US investment giant Morgan Stanley is looking towards the UK’s hot housing market to expand its customer base. Targeting first-time homebuyers priced out of the rapidly appreciating market, Morgan Stanley is offering mortgage products designed to allow prospective homeowners to borrow more than currently allowed through traditional UK mortgages.

A spokesman for Morgan Stanley said the launch was part of its efforts to build up the UK residential loans business by expanding from its role as securitiser and underwriter of residential loan portfolios to become an actual mortgage lender.

“If you’re a securitiser of residential mortgage loans, you are one or two steps removed from the underlying lending,” said Brent Williams, an executive director at Morgan Stanley. “The mortgage platform that we are building puts us in the flow from start to finish.”

Read the whole article here (Shanghai Daily).

With the supply of condos increasing exponentially in the past year, now looks like a very good time to buy a condo. Selling one, however, is a bit more difficult in some markets. The supply of exisiting condos rose by about two-thirds last year, while sales fell off slightly, and investors, once the fuel that fed the condo mania fire of the past five years, are now giving the cold shoulder to the market.

But the news isn’t a reason for condo sellers to panic, at least not in most markets. Those in the Midwest, where prices remained stable through the boom, are in fine shape. But in markets such as Miami, where condos continue to be built at breakneck speed, sellers will have to do a little fancy footwork to make their unit stand out.

If you’re selling a condo, above all, price it right. Real estate agents in condo-crazed cities such as Boston, Miami and Phoenix agree that much of the slowdown is at the high end of the market and that more affordable units are selling well. Whatever the price point, it’s not smart to be selling the most expensive apartment on the block, says Boston agent Ken Tutunjian. And with so many opportunities for buyers, you need to make your unit stand out over the competition, says Phoenix agent Brad Brauer. Clean your condo, remove clutter and stage it perfectly.

Finally, get the deal done. “Don’t hold out for a slightly better offer,” says Ron Witten of Dallas, a housing-market consultant.
http://realestate.msn.com/buying/Articlekip.aspx?cp-documentid=710370 (MSN).

Althought the housing market has softened only slightly so far, the old rules that governed the market during the boomtimes no longer seem to apply. Bidding wars are becoming a thing of the past in many markets, and sellers are no able to name their prices and expect buyers to fall in line. There are new rules to follow now, and sellers (and buyers) hoping to do well in this new era need to learn them in order to buy or sell at the best price.

No matter what your situation, housing experts say that almost everyone needs to dial back expectations for appreciation in the future. Most say real estate should remain the solid investment it has been over the past 30 years, with values rising just a bit above inflation–hardly the get-rich-quick formula many have recently followed.

“We’re entering a period where people need to follow the sort of old-fashioned rules their grandparents lived by,” says Christopher Cagan, research director at information provider First American Real Estate Solutions. “Buy a house when you plan to settle down for a while, and don’t think of it so much as a financial investment as a place to invest in your life.”

Read the whole article here (US News).

Los Angeles residents will soon be able to vote on a new initiative that could supply affordable housing to thousands of lower and middle income families. But the bill might be a tough sell to area homeowners who would foot much of the bill in the form of increased property taxes.

The bond issue up for vote in November is believed to be the largest one of its kind ever pursued by a municipality. It would provide about $1 billion in incentives to developers to create a home-loan program for workers priced out of the city’s housing market.

In addition to its size, the bond represents a shift in approach. In the past, affordable housing was largely the domain of the federal government and mainly restricted to the poorest residents. But as federal dollars have grown more scarce, the burden has fallen upon cities and counties, which are increasingly aiming to help the middle class as well.

Read the whole article here (LA Times - reg required).

When you finally find your dream home, is it better to do what some real estate agents recommend and feign disinterest, or to express your enthusiasm for the seller’s property? Although the former strategy may seem like a good strategy, it could actually work against you in the end, according to this article.

