Showing posts with label Residential Real Estate. Show all posts
Showing posts with label Residential Real Estate. Show all posts

Monday, 28 January 2013

Falls Church Real Estate Assessments Up 2.9% Overall for 2013, City Hall Says

The total taxable assessed value for all properties in the City of Falls Church as of Jan. 1, 2013, is $3,324,120,300 ($3.3 billion), a 2.9 percent increase from January 1, 2012, a press release from City Hall released late this afternoon states. The City plans to mail assessments for 2013 in February, so property owners should receive the notices on or after Tuesday, Feb. 12. Updated assessment information will be posted on the City website Monday, Feb. 11. Individual assessment information will not be available until after the mailing.

According to today’s release, overall residential real estate values increased 3.1 percent over the last year. Single family home values increased by 3.5 percent, townhomes increased by 3.6 percent, and residential condominiums had varying changes.

Overall commercial property values increased 1.6 percent since January 2012. The real estate value of multi-family apartments increased 5 percent, large office buildings are up 0.2 percent and large retail properties are up 3.9 percent. The value of City hotels remained flat.

As set forth in the Virginia Constitution, real estate is assessed at 100 percent of fair market value. The City’s Office of Real Estate Assessment calculates property value annually using mass appraisal techniques that are standard in the real estate assessment industry.

According to the City, the forthcoming notice of assessment is an appraisal of the fair market value of the property; it is not a tax bill. Property tax payments will be due in two installments on June 5 and Dec. 5; property owners will receive bills prior to these dates.

The real estate tax rate will be determined on April 22, 2013, when the Falls Church City Council adopts the Fiscal Year 2014 Operating Budget and Capital Improvements Program and sets the tax rate. Public hearings on the Fiscal Year 2014 Proposed Operating Budget will be held on March 25, April 8, and April 22 at 7:30 p.m. in Council Chambers (300 Park Ave.). To see the complete budget schedule, visit www.fallschurchva.gov/Budget.

While individual assessments will be mailed in February, if after evaluating the assessment, homeowners questioning if their assessment is correct are advised to ask the question, “Would my home sell for the assessed value if I put it on the market?” If the answer is “yes,” the assessment is probably accurate. If the answer is “no,” contact the Office of Real Estate Assessment at 703-248-5022 (TTY 711).

Deadlines for assessment appeals are Friday, March 15, 2013, for an Office of Real Estate Assessment review and Friday, July 5, 2013 for a Board of Equalization review. More information about the assessment review process is available online at www.fallschurchva.gov/AssessmentProcess.

For the original post visit: http://fcnp.com/2013/01/28/falls-church-real-estate-assessments-up-2-9-overall-for-2013-city-hall-says/

Friday, 13 July 2012

‘Canadian commercial real estate is primed for growth,’ TD economist says

Forget the residential market, maybe it’s time we started focusing on how strong Canada’s commercial real estate market has been, says Sonya Gulati, an economist with TD Bank.

“The commercial side of the market has recorded quite a comeback from the troughs posted in the early part of the recovery,” said Ms. Gulati in a report.

The economist notes $21-billion in commercial real estate assets sold last year, up from $10-billion in 2009. She says the short supply of projects coupled with demand has caused most regional markets to tighten over the past 12-18 months.

“The tighter conditions would lend itself to a new round of projects. We are already seeing development intentions materialize — there are renovation plans in major shopping mall centres across the country and there are an elevated number of new office towers being built,” says Ms. Gulati.

Toronto is expected to add four million square of office space over the next three to four years and there should be more to come due to steady economic gains in Canada that, combined with low interest rates, have combated global financial uncertainty.

“Thus, after a modest tightening for much of 2012, we forecast that Canadian commercial real estate is primed for growth,” says Ms. Gulati.

She says the “wild card” for the second half of 2012 will be consumer and business confidence in the face of the risk-filled economic climate.

“With demand elevated post-recession and many developers waiting to see if global risks abate, most property classes (office, retail and industrial) remain fairly tight. To help ease this pressure, we anticipate a new construction cycle will take place over 2013-14,” she says.

Source: http://business.financialpost.com/2012/07/12/canadian-commercial-real-estate-is-primed-for-growth-td-economist-says/

Tuesday, 10 July 2012

Canada’s home real estate is at ‘tipping point’

TORONTO The latest Royal LePage report on Canada’s home sales says prices generally went up in the second quarter and will likely rise further in some areas, such as Toronto and Winnipeg.

But the report suggests Canada’s residential real-estate market appears to be at a tipping point, with some areas likely too expensive for buyers at the current levels.

The national average prices for one-storey bungalows, two-storey detached homes and condominiums all went up in the April to June quarter.

The national average price for bungalows was $376,311, up from $356,625 in the same quarter of 2011 and $356,306 in the first quarter of 2012.

The national average price for two-storey detached homes was $408,423, up from $390,163 a year-earlier and $398,282 in the first quarter of 2012.

The national average price for condos was $245,825, up from $238,064 in the second quarter of 2011 and $243,153 in the first three months of this year.

Most of the major cities tracked by Royal LePage showed increases from the first quarter of 2012 and the second-quarter of 2011.

In Hamilton, the survey showed prices increased for bungalows and standard two-storey houses alike in all of the city’s neighbourhoods, except the east end.

The study reported a bungalow on the Mountain rose 9.1 per cent to $253,300. In West Hamilton that style rose 3.5 per cent to $246,100 and in the central area it rose 11.9 per cent to $163,300. In the east end, however, bungalows dropped 3.6 per cent to $194,000.

Standard two-storey homes were up across the city: 8 per cent to $363,400 on the Mountain; up 23.8 per cent to $353,400 in the west end, 16.1 per cent to $253,900 in the east end and up 22.2 per cent to $176,600 in the central area.

Nationally, there were a few exceptions scattered across the country, however, with some types of homes in some cities showing lower local average selling prices.

“Confidence in Canada’s real estate market is sound, but home prices cannot grow faster than salaries and the underlying economy indefinitely,” said Phil Soper, the president and chief executive of Royal LePage Real Estate.

“Some regions have reached or perhaps even exceeded the current upper level of price resistance as buyers have embraced an era of historically low mortgage rates.”

He said that changes to mortgage rules introduced by Finance Minister Jim Flaherty over the past four years will keep some people on the sidelines, particularly first-time buyers who account for up to half of the transactions.

Flaherty’s latest changes were announced last month and went into effect on Monday.

“The cumulative impact of these new regulations has created a significantly higher hurdle for young buyers seeking their first home and comes at a time when the market was slowing of its own accord. The timing of this intervention was unfortunate,” Soper said.

Source: http://www.thespec.com/news/business/article/758400--canada-s-home-real-estate-is-at-tipping-point

Tuesday, 29 May 2012

Locals reap real estate benefits

As interstate investors are seeing the opportunities in Whyalla, local resident, Emilie Zimmerman is getting in on the action with two Whyalla properties under her belt.

Ms Zimmerman, and her partner Kieran Patterson purchased their first property in 2005.

