- Mortgage Calculator
May
19
The two-level penthouse features glass walls that offer near-panoramic park views.
By Martha C. WhiteWhat real estate downturn? A two-level penthouse with sweeping views of Central Park just sold for more than $90 million — a record price for New York, according to the New York Times. At nearly 11,000 square feet, the apartment takes up the top two floors of the 90-story One57 building, which will include 92 residences and a Park Hyatt hotel when it opens next year.
At nearly 11,000 square feet, the apartment takes up the top two floors of the 90-story One57 building.
A spokeswoman for the building said the exact price was subject to a confidentiality agreement, but that it was less than $100 million. The penthouse was listed at $98.5 million when the buyer agreed to purchase it three months ago.
That unnamed buyer is getting a lot for the approximately $8,000 per square foot they agreed to pay. The six-bedroom, eight-bathroom penthouse includes four fireplaces, a “grand salon” with 23-foot ceilings and glass walls that offer near-panoramic park views. The kitchen has handmade cabinets, granite counters, Miele appliances and a 132-bottle wine refrigerator.
Developer Gary Barnett declined to identify the buyer to the Times, only specifying that they didn’t hail from Russia or any former Soviet state. He referred to them as a “very nice family” and said “people would recognize” them, according to the newspaper.
The six-bedroom, eight-bathroom penthouse includes four fireplaces, a “grand salon” with 23-foot ceilings.
Source: www.MSNBC.comMay
18
By Melissa Dittmann Tracey, REALTOR® Magazine
Foreclosures left abandoned for weeks, months, or years at a time can take a big toll on nearby home values. In the end, everyone in a neighborhood can feel the fallout.Can some of these foreclosures be saved? Investors in recent weeks are certainly snapping up foreclosures in bulk and turning them into profitable rentals. But what about some of the foreclosures left lingering … the ones that no one seems to want?
A Morgan Stanley’s analyst recently estimated that nearly 95 percent of distressed homes are in such bad shape and not even suitable for renting.
In Detroit, which has been plagued by foreclosed homes the last few years, firefighters there are proposing a controversial new plan: Let the homes burn.
If the vacant building is more than 50 percent on fire and does not pose a risk to nearby structures, they propose to let it burn, and in the meantime, help save the city money … and maybe save nearby property values too?
The proposal comes at a time when Detroit is experiencing a series of suspicious arson fires, which has led to dozens of vacant buildings and homes blazing.
“We are in no way looking to ‘let the city’ burn, this is about saving lives and money,” Donald Austin, Detroit’s executive fire commissioner, told WDIV-NBC in Detroit. “My department is strapped, the budget is strapped, and it’s time to look at a new way of doing things.”
The proposal still has to win approval from city officials. Some argue that the buildings are uninhabitable and will eventually be torn down so firefighters might as well let them burn instead of wasting more money trying to salvage the unsalvageable. But others argue the vacant homes should not be able to burn unless they are on a predetermined demolition list.
Detroit has an estimated 80,000 vacant homes and buildings, according to a new documentary, “Burn,” about Detroit firefighters. The fire department estimates that 40 to 60 percent of the city’s fires are in vacant structures too. Some of these fires are being caused from scrapping, in which thieves remove metal piping or other building materials from a home leaving it vulnerable to catching fire.
Several cities across the country aren’t leaving their eyesores to flames but instead a bulldozer to chip away at its deteriorating foreclosures. For example, this past summer, Bank of America announced it would donate some of its foreclosed home inventory–homes that were deemed uninhabitable–to local agencies for demolition in Cleveland, Chicago, Detroit, and other cities. Other banks announced similar steps. The land in many places will then be used for new development or open space.
“There is way too much supply,” Gus Frangos, president of the Cleveland-based Cuyahoga County Land Reutilization Corp., told Bloomberg News back in July. “The best thing we can do to stabilize the market is to get the garbage off.”
What do you think? Can a deteriorating home still be saved, or are they better left to demolition or ash?
