Tectone Real Estate

U.S. Real Estate Foreclosures Increase Nationwide

salsabilahanun — Mon, 08 Mar 2010 21:57:25 +0000

Foreclosures continue to rise across America. According to the latest annual report of http://Foreclosures.com, the number of foreclosures filed nationwide in 2006 had increased by 51 percent from the previous year, with foreclosure filings nearly topping one million. When compared to 641,000 foreclosure filings made in 2005 nationwide, almost 971,000 foreclosure filings were reported last year.

Among the States, California reported the highest number of foreclosure filings in 2006 with 157,417 foreclosures filed, which is an increase by 94 percent from the year before. California is followed by Florida with 120,989 foreclosure filings. Nevada struggled with the largest percentage increase in foreclosures in 2006 of 175 percent.

The Northeast region reported 96,101 foreclosures in 2006, an increase of 64.6 percent from 58,394 foreclosures filed in 2005. Still, a few states in the region, such as Maryland and Delaware, saw a decrease in foreclosure filings.

Foreclosure filings in the Midwest region of the nation went up beyond 70 percent with many states including Illinois, Michigan, Missouri and Nebraska facing increases of 80 to 96 percent. Industrial layoffs and a tough economy have spurted the number of foreclosure filings in this region, with foreclosure figures in states such as Iowa and Kansas increasing beyond 100 percent.

The Southwest region was the most affected with one out of every 2.2 foreclosures in the country taking place there. The region closed the books for 2006 with an increase of 37 percent from 162,259 foreclosures in 2005 to 220,189 foreclosures. Foreclosure filings in Colorado increased by 55.4 percent, while foreclosures in Texas increased by 35.2 percent. Although the region struggled with the high foreclosure rates, the figures are not all bleak for the region with a few states showing a decrease in foreclosure filings. Louisiana, New Mexico, Oklahoma and Oregon reported fewer foreclosure filings in 2006 when compared to 2005. These states have particularly reported a drop in foreclosure filings in the last quarter of 2006.

Although the foreclosure reports are not very cheerful, Alexis McGee, president of http://Foreclosures.com anticipates the housing market to improve soon. Overextended homeowners, who have been struggling to keep up with heavy debt loads, rising interest rates and property taxes, can soon look forward to some relief as home inventories come down and the market start looking up again. McGee also adds that the current housing market may be the best opportunity for home buyers in the next six years.

Best U.S. Markets For Commercial Office Space Investments

salsabilahanun — Mon, 08 Mar 2010 05:13:38 +0000

Grubb & Ellis, a commercial real estate company, conducted a study into the country’s top 10 best office markets for real estate investors. Grubb & Ellis annually measures 52 office, industrial, retail and apartment markets against a number of set criteria that are vital to evaluate the performance of real estate investments.

In their annual study, the Chicago-based real estate company selected 10 U.S. office markets that are expected to perform particularly well over the next 5 years from 2007 through 2011. These office markets were ranked from 0 to 100 based on 16 property, economic, and demographic factors.

According to the Grubb & Ellis 2007 Real Estate Forecast, the following are the top 10 best office real estate markets in the country.

1. Washington, D.C. Metro – score of 70.8.

2. Los Angeles County (California) – score of 70.2.

3. Las Vegas (Nevada) – score of 69.6.

4. Dallas/Fort Worth (Texas) – score of 68.8.

5. Phoenix/Mesa/Scottsdale (Arizona) – score of 68.8 (actually tied for 4th).

6. Seattle/Tacoma/Bellevue (Washington State) – score of 68.7.

7. Orange County (California) – score of 66.5.

8. Orlando (Florida) – score of 64.7.

9. Houston (Texas) – score of 62.2.

10. Portland (Oregon) – score of 60.9.

According to the report, stable interest and capitalization rates will keep the real estate market strong through 2007, and real estate income will once again cover the appreciation component. The report predicts that the volume of investment transactions will stabilize in 2007, though at a high level. With real estate income expected to soar once again, the real estate market should be back on track as a solid income-generating investment.

