Check out this interactive map from the CMLS. Shading on this map shows how average 2008 home prices compared to 2003 levels in 70 Charlotte-area ZIP codes. The price and sales information is from Carolina Multiple Listing Services, Inc. In more than a third of the ZIPs, home prices hit a six-year high in 2008, although closings were sharply down.
http://www.charlotteobserver.com/661/story/501993.html
Tuesday, February 24, 2009
Tips for Holding a Great Yard Sale!
Use a yard sale to reduce the clutter inyour home and get rid of items you don’twant to move.Check with your city government to see ifyou need a permit or license.
1. See if other neighbors want toparticipate and have a “block” sale toattract more visitors.
2. Put an ad in free classified papers, putup signs and balloons at majorintersections and in stores near yourhome.
3. Price items ahead and attach priceswith removable stickers. Remember,yard sales are supposed to bebargains, so don’t try to sell anythingof significant value this way.
4. Check items before the sale to be sureyou haven’t including something youwant by mistake.
5. Keep pets away from the sale.
6. Display everything neatly andindividually so customers don’t have todig through boxes.
7. Have an electrical outlet so buyers cantest appliances.
8. Have plenty of bags and newspaperfor wrapping fragile items.
9. Get enough change, and keep a closeeye on your cash.
1. See if other neighbors want toparticipate and have a “block” sale toattract more visitors.
2. Put an ad in free classified papers, putup signs and balloons at majorintersections and in stores near yourhome.
3. Price items ahead and attach priceswith removable stickers. Remember,yard sales are supposed to bebargains, so don’t try to sell anythingof significant value this way.
4. Check items before the sale to be sureyou haven’t including something youwant by mistake.
5. Keep pets away from the sale.
6. Display everything neatly andindividually so customers don’t have todig through boxes.
7. Have an electrical outlet so buyers cantest appliances.
8. Have plenty of bags and newspaperfor wrapping fragile items.
9. Get enough change, and keep a closeeye on your cash.
Housing affordability surges at year-end 2008
Nationwide housing affordability surged at year-end 2008 to its highest level in at least five years, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI). The HOI indicated that 62.4 percent of all new and existing homes that were sold in the final quarter of 2008 were affordable to families earning the national median income of $61,500, up considerably from the 56.1 percent of homes that were affordable to such families in the previous quarter and the 46.6 percent of homes that were affordable to them at the end of 2007.
Monday, February 23, 2009
Weichert Open House Traffic is Up!
Weichert Open House traffic has been up this month as more people realize now is the time to buy. That is great news for all of us.
According to the National Association of Realtors, nearly half of all buyers visit an Open House during their home search, and a majority of them rate Open Houses as a useful information source. But, what if they can't find your Open House?
Putting out at least eight directional signs should increase Open House traffic fourfold. If there are long stretches of road with no turns, place extra signs so visitors know to keep going and are assured periodically that they haven't missed the house. And, keep in mind that buyers will be taking many different routes to get to the Open House, so you should place signs from all directions, not just along the route you take to get there.
All signs point to success,
Jim Weichert
According to the National Association of Realtors, nearly half of all buyers visit an Open House during their home search, and a majority of them rate Open Houses as a useful information source. But, what if they can't find your Open House?
Putting out at least eight directional signs should increase Open House traffic fourfold. If there are long stretches of road with no turns, place extra signs so visitors know to keep going and are assured periodically that they haven't missed the house. And, keep in mind that buyers will be taking many different routes to get to the Open House, so you should place signs from all directions, not just along the route you take to get there.
All signs point to success,
Jim Weichert
NC Real Estate Contract Updates are now available!
Contact your Weichert agent today to find out about the changes made to the NC Real Estate Contracts, Forms and Addendums.
Buyers love a good kitchen!
The kitchen has always been the focal point of a home's living area, and one of the first features buyers look at during their home search. As many people cut back on expenses by eating out less and cooking at home more, having a functional kitchen has become even more important than ever.
If you are thinking of remodeling your kitchen, take the current economic climate into account when making your choices. Last month, builders and designers gathered for the International Builders' Show and discussed the following trends for kitchens:
* Pick a layout that makes it easier for two people to be working in the kitchen at the same time, such as putting the oven under the counter to one side of the cooktop.
* Install multiple refrigerators to accommodate extra groceries. Good options include under-the-counter and island models as well as refrigerator drawers.
* Achieve a calm environment by choosing appliances that run quietly and using calming colors such as green and blue.
* Making the kitchen more inviting doesn't have to cost a lot. Use expensive tile only as a backsplash or accent, or splurge on designer hardware.
More kitchen design ideas can be found at the National Kitchen and Bath Association Web site at www.nkba.org.
If you are thinking of remodeling your kitchen, take the current economic climate into account when making your choices. Last month, builders and designers gathered for the International Builders' Show and discussed the following trends for kitchens:
* Pick a layout that makes it easier for two people to be working in the kitchen at the same time, such as putting the oven under the counter to one side of the cooktop.
* Install multiple refrigerators to accommodate extra groceries. Good options include under-the-counter and island models as well as refrigerator drawers.
* Achieve a calm environment by choosing appliances that run quietly and using calming colors such as green and blue.
* Making the kitchen more inviting doesn't have to cost a lot. Use expensive tile only as a backsplash or accent, or splurge on designer hardware.
More kitchen design ideas can be found at the National Kitchen and Bath Association Web site at www.nkba.org.
Concord requests "shovel ready" project money
Approval of a resolution requesting Federal stimulus money for specified shovel ready water and wastewater projects.
City Council adopted a resolution to request State grant assistance for water and wastewater projects. In response to the anticipated national economic recovery funding, the Department of Environment and Natural Resources (DENR) is accepting supplemental applications for projects that are or can be shovel ready within approximately 6 months of federal enactment of the bill. The Department has not yet described the final details of the procedures that will be followed, but it is clear that if a project is not on the State's priority list then it will not be eligible for any stimulus money.
City Council adopted a resolution to request State grant assistance for water and wastewater projects. In response to the anticipated national economic recovery funding, the Department of Environment and Natural Resources (DENR) is accepting supplemental applications for projects that are or can be shovel ready within approximately 6 months of federal enactment of the bill. The Department has not yet described the final details of the procedures that will be followed, but it is clear that if a project is not on the State's priority list then it will not be eligible for any stimulus money.
Concord band sex offenders from Parks and Rec!
Looks like our neighborhoods just got a little bit safer!
Ordinance banning registered sex offenders from recreation properties.
City Council adopted an ordinance amending Chapter 42 of the Concord City Code to ban registered sex offenders from all city parks and recreation facilities, except when they are used for public meetings or voting.
Ordinance banning registered sex offenders from recreation properties.
City Council adopted an ordinance amending Chapter 42 of the Concord City Code to ban registered sex offenders from all city parks and recreation facilities, except when they are used for public meetings or voting.
Improvements to I-85 and Speedway Blvd.
Speedway Area Transportation Update
February, 2009
Concord and Cabarrus County continue to receive comments regarding congestion in the Speedway/Concord Mills area, particularly south of the I-85 Exit 49 interchange near the Weddington Road/Bruton Smith Boulevard intersection. As the same time, there has been confusion about negotiations with Speedway Motorsports, Inc. because some of these same improvements were part of the discussions related to the construction of the ZMAX Dragway. The following is an information update on the transportation projects impacting the access to this area.
* No funds have been allocated, distributed, spent or authorized to be paid to Speedway Motorsports Incorporated for any Speedway related projects. In fact, after the 2008 property tax revaluation in Cabarrus County, the Concord City Council lowered the Concord tax rate from 44.75 cents per $100 in valuation to 42 cents per $100 in valuation.
* I-85, Bruton Smith Boulevard and Concord Mills Boulevard are all maintained by the North Carolina Department of Transportation, so improvements to these roads must be made in conjunction with NCDOT staff and any changes must meet their specifications.
* Through the efforts of the Cabarrus/Rowan Metropolitan Planning Organization, NCDOT may receive approximately $6.4 million for the widening of the section of I-85 from Concord Mills Blvd. to exit 58 (Highway 73 interchange) as a special earmark through the new Federal Transportation Bill. Design of this project was scheduled to begin this February with construction to begin in August of 2011. It is expected to take two years to complete project.* City staff is also discussing an Intersection Spot Safety Project on Bruton Smith Blvd. at Gateway Lane, NW with NCDOT staff. Staff also continues to explore other changes at the Weddington Road intersection to seek NCDOT assistance in making improvements.
* Another area of concern due to existing congestion and for economic development purposes is the need for the extension of George Liles Parkway, at least from Weddington to Concord Parkway (US 29). This is part of the larger Westside Bypass project, which has been part of NCDOT transportation plans for decades. The phase of the NCDOT project containing this segment is not scheduled to begin construction until at least 2013.* The City of Concord has discussed up-fronting the money for this extension of George Liles Parkway to allow NCDOT to begin construction earlier. NCDOT would then reimburse the City under the original financing schedule outlined in the State Transportation Improvement Plan. A new project schedule has been discussed with NCDOT staff, but has not been finalized or approved by the Board of Transportation. The State will also make sure that the realignment of Bruton Smith Boulevard meets State specifications as it will remain a NCDOT maintained street.
* Discussions continue regarding Speedway Motorsports involvement in making improvements to Bruton Smith Boulevard due to these existing needs and other safety and congestion issues. If such a partnership develops, it will stipulate that a new funding mechanism will be needed other than existing property tax revenues.
Source: City of Concord
February, 2009
Concord and Cabarrus County continue to receive comments regarding congestion in the Speedway/Concord Mills area, particularly south of the I-85 Exit 49 interchange near the Weddington Road/Bruton Smith Boulevard intersection. As the same time, there has been confusion about negotiations with Speedway Motorsports, Inc. because some of these same improvements were part of the discussions related to the construction of the ZMAX Dragway. The following is an information update on the transportation projects impacting the access to this area.
* No funds have been allocated, distributed, spent or authorized to be paid to Speedway Motorsports Incorporated for any Speedway related projects. In fact, after the 2008 property tax revaluation in Cabarrus County, the Concord City Council lowered the Concord tax rate from 44.75 cents per $100 in valuation to 42 cents per $100 in valuation.
* I-85, Bruton Smith Boulevard and Concord Mills Boulevard are all maintained by the North Carolina Department of Transportation, so improvements to these roads must be made in conjunction with NCDOT staff and any changes must meet their specifications.
* Through the efforts of the Cabarrus/Rowan Metropolitan Planning Organization, NCDOT may receive approximately $6.4 million for the widening of the section of I-85 from Concord Mills Blvd. to exit 58 (Highway 73 interchange) as a special earmark through the new Federal Transportation Bill. Design of this project was scheduled to begin this February with construction to begin in August of 2011. It is expected to take two years to complete project.* City staff is also discussing an Intersection Spot Safety Project on Bruton Smith Blvd. at Gateway Lane, NW with NCDOT staff. Staff also continues to explore other changes at the Weddington Road intersection to seek NCDOT assistance in making improvements.
* Another area of concern due to existing congestion and for economic development purposes is the need for the extension of George Liles Parkway, at least from Weddington to Concord Parkway (US 29). This is part of the larger Westside Bypass project, which has been part of NCDOT transportation plans for decades. The phase of the NCDOT project containing this segment is not scheduled to begin construction until at least 2013.* The City of Concord has discussed up-fronting the money for this extension of George Liles Parkway to allow NCDOT to begin construction earlier. NCDOT would then reimburse the City under the original financing schedule outlined in the State Transportation Improvement Plan. A new project schedule has been discussed with NCDOT staff, but has not been finalized or approved by the Board of Transportation. The State will also make sure that the realignment of Bruton Smith Boulevard meets State specifications as it will remain a NCDOT maintained street.
* Discussions continue regarding Speedway Motorsports involvement in making improvements to Bruton Smith Boulevard due to these existing needs and other safety and congestion issues. If such a partnership develops, it will stipulate that a new funding mechanism will be needed other than existing property tax revenues.
Source: City of Concord
FANNIE MAE CHANGES RULES FOR INVESTORS
"Fannie Mae is committed to providing financing opportunities for high-credit quality, bona fide investors. Experienced investors play a key role in the housing recovery."
