Home prices in largest U.S. cities fall in October from September

Home prices in the nation's largest cities fell in October for the second straight month, suggesting that prices will head down further next year and dashing hopes that the sluggish housing market was headed for an upturn.

The Standard & Poor's/Case-Shiller index, a measure closely followed by economists, showed price drops in 19 of 20 cities since September. Overall, the price index slipped 1.2% month over month and fell 3.4% compared with October 2010.

The decline is typical of the season, when home buyers back off after the busy summer period. But coming off five straight months of increases through August, the retreating prices in the fall suggest that weakness in the market may stretch into 2012.

Atlanta was on particularly shaky ground, according to Case-Shiller data. The price index there declined 5% in October after falling 5.9% in September and was down 11.7% over the last 12 months. Atlanta, Cleveland, Detroit and Las Vegas had average prices that were lower than they were in January 2000.

In Los Angeles, the Case-Shiller index recorded a monthly decline of 1.5% in October after sliding 0.8% in September. Year over year, L.A. prices are down 4.9%, as measured by the index.

San Diego fell 0.6% from September and was down 4.5% from October 2010. In San Francisco the pattern was almost the same, with the price index off 0.7% from September and down 4.7% from a year earlier.

"In the October data, the only good news is some improvement in the annual rates of change in home prices," said David M. Blitzer, chairman of the index committee at Standard & Poor's. In 14 of the 20 cities tracked, the rate of the annual decline in home prices slowed.

Home prices appeared to be stabilizing earlier this year, but that may have been an illusion produced by a temporary reduction in foreclosures, economist Patrick Newport of consulting firm IHS Global Insight said in a research note. The foreclosure pipeline was slowed after media reports that some lenders cut corners when processing their foreclosures.

More than 6 million homeowners — 12.6% of the homeowners with mortgages — were either delinquent on their payments or in foreclosure at the end of the third quarter, the Mortgage Bankers Assn. said. About 22% of residential properties with mortgages were underwater at the end of the third quarter, meaning that the homeowners owed more on their loans than the properties were worth, according to CoreLogic data.

"Add to this the currently high unemployment and underemployment rates, one gets a recipe for further price declines," Newport said in a research note. "Our view is that foreclosures, excess supply and weak demand will drive prices down another 5% to 10%."

Should the economy slip into a recession, the unemployment rate will climb, driving foreclosures up and leading to an even larger drop in home prices, Newport said. He rated the chance of another recession a 35% probability.

The Case-Shiller index, created by economists Karl E. Case and Robert J. Shiller, is widely considered the most reliable read on home values. The housing index compares the latest sales of detached houses with previous sales and accounts for factors such as remodeling that might affect a house's sale price over time.

The index also provides seasonally adjusted data. S&P has warned that the adjusted data are unreliable because the high number of distressed properties has distorted the market.

The Case-Shiller data cast a pall on recent, more promising market feedback. Last week, the Commerce Department said construction of new homes and apartments was up 9.3% last month from October and up 20.1% compared with November 2010.

Home sales in California were up 4% in November compared with the same month a year earlier, though they fell 4.2% from October, according to real estate research firm DataQuick. The median home price in the state in November was $244,000, down 4.3% from a year earlier but up 1.7% from October, the report found.

Source: http://www.latimes.com/business/realestate/la-fi-housing-prices-20111228,0,541656.story

UK Tax Rules Draw Property Investors

LONDON – London’s reputation as an international metropolitan center brought swarms of overseas investors to the city in 2011 in the search for real estate, but the use of overseas companies has allowed the buyers to skip out on nearly GBP 750 in taxes for the purchase.

In 2011 foreign residents purchased GBP 4.3 billion worth of real estate in the city of London, and the current tax rules in the UK meant that the properties were levied at a reduced tax rate, costing the HM Revenue and Customs over GBP 750 million in lost tax revenues. Under current regulations, properties worth over GBP 1 million which are purchased by a foreign company are only subject to a 0.5 percent stamp duty, compared to the regular stamp duty rate of 5 percent.

According to experts, more than 65 percent of all properties available in London in 2011 were purchased by overseas residents, who were mainly from the Middle East or countries of the former Soviet Union. London’s popularity as an investment destination has been attributed to the simplicity of the UK’s regulations for purchasing property, and the current rules which allow real estate to be held anonymously by companies registered in offshore jurisdictions.

According to estimates published by the British press, nearly 9000 new homes and apartments are being built over the next 9 years in order to meet the current demand for new property investments.

