Price Jumps Are Leading to More House Flips

DAILY REAL ESTATE NEWS | TUESDAY, APRIL 21, 2015

More investors are flipping properties again, a trend that started last year and is building momentum across the country, according to Auction.com's First Quarter 2015 Real Estate Investor Activity Report.

Read more: Where the House Flippers Are: 10 Markets

Investors lately are showing more interest in purchasing a home to flip than renting it out. In fact there was a 6.5 percent quarter-over-quarter increase in favor of flipping in the first quarter of 2015.

"It seems clear that the unusually low inventory of homes for sale has led to higher home prices, which makes it challenging for investors to rent homes out at a rate that’s profitable, and still affordable for tenants," says Rick Sharga, Auction.com's executive vice president. "So in states like California, Washington, Nevada, and Arizona a large number of investors have decided that the best opportunity today is to meet the demand of prospective home owners by buying, fixing, and re-selling investment properties."

Survey respondents indicated a preference toward flipping over a rent-to-hold strategy in every state Auction.com conducts live auction events. The West and Midwest had the largest margins of investors favoring flipping over renting. The five states that had some of the largest numbers of investors in favor of flipping over renting were Nevada, California, Washington, Idaho, and North Carolina.

However, the preference depends on investor profile, Auction.com’s survey found. Survey respondents who said they were making a one-time purchase still tended to prefer a hold-to-rent strategy. On the other hand, survey respondents who identified themselves as full-time “real estate investors” and those who work on behalf of another investor showed a preference toward flipping.

Source: Auction.com

http://realtormag.realtor.org/daily-news/2015/04/21/price-jumps-are-leading-more-house-flips

www.KallhoffTeam.com

Successful Cities Invest in Technology, Energy

DAILY REAL ESTATE NEWS | THURSDAY, FEBRUARY 12, 2015

Smart investments in energy and innovation earn San Francisco, CA and Austin, TX the distiction of being named the Best-Performing Cities in America by the Milken Institute.

Dynamic Cities

6 Cities Where Incomes Are Rising Most

10 Best Bets for Housing in 2015

The Milken Insitute ranked 379 metro areas to help businesses, investors, government officials, and public-policy groups track and evaluate the performance of metros where they do business relative to the rest of the country. In the 2014 index, the they weighed nine factors, including  job, wage, and technology trends, with a heavy emphasis on growth in jobs creation and retention and the overall quality of new jobs.

What made these cities better equipped to weather the recent economic downturn was their ability to "offset high costs, an unfavorable tax structure, and a burdensome regulatory environment thanks to the clustering of talent and technology in an entrepreneurial ecosystem. The two main factors driving the success of these metros is technology and shale energy production.

"Technological advances in horizontal drilling and hydraulic fracturing are altering the energy landscape of the United States," according to the study. "Few experts had anticipated the magnitude of the boom in shale oil and gas exploration and production occurring since 2007. Energy investment has claimed the largest share of GDP since the early 1980s."

Study Highlights

• San Franciso, CA, earned the top spot among large metros, accounting for 45 percent of all jobs created over the five years ending in 2013.
• Five Texas metro areas were ranked in the top 10 list of best-performing cites, due to a combination of tech, energy strength, and a favorable business climate.
• California and Colorado each had four metro areas in the Top 25.
• Technology centers, made up of creative and scientific-based industries represented 13 of the Top 25.
• Seven metros made the Top 25 due to large gains in shale oil and gas exploration, associated infrastructure investment, and related activities.
• Fargo, ND, was No. 1 among small metros, benefitting from the shale oil boom and a diverse makeup of industries.
• West Palm Beach, FL, increased 93 spots and was the city with the overall biggest increase.

