Thursday, July 30, 2009

Housing Is Jostled, But on Road to Recovery

Excerpted from NAHB:

In the final estimate of real (inflation-adjusted) growth in gross domestic product (GDP) for the first quarter of 2009 by the Bureau of Economic Analysis, GDP fell 5.5% at a seasonally adjusted, annual rate. This decline was less than the bureau’s preliminary estimate of a 5.7% drop.

Back-to-back, substantially negative quarters are certainly painful indicators of an economy in a sharp recession. Nonetheless, the trend indicates that the worst is over, that the decline is slowing and that we will see growth re-emerge.

NAHB estimates that the just completed second quarter of 2009 resulted in a 1.2% decline in real GDP. Looking forward, we expect the economy to expand at an average annual rate of 1.5% in the second half of 2009.

To date, a relatively small amount of the first stimulus package has been spent. Approximately $90 billion of the $789 billion package, or 11%, had gone into the economy by the end of June, and more of that money is expected to flow into the economy as summer road projects ramp up.

By the end of the year, about $250 billion should be injected into the economy. Typically, it takes six to nine months for the effects of government spending and tax cuts to spread throughout the economy.

The housing market is clearly negotiating the roughest road of this recession/recovery. All the month-to-month volatility makes one nervous about declaring a bottom in the market. However, the crucial first step to recovery in the housing market — stabilization of demand — appears to have occurred.

Single-family existing home sales, which averaged 4.1 million in the first quarter of this year, averaged 4.2 million for April and May. May’s reading of 4.25 million single-family sales at a seasonally adjusted, annual rate was the highest rate since October of last year. While many of these sales are foreclosed homes and short sales, clearing out the inventory of foreclosed homes is necessary.

New home sales seem to be struggling more, but they are slowly improving. First quarter sales averaged 339,000. April and May averaged 343,000 — a small but definite improvement.

Clearly, competition from foreclosed homes, wariness among potential home buyers, recession fallout, stiff lending standards and overly conservative — and in some cases, undervalued — appraisals are all acting as a drag on the new home market.

Nonetheless, builders are successfully paring their inventory of new homes. At of the end of May, builders had 292,000 houses for sale. This is down from peak inventory of 572,000 at the end of July 2006 and 453,000 from May 2008.

If builders continue to reduce their inventory, as seems likely, and sales advance, the months’ supply will fall towards a more normal level. As it is, months’ supply is down from an all-time high of 12.4 months in January of this year, a result of reduced inventory and a higher sales rate.

More and more communities outside of these areas (and even some in these areas) will see prices stabilize and, in some cases, move higher.

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Wednesday, July 29, 2009

Apartments, Condos Benefit Local Economies

A new report from NAHB found that the development of apartment and condo communities generates significant economic benefits for municipalities long after the building process has been completed.

"As employment and tax revenues plummet nationwide and local governments continue to seek ways to enhance the fiscal health of their communities, this new report should enhance local planning efforts," said NAHB Chairman Joe Robson.

The report explains how a typical development of either 100 rental apartments or 100 condominiums affects income and employment figures for 16 sample industries and local government, as well as detailed information about the new construction's effect on taxes and government revenue.

During its first year of construction, a typical 100-unit apartment community will generate $7.9 million in local business owners' income, wages and salaries; $827,000 in taxes and other revenue; and 122 jobs.


The Club at Clove Lakes Park is an example of a active-adult, over 55 condominium community here on Staten Island

A similarly-sized condominium community would do even more, with $20.9 million in owners' income and local wages and salaries, $2.2 million in public revenue and 319 jobs.

"To fully understand the positive impact of multifamily construction, it's important to recognize the economic ripple effects and ongoing benefits to the community at large," Robson said. "Local governments now have a great resource they can use to enhance their land use policies."

And both apartments and condos continue to deliver benefits to the local area for years to come. Each year, the construction of 100 multifamily units could generate $2.3 million to $2.9 million in business income; $395,000 to $705,000 in taxes and other revenue; and 32 to 49 jobs.

"There is continued demand for close-in housing in major metro areas, and apartments and condos not only can fill that need, but also can help jump-start local economies," said NAHB Chief Economist David Crowe. "The initial impact and the ongoing ripple effect from added employment and tax revenue can make encouraging multifamily development a winning strategy for local governments."



