With residential prices falling, it's hard to believe there are some markets that still cost a small fortune. Monte Carlo is No. 1 in the Global Property Guide's list of World's Most Expensive Residential Real Estate Markets 2009, more than twice as expensive, at $45,000 per square meter, as the runners up-central Moscow and London. Prime central Moscow's $20,853 per square meter price tag slightly outpaces core Prime London's $20,756 per square meter.
Here are the top 10 most expensive property markets:
1. Monte Carlo
2. Moscow
3. London
4. Tokyo
5. Hong Kong
6. New York
7. Paris
8. Singapore
9. Rome
10. Mumbai
For global bargain hunters, there are several places where property prices are relatively cheap. The top 5 least expensive property markets are:
1. Cairo
2. Bangalore
3. Concepción
4. Quito
5. Chengdu
Source: Global Property Guide"
Wednesday, March 18, 2009
NAR wins battle to block banks from being in real estate brokerage
After an eight-year fight, the battle for banks to engage in real estate brokerage ended quietly last week, according to American Banker with NAR declaring victory.
Congress passed an appropriations bill that would permanently ban the Treasury Department and Federal Reserve Board from finalizing a 2000 proposal to let banks into the brokerage business. The American Bankers Association had led the crusade against the provision for years and had succeeded in changing it to a series of one-year delays.
REAL Trends Comment: We opposed NAR's position on this issue and continue to think that it is ill considered and will result in decreasing the value of real estate firms in the future. Not many national banks are in any hurry to invest in brokerage at this time. What the bill insures is that were banks to enter real estate services they won't have to invest in the legacy infrastructure of the brokerage business and not be able to be paid on a commissionable basis. It most certainly does not prohibit financial institutions that are not Federally chartered or those who simply charge access fees from competing in new and unexpected ways."
Congress passed an appropriations bill that would permanently ban the Treasury Department and Federal Reserve Board from finalizing a 2000 proposal to let banks into the brokerage business. The American Bankers Association had led the crusade against the provision for years and had succeeded in changing it to a series of one-year delays.
REAL Trends Comment: We opposed NAR's position on this issue and continue to think that it is ill considered and will result in decreasing the value of real estate firms in the future. Not many national banks are in any hurry to invest in brokerage at this time. What the bill insures is that were banks to enter real estate services they won't have to invest in the legacy infrastructure of the brokerage business and not be able to be paid on a commissionable basis. It most certainly does not prohibit financial institutions that are not Federally chartered or those who simply charge access fees from competing in new and unexpected ways."
New-home construction logs unexpected gain
WASHINGTON The number of new housing projects that builders broke ground on in February rose sharply, defying economists' forecasts for yet another drop in activity.
The Commerce Department reported Tuesday that construction of new homes and apartments jumped 22.2 percent from January to a seasonally adjusted annual rate of 583,000 units. Economists were expecting construction to drop to a pace of around 450,000 units.
February's pickup was led by a big increase in apartment construction.
By region, all parts of the country reported an increase in overall housing construction, except for the West, which led the housing boom and has been hard hit by the bust.
Some economists said the new housing figures offered a glimmer of hope.
"While it may be premature to call an absolute bottom in residential construction, we are clearly getting close," said Adam York, economist at Wachovia.
Overall housing construction activity fell to a pace of 477,000 units in January, according to revised figures. That was a little higher than first reported but still marked a record low.
Applications for building permits, considered a reliable sign of future activity, also rose in February by 3 percent to an annual rate of 547,000. Economists were expecting permits to fall to a pace of 500,000 units.
Even with February's rare burst of activity, housing construction is down a whopping 47.3 percent from a year ago.
"This is a temporary rebound, not a recovery," said Ian Shepherdson, chief U.S. economist at High Frequency Economics.
The collapse of the once high-flying housing market has been devastating to the United States' economic health.
Its spreading fallout has contributed to big pullbacks by consumers and businesses alike, plunging the economy into a recession now in its second year.
