heloc shock and stubborn seconds: speedbumps to recovery
TRANSCRIPT
Joe Schwarz is sick and tired of being a landlord
ldquoThe property has pretty much been a nightmare since day onerdquo he said of a home he bought while a student at Arizona State University in 2007 near the height of the housing market in the Phoenix area ldquoIrsquove wanted to be done with it for years but I couldnrsquot because of the second (mortgage) to be honest hellip A lot of people shy away from me because of the secondrdquo
Schwarz said he purchased the property for $165000 thinking he was getting instant equity given that other similar properties nearby were selling for as much as $199000 at the time The plan was to rent the property to cover the
mortgage while watching the equity increase over time
He purchased using some money he inherited along with a stated-income loan and a second mortgage to avoid paying private mortgage insurance (PMI)
ldquoI had to go stated because I couldnrsquot qualify otherwise because I had a part time job working at a bar while I was in collegerdquo said Schwarz who has since married and purchased another property where he and his wife live ldquoI was told if I do a second you donrsquot have to pay PMIrdquo
But about a year after Schwarz purchased the investment property
March 2015 volume 9 issue 3
CONTENTS
7 My Take by Leonard Kiefer Freddie Mac 9 News Briefs
10 Legal Briefs
11 Financial Briefs
12 State Spotlight North Carolina
18 Book Review ldquoThe Liarrsquos Ballrdquo By Vicky Ward
By Daren Blomquist Executive Editor
HELOC Shock and Stubborn Seconds Speedbumps to Recovery
Named the Nationrsquos Best Newsletter by the National Association of Real Estate Editors
Continued Next Page
2
MARCH 2015the housing market tanked and he saw the value of the property drop precipitously falling as low as $65000 Meanwhile the original plan for renting to a friend fell through and although he ended up renting the property eventually the rental income was barely enough to cover his mortgage payments not to mention maintenance vacancies and other costs that come with being a landlord
ldquoIrsquove never really made any money on the property In fact itrsquos been a huge money pit for merdquo he said estimating hersquos invested about $30000 in the property that he never expects to see again
Stymied by the SecondSchwarz wasnrsquot able to refinance because he was underwater on the property which as an investment property also didnrsquot qualify for the government programs he pursued that offered refinancing options to underwater homeowners mdash at least at the time
Schwarz blames the inability to refinance primarily on the second mortgage
ldquoI hate having that secondrdquo he said ldquoThe second has just made it hellip impossible basically refinancing or doing any of that stuffrdquo
Schwarz said he has continued to make mortgage payments because he doesnrsquot want to harm his credit but at $30000 in the hole hersquos close to giving up on the property
ldquoIrsquom never going to see that money hellip so why would I want to be any farther in the holerdquo he asked ldquoI have kind of been under the assumption over the past few years that this property was going to be a foreclosure or short sale
ldquoMy wife and I are just tired of itrdquo he continued ldquoJust tired of dealing with the property hellip Being a landlord is not the right thing for merdquo
Schwarz got some relief last year when his first mortgage a seven-year adjustable rate loan reset at a lower interest rate dropping his payment more than $300 a month But that ARM is scheduled to reset again in 2017 when interest rates could be higher and his second is a fixed 85 percent that he has little hope of refinancing into a lower rate because he estimates the home is still $20000 underwater
Hope Fades as Home Prices PlateauMeanwhile home price appreciation in the Phoenix market has slowed to a crawl after a strong rebound
Continued Next Page
Joe Schwarz purchased this townhouse in Phoenix in 2007 using a second fixed rate mortgage to avoid paying private mortgage insurance but now he says the second is making it difficult for him to refinance or sell the property and he has been asuming it will end up in foreclosure or short sale for the past few years given it is still underwater
3
MARCH 2015between 2011 and the first half of 2014 RealtyTrac data shows median home prices bottomed out in the Phoenix metro area in March 2011 at $110000 and since then have risen 64 percent to $180000 in December 2014 But the pace of appreciation has slowed dramatically in the past few months with the December median price up 2 percent from a year ago compared to a 21 percent year-over-year increase in December 2013 Home price appreciation in Phoenix peaked at 30 percent in April 2013 during this latest rebound
That slowing appreciation is deflating the hopes of underwater homeowners like Schwarz who have held on for years waiting to regain their equity but who are now ready to walk away according to Phoenix full-time real estate investor Maria Giordano
ldquoThe majority are in situations where they have a second that is going to adjustrdquo said Giordano who with her husband owns and manages City Line Properties which specializes in acquiring homes from
distressed homeowners like Schwarz who have few options except for foreclosure She is working with Schwarz on a deal that would allow him to unload his property without having a short sale or foreclosure on his credit history
Giordano said the combination of slowing appreciation and a second mortgage mdash or first mortgage in the case of Schwarz mdash that is going to adjust in the near future is pushing more of the distressed homeowner holdouts over the edge into selling or even foreclosure Many of these
homeowners also have the additional hurdle of deferred maintenance that makes it even tougher to sell or refinance their property
ldquoThe two I looked at this week had green pools just nastyrdquo she said noting that these distressed homeowners have been willing to keep paying a second mortgage at a lower introductory rate but now many are realizing that their payments will soon be going higher ldquoIf yoursquore only paying $200 to $300 on a second hellip why not ride that
Continued Next Page
Irsquom actually one of these people with a house
that has a HELOC which will be maturing in the
spring of 2016
Maria GiordanoPhoenix Investor
City Line PropertiesPhoenix Ariz
4
MARCH 2015out until you decide lsquooh shoot I have to do somethingrsquordquo
HELOC Payment ShockGiordano speaks from personal experience
ldquoIrsquom actually one of these people with a house that has a HELOC which will be maturing in the spring of 2016rdquo she said referring to a home equity line of credit loan ldquoI bought this house just prior to the market going crazy I was able to weather the storm with it when our market collapsed and it went upside downrdquo
But Giordano said when the HELOC adjusts it will add an extra $600 a month to her mortgage payment In her case the property has recently gone above water and now has some equity She plans to list it in April
But not all homeowners with HELOCs are so fortunate
RealtyTrac data shows that 18 million mdash 56 percent mdash of the 33 million still-active HELOCs taken out nationwide during the height of the housing bubble between 2005 and 2008 are still underwater Major markets with the highest percentage of underwater HELOCs are Las Vegas (89 percent) Orlando (79 percent) Riverside-San Bernardino in Southern California (78 percent) Sacramento California (76 percent) and Phoenix (76 percent)
Many of these HELOCs are scheduled to adjust at higher payments in the next five years
ldquoA lot of these seconds that were taken out as a home equity line of credit in 2004 to 2006 these were 30 year loans they were interest only for 10 years with then a 20-year fully amortized repayment period at the end of 10 yearsrdquo said Kathleen Kramer senior loan officer with JMJ Financial in Orange County California ldquoSo theyrsquore going to go from an interest-only payment to a 20 year fully amortized payment and that will be very painful for a lot of these homeownersrdquo
The RealtyTrac analysis of recasting bubble-era HELOCs shows the average payment will increase $146 a month more than double the interest only payment But payments might even quadruple in some cases where the interest loan converts to a 15-year or 10-year fixed instead of a 20-year fixed according to Ted Kohn senior mortgage planner with RPM Mortgage Inc
ldquoThe conversation doesnrsquot become is your rate going up itrsquos how much is it going uprdquo said Kohn who is based in Manhattan Beach California
ldquoWersquore getting calls constantly hellip people were enjoying their loan rates along with not wanting to nudge their equity line especially with prime being at 325 percentrdquo Kohn said noting that now that the HELOCs will soon be
Continued Next Page
5
MARCH 2015
recasting at fully amortizing payments homeowners know they need to act ldquoTheyrsquore at the end of their journey I think yoursquoll see a rush for the doorrdquo
Insult Added to Injury Frozen HELOCsKohn noted that for many HELOC borrowers the higher payments are coming on a credit line they havenrsquot been able to tap for several years because their bank froze the credit line when the financial crisis hit in 2008
ldquoItrsquos almost adding insult to injury because not only are they rolling over but these are people who have had their loans frozen for over five years nowrdquo he said ldquoThese lines are not something that people have been actively using for the last four or five years because they couldnrsquotrdquo
Kramer noted that homeowners in her market are often getting out ahead of the HELOC payment adjustment by more than a year
ldquoMost of them have been underwater for some time and now they have
equity in their homes again and what wersquore finding is that theyrsquore coming to us because they have maybe one year maybe they have 16 months until that loan starts to fully amortizerdquo she said ldquoSo theyrsquore trying to take advantage of the opportunity when they have it with the lower rates and convert these into a new 30-year fixed rate loanrdquo
The Cash-Out ChallengeWhile having equity helps itrsquos not always a panacea for the pain of a resetting
HELOC according to Kramer and Kohn
ldquoOne of the challenges that we see with that in todayrsquos marketplace is that Fannie Mae and Freddie Mac will consider those loans as a cash-out transactionrdquo Kramer said ldquoSo it makes it a little tougher You have to have more equity in the property and you have to have better scores or you get significant hit to the pricing on that new 30-year loanrdquo
ldquoThe pricing is absolutely horrid for a high balance cash-out refinance The premiums you pay are dauntingrdquo Kohn
Kathleen KramerSenior Loan Officer
JMJ FinancialOrange County Calif
So theyrsquore going to go from an interest-only payment to a 20 year fully amortized payment and that will be very painful for a lot of these homeowners
Continued Next Page
6
MARCH 2015said noting one solution hersquos found that works well for some of his clients with high-balance loans is to refinance them into jumbo loans ldquoOftentimes even the jumbo product has a better rate and with the jumbo product it goes by the old Fannie Mae rules (that donrsquot consider the transaction a cash-out refinance)rdquo
Of course the jumbo loan solution comes with its own challenges in the form of tighter debt-to-income limits and more documentation required according to Kohn
The Negative Equity ChallengeThe challenges are exponentially greater for homeowners without equity
ldquoWith equity we are seeing people cash out while they can but without we are seeing folks continue to try loan modifications stripping their seconds in BK (bankruptcy) short selling or unfortunately being foreclosed upon in many instancesrdquo said Brian Alper assistant vice president at Pacific Coast Title Company in Orange California
ldquoAt the 10-year mark yoursquore going to start seeing this become a big problemrdquo said Pam Marron a loan originator in Florida who started the website Housing Crisis Stories to address the continued problems many homeowners are still facing as a result of the housing crisis ldquoIf people are underwater they can do the HARP on the first but there is no relief for the HELOC unless they go delinquentrdquo
Marron was referring to the federal governmentrsquos Home Affordable Refinance Program designed to provide refinancing to underwater homeowners But the program is only applicable for mortgages backed by Fannie Mae and Freddie Mac and most HELOCs are not backed by the two government sponsered enterprises
No Hardship No HelpMarron said the only way many banks will provide relief to underwater homeowners with a recasting HELCO is if the homeowners are delinquent on their monthly payments evidence to the bank that the homeowner is truly experiencing a hardship
ldquoI canrsquot believe the banks are saying we canrsquot help you unless you go delinquentrdquo said Marron ldquoNo wersquore not
having a hardship but when this loan resets we are going to have a hardship Do you want to deal with it now or do you want to deal with it laterrdquo
According to the RealtyTrac analysis Florida mdash where Marron is based mdash has the second highest number of bubble-era HELOCs recasting over the next five years at 365739 and the third highest percentage of those recasting HELOCs that are underwater at 71 percent among all the states
Marron offered up two solutions for underwater homeowners with a recasting HELOC that would work better than the current practice of no hardship no help
First she recommends refinancing the HELOC at a lower interest rate and shorter term and make it fully amortizing right away
ldquo(The) borrower continues to make the same maybe a little bit higher payment and pay it down that much faster hellip Yoursquore definitely going to gain equity back that much quickerrdquo
This benefits the bank too according to Marron
ldquoDo the right thing and yoursquore still going to make moneyrdquo she said ldquoYoursquore not forgiving any part of the loan Yoursquore simply giving the consumer a vehicle to pay back the loan faster and yoursquore getting paid back soonerrdquo
Marronrsquos second solution is simply a short sale although those can be tougher to negotiate when a second mortgage is involved
ldquoIf we are not going to help these people who are staying in their homes and trying to do the right thing If they are getting hit with these resets on the seconds and they are already struggling with the first hellip and finally giving up hellip the best solution is a short salerdquo she said
ldquoIrsquom having a huge number of these folks resetting and not knowing what to dordquo Marron continued ldquoMy fear is that there is a wave of trouble coming if we donrsquot look at it nowrdquo
The conversation doesnrsquot become is your rate going up itrsquos how much is it going up Theyrsquore at the end of their journey I think yoursquoll see a rush for the door
Ted KohnSenior Mortgage Planner
RPM Mortgage IncManhattan Beach Calif
7
MARCH 2015
MY TAKE By Leonard Kiefer Deputy Chief Economist Freddie Mac
The spring home buying season is underway Between now and the end of June wersquoll see about 40 percent of all home sales for the year So these next few months will essentially tell us whether or not 2015 will be a good or bad year for housing markets
Overall wersquore feeling good about housing In fact we expect the best year for home sales and new home construction since 2007
Here are the top three reasons to be optimistic about housing markets in 2015
High AffordabilityAbout 80 percent of metro markets in the US are affordable based on data through the 4th quarter of 2014 on the three primary drivers of affordability house prices interest rates and income
Letrsquos look at the house price part of the equation first House prices continue to rise across the country but are still about 10 percent below their 2006 peak nationally But peak-to-trough comparison can be misleading as many markets experienced unsustainable highs during the last decade Instead when we look at fundamental drivers like payment-to-income and price-to-rent ratios we see that most markets have home values that are sustainable Of the top 50 metros we track in our Multi-Indicator Market Indexreg (MiMi) only Los Angeles has house prices that are elevated given household incomes and mortgage rates Prices remain attractive in most markets
Prices are especially attractive given that mortgage rates remain low the second affordability driver From January 2014 to January of 2015 mortgage rates fell nearly three-fourths of a percentage point Though rates have rebounded from their lows at the end of January rates are significantly below the level from one
year ago Low interest rates do a lot to help support homebuyer affordability But it is the third component mdash household incomendash that will be the key driver of housing markets Incomes have largely stagnated over the past decade barely rising and after adjusting for inflation actually falling for the median household But there have been glimmers of good news in the most recent jobs report which showed income up 22 percent year-over-year With a pickup in economic growth in the second half of 2014 households may be beginning to see a gradual pickup in wages Moreover improved job prospects have started to drive those in prime working ages 24 to 54 back to the labor force But this will require patience Not only were younger cohorts the hardest hit during the downturn there are also the ones struggling the most to get back on their feet Rising wages and salaries will do much to help propel housing markets forward but the full effects will take time
Spring Home Buying Kicks Off Best Year for Homes Sales in Seven Years
Continued Next Page
SOURCE Freddie Mac
8
MARCH 2015Rising RentsNot only is affordability high but rents have been rising rapidly across the country driven by strong demand nationwide Rents increased an average of 36 percent in 2014 and nearly 11 percent over the last three years With demand rising rapidly given the improved job prospects for younger households and vacancy rates at low levels we expect to see rents rise at or above inflation this year as well This may be the tipping point Many current renters may decide to strike while the iron is hot (mortgage rates are low and home prices not too high) and purchase a home this year
In fact study findings support that many feel it could make financial sense to buy today According to an online survey of over 2000 US adult renters commissioned by Freddie Mac and conducted by Harris Poll in November 2014 of those renters who said that they would ever consider buying a home 39 percent already think buying a home is a better financial option than renting
Expanded Credit AvailabilityBut will financing be available for these prospective homebuyers We believe it will be given the wider credit availability in the market today Even for those renter households hit by rising rents who have been unable to save much for a down payment but have good credit and a good-paying job
Broader access to credit will be driven by a confluence of factors including new products First more certainty for lenders through the enhanced representation and warranty framework will help ease credit overlays and facilitate more lending Second reduced premiums by the Federal Housing Administration will help many prospective first-time homebuyers enter the market with a federally insured loan Finally new 3 percent down mortgage products should help those qualified borrowers who have limited down payment savings buy homes with conventional financing These new products will be especially important for prospective first-time homebuyers that have been sitting on the sidelines According to the National Association of Realtors (NAR) Annual Survey of Home Buyers and Sellers the share of first-time buyers in the market fell to its lowest point in nearly three decades in 2014 mainly because rising rents and repaying student loan debt is making it more difficult to save for a down payment especially for younger adults
Unlike Punxsutawany Phil who predicted six more weeks of winter wersquore much more optimistic about the spring home buying season and home sales overall in 2015 We expect that a rapidly improving labor market income growth and only a gradual increase in mortgage rates will support the best year for home sales and new home construction since 2007 with home sales increasing nearly 4 percent from last year and new home construction up nearly 20 percent
Sources Freddie Mac House Price Index Reis Inc Freddie Mac February Outlook
Leonard Kiefer was appointed to the position of Deputy Chief Economist in December 2012 As the Deputy Chief Economist Kiefer is responsible for primary and secondary mortgage market analysis and research macroeconomic analysis and forecasting Kiefer is also involved in the analysis of policy issues affecting the housing industry
Kiefer joined Freddie Mac in 2009 as a Senior Economist He was previously an assistant professor at Texas Tech University in Lubbock Texas where he conducted research on macroeconomics and monetary policy He has also taught economics at The Ohio State University and finance at George Mason University
Kiefer holds a BA in economics from the University of Kentucky and a PhD from The Ohio State University
84
76
58
46 47 45 46
50
55 54 56
58
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Total Home Sales (Millions) Source NAR CensusHUD Freddie Mac
Forecast
SOURCE Freddie Mac
9
MARCH 2015
Realtor Sentenced to 3 Years in PrisonA Seal Beach Calif real estate agent was sentenced to 3 years in federal prison for operating a $14 million fraud scheme in California that bilked investors who paid money in response to false promises of ownership in commercial real estate according to the US Attorney
Karen Hanover 48 was sentenced by United States District Judge Josephine Staton Judge Staton scheduled a May 8 hearing to determine how much restitution should be paid to approximately 45 victims
Hanover pleaded guilty last year to one count of mail fraud related to the scheme she ran out of two Long Beach companies mdash Commercial Investment Education LLC and Kharmic Life Strategies Inc ldquoFast Trackrdquo investment program to investors who attended seminars in Southern California Dallas and Las Vegas
Victims were induced to invest between $19000 and $29000 in the real estate scam In her pitches Hanover ldquofalsely represented to the lsquoFast Trackersrsquo that she would partner with them in real estate deals they would receive 100 percent returns on their investments and she would provide a 100 percent refund if they did not obtain a commercial property within a yearrdquo according to court documents that noted these promises were false
SOURCE US Attorney
Brokerage Realogy Launches Search PortalMove Inc which is owned by News Corp and operates the NRT the nationrsquos largest residential real estate brokerage has launched a new home search portal mdash HomesForSalecom mdash a national property portal to compete with Zillow Trulia and Move
NRT is the subsidiary of Realogy that operates real estate brokerages under Realogyrsquos Coldwell Banker Coldwell Banker Commercial Sothebyrsquos International Realty and Zip Realty brands It also owns regional brands The Corcoran Group and Citi Habitats NRT has over 42000 agents and operates over 700 offices in the US
SOURCE News Corp
Vanilla Ice Arrested for Alleged BurglaryRapper-turned rehabber Vanilla Ice was arrested Feb 18 2015 for an alleged home burglary in Lantana Fla
The former rapper whose real name is Robert Van Winkle was arrested in Lantana Fla accused of stealing furniture from a neighborrsquos home
According to Lantana police furniture a swimming pool heater and bicycles were found at Van Winklersquos property and later returned to the owner He is currently renovating a home adjacent to the property in which the items were stolen police said
Van Winkle has a home renovation show on the DIY Network ldquoThe Vanilla Ice Projectrdquo where he and a crew refurbish foreclosed or distressed homes around Palm Beach County
SOURCE Sun-Sentinel
Realtor Safety Survey The recent death of a South Florida home shopper gunned down while looking at a home in Fort Lauderdale on February 27 has the real estate industry talking about safety
Despite several tragedies in the residential real estate world over the last few years a new survey from the National Association of Realtors found that 96 percent of Realtors have never been a victim of crime But 40 percent of Realtors have found themselves in situations where they fear for their safety the survey found
The survey found that one-third of the 3000 Realtors surveyed said they carry a self-defense weapon Female Realtors are more likely to carry pepper spray while male Realtors more commonly carry a firearm Many agents 38 percent have participated in self-defense classes and 13 percent use a smart phone safety application to track their whereabouts or alert colleagues of an emergency
SOURCES National Association of Realtors Sun-Sentinel
NEWS BRIEFS
10
MARCH 2015
Trulia Will Lose Listing Data in April The online battle between Move Inc and Zillow Group flared up again
Listing syndicator ListHub will stop supplying listings on April 7 giving the nationrsquos second largest real estate listing site less than a month to find an alternative source for more than a quarter of its listings
On Feb 23 a San Francisco judge granted Trulia Inc a temporary restraining order to keep receiving listings data from ListHub
ListHub mdash which is owned by realtorcom and operated by Move Inc a News Corp subsidiary mdash announced Feb 20 that it had terminated its syndication agreement with Trulia in the wake of its acquisition by Zillow and would stop sending listings to Trulia on Feb 26
According to a copy of Truliarsquos complaint obtained by Inman News Trulia which could lose 25 percent of its listings data filed a 52-page complaint against Move Inc in San Francisco Superior Court claiming breach of contract Judge Ernest H Goldsmith scheduled a March 12 court hearing to determine whether or not to compel Move to abide by the original June 19 2016 termination date of its agreement with Trulia
Both Zillow and Trulia will lose listing information from ListHub when the contract between those two entities expires
SOURCES Inman News Courthouse News
W Va Supreme Court Rules in Favor of MERS On February 5 the Supreme Court of Appeals of West Virginia held that the recording of trust deeds do not have to be recorded at the office of the clerk of the county commission
In State of W Va v Waren McGraw the Court disagreed with Wyoming Countyrsquos claims that the recording of trust deed assignments in county record books is required by state law ldquoin order to clear title to properties in the Countiesrdquo While the Counties did not name MERSCORP Holdings Inc or Mortgage Electronic Registrations Systems Inc (MERS) as a defendant in the case the allegations in the complaint were focused on challenging the operations of MERS and the MERSreg System
In his opinion West Virginia Supreme Court of Appeals Justice Menis E Ketchum II said that ldquorecording statutes in West Virginia do not require that the assignment of a trust deed be recorded in the office of the clerk of the county commissionrdquo
SOURCE W Va v Warren McGraw
MetLife Fined $123M for Bad LoansMetLife will cough up $1235 million to settle claims that it knowingly approved federally insured home loans for people who didnrsquot qualify according to the US Justice Department
As part of the settlement MetLife Home Loans admitted that its predecessor mdash MetLife Bank mdash repeatedly certified for Federal Housing Administration insurance on mortgage loans that didnrsquot meet federal underwriting requirements between 2008 and 2012
Furthermore MetLife admitted that the bank knew a large number of the loans were not eligible for FHA mortgage insurance through its own quality control practices Between 2009 and 2010 the bank discovered that anywhere from 25 to 60 percent of these loans were seriously deficient mdash findings that were regularly shared with the bankrsquos CEO and its directors the Justice Department said
Over a two-year period the bank self-identified 1097 mortgages insured by the FHA that were seriously deficient but only reported 321 of them to the Department of Housing and Urban Development As a result FHA insured hundreds of home loans that werenrsquot eligible mdash causing the agency to suffer serious losses when it later paid insurance claims on the loans
ldquoMetLife Bankrsquos improper FHA lending practices not only wasted taxpayer funds but also inflicted harm on homeowners and the housing market that lasts to this dayrdquo said Acting Assistant Attorney General Joyce R Branda of the Justice Departmentrsquos Civil Division ldquoAs this settlement shows we will continue to hold accountable financial institutions that elected to ignore the rules and to pursue their own financial interests at the expense of hardworking Americansrdquo
SOURCE Justice Department
LEGAL BRIEFS
11
MARCH 2015
Housing Rising Student Loan DebtGrowing student loan debt is weighing down on an already tepid housing market according to fresh data from the New York Federal Reserve Rising student loan debt is shutting out potential buyers A new report from the Federal Reserve shows that student loan debt rose in the fourth quarter of 2014 to a record $116 trillion dollars Thatrsquos 7 percent higher than the year before And delinquencies are rising too with current default rates at more than 11 percent Historically first-time home buyers are people in their 20s and 30s but this same age group is carrying a majority of that $116 trillion in loan debt According to the Fed the rising student loan debt is decreasing both household formation and home ownership Labor market growth and higher wages will help shrink student loan debt according to economists
Rents New York Rents Too HighNew Yorkers are now spending approximtely 60 percent of their income to live in Manhattan according to a new study by the website Streeteasy The median monthly New York rent hit $2700 mdash or more than 58 percent of residentsrsquo median income Residents in Brooklyn pay the highest median rent cost mdash 60 percent Surprisingly Manhattanites arenrsquot the worst off Residents in Brooklyn pay the highest median rent cost mdash 60 percent They are followed by those living in the Bronx at 52 percent Manhattan at 49 percent Queens at 41 percent and Staten Island at 30 percent
Trends Millennials Lead All BuyersThe millennial generation represented the largest share of recent home buyers according to a new report from the National Association of Realtors The 2015 National Association of Realtors ldquoHome Buyer and Seller Generational Trends Reportrdquo found that an overwhelming majority of buyers search for homes online and then purchase their home through a real estate agent with millennials also known as Gen Y using agents the most With millennials entering the peak buying period and expected to soon surpass boomers in total population the NAR believes the share of millennial purchases would be higher if not for the numerous obstacles that have slowed their journey to homeownership
Study Consumer Confidence Grows Consumer optimism toward the economy is growing and appears to be contributing to further improvement in overall housing sentiment according to Fannie Maersquos National Housing Survey Most consumers expect home rental prices to continue to rise in the next year but 43 percent still think it is too difficult to get a mortgage the survey found The share of respondents who believe the economy is headed in the right direction increased 3 percentage points in February to an all-time survey high of 47 percent while the those who believe it is headed in the wrong direction decreased to 45 percent a new survey low ldquoWe continue to see strength in attitudes about the current home buying and selling environment and consistently high shares of consumers saying they expect to buy a home on their next moverdquo said Doug Duncan senior vice president and chief economist at Fannie Mae
Tech Smart Homes Sell Faster As smart home technology plays a larger role in real estate Coldwell Banker Real Estate LLC recently released a survey uncovering what smart features home buyers are looking for when purchasing a home and how those features impact a home sale Coldwell Banker also published a list of 25 smart home products and systems in the categories that matter most to buyers A survey of 500 Coldwell sales associates found that 62 percent of buyers want to control their home from their smart phone or tablet One third (33 percent) said that homes with smart home technology sell faster than homes without them Gen X (age 35-49) is the ldquosmartestrdquo generation of home buyers interested in smart home technology today the survey found
Study Remodeling RecoveryThe $300 billion US home improvement industry is faring much better than the broader housing market according to a new report from the Joint Center for Housing Studies of Harvard University ldquoEmerging Trends in the Remodeling Marketrdquo is the latest in the Improving Americarsquos Housing series published by the Joint Center While new home construction is many years away from full recovery the Center reports that Americarsquos home improvement industry could post record-level spending in 2015 with kitchen and bath upgrades leading the way
FINANCIAL BRIEFS
12
MARCH 2015
By Octavio Nuiry Managing Editor
North Carolina Teeing Up Real Estate in the Tar Heel State
In the game of golf an eagle mdash two strokes under par mdash is good news
In the real estate game buying a home located on a golf course is like sinking a housing eagle Not only do you waking up every morning to the possibility of golfing every day but many golf communities are attractive to buyers because of their safety beauty and quality of life
In 2013 Americans bought 717000 vacation homes up 30 percent from a year earlier and proximity to a golf course was a decisive factor for a third of the buyers according to the National Association of Realtorsrsquo 2014 Investment and Vacation Buyers Survey The median price of a vacation home in 2013 was $168700 up 125 percent from 2012
In the Tar Heel State golf and real estate are frequently tied together In North Carolina the vast geographical diversity provides golf home buyers with a wide choice of locations whether coastal inland or mountain From the shores of the Outer Banks to the rolling hills of the Black Mountains golf courses pepper the statersquos landscape Nearly 50 years after Hilton Head Island SC ushered in the first master-planned golf home community North Carolina is slowly recovering from the housing downturn
According to David Lott publisher and founder of Golfcoursehomenet golf communities were hit hard during the recent housing downturn Lott said since the recession the number of courses closing has outnumbered the courses opening He said North Carolina golf communities are slowly rebounding Golf communities in the remote western mountains
Continued Next Page
STATE SPOTLIGHT
Where Most of the Properties Come With a Club Membership AttachedTHREE FOR SALE
Resort community living at its finest in this beautiful all brick three bedroom home on a private wooded lot with wa-ter views and transferable Pinehurst Country Club membership (the buyer pays half initiation fee to join) Agent Sue Boynton Pinehurst Resort Realty (704) 564-8139 wwwpinehurstresort-realtycom
Built in 2006 this brick home on the 18th fairway of the Beacon Ridge golf course has four bedrooms and three baths Club membership attached Agent Dawn Crawley Pinehurst Resort Realty (910) 783-7993 wwwpinehurstresortre-altycom
Located on Pinehurst No 2 golf course this home has four bedrooms and five baths and is walking distance to the His-toric Village of Pinehurst The home is located in Pinehurstrsquos prestigious gated community Fairwoods 7 Agent Marga-ret Chirichingo Pinehurst Resort Realty (704) 564-8139 wwwpinehurstresortre-altycom
WHAT 3-bedroom homeHOW MUCH $225000
WHAT 4-bedroom houseHOW MUCH $399000
WHAT 4-bedroom homeHOW MUCH $1499000
13
MARCH 2015
of North Carolina were hit hardest Lott said
ldquoThe recovery started on the shores of the Atlantic and is slowly working its way inlandrdquo said Lott a former reporter for Golf Digest referring to the westward movement of North Carolinarsquos golf real estate recovery ldquoThe pace of the recovery is going to be different in the various geographical areas The mountain areas are still having the most troublerdquo
During the recent real estate boom developers and home buyers believed residential golf communities were a sure-fire bet Many buyers purchased properties to flip for a quick profit Others were lured for the country club amenities stunning views and security of the gated communities While there are no reliable data on the growth of master-planned golf communities real estate brokers and market analysts say the market is slowly recovering
Clearly the recession of 2008 sliced the growth of golf communities into the rough According to the National Golf Foundation only 14 new courses opened in the United States in 2014 the fewest in 25 years while almost 160 of the countryrsquos 14600 18-hole golf facilities shut down Last year marked the eight straight year that more courses closed than opened
Pinehurst Central North Carolina At Pinehurst (No 2) the luxurious golferrsquos resort in the arid sand hills of south-central North Carolina housing prices remain comparatively reasonable considering that most of the property in Pinehurst comes with a membership to Pinehurst Country Club Pinehurst and its surrounding communities mdash known locally as ldquothe Sandhillsrdquo mdash is located in Moore County Pinehurst is transiting from a playground for retirees into a younger family-friendly resort according to Sue Boynton an associate broker with Pinehurst Resort Realty in Pinehurst NC
ldquoA lot of the buyers here in Pinehurst are from the northeastrdquo said Boynton an avid golfer who lives in the Doral Woods golf community in Pinehurst ldquoBut there are a lot from Charlotte toordquo
As one of the countryrsquos first golf resorts Pinehurst is viewed as the cradle of the sport Pinehurst which ranks 16th on Golf Magazinersquos list of Top 100 Courses in the World is located 60 miles southwest of Raleigh No golf community in America is as rich in golf history as Pinehurst which is home to 42 golf courses many of them world renowned Last year for example the 120-year old Pinehurst resort hosted two of golfrsquos greatest stateside productions mdash the US Menrsquos Open and the Womenrsquos Open Golfers Vickie and David Bowles who purchased a historic home on the tee box of hole 5 on Pinehurst (No 2) in 2013 said they enjoy the layback atmosphere of the Pinehurst Village ldquoOne thing I love about Pinehurst is that I get to spend time with my husbandrdquo said Vickie Bowles referring to time together on the links with her husband David ldquoI had to learn golf and he had to
learn how to snow ski The weather is exceptional and the wersquore close to the mountains and the beaches of North Carolinardquo Built in 1895 on 5500 acres of the Sandhills region of North Carolina the Village of Pinehurst was originally developed as a health resort for patients recovering from tuberculosis As the popularity of North Carolina has surged so have real estate prices Home sites of $600000 are common And homes priced above $5 million donrsquot turn heads Boynton said She said most of the Pinehurst properties come with a membership to the Pinehurst Country Club Property ownership is the only requirement for membership said Bowles
ldquoPinehurst Resort is uniquerdquo said Boynton ldquoIf somebody loves golf Pinehurst is the place to be Itrsquos becoming a neighborhood-friendly community It is
Continued Next Page
David LottFounderPublisher
GolfCourseHomecom Vineyard Haven Mass
The recovery started on the shores of the Atlantic and is slowly
working its way inland The pace of the recovery is going to be different in the various geographical areas The
mountain areas are still having the most
trouble
14
MARCH 2015
increasingly transitioning to younger familiesrdquo
To become a member of the Pinehurst Country Club you have to own property in Pinehurst said Boynton Pinehurst home buyers are required to pay a $12500 transfer fee which is often included in the purchase price and $381 in monthly dues
ldquoPeople are still buyingrdquo said Boynton citing that people from all over the world come to Pinehurst and nearby Southern Pines to play golf and ride horses The area is rural with horse properties and farms Increasingly she said non-golfers are buying in golf communities
According to a survey conducted by Better Homes and Gardens Real Estate 57 percent of baby boomers say they plan to move to a new home in retirement When asked which type of community they were likely to choose 39 percent said a small town like Pinehurst or a rural community The next choice was a 55-and-older community (27 percent) followed by urban living (26 percent) and 25 percent said they would buy a second home such as a vacation beach house or a golf course community
Golf went mainstream in America in the 1890s according to Richard J Moss author of ldquoThe Kingdom of Golf in Americardquo a rich and colorful history of the sport Its popularity and its fortune has waxed and waned in response to larger economic events As America prospered in the 20th century public courses opened alongside private clubs and exposed more people to the sport Between 1992 and 2001
at least 60 percent of new golf courses were tied to property developments writes Moss Golf courses increase the value of surrounding homes and developers built long complicated courses with the hope of attracting tournaments and selling more homes
Moss points out that golf and real estate deals have always been connected Nationwide approximately 60 percent of golf courses are linked to real estate development claims Moss Courses came to be designed with premium-priced houses bordering fairways similar to houses bordering beaches
Moss believes that neither the recession nor the eclipse of its brightest star can stymie professional golf Today according to Moss there are roughly 16000 golf courses in America half or more of the golf courses in the world Average prize money for a PGA Tour event doubled between 2000 and 2010 from $33 million to $6 million reports
Continued Next Page
If somebody loves golf Pinehurst is the place to be Itrsquos becoming a
neighborhood-friendly community It is
increasingly transitioning to younger families
Sue BoyntonAssociate Broker
Pinehurst Resort Realty Pinehurst NC
Pinehurst Resort amp Country Club - No 4 Pinehurst NC
15
MARCH 2015
the Economist In 2014 professional golfers were some of the highest paid athletes in America Phil Mickelson the amiable left-hander ranked 6th nationwide making $37 million according to Fortune Magazine Tiger Woods despite his back problems and not winning a major tournament since 2008 ranked 7th pulling in $35 million
According to the latest list of Golf Digestrsquos top 100 public and private golf courses in the US five North Carolina courses make the cut Leading the list is Tom Fazio-designed Wade Hampton Gold Club in Cashiers NC Pinehurst No 2 was the next highest course ranked on the list coming in at 28 on the list Rounding out the top five are all Fazio designs including Mountain Golf and Lake Club in Cashiers (No 78) Eagle Point Golf Club in Wilmington (No 89) and Diamond Creek Golf Club in Banner Elk (No 94)
Western North Carolina In the mile-high mountains of western North Carolina some of the best golf real estate is found atop the famed Blue Ridge Mountains the tallest peaks of the eastern United States
ldquoOur area is considered the worldrsquos premier mountain golf mecca with two of the top three mountain golf clubs in the world Wade Hampton Golf Club and Mountaintop Golf and Lake Clubrdquo said Bill Kruckenberger brokerowner of Sapphire Valley Real Estate in Sapphire NC ldquoBoth are Fazio courses also considered to be in the top 100 courses worldwide There are a ton of high-end mountain golf courses on our very small mountain plateau (including Bobby Jones summer club Highlands Country Clubrdquo
Kruckenberger knows a thing or two about golf Although hersquos not a golfer he sold the arearsquos public golf course Sapphire National Golf Club not once mdashbut twice
Continued Next Page
Bill KruckenbergerBrokerOwner
Sapphire Valley Real Estate
Sapphire NC
Our area is considered the worldrsquos premier mountain golf mecca with two of the
top three mountain golf clubs in the world
Perched 4400 feet atop the Blue Ridge Mountains buyers can enjoy big moun-tain views from this three bedroom and 3 bath Sapphire Valley Resort home Membership in the Sapphire National Golf Club is included Agent Bill Kruck-enberger Sapphire Valley Real Estate (828) 506-8398 httpwwwsapphirev-alleypropertiescom
WHAT 3-bedroom homeHOW MUCH $585000
This custom golf community home has five bedrooms and three baths Located minutes from Asheville this home is a golfers dream Agent Jeff Stewart Keller Williams Professionals (828) 337-8837 httpwwwbrokerjeffnet
WHAT 5-bedroom houseHOW MUCH $484900
Located on Wade Hamptonrsquos 8 fairway this two-story home has five bedrooms and seven baths and is walking dis-tance to the clubhouse This golf-front mountain home is located in township of Cashiers NC in a prestigious gated community Agent Bill Kruckenberger Sapphire Valley Real Estate (828) 506-8398 httpwwwsapphirevalleyproper-tiescom
WHAT 5-bedroom homeHOW MUCH $2975000
THREE FOR SALE Western North Carolina Golf Homes
16
MARCH 2015Nestled 4000 feet in the Great Smoky Mountains the golfing community of Wade Hampton is a luxury North Carolina mountain real estate golf community 65 miles southwest of Asheville
Kruckenberger has a healthy business selling to second-home buyers and retirees and renting many of those homes out to vacationers He said home prices at Wade Hampton range from $700000 for a cottage to $5 million At Sapphire National Golf Club a two-
bedroom condominium sells for $150000 and homes can sell as high as $5 million
ldquoOur area is 90 percent second-home buyersrdquo he said ldquoA good number are retirees Most buyers are out of state Florida is the number one source of buyers in our area They come to escape the heat in Florida and enjoy the cool mountain air We have a good number of buyers from South Carolina and Georgia And Texans are coming in drovesrdquo
Coastal North Carolina Increasingly golf communities offer a country club experience with swimming tennis spas fine dining and waterfront homes Maritime golf real estate resorts abound along North Carolinarsquos Atlantic coast In southeastern North Carolina along the statersquos 300-mile Atlantic coast some top-notch golf resorts await buyers who like seaside second home properties according Vance Young a broker with Intracoastal Realty in Wrightsville Beach NC
Young said coastal golf home buyers are seeking other amenities beside golf
Continued Next Page Wade Hampton Golf Club Cashiers NC
17
MARCH 2015ldquoAs far as general trends I do see and emphasis on location good shopping access to medical care and transportationrdquo said Young a top producer who sold 125 homes last year for $81 million in sales ldquoBuyers are becoming more demanding and more selective These additional amenities have become critically important the last few yearsrdquo
At Landfall a 2200 acre gated development with 1600 homes nestled along the coast near Wrightsville Beach and Figure Eight Island just nine miles northeast of Wilmington NC buyers can enjoy golf homes at the Country Club of Landfall which offers 45 holes of championship golf 27 designed by Jack Nicklaus and 18 crafted by Peter Dye said Young
Young said buyers are attracted by Wilmington NC the riverfront community along Cape Fear River which features a Riverwalk with over 200
restaurants and shops
In Landfall a golf course townhomes start at $300000 and go up to $700000 he said Single family homes range from $500000 to $5 million The closer you are to the beach the more expensive the homes become
ldquoMost of the residents of Landfall mdash 85 to 90 percent mdash are primary residentsrdquo said Young the No 1 ranked broker in Hanover County who specialize in waterfront and golf resort communities of Wrightsville Beach Figure Eight Island and Landfall ldquoBut we also have a large contingent of second-home owners who come largely from the east coast especially Virginia DC New York and New Jerseyrdquo
As American golf enters the second century of existence it faces a supply-and-demand dilemma too many courses and not enough players But in North Carolina golf real estate is soaring like an eagle
Coastal North Carolina Golf Homes
Vance YoungBroker
Intracoastal RealtyWrightsville Beach NC
As far as general trends I do see an emphasis on location good shopping access to medical care
and transportation
Overlooking the second tee of the Jack Nicklaus golf course at the Country Club of Landfall this beautiful four bedroom five bath Landfall NC French Country inspired design home has a pool and is move-in ready Agent Vance Young In-tracoastal Realty Corp (910) 232-8850 httpVanceYoungcom
This Landfall brick home has four bed-rooms and four baths wit 10 foot ceil-ings and 8 foot doors throughout This Steve Dunn built home is walking dis-tance to the Country Club of Landfall Agent Vance Young Intracoastal Re-alty Corp (910) 232-8850 httpVanc-eYoungcom
WHAT 4-bedroom homeHOW MUCH $769000
Built in 2006 this brick home overlooks the Jack Nicklaus Pines 4 fairway in Landfall NC It has three bedrooms and four baths The home features granite kitchen stainless appliances and a five burner gas range Agent Alison Bern-hart Landfall Realty LLC (800) 227-8208 httpwwwlandfallrealtycom
WHAT 3-bedroom houseHOW MUCH $689000
WHAT 4-bedroom homeHOW MUCH $1199900
THREE FOR SALE
18
MARCH 2015BOOK REVIEWThe GM Building New Yorkrsquos Most Sought After PropertyBy Octavio Nuiry Managing Editor
The General Motors Building isnrsquot the most iconic building in New York City Nor is it the tallest or most elegant But something about the glemming 50-story white marble tower that real estate tycoons canrsquot resist
In ldquoThe Liarrsquos Ball The Extraordinary Saga of How One Building Broke the Worldrsquos Toughest Tycoonsrdquo (Wiley 2014) Vicky Ward lifts the veil on New York Cityrsquos cutthroat world of high-stakes real estate shining the
spotlight on the half-century fight to own one of Americarsquos most desired pieces of real estate the General Motors Building on 5th Avenue in Manhattan
The book largely tells the tragic rise-and-fall of flamboyant New York real estate developer Harry Macklowe who in 2003 engineered the biggest real estate transaction in US history when he bought the GM Building for an unprecedented $14 billion in borrowed funds
Not only does Ward chronicle Macklowersquos recklessness but the book also is an entertaining behind the scenes glimpse at a cast of high-powered New York City real estate tycoons who lie cheat steal mdash and sue each other mdash to acquire NYC trophy properties
The colorful book which spans 150 years of New York real estate history not only documents the history of the GM Building
but some of its flowery suitors including the corrupt politician William ldquoBossrdquo Tweed Cecila Banatter the ldquohousewife tycoonrdquo too busy to name her baby Max Rayne the English property developer who snapped up the iconic Savoy-Plaza Hotel (site of the future GM Building) Disque D Deane the unlovable rogue financier Rita Jenrette Harry Macklowe and Donald Trump She shows how grown men mdash and some powerful women mdash behave like children when their toys are taken away from them
Built by General Motors for corporate offices and a show room on the southeast corner of Central Park in 1968 the GM Building is not New Yorkrsquos tallest skyscraper or most beautiful but it is
desirable in the real estate world for its location across from the Plaza Hotel But itrsquos an iconic trophy tower mdash the most expensive office tower in America mdash that occupys an entire city block and has brought out the worst in a string of landlords from Bill Zeckendorf to Harry Macklowe writes Ward General Motors Co later sold the building but maintained a sizeable presence as a tenant for years
The bookrsquos title comes from the annual black tie gala that the Real Estate Board of New York throws itself every January at the Hilton Grand Ballroom
ldquoEvery year toward the end of January around 2000 members of the New York real estate industry gather at the Hilton to celebrate hellip an event affectionately known by its attendees as lsquothe
Liarrsquos Ballrdquo writes Ward ldquoItrsquos rough itrsquos vulgar and itrsquos a riveting showrdquo
Ward is a New York-based British-born investigative journalist and former contributing editor at Vanity Fair
In 1998 Donald Trump teamed up with financial services company Conseco to buy the building for $878 million from GM which relocated back to Detroit Trump cleaned up the white marble
The Liarrsquos BallBy Vicky Ward
(Wiley 240 pages $2995)
Continued Next Page
Every year toward the end of January around 2000 members of the New York
real estate industry gather at the Hilton to celebrate hellip an event affectionately known
by its attendees as lsquothe Liarrsquos Ball Itrsquos rough itrsquos vulgar and
itrsquos a riveting show
Vicky Ward Author
ldquoThe Liarrsquos Ballrdquo
19
MARCH 2015
walls put in new granite floors emblazed his name on the front of the building and raised rents By 2001 Trump had a chance to buy the entire building for $995 million but he hesitatedTrumprsquos loss was Macklowersquos gain In 2003 Macklowe bought the GM Building from Trump and Conseco for a then-record price of $14 billion Soon Macklowe convinced Steve Jobs then CEO of Apple to open a subterranean flagship store with a glass cube in front of the GM Building It opened in 2006 and was a retail success Now the Apple Store is one of New Yorkrsquos major retail locations
ldquoFor four year Macklowe was riding high after his unexpected success with the GM Building where his visionary ideas mdash including the creation of the iconic Apple flagship store in the basement mdash created $1 billion in valuerdquo writes Ward
Soon however Macklowersquos luck ran out
Convinced he could pull off an even bigger deal Macklowe put
the building up as collateral for a $72 billion loan but the market turned and Macklowe lost the GM Building He sold the building for $28 billion in 2008
The $28 billion price tag remains the highest price ever paid for a single office building in the US
Today the General Motors Building is owned by Boston Properties (which controls 60 percent of the ownership) Chinese developer Zhang Xin and Brazilrsquos Safra Group (each owning a 20 percent stake) The latest deal values the property at $34 billionBut not everyone is a fan of the book
Donald Trump told the New York Post that ldquothe book doesnrsquot capture the essence the glamour or excitement of what happenedrdquo On Twitter Trump wrote ldquoJust finished reading a poorly written and very boring book on the GM Buildingrdquo calling Ward a ldquothird rate writerrdquo
The General Motors Building
DOWNLOAD REALTYTRACrsquoS FREE 2014 GUIDE TO SHORT SALES
State Rank
State Default Auction REO Total 1every X HU (rate)
Δ from Jan 2015
Δ from Feb 2014
US Total 31753 45880 24305 101938 1295 -429 -939
14 Alabama 0 1370 312 1682 1295 6555 2359
30 Alaska 60 59 24 143 2144 1917 2222
24 Arizona 0 1216 395 1611 1775 -2076 -2603
41 Arkansas 0 220 158 378 3494 -979 -503
13 California 5029 4301 2208 11538 1190 -793 -1161
26 Colorado 0 888 267 1155 1924 -2539 -1012
31 Connecticut 234 146 309 689 2158 -5238 -5834
8 Delaware 202 171 53 426 957 -819 1123
District of Columbia 5 37 2 44 6780 23846 52857
3 Florida 3576 7373 4844 15793 570 -1496 -3469
17 Georgia 0 1881 1014 2895 1414 1135 -2834
39 Hawaii 61 47 87 195 2678 598 773
5 Idaho 523 185 56 764 877 2797 11105
7 Illinois 2676 1649 1515 5840 906 -1917 -1051
4 Indiana 1225 1270 721 3216 871 1798 2289
21 Iowa 453 210 138 801 1674 6182 -3223
22 Kansas 231 347 139 717 1723 2535 5689
34 Kentucky 102 534 209 845 2284 4322 1544
27 Louisiana 272 444 297 1013 1949 846 -3494
37 Maine 127 86 62 275 2625 -3514 -5150
1 Maryland 1650 1520 1061 4231 564 1010 -087
32 Massachusetts 746 373 156 1275 2203 897 5269
16 Michigan 746 2178 1030 3208 1412 1154 484
40 Minnesota 0 470 315 785 2999 -2758 -1771
45 Mississippi 0 180 57 237 5390 -1350 33091
35 Missouri 0 706 352 1058 2565 -3424 -1314
49 Montana 0 26 19 45 10740 -1818 -2857
44 Nebraska 71 64 42 177 4521 -2063 11325
2 Nevada 1079 609 381 2069 569 687 1184
43 New Hampshire 0 93 53 146 4214 -4983 -6507
6 New Jersey 2283 1293 406 3982 895 -833 -1721
29 New Mexico 253 80 91 424 2128 -921 -1452
25 New York 3251 702 524 4477 1812 416 1948
10 North Carolina 2234 1107 657 3998 1088 053 10020
50 North Dakota 0 3 2 5 64942 6667 6667
9 Ohio 1480 2138 1505 5123 1000 -739 -590
33 Oklahoma 151 402 201 754 2215 2715 -157
12 Oregon 451 689 326 1466 1144 3512 7663
15 Pennsylvania 1299 1915 853 4067 1368 1118 860
42 Rhode Island 0 77 52 129 3585 -5770 -5257
11 South Carolina 872 734 293 1899 1129 717 -1364
47 South Dakota 0 22 24 46 7950 5862 222
23 Tennessee 0 1246 366 1612 1750 -1801 7315
28 Texas 3 3585 1185 4773 2110 1175 -033
20 Utah 173 366 96 635 1557 -2616 -2275
48 Vermont 0 22 12 34 9498 2143 12667
38 Virginia 0 965 315 1280 2642 -2228 -008
18 Washington 88 1316 637 2041 1421 -078 287
46 West Virginia 0 17 100 117 7529 12075 10526
19 Wisconsin 893 474 357 1724 1523 622 -3205
36 Wyoming 0 74 27 101 2604 5538 1744
February 2015 State-by-State Foreclosure Activity Summary
Rank Metro
Housing Units Per
Foreclosure Filing (Rate)
1 Tampa FL 495
2 Miami FL 539
3 Baltimore MD 547
4 Riverside CA 630
5 Chicago IL 721
6 Philadelphia PA 903
7 Washington DC 1113
8 Seattle WA 1213
9 Atlanta GA 1284
10 Los Angeles CA 1316
11 San Diego CA 1335
12 Detroit MI 1356
13 New York NY 1411
14 St Louis MO 1483
15 Phoenix AZ 1733
16 Dallas TX 1799
17 Minneapolis MN 2000
18 Houston TX 2155
19 San Francisco CA 2182
20 Boston MA 2763
TOP 20 Foreclosure rates in the
Nationrsquos 20 largest metros in February 2015
Housing News Report is a monthly publication dedicated to helping investors succeed by providing them with timely and relevant information about the housing market
EXECUTIVE EDITORDaren Blomquist
MANAGING EDITOROctavio Nuiry
WRITERSDaren Blomquist Octavio Nuiry Peter Miller
ART DIRECTIONEunice Seo
CONTACT USPhone 8003069886
LETTERS TO THE EDITORE-mail editorforeclosurenewsreportcomMail Housing News Report 1 Venture Plaza Suite 300 Irvine CA 92691
2
MARCH 2015the housing market tanked and he saw the value of the property drop precipitously falling as low as $65000 Meanwhile the original plan for renting to a friend fell through and although he ended up renting the property eventually the rental income was barely enough to cover his mortgage payments not to mention maintenance vacancies and other costs that come with being a landlord
ldquoIrsquove never really made any money on the property In fact itrsquos been a huge money pit for merdquo he said estimating hersquos invested about $30000 in the property that he never expects to see again
Stymied by the SecondSchwarz wasnrsquot able to refinance because he was underwater on the property which as an investment property also didnrsquot qualify for the government programs he pursued that offered refinancing options to underwater homeowners mdash at least at the time
Schwarz blames the inability to refinance primarily on the second mortgage
ldquoI hate having that secondrdquo he said ldquoThe second has just made it hellip impossible basically refinancing or doing any of that stuffrdquo
Schwarz said he has continued to make mortgage payments because he doesnrsquot want to harm his credit but at $30000 in the hole hersquos close to giving up on the property
ldquoIrsquom never going to see that money hellip so why would I want to be any farther in the holerdquo he asked ldquoI have kind of been under the assumption over the past few years that this property was going to be a foreclosure or short sale
ldquoMy wife and I are just tired of itrdquo he continued ldquoJust tired of dealing with the property hellip Being a landlord is not the right thing for merdquo
Schwarz got some relief last year when his first mortgage a seven-year adjustable rate loan reset at a lower interest rate dropping his payment more than $300 a month But that ARM is scheduled to reset again in 2017 when interest rates could be higher and his second is a fixed 85 percent that he has little hope of refinancing into a lower rate because he estimates the home is still $20000 underwater
Hope Fades as Home Prices PlateauMeanwhile home price appreciation in the Phoenix market has slowed to a crawl after a strong rebound
Continued Next Page
Joe Schwarz purchased this townhouse in Phoenix in 2007 using a second fixed rate mortgage to avoid paying private mortgage insurance but now he says the second is making it difficult for him to refinance or sell the property and he has been asuming it will end up in foreclosure or short sale for the past few years given it is still underwater
3
MARCH 2015between 2011 and the first half of 2014 RealtyTrac data shows median home prices bottomed out in the Phoenix metro area in March 2011 at $110000 and since then have risen 64 percent to $180000 in December 2014 But the pace of appreciation has slowed dramatically in the past few months with the December median price up 2 percent from a year ago compared to a 21 percent year-over-year increase in December 2013 Home price appreciation in Phoenix peaked at 30 percent in April 2013 during this latest rebound
That slowing appreciation is deflating the hopes of underwater homeowners like Schwarz who have held on for years waiting to regain their equity but who are now ready to walk away according to Phoenix full-time real estate investor Maria Giordano
ldquoThe majority are in situations where they have a second that is going to adjustrdquo said Giordano who with her husband owns and manages City Line Properties which specializes in acquiring homes from
distressed homeowners like Schwarz who have few options except for foreclosure She is working with Schwarz on a deal that would allow him to unload his property without having a short sale or foreclosure on his credit history
Giordano said the combination of slowing appreciation and a second mortgage mdash or first mortgage in the case of Schwarz mdash that is going to adjust in the near future is pushing more of the distressed homeowner holdouts over the edge into selling or even foreclosure Many of these
homeowners also have the additional hurdle of deferred maintenance that makes it even tougher to sell or refinance their property
ldquoThe two I looked at this week had green pools just nastyrdquo she said noting that these distressed homeowners have been willing to keep paying a second mortgage at a lower introductory rate but now many are realizing that their payments will soon be going higher ldquoIf yoursquore only paying $200 to $300 on a second hellip why not ride that
Continued Next Page
Irsquom actually one of these people with a house
that has a HELOC which will be maturing in the
spring of 2016
Maria GiordanoPhoenix Investor
City Line PropertiesPhoenix Ariz
4
MARCH 2015out until you decide lsquooh shoot I have to do somethingrsquordquo
HELOC Payment ShockGiordano speaks from personal experience
ldquoIrsquom actually one of these people with a house that has a HELOC which will be maturing in the spring of 2016rdquo she said referring to a home equity line of credit loan ldquoI bought this house just prior to the market going crazy I was able to weather the storm with it when our market collapsed and it went upside downrdquo
But Giordano said when the HELOC adjusts it will add an extra $600 a month to her mortgage payment In her case the property has recently gone above water and now has some equity She plans to list it in April
But not all homeowners with HELOCs are so fortunate
RealtyTrac data shows that 18 million mdash 56 percent mdash of the 33 million still-active HELOCs taken out nationwide during the height of the housing bubble between 2005 and 2008 are still underwater Major markets with the highest percentage of underwater HELOCs are Las Vegas (89 percent) Orlando (79 percent) Riverside-San Bernardino in Southern California (78 percent) Sacramento California (76 percent) and Phoenix (76 percent)
Many of these HELOCs are scheduled to adjust at higher payments in the next five years
ldquoA lot of these seconds that were taken out as a home equity line of credit in 2004 to 2006 these were 30 year loans they were interest only for 10 years with then a 20-year fully amortized repayment period at the end of 10 yearsrdquo said Kathleen Kramer senior loan officer with JMJ Financial in Orange County California ldquoSo theyrsquore going to go from an interest-only payment to a 20 year fully amortized payment and that will be very painful for a lot of these homeownersrdquo
The RealtyTrac analysis of recasting bubble-era HELOCs shows the average payment will increase $146 a month more than double the interest only payment But payments might even quadruple in some cases where the interest loan converts to a 15-year or 10-year fixed instead of a 20-year fixed according to Ted Kohn senior mortgage planner with RPM Mortgage Inc
ldquoThe conversation doesnrsquot become is your rate going up itrsquos how much is it going uprdquo said Kohn who is based in Manhattan Beach California
ldquoWersquore getting calls constantly hellip people were enjoying their loan rates along with not wanting to nudge their equity line especially with prime being at 325 percentrdquo Kohn said noting that now that the HELOCs will soon be
Continued Next Page
5
MARCH 2015
recasting at fully amortizing payments homeowners know they need to act ldquoTheyrsquore at the end of their journey I think yoursquoll see a rush for the doorrdquo
Insult Added to Injury Frozen HELOCsKohn noted that for many HELOC borrowers the higher payments are coming on a credit line they havenrsquot been able to tap for several years because their bank froze the credit line when the financial crisis hit in 2008
ldquoItrsquos almost adding insult to injury because not only are they rolling over but these are people who have had their loans frozen for over five years nowrdquo he said ldquoThese lines are not something that people have been actively using for the last four or five years because they couldnrsquotrdquo
Kramer noted that homeowners in her market are often getting out ahead of the HELOC payment adjustment by more than a year
ldquoMost of them have been underwater for some time and now they have
equity in their homes again and what wersquore finding is that theyrsquore coming to us because they have maybe one year maybe they have 16 months until that loan starts to fully amortizerdquo she said ldquoSo theyrsquore trying to take advantage of the opportunity when they have it with the lower rates and convert these into a new 30-year fixed rate loanrdquo
The Cash-Out ChallengeWhile having equity helps itrsquos not always a panacea for the pain of a resetting
HELOC according to Kramer and Kohn
ldquoOne of the challenges that we see with that in todayrsquos marketplace is that Fannie Mae and Freddie Mac will consider those loans as a cash-out transactionrdquo Kramer said ldquoSo it makes it a little tougher You have to have more equity in the property and you have to have better scores or you get significant hit to the pricing on that new 30-year loanrdquo
ldquoThe pricing is absolutely horrid for a high balance cash-out refinance The premiums you pay are dauntingrdquo Kohn
Kathleen KramerSenior Loan Officer
JMJ FinancialOrange County Calif
So theyrsquore going to go from an interest-only payment to a 20 year fully amortized payment and that will be very painful for a lot of these homeowners
Continued Next Page
6
MARCH 2015said noting one solution hersquos found that works well for some of his clients with high-balance loans is to refinance them into jumbo loans ldquoOftentimes even the jumbo product has a better rate and with the jumbo product it goes by the old Fannie Mae rules (that donrsquot consider the transaction a cash-out refinance)rdquo
Of course the jumbo loan solution comes with its own challenges in the form of tighter debt-to-income limits and more documentation required according to Kohn
The Negative Equity ChallengeThe challenges are exponentially greater for homeowners without equity
ldquoWith equity we are seeing people cash out while they can but without we are seeing folks continue to try loan modifications stripping their seconds in BK (bankruptcy) short selling or unfortunately being foreclosed upon in many instancesrdquo said Brian Alper assistant vice president at Pacific Coast Title Company in Orange California
ldquoAt the 10-year mark yoursquore going to start seeing this become a big problemrdquo said Pam Marron a loan originator in Florida who started the website Housing Crisis Stories to address the continued problems many homeowners are still facing as a result of the housing crisis ldquoIf people are underwater they can do the HARP on the first but there is no relief for the HELOC unless they go delinquentrdquo
Marron was referring to the federal governmentrsquos Home Affordable Refinance Program designed to provide refinancing to underwater homeowners But the program is only applicable for mortgages backed by Fannie Mae and Freddie Mac and most HELOCs are not backed by the two government sponsered enterprises
No Hardship No HelpMarron said the only way many banks will provide relief to underwater homeowners with a recasting HELCO is if the homeowners are delinquent on their monthly payments evidence to the bank that the homeowner is truly experiencing a hardship
ldquoI canrsquot believe the banks are saying we canrsquot help you unless you go delinquentrdquo said Marron ldquoNo wersquore not
having a hardship but when this loan resets we are going to have a hardship Do you want to deal with it now or do you want to deal with it laterrdquo
According to the RealtyTrac analysis Florida mdash where Marron is based mdash has the second highest number of bubble-era HELOCs recasting over the next five years at 365739 and the third highest percentage of those recasting HELOCs that are underwater at 71 percent among all the states
Marron offered up two solutions for underwater homeowners with a recasting HELOC that would work better than the current practice of no hardship no help
First she recommends refinancing the HELOC at a lower interest rate and shorter term and make it fully amortizing right away
ldquo(The) borrower continues to make the same maybe a little bit higher payment and pay it down that much faster hellip Yoursquore definitely going to gain equity back that much quickerrdquo
This benefits the bank too according to Marron
ldquoDo the right thing and yoursquore still going to make moneyrdquo she said ldquoYoursquore not forgiving any part of the loan Yoursquore simply giving the consumer a vehicle to pay back the loan faster and yoursquore getting paid back soonerrdquo
Marronrsquos second solution is simply a short sale although those can be tougher to negotiate when a second mortgage is involved
ldquoIf we are not going to help these people who are staying in their homes and trying to do the right thing If they are getting hit with these resets on the seconds and they are already struggling with the first hellip and finally giving up hellip the best solution is a short salerdquo she said
ldquoIrsquom having a huge number of these folks resetting and not knowing what to dordquo Marron continued ldquoMy fear is that there is a wave of trouble coming if we donrsquot look at it nowrdquo
The conversation doesnrsquot become is your rate going up itrsquos how much is it going up Theyrsquore at the end of their journey I think yoursquoll see a rush for the door
Ted KohnSenior Mortgage Planner
RPM Mortgage IncManhattan Beach Calif
7
MARCH 2015
MY TAKE By Leonard Kiefer Deputy Chief Economist Freddie Mac
The spring home buying season is underway Between now and the end of June wersquoll see about 40 percent of all home sales for the year So these next few months will essentially tell us whether or not 2015 will be a good or bad year for housing markets
Overall wersquore feeling good about housing In fact we expect the best year for home sales and new home construction since 2007
Here are the top three reasons to be optimistic about housing markets in 2015
High AffordabilityAbout 80 percent of metro markets in the US are affordable based on data through the 4th quarter of 2014 on the three primary drivers of affordability house prices interest rates and income
Letrsquos look at the house price part of the equation first House prices continue to rise across the country but are still about 10 percent below their 2006 peak nationally But peak-to-trough comparison can be misleading as many markets experienced unsustainable highs during the last decade Instead when we look at fundamental drivers like payment-to-income and price-to-rent ratios we see that most markets have home values that are sustainable Of the top 50 metros we track in our Multi-Indicator Market Indexreg (MiMi) only Los Angeles has house prices that are elevated given household incomes and mortgage rates Prices remain attractive in most markets
Prices are especially attractive given that mortgage rates remain low the second affordability driver From January 2014 to January of 2015 mortgage rates fell nearly three-fourths of a percentage point Though rates have rebounded from their lows at the end of January rates are significantly below the level from one
year ago Low interest rates do a lot to help support homebuyer affordability But it is the third component mdash household incomendash that will be the key driver of housing markets Incomes have largely stagnated over the past decade barely rising and after adjusting for inflation actually falling for the median household But there have been glimmers of good news in the most recent jobs report which showed income up 22 percent year-over-year With a pickup in economic growth in the second half of 2014 households may be beginning to see a gradual pickup in wages Moreover improved job prospects have started to drive those in prime working ages 24 to 54 back to the labor force But this will require patience Not only were younger cohorts the hardest hit during the downturn there are also the ones struggling the most to get back on their feet Rising wages and salaries will do much to help propel housing markets forward but the full effects will take time
Spring Home Buying Kicks Off Best Year for Homes Sales in Seven Years
Continued Next Page
SOURCE Freddie Mac
8
MARCH 2015Rising RentsNot only is affordability high but rents have been rising rapidly across the country driven by strong demand nationwide Rents increased an average of 36 percent in 2014 and nearly 11 percent over the last three years With demand rising rapidly given the improved job prospects for younger households and vacancy rates at low levels we expect to see rents rise at or above inflation this year as well This may be the tipping point Many current renters may decide to strike while the iron is hot (mortgage rates are low and home prices not too high) and purchase a home this year
In fact study findings support that many feel it could make financial sense to buy today According to an online survey of over 2000 US adult renters commissioned by Freddie Mac and conducted by Harris Poll in November 2014 of those renters who said that they would ever consider buying a home 39 percent already think buying a home is a better financial option than renting
Expanded Credit AvailabilityBut will financing be available for these prospective homebuyers We believe it will be given the wider credit availability in the market today Even for those renter households hit by rising rents who have been unable to save much for a down payment but have good credit and a good-paying job
Broader access to credit will be driven by a confluence of factors including new products First more certainty for lenders through the enhanced representation and warranty framework will help ease credit overlays and facilitate more lending Second reduced premiums by the Federal Housing Administration will help many prospective first-time homebuyers enter the market with a federally insured loan Finally new 3 percent down mortgage products should help those qualified borrowers who have limited down payment savings buy homes with conventional financing These new products will be especially important for prospective first-time homebuyers that have been sitting on the sidelines According to the National Association of Realtors (NAR) Annual Survey of Home Buyers and Sellers the share of first-time buyers in the market fell to its lowest point in nearly three decades in 2014 mainly because rising rents and repaying student loan debt is making it more difficult to save for a down payment especially for younger adults
Unlike Punxsutawany Phil who predicted six more weeks of winter wersquore much more optimistic about the spring home buying season and home sales overall in 2015 We expect that a rapidly improving labor market income growth and only a gradual increase in mortgage rates will support the best year for home sales and new home construction since 2007 with home sales increasing nearly 4 percent from last year and new home construction up nearly 20 percent
Sources Freddie Mac House Price Index Reis Inc Freddie Mac February Outlook
Leonard Kiefer was appointed to the position of Deputy Chief Economist in December 2012 As the Deputy Chief Economist Kiefer is responsible for primary and secondary mortgage market analysis and research macroeconomic analysis and forecasting Kiefer is also involved in the analysis of policy issues affecting the housing industry
Kiefer joined Freddie Mac in 2009 as a Senior Economist He was previously an assistant professor at Texas Tech University in Lubbock Texas where he conducted research on macroeconomics and monetary policy He has also taught economics at The Ohio State University and finance at George Mason University
Kiefer holds a BA in economics from the University of Kentucky and a PhD from The Ohio State University
84
76
58
46 47 45 46
50
55 54 56
58
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Total Home Sales (Millions) Source NAR CensusHUD Freddie Mac
Forecast
SOURCE Freddie Mac
9
MARCH 2015
