Selling AZ With Rebecca : August 2013

Friday, August 30, 2013

6 Hot Spots for Retirees

DAILY REAL ESTATE NEWS | FRIDAY, AUGUST 30, 2013

As the housing recovery rolls on, baby boomers and empty-nesters may be looking to finally downsize and trade-in for a retirement home in a new locale. Kiplinger recently ranked the top states in which to retire based on special tax breaks for seniors, easy access to amenities, and active lifestyle opportunities for older adults.

The following are the states that ranked at the top and some of the tax breaks for seniors there:

Arizona: Home owners who meet certain residency requirements and are ages 70 and up can apply to defer their property taxes.
Delaware: It has no state or local sales tax, and older home owners may be able to qualify for a property tax credit up to $500.
Florida: The state has no inheritance tax, state tax, or retirement income tax.
Georgia: Social security income and up to $35,000 of most types of retirement income are exempt from taxes.
Louisiana: Civil service, state and local government pensions, as well as military income and social security, are exempt from the state’s income taxes.
Mississippi: It has one of the lowest property taxes in the nation.

Source: “9 Best Places to Retire,” AOL Real Estate (Aug. 29, 2013)

http://realtormag.realtor.org/daily-news/2013/08/30/6-hot-spots-for-retirees

Thursday, August 29, 2013

Some Home Owners Say Rentals Are Ruining Neighborhoods

DAILY REAL ESTATE NEWS | THURSDAY, AUGUST 29, 2013

As the number of single-family rentals grows across the country, home owners are seeing their neighborhoods changing — and not necessarily for the better.

“When there are fewer home owners, there is less ‘self-help,’ like park and neighborhood cleanup, neighborhood watch,” says William M. Rohe, a professor at the University of North Carolina at Chapel Hill, who recently conducted research on home ownership’s effects.

Even landlords and tenants of single-family rentals who are conscientious about the home’s upkeep will be less likely to invest in the property than owner-occupants, Rohe notes. “Who’s going to paint the outside of a rental house? You’d almost have to be crazy,” he says.

The issue has sparked a “home owner versus tenant” challenge in many neighborhoods across the country. Home owners are complaining that the growth in rentals in their neighborhoods has put a strain on their relationships with neighbors, made home maintenance a lower priority, and invited in more crime.

For example, a homeowners association in Atlanta is fielding a high number of complaints from owners about new renters moving in. The complaints are over everything from tenants’ loud music and barking dogs to prostitutes in the neighborhood and two tenants who had a murder warrant out for their arrest. The association wants to phase out rentals from their neighborhood, but they realize that will take time.

“You’re caught between ‘I want the dues paid’ and ‘I want a peaceable, nice existence,’ ” says Joi Aikens, the president of the homeowners association.

Investors, however, say that home owners should be glad tenants are there. Investors say they purchased homes in neighborhoods that were plagued by foreclosures and that, by having tenants there, they have helped keep home values up. Otherwise, they say, the homes would stand vacant and left to deteriorate.

Source: “As Renters Move In, Some Homeowners Fret,” The New York Times (Aug. 28, 2013)

http://realtormag.realtor.org/daily-news/2013/08/29/some-home-owners-say-rentals-are-ruining-neighborhoods

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Wednesday, August 28, 2013

Back-to-School Housing Bargains Abound

DAILY REAL ESTATE NEWS | WEDNESDAY, AUGUST 28, 2013

An oversupply of student housing in college towns is prompting landlords nationwide to cut rents -- some by up to 6 percent -- as they worry about rising vacancies, The Wall Street Journal reports.

Private-equity firms, real estate investment trusts, and private developers have been targeting off-campus accommodations since 2010, under a belief that schools with tightened budgets would not be able to keep up with supply of on-campus housing or have enough modern options available to students.

But now, housing experts say, the sector has seen a glut in options that will cause many landlords of off-campus student housing to have to cut their rents to lure more tenants.

Nationwide, 51,000 new off-campus beds are expected to be available in college towns this year -- a record number, according to Axiometrics Inc.