"It was half a Housing Trust and we were living there for about six years and did it all up," she said.

After catching the investment bug and wanting something bigger, Emilie and Kieran rented their first property out and purchased their second house where they are currently living today.

"My cousin was actually working in a real estate place and he kept bugging us about it, 'just come and look, I think it would be great for you'," Emilie said.

"We always planned it [buying another property and renting out their existing one] but we weren't actually looking just at the time.

"But then I said, 'come on we'll go have a look.'

"Had a look through it, fell in love with it, kept an eye out, but at the time there wasn't much to choose from on the market and towards the end we just said, 'yep let's do it'."

Two years later and with two properties, they both enjoy living in the Whyalla Norrie area.

"I've always lived in it as far as I can remember but it's good, we're around a few older people, so it's more relaxing and safe," Emilie said.

"I feel like I can walk around the block and everything's fine.

"Everyone's friendly, if you see them in the front yard they say hello.

"It's a comfort zone for me and that's important.

"The comfort zone of knowing so many people after living here for so many years and just the size of it, that's got to mean something because if you do go to a city it's totally different."

With so much advice and information out there regarding buying and investing in properties it is important to do your research first,

"I'd say watch the markets because of all the mining boom going around, but when this boom finally does happen; watch out because so many people are going to miss out and so many new employees are going to be here looking for rentals, and they're all going to miss out," Emilie said.

"But if someone's looking into it, do your research, go from there and be careful what real estate company you go through for management."

As Whyalla's housing demand increases and with interstate and locals also choosing to purchase investment properties in the town, 'you don't know till you take the jump, I wouldn't take it back', Emilie advised.

Source: http://www.whyallanewsonline.com.au/news/local/news/general/locals-reap-real-estate-benefits/2572512.aspx

Friday, 18 May 2012

'Extras' now offered in sale of Hepburn estate

Usually, when a property doesn't sell after a year, the owner might consider dropping the price.

But the owners of Katharine Hepburn's seaside estate in Old Saybrook are actually raising it by $2 million to $30 million. But wait until you see the "extras" that they now are throwing in: a 2,750-square-foot guest house with three bedrooms that will be built this fall to the east of the main house - the beginnings of a family compound.

There also is the potential for a third house on the property to the west of the main house.

Frank J. Sciame, a Manhattan-based developer and his wife, Barbara, purchased the Hepburn estate in the exclusive Fenwick enclave after the actress' death in 2003 and completed a top-to-bottom, multimillion dollar renovation. They also secured approval to subdivide the 31/2-acre property into three lots.

The plans were always there to build. The property, however, was first listed as the 8,300-square-foot main house and two undeveloped lots for $28 million. The main house could also be purchased by itself for $18 million.

Although there was interest in the property, no buyers emerged since it was listed in June of last year.

John T. Randolph, executive vice president of Sciame Development, said the construction of the gatehouse would be an absolute plus for marketing the property. Fenwick zoning does not allow guest houses on a single lot property.

"This will differentiate this estate from other properties," Randolph said. "A compound estate is something that would be more appealing and have more value."

Construction can't begin until the fall because Fenwick zoning does not permit building during the summer months.

Randolph said Sciame is pursuing approvals to construct a house on the lot to the west of the main house.

But if you want the property for $30 million, you'd better act before there are firm plans for the third lot. The price will go up, but Randolph said he couldn't yet say by how much.

Hepburn built the Fenwick summer home in 1939 a year after a hurricane leveled an earlier summer house on the property. She spent weekends there for decades and finally retired there until her death at age 96.

The Sciames bought the property in 2004 for $6 million, half the original asking price. They had at first planned to renovate and sell the house, but, according to published reports, the Sciames' children liked to stay there so the Sciames held onto the house for longer than first expected.

Earlier this year, rumors swirled that the first family might want to buy the estate, but the White House quickly moved to squelch the speculation.

Colette Harron, of William Pitt Sotheby's International in Essex, has the listing.

Source: http://www.bradenton.com/2012/05/18/4044398/extras-now-offered-in-sale-of.html

Monday, 14 May 2012

Real Estate Prospects in Russia Promising

The Russian real estate market was hit hard by the global economic crisis between 2008 and 2010. Growth has since returned to the market and looks set to continue, although global developments and local bureaucratic issues could create problems.

Late in 2007, many investors in Russia believed that the country was immune to what was considered "an American problem" with subprime mortgages. The breadth and depth of the global financial crisis that followed led people to become wiser, or at least more sensitive, to uncertainty elsewhere in the international community and its global effects. Europe's sovereign debt crisis and high levels of unemployment, production issues in the Far East, and continuing political unrest in Middle Eastern nations and their neighbors still feature in the media every day. There is little consensus on how to resolve these issues, although each of them affects the Russian real estate market to a certain degree.

Historically, one of the most significant global factors to influence Russian economic confidence has been the price of oil. While real estate is not quite so volatile, there is a good correlation between oil price movements and real estate rental rates.

Clients of Deloitte are certainly showing greater confidence in real estate following the market's decline between 2008 and 2010. The number of commercial real estate transactions in 2011 reached $8.1 billion, comfortably overtaking pre-crisis levels. The often quoted "prime rental rate" in the office sector has increased to $1,200 per square meter per year (from the low of about $750 in 2009). Foreign investment is also increasing and financing is more readily available, although development financing is still challenging to get. The availability of funding is particularly sensitive to developments in Europe as Russian banks rely heavily on eurobonds and European syndicated loans.

The outlook for the real estate market in Russia is not only shaped by global factors, but by local considerations as well. For example, the bureaucratic process for acquiring a construction permit in Russia is much longer than in other countries internationally. According to data from the World Bank's "Doing Business 2012" publication, the Russian process for obtaining building permission comprises 51 procedures and lasts for 423 days. In comparison, the same process in the United States is composed of only 13 procedures and takes just 26 days to complete.

Making bureaucracy efficient in real estate remains an important challenge for Russia, and developers are actively seeking a simplification of the planning permission process. It remains to be seen how quickly matters will improve in Russia overall, although Tatarstan is a good example of a region where real progress is being made. If Russia makes the bureaucratic process quicker and easier, it will be hugely beneficial for the country: The market will become more attractive to potential investors, there will be more entrants into the market, and construction costs will fall. So what are the prospects for the Russian market over the next few years? The spending power and confidence of investors and everyday consumers will ultimately decide. If mortgages become more accessible and consumer incomes do not decrease, demand for apartments will certainly increase. If shop owners see consumers maintaining their spending patterns, the growth in the number of rentals will continue and the shopping center development projects that are currently frozen will "thaw." On the other hand, office managers who are preparing their next move are likely to be very wary of global trends and will act more cautiously. Their attitudes may soon change for the better, though.

Despite global issues and bureaucratic difficulties, market fundamentals have not changed. There is a shortage of high-quality real estate in Russia, so the prospects for its development remain good, and growth has returned to the real estate market already. There is still room for improvement, and factors beyond the nation's control may affect its growth, but the prospects for the Russian real estate market are promising nonetheless.

