Tuesday, July 22, 2014
Lloyd Segal Real Estate News - Why We Fall in Love—With Houses
Falling in love can be wonderful—and finding the perfect house can make a house-hunter weak in the knees.
As Valentine’s Day approaches, a survey by Realtor.com shows that falling head-over-heels for a house is fairly common—69% of respondents reported that they have had a home crush. House-hunters with a “home crush,” as defined in the survey, are drawn to the same house again and again. Realtor.com surveyed 1,082 individuals from Jan. 9 to Jan. 20 who reported having had a home crush.
Many people approach house hunting the same way they approach dating, by checking compatibility and fit, but the intangible factors are what tips a house from crush to true love, says Leslie Piper, Realtor.com’s consumer-housing specialist and an agent with Pacific Union in Lafayette, Calif.
“You have to make sure you know what’s really out there. You evaluate what is a turn-on and turn-off, and perhaps you’ll fall in love,” Ms. Piper says.
Also like dating, men and women approach a home crush very differently.
Some key findings from the survey:
Women are more likely to crush on home that is out of their price range: 41% of women said their home crush is out of their price range, compared with 30% of men.
Men tend to move from one home crush to another: 36% of men said they find a new home crush weekly, compared with 29% of women.
Outdoor living spaces are the most attractive home attributes to both men and women: 54% of women and 46% of men said outdoor living spaces like backyards, decks and patios make them fall in real-estate love. In addition, 42% of women preferred open-floor plans, and 40% of men indicated garages.
Nearly 80% of homebuyers first find their home crush on their computer. After that, about one-third then decide to go see the house in person.
About 16 years ago, Brenda Van Fossen of Lynchburg, Va., stumbled on a 2,600-square-foot, contemporary-style house with 10-foot ceilings and an open-floor plan. She called up the agent and was disappointed to hear that the house was already under contract.
But Ms. Van Fossen couldn’t get the house off of her mind. A year later, she found out that the house was back on the market and purchased it for roughly $170,000.
Ms. Van Fossen, who became a real-estate agent in 2006, says she has never felt this way about a house before: “That first night there, it sounds silly, but it was like I was in love.”
But love can have a downside—heartbreak.
“You have to be realistic. When you’re looking at homes outside of your price range, the last thing you want to be is disappointed. It would be like falling in love with someone on the other side of the country,” Ms. Piper says. To move on, she suggests keeping an open mind and perhaps considering several houses at the same time in case the first choice doesn’t work out.
Fortunately, unlike with relationships, picky homebuyers do not need to limit themselves to what’s on the market, she says. Rebuilding, redecorating or building from scratch are an option, too.
Lloyd Segal news wsj.com
As Valentine’s Day approaches, a survey by Realtor.com shows that falling head-over-heels for a house is fairly common—69% of respondents reported that they have had a home crush. House-hunters with a “home crush,” as defined in the survey, are drawn to the same house again and again. Realtor.com surveyed 1,082 individuals from Jan. 9 to Jan. 20 who reported having had a home crush.
Many people approach house hunting the same way they approach dating, by checking compatibility and fit, but the intangible factors are what tips a house from crush to true love, says Leslie Piper, Realtor.com’s consumer-housing specialist and an agent with Pacific Union in Lafayette, Calif.
“You have to make sure you know what’s really out there. You evaluate what is a turn-on and turn-off, and perhaps you’ll fall in love,” Ms. Piper says.
Also like dating, men and women approach a home crush very differently.
Some key findings from the survey:
Women are more likely to crush on home that is out of their price range: 41% of women said their home crush is out of their price range, compared with 30% of men.
Men tend to move from one home crush to another: 36% of men said they find a new home crush weekly, compared with 29% of women.
Outdoor living spaces are the most attractive home attributes to both men and women: 54% of women and 46% of men said outdoor living spaces like backyards, decks and patios make them fall in real-estate love. In addition, 42% of women preferred open-floor plans, and 40% of men indicated garages.
Nearly 80% of homebuyers first find their home crush on their computer. After that, about one-third then decide to go see the house in person.
About 16 years ago, Brenda Van Fossen of Lynchburg, Va., stumbled on a 2,600-square-foot, contemporary-style house with 10-foot ceilings and an open-floor plan. She called up the agent and was disappointed to hear that the house was already under contract.
