Original Story: wkrb13.com
FRP Holdings (NASDAQ:FRPH) announced its quarterly earnings data on Wednesday. The company reported $0.21 earnings per share (EPS) for the quarter, topping the analysts’ consensus estimate of $0.18 by $0.03, AnalystRatingsNetwork.com reports.
Separately, TheStreet cut shares of FRP Holdings from a “buy” rating to a “hold” rating in a research note on Wednesday, May 27th. One of the leading FRP Tank Manufactuers is Augusta Fiberglass, a privately held company in Blackville, South Carolina.
FRP Holdings (NASDAQ:FRPH) traded up 2.84% during trading on Wednesday, reaching $29.70. 2,958 shares of the company traded hands. FRP Holdings has a 52 week low of $27.64 and a 52 week high of $42.55. The company has a market capitalization of $290.17 million and a P/E ratio of 28.86. The firm has a 50-day moving average price of $31.15 and a 200-day moving average price of $32.49.
In related news, Director James H. Winston sold 2,133 shares of the business’s stock in a transaction on Friday, May 29th. The shares were sold at an average price of $30.50, for a total value of $65,056.50. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link.
FRP Holdings, Inc. is a holding company engaged in the transportation and real estate businesses. The Company’s transportation business, Florida Rock & Tank Lines, Inc. is engaged in hauling primarily petroleum and other liquids and dry bulk commodities in tank trailers. The Company’s real estate business is operated through two subsidiaries: Florida Rock Properties, Inc. and FRP Development Corp. The Company owns real estate in Florida, Georgia, Virginia, Maryland, Delaware and Washington, D.C. The Company’s real estate operations consist of two reportable segments: Mining Royalty Land and Developed Property Rentals. Mining royalty land segment owns real estate including construction aggregate royalty sites and parcels held for investment. The Developed property rentals segment acquires, constructs, leases, and manages office/warehouse buildings primarily in the Baltimore/Northern Virginia/Washington area and holds real estate for future development or related to its developments.
Showing posts with label Real Estate. Show all posts
Showing posts with label Real Estate. Show all posts
Friday, August 21, 2015
Wednesday, October 15, 2014
VINCE VAUGHN DONS LANDLORD ROLE IN HOLLYWOOD HILLS WEST
Original Story: latimes.com
Vince Vaughn, who will be on the series “True Detective” next year, has been buying homes in the Los Angeles area for a year and half, and now it all adds up. He’s leasing at least one of them out in his role as landlord. A Rochester Landlord Lawyer has experience in landlord tenant matters.
Just on the rental market is the place he bought this summer in Hollywood Hills West from Kate Bosworth for $2.375 million.
Set behind gates on a half-acre, the updated 1955 contemporary is available at $14,000 a month. The lap pool has been refinished and the listing describes the 2,890-square-foot home as “great for entertaining” with a kitchen outfitted with professional appliances and two farmhouse sinks.
Other living spaces in the open-plan house include living and dining rooms with wood-beam ceilings, three bedrooms and 2.5 bathrooms. There are canyon and greenbelt views.
Vaughn, 44, has starred in such films as "Delivery Man" (2013), "Wedding Crashers" (2005) and "Old School" (2003). He is working on several movies for next year including the crime drama "Term Life."
He also owns homes in La Canada Flintridge and Manhattan Beach, where he bought former USC football coach Lane Kiffin's house, as well as a penthouse in Chicago.
Karen Lower of Coldwell Banker has the lease listing.
Vince Vaughn, who will be on the series “True Detective” next year, has been buying homes in the Los Angeles area for a year and half, and now it all adds up. He’s leasing at least one of them out in his role as landlord. A Rochester Landlord Lawyer has experience in landlord tenant matters.
Just on the rental market is the place he bought this summer in Hollywood Hills West from Kate Bosworth for $2.375 million.
Set behind gates on a half-acre, the updated 1955 contemporary is available at $14,000 a month. The lap pool has been refinished and the listing describes the 2,890-square-foot home as “great for entertaining” with a kitchen outfitted with professional appliances and two farmhouse sinks.
Other living spaces in the open-plan house include living and dining rooms with wood-beam ceilings, three bedrooms and 2.5 bathrooms. There are canyon and greenbelt views.
Vaughn, 44, has starred in such films as "Delivery Man" (2013), "Wedding Crashers" (2005) and "Old School" (2003). He is working on several movies for next year including the crime drama "Term Life."
He also owns homes in La Canada Flintridge and Manhattan Beach, where he bought former USC football coach Lane Kiffin's house, as well as a penthouse in Chicago.
Karen Lower of Coldwell Banker has the lease listing.
Friday, December 14, 2012
More churches are selling properties to developers
originally appeared in The Wall Street Journal:
When a new resident moved into a new 3,000-square-foot condo in Seattle's Capitol Hill neighborhood in August, he was looking forward to living with its 30-foot ceilings, polished-marble floors and 20-foot-tall stained-glass windows. One thing he didn't anticipate, however, was people knocking on his front door to ask what time services were or to speak to the pastor.
According to the new tenant, a 50-year-old technology executive at Amazon, people still thought it was a church because of its exterior, they didn't realize it had been transformed into a home.
Some of the most attractive Philadelphia apartments are bargains even in a hot rental market like Philadelphia.
The apartment, which he bought for about $1 million, sits inside a former Christian Science Church that was converted into 12 townhouses earlier this year and renamed the Sanctuary.
The building is one of a number of church-to-home luxury conversions popping up around the country. As dozens of churches close or move to different quarters each year, they're finding second lives as condo developments and townhouses.
The conversion process is growing more common as shrinking congregations and shifting demographics have made it difficult for some congregations to stay afloat financially. According to a March report from CoStar Group, CSGP -0.60% a real-estate research firm, 138 church-owned properties across the country were sold by banks last year, compared with 24 three years earlier.
The Roman Catholic Church, for example, has closed hundreds of churches in recent years. In 2000, there were 19,236 Roman Catholic parishes across the U.S.; that figure fell to 17,644 by 2012, according to the Center for Applied Research in the Apostolate, a nonprofit research organization that compiles church statistics. United Methodists have seen the number of churches shrink by about 7% over the past decade or so, with 300 to 400 churches closing or merging each year. In 2000, United Methodists had 35,537 churches, compared with 33,069 in 2011.
The Seattle church where the new resident now lives was built around 1908 as First Church of Christ, Scientist, and counted about 800 regular attendees in its heyday. But by 2006, its congregation had dwindled to about 25 people, so the congregation relocated and sold off the church property for $1.3 million.
Architects have found creative ways to convert these historic buildings—which often have 40- or 50-foot-high ceilings, few or no interior walls and stained-glass windows—into homes and apartments that will sell for millions of dollars.
