Suspect in County Real Estate Scam to Enter Plea

A Santa Clara County real estate agent being held on $3 million bail for a fake investment scheme that finangled $1.2 million out of homeowners is scheduled to appear in court Monday.

Jill Marie Silvey, 50, was arrested June 27 on 44 felony fraud charges that took place over a six-year period. Silvey was previously employed by Stevensen & Neal Realtors in Campbell, but was apparently dismissed after just a few months.

Most of the victims identified so far are from San Jose, but others reportedly live in Saratoga, Morgan Hill, Sacramento and Redding. Silvey’s charges also include elder counts because several of her victims are at least 65 years old, according to Santa Clara County Deputy District Attorney Paul Colin.

The scheme, which began in 2005, reportedly collapsed toward the end of 2011 after two victims attempted to contact their supposed borrowers—and then Silvey—to reclaim a tardy payment. After futile attempts, the couple reportedly contacted the county’s Real Estate Fraud unit, Colin states in a prepared report.

The fraud unit pursued an investigation, which reportedly “uncovered a dozen other victims with bogus loans.”

“Prosecutors allege that Silvey convinced at least 13 different ‘investors’ to lend their money to homeowners in return for monthly interest payments,” Colin states. “The loan was supposedly secured by the homes. Investigators believe the homeowners knew nothing of the loans, and [that] Silvey forged their signatures. She paid back some investors with other investors’ money.”

The fraud unit’s investigation also revealed that Silvey finagled a $400,000 loan from a couple by falsely promising her home as collateral, Colin states.

Investigators suspect that the finagled funds were used to keep the Ponzi scheme afloat, as well as to buy “such luxuries as high-end vehicles, home furnishings, clothing and an expensive home remodeling project.”

A Ponzi scheme is a fraudulent investment operation where investors are paid their own money from the initial investment or the money of other victims. The victims believe the money is generated from their investment with a person or organization, according to the U.S. Securities and Exchange Commission.

Silvey is scheduled to enter a plea at 2 p.m. Monday, Aug. 6, in department 23 at the Hall of Justice in San Jose.

“If convicted of all charges, she faces a sentence of up to 31 years,” Colin states.

Anyone with information regarding the Ponzi scheme is asked to contact Santa Clara County District Attorney Investigator Jodi Thomas at 408-792-2928.

How Homeowners Can Avoid Scams

Individuals who are considering an investment need verifications and safeguards, Colin states, “even when they are dealing with people they trust.”

Below are some tips detailing safe investment procedures, courtesy of Colin.

Experts say they don’t offer or accept cash payments for real estate investments. Use an escrow company to transfer your money to the borrower and make sure you get a recorded deed of trust.

Title insurance should confirm that the borrower actually owns the property and if there are any existing liens against the property.

A licensed appraiser should report if the property is actually worth enough to protect your investment.

Source: http://cupertino.patch.com/articles/suspect-in-county-real-estate-scam-to-enter-plea

Real estate market up good news for developers and sellers

FORT MYERS, Fla- "We cleared the job and when we got to the front by Iona road everyone was slowing down asking what was going on," said Conidaris builder Skip Walker. It doesn't look like much now, but builders say this old tree farm will be transformed into a residential development made up of condos and single family homes-a total of 135 units. Even though completion is two years away, buyers are already asking how they can get a piece of the pie. Walker said, "I did three projects myself within a half of mile and they completely sold out."

The renewed interest in real estate is part of a larger nationwide trend. Florida Realtors say sales of single family homes are up 5.3% compared to this time last year.

Market America Realty said sellers are listing their homes for more money these days-simply because they can. However, some question if that will eventually hurt the market. Market America's Gregg Fous does not think so, "In July of 2011 we sold a house in Cape Coral for $89k and now we are listing it for $119k That is the sweet spot of the market price-wise meaning the volume of the market."

Home prices in our area are expected to go up from here during the next tweleve months if employment numbers stay steady or rise.

Source: http://www.winknews.com/Local-Florida/2012-07-24/Real-estate-market-up-good-news-for-developers-and-sellers

Real estate market shows recovery signs

Home buyers are expected to become more active over the next three years as conditions in the property market improve, a report says.

The Residential Property Prospects, 2012 to 2015 report from economic forecaster BIS Shrapnel says NSW and the resource-rich states of Queensland, Western Australia and the Northern Territory are already showing signs of recovery.

However, the rest of the country - Victoria, South Australia, Tasmania and the Australian Capital Territory - will lag behind because of what the report says is an emerging excess of housing.

BIS Shrapnel senior manager Angie Zigomanis said the number of first-home buyers in the market, which fell after the temporary boost to the federal government's first-home owners' grant ended, were slowly returning to normal levels.

Mr Zigomanis said lower interest rates and more overseas migrants coming to live in Australia were also indications that some of the negative factors that pushed house prices down in 2010 and 2011 were beginning to turn around.

"The recovery is expected to eventually gain traction through 2013 as continued growth in resource investment spending eventually flows through to other sectors of the economy," Mr Zigomanis said in a statement.

"With the local economic and employment outlook becoming more positive, and some stabilisation and improvement overseas, purchasers are forecast to wade back into the market in greater numbers, translating to greater sales volumes and a pick-up in price growth over 2013/14 and into 2014/15."

Perth and Brisbane were forecast to record the highest growth in median house prices over the next three years at 22 per cent and 20 per cent respectively, with Sydney just behind at 17 per cent and Darwin at 15 per cent.

This compared with a forecast nine per cent increase for Adelaide, five per cent for Hobart, three per cent for Melbourne, and just one per cent for Canberra.

Source: http://au.news.yahoo.com/thewest/business/a/-/national/14029272/real-estate-market-shows-recovery-signs/

Denver-based ReMax chief sees strong real estate recovery

The residential real estate market is rebounding strongly and is poised to grow despite about 4 million home foreclosures that are yet to come, the chief executive of ReMax said Friday.

"You're going to see an excellent housing recovery," Margaret Kelly, head of the Denver-based real estate giant, said during a speech to the National Association of Real Estate Editors in Denver. "We are poised beautifully for home values to go up." Kelly pointed to the ReMax survey of 53 real estate markets for evidence. In 48 markets housing sales were up annually, and in 46 markets home values increased annually.

She added the recovery looks good when you add low monthly inventories of homes and favorable interest to the sales and pricing figures.

"As we start to see the increase of prices and sales, a lot of people waiting on the sidelines will jump into the market," Kelly said. "All in all we're in a recovery and it's a good recovery."

About 4 million foreclosures still need to go through the housing market, Kelly said, but consumers are better educated and the industry better prepared to deal with them. "The four million to go though will not stop the housing recovery," Kelly said. The Denver Post reported Wednesday that Colorado faces a potential new wave of foreclosures as banks prepare new filings. Low prices and a recently settled federal lawsuit targeting banks' foreclosure practices may have prompted lenders to hold back on new filings.

