Investing In Real Estate? Need a Realtor?
02 June, 2010
Realtors Thank Homebuyer Tax Credit For Increasing Sales
23 November, 2009
Realtors Thank Homebuyer Tax Credit For Increasing Sales
Posted: 5:36 pm EST November 23, 2009Updated: 5:54 pm EST November 23, 2009
GASTONIA, N.C. — Rebounding home sales across the nation mean good things for local real estate agents.October home sales hit 10.1 percent, which is the highest it’s been in two-and-a-half years.Realtors said the homebuyer tax credit is what’s helping.The ringing phone is a sweet sound to Realtor Diane Daugherty.“It’s a customer coming out looking,” she said.She is on her way to selling six homes this month in the Willow Creek subdivision.That’s big, because last month she sold three, and the month before she sold two.She sees what real estate agents nationwide are seeing: a rebounding market.“This one will come back big and we know it and everybody knows it,” Daugherty said. “We can see it.”Last month, sales nationwide rose to the highest level since February 2007, before the market crunch last year and the economy began to collapse.Daugherty thanks the new home buyers tax credit advertised at the entrance of Willow Creek.“They don’t know about it and then they say, ‘Oh man. I can get $8,000,’” she said.Daugherty is one of the real estate agents who wrote to Washington, begging lawmakers to extend the incentive that was supposed to end on Nov. 31.A board in the model home reads: “Good news. The tax credit has been extended.”Buyers now have until April 30.“This is huge,” Daugherty said.
Copyright 2009 by WSOCTV.com. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
4 Techniques To Sell Your House Fast!
30 July, 2009
4 Techniques To Sell
We all have reasons why we want to sell our houses fast. Whatever it is, we just need several hints to accomplish this very thing. Here are the following techniques to help you sell your house fast:
1. Seek for the assistance of a high-caliber real estate agent
There are lots of real estate brokers and independent agents that could help sell your house fast. However too few truly can sell it in a winning pace that would satisfy both your needs. Your first stop to finding one is to seek for the more credible agencies that specialize in your neighborhood. From your choices, trim down the actual agency that would work for you, remember that both of you are transparent in the agreements and everything in between.
An agent or a broker is a must when selling your properties unless you are skilled in this particular field or you are an agent yourself. There are lots of complex regulations and schemes in this industry that you cannot let just another person to handle your business. Ensure yourself of a good service and quality transactions. It is not enough that someone is there to work for you. What you should be looking after for is that someone’s there to sell the house for you.
2. Make the price right.
Sellers often have the tendency to overrate and underrate their properties. Both ways, you will lose much.
When you quote the property too high, the initial effect is to discourage buyers from entertaining your offers. On the other hand, when the price is too low, you are likely to face a lose-lose situation where you earned nothing in return but you still have to cover the expenses for taxes, unforeseen fees, and others.
In this regard, you have to hire an agent that could easily provide the reasonable price for your property. Most real estate agents have the full knowledge of the pricing in a neighborhood. Be sure to get in contact with only the best since they are the most reliable people in the industry.
3. Make your home inviting to new owners
A common mistake among homeowners is to package the house including the clutter. Well, in most cases this is inevitable.
People typically become too much attached with their homes that they fail to see that there are things that must be taken away from the house during sale. For example, the sentimental value that a family picture may have could repel buyers from becoming interested in your house.
The principle in selling a house is to make it amiable with the new owners. Remember that it is no longer your house, it will soon become another person’s home. Thus, your mementos, awards, picture and everything that reminds you as the past homeowner must be taken away and packed somewhere away from your house.
4. If nothing works, then rent it.
Unless your house is ideally matched with somebody else’s picture, price and all other criteria of a house, it cannot be sold so easily. In this case, it’s best that you have your house rented for a while. This would help cover all costs while you are waiting for a buyer to come by. However, you must make a clear arrangement with your renters regarding the availability of showing the house to prospect buyers.
By – Mario Churchill
Yes I would Like A Realtor To Contact Me! – Click Here!
Frequently Asked Questions About the Home Buyer Tax Credit!
30 July, 2009
Frequently Asked Questions About the Home Buyer Tax Credit!
The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009.
The following questions and answers provide basic information about the tax credit. If you have more specific questions, we strongly encourage you to consult a qualified tax advisor or legal professional about your unique situation.
- Who is eligible to claim the tax credit?