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Monday, July 27, 2009

New Home Sales Jump 11%

http://www.sellwithsoul.com/images/sold_sign.jpg

Business Week just reported a significant rise in home sales for June. We aren't out of the woods yet, but this is also an indication for smart investors to get in now!

Anyone just hear a thud? That might be the sound of the housing slump bottoming out.

The Commerce Dept. reported on July 27 that sales of new one-family houses in June were at a seasonally adjusted rate of 384,000, an 11% increase over the revised May rate of 346,000. That beat analyst estimates—but was still 21.3% below the year-earlier estimate of 488,000.

Meanwhile, the median sales price of new houses sold in June was $206,200, down 12% from $234,300 a year earlier and down nearly 6% from $219,000 in May. The seasonally adjusted estimate of new houses for sale at the end of June was 281,000, representing an 8.8-month supply at the current sales rate, down from 10.2 months.

"The sales figures reinforce the view that the housing sector troughed in Q1, as this sales gauge has risen substantially from the cyclical-trough of [329,000] in January," Action Economics commented. Action Economics had forecast June's sales rate at 355,000.

But while housing might be finding a floor, it's less than a penthouse view. Morgan Stanley (MS) analyst David Greenlaw noted that "much of the sales activity was concentrated at the lower end of the market. Second, sales contracts that were signed in June may have been tied to the lows in mortgage rates that were recorded in April and May."

And there's still an excess of inventory, analysts said.

"Unfortunately, until that figure gets down to around 6 months worth of supply, the downward pressure on prices will remain," Paul Ashworth, senior U.S. economist for Capital Economics, said in research note. "The median price of a new home fell by 12% over the year to June. In short, activity is stabilising, albeit at very low levels, but prices will continue to fall for the foreseeable future."

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Video Fun Day: Everyone is Twittering So Why Should't U?


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Friday, July 24, 2009

What NYC Real Estate Can $700K Buy?

Among the homes in NYC that NY1 checked out a few days ago, is a charming one-family home on Staten Island, just minutes from the Verazzano Bridge.:


"The house is a three-bedroom broadside ranch," Appleseed Realty GMAC's Zehava Ingwer said. "It has a two-car garage, full finished basement with a custom fireplace, a beautiful brand-new kitchen, two full bathrooms, one quarter bath downstairs in the basement. Also, in the backyard, we have an in-ground pool with a beautiful deck."

The house is just over 1,100 square feet plus the basement, on a plot that is about 7,000 square feet. It's listed at $699,900 and taxes are $4,500 a year. It's been on the market for about five months.


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Less People Think House Prices Drop; Fear of Job Loss Looms Against Home Purchases



Excerpts from an NAHB article and an article from The Daily Herald:
Among the signs of the housing recovery, there was one more small piece of encouraging news last week from the Chicago Booth/Kellogg School Financial Trust Index, which found a significant rise in optimism on the housing front among the more than 1,000 U.S. households it surveyed by telephone during two weeks in late June.

The quarterly index reported on July 13 that the percentage of people who think house prices in their area will decrease in the next year dropped to 26% last month, from 37% in March and 47% in December 2008.

“In only six months we’ve seen marked improvement in confidence toward home values,” said the report’s co-author, Paola Sapienza, of the Kellogg School of Management at Northwestern University.

“In fact,” he noted, “75% of the people who changed their opinion during this time period now think housing prices will remain stable, while the remaining fourth think house prices will rise.”

The Financial Trust Index findings were mirrored in the latest 2009 National Housing Pulse Survey, which was released by the National Association of Realtors® on July 9. The Realtors® survey, which measures how affordable housing issues affect consumers, found that most Americans consider having enough money for downpayment and closing costs to be the biggest obstacle to buying a home.

On other questions, the results of the survey were positive:
  • Despite the challenges with the economy and housing market, 83% said they still believe buying a home is a good financial decision.

  • Three-fourths of those surveyed also believe now is a good time to buy a home, a number that has increased steadily over the past two years.

  • One-third of renters said they are thinking more about buying a home than they were a year ago.