Source: http://www.taxationinfonews.com/2011/12/uk-tax-rules-draw-property-investors/

Real estate bill is against consumer interest

It is common knowledge that most builders blatantly engage in various malpractices-be it delay in construction, use of substandard materials, deviation from sanctioned plans, failure to obtain the occupation certificate, avoiding the formation of a co-operative society, illegal sale of parking and other open areas, misappropriation of advance monies taken for maintenance etc. Flat purchasers are always at the receiving end, with builders flouting the provisions of the Maharashtra Ownership Flats Act. The only viable, time-tested and effective remedy available to a flat purchaser to fight the might of the builder was through the redressal mechanism provided under the Consumer Protection Act.

Will consumers get better protection with the introduction of the real estate (regulation & development) bill by the ministry of housing and urban poverty alleviation? Though this new legislation appears to project a rosy picture, an analysis of the various provisions will show that in reality it will be beneficial to builders at the cost of the flat purchasers.

Under Section 2 (c) of the new law, by a legal fiction, opens spaces are included under the definition of "apartment". Once the bill is passed, builders will be legally entitled to sell the open spaces (like parking space, terrace and private garden) for independent and private use. At present, as per the interpretation of law by the Supreme Court, sale of open spaces by a builder is illegal, as the land and other open spaces would belong to the society. The new law will help builders overcome this well reasoned judgment and profiteer by selling the open spaces.

Section 3 of the bill provides that a builder must compulsorily be registered with the real estate regulatory authority for plots measuring 4000 sq. metres or more. Most of the buildings are constructed on smaller plots. Hence this provision will not be applicable to most builders.

Section 18 of the bill provides for establishment of the real estate regulatory authority comprising of one chairperson and two members. There law does not mandate the appointment of any judicial officer on the authority. So, given the way our country functions, the appointments may be made to favour persons with the "right connections". The composition of the authority and its strength of three members will be inadequate to cope with the construction and development projects being carried out throughout the country. Also, it would be difficult for the common man to approach a remote centralized authority.

Similarly, the real estate appellate tribunal comprising nine members, to be constituted under section 35, will be unable to set up Benches throughout the country to deal with disputes. Accessibility to the redressal mechanism will become more difficult and costly.

Section 46 provides that the order of the tribunal can be enforced like the decree of a civil court. This proceeding is lengthy, cumbersome and costly. Unlike the consumer fora, the authority or tribunal under the new bill does not have power to adopt penal proceedings/criminal prosecution for non- compliance. Such proceedings would have to be initiated by the authority or tribunal by filing a complaint before a criminal court, and the flat purchaser would not have any idea about what is happening in such pro-ceedings.

Section 47 provides that the decision of the appellate authority would have to be challenged before the Supreme Court. The quality of adjudication by the authority with no judicial member would be questionable. The rates of appeal would be high. The cost involved would also be high. The tribunal would not be easily accessible to the common man. The three-tier redressal system under the Consumer Protection Act would be much more effective and economical.

The most anti-consumer provision of the new law is Section 60, which states that no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act. The new law, thus, takes away the alternative, efficacious remedy which was hitherto available to a flat purchaser under the Consumer Protection Act.

Source: http://timesofindia.indiatimes.com/city/mumbai/Real-estate-bill-is-against-consumer-interest/articleshow/11248135.cms

How To Get Profit In Real Estate Flipping?

Profit is the obvious benefit and sought after benefit of flipping real estate, if you are still learning how to buy a home then flipping is not for you. This is one incredibly tangible benefit, particularly when the profits are large and quick to come on your way. Of course there are some risks. Most ventures that offer high profit also come with a high degree of risk. Flipping real estate any market will require you to become familiar with that market the Santa Maria real estate market differs from the Detroit market for example.

Let us talk about profit first. Profit is one reason that most people get into this business. A long day and a hard work is definitely not the type of work one would ordinarily undertake for the simple love of getting one’s hands dirty. This is real work that leaves you bone weary at the end of the day. However, when all the work is done and you get around to making the sell, you will find that the profit involved in a successful flip is well worth the effort you’ve put into the process.

The good news is that the savvy investor can still manage to make money even when the situation may not work out quite as planned. This is yet another benefit to flipping real estate. If the flip doesn’t work out, there is always the option of leasing to own the property or renting out the property. The profits in these situations are considerable less than a straight out flip but it can prevent financial ruin that is often the risk of a flip gone wrong. The fact that there are options and that you aren’t necessarily left ruined at the end of a bad flip is definitely a benefit. There aren’t many types of investments that allow you the option to save yourself the way real estate does.

One of the intangible benefits of flipping houses is that you are in essence working for yourself. In other words you do not have to punch a time clock or worry about overtime (at least not on your part). This can be a bad thing too if you lack the discipline required to get the job done. However, most of us will view this as a huge check in the pros column when deciding whether or not to take the plunge into the wonderful and frightening world of real estate investing.

