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Real Estate Briefing - Archive | December, 2012

S&P report examines 2013 outlook for commercial real estate

Posted on 21 December 2012 by Laxman  |  Email |Print

With some notable exceptions, a common theme has played out in European Commercial Real Estate (CRE) in recent years: Reduced capital values and economic weakness have undermined CRE loan performance across Europe, breaching covenants and pushing other loans into default.
To address investor questions on our view on the 2013 outlook for CRE, Standard & Poor’s Ratings Services has published a Credit FAQ titled “2013: Another Year Of Managing The Legacy Of The European Commercial Real Estate Boom.”……………………………………….Full Article: Source

U.S. home values poised for best year since 2005

Posted on 21 December 2012 by Laxman  |  Email |Print

Owners of homes in the U.S. saw the value of their real estate increase by an average of six per cent in 2012, the first annual increase in more than five years.
Data tracking firm Zillow Inc. said Thursday it expects U.S. homes will have increased in value by a cumulative $1.3 trillion US in 2012, bringing the total value of residential real estate to $23.7 trillion. U.S. real estate lost $792 billion in value last year, the firm says………………………………………..Full Article: Source

U.S: Home prices soar, but not in largest markets

Posted on 21 December 2012 by Laxman  |  Email |Print

Real estate research firm Zillow reports that November home prices rose 5.2% over the same month of last year. This was the largest improvement since August 2006. But the national data was misleading. The recovery has been uneven and has left several markets behind. The housing market remains deeply troubled in some parts of the United States.
Zillow’s numbers show that some of the most severely damaged markets have recovered the most over the past year. But they have not all recovered to prerecession levels, which makes the improvements at a level that does not wipe out entirely underwater mortgages, and the ability to sell homes for more than the value they had six years ago………………………………………..Full Article: Source

The biggest billionaire home sales of 2012

Posted on 21 December 2012 by Laxman  |  Email |Print

If the housing market as a whole has been limping back to health, the super luxury end has been sprinting. Chalk it up to billionaires bullish on real estate. From coast to coast, 2012 has welcomed a slew of record-breaking home sales as the world’s richest have snapped up multi-million dollar penthouses and mansions in major U.S. cities.
Take Miami. Despite the fact that foreclosure filings remain high and home prices are still roughly 40% lower than their 2007 peak, the luxury market clocked a series of stratospheric transactions that signify not only a resurgence in the Magic City’s high-end but the emergence of a new mind-bogglingly big price tier………………………………………..Full Article: Source

Housing poised to bolster U.S. growth as sales rise: Economy

Posted on 21 December 2012 by Laxman  |  Email |Print

Sales of previously owned homes climbed to a three-year high in November, reinforcing forecasts that the industry is set to contribute to U.S. annual economic growth for the first time since 2005.
Purchases of existing houses increased 5.9 percent to a 5.04 million annual rate, the most since November 2009, the National Association of Realtors reported today in Washington. The median forecast of 82 economists surveyed by Bloomberg projected a 4.9 million rate………………………………………..Full Article: Source

Real estate in 2013: A more selective market

Posted on 21 December 2012 by Laxman  |  Email |Print

After several substandard years of performance, the real estate market finally came back to life in 2012. And while still not exactly healthy yet, the sector should keep building on this nascent momentum off the bottom — albeit slowly — into 2013.
As 2012 ends, it’s apparent that the positives have outweighed the negatives. This year saw the continuation of historically low interest rates and selling prices 35% to 60% below the inflated levels of 2006. This combo turned 2012 into a buyer’s market once more, with inventories of distressed sales shrinking from previously elevated levels, and median housing prices up nationwide from year-ago figures………………………………………..Full Article: Source

Home sales likely to fall in Canada in 2013, says real estate association

Posted on 21 December 2012 by Laxman  |  Email |Print

The Canadian Real Estate Association (CREA) has updated its forecast for home sales as demand slows and predicts a 2% fall in transactions in 2013 but a 0.3% rise in prices. When CREA’s last resale housing forecast was published in September, activity showed the first signs of slowing in the wake of new mortgage lending regulations.
It said that demand has remained at lower levels, and this trend is expected to persist in coming months, adding that lower than projected third quarter sales have downgraded the prospects for activity this year in almost every province………………………………………..Full Article: Source