Multi-family real estate also is on the upswing, said Mark Obrinsky, chief economist at the National Multi Housing Council.

"Things are good," said Obrinsky. "There is a greater propensity to rent today than five years ago, for all age groups."

He added that there is still a lot of room for growth in multi-family real estate. In the top 50 markets only two-thirds of the market have reached their peak level in rent, he said. When that number is adjusted for inflation it becomes one-fifth. Obrinsky was on a panel with Terry Considine, chief executive of apartment operation company AIMCO, and Adam Fruitbine, Managing director of Alliance Residential Co.

They acknowledged that a few Americans currently renting might be waiting for better economic times before buying a house, but that shouldn't stop the multi-family side from growing.

"In my experience they are very separate products," Considine said. "Even in the suburbs, most apartment customers don't want the burden and responsibility of ownership."

Little new supply is coming into the market. Even with demand increasing, it will be awhile before that supply can be built.

"The increase in demand is currently outpacing the supply," Obrinsky said. If that's the case, then it will keep pushing rent up."

Kevin C Keller: 303-954-5224 or kkeller@denverpost.com

Source: http://www.denverpost.com/breakingnews/ci_20918468/denver-based-remax-chief-sees-strong-real-estate

Local real estate market starts to balance out

After years of a sluggish real estate market, things are picking up in the Capital Region.

Home sales and home prices are on the rise, indicating what was once a buyers market, is starting to balance out.

For the first time in a long time, neither the buyer nor the seller has an overwhelming advantage, which means there are a lot of homes on the market and a lot of buyers looking.

So, when it comes to the market, whether you're planning to buy or sell, local real estate agent Debbie Bucher says, “Oh gosh, now is the best time to do it.”

Bucher has been in the real estate business for abut 25 years and says this is the best market she's ever seen.

“Everything has come together like a little puzzle piece,” she said.

According to the Greater Capital Association of Realtors, pending home sales increased 16 percent from this time last year, and the average home price has also jumped.

“You have the low interest rates 3.75 for both FHA and conventional,” Bucher said. “You are also looking at plenty of homes on the market and you're looking at a great spring market where the houses show very well.”

East Greenbush resident Larry Robetoy is in the business of flipping homes.

He buys fixer-uppers, remodels them, and then puts them on the market.

“It’s been phenomenal actually,” he said.

Robetoy sold one home last week, closed on another, and has another that will be ready for sale in a few weeks.

“The minute I get them done, I put them on the market, and within usually a week they're sold,” he said.

After years of a sluggish market, experts finally say it's turned around, thanks, in large part, to those historically low interest rates, and growing consumer confidence.

“They're not believing the economy is that bad anymore,” Robetoy said. “They're not listening to all the hype and actually saying, ‘I have same amount of money, I am going to buy a house now.’”

The weather has played a huge role in the market turnaround.

The mild winter has been great for buyers to go out looking, and great for sellers to keep their properties looking attractive.

Bottom line: whether you're looking to buy or sell, do it now.

Source: http://www.fox23news.com/news/local/story/Local-real-estate-market-starts-to-balance-out/h-ZFL1L00EuvC0Z4AzMw_Q.cspx

Real Estate Sales, Prices Show Uptick in Most Arlington ZIP Codes in April

Among Arlington ZIP codes, the following real estate sales figures for April were reported by RealEstate Business Intelligence, showing increases in sales across most of the county.

The relatively low numbers of sales per month in individual ZIP codes across the county leads to larger swings than is seen in the countywide home-sales report.

22201: Sales for April totaled 44, up from 39 a year before. The average sales price of $651,863 was up 11 percent from a year before, and the median sales price of $577,000 was up 2.1 percent. Homes that sold in April spent an average of 42 days between listing and ratified contract, up from 34 days for homes that sold a year before.

22202: Sales totaled 12, down from 13. The average sales price of $493-458 was down 17.8 percent, while the median sales price of $457,500 was down 9.4 percent. Homes spent an average of 60 days on the market, down from 125.

22203: Sales totaled 23, up from 18. The average sales price of $476,785 was up 34.5 percent, while the median sales price of $500,000 was up 32.6 percent. Homes spent an average of 61 days on the market, down from 122.

22204: Sales totaled 39, up from 34. The average sales price of $407,182 was up 9.5 percent, while the median sales price of $395,000 was up 12.9 percent. Homes spent an average of 86 days on the market, down from 98.

22205: Sales totaled 28, up from 14. The average sales price of $734,279 was down 0.6 percent, while the median sales price of $688,705 was up 1 percent. Homes spent an average of 54 days on the market, up from 43.

22206: Sales totaled 29, down from 37. The average sales price of $364,162 was down 3.7 percent, while the median sales price of $375,000 was up 0.7 percent. Homes spent an average of 50 days on the market, up from 45.

22207: Sales totaled 49, up from 37. The average sales price of $786,814 was up 12.7 percent, while the median sales price of $751,000 was up 10.9 percent. Homes spent an average of 52 days on the market, down from 92.

22209: Sales totaled 18, unchanged from a year before. The average sales price of $803,125 was up 70 percent, while the median sales price of $729,900 was up 126.3 percent. Homes spent an average of 103 days on the market, up from 55.

22213: Sales totaled three, up from two. The average sales price of $875,300 was up 50.4 percent, while the median sales price of $645,900 was up 11 percent. Homes spent an average of 18 days on the market, up from 16.

Figures represent most, but not all, homes on the market. Figures are preliminary, and are subject to revision.

Source: http://www.sungazette.net/arlington/news/real-estate-sales-prices-show-uptick-in-most-arlington-zip/article_e4d6245e-9cec-11e1-a33e-001a4bcf887a.html

Red hot real estate market helped with city budget surplus

Toronto's red hot real estate market, city staff attrition and high-performing investments have all added up to a budget surplus that's almost double what Toronto City Council was led to expect when it set the city's 2012 operating and capital budget.

In total, Toronto's surplus sits at $292 million, according to a report to the city's budget committee next week. In January, council approved a budget that had just $154 million anticipated surpluses.

At the time, councillors opposing Mayor Rob Ford's budget said they suspected the surplus would be larger given the city's booming real estate market.

As it turned out, heavy trading in real estate had a lot to do with the surplus. The Land Transfer Tax, which Ford has pledged to cut, raised an additional $98 million. The city saved $80 million from a hiring slowdown. The TTC's ridership grew higher than expected, bringing in another $19.481 million from the fare box.

And the city's investment strategies meant a drop in debt servicing costs to the tune of $21.304 million and an increase in investment earnings of $22.108 million.

The money should, according to staff, mostly go towards paying for Toronto's new streetcar order and other TTC capital costs, with a quarter of it going toward operating budget issues.

Mayor Ford, who as a councillor was highly critical of surpluses run by his predecessor David Miller, said that this one was a result of sound fiscal management.

