New-home construction and building permits — a future gauge of construction — surged last month, slowly helping to pull the new-home market out of one of its worst years for home building.
Builders broke ground on more homes in November, a 9.3 percent increase over October, reaching the highest level since April 2010, the Commerce Department reported Tuesday. Year-over-year, new-home starts were up 24.3 percent in November.
Home construction increased to a seasonally adjusted annual rate of 685,000 homes in November. However, while it’s an improvement, the rate is still below the 1.2 million home pace that economists consider healthy for the new-home sector.
November’s increase was mostly driven by construction of multi-family homes with at least two units, which soared 25.3 percent in November. Construction of single-family homes increased 2.3 percent for the month.
Building permits jumped 5.7 percent in November, the highest increase since March 2010, with the increase mostly driven by apartment construction permits.
Builders Feeling More Confident
Meanwhile, for the third consecutive month, builder confidence in the new-home market continued to edge up, according to the National Association of Home Builders/Wells Fargo Housing Market Index for December. The index is at its highest point since May 2010.
While the index reached 21 in December, it is still far below 50, a reading which indicates more builders view conditions as good rather than poor. The index hasn’t reached that point since the housing boom in April 2006.
“While builder confidence remains low, the consistent gains registered over the past several months are an indication that pockets of recovery are slowly starting to emerge in scattered housing markets," Bob Nielsen, chairman of the National Association of Home Builders, said in a statement. "However, the difficulties that both builders and buyers continue to experience in accessing credit for new homes are holding back potential sales even in areas where economic conditions are improving."
Source: “Apartment Construction Spurs 9.3% Jump in Housing Starts, But Level Remains Low,” Associated Press (Dec. 20, 2011); “U.S. Nov. Housing Starts +9.3% to 685K; Consensus +0.3%,” Dow Jones International News (Dec. 20, 2011); and National Association of Home Builders
Read More:
New-Home Building Soars 15% in September
Tuesday, December 20, 2011
Tuesday, November 15, 2011
NAR: Gradual recovery for housing and economy in 2012
ANAHEIM, Calif. – Nov. 15, 2011 – Although the housing market struggled to maintain an even footing in 2011, gradual improvement is expected in 2012 and beyond, according to projections at the 2011 Realtors® Conference & Expo.
Lawrence Yun, chief economist of the National Association of Realtors (NAR), said home sales should be stronger. “Tight mortgage credit conditions have been holding back homebuyers all year, and consumer confidence has been shaky recently,” he said. “Nonetheless, there is a sizeable pent-up demand based on population growth, employment levels and a doubling-up phenomenon that can’t continue indefinitely. This demand could quickly stimulate the market when conditions improve.”
Yun projects growth in Gross Domestic Product to be 1.8 percent this year, then rising moderately at a rate of 2.2 percent in 2012. With job growth of 1.7 to 2.2 million next year, the unemployment rate is expected to decline to 8.7 percent by the second half of 2012. Mortgage interest rates should gradually rise from recent record lows and reach 4.5 percent by the middle of 2012.
“Housing affordability conditions, based on the relationship between median home prices, mortgage interest rates, and median family income, have been at a record high this year,” Yun said. “Very favorable affordability conditions will dominate next year as well, which will probably be the second best year on record dating back to 1970. Our hope is that credit restrictions will ease and allow more homebuyers to take advantage of current opportunities.”
Existing-home sales are forecast to edge up about 1 percent this year, and then rise another 4 to 5 percent in 2012. Based on NAR’s current projection model, existing-home sales would total 4.96 million in 2011.
Housing data
NAR says it is benchmarking its existing-home sales statistics, and it expects total sales to be lowered for recent years. However, it doesn’t expect many changes to previously reported percentage comparisons, median prices or the month’s supply of inventory. NAR expects to publish its improved measurement methodology soon.
“NAR began its normal process for benchmarking sales at the beginning of this year in consultation with government agencies, outside housing economists and academic experts,” NAR said in a release. “There will be no notable change to previous characterizations of the market in terms of sales trends, monthly percentage changes, etc.”
