House prices up for the month, down for the year

S&P/Case-Shiller composite index of house prices in 20 metropolitan areas rose 1.6 percent in July from June — more than triple the estimate of a 0.5 percent rise found in a recent Reuters poll.  The monthly price increases helped the annual rates, with the yearly pace of declines in home prices slowing to a 12.8% drop in the 10-city index and 13.3% downturn in the 20-city index.  “These figures continue to support an indication of stabilization in national real estate values, but we do need to be cautious in coming months to assess whether the housing market will weather the expiration of the Federal First-Time Buyer’s Tax Credit in November, anticipated higher unemployment rates and a possible increase in foreclosures,” said David Blitzer, chairman of the index committee at S&P.  Despite the overall improvement, annual rates for all metro areas and the two composites remain in negative territory, with 14 of the 20 metro areas and both composites in double digits, S&P said.

Mortgage rates to rise?

The Fed has been buying mortgage-backed securities since late 2008. But next month it plans to finish its purchase of $1.25 trillion in mortgages, and that could be bad news. There is wide agreement that the removal of this support will mean higher mortgage rates, which could hit housing prices and sales hard. Some even worry that it could cause the broader economic recovery to stall.  The program was the largest single injection of cash into the economy by the Fed during the financial crisis, and it will be the longest-lasting source of funds as well. Even though the Fed intends to stop buying mortgages, few people expect that the central bank will start selling them to private investors any time in the next few years.  even if the Fed holds onto the mortgages it has already purchased, the act of no longer buying additional mortgages is likely to raise mortgage rates in the coming weeks.

Experts say a jump of at least a quarter to a half percentage point is likely.  San Francisco Federal Reserve President Janet Yellen warned of higher rates in a speech Monday.  Fed Chairman Ben Bernanke is likely to take questions about the Fed’s mortgage program when he testifies about economic conditions on Capitol Hill Wednesday and Thursday.  The worries about the Fed pulling back support for housing are compounded by the end of up to $8,000 in tax credits for home buyers. To qualify, buyers face an April 30 deadline to sign a sales contract.  Dean Baker, co-director of the Center for Economic and Policy Research, argues that the Fed’s program and tax credit for home buyers “ended the free fall in home prices.”  But he thinks that the removal of this support could mean that home prices could start to drop by as much as 1% a month again. He also thinks mortgage rates could climb by as much as a percentage point in the coming months.

Fed raises discount rate

The Federal Reserve said yesterday it is raising the rate it charges banks that borrow from the central bank when they run short of funds by a quarter percentage point, or 25 basis points, to 0.75%. The central bank said in a statement it made the move in response to improving financial market conditions.  Don’t everyone panic here, because the move is largely symbolic – banks do little borrowing at the discount window and the discount rate has no effect on the more widely watched federal funds rate, which measures the rate banks charge each other for overnight loans. That rate is expected to remain between 0% and 0.25% for the foreseeable future, given the slack in the labor market and the still fragile state of the economy.  But raising the discount rate allows Federal Reserve chairman Ben Bernanke to take another small step toward normal monetary policy, after the past two last years of  financial firefight.  The Fed also shortened the term of some discount window loans and raised the minimum bid in the term auction facilities it uses to supply overnight funds to banks. The central bank said Thursday’s increase should “encourage depository institutions to rely on private funding markets for short-term credit and to use the Federal Reserve’s primary credit facility only as a backup source of funds” and added that it will “assess over time whether further increases in the spread are appropriate.”  It added: “The modifications are not expected to lead to tighter financial conditions for households and businesses and do not signal any change in the outlook for the economy or for monetary policy.”