"There's more supply than demand; that's the easy way to say it," says Jay Denton, Axiometrics' director of research.

For example, an off-campus complex in Tempe, Ariz., near Arizona State University, had a 41 percent vacancy rate last year. The posh complex even boasted free tanning and a hot tub to lure college students. But by cutting its rents 12 percent, the complex was able to decrease its vacancy to 3 percent this year.

Off-campus housing near Florida State in Tallahassee also had to lower its rents about 4.8 percent this year due to an oversupply of options in the area.

“Developers appear to have overshot the mark in numerous markets,” The Wall Street Journalreports. “Some of them failed to take into account other construction that was planned ... Others misjudged future enrollments or the willingness of students to pay up for off-campus living at the time when many families are still pressed in the aftermath of the economic downturn.”

Housing experts say an overbuilding of off-campus options was particularly evident in the higher price brackets, where rents could be above $1,000 a month. Developers had thought by offering amenities like swimming pools and even ice skating rinks they would be able to attract tenants at premium rents. However, for comparison, shared dorm rooms could be as low as $500 a month.

While supply in off-campus housing is abundant, some housing experts say that eventually demand will catch up over time. The Department of Education estimates that there will be 24.1 million full and part-time students attending colleges by 2021 -- up from 21.8 million this year.

Source: “Student Off-Campus Housing Is Back-to-School Bargain,” The Wall Street Journal (Aug. 27, 2013) (may require account)

http://realtormag.realtor.org/daily-news/2013/08/28/back-school-housing-bargains-abound

Monday, August 26, 2013

FHA Has Changed The Rules!

FHA changed the rules, now only 12 months waiting period for BK, Foreclosures, Short Sales. At All Western Mortgage, HUD opens financing for borrowers, call us now.

New FHA rule:

Borrowers are eligible for financing 12 months after BK, Short Sale, Foreclosure, and Deed-in-Lieu*

Old FHA rule:

Borrowers must wait 36 months for financing after BK, Short Sale, Foreclosure, and Deed-in-Lieu

Minimum credit score of 640

Must have 12 months recent clean credit history

Must have minumum 3 months cash reserves from borrowers own funds

Gift funds are allowed

Must be able to document they experienced an "economic event" ie. loss of income of 20% or more for 6 months leading up to the BK, Short Sale, Foreclosure, Deed-in-Lieu*

Borrower must attend Housing Counseling from HUD approved agency, list coming soon

Tuesday, August 20, 2013

Study: Price Home Higher, Get a Better Offer

DAILY REAL ESTATE NEWS | TUESDAY, AUGUST 20, 2013

The higher a home is priced at the outset, the more likely it is that it will get a higher offer from a buyer, according to a new study by researchers Grace Bucchianeri and Julia Minson. The study appeared in the May issue of the Journal of Economic Behavior & Organization. The researchers factored in geographical location and timing of sales in evaluating the pricing strategy of 14,000 real estate transactions.

"A home that is listed 10 to 20 percent higher than other homes in the neighborhood will command an additional increase of 0.05 percent to 0.07 percent in the sale price for each 10 percent increase in the expected price," the study notes.

A popular pricing strategy popular among some real estate professionals is to underprice a home in order to ignite a bidding war. However, the researchers say that this isn't effective because there are seldom enough buyers in a market to create a "herding effect" to increase prices. They found that under-pricing a home could actually lead to a lower sales price.

"Pricing a home 10 percent to 20 percent lower than comparable homes led to a 0.05 percent to 0.08 percent decrease in the expected price," the study notes.

The researchers suggest that first impressions on price have a strong influence on buyers. A buyer may consider a range of prices when house hunting, but they always refer back to the original list price when making a decision.

Critics point out that the study's findings aren’t completely conclusive in determining the best pricing strategy. The researchers evaluated transactions that had an average sales price of $234,000. Given the price variations found in the study, the amounts in final sales prices only ranged from $117 to $187, critics say.

