Jude's Real Estate Rumblings

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Investor Report: Multiple-use "Flex" Space Properties

An article from RealtyTimes.com, reports that according to Mike Cannon, executive director of Integra Realty Resources of Miami, small to moderate-scale investors should be looking hard at central-city properties that currently have traditional, relatively inefficient uses that can be transformed into creative combinations of residential, retail, even office and light industrial.  He said, "The move is back to the urban core.  All the economic and demographic forces are pushing in that direction."  Many of the high-potential properties Cannon recommends are the "live-work" modern equivalents of traditional American urban combinations, such as the retail store on the first floor, and residential units on the one or two floors above.  Cannon said some of the most attractive real estate returns in the coming decade will go to investors who can identify and acquire urban-core land or buildings that are currently underperforming, but that have multiple, adaptive-use potentials going forward.
http://realtytimes.com/rtpages/20080620_investorreport.htm
0 comments • Jude Sandvall, ABR, CNE, SFR 720-255-1021 • June 23 2008 12:54PM

Daily Rate Lock Advisory

 



Monday's bond market has opened in positive territory following a negative open for stocks. The stock markets are starting the week off with losses with the Dow down 10 points and the Nasdaq down 15 points. The bond market is currently up 6/32, but we will likely still see an increase in this morning's mortgage rates of approximately .125 of a discount point due to weakness late Friday.

There is no relevant economic news being released today. The rest of the week will likely prove to be very active in terms of mortgage rate movement due to the economic data and other events that are scheduled. There are six economic reports scheduled for release between tomorrow and Friday, in addition to another Federal Open Market Committee (FOMC) meeting. Together, we have the makings of a potentially volatile week in the financial and mortgage markets.

Tomorrow brings us the first important report of the week with the release of June's Consumer Confidence Index (CCI). The CCI is very important to the financial markets because it measures consumer willingness to spend, which is important because consumer spending makes up two-thirds of the U.S. economy. If it shows an increase in confidence from last month, we can expect to see the bond market falter and mortgage rates rise slightly. Current forecasts are calling for a reading 56.0, down from last month's 57.2 reading.

The FOMC meeting begins tomorrow and will adjourn Wednesday afternoon. It is widely expected that Mr. Bernanke and company will not change key short-term interest rates at this meeting. But, as we have seen so many times in the past, it is the post meeting statement that often creates the most volatility in the markets. They could give an opinion of the overall economy, hinting at a possible future move or lack of one. Statements like these could cause a knee-jerk reaction in the markets and possibly mortgage pricing Wednesday afternoon. I suspect we will hear concerns about inflation that will lead to selling in bonds.

Overall, today will likely be the quietest day of the week. The most active should be tomorrow or Wednesday to the importance of the data and FOMC meeting. Wednesday's Durable Goods Orders could also help make it a busy day. Friday's news may also affect mortgage rates, but likely not as much as earlier days. This would definitely be a good week to maintain constant contact with your mortgage professional.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Lock if my closing was taking place between 21 and 60 days... Lock if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

2 comments • Jude Sandvall, ABR, CNE, SFR 720-255-1021 • June 23 2008 12:44PM

Over the Horizon, a Housing Recovery

Aan article from CNNMoney.com, reports that according to a new study from the Joint Center for Housing Studies of Harvard University, "The State of the Nation's Housing 2008," the country is poised to see an increase in housing demand over the next decade.  Nicolas Retsinas, director of the Joint Center for Housing Studies and on of the study's authors said, "The good news is that we still have a growing population.  As long as you have more households, more people are going to need places to live."  The Harvard study also found in early 2008, the nation had an 11-month supply of unsold new homes and a 10.7-month supply of existing single-family homes. A 6-month supply of existing homes is considered a buyers' market.  In order to reduce the current supply, the market will require price declines, a decrease in interest rates, employment growth, a return of consumer confidence and the revival of accessible mortgage credit.
http://money.cnn.com/2008/06/23/news/economy/harvard_housing_study/index.htm?postversion=2008062303
0 comments • Jude Sandvall, ABR, CNE, SFR 720-255-1021 • June 23 2008 12:43PM

Brookfield Properties to buy Seventeenth Street Plaza

An article from the Denver Business Journal, reports that according to real estate professionals familiar with the deal, Brookfield Properties Corp. has downtown Denver's Seventeenth Street Plaza high-rise office building under contract for roughly $225 million.  The building, currently owned by JP Morgan Chase & Co., is one of Denver's largest office properties at 666,653 square feet in 33 stories and is located across from the Tabor Center.  Brookfield already owns the 1.2 million-square-foot, 56-story Republic Plaza and hopes to develop an office building behind the Denver Pavilions mall.  Denver investment brokers said JP Morgan put the Seventeenth Street Plaza up for sale earlier this year with an asking price of $385 per square foot, or roughly $250 million.

