Buy-and-Rent Investments

January 21st, 2014

Is it  getting harder to make a money buying up foreclosures and renting them out?

The auction prices of homes climbed faster than rents in 2013, so returns on investment dropped, according to a report from CoreLogic. The practice is still profitable, but in many places not as much as it was. “It’s gotten so competitive that discounts at foreclosure are not where they were,” said Daren Blomquist, spokesman for RealtyTrac. “It’s harder for third party purchasers at auction to make a profit.” That’s a change from the past several years. In many cities where mortgage defaults spiked after the housing crash, investors were able to buy foreclosed homes at prices so low they were able to make big rental profits.

So what is an investor to do .. Work with your local Realtor that is focused on investors and investments optutnities. I often have other agents present investment optuntites to me before they go to market and often those same optuntities are sold before they go to market.

Yes investing in real estate can still be a good thing .. but all good things take a little extra effort.

 

GeorgiaOnlineHomes.com

GeorgiaOnlineHomes.com

Foreclosure Shadow Inventory Plummets to Lowest Level in 6 Years

January 10th, 2014
AILY REAL ESTATE NEWS | FRIDAY, JANUARY 10, 2014

Shadow inventory — also often known as “pending supply” — dropped to the lowest level since August 2008, to 1.7 million homes, CoreLogic reports in its latest report. The shadow inventory is down 24 percent compared to year-ago levels.

CoreLogic estimates shadow inventory by the number of properties that are seriously delinquent in foreclosure or held as REO by a mortgage servicer but not currently listed on the MLS.

“Nationally, loan performance continues to improve,” says Mark Fleming, chief economist for CoreLogic. “The rate of seriously delinquent loans is at a new five-year low, down 26 percent relative to a year ago. The shadow inventory continues to decline as well, decreasing at an average monthly rate of 46,000 units over the last year. Healthy market levels of shadow inventory are around 650,000 units, so there is more to be done, but the trend is in the right direction.”

In November, completed foreclosures were down 29 percent year over year. But foreclosures are still elevated by historical standards. In November 2013, there were 46,000 completed foreclosures, but between 2000 and 2006, completed foreclosures averaged 21,000 per month nationwide.

While the foreclosure pipeline is gradually clearing, many home owners across the United States are still struggling to make their payments. About 812,000 homes in the United States were in some stage of foreclosure in November 2013. The percentage is down by 34 percent from a year earlier when foreclosure inventory stood at 1.2 million.

The five states with the highest foreclosure inventories as the percentage of all mortgaged homes are: Florida (6.6 percent), New Jersey (6.5 percent), New York (4.7 percent), Maine (3.5 percent), and Connecticut (3.5 percent).

Source: CoreLogic

Half of All Homes Are Being Purchased With Cash

October 3rd, 2013

Half of All Homes Are Being Purchased With Cash

July 2013 Half of All Homes Are Being Purchased With Cash

“More than half of all homes sold last year and so far in 2013 have been financed without a mortgage, according to an analysis by economists at Goldman Sachs Group.” (source: The Wall Street Journal)

The large percentage of homes recently purchased with cash may be attributable to investors taking advantage of short-sale opportunities.

There’s no exact way to know who is responsible for all of these cash purchases, though they are likely to include some combination of investors, foreign buyers, and wealthy homeowners that don’t want to go through the hassle of getting a mortgage before closing on a sale. Mortgage lending standards have sharply tightened up since the housing bubble, with banks scrutinizing borrowers’ tax returns and bank statements to verify their incomes and the source of their down payment.

(source: The Wall Street Journal)

 

Time to Sell your Home

Time to Sell your Home

Government Shutdown effect on Real Estate

October 2nd, 2013

I know we may all be wondering how the Government shutdown may affect our daily Real Estate  business.  

Here are the basics:
-FHA and VA loans are currently experiencing a slight slowdown, as long as the shutdown is short lived
-USDA is not accepting new applications or issuing guarantees 
-The IRS and Social Security Administration are not able to produce tax transcripts and verifications, this is a standard guideline on all loans.  This is the largest factor that can affect the loan process.
– FEMA slowdown only affects map amendments or map issues
This shutdown will have an impact on real estate, for both home buyers and sellers.Although this will have an effect on pending home sales, buyers and sellers should not panic. Home buyers and sellers need to be aware of

 

With the shutdown, many government employees will now be on furlough, which affects the housing agency’s employees.

 

This means home buyers who have applied for an FHA, USDA, or VA loan will probably not be able to get it until the shutdown is over. Home sellers who have signed a contract with a buyer obtaining one of these loans may not be able to sell the home until the shutdown is over.

 

Delays will also occur because a percentage of IRS employees will now be furloughed. Mortgage companies use 4506 request forms to verify income from the IRS, and with the shutdown this part of the loan process will likely be delayed as well.

 

According to the HUD Shutdown Contingency Plan, as long as the shutdown is not for an extended period of time, there shouldn’t be too much of an impact on the housing market. However, if the shutdown lasts there could be a decline in home sales.

