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Sunday, March 1, 2015

Fewer homes for sale pushes up US house prices in December

U.S. home prices rose in December at a faster pace than the previous month, likely because of a much smaller number of homes for sale.

The Standard & Poor's/Case-Shiller 20-city home price index, released Tuesday, increased 4.5 percent in December compared with 12 months earlier. That is up from 4.3 percent in November and the same as October's annual increase. The small gain comes after price increases had slowed for 12 straight months.

Americans are listing fewer homes for sale, pushing up prices and keeping many houses out of reach for would-be buyers. Home prices are rising faster than most Americans' wages, slowing sales even as hiring strengthens, consumer confidence grows and mortgages stay low.

Still, the smaller price gains are more sustainable and less harmful for potential buyers than last year's double-digit increases.

The Case-Shiller index covers roughly half of U.S. homes. The index measures prices compared with those in January 2000 and creates a three-month moving average. The December figures are the latest available.

The number of homes for sale in December was equal to just 4.4 months of sales, the lowest level in nearly two years. Six months of supply is typical for a healthy housing market.

"The housing recovery is faltering," said David Blitzer, chairman of the S&P's index committee. "While prices and sales of existing homes are close to normal, construction and new home sales remain weak."

All 20 cities reported higher prices than a year earlier. The biggest gains were in San Francisco, where prices rose 9.3 percent, and Miami, where they jumped 8.4 percent. Chicago reported the smallest gain, at 1.3 percent.

December's price rise is far ahead of wage gains. Average hourly wages rose at a faster pace in January compared with the previous month, but were just 2.2 percent higher than a year ago. Pay gains have been stuck largely at that level for most of the five years since the recession.

Sales of existing homes fell last year after two years of steady recovery. That has led many economists to forecast a rebound in sales in 2015, but so far there are few signs of it.

In January, existing home sales tumbled 4.9 percent to a seasonally adjusted annual rate of 4.82 million, the slowest pace in nine months, the National Association of Realtors said Monday.

And the construction of new homes fell 2 percent in January, the Commerce Department said last week.

Lower mortgage rates and strong job growth may yet spur more sales later this year. The average 30-year fixed mortgage rate was 3.76 percent last week, according to the mortgage giant Freddie Mac. That has ticked up in recent weeks, but is far below the 4.33 percent average from a year ago.

Employers have ramped up hiring, encouraged by strong growth last spring and summer. The U.S. economy added more than 1 million jobs from November through January, the fastest three-month pace in 17 years. More Americans earning paychecks should eventually push home sales higher.

By CHRISTOPHER S. RUGABER, Associated Press

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

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Sunday, February 8, 2015

With Tax Law Changes, Foreign Investment Could Take Off

With Tax Law Changes, Foreign Investment Could Take Off
Changes to FIRPTA could open up the floodgates for cross-border capital

By Les Shaver, www.multifamilyexecutive.com

The American apartment market has seen a dramatic rise in the influx of foreign capital over the past decade. But the panelists on the “Across the Universe - Where Is the Capital Coming From?” panel at National Multifamily Housing Council’s Apartment Strategies Conference expect an even bigger infusion if policymakers address tax law.

The Foreign Investment in Real Property Tax Act of 1980 (FIRPTA), which imposes income tax on foreign persons disposing of United States real estate, basically penalizes foreign investors for spending money in the United States.

If there is a change in that law, David Schwartz, CEO of Waterton Associates, thinks international capital flows could dramatically increase.

“If FIRPTA goes away, I think it opens the floodgates of capital even if you're just planting seeds today [of investment with potential foreign investors],” he said. “If there's no FIRPTA in two to three years. that money could be coming here.”

Land of Opportunity
The opportunity with foreign investors is real because of volatility in many other areas of the world, according to Schwartz. “The U.S is a safe haven,” he said. But just because foreign investors are interested in investing in American multifamily doesn’t mean they don’t hold some reservations. Clyde Holland, chairman and CEO, Holland Partner Group, claimed that reporting and communication can help assuage these fears.

Holland said that most of the foreign investors he has worked with prefer longer hold times so it’s important to develop a long-term strategic plan.

