Posts filed under “Real Estate”

Cash Purchases Spike as Interest Rates Rise


Source: RealtyTrac

 

The chart above comes form the RealtyTrac Residential & Foreclosure Sales Report. It should come as no surprise that as rates rise, so too do all-cash purchases.

There are a few significant factors worth noting:

1) Last year, institutional investor purchases for residential properties (single family homes, condominiums and townhomes) accounted for 7.3 percent of all U.S. residential property purchases. This is up from 5.8 percent from in 2012 and 5.1 percent in 2011.

2) Median price of a distressed residential property — in foreclosure or bank-owned — was 38 percent below non-distressed property median ($108,494 versus $174,401) in December.

3) Bank-owned properties (REO) accounted for 9.3 percent of all U.S. residential sales last month, essentially unchanged from a year earlier (9.2 percent in December 2012).

Category: Credit, Fixed Income/Interest Rates, Real Estate

New Generation Homeowners

Source: Visual.ly

Category: Real Estate

Drivers of Mortgage Choices by Risky Borrowers

Drivers of Mortgage Choices by Risky Borrowers Fred Furlong, David Lang, and Yelena Takhtamanova FRBSF Economic Letter 2014-01 January 6, 2014     During the past decade’s housing boom, borrowers with lower credit ratings were more likely than higher-rated borrowers to choose adjustable-rate mortgages. This raises the question of whether, amid rapidly rising house prices,…Read More

Category: Credit, Real Estate, Think Tank

The Best Gummint Housing Program You’ve Never Heard Of

Of all of the various government housing programs run by various federal agencies — Federal Housing Administration, Federal Housing Finance Agency, Housing and Urban Development and, of course, Fannie Mae — HARP is the most effective and efficient one out there. Odds are you have never even heard of the Home Affordable Refinance Program. And…Read More

Category: Bailouts, Credit, Real Estate

A Bet for Barron’s on Housing

I have long been a reader of Barron’s. I spent countless Saturday mornings early in my career with a big cup of coffee and a hard copy of the weekly. Over vacation, I almost missed this cover story on housing last weekend by Jonathan Laing, Betting on the House. In it, they forecast 5% annual…Read More

Category: Real Estate, Really, really bad calls

Barron’s: Will Housing Keep Rising?

Category: Credit, Real Estate

Blackstone’s Big Bet On Rental Homes

From Bloomberg: The Blackstone Group LP, the world’s largest private equity firm, became the largest owner of rental homes in the U.S. , acquiring 41,000 homes in the past two years. In October, Blackstone offered the first-ever “rental-home-backed” security on Wall Street. The bond is backed by just a fraction — 3,207 — of the rental…Read More

Category: Real Estate, Venture Capital

Housing Collateral and Entrepreneurship

Category: Real Estate, Think Tank

The Recent Boom in House Prices: Why Is This Time Different?

Category: Real Estate, Think Tank

Are American Homeowners Back to Positive Equity? (No)

American Homeowners Are Finally Returning to Positive Equity Source: Economist     Here is a fascinating albeit somewhat confusing chart: Total US residential equity relative to total mortgage debt. The problem, even misleading part about the chart is some 30% of homes are bought with no mortgage — straight up cash deals.   Continues here

Category: Real Estate