The Obama administration has announced a $75 billion program to stem skyrocketing home foreclosures, which have dumped even more properties on an already crippled market.
More than 2 million American homeowners faced foreclosure proceedings last year, and that number could soar as high as 10 million in the coming years depending on the severity of the recession, according to a report last month by Credit Suisse.
Home mortgages are harder to come by because of the credit crisis and unemployment is at a quarter-century peak of 8.1 percent, factors that will make it difficult for the depressed housing market to snap back to full health.
Builders aren't optimistic that will happen any time soon.
The National Association of Home Builders' housing market index was flat in March at a reading of nine. That was one point above the all-time low reached in January. Readings lower than 50 indicate negative sentiment about the market. The index has been below 10 since November, reflecting the toughest market conditions in a generation.
Tighter lending standards for home mortgages, rising defaults and fear about the housing market's future have sidelined buyers, an absence felt acutely by homebuilders such as D.R. Horton Inc., Pulte Homes Inc. and Centex Corp.
Monday, March 16, 2009
Homebuilder sentiment index unchanged in March | CharlotteObserver.com
LOS ANGELES A key gauge of homebuilders' confidence remained near historic lows in March, as builders saw a drop in prospective homebuyers visiting model homes amid rising job losses and economic fears, according to a survey released Monday.
The National Association of Home Builders/Wells Fargo housing market index stood at nine, one point off the all-time low hit in January.
The report reflects a survey of 384 residential developers nationwide, tracking builders' perceptions of market conditions. Index readings lower than 50 indicate negative sentiment about the market. The index has been below 10 since November, reflecting the toughest market conditions in a generation.
Scores of employers have announced broad layoffs in recent months giving many would-be homebuyers pause. Builders say strict mortgage requirements are also stymieing some potential sales.
'The economy continues to be the main drag on home sales activity right now, in terms of consumer confidence across most of the country,' said David Crowe, chief economist for the Washington-based trade association.
Regionally, builder confidence rose by one point in the Northeast to nine. The index remained unchanged from last month in the Mi"
The National Association of Home Builders/Wells Fargo housing market index stood at nine, one point off the all-time low hit in January.
The report reflects a survey of 384 residential developers nationwide, tracking builders' perceptions of market conditions. Index readings lower than 50 indicate negative sentiment about the market. The index has been below 10 since November, reflecting the toughest market conditions in a generation.
Scores of employers have announced broad layoffs in recent months giving many would-be homebuyers pause. Builders say strict mortgage requirements are also stymieing some potential sales.
'The economy continues to be the main drag on home sales activity right now, in terms of consumer confidence across most of the country,' said David Crowe, chief economist for the Washington-based trade association.
Regionally, builder confidence rose by one point in the Northeast to nine. The index remained unchanged from last month in the Mi"
Recession could end this year, Bernanke says | CharlotteObserver.com
By Jeannine Aversa
WASHINGTON America's recession “probably” will end this year if the government succeeds in bolstering the banking system, Federal Reserve Chairman Ben Bernanke said Sunday in a rare television interview.
In carefully hedged remarks in a taped interview with CBS's “60 Minutes,” Bernanke expressed a bit more optimism that this could be done.
Still, Bernanke stressed – as he did to Congress last month – that the prospects for the recession ending this year and a recovery taking root next year hinge on a difficult task: getting banks to lend more freely again and getting the financial markets to work more normally.
“We've seen some progress in the financial markets, absolutely,” Bernanke said. “But until we get that stabilized and working normally, we're not going to see recovery.
“But we do have a plan. We're working on it. And I do think that we will get it stabilized, and we'll see the recession coming to an end probably this year.”
Even if the recession, which began in December 2007, ends this year, the unemployment rate will keep climbing past the current quarter-century high of 8.1 percent, Bernanke said.