To help these investors gain a comfort level, Schwartz claimed it’s important to visit with them and educate them on their turf. “You need a much larger educational component to familiarize investors,” he said.

That education is important because, in some cases, the apartments that investors will be putting their money into can vary greatly from the multifamily they’re accustomed to in their home countries. For instance, in Canada rental apartments are often older concrete structures from the 60’s and 70’s.

“In Canada, the for-rent market is different,” said Janice Lin, director of the Canada Pension Plan Investment Board. “Class A here [in the U.S.] is condo there.”

But, on the flipside, if a country has a vibrant apartment market, it can make the sales job easier. “The Chinese really want to come to the U.S.,” Schwartz says. “They love it. They are really familiar with the concept of apartment housing.”

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

Thursday, February 5, 2015

Millennials are finally entering home-buying market

Millennials are finally entering home-buying market

Call them the prodigal millennials: Statistical measures and anecdotal reports suggest that young couples and singles in their late 20s and early 30s have begun making a belated entry into the home-buying market, pushed by mortgage rates in the mid-3% range, government efforts to ease credit requirements and deep frustrations at having to pay rising rents without creating equity.

Listen to Kathleen Hart, who just bought a condo unit with her husband, Devin Wall, that looks out on the Columbia River in Wenatchee, Wash.: "We were just tired of renting, tired of sharing with roommates and not having a place of our own. Finally the numbers added up."

Erin Beasley and her fiance closed on a condo in the Capitol Hill area of Washington, D.C., in January. "With the way rents kept on going," she said, "we realized it was time" after five years as tenants. "With renting, at some point you get really tired of it — you want to own, be able to make changes" that suit you, not some landlord.

Hart and Beasley are part of the leading edge of the massive millennial demographic bulge that has been missing in action on home buying since the end of the Great Recession. Instead of representing the 38% to 40% of purchases that real estate industry economists say would have been expected for first-timers, they've lagged behind in market share, sometimes by as much as 10 percentage points. But new signs are emerging that hint that maybe the conditions finally are right for them to shop and buy:

•Redfin, a national real estate brokerage, said that first-time buyers accounted for 57% of home tours conducted by its agents mid-month — the highest rate in recent years. Home-purchase education class requests, typically dominated by first-timers, jumped 27% in January over a year earlier. "I think it is significant," Redfin chief economist Nela Richardson said. "They are sticking a toe in the water."

•The Campbell/Inside Mortgage Finance HousingPulse Tracking Survey, which monthly polls 2,000 realty agents nationwide, reported that first-time buyer activity has started to increase much earlier than is typical seasonally. First-timers accounted for 36.3% of home purchases in December, according to the survey.

•Anecdotal reports from realty brokers around the country also point to exceptional activity in the last few weeks. Gary Kassan, an agent with Pinnacle Estate Properties in the Los Angeles area, says nearly half of his current clients are first-time buyers. Martha Floyd, an agent with McEnearney Associates Inc. Realtors in McLean, Va., said she is working with "an unusually high" number of young, first-time buyers. "I think there are green shoots here," she said, especially in contrast with a year ago.

Assuming these early impressions could point to a trend, what's driving the action? The decline in interest rates, high rents and sheer pent-up demand play major roles.

But there are other factors that could be at work. In the last few weeks, key sources of financing for entry-level buyers — the Federal Housing Administration and giant investors Fannie Mae and Freddie Mac — have announced consumer-friendly improvements to their rules. The FHA cut its punitively high upfront mortgage insurance premiums and Fannie and Freddie reduced minimum down payments to 3% from 5%.

Price increases on homes also have moderated in many areas, improving affordability. Plus many younger buyers have discovered the wide spectrum of special financing assistance programs open to them through state and local housing agencies.

Hart and her husband made use of one of the Washington State Housing Finance Commission's buyer assistance programs, which provides second-mortgage loans with zero interest rates to help with down payments and closing costs. Dozens of state agencies across the country offer help for first-timers, often with generous qualifying income limits.

Bottom line: Nobody knows yet whether or how long the uptick in first-time buyer activity will last, but there's no question that market conditions are encouraging. It just might be the right time.