In the 2010 U.S. Census, the government stopped reporting home sales data, which NAR used as a benchmark. As a result, the association had to develop a new independent score to use as a baseline for its calculations. Preliminary data using the new benchmark will “undergo broad review shortly by professional economists and government agencies. After any issues that may surface in the review process are addressed, we will update monthly seasonal adjustment factors and publish revisions.”
Housing forecast
New-home sales are expected to be a record low 302,000 this year, rising to 372,000 in 2012. Housing starts are forecast to rise to 630,000 next year from 583,000 in 2011.
“Although a double-digit growth in new-home sales and housing starts sounds encouraging, the projections remain historically soft relative to long-term underlying demand,” Yun explained.
With falling inventory, the median home price should rise in 2012. “Home prices have yet to show a definitive stabilization pattern in most areas. Still, given an over-correction in prices, there likely will be moderate appreciation in 2012,” Yun said. “Once home prices turn positive on a sustained basis, consumer confidence will rise and help the broader economy to improve,” Yun added.
Richard Peach, senior vice president at the Federal Reserve Board of New York, said the economy is under-performing. “Nearly two-and-a-half years since the end of ‘the great recession,’ the economy continues to operate well below its potential,” he said. “Among the significant structural impediments are the legacy of the housing boom and bust, and fiscal contrition at the state and local level.”
Peach said the current business cycle remains 7 percent below its peak and is longer than other recession cycles since 1953. He added the employment to population ratio is historically low, and there’s been a shift in the distribution of income, with corporate profits up strongly while employment compensation is down.
Peach believes there is a sizeable level of shadow inventory that will result in rising foreclosures. “My idea is to allocate certificates to 2.5 million service members who served in Afghanistan and Iraq that could be used as a downpayment on a foreclosed home in the Fannie or Freddie portfolio,” he said.
© 2011 Florida Realtors®
Lawrence Yun, chief economist of the National Association of Realtors (NAR), said home sales should be stronger. “Tight mortgage credit conditions have been holding back homebuyers all year, and consumer confidence has been shaky recently,” he said. “Nonetheless, there is a sizeable pent-up demand based on population growth, employment levels and a doubling-up phenomenon that can’t continue indefinitely. This demand could quickly stimulate the market when conditions improve.”
Yun projects growth in Gross Domestic Product to be 1.8 percent this year, then rising moderately at a rate of 2.2 percent in 2012. With job growth of 1.7 to 2.2 million next year, the unemployment rate is expected to decline to 8.7 percent by the second half of 2012. Mortgage interest rates should gradually rise from recent record lows and reach 4.5 percent by the middle of 2012.
“Housing affordability conditions, based on the relationship between median home prices, mortgage interest rates, and median family income, have been at a record high this year,” Yun said. “Very favorable affordability conditions will dominate next year as well, which will probably be the second best year on record dating back to 1970. Our hope is that credit restrictions will ease and allow more homebuyers to take advantage of current opportunities.”
Existing-home sales are forecast to edge up about 1 percent this year, and then rise another 4 to 5 percent in 2012. Based on NAR’s current projection model, existing-home sales would total 4.96 million in 2011.
Housing data
NAR says it is benchmarking its existing-home sales statistics, and it expects total sales to be lowered for recent years. However, it doesn’t expect many changes to previously reported percentage comparisons, median prices or the month’s supply of inventory. NAR expects to publish its improved measurement methodology soon.
“NAR began its normal process for benchmarking sales at the beginning of this year in consultation with government agencies, outside housing economists and academic experts,” NAR said in a release. “There will be no notable change to previous characterizations of the market in terms of sales trends, monthly percentage changes, etc.”
In the 2010 U.S. Census, the government stopped reporting home sales data, which NAR used as a benchmark. As a result, the association had to develop a new independent score to use as a baseline for its calculations. Preliminary data using the new benchmark will “undergo broad review shortly by professional economists and government agencies. After any issues that may surface in the review process are addressed, we will update monthly seasonal adjustment factors and publish revisions.”
Housing forecast
New-home sales are expected to be a record low 302,000 this year, rising to 372,000 in 2012. Housing starts are forecast to rise to 630,000 next year from 583,000 in 2011.