Source: http://www.themoscowtimes.com/business/business_for_business/article/real-estate-prospects-in-russia-promising/458351.html

Friday, 11 May 2012

How to Build a Real Estate Portfolio

With property prices currently sagging, more and more investors are looking towards real estate as a smart addition to an investment portfolio. Certainly there is money to be made in property, but there is also a great deal of risk involved. Education and experience are the keys to navigating the often-hazardous property market. Here's a quick guide to help you build up the right property portfolio.

Why should you invest?
Property investment carries with it numerous advantages for investors. According to broker and President of Equity First Realty, Ben Yonge, the current down market is the perfect time to capitalize in the property market.

"Real estate prices are so extremely low. Buying an undervalued or distressed piece of property usually means that it can be 'cash flowed' with a nice annual yield if the right tenants are placed," he explains. "Prices are already on the rise so holding cash-flowing properties for the next three to five years should mean substantial gains in appreciation."

Preparing your finances
Gaining the correct financing is often the key to building a great property portfolio. It's always wise to arrange financing before looking at your first property, to avoid losing out to other buyers who may have already secured financing. Many lenders will demand an up-front sum of up to 30 percent as a down payment on the loan, so ensure that you've got the money prepared before proceeding.

Know your market
Buying property is a major investment, so it's important to analyze all the facts before taking the plunge. If you plan on renting the property, Yonge says that the current rental market and total cash required are the two most important factors to consider.

"Buyers need to know where they're buying and should verify that the property can be tenanted quickly," he says. "In addition to purchase costs, buyers must also factor in the costs to bring the property to rental ready condition.

Similarly, if you plan on renovating the property in order to resell it, you should speak with a real estate agent or financial planner to ensure that the investment will be worthwhile.

Taxes
Even the brightest prospects can be sunk by a heavy tax burden. That's why it's always wise to consult a real estate attorney about the relevant taxes before closing a property deal, to identify any loopholes or money-saving measures. For example, investors may be able to sidestep capital gains taxes on an investment property if they have lived in the home for at least two of the last five years, according to the IRS.

Growing your portfolio
Once you've successfully purchased your first property, you can begin growing your investment portfolio. To help expedite the process, Yonge recommends hiring a professional. "Working with a good real estate agent, and preferably a good wholesale brokerage can save a ton of time and greatly increase the number of deals a buyer is able to analyze," he notes. It may be wise to invest in several different types of property to reduce risk in the face of market fluctuations.

Source: http://www.foxbusiness.com/investing/2012/05/10/how-to-build-real-estate-portfolio/ Read more: http://www.foxbusiness.com/investing/2012/05/10/how-to-build-real-estate-portfolio/#ixzz1uY0wzcRA

Monday, 7 May 2012

Resort real estate market seeing some gains

EAGLE COUNTYBy the numbers* — There's improving news for those buying and selling real estate in the valley's resort areas. The story isn't as good elsewhere.

For the past few quarters, Fuller BCV Sotheby's International Realty has released “micro market” reports for the valley from Vail to Gypsum. Those reports break down the valley's market into sometimes-tiny bites. Vail Village Arrowhead and other neighborhoods get their own reports, while Eagle and Gypsum are viewed as one area.

That small-view picture gives a close, if not comprehensive, look at the local market. But it sometimes takes a bit of perspective.

For instance, average prices in Vail Village dropped more than 27 percent of the first quarter of this year compared to the same period in 2011.

But Kraig Forbes, the founder of what's become the Vail Valley branch of Fuller BCV, said it's important to understand that when you're looking at a relative handful of sales — 16 in Vail Village from Jan. 1-March 31 — there can be some big swings in averages, depending on what's been sold.

With that in mind, Forbes said he's been seeing some improvements this year in the average price per square foot in many of the valley's resort markets. And according to the report, that number is up in parts of Vail, as well as Beaver Creek, Bachelor Gulch and Arrowhead.

Those numbers come from some small pools of sales, though. For instance, there were just seven first-quarter sales in Lionshead and Arrowhead, and just five in Bachelor Gulch.

Still, Forbes said he's seeing improvements over the last couple of years, and that after some wild high-to-low pendulum swings between 2007 and 2009, the resort market seems to be finding a kind of level these days.

“You're lucky if you can pick either the top or bottom of the market,” Fuller BCV broker Heidi Bintz said. “If you can come close, you're doing well.”

Bintz said that desire to find value is driving her buying clients. But, she said, her selling clients seem to believe they're able to hold out for prices close to what they're asking.

The numbers seem to bear out that impression, at least in the resort areas, were properties are selling for between 85 percent to 94 percent of their asking prices.

And buyers and sellers seem to be more active. Again, the market seems to have found a level between the highs and lows of the market of the last few years.

For instance, Forbes said that in the first part of 2008 — the tail end of the valley's real estate boom — his office was closing a deal nearly every day in the Beaver Creek/Bachelor Gulch/Arrowhead area.

“In the fourth quarter of 2008, after Bear Stearns went under, we closed one deal,” Forbes said.

While the market seems to be on a steady if slow climb in the resort areas, downvalley real estate continues to struggle. According to the micro market report, per-square-foot prices are down in Eagle and Gypsum, and, while that average seems to have bottomed and started a comeback in the resort areas, it's still dropping in the western valley.

There's no way to tell when downvalley prices will start to rebound. But, Forbes said, the numbers in the resort areas “bodes well” for the market as a whole.

Source: http://www.vaildaily.com/article/20120507/NEWS/120509891/1078&ParentProfile=1062

Wednesday, 25 April 2012

UK real estate deal success

MANAMA: Gatehouse Bank, a London-based wholesale Sharia-compliant investment bank, has announced the successful delivery of its realised investment in UK real estate.

This was through the sale of two properties as part of a UK student accommodation portfolio in a deal worth £34.4 million ($55.5m).

The deal represents an excellent return for Gatehouse's investors, who have benefited from an internal rate of return of 18.6 per cent during the two-year holding period, and a return on investment of 37.2pc on exit.

"Over the past two years we have invested in the student accommodation sector on behalf of our investors, confident of the excellent return potential, which we believe we have successfully delivered in the realisation of the UK student accommodation portfolio investment," said chairman Fahed Boodai.

"Gatehouse Bank was quick to seize the market opportunity to enable an impressive return on investment.

"We promised that we would deliver a solid return to our investors, and we have achieved that result yielding a 9.1pc return in the first year, and an increase to 9.7pc in the second year.

"When the time was right, we managed to deliver a successful exit result within two years, one year ahead of schedule as we have achieved our targeted returns. Importantly, we delivered the asset sale with a view to reward our investors with a profitable return on investment as a priority, rather than retain asset management fees for the additional holding period.

"Gatehouse has clearly demonstrated to its investor clients its ability to develop a commendable track record of transactional experience," he said.

