May 2011 U.S. Economic Fundamentals

[Ally]

Foreclosures account for 28% of real estate sales in Q1




Foreclosure sales accounted for 28 percent of U.S. home sales in the first quarter, with those properties selling for nearly 27 percent less, on average, than homes not in the foreclosure process, data aggregator RealtyTrac said in a report released today.




A total of 158,434 U.S. residential properties either owned by banks or in some stage of foreclosure sold to third parties in the first quarter, a decrease of 16 percent from fourth-quarter 2010 and a decrease of nearly 36 percent from first-quarter 2010, RealtyTrac said.




Properties in some stage of foreclosure -- default, scheduled for auction or bank-owned (REO) -- had an average sales price of $168,321, down 1.9 percent from fourth-quarter 2010 and down 1.5 percent from first-quarter 2010, RealtyTrac said. The 27 percent foreclosure discount for the first quarter was unchanged quarter-to-quarter, and up slightly from a 26 percent discount in first-quarter 2010.





Read the full article here.

 

[Ally]

U.S. pending home sales falls





The number of people who signed contracts to buy homes in the U.S. fell sharply in April, hitting its lowest point since fall and renewing fears that a recovery in the housing market is far off.




The National Association of Realtors says its index of sales agreements for previously occupied homes sank 11.6 per cent last month to a reading of 81.9.





Read the full article here.

 

[Ally]

Heat-seaking buyers snap up Arizona deals





Snowbirds are flocking to the warmth of Arizona in ever-increasing numbers, anxious to find themselves a bargainpriced winter nest.




The Valley of the Sun, with Greater Phoenix as its hub, has always been a popular seasonal retreat for Canadians wanting to escape the vagaries of winter, but the high Canadian dollar coupled with generally depressed U.S. housing markets has hatched another wave of buyers.




Armed with the required documentation from their lenders, Canadians are snapping up properties that in some instances are priced at 50 per cent of their 2005 peak.




Read the full article here.

 

[Ally]

Americans voting against best interests




To find most of the blame for America`s unsustainable fiscal situation one need go no further than George Bush`s presidency.




The Bush tax cuts of 2001 and 2003 for higher income Americans have totaled US$2.9 trillion, according to the non-partisan Congressional Research Service. This includes mortgage interest deductibility for two residences of up to $1 million apiece.




The two Bush wars, Afghanistan and Iraq, have cost at least US$1-trillion. And the bailout caused by non-regulation of Wall Street and mortgage brokers cost trillions more.






So why did American voters this fall hand over control of the House of Representatives to Republicans and Tea Party representatives? Why would Americans remain unperturbed about the shifting of the tax burden from high-income to low-income? Why are there no protests demanding military budget cuts?





Read the full article here.

 

[Ally]

American taxes vary with how home is used




Before purchasing a property in the United States, Canadians should research ownership and tax particularities south of the border.




`People need to determine if they`re going to own the property as their second home or if they`re going to buy it to fix up and sell,` says Dale Walters, an American tax accountant from Keats, Connelly & Associates, LLC, with expertise in U.S. and Canadian tax and financial planning.







`If people are buying it for themselves to use, they should own it in their name, or jointly with their partner. But if they`re buying it just to fix up and resell, or as a rental property, they should place the property in some kind of holding entity.`




Doing so protects owners from liability, he says.





Read the full article here.

 

[Ally]

Inspect the area as well as structure




When Shannon Moore crosses the threshold of each of the 70 Florida homes she inspects weekly between Tampa and Naples on behalf of foreign buyers, a property needs to pass her unique smell test.




`I literally start by taking a good whiff,` Ms. Moore says. A distinctive burnt-firecracker odour tells Ms. Moore, owner of Green Lion Realty in Port Charlotte, that a home for sale was likely among the 100,000 or so built or renovated from 2004 to 2007 in the southern U.S. using sulphurous `Chinese drywall,` a toxic, corrosive substance that turns a bargain listing into a worthless white elephant.







It`s a reminder never to make a decision based on low price alone. Veteran realtors like Ms. Moore advise a detailed, step-by-step approach to evaluating deals. `Air conditioning, electrical and plumbing systems will be toast. You can have trouble breathing, and MLS may not tell you about any of that,` says Ms. Moore.





Read the full article here.

 

[Ally]

Second-hom purchases require judicious parsing




There may be no better time to go cross-border shopping. Consumer unease over Standard & Poor`s veiled warning in April that the United States may lose its prized Triple-A credit rating because of rising debt will likely contribute to holding home prices down, says Phil Soper, CEO of Royal LePage ` even as prices fell to new lows in 11 U.S. cities this winter, including overbuilt areas of Florida and Arizona, according to the S&P/Case-Shiller Home Price Index.




Washington, D.C., was the only market in which prices rose in February, according to the widely followed index. And market researcher Metrostudy reported the median home price in Florida alone was $121,900 in February, down 53% from June 2006.







