Christopher Garlin Christopher Garlin, co-founder of The RCG Companies, LLC, is a seasoned and accomplished real estate executive with more than 20 years of diverse industry experience that spans real estate development, investment and finance. More...
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Regina Mincey-Garlin Regina Mincey-Garlin is an experienced corporate executive turned entrepreneur. Ms. Garlin co-founded the RCG Companies, LLC, and heads up its mortgage broker affiliate RCG Mortgage Solutions, LLC. She has an in-depth knowledge of the mortgage industry and its myriad of lending products and programs More...
Housing built for lower-income residents often is seen as doing only one thing: giving shelter to people who can't afford what the market demands.
Three new projects in San Francisco show how narrow that view can be. Not only does each serve a different segment of the population, they connect with the larger city in ways that will benefit many more people than the residents inside.
Two buildings are in the Tenderloin, bringing a recreational center and architectural flair to that long-beleaguered neighborhood. The third is in the Mission District, where housing and work spaces overlap with an ease that offers a model for the city's changing industrial landscape.
The literal standout is a 14-story tower that rises one block west of Hallidie Plaza and premieres Oct. 26 with a block party hosted by Glide Memorial Church, one of the developers.
The housing is straightforward, with 81 apartments ranging from one to four bedrooms, but the design is playful and rich. Along Mason the eight-story base is deep red with a woodsy grain, while irregularly stacked bays are accented by panels of blue, yellow and orange. A comparatively demure tower then pulls back and climbs six stories, making room for a ninth-floor outdoor lounge and tenant garden.
Poetic tiles
The bold look is unusual for the Tenderloin, where many blocks are lined with weary residential hotels that saw their best days decades ago (though, in a heartening trend, several have been restored by nonprofit developers in recent years). Also unusual are such materials as the resin panels that form the red wall, or the silver porcelain tiles at ground level that are cast with poetry conceived by artist Mildred Howard and poet Janice Mirikitani.
Designer Rod Henmi of Michael Willis Architects says he drew on two sources for inspiration: Glide's jubilant worship services and the textured patterns of the Gee's Bend Quilters Collective, whose work was exhibited in 2006 at the M.H. de Young Memorial Museum.
Uplift in daily life
It's a welcome splash and a symbolic one. In a neighborhood where many residents struggle to climb the economic ladder and others are down on their luck, the new housing affirms that uplift can be part of daily life.
There's also a spark to another new Tenderloin project, a unique combination of supportive housing and recreational space on Turk Street.
The name is almost as substantial as the building: The Ray & Joan Kroc Corps Community Center and Railton Place. The latter refers to 110 units of housing for a population that includes youth leaving foster care, adults recovering from substance abuse and formerly homeless veterans; the former is a Salvation Army facility complete with a full-court gymnasium, an indoor pool, computer labs and a dance studio.
Staccato shots of color
The nine-story building designed by Herman & Coliver: Architecture fills the middle of a block, and from the east it matches the monochromatic older buildings in the district. Up close? It shimmers with staccato notes of color - window frames in foam green, sky blue and pure yellow snap out from the shallow bays that zigzag above the street.
"The fact the sun comes blazing down the street in the afternoon is marvelous - I wanted to take advantage of it," said Bob Herman. The social function is equally important: "The colors re-emphasize the individuality of each resident."
Regardless of what's inside, Railton Place would be a case study in contextual modernism. But the recreational extras are like nothing else in the neighborhood - especially for Tenderloin youth who gain a fun, safe haven.
The most experimental newcomer is 2 miles to the south in a transitional corner of the Mission District.
It fills the block bounded by Alabama, Florida, 18th and 19th streets. And though residents won't move in until January, it's already clear the four-story structure designed by WRT/Solomon E.T.C. is ambitious urbanism as well as architecture with a streamlined yet monumental air.
The residential mix at what will be called Mosaica is complex enough: 93 family apartments, 24 studios for formerly homeless elders and 34 condominiums - 21 for first-time buyers, 13 priced at what the market will bear.
The extra twist involves 12 ground-floor spaces reserved for light industry or design production - most along a cobblestone alleyway that slices through the block and passes beneath portals that are 18 feet wide and 25 feet high, with two floors of apartments above.
Upstairs, downstairs
"It's a big, simple building, but it puts together an extremely interesting mix of uses," said architect Daniel Solomon. "They'll thrive off each other and reflect what this neighborhood is about."
Indeed, the work spaces with their glass garage doors are an outgrowth of the city's slow-moving Eastern Neighborhoods planning effort.
For much of the seven-year saga, planners proposed that new housing on former industrial land include blue-collar space at street level. That stipulation isn't as absolute now that the plan is before the Board of Supervisors, but Solomon and developer Citizens Housing Corp. crafted Mosaica with that duality in mind.
