered housing market, a report out Monday found that the number of delinquent mortgage borrowers — those who have missed at least one payment — rose during the second quarter.
The delinquency rate grew only slightly, up 0.12 percentage points to 8.44%, but that reverses the steady improvement of the past two years.
The increase, as reported by the Mortgage Bankers Association (MBA), may not sound like much, but it could mean that the recovery in the housing market will take even longer than thought.
Investing in Undervalued Housing Markets
Posted: August 22nd, 2011
CNBC, VIDEO
Linkage in Income, Home Prices Shifts
Posted: August 22nd, 2011
ARTICLE, WALL ST. JOURNAL
Home prices in some of the nation’s hardest-hit metro areas have fallen far below pre-bubble levels, stirring concerns that properties in those markets are undervalued.
In a recent analysis, real-estate firm Zillow Inc. studied the correlation between home prices and annual incomes over the 15-year period that ended in 2000, before home prices began to surge.
Foreclosure reforms may be coming to a head
Posted: August 18th, 2011
ARTICLE, LA TIMES
Getting banks, investors and borrowers together to work out a solution that benefits them all is the most promising idea to emerge since the housing market first crashed.
Buying real estate a better deal than renting in 74% of major US cities
Posted: August 18th, 2011
ARTICLE, INMAN NEWS
Buying real estate continues to be cheaper than renting in the vast majority of major U.S. cities, according to a quarterly rent vs. buy index from real estate search and marketing site Trulia.
The index compared the median list price and the median annualized rent on a two-bedroom apartment, condominium or townhouse in the country’s 50 most populous cities. According to the index, the cost of buying was less than renting in 37 of the 50 cities (74 percent) as of July 1, 2011. About the same share, 78 percent, favored buying over renting in Trulia’s last index report, released in April.
Foreclosures fall for 10th straight month
Posted: August 18th, 2011
ARTICLE, CNN
Foreclosure filings dropped once again in July, hitting their lowest level since November 2007, as processing delays and foreclosure prevention measures enabled a larger number of delinquent borrowers to remain in their homes.
Filings were down 4% compared to June and were 35% lower than July 2010, marking the tenth straight month of year-over-year declines, according to RealtyTrac, a leading online marketer of foreclosed properties.
Mortgage Rates Keep Falling
Posted: August 18th, 2011
ARTICLE, CNN
Just when it seemed mortgage rates weren’t going to get any lower, they started testing new lows.
In the tumultuous days following Standard & Poor’s debt downgrades, rates on 30-year fixed mortgages fell to 4.32%, down from 4.39% last week and closed in on a record low of 4.17% set last November, according to Freddie Mac’s Primary Mortgage Market Survey.
Rates on 15-year fixed mortgages set a new record for the second week in a row, falling to 3.5%, down from 3.54% last week.
Southland Housing Market’s Vital Signs Remain Weak
Posted: August 18th, 2011
PRESS RELEASE, MDA DATAQUICK
Southern California home sales fell last month to the lowest level for a July in four years, though the decline from a year earlier was the smallest in 13 months. The drop in sales from June was more pronounced, especially for $500,000-plus homes, as the job market sputtered, economic uncertainty intensified and some potential homebuyers got cold feet, a real estate information service reported.
Time to foreclose on Orange County home: 373 days
Posted: August 18th, 2011
ARTICLE, OC REGISTER
It took just a little more than a year — an average of 373 days – for banks to foreclose on Orange County homes as of July, a report by ForeclosureRadar.com shows. That’s up 32% from July 2010.
.
Highlights of the report for Orange County:
Notices of default — the start of the foreclosure process – were down 20% from last July and 7% from June.
Notices of trustee sale, or foreclosure auctions, declined 19% from last July but went up 2% from June.
The number of banked owned homes increased by 16% from last July and 1% from June. As of July, there were 7,259 homes in Orange County owned by lenders.
The 373 days to foreclose compares to 283 days in July 2010 and 344 days in June. The high for 2011 year so far was 398 days in May.
California July Home Sales
Posted: August 18th, 2011
PRESS RELEASE, DATAQUICK
An estimated 34,695 new and resale houses and condos were sold statewide last month. That was down 11.0 percent from 38,975 in June, and down 1.4 percent from 35,202 for July 2010. A decline from June to July is normal for the season. California sales for the month of July have varied from a low of 30,596 in 1995 to a high of 71,186 in 2004, while the average is 46,577. DataQuick’s statistics go back to 1988.
Foreclosures Fall in Most Cities
Posted: July 28th, 2011
ARTICLE, CNN MONEY
Home prices rise again, but experts are unimpressed
Posted: July 28th, 2011
ARTICLE, LA TIMES
Sequoia Real Estate Partners, Q3 2011 Investor Market Summary and Forecast
Posted: July 13th, 2011
OPINION, SREP
It is not surprising, therefore, that the fundamentals surrounding multi-family residential properties continue to improve, with continued increases in occupancy rates in nearly all markets. While rental growth has been modest, reflecting the high levels of unemployment and stagnant levels of household income, we believe that rents will eventually need to increase along with the drop in vacancy rates and, perhaps more critically, the significant lack of new supply coming on line.
Southland Home Sales Quicken, Median Price Highest This Year
Posted: July 13th, 2011
PRESS RELEASE, MDA DATAQUICK
Southern California home sales last month shot up more than usual from May to the highest level for any month since June 2010, when the market got its last big boost from homebuyer tax credits. Sales of lower-cost homes, driven by investors and first-time buyers, and even high-end sales continued to outshine traditional move-up activity in middle price ranges, a real estate information service reported.
Home prices rise, snapping 8-month drop streak
Posted: July 13th, 2011
ARTICLE, CNN
The downward cycle in home prices broke in April after eight consecutive months of decline, according to a survey released Tuesday.
According to the S&P/Case Shiller 20-city index, prices rose 0.7% compared with March, although they fell 0.1% when adjusted for the strong spring selling season. Prices were down 4% year-over-year.
Investors to the rescue of housing market
Posted: July 13th, 2011
ARTICLE, LA TIMES
Real estate investors will outnumber traditional borrowers 3 to 1 during the next two years, a new survey says, helping clear millions of repossessed properties from banks’ books and pave the way for a recovery.
2011 seen as ‘turning point’ for home prices
Posted: July 13th, 2011
ARTICLE, INMAN NEWS
More than half of economists, real estate experts and investment strategists polled by MacroMarkets LLC in June said they now expect national home prices to hit a bottom sometime in 2011 and remain stable through 2015.
National rental prices climb in June
Posted: July 13th, 2011
ARTICLE, INMAN NEWS
Rental listing prices nationwide rose 6.7 percent year-over-year in June, according to a report from real estate search site HotPads.
The report was based on the median listing prices of 500,000 rentals on HotPads.com across major U.S. metro areas between June 2010 and June 2011.
San Francisco’s rent riot
Posted: July 13th, 2011
ARTICLE, FORTUNE
Whether we’re living through another tech bubble remains hotly contested, but there’s no denying its impact on one market: rental apartments in San Francisco. With Twitter, Zynga, and numerous other local startups hiring in droves, all those newbies need somewhere to live.
More consumers forced to rent due to foreclosure: TransUnion
Posted: June 26th, 2011
ARTICLE, HOUSINGWIRE
According to the survey, 47% of all property managers reported an increase in rental applicants moving into apartments from foreclosed properties. Sequentially, more than two-third of managers said it is not difficult to find residents in today’s economy even with increases in rent.
Forecast: Homebuilders to focus on Calif. cities
Posted: June 26th, 2011
ARTICLE, BLOOMBERG
“What we’ve seen is this shift toward multifamily housing demand,” said the forecast’s author, Jerry Nickelsburg. “You can see that in the demographics.”
Since apartment units require far fewer workers than single-family homes, the post-recovery homebuilding sector will employ fewer people than before the downturn, Nickelsburg said.
‘Shadow Inventory’ Shrinks in U.S. as More Foreclosed Homes Sell
Posted: June 26th, 2011
ARTICLE, BLOOMBERG
“It’s showing there are improvements in some segments of the market,” he said in a telephone interview from McLean, Virginia. “It doesn’t mean housing distress is over, but it does show that the pipeline of distress is beginning to ease.”
May Southern California Home Sales Report
Posted: June 26th, 2011
ARTICLE, MDA DATAQUICK
Southern California home sales held at a three-year low last month amid a sluggish move-up market and record-low sales of newly built homes. The median sale price fell year-over-year by the largest amount in 20 months as buyer uncertainty, tight credit and lackluster hiring continued to restrain housing demand, Dataquick reported.
California May Home Sales Report
Posted: June 26th, 2011
ARTICLE, MDA DATAQUICK
An estimated 35,536 new and resale houses and condos were sold statewide last month. That was up 0.9 percent from 35,202 sales in April, and down 13.3 percent from 40,965 sales in May 2010. California sales for the month of May have varied from a low of 32,223 in 1995 to a high of 67,958 in 2004, while the average is 46,840.
