Articles

The Trouble with Condos, WSJ

What can you do if you are stuck in condominium you can’t sell? In resort and vacation destinations, some owners may be able to wring more income out of a property with short-term rentals to vacationers than from a long-term tenant, if condo association rules permit. Some popular areas for vacation condo rentals include Orlando, Fla.; Cape Cod, Mass. and Los Angeles according to HomeAway.com, a website that links property owners and managers with travelers

In some gentrifying neighborhoods of Boston, for instance, where condo conversions of the city’s storied triple-decker row houses were rampant in the last decade, many owners now find they can’t sell their units, partly because of tougher lending requirements by government-sponsored mortgage backers including the Federal Housing Administration, some real-estate experts say.The new rules, enacted recently to help forestall rising foreclosures, mean many condo projects no longer qualify for financing by some GSE-backed mortgages because they require more information about the financial soundness of the entire condo project than in the past.
By Michal Czerwonka, Oct 29, 2010 WSJ

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Plunging Mortgage Refinancing Rates Aid Thrifty, NYT

For competitive reasons, the large lenders are reluctant to reveal their refinancing numbers, but they acknowledged that the news had been getting ever better for many borrowers. JPMorgan Chase, for instance, said that “refinancings have increased dramatically as a percentage of all new mortgages from a year ago, and the refinancing dollar volume has risen even more dramatically.” Chase also said it had added staff to its refinancing unit to process applications more quickly.   

 For those sober souls who were thrifty long before it became fashionable, the last few years have been intensely aggravating. They did nothing to cause the recession, but they absorbed the pain. Their stock portfolios languished. The values of their homes skidded. Their savings still do not earn enough interest each month to buy a pack of gum. Now, at last, the frugal are celebrating. With a leg up on their less creditworthy neighbors, they are qualifying for refinanced home mortgages at interest rates that in any other recent era would have been considered stealing. And unlike in late 2008, when rates started their plunge to historic lows, many lenders say they are rushing to accommodate the influx in applications. Wilner Samson and Michelle Smedley, both doctors, just refinanced their home in West Hartford, Conn., saving $300 a month. “There were times during the housing boom when I felt I was missing out on a big party,” said Dr. Samson, a kidney specialist. “Now I’m getting my reward.”
By David Streitfeld, Oct 22, 2010

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Foreclosures Push Home Prices Down in Many Cities, AP

WASHINGTON – Home prices are falling further, suggesting a bottom hasn't been reached in many metro areas.Millions of foreclosures are expected to pour onto the market in the coming years. That's likely to force prices down and hurt even cities that had begun to rebound. Investigations into banks' foreclosure paperwork could further deter buyers and weigh down prices.The past few months have been the worst time in a decade for the housing market. Few people have bought homes, and among the small pool of buyers, many have purchased foreclosures and other distressed properties.The impact was apparent Tuesday when Standard & Poor's/Case-Shiller released its latest index for home prices in 20 major U.S metro areas. The average price for all markets fell 0.2 percent in August and 15 cities posted declines.But the foreclosure problem is far from over. A "shadow inventory" of homes on the verge of foreclosure is bound to force prices lower well into next year. About 2 million loans are in foreclosure, and another 2.4 million borrowers have missed at least 90 days of mortgage payments, according to LPS Applied Analytics.
By Alan Zibel, Oct 26, 2010 Associated Press Real Estate

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‘Affordable’ Sales Dominate 3Q10 Hamptons Real Estate Reports, NY Mag

Hamptons real estate has found its footing, though it's not off to the races just yet. Third-quarter prices are down in many Hamptons locales, but activity is brisk. Days on market has shrunk. House-hunters are making the rounds, but mostly at smaller (read: affordable) properties. Caveats abound! According to third-quarter surveys, transactions are up 2.2 percent to 469 compared to the same time last year, per Jonathan Miller's Prudential Douglas Elliman report. The median sales price fell 10.7 percent to $625,000. In the South Fork and Shelter Island, luxury estates at the top 10 percent of the market took a hit price-wise, with averages and medians down 10 percent and 29 percent, respectively, according to Corcoran's report. The number of luxury transactions rose 31 percent.
Daily Intel, Oct 21, 2010 New York Magazine

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