Manhattan Real Estate Market Report – June Data

July 31, 2012 By 1 Comment

View of Manhattan. Information on the housing market in the borough.If you’re considering buying or selling a home in Manhattan, take a look at the following real estate market report. We’ve compiled local data from various sites and public records to give you an accurate look at Manhattan’s real estate activity. If you need  home financing assistance in the New York City metro, be sure to give AFR Mortgage a call (800-634-8616). We’re a New York mortgage lender offering competitive mortgage rates and great customer service.

Manhattan, NY Real Estate Report

Average Listing Price: $2,048,763
1-Week Change: -1.9%

Median Sales Price: $1,090,000
1-Year Change: +1.0%

Average Price/SqFt: $1,240
1-Year Change: -4.1%

Recently Sold: 1,972
Foreclosures: 351

Most Popular Neighborhoods: Upper East Side, Upper West Side, Harlem, West Village, Chelsea

There was a modest decline in Manhattan’s not-so-modest listing prices the week ending June 27, 2012. Sales prices appear to be holding fairly steady, with a small increase year-over-year. Of the five most popular neighborhoods, all experienced drops in average listing prices, except for Harlem, which saw no change since last year.
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Building Permits Pulled – Up Almost 34% Over 12 Month Period

July 30, 2012 By Leave a Comment

Interior framing during home construction. Report on building permits.As builder confidence slowly rises, more regions are experiencing increases in the number of issued building permits.

According to the U.S. Census, there were a total of 75,407 building permits issued in May 2012. Of those permits, the majority were authorized for 1 unit housing.

A year ago, the total number of permits was 56,272. The difference (19,135) represents an increase of a little more than 34 percent year-over-year.

Regionally, the South saw the highest number of permits (38,595) with Texas holding the rank of highest number of permits by state (11,942).

The Northeast region of the U.S. saw the lowest number of permits (7,274) with the state of Rhode Island holding the rank of lowest number of permits by state (62).

These figures could be an indication of a slowly but surely recovering market. As unemployment rates improve and homeowner assistance programs become more readily available, it’s not surprising that builders are eager to get back into the action. Although experts warn there is still a ways to go, these figures may that signal we’re headed in the right direction.
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5 Reasons to Considering Buying in a Master Planned Community

July 30, 2012 By Leave a Comment

These popular communities are popping up all over the country. With several benefits, it’s easy to see why these carefully designed neighborhoods are becoming so popular.

Couple with their child outside of their home in a master planned community.1. Sense of community.
People who live in master planned neighborhoods often say they enjoy the sense of community they get from the development. Neighbors typically get to know one another faster in a planned community, especially since so many of them host neighborhood activities and initiatives that promote community pride. Plus, many new planned communities have shared pools, exercise facilities, and meeting areas.

2. Sense of security
It’s not uncommon for master planned communities to have neighborhood watch committees or nighttime security officers. Some communities even offer alarm systems as a standard feature in all of their homes.

3. Sense of value
Home buyers are a lot more cautious that they used to be. With the market making strides toward improvement, many people are still feeling the effects of the 2007 housing crisis. Because of this, people want to feel like they are investing in something that will give them more for their money and have good resale value, when the time comes.
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What Is Your Home Really Worth?

July 29, 2012 By Leave a Comment

Father and son in front of their new home.The only real way to determine the current market value of your home is to have it appraised. Most homeowners overestimate their home’s worth by 5-10%, proving that it can be very difficult to be objective.

A home appraisal involves several aspects of real estate value. The appraiser will research your home (also known as the subject property) by looking at its age, gross living area (GLA), lot size, number of bedrooms and bathrooms, as well as additional features such as fireplaces, garages, etc. The appraiser will inspect the interior and exterior of your property, noting anything that could add to or subtract from the overall value.

Beyond the physical characteristics, a home’s value can be greatly affected by its surroundings. Recent sales in the immediate area are reviewed by the appraiser to find homes with similar features for comparison. These are known as ‘comparables’ or ‘comps’ for short. The appraiser will usually drive by the comparable properties and take note of things like exterior condition, view and location. Since they cannot go inside to inspect the comparables, they will look them up in the MLS database. Most MLS listings have photos of the interior and descriptions of the home’s physical characteristics. Finally, the home appraiser will note any differences in the comparables and adjust prices accordingly.
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Barclays Fined for Attempting to Rig LIBOR, an Index Affecting US Mortgage Rates

July 28, 2012 By Leave a Comment

Information on financials being reviewed in newspaper.The London Interbank Offered Rate, LIBOR, is the average interest rate that London’s major banks are charged when they borrow from other banks. LIBOR rates are calculated for ten different currencies, and not based on actual transactions but on the banks’ estimates. LIBOR’s activity is monitored not by a governmental agency, but instead by a British banker’s association.