WSJ: Why It’s Time to Buy
Posted: June 8th, 2011
ARTICLE, WALL ST JOURNAL
The short-term outlook isn’t encouraging. Job growth remains weak, foreclosure sales are making up more of the market, and economists are predicting that home prices will fall more in the coming months.But the long-term benefits of home ownership remain very much intact.
Orange County renting’s edge vs. buying near historic low
Posted: June 8th, 2011
ARTICLE, OC REGISTER
When comparing local rents (using RealFacts statistics for large apartment complexes) and estimates of mortgage payments for Orange County homebuyers (from DataQuick) we find that rents ran at 39% less than house payments in the first quarter.
San Pedro apartment tower sells for $80.1 million, almost $100 million less than cost.
Posted: June 8th, 2011
The Vue, at 5th and Palos Verdes streets, was completed at a cost of $175 million in 2008 before the real estate crisis. The building was acquired by San Francisco investors after the developers lost it to foreclosure.
ARTICLE, LA TIMES
How to Interpret Today’s S&P Case Shiller Home Price Report | Altos Research: Hows the Market?
Posted: June 3rd, 2011
–From our friends at Altos Research
It’s nice to be able to be contrarian AND bullish for once. The real-time data is up. Demand is responding to the low interest rates and years of falling prices. There are deals to be had. And, ironically, despite all the shadow inventory that might come on the market, if you’re buying a home right now, in most places you’ll notice that there aren’t all that many actually on the market for you to choose from! These are bullish, short-term factors for housing. They’re the reason home prices have rebounded since March.
ARTICLE/OPINION, ALTOS RESEARCH
Home prices: ‘Double-dip’ confirmed
Posted: June 2nd, 2011
ARTICLE, CNN
Home prices hit another new low in the first quarter, down 5.1% from a year ago to levels not reached since 2002.
It was the third straight quarterly drop for the S&P/Case-Shiller national home price index, which was released Tuesday.
Prices are now down 32.7% from their peak set five years ago.
“Home prices continue on their downward spiral with no relief in sight,” said David Blitzer, spokesman for Standard and Poor’s.
The index covers 80% of the housing market, and this month’s report confirmed “a double-dip in home prices across much of the nation,” said Blitzer.
The housing market went through a brief recovery period starting in mid-2009, recovering nearly 5% of earlier losses. After homebuyer tax credits expired last April, the slump resumed.
A separate S&P/Case-Shiller index covering 20 major cities also dropped during March, the index’s eighth straight monthly decline
Freddie Mac sells record number of REO in 1Q
Posted: May 10th, 2011
ARTICLE, HOUSINGWIRE
Freddie Mac sold roughly 31,000 previously foreclosed and repossessed homes in the first quarter, a new record for the company as both government-sponsored enterprises shed inventory from the end of last year.
Apartment Building Foreclosures Piling Up
Posted: May 10th, 2011
ARTICLE, WALL ST JOURNAL
For more than three years, Fannie Mae has faced surging foreclosures on deteriorating home loans. Now, it also has to deal with an uptick in souring loans backing apartment buildings made as the market peaked four years ago.
California Mortgage Defaults Drop Again; Foreclosures up
Posted: April 26th, 2011
ARTICLE, MDA DATAQUICK
The number of financially distressed California homeowners who were dragged into the formal foreclosure process declined again last quarter, the result of turmoil and policy changes within the mortgage industry as well as shifts in the economy, a real estate information service reported.
Home price index hits recession-era bottom in February
Posted: April 26th, 2011
ARTICLE, LA TIMES
The Standard & Poor’s/Case-Shiller index for 20 major U.S. cities, released Tuesday, showed prices dropped 3.3% from February 2010 and 1.1% from January amid weak demand for abodes and as foreclosures and other so-called distressed properties made up a large part of the market.
Housing construction ‘encouraging’
Posted: April 22nd, 2011
ARTICLE, CNN/MONEY
In an encouraging sign for the housing market, new home construction increased more than expected in March, according to a government report Tuesday.
Americans Shun Cheapest Homes in 40 Years as Ownership Fades
Posted: April 22nd, 2011
ARTICLE, BLOOMBERG
The most affordable real estate in a generation is failing to lure buyers as Americans like Pauli sour on the idea of home ownership. At the end of 2010, the fourth year of the housing collapse, the share of people who said a home was a safe investment dropped to 64 percent from 70 percent in the first quarter. The December figure was the lowest in a survey that goes back to 2003, when it was 83 percent.
Blackstone Leads Buyout Firms Expanding Into Property
Posted: April 22nd, 2011
ARTICLE, BLOOMBERG
Blackstone Group LP and Carlyle Group are leading a record number of private-equity managers aiming to raise real estate funds as the world’s top buyout firms accelerate an expansion beyond corporate takeovers.
Blackstone, the biggest private-equity firm, is planning to raise its next real estate fund, with a target of about $10 billion, later this year. Carlyle is in the process of raising a new fund for U.S. property deals, said a person briefed on the plan who asked not to be named because the fund is private.
The two are among 439 private-equity real estate funds seeking a combined $160 billion, the largest number on record, according to London-based researcher Preqin Ltd. KKR & Co.
U.S. Housing Prices Fell Again in January
Posted: March 29th, 2011
ARTICLE, NY TIMES
Housing prices slid in January for the sixth month in a row, putting them barely above the lows reached in the depths of the recession, according to data released Tuesday.
Fortune: It’s time to buy again
Posted: March 29th, 2011
ARTICLE, FORTUNE
…Eventually reality set in, and prices plummeted. Our current view focuses on those same fundamentals — only now they’re pointing in the opposite direction.
So let’s state it simply and forcibly: Housing is back.
Renew your lease – rents could rise 10%
Posted: March 20th, 2011
ARTICLE, CNN/MONEY
Renters beware: Double-digit rent hikes may be coming soon.
Already, rental vacancy rates have dipped below the 10% mark, where they had been lodged for most of the past three years.
“The demand for rental housing has already started to increase,” said Peggy Alford, president of Rent.com.
30% of mortgages are underwater
Posted: March 17th, 2011
ARTICLE, CNN/MONEY
Home prices dropped 2.6% nationwide during the last three months of 2010, pushing more borrowers underwater, according to a quarterly real estate market survey from Zillow.com.
Now 27% of homeowners with mortgages owe more than their homes are worth. That’s up from 23.2% a quarter earlier.
That will surely lead to higher foreclosure rates soon.
Home prices: The double-dip is near?
Posted: March 17th, 2011
ARTICLE, CNN/MONEY
On Tuesday, we found out that home prices were near their post-bust lows. Two days later the government reported that January saw a double-digit dip in the number of new homes sold.
Record Portion of California Homes Bought With Cash
Posted: March 17th, 2011
ARTICLE, MDA DATAQUICK
The share of Golden State homes purchased with cash rose to a record level last month as investors and others took advantage of lower prices and less competition during the market’s winter doldrums, a real estate information services reported.
Southland February Home Sales At 3-year Low; Investor Interest High
Posted: March 17th, 2011
ARTICLE, MDA DATAQUICK
Southern California’s housing market remained sluggish in February despite relatively strong demand from investors and others paying cash for homes. Prices appeared fairly flat as many potential home buyers stayed on the sidelines and waited – whether for a sign values have bottomed, job security has improved or credit has loosened, a real estate information service reported.
Phoenix Region December Home Sales
Posted: February 11th, 2011
ARTICLE, MDA DATAQUICK
Phoenix-area December home sales rose more than usual from November and posted only a slight year-over-year sales decline as the market saw gains in investor activity, foreclosure resales and sub-$100,000 transactions. The median sale price fell on a year-over-year basis for the sixth consecutive month, to the lowest level in just over 12 years, a real estate information service reported.
Cash Buyers Lift Housing
Posted: February 11th, 2011
ARTICLE, WALL ST JOURNAL
Cash buyers represented more than half of all transactions in the Miami-Fort Lauderdale area last year, according to an analysis from real-estate portal Zillow.com. In the fourth quarter of 2006, they represented just 13% of deals. Meanwhile, downtown Miami prices rose 15% in 2010 from a year earlier, according to the Miami Downtown Development Authority. WSJ’s Mitra Kalita reports more and more homebuyers are selling investments to pay cash for real estate, sensing a bottom in the housing market.
California December Home Sales Report
Posted: January 31st, 2011
ARTICLE, MDA DATAQUICK
An estimated 36,215 new and resale houses and condos were sold statewide last month. That was up 15.3 percent from 31,403 in November, and down 13.4 percent from 41,837 for December 2009. California sales for the month of December have varied from a low of 25,585 in 2007 to a high of 66,503 in 2003, while the average is 44,338. DataQuick’s statistics go back to 1988.
