Tag Archives: Rent prices

If current trends persist, this year may be the first year since 2006 the housing market records an annual price increase, according to a report released Thursday by Trulia. At the current rate of change, the year could close with a 4 percent price increase. Overall, asking prices rose 2.5 percent year-over-year in September and were up 0.5 percent month-over-month. Meanwhile, rent prices not only continue to rise but also are rising faster than home prices.

The Cogsville Group, LLC picked up 94 Fannie Mae foreclosures in Chicago through the Federal Housing Finance Agency's REO Initiative. The Cogsville Group is a private equity firm based in New York with a focus on distressed sales. The FHFA said in a release that all properties purchased through the program were sold near or above market value. The 94 properties sold included 111 units, 68 of which were occupied. FHFA also stated Fannie Mae will continue with bulk sales in markets with a strong demand for rental housing and a surplus of REO properties.

No doubt, the potential of the REO to rental market has caught the attention of both individual and institutional investors. But, what is the real potential of the rental market, and how long will it continue? In a recent report authored by economist Paul Diggle, Capital Economics addressed those questions. With distressed inventory shrinking and prices rising, the research firm expects the acquisition of single-family homes to end after a few more years.

Owners of vacation rental properties reported higher occupancy rates this year compared to last summer, according to a report from HomeAway. The report found 72 percent of vacation property owners who consider summer to be their peak season saw occupancy rates at 76 percent or higher, up from 68 percent last summer.

According to the GSE's August 2012 National Housing Survey, consumers maintain a cautious but improving view of homeownership and the housing market. The average home price change expectation is 1.6 percent, mostly consistent with July's results and down from a June high of 2.0 percent. Meanwhile, 11 percent of those surveyed say home prices will go down in the next year, holding steady at the lowest level since the survey began in 2010.

Slow job creation and tight loan availability are hindering otherwise positive growth in commercial real estate, the National Association of Realtors (NAR) reported. While ""positive underlying fundamentals"" helped boost all of the major commercial real estate sectors, growth in some areas has been tempered by various issues, including job growth and shifts in demand.

A surplus of REO inventory from financial institutions, demand for single-family rentals, tight lending standards - these are just a few reasons interest has developed for securities backed by cash flows from single-family rental properties. While interest has formed for good reasons, there are still risks involved. In a recent report, Moody's Investors Service highlighted two key factors that can be used to determine credit risk for such transactions: Performance of an operator or manager and the variability of the cash flow from rentals and property dispositions.

Zillow released on Tuesday its Real Estate Market Reports for July, revealing that the company's Home Value Index hit $151,600 for the month, a 0.5 percent gain from June and a 1.2 percent increase year-over-year. Of the metro areas covered in the reports, 62 percent saw home values climb during July, with only 49 of the 167 areas posting declines.

As interest in converting REOs to rentals continues to boom, Lender Processing Services, Inc. (LPS) announced an agreement with RentRange to offer rental property income data.

CitiMortgage announced the launch of the Home Rental Program, a program designed to provide an alternative to foreclosure and allow eligible borrowers to stay in their homes. Under the program, the eligible borrower transfers ownership of the property to a vehicle established by Carrington Capital and its joint venture partner, Oaktree Capital Management, L.P. A lease will then be established for the property at a manageable monthly payment.