Realtor Sentenced to 3 Years in PrisonA Seal Beach Calif real estate agent was sentenced to 3 years in federal prison for operating a $14 million fraud scheme in California that bilked investors who paid money in response to false promises of ownership in commercial real estate according to the US Attorney
Karen Hanover 48 was sentenced by United States District Judge Josephine Staton Judge Staton scheduled a May 8 hearing to determine how much restitution should be paid to approximately 45 victims
Hanover pleaded guilty last year to one count of mail fraud related to the scheme she ran out of two Long Beach companies mdash Commercial Investment Education LLC and Kharmic Life Strategies Inc ldquoFast Trackrdquo investment program to investors who attended seminars in Southern California Dallas and Las Vegas
Victims were induced to invest between $19000 and $29000 in the real estate scam In her pitches Hanover ldquofalsely represented to the lsquoFast Trackersrsquo that she would partner with them in real estate deals they would receive 100 percent returns on their investments and she would provide a 100 percent refund if they did not obtain a commercial property within a yearrdquo according to court documents that noted these promises were false
SOURCE US Attorney
Brokerage Realogy Launches Search PortalMove Inc which is owned by News Corp and operates the NRT the nationrsquos largest residential real estate brokerage has launched a new home search portal mdash HomesForSalecom mdash a national property portal to compete with Zillow Trulia and Move
NRT is the subsidiary of Realogy that operates real estate brokerages under Realogyrsquos Coldwell Banker Coldwell Banker Commercial Sothebyrsquos International Realty and Zip Realty brands It also owns regional brands The Corcoran Group and Citi Habitats NRT has over 42000 agents and operates over 700 offices in the US
SOURCE News Corp
Vanilla Ice Arrested for Alleged BurglaryRapper-turned rehabber Vanilla Ice was arrested Feb 18 2015 for an alleged home burglary in Lantana Fla
The former rapper whose real name is Robert Van Winkle was arrested in Lantana Fla accused of stealing furniture from a neighborrsquos home
According to Lantana police furniture a swimming pool heater and bicycles were found at Van Winklersquos property and later returned to the owner He is currently renovating a home adjacent to the property in which the items were stolen police said
Van Winkle has a home renovation show on the DIY Network ldquoThe Vanilla Ice Projectrdquo where he and a crew refurbish foreclosed or distressed homes around Palm Beach County
SOURCE Sun-Sentinel
Realtor Safety Survey The recent death of a South Florida home shopper gunned down while looking at a home in Fort Lauderdale on February 27 has the real estate industry talking about safety
Despite several tragedies in the residential real estate world over the last few years a new survey from the National Association of Realtors found that 96 percent of Realtors have never been a victim of crime But 40 percent of Realtors have found themselves in situations where they fear for their safety the survey found
The survey found that one-third of the 3000 Realtors surveyed said they carry a self-defense weapon Female Realtors are more likely to carry pepper spray while male Realtors more commonly carry a firearm Many agents 38 percent have participated in self-defense classes and 13 percent use a smart phone safety application to track their whereabouts or alert colleagues of an emergency
SOURCES National Association of Realtors Sun-Sentinel
NEWS BRIEFS
10
MARCH 2015
Trulia Will Lose Listing Data in April The online battle between Move Inc and Zillow Group flared up again
Listing syndicator ListHub will stop supplying listings on April 7 giving the nationrsquos second largest real estate listing site less than a month to find an alternative source for more than a quarter of its listings
On Feb 23 a San Francisco judge granted Trulia Inc a temporary restraining order to keep receiving listings data from ListHub
ListHub mdash which is owned by realtorcom and operated by Move Inc a News Corp subsidiary mdash announced Feb 20 that it had terminated its syndication agreement with Trulia in the wake of its acquisition by Zillow and would stop sending listings to Trulia on Feb 26
According to a copy of Truliarsquos complaint obtained by Inman News Trulia which could lose 25 percent of its listings data filed a 52-page complaint against Move Inc in San Francisco Superior Court claiming breach of contract Judge Ernest H Goldsmith scheduled a March 12 court hearing to determine whether or not to compel Move to abide by the original June 19 2016 termination date of its agreement with Trulia
Both Zillow and Trulia will lose listing information from ListHub when the contract between those two entities expires
SOURCES Inman News Courthouse News
W Va Supreme Court Rules in Favor of MERS On February 5 the Supreme Court of Appeals of West Virginia held that the recording of trust deeds do not have to be recorded at the office of the clerk of the county commission
In State of W Va v Waren McGraw the Court disagreed with Wyoming Countyrsquos claims that the recording of trust deed assignments in county record books is required by state law ldquoin order to clear title to properties in the Countiesrdquo While the Counties did not name MERSCORP Holdings Inc or Mortgage Electronic Registrations Systems Inc (MERS) as a defendant in the case the allegations in the complaint were focused on challenging the operations of MERS and the MERSreg System
In his opinion West Virginia Supreme Court of Appeals Justice Menis E Ketchum II said that ldquorecording statutes in West Virginia do not require that the assignment of a trust deed be recorded in the office of the clerk of the county commissionrdquo
SOURCE W Va v Warren McGraw
MetLife Fined $123M for Bad LoansMetLife will cough up $1235 million to settle claims that it knowingly approved federally insured home loans for people who didnrsquot qualify according to the US Justice Department
As part of the settlement MetLife Home Loans admitted that its predecessor mdash MetLife Bank mdash repeatedly certified for Federal Housing Administration insurance on mortgage loans that didnrsquot meet federal underwriting requirements between 2008 and 2012
Furthermore MetLife admitted that the bank knew a large number of the loans were not eligible for FHA mortgage insurance through its own quality control practices Between 2009 and 2010 the bank discovered that anywhere from 25 to 60 percent of these loans were seriously deficient mdash findings that were regularly shared with the bankrsquos CEO and its directors the Justice Department said
Over a two-year period the bank self-identified 1097 mortgages insured by the FHA that were seriously deficient but only reported 321 of them to the Department of Housing and Urban Development As a result FHA insured hundreds of home loans that werenrsquot eligible mdash causing the agency to suffer serious losses when it later paid insurance claims on the loans
ldquoMetLife Bankrsquos improper FHA lending practices not only wasted taxpayer funds but also inflicted harm on homeowners and the housing market that lasts to this dayrdquo said Acting Assistant Attorney General Joyce R Branda of the Justice Departmentrsquos Civil Division ldquoAs this settlement shows we will continue to hold accountable financial institutions that elected to ignore the rules and to pursue their own financial interests at the expense of hardworking Americansrdquo
SOURCE Justice Department
LEGAL BRIEFS
11
MARCH 2015
Housing Rising Student Loan DebtGrowing student loan debt is weighing down on an already tepid housing market according to fresh data from the New York Federal Reserve Rising student loan debt is shutting out potential buyers A new report from the Federal Reserve shows that student loan debt rose in the fourth quarter of 2014 to a record $116 trillion dollars Thatrsquos 7 percent higher than the year before And delinquencies are rising too with current default rates at more than 11 percent Historically first-time home buyers are people in their 20s and 30s but this same age group is carrying a majority of that $116 trillion in loan debt According to the Fed the rising student loan debt is decreasing both household formation and home ownership Labor market growth and higher wages will help shrink student loan debt according to economists
Rents New York Rents Too HighNew Yorkers are now spending approximtely 60 percent of their income to live in Manhattan according to a new study by the website Streeteasy The median monthly New York rent hit $2700 mdash or more than 58 percent of residentsrsquo median income Residents in Brooklyn pay the highest median rent cost mdash 60 percent Surprisingly Manhattanites arenrsquot the worst off Residents in Brooklyn pay the highest median rent cost mdash 60 percent They are followed by those living in the Bronx at 52 percent Manhattan at 49 percent Queens at 41 percent and Staten Island at 30 percent
Trends Millennials Lead All BuyersThe millennial generation represented the largest share of recent home buyers according to a new report from the National Association of Realtors The 2015 National Association of Realtors ldquoHome Buyer and Seller Generational Trends Reportrdquo found that an overwhelming majority of buyers search for homes online and then purchase their home through a real estate agent with millennials also known as Gen Y using agents the most With millennials entering the peak buying period and expected to soon surpass boomers in total population the NAR believes the share of millennial purchases would be higher if not for the numerous obstacles that have slowed their journey to homeownership
Study Consumer Confidence Grows Consumer optimism toward the economy is growing and appears to be contributing to further improvement in overall housing sentiment according to Fannie Maersquos National Housing Survey Most consumers expect home rental prices to continue to rise in the next year but 43 percent still think it is too difficult to get a mortgage the survey found The share of respondents who believe the economy is headed in the right direction increased 3 percentage points in February to an all-time survey high of 47 percent while the those who believe it is headed in the wrong direction decreased to 45 percent a new survey low ldquoWe continue to see strength in attitudes about the current home buying and selling environment and consistently high shares of consumers saying they expect to buy a home on their next moverdquo said Doug Duncan senior vice president and chief economist at Fannie Mae
Tech Smart Homes Sell Faster As smart home technology plays a larger role in real estate Coldwell Banker Real Estate LLC recently released a survey uncovering what smart features home buyers are looking for when purchasing a home and how those features impact a home sale Coldwell Banker also published a list of 25 smart home products and systems in the categories that matter most to buyers A survey of 500 Coldwell sales associates found that 62 percent of buyers want to control their home from their smart phone or tablet One third (33 percent) said that homes with smart home technology sell faster than homes without them Gen X (age 35-49) is the ldquosmartestrdquo generation of home buyers interested in smart home technology today the survey found
Study Remodeling RecoveryThe $300 billion US home improvement industry is faring much better than the broader housing market according to a new report from the Joint Center for Housing Studies of Harvard University ldquoEmerging Trends in the Remodeling Marketrdquo is the latest in the Improving Americarsquos Housing series published by the Joint Center While new home construction is many years away from full recovery the Center reports that Americarsquos home improvement industry could post record-level spending in 2015 with kitchen and bath upgrades leading the way
FINANCIAL BRIEFS
12
MARCH 2015
By Octavio Nuiry Managing Editor
North Carolina Teeing Up Real Estate in the Tar Heel State
In the game of golf an eagle mdash two strokes under par mdash is good news
In the real estate game buying a home located on a golf course is like sinking a housing eagle Not only do you waking up every morning to the possibility of golfing every day but many golf communities are attractive to buyers because of their safety beauty and quality of life
In 2013 Americans bought 717000 vacation homes up 30 percent from a year earlier and proximity to a golf course was a decisive factor for a third of the buyers according to the National Association of Realtorsrsquo 2014 Investment and Vacation Buyers Survey The median price of a vacation home in 2013 was $168700 up 125 percent from 2012
In the Tar Heel State golf and real estate are frequently tied together In North Carolina the vast geographical diversity provides golf home buyers with a wide choice of locations whether coastal inland or mountain From the shores of the Outer Banks to the rolling hills of the Black Mountains golf courses pepper the statersquos landscape Nearly 50 years after Hilton Head Island SC ushered in the first master-planned golf home community North Carolina is slowly recovering from the housing downturn
According to David Lott publisher and founder of Golfcoursehomenet golf communities were hit hard during the recent housing downturn Lott said since the recession the number of courses closing has outnumbered the courses opening He said North Carolina golf communities are slowly rebounding Golf communities in the remote western mountains
Continued Next Page
STATE SPOTLIGHT
Where Most of the Properties Come With a Club Membership AttachedTHREE FOR SALE
Resort community living at its finest in this beautiful all brick three bedroom home on a private wooded lot with wa-ter views and transferable Pinehurst Country Club membership (the buyer pays half initiation fee to join) Agent Sue Boynton Pinehurst Resort Realty (704) 564-8139 wwwpinehurstresort-realtycom
Built in 2006 this brick home on the 18th fairway of the Beacon Ridge golf course has four bedrooms and three baths Club membership attached Agent Dawn Crawley Pinehurst Resort Realty (910) 783-7993 wwwpinehurstresortre-altycom
Located on Pinehurst No 2 golf course this home has four bedrooms and five baths and is walking distance to the His-toric Village of Pinehurst The home is located in Pinehurstrsquos prestigious gated community Fairwoods 7 Agent Marga-ret Chirichingo Pinehurst Resort Realty (704) 564-8139 wwwpinehurstresortre-altycom
WHAT 3-bedroom homeHOW MUCH $225000
WHAT 4-bedroom houseHOW MUCH $399000
WHAT 4-bedroom homeHOW MUCH $1499000
13
MARCH 2015
of North Carolina were hit hardest Lott said
ldquoThe recovery started on the shores of the Atlantic and is slowly working its way inlandrdquo said Lott a former reporter for Golf Digest referring to the westward movement of North Carolinarsquos golf real estate recovery ldquoThe pace of the recovery is going to be different in the various geographical areas The mountain areas are still having the most troublerdquo
During the recent real estate boom developers and home buyers believed residential golf communities were a sure-fire bet Many buyers purchased properties to flip for a quick profit Others were lured for the country club amenities stunning views and security of the gated communities While there are no reliable data on the growth of master-planned golf communities real estate brokers and market analysts say the market is slowly recovering
Clearly the recession of 2008 sliced the growth of golf communities into the rough According to the National Golf Foundation only 14 new courses opened in the United States in 2014 the fewest in 25 years while almost 160 of the countryrsquos 14600 18-hole golf facilities shut down Last year marked the eight straight year that more courses closed than opened
Pinehurst Central North Carolina At Pinehurst (No 2) the luxurious golferrsquos resort in the arid sand hills of south-central North Carolina housing prices remain comparatively reasonable considering that most of the property in Pinehurst comes with a membership to Pinehurst Country Club Pinehurst and its surrounding communities mdash known locally as ldquothe Sandhillsrdquo mdash is located in Moore County Pinehurst is transiting from a playground for retirees into a younger family-friendly resort according to Sue Boynton an associate broker with Pinehurst Resort Realty in Pinehurst NC
ldquoA lot of the buyers here in Pinehurst are from the northeastrdquo said Boynton an avid golfer who lives in the Doral Woods golf community in Pinehurst ldquoBut there are a lot from Charlotte toordquo
As one of the countryrsquos first golf resorts Pinehurst is viewed as the cradle of the sport Pinehurst which ranks 16th on Golf Magazinersquos list of Top 100 Courses in the World is located 60 miles southwest of Raleigh No golf community in America is as rich in golf history as Pinehurst which is home to 42 golf courses many of them world renowned Last year for example the 120-year old Pinehurst resort hosted two of golfrsquos greatest stateside productions mdash the US Menrsquos Open and the Womenrsquos Open Golfers Vickie and David Bowles who purchased a historic home on the tee box of hole 5 on Pinehurst (No 2) in 2013 said they enjoy the layback atmosphere of the Pinehurst Village ldquoOne thing I love about Pinehurst is that I get to spend time with my husbandrdquo said Vickie Bowles referring to time together on the links with her husband David ldquoI had to learn golf and he had to
learn how to snow ski The weather is exceptional and the wersquore close to the mountains and the beaches of North Carolinardquo Built in 1895 on 5500 acres of the Sandhills region of North Carolina the Village of Pinehurst was originally developed as a health resort for patients recovering from tuberculosis As the popularity of North Carolina has surged so have real estate prices Home sites of $600000 are common And homes priced above $5 million donrsquot turn heads Boynton said She said most of the Pinehurst properties come with a membership to the Pinehurst Country Club Property ownership is the only requirement for membership said Bowles
ldquoPinehurst Resort is uniquerdquo said Boynton ldquoIf somebody loves golf Pinehurst is the place to be Itrsquos becoming a neighborhood-friendly community It is
Continued Next Page
David LottFounderPublisher
GolfCourseHomecom Vineyard Haven Mass
The recovery started on the shores of the Atlantic and is slowly
working its way inland The pace of the recovery is going to be different in the various geographical areas The
mountain areas are still having the most
trouble
14
MARCH 2015
increasingly transitioning to younger familiesrdquo
To become a member of the Pinehurst Country Club you have to own property in Pinehurst said Boynton Pinehurst home buyers are required to pay a $12500 transfer fee which is often included in the purchase price and $381 in monthly dues
ldquoPeople are still buyingrdquo said Boynton citing that people from all over the world come to Pinehurst and nearby Southern Pines to play golf and ride horses The area is rural with horse properties and farms Increasingly she said non-golfers are buying in golf communities
According to a survey conducted by Better Homes and Gardens Real Estate 57 percent of baby boomers say they plan to move to a new home in retirement When asked which type of community they were likely to choose 39 percent said a small town like Pinehurst or a rural community The next choice was a 55-and-older community (27 percent) followed by urban living (26 percent) and 25 percent said they would buy a second home such as a vacation beach house or a golf course community
Golf went mainstream in America in the 1890s according to Richard J Moss author of ldquoThe Kingdom of Golf in Americardquo a rich and colorful history of the sport Its popularity and its fortune has waxed and waned in response to larger economic events As America prospered in the 20th century public courses opened alongside private clubs and exposed more people to the sport Between 1992 and 2001
at least 60 percent of new golf courses were tied to property developments writes Moss Golf courses increase the value of surrounding homes and developers built long complicated courses with the hope of attracting tournaments and selling more homes
Moss points out that golf and real estate deals have always been connected Nationwide approximately 60 percent of golf courses are linked to real estate development claims Moss Courses came to be designed with premium-priced houses bordering fairways similar to houses bordering beaches
Moss believes that neither the recession nor the eclipse of its brightest star can stymie professional golf Today according to Moss there are roughly 16000 golf courses in America half or more of the golf courses in the world Average prize money for a PGA Tour event doubled between 2000 and 2010 from $33 million to $6 million reports
Continued Next Page
If somebody loves golf Pinehurst is the place to be Itrsquos becoming a
neighborhood-friendly community It is
increasingly transitioning to younger families
Sue BoyntonAssociate Broker
Pinehurst Resort Realty Pinehurst NC
Pinehurst Resort amp Country Club - No 4 Pinehurst NC
15
MARCH 2015
the Economist In 2014 professional golfers were some of the highest paid athletes in America Phil Mickelson the amiable left-hander ranked 6th nationwide making $37 million according to Fortune Magazine Tiger Woods despite his back problems and not winning a major tournament since 2008 ranked 7th pulling in $35 million
According to the latest list of Golf Digestrsquos top 100 public and private golf courses in the US five North Carolina courses make the cut Leading the list is Tom Fazio-designed Wade Hampton Gold Club in Cashiers NC Pinehurst No 2 was the next highest course ranked on the list coming in at 28 on the list Rounding out the top five are all Fazio designs including Mountain Golf and Lake Club in Cashiers (No 78) Eagle Point Golf Club in Wilmington (No 89) and Diamond Creek Golf Club in Banner Elk (No 94)
Western North Carolina In the mile-high mountains of western North Carolina some of the best golf real estate is found atop the famed Blue Ridge Mountains the tallest peaks of the eastern United States
ldquoOur area is considered the worldrsquos premier mountain golf mecca with two of the top three mountain golf clubs in the world Wade Hampton Golf Club and Mountaintop Golf and Lake Clubrdquo said Bill Kruckenberger brokerowner of Sapphire Valley Real Estate in Sapphire NC ldquoBoth are Fazio courses also considered to be in the top 100 courses worldwide There are a ton of high-end mountain golf courses on our very small mountain plateau (including Bobby Jones summer club Highlands Country Clubrdquo
Kruckenberger knows a thing or two about golf Although hersquos not a golfer he sold the arearsquos public golf course Sapphire National Golf Club not once mdashbut twice
Continued Next Page
Bill KruckenbergerBrokerOwner
Sapphire Valley Real Estate
Sapphire NC
Our area is considered the worldrsquos premier mountain golf mecca with two of the
top three mountain golf clubs in the world
Perched 4400 feet atop the Blue Ridge Mountains buyers can enjoy big moun-tain views from this three bedroom and 3 bath Sapphire Valley Resort home Membership in the Sapphire National Golf Club is included Agent Bill Kruck-enberger Sapphire Valley Real Estate (828) 506-8398 httpwwwsapphirev-alleypropertiescom
WHAT 3-bedroom homeHOW MUCH $585000
This custom golf community home has five bedrooms and three baths Located minutes from Asheville this home is a golfers dream Agent Jeff Stewart Keller Williams Professionals (828) 337-8837 httpwwwbrokerjeffnet
WHAT 5-bedroom houseHOW MUCH $484900
Located on Wade Hamptonrsquos 8 fairway this two-story home has five bedrooms and seven baths and is walking dis-tance to the clubhouse This golf-front mountain home is located in township of Cashiers NC in a prestigious gated community Agent Bill Kruckenberger Sapphire Valley Real Estate (828) 506-8398 httpwwwsapphirevalleyproper-tiescom
WHAT 5-bedroom homeHOW MUCH $2975000
THREE FOR SALE Western North Carolina Golf Homes
16
MARCH 2015Nestled 4000 feet in the Great Smoky Mountains the golfing community of Wade Hampton is a luxury North Carolina mountain real estate golf community 65 miles southwest of Asheville
Kruckenberger has a healthy business selling to second-home buyers and retirees and renting many of those homes out to vacationers He said home prices at Wade Hampton range from $700000 for a cottage to $5 million At Sapphire National Golf Club a two-
bedroom condominium sells for $150000 and homes can sell as high as $5 million
ldquoOur area is 90 percent second-home buyersrdquo he said ldquoA good number are retirees Most buyers are out of state Florida is the number one source of buyers in our area They come to escape the heat in Florida and enjoy the cool mountain air We have a good number of buyers from South Carolina and Georgia And Texans are coming in drovesrdquo
Coastal North Carolina Increasingly golf communities offer a country club experience with swimming tennis spas fine dining and waterfront homes Maritime golf real estate resorts abound along North Carolinarsquos Atlantic coast In southeastern North Carolina along the statersquos 300-mile Atlantic coast some top-notch golf resorts await buyers who like seaside second home properties according Vance Young a broker with Intracoastal Realty in Wrightsville Beach NC
Young said coastal golf home buyers are seeking other amenities beside golf
Continued Next Page Wade Hampton Golf Club Cashiers NC
17
MARCH 2015ldquoAs far as general trends I do see and emphasis on location good shopping access to medical care and transportationrdquo said Young a top producer who sold 125 homes last year for $81 million in sales ldquoBuyers are becoming more demanding and more selective These additional amenities have become critically important the last few yearsrdquo
At Landfall a 2200 acre gated development with 1600 homes nestled along the coast near Wrightsville Beach and Figure Eight Island just nine miles northeast of Wilmington NC buyers can enjoy golf homes at the Country Club of Landfall which offers 45 holes of championship golf 27 designed by Jack Nicklaus and 18 crafted by Peter Dye said Young
Young said buyers are attracted by Wilmington NC the riverfront community along Cape Fear River which features a Riverwalk with over 200
restaurants and shops
In Landfall a golf course townhomes start at $300000 and go up to $700000 he said Single family homes range from $500000 to $5 million The closer you are to the beach the more expensive the homes become
ldquoMost of the residents of Landfall mdash 85 to 90 percent mdash are primary residentsrdquo said Young the No 1 ranked broker in Hanover County who specialize in waterfront and golf resort communities of Wrightsville Beach Figure Eight Island and Landfall ldquoBut we also have a large contingent of second-home owners who come largely from the east coast especially Virginia DC New York and New Jerseyrdquo
As American golf enters the second century of existence it faces a supply-and-demand dilemma too many courses and not enough players But in North Carolina golf real estate is soaring like an eagle
Coastal North Carolina Golf Homes
Vance YoungBroker
Intracoastal RealtyWrightsville Beach NC
As far as general trends I do see an emphasis on location good shopping access to medical care
and transportation
Overlooking the second tee of the Jack Nicklaus golf course at the Country Club of Landfall this beautiful four bedroom five bath Landfall NC French Country inspired design home has a pool and is move-in ready Agent Vance Young In-tracoastal Realty Corp (910) 232-8850 httpVanceYoungcom
This Landfall brick home has four bed-rooms and four baths wit 10 foot ceil-ings and 8 foot doors throughout This Steve Dunn built home is walking dis-tance to the Country Club of Landfall Agent Vance Young Intracoastal Re-alty Corp (910) 232-8850 httpVanc-eYoungcom
WHAT 4-bedroom homeHOW MUCH $769000
Built in 2006 this brick home overlooks the Jack Nicklaus Pines 4 fairway in Landfall NC It has three bedrooms and four baths The home features granite kitchen stainless appliances and a five burner gas range Agent Alison Bern-hart Landfall Realty LLC (800) 227-8208 httpwwwlandfallrealtycom
WHAT 3-bedroom houseHOW MUCH $689000
WHAT 4-bedroom homeHOW MUCH $1199900
THREE FOR SALE
18
MARCH 2015BOOK REVIEWThe GM Building New Yorkrsquos Most Sought After PropertyBy Octavio Nuiry Managing Editor
The General Motors Building isnrsquot the most iconic building in New York City Nor is it the tallest or most elegant But something about the glemming 50-story white marble tower that real estate tycoons canrsquot resist
In ldquoThe Liarrsquos Ball The Extraordinary Saga of How One Building Broke the Worldrsquos Toughest Tycoonsrdquo (Wiley 2014) Vicky Ward lifts the veil on New York Cityrsquos cutthroat world of high-stakes real estate shining the
spotlight on the half-century fight to own one of Americarsquos most desired pieces of real estate the General Motors Building on 5th Avenue in Manhattan
The book largely tells the tragic rise-and-fall of flamboyant New York real estate developer Harry Macklowe who in 2003 engineered the biggest real estate transaction in US history when he bought the GM Building for an unprecedented $14 billion in borrowed funds
Not only does Ward chronicle Macklowersquos recklessness but the book also is an entertaining behind the scenes glimpse at a cast of high-powered New York City real estate tycoons who lie cheat steal mdash and sue each other mdash to acquire NYC trophy properties
The colorful book which spans 150 years of New York real estate history not only documents the history of the GM Building
but some of its flowery suitors including the corrupt politician William ldquoBossrdquo Tweed Cecila Banatter the ldquohousewife tycoonrdquo too busy to name her baby Max Rayne the English property developer who snapped up the iconic Savoy-Plaza Hotel (site of the future GM Building) Disque D Deane the unlovable rogue financier Rita Jenrette Harry Macklowe and Donald Trump She shows how grown men mdash and some powerful women mdash behave like children when their toys are taken away from them
Built by General Motors for corporate offices and a show room on the southeast corner of Central Park in 1968 the GM Building is not New Yorkrsquos tallest skyscraper or most beautiful but it is
desirable in the real estate world for its location across from the Plaza Hotel But itrsquos an iconic trophy tower mdash the most expensive office tower in America mdash that occupys an entire city block and has brought out the worst in a string of landlords from Bill Zeckendorf to Harry Macklowe writes Ward General Motors Co later sold the building but maintained a sizeable presence as a tenant for years
The bookrsquos title comes from the annual black tie gala that the Real Estate Board of New York throws itself every January at the Hilton Grand Ballroom
ldquoEvery year toward the end of January around 2000 members of the New York real estate industry gather at the Hilton to celebrate hellip an event affectionately known by its attendees as lsquothe
Liarrsquos Ballrdquo writes Ward ldquoItrsquos rough itrsquos vulgar and itrsquos a riveting showrdquo
Ward is a New York-based British-born investigative journalist and former contributing editor at Vanity Fair
In 1998 Donald Trump teamed up with financial services company Conseco to buy the building for $878 million from GM which relocated back to Detroit Trump cleaned up the white marble
The Liarrsquos BallBy Vicky Ward
(Wiley 240 pages $2995)
Continued Next Page
Every year toward the end of January around 2000 members of the New York
real estate industry gather at the Hilton to celebrate hellip an event affectionately known
by its attendees as lsquothe Liarrsquos Ball Itrsquos rough itrsquos vulgar and
itrsquos a riveting show
Vicky Ward Author
ldquoThe Liarrsquos Ballrdquo
19
MARCH 2015
walls put in new granite floors emblazed his name on the front of the building and raised rents By 2001 Trump had a chance to buy the entire building for $995 million but he hesitatedTrumprsquos loss was Macklowersquos gain In 2003 Macklowe bought the GM Building from Trump and Conseco for a then-record price of $14 billion Soon Macklowe convinced Steve Jobs then CEO of Apple to open a subterranean flagship store with a glass cube in front of the GM Building It opened in 2006 and was a retail success Now the Apple Store is one of New Yorkrsquos major retail locations
ldquoFor four year Macklowe was riding high after his unexpected success with the GM Building where his visionary ideas mdash including the creation of the iconic Apple flagship store in the basement mdash created $1 billion in valuerdquo writes Ward
Soon however Macklowersquos luck ran out
Convinced he could pull off an even bigger deal Macklowe put
the building up as collateral for a $72 billion loan but the market turned and Macklowe lost the GM Building He sold the building for $28 billion in 2008
The $28 billion price tag remains the highest price ever paid for a single office building in the US
Today the General Motors Building is owned by Boston Properties (which controls 60 percent of the ownership) Chinese developer Zhang Xin and Brazilrsquos Safra Group (each owning a 20 percent stake) The latest deal values the property at $34 billionBut not everyone is a fan of the book
Donald Trump told the New York Post that ldquothe book doesnrsquot capture the essence the glamour or excitement of what happenedrdquo On Twitter Trump wrote ldquoJust finished reading a poorly written and very boring book on the GM Buildingrdquo calling Ward a ldquothird rate writerrdquo
The General Motors Building
DOWNLOAD REALTYTRACrsquoS FREE 2014 GUIDE TO SHORT SALES
State Rank
State Default Auction REO Total 1every X HU (rate)
Δ from Jan 2015
Δ from Feb 2014
US Total 31753 45880 24305 101938 1295 -429 -939
14 Alabama 0 1370 312 1682 1295 6555 2359
30 Alaska 60 59 24 143 2144 1917 2222
24 Arizona 0 1216 395 1611 1775 -2076 -2603
41 Arkansas 0 220 158 378 3494 -979 -503
13 California 5029 4301 2208 11538 1190 -793 -1161
26 Colorado 0 888 267 1155 1924 -2539 -1012
31 Connecticut 234 146 309 689 2158 -5238 -5834
8 Delaware 202 171 53 426 957 -819 1123
District of Columbia 5 37 2 44 6780 23846 52857
3 Florida 3576 7373 4844 15793 570 -1496 -3469
17 Georgia 0 1881 1014 2895 1414 1135 -2834
39 Hawaii 61 47 87 195 2678 598 773
5 Idaho 523 185 56 764 877 2797 11105
7 Illinois 2676 1649 1515 5840 906 -1917 -1051
4 Indiana 1225 1270 721 3216 871 1798 2289
21 Iowa 453 210 138 801 1674 6182 -3223
22 Kansas 231 347 139 717 1723 2535 5689
34 Kentucky 102 534 209 845 2284 4322 1544
27 Louisiana 272 444 297 1013 1949 846 -3494
37 Maine 127 86 62 275 2625 -3514 -5150
1 Maryland 1650 1520 1061 4231 564 1010 -087
32 Massachusetts 746 373 156 1275 2203 897 5269
16 Michigan 746 2178 1030 3208 1412 1154 484
40 Minnesota 0 470 315 785 2999 -2758 -1771
45 Mississippi 0 180 57 237 5390 -1350 33091
35 Missouri 0 706 352 1058 2565 -3424 -1314
49 Montana 0 26 19 45 10740 -1818 -2857
44 Nebraska 71 64 42 177 4521 -2063 11325
2 Nevada 1079 609 381 2069 569 687 1184
43 New Hampshire 0 93 53 146 4214 -4983 -6507
6 New Jersey 2283 1293 406 3982 895 -833 -1721
29 New Mexico 253 80 91 424 2128 -921 -1452
25 New York 3251 702 524 4477 1812 416 1948
10 North Carolina 2234 1107 657 3998 1088 053 10020
50 North Dakota 0 3 2 5 64942 6667 6667
9 Ohio 1480 2138 1505 5123 1000 -739 -590
33 Oklahoma 151 402 201 754 2215 2715 -157
12 Oregon 451 689 326 1466 1144 3512 7663
15 Pennsylvania 1299 1915 853 4067 1368 1118 860
42 Rhode Island 0 77 52 129 3585 -5770 -5257
11 South Carolina 872 734 293 1899 1129 717 -1364
47 South Dakota 0 22 24 46 7950 5862 222
23 Tennessee 0 1246 366 1612 1750 -1801 7315
28 Texas 3 3585 1185 4773 2110 1175 -033
20 Utah 173 366 96 635 1557 -2616 -2275
48 Vermont 0 22 12 34 9498 2143 12667
38 Virginia 0 965 315 1280 2642 -2228 -008
18 Washington 88 1316 637 2041 1421 -078 287
46 West Virginia 0 17 100 117 7529 12075 10526
19 Wisconsin 893 474 357 1724 1523 622 -3205
36 Wyoming 0 74 27 101 2604 5538 1744
February 2015 State-by-State Foreclosure Activity Summary
Rank Metro
Housing Units Per
Foreclosure Filing (Rate)
1 Tampa FL 495
2 Miami FL 539
3 Baltimore MD 547
4 Riverside CA 630
5 Chicago IL 721
6 Philadelphia PA 903
7 Washington DC 1113
8 Seattle WA 1213
9 Atlanta GA 1284
10 Los Angeles CA 1316
11 San Diego CA 1335
12 Detroit MI 1356
13 New York NY 1411
14 St Louis MO 1483
15 Phoenix AZ 1733
16 Dallas TX 1799
17 Minneapolis MN 2000
18 Houston TX 2155
19 San Francisco CA 2182
20 Boston MA 2763
TOP 20 Foreclosure rates in the
Nationrsquos 20 largest metros in February 2015
Housing News Report is a monthly publication dedicated to helping investors succeed by providing them with timely and relevant information about the housing market
EXECUTIVE EDITORDaren Blomquist
MANAGING EDITOROctavio Nuiry
WRITERSDaren Blomquist Octavio Nuiry Peter Miller
ART DIRECTIONEunice Seo
CONTACT USPhone 8003069886
LETTERS TO THE EDITORE-mail editorforeclosurenewsreportcomMail Housing News Report 1 Venture Plaza Suite 300 Irvine CA 92691
3
MARCH 2015between 2011 and the first half of 2014 RealtyTrac data shows median home prices bottomed out in the Phoenix metro area in March 2011 at $110000 and since then have risen 64 percent to $180000 in December 2014 But the pace of appreciation has slowed dramatically in the past few months with the December median price up 2 percent from a year ago compared to a 21 percent year-over-year increase in December 2013 Home price appreciation in Phoenix peaked at 30 percent in April 2013 during this latest rebound
That slowing appreciation is deflating the hopes of underwater homeowners like Schwarz who have held on for years waiting to regain their equity but who are now ready to walk away according to Phoenix full-time real estate investor Maria Giordano
ldquoThe majority are in situations where they have a second that is going to adjustrdquo said Giordano who with her husband owns and manages City Line Properties which specializes in acquiring homes from
distressed homeowners like Schwarz who have few options except for foreclosure She is working with Schwarz on a deal that would allow him to unload his property without having a short sale or foreclosure on his credit history
Giordano said the combination of slowing appreciation and a second mortgage mdash or first mortgage in the case of Schwarz mdash that is going to adjust in the near future is pushing more of the distressed homeowner holdouts over the edge into selling or even foreclosure Many of these
homeowners also have the additional hurdle of deferred maintenance that makes it even tougher to sell or refinance their property
ldquoThe two I looked at this week had green pools just nastyrdquo she said noting that these distressed homeowners have been willing to keep paying a second mortgage at a lower introductory rate but now many are realizing that their payments will soon be going higher ldquoIf yoursquore only paying $200 to $300 on a second hellip why not ride that
Continued Next Page
Irsquom actually one of these people with a house
that has a HELOC which will be maturing in the
spring of 2016
Maria GiordanoPhoenix Investor
City Line PropertiesPhoenix Ariz
4
MARCH 2015out until you decide lsquooh shoot I have to do somethingrsquordquo
HELOC Payment ShockGiordano speaks from personal experience
ldquoIrsquom actually one of these people with a house that has a HELOC which will be maturing in the spring of 2016rdquo she said referring to a home equity line of credit loan ldquoI bought this house just prior to the market going crazy I was able to weather the storm with it when our market collapsed and it went upside downrdquo
But Giordano said when the HELOC adjusts it will add an extra $600 a month to her mortgage payment In her case the property has recently gone above water and now has some equity She plans to list it in April
But not all homeowners with HELOCs are so fortunate
RealtyTrac data shows that 18 million mdash 56 percent mdash of the 33 million still-active HELOCs taken out nationwide during the height of the housing bubble between 2005 and 2008 are still underwater Major markets with the highest percentage of underwater HELOCs are Las Vegas (89 percent) Orlando (79 percent) Riverside-San Bernardino in Southern California (78 percent) Sacramento California (76 percent) and Phoenix (76 percent)
Many of these HELOCs are scheduled to adjust at higher payments in the next five years
ldquoA lot of these seconds that were taken out as a home equity line of credit in 2004 to 2006 these were 30 year loans they were interest only for 10 years with then a 20-year fully amortized repayment period at the end of 10 yearsrdquo said Kathleen Kramer senior loan officer with JMJ Financial in Orange County California ldquoSo theyrsquore going to go from an interest-only payment to a 20 year fully amortized payment and that will be very painful for a lot of these homeownersrdquo
The RealtyTrac analysis of recasting bubble-era HELOCs shows the average payment will increase $146 a month more than double the interest only payment But payments might even quadruple in some cases where the interest loan converts to a 15-year or 10-year fixed instead of a 20-year fixed according to Ted Kohn senior mortgage planner with RPM Mortgage Inc
ldquoThe conversation doesnrsquot become is your rate going up itrsquos how much is it going uprdquo said Kohn who is based in Manhattan Beach California
ldquoWersquore getting calls constantly hellip people were enjoying their loan rates along with not wanting to nudge their equity line especially with prime being at 325 percentrdquo Kohn said noting that now that the HELOCs will soon be
Continued Next Page
5
MARCH 2015
recasting at fully amortizing payments homeowners know they need to act ldquoTheyrsquore at the end of their journey I think yoursquoll see a rush for the doorrdquo
Insult Added to Injury Frozen HELOCsKohn noted that for many HELOC borrowers the higher payments are coming on a credit line they havenrsquot been able to tap for several years because their bank froze the credit line when the financial crisis hit in 2008
ldquoItrsquos almost adding insult to injury because not only are they rolling over but these are people who have had their loans frozen for over five years nowrdquo he said ldquoThese lines are not something that people have been actively using for the last four or five years because they couldnrsquotrdquo
Kramer noted that homeowners in her market are often getting out ahead of the HELOC payment adjustment by more than a year
ldquoMost of them have been underwater for some time and now they have
equity in their homes again and what wersquore finding is that theyrsquore coming to us because they have maybe one year maybe they have 16 months until that loan starts to fully amortizerdquo she said ldquoSo theyrsquore trying to take advantage of the opportunity when they have it with the lower rates and convert these into a new 30-year fixed rate loanrdquo
The Cash-Out ChallengeWhile having equity helps itrsquos not always a panacea for the pain of a resetting
HELOC according to Kramer and Kohn
ldquoOne of the challenges that we see with that in todayrsquos marketplace is that Fannie Mae and Freddie Mac will consider those loans as a cash-out transactionrdquo Kramer said ldquoSo it makes it a little tougher You have to have more equity in the property and you have to have better scores or you get significant hit to the pricing on that new 30-year loanrdquo
ldquoThe pricing is absolutely horrid for a high balance cash-out refinance The premiums you pay are dauntingrdquo Kohn
Kathleen KramerSenior Loan Officer
JMJ FinancialOrange County Calif
So theyrsquore going to go from an interest-only payment to a 20 year fully amortized payment and that will be very painful for a lot of these homeowners
Continued Next Page
6
MARCH 2015said noting one solution hersquos found that works well for some of his clients with high-balance loans is to refinance them into jumbo loans ldquoOftentimes even the jumbo product has a better rate and with the jumbo product it goes by the old Fannie Mae rules (that donrsquot consider the transaction a cash-out refinance)rdquo
Of course the jumbo loan solution comes with its own challenges in the form of tighter debt-to-income limits and more documentation required according to Kohn
The Negative Equity ChallengeThe challenges are exponentially greater for homeowners without equity
ldquoWith equity we are seeing people cash out while they can but without we are seeing folks continue to try loan modifications stripping their seconds in BK (bankruptcy) short selling or unfortunately being foreclosed upon in many instancesrdquo said Brian Alper assistant vice president at Pacific Coast Title Company in Orange California
ldquoAt the 10-year mark yoursquore going to start seeing this become a big problemrdquo said Pam Marron a loan originator in Florida who started the website Housing Crisis Stories to address the continued problems many homeowners are still facing as a result of the housing crisis ldquoIf people are underwater they can do the HARP on the first but there is no relief for the HELOC unless they go delinquentrdquo
Marron was referring to the federal governmentrsquos Home Affordable Refinance Program designed to provide refinancing to underwater homeowners But the program is only applicable for mortgages backed by Fannie Mae and Freddie Mac and most HELOCs are not backed by the two government sponsered enterprises
No Hardship No HelpMarron said the only way many banks will provide relief to underwater homeowners with a recasting HELCO is if the homeowners are delinquent on their monthly payments evidence to the bank that the homeowner is truly experiencing a hardship
ldquoI canrsquot believe the banks are saying we canrsquot help you unless you go delinquentrdquo said Marron ldquoNo wersquore not
having a hardship but when this loan resets we are going to have a hardship Do you want to deal with it now or do you want to deal with it laterrdquo
According to the RealtyTrac analysis Florida mdash where Marron is based mdash has the second highest number of bubble-era HELOCs recasting over the next five years at 365739 and the third highest percentage of those recasting HELOCs that are underwater at 71 percent among all the states
Marron offered up two solutions for underwater homeowners with a recasting HELOC that would work better than the current practice of no hardship no help
First she recommends refinancing the HELOC at a lower interest rate and shorter term and make it fully amortizing right away
ldquo(The) borrower continues to make the same maybe a little bit higher payment and pay it down that much faster hellip Yoursquore definitely going to gain equity back that much quickerrdquo
This benefits the bank too according to Marron
ldquoDo the right thing and yoursquore still going to make moneyrdquo she said ldquoYoursquore not forgiving any part of the loan Yoursquore simply giving the consumer a vehicle to pay back the loan faster and yoursquore getting paid back soonerrdquo
Marronrsquos second solution is simply a short sale although those can be tougher to negotiate when a second mortgage is involved
ldquoIf we are not going to help these people who are staying in their homes and trying to do the right thing If they are getting hit with these resets on the seconds and they are already struggling with the first hellip and finally giving up hellip the best solution is a short salerdquo she said
ldquoIrsquom having a huge number of these folks resetting and not knowing what to dordquo Marron continued ldquoMy fear is that there is a wave of trouble coming if we donrsquot look at it nowrdquo
The conversation doesnrsquot become is your rate going up itrsquos how much is it going up Theyrsquore at the end of their journey I think yoursquoll see a rush for the door
Ted KohnSenior Mortgage Planner
RPM Mortgage IncManhattan Beach Calif
7
MARCH 2015
MY TAKE By Leonard Kiefer Deputy Chief Economist Freddie Mac
The spring home buying season is underway Between now and the end of June wersquoll see about 40 percent of all home sales for the year So these next few months will essentially tell us whether or not 2015 will be a good or bad year for housing markets
Overall wersquore feeling good about housing In fact we expect the best year for home sales and new home construction since 2007
Here are the top three reasons to be optimistic about housing markets in 2015
High AffordabilityAbout 80 percent of metro markets in the US are affordable based on data through the 4th quarter of 2014 on the three primary drivers of affordability house prices interest rates and income
Letrsquos look at the house price part of the equation first House prices continue to rise across the country but are still about 10 percent below their 2006 peak nationally But peak-to-trough comparison can be misleading as many markets experienced unsustainable highs during the last decade Instead when we look at fundamental drivers like payment-to-income and price-to-rent ratios we see that most markets have home values that are sustainable Of the top 50 metros we track in our Multi-Indicator Market Indexreg (MiMi) only Los Angeles has house prices that are elevated given household incomes and mortgage rates Prices remain attractive in most markets
Prices are especially attractive given that mortgage rates remain low the second affordability driver From January 2014 to January of 2015 mortgage rates fell nearly three-fourths of a percentage point Though rates have rebounded from their lows at the end of January rates are significantly below the level from one
year ago Low interest rates do a lot to help support homebuyer affordability But it is the third component mdash household incomendash that will be the key driver of housing markets Incomes have largely stagnated over the past decade barely rising and after adjusting for inflation actually falling for the median household But there have been glimmers of good news in the most recent jobs report which showed income up 22 percent year-over-year With a pickup in economic growth in the second half of 2014 households may be beginning to see a gradual pickup in wages Moreover improved job prospects have started to drive those in prime working ages 24 to 54 back to the labor force But this will require patience Not only were younger cohorts the hardest hit during the downturn there are also the ones struggling the most to get back on their feet Rising wages and salaries will do much to help propel housing markets forward but the full effects will take time
Spring Home Buying Kicks Off Best Year for Homes Sales in Seven Years
Continued Next Page
SOURCE Freddie Mac
8
MARCH 2015Rising RentsNot only is affordability high but rents have been rising rapidly across the country driven by strong demand nationwide Rents increased an average of 36 percent in 2014 and nearly 11 percent over the last three years With demand rising rapidly given the improved job prospects for younger households and vacancy rates at low levels we expect to see rents rise at or above inflation this year as well This may be the tipping point Many current renters may decide to strike while the iron is hot (mortgage rates are low and home prices not too high) and purchase a home this year
In fact study findings support that many feel it could make financial sense to buy today According to an online survey of over 2000 US adult renters commissioned by Freddie Mac and conducted by Harris Poll in November 2014 of those renters who said that they would ever consider buying a home 39 percent already think buying a home is a better financial option than renting
Expanded Credit AvailabilityBut will financing be available for these prospective homebuyers We believe it will be given the wider credit availability in the market today Even for those renter households hit by rising rents who have been unable to save much for a down payment but have good credit and a good-paying job
Broader access to credit will be driven by a confluence of factors including new products First more certainty for lenders through the enhanced representation and warranty framework will help ease credit overlays and facilitate more lending Second reduced premiums by the Federal Housing Administration will help many prospective first-time homebuyers enter the market with a federally insured loan Finally new 3 percent down mortgage products should help those qualified borrowers who have limited down payment savings buy homes with conventional financing These new products will be especially important for prospective first-time homebuyers that have been sitting on the sidelines According to the National Association of Realtors (NAR) Annual Survey of Home Buyers and Sellers the share of first-time buyers in the market fell to its lowest point in nearly three decades in 2014 mainly because rising rents and repaying student loan debt is making it more difficult to save for a down payment especially for younger adults
Unlike Punxsutawany Phil who predicted six more weeks of winter wersquore much more optimistic about the spring home buying season and home sales overall in 2015 We expect that a rapidly improving labor market income growth and only a gradual increase in mortgage rates will support the best year for home sales and new home construction since 2007 with home sales increasing nearly 4 percent from last year and new home construction up nearly 20 percent
Sources Freddie Mac House Price Index Reis Inc Freddie Mac February Outlook
Leonard Kiefer was appointed to the position of Deputy Chief Economist in December 2012 As the Deputy Chief Economist Kiefer is responsible for primary and secondary mortgage market analysis and research macroeconomic analysis and forecasting Kiefer is also involved in the analysis of policy issues affecting the housing industry
Kiefer joined Freddie Mac in 2009 as a Senior Economist He was previously an assistant professor at Texas Tech University in Lubbock Texas where he conducted research on macroeconomics and monetary policy He has also taught economics at The Ohio State University and finance at George Mason University
Kiefer holds a BA in economics from the University of Kentucky and a PhD from The Ohio State University
84
76
58
46 47 45 46
50
55 54 56
58
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Total Home Sales (Millions) Source NAR CensusHUD Freddie Mac
Forecast
SOURCE Freddie Mac
9
MARCH 2015
Realtor Sentenced to 3 Years in PrisonA Seal Beach Calif real estate agent was sentenced to 3 years in federal prison for operating a $14 million fraud scheme in California that bilked investors who paid money in response to false promises of ownership in commercial real estate according to the US Attorney
Karen Hanover 48 was sentenced by United States District Judge Josephine Staton Judge Staton scheduled a May 8 hearing to determine how much restitution should be paid to approximately 45 victims
Hanover pleaded guilty last year to one count of mail fraud related to the scheme she ran out of two Long Beach companies mdash Commercial Investment Education LLC and Kharmic Life Strategies Inc ldquoFast Trackrdquo investment program to investors who attended seminars in Southern California Dallas and Las Vegas
Victims were induced to invest between $19000 and $29000 in the real estate scam In her pitches Hanover ldquofalsely represented to the lsquoFast Trackersrsquo that she would partner with them in real estate deals they would receive 100 percent returns on their investments and she would provide a 100 percent refund if they did not obtain a commercial property within a yearrdquo according to court documents that noted these promises were false
SOURCE US Attorney
Brokerage Realogy Launches Search PortalMove Inc which is owned by News Corp and operates the NRT the nationrsquos largest residential real estate brokerage has launched a new home search portal mdash HomesForSalecom mdash a national property portal to compete with Zillow Trulia and Move
NRT is the subsidiary of Realogy that operates real estate brokerages under Realogyrsquos Coldwell Banker Coldwell Banker Commercial Sothebyrsquos International Realty and Zip Realty brands It also owns regional brands The Corcoran Group and Citi Habitats NRT has over 42000 agents and operates over 700 offices in the US
SOURCE News Corp
Vanilla Ice Arrested for Alleged BurglaryRapper-turned rehabber Vanilla Ice was arrested Feb 18 2015 for an alleged home burglary in Lantana Fla
The former rapper whose real name is Robert Van Winkle was arrested in Lantana Fla accused of stealing furniture from a neighborrsquos home
According to Lantana police furniture a swimming pool heater and bicycles were found at Van Winklersquos property and later returned to the owner He is currently renovating a home adjacent to the property in which the items were stolen police said
Van Winkle has a home renovation show on the DIY Network ldquoThe Vanilla Ice Projectrdquo where he and a crew refurbish foreclosed or distressed homes around Palm Beach County
SOURCE Sun-Sentinel
Realtor Safety Survey The recent death of a South Florida home shopper gunned down while looking at a home in Fort Lauderdale on February 27 has the real estate industry talking about safety
Despite several tragedies in the residential real estate world over the last few years a new survey from the National Association of Realtors found that 96 percent of Realtors have never been a victim of crime But 40 percent of Realtors have found themselves in situations where they fear for their safety the survey found
The survey found that one-third of the 3000 Realtors surveyed said they carry a self-defense weapon Female Realtors are more likely to carry pepper spray while male Realtors more commonly carry a firearm Many agents 38 percent have participated in self-defense classes and 13 percent use a smart phone safety application to track their whereabouts or alert colleagues of an emergency
SOURCES National Association of Realtors Sun-Sentinel
NEWS BRIEFS
10
MARCH 2015
Trulia Will Lose Listing Data in April The online battle between Move Inc and Zillow Group flared up again
Listing syndicator ListHub will stop supplying listings on April 7 giving the nationrsquos second largest real estate listing site less than a month to find an alternative source for more than a quarter of its listings
On Feb 23 a San Francisco judge granted Trulia Inc a temporary restraining order to keep receiving listings data from ListHub
ListHub mdash which is owned by realtorcom and operated by Move Inc a News Corp subsidiary mdash announced Feb 20 that it had terminated its syndication agreement with Trulia in the wake of its acquisition by Zillow and would stop sending listings to Trulia on Feb 26
According to a copy of Truliarsquos complaint obtained by Inman News Trulia which could lose 25 percent of its listings data filed a 52-page complaint against Move Inc in San Francisco Superior Court claiming breach of contract Judge Ernest H Goldsmith scheduled a March 12 court hearing to determine whether or not to compel Move to abide by the original June 19 2016 termination date of its agreement with Trulia
Both Zillow and Trulia will lose listing information from ListHub when the contract between those two entities expires
SOURCES Inman News Courthouse News
W Va Supreme Court Rules in Favor of MERS On February 5 the Supreme Court of Appeals of West Virginia held that the recording of trust deeds do not have to be recorded at the office of the clerk of the county commission
In State of W Va v Waren McGraw the Court disagreed with Wyoming Countyrsquos claims that the recording of trust deed assignments in county record books is required by state law ldquoin order to clear title to properties in the Countiesrdquo While the Counties did not name MERSCORP Holdings Inc or Mortgage Electronic Registrations Systems Inc (MERS) as a defendant in the case the allegations in the complaint were focused on challenging the operations of MERS and the MERSreg System
In his opinion West Virginia Supreme Court of Appeals Justice Menis E Ketchum II said that ldquorecording statutes in West Virginia do not require that the assignment of a trust deed be recorded in the office of the clerk of the county commissionrdquo
SOURCE W Va v Warren McGraw
MetLife Fined $123M for Bad LoansMetLife will cough up $1235 million to settle claims that it knowingly approved federally insured home loans for people who didnrsquot qualify according to the US Justice Department
As part of the settlement MetLife Home Loans admitted that its predecessor mdash MetLife Bank mdash repeatedly certified for Federal Housing Administration insurance on mortgage loans that didnrsquot meet federal underwriting requirements between 2008 and 2012
Furthermore MetLife admitted that the bank knew a large number of the loans were not eligible for FHA mortgage insurance through its own quality control practices Between 2009 and 2010 the bank discovered that anywhere from 25 to 60 percent of these loans were seriously deficient mdash findings that were regularly shared with the bankrsquos CEO and its directors the Justice Department said
Over a two-year period the bank self-identified 1097 mortgages insured by the FHA that were seriously deficient but only reported 321 of them to the Department of Housing and Urban Development As a result FHA insured hundreds of home loans that werenrsquot eligible mdash causing the agency to suffer serious losses when it later paid insurance claims on the loans
ldquoMetLife Bankrsquos improper FHA lending practices not only wasted taxpayer funds but also inflicted harm on homeowners and the housing market that lasts to this dayrdquo said Acting Assistant Attorney General Joyce R Branda of the Justice Departmentrsquos Civil Division ldquoAs this settlement shows we will continue to hold accountable financial institutions that elected to ignore the rules and to pursue their own financial interests at the expense of hardworking Americansrdquo
SOURCE Justice Department
LEGAL BRIEFS
11
MARCH 2015
Housing Rising Student Loan DebtGrowing student loan debt is weighing down on an already tepid housing market according to fresh data from the New York Federal Reserve Rising student loan debt is shutting out potential buyers A new report from the Federal Reserve shows that student loan debt rose in the fourth quarter of 2014 to a record $116 trillion dollars Thatrsquos 7 percent higher than the year before And delinquencies are rising too with current default rates at more than 11 percent Historically first-time home buyers are people in their 20s and 30s but this same age group is carrying a majority of that $116 trillion in loan debt According to the Fed the rising student loan debt is decreasing both household formation and home ownership Labor market growth and higher wages will help shrink student loan debt according to economists
Rents New York Rents Too HighNew Yorkers are now spending approximtely 60 percent of their income to live in Manhattan according to a new study by the website Streeteasy The median monthly New York rent hit $2700 mdash or more than 58 percent of residentsrsquo median income Residents in Brooklyn pay the highest median rent cost mdash 60 percent Surprisingly Manhattanites arenrsquot the worst off Residents in Brooklyn pay the highest median rent cost mdash 60 percent They are followed by those living in the Bronx at 52 percent Manhattan at 49 percent Queens at 41 percent and Staten Island at 30 percent
Trends Millennials Lead All BuyersThe millennial generation represented the largest share of recent home buyers according to a new report from the National Association of Realtors The 2015 National Association of Realtors ldquoHome Buyer and Seller Generational Trends Reportrdquo found that an overwhelming majority of buyers search for homes online and then purchase their home through a real estate agent with millennials also known as Gen Y using agents the most With millennials entering the peak buying period and expected to soon surpass boomers in total population the NAR believes the share of millennial purchases would be higher if not for the numerous obstacles that have slowed their journey to homeownership
Study Consumer Confidence Grows Consumer optimism toward the economy is growing and appears to be contributing to further improvement in overall housing sentiment according to Fannie Maersquos National Housing Survey Most consumers expect home rental prices to continue to rise in the next year but 43 percent still think it is too difficult to get a mortgage the survey found The share of respondents who believe the economy is headed in the right direction increased 3 percentage points in February to an all-time survey high of 47 percent while the those who believe it is headed in the wrong direction decreased to 45 percent a new survey low ldquoWe continue to see strength in attitudes about the current home buying and selling environment and consistently high shares of consumers saying they expect to buy a home on their next moverdquo said Doug Duncan senior vice president and chief economist at Fannie Mae
Tech Smart Homes Sell Faster As smart home technology plays a larger role in real estate Coldwell Banker Real Estate LLC recently released a survey uncovering what smart features home buyers are looking for when purchasing a home and how those features impact a home sale Coldwell Banker also published a list of 25 smart home products and systems in the categories that matter most to buyers A survey of 500 Coldwell sales associates found that 62 percent of buyers want to control their home from their smart phone or tablet One third (33 percent) said that homes with smart home technology sell faster than homes without them Gen X (age 35-49) is the ldquosmartestrdquo generation of home buyers interested in smart home technology today the survey found
Study Remodeling RecoveryThe $300 billion US home improvement industry is faring much better than the broader housing market according to a new report from the Joint Center for Housing Studies of Harvard University ldquoEmerging Trends in the Remodeling Marketrdquo is the latest in the Improving Americarsquos Housing series published by the Joint Center While new home construction is many years away from full recovery the Center reports that Americarsquos home improvement industry could post record-level spending in 2015 with kitchen and bath upgrades leading the way
FINANCIAL BRIEFS
12
MARCH 2015
By Octavio Nuiry Managing Editor
North Carolina Teeing Up Real Estate in the Tar Heel State
In the game of golf an eagle mdash two strokes under par mdash is good news
In the real estate game buying a home located on a golf course is like sinking a housing eagle Not only do you waking up every morning to the possibility of golfing every day but many golf communities are attractive to buyers because of their safety beauty and quality of life
In 2013 Americans bought 717000 vacation homes up 30 percent from a year earlier and proximity to a golf course was a decisive factor for a third of the buyers according to the National Association of Realtorsrsquo 2014 Investment and Vacation Buyers Survey The median price of a vacation home in 2013 was $168700 up 125 percent from 2012
In the Tar Heel State golf and real estate are frequently tied together In North Carolina the vast geographical diversity provides golf home buyers with a wide choice of locations whether coastal inland or mountain From the shores of the Outer Banks to the rolling hills of the Black Mountains golf courses pepper the statersquos landscape Nearly 50 years after Hilton Head Island SC ushered in the first master-planned golf home community North Carolina is slowly recovering from the housing downturn
According to David Lott publisher and founder of Golfcoursehomenet golf communities were hit hard during the recent housing downturn Lott said since the recession the number of courses closing has outnumbered the courses opening He said North Carolina golf communities are slowly rebounding Golf communities in the remote western mountains
Continued Next Page
STATE SPOTLIGHT
Where Most of the Properties Come With a Club Membership AttachedTHREE FOR SALE
Resort community living at its finest in this beautiful all brick three bedroom home on a private wooded lot with wa-ter views and transferable Pinehurst Country Club membership (the buyer pays half initiation fee to join) Agent Sue Boynton Pinehurst Resort Realty (704) 564-8139 wwwpinehurstresort-realtycom
Built in 2006 this brick home on the 18th fairway of the Beacon Ridge golf course has four bedrooms and three baths Club membership attached Agent Dawn Crawley Pinehurst Resort Realty (910) 783-7993 wwwpinehurstresortre-altycom
Located on Pinehurst No 2 golf course this home has four bedrooms and five baths and is walking distance to the His-toric Village of Pinehurst The home is located in Pinehurstrsquos prestigious gated community Fairwoods 7 Agent Marga-ret Chirichingo Pinehurst Resort Realty (704) 564-8139 wwwpinehurstresortre-altycom
WHAT 3-bedroom homeHOW MUCH $225000
WHAT 4-bedroom houseHOW MUCH $399000
WHAT 4-bedroom homeHOW MUCH $1499000
13
MARCH 2015
of North Carolina were hit hardest Lott said
ldquoThe recovery started on the shores of the Atlantic and is slowly working its way inlandrdquo said Lott a former reporter for Golf Digest referring to the westward movement of North Carolinarsquos golf real estate recovery ldquoThe pace of the recovery is going to be different in the various geographical areas The mountain areas are still having the most troublerdquo
During the recent real estate boom developers and home buyers believed residential golf communities were a sure-fire bet Many buyers purchased properties to flip for a quick profit Others were lured for the country club amenities stunning views and security of the gated communities While there are no reliable data on the growth of master-planned golf communities real estate brokers and market analysts say the market is slowly recovering
Clearly the recession of 2008 sliced the growth of golf communities into the rough According to the National Golf Foundation only 14 new courses opened in the United States in 2014 the fewest in 25 years while almost 160 of the countryrsquos 14600 18-hole golf facilities shut down Last year marked the eight straight year that more courses closed than opened
Pinehurst Central North Carolina At Pinehurst (No 2) the luxurious golferrsquos resort in the arid sand hills of south-central North Carolina housing prices remain comparatively reasonable considering that most of the property in Pinehurst comes with a membership to Pinehurst Country Club Pinehurst and its surrounding communities mdash known locally as ldquothe Sandhillsrdquo mdash is located in Moore County Pinehurst is transiting from a playground for retirees into a younger family-friendly resort according to Sue Boynton an associate broker with Pinehurst Resort Realty in Pinehurst NC
ldquoA lot of the buyers here in Pinehurst are from the northeastrdquo said Boynton an avid golfer who lives in the Doral Woods golf community in Pinehurst ldquoBut there are a lot from Charlotte toordquo
As one of the countryrsquos first golf resorts Pinehurst is viewed as the cradle of the sport Pinehurst which ranks 16th on Golf Magazinersquos list of Top 100 Courses in the World is located 60 miles southwest of Raleigh No golf community in America is as rich in golf history as Pinehurst which is home to 42 golf courses many of them world renowned Last year for example the 120-year old Pinehurst resort hosted two of golfrsquos greatest stateside productions mdash the US Menrsquos Open and the Womenrsquos Open Golfers Vickie and David Bowles who purchased a historic home on the tee box of hole 5 on Pinehurst (No 2) in 2013 said they enjoy the layback atmosphere of the Pinehurst Village ldquoOne thing I love about Pinehurst is that I get to spend time with my husbandrdquo said Vickie Bowles referring to time together on the links with her husband David ldquoI had to learn golf and he had to
learn how to snow ski The weather is exceptional and the wersquore close to the mountains and the beaches of North Carolinardquo Built in 1895 on 5500 acres of the Sandhills region of North Carolina the Village of Pinehurst was originally developed as a health resort for patients recovering from tuberculosis As the popularity of North Carolina has surged so have real estate prices Home sites of $600000 are common And homes priced above $5 million donrsquot turn heads Boynton said She said most of the Pinehurst properties come with a membership to the Pinehurst Country Club Property ownership is the only requirement for membership said Bowles
ldquoPinehurst Resort is uniquerdquo said Boynton ldquoIf somebody loves golf Pinehurst is the place to be Itrsquos becoming a neighborhood-friendly community It is
Continued Next Page
David LottFounderPublisher
GolfCourseHomecom Vineyard Haven Mass
The recovery started on the shores of the Atlantic and is slowly
working its way inland The pace of the recovery is going to be different in the various geographical areas The
mountain areas are still having the most
trouble
14
MARCH 2015
increasingly transitioning to younger familiesrdquo
To become a member of the Pinehurst Country Club you have to own property in Pinehurst said Boynton Pinehurst home buyers are required to pay a $12500 transfer fee which is often included in the purchase price and $381 in monthly dues
ldquoPeople are still buyingrdquo said Boynton citing that people from all over the world come to Pinehurst and nearby Southern Pines to play golf and ride horses The area is rural with horse properties and farms Increasingly she said non-golfers are buying in golf communities
According to a survey conducted by Better Homes and Gardens Real Estate 57 percent of baby boomers say they plan to move to a new home in retirement When asked which type of community they were likely to choose 39 percent said a small town like Pinehurst or a rural community The next choice was a 55-and-older community (27 percent) followed by urban living (26 percent) and 25 percent said they would buy a second home such as a vacation beach house or a golf course community
Golf went mainstream in America in the 1890s according to Richard J Moss author of ldquoThe Kingdom of Golf in Americardquo a rich and colorful history of the sport Its popularity and its fortune has waxed and waned in response to larger economic events As America prospered in the 20th century public courses opened alongside private clubs and exposed more people to the sport Between 1992 and 2001
at least 60 percent of new golf courses were tied to property developments writes Moss Golf courses increase the value of surrounding homes and developers built long complicated courses with the hope of attracting tournaments and selling more homes
Moss points out that golf and real estate deals have always been connected Nationwide approximately 60 percent of golf courses are linked to real estate development claims Moss Courses came to be designed with premium-priced houses bordering fairways similar to houses bordering beaches
Moss believes that neither the recession nor the eclipse of its brightest star can stymie professional golf Today according to Moss there are roughly 16000 golf courses in America half or more of the golf courses in the world Average prize money for a PGA Tour event doubled between 2000 and 2010 from $33 million to $6 million reports
Continued Next Page
If somebody loves golf Pinehurst is the place to be Itrsquos becoming a
neighborhood-friendly community It is
increasingly transitioning to younger families
Sue BoyntonAssociate Broker
Pinehurst Resort Realty Pinehurst NC
Pinehurst Resort amp Country Club - No 4 Pinehurst NC
15
MARCH 2015
the Economist In 2014 professional golfers were some of the highest paid athletes in America Phil Mickelson the amiable left-hander ranked 6th nationwide making $37 million according to Fortune Magazine Tiger Woods despite his back problems and not winning a major tournament since 2008 ranked 7th pulling in $35 million
According to the latest list of Golf Digestrsquos top 100 public and private golf courses in the US five North Carolina courses make the cut Leading the list is Tom Fazio-designed Wade Hampton Gold Club in Cashiers NC Pinehurst No 2 was the next highest course ranked on the list coming in at 28 on the list Rounding out the top five are all Fazio designs including Mountain Golf and Lake Club in Cashiers (No 78) Eagle Point Golf Club in Wilmington (No 89) and Diamond Creek Golf Club in Banner Elk (No 94)
Western North Carolina In the mile-high mountains of western North Carolina some of the best golf real estate is found atop the famed Blue Ridge Mountains the tallest peaks of the eastern United States
ldquoOur area is considered the worldrsquos premier mountain golf mecca with two of the top three mountain golf clubs in the world Wade Hampton Golf Club and Mountaintop Golf and Lake Clubrdquo said Bill Kruckenberger brokerowner of Sapphire Valley Real Estate in Sapphire NC ldquoBoth are Fazio courses also considered to be in the top 100 courses worldwide There are a ton of high-end mountain golf courses on our very small mountain plateau (including Bobby Jones summer club Highlands Country Clubrdquo
Kruckenberger knows a thing or two about golf Although hersquos not a golfer he sold the arearsquos public golf course Sapphire National Golf Club not once mdashbut twice
Continued Next Page
Bill KruckenbergerBrokerOwner
Sapphire Valley Real Estate
Sapphire NC
Our area is considered the worldrsquos premier mountain golf mecca with two of the
top three mountain golf clubs in the world
Perched 4400 feet atop the Blue Ridge Mountains buyers can enjoy big moun-tain views from this three bedroom and 3 bath Sapphire Valley Resort home Membership in the Sapphire National Golf Club is included Agent Bill Kruck-enberger Sapphire Valley Real Estate (828) 506-8398 httpwwwsapphirev-alleypropertiescom
WHAT 3-bedroom homeHOW MUCH $585000
This custom golf community home has five bedrooms and three baths Located minutes from Asheville this home is a golfers dream Agent Jeff Stewart Keller Williams Professionals (828) 337-8837 httpwwwbrokerjeffnet
WHAT 5-bedroom houseHOW MUCH $484900
Located on Wade Hamptonrsquos 8 fairway this two-story home has five bedrooms and seven baths and is walking dis-tance to the clubhouse This golf-front mountain home is located in township of Cashiers NC in a prestigious gated community Agent Bill Kruckenberger Sapphire Valley Real Estate (828) 506-8398 httpwwwsapphirevalleyproper-tiescom
WHAT 5-bedroom homeHOW MUCH $2975000
THREE FOR SALE Western North Carolina Golf Homes
16
MARCH 2015Nestled 4000 feet in the Great Smoky Mountains the golfing community of Wade Hampton is a luxury North Carolina mountain real estate golf community 65 miles southwest of Asheville