 

Fannie Mae and Freddie Mac backed mortgages are not be affected by the shutdown.

If you’re thinking of selling your home find out your home’s value free today 

 

Government Shutdown

Government Shutdown

#LawrencevilleGA #GwinnettRealestate  #GARealtor , #Home Buyers, #Lawrenceville, #Duluth, #Dacula, #N.E  Gwinnett Co, #RealEstate, #HomeSellers, #Realtor, #home values, #Gwinnett county home values #real estate

How does the rise in interest rates impact home affordability in and around Gwinnett county ?

September 23rd, 2013

Impact of Rising Interest Rates

Interest rates in Gwinett Co.  are still historically low, but both the Federal Reserve and Ben Bernanke have pretty much signaled the end to the Bar of Insanely Low Mortgage Rates. The Fed is about to reduce its program of bond-purchasing by the end of 2013, thereby suggesting the beginning of the end of the repressed interest rate. The interest rates of a 30 year fixed rate mortgage loan will hit the 4.25% benchmark rate before the end of July, and this rate will see a sharp rise from 3.5% in the month of May, 2013.

Keith Gumbinger, vice president at a mortgage information website, suggests that the quick rise in the mortgage rates might put a fork in the first time mortgage and the refinancing market. As the refinance applications account for two-thirds of the new loan activity, there’s going to be a steep change in the market.

The housing market in and around Gwinnett Co.  is going to see a lot of changes due to the sudden rise in the mortgage interest rates. Freddie Mac said that they’re about to release results of the latest Primary Mortgage Market Survey. According to recent reports, the interest rates on the 30 year term mortgage increased by 1.25 points and this is a sweeping rise that might affect the way in which the home buyers behave and those who are about to refinance their mortgage loans. And that is already dated news.

It is pretty obvious that the applications for refinancing, which accounted for 8 out of 10 new loan applications, were down by 10% from week to week soon after the mortgage rates started rising higher, according to reports by the Mortgage Bankers Association. Another separate survey by the same organization showed that the demand for mortgage loans for purchase of a new home was up by seasonally adjusted 0.9% and 3% from the same time in the previous year.

When the mortgage rates were down at their record low levels, home sales were also at peak levels in Gwinnett Co. and everyone declared that there had never been a better time to finance a home. Now that the mortgage rates are rising in and around Gwinnett Co., experts are wondering about the impact it might have on the housing market.

 

If you’re thinking of Buying home the time to act is NOW .. and Sellers dont wait to see if home values will continue to raise as buyers my not qualify for higher priced homes matched with higher interest rates and inventory could raise

 

Impact of Rising Interest Rates

Impact of Rising Interest Rates in Gwinnett Co

Steeplechase Subdivision Home Sale

September 20th, 2013
peachtree ridge schools #LawrencevilleGA #GwinnettRealestate  #GARealtor , #Home Buyers, #Lawrenceville, #Duluth, #Dacula, #N.E  Gwinnett Co, #RealEstate, #HomeSellers, #Realtor, #home values, #Gwinnett county home values #real estate #steeple run #Steeplechase Homes For Sale

Steeplechase Home for sale

Steeplechase Subdivision Home Sale

Great 4 bedroom 2.5 bath Steeplechase Subdivision Home is coming to market next week..
Home features great upgrades large lot semi finished basement located in the Peachtree ridge schools and a short walk to Jackson elementary … list price … wait for it wait for it BAMMM $215,000

Steeplechase

offers

Lake, Playground, Pool, Street Lights, Swim Team, Underground Utilities, Neighborhood Association

Book your appointment today

#LawrencevilleGA #GwinnettRealestate  #GARealtor , #Home Buyers, #Lawrenceville, #Duluth, #Dacula, #N.E  Gwinnett Co, #RealEstate, #HomeSellers, #Realtor, #home values, #Gwinnett county home values #real estate #steeple run #Steeplechase Homes For Sale

 

Are homes values still on the rise ? Volatile Housing Market Ahead ?

September 18th, 2013
Are homes values still on the rise ? Volatile Housing Market Ahead ? The housing market has lost some of its momentum recently according to a new study by the Redfin Research Center.

A recent report by REDFIN RESEARCH showed that “In August, 26.4 percent of active listings had their prices lowered, the highest in four years” is this a sign of the housing market slowing if not reversing? Daily I see Buyer interest as still strong and investors are still confident that the Single family homes are still a great investment  (see my recent blog The future of Single-Family Rental Market is it gone or here to stay ?) So what would account for the 26.4% downward shift in list pricing. We have always known setting a fair asking price from the outset will generate the most activity from other real estate agents and buyers. You will need to take into account the condition of your home, what comparable homes in your neighborhood are selling for, and state of the overall market in your area.  Don’t guess your price  ask for a “comparative market analysis” (CMA), which shows the prices of comparable recently sold homes, on-the-market homes and homes that were on the market, but weren’t sold. The on-the-market homes are the “competition” for your home. Ask your  agents why each home was included in the CMA and whether any other comparable homes were eliminated from the CMA. Price recommendations based on CMAs aren’t gospel. Some agents will tell you to under-price your home in hope of sparking a bidding war. Others will suggest a flatteringly high price to “buy” your listing only to demand a price reduction a few weeks later. Maybe those 26.4%  price adjustments are a result of Agents buying listing and seller hoping to “cash in” on recent market trends.