  • More than three-fourths of the households polled said they were concerned about the drop in home values, but nearly seven in 10 expect local home prices to remain about the same in the next three months. Only 18% expect prices to decrease further.
The survey also found concerns over job security reaching their highest level since the research was started in 2002. Two thirds of those participating in the most recent telephone survey identified job layoffs and unemployment as a big problem, and eight in 10 pointed to the job situation as a barrier to homeownership.

To combat this worry, builders have been offering job loss insurance. Out in Illinois, Bigelow Homes offered Mortgage payment protection as a part of a plan to help people overcome fear that is keeping them out of the housing market.

"We understand that there are a number of reasons why people are reluctant to jump into the housing market," Bigelow said. "However, if you can overcome those fears, it's a great time to buy. After a lot of brainstorming, we figured out a way to reassure our buyers that their investment is safe." In essence, the builder eliminated the things that keep fretful buyers up at night.

"When we first announced this program this spring, it tripled our traffic," Bigelow said. "Things have leveled off since then but people continue to be interested. Between the reasonable prices, the historically low interest rates and the recession-proof protection, I can't think of anything that would make buying one of our homes a safer investment than it is now."

Closer to home here on Staten Island, the same kind of assurances are being offered by The Estates at Opal Ridge, which has been offering the plan since February. "We were on the forefront of this kind of offer," said Adrienne Setbon, the real estate broker at Opal Ridge, a family-friendly community of twenty-two homes out in Princes' Bay. "The response has been very positive. While it isn't the 'big giveaway' that closes a deal, it is something that has been giving a lot of our buyers a lot more confidence to buy at Opal Ridge, and is something that our competition doesn't offer."



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Thursday, July 23, 2009

Fabric Awnings Boost Energy Efficiency in the Absence of Shade Trees

Excerpted from HousingZone:


Fabric awnings and canopies can be an energy-saving addition to sustainable landscape design.

Homeowners seeking more sustainable, energy-efficient homes, and where location, climate or existing hardscape prevent the planting of trees, shrubs and vines, or around newer buildings with less mature plants, might want to consider fabric awnings and canopies as an energy-saving addition to sustainable landscape design.

When added above windows and doors, awnings can significantly reduce home cooling energy use. "Energy efficiency is really the number-one concern with green or sustainable buildings, and awnings can directly affect energy use by simply blocking the sun," according to John Carmody, Director of the Center for Sustainable Building Research at the University of Minnesota. "Heat gain through the windows is one of the main reasons why buildings need air conditioners. We found that awnings make quite a difference in the cooling energy equation. In some climates you can save 20 to 25 percent of your cooling energy just by using awnings."

Awnings and canopies add style, functionality and sustainability to hardscapes, and are more economical to build and maintain than comparable masonry and wood structures. From a conservation landscaping perspective, awnings placed on or near a home can significantly reduce energy consumption for cooling.

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Housing Starts and Permits Up Strongly in June

Excerpted from an NAHB article:

Home builders responded to improved market conditions and the impending expiration of the first-time home buyer tax credit in June by posting substantial gains in nationwide housing starts and permits, according to figures released by the U.S. Commerce Department last week.

Commerce reported a 3.6% gain in overall housing starts to a seasonally adjusted annual rate of 582,000 units and an 8.7% gain in permit issuance to 563,000 units.

“The upcoming expiration of the first-time home buyer tax credit on Dec. 1 is encouraging some builders to get homes started now so that they can be completed in time for clients to take advantage of this attractive buying incentive,” said NAHB Chairman Joe Robson.

“Today’s report was in keeping with our forecasts for some glimmers of improvement on the single-family side in the second quarter, and also with the results of our latest builder surveys,” said NAHB Chief Economist David Crowe.

Single-family housing starts rose for a fourth consecutive month in June, posting a 14.4% gain to a seasonally adjusted annual rate of 470,000 units, while single-family permits rose for a third consecutive month, posting a 5.9% gain to 430,000 units.

Meanwhile, multifamily activity, which characteristically displays greater month-to-month volatility, was true to form. Multifamily starts posted a 25.8% decline following an unsustainably large gain in the previous month, to 112,000 units. Multifamily permits rose 18.8% to 133,000 units from an abnormal low in May.

Regionally, housing starts were mixed, with the Northeast and Midwest posting big gains of 28.6% and 33.3%, respectively. Permit issuance was up in all regions in June, with the Northeast posting the largest gain, at a 5.4%.



