Mortgage rates for 30-year fixed mortgages fell this week, with the current rate borrowers were quoted on Zillow Mortgages at 3.81 percent, down from 3.96 percent at this same time last week.
The 30-year fixed mortgage rate dropped Wednesday, then hovered around 3.88 percent for most of the week before falling to the current rate.
'Rates dropped to the lowest level since June 2013 on news that the Federal Reserve has more reservations about the health of the U.S. and global economy than expected, which in turn, may delay rate hikes,' said Erin Lantz, vice president of mortgages at Zillow. 'With little economic news planned to overshadow the Fed's latest comments, this week we expect rates to fairly remain stable, hovering just shy of 4 percent.'
Additionally, the 15-year fixed mortgage rate this morning was 2.96 percent, and for 5/1 ARMs, the rate was 2.70 percent.
By Laura Vecsey
Broadway Bound, Gyllenhaal Lists in L.A.
With a new gig in New York, it looks like Jake Gyllenhaal won't need his mid-century modern in Los Angeles. The 3-bedroom, 3-bathroom Hollywood Hills home has hit the market for $3.5 million.
The home's great room offers views of the city — 'sensational panoramic views,' according to the listing — and the outdoor space includes a patio, private yard and pool. It's nestled on almost two acres.
While Gyllenhaal has several movie winners under his belt, his next project is a Broadway production, Constellations, in which he'll co-star with Ruth Wilson.
Kelly Ripa Is No Longer Pent Up
Talk show host Kelly Ripa and her husband, Mark Consuelos, have parted with their swanky New York penthouse for $20 million.
The 5-bedroom SoHo apartment had been listed for as much as $24.5 million, but the couple settled on a pretty decent deal for the 6,792-square-foot residence that was all about high ceilings, a huge gourmet kitchen, two dining rooms and a big master suite.
In addition to a media room and 3,000-square-foot deck, the home included an indoor gym for the eternally fit and perky Ripa.
Michelle Williams' Brooklyn Home for Sale
She was an early adopter of the Boerum Hill neighborhood in Brooklyn back in 2005. And it was there on Smith Street that actress Michelle Williams stayed after the tragic death of her then-boyfriend Heath Ledger in 2008.
Now the 'My Week with Marilyn' star is ready to sell the corner home, which is listed for $7.5 million. The 4-story home is 22 feet wide and has a 3-car garage and a rooftop garden with a waterfall. It contains 6 bedrooms, 4.5 bathrooms and a 1,000-square-foot parlor.
Who needs Brooklyn when you've got the Upper East Side and a swell home called Gracie Mansion?
Not the new mayor of New York City.
Mayor Bill de Blasio has listed his Brooklyn home for rent, now that he and his family have moved into the famed mayoral residence along the East River. The mayor's 4-bedroom, 1-bath home was the kind of working man's abode that fit de Blasio's populist image during last year's mayoral campaign. But now it's for rent for $4,975 a month, according to StreetEasy.
By Laura Vecsey
Los Angeles Rental Fit for King & Queen
Well, so what if the monthly rent was $200,000? The Los Angeles-area home that rapper Jay Z and his fierce wife Beyonce camped out in this summer was the picture of modern luxury.
Now that the touring twosome is onto Paris, the 16,000-square-foot spread they temporarily called home is on the market for $45 million in the exclusive Holmby Hills area of Tinseltown.
The big stars no doubt appreciated the European flair, including the 20-foot ceilings in the grand entryway, plus the 7 bedrooms, 8.5 bathrooms, the tennis court and pool.
Daryl Hannah Ready to Sell Malibu Retreat
It's not exactly built for a mermaid, but Daryl Hannah's Malibu retreat is quite unique. Now the 'Splash' star and long-time environmental activist is selling her sustainable retreat for $4.25 million.
The listing isn't on the MLS. The Los Angeles real estate group, The Agency, is quietly shopping the 17-acre estate.
The new attempt to sell the oasis comes as rumors of a romance between Hannah and rock master Neil Young.
While Hannah, 53, and Young, 68, hit the road to save the planet on various causes, her California beach escape may attract a buyer who appreciates the property's unique indoor/outdoor/naturalist features.
The compound contains three buildings: a house with an art studio; a standalone master suite with a Japanese-style soaking tub and a fireplace; and a guest room with a loft and views of the ocean. There's also plenty of stained glass, a stone cottage and several gardens.
She Built Her Case, Now Nancy Grace Is Selling
After 18 years and a steady parade of contractors, legal commentator and host Nancy Grace is parting with her Atlanta residence. The home is pending sale at $1.599 million.
Grace bought the home in 1996 for $407,500, but has cycled through almost as many remodels as CNN has broadcast criminal trials.
Baseball Star Pitches AZ Estate Onto Market
San Francisco Giants starting pitcher Tim Lincecum has listed his Arizona mansion for sale for $4 million. But, for anyone who thinks the 30-year-old Seattle native's desert retreat might reflect his 'The Freak' nickname, forget it.
The 4-bedroom, 5.5-bathroom contemporary at 4793 E Charles Dr in Paradise Valley is a very mature and serene abode, even with its indoor basketball court with a retractable batting cage and theater room with an adjoining bar.
The 11,000-square-foot home is slick and tricked out with wood built-ins, limestone flooring, a granite-packed kitchen and sweeping views of the desert. Outdoors, there's a pool with two waterfalls, a whirlpool spa and sundeck, plus a built-in grilling station.
By Laura Vecsey
Sarah Jessica Parker, Matthew Broderick Relist Home
They have been proud 'Village People,' but Sarah Jessica Parker and Matthew Broderick are still looking for an exit plan.
Newly relisted at $22 million, the couple's 25-foot-wide, 6,800-square foot Greenwich Village townhouse was first on the market in 2012 - one year after they purchased the place for $18.995 million.
(Real Estate) Moves Like Jagger
Newlyweds Adam Levine and Behati Prinsloo are getting down to consolidating their holdings. First up: Selling Prinsloo's East Village duplex for $1.65 million.
The decision to sell the 1-bedroom apartment comes as the Maroon 5 front man and the Victoria's Secret model complete the purchase of a 2,700-square-foot loft in SoHo, which is reported to be under contract for $4.55 million.
The 3-bedroom, 2-bathroom apartment is in an historic cast-iron building awash in sleek glass and steel - a smooth move for the hot couple.
'The Big Unit' Selling Huge Arizona Home
Future Baseball Hall of Famer Randy Johnson is looking to downsize in the desert. The former Mariners and Diamondbacks ace is listing his 25,000-square-foot estate for $25 million in Paradise Valley.
Situated on a 5-acre parcel, the main residence features 24-foot ceilings, 7 bedrooms and 12 bathrooms - including a secluded master retreat with his-and-hers oversized vanities.
There's also a detached guesthouse; 1,700-square-foot fitness facility; a temperature-controlled wine cellar; an oversized 8-car motor court, billiards parlor and a dedicated 'pet suite.'
Mortgage rates for 30-year fixed mortgages rose this week, with the current rate borrowers were quoted on Zillow Mortgages at 4.05 percent, up from 3.96 percent at this same time last week.
The 30-year fixed mortgage rate gradually increased last week, peaking at 4.19 percent on Saturday before coming down to the current rate.
'Rates rose steadily last week despite the lackluster jobs report released on Friday,' said Erin Lantz, vice president of mortgages at Zillow. 'This week, with little domestic economic news slated for release, we expect international news to determine whether rates will keep rising, or fall back below 4 percent.'
Additionally, the 15-year fixed mortgage rate this morning was 3.11 percent, and for 5/1 ARMs, the rate was 2.88 percent.
Purchase Mortgage Application Activity
Zillow predicts tomorrow's seasonally adjusted Mortgage Bankers Association Weekly Application Index will show purchase loan activity increased by 4 percent from the week prior. To learn more about this Zillow analysis, click here.
By Laura Vecsey
Tennessee Calls Reese Witherspoon Home
Oscar-winning actress Reese Witherspoon has a new project: Renovating a historic mansion she bought last month in her hometown of Nashville, Tenn.
The stately white home sits at the end of a long driveway on a 6.5-acre flat lot in the upscale Oak Hill area. Witherspoon paid $1.95 million for the 4-bedroom, 3.5-bath property.
The 3,855-square-foot abode has an elegant staircase, three fireplaces and a paneled library, but needs major renovations. The nice part? Witherspoon will be near her parent's home when she undertakes the project.
Witherspoon put her Los Angeles-area estate on the market earlier this year for $10.5 million, according to Variety.
Rocky Mountain High Retreat For Sale
The man whose ode to Colorado made a huge splash in the airwaves back in the 1970s continues to be a legend in the Rocky Mountain state. Now John Denver's Aspen estate is for sale for $10.75 million.
The blond-haired singer, who sported wire-rimmed granny glasses, released his song 'Take Me Home, Country Roads' in 1971. He built a unique estate the next year. He entertained there and attracted so many fans that his neighbors asked him to build a gatehouse to keep down the commotion.
The estate was sold to its new owners after Denver's death in 1997, and while they have made some adjustments, the home still maintains the timeless and peaceful features that made it his Rocky Mountain oasis. There are four indoor fireplaces, an outdoor fireplace and decks looking over magnificent Rocky Mountain views. The singer had a recording studio in the guesthouse on the property.
Secluded Literary Masterpiece For Sale
J.D. Salinger was one of the most notoriously reclusive writers in America. Now, four years after his death, the writer's former New Hampshire home is for sale.
Situated on 12 acres at 342 Lang Road in Cornish, the home of the 'The Cather in the Rye' author is 2,900 square feet and listed for $679,000. There are 4 bedrooms, 5 bathrooms and a separate apartment over the garage. There are gardens and many private trails.
Salinger moved to Cornish in 1953 and eventually died in the town, though not at this address.
By Laura Vecsey
A Sign of Better Times for Zeta-Jones & Michael Douglas?
Parting ways with the past might be quite profitable for Catherine Zeta-Jones. The Welsh-born actress has listed the Bedford, NY home where she lived during her separation from Michael Douglas.
The $8.1 million brick colonial is for sale and the couple is reportedly back together.