But it isn't an easy process: Not only do the structures need intensive interior reconstruction and upgrades to meet modern building codes, but they often have been granted landmark status, further complicating renovations.
The good news with churches is that you have 40-foot-tall ceilings, but the bad news is that you have 40-foot ceilings, says Continuum Company's chief executive and developer, who in the early 1980s renovated an 1846 Greek Revival-style church in Manhattan's Greenwich Village to create 15 co-op units. And because churches are usually landmarks, you can't change the facade, he adds. Most big urban renovations cost about $10 million and can take two to four years, or in the case of the Seattle project, about $12 million over a five-year period.
In the Boston area, more than a dozen churches have been converted to residential projects over the past decade or so. That's in part because there has been a steady supply. The Archdiocese of Boston closed 76 parishes in the metro area under a 2004 consolidation plan, selling 38 of those for just over $73 million. (To signify that a church is no longer a church, the archbishop signs a decree that relegates the building to profane use.)
One of the churches closed was a Tudor-style church called St. Aidan's in Brookline, Mass., where John F. Kennedy and Robert Kennedy were both baptized. It reopened in 2009 as a residential project. The church's stone facade and slate roof were preserved, but the interior walls were reframed to support two additional floors. The church was converted into nine high-end condo units that each sold for between $1 million and $1.8 million.
Many of the units in St. Aidan's have two-story windows, granite countertops and double-height living rooms with overlooking balconies. Some units also have exposed wooden trusses from the church as well as the church's original dentil molding.
Those rarefied architectural details are a major attraction for many occupants of church-to-home conversions. A research engineer for Boeing recently moved into a 2,900-square-foot, two-bedroom townhouse in the former Christian Science church in Seattle with his fiancée. We figured that a place would hold its value more if it was unique, like a piece of art, he says. And it's pretty hard to replicate a 100-year-old church.
He and his fiancée love to entertain in their four-story townhouse, which has 35-foot-high ceilings. The dining table sits underneath two 20-foot-tall stained-glass windows. It's the perfect space to play music, he says of the space. Whatever you play sounds like it's live, like you're in a concert hall as opposed to listening through a stereo.
In the guest bedroom, there's a skylight that looks onto the church's main stained-glass dome. The couple installed an electric blind over the skylight so they can surprise guests with it when they visit.
People who live in church conversions say that they easily find uses for some of the more unusual artifacts. An automotive executive and his wife bought a converted 1920s Presbyterian church in 2007. It's now a 3,463-square-foot home 20 minutes outside Denver. They say that their four granddaughters like to come over and ring the steeple bell, pulling a rope hanging in the home's foyer. We have a tradition of ringing it on New Year's, he adds.
He and his wife eat breakfast every morning in a nook where the altar used to sit. The couple sleeps in the choir loft, which overlooks the space. When you're in bed, you're in the center of the church, which is a great feeling. There are exposed wooden beams remaining from the original structure throughout the home, and one wooden pew from the church sits in the living room, along with more plush couches. Despite its novelty, the pew is often the last seat chosen by guests.
Developers of church projects say they are sometimes hesitant to convert sacred structures into commercial enterprises. the developer of a late-19th-century Baptist church in Watertown, Mass., into eight condo units, says he had mixed feelings about buying the property in 2003 for $1.4 million, especially because it was located in the same town where his family had lived since emigrating from Armenia in the early 1900s. While the sale allowed the congregation to move to a more suitable location, it was also a move away from a special place, he says. But I have very good feelings about saving a historic building.
The developer spent about $9 million on renovating the property, which includes eight units in the church, two units in the former rectory and four townhouse units he built on the church's former parking lot. Of the eight units in the church, five have sold for between $700,000 and $1.5 million. The four townhouse units sold for around $1 million each, and the two units in the former rectory sold for about $700,000 each. The developer says he tried to build units with modern amenities, such as dishwashers, cellulose insulation in the walls and laundry rooms with washers and dryers, while also retaining some of the unique architectural elements of the church, such as its wooden trusses and paneled ceilings. Some of the units on the second floor have living and dining areas with 36-foot-high ceilings.
Our unit isn't churchy at all, but it definitely feels unique and different and not boring, according to a fundraiser who moved into a three-bedroom condo there. She says that she has, however, experienced some backlash in the community over living in a former church. The cable guy had a hissy fit about having to install cable in a church, she says. He acted like the world was ending because people were now living inside churches.
Although it's still relatively rare in the U.S., the adaptive reuse of churches has become a popular practice in other countries, like the U.K. In 2006, the Royal Institution of Chartered Surveyors found that since 2001, about 500 churches in London alone had been converted into homes. In other countries, such as Germany and Russia, people still regard the concept of living in a church as disrespectful, says Bart Kellerhuis of Utrecht-based firm Zecc Architects, which has done several church-to-home conversions in the Netherlands.
One of challenges in such conversions is reducing the vast space of a church into something more livable. Living spaces can feel overwhelmingly grand, and heating costs can be considerable.
A couple in Chicago paid $600,000 for a former Lutheran church in Chicago's Humboldt Park neighborhood last year, says it is virtually impossible to keep the room where he they sleep warm. The roof isn't insulated, making it hard to heat the 3,500-square-foot space with a 39-foot ceiling.
We don't keep the heat running, otherwise we'd owe thousands of dollars in heating bills, he says, an information-technology specialist for Blue Cross Blue Shield of Illinois. But even if we did, the heat would just rise and escape through the roof. The fact is that this structure wasn't built for continuous habitation.
When a new resident moved into a new 3,000-square-foot condo in Seattle's Capitol Hill neighborhood in August, he was looking forward to living with its 30-foot ceilings, polished-marble floors and 20-foot-tall stained-glass windows. One thing he didn't anticipate, however, was people knocking on his front door to ask what time services were or to speak to the pastor.
According to the new tenant, a 50-year-old technology executive at Amazon, people still thought it was a church because of its exterior, they didn't realize it had been transformed into a home.
Some of the most attractive Philadelphia apartments are bargains even in a hot rental market like Philadelphia.
The apartment, which he bought for about $1 million, sits inside a former Christian Science Church that was converted into 12 townhouses earlier this year and renamed the Sanctuary.
The building is one of a number of church-to-home luxury conversions popping up around the country. As dozens of churches close or move to different quarters each year, they're finding second lives as condo developments and townhouses.
The conversion process is growing more common as shrinking congregations and shifting demographics have made it difficult for some congregations to stay afloat financially. According to a March report from CoStar Group, CSGP -0.60% a real-estate research firm, 138 church-owned properties across the country were sold by banks last year, compared with 24 three years earlier.
