Real Estate Information Archive


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Home Prices to Rise 4% Per Year?

by Roberts Johnson and Rachel Diedrich, Real Estate B

Home Prices to Rise 4% Per Year?

Have home prices finally hit bottom? Many analysts think so. According to the latest forecast by Fiserv, the market watcher sees a big boost to home prices on the horizon, projecting that home prices will rise nearly 4 percent per year for the next five years.

The real estate markets expected to see the biggest increases in home prices will likely be those hardest hit the last few years by foreclosures, such as in Phoenix and Las Vegas, and areas where prices have fallen the most, according to Fiserv’s forecast.

Housings rising affordability mixed with falling inventories of for-sale homes are the main factors driving the expected price increases, according to Fiserv.

Initially, investors are expected to help drive most of this price increase, and then followed by first-time and trade-up buyers as they re-emerge in bigger numbers to the market.

Source: “U.S. Home Prices Could Rise 4% a Year, Forecast Says,” USA Today (May 8. 2012)


2 Neighbors Hold New Buyers of REO at Gunpoint

by Roberts Johnson and Rachel Diedrich, Real Estate B

2 Neighbors Hold New Buyers of REO at Gunpoint

It wasn’t exactly the welcoming response from the neighborhood a couple expected when they tried to enter a home they just purchased which had been in foreclosure. Their two new neighbors held them hostage at gunpoint.

Jean-Joseph Kalonji, 61, and his wife Angelica, 57, arrived at the home their son had just purchased to have the locks changed. But two men suddenly came up behind them as they were trying to get into the home, and pointed semi-automatic rifles at their backs.

"Shut up or I'll shoot," the men reportedly told the couple, having the couple lift their arms over their heads.

The men — a neighbor and his teenage son — had thought a robbery was in progress at the foreclosed home, which had stood vacant for several months. The men thought they were saving the day.

The couple claimed to be the new owners but couldn’t produce the closing paperwork so the men contacted police as they kept the couple held at gunpoint. The police arrested the couple, and they were sent to jail, charged with loitering and prowling.

The neighbors — Robert Canoles and his son — had been praised by police for busting what everyone assumed was a foiled robbery.

However, the tables turned when the couple and their son proved they were actually the new owners of the home. The charges against the couple were dropped, and the men now face charges for holding their new neighbors at gunpoint. The two men were arrested and charged with aggravated assault, false imprisonment, and criminal trespass.

Meanwhile, the couple’s son, Bruno Kalonji, says "we're waiting to move" into the home, but "we're still afraid of what the guy next door might do."

Source: “Newton County Neighbors Charged After Home Buyers’ Arrests,” The Atlanta Journal-Constitution (April 24, 2012)


More Single Family Homes Turned Into Rentals

by Roberts Johnson and Rachel Diedrich, Real Estate B

More Single Family Homes Turned Into Rentals

As the number of for-sale homes listed on the multiple listing service (MLS) drops, the number of single-family homes up for rent has been gradually increasing, RISMedia reports.

Single-family home rentals are a growing business, as more investors buy up foreclosures at bargain prices and then transform them into rentals.

About 16 percent of all listings on the MLS are rentals, which is more than double the number of rentals listed in 2006, RISMedia reports. Single-family rentals are often listed on the MLS by real estate brokers, whereas multifamily units typically aren’t.

The single-family rental market now accounts for “21 million rental units or 52 percent of the entire residential rental market,” according to a new study by CoreLogic.

Single-family rentals are usually very differently from multi-family homes. For example, rents for single-family rentals typically are 1.5 to 1.6 times higher than multifamily homes. Also, families and prior home owners tend to be attracted to single-family rentals whereas multifamily tenants tend to be younger, more mobile people who have never owned a home before.

Many of the single-family rental tenants nowadays are former home owners who had faced foreclosure and can no longer afford to own. According to CoreLogic, more than 3 million home owners have been turned into renters over the past five years due to foreclosure.

Source: “Single Family Rentals Now Exceed Multifamily,” RISMedia (April 23, 2012)


Top 5 Most Affordable Housing Markets

by Roberts Johnson and Rachel Diedrich, Real Estate B

Top 5 Most Affordable Housing Markets

Where is it cheapest to buy a home? Look in the Midwest for the bargains, according to a recent 24/7 Wall St. article, which used data to track the most affordable housing markets based on the lowest price per square footage.

“In general, the cities with the lowest real estate prices per square foot were cities that have suffered from poor economic conditions for some time,” 24/7 Wall St. notes in the article. “Many of these cities have begun to see interest from potential home owners and investors.”

The following cities have the lowest cost per square foot in the nation:

1. Detroit

Price per square foot: $62.45

Median list price: $84,900

2. Fort Wayne, Ind.

Price per square foot: $66.03

Median list price: $104,900

3. Toledo, Ohio

Price per square foot: $67.02

Median list price: $100,000

4. Indianapolis

Price per square foot: $68.56

Median list price: $133,000

5. Wichita, Kan.

Price per square foot: $69.04

Median list price: $129,900

The metro with the highest price per square footage? San Francisco, where the price per square foot averages $420.99, and the median list price is $611,700.

Source: “America’s Most and Least Affordable Cities to Buy a Home,” 24/7 Wall St. (April 23, 2012)


Freddie Reallocates More Funds to Boost Short Sales

by Roberts Johnson and Rachel Diedrich, Real Estate B

Freddie Reallocates More Funds to Boost Short Sales

Money used for a federal program aimed at helping 18 hard-hit housing market states can now reallocate its funds to help home owners complete short sales or other foreclosure alternatives, Freddie Mac announced Monday to mortgage servicers.

Mortgage giant Freddie Mac, along with Fannie Mae, has recently placed more focus on helping home owners complete short sales to avoid foreclosure. (Read more: Fannie, Freddie Speed Up Short Sales)

The Hardest Hit Fund reportedly has been an underused program by 18 states and the District of Columbia. The program is to provide home owner assistance to states through loan modifications, short sales, unemployment assistance, and mortgage principal reduction. But only 3 percent of the funds for the $7.6 billion program has been used as of Dec. 31.

Some of that money can now be allocated to helping more distressed home owners, including borrowers for short sales, deed-in-lieu of foreclosure, or relocation assistance, according to Freddie Mac.

Source: “Freddie Directs Servicers to use Hardest Hit Fund in Short Sales,” HousingWire (April 23, 2012)


Displaying blog entries 31-35 of 35

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