Kruckenberger has a healthy business selling to second-home buyers and retirees and renting many of those homes out to vacationers He said home prices at Wade Hampton range from $700000 for a cottage to $5 million At Sapphire National Golf Club a two-
bedroom condominium sells for $150000 and homes can sell as high as $5 million
ldquoOur area is 90 percent second-home buyersrdquo he said ldquoA good number are retirees Most buyers are out of state Florida is the number one source of buyers in our area They come to escape the heat in Florida and enjoy the cool mountain air We have a good number of buyers from South Carolina and Georgia And Texans are coming in drovesrdquo
Coastal North Carolina Increasingly golf communities offer a country club experience with swimming tennis spas fine dining and waterfront homes Maritime golf real estate resorts abound along North Carolinarsquos Atlantic coast In southeastern North Carolina along the statersquos 300-mile Atlantic coast some top-notch golf resorts await buyers who like seaside second home properties according Vance Young a broker with Intracoastal Realty in Wrightsville Beach NC
Young said coastal golf home buyers are seeking other amenities beside golf
Continued Next Page Wade Hampton Golf Club Cashiers NC
17
MARCH 2015ldquoAs far as general trends I do see and emphasis on location good shopping access to medical care and transportationrdquo said Young a top producer who sold 125 homes last year for $81 million in sales ldquoBuyers are becoming more demanding and more selective These additional amenities have become critically important the last few yearsrdquo
At Landfall a 2200 acre gated development with 1600 homes nestled along the coast near Wrightsville Beach and Figure Eight Island just nine miles northeast of Wilmington NC buyers can enjoy golf homes at the Country Club of Landfall which offers 45 holes of championship golf 27 designed by Jack Nicklaus and 18 crafted by Peter Dye said Young
Young said buyers are attracted by Wilmington NC the riverfront community along Cape Fear River which features a Riverwalk with over 200
restaurants and shops
In Landfall a golf course townhomes start at $300000 and go up to $700000 he said Single family homes range from $500000 to $5 million The closer you are to the beach the more expensive the homes become
ldquoMost of the residents of Landfall mdash 85 to 90 percent mdash are primary residentsrdquo said Young the No 1 ranked broker in Hanover County who specialize in waterfront and golf resort communities of Wrightsville Beach Figure Eight Island and Landfall ldquoBut we also have a large contingent of second-home owners who come largely from the east coast especially Virginia DC New York and New Jerseyrdquo
As American golf enters the second century of existence it faces a supply-and-demand dilemma too many courses and not enough players But in North Carolina golf real estate is soaring like an eagle
Coastal North Carolina Golf Homes
Vance YoungBroker
Intracoastal RealtyWrightsville Beach NC
As far as general trends I do see an emphasis on location good shopping access to medical care
and transportation
Overlooking the second tee of the Jack Nicklaus golf course at the Country Club of Landfall this beautiful four bedroom five bath Landfall NC French Country inspired design home has a pool and is move-in ready Agent Vance Young In-tracoastal Realty Corp (910) 232-8850 httpVanceYoungcom
This Landfall brick home has four bed-rooms and four baths wit 10 foot ceil-ings and 8 foot doors throughout This Steve Dunn built home is walking dis-tance to the Country Club of Landfall Agent Vance Young Intracoastal Re-alty Corp (910) 232-8850 httpVanc-eYoungcom
WHAT 4-bedroom homeHOW MUCH $769000
Built in 2006 this brick home overlooks the Jack Nicklaus Pines 4 fairway in Landfall NC It has three bedrooms and four baths The home features granite kitchen stainless appliances and a five burner gas range Agent Alison Bern-hart Landfall Realty LLC (800) 227-8208 httpwwwlandfallrealtycom
WHAT 3-bedroom houseHOW MUCH $689000
WHAT 4-bedroom homeHOW MUCH $1199900
THREE FOR SALE
18
MARCH 2015BOOK REVIEWThe GM Building New Yorkrsquos Most Sought After PropertyBy Octavio Nuiry Managing Editor
The General Motors Building isnrsquot the most iconic building in New York City Nor is it the tallest or most elegant But something about the glemming 50-story white marble tower that real estate tycoons canrsquot resist
In ldquoThe Liarrsquos Ball The Extraordinary Saga of How One Building Broke the Worldrsquos Toughest Tycoonsrdquo (Wiley 2014) Vicky Ward lifts the veil on New York Cityrsquos cutthroat world of high-stakes real estate shining the
spotlight on the half-century fight to own one of Americarsquos most desired pieces of real estate the General Motors Building on 5th Avenue in Manhattan
The book largely tells the tragic rise-and-fall of flamboyant New York real estate developer Harry Macklowe who in 2003 engineered the biggest real estate transaction in US history when he bought the GM Building for an unprecedented $14 billion in borrowed funds
Not only does Ward chronicle Macklowersquos recklessness but the book also is an entertaining behind the scenes glimpse at a cast of high-powered New York City real estate tycoons who lie cheat steal mdash and sue each other mdash to acquire NYC trophy properties
The colorful book which spans 150 years of New York real estate history not only documents the history of the GM Building
but some of its flowery suitors including the corrupt politician William ldquoBossrdquo Tweed Cecila Banatter the ldquohousewife tycoonrdquo too busy to name her baby Max Rayne the English property developer who snapped up the iconic Savoy-Plaza Hotel (site of the future GM Building) Disque D Deane the unlovable rogue financier Rita Jenrette Harry Macklowe and Donald Trump She shows how grown men mdash and some powerful women mdash behave like children when their toys are taken away from them
Built by General Motors for corporate offices and a show room on the southeast corner of Central Park in 1968 the GM Building is not New Yorkrsquos tallest skyscraper or most beautiful but it is
desirable in the real estate world for its location across from the Plaza Hotel But itrsquos an iconic trophy tower mdash the most expensive office tower in America mdash that occupys an entire city block and has brought out the worst in a string of landlords from Bill Zeckendorf to Harry Macklowe writes Ward General Motors Co later sold the building but maintained a sizeable presence as a tenant for years
The bookrsquos title comes from the annual black tie gala that the Real Estate Board of New York throws itself every January at the Hilton Grand Ballroom
ldquoEvery year toward the end of January around 2000 members of the New York real estate industry gather at the Hilton to celebrate hellip an event affectionately known by its attendees as lsquothe
Liarrsquos Ballrdquo writes Ward ldquoItrsquos rough itrsquos vulgar and itrsquos a riveting showrdquo
Ward is a New York-based British-born investigative journalist and former contributing editor at Vanity Fair
In 1998 Donald Trump teamed up with financial services company Conseco to buy the building for $878 million from GM which relocated back to Detroit Trump cleaned up the white marble
The Liarrsquos BallBy Vicky Ward
(Wiley 240 pages $2995)
Continued Next Page
Every year toward the end of January around 2000 members of the New York
real estate industry gather at the Hilton to celebrate hellip an event affectionately known
by its attendees as lsquothe Liarrsquos Ball Itrsquos rough itrsquos vulgar and
itrsquos a riveting show
Vicky Ward Author
ldquoThe Liarrsquos Ballrdquo
19
MARCH 2015
walls put in new granite floors emblazed his name on the front of the building and raised rents By 2001 Trump had a chance to buy the entire building for $995 million but he hesitatedTrumprsquos loss was Macklowersquos gain In 2003 Macklowe bought the GM Building from Trump and Conseco for a then-record price of $14 billion Soon Macklowe convinced Steve Jobs then CEO of Apple to open a subterranean flagship store with a glass cube in front of the GM Building It opened in 2006 and was a retail success Now the Apple Store is one of New Yorkrsquos major retail locations
ldquoFor four year Macklowe was riding high after his unexpected success with the GM Building where his visionary ideas mdash including the creation of the iconic Apple flagship store in the basement mdash created $1 billion in valuerdquo writes Ward
Soon however Macklowersquos luck ran out
Convinced he could pull off an even bigger deal Macklowe put
the building up as collateral for a $72 billion loan but the market turned and Macklowe lost the GM Building He sold the building for $28 billion in 2008
The $28 billion price tag remains the highest price ever paid for a single office building in the US
Today the General Motors Building is owned by Boston Properties (which controls 60 percent of the ownership) Chinese developer Zhang Xin and Brazilrsquos Safra Group (each owning a 20 percent stake) The latest deal values the property at $34 billionBut not everyone is a fan of the book
Donald Trump told the New York Post that ldquothe book doesnrsquot capture the essence the glamour or excitement of what happenedrdquo On Twitter Trump wrote ldquoJust finished reading a poorly written and very boring book on the GM Buildingrdquo calling Ward a ldquothird rate writerrdquo
The General Motors Building
DOWNLOAD REALTYTRACrsquoS FREE 2014 GUIDE TO SHORT SALES
State Rank
State Default Auction REO Total 1every X HU (rate)
Δ from Jan 2015
Δ from Feb 2014
US Total 31753 45880 24305 101938 1295 -429 -939
14 Alabama 0 1370 312 1682 1295 6555 2359
30 Alaska 60 59 24 143 2144 1917 2222
24 Arizona 0 1216 395 1611 1775 -2076 -2603
41 Arkansas 0 220 158 378 3494 -979 -503
13 California 5029 4301 2208 11538 1190 -793 -1161
26 Colorado 0 888 267 1155 1924 -2539 -1012
31 Connecticut 234 146 309 689 2158 -5238 -5834
8 Delaware 202 171 53 426 957 -819 1123
District of Columbia 5 37 2 44 6780 23846 52857
3 Florida 3576 7373 4844 15793 570 -1496 -3469
17 Georgia 0 1881 1014 2895 1414 1135 -2834
39 Hawaii 61 47 87 195 2678 598 773
5 Idaho 523 185 56 764 877 2797 11105
7 Illinois 2676 1649 1515 5840 906 -1917 -1051
4 Indiana 1225 1270 721 3216 871 1798 2289
21 Iowa 453 210 138 801 1674 6182 -3223
22 Kansas 231 347 139 717 1723 2535 5689
34 Kentucky 102 534 209 845 2284 4322 1544
27 Louisiana 272 444 297 1013 1949 846 -3494
37 Maine 127 86 62 275 2625 -3514 -5150
1 Maryland 1650 1520 1061 4231 564 1010 -087
32 Massachusetts 746 373 156 1275 2203 897 5269
16 Michigan 746 2178 1030 3208 1412 1154 484
40 Minnesota 0 470 315 785 2999 -2758 -1771
45 Mississippi 0 180 57 237 5390 -1350 33091
35 Missouri 0 706 352 1058 2565 -3424 -1314
49 Montana 0 26 19 45 10740 -1818 -2857
44 Nebraska 71 64 42 177 4521 -2063 11325
2 Nevada 1079 609 381 2069 569 687 1184
43 New Hampshire 0 93 53 146 4214 -4983 -6507
6 New Jersey 2283 1293 406 3982 895 -833 -1721
29 New Mexico 253 80 91 424 2128 -921 -1452
25 New York 3251 702 524 4477 1812 416 1948
10 North Carolina 2234 1107 657 3998 1088 053 10020
50 North Dakota 0 3 2 5 64942 6667 6667
9 Ohio 1480 2138 1505 5123 1000 -739 -590
33 Oklahoma 151 402 201 754 2215 2715 -157
12 Oregon 451 689 326 1466 1144 3512 7663
15 Pennsylvania 1299 1915 853 4067 1368 1118 860
42 Rhode Island 0 77 52 129 3585 -5770 -5257
11 South Carolina 872 734 293 1899 1129 717 -1364
47 South Dakota 0 22 24 46 7950 5862 222
23 Tennessee 0 1246 366 1612 1750 -1801 7315
28 Texas 3 3585 1185 4773 2110 1175 -033
20 Utah 173 366 96 635 1557 -2616 -2275
48 Vermont 0 22 12 34 9498 2143 12667
38 Virginia 0 965 315 1280 2642 -2228 -008
18 Washington 88 1316 637 2041 1421 -078 287
46 West Virginia 0 17 100 117 7529 12075 10526
19 Wisconsin 893 474 357 1724 1523 622 -3205
36 Wyoming 0 74 27 101 2604 5538 1744
February 2015 State-by-State Foreclosure Activity Summary
Rank Metro
Housing Units Per
Foreclosure Filing (Rate)
1 Tampa FL 495
2 Miami FL 539
3 Baltimore MD 547
4 Riverside CA 630
5 Chicago IL 721
6 Philadelphia PA 903
7 Washington DC 1113
8 Seattle WA 1213
9 Atlanta GA 1284
10 Los Angeles CA 1316
11 San Diego CA 1335
12 Detroit MI 1356
13 New York NY 1411
14 St Louis MO 1483
15 Phoenix AZ 1733
16 Dallas TX 1799
17 Minneapolis MN 2000
18 Houston TX 2155
19 San Francisco CA 2182
20 Boston MA 2763
TOP 20 Foreclosure rates in the
Nationrsquos 20 largest metros in February 2015
Housing News Report is a monthly publication dedicated to helping investors succeed by providing them with timely and relevant information about the housing market
EXECUTIVE EDITORDaren Blomquist
MANAGING EDITOROctavio Nuiry
WRITERSDaren Blomquist Octavio Nuiry Peter Miller
ART DIRECTIONEunice Seo
CONTACT USPhone 8003069886
LETTERS TO THE EDITORE-mail editorforeclosurenewsreportcomMail Housing News Report 1 Venture Plaza Suite 300 Irvine CA 92691
4
MARCH 2015out until you decide lsquooh shoot I have to do somethingrsquordquo
HELOC Payment ShockGiordano speaks from personal experience
ldquoIrsquom actually one of these people with a house that has a HELOC which will be maturing in the spring of 2016rdquo she said referring to a home equity line of credit loan ldquoI bought this house just prior to the market going crazy I was able to weather the storm with it when our market collapsed and it went upside downrdquo
But Giordano said when the HELOC adjusts it will add an extra $600 a month to her mortgage payment In her case the property has recently gone above water and now has some equity She plans to list it in April
But not all homeowners with HELOCs are so fortunate
RealtyTrac data shows that 18 million mdash 56 percent mdash of the 33 million still-active HELOCs taken out nationwide during the height of the housing bubble between 2005 and 2008 are still underwater Major markets with the highest percentage of underwater HELOCs are Las Vegas (89 percent) Orlando (79 percent) Riverside-San Bernardino in Southern California (78 percent) Sacramento California (76 percent) and Phoenix (76 percent)
Many of these HELOCs are scheduled to adjust at higher payments in the next five years
ldquoA lot of these seconds that were taken out as a home equity line of credit in 2004 to 2006 these were 30 year loans they were interest only for 10 years with then a 20-year fully amortized repayment period at the end of 10 yearsrdquo said Kathleen Kramer senior loan officer with JMJ Financial in Orange County California ldquoSo theyrsquore going to go from an interest-only payment to a 20 year fully amortized payment and that will be very painful for a lot of these homeownersrdquo
The RealtyTrac analysis of recasting bubble-era HELOCs shows the average payment will increase $146 a month more than double the interest only payment But payments might even quadruple in some cases where the interest loan converts to a 15-year or 10-year fixed instead of a 20-year fixed according to Ted Kohn senior mortgage planner with RPM Mortgage Inc
ldquoThe conversation doesnrsquot become is your rate going up itrsquos how much is it going uprdquo said Kohn who is based in Manhattan Beach California
ldquoWersquore getting calls constantly hellip people were enjoying their loan rates along with not wanting to nudge their equity line especially with prime being at 325 percentrdquo Kohn said noting that now that the HELOCs will soon be
Continued Next Page
5
MARCH 2015
recasting at fully amortizing payments homeowners know they need to act ldquoTheyrsquore at the end of their journey I think yoursquoll see a rush for the doorrdquo
Insult Added to Injury Frozen HELOCsKohn noted that for many HELOC borrowers the higher payments are coming on a credit line they havenrsquot been able to tap for several years because their bank froze the credit line when the financial crisis hit in 2008
ldquoItrsquos almost adding insult to injury because not only are they rolling over but these are people who have had their loans frozen for over five years nowrdquo he said ldquoThese lines are not something that people have been actively using for the last four or five years because they couldnrsquotrdquo
Kramer noted that homeowners in her market are often getting out ahead of the HELOC payment adjustment by more than a year
ldquoMost of them have been underwater for some time and now they have
equity in their homes again and what wersquore finding is that theyrsquore coming to us because they have maybe one year maybe they have 16 months until that loan starts to fully amortizerdquo she said ldquoSo theyrsquore trying to take advantage of the opportunity when they have it with the lower rates and convert these into a new 30-year fixed rate loanrdquo
The Cash-Out ChallengeWhile having equity helps itrsquos not always a panacea for the pain of a resetting
HELOC according to Kramer and Kohn
ldquoOne of the challenges that we see with that in todayrsquos marketplace is that Fannie Mae and Freddie Mac will consider those loans as a cash-out transactionrdquo Kramer said ldquoSo it makes it a little tougher You have to have more equity in the property and you have to have better scores or you get significant hit to the pricing on that new 30-year loanrdquo
ldquoThe pricing is absolutely horrid for a high balance cash-out refinance The premiums you pay are dauntingrdquo Kohn
Kathleen KramerSenior Loan Officer
JMJ FinancialOrange County Calif
So theyrsquore going to go from an interest-only payment to a 20 year fully amortized payment and that will be very painful for a lot of these homeowners
Continued Next Page
6
MARCH 2015said noting one solution hersquos found that works well for some of his clients with high-balance loans is to refinance them into jumbo loans ldquoOftentimes even the jumbo product has a better rate and with the jumbo product it goes by the old Fannie Mae rules (that donrsquot consider the transaction a cash-out refinance)rdquo
Of course the jumbo loan solution comes with its own challenges in the form of tighter debt-to-income limits and more documentation required according to Kohn
The Negative Equity ChallengeThe challenges are exponentially greater for homeowners without equity
ldquoWith equity we are seeing people cash out while they can but without we are seeing folks continue to try loan modifications stripping their seconds in BK (bankruptcy) short selling or unfortunately being foreclosed upon in many instancesrdquo said Brian Alper assistant vice president at Pacific Coast Title Company in Orange California
ldquoAt the 10-year mark yoursquore going to start seeing this become a big problemrdquo said Pam Marron a loan originator in Florida who started the website Housing Crisis Stories to address the continued problems many homeowners are still facing as a result of the housing crisis ldquoIf people are underwater they can do the HARP on the first but there is no relief for the HELOC unless they go delinquentrdquo
Marron was referring to the federal governmentrsquos Home Affordable Refinance Program designed to provide refinancing to underwater homeowners But the program is only applicable for mortgages backed by Fannie Mae and Freddie Mac and most HELOCs are not backed by the two government sponsered enterprises
No Hardship No HelpMarron said the only way many banks will provide relief to underwater homeowners with a recasting HELCO is if the homeowners are delinquent on their monthly payments evidence to the bank that the homeowner is truly experiencing a hardship
ldquoI canrsquot believe the banks are saying we canrsquot help you unless you go delinquentrdquo said Marron ldquoNo wersquore not
having a hardship but when this loan resets we are going to have a hardship Do you want to deal with it now or do you want to deal with it laterrdquo
According to the RealtyTrac analysis Florida mdash where Marron is based mdash has the second highest number of bubble-era HELOCs recasting over the next five years at 365739 and the third highest percentage of those recasting HELOCs that are underwater at 71 percent among all the states
Marron offered up two solutions for underwater homeowners with a recasting HELOC that would work better than the current practice of no hardship no help
First she recommends refinancing the HELOC at a lower interest rate and shorter term and make it fully amortizing right away
ldquo(The) borrower continues to make the same maybe a little bit higher payment and pay it down that much faster hellip Yoursquore definitely going to gain equity back that much quickerrdquo
This benefits the bank too according to Marron
ldquoDo the right thing and yoursquore still going to make moneyrdquo she said ldquoYoursquore not forgiving any part of the loan Yoursquore simply giving the consumer a vehicle to pay back the loan faster and yoursquore getting paid back soonerrdquo
Marronrsquos second solution is simply a short sale although those can be tougher to negotiate when a second mortgage is involved
ldquoIf we are not going to help these people who are staying in their homes and trying to do the right thing If they are getting hit with these resets on the seconds and they are already struggling with the first hellip and finally giving up hellip the best solution is a short salerdquo she said
ldquoIrsquom having a huge number of these folks resetting and not knowing what to dordquo Marron continued ldquoMy fear is that there is a wave of trouble coming if we donrsquot look at it nowrdquo
The conversation doesnrsquot become is your rate going up itrsquos how much is it going up Theyrsquore at the end of their journey I think yoursquoll see a rush for the door
Ted KohnSenior Mortgage Planner
RPM Mortgage IncManhattan Beach Calif
7
MARCH 2015
MY TAKE By Leonard Kiefer Deputy Chief Economist Freddie Mac
The spring home buying season is underway Between now and the end of June wersquoll see about 40 percent of all home sales for the year So these next few months will essentially tell us whether or not 2015 will be a good or bad year for housing markets
Overall wersquore feeling good about housing In fact we expect the best year for home sales and new home construction since 2007
Here are the top three reasons to be optimistic about housing markets in 2015
High AffordabilityAbout 80 percent of metro markets in the US are affordable based on data through the 4th quarter of 2014 on the three primary drivers of affordability house prices interest rates and income
Letrsquos look at the house price part of the equation first House prices continue to rise across the country but are still about 10 percent below their 2006 peak nationally But peak-to-trough comparison can be misleading as many markets experienced unsustainable highs during the last decade Instead when we look at fundamental drivers like payment-to-income and price-to-rent ratios we see that most markets have home values that are sustainable Of the top 50 metros we track in our Multi-Indicator Market Indexreg (MiMi) only Los Angeles has house prices that are elevated given household incomes and mortgage rates Prices remain attractive in most markets
Prices are especially attractive given that mortgage rates remain low the second affordability driver From January 2014 to January of 2015 mortgage rates fell nearly three-fourths of a percentage point Though rates have rebounded from their lows at the end of January rates are significantly below the level from one
year ago Low interest rates do a lot to help support homebuyer affordability But it is the third component mdash household incomendash that will be the key driver of housing markets Incomes have largely stagnated over the past decade barely rising and after adjusting for inflation actually falling for the median household But there have been glimmers of good news in the most recent jobs report which showed income up 22 percent year-over-year With a pickup in economic growth in the second half of 2014 households may be beginning to see a gradual pickup in wages Moreover improved job prospects have started to drive those in prime working ages 24 to 54 back to the labor force But this will require patience Not only were younger cohorts the hardest hit during the downturn there are also the ones struggling the most to get back on their feet Rising wages and salaries will do much to help propel housing markets forward but the full effects will take time
Spring Home Buying Kicks Off Best Year for Homes Sales in Seven Years
Continued Next Page
SOURCE Freddie Mac
8
MARCH 2015Rising RentsNot only is affordability high but rents have been rising rapidly across the country driven by strong demand nationwide Rents increased an average of 36 percent in 2014 and nearly 11 percent over the last three years With demand rising rapidly given the improved job prospects for younger households and vacancy rates at low levels we expect to see rents rise at or above inflation this year as well This may be the tipping point Many current renters may decide to strike while the iron is hot (mortgage rates are low and home prices not too high) and purchase a home this year
In fact study findings support that many feel it could make financial sense to buy today According to an online survey of over 2000 US adult renters commissioned by Freddie Mac and conducted by Harris Poll in November 2014 of those renters who said that they would ever consider buying a home 39 percent already think buying a home is a better financial option than renting
Expanded Credit AvailabilityBut will financing be available for these prospective homebuyers We believe it will be given the wider credit availability in the market today Even for those renter households hit by rising rents who have been unable to save much for a down payment but have good credit and a good-paying job
Broader access to credit will be driven by a confluence of factors including new products First more certainty for lenders through the enhanced representation and warranty framework will help ease credit overlays and facilitate more lending Second reduced premiums by the Federal Housing Administration will help many prospective first-time homebuyers enter the market with a federally insured loan Finally new 3 percent down mortgage products should help those qualified borrowers who have limited down payment savings buy homes with conventional financing These new products will be especially important for prospective first-time homebuyers that have been sitting on the sidelines According to the National Association of Realtors (NAR) Annual Survey of Home Buyers and Sellers the share of first-time buyers in the market fell to its lowest point in nearly three decades in 2014 mainly because rising rents and repaying student loan debt is making it more difficult to save for a down payment especially for younger adults
Unlike Punxsutawany Phil who predicted six more weeks of winter wersquore much more optimistic about the spring home buying season and home sales overall in 2015 We expect that a rapidly improving labor market income growth and only a gradual increase in mortgage rates will support the best year for home sales and new home construction since 2007 with home sales increasing nearly 4 percent from last year and new home construction up nearly 20 percent
Sources Freddie Mac House Price Index Reis Inc Freddie Mac February Outlook
Leonard Kiefer was appointed to the position of Deputy Chief Economist in December 2012 As the Deputy Chief Economist Kiefer is responsible for primary and secondary mortgage market analysis and research macroeconomic analysis and forecasting Kiefer is also involved in the analysis of policy issues affecting the housing industry
Kiefer joined Freddie Mac in 2009 as a Senior Economist He was previously an assistant professor at Texas Tech University in Lubbock Texas where he conducted research on macroeconomics and monetary policy He has also taught economics at The Ohio State University and finance at George Mason University
Kiefer holds a BA in economics from the University of Kentucky and a PhD from The Ohio State University
84
76
58
46 47 45 46
50
55 54 56
58
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Total Home Sales (Millions) Source NAR CensusHUD Freddie Mac
Forecast
SOURCE Freddie Mac
9
MARCH 2015
Realtor Sentenced to 3 Years in PrisonA Seal Beach Calif real estate agent was sentenced to 3 years in federal prison for operating a $14 million fraud scheme in California that bilked investors who paid money in response to false promises of ownership in commercial real estate according to the US Attorney
Karen Hanover 48 was sentenced by United States District Judge Josephine Staton Judge Staton scheduled a May 8 hearing to determine how much restitution should be paid to approximately 45 victims
Hanover pleaded guilty last year to one count of mail fraud related to the scheme she ran out of two Long Beach companies mdash Commercial Investment Education LLC and Kharmic Life Strategies Inc ldquoFast Trackrdquo investment program to investors who attended seminars in Southern California Dallas and Las Vegas
Victims were induced to invest between $19000 and $29000 in the real estate scam In her pitches Hanover ldquofalsely represented to the lsquoFast Trackersrsquo that she would partner with them in real estate deals they would receive 100 percent returns on their investments and she would provide a 100 percent refund if they did not obtain a commercial property within a yearrdquo according to court documents that noted these promises were false
SOURCE US Attorney
Brokerage Realogy Launches Search PortalMove Inc which is owned by News Corp and operates the NRT the nationrsquos largest residential real estate brokerage has launched a new home search portal mdash HomesForSalecom mdash a national property portal to compete with Zillow Trulia and Move
NRT is the subsidiary of Realogy that operates real estate brokerages under Realogyrsquos Coldwell Banker Coldwell Banker Commercial Sothebyrsquos International Realty and Zip Realty brands It also owns regional brands The Corcoran Group and Citi Habitats NRT has over 42000 agents and operates over 700 offices in the US
SOURCE News Corp
Vanilla Ice Arrested for Alleged BurglaryRapper-turned rehabber Vanilla Ice was arrested Feb 18 2015 for an alleged home burglary in Lantana Fla
The former rapper whose real name is Robert Van Winkle was arrested in Lantana Fla accused of stealing furniture from a neighborrsquos home
According to Lantana police furniture a swimming pool heater and bicycles were found at Van Winklersquos property and later returned to the owner He is currently renovating a home adjacent to the property in which the items were stolen police said
Van Winkle has a home renovation show on the DIY Network ldquoThe Vanilla Ice Projectrdquo where he and a crew refurbish foreclosed or distressed homes around Palm Beach County
SOURCE Sun-Sentinel
Realtor Safety Survey The recent death of a South Florida home shopper gunned down while looking at a home in Fort Lauderdale on February 27 has the real estate industry talking about safety
Despite several tragedies in the residential real estate world over the last few years a new survey from the National Association of Realtors found that 96 percent of Realtors have never been a victim of crime But 40 percent of Realtors have found themselves in situations where they fear for their safety the survey found
The survey found that one-third of the 3000 Realtors surveyed said they carry a self-defense weapon Female Realtors are more likely to carry pepper spray while male Realtors more commonly carry a firearm Many agents 38 percent have participated in self-defense classes and 13 percent use a smart phone safety application to track their whereabouts or alert colleagues of an emergency
SOURCES National Association of Realtors Sun-Sentinel
NEWS BRIEFS
10
MARCH 2015
Trulia Will Lose Listing Data in April The online battle between Move Inc and Zillow Group flared up again
Listing syndicator ListHub will stop supplying listings on April 7 giving the nationrsquos second largest real estate listing site less than a month to find an alternative source for more than a quarter of its listings
On Feb 23 a San Francisco judge granted Trulia Inc a temporary restraining order to keep receiving listings data from ListHub
ListHub mdash which is owned by realtorcom and operated by Move Inc a News Corp subsidiary mdash announced Feb 20 that it had terminated its syndication agreement with Trulia in the wake of its acquisition by Zillow and would stop sending listings to Trulia on Feb 26
According to a copy of Truliarsquos complaint obtained by Inman News Trulia which could lose 25 percent of its listings data filed a 52-page complaint against Move Inc in San Francisco Superior Court claiming breach of contract Judge Ernest H Goldsmith scheduled a March 12 court hearing to determine whether or not to compel Move to abide by the original June 19 2016 termination date of its agreement with Trulia
Both Zillow and Trulia will lose listing information from ListHub when the contract between those two entities expires
SOURCES Inman News Courthouse News
W Va Supreme Court Rules in Favor of MERS On February 5 the Supreme Court of Appeals of West Virginia held that the recording of trust deeds do not have to be recorded at the office of the clerk of the county commission
In State of W Va v Waren McGraw the Court disagreed with Wyoming Countyrsquos claims that the recording of trust deed assignments in county record books is required by state law ldquoin order to clear title to properties in the Countiesrdquo While the Counties did not name MERSCORP Holdings Inc or Mortgage Electronic Registrations Systems Inc (MERS) as a defendant in the case the allegations in the complaint were focused on challenging the operations of MERS and the MERSreg System
In his opinion West Virginia Supreme Court of Appeals Justice Menis E Ketchum II said that ldquorecording statutes in West Virginia do not require that the assignment of a trust deed be recorded in the office of the clerk of the county commissionrdquo
SOURCE W Va v Warren McGraw
MetLife Fined $123M for Bad LoansMetLife will cough up $1235 million to settle claims that it knowingly approved federally insured home loans for people who didnrsquot qualify according to the US Justice Department
As part of the settlement MetLife Home Loans admitted that its predecessor mdash MetLife Bank mdash repeatedly certified for Federal Housing Administration insurance on mortgage loans that didnrsquot meet federal underwriting requirements between 2008 and 2012
Furthermore MetLife admitted that the bank knew a large number of the loans were not eligible for FHA mortgage insurance through its own quality control practices Between 2009 and 2010 the bank discovered that anywhere from 25 to 60 percent of these loans were seriously deficient mdash findings that were regularly shared with the bankrsquos CEO and its directors the Justice Department said
Over a two-year period the bank self-identified 1097 mortgages insured by the FHA that were seriously deficient but only reported 321 of them to the Department of Housing and Urban Development As a result FHA insured hundreds of home loans that werenrsquot eligible mdash causing the agency to suffer serious losses when it later paid insurance claims on the loans
ldquoMetLife Bankrsquos improper FHA lending practices not only wasted taxpayer funds but also inflicted harm on homeowners and the housing market that lasts to this dayrdquo said Acting Assistant Attorney General Joyce R Branda of the Justice Departmentrsquos Civil Division ldquoAs this settlement shows we will continue to hold accountable financial institutions that elected to ignore the rules and to pursue their own financial interests at the expense of hardworking Americansrdquo
SOURCE Justice Department
LEGAL BRIEFS
11
MARCH 2015
Housing Rising Student Loan DebtGrowing student loan debt is weighing down on an already tepid housing market according to fresh data from the New York Federal Reserve Rising student loan debt is shutting out potential buyers A new report from the Federal Reserve shows that student loan debt rose in the fourth quarter of 2014 to a record $116 trillion dollars Thatrsquos 7 percent higher than the year before And delinquencies are rising too with current default rates at more than 11 percent Historically first-time home buyers are people in their 20s and 30s but this same age group is carrying a majority of that $116 trillion in loan debt According to the Fed the rising student loan debt is decreasing both household formation and home ownership Labor market growth and higher wages will help shrink student loan debt according to economists
Rents New York Rents Too HighNew Yorkers are now spending approximtely 60 percent of their income to live in Manhattan according to a new study by the website Streeteasy The median monthly New York rent hit $2700 mdash or more than 58 percent of residentsrsquo median income Residents in Brooklyn pay the highest median rent cost mdash 60 percent Surprisingly Manhattanites arenrsquot the worst off Residents in Brooklyn pay the highest median rent cost mdash 60 percent They are followed by those living in the Bronx at 52 percent Manhattan at 49 percent Queens at 41 percent and Staten Island at 30 percent
Trends Millennials Lead All BuyersThe millennial generation represented the largest share of recent home buyers according to a new report from the National Association of Realtors The 2015 National Association of Realtors ldquoHome Buyer and Seller Generational Trends Reportrdquo found that an overwhelming majority of buyers search for homes online and then purchase their home through a real estate agent with millennials also known as Gen Y using agents the most With millennials entering the peak buying period and expected to soon surpass boomers in total population the NAR believes the share of millennial purchases would be higher if not for the numerous obstacles that have slowed their journey to homeownership
Study Consumer Confidence Grows Consumer optimism toward the economy is growing and appears to be contributing to further improvement in overall housing sentiment according to Fannie Maersquos National Housing Survey Most consumers expect home rental prices to continue to rise in the next year but 43 percent still think it is too difficult to get a mortgage the survey found The share of respondents who believe the economy is headed in the right direction increased 3 percentage points in February to an all-time survey high of 47 percent while the those who believe it is headed in the wrong direction decreased to 45 percent a new survey low ldquoWe continue to see strength in attitudes about the current home buying and selling environment and consistently high shares of consumers saying they expect to buy a home on their next moverdquo said Doug Duncan senior vice president and chief economist at Fannie Mae
Tech Smart Homes Sell Faster As smart home technology plays a larger role in real estate Coldwell Banker Real Estate LLC recently released a survey uncovering what smart features home buyers are looking for when purchasing a home and how those features impact a home sale Coldwell Banker also published a list of 25 smart home products and systems in the categories that matter most to buyers A survey of 500 Coldwell sales associates found that 62 percent of buyers want to control their home from their smart phone or tablet One third (33 percent) said that homes with smart home technology sell faster than homes without them Gen X (age 35-49) is the ldquosmartestrdquo generation of home buyers interested in smart home technology today the survey found
Study Remodeling RecoveryThe $300 billion US home improvement industry is faring much better than the broader housing market according to a new report from the Joint Center for Housing Studies of Harvard University ldquoEmerging Trends in the Remodeling Marketrdquo is the latest in the Improving Americarsquos Housing series published by the Joint Center While new home construction is many years away from full recovery the Center reports that Americarsquos home improvement industry could post record-level spending in 2015 with kitchen and bath upgrades leading the way
FINANCIAL BRIEFS
12
MARCH 2015
By Octavio Nuiry Managing Editor
North Carolina Teeing Up Real Estate in the Tar Heel State
In the game of golf an eagle mdash two strokes under par mdash is good news
In the real estate game buying a home located on a golf course is like sinking a housing eagle Not only do you waking up every morning to the possibility of golfing every day but many golf communities are attractive to buyers because of their safety beauty and quality of life
In 2013 Americans bought 717000 vacation homes up 30 percent from a year earlier and proximity to a golf course was a decisive factor for a third of the buyers according to the National Association of Realtorsrsquo 2014 Investment and Vacation Buyers Survey The median price of a vacation home in 2013 was $168700 up 125 percent from 2012
In the Tar Heel State golf and real estate are frequently tied together In North Carolina the vast geographical diversity provides golf home buyers with a wide choice of locations whether coastal inland or mountain From the shores of the Outer Banks to the rolling hills of the Black Mountains golf courses pepper the statersquos landscape Nearly 50 years after Hilton Head Island SC ushered in the first master-planned golf home community North Carolina is slowly recovering from the housing downturn
According to David Lott publisher and founder of Golfcoursehomenet golf communities were hit hard during the recent housing downturn Lott said since the recession the number of courses closing has outnumbered the courses opening He said North Carolina golf communities are slowly rebounding Golf communities in the remote western mountains
Continued Next Page
STATE SPOTLIGHT
Where Most of the Properties Come With a Club Membership AttachedTHREE FOR SALE
Resort community living at its finest in this beautiful all brick three bedroom home on a private wooded lot with wa-ter views and transferable Pinehurst Country Club membership (the buyer pays half initiation fee to join) Agent Sue Boynton Pinehurst Resort Realty (704) 564-8139 wwwpinehurstresort-realtycom
Built in 2006 this brick home on the 18th fairway of the Beacon Ridge golf course has four bedrooms and three baths Club membership attached Agent Dawn Crawley Pinehurst Resort Realty (910) 783-7993 wwwpinehurstresortre-altycom
Located on Pinehurst No 2 golf course this home has four bedrooms and five baths and is walking distance to the His-toric Village of Pinehurst The home is located in Pinehurstrsquos prestigious gated community Fairwoods 7 Agent Marga-ret Chirichingo Pinehurst Resort Realty (704) 564-8139 wwwpinehurstresortre-altycom
WHAT 3-bedroom homeHOW MUCH $225000
WHAT 4-bedroom houseHOW MUCH $399000
WHAT 4-bedroom homeHOW MUCH $1499000
13
MARCH 2015
of North Carolina were hit hardest Lott said
ldquoThe recovery started on the shores of the Atlantic and is slowly working its way inlandrdquo said Lott a former reporter for Golf Digest referring to the westward movement of North Carolinarsquos golf real estate recovery ldquoThe pace of the recovery is going to be different in the various geographical areas The mountain areas are still having the most troublerdquo
During the recent real estate boom developers and home buyers believed residential golf communities were a sure-fire bet Many buyers purchased properties to flip for a quick profit Others were lured for the country club amenities stunning views and security of the gated communities While there are no reliable data on the growth of master-planned golf communities real estate brokers and market analysts say the market is slowly recovering
Clearly the recession of 2008 sliced the growth of golf communities into the rough According to the National Golf Foundation only 14 new courses opened in the United States in 2014 the fewest in 25 years while almost 160 of the countryrsquos 14600 18-hole golf facilities shut down Last year marked the eight straight year that more courses closed than opened
Pinehurst Central North Carolina At Pinehurst (No 2) the luxurious golferrsquos resort in the arid sand hills of south-central North Carolina housing prices remain comparatively reasonable considering that most of the property in Pinehurst comes with a membership to Pinehurst Country Club Pinehurst and its surrounding communities mdash known locally as ldquothe Sandhillsrdquo mdash is located in Moore County Pinehurst is transiting from a playground for retirees into a younger family-friendly resort according to Sue Boynton an associate broker with Pinehurst Resort Realty in Pinehurst NC
ldquoA lot of the buyers here in Pinehurst are from the northeastrdquo said Boynton an avid golfer who lives in the Doral Woods golf community in Pinehurst ldquoBut there are a lot from Charlotte toordquo
As one of the countryrsquos first golf resorts Pinehurst is viewed as the cradle of the sport Pinehurst which ranks 16th on Golf Magazinersquos list of Top 100 Courses in the World is located 60 miles southwest of Raleigh No golf community in America is as rich in golf history as Pinehurst which is home to 42 golf courses many of them world renowned Last year for example the 120-year old Pinehurst resort hosted two of golfrsquos greatest stateside productions mdash the US Menrsquos Open and the Womenrsquos Open Golfers Vickie and David Bowles who purchased a historic home on the tee box of hole 5 on Pinehurst (No 2) in 2013 said they enjoy the layback atmosphere of the Pinehurst Village ldquoOne thing I love about Pinehurst is that I get to spend time with my husbandrdquo said Vickie Bowles referring to time together on the links with her husband David ldquoI had to learn golf and he had to
learn how to snow ski The weather is exceptional and the wersquore close to the mountains and the beaches of North Carolinardquo Built in 1895 on 5500 acres of the Sandhills region of North Carolina the Village of Pinehurst was originally developed as a health resort for patients recovering from tuberculosis As the popularity of North Carolina has surged so have real estate prices Home sites of $600000 are common And homes priced above $5 million donrsquot turn heads Boynton said She said most of the Pinehurst properties come with a membership to the Pinehurst Country Club Property ownership is the only requirement for membership said Bowles
ldquoPinehurst Resort is uniquerdquo said Boynton ldquoIf somebody loves golf Pinehurst is the place to be Itrsquos becoming a neighborhood-friendly community It is
Continued Next Page
David LottFounderPublisher
GolfCourseHomecom Vineyard Haven Mass
The recovery started on the shores of the Atlantic and is slowly
working its way inland The pace of the recovery is going to be different in the various geographical areas The
mountain areas are still having the most
trouble
14
MARCH 2015
increasingly transitioning to younger familiesrdquo
To become a member of the Pinehurst Country Club you have to own property in Pinehurst said Boynton Pinehurst home buyers are required to pay a $12500 transfer fee which is often included in the purchase price and $381 in monthly dues
ldquoPeople are still buyingrdquo said Boynton citing that people from all over the world come to Pinehurst and nearby Southern Pines to play golf and ride horses The area is rural with horse properties and farms Increasingly she said non-golfers are buying in golf communities
According to a survey conducted by Better Homes and Gardens Real Estate 57 percent of baby boomers say they plan to move to a new home in retirement When asked which type of community they were likely to choose 39 percent said a small town like Pinehurst or a rural community The next choice was a 55-and-older community (27 percent) followed by urban living (26 percent) and 25 percent said they would buy a second home such as a vacation beach house or a golf course community
Golf went mainstream in America in the 1890s according to Richard J Moss author of ldquoThe Kingdom of Golf in Americardquo a rich and colorful history of the sport Its popularity and its fortune has waxed and waned in response to larger economic events As America prospered in the 20th century public courses opened alongside private clubs and exposed more people to the sport Between 1992 and 2001
at least 60 percent of new golf courses were tied to property developments writes Moss Golf courses increase the value of surrounding homes and developers built long complicated courses with the hope of attracting tournaments and selling more homes
Moss points out that golf and real estate deals have always been connected Nationwide approximately 60 percent of golf courses are linked to real estate development claims Moss Courses came to be designed with premium-priced houses bordering fairways similar to houses bordering beaches
Moss believes that neither the recession nor the eclipse of its brightest star can stymie professional golf Today according to Moss there are roughly 16000 golf courses in America half or more of the golf courses in the world Average prize money for a PGA Tour event doubled between 2000 and 2010 from $33 million to $6 million reports
Continued Next Page
If somebody loves golf Pinehurst is the place to be Itrsquos becoming a
neighborhood-friendly community It is
increasingly transitioning to younger families
Sue BoyntonAssociate Broker
Pinehurst Resort Realty Pinehurst NC
Pinehurst Resort amp Country Club - No 4 Pinehurst NC
15
MARCH 2015
the Economist In 2014 professional golfers were some of the highest paid athletes in America Phil Mickelson the amiable left-hander ranked 6th nationwide making $37 million according to Fortune Magazine Tiger Woods despite his back problems and not winning a major tournament since 2008 ranked 7th pulling in $35 million
According to the latest list of Golf Digestrsquos top 100 public and private golf courses in the US five North Carolina courses make the cut Leading the list is Tom Fazio-designed Wade Hampton Gold Club in Cashiers NC Pinehurst No 2 was the next highest course ranked on the list coming in at 28 on the list Rounding out the top five are all Fazio designs including Mountain Golf and Lake Club in Cashiers (No 78) Eagle Point Golf Club in Wilmington (No 89) and Diamond Creek Golf Club in Banner Elk (No 94)
Western North Carolina In the mile-high mountains of western North Carolina some of the best golf real estate is found atop the famed Blue Ridge Mountains the tallest peaks of the eastern United States
ldquoOur area is considered the worldrsquos premier mountain golf mecca with two of the top three mountain golf clubs in the world Wade Hampton Golf Club and Mountaintop Golf and Lake Clubrdquo said Bill Kruckenberger brokerowner of Sapphire Valley Real Estate in Sapphire NC ldquoBoth are Fazio courses also considered to be in the top 100 courses worldwide There are a ton of high-end mountain golf courses on our very small mountain plateau (including Bobby Jones summer club Highlands Country Clubrdquo
Kruckenberger knows a thing or two about golf Although hersquos not a golfer he sold the arearsquos public golf course Sapphire National Golf Club not once mdashbut twice
Continued Next Page
Bill KruckenbergerBrokerOwner
Sapphire Valley Real Estate
Sapphire NC
Our area is considered the worldrsquos premier mountain golf mecca with two of the
top three mountain golf clubs in the world
Perched 4400 feet atop the Blue Ridge Mountains buyers can enjoy big moun-tain views from this three bedroom and 3 bath Sapphire Valley Resort home Membership in the Sapphire National Golf Club is included Agent Bill Kruck-enberger Sapphire Valley Real Estate (828) 506-8398 httpwwwsapphirev-alleypropertiescom
WHAT 3-bedroom homeHOW MUCH $585000
This custom golf community home has five bedrooms and three baths Located minutes from Asheville this home is a golfers dream Agent Jeff Stewart Keller Williams Professionals (828) 337-8837 httpwwwbrokerjeffnet
WHAT 5-bedroom houseHOW MUCH $484900
Located on Wade Hamptonrsquos 8 fairway this two-story home has five bedrooms and seven baths and is walking dis-tance to the clubhouse This golf-front mountain home is located in township of Cashiers NC in a prestigious gated community Agent Bill Kruckenberger Sapphire Valley Real Estate (828) 506-8398 httpwwwsapphirevalleyproper-tiescom
WHAT 5-bedroom homeHOW MUCH $2975000
THREE FOR SALE Western North Carolina Golf Homes
16
MARCH 2015Nestled 4000 feet in the Great Smoky Mountains the golfing community of Wade Hampton is a luxury North Carolina mountain real estate golf community 65 miles southwest of Asheville
Kruckenberger has a healthy business selling to second-home buyers and retirees and renting many of those homes out to vacationers He said home prices at Wade Hampton range from $700000 for a cottage to $5 million At Sapphire National Golf Club a two-
bedroom condominium sells for $150000 and homes can sell as high as $5 million
ldquoOur area is 90 percent second-home buyersrdquo he said ldquoA good number are retirees Most buyers are out of state Florida is the number one source of buyers in our area They come to escape the heat in Florida and enjoy the cool mountain air We have a good number of buyers from South Carolina and Georgia And Texans are coming in drovesrdquo
Coastal North Carolina Increasingly golf communities offer a country club experience with swimming tennis spas fine dining and waterfront homes Maritime golf real estate resorts abound along North Carolinarsquos Atlantic coast In southeastern North Carolina along the statersquos 300-mile Atlantic coast some top-notch golf resorts await buyers who like seaside second home properties according Vance Young a broker with Intracoastal Realty in Wrightsville Beach NC
Young said coastal golf home buyers are seeking other amenities beside golf
Continued Next Page Wade Hampton Golf Club Cashiers NC
17
MARCH 2015ldquoAs far as general trends I do see and emphasis on location good shopping access to medical care and transportationrdquo said Young a top producer who sold 125 homes last year for $81 million in sales ldquoBuyers are becoming more demanding and more selective These additional amenities have become critically important the last few yearsrdquo
At Landfall a 2200 acre gated development with 1600 homes nestled along the coast near Wrightsville Beach and Figure Eight Island just nine miles northeast of Wilmington NC buyers can enjoy golf homes at the Country Club of Landfall which offers 45 holes of championship golf 27 designed by Jack Nicklaus and 18 crafted by Peter Dye said Young
Young said buyers are attracted by Wilmington NC the riverfront community along Cape Fear River which features a Riverwalk with over 200
restaurants and shops
In Landfall a golf course townhomes start at $300000 and go up to $700000 he said Single family homes range from $500000 to $5 million The closer you are to the beach the more expensive the homes become
ldquoMost of the residents of Landfall mdash 85 to 90 percent mdash are primary residentsrdquo said Young the No 1 ranked broker in Hanover County who specialize in waterfront and golf resort communities of Wrightsville Beach Figure Eight Island and Landfall ldquoBut we also have a large contingent of second-home owners who come largely from the east coast especially Virginia DC New York and New Jerseyrdquo
As American golf enters the second century of existence it faces a supply-and-demand dilemma too many courses and not enough players But in North Carolina golf real estate is soaring like an eagle
Coastal North Carolina Golf Homes
Vance YoungBroker
Intracoastal RealtyWrightsville Beach NC
As far as general trends I do see an emphasis on location good shopping access to medical care
and transportation
Overlooking the second tee of the Jack Nicklaus golf course at the Country Club of Landfall this beautiful four bedroom five bath Landfall NC French Country inspired design home has a pool and is move-in ready Agent Vance Young In-tracoastal Realty Corp (910) 232-8850 httpVanceYoungcom
This Landfall brick home has four bed-rooms and four baths wit 10 foot ceil-ings and 8 foot doors throughout This Steve Dunn built home is walking dis-tance to the Country Club of Landfall Agent Vance Young Intracoastal Re-alty Corp (910) 232-8850 httpVanc-eYoungcom
WHAT 4-bedroom homeHOW MUCH $769000
Built in 2006 this brick home overlooks the Jack Nicklaus Pines 4 fairway in Landfall NC It has three bedrooms and four baths The home features granite kitchen stainless appliances and a five burner gas range Agent Alison Bern-hart Landfall Realty LLC (800) 227-8208 httpwwwlandfallrealtycom
WHAT 3-bedroom houseHOW MUCH $689000
WHAT 4-bedroom homeHOW MUCH $1199900
THREE FOR SALE
18
MARCH 2015BOOK REVIEWThe GM Building New Yorkrsquos Most Sought After PropertyBy Octavio Nuiry Managing Editor
The General Motors Building isnrsquot the most iconic building in New York City Nor is it the tallest or most elegant But something about the glemming 50-story white marble tower that real estate tycoons canrsquot resist
In ldquoThe Liarrsquos Ball The Extraordinary Saga of How One Building Broke the Worldrsquos Toughest Tycoonsrdquo (Wiley 2014) Vicky Ward lifts the veil on New York Cityrsquos cutthroat world of high-stakes real estate shining the
spotlight on the half-century fight to own one of Americarsquos most desired pieces of real estate the General Motors Building on 5th Avenue in Manhattan
The book largely tells the tragic rise-and-fall of flamboyant New York real estate developer Harry Macklowe who in 2003 engineered the biggest real estate transaction in US history when he bought the GM Building for an unprecedented $14 billion in borrowed funds
Not only does Ward chronicle Macklowersquos recklessness but the book also is an entertaining behind the scenes glimpse at a cast of high-powered New York City real estate tycoons who lie cheat steal mdash and sue each other mdash to acquire NYC trophy properties
The colorful book which spans 150 years of New York real estate history not only documents the history of the GM Building
but some of its flowery suitors including the corrupt politician William ldquoBossrdquo Tweed Cecila Banatter the ldquohousewife tycoonrdquo too busy to name her baby Max Rayne the English property developer who snapped up the iconic Savoy-Plaza Hotel (site of the future GM Building) Disque D Deane the unlovable rogue financier Rita Jenrette Harry Macklowe and Donald Trump She shows how grown men mdash and some powerful women mdash behave like children when their toys are taken away from them
Built by General Motors for corporate offices and a show room on the southeast corner of Central Park in 1968 the GM Building is not New Yorkrsquos tallest skyscraper or most beautiful but it is
desirable in the real estate world for its location across from the Plaza Hotel But itrsquos an iconic trophy tower mdash the most expensive office tower in America mdash that occupys an entire city block and has brought out the worst in a string of landlords from Bill Zeckendorf to Harry Macklowe writes Ward General Motors Co later sold the building but maintained a sizeable presence as a tenant for years
The bookrsquos title comes from the annual black tie gala that the Real Estate Board of New York throws itself every January at the Hilton Grand Ballroom
ldquoEvery year toward the end of January around 2000 members of the New York real estate industry gather at the Hilton to celebrate hellip an event affectionately known by its attendees as lsquothe
Liarrsquos Ballrdquo writes Ward ldquoItrsquos rough itrsquos vulgar and itrsquos a riveting showrdquo
Ward is a New York-based British-born investigative journalist and former contributing editor at Vanity Fair
In 1998 Donald Trump teamed up with financial services company Conseco to buy the building for $878 million from GM which relocated back to Detroit Trump cleaned up the white marble
The Liarrsquos BallBy Vicky Ward
(Wiley 240 pages $2995)
Continued Next Page
Every year toward the end of January around 2000 members of the New York
real estate industry gather at the Hilton to celebrate hellip an event affectionately known
by its attendees as lsquothe Liarrsquos Ball Itrsquos rough itrsquos vulgar and
itrsquos a riveting show
Vicky Ward Author
ldquoThe Liarrsquos Ballrdquo
19
MARCH 2015
walls put in new granite floors emblazed his name on the front of the building and raised rents By 2001 Trump had a chance to buy the entire building for $995 million but he hesitatedTrumprsquos loss was Macklowersquos gain In 2003 Macklowe bought the GM Building from Trump and Conseco for a then-record price of $14 billion Soon Macklowe convinced Steve Jobs then CEO of Apple to open a subterranean flagship store with a glass cube in front of the GM Building It opened in 2006 and was a retail success Now the Apple Store is one of New Yorkrsquos major retail locations
ldquoFor four year Macklowe was riding high after his unexpected success with the GM Building where his visionary ideas mdash including the creation of the iconic Apple flagship store in the basement mdash created $1 billion in valuerdquo writes Ward
Soon however Macklowersquos luck ran out
Convinced he could pull off an even bigger deal Macklowe put
the building up as collateral for a $72 billion loan but the market turned and Macklowe lost the GM Building He sold the building for $28 billion in 2008
The $28 billion price tag remains the highest price ever paid for a single office building in the US
Today the General Motors Building is owned by Boston Properties (which controls 60 percent of the ownership) Chinese developer Zhang Xin and Brazilrsquos Safra Group (each owning a 20 percent stake) The latest deal values the property at $34 billionBut not everyone is a fan of the book
Donald Trump told the New York Post that ldquothe book doesnrsquot capture the essence the glamour or excitement of what happenedrdquo On Twitter Trump wrote ldquoJust finished reading a poorly written and very boring book on the GM Buildingrdquo calling Ward a ldquothird rate writerrdquo
The General Motors Building
DOWNLOAD REALTYTRACrsquoS FREE 2014 GUIDE TO SHORT SALES
State Rank
State Default Auction REO Total 1every X HU (rate)
Δ from Jan 2015
Δ from Feb 2014
US Total 31753 45880 24305 101938 1295 -429 -939
14 Alabama 0 1370 312 1682 1295 6555 2359
30 Alaska 60 59 24 143 2144 1917 2222
24 Arizona 0 1216 395 1611 1775 -2076 -2603
41 Arkansas 0 220 158 378 3494 -979 -503
13 California 5029 4301 2208 11538 1190 -793 -1161
26 Colorado 0 888 267 1155 1924 -2539 -1012
31 Connecticut 234 146 309 689 2158 -5238 -5834
8 Delaware 202 171 53 426 957 -819 1123
District of Columbia 5 37 2 44 6780 23846 52857
3 Florida 3576 7373 4844 15793 570 -1496 -3469
17 Georgia 0 1881 1014 2895 1414 1135 -2834
39 Hawaii 61 47 87 195 2678 598 773
5 Idaho 523 185 56 764 877 2797 11105
7 Illinois 2676 1649 1515 5840 906 -1917 -1051
4 Indiana 1225 1270 721 3216 871 1798 2289
21 Iowa 453 210 138 801 1674 6182 -3223
22 Kansas 231 347 139 717 1723 2535 5689
34 Kentucky 102 534 209 845 2284 4322 1544
27 Louisiana 272 444 297 1013 1949 846 -3494
37 Maine 127 86 62 275 2625 -3514 -5150
1 Maryland 1650 1520 1061 4231 564 1010 -087
32 Massachusetts 746 373 156 1275 2203 897 5269
16 Michigan 746 2178 1030 3208 1412 1154 484
40 Minnesota 0 470 315 785 2999 -2758 -1771
45 Mississippi 0 180 57 237 5390 -1350 33091
35 Missouri 0 706 352 1058 2565 -3424 -1314
49 Montana 0 26 19 45 10740 -1818 -2857
44 Nebraska 71 64 42 177 4521 -2063 11325
2 Nevada 1079 609 381 2069 569 687 1184
43 New Hampshire 0 93 53 146 4214 -4983 -6507
6 New Jersey 2283 1293 406 3982 895 -833 -1721
29 New Mexico 253 80 91 424 2128 -921 -1452
25 New York 3251 702 524 4477 1812 416 1948
10 North Carolina 2234 1107 657 3998 1088 053 10020
50 North Dakota 0 3 2 5 64942 6667 6667
9 Ohio 1480 2138 1505 5123 1000 -739 -590
33 Oklahoma 151 402 201 754 2215 2715 -157
12 Oregon 451 689 326 1466 1144 3512 7663
15 Pennsylvania 1299 1915 853 4067 1368 1118 860
42 Rhode Island 0 77 52 129 3585 -5770 -5257
11 South Carolina 872 734 293 1899 1129 717 -1364
47 South Dakota 0 22 24 46 7950 5862 222
23 Tennessee 0 1246 366 1612 1750 -1801 7315
28 Texas 3 3585 1185 4773 2110 1175 -033
20 Utah 173 366 96 635 1557 -2616 -2275
48 Vermont 0 22 12 34 9498 2143 12667
38 Virginia 0 965 315 1280 2642 -2228 -008
18 Washington 88 1316 637 2041 1421 -078 287
46 West Virginia 0 17 100 117 7529 12075 10526
19 Wisconsin 893 474 357 1724 1523 622 -3205
36 Wyoming 0 74 27 101 2604 5538 1744
February 2015 State-by-State Foreclosure Activity Summary
Rank Metro
Housing Units Per
Foreclosure Filing (Rate)
1 Tampa FL 495
2 Miami FL 539
3 Baltimore MD 547
4 Riverside CA 630
5 Chicago IL 721
6 Philadelphia PA 903
7 Washington DC 1113
8 Seattle WA 1213
9 Atlanta GA 1284
10 Los Angeles CA 1316
11 San Diego CA 1335
12 Detroit MI 1356
13 New York NY 1411
14 St Louis MO 1483
15 Phoenix AZ 1733
16 Dallas TX 1799
17 Minneapolis MN 2000
18 Houston TX 2155
19 San Francisco CA 2182
20 Boston MA 2763
TOP 20 Foreclosure rates in the
Nationrsquos 20 largest metros in February 2015
Housing News Report is a monthly publication dedicated to helping investors succeed by providing them with timely and relevant information about the housing market
EXECUTIVE EDITORDaren Blomquist
MANAGING EDITOROctavio Nuiry
WRITERSDaren Blomquist Octavio Nuiry Peter Miller
ART DIRECTIONEunice Seo
CONTACT USPhone 8003069886
LETTERS TO THE EDITORE-mail editorforeclosurenewsreportcomMail Housing News Report 1 Venture Plaza Suite 300 Irvine CA 92691
5
MARCH 2015
recasting at fully amortizing payments homeowners know they need to act ldquoTheyrsquore at the end of their journey I think yoursquoll see a rush for the doorrdquo
Insult Added to Injury Frozen HELOCsKohn noted that for many HELOC borrowers the higher payments are coming on a credit line they havenrsquot been able to tap for several years because their bank froze the credit line when the financial crisis hit in 2008
ldquoItrsquos almost adding insult to injury because not only are they rolling over but these are people who have had their loans frozen for over five years nowrdquo he said ldquoThese lines are not something that people have been actively using for the last four or five years because they couldnrsquotrdquo
Kramer noted that homeowners in her market are often getting out ahead of the HELOC payment adjustment by more than a year
ldquoMost of them have been underwater for some time and now they have
equity in their homes again and what wersquore finding is that theyrsquore coming to us because they have maybe one year maybe they have 16 months until that loan starts to fully amortizerdquo she said ldquoSo theyrsquore trying to take advantage of the opportunity when they have it with the lower rates and convert these into a new 30-year fixed rate loanrdquo
The Cash-Out ChallengeWhile having equity helps itrsquos not always a panacea for the pain of a resetting
HELOC according to Kramer and Kohn
ldquoOne of the challenges that we see with that in todayrsquos marketplace is that Fannie Mae and Freddie Mac will consider those loans as a cash-out transactionrdquo Kramer said ldquoSo it makes it a little tougher You have to have more equity in the property and you have to have better scores or you get significant hit to the pricing on that new 30-year loanrdquo
ldquoThe pricing is absolutely horrid for a high balance cash-out refinance The premiums you pay are dauntingrdquo Kohn
Kathleen KramerSenior Loan Officer
JMJ FinancialOrange County Calif
So theyrsquore going to go from an interest-only payment to a 20 year fully amortized payment and that will be very painful for a lot of these homeowners
Continued Next Page
6
MARCH 2015said noting one solution hersquos found that works well for some of his clients with high-balance loans is to refinance them into jumbo loans ldquoOftentimes even the jumbo product has a better rate and with the jumbo product it goes by the old Fannie Mae rules (that donrsquot consider the transaction a cash-out refinance)rdquo
Of course the jumbo loan solution comes with its own challenges in the form of tighter debt-to-income limits and more documentation required according to Kohn
The Negative Equity ChallengeThe challenges are exponentially greater for homeowners without equity
ldquoWith equity we are seeing people cash out while they can but without we are seeing folks continue to try loan modifications stripping their seconds in BK (bankruptcy) short selling or unfortunately being foreclosed upon in many instancesrdquo said Brian Alper assistant vice president at Pacific Coast Title Company in Orange California
ldquoAt the 10-year mark yoursquore going to start seeing this become a big problemrdquo said Pam Marron a loan originator in Florida who started the website Housing Crisis Stories to address the continued problems many homeowners are still facing as a result of the housing crisis ldquoIf people are underwater they can do the HARP on the first but there is no relief for the HELOC unless they go delinquentrdquo
Marron was referring to the federal governmentrsquos Home Affordable Refinance Program designed to provide refinancing to underwater homeowners But the program is only applicable for mortgages backed by Fannie Mae and Freddie Mac and most HELOCs are not backed by the two government sponsered enterprises
No Hardship No HelpMarron said the only way many banks will provide relief to underwater homeowners with a recasting HELCO is if the homeowners are delinquent on their monthly payments evidence to the bank that the homeowner is truly experiencing a hardship
ldquoI canrsquot believe the banks are saying we canrsquot help you unless you go delinquentrdquo said Marron ldquoNo wersquore not
having a hardship but when this loan resets we are going to have a hardship Do you want to deal with it now or do you want to deal with it laterrdquo
According to the RealtyTrac analysis Florida mdash where Marron is based mdash has the second highest number of bubble-era HELOCs recasting over the next five years at 365739 and the third highest percentage of those recasting HELOCs that are underwater at 71 percent among all the states
Marron offered up two solutions for underwater homeowners with a recasting HELOC that would work better than the current practice of no hardship no help
First she recommends refinancing the HELOC at a lower interest rate and shorter term and make it fully amortizing right away
ldquo(The) borrower continues to make the same maybe a little bit higher payment and pay it down that much faster hellip Yoursquore definitely going to gain equity back that much quickerrdquo
This benefits the bank too according to Marron
ldquoDo the right thing and yoursquore still going to make moneyrdquo she said ldquoYoursquore not forgiving any part of the loan Yoursquore simply giving the consumer a vehicle to pay back the loan faster and yoursquore getting paid back soonerrdquo
Marronrsquos second solution is simply a short sale although those can be tougher to negotiate when a second mortgage is involved
ldquoIf we are not going to help these people who are staying in their homes and trying to do the right thing If they are getting hit with these resets on the seconds and they are already struggling with the first hellip and finally giving up hellip the best solution is a short salerdquo she said
ldquoIrsquom having a huge number of these folks resetting and not knowing what to dordquo Marron continued ldquoMy fear is that there is a wave of trouble coming if we donrsquot look at it nowrdquo
The conversation doesnrsquot become is your rate going up itrsquos how much is it going up Theyrsquore at the end of their journey I think yoursquoll see a rush for the door
Ted KohnSenior Mortgage Planner
RPM Mortgage IncManhattan Beach Calif
7
MARCH 2015
MY TAKE By Leonard Kiefer Deputy Chief Economist Freddie Mac
The spring home buying season is underway Between now and the end of June wersquoll see about 40 percent of all home sales for the year So these next few months will essentially tell us whether or not 2015 will be a good or bad year for housing markets
Overall wersquore feeling good about housing In fact we expect the best year for home sales and new home construction since 2007
Here are the top three reasons to be optimistic about housing markets in 2015
High AffordabilityAbout 80 percent of metro markets in the US are affordable based on data through the 4th quarter of 2014 on the three primary drivers of affordability house prices interest rates and income
Letrsquos look at the house price part of the equation first House prices continue to rise across the country but are still about 10 percent below their 2006 peak nationally But peak-to-trough comparison can be misleading as many markets experienced unsustainable highs during the last decade Instead when we look at fundamental drivers like payment-to-income and price-to-rent ratios we see that most markets have home values that are sustainable Of the top 50 metros we track in our Multi-Indicator Market Indexreg (MiMi) only Los Angeles has house prices that are elevated given household incomes and mortgage rates Prices remain attractive in most markets
Prices are especially attractive given that mortgage rates remain low the second affordability driver From January 2014 to January of 2015 mortgage rates fell nearly three-fourths of a percentage point Though rates have rebounded from their lows at the end of January rates are significantly below the level from one
year ago Low interest rates do a lot to help support homebuyer affordability But it is the third component mdash household incomendash that will be the key driver of housing markets Incomes have largely stagnated over the past decade barely rising and after adjusting for inflation actually falling for the median household But there have been glimmers of good news in the most recent jobs report which showed income up 22 percent year-over-year With a pickup in economic growth in the second half of 2014 households may be beginning to see a gradual pickup in wages Moreover improved job prospects have started to drive those in prime working ages 24 to 54 back to the labor force But this will require patience Not only were younger cohorts the hardest hit during the downturn there are also the ones struggling the most to get back on their feet Rising wages and salaries will do much to help propel housing markets forward but the full effects will take time
Spring Home Buying Kicks Off Best Year for Homes Sales in Seven Years
Continued Next Page
SOURCE Freddie Mac
8
MARCH 2015Rising RentsNot only is affordability high but rents have been rising rapidly across the country driven by strong demand nationwide Rents increased an average of 36 percent in 2014 and nearly 11 percent over the last three years With demand rising rapidly given the improved job prospects for younger households and vacancy rates at low levels we expect to see rents rise at or above inflation this year as well This may be the tipping point Many current renters may decide to strike while the iron is hot (mortgage rates are low and home prices not too high) and purchase a home this year
In fact study findings support that many feel it could make financial sense to buy today According to an online survey of over 2000 US adult renters commissioned by Freddie Mac and conducted by Harris Poll in November 2014 of those renters who said that they would ever consider buying a home 39 percent already think buying a home is a better financial option than renting
Expanded Credit AvailabilityBut will financing be available for these prospective homebuyers We believe it will be given the wider credit availability in the market today Even for those renter households hit by rising rents who have been unable to save much for a down payment but have good credit and a good-paying job
Broader access to credit will be driven by a confluence of factors including new products First more certainty for lenders through the enhanced representation and warranty framework will help ease credit overlays and facilitate more lending Second reduced premiums by the Federal Housing Administration will help many prospective first-time homebuyers enter the market with a federally insured loan Finally new 3 percent down mortgage products should help those qualified borrowers who have limited down payment savings buy homes with conventional financing These new products will be especially important for prospective first-time homebuyers that have been sitting on the sidelines According to the National Association of Realtors (NAR) Annual Survey of Home Buyers and Sellers the share of first-time buyers in the market fell to its lowest point in nearly three decades in 2014 mainly because rising rents and repaying student loan debt is making it more difficult to save for a down payment especially for younger adults
Unlike Punxsutawany Phil who predicted six more weeks of winter wersquore much more optimistic about the spring home buying season and home sales overall in 2015 We expect that a rapidly improving labor market income growth and only a gradual increase in mortgage rates will support the best year for home sales and new home construction since 2007 with home sales increasing nearly 4 percent from last year and new home construction up nearly 20 percent
Sources Freddie Mac House Price Index Reis Inc Freddie Mac February Outlook
Leonard Kiefer was appointed to the position of Deputy Chief Economist in December 2012 As the Deputy Chief Economist Kiefer is responsible for primary and secondary mortgage market analysis and research macroeconomic analysis and forecasting Kiefer is also involved in the analysis of policy issues affecting the housing industry
Kiefer joined Freddie Mac in 2009 as a Senior Economist He was previously an assistant professor at Texas Tech University in Lubbock Texas where he conducted research on macroeconomics and monetary policy He has also taught economics at The Ohio State University and finance at George Mason University
Kiefer holds a BA in economics from the University of Kentucky and a PhD from The Ohio State University
84
76
58
46 47 45 46
50
55 54 56
58
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Total Home Sales (Millions) Source NAR CensusHUD Freddie Mac
Forecast
SOURCE Freddie Mac
9
MARCH 2015
Realtor Sentenced to 3 Years in PrisonA Seal Beach Calif real estate agent was sentenced to 3 years in federal prison for operating a $14 million fraud scheme in California that bilked investors who paid money in response to false promises of ownership in commercial real estate according to the US Attorney
Karen Hanover 48 was sentenced by United States District Judge Josephine Staton Judge Staton scheduled a May 8 hearing to determine how much restitution should be paid to approximately 45 victims
Hanover pleaded guilty last year to one count of mail fraud related to the scheme she ran out of two Long Beach companies mdash Commercial Investment Education LLC and Kharmic Life Strategies Inc ldquoFast Trackrdquo investment program to investors who attended seminars in Southern California Dallas and Las Vegas
