Boston Luxury Residential

The Present Foreclosure Mess Leaves Many Buyers in Limbo

C.H. NAAMAD (Boston Luxury Residential) — Mon, 29 Nov 2010 15:29:34 -0800

An increasing number of buyers of foreclosed homes are finding that they can’t close on the property because the foreclosure — and the sale — is derailed by a problem with the foreclosure paperwork.

“Many of these transactions will probably never close,” said Greg Rokeh, a manager of bank-owned real estate in Longwood, Fla., for Watson Realty Corp.

Rokeh said he has about 25 pending sales that are tied up in the document reviews. He predicts that most of buyers will give up and purchase a different property.

“We understand it is a huge inconvenience to buyers,” Freddie Mac spokesman Brad German said.

Source: Bloomberg

C.H. (Chouaib) Naamad
Broker
Boston Luxury Residential Group
138 Newbury St.
Boston, MA 02116
617-407-9740
ch@warrenre.com

C.H. Naamad
Broker
Boston Luxury Residential
BostonLuxuryResidential.com
ch@blrboston.com
Cell: 617-407-9740

“If you have any questions about Boston real estate, or desire more information about a property, please contact Boston Luxury Residential: C.H. Naamad: 617-407-9740, or email @ ch@blrboston.com to begin working for you.”

Mortgage Bankers Association: Home Purchase Mortgages Buoy Applications

C.H. NAAMAD (Boston Luxury Residential) — Wed, 24 Nov 2010 12:53:56 -0800

Nationwide mortgage applications for home purchases rose to their highest level in more than six months last week, buoying activity otherwise weighed down by waning refinancing, an industry group reported on Wednesday.

The Mortgage Bankers Association's (MBA) seasonally adjusted purchase applications index jumped 14.4 percent to 205 in the week ended Nov. 19, the highest since the week ending May 7, the MBA said on Wednesday. The refinancing index slumped 1 percent to 3,793.6.

The composite index, which includes loans for home purchases and refinancings, increased 2.1 percent to 728.8, the MBA said.

"The increase in purchase applications last week aligns with other incoming data suggesting that consumers are feeling somewhat more confident with their financial situation," Michael Fratantoni, the MBA's vice president of research and economics, said in a statement.

Borrowing costs on 30-year fixed-rate mortgages rose to 4.5 percent from 4.46 percent in the week, the MBA said. The rate last month reached 4.21 percent, the lowest level in the survey, which has been conducted weekly since 1990.

Rates for fixed 15-year mortgages averaged 3.83 percent, down from 3.87 percent in the previous week. (Reuter)

C.H. Naamad
Broker
Boston Luxury Residential
BostonLuxuryResidential.com
ch@blrboston.com
Cell: 617-407-9740

Red Sox Pitcher Lackey Buys $2M Home In Boston's Back Bay

C.H. NAAMAD (Boston Luxury Residential) — Mon, 22 Nov 2010 12:30:17 -0800

Boston Red Sox pitcher John Lackey, and his wife Krista, have purchased a condominium at 334 Beacon St. in Boston for $2.05 million.

The two-bedroom, one-bathroom condo was last assessed for $304,700, according to The Warren Group, publisher of Banker & Tradesman. The home was purchased from David and Robin Kimball.

Lackey signed a five-year, $82.5 million contract last year to pitch for the Red Sox.

C.H. Naamad

Broker

Boston,

Back Bay

02116

617-407-9740 or CH@warrenre.com

C.H. Naamad
Broker
Boston Luxury Residential
BostonLuxuryResidential.com
ch@blrboston.com
Cell: 617-407-9740

The Long Process of Foreclosure Gets Longer

C.H. NAAMAD (Boston Luxury Residential) — Fri, 19 Nov 2010 15:30:28 -0800

The foreclosure process is getting longer and longer. According to statistics from LPS Applied Analytics:

· Delinquent loans in five judicial-process states spend more than 500 days in the foreclosure pipeline with the average time in process at 358 days, a week short of a full year.
· In the case of loans where the borrower is delinquent for 90 days or more, on average no payments have been made for 16 months.
· States that take the longest time to process delinquent loans are Florida and New York among the judicial process states, and Maryland, California, Virginia, Nevada, Massachusetts, Rhode Island, and Arizona, among the non-judicial states.

Source: Bankrate.com

C.H. Naamad
Broker
Boston Luxury Residential
BostonLuxuryResidential.com
ch@blrboston.com
Cell: 617-407-9740

Home > Blogs > Massachusetts > Suffolk County > Boston > BRA To Filene’s Developers: Start Over Or Move On! Success! DONE 6,010 views C.H. Naamad's Blog C.H. Naamad By C.H. Naamad | Agent in 02116 BRA To Filene’s Developers: Start Over Or Move On!

C.H. NAAMAD (Boston Luxury Residential) — Thu, 18 Nov 2010 12:47:01 -0800

The owners of the former Filene's site in Boston's Downtown Crossing will need to submit a new project proposal if they plan to build anything on the blighted street corner.

