Wednesday, September 17, 2014

City of Fresno's General Plan Update

CREATING PROSPERITY 
IN 
FRESNO 

invites you to a town hall event to discuss

City of Fresno's 
General Plan Update

Date:    Monday, September 22, 2014 
Time:   5:30 P.M.
Location:  Bullard High School Theater
                     5445 North Palm Avenue 
                     Fresno, CA 93711

For more information contact 
Saulo LondoƱo at 559.440.8364

Saturday, September 13, 2014

Central Valley Real Estate Forecast and Reception

The Fresno Association of REALTORS®
invites you to attend 

CENTRAL VALLEY REAL ESTATE 
FORECAST & RECEPTION 

Friday, September 19, 2014
5:00 pm – 7:30 pm
Fresno Convention Center, 848 M Street 

Featuring Special Guest

Leslie Appleton-Young 
Vice President & Chief Economist
California Association of REALTORS® 
Leslie directs the activities of the 
Association's Member Information Group. 
She oversees the analysis of housing 
market and brokerage industry trends, 
broker relations, and membership 
development activities. She is also closely 
involved in the Association's strategic 
planning efforts and is a well-known 
speaker in California’s real estate 
community.

RSVP by calling FAR at (559) 490-6400 
Please RSVP by Sept. 15

Parking $7

Homeownership Fair

Homeownership Fair


Date:             Saturday, September 20, 2014 
Time:            9:00 AM - 4:00 PM
Location:      Fresno Convention Center 
                        848 M Street Fresno, Ca 93721

Presented by 
Fresno Association of Realtors
California Association of Realtors
Wells Fargo Home Mortgage

For more information click here.

Friday, September 12, 2014

Fresno Bee Article : 2014 Housing Market Symposium

Fresno Bee Article : 2014 Housing Market Symposium
Featuring Keynote: Selma Hepp

To view the Fresno Bee article please click here.

Friday, September 5, 2014

Gazarian Real Estate Center 2014 Housing Market Symposium


The Gazarian Real Estate Center  presents
2014 Housing Market Symposium

  Date:    Friday, October 17, 2014

  Time:   8:30 A.M. - 11:30 A.M.
                                                 *registration begins at 7:30 A.M.

 Location:  Alice Peters Auditorium
                      5245 North Backer Ave 93740 
                      Craig School of Business
                         California State University, Fresno

    Title Sponsor: Rabobank



  Sponsors:   Urban Land Institute - San Francisco
                          Northern California Chapter-Appraisal Institute
                          Fresno Association of REALTORS®
                          Fresno Economic Development Corporation



Keynote speaker:    Selma Hepp, 
                                       Senior Economist, 
                                       California Association                                                             of REALTORS®


Panel Session:        John Bonadelle, CEO, 
                                     Bonadelle Neighborhoods

                                     Selma Hepp, Senior Economist, 
                                     California Association of REALTORS®

                                     Jared Martin, Executive Committee 
                                     Member, Fresno Association 
                                     of REALTORS®

                                      Rob Melfe, Vice President 
                                      Residential Appraisal Manager
                                      Rabobank

                                     John Shore, Executive Director, 
                                     Community Housing Council of Fresno
                                      
                                    

To register, please email Gazarian Center Associate Director Jacqui Curry at jacquelinc@csufresno.edu. 









Saturday, August 30, 2014

High Negative Equity Among Gen-Xers Causing Housing Gridlock

To Recover or Not to Recover.... Creative Solutions is the future of real estate.... read on!



High Negative Equity Among Gen-Xers Causing Housing Gridlock



High Negative Equity Among Gen-Xers Causing Housing Gridlock

According to Zillow's latest Negative Equity Report, high negative equity among Gen-X homeowners is causing gridlock in the U.S. housing market.



Nearly 43 percent of homeowners between 35 and 49 are underwater on their mortgages. In contrast, only 15 percent of millennial homeowners (those between 20 and 34 years old) and 31 percent of baby boomers (50 to 64 years old) are underwater.



