For many years, it has seemed that new home builders were ignoring first time home buyers to focus on the most lucrative demographics in the middle to high-end home market. The housing market had made it apparent that in this post-recession time that prices are rising quickly and first time home buyers have been priced out.
Well, that seems to be a thing of the past. Not that the market is not seeing tremendous upside growth, but that home builders might be changing their target.
By spending years building homes for those with easy access to funds, less credit restraint, and high-end tastes they have created enough homes to meet demand while creating a shortage of smaller, more affordable homes. Reports are apparently shedding light on the fact that sales of medium size, single-family home sales have decreased up to 70%, while homes under $200,000 have increased dramatically.
As one would expect from any keen business person, one should follow supply and demand.
Statistics show that the job market has produced more income and the demand for home buying is there. Couple that with the fact that the number of sales units are decreasing and it becomes clear that the buyers are not willing or able to afford the larger, higher priced homes that have quickly become available via new home builds focused on the medium to higher end buyers.
Smart money follows the trends. The smaller, single family new homes market has been ignored for too long. It is time to build and profit from the clear demand of this overlooked market segment.
http://elitetitleagencyfl.com/wp-content/uploads/2019/04/elite-title-400x248.png00support_8dbahttp://elitetitleagencyfl.com/wp-content/uploads/2019/04/elite-title-400x248.pngsupport_8dba2016-12-15 23:07:332016-12-15 23:07:33First Time Home Buyers Are Being Targeted
H.R. 3700 is now law. The Housing Opportunity Through Modernization Act was activated by the signature of President Obama back in July 2016. The National Association of Realtors (NAR) has lauded this bill as a significant step in creating more availability and removing road blocks in the obtaining of mortgage credit in the condo market.
The NAR and their nearly 140,000 members have been lobbying Congress for quite some time to encourage the passing of this legislation. The Association applauded the unanimous House vote back in February and was ecstatic upon the final approval by the Senate in mid-July.
NAR President, Tom Salomone was quoted expressing his relief in knowing that condo owners will now have fewer restrictions on obtaining FHA financing.
This bill will make the Federal Housing Administration’s process for re-certification less cumbersome and it also lowered the owner occupancy requirement rate from 50% down to 35%. The FHA will also be revamping its transfer fee policy it currently has in place. The new model will be far less restrictive and more in line with the current Federal Housing Finance Agency’s guidelines.
Finally, some relief is on the way for those in the condo market who have seen increased pressure brought on by rising prices, restrictive lending guidelines, and low inventories, Salomone went on to say.
This piece of legislation has done its job by removing the barriers of strict lending guidelines and putting the dream of home ownership back into the hands of deserving Americans.
Refinance numbers have launched up above the peak of 2012. Today, there appear to be more than 8.7 million refi candidates in the market. This seems to be the result of the U.S. Treasury bond market which has seen a significant bump as investors shifted their interest after Brexit.
Even though refinance rates have only dropped by 15 basis points, it appears that was enough to inflate the market with an additional 1.3 million borrowers. This means that there are more people in the market today then there were when mortgage rates hit rock bottom in 2015.
In South Florida, it appears the difference is equating to an uptick of 30% versus last year’s numbers.
Other experts do not believe it has anything to do with Brexit, but it is a result of limited housing inventory with low-interest rates. This is causing an increase in home prices. As millennials are searching for homes, and baby boomers are downsizing into well-appointed homes or condos at higher price points.
Homes are selling in a matter of days, and often over the listing price. This rise in values will show an increase in equity for those staying put. Add to the fact that credit scores are starting to improve and you have more qualified homeowners with the ability to refinance their homes.
It would appear that this is a perfect mixture to keep the refi market on fire and moving forward.
https://elitetitleagencyfl.com/wp-content/uploads/2013/04/photodune-2542801-miami-luxury-house-m2800400.jpg400800support_8dbahttp://elitetitleagencyfl.com/wp-content/uploads/2019/04/elite-title-400x248.pngsupport_8dba2016-11-11 20:47:022016-11-11 20:47:02Refi Season is Red Hot
The U.S. consumer watchdog’s structure has been deemed unconstitutional by the U.S. Appeals Court. The court pointed out that too much power was put into the hands of one agency director.