Source: www.Realtor.org
May
17
Kiawah was named Coastal Living’s “Happiest Seaside Town” in America. Kiawah Island already holds the distinction of having the toughest golf course in America. Now, a magazine has put it atop another list.Coastal Living’s special 15th anniversary edition named the secluded barrier island the “Happiest Seaside Town” in the U.S. “If heaven had a ZIP code, it would have to be 29455,” the magazine said. “This exquisite barrier island is home to 10 miles of unspoiled fine-sand beach; wild-growing palmetto, oak and magnolia trees; a veritable Noah’s ark’s worth of mammals and rare birds; and 1,626 lucky residents.
With small-town charms and proximity to the gracious urbanity of Charleston, Kiawah makes the ideal possible: a vacation-like lifestyle with easy access to commerce and culture.” The magazine’s June issue, which hits newsstands Friday, named 15 coastal communities to its first list of “Happiest Seaside Towns” in America. “These towns boast a blend of such criteria as sunny days, walkable neighborhoods, easy commute times, healthy beaches and more — plus that indescribable coastal vibe,” Coastal Living Editor-in-Chief Antonia van der Meer said.
The magazine, an entity of Time Inc. with an audience of 3.9 million, selected the towns from the “Dream Towns” featured in the magazine over the past 15 years. It also placed a call for entries on social media channels. Additional factors included ranking on the Gallup-Healthways Well-Being Index, percentage of sunny and clear days, healthiness of beaches, average commute times, walkability, school and crime ratings, education andfinancial security of the locals, geographic diversity, and “coastal vibe.”
Other towns on the list, in descending order, include Naples, Fla.; Sausito, Calif.; Lake Bluff, Ill.; Tiburon, Calif.; Laguna Beach, Calif.; Half Moon Bay, Calif.; Chatham, Mass.; Jupiter, Fla.; Lahaina, Hawaii; Marblehead, Mass.; Stinson Beach, Calif.; Cohasset, Mass.; Duxbury, Mass.; and Solomons Island, Md.
Source: www.PostandCourier.com
Reach Warren L. Wise at 937-5524 or twitter.com/warrenlancewise. .
May
15
Home prices continued to fall in most metro areas over the 12 months that ended in September, even as more houses were sold, according to the National Association of Realtors.Nationally, the median price of a single-family home fell 4.7 percent in the third quarter of 2011, compared to the third quarter of 2010, the Realtors say. Half of the homes sold in the United States cost more than $169,500 from July through September this year, down 4.7 percent from the median price of $177,800 in the third quarter of 2010.The Realtors count prices on home resales in 150 metropolitan areas from Abilene, Texas, to Youngstown, Ohio, and from Honolulu to Portland, Maine. Prices went up year-over-year in 39 of those metro areas, and fell in the other 111.
While median home values fell in three-fourths of markets, the number of houses sold was up in all 50 states, says Lawrence Yun, the Realtors’ chief economist. Nationally, the sales pace rose 17 percent in the third quarter, compared to the same period a year earlier. “The good news is inventory levels have been trending gradually down,” Yun says.
Prices fell by double-digit percentages in the 10 coldest housing markets, led by Mobile, Ala.
Top fallersMobile, Ala. -17.7 percent Phoenix-Mesa-Scottsdale, Ariz. -17.6 percent Allentown-Bethlehem-Easton, Pa.-N.J. -17.5 percent Salt Lake City -15.3 percent Gulfport-Biloxi, Miss. -12.7 percent Miami-Fort Lauderdale-Miami Beach -12.7 percent Rockford, Ill. -12.5 percent Virginia Beach-Norfolk-Newport News, Va.-N.C. -11.6 percent Tucscon, Ariz. -11.5 percent Akron, Ohio -11.4 percent The markets with the fastest-falling prices include some major metropolitan areas, such as Phoenix, Miami-Fort Lauderdale and Virginia Beach, Va. By contrast, the places where prices are rising tend to be smaller metro areas.
Top risersGrand Rapids, Mich. 23.7 percent South Bend-Mishawaka, Ind. 19.8 percent Palm Bay-Melbourne-Titusville, Fla. 17.7 percent Youngstown-Warren-Boardman, Ohio-Pa. 13.1 percent Green Bay, Wis. 12.6 percent Canton-Massillon, Ohio 11.6 percent Peoria, Ill. 11.1 percent Binghamton, N.Y. 10.6 percent Jackson, Miss. 7.6 percent Spartanburg, S.C. 7.4 percent Yun says about 30 percent of home sales in the third quarter were “distressed” — that is, they were short sales or foreclosures. These homes typically sell at about a 20 percent discount, Yun says.
