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Posts Tagged ‘Housing Market’

Organizations react to housing plan

February 8th, 2012

President Barack Obama’s housing plan represents the federal government’s recognition of the importance of the rental housing market, according to the National Multi Housing Council (NMHC) and National Apartment Association (NAA).

In that respect the organizations support the plan, specifically the initiative to use bulk sales of real estate-owned properties held by the Fannie Mae, Freddie Mac and the government. The organizations did warn against housing policies that emphasize homeownership at the expense of rental housing, noting that preferential policies contributed to the national economic crisis.

With regards to the plan, the organizations also noted that care should be taken to ensure the repurposed homes are maintained in good condition, suggesting that owners and rental managers will need to work together to take advantage of the opportunity.

“Importantly, the president’s proposal underscores our key message that while there might be an oversupply of single-family housing, there is a shortage of rental housing,” NMHC senior vice president of government affairs Cindy Chetti said in the statement. “Demographics and changing lifestyles have led to a structural shift in our nation’s housing preferences to more heavily favor renting. Renters could make up half of all new households this decade, more than seven million new renter households.”

These projections indicate investors may need the help of property management companies and other professionals to meet demand in the years ahead.

2012 will be better than 2011, panelists say

February 5th, 2012

Property managers may be looking at a bright year ahead, if rental housing industry professionals at the National Multi-Housing Council’s (NMHC) recent Apartment Strategies Conference panel “Looking Ahead: What?s Next for the Apartment Recovery” are correct.

According to Multi-Housing News, panelist Jay Lybik predicted that 2012 will be a better year than forecast. He stated that the homeownership rate will rise slightly in the next few years and reach 65 percent in 2014, but suggested this is not a bad sign for rental housing stakeholders.

Lybik noted that there are about 14 million single family rentals in the nation, accounting for 37 percent of the rental market. Partly because of that, he indicated, the success of rental business does not depend on Americans remaining disenchanted with homeownership. He also noted that similar prices for renting and buying housing may favor rental managers, since a large down payment is not needed.

Panelist and NMHC chief economist Mark Obrinsky stated the year will be slightly better than 2011, according to the source, noting that economic recovery is occurring, but it remains to be seen how strong and fast it will be.

Ron Witten, industry professional and panelist, suggested that a major factor in the performance of the rental housing industry this year will be the number of jobs added to the economy for young adults, noting it will be a factor in determining income growth and rent levels.

A look at the Housing Market in Austin

July 16th, 2010

photo credit: Kumar Appaiah

Austin is the capital of Texas and is the city with the fastest population growth in Texas over the last 15 years. The area boasts one of the highest hourly rate averages for the state with the top employers as the State of Texas, Dell Inc. and The University of Texas at Austin. These factors have always been a stabilizing force for the real estate market in the area. Austin is 4th on a List by Forbes magazine of the best cities in America to earn a living due to the great pay and low cost of living. In addition, a RelocateAmerica.com report rated Austin the third best city to move to and their fifth best in terms of being environmentally friendly. However, how is the market fairing in recent times?

Since the end of 2006, the appreciation of home prices has taken a drastic turn downward compared to the national average. Just two years ago the median home price in Austin was in line with the national average though; with most homes being sold for anywhere between $140k and $250k. Since the beginning of this year, house prices have seen an upward trend, which is great for sellers. In the first quarter, the amount of houses available on the market continues to rise, but sales have been dropping. January was the second worst month for Austin real estate sales in the past ten years. Each year, the winter months are slow for real estate in Austin, rising steadily through the spring and declining in the fall.

The tax credit recently ended, which made March a huge real estate month for Austin. In the past few years, many fixer uppers were being bought, renovated and sold. This trend has ended and cheaper homes are being sold at huge discounts because they are not selling. The market for condos has seen a huge increase in recent months and the luxury real estate market is doing extremely well this year. So even though there is a gap between high end home sales and low end sales, the overall picture still bodes well for Austin. In all, it looks like the market in Austin is on an uptrend and will bounce back fully, before other major U.S. cities.