Frustrated by the lack of progress at the site, the Boston Redevelopment Authority (BRA) issued a letter today to Boston Global Investors' John Hynes and Vornado Realty Trust's Steven Roth, the project's main developers, saying the original project notification form is null and void. The action comes after various local groups said the lack of project progress continues to negatively affect the area.

It's been three years since the BRA issued a building permit to the team of Hynes and Roth, and no progress has been made to fill the gaping maw in the ground where the storied department store once stood.

According to the BRA's letter to the developers, the stop sign Hynes and Roth have placed in front of the One Franklin project have cost the city more than $20 million in new tax revenue, approximately 672 construction jobs and more than 2,700 permanent jobs.

"We know they have their feelers out for [selling the site]," said Jessica Shumaker, spokesperson for the BRA. "Our goal is to get the project going again, whether it's them going through the Article 80 process [large project review process] again or it's them selling it."

The development team has been looking at variations of the original proposal to see what could be financed in the current economic climate. Shumaker said other developers have approached the BRA and said anecdotally that they'd be interested in the property, but no official proposals have been made.

In a stinging conclusion to the letter, BRA Director John F. Palmieri indicated that perhaps it was time for the current development team to step away from the project.

"Recent reports in the media indicate that a broker is now marketing the One Franklin property," Palmieri wrote. "It is my sincere hope that this represents a genuine effort to identify an experienced and capable developer who is dedicated to bringing new economic life to Downtown Crossing and the city of Boston."

B&T

C.H. Naamad
Broker
Boston Luxury Residential
BostonLuxuryResidential.com
ch@blrboston.com
Cell: 617-407-9740

Great Tips for Getting Vacant Homes Ready for Winter

C.H. NAAMAD (Boston Luxury Residential) — Wed, 17 Nov 2010 15:33:12 -0800

Houses that will sit empty through the winter need attention to avoid frozen pipes, reports Long Island American Water, which is part of American Water, the largest investor-owned U.S. water and waste water utility company.

The company offers these tips for ensuring that pipes don’t burst:

· Search for pipes that are not insulated, or that pass through unheated spaces such as crawl spaces, basements, or garages. Wrap them with pre-molded foam rubber sleeves or fiberglass insulation.
· Wrap really vulnerable pipes with electric heating tape with a built-in thermostat that only turns heat on when needed.
· Seal cracks and holes in outside walls and foundations with caulking to keep cold wind from pipes. Look for areas where cable TV or phone lines enter the house, to be sure holes are tightly sealed.
· If hot-water radiators heat the home, bleed the valves by opening them slightly. Close them when water appears.
· Before really cold weather sets in, make certain that the water to outdoor hose bibs is shut off inside the house and the lines are drained.
· Drain any hoses and air conditioner pipes.
· Wrap the water heater or turn it off.
· Make sure gutters and downspouts have been cleaned to remove debris that could freeze and cause clogs during cold weather.
· Know where the main water shut-off valve is located in case it needs to be shut off during an emergency.

Source: Long Island American Water

C.H. Naamad
Broker
Boston Luxury Residential
BostonLuxuryResidential.com
ch@blrboston.com
Cell: 617-407-9740

Are Auctions the Cure to the Real Estate Market problems?

C.H. NAAMAD (Boston Luxury Residential) — Tue, 16 Nov 2010 14:58:42 -0800

I have been to a few auctions in the last few months. How people behaved was very surprising. The myth that there are no buyers out there is just a myth. Nowhere else have I seen so many people clamoring to scoop up what they thought were GOOD DEALS, even though the numbers DO NOT support that.
I have seen people buy at auctions at prices they would never pay otherwise. The Bryant Bay Bay Auction on November 7th, was the last example. The auction generated so much buzz that people paid the same prices if not more than they would have, had they just walked into the sales office before!! Mind you, these were One Million Plus condos.
I guess that deep rooted feeding frenzy feeling and behavior is still strong in all of us!
C.H. Naamad
Broker,
Warren Residential
138 Newbury st
Boston, MA 02116
617-407-9740
CH@warrenre.com

C.H. Naamad
Broker
Boston Luxury Residential
BostonLuxuryResidential.com
ch@blrboston.com
Cell: 617-407-9740

Foreclosure Mess Impact Could Be Worse Than Previously Thought For the RE Market

C.H. NAAMAD (Boston Luxury Residential) — Tue, 16 Nov 2010 14:27:55 -0800

Widespread problems in how the nation's lenders documented foreclosures could spark a wave of legal challenges resulting in massive losses to banks and serious new troubles for the housing market, a federal watchdog warned today.

The Congressional Oversight Panel, the overseer of the government's Wall Street bailout, in its latest report laid out a range of possible outcomes for the foreclosure paperwork mess that emerged in September.

In the best-case scenario, the watchdog said, concerns about the paperwork mess are "overblown" and banks would be able to proceed with foreclosures as soon as invalid court documents were replaced with proper paperwork.

But in the worst-case scenario, it warned that banks could face billions of dollars in losses.