- What is the definition of a first-time home buyer?
- How is the amount of the tax credit determined?
- Are there any income limits for claiming the tax credit?
- What is “modified adjusted gross income”?
- If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
- Can you give me an example of how the partial tax credit is determined?
- How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008?
- How do I claim the tax credit? Do I need to complete a form or application?
- What types of homes will qualify for the tax credit?
- I read that the tax credit is “refundable.” What does that mean?
- I purchased a home in early 2009 and have already filed to receive the $7,500 tax credit on my 2008 tax returns. How can I claim the new $8,000 tax credit instead?
- Instead of buying a new home from a home builder, I hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?
- Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?
- I live in the District of Columbia. Can I claim both the Washington, D.C. first-time home buyer credit and this new credit?
- I am not a U.S. citizen. Can I claim the tax credit?
- Is a tax credit the same as a tax deduction?
- I bought a home in 2008. Do I qualify for this credit?
- Is there any way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 tax return?
- The Secretary of Housing and Urban Development has announced that HUD will allow “monetization” of the tax credit. What does that mean?
- If I’m qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?
- For a home purchase in 2009, can I choose whether to treat the purchase as occurring in 2008 or 2009, depending on in which year my credit amount is the largest?
- Who is eligible to claim the tax credit?
First-time home buyers purchasing any kind of home—new or resale—are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after January 1, 2009 and before December 1, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the home owner. - What is the definition of a first-time home buyer?
The law defines “first-time home buyer” as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. However, unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.
- How is the amount of the tax credit determined?
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000. - Are there any income limits for claiming the tax credit?
Yes. The income limit for single taxpayers is $75,000; the limit is $150,000 for married taxpayers filing a joint return. The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. The phaseout range for the tax credit program is equal to $20,000. That is, the tax credit amount is reduced to zero for taxpayers with MAGI of more than $95,000 (single) or $170,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts. - What is “modified adjusted gross income”?
Modified adjusted gross income or MAGI is defined by the IRS. To find it, a taxpayer must first determine “adjusted gross income” or AGI. AGI is total income for a year minus certain deductions (known as “adjustments” or “above-the-line deductions”), but before itemized deductions from Schedule A or personal exemptions are subtracted. On Forms 1040 and 1040A, AGI is the last number on page 1 and first number on page 2 of the form. For Form 1040-EZ, AGI appears on line 4 (as of 2007). Note that AGI includes all forms of income including wages, salaries, interest income, dividends and capital gains.To determine modified adjusted gross income (MAGI), add to AGI certain amounts of foreign-earned income. See IRS Form 5405 for more details.
- If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
Possibly. It depends on your income. Partial credits of less than $8,000 are available for some taxpayers whose MAGI exceeds the phaseout limits. - Can you give me an example of how the partial tax credit is determined?
Just as an example, assume that a married couple has a modified adjusted gross income of $160,000. The applicable phaseout to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by the phaseout range of $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time home buyer tax credit that is available to this couple, multiply $8,000 by 0.5. The result is $4,000.Here’s another example: assume that an individual home buyer has a modified adjusted gross income of $88,000. The buyer’s income exceeds $75,000 by $13,000. Dividing $13,000 by the phaseout range of $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,800.
Please remember that these examples are intended to provide a general idea of how the tax credit might be applied in different circumstances. You should always consult your tax advisor for information relating to your specific circumstances.
- How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008?
The most significant difference is that this tax credit does not have to be repaid. Because it had to be repaid, the previous “credit” was essentially an interest-free loan. This tax incentive is a true tax credit. However, home buyers must use the residence as a principal residence for at least three years or face recapture of the tax credit amount. Certain exceptions apply. - How do I claim the tax credit? Do I need to complete a form or application?
Participating in the tax credit program is easy. You claim the tax credit on your federal income tax return. Specifically, home buyers should complete IRS Form 5405 to determine their tax credit amount, and then claim this amount on Line 69 of their 1040 income tax return. No other applications or forms are required, and no pre-approval is necessary. However, you will want to be sure that you qualify for the credit under the income limits and first-time home buyer tests. Note that you cannot claim the credit on Form 5405 for an intended purchase for some future date; it must be a completed purchase. - What types of homes will qualify for the tax credit?
Any home that will be used as a principal residence will qualify for the credit. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats. The definition of principal residence is identical to the one used to determine whether you may qualify for the $250,000 / $500,000 capital gain tax exclusion for principal residences. - I read that the tax credit is “refundable.” What does that mean?
