Kentucky Real Estate Business

Posts Tagged ‘Prices’

Article by Leon Belenky

Florida is well-known for having a great deal of condominium property on the market. Many of these properties are located in some of the most exclusive areas of Florida. Seaside locations are particularly popular for these residences and the price of the land makes high-rises and other structures not only attractive and easy on space but feasible. After the real estate bubble burst, many of these condominiums dropped drastically in price. While this did constitute a crisis, like all crises, it also constituted an opportunity. That opportunity is still alive in the market today.

Florida saw significant decreases in the price of homes, even in particularly desirable areas. Sunny Isles Beach, for instance, one of the most exclusive areas in Miami-Dade County, has seen significant decreases in property prices. While the market may still be showing the effects of the real estate crunch in the form of reduced prices, it will likely not remain this way for too long. Sunny Isles Beach has long been a favorite with the upscale crowd and, with prices as low as they are at present, it’s likely that the condominiums will begin to sell fast in the near future.

The trend on Sunny Isles Beach mirrors that of Florida condominium prices at large. Between August of 2008 and August of 2009, the average price of a condominium went from almost 1,000 to approximately 8,000. This represents a 32 percent decrease in the average price of this type of housing. At the same time, mortgage rates dropped. Between the availability of financing with more attractive rates and the prices being at a low point, condominiums are sure to start selling quickly again. Florida, in fact, has shown an uptick in home sales of all types in the last year.

In the same period from August of 2008 to August of 2009, real estate sales climbed 45% in the state of Florida. The more desirable locations are beginning to see demand increase again. As that demand increases, of course, prices will quickly ascend to a level more in line with what one would expect of the Florida market. In luxury markets such as Sunny Isles Beach, that increase is likely right around the corner. For those who have dreamed of owning a condo on this barrier island, there will likely not be a better time to buy than the present.

http://goarticles.com/article/Recovery-Economics-and-Condominium-Prices/2405942/

If you have owned a home, or any piece of residential real estate including condos, and vacation homes than you are aware of the run up in prices that occurred for a five year period that ended more than a year ago. In terms of investing, owning a home for half a century has been a wonderful way to build wealth. It is one of the few investing methods where you could actually live in your investment, while it increased in value. Most investors are not aware that from World War II until last year, there was never a single year where home prices fell on a national level, until last year that is.

Homeowners have counted on a steady annual increase in the price of the house they were living in to create a wealth effect. For many, it was their only source of forced savings. It was also a participation in the American dream – owning your own home, and living in it.

Studies are now available which show that at the end of last year, a number of housing markets declined. Actually, 149 different markets experienced the decline. Hardest hit were the East and West Coast of the US, and the Northeast cities.

In you were in Florida at all last year, it was impossible not to see thousands of super cranes going about the process of building 20 to 50 story condominiums. The vast majority of these condos were bought on speculation with the buyer signing the contract never anticipating the need to close on the contract.

We have not seen a mass number of walkways yet. These are people that signed non-recourse agreements with the builder, and are in a position to walk away from the agreement without having to write a check. They will forfeit the deposit they put down however.

Florida may well be the state taking the biggest hit in real estate. Sarasota was down 18% by year-end, while Melbourne was experiencing a 17 % decline. We are talking about actual prices being down. On a national level prices were down 2.7%.

Many analysts haven’t quite figured out what this means? Are motivated sellers holding onto residences longer in anticipation of getting their higher price later on? Are some sellers withdrawing their homes from the market, or perhaps not putting them on the market at all, awaiting prices firming up, perhaps later this year?

What about sales themselves?

In addition to prices being down, there are less actual sales taking place, which is leading to a larger inventory of unsold homes. Forty different states have reported a decline in the number of sales taking place. On a national level the number comes to a 10.1% decline in the actual number of homes being sold regardless of price. Three different localities have reported physical sales being down more than 30%. They include Nevada, Florida, and the District of Columbia. Virginia reported a 20% decline.

There were six states that reported an increase in the number of sales taking place – that’s six out of fifty. They included Alaska, Arkansas, Illinois, Kentucky, Mississippi, and Texas. There was no impact on Utah where sales were flat.