This storehouse of negative equity among the two older generations limits millennials from homeownership mainly because of the ripple effect created when underwater homeowners have trouble listing their properties for sale: baby boomers may not be able to find move-up buyers for their homes because Gen-Xers are stuck with troubled mortgages, Zillow reported. In turn, millennials can't move into the more affordable starter homes currently occupied by Gen Xers. In other words, the very types of houses young first-time buyers would be most able to afford are not hitting the market, and millennials are increasingly getting priced out.



Zillow found that among all homes with a mortgage nationwide, 28 percent that are valued within the bottom third of home values were underwater in the second quarter. This compares to about 16 percent of homes in the middle tier and 9 percent in the top tier.



All ages combined, more than a third of homeowners with a mortgage are effectively underwater and unable to sell their homes for enough profit to comfortably, meet expenses related to selling, and afford a down payment on a new home, the report stated.



Zillow's chief economist, Stan Humphries, said the recession is largely to blame, having most crippled the homes the majority of Gen-X bought.



"On the surface, the housing recession did not overtly impact millennials' housing wealth to the degree it did Generation X and the Baby Boomers," Humphries said. "Most millennials were likely too young to have purchased a home during the bubble years. But as this huge generation begins to consider buying homes, they're entering a market still very much in recovery and far from anyone's definition of normal."



Because so many homes are stuck in negative equity or are effectively underwater, the inventory of homes for sale is severely constrained, Humphries said. This leads to increased competition for homes and the frank reality that many millennials are simply too young and too new to the workforce to have saved up significant money to compete with more established older buyers.



"The reality is, negative equity is part of the new normal," Humphries said. "Finding creative solutions to keep homes affordable, available, and accessible to [millennials] will be critical going forward."

About Author: Scott Morgan

Scott Morgan
Scott Morgan is a multi-award-winning journalist and editor based out of Texas. During his 11 years as a newspaper journalist, he wrote more than 4,000 published pieces. He's been recognized for his work since 2001, and his creative writing continues to win acclaim from readers and fellow writers alike. He is also a creative writing teacher and the author of several books, from short fiction to written works about writing.

Thank you!


Thank you 

Lance-Kashian & Company 
Tracy Kashian and Nick Kazarian

for a great presentation on 
"The Square at Campus Point"


For the article in the Collegian please visit: 
The Collegian

For the article in the Fresno Bee please visit: 

Fresno Bee

Lance-Kashian & Company "The Square at Campus Point" description please visit: 

The Square

Please join us for the next Gazarian Real Estate Speaker Series 9/24/14 featuring Darius Assemi, President of Granville Homes. For more information or to register, email Gazarian Center Associate Director, Jacqui Curry at jacquelinc@csufresno.edu 

Friday, August 29, 2014

Next Gazarian Real Estate Center Speaker Series 9/24/14



The Gazarian Real Estate Center Speaker Series presents

Westlake Master Planned Project
Granville Homes
Darius Assemi, President

Date:             Wednesday, September 24, 2014

Time:             11:30 A.M. - 1:00 P.M.

Location:     PB 192 University Business Center
                         Craig School of Business
                         California State University, Fresno

Series Sponsor:    Central Valley Community Bank

Lunch will be provided and seating is limited. 
To register, please email Gazarian Center Associate Director Jacqui Curry at jacquelinc@csufresno.edu. 

The Square at Campus Pointe - Gazarian Real Estate Center Speaker Series



Collegiate article:

Campus Pointe retail phase the core of creating ‘college-town,’ developer says


For the full article please click here

The Square at Campus Pointe - Fresno Bee Article

Campus Pointe construction moving quickly, main street open to walkers – 

Construction of The Square at Campus Pointe is moving along quickly with the retail center’s main street already open to students walking to class. The shells of five buildings flank the street and tall palm trees tower over the sidewalks. Parking will eventually surround the center.  Fresno Bee article

Monday, August 25, 2014

Number of New SFR Property Listings for Sale in Fresno & Clovis at a 12 Month High

The total number of new SFR home listings for sale in Fresno & Clovis has seen an increase of 8% from July 2013 to July 2014.



If you have any questions on this information or want specific information on the Fresno/Clovis Real Estate housing market, please contact Greg Maroot of Properties at 559-994-0254.