The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit.For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Suppose now that the taxpayer qualified for the $8,000 home buyer tax credit. As a result, the taxpayer would receive a check for $7,000 ($8,000 minus the $1,000 owed).
- I purchased a home in early 2009 and have already filed to receive the $7,500 tax credit on my 2008 tax returns. How can I claim the new $8,000 tax credit instead?
Home buyers in this situation may file an amended 2008 tax return with a 1040X form. You should consult with a tax advisor to ensure you file this return properly. - Instead of buying a new home from a home builder, I hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?
Yes. For the purposes of the home buyer tax credit, a principal residence that is constructed by the home owner is treated by the tax code as having been “purchased” on the date the owner first occupies the house. In this situation, the date of first occupancy must be on or after January 1, 2009 and before December 1, 2009.In contrast, for newly-constructed homes bought from a home builder, eligibility for the tax credit is determined by the settlement date.
- Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?
Yes. The tax credit can be combined with the MRB home buyer program. Note that first-time home buyers who purchased a home in 2008 may not claim the tax credit if they are participating in an MRB program. - I live in the District of Columbia. Can I claim both the Washington, D.C. first-time home buyer credit and this new credit?
No. You can claim only one. - I am not a U.S. citizen. Can I claim the tax credit?
Maybe. Anyone who is not a nonresident alien (as defined by the IRS), who has not owned a principal residence in the previous three years and who meets the income limits test may claim the tax credit for a qualified home purchase. The IRS provides a definition of “nonresident alien” in IRS Publication 519. - Is a tax credit the same as a tax deduction?
No. A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $8,000 in income taxes and who receives an $8,000 tax credit would owe nothing to the IRS.A tax deduction is subtracted from the amount of income that is taxed. Using the same example, assume the taxpayer is in the 15 percent tax bracket and owes $8,000 in income taxes. If the taxpayer receives an $8,000 deduction, the taxpayer’s tax liability would be reduced by $1,200 (15 percent of $8,000), or lowered from $8,000 to $6,800.
- I bought a home in 2008. Do I qualify for this credit?
No, but if you purchased your first home between April 9, 2008 and January 1, 2009, you may qualify for a different tax credit. Please consult with your tax advisor for more information. - Is there any way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 tax return?
Yes. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the downpayment.Buyers should adjust their withholding amount on their W-4 via their employer or through their quarterly estimated tax payment. IRS Publication 919 contains rules and guidelines for income tax withholding. Prospective home buyers should note that if income tax withholding is reduced and the tax credit qualified purchase does not occur, then the individual would be liable for repayment to the IRS of income tax and possible interest charges and penalties.
Further, rule changes made as part of the economic stimulus legislation allow home buyers to claim the tax credit and participate in a program financed by tax-exempt bonds. Some state housing finance agencies have introduced programs that provide short-term credit acceleration loans that may be used to fund a downpayment. Prospective home buyers should inquire with their state housing finance agency to determine the availability of such a program in their community.
The National Council of State Housing Agencies (NCSHA) has compiled a list of such programs, which can be found here.
- The Secretary of Housing and Urban Development has announced that HUD will allow “monetization” of the tax credit. What does that mean?
It means that HUD will allow buyers to apply their anticipated tax credit toward their home purchase immediately rather than waiting until they file their 2009 income taxes to receive a refund. These funds may be used for certain downpayment and closing cost expenses.Under the guidelines announced by HUD, non-profits and FHA-approved lenders will be allowed to give home buyers short-term loans of up to $8,000.
The guidelines also allow longer term loans secured by second liens to be used by government agencies, such as state housing finance agencies, to facilitate home sales.
Housing finance agencies and other government entities may issue tax credit loans, the funds of which home buyers may use to satisfy the FHA 3.5% downpayment requirement.
In addition, approved FHA lenders will also be able to purchase a home buyer’s anticipated tax credit to pay closing costs and downpayment costs above the 3.5% downpayment that is required for FHA-insured homes.
More information about the guidelines is available on the NAHB web site. Read the HUD mortgagee letter (pdf) and an explanation of the FHA Mortgagee Letter on Tax Credit Monetization (pdf). An FAQ about monetization (pdf) is available at the NAHB web site.
- If I’m qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?