A Look at the Housing Market in San Antonio

July 13th, 2010

photo credit: ChicagoGeek

San Antonio, Texas has a reputation for offering the attractions that most city folk are used to; while also having the feeling of a small town in many areas. Many people don?t know just how large the city of San Antonio is. It?s the 7th largest city in the United States. In the big state of Texas, San Antonio is also the most visited or has the highest rate of tourists. This is because of great tourist destinations like the TPC San Antonio Golf Course, Alamo and Seaworld. The unemployment rate is also lower than those of other large cities in the U.S. So how does the real estate market in the area stack up?

First off, the market in San Antonio is as unique as the city itself. The home prices have remained quite stable and don?t appreciate rapidly in comparison to other major cities of the same size. This slight stagnation didn?t prevent home sales in the first quarter from rising by 10% over last year. Even though San Antonio is one of the largest cities in Texas, the purchase price of homes in the city are generally much less expensive than in other parts of the state. The median home price this quarter for the area was only $146k and home buyers were only required to have an annual income of $26k to be approved for a home loan or mortgage. This has been a real draw or attraction to home buyers in years past and the current trend seems to indicate that things will remain stable in regards to the amount of buyers that purchase in San Antonio. It is currently still a buyers market in San Antonio. However, many realtors are noting that there has not been a drop off of sales, even though the tax incentive expired in May of this year.

All of this bodes well for a city who?s real estate market has not changed very much even with the change in economy. You?ll need a good Realtor in San Antonio, because the prices of homes, while remaining steady; can vary greatly depending on the school district and area you choose.

A Look at the Housing Market in Fort Worth

July 6th, 2010

photo credit: jamesbrandon

Fort Worth, TX is the seventeenth largest city in the United States. It?s a city that boasts the retention of its? Western heritage, while still having a flare for the modern and beautiful. The city houses the first painting that Michelangelo produced and have nice attractions in Sundance Square, for young and old alike. So how?s the housing market in Fort Worth fairing?

The housing market in Fort Worth, Texas is going quite well. Many would even say it?s phenomenal considering the market in other areas of the U.S. Home values in Fort Worth are very similar to what is being offered on the market in San Antonio?another Texas city with high property values. The median price for homes in Fort Worth is around $147k. Foreclosures have recently gone down by about 4% as of May 2010, which is a good sign for the area as well. The boost in May is 1.5% better than in April. The dip in mortgage rates in the areas has been a catalyst for many buyers.

In Fort Worth, the indicators are that local home owners are deciding to stay with their properties even if the home value declines. While, the number of homes sold in May was approximately 6,026; the number of new homes available is only 41. For many this would seem to be a great sign that the shift may be heading towards a sellers market. This would be a rarity in any city in our nation right now and bodes well for Fort Worth sellers. On the whole the cut in interest rates seemed to spur buyers in the area to make purchases in the first quarter while they could take advantage of the tax credit that expired in May. Many in the housing industry are paying close attention to cities that are leaning toward becoming a ?sellers market? again. Large cities like Fort Worth seem to be indicators in the real estate market. Many are hoping that the stability and even progress of the markets in places like Fort Worth will be a sign of good things to come in metropolitan housing markets nationwide.

A Look at the Housing Market in Houston

July 2nd, 2010

photo credit: (Bill and Mavis) – B&M Photography

Houston, Texas is the largest and by far, the most well known cities in the state. The economy in Houston has been stable for many years and a draw to new home buyers for decades. The housing market in Houston Texas is currently growing rapidly; in start contrast to many other large cities in the U.S. Basically, single-family homes are the hot commodity and there are many people converging on the city in search of luxury homes. The biggest increase in sales in Houston was in this high end market. Many in the industry are touting Houston as the new place to live for the nouveau-riche and uber-wealthy. The homebuyers tax credit that ended in March of this year, really buoyed sales in the first quarter. Many feel that this was the single driving force behind the fact that Houston saw an increase in sales where many cities were still stagnant.

