Wednesday, September 14, 2011

Got a child in college? You may like to know top 10 College Towns for Buying Foreclosures?

Top 10 College Towns for Buying Foreclosures

August 30, 2011
By Joel Cone, Staff WriterText Size A A A

It’s the time of year when proud parents are sending their kids off to college while booster clubs are revving up for the impending college football season. What better time to consider the best college towns for investing in foreclosures?

For parents, buying a home off campus for their kids to live in can be a very pragmatic business decision. Investing in college-town real estate can also make sense for alumni or other investors looking for a property that generates a steady cash flow in a location they love — if they’re willing to put up with the heightened potential for property damage, continuous repairs and occasional evictions from student tenants who don’t feel responsible for taking care of the property.

Thanks to foreclosure sales data compiled by Foreclosure News Report for the first half of 2011, we have put together a Top 10 list of college towns for buying foreclosures.

The primary criteria for these Top 10 were the average discount on a foreclosure purchase — the percentage difference between the average sales price of properties in foreclosure and the average sales price of properties not in foreclosure — along with the percentage of all sales that were of properties in foreclosure.

Palo Alto, Calif. | Stanford University
Known as the “birthplace of the Silicon Valley,” 94 foreclosure properties sold in Cardinal territory for an average price of $350,886 during the first half of the year — an astounding 69 percent below the average price of properties not in foreclosure during the same time period.

Foreclosures accounted for 17 percent of all homes sales in the area during the period, indicating there are plenty of foreclosure deals available but not so many as to drag down the entire market.

Columbus, Ohio | Ohio State University
For the first six months of 2011, Buckeye fans paid an average sales price of $57,700 for foreclosure properties — a 58 percent discount off the average sales price of properties not in foreclosure.

A total 999 foreclosure properties sold during the period, accounting for 17 percent of all home sales in the area, again showing plenty of deals without foreclosure activity overwhelming the local housing market.

Louisville, Ky. | University of Louisville
The city that Cardinal fans call home base had 889 foreclosure properties sell during the first six months of the year, representing nearly 25 percent of all home sales during the period.

Properties in some stage of foreclosure sold at an average sales price of $84,495 during the first six months of the year, 51 percent below the average sales price of properties not in foreclosure.

Evanston, Ill. | Northwestern University
Just 20 miles north of downtown Chicago, Evanston had 74 foreclosure properties that sold in the first half of 2011 for an average sales price of $190,930 — a discount of 47 percent off the average sales price of properties not in foreclosure that sold during the same time period.

Foreclosures accounted for 24 percent of all home sales during the first half of 2011 in Wildcat territory.

Baton Rouge, La. | Louisiana State University
Foreclosure sales in LSU Tiger country accounted for just 14 percent of all home sales in Baton Rouge during the first half of the year, with 221 properties in some stage of foreclosure selling during that time period — an almost 15 percent increase from the previous six months.

Foreclosures in Baton Rouge sold for an average price of $115,043 — a 45 percent discount.

Tucson, Ariz. | University of Arizona
Fifty percent of all residential sales in the home of the Arizona Wildcats were foreclosure sales through mid-year 2011, allowing for investors to pick from a plethora of deals.

For the first six months of the year, 3,068 foreclosure properties sold in Tucson for an average price of $116,916 — 41 percent below the average price of non-foreclosure properties. Foreclosure sales were up almost 13 percent from the previous six month period.

Knoxville, Tenn. | University of Tennessee
Foreclosures accounted for only 8 percent of all residential sales in Volunteer territory during the first six months of 2011, with 431 properties in some stage of foreclosure selling in Knoxville during the first half of the year.

Foreclosures sold at good discounts, with an average sales price of $108,595 — 41 percent below the average sales price of properties not in foreclosure during the same time period.

Tallahassee, Fla. | Florida State University
The Florida state capital, Tallahassee was rated one of the nation’s Top 10 Bargain Retirement Spots by U.S. News & World Report earlier this year.

For the first half of 2011, the home of the Seminoles had 339 foreclosure sales, a 14 percent increase from the previous six month period and up 11 percent from the first half of 2010. Foreclosure properties in the area sold for an average sales price of $112,790 — a 35 percent discount. Foreclosure sales accounted for nearly 29 percent of all home sales during the period.