The use of the phrases "high-credit quality," "bona fide" and "experienced" was a conscious one, by the way. Fannie Mae is averse to first-time investors and other foreclosure opportunists. Instead, it wants to serve individuals with a history of owning and successfully managing rental property
To that end, Fannie Mae will now finance the purchases of one-unit homes for investors with an interest in between 5-10 properties, provided that all of the following guidelines are met:
• 25 percent down payment on the investment property;
• Minimum credit score of 720;
• No mortgage payments late within the last 12 months;
• No bankruptcies or foreclosures in the last seven years;
• Two years of tax returns showing rental income from all rental properties;
• Six months of principal, interest, taxes and insurance reserves on each of the financed properties.
And lastly, to reduce fraud, Fannie Mae will now require all real estate investors to sign a form granting lenders permission to verify supplied tax returns against the official, IRS-filed version. This document is less commonly known as a 4506-T. But lest we think this guideline change is Fannie Mae's olive branch to the people, let's remember that our nation's banks are holding record numbers of foreclosed homes on their balance sheets right now while the most likely buyers of those homes have been to-date locked out from financing.
Real estate investors want to buy REO, but Fannie Mae had made it impossible. The guideline change is meant to extend banks and lenders a lifeline first; bringing experienced investors back into the fold is just how it's getting done.
That said, real estate investors are lovin' it.
For the first time since September, investors can go to auction and know that (relatively) cheap financing will be available from the government. This should speed the reduction of REO inventory nationwide. In addition, with more investors eligible for financing, expect greater competition for prime foreclosed properties, helping to keep home prices from falling into the abyss.
The rollback gives a secondary benefit to investors, too -- even those not buying additional property.
See, when the four-property restriction went into effect it was a surprise, 11th-hour announcement made on the Friday before Fannie Mae's nationalization. This date, meanwhile, has come to be known as the day before the refi boom started.
So, on the following Monday, when mortgage rates instantly plunged three-quarters of a percent, homeowners with five properties or more found themselves ineligible.
They couldn't refinance their investment homes; they couldn't refinance their vacation homes; and they often couldn't refinance their primary homes, either. While rates fell for nearly every borrower class, experienced real estate investors were locked out. Today, that's no longer the case. "High-credit quality, bona fide" real estate investors are back in the game.
It's good for them; it's good for the banks; and it's good for housing.
Not every bank sells loans to Fannie Mae, however, so if you think the new guidelines will impact your mortgage plans, be sure to check with your loan officer first.
Originally posted at The Mortgage Reports blog, Copyright (c) Dan Green
The use of the phrases "high-credit quality," "bona fide" and "experienced" was a conscious one, by the way. Fannie Mae is averse to first-time investors and other foreclosure opportunists. Instead, it wants to serve individuals with a history of owning and successfully managing rental property
To that end, Fannie Mae will now finance the purchases of one-unit homes for investors with an interest in between 5-10 properties, provided that all of the following guidelines are met:
• 25 percent down payment on the investment property;
• Minimum credit score of 720;
• No mortgage payments late within the last 12 months;
• No bankruptcies or foreclosures in the last seven years;
• Two years of tax returns showing rental income from all rental properties;
• Six months of principal, interest, taxes and insurance reserves on each of the financed properties.
And lastly, to reduce fraud, Fannie Mae will now require all real estate investors to sign a form granting lenders permission to verify supplied tax returns against the official, IRS-filed version. This document is less commonly known as a 4506-T. But lest we think this guideline change is Fannie Mae's olive branch to the people, let's remember that our nation's banks are holding record numbers of foreclosed homes on their balance sheets right now while the most likely buyers of those homes have been to-date locked out from financing.
Real estate investors want to buy REO, but Fannie Mae had made it impossible. The guideline change is meant to extend banks and lenders a lifeline first; bringing experienced investors back into the fold is just how it's getting done.
That said, real estate investors are lovin' it.
For the first time since September, investors can go to auction and know that (relatively) cheap financing will be available from the government. This should speed the reduction of REO inventory nationwide. In addition, with more investors eligible for financing, expect greater competition for prime foreclosed properties, helping to keep home prices from falling into the abyss.
The rollback gives a secondary benefit to investors, too -- even those not buying additional property.
See, when the four-property restriction went into effect it was a surprise, 11th-hour announcement made on the Friday before Fannie Mae's nationalization. This date, meanwhile, has come to be known as the day before the refi boom started.
So, on the following Monday, when mortgage rates instantly plunged three-quarters of a percent, homeowners with five properties or more found themselves ineligible.
They couldn't refinance their investment homes; they couldn't refinance their vacation homes; and they often couldn't refinance their primary homes, either. While rates fell for nearly every borrower class, experienced real estate investors were locked out. Today, that's no longer the case. "High-credit quality, bona fide" real estate investors are back in the game.
It's good for them; it's good for the banks; and it's good for housing.
Not every bank sells loans to Fannie Mae, however, so if you think the new guidelines will impact your mortgage plans, be sure to check with your loan officer first.
Originally posted at The Mortgage Reports blog, Copyright (c) Dan Green
Traffic Up on Weichert.com
Homebuyers are out there and ready to buy, as evidenced by a recent increase in hits to Weichert.com.
During January, 1.34 million unique visitors went to the site, a 19 percent increase over January 2008. In addition, total visits to the Web site were up 38 percent over December 2008.
Weichert.com's well-designed layout and easy-to-use search functionality continue to win raves from buyers. In fact, a client recently told her Weichert Sales Associate that, "compared to Brand X's Web site, Weichert takes the cake. ... I found this Web site so much more useful in one hour compared to the 14 days I've spent on Brand X's Web site."
During January, 1.34 million unique visitors went to the site, a 19 percent increase over January 2008. In addition, total visits to the Web site were up 38 percent over December 2008.
Weichert.com's well-designed layout and easy-to-use search functionality continue to win raves from buyers. In fact, a client recently told her Weichert Sales Associate that, "compared to Brand X's Web site, Weichert takes the cake. ... I found this Web site so much more useful in one hour compared to the 14 days I've spent on Brand X's Web site."
Real Estate Radio!
Real Estate Today, a new national radio show produced by NAR, will premiere on February 14, 2009.
The show will air online at www.RETRadio.com – visit the site any time after the premiere to listen to current or past programs.
Real Estate Today will cover the benefits and challenges of homeownership, from expert advice on buying and selling, to remodeling and landscaping, to the state of the current market and home financing issues.
The show will be an interactive experience that offers listeners an opportunity to exchange information and learn from some of the nation’s most recognized experts on a variety of real estate related topics such as landscaping, gardening, carpentry and general contracting, as well as mortgage experts and respected members of the media.
Hosted by award-winning radio broadcaster Gil Gross, the show will offer a fast-paced format that includes provocative experts, listener call-ins, field reports and a customized segment on local market conditions.
Where to tune in to Real Estate Today:
In the Washington, D.C., area, Real Estate Today will air on the show’s flagship station, 630 WMAL AM, every Sunday from 1-3 p.m., EST.
Satellite radio subscribers can hear Real Estate Today on:
America’s Talk, XM Channel 158, Saturdays 5-7 p.m. EST
Talk Radio, XM Channel 165, Saturdays 1-3 p.m. EST
Stars, Sirius-XM Channel 102, Saturdays 6-8 a.m. and Sundays 9-11 a.m. EST
For more information:
Visit the Real Estate Today Web site at www.RETRadio.com.
The show will air online at www.RETRadio.com – visit the site any time after the premiere to listen to current or past programs.
Real Estate Today will cover the benefits and challenges of homeownership, from expert advice on buying and selling, to remodeling and landscaping, to the state of the current market and home financing issues.
The show will be an interactive experience that offers listeners an opportunity to exchange information and learn from some of the nation’s most recognized experts on a variety of real estate related topics such as landscaping, gardening, carpentry and general contracting, as well as mortgage experts and respected members of the media.
Hosted by award-winning radio broadcaster Gil Gross, the show will offer a fast-paced format that includes provocative experts, listener call-ins, field reports and a customized segment on local market conditions.
Where to tune in to Real Estate Today:
In the Washington, D.C., area, Real Estate Today will air on the show’s flagship station, 630 WMAL AM, every Sunday from 1-3 p.m., EST.
Satellite radio subscribers can hear Real Estate Today on:
America’s Talk, XM Channel 158, Saturdays 5-7 p.m. EST
Talk Radio, XM Channel 165, Saturdays 1-3 p.m. EST
Stars, Sirius-XM Channel 102, Saturdays 6-8 a.m. and Sundays 9-11 a.m. EST
For more information:
Visit the Real Estate Today Web site at www.RETRadio.com.
Curb Appeal is Key in This Market
Curb appeal remains the standard. If a house doesn’t have it, the property is likely to languish on the market.
A Michigan State University study estimated that good landscaping adds 6 percent to 11 percent to the eventual sales price of a home.
It doesn’t take a ton of cash to get curb appeal. Often a little bit of elbow grease will do the trick.
Here are the basics:
Front yard and porch. Mow the grass and keep it green. Keep the porch immaculate – no dirt or bugs.
Mulch all the beds. Flowers and shrubs help, but if the owner can’t afford anything else, mulch will do the trick.
Paint will pay off. Covering everything with a fresh coat of paint – preferably a neutral color – will help the house sell. Freshening up the front door is particularly important.
Source: San Antonio Express-News, Jennifer Hiller (02/15/2009)
A Michigan State University study estimated that good landscaping adds 6 percent to 11 percent to the eventual sales price of a home.
It doesn’t take a ton of cash to get curb appeal. Often a little bit of elbow grease will do the trick.
Here are the basics:
Front yard and porch. Mow the grass and keep it green. Keep the porch immaculate – no dirt or bugs.
Mulch all the beds. Flowers and shrubs help, but if the owner can’t afford anything else, mulch will do the trick.
Paint will pay off. Covering everything with a fresh coat of paint – preferably a neutral color – will help the house sell. Freshening up the front door is particularly important.
Source: San Antonio Express-News, Jennifer Hiller (02/15/2009)
Will the Housing Rescue Plan Work?
Will the housing plan offered by President Barack Obama this week be enough to overcome the housing downturn? Some big guns in the world of economics have doubts.
The plan seeks to stem foreclsoures by helping home owners who are still current on their mortgage but at risk of defaulting. (For more details: Read What's in the Foreclosure Plan)
"It's a positive step in the right direction," says economist Mark Zandi of Moody's Economy.com. "I think it will be much more successful than those that preceded it. I worry that it's not going to be successful fast enough."
Likewise, Dean Baker, a housing specialist with the Center for Economic and Policy Research, said: "I'm not impressed. There are some good things in there. I think giving servicers incentives is a good thing. But it's mostly money for banks, not money for home owners. … The banks still decide who gets into this, and that's been a problem all along."
Patrick Newport, an economist with IHS-Global Insight, is also skeptical. He pointed out that the number of people who are underwater on their mortgages has risen to 15 million, but the Obama initiative aims to help only 7 million to 9 million,
"Obama's plan is an ambitious one, more ambitious than analysts had been led to expect," he says. "Whether it will stop the bloodletting, however, time will tell.”
Source: Los Angeles Times, Maura Reynolds (02/19/2009)
The plan seeks to stem foreclsoures by helping home owners who are still current on their mortgage but at risk of defaulting. (For more details: Read What's in the Foreclosure Plan)
"It's a positive step in the right direction," says economist Mark Zandi of Moody's Economy.com. "I think it will be much more successful than those that preceded it. I worry that it's not going to be successful fast enough."
Likewise, Dean Baker, a housing specialist with the Center for Economic and Policy Research, said: "I'm not impressed. There are some good things in there. I think giving servicers incentives is a good thing. But it's mostly money for banks, not money for home owners. … The banks still decide who gets into this, and that's been a problem all along."
Patrick Newport, an economist with IHS-Global Insight, is also skeptical. He pointed out that the number of people who are underwater on their mortgages has risen to 15 million, but the Obama initiative aims to help only 7 million to 9 million,
"Obama's plan is an ambitious one, more ambitious than analysts had been led to expect," he says. "Whether it will stop the bloodletting, however, time will tell.”
