Latest Reality News

Real Estate Market Continues Steady Recovery

2012-02-13T04:09:00.001-08:00

Estonia's crisis-battered real estate market maintained its steady path of recovery in 2011, with the total value of sales up by a quarter compared to the year before, the latest numbers from Statistics Estonia show.

While the 32,486 transactions registered for the year represents only a 3 percent increase from 2010, the average value of each transaction has been growing, resulting in an overall sales total of 1.5 billion euros.

Despite the gains, sales volumes last year were still less than half of what they were during the peak of the real estate boom in 2006.

Residential property, which accounts for 48 percent of the market, saw average sales values rise by 13 percent last year.

The average purchase price per square meter of dwelling space in the country increased by a tenth in 2011, with the fastest gains registered in the cities. Tallinn prices were up 13 percent, Tartu 8 percent and Pärnu 6 percent compared to 2010.

Source: http://news.err.ee/economy/740a769f-d04b-4617-b749-5d77e45b324e

Record-setting real estate sale in Sun Peaks

2012-02-10T21:51:00.000-08:00

If you had eyes on the most exclusive address at Sun Peaks, but were just holding off to make that purchase, you would be out of luck.

The most expensive home in the resort community was officially sold on Friday (Feb. 10) to a Canadian family for $3.4 million.

The chalet, which was listed through Sotheby's International Realty Canada, hit the market in December of 2010 for $4.3 million.

Located on Douglas Court, the 4,500-square-foot full timber-frame home is the ultimate in winter luxury and comes fully furnished with a wine tasting and theatre room, an outdoor hot tub and a grand piano.

Liz Forster, managing broker at Sotheby’s International Realty Canada, said the sale is a sign that Sun Peaks has come of age offering some of the finest resort properties in the world.

She suggested the family could have bought property anywhere in the world.

"They decided on Sun Peaks because this is where they want to be," Forster said, adding the buyers have frequented the resort and love the mountain.

She was unsure if the new owners would be moving to Sun Peaks permanently.

In 2010, a home on Sundance Drive sold for $2.2 million, beating the previous most expensive house at $1.5 million.

The $2.2 million home sold after being on the market for only two months.

In the case of the latest sale, Forster said a year is a typical time frame for a recreation property given the current market conditions.

It's also another good news real estate story for a community on a roll.

Last June, the Pacific National Exhibition bought two lots at the Lookout Ridge area in Sun Peaks.

Though officials with the exhibition wouldn't divulge exactly what the properties will be used for because of strict lottery rules, they are expected to be PNE prize homes in the coming years.

Forster noted there is interest in a couple of other properties in the $3-million range at the resort, which could also be sold in the near future.

Source: http://www.kamloopsthisweek.com/news/139128329.html

Real estate opportunities seminar set

2012-02-09T22:37:00.000-08:00

Christopher Lee, a national real estate analyst, will discuss emerging real estate opportunities in a seminar planned for 8 a.m. to 10 a.m. Feb. 16 at the University Business Center at University of California, Fresno.

The seminar, titled Emerging Real Estate Opportunities in Time of Change, is hosted by the university’s Arnold and Dianne Gazarian Real Estate Center. It is sponsored by Manco Abbott, a Fresno-based real estate management company that is celebrating its 40th anniversary this year.

Admission is fee and the event is open to the public.

With experience in strategic planning and performance improvement within the real estate industry, Lee is an expert in real estate development, land-use economics, investment planning, mergers and acquisitions and performance benchmarking.

Lee is president of CEL & Associates in Los Angeles.

The Gazarian Real Estate Center, housed within the Craig School of Business at Fresno State, was established by a $1.5 million gift from the Gazarians to be a resource for the real estate industry within the central San Joaquin Valley. It promotes research and provides students opportunities to learn the business side of real estate and apply their academic knowledge to real-world projects and experiences.

Free parking will be available on the University Business Center parking lot east of the Peters Business Building.

Source: http://www.thebusinessjournal.com/news/real-estate/767-real-estate-opportunties-seminar-set

Real estate trends on the north shore

2012-02-09T02:58:00.000-08:00

PROPERTIES selling for between $1.2 million to $3 million are “hot property” on the north shore.

But high-end buyers are being a bit more cautious.

Shead Property principal Hugh O’Neill said top-end buyers were more likely to be impacted by the stock market, and were usually more discerning.

“If the right property comes up, they’ll pay good money for it,” he said.

Mr O’Neill said there was strong buyer interest in Chatswood one- to two-bedroom units and three-bedroom houses.

Matthew Bourn, of Lindfield’s mcconnell bourn, said there had been strong inquiries across all levels.

Sales of properties ranging in the $1.2 million to $3 million price range were most active.

He said buyers looking in the $3 million-plus range were “ticking more boxes than they usually would” before committing.

Chadwick Real Estate principal Scott Chadwick said on the east side of Warrawee properties valued at $1.5 million to $2.5 million were “hot property”, with higher-end buyers “being much more careful” in their decision-making.

Mr Chadwick said he expected the top-end market to improve this year, as long as buyer credit was not greatly impacted by the European financial situation.

Century 21 Cordeau Marshall principal Craig Marshall said the strength of the Ku-ring-gai market was the $800,000 to $1.2 million range, with $3 million-plus properties not selling as quickly.

“The Ku-ring-gai market was strong at the end of November and December. In November we sold more than ever before,” Mr Marshall said.

Mr Marshall said he expected another rush this month and next.

Source: http://north-shore-times.whereilive.com.au/property/story/real-estate-trends-on-the-north-shore/

Real Estate Weekly- What is a 203K Rehab Mortgage Loan?

2012-02-08T01:39:00.000-08:00

Real Estate Weekly- What is a 203K Rehab Mortgage Loan?

You find this great house that is in the perfect location, it's in a great school district, excellent floor plan and the yard you always wanted. It's the lowest price in the neighborhood. So what's not to like? It's a foreclosure. And, the last occupant ripped up the carpet, punched holes in the walls, broke windows, they even took a toilet with them! Can you imagine fixing all of that? Most first-time home buyers turn around and walk out the door because they believe they couldn't possibly come up with the money to fix all of this.

Most mortgage loan programs require homes "in need of work" to be complete before the financing can be secured for the purchase transaction. Whether the property needs a little or a lot of work, most first-time home buyers simply don't have the up-front cash to invest in a property prior to actually securing the financing.

However, the FHA 203(k) Rehab Loan may be your answer to turning that "fixer-upper" into your dream home. The Federal Housing Administration (FHA), which is part of the Department of Housing and Urban Development (HUD), offers this loan program to provide for the rehabilitation and repair of single family properties. One single loan is used to pay for the purchase (or refinance) and the cost of rehabilitation or updating of the home. This loan is only available for homebuyers purchasing a primary residence that they will occupy. Unfortunately, it is not a program for investors to purchase a home fix it up and then sell.

Another great thing about this loan program is that it is originated and underwritten just like a standard FHA loan program. You can purchase the home with the same 3.5 percent down payment of a regular FHA loan and the seller can still assist with your closing costs.

There are two types of FHA 203(k) Loans: The Streamline 203(k) is used when you want to make minor cosmetic changes to a house. It also eliminates most of the paperwork required of a full 203(k) and simplifies the process to obtain rehab funds. There is a minimum of $5,000 and a maximum of $35,000 to be financed in the mortgage amount for improvements. A Standard FHA 203(k) loan allows you to make substantial structural improvements, repairs, remodeling and updating to a house or even build a new one. These are both great loans to use to find that "almost perfect" home and make it your dream home.

Deanna Parrish is a Licensed Mortgage Banker with First Priority Financial. For questions or comments you may call 468-8500 or email.

Source: http://www.ukiahdailyjournal.com/community/ci_19904109

Toronto real estate: Detached Toronto house hits average $606,600 -- up 50.3 per cent in 7 years

2012-02-07T00:36:00.000-08:00

The Canadian Real Estate Association has launched a new system for tracking home and condo sales prices aimed at giving buyers and sellers a more precise picture of what’s happening right in their neighbourhoods.

The new system will track Canadian and regional home sales and price escalations based on “benchmark prices.” Those benchmarks are based on quantitative factors (the number of rooms, bathrooms, age of home) and qualitative factors (proximity to schools, parks) and are intended to shine a light on highly localized factors that may be skewing prices up or down but not necessarily reflect market conditions.

CREA has also established a new MLS Home Price Index — similar to the Consumer Price Index which measures price inflation — that tracks prices relative to January, 2005 based on house type, be it single-family homes with one or two storeys, townhouses, row homes or condo apartments.

As of January, the benchmark price of a single-family home in Toronto hit $606,600 — $100,000 more than the $499,800 benchmark price for a similar home in the rest of Canada. That Toronto home cost 50.3 per cent more than it would have in January, 2005.

Over time, far more localized data will become available for MLS districts that should paint a clearer picture of neighbourhood trends.

“One of the key goals is to take a little bit of volatility out of housing statistics,” says Jason Mercer, senior analyst for the Toronto Real Estate Board. “It’s going to provide a good tool for consumers to understand where their home fits into the market.”

CREA will continue to release its traditional Canada-wide and regional breakdowns of average and median home prices, which it claims are often “misinterpreted” and can swing significantly, as national prices did last year when there was a rush of foreign investors snapping up homes in high-end Vancouver neighbourhoods.

Right now, just five major real estate boards across Canada are part of the new system — the GTA, Greater Vancouver, the Fraser Valley, Calgary, and Greater Montreal.

Eight more boards will start using the new measures this year, and another eight boards next year.

Source: http://www.thestar.com/business/article/1127194--toronto-real-estate-detached-toronto-house-hits-average-606-600-up-50-3-per-cent-in-7-years

Real estate firms decry new home tax

2012-02-03T22:30:00.000-08:00

HCM CITY — The municipal Construction Department has proposed the collection of a housing tax in addition to levies collected on land, but real estate firms feel the time is not right for such a move.

The housing tax, which would be imposed on a progressive basis, aims to limit speculation, foster a healthy real estate market and generate more funds for the State budget, department officials have said.

Progressive taxation would mean those who own more houses would end up in higher tax brackets.

Some real estate firms and experts have expressed worries that the house tax would impose greater financial burdens on residents during tough economic times, the Thanh Nien (Young People) newspaper reported yesterday.

Experts say real estate speculation focuses on land, so the proposal envisages a kind of property tax, while high value assets like airplanes and yachts have not been taxed yet, according to the report.

It said most real estate companies thought this would not be the time to implement the housing tax proposal because it would make the situation worse for an already weak market.

Acknowledging that progressive housing tax would encourage land and house purchases for accommodation, experts said that the law allowed citizens to purchase these both for accommodation and as investment in assets.

Furthermore, there were already many real estate taxes, including a 2 per cent tax on land transfers or a 25 per cent tax on profits (based on current assessed value). The new proposal would cause prices to rise further, they contended.

"We need proper solutions at right time. If not, there will be serious consequences." said Nguyen Van Duc, vice chairman of the HCM City Real Estate Association. — VNS

Source: http://vietnamnews.vnagency.com.vn/Economy/220334/real-estate-firms-decry-new-home-tax.html

State Real Estate Drop the Worst on Record

2012-02-02T23:11:00.000-08:00

Home sales in Connecticut dropped 13 percent in 2011, making it the worst on record, according to The Warren Group, the preeminent compiler of real estate statistics in New England.

Sales of single-family homes in Connecticut dropped to 21,141 in 2011, down from 24,270 in 2010, according to Warren statistics. It marks the seventh straight year in which sales volume declined from the prior year.

Cheshire's real estate market, as shown by Sally Bowman Real Estate has 109 homes on the market as of mid-January. With an average of 2,594 square feet and 4 bedrooms, the average list price is about $478,000. Homes stay on the market for about seven months before selling.

State-wide, December's 1,714 single-family sales represented a nearly 8 percent year-over-year drop from 1,858 in December 2010.

Fourth quarter numbers were also down 6.5 percent year-over-year - 4,961 single-family home sales compared to 5,306 in the fourth quarter of 2010. It was the slowest fourth quarter for single-family sales ever recorded by The Warren Group.

Still, sales volume beat the first quarter 2011, when there were 3,950 sales, according to Warren's report.

December represented the fourth straight month that single-family sales decreased in Connecticut. In all of 2011, year-over-year sales volume only increased in January and August.