By Kenneth R. Harney, Los Angeles Times

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

Friday, January 16, 2015

What Slowdown? Rent Growth Accelerated in 2014

What Slowdown? Rent Growth Accelerated in 2014
Rents grew a healthy 4.7 percent last year, the highest level since 2011, according to MPF Research.
By: Les Shaver, Multifamily Executive

Apparently fears of the apartment market slowing were overblown, according to a recent report from RealPage's MPF Research.

Rent growth accelerated to 4.7 percent in 2014, the highest figure since 2011. Usually the pace of rent growth slows after the first couple of years of a cycle, but this upturn is behaving differently, driven by strong job growth in higher-paying jobs in 2014.

“The overall economic performance was stronger than typical at this stage of the recovery,” said MPF Research vice president Greg Willett. “Job production went up 20 to 25 percent over the previous three or four years. In past years, 60 percent of those jobs were in low-paying industries. In 2014, 60 percent of those jobs were in higher paying industries.”

One surprising driver of growth was the fourth quarter, when things usually slow. Rents actually rose 0.6 percent during the last quarter of 2014, which was only the second time in the last decade rents rose so much at the tail-end of the year (the other time was 2005).

“The overall economic performance was stronger,” Willett says. “And, certainly if you compare it to last year, the weather was really cooperative, as well.”

Absorbing the Supply
The industry’s strong performance in 2014 came despite a 14-year high of 246,579 new completions in the nation’s 100 largest metros. But with demand at 268,532 units, the supply/demand equation was still in favor of landlords, as occupancy climbed 30 basis points to 95.3 percent.

Supply should increase this year as well. During 2015, 290,145 new units are expected to be delivered, which will put more pressure on apartment owners. But MPF expects actual deliveries to be less than that because of construction delays due to labor shortages in many markets. As such, the research firm forecasts 2015 new supply to be around 250,000 to 260,000 units, which will be on par with 2014’s tally.

MPF expects the market to be able to absorb those 250,000 to 260,000 new units. Overall, MPF expects rent growth of 3.5 to 4 percent for the year ahead. But the growth won’t be even.

“I do think we are in late innings for the urban core/really expensive apartments,” Willett says. “There just aren’t that many households out there who can afford that. Those units tend to be built for Millennials, but honestly they’re too expensive for them.”

But in other spots, outside of the urban core, 2015 looks a lot better.

“We still have a lot of runway for suburban or even urban fringe, where you’re just coming down from that 'Main and Main' price point by 10 or 20 percent,” Willett says. “The middle market is still going strong. The concern about the middle market was affordability. But if wage growth is getting better, maybe that’s not as big a problem as we thought it should be.”

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

Thursday, January 1, 2015

Will 2015 Be Better Or Worse For Real Estate?

Will 2015 Be Better Or Worse For Real Estate?

Forbes.com

Whether you’re looking to sell your home or spent the last year waffling between renting or buying, you probably have one question as we head into the new year: Will 2015 be better — or are we headed into another year of the same?

There’s no such thing as a real estate crystal ball, and anyone who claims to have all the answers probably has a hidden agenda. With many factors to consider, let’s take a closer look.

The recovery process — where are we?

Trulia’s Chief Economist Jed Kolko recently came to the conclusion that while none of the five measurements in Trulia's TRLA -0.64% Housing Barometer are completely back to normal, most are making progress. It’s been three years since prices bottomed out in 2011, and we are still very much in recovery mode with rebound effects slowing; housing prices are no longer significantly undervalued and the investor market is drying up.

As a former broker, I have to agree — the investor well is indeed dry. In the past week alone I’ve received calls from three investor groups inquiring about off-market deals in the Seattle metro area. They complained that rising prices have impacted the number of available opportunities and so they’re looking for additional sources. (Sorry! No deals here.)

The good news is that most of us think things are about to get better. Regardless of the slowing rebound effects, there is optimism in the air. According to the Trulia study, consumers think 2015 will be an improvement over 2014 for all real estate activities, especially for sellers.

The millennial factor

Undoubtedly, the purchasing power of the millennial demographic packs a serious punch. And it seems that home ownership still plays a key role in the American dream, especially among young adults — an overwhelming 93 percent of young adult renters responded yes when asked if they will be purchasing a home someday.

