Investors See Bigger Profits from Rising Rents

NEW YORK – Oct. 27, 2011 – Rental demand and prices continue to soar, and investors are cashing in. Rents are rising at a 5.17 percent annual rate – up from last year’s 4.72 percent rate. If rents continue to grow at their current pace, they won’t be too far behind the record-high reached in 2000 of 6.18 percent, according to Axiometrics Inc.

The rental market has added about 1.4 million new renters this year, some of whom were former homeowners who faced foreclosure or a short sale. Renters are increasingly showing an appetite for single-family homes owned by investors.

As such, the number of investors in the market is growing. Investors make up anywhere between 20 and 40 percent of monthly existing home sales, according to home-sale data. With home prices and interest rates low, more aspiring investors are jumping in. Nearly 60 percent of investors in a recent survey by Realtor.com considered themselves newcomers to real estate investing.

“This is a long-term investment,” says Greg Rand, CEO of OwnAmerica. “Rents are a steady return on your investment through the years, leaving you with an attractive asset when prices improve. And they will. The best profits in real estate accrue to long-term investors who take a long-term view.”

Source: “Rising Rents Improve Investors’ Return,” RISMedia (Oct. 20, 2011)

The Coast - A Collaboration At BIG ARTS Features Evening of Photography, Music and Poetry.

by Gordon Campbell

The Coast – A Collaboration, an evening of photography, music and poetry featuring Charles Sobczak, a Sanibel writer, and his son, Logan Sobczak, a composer, will take place at BIG ARTS Phillips Gallery Thursday, November 10 at 7:30 p.m. There is a suggested $5 donation at the door.

The evening includes a presentation of some of the best nature photography ever taken. Charles will present spoken prose followed by a composition inspired by that work, and, conversely, Logan will play a piece and Charles will read a poem based on the music. A question-and-answer session with wine and cheese will follow.

          Charles Sobczak is a well-known writer whose works include Six Mornings on Sanibel, Way Under Contract, Living Sanibel – A Nature Guide to Sanibel & Captiva Islands, and, most recently, A Nature Guide to Southwest Florida, which has been chosen as a finalist for the President’s Book Award by the Florida Publisher’s Association.

          Logan Sobczak is a recent graduate of University of Florida. He holds double majors in philosophy and political science and plans to continue his education at the Chicago Art Institue in 2012. He has played piano since he was 12 and started writing original compositions shortly thereafter.

Source: Island Sun (11/04/11)

Renters Spent 5% More Than Homeowners

NEW YORK – Oct. 27, 2011 – Rising rents are forcing renters to outspend homeowners on housing costs, according to a new study.

Since 2005, homeowners’ housing expenses have climbed from 31.9 percent of their household budget to 33.2 percent. In that same time period, renters’ expenses have jumped from 35.6 percent to 38.4 percent, according to the October CoreLogic U.S. Housing and Mortgage Trends.

In the last 26 years, homeowners have increased the amount they spend on household expenses by 12 percent while renters have increased it by 22 percent, according to the study.

Growth picture enjoys uptick

WASHINGTON – Oct. 25, 2011 – Economists have significantly raised their estimates of third-quarter economic growth ahead of the government’s official report Thursday, easing near-term fears of another recession.

A consensus of economists surveyed by Bloomberg News estimates the economy grew at a still-modest 2.5 percent annual pace last quarter, up from their 1.8 percent projection less than two weeks ago. The brighter picture follows better-than-expected data on retail sales, manufacturing, jobs and business investment.

“We should take some comfort that the economy isn’t hurtling into recession,” says Capital Economics’ Paul Ashworth. Ashworth estimates third-quarter growth was 3.2 percent.

That’s not robust, but it beats the anemic expansion of less than 1 percent the first half of 2011. Amid last summer’s debt battle in Congress, the downgrade of the U.S. credit rating and financial turmoil in Europe, many analysts thought the U.S. was on the verge of another downturn.

Since Oct. 3, 10-year Treasury yields have risen nearly half a percentage point, indicating growth prospects are prompting a shift of money to higher-risk assets, says market strategist Anthony Valeri of LPL Financial.

Source: Inman News (10/18/11)

Homeownership rate second highest on record

WASHINGTON – Oct. 25, 2011 – The homeownership rate is at its second-highest level on record, only behind the record high set in 2000, according to the U.S. Census Bureau, which began collecting homeownership data in 1890.

By region, the homeownership rate is:

• Midwest: 69.2 percent
• South: 66.7
• Northeast: 62.2
• West: 60.5

Nearly every metro area had more homeowners than renters in 2010. The metro areas with the highest homeownership rates were in Michigan and Florida. Monroe, Mich., had the highest percentage of owner-occupied units at 79.8 percent, followed by Punta Gorda, Fla., at 79.7 percent.

Source: Inman News (10/18/11)

Florida’s existing home and condo sales up in September

ORLANDO, Fla. – Oct. 20, 2011 – Florida’s existing home and existing condo sales continued their upswing in September, according to the latest housing data released by Florida Realtors®. Existing home sales increased 10 percent last month with a total of 15,036 homes sold statewide compared to 13,723 homes sold in September 2010, according to Florida Realtors.

“One of the most overlooked statistical trends in all of real estate is the growth in home sales, both single-family and condo, in the state of Florida,” said Florida Realtors Chief Economist Dr. John Tuccillo. “We’ve seen an upward trend in sales since January 2011, and September’s sales were a full 10 percent above September 2010. Even prices, which have been static over the past few months, are well above where they were in January 2011.

Source: Inman News (10/18/11)

Best day to list real estate for sale: Friday

SEATTLE – Oct. 20, 2011 – After analyzing 1.2 million listings in 16 markets across the country for 21 months, Redfin found that sellers have a better chance of moving their homes off the market if they list them on a Friday.

The brokerage says the study indicates that Friday listings are 12 percent more likely to change hands within 90 days. Additionally, 94.4 percent of properties listed on a Thursday or Friday sold close to the list price; in contrast, only 93.3 percent of those listed on a Sunday or Monday sold close to the list price.

Friday listings were 18.8 percent more likely than Sunday or Monday listings to be toured, with Redfin noting that “homes listed on Fridays are the freshest in buyers’ minds when they’re making their weekend plans.” Buyers also prefer to visit the newest listings first to beat the competition.

The study’s conclusion: “More tours leads to more offers, and more offers leads to a better price and a better chance of selling.”

Source: Inman News (10/18/11)