Check out tomorrow’s blog about the hazards of over pricing

The complete refine article can be found at Redfin Predicts Volatile Housing Market  09/17/2013BY: HUGH MOORE 

Are homes values still on the rise ? Volatile Housing Market Ahead ?

Are homes values still on the rise ? Volatile Housing Market Ahead ?

 

 

20.7% of Georgia Homeowners are still underwater

September 17th, 2013
Georgia Homeowners are still underwater

Georgia Homeowners are still underwater

Georgia Homeowners are still underwater

 

 

 

 

 

 

Do homeowners still need “short sales” as an option ? CoreLogic shows the following states had the highest percentage of mortgage borrowers still underwater in the second quarter:

20.7% of Georgia Homeowners are still underwater

  • Nevada: 36.4%
  • Florida: 31.5%
  • Arizona: 24.7%
  • Michigan: 22.5%
  • Georgia: 20.7%

Broken down on a metro level, Miami had the highest percentage of homeowners who are underwater at 36.5 percent, followed by Tampa, Fla. (33.8%); Phoenix (25.6%); Riverside, Calif. (24.8%); and Warren, Mich. (24.3%).

You can still do a short sale but you have to act fast HAFA options are set to expire

Call today ..770-277-6652 if you’re a Georgia Homeowners are still underwater

Complete report can be found at Click HERE

More Home Owners Recapture Long-Lost Equity 
DAILY REAL ESTATE NEWS | WEDNESDAY, SEPTEMBER 11, 2013

The future of Single-Family Rental Market is it gone or here to stay ?

September 17th, 2013

Single family rental market

The future of Single-Family Rental Market is it gone or here to stay ?

A recent read on  DSNews.com would make one think that Single-Family Rental Market is going to be a fixture in the real estate market for both the short term and the long term. Single family rentals appear poised to become a significant class of long-term investment asset according to a new report by financial services firm Keefe, Bruyette. 

I was recently speaking with a homeowner that was preparing to sell their home and move across country when I asked “what type of home are you looking to purchase after your move” the reply was ” not sure we will ever buy again .. I think we will rent .. it gives us flexibility.” For some the idea of flexibility and  the still unpredictability of housing market has lead to a rent now and wait to own mindset. So Single-Family Rental Market investors are here to stay.

We expect the large single-family rental companies to experience growth over the next 12-24 months with [the] introduction of leverage and consolidation of smaller players as potential drivers,” Rahmani 

For the complete story click here  

Growing Single-Family Rental Market Attracting Investment
09/16/2013BY: HUGH MOORE DSNEWS.com
 Single-Family Rental Market Attracting Investment

Single-Family Rental Market Attracting Investment

 
 
 
 
 
 
 
 
 
 
 
 
 
#single family rental market #Real Estate #Gwinnett Real Estate #KW 

A Great Read – The End of the Suburbs

September 16th, 2013

Found this to be a great read and had to ask myself is “Gwinnett’s big 3 cities;  Lawrenceville,Dacula and Duluth a suburb of Metro Atlanta or are Buford, Suwanee, Sugar Hill the Suburbs of Gwinnett’s Big 3  ? ” Gwinnett has long been known for it’s spiral and until recently that trend had slowed. So over the next 5 years will we see Gwinnett continue to move outward or is it The End of the Suburbs ?

The END of the Suburbs

The END of the Suburbs

Here’s a heads-up tip for a thought-provoking read: The END of the Suburbs, Where the American Dream is Moving, by Leigh Gallagher

A few highlights from the Introduction:

  • “After fifty years of outward migration, we’re starting to move in the other direction.”
  • “Since 2000, building activity has picked up in cities and showed down in suburbs.”
  • “As poverty has invaded the suburbs, wealth has rushed back into cities.If you’ve visited New York, Los Angeles, San Francisco, Seattle, or just about any other American city lately, you don’t need more proof that they are booming.”
  • “….studies show that when millennials [those born between 1977 and 1995] do leave their parents’ homes, they don’t want anything to do with the kinds of suburbs they grew up in.”

With chapters titled, “The Great Urban Exodus,” The Urban Burbs,” “The End of the Nuclear Family,” and “Where the Wealth is Moving” among others, it’s an easy book to pick up and delve into.

The END of the Suburbs by Leigh Gallagher will be fascinating read, and I expect it will give me insights which I can put to use to better understand the needs and wants of my clients.