European housing markets ‘remain extremely depressed’

Posted on 21 December 2012 by Laxman  |  Email |Print

Many European housing markets remain extremely depressed, and continue their rapid spiral downwards, the Global Property Guide has reported. House price falls are accelerating in Greece, Spain, Netherlands, Portugal, Croatia and Lithuania, said the property research company.
Of the 23 European countries included in its regular survey, 14 recorded house price falls in the third quarter of 2012 while only nine experienced house price increases. The nine weakest housing markets in the survey were all in Europe. Meanwhile the Asian housing market surge has weakened. Seven of the 10 Asian housing markets included in the survey performed worse this year than last - although the survey indicated that Asia ’s biggest housing market, China, was recovering………………………………………..Full Article: Source

U.K: House market up 5pct on previous year

Posted on 21 December 2012 by Laxman  |  Email |Print

New figures show more houses sold in 2012 than expected, as Funding for Lending scheme kicks in. More homes have been sold in the UK in 2012 than previously thought, as a result of greater mortgage availability, industry figures suggest.
There were 930,000 property transactions in 2012 – 13% more than the previous estimate of 825,000 and 5% more than 2011, according to the Council of Mortgage Lenders (CML)………………………………………..Full Article: Source

UK: Housing market recovery ’should continue next year’

Posted on 21 December 2012 by Laxman  |  Email |Print

There are “grounds for optimism” that the housing market recovery should continue next year, said the Council of Mortgage Lenders, as the Funding for Lending Scheme spurs sales. In its market forecasts for the coming year, CML said that it expected 950,000 property transactions and £156bn of gross lending.
But, the organisation predicts that those levels will fall back a little in 2014 as the boost from the Government’s cheap loans scheme, the Funding for Lending programme, fades………………………………………..Full Article: Source

For expats in Riyadh, housing is costly and hard to find

Posted on 21 December 2012 by Laxman  |  Email |Print

The message boards of online expat forums in Saudi Arabia tell their own story: increasingly frantic inquiries from new arrivals looking for somewhere to live in a very tight market. “Help! I can’t find anywhere to live. All the housing managers just tell me their waiting lists are months and months long,” posted a British man seeking a home for his family.
Expatriates moving to Riyadh, the capital of the Middle East’s largest economy, face long waits for places in housing compounds where rents have risen by more than 10 percent a year for the past four years, according to property consultants Jones Lang LaSalle………………………………………..Full Article: Source

Mongolia: Property – bubble or boom?

Posted on 21 December 2012 by Laxman  |  Email |Print

Confidence that Mongolia’s resource wealth will generate unprecedented expansion in its real estate market has seen prices rise and many of Ulaanbaatar’s prime properties snapped up. However, the experience of other countries that have had similar resource-related property growth suggests it may not last forever.
In September, Export Development Canada, the state-owned export credit agency, warned that due to bank credits rising in excess of 50% year-on-year in 2012, a real estate “bubble” had appeared in the capital, which is likely to have a negative impact on the banking sector………………………………………..Full Article: Source

India: PE fund exits in real estate fall in 2012

Posted on 21 December 2012 by Laxman  |  Email |Print

Private equity (PE) fund exits in the real estate space have fallen sharply this year compared with 2011, with limited liquidity in the market, a falling trend in property sales and some funds willing to wait for better returns.
There have been PE fund exits to the tune of $288 million (around Rs.1,578 crore today) in the real estate sector so far this year, down from $457.32 million in 2011, according to VCCEdge, which compiles data on venture capital and private equity deals. This exit value includes mainly full exits and those that are disclosed. (That’s in contrast with partial exits where the fund receives money in instalments.)……………………………………….Full Article: Source

HK: Does housing plan really care about trying to cool market?