However, while millennials are willing to purchase a home, they are encountering barriers to executing on their dream. Hurdles such as saving a down payment, qualifying for a mortgage, and cleaning up derogatory credit items are fairly straightforward, but what about market affordability?

Making tough choices

“The number of homes for sale in my market within my price range is discouragingly low,” says Elizabeth Archer of Ukiah, CA. “I am really tired of renting, but I love the area and I’m not willing to look elsewhere. I’m crossing my fingers that some affordable houses will be for sale this spring.”

Archer is experiencing a widespread affordability issue termed the “millennial mismatch.” Millennials can afford markets where they don’t live, but they can’t afford many of the markets where they do live. They find themselves faced with a tough choice: rent for the long term or live in a less-desirable city.

From over 100 major metro cities, there were only two notable exceptions where millennials currently live and also can buy: Oklahoma City, OK, and Baton Rouge, LA. These cities have a high population of millennials and better-than-average affordability.

The bottom line

Although consumers are feeling hopeful, young people are having trouble finding jobs and affordable housing in areas they want to live in. Further hampered by weak construction growth, the housing recovery needs to play nice with the overall economic recovery to make an impactful difference.

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

Tuesday, December 23, 2014

November (Apartment) Sales are Slow, But Cap Rates Still Fall

November Sales are Slow, But Cap Rates Still Fall
So far this year, apartment transactions have totaled $96.9 billion.
By: Les Shaver, MultiFamily Executive

As the year winds down and investors gear up for 2015, apartment sales slowed in November.

Apartment transactions totaled $8.7 billion in the month, which was a 14 percent year-over-year decline, according to New York based Real Capital Analytics (RCA). The sale of garden communities fell 5 percent and mid- and high-rise sales dropped 27 percent.
Though the pace of sales slowed, cap rates continued to compress in November, dropping 10 basis points to 5.8 percent nationally. In the third quarter, cap rates hit record lows.

For 2014, the apartment sector has accounted for $96.9 billion, which is up 7 percent from last year.

“The sector is well on track to beat the $102.5 billion of volume recorded in 2013, and may top the all-time high of $105.2 billion recorded in 2007 but much of it depends on activity in December,” RCA said in the report.

Cap Rate Compression Since 2010

The deals closed in December to date, and the pipeline of end-of-year deals, has been modest, RCA reports. But a slowdown in the last two months of the year may actually be a sign of a strong market, unlike the spike in volumes seen earlier in the recovery

“We typically see a push to get deals out the door early in the fourth quarter in an effort to get them done before the end of the year,” says Joshua Goldfarb, managing partner of Atlanta-based Multi Housing Advisors. “In the holiday period, you see less new offerings and a lot of closings. In 2010 and 2011, we saw tremendous volume in the fourth quarter, but that was banks who wanted to get toxic assets off of their balance sheets by the end of year."

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

Saturday, December 6, 2014

Overvaluation Feared as Cap Rates Keep Shrinking

Overvaluation Feared as Cap Rates Keep Shrinking
Many industry vets wonder if today's investment market is getting a little too overheated.
By: Les Shaver, Multifamily Executive

How low can they go?

From 2005 through 2006, apartment cap rates hit a floor of 6.2 percent multiple times, before spiking back up to 7.2 percent after the credit crisis of late 2008, according to Real Capital Analytics (RCA).

But cap rates found a new bottom this year. In the third quarter of 2014, they fell to 5.9 percent, an all-time low, according to RCA. While there may not be a cataclysmic event like the 2008 financial crisis on the horizon, some apartment investors and owners are beginning to wonder if some buyers may be getting too aggressive.

While he still sees strong fundamentals, David Schwartz, CEO of Chicago-based Wateron Associates, is concerned some investors may be too reliant on interest rates staying low.

“It’s a great time to lock 10-year money today,” he says. “A lot of people are floating everything. That is generating good yields but it has risk.”

Matt Lester, the founder and CEO of Bloomfield Hills, Mich.-based Princeton Enterprises, thinks buyers who overpaid in the top markets may ultimately have a shorter lifespan because of overly optimistic rent growth predictions.

