by Gagner | Aug 14, 2013 | Real Estate News
In June, 58% of the sales in the state were made in all-cash, according to a report by RealtyTrac. But it’s not just Nevada. All-cash deals in Florida comprised 57% of home sales during the month; in the state of New York, it was 51%, and in Vermont, a whopping 80%. In markets like these, lingering foreclosures and depressed home prices are attracting private equity firms and other investors looking to buy before home prices go much higher, RealtyTrac said. In other markets, where there are fewer distressed properties, the all-cash deals are a lot less prevalent. Nationwide, cash deals comprised 30% of home sales in June, down from 31% a year earlier, RealtyTrac reported. But in states like Texas, Utah and New Mexico, such deals were practically non-existent. Related: Buy or rent? 10 major cities “The U.S. housing market is slowly but surely moving toward a more normalized and sustainable pattern after a flurry of institutional and cash buyers flocked to residential real estate last year, pushing up prices and picking clean the best inventory available in many areas,” said Daren Blomquist, vice president at RealtyTrac. The biggest metropolitan hotspot for investors right now is Atlanta, where all-cash deals represented 42% ofsales in June and investors represented 27% of buyers, the highest ratio in the country. Atlanta is still struggling with one of the highest foreclosure rates in the country, making it a prime target for investors. Hit hard by foreclosures when the housing bubble burst, Phoenix was one of the first places investors flocked to. A year ago, 25% of all homes sold went to deep-pocketed investors. In...
by Gagner | Aug 13, 2013 | Real Estate News
On Tuesday, August 6, 2013, President Barack Obama spoke about the new Congressional proposal to shut down Frannie Mae and Freddie Mac, the government-run behemoth mortgage companies that were rescued by a $187 billion taxpayer bailout during the financial crisis. If Congress follows through with the plans, borrows will probably end up paying slightly higher mortgage rates under the House and Senate bills that would slowly phase out Fannie and Freddie over five years and establish a much more limited government role in insuring mortgage securities. Supports of the bill say this would keep mortgage rates available and affordable for everyone. The underlying idea behind both of the House and Senate bills is to shift more mortgage financing risk away from the government and to the private sector to prevent taxpayers from having to pay for future bailouts. However, there will be a price homebuyers would have to pay for having private investors shoulder the majority of borrowing risk to protect taxpayers. Mark Zandi, chief economist at Moody’s Analytics said, “It will mean higher mortgage rates. The question is how much higher.” Zandi estimated that the average borrowers could pay up to $75 per month in extra interest payments (half a percentage point) on a mainstream mortgage under the Senate proposal, and about $135 more under the House plan. These figures are for a conforming loan of around $200,00 with the borrower providing 20% of the down payment. Story from SFGate: Read more at...
by Gagner | Aug 7, 2013 | Real Estate News
Just 44% of California residents could afford the median-priced home in the first quarter, a real estate group’s index says. The chance of finding affordable housing in California is dwindling as median home prices and interests rates continue to rise—fast. According to a study published by the California Assn. of realtors, only 44% of residents could afford the average priced home in California. This is compared to 56% during the same period as last year. Many would-be first time buyers are having their home owning dreams crushed, especially considering this time last year home affordability hit its highest level since the California Assn. or Realtors began publishing affordability statistics in 1988. The percentage is expected to decline even further as home prices and interest rates continue to sharply rise. In June, the average home price hovered around $428,510, a big jump from the $378,960 average in March. According to Freddie Mac, interest rates rose from 4.37% in July and from 3.41% in March. Read the full article at Los Angeles Times –...
by Gagner | Jul 18, 2013 | Uncategorized
As part of our partnership with Habitat for Humanity, Bridge Realty has pledged a fundraising goal of $2,500 to directly benefit the Carter Work Project. These funds will help buy land, labor and supplies that build the homes for families in need. With your donation, you will be helping families break the cycle of poverty and build long-term financial security. Habitat for Humanity and the Carter Project offers affordable, no-profit house payments for families in the Bay Area. Research has shown that decent housing improves health, increases children’s educational achievement and strengthens community ties. Donating through this site is simple, fast and totally secure. It is also the most efficient way to make a contribution to our fundraising efforts. Many thanks for your support — and don’t forget to forward this to anyone who you think might want to donate too! Thanks to your help, Habitat for Humanity and the Carter Project will be transforming the lives of families throughout the Bay...
by Gagner | Jun 22, 2013 | Uncategorized
With so many active real estate agents in San Jose, how do you know which one will provide the best service and net you the maximum offer for your Cambrian home? Generally, it is recommended that you interview at least 3 active agents in your particular area and carefully check their references. If you are willing to do a little extra effort to net a higher value for your home, I suggest working with a realtor that is experienced in creating added home value (more on that shortly). When interviewing a realtor, you first want to learn about their specific knowledge of your neighborhood and community. Do they really understand the home values within your neighborhood? Are they familiar with the schools (including API scores) and nearby amenities? What is their track record for selling homes in your area? What would their pricing strategy be for listing your home (starting at the highest price is not necessarily the best strategy for netting you the best offer). What resources can they offer (repair services, gardening, staging, etc)? Have they done a thorough CMA for your home (competitive market analysis). Does their personality mesh well with yours? These are just a few of the major items. Additionally, you will want to determine what is important to you and what areas you will require the most help. I have another possibility for you to consider. If you have been reading my previous posts, you know that I am both a licensed real estate broker and a developer. If you are really looking to maximize the sale of your home, have the initiative...
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