The Consumer Financial Protection Bureau, or CFPB, has been under fire since its creation following the financial crisis of 2008-2009. The Court went on to say that it is unconstitutional to limit the power of The President of the United States by not allowing him to remove an agency director.
The law creating this independent agency stated that the director’s removal could only be for cause and not over political differences. This conflicted the constitution, which says the president can remove a person for any reason.
The federal government disagreed with the court decision saying it was constitutional.
Richard Cordray, a Democrat, has been on top of the agency since it began in 2011. His term does not end until 2018, so his reign likely will not be affected unless Donald Trump were to become president.
The case, which brought about this decision, involved allegations that a mortgage lender in New Jersey was receiving illegal kickbacks from mortgage insurance company referrals. The CFPB ordered the company to pay back the ill-gotten funds, and the company challenged the bureau’s structure and believed their actions to be legal.
“The Bureau respectfully disagrees with the court’s decision,” CFPB spokeswoman Moira Vahey communicated in her statement. “The Bureau believes that Congress’ decision to make the director removable only for cause is consistent with Supreme Court precedent, and the Bureau is considering options for seeking further review of the court’s decision.”
It is no secret that China is the second largest economy in the world, but what many in South Florida are finding out is that they are using their resources to purchase property in the area. For many years realtors have been dreaming of tapping into this almost endless resource. Finally, it seems to be becoming a reality.
Recently, large real estate brokerage firms have put together large groups of high-end Chinese investors to tour the South Florida real estate market. Whether it is the unique architecture or the tropical climate, these investors were showing tremendous interest and sales followed.
The Miami-Dade Chamber of Commerce launched an Asia task force with the sole purpose of shrinking the distance between China and Miami-Dade. The success of this initiative rests heavily on going overseas and putting together these “tours” to stir up demand.
China purchased more real estate in the US than any other country between April 2015 and March 2016. Unfortunately, Miami-Dade only saw 2% of its business coming from China. Although, 2016 has seen Chinese investors spending hold steady.
Many look to the expansion of the Panama Canal and increased shipping to the South Florida ports as a reason the demand has been firm. At the same time, there have been some increase investments in local businesses and commercial real estate being financed from China. Coincidence? Maybe not.
Either way, the South Florida marketplace is hoping the trend continues and the flow of the lucrative Chinese real estate buyers climbs higher each year.
https://elitetitleagencyfl.com/wp-content/uploads/2016/10/Condos.jpg10241024support_8dbahttp://elitetitleagencyfl.com/wp-content/uploads/2019/04/elite-title-400x248.pngsupport_8dba2016-10-14 13:00:192016-10-13 21:56:56The Chinese Buyer
US Treasury department has been busy since launching its newest anti-money laundering campaign. This time, the press has been on shutting down illegal funds entering the country from foreign investors. These investors, usually purchasing property in excess to 2 million, come from countries such as China and those in the Middle East.
The process is simple. These individuals run money through foreign companies who open accounts in the Caymans with the said funds and then purchase property here in the states. The crackdown started in New York and Miami but has quickly expanded to Los Angeles.
This new campaign puts a new responsibility on more than just the title attorney. Those who need to pay attention are the real estate agents, bankers and the attorneys involved in any of the transactions dealings. They are responsible for knowing where the buyer’s funds originated. This is an often overlooked task, but one in which they will be held more accountable. Potential criminal charges are at stake if found to be a part of the money laundering scheme.
No one knows for sure what the long-term impact of this new Department campaign will be, but in the short-term, the high-end market has softened. There has also been a slowdown in the influx of foreign real estate investors. This might just be the results of Brexit or the fact that countries have been trying to curtail the outflow of money on their end.
