WASHINGTON - The slowdown in the once-sizzling housing market is spreading, with 28 states and the District of Columbia reporting spring sales declines, led by big drops in former boom areas of Arizona, Florida and California
Nationally, sales were down 7 percent in the April-June quarter this year compared with the same period in 2005, the National Association of Realtors said Tuesday in its latest state-by-state look at housing conditions around the country.
The Realtors survey showed that the biggest declines occurred in states that had been enjoying red-hot sales during the five-year housing boom.
The five biggest declines this spring compared to the April-June period of 2005 were Arizona, down 26.9 percent; Florida, down 26.7 percent; California, down 25.3 percent; Virginia, down 23.9 percent, and Nevada, down 23.5 percent.
The Realtors report depicted a tale of two housing markets, with former boom areas experiencing declines and other areas of moderate sales gains during the boom years experiencing strong growth.
In all, 20 states had sales gains in the spring, led by Alaska, which enjoyed a 48.6 percent jump in sales; followed by Arkansas, up 17.9 percent; Texas, up 11.3 percent; North Carolina, up 11 percent, and Vermont, up 9.1 percent compared to the spring of 2005.
"States with moderately priced areas that have experienced healthy job creation are seeing sales gains," said David Lereah, chief economist for the Realtors. "The economic backdrop remains favorable for the housing market, which is helping home sales level out."
In a separate survey of price changes in 151 metropolitan areas, the Realtors reported that 26 metro areas experienced outright price declines while 37 areas were still enjoying double-digit price increases.
The biggest price drops in percentage terms were in Danville, Ill., where home prices fell by 11.2 percent in the spring compared with the spring of 2005, and the Detroit area, where home prices were down 8 percent.
Tuesday, August 15, 2006
Home sales slow, 28 states see declines
WASHINGTON - The slowdown in the once-sizzling housing market is spreading, with 28 states and the District of Columbia reporting spring sales declines, led by big drops in former boom areas of Arizona, Florida and California
Nationally, sales were down 7 percent in the April-June quarter this year compared with the same period in 2005, the National Association of Realtors said Tuesday in its latest state-by-state look at housing conditions around the country.
The Realtors survey showed that the biggest declines occurred in states that had been enjoying red-hot sales during the five-year housing boom.
The five biggest declines this spring compared to the April-June period of 2005 were Arizona, down 26.9 percent; Florida, down 26.7 percent; California, down 25.3 percent; Virginia, down 23.9 percent, and Nevada, down 23.5 percent.
The Realtors report depicted a tale of two housing markets, with former boom areas experiencing declines and other areas of moderate sales gains during the boom years experiencing strong growth.
In all, 20 states had sales gains in the spring, led by Alaska, which enjoyed a 48.6 percent jump in sales; followed by Arkansas, up 17.9 percent; Texas, up 11.3 percent; North Carolina, up 11 percent, and Vermont, up 9.1 percent compared to the spring of 2005.
"States with moderately priced areas that have experienced healthy job creation are seeing sales gains," said David Lereah, chief economist for the Realtors. "The economic backdrop remains favorable for the housing market, which is helping home sales level out."
In a separate survey of price changes in 151 metropolitan areas, the Realtors reported that 26 metro areas experienced outright price declines while 37 areas were still enjoying double-digit price increases.
The biggest price drops in percentage terms were in Danville, Ill., where home prices fell by 11.2 percent in the spring compared with the spring of 2005, and the Detroit area, where home prices were down 8 percent.
Nationally, sales were down 7 percent in the April-June quarter this year compared with the same period in 2005, the National Association of Realtors said Tuesday in its latest state-by-state look at housing conditions around the country.
The Realtors survey showed that the biggest declines occurred in states that had been enjoying red-hot sales during the five-year housing boom.
The five biggest declines this spring compared to the April-June period of 2005 were Arizona, down 26.9 percent; Florida, down 26.7 percent; California, down 25.3 percent; Virginia, down 23.9 percent, and Nevada, down 23.5 percent.
The Realtors report depicted a tale of two housing markets, with former boom areas experiencing declines and other areas of moderate sales gains during the boom years experiencing strong growth.
In all, 20 states had sales gains in the spring, led by Alaska, which enjoyed a 48.6 percent jump in sales; followed by Arkansas, up 17.9 percent; Texas, up 11.3 percent; North Carolina, up 11 percent, and Vermont, up 9.1 percent compared to the spring of 2005.
"States with moderately priced areas that have experienced healthy job creation are seeing sales gains," said David Lereah, chief economist for the Realtors. "The economic backdrop remains favorable for the housing market, which is helping home sales level out."
In a separate survey of price changes in 151 metropolitan areas, the Realtors reported that 26 metro areas experienced outright price declines while 37 areas were still enjoying double-digit price increases.