Victims were induced to invest between $19000 and $29000 in the real estate scam In her pitches Hanover ldquofalsely represented to the lsquoFast Trackersrsquo that she would partner with them in real estate deals they would receive 100 percent returns on their investments and she would provide a 100 percent refund if they did not obtain a commercial property within a yearrdquo according to court documents that noted these promises were false
SOURCE US Attorney
Brokerage Realogy Launches Search PortalMove Inc which is owned by News Corp and operates the NRT the nationrsquos largest residential real estate brokerage has launched a new home search portal mdash HomesForSalecom mdash a national property portal to compete with Zillow Trulia and Move
NRT is the subsidiary of Realogy that operates real estate brokerages under Realogyrsquos Coldwell Banker Coldwell Banker Commercial Sothebyrsquos International Realty and Zip Realty brands It also owns regional brands The Corcoran Group and Citi Habitats NRT has over 42000 agents and operates over 700 offices in the US
SOURCE News Corp
Vanilla Ice Arrested for Alleged BurglaryRapper-turned rehabber Vanilla Ice was arrested Feb 18 2015 for an alleged home burglary in Lantana Fla
The former rapper whose real name is Robert Van Winkle was arrested in Lantana Fla accused of stealing furniture from a neighborrsquos home
According to Lantana police furniture a swimming pool heater and bicycles were found at Van Winklersquos property and later returned to the owner He is currently renovating a home adjacent to the property in which the items were stolen police said
Van Winkle has a home renovation show on the DIY Network ldquoThe Vanilla Ice Projectrdquo where he and a crew refurbish foreclosed or distressed homes around Palm Beach County
SOURCE Sun-Sentinel
Realtor Safety Survey The recent death of a South Florida home shopper gunned down while looking at a home in Fort Lauderdale on February 27 has the real estate industry talking about safety
Despite several tragedies in the residential real estate world over the last few years a new survey from the National Association of Realtors found that 96 percent of Realtors have never been a victim of crime But 40 percent of Realtors have found themselves in situations where they fear for their safety the survey found
The survey found that one-third of the 3000 Realtors surveyed said they carry a self-defense weapon Female Realtors are more likely to carry pepper spray while male Realtors more commonly carry a firearm Many agents 38 percent have participated in self-defense classes and 13 percent use a smart phone safety application to track their whereabouts or alert colleagues of an emergency
SOURCES National Association of Realtors Sun-Sentinel
NEWS BRIEFS
10
MARCH 2015
Trulia Will Lose Listing Data in April The online battle between Move Inc and Zillow Group flared up again
Listing syndicator ListHub will stop supplying listings on April 7 giving the nationrsquos second largest real estate listing site less than a month to find an alternative source for more than a quarter of its listings
On Feb 23 a San Francisco judge granted Trulia Inc a temporary restraining order to keep receiving listings data from ListHub
ListHub mdash which is owned by realtorcom and operated by Move Inc a News Corp subsidiary mdash announced Feb 20 that it had terminated its syndication agreement with Trulia in the wake of its acquisition by Zillow and would stop sending listings to Trulia on Feb 26
According to a copy of Truliarsquos complaint obtained by Inman News Trulia which could lose 25 percent of its listings data filed a 52-page complaint against Move Inc in San Francisco Superior Court claiming breach of contract Judge Ernest H Goldsmith scheduled a March 12 court hearing to determine whether or not to compel Move to abide by the original June 19 2016 termination date of its agreement with Trulia
Both Zillow and Trulia will lose listing information from ListHub when the contract between those two entities expires
SOURCES Inman News Courthouse News
W Va Supreme Court Rules in Favor of MERS On February 5 the Supreme Court of Appeals of West Virginia held that the recording of trust deeds do not have to be recorded at the office of the clerk of the county commission
In State of W Va v Waren McGraw the Court disagreed with Wyoming Countyrsquos claims that the recording of trust deed assignments in county record books is required by state law ldquoin order to clear title to properties in the Countiesrdquo While the Counties did not name MERSCORP Holdings Inc or Mortgage Electronic Registrations Systems Inc (MERS) as a defendant in the case the allegations in the complaint were focused on challenging the operations of MERS and the MERSreg System
In his opinion West Virginia Supreme Court of Appeals Justice Menis E Ketchum II said that ldquorecording statutes in West Virginia do not require that the assignment of a trust deed be recorded in the office of the clerk of the county commissionrdquo
SOURCE W Va v Warren McGraw
MetLife Fined $123M for Bad LoansMetLife will cough up $1235 million to settle claims that it knowingly approved federally insured home loans for people who didnrsquot qualify according to the US Justice Department
As part of the settlement MetLife Home Loans admitted that its predecessor mdash MetLife Bank mdash repeatedly certified for Federal Housing Administration insurance on mortgage loans that didnrsquot meet federal underwriting requirements between 2008 and 2012
Furthermore MetLife admitted that the bank knew a large number of the loans were not eligible for FHA mortgage insurance through its own quality control practices Between 2009 and 2010 the bank discovered that anywhere from 25 to 60 percent of these loans were seriously deficient mdash findings that were regularly shared with the bankrsquos CEO and its directors the Justice Department said
Over a two-year period the bank self-identified 1097 mortgages insured by the FHA that were seriously deficient but only reported 321 of them to the Department of Housing and Urban Development As a result FHA insured hundreds of home loans that werenrsquot eligible mdash causing the agency to suffer serious losses when it later paid insurance claims on the loans
ldquoMetLife Bankrsquos improper FHA lending practices not only wasted taxpayer funds but also inflicted harm on homeowners and the housing market that lasts to this dayrdquo said Acting Assistant Attorney General Joyce R Branda of the Justice Departmentrsquos Civil Division ldquoAs this settlement shows we will continue to hold accountable financial institutions that elected to ignore the rules and to pursue their own financial interests at the expense of hardworking Americansrdquo
SOURCE Justice Department
LEGAL BRIEFS
11
MARCH 2015
Housing Rising Student Loan DebtGrowing student loan debt is weighing down on an already tepid housing market according to fresh data from the New York Federal Reserve Rising student loan debt is shutting out potential buyers A new report from the Federal Reserve shows that student loan debt rose in the fourth quarter of 2014 to a record $116 trillion dollars Thatrsquos 7 percent higher than the year before And delinquencies are rising too with current default rates at more than 11 percent Historically first-time home buyers are people in their 20s and 30s but this same age group is carrying a majority of that $116 trillion in loan debt According to the Fed the rising student loan debt is decreasing both household formation and home ownership Labor market growth and higher wages will help shrink student loan debt according to economists
Rents New York Rents Too HighNew Yorkers are now spending approximtely 60 percent of their income to live in Manhattan according to a new study by the website Streeteasy The median monthly New York rent hit $2700 mdash or more than 58 percent of residentsrsquo median income Residents in Brooklyn pay the highest median rent cost mdash 60 percent Surprisingly Manhattanites arenrsquot the worst off Residents in Brooklyn pay the highest median rent cost mdash 60 percent They are followed by those living in the Bronx at 52 percent Manhattan at 49 percent Queens at 41 percent and Staten Island at 30 percent
Trends Millennials Lead All BuyersThe millennial generation represented the largest share of recent home buyers according to a new report from the National Association of Realtors The 2015 National Association of Realtors ldquoHome Buyer and Seller Generational Trends Reportrdquo found that an overwhelming majority of buyers search for homes online and then purchase their home through a real estate agent with millennials also known as Gen Y using agents the most With millennials entering the peak buying period and expected to soon surpass boomers in total population the NAR believes the share of millennial purchases would be higher if not for the numerous obstacles that have slowed their journey to homeownership
Study Consumer Confidence Grows Consumer optimism toward the economy is growing and appears to be contributing to further improvement in overall housing sentiment according to Fannie Maersquos National Housing Survey Most consumers expect home rental prices to continue to rise in the next year but 43 percent still think it is too difficult to get a mortgage the survey found The share of respondents who believe the economy is headed in the right direction increased 3 percentage points in February to an all-time survey high of 47 percent while the those who believe it is headed in the wrong direction decreased to 45 percent a new survey low ldquoWe continue to see strength in attitudes about the current home buying and selling environment and consistently high shares of consumers saying they expect to buy a home on their next moverdquo said Doug Duncan senior vice president and chief economist at Fannie Mae
Tech Smart Homes Sell Faster As smart home technology plays a larger role in real estate Coldwell Banker Real Estate LLC recently released a survey uncovering what smart features home buyers are looking for when purchasing a home and how those features impact a home sale Coldwell Banker also published a list of 25 smart home products and systems in the categories that matter most to buyers A survey of 500 Coldwell sales associates found that 62 percent of buyers want to control their home from their smart phone or tablet One third (33 percent) said that homes with smart home technology sell faster than homes without them Gen X (age 35-49) is the ldquosmartestrdquo generation of home buyers interested in smart home technology today the survey found
Study Remodeling RecoveryThe $300 billion US home improvement industry is faring much better than the broader housing market according to a new report from the Joint Center for Housing Studies of Harvard University ldquoEmerging Trends in the Remodeling Marketrdquo is the latest in the Improving Americarsquos Housing series published by the Joint Center While new home construction is many years away from full recovery the Center reports that Americarsquos home improvement industry could post record-level spending in 2015 with kitchen and bath upgrades leading the way
FINANCIAL BRIEFS
12
MARCH 2015
By Octavio Nuiry Managing Editor
North Carolina Teeing Up Real Estate in the Tar Heel State
In the game of golf an eagle mdash two strokes under par mdash is good news
In the real estate game buying a home located on a golf course is like sinking a housing eagle Not only do you waking up every morning to the possibility of golfing every day but many golf communities are attractive to buyers because of their safety beauty and quality of life
In 2013 Americans bought 717000 vacation homes up 30 percent from a year earlier and proximity to a golf course was a decisive factor for a third of the buyers according to the National Association of Realtorsrsquo 2014 Investment and Vacation Buyers Survey The median price of a vacation home in 2013 was $168700 up 125 percent from 2012
In the Tar Heel State golf and real estate are frequently tied together In North Carolina the vast geographical diversity provides golf home buyers with a wide choice of locations whether coastal inland or mountain From the shores of the Outer Banks to the rolling hills of the Black Mountains golf courses pepper the statersquos landscape Nearly 50 years after Hilton Head Island SC ushered in the first master-planned golf home community North Carolina is slowly recovering from the housing downturn
According to David Lott publisher and founder of Golfcoursehomenet golf communities were hit hard during the recent housing downturn Lott said since the recession the number of courses closing has outnumbered the courses opening He said North Carolina golf communities are slowly rebounding Golf communities in the remote western mountains
Continued Next Page
STATE SPOTLIGHT
Where Most of the Properties Come With a Club Membership AttachedTHREE FOR SALE
Resort community living at its finest in this beautiful all brick three bedroom home on a private wooded lot with wa-ter views and transferable Pinehurst Country Club membership (the buyer pays half initiation fee to join) Agent Sue Boynton Pinehurst Resort Realty (704) 564-8139 wwwpinehurstresort-realtycom
Built in 2006 this brick home on the 18th fairway of the Beacon Ridge golf course has four bedrooms and three baths Club membership attached Agent Dawn Crawley Pinehurst Resort Realty (910) 783-7993 wwwpinehurstresortre-altycom
Located on Pinehurst No 2 golf course this home has four bedrooms and five baths and is walking distance to the His-toric Village of Pinehurst The home is located in Pinehurstrsquos prestigious gated community Fairwoods 7 Agent Marga-ret Chirichingo Pinehurst Resort Realty (704) 564-8139 wwwpinehurstresortre-altycom
WHAT 3-bedroom homeHOW MUCH $225000
WHAT 4-bedroom houseHOW MUCH $399000
WHAT 4-bedroom homeHOW MUCH $1499000
13
MARCH 2015
of North Carolina were hit hardest Lott said
ldquoThe recovery started on the shores of the Atlantic and is slowly working its way inlandrdquo said Lott a former reporter for Golf Digest referring to the westward movement of North Carolinarsquos golf real estate recovery ldquoThe pace of the recovery is going to be different in the various geographical areas The mountain areas are still having the most troublerdquo
During the recent real estate boom developers and home buyers believed residential golf communities were a sure-fire bet Many buyers purchased properties to flip for a quick profit Others were lured for the country club amenities stunning views and security of the gated communities While there are no reliable data on the growth of master-planned golf communities real estate brokers and market analysts say the market is slowly recovering
Clearly the recession of 2008 sliced the growth of golf communities into the rough According to the National Golf Foundation only 14 new courses opened in the United States in 2014 the fewest in 25 years while almost 160 of the countryrsquos 14600 18-hole golf facilities shut down Last year marked the eight straight year that more courses closed than opened
Pinehurst Central North Carolina At Pinehurst (No 2) the luxurious golferrsquos resort in the arid sand hills of south-central North Carolina housing prices remain comparatively reasonable considering that most of the property in Pinehurst comes with a membership to Pinehurst Country Club Pinehurst and its surrounding communities mdash known locally as ldquothe Sandhillsrdquo mdash is located in Moore County Pinehurst is transiting from a playground for retirees into a younger family-friendly resort according to Sue Boynton an associate broker with Pinehurst Resort Realty in Pinehurst NC
ldquoA lot of the buyers here in Pinehurst are from the northeastrdquo said Boynton an avid golfer who lives in the Doral Woods golf community in Pinehurst ldquoBut there are a lot from Charlotte toordquo
As one of the countryrsquos first golf resorts Pinehurst is viewed as the cradle of the sport Pinehurst which ranks 16th on Golf Magazinersquos list of Top 100 Courses in the World is located 60 miles southwest of Raleigh No golf community in America is as rich in golf history as Pinehurst which is home to 42 golf courses many of them world renowned Last year for example the 120-year old Pinehurst resort hosted two of golfrsquos greatest stateside productions mdash the US Menrsquos Open and the Womenrsquos Open Golfers Vickie and David Bowles who purchased a historic home on the tee box of hole 5 on Pinehurst (No 2) in 2013 said they enjoy the layback atmosphere of the Pinehurst Village ldquoOne thing I love about Pinehurst is that I get to spend time with my husbandrdquo said Vickie Bowles referring to time together on the links with her husband David ldquoI had to learn golf and he had to
learn how to snow ski The weather is exceptional and the wersquore close to the mountains and the beaches of North Carolinardquo Built in 1895 on 5500 acres of the Sandhills region of North Carolina the Village of Pinehurst was originally developed as a health resort for patients recovering from tuberculosis As the popularity of North Carolina has surged so have real estate prices Home sites of $600000 are common And homes priced above $5 million donrsquot turn heads Boynton said She said most of the Pinehurst properties come with a membership to the Pinehurst Country Club Property ownership is the only requirement for membership said Bowles
ldquoPinehurst Resort is uniquerdquo said Boynton ldquoIf somebody loves golf Pinehurst is the place to be Itrsquos becoming a neighborhood-friendly community It is
Continued Next Page
David LottFounderPublisher
GolfCourseHomecom Vineyard Haven Mass
The recovery started on the shores of the Atlantic and is slowly
working its way inland The pace of the recovery is going to be different in the various geographical areas The
mountain areas are still having the most
trouble
14
MARCH 2015
increasingly transitioning to younger familiesrdquo
To become a member of the Pinehurst Country Club you have to own property in Pinehurst said Boynton Pinehurst home buyers are required to pay a $12500 transfer fee which is often included in the purchase price and $381 in monthly dues
ldquoPeople are still buyingrdquo said Boynton citing that people from all over the world come to Pinehurst and nearby Southern Pines to play golf and ride horses The area is rural with horse properties and farms Increasingly she said non-golfers are buying in golf communities
According to a survey conducted by Better Homes and Gardens Real Estate 57 percent of baby boomers say they plan to move to a new home in retirement When asked which type of community they were likely to choose 39 percent said a small town like Pinehurst or a rural community The next choice was a 55-and-older community (27 percent) followed by urban living (26 percent) and 25 percent said they would buy a second home such as a vacation beach house or a golf course community
Golf went mainstream in America in the 1890s according to Richard J Moss author of ldquoThe Kingdom of Golf in Americardquo a rich and colorful history of the sport Its popularity and its fortune has waxed and waned in response to larger economic events As America prospered in the 20th century public courses opened alongside private clubs and exposed more people to the sport Between 1992 and 2001
at least 60 percent of new golf courses were tied to property developments writes Moss Golf courses increase the value of surrounding homes and developers built long complicated courses with the hope of attracting tournaments and selling more homes
Moss points out that golf and real estate deals have always been connected Nationwide approximately 60 percent of golf courses are linked to real estate development claims Moss Courses came to be designed with premium-priced houses bordering fairways similar to houses bordering beaches
Moss believes that neither the recession nor the eclipse of its brightest star can stymie professional golf Today according to Moss there are roughly 16000 golf courses in America half or more of the golf courses in the world Average prize money for a PGA Tour event doubled between 2000 and 2010 from $33 million to $6 million reports
Continued Next Page
If somebody loves golf Pinehurst is the place to be Itrsquos becoming a
neighborhood-friendly community It is
increasingly transitioning to younger families
Sue BoyntonAssociate Broker
Pinehurst Resort Realty Pinehurst NC
Pinehurst Resort amp Country Club - No 4 Pinehurst NC
15
MARCH 2015
the Economist In 2014 professional golfers were some of the highest paid athletes in America Phil Mickelson the amiable left-hander ranked 6th nationwide making $37 million according to Fortune Magazine Tiger Woods despite his back problems and not winning a major tournament since 2008 ranked 7th pulling in $35 million
According to the latest list of Golf Digestrsquos top 100 public and private golf courses in the US five North Carolina courses make the cut Leading the list is Tom Fazio-designed Wade Hampton Gold Club in Cashiers NC Pinehurst No 2 was the next highest course ranked on the list coming in at 28 on the list Rounding out the top five are all Fazio designs including Mountain Golf and Lake Club in Cashiers (No 78) Eagle Point Golf Club in Wilmington (No 89) and Diamond Creek Golf Club in Banner Elk (No 94)
Western North Carolina In the mile-high mountains of western North Carolina some of the best golf real estate is found atop the famed Blue Ridge Mountains the tallest peaks of the eastern United States
ldquoOur area is considered the worldrsquos premier mountain golf mecca with two of the top three mountain golf clubs in the world Wade Hampton Golf Club and Mountaintop Golf and Lake Clubrdquo said Bill Kruckenberger brokerowner of Sapphire Valley Real Estate in Sapphire NC ldquoBoth are Fazio courses also considered to be in the top 100 courses worldwide There are a ton of high-end mountain golf courses on our very small mountain plateau (including Bobby Jones summer club Highlands Country Clubrdquo
Kruckenberger knows a thing or two about golf Although hersquos not a golfer he sold the arearsquos public golf course Sapphire National Golf Club not once mdashbut twice
Continued Next Page
Bill KruckenbergerBrokerOwner
Sapphire Valley Real Estate
Sapphire NC
Our area is considered the worldrsquos premier mountain golf mecca with two of the
top three mountain golf clubs in the world
Perched 4400 feet atop the Blue Ridge Mountains buyers can enjoy big moun-tain views from this three bedroom and 3 bath Sapphire Valley Resort home Membership in the Sapphire National Golf Club is included Agent Bill Kruck-enberger Sapphire Valley Real Estate (828) 506-8398 httpwwwsapphirev-alleypropertiescom
WHAT 3-bedroom homeHOW MUCH $585000
This custom golf community home has five bedrooms and three baths Located minutes from Asheville this home is a golfers dream Agent Jeff Stewart Keller Williams Professionals (828) 337-8837 httpwwwbrokerjeffnet
WHAT 5-bedroom houseHOW MUCH $484900
Located on Wade Hamptonrsquos 8 fairway this two-story home has five bedrooms and seven baths and is walking dis-tance to the clubhouse This golf-front mountain home is located in township of Cashiers NC in a prestigious gated community Agent Bill Kruckenberger Sapphire Valley Real Estate (828) 506-8398 httpwwwsapphirevalleyproper-tiescom
WHAT 5-bedroom homeHOW MUCH $2975000
THREE FOR SALE Western North Carolina Golf Homes
16
MARCH 2015Nestled 4000 feet in the Great Smoky Mountains the golfing community of Wade Hampton is a luxury North Carolina mountain real estate golf community 65 miles southwest of Asheville
Kruckenberger has a healthy business selling to second-home buyers and retirees and renting many of those homes out to vacationers He said home prices at Wade Hampton range from $700000 for a cottage to $5 million At Sapphire National Golf Club a two-
bedroom condominium sells for $150000 and homes can sell as high as $5 million
ldquoOur area is 90 percent second-home buyersrdquo he said ldquoA good number are retirees Most buyers are out of state Florida is the number one source of buyers in our area They come to escape the heat in Florida and enjoy the cool mountain air We have a good number of buyers from South Carolina and Georgia And Texans are coming in drovesrdquo
Coastal North Carolina Increasingly golf communities offer a country club experience with swimming tennis spas fine dining and waterfront homes Maritime golf real estate resorts abound along North Carolinarsquos Atlantic coast In southeastern North Carolina along the statersquos 300-mile Atlantic coast some top-notch golf resorts await buyers who like seaside second home properties according Vance Young a broker with Intracoastal Realty in Wrightsville Beach NC
Young said coastal golf home buyers are seeking other amenities beside golf
Continued Next Page Wade Hampton Golf Club Cashiers NC
17
MARCH 2015ldquoAs far as general trends I do see and emphasis on location good shopping access to medical care and transportationrdquo said Young a top producer who sold 125 homes last year for $81 million in sales ldquoBuyers are becoming more demanding and more selective These additional amenities have become critically important the last few yearsrdquo
At Landfall a 2200 acre gated development with 1600 homes nestled along the coast near Wrightsville Beach and Figure Eight Island just nine miles northeast of Wilmington NC buyers can enjoy golf homes at the Country Club of Landfall which offers 45 holes of championship golf 27 designed by Jack Nicklaus and 18 crafted by Peter Dye said Young
Young said buyers are attracted by Wilmington NC the riverfront community along Cape Fear River which features a Riverwalk with over 200
restaurants and shops
In Landfall a golf course townhomes start at $300000 and go up to $700000 he said Single family homes range from $500000 to $5 million The closer you are to the beach the more expensive the homes become
ldquoMost of the residents of Landfall mdash 85 to 90 percent mdash are primary residentsrdquo said Young the No 1 ranked broker in Hanover County who specialize in waterfront and golf resort communities of Wrightsville Beach Figure Eight Island and Landfall ldquoBut we also have a large contingent of second-home owners who come largely from the east coast especially Virginia DC New York and New Jerseyrdquo
As American golf enters the second century of existence it faces a supply-and-demand dilemma too many courses and not enough players But in North Carolina golf real estate is soaring like an eagle
Coastal North Carolina Golf Homes
Vance YoungBroker
Intracoastal RealtyWrightsville Beach NC
As far as general trends I do see an emphasis on location good shopping access to medical care
and transportation
Overlooking the second tee of the Jack Nicklaus golf course at the Country Club of Landfall this beautiful four bedroom five bath Landfall NC French Country inspired design home has a pool and is move-in ready Agent Vance Young In-tracoastal Realty Corp (910) 232-8850 httpVanceYoungcom
This Landfall brick home has four bed-rooms and four baths wit 10 foot ceil-ings and 8 foot doors throughout This Steve Dunn built home is walking dis-tance to the Country Club of Landfall Agent Vance Young Intracoastal Re-alty Corp (910) 232-8850 httpVanc-eYoungcom
WHAT 4-bedroom homeHOW MUCH $769000
Built in 2006 this brick home overlooks the Jack Nicklaus Pines 4 fairway in Landfall NC It has three bedrooms and four baths The home features granite kitchen stainless appliances and a five burner gas range Agent Alison Bern-hart Landfall Realty LLC (800) 227-8208 httpwwwlandfallrealtycom
WHAT 3-bedroom houseHOW MUCH $689000
WHAT 4-bedroom homeHOW MUCH $1199900
THREE FOR SALE
18
MARCH 2015BOOK REVIEWThe GM Building New Yorkrsquos Most Sought After PropertyBy Octavio Nuiry Managing Editor
The General Motors Building isnrsquot the most iconic building in New York City Nor is it the tallest or most elegant But something about the glemming 50-story white marble tower that real estate tycoons canrsquot resist
In ldquoThe Liarrsquos Ball The Extraordinary Saga of How One Building Broke the Worldrsquos Toughest Tycoonsrdquo (Wiley 2014) Vicky Ward lifts the veil on New York Cityrsquos cutthroat world of high-stakes real estate shining the
spotlight on the half-century fight to own one of Americarsquos most desired pieces of real estate the General Motors Building on 5th Avenue in Manhattan
The book largely tells the tragic rise-and-fall of flamboyant New York real estate developer Harry Macklowe who in 2003 engineered the biggest real estate transaction in US history when he bought the GM Building for an unprecedented $14 billion in borrowed funds
Not only does Ward chronicle Macklowersquos recklessness but the book also is an entertaining behind the scenes glimpse at a cast of high-powered New York City real estate tycoons who lie cheat steal mdash and sue each other mdash to acquire NYC trophy properties
The colorful book which spans 150 years of New York real estate history not only documents the history of the GM Building
but some of its flowery suitors including the corrupt politician William ldquoBossrdquo Tweed Cecila Banatter the ldquohousewife tycoonrdquo too busy to name her baby Max Rayne the English property developer who snapped up the iconic Savoy-Plaza Hotel (site of the future GM Building) Disque D Deane the unlovable rogue financier Rita Jenrette Harry Macklowe and Donald Trump She shows how grown men mdash and some powerful women mdash behave like children when their toys are taken away from them
Built by General Motors for corporate offices and a show room on the southeast corner of Central Park in 1968 the GM Building is not New Yorkrsquos tallest skyscraper or most beautiful but it is
desirable in the real estate world for its location across from the Plaza Hotel But itrsquos an iconic trophy tower mdash the most expensive office tower in America mdash that occupys an entire city block and has brought out the worst in a string of landlords from Bill Zeckendorf to Harry Macklowe writes Ward General Motors Co later sold the building but maintained a sizeable presence as a tenant for years
The bookrsquos title comes from the annual black tie gala that the Real Estate Board of New York throws itself every January at the Hilton Grand Ballroom
ldquoEvery year toward the end of January around 2000 members of the New York real estate industry gather at the Hilton to celebrate hellip an event affectionately known by its attendees as lsquothe
Liarrsquos Ballrdquo writes Ward ldquoItrsquos rough itrsquos vulgar and itrsquos a riveting showrdquo
Ward is a New York-based British-born investigative journalist and former contributing editor at Vanity Fair
In 1998 Donald Trump teamed up with financial services company Conseco to buy the building for $878 million from GM which relocated back to Detroit Trump cleaned up the white marble
The Liarrsquos BallBy Vicky Ward
(Wiley 240 pages $2995)
Continued Next Page
Every year toward the end of January around 2000 members of the New York
real estate industry gather at the Hilton to celebrate hellip an event affectionately known
by its attendees as lsquothe Liarrsquos Ball Itrsquos rough itrsquos vulgar and
itrsquos a riveting show
Vicky Ward Author
ldquoThe Liarrsquos Ballrdquo
19
MARCH 2015
walls put in new granite floors emblazed his name on the front of the building and raised rents By 2001 Trump had a chance to buy the entire building for $995 million but he hesitatedTrumprsquos loss was Macklowersquos gain In 2003 Macklowe bought the GM Building from Trump and Conseco for a then-record price of $14 billion Soon Macklowe convinced Steve Jobs then CEO of Apple to open a subterranean flagship store with a glass cube in front of the GM Building It opened in 2006 and was a retail success Now the Apple Store is one of New Yorkrsquos major retail locations
ldquoFor four year Macklowe was riding high after his unexpected success with the GM Building where his visionary ideas mdash including the creation of the iconic Apple flagship store in the basement mdash created $1 billion in valuerdquo writes Ward
Soon however Macklowersquos luck ran out
Convinced he could pull off an even bigger deal Macklowe put
the building up as collateral for a $72 billion loan but the market turned and Macklowe lost the GM Building He sold the building for $28 billion in 2008
The $28 billion price tag remains the highest price ever paid for a single office building in the US
Today the General Motors Building is owned by Boston Properties (which controls 60 percent of the ownership) Chinese developer Zhang Xin and Brazilrsquos Safra Group (each owning a 20 percent stake) The latest deal values the property at $34 billionBut not everyone is a fan of the book
Donald Trump told the New York Post that ldquothe book doesnrsquot capture the essence the glamour or excitement of what happenedrdquo On Twitter Trump wrote ldquoJust finished reading a poorly written and very boring book on the GM Buildingrdquo calling Ward a ldquothird rate writerrdquo
The General Motors Building
DOWNLOAD REALTYTRACrsquoS FREE 2014 GUIDE TO SHORT SALES
State Rank
State Default Auction REO Total 1every X HU (rate)
Δ from Jan 2015
Δ from Feb 2014
US Total 31753 45880 24305 101938 1295 -429 -939
14 Alabama 0 1370 312 1682 1295 6555 2359
30 Alaska 60 59 24 143 2144 1917 2222
24 Arizona 0 1216 395 1611 1775 -2076 -2603
41 Arkansas 0 220 158 378 3494 -979 -503
13 California 5029 4301 2208 11538 1190 -793 -1161
26 Colorado 0 888 267 1155 1924 -2539 -1012
31 Connecticut 234 146 309 689 2158 -5238 -5834
8 Delaware 202 171 53 426 957 -819 1123
District of Columbia 5 37 2 44 6780 23846 52857
3 Florida 3576 7373 4844 15793 570 -1496 -3469
17 Georgia 0 1881 1014 2895 1414 1135 -2834
39 Hawaii 61 47 87 195 2678 598 773
5 Idaho 523 185 56 764 877 2797 11105
7 Illinois 2676 1649 1515 5840 906 -1917 -1051
4 Indiana 1225 1270 721 3216 871 1798 2289
21 Iowa 453 210 138 801 1674 6182 -3223
22 Kansas 231 347 139 717 1723 2535 5689
34 Kentucky 102 534 209 845 2284 4322 1544
27 Louisiana 272 444 297 1013 1949 846 -3494
37 Maine 127 86 62 275 2625 -3514 -5150
1 Maryland 1650 1520 1061 4231 564 1010 -087
32 Massachusetts 746 373 156 1275 2203 897 5269
16 Michigan 746 2178 1030 3208 1412 1154 484
40 Minnesota 0 470 315 785 2999 -2758 -1771
45 Mississippi 0 180 57 237 5390 -1350 33091
35 Missouri 0 706 352 1058 2565 -3424 -1314
49 Montana 0 26 19 45 10740 -1818 -2857
44 Nebraska 71 64 42 177 4521 -2063 11325
2 Nevada 1079 609 381 2069 569 687 1184
43 New Hampshire 0 93 53 146 4214 -4983 -6507
6 New Jersey 2283 1293 406 3982 895 -833 -1721
29 New Mexico 253 80 91 424 2128 -921 -1452
25 New York 3251 702 524 4477 1812 416 1948
10 North Carolina 2234 1107 657 3998 1088 053 10020
50 North Dakota 0 3 2 5 64942 6667 6667
9 Ohio 1480 2138 1505 5123 1000 -739 -590
33 Oklahoma 151 402 201 754 2215 2715 -157
12 Oregon 451 689 326 1466 1144 3512 7663
15 Pennsylvania 1299 1915 853 4067 1368 1118 860
42 Rhode Island 0 77 52 129 3585 -5770 -5257
11 South Carolina 872 734 293 1899 1129 717 -1364
47 South Dakota 0 22 24 46 7950 5862 222
23 Tennessee 0 1246 366 1612 1750 -1801 7315
28 Texas 3 3585 1185 4773 2110 1175 -033
20 Utah 173 366 96 635 1557 -2616 -2275
48 Vermont 0 22 12 34 9498 2143 12667
38 Virginia 0 965 315 1280 2642 -2228 -008
18 Washington 88 1316 637 2041 1421 -078 287
46 West Virginia 0 17 100 117 7529 12075 10526
19 Wisconsin 893 474 357 1724 1523 622 -3205
36 Wyoming 0 74 27 101 2604 5538 1744
February 2015 State-by-State Foreclosure Activity Summary
Rank Metro
Housing Units Per
Foreclosure Filing (Rate)
1 Tampa FL 495
2 Miami FL 539
3 Baltimore MD 547
4 Riverside CA 630
5 Chicago IL 721
6 Philadelphia PA 903
7 Washington DC 1113
8 Seattle WA 1213
9 Atlanta GA 1284
10 Los Angeles CA 1316
11 San Diego CA 1335
12 Detroit MI 1356
13 New York NY 1411
14 St Louis MO 1483
15 Phoenix AZ 1733
16 Dallas TX 1799
17 Minneapolis MN 2000
18 Houston TX 2155
19 San Francisco CA 2182
20 Boston MA 2763
TOP 20 Foreclosure rates in the
Nationrsquos 20 largest metros in February 2015
Housing News Report is a monthly publication dedicated to helping investors succeed by providing them with timely and relevant information about the housing market
EXECUTIVE EDITORDaren Blomquist
MANAGING EDITOROctavio Nuiry
WRITERSDaren Blomquist Octavio Nuiry Peter Miller
ART DIRECTIONEunice Seo
CONTACT USPhone 8003069886
LETTERS TO THE EDITORE-mail editorforeclosurenewsreportcomMail Housing News Report 1 Venture Plaza Suite 300 Irvine CA 92691
6
MARCH 2015said noting one solution hersquos found that works well for some of his clients with high-balance loans is to refinance them into jumbo loans ldquoOftentimes even the jumbo product has a better rate and with the jumbo product it goes by the old Fannie Mae rules (that donrsquot consider the transaction a cash-out refinance)rdquo
Of course the jumbo loan solution comes with its own challenges in the form of tighter debt-to-income limits and more documentation required according to Kohn
The Negative Equity ChallengeThe challenges are exponentially greater for homeowners without equity
ldquoWith equity we are seeing people cash out while they can but without we are seeing folks continue to try loan modifications stripping their seconds in BK (bankruptcy) short selling or unfortunately being foreclosed upon in many instancesrdquo said Brian Alper assistant vice president at Pacific Coast Title Company in Orange California
ldquoAt the 10-year mark yoursquore going to start seeing this become a big problemrdquo said Pam Marron a loan originator in Florida who started the website Housing Crisis Stories to address the continued problems many homeowners are still facing as a result of the housing crisis ldquoIf people are underwater they can do the HARP on the first but there is no relief for the HELOC unless they go delinquentrdquo
Marron was referring to the federal governmentrsquos Home Affordable Refinance Program designed to provide refinancing to underwater homeowners But the program is only applicable for mortgages backed by Fannie Mae and Freddie Mac and most HELOCs are not backed by the two government sponsered enterprises
No Hardship No HelpMarron said the only way many banks will provide relief to underwater homeowners with a recasting HELCO is if the homeowners are delinquent on their monthly payments evidence to the bank that the homeowner is truly experiencing a hardship
ldquoI canrsquot believe the banks are saying we canrsquot help you unless you go delinquentrdquo said Marron ldquoNo wersquore not
having a hardship but when this loan resets we are going to have a hardship Do you want to deal with it now or do you want to deal with it laterrdquo
According to the RealtyTrac analysis Florida mdash where Marron is based mdash has the second highest number of bubble-era HELOCs recasting over the next five years at 365739 and the third highest percentage of those recasting HELOCs that are underwater at 71 percent among all the states
Marron offered up two solutions for underwater homeowners with a recasting HELOC that would work better than the current practice of no hardship no help
First she recommends refinancing the HELOC at a lower interest rate and shorter term and make it fully amortizing right away
ldquo(The) borrower continues to make the same maybe a little bit higher payment and pay it down that much faster hellip Yoursquore definitely going to gain equity back that much quickerrdquo
This benefits the bank too according to Marron
ldquoDo the right thing and yoursquore still going to make moneyrdquo she said ldquoYoursquore not forgiving any part of the loan Yoursquore simply giving the consumer a vehicle to pay back the loan faster and yoursquore getting paid back soonerrdquo
Marronrsquos second solution is simply a short sale although those can be tougher to negotiate when a second mortgage is involved
ldquoIf we are not going to help these people who are staying in their homes and trying to do the right thing If they are getting hit with these resets on the seconds and they are already struggling with the first hellip and finally giving up hellip the best solution is a short salerdquo she said
ldquoIrsquom having a huge number of these folks resetting and not knowing what to dordquo Marron continued ldquoMy fear is that there is a wave of trouble coming if we donrsquot look at it nowrdquo
The conversation doesnrsquot become is your rate going up itrsquos how much is it going up Theyrsquore at the end of their journey I think yoursquoll see a rush for the door
Ted KohnSenior Mortgage Planner
RPM Mortgage IncManhattan Beach Calif
7
MARCH 2015
MY TAKE By Leonard Kiefer Deputy Chief Economist Freddie Mac
The spring home buying season is underway Between now and the end of June wersquoll see about 40 percent of all home sales for the year So these next few months will essentially tell us whether or not 2015 will be a good or bad year for housing markets
Overall wersquore feeling good about housing In fact we expect the best year for home sales and new home construction since 2007
Here are the top three reasons to be optimistic about housing markets in 2015
High AffordabilityAbout 80 percent of metro markets in the US are affordable based on data through the 4th quarter of 2014 on the three primary drivers of affordability house prices interest rates and income
Letrsquos look at the house price part of the equation first House prices continue to rise across the country but are still about 10 percent below their 2006 peak nationally But peak-to-trough comparison can be misleading as many markets experienced unsustainable highs during the last decade Instead when we look at fundamental drivers like payment-to-income and price-to-rent ratios we see that most markets have home values that are sustainable Of the top 50 metros we track in our Multi-Indicator Market Indexreg (MiMi) only Los Angeles has house prices that are elevated given household incomes and mortgage rates Prices remain attractive in most markets
Prices are especially attractive given that mortgage rates remain low the second affordability driver From January 2014 to January of 2015 mortgage rates fell nearly three-fourths of a percentage point Though rates have rebounded from their lows at the end of January rates are significantly below the level from one
year ago Low interest rates do a lot to help support homebuyer affordability But it is the third component mdash household incomendash that will be the key driver of housing markets Incomes have largely stagnated over the past decade barely rising and after adjusting for inflation actually falling for the median household But there have been glimmers of good news in the most recent jobs report which showed income up 22 percent year-over-year With a pickup in economic growth in the second half of 2014 households may be beginning to see a gradual pickup in wages Moreover improved job prospects have started to drive those in prime working ages 24 to 54 back to the labor force But this will require patience Not only were younger cohorts the hardest hit during the downturn there are also the ones struggling the most to get back on their feet Rising wages and salaries will do much to help propel housing markets forward but the full effects will take time
Spring Home Buying Kicks Off Best Year for Homes Sales in Seven Years
Continued Next Page
SOURCE Freddie Mac
8
MARCH 2015Rising RentsNot only is affordability high but rents have been rising rapidly across the country driven by strong demand nationwide Rents increased an average of 36 percent in 2014 and nearly 11 percent over the last three years With demand rising rapidly given the improved job prospects for younger households and vacancy rates at low levels we expect to see rents rise at or above inflation this year as well This may be the tipping point Many current renters may decide to strike while the iron is hot (mortgage rates are low and home prices not too high) and purchase a home this year
In fact study findings support that many feel it could make financial sense to buy today According to an online survey of over 2000 US adult renters commissioned by Freddie Mac and conducted by Harris Poll in November 2014 of those renters who said that they would ever consider buying a home 39 percent already think buying a home is a better financial option than renting
Expanded Credit AvailabilityBut will financing be available for these prospective homebuyers We believe it will be given the wider credit availability in the market today Even for those renter households hit by rising rents who have been unable to save much for a down payment but have good credit and a good-paying job
Broader access to credit will be driven by a confluence of factors including new products First more certainty for lenders through the enhanced representation and warranty framework will help ease credit overlays and facilitate more lending Second reduced premiums by the Federal Housing Administration will help many prospective first-time homebuyers enter the market with a federally insured loan Finally new 3 percent down mortgage products should help those qualified borrowers who have limited down payment savings buy homes with conventional financing These new products will be especially important for prospective first-time homebuyers that have been sitting on the sidelines According to the National Association of Realtors (NAR) Annual Survey of Home Buyers and Sellers the share of first-time buyers in the market fell to its lowest point in nearly three decades in 2014 mainly because rising rents and repaying student loan debt is making it more difficult to save for a down payment especially for younger adults
Unlike Punxsutawany Phil who predicted six more weeks of winter wersquore much more optimistic about the spring home buying season and home sales overall in 2015 We expect that a rapidly improving labor market income growth and only a gradual increase in mortgage rates will support the best year for home sales and new home construction since 2007 with home sales increasing nearly 4 percent from last year and new home construction up nearly 20 percent
Sources Freddie Mac House Price Index Reis Inc Freddie Mac February Outlook
Leonard Kiefer was appointed to the position of Deputy Chief Economist in December 2012 As the Deputy Chief Economist Kiefer is responsible for primary and secondary mortgage market analysis and research macroeconomic analysis and forecasting Kiefer is also involved in the analysis of policy issues affecting the housing industry
Kiefer joined Freddie Mac in 2009 as a Senior Economist He was previously an assistant professor at Texas Tech University in Lubbock Texas where he conducted research on macroeconomics and monetary policy He has also taught economics at The Ohio State University and finance at George Mason University
Kiefer holds a BA in economics from the University of Kentucky and a PhD from The Ohio State University
84
76
58
46 47 45 46
50
55 54 56
58
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Total Home Sales (Millions) Source NAR CensusHUD Freddie Mac
Forecast
SOURCE Freddie Mac
9
MARCH 2015
Realtor Sentenced to 3 Years in PrisonA Seal Beach Calif real estate agent was sentenced to 3 years in federal prison for operating a $14 million fraud scheme in California that bilked investors who paid money in response to false promises of ownership in commercial real estate according to the US Attorney
Karen Hanover 48 was sentenced by United States District Judge Josephine Staton Judge Staton scheduled a May 8 hearing to determine how much restitution should be paid to approximately 45 victims
Hanover pleaded guilty last year to one count of mail fraud related to the scheme she ran out of two Long Beach companies mdash Commercial Investment Education LLC and Kharmic Life Strategies Inc ldquoFast Trackrdquo investment program to investors who attended seminars in Southern California Dallas and Las Vegas
Victims were induced to invest between $19000 and $29000 in the real estate scam In her pitches Hanover ldquofalsely represented to the lsquoFast Trackersrsquo that she would partner with them in real estate deals they would receive 100 percent returns on their investments and she would provide a 100 percent refund if they did not obtain a commercial property within a yearrdquo according to court documents that noted these promises were false
SOURCE US Attorney
Brokerage Realogy Launches Search PortalMove Inc which is owned by News Corp and operates the NRT the nationrsquos largest residential real estate brokerage has launched a new home search portal mdash HomesForSalecom mdash a national property portal to compete with Zillow Trulia and Move
NRT is the subsidiary of Realogy that operates real estate brokerages under Realogyrsquos Coldwell Banker Coldwell Banker Commercial Sothebyrsquos International Realty and Zip Realty brands It also owns regional brands The Corcoran Group and Citi Habitats NRT has over 42000 agents and operates over 700 offices in the US
SOURCE News Corp
Vanilla Ice Arrested for Alleged BurglaryRapper-turned rehabber Vanilla Ice was arrested Feb 18 2015 for an alleged home burglary in Lantana Fla
The former rapper whose real name is Robert Van Winkle was arrested in Lantana Fla accused of stealing furniture from a neighborrsquos home
According to Lantana police furniture a swimming pool heater and bicycles were found at Van Winklersquos property and later returned to the owner He is currently renovating a home adjacent to the property in which the items were stolen police said
Van Winkle has a home renovation show on the DIY Network ldquoThe Vanilla Ice Projectrdquo where he and a crew refurbish foreclosed or distressed homes around Palm Beach County
SOURCE Sun-Sentinel
Realtor Safety Survey The recent death of a South Florida home shopper gunned down while looking at a home in Fort Lauderdale on February 27 has the real estate industry talking about safety
Despite several tragedies in the residential real estate world over the last few years a new survey from the National Association of Realtors found that 96 percent of Realtors have never been a victim of crime But 40 percent of Realtors have found themselves in situations where they fear for their safety the survey found
The survey found that one-third of the 3000 Realtors surveyed said they carry a self-defense weapon Female Realtors are more likely to carry pepper spray while male Realtors more commonly carry a firearm Many agents 38 percent have participated in self-defense classes and 13 percent use a smart phone safety application to track their whereabouts or alert colleagues of an emergency
SOURCES National Association of Realtors Sun-Sentinel
NEWS BRIEFS
10
MARCH 2015
Trulia Will Lose Listing Data in April The online battle between Move Inc and Zillow Group flared up again
Listing syndicator ListHub will stop supplying listings on April 7 giving the nationrsquos second largest real estate listing site less than a month to find an alternative source for more than a quarter of its listings
On Feb 23 a San Francisco judge granted Trulia Inc a temporary restraining order to keep receiving listings data from ListHub
ListHub mdash which is owned by realtorcom and operated by Move Inc a News Corp subsidiary mdash announced Feb 20 that it had terminated its syndication agreement with Trulia in the wake of its acquisition by Zillow and would stop sending listings to Trulia on Feb 26
According to a copy of Truliarsquos complaint obtained by Inman News Trulia which could lose 25 percent of its listings data filed a 52-page complaint against Move Inc in San Francisco Superior Court claiming breach of contract Judge Ernest H Goldsmith scheduled a March 12 court hearing to determine whether or not to compel Move to abide by the original June 19 2016 termination date of its agreement with Trulia
Both Zillow and Trulia will lose listing information from ListHub when the contract between those two entities expires
SOURCES Inman News Courthouse News
W Va Supreme Court Rules in Favor of MERS On February 5 the Supreme Court of Appeals of West Virginia held that the recording of trust deeds do not have to be recorded at the office of the clerk of the county commission
In State of W Va v Waren McGraw the Court disagreed with Wyoming Countyrsquos claims that the recording of trust deed assignments in county record books is required by state law ldquoin order to clear title to properties in the Countiesrdquo While the Counties did not name MERSCORP Holdings Inc or Mortgage Electronic Registrations Systems Inc (MERS) as a defendant in the case the allegations in the complaint were focused on challenging the operations of MERS and the MERSreg System
In his opinion West Virginia Supreme Court of Appeals Justice Menis E Ketchum II said that ldquorecording statutes in West Virginia do not require that the assignment of a trust deed be recorded in the office of the clerk of the county commissionrdquo
SOURCE W Va v Warren McGraw
MetLife Fined $123M for Bad LoansMetLife will cough up $1235 million to settle claims that it knowingly approved federally insured home loans for people who didnrsquot qualify according to the US Justice Department
As part of the settlement MetLife Home Loans admitted that its predecessor mdash MetLife Bank mdash repeatedly certified for Federal Housing Administration insurance on mortgage loans that didnrsquot meet federal underwriting requirements between 2008 and 2012
Furthermore MetLife admitted that the bank knew a large number of the loans were not eligible for FHA mortgage insurance through its own quality control practices Between 2009 and 2010 the bank discovered that anywhere from 25 to 60 percent of these loans were seriously deficient mdash findings that were regularly shared with the bankrsquos CEO and its directors the Justice Department said
Over a two-year period the bank self-identified 1097 mortgages insured by the FHA that were seriously deficient but only reported 321 of them to the Department of Housing and Urban Development As a result FHA insured hundreds of home loans that werenrsquot eligible mdash causing the agency to suffer serious losses when it later paid insurance claims on the loans
ldquoMetLife Bankrsquos improper FHA lending practices not only wasted taxpayer funds but also inflicted harm on homeowners and the housing market that lasts to this dayrdquo said Acting Assistant Attorney General Joyce R Branda of the Justice Departmentrsquos Civil Division ldquoAs this settlement shows we will continue to hold accountable financial institutions that elected to ignore the rules and to pursue their own financial interests at the expense of hardworking Americansrdquo
SOURCE Justice Department
LEGAL BRIEFS
11
MARCH 2015
Housing Rising Student Loan DebtGrowing student loan debt is weighing down on an already tepid housing market according to fresh data from the New York Federal Reserve Rising student loan debt is shutting out potential buyers A new report from the Federal Reserve shows that student loan debt rose in the fourth quarter of 2014 to a record $116 trillion dollars Thatrsquos 7 percent higher than the year before And delinquencies are rising too with current default rates at more than 11 percent Historically first-time home buyers are people in their 20s and 30s but this same age group is carrying a majority of that $116 trillion in loan debt According to the Fed the rising student loan debt is decreasing both household formation and home ownership Labor market growth and higher wages will help shrink student loan debt according to economists
Rents New York Rents Too HighNew Yorkers are now spending approximtely 60 percent of their income to live in Manhattan according to a new study by the website Streeteasy The median monthly New York rent hit $2700 mdash or more than 58 percent of residentsrsquo median income Residents in Brooklyn pay the highest median rent cost mdash 60 percent Surprisingly Manhattanites arenrsquot the worst off Residents in Brooklyn pay the highest median rent cost mdash 60 percent They are followed by those living in the Bronx at 52 percent Manhattan at 49 percent Queens at 41 percent and Staten Island at 30 percent
Trends Millennials Lead All BuyersThe millennial generation represented the largest share of recent home buyers according to a new report from the National Association of Realtors The 2015 National Association of Realtors ldquoHome Buyer and Seller Generational Trends Reportrdquo found that an overwhelming majority of buyers search for homes online and then purchase their home through a real estate agent with millennials also known as Gen Y using agents the most With millennials entering the peak buying period and expected to soon surpass boomers in total population the NAR believes the share of millennial purchases would be higher if not for the numerous obstacles that have slowed their journey to homeownership
Study Consumer Confidence Grows Consumer optimism toward the economy is growing and appears to be contributing to further improvement in overall housing sentiment according to Fannie Maersquos National Housing Survey Most consumers expect home rental prices to continue to rise in the next year but 43 percent still think it is too difficult to get a mortgage the survey found The share of respondents who believe the economy is headed in the right direction increased 3 percentage points in February to an all-time survey high of 47 percent while the those who believe it is headed in the wrong direction decreased to 45 percent a new survey low ldquoWe continue to see strength in attitudes about the current home buying and selling environment and consistently high shares of consumers saying they expect to buy a home on their next moverdquo said Doug Duncan senior vice president and chief economist at Fannie Mae
Tech Smart Homes Sell Faster As smart home technology plays a larger role in real estate Coldwell Banker Real Estate LLC recently released a survey uncovering what smart features home buyers are looking for when purchasing a home and how those features impact a home sale Coldwell Banker also published a list of 25 smart home products and systems in the categories that matter most to buyers A survey of 500 Coldwell sales associates found that 62 percent of buyers want to control their home from their smart phone or tablet One third (33 percent) said that homes with smart home technology sell faster than homes without them Gen X (age 35-49) is the ldquosmartestrdquo generation of home buyers interested in smart home technology today the survey found
Study Remodeling RecoveryThe $300 billion US home improvement industry is faring much better than the broader housing market according to a new report from the Joint Center for Housing Studies of Harvard University ldquoEmerging Trends in the Remodeling Marketrdquo is the latest in the Improving Americarsquos Housing series published by the Joint Center While new home construction is many years away from full recovery the Center reports that Americarsquos home improvement industry could post record-level spending in 2015 with kitchen and bath upgrades leading the way
FINANCIAL BRIEFS
12
MARCH 2015
By Octavio Nuiry Managing Editor
North Carolina Teeing Up Real Estate in the Tar Heel State
In the game of golf an eagle mdash two strokes under par mdash is good news
In the real estate game buying a home located on a golf course is like sinking a housing eagle Not only do you waking up every morning to the possibility of golfing every day but many golf communities are attractive to buyers because of their safety beauty and quality of life
In 2013 Americans bought 717000 vacation homes up 30 percent from a year earlier and proximity to a golf course was a decisive factor for a third of the buyers according to the National Association of Realtorsrsquo 2014 Investment and Vacation Buyers Survey The median price of a vacation home in 2013 was $168700 up 125 percent from 2012
In the Tar Heel State golf and real estate are frequently tied together In North Carolina the vast geographical diversity provides golf home buyers with a wide choice of locations whether coastal inland or mountain From the shores of the Outer Banks to the rolling hills of the Black Mountains golf courses pepper the statersquos landscape Nearly 50 years after Hilton Head Island SC ushered in the first master-planned golf home community North Carolina is slowly recovering from the housing downturn
According to David Lott publisher and founder of Golfcoursehomenet golf communities were hit hard during the recent housing downturn Lott said since the recession the number of courses closing has outnumbered the courses opening He said North Carolina golf communities are slowly rebounding Golf communities in the remote western mountains
Continued Next Page
STATE SPOTLIGHT
Where Most of the Properties Come With a Club Membership AttachedTHREE FOR SALE
Resort community living at its finest in this beautiful all brick three bedroom home on a private wooded lot with wa-ter views and transferable Pinehurst Country Club membership (the buyer pays half initiation fee to join) Agent Sue Boynton Pinehurst Resort Realty (704) 564-8139 wwwpinehurstresort-realtycom
Built in 2006 this brick home on the 18th fairway of the Beacon Ridge golf course has four bedrooms and three baths Club membership attached Agent Dawn Crawley Pinehurst Resort Realty (910) 783-7993 wwwpinehurstresortre-altycom
Located on Pinehurst No 2 golf course this home has four bedrooms and five baths and is walking distance to the His-toric Village of Pinehurst The home is located in Pinehurstrsquos prestigious gated community Fairwoods 7 Agent Marga-ret Chirichingo Pinehurst Resort Realty (704) 564-8139 wwwpinehurstresortre-altycom
WHAT 3-bedroom homeHOW MUCH $225000
WHAT 4-bedroom houseHOW MUCH $399000
WHAT 4-bedroom homeHOW MUCH $1499000
13
MARCH 2015
of North Carolina were hit hardest Lott said
ldquoThe recovery started on the shores of the Atlantic and is slowly working its way inlandrdquo said Lott a former reporter for Golf Digest referring to the westward movement of North Carolinarsquos golf real estate recovery ldquoThe pace of the recovery is going to be different in the various geographical areas The mountain areas are still having the most troublerdquo
During the recent real estate boom developers and home buyers believed residential golf communities were a sure-fire bet Many buyers purchased properties to flip for a quick profit Others were lured for the country club amenities stunning views and security of the gated communities While there are no reliable data on the growth of master-planned golf communities real estate brokers and market analysts say the market is slowly recovering
Clearly the recession of 2008 sliced the growth of golf communities into the rough According to the National Golf Foundation only 14 new courses opened in the United States in 2014 the fewest in 25 years while almost 160 of the countryrsquos 14600 18-hole golf facilities shut down Last year marked the eight straight year that more courses closed than opened
Pinehurst Central North Carolina At Pinehurst (No 2) the luxurious golferrsquos resort in the arid sand hills of south-central North Carolina housing prices remain comparatively reasonable considering that most of the property in Pinehurst comes with a membership to Pinehurst Country Club Pinehurst and its surrounding communities mdash known locally as ldquothe Sandhillsrdquo mdash is located in Moore County Pinehurst is transiting from a playground for retirees into a younger family-friendly resort according to Sue Boynton an associate broker with Pinehurst Resort Realty in Pinehurst NC
ldquoA lot of the buyers here in Pinehurst are from the northeastrdquo said Boynton an avid golfer who lives in the Doral Woods golf community in Pinehurst ldquoBut there are a lot from Charlotte toordquo
As one of the countryrsquos first golf resorts Pinehurst is viewed as the cradle of the sport Pinehurst which ranks 16th on Golf Magazinersquos list of Top 100 Courses in the World is located 60 miles southwest of Raleigh No golf community in America is as rich in golf history as Pinehurst which is home to 42 golf courses many of them world renowned Last year for example the 120-year old Pinehurst resort hosted two of golfrsquos greatest stateside productions mdash the US Menrsquos Open and the Womenrsquos Open Golfers Vickie and David Bowles who purchased a historic home on the tee box of hole 5 on Pinehurst (No 2) in 2013 said they enjoy the layback atmosphere of the Pinehurst Village ldquoOne thing I love about Pinehurst is that I get to spend time with my husbandrdquo said Vickie Bowles referring to time together on the links with her husband David ldquoI had to learn golf and he had to
learn how to snow ski The weather is exceptional and the wersquore close to the mountains and the beaches of North Carolinardquo Built in 1895 on 5500 acres of the Sandhills region of North Carolina the Village of Pinehurst was originally developed as a health resort for patients recovering from tuberculosis As the popularity of North Carolina has surged so have real estate prices Home sites of $600000 are common And homes priced above $5 million donrsquot turn heads Boynton said She said most of the Pinehurst properties come with a membership to the Pinehurst Country Club Property ownership is the only requirement for membership said Bowles
ldquoPinehurst Resort is uniquerdquo said Boynton ldquoIf somebody loves golf Pinehurst is the place to be Itrsquos becoming a neighborhood-friendly community It is
Continued Next Page
David LottFounderPublisher
GolfCourseHomecom Vineyard Haven Mass
The recovery started on the shores of the Atlantic and is slowly
working its way inland The pace of the recovery is going to be different in the various geographical areas The
mountain areas are still having the most
trouble
14
MARCH 2015
increasingly transitioning to younger familiesrdquo
To become a member of the Pinehurst Country Club you have to own property in Pinehurst said Boynton Pinehurst home buyers are required to pay a $12500 transfer fee which is often included in the purchase price and $381 in monthly dues
ldquoPeople are still buyingrdquo said Boynton citing that people from all over the world come to Pinehurst and nearby Southern Pines to play golf and ride horses The area is rural with horse properties and farms Increasingly she said non-golfers are buying in golf communities
According to a survey conducted by Better Homes and Gardens Real Estate 57 percent of baby boomers say they plan to move to a new home in retirement When asked which type of community they were likely to choose 39 percent said a small town like Pinehurst or a rural community The next choice was a 55-and-older community (27 percent) followed by urban living (26 percent) and 25 percent said they would buy a second home such as a vacation beach house or a golf course community
Golf went mainstream in America in the 1890s according to Richard J Moss author of ldquoThe Kingdom of Golf in Americardquo a rich and colorful history of the sport Its popularity and its fortune has waxed and waned in response to larger economic events As America prospered in the 20th century public courses opened alongside private clubs and exposed more people to the sport Between 1992 and 2001
at least 60 percent of new golf courses were tied to property developments writes Moss Golf courses increase the value of surrounding homes and developers built long complicated courses with the hope of attracting tournaments and selling more homes
Moss points out that golf and real estate deals have always been connected Nationwide approximately 60 percent of golf courses are linked to real estate development claims Moss Courses came to be designed with premium-priced houses bordering fairways similar to houses bordering beaches
Moss believes that neither the recession nor the eclipse of its brightest star can stymie professional golf Today according to Moss there are roughly 16000 golf courses in America half or more of the golf courses in the world Average prize money for a PGA Tour event doubled between 2000 and 2010 from $33 million to $6 million reports
Continued Next Page
If somebody loves golf Pinehurst is the place to be Itrsquos becoming a
neighborhood-friendly community It is
increasingly transitioning to younger families
Sue BoyntonAssociate Broker
Pinehurst Resort Realty Pinehurst NC
Pinehurst Resort amp Country Club - No 4 Pinehurst NC
15
MARCH 2015
the Economist In 2014 professional golfers were some of the highest paid athletes in America Phil Mickelson the amiable left-hander ranked 6th nationwide making $37 million according to Fortune Magazine Tiger Woods despite his back problems and not winning a major tournament since 2008 ranked 7th pulling in $35 million
According to the latest list of Golf Digestrsquos top 100 public and private golf courses in the US five North Carolina courses make the cut Leading the list is Tom Fazio-designed Wade Hampton Gold Club in Cashiers NC Pinehurst No 2 was the next highest course ranked on the list coming in at 28 on the list Rounding out the top five are all Fazio designs including Mountain Golf and Lake Club in Cashiers (No 78) Eagle Point Golf Club in Wilmington (No 89) and Diamond Creek Golf Club in Banner Elk (No 94)
Western North Carolina In the mile-high mountains of western North Carolina some of the best golf real estate is found atop the famed Blue Ridge Mountains the tallest peaks of the eastern United States
ldquoOur area is considered the worldrsquos premier mountain golf mecca with two of the top three mountain golf clubs in the world Wade Hampton Golf Club and Mountaintop Golf and Lake Clubrdquo said Bill Kruckenberger brokerowner of Sapphire Valley Real Estate in Sapphire NC ldquoBoth are Fazio courses also considered to be in the top 100 courses worldwide There are a ton of high-end mountain golf courses on our very small mountain plateau (including Bobby Jones summer club Highlands Country Clubrdquo
Kruckenberger knows a thing or two about golf Although hersquos not a golfer he sold the arearsquos public golf course Sapphire National Golf Club not once mdashbut twice
Continued Next Page
Bill KruckenbergerBrokerOwner
Sapphire Valley Real Estate
Sapphire NC
Our area is considered the worldrsquos premier mountain golf mecca with two of the
top three mountain golf clubs in the world
Perched 4400 feet atop the Blue Ridge Mountains buyers can enjoy big moun-tain views from this three bedroom and 3 bath Sapphire Valley Resort home Membership in the Sapphire National Golf Club is included Agent Bill Kruck-enberger Sapphire Valley Real Estate (828) 506-8398 httpwwwsapphirev-alleypropertiescom
WHAT 3-bedroom homeHOW MUCH $585000
This custom golf community home has five bedrooms and three baths Located minutes from Asheville this home is a golfers dream Agent Jeff Stewart Keller Williams Professionals (828) 337-8837 httpwwwbrokerjeffnet
WHAT 5-bedroom houseHOW MUCH $484900
Located on Wade Hamptonrsquos 8 fairway this two-story home has five bedrooms and seven baths and is walking dis-tance to the clubhouse This golf-front mountain home is located in township of Cashiers NC in a prestigious gated community Agent Bill Kruckenberger Sapphire Valley Real Estate (828) 506-8398 httpwwwsapphirevalleyproper-tiescom
WHAT 5-bedroom homeHOW MUCH $2975000
THREE FOR SALE Western North Carolina Golf Homes
16
MARCH 2015Nestled 4000 feet in the Great Smoky Mountains the golfing community of Wade Hampton is a luxury North Carolina mountain real estate golf community 65 miles southwest of Asheville
Kruckenberger has a healthy business selling to second-home buyers and retirees and renting many of those homes out to vacationers He said home prices at Wade Hampton range from $700000 for a cottage to $5 million At Sapphire National Golf Club a two-
bedroom condominium sells for $150000 and homes can sell as high as $5 million
ldquoOur area is 90 percent second-home buyersrdquo he said ldquoA good number are retirees Most buyers are out of state Florida is the number one source of buyers in our area They come to escape the heat in Florida and enjoy the cool mountain air We have a good number of buyers from South Carolina and Georgia And Texans are coming in drovesrdquo
Coastal North Carolina Increasingly golf communities offer a country club experience with swimming tennis spas fine dining and waterfront homes Maritime golf real estate resorts abound along North Carolinarsquos Atlantic coast In southeastern North Carolina along the statersquos 300-mile Atlantic coast some top-notch golf resorts await buyers who like seaside second home properties according Vance Young a broker with Intracoastal Realty in Wrightsville Beach NC
Young said coastal golf home buyers are seeking other amenities beside golf
Continued Next Page Wade Hampton Golf Club Cashiers NC
17
MARCH 2015ldquoAs far as general trends I do see and emphasis on location good shopping access to medical care and transportationrdquo said Young a top producer who sold 125 homes last year for $81 million in sales ldquoBuyers are becoming more demanding and more selective These additional amenities have become critically important the last few yearsrdquo
At Landfall a 2200 acre gated development with 1600 homes nestled along the coast near Wrightsville Beach and Figure Eight Island just nine miles northeast of Wilmington NC buyers can enjoy golf homes at the Country Club of Landfall which offers 45 holes of championship golf 27 designed by Jack Nicklaus and 18 crafted by Peter Dye said Young
Young said buyers are attracted by Wilmington NC the riverfront community along Cape Fear River which features a Riverwalk with over 200
restaurants and shops
In Landfall a golf course townhomes start at $300000 and go up to $700000 he said Single family homes range from $500000 to $5 million The closer you are to the beach the more expensive the homes become
ldquoMost of the residents of Landfall mdash 85 to 90 percent mdash are primary residentsrdquo said Young the No 1 ranked broker in Hanover County who specialize in waterfront and golf resort communities of Wrightsville Beach Figure Eight Island and Landfall ldquoBut we also have a large contingent of second-home owners who come largely from the east coast especially Virginia DC New York and New Jerseyrdquo
As American golf enters the second century of existence it faces a supply-and-demand dilemma too many courses and not enough players But in North Carolina golf real estate is soaring like an eagle
Coastal North Carolina Golf Homes
Vance YoungBroker
Intracoastal RealtyWrightsville Beach NC
As far as general trends I do see an emphasis on location good shopping access to medical care
and transportation
Overlooking the second tee of the Jack Nicklaus golf course at the Country Club of Landfall this beautiful four bedroom five bath Landfall NC French Country inspired design home has a pool and is move-in ready Agent Vance Young In-tracoastal Realty Corp (910) 232-8850 httpVanceYoungcom
This Landfall brick home has four bed-rooms and four baths wit 10 foot ceil-ings and 8 foot doors throughout This Steve Dunn built home is walking dis-tance to the Country Club of Landfall Agent Vance Young Intracoastal Re-alty Corp (910) 232-8850 httpVanc-eYoungcom
WHAT 4-bedroom homeHOW MUCH $769000
Built in 2006 this brick home overlooks the Jack Nicklaus Pines 4 fairway in Landfall NC It has three bedrooms and four baths The home features granite kitchen stainless appliances and a five burner gas range Agent Alison Bern-hart Landfall Realty LLC (800) 227-8208 httpwwwlandfallrealtycom
WHAT 3-bedroom houseHOW MUCH $689000
WHAT 4-bedroom homeHOW MUCH $1199900
THREE FOR SALE
18
MARCH 2015BOOK REVIEWThe GM Building New Yorkrsquos Most Sought After PropertyBy Octavio Nuiry Managing Editor
The General Motors Building isnrsquot the most iconic building in New York City Nor is it the tallest or most elegant But something about the glemming 50-story white marble tower that real estate tycoons canrsquot resist
In ldquoThe Liarrsquos Ball The Extraordinary Saga of How One Building Broke the Worldrsquos Toughest Tycoonsrdquo (Wiley 2014) Vicky Ward lifts the veil on New York Cityrsquos cutthroat world of high-stakes real estate shining the
spotlight on the half-century fight to own one of Americarsquos most desired pieces of real estate the General Motors Building on 5th Avenue in Manhattan
The book largely tells the tragic rise-and-fall of flamboyant New York real estate developer Harry Macklowe who in 2003 engineered the biggest real estate transaction in US history when he bought the GM Building for an unprecedented $14 billion in borrowed funds
Not only does Ward chronicle Macklowersquos recklessness but the book also is an entertaining behind the scenes glimpse at a cast of high-powered New York City real estate tycoons who lie cheat steal mdash and sue each other mdash to acquire NYC trophy properties
The colorful book which spans 150 years of New York real estate history not only documents the history of the GM Building
but some of its flowery suitors including the corrupt politician William ldquoBossrdquo Tweed Cecila Banatter the ldquohousewife tycoonrdquo too busy to name her baby Max Rayne the English property developer who snapped up the iconic Savoy-Plaza Hotel (site of the future GM Building) Disque D Deane the unlovable rogue financier Rita Jenrette Harry Macklowe and Donald Trump She shows how grown men mdash and some powerful women mdash behave like children when their toys are taken away from them
Built by General Motors for corporate offices and a show room on the southeast corner of Central Park in 1968 the GM Building is not New Yorkrsquos tallest skyscraper or most beautiful but it is
desirable in the real estate world for its location across from the Plaza Hotel But itrsquos an iconic trophy tower mdash the most expensive office tower in America mdash that occupys an entire city block and has brought out the worst in a string of landlords from Bill Zeckendorf to Harry Macklowe writes Ward General Motors Co later sold the building but maintained a sizeable presence as a tenant for years
The bookrsquos title comes from the annual black tie gala that the Real Estate Board of New York throws itself every January at the Hilton Grand Ballroom
ldquoEvery year toward the end of January around 2000 members of the New York real estate industry gather at the Hilton to celebrate hellip an event affectionately known by its attendees as lsquothe
Liarrsquos Ballrdquo writes Ward ldquoItrsquos rough itrsquos vulgar and itrsquos a riveting showrdquo
Ward is a New York-based British-born investigative journalist and former contributing editor at Vanity Fair
In 1998 Donald Trump teamed up with financial services company Conseco to buy the building for $878 million from GM which relocated back to Detroit Trump cleaned up the white marble
The Liarrsquos BallBy Vicky Ward
(Wiley 240 pages $2995)
Continued Next Page
Every year toward the end of January around 2000 members of the New York
real estate industry gather at the Hilton to celebrate hellip an event affectionately known
