Sales of existing homes in the United States rose in June to its fastest pace in eight months, a sign that the housing market is emerging from a period of weakness.
The National Association of Realtors (NAR, for its acronym in English) reported Tuesday that sales of existing homes rose 2.6% in June to an annualized rate of 5.04 million units.
The figure was higher than expected by analysts and marked the third consecutive month in which the sales pace has accelerated existing housing.
The recovery in the housing sector stagnated in the second half of 2013 due to an increase in interest rates and a reduction in the supply of properties available for sale boosted prices.
However, mortgage rates have dropped a bit in recent months and the country's labor market has improved, which has helped the housing market.
The May sales rate was revised up to a pace of 4.91 million units from the previously reported rate of 4.89 million units.
Sales also have been supported by the fact that more homes are coming to market, preventing prices from rising so quickly.
The number of existing homes for sale on the market rose to 2.3 million in June, the highest level since August 2012 and 6.5% more than in June last year.
Wednesday, July 23, 2014
Monday, July 14, 2014
U.S. mortgage applications rise in latest week
Applications for mortgages for homes in the U.S. rose last week due to increased purchases and orders by refinancing, reported Wednesday a group of industry.
The Mortgage Bankers Association (MBA, for its acronym in English) said its seasonally adjusted index of mortgage application activity, which includes both refinancing demand as home purchases, rose 1.9% in the week ended July 4 .
The seasonally adjusted index of refinancing applications rose 0.4% MBA, while orders for loans to buy homes, a leading indicator of sales, rose 3.7 percent.
The 30-year mortgage rates averaged 4.32% for the week, basic four points more than the 4.28% in the prior week.
The survey covers over 75% of retail residential mortgage applications in the U.S., according to the MBA.
The Mortgage Bankers Association (MBA, for its acronym in English) said its seasonally adjusted index of mortgage application activity, which includes both refinancing demand as home purchases, rose 1.9% in the week ended July 4 .
The seasonally adjusted index of refinancing applications rose 0.4% MBA, while orders for loans to buy homes, a leading indicator of sales, rose 3.7 percent.
The 30-year mortgage rates averaged 4.32% for the week, basic four points more than the 4.28% in the prior week.
The survey covers over 75% of retail residential mortgage applications in the U.S., according to the MBA.
Monday, July 7, 2014
Builders intensify presence outside Bogotá
Restriction in the capital and other towns pulse leads the industry to diversify portfolio.
The difficulties of the last two and a half to develop real estate projects in Bogotá, free housing program of the government and the major push they are having the big and middle cities, years have created a kind of 'migration' of firms Bogota construction to those destinations, a phenomenon that continues to increase significantly.
Dane figures from March show that in places like Barranquilla, Medellin, Bucaramanga and Neiva was growth in the licensed area above the main city of the country.
Both sectors Guild representatives of some of these firms explain that given the size and ability of companies traditionally 'cachacas' strategies have achieved the goal of these opportunities.
Sandra Forero, Executive President of the Colombian Chamber of Construction (Camacol) indicates that different regions came with a very interesting dynamic for the growth of the country and the same local situation, allowing the entry of other players.
He adds that in these cities the local government sector and believe you have been welcomed to firms Bogotá and other places, because they know that this activity generates development, employment and beyond lay bricks, since having serious projects and integrals, make the cities are transformed.
Edgar Garcia, manager of Plan Bolívar Construction, explains that the main push factor for that was the plan of free government housing, because it has opened further to allow space in these markets, brought business in other segments of the population and in mixed use (commercial and office centers as anchor housing projects).
For example, he explains in Ibague has been seen that there is possibility of second home for people of Bogotá or who want to have a building for retirement, a phenomenon also observed in neighboring towns to big cities and so far is discovering.
"With our free housing percentage of sales almost doubled compared to what was being done," said the manager.
STRATEGY WORKED
The president of Ospinas Andres Arango, since 2003, in the mortgage post-crisis of the late 90s and early first decade of the century saw the need to not concentrate the entire operation of a use or purpose and in a one city.
Eleven years after the vision has paid off in the current environment, because in his view, when the firm sets foot in a city is to stay. "If relationships are built with the authorities, with the unions and customers, and there is a chance the mall first opens and then uses expand," he adds.