Each of the regions noted above are stronger or weaker on different investment factors. If you are interested in investing in commercial real estate or need office space, be sure to seek out the services of a local commercial Realtor to guide you through this complex transaction. An experienced local commercial Realtor can advise you about both objective investment criteria, as well factors unique to a particular region based on your risk tolerance and investment objectives.

Strategies For Buying Real Estate In A Slow Market

salsabilahanun — Thu, 25 Feb 2010 18:33:58 +0000

The real estate market tends to be cyclical with some periods favoring buyers and other periods favoring sellers. As with other free markets, the pricing and availability of real estate is directly related to the forces of supply and demand. While many real estate markets in the United States are experiencing a substantial slowdown, other markets remain robust, and some even continue to grow. What makes the situation even more complicated is that even within a particular city or county, there may be some areas that are hot and others that are cold.

In regions of the country in which the real estate market is slowing, there are some things homebuyers can do to increase their chance of getting the property that they want on terms that are favorable. Below are some strategies to consider:

1. Clarify What You Want. Be sure to understand what kind of property you want (e.g. bedrooms, bathrooms, size, yard, location, etc.). Identify items that you “must have” and items that you would be willing to forego if your other priorities were met.

2. Consult Experts. You’ve no doubt heard the saying that “all real estate is local,” so arm yourself with the best information available. Consult a local real estate expert who can guide you about what communities are hot and which ones are not. Obviously, you are more likely to find deals in communities that have excess supply and limited demand than vice versa.

3. Understand Market Data. Obtaining and evaluating data can be one of the most powerful tools in your arsenal. Identify communities that you find desirable and ask your real estate agent to provide you relevant sales statistics. For example, your agent can provide you:

a. A summary of how many properties are available in communities that you deem desirable.

b. How long properties are taking to sell this month, last month, last quarter, last year, etc.

c. How many properties have sold this month, last month, last quarter, last year, etc.

d. Changes in the median and average price of properties for a community this month, last month, last quarter, last year, etc.

e. Data on the sales price to list price ratio (SP: LP). This ratio provides information about how much, on average, sellers are reducing their price.

f. Detailed data on properties that are similar to the type of property you desire (often known as “comparables” or “comps”).

4. High Inventory Communities. Identify, or ask your agent to identify, communities that appear to be particularly slow, and that have an unusually large inventory of homes. You will have a broader variety of options in these communities, and you may increase the likelihood of finding a better deal.

5. Loan Pre-Approval. Be sure to consult with your bank or mortgage broker and obtain a loan pre-approval document. This not only let’s you know how much you can afford, but it also demonstrates to sellers that you are a serious buyer and that your offer is worthy of serious consideration.

6. Seller’s Motivation. While information about why a seller is selling is usually confidential, there are situations in which the seller will allow their agent to disclose important factors regarding their personal situation. Be sure to ask your agent to inquire about any information that the seller has disclosed to his/her agent that can be conveyed to your agent. This information may help you decide on making an offer on a property and the price you wish to offer.

7. Home Inspection. A home inspection conducted by a qualified inspector can provide you valuable information about the condition of a property. Moreover, if there are items that need repair or replacement, you can use this information to modify your offer price or terms.

8. Expand Search Scope. As mentioned above, even within a particular city or county, there may be some areas that are hot and others that are not. Be sure to provided detailed information about what you want to your agent, so that he/she can provide you a variety of community options.

9. Be Patient. Time is on your side when there is excess supply and insufficient demand. Try not to “fall in love” with a house so much that you cannot be objective. It may be that multiple offers and counter-offers occur before you either get the property you want or decide to walk way from a deal. You may also want to look at more properties than you normally would, so that you are exposed to a variety of options.

While the above is not an exhaustive list of strategies, it is a good starting point of issues to consider when buying real estate, particularly in a market that favors buyers. Obtain the services of a knowledgeable Real Estate agent who can provide you with additional strategies to help you reach your real estate objectives.