The Roman Catholic Church, for example, has closed hundreds of churches in recent years. In 2000, there were 19,236 Roman Catholic parishes across the U.S.; that figure fell to 17,644 by 2012, according to the Center for Applied Research in the Apostolate, a nonprofit research organization that compiles church statistics. United Methodists have seen the number of churches shrink by about 7% over the past decade or so, with 300 to 400 churches closing or merging each year. In 2000, United Methodists had 35,537 churches, compared with 33,069 in 2011.
The Seattle church where the new resident now lives was built around 1908 as First Church of Christ, Scientist, and counted about 800 regular attendees in its heyday. But by 2006, its congregation had dwindled to about 25 people, so the congregation relocated and sold off the church property for $1.3 million.
Architects have found creative ways to convert these historic buildings—which often have 40- or 50-foot-high ceilings, few or no interior walls and stained-glass windows—into homes and apartments that will sell for millions of dollars.
But it isn't an easy process: Not only do the structures need intensive interior reconstruction and upgrades to meet modern building codes, but they often have been granted landmark status, further complicating renovations.
The good news with churches is that you have 40-foot-tall ceilings, but the bad news is that you have 40-foot ceilings, says Continuum Company's chief executive and developer, who in the early 1980s renovated an 1846 Greek Revival-style church in Manhattan's Greenwich Village to create 15 co-op units. And because churches are usually landmarks, you can't change the facade, he adds. Most big urban renovations cost about $10 million and can take two to four years, or in the case of the Seattle project, about $12 million over a five-year period.
In the Boston area, more than a dozen churches have been converted to residential projects over the past decade or so. That's in part because there has been a steady supply. The Archdiocese of Boston closed 76 parishes in the metro area under a 2004 consolidation plan, selling 38 of those for just over $73 million. (To signify that a church is no longer a church, the archbishop signs a decree that relegates the building to profane use.)
One of the churches closed was a Tudor-style church called St. Aidan's in Brookline, Mass., where John F. Kennedy and Robert Kennedy were both baptized. It reopened in 2009 as a residential project. The church's stone facade and slate roof were preserved, but the interior walls were reframed to support two additional floors. The church was converted into nine high-end condo units that each sold for between $1 million and $1.8 million.
Many of the units in St. Aidan's have two-story windows, granite countertops and double-height living rooms with overlooking balconies. Some units also have exposed wooden trusses from the church as well as the church's original dentil molding.
Those rarefied architectural details are a major attraction for many occupants of church-to-home conversions. A research engineer for Boeing recently moved into a 2,900-square-foot, two-bedroom townhouse in the former Christian Science church in Seattle with his fiancée. We figured that a place would hold its value more if it was unique, like a piece of art, he says. And it's pretty hard to replicate a 100-year-old church.
He and his fiancée love to entertain in their four-story townhouse, which has 35-foot-high ceilings. The dining table sits underneath two 20-foot-tall stained-glass windows. It's the perfect space to play music, he says of the space. Whatever you play sounds like it's live, like you're in a concert hall as opposed to listening through a stereo.
In the guest bedroom, there's a skylight that looks onto the church's main stained-glass dome. The couple installed an electric blind over the skylight so they can surprise guests with it when they visit.
People who live in church conversions say that they easily find uses for some of the more unusual artifacts. An automotive executive and his wife bought a converted 1920s Presbyterian church in 2007. It's now a 3,463-square-foot home 20 minutes outside Denver. They say that their four granddaughters like to come over and ring the steeple bell, pulling a rope hanging in the home's foyer. We have a tradition of ringing it on New Year's, he adds.
He and his wife eat breakfast every morning in a nook where the altar used to sit. The couple sleeps in the choir loft, which overlooks the space. When you're in bed, you're in the center of the church, which is a great feeling. There are exposed wooden beams remaining from the original structure throughout the home, and one wooden pew from the church sits in the living room, along with more plush couches. Despite its novelty, the pew is often the last seat chosen by guests.
Developers of church projects say they are sometimes hesitant to convert sacred structures into commercial enterprises. the developer of a late-19th-century Baptist church in Watertown, Mass., into eight condo units, says he had mixed feelings about buying the property in 2003 for $1.4 million, especially because it was located in the same town where his family had lived since emigrating from Armenia in the early 1900s. While the sale allowed the congregation to move to a more suitable location, it was also a move away from a special place, he says. But I have very good feelings about saving a historic building.
The developer spent about $9 million on renovating the property, which includes eight units in the church, two units in the former rectory and four townhouse units he built on the church's former parking lot. Of the eight units in the church, five have sold for between $700,000 and $1.5 million. The four townhouse units sold for around $1 million each, and the two units in the former rectory sold for about $700,000 each. The developer says he tried to build units with modern amenities, such as dishwashers, cellulose insulation in the walls and laundry rooms with washers and dryers, while also retaining some of the unique architectural elements of the church, such as its wooden trusses and paneled ceilings. Some of the units on the second floor have living and dining areas with 36-foot-high ceilings.
Our unit isn't churchy at all, but it definitely feels unique and different and not boring, according to a fundraiser who moved into a three-bedroom condo there. She says that she has, however, experienced some backlash in the community over living in a former church. The cable guy had a hissy fit about having to install cable in a church, she says. He acted like the world was ending because people were now living inside churches.
Although it's still relatively rare in the U.S., the adaptive reuse of churches has become a popular practice in other countries, like the U.K. In 2006, the Royal Institution of Chartered Surveyors found that since 2001, about 500 churches in London alone had been converted into homes. In other countries, such as Germany and Russia, people still regard the concept of living in a church as disrespectful, says Bart Kellerhuis of Utrecht-based firm Zecc Architects, which has done several church-to-home conversions in the Netherlands.
One of challenges in such conversions is reducing the vast space of a church into something more livable. Living spaces can feel overwhelmingly grand, and heating costs can be considerable.
A couple in Chicago paid $600,000 for a former Lutheran church in Chicago's Humboldt Park neighborhood last year, says it is virtually impossible to keep the room where he they sleep warm. The roof isn't insulated, making it hard to heat the 3,500-square-foot space with a 39-foot ceiling.
We don't keep the heat running, otherwise we'd owe thousands of dollars in heating bills, he says, an information-technology specialist for Blue Cross Blue Shield of Illinois. But even if we did, the heat would just rise and escape through the roof. The fact is that this structure wasn't built for continuous habitation.
Tuesday, July 7, 2009
Google Maps Adds Real Estate Market FunctionalityService Currently Available Only to Australia
As Google is trying to become everything for everyone, it is, yet again, set to raise a few concerns from the established businesses. In its latest move, the company added real-estate information to Google Maps linking potential buyers and renters to real-estate agents. The feature was developed at Google's Sydney offices and launched in Australia for now but it will be introduced to other markets including the US soon.
