10 Real Estate Markets to Watch in 2011. # 6 is...

6. Fargo, N.D.-Minn.

Total population (2009): 199,989
Median sales price (Q4 2010): $148,500
Median sales price % change (Q4 '09-Q4 '10): 6.2%
Sales volume (# units sold in 2010): 2,326
Sales volume % change (2009-10): -21.7%
Unemployment rate (Dec. 2010): 4.0%
Foreclosure activity rate (Jan. 2011): 1 in 7,423 units
In the past two years, as unemployment has shot up to hover between 9 percent and 10 percent, North Dakota has consistently experienced substantially lower unemployment than almost every other state in the nation. In Fargo and Bismarck, unemployment stood at 4 percent and 3.9 percent, respectively, in December, compared with 9.1 percent nationally.

North Dakota has benefited from an oil boom in the western part of the state that began around 2005 and has continued to grow since then. 2010 was a "year of record production" in the state.

The Fargo market is home to several oil, agricultural, medical and technology companies, including the business software branch of Microsoft, that provide ready jobs for graduating students from the area's technical school and three colleges.

10 Real Estate Markets to Watch in 2011 (USA), #7 is...

7. Burlington-South Burlington, Vt.

Total population (2009): 207,688
Median sales price (Q4 2010): $270,600
Median sales price % change (Q4 '09-Q4 '10): 14.4%
Sales volume (# units sold in 2010): 1,223
Sales volume % change (2009-10): -2.7%
Unemployment rate (Dec. 2010): 4.5%
Foreclosure activity rate (2010): 1 in 991 units
The median sales price in Burlington-South Burlington jumped 14.4 percent in the fourth quarter of 2010 compared to the same period a year before, to $270,600

The rental market vacancy rate is very low for a number of reasons: older housing stock and tough permitting procedures, the local colleges, (a) popular place to live ... with the lake, hiking and skiing nearby. This, in turn, pushes our housing prices up well beyond what other parts of the state pay.

The median sales price for residential listings in the state of Vermont in 2010 was $202,000, according to MLS. Average days on market for listings in Vermont as a whole were 161 last year, compared with 126 in the Burlington-South Burlington metro area, according to the MLS.

Major employers in the Burlington market include the University of Vermont, IBM, Fletcher Allen Health Care, Ben & Jerry's, Burton Snowboards, Seventh Generation, Bruegger's Bagels, General Electric Healthcare, and Pizzagalli Construction Co.



10 Real Estate Markets to Watch in 2011, #8 is ...

8. Bloomington-Normal, Ill.

Total population (2009): 167,699
Median sales price (Q4 2010): $167,700
Median sales price % change (Q4 '09-Q4 '10): 14.3%
Sales volume (# units sold in 2010): 2,052
Sales volume % change (2009-10): -9.7%
Unemployment rate (Dec. 2010): 6.7%
Foreclosure activity rate (2010): 1 in 1,194 units
The median sales price in the Bloomington-Normal metro area rose 14.3 percent between fourth-quarter 2009 and fourth-quarter 2010, to $167,700. During that time, median price rose every quarter except the third quarter of 2010, when it remained essentially flat from the previous quarter.

Bloomington-Normal's population grew 14.2 percent from 2005-09, according to the U.S. Census Bureau. By contrast, the nation's population grew 6.5 percent during the same period.

Bloomington-Normal's major employers include State Farm Insurance, Illinois State University, Country Financial, Advocate BroMenn Medical Center, Mitsubishi Motor Manufacturing, Nestle USA and the local school district.

"The unemployment rate … is extremely low due to the fact that we have more degree-earning citizens per capita in our local economy. This economy, while having employers such as Mitsubishi, is not solely based in durable goods, but rather in a service-based marketplace. The median family income is $75,550 whereas the state average is about $59,300 ", says Les Sohar of Re/Max, an International real estate expert.



Top 10 Real Estate markets to watch in 2011 (USA), #9 is...

Total population (2009): 106,286
Median sales price (Q4 2010): $168,500
Median sales price % change (Q4 '09-Q4 '10): 4.2%
Sales volume (# units sold in 2010): 1,461
Sales volume % change (2009-10): 4%
Unemployment rate (Dec. 2010): 3.9%
Foreclosure activity rate (Jan. 2011): 1 in 16,082 units
In addition to enjoying one of the country's lowest unemployment rates, at 3.9 percent, Bismarck received the highest job-growth projection from Moody's Analytics of the 10 markets.