Whatever the back story, Mosaica's languid flow of different people doing different things has the potential to become a neighborhood centerpiece.
So does each Tenderloin project: Glide's housing for its vibrant presence, the Salvation Army complex for its array of offerings.
As different as these projects might be, they send the same message: Affordable housing needn't offer shelter alone. It can make everything around it better.[Show More]
0 Comments | Add Comment | Posted by Christopher Garlin on Friday, October 24, 2008
(RTTNews) - Industry data released on Wednesday showed that mortgage application volume jumped nearly 10 percent last week, as low 30-year mortgage rates sent investors rushing to refinance.
The Mortgage Bankers Association revealed that its market index of mortgage application volume climbed 9.5 percent on a seasonally adjusted basis for the week of September 5th. The Market Composite Index was 496.2 compared to 453.1 last week, with an adjustment for the Labor Day holiday.
On an unadjusted basis, the index declined 13.6 percent from last week, while it was down 24.4 percent compared with Labor Day week last year.
The Refinance Index jumped 15.4 percent to 1222.9. Without the Labor Day holiday adjustments, refinancing slipped 7.7 percent on the week. Accordingly, 36.3 percent of mortgage activity took place through refinancing last week, up from 34.0 percent in the previous week.
The conventional and government purchase indices saw mixed results, with the conventional purchase index jumping 14.4 percent and the government purchase index, largely made up of FHA loans, decreasing 8.7 percent.
The adjustable-rate mortgage (ARM) share of activity ticked down to 6.4 percent of total applications from 6.6 percent in the previous week.
Interest rates for 30-year fixed-rate mortgages decreased to 6.39 percent from 6.06 percent last week. Interest rates for 15-year fixed-rate mortgages also decreased to 5.73 percent from 5.96 percent. One-year ARMs also slipped, with their contrast interest rates hitting 7.00 percent compared to 7.11 percent in the previous week.
0 Comments | Add Comment | Wednesday, September 10, 2008
V.A.-Backed Loans on the Rise By BOB TEDESCHI New York Times June 29, 2008
IN recent years, military veterans followed the masses who migrated toward subprime loans, rather than avail themselves of government programs meant to provide them safer, if slightly more costly, alternatives.
Now the mortgage market is flowing back to normal, and veterans are making use of more traditional help. Demand for mortgages from the federal Department of Veterans Affairs is rising sharply, the V.A. said, and more growth is expected as conventional loan programs become more restrictive and home values fall back to earth.
“I think we’ll continue to see increasing volume,” said Judith Caden, who is director of the agency’s loan-guarantee service. “We’re getting the word out about the program more.”
In recent months, Ms. Caden said, the V.A. has been publicizing improvements to the program in military publications and elsewhere. But the rise in demand started before that. In 2007, the V.A. guaranteed 133,000 loans. It is on track to guarantee 150,000 to 180,000 mortgages in 2008.
The V.A. does not actually finance the loans — but leaves that to more than 42,000 lenders nationwide. It can, however, guarantee a loan on the borrower’s behalf, thereby diminishing the lenders’ risk and paving the way for interest rates that are much lower than the borrower would otherwise obtain.
Still, those interest rates are about one-quarter of a percentage point higher than prevailing market rates, because they often require no down payment. Borrowers who put less of their own money into a mortgage are riskier for lenders.
Active service members and veterans — who must have at least six years of military service or an honorable discharge to qualify — must also pay a financing fee of 0.5 percent to 3.3 percent of the loan; this fee is typically factored into the monthly payment. Surviving spouses of veterans may sometimes qualify, too. More details are available at www.homeloans.va.gov/.
The higher costs are balanced by the fact that a veteran may qualify for no down payment. That had become almost a hallmark of subprime mortgages during the recent mortgage bubble, which is why so many veterans shunned V.A. loans, Ms. Caden said. “With the subprime meltdown, we’re one of the only — if not the only — loan programs that’s a true no-down-payment loan,” she said.
A borrower makes payments to the lender, but many lenders have instituted a new system that quickly notifies the V.A. of late payments, Ms. Caden said. In those cases, the agency often works on the borrower’s behalf to renegotiate the loan and avoid foreclosure.
Demand for V.A. loans in New York, New Jersey and Connecticut has traditionally been hampered by high real estate prices, since the program covers only loans of $417,000 or lower. But with real estate prices in the New York region softening, demand has surged here, too.
In the first five months of this year, New York veterans have been obtaining these loans at a pace that is 28 percent greater than in the corresponding period last year. Demand in Connecticut is up 15 percent; in New Jersey, demand has jumped 42 percent.
Regina Garlin, an owner of RCG Mortgage in Montclair, N.J., said that V.A. loans are ideal for those who cannot get down-payment help from friends, family or other sources.
