I’m guessing that the really low prices are foreclosures and the not so low prices are typical home sales. Is this the case? If so, this gives some hope to those trying to sell their home for a more reasonable price.

If not, then I’m trying to figure out what can cause such a drastic disparity. For example, two virtually identical homes in the same neighborhood sold within days of each other: one at $125k and one at $175k.

Austin has not been unaffected by the national drop in home sales. The monthly average for single family home sales has dropped when compared to the same month last year, according to the Austin Board of Realtors. Single family home sales have declined by about 6% from the same time last year and the dollar value from sales has declined about 11%.

However it is not all bad news, the median price for single family homes in Austin increased 3%. Nationally, the average figures have been much worse than this, in spite of Federal help. The National Association of Realtors (NAR) have reported that the problems with the mortgage market disrupted home sales and distorted prices in September as well as October.

Mortgage problems may now ease up; the interest rate has been lowered considerably and media reports have made the public more aware of pitfalls when financing. A new bill has been introduced at the Senate to limit some of the financial practices that have caused many borrowers to foreclose on their homes.

Many people have decided to stay put if they can, and to renovate or remodel if they need extra space. The realty market always expects a lull during the Christmas and New Year period and prospects in Austin for 2008 are looking good.

Austin was one of two Texas cities to be named among the top 50 office markets in the world with fastest growing rents. (The top two cities were Singapore and Moscow). Austin office rents rose by 15.9% and in the other Texas city, Houston, they increased by 17.8%.

The new Home Depot will be the biggest retailer yet in Catellus Development Group’s Mueller redevelopment. It will be built to a sustainable design as stipulated by Austin Energy’s Green Building program and Home Depot is aiming for a three star rating. The opening is scheduled for late 2008, when the Austin realty market will probably be booming again!

According to Estatesdubai.com, the currently the UAE real estate market is enjoying a boom, and has been rated as the most active among all property markets in the GCC region.

The UAE property sector has grown considerably over the past five years, due to several factors at the micro and macro economic levels, like the population growth, for instance, which has touched 7 percent per annum.

From today till 2010, UAE do not expect any slowdown in property prices due to the gap maintained between demand and supply. 2010 and 2012, are the opening date of many projects, and hence there are no possibilities of price reduction. It is believed that prices of real estate products will continue to increase during the coming years, due to higher demand from expatriates and due to increased cost of labor and construction materials.

As per the property report released by Great Properties, a Dubai-based real estate sales and marketing agency, the UAE realty boom is likely to face a major roadblock, which may seriously hinder the completion of projects across the emirates. The report states that the real estate market is more of investors’ market rather than buyers’ market, due to which the realty prices have surged tremendously. The developers are facing high construction costs and delayed completion of projects.

The report reveals that the main reason behind such a scenario is the ready-mix concrete suppliers, struggling with a huge backlog of orders due to immense shortage in cement supplies. Even the prices of cement and steel have gone up by 50 and 70 percent respectively last year.

This being an international trend will have its impact on real estate prices, along with inflation, and high demand. Another major concern for the contractors is the labour, as rents of camps have increased during the past two years, with the resulting costs too, rising up to thrice the value of last year.

Further, the report states that delay in delivery of new properties have led to further rent appreciation with the prices increasing by 40 to 50 percent during the past few years.. Most projects are still under construction, and the next wave of supply will hit the market towards the year 2010, and this will bring about equilibrium in property prices.

The Report was undertaken by ImpaQta Management Advisory Services, a key knowledge resource in the Middle East region, together with Great Properties, an expert marketing, sales and post-sales services agency, for offering interested parties with decision-making tools, future forecasts, and analysis of UAE realty market, and guiding them with property investment opportunities, indicating the factors that boost the sector.

Great Properties is currently working on several projects across the UAE. This report is their latest offering, which aims to create a brief understanding of the UAE realty market so as to enable investors, brokers and developers to remain better informed about market trends and current product prices.

There are also signs that housing market activity in the UK is picking up slightly, with mortgage approvals up slightly and surveyors reporting increased interest in house purchases. World stock markets too have recovered significantly from their low points in March.

All of this is good news, but our view remains largely unchanged as regards the overall state of the world economy and also the property market in Mallorca. That is, that there is indeed a slowdown in the rate of fall of the key economic indicators in some countries. And this could be a sign that the recession is gradually finding a its lowest point. We do not feel however that there will be a quick or significant rebound except for perhaps in the stock markets driven by traders who appear in the main to be flying in the face of what continues to be pretty dire economic and company performance data.