Although it might be too early to tell, one thing is for sure, the US Treasury Department is coming down harder than ever on money laundering, and all members of the seller’s team must be part of the solution.
http://elitetitleagencyfl.com/wp-content/uploads/2019/04/elite-title-400x248.png00support_8dbahttp://elitetitleagencyfl.com/wp-content/uploads/2019/04/elite-title-400x248.pngsupport_8dba2016-09-29 16:04:252016-09-29 16:04:25The Complications Of Foreign All Cash Deals
First Time Home Buyers Are Being Targeted
UncategorizedFor many years, it has seemed that new home builders were ignoring first time home buyers to focus on the most lucrative demographics in the middle to high-end home market. The housing market had made it apparent that in this post-recession time that prices are rising quickly and first time home buyers have been priced out.
Well, that seems to be a thing of the past. Not that the market is not seeing tremendous upside growth, but that home builders might be changing their target.
By spending years building homes for those with easy access to funds, less credit restraint, and high-end tastes they have created enough homes to meet demand while creating a shortage of smaller, more affordable homes. Reports are apparently shedding light on the fact that sales of medium size, single-family home sales have decreased up to 70%, while homes under $200,000 have increased dramatically.
As one would expect from any keen business person, one should follow supply and demand.
Statistics show that the job market has produced more income and the demand for home buying is there. Couple that with the fact that the number of sales units are decreasing and it becomes clear that the buyers are not willing or able to afford the larger, higher priced homes that have quickly become available via new home builds focused on the medium to higher end buyers.
Smart money follows the trends. The smaller, single family new homes market has been ignored for too long. It is time to build and profit from the clear demand of this overlooked market segment.
President Obama Eases FHA Concerns
UncategorizedH.R. 3700 is now law. The Housing Opportunity Through Modernization Act was activated by the signature of President Obama back in July 2016. The National Association of Realtors (NAR) has lauded this bill as a significant step in creating more availability and removing road blocks in the obtaining of mortgage credit in the condo market.
The NAR and their nearly 140,000 members have been lobbying Congress for quite some time to encourage the passing of this legislation. The Association applauded the unanimous House vote back in February and was ecstatic upon the final approval by the Senate in mid-July.
NAR President, Tom Salomone was quoted expressing his relief in knowing that condo owners will now have fewer restrictions on obtaining FHA financing.
This bill will make the Federal Housing Administration’s process for re-certification less cumbersome and it also lowered the owner occupancy requirement rate from 50% down to 35%. The FHA will also be revamping its transfer fee policy it currently has in place. The new model will be far less restrictive and more in line with the current Federal Housing Finance Agency’s guidelines.
Finally, some relief is on the way for those in the condo market who have seen increased pressure brought on by rising prices, restrictive lending guidelines, and low inventories, Salomone went on to say.
This piece of legislation has done its job by removing the barriers of strict lending guidelines and putting the dream of home ownership back into the hands of deserving Americans.
Refi Season is Red Hot
UncategorizedRefinance numbers have launched up above the peak of 2012. Today, there appear to be more than 8.7 million refi candidates in the market. This seems to be the result of the U.S. Treasury bond market which has seen a significant bump as investors shifted their interest after Brexit.
Even though refinance rates have only dropped by 15 basis points, it appears that was enough to inflate the market with an additional 1.3 million borrowers. This means that there are more people in the market today then there were when mortgage rates hit rock bottom in 2015.
In South Florida, it appears the difference is equating to an uptick of 30% versus last year’s numbers.
Other experts do not believe it has anything to do with Brexit, but it is a result of limited housing inventory with low-interest rates. This is causing an increase in home prices. As millennials are searching for homes, and baby boomers are downsizing into well-appointed homes or condos at higher price points.
Homes are selling in a matter of days, and often over the listing price. This rise in values will show an increase in equity for those staying put. Add to the fact that credit scores are starting to improve and you have more qualified homeowners with the ability to refinance their homes.
