A recent trend report from HousingPulse indicates that investors are NOT the driving force in the current housing surge. Results from the Campbell/Inside Mortgage Finance HousingPulse Tracking Survey actually show first-time homebuyers and current homeowners are leading the market in 2013.
This presence of non-investor homebuyers is strengthening the market for non-distressed properties. The spring/summer season of 2013 should prove to be remarkably strong says the report.
HousingPulse's data indicates that the current homebuyers carry a 42.2% market share this past March. This is down from the fall numbers, but overall up in the year-over-year statistics.
The media continues to gives credit to the investors for driving the recent heightened activity; however, their share according to the report indicates only 21.8% market share in March 2013. While looking at non-distressed property trends, investor shares are even less at 13.3% for the same time frame. Current homebuyers had 50% market share and first-time homebuyers 36.8%.
Looking at DISTRESSED property trends for the same report, HousingPulse indicates the share of home purchases fell to 35.6% in March but peaked at 36.2% in March.
*The Campbell/Inside Mortgage Finance HousingPulse Tracking Survey is based on a national survey of about 2000 real estate agents each month and provides up-to-date intelligence on home sales and mortgage usage patterns throughout the country.
Much of the country is seeing a lack of inventory in the non-distressed property segment, but with a strong sale market. Additional factors contributing to the strength of the market, is the average time-on-market for non-distressed properties. Numbers fell dramatically to 10.9 weeks on average, recorded the lowest since 2009 by HousingPulse.
Source: HousingPulse Update April 2013
Monday, August 5, 2013
Thursday, August 1, 2013
5 Ways to Beat Foreclosure!
In the news, there is talk of a housing recovery. Experts
feel more optimistic about the state of housing industry in America. However,
if you or someone you know is one of the millions of homeowners who is stuck
with a home on which you owe more than the property is worth, the feeling of
helplessness can be overwhelming and frustrating.
Many people don’t realize that just because they are in
danger of losing their home to foreclosure doesn’t mean they have to wait
around for it to happen. With help, they can take matters into their own hands.
1. Reinstatement
Was the reason you missed your payments temporary and now the issue has been resolved? If you can make a one-time payment that includes all missed payments, legal fees and late fees, you are eligible to be reinstated back into your loan agreement.
2. Mortgage Modification
In some cases, you may be eligible to modify your loan in a way that reduces principle or lowers payments. Some of these programs vary from bank to bank, but there are also government-sponsored programs that are available to help homeowners in distress
3. Refinance
If you have enough equity in your home, refinancing may help you get back to more affordable payments. This will be determined by whether or not you are current on your loan, how much the property is worth and your credit.
4. Bankruptcy
In some cases, bankruptcy is an option. It may stop foreclosure and allow you to reorganize your debt. The stoppage is only temporary, however, and if you are still unable to make payments after the bankruptcy, the foreclosure will go through. It also makes a property much more difficult to sell.
5. Short Sale
You sell your property for less than it is worth and the bank, realizing that some money is better than no money at all, agrees to release you from your obligation to the remainder of the loan. In some cases, you are able to walk away from the loan clear of any obligation.
For more information regarding your options, contact me!
Rob Sales
Prudential Southeast Coastal Properties - Savannah, GA Associate Broker
Prudential Great Smokys Realty - Sylva, NC Broker
Monday, July 29, 2013
Why Homeowners are in the Driver's Seat
There are a number of trends affecting today’s market in
dramatic ways. Historically low interest rates are driving more and more people
to buy homes, but there are not enough homes on the market to meet that demand.
The result is that prices are increasing at an incredible rate.
This puts homeowners in an incredible position because you
have something that people want! Not only that, but these trends are unlikely
to continue at their current pace they for much longer. I want you to have all
the details about your situation so that you can make the most informed
decision.If you have been waiting to sell your home, especially if you or someone you know is having difficulty with their mortgage, it is time for you to start exploring your options because your home may be worth significantly more than you realize. The important thing is to know where you stand.
Do you know what your home is worth today? What are homes in the area selling for? These are all questions to which the answers have changed significantly in the last few months, and knowing your specific situation will help you make more informed choices.