"That's how we found the $140 million," said Ford. "It's straightening the ship. This tax-and-spend mentality of the previous administration is over. People know I mean business; I was elected to find efficiencies and that's what I've done."

The late-in-the-year revelation of a higher-than-expected surplus has become an annual affair. In the last year of his mandate, Mayor David Miller boasted about a $367 million surplus (resulting from many of the same factors: fiscal restraint, strong investments and a robust real estate market).

In the face of this surplus, Ford has suggested in a memo to senior staff that the city should only be raising property taxes as a last resort and should be aiming for tax freezes in the last two years of his mandate.

Councillors who have opposed Ford in the past say that he would have little chance of getting such an agenda through.

"We saw what happened in the year that the mayor insisted on and pushed through a tax freeze," said Beaches-East York Councillor Janet Davis. "We fell behind. The city needs a long term tax plan that includes finding efficiencies but we have to ensure we have the revenues that we need."

Don Valley East Councillor Shelley Carroll said that the city needs to pay attention to the consistency with which budgets have shown a surplus.

"A city should have a surplus when they finish their financial statement, however we're now in the magnitude of $300 million on a regular basis, because we're not accurately projecting land transfer tax revenues, which means we're not letting council and the community weigh in on all the funds available to fund a working city," she said.

Source: http://www.insidetoronto.com/news/cityhall/article/1346560--red-hot-real-estate-market-helped-with-city-budget-surplus

Kenya: Real Estate to Grow At a Slower Rate

Real estate activity in kenya is set for slower growth in coming months as financing constraints hurt the supply side.

Analysts say the currently high interest rates have had the most impact on developers who are now faced with an increasingly hesitant flock of potential buyers.

The already suppressed supply means rental prices will continue rising as demand for the available stock gathers pace. "Almost all developers have slowed building, postponed phases, or reduced the number of homes they are currently constructing," said Farhana Hassanali, the property development manager at HassConsult, on Wednesday.

"Most middle income housing developers rely on construction finance they can't access this now - this segment will most likely suffer," she said. House sellers however remain bullish and are raising the asking prices in bid to recoup their own higher costs in land, construction materials and financing.

"Inflationary pressure has also meant that bargain hunters have had no effect on prices because sellers are seeking higher prices to absorb high costs. Properties are not being discounted and sales have of course slowed down," said Nathan Luesby, managing director for real estate website Jenga Web.

Buyers are however unresponsive to the higher prices in the hope that prices will fall, widening the gap between asking and closing prices. The Hass Property Index for first quarter showed closing prices in the middle and upper market fell slightly by 0.7 per cent, while asking prices rose by 1.3 per cent on average.

HassConsult now forecasts continuing flat prices in the next 6-12 months. However, prices are expected to rise shortly after as there will be more people fighting for the limited stock that will be offloaded in the market.

"The impact is not visible currently to the rest of the economy but will be felt in coming months due to a slow down in supply of new-build," said Jenny Luesby, a consultant for the quarterly index.

Buy-to-let has become an attractive investment class as pent-up demand pushes up prices for rentals. Home buyers have kept away from mortgage loans as they fear the loan-to-value ratio may become slop-sided owing to current high interest rates ranging up to 28 per cent for direct home purchase.

The construction sector began experiencing slow growth in the last quarter of 2011. Data from the Kenya National Bureau of Statistics (Knbs) showed the quantity of cement produced declined by 0.6 per cent from 327,343 metric tonnes (MT) in November to 325,408 MT in December, while consumption fell by 3.6 per cent from 290,413 MT to 280,071 MT in the same period.

The value of building plans approved by the City Council of Nairobi for residential construction fell to Sh12.5 billion in December 2011 from a high of Sh16 billion recorded earlier in July.

Source: http://allafrica.com/stories/201204190280.html

Promontory real estate points to growth

There's a canary in the coal mine, but this time the indications are looking good. Promontory vacant land sales are pointing toward potential growth perhaps a resurgence in home construction or simply a bolster of support in the market as investments in real estate continue to crop up in the area.

According to documents from the Summit County Recorder's Office, in a single year, more than 40 vacant lots were snatched up by one person in Promontory. A real estate investment company based in California, started picking up lots after the owner decided to settle part-time in Park City.

While his number might outpace most buyers in town, the trend holds true to what Realtors are noticing, vacant land is a hot commodity in the Park City area.

"Inventory for homes is starting to shrink," said Kathy Mears, a Summit Sotheby's Realtor, "and suddenly there is a lot of interest in vacant land. We're seeing sales we haven't seen in a long time."

In 2011, the number of vacant land sales was up 23 percent from the year before according to the Park City Board of Realtors (PCBR), the largest increase among all property type sales, including home sales and condo sales. More than one Realtor agreed that vacant land prices have seen a bottom and demand is starting to heat up, especially in Promontory.

"If the prices are good, people are going to buy more," said Mark Seltenrich, the statistician for the PCBR. These numbers indicate that we've probably passed the bottom of the market, and that the bottom for lots sales was last year.

"When all is said and done, I believe the median prices will be higher this year than last."

At the same time last year, PCBR recorded the median home prices at $125,000 for vacant land in Promontory. This year, that median price has soared to $202,000, a 62 percent increase.

"It's easy to see in retrospect, but anyone that has faith in the market would see it was a good deal. Half of vacant land sales fell below $125,000. For what you're getting, that's a decent investment."

Prices for vacant land in 2011 were 70 percent below the peak, Seltenrich said, giving buyers more than a two-thirds discount from only a few years ago.

"It does show that investors are out there looking to get good deals on real estate in general," Seltenrich added. "We're seeing a shift in the market."

Karin Wilson, a member of the Promontory Executive Team, said her vacant land sale numbers don't seem to be slowing down as interest in the area grows. In 2010, Promontory closed 71 real estate deals. That number grew to 95 last year and continues to add steam. mid-April, Wilson said 17 sales had closed, remarkable because the first few months of the year are considered an untraditional selling season for Realtors.

"Real estate is an investment," Wilson said. "People came out here, saw some tremendous values and bought a lot of distressed inventory."

"We have seen a real uptick in building," she added. "The number of properties that have started building is at 17 or 18 properties now, all under construction. And there are several more going through the design process."

As vacant land sales continue, more are popping up in some of the least expected places. Mears helped to close two vacant land sales in Hidden Oaks, an area that she said hadn't experienced a vacant land sale since 2007. Both sales were this year.

"There is a renewed interest in buying vacant lots right now," Mears said. "The land prices have adjusted to prices that make sense to build. The inventory on available homes has shrunk and opting to purchase and build as opposed to buying an existing property is on the rise."

Source: http://www.parkrecord.com/ci_20417814/promontory-real-estate-points-growth

In Two Years, Real Estate will Rock

Housing starts will nearly double by 2014, and home prices will begin to rise in 2013, with prices increasing significantly in 2014.