What you really need to look at is the VACANCY rate. The vacancy rate is the number of homes on the market where nobody is living in them, and they are for sale. On a national level, this number always seems to hover around 2%. At year-end, the number went to 2.7%. This is a massive increase because 2.7% is the highest it has been to in 50 years, and that’s only because they started figuring out the number 50 years ago.

You’ve got owners out there who are just waiting, and won’t sell at a lower price than the price they want. This accounts for the increased vacancy rate. On top of that you have another issue. There does come a point where a seller may have to sell. He will take what he can get, even though it establishes a new lower base from which everything else can trade.

Once this base is established than other buyers and sellers see it. The seller reacts with alarm. The buyer reacts with glee, but trepidation also because the buyer doesn’t know if prices are going lower still. This is how panic selling sets in, and no buyers. The buyers walk away, waiting for still lower prices

It’s the same as the stock market, sellers once they have seen higher prices, don’t want to sell at a lower price. Many prefer to wait, hoping, and it is hope that the price will come back. Only the forced seller will do the deal. It might be an estate, or divorce settlement, or a housing relocation that forces the actual sale. It doesn’t matter, once that sale hits the marketplace for all to see, there is a new adjustment in the real estate market.

Where’s the BIAS Now – UP or DOWN?

It is difficult to tell if the year-end numbers have wrenched out the secular excesses that have taken place in the real estate markets in the last five years while everything went crazy on the upside. There may be more to go. If you look at the stock market, most of the house builders bottomed out several months ago when they all made new multi-year lows. Since then, they have rallied nicely. If the real estate market has more to go on the downside, than these stocks will probably have to build double-bottoms before the decline is actually over.

If however, the vacancy rate picks up from here, and price declines have seen their bottom, than most of the damage is behind us. The economy overall and interest rate seem fine, so we don’t expect damage coming from a decline in GDP this year. What seems to be happening is that we are looking at a wearing down of the excesses produced since the late 1990′s in residential real estate in this country?

The geographical segments of the country that experienced the most increases in real estate prices are now the ones experiencing the declines. It’s the same story, and the story never changes, only the areas of the country being affected changes. Our work shows that prices, and vacancy rates have a way to go yet on the downside. At the same time, we believe the housing stocks may decline, but the absolute bottoms established months ago will hold. We are already off those bottoms.

Goodbye and Good Luck

Richard Stoyeck

If you have owned a home, or any piece of residential real estate including condos, and vacation homes than you are aware of the run up in prices that occurred for a five year period that ended more than a year ago. In terms of investing, owning a home for half a century has been a wonderful way to build wealth. It is one of the few investing methods where you could actually live in your investment, while it increased in value. Most investors are not aware that from World War II until last year, there was never a single year where home prices fell on a national level, until last year that is.

Homeowners have counted on a steady annual increase in the price of the house they were living in to create a wealth effect. For many, it was their only source of forced savings. It was also a participation in the American dream – owning your own home, and living in it.

Studies are now available which show that at the end of last year, a number of housing markets declined. Actually, 149 different markets experienced the decline. Hardest hit were the East and West Coast of the US, and the Northeast cities.

In you were in Florida at all last year, it was impossible not to see thousands of super cranes going about the process of building 20 to 50 story condominiums. The vast majority of these condos were bought on speculation with the buyer signing the contract never anticipating the need to close on the contract.

We have not seen a mass number of walkways yet. These are people that signed non-recourse agreements with the builder, and are in a position to walk away from the agreement without having to write a check. They will forfeit the deposit they put down however.

Florida may well be the state taking the biggest hit in real estate. Sarasota was down 18% by year-end, while Melbourne was experiencing a 17 % decline. We are talking about actual prices being down. On a national level prices were down 2.7%.

Many analysts haven’t quite figured out what this means? Are motivated sellers holding onto residences longer in anticipation of getting their higher price later on? Are some sellers withdrawing their homes from the market, or perhaps not putting them on the market at all, awaiting prices firming up, perhaps later this year?

What about sales themselves?