Source: Los Angeles Times, Maura Reynolds (02/19/2009)
Fannie and Freddie Plan Big Fee Increases
Fannie Mae and Freddie Mac are both toughening their credit score and down-payment rules as of April 1.
In response, major lenders are already factoring in the higher fees, which reduces the effectiveness of the stimulus efforts.
Under the new guidelines, buyers with down payments of less than 25 percent will be charged a three-quarter point add-on penalty, no matter how high their credit score.
Buyers of duplexes, where one unit is owner-occupied and the other is rented, will be charged a 1 percent add-on.
Refinancers who take cash out will be charged as much as three points if they have a low to moderate equity stake.
Freddie spokesman Brad German says the loan categories and credit risk combinations targeted by these fees "default at four to eight times" the rate of other mortgages backed by Freddie. "We have to manage these risks appropriately," he says.
Source: Washington Writers Group, Kenneth R. Harney (02/15/2009)
In response, major lenders are already factoring in the higher fees, which reduces the effectiveness of the stimulus efforts.
Under the new guidelines, buyers with down payments of less than 25 percent will be charged a three-quarter point add-on penalty, no matter how high their credit score.
Buyers of duplexes, where one unit is owner-occupied and the other is rented, will be charged a 1 percent add-on.
Refinancers who take cash out will be charged as much as three points if they have a low to moderate equity stake.
Freddie spokesman Brad German says the loan categories and credit risk combinations targeted by these fees "default at four to eight times" the rate of other mortgages backed by Freddie. "We have to manage these risks appropriately," he says.
Source: Washington Writers Group, Kenneth R. Harney (02/15/2009)
NC is ranking for Highest Home Appreciations!
11 Markets With Highest Home Appreciations
Not all U.S. housing markets went south last year. First American CoreLogic Inc., in its latest study, identified the best-performing markets in the U.S. for 2008.
In many cases, the markets that made the list are areas that never enjoyed significant increases in value over the last decade -- but neither did they lose value over the last three years.
Nationwide, American CoreLogic, which predicts loan performance for banks, reported housing prices were down 11.1 percent last year. It predicts that home values will continue to decline through 2010.
In the fourth quarter of 2008, the report found that home price declines accelerated in some states where home values previously had been fairly stable, including Maine, Pennsylvania, Arkansas, Oregon and Rhode Island.
“The geographic breadth of price declines rapidly expanded in the second half of 2008, which means that housing wealth losses are broadening across much of the country," says Mark Fleming, Chief Economist for First American CoreLogic.
The 11 cities with the highest home price appreciation in 2008 are:
Cedar Rapids, Iowa: 8.83 percent
Binghamton, N.Y.: 7.78 percent
Amsterdam, N.Y.: 7.89 percent
Malone, N.Y.: 7.60 percent
Bay City, Mich.: 6.87 percent
College Station-Bryan: 6.78 percent
Rocky Mount, N.C.: 6.69 percent
Auburn, N.Y.: 6.51 percent
Lebanon, Pa.: 6.41 percent
Elmira, N.Y.: 6.28 percent
Johnstown, Pa.: 6.20 percent
Source: First American CoreLogic Inc. (02/18/2009)
Not all U.S. housing markets went south last year. First American CoreLogic Inc., in its latest study, identified the best-performing markets in the U.S. for 2008.
In many cases, the markets that made the list are areas that never enjoyed significant increases in value over the last decade -- but neither did they lose value over the last three years.
Nationwide, American CoreLogic, which predicts loan performance for banks, reported housing prices were down 11.1 percent last year. It predicts that home values will continue to decline through 2010.
In the fourth quarter of 2008, the report found that home price declines accelerated in some states where home values previously had been fairly stable, including Maine, Pennsylvania, Arkansas, Oregon and Rhode Island.
“The geographic breadth of price declines rapidly expanded in the second half of 2008, which means that housing wealth losses are broadening across much of the country," says Mark Fleming, Chief Economist for First American CoreLogic.
The 11 cities with the highest home price appreciation in 2008 are:
Cedar Rapids, Iowa: 8.83 percent
Binghamton, N.Y.: 7.78 percent
Amsterdam, N.Y.: 7.89 percent
Malone, N.Y.: 7.60 percent
Bay City, Mich.: 6.87 percent
College Station-Bryan: 6.78 percent
Rocky Mount, N.C.: 6.69 percent
Auburn, N.Y.: 6.51 percent
Lebanon, Pa.: 6.41 percent
Elmira, N.Y.: 6.28 percent
Johnstown, Pa.: 6.20 percent
Source: First American CoreLogic Inc. (02/18/2009)
5 Tips for Homebuyers Seeking a Mortgage
Here’s a warning for potential borrowers: Nervous lenders have tough new rules and are paperwork crazy.
"Borrowers are going to have to prove they are the borrower they say they are," says Keith Gumbinger, vice president of HSH Associates, a mortgage-industry publisher in Pompton Plains, N.J.
Gumbinger says homebuyers should consider these things before they apply for a loan.
1. Down payments are critical. Borrowers should expect to put down at least 10 percent for a “conforming loan” – a mortgage that Fannie Mae and Freddie Mac will purchase.
2. Credit scores count. A 720 on the 850-point FICO rating scale will get a borrower access to the best rates. Rich Bira, branch manager of FCM Direct Lender in Chicago, says: "A score between 720 and 739 gets 0.125 percent added to the rate, a score between 700 and 719 gets 0.375 percent added to the rate, and a score between 680 and 699 gets 0.5 percent added to the rate.”
3. Consider VA and FHA. Borrowers without down payments or with less than stellar credit scores should consider these government-insured loans offered through the Federal Housing Administration of the Veterans Administration.
4. Unearth the records. Before applying, borrowers should organize tax, banking and other records that prove income, savings and debts. They should also expect to be patient about what may seem to be endless requests for information.
5. Get rid of debts. Limiting debts, including what borrowers expect to pay for the mortgage, to less than 43 percent of gross income is important.
Source: Chicago Tribune, Mary Umberger (02/15/09)
"Borrowers are going to have to prove they are the borrower they say they are," says Keith Gumbinger, vice president of HSH Associates, a mortgage-industry publisher in Pompton Plains, N.J.
Gumbinger says homebuyers should consider these things before they apply for a loan.
1. Down payments are critical. Borrowers should expect to put down at least 10 percent for a “conforming loan” – a mortgage that Fannie Mae and Freddie Mac will purchase.
2. Credit scores count. A 720 on the 850-point FICO rating scale will get a borrower access to the best rates. Rich Bira, branch manager of FCM Direct Lender in Chicago, says: "A score between 720 and 739 gets 0.125 percent added to the rate, a score between 700 and 719 gets 0.375 percent added to the rate, and a score between 680 and 699 gets 0.5 percent added to the rate.”
3. Consider VA and FHA. Borrowers without down payments or with less than stellar credit scores should consider these government-insured loans offered through the Federal Housing Administration of the Veterans Administration.
4. Unearth the records. Before applying, borrowers should organize tax, banking and other records that prove income, savings and debts. They should also expect to be patient about what may seem to be endless requests for information.
5. Get rid of debts. Limiting debts, including what borrowers expect to pay for the mortgage, to less than 43 percent of gross income is important.
Source: Chicago Tribune, Mary Umberger (02/15/09)
30-Year Rates Drop to Near 5%
Mortgage rates across the board fell this week, a welcoming sign to potential buyers and home owners looking to refinance.
The 30-year fixed-rate mortgage averaged 5.04 percent this week, a drop from last week's 5.16 percent. Last year at this time, the 30-year rate averaged 6.04 percent, Freddie Mac reports.
Freddie Mac reported the following for other rates for the week:
15-year mortgage rates: averaged 4.68 percent, down from last week's 4.81 percent. Last year at this time: 5.64 percent.
5-year hybrid adjustable-rate mortgages: averaged 5.04 percent this week, a drop from last week's 5.23 percent. Last year at this time: 5.37 percent
1-year ARMs: averaged 4.8 percent, down from last week's 4.94 percent. Last year at this time: 4.98 percent
"Mortgage rates followed bond yields lower this week as recent economic reports suggest the economy is still slowing, which reduces the future threat of inflation," says Frank Nothaft, Freddie Mac's chief economist.
Source: Freddie Mac(02/19/09)
The 30-year fixed-rate mortgage averaged 5.04 percent this week, a drop from last week's 5.16 percent. Last year at this time, the 30-year rate averaged 6.04 percent, Freddie Mac reports.
Freddie Mac reported the following for other rates for the week:
15-year mortgage rates: averaged 4.68 percent, down from last week's 4.81 percent. Last year at this time: 5.64 percent.
5-year hybrid adjustable-rate mortgages: averaged 5.04 percent this week, a drop from last week's 5.23 percent. Last year at this time: 5.37 percent
1-year ARMs: averaged 4.8 percent, down from last week's 4.94 percent. Last year at this time: 4.98 percent
"Mortgage rates followed bond yields lower this week as recent economic reports suggest the economy is still slowing, which reduces the future threat of inflation," says Frank Nothaft, Freddie Mac's chief economist.
Source: Freddie Mac(02/19/09)
What's In the Foreclosure Prevention Plan
The Obama administration yesterday released its long-awaited plan to stem foreclosures. It's organized into three categories:
1.) Help for home owners making their payments but at risk of default and foreclosure.
Home owners with a Fannie Mae or Freddie Mac loan would be eligible to refinance as long as their mortgage doesn't exceed 105 percent of the home's current market value. Currently owners need to have at least 20 percent equity. Potential impact: 4-5 million households.
2.) Help for home owners already in default and in need of loan modification.
For lenders that voluntarily agree to lower a borrower's payment so that it makes up no more than 38 percent of the borrower's income, the government would share the cost of lowering the mortgage burden to 31 percent of income. Incentives to lenders to participate include a $1,000 payment.
Borrowers can receive up to $1,000 as an incentive to stay current on their new mortgage. Still in the works is a proposed provision that would allow bankruptcy judges to require loan modification (known as a cramdown) as part of a household's restructuring. That provision requires legislation by Congress. Estimated potential impact: 3-4 million households.
3.) Doubled resources to Fannie Mae and Freddie Mac.
To encourage investors to buy the secondary market companies' mortgage-backed securities, the government explicitly backstops them to up to $400 billion, twice the current amount.
The plan does not provide help to investors or to home owners who are in trouble with a second home, nor does it apply to homeowners whose mortgage is part of a private-label mortgage security that is not backed by Fannie Mae or Freddie Mac.
"The administration's proposed plan, combined with provisions like the $8,000 first-time home buyer tax credit in the just-enacted American Recovery and Reinvestment Act, will help minimize foreclosures, shrink housing inventory, stabilize home values, and move the country closer to an economic recovery," says NAR President Charles McMillan.
1.) Help for home owners making their payments but at risk of default and foreclosure.
Home owners with a Fannie Mae or Freddie Mac loan would be eligible to refinance as long as their mortgage doesn't exceed 105 percent of the home's current market value. Currently owners need to have at least 20 percent equity. Potential impact: 4-5 million households.
2.) Help for home owners already in default and in need of loan modification.
For lenders that voluntarily agree to lower a borrower's payment so that it makes up no more than 38 percent of the borrower's income, the government would share the cost of lowering the mortgage burden to 31 percent of income. Incentives to lenders to participate include a $1,000 payment.
Borrowers can receive up to $1,000 as an incentive to stay current on their new mortgage. Still in the works is a proposed provision that would allow bankruptcy judges to require loan modification (known as a cramdown) as part of a household's restructuring. That provision requires legislation by Congress. Estimated potential impact: 3-4 million households.
3.) Doubled resources to Fannie Mae and Freddie Mac.
To encourage investors to buy the secondary market companies' mortgage-backed securities, the government explicitly backstops them to up to $400 billion, twice the current amount.
The plan does not provide help to investors or to home owners who are in trouble with a second home, nor does it apply to homeowners whose mortgage is part of a private-label mortgage security that is not backed by Fannie Mae or Freddie Mac.