But Ms. Van Fossen couldn’t get the house off of her mind. A year later, she found out that the house was back on the market and purchased it for roughly $170,000.
Ms. Van Fossen, who became a real-estate agent in 2006, says she has never felt this way about a house before: “That first night there, it sounds silly, but it was like I was in love.”
But love can have a downside—heartbreak.
“You have to be realistic. When you’re looking at homes outside of your price range, the last thing you want to be is disappointed. It would be like falling in love with someone on the other side of the country,” Ms. Piper says. To move on, she suggests keeping an open mind and perhaps considering several houses at the same time in case the first choice doesn’t work out.
Fortunately, unlike with relationships, picky homebuyers do not need to limit themselves to what’s on the market, she says. Rebuilding, redecorating or building from scratch are an option, too.
Lloyd Segal news wsj.com
Monday, July 14, 2014
Foreclosure crisis is drawing to a close
Foreclosure crisis is drawing to a close
Our long national foreclosure nightmare may be over.
The number of new foreclosure filings in August hit its lowest level in nearly eight years, according to RealtyTrac, an online marketer of foreclosed properties.
Soaring home prices and a big decline in underwater borrowers -- those who owe more on their mortgage loans than their homes are worth -- have helped drive the trend.
August's initial foreclosure filings fell 44% to 55,575, just below the 56,063 that were recorded in October 2005. The foreclosure crunch began in summer 2006, at about the same time that housing prices hit their peak.
Lloyd Segal Foreclosure
Silicon Valley Dominates 2013 List Of America's Most Expensive ZIP Codes
In Atherton, Calif., 94027, the most expensive home on the market is listed for million. But perhaps the best gauge of this Silicon Valley enclave’s exclusivity is the price of a starter home. The cheapest house for sale in Atherton, a 1,194-square-foot, two-bedroom bungalow on a 6,000-square-foot lot, has a .2 million price tag.
The median price of the 50 single-family homes that were listed for sale over the summer in Atherton 94027 is .67 million, making it the most expensive ZIP code in America.
“Atherton is by far the closest, most centrally located of all the super high-end communities in Silicon Valley,” says Ken Deleon, a broker in Silicon Valley whose eponymous realty firm has closed 5 million in sales in the first three quarters of 2013. “Of all the high-end luxury cities [in the Valley] it is doing the best.”
Cash-flush foreign buyers from China and India have been moving in, joining the wealthy Americans who live there. Six FORBES 400 billionaires reside in Atherton, including Google Chairman Eric Schmidt, discount brokerage tycoon Charles Schwab, and HP chief Meg Whitman. “Just two days ago I was showing a million home in Atherton to a local tech CEO of a publicly traded company,” adds Deleon.
The top 10 of our list of Most Expensive ZIP Codes is dominated this year by California’s Bay Area. Atherton is followed in second place by Los Altos Hills, 94022 (not to be confused with neighboring Los Altos); Belvedere, 94920, at No. 4; and Portola Valley, 94028, at No. 9. Another seven Bay Area ZIPs round out the top 50, including Hillsborough’s 94010 (No. 13), Woodside’s 94062 (No. 22) and Palo Alto’s 94301 (No. 38). For more information about Lloyd Segal visit http://www.lloyd-segal.net
96,000 borrowers shortchanged in mortgage settlement
Checks meant to compensate mortgage borrowers who fell victim to foreclosure abuses have finally started arriving in mailboxes -- but many of the checks have come up short.
Due to a processing error, 96,000 borrowers received checks for less than what they were owed under a settlement reached between the government and 13 mortgage servicers, the Federal Reserve said.
Under the terms of the settlement, 4.2 million borrowers who went through foreclosure proceedings during 2009 and 2010 are eligible for checks of between 0 and 5,000, for a total of .6 billion in payments.
The list of abuses include foreclosing on borrowers when they were in the process of modifying their mortgages; repossessing homes of borrowers who were supposed to be protected by bankruptcy law; and foreclosing on active duty service members, among other things.
Our long national foreclosure nightmare may be over.
The number of new foreclosure filings in August hit its lowest level in nearly eight years, according to RealtyTrac, an online marketer of foreclosed properties.
Soaring home prices and a big decline in underwater borrowers -- those who owe more on their mortgage loans than their homes are worth -- have helped drive the trend.