In addition to prices being down, there are less actual sales taking place, which is leading to a larger inventory of unsold homes. Forty different states have reported a decline in the number of sales taking place. On a national level the number comes to a 10.1% decline in the actual number of homes being sold regardless of price. Three different localities have reported physical sales being down more than 30%. They include Nevada, Florida, and the District of Columbia. Virginia reported a 20% decline.

There were six states that reported an increase in the number of sales taking place – that’s six out of fifty. They included Alaska, Arkansas, Illinois, Kentucky, Mississippi, and Texas. There was no impact on Utah where sales were flat.

What you really need to look at is the VACANCY rate. The vacancy rate is the number of homes on the market where nobody is living in them, and they are for sale. On a national level, this number always seems to hover around 2%. At year-end, the number went to 2.7%. This is a massive increase because 2.7% is the highest it has been to in 50 years, and that’s only because they started figuring out the number 50 years ago.

You’ve got owners out there who are just waiting, and won’t sell at a lower price than the price they want. This accounts for the increased vacancy rate. On top of that you have another issue. There does come a point where a seller may have to sell. He will take what he can get, even though it establishes a new lower base from which everything else can trade.

Once this base is established than other buyers and sellers see it. The seller reacts with alarm. The buyer reacts with glee, but trepidation also because the buyer doesn’t know if prices are going lower still. This is how panic selling sets in, and no buyers. The buyers walk away, waiting for still lower prices

It’s the same as the stock market, sellers once they have seen higher prices, don’t want to sell at a lower price. Many prefer to wait, hoping, and it is hope that the price will come back. Only the forced seller will do the deal. It might be an estate, or divorce settlement, or a housing relocation that forces the actual sale. It doesn’t matter, once that sale hits the marketplace for all to see, there is a new adjustment in the real estate market.

Where’s the BIAS Now – UP or DOWN?

It is difficult to tell if the year-end numbers have wrenched out the secular excesses that have taken place in the real estate markets in the last five years while everything went crazy on the upside. There may be more to go. If you look at the stock market, most of the house builders bottomed out several months ago when they all made new multi-year lows. Since then, they have rallied nicely. If the real estate market has more to go on the downside, than these stocks will probably have to build double-bottoms before the decline is actually over.

If however, the vacancy rate picks up from here, and price declines have seen their bottom, than most of the damage is behind us. The economy overall and interest rate seem fine, so we don’t expect damage coming from a decline in GDP this year. What seems to be happening is that we are looking at a wearing down of the excesses produced since the late 1990′s in residential real estate in this country?

The geographical segments of the country that experienced the most increases in real estate prices are now the ones experiencing the declines. It’s the same story, and the story never changes, only the areas of the country being affected changes. Our work shows that prices, and vacancy rates have a way to go yet on the downside. At the same time, we believe the housing stocks may decline, but the absolute bottoms established months ago will hold. We are already off those bottoms.

Goodbye and Good Luck

Richard Stoyeck

After taking a steep dip in 2009, house prices in Cape Town are slowly on the increase, statistics from Absa Home Loans show.

While house prices declined in all provinces, metropolitan areas and coastal regions in real terms in 2009, the Western Cape experienced one of the sharpest declines with a 7,6% decrease in real terms during the year, according to Absa’s latest statistics.

In Cape Town, house prices were down 0,7% in nominal terms, and 7,3% in real terms. Of all metropolitan areas in the country, only the greater Johannesburg area performed better than the Cape Town property market with nominal house price growth of 2,8% last year.

In the last quarter of 2009 – the latest available statistics – an average house in Cape Town cost R1,11 million, indicating an increase of 1,4% on the last quarter of 2008. This is showing that the housing market is slowly getting out of the doldrums, with banks’ forecasting growth for 2010 of between 6% and 8%.

In the middle segment, or houses between 80m² and 400m², the average Cape Town house cost nearly R1,7 million by the end of 2009, and improvement of 6,1% compared to the end of 2008.

Investors are also returning to the Cape Town property market to buy prime property at good prices before the market takes off again. In addition, increased lending from banks and relatively low interest rates are also expected to boost the market this year.