Rob Sales
Smart Short Sales-Providing Dignified Solutions CDPE Advance, DPP, REO Specialist, CIAS
912-655-7674
Prudential Southeast Coastal Properties - Savannah, GA
Associate Broker
Prudential Great Smokys Realty - Sylva, NC
Broker
Monday, June 17, 2013
I Think You Can, I Think You Can!!!
When the financial crisis hit, the housing market changed dramatically. In less than a year, prices dropped and the equity that homeowners had in their homes disappeared, seemingly overnight. Many people who were ready to sell their homes at that time had to put those plans on hold until the market recovered. No one will tell you that today’s market has fully recovered, but there are positive changes underway, and the changes are happening rapidly. For home-owners who had to wait to sell their homes, today may be the day they were waiting for.
You may now have equity in your home
The reason is simple: Prices have increased dramatically. Many homeowners may not realize it, considering how far the real estate market fell when the housing bubble burst, but in the past 12 months, prices have actually rebounded at a fairly remarkable pace In fact, according to the Case-Shiller Home Price Index (a composite of prices in 20 major metropolitan area), prices rose 11.8% year over year in February of 2013. This is the biggest yearly increase in prices since November of 2005, when the market was almost at its peak. The result is that people are lining up to buy homes in today’s market. So, why have prices increased so quickly?
Fewer homeowners are in danger of losing their homes
When the housing crisis hit, the result was that mil- lions of people found themselves in danger of losing their home to foreclosure. The struggling economy created financial hardships for homeowners and many needed to sell their home as a result. However, because home values dropped so precipitously, they owed more on their mortgages than the homes were worth.
These homeowners are called "distressed" homeowners, and in recent years they’ve numbered in the millions. Today, however, these distressed homeowners may find themselves in a much better position.
According to the National Association of REALTORS, distressed home sales are at their lowest point since 2008, when the foreclosure crisis started. Since most of the distressed properties have been sold off, they are no longer having such an intense effect on prices. This means that non-distressed sellers today find themselves in a much better position than at any point since the housing crisis began.
Investors are buying as many homes as they can
Investors know that the fundamental rule to successful investing is simple: Buy something for less than what you can sell it for down the road. This is certainly true of real estate investing, and the decline in housing prices at the height of the housing crisis has resulted in investors coming out in droves and buying all the properties they can get their hands on.
And it isn’t just individual investors who are buying one or two properties. Large investment firms and hedge funds are buying up huge swaths of properties to take advantage of an unprecedented opportunity. Their intention is to rent out the properties to generate cash flow for themselves, but the result is that large quantities of these homes have been bought up by these investment firms, taking them off the market in bulk.
And it isn’t just individual investors who are buying one or two properties. Large investment firms and hedge funds are buying up huge swaths of properties to take advantage of an unprecedented opportunity. Their intention is to rent out the properties to generate cash flow for themselves, but the result is that large quantities of these homes have been bought up by these investment firms, taking them off the market in bulk.
There have been fewer homes built in the past 5 years than at any time in the past 50 years
Generally speaking, the real estate market needs about 6 months of inventory in order to keep up with normal supply and demand. This means there should be enough homes for sale that it would take 6 months to sell them all.
In today’s market, there is significantly less inventory than that. In fact, nationally there is about 4.7 months of inventory available. This number doesn’t tell the whole story, however. In some metropolitan areas, there is less than a month’s worth of inventory. There are even some cities that only have a few days of inventory for sale!
At the same time, more people want to buy homes today than at any time in the past 5 or 6 years. Interest rates are at near record lows and a new generation of homeowners is trying to buy their first home.
In today’s market, there is significantly less inventory than that. In fact, nationally there is about 4.7 months of inventory available. This number doesn’t tell the whole story, however. In some metropolitan areas, there is less than a month’s worth of inventory. There are even some cities that only have a few days of inventory for sale!
At the same time, more people want to buy homes today than at any time in the past 5 or 6 years. Interest rates are at near record lows and a new generation of homeowners is trying to buy their first home.
There are fewer homes to sell and more people who want to buy them. Make no mistake about it, today’s market is a seller’s market and people who sell their home today are in the strongest bargaining position in years.
Today’s market is a seller’s market
So, with fewer distressed homeowners driving prices down, investors buying as many properties as they can, and homebuilders just now ramping up to build new homes to meet the demand, prices have been increasing. For people who have waited to sell their home, this puts them in the driver’s seat.