Posted on 21 December 2012 by Laxman  |  Email |Print

Albert Cheng says many alternative plans exist to help increase public housing, yet the chief executive and his team are not tapping them. Chief Executive Leung Chun-ying won the election and got to where he is because of the support from Beijing’s liaison office in Hong Kong. After six months in office, he has made no contributions to show for it. To be honest, he is merely a “paper general”, which means he’s all talk and no action.
Being a paper general, he will disappoint us with his empty promises on policies such as his long-term housing strategy. Most of us will remember the notorious plan to build 85,000 flats annually that he proposed to former chief executive Tung Chee-hwa in 1997………………………………………..Full Article: Source

H.K. property overheating poses financial risks, HKMA says

Posted on 21 December 2012 by Laxman  |  Email |Print

Hong Kong’s overheated property market is increasingly disconnected from the rest of the economy and poses “macro-financial risks,” the city’s monetary authority said.
Loose global monetary conditions and low interest rates may fuel mortgage borrowing that intensifies “the disconnect between property prices and economic fundamentals,” the Hong Kong Monetary Authority said yesterday in a quarterly report………………………………………..Full Article: Source

Southeast Asia property market to surge within 10 years

Posted on 21 December 2012 by Laxman  |  Email |Print

Many factors lead to the ascendancy of SEA in the world’s stage in real estate, among them the region’s huge upside potential Southeast Asia (SEA) will drive the property scene ‘crazy’ within the next 10 years and Malaysia will be among the best, says Gavin Tee, an international property consultant and speaker.
“Two years ago, I predicted that SEA will be the focus of the world’s real estate destination and this has been borne out by events following that,” he said, referring to the huge interest generated in recent times by SEA nations like Singapore, Laos, Myanmar, Indonesia and Malaysia………………………………………..Full Article: Source

VietNam: The major characteristics of the real estate market in 2012

Posted on 21 December 2012 by Laxman  |  Email |Print

One of the hottest topics of the discussions on the real estate market is how high the apartment prices should be to fit the people’s pockets. The debate has been raised after the investor of the Dai Thanh project in Thanh Tri district in Hanoi marketed a certain amount of apartments priced at 10 million dong per square meter, the surprisingly low prices if compared with the market prices – tens of millions of dong.
The project’s investor then received violent criticism from other real estate developers, who believed that the investor attempted to dump products in the market to wipe down its rivals………………………………………..Full Article: Source

Owning a home unattainable for many Taiwanese

Posted on 21 December 2012 by Laxman  |  Email |Print

Owning a home is the dream of many in Taiwan, but that dream is becoming unattainable for some, as speculative buying has driven prices to unaffordable levels. This has become a big problem as young people are putting off starting a family - exacerbating the already low birth rate - and many are growing increasingly resentful of this symptom of the widening wealth gap.
In the last couple of years, groups have been formed to lobby for housing affordability and protests have been held. The last presidential election saw President Ma Ying-jeou re-elected on a much smaller margin of votes - partly because of widespread discontent over this issue………………………………………..Full Article: Source

Australia: The 10 insights into the 2013 property market: What, why, when and where to look

Posted on 21 December 2012 by Laxman  |  Email |Print

Unless you have a reliable crystal ball, predicting how the property market will shape up in 2013 is a tough call to make. Uncertainties include how the global economy will play out and impact on Australia, the extent of the slowdown in the mining investment boom and how quickly non-mining sectors like retailing, housing, manufacturing and tourism can pick-up the slack.
Economists are tipping interest rates to fall further in 2013 and reach record lows, which will be good news for mortgage holders, but astute buyers and investors will recognise the economic warning signs………………………………………..Full Article: Source

Sea changes in the Caribbean

Posted on 21 December 2012 by Laxman  |  Email |Print

Navigating the ups and downs of the island market, where slashed prices and a vast stock of empty luxury condos are attracting vacation-home buyers looking for deals. On a warm December evening on the Bahamian island of Great Exuma, vacationers mingled at a dinner party in a 5,400-square-foot, four-bedroom penthouse suite overlooking the ocean.
A chef cooked lamb and sautéed vegetables as Peter Nicholson, the condominium development’s primary investor, gave a tour of the sprawling apartment—which is on the market for $2.99 million………………………………………..Full Article: Source

Sabeer Bhatia’s next, real estate software

Posted on 21 December 2012 by Laxman  |  Email |Print

For Sabeer Bhatia, the search for the next Hotmail continues. The last idea from the co-founder of Hotmail, JaxtrSMS, a mobile application that allowed users to send a text message to any mobile in the world for free didn’t take off, with Bhatia blaming its revenue model.
“I firmly believe that advertising in the mobile space, just basically any form of advertising over mobile phones doesn’t work. The sheer number of apps that are now present on the market ensures that you can’t make money off of it through advertising,” he said, adding that this was the current problem with Facebook’s mobile revenue model as well………………………………………..Full Article: Source