For veterans who can find such help, she said, loans guaranteed by the Federal Housing Administration are an even better alternative, since they often carry lower mortgage insurance premiums than V.A. loans.
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0 Comments | Add Comment | Monday, June 30, 2008
The New Federal Government's Legislation on Foreclosure: "The Bailout in Layman's Terms"(Category: Mortgage World)
After reading and re-reading the many news paper articles and web-blasts on Congresses bailout plan for the more than 2.6 million distressed Homeowners, I still find myself pondering the same question: Shouldn't this have already been enacted? The newest prediction as to when this new legislation, which aims to help restructure mortgages for roughly 400,000 at-risk families, will be signed into law, is sometime after the July 4th barbeque. What can these hopeful borrowers expect? Here is what I predict:
1. Lenders and loan servicers will identify borrowers who are in pre-foreclosure and foreclosure status and potentially meet the parameters of bill # H.R. 3221. 2. A mass mailing informing borrowers that because of H.R. 3221 they may qualify to have: 1) A portion of their debt removed and a new more affordable loan amount and or interest rate and loan term will be established as a new replacement loan. 3. Millions of borrowers who fit prediction number one will respond to these lenders and servicers. 4. After collecting various forms of financial information from the home-owners, Lenders and servicers will quickly realize that a huge portion of their sample population does not meet the parameters of H.R. 3221 due to one or all of the following:
a. Debt proportionally exceeds income when measured against maximum debt ratios or using the current Federal Housing Administration (F.H.A.) guidelines. b. The borrower's home is not a primary or an owner-occupied residence, a requirement of the F.H.A.. c. Employment for the primary wage earner is unstable (meaning 1. Borrower is self-employed for less than the required minimum time or, 2. Borrower has changed job paths since the current mortgage was originated and has held new employment for a limited amount of time). So, why enact a law with so many obvious holes? Well, because we desperately need it. But, here is what this legislation ought to allow:
A temporary allowance of a higher debt ratio which is more in line with current United States Households
A 12 month moratorium on the new up-front mortgage insurance, which will be elevated to 2.25% for certain borrows having lower fico scores. Currently the percentage stands at 1.5%. This will help to mitigate the higher debt ratios
A new minimum on self-employment or career path changes provided the borrower can show consistent income for the past 3 years, versus the standard 2 years currently enacted by F.H.A.
In order to enact any real change, we first need the current pending legislation signed into law. The hold-up appears to be President Bush's apprehension on disbursing a significant amount of funds into the hands of the States. These funds are earmarked in the current legislation as a funding tool to purchase abandoned and foreclosed properties, and prepare them for re-sale. This is reminiscent of our Government's bailout of the savings and loan and thrifts back in the early 1980's, a very expensive undertaking, which the American taxpayer is still burdened with.
Nevertheless, if Bear Stearns can benefit from our governments helping hand, then why can't the average American homeowner?
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0 Comments | Add Comment | Posted by Regina Mincey-Garlin on Sunday, June 29, 2008
When you are in default or at risk of default on your mortgage, your mortgage lender may agree to accept a mortgage payoff amount less than what is actually due to them. They do this to avoid being left “holding the house” as will be the case with a foreclosure.
When a property owner is financially overwrought with debt and can document this to a lender as proof that they can no longer pay their monthly mortgage, a lender may agree to what is called a Short Sale. If you are a seller, a short sale is likely to impair your credit; ironically, the damage is as bad as in the case of a foreclosure. You will very likely leave the final transaction with just your name in tact, no favorable profit to be found here. This often makes it a little harder to secure another place to live, so be sure to have this plan already in place.
The buyer of course gets the property at a reduced price- a reduced price which normally means, “as-is”. What happens to the bank? Well, the bank takes a loss, but the good news for them is that this loss may pale in comparison to a loss due to foreclosure.
A couple of questions to ask yourself before considering a short sale as a viable option? Have I completely exhausted all of my financial resources; will my request for a short sale be looked upon as a last resort? (The very last resort being a foreclosure of course) Have I filed for bankruptcy? If you have, a lender by law cannot pursue the collection of your mortgage debt as you have protected yourself with this bankruptcy filing.
When considering a short sale, consider this: 1. Identify all liens on the property 2. Calculate what’s due including any late payments of unpaid interest 3. Contact the lender 4. Complete the lenders short sale application 5. Speak to a market professional regarding the value of your property 6. Make your lender an offer-and negotiate 7. Close the transaction 8. Start over and re-build your credit
This entire process can get a little complicated, you may want to speak with an attorney or real estate professional familiar with the process, someone who can assist you in the execution of this transaction.