August's initial foreclosure filings fell 44% to 55,575, just below the 56,063 that were recorded in October 2005. The foreclosure crunch began in summer 2006, at about the same time that housing prices hit their peak.
Lloyd Segal Foreclosure
Silicon Valley Dominates 2013 List Of America's Most Expensive ZIP Codes
In Atherton, Calif., 94027, the most expensive home on the market is listed for million. But perhaps the best gauge of this Silicon Valley enclave’s exclusivity is the price of a starter home. The cheapest house for sale in Atherton, a 1,194-square-foot, two-bedroom bungalow on a 6,000-square-foot lot, has a .2 million price tag.
The median price of the 50 single-family homes that were listed for sale over the summer in Atherton 94027 is .67 million, making it the most expensive ZIP code in America.
“Atherton is by far the closest, most centrally located of all the super high-end communities in Silicon Valley,” says Ken Deleon, a broker in Silicon Valley whose eponymous realty firm has closed 5 million in sales in the first three quarters of 2013. “Of all the high-end luxury cities [in the Valley] it is doing the best.”
Cash-flush foreign buyers from China and India have been moving in, joining the wealthy Americans who live there. Six FORBES 400 billionaires reside in Atherton, including Google Chairman Eric Schmidt, discount brokerage tycoon Charles Schwab, and HP chief Meg Whitman. “Just two days ago I was showing a million home in Atherton to a local tech CEO of a publicly traded company,” adds Deleon.
The top 10 of our list of Most Expensive ZIP Codes is dominated this year by California’s Bay Area. Atherton is followed in second place by Los Altos Hills, 94022 (not to be confused with neighboring Los Altos); Belvedere, 94920, at No. 4; and Portola Valley, 94028, at No. 9. Another seven Bay Area ZIPs round out the top 50, including Hillsborough’s 94010 (No. 13), Woodside’s 94062 (No. 22) and Palo Alto’s 94301 (No. 38). For more information about Lloyd Segal visit http://www.lloyd-segal.net
96,000 borrowers shortchanged in mortgage settlement
Checks meant to compensate mortgage borrowers who fell victim to foreclosure abuses have finally started arriving in mailboxes -- but many of the checks have come up short.
Due to a processing error, 96,000 borrowers received checks for less than what they were owed under a settlement reached between the government and 13 mortgage servicers, the Federal Reserve said.
Under the terms of the settlement, 4.2 million borrowers who went through foreclosure proceedings during 2009 and 2010 are eligible for checks of between 0 and 5,000, for a total of .6 billion in payments.
The list of abuses include foreclosing on borrowers when they were in the process of modifying their mortgages; repossessing homes of borrowers who were supposed to be protected by bankruptcy law; and foreclosing on active duty service members, among other things.
Thursday, July 10, 2014
Lloyd Segal Real Estate - Is U.S. Housing Unaffordable? It Depends on How You Chart It
Rising home prices and interest rates made housing
less affordable last year than at any time in the last five years,
according to data released Tuesday by the National Association of
Realtors.
So is it time to sound the siren over a housing bubble? Not really. Nationally, the Realtors’ housing affordability index shows that, excluding the last five years, homes for the U.S. as a whole are still more affordable than at any time since at least 1981.
Two charts help explain what’s going on here. Bubble fears are being fanned by this chart comparing median home prices to household incomes. Robert Albertson, chief strategist at Sandler O’Neill + Partners LP, produced a report last November titled “Another Housing Bubble” that featured the price-to-income chart prominently.
Before the housing bubble, median prices stood just under three times household incomes. During the housing bubble, they reached nearly four times incomes. After falling during the bust, prices have since rebounded, and they currently stand slightly above their long-run, prebubble average.
“Without a meaningful recovery in jobs and incomes, higher home prices now will, at best, temporarily reduce negative equity in existing mortgages at the expense of new homebuyers,” Mr. Albertson wrote in his report.
Looking at the relationship between mortgage rates, prices, and incomes produces a slightly different picture. Because financing costs have been so low thanks to the Federal Reserve’s stimulus campaign, the monthly mortgage payment as a share of median incomes remains unusually low. On a payment-to-income basis, then, home prices still look undervalued.