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Wednesday, July 22, 2009

Park Lane at Seaview: Golden Age Green

From the Globe Street article Green for Seniors:



STATEN ISLAND, NY-The highest point in New York City also may be a high point in creative and sustainable reuse, as a century-old nurses’ dormitory has been converted into a sustainable independent living community for senior citizens.

Located on the 70-acre campus of the Sea View Hospital and Rehabilitation Center and Home in the borough of Staten Island, Park Lane at Sea View is the result of four years of effort by New York City and co-developers Domain Cos., the Arker Companies and Metropolitan Council on Jewish Poverty to increase affordable housing. But this project added the challenges of making landmark buildings as green as possible.

Domain responded to a 2004 request for proposals from the city, which had been looking to redevelop the site, once a hospital for tuberculosis patients. The buildings, however, had been abandoned for some 30 years after treatments were developed for the disease.

"They were in pretty bad shape," says Matthew Schwartz, a principal of New York City-based Domain Cos.

Still, Domain came up with a plan to convert the nurses’ dormitory to 104 housing units, making them as energy efficient and sustainable as possible. But the landmark status of the buildings complicated the design. The complex is in a designated historic district requiring special zoning, and is listed on the National Register of Historic Places and with the New York City Landmarks Preservation Commission.

In addition, Park Lane at Sea View is the first historic development to use New York State’s Energy and Research Development Authority’s (NYSERDA) program for the creation of energy efficient affordable housing. All had a say in the renovation.

"The biggest challenge was to make it compatible with NYSERDA and the Landmarks Commission," said primary project architect Hugo S. Subotovsky, principal of Hugo Subotovsky Architects, Suffern, NY. Dallas-based HPA Design Group did the interiors, and Domain also worked with New York City-based Building Conservation Associates.

For example, NYSERDA wanted metal window casings for energy efficiency, while the Commission insisted on preserving the historic wood windows. Ultimately, the architect found a compromise, changing some windows while retaining others, which were temporarily removed and restored. The Spanish Mission-style buildings, unusual for the New York City area, were meticulously restored and modernized. Original wood doors were converted into decorative pieces. Book cases, fireplaces, tile work and woodwork also were preserved and incorporated into the new development.

Recycling the existing materials was only part of the "greening" process, though the designers and developer were somewhat limited in what technology could be used. "Working with historic structures, practically speaking, there is only so much you can do," Schwartz says. Solar panels could not have been considered, Subotovsky notes.


Interior
High efficiency HVAC units were installed in the building’s attic, retaining its architectural integrity, while making the project eligible to receive nearly $300,000 from NYSERDA for incorporating energy-efficient design features such as Energy Star-rated appliances and lighting, and high-efficiency boilers into the development. As a result, the project is 20% more efficient than it would otherwise have been. LEED certification, however, is not being pursued.

"A project like this isn’t designed for LEED certification," Schwartz says. "Though we’re doing a low-rise project that’s a pilot for LEED for Homes."

Despite the challenges, though, the agencies worked together well, Subotovsky notes, expediting the permitting and review. "Everyone wanted this to happen." he says "I was very satisfied with how [we went] through the red tape and bureaucracy."

"Today we are celebrating the first historical preservation initiative on Staten Island to use green building practices to create first-class, mixed-income rental housing for seniors," said Department of Housing Preservation and Development Commissioner Rafael E. Cestero at Park Lane’s ribbon-cutting. "The development's success is the result of an unyielding commitment to collaborate across government agencies and with our private and non-profit partners. In doing so, we have advanced our shared mission of creating housing for Staten Island seniors. We are proud to have been a part of this endeavor."

Park Lane at Sea View received more than $30 million in financing through a variety of resources. Centerline Capital Group provided $14.6 million in equity through the syndication of historic and housing tax credits. Bank of America provided $5.2 million in construction financing which will be replaced with a $5.2 permanent loan from Fannie Mae that was arranged by MMA Financial.

"When you’re doing a historic renovation, you always have surprises, usually the cost to get things done," Schwartz says. "But in the long run, we’re pretty happy."



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Tuesday, July 21, 2009

Is the Next Big Thing Smaller Houses?

http://www.treehugger.com/house-size-shrinking.jpg

An excerpt from an NAHB article:

The median size of new single-family houses sold in the U.S. has increased 42% during the past 20 years — from 1,650 square feet in 1978 to 2,335 square feet in 2007.

