Wednesday, February 14, 2007
Saturday, January 27, 2007
Monthly New-Home Sales Rise,But Year Is Worst Since 1990
Monthly New-Home Sales Rise,
But Year Is Worst Since 1990
By Jeff Bater
From The Wall Street Journal Online
New-home sales finished 2006 on a positive note, rising a second straight month in December, but demand for the whole year took its biggest tumble since 1990.
Separately, durable-goods orders climbed last month, boosted by a sharp jump in orders for commercial aircraft, though demand rose across the board. Business-equipment spending rebounded.
In the home-sales report, sales of single-family homes increased by 4.8% to a seasonally adjusted annual rate of 1.120 million, the Commerce Department said Friday. November sales rose 7.4% to 1.069 million, revised from a previously estimated 3.4% advance to 1.047 million.
Related Link
Drop in Existing-Home Sales For 2006 Is Sharpest in 24 Years
Economists had expected a 1.2% increase to an annual rate of 1.060 million last month.
On a not seasonally adjusted basis, new-home sales fell 17.3% in 2006 to an estimated level of 1.061 million, the largest drop since 17.8% in 1990. The housing sector has restrained economic growth, which slowed in the third quarter to a 2.0% pace. The housing component of gross domestic product plummeted by 18.7%, which was the sharpest drop in 15 years and robbed GDP of 1.20 percentage points.
Surging demand in certain markets across the U.S. during the housing boom sent prices skyward and builders breaking ground. Sales peaked in 2005 and began receding, while inventories climbed, which slowed builders down.
New-home inventories fell in December, a sign builders are getting supply under control. There were an estimated 537,000 homes for sale at the end of the month -- the lowest level since 522,000 in January 2006, the government data showed. That represented a 5.9 months' supply at the current sales rate. An estimated 542,000 homes were for sale at the end of November, a 6.1 months' inventory. In December 2005, the supply was 4.8 months.
Prices were down a bit. The average price of a new home decreased to $290,100 from $290,800 in November and below $290,200 in December 2005. The median price rose to $235,000 last month from $232,200 in November but was lower than the year-earlier level of $238,600.
Financing costs drifted down in December. The average rate on a 30-year mortgage was 6.14%, lower than 6.24% a month earlier and 6.27% in December 2005.
By region, new-home sales last month rose 26.6% in the Midwest, 27.3% in the Northeast, and 0.3% in the South. Demand fell 4.4% in the West. Based on figures unadjusted for seasonal factors, an estimated 76,000 homes were actually sold last month in the U.S., up from 75,000 in November.
Spending on Durable Goods Climbs
Orders for durable goods, big-ticket items such as cars and appliances meant to last three years or more, advanced 3.1% last month to a seasonally adjusted $221.87 billion, the Commerce Department said Friday. Durables rose 2.2% in November, revised from a previously estimated 1.6% increase. For all of 2006, durables rose at a not seasonally adjusted 7.0%, after rising 8.6% during 2005.
Orders for commercial planes increased 26.5% last month, while military aircraft orders rose 20.5%. Overall, transportation orders were up 4.8%, after rising 10.2% in November. However, a key barometer of business-equipment spending -- orders for nondefense capital goods excluding aircraft -- increased by 2.4%, after falling 1.0% in November.
While demand was up across the board, the overall 3.1% rise in durable-goods orders fell short of the 3.9% economists had expected, according to a survey by Dow Jones Newswires.
Motor vehicles and parts orders increased by 6.8% last month; for the year, on a not seasonally adjusted basis, motor vehicle bookings were 2.2% lower. Orders for all durables except transportation goods increased 2.3%, after falling 1.0% in November. Demand increased 2.5% for fabricated metals, 4.5% for primary metals, 5.0% for machinery, and 1.0% for computers and electronics. Demand decreased 1.4% for electrical equipment.
Capital-goods orders rose by 5.5% last month. Nondefense capital goods -- items meant to last 10 years or longer -- increased 9.0%. Defense-related capital goods orders fell 17.5%. Inventories rose 0.4%. Unfilled orders, a sign of future demand, rose 2.3%.
But Year Is Worst Since 1990
By Jeff Bater
From The Wall Street Journal Online
New-home sales finished 2006 on a positive note, rising a second straight month in December, but demand for the whole year took its biggest tumble since 1990.
Separately, durable-goods orders climbed last month, boosted by a sharp jump in orders for commercial aircraft, though demand rose across the board. Business-equipment spending rebounded.