"The market in Connecticut is very slow. I think it's fair to say we are bumping along the bottom and can only go up from here," said Timothy M. Warren Jr., the chief executive officer of The Warren Group. "As the employment picture and consumer confidence improves, housing will slowly follow suit."

The median price for Connecticut single-family homes sold in 2011 was $243,000, a 2.8 percent drop from $250,000 in 2010. The median price for single-family homes sold in December dropped nearly 9.5 percent to $220,000, down from $243,000 during the same month in 2010.

That represents the lowest median home price in since February 2009, when the recorded price was $219,104. The median price for single-family homes sold during the fourth quarter decreased by 9 percent to $225,000, down from $247,500 in the fourth quarter 2010.

"December's decline in median prices is the sixth drop in 2011. So prices are still soft, reflecting a slow market," Warren said.

According to the Warren report, condominium sales fell to their lowest yearly total in more than two decades. A total of 5,704 Connecticut condominiums were sold in 2011, a 16.4 percent decrease from 2010, when 6,824 sales were recorded. Fourth quarter condo sales dropped 2 percent to 1,370 from the 1,401 recorded during the same time in 2010.

In the month of December, however, condo sales increased, Warren said. A total of 518 condos traded hands, a 12.6 percent jump from 460 sold during the same time a year ago. Year-over-year condo sales only increased in August and December.

That trend was seen in Cheshire as well, according to Sally Bowman Real Estate. The company reports 44 condos are on the market with an average list price of about $264,000. It takes about seven months for the average condo to sell in Cheshire.

Condo median prices also increased in 2011, the report indicates. The median price decreased more than 6 percent to $173,250, down from $182,250 in 2010. The median sales price of condos in December also dropped by almost 13 percent to $167,000, from $191,500 during December 2010.

Condo median prices dropped even further in the fourth quarter to $161,750, a 13.7 percent drop from $187,500 recorded in the fourth quarter 2010.

Source: http://cheshire.patch.com/articles/state-real-estate-drop-the-worst-on-record

City real-estate values fall

2012-02-01T00:48:00.000-08:00

Total real-estate values in the city of Charlottesville decreased by 1.22 percent last year, according to assessment figures released Tuesday by the city.

Of the city’s 13,031 taxable residential parcels, approximately 39 percent will show a decline in value, while 59 percent will show no change, according to a city news release. These figures do not include new construction and property improvements.

Reassessment notices were mailed Tuesday to all city property owners, according to officials.

This year marks only the second time since the city began keeping records that values declined overall. The first occurred in the 2010 assessments, when existing residential properties fell 2.19 percent, and total values fell 0.76 percent.

For 2012, assessments for existing residential properties declined by 3.08 percent, while assessments for existing commercial properties increased by 0.84 percent.

The average decline in value is about $10,000, according to City Assessor Roosevelt Barbour Jr., but specific numbers depend on the neighborhood.

“We’ve got a lot of sales that are under assessment, but we don’t have a lot of people losing their homes,” Barbour said. “That’s good.”

Foreclosures jumped from 43 in 2010 to 53 in 2011, an increase of nearly 25 percent, Barbour said, adding that Charlottesville is still seeing fewer foreclosures than other localities.

Barbour, whose office reviews previous assessments and sales information to determine property values each year for tax purposes, has said the decline can be chalked up to the “continuing slow economy.”

The assessor divides the city’s residential properties into 47 different sections, and Barbour said only one section — a part of Belmont just west of Avon Street — saw an assessment increase.

This year’s decline follows an increase of 0.63 percent last year, largely due to new construction.

Downward real estate trends are also straining the city budget. Officials are working to find a way to close an estimated $1 million to 2 million deficit, caused partly by declining real estate revenue.

City budget officials are projecting real estate revenues of about $49.9 million for fiscal year 2013, a drop of about 1.1 percent, or about $550,000, from the current budget. Officials projected real estate revenue of about $50.4 million in the current year, but that number was also revised downward by 1.4 percent.

Other revenue streams — particularly meals and lodging taxes — are performing better than expected, which helps to balance out the stagnant or falling real estate revenue, officials said.

“… We see no overall negative impact due to the decline in assessments on the fiscal year 2012 budget,” city spokesman Ric Barrick said in an email.

Property owners who have not received an assessment notice by Monday or those with questions can contact the assessor’s office at 970-3136.

Assessment numbers are accessible on the city’s website at http://realestate.Charlottesville.org.

Property owners who wish to discuss an assessment must do so by March 1 to be eligible for a review.

Albemarle County plans to finalize its assessments today.

Source: http://www2.dailyprogress.com/news/2012/jan/31/city-real-estate-values-fall-ar-1653961/

Local real estate market ready to rebound

2012-01-30T21:18:00.000-08:00

Prices seem to have hit bottom; a recovery should follow

Those with ties to the local real estate market are welcoming some long-awaited news in the beginning weeks of 2012 home prices may have finally bottomed out.

In most regards, hitting bottom is undesirable, but for the area's real estate market, which largely is the driver of the local economy, it in all likelihood means the beginning of a recovery.

And a recovery cannot come soon enough, local Realtors say, as significant depreciation in value and demand over the past few years has meant slow to no growth for the area's real estate-based economy.

While that has been the scenario for the past few years, Chuck Mangold Sr., managing partner of Benson and Mangold Real Estate in Easton, said he believes prices have finally bottomed out, and purchases are beginning to pick up as a result.

"Over the past six weeks, it's been the busiest I've seen it in the nearly 30 years I've been in the business," he said. "It's inordinately busy given the time of year."

Prices are back to 2001 levels, after dropping between 40 and 50 percent from peak levels in 2006, said Mangold, who called it "the best time ever" to buy real estate in Talbot County.

Echoing that sentiment was Hugh Smith, broker of Coldwell Banker in Easton, who said there are some "phenomenal" values to be had right now.

Although inventory is still high, Smith said it seems to be shrinking, and only will shrink more as demand increases.

"We've had a number of good sales in the first few weeks of January," he said. "But I think people will wait for the elections to really express their enthusiasm."

While optimistic that a recovery will begin in 2012, Smith said it may not be all uphill, as a number of foreclosed properties now owned by the banks and a number of short sales have yet to come to the market.

Those properties will most likely drive real estate market trend lines for 2012, he said, but aren't expected to prompt any more radical changes.

Even with a recovery, though, Smith said he doesn't believe the local market will return to where it was during the boom years.

"We have a good shot at stabilization this year, but as we start to recover, we will recover equal to the rate of the consumer price index 2 to 2.5 percent a year," he said. "It's a mistake to think we'll go back to the double-digit appreciation rates. It's going to take a while for this ship to right itself."

Still, Mangold said, a recovery is a recovery, and even a small one will have a ripple effect throughout the local economy.

"I think it's going to translate fairly quickly into a boost for the economy," he said. "These buyers are going to be doing some remodeling and put on some additions all of the stuff that's been missing for the past five years."

They key factor that's changed, Mangold said, is sellers finally have gotten realistic about pricing.

"That's the difference here," he said. "Before, sellers were waiting for a lightning strike, and lightning strikes don't happen any more. If something is priced right, it will sell."

In addition to sellers holding out for a higher price, tightened lending has been another hindrance to a quicker recovery, Smith said.

"There are low mortgage rates out there, but only for the most credit-worthy customers," he said. "Mortgages have been at historic lows for a long time now, and we're not seeing any effects from it."

Another reason the local market hasn't been able to recover as quickly, Smith said, is because the region is still suffering as a whole.

"We work with a lot of people who would like to buy property here, but can't do so until they sell their house on the western shore or somewhere else," he said. "It's sort of a big daisy chain. If people can't sell their property, they can't come up with the equity to move here."

Of course, consumer confidence also has played a big part in delaying a recovery that Smith himself thought would begin last year.

"We saw a surge in our business in February 2011 we saw the market starting to gain some traction and confidence starting to return," he said. "Then we turned on our television sets and saw rioters in Tunisia and Egypt the beginning of the Arab Spring then the earthquake in Japan, which resulted in the meltdown of the nuclear reactor. We saw all the confidence just evaporate because of the huge volatility in the national equities markets, the huge number of foreclosures on the Eastern Shore. For the balance of the year, we didn't feel there was much confidence around at all."

With a new year, however, comes new hope hope that all the hindrances will subside and a recovery will emerge.

Source: http://www.stardem.com/article_b6800b10-33f4-5641-a059-f5827e7425ea.html

TOP 25 COMMERCIAL REAL ESTATE DEALS OF 2011

2012-01-29T21:28:00.000-08:00

1. $18.6 million: Wilsonville-based senior housing company Avamere sold the Riverpark nursing home on Goodpasture Island Road to Nationwide Health Properties, which merged in February with Ventas, a Chicago-based real estate investment trust.

2. $8.3 million: Avamere also sold Eugene Rehab & Specialty Care, 2360 Chambers St., to Nationwide, which became Ventas.

3. $7.8 million: Oregon assisted living developer Farmington Centers Inc., sold Farmington Square Residential & Memory Care in Eugene to Maryland-based Lord Baltimore Group. Lord Baltimore Group has a $2 billion portfolio with assets in venture capital, timberland and real estate.

4. $7.5 million: A limited liability company including developer Dean Pickett sold “The Commons on Alder” project in south Eugene. The four story, 20-unit student apartment originally was planned as a seven story building, which riled neighbors and led to a smaller project.

The buyer is a Sisters-based limited liability company managed by Dutch investor Willem Willemstein, founder of European petroleum wholesaler Petroplus. Willemstein holds Bend investments, including a stake in the Tetherow Golf Club.

5. $7 million: Eugene-based Good Neighbor Care Centers, an assisted living business, sold its Good Neighbor Care Eugene, 2630 Lone Oak Way, to Living Care Senior Housing Development of Seattle.

6. $6.55 million: A Lake Oswego trust sold the River’s Edge Townhomes on the south bank of the Willamette River at Maurie Jacobs Park to a limited liability company Oy Vavoy, whose owners are Robert Meyers, a Eugene property manager; Neil Schifberg, a Eugene investor; and Peter Zackery, as manager of a trust.

7. $5.97 million: Eugene developer Arlie & Co., which successfully emerged from a Chapter 11 reorganization, sold the Westlane Shopping Center in Veneta to developer John Hammer.

8. $5.97 million: Avamere sold its Junction City Rehabilitation facility to Nationwide, which became Ventas.

9. $4.55 million: Berkeley, Calif., company Meyer Crest Ltd. sold the Best Western Grand Manor Inn, one block east of Gateway, to investors Jasvir and Paramjit Dhaliwal of Olympia.

10.$4.1 million: Lone Rock Timber sold 1,668 acres — near Camp Creek Road northeast of Springfield — to a timber investment management organization set up by Lone Rock Timber Investments of Portland. TIMOs allow institutional investors, such as retirement funds, to buy into timberlands. Investors in the Lone Rock TIMO can be individuals, small endowments, trusts and family offices, but the minimum to start is $100,000, according to Lone Rock.

11. $3.67 million: Rosboro wood products company in Springfield sold 1,430 acres of timberland west of Junction City to a Giustina family partnership, including L.M. and A.J. Giustina.

12. $3.5 million: Springfield V, a limited liability company managed by Mark McDonald, sold the land and buildings housing Mattress Mania and the Castle Megastore on Gateway to a limited liability company called GATEWAY 4 INVESTORS, whose members are real estate broker Tim Campbell, cabinet makers Brent and Lori Lanz as trustees; and commercial developers William and Barbara Sokol as trustees.

13. $3.2 million: Eugene’s McIntyre Construction sold its building at 1500 Westec Drive near the old Hynix plant to a limited liability company called Burley Buildings, which is managed by Michael Coughlin, owner of Burley, the bike trailer manufacturer. Coughlin also owns the Citizens Building downtown.

14. $2.8 million: The Portland-based Coburg Properties I Inc., formerly known as Farwest Transportation Northwest, sold its truck service center near Interstate 5 at Coburg to a Ridgefield, Wash., company associated with Pacific Power Products, which sells, services and remanufactures diesel engines.

15. $2.8 million: A limited liability company managed by Dan Giustina sold a building on the northeast corner of Broadway and Pearl Street that houses Cafe Zenon, Nick & Noras, Goldworks and Hawthorne’s Cafe & Deli to an Albany couple, Richard and Shelli Mikesell.

