May 19, 2008
We continue to hear reports from analysts and publications that we are not out of it yet and probably will be in it for another 9-12 months before we see things turn around. Yet there is chatter here and there indicating that April 2008 will mark the bottom of the U.S. housing and condo market. There are already bidding wars in certain areas of San Diego already according to local agents.
Cyril Moulle-Berteaux, managing partner of Traxis Partners LP, a hedge fund firm based in New York. Claims that “…most people forget that the current housing bust is nearly three years old. Home sales peaked in July 2005. New condo and home sales are down a staggering 63% from peak levels of 1.4 million. Housing starts have fallen more than 50%, and, adjusted for population growth, are back to the trough levels of 1982.”
Now let’s be honest – a market turnaround does not mean that we will see prices return to the days of 2005. That probably won’t happen for a very long time. What we will see is that things are going to stop getting worse – which needs to happen before they get better anyway.
Moulle-Berteaux goes on to state “…furthermore, residential construction is close to 15-year lows at 3.8% of GDP; by the fourth quarter of this year, it will probably hit the lowest level ever. So what’s going to stop the housing decline? Very simply, the same thing that caused the bust: affordability.”
Part of the problem that brought on the housing crisis and subprime meltdown simply boils down to the fact that housing became too unaffordable for first time homebuyers. When you are spending over 33% of net income on your mortgage – it is proven to be too much – hence the subprme crisis.
When prices got too high for enough buyers – the bubble burst, and people stopped buying.
No we are seeing prices fallng anywhere from 10-15%, while incomes have continued to rise and mortgage rates have come down 65-70 basis points from their previous highs. All of these factors are making things more affordable for all homebuyers. People that previously could not afford a new home are now falling into the category of being able to afford one.
There are a lot of new condos, homes, forclosures, etc. on the market right now, so the next question is “Will prices stop falling and when?” The best way to answer this is to look at historical trends from previous housing slumps in the last few decades. In the past five major housing market corrections, every time home sales bottomed, the pace of housing price declines slowed significantly – up to 50% within one or two months. So, once home sales stop declining, inventories of unsold condos and homes have historicaly already started falling in absolute terms. Moulle-Berteaux remarks, “That’s the case right now: New home inventories peaked at 598,000 homes in July 2006, and stand at 482,000 homes as of the end of March. This inventory is equivalent to 11 months of supply, a 25-year high — but it is similar to 1974, 1982 and 1991 levels, which saw a subsequent slowing in home-price declines within the next six months…inventories are declining primarliy because construction activity has been falling for such a long time…”
Many of the “housing gloom analysts” claim that house prices need to fall another 30% to bring them back in line with where they’ve been historically for things to turn around. What many people don’t know is that this is usually based on an analysis of house prices adjusted for inflation. Real house prices are 30% above their 40-year, inflation-adjusted average, so they must fall 30%. This simplistic analysis is appealing on the surface, but is flawed for a variety of reasons.
Most importantly, it neglects the fact that a great majority of Americans buy their houses with mortgages.
And if one buys a house with a mortgage, the most important factor in deciding what to pay for the house is how much of one’s income is required to be able to make the mortgage payments on the house. Today the rate on a 30-year, fixed-rate mortgage is 5.7%. Back in 1981, the rate hit 18.5%. Comparing today’s house prices to the 1970s or 1980s, when mortgage rates were stratospheric, is misguided and misleading.
Nonetheless, housing prices are what led us into this credit crisis and this recession. These are also what is likely to lead us out. And that process is underway, right now. Now that you are convinced the time is rignt for a new condo or home – check out www.newcondosonline.com for the largest selection of for sale attached housing on the internet.
May 14, 2008
BREAKING NEWS — New Condos Online has recently begun a new campaign to increase exposure into our Latin American and Mexican markets by contacting fantastic new developments and featuring their projects on our site. We then take these great new projects and create pay per click advertising programs and optimize their listing to have a high organic search presence in yahoo, Google, and MSN respectively. New Condos Online has been making a specific push in these areas because we have seen a dramatic increase in traffic due in part to our continued high ranking listings but also due to the fact that New Condos Online is starting to gain momentum as a world wide resource for advertising new for sale attached housing, including — lofts, townhomes, condos, condo hotels, condo resorts and row homes; New Condos Online recently began a special promotion for listing Single family homes as well.