“Although a double-digit growth in new-home sales and housing starts sounds encouraging, the projections remain historically soft relative to long-term underlying demand,” Yun explained.
With falling inventory, the median home price should rise in 2012. “Home prices have yet to show a definitive stabilization pattern in most areas. Still, given an over-correction in prices, there likely will be moderate appreciation in 2012,” Yun said. “Once home prices turn positive on a sustained basis, consumer confidence will rise and help the broader economy to improve,” Yun added.
Richard Peach, senior vice president at the Federal Reserve Board of New York, said the economy is under-performing. “Nearly two-and-a-half years since the end of ‘the great recession,’ the economy continues to operate well below its potential,” he said. “Among the significant structural impediments are the legacy of the housing boom and bust, and fiscal contrition at the state and local level.”
Peach said the current business cycle remains 7 percent below its peak and is longer than other recession cycles since 1953. He added the employment to population ratio is historically low, and there’s been a shift in the distribution of income, with corporate profits up strongly while employment compensation is down.
Peach believes there is a sizeable level of shadow inventory that will result in rising foreclosures. “My idea is to allocate certificates to 2.5 million service members who served in Afghanistan and Iraq that could be used as a downpayment on a foreclosed home in the Fannie or Freddie portfolio,” he said.
© 2011 Florida Realtors®
Tuesday, November 1, 2011
7 Cities With Fewest Underwater Home Owners
DAILY REAL ESTATE NEWS | TUESDAY, NOVEMBER 01, 2011
Rochester, N.Y., has the fewest number of homes underwater in the country, according to an analysis by 24/7 Wall St., which culled CoreLogic data to recently identify the housing markets with the fewest number of underwater home owners.
Nationwide, 11 million households are considered underwater—meaning they owe more on their mortgage than their home is currently worth.
Here are the cities that are countering that trend and have the fewest number of underwater home owners, according to 24/7 Wall St.:
1. Rochester, N.Y.
Percentage of homes underwater: 3.41%
Home price change in last year: +0.25%
2. El Paso, Texas
Percentage of homes underwater: 3.89%
Home price change in last year: +5.73%
3. Albany-Schenectady-Troy, N.Y.
Percentage of homes underwater: 4.01%
Home price change in last year: -0.90%
4. Buffalo-Niagara Falls, N.Y.
Percentage of homes underwater: 4.22%
Home price change in last year: 3.92%
5. Fayetteville, N.C.
Percentage of homes underwater: 4.56%
Home price change in last year: +1.14%
6. Huntsville, Ala.
Percentage of homes underwater: 5.30%
Home price change in last year: -4.39%
7. Lancaster, Pa.
Percentage of homes underwater: 5.44%
Home price change in last year: -1.83%
See which other cities made the list.
Source: “10 Cities Where Mortgages Are Staying Afloat,” AOL Real Estate (Oct. 28, 2011)
Read More:
Survey Reveals Top 8 Best Places to Live
Rochester, N.Y., has the fewest number of homes underwater in the country, according to an analysis by 24/7 Wall St., which culled CoreLogic data to recently identify the housing markets with the fewest number of underwater home owners.
Nationwide, 11 million households are considered underwater—meaning they owe more on their mortgage than their home is currently worth.
Here are the cities that are countering that trend and have the fewest number of underwater home owners, according to 24/7 Wall St.:
1. Rochester, N.Y.
Percentage of homes underwater: 3.41%
Home price change in last year: +0.25%
2. El Paso, Texas
Percentage of homes underwater: 3.89%
Home price change in last year: +5.73%
3. Albany-Schenectady-Troy, N.Y.
Percentage of homes underwater: 4.01%
Home price change in last year: -0.90%
4. Buffalo-Niagara Falls, N.Y.
Percentage of homes underwater: 4.22%
Home price change in last year: 3.92%
5. Fayetteville, N.C.
Percentage of homes underwater: 4.56%
Home price change in last year: +1.14%
6. Huntsville, Ala.
Percentage of homes underwater: 5.30%
Home price change in last year: -4.39%
7. Lancaster, Pa.
Percentage of homes underwater: 5.44%
Home price change in last year: -1.83%
See which other cities made the list.