The couple rented the 6-bedroom, 6-bath brick colonial at 541 Guard Hill Rd for about six months before buying it for $5.075 million in 2010. According to the listing, the home was recently renovated. There is a new guesthouse and a master suite with huge closets and a dressing room.
Zellweger Lists Her Connecticut Yankee Retreat
It completed her - for a little while. Now Renee Zellweger is ready to give the ultimate cold shoulder to the 1770s Connecticut country home.
Listed for $1.6 million, the historic rural retreat is set on 38 acres and overlooks the Quinebaug River in rural Pomfret Center.
There's no roughing it in this luxurious updated farmhouse, which was re-done in 2004 and sprawls 3,463 square feet. There's a chef's kitchen, beamed ceilings, a family room and a swimming pool. There are also 7 fireplaces - plenty enough mantel space to hold the actress's Oscar for her Best Supporting Actress award for 'Cold Mountain.'
Klum Closes the Deal
'Project Runway' host Heidi Klum has sold her 8.5-acre property in Brentwood Estates for $24 million. Klum had bought the place in 2010 with her ex-husband, Seal, and had the place completely done over. The Mediterranean-style villa has 8 bedrooms, 10 baths and spans 12,300 square feet.
Klum bought it for $14.2 million but pumped a lot of cash into the remodel, restoring doors, windows and thresholds, designing her dream closets and adding home technology and security. She also added a master bathroom with a view of the Pacific.
The home has a motor court with a fountain, an infinity-edge pool and spa, a koi pond, a formal rose garden, a rolling lawn for golf putting and driving, a children's playhouse and slide and 'secret gardens.' And that's just the outside.
By Laura Vecsey
Unfreezing Their Assets, Diggs & Menzel Selling in L.A.
With their impending divorce after 10 years of marriage, Taye Diggs and Idina Menzel are looking to unload their 5,000-square-foot Studio City home, listing the 3121 Oakdell Ln property for $2.995 million. The former couple bought the sleek, traditional 6-bedroom, 5-bathroom in 2010 for $2.09 million.
Menzel has had a huge year thanks to the movie 'Frozen.' She voiced Elsa in animated film, and its signature song, 'Let It Go,' was nominated for an Oscar.
Diggs is a stage, movie and TV actor best known for his roles in films such as 'Rent' and 'How Stella Got Her Groove Back' and the TV series 'Private Practice.' He and Menzel met while filming 'Rent' in the 1990s.
Leona Helmsley Estate Back on the Market
After a very 'taxing' history, the Greenwich, CT summer home where hotelier Leona Helmsley died in 2007 is back on the market. The new list price from the owners who bought the Helmsley estate: $65 million.
It is a house with a story - a juicy tabloid kind of story.
The completely-renovated mansion was at the center of the tax evasion scheme that landed Helmsley in jail in the 1990s, leading Helmsley to be infamously dubbed the 'Queen of Mean' and quoted as saying that 'only the little people pay taxes.'
The 17,493-square-foot brick estate sits on 40 acres on Round Road, one of the most famous parts of Greenwich. Among the luxuries they added to the home: a marble dance floor above the swimming pool, a $45,000 silver clock and $500,000 worth of jade art objects, according to The New York Times.
Helmsley's estate was originally listed for $123 million, but several price cuts led to its eventual sale to the current owners, for $35 million. The 1918 estate was soon re-listed at $42.9 million, and taken off the market for the massive remodel.
Mortgage rates for 30-year fixed mortgages rose this week, with the current rate borrowers were quoted on Zillow Mortgages at 4.08 percent, up from 4.03 percent at this same time last week.
The 30-year fixed mortgage rate hovered around 4.10 percent for the majority of the week, peaking at 4.17 percent on Thursday before easing back down to the current rate today.
'Mortgage rates were subdued last week as ongoing geopolitical concerns and economic softness in Europe encouraged investors to buy U.S. mortgage-backed securities as a safe haven,' said Erin Lantz, vice president of mortgages at Zillow. 'This week, we expect international headlines, rather than U.S. economic data, to drive any meaningful changes to mortgage rates.'
Additionally, the 15-year fixed mortgage rate this morning was 3.12 percent, and for 5/1 ARMs, the rate was 2.77 percent.
By Laura Vecsey
Shirley MacLaine Coming to 'Terms' With Her NM Estate
With a bent for all things New Age, Shirley MacLaine is looking for new signs of life outside of Santa Fe.
The decorated actress, at age 80, is parting with her beloved Plaza Blanca Ranch in Abiquiu, the New Mexico town where another great American artist, Georgia O'Keefe, spent her later years drawing inspiration from the high desert light.
Unlike O'Keefe, who spent her 90's in Abiquiu, MacLaine wants to move into town. She has listed the whopping 7,450-acre property for $18 million - a price she said came to her following a consultation with a psychic.
The estate includes an adobe-style main house, a yurt, caretaker's house, swimming pool, horse barn and chicken coop — all of it off-the-grid and sustainable, with greenhouses for growing food.
MacLaine has always said that the ranch was a spiritual retreat for her, but she's now looking for a less reclusive place to hang her auras.
Buyer Found for Megan Fox's Family Home
Megan Fox, the actress known for 'Transformers,' and her husband Brian Austin Green, best known for playing David Silver on 'Beverly Hills, 90210,' are looking for a new home. The couple, along with their two-year-old son and new baby, as well as Green's son from a previous marriage, will need plenty of play room.
While they look for the perfect new house, the couple has sold their Los Angeles Mediterranean at 2271 Glendower Ave. And home it was for the pair, who had transformed it from being 'very vanilla' according to the listing agent when they purchased it in 2009, into a bold, modern abode. It features large-scale wallpaper in many rooms, as well as colorful and patterned tiles in the kitchen and bathroom. The young pair also had the home fully updated with projection screens, a sound system and a home security system.
The 4-bedroom, 5-bathroom house is listed for $3.995 million.
Akon's Home of Some Heavenly Sounds For Sale
Akon is a five-time Grammy winner, but when he's not in the studio, the rapper and music producer is hitting some high notes on home styling.
'Lifted. Inspired. Alive. Music, the muse, beckons. The sound. The soul. The studio. This is Heaven,' the listing description states.
Akon poured some heart and soul into an extensive 'white-out' remodel after he bought the place last September for $1.9 million. Now someone has offered to purchase the heavenly abode.
In other words, Akon made everything bright white in the 4,098-square-foot home, including the interior and exterior walls, the furniture, patio, pool, floors, railings and accessories.
The home had been listed $3.5 million, but for $4 million, Akon said he would throw in the recording studio equipment and all the (white) furniture.
By Laura Vecsey
Supermodel-turned-powerhouse host Heidi Klum is selling the Brentwood Estates home she bought out of foreclosure in 2010 with her ex-husband, Seal.
The Mediterranean-style villa was done over in Klum style and includes 8 bedrooms, 10 bathrooms and more than 12,300 square feet. The 8.5-acre estate is just off Mandeville Canyon in one of L.A.'s most prestigious neighborhoods, hence the list price: $25 million.
The 'Project Runway' host bought the place for $14.2 million, but then threw some major cash in to make it her own little piece of heaven.
The spread includes a motor court with a fountain, an infinity-edge pool and spa, a koi pond, a formal rose garden, a rolling lawn for golf putting and driving, a children's playhouse and slide, ocean views and 'secret gardens.'
Inside, the dining room was imported from Paris, where it was a private dining room in a hotel. The previous owner reconstructed it in the home. In the library, there is an ornate wooden bookcase that came from Napoleon's French country home.
Golfing 'Housewife' Kyle Richards Scores Swinging Abode
'Real Housewives of Beverly Hills' star Kyle Richards and her husband, luxury real estate agent Mauricio Umansky, recently paid $2.35 million for a La Quinta getaway.
The luxurious vacation home has 6 bedrooms, 6.5 bathrooms and overlooks the 9th fairway of a golf course, with a mountain view beyond the cascading pool. Most important: The home is studded with 10 TVs, 28 speakers and 6 control pads - plenty of ways to watch episodes of her reality TV show.
This Hollywood Listing's Got Legs
Betty Grable continues to be a brand name in Tinseltown as one of the big stars of the silver screen in the golden era of moviemaking. Now the star's former home at 1280 Canyon Rd. in Bel-Air is on the market for $13.295 million.
Grable moved in after the home was built in 1937, the same year she married actor Jackie Coogan. Soon after, the couple appeared in 'Million Dollar Legs' and Grable became an American icon, thanks to her pinup popularity during World War II.
After Grable moved out in the late 1940s, the home went on to be owned by a couple of celebrities, including Jaclyn Smith from 'Charlie's Angels' and Stephen Stills, of Crosby, Stills & Nash.
The home is now owned by L.A. entertainment lawyer, Schuyler Moore, according to property records for the 6-bedroom, 7-bathroom home.
By Laura Vecsey
Jane Fonda Parting with Santa Fe Ranch
Actress and activist Jane Fonda is ready to part with her 2,000-acre New Mexico spread called Forked Lightning Ranch outside of Santa Fe. She has listed the home for sale for $19.5 million.
Fonda bought the ranch in 2000, around the time she separated for good from her ex-husband and CNN founder Ted Turner. He is the largest private owner of land in the nation, so it's apparent that Turner's love of Western lands rubbed off on Fonda. But now Fonda says she doesn't have time to visit anymore, even though it was her sanctuary.
Before choosing the location for the house she built on the land, Fonda said she spent two years fly-fishing, hiking, camping and horseback riding to learn everything about the property and its sunrises, sunsets, views and weather patterns.
The main home is almost 10,000 square feet, and there's also a guesthouse and stable.
Former Disney Estate Sells
The Carolwood estate in L.A.'s coveted Holmby Hills neighborhood once owned by Walt Disney has sold for $74 million.
The home was once listed for as much by $90 million and offered by the high-end brokerage to the stars, The Agency. But even at the final sale price, it was still the fourth most expensive home sale in the United States so far this year.
Carolwood measures 35,000 square feet and has 8 bedrooms and 17 bathrooms. The seller was investor Gabriel Brener, who co-owns the Houston Dynamo soccer club.