Sales of single-family homes have boomed by almost 30% recently, according to the Houston Association of Realtors (HAR). Usually, these homes are very valuable because of their prime location and they appreciate over time. The appreciation of single-family homes is still in flux, but the trend is moving upwards. The amount of listings of sales went up 25% in one year. Additionally, the pending sales of single-family homes has gone up, thus revealing a boom in Houston?s housing market. Additionally, total dollar volume being exchanged hands has risen by $315 million dollars in the expanse of one year. The reason for some of this activity is that basically people are earning more money in Houston and their paychecks seem to match the inflation in the area. The value of the U.S. dollar is gaining ground, and goes particularly far when purchasing a home in Houston. Houston is an ultra modern and trendy place to live and visit. The diversity of people and cultures also make Houston a hot spot for new home buyers. Also, being the fourth largest city in the nation, it is to Houston?s credit that the housing market has picked up in recent years. It is also a credit and hopefully a forecast of things to come for the housing market in the United States overall.

A Look at the Housing Market in El Paso

June 29th, 2010

photo credit: Felix, a secas

El Paso is located in the Northwestern corner of Texas, bordering Mexico and New Mexico. Because it is a border state with Mexico, the city sees about 20 million pedestrian and vehicle border crossings per year. El Paso is also known as the Sun City because the city gets over 300 days of sunshine per year. This and its warm, dry climate make it a popular retirement destination. El Paso boasts a diverse population of 700,000 and was named the Second Safest City in America in 2009. Being named one of the safest areas in the country is always a big draw for any real estate market. This is especially true in Texas, where many are concerned about illegal border crossings.

The real estate market in El Paso is estimated to expand exponentially, because the area is expected to grow in population by 35% by the year 2020. Currently the occupancy rate of 96.2% is slightly higher than the Average for Texas right now. Though home appreciation has been going slightly south in El Paso, it has not dropped as much as the national average. With that being said, El Paso is still in a buyer’s market. Over 40% of houses sold from in 2008 were in the $100,000 to $160,000 range. The number of homes sold in the area went down from 7,000 homes in 2006 to under 5,000 in 2008, but the average home price increased about $9,000 in that time. This quarter the median home sale price was around $144k. This is an increase over the previous years, which is great news considering the market in other areas.

Like other areas in the country, interest rates in El Paso are at their lowest in years. This has been an incentive for home buyers new and repeat buyers alike. There are currently approximately 5,400 homes for sale and 250 foreclosures. The first quarter tax stimulus seemed to help home sales in the region. Since the tax stimulus is extended for active military, the housing market should not decline with the additional troops coming to Fort Bliss. This bodes rather well for the real estate market in El Paso, TX.

The Real Estate Market in Miami

June 15th, 2010

photo credit: wyntuition

Miami is known as a city of sun and fun. It’s where everyone from retirees who are active to professional athletes go to play and enjoy themselves year round. For those who want to make Miami home or a home away from home, it’s a good idea to first consider the current real estate market.

The real estate market in Miami is pretty much booming. This of course is comparative to the rest of the nation. Now a booming market simply means that buyer demand is greater than supply and that?s rare nationwide. The median price for a home in Miami is $280 thousand dollars. That is a pretty good median, considering what the real estate market has been through in recent years. Add to that the fact that the average sale price has been over half a million dollars and Miami is definitely doing better than the rest of the nations real estate markets.

Although last year the sales in Miami were abysmal, this year the rebound has been noticeable and has attracted investors and those looking to purchase their first and even second home. Waterfront property is always a big draw and if you?re able to hold on to your property for over 5 years, the investment will pay off in Miami. That?s a promise that many real estate markets can no longer guarantee. There are so many resort areas and that even foreign investors are a big draw for the Miami real estate market. As mentioned, active retirees, celebrities, professional athletes and investors are just as attracted to Miami especially the Miami beach area.

