Biyernes, Abril 4, 2014

Wall Street higher for housing construction in the U.S.

The share prices rise on Tuesday morning at the beginning of transactions on Wall Street, reported an increase in housing construction in the United States.

Shortly after the start of the day, the Dow Jones Index was up 40 units (0.3 to settle at 14,491, while the Standard & Poor's 500 grew 2 units (0.2%) to settle at 1,554.

Meanwhile, the Nasdaq grew 6 units (0.2%) to settle at 3,244.

Miyerkules, Abril 2, 2014

Mortgage applications in the U.S. rise by falling rates

Mortgage applications in the U.S. rose last week , driven by demand for refinancing due to a drop in interest rates to their lowest level of the year, data showed on Wednesday an industry group .

The Mortgage Bankers Association (MBA , for its acronym in English ) said its seasonally adjusted index of mortgage application activity , which includes both refinancing and demand for home purchases rose 7 % in the week ending 3 May .

The seasonally adjusted index of refinancing applications rose 8.3% MBA while measuring applications for loans to buy homes, an important indicator of home sales, rose 2.4 %.

The refinance share of mortgage activity in total amounted to 76 % of applications from 75% .

Mortgage rates 30-year fixed averaged 3.59% , down one basis point compared to the previous week and the lowest since late December 2012 .

The data covers 75 % of applications for retail residential mortgages in the United States, according to the MBA.

Martes, Abril 1, 2014

The real estate market boom of Miami

The strong recovery of the market in South Florida continues to get attention. In this comprehensive report written by Fernando Levy Hara market situation shows from the last crisis .

In my last article for Real Estate Report in June 2012 I noted that the deep recession that had shaken since 2008 the real estate market in South Florida seemed to be beginning to disappear .
The property prices have stopped falling and had begun to recover slowly ; rental prices had begun to rise and the number of vacant units to decline.
The stock of 42,000 completed units remaining unsold in 2008 had been absorbed gradually , and there were only 4,500 vacant units . He ended the article saying, " this is the time to re-enter this market , those who enter in the next 24 months will be buying in the beginning of the new virtuous cycle of real estate boom and may have excellent yields within 4-5 years when prices recover . "

Luckily , I was not wrong . Many thought it was too optimistic back in 2009 when I had to swear to my investors would make an excellent business investing in property in "distress " in South Florida.
In 2010 I had to defend my thesis in the Program in Real Estate Development from which I graduated from Harvard University, and some of the jurors, ( the most recognized professors and real estate advisors USA) told me , "Your numbers sound too optimistic, recovery will not reach the region until 2020. "
But I insisted that before 2013 , we would see construction cranes filling the skyline again Miami ... and luckily I was right. I found one of those teachers last month at Harvard, where now I teach classes , and just saw me he said, " I remembered a lot of you ... if you followed in business your theory , you should have made a lot of money these years , it is not right? " . It was a great pleasure to hear .

The recovery of the condo market in this area of ​​the country is , even for an optimist like me, without a doubt amazing .

Of the 42,000 condo units ( beyond what we call horizontal property ) if there are only 650 sold .
Empty units are at a historically low record : 1.4 % of all units are not rented or occupied by their current owners , compared with 4.5% on average across the country .
Only in the area of ​​the urban core of Miami ( Brickell -Downtown- Edgewater- Midtown, from the center of the city to the Bridge Street NE 33) there is a demand for 6542 new units each year due to the new trend of young professionals to live near the downtown area of the city avoiding commute an hour drive to work. This demand is not satisfied now : for 7 years, no new projects were started in the area, and currently there is less supply than demand .
For this reason, the rents rose rapidly : an extraordinary 10.6% in 2012 ( in a country with less than 2 % inflation ); estimated to rise 6% this year and 3.5% each the next four years . As we studied in economics , by rising rents, rising prices of the properties below , so that " the value of goods is directly proportional to the income they generate ."

The National Board of Realtors, one of the largest professional institutions in the country, has appointed Miami with " Number 1 in the market rate of recovery in 2012."