Do you know what your home is worth today? Or what are homes in the area selling for? These are all questions to which the answers have changed significantly in the last few months, and knowing what your specific situation is will help you make more informed choices.
As a real estate agent in today’s market, I make it my business to have the most up-to-date information and can help you understand exactly what your current situation is. If you have been underwater, it is entirely possible you are not anymore. If you have been holding off until the market started to recover, that time is now.
Contact me today for a free valuation of your home and let me help you determine your best option. Arm yourself with information and make a more informed choice. It might just end up being an incredibly profitable decision.
Rob Sales, CDPE Advanced, CIAS, DPP
Thursday, June 13, 2013
Why people are lining up to buy your home!
Today’s real estate market is very different than it was a year ago.
Prices have increased rapidly over the past 6-8 months. In fact, the average
home has gone up over 10% in the past year, a rate that is expected to continue
for the foreseeable future. Low inventory combined with an increased number of
people wanting to buy means that sellers are in the driver’s seat in today’s
market.
I have a report which explains in detail why prices have gone up and
why your home might be worth more than you think! The report is entitled “Think
You Can’t Sell Your Home? Think Again!,” and I believe you’ll be surprised by
when you download and read the report. Once you are done, contact me today for
a free market analysis.
Rob Sales
Associate Broker, Prudential Southeast Coastal Properties, Savannah, GA
Broker, Prudential Great Smokys Realty, Sylva, NC
Tuesday, May 7, 2013
More Housing Investment Trend News
From CNBC, Diana Olick reports latest real estate investment trends. I am a Certified Investor Agent Specialist (CIAS) and can provide you with the tools and information whether you are looking to avoid foreclosure, or investing in the housing market. Foreclosure sales are on the rise and investors are waiting to pounce on the opportunity. Contact me for more information.
New Housing Barons Widen Their Sights and Bets
Published: Thursday, 2 May 2013 | 10:16 AM ET
By: Diana Olick
CNBC Real Estate Reporter
Hedge Funds As Landlords
Thursday, 2 May 2013 | 11:25 AM
ET
Hedge fund managers are shifting strategies to make more
money on foreclosures, reports CNBC's Diana Olick.
As home prices rise, there are fewer bargains in single family homes, but not
fewer investors. Their ranks and property portfolios continue to grow. Last
month Five Ten Capital, a Piedmont, California-based asset manager, inked a one
hundred million dollar deal with Deutsche Bank to open a
new fund to buy and manage single family rental homes, expanding Five Ten's
range to Texas and Missouri.
"Obviously, home prices are up, so did you miss an opportunity? Yes, you'd have been better off buying a year ago than today, but we think for the most part we are in the third inning of this housing recovery," said Rob Bloemker, Five Ten's CEO.
"Obviously, home prices are up, so did you miss an opportunity? Yes, you'd have been better off buying a year ago than today, but we think for the most part we are in the third inning of this housing recovery," said Rob Bloemker, Five Ten's CEO.
Unlike the "flippers" of the last decade, today's investors in single family
homes have a longer-term strategy. They buy largely with cash and seem intent on
growing their portfolios, rather than recycling them. While some credit these
bulk buyers with saving the housing market, they seem uneasy with that
characterization.
(Read More: Map: Tracking the US Real Estate Recovery)
"I think investor activity has accelerated the recovery, but I don't think investor activity is responsible for the recovery," said Rick Sharga of Carrington Mortgage Holdings, a Connecticut-based group that invests in distressed homes and distressed mortgages. "If all 10 billion dollars of investor-announced funding had been spent last year, what percentage of the $1.7 trillion in mortgages written would that have accounted for? It's a rounding error really."
But these investors did help to clean up much of the distress created by the housing crash, especially in the hardest-hit markets, like Phoenix, Las Vegas and parts of California. Investors still accounted for 53 percent of home purchases in Las Vegas in March, according to DataQuick. Multi-home buyers bought 647 homes in the Las Vegas area in March, which amounts to 14.4 percent of all homes sold—a 20 percent increase from March of 2012.
There had been concern that as home prices rose, these investors would dump their homes back onto the market, and reverse the recovery. That is not the strategy, at least not yet.