Bernanke said, though, that the U.S. has averted the risk of plunging into a depression. “I think we've gotten past that.”
When the financial crisis intensified last fall, Bernanke and Bush Treasury Secretary Henry Paulson rushed to Capitol Hill for help. That led to swift enactment of a $700 billion bailout package in October.
Looking back, Bernanke said the world came close to a financial meltdown. Asked how close, Bernanke responded: “It was very close.”
Bernanke admitted that the Fed could have done a better job of overseeing banks. Critics say lax regulatory oversight contributed to the crisis.
Bernanke said he believes all the big banks the Fed regulates are solvent. Big banks won't fail under his watch, Bernanke said – though, if necessary, the government should try to “wind it down in a safe way.”
Thursday, March 12, 2009
Convention hall, hotel a go at lake
Resort magnate John Q. Hammons to open Embassy Suites at Langtree development.
MOORESVILLE John Q. Hammons Hotels & Resorts plans to begin construction this year on a 300-room, 12-story Embassy Suites hotel and 75,000-square-foot convention center off Interstate 77's Exit 32.
Construction should start in late summer or early fall at the planned Langtree at the Lake development.
Hammons, 90, said Wednesday that he bought the land for the project four years ago because it is near the Lowe's Companies national headquarters off the soon-to-open exit.
The project also will be close to the nearly complete Interstate 485 beltway and the I-77/I-40 interchange in Statesville, Hammons said.
Langtree at the Lake partner Rick Howard said an east-west connector road (joining Langtree Road with N.C. 115 and N.C. 3) eventually will link the development to I-85 in Cabarrus County.
Hammons' Lake Norman project represents an investment of $75million to $85million, he said after a lunch meeting where he updated Mooresville and Iredell County officials on his plans.
“This will be an economic spark to our community,” said Rick Howard's son, Brad Howard of Langtree at the Lake.
Despite the economic downturn, Hammons has an easier time obtaining financing because of his longstanding reputation in the industry, said Scott Tarwater, executive vice president for development at the John Q. Hammons Hotels, based in Springfield, Mo.
Weather permitting, the Lake Norman project should open 16 to 18 months from the start of work, Tarwater said.
Monday, March 9, 2009
Zillow reports loan requests surge
Over the past three months, as mortgage rates dropped to their lowest levels in years, consumer interest in refinancing soared according to Zillow.com. More than 70,000 loan requests were submitted from borrowers on Zillow Mortgage Marketplace in the December through February time period, with the average number of daily loan requests up 142 percent in this same period versus November 2008. Refinancing requests accounted for more than 60 percent of all consumer loan requests over this three-month period.
Mortgage rates hold steady
A lousy week on Wall Street didn't have much effect on mortgage rates, according to Bankrate.com. Stock prices fell to 12-year lows. Normally, a giant slide on stock prices is met by a plunge in mortgage rates-not this time. The benchmark 30-year, fixed-rate mortgage was unchanged, at 5.41 percent, according to the Bankrate.com national survey of large lenders. Source: Bankrate.com
Homes.com releases iPhone application
Homes.com releases iPhone application Homes.com launched its new real estate search application which features national property searches, maps, driving directions and property details. The free application can be downloaded from the Apple iTunes Store by simply searching the keyword "Homes.com."
Fannie Mae / freddie Mac launch new initiatives
Two new initiatives from Fannie Mae-Home Affordable Refinance and Home Affordable Modification-are now available to its servicers and borrowers as part of the Obama Administration's "Making Home Affordable" program. The two initiatives hope to significantly expand the numbers of borrowers who can refinance or modify their mortgages to a payment that is affordable now and into the future. For more details about the programs, click here. Freddie Mac launched its new REO Rental Initiative giving qualified tenants and former owners the option to lease their recently foreclosed properties on a month-to-month basis. Freddie Mac also will continue to suspend all eviction actions until April 1, 2009 to ensure there is ample time for current occupants to learn about the options available to them under the new initiative.