Because recovery was stronger than in other cities?

• On the one hand , Miami is one of the metropolitan areas of higher population growth. While cities like Detroit and other industrial cities in the Midwest are shrinking rapidly (up to 2 % annually over the past 13 years ), Miami has grown between 2% and 1.2% per year since the beginning of the millennium.
• Still paradise for foreigners like me, looking for a place with quality of life , good weather, and professional development opportunities not found elsewhere.
• In addition , the vast majority of these immigrants are young, between 25 and 45, who are in the middle stage of formation and growth of their families. South Florida was no longer 15 years ago the city of withdrawal of American retirees. The population is growing and with them, the need for more and better housing units.
• The demographic composition also contributes : currently 23.5 % of the units are occupied by one person , 27.5 % and 18.7 % for two for three . This creates greater demand for residential units at the beginning of the decade.
• In return for the past 7 years, only 200 new condominium units were built in the area, waiting for the surplus left by the crisis absorbed .
• Finally , we can not fail to mention the powerful effect of the thousands of foreigners who arrived after the crisis to invest their savings in this market , perceived as solid and stable, and where anyone can do business even if not resident , not pay higher taxes, and free to take your money the day you sell your property. The State of Florida is one of the U.S. states in which fewer taxes are paid because, unlike others such as New York or California, there is no provincial income tax . For the same investment in California is paid up to 53 % tax , here will pay 20 %.

Investors came this time around. Until the previous boom, most of the capital came from Latin America. In 2012 , for the first time , the group of biggest foreign buyers came from ... France. The French, eager to escape the onerous 75 % rate of income tax that President Hollande proposed as part of his campaign promise , put aside their traditional aversion to invest abroad , and bought 20 % of the units for sale in the area ... more than Canadians, Venezuelans, Brazilians and Argentines, traditional buyers of properties in this city.

Finally we should add that Miami is in train to become one of the most important cities in the country. Currently already one of the ten metropolitan areas with higher GDP : it is important to note that the GDP of South Florida, an area of ​​9 million and 90 kilometers long, is higher than any country in Latin America except Brazil and Mexico .

My prediction ?

The condo market in South Florida has given all the conditions to experience sustained development cycle for the next three or four years.
Think of Buenos Aires in 2003 to understand : after a severe crisis in that year the first developments began to appear , driven by the costs and low sales prices . Those who bought at the time to $ 1,100 per square meter thought they were paying expensive but resold three years later for $ 2500. Smart developers then bought huge lots to build 30-story towers at prices that now there is a small batch gets to make a 7-storey building .

Currently this same thing happening in Miami :

In January 2012 we purchased land on water, located in Edgewater , the new top area of Miami, an issue of $ 260 per m2. salable . Last month, the last two lots on the water with an incidence of 850 ! Sold ! The cycle is always the same : at the beginning of the recovery phase increases the price of land , then the construction costs , and this translates to sales prices of new units first and used later.
I do not think that prices increase 100 % as in the Buenos Aires market, because that would be a very exaggerated rise to mature as the South Florida market, but conservative think the price of condominiums increased by 20 % and 30% , following the sharp rise in rental prices .
As the investor can finance 50 % or 60 % of the investment with a bank loan , this allows you to " leverage " their investment , achieving yields of between 40 and 60 % the day you re sell the property, unimaginable gain until very shortly .

Lunes, Marso 31, 2014

Most expensive homes in Brooklyn

According to a study released this week by the realtor Douglas Elliman , the average rent for an apartment in Brooklyn arrived in July 3000 to U.S. $ 35, 8.2 % more than the same month last year.

This increase makes Brooklyn continue its approach to Manhattan, the most expensive neighborhood in the Big Apple , and where the average rent is $ 822 per month 3000 .

The improving economy , but also the permanent flow generated in the city 's financial sector , large corporations and diplomatic (UN and consulates ) is combined with limited space to push prices up .