"This is due to our unrivalled expertise in the market, which includes a strong UK and US real estate team of originators, analysts, asset managers and a credit and market risk team who provide end-to-end commercial real estate solutions to investors."

Source: http://www.gulf-daily-news.com/NewsDetails.aspx?storyid=328731

Sunday, 18 March 2012

REAL ESTATE DICTIONARY

Agency - Agency means a relationship in which a real estate broker or a licensee represents a client by the client’s consent, whether expressed or implied, in an immovable property transaction. An agency relationship is formed when a real estate licensee works for you in your best interest and represents you. Agency relationships can be formed with buyers/sellers and lessors/lessees.

Agent - One who acts or has the power to act for another.

APR - Annual Percentage Rate is the relationship of the total finance charges associated with a loan. This must be disclosed to borrowers by lenders under the Truth-in-Lending Act.

Appraisal – An estimate of the quantity, quality, or value of something. The process through which conclusions of property value are obtained; also refers to the report that sets forth the process of estimation and conclusion value.

Appraiser – An independent person trained to provide an unbiased estimate of value.

Appreciation – An increase in the worth or value of a property due to economic or related causes, which may prove to be either temporary or permanent.

Closing Costs - Fees and expenses, over and above the price of the property that buyers and sellers normally incur to complete a real estate transaction. Costs incurred include loan origination fees, appraisal fees, title searches, title insurance, surveys, taxes, deed-recording fees and credit report charges. Also known as "settlement costs".

Commission – Payment to a broker for services rendered, such as in the sale or purchase of real property; usually a percentage of the selling price of the property.

Contingency – A provision in a contract that requires a certain act to be done or a certain event to occur before the contract becomes binding.

Contract – A legally enforceable promise or set of promises that must be performed and for which, if a breach of the promise occurs, the law provides a remedy. A contract may be either unilateral, by which only one party is bound to act, or bilateral, by which all parties to the instrument are legally bound as prescribed.

Conveyance – A term used to refer to any document that transfers title to real property. The term is also used in describing the act of transferring.

Deed – A written instrument that, when executed and delivered, conveys title to or an interest in real estate.

Equity – The interest or value that an owner has in property over and above any indebtedness.

Ethics – The system of moral principles and rules that becomes standards for professional conduct.

Fair Housing Act – The federal law that prohibits discrimination in housing based on race, color, religion, sex, handicap, familial status, and national origin.

FHA Loan – A loan insured by the Federal Housing Administration and made by an approved lender in accordance with the FHA’s regulations.

Home Inspection – An inspection of a home to discover damage or defects.

Homeowner’s Insurance Policy – A standardized package insurance policy that covers a residential real estate owner against financial loss from fire, theft, public liability, and other common risks.

Interest – A charge by a lender for the use of money.

Legal Description – A description of a specific parcel of real estate complete enough for an independent surveyor to locate and identify it.

Loan – A loan is a type of debt.

Market Value – The most probable price property would bring in open and competitive market under normal conditions.

Mortgage – A conditional transfer or pledge of real estate as security for the payment of a debt. Also, the document creating a mortgage lien.

Plat – A detailed map that illustrates the geographic boundaries of individual lots.

Private Mortgage Insurance – Insurance provided by private carrier that protects a lender against a loss in the event of a foreclosure and deficiency.

Protected Class – Any group of people designated as such by the Department of Housing and Urban Development (HUD) in consideration of federal and state civil rights legislation. Currently includes ethnic minorities, women, religious groups, the handicapped, and others.

Real Estate Settlement Procedures Act (RESPA) – The federal law that requires certain disclosures to consumers about mortgage loan settlements. The law also prohibits the payment or receipt of kickbacks and certain kinds of referral fees.

Real Property – The interests, benefits, and rights inherent in real estate ownership.

Regulation Z – Implements the Truth-in-Lending Act requiring credit institutions to inform borrowers of the true cost of obtaining credit.

Sales Contract – A contract containing the complete terms of the agreement between buyer and seller for the sale of a particular parcel or parcels of real estate.

Title Search – The examination of public records relating to real estate to determine the current state of ownership.

VA Loan – A mortgage loan on approved property made to qualify veteran by an authorized lender guaranteed by the Department of Veterans Affairs in order to limit the lender’s possible loss.

Saturday, 10 March 2012

Abu Dhabi fund eyes Indian real estate sector

Abu Dhabi Investment Authority (ADIA), one of the world's biggest sovereign wealth funds, plans to invest directly in Indian real estate in an effort to diversify from its current strategy of ploughing money into the country through realty or private equity funds, sources familiar with the matter said.

ADIA's investments in Indian real estate to date total $400-$500m, largely through property and private equity funds, and the fund is now scouting for direct investment opportunities, one of the sources said.

The sovereign fund, whose assets range from Citigroup bonds to a stake in Britain's Gatwick airport, is close to hiring a country-dedicated fund manager from a large private equity firm to look for real estate opportunities in Asia's third-largest economy, the sources said.

ADIA recently invested $50m in an India-focused real estate private equity fund run by Red Fort Capital, one of the sources said. In January, Red Fort said it planned to raise $500m for its second India-dedicated property fund, of which it had already raised $80m.

Red Fort officials could not immediately be reached for comment.

The sources did not give the name of the person ADIA is hiring and spoke on condition of anonymity as the matter has not been made public yet.

A spokesman for ADIA in Abu Dhabi declined to comment.

Large sovereign wealth funds including Singapore's Government Investment Corp (GIC) are keen to invest in Indian property as the country's cash-strapped developers seek funds to kickstart development and reduce debt.

Debt held by Indian developers hit 1.8trn rupees ($35.74bn) as of September 2011, according to a report by Infrastructure Development Finance Corp.

International private equity firms, which have invested $13bn in the Indian real estate sector since 2005, are expected to exit from up to $5bn of investments over the next couple of years, according to property consultancy Jones Lang LaSalle.

This will widen the funding gap for developers at a time when home sales are low and banks are cautious about lending to the sector.

GIC has been in talks with several Indian developers, including oil-to-steel conglomerate Essar Group's real estate arm, Equinox Realty, and developer Godrej Properties, to invest in their projects.

ADIA has expressed "keen interest" in investing in the country, India's Trade Ministry said in a statement in January, adding that it had agreed to speed up the creation of a joint working group to facilitate the fund's investment.

Real estate investments constituted between 5 and 10 percent of ADIA's overall global portfolio, according to its 2010 annual review. The real estate division is run by Bill Schwab, who joined the fund in 2009 from JPMorgan Chase.

North America and Europe accounted for a major chunk of the ADIA's investments, with 60 percent to 85 percent poured into those regions. Emerging markets constituted about 15 percent.

The fund returned 7.6 percent on an annualised basis over a 20-year period as of December 31, 2010, it said in its review.

While the ADIA does not disclose its net worth, analysts estimate its assets to range between $400-$600bn.