Source: “What is the Correct Way to Price a Listing?” RealtyTimes (Aug. 20, 2013)

http://realtormag.realtor.org/daily-news/2013/08/20/study-price-home-higher-get-better-offer

Friday, August 16, 2013

Housing's Top 10 Turnaround Towns

DAILY REAL ESTATE NEWS | FRIDAY, AUGUST 16, 2013

Which U.S. cities are leading the nation's housing recovery? Realtor.com® has released its second quarter rankings based on indicators such as inventory, median list price, days on the market, and search and listing activity on its site.

Despite its recent filing for bankruptcy, Detroit emerged as No. 7 on the list. The median list prices in Detroit were nearly 38 percent higher for the second quarter than last year at this time, and the market’s median age of inventory was 45 days — the second lowest in the nation.

“Detroit has made remarkable progress in the last year, shrinking its inventory of unsold homes by more than 26 percent and becoming one of the most balanced markets in the nation,” says Steve Berkowitz, CEO of Move. “We’ll be watching the inventory levels in the months ahead, but if this past quarter is any indication, Detroit won’t be giving up without a fight.”

The following are realtor.com®’s top 10 turnaround towns:

1. Oakland, Calif.
Quarterly year-over-year median list price: up 41.3%
Quarterly year-over-year median age of inventory: down 53.1%

2. Orange County, Calif.
Quarterly year-over-year median list price: +29.4%
Quarterly year-over-year median age of inventory: -43.3%

3. Santa Barbara-Santa Maria-Lompoc, Calif.
Quarterly year-over-year median list price: +34.3%
Quarterly year-over-year median age of inventory: -30.9%

4. San Jose, Calif.
Quarterly year-over-year median list price: +25%
Quarterly year-over-year median age of inventory: -64%

5. Seattle-Bellevue-Everett, Wash.
Quarterly year-over-year median list price: +17.2%
Quarterly year-over-year median age of inventory: -55.8%

6. Los Angeles-Long Beach, Calif.
Quarterly year-over-year median list price: +30.3%
Quarterly year-over-year median age of inventory: -27.2%

7. Detroit
Quarterly year-over-year median list price: +37.8%
Quarterly year-over-year median age of inventory: -25%

8. Portland, Ore.-Vancouver, Wash.
Quarterly year-over-year median list price: +12%
Quarterly year-over-year median age of inventory: -45.8%

9. San Diego
Quarterly year-over-year median list price: +21.1%
Quarterly year-over-year median age of inventory:-26.4%

10. Reno, Nev.
Quarterly year-over-year median list price: +26%
Quarterly year-over-year median age of inventory: -32.3%

Source: realtor.com®

Read More

7 Markets Showing Big Home Price Growth

http://realtormag.realtor.org/daily-news/2013/08/16/housings-top-10-turnaround-towns

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Thursday, August 15, 2013

More Buyers Becoming Wary of Short Sales

DAILY REAL ESTATE NEWS | THURSDAY, AUGUST 15, 2013

Home buyers once saw short sales as big bargains, but their appeal has fizzled in some parts of the country — so much so that some real estate professionals are advertising listings as "not a short sale" to attract more buyers.

"'Short sale' does have a stigma now," says Summer Greene, regional manager of Better Homes and Gardens Florida First Real Estate in Fort Lauderdale, Fla. Greene says getting bank approval for a short sale can be difficult, and the process of buying a short sale can take four to six months in her area.

A recent study found that short sales in Boca Raton tended to stay on the market much longer than other homes. And when homes were advertised as "not a short sale," they tended to sell for 2 percent to 5 percent more than comparable non-distressed homes that were not advertised the same way, according to the study. Homes advertised as "not a short sale" also sold faster, according to the study.

"What really caught our eye was there were a lot of people specifically stating, 'We are not a short sale,'" says Ken H. Johnson, the study's co-author and a professor with Florida International University's real estate department. "Not only were [the homes] not a short sale, but they got the extra mile to state that to clearly delineate themselves from the rest. That shouldn’t be happening."