"The administration's proposed plan, combined with provisions like the $8,000 first-time home buyer tax credit in the just-enacted American Recovery and Reinvestment Act, will help minimize foreclosures, shrink housing inventory, stabilize home values, and move the country closer to an economic recovery," says NAR President Charles McMillan.
Mortgage apps up 45 percent
Mortgage loan application volume increased 45.7 percent from one week earlier and is up 5.2 percent compared with the same week in 2008, according to the Mortgage Bankers Association. According to MBA's study, covering approximately 50 percent of all U.S. retail residential mortgage applications, the average contract interest rate for 30-year fixed-rate mortgages (FRMs) decreased to 4.99 percent from 5.19 percent, for 80 percent loan-to-value (LTV) ratio loans.
$75 billion homeowner relief program
The $75 billion foreclosure prevention program announced by President Obama may go a long way to helping millions of distressed borrowers and to stopping the housing market's downward spiral, experts said. The multi-pronged plan, which calls for modifying loans for borrowers both at risk or already in default and for allowing those with little or no home equity to refinance into more affordable loans through interest rate reductions, has made some strange bedfellows.
The plan has two main pieces: refinances for conforming loans, and modifications for subprime and exotic loans. The refinance piece is designed to help 4 million to 5 million "responsible homeowners."
Who are these responsible homeowners? They:
* Haven't fallen behind on their monthly payments.
* Owe more than 80 percent of their homes' currently appraised value.
* Owe no more than 105 percent of the currently appraised value.
* Have mortgages that are owned or guaranteed by Fannie or Freddie.
That last requirement effectively imposes a limit on loan amounts. Few mortgages for more than $417,000 will qualify for refinances because that is the conforming limit. Unlike the previous measures, Obama's plan uses government funds to provide incentives to borrowers, loan servicers and mortgage investors to modify loans to affordable monthly payments. And it offers help to at-risk borrowers before they stop paying. The administration says it will help up to nine million people avoid foreclosure.
The plan calls for servicers to reduce interest rates so that a person's monthly obligation is no more than 38% of his or her income. Then the government would kick in money to bring payments down to 31% of the homeowner's income. It also gives servicers money for modifying loans, and additional funds if borrowers stay current or are helped before they fall behind. Finally, it is developing a $10 billion insurance fund that will pay mortgage holders based on declines in a home price index.
Sources: Bankrate.com; CNNMoney.com
REAL Trends Comment: I don't know about you but I am glad to do my part to assist homeowners who bet that home prices would go up (like the rest of us) yet found themselves in a losing position when the market declined. In fact I am going to stop making my payments because I qualify and I think that the decline in my income and my home value is not my fault and someone else should pay for my misfortune. In fact I also have some bad bets I made in the stock and bond market so I think the Federal government should arrange a bailout of that as well...like giving me the difference between what I paid and what the investments are worth now.....
In yet another bold move, the Feds are moving to fix a problem that is already working its way through the system, another the "cows are already out of the barn." In California, Phoenix and Las Vegas, unit sales are roaring with first time homebuyers and investors purchasing large numbers of foreclosures. This is the start of a true recovery. Loan modifications throughout the country have been a bust. And they will continue to do so. Then comes the ability of judges to "cram down" the loan balances of existing mortgages if someone is really affected. Next come investors and bank increasing the prices of credit for everyone because some third party can change the mortgage simply because they "feel" the pain of the homeowner and think it is fair. Imagine our "impartial" judicial system now controlling whether your mortgage balance is the right size for you...after the fact.
Now return to part one...as long as it's good for some lets all jump in.
The plan has two main pieces: refinances for conforming loans, and modifications for subprime and exotic loans. The refinance piece is designed to help 4 million to 5 million "responsible homeowners."
Who are these responsible homeowners? They:
* Haven't fallen behind on their monthly payments.
* Owe more than 80 percent of their homes' currently appraised value.
* Owe no more than 105 percent of the currently appraised value.
* Have mortgages that are owned or guaranteed by Fannie or Freddie.
That last requirement effectively imposes a limit on loan amounts. Few mortgages for more than $417,000 will qualify for refinances because that is the conforming limit. Unlike the previous measures, Obama's plan uses government funds to provide incentives to borrowers, loan servicers and mortgage investors to modify loans to affordable monthly payments. And it offers help to at-risk borrowers before they stop paying. The administration says it will help up to nine million people avoid foreclosure.
The plan calls for servicers to reduce interest rates so that a person's monthly obligation is no more than 38% of his or her income. Then the government would kick in money to bring payments down to 31% of the homeowner's income. It also gives servicers money for modifying loans, and additional funds if borrowers stay current or are helped before they fall behind. Finally, it is developing a $10 billion insurance fund that will pay mortgage holders based on declines in a home price index.
Sources: Bankrate.com; CNNMoney.com
REAL Trends Comment: I don't know about you but I am glad to do my part to assist homeowners who bet that home prices would go up (like the rest of us) yet found themselves in a losing position when the market declined. In fact I am going to stop making my payments because I qualify and I think that the decline in my income and my home value is not my fault and someone else should pay for my misfortune. In fact I also have some bad bets I made in the stock and bond market so I think the Federal government should arrange a bailout of that as well...like giving me the difference between what I paid and what the investments are worth now.....
In yet another bold move, the Feds are moving to fix a problem that is already working its way through the system, another the "cows are already out of the barn." In California, Phoenix and Las Vegas, unit sales are roaring with first time homebuyers and investors purchasing large numbers of foreclosures. This is the start of a true recovery. Loan modifications throughout the country have been a bust. And they will continue to do so. Then comes the ability of judges to "cram down" the loan balances of existing mortgages if someone is really affected. Next come investors and bank increasing the prices of credit for everyone because some third party can change the mortgage simply because they "feel" the pain of the homeowner and think it is fair. Imagine our "impartial" judicial system now controlling whether your mortgage balance is the right size for you...after the fact.
Now return to part one...as long as it's good for some lets all jump in.
Message from NAR President about Stimulus Plan
Dear Fellow REALTOR®,
For nearly four months, NAR has been working to deliver to you and to our nation a comprehensive plan to stabilize the housing market.
This week, we saw countless hours of hard work pay off – in a MAJOR way – when the federal government implemented NAR's recommendations to stimulate housing with the signing of the American Recovery and Reinvestment Act of 2009.
This bold and unprecedented move to help housing did not happen by chance. Just a few months ago, the auto industry had Congress' ear. Yet, thanks to countless meetings, letters, phone calls, and public pressure that we – the REALTORS® of America – placed on lawmakers in Washington, D.C., housing emerged as the top priority in the new Administration and in Congress. While some of the items in the Act are controversial and are currently being debated, most of our top priorities were addressed.
Thanks to all of our hard work, America's homebuyers and homeowners will soon have:
1. Lower interest rates for home mortgages;
2. A greater ability to get financing through FHA, Fannie Mae and Freddie Mac in high-cost areas;
3. A true tax credit incentive to buy a home NOW; and
4. Foreclosure mitigation and short-sale standards.
As a direct result of NAR's advocacy, we hope REALTORS® will see an increase in home sales this year. NAR also continues to make significant progress on our efforts to unclog the pipeline for foreclosures and to address administrative problems with short sales.
Such significant movement on these critical issues is rare. I personally thank and congratulate each and every member of the National Association of REALTORS® for helping to make NAR's Housing Stimulus Plan a reality. For more information and details on these new laws and programs, visit the Unlock America's Economy Page on Realtor.org:
http://www.realtor.org/government_affairs/gapublic/gses_conservatorship?LID=RONav0023
Make no mistake -- we're just getting started. NAR will continue to push for other important laws and policies that can help you in your business. From keeping banks out of real estate to providing you with affordable health coverage, you can count on the "Voice for Real Estate" to help you gain an advantage in every kind of market.
That's the power of NAR, and it's why I am proud to be a member and to serve as your 2009 President.
Once again, thank you all, and keep up the great work!
Sincerely,
Charles McMillan, CIPS, GRI
2009 NAR President
For nearly four months, NAR has been working to deliver to you and to our nation a comprehensive plan to stabilize the housing market.
This week, we saw countless hours of hard work pay off – in a MAJOR way – when the federal government implemented NAR's recommendations to stimulate housing with the signing of the American Recovery and Reinvestment Act of 2009.
This bold and unprecedented move to help housing did not happen by chance. Just a few months ago, the auto industry had Congress' ear. Yet, thanks to countless meetings, letters, phone calls, and public pressure that we – the REALTORS® of America – placed on lawmakers in Washington, D.C., housing emerged as the top priority in the new Administration and in Congress. While some of the items in the Act are controversial and are currently being debated, most of our top priorities were addressed.
Thanks to all of our hard work, America's homebuyers and homeowners will soon have:
1. Lower interest rates for home mortgages;
2. A greater ability to get financing through FHA, Fannie Mae and Freddie Mac in high-cost areas;
3. A true tax credit incentive to buy a home NOW; and
4. Foreclosure mitigation and short-sale standards.
As a direct result of NAR's advocacy, we hope REALTORS® will see an increase in home sales this year. NAR also continues to make significant progress on our efforts to unclog the pipeline for foreclosures and to address administrative problems with short sales.
Such significant movement on these critical issues is rare. I personally thank and congratulate each and every member of the National Association of REALTORS® for helping to make NAR's Housing Stimulus Plan a reality. For more information and details on these new laws and programs, visit the Unlock America's Economy Page on Realtor.org:
http://www.realtor.org/government_affairs/gapublic/gses_conservatorship?LID=RONav0023
Make no mistake -- we're just getting started. NAR will continue to push for other important laws and policies that can help you in your business. From keeping banks out of real estate to providing you with affordable health coverage, you can count on the "Voice for Real Estate" to help you gain an advantage in every kind of market.
That's the power of NAR, and it's why I am proud to be a member and to serve as your 2009 President.
Once again, thank you all, and keep up the great work!
Sincerely,
Charles McMillan, CIPS, GRI
2009 NAR President
Friday, February 20, 2009
An unusual incentive to buy a home
Charlotte homebuilder offers partial refund if area home values fall more than 10% within a year of purchase.
By Stella M. Hopkins
shopkins@charlotte observer.com
Posted: Friday, Feb. 20, 2009
Simonini Builders will refund customers up to 5 percent of what they paid for a house if Charlotte-area home values take a steep plunge. The refund kicks in if values decline within a year of purchase by more than 10 percent and up to 15 percent, based on a widely used home price index.
On a $700,000 house, the refund would be $700 for a decline of 10.1 percent, to as much as $35,000 if values fall 15 percent.
“We view it more as an insurance policy for the consumer,” said Ray Killian Jr., CEO and co-owner of the company. “We give them a hedge.”
For more than a year, new home construction has been plunging locally and nationwide as lending standards tightened, foreclosures glutted the market, unemployment rose and the economy soured. Even people with good credit and relatively secure jobs are hesitant to spend. And the ongoing decline in home values has some buyers holding out for lower prices or unwilling to buy and risk a quick loss.
Discounting and other incentives have been common among builders hungry for sales. Killian says they've already cut prices 8 percent to 13 percent.
But several real estate experts said they hadn't heard of a refund plan like the Simonini deal. The hedge, which Killian credits to Chief Financial Officer Bill Saint, is based on the widely watched S&P/Case-Shiller Home Price Index.
“It's a very clever idea,” said François Ortalo-Magné, a professor and chairman of the real estate department at the University of Wisconsin-Madison. “In today's market, given the fear and uncertainty, we're looking for things to get the market flow going again.”
The likelihood of a payout is probably slim. Charlotte never had a big bubble market surge in home prices. A specific neighborhood might have had a big run-up and may fall hard. But the refund is based on the index, which as of November showed Charlotte-area prices had declined 5.3 percent compared with a year ago. That was the biggest annual drop in more than 20 years of available data.
December figures are due Tuesday.
The refund offer is backed by the company, not insurance or an outside party. So, Killian said: “It's only as good as the financial strength of the company.”
Killian said the company offers customers its credit report, prepared by an outside firm, and a financial bill of health from an accounting firm. Simonini also provides customers with contacts at 12 of its vendors, so they can confirm the builder is paying its bills.