Maroot Properties. herein deemed this information is reliable but not guaranteed; representations are approximate, individual verification recommended. Real property transactions information listed above is limited to Fresno MLS listings and may exclude total number of real property transactions which occurred in the marketplace.

Friday, August 22, 2014

Econometer: The Question Of The Week: What Do Falling Yields Mean For The U.S. Economy?

EconoMonitor : EconoMonitor » The Question Of The Week: What Do Falling Yields Mean For The U.S. Economy?



The benchmark 10-year Treasury yield closed under 2.35% last week, the lowest in more than a year. Oil prices are soft as well these days, with the spot price for West Texas Intermediate slipping into the mid-$90 range for the first time since early February. Some pundits are also pointing to last week’s flat retail sales report for July as a signal for arguing that the US economy is headed for trouble. The New York Post over the weekend “reviewed” the numbers and decided to invoke the “R” word, advancing this gem of empirical analysis to drum up fear on Main Street: “During recessions and weak growth, energy prices do fall.”



The pessimists conveniently ignore industrial production’s better-than-expected gain for last month, but a dark outlook isn’t easily distracted. It may be tempting to assume the worst in some circles, but it’s still premature to claim that the US economy is slumping. Sure, you can torture the data to say anything you want, but the old game of cherry-picking numbers in the short term is as unreliable as ever for analyzing the business cycle. In fact, a broad, diversified set of indicatorstells us that the US economy was growing at a moderate pace through July, and the latest batch of figures doesn’t challenge the trend. Looking at retail spending through a meaningful prism, for instance, suggests a middling performance relative to recent history. The year-over-year change for retail sales is a moderate 3.7% gain through last month–a touch above average based on annual changes over the past year.



The initial macro profile for July is nearly complete and the data still look encouraging, including the all-important growth in payrolls of late. Will August tell us otherwise? Probably not, at least based on the early clues available so far.



The 10-year yield is sliding primarily because demand for safety around the world is on the march again–for reasons closely linked to elevated geopolitical risk beyond American shores. The US dollar is still the world’s reserve currency and so the return of a risk-off environment draws investors to the world’s proxy for “risk-free” bonds.



10yr.18aug2014



Sure, the US economy may ultimately stumble, but there’s no sign of that yet. There’s always a plausible scenario that could wreak havoc. Meantime, the cold, hard reality is that making high-confidence decisions about major turning points for the business cycle takes time and requires more than a handful of discouraging economic releases. Keep in mind that there’s always a weak sector to raise doubts about the overall trend. For the moment, the main slice of wobbly behavior is housing. But even here, there’s little to suggest that residential real estate is in high-risk territory as it relates to the economy overall.



All of this could change, of course, which is why monitoring the business cycle requires constant attention. Europe’s latest macro troubles represent a new risk. So, too, does the new wave of turmoil in the Middle East and the smoldering Ukraine crisis. It’s all raw material if you’re trying to write a dramatic column for the local tabloid. But history suggests in rather strong terms that you’re better off watching a broad set of economic and financial indicators before declaring that recession risk is high. This is one of the few lessons that stands the test of time in macroeconomics.

It’s also true that a robust econometric model for analyzing the business cycle is more or less worthless for columnists. Sure, there’s another recession coming. But it’s pretty clear that it didn’t start in July 2014. August probably won’t be a turning point either, unless we see a horrific reversal of fortunes in the yet-to-be published data for this month. Possible? Yes. Probable? No.



This piece is cross-posted from The Capital Spectator with permission.

- See more at: http://www.economonitor.com/blog/2014/08/the-question-of-the-week-what-do-falling-yields-mean-for-the-u-s-economy/#sthash.Bx9p7bRn.dpuf

Wednesday, August 6, 2014

Fed and FDIC Complete Review of Bank “Living Wills”

To be or Not to Be, such is the question we ask of our 11 Banks says the Federal Government on the topics of Crisis Management and Bank Failure
Resolutions... read on!


