Pappas Realty Co... "Commercial Real Estate...Exclusively" in Northeast Ohio since 1957

Tuesday, May 30, 2006

Apartment rents expected to rise 5%

By Noelle Knox, USA TODAY Tue May 30, 6:55 AM ET
If you're a renter trying to save for a down payment, or you're just trying to move out of your parents' home, it'll likely get harder this year. Rents are rising faster than they have in six years.

Thursday, May 25, 2006

New signs of cooling housing market

By MARTIN CRUTSINGER, AP Economics Writer Thu May 25, 2:10 PM ET
WASHINGTON - Sales of existing homes fell in April, and the price posted the smallest increase in 4 1/2 years, new signals that the nation's once red-hot housing market has cooled.

Wednesday, May 24, 2006

Washington Mutual lays off 1,400 workers

SEATTLE - Washington Mutual Inc., the nation's largest savings and loan, has notified 1,400 workers in Washington and Florida that they will lose their jobs as part of the company's cost-saving strategy.

Monday, May 22, 2006

'Perfect Balance' Spawns 'Year of The Apartment'

Rents heading up in '06
Apartments may get significantly more expensive to rent this year.
By Les Christie, staff writer.

NEW YORK ( - Apartment rents are headed up in 2006. .
After a few years of little movement, residential rents are expected to climb substantially, even as home prices may finally be plateauing. "This will be a good year for landlords," says Greg Willett, vice president for research and analysis at M/PF YieldStar, a consulting firm serving the multi- housing industry. "There will be rent growth as vacancy rates come down. Landlords feel comfortable enough now to start raising rents again." According to Willett, whose firm tracks 57 markets, rents will likely rise between 5 percent and 6 percent in 2006. .
Several factors are contributing to landlord optimism, but what they all boil down to is that more Americans are being driven into the apartment market due to the increased expense of home ownership. .

That was then, this is now.
Home prices appreciated at an average of nearly 9 percent a year from 2001 to 2005, far surpassing increases in rents, which averaged only 2 or 3 percent a year. The soft rental market coincided with the housing boom, which drew millions of Americans into home ownership, reducing the demand for apartments. But the hot home market is cooling off this year. David Lereah of the National Association of Realtors is predicting home price increases around 5% for 2006 – about the same amount that rents will rise. .

The higher end of the rental market took an especially hard hit during the housing boom as more affluent Americans saw the value of buying real property as an investment as well as a place to live. "There has been a big cut in the number of higher income renters" says Willett. "Many people used to be renters by choice. Now most renters are by necessity." Those renters by necessity will probably be joined by many more over the next months. High home prices and rising interest rates mean that hundreds of thousands of potential homebuyers cannot afford to buy a single-family home or condo, according to Brad Inman, founder of Inman News Service, which covers the real estate industry. "Not only that," he says, "but lenders are tightening up their lending criteria, leading to fewer qualified buyers." .

Those who can't buy will rent. Many of the places where rents are rising the fastest are in very hot housing markets. New York City is the most expensive place to rent an apartment in the United States – $2,400 a month on average (through December 31), according to Reis Client Services. New York also has seen condo prices explode. .

In Manhattan, condos and co-ops average $1.3 million, and rents average $3,142 a month, according to data supplied by Citi Habitats, a New York residential broker. M/PF YieldStar data shows tenants in many other cities also paying in the quadruple-digit range every month. The mean rent in San Francisco is $1,669, San Jose is $1,429 and Los Angeles, $1,422. Bostonians pay an average of $1,350 a month and renters in Washington, D.C. pay $1,188. All those cities have experienced substantial home price increases in the 2000s. The fastest-rising rents in any U.S. city for the 12 months ending March 31 were in Fort Lauderdale, Florida. Rents rose 12 percent there to $1,151. .

That was still considerably less than the increase in Fort Lauderdale home prices during 2005, when the median price soared 28.8 percent, according to the latest data from the Office of Federal Housing Enterprise Oversight. (First quarter statistics are not yet available from OFHEO.) Other illustrations of rental markets lagging home prices occurred in West Palm Beach, Florida, where selling prices jumped 28.3 percent during 2005, while rents rose 12.3 percent to $1,104. West Palm rents stood at $1,107 after the first quarter of 2005, up 10.5 percent year-over-year. .

Some of the most sluggish rental markets had little sale price appreciation in 2005. In Greensboro, North Carolina, where rents fell by 3.7 percent in the 12 months ended March 31, home prices rose only 4.3 percent last year. In Raleigh, prices inched up at a slightly faster rate, 4.7 percent in 2005, but rents still declined by 2 percent through March 31. .

Regionally, the lowest rents were in the Midwest, where they averaged $820 The South was a close second at $826 and the Northeast came in at $1,119. The West not only averaged the highest apartment rents, at $1,138, but rents grew 6 percent over the past 12 months, much higher than did the second- place South, where increases averaged 3.9 percent, the same as the nation as a whole. .

Are commercial real estate loans going to hurt banks?

By Sue Kirchhoff, USA TODAY

Commercial real estate has surged after several down years. That's good news for the economy and firms like Collman's. But it's worrying federal officials, who note many banks are carrying a heavier concentration of real estate loans today than they did during a heady 1980s boom — a boom that ended in a bust, forcing many lenders out of business.

Friday, May 19, 2006

Former Fed Chair Says Housing Boom Over

By JOE BEL BRUNO, AP Business Writer Fri May 19, 1:04 AM ET
NEW YORK - Former Federal Reserve' Chairman Alan Greenspan' said Thursday that Americans' consumption could taper off somewhat now that the U.S. housing market's "extraordinary boom" has ended.

Boom May Be Over, But Landing Will Be Soft

(May 19, 2006) -- WASHINGTON – The five-year boom in home sales may be over, but strong demographics and job growth promise only a short-term slowdown in most U.S. markets, NAR’s Chief Economist David Lereah told REALTORS® at Thursday’s Economic Issues & Residential Real Estate Business Trends Forum. His presentation took place during the 2006 REALTORS® Midyear Legislative Meetings & Trade Expo.

Upscale restaurant in Akron is closed

Landlord looking for new tenant to replace Jacob Good downtown

By Dave Scott
Beacon Journal business writer

Wednesday, May 10, 2006

Fed Raises Key Interest Rate to 5 Percent

Wednesday May 10, 2:36 pm ET By Martin Crutsinger, AP Economics Writer

Federal Reserve Raises Key Interest Rate to 5 Percent, the Highest Level in 5 Years

Tuesday, May 09, 2006

Ameriquest To Close 229 Branches and Lay Off 3,800

Tuesday, May 02, 2006 -ORANGE, CA – ACC Capital Holdings (ACH) the parent company of Ameriquest Mortgage Company and Town and Country Credit announced that it is closing 229 retail locations and will lay off 3,800 employees. - Story from Originator Times

Friday, May 05, 2006

Is it time to cash out?

Thursday May 4, 6:00 am ET Dana Dratch

If your house or investment has been going up, up, up in value, might it be a good time to sell -- before it starts going down, down, down?