This firm is to build a new shopping center in Cucuta and opens its doors in September Bocagrande Plaza shopping center, which also will have 120 apartments for third, a Hyatt hotel of 251 rooms and 74 apartments on this brand, furnished and decorated with standards of this chain.
Meanwhile, Amparo Polanía, president of the Colpatria Construction, notes that through a third unit construction projects have been undertaken in Neiva, Monteria and Buenaventura.
DIFFICULTIES OF EXPANSION
The arrival of large construction Bogota to other cities has had some own barriers to growth.
For example, in some cases there have been difficulties with the supply of materials, because they are markets that are not used to high volume operation. Furthermore, the lack of qualified personnel has also made it necessary to bring people inside to new projects.
For Bolívar Construction, approximately 30 percent of the workforce is employed in the region in which efforts are made.
Also, the size of contractors and suppliers has also been a barrier, as institutions such as offices and notaries public instruments that are not used to this movement of paperwork and not have the infrastructure for it.
"These are cities that are used to sell 1,500 units a year and suddenly they can rise to 4,000 or 5,000," says Edgar Garcia, manager of planning this firm.
The difficulties of the last two and a half to develop real estate projects in Bogotá, free housing program of the government and the major push they are having the big and middle cities, years have created a kind of 'migration' of firms Bogota construction to those destinations, a phenomenon that continues to increase significantly.
Dane figures from March show that in places like Barranquilla, Medellin, Bucaramanga and Neiva was growth in the licensed area above the main city of the country.
Both sectors Guild representatives of some of these firms explain that given the size and ability of companies traditionally 'cachacas' strategies have achieved the goal of these opportunities.
Sandra Forero, Executive President of the Colombian Chamber of Construction (Camacol) indicates that different regions came with a very interesting dynamic for the growth of the country and the same local situation, allowing the entry of other players.
He adds that in these cities the local government sector and believe you have been welcomed to firms Bogotá and other places, because they know that this activity generates development, employment and beyond lay bricks, since having serious projects and integrals, make the cities are transformed.
Edgar Garcia, manager of Plan Bolívar Construction, explains that the main push factor for that was the plan of free government housing, because it has opened further to allow space in these markets, brought business in other segments of the population and in mixed use (commercial and office centers as anchor housing projects).
For example, he explains in Ibague has been seen that there is possibility of second home for people of Bogotá or who want to have a building for retirement, a phenomenon also observed in neighboring towns to big cities and so far is discovering.
"With our free housing percentage of sales almost doubled compared to what was being done," said the manager.
STRATEGY WORKED
The president of Ospinas Andres Arango, since 2003, in the mortgage post-crisis of the late 90s and early first decade of the century saw the need to not concentrate the entire operation of a use or purpose and in a one city.
Eleven years after the vision has paid off in the current environment, because in his view, when the firm sets foot in a city is to stay. "If relationships are built with the authorities, with the unions and customers, and there is a chance the mall first opens and then uses expand," he adds.
This firm is to build a new shopping center in Cucuta and opens its doors in September Bocagrande Plaza shopping center, which also will have 120 apartments for third, a Hyatt hotel of 251 rooms and 74 apartments on this brand, furnished and decorated with standards of this chain.
Meanwhile, Amparo Polanía, president of the Colpatria Construction, notes that through a third unit construction projects have been undertaken in Neiva, Monteria and Buenaventura.
DIFFICULTIES OF EXPANSION
The arrival of large construction Bogota to other cities has had some own barriers to growth.
For example, in some cases there have been difficulties with the supply of materials, because they are markets that are not used to high volume operation. Furthermore, the lack of qualified personnel has also made it necessary to bring people inside to new projects.
For Bolívar Construction, approximately 30 percent of the workforce is employed in the region in which efforts are made.
Also, the size of contractors and suppliers has also been a barrier, as institutions such as offices and notaries public instruments that are not used to this movement of paperwork and not have the infrastructure for it.
"These are cities that are used to sell 1,500 units a year and suddenly they can rise to 4,000 or 5,000," says Edgar Garcia, manager of planning this firm.
Wednesday, July 2, 2014
Talking about real estate inspections
In recent days talking to my friend Dr. Raul Pino, specializing in the real estate industry lawyer, on the subject of inspections in real property, and the incredible story emerged that years ago be expected to arise in his office. The later relate.
