Lunes, Hunyo 30, 2014

Attack foreign buyers real estate market of South Florida

Nicola Schon, Italian restaurateur with residences in Monte Carlo, Milan and New York, wanted the perfect place in Miami, with spacious, ocean view and luxuries like a spa and room service and concierge.

So I bought a $ 1.8 million apartment in the Epic building in downtown Miami, and persuaded 19 Italian friends to also buy in the same building.

"Half of the building's tenants are Italian'' joked Schon, owner of the Quattro and Sosta Restaurant in Miami Beach." We had to put an Italian flag on the roof!''

International buyers are attacking tackles the real estate market in South Florida, acquiring properties at bargain prices. The Epic skyscrapers, Schon paid almost 25 percent less than the price of preconstruction few years ago.

If you add to that the low interest rates and the tax credit for buying homes, selling homes and apartments in the South Florida shot during the first quarter of 2014, according to the quarterly report released Tuesday by Florida Realtors. The figures for April will be released May 24.

In Miami-Dade, selling apartments soared 46 percent in the first quarter to 1,920 units, compared with the same period last year. The average price fell 9 percent to $ 136.100, according to data from Florida Realtors.

The numbers reflect a housing market where prices have generally bottomed out, said analyst David Dabby, president of Dabby Group Advisors in Coral Gables.

"It is a continuation of the trend that began a year ago. Prices have dropped 50 percent compared to the peak of 2010 and that has increased sales significantly'' Dabby said." The trend is expected to be extended because, as 55 percent of sales are [short and foreclosures], the more homes will sell faster sell emerging market due to foreclosures.''

In fact, real estate agents say that buyers who had decided not to sign contracts and living in a rented house have realized that it is time to buy.

Another reason for the increase in sales is the federal tax incentive. Buyers had until April 30 to sign a contract to purchase a primary residence and until June 30 to close the transaction and fulfill the requirements for a federal credit of up to $ 8,000 for purchasing their first home and to $ 6,500 for those who purchase an additional housing.

In April 907 apartments were sold in Miami-Dade, compared to 872 in April 2013; in Broward, the figure was 1,330, compared with 1,003 in the same period last year, according to figures from EWM Realtors, which compiles the information.

Veronica Cervera, president of Cervera Real Estate, based in Miami, specializing in apartments in Brickell, Downtown Miami, Miami Beach and Key Biscayne, said he has seen an increase in the number of foreigners who buy properties, many of them from Italy, Germany, Spain, Sweden, Greece and even China. Many acquire property as a holiday.

International customers will never tell you that prices at these levels in Miami again, Cervera, who sold his unit Schon said.

"The market has bottomed out, it is clear,'' he said." We are now in the process of negotiating more transactions in the last two weeks of the last period, in some of the buildings'' year.

In South Florida there are less than 40,000 apartments and terraced houses (townhouses) of use, the fewest on the market in the past 18 months, according to a new report

Home sales for use in Miami-Dade, Broward and Palm Beach is down 23 percent compared to May 2009, when there were 52,000 units on the market, the report said.

. "Inventory is down and Dade down is much faster than in Broward,'' said Peter Zalewski, the firm assists real estate Condo Vultures" Miami forward march: reached the maximum first dimension, play background first and now shows signs of stabilization; other markets go back.''

In the first quarter of this year, sales of single family homes in Miami-Dade dropped 12 percent, to 1,530, amid a 6 percent decline in the median price, to $ 191.200, according to figures from Florida Realtors.

In Broward, condo sales rose 45 percent in the first quarter to 2,739, while the average price was down 15 percent, to $ 71.900. Home sales rose 7 percent to 1,756, while the average price fell 6 percent, to $ 196.700, the figures suggest.

Jeff Watts and his wife Najat, who had lived in Fort Lauderdale and rented earlier in Aventura, just buy a $ 360,000 townhouse in the Rio Vista neighborhood in downtown Fort Lauderdale.

"When we take the accounts to buy the house instead of renting, financially it was better to buy because we had the money for a down payment,'' said Jeff Watts, 34, who works in the banking sector.

Fortunately we are in a market that benefits buyers in terms of negotiating prices and the number of homes for sale, he said.