To put this idea into perspective I’d like to introduce an awesome new development that has started breaking ground as a condo development in Nicaragua, Milagro Del Mar! translated as “Miracle of the Sea” it sits in a great great location, located within The Gran Pacifica Resort on the Pacific Coast of Nicaragua, Milagro del Mar is the newest development from the award-winning craftsmen at Hunter Blair Homes. Roger Keeling, the principal developer of Hunter Blair and Milagro Del Mar has broken ground on this stunning new development in Nicaragua and plans it to be one of the premier new projects with in Gran Pacifica and in Latin America. New Condos Online also features new condos in Mexico and new condos in Belize and condos in Panama.
Sales have been brisk at Milagro del Mar – the main building is more than 50% sold. Other construction at Gran Pacifica, including the new 5-Star Resort Hotel, is also moving quickly. The time is now to take advantage of this dynamic investment opportunity and position yourself for rapid appreciation. Claim your piece of paradise in Milagro del Mar, Gran Pacifica’s premier condominium community!
May 13, 2008
Trump International Golf Club and Residences comes to NCO
We are very excited to advertise this incredible new project in Puerto Rico. I was actually just done there last month and saw the site for this condo project. As Puerto Rico grows in popularity as a destination for vacations, Puerto Rico Condos are starting to sell across the globe. With 850 units this large project changes the landscape of Puerto Rico and offers a lot of new housing options. This property offers a PGA golf course, Trump Tranquility Spa, A Beach Club, restaurants, and luxury dining. You will notice that this property in Puerto Rico is featured all across our website at www.newcondosonline.com. They are looking for buyers across the globe and so far the property seems to be a large success. We look forward to representing them and helping bring leads and buyers to the sales team for this amazing condo project in Puerto Rico. Check out all the details of this project here.
View all of our International Condo Listings Here
I read recently that foreclosures are becoming more and more common these days. Yes, that was sarcastic. Foreclosures, from what I have heard, are not fun to deal with. From getting a huge drop in your credit to not being able to ever buy a condo or home again for 7 years, foreclosures don’t seem to be something that I would ever want to deal with. With that said, how are other people dealing with your foreclosure? More specifically, how are people in your community being affected by your misfortune? A large part of living in a community like a condo high-rise or a new home community is the fact that you need to pay certain “dues” each month. These dues can be a little as $75/month and can range up to $2500/month. Dues are used to keep a community running. For example, pools, trash, taxes, workout facilities, janoritorial duties and anything else your community requires needs extra money, known as “dues” to operate. What is now happening, is that neighbors and residents are forced to pay more as their neighbors are foreclosing on their new condos and/or new homes. This is just another example how the distressed housing market can and will directly affect your pocket. Beware and make sure that you budget enough for the following years!
May 4, 2008
So, Chevron – that somewhat big gas company – recently posted a little over a $5 Billion profit. That’s $5,000,000,000.00!!!! With gas prices extremely high and with no notion of going south, consumers are looking for ways to save time in the car. I read about Chevron and I thought to myself that owning in a mixed-use condo development in a hip area would be a very smart idea. Think about how much gas you waste driving to the grocery store, drug store, coffee joint, gym, restaurants and whatever else, you use your car for. Now, just think if you lived in a mixed-use new condo. Many of these new developments possess the intangibles that are really starting add up. In San Diego, for example, many mixed-use San Diego condo developments are saving many residents of this city tons of money on gas. My friends who live downtown in a mixed use developments are seldom driving unless they are driving to and from work. They never use their car during the weekend as they have everything they need within a few floors from their condo. Even if you’re not living in a mixed-use development, but living in a condo downtown, you’re going to reap the benefits and hopefully not contribute to the wealth in the Middle East. Not to get poliitcal, but the majority of our oil comes from the Middle East. If you don’t wish to contribute to this, then I would suggest the following, move to a urban area where you don’t need a car. If you are in desparate transportation, by a bicycle.