The top towns for sales of $10 mln homes

Posted on 20 December 2012 by Laxman  |  Email |Print

A new report from Coldwell Banker shows that sales and listings of homes priced at $10 million or more have more than doubled in some communities in the past year. While the market for these mega-mansions remains tiny nationally, they are becoming downright common in a select few towns favored by the super-rich.
The top zip code for homes sold for $10 million or more is Beverly Hills, with 19 mega-homes sold between November 2011 and October of 2012. Tied for second place was Aspen, Colo., and Santa Barbara, both with 13 homes sold for $10 million or more………………………………………..Full Article: Source

Top 5 predictions for the housing market in 2013

Posted on 20 December 2012 by Laxman  |  Email |Print

What a difference a year makes. After slogging through years of crippling property value declines and foreclosures, the housing market finally gained traction in 2012 as strengthening home prices, better sales, and more construction propelled the sector to be one of the only bright spots in the economy.
But there’s still a long way to go when it comes to the return of a “normal” housing market, says Trulia’s Chief Economist Jed Kolko. Here’s what he said we can expect from the housing market in 2013………………………………………..Full Article: Source

Which are the hottest US property markets?

Posted on 20 December 2012 by Laxman  |  Email |Print

American property values plummeted 34 per cent after the 2006 market vertex according to the S & P Case-Shiller Home Price Index. Values hit rock bottom in late 2009 and remained relatively flat until this year’s supply and demand imbalance resulted in double-digit price growth in most major markets.
New York: The number of condominium sales surged 22.1 per cent over the previous quarter to 1,132 sales according to a recent report released by Prudential Douglas Elliman Real Estate………………………………………..Full Article: Source

America’s friendliest towns

Posted on 20 December 2012 by Laxman  |  Email |Print

Residents say Sammamish, Wash., is one friendly place. Wives in the suburban Seattle community have been known to swap recipes while their husbands borrow tools. Children play in the cul-de-sacs and walk to school by themselves if they live close enough.
“I have never lived in a community that’s more welcoming,” says Katy Chung, a six-year resident and a stay-at-home mother. “When we first moved here, neighbors came out of their homes to introduce themselves and give me delivery menus!” That friendliness is not unusual in Sammamish, adds Chung, who now joins her neighbors in welcoming newcomers to the neighborhood………………………………………..Full Article: Source

Building permits increase as U.S. housing rebounds: Economy

Posted on 20 December 2012 by Laxman  |  Email |Print

The number of building applications issued in November rose to a four-year high, a sign the U.S. housing-market recovery will extend into 2013. Permits, a proxy for future construction, climbed 3.6 percent to an 899,000 annual rate, the most since July 2008 and exceeding the 875,000 median forecast of 58 economists surveyed by Bloomberg, Commerce Department figures showed in Washington.
While housing starts fell 3 percent to an 861,000 pace, the average rate from September through November was the strongest since the three months ended August 2008………………………………………..Full Article: Source

Turnaround continues for CMBS market in 2013, but fiscal cliff bears watching

Posted on 20 December 2012 by Laxman  |  Email |Print

The commercial real estate market, and the U.S. CMBS market in particular, are likely to see steady improvement in the New Year, says Huxley Somerville, head of US CMBS at Fitch Ratings in New York. “A slow increase in volume is preferable; we would not like to see a 50% increase over 2012,” he says. “A 15% to 20% increase would be much better. Otherwise, competition would lead to the erosion of underwriting standards.”
“We expect 2012 CMBS issuance to finish at roughly $45 billion, with a slight increase to $50 billion as a possibility in 2013,” says Zanda Lynn, managing director at Fitch Ratings………………………………………..Full Article: Source

UK: House prices to stay in doldrums for 2013, estate agents predict

Posted on 20 December 2012 by Laxman  |  Email |Print

Property experts say even London house prices will tread water over coming year. Britain’s already-depressed housing market will stay firmly in the doldrums in 2013.
That is the unanimous view of estate agents and property consultants. Most say prices will dip up to 4% in northern England, Scotland and Wales, while values will be roughly static in southern England and London. Even prime central London – where prices have risen an average 30% since 2007 thanks to an influx of affluent buyers from overseas – will tread water in the coming year………………………………………..Full Article: Source