It would appear that this is a perfect mixture to keep the refi market on fire and moving forward.
Consumer Financial Protection Bureau
UncategorizedCourt Deems Unconstitutional
The U.S. consumer watchdog’s structure has been deemed unconstitutional by the U.S. Appeals Court. The court pointed out that too much power was put into the hands of one agency director.
The Consumer Financial Protection Bureau, or CFPB, has been under fire since its creation following the financial crisis of 2008-2009. The Court went on to say that it is unconstitutional to limit the power of The President of the United States by not allowing him to remove an agency director.
The law creating this independent agency stated that the director’s removal could only be for cause and not over political differences. This conflicted the constitution, which says the president can remove a person for any reason.
The federal government disagreed with the court decision saying it was constitutional.
Richard Cordray, a Democrat, has been on top of the agency since it began in 2011. His term does not end until 2018, so his reign likely will not be affected unless Donald Trump were to become president.
The case, which brought about this decision, involved allegations that a mortgage lender in New Jersey was receiving illegal kickbacks from mortgage insurance company referrals. The CFPB ordered the company to pay back the ill-gotten funds, and the company challenged the bureau’s structure and believed their actions to be legal.
“The Bureau respectfully disagrees with the court’s decision,” CFPB spokeswoman Moira Vahey communicated in her statement. “The Bureau believes that Congress’ decision to make the director removable only for cause is consistent with Supreme Court precedent, and the Bureau is considering options for seeking further review of the court’s decision.”
The Chinese Buyer
UncategorizedA New Profit Center
It is no secret that China is the second largest economy in the world, but what many in South Florida are finding out is that they are using their resources to purchase property in the area. For many years realtors have been dreaming of tapping into this almost endless resource. Finally, it seems to be becoming a reality.
Recently, large real estate brokerage firms have put together large groups of high-end Chinese investors to tour the South Florida real estate market. Whether it is the unique architecture or the tropical climate, these investors were showing tremendous interest and sales followed.
The Miami-Dade Chamber of Commerce launched an Asia task force with the sole purpose of shrinking the distance between China and Miami-Dade. The success of this initiative rests heavily on going overseas and putting together these “tours” to stir up demand.
China purchased more real estate in the US than any other country between April 2015 and March 2016. Unfortunately, Miami-Dade only saw 2% of its business coming from China. Although, 2016 has seen Chinese investors spending hold steady.
Many look to the expansion of the Panama Canal and increased shipping to the South Florida ports as a reason the demand has been firm. At the same time, there have been some increase investments in local businesses and commercial real estate being financed from China. Coincidence? Maybe not.
Either way, the South Florida marketplace is hoping the trend continues and the flow of the lucrative Chinese real estate buyers climbs higher each year.
The Complications Of Foreign All Cash Deals
NewsUS Treasury department has been busy since launching its newest anti-money laundering campaign. This time, the press has been on shutting down illegal funds entering the country from foreign investors. These investors, usually purchasing property in excess to 2 million, come from countries such as China and those in the Middle East.
The process is simple. These individuals run money through foreign companies who open accounts in the Caymans with the said funds and then purchase property here in the states. The crackdown started in New York and Miami but has quickly expanded to Los Angeles.
This new campaign puts a new responsibility on more than just the title attorney. Those who need to pay attention are the real estate agents, bankers and the attorneys involved in any of the transactions dealings. They are responsible for knowing where the buyer’s funds originated. This is an often overlooked task, but one in which they will be held more accountable. Potential criminal charges are at stake if found to be a part of the money laundering scheme.
No one knows for sure what the long-term impact of this new Department campaign will be, but in the short-term, the high-end market has softened. There has also been a slowdown in the influx of foreign real estate investors. This might just be the results of Brexit or the fact that countries have been trying to curtail the outflow of money on their end.
Although it might be too early to tell, one thing is for sure, the US Treasury Department is coming down harder than ever on money laundering, and all members of the seller’s team must be part of the solution.