Sinatra's New York, New York Pad For Sale
Frank Sinatra's 'glittering grotto' in the sky is for sale in New York City. Of course, it has been completely renovated since they days when the place served as party central for Sinatra & company.
Located in The Edgewater, a white-glove building on a cul-de-sac overlooking the East River at 530 East 72nd Street in the Lenox Hill section of Manhattan, the apartment was a party pad for the Rat Pack and other high-society figures, including regulars like Mia Farrow, President Kennedy and Sammy Davis, Jr.
The residence - nicknamed the 'glittering grotto' by Andy Warhol -
had been listed for as high as $5.595 million, but its current list price is now $4.995 million.
The 3,200-square-foot residence has 4 bedrooms, 4 bathrooms, floor-to-ceiling windows and two wraparound terraces. The master suite upstairs includes a wet bar, and the master bedroom is elevated.
Mortgage rates for 30-year fixed mortgages fell this week, with the current rate borrowers were quoted on Zillow Mortgage Marketplace at 4.03 percent, down from 4.06 percent at this same time last week.
The 30-year fixed mortgage rate hovered around 4.08 percent for the majority of the week, before dropping modestly to the current rate on Tuesday morning.
'Last week, mortgage rates remained stable as the Federal Open Market Committee's policy statement contained few surprises,' said Erin Lantz, vice president of mortgages at Zillow. 'With little anticipated economic news this week, we expect rates will remain steady, similar to the pattern they've held for the past few weeks.'
Additionally, the 15-year fixed mortgage rate this morning was 3.0 percent, and for 5/1 ARMs, the rate was 2.79 percent.
By Laura Vecsey
Fan Buys Whitney Houston's NJ Estate
Whitney Houston's home has finally found an owner who feels the heat for property's unique past. Well, maybe not the 'Being Bobby Brown' part, but all the success Houston did enjoy before she succumbed to addiction.
Emergency room physician Matthew Krauthamer may have been in second grade when Houston's first big hit took the radio airwaves by storm back in 1987, but he became an enduring fan of the entertainer, who died of a drug overdose in 2012. He just paid $1.5 million for Houston's mansion, which sits on 5 acres and has been vacant for years.
Krauthamer, 33, has had time to admire the property, since he has lived just a few doors down in the same neighborhood. He said he intends to restore the 1980s home to its original form and live in the place: Not a bad idea, considering its privacy, the pool house, Jacuzzi and other features.
The 5-bedroom, 6-bathroom home at 22 N Gate Rd in Mendham, N.J., sprawls a generous 13,607 square feet. It has languished on and off the market since 2009, only to be sold in February to an investment company that paid $999,900. The house had been listed for as much as $1.75 million at one point.
Winning? Charlie Sheen Lists in L.A.
Charlie Sheen is looking to dump a 1989 contemporary in the Westlake Village neighborhood just a year after the actor bought the place for $1.6 million.
The new price for the 4-bedroom, 4-bathroom home at 1896 Smokey Ridge Ave. is $1.695 million. That includes hardwood floors, custom granite kitchen and an infinity pool with views of the city.
Reports also indicate that Sheen has sold his Mulholland Estates home, which he bought last summer from producer Mike Medavoy.
"Friends" Star Selling Modern Home
Matthew Perry's Malibu beach house has gotten a new slew of sleek furniture, just in time to help the TV star sell during a boom time in the Los Angeles housing market.
Perry has relisted his home at 3556 Sweetwater Mesa Rd for $12.5 million. The 4-bedroom, 6-bath home overlooking the Malibu pier had been listed for $13.5 million for about five months from 2011 to 2012.
This is just the latest real estate deal Perry is looking to make. In the past few years, he has sold other modern properties in Hollywood Hills and West Hollywood, and has also bought a new home on the Sunset Strip.
Lenny Kravitz Might Wonder: Is It Going to Go Developers Way?
Lenny Kravtiz may have hit it big as a rocker, but he's long been working the investment and real estate game. But what does Kravitz make of a builder's proposal to turn his childhood home in Brooklyn into a 6-unit apartment building?
The developer, who bought the building in December for $565,000, has appealed a ruling that went against his plan, so there's still a chance the historic home at 368 Throop Ave in Brooklyn's Bedford-Stuyvesant neighborhood could get an extreme makeover.
The building belonged to Kravitz's grandparents, but a young Lenny spent weekends there until he was 10, when his family moved to Los Angeles, where his actor-mother co-starred in 'The Jeffersons.'
By Laura Vecsey
Former Gov. Romney Sells Massachusetts Condo
So long, Massachusetts?
Mitt Romney, the former governor of the Bay State, and his wife, Ann, have parted company with their adopted home state. According to reports, the couple has sold their Belmont condo for $1.2 million.
The home served as the couple's home base during Romney's failed presidential run in 2012, and with much larger compounds in New Hampshire, Utah and California, it's not as if the Romneys needed another place to hang their hats.
According to the Boston Globe, the Romneys bought Unit 65 in the Woodlands at Belmont Hill development about four years ago for $895,000. They had owned another Boston area home for 20 years before selling that place for $3.5 million several years ago.
A Very Miniature Dollywood in Hollywood for Sale
Dolly Parton is hitting the road to support her new album, 'Blue Smoke,' but she first had to trim her real estate holdings. The darling of country music has listed her little ol' gated adobe-style home in West Hollywood for $1.39 million.
While it's no comparison to Dolly's theme-park grand place back in Pigeon Forge, Tenn., the two-bedroom, two-bathroom home is stuffed with country decor. Parton bought the 1,091-square-foot adode in 2007 for $1.2 million.
Classic Beauty: Hepburn's Connecticut Estate Gets Price Cut
Katharine Hepburn's former beach house in Connecticut is back on the market for $14.8 million. That's a far cry from the original $28 million once sought for the handsome residence in Old Saybrook.
According to listing notes, the place has also undergone a total renovation, which was overseen by New York builder Frank Sciame, who also restored such grand New York City gems like the Pierpont Morgan Library and Museum, St. Patrick's Cathedral and the Guggenheim Museum.
The 6-bedroom, 7.5-bathroom home is a grand 8,300 square feet and sits on a 1.5-acre parcel overlooking Long Island Sound, including its own stretch of beach.
The home has been in the Hepburn family's possession for years, and the great actress lived there until her death in 2003.
Megan Fox & Family Need More Room
Hollywood couple Megan Fox and Brian Austin Green have listed their Mediterranean home in the Los Feliz section of Los Angeles. The 4-bedroom, 5-bath home is on the market for $3.995 million.
The home has views of downtown L.A., Long Beach, Century City and the ocean, plus a swimming pool and lots of outdoor patio and yard space.
The couple styled it with bold wallpapers, Spanish tile and antique lighting. They also updated with technology, adding projection screens, a sound system and video camera surveillance.
Green, best known for playing David Silver on 'Beverly Hills, 90210,' has a son from a previous relationship. Green and Fox, of 'Transformers' fame, also have a 2-year-old and a new baby.
By Laura Vecsey
'Winter White House' Wows in Palm Beach
Once the winter home for John F. and Jackie Kennedy, the 15,000-square-foot mansion has hit the market after an impressive makeover that has apparently translated into a whopping price tag of $38.5 million.
According to Curbed, the Kennedy family last sold the 'Winter White House' in 1995 to investment bank CEO John K. Castle for $4.9M. The 1920s Mediterranean revival mansion looks ready for its close-up, courtesy of a $6 million renovation.
With 11 bedrooms, 15 bathrooms, the home was built in 1925 by architect Addison Mizner for department store magnate Rodman Wanamaker. Curbed reports that John F.'s dad Joseph P. Kennedy 'bought the place in 1933 for $120K.'
While the history of the place continues to unfold, and the renovations have spruced it up to new, glamorous heights, one thing about the property remains the same, regardless of how many Kennedy's slept there: Sweeping, direct ocean views.
Blockbuster Listing for Spielberg's Vacant Land in Hamptons
In Hollywood, Steven Spielberg is a creative force behind some of the film industry's biggest movies. On Long Island - not so much.
In 2008, the mighty director purchased a 3.3-acre waterfront parcel in East Hampton for $20 million. The property at 94 Apaquogue Rd. sported a traditional-styled 1900s-era home - which Spielberg promptly had demolished.
But if the idea had been to replace the home with something far more fitting for an entertainment industry titan, it did not happen. Now the lot has been listed for sale for $24.5 million.
But don't worry about whether Spielberg has a place to crash when he's hanging with the rich and famous in the tony enclave. Word is he's got two other properties in the area.
By Laura Vecsey
Let Him Ride! Dre Moving Up, Again
It's a long way from Compton, but then again, music industry mogul and rap kingpin Dr. Dre has been living large ever since he and Snoop Dogg were extolling the virtues of rolling in their 6-4s and sipping on gin and juice.
Now it appears the Los Angeles native will be moving into the house that Tom built. Tom Brady, that is.
According to reports, Dre has agreed to buy the mega-mansion built by the Patriots star and his Brazilian model wife, Gisele Bundchen for $40 million. The 20,000-square-foot estate in Brentwood, CA was featured in an
Architectural Digest photo spread after they completed construction back in 2011, but with homes in New York, Boston and around the globe, the couple decided to give up the custom estate they built for a reported $50 million.
The Old World-inspired imported limestone mansion on four acres is a truly palatial retreat, with reclaimed cobblestones in the motor court, waterfalls and ponds, and views of the Pacific Ocean. It has five bedrooms and nine bathrooms, and is built for 'large-scale entertaining.'
We believe when it comes large-scale, Dre's got that covered.
Mad Deal for This Home Far From Madison Ave
January Jones, aka Betty Francis on the hit series 'Mad Men,' has listed her Los Feliz Mediterranean for $1.495 million.
The remodeled abode carries a formal and contemporary style after she purchased the house for $1 million in 2009, and then undertook a mondo kitchen remodel.
The 3-bedroom, 3-bathroom, 2,200-square-foot home at 4969 Ambrose Ave in Los Angeles is no longer a fixer: Jones added a Carrara marble island and a big stainless steel sink.