Fed and FDIC Complete Review of Bank “Living Wills”



Fed and FDIC Complete Review of Bank “Living Wills”

bank
The Board of Governors of the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) announced Tuesday that they had completed the review of the second round of resolution plans submitted by 11 large banks.



The Dodd-Frank Wall Street Reform and Consumer Protection Act requires that banking organizations with total consolidated assets of $50 billion or more periodically submit resolution plans to the Federal Reserve and the Federal Deposit Insurance Corporation. The plans are commonly referred to as “living wills”.



Each plan must describe the company's strategy orderly resolution in the event of the failure of the company or severe financial distress. The 11 firms in the first wave of filers include Bank of America, Bank of New York Mellon, Barclays, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan Chase, Morgan Stanley, State Street Corp., and UBS.



The agencies noted that the review of the resolution plans highlighted some improvement on from the first submissions in 2012. However multiple common failures still remain that must be addressed in the submissions next year.



These common failures include: “assumptions that the agencies regard as unrealistic or inadequately supported, such as assumptions about the likely behavior of customers, counterparties, investors, central clearing facilities, and regulators.”



Another defect noted was “the failure to make, or even to identify, the kinds of changes in firm structure and practices that would be necessary to enhance the prospects for orderly resolution.”

The letters to each first-wave filer detail the specific shortcomings of each firm's plan and the expectations of the agencies for the 2015 submission. The next installment of plans is due no later than July 1, 2015.



About Author: Derek Templeton

Avatar of Derek Templeton
Derek Templeton is an attorney based in Dallas, Texas. He practices in the areas of real estate, financial services, and general corporate transactional law. His experience includes time as an Attorney Adviser for the U.S. Small Business Administration and as General Counsel for a nonprofit organization in Dallas. A self-avowed "policy junkie," he has a keen interest in the effect that evolving federal policy has on the mortgage, default servicing, and greater housing industries.

Tuesday, July 22, 2014

How are the Top 5% Real Estate Investors Investing? | 2014-06-23 | HousingWire

Here’s how leading real estate investors are different than the other 95% | 2014-06-23 | HousingWire



Where they focus, how they get their money – it’s a different world

House Cash
 
Apologies to F. Scott Fitzgerald, but the big real estate investors are very different from you and me.

A comprehensive new survey by Realeflow shows exactly how different, as it gives an insight into who the big real estate investors are and what tools they use.



Real estate investors have been an outsized player in housing sales through 2013 and 2014, and this gives an idea of where they are getting financing, what their focus is and what tools they use.



“Our data shows that many of those who are at the top of their game have largely walked away from banks, and now rely on private lenders or their own capital,” the Realeflow report says.  “Those outside of ‘The Leaders’ are still working with banks as well as hard money lenders, to augment funds they may not be able to access through private lenders or their own capital.”



The challenge for the 95% will be in breaking the cycle that continues their reliance on banks and hard money lenders, the report states.



The report, which can be read here, divides investors into two groups, the “Leaders” (the top 5%) and the “Pack,” and while Realeflow does have a product to offer investors that’s supposed to help them break out of the pack, the survey results are enlightening.



A Marathon Not a Sprint



48% of The Leaders fall into the 31-50 age range.  Furthermore, 44% fall into the 50+ category. A whopping 93% of everyone else is 31 and over.



“These numbers show us that real estate investing is much more a marathon than a sprint. Those looking for a get rich quick scheme, may do better trying to design the next Flappy Bird app,”



Realeflow’s report says. “While success can be achieved rapidly (months) true long term wealth often takes years to create.”



The Action is in Rehab

Rehabbing clocks is at the top spot for both The Leaders (53%) and The Pack (39%). Rehabbing offers, perhaps, the best opportunity to add value to a property and, therefore, net the most profit.



Click below to see the graph.



“Rehabbing is, however, the most capital intensive and risky, which is why so many investors begin (and often stay) with wholesaling, which is far less demanding on funds,” they conclude.



Stay on Leads



Real estate agents and word-of-mouth referrals still occupy the number one and two positions, remaining in line with investor tactics for generating seller leads. For buyer leads, 3rd party websites have pushed out direct mail to assume third place.