The median price paid for a home last month was $254,000, down 0.4 percent from $255,000 in November, and down 3.8 percent from $264,000 for December a year ago. The year-over-year decrease was the third in a row after eleven months of increases. The bottom of the current cycle was $221,000 in April 2009, while the peak was at $484,000 in early 2007.
Home values are falling at an accelerating rate in many cities across the U.S.
Posted: January 31st, 2011
ARTICLE, WALL ST JOURNAL
The Wall Street Journal’s latest quarterly survey of housing-market conditions found that prices declined in all of the 28 major metropolitan areas tracked during the fourth quarter when compared to a year earlier.
The size of the year-to-year price declines was greater than the previous quarter’s in all but three of the markets, the latest indication that the housing market faces considerable challenges.
Inventory levels, meanwhile, are rising in many markets as the number of unsold homes piles up.
Foreclosure Filings in U.S. May Jump 20% From Record 2010 as Crisis Peaks
Posted: January 18th, 2011
ARTICLE, BLOOMBERG
The number of U.S. homes receiving a foreclosure filing will climb about 20 percent in 2011, reaching a peak for the housing crisis, as unemployment remains high and banks resume seizures after a slowdown, RealtyTrac Inc. said.
No McMansions for Millennials
Posted: January 18th, 2011
ARTICLE, WALL ST. JOURNAL
Gen Y housing preferences are the subject of at least two panels at this week’s convention. A key finding: They want to walk everywhere. Surveys show that 13% carpool to work, while 7% walk, said Melina Duggal, a principal with Orlando-based real estate adviser RCLCO. A whopping 88% want to be in an urban setting, but since cities themselves can be so expensive, places with shopping, dining and transit such as Bethesda and Arlington in the Washington suburbs will do just fine.
KB Home unexpectedly reports profit, has eye on California
Posted: January 14th, 2011
ARTICLE, LA TIMES
Despite a challenging period for the nation’s home builders, Los Angeles-based KB Home unexpectedly reported a profit for its fiscal fourth quarter and predicted that California would be a key part of its strategy in 2011.
Housing prices to hit bottom this spring: Freddie Mac
Posted: January 14th, 2011
ARTICLE, REUTERS
U.S. housing prices overall are expected to hit bottom by spring 2011 and begin a gradual rise in 2012, Frank Nothaft, chief economist and vice president of housing lender Freddie Mac said on Wednesday.
For Apartments, a Hot Winter
Posted: January 14th, 2011
ARTICLE, WALL ST JOURNAL
The nation’s apartment market remained robust in the fourth quarter with vacancies falling below 7% for the first time in two years, according to new data.
Fresh Fall in Home Prices Is Headwind for Economy; Other Signs Still Strong
Posted: December 31st, 2010
ARTICLE, WALL ST JOURNAL, 12.28.2010
Home prices across 20 major metropolitan areas fell 1.3% in October from September, the third straight month-over-month drop, according to the S&P/Case-Shiller home-price index released Tuesday. Many economists expect the declines to continue into at least next spring, erasing most of the gains made since prices bottomed out in early 2009.
U.S. Housing Market Double-Dip Unlikely Next Year, Wharton’s Wachter Says
Posted: December 31st, 2010
ARTICLE, BLOOMBERG, 12.31.2010
The U.S. housing market probably will avoid a “double-dip” next year as a recovery depends on job growth, said Susan Wachter, a real estate professor at the University of Pennsylvania’s Wharton School.
“Nationally, we’ll see a bumpy ride instead of a double- dip,” Wachter said in an interview from Philadelphia today on Bloomberg Television. “Jobs are key.”
SoCal Rents Biggest Rise in 15 months
Posted: December 16th, 2010
Rents in Southern California — at least, as measured by the local version of the Consumer Price Index — were rising in November at a 0.9% annual rate, according to the Bureau of Labor Statistics. That rise compares to an increase at a 0.5% annual rate in the previous month. It was the third consecutive month of year-over-year increases and the biggest jump since August 2009.
Donald Bren’s spending spree
Posted: December 15th, 2010
Irvine Co. billionaire boss Donald Bren has been making some big real estate gambits in recent weeks, a billion-buck-plus bet on an economic recovery ahead …
“It strikes me as a prudent move from a fearless leader. The recovery is underway. Conditions in Orange County indicate that economic growth is accelerating. Mr Bren is clearly convinced that investment at this stage of the recovery will be necessary to capture the rise in demand that is coming. We also believe there is an inevitable expansion of economic activity that will occur in Orange County by the end of 2011 and throughout 2012. …”
Southland Home Sales Dip; Prices Change Little
Posted: December 15th, 2010
La Jolla, CA—Southern California home sales fell in November to the second-lowest level for that month in 18 years, reflecting the weak economic recovery, a dormant new-home market and tight credit conditions. The median price paid for a home rose above a year earlier for the 12th consecutive month, though November’s gain was the tiniest yet, a real estate information service reported.
Luxury home prices are still heading down
Posted: December 14th, 2010
While Southland housing values overall have rebounded from recent lows, those in the upper end of the market may not yet have hit bottom. Some experts don’t see a turnaround for at least another year.
Bank of America ramps up foreclosure restarts
Posted: December 13th, 2010
ARTICLE, HOUSING WIRE, 12.13.2010
Bank of America (BAC [1]: 12.79 -0.08%) cleared attorneys to proceed with 16,000 foreclosure cases in December as it completes a revamp of its procedures.
Top 10 States People Are Fleeing
Posted: December 11th, 2010
ARTICLE, FORBES, 12.08.2010
The slowdown makes the question of who’s moving and why even more significant than in years past. Using 2010 projections by Moody’s Economy.com, Forbes ranked the states in which people are leaving faster than they are arriving. Economists report several overlapping trends that may be forcing people out of certain states as much as they are pulling them toward others.
Welcome to Zombieland: Ladera Oaks California
Posted: December 7th, 2010
ARTICLE, CNN/MONEY, 12.06.2010
Welcome to Zombieland: Ladera Oaks California
Los Angeles apartment renters returning to market
Posted: December 1st, 2010
ARTICLE, LA TIMES, 11.30.2010
Many Los Angeles County renters who doubled up during the recession are regaining the confidence to get their own apartments, a real estate brokerage said Tuesday.
The “de-bundling” of households prompted leasing of empty units in the third quarter, fueling one of the strongest periods of apartment absorption on record in the county, real estate investment company Marcus & Millichap said in an apartment industry report.
Sequoia Investment Partners, December 2010 Investor Market Summary and Forecast
Posted: December 1st, 2010
OPINION, SREP, 12.01.2010
First and foremost, I would like to extend best holiday wishes to Sequoia’s friends, investors, and partners. We would like to wish all of you a healthy and fortuitous holiday season.
While we anticipate that 2011 will witness a continuation and expansion of the economic recovery, we continue to believe that lethargy is likely to define the domestic and global economic scene.
A Dim View of Betting on Venture Capital
Posted: November 23rd, 2010
ARTICLE, NY TIMES, 11.23.2010
“There’s too much money chasing too few deals.”
Sean Parker, the entrepreneur behind Napster and Facebook now turned investor, was talking about the state of the venture capital industry last week over coffee. At 30, Mr. Parker, who was recently portrayed by Justin Timberlake in “The Social Network,” has been thinking a lot about innovation — or the lack of it — in the United States.
Percent of Americans likely to rent their next home grows, survey indicates
Posted: November 23rd, 2010
ARTICLE, LA TIMES, 11.22.2010
The percentage of Americans who said their next home would probably be a rental has grown to 33% from 30% since a similar survey came out in April. And 60% of those who rent said they’d continue to do that rather than buy a house if they were to move, up 6 points from April.
‘Shadow’ supply of 2.1 million homes potentially looms
Posted: November 23rd, 2010
ARTICLE, LA TIMES, 11.22.2010
This “shadow inventory” of residential real estate — in which the property is either in foreclosure, has a loan 90 days past due or has been taken back by a lender and is not listed for sale — stood at an eight-month supply at the end of August, according to the Santa Ana mortgage research firm CoreLogic, which released the data. That was an increase from 1.9 million, a five-month supply, a year earlier.
Southland Home Sales Fall, Prices Flat
Posted: November 19th, 2010
ARTICLE, MDA DATAQUICK, 11.18.2010
La Jolla, CA—Southern California home sales dropped in October to their lowest level in three years amid doubts about the drawn-out market recovery, tight mortgage lending policies and expired government incentives. The median price paid for a home rose on a year-over-year basis for the 11th consecutive month, but at this year’s slowest pace, a real estate information service reported.