Even though this is a business that requires a lot of work in order to turn an attractive profit, there is some satisfaction at the end of the day involved in knowing that you are working for yourself and not to make someone else wealthy or in order to punch a time clock. That feeling of satisfaction is one that you should hang onto when the brand new toilet you’ve just installed becomes a geyser. Of course there are mistakes along the way, what other job keeps you on your toes quite like this one?

Real estate investing, house flipping in particular, can be one of the most frustrating types of investments one can pursue. But many have made tons of money by flipping homes in Santa Maria and at the same time it can also be one of the most rewarding mentally, spiritually, and financially. This is something you should keep in mind when deciding whether or not this is the right path for you. Just be sure to be that hard-working one to earn a good profit, if you are diligent enough, you will get your target and surely you will have a good profit which will pay all your efforts for the hard work.

Source: http://southjerseyrealestateagent.com/?p=8148

Fairfax Media buys 50% of Melbourne real estate rival for $35 million: Midday roundup

Fairfax Media will pay $35 million for a 50% stake in a rival Melbourne real estate publication set up by a former Age staffer just last year.

Under the widely anticipated deal, Metro Media Publishing will house both its assets and that of Fairfax Community Newspapers in Victoria.

Antony Catalano, who founded Metro Media Publishing last year after a long career with the Melbourne broadsheet, will lead the bulked-up group.

Catalano launched The Weekly Review in April 2010 in partnership with a number of real estate agencies after serving out a non-compete period following his departure from the position of advertising director at The Age.

The glossy magazine took about $20 million in real estate advertising from Fairfax when it started being distributed to home owners in Melbourne’s wealthy eastern suburbs.

Fairfax acquired 50% of MMP by purchasing equity stakes from some existing MMP shareholders.

Catalano has a private stake alongside real estate agents – Kay & Burton, Jellis Craig, Marshall White and Bennison Mackinnon, plus several others.

The deal is subject to ACCC approval.

Dick Smith faces investigation over shonky hard drive sale

Electronics chain Dick Smith could face fines and compensation claims if it is found to have misled consumers about their goods and services, after a storm over a customer buying what he believed to be a new disc drive only to find it held malware-infested pirated films.

Questions are now being raised about whether the sale of second-hand electronic goods is more commonplace than expected, with consumers complaining on tech sites and Twitter about the purchase of “new” products which were in fact second-hand.

According to reports, the Fair Trading Commission is set to conduct a formal investigation into whether the practice is “widespread and systemic” and says retailers who mislead customers about the nature of goods could face fines of up $1.1 million per offence.

The Australian Competition and Consumer Commissioner said it couldn’t “confirm or deny any correspondence that we’ve had with Fair Trading.”

Dick Smith told Fairfax the sale of the used good was a one-off.

The Australian sharemarket up in early trade, but to close year down 600 points

The Australian sharemarket is up almost 1% in early trade, on the back of positive leads, but is set to end the year well down.

At just before 11pm in the last trading day before Christmas, the S&P/ASX 2000 was up 0.94% to 4129.2 and the All Ordinaries index was up 0.89% to 4179.0.

This means it will be down almost 600 points or more than 13% through 2011.

Overnight, Wall St rose on positive employment data. The S&P 500 Index was up 0.83%.

Over the year, the US market is down 1.3%.

Source: http://www.smartcompany.com.au/advertising-and-marketing/20111223-fairfax-media-buys-50-of-melbourne-real-estate-rival-for-35-million-midday-roundup.html

Miami Real Estate Market Continues Winning Streak in November, Prices Rise Fourth Consecutive Month

(MIAMI, FL) -- Today the Miami Association of Realtors reported that sales of existing single-family homes in the Miami Metropolitan Statistical Area (MSA) rose 11 percent in November, from 679 to 755, compared to November 2010. Sales of existing condominiums increased 2 percent, from 1,039 to 1,064, compared to November 2010.

Statewide sales increased 11 percent to 12,993 for single-family homes and two percent to 5,590 for condominiums compared to November 2010. Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops rose four percent from the previous month and were 12.2 percent above November 2010, according to the National Association of Realtors (NAR).

"Residential real estate sales have consistently risen in Miami-Dade since August 2008," said Jack H. Levine, 2011 Chairman of the Board of the Miami Association of Realtors. "Now, after the relatively rapid absorption of excess housing inventory, we are seeing property prices follow the same pattern. This is very encouraging and reflects market strengthening despite the impediments posed by unnecessary and restrictive mortgage underwriting standards and appraisal challenges."

International Buyers Fuel Cash Transactions

The percentage of cash transactions remained the same at 64 percent, compared to the previous month. Cash sales accounted for 41 percent of single-family and 79 percent of condominium closings. Nearly 90 percent of international buyers in Florida purchase properties all cash. Nationally, all-cash sales accounted for 28 percent of transactions, reflecting the stronger presence of international buyers in the Miami real estate market.