Yes. The law allows taxpayers to choose (”elect”) to treat qualified home purchases in 2009 as if the purchase occurred on December 31, 2008. This means that the 2008 income limit (MAGI) applies and the election accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns). A benefit of this election is that a home buyer in 2009 will know their 2008 MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.Taxpayers buying a home who wish to claim it on their 2008 tax return, but who have already submitted their 2008 return to the IRS, may file an amended 2008 return claiming the tax credit. You should consult with a tax professional to determine how to arrange this.
- For a home purchase in 2009, can I choose whether to treat the purchase as occurring in 2008 or 2009, depending on in which year my credit amount is the largest?
Yes. If the applicable income phaseout would reduce your home buyer tax credit amount in 2009 and a larger credit would be available using the 2008 MAGI amounts, then you can choose the year that yields the largest credit amount.
Yes I would Like A Realtor To Contact Me! – Click Here!
Real Estate Sales Agents: How To Choose One That Would Work Well For You!
30 July, 2009
Real Estate Sales Agents: How To Choose One That Would Work Well For You!
There are so many real estate agents who are willing to work for you
out there. But finding the one that would work out things well for you
is another story. The selection is often the most difficult. While
there maybe lots of brokers and agents that are more than willing to
offer their services, you can never be sure of their efficiency unless
you have put them on trial.
Thus, it is best to find a real estate sales agent that could really spin things in his own hands and
give you the best of what your property and the other conditions could present.
The performance of a real estate sales agent is defined by various
factors. For example their formal education and the years of training
they have gone through could have massive effects on your guarantee for
the best deals. However, those two factors do not tell everything.
Certain circumstances could also promote their best performance and
other aspects of real estate sales could contribute largely to the
outcome of your sale.
Before you get on with your search for
the real estate sales agents of the topmost caliber, you must
understand first the terms that are often used interchangeably in the
business.
Real estate sales agent
and brokers are different from each other. The brokers are more like
firms that offer the services of a number of agents who are directly
connected in their company as freelancers or employees. The agents,
however, are the main workforce of such real estate brokers. As implied
in our definition above, they may be working solo or they are being
managed by certain companies or firms that have larger scope of
services. A realtor, on the other hand, is not so distinct with real
estate sales agents. Nevertheless, they still differ since the Realtors
are those who have additional certification coming from national
Association of Realtors.
Having said that, we can then
assume that you have a more defined criteria on who or what to choose
when looking for the services of someone or an institution to sell or
promote the sales of your property.
But the titles are not so
affective of the character your real estate sales agent should have. It
is true that it’s not typically easy to find extremely dedicated and
committed people to work for your property. They come in scarce number
but are nevertheless worth searching for. Here are some ideas for you
to help you in seeking for the services of am efficient and effective
real estate sales agent:
Remember that there are various
types of institutions that offer you the services for real estate
sales. But the titles should not be your main point for judging which
firm or person you should be consulting with. What matters most is that
you select the best performing people to secure the easy selling of
your property.
Consider also the type of representation you
are after for. Typically, real estate sales are the seller’s agents.
They only represent the bets interest of their clients and go no
further than that unless they want to redirect such interest towards
more productive and better transactions.
It will be worth it
if you are going to do some legwork. While most real estate sales
agents and brokers have websites that you can easily access, there is
nothing far better than personally contacting these people to give you
your advantages and disadvantages once your contract begins.
We have mentioned only a few points you must look into to help you in
your search for the best-yielding real estate sales and firms.
By Mario Churchill
To the survivors go the spoils of wrecked housing market
13 May, 2010
To the survivors go the spoils of wrecked housing market
By DUANE MARSTELLER
McClatchy Newspapers
Related:
http://www.bradenton.com/
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Tight credit stymies homeowners with best intentions to build green
For foreclosure redeveloper, success comes slowly and surely
MANATEE, Fla. – Residential developers and homebuilders who survived the housing bust now are feasting on the remains of those who didn’t.
They’ve been on a buying spree, using cash savings to acquire finished, but unbuilt lots and subdivisions that have been stalled or lost to foreclosure or bankruptcy. They’re paying up to 75 percent off peak land prices during the housing boom, and planning to succeed where others have struggled or failed.
“It’s survival of the fittest among the developer set,” said Jack McCabe, a real-estate analyst and consultant in Deerfield Beach, Fla.
Observers say it is happening throughout Florida, but especially in regions where raw land generally is less expensive and in greater supply.