In the home-sales report, sales of single-family homes increased by 4.8% to a seasonally adjusted annual rate of 1.120 million, the Commerce Department said Friday. November sales rose 7.4% to 1.069 million, revised from a previously estimated 3.4% advance to 1.047 million.
Related Link
Drop in Existing-Home Sales For 2006 Is Sharpest in 24 Years
Economists had expected a 1.2% increase to an annual rate of 1.060 million last month.
On a not seasonally adjusted basis, new-home sales fell 17.3% in 2006 to an estimated level of 1.061 million, the largest drop since 17.8% in 1990. The housing sector has restrained economic growth, which slowed in the third quarter to a 2.0% pace. The housing component of gross domestic product plummeted by 18.7%, which was the sharpest drop in 15 years and robbed GDP of 1.20 percentage points.
Surging demand in certain markets across the U.S. during the housing boom sent prices skyward and builders breaking ground. Sales peaked in 2005 and began receding, while inventories climbed, which slowed builders down.
New-home inventories fell in December, a sign builders are getting supply under control. There were an estimated 537,000 homes for sale at the end of the month -- the lowest level since 522,000 in January 2006, the government data showed. That represented a 5.9 months' supply at the current sales rate. An estimated 542,000 homes were for sale at the end of November, a 6.1 months' inventory. In December 2005, the supply was 4.8 months.
Prices were down a bit. The average price of a new home decreased to $290,100 from $290,800 in November and below $290,200 in December 2005. The median price rose to $235,000 last month from $232,200 in November but was lower than the year-earlier level of $238,600.
Financing costs drifted down in December. The average rate on a 30-year mortgage was 6.14%, lower than 6.24% a month earlier and 6.27% in December 2005.
By region, new-home sales last month rose 26.6% in the Midwest, 27.3% in the Northeast, and 0.3% in the South. Demand fell 4.4% in the West. Based on figures unadjusted for seasonal factors, an estimated 76,000 homes were actually sold last month in the U.S., up from 75,000 in November.
Spending on Durable Goods Climbs
Orders for durable goods, big-ticket items such as cars and appliances meant to last three years or more, advanced 3.1% last month to a seasonally adjusted $221.87 billion, the Commerce Department said Friday. Durables rose 2.2% in November, revised from a previously estimated 1.6% increase. For all of 2006, durables rose at a not seasonally adjusted 7.0%, after rising 8.6% during 2005.
Orders for commercial planes increased 26.5% last month, while military aircraft orders rose 20.5%. Overall, transportation orders were up 4.8%, after rising 10.2% in November. However, a key barometer of business-equipment spending -- orders for nondefense capital goods excluding aircraft -- increased by 2.4%, after falling 1.0% in November.
While demand was up across the board, the overall 3.1% rise in durable-goods orders fell short of the 3.9% economists had expected, according to a survey by Dow Jones Newswires.
Motor vehicles and parts orders increased by 6.8% last month; for the year, on a not seasonally adjusted basis, motor vehicle bookings were 2.2% lower. Orders for all durables except transportation goods increased 2.3%, after falling 1.0% in November. Demand increased 2.5% for fabricated metals, 4.5% for primary metals, 5.0% for machinery, and 1.0% for computers and electronics. Demand decreased 1.4% for electrical equipment.
Capital-goods orders rose by 5.5% last month. Nondefense capital goods -- items meant to last 10 years or longer -- increased 9.0%. Defense-related capital goods orders fell 17.5%. Inventories rose 0.4%. Unfilled orders, a sign of future demand, rose 2.3%.
Monday, January 22, 2007
Builders Look for Housing To Recover in 2007
By John Spence
From MarketWatch
Homebuyers have been backing out of sales contracts and forfeiting their down payments during the housing slowdown, but cancellation rates should steady in the first quarter and taper off later in 2007, said the chief executive of one of the nation's largest home builders Thursday.
"Cancellations are likely to stabilize and stay level this quarter, and then decrease," said Ara Hovnanian during a Web cast of a real estate conference sponsored by Deutsche Bank in New York, adding cancellations should get back to "normalcy in a quarter or two."
The Hovnanian CEO said many cancellations are for older contracts signed when the market was booming and home prices were rising. He said one way the company is avoiding cancellations is to negotiate with buyers at the closing table.
Related Link
Builders Poised to Post Big Profit Drops
"We don't like to do it, but it can prevent cancellations," Hovnanian said.
Home builders have been reporting surging cancellation rates driven higher by sagging consumer confidence and difficulty in selling existing homes.
When asked to pick an indicator he's looking at to spot a potential bottom for housing, Hovnanian said "we're watching [home] resale listings, which is something we never used to focus on."
