Long Beach Real Estate Market Shows Steady Recovery

All signs indicate a slow but steady recovery in the Long Beach real estate market, with the biggest problem now being not enough homes available for sale.

Phil Jones, a board member with the national and state Associations of Realtors and an executive committee member of the Pacific West Association of Realtors, said 2013 has started stronger than anticipated, and 2012 was better than expected. Perhaps more important, the owner/broker at Coldwell Banker Coastal Alliance said, is the new interest of buyers to move up to bigger, more expensive homes.

“We (Realtors) were aware as early as 2011 that the market had stabilized,” Jones said. “Properties that were properly priced were beginning to sell, and sell for close to the price asked… Long Beach was always a rather stable market, and is the most affordable beach city in Southern California.”

Housing values are inching their way back up after the collapse of 2008, with prices increasing 5% to 7% over the previous year. In some neighborhoods, Jones said, values are back to 2002-03 levels.

“The highest levels were actually in 2005 and 2006,” Jones said. “We don’t expect to see those again any time soon, and actually hope we don’t. We’d just be back to the bubble we were in. We hope to see a consistent 5% to 7% increase, which is sustainable in this economy.”

Currently, the most active segment of the market is those homes valued between $400,000 and $600,000, Jones said. That’s a good sign, he said, because that means sellers are looking to move up.

“Million-dollar sales came back strong last year,” Jones said. “There’s a tremendous amount of liquidity out there right now, too.”

The flip side of the increasing property values is that people may be reluctant to sell, waiting for values to go up enough so they no longer owe more than the property is worth. But that logic may cost more money in the long run, Jones said.

“If you wait for a 5% increase on a $400,000 house, you get $20,000,” he said. “But at the same time, that $700,000 gets a 5% increase, or $35,000. So you actually lose $15,000.”

While the law of supply and demand drives prices up, the lack of houses to sell could present a problem. For example, Jones said that there were 103 homes for sale at this time last year in the 90808 zip code — there are only 27 for sale there today. “In some areas, were down to a one-month inventory,” he said. “To be comfortable, we’d like a six-month inventory.”

Mortgage rates continue to be at near-historic lows, but until recently, it has been very difficult to qualify for those loans. New loan guidelines have been released, though, and the money market is beginning to get better, Jones said.

“There’s still some tightness, but where they are backed by Fannie Mae or Freddie Mac, we’ve seen the market loosen somewhat,” he said. “In Long Beach, our limit (for mortgages backed by the federal agencies) is $729,000. We’re starting to see the pendulum swing back toward center.”

Foreclosures — and properties that have been foreclosed flooding the market — have slowed considerably, too. Bank officials have changed philosophy, working to lose less money, Jones said.

According to Jones, banks lose up to 70% of a property’s value if they foreclose. They can lose about 40% on short sales, and at least recently are losing about 23% on modified loans. That, in turn, has allowed property values to stabilize and start to rise. While the real estate market still remains vulnerable to federal policy decisions — continued discussion about eliminating or capping the mortgage interest tax deduction is mobilizing his Realtor associations — Jones said he is optimistic about 2013. “Right now, we’re seeing pretty much a mirror of 2012, maybe a bit better,” he said. “The supply could limit sales if we’re not able to increase inventory. I think it will be a good year, but not a great year.”

Considering the bad years of recent memory, a good year will be just fine, he said.

For the original post visit: http://www.gazettes.com/news/business/long-beach-real-estate-market-shows-steady-recovery/article_cb51a5d4-6bff-11e2-ad7b-0019bb2963f4.html

Twin Cities Real Estate Market Goes Up; 2013 Promising

It was a good real estate year in 2012 and experts expect that trend to continue in 2013 for home sellers.

The average home sale price went up 10-percent in 2012 in the Twin Cities, according to real estate expert, Herb Tousley, of the University of St. Thomas. Tousley says home inventory has also gone down from 20-thousand to just 14-thousand available homes on the market in 2012.

Tousley says low interest rates and fewer homes on the market will continue to drive up prices in the Twin Cities real estate market. Tousley says that makes 2013 a very good year for sellers. Tousley also says the percentage of foreclosure, or short sales, has fallen to less than 40-percent in 2012. At the peak of the recession in 2009 and 2010, Tousley says, distressed home sales accounted for 55 to 60-percent of all home sales.

For the original post visit: http://kstp.com/news/stories/S2882597.shtml?cat=1

Albany real estate market continues upswing

The recovery in the real estate market continued in November in the Albany, New York, region, with closed sales increasing 15 percent, pending sales up 11 percent, and the median price rising 5 percent compared to a year ago.