In Manatee County, D.R. Horton homes, Medallion Homes and Minto Communities have been among the most active buyers.
Horton, a national homebuilder from Fort Worth, Texas, has purchased 170 lots and has contracts or options on 110 more in several developments. Local builder Medallion has paid $9.26 million for finished lots in four subdivisions. And Minto, a subsidiary of a private Canadian firm, has bought an undeveloped condominium project on Perico Island and several lots in Lakewood Ranch’s Country Club area.
All say discounted land prices attracted them, but it was the local housing market’s long-term potential that made them buy.
“We wanted to expand our presence in Florida and take advantage of the lower land costs,” said Mike Belmont, executive vice president of Minto’s West Central Florida region. “Plus, it’s a great place to establish a new market.”
Minto’s Florida operations were focused on the state’s east coast until September, when it paid $8 million for St. Joe Co.’s stalled SevenShores project and $2 million for an adjacent marina property. St. Joe had approval for 686 condo units, but suspended the project, first because of slow pre-sales and later, the housing slump.
Minto is taking its time with its new acquisition: It won’t be taking pre-construction orders until either late this year or in early 2011, Belmont said.
It is moving faster on a dozen Lakewood Ranch Country Club lots it purchased for more than $1.1 million in two separate transactions late last year. Model homes have already been built on the property.
Horton also entered the Manatee market in September, when it paid $165,000 for four lots in the GreyHawk Landing development in East Manatee.
Since then, it’s bought about 170 lots – and between pending contracts and options to buy more lots, that number could exceed 270. Those purchases have cost at least $3.38 million, according to public records.
All are being marketed, and Horton is about to close on two more deals for another 130 or so lots.
The builder had been eyeing Manatee for a long time, said Darren Saltzberg, sales and marketing vice president for the company’s Tampa-Sarasota region.
“We’ve been up in Tampa for 5 1/2 years, but we couldn’t get down to Manatee and Sarasota until last year because of the lot prices,” he said. “Now they’ve come down significantly. We’re trying to take advantage of the market.”
So is Medallion, a local builder since 1984.
In the past year, it has bought more than 350 lots in the area. And it might not be done buying.
“We are cautiously looking for opportunities,” said Pete Logan, Medallion’s vice president. “Right now you’re able to buy a finished lot for less than what it costs to develop it.”
Builders and developers now on the lookout for acquisitions share several characteristics, analysts said.
They survived the downturn by slashing operating expenses, lowering home prices and reducing product sizes. They also adjusted their business plans to target first-time homebuyers, a move that was boosted by the recently expired federal tax credit.
And they conserved cash. With commercial credit and investment still somewhat scarce, only the well-capitalized can finance land acquisitions in the current market, analysts said.
For example, Horton had $1.8 billion in unrestricted cash at the end of its most recent quarter.
“Those who are positioned with enough cash to pick up what is really raw material are doing so,” said Robert Dunham, a real-estate market analyst and certified appraiser in St. Petersburg, Fla. “They’re betting that they’ll be positioned, cost-wise and timing-wise, to be ready to hit the market with a developed lot and home when it picks up. The bigger players are thinking that time must be close.”
McCabe said something else might be driving the buying spree: Amendment 4. The state constitutional amendment would require voter approval of any changes to county and municipal land-use plans.
Developers and builders contend the measure will stifle development, but are hedging their bets if it passes, McCabe said.
“They’re all trying to get in before that door slams shut on them,” he said. “You’re going to see a major rush of developers trying to get their entitlements prior to the vote on Amendment 4.”
Posted on Thu, May. 13, 2010 07:16 AM
Read more: http://www.kansascity.com/2010/05/13/1943129/to-the-survivors-go-the-spoils.html#ixzz0nsa1m0Pe
Properst Files for Bankruptcy on Property Market Drop
13 May, 2010
Friday May 14, 2010
Bloomberg
Properst Files for Bankruptcy on Property Market Drop (Update2)
May 13, 2010, 11:45 PM EDT
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(Updates with comments from analyst in fourth paragraph.)
By Tomoko Yamazaki and Katsuyo Kuwako
May 14 (Bloomberg) — Properst Co., the Japanese property developer that had Madonna promote high-rise apartment sales in central Tokyo, filed for bankruptcy protection as the credit crisis pushed condominium sales to almost two-decade lows.