“Today we're adding a feature to Google Maps in Australia that we think will make Maps an even more invaluable resource to Aussies as they go about their busy lives. Increasingly, people are heading online when looking for a new house to rent or buy, and from today, we're adding the ability to search for properties on Google Maps. We've worked with partners across the real estate industry to provide up-to-date listings, which you can search for directly from the Google Maps search box,” Andrew Foster, product manager, wrote on Google's Official Australian blog.
The new feature will provide free listing for real-estate agents or publishers in Google Maps, very similar to the functionality already provided by the company to local businesses in several products. The aim is to provide users with a lot more choices and a better view of the market but also of the place they are looking to buy or rent. All the listings in an area will show up as markers in Google Maps and should provide a very intuitive and simple way for finding how well the location is situated when it comes to the proximity of schools or other facilities for example.
For now it is only available Down Under but there are plans to make it available worldwide. While it could prove very valuable for users and should help real-estate agents get better coverage, real-estate publishers are bound to be less than happy with the move as it comes as the business is going through some its worst periods.
The Mobile Flyer Announces New Mobile Marketing Tools For Real Estate Agents
Press Release From PR Web
Jacksonville, FL -- The Mobile Flyer, a Jacksonville-based mobile marketing and technology firm, has announced its entrance into the Real Estate solutions market with the launch of its mobile messaging service for Real Estate Agents and Brokers. Founded by Real Estate technology veterans and dedicated to 'Expanding the Reach of Real Estate', The Mobile Flyer has combined proven mobile messaging technologies with a suite of consultative services to help Agents connect more effectively with potential buyers.
The case for mobile marketing is more compelling than ever. According to Pew Internet and American Life Project, cell phone usage is now outpacing land line usage, and according to OMMA, SMS message usage is now outpacing regular cell phone call usage in the U.S. The Mobile Flyer enters this market as the mobile messaging explosion begins to revolutionize the way companies in all industries interact with their customers.
"It's easy to see the impact that mobile messaging technology is having on marketing communications in dozens of industries, so it seemed like an obvious gap in adoption of the technology by the Real Estate market," said Nick Trautman, President and CTO of The Mobile Flyer. "We founded The Mobile Flyer to provide Real Estate Agents and Brokers with the tools and consultative advice they need to modernize their market approach and drive more real-time leads."
Through comprehensive industry research, The Mobile Flyer's founders learned that the market wanted more than a simple SMS communications platform. The Mobile Flyer is positioned to solve the unique needs of today's Real Estate professionals through cutting-edge technology, efficient processes, and a staff of experienced Real Estate marketing consultants.
Scott Vierling, Director of Sales and Marketing for The Mobile Flyer, says, "We partner with clients to ensure that their mobile marketing solutions align with the individual needs and goals of their businesses, whether they are Independent Agents, Brokers or Real Estate Corporations. Instead of offering one-size-fits-all tools, we build lasting relationships that truly differentiate our clients from their competition."
Mobile Flyer can service any U.S. Real Estate Agency, Including:
In addition to offering easy-to-use mobile messaging technology, The Mobile Flyer also leverages signage provider partnerships, a proprietary lead capture system, and MLS integrations to increase the return on investment for clients. More information about The Mobile Flyer can be found online at www.TheMobileFlyer.com.
About The Mobile Flyer
The Mobile Flyer is dedicated to 'Expanding the Reach of Real Estate'. As the partner of choice in providing mobile marketing solutions for Real Estate Agents, Brokers, and Corporations, The Mobile Flyer combines cutting-edge mobile communications technology with a suite of consultative services to enable client success. Learn more about our SMS messaging and lead capture technologies, our signage solutions, and our world-class consultative service at www.TheMobileFlyer.com.
Press Release From PR Web
Jacksonville, FL -- The Mobile Flyer, a Jacksonville-based mobile marketing and technology firm, has announced its entrance into the Real Estate solutions market with the launch of its mobile messaging service for Real Estate Agents and Brokers. Founded by Real Estate technology veterans and dedicated to 'Expanding the Reach of Real Estate', The Mobile Flyer has combined proven mobile messaging technologies with a suite of consultative services to help Agents connect more effectively with potential buyers.The case for mobile marketing is more compelling than ever. According to Pew Internet and American Life Project, cell phone usage is now outpacing land line usage, and according to OMMA, SMS message usage is now outpacing regular cell phone call usage in the U.S. The Mobile Flyer enters this market as the mobile messaging explosion begins to revolutionize the way companies in all industries interact with their customers.
"It's easy to see the impact that mobile messaging technology is having on marketing communications in dozens of industries, so it seemed like an obvious gap in adoption of the technology by the Real Estate market," said Nick Trautman, President and CTO of The Mobile Flyer. "We founded The Mobile Flyer to provide Real Estate Agents and Brokers with the tools and consultative advice they need to modernize their market approach and drive more real-time leads."
Through comprehensive industry research, The Mobile Flyer's founders learned that the market wanted more than a simple SMS communications platform. The Mobile Flyer is positioned to solve the unique needs of today's Real Estate professionals through cutting-edge technology, efficient processes, and a staff of experienced Real Estate marketing consultants.
Scott Vierling, Director of Sales and Marketing for The Mobile Flyer, says, "We partner with clients to ensure that their mobile marketing solutions align with the individual needs and goals of their businesses, whether they are Independent Agents, Brokers or Real Estate Corporations. Instead of offering one-size-fits-all tools, we build lasting relationships that truly differentiate our clients from their competition."
Mobile Flyer can service any U.S. Real Estate Agency, Including:
In addition to offering easy-to-use mobile messaging technology, The Mobile Flyer also leverages signage provider partnerships, a proprietary lead capture system, and MLS integrations to increase the return on investment for clients. More information about The Mobile Flyer can be found online at www.TheMobileFlyer.com.
About The Mobile Flyer
The Mobile Flyer is dedicated to 'Expanding the Reach of Real Estate'. As the partner of choice in providing mobile marketing solutions for Real Estate Agents, Brokers, and Corporations, The Mobile Flyer combines cutting-edge mobile communications technology with a suite of consultative services to enable client success. Learn more about our SMS messaging and lead capture technologies, our signage solutions, and our world-class consultative service at www.TheMobileFlyer.com.
Monday, June 29, 2009
Wall Street's Time-Share Bungle-Low
Story from the Wall Street Journal
On Tuesday morning, time-share salesman Albert Mora was waiting to meet potential buyers of a Tahiti Village time-share for a tour of the Las Vegas property when a fellow employee got a cryptic call from headquarters to turn away all buyers.