“There have been deals that got done, where any blip in performance or any unforeseen hurdle, could cause their acquisition or venture to tank,” he says. “I think we’re past the peak in cap rate compression.”

Not everyone has such dire predictions, but they’re prepared if multifamily has passed its peak in the cycle, which is now five years into recovery.

“If I’m paying the same cap rate in the fourth inning of a recovery as I am in the seventh inning, I don’t feel as comfortable,” says Bobby Lee, president and COO of Los Angeles-based JRK Property Holdings. “You have little bit less of runway. Pricing may have been the same as year ago, but know you have one less year of this outsized growth."

If buyers don’t realize that, Lee thinks they could be in trouble.

“To me the fundamentals of multifamily won’t kill multifamily,” Lee says. “Unless there is massive overbuilding in a market, what can kill multifamily is if you buy too expensively and overleverage. The price and value of what you pay for today is probably your single biggest risk on a micro basis.”

Sunny Days Ahead?

While even observers like Schwartz might have questions about certain deals, there are a couple of notable differences in today’s market versus the mid 2000’s.

Positive leverage on deals (with cap rates trending higher than interest rates) and strong demand (the last cycle saw high moveouts to home ownership) gives the apartment business a boost it didn’t have last time.

“I still think the fundamentals are terrific and the stars are aligned from the standpoint of capital,” says Mark Alfieri, CEO of Plano, Texas-based Monogram Residential Trust. “I don’t see anything in multifamily sector from a supply or demand standpoint that has me concerned right now.”

When judging cap rates, observers usually look to the risk premium, or the spread between cap rates and the 10-year Treasury. And right now, things are solid on that front.

“The spreads between rates and treasuries are still pretty wide and the outlook for NOI is pretty good right now,” says Ben Thypin, director of market analysis at RCA.

Brian E. McAuliffe, senior managing director for Los Angeles-based CBRE Group, is maybe even more bullish. While oversupply, a spike in treasuries, or a political event could push up cap rates, he points to demographics (Millennials moving into higher paying jobs), positive job growth, and a sluggish single-family markets as factors that could continue pushing cap rates down.

“There has been a lot of discussion about whether we we’re in the seventh inning or eighth inning of the recovery,” he says, going back to the baseball analogy. “Given where performance was on the supply side, there is a significant amount of experts who think we’re in the fourth and fifth inning of multifamily performance.”

Multifamily Executive
Boise Idaho Investment Properties

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

Thursday, November 27, 2014

Boise home prices return to 2008 levels

Boise home prices return to 2008 levels

Median housing prices nationwide – and in Boise – are at the highest rate since 2008, according to statistics released by RealtyTrac, a leading housing data source.

Ada County’s average home price for 2014 is $209,900, a 6 percent increase over last year, according to the Ada County Association of Realtors.

RealtyTrac pegs the national median sales price for October at $183,000, up 16 percent from a year ago to the highest level since September 2008.

“I think around 200,000, 205,000, 210,000 is the right place for us to be right now,” said Marc Lebowitz, executive director of the Ada County Association of Realtors.

Ada County bottomed out at $146,000 in 2011.

Combining Ada and Canyon Counties, RealtyTrac placed Treasure Valley among 21 cities deemed to have “lost steam” with home price appreciation from October 2013 to October 2014. Home appreciation in Boise-Nampa stumbled from 23 to 0 percent in the last year, the lowest among all the “losing steam” cities that include nine California metros and Phoenix.

Lebowitz, however, sees a half-full glass with home price appreciation.

“We are ahead of the timeline,” he said. “Our prices increased ahead of theirs, ours fell sooner than theirs and our recovery is starting sooner than theirs.”

Lebowitz believes home appreciation in Boise is starting an upward trajectory while other “losing steam cities may still see drops in home appreciation rates.”

Boise, however, is ahead of the nation on foreclosures. It is seeing half the foreclosure rates of the country as a whole. Foreclosures among outstanding Boise mortgages in September were at .8 percent, down from 1.47 percent in September 2013, according to real estate data provider CoreLogic.

The national foreclosure rate was 1.6 percent, CoreLogic reported.

