Homes in some stage of foreclosure accounted for nearly one in four homes sales during the fourth quarter, according to RealtyTrac.
During the three months that ended December 31, homes that were either bank-owned or going through the foreclosure process accounted for 24% of all home sales, up from 20% in the previous quarter and down only slightly from a year earlier when foreclosures accounted for 26% of sales, RealtyTrac said.
Sunday, March 11, 2012
Monday, November 21, 2011
Investcorp Acquires Three Major Real Estate Assets in the US
Middle Eastern Investors Starting to See Value in US Real Estate
Los Angeles – Tuesday, November22, 2011 – The real estate arm of the Bahrain-based investment company, Investcorp, recently announced its three most recent equity investments in the US real estate market. This brings Investcorp’s real estate investment this year to $300 million and demonstrates the firm’s confidence in the US real estate market.
Investcorp has just closed on its purchase of the seven-story Park Tower office complex in Long Beach, California for an undisclosed price. The deal gives Investcorp a Class A office tower in a major coastal metropolitan area. Park Tower closely follows Investcorp's $37 million acquisition of the Bethesda Health City building in Boynton Beach, Florida. Both properties offer strong "going in" cash yields and enjoy high quality existing tenancy underpinned by the business and residential communities in Greater Los Angeles and the corridor between West Palm Beach and Ft. Lauderdale.
"These two properties complement our growing mix of investments selected for their strong and stable tenant histories, ties to growing metropolitan communities, and above-market cash yields," said Herb Myers, a managing director in Investcorp's real estate group. "We believe they will provide our investors with yields that look especially attractive given the forecasted period of low interest rates and economic conditions we face today."
Middle Eastern investors have long been an active participant in the US real estate market. Since 2008, however, most investors have reduced or eliminated their exposure to US real estate. With property values reaching historic lows, investors from the Gulf Cooperation Council (GCC) are taking a second look at the promise of US real estate. Assets in the US have had a substantial price correction and returns are now at such high levels that many GCC investors are taking a second look at investing in the US.
Khalid Al Rumaihi, Managing Director at Investcorp and regional head for United Arab Emirates, said: "Despite the difficult economic conditions, Investcorp continues to secure investments with potential outperforming returns driven by its focus on strong fundamentals and concrete knowledge of the US real estate market. These three Shariah compliant US properties form a great addition to the mix of investments in our real estate portfolio given their solid and stable tenancy record and excellent locations within urban communities."
To find out if our real estate investment strategies are right for you, please contact us by email at info@floyd-associates.com or by phone at +1 (310) 300-0890.
To read more about Floyd Associates please visit www.floyd-associates.com.
Los Angeles – Tuesday, November22, 2011 – The real estate arm of the Bahrain-based investment company, Investcorp, recently announced its three most recent equity investments in the US real estate market. This brings Investcorp’s real estate investment this year to $300 million and demonstrates the firm’s confidence in the US real estate market.
Investcorp has just closed on its purchase of the seven-story Park Tower office complex in Long Beach, California for an undisclosed price. The deal gives Investcorp a Class A office tower in a major coastal metropolitan area. Park Tower closely follows Investcorp's $37 million acquisition of the Bethesda Health City building in Boynton Beach, Florida. Both properties offer strong "going in" cash yields and enjoy high quality existing tenancy underpinned by the business and residential communities in Greater Los Angeles and the corridor between West Palm Beach and Ft. Lauderdale.
"These two properties complement our growing mix of investments selected for their strong and stable tenant histories, ties to growing metropolitan communities, and above-market cash yields," said Herb Myers, a managing director in Investcorp's real estate group. "We believe they will provide our investors with yields that look especially attractive given the forecasted period of low interest rates and economic conditions we face today."
Middle Eastern investors have long been an active participant in the US real estate market. Since 2008, however, most investors have reduced or eliminated their exposure to US real estate. With property values reaching historic lows, investors from the Gulf Cooperation Council (GCC) are taking a second look at the promise of US real estate. Assets in the US have had a substantial price correction and returns are now at such high levels that many GCC investors are taking a second look at investing in the US.
