There was widespread belief in a national housing slump following expiration of first-time home buyer tax credits in the second quarter of 2010. The National Association of Realtors (NAR) estimated a 30% drop in sales, and our firm came up with a similar estimate while analyzing Manhattan Beach pending home sales in June. We are happy to announce that the market beat our expectations and continued to rally through the month of July. [...]
Insuring high value real estate, or luxury homes, is becoming more complicated and detailed as we experience recent fires and an economic down turn. Policyholders should review their homeowner’s coverage with their Agent or Broker at least once a year. [...]
Luxury home buyers should understand that their segment of the mortgage market has some key differences from the mainstream lending market. Getting a multimillion dollar loan means going outside the government-sponsored FHA conforming loan network, stricter credit standards, higher down payment requirements, and a limit to the amount of interest borrowers can write off against income tax liability. Here are some things that luxury home buyers should consider before signing their next purchase contract. [...]
The Manhattan Beach real estate market kicked butt through the end of June! The second quarter (Q2) of 2010 saw Manhattan Beach single family residence (SFR) prices rise 8% compared to the same period last year, with 2.5% price gains in the month of June, comparing 2010 to 2009. [...]
The National Association of Realtors (NAR) announced a 30% drop in pending home sales in May, as home buyer tax credits expired. Given that Manhattan Beach real estate ranks on the luxury end of the spectrum, how have expiration of the tax credit programs impacted Manhattan Beach pending home sales? [...]
In an attempt to balance lending risks with credit-driven economic growth, Congress is mulling a Financial Reform bill that has the potential to hinder the VA Home Loan Guaranty program. Sen. Jeff Merkley (D-Oregon) proposed an amendment to the gargantuan Financial Services bill mainly to rid the market of loans that do not have sufficient documentation and loans with terms that made it difficult for borrowers to pay off in the long run. Such loans contributed heavily to the mortgage crisis. [...]
The commercial real estate (CRE) market peaked in 2007, and has been in a prolonged process of collapse ever since. This is true for asset valuations across CRE property types, equity risk premiums, and mortgage issuance. In a continuation of the CRE saga, Bank of America announced that over half of commercial mortgages have been unable to refinance as notes reach maturity. [...]
Conventional [government] logic is that low interest rates, capital subsidies, and encouraging words of home ownership bliss will spur housing demand. While this is certainly true under certain conditions, adults soon learn in economic reality that there is no free lunch in the long run. With new home buyer subsidies fading across the country, home sales have hit a wall that even prolonged access to cheap money cannot surmount. [...]
With nearly $1.24 trillion in commercial real estate (CRE) loans that need to be refinanced over the next four years, commercial real estate firms are gearing up to raise capital through equity markets. About a dozen ambitious IPO deals are in the pipelines, according to Thomson Reuters research. Should investors jump on the opportunity to buy into CRE firms, or is this a last ditch effort for failing companies to ditch their toxic debt? [...]
Commercial real estate (CRE) risk premiums are now at an 18-year high, with capitalization rates nearly 7% higher than the 10-year treasury yield. Investors are telling us that CRE is increasingly risky, but does that mean that now is the time to buy, or should we expect further declines? [...]