Sources: "America's Best Performing Cities Are Invested In Technology And Energy,"  Fast Company (Jan 15, 2015), and "Best Performing Cities," Milken Institute, (Janaury, 2015)

http://realtormag.realtor.org/daily-news/2015/02/12/successful-cities-invest-in-technology-energy

www.rebeccasellsaz.com

5 Markets to Watch for Investors in 2015

DAILY REAL ESTATE NEWS | THURSDAY, OCTOBER 23, 2014

Typical investor magnets like San Francisco, New York City, Boston, and Seattle are getting new competition from some rapidly growing markets. The coastal cities are no longer the top choices for investors: Other markets are stepping in as the ones to watch for 2015, according to Emerging Trends in Real Estate 2015, a report co-published by PwC US and the Urban Land Institute. The report is based on a survey of more than 1,000 leading real estate experts, including investors, fund managers, developers, property companies, lenders, brokers, advisers, and consultants.

Houston and Austin edged out San Francisco for the top spots this year, proving to be the top picks for real estate prospects in 2015. Charlotte, N.C., nabbed a seventh place spot on the ranking list, edging out Seattle and Boston; while Nashville, ranked No. 14, topped Manhattan.

“Investors are looking closely at opportunities beyond the core markets,” says ULI Global Chief Executive Officer Patrick L. Phillips. “These cities are positioning themselves as highly competitive, in terms of livability, employment offerings, and recreational and cultural amenities,”

The report ranked the following five markets as the ones “to watch in 2015”, based on survey respondents and their outlook on each market:

1. Houston: “Investors believe that the energy industry will continue to drive market growth and that will support real estate activity in 2015,” the report notes. “Houston was ranked number one in both investment and development expectations for next year; housing market expectations are ranked number two.”
2. Austin: “Interviewees like the industrial base, the appeal to the millennial generation, and the lower cost of doing business in Austin,” the report notes. “The market was a top choice for both the office sector and the single-family housing sector and the number two ranked market for retail.”
3. San Francisco: Falling from its No. 1 spot last year, survey participants note the city is still poised for growth but other cities are catching up. “The strong local economy and improved domestic and international travel have made San Francisco the number one choice for hotel investment in 2015,” the report notes. “Respondents ranked the office market number three and the retail market number four.”
4. Denver: Proving to be one of the most popular markets with the millennial generation, “Denver’s industry exposure to the technology and energy industries has also attracted investor interest,” according to the report. “The results of the survey put Denver retail at number five and office at number six.”
5. Dallas/Fort Worth: “The market continues to be attractive to real estate investors because of its strong job growth, which benefits from the low cost of living and doing business,” according to the report. “Single-family housing in the market is the highest ranked property sector – and it also has the highest ranked industrial sector (number four) among the top five markets from this year’s survey.”

Source: Urban Land Institute

http://realtormag.realtor.org/daily-news/2014/10/23/5-markets-watch-for-investors-in-2015

www.RebeccaSellsAZ.com

Commercial Sectors Surge on Improved Economy

DAILY REAL ESTATE NEWS | WEDNESDAY, AUGUST 27, 2014

After several false starts, the economy is finally gaining ground, and stronger growth is boosting the outlook for all of the major commercial real estate sectors, according to the National Association of REALTORS®’ quarterly commercial real estate forecast.

A Bright Spot for Commercial

• NAR: Commercial Recovery Slow But Steady
• Big Year Predicted for Commercial Success
• Commercial Market Posts Gains Across the Board

“The job market has been the bright spot of the economy this year, as employers are feeling more confident about their growth prospects and adding to their payrolls,” says Lawrence Yun, NAR’s chief economist. “This gradual turnaround from being overly cautious to more optimistic should slightly boost the demand for leasing and purchase activity as well as new-construction projects in the upcoming year. … The economy can handle the inevitable rise in interest rates as long as commercial rents steadily rise to generate investor returns.”

Here’s an overview of the four major commercial real estate sectors from NAR’s latest quarterly Commercial Real Estate outlook.

Office Markets

Vacancy rates for the office market is expected to remain unchanged at 15.7 percent in the third quarter of 2015. Office rents are forecasted to rise 2.6 percent this year and 3.2 percent next year.

Markets with the lowest office vacancy rates (third quarter 2014): Washington, D.C. (9.3%); New York City (9.6%); Little Rock, Ark. (11.5%); San Francisco (12.4%); and New Orleans (12.7%).

Industrial Markets

The industrial vacancy rate is projected to drop from 8.9 percent in the third quarter of this year to 8.5 percent in the third quarter of 2015. Annual rents are expected to rise 2.4 percent this year and 2.8 percent next year.