There were closings on 697 home purchases in the month, compared to 604 in November 2011, based on preliminary figures released today by the Greater Capital Association of Realtors.

Year-to-date sales total 7,523 new and existing homes, a 15 percent increase over the first 11 months of last year.

More homes sold through the Capital Region Multiple Listing Service from January to November than in any year since 2008, according to GCAR.

The median sale price in the month was $196,000; the average was $227,559. Both were up 5 percent over November 2011.

Officials expect the strong pace of sales to continue in 2013 in part because of historically low interest rates.

“We caution buyers, if you were waiting for the market to bottom out that time has passed,” GCAR President Nina Amadon said. “And, if you are waiting for interest rates to drop lower you may well miss the wonderful opportunity which exists today.”

Here are November’s results for the four largest counties in the area:

Albany: pending sales up 6 percent; closed sales up 17 percent; median price, $210,500, up 3 percent; average price, $239,033, up 5 percent

Rensselaer: pending sales up 13 percent; closed sales up 15 percent; median price, $157,900, up 1 percent; average price, $165,530, unchanged

Saratoga: pending sales up 33 percent; closed sale up 33 percent; median price, $265,800, up 1 percent; average price, $299,999, up 9 percent

Schenectady: pending sales down 10 percent; closed sales up 17 percent; median price, $170,000, up 9 percent; average price, $179,652, up 4 percent

For the original post visit: http://www.bizjournals.com/albany/news/2012/12/20/albany-real-estate-market-continues.html

Prestige property market looks good

IT'S been a tough five years of trading in Australia's prestige property market. As one of the worst-hit sectors during the 2008 financial meltdown, much of the country's high-end real estate market (houses valued at $3 million to $5m) suffered double-digit losses, with sliding demand and weak consumer confidence to blame.

Since then, the performance of the market has been mostly underwhelming, blamed in part by a refusal by vendors to compromise on a sale price for their home, and also cautious buyers, waiting until prices plateaued.

But there's optimism among some real estate agents, who are hopeful of a looming prestige property revival on the back of increased demand by domestic buyers, who believe the market has hit bottom, and a potential influx of foreign investors, lured by a recently announced government scheme to boost Australia's growth.

As the Chinese government changes property ownership regulations to slow Hong Kong's extraordinary growth, real estate agents believe countries such as Australia could benefit - with many Chinese investors turning to Australia as a safe and lucrative place to invest.

Real estate prices in Hong Kong have doubled since 2009 because of low interest rates and soaring demand, prompting the Chinese government to recently introduce new regulations - including an increased stamp duty - to slow the property market.

Last week, Hong Kong's most expensive apartment sold for nearly $US60m ($57m).

Sydney real estate agent Michael Pallier says the Australian prestige market has undergone a quiet but substantial shift during the past six months as investors expanded their property portfolios.

"One of the main reasons for increased market activity is vendors now meeting the market; people have accepted they can't ask the same prices they would have five or six years ago," says Pallier, who works for Raine & Horne in Sydney's Double Bay.

"Prices have began to stabilise in the $3m-$4m range and I think people are starting to realise there's great value to be had in the market.

"Psychologically, people are switching back to real estate as a safe place to put their money."

In the meantime, a decision by the Australian government last week to attract wealthy foreigners by lowering the bar for visa applications in return for investment in Australia, could have positive implications for the prestige property market.

The government says it will also fast-track visa applications for immigrants willing to invest at least $5m in approved Australian assets and state and territory government bonds. Although real estate isn't a complying investment, it's expected the flow on from wealthy Chinese investors conducting business in Australia will increase demand for prestige property.

"The government expects over 700 families to take up this offer, which will have huge flow effect for our property market," Pallier says.

"We expect families will buy real estate, a car, furniture and will likely educate their children here. I think it could bring up to $10 billion in the first few years."

Perth real estate agent William Porteous says he isn't expecting a boost from foreign investors, but a willingness by vendors to sell has increased sales. Porteous Property International cleared more than $30m of property worth between $2m and $5m last weekend. "The mood has changed in Perth; people who were once too frightened to put their hands in their pockets are now beginning to realise if they don't buy now they could miss the boat," he says.

However, unlike Sydney, Porteous says the majority of sales were from couples looking to downsize or families looking to upsize, rather than investors. After an oversupply of property during the mid-2000s, southeast Queensland's prestige market is also at a turning point, according to Brisbane real estate agent Patrick Dixon. He says 2013 will be a good year for buyers to get their hands on what was once considered out-of-reach property, as people buy at the bottom of the market.

For the original post visit: http://www.theaustralian.com.au/life/prestige-property/prestige-property-market-looks-good/story-fn6njxlr-1226525997434

REAL ESTATE: Good and getting better

KENNEBUNK – The consensus on the real estate market in the Kennebunks and Arundel: Things have improved, but there’s still a ways to go – and everyone has their eyes on Nov. 6.