Regina Mincey-Garlin[Show More]
0 Comments | Add Comment | Posted by Regina Mincey-Garlin on Monday, June 09, 2008
“Besides, They’ll see how beautiful I am And be ashamed—
I, too, am America.” -Langston Hughes
As Barack Obama becomes the first African-American to have a real chance to become the President of the United States, these words of the great American poet Langston Hughes have struck me with particular resonance and begs the question. Has America, founded on the soaring rhythmic torrent of a flawed notion of freedom and equality, moved one-step closer to fulfilling her moral promise? I think the answer will emerge over the next few months as we mine the depths of emotions hidden deeply within our Nation’s soul.
As a man, Senator Obama is a talented politician skillfully navigating unrelenting storm swept political seas. As an ideal, his candidacy forces us to examine our beliefs, loves, hatreds, strengths and weaknesses; and the electability question is not our own but one formed centuries ago, made manifest through our unwillingness to wash away the ignorance that stains our democracy. The shadows that follow us on this journey are not our own but the souls of our ancestors, black and white, bound together, moving in step with our consciousness; waiting to be released from their common pain.
We as a Country need Barack Obama the ideal more than the man because once we are able to release the hate-forged chains that bind the fulfillment of our greater selves; the beauty of our common humanity will be unveiled. Many centuries ago, we as a Country, a nation built on the noblest of expectations, embarked on a great exodus from the canopied wilderness of our sin to fulfill a great covenant. Obama’s political quest represents a significant mile marker along the way.
STAMFORD, CT-A partnership of Jonathan Rose Cos. LLC and W&M Properties have broke ground on the first phase of the Metro Green Apartments project here, which will consist of 50 “green” affordable units to be built on property along Henry Street between Atlantic Street and Washington Boulevard near the Stamford Transportation Center. Fully built out, the Metro Green project will eventual consist of 238 mixed income rental and for-sale residences called Metro Green Residential and a 17-story 350,000-sf office building coined Metro Green. The first phase of the project will cost approximately $20 million to develop. Jonathan Rose officials say that the Metro Green Residential component is a candidate for LEED New Construction and Neighborhood Development certification by the US Green Building Council. “Metro Green will provide a green, environmentally-sensitive transition from the Stamford Transportation Center to the emerging, formerly industrial neighborhood in Stamford’s South End while preserving housing opportunities for existing residents in one of the few remaining affordable neighborhoods in Fairfield County,” said Stamford Mayor Dannel Malloy at the groundbreaking ceremony held on Wednesday.
“Metro Green is a model solution to high energy and transportation costs currently plaguing low income residents,” added Jonathan F.P. Rose, president of Jonathan Rose Cos. “By locating affordable housing within walking distance to a regional train line and a vibrant downtown, our residents will be spared the high price of gasoline, and by making the building green, they will benefit from lower energy costs for years to come. Among the “green” features at the Metro Green Residential development will be: a “rainwater harvesting system” that company officials explain will funnel water from the roof into storage tanks to be used for drip irrigation and filtered for use in washing machines located in the shared laundry room; a building envelope that includes a roof that reduces heat-island effect, high efficiency, operable double hung windows; individual heating and cooling units and gas-fired domestic water heaters in each apartment and a number of other energy reduction related amenities. Financing for Metro Green apartments was arranged through JPMorgan Chase, GE Capital, the Connecticut Housing Finance Authority and the City of Stamford. The balance of Metro Green’s residential and office developments are now in the final approval and planning stages. Connecticut Governor M. Jodi Rell reported on Tuesday that Metro Green Apartments is eligible for up to $2 million from the state’s Housing Trust Fund.
$20M Metro Green Apartments Breaks Ground By John Jordan[Show More]
Their plaintive scribblings painted a picture of first-time buyers chasing the American dream or growing families hungry for more space. The letters dripped with compliments for the property and ended with a plea for mercy (and a signed contract).
Today’s real estate market, however, calls for a different kind of letter, less a fuzzy valentine and more like a cold splash of water. It’s what you write to accompany a bid that is so far below the listing price that it cries out for explanation.
Dear Seller:
I’m writing to let you know that I would like to make a bid on your property. I love the area and am committed to buying a house nearby. And your home fits my needs.
But given that my offer is well below your asking price, I also feel I owe you an explanation.
First, consider the big picture. Nationwide, home prices in the first quarter of 2008 fell 14.1 percent compared with the same period a year earlier, according to the Standard & Poor’s/Case-Shiller U.S. National Home Price Index.
That’s the biggest decline in the 20-year history of the data. And just in case you’re wondering, during the housing downturn of the early 1990s, the decline was never worse than 2.8 percent.
Not only that, earlier this month, the National Association of Realtors pointed to the huge number of existing homes on the market. As of the end of April, the total number was 4.55 million. At the rate people are buying right now, that represents an 11.2 month supply.
