Falling oil prices should be good for real estate markets
This Economist article Why the oil price is falling explains the background to falling oil prices which should, in general, be good for the US economy next year and by extension good for the real estate market which, having largely recovered from the Great Recession, is now more dependent upon economic growth for continued gains.
The table below shows forecasts from IHS Global Insight for the US economy in 2015 at different average oil prices: (more…)
Housing market in “early stages of recovery”
Two public house-building companies released strongly optimistic comments about the future of the housing market this week. (more…)
US energy boom may be long-term positive for real estate
Growing US competitive advantage
This Financial Times article Cheap energy is the new cheap labour highlights the growing competitive advantage of the US over Europe as a result of the shale boom (the US is forecast to become the world’s largest oil producer in 2015.)
Oil price slump hurts country budgets
OPEC decided this week not to cut production as a way of trying to halt the slump in oil prices, down some 30% in recent months to about $70 per barrel. (more…)
Detroit property rebounding: the Chinese are coming……
A recent NBC report Chinese investors snap up property in bankrupt Detroit cited Chinese online property site juwai.com as saying that Detroit was the number 4 destination in the US for Chinese housing investors.
That makes me wonder if my posts about Detroit property over the last year Detroit housing market continues to improve and Is Detroit real estate a bargain? have been read in the People’s Republic. Probably not. (more…)
Flood Insurance: “Because without it your home is a disaster waiting to happen”
It seems appropriate on this morning of another nor’easter to echo the reminder recently sent out by FEMA.
– Flood damage is not covered by most homeowners insurance.
– Flooding is the #1 natural disaster.
– People outside high-risk areas file over 20% of NFIP claims and receive one-third of disaster assistance for flooding
– In high-risk areas homes have at least a 1 in 4 chance of flooding over a 30 year mortgage
– Flood insurance is mandatory if you live in a high-risk area and have a mortgage from a federally regulated or insured lender.
For more information go to FloodSmart.gov (more…)
Where are America’s most expensive zipcodes?
Read thisForbes article to find out.
If you – or somebody you know – are considering buying or selling a home and have questions about the market and/or current home prices, feel free to contact me on 617.834.8205 or [email protected].
Andrew Oliver is a Realtor with Harborside Sotheby’s International Realty
Sotheby’s International Realty® is a registered trademark licensed to Sotheby’s International Realty
Affiliates LLC. Each Office Is Independently Owned and Operated
The Chinese are coming, the Chinese are coming
According to Bloomberg Business Week the LA suburb of Arcadia is enjoying a boom in home prices fuelled by Chinese buying.
“For buyers from mainland China, Arcadia offers excellent schools, large lots with lenient building codes, and a place to park their money beyond the reach of the Chinese government.The city, population 57,600, projects that about 150 older homes—53 percent more than normal—will be torn down this year and replaced with mansions. The deals happen fast and are rarely listed publicly.”
Ah here are a couple of obvious problems for Marblehead. I don’t think we can offer lenient building codes, while I am not sure a 6,000 sf lot in Old Town would meet the bill. Oh well, we can but dream that the Chinese will discover Marblehead one day.
Read the article Chinese home buying binge.
If you – or somebody you know – are considering buying or selling a home and have questions about the market and/or current home prices, feel free to contact me on 617.834.8205 or [email protected].
Andrew Oliver is a Realtor with Harborside Sotheby’s International Realty.
Sotheby’s International Realty® is a registered trademark licensed to Sotheby’s International Realty Affiliates LLC. Each Office Is Independently Owned and Operated
Good news for 946,000 home owners
Another sign of the improving housing market came this week, as reported in this MarketWatch article 900,000 homes regain equity, about a report from CoreLogic that in the second quarter of 2014 some 946,000 home owners moved out of a negative equity position, meaning their houses were now worth more than their mortgage. (more…)
Flood Insurance and Class Action Lawsuits: who benefits?
After spending some time last year negotiating flood insurance premiums with my insurance company my eye was attracted to this article:Bank of America settles Flood Insurance Lawsuit
Two things struck me about this article. First, of course, that BofA should have been forcing people to maintain excessive amounts of coverage. That probably comes as little surprise to most people, me included.
The second thing is the economics of the settlement. Out of the total award of $31 million, the settlement administrator gets $660,000, while the 359,320 members of the class action share $21.82 million. Sounds like a lot of money, but that is just 60 dollars and 73 cents per member. And for negotiating this magnificent settlement how much do the lawyers get? Want to guess? The answer is $7.7 million – yep, $7,700,000. And those on behalf of whom they have worked so diligently get $60.73 each.
