Author: ipgocorp

(RECAP: Younger adults are finding themselves moving to higher-priced housing markets to be closer to more employment options. The housing market has historically seen younger adults rent and wait to buy a house later in life. One of the biggest reasons they were waiting was that they found job security an integral part of their decision. This “job-centric” approach to home buying demonstrates this group’s affinity for foresight and planning. Many recent graduates have high student loan payments and want to ensure stable and long-term employment is within reach.)

LOS ANGELES, CA – Hanover Company recently opened the doors to its newest LA property, Hanover Olympic. This property is unique to the company as it will lease out 20 apartment homes with Eco-Green finishes.

Olympic’s Eco-Green community is the first of its kind for Hanover who has properties across the country already featuring the environmentally conscious LEED certification. This certification is a symbol that a property has made the conscious decision to make a property more sustainable with energy saving features benefiting water, energy conservation, and more.

While the new Olympic property is LEED registered, the most notable environmentally friendly features are the 20 apartments powered by rooftop solar panels. These living spaces are equipped with Nest thermostats, occupancy sensors, an iPad to monitor energy consumption, and energy efficient finishes. The new eco features are designed for residents wanting to live a more green life without sacrificing the luxuries and comfort that come with living in downtown LA.

This property is on the forefront of buildings being built with the environment in mind. The state of California has consistently led the way towards environmentally friendly commercial and residential buildings. Efficiency standards for new buildings took effect on new construction January 1, 2014 and continues to keep California as the nation’s leader in energy efficient structures. These standards looks to increase energy savings by 25% for homes and 30% for commercial buildings. 

Hanover Olympic is located in Downtown L.A. at 936 South Olive Street, just minutes from the Staples Center and the Fashion Institute of Design & Merchandising.

SEATTLE, WA – Walk Score, a Redfin company, released its 2016 ranking of the most walkable U.S. cities with populations over 300,000. With a Walk Score of 88.9, New York remains the nation’s most walkable city.

Long Beach, California (69) is the only Southern California city included in the top 10, narrowly beating out Baltimore (68.7). Long Beach also had the largest yearly increase of all 10 cities, up 3.2 points.

“Recognizing Long Beach as the most walkable city in Southern California, and one of the most walkable in the entire country, is a testament to the hard work we’ve been doing to improve and expand pedestrian infrastructure and support safe and convenient travel for everyone,” said Long Beach Mayor Robert Garcia. “We intend to continue making Long Beach a great place to walk and to live, work and visit.”

Notable Improvements in Walkability:

All of the top 10 cities saw an increase in their respective Walk Score ratings, indicating that the nation’s largest cities are becoming more walkable. Among the top 50 most walkable cities, only two, Honolulu (63.3) and Columbus, Ohio (40.4) had Walk Scores that improved by less than a point.

“Improving a city’s Walk Score takes work. In these communities, construction crews have built an invitation for walking,” said Eric Scharnhorst, livability analyst at Redfin. “Safer sidewalks are now connected to a greater variety of everyday amenities. This creates opportunities for both local businesses and families.”

Omaha, which ranked 32nd, had the largest year-over-year Walk Score increase among the 50 most walkable cities, with an improvement of 4.3 points. With a Walk Score of 45.4, the city is still considered “car dependent,” but many neighborhoods saw big gains in their ratings.

St. Louis, Missouri, Denver, Colorado, Aurora, Colorado, Santa Ana, California as well as Austin and Houston in Texas all saw a Walk Score increase of four points or more.

FORT COLLINS, CO – Core Spaces, a Chicago-based real estate development and management firm known for offering modern, trend-setting student housing with a wide variety of amenities, has acquired a three-year old, 665-bed community at Prospect and College avenues, one block from Colorado State University in Fort Collins.

The purchase, which closed April 19, was the first for Core Spaces since the firm established its acquisitions platform with the hiring of former Harrison Street executive Brian Thompson in September 2015. The firm previously completed six other student housing communities as ground-up developments.

“This community was an ideal fit with our objective of adding complementary assets to our portfolio, including not only on- and off-campus student housing, but also potentially campus-adjacent hotels, infrastructure and other education-related real estate,” says Mr. Thompson, Director of Acquisitions. “This was an exciting opportunity to acquire an attractive, well-located, good-performing asset with even greater upside potential.”

Core Spaces plans to tap that potential by significantly renovating the five-story building before the start of the fall semester, adding a wide variety of sophisticated indoor and outdoor luxuries with all the comforts of home.