Banks are accused of having used "robo-signers" to sign hundreds of foreclosure documents a day without proper review, a fiasco that reignited public anger with banks that received billions of dollars in taxpayer aid during the financial crisis.

Bank of America, Ally Financial and JPMorgan were among banks that temporarily suspended foreclosures pending internal reviews of their practices, but have since begun to resume sales of foreclosed properties.

In the worst-case scenario, the panel said banks may be unable to prove that they own the mortgage loans they claim to own, legal challenges could call into question the validity of 33 million mortgage loans -- many of which were then securitized and sold to investors -- and banks could face billions of dollars in unexpected losses.

"If such problems were to arise on a large scale, the housing market could experience even greater disruptions than have already occurred, resulting in significant harm to major financial institutions," the 125-page report said. "At present, the reach of these irregularities is unknown."

The panel, created to oversee the $700 billion bank rescue approved by Congress in 2008, also said banks could end up losing $52 billion from so-called mortgage put-backs, or loans that were sold to other investors but would have to be bought back due to problems that have turned up.
Those losses would be borne predominantly by Citigroup, JPMorgan Chase, Bank of America and Wells Fargo, the panel said.

Banks have been eager to downplay the impact of the foreclosure paperwork mess, saying evictions through foreclosure have been "materially accurate."

The banks face lawmaker scrutiny later today in hearings by the Senate Banking Committee, and then another hearing on Thursday before the House of Representatives Financial Services Committee.

A top Bank of America executive acknowledged problems in the bank's foreclosure practices in testimony prepared for the Senate hearing and said Bank of America is working to replace previously filed affidavits in as many as 102,000 pending foreclosure cases.

"Thus far, we have confirmed the basis for our foreclosure decisions has been accurate. At the same time, however, we have not found a perfect process," said BofA home loans chief Barbara Desoer in the prepared testimony.
David Lowman, chief executive for home lending at JPMorgan Chase, also laid out missteps in foreclosure paperwork and said the bank is cleaning up errors.

Both officials said their banks work closely with struggling borrowers to modify loans rather than foreclose, but lawmakers are expected to press banks on why more loan modifications have not gone forward.
Bank regulators who are probing banks' foreclosure procedures have also pushed for more modifications.

The Congressional Oversight Panel hit on loan modifications in its report, saying documentation problems could undermine Treasury's main foreclosure prevention effort, the Home Affordable Modification Program.

"Some servicers dealing with Treasury may have no legal right to initiate foreclosures, which may call into question their ability to grant modifications or to demand payments from homeowners," the report said.

The panel said Treasury should undertake an investigation into whether paperwork errors could undermine HAMP, and report back to Congress and the public. (Reuters)

C.H. Naamad
Broker
Boston Luxury Residential
BostonLuxuryResidential.com
ch@blrboston.com
Cell: 617-407-9740

Lenders Face Lawmaker Wrath Over Foreclosures

C.H. NAAMAD (Boston Luxury Residential) — Mon, 15 Nov 2010 14:31:54 -0800

Banks under fire over their foreclosure practices face twin hearings in Congress this week, at which they will come under renewed pressure to find ways to keep borrowers in their homes.

The hearings on Tuesday and Thursday will include the first appearances by executives from major lenders like Bank of America and JPMorgan Chase since the furor over sloppy foreclosure paperwork erupted in September.

Banks are accused of having used "robo-signers" to sign hundreds of foreclosure documents a day, a fiasco that has reignited public anger with banks that received billions of dollars in taxpayer aid during the financial crisis.

Lenders will be pressed on whether the paperwork problems are further evidence that modifying loans is a better alternative to eviction.

"Foreclosure should be the last option and we need to examine barriers to mortgage modifications," Democratic Sen. Tim Johnson, expected to lead the Banking Committee next year, said in an emailed response to Reuters.

Other witnesses at Tuesday's Senate Banking Committee hearing include Iowa Attorney General Tom Miller, who is leading a 50-state probe of foreclosure practices.

Miller's testimony will be closely watched. A settlement with lenders could include fines or commitments to loan modifications.

Bank of America and JPMorgan were among banks that temporarily suspended foreclosures pending internal reviews of their practices, but have since begun to resume sales of foreclosed properties.

Some lawmakers and consumer activists called in October for all lenders to institute a national moratorium on foreclosures, but they failed to gain traction due to fears it would further depress home sales and crimp economic growth.

Real estate data company RealtyTrac said the temporary suspensions by banks led to a 9 percent drop in foreclosures nationwide in October from the month prior.

Republican Representative Spencer Bachus, the front-runner to be chairman of the House Financial Services Committee next year, said the paperwork problems are "disturbing," but singled out federal regulators for criticism.

"It is disappointing that the regulators didn't catch this before the media since most of the problems in the contested foreclosure proceedings occurred at the nation's largest banks," Bachus told Reuters in an email.
The House panel's foreclosure hearing is set for Thursday.