Monday, November 17, 2014

Kennedy Wilson Acquires 324-Unit Apartment Community in Boise

Kennedy Wilson Acquires 324-Unit Apartment Community in Boise

YTD acquisitions for Company and its equity partners exceed $3 billion as global multifamily portfolio tops 20,000 units

BEVERLY HILLS, Calif., Nov 13, 2014 (BUSINESS WIRE) -- Global real estate investment and services firm Kennedy Wilson (NYSE: KW) today announced that the Company purchased Reflections at River’s Edge, a 324-unit apartment community located in Boise, Idaho for $29.75 million investing $15.3 million of equity in the transaction (including closing costs). The Company also assumed debt of $15.2 million through Fannie Mae at a fixed rate of 5.3% with 5-years of interest only remaining.

“We are extremely excited to begin our presence in the Boise market with the acquisition of Reflections at River’s Edge,” said Kurt Zech, President of Kennedy Wilson Multifamily. “Boise is a strong, stable market with unemployment well below the national average. Employment and population growth has been very strong and have outpaced the national growth rate over the past decade.”

Reflections is located in the West End neighborhood of Boise. The property sits on a picturesque lake and is located 1.5 miles from downtown Boise. The adjacent greenbelt bike path provides tenants with easy access to Downtown and Boise State University. Immediately north of Reflections, a large parcel will soon be developed into a multi-use regional park. The Esther Simplot Park is a 55-acre property that includes 17 acres of ponds and will include fishing ponds, picnic areas, green spaces, public amphitheater and a whitewater park.

Kennedy Wilson’s global multifamily portfolio now totals 20,007 units. Real estate related acquisitions by the company and its equity partners year-to-date total more than $3.0 billion, which includes approximately $2.3 billion acquired by Kennedy Wilson Europe Real Estate plc.

About Kennedy Wilson

Founded in 1977, Kennedy Wilson is a vertically integrated global real estate investment and services company headquartered in Beverly Hills, CA, with 25 offices in the U.S., U.K., Ireland, Spain, Jersey and Japan. The company, on its own or with partners, invests opportunistically in a variety of real estate related investments, including commercial, multifamily, loan purchases and originations, residential, and hotels. Kennedy Wilson offers a comprehensive array of real estate services including investment management, property services, auction, conventional sales, brokerage and research. For further information on Kennedy Wilson, please visit www.kennedywilson.com.

SOURCE: Kennedy Wilson

Kennedy Wilson
Christina Cha, 310-887-6217
VP of Corporate Communication
ir@kennedywilson.com
www.kennedywilson.com

Copyright Business Wire 2014

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

Friday, November 14, 2014

Multifamily Holding Strong!

Multifamily Holding Strong! Multifamily Holding Strong!

The national apartment market strength is not slowing down though many predicted it would. As national effective rent growth reached a 35 month high in September, occupancy remained above 95 %.

September’s effective rent growth of 4.3%, the strongest since the 4.4% of October 2011, is a 22-basis-point (bps) increase from August 2014's 4.1% and a 131-bps difference from September 2013's 3.0%.

Year-to-date (YTD) effective rent growth decreased by 2 bps to 5.5% in September, which is not surprising given the trends of the recovery period. YTD rent growth has peaked in August or September during the past four years and then declined somewhat before the end of the year.

Meanwhile, YTD effective rent growth was stronger than any other post-recession year for the sixth straight month and is still stronger than the 5.2% recorded for the first nine months of 2010 and 2011.

National occupancy declined by 10 basis points from August’s 95.2% to 95.1%, the second highest rate since Axiometrics started reporting on a monthly basis in April 2008.

Historically, occupancy peaks in August or September, so the market appears to be following its seasonal pattern, but at a higher level.

This apartment cycle – which began in 2010 – is already longer than the last one (2004 -2008), and the market continues to perform strongly. The apartment sector’s strength is surprising to many analysts, especially so deep into the current cycle.

The main factors driving this cycle’s second peak include the growing number of prime renters, those between 20-34 years old, and the fact that these renters are unwilling or unable to purchase homes.

The population in the prime renter cohort is larger than in the last cycle. Also, the home ownership rate has decreased from the last cycle. The prime renter age group is either not willing to or not able to purchase a home.