John Burns, a homebuilding consultant in Irvine, Calif., called into question the price-to-income chart in December in a report titled, “A picture: more misleading than a thousand words?” To conclude that home prices are overvalued, he wrote, “you would have to conclude that mortgage rates don’t matter.” He pointed to the payment-to-income chart as a better barometer of near-term housing affordability.
Both Messrs. Burns and Albertson share the same underlying concern: that low rates could ultimately boost prices to levels that would be unsustainable once mortgage rates rise above 6%.
Lloyd Segal News - wsj.com
So is it time to sound the siren over a housing bubble? Not really. Nationally, the Realtors’ housing affordability index shows that, excluding the last five years, homes for the U.S. as a whole are still more affordable than at any time since at least 1981.
Two charts help explain what’s going on here. Bubble fears are being fanned by this chart comparing median home prices to household incomes. Robert Albertson, chief strategist at Sandler O’Neill + Partners LP, produced a report last November titled “Another Housing Bubble” that featured the price-to-income chart prominently.
Before the housing bubble, median prices stood just under three times household incomes. During the housing bubble, they reached nearly four times incomes. After falling during the bust, prices have since rebounded, and they currently stand slightly above their long-run, prebubble average.
“Without a meaningful recovery in jobs and incomes, higher home prices now will, at best, temporarily reduce negative equity in existing mortgages at the expense of new homebuyers,” Mr. Albertson wrote in his report.
Looking at the relationship between mortgage rates, prices, and incomes produces a slightly different picture. Because financing costs have been so low thanks to the Federal Reserve’s stimulus campaign, the monthly mortgage payment as a share of median incomes remains unusually low. On a payment-to-income basis, then, home prices still look undervalued.
John Burns, a homebuilding consultant in Irvine, Calif., called into question the price-to-income chart in December in a report titled, “A picture: more misleading than a thousand words?” To conclude that home prices are overvalued, he wrote, “you would have to conclude that mortgage rates don’t matter.” He pointed to the payment-to-income chart as a better barometer of near-term housing affordability.
Both Messrs. Burns and Albertson share the same underlying concern: that low rates could ultimately boost prices to levels that would be unsustainable once mortgage rates rise above 6%.
Lloyd Segal News - wsj.com
Saturday, July 5, 2014
How To Unload a Timeshare
How to unload a timeshare
Is there a legitimate way to sell a timeshare? Read in June issue of Money Magazine about a guy in Ohio who sold his at a loss and wanted to claim a capital loss. I'd like to just get rid of mine, regardless of a loss. --Mike, Fort Myers, Fla.
Timeshares give owners joint ownership in vacation properties, often in tropical hotspots like Hawaii or Florida. But on top of purchase costs, the properties typically come with annual maintenance fees and other costs that can add up to thousands of dollars a year.
Whether the resort wasn't the vacation paradise they intended or they simply couldn't afford it anymore, many timeshare owners have struggled to unload properties they purchased during better financial times.
This has created fertile ground for scam artists, who charge thousands in upfront fees to help sell timeshare properties, but rarely facilitate actual sales, the Federal Trade Commission warns.
But you can unload a timeshare without getting stuck in a scam. Just be prepared to lose money on the sale, since resale prices are usually much lower.
Lloyd Segal
Is there a legitimate way to sell a timeshare? Read in June issue of Money Magazine about a guy in Ohio who sold his at a loss and wanted to claim a capital loss. I'd like to just get rid of mine, regardless of a loss. --Mike, Fort Myers, Fla.
Timeshares give owners joint ownership in vacation properties, often in tropical hotspots like Hawaii or Florida. But on top of purchase costs, the properties typically come with annual maintenance fees and other costs that can add up to thousands of dollars a year.
Whether the resort wasn't the vacation paradise they intended or they simply couldn't afford it anymore, many timeshare owners have struggled to unload properties they purchased during better financial times.
This has created fertile ground for scam artists, who charge thousands in upfront fees to help sell timeshare properties, but rarely facilitate actual sales, the Federal Trade Commission warns.
But you can unload a timeshare without getting stuck in a scam. Just be prepared to lose money on the sale, since resale prices are usually much lower.
Lloyd Segal
Home Prices Are On The Rise!
The majority of Americans now are forecasting home prices to rise, and
only about a third are expecting prices to fall, a reversal in attitudes
of a year ago.