It has worldwide significance because many financial institutions, mortgage lenders, and credit card companies use it as a guide for setting their own rates. When banks are subjected to borrowing at higher rates, they are viewed as vulnerable and customers tend to lose confidence in their stability. False reporting of rates creates the impression that banks are able to borrow from each other for less money than they actually can. This practice painted a false picture of the overall financial health of a number of large banks. In the case of Barclays Bank, suspicions were raised that traders were in direct contact with bankers prior to the rates being finalized.

A Time magazine article from July 23rd reported that, “Barclays admitted that it had deliberately underestimated those rates for years.” Again, this is significant because the falsification of the actual rates contributed to a misrepresentation of the solvency of many of the world’s largest financial markets.

The US CEO of Barclays, Bob Diamond, resigned on July 3rd, but many feel that this is just the tip of the iceberg. Because of the Barclays rigging scandal, around 20 of the largest banks in the world are either being sued or investigated. Although $350 trillion worth of contracts are part of the scheme, individual consumers could have surprisingly benefited from the misrepresentation of rates. That’s because LIBOR is also used as a gauge for a variety of loans, including variable mortgage rates, student loans, and even automobile financing. With numerous banks keeping LIBOR rates artificially low, scores of other loan rates also went down.
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3 US Cities with a European Look and Feel

July 27, 2012 By 1 Comment

Trying to figure out how you are going to afford that plane ticket to Paris, Barcelona, or London? The good news is that you may not have to. It is possible to enjoy a little European allure right here at home. Here are three US cities where you can truly experience a little taste of Europe.

Woman carrying shopping bags.Washington, DC – When you consider that our nation’s capital was designed by Frenchman, Pierre L’Enfant, it becomes easy to understand why DC sometimes feels like Paris. Unlike most major US cities, Washington, DC is almost devoid of skyscrapers. Wide boulevards and circles, complete with fountains and lush, green parks might make you think the Eiffel Tower is just blocks away! And, just as in Paris, the Potomac mesmerizes like the Seine. You also can easily walk most everywhere or reach your destination by metro. DC’s low storied buildings, classic facades and mansard rooflines also create the sense of a densely populated, yet well laid out Euro city. Neighborhoods set along narrow, tree-lined streets lined with brick row houses will have you looking for the corner bistro or boulangerie.

Boston, MA – Although Boston’s North End neighborhood has a sizeable Italian-American population, most of Bean Town feels decidedly English. As one of the nation’s oldest cities, Boston’s close ties to its early founding fathers is evident in a number of ways. Place names such as Dorchester, Hyde Park, and West End reflect the city’s British roots. It is also evident in Back Bay’s brownstones, Harvard’s gothic architecture and fine examples of Georgian and Federalist architecture. Parks, cafes, and shops line the side streets around Beacon Hill, Commonwealth Avenue and Newbury Street. Like DC, it is highly walkable and connected by a metro system. In the European tradition of true down time, the banks along the Charles River may also entice you to stay a while and enjoy a picnic or lazy afternoon nap.
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NAHB Builder Confidence Report – Signs of Improvement

July 26, 2012 By Leave a Comment

Couple reviewing blueprints with home builder.It’s a small step, but in the right direction. According to a recent press release from the National Association of Home Builders (NAHB), builder confidence for newly built, single-family homes gained 1 point in June from a slightly revised level in May – bringing it to a score of 29 on the NAHB/Wells Fargo Housing Market Index (HMI). This is the highest level attained since May, 2007.

The HMI, released on June 18, revealed a modest uptick after a four-point gain in May. While this small improvement sheds positive light on the future of U.S. housing, experts say there are still some hurdles to be cleared.

“While the June HMI is in keeping with our forecast for gradually improving single-family home sales this year, recent economic reports that have shown some weakening in the pace of recovery likely factored into the marginal gain,” said NAHB Chief Economist David Crowe. “In addition, builders across the country continue to report that overly tight lending conditions and inaccurate appraisals are major obstacles to completing sales at this time.”

For 25 years, the NAHB has been compiling data for the HMI from monthly surveys that gauge builder perceptions of current single-family home sales and sales expectations for the next six months. Builders rate these components as “good,” “fair” or “poor.” The survey also asks builders to rate the traffic of potential buyers as “high to very high,” “average” or “low to very low.” The scores from each component are then used to calculate a seasonally adjusted index where any number over 50 indicates good builder confidence.

In June, the HMI component measuring current sales conditions rose two points to 32, which is its highest level since April of 2007. Components measuring sales expectations in the next six months and traffic of potential buyers remained unchanged at 34 and 23, respectively. Today’s low mortgage rate environment has certainly helped keep first time keep buyers interested while opening doors for many real estate investors looking for rental opportunities.

According to the NAHB press release, the HMI showed mixed results when it came to regional numbers. Two areas of the country posted gains and two posted declines. The Midwest registered a five-point gain to 31 and the West registered a four-point gain to 33, while the Northeast and South each posted two-point declines, to 29 and 26, respectively.

To read the original press release, click here: http://www.nahb.com/news_details.aspx?newsID=15366

To view HMI tables online, visit www.nahb.org/hmi.