Source: http://www.arabianbusiness.com/abu-dhabi-fund-eyes-indian-real-estate-sector-449155.html

Wednesday, 7 March 2012

China's real-estate boom hits warp speed

CHANGSHA, China — In early December, Liu Zhangning was tending her cabbage patch when she saw a tall yellow construction crane in the distance. At night, the work lights made it seem like day.

Fifteen days later, a 30-story hotel towered over her village on the outskirts of the city like a glass and steel obelisk.

“I couldn’t really believe it,” Liu said. “They built that thing in under a month.”

A time-lapse video of the project in Changsha, which shows the prefabricated building being assembled on site, has racked up more than 5 million views on YouTube and left Western architects speechless.

“I’ve never seen a project go up this fast,” said Ryan Smith, an expert on prefabricated architecture at the University of Utah.

In other countries, the most advanced prefab construction methods can reduce building times by one-third to one-half, Smith said. The builders of the Changsha hotel did better, knocking one-half to two-thirds off the normal schedule.

“It’s unfathomable,” Smith said.

The warp-speed construction is a startling illustration of the building boom in China, where an exodus from the countryside to the cities has swelled the urban population by almost 400 million since 1990.

Skylines are peppered with cranes. Smog-choked streets echo with the pounding of jackhammers. Residential high-rises sprout like weeds in the plains between major cities, creating an endless sprawl along the country’s east coast.

The breakneck pace of construction reflects a societal urge to catch up as fast as possible to the developed world after decades of scarcity under Mao Tse-tung, said Zhang Li, a Beijing architect.

The focus on fast construction took root during the economic reforms of the early 1980s, Zhang said. Prefabrication methods, well established elsewhere but just catching on in China, have magnified it.

Raising a 30-story tower in two weeks is possible because most of the work is done in a factory and the foundation has been laid ahead of time. China’s abundance of workers also helps.

But a job done quickly is not always a job done well. Zhang said that in their race to the finish line, many Chinese construction companies skimp on the meticulous reviews and inspections that make projects in the West drag on for years.

“Incredible speed also means incredible risk,” he said. “But only time will tell how serious the risk is.”

The Chinese company behind the Changsha hotel, Broad Sustainable Building, says it cuts no corners on safety. To the contrary, it says, its methods will make China’s construction boom safer, cheaper and more environmentally friendly.

In promotional literature, Broad boasts that its technology is “the most profound innovation in human history” and that construction on a third of the world’s new buildings will be done this way “in the near future.”

The hotel, called T-30, looms over dilapidated concrete homes interspersed with piles of garbage and rows of cabbages and leeks. Dogs and chickens run through muddy alleyways.

In mid-January, a month after the building’s announced completion, its interior was a hive of activity. Many of the 500 rooms were finished, with made beds and white sofas. In others, wires protruded from unfinished walls. Paint-splattered workers hauled wooden planks past a grand piano in the pristine marble lobby.

The hotel, which will accommodate visiting clients of Broad Sustainable Building and house some of its employees, is about 400 yards from the cavernous white factory where its components were manufactured. The headquarters of the parent company, Broad Group, is a 90-minute drive away.

Zhang said he got the idea to manufacture prefabricated buildings after a massive earthquake in Sichuan province in 2008 in which the collapse of poorly constructed buildings killed tens of thousands of people, many of them schoolchildren.

“This is the tallest building in this county, and it’s also the fastest-built,” said Rong Shengli, one of the building’s planners, looking over the rural sprawl from a helicopter pad on the hotel’s roof. “Next, we’re going to build a 50-story building. Then a 100-story one, then a 150-story one. And they’re all going to go up fast.”

The time-lapse video provides a glimpse of how the hotel was made. Workers in blue jumpsuits are seen assembling “main boards,” the building blocks of Broad’s structures — 13-by-50-foot slabs containing ventilation shafts, water pipes, electric wiring and lighting fixtures sandwiched between ready-made floors and ceilings.

A counter at the bottom of the screen ticks off the hours as the boards are loaded onto a truck and delivered to the construction site. A crane then stacks them up like blocks. Workers bolt in pylons and piece together staircases; the glass-and-steel exterior rolls up onto the frame like a gleaming carpet.

At 360 hours, the ticker stops.

Building this way costs 20 percent to 30 percent less than traditional methods, said Jiang Yan, a senior vice president at Broad.

It’s also safer, said Zhang Yue, chief executive of Broad Group, because factories are typically less risky environments than construction sites.

“The faster, the safer,” Zhang said. “It’s like crossing the road. If you slowly walk back and forth in the middle of the road, that’s not safe.”

The China Academy of Building Research has declared Broad’s structures earthquake-resistant up to magnitude 9. (The largest recorded quake of the 20th century, which hit Chile in 1960, measured 9.5.) The company says the strength of its buildings comes from their lightweight steel structures and diagonal bracing.

Zhang said he got the idea to manufacture prefabricated buildings after a massive earthquake in Sichuan province in 2008 in which the collapse of poorly constructed buildings killed tens of thousands of people, many of them schoolchildren.

Zhang said it took about 200 of the company’s 900 employees to put up the hotel. They are paid $500 to $800 a month, above average for China. Although some company executives acknowledged that many workers put in well over 40 hours a week, Zhang said they do not work later than 10 p.m.

Unlike most Chinese tycoons, Zhang cultivates a reputation as an environmentalist. The company touts its sparing use of concrete to cut down on waste. Its buildings have low-energy lighting, water-saving toilets and elevators that generate electricity on the way down.

Broad Sustainable Building has completed only a handful of projects. Its first was the 15-story New Ark Hotel, which the company built in about six days near Broad Group’s headquarters in 2010. Soon afterward, it built a six-story building at the 2010 Shanghai World Expo in less than 24 hours.

Its first international project was a two-story building erected at the United Nations Climate Change Conference in Cancun, Mexico, in 2010. Mexican President Felipe Calderon called it a “revolution of the world’s architectural and housing industry.”

The company says it is negotiating technology-transfer deals with firms in Brazil, Saudi Arabia, Mexico and India and hopes to establish partnerships in the United States.

Experts say that may not be easy. Broad’s buildings may not conform to U.S. fire codes. Labor laws could prevent employees from working the long hours required to construct a building with such speed.

Amy Lelyveld, a professor of architecture at Yale University, described prefabricated buildings in the U.S. as “kind of at the jewelry-making end of architecture” — an expensive niche.

Lelyveld expressed concern about the adequacy of construction oversight on a complicated, hurriedly constructed building like the Changsha hotel.

“I wonder why it was so fast,” she said, adding that “if it was slower there might be more opportunities to inspect the work.”

Zhang, however, said Broad could adapt to labor and fire safety laws in other countries, and that employees’ workdays would drop to eight hours as the company’s technology improves. “We will use international standards,” he said.

Zhou Weidong, a vice president at Broad Sustainable Building, said the company was developing as quickly as its home country. Looking out the window of a company Buick, he noted that the squat concrete homes, convenience stores and auto repair shops lining the newly paved road between the headquarters of Broad Sustainable Building and central Changsha were at most a year old.

“Three years later, if you come back here, this will be a city,” he said. “That’s China. It changes overnight.”