Over 500 hundred homes sold in February and even though this is down just a bit from last year, it?s a good sign for the Miami real estate market, comparatively. Do a bit of research to find out if you prefer a home or condominium and you may well be making the move to Miami yourself.

A Look at the Housing Market in San Francisco

May 28th, 2010

photo credit: Rev Dan Catt

The real estate market in San Francisco is struggling to recover. Although leading economists seem to think that the worst of the area’s real estate problems may be?over, the current market seems to indicate that there are varying degrees of recovery. Within the San Francisco area, some areas have turned the corner, while others are still struggling to recover. Lower interest rates are given as one reason for the current upturn in the real estate market, along with the beneficial effects of both the national and California tax credits. These factors are working together to make housing more affordable and attractive, which is starting to attract buyers now that the country’s overall economic crisis appears to be stabilizing.

Fortunately, real estate foreclosures are becoming less of a dominant influence. Although there is certainly no shortage of foreclosed properties on the market, there are signs that traditional real estate sellers and resellers are starting to re-enter the field. As the market continues to improve, the real estate situation will continue to strengthen for sellers. Mortgage brokers in the area report that business is picking up, with an increase in purchases and traditional real estate sales. In fact, although many feel that it is still basically a buyer’s market in the San Francisco area, the situation is definitely strengthening for sellers as well.

Of course, the recent improvements in the market are still in the early stages. The unemployment rate in the San Francisco area is still high, and the risk of foreclosure remains for many people. Real estate investments made at this time should be viewed as more of a long term investment, since it is unlikely that the quick escalation in home values that occurred in the early 2000s will return anytime soon. Of course, there is still money to be made for talented investors who have the ability to quickly fix up and flip homes. However, most investors are still proceeding carefully and factoring in their own financial situation, when considering the currently favorable interest rates and tax credits.

The real estate market in the San Francisco area is difficult to state in generalized statistics, due to the many micro-markets that seem to exist. However, overall the prices for single family homes, although still below prior levels, are showing an increase in most areas. The sale of single family homes in March of 2010 was up overall when compared to the same time last year and March sales were up over February sales. Loft and condo sales are also up over last year, with March sales up over February. The median price for homes in San Francisco is a little over $600k and has increased a bit during this first quarter. The average number of days that a property stays on the market before it sells has declined, which is also a good sign overall in regards to the area’s real estate market.

A Look At The Housing Market in Seattle

May 25th, 2010

photo credit: brewbooks

Seattle is best known for start up companies that have gone to the top of the charts and for being a community of artists as well as musicians. For many years Seattle has been ahead of it’s time in being diverse and recognizing and celebrating the talents of different peoples and cultures. While this has been a big draw to those wanting to raise a family in such a great place, the actual weather in Seattle, with its constants rains and often dreary skies has been a bit of a deterrent. So let’s examine how has the Seattle real estate market is doing currently?

Well Seattle is on the map to participate in the first nationwide realtors open house. On April 10th and April 11th there will be open houses nationwide and the hundreds of homes on sale in Seattle will be part of this group. This is a push to get sellers interested in what’s out there in Seattle and to make purchases quick. Later this month we?ll be able to draw some conclusions as to whether this massive push to create interest in the real estate market in Seattle was a success, inconsequential or a failure.

It is estimated that there will be sales of close to 15 hundred homes in the month of April. That is better than most markets in the U.S. There has however been a 24% increase in foreclosed homes on the Seattle market. However analysts say that the month of April is truly the bottom for Seattle and there’s only success and continued growth from here. That’s extremely encouraging as many metropolitan areas are still very shaky and few are apt to make such strong predictions.

The increase in traffic to Seattle open houses, even before the nationwide open house push, is as good indication that Seattle’s real estate market is strong and will gain momentum. Many in the Seattle real estate market are encouraging those who want in, to buy now before home prices become out of reach. Yes, Seattle’s real estate market is doing quite well.