16. $2.8 million: Spencer Glenn LLC, whose members include Karen Dahlen of Eugene, sold 171 acres south of the Eugene urban growth boundary to Douglas and Jenny Noland of Pittsburgh. Earlier, Dahlen had the land rezoned from farm or forest — which can’t be developed under Oregon land use laws — to a “marginal lands” zoning, which can be developed with one house per 20 acres.

17. $2.7 million: A Romania family holding company sold the long-vacant Good Guys building in the Delta Oaks shopping center in North Eugene to “Delta Oaks Group,” a limited liability company managed by Tim Campbell, a commercial real estate broker. Campbell was the leasing broker for the property when it was owned by the Romanias.

18. $2.7 million: South Lane Investment Co., led by Tod Woodard, sold a lot across Highway 99 from the Weyerhaeuser mill south of Cottage Grove to CKK Acquisition LLC, of which Woodard is a member. Woodard is an heir of Cottage Grove lumberman Walter Woodard.

19. $2.6 million: AP-Seneca, based in San Marino, Calif., sold a mini shopping center near Home Depot on Seneca Road in Eugene — which houses West Coast Bank and Sleep Country USA — to Paul Schaffner, owner of the commercial appraisal firm Charles P Thompson & Associates.

20. $2.6 million: Weyerhaeuser sold its Coburg veneer plant and 154 acres around it to PNW Exchange, a legal tax shelter for land owners who exchange — rather than sell — property to avoid capital gains tax. In this case, it was arranged by Cascade Exchange Service Inc., an affiliate of Cascade Escrow and Cascade Title Co. The new property owner is Rexius Sustainable Solutions, which plans to spend 2012 moving its composting operations to the Coburg site.

21. $2.56 million: Morrison & Golden Enterprises Ltd., which includes Eugene resident Patrick Golden, sold the 51-unit Lawrence Court HUD Section 8 apartments to Gemini Oregon III LLC, which is owned by Kevin Merwin, Jeffrey Guckenberger and Mark Kalen, the president of Kalen Electric & Machinery.

22. $2.4 million: Umpqua Bank — which accepted a deed in lieu of foreclosure last year on this property — sold two large-scale industrial buildings near the old Hynix plant to Knoll LLC, whose members are local investors John Hammer, Jack Louie and Roscoe Divine.

23. $2.4 million: Poul Olesen and Svend Toftemark — founders of Emerald Excavating — sold the Scandia Village Mobile Home Park to a limited liability company, whose members include Newport Beach, Calif., resident Peter DeBaun, who is associated with several mobile and manufactured home properties.

24. $2.39 million: Portland firm TAH Enterprises sold the North Bay Condo building on Harbor Street in Florence — a four story, 30-unit building with 1,900 square foot of retail space — to Vertical Capital LLC, which is managed by strategic tax and business consultant Nathan Wheeler of Tigard.

25. $2.35 million: Ed Miesen of Seattle sold 193 acres of open space in the south hills to the city of Eugene to expand the public Ridgeline Trail.

Source: http://www.registerguard.com/web/business/27510677-41/million-sold-eugene-company-liability.html.csp

REAL ESTATE: Home building reaches record low

2012-01-26T22:28:00.000-08:00

Responding to falling prices and stiff competition from foreclosures, home building activity in 2011 dropped to an all-time low in Inland Southern California, according to a report released Wednesday by the California Building Industry Association.

Statewide, 2011 marked the third lowest year on record for overall housing production. A record low in the volume of single-family home construction was only somewhat offset by an increase in the construction of multi-family homes, particularly apartments, which analysts said reflects the increased difficulty in qualifying for mortgages, the weakened economy and a loss of consumer confidence.

In the Riverside-San Bernardino-Ontario metropolitan statistical area, home construction activity last year declined 18.6 percent from 2010, based on building permit data compiled by the Construction Industry Research Board. There were 5,214 housing permits issued last year, down from 6,404 in 2010. Single-family home construction in the Inland region dropped year over year almost 29 percent to 3,732 homes, reaching yet another record low.

By contrast, the volume of multi-family homes, which includes apartments, condominiums and townhouses built last year increased in Riverside and San Bernardino counties by a little more than 26 percent to 1,482 units, the vast majority assumed to be rentals.

The rapid disintegration of the new-home market last year surprised the home building industry, said Steve Johnson, Riverside director of the MetroStudy real estate consulting firm.

“It really broadsided everyone to see the market gradually melt away. Consumer confidence went into the tank,” Johnson said. Although an uptick in Inland job creation has been seen in the last 90 days, “it wasn’t enough to save us last year,” he said.

Chapman University Economist Esmael Adibi said while some people yearn for a revival of home building to spur the economy, an influx of new homes would add to the already high supply of resale homes and push down home prices.

“Why should builders build when there is so much out there to compete with?” he said.

The Building Industry Association, in releasing Wednesday’s report, called on cities and counties to lower and defer development impact fees so new homes can better compete on price with bank-owned homes.

Meanwhile the thrust of home construction is shifting from single-family homes to rental units.

“That shows a lot of people are shying away from buying and they are renting,” Adibi said.

One reason for that, he said, is there are many people in this economy with damaged credit histories who can’t buy homes because they don’t qualify for mortgages. This includes people who have lost their homes to foreclosure.

“You are dealing with a situation where the demand for homes is basically filled by the foreclosure process and the foreclosure process in turn has been stimulating a larger demand for rentals,” said Chris Thornberg, founding economist at Beacon Economics in Los Angeles.

However, the trends are positive, said Thornberg.

“The state doesn’t have enough housing. You can see that in the falling vacancy rates and rising rents in the multi-family market,” he said.

Ultimately job growth will revive the consumers’ appetite for home buying, he said, scoffing at those who say the housing bust could create a renter society.

Source: http://www.pe.com/business/business-headlines/20120125-real-estate-home-building-reaches-record-low.ece

CRE Show: US Retail Real Estate Market on the Road to Recovery

2012-01-24T01:59:00.000-08:00

The Great Recession left the retail real estate market ailing, but the sector exhibited some significant signs of health last year and should continue to recover in 2012.

Guests of the most recent episode of the "Commercial Real Estate Show" provided those observations and others in a detailed look at the market. Topics included retail spending, investment sales activity, landlord-tenant negotiations and the growth of Smashburger, an award-winning, fast-casual restaurant chain.

On a chain-store basis, retail spending grew by 4.7 percent in 2011 when compared to the year before, according to Michael Niemira, chief economist for the International Council of Shopping Centers. The growth was the largest since 1999, but Niemira qualified the rise by noting it was fueled to a large degree by price increases implemented by retailers grappling with inflation in their supply chains.

Chain-store sales should increase by 3 percent in 2012, Niemira said. "In many respects, [that] is a better number because the inflationary pressures are receding," he added.

Investment sales of retail properties also grew substantially in 2011. Such transactions totaled about $47 billion last year - almost double 2010's figure of $24 billion, said Kevin Imboden, senior market analyst for Real Capital Analytics, who added his firm hasn't finalized the 2011 figures yet.

"A lot of investors are looking for new opportunities," Imboden said. "I think there might be a little bit of a conservative element too because a lot of the centers that were selling were grocery-anchored strip centers ... Everyone needs to go to those centers."

Max Sheets, senior vice president of real estate for Smashburger, said his firm concentrates on what he calls "A+" real estate - meaning the site features high traffic counts, has big-box retailers nearby and is in an area where the household incomes are $60,000 or more. The rents for such locations have risen above their pre-recession levels, Sheets noted. "Thankfully, what I'm starting to see is construction start again," he said.

Jonathan Neville, a partner with the Arnall Golden Gregory law firm, said retail tenants are now frequently trying to negotiate self-help provisions into their leases to allow them to recover the expense of property repairs and maintenance they undertake in the face of landlord inaction.

Such negotiations often feature "an argument as to how you get your money back, whether you can offset rent, whether you just send a bill to the landlord and hope they pay it, orwhether you have to go to court," Neville said.

Self-help provisions are easier for big, national tenants to get, Neville added.

To learn more about the U.S. retail real estate market, listen to the whole show, which is available for download at CREShow.com. The next "Commercial Real Estate Show" will be available Jan. 25 and will provide an update on the U.S. industrial market.

Source: http://baltimorerealestate.citybizlist.com/3/2012/1/23/CRE-Show-US-Retail-Real-Estate-Market-on-the-Road-to-Recovery.aspx

Kensington's real-estate on solid foundations

2012-01-24T01:58:00.000-08:00

KENSINGTON was ranked Melbourne's third-strongest growth suburb with a 12 per cent quarterly jump in median price, from $645,000 in the September quarter to a $725,000 in the December quarter.

The Real Estate Institute of Victoria released the December 2011 quarter statistics last week, showing increased stability compared to the September quarter, when figures showed an average median price drop in metropolitan Melbourne.

REIV chief executive Enzo Raimondo credited two interest rate cuts last year for the increases and improved stability.

Mr Raimondo said overall transaction numbers were significantly lower compared to the same time the previous year.

Clifton Hill, Carlton North, Brunswick East and West all recorded fewer than 30 sales in the quarter.

North Melbourne also recorded fewer than 30 sales, but the median price increased 11 per cent to $915,000 in December.

Suburbs including Fitzroy North and Thornbury recovered ground lost in the September quarter. Fitzroy North's December median was $850,000, up 5 per cent from $807,500 in September.

Over the course of 2011, Thornbury's price dropped 11 per cent but recovered 1.3 per cent in December, resting at $687,000 at the end of the year.

In apartment prices, North Melbourne stood out thanks to a 17 per cent quarterly increase and 16 per cent overall annual change. Median North Melbourne apartment prices increased from $430,000 in September to $505,000 in December.

The median house price in metropolitan Melbourne was $550,000, up nearly 2 per cent from the $540,000 September median.

The REIV did not expect significant change during the March quarter, traditionally a quiet time of year for property sales.

Source: http://www.melbournetimesweekly.com.au/news/local/news/general/kensingtons-realestate-on-solid-foundations/2429505.aspx

Dubai real estate: Residential market close to bottom

2012-01-22T23:11:00.000-08:00

It will be a broader recovery for the Dubai residential market in terms of prices and rentals next year than just some pockets showing signs of stablistation this year, according to Jones Lang LaSalle (JLL).

“Residential market is close to bottom while prices are increasing in certain areas. We will see some recovery by end of the year, but the market sector as a whole will recover next year,” Craig Plumb, Head of Research, Jones Lang LaSalle Mena, said on Sunday.

Abu Dhabi residential market will, however, continue to decline as more supply is released.

“Due to the significant development pipeline, rents will continue to experience downward pressure. This will help decrease the rent premium that Abu Dhabi has maintained over Dubai to date.”

Alan Robertson, CEO, Jones Lang LaSalle MENA said year 2011 was a difficult year for real estate investors with most sectors of the market moving in the favour of tenants, with lower prices and rentals.

“While these trends appear likely to continue into 2012, the main trend for this year is likely to be an increasing polarisation within each sector of the market. As the performance of the best quality projects will improve, average prices are expected to decline further in 2012 within this increasingly two tier market.”

JLL believes the UAE will see an increase in property transactions this year, driven by

private investors and high net worth individuals rather than investment institutions. The majority of whole building sales will be in the residential sector, with a preferred asset price of Dh30 to Dh70 million.

“The UAE real estate market becomes generally more realistic during 2012. Lower prices, more choice of higher quality product and its role as a regional safe haven will increase the attractiveness of the UAE market to both occupiers and investors this year,” Plumb added.

Robertson said that the local real estate market will continue be impacted by regional and global events during 2012 as, the UAE is not immune from the on-going impact of the Arab Spring and the economic troubles of the Eurozone.

“As we enter 2012, the real estate sector will inevitably be susceptible to any potential geo-political changes within the region, with the recent escalation of rhetoric between Iran and the West being the major cause of uncertainty. The worsening European debt crises and its impact on the global economy will be the other major external challenge to the UAE real estate market in 2012,” he added.

Source: http://www.emirates247.com/property/real-estate/dubai-real-estate-residential-market-close-to-bottom-2012-01-22-1.438898

Property sale shows confidence in Ararat

2012-01-19T22:41:00.000-08:00

ARARAT - Despite many investors taking a negative attitude towards real estate following the global financial crisis, Ararat's property market appears alive and well.

First National Real Estate Ararat has just recorded the highest selling property in the firm's history, and perhaps one of the highest Ararat's CBD has seen.

