Globally, the U.S. is a deal in luxury housing

CHICAGO – June 14, 2017 – Luxury real estate buyers may find bargains in the U.S. compared to the rest of the world. The U.S. is hardly the most expensive when it comes to home prices in its luxury market.

Instead, China takes the world crown in that arena for the fastest-rising prices in luxury residential real estate around the world. Luxury home prices in Guangzhou, the capital of the southern province of Guangdong, rose a whopping 36.2 percent from March 2016 to March 2017, according to Knight Frank’s first-quarter Prime Global Cities Index, which ranks the top 5 percent of luxury real estate sales in 41 large international cities.

Meanwhile, the U.S.’s single-digit increases in that time period may seem more modest in comparison.

The top three global cities to land on the list are Guangzhou, up 36.2 percent; Beijing, where luxury home prices rose 22.9 percent; and Toronto, prices up 22.2 percent.

The U.S. cities landing on the Prime Global Cities Index include Miami (at number 14 on the list with a 4.1 percent year-over-year price increase), Los Angeles (prices up 2.5%), San Francisco (prices up 1.8%), and New York (prices up 1.7%).

“We’re seeing steady and sustainable luxury price growth in the key U.S. markets,” says Kate Everett-Allen, head of international residential research at Knight Frank. However, the cost of buying luxury homes isn’t rising quite as quickly in the U.S. as some other parts of the world because “there are a lot of major changes taking place both politically and internationally.”

Source: “The New Hot Spots for Luxury Real Estate Around the World,” realtor.com® (May 8, 2017)

© Copyright 2017 INFORMATION, INC. Bethesda, MD (301) 215-4688

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Affordable housing: Americans want help getting in

WASHINGTON – June 22, 2017 – Most Americans and Canadians say their nations aren’t doing enough to address and solve affordable housing needs, according to Habitat for Humanity’s Affordable Housing Survey. Escalating costs remain a top barrier preventing families from accessing decent homes with affordable mortgages, the survey says.

“In many ways, housing is an invisible crisis,” says Jonathan Reckford, CEO of Habitat for Humanity International. “There are still too many families without access to safe, secure and affordable housing. This survey highlights the value all of us place on a decent place to call home and underscores the critical need to increase access to affordable housing.”

Owning a home is a key rung on the ladder of economic advancement. What happens if that rung remains elusive for many?

According to the survey, nine out of 10 Americans say owning a home is one of their greatest achievements in life. Also, 68 percent of U.S. renters say owning a home is one of their chief goals, according to the survey. PSB, on behalf of Habitat for Humanity, surveyed 1,000 people in the U.S. and Canada to gauge their perceptions of, and challenges to, affordable housing.

Ninety-one percent of American homeowners credited owning a home with making them more responsible, and 44 percent said it helped them build a nest egg. Forty-one percent say homeownership has given them stability.

But homeownership remains out of reach for many. Nine out of 10 Americans and Canadians say it’s important to find solutions to the lack of affordable housing. At 59 percent, concerns regarding U.S. affordability in particular easily topped other housing issues like safety (16%) and quality (11%).

One major barrier to homeownership cited among survey respondents: the high cost of rent. Eighty-four percent of survey respondents said the high cost of rent was preventing them from buying, followed by 75 percent who said obtaining a mortgage was proving to be a big barrier.

Many of the survey respondents said they’ve struggled to pay housing costs at some point in their life. Among U.S. respondents, 27 percent of respondents said they struggled to pay housing costs in their 20s; 22 percent in their 30s; 11 percent in their 40s; and 9 percent in their 50s.

Source: “Nine Out of 10 Americans and Canadians Call for Affordable Housing Solutions,” Habitat for Humanity (June 20, 2017)