0 comments • Jude Sandvall, ABR, CNE, SFR 720-255-1021 • June 23 2008 12:41PM

Aurora, Colorado - National Civic League's 2008 All-America City Winner!

2008 All-America City Award Winners Announced!

Denver, Colorado-The National Civic League announced the winners of the prestigious All-America City award during a June 6 celebration at the Tampa Marriott Waterside Hotel. The ten winners in 2008 (in alphabetical order by state) are:

Goodyear, Arizona
Cerritos, California
Aurora, Colorado
New Haven, Connecticut
Kissimmee-Osceola County, Florida
Gladstone, Missouri
St. Louis Region (Missouri-Illinois)
Lenoir, North Carolina
Reidsville, North Carolina
Akron, Ohio

In its 59th year, the awards program recognizes neighborhoods, villages, towns, cities, counties and metro regions for outstanding civic accomplishments. To win, communities have to demonstrate their ability to address serious challenges with innovative, grassroots strategies that promote civic engagement and cooperation between the public, private and nonprofit sectors.

"These communities really give us hope," said National Civic League President Gloria Rubio-Cortés, "because they show others what can happen when people roll up their sleeves and work together."

The All-America City Award is an honor achieved by more than 500 communities across the country. Some have won the award multiple times. This year's winners addressed such pressing and topical issues as healthcare for the uninsured, housing for seniors, immigration, education and economic development.

Founded in 1894, the National Civic League (NCL) is America's original advocate for good government and community democracy. Originally known as the National Municipal League, it is a non-profit, non-partisan, membership organization dedicated to strengthening citizen democracy. NCL fosters innovative community building, political reform, effective governance and collaborative problem-solving efforts through technical assistance, training, publishing, research and its awards programs.

This year's AAC Awards were sponsored in part by Jones Day, Prudential, Wachovia Corporation, ICMA Retirement Corporation, RBC Capital Markets, MWH, Southwest Airlines (The Official Airline of the AAC Awards), Tampa Marriott Waterside Hotel and Marina (The Sole Official Headquarters Hotel of the AAC Awards), and Marriott International.

Hundreds of civic leaders and community activists from across the country met in Tampa for the three-day awards competition from June 4-6. To win, each community had to make a presentation to a jury of civic experts from the public, private and nonprofit sectors listing three outstanding examples of collaborative, community problem solving.

The benefits of the award include heightened national attention, civic pride, and a proven economic impact. The rigorous application process serves as a valuable civic self-assessment and can make communities stronger.

For more information contact Mike McGrath at the National Civic League at 303 571-4343 (or e-mail at mikem@ncl.org).

Listed below are select examples of some of the award winning community projects:

 

Aurora, Colorado
Facing major military base closures, Aurora created a redevelopment authority to find a new use for the former Fitzsimons Army Medical Center. The University of Colorado Health Sciences Center was looking for a site in which to relocate. The convergence of these two events resulted in the redevelopment of Fitzsimons as a world-class hub of health care and research, anchored by a major research university and an affiliated bioscience and biotechnology research park.

0 comments • Jude Sandvall, ABR, CNE, SFR 720-255-1021 • June 16 2008 12:46PM

Realty Viewpoint: More Good News - Asking Prices Flatten

An article from RealtyTimes.com, reports that according to the Altos 10-City Composite Price Index, real-time asking prices for homes declined just 0.3% in May.  Prices of properties listed for-sale increased in 15 of 26 major markets according to the Real-Time Housing Market Report and Real IQ.   Overall, prices increased by more than 1% in 11 of 26 markets.  The Altos 10-City Composite showed the average days-on-market was 106, which is an improvement from 111 in April and 113 in March.  The Real-Time Housing report and 10-city indexes are more positive than other indexes, such as the Case-Shiller, because the information is not based on sold data or same sales data, but tracks real-time listing prices.
http://realtytimes.com/rtpages/20080612_realtyviewpoint.htm
1 comment • Jude Sandvall, ABR, CNE, SFR 720-255-1021 • June 16 2008 12:32PM

15 Powerful Ways to Find Prospects and become a Stronger Agent

An article from RISMedia.com, reports that you must constantly prospect in order to remain successful in real estate. But for some agents, picking up that telephone is a very difficult thing to do.  One effective method for locating prospects is to hold a call-to-action seminar.  For sellers, some examples might be: how to advertise a house; how to hold an open house; how to use today’s low interest rates to get your house sold.  And for buyers: how to conduct a home search in half the time or financing strategies in today’s real estate market.  Another effective method for locating prospects is to take the long way home.  People tend to drive to the office the same way every day.  By taking a different route, you’ll see things you never noticed before like a few FSBO signs.  Finally, create a master list that includes plumbers, electricians, gardeners, contractors, divorce attorneys, etc. and include them in your promotion campaigns.   
http://rismedia.com/wp/2008-06-12/15-powerful-ways-to-find-prospects-and-become-a-stronger-agent/