by its attendees as lsquothe Liarrsquos Ball Itrsquos rough itrsquos vulgar and
itrsquos a riveting show
Vicky Ward Author
ldquoThe Liarrsquos Ballrdquo
19
MARCH 2015
walls put in new granite floors emblazed his name on the front of the building and raised rents By 2001 Trump had a chance to buy the entire building for $995 million but he hesitatedTrumprsquos loss was Macklowersquos gain In 2003 Macklowe bought the GM Building from Trump and Conseco for a then-record price of $14 billion Soon Macklowe convinced Steve Jobs then CEO of Apple to open a subterranean flagship store with a glass cube in front of the GM Building It opened in 2006 and was a retail success Now the Apple Store is one of New Yorkrsquos major retail locations
ldquoFor four year Macklowe was riding high after his unexpected success with the GM Building where his visionary ideas mdash including the creation of the iconic Apple flagship store in the basement mdash created $1 billion in valuerdquo writes Ward
Soon however Macklowersquos luck ran out
Convinced he could pull off an even bigger deal Macklowe put
the building up as collateral for a $72 billion loan but the market turned and Macklowe lost the GM Building He sold the building for $28 billion in 2008
The $28 billion price tag remains the highest price ever paid for a single office building in the US
Today the General Motors Building is owned by Boston Properties (which controls 60 percent of the ownership) Chinese developer Zhang Xin and Brazilrsquos Safra Group (each owning a 20 percent stake) The latest deal values the property at $34 billionBut not everyone is a fan of the book
Donald Trump told the New York Post that ldquothe book doesnrsquot capture the essence the glamour or excitement of what happenedrdquo On Twitter Trump wrote ldquoJust finished reading a poorly written and very boring book on the GM Buildingrdquo calling Ward a ldquothird rate writerrdquo
The General Motors Building
DOWNLOAD REALTYTRACrsquoS FREE 2014 GUIDE TO SHORT SALES
State Rank
State Default Auction REO Total 1every X HU (rate)
Δ from Jan 2015
Δ from Feb 2014
US Total 31753 45880 24305 101938 1295 -429 -939
14 Alabama 0 1370 312 1682 1295 6555 2359
30 Alaska 60 59 24 143 2144 1917 2222
24 Arizona 0 1216 395 1611 1775 -2076 -2603
41 Arkansas 0 220 158 378 3494 -979 -503
13 California 5029 4301 2208 11538 1190 -793 -1161
26 Colorado 0 888 267 1155 1924 -2539 -1012
31 Connecticut 234 146 309 689 2158 -5238 -5834
8 Delaware 202 171 53 426 957 -819 1123
District of Columbia 5 37 2 44 6780 23846 52857
3 Florida 3576 7373 4844 15793 570 -1496 -3469
17 Georgia 0 1881 1014 2895 1414 1135 -2834
39 Hawaii 61 47 87 195 2678 598 773
5 Idaho 523 185 56 764 877 2797 11105
7 Illinois 2676 1649 1515 5840 906 -1917 -1051
4 Indiana 1225 1270 721 3216 871 1798 2289
21 Iowa 453 210 138 801 1674 6182 -3223
22 Kansas 231 347 139 717 1723 2535 5689
34 Kentucky 102 534 209 845 2284 4322 1544
27 Louisiana 272 444 297 1013 1949 846 -3494
37 Maine 127 86 62 275 2625 -3514 -5150
1 Maryland 1650 1520 1061 4231 564 1010 -087
32 Massachusetts 746 373 156 1275 2203 897 5269
16 Michigan 746 2178 1030 3208 1412 1154 484
40 Minnesota 0 470 315 785 2999 -2758 -1771
45 Mississippi 0 180 57 237 5390 -1350 33091
35 Missouri 0 706 352 1058 2565 -3424 -1314
49 Montana 0 26 19 45 10740 -1818 -2857
44 Nebraska 71 64 42 177 4521 -2063 11325
2 Nevada 1079 609 381 2069 569 687 1184
43 New Hampshire 0 93 53 146 4214 -4983 -6507
6 New Jersey 2283 1293 406 3982 895 -833 -1721
29 New Mexico 253 80 91 424 2128 -921 -1452
25 New York 3251 702 524 4477 1812 416 1948
10 North Carolina 2234 1107 657 3998 1088 053 10020
50 North Dakota 0 3 2 5 64942 6667 6667
9 Ohio 1480 2138 1505 5123 1000 -739 -590
33 Oklahoma 151 402 201 754 2215 2715 -157
12 Oregon 451 689 326 1466 1144 3512 7663
15 Pennsylvania 1299 1915 853 4067 1368 1118 860
42 Rhode Island 0 77 52 129 3585 -5770 -5257
11 South Carolina 872 734 293 1899 1129 717 -1364
47 South Dakota 0 22 24 46 7950 5862 222
23 Tennessee 0 1246 366 1612 1750 -1801 7315
28 Texas 3 3585 1185 4773 2110 1175 -033
20 Utah 173 366 96 635 1557 -2616 -2275
48 Vermont 0 22 12 34 9498 2143 12667
38 Virginia 0 965 315 1280 2642 -2228 -008
18 Washington 88 1316 637 2041 1421 -078 287
46 West Virginia 0 17 100 117 7529 12075 10526
19 Wisconsin 893 474 357 1724 1523 622 -3205
36 Wyoming 0 74 27 101 2604 5538 1744
February 2015 State-by-State Foreclosure Activity Summary
Rank Metro
Housing Units Per
Foreclosure Filing (Rate)
1 Tampa FL 495
2 Miami FL 539
3 Baltimore MD 547
4 Riverside CA 630
5 Chicago IL 721
6 Philadelphia PA 903
7 Washington DC 1113
8 Seattle WA 1213
9 Atlanta GA 1284
10 Los Angeles CA 1316
11 San Diego CA 1335
12 Detroit MI 1356
13 New York NY 1411
14 St Louis MO 1483
15 Phoenix AZ 1733
16 Dallas TX 1799
17 Minneapolis MN 2000
18 Houston TX 2155
19 San Francisco CA 2182
20 Boston MA 2763
TOP 20 Foreclosure rates in the
Nationrsquos 20 largest metros in February 2015
Housing News Report is a monthly publication dedicated to helping investors succeed by providing them with timely and relevant information about the housing market
EXECUTIVE EDITORDaren Blomquist
MANAGING EDITOROctavio Nuiry
WRITERSDaren Blomquist Octavio Nuiry Peter Miller
ART DIRECTIONEunice Seo
CONTACT USPhone 8003069886
LETTERS TO THE EDITORE-mail editorforeclosurenewsreportcomMail Housing News Report 1 Venture Plaza Suite 300 Irvine CA 92691
7
MARCH 2015
MY TAKE By Leonard Kiefer Deputy Chief Economist Freddie Mac
The spring home buying season is underway Between now and the end of June wersquoll see about 40 percent of all home sales for the year So these next few months will essentially tell us whether or not 2015 will be a good or bad year for housing markets
Overall wersquore feeling good about housing In fact we expect the best year for home sales and new home construction since 2007
Here are the top three reasons to be optimistic about housing markets in 2015
High AffordabilityAbout 80 percent of metro markets in the US are affordable based on data through the 4th quarter of 2014 on the three primary drivers of affordability house prices interest rates and income
Letrsquos look at the house price part of the equation first House prices continue to rise across the country but are still about 10 percent below their 2006 peak nationally But peak-to-trough comparison can be misleading as many markets experienced unsustainable highs during the last decade Instead when we look at fundamental drivers like payment-to-income and price-to-rent ratios we see that most markets have home values that are sustainable Of the top 50 metros we track in our Multi-Indicator Market Indexreg (MiMi) only Los Angeles has house prices that are elevated given household incomes and mortgage rates Prices remain attractive in most markets
Prices are especially attractive given that mortgage rates remain low the second affordability driver From January 2014 to January of 2015 mortgage rates fell nearly three-fourths of a percentage point Though rates have rebounded from their lows at the end of January rates are significantly below the level from one
year ago Low interest rates do a lot to help support homebuyer affordability But it is the third component mdash household incomendash that will be the key driver of housing markets Incomes have largely stagnated over the past decade barely rising and after adjusting for inflation actually falling for the median household But there have been glimmers of good news in the most recent jobs report which showed income up 22 percent year-over-year With a pickup in economic growth in the second half of 2014 households may be beginning to see a gradual pickup in wages Moreover improved job prospects have started to drive those in prime working ages 24 to 54 back to the labor force But this will require patience Not only were younger cohorts the hardest hit during the downturn there are also the ones struggling the most to get back on their feet Rising wages and salaries will do much to help propel housing markets forward but the full effects will take time
Spring Home Buying Kicks Off Best Year for Homes Sales in Seven Years
Continued Next Page
SOURCE Freddie Mac
8
MARCH 2015Rising RentsNot only is affordability high but rents have been rising rapidly across the country driven by strong demand nationwide Rents increased an average of 36 percent in 2014 and nearly 11 percent over the last three years With demand rising rapidly given the improved job prospects for younger households and vacancy rates at low levels we expect to see rents rise at or above inflation this year as well This may be the tipping point Many current renters may decide to strike while the iron is hot (mortgage rates are low and home prices not too high) and purchase a home this year
In fact study findings support that many feel it could make financial sense to buy today According to an online survey of over 2000 US adult renters commissioned by Freddie Mac and conducted by Harris Poll in November 2014 of those renters who said that they would ever consider buying a home 39 percent already think buying a home is a better financial option than renting
Expanded Credit AvailabilityBut will financing be available for these prospective homebuyers We believe it will be given the wider credit availability in the market today Even for those renter households hit by rising rents who have been unable to save much for a down payment but have good credit and a good-paying job
Broader access to credit will be driven by a confluence of factors including new products First more certainty for lenders through the enhanced representation and warranty framework will help ease credit overlays and facilitate more lending Second reduced premiums by the Federal Housing Administration will help many prospective first-time homebuyers enter the market with a federally insured loan Finally new 3 percent down mortgage products should help those qualified borrowers who have limited down payment savings buy homes with conventional financing These new products will be especially important for prospective first-time homebuyers that have been sitting on the sidelines According to the National Association of Realtors (NAR) Annual Survey of Home Buyers and Sellers the share of first-time buyers in the market fell to its lowest point in nearly three decades in 2014 mainly because rising rents and repaying student loan debt is making it more difficult to save for a down payment especially for younger adults
Unlike Punxsutawany Phil who predicted six more weeks of winter wersquore much more optimistic about the spring home buying season and home sales overall in 2015 We expect that a rapidly improving labor market income growth and only a gradual increase in mortgage rates will support the best year for home sales and new home construction since 2007 with home sales increasing nearly 4 percent from last year and new home construction up nearly 20 percent
Sources Freddie Mac House Price Index Reis Inc Freddie Mac February Outlook
Leonard Kiefer was appointed to the position of Deputy Chief Economist in December 2012 As the Deputy Chief Economist Kiefer is responsible for primary and secondary mortgage market analysis and research macroeconomic analysis and forecasting Kiefer is also involved in the analysis of policy issues affecting the housing industry
Kiefer joined Freddie Mac in 2009 as a Senior Economist He was previously an assistant professor at Texas Tech University in Lubbock Texas where he conducted research on macroeconomics and monetary policy He has also taught economics at The Ohio State University and finance at George Mason University
Kiefer holds a BA in economics from the University of Kentucky and a PhD from The Ohio State University
84
76
58
46 47 45 46
50
55 54 56
58
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Total Home Sales (Millions) Source NAR CensusHUD Freddie Mac
Forecast
SOURCE Freddie Mac
9
MARCH 2015
Realtor Sentenced to 3 Years in PrisonA Seal Beach Calif real estate agent was sentenced to 3 years in federal prison for operating a $14 million fraud scheme in California that bilked investors who paid money in response to false promises of ownership in commercial real estate according to the US Attorney
Karen Hanover 48 was sentenced by United States District Judge Josephine Staton Judge Staton scheduled a May 8 hearing to determine how much restitution should be paid to approximately 45 victims
Hanover pleaded guilty last year to one count of mail fraud related to the scheme she ran out of two Long Beach companies mdash Commercial Investment Education LLC and Kharmic Life Strategies Inc ldquoFast Trackrdquo investment program to investors who attended seminars in Southern California Dallas and Las Vegas
Victims were induced to invest between $19000 and $29000 in the real estate scam In her pitches Hanover ldquofalsely represented to the lsquoFast Trackersrsquo that she would partner with them in real estate deals they would receive 100 percent returns on their investments and she would provide a 100 percent refund if they did not obtain a commercial property within a yearrdquo according to court documents that noted these promises were false
SOURCE US Attorney
Brokerage Realogy Launches Search PortalMove Inc which is owned by News Corp and operates the NRT the nationrsquos largest residential real estate brokerage has launched a new home search portal mdash HomesForSalecom mdash a national property portal to compete with Zillow Trulia and Move
NRT is the subsidiary of Realogy that operates real estate brokerages under Realogyrsquos Coldwell Banker Coldwell Banker Commercial Sothebyrsquos International Realty and Zip Realty brands It also owns regional brands The Corcoran Group and Citi Habitats NRT has over 42000 agents and operates over 700 offices in the US
SOURCE News Corp
Vanilla Ice Arrested for Alleged BurglaryRapper-turned rehabber Vanilla Ice was arrested Feb 18 2015 for an alleged home burglary in Lantana Fla
The former rapper whose real name is Robert Van Winkle was arrested in Lantana Fla accused of stealing furniture from a neighborrsquos home
According to Lantana police furniture a swimming pool heater and bicycles were found at Van Winklersquos property and later returned to the owner He is currently renovating a home adjacent to the property in which the items were stolen police said
Van Winkle has a home renovation show on the DIY Network ldquoThe Vanilla Ice Projectrdquo where he and a crew refurbish foreclosed or distressed homes around Palm Beach County
SOURCE Sun-Sentinel
Realtor Safety Survey The recent death of a South Florida home shopper gunned down while looking at a home in Fort Lauderdale on February 27 has the real estate industry talking about safety
Despite several tragedies in the residential real estate world over the last few years a new survey from the National Association of Realtors found that 96 percent of Realtors have never been a victim of crime But 40 percent of Realtors have found themselves in situations where they fear for their safety the survey found
The survey found that one-third of the 3000 Realtors surveyed said they carry a self-defense weapon Female Realtors are more likely to carry pepper spray while male Realtors more commonly carry a firearm Many agents 38 percent have participated in self-defense classes and 13 percent use a smart phone safety application to track their whereabouts or alert colleagues of an emergency
SOURCES National Association of Realtors Sun-Sentinel
NEWS BRIEFS
10
MARCH 2015
Trulia Will Lose Listing Data in April The online battle between Move Inc and Zillow Group flared up again
Listing syndicator ListHub will stop supplying listings on April 7 giving the nationrsquos second largest real estate listing site less than a month to find an alternative source for more than a quarter of its listings
On Feb 23 a San Francisco judge granted Trulia Inc a temporary restraining order to keep receiving listings data from ListHub
ListHub mdash which is owned by realtorcom and operated by Move Inc a News Corp subsidiary mdash announced Feb 20 that it had terminated its syndication agreement with Trulia in the wake of its acquisition by Zillow and would stop sending listings to Trulia on Feb 26
According to a copy of Truliarsquos complaint obtained by Inman News Trulia which could lose 25 percent of its listings data filed a 52-page complaint against Move Inc in San Francisco Superior Court claiming breach of contract Judge Ernest H Goldsmith scheduled a March 12 court hearing to determine whether or not to compel Move to abide by the original June 19 2016 termination date of its agreement with Trulia
Both Zillow and Trulia will lose listing information from ListHub when the contract between those two entities expires
SOURCES Inman News Courthouse News
W Va Supreme Court Rules in Favor of MERS On February 5 the Supreme Court of Appeals of West Virginia held that the recording of trust deeds do not have to be recorded at the office of the clerk of the county commission
In State of W Va v Waren McGraw the Court disagreed with Wyoming Countyrsquos claims that the recording of trust deed assignments in county record books is required by state law ldquoin order to clear title to properties in the Countiesrdquo While the Counties did not name MERSCORP Holdings Inc or Mortgage Electronic Registrations Systems Inc (MERS) as a defendant in the case the allegations in the complaint were focused on challenging the operations of MERS and the MERSreg System
In his opinion West Virginia Supreme Court of Appeals Justice Menis E Ketchum II said that ldquorecording statutes in West Virginia do not require that the assignment of a trust deed be recorded in the office of the clerk of the county commissionrdquo
SOURCE W Va v Warren McGraw
MetLife Fined $123M for Bad LoansMetLife will cough up $1235 million to settle claims that it knowingly approved federally insured home loans for people who didnrsquot qualify according to the US Justice Department
As part of the settlement MetLife Home Loans admitted that its predecessor mdash MetLife Bank mdash repeatedly certified for Federal Housing Administration insurance on mortgage loans that didnrsquot meet federal underwriting requirements between 2008 and 2012
Furthermore MetLife admitted that the bank knew a large number of the loans were not eligible for FHA mortgage insurance through its own quality control practices Between 2009 and 2010 the bank discovered that anywhere from 25 to 60 percent of these loans were seriously deficient mdash findings that were regularly shared with the bankrsquos CEO and its directors the Justice Department said
Over a two-year period the bank self-identified 1097 mortgages insured by the FHA that were seriously deficient but only reported 321 of them to the Department of Housing and Urban Development As a result FHA insured hundreds of home loans that werenrsquot eligible mdash causing the agency to suffer serious losses when it later paid insurance claims on the loans
ldquoMetLife Bankrsquos improper FHA lending practices not only wasted taxpayer funds but also inflicted harm on homeowners and the housing market that lasts to this dayrdquo said Acting Assistant Attorney General Joyce R Branda of the Justice Departmentrsquos Civil Division ldquoAs this settlement shows we will continue to hold accountable financial institutions that elected to ignore the rules and to pursue their own financial interests at the expense of hardworking Americansrdquo
SOURCE Justice Department
LEGAL BRIEFS
11
MARCH 2015
Housing Rising Student Loan DebtGrowing student loan debt is weighing down on an already tepid housing market according to fresh data from the New York Federal Reserve Rising student loan debt is shutting out potential buyers A new report from the Federal Reserve shows that student loan debt rose in the fourth quarter of 2014 to a record $116 trillion dollars Thatrsquos 7 percent higher than the year before And delinquencies are rising too with current default rates at more than 11 percent Historically first-time home buyers are people in their 20s and 30s but this same age group is carrying a majority of that $116 trillion in loan debt According to the Fed the rising student loan debt is decreasing both household formation and home ownership Labor market growth and higher wages will help shrink student loan debt according to economists
Rents New York Rents Too HighNew Yorkers are now spending approximtely 60 percent of their income to live in Manhattan according to a new study by the website Streeteasy The median monthly New York rent hit $2700 mdash or more than 58 percent of residentsrsquo median income Residents in Brooklyn pay the highest median rent cost mdash 60 percent Surprisingly Manhattanites arenrsquot the worst off Residents in Brooklyn pay the highest median rent cost mdash 60 percent They are followed by those living in the Bronx at 52 percent Manhattan at 49 percent Queens at 41 percent and Staten Island at 30 percent
Trends Millennials Lead All BuyersThe millennial generation represented the largest share of recent home buyers according to a new report from the National Association of Realtors The 2015 National Association of Realtors ldquoHome Buyer and Seller Generational Trends Reportrdquo found that an overwhelming majority of buyers search for homes online and then purchase their home through a real estate agent with millennials also known as Gen Y using agents the most With millennials entering the peak buying period and expected to soon surpass boomers in total population the NAR believes the share of millennial purchases would be higher if not for the numerous obstacles that have slowed their journey to homeownership
Study Consumer Confidence Grows Consumer optimism toward the economy is growing and appears to be contributing to further improvement in overall housing sentiment according to Fannie Maersquos National Housing Survey Most consumers expect home rental prices to continue to rise in the next year but 43 percent still think it is too difficult to get a mortgage the survey found The share of respondents who believe the economy is headed in the right direction increased 3 percentage points in February to an all-time survey high of 47 percent while the those who believe it is headed in the wrong direction decreased to 45 percent a new survey low ldquoWe continue to see strength in attitudes about the current home buying and selling environment and consistently high shares of consumers saying they expect to buy a home on their next moverdquo said Doug Duncan senior vice president and chief economist at Fannie Mae
Tech Smart Homes Sell Faster As smart home technology plays a larger role in real estate Coldwell Banker Real Estate LLC recently released a survey uncovering what smart features home buyers are looking for when purchasing a home and how those features impact a home sale Coldwell Banker also published a list of 25 smart home products and systems in the categories that matter most to buyers A survey of 500 Coldwell sales associates found that 62 percent of buyers want to control their home from their smart phone or tablet One third (33 percent) said that homes with smart home technology sell faster than homes without them Gen X (age 35-49) is the ldquosmartestrdquo generation of home buyers interested in smart home technology today the survey found
Study Remodeling RecoveryThe $300 billion US home improvement industry is faring much better than the broader housing market according to a new report from the Joint Center for Housing Studies of Harvard University ldquoEmerging Trends in the Remodeling Marketrdquo is the latest in the Improving Americarsquos Housing series published by the Joint Center While new home construction is many years away from full recovery the Center reports that Americarsquos home improvement industry could post record-level spending in 2015 with kitchen and bath upgrades leading the way
FINANCIAL BRIEFS
12
MARCH 2015
By Octavio Nuiry Managing Editor
North Carolina Teeing Up Real Estate in the Tar Heel State
In the game of golf an eagle mdash two strokes under par mdash is good news
In the real estate game buying a home located on a golf course is like sinking a housing eagle Not only do you waking up every morning to the possibility of golfing every day but many golf communities are attractive to buyers because of their safety beauty and quality of life
In 2013 Americans bought 717000 vacation homes up 30 percent from a year earlier and proximity to a golf course was a decisive factor for a third of the buyers according to the National Association of Realtorsrsquo 2014 Investment and Vacation Buyers Survey The median price of a vacation home in 2013 was $168700 up 125 percent from 2012
In the Tar Heel State golf and real estate are frequently tied together In North Carolina the vast geographical diversity provides golf home buyers with a wide choice of locations whether coastal inland or mountain From the shores of the Outer Banks to the rolling hills of the Black Mountains golf courses pepper the statersquos landscape Nearly 50 years after Hilton Head Island SC ushered in the first master-planned golf home community North Carolina is slowly recovering from the housing downturn
According to David Lott publisher and founder of Golfcoursehomenet golf communities were hit hard during the recent housing downturn Lott said since the recession the number of courses closing has outnumbered the courses opening He said North Carolina golf communities are slowly rebounding Golf communities in the remote western mountains
Continued Next Page
STATE SPOTLIGHT
Where Most of the Properties Come With a Club Membership AttachedTHREE FOR SALE
Resort community living at its finest in this beautiful all brick three bedroom home on a private wooded lot with wa-ter views and transferable Pinehurst Country Club membership (the buyer pays half initiation fee to join) Agent Sue Boynton Pinehurst Resort Realty (704) 564-8139 wwwpinehurstresort-realtycom
Built in 2006 this brick home on the 18th fairway of the Beacon Ridge golf course has four bedrooms and three baths Club membership attached Agent Dawn Crawley Pinehurst Resort Realty (910) 783-7993 wwwpinehurstresortre-altycom
Located on Pinehurst No 2 golf course this home has four bedrooms and five baths and is walking distance to the His-toric Village of Pinehurst The home is located in Pinehurstrsquos prestigious gated community Fairwoods 7 Agent Marga-ret Chirichingo Pinehurst Resort Realty (704) 564-8139 wwwpinehurstresortre-altycom
WHAT 3-bedroom homeHOW MUCH $225000
WHAT 4-bedroom houseHOW MUCH $399000
WHAT 4-bedroom homeHOW MUCH $1499000
13
MARCH 2015
of North Carolina were hit hardest Lott said
ldquoThe recovery started on the shores of the Atlantic and is slowly working its way inlandrdquo said Lott a former reporter for Golf Digest referring to the westward movement of North Carolinarsquos golf real estate recovery ldquoThe pace of the recovery is going to be different in the various geographical areas The mountain areas are still having the most troublerdquo
During the recent real estate boom developers and home buyers believed residential golf communities were a sure-fire bet Many buyers purchased properties to flip for a quick profit Others were lured for the country club amenities stunning views and security of the gated communities While there are no reliable data on the growth of master-planned golf communities real estate brokers and market analysts say the market is slowly recovering
Clearly the recession of 2008 sliced the growth of golf communities into the rough According to the National Golf Foundation only 14 new courses opened in the United States in 2014 the fewest in 25 years while almost 160 of the countryrsquos 14600 18-hole golf facilities shut down Last year marked the eight straight year that more courses closed than opened
Pinehurst Central North Carolina At Pinehurst (No 2) the luxurious golferrsquos resort in the arid sand hills of south-central North Carolina housing prices remain comparatively reasonable considering that most of the property in Pinehurst comes with a membership to Pinehurst Country Club Pinehurst and its surrounding communities mdash known locally as ldquothe Sandhillsrdquo mdash is located in Moore County Pinehurst is transiting from a playground for retirees into a younger family-friendly resort according to Sue Boynton an associate broker with Pinehurst Resort Realty in Pinehurst NC
ldquoA lot of the buyers here in Pinehurst are from the northeastrdquo said Boynton an avid golfer who lives in the Doral Woods golf community in Pinehurst ldquoBut there are a lot from Charlotte toordquo
As one of the countryrsquos first golf resorts Pinehurst is viewed as the cradle of the sport Pinehurst which ranks 16th on Golf Magazinersquos list of Top 100 Courses in the World is located 60 miles southwest of Raleigh No golf community in America is as rich in golf history as Pinehurst which is home to 42 golf courses many of them world renowned Last year for example the 120-year old Pinehurst resort hosted two of golfrsquos greatest stateside productions mdash the US Menrsquos Open and the Womenrsquos Open Golfers Vickie and David Bowles who purchased a historic home on the tee box of hole 5 on Pinehurst (No 2) in 2013 said they enjoy the layback atmosphere of the Pinehurst Village ldquoOne thing I love about Pinehurst is that I get to spend time with my husbandrdquo said Vickie Bowles referring to time together on the links with her husband David ldquoI had to learn golf and he had to
learn how to snow ski The weather is exceptional and the wersquore close to the mountains and the beaches of North Carolinardquo Built in 1895 on 5500 acres of the Sandhills region of North Carolina the Village of Pinehurst was originally developed as a health resort for patients recovering from tuberculosis As the popularity of North Carolina has surged so have real estate prices Home sites of $600000 are common And homes priced above $5 million donrsquot turn heads Boynton said She said most of the Pinehurst properties come with a membership to the Pinehurst Country Club Property ownership is the only requirement for membership said Bowles
ldquoPinehurst Resort is uniquerdquo said Boynton ldquoIf somebody loves golf Pinehurst is the place to be Itrsquos becoming a neighborhood-friendly community It is
Continued Next Page
David LottFounderPublisher
GolfCourseHomecom Vineyard Haven Mass
The recovery started on the shores of the Atlantic and is slowly
working its way inland The pace of the recovery is going to be different in the various geographical areas The
mountain areas are still having the most
trouble
14
MARCH 2015
increasingly transitioning to younger familiesrdquo
To become a member of the Pinehurst Country Club you have to own property in Pinehurst said Boynton Pinehurst home buyers are required to pay a $12500 transfer fee which is often included in the purchase price and $381 in monthly dues
ldquoPeople are still buyingrdquo said Boynton citing that people from all over the world come to Pinehurst and nearby Southern Pines to play golf and ride horses The area is rural with horse properties and farms Increasingly she said non-golfers are buying in golf communities
According to a survey conducted by Better Homes and Gardens Real Estate 57 percent of baby boomers say they plan to move to a new home in retirement When asked which type of community they were likely to choose 39 percent said a small town like Pinehurst or a rural community The next choice was a 55-and-older community (27 percent) followed by urban living (26 percent) and 25 percent said they would buy a second home such as a vacation beach house or a golf course community
Golf went mainstream in America in the 1890s according to Richard J Moss author of ldquoThe Kingdom of Golf in Americardquo a rich and colorful history of the sport Its popularity and its fortune has waxed and waned in response to larger economic events As America prospered in the 20th century public courses opened alongside private clubs and exposed more people to the sport Between 1992 and 2001
at least 60 percent of new golf courses were tied to property developments writes Moss Golf courses increase the value of surrounding homes and developers built long complicated courses with the hope of attracting tournaments and selling more homes
Moss points out that golf and real estate deals have always been connected Nationwide approximately 60 percent of golf courses are linked to real estate development claims Moss Courses came to be designed with premium-priced houses bordering fairways similar to houses bordering beaches
Moss believes that neither the recession nor the eclipse of its brightest star can stymie professional golf Today according to Moss there are roughly 16000 golf courses in America half or more of the golf courses in the world Average prize money for a PGA Tour event doubled between 2000 and 2010 from $33 million to $6 million reports
Continued Next Page
If somebody loves golf Pinehurst is the place to be Itrsquos becoming a
neighborhood-friendly community It is
increasingly transitioning to younger families
Sue BoyntonAssociate Broker
Pinehurst Resort Realty Pinehurst NC
Pinehurst Resort amp Country Club - No 4 Pinehurst NC
15
MARCH 2015
the Economist In 2014 professional golfers were some of the highest paid athletes in America Phil Mickelson the amiable left-hander ranked 6th nationwide making $37 million according to Fortune Magazine Tiger Woods despite his back problems and not winning a major tournament since 2008 ranked 7th pulling in $35 million
According to the latest list of Golf Digestrsquos top 100 public and private golf courses in the US five North Carolina courses make the cut Leading the list is Tom Fazio-designed Wade Hampton Gold Club in Cashiers NC Pinehurst No 2 was the next highest course ranked on the list coming in at 28 on the list Rounding out the top five are all Fazio designs including Mountain Golf and Lake Club in Cashiers (No 78) Eagle Point Golf Club in Wilmington (No 89) and Diamond Creek Golf Club in Banner Elk (No 94)
Western North Carolina In the mile-high mountains of western North Carolina some of the best golf real estate is found atop the famed Blue Ridge Mountains the tallest peaks of the eastern United States
ldquoOur area is considered the worldrsquos premier mountain golf mecca with two of the top three mountain golf clubs in the world Wade Hampton Golf Club and Mountaintop Golf and Lake Clubrdquo said Bill Kruckenberger brokerowner of Sapphire Valley Real Estate in Sapphire NC ldquoBoth are Fazio courses also considered to be in the top 100 courses worldwide There are a ton of high-end mountain golf courses on our very small mountain plateau (including Bobby Jones summer club Highlands Country Clubrdquo
Kruckenberger knows a thing or two about golf Although hersquos not a golfer he sold the arearsquos public golf course Sapphire National Golf Club not once mdashbut twice
Continued Next Page
Bill KruckenbergerBrokerOwner
Sapphire Valley Real Estate
Sapphire NC
Our area is considered the worldrsquos premier mountain golf mecca with two of the
top three mountain golf clubs in the world
Perched 4400 feet atop the Blue Ridge Mountains buyers can enjoy big moun-tain views from this three bedroom and 3 bath Sapphire Valley Resort home Membership in the Sapphire National Golf Club is included Agent Bill Kruck-enberger Sapphire Valley Real Estate (828) 506-8398 httpwwwsapphirev-alleypropertiescom
WHAT 3-bedroom homeHOW MUCH $585000
This custom golf community home has five bedrooms and three baths Located minutes from Asheville this home is a golfers dream Agent Jeff Stewart Keller Williams Professionals (828) 337-8837 httpwwwbrokerjeffnet
WHAT 5-bedroom houseHOW MUCH $484900
Located on Wade Hamptonrsquos 8 fairway this two-story home has five bedrooms and seven baths and is walking dis-tance to the clubhouse This golf-front mountain home is located in township of Cashiers NC in a prestigious gated community Agent Bill Kruckenberger Sapphire Valley Real Estate (828) 506-8398 httpwwwsapphirevalleyproper-tiescom
WHAT 5-bedroom homeHOW MUCH $2975000
THREE FOR SALE Western North Carolina Golf Homes
16
MARCH 2015Nestled 4000 feet in the Great Smoky Mountains the golfing community of Wade Hampton is a luxury North Carolina mountain real estate golf community 65 miles southwest of Asheville
Kruckenberger has a healthy business selling to second-home buyers and retirees and renting many of those homes out to vacationers He said home prices at Wade Hampton range from $700000 for a cottage to $5 million At Sapphire National Golf Club a two-
bedroom condominium sells for $150000 and homes can sell as high as $5 million
ldquoOur area is 90 percent second-home buyersrdquo he said ldquoA good number are retirees Most buyers are out of state Florida is the number one source of buyers in our area They come to escape the heat in Florida and enjoy the cool mountain air We have a good number of buyers from South Carolina and Georgia And Texans are coming in drovesrdquo
Coastal North Carolina Increasingly golf communities offer a country club experience with swimming tennis spas fine dining and waterfront homes Maritime golf real estate resorts abound along North Carolinarsquos Atlantic coast In southeastern North Carolina along the statersquos 300-mile Atlantic coast some top-notch golf resorts await buyers who like seaside second home properties according Vance Young a broker with Intracoastal Realty in Wrightsville Beach NC
Young said coastal golf home buyers are seeking other amenities beside golf
Continued Next Page Wade Hampton Golf Club Cashiers NC
17
MARCH 2015ldquoAs far as general trends I do see and emphasis on location good shopping access to medical care and transportationrdquo said Young a top producer who sold 125 homes last year for $81 million in sales ldquoBuyers are becoming more demanding and more selective These additional amenities have become critically important the last few yearsrdquo
At Landfall a 2200 acre gated development with 1600 homes nestled along the coast near Wrightsville Beach and Figure Eight Island just nine miles northeast of Wilmington NC buyers can enjoy golf homes at the Country Club of Landfall which offers 45 holes of championship golf 27 designed by Jack Nicklaus and 18 crafted by Peter Dye said Young
Young said buyers are attracted by Wilmington NC the riverfront community along Cape Fear River which features a Riverwalk with over 200
restaurants and shops
In Landfall a golf course townhomes start at $300000 and go up to $700000 he said Single family homes range from $500000 to $5 million The closer you are to the beach the more expensive the homes become
ldquoMost of the residents of Landfall mdash 85 to 90 percent mdash are primary residentsrdquo said Young the No 1 ranked broker in Hanover County who specialize in waterfront and golf resort communities of Wrightsville Beach Figure Eight Island and Landfall ldquoBut we also have a large contingent of second-home owners who come largely from the east coast especially Virginia DC New York and New Jerseyrdquo
As American golf enters the second century of existence it faces a supply-and-demand dilemma too many courses and not enough players But in North Carolina golf real estate is soaring like an eagle
Coastal North Carolina Golf Homes
Vance YoungBroker
Intracoastal RealtyWrightsville Beach NC
As far as general trends I do see an emphasis on location good shopping access to medical care
and transportation
Overlooking the second tee of the Jack Nicklaus golf course at the Country Club of Landfall this beautiful four bedroom five bath Landfall NC French Country inspired design home has a pool and is move-in ready Agent Vance Young In-tracoastal Realty Corp (910) 232-8850 httpVanceYoungcom
This Landfall brick home has four bed-rooms and four baths wit 10 foot ceil-ings and 8 foot doors throughout This Steve Dunn built home is walking dis-tance to the Country Club of Landfall Agent Vance Young Intracoastal Re-alty Corp (910) 232-8850 httpVanc-eYoungcom
WHAT 4-bedroom homeHOW MUCH $769000
Built in 2006 this brick home overlooks the Jack Nicklaus Pines 4 fairway in Landfall NC It has three bedrooms and four baths The home features granite kitchen stainless appliances and a five burner gas range Agent Alison Bern-hart Landfall Realty LLC (800) 227-8208 httpwwwlandfallrealtycom
WHAT 3-bedroom houseHOW MUCH $689000
WHAT 4-bedroom homeHOW MUCH $1199900
THREE FOR SALE
18
MARCH 2015BOOK REVIEWThe GM Building New Yorkrsquos Most Sought After PropertyBy Octavio Nuiry Managing Editor
The General Motors Building isnrsquot the most iconic building in New York City Nor is it the tallest or most elegant But something about the glemming 50-story white marble tower that real estate tycoons canrsquot resist
In ldquoThe Liarrsquos Ball The Extraordinary Saga of How One Building Broke the Worldrsquos Toughest Tycoonsrdquo (Wiley 2014) Vicky Ward lifts the veil on New York Cityrsquos cutthroat world of high-stakes real estate shining the
spotlight on the half-century fight to own one of Americarsquos most desired pieces of real estate the General Motors Building on 5th Avenue in Manhattan
The book largely tells the tragic rise-and-fall of flamboyant New York real estate developer Harry Macklowe who in 2003 engineered the biggest real estate transaction in US history when he bought the GM Building for an unprecedented $14 billion in borrowed funds
Not only does Ward chronicle Macklowersquos recklessness but the book also is an entertaining behind the scenes glimpse at a cast of high-powered New York City real estate tycoons who lie cheat steal mdash and sue each other mdash to acquire NYC trophy properties
The colorful book which spans 150 years of New York real estate history not only documents the history of the GM Building
but some of its flowery suitors including the corrupt politician William ldquoBossrdquo Tweed Cecila Banatter the ldquohousewife tycoonrdquo too busy to name her baby Max Rayne the English property developer who snapped up the iconic Savoy-Plaza Hotel (site of the future GM Building) Disque D Deane the unlovable rogue financier Rita Jenrette Harry Macklowe and Donald Trump She shows how grown men mdash and some powerful women mdash behave like children when their toys are taken away from them
Built by General Motors for corporate offices and a show room on the southeast corner of Central Park in 1968 the GM Building is not New Yorkrsquos tallest skyscraper or most beautiful but it is
desirable in the real estate world for its location across from the Plaza Hotel But itrsquos an iconic trophy tower mdash the most expensive office tower in America mdash that occupys an entire city block and has brought out the worst in a string of landlords from Bill Zeckendorf to Harry Macklowe writes Ward General Motors Co later sold the building but maintained a sizeable presence as a tenant for years
The bookrsquos title comes from the annual black tie gala that the Real Estate Board of New York throws itself every January at the Hilton Grand Ballroom
ldquoEvery year toward the end of January around 2000 members of the New York real estate industry gather at the Hilton to celebrate hellip an event affectionately known by its attendees as lsquothe
Liarrsquos Ballrdquo writes Ward ldquoItrsquos rough itrsquos vulgar and itrsquos a riveting showrdquo
Ward is a New York-based British-born investigative journalist and former contributing editor at Vanity Fair
In 1998 Donald Trump teamed up with financial services company Conseco to buy the building for $878 million from GM which relocated back to Detroit Trump cleaned up the white marble
The Liarrsquos BallBy Vicky Ward
(Wiley 240 pages $2995)
Continued Next Page
Every year toward the end of January around 2000 members of the New York
real estate industry gather at the Hilton to celebrate hellip an event affectionately known
by its attendees as lsquothe Liarrsquos Ball Itrsquos rough itrsquos vulgar and
itrsquos a riveting show
Vicky Ward Author
ldquoThe Liarrsquos Ballrdquo
19
MARCH 2015
walls put in new granite floors emblazed his name on the front of the building and raised rents By 2001 Trump had a chance to buy the entire building for $995 million but he hesitatedTrumprsquos loss was Macklowersquos gain In 2003 Macklowe bought the GM Building from Trump and Conseco for a then-record price of $14 billion Soon Macklowe convinced Steve Jobs then CEO of Apple to open a subterranean flagship store with a glass cube in front of the GM Building It opened in 2006 and was a retail success Now the Apple Store is one of New Yorkrsquos major retail locations
ldquoFor four year Macklowe was riding high after his unexpected success with the GM Building where his visionary ideas mdash including the creation of the iconic Apple flagship store in the basement mdash created $1 billion in valuerdquo writes Ward
Soon however Macklowersquos luck ran out
Convinced he could pull off an even bigger deal Macklowe put
the building up as collateral for a $72 billion loan but the market turned and Macklowe lost the GM Building He sold the building for $28 billion in 2008
The $28 billion price tag remains the highest price ever paid for a single office building in the US
Today the General Motors Building is owned by Boston Properties (which controls 60 percent of the ownership) Chinese developer Zhang Xin and Brazilrsquos Safra Group (each owning a 20 percent stake) The latest deal values the property at $34 billionBut not everyone is a fan of the book
Donald Trump told the New York Post that ldquothe book doesnrsquot capture the essence the glamour or excitement of what happenedrdquo On Twitter Trump wrote ldquoJust finished reading a poorly written and very boring book on the GM Buildingrdquo calling Ward a ldquothird rate writerrdquo
The General Motors Building
DOWNLOAD REALTYTRACrsquoS FREE 2014 GUIDE TO SHORT SALES
State Rank
State Default Auction REO Total 1every X HU (rate)
Δ from Jan 2015
Δ from Feb 2014
US Total 31753 45880 24305 101938 1295 -429 -939
14 Alabama 0 1370 312 1682 1295 6555 2359
30 Alaska 60 59 24 143 2144 1917 2222
24 Arizona 0 1216 395 1611 1775 -2076 -2603
41 Arkansas 0 220 158 378 3494 -979 -503
13 California 5029 4301 2208 11538 1190 -793 -1161
26 Colorado 0 888 267 1155 1924 -2539 -1012
31 Connecticut 234 146 309 689 2158 -5238 -5834
8 Delaware 202 171 53 426 957 -819 1123
District of Columbia 5 37 2 44 6780 23846 52857
3 Florida 3576 7373 4844 15793 570 -1496 -3469
17 Georgia 0 1881 1014 2895 1414 1135 -2834
39 Hawaii 61 47 87 195 2678 598 773
5 Idaho 523 185 56 764 877 2797 11105
7 Illinois 2676 1649 1515 5840 906 -1917 -1051
4 Indiana 1225 1270 721 3216 871 1798 2289
21 Iowa 453 210 138 801 1674 6182 -3223
22 Kansas 231 347 139 717 1723 2535 5689
34 Kentucky 102 534 209 845 2284 4322 1544
27 Louisiana 272 444 297 1013 1949 846 -3494
37 Maine 127 86 62 275 2625 -3514 -5150
1 Maryland 1650 1520 1061 4231 564 1010 -087
32 Massachusetts 746 373 156 1275 2203 897 5269
16 Michigan 746 2178 1030 3208 1412 1154 484
40 Minnesota 0 470 315 785 2999 -2758 -1771
45 Mississippi 0 180 57 237 5390 -1350 33091
35 Missouri 0 706 352 1058 2565 -3424 -1314
49 Montana 0 26 19 45 10740 -1818 -2857
44 Nebraska 71 64 42 177 4521 -2063 11325
2 Nevada 1079 609 381 2069 569 687 1184
43 New Hampshire 0 93 53 146 4214 -4983 -6507
6 New Jersey 2283 1293 406 3982 895 -833 -1721
29 New Mexico 253 80 91 424 2128 -921 -1452
25 New York 3251 702 524 4477 1812 416 1948
10 North Carolina 2234 1107 657 3998 1088 053 10020
50 North Dakota 0 3 2 5 64942 6667 6667
9 Ohio 1480 2138 1505 5123 1000 -739 -590
33 Oklahoma 151 402 201 754 2215 2715 -157
12 Oregon 451 689 326 1466 1144 3512 7663
15 Pennsylvania 1299 1915 853 4067 1368 1118 860
42 Rhode Island 0 77 52 129 3585 -5770 -5257
11 South Carolina 872 734 293 1899 1129 717 -1364
47 South Dakota 0 22 24 46 7950 5862 222
23 Tennessee 0 1246 366 1612 1750 -1801 7315
28 Texas 3 3585 1185 4773 2110 1175 -033
20 Utah 173 366 96 635 1557 -2616 -2275
48 Vermont 0 22 12 34 9498 2143 12667
38 Virginia 0 965 315 1280 2642 -2228 -008
18 Washington 88 1316 637 2041 1421 -078 287
46 West Virginia 0 17 100 117 7529 12075 10526
19 Wisconsin 893 474 357 1724 1523 622 -3205
36 Wyoming 0 74 27 101 2604 5538 1744
February 2015 State-by-State Foreclosure Activity Summary
Rank Metro
Housing Units Per
Foreclosure Filing (Rate)
1 Tampa FL 495
2 Miami FL 539
3 Baltimore MD 547
4 Riverside CA 630
5 Chicago IL 721
6 Philadelphia PA 903
7 Washington DC 1113
8 Seattle WA 1213
9 Atlanta GA 1284
10 Los Angeles CA 1316
11 San Diego CA 1335
12 Detroit MI 1356
13 New York NY 1411
14 St Louis MO 1483
15 Phoenix AZ 1733
16 Dallas TX 1799
17 Minneapolis MN 2000
18 Houston TX 2155
19 San Francisco CA 2182
20 Boston MA 2763
TOP 20 Foreclosure rates in the
Nationrsquos 20 largest metros in February 2015
Housing News Report is a monthly publication dedicated to helping investors succeed by providing them with timely and relevant information about the housing market
EXECUTIVE EDITORDaren Blomquist
MANAGING EDITOROctavio Nuiry
WRITERSDaren Blomquist Octavio Nuiry Peter Miller
ART DIRECTIONEunice Seo
CONTACT USPhone 8003069886
LETTERS TO THE EDITORE-mail editorforeclosurenewsreportcomMail Housing News Report 1 Venture Plaza Suite 300 Irvine CA 92691
8
MARCH 2015Rising RentsNot only is affordability high but rents have been rising rapidly across the country driven by strong demand nationwide Rents increased an average of 36 percent in 2014 and nearly 11 percent over the last three years With demand rising rapidly given the improved job prospects for younger households and vacancy rates at low levels we expect to see rents rise at or above inflation this year as well This may be the tipping point Many current renters may decide to strike while the iron is hot (mortgage rates are low and home prices not too high) and purchase a home this year
In fact study findings support that many feel it could make financial sense to buy today According to an online survey of over 2000 US adult renters commissioned by Freddie Mac and conducted by Harris Poll in November 2014 of those renters who said that they would ever consider buying a home 39 percent already think buying a home is a better financial option than renting
Expanded Credit AvailabilityBut will financing be available for these prospective homebuyers We believe it will be given the wider credit availability in the market today Even for those renter households hit by rising rents who have been unable to save much for a down payment but have good credit and a good-paying job
Broader access to credit will be driven by a confluence of factors including new products First more certainty for lenders through the enhanced representation and warranty framework will help ease credit overlays and facilitate more lending Second reduced premiums by the Federal Housing Administration will help many prospective first-time homebuyers enter the market with a federally insured loan Finally new 3 percent down mortgage products should help those qualified borrowers who have limited down payment savings buy homes with conventional financing These new products will be especially important for prospective first-time homebuyers that have been sitting on the sidelines According to the National Association of Realtors (NAR) Annual Survey of Home Buyers and Sellers the share of first-time buyers in the market fell to its lowest point in nearly three decades in 2014 mainly because rising rents and repaying student loan debt is making it more difficult to save for a down payment especially for younger adults
Unlike Punxsutawany Phil who predicted six more weeks of winter wersquore much more optimistic about the spring home buying season and home sales overall in 2015 We expect that a rapidly improving labor market income growth and only a gradual increase in mortgage rates will support the best year for home sales and new home construction since 2007 with home sales increasing nearly 4 percent from last year and new home construction up nearly 20 percent
Sources Freddie Mac House Price Index Reis Inc Freddie Mac February Outlook
Leonard Kiefer was appointed to the position of Deputy Chief Economist in December 2012 As the Deputy Chief Economist Kiefer is responsible for primary and secondary mortgage market analysis and research macroeconomic analysis and forecasting Kiefer is also involved in the analysis of policy issues affecting the housing industry
Kiefer joined Freddie Mac in 2009 as a Senior Economist He was previously an assistant professor at Texas Tech University in Lubbock Texas where he conducted research on macroeconomics and monetary policy He has also taught economics at The Ohio State University and finance at George Mason University
Kiefer holds a BA in economics from the University of Kentucky and a PhD from The Ohio State University
84
76
58
46 47 45 46
50
55 54 56
58
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Total Home Sales (Millions) Source NAR CensusHUD Freddie Mac
Forecast
SOURCE Freddie Mac
9
MARCH 2015
Realtor Sentenced to 3 Years in PrisonA Seal Beach Calif real estate agent was sentenced to 3 years in federal prison for operating a $14 million fraud scheme in California that bilked investors who paid money in response to false promises of ownership in commercial real estate according to the US Attorney
Karen Hanover 48 was sentenced by United States District Judge Josephine Staton Judge Staton scheduled a May 8 hearing to determine how much restitution should be paid to approximately 45 victims
Hanover pleaded guilty last year to one count of mail fraud related to the scheme she ran out of two Long Beach companies mdash Commercial Investment Education LLC and Kharmic Life Strategies Inc ldquoFast Trackrdquo investment program to investors who attended seminars in Southern California Dallas and Las Vegas
Victims were induced to invest between $19000 and $29000 in the real estate scam In her pitches Hanover ldquofalsely represented to the lsquoFast Trackersrsquo that she would partner with them in real estate deals they would receive 100 percent returns on their investments and she would provide a 100 percent refund if they did not obtain a commercial property within a yearrdquo according to court documents that noted these promises were false
SOURCE US Attorney
Brokerage Realogy Launches Search PortalMove Inc which is owned by News Corp and operates the NRT the nationrsquos largest residential real estate brokerage has launched a new home search portal mdash HomesForSalecom mdash a national property portal to compete with Zillow Trulia and Move
NRT is the subsidiary of Realogy that operates real estate brokerages under Realogyrsquos Coldwell Banker Coldwell Banker Commercial Sothebyrsquos International Realty and Zip Realty brands It also owns regional brands The Corcoran Group and Citi Habitats NRT has over 42000 agents and operates over 700 offices in the US
SOURCE News Corp
Vanilla Ice Arrested for Alleged BurglaryRapper-turned rehabber Vanilla Ice was arrested Feb 18 2015 for an alleged home burglary in Lantana Fla
The former rapper whose real name is Robert Van Winkle was arrested in Lantana Fla accused of stealing furniture from a neighborrsquos home
According to Lantana police furniture a swimming pool heater and bicycles were found at Van Winklersquos property and later returned to the owner He is currently renovating a home adjacent to the property in which the items were stolen police said
Van Winkle has a home renovation show on the DIY Network ldquoThe Vanilla Ice Projectrdquo where he and a crew refurbish foreclosed or distressed homes around Palm Beach County
SOURCE Sun-Sentinel
Realtor Safety Survey The recent death of a South Florida home shopper gunned down while looking at a home in Fort Lauderdale on February 27 has the real estate industry talking about safety
Despite several tragedies in the residential real estate world over the last few years a new survey from the National Association of Realtors found that 96 percent of Realtors have never been a victim of crime But 40 percent of Realtors have found themselves in situations where they fear for their safety the survey found
The survey found that one-third of the 3000 Realtors surveyed said they carry a self-defense weapon Female Realtors are more likely to carry pepper spray while male Realtors more commonly carry a firearm Many agents 38 percent have participated in self-defense classes and 13 percent use a smart phone safety application to track their whereabouts or alert colleagues of an emergency
SOURCES National Association of Realtors Sun-Sentinel
NEWS BRIEFS
10
MARCH 2015
Trulia Will Lose Listing Data in April The online battle between Move Inc and Zillow Group flared up again
Listing syndicator ListHub will stop supplying listings on April 7 giving the nationrsquos second largest real estate listing site less than a month to find an alternative source for more than a quarter of its listings
On Feb 23 a San Francisco judge granted Trulia Inc a temporary restraining order to keep receiving listings data from ListHub
ListHub mdash which is owned by realtorcom and operated by Move Inc a News Corp subsidiary mdash announced Feb 20 that it had terminated its syndication agreement with Trulia in the wake of its acquisition by Zillow and would stop sending listings to Trulia on Feb 26
According to a copy of Truliarsquos complaint obtained by Inman News Trulia which could lose 25 percent of its listings data filed a 52-page complaint against Move Inc in San Francisco Superior Court claiming breach of contract Judge Ernest H Goldsmith scheduled a March 12 court hearing to determine whether or not to compel Move to abide by the original June 19 2016 termination date of its agreement with Trulia
Both Zillow and Trulia will lose listing information from ListHub when the contract between those two entities expires
SOURCES Inman News Courthouse News
W Va Supreme Court Rules in Favor of MERS On February 5 the Supreme Court of Appeals of West Virginia held that the recording of trust deeds do not have to be recorded at the office of the clerk of the county commission
In State of W Va v Waren McGraw the Court disagreed with Wyoming Countyrsquos claims that the recording of trust deed assignments in county record books is required by state law ldquoin order to clear title to properties in the Countiesrdquo While the Counties did not name MERSCORP Holdings Inc or Mortgage Electronic Registrations Systems Inc (MERS) as a defendant in the case the allegations in the complaint were focused on challenging the operations of MERS and the MERSreg System
In his opinion West Virginia Supreme Court of Appeals Justice Menis E Ketchum II said that ldquorecording statutes in West Virginia do not require that the assignment of a trust deed be recorded in the office of the clerk of the county commissionrdquo
SOURCE W Va v Warren McGraw
MetLife Fined $123M for Bad LoansMetLife will cough up $1235 million to settle claims that it knowingly approved federally insured home loans for people who didnrsquot qualify according to the US Justice Department
As part of the settlement MetLife Home Loans admitted that its predecessor mdash MetLife Bank mdash repeatedly certified for Federal Housing Administration insurance on mortgage loans that didnrsquot meet federal underwriting requirements between 2008 and 2012
Furthermore MetLife admitted that the bank knew a large number of the loans were not eligible for FHA mortgage insurance through its own quality control practices Between 2009 and 2010 the bank discovered that anywhere from 25 to 60 percent of these loans were seriously deficient mdash findings that were regularly shared with the bankrsquos CEO and its directors the Justice Department said
Over a two-year period the bank self-identified 1097 mortgages insured by the FHA that were seriously deficient but only reported 321 of them to the Department of Housing and Urban Development As a result FHA insured hundreds of home loans that werenrsquot eligible mdash causing the agency to suffer serious losses when it later paid insurance claims on the loans
ldquoMetLife Bankrsquos improper FHA lending practices not only wasted taxpayer funds but also inflicted harm on homeowners and the housing market that lasts to this dayrdquo said Acting Assistant Attorney General Joyce R Branda of the Justice Departmentrsquos Civil Division ldquoAs this settlement shows we will continue to hold accountable financial institutions that elected to ignore the rules and to pursue their own financial interests at the expense of hardworking Americansrdquo
SOURCE Justice Department
LEGAL BRIEFS
11
MARCH 2015
Housing Rising Student Loan DebtGrowing student loan debt is weighing down on an already tepid housing market according to fresh data from the New York Federal Reserve Rising student loan debt is shutting out potential buyers A new report from the Federal Reserve shows that student loan debt rose in the fourth quarter of 2014 to a record $116 trillion dollars Thatrsquos 7 percent higher than the year before And delinquencies are rising too with current default rates at more than 11 percent Historically first-time home buyers are people in their 20s and 30s but this same age group is carrying a majority of that $116 trillion in loan debt According to the Fed the rising student loan debt is decreasing both household formation and home ownership Labor market growth and higher wages will help shrink student loan debt according to economists
Rents New York Rents Too HighNew Yorkers are now spending approximtely 60 percent of their income to live in Manhattan according to a new study by the website Streeteasy The median monthly New York rent hit $2700 mdash or more than 58 percent of residentsrsquo median income Residents in Brooklyn pay the highest median rent cost mdash 60 percent Surprisingly Manhattanites arenrsquot the worst off Residents in Brooklyn pay the highest median rent cost mdash 60 percent They are followed by those living in the Bronx at 52 percent Manhattan at 49 percent Queens at 41 percent and Staten Island at 30 percent
Trends Millennials Lead All BuyersThe millennial generation represented the largest share of recent home buyers according to a new report from the National Association of Realtors The 2015 National Association of Realtors ldquoHome Buyer and Seller Generational Trends Reportrdquo found that an overwhelming majority of buyers search for homes online and then purchase their home through a real estate agent with millennials also known as Gen Y using agents the most With millennials entering the peak buying period and expected to soon surpass boomers in total population the NAR believes the share of millennial purchases would be higher if not for the numerous obstacles that have slowed their journey to homeownership
Study Consumer Confidence Grows Consumer optimism toward the economy is growing and appears to be contributing to further improvement in overall housing sentiment according to Fannie Maersquos National Housing Survey Most consumers expect home rental prices to continue to rise in the next year but 43 percent still think it is too difficult to get a mortgage the survey found The share of respondents who believe the economy is headed in the right direction increased 3 percentage points in February to an all-time survey high of 47 percent while the those who believe it is headed in the wrong direction decreased to 45 percent a new survey low ldquoWe continue to see strength in attitudes about the current home buying and selling environment and consistently high shares of consumers saying they expect to buy a home on their next moverdquo said Doug Duncan senior vice president and chief economist at Fannie Mae
Tech Smart Homes Sell Faster As smart home technology plays a larger role in real estate Coldwell Banker Real Estate LLC recently released a survey uncovering what smart features home buyers are looking for when purchasing a home and how those features impact a home sale Coldwell Banker also published a list of 25 smart home products and systems in the categories that matter most to buyers A survey of 500 Coldwell sales associates found that 62 percent of buyers want to control their home from their smart phone or tablet One third (33 percent) said that homes with smart home technology sell faster than homes without them Gen X (age 35-49) is the ldquosmartestrdquo generation of home buyers interested in smart home technology today the survey found
Study Remodeling RecoveryThe $300 billion US home improvement industry is faring much better than the broader housing market according to a new report from the Joint Center for Housing Studies of Harvard University ldquoEmerging Trends in the Remodeling Marketrdquo is the latest in the Improving Americarsquos Housing series published by the Joint Center While new home construction is many years away from full recovery the Center reports that Americarsquos home improvement industry could post record-level spending in 2015 with kitchen and bath upgrades leading the way
FINANCIAL BRIEFS
12
MARCH 2015
By Octavio Nuiry Managing Editor
North Carolina Teeing Up Real Estate in the Tar Heel State
In the game of golf an eagle mdash two strokes under par mdash is good news
In the real estate game buying a home located on a golf course is like sinking a housing eagle Not only do you waking up every morning to the possibility of golfing every day but many golf communities are attractive to buyers because of their safety beauty and quality of life
In 2013 Americans bought 717000 vacation homes up 30 percent from a year earlier and proximity to a golf course was a decisive factor for a third of the buyers according to the National Association of Realtorsrsquo 2014 Investment and Vacation Buyers Survey The median price of a vacation home in 2013 was $168700 up 125 percent from 2012
In the Tar Heel State golf and real estate are frequently tied together In North Carolina the vast geographical diversity provides golf home buyers with a wide choice of locations whether coastal inland or mountain From the shores of the Outer Banks to the rolling hills of the Black Mountains golf courses pepper the statersquos landscape Nearly 50 years after Hilton Head Island SC ushered in the first master-planned golf home community North Carolina is slowly recovering from the housing downturn
According to David Lott publisher and founder of Golfcoursehomenet golf communities were hit hard during the recent housing downturn Lott said since the recession the number of courses closing has outnumbered the courses opening He said North Carolina golf communities are slowly rebounding Golf communities in the remote western mountains
Continued Next Page
STATE SPOTLIGHT
Where Most of the Properties Come With a Club Membership AttachedTHREE FOR SALE
Resort community living at its finest in this beautiful all brick three bedroom home on a private wooded lot with wa-ter views and transferable Pinehurst Country Club membership (the buyer pays half initiation fee to join) Agent Sue Boynton Pinehurst Resort Realty (704) 564-8139 wwwpinehurstresort-realtycom
Built in 2006 this brick home on the 18th fairway of the Beacon Ridge golf course has four bedrooms and three baths Club membership attached Agent Dawn Crawley Pinehurst Resort Realty (910) 783-7993 wwwpinehurstresortre-altycom
Located on Pinehurst No 2 golf course this home has four bedrooms and five baths and is walking distance to the His-toric Village of Pinehurst The home is located in Pinehurstrsquos prestigious gated community Fairwoods 7 Agent Marga-ret Chirichingo Pinehurst Resort Realty (704) 564-8139 wwwpinehurstresortre-altycom
WHAT 3-bedroom homeHOW MUCH $225000
WHAT 4-bedroom houseHOW MUCH $399000
WHAT 4-bedroom homeHOW MUCH $1499000
13
MARCH 2015
of North Carolina were hit hardest Lott said
ldquoThe recovery started on the shores of the Atlantic and is slowly working its way inlandrdquo said Lott a former reporter for Golf Digest referring to the westward movement of North Carolinarsquos golf real estate recovery ldquoThe pace of the recovery is going to be different in the various geographical areas The mountain areas are still having the most troublerdquo
During the recent real estate boom developers and home buyers believed residential golf communities were a sure-fire bet Many buyers purchased properties to flip for a quick profit Others were lured for the country club amenities stunning views and security of the gated communities While there are no reliable data on the growth of master-planned golf communities real estate brokers and market analysts say the market is slowly recovering
Clearly the recession of 2008 sliced the growth of golf communities into the rough According to the National Golf Foundation only 14 new courses opened in the United States in 2014 the fewest in 25 years while almost 160 of the countryrsquos 14600 18-hole golf facilities shut down Last year marked the eight straight year that more courses closed than opened
Pinehurst Central North Carolina At Pinehurst (No 2) the luxurious golferrsquos resort in the arid sand hills of south-central North Carolina housing prices remain comparatively reasonable considering that most of the property in Pinehurst comes with a membership to Pinehurst Country Club Pinehurst and its surrounding communities mdash known locally as ldquothe Sandhillsrdquo mdash is located in Moore County Pinehurst is transiting from a playground for retirees into a younger family-friendly resort according to Sue Boynton an associate broker with Pinehurst Resort Realty in Pinehurst NC
ldquoA lot of the buyers here in Pinehurst are from the northeastrdquo said Boynton an avid golfer who lives in the Doral Woods golf community in Pinehurst ldquoBut there are a lot from Charlotte toordquo
As one of the countryrsquos first golf resorts Pinehurst is viewed as the cradle of the sport Pinehurst which ranks 16th on Golf Magazinersquos list of Top 100 Courses in the World is located 60 miles southwest of Raleigh No golf community in America is as rich in golf history as Pinehurst which is home to 42 golf courses many of them world renowned Last year for example the 120-year old Pinehurst resort hosted two of golfrsquos greatest stateside productions mdash the US Menrsquos Open and the Womenrsquos Open Golfers Vickie and David Bowles who purchased a historic home on the tee box of hole 5 on Pinehurst (No 2) in 2013 said they enjoy the layback atmosphere of the Pinehurst Village ldquoOne thing I love about Pinehurst is that I get to spend time with my husbandrdquo said Vickie Bowles referring to time together on the links with her husband David ldquoI had to learn golf and he had to
learn how to snow ski The weather is exceptional and the wersquore close to the mountains and the beaches of North Carolinardquo Built in 1895 on 5500 acres of the Sandhills region of North Carolina the Village of Pinehurst was originally developed as a health resort for patients recovering from tuberculosis As the popularity of North Carolina has surged so have real estate prices Home sites of $600000 are common And homes priced above $5 million donrsquot turn heads Boynton said She said most of the Pinehurst properties come with a membership to the Pinehurst Country Club Property ownership is the only requirement for membership said Bowles
ldquoPinehurst Resort is uniquerdquo said Boynton ldquoIf somebody loves golf Pinehurst is the place to be Itrsquos becoming a neighborhood-friendly community It is
Continued Next Page
David LottFounderPublisher
GolfCourseHomecom Vineyard Haven Mass
The recovery started on the shores of the Atlantic and is slowly
working its way inland The pace of the recovery is going to be different in the various geographical areas The
mountain areas are still having the most
trouble
14
MARCH 2015
increasingly transitioning to younger familiesrdquo
To become a member of the Pinehurst Country Club you have to own property in Pinehurst said Boynton Pinehurst home buyers are required to pay a $12500 transfer fee which is often included in the purchase price and $381 in monthly dues
ldquoPeople are still buyingrdquo said Boynton citing that people from all over the world come to Pinehurst and nearby Southern Pines to play golf and ride horses The area is rural with horse properties and farms Increasingly she said non-golfers are buying in golf communities
According to a survey conducted by Better Homes and Gardens Real Estate 57 percent of baby boomers say they plan to move to a new home in retirement When asked which type of community they were likely to choose 39 percent said a small town like Pinehurst or a rural community The next choice was a 55-and-older community (27 percent) followed by urban living (26 percent) and 25 percent said they would buy a second home such as a vacation beach house or a golf course community
Golf went mainstream in America in the 1890s according to Richard J Moss author of ldquoThe Kingdom of Golf in Americardquo a rich and colorful history of the sport Its popularity and its fortune has waxed and waned in response to larger economic events As America prospered in the 20th century public courses opened alongside private clubs and exposed more people to the sport Between 1992 and 2001
at least 60 percent of new golf courses were tied to property developments writes Moss Golf courses increase the value of surrounding homes and developers built long complicated courses with the hope of attracting tournaments and selling more homes
Moss points out that golf and real estate deals have always been connected Nationwide approximately 60 percent of golf courses are linked to real estate development claims Moss Courses came to be designed with premium-priced houses bordering fairways similar to houses bordering beaches
Moss believes that neither the recession nor the eclipse of its brightest star can stymie professional golf Today according to Moss there are roughly 16000 golf courses in America half or more of the golf courses in the world Average prize money for a PGA Tour event doubled between 2000 and 2010 from $33 million to $6 million reports
Continued Next Page
If somebody loves golf Pinehurst is the place to be Itrsquos becoming a
neighborhood-friendly community It is
increasingly transitioning to younger families
Sue BoyntonAssociate Broker
Pinehurst Resort Realty Pinehurst NC
Pinehurst Resort amp Country Club - No 4 Pinehurst NC
15
MARCH 2015
the Economist In 2014 professional golfers were some of the highest paid athletes in America Phil Mickelson the amiable left-hander ranked 6th nationwide making $37 million according to Fortune Magazine Tiger Woods despite his back problems and not winning a major tournament since 2008 ranked 7th pulling in $35 million
According to the latest list of Golf Digestrsquos top 100 public and private golf courses in the US five North Carolina courses make the cut Leading the list is Tom Fazio-designed Wade Hampton Gold Club in Cashiers NC Pinehurst No 2 was the next highest course ranked on the list coming in at 28 on the list Rounding out the top five are all Fazio designs including Mountain Golf and Lake Club in Cashiers (No 78) Eagle Point Golf Club in Wilmington (No 89) and Diamond Creek Golf Club in Banner Elk (No 94)
Western North Carolina In the mile-high mountains of western North Carolina some of the best golf real estate is found atop the famed Blue Ridge Mountains the tallest peaks of the eastern United States
ldquoOur area is considered the worldrsquos premier mountain golf mecca with two of the top three mountain golf clubs in the world Wade Hampton Golf Club and Mountaintop Golf and Lake Clubrdquo said Bill Kruckenberger brokerowner of Sapphire Valley Real Estate in Sapphire NC ldquoBoth are Fazio courses also considered to be in the top 100 courses worldwide There are a ton of high-end mountain golf courses on our very small mountain plateau (including Bobby Jones summer club Highlands Country Clubrdquo
Kruckenberger knows a thing or two about golf Although hersquos not a golfer he sold the arearsquos public golf course Sapphire National Golf Club not once mdashbut twice
Continued Next Page
Bill KruckenbergerBrokerOwner
Sapphire Valley Real Estate
Sapphire NC
Our area is considered the worldrsquos premier mountain golf mecca with two of the
top three mountain golf clubs in the world
Perched 4400 feet atop the Blue Ridge Mountains buyers can enjoy big moun-tain views from this three bedroom and 3 bath Sapphire Valley Resort home Membership in the Sapphire National Golf Club is included Agent Bill Kruck-enberger Sapphire Valley Real Estate (828) 506-8398 httpwwwsapphirev-alleypropertiescom
WHAT 3-bedroom homeHOW MUCH $585000
This custom golf community home has five bedrooms and three baths Located minutes from Asheville this home is a golfers dream Agent Jeff Stewart Keller Williams Professionals (828) 337-8837 httpwwwbrokerjeffnet
WHAT 5-bedroom houseHOW MUCH $484900
Located on Wade Hamptonrsquos 8 fairway this two-story home has five bedrooms and seven baths and is walking dis-tance to the clubhouse This golf-front mountain home is located in township of Cashiers NC in a prestigious gated community Agent Bill Kruckenberger Sapphire Valley Real Estate (828) 506-8398 httpwwwsapphirevalleyproper-tiescom
WHAT 5-bedroom homeHOW MUCH $2975000
THREE FOR SALE Western North Carolina Golf Homes
16
MARCH 2015Nestled 4000 feet in the Great Smoky Mountains the golfing community of Wade Hampton is a luxury North Carolina mountain real estate golf community 65 miles southwest of Asheville
Kruckenberger has a healthy business selling to second-home buyers and retirees and renting many of those homes out to vacationers He said home prices at Wade Hampton range from $700000 for a cottage to $5 million At Sapphire National Golf Club a two-
bedroom condominium sells for $150000 and homes can sell as high as $5 million
ldquoOur area is 90 percent second-home buyersrdquo he said ldquoA good number are retirees Most buyers are out of state Florida is the number one source of buyers in our area They come to escape the heat in Florida and enjoy the cool mountain air We have a good number of buyers from South Carolina and Georgia And Texans are coming in drovesrdquo
Coastal North Carolina Increasingly golf communities offer a country club experience with swimming tennis spas fine dining and waterfront homes Maritime golf real estate resorts abound along North Carolinarsquos Atlantic coast In southeastern North Carolina along the statersquos 300-mile Atlantic coast some top-notch golf resorts await buyers who like seaside second home properties according Vance Young a broker with Intracoastal Realty in Wrightsville Beach NC
Young said coastal golf home buyers are seeking other amenities beside golf
Continued Next Page Wade Hampton Golf Club Cashiers NC
17
MARCH 2015ldquoAs far as general trends I do see and emphasis on location good shopping access to medical care and transportationrdquo said Young a top producer who sold 125 homes last year for $81 million in sales ldquoBuyers are becoming more demanding and more selective These additional amenities have become critically important the last few yearsrdquo