Home builders face an inventory glut sparked by overbuilding and speculative demand drying up, but are hoping the spring selling season can jumpstart a recovery in 2007.
"The time between Thanksgiving and the Super Bowl is a slow time, so it's difficult to gauge anything," Hovnanian said. "We're waiting to see if things stabilize."
Meanwhile, Toll Brothers Inc. Chief Financial Officer Joel Rassman said the speed of various markets' recoveries will depend on the amount of "speculative" building and the use of incentives.
Home builders have ramped up concessions to buyers such as appliance upgrades and financing breaks in order to move homes in inventory. For example, Lennar Corp. earlier this week said sales incentives offered to homebuyers averaged $47,300 per home in the fourth quarter, up from $10,600 the previous year.
Rassman said buyers are putting off home purchases because they think the house may end up being cheaper soon. The CFO said the luxury builder is closely watching buyer traffic at its communities and reservation deposits to get a handle on where the market is heading. It also conducts "soft" interviews during home tours to see if people are "real buyers" or what the company calls "tire-kickers."
If local housing markets and economies bounce back, there could be some consolidation in the home-building business, especially with larger public companies snapping up smaller private competitors, Rassman said.
"There was no [spring] selling season last year, and if it happens again a lot of the smaller private builders won't be around the next selling season," he said.
From MarketWatch
Homebuyers have been backing out of sales contracts and forfeiting their down payments during the housing slowdown, but cancellation rates should steady in the first quarter and taper off later in 2007, said the chief executive of one of the nation's largest home builders Thursday.
"Cancellations are likely to stabilize and stay level this quarter, and then decrease," said Ara Hovnanian during a Web cast of a real estate conference sponsored by Deutsche Bank in New York, adding cancellations should get back to "normalcy in a quarter or two."
The Hovnanian CEO said many cancellations are for older contracts signed when the market was booming and home prices were rising. He said one way the company is avoiding cancellations is to negotiate with buyers at the closing table.
Related Link
Builders Poised to Post Big Profit Drops
"We don't like to do it, but it can prevent cancellations," Hovnanian said.
Home builders have been reporting surging cancellation rates driven higher by sagging consumer confidence and difficulty in selling existing homes.
When asked to pick an indicator he's looking at to spot a potential bottom for housing, Hovnanian said "we're watching [home] resale listings, which is something we never used to focus on."
Home builders face an inventory glut sparked by overbuilding and speculative demand drying up, but are hoping the spring selling season can jumpstart a recovery in 2007.
"The time between Thanksgiving and the Super Bowl is a slow time, so it's difficult to gauge anything," Hovnanian said. "We're waiting to see if things stabilize."
Meanwhile, Toll Brothers Inc. Chief Financial Officer Joel Rassman said the speed of various markets' recoveries will depend on the amount of "speculative" building and the use of incentives.
Home builders have ramped up concessions to buyers such as appliance upgrades and financing breaks in order to move homes in inventory. For example, Lennar Corp. earlier this week said sales incentives offered to homebuyers averaged $47,300 per home in the fourth quarter, up from $10,600 the previous year.
Rassman said buyers are putting off home purchases because they think the house may end up being cheaper soon. The CFO said the luxury builder is closely watching buyer traffic at its communities and reservation deposits to get a handle on where the market is heading. It also conducts "soft" interviews during home tours to see if people are "real buyers" or what the company calls "tire-kickers."
If local housing markets and economies bounce back, there could be some consolidation in the home-building business, especially with larger public companies snapping up smaller private competitors, Rassman said.
"There was no [spring] selling season last year, and if it happens again a lot of the smaller private builders won't be around the next selling season," he said.
Saturday, January 20, 2007
article
By Ben Casselman
From The Wall Street Journal Online
Last year proved to be a tough one to sell a house. In many parts of the country, sales were down, inventories were up and homes lingered longer on the market. In August, the median price of an existing single-family home fell 1.7% compared with a year earlier, the first year-to-year price decline in more than a decade, and prices continued to fall for the remainder of 2006, according to the National Association of Realtors.
The high end of the market wasn't immune, either, as evidenced by the lackluster sales of the homes highlighted in Weekend Journal's "House of the Week." Of the 46 houses featured between October 2005 and September 2006, only 14 have sold, most at steep discounts -- an average of 16% below the asking price published in our column; another four are in contract. Timing was also critical: Only one house featured since June has found a buyer. (None of those featured in the fourth quarter of 2006 have sold, but they aren't included in this survey because most have only recently come on the market.)