1 comment • Jude Sandvall, ABR, CNE, SFR 720-255-1021 • June 16 2008 12:28PM

Rental-home vacancy rate at 7-year low

An article from The Denver Post, reports that a survey released Thursday showed the vacancy rate of for-rent condos, single-family homes and other small properties has dropped to its lowest point since 2001.  According to the report prepared for the Colorado Division of Housing, the vacancy rate was 2.7% for the 1st quarter.  That is down from 3.3% in the 4th quarter of 2007 and 4.2% in the 1st quarter last year.  Bob Alldredge of property-management company Jericho Properties Realty LLC, said the decline is largely because people who have lost their homes to foreclosure are moving into single-family rental homes.  "They're moving into rental houses and paying less than their mortgages were," he said.  Even as the vacancy rate declines, the rental pool is increasing, largely because owners who have struggled to sell their properties are now converting them to rentals. 
http://www.denverpost.com/business/ci_9569469


2 comments • Jude Sandvall, ABR, CNE, SFR 720-255-1021 • June 16 2008 12:26PM

FHA Higher Loan Limits Call To Action

NAR supports legislation to make permanent the loan limits included in the economic stimulus legislation.  Mortgage availability and affordability continue to be problems, and making the loan limits permanent will create stability in those markets and in our economy as a whole.  Dramatically reducing these limits in more than 240 communities in 26 states on December 31, 2008 would throw mortgage markets into turmoil. 

 

The Economic Stimulus Act retains the GSE current national limit of $417,000, and for higher cost areas in 26 states and the District of Columbia increases the limit to 125 percent of the area median, capped at $729,750.  For FHA, the Economic Stimulus Act raised ALL the loan limits from a base of $200,160 and a cap of $362,790 to a new base of $271,050 and a cap of $729,750.  The new GSE and FHA limits are slated to expire on December 31, 2008.

 

There’s still time for you to contact your United States Senators from Colorado to urge them to make permanent the changes to loan limits from this year’s economic stimulus package. To act today, go to the NAR Legislative Action Center Website here: Contact Your Senator Today

 

www.judesandvall.com

 

www.judesandvallloans.com

0 comments • Jude Sandvall, ABR, CNE, SFR 720-255-1021 • June 16 2008 12:23PM

Daily Rate Lock Advisory

 

 


Monday's bond market has opened up slightly, following a mixed open in stocks and no relevant economic news scheduled for release today. The Dow is currently showing a 35 points loss while the Nasdaq is up 3 points. The bond market is currently up 3/32, but due to selling in bonds late Friday, we will likely still see an increase of approximately .250 of a discount point in this morning's mortgage rates.

This week is moderately busy with four economic reports scheduled to be released. Only one of the four is considered to be of high importance to the markets and mortgage rates. The remaining three are of interest to the markets but likely will not cause a large change in mortgage rates unless they vary greatly from forecasts.

Tomorrow brings us the release of three of the week's four reports. May's Producer Price Index (PPI) will be the first early tomorrow morning. It helps us measure inflationary pressures at the producer level of the economy and is the sister report to last week's Consumer Price Index (CPI). There are two readings of this index, the overall and the core data. The core data is considered to be the more important of the two because it excludes more volatile food and energy prices. A large increase could add fuel to the theory that inflation is a real threat to the economy because the higher prices will likely be passed on to the consumer in the near future. This would not be good news for bond prices or mortgage rates since inflation erodes the value of a bond's future fixed interest payments. Rising inflation causes investors to sell bonds, driving prices lower and mortgage rates higher. Analysts are expecting to see an increase of 1.0% in the overall index and a 0.2% rise in the core data.

The second of three reports being posted tomorrow is May's Housing Starts report. This report gives us a measurement of housing sector strength, but is the week's least important. It usually doesn 't have a major impact on the bond market or mortgage rates and I se e no reason for this month's results to be any different. Analysts are expecting to see a drop in starts of new homes between April and May.

The third and final piece of data is May's Industrial Production. This report will be released at 9:15 AM ET. It measures output at U.S. factories, mines and utilities, giving us an important measurement of manufacturing sector strength. If it reveals that production is rising, concerns of manufacturing strength may come into play in the bond market. A decline would indicate that the manufacturing sector is weaker than expected and should help push mortgage rates lower. Current forecasts are calling for an increase of 0.1%.

Overall, look for tomorrow to be the biggest day of the week. Not just because it brings the release of three of the four reports, but because it brings us the PPI that is considered to be a key inflation reading. I am still not sure that we have seen the end of the recent bond selling. There fore, I am holding the lock recommendations for the time being.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Lock if my closing was taking place between 21 and 60 days... Lock if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

©Mortgage Commentary 2008


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0 comments • Jude Sandvall, ABR, CNE, SFR 720-255-1021 • June 16 2008 12:17PM