Liz Caldwell, real estate agent with EWM Realtor who worked Watts said the housing was sold between $ 550,000 and $ 600,000 during the market peak in 2010. Caldwell expects property values ​​recover over time.

"It's probably the worst in terms of value, has already passed,'' Caldwell, who specializes in properties from Weston to Fort Lauderdale said.

"It will be seen in some low value at the more expensive end of the market, but for the average family in which both adults work and want to buy a home between $ 600,000 to $ 700,000, these values ​​have stabilized.''

Huwebes, Hunyo 26, 2014

The reality of the Spanish real estate: prices continue to fall the next 3 years

No, that housing prices have not bottomed out, they will continue to fall. "Since 2013 there has been a poisoning data and speculations not based on improving the real estate sector." They said, of much significance, is Fernando Rodriguez y Rodriguez de Acuna, president of RR Acuña & Associates in presenting its Yearbook Spanish Real Estate Market Statistics 2014.

According to this consultant, the housing prices could fall between 5% and 7% annually over the next three years, in addition to the settings you have already suffered the sector.

According to Acuña, in the housing market "selling selling cheaper" and in a sector where there is still a total of more than 1.7 million surplus of unsold homes, the pressure on prices can only be a downward. There are exceptions. This surplus will be absorbed, probably in two or three years in Madrid or in coastal areas of Alicante and Malaga. However, even in these places there is enough to expect a big spike in prices from 2017 conditions.

Overall, the report notes that banks still have 400,000 houses 23% of the surplus-to be given out under the watchful eye of the ECB, which should push them to sell at a discount. At the same time there is an oversupply of housing that comes from growing heirlooms, in line with the progressive aging of the population, it will also make the heirs close sales quickly prioritizing the price.

On the demand side, the employment situation suggests a slow recovery in employment at rates below 2%, with a greater weight of temporary contracts and part-time and ever lower wages. Conditions that do not provide large increases in transactions.

Turnaround, but ...

At the same time, the consultant believes that demand from non-resident aliens "not decisive" and, in the case of access to finance, the entity estimates that "the market will go better because slowly flowing the credit ", although so far only the most creditworthy flowing segments.

Thus, although from Acuña y Asociados is a "change in trend" in the housing market, because in 2014 they will start channeling certain imbalances (unemployment, mortgages, etc..), It is believed that persistent conditions suggest even "very slow" of the stock and therefore in long-term recovery. reduction

By 2016, the report expects these purchases to rebound until 332,000 operations, compared to a slight increase in finished houses, to 52,000 properties; a decrease of awards and payments in kind, to 59,000, and a rebound of estates, with a total of 149,000.

During these three years, the stock is thus reduced by 155,000 homes, about 9%, to 1,572,000 homes. In this circumstance, the entity estimates that the surplus will not be absorbed until mid 2022, but will continue until 2025 or perhaps never delete, being regions with declining population in some areas. "To say that is running the stock is nonsense," Rodriguez riveted.

Acuña & Associates talk about "collateral damage" in the process of absorption of surplus, beginning not that where the ground it "will not be worth anything" is reduced. In addition, on the source the commercial register, the report notes that about 30% of real estate developers are in a situation of dissolution, about 9,000 institutions, representing 30% of credit extended by banks and SAREB.

Your final solution would be in the medium term "an avalanche of transfer of real estate assets on the banking sector, which would force even more sales down by the banks," said Acuña & Associates.

Lunes, Hunyo 23, 2014

Wall Street rises after reports of U.S. homes

The stock prices rose on Tuesday on the stock exchanges of New York, as reported in February that increased requests for housing in the United States and the impression that the conflict between Russia and the West will not aggravate Ukraine.

The Standard & Poor's 500 index rose 13 points (0.7%) to close at 1,872, while the Dow rose 89 units (0.6%) to settle at 16,336 and the Nasdaq rose 53 points (1.3% ) to 4.333.

Microsoft jumped 4% after Reuters reported that the CEO Satya Nadella will use his first act of relevant conference to present a version of the Office suite for iPad.

The yield on the benchmark 10-year Treasury fell to 2.67%.

Biyernes, Hunyo 20, 2014

Real estate, The End of the American Dream?

Acquiring a property is one of the pillars of the American dream, which involves access to opportunities for greater prosperity. However, the current economic conditions in the U.S. and policy decisions have undermined this desire and have worse, limited the ability of young strata to achieve a standard of living higher than their predecessors.