“Core Spaces is well known throughout the country for offering exceptional, luxurious housing that fits with today’s college students’ lifestyles,” says Benjamin F. Modleski, Core Spaces’ Chief Operating Officer. “We’re modernizing the State on Campus Fort Collins community to ensure that it meets our high standards and will be a place where college students truly want to live.” The community is currently 100 percent occupied and already 85 percent pre-leased for the 2016-17 school year.

Core Spaces is relocating the fitness center, increasing it to 2,500 square feet, and adding state-of-the-art equipment, free weights, stand-up tanning facilities, a yoga room and a sauna. The company also is improving the three outdoor courtyards with the addition of a hot tub, sand volleyball court, fire pits, barbecue grills, and gaming and gathering areas for relaxing and enjoying the mountain views.

Other areas to be improved include the lobby/reception area and offices and the addition of a 313-space parking garage. Finally, the company is expanding the computer lab with new computers, printers, four group study areas and individual study nooks.

Mr. Modleski noted that the renovation will be well positioned to capitalize on other new developments near Colorado State University that include a new University Hospital and an on-campus football stadium, which is slated for completion in 2017.

“CSU and the City of Fort Collins are thriving and regularly adding expanded services and new, updated facilities,” notes Mr. Modleski. “Then add in the mountains, the vibrant business district, all of the local attractions and beautiful views, and this area is without compare. At Core Spaces, we are very pleased to be part of such a dynamic community.”

MCLEAN, VA – Freddie Mac released its Multi-Indicator Market Index (MiMi), showing that many of the nation’s housing markets continue to improve with one more state, Michigan, returning to its historical benchmark level of housing activity.

The national MiMi value stands at 83, indicating a housing market that’s on the outer range of its historic benchmark level of housing activity, and little changed with a +0.36 percent improvement from January to February and a three-month improvement of +1.05 percent. However, on a year-over-year basis, the national MiMi value has improved +7.46 percent. Since its all-time low in October 2010, the national MiMi has rebounded 40 percent, but remains significantly off from its high of 121.7. 

News Facts:

Thirty-five of the 50 states plus the District of Columbia have MiMi values within range of their benchmark averages, with the District of Columbia (101.7), North Dakota (95.3), Hawaii (95.2), Montana (94.8) and Utah (94.6) ranking in the top five.

Fifty-nine of the 100 metro areas have MiMi values within range with Austin, TX (100.5), Denver, CO (100.8), Salt Lake City, UT (97.7), Honolulu, HI (97.4), and Los Angeles, CA (97.0) ranking in the top five.

The most improving states month over month were Tennessee (+1.93%), Mississippi (+1.46%), Texas (+1.11%), Oregon (+1.08%) and Nevada (+0.91%). On a year-over-year basis, the most improving states were Colorado (+15.54%), Florida (+15.33%), New Jersey (+14.37%), Oregon (+14.30%), and Nevada (+14.24%).

The most improving metro areas month over month were Youngstown, OH (+3.55%), Memphis, TN (+2.54%), Jackson, MS (+1.82%), Knoxville, TN (+1.58%) and Dallas, TX (+1.43%). On a year-over-year basis, the most improving metro areas were Orlando, FL (+19.88%), Denver, CO (+19.01%), Tampa, FL (+18.36%), Cape Coral, FL (+18.07%), and Portland, OR (+16.85).

In February, 36 of the 50 states and 68 of the top 100 metros were showing an improving three-month trend. The same time last year, 21 of the 50 states, and 69 of the top 100 metro areas were showing an improving three-month trend.

Freddie Mac Deputy Chief Economist Len Kiefer stated, “The U.S. housing market is poised to have its best year in a decade. The National MiMi currently stands at 83, the highest since September of 2008. And the trends are nearly all positive. Home purchase applications are headed higher, with the National MiMi purchase applications indicator increasing nearly 12 percent from one year ago. The mortgage delinquency crisis is not completely behind us, but delinquencies are generally trending down, with the National MiMi current on mortgage indicator at 85.5, the highest reading since August 2008. Robust employment growth has helped drive the National MiMi employment indicator above its historic benchmark, and stands at 106.5, up nearly 6 percent from a year ago. The National MiMi payment-to-income indicator did fall 2.76 percent from the previous month due to lower mortgage interest rates. Lower rates are helping to support homebuyer affordability across the country, for the moment outweighing the impact of higher house prices.”