May 3, 2008
New Condos Online is proud to now feature a Related Companies project in New York, New York! Many new Manhattan condos are rising in New York but Riverwalk Court will for sure stand out. Riverwalk Court is a joint effort between The Related Companies and The Hudson Company. Situated to be erected on Roosevelt Island in 2009, this development will featured condos for sale under $600K! That may sound crazy but in NYC, that’s a steal! Offering 1-3 bedrooms and with floorplans starting at 682 sq ft, owning a unit here will be a sound investment. This project will combine city living with the essense of tranquility thanks to the East River and NYC Skyline. One of the sweetest amenities to this development will be the rooftop cabanas which will encompass panoramic views of the skyline. Other amenties include a yoga studio/fitness center, children’s playroom, entertainment lounge, and a 24-hour concierge. So the question I will seem to ask buyers who can afford a home here, why would you not want to own here? I can see the demand only increasing over time as the project nears completion – which by the way, will be in 2009. Live the life you’ve always dreamed and buy a condo at Riverwalk Court!
May 2, 2008
NCO Capital is a division of New Condos Online. NCO Capital has been in the news lately. We’ve been very active at the largest real estate investing conferences for distresssed real esate. We manage thousands of new developments and condo projects. We were asked to attend because of our exposure and high monthly end-users who visit NewCondosOnline. We play a very active role in the capital markets. We represent the voice of the developers. We have a responsibility to provide solutions to projects in struggling markets. We’re connected with the largest funds in the country to buy back units. We also provide investors (cash only buyers) as sales vehicle into condo projects.
Please view the latest confernece in New York. I’m a keynote speaker on Wednesday May 28th.
The Ninth Annual US Real Estate Opportunity & Private Fund Investing Forum. The Forum will be held May 27-28, 2008 at the Grand Hyatt, New York.
Here’s the latest conferences that New Condos Online is taken part in.
Current/Past speaking events for NCO Capital:
1. Participate speaker at the Distressed Residential Real Estate Conference at the Trump Hotel in Miami.
2. Participate speaker at The Ninth Annual US Real Estate Opportunity & Private Fund Investing Forum at the Grand Hyatt in New York. What NCO Capital does is:NCO Capital, through our partnership with NewCondosOnline.com has developed a global list of relationships in all areas of real estate including real estate investments, capital sources, and banks, media firms, marketing companies, commercial real estate firms and power brokers/agents. Through our network of well-respected companies and individuals, NCO Capital has the power and dynamic strategies to provide our clients with the necessary resources.
NCO Capital Services:
1. Procuring construction financing
2. General debt and equity financing for new developments
3. Bulk purchasing opportunities with the Nation’s top firms (Carlyle, Related Group, Broe, Inc. & ect)
4. Online and email marketing.
May 1, 2008
(February 21, 2008, Miami-FL)-Wyndham Resorts has set its sights on Costa Rica for their latest and most luxurious condo project; the real estate experts have chosen Jaco Beach as the grounds to create their exclusive and ultra modern property. Surrounded by stunning beaches and mountains, Wyndham Resort & Residences Jaco Beach offers the finest amenities combined with the world’s most breathtaking sights. Jaco Beach is one of the most desirable locations throughout Costa Rica for families, business travelers, and surfing aficionados alike. Yet, until now, options to own a luxury beachfront property in this “urban oasis” have been limited and sub-par. Wyndham Resort & Residences Jaco Beach will create a new model for luxury living and vacationing through their magnificent beach front condo-hotel in Jacó, Puntarenas.
Jaco Beach’s nightlife will be revolutionized by the chic Rooftop Sunset Bar atop the resort featuring breathtaking views of the Pacific Ocean. The bar will be the first of its kind on the beaches of Costa Rica. A plethora of activities will cater to the whims of everyone from surfers and fishers to golf enthusiasts with the area’s consistent waves, top sport fishing areas, and beaches. Of note will be the 18 hole golf course located less than 5 minutes from the property, as well as a public Marina for the avid boater and yachtsman. With such nearby activities and Costa Rica’s natural beauty, Wyndham Resort Jaco Beach will be a perfect destination for second home buyers, couples, and families.