Tort reform anybody?
If you – or somebody you know – are considering buying or selling a home and have questions about the market and/or current home prices, feel free to contact me on 617.834.8205 or [email protected].
Andrew Oliver is a Realtor with Harborside Sotheby’s International Realty
Sotheby’s International Realty® is a registered trademark licensed to Sotheby’s International Realty Affiliates LLC. Each Office Is Independently Owned and Operated
Detroit Housing Market continues to improve
In August 2013 I wrote Is Detroit real estate a bargain?
This article Detroit prices up 15% in August suggests the answer is Yes.
At an event called Detroit Homecoming this week, Warren Buffett commented that Detroit will be better, stronger after bankruptcy, while Michael Bloomberg stated that Detroit Is Just Like 1970s New York, And That’s A Good Thing.
Not long ago Detroit was not only written off as a disaster area but also held up as the example of what would likely happen to other former industrial cities. Signs of recovery are, therefore, particularly encouraging.
If you – or somebody you know – are considering buying or selling a home and have questions about the market and/or current home prices, feel free to contact me on 617.834.8205 or [email protected].
Andrew Oliver is a Realtor with Harborside Sotheby’s International Realty
Sotheby’s International Realty® is a registered trademark licensed to Sotheby’s International Realty Affiliates LLC. Each Office Is Independently Owned and Operated
Mortgage Rates: what happened to 5%?
As we head into the Fall selling season it is worth pausing to reflect on where mortgage rates stand and what the outlook is. Well the second is easy: we don’t know with any confidence. What we do know is that forecasts of rates hitting 5% or more this year have proved pessimistic despite the improving US economy. (more…)
American wealth hits all-time record as housing rebounds
According to figures released this week by the Federal Reserve, the net worth of American households and non-profit organizations increased by $1.5 trillion to a new record $81.8 trillion in the first quarter of 2014.
The good news is that roughly half the increase came from higher residential real estate values, while homeowners’ equity in their real estate increased 2% to 53.6% in the quarter.
Another positive sign is that household borrowing rose at a 2% annualized rate, indicating that we are becoming more comfortable about borrowing again, while that debt represents only 108% of disposable income,compared with 135% in 2007.
Overall these numbers, together with improving Consumer Confidence, suggest that the real estate recovery has a solid basis.
If you – or somebody you know – are considering buying or selling a home and have questions about the market and/or current home prices, feel free to contact me on 617.834.8205 or [email protected].
Andrew Oliver is a Realtor with Harborside Sotheby’s International Realty
Sotheby’s International Realty® is a registered trademark licensed to Sotheby’s International Realty
Affiliates LLC. Each Office Is Independently Owned and Operated
http://online.wsj.com/articles/americans-wealth-hits-new-record-in-1st-quarter-1401985427?mod=trending_now_2
Mortgage rules eased to help housing market, but don’t tell Congress
I have written Fannie Mae and Freddie Mac that the best solution for the housing market would be to make sure that Fannie Mae (FNM) and Freddie Mac(FRE) returned to their core mission of providing liquidity to the housing market. They got away from that mission during the boom and Congress, in typical knee jerk fashion, decided to shut them down – with no plan to replace them, other than a vague hope that the “private sector” would step in.
Well, that hasn’t happened, and this week Mel Watt, the recently appointed head of the Federal Housing Finance Agency (FHFA), which oversees FNM/FRE, reversed course on some of the new mortgage rules amid concern that they would hinder the housing market recovery. Mr. Watt went further and said:” I don’t think it is FHFA’s role to contract the footprint of Fannie and Freddie.” Winding down the companies without clear proof that private investors are willing to step in “would be irresponsible.” (more…)
Luxury Home Sales Soar
The National Association of Realtors (NAR) published a report this week stating that Luxury Home Sales Soar Above Historical Average.
In a number of posts over the last year I have suggested that with the stock market at an all time high it made sense for wealthy investors to turn their attention to real estate. And that now seems to be happening. (more…)
Oceanfront homes package in Marblehead and Cayman Islands
If you need to be based in New England but want to be able to escape the worst of the winters, this package of an oceanfront house (plus carriage house, ideal for guests or as a weekend retreat) in Marblehead and a beachfront, ground floor condo (including turnkey, professionally managed rental program) at Rum Point in Grand Cayman, could be just the thing for you.
Click Marblehead Estate for details of the Marblehead property and Paradise on the Beach for the Cayman condo.
For information about buying both properties contact Andrew Oliver, 617.834.8205 or [email protected]
Recent Comments