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Non-Tech : Investing in Real Estate - Creative Opportunities -- Ignore unavailable to you. Want to Upgrade?

To: John Vosilla who wrote (1289)	2/4/2013 12:48:20 AM
From: tejek	Read Replies (1) \| Respond to of 2722

But 2012 foreclosure activity increased in eight of the 20 largest metros, led by Tampa (80 percent increase), Miami (36 percent increase), Baltimore (34 percent increase), Chicago (30 percent increase), and New York (28 percent increase). Interesting. I imagine the banks have started foreclosing on properties in these markets because these markets now have become strong enough to take those foreclosures in stride. BTW Marcus and Millichap has sent me their 2013 National Apt Report that shows employment and apt projections for the major metro markets this coming year. Its a PDF so I can't post it on the thread, but I can cut and paste the analysis of any metro in which you all are interested. To give you an example, here is their 2013 analysis for Miami: Miami As Foreign Capital Makes Inroads, Apartments Poised for Further Gains The improving job market will sustain low vacancy and strengthen property incomes in Miami-Dade County during 2013. Across the market, deep job cuts have slowed drastically since the recession and sufficient hiring has since raised total employment to within 5 percent of its pre-recession peak. Payrolls at bars, restaurants, hotels and stores currently exceed previous highs, while a new round of condo construction and port improvement projects could lift construction employment in the months ahead and drive additional demand for rental housing. Projected completions of market-rate rentals this year will only replace a portion of the units removed for conversion during the last boom cycle and preserve the county’s favorable balance of tenant demand to rental stock. The county has 24,000 fewer market-rate apartments than 10 years ago, while more than 80,000 households were created over the same stretch. Strong asset performance and expectations of a more robust economy continue to sustain a high degree of interest in Miami-Dade apartment properties among leveraged and cash-laden foreign buyers. The limited number of assets on the market will maintain downward pressure on cap rates, which can vary widely across the county. Properties in high-density, supply constrained Miami Beach, for example, often change hands at first-year returns of less than 5 percent, while assets in Coral Gables trade in the low-6 percent range. Apartment complexes in secondary areas outside of the urban core, including the southern section of the county, trade at cap rates closer to 7 percent. Interest in development sites in the county’s high-density sections remains keen, while assets in beachfront communities also garner attention. 2013 Market Outlook ¦ 2013 NAI Rank: 21, Down 1 Place. Expectations for an outsized improvement in vacancy were offset by lower scores for employment and rent growth, pushing down the metro in the NAI. ¦ Employment Forecast: Employers will add 22,300 jobs in Miami-Dade this year, representing a 2.2 percent increase in total employment. A mere 1,200 positions were created in 2012. ¦ Construction Forecast: Developers will bring online 1,000 units during 2013. Approximately 400 market-rate rentals were completed last year and less than 1,000 rentals came online in the preceding two years. ¦ Vacancy Forecast: Following a plunge of 80 basis points last year, vacancy will decrease 40 basis points in 2013 to end the year at 3.5 percent. ¦ Rent Forecast: Asking rents will surpass their pre-recession high in 2013, advancing 3.5 percent to $1,147 per month. In 2012, asking rents rose 3.1 percent. After climbing 4.0 percent last year, effective rents will gain 3.6 percent to $1,098 per month. ¦ Investment Forecast: Bids from Canadian, Israeli and Latin American investors will sustain a liquid investment market in 2013. Market Forecast Employment: 2.2%