Fed raises discount rate

The Federal Reserve said yesterday it is raising the rate it charges banks that borrow from the central bank when they run short of funds by a quarter percentage point, or 25 basis points, to 0.75%. The central bank said in a statement it made the move in response to improving financial market conditions.  Don’t everyone panic here, because the move is largely symbolic – banks do little borrowing at the discount window and the discount rate has no effect on the more widely watched federal funds rate, which measures the rate banks charge each other for overnight loans. That rate is expected to remain between 0% and 0.25% for the foreseeable future, given the slack in the labor market and the still fragile state of the economy.  But raising the discount rate allows Federal Reserve chairman Ben Bernanke to take another small step toward normal monetary policy, after the past two last years of  financial firefight.  The Fed also shortened the term of some discount window loans and raised the minimum bid in the term auction facilities it uses to supply overnight funds to banks. The central bank said Thursday’s increase should “encourage depository institutions to rely on private funding markets for short-term credit and to use the Federal Reserve’s primary credit facility only as a backup source of funds” and added that it will “assess over time whether further increases in the spread are appropriate.”  It added: “The modifications are not expected to lead to tighter financial conditions for households and businesses and do not signal any change in the outlook for the economy or for monetary policy.”

House prices up for the month, down for the year

S&P/Case-Shiller composite index of house prices in 20 metropolitan areas rose 1.6 percent in July from June — more than triple the estimate of a 0.5 percent rise found in a recent Reuters poll.  The monthly price increases helped the annual rates, with the yearly pace of declines in home prices slowing to a 12.8% drop in the 10-city index and 13.3% downturn in the 20-city index.  “These figures continue to support an indication of stabilization in national real estate values, but we do need to be cautious in coming months to assess whether the housing market will weather the expiration of the Federal First-Time Buyer’s Tax Credit in November, anticipated higher unemployment rates and a possible increase in foreclosures,” said David Blitzer, chairman of the index committee at S&P.  Despite the overall improvement, annual rates for all metro areas and the two composites remain in negative territory, with 14 of the 20 metro areas and both composites in double digits, S&P said.

Tax credit lures nearly half of all first-time buyers

According to a survey conducted by Harris Interactive on behalf of Zillow.com, 18% of prospective first-time homebuyers said extending the credit from Dec. 1, 2009 to Nov. 30, 2010 would be the “primary influence” in their decision to purchase a home.  An additional 25% said it would be a “significant influence,” 27% said it would have “some influence,” and 31% said it would have “no influence.”  Zillow projects 1.86m homebuyers stand to take advantage of the program if it is extended, and if all potential buyers took the full tax credit, extending the program could cost $14.86bn.  Zillow.com chief economist Stan Humphries said of all homebuyers expected under the 12-month extension through 2010, only one in five homebuyers will enter the market specifically because of the extended tax credit.  In other words, 334,000 mortgages will open because of the tax credit extension.  “While 334,000 may seem like a small number relative to the total number of homebuyers who would claim the credit, their addition to the market next year could make the difference between a robust annual increase in home sales next year and a flat or negative change in home sales relative to this year,” Humphries said.

Tampa Coastal
Tampa Coastal Homes

Cyprus property is a great investment and buying in a top location such as Paphos makes it an even better proposition still. The old adage “location, location, location applies to property wherever you buy and Paphos is a prime location for Cyprus property of all kinds. The town itself is steeped in a rich cultural history and there are archeological sites in the area dating back to before the roman empire. Everything from tombs and ancient mosaic floors to a genuine medieval fort right on the harbor front. The pretty harbor is lined with intimate cafe’ bars and superb restaurants where you can dine whilst looking out over the clear blue Mediterranean Ocean.

The town is actually two distinct towns or areas. Paphos town and Kato Paphos or upper and lower paphos as they are known. The old town being the upper whilst the newer resort area is known as Kato Paphos. There are lots of shops, plenty of supermarkets and the capital city of Nicosia with all the major stores is only a short drive away. A few kilometers along the coast is the beautiful resort of Coral Bay with it’s long sandy beach and lively strip. There is major development going on all over the area and property prices are already amongst the highest in Cyprus. The good news for the would be Cyprus property investor is that prices look set to increase for some time to come.