The annual rise in Manhattan has been only 1.7 % through July, but at that level prices have taken a little break though, with only 1.28 % of empty homes on the island, apartment owners know that if a potential tenant rejects the price, then another will accept it.

" No apartments to teach. Everything is rented many customers who do not find anything " " Jiang Jinjin , a real estate agent Hecht Group, who added he has regrets . "

The increase in Brooklyn is even greater in the most demanding areas like Greenpoint , Williamsburg, Cobble Hill and Brooklyn Heights, after Park Slope and Carroll Gardens- feet very fashionable for several years - has long ceased to be accessible for the average citizen .

Jiang also drawn to Dumbo, a very trendy area of Brooklyn where some areas near the river are already more expensive than Manhattan, where a study can be rented for up to $ 3,000.

Brooklyn apartments considered luxury , which are those that are in the 10% more expensive, have an average rent of U.S. $ 6.007 , 8.8 % higher than a year ago , the study of Douglas Elliman .

People fleeing the island of Manhattan for the impossible free market prices can not be considered for subsidized public housing and is the origin of the meteoric rise of Brooklyn, but we must not dismiss the " fashion factor " , as this neighborhood is becoming in recent years the most dynamic area of ​​the city .

For example , rents in Park Slope rose 32 % between April 2011 and March 2012.

Sabado, Marso 29, 2014

In the U.S. home construction data was lower than expected

The beginning of construction of houses in the U.S. rose less than expected in August amid a sharp slowdown in the multifamily sector , according to data released Wednesday by the Commerce Department data.

However, a sharp rise in permits for single-family homes aimed at strengthening sustained recovery in the labor market.

The beginnings of home construction rose 0.9 % in August to a seasonally adjusted annual rate of 891,000 units. The early July were revised downward to show a rate of 883,000 units instead of the previously reported 896,000 .

The beginnings of multifamily dwellings fell 11.1 % to 263,000 units in August . The beginnings of single family homes, which are the largest segment of the market, rose 7.0 % to a rate of 628,000 units , the highest since February.

The drop in multifamily housing starts could be the result of a rise in mortgage rates , which could make developers are more cautious in undertaking new projects.

The largest mortgage rates have slowed the pace of home sales, but is expected to boost demand for new housing residential construction.

Mortgage rates have risen to expectations that the Federal Reserve reduced purchases of bonds 85,000 million hits monthly to keep rates low .

Economists believe the Fed will make an announcement on the future of the program after a meeting on Wednesday, two days.

Permits to build new homes fell 3.8 % in August, at a rate of 918,000 units. Analysts had expected permits, preceding the beginning of construction in at least a month , mostly not change at a rate of 950,000 units.

All the pressure came last month multifamily sector , where permits fell 15.7% . Permits for single-family home construction , meanwhile, rose 3 % , to its highest level since May 2008.

Overall, the early works in homes and apartments last August were 19% above the rate of August 2012.

Permits for buildings with at least five apartments fell 15.7 % , while permits for single-family homes rose 3 percent.

Huwebes, Marso 27, 2014

Miami Herald: Venezuelan underpin the property market in Miami

They had five years assessing whether to invest their savings outside of Venezuela , in Europe or in Florida. They were looking for an investment that will revalue over time, but above all, it is safe . 15 days ago signed the purchase of an apartment for about $ 300,000 in Miami Beach will also serve them as a holiday , and last week gave them the keys .

Buyers , Victoria, who does not want to be identified by his real name for fear of reprisals, and her husband, two young professionals are part of Venezuelans who have decided to invest in Miami and are a growing part of international buyers of residences in Miami.

Venezuelans have gone from being 16 percent of all buyers of properties in the areas of Miami and Miami Beach in the 12 months to June 2012, 20 percent in the 12 months leading up to July 2013 , according to a report prepared by the National Association of Realtors (NAR ) for the United States Association of Realtors Florida .