Delinquency Rate on U.S. Mortgages Declines
Posted: November 18th, 2010
ARTICLE, NY TIMES, 11.18.2010
The mortgage delinquency rate in the United States declined last quarter amid hints of improvement in the job market, but headwinds from defaults and a rising rate of new foreclosure applications keep the housing outlook muddied, the Mortgage Bankers Association said on Thursday.
Foreclosure activity up across most US metro areas
Posted: October 29th, 2010
ARTICLE, LA TIMES, 10.28.2010
The foreclosure crisis intensified across a majority of large U.S. metropolitan areas this summer, with Chicago and Seattle — cities outside of the states that have shouldered the worst of the housing downturn — seeing a sharp increase in foreclosure warnings.
Commercial Real Estate Turn Around
Posted: October 28th, 2010
VIDEO, CNBC, 10.26.2010
The bigger opportunity right now in the marketplace is for private investors who are not so concerned about the different sectors but are interested in infill locations that are close to jobs.
O.C. home prices to surge 49%, UCLA economists say
Posted: October 28th, 2010
ARTICLE, OC REGISTER, 10.27.2010
Economists with UCLA’s Anderson Forecast foresee O.C. home prices climbing above $500,000 in 2012 for the first time since April 2008. Prices are expected to appreciate from 6.6% to 9.3% a year through 2015 — and, all told, grow 49% in the next six years.
U.S. companies hoarding almost $1 trillion cash: Moody’s
Posted: October 28th, 2010
ARTICLE, REUTERS, 10.26.2010
U.S. companies are hoarding almost $1 trillion in cash but are unlikely to spend on expanding their business and hiring new employees due to continuing uncertainty about the strength of the economy, Moody’s Investors Service said on Tuesday.
In Bond Frenzy, Investors Bet on Inflation
Posted: October 28th, 2010
ARTICLE, NY TIMES, 10.25.2010
The investors who took part in the $10 billion auction are betting that inflation, now at about 1 percent annually, will rise to a level that more than compensates for the premium they paid.
Key home price indicator edges down in August
Posted: October 28th, 2010
ARTICLE, LA TIMES, 10.27.2010
The S&P/Case Shiller index of prices in 20 major cities falls 0.3%, reflecting weakness in the housing market after the expiration of federal tax credits for certain buyers.
Index Shows That U.S. Home Prices Weakened in August
Posted: October 28th, 2010
ARTICLE, ASSOC. PRESS, 10.26.2010
The Standard & Poor’s Case-Shiller 20-city home price index fell 0.2 percent in August from July. Fifteen of the cities showed monthly price declines. Prices are expected to drop further in the coming months.
New home sales rise 6.6 pct. after dismal summer
Posted: October 28th, 2010
ARTICLE, ASSOC. PRESS, 10.27.2010
Sales of new homes improved last month after the worst summer in nearly five decades, but not enough to lift the struggling economy.
The Commerce Department says new home sales in September grew 6.6 percent from a month earlier to a seasonally adjusted annual sales pace of 307,000.
Fed boss: Regulators looking into foreclosure mess
Posted: October 25th, 2010
ARTICLE, ASSOC.PRESS, 10.24.2010
Preliminary results of the in-depth review into the practices of the nation’s largest mortgage companies are expected to be released next month, Bernanke said in remarks to a housing-finance conference in Arlington, Va.
“We are looking intensively at the firms’ policies, procedures and internal controls related to foreclosures and seeking to determine whether systematic weaknesses are leading to improper foreclosures,” Bernanke said. “We take violation of proper procedures very seriously,” he added.
Short Sales Resisted as Foreclosures Are Revived
Posted: October 25th, 2010
ARTICLE, NY TIMES, 10.24.2010
Bank of America and GMAC are firing up their formidable foreclosure machines again today, after a brief pause………..But some major lenders took a quick inventory of their foreclosure practices and insisted their processes were sound. They now seem intent on resuming foreclosures. And that could have a profound effect on many homeowners.
Testimony won’t stop foreclosures at Wells Fargo
Posted: October 15th, 2010
ARTICLE, ASSOC. PRESS, 10.15.2010
Wells has not halted foreclosures and says it has discovered no problems in the legal documents used to process them. The company said earlier in the week that it would review pending foreclosures for potential defects.
“Our records show that Wells Fargo’s foreclosure affidavits are accurate,” said company spokeswoman Vickee Adams. When the company finds employees that don’t follow procedure, it takes “corrective action.” She declined to comment on whether the Fort Mill, S.C.-based employee, Xee Moua, still works for Wells.
Banks seize 288K homes in Q3, but challenges await
Posted: October 14th, 2010
ARTICLE, ASSOC. PRESS, 10.14.2005
Rick Sharga, a senior vice president at RealtyTrac, noted that legal challenges are likely. But he doubts many will be successful in overturning foreclosures. He said he expects foreclosures to resume and predicts about 1 million homes will be taken back this year.
Why Did the Three Banks Temporarily Halt Foreclosures in Only 23 States? Judicial vs. Non-Judicial Foreclosure States
Posted: October 7th, 2010
INSIGHT, SREP, 10.07.2010
Each state in the U.S. handles it’s real estate foreclosures differently, it’s important to understand those differences and know your specific state’s procedures. The terms used and time frames vary greatly from state to state, but the following information provides a general overview of the different processes and considerations.
Foreclosures Halted In 23 States: Plantiffs’ Lawyers Rejoice (California, Nevada and Arizona not affected)
Posted: October 7th, 2010
ARTICLE, CBS NEWS, 10.05.2010
GMAC Mortgage, JP Morgan Chase and Bank of America have suspended foreclosures in 23 states to evaluate if there were errors due to “robo-signing“. “Robo-signers” are bank middle managers who sign the paperwork that allowed banks to repossess homes that are in default, without properly reviewing the underlying documents they were signing.
Home Prices in U.S. Cooled in July After Tax Credit Expired
Posted: September 28th, 2010
ARTICLE, BLOOMBERG, 09.28.2010
The S&P/Case-Shiller index of property values increased 3.2 percent from July 2009, the smallest year-over-year gain since March, the group said today in New York. The gauge is a three- month average, which means the July data are still being influenced by transactions in May and June that may have benefitted from the government homebuyer incentive.
Bay Area Home Sales Drop to 1992 Level; Median Price Slips Again
Posted: September 24th, 2010
ARTICLE, MDA DATAQUICK, 09.16.2010
Bay Area home sales fell less sharply last month than in July but still dropped to an 18-year low as potential buyers fretted about job security or took their time to assess the changing market. The median sale price remained higher than a year earlier but dipped month-to-month again, a real estate information service reported.
Multifamily Sales Defy the Slump
Posted: September 22nd, 2010
ARTICLE, WSJ, 09.22.2010
Home buyers might be sitting on the sidelines, but multifamily-building sales are on the rise, reversing the slowdown that followed the financial market’s collapse two years ago.
The vacancy rate, which peaked at 7.4% at the end of last year, is expected to drop to 5.5% by the end of 2011, according to CBRE Econometric Advisors.
U.S. Housing Starts in August Topped Forecasts
Posted: September 21st, 2010
ARTICLE, NY TIMES, 09.21.2010
Housing starts in the United States increased more than expected in August to their highest level in four months and permits for residential construction also rose, government data showed on Tuesday, suggesting that the embattled market was starting to stabilize following the end of a tax credit.
US home repossessions spike in August to highest level since start of mortgage crisis
Posted: September 16th, 2010
ARTICLE, ASSOC. PRESS, 09.16.2010
Banks have been stepping up repossessions to clear out their backlog of bad loans with an eye on eventually placing the foreclosed properties on the market, but they can’t afford to simply dump the properties on the market.
Where to Buy a Home for Less Than $800 a Month
Posted: September 15th, 2010
ARTICLE, U.S. NEWS & WORLD REPORT, 09.15.2010
Lower property values and dirt-cheap mortgage rates have combined to restore affordability to many real estate markets that were once wildly overpriced. “Right now, housing is about as affordable as it has been since at least the 1970s,” says Patrick Newport, a U.S. economist for IHS Global Insight.
Southern California Home Sales Fall in August; Median Price Dips
Posted: September 15th, 2010
ARTICLE, DATAQUICK, 10.15.2010
Southland home sales fell last month to the lowest level for an August in three years and the second-lowest in 18, the result of a worrisome job market and a lost sense of urgency among home shoppers. The median price paid remained higher than a year ago but continued to erode on a month-to-month basis
How Wall Street Reform Benefits Foreclosure Buyers
Posted: September 13th, 2010
ARTICLE, REALTYTRAC, 09.13.2010
In many markets there’s a fusion of discounted acquisition costs, historically-low interest levels, falling vacancy rates and rising rental rates. This doesn’t mean specific real estate investments are attractive everywhere or for all buyers, but in areas where such trends exist and seem likely to continue this may well be an unusually good time to consider short sales and foreclosures, two ways to acquire discounted real estate.