Furthermore some of the key actual economic indicators, and things the UK and other counties still have to contend with, look far from cheery. Unemployment could reach 9% in the UK, 10% in the US and 20% in Spain by the end of the year. This will undoubtedly have a negative effect on consumption and the housing market in these countries.

Added to this, these signals of recovery are not yet apparent in a small number of the biggest economies in the world such as the US, Germany and Japan. In many developing countries too conditions are still getting worse.

With all this in mind, we think it far too early to be heralding the end of the recession, or even that it has reached its ultimate low. It may be that we will see a modest return to growth in some countries in 2010, but it will take longer, possibly much longer, to return to the levels of activity seen prior to 2007.

On top of this there are still great concerns over the financial health of some of the worlds biggest economies. And the overall effects of the massive amounts of money pumped in to stimulate these economies is not yet clear. The IMF has warned that there could still be another $3 trillion in losses for the financial sector as a whole before the crisis is over.

Our prognosis for the Mallorca property market

As above, there are plenty of solid reasons to believe there will be no significant uplift in property markets in any country, even the strongest such as mallorca, during the course of this year and most likely the first half of 2010 too.

On top of the global macro economic considerations there are factors specific to the Spanish property market that also put pressure on prices across the region. These are highlighted in the article mentioned above.

However, it is also very clear that activity has picked up for and that sales are being made, albeit at a relatively low level. There are a number of more positive factors that are contributing to this.

Euro interest rates are lower now than they have even been

The latest European Central Bank’s interest rate cut to 1.00% is the lowest level since the single currency’s creation. It is possible that the rate will be cut still further later in the year. Whilst it is likely that not all of this will be passed on to lenders, any lowering of consumer rates is positive and will help stimulate the markets to some extent.

In Mallorca we are seeing buyers are taking 50% loans so they have a hedge against any further significant currency fluctuations. Braver investors are seeking higher percentage Euro loans on the basis that Sterling will improve against the Euro and therefore, paying off the loan and converting the bulk of their Sterling at a later date will be to their advantage.

Reflecting this there was a small increase in the number of new mortgages granted in March although the number is still significantly down on last year.

Continue opportunities for property purchases at very low asking prices for Mallorca

This is the most important factor. Buyers in the Mallorca property market at present tend to be either professional investors, or private individuals who realise a) that there are some very good deals to be had in the current market and, b) that to delay looking for a property in the hope that conditions will move even more in their favour might mean missing out on a great opportunity that is available in the market right now.

We have written several times on this subject and you can read previous articles ono the subject via the links listed on this page of the Mallorca Property Partners website.

Overall our prediction remains that average property prices in Mallorca will drop further through to the end of this year, possibly continuing into the first half of 2010. We do not however think this drop will be as high as in other parts of Spain (predicted to be 10% overall this year and 12% next year by analysts at BBVA – one of Spain’s leading banks). The fact that there are active buyers in the market in Mallorca sets the region apart from most. And there are plenty of other solid reasons to set Mallorca apart from other parts of mainland Spain, the other Spanish islands, and most other international property markets too (see the “Green shoots” article referenced above).

But once again the over-riding observation is to not rely too much on market data and statistical analyses. This is because of the considerable variance in actual selling prices above and below the average prices in this unusual market environment. The reason for this is that the seller’s circumstance is a more powerful factor than in a “normal” market environment and this is not directly related to the usual determinants of the value of a property.

There are, therefore, some exceptional deals being done at price levels that are unlikely to be improved upon regardless of where average prices go to. To illustrate, see this selection of properties in Mallorca that have  either been reduced in price or listed at very low asking prices.

If you are reading this because you might be interested in buying a property in Mallorca, our advice is to monitor opportunities on an ongoing basis. You might see the ideal property right now and be able to get it at an unbeatable price. It is not easy though to identify the best opportunities, as not all owners are dropping the asking price but still may negotiate significantly when it comes to an offer.

Your best approach would be to brief us at MPP to use our experience and unrivalled contact base to look out for the best Mallorca property opportunities for you. Read more about what Mallorca Property Partners offer.