But a closer look at the data shows that this trend has not held steady throughout from year to year. Decreases occurred in 1981-1982, 1995, 2003 and 2007-2008, and I expect house sizes to decrease even further this year and next while the economy remains sluggish. In addition, with the $8,000 first-time home buyer federal tax credit stimulus bringing more first-time home buyers to the market, the trend toward smaller houses will probably continue.

This trend toward smaller homes means builders will probably introducing products that are between 10% and 20% smaller than their current offerings.

Some of the ideas that are on the boards for this are: site plans that accommodate approved number of units on smaller lots with more land dedicated to open space. This also appeals to the modern homeowner who is looking for more walkable and diverse neighborhoods and green building practices. In fact, the smaller, smarter home can be considered a precursor to green building since, by definition, green homes require less material to build and less energy to heat and cool.

As for the house itself, many of the formal rooms are disappearing in houses that are smaller than 2,000 square feet and providing buyers with flexible options. In many of these houses, the dining room, if it is avialable at all, is often offered as a “dining or den” space, with doors as an option. For houses 2,200 square feet and larger, what in the past may have been the living room, parlor or other formal room now is often offered as a "den/guest bedroom" with a full bathroom nearby.

While formal rooms shrink in size, additional space is being added to great rooms and kitchen/breakfast areas — the rooms that home owners and families are using more. Also what used to be an upstairs bedroom is now often being turned into a loft or other form of flexible space. In addition, with these smaller houses, creativity has lead to new small amenities such as drop zone" desks near the kitchen, closets near the garage entrance and smaller "desk niches" tucked throughout the house.

Will house sizes continue to decrease once the housing market stabilizes? Demographics make a strong argument for the affirmative, since the average household size is continuing to shrink. Some predict that the trend toward smaller house sizes will continue through the coming decade, but that is less clear. For the near-term, however, expect house sizes to continue to shrink, until the economy and housing market recover.



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Monday, July 20, 2009

EDC and developers in talks to develop former Staten Island Navy Homeport



The city’s Economic Development Corporation is talking to developers about redeveloping a prime stretch of Staten Island waterfront -- a project that’s been discussed by local business leaders and city officials for years, but has seen little action.

The EDC isn’t ready to disclose any details, however, about the proposed makeover of the former Navy Homeport on a 36-acre site in the Stapleton section on Staten Island’s northeastern side.

“We’re talking to the development community,” said Janel Patterson, spokesperson for the EDC, declining to comment further.

The Applied Development Company of Hoboken, NJ, which built the W Hotel and Residence on the Hudson in New Jersey, has been mentioned as a possible developer of the site. Applied is considering building at least 350 units of housing and is reviewing a contract as part of a 30-day review period, the Staten Island Advance reported last month. Officials from Applied did not return calls for comment.

Local observers on Staten Island expressed skepticism about the likelihood of any project moving forward at the waterfront in the current economic climate.

One real estate agent noted the problems Brooklyn developer Leib Puretz has encountered selling new luxury condominiums in St. George, a stone’s throw north of Stapleton.

Some believe the size of EDC’s proposed project for Stapleton is also a problem.

A bigger mid-rise or high-rise project would be more enticing to developers, said Anthony Licciardello, a sales associate with Neuhaus Realty in New Dorp Heights.

“It’s not the type of housing that would drive a good market price,” said Licciardello, who, from 2002 to 2006, was the city’s community affairs director for Staten Island and also served on the Staten Island Growth Management Task Force. “Most people are wondering if it’s viable at this point, with the current real estate conditions. It’s hard to say in this current climate what’ll work there if anything.”

Local leaders consider the site a crown jewel along the borough’s waterfront. The area offers sweeping views of the Verrazano-Narrows Bridge and the Manhattan skyline.

“It’s got great potential,” said Linda Baran, president of the Staten Island Chamber of Commerce and a member of the city’s Homeport task force committee. “When people come to Staten Island, they can’t believe it hasn’t been developed.”