The resort of Paphos has over the last few years gained an “all year” status and most of the business now remaim open throughout the winter whilst the rest of Cyprus hibernates from around October to March. This is great news again for Paphos property owners who are now able to tap into a year round property rental market. Paphos is also the top location for many other good reasons not least it’s proximity to the Islands major airport and coastal motorway network. The rest of this beautiful Island is easily accessible and airport transfer times are negligible.

If you are still not convinced that Paphos is the best location for Cyprus property wait up because there is an ace in the pack. Cyprus golf property! Wherever you have golf you have a demand for holiday property and Paphos is the golfing center of Cyprus with the best facilities on the Island just outside the town. With the potent mixture of golf, sun and sea it is little wonder that property prices in the area continue to rise faster than anywhere else in Cyprus.

So there will never be a better time to invest in property in Cyprus especially in the Paphos area. If you are seriously considering buying an apartment or villa in Cyprus you would do well to make the move sooner rather than later. You probably need no reminder of what has happened in Spain where many would be property owners hesitated and lost out. Remember they do say that “he who hesitates is lost” and the current Cyprus property boom could make you a winner or a loser in the real estate race so now is the time to act.

Kevino More
http://www.articlesbase.com/travel-articles/cyprus-paphos-property-buying-in-the-top-location-89240.html

The Emerald Isle

Ireland is a country in Europe. It is considered the third-biggest island among the other islands in the continent. The low plains of the country are surrounded by coastal mountains. The abundant vegetation of the country earned it the nickname “Emerald Isle.”

This is because of the constant yet mild rainfall and balmy climate of Ireland. There are also areas in the country that are rocky and blessed with mountain ranges adding more beauty to the country’s grandeur. These characteristics provide the area with a breathtaking green view from a distance. With the magnificent view that the country has to offer, getting an Ireland real estate property is now a growing profit-earning venture among investors.

Growing economy

Before the popularity of the Celtic Tiger in Ireland and when people have been emigrating from the country to find job opportunities, the Ireland real estate has not been that well-known. Properties and homes in the country were not considered as profitable investments. But when the government of the country started to turn the situation around, the economy of Ireland started to grow and the Emerald Isle gradually become popular over the years.

Strategic location

During the time when the economic condition of Ireland was boosted by the government, the prices of Ireland real estate properties spiraled upwards. The government pleaded for its nationals to come back. It also attracted investments from within the country and from the neighboring regions.

Eventually, real estate properties in the country became a big hit. This goes especially true in historically rich areas. Dublin is one of the places in Ireland that has grown quite popular for investments. With the growing economy of the country, investments on an Ireland real estate are promising. The real estate market of the country is strong, and the popularity of the investments depends greatly on its location.

Market possibility

The rural property of Ireland also has a market possibility. Investors of Ireland real estate and other people who would want to own a home in the country should look into particular regions that are rich in history. Numerous websites offer a wide range of selection for properties suitable for the lifestyle you dream to live. Locations that are full of charm and beauty are the best places to start your investments. The country of Ireland is magnificent, and if you invest on the right areas, you are sure to make considerable profit out of your properties.

Things to consider

If you want to purchase properties in Ireland as an investment, contact agents or realtors. Inquire about the various locations that are considered as tourist destinations. When you want an opportunity on an investment for a long time, consider the location of your property.

When you purchase an Ireland real estate, see to it that the area is worth your money. Popular locations that will mostly appeal to the hearts of the people or property buyers are those that are located near the coastlines. Hence, properties nestled on beaches are always great investments. Aside from beaches, inns or resorts near the mountains are also profitable. Most people love waking up to the natural fresh scents of the mountains. All these things can be experienced when you avail of an Ireland real estate property.

Seth Willis Jr.
http://www.articlesbase.com/real-estate-articles/ireland-real-estate-127990.html