August 12, 2010
NATIONWIDE
Foreclosures dent home values in the neighborhood – MIT Study
It is common knowledge if a nearby house of yours falls into foreclosure tragedy; invariably it reduces the market value of your home as well, from the home buyer’s point of view. More so, if your neighborhood is one of those hard-hit by many foreclosure properties, the drop down of value for all housing properties is considerable as a whole. But how much of this effect is and in what percentage? American Economic Review has conducted a study recently to answer these doubts, and the results are yet to be published in full. Read more..
When we can expect employments to grow?
The problems faced by U.S. Real estate market is unquestionably due to growing unemployment. If you see right from the beginning, the difficulties U.S. economy faced somewhere from the start of 2006 were cyclic in effect – ballooning of adjustable rate mortgages; repayment installment going beyond the family budget; defaults; delinquencies; foreclosures; stoppage of inflow of funds to the entire financial system of the country; closing down of major financial institutions; credit-crunch; companies and government employment cuts; and again more foreclosures till this day. Read more..
LUXURY HOMES
Lake Forest houses in short sales
Lake Forest – the Chicago suburb – is known as a place where all women drive S.U.V.’s and all the men are CEO’s. The trouble of the world didn’t seem to get into this neighborhood, where the per-capita income is $77,000.
Till now. It seems like foreclosures that has swamped the housing market – mainly in low-income neighborhoods, now starting to lap at the unspoiled shores of this community on Lake Michigan.
"In the first half of 2010, the largest increases in new foreclosures occurred in the region’s middle- and higher-income communities", a new report of the Woodstock Institute revealed. Read more..
LENDERS & SERVICERS
Foreclosure Filings Show Slight Decrease in Q2
According to Default Research, there are substantial signs of pre foreclosure statistics improving all over the research areas including Las Vegas, Miami and Phoenix. A 30% decrease of pre foreclosures is in Miami-Dade County , but it’s not the only with the positive changes. This was aided by new laws encouraging mortgage modification plans and short sales. Another good news is, that banks seem to become more cooperative and efficient regarding short sales, which is also easing the foreclosure crunch. Finally, homeowners can modify their mortgages to stay in their home, with the help of continuous education and assistance. The statistics can be seen below with comments from Default Research founder Serdar Bankaci. Read more..
COMMERCIAL
Krisco Senior buys a San Antonio development for less than half price at auction
Kisco Senior Living recently bought a seniors housing project in San Antoio at auction for less than half of the original cost, which was $37 million.
Villa de San Antonio, the development purchased by Kisco, opened four years ago as a continuing care retirement community. It has 114 independent living units, 24 cottages and 55 assisted living units.
The problem began with the property’s construction delay and it was followed by the low occupancy rate, of just 60%. This number was registered in February 2009, when the property filed for bankruptcy with $36 million in debt. Read more..
Commercial Real Estate prices oscillate – no firm indication
The Commercial Real Industry is suffering – the most obvious finding by financial experts and research firms. But the questions most difficult to answer even by experts are – how much and what the trend is indicating. The monthly CoStar Commercial Repeat-Sale Indices (CCRSI) try to answer these questions fairly, but not accurately as there are no effective indices to measure commercial property price movements and there is variation by property types and geographies. Read more..
MARKET UPDATE – DALLAS
Dallas and other housing markets yet to recover from poor consumer spending
Real estate business anywhere in the country is reeling under pressure, because of the weak economy. The national scenario reflected by many housing markets convey the same message of dullness – with minor changes here and there in markets like Dallas, Austin and similar others in Texas. People should have surplus money for investments like home buying and this is where it is lacking – as witnessed by recent reports. Read more..
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