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Equity Rich U.S. Properties Increase To New High In 2018

Zoltán Tűndik

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Equity Rich Properties Represent 25.6 Percent of U.S. Properties; Share of Seriously Underwater Properties Drops to 8.8 Percent; Report Includes Home Equity Breakdown by Zip Code

ATTOM Data Solutions, curator of the nation’s premier property database, today released its Year-End 2018 U.S. Home Equity & Underwater Report, which shows that in the fourth quarter of 2018, over 14.5 million U.S. properties were equity rich — where the combined estimated amount of loans secured by the property was 50 percent or less of the property’s estimated market value — up by more than 834,000 from a year ago to a new high as far back as data is available, Q4 2013.

The 14.5 million equity rich properties in Q4 2018 represented 25.6 percent of all properties with a mortgage, down slightly from 25.7 percent in the previous quarter but up from 25.4 percent in Q4 2017.

The report also shows more than 5 million U.S. properties were seriously underwater — where the combined estimated balance of loans secured by the property was at least 25 percent higher than the property’s estimated market value, representing 8.8 percent of all U.S. properties with a mortgage. That 8.8 percent share of seriously underwater homes remained unchanged from the previous quarter and down from 9.3 percent in Q4 2017.

“With homeowners staying put longer, homeownership equity will most likely continue to strengthen. Those that are seriously underwater may find themselves coming up for air as they continue to pay off excessive legacy mortgages or sell,” said Todd Teta, chief product officer with ATTOM Data Solutions. “This report helps to showcase a story of the West coast markets having the highest share of equity rich homeowners versus the South and Midwest markets, who continue to have stubbornly high rates of seriously underwater homeowners.”

Historical U.S. Underwater & Equity Rich Trends
Qtr-Yr U.S. Properties
Seriously
Underwater
%
Seriously
Underwater
U.S.
Properties
Equity Rich
%
Equity
Rich
Q1 2012 12,533,155 27.8%
Q2 2012 12,824,279 28.6%
Q3 2012 12,472,262 27.6%
Q1 2013 10,894,743 25.8%
Q2 2013 11,336,033 25.7%
Q3 2013 10,714,924 23.2%
Q4 2013 9,274,126 18.8% 9,097,325 18.5%
Q1 2014 9,065,741 17.5% 9,935,939 19.1%
Q2 2014 9,074,449 17.2% 9,945,646 18.9%
Q3 2014 8,135,648 15.0% 10,812,968 20.1%
Q4 2014 7,052,570 12.7% 11,249,646 20.3%
Q1 2015 7,341,922 13.2% 11,053,055 19.8%
Q2 2015 7,443,580 13.3% 10,963,041 19.6%
Q3 2015 6,917,673 12.7% 10,476,259 19.2%
Q4 2015 6,436,381 11.5% 12,621,274 22.5%
Q1 2016 6,703,857 12.0% 12,335,651 22.0%
Q2 2016 6,666,622 11.9% 12,383,345 22.1%
Q3 2016 6,063,326 10.8% 13,125,367 23.4%
Q4 2016 5,408,323 9.6% 13,877,315 24.6%
Q1 2017 5,497,771 9.7% 13,718,473 24.3%
Q2 2017 5,433,684 9.5% 14,038,372 24.6%
Q3 2017 4,628,408 8.7% 14,030,394 26.4%
Q4 2017 5,032,185 9.3% 13,731,767 25.4%
Q1 2018 5,206,446 9.5% 13,841,082 25.3%
Q2 2018 5,181,467 9.3% 13,907,758 24.9%
Q3 2018 4,940,724 8.8% 14,464,379 25.7%
Q4 2018 5,001,482 8.8% 14,566,363 25.6%

Highest seriously underwater share in Louisiana, Mississippi, Arkansas, Illinois, Iowa
States with the highest share of mortgages that were seriously underwater included; Louisiana (20.8 percent); Mississippi (16.9 percent); Arkansas (15.9 percent); Illinois (15.6 percent); and Iowa (15.2 percent).

Among 98 metropolitan statistical areas analyzed in the report, those with the highest share of mortgages that were seriously underwater included; Baton Rouge, Louisiana (20.7 percent); Youngstown, Ohio (19.0 percent); New Orleans, Louisiana (19.0 percent); Toledo, Ohio (18.0 percent); and Scranton, Pennsylvania (17.7 percent).

27 zip codes where more than half of all properties are seriously underwater
Among 7,590 U.S. zip codes with at least 2,500 properties with mortgages, there were 27 zip codes where more than half of all properties with a mortgage were seriously underwater, including zip codes in the Chicago, Cleveland, Saint Louis, Atlantic City, Detroit and Virginia Beach metropolitan statistical areas.