The property, located on the corner of King and High streets, houses the Centrelink offices and was purchased by private Melbourne investor Vic Murray and his son-in-law for more than $1 million.

Mr Murray would not disclose the exact amount of the purchase but said he hoped the big investment would be long term.

"We were happy with the price we got it for, we offered less than what they were asking (reserve price of $1.75 million), this is a fairly big investment for us, I do have some other property in Melbourne, factories and shops and stuff like that, and hopefully this is going to be another long term asset," he said.

Mr Murray became interested in buying in the area after seeing a story about the town on the ABC.

"We've been looking around for an investment together and I saw a story on the 7.30 Report where they were talking about Ararat and the issues going on with the council, and they mentioned the jail being extended and that an extra 100 jobs would be created," Mr Murray said.

"I'd seen what happened in Wonthaggi with the desalination plant, and that town just grew. With around 100 new jobs at the prison, if you extrapolate that out to included wives and kids it means more schools and more services of every kind, then Ararat is going to grow too.

"I came up here and had a look around and saw that Aldi had just built a new store and I thought well they're not going to invest in a town unless they think that something is happening around the place.

"Just driving down the main street, all the car parks are full, there are people everywhere, and I thought yeah the town's humming along, the new police station, the hospital has been extended it looks like a great place to invest."

Mr Murray contacted First National Real Estate's Ararat director Phil Clark, who showed the investors available properties around the region.

"Vic felt that it was a good return, and that's why people from the city are investing in regional areas of Victoria and in Ararat, because they feel like they get a good return," Mr Clark said.

"They've got a good tenant in Centrelink, a government tenant, and a fairly new building."

Construction of the building was completed in early 2009, after being purpose built to house Centrelink offices. The same Mildura developer also constructed a Centrelink building in Stawell three years ago, which is yet to be sold.

Mr Murray said if Centrelink decided not to renew their lease in 2015 the property's modern facilities and prime location made it a great attraction for any business.

"If they (Centrelink) were to move out in four years' time a building like that could become a major retail outlet for a Harvey Norman or something like that, but we want Centrelink to stay here, absolutely," he said.

"We are planning a few improvements for the building already, we are going to try and make it a bit more energy efficient and coat the roof in a reflective paint that reduces the energy of the air conditioning by about 20 percent, and I am about to investigate putting solar power in, I've got a few things in mind because it is a long term investment."

Mr Clark said from a real estate perspective it is a good sign that Melbourne investors can see the town is growing and that they are supporting the community by purchasing property.

"It shows that the property market in Ararat is strong, and people are investing here which is good. It's very positive and there are a lot of job prospects with the prison development, and I guess that is another good reason to invest in the town now," he said.

Source: http://www.araratadvertiser.com.au/news/local/news/general/property-sale-shows-confidence-in-ararat/2426815.aspx?storypage=0

Rise in rental yields lifts hopes in real estate market

2012-01-18T21:56:00.000-08:00

SLUMPING home prices and poor housing affordability helped lift quarterly rental yields for the first time in nine months, raising hopes for an improved real estate market this year.

National median weekly rent for houses rose 1.1 per cent in the final quarter of last year, while rents for apartments and units rose 1.4 per cent, according to Fairfax-owned Australian Property Monitors. Both measures had been flat in the previous two quarters.

''Increasing competition for properties, particularly from homebuyers unable or unwilling to enter the property market, has resulted in rising rental prices over the December quarter for both houses and units,'' an APM senior economist Andrew Wilson said.

Australian housing is considered among the least affordable by global standards. The median home price stood at $450,000 in November.

The quarterly rise in rents - typically a sign of a robust property market - masks unevenness across the major capital cities, with house rents in Sydney increasing 4.2 per cent over 2011, while falling in Melbourne by 1.4 per cent. For the year, unit rents rose 4.5 per cent in Sydney and 2.9 per cent in Melbourne.

''It has been a much less competitive rental market in Melbourne than in other capital cities,'' Mr Wilson said. A wave of new inner city unit construction, expected to be brought on to the Melbourne market over the coming year, will likely put a cap on rents in the city.

Mr Wilson said Sydney rents may soften slightly this year after a surge of first home buying activity in the fourth quarter of 2011. First home buyers rushed to take advantage of the NSW stamp duty concession for first home buyers which expired at the end of December.

''The fundamentals of the property market are starting to reassert themselves,'' Mr Wilson said.

Yet, economists remain divided about how rapidly, if at all, the housing market will rebound on lower rates, given the European debt crisis clouding the borrowing and spending decisions of Australians.

Source: http://www.smh.com.au/business/rise-in-rental-yields-lifts-hopes-in-real-estate-market-20120118-1q6l8.html

Auckland property boom 'seasonal'

2012-01-17T21:09:00.000-08:00

The number of houses sold in Auckland was up almost 28 per cent in December from a year earlier and prices had risen by an average of more than $29,000, according to the latest Real Estate Institute of New Zealand data.

While such a strong spike could seem alarming, the Auckland real estate market had actually eased last month from November showing it was following typical seasonal patterns rather than suddenly racing ahead. Prices are still expected to increase modestly during 2012.

There were 1826 houses sold unconditionally in Auckland in December, at an average price of $484,375. This compares to 1428 properties sold the previous December at $455,000 on average.

In November, the market was more buoyant than last month - 2266 houses were sold in Auckland with an average price of $490,000.

"Volumes were lower than November, as expected given the shortened working month, and were down by almost 20 per cent on an unadjusted basis," said Real Estate Institute chief executive Helen O'Sullivan.

"However, on a seasonally adjusted basis, taking into account factors such as Christmas, sales volume was up 2.4 per cent. After hitting a new record high median house price in November, prices eased back in December."

December was a strong month for real estate sales in New Zealand, with the most transactions since 2007, and Auckland had its strongest December since 2006.

Across the different regions in Auckland, the residential property market displayed varying degrees of improvement.

North Shore property prices soared to an average of $575,000 in December from $550,000 a year earlier. This was up from $570,000 in November. Volumes had also increased during the year, from 297 houses sold in December 2010 to 391 last month, down from 431 in November.

In Waitakere prices were also up, rising to 234 sales at an average of $418,500 from 297 sales at $365,000 on average in December 2010. In November, 318 houses sold in Waitakere for an average price of $402,250.

Central Auckland had 602 houses sold for an average of $557,500 each in December, up from 456 sales at $500,000 a year earlier. Sales were stronger in November with 808 sales at $565,000 on average.

There were 317 houses sold in Manukau during December for an average price of $475,000, up from 295 sales at $455,000 a year earlier. In November there were 232 houses 423 houses sold in Manukau for an average of $484,000.

Rodney District was relatively flat from a year previously in December. There were 119 houses sold for an average of $433,000 last month compared to 89 sales at an average of $432,000 in December 2010. In November, there had been 119 homes sold in Rodney for $465,000 on average.

Source: http://www.stuff.co.nz/auckland/local-news/6277079/Auckland-property-boom-seasonal

Commercial real estate margin reaches levels of 2004-2005, says expert

2012-01-16T22:26:00.000-08:00

Kyiv, January 16 (Interfax-Ukraine) – Selling prices of offices and trade space in 2011 fell by around 10-12%, while their rent rates grew by some 10-12%, the chairman of the committee for analysis and real estate market statistics at the Union of Realtors of Ukraine, and the director of the assessment department at Samson, Vsevolod Zhoholev, has said.

"A stabilization of selling prices on the commercial real estate market [offices and trade space] was not registered. Rent rates in the U.S. dollars grew by 10-12% and the selling prices fell by the same figures. The said pace is seen on the offices and trade space markets. Today the commercial real estate margin has reached its maximum historic indicators of 2004-2005," Zhoholev said at a press conference at Interfax-Ukraine in Kyiv on Monday.

He added that last year vacancy of offices and trade premises in Kyiv narrowed.

"There are fears that it could expand unsteadily – if crisis in the economy continues, investors could find no leasers," he said.

The expert said that in the first half of 2012 the selling prices of offices and trade space will be stable, while rent rates could continue growing.

Source: http://www.interfax.com.ua/eng/press-conference/91732/

Real Estate Watch: Tips For Sellers In Today's Market

2012-01-13T20:51:00.000-08:00

As the spring market becomes more active, sellers will have to work hard to make their homes stand out among the rest. While some markets are stabilizing, others continue to face challenging conditions.

Millions of existing homes are sold each year, and while each transaction is different, every owner wants the same thing- the best possible deal with the least amount of hassle and aggravation.

Unfortunately, home selling has become a more complex business than it used to be. Market conditions are different, and buyers are thinking differently. The result is a frustration on the part of many sellers when it comes to getting their house sold.

The home-selling process typically starts several months before a property is made available for sale. It's necessary for sellers to look at a home through the eyes of a prospective buyer and determine what needs to be cleaned, painted, repaired and tossed out.

Sellers should ask themselves- If I were buying this home, what would I want to see? The goal is to show a home which looks good, maximizes space and attracts as many buyers- and as much demand - as possible.

Here are some tips to get you on your way to getting your home sold.

1. Hire a Professional. This is no time to be navigating the rough waters of the real estate market on your own. If your realtor asks to bring in a professional stager, you should agree. There are lots of things that realtors can do- and some staging is easy. But bring in furniture and accessories is not easily done, and you will need someone who has the items at the ready.

2. Be Available. Actually…I don’t really mean you, but I mean the house. Be sure to make your home available for showings. Your realtor spends considerable time and effort to advertise, qualify prospects, show the property and ultimately negotiate the sale. Try to accommodate requested appointments whenever possible.

3. Be Realistic about Pricing. It is much wiser to price a home correctly from the start of the selling process than to have an overpriced home sit on the market for months only to have to do a price reduction. You get much more traffic on a well-priced home and newly listed home.

Statistics show that when a home is priced right from the start, they obtain a higher percentage of the asking price. Once a home has had a price reduction, buyers think they can negotiate even more. For instance, if a property could have sold for $800,000, but listed at $950,000 instead, chances are when the sellers come down to $800,000, it will still sit on the market. More price reductions will probably have to take place before it sells.

4. Detach Emotions. This isn’t personal, its business.

When conversing with real estate agents, you will often find that when they talk to you about buying real estate, they will refer to your purchase as a "home." Yet if you are selling property, they will often refer to it as a "house." There is a reason for this. Buying real estate is often an emotional decision, but when selling real estate you need to remove emotion from the equation.

You need to think of your house as a marketable commodity. The goal is to get buyers to see it astheir potential home, not yours. The first step in getting a home ready to sell is to "de-personalize" it.

Sellers may have the inclination towards adding sentimental value to a home. They see the memories and work they’ve put into a property and think every buyer should recognize this. This kind of attachment will make it harder to make smart and timely decisions about offers.

Put away family photos, sports trophies, collectible items, knick knacks and souvenirs. Do not just put the boxes in the attic, basement, garage or a closet. Part of preparing a house for sale is to remove "clutter," and that is the next step in preparing your house for sale.

5. Don’t Hover. Sellers can put a lot of heart and soul into staging and getting a home ready for the market. They might want to hang out during an open house. Resist the urge. This makes it very uncomfortable for buyers. So, during showings of any kind, be sure to make yourself scarce.

6. Be Flexible. It’s no secret that today’s market can be challenging for many sellers. Some markets have seen sharp price declines and shallow buyer pools. This means you need to be flexible on both price and terms. Don’t compromise on your bottom line, but understand that you must be willing to negotiate.

7. Positivity. Focus on the good in today’s market. Pull your attention to the feedback you get from your agent and prospective buyers! Most of all, don’t get discouraged. You will find a buyer!

Selling in today’s market can be a tough. So, whether you’re selling to move up, downsize, avoid foreclosure or are following a job, be sure to keep these tips in mind for smooth sailing.

Source: http://pleasantville.patch.com/articles/real-estate-watch-tips-for-sellers-in-today-s-market

Real Estate market returning

2012-01-12T21:37:00.000-08:00

Sales of existing homes in the four-county Milwaukee area rose 4.2% last year, but prices continued to drop - in some cases reaching average lows not seen since 2001.

Economists said Wednesday, however, that unless the economy takes a bad turn, they believe the worst likely is over for the existing-home market, and prices should begin to slowly rise as unemployment decreases and consumer confidence grows.

Still, 2011 was a tough year in residential real estate in the metro area, as foreclosures held prices down - especially in Milwaukee County - and there were many more homes on the market than buyers. Financing also remained difficult for some people interested in buying a home.

