News Alerts. Nov. 1, 2013. Evening Edition. #RealEstate

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  1. Video: Australia’s mixed housing market – YouTube

    Australia: They aren’t lending like crazy but supply is too low, driving prices too high for all but the investor class. That’s good for landlords.

    Segment from ABC’s The Business, aired 28 October 2013.

    Source …

  2. Why You Should be Buying Commercial Real Estate – Options on Real Estate – How To Buy Real Estate News Alerts. Nov. 1, 2013. Evening Edition. #RealEstate

    Buying commercial real estate now might be your best chance to get in on another ground floor opportunity. The opportunity to buy residential real estate at the bottom of the cycle has come and gone. However, buying commercial real estate at the bottom of the cycle, could be the next opportunity of a lifetime, for investors.

    The issues are the size of entry, cash flow, and level of difficulty. It takes more money to get into commercial investments. With vacancies still low in much of the sector, the competition is stiff and cash flow can be tight. Commercial deals, including lease documents and transactions, to lease out your property, are considerably more complicated than for small residential properties.

    That said, there truly is money to be made in the sector; and Wendy Patton is certainly right about the ground-floor aspect. The sector has not yet heated up, though it has generally been steadily improving.

    Source …

  3. In Texas, Housing Shortages Driving Up Prices, Starting Bidding Wars, but Trulia “Bubble Watch” Shows Texas Metro Areas as “Overvalued” | Candy’s Dirt News Alerts. Nov. 1, 2013. Evening Edition. #RealEstate

    Joanna England writes:

    I know “housing shortage” should sound very ominous, but really, we should be celebrating! Thanks to a growing job market, Texas is adding more workers faster than it can build housing for them. According to this story in Bloomberg News, there are bidding wars all over Texas, with some sellers turning down cash offers that would have seemed ample just a few years ago.

    While the Bloomberg story is a bit general and doesn’t show that in some neighborhoods homes sit on the market for 90 days or more depending on location and price, it sheds an interesting perspective on why Texas wasn’t hit so hard when the housing bubble burst and why home builders are slow to meet brisk demand:

    Values also didn’t inflate as much because builders could move quickly to meet demand given the state’s abundance of land and relatively easy zoning requirements. Texas home prices fell about 2.5 percent from a peak in 2007 to a trough in 2011, according to the Federal Housing Finance Agency.

    The state’s homebuilding industry, which fell into hibernation during the recession, awoke to a rebound that it was unprepared for. Developers, constrained by banks reluctant to make construction loans, had few lots in its backlog, and many homebuilders closed or downsized. Trade workers left for jobs in the energy industry as oil prices surged.

    Source …

  4. Banks Abandon Mortgage Preapprovals – Yahoo Finance

    Good for landlords:

    Housing experts, however, say the decline in preapprovals is largely due to dwindling competition among mortgage lenders for new clients. Prior to the recession, lenders used preapprovals as way to attract would-be borrowers. Buyers who had this commitment from a lender were more likely to turn to this company when they were ready to get the actual mortgage, says Keith Gumbinger, vice president at mortgage-info site In that way, preapprovals became a revenue source for lenders. Since the recession, many lenders have shut down, and that has decreased competition for buyers, he says.

    Several banks, including Chase and Bank of America, say rather than preapproving home buyers, they’re mostly doing pre-qualifications. With pre-qualifications, lenders inform borrowers of the size of the loan they can qualify for based on their stated income and assets as well as an initial credit check. Historically, pre-qualifications were the first step buyers would take before shopping, which was then followed by a preapproval when they became serious about a specific home they wanted to purchase.

    … most lenders can rescind a prequalification, whereas a preapproval is a commitment that usually lasts two to three months.

    Source …