The Real 'Scarface' Home Hits the Santa Barbara Market
The 1906 mansion where Al Pacino was featured in a role where he went absolutely nuts with drugs and power is for sale in the oceanside town of Santa Barbara. The California coastal manse's list price is a Hollywood-esque real $35 million.
The Mediterranean estate is a stunner, and not only because of the immortal scene in 'Scarface' where Pacino hoists his machine gun and shouts: "Say hello to my little friend!"
Despite its film history past, the 4-bedroom, 9-bathroom Roman palace-like home was designed by architect Bertram Goodhue. Its name, "El Fureidis," means "Tropical Paradise," according to the listing. The grand property includes a 10-acre lot and a unique pool complete with water fountains.
According to records, the 'Scarface' mansion last sold for just $6.23 million in 2009, and in 2012 was listed for rent for $30,000 a month.
By Laura Vecsey
Changes for Nicole Richie
Nicole Richie and her musician husband Joel Madden have listed the Spanish colonial owned by Madden since before their wedding in 2010. The couple's restored 1930s home in Glendale, Calif., is listed for $1.875 million.
The 4-bedroom, 4-bath is almost 5,000 square feet and is replete with thick crown moldings, beamed ceilings, an arched entryway and a custom-tiled fireplace.
With two kids and busy schedules (he's the front man for pop-punk band Good Charlotte; she's got a show called #CandidlyNicole) the couple is taking some time to make a move.
She's a 'Belieber': Selena Gomez Thinks Her Home Will Fetch $3.495M
Selena Gomez, the singer-actress and off-and-on girlfriend of Justin Bieber, has listed her 6,000-plus square-foot home in Tarzana, Calif.
Completely redecorated, Gomez stripped out the plaid and farmhouse décor and instead tricked the place out in a very modern modality. The six-bedroom, eight-bath gated home sits on a full acre, with lots of outdoor amenities, including a pool, full basketball court, Bocce Ball court, pergola and even an orchard.
Mortgage rates for 30-year fixed mortgages fell this week, with the current rate borrowers were quoted on Zillow Mortgage Marketplace at 4.05 percent, down from 4.10 percent at this same time last week.
The 30-year fixed mortgage rate declined early last week to 4.03 percent, where rates hovered for the majority of the week before rising slightly to the current rate on Monday.
'Rates dropped last week, and briefly dipped below 4 percent for the first time since October, as expectations rose that the European Central Bank will ease monetary policy to stimulate growth,' said Erin Lantz, vice president of mortgages at Zillow. 'With little domestic news scheduled for release this week, market observers will look abroad for news that could push rates back into the 3 percent range.'
Additionally, the 15-year fixed mortgage rate this morning was 3.06 percent, and for 5/1 ARMs, the rate was 2.77 percent.
By Laura Vecsey
Nothing But Net for This Sweet Penthouse
Marv Albert has hoisted his $16.5 million apartment on the white-hot Manhattan real estate market.
The longtime sports broadcaster has been dubbed the Voice of the Knicks, Nets and the NBA, but the 72-year-old New York native is now looking for a swish of a sale on his penthouse situated right near Lincoln Center and Central Park.
According to records, Albert bought the 3,500-square-foot condo for $2.93 way back in 1996. In addition to a generous indoor floor plan, which includes two master suites, the perk of this place is the expansive, 1,500-square-foot terrace, giving the residence a huge outdoor entertainment space.
It's a long way from Mayberry, Opie!
Ron Howard, the former child star-turned-Academy-Award-winning-director, saw his road to stardom and economic glory lead him, his wife and family to an amazing estate in Armonk, N.Y., about an hour north of New York City and close to tony Greenwich, Conn.
But with the kids grown, and now 60 years old, Howard says it's time to sell the family spread. The man known as Opie (The Andy Griffith Show) and Richie Cunningham (Happy Days) has listed the home at a staggering $27.5 million.
Howard and his wife, Cheryl, raised their family on this lakefront, country estate set on Converse Lake. The home has 6 bedrooms, 4.5 baths, a two-story library and office, a 14-seat movie theater, a gym, yoga studio and an indoor pool modeled after the pool in Howard's hit movie, 'Cocoon.'
The estate also includes a two-bedroom guest cottage, an indoor tennis and basketball complex, an observatory silo, barns, paddocks, a pond and waterfall, greenhouses and formal gardens.
By Laura Vecsey
Meryl's Choice: Grand Dame of Film Selling in L.A.
Easy come, easy go for Meryl Streep. The Academy Award winner has listed the sleek Los Angeles modern home she bought last February. The plot twist? At a $6.75 million list price, Streep is seeking $2.25 million more than she paid for the 4-bedroom, 4-bathroom, 3,500-square-foot place last year. It comes with all the same furnishings Streep acquired with the property in Feb. 2013. There's only one direction from the most decorated American actress: No open houses.
Eat, Pray, Sell
Author Elizabeth Gilbert, whose 'Eat, Pray, Love' memoir was a bestseller and hit movie, is selling her 1869 Italianate Victorian in Frenchtown, N.J.
Luckily, Gilbert's writing skills have come in handy: She has penned her own listing description and is selling the place For Sale By Owner. The 4-bedroom, 3-bath residence is on the market for $999,000, and features a wine cellar, 1,400-square-foot library and gardens galore.
Reggie Bush Rushing for a Sale
Now that he's in Detroit playing for the Lions, NFL running back Reggie Bush is making a big push to sell his Hollywood Hills home. The list price is $6 million for the modern abode that features a penthouse master suite, roof deck and pool.
The former University of Southern California star, who brought on a monstrous scandal at his alma mater, has had his place at 1501 Vistaview Terrace redecorated in order to attract a buyer.
By Laura Vecsey
A Memorable 'Homer' For Yankees' Great Yogi Berra
With the passing of his beloved wife, Carmen, this past March, Baseball Hall of Fame catcher Yogi Berra has decided to sell the Montclair, N.J., home the happy couple shared and made the center of their large family's world for 40 years.
And if there's any doubt that the home belongs to Yogi, the $888,000 list price says it all for the Yankee legend who wore jersey No. 8.
Their home at 19 Highland Ave in Montclair is a traditional colonial that boasts a three-story spiral staircase that caught Carmen's eye back in 1974 when they purchased the home.
Like the MLB legend, the 1902 home is full of surprises. There's a double-sided wood-burning fireplace, beautiful wood paneling, a tiny closet-sized darkroom on the third floor, an artist's studio, views of New York City and a little covered porch off to the side.
Carmen Berra died March 7 as the result of a stroke, and the couple had been living in a nearby retirement home. But with Yogi's wife of 65 years now gone, and with his 89th birthday coming on May 12, the family has decided to part ways with the 6-bedroom, 3.25-bathroom home.
Ellen Page Turns a Corner in LA
'Juno' star and activist Ellen Page has listed her Studio City home for $1.05 million. The move comes a month after Page bought a sensational Hollywood Hills mid-century modern for $1.7 million that had been owned and redecorated by tennis champion Venus Williams.
Page, 27, bought the 1,499-square-foot, 2-bedroom, 1.5-bath home at 11283 Canton Dr. for $885,000 in 2011. The Cape Cod has been updated with lots of windows, beamed ceilings and a pool.
Mortgage rates for 30-year fixed mortgages fell this week, with the current rate borrowers were quoted on Zillow Mortgage Marketplace at 4.16 percent, down from 4.19 percent at this same time last week.
The 30-year fixed mortgage rate peaked at 4.22 percent last Tuesday before plummeting Wednesday afternoon to 4.14 percent, where rates continued to hover for the remainder of the week.
'Last week, rates dipped to the lowest level in seven weeks as weaker-than-expected home sales and continued concerns over geo-political stability in Ukraine kept downward pressure on rates,' said Erin Lantz, vice president of mortgages at Zillow. 'This week, we expect more volatility as both the mid-week Federal Open Market Committee announcement and Friday's jobs report have the potential to move markets.'
Additionally, the 15-year fixed mortgage rate this morning was 3.15 percent, and for 5/1 ARMs, the rate was 2.81 percent.
Mortgage rates for 30-year fixed mortgages rose this week, with the current rate borrowers were quoted on Zillow Mortgage Marketplace at 4.19 percent, up from 4.14 percent at this same time last week.
The 30-year fixed mortgage rate steadily increased last week, peaking at 4.26 percent on Monday before dropping to the current rate this morning.
'Last week, rates rose slightly on improving unemployment and manufacturing data,' said Erin Lantz, vice president of mortgages at Zillow. 'This week, fewer significant economic reports are slated for release, and markets are more likely to be swayed by the geo-political situation in Ukraine, which could affect rates.'
Additionally, the 15-year fixed mortgage rate this morning was 3.18 percent, and for 5/1 ARMs, the rate was 2.78 percent.
Mortgage rates for 30-year fixed mortgages fell over the past week, with the current rate borrowers were quoted on Zillow Mortgage Marketplace at 4.14 percent, down from 4.20 percent at this same time last week.
The 30-year fixed mortgage rate plummeted on Wednesday from 4.24 percent to 4.12 percent, where rates have continued to hover into this week.
'Last week, rates dropped to their lowest levels in six weeks as investors shifted out of stocks and into safer assets, like U.S. Treasuries and mortgage-backed securities,' said Erin Lantz, vice president of mortgages at Zillow. 'This week, there is a full slate of economic reports scheduled for release, with the potential to nudge rates up.'
Additionally, the 15-year fixed mortgage rate this morning was 3.15 percent, and for 5/1 ARMs, the rate was 2.80 percent.
Mortgage rates for 30-year fixed mortgages fell last week, with the current rate borrowers were quoted on Zillow Mortgage Marketplace at 4.20 percent, down from 4.25 percent at this same time last week.
The 30-year fixed mortgage rate peaked on Wednesday at 4.28 percent before falling to 4.20 percent over the weekend.
'Last week mortgage rates dipped after Friday's job report which, while fairly strong, failed to meet the market's expectations,' said Erin Lantz, vice president of mortgages at Zillow. 'This week, we expect rates to remain about where they are now, and aren't anticipating any market-moving surprises with the release of the FOMC's (Federal Open Market Committee) minutes from the March meeting.'