The firm, which traces its Charlotte roots to 1973, typically builds at the higher end, with some houses above $1 million. Models opened this week at its Christenbury Hall near Concord Mills, with prices starting around $675,000. Other projects include Heydon Hall, near Quail Hollow Country Club; the SouthPark area's Conservatory, which starts around $875,000, and The Preserve at Robbins Park near Lake Norman, starting at about $645,000.
Simonini is also tackling the problem of would-be customers who can't buy because they can't sell what they have. The builder will help identify Realtors who have been successful in that area, with close attention to how closely sales prices are tracking with asking prices. Simonini interior designers will evaluate the existing house and recommend fix-ups to lure buyers. The builder will then do up to $15,000 of repairs and improvements at cost, with no profit mark-up. The customer gets the amount spent as a credit on the new home deal.
“We're in the business of selling homes,” Killian said. “We recognize there's a lot of confusion and fear in the market.”
By Stella M. Hopkins
shopkins@charlotte observer.com
Posted: Friday, Feb. 20, 2009
Simonini Builders will refund customers up to 5 percent of what they paid for a house if Charlotte-area home values take a steep plunge. The refund kicks in if values decline within a year of purchase by more than 10 percent and up to 15 percent, based on a widely used home price index.
On a $700,000 house, the refund would be $700 for a decline of 10.1 percent, to as much as $35,000 if values fall 15 percent.
“We view it more as an insurance policy for the consumer,” said Ray Killian Jr., CEO and co-owner of the company. “We give them a hedge.”
For more than a year, new home construction has been plunging locally and nationwide as lending standards tightened, foreclosures glutted the market, unemployment rose and the economy soured. Even people with good credit and relatively secure jobs are hesitant to spend. And the ongoing decline in home values has some buyers holding out for lower prices or unwilling to buy and risk a quick loss.
Discounting and other incentives have been common among builders hungry for sales. Killian says they've already cut prices 8 percent to 13 percent.
But several real estate experts said they hadn't heard of a refund plan like the Simonini deal. The hedge, which Killian credits to Chief Financial Officer Bill Saint, is based on the widely watched S&P/Case-Shiller Home Price Index.
“It's a very clever idea,” said François Ortalo-Magné, a professor and chairman of the real estate department at the University of Wisconsin-Madison. “In today's market, given the fear and uncertainty, we're looking for things to get the market flow going again.”
The likelihood of a payout is probably slim. Charlotte never had a big bubble market surge in home prices. A specific neighborhood might have had a big run-up and may fall hard. But the refund is based on the index, which as of November showed Charlotte-area prices had declined 5.3 percent compared with a year ago. That was the biggest annual drop in more than 20 years of available data.
December figures are due Tuesday.
The refund offer is backed by the company, not insurance or an outside party. So, Killian said: “It's only as good as the financial strength of the company.”
Killian said the company offers customers its credit report, prepared by an outside firm, and a financial bill of health from an accounting firm. Simonini also provides customers with contacts at 12 of its vendors, so they can confirm the builder is paying its bills.
The firm, which traces its Charlotte roots to 1973, typically builds at the higher end, with some houses above $1 million. Models opened this week at its Christenbury Hall near Concord Mills, with prices starting around $675,000. Other projects include Heydon Hall, near Quail Hollow Country Club; the SouthPark area's Conservatory, which starts around $875,000, and The Preserve at Robbins Park near Lake Norman, starting at about $645,000.
Simonini is also tackling the problem of would-be customers who can't buy because they can't sell what they have. The builder will help identify Realtors who have been successful in that area, with close attention to how closely sales prices are tracking with asking prices. Simonini interior designers will evaluate the existing house and recommend fix-ups to lure buyers. The builder will then do up to $15,000 of repairs and improvements at cost, with no profit mark-up. The customer gets the amount spent as a credit on the new home deal.
“We're in the business of selling homes,” Killian said. “We recognize there's a lot of confusion and fear in the market.”
American Recovery and Reinvestment Act Summary
The American Recovery and Reinvestment Act of 2009, H.R. 1, has passed the
House and Senate and awaiting the President’s signature. The details of the
legislation are still being finalized. A number of provisions that are important to
Realtors® are expected to be included in the legislation:
Homebuyer Tax Credit – An $8,000 tax credit that will be available for qualified
purchase of a principal residence by a first time homebuyer between January 1,
2009 and September 1, 2009. The credit does not require repayment.
Individuals who purchase in 2009 using financing assistance from state and local
mortgage bonds will be permitted to use the credit, as well.
Federal Housing Agency (FHA), Fannie Mae and Freddie Mac Revised Loan
Limits – Specifics have not been released but reports indicate that the 2008
limits have been reinstated for 2009 except in those communities where the 2009
limits are higher. Additional increases in individual communities may also be
available at the discretion of the Housing and Urban Development (HUD)
Secretary.
Foreclosure Mitigation & Neighborhood Stabilization – Funding for states
and local communities to be used for neighborhood stabilization activities for the
redevelopment of abandoned and foreclosed homes are authorized.
These elements of the American Recovery and Reinvestment Act of 2009 are the
pillars of the National Association of Realtors® (NAR) Housing Stimulus Plan
presented to the 111th Congress. NAR will continue to work closely with the
Department of Treasury and Secretary Timothy Geithner to implement a
mortgage buy-down program. NAR also recommended that the Treasury
Department expand the Term Asset-Backed Loan Facility (TALF) to include
commercial mortgage-backed securities as eligible collateral. The Treasury has
approved this recommendation and this will encourage investment in the
commercial real estate market.
Additional housing and other provisions of interest to Realtors®:
Rural Housing Service - Increased funding for the Rural Housing Service direct
and guaranteed loan programs.
Low Income Housing Grants - Allow states to trade in a portion of their 2009
low-income housing tax credits for Treasury grants to finance the construction or
acquisition and rehabilitation of low-income housing, including those with or
without tax credit allocations.
Tax Exempt Housing Bonds - Tax-exempt interest earned on specified state
and local bonds issued during 2009 and 2010 will not be subject to the
Alternative Minimum Tax (AMT). In addition, financial institutions will have
greater capacity to purchase tax-exempt state and local bonds.
Energy Efficient Housing - Grants for energy retrofits for federally assisted
housing (section 8), funding for Energy Efficiency & Conservation Block Grants to
states, and increases in the residential tax credit through 2010 for certain energy
efficient upgrades.
Transportation - Spending for upgrades and repairs of road, bridges and transit
facilities.
Broadband Deployment – Grants to make broadband available in un-served
communities
NAR’s work with Congress and the Treasury Department is not yet completed.
As the leading advocate for homeowners and the real estate industry, NAR will
continue to address the issues facing Americans who are trying to purchase a
new home, protect their current home or preserve investment opportunities in
residential and commercial properties. NAR recognizes that without a housing
recovery, an overall economic recovery is impossible.
Source: NAR
House and Senate and awaiting the President’s signature. The details of the
legislation are still being finalized. A number of provisions that are important to
Realtors® are expected to be included in the legislation:
Homebuyer Tax Credit – An $8,000 tax credit that will be available for qualified
purchase of a principal residence by a first time homebuyer between January 1,
2009 and September 1, 2009. The credit does not require repayment.
Individuals who purchase in 2009 using financing assistance from state and local
mortgage bonds will be permitted to use the credit, as well.
Federal Housing Agency (FHA), Fannie Mae and Freddie Mac Revised Loan
Limits – Specifics have not been released but reports indicate that the 2008
limits have been reinstated for 2009 except in those communities where the 2009
limits are higher. Additional increases in individual communities may also be
available at the discretion of the Housing and Urban Development (HUD)
Secretary.
Foreclosure Mitigation & Neighborhood Stabilization – Funding for states
and local communities to be used for neighborhood stabilization activities for the
redevelopment of abandoned and foreclosed homes are authorized.
These elements of the American Recovery and Reinvestment Act of 2009 are the
pillars of the National Association of Realtors® (NAR) Housing Stimulus Plan
presented to the 111th Congress. NAR will continue to work closely with the
Department of Treasury and Secretary Timothy Geithner to implement a
mortgage buy-down program. NAR also recommended that the Treasury
Department expand the Term Asset-Backed Loan Facility (TALF) to include
commercial mortgage-backed securities as eligible collateral. The Treasury has
approved this recommendation and this will encourage investment in the
commercial real estate market.
Additional housing and other provisions of interest to Realtors®:
Rural Housing Service - Increased funding for the Rural Housing Service direct
and guaranteed loan programs.
Low Income Housing Grants - Allow states to trade in a portion of their 2009
low-income housing tax credits for Treasury grants to finance the construction or
acquisition and rehabilitation of low-income housing, including those with or
without tax credit allocations.
Tax Exempt Housing Bonds - Tax-exempt interest earned on specified state
and local bonds issued during 2009 and 2010 will not be subject to the
Alternative Minimum Tax (AMT). In addition, financial institutions will have
greater capacity to purchase tax-exempt state and local bonds.
Energy Efficient Housing - Grants for energy retrofits for federally assisted
housing (section 8), funding for Energy Efficiency & Conservation Block Grants to
states, and increases in the residential tax credit through 2010 for certain energy
efficient upgrades.
Transportation - Spending for upgrades and repairs of road, bridges and transit
facilities.
Broadband Deployment – Grants to make broadband available in un-served
communities
NAR’s work with Congress and the Treasury Department is not yet completed.
As the leading advocate for homeowners and the real estate industry, NAR will
continue to address the issues facing Americans who are trying to purchase a
new home, protect their current home or preserve investment opportunities in
residential and commercial properties. NAR recognizes that without a housing
recovery, an overall economic recovery is impossible.
Source: NAR
Thursday, February 19, 2009
5 reasons to buy a home this year
5 reasons to buy a home this year.
Affordability returns to housing, and buyers have loads of negotiating power. Click Here for the full article.
Affordability returns to housing, and buyers have loads of negotiating power. Click Here for the full article.
BofA, other banks suspend foreclosures
Wells Fargo, J.P. Morgan Chase, Bank of America Corp. and Citigroup Inc. have agreed to halt home foreclosures while the federal government works out a plan to stabilize the nation’s banking industry.
“We will not add to the foreclosure process any new owner-occupied residential loans that are owned and serviced by J.P. Morgan Chase,” said J.P. Morgan Chase CEO Jamie Dimon in a Feb. 12 letter to Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee.
That moratorium would remain in effect through March 6.
Citigroup said it would put a moratorium on foreclosures of Citigroup-owned loans on principal residences, among others. Citi’s moratorium is scheduled to last until March 12, barring federal action before then.
San Francisco-based Wells Fargo, one of the nation’s largest mortgage lenders, joined the moratorium Friday along with BofA.
“The vast majority of the mortgage loans Wells Fargo services are owned by other investors. We are fully committed to helping our customers find ways to avoid all preventable foreclosures, and we are working with these investors and related contractual commitments to determine how we will support the moratorium request,” said Wells Fargo spokesman Chris Hammond.
With the December 31 completion on the Wells Fargo/Wachovia merger, Wells Fargo became the investor in the Wachovia Pick-a-Payment portfolio. All customers within this portfolio referred to foreclosure or in foreclosure already received an extension through the end of February,” Hammond said. “For these customers and all of the loans Wells Fargo holds, we will extend the timeline until the Secretary of Treasury’s foreclosure prevention plan is announced, assumed to be in the next couple of weeks.”
“We will not add to the foreclosure process any new owner-occupied residential loans that are owned and serviced by J.P. Morgan Chase,” said J.P. Morgan Chase CEO Jamie Dimon in a Feb. 12 letter to Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee.
That moratorium would remain in effect through March 6.
Citigroup said it would put a moratorium on foreclosures of Citigroup-owned loans on principal residences, among others. Citi’s moratorium is scheduled to last until March 12, barring federal action before then.
San Francisco-based Wells Fargo, one of the nation’s largest mortgage lenders, joined the moratorium Friday along with BofA.
“The vast majority of the mortgage loans Wells Fargo services are owned by other investors. We are fully committed to helping our customers find ways to avoid all preventable foreclosures, and we are working with these investors and related contractual commitments to determine how we will support the moratorium request,” said Wells Fargo spokesman Chris Hammond.
