Weekly State of Market

Experts predict rising interest rates, and gains in home sales.
The Salt Lake Board of Realtors® hosted its annual Housing Forecast Breakfast on Friday, Jan. 31. Lawrence Yun, chief economist of the National Association of Realtors®, was the keynote speaker. Yun described the 2013 housing market as a remarkable year in terms of home sales and price increases. However, Yun noted that the Salt Lake and national markets ended on a "weak note" with sales falling in the fourth quarter.
"In the fourth quarter it appeared that someone turned off the switch," Yun said. "National pending contracts fell substantially, almost 10 percent from November...implying possibly that the first quarter closing activity could be on the soft side."

For investors looking to get into the real estate market, one factor should be considered above all others: location, location, location.

RealtyTrac has combed the country to find 25 "hidden gem" markets — areas that are little-known, aren't swarming with big institutional investors, and boast sizeable yields.

The firm based its study on a combination of five factors: median home value (single-family, three-bedroom home), unemployment, median rental value, institutional investor sales, and gross yield.

In a recent article posted by Les Christie on CNNMoney, he addressed the transient nature of employees and how Oregon is now the number one destination among people moving from one state to another.

What does this mean to investors? MONEY! More people moving to Oregon provides multiple opportunities to make money through real estate.

It could involve any real estate strategy from wholesaling, lease options, buy fix & sell, etc.
People would rather buy a property than rent, so as Oregon is growing in population your pocket book could also grow.

You are able to create a WIN-WIN situation, where you’re investor is getting a property that matches their needs and you’re winning because you’re getting paid for your efforts.

I read an article that had some great information. In the article, it gave the top states where people are moving. this can be good to know when looking for new places to invest. the top places were:

1.Oregon
2.South Carolina
3.North Carolina
4.District of Columbia
5.South Dakota
6.Nevada
7.Texas
8.Colorado

They also gave the top states that people are moving from. They were:

1.New Jersey
2.Illinois
3.New York
4.West Virginia
5.Connecticut
6.Utah
7.Kentucky
8.Massachusetts
9.New Mexico

To read the entire article, go to:
http://www.realtor.com/news/moving-data-shows-where-americans-went-in-20...

Other articles are bearing out the current distortion of real estate markets due to cash buying and the Federal Reserve’s actions to keep the pipeline flowing to investors. In one of the latest home sales reports, 42% of homes sold went to cash buyers. No loan is involved in these sales, which definitely means these aren’t traditional buyers.
Add to this fact that there are also many investors taking advantage of low interest rates and bargain home prices by utilizing mortgages. So, we have an even higher percentage of homes going to investors who have little or no intention of selling them again for years. The market is distorted with declining home ownership but rising prices at the same time.

The housing recovery has pushed up home prices nearly everywhere. Over the past year, home prices rose in 225 of the 276 cities tracked by Clear Capital, a provider of real estate data and analysis. (See how home prices are shifting in 276 metro areas.) Prices nationwide rose by 10.9%, pushing the median price for existing homes up by $30,000, to $215,000. For people who have waited to sell their home or refinance their mortgage, that’s good news.

SEE ALSO: The Outlook for Mortgages

The nation’s housing market as a whole is recovering, but not all markets are following the same pace. In fact, some markets are recovering faster than others – and the common denominator seems to be states that have non-judicial foreclosure processes.

A look at recent data suggests that non-judicial foreclosure states are recovering faster than judicial foreclosure states. The cause is simple: more distressed properties are put back into the market in a non-judicial process than in a longer process that has to wind through backlogged court systems and take months, if not years, to resolve.

Since the housing and mortgage crash, there has been a great deal of discussion and government back-and-forth about reducing the size and influence of Fannie Mae, Freddie Mac and the Federal Reserve in the housing markets. As many may agree, a lot of talk in Washington D.C. may not mean much in the results department.

If you have a doubt about the statement that the Fed “is the housing market,” consider that since 2012 the Fed has essentially purchased all mortgage-backed securities issued. Since the U.S. market is the largest household debt market on the planet, this is crucial information. The Fed now owns roughly 12 percent of all home mortgages in the U.S.

Student property investment has long been considered one of the best ROI approaches to rental property investment. However, you won’t read anywhere that it’s easy. Investing in student housing is going to take more of your time and create a few more hassles for you. The number of students moving through universities creates a higher turnover rate than any other rental property type. This higher turnover creates some other issues for the landlord.

Using the word “engine” instead of “boom” in the title is intentional. While much of the media may like to continue the “boom and bust” discussion and the possibility of another mini-crash, it’s really more of a slowing in activity that’s been too hot over the last dozen months or so. Monthly pending home sales just took the largest monthly dip since the home buyer tax credit expiration in 2010, prompting some to predict the boom is over.