For a while, actor Danny Aiello operated Stapleton Studios on the site. The city evicted the film studio around 2002 and in 2004, Mayor Michael Bloomberg announced a plan to revitalize the area. Two years later, the New York City Council approved a project that called for turning the waterfront section into a complex with commercial space, a banquet hall, recreation center, waterfront esplanade and 350 apartments. Other sections of the borough’s waterfront have seen new developments sprout up, including the Tides at Charleston, a gated community for adults 55 and older on the south shore, and Sailor’s Key, a luxury townhome development in Great Kills Harbor on the eastern shore.

In his 2005 state of the city address, Bloomberg compared the Homeport to Mark Twain’s description of the weather: “Everybody talks about it … but nobody does anything about it.”

- By Lynne Miller of The Real Deal

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Friday, July 17, 2009

Don't Take Our Word For It


We've been telling SIREN readers what a great time it is now to buy real estate for some time now. Well, don't take our word for it only! This article from InvestorCentric Blog says that it is the best Opportunity to make Money in Real Estate in 20 years
:

With prices back to 2003 levels and the general consensus that prices are near bottom, this could be the best time to invest in real estate in years. Real estate investment firms are looking to get back in the US real estate market, which one real estate investment executive calls "the new emerging market"."

Now that the meltdown has happened, the new emerging market is the United States,” Tom Shapiro, president of real estate investment firm GoldenTree InSite Partners, said at the Reuters Global Real Estate Summit in New York.

“I think there’s going to be the best opportunity to make money in the last 20 years in real estate in the US.”

GoldenTree InSite pulled the plug on US real estate investment in 2006 and focused attention and cash on Brazil instead, with investment in residential and office properties.

The company has a war chest of about a $1 billion to sink in to property, and is ready to return to the US market and take advantage of the right projects that need or will need money when they come up short. “We are just at the point now where we are seeing some very interesting entry points on certain transactions,” he said.

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Thursday, July 16, 2009

More signs of a real estate bottom as home sales, median price climb

http://www.officespacebrentwood.com/wp-content/uploads/2008/11/rising-home-sales.jpg

Excerpts from the Mercury News site's article: The number of previously owned single family homes sold in Santa Clara County jumped 31 percent in June in another sign that the market has hit bottom, helped by the greater availability of mortgages.
The sales were boosted by improved mortgage availability and a perception that prices have bottomed out.

Yes, this article is about the Bay Area of San Francisco. However, the good news is that if one of the hardest hit markets in the nation is recovering, then it is good news for everyone.

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Wednesday, July 15, 2009

Special Guest Blogger Tyler Phillips From Keller Williams Capital District


Photo From minds-eye on Flickr.

The daily transactions in Real Estate can be compared to any transaction at your local market. In both arenas you can find shopping, haggling and negotiation, and finally, purchasing and closing. But arguably the most significant factor in any business transaction isn’t so apparent. This factor is motivation. Most times this word is associated with distressed sellers facing financial issues. This is clearly evident in the current foreclosure and REO numbers. It is important to analyze your own motivation as a buyer. As a real estate agent, it is called creating urgency to buy. The reality is, us real estate professionals aren’t creating anything. All the motivating factors are there; cheap money, high supply, additional tax incentives, first time homebuyer programs, etc. Homebuyers are proceeding with extreme caution while investors are taking action. The irony is, the homebuyer is concerned about the market when the reality is the market truly has no impact on the buyers motivation. Regardless if the market is up or down, it doesn’t affect the motivating factors listed above. “We don’t want to overpay for our house.” Than don’t! In fact, you are more likely to underpay for your house in a down market. 2005 and 2006 homebuyers overpaid for their homes. That is clear. In this market, when you look at cost of money, the tax incentives, and the lower values, you can be prepared to buy a $300,000 house disguised as a $250,000 house.

- Tyler Phillips, Keller Williams Capital District Licensed Real Estate Agent

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Monday, July 13, 2009

Music Video: Black Lake by Real Estate [Live]

It's nice to start off a Monday with something fun and not too serious, so I thought I would share with you this live music video I randomly came across when looking for real estate news on the internet. You might be wondering how do you come across something like this when searching for real estate news, and the simple answer is the name of the band is called Real Estate. We all know most dedicated musicians do not acquire deep pockets until they make their big break, so in the meantime one of the band members, Etienne Duguay rents apartments for his landlord in exchange for free rent. If you are into Beach Rock/Psychedelic/Pop indie music, I think you will enjoy the soothing sounds of Real Estate.