Cape Town, with a reputation for being extremely well managed compared to South Africa’s other metros, is also an award-winning tourist destination. Some estate agents believe that World Cup fever will provide additional impetus in the Cape Town property market, especially in popular tourist areas like the city centre and along the Atlantic Seaboard.

Summer is finally over and Apartment communities that maintained 90-100% occupancy levels throughout the summer have now been bombarded with new fall and winter time notices to vacate. Apartment communities pre-lease apartments based on their notices to vacate which are usually given 60-90 days out from the resident’s move date or lease end date.

Most long term tenants are being pushed out of their apartments with rental increases up to 0. Many of my clients recently call me discouraged stating that they have been a perfect resident for 5 years or more and dont understand why their aparmtent community is so anxious to “stick it to them” when it comes time to renew their leases.

The first question I ask them is how much they are paying currentlly ie; a client we’ll call Leslie that I am helping move currently. Leslie told me that she is paying 5 for a 740sf apartment in a community she has lived at for 5 years and is only 7 years old, and they want to raise her rent to 5. The first thing I told her was that the community wanted to raise her rent 0 due to the fact that since she leased there 5 yrs ago the market had completely changed. Unfortunately the only people that view long term occupants at an apartment community as an asset are the occupants themselves.

The truth of the matter is that Leslie and many others around Austin whom of which have been exemplary tenants are being viewed as a loss to their apartment communities. With a shortage of available apartments in Austin the market has changed. For example 5 years ago in South Austin you could get a nice apartmnet at an A class property for between 6-0. Now you cant even get near an A class property in South Austin for less than 0 and that would be for a 1 bedroom apartment. Availability pushes pricing. If a guy has 50 apartments available they lower prices and offer up a massive upfront concession ie; 1 month free 2 months free etc. But when a management company looks down and sees that they are 96% full which has been the case most of this summer and historically most summers then their rates rise to the market rates (the highest rates they can charge for a particular unit). Long term residents are being viewed as a loss and therefore pushed out.

The good news is that in the last two or three months there have been at least twenty new apartment communities open.  There are also at least 100 more on the horizon. This type of news and the historically slow fall and winter months are forcing apartment communities to drop their prices and drop them fast. There are at least twenty communities that I can think of right now that have dropped their prices – in the last month from August pricing to compete with the new properties that have opened or are opening up in their vicinity.

For example the Wyndhaven apartments on Wells Branch. For years wyndhaven was only one of two A property options in the Wells Branch area. Their smallest 1 bdrm apartment 630sf was going for 9 a month. Then comes the Verde Oak Park apartments that opened a month or two ago right next door. The day Verde Oak Park opened their doors Wyndhaven went to 9 on the same floor plan. It still didnt help them though Verde Oak Park has a similar square footage for 0 Brand New Never Been Lived In! Then they were offering two months free upfront. Well if you average out the two months free over the lease term which was 13 months (aka a prorate) 20 is the total concession or (special) divided by the minimum lease term which was 13 months thats 20 divided by 13 months equaling 9.23. The 9.23 is your average monthly concession. You then subtract the 9.23 from the monthly rental rate. 0 minus 9.23 equals 0.77 a month for 13 months. Plus these apartments contain granite countertops, washer and Dryer etc and are BRAND NEW and have NEVER BEEN LIVED in.

So, yes rental rates are dropping dramatically with the rise of new communities you just can’t be fooled by upfront numbers anymore. My advice is that you always contact a Real Estate professional procurement of leasing transactions for the consumer are always 100% FREE. And recommended. Yes rates are higher but if you look past the first picture of the rate being 0 when you’re pricerange is 0 and you end up at Wyndhaven which is over ten years old and a much lesser quality class A property at 9 then the only one to blame is yourself. With the newer communities trying to fill up their properties they are offering great upfront concessions that will bring the rates back down.

You should always contact an apartment locator before looking at apartments on your own. If that apartment locator dosent find you the best deal available and you are not happy enough to move in then they dont get paid that is your insurance. Austin Apartment Guy would be glad to either help you find an apartment or counsel you on the leasing process. You can contact us through our website http://www.austinapartmentguy.com . 

It has become common knowledge amongst real estate buyers, sellers and agents that most people do their shopping for homes on the internet. And this trend is increasing steadily right across the U.S.