Prado Group joint venture acquires San Francisco apartment portfolio
Posted: September 8th, 2010
ARTICLE, REO INSIDER, 09.08.20120
The 250-unit apartment portfolio was purchased for $30.3 million, according to a news release from the San Francisco-based Prado Group, a real estate development and investment management firm.
Home prices rise in June, but a drop may be looming
Posted: September 3rd, 2010
ARTICLE, LA TIMES, 09.03.2010
The Standard & Poor’s/Case-Shiller index shows a modest 1% gain over May figures, with prices in Los Angeles, San Diego and San Francisco increasing. However, some experts predict that the expiration of federal tax credits will have a negative effect.
FDIC sells another $760 million in REO
Posted: September 3rd, 2010
ARTICLE, REO INSIDER, 09.03.2010
Mariner Real Estate Management (MREM), a real estate investment and management firm based in Kansas, closed a deal to acquire a $760 million portfolio of residential and commercial loans and REO properties from the Federal Deposit Insurance Corp. (FDIC).
U.S. Home Sales at Lowest Level in More Than a Decade
Posted: August 25th, 2010
ARTICLE, 08.24.2010
The National Association of Realtors said Tuesday that the seasonally adjusted annual sales rate of 3.83 million was 25.5 percent below the level of July a year ago.
“Prices will have to drop again in most markets before buyers come back in force,” Mr. Kelman said, “and so sales volume will probably be in the tank at least until next spring.”
Private venture to buy $1.7bn portfolio of REO properties and nonperforming loans
Posted: August 18th, 2010
ARTICLE, REO INSIDER, 08.18.2010
PMO Loan Acquisition Venture, a partnership among several firms, will purchase a $1.7bn portfolio of nonperforming loans and REO properties previously owned by AmTrust Bank before it failed in December 2009.
Southern California Home Sales and Median Price Dip in July
Posted: August 18th, 2010
ARTICLE, MDA DATAQUICK, 08.18.2010
Southland home sales saw their biggest year-over-year drop in more than two years last month as the market lost most of the boost from the federal home buyer tax credits. The median sale price dipped for the second month in a row, the result of a shaky economic recovery, continued uncertainty about jobs, and the expiring tax breaks, a real estate information service reported.
Homebuilder confidence sinks for 3rd month
Posted: August 16th, 2010
ARTICLE, ASSOCIATED PRESS, 08.16.2010
Homebuilder confidence dropped for the third straight month in August as the struggling economy and a flood of cheap foreclosed properties kept people from buying new homes.
REO levels in July reach second highest point ever: RealtyTrac
Posted: August 13th, 2010
ARTICLE, REO INSIDER, 08.13.2010
In July, 92,858 properties went back to the banks as REO, the second highest monthly total since RealtyTrac, an online foreclosure marketplace, began tracking them in April 2005.
Short sales soar in California, U.S.
Posted: August 13th, 2010
ARTICLE, LA TIMES, 08.13.2010
Sales of homes for less than the amount of their outstanding mortgage debt have tripled since 2008, particularly in California and the Sunbelt, according to a report released Tuesday.
Known as short sales, the increasingly common transactions for financially troubled homeowners are projected to balloon to 400,000 in 2010, according to Core Logic, a Santa Ana company that provides services to the real estate and mortgage markets. By comparison, existing homes sold at a seasonally adjusted annual rate of 5.37 million units in June, according to the National Assn. of Realtors.
Santa Clara County house prices climb 12% from 2009: SCCAOR
Posted: August 13th, 2010
ARTICLE, REO INSIDER, 08.13.2010
The average sales price for a home in Santa Clara County in California reached $710,475 in July, a 12% increase from the same month a year ago, according to the Santa Clara County Association of Realtors (SCCAOR).
Santa Clara County is located “in the heart of Silicon Valley,” and includes the cities of Santa Clara and San Jose. Prices in the county also increased over last month — up 2.2% from June to July, according to the report.
Bad Debts Rise as Bust Erodes Home Equity
Posted: August 12th, 2010
ARTICLE, NY TIMES, 08.11.2010
The delinquency rate on home equity loans is higher than all other types of consumer loans, including auto loans, boat loans, personal loans and even bank cards like Visa and MasterCard, according to the American Bankers Association…… Even when a lender forces a borrower to settle through legal action, it can rarely extract more than 10 cents on the dollar. “People got 90 cents for free,” Mr. Combs said. “It rewards immorality, to some extent.”
Marcus & Millichap sees Residential Market Turning Around Soon
Posted: August 11th, 2010
Article & Video, Fox & M&M Blog, 08.11.2010
Apartment demand has moved well beyond employment gains with the absorption of nearly 46,000 units in the second quarter, the strongest gains since the fourth quarter of 2000. This aggressive lease-up of apartments resulted in a 20 basis point vacancy drop to 7.8 percent, a trend that should continue through the remainder of the year as pent-up demand finally releases. Barring a systemic shock that halts job creation, an additional 65,000 units will be absorbed through the second half of the year, pressing vacancies to 7.4 percent by year-end.
Builder betting on rebound by 2014
Posted: August 10th, 2010
ARTICLE, OC REGISTER, 08.10.2010
New home sales will be well above average by 2014, if not sooner, the president and CEO of Standard Pacific Homes predicted during a recent conference call with financial analysts.
Apartment owners see light at the end of the tunnel
Posted: August 10th, 2010
INTERVIEW, OC REGISTER, 08.10.2010
Q: When will the market turn around?
A: The market has to bottom first. Effective rents in O.C. started getting choppy as far back 2007 and peaked in Q4’07 at $1,685 per month. They were at $1,508 per month for Q2’10, so we would have to see almost 12 percent rent growth to get back to the prior peak. The market data would suggest that we have bottomed and should start to see some growth going forward.
Flooded with housing inventory, Freddie Mac REO sales surge despite foreclosure alternatives
Posted: August 10th, 2010
ARTICLE, REO INSIDER, 08.10.2010
The number of Freddie Mac “foreclosure alternatives” completed in the first half of 2010 increased 123% from the same period in 2009, but for all its efforts, the government-sponsored enterprise (GSE) is still taking on record numbers of housing inventory.
Vulture investors: They’re back – and making a bundle
Posted: August 5th, 2010
ARTICLE, CNN/MONEY, 08.02.2010
These are the glory days of the residential real estate investor. Low prices, rock-bottom interest rates and stable rental markets have created huge buying opportunities.
“It’s awesome right now. I don’t think we’ll ever see another time like this,” said Tanya Marchiol of Team Investments, which has operations in about 10 states but focuses mostly on the Phoenix market.
California leading employment indicator shows growth to come
Posted: August 5th, 2010
ARTICLE, LA TIMES, 08.05.2010
…..an employment indicator released Wednesday by Chapman University’s A. Gary Anderson Center for Economic Research shows that employment in California will continue to tick up this year. It indicates that year-over-year job growth will turn positive in the fourth quarter this year, something that hasn’t happened consistently in the state since 2007.
Condos that cost less than cars
Posted: August 3rd, 2010
ARTICLE, CNN/MONEY, 08.02.2010
The housing bust has made owning a home a lot more affordable — but in some places, prices are extraordinary; you can buy a nice condo for less than the cost of a new family car.
MIT economist measures how much foreclosures lower housing prices… 27%
Posted: July 28th, 2010
ARTICLE, MIT NEWS, 07.27.2010
In the study, “Forced Sales and House Prices,” which will be published in the American Economic Review, Pathak, Campbell and Giglio examined 1.8 million home sales in Massachusetts from 1987 to 2009. By looking in granular detail at real-estate prices, the researchers have concluded that a foreclosure reduces the value of a house by 27 percent, on average.
Home prices tick up 1.3% in May
Posted: July 27th, 2010
ARTICLE, LA TIMES, 07.27.2010
Home prices tick up 1.3% in May
It was the second straight monthly increase, according to the Standard & Poor’s/Case-Shiller index of 20 U.S. cities, but experts warn it is not likely to last. Los Angeles, San Diego and San Francisco are among the gainers.
Mortgage defaults in California at 3-year low
Posted: July 23rd, 2010
ARTICLE, LA TIMES, 07.23.2010
Banks are pushing alternatives such as loan modification programs and short sales ….. “The most important thing is the housing market has stabilized, that house prices are up and not down anymore,” said Kenneth Rosen, a professor at the UC Berkeley Haas School of Business.
Banks stepped up their seizure of homes from people already ensnared in the repossession process in the second quarter, reflecting an effort by economically resurgent financial institutions to clear troubled loans off their books after having survived the depths of the banking crisis. Many of those loans went into default months ago, taking an average of 9.1 months to get through the process, DataQuick said.