In general, buyer lead generation presents far less of a challenge to investors than seller lead generation in this current market.



Based on survey responses, generating buyer leads didn’t seem to represent a large constraint in their business. Investors are, however, looking for newer, cheaper ways to market their properties, including social media.



Auction or not to Auction?

Auction sites tend to be a newer marketing channel for finding properties and potentially selling inventory. It appears that both groups are going to consider them as a viable alternative in the future, while far more of The Leaders are having success right now.



Click below to see the graph.





“We predict that auction sites will become more popular as property inventory continues to increase on these sites. Auction sites will likely see a jump in usage amongst those investors who are most limited on time or who are looking for a consistent source of readily available deals,” they conclude.



Source of Investment Capital

Of all the questions posed on the survey, the responses to this funding question most clearly delineated the differences between The Leaders and The Pack. Most striking is that The Leaders almost never use banks to finance their investments, preferring to utilize their own capital or funds from private lenders.



“The move away from banks and hard money lenders enables those investors to move much more quickly on deals, using less expensive money. The challenge to the rest is how to make that same transition. The answer is once again, marketing,” they conclude. “Investors need to develop their brand in order to build confidence in private lenders. Investors also need to target private lenders in much the same way they would sellers, using regular communication and a consistent message that creates trust and mitigates potential risks in the eye of the lender.”

Recent Articles by Trey Garrison

Monday, July 21, 2014

Employment Opportunity

Northern California Community Loan Fund is embarking on a comprehensive search to find the right individual for their Director of Development and Communications, a key senior management position.

They are looking for an experienced, dynamic fundraising professional to create and coordinate fund development, marketing and communications strategies for NCCLF, a community development financial institution dedicated to alleviating poverty and revitalizing the economic base of low-income communities in Northern and Central California.  

To learn more about the position, please visit their posting by clicking here.


Northern California Community Loan Fund
870 Market St., Suite 677 / San Francisco, CA 94102

Saturday, July 19, 2014

Median Price of SFR Home Listings Sold in Fresno & Clovis at a 12 Month High

The median price of SFR home listings sold in Fresno & Clovis increased by 15% from June 2013 to June 2014.   



If you have any questions on his information or want specific information on the Fresno/Clovis Real Estate housing market, please contact Greg Maroot at 559-994-0254.


Maroot Properties herein deemed this information is reliable but not guaranteed; representations are approximate, individual verification recommended. Real property transactions information listed above is limited to Fresno MLS listings and may exclude total number of real property transactions which occurred in the marketplace

Friday, July 18, 2014



 Employment Opportunities
Please send cover letter and resume to tgastelum@fresnoedc.com
NEW TITLE:      Corporate Locations Coordinator
GRADE:              Non-exempt
SALARY:            $45,000 annually plus benefits
SUPERVISOR:   Director of Corporate Locations

PURPOSE OF POSITION: Under the direction of the Director of Corporate Locations, the Corporate Locations Coordinator is responsible for optimizing the economic development activity in the County of Fresno through marketing the region and by providing technical and administrative support to the EDC's Corporate Locations Department. 

For the detailed job description, please click here.


The Economic Development Corporation serving Fresno County is a nonprofit organization established to market Fresno County as the premier location for business prosperity. We strive to not only facilitate site selection for new business within Fresno County, but we also assist in the retention and expansion of businesses that are already located in the area.  

Economic Development Corporation serving
Fresno County
906 N Street
Fresno, California 93721

For more information on the Fresno EDC, visit www.fresnoedc.com

                          

Tuesday, July 1, 2014

Northern California Chapter of the Appraisal Institute 2014 Annual Fall Conference





Northern California Chapter of  the Appraisal Institute 
Presents 
2014 Annual Fall Conference Real Estate and Appraisal Symposium

Wednesday, September 17, 2014
San Francisco Marriott 55 Fourth Street (at Mission), San Francisco 

Featuring 16 Informative Breakout Sessions

Registration/Continental Breakfast 7:45am 
Conference Hours 8:30am – 5:00pm 
Networking Reception 5:00pm - 6:30pm 

 For more information please follow the link below:
Northern California Appraisal Institute 2014 Annual Fall Conference

Wednesday, June 25, 2014

5 Types of Homes With Deepest Discounts

5 Types of Homes With Deepest Discounts



For home buyers who want to score the biggest discounts on a distressed property, they better be prepared to start the bidding. Distressed properties with the biggest price discounts are those scheduled for public foreclosure auction, and they are typically homes built between 1950 and 1990 that are now vacant, according to RealtyTrac’s May 2014 Residential & Foreclosure Sales Report. Such properties sold for an average discount of 28 percent below non-distressed sales.