The mortgage paperwork mess threatens to eat into bank profits by delaying sales of bank-owned properties, drawing fines from regulators, and spawning lawsuits from both homeowners and investors in mortgage-backed securities.

Some industry analysts have said a bigger cost for banks stems from investor demands that they buy back billions of dollars of mortgage bonds because they misrepresented the quality of the underlying loans.

Georgetown University law professor Adam Levitin, a witness on Tuesday, sees a fundamental danger highlighted by the sloppy paperwork. He believes the mortgage industry has failed to properly track the ownership of loans, undermining the legal standing of mortgage-backed securities.

The federal government's Home Affordable Modification Program has had limited success and banks have been reluctant to reduce the principal owed, a step that can require approval by multiple investors, and causes banks and investors to take losses.

Nevertheless, some economists and housing experts believe the time has come for lenders and mortgage investors to accept reductions in the amounts they are owed.

"It just cannot be the case that foreclosure is preferable to modification -- including reductions of principal -- for a significant proportion of mortgages where the dead-weight costs of foreclosure, including a distressed sale discount, are so high," Federal Reserve Governor Daniel Tarullo said in a speech at George Washington University law school on Friday.

The Fed and other federal banking regulators are reviewing the processes large banks have in place for foreclosures.

Congress is currently led by the Democrats, but big losses at the Nov. 2 elections mean Republicans will control the House next year while Democrats retain the Senate with a reduced majority.

That split in control could ensure legislative gridlock and minimize lawmakers' influence on the foreclosure issue.

"I have no hopes for this Congress whatsoever," said John Taylor, president of the National Community Reinvestment Coalition. Taylor said he is placing his hopes for a mortgage modification push in the state attorneys general. (Reuters)

C.H. Naamad
Broker
Boston Luxury Residential
BostonLuxuryResidential.com
ch@blrboston.com
Cell: 617-407-9740

Former Boston Symphony Orchestra Music Director Sells Newton House For $5M

C.H. NAAMAD (Boston Luxury Residential) — Fri, 12 Nov 2010 15:07:14 -0800

Seiji Ozawa, the longest-serving music director in Boston Symphony Orchestra history, has sold his Newton home for $5 million.

Ozawa, and his wife Vera, sold the 2,028-square-foot, contemporary style home at 33 Crestwood Road to Jennafer Inker late last month. The Ozawas purchased the three-bedroom, three-bathroom home with three fireplaces in 1999, according to data from The Warren Group, publisher of Banker & Tradesman.

The home at 33 Crestwood Road and two parcels of nearby land owned by the Ozawas was last assessed in fiscal 2010 for a total of about $4 million.

He served as music director of the Boston Symphony Orchestra for 29 seasons (1973-2002) - the longest-serving music director in the orchestra's history. Ozawa has performed and worked all over the world, but has several local connections including receiving honorary degrees from Harvard University, the University of Massachusetts, Wheaton College and the New England Conservatory of Music.

B&T

C.H. Naamad
Broker
Boston Luxury Residential
BostonLuxuryResidential.com
ch@blrboston.com
Cell: 617-407-9740

October Foreclosures Fall As Processing Stalls

C.H. NAAMAD (Boston Luxury Residential) — Thu, 11 Nov 2010 13:31:20 -0800

The number of homes taken over by banks nationwide fell 9 percent in October as foreclosure processing was stalled by questionable paperwork, real estate data company RealtyTrac said on Thursday.

Banks foreclosed on 93,236 properties in October, sharply lower than September's record high above 100,000 homes, RealtyTrac said. There were 332,172 total foreclosure filings in October, 4 percent lower than September and about the same level as a year earlier.

"The numbers probably would have been higher except for the fallout from the recent 'robo-signing' controversy," said James J. Saccacio, chief executive officer of RealtyTrac. Saccacio said he expects further declines in November.

The firm said Nevada, Florida and Arizona continued to post the highest foreclosure rates in the country.

And just five states - California, Florida, Michigan, Illinois and Arizona - accounted for more than half of all foreclosure activity.

One in every 79 housing units in Nevada received a foreclosure filing in October, five times more than the national average and close to double Florida's one in every 155 unit rate.

Despite the lull, the year is still expected to post record levels of foreclosure activity.

"Our guess at this point is that we'll probably see another month of some delays," said Rick Sharga, a vice president at the firm.

"We will probably still end this year with probably 1.2 million bank repossessions which would be a record," Sharga told Reuters in an interview, noting that there are close to a million bank-owned properties on the banks' books while less than a third of those are actively trying to be sold.

In 2005, before the housing bust, banks took over just about 100,000 houses, according to the Irvine, Calif.-based company.

B&T

C.H. Naamad
Broker
Boston Luxury Residential
BostonLuxuryResidential.com
ch@blrboston.com
Cell: 617-407-9740

Does Paying Cash Expedite a Deal?

C.H. NAAMAD (Boston Luxury Residential) — Wed, 10 Nov 2010 11:50:49 -0800

This is an interesting question! many people would say right away "yes", but the experts say, 'Hold on. Not that fast!'
Does paying cash for a home net the buyer a discount as it might for other transactions? The answer: “It depends.”