The economic analysis and forecasting company predicted 3.3 percent job growth in Bismarck between the third quarter of 2010 and the third quarter of 2011, compared with 1.9 percent nationally. Six of the 10 markets overall had higher job-growth projections than the national average.

Area home sales tracked by the Realtor association were up 4 percent from 2009 to 2010, to 1,461 units, and the median sales price also rose 4 percent in 2010, to $167,735, Les Sohar, an International real estate expert said. As of mid-February this year, listings in Bismarck spent an average 77 days on market, compared with 135 days nationwide.

In Bismarck, median household income also rose 4 percent from 2008 to 2009, the latest figures available from the U.S. Census Bureau. That's compared with a 2.9 percent decline in median income nationwide.

Top 10 Real Estate markets to watch in 2011 (USA), #10 is...

Elmira, N.Y.

Total population (2009): 88,331
Median sales price (Q4 2010): $101,100
Median sales price % change (Q4 '09-Q4 '10): 16.5%
Sales volume (# units sold in 2010): 627
Sales volume % change (2009-10): 7.7%
Unemployment rate (Dec. 2010): 8%
Foreclosure activity rate (Jan. 2011): 1 in 13,983 units

The Elmira market saw the biggest jump in price appreciation between fourth-quarter 2009 and fourth-quarter 2010 of 152 metro areas tracked by the National Association of Realtors: up 16.5 percent, to $101,100. In spite of the climb, the vast majority of homes, 87.5 percent, remain affordable to those who make the area's median income.

According to the U.S. Census Bureau, Elmira's median household income rose 5.1 percent between 2008 and 2009 -- the biggest rise among the 10 markets. The number of homes sold in the area increased 7.7 percent in 2010, while most markets saw their sales decrease.

 

IBM to Buy Closely Held Tririga, Gaining Software for Managing Real Estate

IBM, the world’s largest computer-services provider, agreed to acquire Tririga Inc., gaining software that manages real estate holdings.
Tririga’s programs help manage buildings, strategizing space usage, monitoring utility costs and estimating construction expense, Armonk, New York-based IBM said today in a statement. The financial terms weren’t disclosed. Tririga, which is closely held, is based in Las Vegas and has about 200 employees worldwide, according to the statement.

IBM expects that projects making buildings, hospitals and highways more efficient -- an initiative IBM calls Smarter Planet -- will be a $10 billion business for the company by 2015. IBM plans to make $20 billion in acquisitions through 2015, buoying that program as well as other growth areas, such as analytics, company officials have told investors.

The agreement ends IBM’s longest acquisition drought since 2003.
IBM rose 32 cents to $158 at 4 p.m. in New York Stock Exchange composite trading. The shares have climbed 23 percent in the past year.

Japan - the economic fallout from the disaster!

It is worth examining what could happen economically in the days to come. There will be a massive rebuilding effort, no doubt successful, just as Japan did in the aftermath of the Second World War. That will lift Japan’s GDP over time.

However, in the short-term, there will be factory shutdowns. There could add to a shortage of some critical parts, particularly related to electronic products, and thereby lift inflationary pressure for these goods worldwide. Less nuclear energy usage will mean more oil consumption, which could also add to inflationary pressure on energy products.

The money for rebuilding will be from government borrowing. Japan already has one of the highest government debts in relation to the economy, measurably higher than the national debt in the U.S. But unlike America, most debt borrowing is from Japanese citizens. So in a sense Japan owes money to the Japanese. In America, about 40 percent of the debt is held by foreigners, which despite creating lower debt than in Japan, makes it more alarming. Eventually, more borrowing by Japan will mean less total global savings to purchase U.S. debt. That means the U.S. government will need to offer higher interest rates to borrow once Japan slowly regroups and recovers.

Median Age of Home Buyers: 2001 – 2010

The typical age of home buyers has remained at 39 years of age since 2007.

However, when looking closer there are differences among first-time home buyers and repeat home buyers.

The age of first-time home buyers fluctuates with household affordability. From 2003 to 2006, during the housing boom, younger buyers had a more difficult time entering the market and the typical age rose to 32. In 2007, the typical age of first-time home buyers fell to 31 and from 2008 to 2010 the typical age has remained at 30.



Among repeat buyers the story is different. When many markets became buyer’s markets, current home owners stayed in their homes longer, putting off selling and moving to a different home. This affected not only tenure in home, but the typical age of repeat buyers. Repeat buyers increased in age steadily on an annual basis from 41 in 2001 to 49 in 2010.