At Landfall a 2200 acre gated development with 1600 homes nestled along the coast near Wrightsville Beach and Figure Eight Island just nine miles northeast of Wilmington NC buyers can enjoy golf homes at the Country Club of Landfall which offers 45 holes of championship golf 27 designed by Jack Nicklaus and 18 crafted by Peter Dye said Young
Young said buyers are attracted by Wilmington NC the riverfront community along Cape Fear River which features a Riverwalk with over 200
restaurants and shops
In Landfall a golf course townhomes start at $300000 and go up to $700000 he said Single family homes range from $500000 to $5 million The closer you are to the beach the more expensive the homes become
ldquoMost of the residents of Landfall mdash 85 to 90 percent mdash are primary residentsrdquo said Young the No 1 ranked broker in Hanover County who specialize in waterfront and golf resort communities of Wrightsville Beach Figure Eight Island and Landfall ldquoBut we also have a large contingent of second-home owners who come largely from the east coast especially Virginia DC New York and New Jerseyrdquo
As American golf enters the second century of existence it faces a supply-and-demand dilemma too many courses and not enough players But in North Carolina golf real estate is soaring like an eagle
Coastal North Carolina Golf Homes
Vance YoungBroker
Intracoastal RealtyWrightsville Beach NC
As far as general trends I do see an emphasis on location good shopping access to medical care
and transportation
Overlooking the second tee of the Jack Nicklaus golf course at the Country Club of Landfall this beautiful four bedroom five bath Landfall NC French Country inspired design home has a pool and is move-in ready Agent Vance Young In-tracoastal Realty Corp (910) 232-8850 httpVanceYoungcom
This Landfall brick home has four bed-rooms and four baths wit 10 foot ceil-ings and 8 foot doors throughout This Steve Dunn built home is walking dis-tance to the Country Club of Landfall Agent Vance Young Intracoastal Re-alty Corp (910) 232-8850 httpVanc-eYoungcom
WHAT 4-bedroom homeHOW MUCH $769000
Built in 2006 this brick home overlooks the Jack Nicklaus Pines 4 fairway in Landfall NC It has three bedrooms and four baths The home features granite kitchen stainless appliances and a five burner gas range Agent Alison Bern-hart Landfall Realty LLC (800) 227-8208 httpwwwlandfallrealtycom
WHAT 3-bedroom houseHOW MUCH $689000
WHAT 4-bedroom homeHOW MUCH $1199900
THREE FOR SALE
18
MARCH 2015BOOK REVIEWThe GM Building New Yorkrsquos Most Sought After PropertyBy Octavio Nuiry Managing Editor
The General Motors Building isnrsquot the most iconic building in New York City Nor is it the tallest or most elegant But something about the glemming 50-story white marble tower that real estate tycoons canrsquot resist
In ldquoThe Liarrsquos Ball The Extraordinary Saga of How One Building Broke the Worldrsquos Toughest Tycoonsrdquo (Wiley 2014) Vicky Ward lifts the veil on New York Cityrsquos cutthroat world of high-stakes real estate shining the
spotlight on the half-century fight to own one of Americarsquos most desired pieces of real estate the General Motors Building on 5th Avenue in Manhattan
The book largely tells the tragic rise-and-fall of flamboyant New York real estate developer Harry Macklowe who in 2003 engineered the biggest real estate transaction in US history when he bought the GM Building for an unprecedented $14 billion in borrowed funds
Not only does Ward chronicle Macklowersquos recklessness but the book also is an entertaining behind the scenes glimpse at a cast of high-powered New York City real estate tycoons who lie cheat steal mdash and sue each other mdash to acquire NYC trophy properties
The colorful book which spans 150 years of New York real estate history not only documents the history of the GM Building
but some of its flowery suitors including the corrupt politician William ldquoBossrdquo Tweed Cecila Banatter the ldquohousewife tycoonrdquo too busy to name her baby Max Rayne the English property developer who snapped up the iconic Savoy-Plaza Hotel (site of the future GM Building) Disque D Deane the unlovable rogue financier Rita Jenrette Harry Macklowe and Donald Trump She shows how grown men mdash and some powerful women mdash behave like children when their toys are taken away from them
Built by General Motors for corporate offices and a show room on the southeast corner of Central Park in 1968 the GM Building is not New Yorkrsquos tallest skyscraper or most beautiful but it is
desirable in the real estate world for its location across from the Plaza Hotel But itrsquos an iconic trophy tower mdash the most expensive office tower in America mdash that occupys an entire city block and has brought out the worst in a string of landlords from Bill Zeckendorf to Harry Macklowe writes Ward General Motors Co later sold the building but maintained a sizeable presence as a tenant for years
The bookrsquos title comes from the annual black tie gala that the Real Estate Board of New York throws itself every January at the Hilton Grand Ballroom
ldquoEvery year toward the end of January around 2000 members of the New York real estate industry gather at the Hilton to celebrate hellip an event affectionately known by its attendees as lsquothe
Liarrsquos Ballrdquo writes Ward ldquoItrsquos rough itrsquos vulgar and itrsquos a riveting showrdquo
Ward is a New York-based British-born investigative journalist and former contributing editor at Vanity Fair
In 1998 Donald Trump teamed up with financial services company Conseco to buy the building for $878 million from GM which relocated back to Detroit Trump cleaned up the white marble
The Liarrsquos BallBy Vicky Ward
(Wiley 240 pages $2995)
Continued Next Page
Every year toward the end of January around 2000 members of the New York
real estate industry gather at the Hilton to celebrate hellip an event affectionately known
by its attendees as lsquothe Liarrsquos Ball Itrsquos rough itrsquos vulgar and
itrsquos a riveting show
Vicky Ward Author
ldquoThe Liarrsquos Ballrdquo
19
MARCH 2015
walls put in new granite floors emblazed his name on the front of the building and raised rents By 2001 Trump had a chance to buy the entire building for $995 million but he hesitatedTrumprsquos loss was Macklowersquos gain In 2003 Macklowe bought the GM Building from Trump and Conseco for a then-record price of $14 billion Soon Macklowe convinced Steve Jobs then CEO of Apple to open a subterranean flagship store with a glass cube in front of the GM Building It opened in 2006 and was a retail success Now the Apple Store is one of New Yorkrsquos major retail locations
ldquoFor four year Macklowe was riding high after his unexpected success with the GM Building where his visionary ideas mdash including the creation of the iconic Apple flagship store in the basement mdash created $1 billion in valuerdquo writes Ward
Soon however Macklowersquos luck ran out
Convinced he could pull off an even bigger deal Macklowe put
the building up as collateral for a $72 billion loan but the market turned and Macklowe lost the GM Building He sold the building for $28 billion in 2008
The $28 billion price tag remains the highest price ever paid for a single office building in the US
Today the General Motors Building is owned by Boston Properties (which controls 60 percent of the ownership) Chinese developer Zhang Xin and Brazilrsquos Safra Group (each owning a 20 percent stake) The latest deal values the property at $34 billionBut not everyone is a fan of the book
Donald Trump told the New York Post that ldquothe book doesnrsquot capture the essence the glamour or excitement of what happenedrdquo On Twitter Trump wrote ldquoJust finished reading a poorly written and very boring book on the GM Buildingrdquo calling Ward a ldquothird rate writerrdquo
The General Motors Building
DOWNLOAD REALTYTRACrsquoS FREE 2014 GUIDE TO SHORT SALES
State Rank
State Default Auction REO Total 1every X HU (rate)
Δ from Jan 2015
Δ from Feb 2014
US Total 31753 45880 24305 101938 1295 -429 -939
14 Alabama 0 1370 312 1682 1295 6555 2359
30 Alaska 60 59 24 143 2144 1917 2222
24 Arizona 0 1216 395 1611 1775 -2076 -2603
41 Arkansas 0 220 158 378 3494 -979 -503
13 California 5029 4301 2208 11538 1190 -793 -1161
26 Colorado 0 888 267 1155 1924 -2539 -1012
31 Connecticut 234 146 309 689 2158 -5238 -5834
8 Delaware 202 171 53 426 957 -819 1123
District of Columbia 5 37 2 44 6780 23846 52857
3 Florida 3576 7373 4844 15793 570 -1496 -3469
17 Georgia 0 1881 1014 2895 1414 1135 -2834
39 Hawaii 61 47 87 195 2678 598 773
5 Idaho 523 185 56 764 877 2797 11105
7 Illinois 2676 1649 1515 5840 906 -1917 -1051
4 Indiana 1225 1270 721 3216 871 1798 2289
21 Iowa 453 210 138 801 1674 6182 -3223
22 Kansas 231 347 139 717 1723 2535 5689
34 Kentucky 102 534 209 845 2284 4322 1544
27 Louisiana 272 444 297 1013 1949 846 -3494
37 Maine 127 86 62 275 2625 -3514 -5150
1 Maryland 1650 1520 1061 4231 564 1010 -087
32 Massachusetts 746 373 156 1275 2203 897 5269
16 Michigan 746 2178 1030 3208 1412 1154 484
40 Minnesota 0 470 315 785 2999 -2758 -1771
45 Mississippi 0 180 57 237 5390 -1350 33091
35 Missouri 0 706 352 1058 2565 -3424 -1314
49 Montana 0 26 19 45 10740 -1818 -2857
44 Nebraska 71 64 42 177 4521 -2063 11325
2 Nevada 1079 609 381 2069 569 687 1184
43 New Hampshire 0 93 53 146 4214 -4983 -6507
6 New Jersey 2283 1293 406 3982 895 -833 -1721
29 New Mexico 253 80 91 424 2128 -921 -1452
25 New York 3251 702 524 4477 1812 416 1948
10 North Carolina 2234 1107 657 3998 1088 053 10020
50 North Dakota 0 3 2 5 64942 6667 6667
9 Ohio 1480 2138 1505 5123 1000 -739 -590
33 Oklahoma 151 402 201 754 2215 2715 -157
12 Oregon 451 689 326 1466 1144 3512 7663
15 Pennsylvania 1299 1915 853 4067 1368 1118 860
42 Rhode Island 0 77 52 129 3585 -5770 -5257
11 South Carolina 872 734 293 1899 1129 717 -1364
47 South Dakota 0 22 24 46 7950 5862 222
23 Tennessee 0 1246 366 1612 1750 -1801 7315
28 Texas 3 3585 1185 4773 2110 1175 -033
20 Utah 173 366 96 635 1557 -2616 -2275
48 Vermont 0 22 12 34 9498 2143 12667
38 Virginia 0 965 315 1280 2642 -2228 -008
18 Washington 88 1316 637 2041 1421 -078 287
46 West Virginia 0 17 100 117 7529 12075 10526
19 Wisconsin 893 474 357 1724 1523 622 -3205
36 Wyoming 0 74 27 101 2604 5538 1744
February 2015 State-by-State Foreclosure Activity Summary
Rank Metro
Housing Units Per
Foreclosure Filing (Rate)
1 Tampa FL 495
2 Miami FL 539
3 Baltimore MD 547
4 Riverside CA 630
5 Chicago IL 721
6 Philadelphia PA 903
7 Washington DC 1113
8 Seattle WA 1213
9 Atlanta GA 1284
10 Los Angeles CA 1316
11 San Diego CA 1335
12 Detroit MI 1356
13 New York NY 1411
14 St Louis MO 1483
15 Phoenix AZ 1733
16 Dallas TX 1799
17 Minneapolis MN 2000
18 Houston TX 2155
19 San Francisco CA 2182
20 Boston MA 2763
TOP 20 Foreclosure rates in the
Nationrsquos 20 largest metros in February 2015
Housing News Report is a monthly publication dedicated to helping investors succeed by providing them with timely and relevant information about the housing market
EXECUTIVE EDITORDaren Blomquist
MANAGING EDITOROctavio Nuiry
WRITERSDaren Blomquist Octavio Nuiry Peter Miller
ART DIRECTIONEunice Seo
CONTACT USPhone 8003069886
LETTERS TO THE EDITORE-mail editorforeclosurenewsreportcomMail Housing News Report 1 Venture Plaza Suite 300 Irvine CA 92691
9
MARCH 2015
Realtor Sentenced to 3 Years in PrisonA Seal Beach Calif real estate agent was sentenced to 3 years in federal prison for operating a $14 million fraud scheme in California that bilked investors who paid money in response to false promises of ownership in commercial real estate according to the US Attorney
Karen Hanover 48 was sentenced by United States District Judge Josephine Staton Judge Staton scheduled a May 8 hearing to determine how much restitution should be paid to approximately 45 victims
Hanover pleaded guilty last year to one count of mail fraud related to the scheme she ran out of two Long Beach companies mdash Commercial Investment Education LLC and Kharmic Life Strategies Inc ldquoFast Trackrdquo investment program to investors who attended seminars in Southern California Dallas and Las Vegas
Victims were induced to invest between $19000 and $29000 in the real estate scam In her pitches Hanover ldquofalsely represented to the lsquoFast Trackersrsquo that she would partner with them in real estate deals they would receive 100 percent returns on their investments and she would provide a 100 percent refund if they did not obtain a commercial property within a yearrdquo according to court documents that noted these promises were false
SOURCE US Attorney
Brokerage Realogy Launches Search PortalMove Inc which is owned by News Corp and operates the NRT the nationrsquos largest residential real estate brokerage has launched a new home search portal mdash HomesForSalecom mdash a national property portal to compete with Zillow Trulia and Move
NRT is the subsidiary of Realogy that operates real estate brokerages under Realogyrsquos Coldwell Banker Coldwell Banker Commercial Sothebyrsquos International Realty and Zip Realty brands It also owns regional brands The Corcoran Group and Citi Habitats NRT has over 42000 agents and operates over 700 offices in the US
SOURCE News Corp
Vanilla Ice Arrested for Alleged BurglaryRapper-turned rehabber Vanilla Ice was arrested Feb 18 2015 for an alleged home burglary in Lantana Fla
The former rapper whose real name is Robert Van Winkle was arrested in Lantana Fla accused of stealing furniture from a neighborrsquos home
According to Lantana police furniture a swimming pool heater and bicycles were found at Van Winklersquos property and later returned to the owner He is currently renovating a home adjacent to the property in which the items were stolen police said
Van Winkle has a home renovation show on the DIY Network ldquoThe Vanilla Ice Projectrdquo where he and a crew refurbish foreclosed or distressed homes around Palm Beach County
SOURCE Sun-Sentinel
Realtor Safety Survey The recent death of a South Florida home shopper gunned down while looking at a home in Fort Lauderdale on February 27 has the real estate industry talking about safety
Despite several tragedies in the residential real estate world over the last few years a new survey from the National Association of Realtors found that 96 percent of Realtors have never been a victim of crime But 40 percent of Realtors have found themselves in situations where they fear for their safety the survey found
The survey found that one-third of the 3000 Realtors surveyed said they carry a self-defense weapon Female Realtors are more likely to carry pepper spray while male Realtors more commonly carry a firearm Many agents 38 percent have participated in self-defense classes and 13 percent use a smart phone safety application to track their whereabouts or alert colleagues of an emergency
SOURCES National Association of Realtors Sun-Sentinel
NEWS BRIEFS
10
MARCH 2015
Trulia Will Lose Listing Data in April The online battle between Move Inc and Zillow Group flared up again
Listing syndicator ListHub will stop supplying listings on April 7 giving the nationrsquos second largest real estate listing site less than a month to find an alternative source for more than a quarter of its listings
On Feb 23 a San Francisco judge granted Trulia Inc a temporary restraining order to keep receiving listings data from ListHub
ListHub mdash which is owned by realtorcom and operated by Move Inc a News Corp subsidiary mdash announced Feb 20 that it had terminated its syndication agreement with Trulia in the wake of its acquisition by Zillow and would stop sending listings to Trulia on Feb 26
According to a copy of Truliarsquos complaint obtained by Inman News Trulia which could lose 25 percent of its listings data filed a 52-page complaint against Move Inc in San Francisco Superior Court claiming breach of contract Judge Ernest H Goldsmith scheduled a March 12 court hearing to determine whether or not to compel Move to abide by the original June 19 2016 termination date of its agreement with Trulia
Both Zillow and Trulia will lose listing information from ListHub when the contract between those two entities expires
SOURCES Inman News Courthouse News
W Va Supreme Court Rules in Favor of MERS On February 5 the Supreme Court of Appeals of West Virginia held that the recording of trust deeds do not have to be recorded at the office of the clerk of the county commission
In State of W Va v Waren McGraw the Court disagreed with Wyoming Countyrsquos claims that the recording of trust deed assignments in county record books is required by state law ldquoin order to clear title to properties in the Countiesrdquo While the Counties did not name MERSCORP Holdings Inc or Mortgage Electronic Registrations Systems Inc (MERS) as a defendant in the case the allegations in the complaint were focused on challenging the operations of MERS and the MERSreg System
In his opinion West Virginia Supreme Court of Appeals Justice Menis E Ketchum II said that ldquorecording statutes in West Virginia do not require that the assignment of a trust deed be recorded in the office of the clerk of the county commissionrdquo
SOURCE W Va v Warren McGraw
MetLife Fined $123M for Bad LoansMetLife will cough up $1235 million to settle claims that it knowingly approved federally insured home loans for people who didnrsquot qualify according to the US Justice Department
As part of the settlement MetLife Home Loans admitted that its predecessor mdash MetLife Bank mdash repeatedly certified for Federal Housing Administration insurance on mortgage loans that didnrsquot meet federal underwriting requirements between 2008 and 2012
Furthermore MetLife admitted that the bank knew a large number of the loans were not eligible for FHA mortgage insurance through its own quality control practices Between 2009 and 2010 the bank discovered that anywhere from 25 to 60 percent of these loans were seriously deficient mdash findings that were regularly shared with the bankrsquos CEO and its directors the Justice Department said
Over a two-year period the bank self-identified 1097 mortgages insured by the FHA that were seriously deficient but only reported 321 of them to the Department of Housing and Urban Development As a result FHA insured hundreds of home loans that werenrsquot eligible mdash causing the agency to suffer serious losses when it later paid insurance claims on the loans
ldquoMetLife Bankrsquos improper FHA lending practices not only wasted taxpayer funds but also inflicted harm on homeowners and the housing market that lasts to this dayrdquo said Acting Assistant Attorney General Joyce R Branda of the Justice Departmentrsquos Civil Division ldquoAs this settlement shows we will continue to hold accountable financial institutions that elected to ignore the rules and to pursue their own financial interests at the expense of hardworking Americansrdquo
SOURCE Justice Department
LEGAL BRIEFS
11
MARCH 2015
Housing Rising Student Loan DebtGrowing student loan debt is weighing down on an already tepid housing market according to fresh data from the New York Federal Reserve Rising student loan debt is shutting out potential buyers A new report from the Federal Reserve shows that student loan debt rose in the fourth quarter of 2014 to a record $116 trillion dollars Thatrsquos 7 percent higher than the year before And delinquencies are rising too with current default rates at more than 11 percent Historically first-time home buyers are people in their 20s and 30s but this same age group is carrying a majority of that $116 trillion in loan debt According to the Fed the rising student loan debt is decreasing both household formation and home ownership Labor market growth and higher wages will help shrink student loan debt according to economists
Rents New York Rents Too HighNew Yorkers are now spending approximtely 60 percent of their income to live in Manhattan according to a new study by the website Streeteasy The median monthly New York rent hit $2700 mdash or more than 58 percent of residentsrsquo median income Residents in Brooklyn pay the highest median rent cost mdash 60 percent Surprisingly Manhattanites arenrsquot the worst off Residents in Brooklyn pay the highest median rent cost mdash 60 percent They are followed by those living in the Bronx at 52 percent Manhattan at 49 percent Queens at 41 percent and Staten Island at 30 percent
Trends Millennials Lead All BuyersThe millennial generation represented the largest share of recent home buyers according to a new report from the National Association of Realtors The 2015 National Association of Realtors ldquoHome Buyer and Seller Generational Trends Reportrdquo found that an overwhelming majority of buyers search for homes online and then purchase their home through a real estate agent with millennials also known as Gen Y using agents the most With millennials entering the peak buying period and expected to soon surpass boomers in total population the NAR believes the share of millennial purchases would be higher if not for the numerous obstacles that have slowed their journey to homeownership
Study Consumer Confidence Grows Consumer optimism toward the economy is growing and appears to be contributing to further improvement in overall housing sentiment according to Fannie Maersquos National Housing Survey Most consumers expect home rental prices to continue to rise in the next year but 43 percent still think it is too difficult to get a mortgage the survey found The share of respondents who believe the economy is headed in the right direction increased 3 percentage points in February to an all-time survey high of 47 percent while the those who believe it is headed in the wrong direction decreased to 45 percent a new survey low ldquoWe continue to see strength in attitudes about the current home buying and selling environment and consistently high shares of consumers saying they expect to buy a home on their next moverdquo said Doug Duncan senior vice president and chief economist at Fannie Mae
Tech Smart Homes Sell Faster As smart home technology plays a larger role in real estate Coldwell Banker Real Estate LLC recently released a survey uncovering what smart features home buyers are looking for when purchasing a home and how those features impact a home sale Coldwell Banker also published a list of 25 smart home products and systems in the categories that matter most to buyers A survey of 500 Coldwell sales associates found that 62 percent of buyers want to control their home from their smart phone or tablet One third (33 percent) said that homes with smart home technology sell faster than homes without them Gen X (age 35-49) is the ldquosmartestrdquo generation of home buyers interested in smart home technology today the survey found
Study Remodeling RecoveryThe $300 billion US home improvement industry is faring much better than the broader housing market according to a new report from the Joint Center for Housing Studies of Harvard University ldquoEmerging Trends in the Remodeling Marketrdquo is the latest in the Improving Americarsquos Housing series published by the Joint Center While new home construction is many years away from full recovery the Center reports that Americarsquos home improvement industry could post record-level spending in 2015 with kitchen and bath upgrades leading the way
FINANCIAL BRIEFS
12
MARCH 2015
By Octavio Nuiry Managing Editor
North Carolina Teeing Up Real Estate in the Tar Heel State
In the game of golf an eagle mdash two strokes under par mdash is good news
In the real estate game buying a home located on a golf course is like sinking a housing eagle Not only do you waking up every morning to the possibility of golfing every day but many golf communities are attractive to buyers because of their safety beauty and quality of life
In 2013 Americans bought 717000 vacation homes up 30 percent from a year earlier and proximity to a golf course was a decisive factor for a third of the buyers according to the National Association of Realtorsrsquo 2014 Investment and Vacation Buyers Survey The median price of a vacation home in 2013 was $168700 up 125 percent from 2012
In the Tar Heel State golf and real estate are frequently tied together In North Carolina the vast geographical diversity provides golf home buyers with a wide choice of locations whether coastal inland or mountain From the shores of the Outer Banks to the rolling hills of the Black Mountains golf courses pepper the statersquos landscape Nearly 50 years after Hilton Head Island SC ushered in the first master-planned golf home community North Carolina is slowly recovering from the housing downturn
According to David Lott publisher and founder of Golfcoursehomenet golf communities were hit hard during the recent housing downturn Lott said since the recession the number of courses closing has outnumbered the courses opening He said North Carolina golf communities are slowly rebounding Golf communities in the remote western mountains
Continued Next Page
STATE SPOTLIGHT
Where Most of the Properties Come With a Club Membership AttachedTHREE FOR SALE
Resort community living at its finest in this beautiful all brick three bedroom home on a private wooded lot with wa-ter views and transferable Pinehurst Country Club membership (the buyer pays half initiation fee to join) Agent Sue Boynton Pinehurst Resort Realty (704) 564-8139 wwwpinehurstresort-realtycom
Built in 2006 this brick home on the 18th fairway of the Beacon Ridge golf course has four bedrooms and three baths Club membership attached Agent Dawn Crawley Pinehurst Resort Realty (910) 783-7993 wwwpinehurstresortre-altycom
Located on Pinehurst No 2 golf course this home has four bedrooms and five baths and is walking distance to the His-toric Village of Pinehurst The home is located in Pinehurstrsquos prestigious gated community Fairwoods 7 Agent Marga-ret Chirichingo Pinehurst Resort Realty (704) 564-8139 wwwpinehurstresortre-altycom
WHAT 3-bedroom homeHOW MUCH $225000
WHAT 4-bedroom houseHOW MUCH $399000
WHAT 4-bedroom homeHOW MUCH $1499000
13
MARCH 2015
of North Carolina were hit hardest Lott said
ldquoThe recovery started on the shores of the Atlantic and is slowly working its way inlandrdquo said Lott a former reporter for Golf Digest referring to the westward movement of North Carolinarsquos golf real estate recovery ldquoThe pace of the recovery is going to be different in the various geographical areas The mountain areas are still having the most troublerdquo
During the recent real estate boom developers and home buyers believed residential golf communities were a sure-fire bet Many buyers purchased properties to flip for a quick profit Others were lured for the country club amenities stunning views and security of the gated communities While there are no reliable data on the growth of master-planned golf communities real estate brokers and market analysts say the market is slowly recovering
Clearly the recession of 2008 sliced the growth of golf communities into the rough According to the National Golf Foundation only 14 new courses opened in the United States in 2014 the fewest in 25 years while almost 160 of the countryrsquos 14600 18-hole golf facilities shut down Last year marked the eight straight year that more courses closed than opened
Pinehurst Central North Carolina At Pinehurst (No 2) the luxurious golferrsquos resort in the arid sand hills of south-central North Carolina housing prices remain comparatively reasonable considering that most of the property in Pinehurst comes with a membership to Pinehurst Country Club Pinehurst and its surrounding communities mdash known locally as ldquothe Sandhillsrdquo mdash is located in Moore County Pinehurst is transiting from a playground for retirees into a younger family-friendly resort according to Sue Boynton an associate broker with Pinehurst Resort Realty in Pinehurst NC
ldquoA lot of the buyers here in Pinehurst are from the northeastrdquo said Boynton an avid golfer who lives in the Doral Woods golf community in Pinehurst ldquoBut there are a lot from Charlotte toordquo
As one of the countryrsquos first golf resorts Pinehurst is viewed as the cradle of the sport Pinehurst which ranks 16th on Golf Magazinersquos list of Top 100 Courses in the World is located 60 miles southwest of Raleigh No golf community in America is as rich in golf history as Pinehurst which is home to 42 golf courses many of them world renowned Last year for example the 120-year old Pinehurst resort hosted two of golfrsquos greatest stateside productions mdash the US Menrsquos Open and the Womenrsquos Open Golfers Vickie and David Bowles who purchased a historic home on the tee box of hole 5 on Pinehurst (No 2) in 2013 said they enjoy the layback atmosphere of the Pinehurst Village ldquoOne thing I love about Pinehurst is that I get to spend time with my husbandrdquo said Vickie Bowles referring to time together on the links with her husband David ldquoI had to learn golf and he had to
learn how to snow ski The weather is exceptional and the wersquore close to the mountains and the beaches of North Carolinardquo Built in 1895 on 5500 acres of the Sandhills region of North Carolina the Village of Pinehurst was originally developed as a health resort for patients recovering from tuberculosis As the popularity of North Carolina has surged so have real estate prices Home sites of $600000 are common And homes priced above $5 million donrsquot turn heads Boynton said She said most of the Pinehurst properties come with a membership to the Pinehurst Country Club Property ownership is the only requirement for membership said Bowles
ldquoPinehurst Resort is uniquerdquo said Boynton ldquoIf somebody loves golf Pinehurst is the place to be Itrsquos becoming a neighborhood-friendly community It is
Continued Next Page
David LottFounderPublisher
GolfCourseHomecom Vineyard Haven Mass
The recovery started on the shores of the Atlantic and is slowly
working its way inland The pace of the recovery is going to be different in the various geographical areas The
mountain areas are still having the most
trouble
14
MARCH 2015
increasingly transitioning to younger familiesrdquo
To become a member of the Pinehurst Country Club you have to own property in Pinehurst said Boynton Pinehurst home buyers are required to pay a $12500 transfer fee which is often included in the purchase price and $381 in monthly dues
ldquoPeople are still buyingrdquo said Boynton citing that people from all over the world come to Pinehurst and nearby Southern Pines to play golf and ride horses The area is rural with horse properties and farms Increasingly she said non-golfers are buying in golf communities
According to a survey conducted by Better Homes and Gardens Real Estate 57 percent of baby boomers say they plan to move to a new home in retirement When asked which type of community they were likely to choose 39 percent said a small town like Pinehurst or a rural community The next choice was a 55-and-older community (27 percent) followed by urban living (26 percent) and 25 percent said they would buy a second home such as a vacation beach house or a golf course community
Golf went mainstream in America in the 1890s according to Richard J Moss author of ldquoThe Kingdom of Golf in Americardquo a rich and colorful history of the sport Its popularity and its fortune has waxed and waned in response to larger economic events As America prospered in the 20th century public courses opened alongside private clubs and exposed more people to the sport Between 1992 and 2001
at least 60 percent of new golf courses were tied to property developments writes Moss Golf courses increase the value of surrounding homes and developers built long complicated courses with the hope of attracting tournaments and selling more homes
Moss points out that golf and real estate deals have always been connected Nationwide approximately 60 percent of golf courses are linked to real estate development claims Moss Courses came to be designed with premium-priced houses bordering fairways similar to houses bordering beaches
Moss believes that neither the recession nor the eclipse of its brightest star can stymie professional golf Today according to Moss there are roughly 16000 golf courses in America half or more of the golf courses in the world Average prize money for a PGA Tour event doubled between 2000 and 2010 from $33 million to $6 million reports
Continued Next Page
If somebody loves golf Pinehurst is the place to be Itrsquos becoming a
neighborhood-friendly community It is
increasingly transitioning to younger families
Sue BoyntonAssociate Broker
Pinehurst Resort Realty Pinehurst NC
Pinehurst Resort amp Country Club - No 4 Pinehurst NC
15
MARCH 2015
the Economist In 2014 professional golfers were some of the highest paid athletes in America Phil Mickelson the amiable left-hander ranked 6th nationwide making $37 million according to Fortune Magazine Tiger Woods despite his back problems and not winning a major tournament since 2008 ranked 7th pulling in $35 million
According to the latest list of Golf Digestrsquos top 100 public and private golf courses in the US five North Carolina courses make the cut Leading the list is Tom Fazio-designed Wade Hampton Gold Club in Cashiers NC Pinehurst No 2 was the next highest course ranked on the list coming in at 28 on the list Rounding out the top five are all Fazio designs including Mountain Golf and Lake Club in Cashiers (No 78) Eagle Point Golf Club in Wilmington (No 89) and Diamond Creek Golf Club in Banner Elk (No 94)
Western North Carolina In the mile-high mountains of western North Carolina some of the best golf real estate is found atop the famed Blue Ridge Mountains the tallest peaks of the eastern United States
ldquoOur area is considered the worldrsquos premier mountain golf mecca with two of the top three mountain golf clubs in the world Wade Hampton Golf Club and Mountaintop Golf and Lake Clubrdquo said Bill Kruckenberger brokerowner of Sapphire Valley Real Estate in Sapphire NC ldquoBoth are Fazio courses also considered to be in the top 100 courses worldwide There are a ton of high-end mountain golf courses on our very small mountain plateau (including Bobby Jones summer club Highlands Country Clubrdquo
Kruckenberger knows a thing or two about golf Although hersquos not a golfer he sold the arearsquos public golf course Sapphire National Golf Club not once mdashbut twice
Continued Next Page
Bill KruckenbergerBrokerOwner
Sapphire Valley Real Estate
Sapphire NC
Our area is considered the worldrsquos premier mountain golf mecca with two of the
top three mountain golf clubs in the world
Perched 4400 feet atop the Blue Ridge Mountains buyers can enjoy big moun-tain views from this three bedroom and 3 bath Sapphire Valley Resort home Membership in the Sapphire National Golf Club is included Agent Bill Kruck-enberger Sapphire Valley Real Estate (828) 506-8398 httpwwwsapphirev-alleypropertiescom
WHAT 3-bedroom homeHOW MUCH $585000
This custom golf community home has five bedrooms and three baths Located minutes from Asheville this home is a golfers dream Agent Jeff Stewart Keller Williams Professionals (828) 337-8837 httpwwwbrokerjeffnet
WHAT 5-bedroom houseHOW MUCH $484900
Located on Wade Hamptonrsquos 8 fairway this two-story home has five bedrooms and seven baths and is walking dis-tance to the clubhouse This golf-front mountain home is located in township of Cashiers NC in a prestigious gated community Agent Bill Kruckenberger Sapphire Valley Real Estate (828) 506-8398 httpwwwsapphirevalleyproper-tiescom
WHAT 5-bedroom homeHOW MUCH $2975000
THREE FOR SALE Western North Carolina Golf Homes
16
MARCH 2015Nestled 4000 feet in the Great Smoky Mountains the golfing community of Wade Hampton is a luxury North Carolina mountain real estate golf community 65 miles southwest of Asheville
Kruckenberger has a healthy business selling to second-home buyers and retirees and renting many of those homes out to vacationers He said home prices at Wade Hampton range from $700000 for a cottage to $5 million At Sapphire National Golf Club a two-
bedroom condominium sells for $150000 and homes can sell as high as $5 million
ldquoOur area is 90 percent second-home buyersrdquo he said ldquoA good number are retirees Most buyers are out of state Florida is the number one source of buyers in our area They come to escape the heat in Florida and enjoy the cool mountain air We have a good number of buyers from South Carolina and Georgia And Texans are coming in drovesrdquo
Coastal North Carolina Increasingly golf communities offer a country club experience with swimming tennis spas fine dining and waterfront homes Maritime golf real estate resorts abound along North Carolinarsquos Atlantic coast In southeastern North Carolina along the statersquos 300-mile Atlantic coast some top-notch golf resorts await buyers who like seaside second home properties according Vance Young a broker with Intracoastal Realty in Wrightsville Beach NC
Young said coastal golf home buyers are seeking other amenities beside golf
Continued Next Page Wade Hampton Golf Club Cashiers NC
17
MARCH 2015ldquoAs far as general trends I do see and emphasis on location good shopping access to medical care and transportationrdquo said Young a top producer who sold 125 homes last year for $81 million in sales ldquoBuyers are becoming more demanding and more selective These additional amenities have become critically important the last few yearsrdquo
At Landfall a 2200 acre gated development with 1600 homes nestled along the coast near Wrightsville Beach and Figure Eight Island just nine miles northeast of Wilmington NC buyers can enjoy golf homes at the Country Club of Landfall which offers 45 holes of championship golf 27 designed by Jack Nicklaus and 18 crafted by Peter Dye said Young
Young said buyers are attracted by Wilmington NC the riverfront community along Cape Fear River which features a Riverwalk with over 200
restaurants and shops
In Landfall a golf course townhomes start at $300000 and go up to $700000 he said Single family homes range from $500000 to $5 million The closer you are to the beach the more expensive the homes become
ldquoMost of the residents of Landfall mdash 85 to 90 percent mdash are primary residentsrdquo said Young the No 1 ranked broker in Hanover County who specialize in waterfront and golf resort communities of Wrightsville Beach Figure Eight Island and Landfall ldquoBut we also have a large contingent of second-home owners who come largely from the east coast especially Virginia DC New York and New Jerseyrdquo
As American golf enters the second century of existence it faces a supply-and-demand dilemma too many courses and not enough players But in North Carolina golf real estate is soaring like an eagle
Coastal North Carolina Golf Homes
Vance YoungBroker
Intracoastal RealtyWrightsville Beach NC
As far as general trends I do see an emphasis on location good shopping access to medical care
and transportation
Overlooking the second tee of the Jack Nicklaus golf course at the Country Club of Landfall this beautiful four bedroom five bath Landfall NC French Country inspired design home has a pool and is move-in ready Agent Vance Young In-tracoastal Realty Corp (910) 232-8850 httpVanceYoungcom
This Landfall brick home has four bed-rooms and four baths wit 10 foot ceil-ings and 8 foot doors throughout This Steve Dunn built home is walking dis-tance to the Country Club of Landfall Agent Vance Young Intracoastal Re-alty Corp (910) 232-8850 httpVanc-eYoungcom
WHAT 4-bedroom homeHOW MUCH $769000
Built in 2006 this brick home overlooks the Jack Nicklaus Pines 4 fairway in Landfall NC It has three bedrooms and four baths The home features granite kitchen stainless appliances and a five burner gas range Agent Alison Bern-hart Landfall Realty LLC (800) 227-8208 httpwwwlandfallrealtycom
WHAT 3-bedroom houseHOW MUCH $689000
WHAT 4-bedroom homeHOW MUCH $1199900
THREE FOR SALE
18
MARCH 2015BOOK REVIEWThe GM Building New Yorkrsquos Most Sought After PropertyBy Octavio Nuiry Managing Editor
The General Motors Building isnrsquot the most iconic building in New York City Nor is it the tallest or most elegant But something about the glemming 50-story white marble tower that real estate tycoons canrsquot resist
In ldquoThe Liarrsquos Ball The Extraordinary Saga of How One Building Broke the Worldrsquos Toughest Tycoonsrdquo (Wiley 2014) Vicky Ward lifts the veil on New York Cityrsquos cutthroat world of high-stakes real estate shining the
spotlight on the half-century fight to own one of Americarsquos most desired pieces of real estate the General Motors Building on 5th Avenue in Manhattan
The book largely tells the tragic rise-and-fall of flamboyant New York real estate developer Harry Macklowe who in 2003 engineered the biggest real estate transaction in US history when he bought the GM Building for an unprecedented $14 billion in borrowed funds
Not only does Ward chronicle Macklowersquos recklessness but the book also is an entertaining behind the scenes glimpse at a cast of high-powered New York City real estate tycoons who lie cheat steal mdash and sue each other mdash to acquire NYC trophy properties
The colorful book which spans 150 years of New York real estate history not only documents the history of the GM Building
but some of its flowery suitors including the corrupt politician William ldquoBossrdquo Tweed Cecila Banatter the ldquohousewife tycoonrdquo too busy to name her baby Max Rayne the English property developer who snapped up the iconic Savoy-Plaza Hotel (site of the future GM Building) Disque D Deane the unlovable rogue financier Rita Jenrette Harry Macklowe and Donald Trump She shows how grown men mdash and some powerful women mdash behave like children when their toys are taken away from them
Built by General Motors for corporate offices and a show room on the southeast corner of Central Park in 1968 the GM Building is not New Yorkrsquos tallest skyscraper or most beautiful but it is
desirable in the real estate world for its location across from the Plaza Hotel But itrsquos an iconic trophy tower mdash the most expensive office tower in America mdash that occupys an entire city block and has brought out the worst in a string of landlords from Bill Zeckendorf to Harry Macklowe writes Ward General Motors Co later sold the building but maintained a sizeable presence as a tenant for years
The bookrsquos title comes from the annual black tie gala that the Real Estate Board of New York throws itself every January at the Hilton Grand Ballroom
ldquoEvery year toward the end of January around 2000 members of the New York real estate industry gather at the Hilton to celebrate hellip an event affectionately known by its attendees as lsquothe
Liarrsquos Ballrdquo writes Ward ldquoItrsquos rough itrsquos vulgar and itrsquos a riveting showrdquo
Ward is a New York-based British-born investigative journalist and former contributing editor at Vanity Fair
In 1998 Donald Trump teamed up with financial services company Conseco to buy the building for $878 million from GM which relocated back to Detroit Trump cleaned up the white marble
The Liarrsquos BallBy Vicky Ward
(Wiley 240 pages $2995)
Continued Next Page
Every year toward the end of January around 2000 members of the New York
real estate industry gather at the Hilton to celebrate hellip an event affectionately known
by its attendees as lsquothe Liarrsquos Ball Itrsquos rough itrsquos vulgar and
itrsquos a riveting show
Vicky Ward Author
ldquoThe Liarrsquos Ballrdquo
19
MARCH 2015
walls put in new granite floors emblazed his name on the front of the building and raised rents By 2001 Trump had a chance to buy the entire building for $995 million but he hesitatedTrumprsquos loss was Macklowersquos gain In 2003 Macklowe bought the GM Building from Trump and Conseco for a then-record price of $14 billion Soon Macklowe convinced Steve Jobs then CEO of Apple to open a subterranean flagship store with a glass cube in front of the GM Building It opened in 2006 and was a retail success Now the Apple Store is one of New Yorkrsquos major retail locations
ldquoFor four year Macklowe was riding high after his unexpected success with the GM Building where his visionary ideas mdash including the creation of the iconic Apple flagship store in the basement mdash created $1 billion in valuerdquo writes Ward
Soon however Macklowersquos luck ran out
Convinced he could pull off an even bigger deal Macklowe put
the building up as collateral for a $72 billion loan but the market turned and Macklowe lost the GM Building He sold the building for $28 billion in 2008
The $28 billion price tag remains the highest price ever paid for a single office building in the US
Today the General Motors Building is owned by Boston Properties (which controls 60 percent of the ownership) Chinese developer Zhang Xin and Brazilrsquos Safra Group (each owning a 20 percent stake) The latest deal values the property at $34 billionBut not everyone is a fan of the book
Donald Trump told the New York Post that ldquothe book doesnrsquot capture the essence the glamour or excitement of what happenedrdquo On Twitter Trump wrote ldquoJust finished reading a poorly written and very boring book on the GM Buildingrdquo calling Ward a ldquothird rate writerrdquo
The General Motors Building
DOWNLOAD REALTYTRACrsquoS FREE 2014 GUIDE TO SHORT SALES
State Rank
State Default Auction REO Total 1every X HU (rate)
Δ from Jan 2015
Δ from Feb 2014
US Total 31753 45880 24305 101938 1295 -429 -939
14 Alabama 0 1370 312 1682 1295 6555 2359
30 Alaska 60 59 24 143 2144 1917 2222
24 Arizona 0 1216 395 1611 1775 -2076 -2603
41 Arkansas 0 220 158 378 3494 -979 -503
13 California 5029 4301 2208 11538 1190 -793 -1161
26 Colorado 0 888 267 1155 1924 -2539 -1012
31 Connecticut 234 146 309 689 2158 -5238 -5834
8 Delaware 202 171 53 426 957 -819 1123
District of Columbia 5 37 2 44 6780 23846 52857
3 Florida 3576 7373 4844 15793 570 -1496 -3469
17 Georgia 0 1881 1014 2895 1414 1135 -2834
39 Hawaii 61 47 87 195 2678 598 773
5 Idaho 523 185 56 764 877 2797 11105
7 Illinois 2676 1649 1515 5840 906 -1917 -1051
4 Indiana 1225 1270 721 3216 871 1798 2289
21 Iowa 453 210 138 801 1674 6182 -3223
22 Kansas 231 347 139 717 1723 2535 5689
34 Kentucky 102 534 209 845 2284 4322 1544
27 Louisiana 272 444 297 1013 1949 846 -3494
37 Maine 127 86 62 275 2625 -3514 -5150
1 Maryland 1650 1520 1061 4231 564 1010 -087
32 Massachusetts 746 373 156 1275 2203 897 5269
16 Michigan 746 2178 1030 3208 1412 1154 484
40 Minnesota 0 470 315 785 2999 -2758 -1771
45 Mississippi 0 180 57 237 5390 -1350 33091
35 Missouri 0 706 352 1058 2565 -3424 -1314
49 Montana 0 26 19 45 10740 -1818 -2857
44 Nebraska 71 64 42 177 4521 -2063 11325
2 Nevada 1079 609 381 2069 569 687 1184
43 New Hampshire 0 93 53 146 4214 -4983 -6507
6 New Jersey 2283 1293 406 3982 895 -833 -1721
29 New Mexico 253 80 91 424 2128 -921 -1452
25 New York 3251 702 524 4477 1812 416 1948
10 North Carolina 2234 1107 657 3998 1088 053 10020
50 North Dakota 0 3 2 5 64942 6667 6667
9 Ohio 1480 2138 1505 5123 1000 -739 -590
33 Oklahoma 151 402 201 754 2215 2715 -157
12 Oregon 451 689 326 1466 1144 3512 7663
15 Pennsylvania 1299 1915 853 4067 1368 1118 860
42 Rhode Island 0 77 52 129 3585 -5770 -5257
11 South Carolina 872 734 293 1899 1129 717 -1364
47 South Dakota 0 22 24 46 7950 5862 222
23 Tennessee 0 1246 366 1612 1750 -1801 7315
28 Texas 3 3585 1185 4773 2110 1175 -033
20 Utah 173 366 96 635 1557 -2616 -2275
48 Vermont 0 22 12 34 9498 2143 12667
38 Virginia 0 965 315 1280 2642 -2228 -008
18 Washington 88 1316 637 2041 1421 -078 287
46 West Virginia 0 17 100 117 7529 12075 10526
19 Wisconsin 893 474 357 1724 1523 622 -3205
36 Wyoming 0 74 27 101 2604 5538 1744
February 2015 State-by-State Foreclosure Activity Summary
Rank Metro
Housing Units Per
Foreclosure Filing (Rate)
1 Tampa FL 495
2 Miami FL 539
3 Baltimore MD 547
4 Riverside CA 630
5 Chicago IL 721
6 Philadelphia PA 903
7 Washington DC 1113
8 Seattle WA 1213
9 Atlanta GA 1284
10 Los Angeles CA 1316
11 San Diego CA 1335
12 Detroit MI 1356
13 New York NY 1411
14 St Louis MO 1483
15 Phoenix AZ 1733
16 Dallas TX 1799
17 Minneapolis MN 2000
18 Houston TX 2155
19 San Francisco CA 2182
20 Boston MA 2763
TOP 20 Foreclosure rates in the
Nationrsquos 20 largest metros in February 2015
Housing News Report is a monthly publication dedicated to helping investors succeed by providing them with timely and relevant information about the housing market
EXECUTIVE EDITORDaren Blomquist
MANAGING EDITOROctavio Nuiry
WRITERSDaren Blomquist Octavio Nuiry Peter Miller
ART DIRECTIONEunice Seo
CONTACT USPhone 8003069886
LETTERS TO THE EDITORE-mail editorforeclosurenewsreportcomMail Housing News Report 1 Venture Plaza Suite 300 Irvine CA 92691
10
MARCH 2015
Trulia Will Lose Listing Data in April The online battle between Move Inc and Zillow Group flared up again
Listing syndicator ListHub will stop supplying listings on April 7 giving the nationrsquos second largest real estate listing site less than a month to find an alternative source for more than a quarter of its listings
On Feb 23 a San Francisco judge granted Trulia Inc a temporary restraining order to keep receiving listings data from ListHub
ListHub mdash which is owned by realtorcom and operated by Move Inc a News Corp subsidiary mdash announced Feb 20 that it had terminated its syndication agreement with Trulia in the wake of its acquisition by Zillow and would stop sending listings to Trulia on Feb 26
According to a copy of Truliarsquos complaint obtained by Inman News Trulia which could lose 25 percent of its listings data filed a 52-page complaint against Move Inc in San Francisco Superior Court claiming breach of contract Judge Ernest H Goldsmith scheduled a March 12 court hearing to determine whether or not to compel Move to abide by the original June 19 2016 termination date of its agreement with Trulia
Both Zillow and Trulia will lose listing information from ListHub when the contract between those two entities expires
SOURCES Inman News Courthouse News
W Va Supreme Court Rules in Favor of MERS On February 5 the Supreme Court of Appeals of West Virginia held that the recording of trust deeds do not have to be recorded at the office of the clerk of the county commission
In State of W Va v Waren McGraw the Court disagreed with Wyoming Countyrsquos claims that the recording of trust deed assignments in county record books is required by state law ldquoin order to clear title to properties in the Countiesrdquo While the Counties did not name MERSCORP Holdings Inc or Mortgage Electronic Registrations Systems Inc (MERS) as a defendant in the case the allegations in the complaint were focused on challenging the operations of MERS and the MERSreg System
In his opinion West Virginia Supreme Court of Appeals Justice Menis E Ketchum II said that ldquorecording statutes in West Virginia do not require that the assignment of a trust deed be recorded in the office of the clerk of the county commissionrdquo
SOURCE W Va v Warren McGraw
MetLife Fined $123M for Bad LoansMetLife will cough up $1235 million to settle claims that it knowingly approved federally insured home loans for people who didnrsquot qualify according to the US Justice Department
As part of the settlement MetLife Home Loans admitted that its predecessor mdash MetLife Bank mdash repeatedly certified for Federal Housing Administration insurance on mortgage loans that didnrsquot meet federal underwriting requirements between 2008 and 2012
Furthermore MetLife admitted that the bank knew a large number of the loans were not eligible for FHA mortgage insurance through its own quality control practices Between 2009 and 2010 the bank discovered that anywhere from 25 to 60 percent of these loans were seriously deficient mdash findings that were regularly shared with the bankrsquos CEO and its directors the Justice Department said
Over a two-year period the bank self-identified 1097 mortgages insured by the FHA that were seriously deficient but only reported 321 of them to the Department of Housing and Urban Development As a result FHA insured hundreds of home loans that werenrsquot eligible mdash causing the agency to suffer serious losses when it later paid insurance claims on the loans
ldquoMetLife Bankrsquos improper FHA lending practices not only wasted taxpayer funds but also inflicted harm on homeowners and the housing market that lasts to this dayrdquo said Acting Assistant Attorney General Joyce R Branda of the Justice Departmentrsquos Civil Division ldquoAs this settlement shows we will continue to hold accountable financial institutions that elected to ignore the rules and to pursue their own financial interests at the expense of hardworking Americansrdquo
SOURCE Justice Department
LEGAL BRIEFS
11
MARCH 2015
Housing Rising Student Loan DebtGrowing student loan debt is weighing down on an already tepid housing market according to fresh data from the New York Federal Reserve Rising student loan debt is shutting out potential buyers A new report from the Federal Reserve shows that student loan debt rose in the fourth quarter of 2014 to a record $116 trillion dollars Thatrsquos 7 percent higher than the year before And delinquencies are rising too with current default rates at more than 11 percent Historically first-time home buyers are people in their 20s and 30s but this same age group is carrying a majority of that $116 trillion in loan debt According to the Fed the rising student loan debt is decreasing both household formation and home ownership Labor market growth and higher wages will help shrink student loan debt according to economists
Rents New York Rents Too HighNew Yorkers are now spending approximtely 60 percent of their income to live in Manhattan according to a new study by the website Streeteasy The median monthly New York rent hit $2700 mdash or more than 58 percent of residentsrsquo median income Residents in Brooklyn pay the highest median rent cost mdash 60 percent Surprisingly Manhattanites arenrsquot the worst off Residents in Brooklyn pay the highest median rent cost mdash 60 percent They are followed by those living in the Bronx at 52 percent Manhattan at 49 percent Queens at 41 percent and Staten Island at 30 percent
Trends Millennials Lead All BuyersThe millennial generation represented the largest share of recent home buyers according to a new report from the National Association of Realtors The 2015 National Association of Realtors ldquoHome Buyer and Seller Generational Trends Reportrdquo found that an overwhelming majority of buyers search for homes online and then purchase their home through a real estate agent with millennials also known as Gen Y using agents the most With millennials entering the peak buying period and expected to soon surpass boomers in total population the NAR believes the share of millennial purchases would be higher if not for the numerous obstacles that have slowed their journey to homeownership
Study Consumer Confidence Grows Consumer optimism toward the economy is growing and appears to be contributing to further improvement in overall housing sentiment according to Fannie Maersquos National Housing Survey Most consumers expect home rental prices to continue to rise in the next year but 43 percent still think it is too difficult to get a mortgage the survey found The share of respondents who believe the economy is headed in the right direction increased 3 percentage points in February to an all-time survey high of 47 percent while the those who believe it is headed in the wrong direction decreased to 45 percent a new survey low ldquoWe continue to see strength in attitudes about the current home buying and selling environment and consistently high shares of consumers saying they expect to buy a home on their next moverdquo said Doug Duncan senior vice president and chief economist at Fannie Mae
Tech Smart Homes Sell Faster As smart home technology plays a larger role in real estate Coldwell Banker Real Estate LLC recently released a survey uncovering what smart features home buyers are looking for when purchasing a home and how those features impact a home sale Coldwell Banker also published a list of 25 smart home products and systems in the categories that matter most to buyers A survey of 500 Coldwell sales associates found that 62 percent of buyers want to control their home from their smart phone or tablet One third (33 percent) said that homes with smart home technology sell faster than homes without them Gen X (age 35-49) is the ldquosmartestrdquo generation of home buyers interested in smart home technology today the survey found
Study Remodeling RecoveryThe $300 billion US home improvement industry is faring much better than the broader housing market according to a new report from the Joint Center for Housing Studies of Harvard University ldquoEmerging Trends in the Remodeling Marketrdquo is the latest in the Improving Americarsquos Housing series published by the Joint Center While new home construction is many years away from full recovery the Center reports that Americarsquos home improvement industry could post record-level spending in 2015 with kitchen and bath upgrades leading the way
FINANCIAL BRIEFS
12
MARCH 2015
By Octavio Nuiry Managing Editor
North Carolina Teeing Up Real Estate in the Tar Heel State
In the game of golf an eagle mdash two strokes under par mdash is good news
In the real estate game buying a home located on a golf course is like sinking a housing eagle Not only do you waking up every morning to the possibility of golfing every day but many golf communities are attractive to buyers because of their safety beauty and quality of life
In 2013 Americans bought 717000 vacation homes up 30 percent from a year earlier and proximity to a golf course was a decisive factor for a third of the buyers according to the National Association of Realtorsrsquo 2014 Investment and Vacation Buyers Survey The median price of a vacation home in 2013 was $168700 up 125 percent from 2012
In the Tar Heel State golf and real estate are frequently tied together In North Carolina the vast geographical diversity provides golf home buyers with a wide choice of locations whether coastal inland or mountain From the shores of the Outer Banks to the rolling hills of the Black Mountains golf courses pepper the statersquos landscape Nearly 50 years after Hilton Head Island SC ushered in the first master-planned golf home community North Carolina is slowly recovering from the housing downturn
According to David Lott publisher and founder of Golfcoursehomenet golf communities were hit hard during the recent housing downturn Lott said since the recession the number of courses closing has outnumbered the courses opening He said North Carolina golf communities are slowly rebounding Golf communities in the remote western mountains
Continued Next Page
STATE SPOTLIGHT
Where Most of the Properties Come With a Club Membership AttachedTHREE FOR SALE
Resort community living at its finest in this beautiful all brick three bedroom home on a private wooded lot with wa-ter views and transferable Pinehurst Country Club membership (the buyer pays half initiation fee to join) Agent Sue Boynton Pinehurst Resort Realty (704) 564-8139 wwwpinehurstresort-realtycom
Built in 2006 this brick home on the 18th fairway of the Beacon Ridge golf course has four bedrooms and three baths Club membership attached Agent Dawn Crawley Pinehurst Resort Realty (910) 783-7993 wwwpinehurstresortre-altycom
Located on Pinehurst No 2 golf course this home has four bedrooms and five baths and is walking distance to the His-toric Village of Pinehurst The home is located in Pinehurstrsquos prestigious gated community Fairwoods 7 Agent Marga-ret Chirichingo Pinehurst Resort Realty (704) 564-8139 wwwpinehurstresortre-altycom
WHAT 3-bedroom homeHOW MUCH $225000
WHAT 4-bedroom houseHOW MUCH $399000
WHAT 4-bedroom homeHOW MUCH $1499000
13
MARCH 2015
of North Carolina were hit hardest Lott said
ldquoThe recovery started on the shores of the Atlantic and is slowly working its way inlandrdquo said Lott a former reporter for Golf Digest referring to the westward movement of North Carolinarsquos golf real estate recovery ldquoThe pace of the recovery is going to be different in the various geographical areas The mountain areas are still having the most troublerdquo
During the recent real estate boom developers and home buyers believed residential golf communities were a sure-fire bet Many buyers purchased properties to flip for a quick profit Others were lured for the country club amenities stunning views and security of the gated communities While there are no reliable data on the growth of master-planned golf communities real estate brokers and market analysts say the market is slowly recovering
Clearly the recession of 2008 sliced the growth of golf communities into the rough According to the National Golf Foundation only 14 new courses opened in the United States in 2014 the fewest in 25 years while almost 160 of the countryrsquos 14600 18-hole golf facilities shut down Last year marked the eight straight year that more courses closed than opened
Pinehurst Central North Carolina At Pinehurst (No 2) the luxurious golferrsquos resort in the arid sand hills of south-central North Carolina housing prices remain comparatively reasonable considering that most of the property in Pinehurst comes with a membership to Pinehurst Country Club Pinehurst and its surrounding communities mdash known locally as ldquothe Sandhillsrdquo mdash is located in Moore County Pinehurst is transiting from a playground for retirees into a younger family-friendly resort according to Sue Boynton an associate broker with Pinehurst Resort Realty in Pinehurst NC
ldquoA lot of the buyers here in Pinehurst are from the northeastrdquo said Boynton an avid golfer who lives in the Doral Woods golf community in Pinehurst ldquoBut there are a lot from Charlotte toordquo
As one of the countryrsquos first golf resorts Pinehurst is viewed as the cradle of the sport Pinehurst which ranks 16th on Golf Magazinersquos list of Top 100 Courses in the World is located 60 miles southwest of Raleigh No golf community in America is as rich in golf history as Pinehurst which is home to 42 golf courses many of them world renowned Last year for example the 120-year old Pinehurst resort hosted two of golfrsquos greatest stateside productions mdash the US Menrsquos Open and the Womenrsquos Open Golfers Vickie and David Bowles who purchased a historic home on the tee box of hole 5 on Pinehurst (No 2) in 2013 said they enjoy the layback atmosphere of the Pinehurst Village ldquoOne thing I love about Pinehurst is that I get to spend time with my husbandrdquo said Vickie Bowles referring to time together on the links with her husband David ldquoI had to learn golf and he had to
learn how to snow ski The weather is exceptional and the wersquore close to the mountains and the beaches of North Carolinardquo Built in 1895 on 5500 acres of the Sandhills region of North Carolina the Village of Pinehurst was originally developed as a health resort for patients recovering from tuberculosis As the popularity of North Carolina has surged so have real estate prices Home sites of $600000 are common And homes priced above $5 million donrsquot turn heads Boynton said She said most of the Pinehurst properties come with a membership to the Pinehurst Country Club Property ownership is the only requirement for membership said Bowles
ldquoPinehurst Resort is uniquerdquo said Boynton ldquoIf somebody loves golf Pinehurst is the place to be Itrsquos becoming a neighborhood-friendly community It is
Continued Next Page
David LottFounderPublisher
GolfCourseHomecom Vineyard Haven Mass
The recovery started on the shores of the Atlantic and is slowly
working its way inland The pace of the recovery is going to be different in the various geographical areas The
mountain areas are still having the most
trouble
14
MARCH 2015
increasingly transitioning to younger familiesrdquo
To become a member of the Pinehurst Country Club you have to own property in Pinehurst said Boynton Pinehurst home buyers are required to pay a $12500 transfer fee which is often included in the purchase price and $381 in monthly dues
ldquoPeople are still buyingrdquo said Boynton citing that people from all over the world come to Pinehurst and nearby Southern Pines to play golf and ride horses The area is rural with horse properties and farms Increasingly she said non-golfers are buying in golf communities
According to a survey conducted by Better Homes and Gardens Real Estate 57 percent of baby boomers say they plan to move to a new home in retirement When asked which type of community they were likely to choose 39 percent said a small town like Pinehurst or a rural community The next choice was a 55-and-older community (27 percent) followed by urban living (26 percent) and 25 percent said they would buy a second home such as a vacation beach house or a golf course community
Golf went mainstream in America in the 1890s according to Richard J Moss author of ldquoThe Kingdom of Golf in Americardquo a rich and colorful history of the sport Its popularity and its fortune has waxed and waned in response to larger economic events As America prospered in the 20th century public courses opened alongside private clubs and exposed more people to the sport Between 1992 and 2001
at least 60 percent of new golf courses were tied to property developments writes Moss Golf courses increase the value of surrounding homes and developers built long complicated courses with the hope of attracting tournaments and selling more homes
Moss points out that golf and real estate deals have always been connected Nationwide approximately 60 percent of golf courses are linked to real estate development claims Moss Courses came to be designed with premium-priced houses bordering fairways similar to houses bordering beaches
Moss believes that neither the recession nor the eclipse of its brightest star can stymie professional golf Today according to Moss there are roughly 16000 golf courses in America half or more of the golf courses in the world Average prize money for a PGA Tour event doubled between 2000 and 2010 from $33 million to $6 million reports
Continued Next Page
If somebody loves golf Pinehurst is the place to be Itrsquos becoming a
neighborhood-friendly community It is
increasingly transitioning to younger families
Sue BoyntonAssociate Broker
Pinehurst Resort Realty Pinehurst NC
Pinehurst Resort amp Country Club - No 4 Pinehurst NC
15
MARCH 2015
the Economist In 2014 professional golfers were some of the highest paid athletes in America Phil Mickelson the amiable left-hander ranked 6th nationwide making $37 million according to Fortune Magazine Tiger Woods despite his back problems and not winning a major tournament since 2008 ranked 7th pulling in $35 million
According to the latest list of Golf Digestrsquos top 100 public and private golf courses in the US five North Carolina courses make the cut Leading the list is Tom Fazio-designed Wade Hampton Gold Club in Cashiers NC Pinehurst No 2 was the next highest course ranked on the list coming in at 28 on the list Rounding out the top five are all Fazio designs including Mountain Golf and Lake Club in Cashiers (No 78) Eagle Point Golf Club in Wilmington (No 89) and Diamond Creek Golf Club in Banner Elk (No 94)
Western North Carolina In the mile-high mountains of western North Carolina some of the best golf real estate is found atop the famed Blue Ridge Mountains the tallest peaks of the eastern United States
ldquoOur area is considered the worldrsquos premier mountain golf mecca with two of the top three mountain golf clubs in the world Wade Hampton Golf Club and Mountaintop Golf and Lake Clubrdquo said Bill Kruckenberger brokerowner of Sapphire Valley Real Estate in Sapphire NC ldquoBoth are Fazio courses also considered to be in the top 100 courses worldwide There are a ton of high-end mountain golf courses on our very small mountain plateau (including Bobby Jones summer club Highlands Country Clubrdquo
Kruckenberger knows a thing or two about golf Although hersquos not a golfer he sold the arearsquos public golf course Sapphire National Golf Club not once mdashbut twice
Continued Next Page
Bill KruckenbergerBrokerOwner
Sapphire Valley Real Estate
Sapphire NC
Our area is considered the worldrsquos premier mountain golf mecca with two of the
top three mountain golf clubs in the world
Perched 4400 feet atop the Blue Ridge Mountains buyers can enjoy big moun-tain views from this three bedroom and 3 bath Sapphire Valley Resort home Membership in the Sapphire National Golf Club is included Agent Bill Kruck-enberger Sapphire Valley Real Estate (828) 506-8398 httpwwwsapphirev-alleypropertiescom
WHAT 3-bedroom homeHOW MUCH $585000
This custom golf community home has five bedrooms and three baths Located minutes from Asheville this home is a golfers dream Agent Jeff Stewart Keller Williams Professionals (828) 337-8837 httpwwwbrokerjeffnet
WHAT 5-bedroom houseHOW MUCH $484900
Located on Wade Hamptonrsquos 8 fairway this two-story home has five bedrooms and seven baths and is walking dis-tance to the clubhouse This golf-front mountain home is located in township of Cashiers NC in a prestigious gated community Agent Bill Kruckenberger Sapphire Valley Real Estate (828) 506-8398 httpwwwsapphirevalleyproper-tiescom
WHAT 5-bedroom homeHOW MUCH $2975000
THREE FOR SALE Western North Carolina Golf Homes
16
MARCH 2015Nestled 4000 feet in the Great Smoky Mountains the golfing community of Wade Hampton is a luxury North Carolina mountain real estate golf community 65 miles southwest of Asheville
Kruckenberger has a healthy business selling to second-home buyers and retirees and renting many of those homes out to vacationers He said home prices at Wade Hampton range from $700000 for a cottage to $5 million At Sapphire National Golf Club a two-
bedroom condominium sells for $150000 and homes can sell as high as $5 million
ldquoOur area is 90 percent second-home buyersrdquo he said ldquoA good number are retirees Most buyers are out of state Florida is the number one source of buyers in our area They come to escape the heat in Florida and enjoy the cool mountain air We have a good number of buyers from South Carolina and Georgia And Texans are coming in drovesrdquo
Coastal North Carolina Increasingly golf communities offer a country club experience with swimming tennis spas fine dining and waterfront homes Maritime golf real estate resorts abound along North Carolinarsquos Atlantic coast In southeastern North Carolina along the statersquos 300-mile Atlantic coast some top-notch golf resorts await buyers who like seaside second home properties according Vance Young a broker with Intracoastal Realty in Wrightsville Beach NC
Young said coastal golf home buyers are seeking other amenities beside golf
Continued Next Page Wade Hampton Golf Club Cashiers NC
17
MARCH 2015ldquoAs far as general trends I do see and emphasis on location good shopping access to medical care and transportationrdquo said Young a top producer who sold 125 homes last year for $81 million in sales ldquoBuyers are becoming more demanding and more selective These additional amenities have become critically important the last few yearsrdquo
At Landfall a 2200 acre gated development with 1600 homes nestled along the coast near Wrightsville Beach and Figure Eight Island just nine miles northeast of Wilmington NC buyers can enjoy golf homes at the Country Club of Landfall which offers 45 holes of championship golf 27 designed by Jack Nicklaus and 18 crafted by Peter Dye said Young
Young said buyers are attracted by Wilmington NC the riverfront community along Cape Fear River which features a Riverwalk with over 200
restaurants and shops
In Landfall a golf course townhomes start at $300000 and go up to $700000 he said Single family homes range from $500000 to $5 million The closer you are to the beach the more expensive the homes become
ldquoMost of the residents of Landfall mdash 85 to 90 percent mdash are primary residentsrdquo said Young the No 1 ranked broker in Hanover County who specialize in waterfront and golf resort communities of Wrightsville Beach Figure Eight Island and Landfall ldquoBut we also have a large contingent of second-home owners who come largely from the east coast especially Virginia DC New York and New Jerseyrdquo
As American golf enters the second century of existence it faces a supply-and-demand dilemma too many courses and not enough players But in North Carolina golf real estate is soaring like an eagle
Coastal North Carolina Golf Homes
Vance YoungBroker
Intracoastal RealtyWrightsville Beach NC
As far as general trends I do see an emphasis on location good shopping access to medical care
and transportation
Overlooking the second tee of the Jack Nicklaus golf course at the Country Club of Landfall this beautiful four bedroom five bath Landfall NC French Country inspired design home has a pool and is move-in ready Agent Vance Young In-tracoastal Realty Corp (910) 232-8850 httpVanceYoungcom
This Landfall brick home has four bed-rooms and four baths wit 10 foot ceil-ings and 8 foot doors throughout This Steve Dunn built home is walking dis-tance to the Country Club of Landfall Agent Vance Young Intracoastal Re-alty Corp (910) 232-8850 httpVanc-eYoungcom
WHAT 4-bedroom homeHOW MUCH $769000
Built in 2006 this brick home overlooks the Jack Nicklaus Pines 4 fairway in Landfall NC It has three bedrooms and four baths The home features granite kitchen stainless appliances and a five burner gas range Agent Alison Bern-hart Landfall Realty LLC (800) 227-8208 httpwwwlandfallrealtycom
WHAT 3-bedroom houseHOW MUCH $689000
WHAT 4-bedroom homeHOW MUCH $1199900
THREE FOR SALE
18
MARCH 2015BOOK REVIEWThe GM Building New Yorkrsquos Most Sought After PropertyBy Octavio Nuiry Managing Editor
The General Motors Building isnrsquot the most iconic building in New York City Nor is it the tallest or most elegant But something about the glemming 50-story white marble tower that real estate tycoons canrsquot resist
In ldquoThe Liarrsquos Ball The Extraordinary Saga of How One Building Broke the Worldrsquos Toughest Tycoonsrdquo (Wiley 2014) Vicky Ward lifts the veil on New York Cityrsquos cutthroat world of high-stakes real estate shining the
spotlight on the half-century fight to own one of Americarsquos most desired pieces of real estate the General Motors Building on 5th Avenue in Manhattan
The book largely tells the tragic rise-and-fall of flamboyant New York real estate developer Harry Macklowe who in 2003 engineered the biggest real estate transaction in US history when he bought the GM Building for an unprecedented $14 billion in borrowed funds
Not only does Ward chronicle Macklowersquos recklessness but the book also is an entertaining behind the scenes glimpse at a cast of high-powered New York City real estate tycoons who lie cheat steal mdash and sue each other mdash to acquire NYC trophy properties
The colorful book which spans 150 years of New York real estate history not only documents the history of the GM Building
but some of its flowery suitors including the corrupt politician William ldquoBossrdquo Tweed Cecila Banatter the ldquohousewife tycoonrdquo too busy to name her baby Max Rayne the English property developer who snapped up the iconic Savoy-Plaza Hotel (site of the future GM Building) Disque D Deane the unlovable rogue financier Rita Jenrette Harry Macklowe and Donald Trump She shows how grown men mdash and some powerful women mdash behave like children when their toys are taken away from them
Built by General Motors for corporate offices and a show room on the southeast corner of Central Park in 1968 the GM Building is not New Yorkrsquos tallest skyscraper or most beautiful but it is
desirable in the real estate world for its location across from the Plaza Hotel But itrsquos an iconic trophy tower mdash the most expensive office tower in America mdash that occupys an entire city block and has brought out the worst in a string of landlords from Bill Zeckendorf to Harry Macklowe writes Ward General Motors Co later sold the building but maintained a sizeable presence as a tenant for years
The bookrsquos title comes from the annual black tie gala that the Real Estate Board of New York throws itself every January at the Hilton Grand Ballroom
ldquoEvery year toward the end of January around 2000 members of the New York real estate industry gather at the Hilton to celebrate hellip an event affectionately known by its attendees as lsquothe
Liarrsquos Ballrdquo writes Ward ldquoItrsquos rough itrsquos vulgar and itrsquos a riveting showrdquo
Ward is a New York-based British-born investigative journalist and former contributing editor at Vanity Fair
In 1998 Donald Trump teamed up with financial services company Conseco to buy the building for $878 million from GM which relocated back to Detroit Trump cleaned up the white marble
The Liarrsquos BallBy Vicky Ward
(Wiley 240 pages $2995)
Continued Next Page
Every year toward the end of January around 2000 members of the New York
real estate industry gather at the Hilton to celebrate hellip an event affectionately known
by its attendees as lsquothe Liarrsquos Ball Itrsquos rough itrsquos vulgar and
itrsquos a riveting show
Vicky Ward Author
ldquoThe Liarrsquos Ballrdquo
19
MARCH 2015
walls put in new granite floors emblazed his name on the front of the building and raised rents By 2001 Trump had a chance to buy the entire building for $995 million but he hesitatedTrumprsquos loss was Macklowersquos gain In 2003 Macklowe bought the GM Building from Trump and Conseco for a then-record price of $14 billion Soon Macklowe convinced Steve Jobs then CEO of Apple to open a subterranean flagship store with a glass cube in front of the GM Building It opened in 2006 and was a retail success Now the Apple Store is one of New Yorkrsquos major retail locations
ldquoFor four year Macklowe was riding high after his unexpected success with the GM Building where his visionary ideas mdash including the creation of the iconic Apple flagship store in the basement mdash created $1 billion in valuerdquo writes Ward
Soon however Macklowersquos luck ran out
Convinced he could pull off an even bigger deal Macklowe put
the building up as collateral for a $72 billion loan but the market turned and Macklowe lost the GM Building He sold the building for $28 billion in 2008
The $28 billion price tag remains the highest price ever paid for a single office building in the US
Today the General Motors Building is owned by Boston Properties (which controls 60 percent of the ownership) Chinese developer Zhang Xin and Brazilrsquos Safra Group (each owning a 20 percent stake) The latest deal values the property at $34 billionBut not everyone is a fan of the book
Donald Trump told the New York Post that ldquothe book doesnrsquot capture the essence the glamour or excitement of what happenedrdquo On Twitter Trump wrote ldquoJust finished reading a poorly written and very boring book on the GM Buildingrdquo calling Ward a ldquothird rate writerrdquo
The General Motors Building
DOWNLOAD REALTYTRACrsquoS FREE 2014 GUIDE TO SHORT SALES
State Rank
State Default Auction REO Total 1every X HU (rate)