Loan-to-Value Ratios Spike Following Wave of Reappraisals
Posted: July 21st, 2010
ARTICLE, NATL REAL ESTATE INVESTOR, 07.21.2010
Of the 1,125 CMBS loans on properties that were reappraised during the first half of this year, 986 recorded loan-to-value ratios of greater than 100% largely due to falling valuations.
It’s a cause for concern because the unpaid principal balance exceeded the new property appraisals by a wide margin in many cases. The average loan-to-value ratio among the 1,125 CMBS loans in the survey sample was a whopping 160%, up from 72.7% when the loans were securitized. (The 1,125 loans total $15.4 billion in volume.)
What the bond guru sees coming
Posted: July 20th, 2010
ARTICLE, MONEY, 07.20.2010
The important thing to recognize is that if you’re looking for 10% returns (from stocks or bonds) to pay for college or to retire on, they’re not going to be there. We’ve been an asset-growth-based economy for so long. We’ve skimmed off the top, living off second and third mortgages on homes, and capital gains on stocks and even on bonds. Now instead of having money work for you, you’ve got to work for your money.
Office vacancies rise, rents drop in Southland again
Posted: July 20th, 2010
ARTICLE, LA TIMES, 07.20.2010
An oversupply of space, businesses’ reluctance to add costs and landlords’ eagerness to keep good tenants leads to some of the cheapest lease rates in years. In the Inland Empire, vacancy tops 25%.
Southern California office landlords faced more bad news in the second quarter as occupancy and rents in their buildings fell again.
The persistently soft market has created opportunities for tenant businesses to sign some of the cheapest leases available in several years. The pace of deals has picked up a bit, brokers said, but many companies are still carefully husbanding their finances and avoiding long-term rental commitments.
U.S. Home Construction Declined 5% in June
Posted: July 20th, 2010
ARTICLE, NY TIMES, 07.20.2010
“Financial distress on the part of many households, ongoing labor market weakness and vicious competition from an enormous overhang of existing homes all point to a very tough slog for homebuilders in the months and quarters ahead,” Joshua Shapiro, the chief United States economist for MFR Inc., said
Sacramento-area home sales hit 20-month high in June
Posted: July 20th, 2010
ARTICLE, SACRAMENTO BEE, 07.20.2010
“It really seems like California housing is parting ways with the national view. We’ve seen a much stronger recovery off the bottom,”
California foreclosures spike in June
Posted: July 19th, 2010
ARTICLE, OC REGISTER, 07.19.2010
After being down across the board in May, the filing of new foreclosure notices in California rose in June, while foreclosure sales dropped, reports ForeclosureRadar.com.
Penthouse Offices Sit Vacant as High Flying Corporate Opulence Goes Out of Style
Posted: July 19th, 2010
Offices at the top are going empty
ARTICLE, LA TIMES, 07.19.2010
Penthouse floors are vacant in some of the best office buildings in Los Angeles County, a sign of the troubled economic times and the gulf between asking prices and what tenants are willing to pay.
Commercial real estate development stalled until 2012, architects say
Posted: July 19th, 2010
ARTICLE, LA TIMES, 07.19.2010
With vacancies still on the rise in commercial properties in most parts of the U.S., construction of new buildings is expected to be rare this year and next, the American Institute of Architects said Wednesday.
U.S. home foreclosures reach record high in second quarter
Posted: July 19th, 2010
ARTICLE, LA TIMES, 07.19.2010
Bank repossessions increased 38% in the second quarter from the same period a year earlier for a record total of 269,952, according to data to be released Thursday by RealtyTrac.
Wall St. Hiring in Anticipation of an Economic Recovery
Posted: July 11th, 2010
ARTICLE, NY TIMES, 06.11.2010
While much of the country remains fixated on the bleak employment picture, hiring is beginning to pick up in the place that led the economy into recession — Wall Street.
Biggest Defaulters on Mortgages Are the Rich
Posted: July 9th, 2010
ARTICLE, NY TIMES, 07.09.2010
Whether it is their residence, a second home or a house bought as an investment, the rich have stopped paying the mortgage at a rate that greatly exceeds the rest of the population.
More than one in seven homeowners with loans in excess of a million dollars are seriously delinquent, according to data compiled for The New York Times by the real estate analytics firm CoreLogic.
Deeds-in-lieu gain favor with lenders as alternative to foreclosure
Posted: June 29th, 2010
ARTICLE, LA TIMES, 06.28.2010
….a simple message: Let’s bypass all the time-consuming hassles of short sales and foreclosures. Just deed us the title to your underwater home and we’ll call it a deal. We won’t come after you to collect any deficiency between what you owe us on the mortgage and what we obtain from the home sale. We might even be able to wrap up the whole transaction in as little as 30 to 45 days. How about it?
Home prices up 3.8% in April – but don’t celebrate
Posted: June 29th, 2010
ARTICLE, CNN/MONEY, 06.29.2010
That good news is tempered by a couple of factors. First, the one-year comparison was against a low-ebb mark. In April 2009, prices were just above a five-year low. Overall, prices are off 30% from their peak
Fannie Mae gets tough on homeowners who walk away
Posted: June 24th, 2010
ARTICLE, LA TIMES, 06.24.2010
The mortgage giant plans to go to court against those who can afford to make their payments but decide it’s not worth it. It also will limit their access to future loans.
Mortgage rates sink to lowest level on record
Posted: June 24th, 2010
ARTICLE, ASSOC PRESS, 06.24.2010
The average rate for 30-year fixed loans sank to 4.69 percent, from 4.75 percent last week, mortgage company Freddie Mac said Thursday.
That’s the lowest point since Freddie Mac began tracking rates in 1971.
Sales of U.S. New Homes Plunged to Record Low in May
Posted: June 23rd, 2010
ARTICLE, BLOOMBERG, 06.23.2010
The median sales price decreased 9.6 percent from the same month last year, to $200,900, today’s report showed.
Purchases dropped in all four U.S. regions last month, led by a record 53 percent drop in the West.
Housing Double-Dip to Slow Economic Recovery: Whitney
Posted: June 21st, 2010
ARTICLE, CNBC, 06.21.2010
While stopping short of predicting a full-blown double dip in the broad economy, Whitney said one is certainly in store for the housing market.
Housing Market Slows as Buyers Get Picky
Posted: June 17th, 2010
ARTICLE, NY TIMES, 06.16.2010
Exacting buyers are upending the battered real estate market, agents and other experts say, leading to last-minute demands for multiple concessions, bruised feelings on all sides and many more collapsed deals than usual.
U.S. Housing Starts Declined 10% in May
Posted: June 16th, 2010
ARTICLE, ASSOC. PRESS, 06.16.2010
Home construction plunged in May to its lowest level since December, as builders scaled back after a federal tax credit to lure buyers expired.
Report: Calif. inland economic growth to lag coast
Posted: June 16th, 2010
ARTICLE, BUSINESS WEEK, 06.16.2010
Slow economic growth and high unemployment will persist for the foreseeable future in California’s inland counties, even as increasingly robust signs of recovery begin appearing throughout the state’s coastal areas, according to an economic forecast released Tuesday.
UCLA Anderson Forecast: U.S. recovery a long, slow climb; Calif. recovery weaker than nation’s
Posted: June 16th, 2010
ARTICLE, UCLA, 06.16.2010
The California economy is expected to grow a bit slower than the nation’s for 2010, and slightly faster thereafter. This slow growth through the forecast period will result in only modest inroads into the state’s high unemployment rate. Los Angeles expected to recover more quickly than rest of the state
U.S. Home Foreclosures Climb 44% to Record in May
Posted: June 10th, 2010
ARTICLE, BUSINESS WEEK, 06.10.2010
U.S. home foreclosures reached a record for the second consecutive month in May, with increases in every state, as lenders stepped up property seizures, according to RealtyTrac Inc.
Owners Stop Paying Mortgages, and Stop Fretting
Posted: June 1st, 2010
ARTICLE, NY TIMES, 06.01.2010
Foreclosure has allowed them to stabilize the family business. Go to Outback occasionally for a steak. Take their gas-guzzling airboat out for the weekend. Visit the Hard Rock Casino.
“Instead of the house dragging us down, it’s become a life raft,” said Mr. Pemberton, who stopped paying the mortgage on their house here last summer. “It’s really been a blessing.”
A growing number of the people whose homes are in foreclosure are refusing to slink away in shame. They are fashioning a sort of homemade mortgage modification, one that brings their payments all the way down to zero. They use the money they save to get back on their feet or just get by.
Barry Sternlicht, the Real Estate Bargain Hunter
Posted: May 31st, 2010
ARTICLE, NY TIMES, 05.28.2010
There are no chandeliers on the three-story ceiling, no paintings on the walls. And there is nobody at the front desk to greet visitors. The only sound is the eerie gurgle of a 40-foot waterfall.
None of this deters Barry Sternlicht, the real estate investor who owns the building. “The bones,” he says, gesturing around the room. “The bones are extraordinary!”