In fact, Realtor.com keeps track of trends of this sort by surveying real estate buyers and sellers. In the case of Orange County, California, their surveys show that online searches for homes in Orange County increased by an impressive 58.9% this fall over 2008.

That may have something to do with the bottom falling out of the housing business a couple of years ago. For example, it could be that since fewer people have been buying for the last two years, there is pent up demand manifesting itself in greater search activity online. Online searches are essentially anonymous, and therefore it is easier to just look in a non-committal way than it is to contact a real estate agent directly and actually go out and look at homes. There may be more searchers, but there are still relatively few buyers.

In any event, increased search activity indicates that people are at least looking, even if they aren’t buying like they once were. Orange County’s impressive looking numbers are actually relatively low compared to other places like Las Vegas (140% increase) and even Los Angeles (68%). That obviously has something to do with the cost of homes in Orange County.

The fact is, Orange County is a very challenging place to buy a home. According to recent statistics the County was the 6th least affordable housing market in the entire U.S. during the 2nd quarter of 2009. That means that even though prices have come down significantly over the last 2 years, they still remain very high in Orange County. And one suspects that many prospective home buyers are waiting for them to come down even more.

A very significant exception to the high cost of homes in Orange County is Laguna Woods Village, a self-contained retirement community with homes of various styles and sizes. Laguna Woods Village has in excess of 370 homes for sale, and the number of homes that have sold over last year at the same time has fallen a full 22%. That is is spite of the fact that Laguna Woods Village is rated among the top 10% “most affordable” communities in the U.S.

Communities are considered “affordable” (or not) by comparing average house prices to average incomes. In Orange County average condo prices were more than $300,000 – $315,528 to be exact at last report. Compare that to the average condo price in Laguna Woods Village: just $200,000 – fully 33% below the Orange County price.

Obviously the last two years have been bad for home owners, real estate developers, builders, real estate agents, mortgage companies, banks, and anybody else even remotely connected with the real estate business. But the fact is, the market is starting to turn around – just as all the unflappable optimists have been saying it would. For example, four months ago listed homes in Laguna Woods were on the market an average of 150 days. In September that number was down to 102 days.

That may not seem very significant to you, but to people who watch the real estate market, it means things are starting to move. That can only mean one thing. All those prices that have plummeted to the bottom are going to start moving up. The fantastic deals that are available right now are soon going to be gobbled up and things will start getting back to normal.