UK rental property market ‘more stable’ in 2013

Posted on 20 December 2012 by Laxman  |  Email |Print

The UK rental property market is set for a ‘more stable’ year in 2013, one agency predicts. ‘The high demand and lack of stock which, over the past 18 months, has forced rapid rent rises in the areas within which we operate, ranging from between 10% and 30%, were simply not sustainable,’ comments Caroline Kavanagh, Managing Director of Townends.
‘Rents now appear to have peaked for the time being as a steadier number of instructions make tenants feel more inclined to consider the options out there, although this has left some landlords’ rental expectations for continual rises in the New Year, a little out of kilter………………………………………..Full Article: Source

French 2012 investment volumes exceed expectations, says JLL

Posted on 20 December 2012 by Laxman  |  Email |Print

Investment in commercial real estate in Paris is likely to surpass earlier full-year expectations of EUR 8-10 bn, with the current forecast put at EUR 10-11 bn worth of deals, according to Stephan von Barczy, managing director of French capital markets at Jones Lang LaSalle.
‘Investment transactions amounted to around EUR 9 bn already at end-November, suggesting that there is potential for a volume similar to 2011, when a total of EUR 12 bn of assets traded in the market,’ he told PropertyEU………………………………………..Full Article: Source

Spanish house prices continue downward spiral

Posted on 20 December 2012 by Laxman  |  Email |Print

Investors seeking bargain Spanish real estate have never been as spoilt for choice as they are at the moment, with property prices falling yet again. The latest figures from Instituto Nacional de Estadistica revealed that prices plummeted by a massive 15 per cent in the penultimate quarter of 2012.
This is up on the second quarter, where a fall of 14.4 per cent was noted. According to the Housing Price Index, this downward spiral is the result of a tight squeeze on credit, stalled demand and oversupply. Spain is also currently battling to come out of its second recession in three years, with unemployment increasing to over 25 per cent………………………………………..Full Article: Source

UAE property market to remain a tale of two different cities

Posted on 20 December 2012 by Laxman  |  Email |Print

The property market in the UAE is set to remain a “tale of two very different cities” next year according to a report from the property advisory firm Jones Lang LaSalle. In its review of the year for the Emirates, the company said there were “grounds for cautious optimism about the prospects for the Dubai real-estate market in 2013″ while “demand remains suppressed in the short term” in Abu Dhabi.
Jones Lang LaSalle reports that while property has lagged the overall economy in Dubai this year, it predicts rents and prices will rise in most of the city’s sectors………………………………………..Full Article: Source

India: 10 hot property markets in 2013

Posted on 20 December 2012 by Laxman  |  Email |Print

The year 2012 hasn’t been great for the real estate sector, and things won’t be much next year either, says a report by PropEquity. While the residential sector witnessed the maximum deals this year, private equity investment in the sector dried up, an indication of the overall negative sentiment plaguing the economy.
According to the report, the negative sentiment of 2012 may get carried forward into the first quarter of the next financial year, though the Real Estate Regulation Bill and the Land Acquisition Bill may help the sector revive thereafter………………………………………..Full Article: Source

China property market revives

Posted on 20 December 2012 by Laxman  |  Email |Print

After waiting for a year, accountant Qi Youdi has bought a new home in the eastern Chinese city of Hangzhou, among the millions of buyers bringing the country’s property market back to life.
For the past two years, China has sought to control residential property prices with measures including restrictions on second and third home purchases, higher minimum downpayments, and annual taxes in some cities on multiple and non-locally-owned homes………………………………………..Full Article: Source

HKMA warns of risk to economy from soaring property prices

Posted on 20 December 2012 by Laxman  |  Email |Print

The Hong Kong Monetary Authority has sounded another warning about the risk of runaway home prices to the economy, which also faces a poor short-term outlook because of weak foreign demand.
In its latest quarterly report on the health of the city’s economy and the banking sector, the authority said the city could be thrown back into recession if the European sovereign debt crisis escalated and if the United States failed to moderate tax increase and government spending cuts due to take effect next month………………………………………..Full Article: Source