Owners Bet on Raising the Rent, and Lost
Posted: May 29th, 2010
ARTICLE, NY TIMES, 5.29.2010
“The landscape has changed dramatically,” P. J. Johnston, a spokesman for the owners, said in an interview. “The economy has taken a major hit. Many properties are facing default.”
But just like Riverton and Stuyvesant Town, the owners of Parkmerced sought to take advantage of a roaring market to replace rent-regulated residents with tenants able to pay far higher rates.
Don’t get buffeted by changing winds. The housing recovery is real.
Posted: May 28th, 2010
ARTICLE, KIPLINGER, 05.2702010
The housing market rebound that began a year ago is very much intact, so don’t get sidetracked or confused by recent and almost unprecedented volatility due mostly to on-again, off-again tax incentives.
Is the Housing Market on the Rebound?
Posted: May 26th, 2010
ARTICLE, TIME, 05.26.2010
A recent study of 92 economists by financial-products firm MacroMarkets found that on average housing prices are expected to drop slightly in 2010 and begin rising again next year. That means that for the first time in years someone who buys a house this spring will most likely see their home appreciate in the next year. And rising housing prices, just like falling ones, tend to feed on themselves.
Home Prices Show Softness Again
Posted: May 26th, 2010
ARTICLE, FORBES, 05.26.2010
The housing market is looking far better than it was a year ago, but there are troubling signs in renewed price weakness.
“It looks a little like a double-dip already,” economist Robert Shiller, the co-creator of the Case-Shiller index, said in an interview with the Associated Press. “There is a very real possibility of some more decline.”
Housing Prices Remain Weak
Posted: May 26th, 2010
ARTICLE, WSJ, 05.26.2010
“We’re just going to go through an adjustment period,” said Patrick Newport, an IHS Global Insight economist.
“After it settles, I think the market’s going to start growing sustainably because the [labor] market’s starting to create jobs,” he said.
Think housing is recovering? Think again.
Posted: May 25th, 2010
ARTICLE, FORTUNE, 05.25.2010
we’re coming off of an artificial bump from the first time home buyer credit, which expired last month. He predicts the second half of this year will see sluggish economic growth and that housing prices, at best, will be flat for the next few months, while commercial real estate “is likely to see significant declines.”
Mortgage Rates at New Lows, Thanks to Europe’s Debt Crisis
Posted: May 25th, 2010
ARTICLE, CNBC, 05.24.2010
Here’s some good news for the struggling US housing market: Thanks to the European debt crisis, mortgage rates are at historic lows.
House-Price Drops Leave More Underwater
Posted: May 23rd, 2010
ARTICLE, 05.23.2010
The downturn in home prices has left about 20% of U.S. homeowners owing more on a mortgage than their homes are worth, according to one new study, signaling additional challenges to the Obama administration’s efforts to stabilize the housing market.
The bottom is near — yet so far — for Inland Empire apartments, report says
Posted: May 23rd, 2010
latimes.com
ARTICLE, LA TIMES, 05.23.2010
Apartment occupancy and rents in the Inland Empire will continue to fall this year before recovering in 2011 and 2012, commercial real estate brokerage Marcus & Millichap said in a report Thursday.
What Kind of Homeowners Choose to Default?
Posted: May 23rd, 2010
ARTICLE, LA TIMES, 05.23,2010
In fact, he says, their decisions to pull the plug “may not turn out to be economically rational.” But they walk anyway, in large part because they are at the end of their emotional rope. They’ve transitioned from feelings of anxiety and hopelessness to outright anger at their lenders, the government and/or a financial system they consider to be unfair.
Time for Housing to Clear
Posted: May 21st, 2010
ARTICLE, WSJ, 05.21.2010
In other words, the housing market may yet be allowed to clear. Painful, but inevitable.
Fed Raises U.S. Growth Range, Sees Lower Unemployment
Posted: May 20th, 2010
ARTICLE, BLOOMBERG BUSINESS WEEK, 05.20.2010
Federal Reserve officials raised their U.S. growth estimates for 2010 and lowered forecasts for unemployment and inflation, according to minutes of the Federal Open Market Committee meeting on April 27-28.
Mortgage delinquencies, foreclosures break records
Posted: May 19th, 2010
ARTICLE, ASSOC. PRESS, 05.19.2010
More than 10 percent of homeowners had missed at least one mortgage payment in the January-March period, the Mortgage Bankers Association said Wednesday. That number was up from 9.5 percent in the fourth quarter of last year and 9.1 percent a year earlier.
U.S. Home Building Gains, but New Permits Fall
Posted: May 18th, 2010
ARTICLE, NY TIMES, 05.18.2010
Home building rose in April, government figures showed on Tuesday, as activity was possibly spurred by an $8,000 government tax credit for new buyers. But the data suggested that builders might also be slowing down their future construction plans.
U.S. Mortgage Program Stalling, Data Shows
Posted: May 17th, 2010
ARTICLE, NY TIMES, 05.17.2010
“The program is dying,” the blog Calculated Risk concluded after examining the data.
But the number of new trials is beginning to level off, leading to worries that the potential pool of eligible households is rapidly diminishing. Furthermore, many borrowers have a great deal of difficulty making it out of the trial period. The number of canceled trial modifications is nearly as large as the number of permanent modifications.
JPMorgan Chase Warns Investors About Underwater Homeowners Walking Away
Posted: May 17th, 2010
ARTICLE, HUFFINGTON POST, 05.17.2010
About one in eight defaults in February were strategic, according to an April 29 research note by a team of Morgan Stanley analysts led by Vishwanath Tirupattur. Strategic defaults are those in which the homeowner could have continued to make payments but chose not to.
New-home buyers reemerge in Southern California
Posted: May 17th, 2010
ARTICLE, LA TIMES, 05.13.2010
Location is also key — buyers don’t want extremely long commutes, analysts say.
Foreclosures plateau – finally. Repossessions soar
Posted: May 13th, 2010
ARTICLE, CNN/MONEY, 05.13.2010
But the number of homes repossessed during April is at an all-time high of 92,432. That is a 45% increase over April 2009. If repossessions continue at this pace, more than 1.1 million homes will be lost in 2010.
Housing Optimists Are “Not Paying Attention” to the Facts, Says Dean Baker
Posted: May 13th, 2010
ARTICLE & VIDEO, YAHOO FINANCE, 05.13.2010
“I think we’re going to see a big fall-off in purchases for the rest of 2010 and even into 2011,” Baker says. “So the idea that somehow the market is stable, that housing prices will rise anytime soon – it’s really hard to make a case for that.”
OUR NEW VIDEO SERIES “Tricks of the Trade”
Posted: May 11th, 2010
VIDEO, SEQUOIA INVESTMENT PARTNERS, 05.11.2010
An introduction to our new video series
Housing’s Dark Cloud
Posted: May 10th, 2010
ARTICLE, BOSTON HERALD, 05.10.2009
Housing experts say the end of the housing tax credit – which could have spurred as much as 70 percent of sales in the last four months – and thousands of homes facing foreclosure, could throw cold water on rising prices and sales. This perfect storm may set up a “double dip” housing recession
60 Minutes: Walking Away (Strategic Defaults/Foreclosures)
Posted: May 10th, 2010
VIDEO, 60 MINUTES, 05.09.2010
60 Minutes looks at the growing trend of “Strategic Default,” which is when a homeowner who is financially capable of making their mortgage payments finds themselves so far under water that they simply do the math and make the decision to walk away.
Yale’s Robert Shiller Discusses Strategic Defaults
Posted: May 10th, 2010
VIDEO, 60 MINUTES, 05.09.2010
Yale Economics Professor Robert Shiller developed the widely used Case-Shiller Home Price Index. He talks with Morley Safer of “60 Minutes” about trends in real estate and whether mortgage walkaways are “going viral.”
White flight? Suburbs lose young whites to cities
Posted: May 10th, 2010
ARTICLE, ASSOCIATED PRESS, 05.09.2010
In a reversal, America’s suburbs are now more likely to be home to minorities, the poor and a rapidly growing older population as many younger, educated whites move to cities for jobs and shorter commutes.
Buy a House, Sell REITs
Posted: May 7th, 2010
ARTICLES, KIPLIGER, 05.07.2010
One of the savviest and most cautious real estate investors says that housing prices have hit bottom but real estate investment trusts could fall a long way.
Economy Gains Impetus as U.S. Adds 290,000 Jobs
Posted: May 7th, 2010
ARTICLE, NY TIMES, 05.07.2010
At a time of extreme uncertainty in the financial markets, the American economy is showing signs of a sustained recovery, adding an unexpectedly high number of jobs last month.