Lubbock, Texas | Texas Tech University
The home of the Red Raiders documented 74 foreclosure sales for the first half of the year, selling for an average sales price of $91,454 — a 33 percent discount. Foreclosure sales accounted for only 5 percent of all residential sales in Lubbock during the six-month period.

Ann Arbor, Mich. | University of Michigan
Wolverine boosters saw 130 foreclosure properties sell during the first six months of the year, 24 percent of all residential sales during the period. The average foreclosure sold for $181,766 — 31 percent below the average sales price of properties not in foreclosure that sold during the same time period.

With an average foreclosure discount of 44 percent, these 10 college towns offer parents, alumni and other prospective real estate investors plenty of opportunity to purchase a bargain property in a stable housing market anchored by a large university providing a steady stream of potential renters.

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This article was excerpted from the August 2011 issue of the Foreclosure News Report, published by RealtyTrac. Order a free issue of this award-winning newsletter.

Monday, September 12, 2011

July Stats-Sales during first 7 months are up 5% as compared to sales for same time in 2010.

The biggest gains were in land sales which increased 28%. The median sales price for end of July for Residential Sales (not including condos) was $352,469, as compared to 2010 at $330,425. Another interesting stat is the number of Residential listings listed as a potential short sale has dramatically declined while the number of sold bank owned sales have dramatically risen. See charts below from Outer Banks Board of Realtors.

Thursday, September 1, 2011

Good News for real estate and life!!!

White House could unveil mortgage plan next week

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Analysis & Opinion

Home prices face tough road ahead

Tue, Aug 30 2011

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Housing Market

Construction workers are shown on a residential housing work site in Burbank, July 27, 2011. REUTERS/Fred Prouser

By Margaret Chadbourn

WASHINGTON | Wed Aug 31, 2011 9:43am EDT

(Reuters) - The Obama administration is considering unveiling new plans next week to revive the ailing housing market and reduce foreclosures, including an effort to help troubled borrowers refinance their mortgages.

The administration has been working for weeks on how to implement a mortgage relief program. President Barack Obama could include a nod to the plan in a speech on job creation next week, sources familiar with the administration's plans said.

The refinancing initiative would allow certain borrowers to refinance loans that are backed by government-owned Fannie Mae and Freddie Mac or the Federal Housing Administration, the sources said.

A broad-based effort to automatically refinance millions of mortgages is not in the works, yet the administration is looking to take targeted changes to an existing program that would allow more borrowers to take advantage of low mortgage rates, including allowing borrowers to refinance even if they owe a significant amount above their property's current value.

The idea is to help struggling borrowers refinance at current low interest rates, which would cut their monthly payments and free up cash for other spending. The hope is that this could drum up overall business activity.

The average rate on a 30-year fixed loan was 4.22 percent last week, close to the lowest level in more than 50 years, according to Freddie Mac.

Fannie Mae, Freddie Mac and the FHA, which together account for 90 percent of the U.S. residential mortgage market, would be given permission to begin refinancing plans for borrowers that are current on their mortgage payments and not considered seriously delinquent, according to the sources.

While the administration is under pressure to firm up the details, it is not yet clear whether borrowers seeking to take out a loan that is more than 80 percent of the value of the home would qualify for refinancing. The White House has kept the specifics of the refinancing plan closely guarded as it attempts to work out the details.

White House officials had long been wary of trying aggressive new programs to revive the housing market. The prevailing view at the White House over much of the last two years was that any remedies would cause at least as many problems as they solved.

A mainstay of the administration's housing initiative, rolled out in April 2009, has fallen short of expectations. Known as the Home Affordable Refinance Program, it was originally intended to help 4 million to 5 million homeowners avoid foreclosure. As of May it had helped only about 810,000 homeowners refinance into loans with lower rates, according to the Federal Housing Finance Agency.

But Democrats close to the White House said the weakness in the economy and the drop in mortgage rates have led officials to take a second look at ideas that could bolster the housing market and ease the strain on household budgets.

Analysts who favor action say housing is at the heart of the economy's woes and that its moribund state is creating a risk of a Japanese-style "lost decade" of economic stagnation.

"We can either spend the better part of a decade allowing households to gradually work off their debt burden," said William Galston, a scholar at the Brookings Institution think tank. "Option number two is that we try to jump-start the process."

"I think it's time to go back to the drawing board," he added.

