link to article
Buyers who have a foreclosure or bankruptcy in their credit past wouldn’t be a likely candidate to secure financing from a bank anytime soon for a home purchase. As a result, some sellers are stepping in to offer seller financing to get a home sold.
Seller financing, once popular in the 1980s when mortgage rates spiked to 18 percent, is making a comeback in areas flooded by foreclosures and where tight lending standards are keeping some buyers on the sidelines, reports Bloomberg News.
“The market is locked up because there’s no financing,” says Gordon Albrecht, executive vice president of FCI Lender Services Inc. “This is moving houses.”
Last year, 52,991 U.S. homes were purchased with various forms of seller financing--a 56 percent jump from 2008, according to the REALTORS® Property Resource LLC. In 2010, such deals made up 1.5 percent of all transactions.
One popular form of seller financing is known as a land contract, which is when a buyer takes possession of the home but the seller holds the title until the debt is completely paid off. The loan’s terms--such as down payments and interest rates--are negotiable. These arrangements usually consist of a balloon payment in five to 10 years, which is when buyers will have to repay the seller or lose the home, along with any money they already put into it.
Source: “Home Sellers Become Lenders to Poor-Credit Buyers,” Bloomberg (May 11, 2011)
Thursday, May 19, 2011
Friday, May 6, 2011
In Time for Buying Season, Rates Reach Yearly Lows
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Daily Real Estate News
May 6, 2011
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In Time for Buying Season, Rates Reach Yearly Lows
The 30-year fixed-rate mortgage, a popular choice among buyers, sank even lower this week, matching its yearly low of 4.71 percent from January, reports Freddie Mac in its weekly mortgage market survey. Last year at this time, the 30-year fixed-rate mortgage averaged 5 percent.
Meanwhile, the 15-year fixed-rate hit a new yearly low of 3.89 percent this week. Last week, the 15-year fixed-rate mortgage averaged 3.97 percent. The 15-year rate averaged 4.36 percent last year at this time. It reached its lowest level on record in November when it averaged 3.57 percent.
The one-year adjustable-rate mortgage averaged 3.14 percent, down from last week’s 3.15 percent. Last year at this time, it averaged 4.07 percent.
"Weaker economic data reports reduced Treasury bond yields and allowed mortgage rates to drift lower for the third consecutive week,” says Frank Nothaft, Freddie Mac’s chief economist.
Source: “30-Year Fixed-Rate Mortgage Matches Yearly Low of 4.71 Percent,” Freddie Mac (May 5, 2011)
Daily Real Estate News
May 6, 2011
Share
In Time for Buying Season, Rates Reach Yearly Lows
The 30-year fixed-rate mortgage, a popular choice among buyers, sank even lower this week, matching its yearly low of 4.71 percent from January, reports Freddie Mac in its weekly mortgage market survey. Last year at this time, the 30-year fixed-rate mortgage averaged 5 percent.
Meanwhile, the 15-year fixed-rate hit a new yearly low of 3.89 percent this week. Last week, the 15-year fixed-rate mortgage averaged 3.97 percent. The 15-year rate averaged 4.36 percent last year at this time. It reached its lowest level on record in November when it averaged 3.57 percent.
The one-year adjustable-rate mortgage averaged 3.14 percent, down from last week’s 3.15 percent. Last year at this time, it averaged 4.07 percent.
"Weaker economic data reports reduced Treasury bond yields and allowed mortgage rates to drift lower for the third consecutive week,” says Frank Nothaft, Freddie Mac’s chief economist.
Source: “30-Year Fixed-Rate Mortgage Matches Yearly Low of 4.71 Percent,” Freddie Mac (May 5, 2011)
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Sunday, May 1, 2011
Columbia Ranked Among Top 10 Small Cities of the Future
Columbia was named third among the Top 10 small cities of the future by fDi Magazine. The capital city was also ranked tenth for its quality of life.