Kiefer  continued, “The national trends largely hold up across the country. We still see pockets of weakness in the Midwest and South, while the Northeast and West are generally doing better. But most markets in the Midwest and South are improving according to MiMi. For example, Michigan’s MiMi reading increased 7.49 percent year-over-year in February, moving within range of its historic benchmark.”

NEW YORK, NY – Mortgage rates increased for a second consecutive week, with the benchmark 30-year fixed mortgage rate climbing to 3.83 percent, according to Bankrate.com’s weekly national survey. The 30-year fixed mortgage has an average of 0.16 discount and origination points.

The larger jumbo 30-year fixed jumped to 3.76 percent, and the average 15-year fixed mortgage increased to 3.05 percent. Adjustable mortgage rates were higher as well, with the 5-year ARM rising to 3.21 percent and the 7-year ARM moving higher to 3.44 percent.   

Mortgage rates moved higher for a second week in a row, rising to a one-month high. The movement occurred in the run-up to the Federal Open Market Committee meeting as investors hedged against the possibility of stronger hints from the Fed about coming interest rate hikes. That didn’t happen, and almost immediately bond yields began to retrace their steps. Mortgage rates are closely related to yields on long-term government bonds. With the Fed playing it close to the vest about their interest rate intentions, the likelihood is that low rates will be around a while longer. This should keep a lid on mortgage rates, and may push them down further, amid the flurry of economic activity in the week ahead.

At the current average 30-year fixed mortgage rate of 3.83 percent, the monthly payment for a $200,000 loan is $935.33. 

SURVEY RESULTS

30-year fixed: 3.83% — up from 3.75% last week (avg. points: 0.16)

15-year fixed: 3.05% — up from 3.00% last week (avg. points: 0.16)

5/1 ARM: 3.21% — up from 3.13% last week (avg. points: 0.18)

Bankrate’s national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in 10 top markets.

For a full analysis of this week’s move in mortgage rates, go to www.bankrate.com

The survey is complemented by Bankrate’s weekly Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next seven days. There is no consensus feeling this week with 46 percent predicting mortgage rates will tumble. The remaining respondents are evenly divided, with 27 percent forecasting further increases and 27 percent expecting mortgage rates to remain more or less unchanged in the coming week.

PALO ALTO, CA – Consumer awareness of the connected home is growing quickly, according to findings released from connected home studies that were fielded by Kelton Global and Research Now in the U.S. earlier this year. Commissioned by Nest, the studies were designed to uncover consumer sentiment about the connected home market.

Findings include:

Eighty-one percent of Americans either own or are interested in purchasing a connected home product in the next year.

To Americans, the main benefit of having a connected home product is increased convenience (54 percent), followed by increased security (44 percent), a reduced energy bill (38 percent) and boosted home value (21 percent).

Thirty-eight percent of Americans are more interested in connected home products today than they were six months ago.

The increased interest is also reflected in the retail environment.

“Connected home products like the Nest Thermostat are among one of the fastest growing categories in the retail environment,” said Amanda Parrilli, Director of Connected Home, Home Depot. “And considering the connected home is really just starting to take off, the potential for the market is incredibly exciting.”

Family and Home are Top Priorities

The average connected consumer is family- and home-oriented. An overwhelming 89 percent said spending time with family is their first priority, yet approximately half (51 percent) rarely have enough time in the day to do all they need. Perhaps that’s why 63 percent wish that their home could just take care of itself. Fifty-six percent feel it’s more important that their home is comfortable than looks good, and 73 percent love their home and want to live in it for a long time.

Home Safety Top of Mind

Increased safety and security continue to be compelling reasons to integrate connected home technology with 44 percent of Americans indicating this as a key benefit of having connected products. Fifty-four percent value the convenience they offer, such as the ability to monitor and control their home from anywhere.

Reducing monthly bills and environmental benefits are also key motivators for consumers to install connected home products, with 38 percent pointing to reduction in home energy bills as a benefit of connected home products. Fifty-nine percent of Americans also indicated they worry about their energy consumption.

Consumers Remain Cautious, But Are Willing to Spend for Ease of Use

Despite growing awareness of connected home products like thermostats, Americans are concerned about keeping their personal information secure online (82 percent) and worry that the technology in their home will quickly become outdated (43 percent). Understandably, they are willing to pay extra for high quality electronics in their homes (63 percent). Americans just want the technology in their home to work well together (86 percent).