So buyers have options right now. A lot of them. I’m no different. Your home is great, but it isn’t unique. Few homes are. I know this may be hard to hear, since you’ve spent years creating memories here. But you may be waiting a long time if you hope to find a buyer with the same emotional connection that you have.
My mindset is hardly unique. We’ve all been reading the headlines. The accompanying stories appear prominently in major newspapers and sit on the Web pages where people check their e-mail every day. Everyone sees them, and the psychic impact is real.
It will be tempting to view my low bid as an insult. Please don’t make that mistake. Your home is genuinely appealing, and I wouldn’t have written this note unless I was serious about buying it. Getting a firm offer in this market is an accomplishment. So congratulations!
Oh, and one more thing. You presumably need someplace to move. My guess is that you’ll find these same points compelling when it’s your turn to buy. You just might succeed in buying for a better price, too.
I look forward to hearing from you soon.
Yours Truly,
The Realist
Dear Buyer:
Thanks so much for your note. I’m truly glad that you like our home as much as we do. You’re right that my family and I have many great memories of this place, and we hope someday you will, too.
And I just want you to know that I’m not insulted in any way by your offer. The fact is, none of us are very good at buying and selling homes. We don’t do it often, and as much as we know we’re not supposed to let emotions get in the way, it’s hard not to. After all, few people buy or sell anything else as expensive as a home in their lifetimes.
That said, your offer disappointed me. You seem to believe that I’m not aware of how bad things are out there or that I’m in denial. But I do read the headlines, and I priced the house accordingly. I knew I might have to wait awhile to sell it.
I should point out that your data draws on what has already happened in the housing market. Instead, I’d ask you to consider what’s about to happen.
One big reason for the falling prices is that it’s harder to get mortgages. Lenders went from giving money to anyone with a pulse to demanding higher credit scores and larger down payments. All sorts of buyers simply couldn’t make the numbers work anymore.
I know you talked about having choices, but presumably we wouldn’t be engaging in this correspondence unless you liked my home best. Given that, I’d ask you to think about something: How often do you find a place that you can actually imagine living in? Sure, there’s a lot of other properties out there. But an increasing number are in foreclosure and probably have problems lurking within the walls. So don’t let fear of a falling market keep you out of a home that you truly want.
Please take another look at whatever mortgage calculator you’re using and see how your monthly payment will change if you brought your price up a bit. It almost certainly is not going to be enough to break you. But it may be enough to get us to a deal.
WASHINGTON (Reuters) - Prices of single-family homes plunged a record 14.1 percent in the first quarter from a year earlier, marking a pace five times faster than the last housing recession, data showed on Tuesday.The Standard & Poor's/Case Shiller composite index of 20 metropolitan areas fell 2.2 percent in March from February and plummeted a record 14.4 percent from a year ago."There are very few silver linings that one can see in the data," David Blitzer, chairman of S&P's index committee, said in a statement. Consumer confidence slumped to its lowest in 16 years in May as rising gasoline costs and falling home prices made Americans nervous about the future, the Conference Board said. But in April, sales of newly constructed single-family homes rose for the first time since October, Commerce Department data showed, and the inventory of new homes declined for the 12th straight month. U.S. stocks rose but then turned mixed after the data. The dollar extended gains versus the euro and the yen. Economists expected prices for the 20-city S&P/Case Shiller index to fall 2.0 percent on month and 14.0 percent from a year earlier, according to the median forecast in a Reuters survey. Falling home prices have become the scourge of the housing market that is seeing its worst downturn since the 1930s. Home values since last year have been dropping below balances owed on many mortgages, leaving borrowers with no equity and more likely to succumb to foreclosure. The crisis in foreclosures, which pressure prices even lower, has spurred numerous plans by regulators and lawmakers that aim to keep borrowers in their homes by forgiving a portion of their loan's principle.
Housing markets that grew the most during the housing boom, such as Las Vegas, Nevada and Miami, Florida, are leading the decline, S&P said.S&P said its composite index of 10 metropolitan areas declined 2.4 percent in March, for a record 15.3 percent year-over-year drop.
NEW HOME SALES RISE
U.S. sales of newly constructed single-family homes rose 3.3 percent in April to a 526,000 annual rate but they were down 42 percent from a year ago, which was the largest year-over-year drop in nearly 27 years, Commerce Department data on Tuesday showed. The Commerce Department estimate showed the first increase in new home sales since October, but the increase came after a big downward revision to the prior month. Economists polled by Reuters were expecting new home sales to slip to a rate of 520,000. The department revised down its March estimate to a rate of 509,000 from 526,000, or a 11.0 percent decrease from a first-reported 8.5 percent decline. The inventory of homes available for sale in April fell 2.4 percent to 456,000, which was the 12th straight monthly decline. The April sales pace put the supply of homes available for sale at 10.6 month's worth.