The top five zip codes with the highest share of seriously underwater properties were 08611 in Trenton, New Jersey (70.3 percent seriously underwater); 63137 in Saint Louis, Missouri (64.8 percent); 60426 in Harvey, Illinois (62.3 percent); 38106 in Memphis, Tennessee (60.5 percent); and 61104 in Rockford, Illinois (59.6 percent).

Q4 2018 Underwater Properties Heat Map by ZIP

Highest equity rich share in California, Hawaii, New York, Washington, Oregon
States with the highest share of equity rich properties were California (43.6 percent); Hawaii (39.3 percent); New York(34.2 percent); Washington (34.2 percent); and Oregon (32.9 percent).

Among 98 metropolitan statistical areas analyzed in the report, those with the highest share of equity rich properties were San Jose, California (72.0 percent); San Francisco, California (60.7 percent); Los Angeles, California (48.5 percent); Honolulu, Hawaii (40.2 percent); and Oxnard, California (39.2 percent).

7 Out of the top 10 equity rich counties resided in California
Among the 1,479 counties with at least 2,500 properties with mortgages, those top 10 counties with the highest percent of equity rich properties resided mainly in California counties.

The top five counties with the highest share of equity rich properties were San Mateo, California (75.9 percent); Santa Clara, California (73.0 percent); San Francisco, California (71.4 percent); Pasquotank, North Carolina (65.7 percent); and Alameda, California (62.7 percent).

427 zip codes where more than half of all properties are equity rich
Among 7,590 U.S. zip codes with at least 2,500 properties with mortgages, there were 427 zip codes where more than half of all properties with a mortgage were equity rich.

The top five zip codes with the highest share of equity rich properties were all in the California Bay area: 94116 in San Francisco (85.0 percent); 94087 in Sunnyvale (84.6 percent equity rich); 94040 in Mountain View (83.5 percent equity rich); 94043 in Mountain View (83.0 percent equity rich); and 95051 in Santa Clara (82.7 percent equity rich).

Q4 2018 Equity Rich Properties Heat Map by ZIP

Report methodology
The ATTOM Data Solutions U.S. Home Equity & Underwater report provides counts of properties based on several categories of equity — or loan to value (LTV) — at the state, metro, county and zip code level, along with the percentage of total properties with a mortgage that each equity category represents. The equity/LTV is calculated based on record-level loan model estimating position and amount of loans secured by a property and a record-level automated valuation model (AVM) derived from publicly recorded mortgage and deed of trust data collected and licensed by ATTOM Data Solutions nationwide for more than 155 million U.S. properties.

Definitions
Seriously underwater: Loan to value ratio of 125 percent or above, meaning the property owner owed at least 25 percent more than the estimated market value of the property.

Equity rich: Loan to value ratio of 50 percent or lower, meaning the property owner had at least 50 percent equity.

SOURCE ATTOM Data Solutions

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Commercial Real Estate

Greece Sotheby’s Announces Significant Growth for International Realty in 2018

Vlad Poptamas

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Sunset in White Vista, Kastro, Mykonos
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Sotheby’s International Realty Affiliates LLC announced the highest annual return in history in 2018, with its partners reaching a total sales volume exceeding over 112 billion dollars. Greece Sotheby’s experienced one of the highest growth rates worldwide, greatly consolidating its leading position in the local market.

Mr. Savvas Savvaidis, President and Managing Director of Greece Sotheby’s International Realty, gave a concise report about the results for Greece following the publication of the financial results for the year 2018:

“Having completed a year which was characterised by tough and targeted work, we are pleased to announce that Greece Sotheby’s International Realty tripled its sales volume in 2018 compared to the previous year, effectively reinforcing its leading position in the luxury real estate market in Greece. Within just 24 months of operation, we have achieved the highest recorded sales by a company in Paxos, Naxos and Ios, while over the past 6 months we have completed the highest volume of residential agreements in Mykonos. At the same time, we have also seen a significant increase in Rhodes and Corfu as a result of the international marketing strategy we have pursued. The outstanding results, both locally and globally, are sound confirmation of a business culture which recognizes that the clients’ interests are our most valuable asset. By capitalizing on the strength of our name, building a strong talent pool, working with experienced professionals, and continuing to choose the best property in the country, we are heading towards an exciting and ambitious 2019.”

Sotheby’s International Realty continued to grow in major European markets during the financial year 2018, such as SpainGermanyAustriaSlovakia and Switzerland. At the same time, 2018 saw the sale of its rights in Cyprus. In Asia, new offices were inaugurated in Sri Lanka and Thailand, while expansion agreements were signed in IndonesiaVietnamand the Maldives.