Since sellers are often as emotionally attached to a property as you wish to be, it can be far better to communicate both your desire for the house and intention to pay more than your initial offer upfront.

Expressing interest lets sellers know you’re serious. Your enthusiasm can put you in good stead with the sellers. This doesn’t mean that you have to reveal the highest price you’re willing to pay, or the terms on which you’ll buy the property.

Others back off because they don’t want anyone else to know what’s on their mind. They feel that by tipping their hat, they will in some way diminish their negotiating posture. This isn’t necessarily so.

Read the whole article here (Mortgage 101).

It’s an awfully good time to be a homebuyer in many parts of the US. Not only are they getting their pick of properties at a good price, they are also getting freebies such as vacations, cars, and pools thrown in as incentives. And in formerly red-hot markets such as New York, they may even get to rub elbows with a Hollywood celebrity just for looking at a property.

A bevy of builders in New York City are paying top dollar to entertainers just to show up for viewings, according to Diane Saatchi, senior vice president with the Corcoran Group, a residential real estate firm in New York.

“Put it this way: If George Clooney was served up instead of a free lunch, attendance would skyrocket,” said Saatchi.

Read the whole article here (Yahoo News).

Despite a slowdown in Florida condo sales and unpredictable construction cost increases, developers are still optimistic about the future of the real estate market and continue to forge ahead with their planned developments. One project - The Monarch in Orlando - is slated to begin construction in September. Despite its large size and cost, the development company in charge of the project is optimistic about its prospects

During the frenzied real estate market of recent years, 29 condo towers with a combined 7,000 to 8,000 units have been announced for locations in downtown Orlando. Most of the projects have been postponed, however, because of the softening market and because of fast-rising construction costs.

Read the whole article here (Orlando Sentinel).

If you’re like the average affluent homeowner, you spend about $4,000 a year on home repairs - mostly emergency ones done with no research and with no choice. But it doesn’t have to be that way. Money Magazine shows you how you can solve the majority of problems before they happen, letting you escape the costly repairs that can come with the territory of homeownership.

You can save big on repair costs by detecting a problem before it becomes an emergency. “It comes down to being proactive,” says Chris Seman, director of operations for Mr. Handyman. “Your house is like your car. When you first hear the noise, the repair will be less expensive than when it becomes a massive shriek.”

Don’t want to do it yourself? Hire a handyman to do a walk-through; this relatively new service runs from $100 to $500. But your seasonal savings could exceed that.

Read the whole article here (Money Magazine).

The real estate industry in Australia is celebrating this month - the market has returned to boom time conditions as median home prices returned to their high 2003 levels. But the surge isn’t affecting all properties equally - the median home price is being pushed up by record executive bonuses financing expensive properties. But for the average borrower, there’s a different tale to tell. Like the US, Australia is also experiencing rising interest rates and fuel prices which are are putting a brake on the market.

Mr Eslake said he expected Melbourne’s real estate market to remain relatively subdued overall. Except perhaps in the inner-east.

REIV figures show that the number of $1 million-plus sales across Melbourne is up 26 per cent on a year ago. Mr Bongiorno said more expatriates were buying houses, while Asian buyers were also returning.

Read the whole article here (The Age).

At first glance the numbers are shocking - a 104% jump in California’s foreclosure rate? A national increase of 25% from the second quarter of 2005? Does this mean that the housing market is in for a rough ride in the coming year? While the news certainly isn’t positive, it’s also nothing to be alarmed about, especially since the numbers reflect starts in the foreclosure process, and do not always end in actual foreclosures.

The study showed that one of every 425 homes in the United States was in some part of the foreclosure process. At least in California, though, a strong housing market has kept most of them from going all the way to a foreclosure sale.

‘‘Demand is still very strong,'’ said Bill Velto, manager of Tarbell Realtors in Upland. ‘‘If anyone is in foreclosure, they should get in touch with a real estate professional and see what can be done.'’

Read the whole article here (Daily Bulletin).