Homes featured in House of the Week aren't representative of the national housing market. For one thing, they tend to be high-end properties: the average asking price for the homes in our sample was nearly $10 million, while only one asked less than $1 million. They are also selected for other qualities -- noteworthy architecture, colorful histories or singular locations -- that set them apart even from other luxury homes.
House of the Week
See a photo slide show of this week's House of the Week.
Still, their sales performance has generally followed national patterns. Overall sales volume peaked in mid 2005 and then declined steadily throughout most of 2006, according to the National Association of Realtors, and existing home sales in November 2006 were down 11% compared with the previous year. The same held true for the Houses of the Week. Of the 23 properties featured from October 2005 through March 2006 -- when the overall market was relatively strong -- 12 have sold or are in contract, compared with just six of those featured during the following six months.
The properties that were most likely to find a buyer were those with the highest price tags. Half of the Houses of the Week with asking prices of $15 million or more have sold, versus just over a quarter of those asking less than $15 million. That, too, follows a national trend, according to Jonathan Miller, president of the New York appraisal firm Miller Samuel. "Super luxury" homes have continued to sell in high numbers, he says, though not necessarily close to their asking prices. In fact, one reason they tend to sell, Mr. Miller says, is because their owners can be more flexible; these deals don't live or die over a $5 million difference. And unlike the general housing market, which is strongly affected by interest-rate fluctuations, upscale home sales tend to be more sensitive to the stock market and the overall economy because buyers are more likely to pay in cash.
San Lee, the owner of a 10,000-square-foot waterfront mansion in Palm Beach, where the market remains healthy, actually raised her asking price recently, to $22 million from $18.5 million. That builds in room to negotiate, says listing agent Wallace Turner of Sotheby's International Realty. At the same time, "the buyers feel that they're getting a value, even though we're settling it at about the same price in the end," Mr. Turner says.
Most sellers, however, moved in the opposite direction. About half of the House of the Week properties still on the market have had a price cut since they appeared in the column, in one case by 35%. Others have been taken off the market entirely, although many sellers say they will try again when the market improves. It may be a while, according to Mark Zandi, chief economist for Moody's Economy.com. "There's still a lot of oversupply," even at the high end, he says. "I think the correction really has a year left to run."
Here's a sampling of four Houses of the Week in different parts of the country.
SOLD: Southern California oceanfront contemporary, for $27 million.
This 3,544-square-foot home in Carpinteria, about 12 miles south of Santa Barbara, sold for 77% of its $35 million asking price, but Charlene and Sherrill Broudy say that's still far more than they expected before they put it on the market in the spring. The asking price was "a shot in the dark," Ms. Broudy says. The value in the 1.7-acre property lay primarily in its seaside location -- with 150 feet of beachfront -- rather than the house itself -- a four-bedroom home built in 1980 (which Ms. Broudy says needed work). Listing agent Kathleen St. James of Sotheby's International Realty moved into the house while the owners were away in Costa Rica and cleaned it up, a project that included pressure-washing and oiling its redwood exterior. The May 5 "House of the Week" sold in 60 days. The buyer, local venture capitalist Brian Kelly, saw the property in its first week on the market, before Ms. St. James's cleaning job, and submitted the only serious bid. "You don't have that many people calling you up to spend that kind of money," Ms. St. James says. "Sometimes you get lucky."
AVAILABLE: 319-acre Montana ranch on the Yellowstone River. Asking $13.5 million.
Dan and Barbara Todd recently cut 10% off the $15 million price of their ranch in Livingston, about 26 miles southeast of Bozeman, after it had been listed for about a year. Mr. Todd says the price cut was a response to a softening market -- Montana ranch sales volume is down from last year, though prices have continued to rise -- and to signal that he is ready to make a deal. The property includes a recently built six-bedroom, 6,400-square-foot main house, a guest cottage and a one-bedroom barn/artist studio.
This is the eighth ranch that the Todds have bought and sold, but the first that is primarily recreational, not agricultural. "When I show the property, I don't know whether someone wants to shoot a deer or look at it," Mr. Todd says. He isn't concerned that the house, which was featured on March 17, has yet to attract a buyer. Listing agent David Johnson of Hall & Hall says ranches usually stay on the market at least a year.
SOLD: Connecticut midcentury modern with pedigree, for $3.75 million.
This Philip Johnson-designed house in New Canaan went into contract within four months of being listed, albeit at a 12% reduction, from $4.25 million. The sale closed in just six months. Meanwhile, sales volume in Fairfield County, Conn., was down nearly 15% in the first three quarters of 2006 compared with the same period in 2005. Listing agent Susan E. Blabey of William Pitt Sotheby's International Realty attributes the modern home's speedy sale to its being "100% pure Philip Johnson," practically unchanged since the award-winning architect designed it in 1950. Not that there weren't challenges to overcome, including strict preservation easements that protected the land, the house and even some of the interior features. The "House of the Week" for June 9, had also been vacant two years and needed work.