"I'll tell you, nobody is sorry 2011 is gone," said Mike Ruzicka, president of the Greater Milwaukee Association of Realtors.

Realtors sold 12,888 homes in 2011, compared with 12,367 in 2010, according Metro MLS Inc. data released Wednesday.

The average price of homes sold in Milwaukee County last year was $128,004, down almost 11% from 2010. The last time the average price was lower was in 2001, at $125,591. Sales increased in Milwaukee County by 3.4% last year.

In Waukesha County, the average sale price was $260,179, which is the lowest since an average of $256,244 was recorded eight years ago. Sales rose 6.6% in Waukesha County.

The average home sale price in Ozaukee and Washington counties was the lowest for a full year since 2003.

Ruzicka said the market appears to have bottomed in the third and fourth quarters of 2010 into the first quarter of 2011. After a generally soft year, it took an uncharacteristically large number of sales in the last two months of 2011 to push the annual sales figure past 2010, Ruzicka said. He attributed the strong finish to a rise in consumer confidence.

That theory was backed by Russell Kashian, a University of Wisconsin-Whitewater economics professor who tracks housing in the state. He said consumers who still are employed sense that they've weathered the economic downturn, restoring some confidence.

While he said more turbulence could lie ahead in the residential real estate market - and home-building will be slower to come back - it is beginning to recover and return to a pre-bubble, pre-recession climate.

"I think we're back to the era where people are buying a house primarily as a place to live and not primarily as an investment. That's a secondary thought," Kashian said.

Risk fading

Professor Morris A. Davis, a real estate expert with the University of Wisconsin-Madison School of Business, said the risk of prices falling further is fading, although a blowup of Europe's economy could slow a recovery.

"But my own view on this is there's not much downside risk to house prices," Davis said. "I'm not a financial planner or anything like that, but I've been encouraging people to buy homes. Most metrics I look at suggest that housing is fairly valued right now or even is undervalued."

Davis said he is forecasting "a few percent" growth per year in housing prices over the next 10 years as the economy heals and more people are employed.

Source: http://www.jsonline.com/business/area-home-sales-rose-42-last-year-but-prices-down-significantly-ur3oue7-137101808.html

Real estate experts optimistic for 2012

2012-01-11T22:10:00.000-08:00

CANTON — While home sales tumbled in December, Cherokee County’s real estate market fared better in 2011 than it did in 2010, and local experts are optimistic about the future.

There were 210 home sales last month, according to First Multiple Listing Service, a data services provider for real estate professionals. The total might increase, because not all sales are immediately reported.

That’s down from 234 reported in November, but higher than 208 reported in December 2010.

More homes were sold last year when compared to 2010, with 2,799 sales coming through in 2011 and only 2,348 reported at the close of 2010.

For Camille Gard of Prudential Georgia Realty, those numbers reflect recent data she’s reviewed. Gard said last year was better than 2010 and 2012 is poised to be better for Cherokee County.

“Everyone is excited about what’s coming,” she said.

The average sales price in December was $175,973, down from $180,323 in November and $202,694 in December 2010. Cherokee County had 277 new listings last month, down from 326 in November and 372 in December 2010.

Gard said the housing industry is coming back strong because builders have returned to complete or are starting subdivisions. She said she recently learned there were close to a million new families formed last year and, if that trend continues, the country will soon face pent up demand.

As far as local trends, Rick Steiner with Keller Williams Realty said he’s seeing a lot of first-time homebuyers taking advantage of the foreclosures and short sales on the market. The abundance of foreclosed properties and short sales on the market is something many real estate agents have to adjust their businesses to in order to survive, Steiner added.

He said his office was bombarded after the new year with calls from people inquiring about pricing and possibly selling their homes, which he said could be indicative of what’s to come. Steiner said he’s beginning to see signs of life in the economy as the unemployment rate recently declined slightly and builders are beginning to creep back into the housing market.

He noted those trends need to continue in order to make the predictions of a positive 2012 become a reality.

“I’m hoping for a positive 2012 for the real estate business,” he said.

Source: http://www.cherokeetribune.com/view/full_story/17082986/article-Real-estate-experts-optimistic-for-2012?instance=home_news_bullets

Real Estate numbers close year on a high note

2012-01-10T22:30:00.000-08:00

The Gold Pan City’s real estate market is holding it’s own as surrounding areas see increases.

Members of the BC Northern Real Estate Board (BCNREB) reported 4,456 property sales worth $951.6 million in 2011 through the Multiple Listing Service (MLS), up from last year’s 4,300 sales worth $867.3 million.

In Quesnel, 248 properties changed hands in 2011 through MLS, compared to 264 properties in 2010. The value of these properties was $42.1 million ($44.5 million in 2010).

The median value of the 106 single family homes sold in 2011 was $174,000. In addition, 33 parcels of vacant land, 44 homes on acreage, 23 manufactured homes in parks and a further 18 on land were reported sold in 2011. At year end there were 215 properties of all types available for purchase through MLS, down from 243 properties at the end of 2010.

In Williams Lake, 324 sales worth $65.5 million were reported through MLS in 2011,down from 361 sales worth $79 million the previous year. Half of the 132 single family homes sold in 2011 sold for less than $215,000. Twenty-six parcels of vacant land, 59 homes on acreage, 17 town homes, 33 manufactured homes in parks and a further 32 manufactured homes on land were also sold in 2011. At the end of 2011 there were 342 properties of all types available through MLS, down from 374 properties as of December 31, 2010.

In Prince George, 1,197 properties worth $272.1 million sold in 2011, compared with 1151 properties worth $245.3 million in 2010. At year end there were 527 properties of all types available through MLS in the city compared to 588 properties at the end of 2010.

In the area west of the by-pass, half of the 270 single family homes that sold, sold for less than $216,000. As well, 16 apartment units and 27 town homes changed hands in 2011. As of Dec. 31, there were 49 single family homes listed through MLS in this area of the city, compared to 49 at the same time last year.

East of the by-pass, 13 apartment units, 11 half duplexes and nine town homes sold in 2011. The 129 single family homes sold had a median value of $174,900. At the end of December, there were 57 single family homes available for sale through MLS in this area, compared with 42 at the end of 2010.

In the northern part of the city, commonly referred to as ‘the Hart’, 28 homes on acreage,23 manufactured homes in parks and a further 41 manufactured homes on land sold in 2011.

Of the 168 single family homes sold, half sold for less than $254,000. As of Dec. 31 there were 50 single family homes available through MLS in this area of the city compared with 47 at the end of 2010.

In the southwest sector 12 half duplexes, 17 town homes, 11 homes on acreage and 15 manufactured homes in parks sold in 2011. Half of the 248 single family homes sold in 2011 sold for less than $296,000. At year end there were 69 single family homes available for sale through MLS in the southwest sector, compared with 57 at the end of 2010.

“Notwithstanding a slow start in the first quarter of 2011 the northern B.C. real estate market ended the year on a positive note with the numbers of sales and average sales prices in the majority of communities up over 2010 and with the communities of Terrace, Kitimat, Houston, Smithers and the Peace River and Prince George particularly showing positive increases in both activity and average sale price,” board president Victor Prystay said.

“Listing inventory, on the other hand, is generally down throughout the region and with interest rates continuing at record lows it seems reasonable to expect the market to move into more positive territory in 2012, from what has been, generally speaking, a buyer’s market, to a more balanced, or perhaps even, a seller’s market.”

Source: http://www.quesnelobserver.com/news/137026068.html

Retail real estate poised to build on last year’s momentum

2012-01-09T22:53:00.000-08:00

The retail real estate world in metropolitan Kansas City began its return from the wreckage of the Great Recession last year, but it’s still a bumpy road, and there may be more casualties in 2012.

That’s the word from Lane4 Property Group, which recently issued its 2012 Kansas City Retail Report, an around-the-horn review of retail development in the area. The respected development firm said it was hard to pin down when things began turning around last year, but life did return to the market, at least in most areas.

“The recovery may still be tenuous and inconsistent, but it is certainly a welcome improvement,” Lane4 reported.

Still, don’t expect much in the way of new retail development to occur, particularly around the outer edges of the area, and there are some shopping centers in nonprime locations that will probably face foreclosure in 2012. No names were mentioned.

“Many retail projects are still in precarious condition — especially those with developers that bet on continued residential growth in outlying areas or those that are not anchored by a top-tier retailer,” according to Lane4.

The underlying theme is that for quality retail developments in good locations, leasing is picking up nicely.

“The trend most identified last year, a flight to quality, is continuing apace,” Lane4 reported.

The Country Club Plaza, which got a black eye with its ill-fated foray into office development, did quite well when it focused on its core interests. Lane4 said the venerable shopping center had a “banner leasing year” attracting desirable retail tenants, including H&M, Michael Kors, Kate Spade and Sur la Table.

The restaurant scene on the Plaza was sizzling too, with new tenants including Seasons 52, Coal Vines and Gram & Dun. Lane4, which has its offices in the Plaza, also predicted a good year ahead.

Here’s a summary of the other area categories:

• Northwest Kansas City: Healthy and stable, with prospects for two large-format retailers opening in the Missouri 152 corridor this year.

• Northeast Kansas City: One of the few areas with new development. Look for a large-format retailer near Interstate 35 and Missouri 152, and additional retailers coming to the Liberty Triangle.

• South Kansas City: Ward Parkway was boosted by landing Trader Joe’s. AMC is remodeling its movie complex. Look for a Marshalls HomeGoods at the center and new retailers to go up on the site of the demolished Dillard’s.

• Southeast trade area: Steady growth. Summit Fair reduced its vacancies, and a new grocery-anchored center will open in Belton.

• East Jackson County: Lots of relocations. The Independence Center mall continues to do well, and a major large-format retailer is expected next to the Bass Pro development.

• North Johnson County: Wal-Mart’s decision to locate in Mission Gateway jumpstarts development, and construction is under way at Mission Crossing. The former Circuit City center in Merriam may be redeveloped, and Oak Park Mall remains one of the area’s strongest retail hubs.

• South Johnson County: The bankrupt Corbin Park project at 135th Street and Metcalf Avenue was bought and renamed Aspen Square. The shopping area around 119th Street and Roe Avenue remains robust with leasing up at Park Place, and One Nineteen adds Trader Joe’s, Standard Style and other upscale tenants.

• Wyandotte County: Legends has financial struggles, but it completes its transformation to an outlet format with new tenants, including Polo and Saks Off 5th. Sam’s Club will open this year at the Plaza at the Speedway. Hollywood Casino opens next month, and the 39Rainbow retail development is going up near the University of Kansas Medical Center.

The report also listed taxable sales by county, with Johnson County leading the pack with $4.4 billion in sales through the first half of 2011, up 3.5 percent from the same period the previous year.

It was followed by Jackson County, $3.9 billion, up 1.7 percent; Clay, $1.2 billion, up 1.26 percent; Wyandotte, $874 million, up 3 percent; Platte, $673 million, up 1.7 percent; Douglas, $622 million, up 1.8 percent; Cass, $426 million, down 1.2 percent; Leavenworth, $247.8 million, up 2.2 percent; and Miami, $128.4 million, up 4.5 percent.

A few trends noted by Lane4 were the downsizing of what’s called the “big box” category of stores as Internet shopping continues to grow. Also on the Internet theme, retailers will need to provide more of a fun shopping experience and personalized service to compete as more and more shoppers go online.

Managers of retail developments also are going after other types of tenants to fill space, including restaurants, medical services, fitness clubs and educational users.

Lane4 concludes that this year will continue the slow and steady improvement of 2011.

“Deals may not be fun or lucrative, but at least they happen and will likely occur with more frequency,” the report said.

Source: http://www.kansascity.com/2012/01/09/3361762/retail-real-estate-poised-to-build.html

Real estate sales look promising on island

2012-01-08T22:36:00.000-08:00

BY LIZA STROUT - It started as a whisper, and over the last few months has gathered steam. Word on the street is that the island real estate market is recovering by leaps and bounds.

While 2011 sales numbers showed the Charlotte County market was up by 11 percent and Sarasota was up by 17 percent, Gasparilla Island is up by 57 percent.

“We are insulated from most market change here on the island,” said Olivia Jones of Parsley-Baldwin Realty. She also pointed out things have slowed considerably from the giddy highs that started the decade.