Thursday, March 5, 2009
Fed, Treasury have new lending plan | CharlotteObserver.com
Hoping to vault over the frozen credit markets and directly reach consumers and businesses, the Federal Reserve and Treasury Department on Tuesday unveiled a $200billion plan they hope will spur up to $1trillion in new lending.
If the program works, it could allow consumers and businesses with good credit histories to borrow more freely, even amid the recession.
Treasury and the Fed will provide $200 billion in financing to encourage investors to purchase top-rated loans whose underlying collateral is pools of car loans, student loans, credit-card debt and loans to small businesses.
The Term Asset-Backed Lending Facility isn't a magic bullet. It will apply only to the safest of loans and to the healthiest of financial institutions, so it can't fix all of what ails the credit markets and the broader economy.
The Fed seeks, however, to show investors that it's safe to get back in the water. The plan builds on a similar effort last year to bypass banks and have the Fed buy the short-term debt issued by corporations. This has allowed big U.S. corporations to avert a funding crisis while the credit markets remained seized up.
“Think about it as the Fed in the period of the crisis being not a central bank but a commercial bank … and doing the functional equivalent of buying loans."
If the program works, it could allow consumers and businesses with good credit histories to borrow more freely, even amid the recession.
Treasury and the Fed will provide $200 billion in financing to encourage investors to purchase top-rated loans whose underlying collateral is pools of car loans, student loans, credit-card debt and loans to small businesses.
The Term Asset-Backed Lending Facility isn't a magic bullet. It will apply only to the safest of loans and to the healthiest of financial institutions, so it can't fix all of what ails the credit markets and the broader economy.
The Fed seeks, however, to show investors that it's safe to get back in the water. The plan builds on a similar effort last year to bypass banks and have the Fed buy the short-term debt issued by corporations. This has allowed big U.S. corporations to avert a funding crisis while the credit markets remained seized up.
“Think about it as the Fed in the period of the crisis being not a central bank but a commercial bank … and doing the functional equivalent of buying loans."
Obama administration launches housing plan
The Obama administration kicked off a new program Wednesday that's designed to help up to 9 million borrowers stay in their homes through refinanced mortgages or loans that are modified to lower monthly payments.
The Treasury Department released detailed guidelines designed to let the lending industry know how to enroll borrowers in the program announced last month.
"It is imperative that we continue to move with speed to help make housing more affordable and help arrest the damaging spiral in our housing markets," Treasury Secretary Timothy Geithner said in a statement.
The administration, launching what it calls the "Making Home Affordable" initiative, said that borrowers will have to provide their most recent tax return and two pay stubs, as well as an "affidavit of financial hardship" to qualify for the $75 billion loan modification program, which runs through 2012.
Borrowers are only allowed to have their loans modified once, and the program only applies for loans made on Jan. 1 2009 or earlier. Up to 4 million borrowers are expected to qualify. Mortgages for single-family properties that are worth more than $729,750 are excluded.
Separately, up to 5 million borrowers who have mortgages held by government controlled mortgage finance giants Fannie Mae and Freddie Mac should be eligible to refinance through June 2010.
Meanwhile action to put in place another part of Obama's housing plan is expected soon on Capitol Hill.
House Democrats, under pressure from a group of moderates in their ranks and the banking lobby, agreed Tuesday to narrow legislation that gives bankruptcy judges the power to force lenders to lower the mortgage interest rate or principal balance.
Under the terms of the agreement, judges would have to consider whether a homeowner had been offered a reasonable deal by the bank to rework his or her home loan before seeking help in bankruptcy court. Borrowers also would have a responsibility to prove that they tried to modify their mortgages.
The compromise legislation was expected to come to a vote in the House as early as Thursday.
Tuesday, February 24, 2009
2003-2008 Home Sales Data for Charlotte Metro Zip Codes
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
http://www.charlotteobserver.com/661/story/501993.html
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)
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