Markets with lowest industrial vacancy rates: Orange County, Calif. (3.5%); Los Angeles (3.8%); Seattle (5.9%); Miami (6.1%); and Palm Beach, Fla. (6.6%). 

Retail Markets

The retail vacancy rate is forecasted to fall from 9.8 percent currently to 9.6 percent in the third quarter of 2015. Retail rents are projected to increase 2 percent this year and another 2.4 percent next year.

Markets with the lowest retail vacancy rates: San Francisco (3.5%); Fairfield County, Conn. (3.9%); San Jose, Calif. (4.6%); Long Island, N.Y. (5.2%); and Orange County, Calif. (5.3%).

Multifamily Markets

The apartment rental market is expected to see vacancy rates decline from 4.1 percent today to 4 percent in the third quarter of 2015. (Vacancy rates below 5 percent are considered a landlord’s market, and the high demand often justifies the higher rents.) Average apartment rents are forecasted to increase 4 percent this year as well as in 2015.

“New construction for multifamily housing has picked up in recent months and looks to be alleviating the short supply,” says Yun. “However, the demand for rental housing continues to show strength. As a result, rent growth will outpace broad consumer inflation in upcoming years.”

Markets with lowest multifamily vacancy rates: Orange County, Calif. (2.2%); Providence, R.I. (2.2%); Sacramento, Calif. (2.2%); New Haven, Conn. (2.5%); and Hartford, Conn. (2.5%). 

Source: National Association of REALTORS®

http://realtormag.realtor.org/daily-news/2014/08/27/commercial-sectors-surge-improved-economy

www.RebeccaSellsAZ.com

4 Reasons Why Buyers Should Be Happy

DAILY REAL ESTATE NEWS | MONDAY, JUNE 30, 2014

Home shoppers may find there’s good reason to breathe a sigh of relief this summer, according to the real estate brokerage Redfin. They pointed to higher inventories, fewer bidding wars, and slowing home prices as welcoming signs for home buyers this year.

Find out what buyers want most, region by region.

In particular, home buyers this summer are finding:

1. More options: Inventories of existing-homes are 6 percent higher than year-ago levels—currently representing a 5.6-month supply at the current sales pace, according to May housing data from the National Association of REALTORS®. The higher inventory levels of homes for-sale means that buyers have more choices this summer.
2. Less competition: As inventories rise, buyers also are facing fewer bidding wars. Bidding wars are down by double-digit margins in many markets this year, according to Redfin, which conducts anannual bidding war report. In March, 63.4 percent of offers written by Redfin agents across 19 markets faced competition from other buyers, down from a bidding war peak of 73.4 percent a year prior, according to Redfin’s report.
3. Price rises are slowing: The median existing-home price for all housing types in May was $213,400—a 5.1 percent rise above May 2013, NAR reports. Home prices rose by double-digits last year. In 2013, home prices rose 11.5 percent over 2012, according to NAR. “Home buyers are benefiting from slower price growth due to the much-needed, rising inventory levels seen since the beginning of the year,” Lawrence Yun, NAR’s chief economist.
4. Low borrowing costs: Mortgage rates are averaging about 4.1 percent, less than half the historical average of a 30-year fixed-rate mortgage, which is 8.7 percent, Redfin reports. “For a $500,000 house, this is worth more than $500 a month in mortgage payments,” savings, Redfin notes on its blog.

Source: “4 Reasons Why Homebuyers Can Breathe a Sigh of Relief,” Redfin blog (June 27, 2014)

http://realtormag.realtor.org/daily-news/2014/06/30/4-reasons-why-buyers-should-be-happy

www.RebeccaSellsAZ.com

How Men, Women Differ on Home Buying

DAILY REAL ESTATE NEWS | TUESDAY, NOVEMBER 05, 2013

Men are from Mars, women are from Venus — and that couldn't be more true when it comes to home buying. According to Prudential Real Estate's third-quarter Consumer Outlook Survey, men and women are quite different when it comes to what they value most about home ownership and the process of buying and selling.