If you have owned a home, or any piece of residential real estate including condos, and vacation homes than you are aware of the run up in prices that occurred for a five year period that ended more than a year ago. In terms of investing, owning a home for half a century has been a wonderful way to build wealth. It is one of the few investing methods where you could actually live in your investment, while it increased in value. Most investors are not aware that from World War II until last year, there was never a single year where home prices fell on a national level, until last year that is.
Homeowners have counted on a steady annual increase in the price of the house they were living in to create a wealth effect. For many, it was their only source of forced savings. It was also a participation in the American dream – owning your own home, and living in it.
Studies are now available which show that at the end of last year, a number of housing markets declined. Actually, 149 different markets experienced the decline. Hardest hit were the East and West Coast of the US, and the Northeast cities.
In you were in Florida at all last year, it was impossible not to see thousands of super cranes going about the process of building 20 to 50 story condominiums. The vast majority of these condos were bought on speculation with the buyer signing the contract never anticipating the need to close on the contract.
We have not seen a mass number of walkways yet. These are people that signed non-recourse agreements with the builder, and are in a position to walk away from the agreement without having to write a check. They will forfeit the deposit they put down however.
Florida may well be the state taking the biggest hit in real estate. Sarasota was down 18% by year-end, while Melbourne was experiencing a 17 % decline. We are talking about actual prices being down. On a national level prices were down 2.7%.
Many analysts haven’t quite figured out what this means? Are motivated sellers holding onto residences longer in anticipation of getting their higher price later on? Are some sellers withdrawing their homes from the market, or perhaps not putting them on the market at all, awaiting prices firming up, perhaps later this year?
What about sales themselves?
In addition to prices being down, there are less actual sales taking place, which is leading to a larger inventory of unsold homes. Forty different states have reported a decline in the number of sales taking place. On a national level the number comes to a 10.1% decline in the actual number of homes being sold regardless of price. Three different localities have reported physical sales being down more than 30%. They include Nevada, Florida, and the District of Columbia. Virginia reported a 20% decline.
There were six states that reported an increase in the number of sales taking place – that’s six out of fifty. They included Alaska, Arkansas, Illinois, Kentucky, Mississippi, and Texas. There was no impact on Utah where sales were flat.
What you really need to look at is the VACANCY rate. The vacancy rate is the number of homes on the market where nobody is living in them, and they are for sale. On a national level, this number always seems to hover around 2%. At year-end, the number went to 2.7%. This is a massive increase because 2.7% is the highest it has been to in 50 years, and that’s only because they started figuring out the number 50 years ago.
You’ve got owners out there who are just waiting, and won’t sell at a lower price than the price they want. This accounts for the increased vacancy rate. On top of that you have another issue. There does come a point where a seller may have to sell. He will take what he can get, even though it establishes a new lower base from which everything else can trade.
Once this base is established than other buyers and sellers see it. The seller reacts with alarm. The buyer reacts with glee, but trepidation also because the buyer doesn’t know if prices are going lower still. This is how panic selling sets in, and no buyers. The buyers walk away, waiting for still lower prices
It’s the same as the stock market, sellers once they have seen higher prices, don’t want to sell at a lower price. Many prefer to wait, hoping, and it is hope that the price will come back. Only the forced seller will do the deal. It might be an estate, or divorce settlement, or a housing relocation that forces the actual sale. It doesn’t matter, once that sale hits the marketplace for all to see, there is a new adjustment in the real estate market.
Where’s the BIAS Now – UP or DOWN?
It is difficult to tell if the year-end numbers have wrenched out the secular excesses that have taken place in the real estate markets in the last five years while everything went crazy on the upside. There may be more to go. If you look at the stock market, most of the house builders bottomed out several months ago when they all made new multi-year lows. Since then, they have rallied nicely. If the real estate market has more to go on the downside, than these stocks will probably have to build double-bottoms before the decline is actually over.
If however, the vacancy rate picks up from here, and price declines have seen their bottom, than most of the damage is behind us. The economy overall and interest rate seem fine, so we don’t expect damage coming from a decline in GDP this year. What seems to be happening is that we are looking at a wearing down of the excesses produced since the late 1990′s in residential real estate in this country?
The geographical segments of the country that experienced the most increases in real estate prices are now the ones experiencing the declines. It’s the same story, and the story never changes, only the areas of the country being affected changes. Our work shows that prices, and vacancy rates have a way to go yet on the downside. At the same time, we believe the housing stocks may decline, but the absolute bottoms established months ago will hold. We are already off those bottoms.
Goodbye and Good Luck
Richard Stoyeck

Summer is finally over and Apartment communities that maintained 90-100% occupancy levels throughout the summer have now been bombarded with new fall and winter time notices to vacate. Apartment communities pre-lease apartments based on their notices to vacate which are usually given 60-90 days out from the resident’s move date or lease end date.

Most long term tenants are being pushed out of their apartments with rental increases up to $200. Many of my clients recently call me discouraged stating that they have been a perfect resident for 5 years or more and dont understand why their aparmtent community is so anxious to “stick it to them” when it comes time to renew their leases.

The first question I ask them is how much they are paying currentlly ie; a client we’ll call Leslie that I am helping move currently. Leslie told me that she is paying $625 for a 740sf apartment in a community she has lived at for 5 years and is only 7 years old, and they want to raise her rent to $725. The first thing I told her was that the community wanted to raise her rent $100 due to the fact that since she leased there 5 yrs ago the market had completely changed. Unfortunately the only people that view long term occupants at an apartment community as an asset are the occupants themselves.