"Investors aren't going to dump a lot of properties into a market and run the risk of losing money or devaluating the rest of their portfolios," noted Sharga.
They may not be selling, but some are changing their strategies, as they search for higher yields.
"We're not buying a lot [of homes] right now. We think the market is a little bit too frothy. We're very, very particular about our model and what we will buy," Sharga said. "We've been very active in the non-performing loan market. We'll look at other trades that don't have same kind of high-volume competition that artificially drives up some of those prices."
(Read More: Map: Tracking the US Real Estate Recovery)
"I think investor activity has accelerated the recovery, but I don't think investor activity is responsible for the recovery," said Rick Sharga of Carrington Mortgage Holdings, a Connecticut-based group that invests in distressed homes and distressed mortgages. "If all 10 billion dollars of investor-announced funding had been spent last year, what percentage of the $1.7 trillion in mortgages written would that have accounted for? It's a rounding error really."
But these investors did help to clean up much of the distress created by the housing crash, especially in the hardest-hit markets, like Phoenix, Las Vegas and parts of California. Investors still accounted for 53 percent of home purchases in Las Vegas in March, according to DataQuick. Multi-home buyers bought 647 homes in the Las Vegas area in March, which amounts to 14.4 percent of all homes sold—a 20 percent increase from March of 2012.
There had been concern that as home prices rose, these investors would dump their homes back onto the market, and reverse the recovery. That is not the strategy, at least not yet.
"Investors aren't going to dump a lot of properties into a market and run the risk of losing money or devaluating the rest of their portfolios," noted Sharga.
They may not be selling, but some are changing their strategies, as they search for higher yields.
"We're not buying a lot [of homes] right now. We think the market is a little bit too frothy. We're very, very particular about our model and what we will buy," Sharga said. "We've been very active in the non-performing loan market. We'll look at other trades that don't have same kind of high-volume competition that artificially drives up some of those prices."
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Los Angeles-based Colony Capital, which boasts approximately ten thousand
single-family rental homes in its portfolio, had centered its investments
largely in the Southwest and West, but is now shifting to other markets.
(Read More: US Pending Home Sales Tick Upward in March)
"In terms of our mix, less is going to Arizona and California today," said Justin Chang a principal at Colony. "Our mix is increasing on east coast, Georgia, Florida, we're active in Texas. I think over time some of the early markets will become a smaller part of our overall portfolio."
Some investors are also starting to look at new construction, as home builders start to ramp up production again. The key is to find new product that is cheaper than replacement costs, which still is not that easy. So far investment has mostly gone only as far as distressed new homes, but as prices rise, that may change.
"On home building, there's a lot of chatter about that. We are in some conversations with builders," explained Chang, who admits the economics have not been compelling yet. "Over time you'll see more and more of these transactions, and we may do one as well."
Another potential strategy going forward is a consolidation, as investors turn away from distressed properties and focus on so-called "Mom and Pop" landlords, who may buy just one or two properties. There are an estimated 14 million single family rental homes owned by this cohort.
"If you think about all of the major institutions maybe owning 70,000 total homes compared to the market size of 14 million homes, the long term potential is enormous. Institutions are literally a fly on an elephant," said Aaron Edelheit, CEO of The American Home, an Atlanta-based company that owns and manages about 2,500 homes. "We may look back and realize that the REO [real estate owned] to rental space was only the foundation for an exponentially larger industry with institutions owning hundreds of thousands, if not millions, of homes."
(Read More: Next Boom? 'Spec' Homes Are Back)
There are 7.2 million more renters today than there were in 2004, and just 400,000 more homeowners, according to the U.S. Census.
Despite the recovery in home sales, the homeownership rate continues to fall, from an all-time high of 69.2 percent to 65 percent in the first quarter of 2013. As home prices rise and the employment picture improves, more people will come back to home ownership, and some of the new rental homes will inevitably be sold, but certainly not all of them.
"If you buy homes in areas with below-median income, I think the mortgage market is going to have harder time providing credit to these people, and it's going to take longer for that to recover," said Bloemker. "We think that these homes are more likely to be long term rentals, and those are likely to end up in the hands of institutional investors."