I loved this story of a property in the Byron Hinterland being sold in the $mil and a half region. It seems the potential new owners discussed the purchase with their psychic Geomancer – this is like a Feng Shui expert. They were told that the vendors were not yet ready to leave this property and that they should wait for a more auspicious time. When told this news, the vendors did what any sensible Byron property owner would do â?? called in their personal shaman for a full psychic cleanse and sage smudging. Negotiations are now proceeding smoothly.

Lo Doc Loans and Tax

For some time now the ATO have been rattling their swords over Lo doc loans. It seems – Shock! Horror! â?? some people have been exaggerating their declared income when going for a loan while minimizing it when filing with the tax Department. It is understandable, I suppose, that the ATO would wish to tax the Great Australian Tax Payer at the higher figure if given the chance and this, apparently, is what they intend to do.

A recent story from Crikey.com states the commissioner of the ATO Michael Dâ??Ascenzo is saying he knows that people are fibbing on their Lo Doc Loan declarations and declares that if any are caught during an audit then the higher figure will be what is the taxable amount. Of course brokers have been made out to be the baddies in this situation as well but the real story here is this is just another indication of the coming tightening of monetary policy. If Paul Keating was still around he would say this is the â??credit squeeze we have to have!â?

Put out the “Fire Sales”

In a similar vein, our local member Don Page is behind a move to stop Mortgagee-in-Possession auctions going on as “Fire Sales”. The banks and agents are only interested in getting back the mortgage debt when someone defaults on their loan with no interest in helping the vendor retain as much equity as possible. If the new law is accepted it means that if a house is sold under value, the Mortgagee can be held accountable for the balance and all effort must be made to properly promote and list the property (not just ring up a mate and do a deal!)

Buyer’s Market

Domain.com pointed out that last weekend there were twice as many properties going to auction in Sydney than normal – about 1300 – nearly double the previous average of 590. However clearance rates have sunk to 63%, which is the lowest since August 2005. That is a statistic verifying my intuition that we have quickly turned from what was expected to be a boomer season for agents into a bit of a bear market. The future – no one will predict but I feel the sentiment is equal between those saying we will have a soft 6 – 12 months to the doom and gloomers saying we are in for an extended rough patch.

Resources:

www.byronpropertysearch.com.au

www.realestate.com.au

Find one of many San Diego realtors and you will be glad you did. It is important to look through the many San Diego realtors and find one that best suits you in terms of area, price range, etc. Can any of the San Diego realtors listed help you find a great location? Maybe. But the key is to go with experience and connections. Why spend your time fussing over where to live and worrying about whether you made the right decision or not when a local realtor can give you the data to make a good decision.

Many listed San Diego realtors can help you find exactly what you may be looking for to make your life easier and your move more comfortable. They may even be able to help you find a situation or environment you may not have initially considered. It’s the job of San Diego realtors to find out what you want and then find out where you need to be- based on your preferences.

If you decide to search through San Diego realtors, always check into the individual’s level of experience. That will be the main factor on whether you chose someone who is going to benefit you as you relocate. New comers never have much to lose when they are first starting out. Sometimes this can be problematic because they don’t care about you as an individual. However, prominent San Diego realtors will not let you down if they have reputations to uphold. San Diego realtors know that if you end up unhappy with your move, they could have done better. If they know that, then others will eventually too.

It is very important for San Diego realtors to maintain an image of great service. This ultimately benefits the client, meaning you!

Take advantage by choosing one of many San Diego realtors to help create relocation to the home of your dreams. San Diego realtors can help you choose prime areas, help you maintain a budget when applying for mortgages; they can even make the mortgage application process easier by cutting many corners and incorporating the process into part of their services! With all these added benefits, why struggle alone in your search? Search for San Diego realtors and find one that suits your specific needs. This way, the San Diego realtors do all the work and you can spend the time you would have wasted baking in the sun, waiting for them to do the leg work and paperwork involved.

The real estate in Miami constitutes the most desirable properties in the world. However, if you have decided to sell your home in Miami real estate, there are certain things you need to consider. Selling your home may not be a simple task; thereby you need to appoint a real estate agent to assist you in your venture. Your agent will help you to put up a listing in the Miami Real Estate Market. The following are some guidelines that you need to pursue while listing your property.