But Craig Bassam and Scott Fellows knew what they were getting into. The buyers run the design firm BassamFellows and also own another vintage modern in New Canaan, which they're selling.
AVAILABLE: Low Country home on a South Carolina island. Asking $1.95 million.
This four-bedroom, nearly 5,000-square-foot home on Daufuskie Island, a second-home area about a mile from Hilton Head Island, came on the market in July 2005, just missing the area's primary selling season. Interest picked up the following spring, says listing agent Catherine Donaldson of Cora Bett Thomas Realty, but then the market hit a severe slump in the summer. (The home was featured on June 16, 2006.) The owners -- Detroit Red Wings center Robert Lang and his wife, Jennifer -- cut the price in August, but by then it was too late, Donaldson says. She adds that the 21% cut has generated interest, but mostly low-ball offers. "When you drop a price that much, you give the impression that it's a fire sale, and it's not." It doesn't help that Daufuskie Island is accessible only by water. "It is tough to sell a home on an island you can only get to by boat," she says.
From The Wall Street Journal Online
Last year proved to be a tough one to sell a house. In many parts of the country, sales were down, inventories were up and homes lingered longer on the market. In August, the median price of an existing single-family home fell 1.7% compared with a year earlier, the first year-to-year price decline in more than a decade, and prices continued to fall for the remainder of 2006, according to the National Association of Realtors.
The high end of the market wasn't immune, either, as evidenced by the lackluster sales of the homes highlighted in Weekend Journal's "House of the Week." Of the 46 houses featured between October 2005 and September 2006, only 14 have sold, most at steep discounts -- an average of 16% below the asking price published in our column; another four are in contract. Timing was also critical: Only one house featured since June has found a buyer. (None of those featured in the fourth quarter of 2006 have sold, but they aren't included in this survey because most have only recently come on the market.)
Homes featured in House of the Week aren't representative of the national housing market. For one thing, they tend to be high-end properties: the average asking price for the homes in our sample was nearly $10 million, while only one asked less than $1 million. They are also selected for other qualities -- noteworthy architecture, colorful histories or singular locations -- that set them apart even from other luxury homes.
House of the Week
See a photo slide show of this week's House of the Week.
Still, their sales performance has generally followed national patterns. Overall sales volume peaked in mid 2005 and then declined steadily throughout most of 2006, according to the National Association of Realtors, and existing home sales in November 2006 were down 11% compared with the previous year. The same held true for the Houses of the Week. Of the 23 properties featured from October 2005 through March 2006 -- when the overall market was relatively strong -- 12 have sold or are in contract, compared with just six of those featured during the following six months.
The properties that were most likely to find a buyer were those with the highest price tags. Half of the Houses of the Week with asking prices of $15 million or more have sold, versus just over a quarter of those asking less than $15 million. That, too, follows a national trend, according to Jonathan Miller, president of the New York appraisal firm Miller Samuel. "Super luxury" homes have continued to sell in high numbers, he says, though not necessarily close to their asking prices. In fact, one reason they tend to sell, Mr. Miller says, is because their owners can be more flexible; these deals don't live or die over a $5 million difference. And unlike the general housing market, which is strongly affected by interest-rate fluctuations, upscale home sales tend to be more sensitive to the stock market and the overall economy because buyers are more likely to pay in cash.
San Lee, the owner of a 10,000-square-foot waterfront mansion in Palm Beach, where the market remains healthy, actually raised her asking price recently, to $22 million from $18.5 million. That builds in room to negotiate, says listing agent Wallace Turner of Sotheby's International Realty. At the same time, "the buyers feel that they're getting a value, even though we're settling it at about the same price in the end," Mr. Turner says.
Most sellers, however, moved in the opposite direction. About half of the House of the Week properties still on the market have had a price cut since they appeared in the column, in one case by 35%. Others have been taken off the market entirely, although many sellers say they will try again when the market improves. It may be a while, according to Mark Zandi, chief economist for Moody's Economy.com. "There's still a lot of oversupply," even at the high end, he says. "I think the correction really has a year left to run."
Here's a sampling of four Houses of the Week in different parts of the country.
SOLD: Southern California oceanfront contemporary, for $27 million.