The biggest price drops in percentage terms were in Danville, Ill., where home prices fell by 11.2 percent in the spring compared with the spring of 2005, and the Detroit area, where home prices were down 8 percent.
Thursday, August 10, 2006
BUY Land, They've Stopped Making It!"
Land Investment
LAND has, just like most other precious commodities, an eternal value. It's a good investment option. Just like Gold, Platinum and Diamonds.
Investing in plots, lands, houses or buildings however is a absolutely necessary for people who want to live or work there.1031 Exchanges, Developments, or just Investment can make you 100% return on your money. But you must not forget that the value of the investment is in the expected return, and the risks involved, and not in its physical features. Return from real estate investments is obtained from rental/lease/possible capital appreciation. It can be enhanced by the benefits of taking a loan against the real estate asset.
Key Factors in Land Investment
1). The first and most important rule is to act according to your strengths. Take into account all the aspects relating to your income and budget. You should also to decide on where to and in whose name to invest.
2). The property can be jointly purchased in the name of two or more family members.
3). For joint purchase, investment by the co-owners should be in proportion with their owner ship in the property. For instance, if the property is proposed to be purchased in the name of husband and wife the ratio of 50 : 50, then the investment should also be in the ratio of 50 : 50.
4). Avoid making investment in properties in the name of minor children.
5). In the initial stages your land investment, you look for prime areas where there is less demand and where the premiums are low.
6). For purchasing the landed property, the location should be easily accessible for all basic facilities including hospital and transportation facilities.
7). One should keep in mind about the potential of the area and the property for future yields.
8). Do not invest in already mushrooming localities or in areas where the price of real estate in pretty high. Invest only in the areas that are developing.
9). Decide on your budget and evaluate your current liabilities and savings.
10). Buying plots, vast lands for commercial purposes would do much better profits as the value increases day by day.
11). Investing in Real Estate Investments Trusts (REITS), popular in USA would also bring good profits.
Risks Factors in Land Investments
The real estate market could be a risky proposition for investors not intending to hold the property for long. If you are intend to purchase the landed property, do not rush into calling sellers, real estate brokers or consultants without making upfront preparation. If you hire the services of a real estate brokers make clear your specifications and expatiations. Tell him about your budget too.
The following are risks factors in land investments.
i) Lack of Liquidity: Direct investments requires large commitments of funds and that makes diversification of an investors portfolio difficult. Investments in land or real estate is also difficult to convert to cost quickly. Ownership history, possession and occupation of the property etc., can lead to complexity in transactions.
ii) Maintenance burden: Property maintenance involves significant amount, time, effort and costs. Further, add to this the risk of unauthorised entries/trespassers and change in Governmental regulations. This includes controls over ownership land use and other planning controls and landlold and tenancy litigations.
iii) Government Charges: Government uses the real estate as a taxation over the transactions between the parties. The vendor has to bear stamp duties and registration charges, land taxes and general levies at various level of authorities. Transaction costs in land investments are higher than most other investment avenues.
iv) High risk: Real estate can be regarded as a dangerous investment in the medium and short run, but is often considered safe in the long run.
v). Monopolistic market: Real Estate is one of the most information inefficient market. Information necessary to make informed decisions is difficult to obtain, often imprecise, and some times misleading or contradictory.
vi). Segmentation: Prices often more depending on what kind of property you have: it depends on whether it is commercial, retail or residential/ housing in nature. And this depends on the buyer perception, irrespective of what you might feel.
If one has to consider so many things risk of economic growth, risk of patience, risk of liquidity, risk of geographical concentration - would it not be better to invest in Real Estate Investment Trusts. That can trade in these risks and makes money out of them.
Real estate investment is also a leading indicator of economic growth in all market economies. So keep trade in land investment.
LAND has, just like most other precious commodities, an eternal value. It's a good investment option. Just like Gold, Platinum and Diamonds.
Investing in plots, lands, houses or buildings however is a absolutely necessary for people who want to live or work there.1031 Exchanges, Developments, or just Investment can make you 100% return on your money. But you must not forget that the value of the investment is in the expected return, and the risks involved, and not in its physical features. Return from real estate investments is obtained from rental/lease/possible capital appreciation. It can be enhanced by the benefits of taking a loan against the real estate asset.
Key Factors in Land Investment
1). The first and most important rule is to act according to your strengths. Take into account all the aspects relating to your income and budget. You should also to decide on where to and in whose name to invest.
2). The property can be jointly purchased in the name of two or more family members.
3). For joint purchase, investment by the co-owners should be in proportion with their owner ship in the property. For instance, if the property is proposed to be purchased in the name of husband and wife the ratio of 50 : 50, then the investment should also be in the ratio of 50 : 50.