The “American Cities of the Future 2011-12” uses a mix of data and opinion to rank cities which have the best prospects for inward investment, economic development and business expansion, according to a news release from the magazine, a specialist division from the Financial Times.
http://www.cbc.ca/news/pdf/american-cities-of-the-future.pdf
The “American Cities of the Future 2011-12” uses a mix of data and opinion to rank cities which have the best prospects for inward investment, economic development and business expansion, according to a news release from the magazine, a specialist division from the Financial Times.
http://www.cbc.ca/news/pdf/american-cities-of-the-future.pdf
Monday, April 18, 2011
SC Single-Family Median Sales Price Increases 1.1 Percent to $156,661
http://screnews.blogspot.com/2011/04/sc-single-family-median-sales-price.html
Friday, April 15, 2011
South Carolina REALTORS® (SCR) today released its March 2011 Market Reports. On the housing supply front, the largest gain occurred in the $100,000 and Below rage, with an increase of 8.8 percent to 12,420 units; while Pending Sales in the state were down 7.4 percent from the same period one year prior.
The segment with the largest increase in the market was the $100,001 to $150,000 range. The $100,000 and Below segment tended to sell the quickest at 125 days, while the slowest was the $300,001 and Above range at 186 days. Prices were up 0.3 percent across the board. Single-Family properties saw the largest price gain, where the Median Sales Price increased 1.1 percent to $156,661. Meanwhile, Condo inventory levels have decreased 14.6 percent, and Single-Family inventory levels have decreased 3.6 percent
Friday, April 15, 2011
South Carolina REALTORS® (SCR) today released its March 2011 Market Reports. On the housing supply front, the largest gain occurred in the $100,000 and Below rage, with an increase of 8.8 percent to 12,420 units; while Pending Sales in the state were down 7.4 percent from the same period one year prior.
The segment with the largest increase in the market was the $100,001 to $150,000 range. The $100,000 and Below segment tended to sell the quickest at 125 days, while the slowest was the $300,001 and Above range at 186 days. Prices were up 0.3 percent across the board. Single-Family properties saw the largest price gain, where the Median Sales Price increased 1.1 percent to $156,661. Meanwhile, Condo inventory levels have decreased 14.6 percent, and Single-Family inventory levels have decreased 3.6 percent
Thursday, April 14, 2011
Apartment Vacancies Decline, Rents Expected to Rise
By DAWN WOTAPKA
Vacancy in apartment buildings fell to the lowest rate in more than two years in the first quarter, setting the stage for fewer choices and higher rent for tenants.
With the economy adding jobs, and with more people choosing to rent instead of buy homes, the nation's vacancy rate came in at 6.2%, down from 6.6% in the fourth quarter and 8% in the first quarter a year ago, according to data released Wednesday by Reis Inc.
This increasing demand has allowed many landlords to scale back on freebies and increase rent. The average effective rent, or the amount paid after discounting, rose to $991 in the first quarter from 2.5% a year earlier, according to Reis, which collected data from 82 major markets.
."You don't often see occupancy and rents increasing at the same time," says Rich Anderson, a REIT analyst covering the multifamily sector for BMO Capital Markets. "It's a great fundamental picture today."
Thanks to the bullish outlook, apartment buildings are being bid up close to boom levels in some of the hottest markets. Last month, UDR Inc., a Denver-based REIT, said it would pay $260.8 million for its first Manhattan building.
Also, many of the nation's apartment owners have ramped up construction. Home Properties Inc. said Tuesday it started a 314-unit community in Fredericksburg, Va., that should be finished by 2012.
It also aims to break ground on a Maryland development later this year.
"Now is the time to start development," said David Gardner, Home's chief financial officer. "We're expecting to see some great returns."
The CoStar Group expects about 22,500 units to be added this year, followed by 94,600 in 2012 and more than 109,000 in 2013. Of course, that might put downward pressure on rents and occupancy levels.