If the seller is in a big-time crunch, an all-cash deal can expedite the sale. Also, offering to pay cash gives the buyer less wriggle room, which could comfort a nervous seller.

A seller with minimal equity may be looking for a more generous deal than an all-cash buyer is likely to demand. Also, if there is a bank involved in the deal, it may not be so enthusiastic either because an all-cash transaction could undercut the reason banks are in business.

Source: The Wall Street Journal, June Fletcher (11/04/2010)

C.H. Naamad
Broker
Boston Luxury Residential
BostonLuxuryResidential.com
ch@blrboston.com
Cell: 617-407-9740

Tight Condo Lending Holds Markets Back and affects recovery

C.H. NAAMAD (Boston Luxury Residential) — Tue, 09 Nov 2010 13:09:37 -0800

Fix over-restrictive condo financing rules, and you’ll fix the real estate market. That was the message on Saturday from Bob Waun, a vacation-home lending specialist who spoke at the Resort and Second-Home Forum at the 2010 REALTORS® Conference & Expo in New Orleans.

Waun, who’s part of the lobbying group called the Residential Condo Finance Reform Coalition, said that because credit and financing options for condos has been scaled back in recent years, particularly by Fannie Mae, markets all over the country are suffering. It’s especially true in resort areas with a high density of condominiums.

At the root of the problem is that lenders perceive condos as too risky if the project contains mixed-use development, if it’s considered a “new” project, or if the condo will be used as a second home, among other things.

“Lenders need to have a better understanding of mixed-use,” Waun said. “If a business closes in a mixed-use building, how is that impact any different than if an Applebee’s closes down the street from a subdivision? Lenders need to use new tools to measure condo project risk.”

Prime condo buyers include baby boomers and echo boomers who value walkable neighborhoods and minimal home maintenance. If more mortgage money becomes available for condos, it will foster walkable communities and help soak up some of the condo inventory in built-up markets.

“People want proximity to restaurants and services,” Waun said. “They want to be able to walk to the movie theater and the grocery store. But if your clients don’t have the money, they won’t buy.”

Waun urged attendees to join his coalition’s call for sensible condo finance reform.

—Kelly Quigley, REALTOR® Magazine

C.H. Naamad
Broker
Boston Luxury Residential
BostonLuxuryResidential.com
ch@blrboston.com
Cell: 617-407-9740

Great Property Marketing Requires Sacrifice

C.H. NAAMAD (Boston Luxury Residential) — Mon, 08 Nov 2010 14:48:08 -0800

How do you craft a compelling marketing message that draws the perfect buyers to your listings? It’s all about the principle of sacrifice, said Laurie Moore-Moore, founder of the Institute for Luxury Home Marketing, based in Dallas.

“Don’t waste your time bringing in people who won’t buy the house,” Moore-Moore told REALTORS® on Friday during a session on how to develop a successful marketing plan for luxury properties at the NATIONAL ASSOCIATION OF REALTORS® Conference in New Orleans. “Sacrifice those people and focus on the ones who will buy.”

For example, if you’re struggling to get offers on a beautiful home because it has a miniscule backyard, create a message that targets the small pool of buyers who would see that negative feature as a selling point. The headline to use in your marketing messages: “Backyard Removed for Your Convenience.”

Or, if you can’t seem to find any positives for a condo that’s just like all the others in the building, only it looks out onto a brick wall rather than the city skyline, try a headline like “Willing to Trade View for Value?”

“Target the prospects for whom view is not an issue,” Moore-Moore said. “Sometimes the negative is your best hook—it becomes the reason to buy.”

Moore-Moore emphasized the importance of writing an interesting and descriptive headline that’s used in your printed marketing materials, your social networking communications, and possibly even on your For Sale signs. (Tip: Never use the property address as the headline!)

Once you draw the prospects in with a great headline, follow up with a story that defines the home’s lifestyle and calls out the most unique aspects of the home.

“Recognize that marketing is storytelling,” Moore-Moore said. “Ask yourself: What is different about the house that competitive homes can’t say? You have to find that special story.”

—Kelly Quigley, REALTOR® Magazine

C.H. Naamad
Broker
Boston Luxury Residential
BostonLuxuryResidential.com
ch@blrboston.com
Cell: 617-407-9740

Top 5 Most Expensive U.S. Commercial Sales

C.H. NAAMAD (Boston Luxury Residential) — Mon, 08 Nov 2010 11:35:52 -0800

As Google contemplates buying its New York City headquarters for $2 billion, AOL’s Daily Finance takes a look at the five largest commercial real estate deals in U.S. history. All of them, it turns out, are in Manhattan.

1. Stuyvesant Town: $5.3 billion
These 110 building, 14-story, rent-stabilized apartments were sold in a deal that closed right before the real estate meltdown. Since then, the buyers have turned the property back to their creditors.