If this happens, Singapore home prices will fall

Posted on 20 December 2012 by Laxman  |  Email |Print

While Singapore’s trade dependent economy has had a tough 2012, even teetering on the brink of a recession earlier this year, the city state’s residential property market has remained robust, with prices among the highest in the world.
Private home prices in this Southeast Asian financial hub have risen a whopping 56 percent since the global financial crisis, and most analysts expect this upward trajectory to continue into the new year, even as the market faces a drop in sales volumes amid a somber growth outlook………………………………………..Full Article: Source

Jakarta to have biggest gain in office rents through 2014

Posted on 20 December 2012 by Laxman  |  Email |Print

Jakarta is likely to have the biggest jump in office rents globally through 2014 as technology and financial-service firms expand into emerging markets, Cushman & Wakefield said. Office rents probably will climb 79 percent in the Indonesian capital from the end of last year through the fourth quarter of 2014, according to the brokerage’s Global Office Forecast.
Sao Paulo is likely to have the second-biggest increase, at 59 percent, followed by San Francisco with a 33 percent gain, according to the report. London rents are expected to rise 21 percent, ranking it No. 10 on Cushman’s list………………………………………..Full Article: Source

Speculators fuel Taiwan’s property price rise(Video)

Posted on 20 December 2012 by Laxman  |  Email |Print

Property prices in Taiwan have risen by nearly 60% in major cities over the past three years. The rise has been fuelled in part by speculators who are keen to cash in on low interest rates in the country.
However, as Cindy Sui reports from Taipei, purchasing property is becoming increasingly tough for many due to speculative buying………………………………………..Full Article: Source

Australia: Real estate’s best of the best

Posted on 20 December 2012 by Laxman  |  Email |Print

Houses going for free, multimillion-dollar hovels, mansion fire sales by the dozen, and rates heading to zero. Bargain hunting and runaway extravagance set the buying extremes for this year’s property market.
A two-tier real estate sector emerged as investors embraced low rates and returned to bricks and mortar but cautious owner-occupiers continued to hold off selling, and first-home buyers stayed on the sidelines. Record low interest rates and consumer jitters created a house divided………………………………………..Full Article: Source

RBA governor plays down housing market concerns

Posted on 20 December 2012 by Laxman  |  Email |Print

RBA governor Glenn Stevens has played down concerns over house prices crashing, but has indicated the RBA would act if prices started rising by 10% to 20% per year alongside rising household debt levels.
In a recent Property Observer article, Stevens urges Australians to be content with more modest increases in house prices, describing double-digit house price growth as both “puzzling and “troubling”………………………………………..Full Article: Source

Real estate with a cause: Identifying investments that serve a triple bottom line

Posted on 20 December 2012 by Laxman  |  Email |Print

A derelict medical center for veterans in Salem, Va., that was transformed into an energy efficient place to live and work — thanks to a mélange of private and public funds — proves that investors can make money and support social change at the same time.
That was the message of a panel discussion at the recent Wharton Social Impact Conference focused on innovative approaches to financing socially responsible projects in the real estate sector. How much money is potentially available for building while also serving social and environmental benefits is anybody’s guess………………………………………..Full Article: Source

2013: How rising prices could boost housing demand

Posted on 19 December 2012 by Laxman  |  Email |Print

Home prices finally hit a bottom in 2012. So will 2013 be the year of recovery or relapse? This is the second in a series of blog posts about where housing is headed next year. Potential buyers now have something they haven’t had in a long time: urgency (save for a few months when the government was paying people to buy homes with a first-time home-buyer tax credit).
This next year will be the first time since 2006 where prices ended the previous year in positive territory. Surveys already show that buyers’ expectations of future home prices have improved throughout the past year………………………………………..Full Article: Source

U.S. builder confidence continues to improve in December

Posted on 19 December 2012 by Laxman  |  Email |Print

According to National Association of Home Builders/Wells Fargo Housing Market Index (HMI) released today, builder confidence in the market for newly built, single-family homes rose for an eighth consecutive month in December to a level of 47. This marked a two-point gain from a slightly revised November reading, and the highest level the index has attained since April of 2006.
“Builders across the country are reporting some of the best sales conditions they’ve seen in more than five years, with more serious buyers coming forward and a shrinking number of vacant and foreclosed properties on the market,” observed NAHB Chairman Barry Rutenberg, a home builder from Gainesville, Fla………………………………………..Full Article: Source

U.S: Housing comeback in 2013?

