News Alerts. Oct. 7, 2013. Morning Edition. #RealEstate

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  1. Some big investors take breather in rental market – Yahoo Finance

    Rental demand is strong, with vacancies near record lows and rent growth continuing to gain. Younger Americans are not moving into home ownership as fast as previous generations, and the supply of distressed properties is still elevated.

    "The cohort of potential buyers at the younger age of the spectrum really isn't materializing, because so many are locked into student loan debt," said Rick Sharga of Auction.com. "I do think we are going to continue to see a healthy rental market."

    Single family rentals have always been a large component of the housing market. The only difference now is that mom and pop landlords are being replaced by large-scale investors and management companies.

    Mom-and-pop landlords can certainly still make a go of it if they focus locally and/or have great property management in place when investing out-of-state or just too far from home to manage themselves. Their focus should also be on long-term positive income (which often means solid equity/larger down payments) rather than boom appreciation and flipping to "suckers" later to the game. It's very risky to try to time a bust.

    Read the source article … http://finance.yahoo.com/news/big-invest ors-breather-rental-market-125838523.htm l


  2. "Vampire" foreclosures could damage housing market – CBS News

    The existence of these homes has been denied and/or downplayed for many months now by a large swathe of the mainstream media.

    An estimated 47 percent of bank-owned homes across the nation are still occupied by the previous owner, according to the real estate information company. In some cities, such as Houston, Miami, Los Angeles and Chicago, up to 65 percent of bank-owned homes are considered vampire foreclosures.

    These homes, along with the 20 percent of foreclosures known as "zombies," where a homeowner has abandoned the property during the foreclosure process, will eventually have to come to market, said Daren Blomquist, vice president of RealtyTrac.

    "This distressed inventory is artificially being held back so that in the short-term, it's helping boost the home prices and the housing recovery in general," Blomquist said. "But the red flag there is that eventually these homes are going to have to hit the market. They're not going to just disappear."

    Read the source article … http://www.cbsnews.com/8301-505145_162-5 7605771/vampire-foreclosures-could-damag e-housing-market/


  3. Weigh benefits of prepaying mortgage vs. investing | Business | The State

    We've linked to articles like this before, but this is a good one to add to the collection.

    Keep in mind that the rate of return you'll receive is directly related to the investments you choose. Investments with the potential for higher returns may expose you to more risk, so take this into account when making your decision.

    Read the source article … http://www.thestate.com/2013/09/28/30076 36/weigh-benefits-of-prepaying-mortgage. html


  4. Realogy Franchise Group CEO: 'Tea Leaves' Say Real Estate on Path to Sustainable Recovery | RISMedia

    Taking a research-packed deep dive into the real estate recovery, Realogy Franchise Group President & CEO Alex Perriello kicked off RISMedia's 2013 Real Estate CEO Exchange with a State of the Industry Address: "The Road to Recovery: How Far We've Come, What Has Changed, and What Lies Ahead."

    According to Perriello, in 2009, 6 million jobs were lost; in 2010, 8 million jobs were lost. "We've added back close to 6 million," he explained. "By the end of 2014, we should be back to where we were before the recession."

    Perriello cautioned, however, that jobs need to "season for a while before they have an impact on housing. If I get a job today, the lender will want to wait and make sure I stay in that job."

    Read the source article … http://rismedia.com/2013-09-29/realogy-c eo-tea-leaves-say-real-estate-on-path-to -sustainable-recovery/


  5. Metro Atlanta a hub for investor owned real estate | Online Athens

    Most large investors began looking elsewhere some time ago while many others dropped out of the market or are in the process of selling their portfolios or parts thereof.

    ATLANTA — Real estate experts say investment companies are taking advantage of low home prices in the metro Atlanta region and have purchased nearly 40,000 of them in the past 18 months.

    The Atlanta Journal-Constitution (http://bit.ly/14TqAOP  ) reported Sunday [actually Saturday, Sept. 28, 2013] that figures from real estate data website RealtyTrac shows 13 of the top 25 counties nationally where institutional investors have made the greatest impact on real estate markets are in Georgia. The top six counties are all in the metro Atlanta region.

    The newspaper reports investor owners are capitalizing on a large supply of cheap homes that were left throughout the region after the economic downturn.

    Read the source article … http://onlineathens.com/local-news/2013- 09-29/metro-atlanta-hub-investor-owned-r eal-estate


  6. Wichita Falls, Texas – Rental markets: Top 10 places for mom-and-pop investors to buy – CNNMoney

    As we said, mom-and-pop investors can make a go of it.

    Mom-and-pop investors who buy properties in this North Texas prairie region and rent them out are seeing double-digit returns on their investments, according to a report from RealtyTrac.

    Read the source article … http://money.cnn.com/gallery/real_estate  /2013/09/30/rental-markets/index.html


  7. Renters May Be Stickier Than We Thought – CoStar Group

    … while it is true that some REITs reported that an increasing number of renters cited homeownership as their reason for leaving, the aggregate total of these renters-turned-homebuyers hasn't been large enough to grow the turnover numbers.

    Instead, it would appear that existing institutional renters are accepting elevated rent levels as the new normal and/or haven't found a better alternative … yet.

    Read the source article … http://www.costar.com/News/Article/Rente rs-May-Be-Stickier-Than-We-Thought/15278 8


  8. Sober Look: Eurozone's falling excess reserves – is another round of LTRO required?

    This may not make much sense to you. If it does, you still might wonder how in the world the ECB can be doing the exact opposite of the Fed yet there not be a much wider divergence in the economic results for the two areas.

    … if these declining excess reserves push up rates, the ECB will have to act. But the central bank does not have the Fed's dual mandate and is not as focused on the Eurozone's dangerously high unemployment levels.

    Well, it's because the Fed is not using or employing a hard transmission mechanism. It is why many Modern Money Theory economists (aka Post-Keynesians) say that the Money Multiplier is dead. The Fed would have to take steps to literally coerce the commercial banks to lend before the difference in excess reserves between Europe and the US would make the kind of difference (greater jobs growth, etc.) in the real economy one intuitively expects given small versus huge reserves.

    Read the source article … http://soberlook.com/2013/09/eurozones-e xcess-reserves-and-draghis.html


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