2. GM Building: $2.8 billion
This is the single most expensive purchase of an individual building ever. Boston Properties, Goldman Sachs (GS), and Meraas Capital purchased it in 2008.

3. Rockefeller Center: $1.85 billion
This complex houses Radio City Music Hall, the GE Building, and the Bank of America Building. Goldman Sachs and Tishman-Speyer sold it to Lester Crown.

4. 666 5th Avenue: $1.8 billion
Its sale in January 2007 was, at that time, the most ever paid for a single office building.

5. Worldwide Plaza: $1.74 billion
Macklowe Properties bought the property in February 2007. About two-and-a-half years later, it was sold for about $600 million, a 65 percent decline in value.

Source: Daily Finance (10/03/2010)

C.H. Naamad
Broker
Boston Luxury Residential
BostonLuxuryResidential.com
ch@blrboston.com
Cell: 617-407-9740

30-Year Mortgage Rates Inch Up.

C.H. NAAMAD (Boston Luxury Residential) — Fri, 05 Nov 2010 15:28:18 -0700

Freddie Mac confirms that average interest for 30-year fixed mortgages rose for the third consecutive week, bumping up to 4.24 percent from 4.23 percent a week ago.

The average 15-year rate for the week ended Nov. 4 was 3.63 percent, a drop from 3.66 percent.

Scott Brown, chief economist at Raymond James & Associates Inc., says this week's Federal Reserve actions "aren't going to change the economy right away, but they should help keep mortgage rates low for quite some time."

C.H. Naamad
Broker
Boston Luxury Residential
BostonLuxuryResidential.com
ch@blrboston.com
Cell: 617-407-9740

The Worst Time to Sell is the Best Time to Buy!!!!Bay State Pending Home Sales Decline For Sixth Straight Month

C.H. NAAMAD (Boston Luxury Residential) — Thu, 04 Nov 2010 12:05:01 -0700

The number of single-family homes put under agreement in October was down 22 percent over the same time last year, while condominiums were down 31 percent, according to a new report from the Massachusetts Association of Realtors (MAR).

A total of 3,631 single-family homes were put under agreement in October, down from 4,652 during the same month last year. This marks the sixth straight month that year-over-year pending sales have gone down. On a month-to-month basis, single-family homes put under agreement were essentially flat, up 0.6 percent from 3,609 homes in September.

"While the uptick in pending home sales from September to October can be seen as positive and most likely driven by continued record-low interest rates, buyers still have questions about the economy," said 2010 MAR President Kevin Sears, broker/co-owner of Sears Real Estate in Springfield. "If prices continue to moderate, there is a good chance that the number of homes put under agreement will go up, as the market continues to favor the buyer."

The number of condos put under agreement in October dropped to 1,360, from 1,983 in October 2009. On a month-to-month basis, condos put under agreement were up 7.3 percent from 1,267 units in September.

Banker & Tradesman.

C.H. Naamad
Broker
Boston Luxury Residential
BostonLuxuryResidential.com
ch@blrboston.com
Cell: 617-407-9740

Your Cell Phone May Be Your Next office, Condo, or Hotel Key......

C.H. NAAMAD (Boston Luxury Residential) — Thu, 04 Nov 2010 00:00:18 -0700

Swedish hotel replaces keys with cellphones

STOCKHOLM — Visitors to a Stockholm hotel will be able to use mobile phones instead of keys to unlock the doors to their rooms.

Assa Abloy AB, the world’s largest maker of door locks, has launched a pilot in which Clarion Hotel Stockholm will lend customers mobile phones with close-range radio chips, much like devices used for payments at gas stations.

Repeat visitors during a four-month trial will be able to check in through their phones before arrival and have their phones activated as “keys.’’ They will then be able to skip the registration desk and unlock the door by holding the phone next to it.

The short-range radio technology, known as Near Field Communication, is expected to be built into smartphones in the coming years. It is also envisioned for ticketing and card payments. Assa Abloy says it wanted to test the system before expanding it to other hotels, commercial buildings, and homes.

Greger Johansson, a telecommunications analyst at research firm Redeye, said NFC is a hot technology in the mobile phone market. But he said few models have incorporated it so far, and it will take several years before it becomes widely used.

“It’s not just a matter of incorporating the technology into the phones,’’ he said. “You need someone who can read it, too. There are quite a few players involved so it will take a while until it works well.’’
AP.

C.H. Naamad
Broker
Boston Luxury Residential
BostonLuxuryResidential.com
ch@blrboston.com
Cell: 617-407-9740

Remodeling the Laundry Room Can Add Value to your Home

C.H. NAAMAD (Boston Luxury Residential) — Tue, 02 Nov 2010 11:08:19 -0700

"God is in the DETAILS". Remember this quote when you want to sell your home!!!
I have shown places where the laundry room looked like a dungeon from a horror movie. This can impact the buyer in a negative way.
Remodeling a laundry room can add a surprising amount of appeal and value to a home. Here are some key steps:

· Pick a decorating style. A laundry room doesn’t have to be institutional. Giving it personality increases appeal.
. Stay away from bright strong colors.
· Add convenience. Starting with a laundry detergent dispenser, make it easy to get the job done.
. Shelves and storage are also a plus.
· Choose a washer and dryer that are good looking, cost effective. and functional. Scrimping on the basics is false economy.