CONFIDENCE SINKS
The Conference Board, an industry group, said its monthly measure of consumers' mood fell to 57.2 this month from 62.8 in April, well below Wall Street's median estimate of 60.0. The index has dropped by almost half since last July, when housing market troubles triggered the most severe credit crisis in at least a decade. Inflation expectations rose to an all-time high 7.7 percent, well above April's 6.8 percent. The pain was felt across the board, with consumers worried about both what is happening now and what might be to come. The present situation index dropped to 74.4 from 81.9, while the expectations barometer fell to 45.7 from 50.0.
(Additional reporting by Pedro Nicolaci da Costa and Al Yoon in New York; Editing by Andrea Ricci)
A reporter journeys to the Sunshine State and finds that high-end homes are now selling for bargain prices. His conclusion: the real estate market is even worse than you hear.
NAPLES, Fla.-- You can hardly escape the real estate crash down here. Even the young woman who checked me into my hotel just lost her home.
So if you are looking to buy a place, someone is going to make you a deal.
The surprising twist: It isn't just at the bottom end of the market. As my colleague June Fletcher noted in March, there have been huge price drops in areas where foreclosures are at record highs. But you also see deep discounting in the snazzier parts of town. For three years, Americans have been using Web sites like Zillow to rubberneck the biggest real estate crash since the Great Depression and, maybe, to scout for values. But there's only so much the Web, or the statistics, can tell you. So I decided to come down here to see it up close. I'll be writing a series of columns over the next few days to tell you what I've learned.
And who knows? I'm not really in the market for a winter home here. But you never know...
What I'm finding so far?
The market's even worse than you hear. Which means, if you're a buyer, it's even better.
The biggest price drops haven't fully shown up in the official data because that stuff isn't selling at all.
Some condo developments out in alligator swampland -- excuse me, on 'pre development golf courses' -- have gone dark.
Meanwhile, hard though it is to believe, plenty of others in the market are still in denial.
Brokers will tell you about homes still being offered vainly at $899,000 long after identical units in the same building have sold for $500,000.
This extends to some brokers too. When I called around before flying down, a remarkable number told me, "Gosh, I'm just the busiest I've ever been! The market's really picking up."
I guess they were gambling I hadn't read a newspaper in, oh, about three years.
But the good news is that there are deals around in the kinds of places you might actually want to buy.
Realtor Craig Jones of John R. Wood in Naples showed me a two-bedroom, sixth-floor co-op near the beach that probably would fetched more than $600,000 at the peak. Today it's on the market for $498,000. And Ms Jones whispers you can probably get it for $425,000.
That' a big price cut. The apartment has spectacular Gulf views and is a five-minute walk to the beach.
According to official data, this unit sold for $480,000 back in July 2002. So in some cases we are back to those prices, maybe even earlier. That's pretty much pre-bubble.
Zillow, for its part, says this co-op was last worth about $425,000 in 2000 --2001.
So much for relying on the Web. What's actually happening in these markets isn't always showing up right away.
Meanwhile, a one-bedroom condo near the beach just sold for $237,000. At the end of 2004 the owners bought it for $370,000.
It's the same elsewhere along the west coast. On Siesta Key, near Sarasota, a corner condo right on the water is on the market for $500,000, and you could probably get it for $450,000. Realtor Raul Elizalde, at Michael Saunders and Associates, says that at the peak it sold for more than $700,000.
There are other deals on the island. It looks more interesting than snooty neighbor Longboat Key, where the lawns have been trimmed with toenail scissors, and former Florida Congresswoman Katherine Harris has a home.
Along the coast there are gorgeous, brand new homes on the water down from $3.1 million to $2.1 million; and the broker whispers you can get them for $1.8 million.
Bill Earls in Naples is showing a waterfront mansion with a boat dock for $9.9 million that "would have sold for $12 million, maybe $ 14 million, a few years ago." Sure, he's a broker; he would say that. But it's not implausible.
I was tempted to buy it and put it on my expense account. But the place was a little ornate for my taste.
Mr Earls largely deals with the high end and the very high end of the market. But he says the rich are as reluctant to buy as anyone.
Our slowing economy is having an impact on seniors. “One in four affluent 60-year-olds are changing their retirement plans and 40 percent “downsizing” their lifestyles,” according to an April national survey from Bell Investment Advisors.
The major findings included:
Financial Stress Increases for One in Three Affluent Boomers
Survey findings revealed that almost 30 percent of affluent boomers have more financial stress now than they did six months ago. Affluent female boomers report considerably more stress than men (35% vs. 24%), while affluent boomers on both coasts–in the Northeast (36%) and West (34%)—report more stress than those in the Midwest (27%) and South (25%).