In addition , Venezuelans have moved from third to second place in the ranks of international buyers of properties in Florida , accounting for 7.6 percent of foreign purchases in the state. They are second only to Canadians ( who signed almost 30 percent of foreign property purchases in Florida ) and ahead of the Brazilians, who exceeded them in the report of 2012. The jump is due mainly to the percentage of property purchases among Brazilians fell from 9.3 to 6.5 percent.

The NAR report is based on a survey of 977 real estate agents in Florida.

"The number of Venezuelan buyers has definitely gone up. Venezuelans feel safer having their investments here , "said Aurace Rengifo , realtor in Ocean International Realty .

Security of investment was the main objective of Victoria and her husband to invest in Miami. They did not want to buy in Venezuela for fear that if they rent the property , the tenant has the right to buy it for a reduced or , if left empty, that the expropriation price.

" Perhaps you will be revalued in Venezuela 's percentage, because the supply is scarce. Here's more offer, but with all that the property is still revalued. It's a risk-benefit balance . One is more at risk in our countries but has more gain, " Victoria , who works in a multinational company said. Her husband has his own business in Venezuela .

Victoria and her husband are the prototype of the Venezuelan investor is buying in Miami , as described different estate agents : young professionals who often have their own business in Venezuela , which often have a partner or children and perhaps . Venezuelans who bought homes spent in Florida between July 2012 and July 2013 , mainly rent them for performance ( 38 percent of buyers as reported by NAR ) , as a holiday also would rent when I was busy (32 % ) and exclusively as a holiday ( 9%).

"Overall, the Venezuelan who invest now want to ensure that while not using the apartment can rent " confirmed Rengifo , who noted that some condo associations do not allow this practice.

"It's a mixture of the two uses , residential and investment," said Francisco Angulo , president-elect of residential property in the Realtors Association of Miami. "Many of these buyers will want to think of an alternative in case you have to come to the United States ," he added .

Although Victoria and her husband bought the apartment as an investment especially not think renting , but plan to spend their holidays there. They thought about investing in Spain , but there are still the crisis, while in the United States, property prices are already rising.

"In the U.S. , compared to every crisis, recover. They are prepared to recover, " Victoria said. He also bought in Miami Beach by weather and the beach.

62 percent of Venezuelans who bought a property in Florida , it was in the Miami and Miami Beach , according to the NAR report 2013. Next in popularity Fort Laudedale (9 % of buyers ) and the area of ​​Naples -Marco Island (6 %).

"Those who want to emigrate , are likely to residential places such as Weston, Doral and Kendall ," Angulo said. " Investors buy in Brickell, Downtown, Midtown, Doral and Aventura ." Other Miami Beach agents added to the list of preferred areas .

In addition to security for their investments , Venezuelan buyers also seek personal safety. "They like to buy buildings or communities with security, Doral, Weston, or condos with security at the door ," said Carlos Villanueva , regional manager Keyes Realtors. "The Venezuelan coming here mostly for the protection of their capital and personal protection ."

Also the price they paid for their apartment is about average . Nearly 60 percent of Venezuelans who bought some property in Florida paid between $ 100,000 and $ 400,000 , according to the report of the NRA . The price gives them to buy , especially apartments, condo buildings and townhouses . The majority - 78% - buy your apartment in cash, without resorting to a mortgage.

For Victoria, the decision to buy a condo was clear. "I wanted beach. I have other friends who bought in Kendall home and bought them because they wanted a house by the lake . For me the houses are unsafe , are more isolated . I like an apartment , you have a condo, maintenance costs are shared . And besides, if you're not going to live there , the houses will deteriorate further, " Victoria , having clear he wants to continue living in Venezuela said.

Miyerkules, Marso 26, 2014

Greater than expected drop in U.S. sales of new homes in February

Sales of new U.S. homes fell slightly more than expected in February, according to data released Tuesday by the Commerce Department.

The authorities recorded 440,000 transactions on an annualized basis and according to seasonally adjusted data, the lowest figure in five months. Analysts, meanwhile, expected a drop in sales to 445,000.

This number represents a decrease of 3.3% compared to January sales month that 455,000 transactions (revised down from 13,000 figure) were recorded.