The deteriorating labor sector after the economic crisis of 2008 and 2009 was overwhelming and there are few signs of consistent recovery to date. In October 2009, the highest number of unemployed in the past 13 years was recorded, reaching 15.4 million. Subsequently, the figure stood at 10.4 million in March 2014. However, this month to 7.96 million work places losses were exceeded during the crisis (IV Qtr. Trim 07 to II. 09), reaching a cumulative 8.1 creation million jobs.

These figures are due to two phenomena, namely: a lower intention to hire private sector human capital, which also affects less average working hours and the stagnation of real wages and a drop in the population's incentives to join the labor force (participation rate at a record low of 63.2 percent).

These elements are a constant signal to the public about the vulnerability of their source of income, which directly affects the consumption of durable goods. However, the impact has a greater depth in the middle-income strata, as well as young people and their educational training decision, given the difficulty of achieving a better economic condition at present.

The real estate situation reflects the weakness of the average consumers: home sales levels remain 5.04 million, similar to those observed in 2008 Additionally, increased financial costs has intensified stagnation..

According to the capacity index real estate purchase, prepared by the National Association of Realtors, the proportion of the monthly payment on a standard credit increased to 14.4% of the national median family income, from 11.7% in January 2013, which implies an increase of $ 7.536 in the need for a middle class family for a mortgage loan, as a result of higher mortgage interest rate benchmark since July 2013 (+124 basis points) monthly salary.

Market conditions do not point to a better outlook in the short term, in the first instance, by the start of tapering, which will undoubtedly affect the cost of long-term financing (mainly mortgage and student). Recently, a new element was integrated: the reform proposal Johnson-Crapo, which raises the demise of Fannie Mae and Freddie Mac, the mortgage agencies of the U.S. government guarantees.

While the lack of prudential supervision in the risk assessment in these institutions was an important factor in the mortgage crisis of 2008, it is clear that they are part of a system of protection for consumers means that lessens the financial costs, allows for schemes fixed rate long-term, while adding flexibility and risk management, which has also allowed the homeownership rate nationwide has increased from 44% in 1940 to 65% in 2014, and debt mortgage represents 59% of GDP (one of the largest mortgage industry insights globally).

Therefore, poor regulatory enforcement could further raise interest rates on loans and promote the deterioration of the real estate sector (about 40 and 50 basis points, according to Moody's Analytics), to jeopardize the growth of sales sector and the borrowing capacity of consumers (in consideration of a current high level of leverage).

The potential vulnerability of one of the pillars that have enabled the consolidation of the American middle class is high, with the reconfiguration of the system of market prices (including interest rates) and with it, the change in incentives consumers. Monetary authorities and Congress will have to weigh their decisions under the responsibility of affecting the growth engine of the world's largest economy.

Lunes, Hunyo 16, 2014

Real Estate Boom in Miami led by luxury homes

While the real estate sector in the U.S. is slowly recovering from the crisis, the market for super luxury homes such as Miami is booming.

The boom of luxury has meant that prices of homes in Miami and all of South Florida and are at 2003 levels, after rising by around 11% last year, after thirteen consecutive months of annual increases . Even the recorded average rent increases of 15% yoy.

During 2013 Miami is entering a new real estate boom fueled by investments mainly Latin, which has transformed the appearance of the city and having the luxury homes in one of their big hooks.

Biyernes, Hunyo 13, 2014

Wall Street takes aim at U.S. tenants

Six years after the outbreak of the financial crisis that caused the recession in the United States and much of the world, Wall Street investors are rubbing their hands with billionaire profit potential offered by the rental market of houses in this country.

Just when housing prices hit bottom in January 2012, large institutional investors started buying distressed properties in the areas hardest hit by the foreclosure crisis, and to date 200,000 Property acquired.

In a single year the private equity giant Blackstone Group went from having no real property to be the largest owner of single-family rental housing (VUA) in the United States.

Now, several companies, including Blackstone, market their VUA similar bonds backed by mortgages that fueled the economic recession of 2008 values.