One in Four Affluent Boomers Affected by Job Loss
Over a fourth (28 percent) of affluent boomers have either lost their job in the last 12 months or know someone who is age 60 or over who has. The job losses have been more acutely felt by affluent boomers in the Northeast or Midwest (both 38 percent) and have had the least effect on those in the South (19 percent). More than one third (35%) of the most affluent boomers surveyed—those with more than $3 million earmarked for retirement—were affected by job loss, compared with just 24 percent of those with $1-3 million saved, and 30 percent of those with under a million saved for retirement.
Changes in Retirement Plans and Spending
Of the one in four boomers who are changing their retirement plans due to the economy, more women (31%) than men (19%) say they are making changes. Regionally, those in the Midwest are most likely to make changes to their retirement plans (31% vs. 25%). Male respondents are more likely than women to have decided to push their retirement plans further into the future, with those in the Northeast and West more likely to postpone retirement than affluent boomers in the Midwest and South.
Of the 40 percent of boomers who are reducing spending in response to the economy, the highest proportions are in the Northeast (50%) and the West (46%), compared with 38 percent in the Midwest and 33 percent in the South. Based on the survey, 47 percent of affluent boomer women are making lifestyle changes, compared with just one-third of men. Only four percent of the affluent boomers surveyed report having downsized housing in response to changes in the economy.
Affluent Boomers’ Seeking Higher Returns
Based on the survey, more than half (54 percent) of affluent boomers cited higher returns on investments as a primary goal for the next five years. “This finding underscores the fundamental lack of understanding many investors have about risk and return. Boomers will not achieve higher returns if they shift to more conservative investments as the survey findings suggest,” said Bell. He recommends that boomers retain a healthy portion of their assets in growth-oriented equities, so that their nest egg continues to grow.
Many seniors, homeowners who are age 62 and older, are looking toward reverse mortgages as a resource for income and a way to lessen monthly housing expenses.
Whether you believe John Edwards endorsement of Barack Obama to be politically expedient or borne out of genuine inspiration, it certainly represents a tonal shift in the Democratic presidential nominating process. Hillary Clinton’s quixotic quest notwithstanding, the fall election campaign is in full tilt and the words of key players on both sides on the aisle take on critical importance. Therefore, we pose this question. What is John Edwards really saying?
Ding, ding, ding, sound the alarm! It’s been one week and a day since the Feds last interest rate reduction and things haven’t really changed all that much. The Federal Reserve cut it’s key interest rate the federal funds rate to 2% and the only true healer so far is the stock market.
When we see lower interest rates induced by the Federal Reserve we should expect two things: 1) Banks will charge each other a lower rate when lending one another funds 2)The reduction will not affect you the consumer as much as you might like it to.
Sure, most folks get a little jolly when the Federal Reserve cuts rates, and why not, it is believed to find relief in credit cards, auto loans, home equity lines, student loans, and finally the home mortgage. However, after seven consecutive rate cuts, I think we can all agree that this is simply not the case! Here is what you should know and how to benefit:
Use this opportunity to save any “savings” from lower interest only credit lines or loans:
· While the rates are low, pocket any additional savings from what is expected to be an increase later on. This will help to cushion the blow when rates go back up.
If you’re in a higher than market interest rate (fixed or adjustable) mortgage or loan and prepare to refinance by:
· Establishing a relationship with a broker or banker and give them a desired rate, once the market reaches your desired interest rate instruct them to lock in the rate and move quickly to close the loan.
If you’re in a position to buy:
· Then assess your total financial situation with the help of a financial planner or other finance professional and invest in real estate while the getting’s good!
In a January 2007 paper entitled "Back to the Future: The Need for Patient Equity in Real Estate Development Finance" Christopher B. Leinberger, visiting fellow with the Brookings Institution Metropolitan Policy Program, explores the concept that the use of "Patient Equity" would faciliate the development of "walkable, mixed use neighborhoods" across the United States, producing quality projects yielding superior financial returns.
As the industry seeks to develop more sustainable, mixed-use, transit-oriented, mixed-income projects, the re-application of "Patient Equity" may prove to be a useful tool.
As towns and cities across the nation become increasingly unaffordable, the call for the development of Workforce Housing (housing for families that provide essential services to our communities) grows louder. Read why local business leaders agree.
0 Comments | Add Comment | Wednesday, May 07, 2008
May 5 (Bloomberg) -- The Federal Reserve said the proportion of U.S. banks making it tougher for companies and consumers to borrow approached a record in the past three months as the credit crunch deepened.