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Dealing With Smoke Damage in Your Home

July 24, 2012 By Leave a Comment

Lakefront property. Dealing with smoke damage in home.In the wake of busy schedules, sleep deprivation, or just good old preoccupation, it happens to the best of us. Small house fires caused by an unattended pot, iron, fireplace or wood stove can wreak havoc in our homes. Faulty wiring and chemical cocktails caused by the improper storage of cleaning supplies are other culprits. Even though these types of fires may do no actual structural damage, the problems they cause can be tough to tackle. Here are a few suggestions to make surface cleanup easier.

- Before you begin, open all doors and windows to thoroughly ventilate the area. Fans can also help circulate fresh air. Next, make sure there is no structural damage. If just the surface areas were affected, you might need to just gently wipe them down with a damp cloth.

- For draperies, carpets, and upholstery, gently vacuum the affected areas with a brush attachment. Do not try to scrub away soot-that could make matters worse. Instead, you may want to use a heavy-duty upholstery cleaner that goes on as a foam. Vacuum again after it dries.

- To remove the black soot and its residue from ceilings, walls, cabinetry and countertops, TSP or Tri Sodium Phosphate may be effective. It can be purchased at most hardware stores.

- When working with TSP, you’ll need to wear safety goggles and rubber gloves to avoid eye and skin irritation.

- Apply the proper amount of TSP and warm water. Use a sponge to scrub down the affected surfaces.

- After you’ve gone over the sooty surfaces with TSP, next rinse with a clean, damp cloth.

- You may not want to leave the surfaces damp to help prevent the growth of mold and mildew.

- If the accident resulted in peeling paint, chipped sheetrock, or ruffled wallpaper, take the necessary steps to repair it.

- As an extra safety precaution, you should consider having your home’s air ducts inspected and professionally cleaned to avoid the circulation of residual toxins.

Be sure to consult with a company familiar with smoke remediation before tackling these projects. American Financial Resources does not offer these services.

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What Does A Mortgage Underwriter Do?

July 24, 2012 By Leave a Comment

Underwriter reviewing mortgage documentation online.Mortgage underwriting in the United States refers to the process by which a lending company determines whether the risk involved with lending money to an individual is acceptable. In other words, a mortgage underwriter analyzes the risk factor in offering a loan to a borrower and ultimately decides whether to approve or deny the loan request.

When determining whether or not a loan is an acceptable risk, underwriters generally, consider the three C’s of underwriting: credit, capacity and collateral.

Credit reports allow the underwriter to examine a borrower’s credit management. (This is why you have to complete a background and credit check prior to getting pre-approved for a mortgage.)

Capacity refers to the borrower’s ability to pay for the loan. To make sure the borrower is capable of making regular monthly payments, the underwriter will analyze his or her income, employment history, current debt and assets. Assets generally refer to the money in the borrower’s checking or savings accounts, retirement funds, or investments. Funds that carry penalties for early withdrawal, however, are considered on a much more conservative basis and are typically evaluated less than their actual value.

Collateral refers to the type and value of the property that the loan is representing. Single family residence, duplex, townhome, condominium are a few common property types. Each type carries a different amount of risk for lenders. For instance, in the event that the bank has to seize the property, a single family residence would be easier to resell than a duplex.

Occupancy is also factored in when it comes to collateral. Owner-occupied homes have the least amount of default, and therefore carry less risk. Second homes or investment properties have a higher rate of missed or late payments, so an underwriter may consider these to be more risky.

Modernly, many lending companies utilize automated underwriting, which streamlines the process and reduces the amount of documentation needed from the borrower. However, a mortgage underwriter still needs to evaluate the results of the automated data and will ultimately decide to approve or deny the loan.

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Home Painting Trends 2012 – Colors Reflect Economic Mood?

July 23, 2012 By Leave a Comment

Couple reviewing paint colors with interior designer.The choices you make for your home’s paint colors and the techniques you use play an integral part in its appeal. Especially those interested in selling their property should choose both exterior and interior paints and stains carefully. Although paint colors are easy to change, more than one prospective buyer has walked away from a great house, just because they couldn’t see beyond the chartreuse walls. Whether a purchase or sale is in your future, here are a few painting trends to consider for 2012.

Just as many speculate that hemlines are reliable predictors of economic conditions, it appears that paint colors are as well. In fact, runway fashions and home decorating trends often go hand in hand. The “hemline theory” which has been around since the 1920’s, claims that shorter skirts indicate economic prosperity and longer ones signal slumps.

As for paint colors, in positive times, bright, bold palettes show our confidence. When the economic climate is shaky, we gravitate towards more tranquil tones. So then, it comes as no surprise that this year’s most popular home paint colors are in soothing, muted shades. Benjamin Moore’s senior interior designer, Sonu Mathews says that Wythe Blue has been a top pick this year. Reflects Mathew, “It is a blue green hue with a cool gray cast to it and creates a comfortable and stable ambiance-an antidote to the frenetic pace of daily life.” Along with peaceful blues and smoky grays, neutrals and earth tones have been other prevalent picks.
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