Source: http://www.therepublic.com/view/story/REAL-CHINA-FASTBUILD_7461409/REAL-CHINA-FASTBUILD_7461409/

Friday, 2 March 2012

Real estate market likely to recover later this year

HA NOI — The domestic real estate market was expected to recover in the second half of this year but the recovery will only occur in some segments of the sector, said an official of the House and Real Estate Market Management Department.

Vu Xuan Thien, deputy head of the department under the Ministry of Construction, forecast that in the second half of this year, the market would see a recovery in low and medium-price apartments as well as villas and houses located in suburban regions at reasonable prices.

According to Thien, the second half of the year will be good time for the people to buy property at reasonable prices.

Surges in housing and property prices were less likely, he said.

The existing challenges faced by the property market would remain in the first half of this year, he said, due to the impacts of policies on curbing inflation and stabilising the macro-economy.

Trading activities on the domestic property market had almost stopped, he said, as prices were still extremely volatile. The market had failed to focus on projects that met the people's demand, especially houses and apartments for rent. Construction of housing or apartment projects were progressing slowly.

Thien said the existing difficulties experienced by the domestic property market were largely a result of a lack of timely guidelines from authorities.

In addition, some property development and trading companies who lack professionalism and adequate financial sources were complicating matters, he said.

Le Thien Linh, head of the General Management Division of LILAMA Joint Stock Company, said difficulties in securing capital had forced his company to focus on manufacturing and construction in stead of property, which had been one of the company's non-core businesses during the past few years.

Meanwhile, few property companies have large enough sources of capital to finance their projects.

Le Thanh Than, director of Lai Chau Private Construction Company, said his firm was an exception.

The company had enough funds for its property projects as it did not rely on banks, said Than, instead using funds from its hotel and tourism businesses to invest in property development. — VNS

Source: http://vietnamnews.vnagency.com.vn/Economy/221625/real-estate-market-likely-to-recover-later-this-year.html

Wednesday, 29 February 2012

Florida real estate market starting to turn around

Inventories are down, lending has loosened

Just as even the brightest, warmest sun must eventually set, the era of bargain real estate in Florida may be coming to an end, experts say.

Florida, which was among the first U.S. states to be hit by the real estate downturn and recession, is finally emerging from its swamp of foreclosures and depressed house prices. Realtors’ gut instincts, anecdotes and hard evidence all point to a turnaround under way in the state’s home prices — a development that could light a fire under any would-be Canadian snowbirds.

Florida cities took eight spots on the National Association of Realtors’ recent list of “Top 10 turnaround towns.” Miami — where 60% of all buyers are foreigners and the median house price is US$185,000 — was No. 1. Inventory is disappearing: In Fort Lauderdale, the number of homes listed on the market dropped 42% from 2010 to 2011. And a report commissioned by two Florida real estate firms, the Related Group and International Sales Group, predicted that by the end of this year, the developer-owned condo inventory from the last round of construction, in 2005-’06, will have completely evaporated from the Miami area.

Realtors are trying to recruit potential buyers with the message that anyone thinking of buying a home in Florida ought to look now, because the bargains won’t last forever.

“It’s actually the best time they’re going to have. We’ve been telling people for about the last year and a half to basically get down there and start looking. If they want to buy something, they should do so sooner rather than later,” says Brian Ellis, vice-president of Florida Home Finders. A brokerage based in Vaughan, Ont., it specializes in helping Canadians navigate the real estate market in Florida.

“We are expecting a substantial price bounce in Florida,” he says.

Phil Wood, president of John R. Wood Realtors of Naples, Fla., says there have even been multiple offer situations in his Southwest Florida territory, something that was “absolutely not” the case during the worst of the downturn.

Now, with a slow turnaround finally beginning in the U.S. economy, would-be secondhome buyers who had been circling Florida real estate are moving in for the kill.

“The buyers that we’re seeing, they’re for the most part second-home buyers who have been waiting. They’ve wanted to be down here for four or five years but all their plans got delayed because of the recession,” Mr. Wood says.

Other factors are bringing Americans back into the market: The banks are loosening their lending again. And as Mr. Ellis explains, Americans who walked away from their underwater homes (where they owed more than the home was worth) early in the downturn, around 2007, are now re-emerging with good enough credit to secure mortgages.

“It takes anywhere from four to five years [to come back] if you walked away from your home or were foreclosed on. As long as you’ve kept your credit good from that time on, you will be cleared to go back to the mortgage market again,” he says.

Mr. Wood says Canadians still have a competitive edge in the Sunshine State. “The loonie — I think that’s what you call your dollar — has been at or above the [American] dollar for a while now, so a lot of Canadians are looking at that and say-ing, ‘I could get real good value down in the States.’ “

And Canadians are more likely to have a healthy amount of equity available to pull out of our homes. Not surprisingly, we make up 12% to 15% of John R. Wood Realtors’ business.

Florida Home Finders specializes in catering to Canadians, who often lack knowledge of Florida markets. “We find great properties that meet the criteria most Canadians are looking for, and market them here in Canada,” Mr. Ellis says.

“We set expectations as well,” he continues, “because most Canadians have absolutely no clue about what’s really going on in the state of Florida. Setting expectations is one of the biggest things we do.”

While many (if not most) Florida homes are still deadly cheap by Canadian standards, wild tales of a feast of foreclosures are an exaggeration. You’re simply not going to pick up a dream condo on the waterfront for US$20,000, Mr. Ellis cautions.

Depending on the region, however, Canadians may be surprised at what they can get for $100,000 or $150,000.

Where to look? Whereas many part-time Florida residents enjoy the bustle of the Fort Lauderdale-Miami corridor, the relative tranquility of Southwest Florida — with communities including Fort Myers and Naples — has attracted snowbirds by the flock.

“Quite frankly, the Southwest is where the best deals are right now,” Mr. Ellis notes.

Before hunting for those deals, Canadians should be aware that securing a mortgage pre-approval in the United States can take weeks instead of the days Canadians are used to (even through a Florida-based branch of a Canadian bank). So it’s crucial to have one’s borrowing plans figured out before putting in any offers.

Canadians also have to learn about taxation and immigration issues.

House hunters with intentions of renting out their properties for extra income should also be aware that condo boards often restrict that practice — even when the home is a single-storey, villa-style condo of the kind common in Florida.

Finally, as in Canada, buyers must have a lawyer confirm that a condominium association’s finances are in good order. Since the economic downturn, “a lot of them are not in good shape,” Mr. Ellis says. The upshot can be a steep increase in condo fees down the road.

Despite potential pitfalls, Mr. Ellis urges Canadians to take serious steps toward buying a piece of the Florida sunshine, if they’ve ever considered it before. “It’s one of those woulda coulda shoulda times,” he says.

Source: http://life.nationalpost.com/2012/02/29/florida-real-estate-market-starting-to-turn-around/

Tuesday, 28 February 2012

Dublin’s real estate prospects slightly improved

A new report has revealed that Dublin is showing signs of slight improvement in the real estate sector, while Istanbul, Munich, Warsaw, Berlin and Stockholm are the top five European cites for real estate investment.