“The election will have an impact – people are kind of hanging and waiting to see what happens there,” said Heidi Maynard of Pack Maynard and Associates Real Estate in Kennebunk.

But overall, she described the market as “coming back.”

“Things are getting better,” she said.

Indeed, it’s a bright spot that appears to be reflected in the numbers. According to the Maine Real Estate Information System Inc., sales of existing, single-family homes increased 8.48 percent, year-over-year, in September, while the median sale price rose 6.92 percent. And York County, specifically, increased its units sold in the third quarter (July to September) by 11.78 percent – from 501 to 560 – in 2012 over 2011, while the median sale price rose 8.57 percent – from $210,700 to $228,750 – during that same period.

“I have seen a big improvement,” said Gail Arnold, broker and owner of Kennebunk Beach Realty Inc.

Overall, local sales are up about 10 to 15 percent over last year, estimated John Downing of Downing Real Estate Agency in Kennebunk, noting that there are a lot more offers coming in.

Still, he was more tempered in his assessment.

“It doesn’t mean it’s a good market,” he said. “It has picked up a little bit. It’s much better than it was last year, (but) nowhere near where it was at the height of the market.”

He also has a bit of a “wait and see” attitude in regard to the election.

“It all depends on banking and banking regulations – it’s been tightening up so much that nobody dares to do anything,” he said. “This is a big election for people in banking and small businesses.”

Still, Maynard stressed that the area hasn’t been as hard hit as many others have been. Overall, there have been fewer foreclosures and short sales than there have been elsewhere.

“Even in the worst times, there was still a lot of real estate done here,” she said. One of the biggest advantages: Mortgage interest rates, which remain at record lows, hovering around 4 percent for many months now.

Arnold, who was licensed in 1980, noted that “rates are at a point that those of us who have been in the business a while thought we would never, ever see.”

Ultimately, the rates have allowed more buyers into the market – many of whom would have otherwise rented.

In some cases, Arnold said, “buying has gotten more affordable than renting.” Maynard agreed that today’s market is more diverse.

“The low interest rates have opened up the market to a lot of people,” she said. “We’re seeing lot of young buyers coming to the market. People realize we’re at the bottom, and that this is the time to buy.”

But also, many empty-nesters and older baby boomers are downsizing, she said. All told, Maynard described the market this year as “busy,” “very robust” -– and even “fantastic.”

“Inventory’s way down, it’s come down substantially,” she said.

Much of the action has been on the upper end (properties priced $800,000 and above) and the lower end, with the mid-range market (properties priced between $600,000 and $800,000) being the “most sluggish,” she said.

Arnold, meanwhile, noted that the most attractive properties have been those that are energy efficient and updated. Condos have also done extremely well; and for second-time buyers, waterfront homes or homes with water views have been particularly popular.

And looking ahead?

“All indications are that the recovery we are in will continue, so I believe 2013 will be even better” than 2011 and 2012,” Arnold said.

Maynard went one better.

“I think 2013’s going to be a fantastic year for everybody,” she said.

Source: http://www.keepmecurrent.com/the_village/news/real-estate-good-and-getting-better/article_66b9fba6-238b-11e2-ae3e-001a4bcf887a.html

Saudi real estate market poised for new boom

The real estate market in Saudi Arabia is on the verge of expansion because of a projected drop in land prices and a new mortgage law, experts told Al-Shorfa.

New programmes and the new mortgage system -- approved by the cabinet in July and expected to take force in the next few weeks -- will contribute to decreased land prices, realtors said.

Land prices are expected to drop by 20%, especially in the central, eastern and western regions, according to realtors. Residential land prices in cities will vary based on several indicators, including services, employment opportunities, and the level of development.

Abdullah al-Shaal, owner of a real estate development company in Jeddah, said many Saudis who do not own a home have been waiting for a favourable opportunity to achieve "the dream of a lifetime".

"The main reasons for the decline in the rate of home ownership are rapid population growth and the influx of foreign workers into the country," he said. "The drop in land prices will relieve the housing problem, which has become an obsession for many people."

Residents in low and middle income brackets are generating most of the demand as they are unable to obtain home loans from the bank and spend a large portion of their income on rent, according to Khalid al-Shihri, who manages a real estate company.

"The migration from the countryside to the cities intensified the pressure and drove land and housing prices higher. The percentage of Saudis living in cities increased from about 48% in 1974 to 85% today," he said.

It is vital to develop programmes that encourage people to stay in their areas to stem internal migration and correct imbalances in the real estate market, he said.