Brian Corcoran of The BLC Group, LLC, said, “It has certainly turned a corner in Boca Grande in the luxury market. 2009 was the worst year for real estate in recent memory. The financial meltdown affected people’s ability to spend. We began to pick up in 2010, and just finished a much improved 2011.”

The optimism is spread throughout most of the real estate community. According to Ralph DiLena, Jr., Boca Grande Real Estate has seen an upswing in business.

“We are off to a fantastic start into the new year,” he said. “We’ve had more interest in the last two months than in the previous six months combined. Offers are being accepted. Right now may be an excellent time to consider buying real estate and a strategic time to exit the market if your basis or opportunity costs are profitable.”

Not everyone is as sanguine about the term recovery. Becky Paterson, of Seale Family, Inc., remarked that, “Calling it a recovery may be premature. The market out here is so seasonal, until we see what happens in January and February, we really don’t show a trend. Most everything sold recently has been sold at a significant discount.”

Kevin Hyde of Michael Saunders & Co. said there has been a steady double-digit increase in demand for island real estate in the last three years. Island-wide in 2009, 36 properties sold for a combined $42.6 million. In 2010, 53 properties sold for $65.3 million. The numbers from last year are even better, with 93 properties selling for $111.7 million.

Hyde also said he sold two parcels of land on the north end of the island to one investor, and at least two others sold in late 2011.

“People see the value in land right now, and they have the opportunity to build on it for less than they would have in the past. They’re investing,” he said.

Gulf-to-Bay Sotheby’s had a wonderful year. Donna Moore, owner and broker, said of last year, “It was a great season for the first time in several years, so we were thrilled.”

As of December 20, 2011, there were 95 transactions on the island, and Gulf to Bay Sotheby’s International Realty was involved on one side or both in 55 of them. Buyers Resource, who acts exclusively as agents for those purchasing property, reports an increase in inquiries from people interested in buying an island home. According to Karen Hugger, who works with that company, the interest is from around the country, not any one particular region.

As a welcome close to 2011 and start to the New Year, there are currently four properties pending contract on the island. Hopefully by the end of February, we can call it a trend.

Source: http://www.bocabeacon.com/news/featured-news/4247-real-estate-sales-look-promising-on-island

Borneo Real Estate to showcase investment opportunities

2012-01-06T22:38:00.000-08:00

KUCHING: Borneo Real Estate is once again showcasing an opportunity for Malaysians to capture the wealth that China has to offer through its gateway, Hong Kong.

“Real estate investments have always been the best strategies for one to securely achieve great financial growth and increase wealth. That’s how some of the richest people on earth achieved their goals,” said Aubrey Chan, principal of Borneo Real Estate.

He explained that Borneo Real Estate was the marketeer for First Asia Holdings (HK) Ltd (First Asia) for its range of mainstream properties and property investment products in the Malaysian market.

Hong Kong had a major capitalist service economy characterised by low taxation, free trade and the Hong Kong dollar was the ninth most traded currency in the world remaining as the world’s freest economy, according to the Index of Economic Freedom since the inception of the index in 1995.

Despite the downturn, Hong Kong’s economic strengths, including a sound banking system, virtually no public debt, a strong legal system, ample foreign exchange reserves, rigorous anti-corruption measures and close ties with the mainland China, have enabled it to quickly respond to changing circumstances.

Borneo Real Estate in collaboration with property developer, First Asia is inviting all aspiring investors to join its Hong Kong property talk which is to be held at the RH Hotel Sibu on January 8 and 9 and in Kuching the following weekend.

The talk sessions would be held in Chinese and English on these two days at different times; 11am and 4pm for English, 2pm and 7pm for Mandarin on both dates.

Due to limited seating capacity, participants ware encouraged to secure their seats by calling or send a text to 016-8877829 (Eunice).

Source: http://www.theborneopost.com/2012/01/07/borneo-real-estate-to-showcase-investment-opportunities/

Real estate | Metro Vancouver price growth cooled in 2011: report

2012-01-05T22:39:00.000-08:00

Metro Vancouver's 2011 housing market cooled considerably after starting the year with a bang, according to a Real Estate Board of Greater Vancouver report released Wednesday.

"2011 started with very strong demand, especially in [Vancouver's] west side, Richmond and West Vancouver, but then it peaked in June and closed the year with greater balance between sellers' supply and buyers' demand," Greater Vancouver board president Rosario Setticasi said in an interview.

"[Prices] dropped about 1.5 per cent from June to the end of the year. But overall, the benchmark price for all residential properties increased 7.6 per cent for the year."

According to the report, nine municipalities saw double-digit increases in the benchmark price of a single-family detached home over the last 12 months, with the overall price for all residential properties rising to $621,674 between December 2010 and December 2011.

Although comparisons can change considerably on a month-to-month basis, little Port Moody ended the year with the largest increase in the benchmark price for a single detached home, a 34-per-cent rise from December 2010 to December 2011 to $933,000.

At the other end of the scale was Squamish, where the benchmark price for a single family home dropped 7.3 per cent to $458,000 over the same period.

For single detached homes, Metro Vancouver saw prices increase year-over-year by 11.2 per cent to $887,000, while Vancouver's west side rose 20.7 per cent to $1.99 million, West Vancouver, 15.8 per cent to $1.69 million, Richmond, 11 per cent to $1.1 million, and North Vancouver, 13.3 per cent to $978,000. Metro Vancouver apartments rose in price 3.7 per cent to $401,000.

The Greater Vancouver board's report concluded that total sales of all residential properties in 2011 reached 32,390, a 5.9-per-cent increase from the 30,595 sales recorded in 2010, and a 9.2-per-cent decrease from the 35,669 residential sales in 2009. Last year's home sale total was 6.3 per cent below the 10-year average for sales in the region.

Meanwhile, the Fraser Valley's real estate market in 2011 was below the 10-year average in property sales and above average in the number of new listings, according to the Fraser Valley Real Estate Board.

Fraser Valley board president Sukh Sidhu also said that there was a wide variation in pricing. "For example, in my community of Abbotsford, sales of single family homes dropped by almost seven per cent compared to 2010, pushing prices down slightly, while in south Surrey/White Rock sales increased year over year by 45 per cent," resulting in price increases.

The Fraser Valley board processed 15,529 sales in 2011 compared to 14,891 the previous year, while the number of new listings remained about the same - 31,592 in 2011 compared to 31,437 in 2010.

The board said that although 2011 ranks the third slowest year for sales since 2002, it was only 10 per cent less than the 10-year average of 17,210 sales.

In December, the benchmark price of a detached home in the Fraser Valley was $522,998, an increase of 3.3 per cent compared to $506,145 in December 2010.

The trend toward slower price growth is expected to continue in 2012 as more listings temper demand.

"We're expecting much less price growth this year compared to 2011," Robyn Adamache, senior market analyst, Metro Vancouver, Canada Mortgage and Housing Corp., said in an interview.

"We're calling for about a two-to three-per-cent increase in price growth in 2012, close to the rate of inflation."

Tsur Somerville, director, centre for urban economics and real estate, Sauder School of Business at the University of B.C., agreed. "My sense is that flat or little growth [in prices] is likely."

2012 will also be largely influenced by confidence levels in the global economy, and reduced levels of investment from China or Chinese immigrants, he said.

Source: http://www.vancouversun.com/business/Real+estate+Metro+Vancouver+price+growth+cooled+2011+report/5949870/story.html

New York Real Estate Still Flatlined

2012-01-04T22:16:00.000-08:00

Manhattan's real estate market ended last year with a whimper, not a bang, according to fourth-quarter reports released today by the city's biggest firms. The average sales price was $1.445 million, down 1.3 percent from the previous quarter and 2.5 percent lower than the same period in 2010, per Prudential Douglas Elliman's market survey. Median sales price remained virtually unchanged from 2010, rising a mere 1.2 percent to $855,000. This despite fewer closings — 2,011 transactions in the fourth quarter compared to 3,106 the previous quarter and 2,295 the year before.

Appraiser Jonathan Miller, who prepared the Elliman report, sees "the barrage of confusing and largely negative economic news" as the likely culprit for the sales dip, turning off buyers. A "steep decline" in condominium sales didn't help either, according to analysts at Brown Harris Stevens. In the fourth quarter of 2010, condos made up 46 percent of all transactions; in 2011, 40 percent. "Condos typically sell for more than co-ops and when they comprise a smaller share of sales, the overall average apartment price will be driven lower," explains the BHS report.

Still, condominium prices are rising. The median price for a unit is now $1.197 million, up 10 percent from last year, per the Corcoran Group. In fact, the average price per square foot for condominiums hit $1,242, a high unseen since the market soured in the late aughts.

And at least it's not taking sellers as long to close the deal: Real estate database firm Streeteasy.com found that properties waited an average of 149 days in the fourth quarter of 2010.

But what does it all mean? "We're still bouncing along the bottom," says Streeteasy.com's Sofia Song. "Buyers are going to need some strong incentives to buy in such a volatile economic climate."

Source: http://nymag.com/daily/intel/2012/01/new-york-real-estate-still-flatlined.html

Real Estate Prices Are Steady in Manhattan, but Sales Fall

2012-01-03T21:22:00.000-08:00

The Manhattan real estate market closed out 2011 with prices relatively flat, but sales volume for the fourth quarter was down by more than 12 percent from the previous year largely because of shrinking condominium inventory as fewer new developments came to market, according to reports that will be released by the city’s major brokerage firms on Wednesday.

The median fourth-quarter sales price was $855,000, down 1.2 percent from the same time in 2010, according to one report, from Prudential Douglas Elliman. The figure is far from the market’s peak in 2008, when the median was close to $1 million, but up from the bottom in 2009, when the median hovered around $800,000.

The number of sales, however, was only 2,011, a 12.4 percent drop from 2010 and a surprising 35.3 percent drop from the third quarter of 2011, according to Elliman’s report. “That’s a pretty sharp quarterly drop, and I don’t know if it’s a precursor to lower activity going forward,” said Jonathan J. Miller, the president of the appraisal firm Miller Samuel and the author of Elliman’s report.

Fourth-quarter sales volume typically drops off by about 9 percent from the third quarter, because of a slowdown during the holidays. But Mr. Miller said that the 35 percent decrease was probably “a byproduct of the last six months of global economic volatility, which translates into a pause until consumers figure out what it all means.”

Dottie Herman, the chief executive of Elliman, said the 35 percent drop may have been exaggerated because third-quarter sales volume was unusually high amid heavy interest from foreign buyers when the dollar was at its weakest. “But over all, prices and volume wasn’t that different from the previous year, and I think this year, in 2012, we’re probably going to have a lot more of the same,” she said.

Diane M. Ramirez, the president of Halstead Property, said she was not alarmed by the year-to-year decrease in sales because the 2010 figure had been inflated by a surge in sales in the last months of that year, as buyers rushed to make purchases before an anticipated increase in capital gains taxes. The capital gains tax rate had been scheduled to return to 20 percent from 15 percent in 2011, but Congress extended the lower rate just before it was to expire. “I think what we’re seeing is just the normal ebb and flow of the market,” she said.

Pamela Liebman, the chief executive of the Corcoran Group, said the drop in sales volume was largely propelled by a dip in the number of new developments coming to market. While co-op inventory remained stable, she said, condo inventory, at 3,466, decreased 11 percent from 2010.

While some areas, including parts of Harlem, still have new condo projects on the market, downtown neighborhoods like the West Village and Chelsea have extremely low inventory. “We’ve had a lot of clients hungry for great condos in the West Village, and we have had nothing to show them,” Ms. Liebman said.

A report by Streeteasy.com showed overall inventory at 13,147, down 5.9 percent from 2010. “I think inventory being down is actually a good thing, because it keeps prices from plummeting even more,” said Sofia Song, Streeteasy’s vice president for research. “It suggests that a lot of sellers are holding on to their properties to wait out the market.”

The reports also show that luxury sales of $3 million and up continued to be strong. At the super-high end, there were 23 sales with price tags of $20 million or more in 2011, the highest annual number since 2008, according to Ms. Liebman.

Hall Willkie, the president of Brown Harris Stevens, said luxury sales rebounded early in 2011 and held strong throughout the year. His firm registered three sales over $20 million in the last three months, and will soon record the record-breaking $88 million sale of a penthouse at 15 Central Park West.

At nearly $13,000 per square foot, Mr. Willkie said, “that price may prove to be a one-off and not a proxy for anything.” He said, though, that apartments at One 57, the Extell Development Company’s 90-story hotel and condominium tower across from Carnegie Hall, which is not scheduled to open until 2013, were selling for $10,000 per square foot.