The truth of the matter is that Leslie and many others around Austin whom of which have been exemplary tenants are being viewed as a loss to their apartment communities. With a shortage of available apartments in Austin the market has changed. For example 5 years ago in South Austin you could get a nice apartmnet at an A class property for between 6-$700. Now you cant even get near an A class property in South Austin for less than $900 and that would be for a 1 bedroom apartment. Availability pushes pricing. If a guy has 50 apartments available they lower prices and offer up a massive upfront concession ie; 1 month free 2 months free etc. But when a management company looks down and sees that they are 96% full which has been the case most of this summer and historically most summers then their rates rise to the market rates (the highest rates they can charge for a particular unit). Long term residents are being viewed as a loss and therefore pushed out.

The good news is that in the last two or three months there have been at least twenty new apartment communities open.  There are also at least 100 more on the horizon. This type of news and the historically slow fall and winter months are forcing apartment communities to drop their prices and drop them fast. There are at least twenty communities that I can think of right now that have dropped their prices $50-$75 in the last month from August pricing to compete with the new properties that have opened or are opening up in their vicinity.

For example the Wyndhaven apartments on Wells Branch. For years wyndhaven was only one of two A property options in the Wells Branch area. Their smallest 1 bdrm apartment 630sf was going for $769 a month. Then comes the Verde Oak Park apartments that opened a month or two ago right next door. The day Verde Oak Park opened their doors Wyndhaven went to $679 on the same floor plan. It still didnt help them though Verde Oak Park has a similar square footage for $710 Brand New Never Been Lived In! Then they were offering two months free upfront. Well if you average out the two months free over the lease term which was 13 months (aka a prorate) $1420 is the total concession or (special) divided by the minimum lease term which was 13 months thats $1420 divided by 13 months equaling $109.23. The $109.23 is your average monthly concession. You then subtract the $109.23 from the monthly rental rate. $710 minus $109.23 equals $600.77 a month for 13 months. Plus these apartments contain granite countertops, washer and Dryer etc and are BRAND NEW and have NEVER BEEN LIVED in.

So, yes rental rates are dropping dramatically with the rise of new communities you just can’t be fooled by upfront numbers anymore. My advice is that you always contact a Real Estate professional procurement of leasing transactions for the consumer are always 100% FREE. And recommended. Yes rates are higher but if you look past the first picture of the rate being $710 when you’re pricerange is $650 and you end up at Wyndhaven which is over ten years old and a much lesser quality class A property at $679 then the only one to blame is yourself. With the newer communities trying to fill up their properties they are offering great upfront concessions that will bring the rates back down.

You should always contact an apartment locator before looking at apartments on your own. If that apartment locator dosent find you the best deal available and you are not happy enough to move in then they dont get paid that is your insurance. Austin Apartment Guy would be glad to either help you find an apartment or counsel you on the leasing process. You can contact us through our website http://www.austinapartmentguy.com . 

After taking a steep dip in 2009, house prices in Cape Town are slowly on the increase, statistics from Absa Home Loans show.

While house prices declined in all provinces, metropolitan areas and coastal regions in real terms in 2009, the Western Cape experienced one of the sharpest declines with a 7,6% decrease in real terms during the year, according to Absa’s latest statistics.

In Cape Town, house prices were down 0,7% in nominal terms, and 7,3% in real terms. Of all metropolitan areas in the country, only the greater Johannesburg area performed better than the Cape Town property market with nominal house price growth of 2,8% last year.

In the last quarter of 2009 – the latest available statistics – an average house in Cape Town cost R1,11 million, indicating an increase of 1,4% on the last quarter of 2008. This is showing that the housing market is slowly getting out of the doldrums, with banks’ forecasting growth for 2010 of between 6% and 8%.

In the middle segment, or houses between 80m² and 400m², the average Cape Town house cost nearly R1,7 million by the end of 2009, and improvement of 6,1% compared to the end of 2008.

Investors are also returning to the Cape Town property market to buy prime property at good prices before the market takes off again. In addition, increased lending from banks and relatively low interest rates are also expected to boost the market this year.

Cape Town, with a reputation for being extremely well managed compared to South Africa’s other metros, is also an award-winning tourist destination. Some estate agents believe that World Cup fever will provide additional impetus in the Cape Town property market, especially in popular tourist areas like the city centre and along the Atlantic Seaboard.