This 3,544-square-foot home in Carpinteria, about 12 miles south of Santa Barbara, sold for 77% of its $35 million asking price, but Charlene and Sherrill Broudy say that's still far more than they expected before they put it on the market in the spring. The asking price was "a shot in the dark," Ms. Broudy says. The value in the 1.7-acre property lay primarily in its seaside location -- with 150 feet of beachfront -- rather than the house itself -- a four-bedroom home built in 1980 (which Ms. Broudy says needed work). Listing agent Kathleen St. James of Sotheby's International Realty moved into the house while the owners were away in Costa Rica and cleaned it up, a project that included pressure-washing and oiling its redwood exterior. The May 5 "House of the Week" sold in 60 days. The buyer, local venture capitalist Brian Kelly, saw the property in its first week on the market, before Ms. St. James's cleaning job, and submitted the only serious bid. "You don't have that many people calling you up to spend that kind of money," Ms. St. James says. "Sometimes you get lucky."
AVAILABLE: 319-acre Montana ranch on the Yellowstone River. Asking $13.5 million.
Dan and Barbara Todd recently cut 10% off the $15 million price of their ranch in Livingston, about 26 miles southeast of Bozeman, after it had been listed for about a year. Mr. Todd says the price cut was a response to a softening market -- Montana ranch sales volume is down from last year, though prices have continued to rise -- and to signal that he is ready to make a deal. The property includes a recently built six-bedroom, 6,400-square-foot main house, a guest cottage and a one-bedroom barn/artist studio.
This is the eighth ranch that the Todds have bought and sold, but the first that is primarily recreational, not agricultural. "When I show the property, I don't know whether someone wants to shoot a deer or look at it," Mr. Todd says. He isn't concerned that the house, which was featured on March 17, has yet to attract a buyer. Listing agent David Johnson of Hall & Hall says ranches usually stay on the market at least a year.
SOLD: Connecticut midcentury modern with pedigree, for $3.75 million.
This Philip Johnson-designed house in New Canaan went into contract within four months of being listed, albeit at a 12% reduction, from $4.25 million. The sale closed in just six months. Meanwhile, sales volume in Fairfield County, Conn., was down nearly 15% in the first three quarters of 2006 compared with the same period in 2005. Listing agent Susan E. Blabey of William Pitt Sotheby's International Realty attributes the modern home's speedy sale to its being "100% pure Philip Johnson," practically unchanged since the award-winning architect designed it in 1950. Not that there weren't challenges to overcome, including strict preservation easements that protected the land, the house and even some of the interior features. The "House of the Week" for June 9, had also been vacant two years and needed work.
But Craig Bassam and Scott Fellows knew what they were getting into. The buyers run the design firm BassamFellows and also own another vintage modern in New Canaan, which they're selling.
AVAILABLE: Low Country home on a South Carolina island. Asking $1.95 million.
This four-bedroom, nearly 5,000-square-foot home on Daufuskie Island, a second-home area about a mile from Hilton Head Island, came on the market in July 2005, just missing the area's primary selling season. Interest picked up the following spring, says listing agent Catherine Donaldson of Cora Bett Thomas Realty, but then the market hit a severe slump in the summer. (The home was featured on June 16, 2006.) The owners -- Detroit Red Wings center Robert Lang and his wife, Jennifer -- cut the price in August, but by then it was too late, Donaldson says. She adds that the 21% cut has generated interest, but mostly low-ball offers. "When you drop a price that much, you give the impression that it's a fire sale, and it's not." It doesn't help that Daufuskie Island is accessible only by water. "It is tough to sell a home on an island you can only get to by boat," she says.
Friday, January 19, 2007
Colour Capital
Colour Capital - Off plan investment property from the UK's leading property investment company Colour Capital specialise in off plan property investment opportunities. They offer discounted off plan property and with specialist investment mortgage advice, they make buying investment property easy, straightforward and profitable.
Thursday, January 18, 2007
How to Cut Your Property Taxes;
How to Cut Your Property Taxes;
IRAs for Home Purchases
By Kimberly Lankford
From MarketWatch
Question: The rural county where I live has just reassessed real estate values, and my home's assessment more than tripled, as did most others in the country. The assessed value is now more than my most recent property appraisal. Should I appeal? What information would I have to present?
Answer: Go for it. As many as 60% of homes are assessed for too much, estimates Pete Sepp, of the National Taxpayers Union, and about 33% of property-tax appeals succeed.
Procedures vary, but you generally have 30 to 60 days after receiving an assessment notice to file an appeal. Ask the assessor's office for a copy of your property card, which documents the information on which the assessment was based. If the card lists the wrong number of rooms or square footage, for example, you may be able to get your assessment changed without a formal appeal.