Khalid Al Rumaihi, Managing Director at Investcorp and regional head for United Arab Emirates, said: "Despite the difficult economic conditions, Investcorp continues to secure investments with potential outperforming returns driven by its focus on strong fundamentals and concrete knowledge of the US real estate market. These three Shariah compliant US properties form a great addition to the mix of investments in our real estate portfolio given their solid and stable tenancy record and excellent locations within urban communities."
To find out if our real estate investment strategies are right for you, please contact us by email at info@floyd-associates.com or by phone at +1 (310) 300-0890.
To read more about Floyd Associates please visit www.floyd-associates.com.
Tuesday, November 8, 2011
CA Foreclosure Activity Back up
Lenders Push Delinquent Loans More Aggressively
According to DataQuick News "After dropping to a three-year low in the second quarter of this year, the number of California homeowners being pulled into the foreclosure process snapped back to prior levels over the last three months."
A total of 71,275 Notices of Default (NoDs) were recorded at county recorders offices during the third quarter. That was up 25.9 percent from 56,633 for the prior three months, and down 14.4 percent from 83,261 in third-quarter 2010, according to San Diego-based DataQuick. "The way it looks right now, it's reasonable to expect default filings to run at a somewhat higher level than we saw earlier this year. Obviously, some lenders and loan servicers have begun to plow through their backlogs of delinquent loans more aggressively," said John Walsh, DataQuick's president.
The fact that lenders are pushing delinquent loans in the market, is good news for value investors with cash who are willing to pick up these assets at very low valuations. Markets often over-react to bad news and excess supply, creating an opportunity to invest in distressed properties at very favorable terms. Floyd Associates will continue to identify and acquire such properties.
To find out if our real estate investment strategies are right for you, please contact us by email at info@floyd-associates.com or by phone at +1 (310) 300-0890.
To read more about Floyd Associates please visit www.floyd-associates.com.
According to DataQuick News "After dropping to a three-year low in the second quarter of this year, the number of California homeowners being pulled into the foreclosure process snapped back to prior levels over the last three months."
A total of 71,275 Notices of Default (NoDs) were recorded at county recorders offices during the third quarter. That was up 25.9 percent from 56,633 for the prior three months, and down 14.4 percent from 83,261 in third-quarter 2010, according to San Diego-based DataQuick. "The way it looks right now, it's reasonable to expect default filings to run at a somewhat higher level than we saw earlier this year. Obviously, some lenders and loan servicers have begun to plow through their backlogs of delinquent loans more aggressively," said John Walsh, DataQuick's president.
The fact that lenders are pushing delinquent loans in the market, is good news for value investors with cash who are willing to pick up these assets at very low valuations. Markets often over-react to bad news and excess supply, creating an opportunity to invest in distressed properties at very favorable terms. Floyd Associates will continue to identify and acquire such properties.
To find out if our real estate investment strategies are right for you, please contact us by email at info@floyd-associates.com or by phone at +1 (310) 300-0890.
To read more about Floyd Associates please visit www.floyd-associates.com.
Sunday, October 30, 2011
Floyd Associates Continues to Acquire Residential Real Estate Assets in 2011
Southern California's Distressed Real Estate Market Provides Exceptional Investment Opportunities
Floyd Associates announced that its real estate investment arm continued to acquire distressed residential real estate assets during the first three quarters of 2011.
"We continue to identify and invest in real estate in Southern California. From a value investment stand point, we have not seen opportunities like these in many years and our goal is to build a solid portfolio of income properties that provide us and our investors with steady income and promising capital gain potentials," said Mr. Nima Montazeri, Floyd Associates' Managing Director. "2011 has so far been a very active year for us. We have added a few properties to our portfolio and are in line to execute a few more acquisitions by the end of the year," he added.
In September, Southern California home prices continued their sideways-to-downward slide, with the region's median sale price falling below the year-ago level for the seventh consecutive month, a real estate information service reported. According to DataQuick, today's median price is also undermined by the Southland's extraordinarily weak new-home market. Sales of newly built homes, which typically sell for more than resale homes, totaled 1,056 last month, down 24.9 percent from a year ago and the lowest for the month of September in DataQuick's records back to 1988. Many of the sub-$300,000 deals were distressed properties, which accounted for more than half of the Southland resale market last month. Nearly one out of three homes resold last month was a foreclosure, while close to one in five was a "short sale."