‘Strategic’ Mortgage Defaults Jump to 12% of Total
Posted: May 4th, 2010
ARTICLE, BLOOMBERG, 04.29.2010
About 12 percent of all mortgage defaults in February were “strategic,” up from 4 percent in mid-2007, New York-based Morgan Stanley analysts led by Vishwanath Tirupattur wrote in a report today.
In foreclosure crisis, demand for family homes in Phoenix rises
Posted: May 3rd, 2010
ARTICLE, ARIZONA REPUBLIC, 05.03.2010
Since September, the number of available rental homes in metropolitan Phoenix has dropped by 40 percent, and probably even more than that when it comes to three- to four-bedroom homes in desirable neighborhoods.
The sharp drop is another ripple effect of the foreclosure crisis.
METRO FORECLOSURE HOT SPOTS BUCK NATIONAL TREND IN FIRST QUARTER WITH ANNUAL DECLINES IN FORECLOSURE ACTIVITY
Posted: May 2nd, 2010
ARTICLE, REALTYTRAC, 05.02.2010
“The decreasing foreclosure activity in some of the nation’s top foreclosure hot spots in the first quarter is largely the result of government intervention and other non-market influences, and not a sure signal that those areas are out of the woods yet when it comes to foreclosures,”
California added 393,000 people in 2009
Posted: April 30th, 2010
ARTICLE, LA TIMES 04.30.2010
Officials said the state’s housing growth in 2009 underscored the severity of the housing downturn. Only 62,300 new homes were added in California in 2009
Los Angeles House Flipping Hot Spots
Posted: April 26th, 2010
ARTICLE, LA TIMES, 4.25.2010
Map of zip codes with the most flipping activity
Flipping houses is back in South Los Angeles
Posted: April 26th, 2010
ARTICLE, LA TIMES, 4.25.2010
Along with low prices, real estate investors are drawn to the area because of its proximity to the ports of Los Angeles and Long Beach, Los Angeles International Airport and other job centers, including factories.
In Sour Home Market, Buying Often Beats Renting
Posted: April 22nd, 2010
ARTICLE, NY TIMES 4.20.2010
In some once bubbly markets, prices have fallen so far that buying a home appears to be a bargain, based on a New York Times analysis of prices and rents in 54 metropolitan areas.
Distressed Home Sales on the Rise
Posted: April 21st, 2010
ARTICLE, FIRST CORE AMERICAN LOGIC, 04.08.2010
The report below indicates that distressed home sales – such as short sales and real estate owned (REO) sales –
accounted for 29 percent of all sales in the U.S. in January: the highest level since April 2009.
LA Times: COMMERCIAL REAL ESTATE QUARTERLY
Posted: April 20th, 2010
ARTICLE, LA TIMES 04.19.2010
Vacancies are increasing and rents are falling. The trend is tough for landlords but great for tenants who are looking for new space or negotiating to renew their existing leases.
Just when you thought it was safe: Foreclosures spike
Posted: April 20th, 2010
ARTICLE, CNN/MONEY 04.15.2010
In the first three months of 2010 foreclosure filings rose 7%, to more than 930,000, compared with the previous quarter, according to the online foreclosure marketing firm RealtyTrac. That is a 16% jump over the first three months of 2009.
More Incremental Gains for Southland Real Estate Market
Posted: April 19th, 2010
ARTICLE, DATAQUICK, 4.13.2010
Home sales and prices continued their steady but pokey climb up from the bottom in Southern California last month as buyers scrambled to take advantage of low prices and low mortgage interest rates.
California Statewide March Home Sales
Posted: April 19th, 2010
ARTICLE, DATAQUICK 04.15.2010
Indicators of market distress continue to move in different directions. Foreclosure activity is off its peaks reached in the past two years but remains high by historical standards.
U.S. Foreclosure Filings Rise 16% as Bank Seizures Set Record
Posted: April 16th, 2010
ARTICLE, BLOOMBERG 4.15.2010
Foreclosure filings in the U.S. rose 16 percent in the first quarter from a year earlier and bank seizures hit a record as lenders stepped up action against delinquent homeowners, according to RealtyTrac Inc.
Foreclosure activity up sharply despite loan modification program
Posted: April 16th, 2010
ARTICLE, LA TIMES 04.15.2010
The number of U.S. households caught in the foreclosure process during the first quarter jumped 7% from the prior quarter as activity increased sharply in March, a real estate firm will report Thursday.
Watchdog panel says Obama plan to ease foreclosure crisis does too little, comes too late
Posted: April 16th, 2010
ARTICLE, AP, 4.14.2010
A watchdog panel overseeing the financial bailouts says the Obama administration’s flagship mortgage aid program lags well behind the foreclosure crisis and leaves too many families out.
New round of foreclosures threatens housing market
Posted: April 12th, 2010
ARTICLE, WASHINGTON POST 03.12.2010
About 5 million to 7 million properties are potentially eligible for foreclosure but have not yet been repossessed and put up for sale.
“Cash for Keys” Aids Home Borrowers, Investors
Posted: April 12th, 2010
ARTICLE, REUTERS 03.12.2010
Jon Daurio, chief executive officer of mortgage investor Kondaur Capital Corp., recently offered a $4,000 check to Barry Culver for the deed to his Bryan, Ohio house.
No Help in Sight, More Homeowners Walk Away
Posted: April 12th, 2010
ARTICLE, NY TIMES 02.03.2010
“People like me are beginning to feel like suckers,” Mr. Koellmann said. “Why not let it go in default and rent a better place for less?”
New wave of foreclosures by end of 2010 is feared
Posted: April 12th, 2010
ARTICLE, LA TIMES 02.16.2010
Experts fear that a new wave of foreclosures will hit this year as prolonged unemployment makes it difficult for millions of homeowners to pay their mortgages — and many of them aren’t likely to get much help from a federal program aimed at keeping them in their houses.
Commercial property buyers and sellers remain far apart
Posted: April 12th, 2010
ARTICLE, LA Times 04.05.2010
Despite some improvements in the economy, potential buyers and sellers of Los Angeles-area commercial real estate are still far apart in their perceptions of what prices should be, an investment bank said Monday.
As Fed’s mortgage purchases end, eyes turn to investors
Posted: April 12th, 2010
ARTICLE, LA Times March 31, 2010
The government’s $1.25-trillion program to prop up the housing market by purchasing mortgages came to an end Wednesday — in a small, messy room at the Federal Reserve Bank of New York with four desks and a Nerf basketball hoop.
Foreclosure auction of Nicolas Cage’s mansion is a flop
Posted: April 12th, 2010
ARTICLE, LA Times 04.08.2010
Nicolas Cage is leaving Bel-Air. And not by choice.
Southern California apartment rents are expected to keep falling
Posted: April 12th, 2010
ARTICLE, LA Times 04.08.2010
A study shows the average cost dropping as much as 3.5% in L.A. County this year, 2.4% in Orange County and less than 1% in San Bernardino and Riverside counties but inching up in San Diego County.
UCLA Anderson Forecast, March 2010
Posted: April 12th, 2010
ARTICLE, UCLA/Anderson School of Management 3.24.2010
The UCLA Anderson Forecast renders a “bipolar” diagnosis for the national economy, referencing the dual conditions of slow-but-sure growth in the national gross domestic product, coupled with an unemployment rate predicted to remain in double digits until 2012.
The 10 Must-Have Features in Today’s New Homes
Posted: April 12th, 2010
ARTICLE, WSJ.com, 2.1.2010
Buyers today want cost-effective architecture, plans that focus on spaces and not rooms and homes that are designed ‘green’ from the outset,”
At foreclosure auctions, broken dreams on sale
Posted: April 12th, 2010
ARTICLE 10.15.09
Mortgage Crisis Shuffles Toward Fancier Neighborhoods
Posted: April 12th, 2010
Real Estate Advisor Mortgage Crisis Shuffles Toward Fancier Neighborhoods Bernard Condon, 10.07.09, Has all the good news dribbling in from the housing front masked a new crisis? New home sales have risen for five months now, the latest Case-Shiller figures say prices are rising and homebuilders like Toll Brothers and Pulte Homes are seemingly off [...]
View The Menace of Strategic Default
Posted: April 3rd, 2010
ARTICLE, CITY JOURNAL, 04.15.2010
Option ARM Borrowers Running Out Of Time
Posted: March 12th, 2010
ARTICLE, REALTYTRAC 03.2010
Of all the mortgage ideas developed during the past few years, none tops the option ARM for sheer awfulness. And now the mortgage mess is about to get far worse as millions of option ARMs begin to recast. Not “reset” — but recast.
Housing Forecast: More Foreclosures, Home-Price Declines
Posted: January 27th, 2010
ARTICLE, TIME/CNN, 01.07.2010
The decimated housing market may get considerably worse before it gets better, according to housing-industry professionals, who expect foreclosures and home-price declines to continue pressuring the sector through at least the first half of 2010.
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