© Copyright 2017 INFORMATION INC., Bethesda, MD (301) 215-4688

Fla. metros added to federal homebuyer program

WASHINGTON – Nov. 11, 2015 – The Federal Housing Finance Agency (FHFA) announced an expansion of the Neighborhood Stabilization Initiative (NSI) to 18 additional metropolitan areas around the country, including four in Florida: South Florida, the Orlando area, the Tampa area and Jacksonville.
Effective Dec. 1, local community organizations in the metro areas will be able to buy foreclosed properties owned by Fannie Mae or Freddie Mac before the general public has a chance.
FHFA, Fannie Mae and Freddie Mac jointly developed NSI through a partnership with Fannie Mae and Freddie Mac and the National Community Stabilization Trust (NCST). The pilot program launched initially in Detroit and was later extended to the Chicago metro area.
“The number of REO properties that Fannie Mae and Freddie Mac hold continues to decline nationwide, but there are still some communities in which the number of REO properties remains elevated,” says FHFA Director Melvin L. Watt. “Our goal is to take what we learned in Detroit and Chicago and apply it to these additional communities as quickly and efficiently as possible.”
Watt says “giving local community buyers an exclusive opportunity to purchase these properties at a discount, taking into account expenses saved through a quicker sale, is an effective way to give control back to local communities and residents who have a vested interest in stabilizing their neighborhoods.”
The 18 metropolitan areas designated for NSI expansion include:
Akron, Ohio

Atlanta-Sandy Springs-Roswell, Georgia

Baltimore-Columbia-Towson, Maryland

Chicago-Naperville-Elgin, Illinois

Cincinnati, Ohio

Cleveland-Elyria, Ohio

Columbus, Ohio

Dayton, Ohio

Detroit-Warren-Dearborn, Michigan

Jacksonville, Florida

Miami-Fort Lauderdale-West Palm Beach, Florida

New York-Newark-Jersey City, New York-Pennsylvania-New Jersey

Orlando-Kissimmee-Sanford, Florida

Philadelphia-Camden-Wilmington, Pennsylvania-New Jersey-Delaware

Pittsburgh, Pennsylvania

St. Louis, Missouri

Tampa-St. Petersburg-Clearwater, Florida

Toledo, Ohio

Community organizations in South Florida estimate that about 2,000 foreclosed homes could eventually end up in the program, which focuses on homes valued at $175,000 or less.
“It’s very difficult to compete with investors who get distressed properties,” Terri Murray with the nonprofit Neighborhood Renaissance told the Miami Herald. “The investors are profit-driven while we are mission driven. This program evens the playing field for us.”
© 2015 Florida Realtors®  

Too many potential buyers think they won’t qualify 

WASHINGTON – Nov. 4, 2015 – Most people don’t know that they can buy a home with only 3 percent down, Freddie Mac says. To boost homeownership, Freddie is partnering with faith-based organizations as a way to attract more potential borrowers to its 3 percent downpayment mortgage product.
In recent years, many faith-based groups switched their attention from homebuyer outreach programs to foreclosure prevention because the financial crisis took a toll on many existing homeowners. Freddie hopes that some of these groups will again start to focus their efforts on homeownership.
The initiative includes financial education seminars and counseling sessions hosted by faith-based bodies that will use materials provided by Freddie Mac.
The mortgage finance giant has also partnered with Quicken Loans, other lenders and non-profits to promote its 3 percent downpayment program.
Many consumers are qualified to own a home but may not realize that, says Chris Boyle, a senior vice president at Freddie Mac. “We do think there’s a market out there that is not coming to the fore, and millennials is one group,” according to Boyle.
Source: American Banker (11/03/15) Berry, Kate
© Copyright 2015 INFORMATION, INC. Bethesda, MD (301) 215-4688

Cash sales down – but some Fla. cities don’t notice

NEW YORK – Oct. 27, 2015 – Cash sales made up 30.8 percent of all home sales nationwide in July, down from 34.2 percent the same month a year ago. It’s the 31st year-over-year monthly drop in a row.

According to CoreLogic, cash transactions slipped 0.5 percentage points on a month-to-month basis. The five states where these deals were highest during July were Alabama (47.4 percent), Florida (44.7 percent), New York (42.8 percent), West Virginia (41.1 percent) and New Jersey (39.5 percent).

REO properties accounted for 56 percent of all cash home purchases. Cash deals for resales and short sales made up about 30.2 percent and 28 percent, respectively. All-cash sales of new homes, meanwhile, tallied 15.6 percent of the total sales volume in that niche.

Of America’s 100 biggest metro areas, Florida is home to all five markets with the greatest percentage of July cash sales: West Palm Beach-Boca Raton-Delray Beach, at 53.2 percent; Miami-Miami Beach-Kendall, at 52.2 percent; North Port-Sarasota-Bradenton, at 50.1 percent; Fort Lauderdale-Pompano Beach-Deerfield Beach, at 48.4 percent; and Cape Coral-Fort Myers, at 47.9 percent.

Source: 24/7 Wall St. (10/23/15) Ausick, Paul

© Copyright 2015 INFORMATION, INC. Bethesda, MD (301) 215-4688