"Supply will come in and rain on the parade as it always does," Mr. Anderson says. "It's just a matter of when it will happen."
The market improvement also could stall or reverse if employers don't keep adding jobs. But, for now, few industry watchers are worried.
"Expect vacancies to continue declining, and rents rising through the rest of 2011 at an even faster pace," Reis wrote in the report.
Rental activity during the winter season is typically slow because consumers prefer to avoid apartment hunting and moving in chilly weather.
But landlords filled 44,000 more units than were vacant in the first quarter, the strongest first quarter in a decade.
Vacancy in apartment buildings fell to the lowest rate in more than two years in the first quarter, setting the stage for fewer choices and higher rent for tenants.
With the economy adding jobs, and with more people choosing to rent instead of buy homes, the nation's vacancy rate came in at 6.2%, down from 6.6% in the fourth quarter and 8% in the first quarter a year ago, according to data released Wednesday by Reis Inc.
This increasing demand has allowed many landlords to scale back on freebies and increase rent. The average effective rent, or the amount paid after discounting, rose to $991 in the first quarter from 2.5% a year earlier, according to Reis, which collected data from 82 major markets.
."You don't often see occupancy and rents increasing at the same time," says Rich Anderson, a REIT analyst covering the multifamily sector for BMO Capital Markets. "It's a great fundamental picture today."
Thanks to the bullish outlook, apartment buildings are being bid up close to boom levels in some of the hottest markets. Last month, UDR Inc., a Denver-based REIT, said it would pay $260.8 million for its first Manhattan building.
Also, many of the nation's apartment owners have ramped up construction. Home Properties Inc. said Tuesday it started a 314-unit community in Fredericksburg, Va., that should be finished by 2012.
It also aims to break ground on a Maryland development later this year.
"Now is the time to start development," said David Gardner, Home's chief financial officer. "We're expecting to see some great returns."
The CoStar Group expects about 22,500 units to be added this year, followed by 94,600 in 2012 and more than 109,000 in 2013. Of course, that might put downward pressure on rents and occupancy levels.
"Supply will come in and rain on the parade as it always does," Mr. Anderson says. "It's just a matter of when it will happen."
The market improvement also could stall or reverse if employers don't keep adding jobs. But, for now, few industry watchers are worried.
"Expect vacancies to continue declining, and rents rising through the rest of 2011 at an even faster pace," Reis wrote in the report.
Rental activity during the winter season is typically slow because consumers prefer to avoid apartment hunting and moving in chilly weather.
But landlords filled 44,000 more units than were vacant in the first quarter, the strongest first quarter in a decade.
Sunday, April 10, 2011
Top Ten Facts about Lake Murray SC
http://www.midlandsbiz.com/news/markettrends/1287/ 10- Each of the Lake Murray towers is 223 feet tall. 9- The 4th of July fireworks on Lake Murray can be seen from 4 counties (Richland, Lexington, Newberry and Saluda Counties). 8- Lake Murray was named after William S. Murray, who was an engineer involved in the design and creation of the dam. 7- The biggest fish ever captured on Lake Murray was a 298 pound sturgeon by four young men on April 28, 1936. It was nine feet tall. 6- In October 2011, the American Fishing Tour/Angler of the Year (AOY) Tournament will be held on Lake Murray and will generate 7,000 + room nights for the region. 5- In 2009, The Forrest Wood Cup event produced 113,670,570 (billion) media impressions and a $46,556,207 economic impact on the region. 4- The 4th of July Celebration on Lake Murray is now in its 23rd year of existence and over 125,000 people view the fireworks each summer. 3- Lake Murray is the #1 home to the Purple Martin Phenomenon. It is on Lunch (Bomb) Island on Lake Murray and is the largest, natural, roosting sanctuary in North America. 2- There are over 390 rooms on Lake Murray available for vacation rental. 1-150+ million people visit Lake Murray each year.
Wednesday, March 30, 2011
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