—By CNBC's Diana Olick; Follow her on Twitter @Diana_Olick or on Facebook at facebook.com/DianaOlickCNBC—CNBC's Stephanie Dhue contributed to this story
Questions? Comments? RealtyCheck@cnbc.com
(Read More: US Pending Home Sales Tick Upward in March)
"In terms of our mix, less is going to Arizona and California today," said Justin Chang a principal at Colony. "Our mix is increasing on east coast, Georgia, Florida, we're active in Texas. I think over time some of the early markets will become a smaller part of our overall portfolio."
Some investors are also starting to look at new construction, as home builders start to ramp up production again. The key is to find new product that is cheaper than replacement costs, which still is not that easy. So far investment has mostly gone only as far as distressed new homes, but as prices rise, that may change.
"On home building, there's a lot of chatter about that. We are in some conversations with builders," explained Chang, who admits the economics have not been compelling yet. "Over time you'll see more and more of these transactions, and we may do one as well."
Another potential strategy going forward is a consolidation, as investors turn away from distressed properties and focus on so-called "Mom and Pop" landlords, who may buy just one or two properties. There are an estimated 14 million single family rental homes owned by this cohort.
"If you think about all of the major institutions maybe owning 70,000 total homes compared to the market size of 14 million homes, the long term potential is enormous. Institutions are literally a fly on an elephant," said Aaron Edelheit, CEO of The American Home, an Atlanta-based company that owns and manages about 2,500 homes. "We may look back and realize that the REO [real estate owned] to rental space was only the foundation for an exponentially larger industry with institutions owning hundreds of thousands, if not millions, of homes."
(Read More: Next Boom? 'Spec' Homes Are Back)
There are 7.2 million more renters today than there were in 2004, and just 400,000 more homeowners, according to the U.S. Census.
Despite the recovery in home sales, the homeownership rate continues to fall, from an all-time high of 69.2 percent to 65 percent in the first quarter of 2013. As home prices rise and the employment picture improves, more people will come back to home ownership, and some of the new rental homes will inevitably be sold, but certainly not all of them.
"If you buy homes in areas with below-median income, I think the mortgage market is going to have harder time providing credit to these people, and it's going to take longer for that to recover," said Bloemker. "We think that these homes are more likely to be long term rentals, and those are likely to end up in the hands of institutional investors."
—By CNBC's Diana Olick; Follow her on Twitter @Diana_Olick or on Facebook at facebook.com/DianaOlickCNBC—CNBC's Stephanie Dhue contributed to this story
Questions? Comments? RealtyCheck@cnbc.com
Friday, May 3, 2013
Latest Real Estate Trend: Hedge Funds Buying Forecloures
Check out these headlines from around the real estate world.
"The Next Big Thing on Wall Street"
"The business of buying foreclosed homes, renovating and renting them out is morphing from a largely mom-and-pop business into the next big thing on Wall Street.Blackstone Group LP has become the biggest U.S. investor in single-family rental homes by spending more than $1 billion since the start of 2012 to acquire more than 6,500 foreclosed homes ... fresh evidence that the purchase of foreclosed homes, which began as a mom-and-pop pursuit, is gaining legitimacy among the biggest private-equity firms."
"A Land Grab Unlike Anything We’ve Ever Seen"
"The Blackstone shopping spree, and those of half a dozen other big investment firms and hedge funds, could radically change the local home landscape, as big-money brokers compete with first-time buyers and mom-and-pop landlords over homes in tight supply.'It's a land grab unlike anything we've ever seen," said Peter Murphy, CEO of Home Encounter, the largest manager of rental homes in Tampa Bay. "You're going to drive through parts of town and all of it is going to be institutionally owned.'"
"Wall Street’s Hottest Investment Idea:
Single Family Homes"
"Large real estate investment trusts and private equity funds have generally focused on commercial real estate. That appears to be changing, and fast. Wall Street's hottest investment idea is now single family homes.""Faster Than Anyone Imagined"
"Legendary investor Warren Buffett seemed to fire a starter pistol last February when he said he would buy 'a couple hundred thousand' homes nationwide. It's hard now to find a private equity firm on the planet that doesn't have a strategy in this space. The market is growing faster than anyone imagined.""Investors Raise $8 Billion for Acquisitions"
"Larger Wall Street investors rushing into the market have raised between $6 billion and $8 billion, with the intent to acquire between 40,000 and 80,000 foreclosed homes in the months ahead."
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