Chinese investors once again pouring money into Canadian real estate

In Vancouver, real estate is the economy. So for many, news that Chinese investors are once again arriving in droves to buy up property is being cheered.
Real-estate agents haven’t seen anything like it since the mid-1990s, when fears surrounding the Hong Kong handover fuelled the first rush into the local market by Chinese investors. This second charge could be as substantial as the first, which drove up property values by hundreds of thousands of dollars.

Back then, suburban Richmond was the destination of choice. And while it remains the preferred location, investors from mainland China are buying up property throughout Greater Vancouver. Toronto too.
There are more wealthy people in China than ever before. Concerns about inflation and a real-estate bubble prompted the Chinese government to limit the number of condominiums people can own to two. So the wealthiest Chinese are looking elsewhere to invest their money.
That it’s hard to get money out of the Communist country appears to be a myth.
“Real-estate values in China have doubled over the last two or three years,’ said Les Sohar, an International real estate specialist. “So real estate in Vancouver and Toronto doesn’t seem too expensive to them any more.
“We’re also seeing a lot of Chinese looking for a parachute plan. These are people afraid of a regime change in China and what that might mean for their wealth base. Canada is seen as a safe place to put their money.”
The Chinese love the political and economic stability Canada offers. We have a good education system too, which is why so many mainland Chinese send their children here to go to school. It is common for a mother and her children to come to over, while the husband remains in China to earn a living.
Thanks largely to the latest great push from China, the average price of a home in Greater Vancouver rose 12 per cent in 2010 and is expected to rise another three per cent this year, according to Canada Mortgage and Housing Corp.

From the ashes and mud of Japan comes a new dawn

Housing Affordability Soars in the USA, Investors Move In

It's a good time to buy a home or invest in a property. With so many distressed properties on the market, housing affordability has jumped to levels not seen in 20 years.
The Housing Opportunity Index (HOI) for the fourth quarter 2010, reveals that 73.9 percent of all new and existing homes sold were affordable to families earning the national median income of $64,400.



That record-setting level beat the last record high of 72.5 percent set during the first quarter of 2009. It was also the eighth consecutive quarter that the index has been above 70 percent. Until 2009, the HOI rarely topped 65 percent and never reached 70 percent.

Where the bargains are
With 93.5 percent of all homes sold affordable to households earning the area's median family income, the Indianapolis-Carmel, IN area was the nation's most affordable large housing market.
Also ranking near the top of the most affordable major metro housing markets were a host of other areas. Contact me if you would like more information.

Is Immigration important to our economies? It is to Canada

According to Statistics Canada, the population of Canada has grown by more than 129,300 people from July 2010 to October 2010. More than 65% of those people were new immigrants to the country. Within those 3 months, 84,200 new immigrants arrived in Canada. This growth in immigration can be attributed to the strengthening Canadian economy. As new jobs are being added to the market, Canada is looking for skilled workers to immigrate to the country. The Government of Canada is expecting to issue approximately 265,000 Canadian visas by the end of this year.
Although most provinces saw some growth rate in their population, certain provinces such as Quebec, Prince Edward Island, and Manitoba have been receiving the highest number of immigrants. During the past few years, Quebec has received almost 17,000 new immigrants, while Manitoba has received almost 16,000 immigrants. Provinces are attributing the influx of immigrants to their successful Provincial Nominee Programs. Nearly 75% of immigrants who arrived in Manitoba had immigrated to Canada through the Manitoba PNP.
As the Federal and Provincial governments continue to adjust their immigration programs to attract even more people to the country, Canada can expect its population to continue to grow in the coming years.

The world's smallest house (7ft wide, 47ft long) in Toronto

At just over seven feet wide and 47 feet long, this tiny building is one of the smallest functioning homes in the world at 312-square foot 'Little House' of Toronto, Canada.

With a front drive that parks two family sized cars - even though the house itself is barely big enough to swing a cat round - it still comes with all amenities. As well as its ample 2.36m-high ceilings, the Little House also has a decent sized basement for storage space.It has a full bathroom, a kitchen and a decent sized bedroom with a fold up bed that gives more room when up. 'This is a great and historic purchase.'

Built in 1912, the Little Home has become a celebrity in its own right over the past 98 years. Talk show host Ellen Degeneres has even expressed an interest!