With the December 31 completion on the Wells Fargo/Wachovia merger, Wells Fargo became the investor in the Wachovia Pick-a-Payment portfolio. All customers within this portfolio referred to foreclosure or in foreclosure already received an extension through the end of February,” Hammond said. “For these customers and all of the loans Wells Fargo holds, we will extend the timeline until the Secretary of Treasury’s foreclosure prevention plan is announced, assumed to be in the next couple of weeks.”
Farewell to 'for sale by owner'?
Not long ago, for sale by owner (FSBO) Web sites were heralded as a fresh entrepreneurial wave that was going to upend the staid real estate industry. In 2006 real estate sales "unassisted" by a broker accounted for 20% of sales made, says Steve Murray, editor and owner of Real Trends, a market research firm in Castle Rock, Colo.
Then the bubble burst. During the past four years, David Zwiefelhofer, who designs FSBO Web sites and sells them to real estate entrepreneurs, has sold about 50 regional FSBO sites through his company, FSBOWebsite.com. Only 30 to 35 are still operating.
"I used to get a phone call a day from people interested in FSBO Web sites," Zwiefelhofer says. "Now it's maybe one call a week."
So were FSBO sites just flashes in the pan? Murray says that with properties harder to sell these days, sellers are returning to brokers for professional marketing help, causing the unassisted slice of the market to slip to around 15%. But he expects the FSBO market to bounce back - eventually. To top of page
Then the bubble burst. During the past four years, David Zwiefelhofer, who designs FSBO Web sites and sells them to real estate entrepreneurs, has sold about 50 regional FSBO sites through his company, FSBOWebsite.com. Only 30 to 35 are still operating.
"I used to get a phone call a day from people interested in FSBO Web sites," Zwiefelhofer says. "Now it's maybe one call a week."
So were FSBO sites just flashes in the pan? Murray says that with properties harder to sell these days, sellers are returning to brokers for professional marketing help, causing the unassisted slice of the market to slip to around 15%. But he expects the FSBO market to bounce back - eventually. To top of page
New Appraisal Regulations Under Fire
Beginning May 1, the responsibility for managing home appraisals will move to a middleman, known as appraisal management companies or AMCs.
Under new federal regulations, mortgage brokers and loan officers can’t directly order appraisals. Instead, they are expected to go through third-party AMCs, which are supposed to prevent them from pressuring appraisers.
But critics of the new plan say nobody is watching the AMCs.
“[The new rules] have transferred the [improper influence] problem to these appraisal management companies, which are not regulated by anybody," says Bill Garber, director of government affairs at the Appraisal Institute, a nonprofit trade group.
"[The marketplace is] still vulnerable to appraiser pressure because the incentives are still there to get deals done and collect the fees," says Susan M. Wachter, professor of real estate at the University of Pennsylvania's Wharton School.
Federal housing officials, who helped write the new laws, say they will hold AMCs accountable.
James B. Lockhart, director of the Federal Housing Finance Agency, which oversees Fannie and Freddie, says, "If [AMCs] are applying undue pressure, that would be a violation of Fannie and Freddie rules, and we would take action.”
Under new federal regulations, mortgage brokers and loan officers can’t directly order appraisals. Instead, they are expected to go through third-party AMCs, which are supposed to prevent them from pressuring appraisers.
But critics of the new plan say nobody is watching the AMCs.
“[The new rules] have transferred the [improper influence] problem to these appraisal management companies, which are not regulated by anybody," says Bill Garber, director of government affairs at the Appraisal Institute, a nonprofit trade group.
"[The marketplace is] still vulnerable to appraiser pressure because the incentives are still there to get deals done and collect the fees," says Susan M. Wachter, professor of real estate at the University of Pennsylvania's Wharton School.
Federal housing officials, who helped write the new laws, say they will hold AMCs accountable.
James B. Lockhart, director of the Federal Housing Finance Agency, which oversees Fannie and Freddie, says, "If [AMCs] are applying undue pressure, that would be a violation of Fannie and Freddie rules, and we would take action.”
Tuesday, February 17, 2009
Fannie, Freddie, banks suspend foreclosure sales
Fannie Mae and Freddie Mac will suspend all foreclosure sales and evictions of occupied properties through March 6 in anticipation of the Administration's national foreclosure prevention and loan modification program."
Stimulus advances with tax credit changes
The $790 billion stimulus package hammered out by House and Senate conferees increases the homebuyer tax credit to $8,000, from $7,500, and drops the repayment feature for buyers who hold on to their property for at least three years.
The legislation also extends the effective date of the credit to December 1 from June 30, and extends eligibility to borrowers who buy their home with the help of state or local financial assistance that comes from the proceeds of tax-exempt mortgage revenue bonds. The credit remains open only to first-time buyers (those who haven't owned in at least three years) and some income eligibility restrictions apply, but those are unchanged from the existing program.
Other provisions reportedly in the bill that could help housing markets and communities include:
* FHA and conforming loan limits. Specifics have not been released but reports indicate that the 2008 limits have been reinstated for 2009 except in those communities where the 2009 limits are higher. Additional increases in individual communities may also be available at the discretion of the secretary of the U.S. Department of Housing and Urban Development.
* Foreclosure mitigation and neighborhood stabilization. Funding for states and localities to be used for neighborhood stabilization activities for the redevelopment of abandoned and foreclosed homes are authorized. Some news reports put the funding level at $2 billion.
* Rental assistance. Up to $1.5 billion to provide short-term rental assistance and other aid for families during the economic crisis.
* Low-income housing grants. Allow states to trade in a portion of their 2009 low-income housing tax credits for Treasury grants to finance the construction or acquisition and rehabilitation of low-income housing, including those with or without tax credit allocations
* Tax-exempt housing bonds. Tax-exempt interest earned on specified state and local bonds issued during 2009 and 2010 will not be subject to the Alternative Minimum Tax (AMT). In addition, financial institutions will have greater capacity to purchase tax-exempt state and local bonds
Energy efficient housing. Grants for energy retrofits for federally assisted housing (Section 8), funding for energy efficiency and conservation block grants to states, and increases in the residential tax credit through 2010 for certain energy efficient upgrades.
Source: NAR, AP, Washington Post, New York Times, Bloomberg, and The Wall Street Journal
REAL Trends Comment: As we have said in earlier REAL Trends E-mail Updates, the Congress missed the boat with the limited additional assistance to the housing market included in the final bill. While virtually every national political leader has said that arresting the decline in the housing market is critical to economic recovery, the final bill poured the proverbial "spoon" of medicine on a raging infection (or so say political leaders and those at the Federal Reserve Board and the Treasury). The purchase of homes triggers thousands of additional dollars in spending on paint, carpeting, fixtures, furniture and appliances and would have initiated more economic activity than almost any other use of the funds. The fact that the Congress missed this so badly does not bode well for other actions taken by the Federal government who seem to be deaf to economic reality.
The legislation also extends the effective date of the credit to December 1 from June 30, and extends eligibility to borrowers who buy their home with the help of state or local financial assistance that comes from the proceeds of tax-exempt mortgage revenue bonds. The credit remains open only to first-time buyers (those who haven't owned in at least three years) and some income eligibility restrictions apply, but those are unchanged from the existing program.
Other provisions reportedly in the bill that could help housing markets and communities include:
* FHA and conforming loan limits. Specifics have not been released but reports indicate that the 2008 limits have been reinstated for 2009 except in those communities where the 2009 limits are higher. Additional increases in individual communities may also be available at the discretion of the secretary of the U.S. Department of Housing and Urban Development.
* Foreclosure mitigation and neighborhood stabilization. Funding for states and localities to be used for neighborhood stabilization activities for the redevelopment of abandoned and foreclosed homes are authorized. Some news reports put the funding level at $2 billion.
* Rental assistance. Up to $1.5 billion to provide short-term rental assistance and other aid for families during the economic crisis.
* Low-income housing grants. Allow states to trade in a portion of their 2009 low-income housing tax credits for Treasury grants to finance the construction or acquisition and rehabilitation of low-income housing, including those with or without tax credit allocations
* Tax-exempt housing bonds. Tax-exempt interest earned on specified state and local bonds issued during 2009 and 2010 will not be subject to the Alternative Minimum Tax (AMT). In addition, financial institutions will have greater capacity to purchase tax-exempt state and local bonds
Energy efficient housing. Grants for energy retrofits for federally assisted housing (Section 8), funding for energy efficiency and conservation block grants to states, and increases in the residential tax credit through 2010 for certain energy efficient upgrades.
Source: NAR, AP, Washington Post, New York Times, Bloomberg, and The Wall Street Journal
REAL Trends Comment: As we have said in earlier REAL Trends E-mail Updates, the Congress missed the boat with the limited additional assistance to the housing market included in the final bill. While virtually every national political leader has said that arresting the decline in the housing market is critical to economic recovery, the final bill poured the proverbial "spoon" of medicine on a raging infection (or so say political leaders and those at the Federal Reserve Board and the Treasury). The purchase of homes triggers thousands of additional dollars in spending on paint, carpeting, fixtures, furniture and appliances and would have initiated more economic activity than almost any other use of the funds. The fact that the Congress missed this so badly does not bode well for other actions taken by the Federal government who seem to be deaf to economic reality.
Friday, February 13, 2009
Redfin to add reviews of participating practitioners
Online real estate Web site Redfin says it will begin posting consumer reviews of practitioners. Initially, 35 practitioners have agreed to participate. Redfin pulled their multiple listing service records since December 2007 and surveyed their clients via e-mail. The practitioners won't be able to edit or reject reviews.
Redfin says participants aren't worried-they assume the reviews will be good. If they get a new customer through the site, Redfin will take 30 percent of the practitioner's commission as a referral fee, then rebate half of what they take to the client. Redfin CEO Glenn Kelman says the company is monitoring the project carefully. 'We personally interviewed every partner agent to try to make sure the program was 100 percent slimeball free.'
Source: Los Angeles Times and National Association of Realtors(R)"
Redfin says participants aren't worried-they assume the reviews will be good. If they get a new customer through the site, Redfin will take 30 percent of the practitioner's commission as a referral fee, then rebate half of what they take to the client. Redfin CEO Glenn Kelman says the company is monitoring the project carefully. 'We personally interviewed every partner agent to try to make sure the program was 100 percent slimeball free.'
Source: Los Angeles Times and National Association of Realtors(R)"
Rates retreat; homeowners continue refinance frenzy
Mortgage rates moved downward last week after three straight weeks of increases. According to Freddie Mac, average rates for the 30-year fixed-rate mortgage (FRM) during the week ended February 12 dropped from 5.25 percent to 5.16 percent. Fees and points also moved down from 0.8 point to 0.7. 'Interest rates for 30-year fixed-rate mortgages are almost 1.5 percentage points below 2008's peak set on July 24, 2008, offering many homeowners an incentive to refinance,' said Frank Nothaft, Freddie Mac vice president and chief economist. 'This would translate into a monthly payment savings of around $188 on a $200,000 mortgage."
Foreclosures Slow Dramatically
January foreclosure filings decreased 10 percent in January 2009, according to RealtyTrac. Foreclosures were reported on 274,399 U.S. properties during the month, a 10 percent decrease from the previous month but still up 18 percent from January 2008. The report also shows one in every 466 U.S. housing units received a foreclosure filing in January.
'The extensive foreclosure efforts on the part of lenders and government agencies appear to have impacted the January numbers-particularly the Fannie Mae and Freddie Mac moratorium on all foreclosure sales that was extended through the end of January along with Florida's voluntary 45-day freeze on all new foreclosure actions and scheduling of foreclosure sales that was announced at the beginning of December,' said James J. Saccacio, chief executive officer of RealtyTrac. 'January REOs, which represent completed foreclosure sales to the foreclosing lender, were down 15 percent nationwide from the previous month. And in Florida overall foreclosure activity was down 20 percent from the previous month.
'The extensive foreclosure efforts on the part of lenders and government agencies appear to have impacted the January numbers-particularly the Fannie Mae and Freddie Mac moratorium on all foreclosure sales that was extended through the end of January along with Florida's voluntary 45-day freeze on all new foreclosure actions and scheduling of foreclosure sales that was announced at the beginning of December,' said James J. Saccacio, chief executive officer of RealtyTrac. 'January REOs, which represent completed foreclosure sales to the foreclosing lender, were down 15 percent nationwide from the previous month. And in Florida overall foreclosure activity was down 20 percent from the previous month.