Properst’s liabilities totaled 55.4 billion yen ($597 million) as credit dried up after Lehman Brothers Holdings Inc. collapsed, leading condominium prices lower and denting demand, the Tokyo-based firm said in a statement today. The company will maintain its stock listing on the Jasdaq market as it undergoes the bankruptcy process, in part through capital raisings via private placement and debt equity swaps, it said.
New condominium sales in greater Tokyo last year fell to the lowest level in 17 years, commercial land prices declined to the lowest in at least 36 years, and real estate firms accounted for eight of the 10 biggest bankruptcies among listed Japanese firms in 2009. The filing marks the second by a listed real estate company this year amid a continued deterioration in Japan’s property market.
“Mid-to-small sized real estate firms are still struggling to sell condominiums,” said Takashi Ishizawa, an analyst at Mizuho Securities Co. in Tokyo. “I expect further consolidation, especially among smaller property firms going forward.”
Properst shares were poised to fall by their daily limit of 300 yen to 980 yen at the lunch break in Tokyo. The stock was untraded as offers outnumbered bids. It slid 24 percent yesterday.
Madonna
Established in 1987, Properst has focused its business on property developments in the metropolitan area ranging from small-sized apartments to condominiums in high-rise buildings.
Madonna was in advertisements for the Brillia Mare Ariake luxury condominiums in Tokyo Bay that went on sale in 2007.
Commercial RE Co., a real estate management company whose largest stakeholder is Goldman Sachs Group Inc., filed for bankruptcy protection on May 6 with 15 billion yen in liabilities.
New condominium sales in the Tokyo area totaled 36,376 units in 2009, the lowest in 17 years, and compared with the peak of 95,635 units sold in 2000, according to the Real Estate Economic Research Institute.
Japanese commercial land prices declined 6.1 percent in 2009, more than the 4.7 percent drop a year earlier, the Ministry of Land, Infrastructure, Transport and Tourism said in a report released in March. Values are at their lowest since the ministry began collecting comparable data in 1974.
–With assistance from Tak Kumakura in Tokyo. Editors: Fergus Maguire, Andreea Papuc
To contact the reporters on this story: Tomoko Yamazaki in Tokyo at tyamazaki@bloomberg.net; Katsuyo Kuwako in Tokyo at kkuwako@bloomberg.net
To contact the editor responsible for this story: Andreea Papuc at apapuc1@bloomberg.net
Existing home sales not as weak as reported, Realtors say
13 May, 2010
Existing home sales not as weak as reported, Realtors say
May 13, 2010 07:01:00 PM
SCARLET SIMS / News Herald Writer
PANAMA CITY — Bay County existing home sales continued to slump while sales rose 24 percent statewide, according to Florida Realtors association numbers released this week. Local Realtors say those numbers are misleading.
“We’re as busy now as we were during the boom — it’s just cash buying as opposed to financing,” Overstreet realty owner Connie Overstreet said.
Bay County saw existing home sales and prices increase dramatically about 2005, but sales faltered when the worst recession in decades collapsed the state’s real estate market. Bay County sales dried up for the last 18 months, Prudential Shimmering Sands Realtor Art Lester said.
“Last year was horrendous,” Lester said.
This year, sales are getting better, Realtors say. Prices are falling less slowly and investors are coming back.
Multiple Listing Service data shows the first three months of this year are up about 6 percent over 2009, Overstreet said. April numbers show even better sales — up more than 20 percent in combined total sales, said Charlie Commander, Realtor at Century 21 Commander real estate. Sales in April were 285, compared to 236 the same time a year ago, he said.
Florida Realtors will release April numbers later this month, but Metro Market Trends, a company that tracks real estate, reported April sales rose from 139 last year to 200 this year.
Realtors disagree with the Florida Realtors report that shows Bay County is one of only two metro areas to show a slump in existing home sales for the first quarter of this year. The report shows Bay County sales were down 4 percent from the 243 sales seen last year. Sales were weak compared to surrounding areas, like Fort Walton Beach, where 578 existing homes sold the first quarter compared to 233 sales in Bay County.
Metro Market reported existing home sales dropped nearly 7 percent in January and were down about 2 percent in February. Sales picked up to nearly 8 percent in March but not enough to offset earlier declines.
Bay County Realtors Association President Darren Haiman said the Florida Realtors’ numbers are too narrow in scope to show what is really happening. The numbers don’t include homes like manufactured homes or duplexes, he said.