Short-term opportunity aside, many recommend as a general rule sacrificing a home`s size and amenities to get a better location.





Read hte full aritcle here.

 

[Ally]

70% of buyers from the GTA purchase between Clearwater and Naples




`It`s sunny, 88 degrees and everyone here is wearing short sleeve shirts ` as we do most of the time,` says Gary Verwilt, president of the Realtor Association of Greater Fort Myers and the Beach from his office in Fort Myers, Fla., on a decidedly grey, cold spring day in Toronto.




He describes some of the enticements that have attracted Canadians to southwest Florida for the past three decades: World-class white sand beaches, 1,000-plus golf courses, professional sports teams, year-round sunshine, a vibrant arts and music scene, eco tourism, cycling, riding, boating ` `We have it all,` he says. `I get up in the morning go out to my lanai and I say, `This can`t get any better.` That`s the way we live here.`







It`s a way of life that has become exceedingly affordable for Canadians since the air came out of the swollen Florida real estate market ` particularly as the Canadian dollar maintains strength. And many are taking advantage. In fact, Canadians are by far the largest foreign buyers of property in Florida, accounting for approximately one-third of all purchases. Last year, close to 10% of all sales in Florida were made to Canadians.





Read the full article here.

 

[Ally]

20 questions to ask anyone foolish enough to believe the economic crisis is over





If you listen to Ben Bernanke, Barack Obama and the mainstream media long enough, and if you didn't know any better, you might be tempted to think that the economic crisis is long gone and that we are in the midst of a burgeoning economic recovery.






Unfortunately, the truth is that the economic crisis is far from over. In 2010, more homes were repossessed than ever before, more Americans were on food stamps than ever before and a smaller percentage of American men had jobs than ever before.






Read the full article here.

 

[Ally]

Grim outlook for U.S. housing market




With grim figures from the the S&P/Case-Shiller Home Price indicator Tuesday, analysts say the U.S. housing market is double-dipping and still `deeply mired in recession.`




The index, which measures prices for single-family homes in 20 major U.S. cities, was down for the ninth straight month in March, dropping by 0.2% on a seasonally adjusted basis. Prices fell 3.6% year over year, topping expectations for a decline of 3.3%.




`The year on year decline, the largest since November 2009, leaves the index at its lowest level since 2003, confirming other signs the housing sector is still deeply mired in recession, with a wave of foreclosed property sales likely to weigh further on prices in coming months,` said Peter Buchanan, a senior economist at CIBC World Markets.





Read the full article here.

 

[Ally]

A look at Case-Shiller, by Metro Area




Below, see data from the 20 metro areas Case-Shiller tracks, sortable by name, level, monthly change and year-over-year change -- just click the column headers to re-sort. The Case Shiller indices have a base value of 100 in January 2000. So a current index value of 150 translates to a 50% appreciation rate since January 2000 for a typical home located within the metro market.





Read the full article here.

 

[Ally]

Top U.S. markets




Three thousand miles away, the nation`s capital is attracting renewed investor interest from around the globe, spurring increased real estate sales in the region, says John Germano, executive managing director, CBRE Washington-Baltimore region. "People can invest anywhere in the world. Now they want to come to Washington, D.C.," he says. "Investor interest is not only strong in D.C.`s central business district, but also along the Beltway, and even outside the Beltway."




Farther north, New York City is experiencing recovering and improving markets in both the residential and retail sectors, says Brian L.P. Fallon, partner at O`Connor Capital Partners of New York City. "Clearly, there has been considerable stabilization and recovery in the financial services sector, which is particularly good for the New York City market," says Fallon. "It`s been a difficult three years throughout the markets. We are optimistic and organized around strategic investments around the country."




Real estate entrepreneurs, developers, architects, and financial executives from around the country say they are seeing increasing signs of a thaw in the real estate sector. Real estate activity is increasing in New York City, Seattle, Boston, Washington, D.C., San Francisco, and Denver, all of which rank among the top ten U.S. markets to watch, according to Emerging Trends in Real Estate[sup]Â[/sup] 2011, a survey of more than 1,000 leading real estate experts published by ­PricewaterhouseCoopers and ULI.





Read the full article here.

 

[Ally]

Comparing wages across the U.S.




For employees in most occupations, it pays to work on the coast.




Those working in metro areas scattered along the East and West coasts ` San Jose, New York, Seattle ` tended to get paid better last year than their middle-America counterparts, according to the Labor Department`s report comparing occupational pay in 77 metro areas, released Wednesday. Employees in the heartland and in certain southern metro areas, such as Lincoln, Neb., and Tallahassee, Fla., earned the least. (See a full-size interactive map.)




Those working in the San Jose-San Francisco-Oakland, Calif., metro were the best paid. They earned 20% more than the average American worker last year. Employees in every major field there ` from sales to construction ` raked in above-average wages in 2010.





Read the full article here.