New Technology Disrupting Established Home Brands

When it comes to specific products in the home, Nest is gaining brand awareness in comparison to long-established thermostat companies. Asked which thermostats for the home come to mind, a growing number of Americans are naming Nest over established brands. Nest Thermostat unaided awareness grew from 6 percent in 2013 to 26 percent in 2016.

Awareness of connected home brands gradually increases with household income levels. However, across multiple income levels, more than half of Americans can name at least one connected home brand.

When asked which brands in the “connected or smart home” space came to mind, 21 percent named Nest as the top brand, while Apple takes second place with 12 percent of mentions and Samsung follows with 8 percent of mentions.

“Once viewed as luxury items, connected home products are now reaching mainstream consumers across all ages and incomes,” said Tom Bernthal, founder and CEO, Kelton Global. “What this study tells us is that the connected home space is heating up with a few important brands paving the way and more consumers than ever considering the benefits of embracing the connected lifestyle.”

ATLANTA, GA – Cortland Partners has announced the launch of “Attiva,” its new active living community platform, which will specifically address the housing needs of Baby Boomers seeking a high-end, purpose-built active living community.

“Baby Boomers are the fastest growing demographic of renters; however, our research shows that many of the communities built for this demographic are out-of-date and do not enable the convenient, flexible and active lifestyle many older adults want,” said Steven DeFrancis, Cortland Partners CEO. “Through the launch of Attiva – which fittingly means ‘active’ in Italian – Cortland Partners is addressing the lack of purpose-built rental products for this key demographic by providing communities that offer a luxury feel at a reasonable price, with convenience and a sense of community.”

The Attiva brand solidifies Cortland’s growing portfolio of active living communities, which includes properties in the Dallas-Fort Worth metro area, with plans to expand into other markets. As with all Cortland properties, these communities undergo significant renovations meant to deliver a superior living experience through well-informed interior design, high-end amenities and community spaces that promote connectivity, flexibility and convenience. Legacy Senior Residences in Fort Worth is the first community to be rebranded with the Attiva name and is now rebranded as “Attiva Park.” The renovation process is well underway with the apartment homes, resort-style swimming with cabanas, and clubhouse undergoing renovations to bring the upscale design and functionality residents of a Cortland owned and managed community have come to know.

Compared to previous generations who favored traditional senior housing options, many of today’s Baby Boomers are choosing active living and rental communities. These communities are increasingly attractive as they empower residents to connect with like-minded neighbors and enjoy high-end amenities such as granite countertops, resort-style cabana pools and luxurious finishes. Additionally, communities like the Attiva properties reduce concerns and stress around home maintenance and provide activities that support active lifestyles, such as exercise classes, academic or spiritual programs and excursions.

“We have found that older adults aren’t just looking for a place to live, they are searching for a community that they can call home and make their own,” said Michael Hartman, Director of Investments at Cortland Partners. “With our proven track record of creating value by acquiring and renovating well-located communities and our in-house team that includes construction, interior design, and manufacturing, we are confident that we can create communities that provide the living experience that helps older adults truly enjoy the next chapter in their lives.”

(RECAP: Americans who rent their home are nearly twice as likely as those who own their home to say they worry about not being able to pay their housing costs. While upper-income Americans are more likely to own and lower-income Americans are more likely to rent, renters worry more than homeowners at all income levels. These results are based on more than 5,000 combined interviews from Gallup’s 2013-2016 Economy and Personal Finance surveys. Gallup has consistently found renters are more worried than homeowners about making housing payments, both overall and by household income level, in the 16 years it has conducted the Economy and Personal Finance survey. But the gap in homeowner-renter worry has increased among both middle- and upper-income owners compared with the past.)

Servicer Issues
(RECAP: Mortgage servicing remains a sore spot for consumers, especially those having problems paying their loans. The Consumer Financial Protection Bureau (CFPB) has released its latest monthly consumer complaint snapshot, putting a spotlight on mortgage complaints. Since CFPB launched its Consumer Complaint Database in June 2012, it has handled over 850,000 complaints across all financial products. As of April 1, 223,100 of those complaints were mortgage related. The Bureau has grouped mortgage complaints into three categories – problems when consumers are unable to pay; confusion over loan transfers, and communication issues involving servicers. “Today’s report shows that consumers are still running into too many dead ends and obstacles in resolving issues with their mortgage servicer,” said CFPB Director Cordray. “The Bureau will continue to press to make sure that people can get the right information and the timely help they need.”)