Those rosy predictions come from a new semi-annual survey of 38 of the nation's leading real estate economists and analysts by the Urban Land Institute's Center for Capital Markets and Real Estate.

 The economists foresee broad improvements for the nation's economy, real estate capital markets, real estate fundamentals and the housing industry through 2014, including:

• The national average home price is expected to stop declining this year, and then rise by 2 percent in 2013 and by 3.5 percent in 2014.

• Vacancy rates are expected to drop in a range of between 1.2 and 3.7 percentage points for office, retail, and industrial properties and remain stable at low levels for apartments; while hotel occupancy rates will likely rise;

• Rents are expected to increase for all property types, with 2012 increases ranging from 0.8 percent for retail up to 5.0 percent for apartments;

These strong projections are based on a promising outlook for the overall economy. The survey results show the real gross domestic product (GDP) is expected to rise steadily from 2.5 percent this year to 3 percent in 2013 to 3.2 percent by 2014; the nation's unemployment rate is expected to fall to 8.0 percent in 2012, 7.5 percent in 2013, and 6.9 percent by 2014; and the number of jobs created is expected to rise from and expected 2 million in 2012 to 2.5 million in 2013 to 2.75 million in 2014.

The improving economy, however, will likely lead to higher inflation and interest rates, which will raise the cost of borrowing for consumers and investors. For 2012, 2013 and 2014, inflation as measured by the Consumer Price Index (CPI) is expected to be 2.4 percent, 2.8 percent and 3.0 percent, respectively; and ten-year treasury rates will rise along with inflation, with a rate of 2.4 percent projected for 2012, 3.1 percent for 2013, and 3.8 percent for 2014.

The survey, conducted during late February and early March, is a consensus view and reflects the median forecast for 26 economic indicators, including property transaction volumes and issuance of commercial mortgage-backed securities; property investment returns, vacancy rates and rents for several property sectors; and housing starts and home prices. Comparisons are made on a year-by-year basis from 2009, when the nation was in the throes of recession, through 2014.

While the ULI Real Estate Consensus Forecast suggests that economic growth will be steady rather than sporadic, it must be viewed within the context of numerous risk factors such as the continuing impact of Europe's debt crisis; the impact of the upcoming presidential election in the U.S. and major elections overseas; and the complexities of tighter financial regulations in the U.S. and abroad, said ULI Chief Executive Officer Patrick L. Phillips. "While geopolitical and global economic events could change the forecast going forward, what we see in this survey is confidence that the U.S. real estate economy has weathered the brunt of the recent financial storm and is poised for significant improvement over the next three years. These results hold much promise for the real estate industry."

A slight cooling trend in the apartment sector – the investors' darling for the past two years – is seen in the survey results, with other property types projected to gain momentum over the next two years. By property type, total returns for institutional quality assets in 2012 are expected to be strongest for apartments, at 12.1 percent; followed by industrial, at 11.5 percent; office, at 10.8 percent; and retail, at 10 percent. By 2014, however, returns are expected to be strongest for office, at 10 percent, and industrial, at 10 percent; followed by apartments at 8.8 percent and retail at 8.5 percent.

The forecast predicts a modest increase in vacancy rates, from 5 percent this year to 5.1 percent in 2013 to 5.3 percent in 2014; and a decrease in rental growth rates, with rents expected to grow by 5 percent this year, and then moderate to a growth rate of 4.0 percent for 2013 and 3.8 percent by 2014. This may be indicative of supply catching up with demand.

For the housing industry, the survey results suggest that 2012 could mark the beginning of a turnaround – albeit a slow one. Single-family housing starts, which have been near record lows over the past three years, are projected to reach 500,000 in 2012, 660,000 in 2013, and 800,000 in 2014. The overhang of foreclosed properties in markets hit hardest by the housing collapse will continue to affect the housing recovery in those markets. However, in general, improved job prospects and strengthening consumer confidence will likely bring buyers back to the housing market.

From Real Estate Economy Watch

Real estate agents expect housing values to increase

Livonia home sales are increasing and listed homes are spending less time on the market.

But the median sales price has declined for the first two months of this year versus last year.

For real estate agents, the statistics show that the housing market is turning around.

“There's an increased demand, the days that listed homes are on the market are falling, which means the homes are selling faster, and the numbers of sales are increasing,” said Gary Reggish, broker and owner of Remerica United Realty in Livonia.

Realcomp of Farmington released figures on Monday showing that metro Detroit's overall home sales have increased 15 percent in a six-county area, including Wayne, Oakland and Macomb counties.

Realcomp reported 104 sales in February in Livonia, up from last February's 68. This year's total is 193, up from 133 a year ago.

While that statistic shows the inventory of listed homes is moving, other statistics reveal that values have not turned around yet.

Home values showed a decline. The median sales price in Livonia was $81,500 for February, down from last year's $93,500. The median price for overall 2012 sales was $88,000, falling from $90,000 in 2011.

Homes are not sitting on the market as long as they were in 2011. A year ago, a home sat on the market for an average of 100 days for January and February; in 2012 that number for the first two months is 93.

Bidding wars

Lisa Hall, owner of Remax Dream Properties in Northville and Livonia, said agents are experiencing “extremely low inventories” for homes, except for foreclosures and short sales,

Both Reggish and Hall said bidding wars are starting to return as buyers seek homes, which also drives up the sales price, and will increase the value of homes listed for future sellers. They both indicated that they need homes to sell.

“If the home is well-taken care of, we are seeing several offers for it,” Hall said. “If a home four houses away from you sells for $65,000, it isn't out of the question that you can get $85,000 for your house.”

Reggish said the National Association of Realtors is putting pressure on the banks to lift the appraisals and get them to an accurate market value. Reggish serves on its board of directors, and on the state and local issues committee and the federal housing committee.

“It's fear,” Reggish said of the banks. “They fear that the market hasn't stabilized yet.”

Hall said the housing bubble burst, and that it will take at least 10 years to return the values back to where they once were. “You can stay, if you still have equity in the home or if you want to be moving up into a larger home, now is a good time to be moving up,” Hall said. Larger homes in foreclosure or short sales are good buys right now, Hall said.

And while homes have fallen drastically in value, the other side of that coin means that downsizing also brings a lower price beyond what existed a few years ago. Hall said she has listed a colonial in Livonia for a couple who want to downsize to a condo. “Those condos have fallen $50,000 to $75,000 in price,” Hall said.

Reggish believes Livonia is turning the corner. “The number of units is up so that shows the demand, and the homes are getting eaten up quickly,” Reggish said.

The average sales price in Livonia is about $115,000, give or take a few hundred dollars, Reggisn said. “That number speaks as a number that is stabilizing,” Reggish said.

Reggish believes homeowners are on the cusp of a market upswing and the market is ripe to buy. Home values are at their lowest levels, interest rates are at 4 percent for a 30-year mortgage and 3.75 percent for a 15-year fixed rate, Reggish said.