Such statistics very clearly show the glut in the market and underscore the concentration of distressed properties in the sub-$300,000 asset class. We believe that such pressures combined with the extreme difficulties for many families to qualify for financing, have depressed prices to levels below the underlying assets' fundamental values. This in turn creates long term solid investment opportunities for investors who want to realize above-average returns while taking low risks.
To find out if our real estate investment strategies are right for you, please contact us by email at info@floyd-associates.com or by phone at +1 (310) 300-0890.
To read more about Floyd Associates please visit www.floyd-associates.com.
NOTICE: THIS IS NOT AN OFFER TO BUY OR SELL SECURITIES. THIS IS NOT A SOLICITATION FOR INVESTMENTS.
Floyd Associates announced that its real estate investment arm continued to acquire distressed residential real estate assets during the first three quarters of 2011.
"We continue to identify and invest in real estate in Southern California. From a value investment stand point, we have not seen opportunities like these in many years and our goal is to build a solid portfolio of income properties that provide us and our investors with steady income and promising capital gain potentials," said Mr. Nima Montazeri, Floyd Associates' Managing Director. "2011 has so far been a very active year for us. We have added a few properties to our portfolio and are in line to execute a few more acquisitions by the end of the year," he added.
In September, Southern California home prices continued their sideways-to-downward slide, with the region's median sale price falling below the year-ago level for the seventh consecutive month, a real estate information service reported. According to DataQuick, today's median price is also undermined by the Southland's extraordinarily weak new-home market. Sales of newly built homes, which typically sell for more than resale homes, totaled 1,056 last month, down 24.9 percent from a year ago and the lowest for the month of September in DataQuick's records back to 1988. Many of the sub-$300,000 deals were distressed properties, which accounted for more than half of the Southland resale market last month. Nearly one out of three homes resold last month was a foreclosure, while close to one in five was a "short sale."
Such statistics very clearly show the glut in the market and underscore the concentration of distressed properties in the sub-$300,000 asset class. We believe that such pressures combined with the extreme difficulties for many families to qualify for financing, have depressed prices to levels below the underlying assets' fundamental values. This in turn creates long term solid investment opportunities for investors who want to realize above-average returns while taking low risks.
To find out if our real estate investment strategies are right for you, please contact us by email at info@floyd-associates.com or by phone at +1 (310) 300-0890.
To read more about Floyd Associates please visit www.floyd-associates.com.
NOTICE: THIS IS NOT AN OFFER TO BUY OR SELL SECURITIES. THIS IS NOT A SOLICITATION FOR INVESTMENTS.
Monday, September 26, 2011
More Bad News for the US Real Estate Market
As reported by the Associated Press, “sales of new homes fell to a six-month low in August. The fourth straight monthly decline during the peak buying season suggest the housing market is year away from recovery.” In our update last week, we reported sale of new and resale houses in August was up 8.8% from July. This shows that the aggregate increase in the number of transactions was mostly due to existing home sales. The weak new home sales volume is a clear sign of the glut in the real estate market. California home prices have been in a downward spiral for over 3 years but there is still so much supply in the market that there is no sign of a turnaround in the near future. This problem is exacerbated by the weak demand.
Contributing factors to the dismal real estate demand are high unemployment, very tough lending standards, and strict down-payment requirements. These factors are preventing potential buyers from purchasing real estate and have made it near impossible for working class families in the metropolitan areas to purchase a home.
Combine the high supply with low demand and all of a sudden low and falling prices make a hell of a lot more sense. The big question, however, is how long is this trend going to continue? It is very easy to adopt a doom and gloom view and to forget that economies have cycles and that big winners almost always emerge out of bad economic times.
The United States is still the biggest economy in the world with a sophisticated industrial and technological base. According to data supplied by the Migration Policy Institute, the US economy has benefited from an average annual inflow of more than one million immigrants between 2000-2010, most of whom settle in major metropolitan areas and create demand for real estate and other goods and services. With adjustments to the size the dynamics of the labor force unemployment will eventually stabilize and then start to decline. Since 2008 families have made and will continue to make adjustments to their spending habits creating healthier balance sheets. In our view, all this will, in the long term, change the direction of the economy.