IPhone app does mortgage rate searches | Real Estate and Technology News for Agents, Brokers and Investors
Mortgagebot LLC says a six-week-old iPhone app for its mortgage-shopping Web site Mortgage Marvel generated 30,000 rate searches in January.
The iPhone application program, released in December, delivers mortgage quotes in real time, and is available at no charge at the iPhone App Store. Users can enter property-related data points to obtain detailed mortgage quotes anonymously.
The application allows users to click through and apply for a loan on a lender's Web site, obtaining approval with full disclosures in 20 minutes or less, the company said.
Low interest rates have helped boost the number of rate searches at Mortgage Marvel by 321 percent in January compared to last fall, the company said."
The iPhone application program, released in December, delivers mortgage quotes in real time, and is available at no charge at the iPhone App Store. Users can enter property-related data points to obtain detailed mortgage quotes anonymously.
The application allows users to click through and apply for a loan on a lender's Web site, obtaining approval with full disclosures in 20 minutes or less, the company said.
Low interest rates have helped boost the number of rate searches at Mortgage Marvel by 321 percent in January compared to last fall, the company said."
Emerging Real Estate and Development Trends
by Peter L. Mosca
Giffels-Webster Engineers (GWE), a civil engineering firm with a 50-year industry reputation for its vision for today’s market and beyond, revealed its annual list of Top Five Real Estate and Development Trends. According to GWE, the hottest market-growth areas are:
1. Infrastructure Rehabilitation
2. Urban Redevelopment
3. Energy Generation
4. Life Sciences
5. Healthcare Expansion/Renovation
Intrinsic to each of the following trends is sustainable design and LEED-certified construction. Green elements will continue to be incorporated into projects as energy efficient, healthy spaces remain a top priority.
Infrastructure Rehabilitation
There has long been a need for public investment in the nation's aging infrastructure - roads, bridges and utilities. The new presidential administration has expressed a substantial commitment to this investment, which will generate significant work for public agencies, private design consultants and contractors.
Urban Redevelopment
Retail and residential re-development opportunities exist in urban areas, where the population and infrastructure foundation is already in place. This year, expect to see an increase in repurposing manufacturing plants and industrial buildings into new mixed-use developments. In addition, public investment to create connected, urban living spaces with walkable and bike-friendly communities are gaining popularity. Creating and improving light rail connections from cities to suburbs will also see investment.
Energy Generation
Government and private investment in energy generation, particularly of renewable sources, will provide opportunities for developers, construction managers and civil engineers as demand for clean energy grows. Many states, especially in the Midwest, are mandating that higher percentages of electricity come from renewable sources like wind energy, which will require site planning and manufacturing for thousands of new turbines.
Life Sciences
The life sciences industry is positioned for growth as a result of the aging baby-boomer population, increases in prescription drug spending and steady investment trends. Many companies are building or expanding research-and-development facilities, labs and office space for biotechnology, pharmaceuticals and diagnostics. It’s an opportunity to provide facilities that meet these companies’ needs now and can easily be scaled up for future expansion.
Healthcare Expansion/Renovation
Healthcare facilities must stay on top of technology developments and treatment needs to remain competitive; new advancements can quickly outdate existing facilities. An aging baby-boomer generation, coupled with a trend toward single-occupancy rooms, will drive many hospitals, nursing homes and hospice centers to undergo substantial renovations and expansions in 2009.
[Note: Giffels-Webster Engineers, Inc. is a civil engineering and land-development consulting firm serving public, private, and institutional clients throughout the United States with their infrastructure needs, www.giffelswebster.com.]
Published: February 11, 2009
Giffels-Webster Engineers (GWE), a civil engineering firm with a 50-year industry reputation for its vision for today’s market and beyond, revealed its annual list of Top Five Real Estate and Development Trends. According to GWE, the hottest market-growth areas are:
1. Infrastructure Rehabilitation
2. Urban Redevelopment
3. Energy Generation
4. Life Sciences
5. Healthcare Expansion/Renovation
Intrinsic to each of the following trends is sustainable design and LEED-certified construction. Green elements will continue to be incorporated into projects as energy efficient, healthy spaces remain a top priority.
Infrastructure Rehabilitation
There has long been a need for public investment in the nation's aging infrastructure - roads, bridges and utilities. The new presidential administration has expressed a substantial commitment to this investment, which will generate significant work for public agencies, private design consultants and contractors.
Urban Redevelopment
Retail and residential re-development opportunities exist in urban areas, where the population and infrastructure foundation is already in place. This year, expect to see an increase in repurposing manufacturing plants and industrial buildings into new mixed-use developments. In addition, public investment to create connected, urban living spaces with walkable and bike-friendly communities are gaining popularity. Creating and improving light rail connections from cities to suburbs will also see investment.
Energy Generation
Government and private investment in energy generation, particularly of renewable sources, will provide opportunities for developers, construction managers and civil engineers as demand for clean energy grows. Many states, especially in the Midwest, are mandating that higher percentages of electricity come from renewable sources like wind energy, which will require site planning and manufacturing for thousands of new turbines.
Life Sciences
The life sciences industry is positioned for growth as a result of the aging baby-boomer population, increases in prescription drug spending and steady investment trends. Many companies are building or expanding research-and-development facilities, labs and office space for biotechnology, pharmaceuticals and diagnostics. It’s an opportunity to provide facilities that meet these companies’ needs now and can easily be scaled up for future expansion.
Healthcare Expansion/Renovation
Healthcare facilities must stay on top of technology developments and treatment needs to remain competitive; new advancements can quickly outdate existing facilities. An aging baby-boomer generation, coupled with a trend toward single-occupancy rooms, will drive many hospitals, nursing homes and hospice centers to undergo substantial renovations and expansions in 2009.
[Note: Giffels-Webster Engineers, Inc. is a civil engineering and land-development consulting firm serving public, private, and institutional clients throughout the United States with their infrastructure needs, www.giffelswebster.com.]
Published: February 11, 2009
Real Estate Outlook: Encouraging Signs
by Kenneth R. Harney
Could the tide be turning for real estate?
It's probably premature to make that call, but you can't ignore the encouraging signs -- especially when they come in multiples.
First we saw a surprising 6.5 percent jump in home sales for December. Now we've just gotten the latest Pending Home Sales Index, and it's up 6.3 percent, thanks to double digit gains of 13 percent in the Midwest and the South.
The index is based on signed contracts for home sales that haven't gone to closing, but that are scheduled to settle in the coming two or three months.
The National Association of Realtors collects the data from Multiple Listing Services around the country, and most economists accept the index as a reliable gauge of where we're headed in housing activity.
Dr. Lawrence Yun, chief economist for the National Association of Realtors, attributed the upward movement to "buyers responding to lower home prices and interest rates" that have improved the affordability equation to its most favorable level in 39 years.
Sales in the coming months might also be powered by something no index can measure: Congress is likely to improve last year's $7,500 home buyer tax credit by turning it into a nonrepayable incentive for new sales this year -- all as part of the stimulus package on Capitol Hill.
Though it's impossible to predict how many more home sales a true credit might stimulate -- one that doesn't have to be paid back to the government like the 2008 version -- industry estimates range anywhere from several hundred thousand upward, provided the expiration date runs through this coming December.
On other economic fronts last week, reports of tens of thousands of industry layoffs definitely won't help housing, but new numbers on inventories of unsold homes just might be a plus. Total homes for sale on the market nationwide dropped nearly 18 percent last month to the lowest level since May of 2007.
Mortgage rates inched up slightly last week, according to the Mortgage Bankers Association, with thirty year fixed rate loans averaging 5.3 percent compared to 5.2 percent the week before. That's up a notch, but it's still close to 40 year historic lows.
As we've said before on this program: Keep your eyes open for the little statistical improvements in the market that often get ignored by the media: Once they start mounting up, month after month, you'll know we're in turnaround mode.
We're not there yet, but we're headed in a promising direction.
Published: February 10, 2009
Could the tide be turning for real estate?
It's probably premature to make that call, but you can't ignore the encouraging signs -- especially when they come in multiples.
First we saw a surprising 6.5 percent jump in home sales for December. Now we've just gotten the latest Pending Home Sales Index, and it's up 6.3 percent, thanks to double digit gains of 13 percent in the Midwest and the South.
The index is based on signed contracts for home sales that haven't gone to closing, but that are scheduled to settle in the coming two or three months.
The National Association of Realtors collects the data from Multiple Listing Services around the country, and most economists accept the index as a reliable gauge of where we're headed in housing activity.
Dr. Lawrence Yun, chief economist for the National Association of Realtors, attributed the upward movement to "buyers responding to lower home prices and interest rates" that have improved the affordability equation to its most favorable level in 39 years.
Sales in the coming months might also be powered by something no index can measure: Congress is likely to improve last year's $7,500 home buyer tax credit by turning it into a nonrepayable incentive for new sales this year -- all as part of the stimulus package on Capitol Hill.
Though it's impossible to predict how many more home sales a true credit might stimulate -- one that doesn't have to be paid back to the government like the 2008 version -- industry estimates range anywhere from several hundred thousand upward, provided the expiration date runs through this coming December.
On other economic fronts last week, reports of tens of thousands of industry layoffs definitely won't help housing, but new numbers on inventories of unsold homes just might be a plus. Total homes for sale on the market nationwide dropped nearly 18 percent last month to the lowest level since May of 2007.
Mortgage rates inched up slightly last week, according to the Mortgage Bankers Association, with thirty year fixed rate loans averaging 5.3 percent compared to 5.2 percent the week before. That's up a notch, but it's still close to 40 year historic lows.
As we've said before on this program: Keep your eyes open for the little statistical improvements in the market that often get ignored by the media: Once they start mounting up, month after month, you'll know we're in turnaround mode.
We're not there yet, but we're headed in a promising direction.
Published: February 10, 2009
Homeowners Face Reality, Remain Optimistic
Release date: 02/09/09
Although more than half of those surveyed in Zillow.com's Q4 Homeowner Confidence Survey believe their own home lost value in 2008, more than two-thirds appear to believe that the worst may be over.
According to the fourth-quarter-2008 survey, some 70 percent of those surveyed believe their home's value will either increase or stay the same in the first six months of 2009, while only 30 percent expect a decrease in value.
Fifty-seven percent believe their home last value last year, up from 38 percent of those surveyed in the second quarter of 2008. In reality, 76 percent of all U.S. homes lost value in 2008, according to analysis of the Zillow Q4 Real Estate Market Reports.
With these new findings, Zillow's Home Value Misperception Index shrunk to 10 in the fourth quarter, from 16 in the third and 32 in the second quarter. An index of zero would mean homeowners' perceptions were in line with actual values.
"It's clear that the 'not my house' sentiment that was so prevalent in earlier surveys is waning, and homeowners are opening their eyes to the unfortunate reality of significant losses in home values across most of the country," said Dr. Stan Humphries, Zillow's vice president of data and analytics, in a statement. "That said, there's a curious optimism for homeowners when asked about the future -- most seem to believe we've hit a bottom and the worst has passed. Unfortunately, the data tells another story. With year-over-year home value losses continuing to accelerate, most areas of the country will see housing values get worse before they begin to stabilize."
With a Misperception Index of only 3 -- down from 20 in the third quarter -- the perception of homeowners in the Northeast was closest to reality. Well over half (57 percent) of Northeastern homeowners believe their own home's value declined during 2008, while 20 percent believed it stayed the same. According to Zillow's fourth-quarter data, 71 percent of homes in the Northeast declined in value during 2008.
Homeowners in the West, where values were hardest-hit, lost some of their optimism in the fourth quarter, but home values continued to edge downward, leaving Western homeowners' perceptions among the farthest from reality with a Misperception Index of 13 (the same as last quarter). Southerners' perceptions were farthest from reality, with a Misperception Index of 14.
Source: Inman News
Although more than half of those surveyed in Zillow.com's Q4 Homeowner Confidence Survey believe their own home lost value in 2008, more than two-thirds appear to believe that the worst may be over.
