| RENTAL MARKET A BRIGHT SPOT
IN HOUSING PICTURE |
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 While
pessimism continues to dominate real estate market reports,
such reports on rental housing are coming out with more
optimistic conclusions. Reis Inc., a firm that specializes
in commercial-real-estate reporting and analysis, concluded
that the average rent for a residential unit was $997 per
month in the second quarter of this year, up $23 from the
second quarter of 2010. The Reis report also noted that
apartment vacancies went down in 80 of the 82 markets it
covered.
Christopher Herbert, research director at
Harvard University’s Joint Center for Housing Studies, also
expressed optimism in rental housing, as he told MBA
NewsLink, “Rental housing markets are tightening and may
begin to lead a modest recovery in housing construction this
year.” |
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| ELLIOTT® REMAINS PROACTVE
ON AMC REGISTRATION |
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 As
an appraisal management company (AMC) ELLIOTT® continues to
be proactive by registering in all states that have
registration laws. For a list of states where we have
registered, as well as states where our registration is
pending, go to
AMC Registered States.
ELLIOTT® performs appraisal services in all 50 states in the
United States and also performs evaluation services
internationally. |
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| DESTRUCTION OF NEW HOMES
CONTINUES |
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Among casualties of the economy’s effect on the real
estate market are brand new homes that are being
purposefully destroyed by the companies that own them for,
believe it or not, business reasons. These
“addition-by-subtraction” procedures tend to take place in
areas with declining real estate prices.
Two years
ago we reported that Guaranty Bank of Austin had 16 new
homes, which it had acquired via foreclosure, demolished in
Victorville, Calif. Since then, national builder KB Home
destroyed three model homes in Marana, Ariz., and Lennar
Corp., bulldozed eight unfinished homes it had purchased
from another construction company that has since gone out of
business. Lennar is in the process of replacing the more
expensive homes it leveled with smaller, more-affordable
ones. Lennar’s Charles Schein said the homes it had
bulldozed had been vacant too long to be salvageable.
“We’ve adjusted our offerings to fit the needs of the
people today.” Schein said. |
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| HOTELS ARE SELLING AT
RECORD PRICES |
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 According
to Real Capital Analytics, a research company, lodging
prices in the United States are higher than they have ever
been. Real Capital determined that investors are now paying
almost $185,000 per room for lodging properties in this
country. The previous high per room for such property was
reached in 2006, when it was at $153,000. This peak was
followed by a 37% drop, and 2009 values reached a record
low.
According to Global Viewpoints of Commercial
Real Estate, an online publication, Bloomberg, the
financial-reporting news service, indicated the recent jump
in hotel prices was due to real estate investment trusts
making several high-end purchases. In other words,
economists are skeptical that the market has improved to the
point of justifying such a lofty average hotel price.
“Obviously, you have fundamentals improving, but clearly
the economy is not picking up as fast as we had hoped,” said
Rick Kleeman, managing partner of a Connecticut real estate
investment firm called Wheelock Street Capital. “It’s not
the ’06 or ’07 crazy market but, on average, the market has
run ahead of itself.” |
 ASK
MARTITIA
QUESTION:
A client, who has obtained
two appraisals of the same property, asks a third appraiser to
review both appraisals and reconcile them, giving the property a
single value. Can the third appraiser carry out the assignment under
USPAP guidelines?
MARTITIA:
Yes, this type of review assignment is acceptable under the Uniform
Standards of Professional Appraisal Practice. Under these
circumstances, it would be appropriate for the appraiser to include
the results of both reviews, as well as the appraiser’s opinion of
value within the same report
Martitia Mortimer, Elliott's
executive vice president, answers appraisal questions on a regular
basis in Elliott Evaluation News.
QUOTES
 “Choose
rather to punish your appetites than be punished by them.” –
Tyrius Maximus
“History is always written wrong, and so
always needs to be rewritten.” – George Santayana
“The first human being who hurled an insult instead of a stone was
the founder of civilization.”
– Sigmund Freud
“Under capitalism, man exploits man.
Under communism, it’s just the opposite.”
– John Kenneth Galbraith
“Doctors will have more
lives to answer for in the next world than even we as generals.”
– Napolean Bonaparte
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| Newsletter Editor:
kevin@elliottco.com
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3316-A Battleground Avenue
Greensboro, NC 27410 |
Toll Free 800-854-5889
Fax
336-854-7734 |
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