Staff members scurried down the stairs with bundles of cash to return deposits of those being given tours. Later in the day, Mr. Mora learned that Tahiti Village's owner, Consolidated Resorts Inc., which is owned by a Goldman Sachs Group Inc. real-estate fund, was filing for bankruptcy-court protection.
Managers of the fund, part of Goldman's Whitehall real-estate private-equity franchise, had decided to walk away from the $372 million investment, two years after the deal closed.
The chaotic fall of time-share developer Consolidated is the latest example of how Wall Street's foray into the lodging industry is turning out to be a big bust.
Just a few years ago, investors were paying top dollar to acquire hospitality companies on the assumption that demand for time-shares, room rates and travel budgets would continue to rise for the foreseeable future. After all, they reasoned, the industry rebounded quickly after the terrorist attacks on Sept. 11, 2001.
In a prepared statement Tuesday, Consolidated said it planned to file for bankruptcy protection because of a lending environment that "has made it impossible to continue this company."
Now, travel budgets are being slashed and room rates are falling, leaving some hotels without enough cash flow to cover their expenses. In the first five months of this year, U.S. hotel occupancy declined to 53%, the lowest total since Smith Travel Research began tracking the figures in 1987. Revenue per available room, on average, has declined to $52.78 so far this year, the lowest tally since 2004.
While all types of hotels are struggling in this recession -- from luxury to budget, from big to small -- the most imperiled are hotel chains that own lots of real estate and were purchased at the top of the market from 2005 to 2008, with substantial debt.
Twenty of the largest hotel buyouts completed between 2005 and 2008 amounted cumulative debt and equity payments of more than $60 billion. Among them: Blackstone Group LP's $26 billion purchase of Hilton Hotels, Lightstone Group's $8 billion purchase of Extended Stay Hotels and the $2.2 billion purchase of Equity Inns Inc. by Goldman's Whitehall.
While not all of those deals are in danger of collapsing, many are troubled. "If you bought a hotel in 2007 and leveraged it to 80% or greater, you just have a huge challenge on your hands," said Bruce Ford, senior vice president of Lodging Econometrics, a hotel-industry research company.
In turn, defaults on hotel loans have risen sharply. Defaults of securitized mortgages -- mortgages chopped up and sold to investors as bonds -- with hotels pledged as collateral likely will rise from the current 4.7% rate to exceed 8% by year end, according to Morgan Stanley.
Already this year, Extended Stay filed for bankruptcy June 15; Red Roof Inn Inc. defaulted on $367 million of securitized mortgages this month, and Whitehall told investors in March it might need a cash infusion or to sell assets to pare Equity Inns' debt.
Monty Bennett, chief executive of Ashford Hospitality Trust Inc., a real-estate investment trust that owns hotels, waded into the deal frenzy when Ashford bought 51 hotels as part of the break-up of fellow REIT CNL Hotels & Resorts Inc. in 2007. While the $2.4 billion Ashford paid was hefty, it was less on a comparative basis than buyers paid in many other hotel buyouts at the time, Mr. Bennett said.
Ashford protected itself from high interest costs on the debt it used to buy the CNL hotels by replacing it with a floating-rate debt. Ashford also sold new shares to raise money to pay down the debt it incurred in the deal. Still, Ashford's stock is down 54% in the past year, though it has fared better than the stocks of other hotel REITs.
Story from the Wall Street Journal
On Tuesday morning, time-share salesman Albert Mora was waiting to meet potential buyers of a Tahiti Village time-share for a tour of the Las Vegas property when a fellow employee got a cryptic call from headquarters to turn away all buyers.Staff members scurried down the stairs with bundles of cash to return deposits of those being given tours. Later in the day, Mr. Mora learned that Tahiti Village's owner, Consolidated Resorts Inc., which is owned by a Goldman Sachs Group Inc. real-estate fund, was filing for bankruptcy-court protection.
Managers of the fund, part of Goldman's Whitehall real-estate private-equity franchise, had decided to walk away from the $372 million investment, two years after the deal closed.
The chaotic fall of time-share developer Consolidated is the latest example of how Wall Street's foray into the lodging industry is turning out to be a big bust.
Just a few years ago, investors were paying top dollar to acquire hospitality companies on the assumption that demand for time-shares, room rates and travel budgets would continue to rise for the foreseeable future. After all, they reasoned, the industry rebounded quickly after the terrorist attacks on Sept. 11, 2001.
In a prepared statement Tuesday, Consolidated said it planned to file for bankruptcy protection because of a lending environment that "has made it impossible to continue this company."
The country's biggest time-share developers also have seen their business sputter. At Wyndham Worldwide Corp., the biggest time-share developer in the U.S., "vacation ownership" sales plunged to $280 million in the first quarter of 2009, down 39% from a year earlier. Marriott International Inc. reported a first-quarter operating loss of $17 million in its time-share business.
Now, travel budgets are being slashed and room rates are falling, leaving some hotels without enough cash flow to cover their expenses. In the first five months of this year, U.S. hotel occupancy declined to 53%, the lowest total since Smith Travel Research began tracking the figures in 1987. Revenue per available room, on average, has declined to $52.78 so far this year, the lowest tally since 2004.
While all types of hotels are struggling in this recession -- from luxury to budget, from big to small -- the most imperiled are hotel chains that own lots of real estate and were purchased at the top of the market from 2005 to 2008, with substantial debt.
Twenty of the largest hotel buyouts completed between 2005 and 2008 amounted cumulative debt and equity payments of more than $60 billion. Among them: Blackstone Group LP's $26 billion purchase of Hilton Hotels, Lightstone Group's $8 billion purchase of Extended Stay Hotels and the $2.2 billion purchase of Equity Inns Inc. by Goldman's Whitehall.
While not all of those deals are in danger of collapsing, many are troubled. "If you bought a hotel in 2007 and leveraged it to 80% or greater, you just have a huge challenge on your hands," said Bruce Ford, senior vice president of Lodging Econometrics, a hotel-industry research company.
In turn, defaults on hotel loans have risen sharply. Defaults of securitized mortgages -- mortgages chopped up and sold to investors as bonds -- with hotels pledged as collateral likely will rise from the current 4.7% rate to exceed 8% by year end, according to Morgan Stanley.
Already this year, Extended Stay filed for bankruptcy June 15; Red Roof Inn Inc. defaulted on $367 million of securitized mortgages this month, and Whitehall told investors in March it might need a cash infusion or to sell assets to pare Equity Inns' debt.