4). Avoid making investment in properties in the name of minor children.
5). In the initial stages your land investment, you look for prime areas where there is less demand and where the premiums are low.
6). For purchasing the landed property, the location should be easily accessible for all basic facilities including hospital and transportation facilities.
7). One should keep in mind about the potential of the area and the property for future yields.
8). Do not invest in already mushrooming localities or in areas where the price of real estate in pretty high. Invest only in the areas that are developing.
9). Decide on your budget and evaluate your current liabilities and savings.
10). Buying plots, vast lands for commercial purposes would do much better profits as the value increases day by day.
11). Investing in Real Estate Investments Trusts (REITS), popular in USA would also bring good profits.
Risks Factors in Land Investments
The real estate market could be a risky proposition for investors not intending to hold the property for long. If you are intend to purchase the landed property, do not rush into calling sellers, real estate brokers or consultants without making upfront preparation. If you hire the services of a real estate brokers make clear your specifications and expatiations. Tell him about your budget too.
The following are risks factors in land investments.
i) Lack of Liquidity: Direct investments requires large commitments of funds and that makes diversification of an investors portfolio difficult. Investments in land or real estate is also difficult to convert to cost quickly. Ownership history, possession and occupation of the property etc., can lead to complexity in transactions.
ii) Maintenance burden: Property maintenance involves significant amount, time, effort and costs. Further, add to this the risk of unauthorised entries/trespassers and change in Governmental regulations. This includes controls over ownership land use and other planning controls and landlold and tenancy litigations.
iii) Government Charges: Government uses the real estate as a taxation over the transactions between the parties. The vendor has to bear stamp duties and registration charges, land taxes and general levies at various level of authorities. Transaction costs in land investments are higher than most other investment avenues.
iv) High risk: Real estate can be regarded as a dangerous investment in the medium and short run, but is often considered safe in the long run.
v). Monopolistic market: Real Estate is one of the most information inefficient market. Information necessary to make informed decisions is difficult to obtain, often imprecise, and some times misleading or contradictory.
vi). Segmentation: Prices often more depending on what kind of property you have: it depends on whether it is commercial, retail or residential/ housing in nature. And this depends on the buyer perception, irrespective of what you might feel.
If one has to consider so many things risk of economic growth, risk of patience, risk of liquidity, risk of geographical concentration - would it not be better to invest in Real Estate Investment Trusts. That can trade in these risks and makes money out of them.
Real estate investment is also a leading indicator of economic growth in all market economies. So keep trade in land investment.
Tuesday, August 01, 2006
Florida Residents Here's the Secret to Earning 1% Interest a Month for Four Months on Your Money
What's the highest interest rate you can earn now in a safe, government-sponsored program?
Did you say 4% per year? Wrong!
In Florida, for the next 4 months, every real property and tangible personal property taxpayer can earn an effective interest rate of 1% PER MONTH by paying taxes during the discount period!
Here's how simple it is: just pay your property taxes before March 1. Here's the way it works.
Taxes paid--i.e., received by the Tax Collector--during
November are subject to a 4% discount;
December are subject to a 3% discount;
January are subject to a 2% discount;
February are subject to a 1% discount.
Taxes paid after March 31 are delinquent and are subject to penalties and 1 1/2% delinquent interest per month.
In the same way that paying down your credit cards is the equivalent of earning interest at the same rate of interest that the credit card company is charging the customer on the outstanding balance, taking advantage of the 1% per month early payment discount on Florida property taxes is the same as earning interest at the rate of 12% per year on the amount of taxes you pay.
Don't say we didn't tell you!
About the author:
For a free consultation regarding your property, contact us at:
http://www.tannebaumweiss.com/property_tax.php
Did you say 4% per year? Wrong!
In Florida, for the next 4 months, every real property and tangible personal property taxpayer can earn an effective interest rate of 1% PER MONTH by paying taxes during the discount period!
Here's how simple it is: just pay your property taxes before March 1. Here's the way it works.
Taxes paid--i.e., received by the Tax Collector--during
November are subject to a 4% discount;
December are subject to a 3% discount;
January are subject to a 2% discount;
February are subject to a 1% discount.
Taxes paid after March 31 are delinquent and are subject to penalties and 1 1/2% delinquent interest per month.
In the same way that paying down your credit cards is the equivalent of earning interest at the same rate of interest that the credit card company is charging the customer on the outstanding balance, taking advantage of the 1% per month early payment discount on Florida property taxes is the same as earning interest at the rate of 12% per year on the amount of taxes you pay.
Don't say we didn't tell you!
About the author:
For a free consultation regarding your property, contact us at:
http://www.tannebaumweiss.com/property_tax.php
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