HotPads Daily :: The Official Blog of HotPads.com

Home Prices Take Biggest Plunge Since Cosby Show Era

And the pain keeps coming.

According to a report released today by S&P Case/Shiller, whose real estate pricing index covers 20 local markets and a national average, third-quarter home prices dropped 1.7 percent from the second quarter.

Yale economist and index co-founder Robert Shiller said that this represents the largest quarterly decline in the index's 21-year history and that the year-over-year decline posted its second consecutive record low at negative 4.5%.

To put this in perspective, this is the largest drop since:

1. Cheers, The Golden Girls and Dallas were on the (low def, bubble screen) tube
2. No Bush or Clinton had been President
3. HotPads' senior software engineer (and Food Leader) Doug Lewis was throwing peas against his parents' wall because they were not mashed using the proper Italian grinder

Miami Condo Bailout May Benefit Teachers and Cops

Falling real estate prices and a glut of condos in the Miami market is looking like a golden opportunity for an unlikely speculator, the city of Miami itself.  City Commissioner Marc Sarnoff is proposing that if prices continue to fall, government should buy condo units and partially subsidize them for teachers, police officers and other civil servants.

The city's Community Development Department says that new affordable housing units can cost up to $350 per square foot to build, while many condos are now $225 to $250 per square foot, with prices falling.

On the surface, this seems like a good idea.  The government can provide housing incentives to lure new workers, prop up the housing market and take advantage of existing inventory instead of building yet more homes.

To get a current idea of the prices and availability for condos in south Florida, check out the new for-sale listings online at HotPads.com.

Happy Turkey Day from HotPads!

Having just celebrated our second anniversary, HotPads has a lot to be grateful for this Thanksgiving.  Our soaring traffic (up 600% this year), mad props from the media community and new for-sale listings are only the tip of the whipped mashed potatoes.

We know that everything we've accomplished could not have been done without our friends and partners.  (Like the original Plymouth settlers, who needed help from the Native Americans in learning how to grow maize and beat rush-hour traffic to Fenway Park.)  So we're giving a special shout-out to:

• The real estate community, which allows HotPads to market hundreds of thousands of listings for apartments, rental houses and homes for sale
• Our advertisers, who make it possible for HotPads to be free to list and free to search
• Visitors to HotPads.com, who sing the praises of our site and how easy it makes the housing search process
• And last but not least, Dogfish Head 60 minute IPA.  (Star of the HotPads Friday Happy Hour)

We are especially thankful for our blog readers like you.  Now quit surfing the 'net and go spend some quality time with your friends and family!  We'll be back on Monday.

- Team HotPads

Real Estate Pros Becoming Net Entrepreneurs?

A recent survey of works in the real estate and financial services fields indicated that almost 30% have either started, or are thinking about starting, an Internet/IT related business.  Conducted by the social network PartnerUp, these survey results have some folks worried that droves of housing bubble refugees will swarm the fair shores of Web 2.0 and set up squalid camps rife with violence and disease.  ( Well, maybe first-person-shooter games and computer viruses.)

Although that number seems awfully high, this would be a good thing.  When things are going as well as they had been for real estate and mortgage pros, there was little incentive to innovate.  That allowed HotPads.com to enter the market with a better way to search for homes, apartments and rentals.  Maybe someone will come up with a new mortgage system or home improvement site.

For those who are thinking about investing their time or money in an Internet biz, check on Inc.com's take on bubbles (both real estate and Web 2.0) and learn more about the skills needed to survive.

Rent-to-Own Real Estate Makes a Comeback

Another twist in the continuing saga of the housing slump is the return of the rent-to-own deal. 

Rent-to-own (or lease-to-own as its sometimes called) typically involves renters paying an above-market monthly payment with a portion of the rent going towards the eventual down payment on the purchase of the home.  These deals fell out of favor when every home sold in 20 minutes and every borrower could qualify for a million dollar mortgage.

Rent-to-own agreements can give homeowners an opportunity to move without selling at the current depressed prices, and allow renters to save for a down payment while holding out for a more favorable lending climate down the road.  These deals can be a great arrangement for both owners and renters/future owners.

But Bankrate.com's Steve McLinden warns prospective tenant/buyers to enter into these arrangements with a clear understanding of the terms.  They can be left with a contract on a house they really don't want to buy, or fail to quality for a mortgage.  In either case, they can lose their downpayment money and be left with no home and no savings.