“Experts predicted that 2018 would be a year in which the global real estate market would move sluggishly,” said Philip White, Sotheby’s International Realty Affiliates LLC’s Chairman and Chief Executive Officer. “Despite all of the forecasts, our highly trained companies and affiliate vendors have continued to make the most of their potential, achieving a truly remarkable annual increase in sales. We plan to continue with the same fortitude in 2019 and reinforce Sotheby’s International Realty’s network by offering innovative products, tools and research that will enable a top-level service in our sector. ”

SOURCE Greece Sotheby’s International Realty

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Blockchain

Purchasing Property in Turkey With Cryptocurrency Now Possible With Antalya Homes

Vlad Poptamas

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Purchasing Property in Turkey With Bitcoin
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Despite the loss in the value of many digital currencies and particularly Bitcoin in the past year, data from Statista indicates that the number of cryptocurrency wallet owners has increased 32% and reached 31 million by the end of 2018. Widely used in many industries including automotive, travel and informatics, cryptocurrency has also become widespread in the real estate sector.

Leading companies in the world such as Microsoft, Virgin Atlantic and Shopify now allow users to make payments in cryptocurrencies for their products and services. The real estate sector has also experienced an increase in the use of digital currencies and it is now possible to buy houses with cryptocurrency in Turkey, a home for many foreign investors.

With a total market value of 140 billion dollars, cryptocurrency is actively used in travel, food, information technologies, automotive as well as real estate sectors. As one of the most attractive European countries for housing investment where 40 thousand properties has been sold to foreigners in 2018, Turkey uses not only Bitcoin (BTC) but also Ripple (XRP), Ethereum (ETH), Bitcoin Cash (BCH), Bitcoin Gold (BTG), Litecoin (LTC), Tether (USDT) and Stellar (XLM) for house sale transactions. Antalya Homes, the leading international real estate agency, which has helped thousands of foreigners obtain a home in Turkey to date, adopted an innovative approach selling nine houses in 2018 using Bitcoin (BTC).

Purchasing property with cryptocurrency offers more advantages

The leading real estate  agency  in Turkey, Antalya Homes is one of the organizations in the sector that accepts cryptocurrencies. Stating that they have completed sales of 9 real estates in 2018 using Bitcoin (BTC)Bayram Tekce, Chairman of Antalya Homes said, “Payment with cryptocurrency enables a more reliable and faster transaction performance such as money transfer between bank accounts without any exchange loss. It is very profitable to purchase real estate for those who want to utilize their cryptocurrency investments in the real estate sector. By making investments particularly in countries like Turkey, where housing is becoming increasingly valuable, investors can shift their investment to a less risky and safer area, and multiply their savings. We created a special section named “Pay with Bitcoin on Antalya Homes website for all questions related to purchasing houses with cryptocurrency. For those who intend to purchase a home with cryptocurrency, Antalya Homes offers the opportunity to own a house in Turkey starting from 30 thousand Euros (9 BTC).”

SOURCE Antalya Homes

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Accounting News & Issues

Silicon Valley Investment Club Hosts World Class Capital Gains Tax-Deferral Panel

Vlad Poptamas

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The Bay Area Commercial & Multifamily (BACOMM) Investment Club is organizing STOP OVERPAYING ON TAXES: Discover Surprising Ways to Keep your Wealth, at the Trianon Theatre in Downtown San Jose on Thursday, February 28 from 6 - 9 PM.
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he Bay Area Commercial & Multifamily (BACOMM) Investment Club is organizing STOP OVERPAYING ON TAXES: Discover Surprising Ways to Keep your Wealth, at the Trianon Theatre in Downtown San Jose on Thursday, February 28 from 6 – 9 PM.

Right now, we are at the peak end of the longest economic expansion in our nation’s history, and many investors are looking to sell off highly appreciated assets to re-invest, or just to hold on to cash. The problem is that capital gains taxes can eat up to 50% of hard earned gains, and many investors do not know that they have options, so they are not selling their primary residences, investment properties, stocks, and businesses.

This flagship community event brings together three experts who represent a wide range of capital gains deferral strategies, including 1031 exchange, Delaware Statutory Trust, Deferred Sales Trust, Monetized Installment Sale, Conservation Easements, Opportunity Zones and much more. Some of these strategies even allow investors to legally defer gains from the sale of one asset to non-like kind assets.

Event tickets are only $40. To learn more about the event, or how you can promote your business, please visit  bit.ly/BACOMM2019.

Bay Area Commercial & Multifamily (BACOMM) is a real estate investment club that caters to investors of all experience levels looking to advance from rental homes and move up to the big leagues of commercial and multifamily real estate investing. Members will also have the opportunity to invest passively in institutional grade investments for as little as $50k.

 

SOURCE Bay Area Commercial & Multifamily

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