Foreign investor interest in U.S. real estate grew sharply in the fourth quarter of 2009, according to the latest survey by the Association of Foreign Investors in Real Estate. More than half of the respondents (51%) believe U.S. real estate provides the best opportunity for capital appreciation, up from 37% in 2008 and 26% in 07. The United Kingdom ranks second for expected capital appreciation with votes from 30% of respondents, followed by China with 10%.
Washington, D.C., & New York City rank highest among U.S. cities thought to offer the best investment opportunities, followed by San Francisco, Boston and Los Angeles. Two thirds of respondents say they plan to increase their investment in U.S. properties in 2010, and a majority of them say they prefer multifamily properties over other types.
Before placing your house on the market, make as many repairs and improvements as you can. It will be worth it. “New” and “just replaced” are the magic words to attract home buyers.
Steam clean or replace carpet, fix loose door knobs and railings, make sure windows and doors open and close easily. Apply a fresh coat of paint where needed.
But you may find yourself deliberating over larger problems. Should you replace the crumbing driveway? Buy new kitchen appliances? Refinish the floors? Big repairs cost more time and money. You could simply disclose the problem and let the buyer deal with it.
On the other hand, the better condition your home is in, the wider the group it will appeal to. When making a decision of this kind, consider that repairing the problem could also result in a higher sale price. The best thing to do is start making these big repairs a year or two before you plan to move. Then you get to enjoy the results too!
Two top housing economists provided some encouraging news about the housing market during an economic session at the NAR Midyear Legislative Meetings and Expo this week. Both NAR chief economist Lawrence Yun and Moody’s Economy.com chief economist Mark Zandi agree that job creation is the key to a sustained economic and housing recovery, with job creation expected later this year, but they differed on their views about how foreclosures will impact home prices.
Yun says the homebuyer tax credit added 1 million buyers, reduced inventory by 1 million units and reduced the housing supply by several months, which corresponded to a positive impact on home prices of 5 percent to 8 percent. “Stabilizing home prices will limit future foreclosures,” says Yun. He predicts slightly stronger demand for housing and a fairly even level of foreclosures entering the pipeline this year before easing in 2011. “We expect distressed sales to account for 30 to 40 percent of transactions for the remainder of this year,” he says.
Zandi also forecasts improved demand for housing, but expects foreclosures to rise later this year before easing in 2011. He also says home prices may weaken further. “There will be no real price growth in 2010 or 2011. Whether home prices weaken is unclear, but it will take two more years to work off excess housing inventory at the current sales pace. Of course, if demand picks up, it would take less time for prices to rise,” Zandi says.
from CRS Member Connect newsletter
Facing the possibility of foreclosure, California homeowners may be hit with more than just losing their homes. Due to a loophole in state law, they also can be sued by their lender. To prevent this, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) is sponsoring Senate Bill 1178 by State Sen. Ellen Corbett (D-San Leandro), which will extend anti-deficiency protection for consumers who have refinanced their original mortgage loans and now are facing foreclosure.
KEEP THIS IN MIND
• Currently, if a homeowner defaults on a mortgage used to purchase his or her home — known as a “purchase money mortgage” — the homeowner’s liability on the mortgage is limited to the property itself. Unfortunately, the original law did not extend the purchase money protection to loans that refinance the original purchase debt, even if the refinance only was to obtain a lower interest rate.
• Californians who refinance a property currently do not have protection if they default on a mortgage greater than the property’s value. Called a “deficiency” liability, under current California law, the lender can sue the former homeowner for the amount of the deficiency even after taking back the property.
• Recent years of low interest rates and aggressive marketing campaigns by lenders have induced tens of thousands to refinance mortgages. Few homeowners realized that by refinancing their mortgage, they were forfeiting their protections and now are personally liable.
• C.A.R. created a video detailing Senate Bill 1178. The video can be viewed here.
from CAR’s Market Matters e-mail update.
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in March but not closed, rose 5.3 percent from the previous month and was 21.1 percent higher than March 2009, NAR reports. This follows an 8.3 percent monthly increase in February.
NAR chief economist Lawrence Yun says the rise in pending home sales is a result of better housing affordability and the homebuyer tax credit, but he expects sales to decline in the months ahead following the expiration of the tax credit. “Clearly the homebuyer tax credit has helped stabilize the market. In the months immediately following the expiration of the tax credit, we expect measurably lower sales. Later in the second half of the year and into 2011, home sales will likely become self-sustaining if the economy can add jobs at a respectable pace and from a return of buyer demand as they see home values stabilizing,” Yun says.
The index rose in three of the four regions from February to March, and all four regions year-over-year. In the Midwest, it increased 1.2 percent in March from the previous month and was 18.5 percent higher than a year ago. In the South, the index jumped 12.7 percent in March and was 28.3 percent higher than March 2009. Pending sales in the West rose 1.9 percent during the month and were 8.8 percent above a year ago. But pending sales in the Northeast declined 3.3 percent in March, although they were 27.2 percent higher than a year ago.
Housing starts rose to a seasonally adjusted annual rate of 626,000 in March, 1.6 percent higher than the 616,000 estimated in February and 20.2 percent higher than the 521,000 estimated a year ago, according to the latest figures compiled by the U.S. Commerce Department.