Ten years ago, the prime renter age group population (red bars in the chart below) was smaller. This cohort was also more interested in owning homes.

Another reason for the spike in rent growth at the beginning of the current cycle is that supply and demand were misaligned. Rent growth really started to pick up when the economic recovery began and job growth accelerated. Meanwhile, little, if any, new apartment supply was being delivered. Now that new units are being delivered, job growth and rent growth are more in balance.

-Axiometrics Inc.

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

Thursday, October 16, 2014

JUST LISTED - 7.25%+ Cap 13 Unit Apartment Building Caldwell ID blocks from College of Idaho

Indiana Avenue Apts. Thirteen Unit Apartment Building close to College of Idaho in Caldwell. Eight units on main floor with highly desirable townhouse style 2 Bedroom and 1 bath units. Four lower level apartments and one exterior apartment; all 2 bedroom 1 bath units. Low vacancy rates; vacant units typically pre-rented. Located close to business corridor between Nampa and Caldwell; shopping, employment centers, movie theater/restaurant complex, etc. Convenient coin operated laundry in building. Click here for listing for listing information.

Friday, October 3, 2014

Looking to Move to Boise Idaho or Invest in Boise Idaho Real Estate? Check out this video!

Check out this REALLY cool video from Greenbelt Magazine. If you are looking to move to Boise Idaho, you'll see a host of reasons to do so in this video. If you are looking for a home in Boise Idaho or an investment property in Boise Idaho, please call or email us. We can help you!

Friday, September 26, 2014

Home Selling Tips Every Seller Should Know

Home Selling Tips Every Seller Should Know

Price Your Home Realistically From the Start

94.3 percent of agents say this is a very important tip

0.0 percent of agents don’t recommend this tip

The largest number of showings will occur in the first couple of weeks, so don’t turn these potential buyers off with an unrealistically high price!

Keep Your House Clean, Tidy and De-cluttered

91.4 percent of agents say this is a very important tip

0.4 percent of agents don’t recommend this tip

It pays to keep your home in excellent shape at all times. You never know when a buyer might walk through the front door!

Work With an Agent Who Excels at Online Marketing

90.7 percent of agents say this is a very important tip

0.6 percent of agents don’t recommend this tip

Work with an agent who will do a good job marketing your home online. Your agent should take at least 6 listing photos and write a compelling listing description for your home.

Make It Easy to Show Your Home

90.3 percent of agents say this is a very important tip

0.4 percent of agents don’t recommend this tip

Make it as easy as possible for agents to show your home to clients. Don’t require appointments to be made weeks in advance or severely limit possible showing times.

Don’t Sign With an Unqualified Buyer

87.8 percent of agents say this is a very important tip

0.6 percent of agents don’t recommend this tip

Don’t sign a purchase agreement with an unqualified buyer. It’s not unreasonable to expect buyers to bring pre-approval letters (or proof of funds for cash purchases) to show they can buy your home.

Listen to Your Agent!

83.9 percent of agents say this is a very important tip

0.8 percent of agents don’t recommend this tip

Listen to your real estate agent! Find an agent you can trust and follow their advice and recommendations as closely as you can.

Make Small Upgrades to Your Home

83.6 percent of agents say this is a very important tip

0.2 percent of agents don’t recommend this tip

Make small upgrades to help your home sell for top dollar. These upgrades can include applying a fresh coat of paint, replacing door handles, curtains and cabinet hardware, fixing leaky faucets and cleaning the grout.

Work With an Agent Who Follows the Competition

82.4 percent of agents say this is a very important tip

1.4 percent of agents don’t recommend this tip

Work with an agent that will closely follow your competition. Your agent must be familiar with other properties on the market and know the comps in your neighborhood.

Stage Your Home’s Exterior

76.0 percent of agents say this is a very important tip

0.0 percent of agents don’t recommend this tip

Stage the exterior of your home: Spruce up the landscaping, trim vegetation, clean walkways of debris and apply fresh coats of paint to the house, fence and deck.

Don’t Insist on the Asking Price

72.0 percent of agents say this is a very important tip

3.0 percent of agents don’t recommend this tip

Don’t insist on selling your house for your asking price, its appraised value, the tax assessor’s estimate, or what you paid for it – your house is ultimately worth what the buyer is willing to pay for it!

