Top Ways to Refinance Investment Property: Real Estate Market Trends

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Is it possible to refinance a property if you don’t live in it?  

Yes.

But even with mortgage rates as low as they are, for some people, “it just doesn’t make sense” for them to refinance a rental property, or they are being told they can’t refinance an investment property.

How can this be?

In today’s mortgage market, quite a few home loan programs for investment properties are available through Fannie Mae or Freddie Mac — but there are still portfolio lenders offering investment property programs that Fannie Mae and Freddie Mac don’t offer.

Translation: Just because one lender tells you it isn’t possible to refinance your investment property, it doesn’t mean that it isn’t possible.

For those people who have recently heard that it wasn’t possible to refinance their investment property, it is likely that they were given one of two common reasons: MORE

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Real Estate Outcomes Sept-Oct2011: Chicago’s North Shore

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MARKET REPORTS & TRENDS

Property Sales

September Property sales were 6, equal to 6 in September of 2010 and -57.1% lower than the  14 sales last month.  September 2011 sales were at their lowest level compared to September of 2010 and 2009.  September YTD sales of 105 are running 32.9% ahead of  last year’s year-to-date sales of 79.

Prices

The Median Sales Price in September was $674,500, down -31.0% from $977,500 in September of 2010 and down -26.7% from $920,000 last month.  The Average Sales Price in September was $1,096,083, up 12.0% from $979,000 in September of 2010 and up 2.6% from $1,068,786 last month.  September 2011 ASP was at highest level compared to September of 2010 and 2009.

Inventory & MSI

The Total Inventory of Properties available for sale as of September was 109, down -14.2% from 127 last month and down -18.0% from 133 in September of last year.  September 2011 Inventory was at the lowest level compared to September of 2010 and 2009.

A comparatively lower MSI (monthly supply inventory) is more beneficial for sellers while a higher MSI is better for buyers.  The September 2011 MSI of 18.2 months was at a mid range compared with September of 2010 and 2009.

Market Time

The average Days On Market(DOM) shows how many days the average Property is on the Market before it sells.  An upward trend in DOM tends to indicate a move towards more of a Buyer’s market, a downward trend a move towards more of a Seller’s market.  The DOM for September was 73, down -27.7% from 101 days last month and down -47.1% from 138 days in September of last year.  The September 2011 DOM was at its lowest level compared with September of 2010 and 2009.

Inventory / New Listings / Sales

‘This last view of the market combines monthly inventory of Properties for sale along with New Listings and Sales.  The graph shows the basic annual seasonality of the market as well as the relationship between these items.  The number of New Listings in September 2011 was 16, down -27.3% from 22 last month and down -30.4% from 23 in September of last year.

For More Specific Area Market Analysis Visit: COMMUNITY REPORTS

SEPTEMBER-OCTOBER 2011

To Rent or For Rent?..That is the Question: Real Estate Market News

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It’s normal to have some vacant homes for sale as part of the
market process that matches buyers with sellers. On average during the 1990s,
for example, the home vacancy rate was about 1.5 percent, according to the
Census Bureau. By 2008, the figure had risen to 2.9 percent. And by the second
quarter of this year, the vacancy rate had come down only slightly, to about 2.5
percent. With this much supply still available, it’s no wonder that prices are
still depressed.

Excess Empty Homes

The percentage-point difference between the latest vacancy rate
(2.5 percent) and a more normal historical rate (1.5 percent) amounts to an
excess inventory of almost 1 million vacant homes. (Estimates based on other
methodologies are roughly in that range.) If the government does nothing, that
extra inventory will be slowly worked off, as the economy gradually recovers and
more households are formed. The question is whether the government can do
anything to accelerate that process, to support home prices and, ultimately, to
promote a stronger economic recovery.

A more realistic approach would be to try to get the vacant
houses rented out, rather than sold to owner- occupants. And one way to do that
— proposed by real- estate practitioners (such as Kyle Jividen of Alamo
Appraisal Group in San Antonio) and economists (such as William Wheaton of the
Massachusetts Institute of Technology and Gleb Nechayev of the research firm
CBRE Econometric Advisors) — is to provide an immediate tax write-off to
investors who buy vacant houses and rent them out.