“But even with all these extraordinary sales we’ve seen,” he said, “the high end, like the rest of the market, is still very price-sensitive. Buyers have to feel that prices are justified.”

Ms. Herman said she expected the bookends of the market, at the entry and luxury levels, to continue to do well. “But what’s getting killed is the middle market,” she said, “the average person who’s looking to trade up and trying to spend between $700,000 and $1.1 million.”

Because banks have tightened their lending restrictions so much, she said, many of those buyers “have no borrowing power, even if they have good, steady jobs.” Until financing loosens up, she said, many of those buyers will be unable to trade in their entry-level apartments for larger spaces.

Source: http://www.nytimes.com/2012/01/04/realestate/manhattan-real-estate-prices-are-steady-but-sales-drop.html

U.S. is top 2012 property investment pick

2012-01-02T22:31:00.000-08:00

NEW YORK - The United States will remain the top choice of most global commercial real estate investors in 2012, but the country has lost ground to Brazil which ranked No. 2 this year, according to a survey released Sunday.

While the United States offers the most stable and secure option in commercial real estate, investors said improvement in rent and occupancy growth and the repeal of a 1980 foreign investment tax would have the strongest impact on their investment decisions, according to the 20th annual survey of Association of Foreign Investors in Real Estate (AFIRE) members.

For about the past year or so, investors in U.S. commercial real estate have focused on gateway cities such as New York, Washington, Boston, San Francisco and Los Angeles, driving prices up and yields down.

Meanwhile commercial property in Brazil, with its bubbling economy and safer investment environment, has become a hot spot for global investors. Sao Paulo, Brazil's largest city, jumped to the fourth best city for real estate investment dollars in 2012, up from 26th place last year.

The United States is still very desirable and was second behind the UK in attracting cross border investment in 2011, according to Real Capital Analytics preliminary figures.

"The negative is it doesn't promise a whole lot of capital appreciation because the prime markets are already fully priced," AFIRE Chief Executive Officer James Fetgatter said. "By no means will Brazil replace the U.S., at least not in the forseeable future. Brazil is considered now a much safer place to invest and a place where you can get capital appreciation and good yield."

AFIRE'S survey respondents hold more than $874 billion of real estate globally, including $338 billion in the United States.

Sixty 60 percent of respondents said they plan to increase their investment in U.S. real estate in 2012, down from a record 72 percent last year, according to the 20th annual survey.

Some 42.2 percent said they believed the United States in 2012 would offer the best opportunity for the price of their commercial real estate investments to increase, down from 64.7 percent last year's survey.

The United States lost ground to Brazil, with 18.6 percent saying Brazil's property market offered the best growth opportunity for their investment dollars. That's up 14.2 percentage points, moving Brazil up to second place from fourth, and pushing China down to No. 3, according to the AFIRE survey.

Seventy percent of respondents picked one of the three countries as their favorite, while the remaining 30 percent had top choices from 13 other countries on five continents.

Respondents said they would invest more in U.S. commercial property if the fundamentals of rent and occupancy growth were stronger.

Another U.S. barrier respondents cited was the Foreign Investment in Real Property Tax Act (FIRPTA). The 1980 act, originally designed to protect farm property from foreign ownership, subjects foreign buyers to both their domestic and U.S. taxes when they sell their investment, unless their home country has a taxation treaty with the United States.

FIRPTA opponents have argued that the act unfairly penalizes foreign investors of real estate. Such double taxation does not apply if they buy U.S. stocks or bonds.

As for the top cities for foreign investment in 2012, New York remained No. 1. London moved up to No. 2 from No. 3, swapping ranks with Washington. Sao Paulo was fourth, and San Francisco moved up to No. 5 from No. 10 last year.

Europe's sovereign debt problems and looming recession pushed most of the countries there - except for a few such as Switzerland and Poland - off the map for real estate investors. Germany lost about half its support among respondents in terms of stability and price appreciation, according to the survey.

Emerging markets also seem to be getting more popular among potential investors. Respondents identified 25 countries they would consider for investment, up from 18 last year. Brazil topped the list, with China in second place, as each did last year. Turkey moved up to No. 3 from No. 7 last year. India and Vietnam each dropped down one spot, to No. 3 and No. 4 respectively. Appearing for the first time were Colombia, at No. 10, Hungary at No. 12, and Qatar at No. 17.

As for U.S. commercial real estate, respondents said that this year they would most likely invest in apartment buildings, the fourth consecutive year multifamily topped the list. Of all the types of U.S. commercial real estate, the multifamily sector has not only recovered from the post-2007 real estate slump but rents and occupancy are even stronger than before.

Warehouse and distribution centers ranked second, up from No. 5 last year. Office properties were third, up a notch from No. 4. Retail properties - shopping centers and malls - slipped to No. 4 from No. 2. Hotels ranked No. 5, down from No. 3 last year.

The survey was conducted in the fourth quarter by the James A. Graaskamp Center for Real Estate, Wisconsin School of Business.

Source: http://www.abs-cbnnews.com/global-filipino/world/01/01/12/us-top-2012-property-investment-pick

Australian house prices fall

2012-01-02T03:47:00.000-08:00

House prices in Australia’s eight capital cities slid 3.7 percent in the first 11 months of 2011, says a new report.

Brisbane led the decline, slumping 7 percent in the January-November period, followed by Melbourne, which posted a 5.7 percent retreat, according to figures from RP Data, a real estate researcher.

“The downside risk would come from global weakness affecting the Australian economy,” said David Cannington, a Melbourne-based economist at Australia & New Zealand Banking Group Ltd., with A$161 billion ($164 billion) of mortgages as of November. “The housing market will, broadly speaking, reflect the relative strength or weakness of the Australian economy.”

Home prices dropped 3.5 percent in November from a year earlier after falling 3.9 percent in October, the biggest slide since RP Data began keeping records 12 years ago. Brisbane had the biggest decline last month, down 7 percent, followed by Melbourne with 5.6 percent. The Reserve Bank of Australia cut interest rates for the second straight month on Dec. 6.

The anomalies in house prices across Australia are particularly marked in areas like Western Australia, which have seen soaring house prices on the back of the mining boom.

Want to know more about the cost of living in Australia ? Come to Down Under Live, taking place across the UK in February 2012.

Source: http://www.australiamagazine.co.uk/?p=1086

Xinyuan Real Estate Co., Ltd. Announces New Land Acquisition in Xuzhou

2011-12-27T23:03:00.000-08:00

BEIJING, Dec. 27, 2011 /PRNewswire-Asia/ -- Xinyuan Real Estate Co., Ltd. ("Xinyuan" or "the Company") (NYSE: XIN), a residential real estate developer with a focus on high growth, strategic Tier II and Tier III cities in China, today announced that it has acquired a parcel of land in Xuzhou, east China's Jiangsu Province. Xinyuan paid a total of RMB235 million (approximately US$37 million) for the land use rights for the parcel, which is located in Xuzhou and offers a total site area of approximately 45,000 square meters. The Company intends to develop high rise residential apartments for a total estimated gross floor area ("GFA") of approximately 119,000 square meters. The average apartment unit size will range between 70-130 square meters.

Mr. Yong Zhang, Xinyuan's Chairman and Chief Executive Officer said, "Xuzhou is an important transportation hub city in Jiangsu province as it is ideally situated between the eastern coastal, middle, and west development areas of China. Our newly acquired land parcel is adjacent to Xuzhou Xinyuan Colorful Garden, our first project in Xuzhou. Our first project in Xuzhou experienced a strong return on investment and we believe our newest land acquisition in the region can be as successful as our first project."

About Xinyuan Real Estate Co., Ltd.

Xinyuan Real Estate Co., Ltd. ("Xinyuan") (NYSE: XIN) is a developer of large scale, high quality residential real estate projects aimed at providing middle-income consumers with a comfortable and convenient community lifestyle. Xinyuan focuses on China's Tier II cities, characterized as larger, more developed urban areas with above average GDP and population growth rates. Xinyuan has expanded its network to cover a total population of over 44.7 million people in seven strategically selected Tier II cities, comprising Hefei, Jinan, Kunshan, Suzhou, Zhengzhou, Xuzhou and Chengdu. Xinyuan is the first real estate developer from China to be listed on the New York Stock Exchange. For more information, please visit http://www.xyre.com.

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made under the ''safe harbor'' provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Statements that are not historical facts, including statements concerning our beliefs, forecasts, estimates and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including, but not limited to, the risk that: our financing costs are subject to changes in interest rates; our results of operations may fluctuate from period to period; the recognition of our real estate revenue and costs relies on our estimation of total project sales value and costs; we may be unable to acquire desired development sales at commercially reasonable costs; increases in the price of raw materials may increase our cost of sales and reduce our earnings; we are heavily dependent on the performance of the residential property market in China, which is at a relatively early development stage; PRC economic, political and social conditions as well as government policies can affect our business; the market price of our ADSs may be volatile, and other risks outlined in our public filings with the Securities and Exchange Commission, including our annual report on Form 20-F for the year ended December 31, 2010. All information provided in this press release is as of December 27, 2011. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

For more information, please contact:

In China:

Mr. Tom Gurnee

Chief Financial Officer

Tel: +86 (10) 8588-9390

Email: tom.gurnee@xyre.com

Ms. Helen Zhang

Director of Investor Relations

Tel: +86 (10) 8588-9255

Email: yuan.z@xyre.com

ICR, LLC

In U.S.: +1-646-308-1472

In China: +86 (10) 6583-7511

Email: William.zima@icrinc.com

SOURCE Xinyuan Real Estate Co., Ltd.

Source: http://www.prnewswire.com/news-releases/xinyuan-real-estate-co-ltd-announces-new-land-acquisition-in-xuzhou-136254183.html

Park City Utah's Real Estate Market Areas

2011-12-26T22:03:00.000-08:00

Real estate sales in Park City, UT for 2011 are up nearly 15 percent for the year versus 2010.

Park City, Utah has 21 real estate neighborhoods which make up the greater Park City area. Sales volume for single family homes and condominiums in these areas are showing strong increases versus last year and some areas currently have very low inventory levels.

The four hottest real estate market areas in Park City are in the Snyderville Basin area near Canyons Resort. The unit sales for 2011 versus the current for sale inventories for the Sun Peak/Bear Hollow, Silver Springs, Trailside Park and Kimball Junction areas all correlate to less than six month's inventory.

The current supply of single family homes compared to the sales in 2011 (absorption rate) of Park City's 21 areas correlate to less than one year's inventory. The numbers are skewed slightly toward lower priced homes in Park City as inventory levels of homes under $500K are at less than 8 months' supply while homes ranging from $500K-$1M show a 9 month supply. Inventory levels for homes between $1M and $2M is about one year while the supply of homes priced more than $2M would take more than 3 years to sell at current sales rates. Areas that have an abundance of homes listed for sale at more than $2M which have a multi-year supply include Empire Pass, The Colony, Glenwild, and Deer Crest. Lower Deer Valley also has years' worth of single family homes for sale given the current sales rates. Areas with absorption rates less than one year (in addition to the four mentioned as the hottest areas) include Park Meadows, Upper Deer Valley, Prospector, Pinebrook and Jeremy Ranch.

Condominium sales in Park City were strongest for prices below $500K with nearly 200 sales being between $250K and $500K. Condominiums priced below $250K made up the second strongest price range with over 150 sales. The absorption rate (current supply divided by average monthly sales) for condominiums priced between $500K and $1M is more than 2 years while the rate for condominiums between one and two million dollars approaches a 3 year supply. Neighborhoods with a relatively tight supply of condominiums include Park Meadows, Canyons Resort, and Prospector. Kimball Junction, Bear Hollow, Jeremy Ranch and Pinebrook all have less than 6 months' worth of supply at this years' sales rate.

There are some areas of the Park City Real Estate Market that favor buyers, while others may be starting to favor sellers. For an expert analysis of the Park City realty area or price range that matters most to you contact YouInParkCity.com at (888)968-4672.

Source: http://www.utahbusiness.com/issues/articles/11880/2011/12/park_city_utah__s_real_estate_market_areas

Distressed commercial real estate in retreat?

2011-12-25T21:55:00.000-08:00

Distressed commercial real estate in the United States — including properties in default, foreclosure or taken back by lenders — totaled $171.6 billion in October 2011. That is a dip from the recent past.