Additionally, the 15-year fixed mortgage rate this morning was 3.17 percent and for 5/1 ARMs, the rate was 2.86 percent.
Mortgage rates for 30-year fixed mortgages fell last week, with the current rate borrowers were quoted on Zillow Mortgage Marketplace at 4.25 percent, down from 4.27 percent at this same time last week.
The 30-year fixed mortgage rate peaked on Wednesday at 4.29 percent before falling to 4.20 percent, where rates hovered for the remainder of the week.
'Rates dropped last week, erasing most of the run-up triggered previously by the Fed's surprisingly aggressive guidance on plans to increase the Federal Funds Rate,' said Erin Lantz, vice president of mortgages at Zillow. 'We expect rates to remain fairly steady this week, not making any significant movements until after Friday's jobs report.'
Additionally, the 15-year fixed mortgage rate this morning was 3.22 percent and for 5/1 ARMs, the rate was 2.77 percent.
By Nora Tooher
Wilkes-Barre isn't the least Bible-minded city in the country - just one of them.
Two new studies - one from BibleGateway, an online Bible portal, and one from the American Bible Society - both place Wilkes-Barre's Bible-mindedness in the bottom fourth among 100 U.S. cities. ABS ranked Wilkes-Barre 84th, nine points higher the No. 93 it received from BibleGateway.
In the BibleGateway survey, Atlanta was named the most Bible-minded, followed by Dallas; Washington, D.C.; Charlotte, N.C.; Nashville, Tenn.; Raleigh, N.C.; Waco, Texas; Chattanooga, Tenn.; San Antonio and Houston.
The least Bible-minded cities, according to BibleGateway, were Salt Lake City; Burlington, Vt.; Providence, R.I.; Albany and Buffalo, both in New York; Portland, Maine; and Las Vegas. Hartford, Conn., was No. 90; Green Bay, Wis., was 91 and Syracuse, N.Y., was 92.
Critics of BibleGateway's findings noted that its rankings were based on the number of relative page views per household on its website, prompting criticism from LDS Church leaders in Salt Lake City about its methodology. Mormons search the Bible using an app from the LDS Church.
Salt Lake City fared slightly better in the ABS survey, in which it was ranked 87th.
East Coast cities rated low for Bible-mindedness in both surveys. New York City was ranked 74th by BibleGateway and 89th by ABS. Boston was 82nd (BibleGateway) and 98th (ABS).
Besides Boston, the least Bible-minded ciites, according to ABS, are Providence, R.I.; Albany, N.Y.; San Francisco; Cedar Rapids, Iowa; Buffalo, N.Y.; Hartford, Conn.; Phoenix; Burlington, Vt.; and Portland, Maine.
ABS chose Chattanooga as America's most Bible-minded city, followed by Birmingham, Ala.; Roanoke, Va.; Springfield, Mo.; Shreveport, La.; Charlotte; Greenville, S.C.; Little Rock, Ark.; Jackson, Miss. and Knoxville, Tenn.
The ABS study found that an inverse relationship exists between population size and Bible friendliness. Of the top 25 Bible-minded markets, only three have a population of greater than 1 million households: Charlotte, Nashville and Dallas.
By Nora Tooher
Scranton is ranked ninth among the nation's 100 largest commuting zones in terms of the odds it offers low-income children for upward income mobility.
Children in the Scranton commuting area, including Wilkes-Barre, from families in the bottom fifth of national income have a 10.7 percent chance of moving to the top fifth, according to a recent study from Harvard University.
San Jose, Calif., offers the best odds, at 12.9 percent, followed by Toms River, N.J., Bakersfield, Calif., and San Francisco, all 12.2 percent; Santa Barbara, Calif., 11.3 percent; Washington, D.C., 11 percent; Seattle, 10.9 percent and Salt Lake City, 10.8 percent. New York, 10.5 percent, rounded out the top 10.
In addition to Scranton, several other Pennsylvania cities also offer good odds of economic success. Reading, 9.6 percent, was 18th and Pittsburgh was 20th, at 9.5 percent.
Allentown, at 8.3 percent, was ranked 33rd. The Harrisburg commuting area, including York Township, a suburb in fast-growing York County, was ranked 40th, with 7.9 percent odds. Erie, 7.5 percent, was 46th. The Philadelphia commuting area was 49th, with 7.4 percent odds of upward income mobility.
Memphis, Tenn., was ranked last among the 100 largest commuting areas, offering only a 2.8 percent chance for low-income children to move to the top income level.
Other commuting areas with tough odds were Columbia, S.C., 3.7 percent; Fayetteville, N.C., 3.8 percent; Charlotte, N.C., 4.4 percent; Milwaukee and Atlanta, both 4.5 percent; Greenville, S.C., and Greensboro, N.C., both 4.7 percent and Dayton and Columbus, Ohio, both 4.9 percent.
The study found that upward income mobility varies substantially within the United States.
Areas with greater mobility tend to be less segregated, have less income inequality, better schools, greater social capital and more stable families.
The researchers also concluded that intergenerational mobility is significantly lower in the United States than in most other developed countries, especially in some parts of the United States, such as the Southeast and cities in the Rust Belt.
Mortgage rates for 30-year fixed mortgages rose last week, with the current rate borrowers were quoted on Zillow Mortgage Marketplace at 4.27 percent, up from 4.19 percent at this same time last week.
The 30-year fixed mortgage rate surged early last week, peaking at 4.33 percent on Thursday before dropping down near 4.28 percent, where rates hovered for the remainder of the week.
'Last week, rates surged after the Federal Reserve suggested it might increase the Federal Funds Rate sooner and more significantly than expected, surprising many market observers who look to this rate for guidance on where mortgage rates are headed,' said Erin Lantz, vice president of mortgages at Zillow. 'This week, we expect rates will inch up further on the momentum of last week's direction from the Fed and expectations of positive news from economic data scheduled for release.'
Additionally, the 15-year fixed mortgage rate this morning was 3.22 percent and for 5/1 ARMs, the rate was 2.87 percent.
Mortgage rates for 30-year fixed mortgages rose this week, with the current rate borrowers were quoted on Zillow Mortgage Marketplace at 4.21 percent, up from 4.11 percent at this same time last week.
The 30-year fixed mortgage rate steadily rose last week, peaking at 4.27 percent on Monday before dropping slightly to today's rate.
'Rates rose on Monday to levels not seen since mid-January, as the situation in Ukraine appeared to improve and Friday's jobs report beat expectations,' said Erin Lantz, director of mortgages at Zillow. 'This week, we expect rates to remain fairly steady, unless the economic reports being released in the latter half of the week are strong enough to accelerate the gradual upward momentum we saw following last week's jobs report.'
Additionally, the 15-year fixed mortgage rate this morning was 3.15 percent and for 5/1 ARMs, the rate was 2.74 percent.
By Nora Tooher
The City of Brotherly Love has one of the highest crime rates in the country.
Philadelphia, located just 143 miles southeast of Wilkes-Barre, ranks fifth on a new list of large cities with high crime rates.
The 2014 city crime rankings by Washington-D.C.-based CQ Press were based on six crime categories - murder, rape, robbery, aggravated assault, burglary and motor vehicle theft - reported to the FBI. All metro areas and cities with populations of 75,000 or more that reported crime data in those categories to the FBI were included.
Among metros of all sizes, the Scranton-Wilkes Barre metro area had the 75th lowest crime rate.
Of the nation's largest cities, Detroit had the highest crime rate, followed by Baltimore; Memphis, Tenn., and Milwaukee. Indianapolis was sixth, followed by Oklahoma City; Washington, D.C.; Houston and Dallas.
El Paso, Texas, topped the list of big cities with the lowest crime rates, followed by New York City; Austin, Texas; San Diego; Los Angeles; Charlotte, N.C.; Portland, Ore.; San Jose, Calif.; Seattle and San Antonio.
Among mid-sized cities with populations of 100,000 to 499,000, Flint, Mich., had the highest crime rate, followed by Oakland, Calif.; St. Louis; Cleveland; Newark, N.J.; Bridgeport, Conn.; Birmingham, Ala.; Jackson, Miss.; New Orleans and Richmond, Calif.
Amherst, N.Y., had the lowest crime rate of mid-sized cities, followed by Irvine, Calif.; Cary, N.C.; Frisco, Texas; Naperville, Ill.; Woodbridge Township, N.J.; Thousand Oaks, Calif.; Murrieta, Ga.; Glendale, Calif.; and Edison Township, N.J.
And if you're looking for a small city with a low crime rate, Fishers, Ind., a suburb of Indianapolis, has the lowest crime rate of cities with populations of 75,000 to 99,999. Camden, N.J., is the nation's small-city crime capital, with the highest crime rate among smaller sized cities.
Several cities, including Chicago, were not included in the study because crime data for all six crime categories was not available. Others left out of the analysis included Columbia, S.C.; Columbus, Ohio; and Honolulu.
By Nora Tooher
You don't have to leave Pennsylvania to find the best housing value in the world.
According to a recent annual Demographia International Housing Affordability Survey, Pittsburgh's real estate market, just a four-hour drive from Wilkes-Barre, is the most affordable in the entire world.
The study by the Illinois-based consulting firm analyzed 85 major worldwide markets with populations of more than 1 million each in Australia, Canada, Hong Kong, Ireland, Japan, New Zealand, Singapore, the United Kingdom and the United States.
Housing affordability was defined as the ability to buy a home for less than about three times an urban household's yearly income. The rankings were determined by median house price divided by median household income.
With a median house price of $116,000 and a median household income of $51,400 as of the third quarter of 2013, Steel City offered the best housing value of any major market in the world.
Detroit followed Pittsburgh, Grand Rapids, Mich., and Rochester, N.Y. A cluster of other U.S. cities ranked among the most affordable markets worldwide, including Atlanta; Buffalo, N.Y.; Cincinnati; Cleveland; Indianapolis; St. Louis and Columbus, Ohio.
