Now, You Don’t Have To Be So Rich
A report from the New Hampshire Business Review. “John Rice, president of the New Hampshire Association of Realtors, said things are really picking up on the Seacoast, where a ‘popularly priced’ home sells for between $200,000 and $400,000. If it is good shape and in a good location, it is going to get multiple offers, he said. ‘Today’s buyers have confidence in the market,’ Rice said. ‘I can’t say everything is over, but it’s nice not to worry about when the next paycheck is coming and that Realtors can actually make a living doing this.’”
The Record in New Jersey. “With typical prices below $400,000, and mortgage rates south of 4 percent, homes in Bergen County in 2011 reached their most affordable levels in years — just about at the point where a majority of households can afford the typically priced home, an analysis by The Record has found. ‘There was a point a few years ago where you had to be pretty rich to afford a house in this area. Now, you don’t have to be so rich,’ said David Blitzer, a housing economist at Standard & Poor’s.”
“‘If interest rates were any higher, there’s no way we would have been able to buy our house,’ said Joshua Baris, a Coldwell Banker real-estate agent who bought a three-bedroom Dutch colonial in Tenafly last year. He and his wife locked in a rate just below 4 percent and a price — $660,000 — that was down dramatically from the earlier asking price above $800,000.”
“For its analysis, The Record adopted the federal government’s benchmark for affordability, assuming that housing payments (including mortgage, property taxes and insurance) total no more than 31 percent of a household’s gross income. It assumed a mortgage interest rate of 4 percent and 2011 median home prices: $392,000 in Bergen County and $288,000 in Passaic County, as well as incomes averaging $87,400 in Bergen County and $59,600 in Passaic.”
“The analysis also assumed a 20 percent down payment, a longtime benchmark — though, admittedly, one that is difficult for many households to achieve.”
“Peg and Don Cordes spent $30,000 to upgrade their Mahwah, N.J., condo before putting it up for sale. Just weeks after the condo hit the market, they accepted an offer of $375,000. But then the appraiser for the buyer’s mortgage lender valued the place at $365,000, which, said Peg Cordes, didn’t take into account all the improvements.”
“As the Cordeses discovered, even when a buyer and seller agree on a price, appraisers often take a more skeptical look at values, especially since the housing bust left many lenders stuck with mortgages larger than the value of the homes they cover. Eager to move to Florida, the couple reluctantly cut their price. ‘When your back’s against the wall, you have no choice,’ said Peg Cordes.”
The Journal News in New York. “With local real estate prices at decade-long lows, agents have been scrambling around the Lower Hudson Valley to close a stunning amount of deals. ‘I’m probably having the busiest quarter that I’ve ever had in my 10-plus years in real estate,’ said Michael Graessle, a Realtor in White Plains and former president of the Westchester Putnam Association of Realtors. ‘I’ve never, never been this busy. I’m mystified by it.’”
“Attributing much of the increase in buying activity to the record-low interest rates, Graessle said these price increases could spill into the suburbs as homebuyers get priced out of the city. However, that movement could take awhile to develop because so many homes are on the market in the Lower Hudson Valley.”
“Data for the second quarter are expected to show more sales but similar low prices, Graessle said. One of his clients, Dr. Joan Priestley, took over her mother’s home in White Plains after she died in 2010 and put a lot of work into it to get it ready for sale, she said. Since January, though, she had to come down in price almost 20 percent to make it attractive for buyers. The three-bedroom colonial built in 1955 is currently listed at $449,900, and only now is it generating interest from potential buyers, Graessle said.”
“Priestley said her mom’s estate might have been worth as much as $700,000 around 2006 when the real estate bubble was at its peak.”
The New York Daily News. “Fast sales aren’t everything. Slow and steady wins the real estate race, too. Selling since summer 2010, just 10 of 62 apartments are left at the Santorini, a new mid-block condominium in Astoria that rises above the two-story brick homes around it. Starting in the low $300,000 range for 460-square-foot studios, some apartments sold right away.”
“In recent months, prices have increased. Studios start at $339,000, with an 875-square-foot, one-bedroom penthouse on the market for $595,000. The larger 1,573-square-foot, three-bedroom apartments are available for $799,000, with 1,115-square-feet two-bedrooms listed at $654,000. Santorini is FHA and Fannie Mae approved, so first-time homebuyers can put as little as 3.5% down.”
“Harold Valestin, VP of the real estate company in charge of marketing and selling the building reports that nearly 10 apartments have already appraised at higher figures than their purchase price. ‘There’s a reason Astoria keeps going up in price,’ says Valestin. ‘Yes, it’s close to Manhattan, but there is so much here. Culture, bars, parks, museums, all kinds of foods and a wealth of diverse people. This will always be a great New York City neighborhood, but the chance to live here at this price won’t last.’”
From WPRI in Rhode Island. “Home prices are steadily rising in the Ocean State. Prices are up in 19 out of 20 major cities, and Rhode Island looks to be moving in the right direction. ‘Year over year we didn’t rise, but we certainly didn’t fall short of transactions closed, so in actuality we’re doing fairly well,’ said Karl Martone of RE/MAX Properties. ‘Rome wasn’t built in a day, as they say.’”
“According to Martone, 25 percent of Rhode Island’s market was foreclosure-driven this year, down 2 percent from the previous year. He describes our current housing market as ‘peppy,’ and said that sellers must be firm and price right if they want to be successful.”
The Boston Herald in Massachusetts. “The developer of Millennium Place is giving passers-by a tool to envision how the luxury condo high-rise will take shape in downtown Boston. New York-based Millennium Partners will set up a sign at the lower Washington Street site tomorrow that displays a QR Code that people can scan with their smartphones and connect to a 3-D digital simulation of the 15-story building’s construction.”
“The tower will have 256 units — one-, two-, and three-bedroom units along with 14 penthouses with private terraces. Asking prices range from $550,000 to $2 million. ‘Whenever we begin a new project, we like to start by listening closely to sophisticated residents in Boston and other great American cities about how they want to live, work and partake in all that the city has to offer,’ said Joe Larkin of Millennium Partners, in a statement.”
From WWLP in Massachusetts.”The Warren Group says May foreclosures doubled in Massachusetts compared to May of last year. In Springfield, banks are at odds with the city over whether two new ordinances are the solution. The anti-foreclosure group No One Leaves protested in front of the U.S. District Court, where a federal judge is deciding if the city’s new foreclosure ordinance is legal.”
“The first ordinance requires banks secure any abandoned properties which are in the process of being foreclosed on. Banks must give the city a $100,000 bond that they hold to make sure the property is boarded up and maintained. The second ordinance requires banks mediate with mortgage holders before foreclosing on any property.”
“The Massachusetts Bankers Association claims the ordinances conflict with state laws and may even violate the constitution. The judge didn’t rule on the case Wednesday, he is expected to make a decision soon. It’s a move those in real estate are anxiously awaiting because preventing foreclosures is always good for home values, but the city’s ordinances and the legal issues surrounding them have caused some banks to hold back on lending.”
“Kevin Sears of Sears Real Estate in Springfield told 22News, ‘If banks aren’t lending because of ordinances in the city then that’s going to drive down the value of properties in the city because it’s going to be more difficult to get more financing the less attractive the properties become so it’s a Catch 22.’”
“Imogene Jones of Springfield faced foreclosure, she said, ‘Why not help the community out, why not help the people who have been here for years, I’ve been here since 1959 so help me and my children.’”