If the information is accurate, go to Zillow.com to see how your home's assessment stacks up against others in your neighborhood. If you find that similar homes are assessed at a lower value, you may have a strong case.
If you spot big discrepancies, check your local assessor's office's records for more details on homes with similar features and lower assessments. Or find comparable assessments and explain why your home's value should be lower, says Sepp, whose organization publishes the helpful brochure How to Fight Property Taxes ($6.95). Some jurisdictions also allow you to submit as evidence market-value information, such as your recent appraisal.
Question: My wife and I just bought our first house. Within a week after closing, we found out that you can use your IRA toward a first-time home purchase, and each person can withdraw $10,000 toward "qualified acquisition costs." We have an 80-10-10 mortgage (80% from the first mortgage, 10% second mortgage, 10% down). Can each of use withdraw $10,000 from our IRAs without paying a penalty if we put the money toward paying off the second mortgage?
Answer: Good idea, but the answer is no. You can't take an IRA distribution to pay off any mortgage, regardless of whether it's a first or a second loan.
First-time home buyers (which the IRS defines as anyone who hasn't owned a house within the past two years) can avoid the 10% early-withdrawal penalty only if they use the IRA money to pay qualified acquisition costs for a principal residence before the end of the 120th day after withdrawing the money.
Qualified expenses include acquiring, constructing or rebuilding a residence. Closing costs are covered, but paying off a loan isn't, says Greg Rosica, a tax partner with Ernst & Young. Nor can you withdraw the money after the fact and treat the distribution as though the cash had been used for the down payment you've already made, says Bob D. Scharin of Thomson Tax & Accounting.
For more information about rules for IRA withdrawals, see IRS Publication 590, Individual Retirement Arrangements.
IRAs for Home Purchases
By Kimberly Lankford
From MarketWatch
Question: The rural county where I live has just reassessed real estate values, and my home's assessment more than tripled, as did most others in the country. The assessed value is now more than my most recent property appraisal. Should I appeal? What information would I have to present?
Answer: Go for it. As many as 60% of homes are assessed for too much, estimates Pete Sepp, of the National Taxpayers Union, and about 33% of property-tax appeals succeed.
Procedures vary, but you generally have 30 to 60 days after receiving an assessment notice to file an appeal. Ask the assessor's office for a copy of your property card, which documents the information on which the assessment was based. If the card lists the wrong number of rooms or square footage, for example, you may be able to get your assessment changed without a formal appeal.
If the information is accurate, go to Zillow.com to see how your home's assessment stacks up against others in your neighborhood. If you find that similar homes are assessed at a lower value, you may have a strong case.
If you spot big discrepancies, check your local assessor's office's records for more details on homes with similar features and lower assessments. Or find comparable assessments and explain why your home's value should be lower, says Sepp, whose organization publishes the helpful brochure How to Fight Property Taxes ($6.95). Some jurisdictions also allow you to submit as evidence market-value information, such as your recent appraisal.
Question: My wife and I just bought our first house. Within a week after closing, we found out that you can use your IRA toward a first-time home purchase, and each person can withdraw $10,000 toward "qualified acquisition costs." We have an 80-10-10 mortgage (80% from the first mortgage, 10% second mortgage, 10% down). Can each of use withdraw $10,000 from our IRAs without paying a penalty if we put the money toward paying off the second mortgage?
Answer: Good idea, but the answer is no. You can't take an IRA distribution to pay off any mortgage, regardless of whether it's a first or a second loan.
First-time home buyers (which the IRS defines as anyone who hasn't owned a house within the past two years) can avoid the 10% early-withdrawal penalty only if they use the IRA money to pay qualified acquisition costs for a principal residence before the end of the 120th day after withdrawing the money.
Qualified expenses include acquiring, constructing or rebuilding a residence. Closing costs are covered, but paying off a loan isn't, says Greg Rosica, a tax partner with Ernst & Young. Nor can you withdraw the money after the fact and treat the distribution as though the cash had been used for the down payment you've already made, says Bob D. Scharin of Thomson Tax & Accounting.
For more information about rules for IRA withdrawals, see IRS Publication 590, Individual Retirement Arrangements.
Great Article
Selling your own home can save you a great deal of money, money you could use to put towards your next home!
A for sale by owner open house is an excellent way to get your home sold fast.
Many for sale by owner home sellers have successfully sold their homes by taking just one weekend and opening up their house to prospective buyers.
There's a very good chance that a friend, relative, or neighbor of yours knows someone who is looking for a house.
By advertising your for sale by owner open house, it gives buyers a chance to come by and see what you are offering.
