Meredith Galante | Nov. 13, 2012, 1:02 PM |
“Wake up and smell the coffee,” writes Michael Corbett, Trulia’s real estate expert and and host of NBC’s “Extra’s Mansions & Millionaires!” in his book Before you Buy! The Homebuyer’s Handbook for Today’s Market.
He’s talking about big chains such as Starbucks and Whole Foods. If you see them opening in a new neighborhood, it’s a sign that the neighborhood is up-and-coming, and therefore a smart real estate bet.
One of the best ways to stretch your buying dollar is to find a neighborhood that is in transition. Called fringe or transitional neighborhoods, they are typically close to major metropolitan areas and were once neglected and less desirable. Is there a trendy restaurant where a tattoo parlor used to be?
These neighborhoods are now beginning to enjoy a new life and your goal is the find them.
Has a Starbucks just opened on the corner or maybe a Whole Foods Market? These are all good signs that a neighborhood is on the upswing. You can bet that big chains like Starbucks spend a lot of money and time analyzing neighborhood potential before they open up a new store. So go ahead, tap into their market research and be their neighbor.
Home values fell for the first time in nine months, declining 0.1 percent from July to August, according to the Zillow’s August Real Estate Market Reports, which were released today.
But that shouldn’t be too worrisome, said Zillow Chief Economist Dr. Stan Humphries.
“Home values took a small hit in August, but this shouldn’t be cause for alarm,” he said. “The back half of the year is always softer than the front half, and this year is no exception. We’ve been encouraging folks to focus on the longer term trends and not monthly blips. Home values will rise a little and fall a little, month by month, in the near future, but we believe the overall trend will remain positive albeit still below normal rates of appreciation.”
Major markets that saw home values edge downward from July to August after experiencing prior increases included the Chicago (-0.7 percent), New York (-0.3 percent) and Boston (-0.2 percent) metros. Home values continued to climb in the Phoenix (1.6 percent) and Miami-Ft. Lauderdale (1 percent) metros, although the rate of increase was smaller in August.
On the rental side, U.S. rents continue to rise, climbing 0.2 percent month-over-month and 5.9 percent annually. For more information on August’s report, head to the Zillow Research page.
What are home values and rents doing where you live? Dive into Zillow’s data, available all the way down to ZIP code and neighborhood levels, here.
Mortgage rates for 30-year fixed mortgages fell this week, with the current rate borrowers were quoted on Zillow Mortgage Marketplace at 3.39 percent, down from 3.5 percent at this same time last week.
The 30-year fixed mortgage rate hovered between 3.4 and 3.5 percent for the majority of the week, dropping to the current rate this morning.
“This past week, rates fell back down close to the historic low level we’ve enjoyed since June following the release of the Federal Open Market Committee minutes, which suggested the Federal Reserve was more supportive of additional stimulus in the form of quantitative easing (QE3) than the market had expected,” said Erin Lantz, director of Zillow Mortgage Marketplace.
“Now that rates have returned to the low plateau where they’ve spent most of the summer, we expect rates to remain close to this equilibrium this coming week as the market awaits more significant events in the first half of September,” added Lantz.
Additionally, the 15-year fixed mortgage rate this morning was 2.76 percent, and for 5/1 ARMs, the rate was 2.38 percent.
What are the rates right now? Check Zillow Mortgage Marketplace for up-to-the-minute mortgage rates for your state.
Aug. 1, 2012
The latest Texas Quarterly Housing Report, compiled by the Real Estate Center at Texas A&M and issued by the Texas Association of REALTORS®, paints a strikingly different picture from the same time a year ago. In second quarter 2012, statewide home sales were up 13%, the median and average sales prices were up 7%, and the inventory of homes for sale was down 27% from second quarter 2011. These positive numbers give real credence to the idea that Texas continues to lead the nation in economic recovery. Why are things so different in the Lone Star State, and what can Texans expect for the rest of the year and beyond?
Read the report.
Listen to the podcast.
The 10 markets, ranked by highest share of foreign buyers, according to public records data, are:
- Lakeland-Winter Haven, Fla.
- Cape Coral-Fort Myers, Fla.
- Orlando-Kissimmee-Sanford, Fla.
- North Point-Bradenton-Sarasota, Fla.
- Miami-Fort Lauderdale-Pompano Beach, Fla.
- Phoenix-Mesa-Glendale, Ariz.
- New York County, N.Y. (Manhattan)
- Honolulu, Hawaii.
- Tampa-St. Petersburg-Clearwater, Fla.
- Las Vegas-Paradise, Nev.