Market Trends and Condition

Younger Buyers Buying Retirement Real Estate

No, they’re not buying for themselves, but instead for investment. The average age of buyers in some of the largest Florida retirement communities has been dropping. One reason is that there have been distressed and foreclosure bargains that created value. Buying before actual retirement and having their future home in place is appealing to many buyers.

However, though you have to be 55 or older to live in many of them, you can buy one if you’re younger and rent to an older individual. Young buyers with the money are finding this to be a great investment play, as their tenants are generally stable and pay their rent.

Home Prices Biggest Rise Since the Bubble Burst

The Federal Housing Finance Agency has launched a new loan modification program for Freddie Mac and Fannie Mae loans. It is called the Streamlined Modification Initiative. This program is placed in the hands of the lenders allowing them to be proactive in helping borrowers obtain mortgage relief.

The program begins June 1, 2013 and will remain active until August 2015. It is available for borrowers on Freddie and Fannie loans who are 90 days or more delinquent on their mortgage.

http://money.cnn.com/2013/04/02/news/companies/fannie-mae-record-profit/...

Whether you're looking to buy and hold or you want to wholesale, you need to be aware of the market conditions throught the U.S.

Money.CNN.com wrote an article that highlighted the top 10 cities that are better for buying or for renting.

San Francisco
Buy or rent?: Rent
After 3 years: Buyers pay 28% more

New York
Buy or rent?: Rent
After 3 years: Buyers pay 11% more

Los Angeles
Buy or rent?: Buy
After 3 years: Buyers save 3%

Boston
Buy or rent?: Buy
After 3 years: Buyers save 10%

Washington D.C.
Buy or rent?: Buy
After 3 years: Buyers save 12%

Seattle
Buy or rent?: Buy
After 3 years: Buyers save 14%

Chicago
Buy or rent?: Buy
After 3 years: Buyers save 33%

Houston
Buy or rent?: Buy
After 3 years: Buyers save 33%

Atlanta

Upbeat reports of economic improvement, housing recovery, and jobs creation have created some upward pressure on mortgage rates. Rates had been holding steady since the first of the year, but they’re starting to edge upward with recent economic news.

When major investors see improvement, they tend to lose some of their previous interest in Mortgage Backed Securities (MBS). The Federal Reserve is stepping in as the buyer of MBS at a current $40 billion per month pace. While the Fed is expected to continue its “quantitative easing” program for the time being, economists at Fannie Mae are predicting that rates on 30-year fixed rate mortgages could be headed above 4 percent this year.

It seems that those who have money are again looking at putting some of it into real estate. Pricey homes are getting a lot of attention, and prices are rising right along with that attention and greater sales volume.

A survey of upper end areas across the country showed that sales of properties between $750,000 and $1 million are up 38.7 percent over a year ago. Properties over $1 million in value are selling at a rate 25.7 percent higher year-over-year. Part of this resurgence in luxury real estate sales volume is due to a return of the jumbo mortgage, those loans over $417,000 and too big to qualify for purchase by Fannie Mae and Freddie Mac.

When an investor buys a property, rehabs it, puts a renter in place & has a property manger overseeing the tenant & property & sells it … this is referred to as a “turn-key” property.

Well, numbers are now showing that overseas investors are congregating to Memphis, TN to buy these deals!!! For years, reports have shown that Florida has been the number one state for Canadian & oversea investors …. Even though this is still true, I was very surprised to have read an article in Innman News, written by Steve Bergsman where he goes into details about this new market.

As I have done my due diligence to locate properties in Memphis, I’ve found that single family properties

Social media is the ever changing way to invest in real estate…In today’s market there are
multiple media outlets to use … Twitter, Google Plus, Facebook, etc. But what is your
social media actually worth?

This question was proposed by Gahlord Dewald in an article he wrote for Inman News…Below is a highlight of some of his step-by-step instructions…

“Establish what you mean by "worth" or "value."
Many marketers will wimp out at this point and attempt to deflect responsibility by saying inane and unhelpful things like, "What's the value of your mother?" Don't wimp out here though. If you want to wimp out, wimp out later.

CNNMoney recently released a report showing the top 10 small cities to live.

They based this report partially from quality of life, housing prices & employment.

This is important, because both investors & renters are going to be in this cities which allows you to plan your investment strategies.

As you’re doing your due diligence to determine where you want to invest, this is a great article that goes into details as why this are cities you should
be doing your home work!

1. Carmel, IN
2. McKinney, TX
3. Eden Prairie, MN
4. Newton, MA
5. Redmond, WA
6. Irvine, CA
7. Reston, VA
8. Columbia/Ellicott City, MD
9. Overland Park, KS
10.Chapel Hill, NC

http://money.cnn.com/magazines/moneymag/best-places/2012/snapshots/PL181...

I haven't researched any threads for 2013 outlooks for future hot and or current hot markets for REI. If interested take a look here http://www.foxbusiness.com/personal-finance/2013/02/11/hot-real-estate-d...