A monthly survey by mortgage finance firm Fannie Mae found 51% of those questioned in April believe prices will rise in the next 12 months, while only 35% are projecting a drop in prices. It is the first time in the three-year history of the survey that a majority said they expect prices to increase.
A year ago, 49% were expecting further price declines while only 32% said they though prices were on their way up.
The latest data from the housing market back up the this new level of confidence in the housing recovery. The S&P Case-Shiller Home Price Index rose 9.3% over the last 12 months, the biggest annual rise in home prices since the height of the housing bubble in 2006. For more information about Lloyd Segal visit http://www.lloyd-segal.net
McMansions are making a comeback
As the economy recovers, America's love affair with the oversized McMansion has been reignited.
During the past three years, the average size of new homes has grown significantly, according to a Census Bureau report released Monday. In 2014, the median home in the U.S. hit an all-time record of 2,306 square feet, up 8% from 2009.
During the recession, Americans downsized and the average new home shrunk in size by 6% over two years to 2,135 square feet. At the time, many industry experts said the days of the McMansion were over.
The shrinkage was supposed to indicate that a new era had begun, with young buyers seeking to live closer to urban cores and settling for smaller places and baby boomers downsizing after their kids had flown the nest.
But it wasn't that consumers wanted less space, many just couldn't afford more, said Jeffry Roos, a regional president for home builder Lennar. And now that the economy is improving, they're demanding bigger homes again, he said.
Related: Best deals on real estate
In 2014, the National Association of Home Builders conducted a survey of homebuyer preferences and found that people preferred a median home size of 2,226 square feet, just shy of the Census Bureau's recently reported median size.
And the homes seem to be getting even bigger this year, according to builders. Marcie DePlaza, a division president for GL Homes, said so far this year her company is selling homes that average about 7% larger than during the first five months of 2014.
Rose Quint, an assistant vice president for survey research with NAHB, said the trend toward larger homes might be less pronounced if mortgages were easier to get for low- and middle-income borrowers. With tough underwriting standards in place, the buyers who land mortgages tend to be more affluent and able to afford bigger houses.
Lloyd Segal
A monthly survey by mortgage finance firm Fannie Mae found 51% of those questioned in April believe prices will rise in the next 12 months, while only 35% are projecting a drop in prices. It is the first time in the three-year history of the survey that a majority said they expect prices to increase.
A year ago, 49% were expecting further price declines while only 32% said they though prices were on their way up.
The latest data from the housing market back up the this new level of confidence in the housing recovery. The S&P Case-Shiller Home Price Index rose 9.3% over the last 12 months, the biggest annual rise in home prices since the height of the housing bubble in 2006. For more information about Lloyd Segal visit http://www.lloyd-segal.net
McMansions are making a comeback
As the economy recovers, America's love affair with the oversized McMansion has been reignited.
During the past three years, the average size of new homes has grown significantly, according to a Census Bureau report released Monday. In 2014, the median home in the U.S. hit an all-time record of 2,306 square feet, up 8% from 2009.
During the recession, Americans downsized and the average new home shrunk in size by 6% over two years to 2,135 square feet. At the time, many industry experts said the days of the McMansion were over.
The shrinkage was supposed to indicate that a new era had begun, with young buyers seeking to live closer to urban cores and settling for smaller places and baby boomers downsizing after their kids had flown the nest.
But it wasn't that consumers wanted less space, many just couldn't afford more, said Jeffry Roos, a regional president for home builder Lennar. And now that the economy is improving, they're demanding bigger homes again, he said.
Related: Best deals on real estate
In 2014, the National Association of Home Builders conducted a survey of homebuyer preferences and found that people preferred a median home size of 2,226 square feet, just shy of the Census Bureau's recently reported median size.
And the homes seem to be getting even bigger this year, according to builders. Marcie DePlaza, a division president for GL Homes, said so far this year her company is selling homes that average about 7% larger than during the first five months of 2014.
Rose Quint, an assistant vice president for survey research with NAHB, said the trend toward larger homes might be less pronounced if mortgages were easier to get for low- and middle-income borrowers. With tough underwriting standards in place, the buyers who land mortgages tend to be more affluent and able to afford bigger houses.
Lloyd Segal
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