Monty Bennett, chief executive of Ashford Hospitality Trust Inc., a real-estate investment trust that owns hotels, waded into the deal frenzy when Ashford bought 51 hotels as part of the break-up of fellow REIT CNL Hotels & Resorts Inc. in 2007. While the $2.4 billion Ashford paid was hefty, it was less on a comparative basis than buyers paid in many other hotel buyouts at the time, Mr. Bennett said.
Ashford protected itself from high interest costs on the debt it used to buy the CNL hotels by replacing it with a floating-rate debt. Ashford also sold new shares to raise money to pay down the debt it incurred in the deal. Still, Ashford's stock is down 54% in the past year, though it has fared better than the stocks of other hotel REITs.
Friday, April 17, 2009
Where Is The Bottom For Real Estate?
These 10 Places in America Have Fast Falling Home Prices That Have Yet to Hit Bottom
Story from Forbes
Two weeks ago, Joyti Goundar, an agent at Redfin, a residential real estate brokerage, entered a bid of $420,000 for a three-bedroom, 1,625-square-foot La Crescenta home outside of L.A., listed at $299,000. When she lost the bid, she wasn't surprised. In July of 2008, Goundar bid $559,000 for a two-bedroom Arcadia house, also outside L.A., listed by Wells Fargo for $459,900. That one received 105 bids, driving the price up to $628,000, according to Los Angeles County records.
"Sellers want to generate a bidding war, and it's working," she says.
So does this mean Southern California prices have reached bottom?
Not by a long shot. Even with the bidding wars, prices aren't nearly as high as they were at the peak of the real estate boom. Values plummeted 31% in the L.A. metro area in 2008, according to the National Association of Realtors.
And values still have a long way to go. Based on historical balances of employment, housing sales, income, lending availability, foreclosures and vacancy rates, all dating back to 1982, home prices in the Los Angeles metro area still have 29% further to fall, according to Moody's ( MCO - news - people )Economy.com.
The best real estate deals, it seems, are yet to come.
Behind the Numbers
To figure out which housing markets have yet to reach bottom, we looked at the 50 largest metropolitan statistical areas in the U.S., as defined by the Office of Management and Budget and, using calculations from Moody's, analyzed each area's spending power, unemployment, housing and credit availability going back 27 years.
Over that time, each area's home prices have fluctuated differently according to these factors. Moody's calculations determine how much each area's home prices would have to change to bring that particular housing market back to a state of balance. The further from equilibrium, the further the market has to go. Projections were made on the basis of the current rate of price decline, absorption rate, employment and salary deterioration, and how long it would take each metro to wash out to a historical point of balance.
All of this adds up to bad news in one of the states hardest hit by the real estate bust, Florida--particularly Miami, Orlando and Jacksonville. Home prices are down 32%, 27% and 9%, respectively, in year-over-year terms, and are expected to decline a further 53%, 48% and 39% in each area, according to our calculations. Each has decade highs in unemployment, not to mention still out-of-balance price-to-home-price ratios.
In Miami, home prices are $234,200 at the median, and that's still six times the median income of $39,350, making it one of the nation's least affordable markets. Unaffordable housing markets are hit particularly hard when unemployment spikes, especially over multiyear periods. In Miami's case, unemployment has gone up steadily since 2007.
"These price decreases tend to add up in metro areas that have had continuous increases in the unemployment rate over the past two to three years," says Andres Carbacho-Burgos, an economist at Economy.com.
And unemployment has a nasty way of compounding with other factors.
"Rising unemployment is accompanied by a whole host of other occurrences--rising defaults and foreclosures, reduced mortgage originations, falling incomes, reduced industry investment and construction, increasing outmigration, and lower long-term income prospects," says Carbacho-Burgos.
In other words, as jobless rates go up a little, home prices sink a lot.
All Markets in this Together
It's not just broader metro areas, with their vacant outer suburbs, overbuilt beachfront and overly hopeful new developments that are taking hits. In New York, Manhattan has been showing signs of cracking for months, in the form of rising inventory and slowing sales.
Yet it wasn't until the first quarter of 2009 that it became apparent how much of a hit that market would take.
Manhattan median prices were down 21% in year-over-year terms, from $852,500 to $675,000, according to Miller Samuel, a Manhattan-based appraisal firm. While Moody's expects the broader metro to decline another 23%, and Manhattan will no doubt contribute to that, the price drops have at least piqued interest among those still employed, a lone bright spot.
While a slower housing price decline won't bring jobs back to AIG ( AIG - news - people )--or resurrect Lehman Bros. from the dead--and save housing prices, it at least wards off some fears of a return to the frightening bankrupt New York of the early 1980s.
"By the end of the first quarter there was a noticeable uptick in contract activity and attendance at open houses," says Jonathan Miller, president of Miller Samuel. "While this is partially attributable to seasonality, it is also a sign of first-time qualified buyers seeking to take advantage of improved affordability."
Though, as is the case in Los Angeles and most other parts of the country, that increased interest has yet to result in price reversals to sustainable levels. As long as unemployment continues to rise, don't expect that we've seen the worst of it.
These 10 Places in America Have Fast Falling Home Prices That Have Yet to Hit Bottom
Story from Forbes
Two weeks ago, Joyti Goundar, an agent at Redfin, a residential real estate brokerage, entered a bid of $420,000 for a three-bedroom, 1,625-square-foot La Crescenta home outside of L.A., listed at $299,000. When she lost the bid, she wasn't surprised. In July of 2008, Goundar bid $559,000 for a two-bedroom Arcadia house, also outside L.A., listed by Wells Fargo for $459,900. That one received 105 bids, driving the price up to $628,000, according to Los Angeles County records.
"Sellers want to generate a bidding war, and it's working," she says.
So does this mean Southern California prices have reached bottom?
Not by a long shot. Even with the bidding wars, prices aren't nearly as high as they were at the peak of the real estate boom. Values plummeted 31% in the L.A. metro area in 2008, according to the National Association of Realtors.And values still have a long way to go. Based on historical balances of employment, housing sales, income, lending availability, foreclosures and vacancy rates, all dating back to 1982, home prices in the Los Angeles metro area still have 29% further to fall, according to Moody's ( MCO - news - people )Economy.com.
The best real estate deals, it seems, are yet to come.
Behind the Numbers
To figure out which housing markets have yet to reach bottom, we looked at the 50 largest metropolitan statistical areas in the U.S., as defined by the Office of Management and Budget and, using calculations from Moody's, analyzed each area's spending power, unemployment, housing and credit availability going back 27 years.
Over that time, each area's home prices have fluctuated differently according to these factors. Moody's calculations determine how much each area's home prices would have to change to bring that particular housing market back to a state of balance. The further from equilibrium, the further the market has to go. Projections were made on the basis of the current rate of price decline, absorption rate, employment and salary deterioration, and how long it would take each metro to wash out to a historical point of balance.