The first thing for you to do is choose a date and time for your for sale by owner open house.
Weekends are the best time because most people are off work. Saturday afternoon or Sunday are the best times.
Check the community calendar of events to make sure that there are no conflicting events with the date you choose for your for sale by owner open house.
Here are some tips for a successful for sale by owner open house:
To make your home look spacious bring as much light into the home as possible. You can do this by opening the blinds and curtains and turning on all the lights.
Pay close attention to entrance light in your foyer, dining room and living room.
Allow buyers to envision themselves in the home. If you have too much of your own personal effects in your home, this will be difficult.
Remove family photographs from the walls and tabletops. Not only will the sparse decoration enable the buyer to imagine living in the home, it will also create the illusion of a larger space.
Create a welcoming aroma in your home. You can do this by baking cookies or bread or by boiling cinnamon sticks. Put bowls filled will potpourri in the bathrooms and bedrooms so the aroma will be present in every room in the house.
Fresh towels and soap in bathrooms will give off a fresh scent. If you have pets, put them away and clean their areas. People who are allergic or afraid of pets may be turned off to the home because of the presence of pets.
Have as few distractions as possible during your for sale by owner open house. Arrange for your children to visit a neighbor or friend so you can give your full attention to showing the home. Do not turn on the television as this can also distract buyers from the showing.
Never apologize for anything in the home during the for sale by owner open house.
Before the start of the for sale by owner open house, you should gather a few essentials. Prepare a guest book in which buyers can write their contact information. You can use this guest book to keep notes of the buyers that show interest so you can contact them later on.
Blank sales contracts are necessary because someone might want to buy your home during the for sale by owner open house.
You can purchase real estate sales contracts from a major office supply store like Office Depot or Office Max.
Finally, prepare a flyer that buyers can take with them. Include a photo of the home, facts about the home, the listing price, and your contact information. If you have a web page advertising your home, be sure to include the web address.
Use these tips and you will sell your house in no time.
Did you know there are an estimated 8 million plots of unclaimed land and real estate in this country?
To download a free ebook that shows you how to claim your share,please visit: http://www.freelandproperty.com
A for sale by owner open house is an excellent way to get your home sold fast.
Many for sale by owner home sellers have successfully sold their homes by taking just one weekend and opening up their house to prospective buyers.
There's a very good chance that a friend, relative, or neighbor of yours knows someone who is looking for a house.
By advertising your for sale by owner open house, it gives buyers a chance to come by and see what you are offering.
The first thing for you to do is choose a date and time for your for sale by owner open house.
Weekends are the best time because most people are off work. Saturday afternoon or Sunday are the best times.
Check the community calendar of events to make sure that there are no conflicting events with the date you choose for your for sale by owner open house.
Here are some tips for a successful for sale by owner open house:
To make your home look spacious bring as much light into the home as possible. You can do this by opening the blinds and curtains and turning on all the lights.
Pay close attention to entrance light in your foyer, dining room and living room.
Allow buyers to envision themselves in the home. If you have too much of your own personal effects in your home, this will be difficult.
Remove family photographs from the walls and tabletops. Not only will the sparse decoration enable the buyer to imagine living in the home, it will also create the illusion of a larger space.
Create a welcoming aroma in your home. You can do this by baking cookies or bread or by boiling cinnamon sticks. Put bowls filled will potpourri in the bathrooms and bedrooms so the aroma will be present in every room in the house.
Fresh towels and soap in bathrooms will give off a fresh scent. If you have pets, put them away and clean their areas. People who are allergic or afraid of pets may be turned off to the home because of the presence of pets.
Have as few distractions as possible during your for sale by owner open house. Arrange for your children to visit a neighbor or friend so you can give your full attention to showing the home. Do not turn on the television as this can also distract buyers from the showing.
Never apologize for anything in the home during the for sale by owner open house.
Before the start of the for sale by owner open house, you should gather a few essentials. Prepare a guest book in which buyers can write their contact information. You can use this guest book to keep notes of the buyers that show interest so you can contact them later on.
Blank sales contracts are necessary because someone might want to buy your home during the for sale by owner open house.
You can purchase real estate sales contracts from a major office supply store like Office Depot or Office Max.
Finally, prepare a flyer that buyers can take with them. Include a photo of the home, facts about the home, the listing price, and your contact information. If you have a web page advertising your home, be sure to include the web address.
Use these tips and you will sell your house in no time.
Did you know there are an estimated 8 million plots of unclaimed land and real estate in this country?
To download a free ebook that shows you how to claim your share,please visit: http://www.freelandproperty.com
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