Reggish said his office showed a home in Livonia last weekend and 22 people showed up. One home in Northville listed for $575,000 received six offers and sold for $610,000.

Reggish said he is averaging 2 1/2 offers per house. “The buyers are out there; they just need product to buy,” Reggish said.

Livonia not as hard hit

Hall, who lists properties in Northville, Novi and Farmington Hills as well as Livonia and other western Wayne County communities, said she averages about three prospective buyers for each house she lists.

“Livonia is one of the best places to buy,” Hall said. “It wasn't hit as hard as other communities.”

At his recent State of the City, Mayor Jack Kirksey said it could take 11 to 15 years to return to 2007 property tax levels unless changes in state legislation occur, which is unlikely.

Taxable values are limited under Proposal A in Michigan to the consumer price index or 5 percent, whichever is less, unless the house is sold. Kirksey expects local governments will be limited to about 3 percent a year.

Kirksey said he was encouraged by some of the statistics about the housing market and that other factors tie into the decline in the housing value, such as foreclosures. Kirksey said he's spoken to real estate agents and is aware that homes are selling quicker.

“There's far fewer on the streets than a year ago,” Kirksey said.

Kirksey is optimistic, but knows that these sales figures are nothing more than a snapshot, and that overall sales at the year's end will need to be examined.

“It's virtually impossible for me to say whether we've bottomed out or not,” Kirksey said. “At the very least, it appears we've started to climb out of it.

“I don't know if that will continue, but I don't think we will fall any further. I am optimistic about it.”

Source: http://www.hometownlife.com/article/20120318/NEWS10/203180495

Dubai property prices are among fastest rising

Dubai’s residential real estate has not only stabilised, but house prices in the emirate rose an average 2.3 per cent in the final three months of 2011, according to global residential and commercial property consultants Knight Frank.

As per the consultancy’s Global House Price Index (GHPI), the increase in Dubai house prices during the last quarter of 2011 was particularly steep, and ranked on the last quarter’s rise of 2.3 per cent, Dubai stands at No. 12 worldwide in terms of house price appreciation among the 52 destinations worldwide where Knight Frank tracks house prices.

For the whole of last year, Dubai ranked No. 26 as per the GHPI, which tracks the performance of mainstream house prices wprldwide. Dubai house prices rose just 0.5 per cent for the entire year 2011, suggesting that they declined in the initial months of the year, and were more than countered by the last quarter surge.

Knight Frank’s rankings are supported by real-time asking prices on popular local websites where property is advertised, with asking prices going up in many well established and maintained locations in Dubai.

According to real estate investment and advisory firm Jones Lang LaSalle (JLL), Dubai’s property market is maturing and showing signs of polarisation, with differing prospects in 2012 for property based on location, quality and management.

“2011 was a difficult year for real estate investors with most sectors of the market moving in the favour of tenants, with lower prices and rentals.

While these trends appear likely to continue into 2012, the main trend for this year is likely to be an increasing polarisation within each sector of the market,” said Alan Robertson, CEO, JLL MENA, in a recent report on the UAE’s property market trends.

“As the performance of the best quality projects will improve, average prices are expected to decline further in 2012 within this increasingly two tier market,” he said. “Beyond investment valuations and rentals, we are continuing to see the evolution of a more mature marketplace in the UAE where valuations and property and asset management are becoming increasingly important for occupiers, developers and investors,” Robertson added.

“The local real estate market will continue be impacted by regional and global events during 2012 as, the UAE is not immune from the on-going impact of the Arab Spring and the economic troubles of the Eurozone. As we enter 2012, the real estate sector will inevitably be susceptible to any potential geo-political changes within the region, with the recent escalation of rhetoric between Iran and the West being the major cause of uncertainty. The worsening European debt crises and its impact on the global economy will be the other major external challenge to the UAE real estate market in 2012,” he said.

According to Knight Frank analyst Kate Everett Allen, “In the final quarter of 2011, prices fell in 60 per cent of the countries covered by the index.”

New entrant Brazil tops Knight Frank’s GHPI for 2011, with house prices rising 26.3 per cent in 2011. “Away from Europe and Asia, Brazil, a new addition to the index this quarter, tops the rankings with 26 per cent price growth in 2011,” said Kate. “This remarkable performance is being fuelled by strong population growth, rising household wealth and an expanding mortgage market,” she added.

An unsettled Europe formed the bottom of the housing market pyramid in 2011, with still-declining house prices in many of the European markets. “Unsurprisingly, all 12 of the bottom rankings are occupied by European markets with Ireland, down 17 per cent, in last place. However, not all European markets are in a moribund state,” said Kate.

“Estonia, Slovenia, Iceland, Norway, Switzerland and Germany achieved annual growth over 5 per cent, despite the precarious state of the Eurozone’s sovereign debt crisis,” she pointed out.

“A combination of global economic uncertainty, weak consumer confidence and strict mortgage lending criteria are dampening growth in Europe and North America while stringent government cooling measures in Asia Pacific are successfully curtailing house price inflation there,” she said.

“Asia’s downturn has proved highly influential. In 2007 China, Hong Kong and Singapore saw price rises of 42, 21 and 33 per cent, respectively. Last year, growth was -2, 11 and 5 per cent,” she elaborated.

“What the index makes clear is that the performance of global housing markets is far from uniform. While there is some cause for localised optimism, the overall trend for 2012 at least is unlikely to be positive.”

Source: http://www.emirates247.com/business/dubai-property-prices-are-among-fastest-rising-2012-03-11-1.447632

Property commissions total Dh700m

Total commissions earned by real estate brokers, companies and individuals, in Dubai amounted to almost Dh700 million for 2011, according to Real Estate Regulatory Agency (Rera).

Yousef Al Hashmi, director of Rera’s Real Estate Licensing Department said the commissions reflect the total yield of various property deals that included the sale of lands, villas, residential units such as apartments and hotel apartments and offices in freehold areas, valued at Dh34 billion.

He pointed out that the continuous efforts by RERA to set up a comprehensive, accurate database that covers all aspects of the real estate development sector and relevant professions have made it easy to come up with accurate statistics on brokers’ commissions, compared to previous estimates.

Real estate brokers receive one per cent of the deal value as a commission on successfully sealed deals, unless parties agree otherwise.

The real estate brokers’ register in Dubai is regulated by the law no. 85 of 2006 concerning regulation of real estate broker’s register that restrict brokers from mediating in the sale, purchase or marketing of properties that are not listed at the Dubai Land Department.

Brokering agencies and agents are listed through the sale registration process within the department system, which helps document and protect the brokers’ rights and facilitates the preparation of such reports.

Al Hashmi said that the Rera not only effectively applied the items of the bylaws, but also formed quality initiatives and applied the best international practices in the sector to raise the levels of professionalism in brokering in Dubai.