Housing economists say homes have become more affordable in the past few years, but they say too many would-be buyers can’t take advantage of the improved affordability.
Source: www.BankRate.com
May
14
Just as the spring selling season is nearing, there are some encouraging signs that it might be time for buyers to dip their toes in the housing pool again.Pending sales are up, inventory is down a
nd some economists are predicting an end to the housing crash this year. What does this mean for home shoppers? How should it shape their strategy? We’ll ask the experts to weigh in.In this installment of Buying Advice, we’ll also look at how best to navigate the purchase of a short sale. We asked our readers who have bid on these properties to share their experiences and advice, and we consulted a short-sale negotiator for her tips on landing one of these distressed bargains.
What should buyers expect this spring?
Falling home prices have made most buyers understandably nervous about pulling the trigger on a purchase. Why buy before the market hits bottom, right?So why should buyers get off the fence?
The good news is there’s really not much further to fall, says economist Paul Dales of Capital Economics. Case-Shiller’s report showed prices dropping faster at a time when housing prices typically do decline. Prices continued to drop at a slightly faster rate at the end of the year, but Dales says they won’t be dropping much longer.
“There are compelling reasons to believe that the end of the housing crash is finally in sight,” Dales says.
That’s because housing prices — now back at 2002 levels (2000 if you adjust for inflation) — are now below “fair value,” or what market observers consider justified relative to incomes and market demand. Home prices are 10% below rents and 24% below disposable per-capita income.
The economy is stronger, banks are more willing to lend and mortgage rates are still hovering near historic lows.
And there are already signs that demand is coming back. Contracts to purchase existing homes neared a two-year high in January, rivaling the period before the expiration of the first-time homebuyer tax credit, according to the National Association of Realtors. Pending sales increased 2% in January over the previous month and 8% over January 2011. That figure also suggests that home sales will have increased again in February after ticking up in January.
That’s what agent Jessica Riffle Edwards says she is seeing in her Wilmington, N.C., market. “My company had 200 more contracts for over $28 million more … this January versus January 2011,” says Edwards of Coldwell Banker Sea Coast Realty. She says she is once again seeing multiple offers for properties at different price levels.
Signs also indicate that a fair amount of excess inventory of housing has been wrung out of the market in the past year, which is good news for sellers but could mean buyers have a little less to choose from and a little less authority.
The inventory of existing homes for sale declined 21% in the year ending in January, bringing the supply to 6.1 months, the lowest level since April 2006. Of course, analysts say this not only was a matter of buyers snapping up foreclosure bargains but also had a lot to do with people taking homes off the market because of sluggish demand and falling prices.
More houses should hit the market in spring, analysts say, including a large number of bank-owned, or REO, properties that were held up in processing last year. With these distressed properties padding supply, prices should remain low for buyers this season.
Moreover, 51% of agents recently surveyed by Coldwell Banker said that sellers are more willing to price their home competitively this year.
Dales, for one, says he doesn’t expect “significant and sustained” price increases until 2014 at the earliest.
The good news is that most buyers probably won’t lose much equity with a spring purchase. If you’re one of the millions facing rising rents, buying could be a smart move, provided you’re willing to stay in the house for a while.
Source: www.MSNRealEstate.com
May
11
A federal judge granted final approval to a landmark $26 billion settlement over foreclosure processing errors, clearing the way for the nation’s five largest lenders to begin unraveling aid to home owners. The settlement includes guidelines for banks in compensating home owners who may have been wrongfully foreclosed upon as well as mortgage modifications — including principal write-downs — of up to 1 million home owners.The settlement was first announced more than a month ago but awaited a judge’s final approval. The settlement is between the nation’s five largest mortgage lenders and the attorneys general of 49 states and the District of Columbia. The five lenders part of the settlement are Bank of America, Citibank, JPMorgan Chase, Wells Fargo, and Ally Financial.