Permits for new residential construction rose 7.5 percent in March to 685,000 from 637,000 in February, and they were 34.1 percent higher than the March 2009 estimate of 511,000.
Builder confidence rose four points this month to reach its highest level since September 2009, spurred by increased activity from buyers, according to the latest NAHB/Wells Fargo Housing Market Index. “An expected surge in buyer activity leading up to the expiration of the homebuyer tax credits and a gradually improving economy helped to brighten builders’ view of the marketplace in April,” says NAHB chief economist David Crowe.
However, builders are cautious about the next six months as several issues could continue to drag on the housing market, such as credit shortages, high inventory of foreclosures and concerns about the job market.
from CRS Member Connect e-mail newsletter
Ironically, spring/summer cleaning can be hazardous to your family’s health – and to the environment. Many common household cleaners contain alcohol, ammonia, bleach, formaldehyde and lye. Some of these ingredients have been linked with neurological, liver and kidney damage, asthma and cancer. Avoid them by making your own green cleaners. Here are some recipes for simple, effective cleaners:
*Window cleaner; add 2 ounces of vinegar to a quart of water in a spray bottle.
*Streak-free glass cleaner; Blend 2 ounces of vinegar, a spoonful of corn-starch and a quart of warm water. Apply with a sponge and wipe dry.
*Rust remover; Use vinegar to remove rust and other mineral deposites on nuts and bolts.
>> this just in;
C.A.R. Green Tip of the Week: Confused about plastics?
Experts have reached a consensus and recommend consumers avoid these varieties of plastics–identified by a triangle and number on the bottom of most containers–for the following reasons:
#3 Polyvinyl Chloride (PVC) commonly contains di-2-ehtylhexyl phthalate (DEHP), an endocrine disruptor and probable human carcinogen, as a softener.
#6 Polystyrene (PS) may leach styrene, a possible endocrine disruptor and human carcinogen, into water and food.
#7 Polycarbonate contains the hormone disruptor bisphenol-A, which can leach out as bottles age, are heated, or exposed to acidic solutions. Unfortunately, #7 is used in most baby bottles and five-gallon water jugs and in many reusable sports bottles.
Feng Shui is an ancient Chinese belief in energy forces called “chi”. These forces can be found anywhere, even inside our bodies, and can bring happiness, prosperity, love, even good luck.
According to the Chinese, there are three types of luck: Heaven luck, Mankind luck, and Earth luck. Of these, Earth luck is most influenced by the principles of Feng Shui. The following Feng Shui symbols are thought to attract positive chi, bringing good luck to you:
- Bamboo – is a very strong plant and thrives I most conditions, therefore it is thought to be lucky.
- Cats – usually displayed in twos, one cat has its left pay up and is smiling; this cat is meant to invite good fortune. The other cat has its right paw up and has a warning expression which protects you from evil.
- Dragons – are a traditional Chinese symbol of good luck. Dragons are powerful, but do not place a dragon facing out a door or window or your luck will leave.
- Elephants – are good luck when their trunks are upturned because this indicates an announcement of happy news.
- Tigers – like dragons, tigers are also symbols of luck and power. The best place to put a tiger is in an office or study, but don’t use one with its mouth open or in an attack position or it can scare you luck anyway.
You know that when you are seeking a mortgage you should shop around for the best rate. But because interest rates fluctuate, it is a good idea to consider locking your rate. A rate lock, also called a “lock-in”, is a lender’s guarantee that you will get a specific interest rate and number of points if you purchase a home within a certain period of time.
If you do not complete your home purchase or refinancing agreement before the lock expires and interest rates happen to rise, you will pay the higher rate. If interest rates happen to drop during the lock period, however, you cannot take advantage of them unless you rewrite the lock and pay an additional cost.
Before locking in a rate, keep these tips in mind:
- Get your guaranteed rate lock in writing.
- Lock in as many of the costs as you can, including the interest rate and points.
- Shop around. Examine both the terms of the contract and its cost. Some lenders charge an up-front fee, while others offer the service at no cost.
Here are a few tips you can do to help in the quest to ‘go green’.
1. Reduce, recycle, reuse, and buy recycled. We use a ‘blue’ bin and recycle paper and bottles & cans.
2. Turn off your computer & lights when not in use.
3. Recycle ink cartridges.
4. Use you notepad wisely. Use the entire page, then turn it over and use the other side.
5. Watch what you print.
6. Install motion sensor lights.
7. Buy “energy star” office equipment.
8. Open the blinds. Turn down the lights and let the sun shine in.
9. Recycle old cell phones.
10. Do it yourself. If the office doesn’t recycle, you can lead the way.
Foreign investor interest in U.S. real estate grew sharply in the fourth quarter of 2009, according to the latest survey by the Association of Foreign Investors in Real Estate. More than half of the respondents (51%) believe U.S. real estate provides the best opportunity for capital appreciation, up from 37% in 2008 and 26% in 07. The United Kingdom ranks second for expected capital appreciation with votes from 30% of respondents, followed by China with 10%.