Posted on 19 December 2012 by Laxman  |  Email |Print

Recent data relating to new home sales, housing permits, declining inventory levels, and rising housing prices are sufficient indicators of an improving U.S. housing market. The sector suffered since 2006 when house prices had fallen by more than 30% across the nation. The decline had been twice as much in some of the metros. Declining house property ate away home equity, wiping out trillions of dollars held by individual households.
Delinquency and foreclosure rates on home mortgages were at an all time high, at levels unseen since the Great Depression. Recessionary conditions along with rising foreclosures in recent years caused the national homeownership rate to decline from its 2004 peak of 69% to under 66% in 2011………………………………………..Full Article: Source

US housing market is healing

Posted on 19 December 2012 by Laxman  |  Email |Print

Now is the time to invest in US property, with the market showing signs of making a full recovery. Frank Nothaft, Freddie Mac vice-president and chief economist, explained real estate has defied the expectations of analysts and is fighting back in several key areas.
“The last few months have brought a spate of favourable news on the US housing market with construction up, more home sales, and home-value growth turning positive,” he said. “This has been a big change from a year ago, when some analysts worried that the looming ’shadow inventory’ would keep the housing sector mired in an economic depression………………………………………..Full Article: Source

U.S. Housing market index rises to new six-year high in December

Posted on 19 December 2012 by Laxman  |  Email |Print

Homebuilder confidence in the U.S. improved for the eighth straight month in December, according to a report released by the National Association of Home Builders on Tuesday, with the housing market index rising to a new six-year high.
The report showed that the NAHB/Wells Fargo Housing Market Index climbed to 47 in December from a revised 45 in November. Economists had expected the index to edge up to 47 from the 46 originally reported for the previous month………………………………………..Full Article: Source

Fannie Mae: Housing market ‘has turned the corner’

Posted on 19 December 2012 by Laxman  |  Email |Print

Despite lower expectations for the economy’s progress as a whole this quarter, home sale and price trends suggest housing finally represents “a tailwind to growth,” according to a monthly economic outlook released today by Fannie Mae’s Economic & Strategic Research Group.
“The housing market has turned the corner and a sustained recovery is under way,” the report said, despite some significant challenges that remain ahead, including tight lending conditions, uncertainty surrounding mortgage regulations, and the fiscal cliff………………………………………..Full Article: Source

How to profit off a housing market recovery

Posted on 19 December 2012 by Laxman  |  Email |Print

Recently, JP Morgan Chase & Co (JPM) provided coverage on the housing market and released projections in regards to where home prices are headed over the next year.
JPM provided two scenarios that are both favorable considering how the bearish scenario would probably satisfy the vast majority of homeowners in the US. JPM’s bullish scenario projected home prices could spike as high as 9.7% in 2013, while the bearish scenario suggests a 3.4% increase………………………………………..Full Article: Source

Best and worst real estate markets in Canada

Posted on 19 December 2012 by Laxman  |  Email |Print

The Canadian Real Estate Association released its latest home sales data on Monday, showing a nearly 12-per-cent year-on-year drop in the number of home sales in November. But what emerged is a picture of many, very different housing markets. Though the overall numbers were negative, two of every five local markets actually saw a pick-up in the number of sales.
To figure out which markets are strongest and which are weakest, we looked at CREA’s total dollar value statistics, which measure the market by adding up the value of all sales in a given area………………………………………..Full Article: Source

Canadian housing will not go the way of the U.S.

Posted on 19 December 2012 by Laxman  |  Email |Print

There’s a lot of chatter today on the Canadian real estate market — that Canada will soon go the way of the U.S. real estate market circa the 2000’s. Those who write such poppycock (been dying to use one of Conrad Black’s favourite words) have not taken the time to read a study or two of the underlying conditions in the Canadian market, compared to the U.S. in the lead up to the mortgage crisis.
First off, let’s be clear. The Canadian market is starting to correct. Housing starts are falling, though average housing resale prices are still holding up relatively well in most areas………………………………………..Full Article: Source

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