In housing markets where short sales are less prevalent, agents say they aren’t noticing the stigma. Buyers aren't as aware of the lengthy process so they don’t dread it as much. Therefore, singling out a property as “not a short sale” would be pointless, says Diane Saatchi, an associate broker with Saunders and Associates in the Hamptons.

Source: “Is There a Stigma with Home ‘Short Sales?’” CBSNews.com (Aug. 14, 2013)

http://realtormag.realtor.org/daily-news/2013/08/15/more-buyers-becoming-wary-short-sales

Tuesday, August 13, 2013

Slowdown in Home Prices No Reason to Panic?

DAILY REAL ESTATE NEWS | TUESDAY, AUGUST 13, 2013

Though home prices have risen nearly 12 percent from a year ago, a slowdown is expected soon. But many analysts say it’s no cause for concern.

“Prices are still going to rise — just not as at brisk a pace as we’ve seen over the past year,” The Wall Street Journal reports. “This should calm down those pundits who have fretted over a new crop of housing bubbles.”

According to a report by Goldman Sachs economists, home prices will likely moderate because they have returned to “fair value” and are no longer being viewed as “undervalued,” as they were for the past two years. Also, a rise in mortgage rates may cause some buyers to re-evaluate their options.

For the first time this year, buyer traffic dropped below agents’ expectations, and “the next few months will be crucial to determining whether this is just a pause or something more,” the Goldman Sachs report notes.

The report also notes that investors will likely slow their purchases as the number of foreclosures start to dry up. What’s more, the inventory of homes for sale is starting to loosen as more sellers look to put their homes on the market. Those sellers, in turn, will then be looking to purchase another home, so prices will still likely continue to rise until new-home construction catches up.

“With the improving underlying housing demand driven by household formation and economic recovery, we think housing activity will remain on an upward trajectory, despite occasional ups and downs along the way,” says the Goldman report.

Source: “Why Home-Price Growth Will Slow,” The Wall Street Journal (Aug. 12, 2013)

http://realtormag.realtor.org/daily-news/2013/08/13/slowdown-in-home-prices-no-reason-panic

Monday, August 12, 2013

Investors Embrace Risk in High-End Flipping

DAILY REAL ESTATE NEWS | MONDAY, AUGUST 12, 2013

High-end and luxury house flipping is on the rise nationwide. According to RealtyTrac, the number of flipped homes valued at $1 million or more has risen nearly 40 percent across the country since 2011. RealtyTrac defines a home that has been both purchased and sold within six months as a flip.

In some markets, high-end flipping is becoming particularly big business. For example, between 2011 and 2012 alone, luxury house flipping rose a whopping 867 percent in Orlando and was up 456 percent in Phoenix, according to RealtyTrac.

"Flippers are getting more confident that the market is really recovering, and therefore are more willing to go high-end, even though it's more risky," says Daren Blomquist, RealtyTrac’s vice president. He says that refurbished mansions often sell fast via all-cash offers.

For the past few years, investors have been targeting low- to mid-market homes, buying them at bargain prices and turning them into rentals. But with foreclosures falling, that market has nearly “dried up,” says Jan Brzeski, a private money lender running an investment firm in Los Angeles that provides loans to house flippers. As such, more investors are eyeing the high-end market for profits.

However, with more money involved in the purchases, more money is at risk. But for some, it’s been worth it. Brzeski says he purchased a West Hollywood home in 2011 for $1.425 million and poured another $1.175 million in remodeling costs into it. The home fetched multiple, all-cash offers and eventually sold for $3.5 million.

“This was an incredibly profitable project,” Brzeski says. “This really opened my eyes."

Source: “Flip that mansion: Investors see riches in luxury U.S. homes,” Reuters (Aug. 11, 2013)

Read more

Home Flipping Goes High-end

http://realtormag.realtor.org/daily-news/2013/08/12/investors-embrace-risk-in-high-end-flipping

Selling AZ With Rebecca