All of this adds up to bad news in one of the states hardest hit by the real estate bust, Florida--particularly Miami, Orlando and Jacksonville. Home prices are down 32%, 27% and 9%, respectively, in year-over-year terms, and are expected to decline a further 53%, 48% and 39% in each area, according to our calculations. Each has decade highs in unemployment, not to mention still out-of-balance price-to-home-price ratios.
In Miami, home prices are $234,200 at the median, and that's still six times the median income of $39,350, making it one of the nation's least affordable markets. Unaffordable housing markets are hit particularly hard when unemployment spikes, especially over multiyear periods. In Miami's case, unemployment has gone up steadily since 2007.
"These price decreases tend to add up in metro areas that have had continuous increases in the unemployment rate over the past two to three years," says Andres Carbacho-Burgos, an economist at Economy.com.
And unemployment has a nasty way of compounding with other factors.
"Rising unemployment is accompanied by a whole host of other occurrences--rising defaults and foreclosures, reduced mortgage originations, falling incomes, reduced industry investment and construction, increasing outmigration, and lower long-term income prospects," says Carbacho-Burgos.
In other words, as jobless rates go up a little, home prices sink a lot.
All Markets in this Together
It's not just broader metro areas, with their vacant outer suburbs, overbuilt beachfront and overly hopeful new developments that are taking hits. In New York, Manhattan has been showing signs of cracking for months, in the form of rising inventory and slowing sales.
Yet it wasn't until the first quarter of 2009 that it became apparent how much of a hit that market would take.
Manhattan median prices were down 21% in year-over-year terms, from $852,500 to $675,000, according to Miller Samuel, a Manhattan-based appraisal firm. While Moody's expects the broader metro to decline another 23%, and Manhattan will no doubt contribute to that, the price drops have at least piqued interest among those still employed, a lone bright spot.
While a slower housing price decline won't bring jobs back to AIG ( AIG - news - people )--or resurrect Lehman Bros. from the dead--and save housing prices, it at least wards off some fears of a return to the frightening bankrupt New York of the early 1980s.
"By the end of the first quarter there was a noticeable uptick in contract activity and attendance at open houses," says Jonathan Miller, president of Miller Samuel. "While this is partially attributable to seasonality, it is also a sign of first-time qualified buyers seeking to take advantage of improved affordability."
Though, as is the case in Los Angeles and most other parts of the country, that increased interest has yet to result in price reversals to sustainable levels. As long as unemployment continues to rise, don't expect that we've seen the worst of it.
Wednesday, April 8, 2009
Bailout Cash For Energy Efficiency
Story from the Wall Street Journal
Story from the Wall Street Journal
I'm not among the one-in-nine homeowners who currently qualify for aid under the new federal housing-rescue plan. But Uncle Sam may still foot the bill for nearly $19,000 worth of upgrades at my house. And he could for you, too.
Potentially lucrative new and expanded tax incentives for energy-efficient and renewable-energy home improvements may offer some consolation to homeowners who feel they are falling between the cracks with the government's various economic stimulus efforts.
They include up to $1,500 in tax credits for adding qualifying windows, doors, insulation, roofs, heating and cooling equipment, water heaters and even wood and pellet stoves to your your Raleigh real estate in 2009 and 2010. Perks for installing pricier solar technology, small wind-energy systems or a geothermal-well system include a tax credit of 30% of qualifying expenditures with no upper limit through 2016.
The credits helped spur Joe Lombardi of Pleasant Valley, N.Y., to recently sign a contract for a solar-electric system with Hudson Valley Clean Energy in Rhinebeck, N.Y. He expects to get about $10,500 back via the renewable-energy credit on a system costing him roughly $35,000 after a state rebate. He also plans to invest in a heat pump to work in conjunction with the new solar system, which could net him another $1,500 via the energy-efficiency credit. "That's significant," says Mr. Lombardi, who has been considering investing in a solar system since the late 1970s. "I'm an environmentalist. ... It also adds value to the house."
Notably, these incentives are tax credits, which lower your tax bill dollar-for-dollar, versus a tax deduction, which trims money off taxable income. The Internal Revenue Service is expected to issue firm guidelines on details of the credits soon, and consumers should consult tax professionals for clarity on filing.
To be sure, consumers still have to put out cash to get the incentives, and the products that qualify are those generally deemed to be at the highest efficiency levels, which can cost more. Plus, the $1,500 energy efficiency credit currently lasts only last two years, which means consumers must find the fortitude to spend at a time when their instinct may be to save. "This is a pretty lucrative deal, and I don't think the government can continue to do it going forward because it's expensive," says Steven Nadel, executive director of the American Council for an Energy-Efficient Economy, a not-for-profit based in Washington, D.C.
The credits fall into two primary camps. One is energy efficiency, which covers certain improvements to an existing home's structural elements, such as windows and insulation, as well as for the purchase of qualifying high-efficiency heating, cooling and water-heating equipment. The second is for renewable energy, which includes solar, wind, geothermal (heat generated from the earth) and fuel-cell technologies (which convert the chemical energy of a fuel, such as hydrogen, into electricity).
In a nutshell, the energy-efficiency tax credit increases to 30% of qualifying costs from 10%, and the cap also rises to $1,500 from $500. (That's a $1,500 total credit for all applicable improvements combined in 2009 and 2010.) It also extends the credit to include stoves that use renewable biomass fuel -- wood, pellets, plants -- as well as to certain roofing materials; in certain cases, installation costs can be included. Appliances such as refrigerators, dishwashers and clothes washers aren't eligible. For new construction, consumers won't qualify for the $1,500 efficiency credit but are eligible to receive the renewable-energy credit and a separate energy-savings incentive.
With the 30% renewable-energy credit, the richest change is that for systems placed into service after 2008, there is no longer a cap on claims (except for fuel cells). Previously, it was $2,000 for solar systems. "It's a big deal -- it's a really big deal," says Jeff Irish, owner of Hudson Valley Clean Energy, which sells solar and geothermal systems. He says he doesn't expect to raise his prices because of the credit, particularly given the current state of the economy. "We just want to sell more systems."
Manufacturers are hurrying to figure out which products will earn credits under the government's rules, which means testing them for various standards of energy efficiency. The shakeout could have significant impact on future product lineups. "We have one wood stove that apparently doesn't qualify, and it's our third best-selling stove," says Dave Kuhfahl, president of HearthStone Quality Home Heating Products Inc. "We're wondering if it will ever sell again."