Here’s a breakdown of how the settlement money will be allocated:
- At least $17 billion will go toward modifying mortgages of delinquent borrowers. The modifications may include principal reductions to mortgages of up to $100,000 or more for 1 million home owners who are underwater or delinquent on their loans.
- About $3.7 billion will go toward refinancing mortgages for home owners who are current on their payments. This aid is estimated to help about 750,000 home owners.
- $5 billion will go toward banks’ paying fines to the states and federal government for the foreclosure errors. A portion of that will go to funding compensation to home owners who lost their homes to foreclosure due to errors. They stand to receive payments of $1,500 to $2,000.
The banks have also agreed to adopt stricter standards in processing foreclosures to avoid future errors.
As long as the banks abide by the terms of the settlement, they will have immunity from future claims by the state governments for wrongdoings in the processing of foreclosures.
Oklahoma is the only state that did not participate in the settlement agreement. In early February, the state reached a separate agreement with the nation’s five largest lenders for an $18.6 million settlement.
Watch this video to get more info on the mortgage settlement.
Source: “Court Approves $26 Billion Foreclosure Settlement,” CNNMoney (April 6, 2012)
May
10
What Buyers Often Overlook in Home Purchases
Thursday |
While many buyers may be swayed by the home’s appearance, financing, and location when choosing a home, housing experts say they often overlook other important factors that may keep them happy for years to come with their home purchase. A recent article at U.S. News & World Report lists tips for those often-forgotten aspects of home ownership. Here are some of those overlooked aspects:
- Zoning of nearby areas: What you see today may not be what you see a few years from now. Communities’ and neighborhoods’ landscapes can drastically change in a few years. And while some of these changes may be good — such as the addition of a nearby recreation park or school — some may be viewed as a negative, like a new highway overpass behind the property, the article notes. By reviewing upcoming plans and existing zoning at the city’s urban development department, home buyers can get a better idea of what the future may hold for the surrounding area of the neighborhood they choose.
- Remodeling rules: Some community associations may set limitations on what you can do to property, particularly if the buyer ever wants to make exterior changes like adding a garage or guest house. Purchasers who are looking to have a house grow with their family’s needs through the years may want to investigate any such rules beforehand to make sure that they’ll be able to add onto their home as needed.
- Impact of crime rate: Home purchasers may be concerned about making sure their new home falls in a low-crime-rate area but they may fail to realize how it can also impact their monthly budget. For example, “living in a high-risk neighborhood can send monthly bills upwards, like inflated auto insurance premiums,” the U.S. News & World Report article notes.
Source: “4 Not-So-Obvious Things to Research Before Buying a Home,” U.S. News & World Report (May 2, 2012)
May
7
This week in celebrity real estate, Barry Manilow and Ryan Seacrest re-list their homes, and the home that billionaire Howard Hughes crashed his plane into is on the market.
Barry Manilow relists Malibu hideout with price drop
ZillowManilow’s Malibu retreat overlooks the Pacific Ocean.
Barry Manilow is back in the game — at Radio City Music Hall and on the Malibu real estate market.
Not bad for the spike-haired crooner whose decades of hit-making and stellar concert performances have earhed a loyal following.
The man who made “Mandy” — a love song about a dog — an indelible part of pop music has re-listed his contemporary-style home in Malibu for $6.95 million. That’s a pretty steep drop from the $10.9 million Manilow first listed the beachfront compound back in 2009. But after a few years, four price drops and — most startling, and a health scare earlier this year — perhaps the singer is more eager to finalize a sale.The news of the Malibu re-list comes as Manilow was performing in New York, where he’s making up three shows that had been canceled in February due to health issues. According to reports, Manilow was still undergoing physical therapy after undergoing hip surgery.
Meanwhile, back in Los Angeles, Manilow’s Malibu home is ready for action, too. The property contains a main house with four bedrooms and walls of glass overlooking the Pacific Ocean. There is also a guest house across a private courtyard that offers additional living space. Manilow’s retreat has been noted for its high fences, assuring privacy, and its location on the uber-desirable Malibu Road.
ZillowThe oceanfront home has patios overlooking the beach.