The conversation we held my friend Raul and lighting it up for the current mode to close properties that have the most financial companies, for the foreclosed properties. These companies do not take care to correct any defect or amend the building code violations that may have the property, leaving the work by the buyer to address any relevant illegality.
In certain municipalities in the county requires a seller to make an inspection of the property prior to sell the property, and correct defects established, besides bringing to code any illegality incurred in the inspection in question, before closing it. Worth noting that this happens when the real property belongs to an individual. However, if the property is part of the portfolio of a large company or a financial giant Freddy Mac, the municipality shall give permission to close the property and will be the responsibility of the buyer to repair and amend the illegalities in the time agreed with the municipality. Normally, 180 days.
Dr. Pino emphasized in our conversation the importance of the inspection process in any purchase of real property. I said again and again that this is the only time that the buyer can evaluate if you are making a good investment and if your money is well spent. According to their hypothesis, with which I agree, the buyer must select an accredited inspection company, without involving in selecting the selling agent or financial agent, much less a title company.
Conflicts of interest at times detrimental to the parties involved in the process. That is why the buyer should be documented very well about who he hired to investigate and defend him. A good source for information could be the lawyer to represent you, he will know who to recommend.Oh, and the day of inspections try to be present to know, first hand, what is happening on the property you intend to buy.
As a farewell, they do tell the story that my friend Raul.
According to him, there was a time that three days after closed a real estate deal, got the call from the buyers of the property saying it was raining inside the house than outside. He reviewed the record of the transaction and said inspections found that the roof was in perfect condition. He tried to communicate with the engineer who signed the report and to his surprise he was told that it had died thirty years ago and did not remember that they have inspected the property. After an arduous battle Dr. Pino got the realtor, who recommended inspectors, pay for the arrangements.
The conversation we held my friend Raul and lighting it up for the current mode to close properties that have the most financial companies, for the foreclosed properties. These companies do not take care to correct any defect or amend the building code violations that may have the property, leaving the work by the buyer to address any relevant illegality.
In certain municipalities in the county requires a seller to make an inspection of the property prior to sell the property, and correct defects established, besides bringing to code any illegality incurred in the inspection in question, before closing it. Worth noting that this happens when the real property belongs to an individual. However, if the property is part of the portfolio of a large company or a financial giant Freddy Mac, the municipality shall give permission to close the property and will be the responsibility of the buyer to repair and amend the illegalities in the time agreed with the municipality. Normally, 180 days.
Dr. Pino emphasized in our conversation the importance of the inspection process in any purchase of real property. I said again and again that this is the only time that the buyer can evaluate if you are making a good investment and if your money is well spent. According to their hypothesis, with which I agree, the buyer must select an accredited inspection company, without involving in selecting the selling agent or financial agent, much less a title company.
Conflicts of interest at times detrimental to the parties involved in the process. That is why the buyer should be documented very well about who he hired to investigate and defend him. A good source for information could be the lawyer to represent you, he will know who to recommend.Oh, and the day of inspections try to be present to know, first hand, what is happening on the property you intend to buy.
As a farewell, they do tell the story that my friend Raul.
According to him, there was a time that three days after closed a real estate deal, got the call from the buyers of the property saying it was raining inside the house than outside. He reviewed the record of the transaction and said inspections found that the roof was in perfect condition. He tried to communicate with the engineer who signed the report and to his surprise he was told that it had died thirty years ago and did not remember that they have inspected the property. After an arduous battle Dr. Pino got the realtor, who recommended inspectors, pay for the arrangements.
The complicated process of financing a purchase
In the sale of real estate in North America, there is a topic that is hub for buyers when analyzing the transaction: how to finance the purchase.
Mainly linked to strategies for growth factors of the investment portfolio, investors seek to employ in each acquisition the least amount of capital possible. Sometimes obtain desired by financial institutions; but preferably in the private sector looking to save time, eliminate errands to do and find flexibility in achieving their goals.
Those with experience in the field and know what they want and what suits them firsthand; but those who venture in the early years of his career as thorny investors in this field should be very alert of their making.
The points to consider are the penalties for prepayments of debt, the clauses governing the mortgage interest note and above all transparency in the chain of title to the property you are buying.
The key elements that motivate an owner to finance the property are selling: retirement plans, defer payment of accrued on capital gains, capital flow control, etc.. Of course, no one will say for what reason you want to finance the sale, so it is to be extreme measures to not buy a property that is in conflict with the building code of your municipality.