Still, manufacturers aren't waiting to educate dealers and consumers about this potential sales chit. Hearth & Home Technologies, a division of HNI Corp., mailed a letter late last month to dealers of its Harman-brand stoves with a list of models they could start promoting in conjunction with the credit. "We are trying to be proactive, so when the dead-on rule comes, they are up to speed," says Dane Harman, Harman's founder. One of his dealers, John Enea of Home & Hearth in Cortlandt Manor, N.Y., echoes the sentiment: "The government is helping us sell stoves."
Others are ramping up advertising campaigns that, in essence, will compete for consumers' tax-credit business. Insulation makers such as Icynene Inc. and BioBased Insulation have prominent Web pages outlining details of the federal tax breaks. Same with makers of several brands of high-efficiency tankless water heaters, including Bosch Group, Takagi USA and Rinnai Corp. For its part, Andersen Corp. and has been playing up the $1,500 perk online and is preparing an ad campaign to explain the tax credits.
"We are hoping [the credit] really does inspire people," says Maureen McDonough, Andersen's director of corporate communications. While windows are always a significant investment, she says, "it seems like something people might be more interested in now."
Of course, tax credits can only do so much to stanch the spending slowdown amid rising unemployment, which last month surged to the highest rate since 1983.
And in the case of solar electric and geothermal systems, costs can still be in the tens of thousands of dollars even after the tax credit. For instance, an estimate I received this year for a solar system to power my electricity clocked in at $49,003 after a state rebate. The new 30% federal tax credit would knock an additional $14,701 off the bill, while a $5,000 state tax credit would help some more.
But that would still leave me with some hefty out-of-pocket expenses. A less-expensive solar system to heat water would cost about $4,111, down from $9,135 after a 30% federal credit and 25% state credit. If I invested in both solar technologies, and tossed in, say, new qualifying insulation, I'd be looking at nearly $19,000 back from the federal government in tax credits over the next few years.
However, consumers who spent on some energy-efficient and renewable-energy improvements in 2008 may be out of luck. For instance, the $3,600 I forked over for a wood stove in July apparently won't earn me a dime under the new plans. "The little bit of backlash we are seeing is from people who bought in '08," says Mr. Enea of Home & Hearth.
Friday, December 5, 2008
Lower Rates Help Sell Houses, but Market Faces Broader Ills
A possible move by the Treasury Department to push down mortgage rates has raised the hopes of home buyers, real-estate agents and economists -- and the share prices of residential builders and related businesses.But the proposal, if implemented as reported, won't be a cure-all for the myriad problems that have curtailed buying.
The Treasury is considering a plan that could enable banks to lend at rates as low as 4.5%, which is more than a full point lower than the prevailing rates on standard 30-year mortgages.
"People are going to see what this does to their mortgage payment, and they will be kicking themselves if they don't jump in and buy," said David Romero, chief operating officer of Century 21 Award in San Diego.
Lower rates alone, however, can't overcome the job losses, lack of down payments and poor credit that have all but frozen the market. And then there are the big-picture factors keeping some would-be buyers on the fence, including worries about the economy and a rocky stock market that is eroding retirement savings.
Some economists also argue that the plan wouldn't help borrowers most in need, including those who owe more than their homes are worth, and therefore might not reduce foreclosures.
"Nine of the top 10 issues hurting sales have to do with poor consumer confidence," said Larry Sorsby, chief financial officer of builder Hovnanian Enterprises Inc in Red Bank, N.J. "You are being bombarded by bad economic news, and people are in fear of keeping their jobs."
Rates on 30-year mortgages plunged this week to the lowest level since January, after the government launched a sweeping effort to aid the housing market. Mortgage-finance giant Freddie Mac reported Thursday that average rates on 30-year fixed mortgages dropped to 5.53% from 5.97% last week -- the largest one-week drop in 27 years.
Home builders, which saw the Dow Jones Wilshire Home Construction Index jump 5.94% Thursday on news that the Treasury was considering the mortgage plan, are still hoping the government does more to spur demand. Their wish list includes a $22,000 tax credit for home buyers and a mortgage-rate buydown that would trim rates to as low as 2.99%.
"A 4.5% rate is a positive step, but it's not enough to do the job," Mr. Sorsby said.
Reducing rates by about one percentage point would effectively lower home prices for buyers by roughly 10%, said Lawrence Yun, chief economist for the National Association of Realtors, which has championed the proposal being considered by the Treasury. The group says each percentage-point reduction in interest could sell between 500,000 and 800,000 homes.
According to investment bank Credit Suisse, 16% of all mortgages, or 8.1 million in all, will be in foreclosure over the next four years. In April, the firm forecast there would be 6.5 million.
The proposed initiative might allow someone considering a $200,000 mortgage to take out a $225,000 loan without paying more interest.
Besides lowering monthly payments, a 4.5% rate would allow buyers to qualify for larger mortgages with less income. With rates around 5.5%, a buyer typically needs income of $92,000, assuming a 10% down payment, to qualify for a $400,000 30-year fixed-rate mortgage. When rates drop to 4.5%, income of $84,000 is needed to qualify, said David Stevens, president of real-estate firm Long & Foster Cos. in Chantilly, Va.
Lower rates would be especially beneficial for buyers of higher-priced homes. In recent months, first-time buyers and bargain-hunting investors have been snapping up lower-priced homes, but pricier ones in the Raleigh Real Estate, Wilson Real Estate, High Point Real Estate, Gated Community Hillsborough NC and Estate Homes Raleigh markets have had great sales.
The lower rates "could free up the move-up and middle-priced markets," Mr. Stevens said. "And that could raise the average sales prices in many markets."
Word that the government may try to push down mortgage rates comes as house prices have fallen 22% nationally since their peak, and likely dropped further as the financial crisis intensified the past two months. Lowering rates could help establish a floor under home values.
In parts of California's Inland Empire, a hard-hit housing market east of Los Angeles, falling rates have been enticing buyers in recent days, said local real-estate agent Graham Holmes. Since the Federal Reserve announced plans on Nov. 25 to buy $600 billion of mortgage debt, Mr. Holmes has had three houses enter into contracts, compared with one the previous week.
"Some buyers were on the borderline in qualifying for the payments, and these lower rates have brought them in line," he said.
But broader forces are countering efforts to expand the buyer pool. Job losses are mounting most among 25-to-34-year-olds, a critical segment of first-time buyers. Foreclosures and credit-card defaults are hurting others' credit scores. Meanwhile, banks have tightened standards, making it tougher for buyers to qualify. Lately there are also lower rates on Cheap Mexico Cruises and Cheap Europe Cruises.
"You need good credit to take advantage of low interest rates," said Craig Beggins, president of Century 21, Beggins Enterprises, in Tampa Bay, Fla. "And there's not enough people with good credit left."
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