C.H. Naamad

Realtor

Warren Residential Group

Boston, ma 02116

C: 617-407-9740

CH@warrenre.com

C.H. Naamad
Broker
Boston Luxury Residential
BostonLuxuryResidential.com
ch@blrboston.com
Cell: 617-407-9740

Boston Condo contrasts: Prices downtown highest in decade, but sales are off!!

C.H. NAAMAD (Boston Luxury Residential) — Mon, 01 Nov 2010 14:01:33 -0700

The median price of a downtown Boston condominium hit a 10-year high in the third quarter while the number of sales dropped to a new low for the decade.

That’s the conclusion of a housing report set to be released today by the Boston company Listing Information Network that shows the median selling price of downtown condominiums increased 9.2 percent to $475,000 during the third quarter of 2010 compared with the same period last year.

Sales volume, meantime, sank by 24.5 percent in the third quarter compared with the same period last year. Only 677 properties sold, marking the smallest number changing hands during the third quarter over the last 10 years, according to a decadelong survey provided by the Listing Information Network. The private company tracks condos sales in 12 Boston neighborhoods, including Beacon Hill, Back Bay, and the South End. It doesn’t include the more moderately priced areas of Allston, Brighton, Mattapan, Dorchester, and Jamaica Plain.

The juxtaposition of lethargic sales and an increase in median price is an indication that many of the properties selling are in the upper end of the market, not that home values overall are on the rise, local real estate agents say.

Indeed, median prices in the luxury condo market — defined as full-service properties with valets, concierges, and other services — swelled by 16.6 percent to $680,000 in the third quarter compared with the same time last year. At the same time, sales volume fell less dramatically than the overall market — by 14.6 percent in the third quarter — with 135 units changing owners, according to the new data.

“The higher end has picked back up, which drags the median prices a bit higher,’’ said Michael DiMella, a managing partner at Charlesgate Realty Group in the Back Bay. “Buyers are being real choosy.’’

Debra Taylor Blair, president of Listing Information Network, said that the downtown market has largely held its values because of low inventory, which increases competition among buyers. There were 1,037 homes on the market in September compared with the 1,039 during the same month in 2009.

“We are not in a situation of [having a] glut of properties,’’ said Taylor Blair. “We are still in an appreciating market.’’

John Ranco, a Boston real estate agent, said that even if the number of condos for sale has not changed much since last year, buyers are finding fewer properties that they want to purchase. Many homes have been on the market for long periods of time and are overpriced, he said.

“There isn’t a great selection,’’ said Ranco. “What is out there can be very expensive and tends to sell at a higher price than you would expect in a down economy.’’

Jenifer B. McKim; The Boston Globe

C.H. Naamad
Broker
Boston Luxury Residential
BostonLuxuryResidential.com
ch@blrboston.com
Cell: 617-407-9740

Latest Report: What’s In, What’s Out With Home Design.....

C.H. NAAMAD (Boston Luxury Residential) — Fri, 29 Oct 2010 13:51:53 -0700

Coinciding with a sluggish housing market, home owners have changed their preferences about how space is used and designed in their homes. Function over extravagance has reigned in recent years, along with affordability, when it comes to home features, according to the latest American Institute of Architects Home Design Trends Survey for the second quarter of 2010.

Here are a few highlights from the report, based on nearly 300 residential architects who were surveyed about the design preferences of U.S. households.

WHAT’S IN

Home offices: More people are working out of their home or telecommuting, prompting more home owners to want a dedicated workspace in their homes.

Outdoor living areas: Home owners want to expand their living space into the outdoors and are seeking to incorporate more outdoor living elements into their lifestyles, AIA Chief Economist Kermit Baker said in a public statement about the survey.

Mud rooms: The need for additional closets and other storage space, as well as the increasing informality of space in the home, is driving more home owners to want mud rooms, according to the report.

Energy-saving features: Home owners are seeking energy efficient products and systems that will reduce their rising utility costs. Those energy efficient products and materials that have boasted the greatest increase in interest in recent months include items such as double and triple glazed windows, tankless water heaters, and low maintenance materials.

WHAT’S OUT

Media rooms/home theaters
Exercise/fitness rooms
Hobby/game rooms
Home workshops
Kid’s wings/guest wings
Interior kennels
Interior greenhouses.

By Melissa Dittmann Tracey, REALTOR® Magazine

C.H. Naamad
Broker
Boston Luxury Residential
BostonLuxuryResidential.com
ch@blrboston.com
Cell: 617-407-9740

Practitioners Responsible for Full Disclosure!!! brokers be ware!!

C.H. NAAMAD (Boston Luxury Residential) — Fri, 29 Oct 2010 13:39:02 -0700

Real estate practitioners have the same responsibility as sellers to disclose information they have that affects the “value and desirability of the property,” a California appellate court confirmed this week.