Happy Veterans Day

Today is Veterans Day and, during a time of war, it is especially important to take some time to acknowledge and appreciate all that the men and women in the armed forces have done for each and every one of us.  No matter where you stand on the political spectrum, everyone should understand the magnitude of the sacrifices that these men and women have made and are making for our country.  So to all the veterans and active soldiers: thank you.

The Soldier

It is the soldier, not the reporter,
who has given us freedom of the press.

It is the soldier, not the poet,
who has given us freedom of speech.

It is the soldier, not the campus organizer,
who has given us the freedom to demonstrate.

It is the soldier, not the lawyer,
who has given us the right to a fair trial.

It is the soldier,
who salutes the flag,
who serves under the flag,
and whose coffin is draped by the flag,
who allows the protester to burn the flag.

Father Dennis Edward O'Brien, USMC

Here is a link that allows you to send a postcard to soldiers currently fighting in Iraq and Afghanistan.  It just takes a few minutes and doesn't cost anything, but means a great deal to them to know you are supporting them: Let's Say Thanks

HotPads Launches For Sale Listings

HotPads.com went live two years ago this past Saturday.  To celebrate, we wanted to do something big.  So, today we launched into the For Sale market.  We are launching with over 200,000 real estate listings from our current real estate professional partners.

Over the past two years we have helped countless rental housing shoppers find their next home.  We are excited to now do the same thing for those that are looking to purchase a new home.

Just like rental housing, HotPads' For Sale listings are completely free and anyone can create them.  For those users with a lot of listings, you can have your webmaster create a listing data feed following these instructions:  Listing Data Feed Instructions . Or you could just send us an email at info@hotpads.com .

More information about HotPads launch into the For Sale market can be found in our press release .

I hope everyone has a chance to check out our For Sale listings.  Here are a few quick links to some of the largest markets:

New York City, Washington DC, San Francisco, San Jose, Phoenix, Chicago, Detroit, Miami, Seattle, and Dallas

Real Estate Brokerage in Mortgage Ethics Flap

A founder of the largest residential real estate brokerage in the Washington, DC area is under scrutiny over what some say was an unethical directive given to his brokers.

The Washington Post reported that the founder of Long & Foster, P. Wesley Foster, sent an email urging the company's thousands of agents to recommend its in-house mortgage lender and discontinue referring clients to outside banks.

Foster's encouragement of the use of Prosperity Mortgage (an affiliated company) over firms like Bank of America and SunTrust brought criticism from consumer activists, real estate agents and naturally, the other banks.  They fear that such a move would limit choice and come at the expense of Long & Foster's clients.

A copy of the email memo was sent to the Department of Housing and Urban Development, whose officials have not commented on it at this time.

Heating Prices Hit Homeowners Where it Hurts

Global warming can't come fast enough for some Americans as they reach that time of year when they head down to the basement and turn on the furnace for the first time.  But instead of toasty toes on cold nights, their thoughts are of energy bill en fuego.

Oil prices hit a record close yesterday, with $100 a barrel prices looming and fears of tight supply with the entire northern hemisphere heading into winter.  This does not bode well for homes heated by oil or natural gas.  Even electric bills won't be pretty as energy prices move in concert with each other.

Homeowners in Boston have the dubious distinction of paying the highest heating prices in the nation, according to Forbes' list of the most expensive places to heat a home.

But HotPads is here to help. The following online resources can help you save real cash on your home or rental apartment's heating bills.  Check out this guide from the EPA, these tips from the California Energy Commission and plans from eHow.com.

Couple Selling Home with Macabre Kick

Halloween may be over, but ghoulish tales of haunted houses persist.

A Pennsylvania couple, unable to sell their home for over a year, have come up with a strange incentive for prospective buyers.

Bob and Ricki Husick are offering to provide a full refund of the selling price... but only after they're dead.  They're asking $399,900 for the four-bedroom, three and a half bath home about 20 miles north of Pittsburgh.

But Freddy Krueger and Michael Myers shouldn't get their checkbooks out, since there is one catch.  According to Bob, there is a clause in the contract that no money will be paid to you until local authorities determine that they died of natural causes.