The PricewaterCoopers (PwC) and Urban Land Institute (ULI) report notes that Europe’s economic crisis has left real estate investment and development in limbo, with little relief expected in 2012.

‘Emerging Trends Real Estate Europe’ says that the prospects for any turnaround this year hinge on how recent regulatory measures will affect banks’ willingness to make commercial loans, and whether another financial industry collapse caused by sovereign debt issues triggers a widespread release of assets by banks to investors.

It predicts that this year, property financing will become a major casualty of the measures banks take to tackle regulatory and macro-economic pressures; deleveraging will not free up capital for fresh property lending; debt will become more short-term and expensive; and the need to find alternative sources of funding will become imperative.

“The profound instability is affecting the providers of equity and debt,” said Joe Montgomery, chief executive of ULI Europe.

“We are operating in an environment that is very difficult to model. The uncertainty over the level of banks’ exposure to sovereign debt default, coupled with uncertainty over the regulatory changes introduced as a result, has caused significant elements of the capital markets to be reduced to a state of near paralysis.”

Meanwhile in 2011 Dublin was rated the lowest of the 27 cities evaluated for both investment and development prospects, according to the report.

In 2012 there is some improvement, with Dublin ranking second from the bottom on prospects for investments, fifth from the bottom for new investments and third from the bottom for development.

The general consensus, it says, is that Ireland’s economy has been through the worst, although uncertainties in the eurozone, the UK and the US, have presented a whole new set of challenges.

“The survey results indicate increased interest from international investors in Irish property and we are seeing that on the ground also,” commented Enda Faughnan, real estate partner, PwC Dublin.

“The expectation is also that the combination of the very positive changes for the property sector announced in Budget 2012 and increased activity from the banks will result in a much stronger transaction flow this year.”

Karina Corbett

Source: http://businessandleadership.com/business/item/34108-dublins-real-estate/

Friday, 24 February 2012

Low prices and interest rates mean it is a good time to buy in the US

Residential markets in the United States are presenting some unique opportunties for buying that simply haven’t been seen before, it is claimed.

It is the fact that prices are at decade lows and interest rates are at historic lows that makes the market so attractive, according to says Margaret Kelly, chief executive officer of RE/MAX, the leading global real estate franchisor with more than 80,000 sales associates in 80 countries.

She sees the market improving in 2012, but there are some outside factors that could possibly slow the recovery.

‘This year a crisis like the European debt situation could trigger inflation and send mortgage rates up, or prices could rise. This is the year many people will look back and wish they had bought a home because these conditions aren't going to last forever,’ she explained.

With an extensive background in housing finance and a new position on the board of the Kansas City Federal Reserve, Kelly has access to the best available data but she does not pay much attention to national real estate figures.

She believes that buyers and sellers ought to realise that real estate statistics vary widely from community to community. Since there is no such thing as a national real estate market, she considers the dissemination of national data misleading to the public.

She reckons the best thing is to talk to an agent in your area. Also RE/MAX publishes its own monthly housing report covering 53 metropolitan markets across the nation. It its most recent version, November home sales were 8.1% higher than November 2010, the fifth consecutive month to show a year on year sales increase.

At the same time, the number of homes for sale, or inventory, continued to fall for the 17th straight month. November home prices were 1.4% higher than October, making it the fifth month in 2011 that prices have risen month on month. However, home prices remained 4.2% lower than prices in November last year.

‘Markets are stabilising. Rates are low for buyers. Investors are accounting for 20 to 25% of sales and foreign buyers are accounting for $82 billion in sales,’ she said.

‘There is a huge pent up demand for home ownership. Home ownership rates will rise because even in the minds of the majority of renters, the American dream of home ownership is still very much alive. It's an incredible time to buy and if you don't, you just might regret it,’ she added.

Source: http://www.propertywire.com/news/north-america/us-real-estate-buyers-201202236203.html

Sunday, 19 February 2012

Proposed budget would raise real estate tax rate

Residential tax bills in Prince William County would increase by an average of $110 if a budget plan laid out by the county executive is adopted by the Board of County Supervisors.

County Executive Melissa S. Peacor’s proposed budget of $912.6 million for the next fiscal year calls for a tax rate of $1.215 per $100 of assessed value, an increase over this fiscal year’s rate of $1.204 per $100 of assessed value. That would bring the average real estate tax bill to $3,311, according to Peacor’s presentation. The next-closest real estate tax bill is Alexandria’s average of $4,485.

Peacor’s budget outline sets the stage for Tuesday’s Board of County Supervisors meeting, where low-tax proponents — including Board Chairman Corey A. Stewart (R-At Large) — will face a decision about which tax rate to advertise. Although the final budget will not be adopted until April, the advertised rate will effectively set a budget cap. Per state law, Prince William’s final real estate tax rate cannot exceed the advertised rate they are scheduled to set Tuesday.

Meanwhile, schoolteachers have lobbied the Board of County Supervisors for more funds, particularly for salary increases. Some teachers are protesting with a “work to the rule” campaign, in which they are working only the hours specified in their contracts.

About 57 percent of the county’s budget is allocated toward schools.

Stewart said in an interview that he disagrees with Peacor’s proposal. “I will not vote for an increase in the tax rate,” Stewart said. He said that he hopes to advertise a tax rate that calls for flat or lower real estate tax bills.

Stewart said that the elected School Board has to spend its money based on its priorities but that state budget cuts were mostly to blame for the schools’ austerity. Proposed cuts in “cost to compete” funding are landing heavily on Prince William, he said, and he is working with state legislators to reinstate those dollars.

“If the school system wants us to completely replace state funding cuts, we would have to raise tax bills significantly and . . . we’re not going to be putting that burden on the local taxpayer,” he said.

School Board Chairman Milton C. Johns couldn’t be reached for comment Friday.

Stewart said one item that he thinks can be cut from Peacor’s proposed budget is the Central District Police Station, which has generated some neighborhood opposition. Stewart said it needs to be built at some point but could probably be pushed off to the future.

Peacor’s facility budget calls for a new station near Davis Ford Road and Prince William Parkway to maintain response times and relieve overcrowding of the area’s other police stations. The station would cost of $28.1 million over the next three fiscal years.

Other big-ticket items include $464,913 for a new community development office in the eastern part of the county. The budget also includes a 3 percent merit pay raise for county staff members and funds for 12 new police officers, among other additions.

House values went up slightly last year by an average of 2.5 percent.

Source: http://www.washingtonpost.com/local/proposed-budget-would-raise-real-estate-tax-rate/2012/02/17/gIQAB9EhMR_story.html

Wednesday, 15 February 2012

REAL ESTATE: Inland home sales, prices dip in January

Despite record low mortgage interest rates, home sales and median home prices dropped in Riverside and San Bernardino counties last month, compared to January of 2011.