In Holmes vs. Summers, the seller and the listing associate failed to tell potential buyers about three mortgages against the property totaling $1.141 million. The sellers accepted a buyer’s offer of $749,000, but the deal fell apart because the sellers couldn’t deliver clear title.

The would-be buyers sued the real estate firm and the court found that the real estate practitioner had a greater duty to disclose facts affecting the desirability and marketability of the property than he did to protect the privacy of the seller.

Analysts say this decision will make it incumbent on practitioners with short-sale listings to provide specific information about circumstances surrounding the sales, including approvals required for the sales to close.

Source: RISMedia (10/29/2010)

C.H. Naamad
Broker
Boston Luxury Residential
BostonLuxuryResidential.com
ch@blrboston.com
Cell: 617-407-9740

New Credit Score Tailored for Lenders

C.H. NAAMAD (Boston Luxury Residential) — Thu, 28 Oct 2010 14:48:10 -0700

The three major U.S. credit reporting agencies are offering a new FICO score for prescreening, originating, and servicing home loans that better predicts the likelihood of default.

The FICO 8 Mortgage Score from Fair Isaac Corp. uses the same 300-850 scoring range but more effectively flags accounts 90 days or more past due, which corrals more risky borrowers into the lower levels.

The new product also includes additional codes that help lenders understand and explain the ratings to applicants.

Source: Inman News (10/28/10)

C.H. Naamad
Broker
Boston Luxury Residential
BostonLuxuryResidential.com
ch@blrboston.com
Cell: 617-407-9740

5 Traits of Today's Home Buyers!!!!!

C.H. NAAMAD (Boston Luxury Residential) — Wed, 27 Oct 2010 21:19:25 -0700

A survey by American Lives, a consumer research firm in California, conducted a study for the trade magazine Builder to answer that question. Here are their conclusions:

· They are young. Most are under 45. Half said they had annual household incomes of $75,000 or less. Two-thirds are married.
· They are frugal. They consistently told surveyors they were eager to live a simple lifestyle.
· They are concerned about their financial future. About 70 percent said the economy is “not so good” with 27 percent saying it was getting worse and 27 percent saying it was getting better, and two-thirds saying it would get better in a year. Some 55 percent said they were concerned that they might lose their jobs.
· They see themselves as energy efficient but not necessarily “green.” About 32 percent said they’d pay extra for energy-efficient features but only 16 percent said they’d pay extra for recycled or renewable construction materials.
· Neighborhood is important. Ninety-five percent said they thought the community was as important as the home itself. Seventy-nine percent wanted the most square footage they could afford, but 69 percent said they’d consider a smaller home in the right neighborhood.

Source: Inman News, Mary Umberger (10/27/2010)

C.H. Naamad
Broker
Boston Luxury Residential
BostonLuxuryResidential.com
ch@blrboston.com
Cell: 617-407-9740

New Home Sales Rise 6.6 Pct. After Dismal Summer.....

C.H. NAAMAD (Boston Luxury Residential) — Wed, 27 Oct 2010 12:58:43 -0700

Sales of new homes nationwide improved last month after the worst summer in nearly five decades, but not enough to lift the struggling economy.

The Commerce Department says new home sales in September grew 6.6 percent from a month earlier to a seasonally adjusted annual sales pace of 307,000. Even with the increase, the past five months have been the worst for new home sales on records dating back to 1963.

Paul Dales, U.S. economist with Capital Economics, called the September home sales encouraging. But he said it doesn't change the fact that activity remains at extremely low levels.

"That's unlikely to change for a few years," Dales said.

Most major homebuilder stocks fell after the report's release. Toll Brothers Inc. fell nearly 1 percent.

New home sales have risen 9 percent from the bottom in May but are still down 78 percent from their peak sales pace of nearly 1.4 million homes in July 2005. A healthy sales pace is around 800,000 new homes.

Builders are competing with millions of foreclosures and other distressed properties that show no signs of abating. They are unlikely to ramp up construction until those are cleared away and demand picks up.

High unemployment, tight credit and uncertainty about home prices have kept people from buying homes. Government tax credits propelled the market earlier in the year, but those expired in April.

The September sales figures were driven by a 61 percent monthly surge in the Midwest. Sales grew about 3 percent in the South and Northeast. They fell by nearly 10 percent in the West.

The median sales price was $223,800. That was up 3.3 percent from a year earlier.

The number of unsold new homes on the market fell to 204,000, the lowest since July 1968. At the current sales pace, it would take about eight months to exhaust that supply, compared with a healthy level of about six months.

The industry is suffering the fallout of a massive building boom, in which many homes were sold to speculators. They then resold the homes, often to borrowers who took out risky loans and defaulted. Those unsustainable boom times aren't coming back.

Associated Press.

C.H. Naamad
Broker
Boston Luxury Residential
BostonLuxuryResidential.com
ch@blrboston.com
Cell: 617-407-9740