The level of distress began to plateau when it reached $191.5 billion in March 2010, and it has stayed in the $175 billion to $190 billion range until now, according to data from Real Capital Analytics.

We think those levels should continue to come down in a meaningful way in 2012 and beyond, assuming interest rates cooperate and economic expansion accelerates. The real test of the distress plateau is likely to be seen in 2012 and 2013, when about $300 billion in loans comes due each year.

Nationally, the office sector represents the largest share of distressed commercial real estate at $41.9 billion. That is $5.6 billion less, or 11.8 percent, since the peak in October 2010. Apartments have the second-highest level of distress, with $35.6 billion in troubled loans — a $1.8 billion (4.8 percent) drop since October 2010.

Land and other property types have the third-highest level of distress with $29.8 billion in distressed assets, a decline of $3.4 billion, followed by retail with distressed assets at $28.6 billion, an increase of $2.1 billion or (7.9 percent).

Hotels dropped from second place in October 2010 to fifth currently, falling $14.1 billion (36.8 percent) to $24.2 billion. Industrial property has by far the lowest volume of distressed assets but its total has been rising since October 2010. At that time there was $8.6 billion in distressed industrial assets; currently there is $11.6 billion of distress, an increase of 34.9 percent.

Stressed real estate: where Washington ranks

While the volume of distressed commercial real estate properties is significant, also consider the looming volume of stressed property. These properties have characteristics of concern in the short term — maturing loans, bankrupt tenants, underperformance, financially troubled owners, or other significant obstacles that could potentially lead to distress in the future.

Manhattan has the highest total volume of distress with $11.8 billion, followed by L.A.-Orange County with $10.0 billion. South Florida has $971 in distressed property value per capita, the largest amount per capita after Manhattan, which has $2,388 per capita. Houston has the lowest amount among the markets we track at $111 per capita.

Among the 10 markets we track, the Washington area has the fourth-lowest level overall of distressed assets (excluding stressed) at $1.4 billion, while Baltimore has the lowest, at $330 million. But stressed assets are much higher in Washington at $3.1 billion, fourth-highest among the 10 surveyed cities. Distressed real estate per capita is $253 per person in the Washington area, fourth-lowest among the 10 markets, while Baltimore has $121 per capita which is the second-lowest of the 10 cities surveyed.

Mike Donnelly is a senior associate at Delta Associates. Staff at Delta Associates contributed to this article. For more information, please visit www.deltaassociates.com.

Source: http://www.washingtonpost.com/business/capitalbusiness/distressed-commercial-real-estate-in-retreat/2011/12/19/gIQAO3YUHP_story.html

Real estate | Housing funds to help homeless renewed

2011-12-23T20:52:00.000-08:00

Several local agencies and housing projects will continue to serve local homeless residents with renewed funding from the U.S. Department of Housing and Urban Development, the agency announced this week.

HUD awarded a total of about $7.38 million to projects in South Carolina to ensure that the housing and services that support the homeless will continue operating next year, according to a HUD statement.

The Myrtle Beach/Sumter City and County area received about $1.19 million. The Myrtle Beach Housing Authority Shelter Plus Care program, which provides housing and support services on a long-term basis for homeless people with disabilities and their families, received about $215,000. Several local affordable housing developments, which rely on federal funding for support staff, including Alliance Inn Apartments and Balsam Place Apartments also received renewed funding.

HUD is renewing the funding to prevent any interruption of federal funds and will give money to new projects early in 2012, according to the statement.

“The grants we’re awarding today will literally keep the doors of our shelters open and will help those on the front lines of ending homelessness do what they do best,” HUD Southeast Region, Regional Administrator Ed Jennings, Jr. said in a statement. “It’s incredible that as we work to recover from the greatest economic decline since the Great Depression, the total number of homeless Americans is declining, in large part because of these funds.

” HUD’s 2011 estimate of the homeless population was down 2.1 percent to 636,000 people, according to a county of about 3,000 cities on one night in January of last year.

The grants awarded this week go to efforts that provide permanent or transitional housing for homeless people and provide services including job training, health care, mental health counseling, substance abuse treatment and child care.

Local Realtor gains national recognition

Myrtle Beach Realtor Blake Sloan was named one of Forbes Magazines “30 under 30” in real estate.

Sloan, 28, the owner of The Sloan Realty Group and founder of The International Association of Real Estate Experts, was selected by a panel of industry experts.

In choosing the top 30 under 30, Forbes asked industry experts and Forbes readers several questions, including “Who is reinventing the world? Who should you hire today? Who will you be working for in 20 years? Who, in short, under the age of 30, matters?,” according to the magazines website.

Sloan, who grew up in the Myrtle Beach area and comes from a family of Realtors, was also named one of the National Association of Realtors “30 under 30” earlier this year.

Sloan was thrilled and a bit surprised to find out he had been chosen for the Forbes recognition, but wants it to be an opportunity to get more exposure for his International Association of Real Estate Experts, he said.

In August Sloan launched the association, which links top Realtors around the world to share ideas, technology and tools to spur innovation in the real estate industry, Sloan said. The association also offers education and a Certified Real Estate Expert Designation, so buyers and sellers can more easier identify well-informed Realtors, he said.

Source: http://www.thesunnews.com/2011/12/23/2565507/real-estate-housing-funds-to-help.html

Existing home sales to be revised lower

2011-12-22T21:46:00.000-08:00

NEW YORK (CNNMoney) -- If you thought the U.S. housing market couldn't get much worse, think again.

Far fewer homes have been sold over the past five years than previously estimated, the National Association of Realtors said Tuesday.

NAR said it plans to downwardly revise sales of previously-owned homes going back to 2007 during the release of its next existing home sales report on Dec. 21.

NAR's existing home sales numbers, released monthly, are a closely followed gauge of the health of the housing market.

While NAR hasn't revealed exactly how big the revision to home sales will be, the agency's chief economist Lawrence Yun said the decrease will be "meaningful."

"For the real estate business, this means the housing market's downturn was deeper than what was initially thought," Yun said.

Yun said the database NAR uses to track existing home sales, the Multiple Listing Service (MLS), has led the real estate agency to over-count existing home sales for several reasons.

The MLS database only includes home sales listed by realtors, and excludes homes listed by owners, providing a very narrow view of the market. And because more people are using realtors to list their homes instead of selling them independently, realtor-listed sales numbers have become artificially inflated, said Yun.

In addition, some of the assumptions NAR used in calculating its data have become outdated, since they were based on 2000 Census data.

First-time homebuyers guide

The MLS has also been expanding its geographic coverage, so it may have appeared that there were more home sales simply because data from new areas were starting to show up. Also because of this geographic expansion, the system has been double-counting sales of some homes that can be considered part of multiple regions.

"Colorado Springs has their own database, but because the Denver market is nearby they may also list that home in the Denver database, so when the home gets sold, both Denver and Colorado Springs will say sales rose -- so that's genuine double-counting," said Yun.

Yun said NAR realized this upward "shift" in data during its most recent re-benchmarking process this year. With the help of the government, economists and other real estate groups, NAR has now taken these factors into account and will issue revised numbers on Dec. 21 at 10 a.m.

"There are multifaceted reasons why things were drifting upward in our database," said Yun. "We have tried to adjust for all these factors so that we have a better understanding of total home sales in America."

Yun emphasized that the revisions will have no impact on consumers because median home price data will not be revised

Source: http://money.cnn.com/2011/12/13/real_estate/home_sales_revision/index.htm

Russian tycoon to invest $1 bn in US real estate

2011-12-21T21:03:00.000-08:00

MOSCOW: Russian billionaire Mikhail Fridman, the owner of financial conglomerate Alfa-Group, is set to invest up to $1 billion in properties on the east coast of the US,.

Fridman is launching a real-estate fund together with New York-based property developer and manager Rosen Partners to focus on distressed properties from Boston to Miami, in the latest example of a deep-pocketed foreigner investing funds in the US real-estate market, a paper said.

Russian tycoons consider US real estate a relatively safe haven, especially at a time of political uncertainty in Russia triggered by street protests over the alleged mass fraud at Dec 4 parliamentary elections and the forthcoming presidential poll in Russia next year.

"It's obvious that in Russia there is some risk for political or economic volatility. The American market is the most well-regulated and liquid market in the world. It has the best protection for investor rights," the paper quoted Fridman as saying.

Source: http://economictimes.indiatimes.com/news/international-business/russian-tycoon-to-invest-1-bn-in-us-real-estate/articleshow/11196254.cms

Investors still high on commercial real estate

2011-12-20T22:34:00.001-08:00

The results of an annual survey on commercial real estate investment say investors remain positive about the market, in spite of market turbulence, the economy and political headwinds.

The National Real Estate Investor magazine and Marcus & Millichap Real Estate Investment Services conducted its annual Investor Sentiment Survey in October, and the results just tabulated for the third quarter of 2011 match those in 2006.

The latest results show only a slight decline in investor sentiment from second quarter 2011, the highest level since the survey started in 2004.

"Much like the economic data that we have seen come out over the past month, the survey data shows a pretty high degree of resilience," says Hessam Nadji, a senior vice president and managing director at Marcus & Millichap in Calabasas, Calif.

"There is no sense of panic reflected in the economic data or this survey," adds Nadji.

The survey found that 30 percent of those replying strongly agreed with this statement: "Commercial real estate offers favorable returns relative to other investment classes."

Approximately 20 percent strongly agreed with the statement, "We have an abundance of capital ready to invest."

On the other side, 71 percent of the responders disagreed with this statement: "It would be better to invest in the stock market given the recent correction."

Only 8 percent agreed that it would be better to invest in the stock market. The rest had no opinion.

The survey summary noted that job growth in the third quarter of 2011 beat expectations, with 241,000 private sector jobs added in September and October.

Retail sales, excluding auto and gas, also beat Q3 expectations with a year-over-year increase of 6.1 percent in October, according to the U.S. Department of Commerce.

"Collectively, what this is showing us is that the economy is not growing very fast, but there is confidence and reconfirmation that both the economy and commercial real estate have regained solid footing," says Nadji.

Opinions are split on whether commercial real estate prices have hit bottom or still have further erosion ahead. Overall, 45 percent of respondents believe values have not yet hit bottom, while 38 percent agree that values have reached their low point. The remaining 17 percent are either on the fence or have no answer.

Respondents were slightly more optimistic on occupancies, with 42 percent stating that commercial property occupancies have hit bottom.

Apartments continued to distance themselves from the rest of the commercial real estate pack, the survey said, well ahead of hotels, mixed-use, industrial, retail and office, respectively.

Apartments have benefited from drivers that are unique to the sector, including a decline in home ownership and strong renter demographics.

The net absorption of apartments during the third quarter totaled 37,223 units, which helped to drop vacancies to 5.6 percent — a 1.5 percent improvement compared to third quarter 2010. Rents rose 2.4 percent to an average of $975, according to Marcus & Millichap.

Overall, 63 percent of apartment investors believe now is the time to buy more. An even larger percentage, 68 percent, expects apartment values to increase over the next 12 months.

U.S. retail vacancies have improved a slight 20 basis points over the past year to reach 10 percent as of the third quarter.

At the same time, effective rents have slipped a further 0.2 percent to average $15.91 per square foot, according to Marcus & Millichap.

Industrial and office owners are slightly more pessimistic in their views of these property types compared to the second quarter survey. More than half of industrial owners, 56 percent, expect industrial values to remain the same over the next 12 months, with 34 percent anticipating an increase and 9 percent predicting a further decline.

That response is more positive compared to a year ago when 29 percent of respondents expected values to rise.

* * * * *

Even modest levels of growth will be enough to continue the improvement in occupancies across all property types, but we're still in for a slow recovery.

"We added 1.8 million private sector jobs in the past year," Nadji reported. "That is the key reason occupancies have stabilized and are beginning to improve."

Invitations to participate in the survey were emailed in October to public and private investors and developers of commercial real estate.

Recipients of the survey included Marcus & Millichap clients as well as subscribers of National Real Estate Investor and Retail Traffic selected from commercial real estate investor, pension fund and developer business subscribers who provided their email addresses.

The majority of respondents are: private investors, 36 percent; developers, 17 percent; and private partnerships, 16 percent. They have an average of $40.4 million invested.

Source: http://www2.hernandotoday.com/business/hernando-news/2011/dec/21/hanewso5-investors-still-high-on-commercial-real-e-ar-337031/