Women enjoy the home search more than men, with 87 percent of women versus 77 percent of men saying they like looking at homes, the survey finds. More women associate home ownership with "pride," "accomplishment," or "independence," while men tend to associate it with "control over living space" and "more space for my family."

"As the real estate market strengthens and household formation grows, men and women approach the buying-selling process from different angles," says Earl Lee, president of Prudential Real Estate. "What's most interesting is the dynamic that exists among couples and the role that agents play in balancing couples' real estate objectives."

Agents may often find themselves stuck in the middle, but both sexes say they trust their agent to be the voice of reason and settle any disagreements among couples. Eighty-three percent of survey respondents say their real estate agent was helpful in moderating an agreement, and 86 percent value the agent's point of view as much as — or more than — their partner's, according to the survey. Both sexes cited "honesty" and "knowledgeable" as the most important traits in a real estate agent. 

Men and women tend to take on different responsibilities when it comes to home buying, the survey finds. Men take on more of the financial aspects, while women tended to take the lead on planning aspects, such as neighborhood research. Nearly 40 percent of men said they researched banks and secured the mortgage; 42 percent of women said it was their responsibility to manage appointments, and 34 percent took the lead in researching neighborhoods. 

When it comes to the most important home features, men and women are mostly in agreement. Both genders ranked "safe neighborhood," "overall condition of home," and "number of bedrooms" the highest. 

Source: Prudential Real Estate

Read more:

First-Time Buyers: What Research Tells Us
What Consumers Like About You
What Home Buyers Want Most in Their New Homes

http://realtormag.realtor.org/daily-news/2013/11/05/how-men-women-differ-home-buying

http://www.rebeccasellsaz.com

arizona house, arizona real estate, az houses, az real estate, business, chief economist, economy, for sale by owner, FSBO, gilbert arizona,gilbert az, gilbert real estate,home for sale in arizona,homes for sale in san tan valley az, homes for sale in san tan valley az san tan valley arizona arizona homes sale home for sale in arizona real estate az real estate arizona arizona real estate san tan san tan heights homes in az for sa, homes for sale valley, homes in az for sale,houses for sale, houses in Arizona for sale, how to sell my home, investment, johnson ranch, Market Conditions,Mortgage, Open House, queen creek, queen creek arizona,queen creek az, real estate arizona, real estate az, real-estate, san tan, san tan heights,san tan valley arizona, san tan valley real estate, Selling my home, Selling My House, Selling your house arizona homes sale,short selling my home, valley homes sale, where is san tan valley az

Gov’t Shutdown Pushes Mortgage Rates Down

DAILY REAL ESTATE NEWS | FRIDAY, OCTOBER 04, 2013

As a result of the federal government shutdown and declining consumer confidence, fixed mortgage rates fell for the third consecutive week, Freddie Mac reports, ending at their lowest averages in nearly four months.

Retreating interest rates are generally good news for home buyers, however, the University of Michigan reports that overall consumer sentiment is at its lowest since April.

Freddie Mac reports the following national averages with mortgage rates for the week ending Oct. 3: 

• 30-year fixed-rate mortgages: averaged 4.22 percent, with an average 0.7 point, dropping from last week’s 4.32 percent average. Last year at this time, 30-year rates averaged 3.36 percent. 
• 15-year fixed-rate mortgages: averaged 3.29 percent, with an average 0.7 point, dropping from last week’s 3.37 percent average. Last year at this time, 15-year rates averaged 2.69 percent. 
• 5-year hybrid adjustable-rate mortgages: averaged 3.03 percent, with an average 0.6 point, dropping from last week’s 3.07 percent average. Last year at this time, 5-year ARMs averaged 2.72 percent. 
• 1-year ARMs: averaged 2.63 percent, with an average 0.4 point, holding the same as last week. A year ago at this time, 1-year ARMs averaged 2.57 percent. 

The shutdown is having some impact on federal housing and mortgage programs. The Federal Housing Administration's Office of Single Family Housing is endorsing new loans, however, the IRS is closed and has suspended the processing of all forms, including requests for tax return transcripts. Lenders often require such documentation from mortgage applicants, but some are adopting revised policies during the shutdown that will allow for processing and closings with income verification to follow. Fannie Mae and Freddie Mac have also adopted relaxed provisions on loans requiring a Form 4506T, allowing closings that are subject to tax transcript verification before the GSEs purchase the loans.