Hong Kong was deemed the least affordable market in the world, followed by Vancouver, Canada; San Francisco; Sydney, Australia; San Jose, Calif.; Melbourne, Australia; Auckland, New Zealand; San Diego; Los Angeles and London.
The study also analyzed the U.S. market on its own, and found 84 affordable markets, 100 moderately unaffordable markets, 29 seriously unaffordable markets and 23 severely unaffordable markets.
U.S. markets pegged as 'severely unaffordable' were: Boston; Los Angeles; Miami; San Diego; New York; San Francisco; San Jose, Calif.; and Seattle.
The study warned of indications of a 'substantial worsening housing affordability situation in California,' especially in San Francisco, San Jose, San Diego and Los Angeles.
Ireland had the most affordable markets of the nations studied, followed by the United States, Canada and Japan. The least affordable markets were in Hong Kong, Australia, New Zealand, Singapore and the United Kingdom.
Mortgage rates for 30-year fixed mortgages fell this week, with the current rate borrowers were quoted on Zillow Mortgage Marketplace at 4.11 percent, down from 4.18 percent at this same time last week.
The 30-year fixed mortgage rate declined steadily last week, dropping to as low as 4.09 percent on Monday before rising slightly to today's rate.
'Rates drifted downwards last week as geopolitical concerns emerged from the turmoil in Ukraine,' said Erin Lantz, director of mortgages at Zillow. 'This week, while the jobs report on Friday is typically the dominant market catalyst, we expect rates will remain depressed while the situation in Ukraine remains unsettled.'
Additionally, the 15-year fixed mortgage rate this morning was 3.08 percent and for 5/1 ARMs, the rate was 2.69 percent.
Mortgage rates for 30-year fixed mortgages remained unchanged from last week, with the current rate borrowers were quoted on Zillow Mortgage Marketplace at 4.18 percent, the same rate recorded last Tuesday.
The 30-year fixed mortgage rate remained stable for the week, hovering between 4.17 and 4.22 percent for the majority of the week.
'Rates were steady last week as uncertain economic data left markets with a fuzzy picture of the health of the economy,' said Erin Lantz, director of mortgages at Zillow. 'This week, we expect the uncertainty to continue, leaving rates fairly flat.'
Additionally, the 15-year fixed mortgage rate this morning was 3.17 percent and for 5/1 ARMs, the rate was 2.75 percent.
Mortgage rates for 30-year fixed mortgages rose again this week, with the current rate borrowers were quoted on Zillow Mortgage Marketplace at 4.18 percent, up from 4.14 percent at this same time last week.
The 30-year fixed mortgage rate hovered between 4.17 and 4.21 percent for the majority of the week, spiking to 4.27 percent on Wednesday before dropping back down to 4.18 percent on Thursday.
'Last week, rates rose briefly when comments by Janet Yellen, the new Federal Reserve Chair, ended speculation that the Fed might delay the winding down of its stimulus program due to recent weak economic data,' said Erin Lantz, director of mortgages at Zillow. 'During this holiday-shortened week with limited economic data scheduled for release, we expect rates will continue to follow the gradual upward path of the past two weeks.'
Additionally, the 15-year fixed mortgage rate this morning was 3.14 percent and for 5/1 ARMs, the rate was 2.71 percent.
Mortgage rates for 30-year fixed mortgages rose this week, with the current rate borrowers were quoted on Zillow Mortgage Marketplace 4.14 percent, up from 4.09 percent at this same time last week.
The 30-year fixed mortgage rate rose early last week before leveling off near 4.13 percent on Friday.
'Rates were essentially unchanged last week despite a weaker than expected jobs report,' said Erin Lantz, director of mortgages at Zillow. 'Although this week marks Janet Yellen's first congressional testimony as the new Federal Reserve Chair, we expect rates will remain fairly flat.'
Additionally, the 15-year fixed mortgage rate this morning was 3.13 percent and for 5/1 ARMs, the rate was 2.80 percent.
Mortgage rates for a 30-year fixed mortgage fell this week, with the current rate borrowers were quoted on Zillow Mortgage Marketplace at 4.09 percent, down from 4.18 percent at this same time last week.
The 30-year fixed mortgage rate steadily declined last week, dropping to as low as 4.07 percent on Monday before rising to the current rate this morning.
'Recent weakness in emerging markets helped push rates down last week to 10-week lows as investors turned toward more reliable assets like mortgage-backed securities,' said Erin Lantz, director of mortgages at Zillow. 'If Friday's jobs report is strong enough, it has the potential to pause a downward slide in rates and offset emerging market concerns.'
Additionally, the 15-year fixed mortgage rate this morning was 3.10 percent and for 5/1 ARMs, the rate was 2.72 percent.
Mortgage rates for 30-year fixed mortgages fell this week, with the current rate borrowers were quoted on Zillow Mortgage Marketplace 4.18 percent, down from 4.23 percent at this same time last week.
The 30-year fixed mortgage rate remained stable for the majority of the week, peaking on Wednesday at 4.26 percent before dropping to the current rate over the weekend.
'Last week, rates dipped abruptly after China's lackluster manufacturing report triggered concerns about the health of the global economy,' said Erin Lantz, director of mortgages at Zillow. 'This week, markets will look to Wednesday's Fed announcement about unwinding its stimulus program and Thursday's GDP numbers as indicators of whether the U.S. economy can continue to improve. Mortgage rates could be affected by either or both.'
Additionally, the 15-year fixed mortgage rate this morning was 3.18 percent and for 5/1 ARMs, the rate was 2.80 percent.
By Nora Tooher
Home values in Wilkes-Barre are on the rise, with the latest Zillow Value Home Index up almost 1 percent on a year-to-year basis.
Wilkes-Barre's home value index of $52,200 was up 0.6 percent at the end of August from the same period a year before, and 0.2 higher from the previous month.
The ZHVI is Zillow's median valuation for a specific geographic area, and includes single-family homes, condominiums and cooperatives.
Home values in several nearby communities also increased through the end of August. Wilkes-Barre Township's ZVHI of $60,800 was up 7 percent on a year-to-year basis. And home values in Hanover Township increased a strong 14 percent from the same period a year ago to $79,200.
Communities where home values declined from a year ago included Kingston, down 4.4 percent; Forty Fort, down 5.7 percent; Luzerne, down 0.6 percent and Swoyersville, down 7.1 percent.
Nationwide, home values increased through August to $162,100, a 6.6 percent gain from the year before, and the largest increase since July 2006.
Eighty-five percent of the metros Zillow covers recorded annual home value appreciation in August. And 20 of the 30 largest metro areas covered by Zillow saw annual appreciation of 10 percent or more.
Nationwide, metros with large annual increases in August included Sacramento, Calif., 34.1 percent; Las Vegas, 30.6 percent and Riverside, Calif., 29.7 percent.
But Zillow expects the double-digit home appreciation gains to slow as inventory shortages ease and mortgage rates rise.
Statewide, Pennsylvania's home value index of $144,400 was up 3 percent from the same period last year.
In the Philadelphia metro area, home values increased 2.5 percent on an annual basis to $189,600. Pittsburgh metro home values rose 4.6 percent to $112,900, and the Allentown metro ZVHI increased 0.9 percent to $165,700.
Zillow is forecasting a 5.2 percent increase in U.S. home values through August 2014.
By Nora Tooher
The local economic picture remains gloomy, with the Scranton-Wilkes-Barre metro area, ranked dead last among the nation's 100 largest metro areas in recovering from the recession.
The Brookings Institution's second-quarter Metro Monitor index of economic recovery showed that the local metro area dropped one spot from 99th in the first quarter to 100th at the end of the second quarter.
Employment recovery has been slow, with the Scranton-Wilkes-Barre metro area ranked 97th, with only a 1.4 percent employment gain from its recession low in the fourth quarter of 2009.
Area house prices slipped 1.1 percent from the first quarter of the year to a new low, placing the region 78th for housing price recovery.
Unemployment is down only 0.5 percent from its trough peak in the fourth quarter of 2012.
Output, a total measure of economic activity, is up a healthy 6.3 percent from its low point in the third quarter of 2009, but remained flat from the previous quarter.
The economic recovery picture was mixed in the rest of Pennsylvania, with Philadelphia and Harrisburg also at the bottom of the pack, ranked 97th and 95th overall, respectively.
Allentown, where economic output has increased 9.1 percent from its recession low, was ranked 66th overall and Pittsburgh came in 52nd.
Nationwide, most large metro areas saw output rise during the second quarter, while 15 experienced contractions.
The longer-term pace of recovery ranks strongest in metropolitan areas of Texas, Louisiana, Tennessee, the Carolinas, Michigan and parts of California, the Mountain West and the Pacific Northwest.
Austin, Texas; Portland, Ore.; and San Jose, Calif.; have each posted output growth of more than 20 percent since their respective low points.
Metro areas with the weakest output recovery were clustered in Florida, California, New York, Pennsylvania and Connecticut.
In parts of the country hit hardest by the housing crisis - California, Florida, Michigan and the Mountain West - recoveries have been strong, but there is still substantial ground to be made up, the report's authors said.
In contrast, metro areas of the Northeast, where the recession was relatively weaker, are exhibiting much slower growth today, according to Brookings.
Q. What do you think about home warranty for rentals? Best regards. Azhar, San Diego, Calif.
A. I'm glad to see that you are a rental property owner now! I've been hearing more and more investors that use home warranties, which is quite a turnaround from a few years ago. I'll note how these work and a few issues to consider.
A home warranty costs about $350-$500 per year. Many sellers provide a home warranty to a buyer at the sale in hopes that gives the seller a little extra protection in case an appliance or other item breaks. And some home warranty companies do a decent job servicing their policies, but some don't do a good job. Home warranty companies, unfortunately, are some of the most complained about service providers for unsatisfactory service, but many have good experiences too. You just have to find the good ones!
The main issue to understand is that a home warranty doesn't cover everything that could go wrong. Like any insurance policy, there are exclusions for some issues, plus there are items like pools or air conditioners that cost extra. Most policy buyers don't read the policy and just assume, incorrectly, that everything is covered.