See more photos of Barry Manilow’s home on Zillow.
Ryan Seacrest relists home for sale
ZillowThe listing for Ryan Seacrest’s home has only been released with one photo.
Call it a real estate rerun. TV and radio host extraordinaire Ryan Seacrest has placed his Los Angeles home back on the market — with a new price.
The “American Idol” host and television producer first listed the home in 2010 for $14.95 million. When it did not sell, Seacrest took it off the market for a year before relisting it recently for $11.985 million.
Not that Seacrest has had a lot of time to worry about the ups and downs of the market. In addition to everything else the amiable frontman does in Hollywood, he’s recently been added to the Olympic coverage team for NBC. The gig will take him to London for the 2012 Summer Games and add a few more dollars to his eye-popping annual income of $40 million. According to Forbes, Seacres rakes in more than Beyonce, Jennifer Aniston and Brad Pitt.
Seacrest’s home has some deep Hollywood pedigree. It was previously owned by Kevin Costner, from whom Seacrest purchased the home for $11.5 million in April 2006. The Mediterranean mansion has been featured in “Architectural Digest” and was decorated by famed designer Jeff Andrews.Property records show that the 5-bedroom, 4-bathroom, 8,172-square foot home in Hollywood Hills is certainly up to celebrity standards with posh amenities such as a swimming pool, guest house, detached garage, tennis courts, Los Angeles views and peaceful gardens.
If you want to see more photos of Seacrest’s home, you’ll have to get pre-approved by the listing brokerage Westside Estate Agency. Photos on their site are password protected.
May
4
“High gasoline prices provided the trigger that burst the [housing] bubble,” says JunJie Wu, an Oregon State economist and one of the authors of a new study that blames high gas prices as the main culprit for the housing crisis that started in 2007. “The theory recognizes the role of subprime mortgages and lax lending practices as inflating the housing bubble,” Wu says, but adds that a spike in gas prices was the “trigger.”
The new study, conducted by economists at University of California, Berkeley, and Oregon State University, attempts to pinpoint the cause of the housing crisis. The researchers say that while the housing market is blamed on initiating the 2007 financial crisis, researchers have found little consensus on what actually caused the housing crisis in the first place.
The researchers offer rising gas prices as the main culprit, noting that oil prices more than doubled between late 2006 and 2008 to $4.15 per gallon.
“The real estate mantra is ‘location, location, location,’” Wu says. “If you find yourself in a location that is far from work and transportation costs rise suddenly, that location can lower the value of your house.”
The researchers note that mortgage default rates were highest in commuter areas. Also, they say that low-income households and suburban homes located away from business centers were the most vulnerable in the housing crunch.
So will the recent rises in gas prices slow the recovery? Yes, say the researchers, “especially for communities tied to high transportation costs,” Wu says.
Source: “Some Economists Say High Gas Prices Triggered Housing Crisis,” RISMedia (April 8, 2012)
May
3
Low-ball Offers a Thing of the Past?
Thursday |
Last year, 10 percent of REALTORS® complained about receiving low-ball offers on listed homes — offers usually submitted by the buyer for 25 percent or more below the list price, according to a National Association of REALTORS® survey of its members. But that number has dropped drastically. According to a survey this March of 4,500 agents and brokers, no REALTORS® complained about low-ball offers. The main problem nowadays: The sudden drop in inventory of for-sale homes has led to fewer homes available to sell.
For home buyers who still think they have a chance of hitting it lucky with a low-ball offer, they’re finding in many markets that their offers are more often being rejected or countered closer to the original asking price, the Los Angeles Times reports.
West Neal with Prudential Olympia in Olympia, Wash., recalls a buyer who came in recently with an offer of $150,000 for a home listed at $250,000. Eventually, they negotiated a final sales price of $230,000, but it took a lot of negotiating on the agents’ parts to get the buyer higher.
“Low-ball offers are down a lot because we’re seeing more homes come on the market that are more realistically priced,” Neal told the Los Angeles Times.
Source: “Low-ball Offers Decline in Some Housing Markets,” Los Angeles Times (April 22, 2012)
South Carolina Real Estate Sales