Δ from Jan 2015
Δ from Feb 2014
US Total 31753 45880 24305 101938 1295 -429 -939
14 Alabama 0 1370 312 1682 1295 6555 2359
30 Alaska 60 59 24 143 2144 1917 2222
24 Arizona 0 1216 395 1611 1775 -2076 -2603
41 Arkansas 0 220 158 378 3494 -979 -503
13 California 5029 4301 2208 11538 1190 -793 -1161
26 Colorado 0 888 267 1155 1924 -2539 -1012
31 Connecticut 234 146 309 689 2158 -5238 -5834
8 Delaware 202 171 53 426 957 -819 1123
District of Columbia 5 37 2 44 6780 23846 52857
3 Florida 3576 7373 4844 15793 570 -1496 -3469
17 Georgia 0 1881 1014 2895 1414 1135 -2834
39 Hawaii 61 47 87 195 2678 598 773
5 Idaho 523 185 56 764 877 2797 11105
7 Illinois 2676 1649 1515 5840 906 -1917 -1051
4 Indiana 1225 1270 721 3216 871 1798 2289
21 Iowa 453 210 138 801 1674 6182 -3223
22 Kansas 231 347 139 717 1723 2535 5689
34 Kentucky 102 534 209 845 2284 4322 1544
27 Louisiana 272 444 297 1013 1949 846 -3494
37 Maine 127 86 62 275 2625 -3514 -5150
1 Maryland 1650 1520 1061 4231 564 1010 -087
32 Massachusetts 746 373 156 1275 2203 897 5269
16 Michigan 746 2178 1030 3208 1412 1154 484
40 Minnesota 0 470 315 785 2999 -2758 -1771
45 Mississippi 0 180 57 237 5390 -1350 33091
35 Missouri 0 706 352 1058 2565 -3424 -1314
49 Montana 0 26 19 45 10740 -1818 -2857
44 Nebraska 71 64 42 177 4521 -2063 11325
2 Nevada 1079 609 381 2069 569 687 1184
43 New Hampshire 0 93 53 146 4214 -4983 -6507
6 New Jersey 2283 1293 406 3982 895 -833 -1721
29 New Mexico 253 80 91 424 2128 -921 -1452
25 New York 3251 702 524 4477 1812 416 1948
10 North Carolina 2234 1107 657 3998 1088 053 10020
50 North Dakota 0 3 2 5 64942 6667 6667
9 Ohio 1480 2138 1505 5123 1000 -739 -590
33 Oklahoma 151 402 201 754 2215 2715 -157
12 Oregon 451 689 326 1466 1144 3512 7663
15 Pennsylvania 1299 1915 853 4067 1368 1118 860
42 Rhode Island 0 77 52 129 3585 -5770 -5257
11 South Carolina 872 734 293 1899 1129 717 -1364
47 South Dakota 0 22 24 46 7950 5862 222
23 Tennessee 0 1246 366 1612 1750 -1801 7315
28 Texas 3 3585 1185 4773 2110 1175 -033
20 Utah 173 366 96 635 1557 -2616 -2275
48 Vermont 0 22 12 34 9498 2143 12667
38 Virginia 0 965 315 1280 2642 -2228 -008
18 Washington 88 1316 637 2041 1421 -078 287
46 West Virginia 0 17 100 117 7529 12075 10526
19 Wisconsin 893 474 357 1724 1523 622 -3205
36 Wyoming 0 74 27 101 2604 5538 1744
February 2015 State-by-State Foreclosure Activity Summary
Rank Metro
Housing Units Per
Foreclosure Filing (Rate)
1 Tampa FL 495
2 Miami FL 539
3 Baltimore MD 547
4 Riverside CA 630
5 Chicago IL 721
6 Philadelphia PA 903
7 Washington DC 1113
8 Seattle WA 1213
9 Atlanta GA 1284
10 Los Angeles CA 1316
11 San Diego CA 1335
12 Detroit MI 1356
13 New York NY 1411
14 St Louis MO 1483
15 Phoenix AZ 1733
16 Dallas TX 1799
17 Minneapolis MN 2000
18 Houston TX 2155
19 San Francisco CA 2182
20 Boston MA 2763
TOP 20 Foreclosure rates in the
Nationrsquos 20 largest metros in February 2015
Housing News Report is a monthly publication dedicated to helping investors succeed by providing them with timely and relevant information about the housing market
EXECUTIVE EDITORDaren Blomquist
MANAGING EDITOROctavio Nuiry
WRITERSDaren Blomquist Octavio Nuiry Peter Miller
ART DIRECTIONEunice Seo
CONTACT USPhone 8003069886
LETTERS TO THE EDITORE-mail editorforeclosurenewsreportcomMail Housing News Report 1 Venture Plaza Suite 300 Irvine CA 92691
11
MARCH 2015
Housing Rising Student Loan DebtGrowing student loan debt is weighing down on an already tepid housing market according to fresh data from the New York Federal Reserve Rising student loan debt is shutting out potential buyers A new report from the Federal Reserve shows that student loan debt rose in the fourth quarter of 2014 to a record $116 trillion dollars Thatrsquos 7 percent higher than the year before And delinquencies are rising too with current default rates at more than 11 percent Historically first-time home buyers are people in their 20s and 30s but this same age group is carrying a majority of that $116 trillion in loan debt According to the Fed the rising student loan debt is decreasing both household formation and home ownership Labor market growth and higher wages will help shrink student loan debt according to economists
Rents New York Rents Too HighNew Yorkers are now spending approximtely 60 percent of their income to live in Manhattan according to a new study by the website Streeteasy The median monthly New York rent hit $2700 mdash or more than 58 percent of residentsrsquo median income Residents in Brooklyn pay the highest median rent cost mdash 60 percent Surprisingly Manhattanites arenrsquot the worst off Residents in Brooklyn pay the highest median rent cost mdash 60 percent They are followed by those living in the Bronx at 52 percent Manhattan at 49 percent Queens at 41 percent and Staten Island at 30 percent
Trends Millennials Lead All BuyersThe millennial generation represented the largest share of recent home buyers according to a new report from the National Association of Realtors The 2015 National Association of Realtors ldquoHome Buyer and Seller Generational Trends Reportrdquo found that an overwhelming majority of buyers search for homes online and then purchase their home through a real estate agent with millennials also known as Gen Y using agents the most With millennials entering the peak buying period and expected to soon surpass boomers in total population the NAR believes the share of millennial purchases would be higher if not for the numerous obstacles that have slowed their journey to homeownership
Study Consumer Confidence Grows Consumer optimism toward the economy is growing and appears to be contributing to further improvement in overall housing sentiment according to Fannie Maersquos National Housing Survey Most consumers expect home rental prices to continue to rise in the next year but 43 percent still think it is too difficult to get a mortgage the survey found The share of respondents who believe the economy is headed in the right direction increased 3 percentage points in February to an all-time survey high of 47 percent while the those who believe it is headed in the wrong direction decreased to 45 percent a new survey low ldquoWe continue to see strength in attitudes about the current home buying and selling environment and consistently high shares of consumers saying they expect to buy a home on their next moverdquo said Doug Duncan senior vice president and chief economist at Fannie Mae
Tech Smart Homes Sell Faster As smart home technology plays a larger role in real estate Coldwell Banker Real Estate LLC recently released a survey uncovering what smart features home buyers are looking for when purchasing a home and how those features impact a home sale Coldwell Banker also published a list of 25 smart home products and systems in the categories that matter most to buyers A survey of 500 Coldwell sales associates found that 62 percent of buyers want to control their home from their smart phone or tablet One third (33 percent) said that homes with smart home technology sell faster than homes without them Gen X (age 35-49) is the ldquosmartestrdquo generation of home buyers interested in smart home technology today the survey found
Study Remodeling RecoveryThe $300 billion US home improvement industry is faring much better than the broader housing market according to a new report from the Joint Center for Housing Studies of Harvard University ldquoEmerging Trends in the Remodeling Marketrdquo is the latest in the Improving Americarsquos Housing series published by the Joint Center While new home construction is many years away from full recovery the Center reports that Americarsquos home improvement industry could post record-level spending in 2015 with kitchen and bath upgrades leading the way
FINANCIAL BRIEFS
12
MARCH 2015
By Octavio Nuiry Managing Editor
North Carolina Teeing Up Real Estate in the Tar Heel State
In the game of golf an eagle mdash two strokes under par mdash is good news
In the real estate game buying a home located on a golf course is like sinking a housing eagle Not only do you waking up every morning to the possibility of golfing every day but many golf communities are attractive to buyers because of their safety beauty and quality of life
In 2013 Americans bought 717000 vacation homes up 30 percent from a year earlier and proximity to a golf course was a decisive factor for a third of the buyers according to the National Association of Realtorsrsquo 2014 Investment and Vacation Buyers Survey The median price of a vacation home in 2013 was $168700 up 125 percent from 2012
In the Tar Heel State golf and real estate are frequently tied together In North Carolina the vast geographical diversity provides golf home buyers with a wide choice of locations whether coastal inland or mountain From the shores of the Outer Banks to the rolling hills of the Black Mountains golf courses pepper the statersquos landscape Nearly 50 years after Hilton Head Island SC ushered in the first master-planned golf home community North Carolina is slowly recovering from the housing downturn
According to David Lott publisher and founder of Golfcoursehomenet golf communities were hit hard during the recent housing downturn Lott said since the recession the number of courses closing has outnumbered the courses opening He said North Carolina golf communities are slowly rebounding Golf communities in the remote western mountains
Continued Next Page
STATE SPOTLIGHT
Where Most of the Properties Come With a Club Membership AttachedTHREE FOR SALE
Resort community living at its finest in this beautiful all brick three bedroom home on a private wooded lot with wa-ter views and transferable Pinehurst Country Club membership (the buyer pays half initiation fee to join) Agent Sue Boynton Pinehurst Resort Realty (704) 564-8139 wwwpinehurstresort-realtycom
Built in 2006 this brick home on the 18th fairway of the Beacon Ridge golf course has four bedrooms and three baths Club membership attached Agent Dawn Crawley Pinehurst Resort Realty (910) 783-7993 wwwpinehurstresortre-altycom
Located on Pinehurst No 2 golf course this home has four bedrooms and five baths and is walking distance to the His-toric Village of Pinehurst The home is located in Pinehurstrsquos prestigious gated community Fairwoods 7 Agent Marga-ret Chirichingo Pinehurst Resort Realty (704) 564-8139 wwwpinehurstresortre-altycom
WHAT 3-bedroom homeHOW MUCH $225000
WHAT 4-bedroom houseHOW MUCH $399000
WHAT 4-bedroom homeHOW MUCH $1499000
13
MARCH 2015
of North Carolina were hit hardest Lott said
ldquoThe recovery started on the shores of the Atlantic and is slowly working its way inlandrdquo said Lott a former reporter for Golf Digest referring to the westward movement of North Carolinarsquos golf real estate recovery ldquoThe pace of the recovery is going to be different in the various geographical areas The mountain areas are still having the most troublerdquo
During the recent real estate boom developers and home buyers believed residential golf communities were a sure-fire bet Many buyers purchased properties to flip for a quick profit Others were lured for the country club amenities stunning views and security of the gated communities While there are no reliable data on the growth of master-planned golf communities real estate brokers and market analysts say the market is slowly recovering
Clearly the recession of 2008 sliced the growth of golf communities into the rough According to the National Golf Foundation only 14 new courses opened in the United States in 2014 the fewest in 25 years while almost 160 of the countryrsquos 14600 18-hole golf facilities shut down Last year marked the eight straight year that more courses closed than opened
Pinehurst Central North Carolina At Pinehurst (No 2) the luxurious golferrsquos resort in the arid sand hills of south-central North Carolina housing prices remain comparatively reasonable considering that most of the property in Pinehurst comes with a membership to Pinehurst Country Club Pinehurst and its surrounding communities mdash known locally as ldquothe Sandhillsrdquo mdash is located in Moore County Pinehurst is transiting from a playground for retirees into a younger family-friendly resort according to Sue Boynton an associate broker with Pinehurst Resort Realty in Pinehurst NC
ldquoA lot of the buyers here in Pinehurst are from the northeastrdquo said Boynton an avid golfer who lives in the Doral Woods golf community in Pinehurst ldquoBut there are a lot from Charlotte toordquo
As one of the countryrsquos first golf resorts Pinehurst is viewed as the cradle of the sport Pinehurst which ranks 16th on Golf Magazinersquos list of Top 100 Courses in the World is located 60 miles southwest of Raleigh No golf community in America is as rich in golf history as Pinehurst which is home to 42 golf courses many of them world renowned Last year for example the 120-year old Pinehurst resort hosted two of golfrsquos greatest stateside productions mdash the US Menrsquos Open and the Womenrsquos Open Golfers Vickie and David Bowles who purchased a historic home on the tee box of hole 5 on Pinehurst (No 2) in 2013 said they enjoy the layback atmosphere of the Pinehurst Village ldquoOne thing I love about Pinehurst is that I get to spend time with my husbandrdquo said Vickie Bowles referring to time together on the links with her husband David ldquoI had to learn golf and he had to
learn how to snow ski The weather is exceptional and the wersquore close to the mountains and the beaches of North Carolinardquo Built in 1895 on 5500 acres of the Sandhills region of North Carolina the Village of Pinehurst was originally developed as a health resort for patients recovering from tuberculosis As the popularity of North Carolina has surged so have real estate prices Home sites of $600000 are common And homes priced above $5 million donrsquot turn heads Boynton said She said most of the Pinehurst properties come with a membership to the Pinehurst Country Club Property ownership is the only requirement for membership said Bowles
ldquoPinehurst Resort is uniquerdquo said Boynton ldquoIf somebody loves golf Pinehurst is the place to be Itrsquos becoming a neighborhood-friendly community It is
Continued Next Page
David LottFounderPublisher
GolfCourseHomecom Vineyard Haven Mass
The recovery started on the shores of the Atlantic and is slowly
working its way inland The pace of the recovery is going to be different in the various geographical areas The
mountain areas are still having the most
trouble
14
MARCH 2015
increasingly transitioning to younger familiesrdquo
To become a member of the Pinehurst Country Club you have to own property in Pinehurst said Boynton Pinehurst home buyers are required to pay a $12500 transfer fee which is often included in the purchase price and $381 in monthly dues
ldquoPeople are still buyingrdquo said Boynton citing that people from all over the world come to Pinehurst and nearby Southern Pines to play golf and ride horses The area is rural with horse properties and farms Increasingly she said non-golfers are buying in golf communities
According to a survey conducted by Better Homes and Gardens Real Estate 57 percent of baby boomers say they plan to move to a new home in retirement When asked which type of community they were likely to choose 39 percent said a small town like Pinehurst or a rural community The next choice was a 55-and-older community (27 percent) followed by urban living (26 percent) and 25 percent said they would buy a second home such as a vacation beach house or a golf course community
Golf went mainstream in America in the 1890s according to Richard J Moss author of ldquoThe Kingdom of Golf in Americardquo a rich and colorful history of the sport Its popularity and its fortune has waxed and waned in response to larger economic events As America prospered in the 20th century public courses opened alongside private clubs and exposed more people to the sport Between 1992 and 2001
at least 60 percent of new golf courses were tied to property developments writes Moss Golf courses increase the value of surrounding homes and developers built long complicated courses with the hope of attracting tournaments and selling more homes
Moss points out that golf and real estate deals have always been connected Nationwide approximately 60 percent of golf courses are linked to real estate development claims Moss Courses came to be designed with premium-priced houses bordering fairways similar to houses bordering beaches
Moss believes that neither the recession nor the eclipse of its brightest star can stymie professional golf Today according to Moss there are roughly 16000 golf courses in America half or more of the golf courses in the world Average prize money for a PGA Tour event doubled between 2000 and 2010 from $33 million to $6 million reports
Continued Next Page
If somebody loves golf Pinehurst is the place to be Itrsquos becoming a
neighborhood-friendly community It is
increasingly transitioning to younger families
Sue BoyntonAssociate Broker
Pinehurst Resort Realty Pinehurst NC
Pinehurst Resort amp Country Club - No 4 Pinehurst NC
15
MARCH 2015
the Economist In 2014 professional golfers were some of the highest paid athletes in America Phil Mickelson the amiable left-hander ranked 6th nationwide making $37 million according to Fortune Magazine Tiger Woods despite his back problems and not winning a major tournament since 2008 ranked 7th pulling in $35 million
According to the latest list of Golf Digestrsquos top 100 public and private golf courses in the US five North Carolina courses make the cut Leading the list is Tom Fazio-designed Wade Hampton Gold Club in Cashiers NC Pinehurst No 2 was the next highest course ranked on the list coming in at 28 on the list Rounding out the top five are all Fazio designs including Mountain Golf and Lake Club in Cashiers (No 78) Eagle Point Golf Club in Wilmington (No 89) and Diamond Creek Golf Club in Banner Elk (No 94)
Western North Carolina In the mile-high mountains of western North Carolina some of the best golf real estate is found atop the famed Blue Ridge Mountains the tallest peaks of the eastern United States
ldquoOur area is considered the worldrsquos premier mountain golf mecca with two of the top three mountain golf clubs in the world Wade Hampton Golf Club and Mountaintop Golf and Lake Clubrdquo said Bill Kruckenberger brokerowner of Sapphire Valley Real Estate in Sapphire NC ldquoBoth are Fazio courses also considered to be in the top 100 courses worldwide There are a ton of high-end mountain golf courses on our very small mountain plateau (including Bobby Jones summer club Highlands Country Clubrdquo
Kruckenberger knows a thing or two about golf Although hersquos not a golfer he sold the arearsquos public golf course Sapphire National Golf Club not once mdashbut twice
Continued Next Page
Bill KruckenbergerBrokerOwner
Sapphire Valley Real Estate
Sapphire NC
Our area is considered the worldrsquos premier mountain golf mecca with two of the
top three mountain golf clubs in the world
Perched 4400 feet atop the Blue Ridge Mountains buyers can enjoy big moun-tain views from this three bedroom and 3 bath Sapphire Valley Resort home Membership in the Sapphire National Golf Club is included Agent Bill Kruck-enberger Sapphire Valley Real Estate (828) 506-8398 httpwwwsapphirev-alleypropertiescom
WHAT 3-bedroom homeHOW MUCH $585000
This custom golf community home has five bedrooms and three baths Located minutes from Asheville this home is a golfers dream Agent Jeff Stewart Keller Williams Professionals (828) 337-8837 httpwwwbrokerjeffnet
WHAT 5-bedroom houseHOW MUCH $484900
Located on Wade Hamptonrsquos 8 fairway this two-story home has five bedrooms and seven baths and is walking dis-tance to the clubhouse This golf-front mountain home is located in township of Cashiers NC in a prestigious gated community Agent Bill Kruckenberger Sapphire Valley Real Estate (828) 506-8398 httpwwwsapphirevalleyproper-tiescom
WHAT 5-bedroom homeHOW MUCH $2975000
THREE FOR SALE Western North Carolina Golf Homes
16
MARCH 2015Nestled 4000 feet in the Great Smoky Mountains the golfing community of Wade Hampton is a luxury North Carolina mountain real estate golf community 65 miles southwest of Asheville
Kruckenberger has a healthy business selling to second-home buyers and retirees and renting many of those homes out to vacationers He said home prices at Wade Hampton range from $700000 for a cottage to $5 million At Sapphire National Golf Club a two-
bedroom condominium sells for $150000 and homes can sell as high as $5 million
ldquoOur area is 90 percent second-home buyersrdquo he said ldquoA good number are retirees Most buyers are out of state Florida is the number one source of buyers in our area They come to escape the heat in Florida and enjoy the cool mountain air We have a good number of buyers from South Carolina and Georgia And Texans are coming in drovesrdquo
Coastal North Carolina Increasingly golf communities offer a country club experience with swimming tennis spas fine dining and waterfront homes Maritime golf real estate resorts abound along North Carolinarsquos Atlantic coast In southeastern North Carolina along the statersquos 300-mile Atlantic coast some top-notch golf resorts await buyers who like seaside second home properties according Vance Young a broker with Intracoastal Realty in Wrightsville Beach NC
Young said coastal golf home buyers are seeking other amenities beside golf
Continued Next Page Wade Hampton Golf Club Cashiers NC
17
MARCH 2015ldquoAs far as general trends I do see and emphasis on location good shopping access to medical care and transportationrdquo said Young a top producer who sold 125 homes last year for $81 million in sales ldquoBuyers are becoming more demanding and more selective These additional amenities have become critically important the last few yearsrdquo
At Landfall a 2200 acre gated development with 1600 homes nestled along the coast near Wrightsville Beach and Figure Eight Island just nine miles northeast of Wilmington NC buyers can enjoy golf homes at the Country Club of Landfall which offers 45 holes of championship golf 27 designed by Jack Nicklaus and 18 crafted by Peter Dye said Young
Young said buyers are attracted by Wilmington NC the riverfront community along Cape Fear River which features a Riverwalk with over 200
restaurants and shops
In Landfall a golf course townhomes start at $300000 and go up to $700000 he said Single family homes range from $500000 to $5 million The closer you are to the beach the more expensive the homes become
ldquoMost of the residents of Landfall mdash 85 to 90 percent mdash are primary residentsrdquo said Young the No 1 ranked broker in Hanover County who specialize in waterfront and golf resort communities of Wrightsville Beach Figure Eight Island and Landfall ldquoBut we also have a large contingent of second-home owners who come largely from the east coast especially Virginia DC New York and New Jerseyrdquo
As American golf enters the second century of existence it faces a supply-and-demand dilemma too many courses and not enough players But in North Carolina golf real estate is soaring like an eagle
Coastal North Carolina Golf Homes
Vance YoungBroker
Intracoastal RealtyWrightsville Beach NC
As far as general trends I do see an emphasis on location good shopping access to medical care
and transportation
Overlooking the second tee of the Jack Nicklaus golf course at the Country Club of Landfall this beautiful four bedroom five bath Landfall NC French Country inspired design home has a pool and is move-in ready Agent Vance Young In-tracoastal Realty Corp (910) 232-8850 httpVanceYoungcom
This Landfall brick home has four bed-rooms and four baths wit 10 foot ceil-ings and 8 foot doors throughout This Steve Dunn built home is walking dis-tance to the Country Club of Landfall Agent Vance Young Intracoastal Re-alty Corp (910) 232-8850 httpVanc-eYoungcom
WHAT 4-bedroom homeHOW MUCH $769000
Built in 2006 this brick home overlooks the Jack Nicklaus Pines 4 fairway in Landfall NC It has three bedrooms and four baths The home features granite kitchen stainless appliances and a five burner gas range Agent Alison Bern-hart Landfall Realty LLC (800) 227-8208 httpwwwlandfallrealtycom
WHAT 3-bedroom houseHOW MUCH $689000
WHAT 4-bedroom homeHOW MUCH $1199900
THREE FOR SALE
18
MARCH 2015BOOK REVIEWThe GM Building New Yorkrsquos Most Sought After PropertyBy Octavio Nuiry Managing Editor
The General Motors Building isnrsquot the most iconic building in New York City Nor is it the tallest or most elegant But something about the glemming 50-story white marble tower that real estate tycoons canrsquot resist
In ldquoThe Liarrsquos Ball The Extraordinary Saga of How One Building Broke the Worldrsquos Toughest Tycoonsrdquo (Wiley 2014) Vicky Ward lifts the veil on New York Cityrsquos cutthroat world of high-stakes real estate shining the
spotlight on the half-century fight to own one of Americarsquos most desired pieces of real estate the General Motors Building on 5th Avenue in Manhattan
The book largely tells the tragic rise-and-fall of flamboyant New York real estate developer Harry Macklowe who in 2003 engineered the biggest real estate transaction in US history when he bought the GM Building for an unprecedented $14 billion in borrowed funds
Not only does Ward chronicle Macklowersquos recklessness but the book also is an entertaining behind the scenes glimpse at a cast of high-powered New York City real estate tycoons who lie cheat steal mdash and sue each other mdash to acquire NYC trophy properties
The colorful book which spans 150 years of New York real estate history not only documents the history of the GM Building
but some of its flowery suitors including the corrupt politician William ldquoBossrdquo Tweed Cecila Banatter the ldquohousewife tycoonrdquo too busy to name her baby Max Rayne the English property developer who snapped up the iconic Savoy-Plaza Hotel (site of the future GM Building) Disque D Deane the unlovable rogue financier Rita Jenrette Harry Macklowe and Donald Trump She shows how grown men mdash and some powerful women mdash behave like children when their toys are taken away from them
Built by General Motors for corporate offices and a show room on the southeast corner of Central Park in 1968 the GM Building is not New Yorkrsquos tallest skyscraper or most beautiful but it is
desirable in the real estate world for its location across from the Plaza Hotel But itrsquos an iconic trophy tower mdash the most expensive office tower in America mdash that occupys an entire city block and has brought out the worst in a string of landlords from Bill Zeckendorf to Harry Macklowe writes Ward General Motors Co later sold the building but maintained a sizeable presence as a tenant for years
The bookrsquos title comes from the annual black tie gala that the Real Estate Board of New York throws itself every January at the Hilton Grand Ballroom
ldquoEvery year toward the end of January around 2000 members of the New York real estate industry gather at the Hilton to celebrate hellip an event affectionately known by its attendees as lsquothe
Liarrsquos Ballrdquo writes Ward ldquoItrsquos rough itrsquos vulgar and itrsquos a riveting showrdquo
Ward is a New York-based British-born investigative journalist and former contributing editor at Vanity Fair
In 1998 Donald Trump teamed up with financial services company Conseco to buy the building for $878 million from GM which relocated back to Detroit Trump cleaned up the white marble
The Liarrsquos BallBy Vicky Ward
(Wiley 240 pages $2995)
Continued Next Page
Every year toward the end of January around 2000 members of the New York
real estate industry gather at the Hilton to celebrate hellip an event affectionately known
by its attendees as lsquothe Liarrsquos Ball Itrsquos rough itrsquos vulgar and
itrsquos a riveting show
Vicky Ward Author
ldquoThe Liarrsquos Ballrdquo
19
MARCH 2015
walls put in new granite floors emblazed his name on the front of the building and raised rents By 2001 Trump had a chance to buy the entire building for $995 million but he hesitatedTrumprsquos loss was Macklowersquos gain In 2003 Macklowe bought the GM Building from Trump and Conseco for a then-record price of $14 billion Soon Macklowe convinced Steve Jobs then CEO of Apple to open a subterranean flagship store with a glass cube in front of the GM Building It opened in 2006 and was a retail success Now the Apple Store is one of New Yorkrsquos major retail locations
ldquoFor four year Macklowe was riding high after his unexpected success with the GM Building where his visionary ideas mdash including the creation of the iconic Apple flagship store in the basement mdash created $1 billion in valuerdquo writes Ward
Soon however Macklowersquos luck ran out
Convinced he could pull off an even bigger deal Macklowe put
the building up as collateral for a $72 billion loan but the market turned and Macklowe lost the GM Building He sold the building for $28 billion in 2008
The $28 billion price tag remains the highest price ever paid for a single office building in the US
Today the General Motors Building is owned by Boston Properties (which controls 60 percent of the ownership) Chinese developer Zhang Xin and Brazilrsquos Safra Group (each owning a 20 percent stake) The latest deal values the property at $34 billionBut not everyone is a fan of the book
Donald Trump told the New York Post that ldquothe book doesnrsquot capture the essence the glamour or excitement of what happenedrdquo On Twitter Trump wrote ldquoJust finished reading a poorly written and very boring book on the GM Buildingrdquo calling Ward a ldquothird rate writerrdquo
The General Motors Building
DOWNLOAD REALTYTRACrsquoS FREE 2014 GUIDE TO SHORT SALES
State Rank
State Default Auction REO Total 1every X HU (rate)
Δ from Jan 2015
Δ from Feb 2014
US Total 31753 45880 24305 101938 1295 -429 -939
14 Alabama 0 1370 312 1682 1295 6555 2359
30 Alaska 60 59 24 143 2144 1917 2222
24 Arizona 0 1216 395 1611 1775 -2076 -2603
41 Arkansas 0 220 158 378 3494 -979 -503
13 California 5029 4301 2208 11538 1190 -793 -1161
26 Colorado 0 888 267 1155 1924 -2539 -1012
31 Connecticut 234 146 309 689 2158 -5238 -5834
8 Delaware 202 171 53 426 957 -819 1123
District of Columbia 5 37 2 44 6780 23846 52857
3 Florida 3576 7373 4844 15793 570 -1496 -3469
17 Georgia 0 1881 1014 2895 1414 1135 -2834
39 Hawaii 61 47 87 195 2678 598 773
5 Idaho 523 185 56 764 877 2797 11105
7 Illinois 2676 1649 1515 5840 906 -1917 -1051
4 Indiana 1225 1270 721 3216 871 1798 2289
21 Iowa 453 210 138 801 1674 6182 -3223
22 Kansas 231 347 139 717 1723 2535 5689
34 Kentucky 102 534 209 845 2284 4322 1544
27 Louisiana 272 444 297 1013 1949 846 -3494
37 Maine 127 86 62 275 2625 -3514 -5150
1 Maryland 1650 1520 1061 4231 564 1010 -087
32 Massachusetts 746 373 156 1275 2203 897 5269
16 Michigan 746 2178 1030 3208 1412 1154 484
40 Minnesota 0 470 315 785 2999 -2758 -1771
45 Mississippi 0 180 57 237 5390 -1350 33091
35 Missouri 0 706 352 1058 2565 -3424 -1314
49 Montana 0 26 19 45 10740 -1818 -2857
44 Nebraska 71 64 42 177 4521 -2063 11325
2 Nevada 1079 609 381 2069 569 687 1184
43 New Hampshire 0 93 53 146 4214 -4983 -6507
6 New Jersey 2283 1293 406 3982 895 -833 -1721
29 New Mexico 253 80 91 424 2128 -921 -1452
25 New York 3251 702 524 4477 1812 416 1948
10 North Carolina 2234 1107 657 3998 1088 053 10020
50 North Dakota 0 3 2 5 64942 6667 6667
9 Ohio 1480 2138 1505 5123 1000 -739 -590
33 Oklahoma 151 402 201 754 2215 2715 -157
12 Oregon 451 689 326 1466 1144 3512 7663
15 Pennsylvania 1299 1915 853 4067 1368 1118 860
42 Rhode Island 0 77 52 129 3585 -5770 -5257
11 South Carolina 872 734 293 1899 1129 717 -1364
47 South Dakota 0 22 24 46 7950 5862 222
23 Tennessee 0 1246 366 1612 1750 -1801 7315
28 Texas 3 3585 1185 4773 2110 1175 -033
20 Utah 173 366 96 635 1557 -2616 -2275
48 Vermont 0 22 12 34 9498 2143 12667
38 Virginia 0 965 315 1280 2642 -2228 -008
18 Washington 88 1316 637 2041 1421 -078 287
46 West Virginia 0 17 100 117 7529 12075 10526
19 Wisconsin 893 474 357 1724 1523 622 -3205
36 Wyoming 0 74 27 101 2604 5538 1744
February 2015 State-by-State Foreclosure Activity Summary
Rank Metro
Housing Units Per
Foreclosure Filing (Rate)
1 Tampa FL 495
2 Miami FL 539
3 Baltimore MD 547
4 Riverside CA 630
5 Chicago IL 721
6 Philadelphia PA 903
7 Washington DC 1113
8 Seattle WA 1213
9 Atlanta GA 1284
10 Los Angeles CA 1316
11 San Diego CA 1335
12 Detroit MI 1356
13 New York NY 1411
14 St Louis MO 1483
15 Phoenix AZ 1733
16 Dallas TX 1799
17 Minneapolis MN 2000
18 Houston TX 2155
19 San Francisco CA 2182
20 Boston MA 2763
TOP 20 Foreclosure rates in the
Nationrsquos 20 largest metros in February 2015
Housing News Report is a monthly publication dedicated to helping investors succeed by providing them with timely and relevant information about the housing market
EXECUTIVE EDITORDaren Blomquist
MANAGING EDITOROctavio Nuiry
WRITERSDaren Blomquist Octavio Nuiry Peter Miller
ART DIRECTIONEunice Seo
CONTACT USPhone 8003069886
LETTERS TO THE EDITORE-mail editorforeclosurenewsreportcomMail Housing News Report 1 Venture Plaza Suite 300 Irvine CA 92691
12
MARCH 2015
By Octavio Nuiry Managing Editor
North Carolina Teeing Up Real Estate in the Tar Heel State
In the game of golf an eagle mdash two strokes under par mdash is good news
In the real estate game buying a home located on a golf course is like sinking a housing eagle Not only do you waking up every morning to the possibility of golfing every day but many golf communities are attractive to buyers because of their safety beauty and quality of life
In 2013 Americans bought 717000 vacation homes up 30 percent from a year earlier and proximity to a golf course was a decisive factor for a third of the buyers according to the National Association of Realtorsrsquo 2014 Investment and Vacation Buyers Survey The median price of a vacation home in 2013 was $168700 up 125 percent from 2012
In the Tar Heel State golf and real estate are frequently tied together In North Carolina the vast geographical diversity provides golf home buyers with a wide choice of locations whether coastal inland or mountain From the shores of the Outer Banks to the rolling hills of the Black Mountains golf courses pepper the statersquos landscape Nearly 50 years after Hilton Head Island SC ushered in the first master-planned golf home community North Carolina is slowly recovering from the housing downturn
According to David Lott publisher and founder of Golfcoursehomenet golf communities were hit hard during the recent housing downturn Lott said since the recession the number of courses closing has outnumbered the courses opening He said North Carolina golf communities are slowly rebounding Golf communities in the remote western mountains
Continued Next Page
STATE SPOTLIGHT
Where Most of the Properties Come With a Club Membership AttachedTHREE FOR SALE
Resort community living at its finest in this beautiful all brick three bedroom home on a private wooded lot with wa-ter views and transferable Pinehurst Country Club membership (the buyer pays half initiation fee to join) Agent Sue Boynton Pinehurst Resort Realty (704) 564-8139 wwwpinehurstresort-realtycom
Built in 2006 this brick home on the 18th fairway of the Beacon Ridge golf course has four bedrooms and three baths Club membership attached Agent Dawn Crawley Pinehurst Resort Realty (910) 783-7993 wwwpinehurstresortre-altycom
Located on Pinehurst No 2 golf course this home has four bedrooms and five baths and is walking distance to the His-toric Village of Pinehurst The home is located in Pinehurstrsquos prestigious gated community Fairwoods 7 Agent Marga-ret Chirichingo Pinehurst Resort Realty (704) 564-8139 wwwpinehurstresortre-altycom
WHAT 3-bedroom homeHOW MUCH $225000
WHAT 4-bedroom houseHOW MUCH $399000
WHAT 4-bedroom homeHOW MUCH $1499000
13
MARCH 2015
of North Carolina were hit hardest Lott said
ldquoThe recovery started on the shores of the Atlantic and is slowly working its way inlandrdquo said Lott a former reporter for Golf Digest referring to the westward movement of North Carolinarsquos golf real estate recovery ldquoThe pace of the recovery is going to be different in the various geographical areas The mountain areas are still having the most troublerdquo
During the recent real estate boom developers and home buyers believed residential golf communities were a sure-fire bet Many buyers purchased properties to flip for a quick profit Others were lured for the country club amenities stunning views and security of the gated communities While there are no reliable data on the growth of master-planned golf communities real estate brokers and market analysts say the market is slowly recovering
Clearly the recession of 2008 sliced the growth of golf communities into the rough According to the National Golf Foundation only 14 new courses opened in the United States in 2014 the fewest in 25 years while almost 160 of the countryrsquos 14600 18-hole golf facilities shut down Last year marked the eight straight year that more courses closed than opened
Pinehurst Central North Carolina At Pinehurst (No 2) the luxurious golferrsquos resort in the arid sand hills of south-central North Carolina housing prices remain comparatively reasonable considering that most of the property in Pinehurst comes with a membership to Pinehurst Country Club Pinehurst and its surrounding communities mdash known locally as ldquothe Sandhillsrdquo mdash is located in Moore County Pinehurst is transiting from a playground for retirees into a younger family-friendly resort according to Sue Boynton an associate broker with Pinehurst Resort Realty in Pinehurst NC
ldquoA lot of the buyers here in Pinehurst are from the northeastrdquo said Boynton an avid golfer who lives in the Doral Woods golf community in Pinehurst ldquoBut there are a lot from Charlotte toordquo
As one of the countryrsquos first golf resorts Pinehurst is viewed as the cradle of the sport Pinehurst which ranks 16th on Golf Magazinersquos list of Top 100 Courses in the World is located 60 miles southwest of Raleigh No golf community in America is as rich in golf history as Pinehurst which is home to 42 golf courses many of them world renowned Last year for example the 120-year old Pinehurst resort hosted two of golfrsquos greatest stateside productions mdash the US Menrsquos Open and the Womenrsquos Open Golfers Vickie and David Bowles who purchased a historic home on the tee box of hole 5 on Pinehurst (No 2) in 2013 said they enjoy the layback atmosphere of the Pinehurst Village ldquoOne thing I love about Pinehurst is that I get to spend time with my husbandrdquo said Vickie Bowles referring to time together on the links with her husband David ldquoI had to learn golf and he had to
learn how to snow ski The weather is exceptional and the wersquore close to the mountains and the beaches of North Carolinardquo Built in 1895 on 5500 acres of the Sandhills region of North Carolina the Village of Pinehurst was originally developed as a health resort for patients recovering from tuberculosis As the popularity of North Carolina has surged so have real estate prices Home sites of $600000 are common And homes priced above $5 million donrsquot turn heads Boynton said She said most of the Pinehurst properties come with a membership to the Pinehurst Country Club Property ownership is the only requirement for membership said Bowles
ldquoPinehurst Resort is uniquerdquo said Boynton ldquoIf somebody loves golf Pinehurst is the place to be Itrsquos becoming a neighborhood-friendly community It is
Continued Next Page
David LottFounderPublisher
GolfCourseHomecom Vineyard Haven Mass
The recovery started on the shores of the Atlantic and is slowly
working its way inland The pace of the recovery is going to be different in the various geographical areas The
mountain areas are still having the most
trouble
14
MARCH 2015
increasingly transitioning to younger familiesrdquo
To become a member of the Pinehurst Country Club you have to own property in Pinehurst said Boynton Pinehurst home buyers are required to pay a $12500 transfer fee which is often included in the purchase price and $381 in monthly dues
ldquoPeople are still buyingrdquo said Boynton citing that people from all over the world come to Pinehurst and nearby Southern Pines to play golf and ride horses The area is rural with horse properties and farms Increasingly she said non-golfers are buying in golf communities
According to a survey conducted by Better Homes and Gardens Real Estate 57 percent of baby boomers say they plan to move to a new home in retirement When asked which type of community they were likely to choose 39 percent said a small town like Pinehurst or a rural community The next choice was a 55-and-older community (27 percent) followed by urban living (26 percent) and 25 percent said they would buy a second home such as a vacation beach house or a golf course community
Golf went mainstream in America in the 1890s according to Richard J Moss author of ldquoThe Kingdom of Golf in Americardquo a rich and colorful history of the sport Its popularity and its fortune has waxed and waned in response to larger economic events As America prospered in the 20th century public courses opened alongside private clubs and exposed more people to the sport Between 1992 and 2001
at least 60 percent of new golf courses were tied to property developments writes Moss Golf courses increase the value of surrounding homes and developers built long complicated courses with the hope of attracting tournaments and selling more homes
Moss points out that golf and real estate deals have always been connected Nationwide approximately 60 percent of golf courses are linked to real estate development claims Moss Courses came to be designed with premium-priced houses bordering fairways similar to houses bordering beaches
Moss believes that neither the recession nor the eclipse of its brightest star can stymie professional golf Today according to Moss there are roughly 16000 golf courses in America half or more of the golf courses in the world Average prize money for a PGA Tour event doubled between 2000 and 2010 from $33 million to $6 million reports
Continued Next Page
If somebody loves golf Pinehurst is the place to be Itrsquos becoming a
neighborhood-friendly community It is
increasingly transitioning to younger families
Sue BoyntonAssociate Broker
Pinehurst Resort Realty Pinehurst NC
Pinehurst Resort amp Country Club - No 4 Pinehurst NC
15
MARCH 2015
the Economist In 2014 professional golfers were some of the highest paid athletes in America Phil Mickelson the amiable left-hander ranked 6th nationwide making $37 million according to Fortune Magazine Tiger Woods despite his back problems and not winning a major tournament since 2008 ranked 7th pulling in $35 million
According to the latest list of Golf Digestrsquos top 100 public and private golf courses in the US five North Carolina courses make the cut Leading the list is Tom Fazio-designed Wade Hampton Gold Club in Cashiers NC Pinehurst No 2 was the next highest course ranked on the list coming in at 28 on the list Rounding out the top five are all Fazio designs including Mountain Golf and Lake Club in Cashiers (No 78) Eagle Point Golf Club in Wilmington (No 89) and Diamond Creek Golf Club in Banner Elk (No 94)
Western North Carolina In the mile-high mountains of western North Carolina some of the best golf real estate is found atop the famed Blue Ridge Mountains the tallest peaks of the eastern United States
ldquoOur area is considered the worldrsquos premier mountain golf mecca with two of the top three mountain golf clubs in the world Wade Hampton Golf Club and Mountaintop Golf and Lake Clubrdquo said Bill Kruckenberger brokerowner of Sapphire Valley Real Estate in Sapphire NC ldquoBoth are Fazio courses also considered to be in the top 100 courses worldwide There are a ton of high-end mountain golf courses on our very small mountain plateau (including Bobby Jones summer club Highlands Country Clubrdquo
Kruckenberger knows a thing or two about golf Although hersquos not a golfer he sold the arearsquos public golf course Sapphire National Golf Club not once mdashbut twice
Continued Next Page
Bill KruckenbergerBrokerOwner
Sapphire Valley Real Estate
Sapphire NC
Our area is considered the worldrsquos premier mountain golf mecca with two of the
top three mountain golf clubs in the world
Perched 4400 feet atop the Blue Ridge Mountains buyers can enjoy big moun-tain views from this three bedroom and 3 bath Sapphire Valley Resort home Membership in the Sapphire National Golf Club is included Agent Bill Kruck-enberger Sapphire Valley Real Estate (828) 506-8398 httpwwwsapphirev-alleypropertiescom
WHAT 3-bedroom homeHOW MUCH $585000
This custom golf community home has five bedrooms and three baths Located minutes from Asheville this home is a golfers dream Agent Jeff Stewart Keller Williams Professionals (828) 337-8837 httpwwwbrokerjeffnet
WHAT 5-bedroom houseHOW MUCH $484900
Located on Wade Hamptonrsquos 8 fairway this two-story home has five bedrooms and seven baths and is walking dis-tance to the clubhouse This golf-front mountain home is located in township of Cashiers NC in a prestigious gated community Agent Bill Kruckenberger Sapphire Valley Real Estate (828) 506-8398 httpwwwsapphirevalleyproper-tiescom
WHAT 5-bedroom homeHOW MUCH $2975000
THREE FOR SALE Western North Carolina Golf Homes
16
MARCH 2015Nestled 4000 feet in the Great Smoky Mountains the golfing community of Wade Hampton is a luxury North Carolina mountain real estate golf community 65 miles southwest of Asheville
Kruckenberger has a healthy business selling to second-home buyers and retirees and renting many of those homes out to vacationers He said home prices at Wade Hampton range from $700000 for a cottage to $5 million At Sapphire National Golf Club a two-
bedroom condominium sells for $150000 and homes can sell as high as $5 million
ldquoOur area is 90 percent second-home buyersrdquo he said ldquoA good number are retirees Most buyers are out of state Florida is the number one source of buyers in our area They come to escape the heat in Florida and enjoy the cool mountain air We have a good number of buyers from South Carolina and Georgia And Texans are coming in drovesrdquo
Coastal North Carolina Increasingly golf communities offer a country club experience with swimming tennis spas fine dining and waterfront homes Maritime golf real estate resorts abound along North Carolinarsquos Atlantic coast In southeastern North Carolina along the statersquos 300-mile Atlantic coast some top-notch golf resorts await buyers who like seaside second home properties according Vance Young a broker with Intracoastal Realty in Wrightsville Beach NC
Young said coastal golf home buyers are seeking other amenities beside golf
Continued Next Page Wade Hampton Golf Club Cashiers NC
17
MARCH 2015ldquoAs far as general trends I do see and emphasis on location good shopping access to medical care and transportationrdquo said Young a top producer who sold 125 homes last year for $81 million in sales ldquoBuyers are becoming more demanding and more selective These additional amenities have become critically important the last few yearsrdquo
At Landfall a 2200 acre gated development with 1600 homes nestled along the coast near Wrightsville Beach and Figure Eight Island just nine miles northeast of Wilmington NC buyers can enjoy golf homes at the Country Club of Landfall which offers 45 holes of championship golf 27 designed by Jack Nicklaus and 18 crafted by Peter Dye said Young
Young said buyers are attracted by Wilmington NC the riverfront community along Cape Fear River which features a Riverwalk with over 200
restaurants and shops
In Landfall a golf course townhomes start at $300000 and go up to $700000 he said Single family homes range from $500000 to $5 million The closer you are to the beach the more expensive the homes become
ldquoMost of the residents of Landfall mdash 85 to 90 percent mdash are primary residentsrdquo said Young the No 1 ranked broker in Hanover County who specialize in waterfront and golf resort communities of Wrightsville Beach Figure Eight Island and Landfall ldquoBut we also have a large contingent of second-home owners who come largely from the east coast especially Virginia DC New York and New Jerseyrdquo
As American golf enters the second century of existence it faces a supply-and-demand dilemma too many courses and not enough players But in North Carolina golf real estate is soaring like an eagle
Coastal North Carolina Golf Homes
Vance YoungBroker
Intracoastal RealtyWrightsville Beach NC
As far as general trends I do see an emphasis on location good shopping access to medical care
and transportation
Overlooking the second tee of the Jack Nicklaus golf course at the Country Club of Landfall this beautiful four bedroom five bath Landfall NC French Country inspired design home has a pool and is move-in ready Agent Vance Young In-tracoastal Realty Corp (910) 232-8850 httpVanceYoungcom
This Landfall brick home has four bed-rooms and four baths wit 10 foot ceil-ings and 8 foot doors throughout This Steve Dunn built home is walking dis-tance to the Country Club of Landfall Agent Vance Young Intracoastal Re-alty Corp (910) 232-8850 httpVanc-eYoungcom
WHAT 4-bedroom homeHOW MUCH $769000
Built in 2006 this brick home overlooks the Jack Nicklaus Pines 4 fairway in Landfall NC It has three bedrooms and four baths The home features granite kitchen stainless appliances and a five burner gas range Agent Alison Bern-hart Landfall Realty LLC (800) 227-8208 httpwwwlandfallrealtycom
WHAT 3-bedroom houseHOW MUCH $689000
WHAT 4-bedroom homeHOW MUCH $1199900
THREE FOR SALE
18
MARCH 2015BOOK REVIEWThe GM Building New Yorkrsquos Most Sought After PropertyBy Octavio Nuiry Managing Editor
The General Motors Building isnrsquot the most iconic building in New York City Nor is it the tallest or most elegant But something about the glemming 50-story white marble tower that real estate tycoons canrsquot resist
In ldquoThe Liarrsquos Ball The Extraordinary Saga of How One Building Broke the Worldrsquos Toughest Tycoonsrdquo (Wiley 2014) Vicky Ward lifts the veil on New York Cityrsquos cutthroat world of high-stakes real estate shining the
spotlight on the half-century fight to own one of Americarsquos most desired pieces of real estate the General Motors Building on 5th Avenue in Manhattan
The book largely tells the tragic rise-and-fall of flamboyant New York real estate developer Harry Macklowe who in 2003 engineered the biggest real estate transaction in US history when he bought the GM Building for an unprecedented $14 billion in borrowed funds
Not only does Ward chronicle Macklowersquos recklessness but the book also is an entertaining behind the scenes glimpse at a cast of high-powered New York City real estate tycoons who lie cheat steal mdash and sue each other mdash to acquire NYC trophy properties
The colorful book which spans 150 years of New York real estate history not only documents the history of the GM Building
but some of its flowery suitors including the corrupt politician William ldquoBossrdquo Tweed Cecila Banatter the ldquohousewife tycoonrdquo too busy to name her baby Max Rayne the English property developer who snapped up the iconic Savoy-Plaza Hotel (site of the future GM Building) Disque D Deane the unlovable rogue financier Rita Jenrette Harry Macklowe and Donald Trump She shows how grown men mdash and some powerful women mdash behave like children when their toys are taken away from them
Built by General Motors for corporate offices and a show room on the southeast corner of Central Park in 1968 the GM Building is not New Yorkrsquos tallest skyscraper or most beautiful but it is
desirable in the real estate world for its location across from the Plaza Hotel But itrsquos an iconic trophy tower mdash the most expensive office tower in America mdash that occupys an entire city block and has brought out the worst in a string of landlords from Bill Zeckendorf to Harry Macklowe writes Ward General Motors Co later sold the building but maintained a sizeable presence as a tenant for years
The bookrsquos title comes from the annual black tie gala that the Real Estate Board of New York throws itself every January at the Hilton Grand Ballroom
ldquoEvery year toward the end of January around 2000 members of the New York real estate industry gather at the Hilton to celebrate hellip an event affectionately known by its attendees as lsquothe
Liarrsquos Ballrdquo writes Ward ldquoItrsquos rough itrsquos vulgar and itrsquos a riveting showrdquo
Ward is a New York-based British-born investigative journalist and former contributing editor at Vanity Fair
In 1998 Donald Trump teamed up with financial services company Conseco to buy the building for $878 million from GM which relocated back to Detroit Trump cleaned up the white marble
The Liarrsquos BallBy Vicky Ward
(Wiley 240 pages $2995)
Continued Next Page
Every year toward the end of January around 2000 members of the New York
real estate industry gather at the Hilton to celebrate hellip an event affectionately known
by its attendees as lsquothe Liarrsquos Ball Itrsquos rough itrsquos vulgar and
itrsquos a riveting show
Vicky Ward Author
ldquoThe Liarrsquos Ballrdquo
19
MARCH 2015
walls put in new granite floors emblazed his name on the front of the building and raised rents By 2001 Trump had a chance to buy the entire building for $995 million but he hesitatedTrumprsquos loss was Macklowersquos gain In 2003 Macklowe bought the GM Building from Trump and Conseco for a then-record price of $14 billion Soon Macklowe convinced Steve Jobs then CEO of Apple to open a subterranean flagship store with a glass cube in front of the GM Building It opened in 2006 and was a retail success Now the Apple Store is one of New Yorkrsquos major retail locations
ldquoFor four year Macklowe was riding high after his unexpected success with the GM Building where his visionary ideas mdash including the creation of the iconic Apple flagship store in the basement mdash created $1 billion in valuerdquo writes Ward
Soon however Macklowersquos luck ran out
Convinced he could pull off an even bigger deal Macklowe put
the building up as collateral for a $72 billion loan but the market turned and Macklowe lost the GM Building He sold the building for $28 billion in 2008
The $28 billion price tag remains the highest price ever paid for a single office building in the US
Today the General Motors Building is owned by Boston Properties (which controls 60 percent of the ownership) Chinese developer Zhang Xin and Brazilrsquos Safra Group (each owning a 20 percent stake) The latest deal values the property at $34 billionBut not everyone is a fan of the book
Donald Trump told the New York Post that ldquothe book doesnrsquot capture the essence the glamour or excitement of what happenedrdquo On Twitter Trump wrote ldquoJust finished reading a poorly written and very boring book on the GM Buildingrdquo calling Ward a ldquothird rate writerrdquo
The General Motors Building
DOWNLOAD REALTYTRACrsquoS FREE 2014 GUIDE TO SHORT SALES
State Rank
State Default Auction REO Total 1every X HU (rate)
Δ from Jan 2015
Δ from Feb 2014
US Total 31753 45880 24305 101938 1295 -429 -939
14 Alabama 0 1370 312 1682 1295 6555 2359
30 Alaska 60 59 24 143 2144 1917 2222
24 Arizona 0 1216 395 1611 1775 -2076 -2603
41 Arkansas 0 220 158 378 3494 -979 -503
13 California 5029 4301 2208 11538 1190 -793 -1161
26 Colorado 0 888 267 1155 1924 -2539 -1012
31 Connecticut 234 146 309 689 2158 -5238 -5834
8 Delaware 202 171 53 426 957 -819 1123
District of Columbia 5 37 2 44 6780 23846 52857
3 Florida 3576 7373 4844 15793 570 -1496 -3469
17 Georgia 0 1881 1014 2895 1414 1135 -2834
39 Hawaii 61 47 87 195 2678 598 773
5 Idaho 523 185 56 764 877 2797 11105
7 Illinois 2676 1649 1515 5840 906 -1917 -1051
4 Indiana 1225 1270 721 3216 871 1798 2289
21 Iowa 453 210 138 801 1674 6182 -3223
22 Kansas 231 347 139 717 1723 2535 5689
34 Kentucky 102 534 209 845 2284 4322 1544
27 Louisiana 272 444 297 1013 1949 846 -3494
37 Maine 127 86 62 275 2625 -3514 -5150
1 Maryland 1650 1520 1061 4231 564 1010 -087
32 Massachusetts 746 373 156 1275 2203 897 5269
16 Michigan 746 2178 1030 3208 1412 1154 484
40 Minnesota 0 470 315 785 2999 -2758 -1771
45 Mississippi 0 180 57 237 5390 -1350 33091
35 Missouri 0 706 352 1058 2565 -3424 -1314
49 Montana 0 26 19 45 10740 -1818 -2857
44 Nebraska 71 64 42 177 4521 -2063 11325
2 Nevada 1079 609 381 2069 569 687 1184
43 New Hampshire 0 93 53 146 4214 -4983 -6507
6 New Jersey 2283 1293 406 3982 895 -833 -1721
29 New Mexico 253 80 91 424 2128 -921 -1452
25 New York 3251 702 524 4477 1812 416 1948
10 North Carolina 2234 1107 657 3998 1088 053 10020
50 North Dakota 0 3 2 5 64942 6667 6667
9 Ohio 1480 2138 1505 5123 1000 -739 -590
33 Oklahoma 151 402 201 754 2215 2715 -157
12 Oregon 451 689 326 1466 1144 3512 7663
15 Pennsylvania 1299 1915 853 4067 1368 1118 860
42 Rhode Island 0 77 52 129 3585 -5770 -5257
11 South Carolina 872 734 293 1899 1129 717 -1364
47 South Dakota 0 22 24 46 7950 5862 222
23 Tennessee 0 1246 366 1612 1750 -1801 7315
28 Texas 3 3585 1185 4773 2110 1175 -033
20 Utah 173 366 96 635 1557 -2616 -2275
48 Vermont 0 22 12 34 9498 2143 12667
38 Virginia 0 965 315 1280 2642 -2228 -008
18 Washington 88 1316 637 2041 1421 -078 287
46 West Virginia 0 17 100 117 7529 12075 10526
19 Wisconsin 893 474 357 1724 1523 622 -3205
36 Wyoming 0 74 27 101 2604 5538 1744
February 2015 State-by-State Foreclosure Activity Summary
Rank Metro
Housing Units Per
Foreclosure Filing (Rate)
1 Tampa FL 495
2 Miami FL 539
3 Baltimore MD 547
4 Riverside CA 630
5 Chicago IL 721
6 Philadelphia PA 903
7 Washington DC 1113
8 Seattle WA 1213
9 Atlanta GA 1284
10 Los Angeles CA 1316
11 San Diego CA 1335
12 Detroit MI 1356
13 New York NY 1411
14 St Louis MO 1483
15 Phoenix AZ 1733
16 Dallas TX 1799
17 Minneapolis MN 2000
18 Houston TX 2155
19 San Francisco CA 2182
20 Boston MA 2763
TOP 20 Foreclosure rates in the
Nationrsquos 20 largest metros in February 2015
Housing News Report is a monthly publication dedicated to helping investors succeed by providing them with timely and relevant information about the housing market
EXECUTIVE EDITORDaren Blomquist
MANAGING EDITOROctavio Nuiry
WRITERSDaren Blomquist Octavio Nuiry Peter Miller
ART DIRECTIONEunice Seo
CONTACT USPhone 8003069886
LETTERS TO THE EDITORE-mail editorforeclosurenewsreportcomMail Housing News Report 1 Venture Plaza Suite 300 Irvine CA 92691
13
MARCH 2015
of North Carolina were hit hardest Lott said
ldquoThe recovery started on the shores of the Atlantic and is slowly working its way inlandrdquo said Lott a former reporter for Golf Digest referring to the westward movement of North Carolinarsquos golf real estate recovery ldquoThe pace of the recovery is going to be different in the various geographical areas The mountain areas are still having the most troublerdquo
During the recent real estate boom developers and home buyers believed residential golf communities were a sure-fire bet Many buyers purchased properties to flip for a quick profit Others were lured for the country club amenities stunning views and security of the gated communities While there are no reliable data on the growth of master-planned golf communities real estate brokers and market analysts say the market is slowly recovering
Clearly the recession of 2008 sliced the growth of golf communities into the rough According to the National Golf Foundation only 14 new courses opened in the United States in 2014 the fewest in 25 years while almost 160 of the countryrsquos 14600 18-hole golf facilities shut down Last year marked the eight straight year that more courses closed than opened
Pinehurst Central North Carolina At Pinehurst (No 2) the luxurious golferrsquos resort in the arid sand hills of south-central North Carolina housing prices remain comparatively reasonable considering that most of the property in Pinehurst comes with a membership to Pinehurst Country Club Pinehurst and its surrounding communities mdash known locally as ldquothe Sandhillsrdquo mdash is located in Moore County Pinehurst is transiting from a playground for retirees into a younger family-friendly resort according to Sue Boynton an associate broker with Pinehurst Resort Realty in Pinehurst NC
ldquoA lot of the buyers here in Pinehurst are from the northeastrdquo said Boynton an avid golfer who lives in the Doral Woods golf community in Pinehurst ldquoBut there are a lot from Charlotte toordquo
As one of the countryrsquos first golf resorts Pinehurst is viewed as the cradle of the sport Pinehurst which ranks 16th on Golf Magazinersquos list of Top 100 Courses in the World is located 60 miles southwest of Raleigh No golf community in America is as rich in golf history as Pinehurst which is home to 42 golf courses many of them world renowned Last year for example the 120-year old Pinehurst resort hosted two of golfrsquos greatest stateside productions mdash the US Menrsquos Open and the Womenrsquos Open Golfers Vickie and David Bowles who purchased a historic home on the tee box of hole 5 on Pinehurst (No 2) in 2013 said they enjoy the layback atmosphere of the Pinehurst Village ldquoOne thing I love about Pinehurst is that I get to spend time with my husbandrdquo said Vickie Bowles referring to time together on the links with her husband David ldquoI had to learn golf and he had to
learn how to snow ski The weather is exceptional and the wersquore close to the mountains and the beaches of North Carolinardquo Built in 1895 on 5500 acres of the Sandhills region of North Carolina the Village of Pinehurst was originally developed as a health resort for patients recovering from tuberculosis As the popularity of North Carolina has surged so have real estate prices Home sites of $600000 are common And homes priced above $5 million donrsquot turn heads Boynton said She said most of the Pinehurst properties come with a membership to the Pinehurst Country Club Property ownership is the only requirement for membership said Bowles
ldquoPinehurst Resort is uniquerdquo said Boynton ldquoIf somebody loves golf Pinehurst is the place to be Itrsquos becoming a neighborhood-friendly community It is
Continued Next Page
David LottFounderPublisher
GolfCourseHomecom Vineyard Haven Mass
The recovery started on the shores of the Atlantic and is slowly
working its way inland The pace of the recovery is going to be different in the various geographical areas The
mountain areas are still having the most
trouble
14
MARCH 2015
increasingly transitioning to younger familiesrdquo
To become a member of the Pinehurst Country Club you have to own property in Pinehurst said Boynton Pinehurst home buyers are required to pay a $12500 transfer fee which is often included in the purchase price and $381 in monthly dues
ldquoPeople are still buyingrdquo said Boynton citing that people from all over the world come to Pinehurst and nearby Southern Pines to play golf and ride horses The area is rural with horse properties and farms Increasingly she said non-golfers are buying in golf communities
According to a survey conducted by Better Homes and Gardens Real Estate 57 percent of baby boomers say they plan to move to a new home in retirement When asked which type of community they were likely to choose 39 percent said a small town like Pinehurst or a rural community The next choice was a 55-and-older community (27 percent) followed by urban living (26 percent) and 25 percent said they would buy a second home such as a vacation beach house or a golf course community
Golf went mainstream in America in the 1890s according to Richard J Moss author of ldquoThe Kingdom of Golf in Americardquo a rich and colorful history of the sport Its popularity and its fortune has waxed and waned in response to larger economic events As America prospered in the 20th century public courses opened alongside private clubs and exposed more people to the sport Between 1992 and 2001
at least 60 percent of new golf courses were tied to property developments writes Moss Golf courses increase the value of surrounding homes and developers built long complicated courses with the hope of attracting tournaments and selling more homes
Moss points out that golf and real estate deals have always been connected Nationwide approximately 60 percent of golf courses are linked to real estate development claims Moss Courses came to be designed with premium-priced houses bordering fairways similar to houses bordering beaches
Moss believes that neither the recession nor the eclipse of its brightest star can stymie professional golf Today according to Moss there are roughly 16000 golf courses in America half or more of the golf courses in the world Average prize money for a PGA Tour event doubled between 2000 and 2010 from $33 million to $6 million reports
Continued Next Page
If somebody loves golf Pinehurst is the place to be Itrsquos becoming a
neighborhood-friendly community It is
increasingly transitioning to younger families
Sue BoyntonAssociate Broker
Pinehurst Resort Realty Pinehurst NC
Pinehurst Resort amp Country Club - No 4 Pinehurst NC
15
MARCH 2015
the Economist In 2014 professional golfers were some of the highest paid athletes in America Phil Mickelson the amiable left-hander ranked 6th nationwide making $37 million according to Fortune Magazine Tiger Woods despite his back problems and not winning a major tournament since 2008 ranked 7th pulling in $35 million
According to the latest list of Golf Digestrsquos top 100 public and private golf courses in the US five North Carolina courses make the cut Leading the list is Tom Fazio-designed Wade Hampton Gold Club in Cashiers NC Pinehurst No 2 was the next highest course ranked on the list coming in at 28 on the list Rounding out the top five are all Fazio designs including Mountain Golf and Lake Club in Cashiers (No 78) Eagle Point Golf Club in Wilmington (No 89) and Diamond Creek Golf Club in Banner Elk (No 94)
Western North Carolina In the mile-high mountains of western North Carolina some of the best golf real estate is found atop the famed Blue Ridge Mountains the tallest peaks of the eastern United States
ldquoOur area is considered the worldrsquos premier mountain golf mecca with two of the top three mountain golf clubs in the world Wade Hampton Golf Club and Mountaintop Golf and Lake Clubrdquo said Bill Kruckenberger brokerowner of Sapphire Valley Real Estate in Sapphire NC ldquoBoth are Fazio courses also considered to be in the top 100 courses worldwide There are a ton of high-end mountain golf courses on our very small mountain plateau (including Bobby Jones summer club Highlands Country Clubrdquo
Kruckenberger knows a thing or two about golf Although hersquos not a golfer he sold the arearsquos public golf course Sapphire National Golf Club not once mdashbut twice
Continued Next Page
Bill KruckenbergerBrokerOwner
Sapphire Valley Real Estate
Sapphire NC
Our area is considered the worldrsquos premier mountain golf mecca with two of the
top three mountain golf clubs in the world
Perched 4400 feet atop the Blue Ridge Mountains buyers can enjoy big moun-tain views from this three bedroom and 3 bath Sapphire Valley Resort home Membership in the Sapphire National Golf Club is included Agent Bill Kruck-enberger Sapphire Valley Real Estate (828) 506-8398 httpwwwsapphirev-alleypropertiescom
WHAT 3-bedroom homeHOW MUCH $585000
This custom golf community home has five bedrooms and three baths Located minutes from Asheville this home is a golfers dream Agent Jeff Stewart Keller Williams Professionals (828) 337-8837 httpwwwbrokerjeffnet
WHAT 5-bedroom houseHOW MUCH $484900
Located on Wade Hamptonrsquos 8 fairway this two-story home has five bedrooms and seven baths and is walking dis-tance to the clubhouse This golf-front mountain home is located in township of Cashiers NC in a prestigious gated community Agent Bill Kruckenberger Sapphire Valley Real Estate (828) 506-8398 httpwwwsapphirevalleyproper-tiescom
WHAT 5-bedroom homeHOW MUCH $2975000
THREE FOR SALE Western North Carolina Golf Homes
16
MARCH 2015Nestled 4000 feet in the Great Smoky Mountains the golfing community of Wade Hampton is a luxury North Carolina mountain real estate golf community 65 miles southwest of Asheville
Kruckenberger has a healthy business selling to second-home buyers and retirees and renting many of those homes out to vacationers He said home prices at Wade Hampton range from $700000 for a cottage to $5 million At Sapphire National Golf Club a two-
bedroom condominium sells for $150000 and homes can sell as high as $5 million
ldquoOur area is 90 percent second-home buyersrdquo he said ldquoA good number are retirees Most buyers are out of state Florida is the number one source of buyers in our area They come to escape the heat in Florida and enjoy the cool mountain air We have a good number of buyers from South Carolina and Georgia And Texans are coming in drovesrdquo
Coastal North Carolina Increasingly golf communities offer a country club experience with swimming tennis spas fine dining and waterfront homes Maritime golf real estate resorts abound along North Carolinarsquos Atlantic coast In southeastern North Carolina along the statersquos 300-mile Atlantic coast some top-notch golf resorts await buyers who like seaside second home properties according Vance Young a broker with Intracoastal Realty in Wrightsville Beach NC
Young said coastal golf home buyers are seeking other amenities beside golf
Continued Next Page Wade Hampton Golf Club Cashiers NC
17
MARCH 2015ldquoAs far as general trends I do see and emphasis on location good shopping access to medical care and transportationrdquo said Young a top producer who sold 125 homes last year for $81 million in sales ldquoBuyers are becoming more demanding and more selective These additional amenities have become critically important the last few yearsrdquo
At Landfall a 2200 acre gated development with 1600 homes nestled along the coast near Wrightsville Beach and Figure Eight Island just nine miles northeast of Wilmington NC buyers can enjoy golf homes at the Country Club of Landfall which offers 45 holes of championship golf 27 designed by Jack Nicklaus and 18 crafted by Peter Dye said Young
Young said buyers are attracted by Wilmington NC the riverfront community along Cape Fear River which features a Riverwalk with over 200
restaurants and shops
In Landfall a golf course townhomes start at $300000 and go up to $700000 he said Single family homes range from $500000 to $5 million The closer you are to the beach the more expensive the homes become
ldquoMost of the residents of Landfall mdash 85 to 90 percent mdash are primary residentsrdquo said Young the No 1 ranked broker in Hanover County who specialize in waterfront and golf resort communities of Wrightsville Beach Figure Eight Island and Landfall ldquoBut we also have a large contingent of second-home owners who come largely from the east coast especially Virginia DC New York and New Jerseyrdquo
As American golf enters the second century of existence it faces a supply-and-demand dilemma too many courses and not enough players But in North Carolina golf real estate is soaring like an eagle
Coastal North Carolina Golf Homes
Vance YoungBroker
Intracoastal RealtyWrightsville Beach NC
As far as general trends I do see an emphasis on location good shopping access to medical care
and transportation
Overlooking the second tee of the Jack Nicklaus golf course at the Country Club of Landfall this beautiful four bedroom five bath Landfall NC French Country inspired design home has a pool and is move-in ready Agent Vance Young In-tracoastal Realty Corp (910) 232-8850 httpVanceYoungcom
This Landfall brick home has four bed-rooms and four baths wit 10 foot ceil-ings and 8 foot doors throughout This Steve Dunn built home is walking dis-tance to the Country Club of Landfall Agent Vance Young Intracoastal Re-alty Corp (910) 232-8850 httpVanc-eYoungcom
WHAT 4-bedroom homeHOW MUCH $769000
Built in 2006 this brick home overlooks the Jack Nicklaus Pines 4 fairway in Landfall NC It has three bedrooms and four baths The home features granite kitchen stainless appliances and a five burner gas range Agent Alison Bern-hart Landfall Realty LLC (800) 227-8208 httpwwwlandfallrealtycom
WHAT 3-bedroom houseHOW MUCH $689000
WHAT 4-bedroom homeHOW MUCH $1199900
THREE FOR SALE
18
MARCH 2015BOOK REVIEWThe GM Building New Yorkrsquos Most Sought After PropertyBy Octavio Nuiry Managing Editor
The General Motors Building isnrsquot the most iconic building in New York City Nor is it the tallest or most elegant But something about the glemming 50-story white marble tower that real estate tycoons canrsquot resist
In ldquoThe Liarrsquos Ball The Extraordinary Saga of How One Building Broke the Worldrsquos Toughest Tycoonsrdquo (Wiley 2014) Vicky Ward lifts the veil on New York Cityrsquos cutthroat world of high-stakes real estate shining the
spotlight on the half-century fight to own one of Americarsquos most desired pieces of real estate the General Motors Building on 5th Avenue in Manhattan
The book largely tells the tragic rise-and-fall of flamboyant New York real estate developer Harry Macklowe who in 2003 engineered the biggest real estate transaction in US history when he bought the GM Building for an unprecedented $14 billion in borrowed funds
Not only does Ward chronicle Macklowersquos recklessness but the book also is an entertaining behind the scenes glimpse at a cast of high-powered New York City real estate tycoons who lie cheat steal mdash and sue each other mdash to acquire NYC trophy properties
The colorful book which spans 150 years of New York real estate history not only documents the history of the GM Building
but some of its flowery suitors including the corrupt politician William ldquoBossrdquo Tweed Cecila Banatter the ldquohousewife tycoonrdquo too busy to name her baby Max Rayne the English property developer who snapped up the iconic Savoy-Plaza Hotel (site of the future GM Building) Disque D Deane the unlovable rogue financier Rita Jenrette Harry Macklowe and Donald Trump She shows how grown men mdash and some powerful women mdash behave like children when their toys are taken away from them
Built by General Motors for corporate offices and a show room on the southeast corner of Central Park in 1968 the GM Building is not New Yorkrsquos tallest skyscraper or most beautiful but it is
desirable in the real estate world for its location across from the Plaza Hotel But itrsquos an iconic trophy tower mdash the most expensive office tower in America mdash that occupys an entire city block and has brought out the worst in a string of landlords from Bill Zeckendorf to Harry Macklowe writes Ward General Motors Co later sold the building but maintained a sizeable presence as a tenant for years
The bookrsquos title comes from the annual black tie gala that the Real Estate Board of New York throws itself every January at the Hilton Grand Ballroom
ldquoEvery year toward the end of January around 2000 members of the New York real estate industry gather at the Hilton to celebrate hellip an event affectionately known by its attendees as lsquothe
Liarrsquos Ballrdquo writes Ward ldquoItrsquos rough itrsquos vulgar and itrsquos a riveting showrdquo
Ward is a New York-based British-born investigative journalist and former contributing editor at Vanity Fair
In 1998 Donald Trump teamed up with financial services company Conseco to buy the building for $878 million from GM which relocated back to Detroit Trump cleaned up the white marble
The Liarrsquos BallBy Vicky Ward
(Wiley 240 pages $2995)
Continued Next Page
Every year toward the end of January around 2000 members of the New York
real estate industry gather at the Hilton to celebrate hellip an event affectionately known
by its attendees as lsquothe Liarrsquos Ball Itrsquos rough itrsquos vulgar and
itrsquos a riveting show
Vicky Ward Author
ldquoThe Liarrsquos Ballrdquo
19
MARCH 2015
walls put in new granite floors emblazed his name on the front of the building and raised rents By 2001 Trump had a chance to buy the entire building for $995 million but he hesitatedTrumprsquos loss was Macklowersquos gain In 2003 Macklowe bought the GM Building from Trump and Conseco for a then-record price of $14 billion Soon Macklowe convinced Steve Jobs then CEO of Apple to open a subterranean flagship store with a glass cube in front of the GM Building It opened in 2006 and was a retail success Now the Apple Store is one of New Yorkrsquos major retail locations
ldquoFor four year Macklowe was riding high after his unexpected success with the GM Building where his visionary ideas mdash including the creation of the iconic Apple flagship store in the basement mdash created $1 billion in valuerdquo writes Ward
Soon however Macklowersquos luck ran out
Convinced he could pull off an even bigger deal Macklowe put
the building up as collateral for a $72 billion loan but the market turned and Macklowe lost the GM Building He sold the building for $28 billion in 2008
The $28 billion price tag remains the highest price ever paid for a single office building in the US
Today the General Motors Building is owned by Boston Properties (which controls 60 percent of the ownership) Chinese developer Zhang Xin and Brazilrsquos Safra Group (each owning a 20 percent stake) The latest deal values the property at $34 billionBut not everyone is a fan of the book
Donald Trump told the New York Post that ldquothe book doesnrsquot capture the essence the glamour or excitement of what happenedrdquo On Twitter Trump wrote ldquoJust finished reading a poorly written and very boring book on the GM Buildingrdquo calling Ward a ldquothird rate writerrdquo
The General Motors Building
DOWNLOAD REALTYTRACrsquoS FREE 2014 GUIDE TO SHORT SALES
State Rank
State Default Auction REO Total 1every X HU (rate)
Δ from Jan 2015
Δ from Feb 2014
US Total 31753 45880 24305 101938 1295 -429 -939
14 Alabama 0 1370 312 1682 1295 6555 2359
30 Alaska 60 59 24 143 2144 1917 2222
24 Arizona 0 1216 395 1611 1775 -2076 -2603
41 Arkansas 0 220 158 378 3494 -979 -503
13 California 5029 4301 2208 11538 1190 -793 -1161
26 Colorado 0 888 267 1155 1924 -2539 -1012
31 Connecticut 234 146 309 689 2158 -5238 -5834
8 Delaware 202 171 53 426 957 -819 1123
District of Columbia 5 37 2 44 6780 23846 52857
3 Florida 3576 7373 4844 15793 570 -1496 -3469
17 Georgia 0 1881 1014 2895 1414 1135 -2834
39 Hawaii 61 47 87 195 2678 598 773
5 Idaho 523 185 56 764 877 2797 11105
7 Illinois 2676 1649 1515 5840 906 -1917 -1051
4 Indiana 1225 1270 721 3216 871 1798 2289
21 Iowa 453 210 138 801 1674 6182 -3223
22 Kansas 231 347 139 717 1723 2535 5689
34 Kentucky 102 534 209 845 2284 4322 1544
27 Louisiana 272 444 297 1013 1949 846 -3494
37 Maine 127 86 62 275 2625 -3514 -5150
1 Maryland 1650 1520 1061 4231 564 1010 -087
32 Massachusetts 746 373 156 1275 2203 897 5269
16 Michigan 746 2178 1030 3208 1412 1154 484
40 Minnesota 0 470 315 785 2999 -2758 -1771
45 Mississippi 0 180 57 237 5390 -1350 33091
35 Missouri 0 706 352 1058 2565 -3424 -1314
49 Montana 0 26 19 45 10740 -1818 -2857
44 Nebraska 71 64 42 177 4521 -2063 11325
2 Nevada 1079 609 381 2069 569 687 1184