Introduce your real estate in a reputed realty group that offers listing services in Miami. Complete your real estate listing and provide accurate information. Craft the listing in such a way that it is easy enough to understand as well as tempt your prospective buyer to know more about it.

You can opt for online real estate listings, as they are one of the best marketing tools these days. You can create stunning online visual portfolios, which will play a vital role in marketing your property. With the help of several technological advances you can allow your prospective buyers to inspect your property from every angle. This will also help you to get buyers from different city and states, willing to buy real estate in Miami.

Include the basic facts in your listing, such as the area of your property, number of bedrooms as well as the amount of property tax paid. Give a brief detail about the attractive selling points of your real estate, like remodeled master bedroom, large car parking lot, or even its location. Add color pictures of your property to support your written listing.

Be honest while being factual. It is better not to manipulate the facts as the buyers will not be interested to work with you if your claims are inflated. Moreover, in Miami, not disclosing all the facts about your real estate is against the law.

Facts to check out while listing your real estate in Miami:

Place your property in multiple listing services covering all of Miami.

Opt for listing your real estate in national and international commercial listing and analysis database systems.

Organize a detailed value analysis of your property.

Use local newspapers and classified magazines such as Miami Herald, Miami Today, Sun Sentinel, Business Monday, Daily Business Review and South Florida Business Journal for classified and display ads of your real estate.

Shanghaiâ??s gross rental yields average only 3.74%. These are lowest gross rental yields in our China sample, but then Shanghai is the only city where apartment selling prices have apparently not dropped, according to the China Real Estate Index System (CREIS) and eHomeday. Shanghai residential asking prices average US$2,742 per square metre (sq. m.).

Beijing apartments earn slightly higher gross rental incomes of around 4.21%. These are the countryâ??s most expensive apartments, with an average offer price of average US$2,977 per sq. m. for the high-end used apartments in our sample.

Chengdu also has rather low gross rental yields, an average of 3.88%. Chengdu apartments are the cheapest among the five cities, at US$1,060 per sq. m.

The highest rental yields are in Shenzhen, where apartments in our sample earn gross rental yields of 5.69%. The high-end used apartments in Shenzhen cost an average of US$ 1,780 per sq. m.

Guangzhou apartments earn mid-range gross rental yields of 5.41%. Our sample of Guangzhou apartment prices averages around US$1,577 per sq. m.

BACKGROUND IDEA â?? RENTAL YIELD

What does â??gross rental yieldâ? mean? Itâ??s very similar to the Price / Earnings (P/E) ratio in the stock market. Just as share prices have a P/E range, house prices tend to fluctuate around a rental yield range, research shows.

The gross rental yield is the annual rental earnings / the value of the property.

So if the rent is US$5,000 and the property is worth US$100,000, the yield is 5%.

Our rule-of-thumb is that a gross rental yield of 6% to 7% means a housing market is â??fairly valuedâ??, though importantly, developing country housing markets usually have higher yields than developed, because of structural issues discouraging housing purchase such as the difficulty of getting mortgage finance.

Where yields (and rental costs) are comparatively low:

· People will prefer to rent, rather than to buy

· Investors are unlikely to â??buy-to-letâ??

· Rents will tend rise faster than prices

Conclusion: No turnaround in Chinaâ??s residential prices likely soon.

When the Chinese housing market was roaring ahead, rents moved up much less than prices. With the current market downturn, rents have dropped together with property prices (though slightly less). Gross rental yields now average a modest 4.42%.

Why are Chinese rental yields so low? Prices in China surged till September 2007, and then paused â?? and have not substantially dropped since then, according to CREIS, which uses a hedonic methodology (eHomeday arrives at closely similar results).

How far do gross rental yields need to rise in China? Chinaâ??s gross rental yields of 4.42% are lower than would be expected in a developing economy. They are low, also, compared to other economies with similar income-per-capita.

We conclude that until one of two events occurs â?? more residential price falls, or substantial increases in rents – residential prices are unlikely to begin a sustained recovery in urban China.

The Chinese government has taken steps to support the market, such as temporarily suspending the business tax for residential property transfers, and encouraging cities to permit foreign purchases. Chinaâ??s economy remains relatively strong, because of prompt government measures. Consumption spending is strong, restaurants are full, optimism remains high.

However, gross rental yields are still too low. Therefore, it is unlikely that there will be a convincing upturn in Chinese residential prices soon, the Global Property Guide believes.

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