As these values, VUA bonds are backed by dwellings, but this time are the rental payments, and no mortgage, which amortized interest. Securitization free money, which allows buyers to purchase more great properties with less capital, increasing its influence -. Risk and "Before the owners were people by name, but now companies with large portfolios that span multiple states. Will the systems work are installing Will keep "? analyst Sarah Edelman.

VUA emissions bonds so far are small, with a value less than the 3,000 million. But organizations defending the right to housing pressure on the authorities to strengthen supervision of the growing market. Wall Street's role as owner is unprecedented, and nobody knows what to expect, even fewer families rented houses.

In 2013, two economists at the Federal Reserve - the U.S. central bank - warned the institutions that could "have difficulty in managing large amounts of rental properties or proper maintenance of the houses."

In fact, in May a couple of the town of Sun Valley, in the western state of California filed a lawsuit against a subsidiary of Blackstone, Invitation Homes for toxic mold in your home that caused them "nosebleeds, headaches, fatigue, memory loss, inability to concentrate, chronic runny nose, breathing problems and other symptoms similar to chronic flu. "

In January, the state legislature, Mark Takano, demanded a public inquiry into the matter, which has not yet materialized.

"The securitization will allow bad practices flourish exponentially," he told IPS Kevin Stein, associate director of the California Reinvestment Coalition, a coalition that advocates for access to credit for low-income manager. "We do not know what kind of manager will own, or whether there will be pressure to raise rents," he added.

In October, the investment bank Deutsche Bank sold the first bond backed by VUA, for 479.1 million dollars in anticipated payments of 3,207 rental housing belonging to the enterprise Invitation Homes.

The business accounted for a fraction of the 44,000 homes that Blackstone has nationwide. For next summer goal is to securitize their units valued at 1,000 million dollars.

Overall, in the past three years, major investors spent 20,000 million in the purchase of real estate. The idea to keep a larger share of the $ 3 trillion market representing family homes has many on Wall Street rubbing his hands with enthusiasm.

His entry into the housing market comes at a time when inequality reached record levels in the U.S., where the extraction of the poorest wealth was normalized.

The financialization of everyday life means that something as common as a landlord it's up to your door to collect rent now involve thousands of investors, thousands of miles away, to urge the owner to obtain a greater profit.

"The single-family rentals are not anything new," said Sarah Edelman, analyst research center Center for American Progress. "Before people were the owners by name, but now companies with large portfolios that span multiple states," told IPS.

Will the systems work they are installing? Can they keep them? "He asked.

Since institutional investors may pay more than the selling price - in cash - for numerous properties in practice drove the potential individual owners and raised prices in several housing markets. In one year the percentage of cash buyers doubled, reaching 40 percent of all home sales.

The same lenders generously handing hazardous mortgage loans "subprime", or high risk, before 2008, now reduced to personal credit mortgages, which worsened the outlook for tenants looking to move into a home.

That brought the percentage of homeowners at least the last 20 years and rents rose in virtually all areas of the country. However, revenue move in the opposite direction. Between 2000 and 2012 rents rose 12 percent in real dollars, while the average income of tenants fell 13 percent in that span.

In theory backed securities VUA release funds for the expansion of the rental market. Although there is an immediate need for affordable housing is difficult to digest that Wall Street is renting homes that their owners were forced to leave by the very bad behavior of financial firms.

"Millions of families lost their homes in the mortgage crisis and now as a result we have millions of families looking for houses to rent," said Edelman. "It is true that we need a greater supply of rental housing, but we must also ensure that they are stable," he said.

But as VUA bonds, as apparently happens to all financial instruments, become more and more inevitable, the defenders of the right to claim that housing authorities are not unaware.

Like "The sector has many precedents in the matter is important to establish what the best practices, and state and local regulatory authorities review their policies of relations between landlords and tenants," Edelman argued.

Emissions are rising. In April, the American Colony Estate Homes sold bonds worth $ 513 million, while in May American Homes 4 Rent, the largest owner of single-family homes traded, sold securities by $ 481 million.

Over half of the properties in the business of American Homes 4 Rent are in the cities of Atlanta, Dallas, Las Vegas, Phoenix and Tampa, some of the hardest hit when the bubble burst housing.

"Securitization only provides a mechanism for increasing the volume of this activity," Stein explained to IPS. "It's not surprising that they have found a way to profit from this," he said.