RealtyTrac analyzed residential property sales transactions for the year ending in March 2014 to pinpoint the types of distressed properties that sell at the largest discounts, comparing factors like foreclosure status, occupancy status, equity, and the year the home was built. The discount was calculated by comparing the average discount (below market value) or premium (above market value) of 24 different distressed property profiles, and then comparing it to properties not in foreclosure that sold during the same time period.



While scheduled auctions offered some of the largest discounts, RealtyTrac also found that the following distressed properties also tended to carry some of the largest price discounts to buyers:

  • Homes in default with positive equity: 26% discount
  • Homes in default with negative equity that were built in 1950 or before and are now vacant: 26% discount
  • Vacant homes with negative equity that are scheduled for foreclosure auction: 25% discount                 
  • Homes scheduled for foreclosure auction: 25% discount
  • Bank-owned properties that are vacant: 18% discount
Despite the discount on vacant bank-owned properties, RealtyTrac found that repossessed homes overall tended to sell for a 3 percent premium. Those built in 1950 or before sold at a 7 percent premium, according to the analysis.

The largest discounts on distressed properties were found to vary considerably by state. The following states had some of largest discounts on distressed properties, according to the RealtyTrac analysis:

  1. New York
    Vacant properties with negative equity that are scheduled for foreclosure auction: 38% discount
  2. Ohio
    Vacant properties with negative equity that were built between 1950 and 1990: 34% discount
  3. Michigan
    Vacant properties in default: 34% discount
  4. Florida
    Vacant properties with negative equity that were built between 1950 and 1990 and are scheduled for foreclosure auction: 29% discount
  5. California
    Properties with positive equity that are scheduled for foreclosure auction: 17% discount
Source: RealtyTrac

Saturday, June 14, 2014

Number of Home Listings for Sale in Fresno & Clovis Up

The total number of SFR home listings for sale in Fresno & Clovis has seen an increase of 10% from May 2013 to May 2014.



If you have any questions on this information or want specific information on the Fresno/Clovis Real Estate housing market, please contact Greg Maroot of Maroot Properties Inc. at 559-994-0254. 


Maroot Properties herein deemed this information is reliable but not guaranteed; representations are approximate, individual verification recommended. Real property transactions information listed above is limited to Fresno MLS listings and may exclude total number of real property transactions which occurred in the marketplace.

Monday, May 19, 2014

Experts Undecided on Cause of Affordability Concerns

Experts Undecided on Cause of Affordability Concerns



Experts Undecided on Cause of Affordability Concerns

Experts Undecided on Cause of Affordability Concerns
A new survey from Zillow finds real estate and investment experts are divided on the likely culprits behind affordability concerns in the market.  For more local Zillow data, please see http://www.zillow.com/fresno-ca/.



In a survey of 106 economists, real estate experts, and investment and market strategists, Zillow found a slight majority—28 percent—pinned the most blame for declining affordability on stagnant income growth across the country, even as the rest of the economy has moved in a generally positive direction.

At the same time, the number of respondents pointing to "abnormally high rates of home price and rent appreciation" as the main problem was only slightly smaller at 27 percent.



The third most commonly cited answer, following close with 21 percent of responses, was the "abnormally low supply of homes currently available for sale or rent" due to a lack of sellers coming into the market and low rates of new home construction.



Still, given the host of issues hampering the housing market, "one could probably make the case that things could, and maybe should, be a lot worse," said Dr. Stan Humphries, chief economist for Zillow, noting that tight credit also presents a problem of its own.