As this type of financing property inspection no further investigation or the same in the public records are required, it is very easy to hide behind a convenience for a defect or a problem that would prevent the financing of it through an entity commercial.
The first step for a buyer after having identified a property which will be funded by your retailer, is putting together a professional team to respond and protect their interests. This team should not miss a company recognized and accredited inspections, which will be responsible for inspecting and ensuring the physical condition of the subject property. An attorney specializing in real estate, which will check that the title is not defective in its chain, and weighing charges, demands or open permissions that prevent its transfer or condition the possibility of commercial property; and a counter to alert and advise on all financial.
In this type of trading is not advisable for buyers to sign any document without the approval of the attorney representing them, nor enter into any kind of agreement or negotiation in the absence of a real estate agent who specializes in the sale of commercial properties or entry.
In my many years in this turn of investment property, I have noticed that those who have succeeded have done delegating functions to professionals who have knowledge and experience in the field.
Mainly linked to strategies for growth factors of the investment portfolio, investors seek to employ in each acquisition the least amount of capital possible. Sometimes obtain desired by financial institutions; but preferably in the private sector looking to save time, eliminate errands to do and find flexibility in achieving their goals.
Those with experience in the field and know what they want and what suits them firsthand; but those who venture in the early years of his career as thorny investors in this field should be very alert of their making.
The points to consider are the penalties for prepayments of debt, the clauses governing the mortgage interest note and above all transparency in the chain of title to the property you are buying.
The key elements that motivate an owner to finance the property are selling: retirement plans, defer payment of accrued on capital gains, capital flow control, etc.. Of course, no one will say for what reason you want to finance the sale, so it is to be extreme measures to not buy a property that is in conflict with the building code of your municipality.
As this type of financing property inspection no further investigation or the same in the public records are required, it is very easy to hide behind a convenience for a defect or a problem that would prevent the financing of it through an entity commercial.
The first step for a buyer after having identified a property which will be funded by your retailer, is putting together a professional team to respond and protect their interests. This team should not miss a company recognized and accredited inspections, which will be responsible for inspecting and ensuring the physical condition of the subject property. An attorney specializing in real estate, which will check that the title is not defective in its chain, and weighing charges, demands or open permissions that prevent its transfer or condition the possibility of commercial property; and a counter to alert and advise on all financial.
In this type of trading is not advisable for buyers to sign any document without the approval of the attorney representing them, nor enter into any kind of agreement or negotiation in the absence of a real estate agent who specializes in the sale of commercial properties or entry.
In my many years in this turn of investment property, I have noticed that those who have succeeded have done delegating functions to professionals who have knowledge and experience in the field.
Tuesday, July 1, 2014
Real estate broker updates
As a success are qualified calls tables of analyzes that have been conducted both the Real Estate Chamber of Venezuela (CIV) as its subsidiary Real Estate Chamber Metropolitana (CIM), activities which aim to brokers real estate update knowledge of dynamics of this line of business, and thus increase their professional capacity.
Counsel Irma Lovera De Sola, a specialist in real estate law and legal consultant to the CIV, led table analysis which were evaluated various scenarios that are affected by the Partial Amendment to the Law on Real Estate Leasing Reform under study process the National Assembly.
This reform project is analyzed by the Subcommittee on Housing of the Committee on Public Service and Administration of the National Assembly and has received contributions from the sectors involved in the matter.
In the process, the legal consultant of the VSD has participated in the drafting of the comments that the housing association has submitted to the instance of Congress.
The table in question led Lovera Irma De Sola was a remarkable journey through participatory concern between real estate professionals in relation to the course that has acquired the reform bill. In this regard were analyzed various aspects such as the freezing of rents, something that the Government has been extended every six months since 2004. Another factor taken into account was the attempts to eliminate evictions and confiscation of property for lease to benefit tenants.
The table analysis reaffirmed the need for reform to achieve better relations between landlords and tenants equally, so that in this way the revival of the rental market is achieved, currently diminished.
Counsel Irma Lovera De Sola, a specialist in real estate law and legal consultant to the CIV, led table analysis which were evaluated various scenarios that are affected by the Partial Amendment to the Law on Real Estate Leasing Reform under study process the National Assembly.