A net 70 percent of banks increased loan rates over their cost of funds for commercial and industrial borrowing, according to the central bank's quarterly survey of senior loan officers released today in Washington. That compares with 45 percent in the January survey, the Fed said.
The survey, conducted last month, was available to Fed policy makers last week when they cut interest rates by a quarter percentage point. Banks are restricting access to credit after financial firms posted more than $318 billion of losses and writedowns in the aftermath of the crisis sparked by subprime mortgages.
``The net fractions of domestic banks reporting tighter lending standards were close to, or above, historical highs for nearly all loan categories in the survey,'' today's Fed report said.
The survey covered 56 domestic banks and 21 foreign institutions. The American banks together have $6.1 trillion in assets, representing about 64 percent of the country's $9.5 trillion total for all domestically chartered, federally insured commercial banks.
Policy makers last week signaled that they are ready to hold off on further rate cuts as they assess the impact of the 3.25 percentage points of reductions since September. They dropped a reference to ``downside'' risks to growth from their previous statement.
Impact on Growth
At the same time, officials acknowledged in their April 30 statement that ``tight credit conditions and the deepening housing contraction are likely to weigh on economic growth over the next few quarters.''
Traders anticipate that the Fed will leave its main interest rate unchanged at 2 percent through October, based on futures prices on the Chicago Board of Trade.
In commercial real estate, a net 80 percent of U.S. banks said they tightened lending standards, about the same as the January survey, both about the highest since the central bank began seeking information on the subject in 1990. A net 35 percent of U.S. banks reported slower demand, less than January's 47 percent.
For home loans, the proportion of U.S. banks making it tougher for prime borrowers, those with the best credit, rose to about 60 percent from 53 percent. About one-fourth of U.S. banks reported slower borrowing for prime mortgages and 30 percent said nontraditional loans were weaker, both ``significantly smaller'' numbers of banks than in the January survey.
Mortgage Costs
The Fed's cumulative 3.25 percentage points of reductions in the benchmark short-term rate since September have failed to put much of a dent in the cost of a mortgage. The average rate on a 30-year fixed mortgage was 6.06 percent last week, down from 6.46 percent at the start of September though up from 5.45 percent in January, according to Freddie Mac.
In response to special survey questions on home-equity lines of credit, about half of U.S. banks said they tightened terms on existing loans, mainly because of declines in home values below appraised values, as well as increased defaults and changes in borrowers' finances.
Today's report comes amid signs the U.S. economy is weathering the housing and credit contractions. A report today showed service industries unexpectedly grew for the first time since December, while the economy as a whole expanded at a 0.6 percent annual pace in the first quarter, matching the pace of the last three months of 2007.
Fed Chairman Ben S. Bernanke is scheduled later today to speak in New York on mortgage foreclosures, his first public comments since last week's Federal Open Market Committee meeting.
Bernanke's speech coincides with the advance of legislation backed by Democrats that would create a program at the Federal Housing Administration insuring as much as $300 billion in refinanced mortgages. The House is scheduled to consider the bill on Wednesday.
Foreclosure filings rose 57 percent in March from a year earlier, according to Irvine, California-based RealtyTrac Inc.[Show More]
NEW YORK CITY-Cushman & Wakefield Sonnenblick has arranged the joint venture between locally based Madison Capital and affiliates of Prudential Real Estate Investors. The venture may acquire $1 billion in urban retail and mixed-use properties in New York City and other major urban markets. Click here for full story.
Goldman Sachs is teaming up with L&M Development Partners and launching a $100 million urban investment fund aimed at mixed-income housing and other projects in New York and other U.S. cities. Click here for full story
Obama's "Truth" ad which is currently running in Indiana and North Carolina suggests that Obama has the answer to many Americans' concerns about gas tax and the increase in fuel prices. Obama suggests that we go beyond the quick fixes that Washington is accustomed to by going after the oil companies, using less oil and raising fuel effeciency standards on cars while also developing alternative fuels.
The idea of energy effeciency has increased in recent times since everyone seems to be "going green." The fact that a half of tank of gas can cost the average American $30 bucks, triggered me to explore ways in which we Americans can use less fuel (improve m.p.g.).
1. Plan and combine trips to the store. 2. Change your driving habits. Accelerate a little slower by removing your foot from the gas pedal a little sooner before a stop sign or traffic light. 3. Turn the A/C off in the city. A/C increases drag on the engine and tends to lower mileage. When traveling on the highway however, the wind drag from open windows will possibly be more. 4. Use overdrive. Overdrive or Economy settings are used to improve economy. 5. Stick with your octane. A higher octane than what your owner's manual calls for may not help mileage. 6. Check gas stations. Some stations have been reported for overstating the amounts of fuel delivered from what is displayed on the pump. 7. Trade in that gas guzzler!
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