So if you are going to buy a policy, make sure you understand what is covered and what is not covered. Due to the relatively low cost, I don't see any issues with buying a policy for a year and seeing what you experience if you need to make a service call and how good a job the company does on that call. Make sure to fill me in on your experience next year.
Q. We are doing a 1031 exchange and will soon be selling property for about $2,100,000. We want to buy some rentals and thought about Texas, but taxes are insane. So we are considering California. My question to you is do you think buying four to five ready-to-go rental properties is a good idea and where do you think we should be looking, since with the 1031 exchange we have limited time to identify properties. Josh B., North of Los Angeles
A. Make sure to get good legal, accounting and 1031 exchange advice months before you close escrow on what you are selling. Identifying a property within 45 days that you can actually get under contract and buy is very tough. If you are trying to buy five properties, that's even tougher. You need the buyer of your property to work with you and agree to close escrow once you have all the replacement properties under contract and moving close to closing escrow. Otherwise, good luck completing the exchange.
Regarding buying rental properties, rentals are hard work. If you folks are older, you may not want to deal with rentals. Having a management company might help some, but might not help that much. So make sure you want to be landlords. Also, you should buy properties near where you live. If you have to travel long distances to service the property - even if you have a management company - this can be very disrupting to your life and you might find that the properties are more of a pain than they are worth.
Think it through and make sure the money you will save on taxes from the 1031 exchange is best placed in a relatively risky and high-maintenance asset like rental properties. If it doesn't make sense, find a better investment choice - which might not be real estate. Good luck!
Leonard Baron, MBA, is America's Real Estate Professor and is a real estate investment columnist for Zillow. Find more of his answers to property questions at Mint.com. Email your questions to: Leonard@ProfessorBaron.com
Foreign Real Estate
Q. We are Canadians living in Switzerland and are looking for a long term investment, hopefully to keep indefinitely. Have you heard of some of the leaseback opportunities in France? Are there advantages to buying some kind of property in Switzerland? I thought maybe it would be a good investment as there is limited supply and restrictions on foreigners, but I suppose it could work in reverse if you do need to sell. Deborah G., Switzerland
A. Buying good real estate is tough enough without adding in property in a far away land, with different property rights and laws, and significant potential challenges and legal fees to resolve issues if something goes wrong.
I am not saying that you cannot make money on far away real estate. However, real estate seems to work out best for people who are in close contact with their tenants and the properties. This will help you more easily resolve issues when they occur; and they will occur. For this reason I suggest you stay near your home base in your property endeavors.
A leaseback real estate transaction could be a fair deal, but what if the party leasing back fails to pay you, damages the property or terminates the lease? These are all the same issues with normal rental properties, but sometimes people think they don't apply when a fancy name like 'leaseback' is added. Take my word for it, they do!
So if you do a leaseback in Switzerland, you still need to do the same careful and prudent due diligence, analysis, credit and legal checks and financials. Good luck.
Appreciation in Value in Beach Properties
Q. I know you are not a fan of prize properties due to negative cash flows and I fully understand that. However, don't properties near the beach go up more in value than other properties, making their investment returns pretty good due to that added appreciation in value? Mary Sue H., Orange County, Calif.
A. Let's say it was true that beach properties went up more in value over other properties. Could they just continue to go up indefinitely until those prize properties were tens of millions of dollars while other properties stagnated and values just increased at the rate of inflation? Probably not. It just wouldn't be sustainable over time. At some point people would start avoiding the expensive properties while other people would chase the undervalued non-beach properties. And then prices would ease on the expensive ones and rise on the non-beach ones to an equilibrium of sorts.
Now, depending on where you look on the historical property price changes chart, sometimes beach properties did appreciate more. But sometimes non-beach properties would appreciate more. It's all about how you slice the data.
Regardless, no one can predict the future on pricing, and even if you believe beach properties appreciated more in the past, that doesn't mean they will in the future.
On the other hand, cash flows in the short term are pretty predictable. On a beach property you buy for $800,000, you'll probably be negative on rental income minus expenses of $30,000 to $40,000 per year. Over 10 years, your property may appreciate, but you will have contributed another $300,000 in cash to cover the negative cash flows. And that's just no way to invest.
Buy cash flow positive properties.
So, you are right. I don't like negative cash flow prize properties. Buy the moderately priced boring ones that pay the bills and really add to your wealth!
Leonard Baron, MBA, is America's Real Estate Professor and is a real estate investment columnist for Zillow. Find more of his answers to property questions at Mint.com. Email your questions to: Leonard@ProfessorBaron.com
Buying Ski Chalet in Switzerland
Q. I have recently moved to Lausanne, Switzerland, and am interested in buying a ski chalet as a rental property and as an investment. Do you have any advice in this area? We are close to some of the best skiing and hiking in the world and feel there is some opportunity here. Thank you. Best regards, Deborah G., Switzerland
A. There are several issues I would caution you to consider.
1. First and foremost, will it be a good investment? This sounds like a prize property to me. And the problem with prize properties is that they generally have negative cash flows. Buying an investment property with negative cash flows is not a good idea in my opinion. Have you thought about whether or not you might do better with less hassle keeping your money in well-diversified financial assets?
To help determine if it will be a good investment, have you penciled out the rents and expenses on the property with conservatively estimated numbers? Will you be positive and earn a fair rate of return on the cash equity you invest?
This also sounds like it will be a short-term or vacation rental type of property. And unfortunately, those are some of the worst real estate investments. Management fees are very high because it is a ton of work. If you do manage it yourself, you'll soon learn that it's not much fun having to attend to guests once per week. Expenses you cover like utilities, insurance and furniture and fixtures are also very high and every issue is an emergency because your guests are only there a few days. The net effect is negative cash flows!
The better wealth-improving real estate assets are the nice, boring, moderately priced and cash-flow positive rental properties. And they're almost never in fancy areas.
2. Will you own the chalet at least 5 years? In general, thanks to exorbitant transaction costs on the sale of real estate, the breakeven timeframe to make your first dime of profit is generally 5 years. If you are not 100 percent positive you will own it for that long - and 10 years is a better bet - you're probably better off keeping your money out of real estate from a financial perspective.
3. Currency risk is the last issue. If you plan to move back to the United States (I'm assuming you are from the United States), you could lose all the money you make, if any, based on changes in currency. Of course you could double your money too, but don't count on that! Speak to a financial advisor about this issue.
I hope this frank and hopefully straightforward guidance will be of assistance to you.
House With Cement Slab Foundation
Q. My wife and I are looking at a house that is 35 years old and built on a poured slab concrete foundation. Most of the slab is under carpets and laminate flooring. Some areas that are just concrete have small cracks in them. I'm concerned because of the potential for costly repairs due to this issue. What do buyers normally do regarding this issue? Albert O., Gardena, Calif.
A. Most people don't do anything. But that isn't a very prudent way to buy real estate! You should consult with a local concrete foundation repair company and have them do an inspection of the property. Soil conditions, lot slope, water run-off and other issues can impact the cracking of a floor slab.
Some cracking is normal and not a big issue. On a townhome I purchased years ago that had small cracks in the slab, I asked my home inspector how old he thought the cracks were. He joked that that cracks started to form 40 years ago when the concrete truck left the plant on its way to deliver the wet concrete poured into my slab! And he wasn't joking.
All concrete forms cracks. The severity of the crack, the age of the crack (so how many years from when it was poured) and the likelihood of it expanding are what you need to know.
And a competent, local foundation slab consultant is the one to answer your questions. Good luck!
Leonard Baron, MBA, is America's Real Estate Professor and is a real estate investment columnist for Zillow. Find more of his answers to property questions at Mint.com. Email your questions to: Leonard@ProfessorBaron.com
Standard Tenant Rent to Income Percentage
Q. What is the percent of income plus debt that is customarily allotted by a tenant for rent and what percent should we as landlords accept to better ensure our tenants can pay the rent? Also, what is the best way to verify a prospective tenant's income? Tim C., Oceanside, Calif.
A. Renters are often going to be up to 50 percent rent plus debt to income - sometimes more! Most are going to be spending all of their monthly income on rent, debts, utilities and food and will have very little to put into savings. If their rent to income levels were lower, they'd probably be buying a personal residence instead of renting.
So when you think through their overall debt level and what works for you to accept, you need to look at their entire income and payments, consider how long they've been at their job, how secure is their job, what their prior landlord has to say about their payment history and if they have any past accounts in collections. You must look at everything to help you form an opinion on their ability to pay rent.
A longer-term job and good rental history shows an ability and willingness to pay their rent. However, there are no easy answers on what credit factors you should accept for a tenant. No tenants have a perfect credit, income, job or rental history, so keep that in mind.
For income verification, ask for paystubs and call and confirm their employment. Good luck.
Condo Purchase Noise Nuisance
Q. I recently bought a condo in a high rise in Fort Lauderdale. Shortly after moving in, I noticed a constant annoying buzzing in every room except the master bedroom. There is a transformer room across the hall from my unit which is thought to be the reason for this problem. The condo board does not seem concerned about this as my unit is the only one affected by the problem. Is the board responsible for remedying this problem since the transformer is a common element of the building? The transformer is owned by Florida Power and Light, and I am told the building would be responsible for replacing the transformer. I fear that this buzzing problem will lessen the value of my unit. Ken L., Ft. Lauderdale, Fla.
A. I am sorry to hear about this issue. And unfortunately there may not be an easy answer for your situation. You're going to need to talk to an attorney about specifics in your situation. But here are a few items to consider.
Is the noise a material issue to the sale of the property? Obviously you believe it is, but how loud is the noise emanating from that room? Would a typical person find it annoying? Or maybe are you a person very sensitive to noise, like me. The level of the noise might be an important issue. Anyone can claim noise is an issue, but the legal question would probably revolve around whether or not the noise would be disturbing to a reasonable person of normal sensibilities.
If it is a material issue, and the prior owner knew about the noise, he or she probably should have disclosed it to you in the purchase. If they didn't, you might have a case against them. If it was a bank seller who never occupied the property, the bank probably did not know and obviously the bank staff couldn't disclose it if they didn't know. The condo HOA board is probably not legally responsible to disclose anything like this about one of their units even if they knew, which they probably do not. Talk to an attorney regarding past case law on this issue.