There were 2,684 home sales in Riverside County, which was a 2 percent decline from a year earlier. The county’s median home price — where half were priced higher and half lower — dropped by 5 percent to $180,500.

In San Bernardino County, home sales fell 1.6 percent to 2,051, while the median home price dipped 1 percent to $150,000. That is down $1,500 from the median home price a year earlier.

By contrast, DataQuick — which released the January data today — reported that the entire Southland, which also includes Los Angeles, San Diego, Ventura and Orange counties, started the year with slightly higher sales. Sales regionwide have increased year-over-year for five of the last six months. There was a sharp sales decline in December, which is normal for the season.

Home builders have fared the worst, with January sales of newly built homes falling to 669, the lowest number for any month since DataQuick started keeping track in 1988.

“January numbers have never been very good at providing an indication of what upcoming activity will be like. For that we need to wait until March,” said John Walsh, DataQuick president. “What we can determine is that the mortgage market remains dysfunctional. It will be interesting to see how a potential surge of refinance activity (in response to new federal refinancing programs for underwater mortgages) plays into the purchase market once the administration’s guidelines are implemented.

The median price paid for a Southland home last month was $260,000, down 3.7 percent from $270,000 for both December and January last year. The median was the lowest since $249,000 in May 2009. In the recent down cycle the median price bottomed at $247,000 in April 2009, after falling from a high of $505,000 in mid 2007.

The drop was due to both a decline in home values and a shift in sales to lower-cost homes, especially foreclosed homes in Riverside and San Bernardino counties, said DataQuick.

Source: http://www.pe.com/business/business-headlines/20120215-real-estate-inland-home-sales-prices-dip-in-january.ece

Monday, 13 February 2012

Location still rules in real estate

By ROBERT DIGITALE / The Press Democrat

On a recent Friday night, the Century 21 Classic Properties office in Rohnert Park was bustling with agents working late to write offers and show clients properties.

A few years ago, business was “a lot slower,” said Pat Miller, a broker associate at the office. But times have changed, even in January, often the doldrums for home sales.

“We’re still screaming busy,” Miller said.

In 2011’s bumpy real estate market, Rohnert Park and neighboring Cotati saw their biggest home sale numbers in five years. Single-family sales rose 21 percent last year, while condominium sales jumped 26 percent, according to the Press Democrat’s monthly housing report compiled by Pacific Union International Vice President Rick Laws.

Other communities with their best sales years in a half-decade include Windsor, Healdsburg, Sonoma, west Petaluma and the Sonoma Coast.

Across Sonoma County, home sales rose 7 percent last year as buyers purchased 4,637 homes, the second-best year since 2005. The year’s median price fell 8 percent to $325,000, the lowest since 2000 when not adjusted for inflation.

Some communities turned in stronger performances, while others lagged behind.

In Santa Rosa — the county’s single biggest real estate market — sales rose 5 percent last year but the median price fell 9 percent to $295,000.

In Rohnert Park and Cotati, agents and brokers suggested the jump in sales last year came from both an uptick in buyer confidence and a continued drop in prices. The lower prices at times were exacerbated by an abundance of foreclosures and short sales, where the home is sold for less than the amount owed on the mortgage.

In 2011, the median price for a single-family home in the two cities fell 11 percent to $285,000. That amounted to half the median price in 2005 of $565,000.

The drop in home prices meant that once more “the average family can afford the average house. And the average house is in Rohnert Park/Cotati,” said Matthew Tarr, a broker associate with RE/MAX Pros in Rohnert Park. Most of the homes there were constructed in tract subdivisions rather than by custom builders.

The RE/MAX office sold more homes last year than in 2005, Tarr said.

Along the Sonoma Coast, which includes Bodega Bay, sales increased 18 percent from 2010, while the median price dropped 12 percent to $525,000.

The vast majority of coastal buyers are seeking second homes or vacation rentals. More seemed ready last year to make such discretionary purchase, probably due to low interest rates, lower prices and a belief that “the market’s not going to fall off the cliff,” said Steve Hecht, a broker associate with Artisan Sotheby’s International.

But if buyers are content to snap up deals, many owners trying to sell homes take a different view of the situation, Hecht said.

“The sellers are tired of getting beat up,” he said. “They’re saying, ‘We’ll just wait it out.’”

That view may help explain a near-universal lament by agents and brokers about a lack of available homes for sale. The county ended December with only 1,120 single-family homes on the market, down 32 percent from a year earlier.

In Healdsburg, agents often see a slowdown in business from Christmas until the Super Bowl, said Beth Robertson, a broker associate for Century 21 North Bay Alliance. But this year, perhaps encouraged by the warmer winter, more buyers wanted to go looking for properties.

“The sun’s out and they love it,” Robertson said.

Last year sales were up 5 percent in Healdsburg and 10 percent in Sonoma. For both towns, it was the biggest results since 2005.

The two towns attract a higher share of buyers looking for second homes than do many other communities in the county. Even so, the bulk of their sales today fall under $500,000.

In comparison, “five years ago we didn’t have a house under $500,000,” said Catherine Sevenau, broker/owner of Century 21 Wine Country in Sonoma.

The mid-range market of $500,000 to $900,000 remains sluggish in both towns. But in the last half of the year, Sonoma agents saw “an uptick in the higher end of the market,” those homes priced at $1 million or more, said Jill Silvas, branch executive in Sonoma for Pacific Union International.

For many communities, sales last year got a boost from buyers of rental properties.

“There’s a tremendous amount of investor-type folks with a good amount of cash that are still looking for good buys,” said Tom Lawrence, a broker associate who specializes in Windsor and Healdsburg properties for Wine Country Group.

The housing market now has gone through six years of near-steady declines in home prices. But the extent of that decline varies considerably among communities.

In southwest Santa Rosa, the median price has fallen 56 percent since 2005. Other communities with the largest drops include northwest Santa Rosa, which declined 51 percent; Rohnert Park/Cotati, 50 percent; Cloverdale, 49 percent, Russian River, 48 percent; and Windsor, 45 percent.

At the other end, the median price in Healdsburg is down just 32 percent in six years. The drop in Sebastopol was 34 percent; west Petaluma, 38 percent; and both Oakmont and Sonoma, 39 percent.

Most of the communities with the smallest drops are “eminently desirable places” with “the plaza ambience” of small towns, said Laws at Pacific Union. That desirability curbed the drop in prices.

At the other end of the spectrum, west Santa Rosa and Windsor were home to the bulk of the county’s new home construction in the last decade, said Mike Kelly, an agent with Keller Williams Realty in Santa Rosa.

Those new buyers not only went underwater fast when home values plummeted, but many of them also had interest-only and other “funny money” loans that imploded when the buyers had no chance of refinancing, Kelly said. Many of their homes ended up in foreclosure and values in those neighborhoods suffered even more.

“They just got nailed,” Kelly said.

Source: http://rohnertpark.towns.pressdemocrat.com/2012/02/news/location-still-rules-in-real-estate/

Real Estate Market Continues Steady Recovery

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