"The [new] mortgage system and the trend among developers towards building low-cost homes will contribute significantly to solving the housing problem," al-Shihri said.

He said reducing the gap between supply and demand for housing requires that the Ministry of Housing implement various housing programmes that stimulate home purchases. Construction boom

In March 2011, King Abdullah bin Abdulaziz established the Ministry of Housing to address housing shortages in the kingdom. He raised the value of mortgages provided by the Real Estate Development Fund from 300,000 riyals ($80,000) to 500,000 riyals ($133,000) and pledged to spend more than 250 billion riyals ($66.7 billion dollars) to build 500,000 new residential units.

A week after the king's announcement, Banque Saudi Fransi said the kingdom needs 275,000 new housing units a year through 2015 to meet growing demand, estimated at 1.65 million homes.

Essam al-Borai, an economics specialist with the Bin Mahfouz Group, said the kingdom is poised for a major construction boom that will meet this demand.

"The long-awaited mortgage law will bring about a huge leap in this massive market. The kingdom controls 33% of the real estate market in the Gulf region in 2012," he said.

Al-Borai said those working in the real estate sector should be made aware of the new incentives as the field is reporting an increase in investment.

He said safeguards related to real estate investment transactions must also be upheld.

"It is important to have an arbitration mechanism in place for resolving contentious issues that may arise in order to protect capital investments from being frozen," al-Borai said.

Residents welcomed the fact some real estate developers are seeking to build low-cost homes to meet the needs of millions of Saudis.

Ahmed al-Ari, an elementary school teacher in Jeddah, said he has dreamed of owning a private home for 20 years but has not been able to realise it because of the high price of real estate.

"The approval of the new mortgage law and the new trends in the real estate market offer us some hope of owning a private home and breaking free from the burden of rent, which has consumed an enormous portion of our money over the years," he said.

Source: http://al-shorfa.com/en_GB/articles/meii/features/2012/09/04/feature-03

China's home prices unlikely to see strong rebound

BEIJING, Sept. 4 (Xinhua) -- China's home prices are not expected to rebound during the upcoming sales season, despite a recent moderate pick-up, analysts have said.

The country's real estate market heated up in the late summer due to demand from first-time buyers. Data from the China Index Academy (CIA) showed Monday that average new home prices in 100 major Chinese cities rose 0.24 percent from July to August, marking the third consecutive month of rising prices.

With the government working to boost supplies and market demand becoming more modest after a buying spree that has lasted since March, property prices will remain stable in September and October, the traditional peak season for home sales in China, said Gu Yunchang, deputy head of the China Real Estate and Housing Research Association.

The Chinese government has been building more houses for low-income families as part of its efforts to cool the market down, aiming to complete 36 million such units between 2011 and 2015.

Construction on over 21 million affordable homes started between 2009 and 2011, with nearly half of the projects having already been completed, Premier Wen Jiabao said during an inspection tour last week in Beijing's neighboring city of Tianjin.

"Increasing the housing supply will be key in curbing real estate prices," Gu said, adding that market demand will grow weaker, as price-sensitive first-time buyers will postpone purchase if prices soar beyond reach.

Home transactions dropped after prices climbed during the March-July sales boom, which was fueled by the central bank's moves to boost lending and buoy the slowing economy.

In contrast to a moderate price rebound in August, Beijing saw transactions of commercial homes down 12.4 percent from July to August, with sales of used homes down 20.1 percent, municipal government data showed.

The figures indicate that the property market has cooled somewhat within a rather short time, said Chang Qing, an analyst at Homelink, a Beijing-based real estate agency.

Chang also cited CIA data as saying that fewer cities recorded price gains in August, adding that the growth rate for average home prices in cities surveyed from July to August was smaller than that of the previous month, both of which can be seen as signs of cooling.

However, Zhang Dawei, chief market analyst at Beijing-based Zhongyuan Real Estate, said both real home transactions and prices are likely to go up further during the next two months.

"Increases in transactions and prices will depend on whether there will be new tightening measures and how strong they are," Zhang asserted.

The market may still continue its rally in the short-term, since property developers have been destocking. In Beijing, housing supplies have dropped to a record low of 77,000 units as a result of increased sales and a decrease in the amount of land reserved by developers for new projects, Zhang noted.

Cash-strapped real estate developers have cut land purchases in light of government control measures, such as bans on third-home purchases, introduced since 2010 to contain home prices.

Data from the Ministry of Land Resources showed that only 47,200 hectares of land were sold to property developers in the first half, accounting for 29.6 percent of the full-year land supply target set by the government.

Source: http://news.xinhuanet.com/english/indepth/2012-09/04/c_131827106.htm