U.S. Federal Reserve Atlanta District Report 2012 2nd Quarter

The following is from the U.S. Federal Reserve Atlanta District Report.

Real Estate and Construction. District residential brokers indicated that home sales were flat to slightly up compared with year-ago levels. Reports indicated strong sales at the middle price points, while several brokers noted that declining inventories of foreclosed homes were limiting investor-driven sales. Brokers also reported that the decline in inventories has helped stabilize home prices in many areas. Most brokers reported that home prices were flat to slightly up compared with a year earlier. However, contacts continued to note some downward pressure on home prices resulting from low purchase offers and appraisals that were coming in well-below asking and offering prices. The sales outlook among brokers remained positive with most anticipating continued modest year-over-year home sales gains.

District homebuilders reported that new home sales and construction rose modestly compared with year-ago levels. The majority indicated that new home inventories declined further on a monthly and an annual basis. Most builders reported that new home prices were flat to slightly up compared with a year earlier. Price gains were strongest among Florida builders. Contacts noted that multi-family construction remained robust. In the near-term, homebuilders expect sales and construction to post modest gains compared with a year earlier.

Apartment sector gains drove improvements in the District’s commercial real estate markets as occupancies rose and rental rates increased. The region’s office and industrial sectors saw small improvements as vacancy rates moderated somewhat; however, reports on District retail real estate continued to be more mixed. The majority of commercial contractors said that construction activity was flat on a year-over-year basis. The majority of contacts anticipate a modest increase in private commercial construction activity through the remainder of the year, while public works projects are expected to decelerate.

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

U.S. Federal Reserve Beige Book: Atlanta District

By Editors: [bn:PRSN=3214650] Alex Tanzi on June 06, 2012 

The Federal Reserve Atlanta District last week released the April and May data that show moderate economic expansion.

Summary:

Reports from Sixth District business contacts indicated that economic activity continued to expand at a moderate pace in April and May. Reports were somewhat more positive than the previous report, and expectations remained generally optimistic across most sectors. However, uncertainties surrounding the potential impact of developments in Europe weighed on the outlook

Key Excerpts:

Real Estate and Construction. The majority of residential brokers said that home sales exceeded year-ago levels in April and May with many reporting that sales exceeded expectations. Strengthening sales, mostly from cash buyers and investors, were noted by most Florida contacts. Brokers observed that inventory levels across the District continued to decline. The majority of contacts reported that home prices were flat to slightly up on a year-over-year basis. The sales outlook among brokers remained positive with most anticipating year-over-year gains, albeit from very low levels of overall activity, over the next several months.

Banking and Finance. Lending standards remained largely unchanged since the last report, but banking contacts indicated that more applicants were qualifying for loans. Most District bankers commented that demand for refinancing mortgage loans continued to increase; more applicants had ample cash for down payments or enough equity in their homes to meet the loan requirements. Credit availability increased and competition among lenders for loans remained strong. Some bankers mentioned improvements in the general creditworthiness of borrowers and appraisal valuations.


Read the full article at U.S. Federal Reserve Beige Book: Atlanta District

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

Multiple Signs Point to Real Estate Rebound

RISMEDIA, Friday, November 25, 2011—

Summary- The past few weeks have showcased numerous signals that the real estate market is on the rise. Recently, we have reported statistics pointing to an industry turnaround, including a 15 percent rise in housing starts in September; a surge in builder confidence in October, an increase in mortgage applications and a slew of regional market improvements across the country.
A recent Marketwatch story written by Amy Hoak points out that housing markets in the Great Plains, including those in North and South Dakota, Texas, Wyoming, Nebraska, Louisiana and Iowa, are showing the most signs of strength these days, according to a recent report from Veros, a risk management and valuation services firm.

Hoak notes that Bismarck, North Dakota., is expected to be the strongest market in the country in the year ahead, with housing values appreciating at a 5.6% clip, according to Veros. Other markets projected to be among the strongest in the year ahead include Honolulu; Fargo, North Dakota.; Harrisburg/Carlisle, Pennsylvania; and Pittsburgh. Washington, D.C., and Boston remain strong city markets.

Hoak writes that while not many markets are fully rebounding, at least a good number of them likely won't see values fall at quite as rapid a pace as in recent years, according to the report.

"Overall, the recovery in the housing market is limited to just a few markets and is taking a long time to occur. The encouraging news is that many markets are no longer expected to be rapidly declining," says Eric Fox, vice president of statistical and economic modeling for Veros.

The weakest U.S. markets are in Nevada, inland areas of California, Washington and Oregon, according to the report. The weakest market in the year ahead: Bakersfield, California, where foreclosures have been a huge problem.

Hoak wraps up the story with words of assurance; While prices aren't on the upswing in many places, at least they're not expected to fall that rapidly in the coming year.

The full article can be read at Multiple Signs Point to Real Estate

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

5 Real Estate Trends to Watch for

RISMEDIA, Thursday, September 22, 2011— If the housing market were human, it would look like it just wrestled a few alligators after running an obstacle course through a snake pit.

The market is beaten and bruised, but still emerging from the recession, which is why Greg Rand, a real estate veteran and author of Crash Boom! from Career Press, wants people to know about five new trends that could help them beat the housing blues.

"The market is made up of buyers and sellers," Rand says. "It's just people who are trying to figure out how to buy low and sell high. The secret to making sure your real estate doesn't turn into a money pit is to watch the trends so you can predict where the prices will rise and where they won't."

Rand's five trends to watch include:

Short-Term Pain - Show me a market where home prices are back to 2002 levels, and I will show you a market that is overcorrecting.

Overdevelopment - One of the reasons the market is overcorrecting is overdevelopment and speculation, as is the case in Florida. Another reason is that the job base has eroded, like in Detroit. Isolated, explainable, short-term distress is the secret. Find your Florida.

Jobs, Jobs, Jobs - Track employment trends to see where companies are moving, and you will see a harbinger for long-term housing demand.

Lifestyle - Nothing drives migration patterns long-term more than the pursuit of happiness. Look at climate (the Carolinas), leisure trends (Colorado) and cost of living (Texas) for triggers on where the market may shift.

Responsible Government - Look at the state government. Does the state and city in question reward or punish risk-takers? Are you likely to suffer if you succeed there? If so, find somewhere that appreciates entrepreneurs. There's nothing worse than putting your money on the table, only to have it redistributed.

Greg Rand is the CEO of OwnAmerica, a regular Fox TV news contributor, host of Rand on Real Estate on 77 WABC Radio, popular media commentator and author of Crash Boom! from Career Press.
A. Joseph Marshall
Commercial Real Estate agent
Savannah, Ga.