This reform project is analyzed by the Subcommittee on Housing of the Committee on Public Service and Administration of the National Assembly and has received contributions from the sectors involved in the matter.
In the process, the legal consultant of the VSD has participated in the drafting of the comments that the housing association has submitted to the instance of Congress.
The table in question led Lovera Irma De Sola was a remarkable journey through participatory concern between real estate professionals in relation to the course that has acquired the reform bill. In this regard were analyzed various aspects such as the freezing of rents, something that the Government has been extended every six months since 2004. Another factor taken into account was the attempts to eliminate evictions and confiscation of property for lease to benefit tenants.
The table analysis reaffirmed the need for reform to achieve better relations between landlords and tenants equally, so that in this way the revival of the rental market is achieved, currently diminished.
Thursday, June 26, 2014
The Canadian housing market resists while housing prices continue to rise
After several years of warnings about the Canadian housing market, home prices continue to increase, reaching new highs despite negative expectations and continuous alerts, the housing industry in the country continues its growth process.
Analysts claim that is not yet claim victory around the stability of the housing market, the concern exemplified in Toronto apartment sector, which, despite these positive expectations for anything, still exceeds the perception and growing .
Scotiabank economist Derek Holt said in a report published recently warned that "it is too early to relax around the Canadian housing market." For the specialist, it is necessary for the surveillance and monitoring continue.
Returning to the example of the Toronto market, statistics show that sales of new apartments were 22% higher than what was recorded 12 months ago. Prices, meanwhile, advanced 1% (although the specialists asserted in their forecasts that they would fall), and ranked, on average, $ 437,773, according to RealNet Canada Inc. This year alone has sold 8,305 condos in this city, representing an increase of 33% compared to 2013, which is 10% above the average of the last 10 years.
Analysts following the best results, insist that the theory indicates that no significant price falls will be in the coming months.
Meanwhile, experts warn that the real test for the country's property market will happen when interest rates rise.
In this panorama, there are those who also maintain his thesis that the risk of housing bubble has not completely ruled out, such as David Madani of Capital Economics, interviewed by The Globe and Mail. The problems are obvious, says Madani, arguing that exists in the market overvaluation, excessive new structures and high household debt.
The most pessimistic analysts point out that in the United States were in denial about the housing bubble that was recorded prior to the recession. Refer to the same time that the Canadian housing market remains more alert lit outside the country within the national territory, referring, of course, to warnings made months ago by the IMF and OECD.
The Bank of Canada, meanwhile, said in its forecast earlier this month that a sharp correction in the housing market ranks first among the risks that currently has the Canadian financial system, emphasizing, in the same report, concerns about market condos in Toronto.
Analysts claim that is not yet claim victory around the stability of the housing market, the concern exemplified in Toronto apartment sector, which, despite these positive expectations for anything, still exceeds the perception and growing .
Scotiabank economist Derek Holt said in a report published recently warned that "it is too early to relax around the Canadian housing market." For the specialist, it is necessary for the surveillance and monitoring continue.
Returning to the example of the Toronto market, statistics show that sales of new apartments were 22% higher than what was recorded 12 months ago. Prices, meanwhile, advanced 1% (although the specialists asserted in their forecasts that they would fall), and ranked, on average, $ 437,773, according to RealNet Canada Inc. This year alone has sold 8,305 condos in this city, representing an increase of 33% compared to 2013, which is 10% above the average of the last 10 years.
Analysts following the best results, insist that the theory indicates that no significant price falls will be in the coming months.
Meanwhile, experts warn that the real test for the country's property market will happen when interest rates rise.
In this panorama, there are those who also maintain his thesis that the risk of housing bubble has not completely ruled out, such as David Madani of Capital Economics, interviewed by The Globe and Mail. The problems are obvious, says Madani, arguing that exists in the market overvaluation, excessive new structures and high household debt.
The most pessimistic analysts point out that in the United States were in denial about the housing bubble that was recorded prior to the recession. Refer to the same time that the Canadian housing market remains more alert lit outside the country within the national territory, referring, of course, to warnings made months ago by the IMF and OECD.
The Bank of Canada, meanwhile, said in its forecast earlier this month that a sharp correction in the housing market ranks first among the risks that currently has the Canadian financial system, emphasizing, in the same report, concerns about market condos in Toronto.
Subscribe to:
Posts (Atom)