Source: http://www.emirates247.com/property/real-estate/property-commissions-total-dh700m-2012-03-07-1.447209

Confidence 'returning to Cairo real estate market'

There is evidence of more clarity and increased activity in Cairo’s real estate market, with confidence returning 12 months after Egypt’s revolution, says a report.

However, with significant uncertainty still evident, much will also depend upon the country’s ability to address many of the residual challenges that are still largely unresolved, said the Jones Lang LaSalle report.

Ayman Sami, head of Jones Lang LaSalle’s Egypt Office, said: “It’s a challenging time but we are optimistic about the long term fundamentals of the Cairo real estate market. If the country is able to address its political issues then we are confident that activity will return to the market relatively quickly as demand exists across a number of sectors. We are already seeing some evidence of increased activity but continued certainty is a basic requirement for the economy to fully rebound.”

Indicators that 2012 should see a potential improvement in the Cairo real estate market, according to the report, include:

• Current and active demand for between 5,000 and 15,000 sq m of office space from a number of international FMCG and petrochemical occupiers.

• Retailers continue to open new stores with recent examples including American Eagle and Pinkberry opening their first stores in Egypt at CityStars and LC Waikiki (a Turkish retailer) opening their first store in December 2011 at Sun City Mall in Heliopolis.

• Some Real estate projects will continue towards completion in 2012. Cairo Festival City will deliver its first office phase in mid-2012 and Damac is looking to open its retail and office project opposite Dandy Mall before the end of the year. The market is witnessing a revival of other mixed use projects driven mainly by UAE and Qatari developers.

Sami said: “For the longer term investor, Egypt will always be an attractive market with considerable potential. There is opportunity in the many challenges that need to be addressed, such as more affordable housing, but the sector needs stability to be able to do this.”

Office: Currently there is about 700,000 sq m of Grade A office stock across the Cairo metro area. No new Grade A space was completed in 2011 but up to 120,000 sq m could be delivered by the end of 2012. However Jones Lang LaSalle anticipates this is more likely to only be around 60,000 sq m given the current situation with many planned projects experiencing extended delays. This will include Cairo Festival City, Mivida by Emaar Misr and Citadel Plaza by Alkan Holding. Prospective tenants are therefore seeing an improved standard of available space and greater choice. Vacancy is approximately 35 per cent but is expected to increase in 2012 given the proposed new space due to be delivered.

Average office rents peaked in 2010 at $55 per sq m per month for prime Grade A space but declined by 20 per cent in 2011 to $ 45 per sq m per month.

Retail: Total stock at the end of 2011 of mall based retail space was approximately 786,000 sq m. Major completions included Phase 1 of Mall of Arabia in Sheikh Zayed and Sun City Mall in Heliopolis which is currently 40 per cent operational. Despite delays a possible 260,000 sq m of new retail space could enter the market before the end of 2013. Cairo Festival City is not expected to be open until 2013. With the completion of other retail developments, such as a number of mixed use schemes could push the total retail floor space in Cairo to as high as 1.8 million sq m by 2014 with 29 per cent of supply comprising super regional and regional malls by 2015. This percentage is expected to increase with the completion of multiple community and regional malls.

Source: http://www.africanmanager.com/site_eng/detail_article.php?art_id=18001

With inventory lower, properties sell faster

Inventory levels for single-family homes and condominiums in the Boston area are at an all-time low, signaling a shift to stability in the Hub’s housing market.

In Boston proper, real estate inventories are down 17 percent from last year, according to data from Multiple Listing Services Network PIN. In neighborhoods such as Back Bay, South End, the waterfront and Beacon Hill housing inventories are down 10 percent, 19 percent, 36 percent and 36 percent, respectively. These lower inventory levels also accompany fewer days on market — down 12 percent from last year — and median prices that are on the upswing with a 10 percent increase citywide.

Real estate expert cite several factors driving these downtown market trends. The downtown Boston market has not seen any large-scale residential condominium projects since 2007 because funding has been non-existent for the past several years.

According to Yanni Tsipis, a lecturer at the MIT Center for Real Estate and senior vice president at Colliers International, “We are largely through this period of distress. In the downtown market, as existing inventory of newer construction burns off, it appears likely that there will be a build-up of demand for new production and upward pressure on pricing.”

Tsipis also said many of these potential sellers in the downtown market are also “move up” buyers or buyers who move to the newest building or development in the city from their existing one. With construction just beginning on several downtown projects, these “move up” buyers have won’t have any new large-scale buildings to buy into for the next several years.

In cities and towns surrounding Boston there is a similar trend. Cambridge’s housing inventory is at an all-time low of 126 housing units, down 43 percent from last year with a 4 percent decrease of days on market to 110. Arlington’s inventory is down 21 percent from last year and days on market are down 33 percent, from 118 days to 79 days. Inventory in Quincy is down 6 percent, with days on market down 4 percent from last year to 150.

“Massachusetts has not been hard hit as other areas, and the market is stabilized. We don’t have the amount of foreclosure’s the rest of the country has seen,” said Nicolas Retsinas, a senior lecturer in real estate at the Harvard Business School and director emeritus of Harvard University’s Joint Center for Housing Studies.

With regards to the lower inventory levels, Retsinas added, “Sellers have been spooked by the decrease in prices in the past. We are seeing a lag in inventory because of it.”

Strict lending requirements continue to strain the market. “At the moment we are going through a very tight period for credit and we should have more of a demand today given the demographics,” Retsinas said. “We are on the verge of recovery because of the tightened credit.”

Source: http://www.bostonherald.com/business/real_estate/view/20220224with_inventory_lower_properties_sell_faster/srvc=home&position=also

Two areas where investing in property wallops alternatives

The recent downturn in property prices has caused even many property aficionados to question whether real estate is the best investment choice.

In a following article we will discuss the disadvantages of investing in real estate because, yes, there are some, but for this article let’s look at the top two reasons where it beats alternatives.

1. Leverage

What is leverage? In one simple sentence you could say it is doing more with less.

An example of leverage is a student borrowing money in order to complete an education which will pay them back in the future with increased earnings.

Leverage in real estate is typically achieved by borrowing money from banks up to a certain percentage of the total price of the property.

Leverage will amplify the results of the investment to you either up or down.

A demonstration of confidence that real estate typically goes up in price is that a bank would never lend you money at 4% over 20 years to invest in stocks or mutual funds whereas that is exactly what Czech banks will do for you to purchase investment real estate.

If you have leverage, inflation actually works to your advantage since your debt becomes ‘cheaper’ with time. Thus a 1,000,000 CZK mortgage today is not the same as what it was 10 years ago and 10 years in the future a 1,000,000 CZK mortgage will seem like nothing.

2. Tax Advantages

There are a few tax advantages of property that you will not get with other investments.

