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Monthly Archives: March 2011

Upper East Side Sees Increase in Vacancies: New Market Trend or Census Data Flaw?

March 29, 2011 Posted by Sandie under Real Estate
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New York City’s Upper East Side, especially along Central Park, boasts the most expensive real estate in the city. According to the 2010 census, this area had the highest percentage of vacant housing units in the city this past year.

Over the last 10 years, vacancies have increased in the area by 26 percent. The increase in vacancies has occurred despite a 3.8 percent decrease in the number of housing units during the same time period, and has caused people to question whether the census data is in fact flawed.

There are relevant questions that must be taken into account that may have affected the census data. Is it possible that people were at their Hampton homes during the time of the survey? Or has the financial crisis forced people to move out of the area and into cheaper zip codes?

According to Jonathan Miller, a well-known real estate appraiser from Miller Samuel Inc., “In some strange way, the high vacancy rate suggests more affluence.” Miller says that despite the reported increase in vacancies, “It doesn’t mean these houses are empty.”

For the purposes of the census, a vacant housing unit is characterized as such “if no one is living in it at the time [of the count] unless its occupants are only temporarily absent.” The census website also notes, “Units temporarily occupied at the time of enumeration entirely by people who have a usual residence elsewhere are also classified as vacant.”

Questions still remain about the accuracy of the census data and what the results of the survey mean for the future of the real estate market in New York’s more affluent neighborhoods.

“The big question is what about the vacancies,” said Andrew Beveridge, professor of sociology and demographic expert at Queens College. “New York was growing, but after Lehman [brothers collapsed] it just stopped,” said Beveridge. “I think the census might have counted properly.”

Read more at DNAInfo.

Real Estate Market Shifts: Buyers Seek Smaller Houses

March 15, 2011 Posted by Sandie under Real Estate
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A recent study from the National Association of Home Builders (NAHB) shed light on the current state of the real estate market and gave projections for the future. What the study found is that as a result of the recent housing slump, people are looking for smaller houses.

According to the NAHB report, builders “surveyed expect homes to average 2,152 square feet in 2015, 10 percent smaller than the average size of single-family homes started in the first three quarters of 2010. To save on square footage, the living room is high on the endangered list – 52 percent of builders expect it to be merged with other spaces in the home by 2015 and 30 percent said it will vanish entirely.”

The report notes the increasing importance of green and eco-friendly homes. “In addition to floor plan changes, 68 percent of builders surveyed say that homes in 2015 will also include more green features and technology, including low-E windows; engineered wood beams, joists or tresses; water-efficient features such as dual-flush toilets or low-flow faucets; and an Energy Star rating for the whole house.”

According to the U.S. Department of Housing and Urban Development, home sales have been increasing due to the affordability of existing homes. Despite this good news, the report also noted that the “housing market remains fragile as data through January paint a mixed picture of recovery. Existing home sales ticked upward in January, but remained below levels seen in the first half of 2010. Mortgage delinquencies continued a downward trend compared to early 2010 and foreclosure starts and completions remain below peak.”

If you want to learn more about the results of the NAHB survey, read more from Realty Times.

Start planning your next getaway; TripAdvisor ranks top vacation rental hot spots for 2011

March 11, 2011 Posted by Sandie under Real Estate
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Trying to decide where to vacation this year? TripAdvisor.com, one of the world’s largest travel sites, just released their list of the top vacation rental hot spots for 2011. This year’s list has something for everyone, from summer beach getaway spots to areas with top-notch ski resorts.

“Vacation rentals can offer families and groups of travelers significant savings over other accommodation options,” says Hank Hudepohl, TripAdvisor’s director of vacation rentals.

The list:

  1. Kissimee, Florida
  2. Big Bear Lake, California
  3. Gatlinburg, Tennessee
  4. Kihei, Hawaii
  5. Destin, Florida
  6. Palm Springs, California
  7. Outer Banks, North Carolina
  8. Lahaina, Hawaii
  9. Hilton Head, South Carolina
  10. Cape Cod, Massachusetts

According to Hudepohl, this year’s list shows off some of the “best vacation rental destinations in the U.S. where travelers can save big.”

Read more about the vacation hot spots that made the cut on RIS Media.

Wealthy Buyers Re-Emerge in Real Estate Market

March 7, 2011 Posted by Sandie under Real Estate
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“It hasn’t been a good six months for all people, but it was a good six months for rich people,” says Glenn Kelman, CEO of Redfin real estate brokerage. The numbers seem to back up Kelman’s assertion; despite a four-year decline in the housing market, the rich are back in the real estate game.

Sales of million-dollar homes and condos rose last year in all 20 major metro areas. The average jump in high-end home sales in these areas was reportedly 18.6 percent.

What’s the inspiration behind the re-emergence of wealthy buyers in the market? According to Kelman, “When Wall Street goes up, rich people buy homes.” Take a look at the market and you’ll see that stock values have almost doubled from their March 2009 lows.

Greg McBride, chief economist at Bankrate.com, said that “Higher income households are feeling better about their financial security.” The biggest market for million-dollar homes, San Jose, California, saw a 27.4 percent spike in sales last year.

The wealthy have taken advantage of the dip in home prices, and getting mortgages for these homes has become cheaper too. Normally buyers must take out a jumbo loan in order to finance a mortgage above the $417,000 threshold. Loans for homes that fall above the threshold typically have higher interest rates because they are what is technically referred to as non-conforming, or higher risk – not backed by Fannie or Freddie. Whereas interest rates on homes with higher mortgages have typically been significantly higher than average, by 2010 the difference between interest rates for average buyers and buyers of high-end homes had shrunk to just 0.6 percent more.

To read more, visit the CNN Money site.

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  • Upper East Side Sees Increase in Vacancies: New Market Trend or Census Data Flaw?
  • Real Estate Market Shifts: Buyers Seek Smaller Houses
  • Start planning your next getaway; TripAdvisor ranks top vacation rental hot spots for 2011
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