Live from The Annex in NYC

+ Stereogum Review
+ Pitchfork Review

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Friday, July 10, 2009

Staten Island Still Going Strong

There is no doubt that every market in America has been affected by the economic crisis, but looking at such overheated markets as Florida, San Francisco, and Phoenix, New York's drop has been comparatively mild. And of the five boroughs it seems that Staten Island has been one of the less affected. Despite the boom in building on Staten Island in the last half decade or so, the New York Post and Brownstoner are reporting that Staten Island has the fewest stalled construction sites of all the boroughs. Naturally, this is not a statistic that one would consider an economic indicator, but it does mean that Staten Island continues to be a level headed investment neighborhood, unlike way overheated Williamsburg.

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Thursday, July 9, 2009

Less Traffic More Transit: Is it possible for Staten Island?

http://blog.silive.com/latest_news/2008/12/large_12-3-staten-island-traffic.jpg

As this article from Curbed states, Staten Island is "by far, the most transit-neglected borough in the city." But that might be changing with "Staten Island’s borough representative to the MTA Board wants to increase transit offerings on the car-dependent island." The article goes on to say that the SI transit outlook may actually be a rosy one due to Albany’s approval of a bailout package that allows the MTA refocusing on priorities such as the borough’s proposed light rail system helping to alleviate the borough’s clogged road network that will only get worse with projected population growth.

Curbed concludes that "In the end, the MTA should probably look at reviving the Brooklyn-to-SI underground subway connection. While the project would be expensive and wouldn’t become a reality for decades, a subway to Staten Island would do wonders for the mobility of a part of the city often considered the forgotten borough"



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Wednesday, July 8, 2009

CBS News Features Opal Ridge

The Estates at Opal Ridge on Staten Island, a development known for offering creative and great incentives when purchasing one of their homes is famous and has been featured on CBS News. The builder of Opal Ridge, Randy Lee, comments on how incentives have changed given the current market climate and it's not sufficient enough to simply offer a free refrigerator or dishwasher anymore. Developers need to be creative and offer substantial incentives that will make buyers comfortable in buying a home in the current market, such as Opal's new Assurance Program, "Security in Uncertain Times". Check out the below video.

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Tuesday, July 7, 2009

Video Feature: Freshkills Park


Fresh Kills Update from MAS on Vimeo.

+ Freshkills Park Blog

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Monday, July 6, 2009

Top 5 Mistakes Sellers Make When Showing Homes


Photo by Alex Beltechi on Flickr.

First impressions are very important and many sellers lose potential buyers by not adhering or not knowing the fundamentals to selling a home. That's why it's very important to either work with real estate professionals or educate yourself in the selling process in order to maximize your chances of selling your home.

Here are some mistakes sellers should avoid when trying to sell their home.

1. Being inflexible about scheduling.

When a buyer calls to schedule a showing, don’t be immovable about times/dates to show. Be as accommodating as possible within your schedule restraints, and understand that getting the buyer to see your home is a crucial step in obtaining an offer.

2. Hovering over buyers in the home.

Think of how you’d feel, walking through a home you’re interested in, with the seller following you around you and inspecting your every move. You might be afraid to really examine the home, feeling instead self-conscious about being watched.

3. Rushing buyers out the door.

Don’t pressure or rush the buyers! Give them space to think! Take buyers on a tour, and be available. But try to make them feel comfortable as much as you can.

4. Leaving everything a mess.

By all means, as soon as you decide to sell your home, clean it! Get rid of clutter and box up unused items. Think about showcasing your home’s features, not the features of your decorating style.

5. Not creating the right mood/atmosphere inside.

Before the showing time, open all the window shades, turn on lights and maybe even light some unscented candles. If you want to make cookies, make sure to have some available for the visitors. This is all part of getting you home staged; for more information on staging,

+ Buy Owner Blog

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Friday, July 3, 2009

5 Ways the New Housing Law Benefits Home Owners

The Helping Families Save Their Homes Act (S. 896) was recently passed by Congress and signed into law by President Obama last week. “There are five primary sections of the new law that will benefit home owners and consumers,” said Gibran Nicholas, Chairman of the CMPS Institute, an organization that certifies mortgage bankers and brokers.