For example, in Czech Republic you can depreciate your property at a fixed rate per year which basically means you will be able to get income without paying tax on it. That’s right; income without paying tax on it, how nice is that!

Depreciation is a huge advantage of property investing but can be difficult to understand. I would really recommend searching on YouTube for an explanation if you have trouble understanding what this is. There are some great video explanations with examples.

Another tax advantage of property is that you can expense costs related to your property. So, for example, if you owned a property in another city of Czech Republic you could expense travel costs and hotel expenses if you went to inspect the property.

There may be office or vehicle costs related to managing the property which are also allowable expenses.

Can you expense your office setup if you buy stocks or mutual funds? Not a chance. The only allowable expenses in Czech Republic for stocks or mutual funds are purchase fees and broker fees.

In Czech Republic, a property also becomes free of any tax on the capital gains if you hold the property for 5 years or longer. Stocks are capital gains free in 6 months only if you own less than 5% of the company.

So in conclusion, property is more tax favored to other investments while you hold it as well as when you sell it.

Runner-up Reasons

I can add to the two above other secondary reasons such as cash flow, appreciation, principal reduction and the non-volatile nature of real estate.

It is also physical which means you can touch and feel it which can be a real comfort to investors in times such as these.

But before you run off and buy some investment real estate, be sure to read the next article which will look at some of the disadvantages of investing in real estate. It’s not a one-way street.

Source: http://praguemonitor.com/2012/02/23/two-areas-where-investing-property-wallops-alternatives

What makes Miami a hot spot for international real estate

What is so special about Miami?

Go to any real estate conference and you’ll hear all about the successes of real estate in Miami, and despite the housing and foreclosure crisis, international buyers continue to snatch up property in the city. But what makes Miami so special?

Greg Freedman, Partner at BH3 and Developer of Trump Hollywood told AGBeat that international buyers are increasingly buying luxury properties “Because they are perceived as cheap. People love Florida for the weather and favorable taxes (there is no State or City income tax in Florida), and the consensus is that there will always be a steady inflow of people that want to move to Florida.”

Freedman continued, “Ask anyone in the Northeast, Midwest, Europe, Russia or Canada in February where they would rather be, and 90% of them will say “Florida.” Ask anyone in Argentina and Brazil in June the same question and you will hear the same response. As a result of the international audience that Miami attracts, the old definition of “the Season” is now a misnomer. There is no season, there is only a difference in who is coming…and there is always someone coming where at that given time, the weather in Florida is much better than where they came from.”

Paola Garcia-Carrillo, Sales Director of Residences at Vizcaya added that “Luxury homes are being purchased by international buyers because people want to take their money out of their country and invest it in the best country in the world.”

Miami vs. America

Shawn Vardi, President of Think Properties notes that in recent years, the company broke ground in Miami, coming from New York, giving them a unique perspective. Vardi said, “Miami’s property market continues to outperform the rest of the country as condominium sales in 2011 increased by more than 50%, year-on-year. A current level of supply and demand on Miami Beach, where Boulan is located, denotes a healthy market that is expected to outperform others through out the U.S. long-term. Tourism, international buyers, and investors have had positive effects on the local economy and real estate market place. For Miami Beach and Downtown, the bottom is long gone and all these areas are already in an upward swing.”

Freedman explains why Miami is an anomaly, stating that the city is one of few markets in America “whereby it is an international city that draws audiences from not only Latin America, but also Canada, Europe, and Russia. The impact of the international community in Miami is the core reason that the overhang in inventory, which was once thought to be 10 years’ worth of supply in the Downtown market alone, has been fully absorbed in less than 3 years.”

“Additionally,” Freedman continues, “compared to other major cities such as New York and Los Angeles, Miami is perceived as being very affordable. It is important to note that this international influence is geared primarily towards the Miami Downtown market and the Beach corridor. Most areas West or North of these locations (i.e. Kendall, West Palm Beach) are still severely distressed and haven’t experienced increases in absorption or valuation. As such, the anomaly of Miami and its rebound are fairly insulated to core areas whereby the outlying areas are still experiencing similar trends to the rest of the country.”

Miami 2002 vs. Miami 2012

Garcia-Carrillo says that Miami today is different from Miami in 2002 because of the housing crisis. “Banks are tighter in lending & buyers have been a lot scarcer.”

Freedman explains that pricing today is that pricing is back to 2002 levels, “which was when real estate valuations really begun their unsustainable uptick. Since 2002, real estate valuations more than doubled at their peak in 2006 and have since returned to near 2002 levels in certain markets.”

Further, Freedman notes the core differences in the market today being the following:

“A paradigm shift of more baby-boomers embracing the condominium lifestyle, thus resulting in an exodus of this demographic away from their larger suburban single family residences;

Availability of mortgage financing for luxury product has slimmed, although government-sponsored financing for lower priced residences is now more fluid;

Interest rates, where financing is available, are at all-time lows;

The Miami market (specifically the Downtown & Beach market) has seen a large influx of international purchasers taking advantage of favorable currency valuations of their national currency compared to the U.S. dollar combined with market-corrected pricing of new developer inventory that was previously priced 30%-50% higher at the peak in 2006/2007. We refer to this as a “double-whammy” whereby a Brazilian looking to purchase a $1 Million condo in 2006 is able to purchase that same condo today for about 60% less as a result of both decreased real estate prices and the strengthening of their local currency.

The impact of national policy

With the introduction of dozens of national policy changes and an economic collapse, because Miami deals with international dollars so frequently, the market has felt various impacts, most notably with distressed sales.

Vardi said, “What has become apparent is the availability of cash buyers coming from Latin countries and especially with the new bill allowing foreigners to purchase over a certain amount in real estate, they can then obtain a visa.”

Garcia-Carrillo agreed, noting that “Shifts in national policy have impacted distressed sales in Miami by national policies that have been beneficial to our property is through the EB5, allowing buyers from other countries to obtain visas, This home buying bill was added on to a policy that has been around for 21 years and it is just now catching on. We have a large Mexican and Venezuelan circuit of buyers.”

Also alluding to the EB5 program, Freedman added that “the continued commitment of the government in its support of agencies like Fannie Mae to maintain lending liquidity in the marketplace, which has enabled both new purchasers to obtain affordable financing, and distressed owners the ability to either refinance their homes or take advantage of short sales.”

Start spreading the news...

Source: http://agbeat.com/real-estate-news-events/what-makes-miami-a-hot-spot-for-international-real-estate/

Global real-estate markets continue promising trend

While economic uncertainty still affects the main commercial real-estate centres around the world, global real-estate markets are showing steady improvements, according to Jones Lang LaSalle's new suite of global forecasting reports.

The firm's Global Office Index reveals the fourth quarter of 2011 marked the eighth consecutive quarter where prime office rents have risen, up a further 0.8 per cent over the previous quarter and representing 6-per-cent growth over the fourth quarter of 2010. Global vacancy is edging down to the lowest point for the past two years at 13.6 per cent.