“Our numbers are much, much better than have been reported,” Haiman said.
Sales are actually up this quarter over the same time last year by about 5.7 percent, Haiman said.
Florida Realtors spokeswoman Marla Martin wrote in an e-mail she thought the association’s numbers are accurate. The numbers are based on a survey of MLS sales.
Realtors say 2010 will be a better year for the real estate market. Home prices are falling more slowly, inventory is shrinking and the real estate market is stabilizing, Commander said. Interest remains low, banks are loosening up on credit and the federal government unveiled a new plan to expedite sales of distressed property this month.
“I think we’ll be strong during the remainder of the year,” Overstreet said.
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Florida Sales Report – First Quarter
Existing Homes
• Bay County 233, 2010; 243, 2009
• Florida 38,846, 2010; 31,410, 2009
Condominium Sales
• Bay County – 146, 2010; 95, 2009
• Florida – 16,897, 2010; 10,131, 2009
Source: Florida Realtors
“Restoring the Balance of Public and Private Capital in Mortgage Finance”
13 May, 2010
Author : National Association of Realtors
Category : Press Release
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WASHINGTON, DC — 05/13/10 — The Federal Housing Administration plays a key role in today’s housing market, but changes are necessary to support recovery in the real estate market and general economy. That was the focus of today’s “Restoring the Balance of Public and Private Capital in Mortgage Finance” session, part of a three-day summit during the Realtors® Midyear Legislative Meetings & Trade Expo here this week.
“Realtors® are working to reshape real estate in America, and FHA’s role and prominence have shifted significantly over the past few years,” said National Association of Realtors® President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz. “Many first-time home buyers rely on FHA loans to purchase a home, and because of its vital role in helping families achieve the dream of homeownership, FHA must be strengthened and supported. At the same time, private financing must also return to support a full recovery.”
In 2009, more than 50 percent of first-time buyers used FHA to finance their home purchase, and nearly 80 percent of FHA’s purchase loans were to first-time home buyers. FHA also serves those who need to refinance out of risky adjustable-rate mortgages or subprime loans with high interest rates. In 2009, approximately 835,000 borrowers refinanced into lower interest rate FHA-insured loans, saving them an estimated $1.3 billion.
Vicki Bott, deputy assistant secretary for Single Family Housing, U.S. Department of Housing and Urban Development, acknowledged FHA’s current significance in mortgage financing. “FHA has become a vibrant part of the market, but our goal is not to build market share, nor is it to retract from the market. We need to support the housing market, but we also support improving market liquidity and bringing private involvement back to the market,” she said.
Bott joined panelists Steve Adamo, president and CEO, Weichert Financial Services; Scott Griffith, ERA Griffith Realty; and David Katkov, president and EVP, PMI Mortgage Insurance Co. Realtors® voiced their concerns with current lending challenges, including limited liquidity in the resort and second-home market and appraisal concerns related to the Home Valuation Code of Conduct. Panelists acknowledged there was still progress to be made, but that FHA had played a valuable role in averting larger problems.
“Thank God FHA was there,” said Katkov. “FHA stepped in, as they should, but as the market heals, the balance should be restored.” Katkov described an ideal mortgage insurance balance as 50-60 percent private sector, 35 percent FHA, with the remaining portion covered by loans guaranteed by the Veterans Administration.
“As the leading advocate for homeownership, NAR strongly supports FHA’s single- and multifamily mortgage insurance programs,” said Golder. “Yesterday, Realtors® visited Capitol Hill to tell Congress to strengthen FHA while still allowing for access to safe, affordable financing by responsible borrowers, and to make the higher loan limits permanent to prevent dramatic decreases in the availability of affordable, safe financing nationwide.”
Decreasing the current loan limits would reduce the availability of mortgages in 612 counties in 40 states, plus the District of Columbia. The resulting average limit reduction of more than $50,000 would have a dramatic impact on liquidity and could halt the housing recovery, according to NAR.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.
Information about NAR is available at www.realtor.org. News releases are posted in the Web site’s “News Media” section in the NAR Media Center.
REALTOR® is a registered collective membership mark which may be used only by real estate professionals who are members of the NATIONAL ASSOCIATION OF RealtorS® and subscribe to its strict Code of Ethics. Not all real estate agents are REALTORS®. All REALTORS® are members of NAR.