Benefit #1 – Loan Modifications and Short Sales Should Get Easier
“Most mortgage loan modification plans announced by the government to date have been voluntary, meaning that mortgage companies do not have any legal obligation to participate,” Nicholas said. The new law changes that by requiring servicers to modify loans and approve short sales for consumers as long as three requirements are met:

  • Default on the mortgage needs to be reasonably foreseeable
  • The home owner must occupy the property as their primary residence
  • The mortgage company needs to be able to recover more from the loan modification or short sale than they would by sending the home into foreclosure

“These three requirements were also present in legislation that was signed into law in 2008,” Nicholas said. “However, this new law is more effective because it specifically states that servicers must consider any of the plans that have been endorsed by the U.S. Treasury Secretary – including the Obama administration’s Making Home Affordable plan – when making their decisions. This means that home owners should find it easier to qualify for a loan modification or short sale because their mortgage servicers are finally obligated by law to consider some of these new plans that have been completely voluntary up until this point. It may take several weeks for servicers to start implementing the new law, but the bottom line here is that help is finally on the way.”

Benefit #2 – New and Improved FHA Hope for Homeowners Program
“It has been reported that only one family has qualified for the FHA Hope for Homeowners program since it was launched last year,” Nicholas said. The new version of the program should generate a lot more participation from lenders due to four major updates:

  • The current mortgage lien holder is allowed to share in any appreciation in home value that occurs over time. Previously, first lien holders were excluded from equity sharing and they had little incentive to participate in the program.
  • The FHA premiums are reduced to “not more than” 3 percent up front and 1.5 percent annually. This means that the current lender may only need to reduce the principal to 90 percent of the current home value instead of the 87 percent that was required under the old plan.
  • This program can now be used in conjunction with the Obama administration’s Making Home Affordable program that pays servicers a fee to reduce the mortgage balance.
    Borrowers are no longer required to document their income through tax returns. The Department of Housing and Urban Development (HUD) will issue income documentation guidelines that may make it easier for some borrowers to qualify using alternative sources of income documentation.

Benefit #3 – $250,000 FDIC Insurance Limit Extended to December 31, 2013
“The $250,000 limit was set to expire at the end of 2009 and revert back to $100,000,” Nicholas said. “The new law prevents another large scale panic by extending the higher $250,000 limit for another four years. Also, the FDIC is now allowed to borrow up to $100 billion from the U.S. Treasury in case of emergencies. This is significant because insured deposits have tripled since the FDIC’s old borrowing limit of $30 billion was set during the 1990s. The FDIC is funded by the banking system and has never been funded by the U.S. government. They only borrowed once from the Treasury during the 1990s and paid back all the money in full with interest. As a temporary measure, the FDIC is allowed to borrow up to $500 billion from the U.S .Treasury throughout the end of 2009 as long as this is approved by a two-thirds majority vote of the FDIC Board of Directors and the Fed Board of Governors in consultation with the President and the US Treasury Secretary.”

Benefit #4 – Borrowers Must be Notified When Ownership of Their Mortgage Changes
“This is significant because previously, borrowers were only notified when their servicer changed,” Nicholas said. “The current mortgage crisis has proven that the owners of the mortgage – not the servicers that collect the monthly payments - are the real decision makers when it comes to approving loan modifications and short sales.”

Benefit #5 – Tenants are Better Protected in the Event of Their Landlord’s Foreclosure
“Many renters have been forced to leave their homes because of their landlord going through foreclosure,” Nicholas said. The new law provides two minimum guidelines that protect tenants:

  • Tenants are now allowed to occupy the property until the end of their lease term (even after the landlord goes through foreclosure) as long as the new buyer does not intend to occupy the new home as their own primary residence.
  • If the new buyer intends to occupy the home as their own primary residence, the tenant must be given a 90 day notice before being forced to leave.
via HousingZone.com.

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Thursday, July 2, 2009

Ted and Donna Brown's Stunning Victorian



A recent New York Times article that showcases Ted and Donna Brown's grand Victorian home in Stapleton, originally the home of George Bechtel's daughter Anne. The beer baron George Bechtel was said to be the richest man in Staten Island in 1888, and this house, a wedding gift, definitely reflects that with the splendid woodwork, and the intricate stained glass that fills the windows.

Be sure to take a tour of this architectural gem with the audio tour that comes with the article.

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