"We're certainly in a better spot than we were just a couple years ago, but the housing market remains far from anyone's definition of 'normal,'" Humphries said. "It will take years for these issues to either be adequately addressed through policy, or to naturally work themselves out of the market."



While affordability conditions are still generally favorable as a result of historically low mortgage rates, cost is becoming a more serious problem for homebuyers in a number of metros, including some of California's largest markets, Zillow reported in a recent study.



The survey also turned up concerns about price growth inflating a new bubble if it continues at such a high pace. Those who say price spikes are the root behind affordability problems were most likely to express worries of a bubble, with 90 percent saying there is moderate to high risk—if one isn't already inflating.



On average, panelists in the survey forecast nationwide home value appreciation of 4.4 percent through the end of 2014, nearly a point above the historical average of 3.6 percent. Growth next year is expected to fall to 3.8 percent, dropping again in 2016 to 3.4 percent.



Predictions ranged from a low of 3.2 percent this year to a high of 5.8 percent.

"After narrowing over the past year, in this quarter, the spread between the forecasts of the most optimistic and pessimistic groups not only expanded, but widened by a degree we have not seen in the four-year history of this survey," said Terry Loebs, founder of Pulsenomics, which conducts the quarterly survey for Zillow. "Time will tell whether Washington's unfolding plan to expand mortgage credit will have a durable, positive impact on home values, housing confidence, and market expectations."



About Tory Barringer

Tory Barringer
Tory Barringer began his journalism career in early 2011, working as a writer for the University of Texas at Arlington's student newspaper before joining the DS News team in 2012. In addition to contributing to DSNews.com, he is also the online editor for DS News' sister publication, MReport, which focuses on mortgage banking news.

Tuesday, May 13, 2014

FIN 181 Blog Post - 438 'O' Street

438 “O” Street Then and Now


Property today
Satelite Map


Building 1
There was a property on 438 “O” Street Fresno, CA 150 feet south of Santa Clara Street. The owner of the property at the time was Mrs. Helen Hulst. An appraisal was done by Massie’s Appraisal on April 7, 1966 because the City of Fresno needed to find the proper compensation since they were taking the property through imminent domain. Imminent domain is the right to seize private property for public use with just compensation paid to the owner of the property. 
Building 2
The property had 3 buildings all in poor condition and built similar with a concrete foundation, wood framing, wood siding exterior, and rolled composition covered roof. The property also has a bathhouse with attached storage shed. There are 3 dwellings within building 1 were all in poor condition and built. The first dwelling had 3 bedrooms and a kitchen and an exterior bathroom that is shared with the second dwelling. The second dwelling has a living room, 1 bedroom, and a kitchen. The third dwelling has 2 bedrooms, a kitchen, and a bathroom.  The appraiser used comparables to assess the value with 2 methods. The first was based on a price per square foot rate and the second was a gross rent multiplier. Through the comparables the appraiser came up with a price per square foot of $3.50, which would make the total square footage of the 3 dwellings at 2,111 sqft and produce a value of $7,389. For the gross net multiplier it was concluded that the multiplier was 45 and with the 3 dwellings producing $170 per month the value produced is $7,650.
Building 3
Looking at the appraisal with an appraiser friend of mine he pointed out that the validity of the appraisal is something to question. The reasoning isn’t explained very well. According to the information and comparables in the appraisal you can see that the appraiser was being conservative with their established value. This is most evident with the gross rent multiplier (GRM) who seems much to low compared to that in the comparables. After looking through all the material is seems that the appraiser made the GRM work to match the conservative number established by the cost per square foot. If the GRM were the smallest multiplier from the comparables it would have brought value of the property to around $9,000.
The appraised value of the property was $7,500 to looking at different multipliers I think that today the property would be valued at $93,500. He also brought up that this was a terribly difficult property to appraise and it would be more difficult to appraise today. It was concluded that the property was most likely undervalued about $1,500 and should have been appraised at about $9,000.

Sources:
"Measuring Worth - Relative Value of the US Dollar." Measuring Worth - Relative Value of the US Dollar. N.p., 2014. Web. 1 Mar. 2014 <http://www.measuringworth.com/uscompare/>.