Condominium Prices Rise Again

The effect of short sales and foreclosures on the median and average sales prices for both single-family homes and condominiums has lessened particularly in some areas of the county. In November, 56 percent of all closed residential sales in Miami-Dade County were distressed, including REOs (bank-owned properties) and short sales, compared to 62 percent in November 2010 and 57 percent the previous month.

In November, the median sales price for condominiums rose for the fourth consecutive month. The median sales price of condominiums in November increased 18 percent to $125,000. The median sales price of single-family homes remained the same at $171,300 compared to a year earlier.

"The Miami residential real estate market continues to perform in a healthy and balanced manner, said 2011 Miami Association of Realtors Residential President Ralph E. De Martino. "International buyers in Miami have fueled an unprecedented recovery unlike any other in the nation, increasing demand and limiting supply of homes. We are fortunate because Miami combines all of the attributes that are expected to attract international buyers long into the future."

Statewide median sales prices remained the same at $130,100 for single-family homes and increased four percent to $86,700 for condominiums. The national median existing-home price for all housing types was $164,200 in November, down 3.5 percent from November 2010.

The average sales prices for single-family homes in Miami-Dade County increased 8.2 percent, from $300,369 in November 2010 to $324,846 in November 2011. The average sales price for condominiums increased 21.5 percent, from $193,486 in November 2010 to $226,151 last month.

Inventory Drops 40 Percent in Last Year

The inventory of residential listings in Miami-Dade County has dropped 40 percent, from 24,278 to 14,461 active listings, in the last year. Compared to the previous month, the total inventory of homes dropped 4.4 percent from 15,127. Since August 2008, existing housing inventory has decreased more than 66 percent, down from 43,100.

Total housing inventory nationally fell 5.8 percent to 2.58 million at the end of November compared to the previous month.

Source: http://www.worldpropertychannel.com/north-america-residential-news/miami-home-sales-miami-condo-sales-miami-association-of-realtors-international-real-estate-investors-in-miami-cash-transactions-cash-sales-in-miami-national-association-of-realtors-nar-5112.php

Inland Diversified Real Estate Trust, Inc. Announces August 2012 Close of Offering

OAK BROOK, Ill., Dec 20, 2011 (BUSINESS WIRE) -- Inland Diversified Real Estate Trust, Inc. ("Inland Diversified") has announced that it will close its current "best efforts" public offering to new investors on August 23, 2012.

Inland Diversified presently is offering up to 500,000,000 shares of its common stock for sale at $10.00 per share and up to an additional 50,000,000 shares of its common stock for issuance under its distribution reinvestment plan at $9.50 per share. Inland Diversified intends to use the proceeds from this offering primarily to acquire a diversified portfolio of commercial real estate. Inland Securities Corporation is the managing broker dealer for the "best efforts" offering.

Inland Diversified, a non-traded real estate investment trust (REIT), focuses on acquiring a diversified portfolio of commercial real estate assets. Inland Diversified is designed to take advantage of opportunities in various property categories, including: grocery-anchored shopping centers, necessity-based retail assets, single-tenant office and multi-family assets. Inland Diversified is not limited to investing in a single asset class.

A copy of the final prospectus for Inland Diversified's offering is available upon written request addressed to Inland Securities Corporation, 2901 Butterfield Road, Oak Brook, Illinois, 60523. The prospectus may also be obtained at the SEC's website at: www.sec.gov , or at the Inland Diversified website at: www.inlanddiversified.com .

About Inland Diversified Real Estate Trust, Inc.

Inland Diversified Real Estate Trust, Inc. ("Inland Diversified") is a public, non-listed real estate investment trust (REIT) that focuses on acquiring and developing a diversified portfolio of commercial real estate. For additional information, please refer to Inland Diversified's website at www.inlanddiversified.com .

This press release may contain forward-looking statements. Forward-looking statements are statements that are not historical, including statements regarding management's intentions, beliefs, expectations, representations, plans or predictions of the future, and are typically identified by such words as "believe," "expect," "anticipate," "intend," "estimate," "may," "will," "should" and "could." We intend that such forward-looking statements be subject to the safe harbor provisions created by Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward looking statements involve numerous risks and uncertainties that could cause actual results to be materially different from those set forth in the forward looking statements.

This is neither an offer to sell nor the solicitation of an offer to buy any security, which can be made only by the prospectus which has been filed or registered with appropriate state and federal regulatory agencies, nor will there be any sale of securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. No regulatory agency has passed on or endorsed the merits of this offering. Any representation to the contrary is unlawful.

SOURCE: Inland Diversified Real Estate Trust, Inc.