43 New Hampshire 0 93 53 146 4214 -4983 -6507
6 New Jersey 2283 1293 406 3982 895 -833 -1721
29 New Mexico 253 80 91 424 2128 -921 -1452
25 New York 3251 702 524 4477 1812 416 1948
10 North Carolina 2234 1107 657 3998 1088 053 10020
50 North Dakota 0 3 2 5 64942 6667 6667
9 Ohio 1480 2138 1505 5123 1000 -739 -590
33 Oklahoma 151 402 201 754 2215 2715 -157
12 Oregon 451 689 326 1466 1144 3512 7663
15 Pennsylvania 1299 1915 853 4067 1368 1118 860
42 Rhode Island 0 77 52 129 3585 -5770 -5257
11 South Carolina 872 734 293 1899 1129 717 -1364
47 South Dakota 0 22 24 46 7950 5862 222
23 Tennessee 0 1246 366 1612 1750 -1801 7315
28 Texas 3 3585 1185 4773 2110 1175 -033
20 Utah 173 366 96 635 1557 -2616 -2275
48 Vermont 0 22 12 34 9498 2143 12667
38 Virginia 0 965 315 1280 2642 -2228 -008
18 Washington 88 1316 637 2041 1421 -078 287
46 West Virginia 0 17 100 117 7529 12075 10526
19 Wisconsin 893 474 357 1724 1523 622 -3205
36 Wyoming 0 74 27 101 2604 5538 1744
February 2015 State-by-State Foreclosure Activity Summary
Rank Metro
Housing Units Per
Foreclosure Filing (Rate)
1 Tampa FL 495
2 Miami FL 539
3 Baltimore MD 547
4 Riverside CA 630
5 Chicago IL 721
6 Philadelphia PA 903
7 Washington DC 1113
8 Seattle WA 1213
9 Atlanta GA 1284
10 Los Angeles CA 1316
11 San Diego CA 1335
12 Detroit MI 1356
13 New York NY 1411
14 St Louis MO 1483
15 Phoenix AZ 1733
16 Dallas TX 1799
17 Minneapolis MN 2000
18 Houston TX 2155
19 San Francisco CA 2182
20 Boston MA 2763
TOP 20 Foreclosure rates in the
Nationrsquos 20 largest metros in February 2015
Housing News Report is a monthly publication dedicated to helping investors succeed by providing them with timely and relevant information about the housing market
EXECUTIVE EDITORDaren Blomquist
MANAGING EDITOROctavio Nuiry
WRITERSDaren Blomquist Octavio Nuiry Peter Miller
ART DIRECTIONEunice Seo
CONTACT USPhone 8003069886
LETTERS TO THE EDITORE-mail editorforeclosurenewsreportcomMail Housing News Report 1 Venture Plaza Suite 300 Irvine CA 92691
14
MARCH 2015
increasingly transitioning to younger familiesrdquo
To become a member of the Pinehurst Country Club you have to own property in Pinehurst said Boynton Pinehurst home buyers are required to pay a $12500 transfer fee which is often included in the purchase price and $381 in monthly dues
ldquoPeople are still buyingrdquo said Boynton citing that people from all over the world come to Pinehurst and nearby Southern Pines to play golf and ride horses The area is rural with horse properties and farms Increasingly she said non-golfers are buying in golf communities
According to a survey conducted by Better Homes and Gardens Real Estate 57 percent of baby boomers say they plan to move to a new home in retirement When asked which type of community they were likely to choose 39 percent said a small town like Pinehurst or a rural community The next choice was a 55-and-older community (27 percent) followed by urban living (26 percent) and 25 percent said they would buy a second home such as a vacation beach house or a golf course community
Golf went mainstream in America in the 1890s according to Richard J Moss author of ldquoThe Kingdom of Golf in Americardquo a rich and colorful history of the sport Its popularity and its fortune has waxed and waned in response to larger economic events As America prospered in the 20th century public courses opened alongside private clubs and exposed more people to the sport Between 1992 and 2001
at least 60 percent of new golf courses were tied to property developments writes Moss Golf courses increase the value of surrounding homes and developers built long complicated courses with the hope of attracting tournaments and selling more homes
Moss points out that golf and real estate deals have always been connected Nationwide approximately 60 percent of golf courses are linked to real estate development claims Moss Courses came to be designed with premium-priced houses bordering fairways similar to houses bordering beaches
Moss believes that neither the recession nor the eclipse of its brightest star can stymie professional golf Today according to Moss there are roughly 16000 golf courses in America half or more of the golf courses in the world Average prize money for a PGA Tour event doubled between 2000 and 2010 from $33 million to $6 million reports
Continued Next Page
If somebody loves golf Pinehurst is the place to be Itrsquos becoming a
neighborhood-friendly community It is
increasingly transitioning to younger families
Sue BoyntonAssociate Broker
Pinehurst Resort Realty Pinehurst NC
Pinehurst Resort amp Country Club - No 4 Pinehurst NC
15
MARCH 2015
the Economist In 2014 professional golfers were some of the highest paid athletes in America Phil Mickelson the amiable left-hander ranked 6th nationwide making $37 million according to Fortune Magazine Tiger Woods despite his back problems and not winning a major tournament since 2008 ranked 7th pulling in $35 million
According to the latest list of Golf Digestrsquos top 100 public and private golf courses in the US five North Carolina courses make the cut Leading the list is Tom Fazio-designed Wade Hampton Gold Club in Cashiers NC Pinehurst No 2 was the next highest course ranked on the list coming in at 28 on the list Rounding out the top five are all Fazio designs including Mountain Golf and Lake Club in Cashiers (No 78) Eagle Point Golf Club in Wilmington (No 89) and Diamond Creek Golf Club in Banner Elk (No 94)
Western North Carolina In the mile-high mountains of western North Carolina some of the best golf real estate is found atop the famed Blue Ridge Mountains the tallest peaks of the eastern United States
ldquoOur area is considered the worldrsquos premier mountain golf mecca with two of the top three mountain golf clubs in the world Wade Hampton Golf Club and Mountaintop Golf and Lake Clubrdquo said Bill Kruckenberger brokerowner of Sapphire Valley Real Estate in Sapphire NC ldquoBoth are Fazio courses also considered to be in the top 100 courses worldwide There are a ton of high-end mountain golf courses on our very small mountain plateau (including Bobby Jones summer club Highlands Country Clubrdquo
Kruckenberger knows a thing or two about golf Although hersquos not a golfer he sold the arearsquos public golf course Sapphire National Golf Club not once mdashbut twice
Continued Next Page
Bill KruckenbergerBrokerOwner
Sapphire Valley Real Estate
Sapphire NC
Our area is considered the worldrsquos premier mountain golf mecca with two of the
top three mountain golf clubs in the world
Perched 4400 feet atop the Blue Ridge Mountains buyers can enjoy big moun-tain views from this three bedroom and 3 bath Sapphire Valley Resort home Membership in the Sapphire National Golf Club is included Agent Bill Kruck-enberger Sapphire Valley Real Estate (828) 506-8398 httpwwwsapphirev-alleypropertiescom
WHAT 3-bedroom homeHOW MUCH $585000
This custom golf community home has five bedrooms and three baths Located minutes from Asheville this home is a golfers dream Agent Jeff Stewart Keller Williams Professionals (828) 337-8837 httpwwwbrokerjeffnet
WHAT 5-bedroom houseHOW MUCH $484900
Located on Wade Hamptonrsquos 8 fairway this two-story home has five bedrooms and seven baths and is walking dis-tance to the clubhouse This golf-front mountain home is located in township of Cashiers NC in a prestigious gated community Agent Bill Kruckenberger Sapphire Valley Real Estate (828) 506-8398 httpwwwsapphirevalleyproper-tiescom
WHAT 5-bedroom homeHOW MUCH $2975000
THREE FOR SALE Western North Carolina Golf Homes
16
MARCH 2015Nestled 4000 feet in the Great Smoky Mountains the golfing community of Wade Hampton is a luxury North Carolina mountain real estate golf community 65 miles southwest of Asheville
Kruckenberger has a healthy business selling to second-home buyers and retirees and renting many of those homes out to vacationers He said home prices at Wade Hampton range from $700000 for a cottage to $5 million At Sapphire National Golf Club a two-
bedroom condominium sells for $150000 and homes can sell as high as $5 million
ldquoOur area is 90 percent second-home buyersrdquo he said ldquoA good number are retirees Most buyers are out of state Florida is the number one source of buyers in our area They come to escape the heat in Florida and enjoy the cool mountain air We have a good number of buyers from South Carolina and Georgia And Texans are coming in drovesrdquo
Coastal North Carolina Increasingly golf communities offer a country club experience with swimming tennis spas fine dining and waterfront homes Maritime golf real estate resorts abound along North Carolinarsquos Atlantic coast In southeastern North Carolina along the statersquos 300-mile Atlantic coast some top-notch golf resorts await buyers who like seaside second home properties according Vance Young a broker with Intracoastal Realty in Wrightsville Beach NC
Young said coastal golf home buyers are seeking other amenities beside golf
Continued Next Page Wade Hampton Golf Club Cashiers NC
17
MARCH 2015ldquoAs far as general trends I do see and emphasis on location good shopping access to medical care and transportationrdquo said Young a top producer who sold 125 homes last year for $81 million in sales ldquoBuyers are becoming more demanding and more selective These additional amenities have become critically important the last few yearsrdquo
At Landfall a 2200 acre gated development with 1600 homes nestled along the coast near Wrightsville Beach and Figure Eight Island just nine miles northeast of Wilmington NC buyers can enjoy golf homes at the Country Club of Landfall which offers 45 holes of championship golf 27 designed by Jack Nicklaus and 18 crafted by Peter Dye said Young
Young said buyers are attracted by Wilmington NC the riverfront community along Cape Fear River which features a Riverwalk with over 200
restaurants and shops
In Landfall a golf course townhomes start at $300000 and go up to $700000 he said Single family homes range from $500000 to $5 million The closer you are to the beach the more expensive the homes become
ldquoMost of the residents of Landfall mdash 85 to 90 percent mdash are primary residentsrdquo said Young the No 1 ranked broker in Hanover County who specialize in waterfront and golf resort communities of Wrightsville Beach Figure Eight Island and Landfall ldquoBut we also have a large contingent of second-home owners who come largely from the east coast especially Virginia DC New York and New Jerseyrdquo
As American golf enters the second century of existence it faces a supply-and-demand dilemma too many courses and not enough players But in North Carolina golf real estate is soaring like an eagle
Coastal North Carolina Golf Homes
Vance YoungBroker
Intracoastal RealtyWrightsville Beach NC
As far as general trends I do see an emphasis on location good shopping access to medical care
and transportation
Overlooking the second tee of the Jack Nicklaus golf course at the Country Club of Landfall this beautiful four bedroom five bath Landfall NC French Country inspired design home has a pool and is move-in ready Agent Vance Young In-tracoastal Realty Corp (910) 232-8850 httpVanceYoungcom
This Landfall brick home has four bed-rooms and four baths wit 10 foot ceil-ings and 8 foot doors throughout This Steve Dunn built home is walking dis-tance to the Country Club of Landfall Agent Vance Young Intracoastal Re-alty Corp (910) 232-8850 httpVanc-eYoungcom
WHAT 4-bedroom homeHOW MUCH $769000
Built in 2006 this brick home overlooks the Jack Nicklaus Pines 4 fairway in Landfall NC It has three bedrooms and four baths The home features granite kitchen stainless appliances and a five burner gas range Agent Alison Bern-hart Landfall Realty LLC (800) 227-8208 httpwwwlandfallrealtycom
WHAT 3-bedroom houseHOW MUCH $689000
WHAT 4-bedroom homeHOW MUCH $1199900
THREE FOR SALE
18
MARCH 2015BOOK REVIEWThe GM Building New Yorkrsquos Most Sought After PropertyBy Octavio Nuiry Managing Editor
The General Motors Building isnrsquot the most iconic building in New York City Nor is it the tallest or most elegant But something about the glemming 50-story white marble tower that real estate tycoons canrsquot resist
In ldquoThe Liarrsquos Ball The Extraordinary Saga of How One Building Broke the Worldrsquos Toughest Tycoonsrdquo (Wiley 2014) Vicky Ward lifts the veil on New York Cityrsquos cutthroat world of high-stakes real estate shining the
spotlight on the half-century fight to own one of Americarsquos most desired pieces of real estate the General Motors Building on 5th Avenue in Manhattan
The book largely tells the tragic rise-and-fall of flamboyant New York real estate developer Harry Macklowe who in 2003 engineered the biggest real estate transaction in US history when he bought the GM Building for an unprecedented $14 billion in borrowed funds
Not only does Ward chronicle Macklowersquos recklessness but the book also is an entertaining behind the scenes glimpse at a cast of high-powered New York City real estate tycoons who lie cheat steal mdash and sue each other mdash to acquire NYC trophy properties
The colorful book which spans 150 years of New York real estate history not only documents the history of the GM Building
but some of its flowery suitors including the corrupt politician William ldquoBossrdquo Tweed Cecila Banatter the ldquohousewife tycoonrdquo too busy to name her baby Max Rayne the English property developer who snapped up the iconic Savoy-Plaza Hotel (site of the future GM Building) Disque D Deane the unlovable rogue financier Rita Jenrette Harry Macklowe and Donald Trump She shows how grown men mdash and some powerful women mdash behave like children when their toys are taken away from them
Built by General Motors for corporate offices and a show room on the southeast corner of Central Park in 1968 the GM Building is not New Yorkrsquos tallest skyscraper or most beautiful but it is
desirable in the real estate world for its location across from the Plaza Hotel But itrsquos an iconic trophy tower mdash the most expensive office tower in America mdash that occupys an entire city block and has brought out the worst in a string of landlords from Bill Zeckendorf to Harry Macklowe writes Ward General Motors Co later sold the building but maintained a sizeable presence as a tenant for years
The bookrsquos title comes from the annual black tie gala that the Real Estate Board of New York throws itself every January at the Hilton Grand Ballroom
ldquoEvery year toward the end of January around 2000 members of the New York real estate industry gather at the Hilton to celebrate hellip an event affectionately known by its attendees as lsquothe
Liarrsquos Ballrdquo writes Ward ldquoItrsquos rough itrsquos vulgar and itrsquos a riveting showrdquo
Ward is a New York-based British-born investigative journalist and former contributing editor at Vanity Fair
In 1998 Donald Trump teamed up with financial services company Conseco to buy the building for $878 million from GM which relocated back to Detroit Trump cleaned up the white marble
The Liarrsquos BallBy Vicky Ward
(Wiley 240 pages $2995)
Continued Next Page
Every year toward the end of January around 2000 members of the New York
real estate industry gather at the Hilton to celebrate hellip an event affectionately known
by its attendees as lsquothe Liarrsquos Ball Itrsquos rough itrsquos vulgar and
itrsquos a riveting show
Vicky Ward Author
ldquoThe Liarrsquos Ballrdquo
19
MARCH 2015
walls put in new granite floors emblazed his name on the front of the building and raised rents By 2001 Trump had a chance to buy the entire building for $995 million but he hesitatedTrumprsquos loss was Macklowersquos gain In 2003 Macklowe bought the GM Building from Trump and Conseco for a then-record price of $14 billion Soon Macklowe convinced Steve Jobs then CEO of Apple to open a subterranean flagship store with a glass cube in front of the GM Building It opened in 2006 and was a retail success Now the Apple Store is one of New Yorkrsquos major retail locations
ldquoFor four year Macklowe was riding high after his unexpected success with the GM Building where his visionary ideas mdash including the creation of the iconic Apple flagship store in the basement mdash created $1 billion in valuerdquo writes Ward
Soon however Macklowersquos luck ran out
Convinced he could pull off an even bigger deal Macklowe put
the building up as collateral for a $72 billion loan but the market turned and Macklowe lost the GM Building He sold the building for $28 billion in 2008
The $28 billion price tag remains the highest price ever paid for a single office building in the US
Today the General Motors Building is owned by Boston Properties (which controls 60 percent of the ownership) Chinese developer Zhang Xin and Brazilrsquos Safra Group (each owning a 20 percent stake) The latest deal values the property at $34 billionBut not everyone is a fan of the book
Donald Trump told the New York Post that ldquothe book doesnrsquot capture the essence the glamour or excitement of what happenedrdquo On Twitter Trump wrote ldquoJust finished reading a poorly written and very boring book on the GM Buildingrdquo calling Ward a ldquothird rate writerrdquo
The General Motors Building
DOWNLOAD REALTYTRACrsquoS FREE 2014 GUIDE TO SHORT SALES
State Rank
State Default Auction REO Total 1every X HU (rate)
Δ from Jan 2015
Δ from Feb 2014
US Total 31753 45880 24305 101938 1295 -429 -939
14 Alabama 0 1370 312 1682 1295 6555 2359
30 Alaska 60 59 24 143 2144 1917 2222
24 Arizona 0 1216 395 1611 1775 -2076 -2603
41 Arkansas 0 220 158 378 3494 -979 -503
13 California 5029 4301 2208 11538 1190 -793 -1161
26 Colorado 0 888 267 1155 1924 -2539 -1012
31 Connecticut 234 146 309 689 2158 -5238 -5834
8 Delaware 202 171 53 426 957 -819 1123
District of Columbia 5 37 2 44 6780 23846 52857
3 Florida 3576 7373 4844 15793 570 -1496 -3469
17 Georgia 0 1881 1014 2895 1414 1135 -2834
39 Hawaii 61 47 87 195 2678 598 773
5 Idaho 523 185 56 764 877 2797 11105
7 Illinois 2676 1649 1515 5840 906 -1917 -1051
4 Indiana 1225 1270 721 3216 871 1798 2289
21 Iowa 453 210 138 801 1674 6182 -3223
22 Kansas 231 347 139 717 1723 2535 5689
34 Kentucky 102 534 209 845 2284 4322 1544
27 Louisiana 272 444 297 1013 1949 846 -3494
37 Maine 127 86 62 275 2625 -3514 -5150
1 Maryland 1650 1520 1061 4231 564 1010 -087
32 Massachusetts 746 373 156 1275 2203 897 5269
16 Michigan 746 2178 1030 3208 1412 1154 484
40 Minnesota 0 470 315 785 2999 -2758 -1771
45 Mississippi 0 180 57 237 5390 -1350 33091
35 Missouri 0 706 352 1058 2565 -3424 -1314
49 Montana 0 26 19 45 10740 -1818 -2857
44 Nebraska 71 64 42 177 4521 -2063 11325
2 Nevada 1079 609 381 2069 569 687 1184
43 New Hampshire 0 93 53 146 4214 -4983 -6507
6 New Jersey 2283 1293 406 3982 895 -833 -1721
29 New Mexico 253 80 91 424 2128 -921 -1452
25 New York 3251 702 524 4477 1812 416 1948
10 North Carolina 2234 1107 657 3998 1088 053 10020
50 North Dakota 0 3 2 5 64942 6667 6667
9 Ohio 1480 2138 1505 5123 1000 -739 -590
33 Oklahoma 151 402 201 754 2215 2715 -157
12 Oregon 451 689 326 1466 1144 3512 7663
15 Pennsylvania 1299 1915 853 4067 1368 1118 860
42 Rhode Island 0 77 52 129 3585 -5770 -5257
11 South Carolina 872 734 293 1899 1129 717 -1364
47 South Dakota 0 22 24 46 7950 5862 222
23 Tennessee 0 1246 366 1612 1750 -1801 7315
28 Texas 3 3585 1185 4773 2110 1175 -033
20 Utah 173 366 96 635 1557 -2616 -2275
48 Vermont 0 22 12 34 9498 2143 12667
38 Virginia 0 965 315 1280 2642 -2228 -008
18 Washington 88 1316 637 2041 1421 -078 287
46 West Virginia 0 17 100 117 7529 12075 10526
19 Wisconsin 893 474 357 1724 1523 622 -3205
36 Wyoming 0 74 27 101 2604 5538 1744
February 2015 State-by-State Foreclosure Activity Summary
Rank Metro
Housing Units Per
Foreclosure Filing (Rate)
1 Tampa FL 495
2 Miami FL 539
3 Baltimore MD 547
4 Riverside CA 630
5 Chicago IL 721
6 Philadelphia PA 903
7 Washington DC 1113
8 Seattle WA 1213
9 Atlanta GA 1284
10 Los Angeles CA 1316
11 San Diego CA 1335
12 Detroit MI 1356
13 New York NY 1411
14 St Louis MO 1483
15 Phoenix AZ 1733
16 Dallas TX 1799
17 Minneapolis MN 2000
18 Houston TX 2155
19 San Francisco CA 2182
20 Boston MA 2763
TOP 20 Foreclosure rates in the
Nationrsquos 20 largest metros in February 2015
Housing News Report is a monthly publication dedicated to helping investors succeed by providing them with timely and relevant information about the housing market
EXECUTIVE EDITORDaren Blomquist
MANAGING EDITOROctavio Nuiry
WRITERSDaren Blomquist Octavio Nuiry Peter Miller
ART DIRECTIONEunice Seo
CONTACT USPhone 8003069886
LETTERS TO THE EDITORE-mail editorforeclosurenewsreportcomMail Housing News Report 1 Venture Plaza Suite 300 Irvine CA 92691
15
MARCH 2015
the Economist In 2014 professional golfers were some of the highest paid athletes in America Phil Mickelson the amiable left-hander ranked 6th nationwide making $37 million according to Fortune Magazine Tiger Woods despite his back problems and not winning a major tournament since 2008 ranked 7th pulling in $35 million
According to the latest list of Golf Digestrsquos top 100 public and private golf courses in the US five North Carolina courses make the cut Leading the list is Tom Fazio-designed Wade Hampton Gold Club in Cashiers NC Pinehurst No 2 was the next highest course ranked on the list coming in at 28 on the list Rounding out the top five are all Fazio designs including Mountain Golf and Lake Club in Cashiers (No 78) Eagle Point Golf Club in Wilmington (No 89) and Diamond Creek Golf Club in Banner Elk (No 94)
Western North Carolina In the mile-high mountains of western North Carolina some of the best golf real estate is found atop the famed Blue Ridge Mountains the tallest peaks of the eastern United States
ldquoOur area is considered the worldrsquos premier mountain golf mecca with two of the top three mountain golf clubs in the world Wade Hampton Golf Club and Mountaintop Golf and Lake Clubrdquo said Bill Kruckenberger brokerowner of Sapphire Valley Real Estate in Sapphire NC ldquoBoth are Fazio courses also considered to be in the top 100 courses worldwide There are a ton of high-end mountain golf courses on our very small mountain plateau (including Bobby Jones summer club Highlands Country Clubrdquo
Kruckenberger knows a thing or two about golf Although hersquos not a golfer he sold the arearsquos public golf course Sapphire National Golf Club not once mdashbut twice
Continued Next Page
Bill KruckenbergerBrokerOwner
Sapphire Valley Real Estate
Sapphire NC
Our area is considered the worldrsquos premier mountain golf mecca with two of the
top three mountain golf clubs in the world
Perched 4400 feet atop the Blue Ridge Mountains buyers can enjoy big moun-tain views from this three bedroom and 3 bath Sapphire Valley Resort home Membership in the Sapphire National Golf Club is included Agent Bill Kruck-enberger Sapphire Valley Real Estate (828) 506-8398 httpwwwsapphirev-alleypropertiescom
WHAT 3-bedroom homeHOW MUCH $585000
This custom golf community home has five bedrooms and three baths Located minutes from Asheville this home is a golfers dream Agent Jeff Stewart Keller Williams Professionals (828) 337-8837 httpwwwbrokerjeffnet
WHAT 5-bedroom houseHOW MUCH $484900
Located on Wade Hamptonrsquos 8 fairway this two-story home has five bedrooms and seven baths and is walking dis-tance to the clubhouse This golf-front mountain home is located in township of Cashiers NC in a prestigious gated community Agent Bill Kruckenberger Sapphire Valley Real Estate (828) 506-8398 httpwwwsapphirevalleyproper-tiescom
WHAT 5-bedroom homeHOW MUCH $2975000
THREE FOR SALE Western North Carolina Golf Homes
16
MARCH 2015Nestled 4000 feet in the Great Smoky Mountains the golfing community of Wade Hampton is a luxury North Carolina mountain real estate golf community 65 miles southwest of Asheville
Kruckenberger has a healthy business selling to second-home buyers and retirees and renting many of those homes out to vacationers He said home prices at Wade Hampton range from $700000 for a cottage to $5 million At Sapphire National Golf Club a two-
bedroom condominium sells for $150000 and homes can sell as high as $5 million
ldquoOur area is 90 percent second-home buyersrdquo he said ldquoA good number are retirees Most buyers are out of state Florida is the number one source of buyers in our area They come to escape the heat in Florida and enjoy the cool mountain air We have a good number of buyers from South Carolina and Georgia And Texans are coming in drovesrdquo
Coastal North Carolina Increasingly golf communities offer a country club experience with swimming tennis spas fine dining and waterfront homes Maritime golf real estate resorts abound along North Carolinarsquos Atlantic coast In southeastern North Carolina along the statersquos 300-mile Atlantic coast some top-notch golf resorts await buyers who like seaside second home properties according Vance Young a broker with Intracoastal Realty in Wrightsville Beach NC
Young said coastal golf home buyers are seeking other amenities beside golf
Continued Next Page Wade Hampton Golf Club Cashiers NC
17
MARCH 2015ldquoAs far as general trends I do see and emphasis on location good shopping access to medical care and transportationrdquo said Young a top producer who sold 125 homes last year for $81 million in sales ldquoBuyers are becoming more demanding and more selective These additional amenities have become critically important the last few yearsrdquo
At Landfall a 2200 acre gated development with 1600 homes nestled along the coast near Wrightsville Beach and Figure Eight Island just nine miles northeast of Wilmington NC buyers can enjoy golf homes at the Country Club of Landfall which offers 45 holes of championship golf 27 designed by Jack Nicklaus and 18 crafted by Peter Dye said Young
Young said buyers are attracted by Wilmington NC the riverfront community along Cape Fear River which features a Riverwalk with over 200
restaurants and shops
In Landfall a golf course townhomes start at $300000 and go up to $700000 he said Single family homes range from $500000 to $5 million The closer you are to the beach the more expensive the homes become
ldquoMost of the residents of Landfall mdash 85 to 90 percent mdash are primary residentsrdquo said Young the No 1 ranked broker in Hanover County who specialize in waterfront and golf resort communities of Wrightsville Beach Figure Eight Island and Landfall ldquoBut we also have a large contingent of second-home owners who come largely from the east coast especially Virginia DC New York and New Jerseyrdquo
As American golf enters the second century of existence it faces a supply-and-demand dilemma too many courses and not enough players But in North Carolina golf real estate is soaring like an eagle
Coastal North Carolina Golf Homes
Vance YoungBroker
Intracoastal RealtyWrightsville Beach NC
As far as general trends I do see an emphasis on location good shopping access to medical care
and transportation
Overlooking the second tee of the Jack Nicklaus golf course at the Country Club of Landfall this beautiful four bedroom five bath Landfall NC French Country inspired design home has a pool and is move-in ready Agent Vance Young In-tracoastal Realty Corp (910) 232-8850 httpVanceYoungcom
This Landfall brick home has four bed-rooms and four baths wit 10 foot ceil-ings and 8 foot doors throughout This Steve Dunn built home is walking dis-tance to the Country Club of Landfall Agent Vance Young Intracoastal Re-alty Corp (910) 232-8850 httpVanc-eYoungcom
WHAT 4-bedroom homeHOW MUCH $769000
Built in 2006 this brick home overlooks the Jack Nicklaus Pines 4 fairway in Landfall NC It has three bedrooms and four baths The home features granite kitchen stainless appliances and a five burner gas range Agent Alison Bern-hart Landfall Realty LLC (800) 227-8208 httpwwwlandfallrealtycom
WHAT 3-bedroom houseHOW MUCH $689000
WHAT 4-bedroom homeHOW MUCH $1199900
THREE FOR SALE
18
MARCH 2015BOOK REVIEWThe GM Building New Yorkrsquos Most Sought After PropertyBy Octavio Nuiry Managing Editor
The General Motors Building isnrsquot the most iconic building in New York City Nor is it the tallest or most elegant But something about the glemming 50-story white marble tower that real estate tycoons canrsquot resist
In ldquoThe Liarrsquos Ball The Extraordinary Saga of How One Building Broke the Worldrsquos Toughest Tycoonsrdquo (Wiley 2014) Vicky Ward lifts the veil on New York Cityrsquos cutthroat world of high-stakes real estate shining the
spotlight on the half-century fight to own one of Americarsquos most desired pieces of real estate the General Motors Building on 5th Avenue in Manhattan
The book largely tells the tragic rise-and-fall of flamboyant New York real estate developer Harry Macklowe who in 2003 engineered the biggest real estate transaction in US history when he bought the GM Building for an unprecedented $14 billion in borrowed funds
Not only does Ward chronicle Macklowersquos recklessness but the book also is an entertaining behind the scenes glimpse at a cast of high-powered New York City real estate tycoons who lie cheat steal mdash and sue each other mdash to acquire NYC trophy properties
The colorful book which spans 150 years of New York real estate history not only documents the history of the GM Building
but some of its flowery suitors including the corrupt politician William ldquoBossrdquo Tweed Cecila Banatter the ldquohousewife tycoonrdquo too busy to name her baby Max Rayne the English property developer who snapped up the iconic Savoy-Plaza Hotel (site of the future GM Building) Disque D Deane the unlovable rogue financier Rita Jenrette Harry Macklowe and Donald Trump She shows how grown men mdash and some powerful women mdash behave like children when their toys are taken away from them
Built by General Motors for corporate offices and a show room on the southeast corner of Central Park in 1968 the GM Building is not New Yorkrsquos tallest skyscraper or most beautiful but it is
desirable in the real estate world for its location across from the Plaza Hotel But itrsquos an iconic trophy tower mdash the most expensive office tower in America mdash that occupys an entire city block and has brought out the worst in a string of landlords from Bill Zeckendorf to Harry Macklowe writes Ward General Motors Co later sold the building but maintained a sizeable presence as a tenant for years
The bookrsquos title comes from the annual black tie gala that the Real Estate Board of New York throws itself every January at the Hilton Grand Ballroom
ldquoEvery year toward the end of January around 2000 members of the New York real estate industry gather at the Hilton to celebrate hellip an event affectionately known by its attendees as lsquothe
Liarrsquos Ballrdquo writes Ward ldquoItrsquos rough itrsquos vulgar and itrsquos a riveting showrdquo
Ward is a New York-based British-born investigative journalist and former contributing editor at Vanity Fair
In 1998 Donald Trump teamed up with financial services company Conseco to buy the building for $878 million from GM which relocated back to Detroit Trump cleaned up the white marble
The Liarrsquos BallBy Vicky Ward
(Wiley 240 pages $2995)
Continued Next Page
Every year toward the end of January around 2000 members of the New York
real estate industry gather at the Hilton to celebrate hellip an event affectionately known
by its attendees as lsquothe Liarrsquos Ball Itrsquos rough itrsquos vulgar and
itrsquos a riveting show
Vicky Ward Author
ldquoThe Liarrsquos Ballrdquo
19
MARCH 2015
walls put in new granite floors emblazed his name on the front of the building and raised rents By 2001 Trump had a chance to buy the entire building for $995 million but he hesitatedTrumprsquos loss was Macklowersquos gain In 2003 Macklowe bought the GM Building from Trump and Conseco for a then-record price of $14 billion Soon Macklowe convinced Steve Jobs then CEO of Apple to open a subterranean flagship store with a glass cube in front of the GM Building It opened in 2006 and was a retail success Now the Apple Store is one of New Yorkrsquos major retail locations
ldquoFor four year Macklowe was riding high after his unexpected success with the GM Building where his visionary ideas mdash including the creation of the iconic Apple flagship store in the basement mdash created $1 billion in valuerdquo writes Ward
Soon however Macklowersquos luck ran out
Convinced he could pull off an even bigger deal Macklowe put
the building up as collateral for a $72 billion loan but the market turned and Macklowe lost the GM Building He sold the building for $28 billion in 2008
The $28 billion price tag remains the highest price ever paid for a single office building in the US
Today the General Motors Building is owned by Boston Properties (which controls 60 percent of the ownership) Chinese developer Zhang Xin and Brazilrsquos Safra Group (each owning a 20 percent stake) The latest deal values the property at $34 billionBut not everyone is a fan of the book
Donald Trump told the New York Post that ldquothe book doesnrsquot capture the essence the glamour or excitement of what happenedrdquo On Twitter Trump wrote ldquoJust finished reading a poorly written and very boring book on the GM Buildingrdquo calling Ward a ldquothird rate writerrdquo
The General Motors Building
DOWNLOAD REALTYTRACrsquoS FREE 2014 GUIDE TO SHORT SALES
State Rank
State Default Auction REO Total 1every X HU (rate)
Δ from Jan 2015
Δ from Feb 2014
US Total 31753 45880 24305 101938 1295 -429 -939
14 Alabama 0 1370 312 1682 1295 6555 2359
30 Alaska 60 59 24 143 2144 1917 2222
24 Arizona 0 1216 395 1611 1775 -2076 -2603
41 Arkansas 0 220 158 378 3494 -979 -503
13 California 5029 4301 2208 11538 1190 -793 -1161
26 Colorado 0 888 267 1155 1924 -2539 -1012
31 Connecticut 234 146 309 689 2158 -5238 -5834
8 Delaware 202 171 53 426 957 -819 1123
District of Columbia 5 37 2 44 6780 23846 52857
3 Florida 3576 7373 4844 15793 570 -1496 -3469
17 Georgia 0 1881 1014 2895 1414 1135 -2834
39 Hawaii 61 47 87 195 2678 598 773
5 Idaho 523 185 56 764 877 2797 11105
7 Illinois 2676 1649 1515 5840 906 -1917 -1051
4 Indiana 1225 1270 721 3216 871 1798 2289
21 Iowa 453 210 138 801 1674 6182 -3223
22 Kansas 231 347 139 717 1723 2535 5689
34 Kentucky 102 534 209 845 2284 4322 1544
27 Louisiana 272 444 297 1013 1949 846 -3494
37 Maine 127 86 62 275 2625 -3514 -5150
1 Maryland 1650 1520 1061 4231 564 1010 -087
32 Massachusetts 746 373 156 1275 2203 897 5269
16 Michigan 746 2178 1030 3208 1412 1154 484
40 Minnesota 0 470 315 785 2999 -2758 -1771
45 Mississippi 0 180 57 237 5390 -1350 33091
35 Missouri 0 706 352 1058 2565 -3424 -1314
49 Montana 0 26 19 45 10740 -1818 -2857
44 Nebraska 71 64 42 177 4521 -2063 11325
2 Nevada 1079 609 381 2069 569 687 1184
43 New Hampshire 0 93 53 146 4214 -4983 -6507
6 New Jersey 2283 1293 406 3982 895 -833 -1721
29 New Mexico 253 80 91 424 2128 -921 -1452
25 New York 3251 702 524 4477 1812 416 1948
10 North Carolina 2234 1107 657 3998 1088 053 10020
50 North Dakota 0 3 2 5 64942 6667 6667
9 Ohio 1480 2138 1505 5123 1000 -739 -590
33 Oklahoma 151 402 201 754 2215 2715 -157
12 Oregon 451 689 326 1466 1144 3512 7663
15 Pennsylvania 1299 1915 853 4067 1368 1118 860
42 Rhode Island 0 77 52 129 3585 -5770 -5257
11 South Carolina 872 734 293 1899 1129 717 -1364
47 South Dakota 0 22 24 46 7950 5862 222
23 Tennessee 0 1246 366 1612 1750 -1801 7315
28 Texas 3 3585 1185 4773 2110 1175 -033
20 Utah 173 366 96 635 1557 -2616 -2275
48 Vermont 0 22 12 34 9498 2143 12667
38 Virginia 0 965 315 1280 2642 -2228 -008
18 Washington 88 1316 637 2041 1421 -078 287
46 West Virginia 0 17 100 117 7529 12075 10526
19 Wisconsin 893 474 357 1724 1523 622 -3205
36 Wyoming 0 74 27 101 2604 5538 1744
February 2015 State-by-State Foreclosure Activity Summary
Rank Metro
Housing Units Per
Foreclosure Filing (Rate)
1 Tampa FL 495
2 Miami FL 539
3 Baltimore MD 547
4 Riverside CA 630
5 Chicago IL 721
6 Philadelphia PA 903
7 Washington DC 1113
8 Seattle WA 1213
9 Atlanta GA 1284
10 Los Angeles CA 1316
11 San Diego CA 1335
12 Detroit MI 1356
13 New York NY 1411
14 St Louis MO 1483
15 Phoenix AZ 1733
16 Dallas TX 1799
17 Minneapolis MN 2000
18 Houston TX 2155
19 San Francisco CA 2182
20 Boston MA 2763
TOP 20 Foreclosure rates in the
Nationrsquos 20 largest metros in February 2015
Housing News Report is a monthly publication dedicated to helping investors succeed by providing them with timely and relevant information about the housing market
EXECUTIVE EDITORDaren Blomquist
MANAGING EDITOROctavio Nuiry
WRITERSDaren Blomquist Octavio Nuiry Peter Miller
ART DIRECTIONEunice Seo
CONTACT USPhone 8003069886
LETTERS TO THE EDITORE-mail editorforeclosurenewsreportcomMail Housing News Report 1 Venture Plaza Suite 300 Irvine CA 92691
16
MARCH 2015Nestled 4000 feet in the Great Smoky Mountains the golfing community of Wade Hampton is a luxury North Carolina mountain real estate golf community 65 miles southwest of Asheville
Kruckenberger has a healthy business selling to second-home buyers and retirees and renting many of those homes out to vacationers He said home prices at Wade Hampton range from $700000 for a cottage to $5 million At Sapphire National Golf Club a two-
bedroom condominium sells for $150000 and homes can sell as high as $5 million
ldquoOur area is 90 percent second-home buyersrdquo he said ldquoA good number are retirees Most buyers are out of state Florida is the number one source of buyers in our area They come to escape the heat in Florida and enjoy the cool mountain air We have a good number of buyers from South Carolina and Georgia And Texans are coming in drovesrdquo
Coastal North Carolina Increasingly golf communities offer a country club experience with swimming tennis spas fine dining and waterfront homes Maritime golf real estate resorts abound along North Carolinarsquos Atlantic coast In southeastern North Carolina along the statersquos 300-mile Atlantic coast some top-notch golf resorts await buyers who like seaside second home properties according Vance Young a broker with Intracoastal Realty in Wrightsville Beach NC
Young said coastal golf home buyers are seeking other amenities beside golf
Continued Next Page Wade Hampton Golf Club Cashiers NC
17
MARCH 2015ldquoAs far as general trends I do see and emphasis on location good shopping access to medical care and transportationrdquo said Young a top producer who sold 125 homes last year for $81 million in sales ldquoBuyers are becoming more demanding and more selective These additional amenities have become critically important the last few yearsrdquo
At Landfall a 2200 acre gated development with 1600 homes nestled along the coast near Wrightsville Beach and Figure Eight Island just nine miles northeast of Wilmington NC buyers can enjoy golf homes at the Country Club of Landfall which offers 45 holes of championship golf 27 designed by Jack Nicklaus and 18 crafted by Peter Dye said Young
Young said buyers are attracted by Wilmington NC the riverfront community along Cape Fear River which features a Riverwalk with over 200
restaurants and shops
In Landfall a golf course townhomes start at $300000 and go up to $700000 he said Single family homes range from $500000 to $5 million The closer you are to the beach the more expensive the homes become
ldquoMost of the residents of Landfall mdash 85 to 90 percent mdash are primary residentsrdquo said Young the No 1 ranked broker in Hanover County who specialize in waterfront and golf resort communities of Wrightsville Beach Figure Eight Island and Landfall ldquoBut we also have a large contingent of second-home owners who come largely from the east coast especially Virginia DC New York and New Jerseyrdquo
As American golf enters the second century of existence it faces a supply-and-demand dilemma too many courses and not enough players But in North Carolina golf real estate is soaring like an eagle
Coastal North Carolina Golf Homes
Vance YoungBroker
Intracoastal RealtyWrightsville Beach NC
As far as general trends I do see an emphasis on location good shopping access to medical care
and transportation
Overlooking the second tee of the Jack Nicklaus golf course at the Country Club of Landfall this beautiful four bedroom five bath Landfall NC French Country inspired design home has a pool and is move-in ready Agent Vance Young In-tracoastal Realty Corp (910) 232-8850 httpVanceYoungcom
This Landfall brick home has four bed-rooms and four baths wit 10 foot ceil-ings and 8 foot doors throughout This Steve Dunn built home is walking dis-tance to the Country Club of Landfall Agent Vance Young Intracoastal Re-alty Corp (910) 232-8850 httpVanc-eYoungcom
WHAT 4-bedroom homeHOW MUCH $769000
Built in 2006 this brick home overlooks the Jack Nicklaus Pines 4 fairway in Landfall NC It has three bedrooms and four baths The home features granite kitchen stainless appliances and a five burner gas range Agent Alison Bern-hart Landfall Realty LLC (800) 227-8208 httpwwwlandfallrealtycom
WHAT 3-bedroom houseHOW MUCH $689000
WHAT 4-bedroom homeHOW MUCH $1199900
THREE FOR SALE
18
MARCH 2015BOOK REVIEWThe GM Building New Yorkrsquos Most Sought After PropertyBy Octavio Nuiry Managing Editor
The General Motors Building isnrsquot the most iconic building in New York City Nor is it the tallest or most elegant But something about the glemming 50-story white marble tower that real estate tycoons canrsquot resist
In ldquoThe Liarrsquos Ball The Extraordinary Saga of How One Building Broke the Worldrsquos Toughest Tycoonsrdquo (Wiley 2014) Vicky Ward lifts the veil on New York Cityrsquos cutthroat world of high-stakes real estate shining the
spotlight on the half-century fight to own one of Americarsquos most desired pieces of real estate the General Motors Building on 5th Avenue in Manhattan
The book largely tells the tragic rise-and-fall of flamboyant New York real estate developer Harry Macklowe who in 2003 engineered the biggest real estate transaction in US history when he bought the GM Building for an unprecedented $14 billion in borrowed funds
Not only does Ward chronicle Macklowersquos recklessness but the book also is an entertaining behind the scenes glimpse at a cast of high-powered New York City real estate tycoons who lie cheat steal mdash and sue each other mdash to acquire NYC trophy properties
The colorful book which spans 150 years of New York real estate history not only documents the history of the GM Building
but some of its flowery suitors including the corrupt politician William ldquoBossrdquo Tweed Cecila Banatter the ldquohousewife tycoonrdquo too busy to name her baby Max Rayne the English property developer who snapped up the iconic Savoy-Plaza Hotel (site of the future GM Building) Disque D Deane the unlovable rogue financier Rita Jenrette Harry Macklowe and Donald Trump She shows how grown men mdash and some powerful women mdash behave like children when their toys are taken away from them
Built by General Motors for corporate offices and a show room on the southeast corner of Central Park in 1968 the GM Building is not New Yorkrsquos tallest skyscraper or most beautiful but it is
desirable in the real estate world for its location across from the Plaza Hotel But itrsquos an iconic trophy tower mdash the most expensive office tower in America mdash that occupys an entire city block and has brought out the worst in a string of landlords from Bill Zeckendorf to Harry Macklowe writes Ward General Motors Co later sold the building but maintained a sizeable presence as a tenant for years
The bookrsquos title comes from the annual black tie gala that the Real Estate Board of New York throws itself every January at the Hilton Grand Ballroom
ldquoEvery year toward the end of January around 2000 members of the New York real estate industry gather at the Hilton to celebrate hellip an event affectionately known by its attendees as lsquothe
Liarrsquos Ballrdquo writes Ward ldquoItrsquos rough itrsquos vulgar and itrsquos a riveting showrdquo
Ward is a New York-based British-born investigative journalist and former contributing editor at Vanity Fair
In 1998 Donald Trump teamed up with financial services company Conseco to buy the building for $878 million from GM which relocated back to Detroit Trump cleaned up the white marble
The Liarrsquos BallBy Vicky Ward
(Wiley 240 pages $2995)
Continued Next Page
Every year toward the end of January around 2000 members of the New York
real estate industry gather at the Hilton to celebrate hellip an event affectionately known
by its attendees as lsquothe Liarrsquos Ball Itrsquos rough itrsquos vulgar and
itrsquos a riveting show
Vicky Ward Author
ldquoThe Liarrsquos Ballrdquo
19
MARCH 2015
walls put in new granite floors emblazed his name on the front of the building and raised rents By 2001 Trump had a chance to buy the entire building for $995 million but he hesitatedTrumprsquos loss was Macklowersquos gain In 2003 Macklowe bought the GM Building from Trump and Conseco for a then-record price of $14 billion Soon Macklowe convinced Steve Jobs then CEO of Apple to open a subterranean flagship store with a glass cube in front of the GM Building It opened in 2006 and was a retail success Now the Apple Store is one of New Yorkrsquos major retail locations
ldquoFor four year Macklowe was riding high after his unexpected success with the GM Building where his visionary ideas mdash including the creation of the iconic Apple flagship store in the basement mdash created $1 billion in valuerdquo writes Ward
Soon however Macklowersquos luck ran out
Convinced he could pull off an even bigger deal Macklowe put
the building up as collateral for a $72 billion loan but the market turned and Macklowe lost the GM Building He sold the building for $28 billion in 2008
The $28 billion price tag remains the highest price ever paid for a single office building in the US
Today the General Motors Building is owned by Boston Properties (which controls 60 percent of the ownership) Chinese developer Zhang Xin and Brazilrsquos Safra Group (each owning a 20 percent stake) The latest deal values the property at $34 billionBut not everyone is a fan of the book
Donald Trump told the New York Post that ldquothe book doesnrsquot capture the essence the glamour or excitement of what happenedrdquo On Twitter Trump wrote ldquoJust finished reading a poorly written and very boring book on the GM Buildingrdquo calling Ward a ldquothird rate writerrdquo
The General Motors Building
DOWNLOAD REALTYTRACrsquoS FREE 2014 GUIDE TO SHORT SALES
State Rank
State Default Auction REO Total 1every X HU (rate)
Δ from Jan 2015
Δ from Feb 2014
US Total 31753 45880 24305 101938 1295 -429 -939
14 Alabama 0 1370 312 1682 1295 6555 2359
30 Alaska 60 59 24 143 2144 1917 2222
24 Arizona 0 1216 395 1611 1775 -2076 -2603
41 Arkansas 0 220 158 378 3494 -979 -503
13 California 5029 4301 2208 11538 1190 -793 -1161
26 Colorado 0 888 267 1155 1924 -2539 -1012
31 Connecticut 234 146 309 689 2158 -5238 -5834
8 Delaware 202 171 53 426 957 -819 1123
District of Columbia 5 37 2 44 6780 23846 52857
3 Florida 3576 7373 4844 15793 570 -1496 -3469
17 Georgia 0 1881 1014 2895 1414 1135 -2834
39 Hawaii 61 47 87 195 2678 598 773
5 Idaho 523 185 56 764 877 2797 11105
7 Illinois 2676 1649 1515 5840 906 -1917 -1051
4 Indiana 1225 1270 721 3216 871 1798 2289
21 Iowa 453 210 138 801 1674 6182 -3223
22 Kansas 231 347 139 717 1723 2535 5689
34 Kentucky 102 534 209 845 2284 4322 1544
27 Louisiana 272 444 297 1013 1949 846 -3494
37 Maine 127 86 62 275 2625 -3514 -5150
1 Maryland 1650 1520 1061 4231 564 1010 -087
32 Massachusetts 746 373 156 1275 2203 897 5269
16 Michigan 746 2178 1030 3208 1412 1154 484
40 Minnesota 0 470 315 785 2999 -2758 -1771
45 Mississippi 0 180 57 237 5390 -1350 33091
35 Missouri 0 706 352 1058 2565 -3424 -1314
49 Montana 0 26 19 45 10740 -1818 -2857
44 Nebraska 71 64 42 177 4521 -2063 11325
2 Nevada 1079 609 381 2069 569 687 1184
43 New Hampshire 0 93 53 146 4214 -4983 -6507
6 New Jersey 2283 1293 406 3982 895 -833 -1721
29 New Mexico 253 80 91 424 2128 -921 -1452
25 New York 3251 702 524 4477 1812 416 1948
10 North Carolina 2234 1107 657 3998 1088 053 10020
50 North Dakota 0 3 2 5 64942 6667 6667
9 Ohio 1480 2138 1505 5123 1000 -739 -590
33 Oklahoma 151 402 201 754 2215 2715 -157
12 Oregon 451 689 326 1466 1144 3512 7663
15 Pennsylvania 1299 1915 853 4067 1368 1118 860
42 Rhode Island 0 77 52 129 3585 -5770 -5257
11 South Carolina 872 734 293 1899 1129 717 -1364
47 South Dakota 0 22 24 46 7950 5862 222
23 Tennessee 0 1246 366 1612 1750 -1801 7315
28 Texas 3 3585 1185 4773 2110 1175 -033
20 Utah 173 366 96 635 1557 -2616 -2275
48 Vermont 0 22 12 34 9498 2143 12667
38 Virginia 0 965 315 1280 2642 -2228 -008
18 Washington 88 1316 637 2041 1421 -078 287
46 West Virginia 0 17 100 117 7529 12075 10526
19 Wisconsin 893 474 357 1724 1523 622 -3205
36 Wyoming 0 74 27 101 2604 5538 1744
February 2015 State-by-State Foreclosure Activity Summary
Rank Metro
Housing Units Per
Foreclosure Filing (Rate)
1 Tampa FL 495
2 Miami FL 539
3 Baltimore MD 547
4 Riverside CA 630
5 Chicago IL 721
6 Philadelphia PA 903
7 Washington DC 1113
8 Seattle WA 1213
9 Atlanta GA 1284
10 Los Angeles CA 1316
11 San Diego CA 1335
12 Detroit MI 1356
13 New York NY 1411
14 St Louis MO 1483
15 Phoenix AZ 1733
16 Dallas TX 1799
17 Minneapolis MN 2000
18 Houston TX 2155
19 San Francisco CA 2182
20 Boston MA 2763
TOP 20 Foreclosure rates in the
Nationrsquos 20 largest metros in February 2015
Housing News Report is a monthly publication dedicated to helping investors succeed by providing them with timely and relevant information about the housing market
EXECUTIVE EDITORDaren Blomquist
MANAGING EDITOROctavio Nuiry
WRITERSDaren Blomquist Octavio Nuiry Peter Miller
ART DIRECTIONEunice Seo
CONTACT USPhone 8003069886
LETTERS TO THE EDITORE-mail editorforeclosurenewsreportcomMail Housing News Report 1 Venture Plaza Suite 300 Irvine CA 92691
17
MARCH 2015ldquoAs far as general trends I do see and emphasis on location good shopping access to medical care and transportationrdquo said Young a top producer who sold 125 homes last year for $81 million in sales ldquoBuyers are becoming more demanding and more selective These additional amenities have become critically important the last few yearsrdquo
At Landfall a 2200 acre gated development with 1600 homes nestled along the coast near Wrightsville Beach and Figure Eight Island just nine miles northeast of Wilmington NC buyers can enjoy golf homes at the Country Club of Landfall which offers 45 holes of championship golf 27 designed by Jack Nicklaus and 18 crafted by Peter Dye said Young
Young said buyers are attracted by Wilmington NC the riverfront community along Cape Fear River which features a Riverwalk with over 200
restaurants and shops
In Landfall a golf course townhomes start at $300000 and go up to $700000 he said Single family homes range from $500000 to $5 million The closer you are to the beach the more expensive the homes become
ldquoMost of the residents of Landfall mdash 85 to 90 percent mdash are primary residentsrdquo said Young the No 1 ranked broker in Hanover County who specialize in waterfront and golf resort communities of Wrightsville Beach Figure Eight Island and Landfall ldquoBut we also have a large contingent of second-home owners who come largely from the east coast especially Virginia DC New York and New Jerseyrdquo
As American golf enters the second century of existence it faces a supply-and-demand dilemma too many courses and not enough players But in North Carolina golf real estate is soaring like an eagle
Coastal North Carolina Golf Homes
Vance YoungBroker
Intracoastal RealtyWrightsville Beach NC
As far as general trends I do see an emphasis on location good shopping access to medical care
and transportation
Overlooking the second tee of the Jack Nicklaus golf course at the Country Club of Landfall this beautiful four bedroom five bath Landfall NC French Country inspired design home has a pool and is move-in ready Agent Vance Young In-tracoastal Realty Corp (910) 232-8850 httpVanceYoungcom
This Landfall brick home has four bed-rooms and four baths wit 10 foot ceil-ings and 8 foot doors throughout This Steve Dunn built home is walking dis-tance to the Country Club of Landfall Agent Vance Young Intracoastal Re-alty Corp (910) 232-8850 httpVanc-eYoungcom
WHAT 4-bedroom homeHOW MUCH $769000
Built in 2006 this brick home overlooks the Jack Nicklaus Pines 4 fairway in Landfall NC It has three bedrooms and four baths The home features granite kitchen stainless appliances and a five burner gas range Agent Alison Bern-hart Landfall Realty LLC (800) 227-8208 httpwwwlandfallrealtycom
WHAT 3-bedroom houseHOW MUCH $689000
WHAT 4-bedroom homeHOW MUCH $1199900
THREE FOR SALE
18
MARCH 2015BOOK REVIEWThe GM Building New Yorkrsquos Most Sought After PropertyBy Octavio Nuiry Managing Editor
The General Motors Building isnrsquot the most iconic building in New York City Nor is it the tallest or most elegant But something about the glemming 50-story white marble tower that real estate tycoons canrsquot resist
In ldquoThe Liarrsquos Ball The Extraordinary Saga of How One Building Broke the Worldrsquos Toughest Tycoonsrdquo (Wiley 2014) Vicky Ward lifts the veil on New York Cityrsquos cutthroat world of high-stakes real estate shining the
spotlight on the half-century fight to own one of Americarsquos most desired pieces of real estate the General Motors Building on 5th Avenue in Manhattan
The book largely tells the tragic rise-and-fall of flamboyant New York real estate developer Harry Macklowe who in 2003 engineered the biggest real estate transaction in US history when he bought the GM Building for an unprecedented $14 billion in borrowed funds
Not only does Ward chronicle Macklowersquos recklessness but the book also is an entertaining behind the scenes glimpse at a cast of high-powered New York City real estate tycoons who lie cheat steal mdash and sue each other mdash to acquire NYC trophy properties
The colorful book which spans 150 years of New York real estate history not only documents the history of the GM Building
but some of its flowery suitors including the corrupt politician William ldquoBossrdquo Tweed Cecila Banatter the ldquohousewife tycoonrdquo too busy to name her baby Max Rayne the English property developer who snapped up the iconic Savoy-Plaza Hotel (site of the future GM Building) Disque D Deane the unlovable rogue financier Rita Jenrette Harry Macklowe and Donald Trump She shows how grown men mdash and some powerful women mdash behave like children when their toys are taken away from them
Built by General Motors for corporate offices and a show room on the southeast corner of Central Park in 1968 the GM Building is not New Yorkrsquos tallest skyscraper or most beautiful but it is
desirable in the real estate world for its location across from the Plaza Hotel But itrsquos an iconic trophy tower mdash the most expensive office tower in America mdash that occupys an entire city block and has brought out the worst in a string of landlords from Bill Zeckendorf to Harry Macklowe writes Ward General Motors Co later sold the building but maintained a sizeable presence as a tenant for years
The bookrsquos title comes from the annual black tie gala that the Real Estate Board of New York throws itself every January at the Hilton Grand Ballroom
ldquoEvery year toward the end of January around 2000 members of the New York real estate industry gather at the Hilton to celebrate hellip an event affectionately known by its attendees as lsquothe
Liarrsquos Ballrdquo writes Ward ldquoItrsquos rough itrsquos vulgar and itrsquos a riveting showrdquo
Ward is a New York-based British-born investigative journalist and former contributing editor at Vanity Fair
In 1998 Donald Trump teamed up with financial services company Conseco to buy the building for $878 million from GM which relocated back to Detroit Trump cleaned up the white marble
The Liarrsquos BallBy Vicky Ward
(Wiley 240 pages $2995)
Continued Next Page
Every year toward the end of January around 2000 members of the New York
real estate industry gather at the Hilton to celebrate hellip an event affectionately known
by its attendees as lsquothe Liarrsquos Ball Itrsquos rough itrsquos vulgar and
itrsquos a riveting show
Vicky Ward Author
ldquoThe Liarrsquos Ballrdquo
19
MARCH 2015
walls put in new granite floors emblazed his name on the front of the building and raised rents By 2001 Trump had a chance to buy the entire building for $995 million but he hesitatedTrumprsquos loss was Macklowersquos gain In 2003 Macklowe bought the GM Building from Trump and Conseco for a then-record price of $14 billion Soon Macklowe convinced Steve Jobs then CEO of Apple to open a subterranean flagship store with a glass cube in front of the GM Building It opened in 2006 and was a retail success Now the Apple Store is one of New Yorkrsquos major retail locations
ldquoFor four year Macklowe was riding high after his unexpected success with the GM Building where his visionary ideas mdash including the creation of the iconic Apple flagship store in the basement mdash created $1 billion in valuerdquo writes Ward
Soon however Macklowersquos luck ran out
Convinced he could pull off an even bigger deal Macklowe put
the building up as collateral for a $72 billion loan but the market turned and Macklowe lost the GM Building He sold the building for $28 billion in 2008
The $28 billion price tag remains the highest price ever paid for a single office building in the US
Today the General Motors Building is owned by Boston Properties (which controls 60 percent of the ownership) Chinese developer Zhang Xin and Brazilrsquos Safra Group (each owning a 20 percent stake) The latest deal values the property at $34 billionBut not everyone is a fan of the book
Donald Trump told the New York Post that ldquothe book doesnrsquot capture the essence the glamour or excitement of what happenedrdquo On Twitter Trump wrote ldquoJust finished reading a poorly written and very boring book on the GM Buildingrdquo calling Ward a ldquothird rate writerrdquo
The General Motors Building
DOWNLOAD REALTYTRACrsquoS FREE 2014 GUIDE TO SHORT SALES
State Rank
State Default Auction REO Total 1every X HU (rate)
Δ from Jan 2015
Δ from Feb 2014
US Total 31753 45880 24305 101938 1295 -429 -939
14 Alabama 0 1370 312 1682 1295 6555 2359
30 Alaska 60 59 24 143 2144 1917 2222
24 Arizona 0 1216 395 1611 1775 -2076 -2603
41 Arkansas 0 220 158 378 3494 -979 -503
13 California 5029 4301 2208 11538 1190 -793 -1161
26 Colorado 0 888 267 1155 1924 -2539 -1012
31 Connecticut 234 146 309 689 2158 -5238 -5834
8 Delaware 202 171 53 426 957 -819 1123
District of Columbia 5 37 2 44 6780 23846 52857
3 Florida 3576 7373 4844 15793 570 -1496 -3469
17 Georgia 0 1881 1014 2895 1414 1135 -2834
39 Hawaii 61 47 87 195 2678 598 773
5 Idaho 523 185 56 764 877 2797 11105
7 Illinois 2676 1649 1515 5840 906 -1917 -1051
4 Indiana 1225 1270 721 3216 871 1798 2289
21 Iowa 453 210 138 801 1674 6182 -3223
22 Kansas 231 347 139 717 1723 2535 5689
34 Kentucky 102 534 209 845 2284 4322 1544
27 Louisiana 272 444 297 1013 1949 846 -3494
37 Maine 127 86 62 275 2625 -3514 -5150
1 Maryland 1650 1520 1061 4231 564 1010 -087
32 Massachusetts 746 373 156 1275 2203 897 5269
16 Michigan 746 2178 1030 3208 1412 1154 484
40 Minnesota 0 470 315 785 2999 -2758 -1771
45 Mississippi 0 180 57 237 5390 -1350 33091
35 Missouri 0 706 352 1058 2565 -3424 -1314
49 Montana 0 26 19 45 10740 -1818 -2857
44 Nebraska 71 64 42 177 4521 -2063 11325
2 Nevada 1079 609 381 2069 569 687 1184
43 New Hampshire 0 93 53 146 4214 -4983 -6507
6 New Jersey 2283 1293 406 3982 895 -833 -1721
29 New Mexico 253 80 91 424 2128 -921 -1452
25 New York 3251 702 524 4477 1812 416 1948
10 North Carolina 2234 1107 657 3998 1088 053 10020
50 North Dakota 0 3 2 5 64942 6667 6667
9 Ohio 1480 2138 1505 5123 1000 -739 -590
33 Oklahoma 151 402 201 754 2215 2715 -157
12 Oregon 451 689 326 1466 1144 3512 7663
15 Pennsylvania 1299 1915 853 4067 1368 1118 860
42 Rhode Island 0 77 52 129 3585 -5770 -5257
11 South Carolina 872 734 293 1899 1129 717 -1364
47 South Dakota 0 22 24 46 7950 5862 222
23 Tennessee 0 1246 366 1612 1750 -1801 7315
28 Texas 3 3585 1185 4773 2110 1175 -033
20 Utah 173 366 96 635 1557 -2616 -2275
48 Vermont 0 22 12 34 9498 2143 12667
38 Virginia 0 965 315 1280 2642 -2228 -008
18 Washington 88 1316 637 2041 1421 -078 287
46 West Virginia 0 17 100 117 7529 12075 10526
19 Wisconsin 893 474 357 1724 1523 622 -3205
36 Wyoming 0 74 27 101 2604 5538 1744
February 2015 State-by-State Foreclosure Activity Summary
Rank Metro
Housing Units Per
Foreclosure Filing (Rate)
1 Tampa FL 495
2 Miami FL 539
3 Baltimore MD 547
4 Riverside CA 630
5 Chicago IL 721
6 Philadelphia PA 903
7 Washington DC 1113
8 Seattle WA 1213
9 Atlanta GA 1284
10 Los Angeles CA 1316
11 San Diego CA 1335
12 Detroit MI 1356
13 New York NY 1411
14 St Louis MO 1483
15 Phoenix AZ 1733
16 Dallas TX 1799
17 Minneapolis MN 2000
18 Houston TX 2155
19 San Francisco CA 2182
20 Boston MA 2763
TOP 20 Foreclosure rates in the
Nationrsquos 20 largest metros in February 2015
Housing News Report is a monthly publication dedicated to helping investors succeed by providing them with timely and relevant information about the housing market
EXECUTIVE EDITORDaren Blomquist
MANAGING EDITOROctavio Nuiry
WRITERSDaren Blomquist Octavio Nuiry Peter Miller
ART DIRECTIONEunice Seo
CONTACT USPhone 8003069886
LETTERS TO THE EDITORE-mail editorforeclosurenewsreportcomMail Housing News Report 1 Venture Plaza Suite 300 Irvine CA 92691
18
MARCH 2015BOOK REVIEWThe GM Building New Yorkrsquos Most Sought After PropertyBy Octavio Nuiry Managing Editor
The General Motors Building isnrsquot the most iconic building in New York City Nor is it the tallest or most elegant But something about the glemming 50-story white marble tower that real estate tycoons canrsquot resist
In ldquoThe Liarrsquos Ball The Extraordinary Saga of How One Building Broke the Worldrsquos Toughest Tycoonsrdquo (Wiley 2014) Vicky Ward lifts the veil on New York Cityrsquos cutthroat world of high-stakes real estate shining the
spotlight on the half-century fight to own one of Americarsquos most desired pieces of real estate the General Motors Building on 5th Avenue in Manhattan
The book largely tells the tragic rise-and-fall of flamboyant New York real estate developer Harry Macklowe who in 2003 engineered the biggest real estate transaction in US history when he bought the GM Building for an unprecedented $14 billion in borrowed funds
Not only does Ward chronicle Macklowersquos recklessness but the book also is an entertaining behind the scenes glimpse at a cast of high-powered New York City real estate tycoons who lie cheat steal mdash and sue each other mdash to acquire NYC trophy properties
The colorful book which spans 150 years of New York real estate history not only documents the history of the GM Building
but some of its flowery suitors including the corrupt politician William ldquoBossrdquo Tweed Cecila Banatter the ldquohousewife tycoonrdquo too busy to name her baby Max Rayne the English property developer who snapped up the iconic Savoy-Plaza Hotel (site of the future GM Building) Disque D Deane the unlovable rogue financier Rita Jenrette Harry Macklowe and Donald Trump She shows how grown men mdash and some powerful women mdash behave like children when their toys are taken away from them
Built by General Motors for corporate offices and a show room on the southeast corner of Central Park in 1968 the GM Building is not New Yorkrsquos tallest skyscraper or most beautiful but it is
desirable in the real estate world for its location across from the Plaza Hotel But itrsquos an iconic trophy tower mdash the most expensive office tower in America mdash that occupys an entire city block and has brought out the worst in a string of landlords from Bill Zeckendorf to Harry Macklowe writes Ward General Motors Co later sold the building but maintained a sizeable presence as a tenant for years
The bookrsquos title comes from the annual black tie gala that the Real Estate Board of New York throws itself every January at the Hilton Grand Ballroom
ldquoEvery year toward the end of January around 2000 members of the New York real estate industry gather at the Hilton to celebrate hellip an event affectionately known by its attendees as lsquothe
Liarrsquos Ballrdquo writes Ward ldquoItrsquos rough itrsquos vulgar and itrsquos a riveting showrdquo
Ward is a New York-based British-born investigative journalist and former contributing editor at Vanity Fair
In 1998 Donald Trump teamed up with financial services company Conseco to buy the building for $878 million from GM which relocated back to Detroit Trump cleaned up the white marble
The Liarrsquos BallBy Vicky Ward
(Wiley 240 pages $2995)
Continued Next Page
Every year toward the end of January around 2000 members of the New York
real estate industry gather at the Hilton to celebrate hellip an event affectionately known
by its attendees as lsquothe Liarrsquos Ball Itrsquos rough itrsquos vulgar and
itrsquos a riveting show
Vicky Ward Author
ldquoThe Liarrsquos Ballrdquo
19
MARCH 2015
walls put in new granite floors emblazed his name on the front of the building and raised rents By 2001 Trump had a chance to buy the entire building for $995 million but he hesitatedTrumprsquos loss was Macklowersquos gain In 2003 Macklowe bought the GM Building from Trump and Conseco for a then-record price of $14 billion Soon Macklowe convinced Steve Jobs then CEO of Apple to open a subterranean flagship store with a glass cube in front of the GM Building It opened in 2006 and was a retail success Now the Apple Store is one of New Yorkrsquos major retail locations
ldquoFor four year Macklowe was riding high after his unexpected success with the GM Building where his visionary ideas mdash including the creation of the iconic Apple flagship store in the basement mdash created $1 billion in valuerdquo writes Ward
Soon however Macklowersquos luck ran out
Convinced he could pull off an even bigger deal Macklowe put
the building up as collateral for a $72 billion loan but the market turned and Macklowe lost the GM Building He sold the building for $28 billion in 2008
The $28 billion price tag remains the highest price ever paid for a single office building in the US
Today the General Motors Building is owned by Boston Properties (which controls 60 percent of the ownership) Chinese developer Zhang Xin and Brazilrsquos Safra Group (each owning a 20 percent stake) The latest deal values the property at $34 billionBut not everyone is a fan of the book
Donald Trump told the New York Post that ldquothe book doesnrsquot capture the essence the glamour or excitement of what happenedrdquo On Twitter Trump wrote ldquoJust finished reading a poorly written and very boring book on the GM Buildingrdquo calling Ward a ldquothird rate writerrdquo
The General Motors Building
DOWNLOAD REALTYTRACrsquoS FREE 2014 GUIDE TO SHORT SALES
State Rank
State Default Auction REO Total 1every X HU (rate)
Δ from Jan 2015
Δ from Feb 2014
US Total 31753 45880 24305 101938 1295 -429 -939
14 Alabama 0 1370 312 1682 1295 6555 2359
30 Alaska 60 59 24 143 2144 1917 2222
24 Arizona 0 1216 395 1611 1775 -2076 -2603
41 Arkansas 0 220 158 378 3494 -979 -503
13 California 5029 4301 2208 11538 1190 -793 -1161
26 Colorado 0 888 267 1155 1924 -2539 -1012
31 Connecticut 234 146 309 689 2158 -5238 -5834
8 Delaware 202 171 53 426 957 -819 1123
District of Columbia 5 37 2 44 6780 23846 52857
3 Florida 3576 7373 4844 15793 570 -1496 -3469
17 Georgia 0 1881 1014 2895 1414 1135 -2834
39 Hawaii 61 47 87 195 2678 598 773
5 Idaho 523 185 56 764 877 2797 11105
7 Illinois 2676 1649 1515 5840 906 -1917 -1051
4 Indiana 1225 1270 721 3216 871 1798 2289
21 Iowa 453 210 138 801 1674 6182 -3223
22 Kansas 231 347 139 717 1723 2535 5689
34 Kentucky 102 534 209 845 2284 4322 1544
27 Louisiana 272 444 297 1013 1949 846 -3494
37 Maine 127 86 62 275 2625 -3514 -5150
1 Maryland 1650 1520 1061 4231 564 1010 -087
32 Massachusetts 746 373 156 1275 2203 897 5269
16 Michigan 746 2178 1030 3208 1412 1154 484
40 Minnesota 0 470 315 785 2999 -2758 -1771
45 Mississippi 0 180 57 237 5390 -1350 33091
35 Missouri 0 706 352 1058 2565 -3424 -1314
49 Montana 0 26 19 45 10740 -1818 -2857
44 Nebraska 71 64 42 177 4521 -2063 11325
2 Nevada 1079 609 381 2069 569 687 1184
43 New Hampshire 0 93 53 146 4214 -4983 -6507
6 New Jersey 2283 1293 406 3982 895 -833 -1721
29 New Mexico 253 80 91 424 2128 -921 -1452
25 New York 3251 702 524 4477 1812 416 1948
10 North Carolina 2234 1107 657 3998 1088 053 10020
50 North Dakota 0 3 2 5 64942 6667 6667
9 Ohio 1480 2138 1505 5123 1000 -739 -590
33 Oklahoma 151 402 201 754 2215 2715 -157
12 Oregon 451 689 326 1466 1144 3512 7663
15 Pennsylvania 1299 1915 853 4067 1368 1118 860
42 Rhode Island 0 77 52 129 3585 -5770 -5257
11 South Carolina 872 734 293 1899 1129 717 -1364
47 South Dakota 0 22 24 46 7950 5862 222
23 Tennessee 0 1246 366 1612 1750 -1801 7315
28 Texas 3 3585 1185 4773 2110 1175 -033
20 Utah 173 366 96 635 1557 -2616 -2275
48 Vermont 0 22 12 34 9498 2143 12667
38 Virginia 0 965 315 1280 2642 -2228 -008
18 Washington 88 1316 637 2041 1421 -078 287
46 West Virginia 0 17 100 117 7529 12075 10526
19 Wisconsin 893 474 357 1724 1523 622 -3205
36 Wyoming 0 74 27 101 2604 5538 1744
February 2015 State-by-State Foreclosure Activity Summary
Rank Metro
Housing Units Per
Foreclosure Filing (Rate)
1 Tampa FL 495
2 Miami FL 539
3 Baltimore MD 547
4 Riverside CA 630
5 Chicago IL 721
6 Philadelphia PA 903
7 Washington DC 1113
8 Seattle WA 1213
9 Atlanta GA 1284
10 Los Angeles CA 1316
11 San Diego CA 1335
12 Detroit MI 1356
13 New York NY 1411
14 St Louis MO 1483
15 Phoenix AZ 1733
16 Dallas TX 1799
17 Minneapolis MN 2000
18 Houston TX 2155
19 San Francisco CA 2182
20 Boston MA 2763
TOP 20 Foreclosure rates in the
Nationrsquos 20 largest metros in February 2015
Housing News Report is a monthly publication dedicated to helping investors succeed by providing them with timely and relevant information about the housing market
EXECUTIVE EDITORDaren Blomquist
MANAGING EDITOROctavio Nuiry
WRITERSDaren Blomquist Octavio Nuiry Peter Miller
ART DIRECTIONEunice Seo
CONTACT USPhone 8003069886
LETTERS TO THE EDITORE-mail editorforeclosurenewsreportcomMail Housing News Report 1 Venture Plaza Suite 300 Irvine CA 92691
19
MARCH 2015
walls put in new granite floors emblazed his name on the front of the building and raised rents By 2001 Trump had a chance to buy the entire building for $995 million but he hesitatedTrumprsquos loss was Macklowersquos gain In 2003 Macklowe bought the GM Building from Trump and Conseco for a then-record price of $14 billion Soon Macklowe convinced Steve Jobs then CEO of Apple to open a subterranean flagship store with a glass cube in front of the GM Building It opened in 2006 and was a retail success Now the Apple Store is one of New Yorkrsquos major retail locations
ldquoFor four year Macklowe was riding high after his unexpected success with the GM Building where his visionary ideas mdash including the creation of the iconic Apple flagship store in the basement mdash created $1 billion in valuerdquo writes Ward
Soon however Macklowersquos luck ran out
Convinced he could pull off an even bigger deal Macklowe put
the building up as collateral for a $72 billion loan but the market turned and Macklowe lost the GM Building He sold the building for $28 billion in 2008
The $28 billion price tag remains the highest price ever paid for a single office building in the US
Today the General Motors Building is owned by Boston Properties (which controls 60 percent of the ownership) Chinese developer Zhang Xin and Brazilrsquos Safra Group (each owning a 20 percent stake) The latest deal values the property at $34 billionBut not everyone is a fan of the book
Donald Trump told the New York Post that ldquothe book doesnrsquot capture the essence the glamour or excitement of what happenedrdquo On Twitter Trump wrote ldquoJust finished reading a poorly written and very boring book on the GM Buildingrdquo calling Ward a ldquothird rate writerrdquo
The General Motors Building
DOWNLOAD REALTYTRACrsquoS FREE 2014 GUIDE TO SHORT SALES
State Rank
State Default Auction REO Total 1every X HU (rate)
Δ from Jan 2015
Δ from Feb 2014
US Total 31753 45880 24305 101938 1295 -429 -939
14 Alabama 0 1370 312 1682 1295 6555 2359
30 Alaska 60 59 24 143 2144 1917 2222
24 Arizona 0 1216 395 1611 1775 -2076 -2603
41 Arkansas 0 220 158 378 3494 -979 -503
13 California 5029 4301 2208 11538 1190 -793 -1161
26 Colorado 0 888 267 1155 1924 -2539 -1012
31 Connecticut 234 146 309 689 2158 -5238 -5834
8 Delaware 202 171 53 426 957 -819 1123
District of Columbia 5 37 2 44 6780 23846 52857
3 Florida 3576 7373 4844 15793 570 -1496 -3469
17 Georgia 0 1881 1014 2895 1414 1135 -2834
39 Hawaii 61 47 87 195 2678 598 773
5 Idaho 523 185 56 764 877 2797 11105
7 Illinois 2676 1649 1515 5840 906 -1917 -1051
4 Indiana 1225 1270 721 3216 871 1798 2289
21 Iowa 453 210 138 801 1674 6182 -3223
22 Kansas 231 347 139 717 1723 2535 5689
34 Kentucky 102 534 209 845 2284 4322 1544
27 Louisiana 272 444 297 1013 1949 846 -3494
37 Maine 127 86 62 275 2625 -3514 -5150
1 Maryland 1650 1520 1061 4231 564 1010 -087
32 Massachusetts 746 373 156 1275 2203 897 5269
16 Michigan 746 2178 1030 3208 1412 1154 484
40 Minnesota 0 470 315 785 2999 -2758 -1771
45 Mississippi 0 180 57 237 5390 -1350 33091
35 Missouri 0 706 352 1058 2565 -3424 -1314
49 Montana 0 26 19 45 10740 -1818 -2857
44 Nebraska 71 64 42 177 4521 -2063 11325
2 Nevada 1079 609 381 2069 569 687 1184
43 New Hampshire 0 93 53 146 4214 -4983 -6507
6 New Jersey 2283 1293 406 3982 895 -833 -1721
29 New Mexico 253 80 91 424 2128 -921 -1452
25 New York 3251 702 524 4477 1812 416 1948
10 North Carolina 2234 1107 657 3998 1088 053 10020
50 North Dakota 0 3 2 5 64942 6667 6667
9 Ohio 1480 2138 1505 5123 1000 -739 -590
33 Oklahoma 151 402 201 754 2215 2715 -157
12 Oregon 451 689 326 1466 1144 3512 7663
15 Pennsylvania 1299 1915 853 4067 1368 1118 860
42 Rhode Island 0 77 52 129 3585 -5770 -5257
11 South Carolina 872 734 293 1899 1129 717 -1364
47 South Dakota 0 22 24 46 7950 5862 222
23 Tennessee 0 1246 366 1612 1750 -1801 7315
28 Texas 3 3585 1185 4773 2110 1175 -033
20 Utah 173 366 96 635 1557 -2616 -2275
48 Vermont 0 22 12 34 9498 2143 12667
38 Virginia 0 965 315 1280 2642 -2228 -008
18 Washington 88 1316 637 2041 1421 -078 287
46 West Virginia 0 17 100 117 7529 12075 10526
19 Wisconsin 893 474 357 1724 1523 622 -3205
36 Wyoming 0 74 27 101 2604 5538 1744
February 2015 State-by-State Foreclosure Activity Summary
Rank Metro
Housing Units Per
Foreclosure Filing (Rate)
1 Tampa FL 495
2 Miami FL 539
3 Baltimore MD 547
4 Riverside CA 630
5 Chicago IL 721
6 Philadelphia PA 903
7 Washington DC 1113
8 Seattle WA 1213
9 Atlanta GA 1284
10 Los Angeles CA 1316
11 San Diego CA 1335
12 Detroit MI 1356
13 New York NY 1411
14 St Louis MO 1483
15 Phoenix AZ 1733
16 Dallas TX 1799
17 Minneapolis MN 2000
18 Houston TX 2155
19 San Francisco CA 2182
20 Boston MA 2763
TOP 20 Foreclosure rates in the
Nationrsquos 20 largest metros in February 2015
Housing News Report is a monthly publication dedicated to helping investors succeed by providing them with timely and relevant information about the housing market
EXECUTIVE EDITORDaren Blomquist
MANAGING EDITOROctavio Nuiry
WRITERSDaren Blomquist Octavio Nuiry Peter Miller
ART DIRECTIONEunice Seo
CONTACT USPhone 8003069886
LETTERS TO THE EDITORE-mail editorforeclosurenewsreportcomMail Housing News Report 1 Venture Plaza Suite 300 Irvine CA 92691
State Rank
State Default Auction REO Total 1every X HU (rate)
Δ from Jan 2015
Δ from Feb 2014
US Total 31753 45880 24305 101938 1295 -429 -939
14 Alabama 0 1370 312 1682 1295 6555 2359
30 Alaska 60 59 24 143 2144 1917 2222
24 Arizona 0 1216 395 1611 1775 -2076 -2603
41 Arkansas 0 220 158 378 3494 -979 -503
13 California 5029 4301 2208 11538 1190 -793 -1161
26 Colorado 0 888 267 1155 1924 -2539 -1012
31 Connecticut 234 146 309 689 2158 -5238 -5834
8 Delaware 202 171 53 426 957 -819 1123
District of Columbia 5 37 2 44 6780 23846 52857
3 Florida 3576 7373 4844 15793 570 -1496 -3469
17 Georgia 0 1881 1014 2895 1414 1135 -2834
39 Hawaii 61 47 87 195 2678 598 773
5 Idaho 523 185 56 764 877 2797 11105
7 Illinois 2676 1649 1515 5840 906 -1917 -1051
4 Indiana 1225 1270 721 3216 871 1798 2289
21 Iowa 453 210 138 801 1674 6182 -3223
22 Kansas 231 347 139 717 1723 2535 5689
34 Kentucky 102 534 209 845 2284 4322 1544
27 Louisiana 272 444 297 1013 1949 846 -3494
37 Maine 127 86 62 275 2625 -3514 -5150
1 Maryland 1650 1520 1061 4231 564 1010 -087
32 Massachusetts 746 373 156 1275 2203 897 5269
16 Michigan 746 2178 1030 3208 1412 1154 484
40 Minnesota 0 470 315 785 2999 -2758 -1771
45 Mississippi 0 180 57 237 5390 -1350 33091
35 Missouri 0 706 352 1058 2565 -3424 -1314
49 Montana 0 26 19 45 10740 -1818 -2857
44 Nebraska 71 64 42 177 4521 -2063 11325
2 Nevada 1079 609 381 2069 569 687 1184
43 New Hampshire 0 93 53 146 4214 -4983 -6507
6 New Jersey 2283 1293 406 3982 895 -833 -1721
29 New Mexico 253 80 91 424 2128 -921 -1452
25 New York 3251 702 524 4477 1812 416 1948
10 North Carolina 2234 1107 657 3998 1088 053 10020
50 North Dakota 0 3 2 5 64942 6667 6667
9 Ohio 1480 2138 1505 5123 1000 -739 -590
33 Oklahoma 151 402 201 754 2215 2715 -157
12 Oregon 451 689 326 1466 1144 3512 7663
15 Pennsylvania 1299 1915 853 4067 1368 1118 860
42 Rhode Island 0 77 52 129 3585 -5770 -5257
11 South Carolina 872 734 293 1899 1129 717 -1364
47 South Dakota 0 22 24 46 7950 5862 222
23 Tennessee 0 1246 366 1612 1750 -1801 7315
28 Texas 3 3585 1185 4773 2110 1175 -033
20 Utah 173 366 96 635 1557 -2616 -2275
48 Vermont 0 22 12 34 9498 2143 12667
38 Virginia 0 965 315 1280 2642 -2228 -008
18 Washington 88 1316 637 2041 1421 -078 287
46 West Virginia 0 17 100 117 7529 12075 10526
19 Wisconsin 893 474 357 1724 1523 622 -3205
36 Wyoming 0 74 27 101 2604 5538 1744
February 2015 State-by-State Foreclosure Activity Summary
Rank Metro
Housing Units Per
Foreclosure Filing (Rate)
1 Tampa FL 495
2 Miami FL 539
3 Baltimore MD 547
4 Riverside CA 630
5 Chicago IL 721
6 Philadelphia PA 903
7 Washington DC 1113
8 Seattle WA 1213
9 Atlanta GA 1284
10 Los Angeles CA 1316
11 San Diego CA 1335
12 Detroit MI 1356
13 New York NY 1411
14 St Louis MO 1483
15 Phoenix AZ 1733
16 Dallas TX 1799
17 Minneapolis MN 2000
18 Houston TX 2155
19 San Francisco CA 2182
20 Boston MA 2763
TOP 20 Foreclosure rates in the
Nationrsquos 20 largest metros in February 2015
Housing News Report is a monthly publication dedicated to helping investors succeed by providing them with timely and relevant information about the housing market
EXECUTIVE EDITORDaren Blomquist
MANAGING EDITOROctavio Nuiry
WRITERSDaren Blomquist Octavio Nuiry Peter Miller
ART DIRECTIONEunice Seo
CONTACT USPhone 8003069886
LETTERS TO THE EDITORE-mail editorforeclosurenewsreportcomMail Housing News Report 1 Venture Plaza Suite 300 Irvine CA 92691
Housing News Report is a monthly publication dedicated to helping investors succeed by providing them with timely and relevant information about the housing market
EXECUTIVE EDITORDaren Blomquist
MANAGING EDITOROctavio Nuiry
WRITERSDaren Blomquist Octavio Nuiry Peter Miller
ART DIRECTIONEunice Seo
CONTACT USPhone 8003069886
LETTERS TO THE EDITORE-mail editorforeclosurenewsreportcomMail Housing News Report 1 Venture Plaza Suite 300 Irvine CA 92691