A recent Bloomberg survey of professional forecasters suggests that a partial federal shutdown lasting one week would shave 0.1 percentage points off of GDP growth in the fourth quarter and even more if the shutdown lasts longer. IHS Inc. estimates that the shutdown is costing the U.S. roughly $300 million per day in lost output.

Source: NAR, Freddie Mac

Read More

What Does the Government Shutdown Mean for Housing? 

http://realtormag.realtor.org/daily-news/2013/10/04/gov-t-shutdown-pushes-mortgage-rates-down

http://www.rebeccasellsaz.com/

arizona homes sale, arizona house, arizona real estate, az houses, az real estate, business,chief economist, economy, for sale by owner, FSBO, gilbert arizona, gilbert az, gilbert real estate, home for sale in arizona,homes for sale in san tan valley az, homes for sale in san tan valley az san tan valley arizona arizona homes sale home for sale in arizona real estate az real estate arizona arizona real estate san tan san tan heights homes in az for sa, homes for sale valley, homes in az for sale,houses for sale, houses in Arizona for sale, how to sell my home, johnson ranch, queen creek, queen creek arizona,queen creek az, real estate arizona, real estate az, real-estate, san tan, san tan heights,san tan valley arizona, san tan valley real estate, Selling my home, short selling my home,valley homes sale, where is san tan valley az

Will Rising Rates Lead to Buyer Rush?

DAILY REAL ESTATE NEWS | MONDAY, JULY 01, 2013

Mortgage rates soared to a two-year high last week, rising by the largest pace since 1987. Freddie Mac reported the average 30-year fixed-rate mortgage climbed from 3.93 percent to 4.46 percent last week. Some economists are predicting 30-year rates to climb to 4.5 percent and 5 percent over the next 12 months, following the Federal Reserve’s recent announcement that it will soon end a program that has kept interest rates near all-time lows for months. 

Home buyers may be concerned that the rising rates will dampen housing affordability. But economists say that rising rates shouldn’t derail the housing market recovery. 

"Some people might decide to buy a smaller house in a different area, but you won't see a big decline based just on interest rates," says Jay Brinkmann, the Mortgage Bankers Association’s chief economist. "In the past, you would see a rise in homebuying activity with rate increases. People who are on the fence about buying a home get off the fence in a hurry when rates start to go up.”

As rates have edged up recently, pending home sales have moved up too. They rose 6.7 percent in May from April—at the highest rate since late 2006, the National Association of REALTORS® recently reported. 

Analysts also point out that mortgage rates are still low by a historical perspective, even if they do tick up to 5 percent. 

"Anything below 6 percent is historically favorable," says Keith Gumbinger, vice president of HSH, a mortgage data publisher. 

Source: “Mortgage Rates Won't Derail Housing Recovery, Analysts Say,” Investors Business Daily (June 27, 2013)

Read more

Freddie Mac: Rising Mortgage Rates 'Will Not Derail the Recovery'
Mortgage Rates Take Biggest Weekly Leap in 26 Years

http://realtormag.realtor.org/daily-news/2013/07/01/will-rising-rates-lead-buyer-rush

arizona homes sale, arizona house, arizona real estate, az houses, az real estate, business,chief economist, economy, for sale by owner, FSBO, gilbert arizona, gilbert az, gilbert real estate, home for sale in arizona,homes for sale in san tan valley az, homes for sale in san tan valley az san tan valley arizona arizona homes sale home for sale in arizona real estate az real estate arizona arizona real estate san tan san tan heights homes in az for sa, homes for sale valley, homes in az for sale,houses for sale, houses in Arizona for sale, how to sell my home, johnson ranch, queen creek, queen creek arizona,queen creek az, real estate arizona, real estate az, real-estate, san tan, san tan heights,san tan valley arizona, san tan valley real estate, Selling my home, short selling my home,valley homes sale, where is san tan valley az