One way to bolster demand would be to change our immigration
laws to make it easier for foreigners to move here and buy homes. That might be
a good idea, but it has no chance of being enacted soon. Former Federal Reserve
Chairman Alan Greenspan……MORE

Rates Fall, Mortgage Apps Climb:North Shore Market News

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Mortgage applications rose 9.3% this past week as borrowers refinanced their
home loans at exceptionally low interest rates.

The Mortgage Bankers Association said refinancing apps grew
dramatically, with the refi index jumping 11.2%, after the Fed announced it
would move its portfolio towards longer-term Treasury securities.

Meanwhile, the purchase index grew 2.6%, suggesting an increase in new home
applications at the lower interest rates.

“With lower rates, refinance application volume increased to its highest
level since August 19, 2011,” said Mike Fratantoni, the MBA’s vice president of
research and economics.  “Purchase application volume also increased. However,
the increase was in conventional purchase applications, which were up by 4.9
percent. Purchase applications for government loans fell by 0.6 percent over the
week, likely influenced by the pending decline in FHA loan limits.”

The refinancing share of mortgage activity grew to 79.7% of all applications,
up from 78.3% the previous week..MORE

North Shore-Glencoe Real Estate Trends: August2011

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“Housing sales in Illinois and the nine-county Chicago region increased in August and positive year-to-year changes are forecast in both the Chicago PMSA and Illinois for the next three months of September, October and November,” said Dr. Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory (REAL) of the University of Illinois.

“A strong buyer’s market continues in the Illinois housing market with record low mortgage interest rates and lower home prices although job worries and overall economic uncertainty are holding many back,” said REALTOR® Sheryl Grider Whitehurst, ABR, CRB, GRI, e-PRO, president of the Illinois Association of REALTORS® and a managing broker for Traders Realty in Peoria. “In some local markets prices are firming as homes are selling due to high affordability conditions and pent-up demand; 8.5 percent more homes sold statewide in August compared to the previous month of July.”

Adds Hewings: “Once again the debate has been joined about the appropriate response from the federal government to the lagging economy—attention to the deficit or a second stimulus package—but increasingly consumers are signaling frustration with Washington politics. The uncertainties and lack of a clearly articulated economic recovery strategy combine to dampen prospects for a sustained housing recovery.”

Sales and price information is generated from a survey of Multiple Listing Service sales reported by 32 participating Illinois REALTOR® local boards and associations including Midwest Real Estate Data LLC data as of September 7, 2011 reported for the period August 1 through August 31, 2011. The Chicago PMSA, as defined by the U.S. Census Bureau, includes the counties of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will.

The Illinois Association of REALTORS® is a voluntary trade association whose 44,000 members are engaged in all facets of the real estate industry. In addition to serving the professional needs of its members, the Illinois Association of REALTORS® works to protect the rights of private property owners in the state by recommending and promoting legislation that safeguards and advances the interest of real property ownership.

Find Illinois housing stats data and the University of Illinois REAL forecast at www.illinoisrealtor.org/marketstats.

Don’t Miss This Home – Bids Accepted Till Sept 28th!

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A rare opportunity for North Shore Real Estate, in Glenview,Illinois. NOT A FORECLOSURE OR SHORT SALE.  Bids are being accepted on this property until September 28th. Act fast!

821 Harlem Ave, Glenview

Contact Gloria Matlin for more details:

Glencoe Real Estate Reports August-Sept2011: Chicago’s North Shore

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The Glencoe/North Shore, Illinois area shows upward progress for another month!  Click the market action report below for detailed information or at : http://www.gloriamatlin.com/  Look for the tab “community reports” once on the website!

Gloria Matlin is a top North Shore real estate resource! A top producing, top selling realtor serving IllinoisGlencoe, Highland Park, Winnetka, Wilmette, Kenilworth, Northbrook, Deerfield, Northfield, Lincolnshire, Buffalo Grove, Skokie and Glenview areas with pride. Gloria is a seasoned specialist in the field of real estate. A Coldwell Banker broker associate in Glencoe, with over 20 years of national top 2% success, and a member of the International Presidents Elite “Coldwell Banker Presidents Club”. With compassion, grace and tenacity, she strives for excellence. She is known as North Shore’s consummate real estate professional.

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