Alert Family and Friends

67.7 percent of agents say this is a very important tip

0.6 percent of agents don’t recommend this tip

Alert your friends, relatives and neighbors that your home is on the market via email and social media. They may forward your home’s listing to buyers they know.

Make Your Home Move-In Ready

66.6 percent of agents say this is a very important tip

0.9 percent of agents don’t recommend this tip

Make your home move-in ready before it hits the market, so buyers know they won’t have a to-do list if they buy it.

Brighten Up Your Home

64.8 percent of agents say this is a very important tip

1.0 percent of agents don’t recommend this tip

Maximize the amount of light in your home. Take down drapes, clean windows and cut bushes to let sunshine in.

Clear Out Your Closets

63.1 percent of agents say this is a very important tip

1.0 percent of agents don’t recommend this tip

Because storage space is an important consideration for buyers, take half of the stuff out of your closets and neatly organize the rest.

Don’t Take the First Offer

59.4 percent of agents say this is a very important tip

3.4 percent of agents don’t recommend this tip

Don’t get over-excited when you get an offer! Examine each offer carefully and take your time deciding if you want to accept it.

De-Personalize Your Home

57.9 percent of agents say this is a very important tip

2.6 percent of agents don’t recommend this tip

Personal items make it harder for buyers to imagine themselves living in your home. Put family photos, trophies, memorabilia and other personal keepsakes in storage.

Don’t Over-Upgrade

56.6 percent of agents say this is a very important tip

1.7 percent of agents don’t recommend this tip

You probably won’t get your money back if you do a huge improvement project just before you put your house on the market.

Conceal Your Pets

52.8 percent of agents say this is a very important tip

5.5 percent of agents don’t recommend this tip

Pets give the impression your house isn’t clean, so hide them, their litter boxes, food dishes and toys during showings.

Don’t Work With the First Agent You Find

51.8 percent of agents say this is a very important tip

5.9 percent of agents don’t recommend this tip

Interview multiple agents before choosing one to work with. Select your agent based on their marketing plan, experience, work ethic and communication skills.

Hire a Professional Listing Photographer

37.1 percent of agents say this is a very important tip

16.4 percent of agents don’t recommend this tip

Hire a professional photographer to take pictures of your home if your agent doesn’t do so. Professional listing photos only cost $100-300 and can increase your home’s sale price by up to $19,000.

Throw Buyers a Bone to Close Escrow Quickly

29.5 percent of agents say this is a very important tip

10.8 percent of agents don’t recommend this tip

If you want a speedy and hassle-free escrow, throw your buyer a bone (like an early closing or a one-year home warranty) if they ask for one. You want to be in their good graces during escrow and after the sale.

Offer Up Extras to the Buyers

17.0 percent of agents say this is a very important tip

14.7 percent of agents don’t recommend this tip

Offer to leave behind items as extras, like high-end appliances and electronics, or if you live on a golf course, your golf cart.

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

Wednesday, August 6, 2014

Buying a House? 4 Reasons to DO IT NOW

Here are four great reasons to consider buying a home today, instead of waiting.

1. Prices Will Continue to Rise

The Home Price Expectation Survey polls a distinguished panel of over 100 economists, investment strategists, and housing market analysts. Their most recent report projects appreciation in home values over the next five years to be between 30.8% (most optimistic) and 9.4% (most pessimistic).

The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.

2. Mortgage Interest Rates Are Projected to Increase

Although the Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage are currently around 4.2%, Freddie Mac is projecting that rates will increase to 5.2% by this time next year.

An increase in rates will impact YOUR monthly mortgage payment. Your housing expense will be more a year from now if a mortgage is necessary to purchase your next home.

3. Either Way, You are Paying a Mortgage

As a research paper from the Joint Center for Housing Studies at Harvard University explains:

“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return. That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”

4. It’s Time to Move On with Your Life

The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise.

But, what if they weren’t? Would you wait?

Look at the actual reason you are buying and decide whether it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer, or you just want to have control over renovations, maybe it is time to buy.

If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.