According to the fourth-quarter-2008 survey, some 70 percent of those surveyed believe their home's value will either increase or stay the same in the first six months of 2009, while only 30 percent expect a decrease in value.
Fifty-seven percent believe their home last value last year, up from 38 percent of those surveyed in the second quarter of 2008. In reality, 76 percent of all U.S. homes lost value in 2008, according to analysis of the Zillow Q4 Real Estate Market Reports.
With these new findings, Zillow's Home Value Misperception Index shrunk to 10 in the fourth quarter, from 16 in the third and 32 in the second quarter. An index of zero would mean homeowners' perceptions were in line with actual values.
"It's clear that the 'not my house' sentiment that was so prevalent in earlier surveys is waning, and homeowners are opening their eyes to the unfortunate reality of significant losses in home values across most of the country," said Dr. Stan Humphries, Zillow's vice president of data and analytics, in a statement. "That said, there's a curious optimism for homeowners when asked about the future -- most seem to believe we've hit a bottom and the worst has passed. Unfortunately, the data tells another story. With year-over-year home value losses continuing to accelerate, most areas of the country will see housing values get worse before they begin to stabilize."
With a Misperception Index of only 3 -- down from 20 in the third quarter -- the perception of homeowners in the Northeast was closest to reality. Well over half (57 percent) of Northeastern homeowners believe their own home's value declined during 2008, while 20 percent believed it stayed the same. According to Zillow's fourth-quarter data, 71 percent of homes in the Northeast declined in value during 2008.
Homeowners in the West, where values were hardest-hit, lost some of their optimism in the fourth quarter, but home values continued to edge downward, leaving Western homeowners' perceptions among the farthest from reality with a Misperception Index of 13 (the same as last quarter). Southerners' perceptions were farthest from reality, with a Misperception Index of 14.
Source: Inman News
Transfer Tax Defeated in Avery County After All
Release date: 02/10/09
Upon further review, North Carolina homeowners remained undefeated with regard to a real estate transfer tax.
On a snowy Tuesday last week in a special election in Avery County, voters failed to pass the measure by 35 votes. The final tally, as certified today by the county’s Board of Elections, was 1,449 opposed versus 1,414 who supported the measure.
Election night results initially indicated that the transfer tax had passed by 25 votes (1,434 for; 1,409 against). But Johnny A. Canupp, chair of the Avery County Board of Elections, said the canvas had caught errors from two precincts. “The canvas of the votes caught the errors,” he said. “We wanted to make sure the total vote is correct.”
The result in Avery County marks the 24th time in 24 attempts statewide that the transfer tax — also known as the Home Tax — has failed. A recent statewide poll shows that 83 percent of the public opposes the tax.
The transfer tax option for counties has been in place since the 2007 legislative session when lawmakers in Raleigh rolled it into the budget bill. Since then, homeowners across the state have fought vigilantly – and successfully – against the tax.
“Homeowners by and large are overwhelmingly against the transfer tax,” said Sandra O’Connor, 2009 president of the NC Association of REALTORS®. “We’ll continue to oppose the real estate transfer tax because it is fundamentally unfair, and has negative implications for homeowners. Basically, it’s a tax for the privilege of selling your own property. It doesn’t impact newcomers, as some proponents claim. It hurts the sellers – many who have lived on their property for years and have paid property taxes all that time.”
In each of the previous 23 elections, the transfer tax was defeated by overwhelming margins. But a snowstorm that gripped the county on Election Day led to a smaller-than-expected voter turnout of only 22 percent. The local grassroots organization that opposed the measure – Avery County Property Owners Against the Transfer Tax – felt the inclement weather contributed to the close vote.
“Some people have asked if there will be a recount,” Canupp said. “Under North Carolina law, a recount can be conducted if the election result is no more than 1 percent; that would mean the difference would have to be 29 votes. The measure failed by 35 votes, so there will be no recount.”
Upon further review, North Carolina homeowners remained undefeated with regard to a real estate transfer tax.
On a snowy Tuesday last week in a special election in Avery County, voters failed to pass the measure by 35 votes. The final tally, as certified today by the county’s Board of Elections, was 1,449 opposed versus 1,414 who supported the measure.
Election night results initially indicated that the transfer tax had passed by 25 votes (1,434 for; 1,409 against). But Johnny A. Canupp, chair of the Avery County Board of Elections, said the canvas had caught errors from two precincts. “The canvas of the votes caught the errors,” he said. “We wanted to make sure the total vote is correct.”
The result in Avery County marks the 24th time in 24 attempts statewide that the transfer tax — also known as the Home Tax — has failed. A recent statewide poll shows that 83 percent of the public opposes the tax.
The transfer tax option for counties has been in place since the 2007 legislative session when lawmakers in Raleigh rolled it into the budget bill. Since then, homeowners across the state have fought vigilantly – and successfully – against the tax.
“Homeowners by and large are overwhelmingly against the transfer tax,” said Sandra O’Connor, 2009 president of the NC Association of REALTORS®. “We’ll continue to oppose the real estate transfer tax because it is fundamentally unfair, and has negative implications for homeowners. Basically, it’s a tax for the privilege of selling your own property. It doesn’t impact newcomers, as some proponents claim. It hurts the sellers – many who have lived on their property for years and have paid property taxes all that time.”
In each of the previous 23 elections, the transfer tax was defeated by overwhelming margins. But a snowstorm that gripped the county on Election Day led to a smaller-than-expected voter turnout of only 22 percent. The local grassroots organization that opposed the measure – Avery County Property Owners Against the Transfer Tax – felt the inclement weather contributed to the close vote.
“Some people have asked if there will be a recount,” Canupp said. “Under North Carolina law, a recount can be conducted if the election result is no more than 1 percent; that would mean the difference would have to be 29 votes. The measure failed by 35 votes, so there will be no recount.”
Freddie Mac: rates on 30-year fixed mortgages fall
The Associated Press
Posted: Thursday, Feb. 12, 2009
McLEAN, Va. Rates on 30-year-fixed mortgages fell this week, offering homeowners a chance to refinance their loans, Freddie Mac said Thursday.
The average rate on a 30-year fixed mortgage dropped to 5.16 percent this week from 5.25 percent last week. A year ago, the 30-year, fixed-rate mortgage averaged 5.72 percent.
Frank Nothaft, Freddie Mac's chief economist, said interest rates for 30-year fixed-rate mortgages are almost 1.5 percentage points below last year's peak set in late July, 'offering many homeowners an incentive to refinance.'
The new rate translates into a monthly payment savings of about $188 on a $200,000 loan, Nothaft said.
Average rates for 30-year-fixed mortgages had been rising since hitting a record low of 4.96 percent a month ago, a decline attributed to the Federal Reserve's move to buy $500 billion in mortgage-backed securities to spur lending by banks.
In late January, Freddie Mac reported that U.S. homeowners took out $17.5 billion in home equity in the fourth quarter by refinancing their mortgages, the lowest amount since the first quarter of 2001.
The average rate this week on a 15-year fixed-rate mortgage was 4.81 percent, Freddie Mac sai"
Posted: Thursday, Feb. 12, 2009
McLEAN, Va. Rates on 30-year-fixed mortgages fell this week, offering homeowners a chance to refinance their loans, Freddie Mac said Thursday.
The average rate on a 30-year fixed mortgage dropped to 5.16 percent this week from 5.25 percent last week. A year ago, the 30-year, fixed-rate mortgage averaged 5.72 percent.
Frank Nothaft, Freddie Mac's chief economist, said interest rates for 30-year fixed-rate mortgages are almost 1.5 percentage points below last year's peak set in late July, 'offering many homeowners an incentive to refinance.'
The new rate translates into a monthly payment savings of about $188 on a $200,000 loan, Nothaft said.
Average rates for 30-year-fixed mortgages had been rising since hitting a record low of 4.96 percent a month ago, a decline attributed to the Federal Reserve's move to buy $500 billion in mortgage-backed securities to spur lending by banks.
In late January, Freddie Mac reported that U.S. homeowners took out $17.5 billion in home equity in the fourth quarter by refinancing their mortgages, the lowest amount since the first quarter of 2001.
The average rate this week on a 15-year fixed-rate mortgage was 4.81 percent, Freddie Mac sai"
Friday, February 6, 2009
Mortgage rates fell back under 5.5 percent this week
The benchmark 30-year fixed-rate mortgage fell 11 basis points, to 5.48 percent, according to the Bankrate.com national survey of large lenders. The mortgages in last week's survey had an average total of 0.29 discount and origination points. One year ago, the mortgage index was 5.88 percent; four weeks ago, it was 5.64 percent."
Monday, February 2, 2009
Mortgage Rates Hold Steady
The 30-year fixed-rate mortgage averaged 5.10 percent with an average 0.7 point for the week ending January 29, 2009, down from last week when it averaged 5.12 percent according to Freddie Mac. Last year at this time, the 30-year FRM averaged 5.68 percent.
Make banks bid for your money
Problem: You're too nervous to invest in the stock market, but your bank is offering paltry yields on CDs.
Solution: Auction your cash to the highest bidder. At MoneyAisle.com, more than 100 small and midsize banks compete for consumer deposits through live auctions. When a customer comes to the site and asks for the terms of a CD or high-yield savings account, the banks bid against one another – through automated auction software that runs on the Web site – to win the deposit. The cost is free to consumers, and you don't have to commit to investing anything before you see the results of an auction. Participating banks, which are all FDIC-insured, are screened by an independent bank-rating agency to filter out the riskiest banks.
Savers can also find high-yield CDs with brokered CDs, which are offered by banks and brokerage firms around the country and typically sold through brokerage firms and financial intermediaries. As the big brokerage firms expand their deposit business, many are offering attractive yields to lure buyers. Keep in mind that brokered CDs have different rules. If you cash out before they mature, you may lose some"
Solution: Auction your cash to the highest bidder. At MoneyAisle.com, more than 100 small and midsize banks compete for consumer deposits through live auctions. When a customer comes to the site and asks for the terms of a CD or high-yield savings account, the banks bid against one another – through automated auction software that runs on the Web site – to win the deposit. The cost is free to consumers, and you don't have to commit to investing anything before you see the results of an auction. Participating banks, which are all FDIC-insured, are screened by an independent bank-rating agency to filter out the riskiest banks.
Savers can also find high-yield CDs with brokered CDs, which are offered by banks and brokerage firms around the country and typically sold through brokerage firms and financial intermediaries. As the big brokerage firms expand their deposit business, many are offering attractive yields to lure buyers. Keep in mind that brokered CDs have different rules. If you cash out before they mature, you may lose some"
Remodeling Projects That Add Value
According to Remodeling magazine's 2008-2009 Cost vs. Value Report, even despite the challenging economy, investing in your home still pays off at resale. Based on interviews with real estate professionals throughout the country, the Remodeling report found that homeowners could expect to recoup an average of 67.3 percent of their investment in 30 different home improvement projects.
Exterior projects that boost curb appeal and kitchen remodels generally get the biggest bang for the homeowner's buck. The right remodeling project, when done well, also has the potential to make for a quicker sale and reduce negotiations with buyers over perceived shortcomings.
Some of the projects that are paying off the most nationally this year at resale include the following. The number in parentheses represents the percentage of the project's cost that is recovered.
* Upscale fiber cement siding (86.7 percent)
* Midrange wood deck (81.8 percent)
* Midrange vinyl siding (80.7 percent)
* Midrange minor kitchen remodel (79.5 percent)
* Upscale vinyl window replacement (79.2 percent)
* Midrange major kitchen remodel (76 percent)
Exterior projects that boost curb appeal and kitchen remodels generally get the biggest bang for the homeowner's buck. The right remodeling project, when done well, also has the potential to make for a quicker sale and reduce negotiations with buyers over perceived shortcomings.
Some of the projects that are paying off the most nationally this year at resale include the following. The number in parentheses represents the percentage of the project's cost that is recovered.
* Upscale fiber cement siding (86.7 percent)
* Midrange wood deck (81.8 percent)
* Midrange vinyl siding (80.7 percent)
* Midrange minor kitchen remodel (79.5 percent)
* Upscale vinyl window replacement (79.2 percent)
* Midrange major kitchen remodel (76 percent)
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