"The majority of global leasing markets are holding firm, and many are showing remarkable resilience, especially among the BRIC countries [Brazil, Russia, India and China], as well as robust showings from Canada, Australia, Germany and the Nordics," said Jeremy Kelly, director of Jones Lang LaSalle's Global Research team and author of the firm's Global Market Perspective. "While leasing markets in the major financial centres are softening, the limited supply pipeline should ensure that they do not move significantly out of balance."

Jones Lang LaSalle's Global Office Index tracks the rental performance of prime office space across 81 major markets in the Americas, Asia Pacific and Europe. Key findings of the Jones Lang LaSalle's Fourth Quarter 2011 Global Office Index include:

_ Rental growth rose the most in the Americas at 1.2 per cent in the fourth quarter over the third quarter of 2011, as landlord leverage gradually increased in the majority of markets.

_ Asia-Pacific markets saw rental growth decelerate from 2.5 per cent in the third quarter to just 0.9 per cent in the fourth quarter as corporate demand began to slow.

_ Despite the negative economic backdrop, Europe's office markets showed some improvement over the fourth quarter with growth picking up to 0.4 per cent from a virtual halt in third quarter 2011.

_ Leasing volumes will be steady in 2012 with positive rental growth expected in most major office markets. Beijing, Toronto and San Francisco are expected to top the charts with potential double-digit increases.

Investors, already wise to the resilient fundamentals in the commercial real-estate sector,

continue to choose real estate given its attractive investment status compared with alternative investments.

The Global Market Perspective shows robust capital market investment volumes in the fourth quarter 2011. A total of US$411 billion (Bt12.68 trillion) was transacted in full-year 2011, up 28 per cent on 2010. 2012 transaction levels are set to match 2011, with upside potential in the Americas.

Arthur de Haast, lead director of the International Capital Group at Jones Lang LaSalle, added that the markets are witnessing a "flight-to-quality", traditional in times of uncertainty, as investors pivot towards core assets in those major cities with strong economic fundamentals and/or with "safe-haven" characteristics. While there is capital available for commercial real estate, debt financing around the global will be more constrained in 2012. We're seeing capital appreciation slowing as yields flatten, and spreads between core and secondary assets widen.

While commercial real-estate expectations for 2012 have been tempered, barring significant financial system shocks, commercial real estate investment and leasing volumes are likely to be maintained at 2011 levels.

Source: http://www.nationmultimedia.com/business/Global-real-estate-markets-continue-promising-tren-30175734.html

Westport Real Estate Market Looking Up for 2012

WESTPORT, Conn. – Like the weather, making real estate predictions isn't 100 percent accurate. But Westport Realtors Bunny Mostad and Deb Alderson, a mother-daughter team at Coldwell Banker, think Westport will see the biggest upswing in home sales this year since 2009.

After the recession, the number of home sales plummeted, Mostad said. In 2009, a total of 250 homes were sold, compared with the 400 homes sold three years earlier, she said. Conditions improved over the next two years, with 351 homes sold in 2010 and 344 sold in 2011. That's one reason Mostad thinks 2012 will be a good one.

"The number of units sold should continue to go up," she said. "I think we'll get back closer to what we saw about five years ago. We should definitely at least reach last year's number — and probably more."

Although the trends in numbers show people have regained some confidence in the market, Mostad said insecurity remains. Alderson agreed, saying she has found buyers are still fearful of buying and having the market drop again.

However, when the number of home sales dropped, so did the average selling price in Westport, Mostad said. In 2006, the average selling price was $1.598 million. This past year, the average home price was $1.338 million — a factor that she believes will help sales increase.

"I think prices will stay down, which is great for buyers," she said, especially first-time buyers. First-time buyers, she added, have become the National Association of Realtors' biggest market.

Continued lower prices, coupled with Westport's appeal, should prove fruitful for sales, Mostad said. The town's schools, clean beaches, proximity to New York City and "unique" amenities such as Longshore Club Park, attract buyers, she said.

On the national front, Mostad said there are signs that investors will be more active this year, which should also help drive sales. And mortgage companies, she said, have reported there will be an influx of foreclosures.

"I don't know if that's true or not, but that's what they've told us," she said. "There aren't many [foreclosures] in Westport, but there are some."

Source: http://www.thedailywestport.com/news/westport-real-estate-market-looking-2012

Real estate market shows pulse, but not yet roaring back to life

St. Paul, Minn. — Minnesota's real estate industry enjoyed some improvement in 2011, but don't expect a roaring comeback this year, said residential and commercial real estate experts who hosted events Wednesday to review the state of their industry.

It would be a stretch to call the residential real estate market healthy. About half the sales in 2011 involved short sales or foreclosures, which sell at firesale prices. The median home sales price ended the year down 12 percent compared to 2010.

Big price gains are probably still two to three years away, according to Richard Tucker, president of the St. Paul Area Association of Realtors.

However, Tucker believes that the residential market took a good turn in 2011. "There is no question that as we look at the data and try to read what it's telling us, I do think there are positive trends in that and it's working in right direction," he said.

The big headline of last year, Tucker said, is that far fewer houses were for sale. If fewer foreclosures and short sales hit the market — and that may be a big if — that will support home prices.

That could mean prices will remain down on a year-over-year basis, but possibly to a lesser degree.

In December, there was already some evidence of a moderation in price declines, said David Arbit, a market analyst with a realtor group in Minneapolis. The median price last month was down 6.5 percent from the year before — the smallest year-over-year drop since the previous January.

What's more, Arbit notes, more homes were sold last year than any year since 2006, with the exception of 2009 when a federal homebuying incentive was offered.

"2006 was our peak bubble year. The fact that we've had the most demand since that bubble year we think bodes really well and is a promising indicator," Arbit said.

"It's always better to see higher sales rather than lower sales, but I'm reminded of the saying, 'I've been down so long anything looks like up to me,' " said Tom Stinson, state economist.

Stinson's optimism is restrained, which he made clear in comments delivered Wednesday to a group of commercial real estate professionals. The commercial real estate market improved somewhat in 2011 — landlords started collecting rent again on about a million square-feet of idle space. And multi-family housing, which is a component of commercial real estate, enjoyed particular strength.

But Stinson cautioned the crowd that there are headwinds in the economy for real estate. He doesn't expect great economic gains in 2012. If the pace of job growth continues, he says it will take about two-and-a-half years before the nation recoups all the jobs lost in the recession. That's likely to be a drag on new household formation, which is a key factor in demand for housing. People who have doubled up in housing aren't likely to launch out on their own anytime soon. Those issues will not help residential or commercial real estate bounce back.

"If you're thinking we're going to go back to where we were in 2007 or 2006, you're wrong," Stinson said. "We're not going back to where we were. We're going someplace different."

Source: http://minnesota.publicradio.org/display/web/2012/01/11/real-estate-improvement/