CASH IS KING
What remains constant through economic cycles is the people need a place to live in. In “down” times, investors with cash can acquire assets at fire sale prices. The weak market for home sales often contribute to relatively strong rental markets guaranteeing healthy returns from the acquired assets. When the storm settles and when demand is reinvigorated, those who had the guts to invest in a down market usually reap above average returns. That’s why we believe that now is the time to use all resources to increase real estate holdings in your portfolio.
It is true that during the boom years developments in some areas were entirely based on speculation and that such dwellings may never experience considerable growth. Major metropolitan areas, however, follow a completely difference logic. They are supported by large populations and various industrial and technological establishments. Natural population growth and immigration will continue to contribute to a healthy increase in the size of the market and eventually demand in housing will exceed supply prompting relevant price adjustments.
Contributing factors to the dismal real estate demand are high unemployment, very tough lending standards, and strict down-payment requirements. These factors are preventing potential buyers from purchasing real estate and have made it near impossible for working class families in the metropolitan areas to purchase a home.
Combine the high supply with low demand and all of a sudden low and falling prices make a hell of a lot more sense. The big question, however, is how long is this trend going to continue? It is very easy to adopt a doom and gloom view and to forget that economies have cycles and that big winners almost always emerge out of bad economic times.
The United States is still the biggest economy in the world with a sophisticated industrial and technological base. According to data supplied by the Migration Policy Institute, the US economy has benefited from an average annual inflow of more than one million immigrants between 2000-2010, most of whom settle in major metropolitan areas and create demand for real estate and other goods and services. With adjustments to the size the dynamics of the labor force unemployment will eventually stabilize and then start to decline. Since 2008 families have made and will continue to make adjustments to their spending habits creating healthier balance sheets. In our view, all this will, in the long term, change the direction of the economy.
CASH IS KING
What remains constant through economic cycles is the people need a place to live in. In “down” times, investors with cash can acquire assets at fire sale prices. The weak market for home sales often contribute to relatively strong rental markets guaranteeing healthy returns from the acquired assets. When the storm settles and when demand is reinvigorated, those who had the guts to invest in a down market usually reap above average returns. That’s why we believe that now is the time to use all resources to increase real estate holdings in your portfolio.
It is true that during the boom years developments in some areas were entirely based on speculation and that such dwellings may never experience considerable growth. Major metropolitan areas, however, follow a completely difference logic. They are supported by large populations and various industrial and technological establishments. Natural population growth and immigration will continue to contribute to a healthy increase in the size of the market and eventually demand in housing will exceed supply prompting relevant price adjustments.
Friday, September 23, 2011
August Home Sales in California
August Home Sales in California up 8.8% from July
According to Dataquick Statistics, an estimated 37,734 new and resale houses and condos were sold statewide in August. That was up 8.8 percent from 34,695 in July, and up 10.2 percent from 34,239 for August 2010. California sales for the month of August have varied from a low of 29,764 in 1992 to a high of 73,285 in 2005, while the average is 48,344.
The median price paid for a California home in August was $249,000, down 1.2 percent from $252,000 in July, and down 4.2 percent from $260,000 for August a year ago. The bottom of the current cycle was $221,000 in April 2009, while the peak was $484,000 in early 2007.
Distressed property sales continued to make up more than half of California's resale market last month. Of the existing homes sold last month, 34.6 percent were properties that had been foreclosed on during the past year. That was up from a revised 34.5 percent in July and down from 35.6 percent in August a year ago. The all-time high was in February 2009 at 58.5 percent.
According to Dataquick Statistics, an estimated 37,734 new and resale houses and condos were sold statewide in August. That was up 8.8 percent from 34,695 in July, and up 10.2 percent from 34,239 for August 2010. California sales for the month of August have varied from a low of 29,764 in 1992 to a high of 73,285 in 2005, while the average is 48,344.
The median price paid for a California home in August was $249,000, down 1.2 percent from $252,000 in July, and down 4.2 percent from $260,000 for August a year ago. The bottom of the current cycle was $221,000 in April 2009, while the peak was $484,000 in early 2007.
Distressed property sales continued to make up more than half of California's resale market last month. Of the existing homes sold last month, 34.6 percent were properties that had been foreclosed on during the past year. That was up from a revised 34.5 percent in July and down from 35.6 percent in August a year ago. The all-time high was in February 2009 at 58.5 percent.
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