Wyndham Resort & Residences Jaco Beach will be comprised of two conjoined buildings; one featuring 13 floors and the other housing 11 floors. The buildings will be equipped with a common spacious lobby, glass bridge connector in several floors, 24 hour security, four state-of-the-art elevators, and high speed internet and cable in every unit. The common areas will house several pools, a Jacuzzi, an event room, day care, an opulent spa with an ultra-modern gymnasium, a beach club and a beach level restaurant. The 136 condo-hotel units will have top of the line quality finishes with porcelanata floors and European kitchens (Poggenpohl) complete with imported appliances. The project’s developer Rica Costa Group is one of the most prestigious in Costa Rica and has developed such renowned international projects as: Solaris at Brickell, Mediterranea in Coral Gables, Valle del Tamarindo, Torre Meridiano, and Via Lindora. Venetian Capital, one of South Florida’s leading real estate sales teams, will lead the sales efforts.
Costa Rica is a one of Central America’s eco-tourist hot spots and contains approximately 5% of the world’s biodiversity. Its beaches, rivers, mountains and colorful fauna make the area an ideal destination for everyone. Bordering Panama and Nicaragua, it is surrounded by the Pacific Ocean on the west, and the Caribbean on the east. All of this amazing and breathtaking diversity and natural beauty can be enjoyed at Wyndham Resort & Residences Jaco Beach.
For more information please contact Venetian Capital at 305-377-3032 or email: firstname.lastname@example.org
For more information, please visit www.wyndhamjacobeach.com
For media inquiries, please contact Victoria@americasmediagroup.com
Panama is one of the fastest growing real estate markets in the world; and Trump Ocean Club – one of the first luxury projects to enter the market, is “sailing” to the finish line. Utilizing strategic marketing and offering a quality product, this gorgeous landmark is half-way built and almost fully sold-out. Not all Panama City buildings, though, have the guarantee of Trump distinction and quality, which has resulted in an influx of marketing “tricks” to boost slow (or non-existent) sales.
One element of Trump Ocean Club’s success has been the team’s avoidance of short cuts or ploys, and a constant focus on creating (and delivering) the best, most exclusive and unique project in Panama. TOCs competitors have used all kinds of silly methods to save their projects, such as paying a celebrity to say they are “owners”, throwing million dollar parties, giving away cars, etc. The buyers have been smarter than that – they simply want the best product on the market, and they found it at Trump Ocean Club. In reference to the recent celebrity tales heard around town, celebrities that buy in a Trump building know they will never broadcast their information. TOC respect’s their client’s privacy immensely, that’s what make it so exclusive. The proof as they say is in the pudding – Trump Ocean Club has made constant sales each and every month, often tripling the numbers of even their closest competitors.
Trump Ocean Club simply requires no tricks, they are continually ahead of the curve, and have steadily reached their sales goals for two years straight, even with the addition of the new Bay lofts. While Trump’s competitors are targeting a stagnant U.S. economy, Trump Ocean Club reached out to this market early-on and established themselves as the pace leader. As the building literally changed the face of Panama real estate, the team began looking to the future and reaching into new markets. In recent months, TOC has seen buyers from Russia, Spain, the UK, Germany, and Amsterdam, amongst others. As one of the only Panama City properties well-into construction, TOC is even seeing sales from the U.S. again, as buyers feel assured in knowing this building not only meets the regulations of Panama, but the strict standards of international quality from the Trump Organization as well.
Jack Studnicky’, Vice President of sales for Trump Ocean Club calls the phenomenon, “The Trump Mystique. This project has been able to sell itself by simply offering the most reliable, secure and solid property in Panama”. Trump Ocean Club is creating a community within itself, a “live, work, shop, play” philosophy that simply has no market competition. The Trump Ocean Club master plan includes condominiums and condo-hotel units, a magnificent wellness spa, an oversized infinity pool & deck, Yacht Club & Pier, a private beach club, an electrifying on-site 45,000 square foot Trump International Casino, upscale shops with international brand recognition, exclusive office lofts, an elite hotel sky lobby, a state-of-the-art business center, concierge service, valet parking, and bellmen. Above all, TOC buyers both old and new have the peace of mind to literally watch this landmark go up – either in person or on the live web cam. The lesson learned from this history-in-the-making project is that exceptional quality and a unique product need no “trickery”; consumers are smarter than that. Visit TRUMPOCEANCLUB.COM for more information or call 1-877-89 TRUMP
PRESS CONTACT: Victoria@americasmediagroup.com or 305-572-9883 x317.