You should first try to work diplomatically with the condo board of directors. But you need to first do the hard work yourself to find some possible solutions. If you do that, maybe they'll pay for it, or at least maybe might chip in some money to solve it. Most likely they will assist, as long as you're helpful and reasonable.
I'd work with the utility company first to find out about noise reduction strategies they've certainly used before in other similar situations. Hopefully there is a good solution. Noise proofing might do the trick, but it might not. So figure out if there is an answer to the issue and the cost, and propose it to the BOD. Alert them that you want to be a happy homeowner and this could happen to anyone, including one of them, so hopefully they'll be sympathetic and financially helpful. They have the power of the purse.
If you bought it from a party who didn't know about the noise, and there isn't a noise proofing solution, you may unfortunately be out of luck and it probably will diminish the value. Unfortunately, if you sold it, you would need to disclose it to the next buyer and obviously that would be an issue.
Hopefully you can find a solution and work out a financing plan to solve it. Good luck.
Evicting a Tenant
Q. I'm a rental property owner and have a tenant that keeps paying late and I'm getting a little frustrated and tired of it. I can terminate their lease, but I'm guessing if I do that I may have to evict them. What's the typical process and cost? Leo T., San Bernardino, Calif.
A. Sorry to hear about this. I'll throw some thoughts your way first.
One thing I'd like to know is other than paying late, are they good tenants, do they take care of your property, not annoy the neighbors? If yes, I'd give it another shot at trying to get them to pay on time. Have you talked to them about why they are late? Maybe they don't get paid until the 8th of the month and you could adjust their rent due date if you felt that is appropriate.
If they are not good tenants for many reasons, maybe it's time to part ways. Review the lease and make sure you stay within the terms of the lease and local laws on terminating the lease. Also, it's always best to try to get them out on a good relationship basis rather than letting things deteriorate. Maybe you can work out some deal that works for everyone.
If you think you're going to have to evict, and you believe they'll fight it, it's going to take 3-4 months and undoubtedly cost you $1,000-$2,000 in legal fees, plus lost rent which you'll never get back from them, plus any property damage they could do. But talk to an attorney in your area about the costs. That's a lot of money in addition to the stress and uncertainty you'll experience with the eviction process and timeframe.
So, if you give them notice of ending the lease, and you think it's going to be a brawl, you could always offer them some money to leave the house in a certain period of time and in good condition (cash for keys). Don't give them the money until they are out of the property and make sure they agree to give you easy access to show the house to other prospective tenants during the period when they are still there.
Doing 'cash for keys' may make you mad, since it's your property and they should follow the lease, but it's still probably the best way to get them out with the least hassle and the least cost to you. Good luck!
Mortgage Financing Getting More Expensive
Q. I hear that in 2014 it is going to be tougher to get mortgage financing, which will definitely drive interest rates up. What is your forecast? Mel R., Rye, N.Y.
A. Predicting the future is tough, especially in an economy that is still not operating on all four engines with a changing regulatory and political environment.
There are new rules on mortgage financing coming due with the Dodd-Frank Consumer Protection Act. This will reduce the number of people able to qualify for mortgages and reduce demand. Also, the Federal Reserve will most likely ease up on purchasing bonds which has artificially kept mortgage interest rates low for a few years. To add to that, mortgage loan guarantee fees have been going up at the Federal Housing Administration and are proposed to go up on Fannie and Freddie loans, although the new director of the group that regulates those loans may delay the higher fees.
Some of these issues will drop demand for financing, which should lower interest rates. Some of these will increase costs and fees on financing, which will effectively increase your borrowing costs.
In addition, if the economy starts to improve, investors in mortgage and other bonds will probably rotate their invested capital out of bonds and back into stock to earn higher yields. This will drive down prices of bonds, as demand for that secure asset lessens and drive up mortgage interest rates. We also have world instability, issues in China, Iran and Russia, the U.S. debt issue, and of course the demand and cost of oil. The United States could also fall back towards a recession, although that looks unlikely at this point, and let's hope for all of us it keeps improving!
All of these above items may impact mortgage interest rates one way or another in 2014. But, no one knows for sure which way the interest rate ball will roll.
Right now mortgage rates are still at historic lows. That's the best information we have. Good luck!.
Cancelling Private Mortgage Insurance
Q. I bought a property 6 years ago and have private mortgage insurance. It's actually up in value and I'd like to get rid of this expense, but my mortgage lender has refused. Help! Allan M., Raleigh, N.C.
A. It used to be a huge fight with lenders to get them to cancel PMI. It still is tough most of the time. The Homeowners Protection Act of 1998 gave homeowners a lot more rights to help them cancel PMI. That being said, there are still many reasons a lender can refuse and make it difficult.
The first issue is that your property's loan-to-value generally must be below 78-80 percent. And that could include any second mortgage or HELOC. You must also be up to date on your mortgage. The lender may also require you to have an appraisal done for about $400 and if it doesn't appraise you're out that money.
If your lender has refused, get them to give you a written explanation and review that against the Protection Act information. Search online for more details.
If you think they should allow you to cancel, and they won't, you might want to contact the bank's legal department as a start and give them a written letter as to why you believe they should let you cancel PMI. Hopefully that will solve the issue. If it doesn't, and you're not happy with their response because you feel your property is qualified, you may have to hire an attorney to pursue your case. Good luck.
Q. Many investors I know in the city are considering buying properties to rent as short-term rentals. I was wondering if you know if these can be good investments? Marge I., Washington, D.C.
A. Any property can be a good investment, but it's unlikely a short-term rental is going to be one. There are several issues.
One issue is prices too high and net rents too low. In order to generate high rental income, you typically need to have a really good location. And with a really good location, comes a really high price and big mortgage.
So do the rents, less expenses, cover the mortgage and leave some cash left over is what you'd want to know. And the answer is probably not. Expenses on short-term rentals are like hotel expenses where 65-85 percent of revenue goes to operating expenses - a normal rental property's expenses are typically half that amount. That leaves only 20-40 percent of the rental revenue to cover the mortgage, so you're probably going to be negative on cash flows.
And any property with negative cash flows is probably not a very good investment, but talk to a financial advisor.
In addition to that, they are very management intensive. So management fees are very high 25-30 percent and if you want to self-manage, it's a full time job. And you won't have fun when every issue is an emergency!
Lastly, there are probably many new city rules and regulations coming on short-term rentals. Some HOAs ban them and some neighbors fight them.
I doubt the above sounds appealing to you. But talk to other investors for their guidance and opinions.
Paying Down a Mortgage Loan
Q. I recently inherited a fair amount of money and I'm considering paying down my home mortgage balance. I'm a little hesitant because the interest rate on the loan is only 3.75 percent and I just paid several thousand dollars a few years ago to get this low loan rate. What is your view? Marjorie F., Miami, Fla.
A. Strictly from a financial standpoint, it would probably be a mistake to pay down your mortgage balance. Your home mortgage interest may be tax deductible, depending on your tax picture, and if it is then your after tax interest rate may be as low as 2.5 percent to 3 percent. You should keep that loan outstanding as long as possible.
Depending on your situation, you should probably hold that money in a more liquid financial investment and earn some interest or dividends that could be at a higher interest rate than your mortgage, still within some pretty low risk assets. Talk to a financial advisor. Holding some cash on hand will help in the future in case you have an emergency, like a job loss or uninsured property or health issues.
The only alternative to this guidance is that if you are getting older and risk averse, it might make sense, especially for peace of mind, to reduce your monthly housing cost by paying down the mortgage.
Overall, it's a personal choice, and hopefully this guidance gives you additional food for thought.
Real Estate Sales Professional Advising Client on HOAs
Q. I've read your articles before about HOAs and all the issues. I'd like to help my clients assess an HOA's condition so they can make better decisions. There are so many things to consider. Which ones are the most important? Marvin M., Upland, Calif.
A. Unfortunately HOAs are filled with landmines and as an agent you need to be very cautious about advising your clients as to any issues with HOAs. You should concentrate on providing them an education on how HOAs work, what documents they can review to assess the community, plus make sure they know that they might need to and should consider hiring an HOA expert, lawyer, CPA or some professional who will be independent and unbiased in reviewing the documents.
Be very careful and make sure they understand the HOAs are very complicated entities and you are not an expert. They must understand that you can guide them in some of the more important issues, but ultimately they need to review all the information, finances and documents and come to their own conclusions and opinions about the community HOA and whether it is smart to buy into that community.
You also may want to talk to your broker. If you belong to a Realtor association, ask their lawyer for more guidance on how you should discuss HOAs with your clients. Good luck.
Buy a Personal Residence or Rental Property First
Q. I am 29 years old and want to own real estate, both a home and rental property. Some people say I should buy the rental property first, so the income can help me qualify for a home. Some people say buy a home first. Do you have any thoughts? Jennifer L., Savannah, Ga.
A. If you want to own rental properties, and since you are young and mobile, the best way to get going is to buy a personal residence home that would make a good rental property, live there a few years, then rent it out when you move into your next home. That's the best way to go, and here's why:
So find a nice rental property that you'll call your home for a couple of years, live there and then move to the next one. Repeat this exercise about 10 times in the next 30 years and you'll be a happy retiree!
Insurance for Fire-Prone Area
Q. I am considering buying a house in southern California in an outer wilderness type area, and I understand that some insurance companies are balking at providing coverage to some properties due to fire risk. Is this correct and what can I do to work around this issue? Martha M., San Bernardino, Calif.
A. There's no way around this issue. And you should really think this through. The reason insurance companies don't like to provide coverage in wilderness areas is because there is a higher risk of loss to them. So if you buy a property in these areas, there is a higher risk of loss to you.
Many insurance carriers are dropping coverage to these areas. Even the ones that still provide coverage may drop it in the future or significantly raise premium prices. Other carriers are just increasing premium prices right now. So that is what you are faced with going forward if you purchase one of these properties.
There is an insurer of last resort in California, the California FAIR Plan Association. So for owners who cannot get insurance elsewhere, this quasi-state agency can help. But you will have to pay for the coverage.
With those facts you can make an informed decision. Good luck.