CHICKEN OR THE EGG

Some economists, however, believe the strain the housing market is putting on the rest of the economy can be addressed in other ways, such as using infrastructure spending and tax credits to encourage hiring in order to reinvigorate growth.

Christina Romer, a former top economic adviser to Obama, said that compared to other measures to address the economy's woes, a housing-specific program could be expensive. She noted that homeowners tend to be wealthier than the general population so such programs would not be targeted to people most in need.

"A bold jobs program might be just as effective and better targeted to those who need help the most. Also, healing the economy is as likely to heal the housing market as programs aimed directly at housing," said Romer, a professor at the University of California, Berkeley.

And while refinancing has accounted for the majority of mortgage applications for many months now, according to weekly data from the Mortgage Bankers Association, there is no evidence that the refinancings are providing a spur to consumer spending.

The refinancing initiative under consideration by the Obama administration mirrors a plan contained in legislation co-authored by Senator Barbara Boxer, a California Democrat, and Senator Johnny Isakson, a Republican from Georgia.

In a letter on Monday to Edward DeMarco, acting head of the Federal Housing Finance Agency, which regulates Fannie Mae and Freddie Mac, Boxer argued that the plan would provide a "dual benefit."

She said it would help Fannie and Freddie avoid losses, since fewer borrowers would fall delinquent, while providing a boost to the economy.

BONDHOLDERS ON THE LOSING END

The loudest objections are being registered by holders of mortgage bonds, who would take a hit if loans are paid off early.

Some fund managers have loaded up on agency mortgage-backed securities, those bonds backed by mortgages guaranteed by Fannie Mae, Freddie Mac and the Government National Mortgage Association, because they offer higher yields than U.S. Treasuries.

Last week, the $5.4 trillion agency MBS market recorded one of its worst weeks in a year as traders dumped mortgage bonds out of concern the White House would put forward a plan that would shoulder them with losses.

While mortgage rates have been hovering around record low levels, banks remain stingy with lending although they are sitting on more than $1 trillion in excess reserves. Homeowners without a job or good credit histories have been essentially shut out of the refinancing process.

Some investors say the economic benefit of a government-encouraged refinancing wave would be minimal.

"It's a political hail Mary. It's unclear why they want to throw a monkey wrench into a $5 trillion market," said John Kerschner, head of securitized products at Janus Capital Group in Denver. He said the net benefits for the economy are negligible, perhaps adding $20 billion to $30 billion "at best" to the U.S. economy.

(Additional reporting by Richard Leong in New York; Editing by Leslie Adler)

Wednesday, August 10, 2011

The founder of For Sale By Owner.com Uses and agent to sell his home!

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ForSalebyOwner.com Founder Uses Agent to Sell Home

DAILY REAL ESTATE NEWS | TUESDAY, AUGUST 09, 2011

The founder of a popular for-sale by owner Web site used a real estate broker

to help sell his 2,000-square-foot, two-bedroom New York apartment after

it lingered on the market for six months. Colby Sambrotto, the founder and

former chief operating officer of ForSalebyOwner.com, tried to sell the

property himself by listing it online and through classified ads, but after six

months of it sitting on the market, he sought the help of a real estate broker.

Broker Jesse Buckler told Sambrotto the condo was priced too

low and wasn’t attracting the right buyer for the condo. "At first he wouldn't

let me increase the price," Buckler said.

"I told him I know what I am doing—the market is picking up."

The condo soon attracted multiple offers and ended up closing

recently for $150,000 more than the original asking price.

Source: “DIY Guru Gets Broker Help,” The Wall Street Journal (Aug. 3, 2

Thursday, August 4, 2011

JUNE 2011 STATS from Outer Banks Board of Realtors

Overall- Sales for June were up by 3% from one year ago and 12% from last month. Residential Property Sales in 200k to 499k range were the hottest properties with sales up 7% since last year and 48% since May.

Distressed Residential Property Sales were down 6% from last year, however the number of sold short sale units was up 81% from a year ago. In comparison the number of sold bank owned units were up 11% from May, but was down 48% from last year.

Median Sales price for single family detached homes was down 7% from last year and down 17% from last month. The median sales price for condos was down 36% from last year, however the median sales price was up 28% since last month.

Inventory- Overall inventory has declined over past year by 14% and land has declined 15%.

Foreclosure Report- Dare County foreclosure are up 28% in June/2011 with 50 units over May/2011 with 39 units.

Heather Vandermyde, Senior Broker

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