Source: “10 Cities Where Mortgages Are Staying Afloat,” AOL Real Estate (Oct. 28, 2011)
Read More:
Survey Reveals Top 8 Best Places to Live
Tuesday, October 25, 2011
Homeownership is Highest on Record
WASHINGTON – Oct. 25, 2011 – The homeownership rate is at its second-highest level on record, only behind the record high set in 2000, according to the U.S. Census Bureau, which began collecting homeownership data in 1890.
By region, the homeownership rate is:
• Midwest: 69.2 percent
• South: 66.7
• Northeast: 62.2
• West: 60.5
Nearly every metro area had more homeowners than renters in 2010. The metro areas with the highest homeownership rates were in Michigan and Florida. Monroe, Mich., had the highest percentage of owner-occupied units at 79.8 percent, followed by Punta Gorda, Fla., at 79.7 percent.
While the national homeownership rate remained high, the decrease in the rate from 2000 to 2010 by 1.1 percent – to 65.1 percent overall – is the largest decrease since the 1930 to 1940 period, the Census Bureau reported.
States with highest housing inventory
Meanwhile, housing inventory soared 13.6 percent to 15.8 million units from 2000 to 2010, growing the fastest in the South and West. The states with the largest percentage increase in housing units were:
Nevada: 41.9 percent
Arizona: 29.9
Utah: 27.5
Idaho: 26.5
Georgia: 24.6
Florida: 23.1
North Carolina: 22.8
Colorado: 22.4
Texas: 22.3
South Carolina: 21.9
Source: U.S. Census 2010 and “Homeownership Near Record,” Investors.com (Oct. 20, 2011)
© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
By region, the homeownership rate is:
• Midwest: 69.2 percent
• South: 66.7
• Northeast: 62.2
• West: 60.5
Nearly every metro area had more homeowners than renters in 2010. The metro areas with the highest homeownership rates were in Michigan and Florida. Monroe, Mich., had the highest percentage of owner-occupied units at 79.8 percent, followed by Punta Gorda, Fla., at 79.7 percent.
While the national homeownership rate remained high, the decrease in the rate from 2000 to 2010 by 1.1 percent – to 65.1 percent overall – is the largest decrease since the 1930 to 1940 period, the Census Bureau reported.
States with highest housing inventory
Meanwhile, housing inventory soared 13.6 percent to 15.8 million units from 2000 to 2010, growing the fastest in the South and West. The states with the largest percentage increase in housing units were:
Nevada: 41.9 percent
Arizona: 29.9
Utah: 27.5
Idaho: 26.5
Georgia: 24.6
Florida: 23.1
North Carolina: 22.8
Colorado: 22.4
Texas: 22.3
South Carolina: 21.9
Source: U.S. Census 2010 and “Homeownership Near Record,” Investors.com (Oct. 20, 2011)
© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
Monday, October 10, 2011
30% of buyers denied or give up on mortgage
WASHINGTON – Oct. 10, 2011 – Credit has gotten tighter, and more buyers are being left out – or becoming so frustrated they give up. Last year, more than 2 million people were turned down for mortgages, according to the Federal Financial Institutions Examination Council.
About 30 percent of buyers are either denied a mortgage, or they drop out of the application process, the Mortgage Bankers Association estimates.
Biggest reasons for rejection:
• Insufficient income: Buyers cannot afford a $1 million home if they make $50,000 per year.
• Credit details. There are a lot of rules, and it’s not easy to understand what a bank wants. Overtime income, for example, only counts if documented for at least two years to some lenders. Rental income may only count if the borrower has a 30 percent equity stake in the building.
• Bad credit. If a credit score is somewhere around 620 to 660, depending on the bank, lenders say no almost automatically.
• Appraisals. If an appraisal is lower than an agreed-upon selling price, the lender balks.
• External problems. A lender could nix an application if the homeowners’ association has issues or the neighborhood has problems.
• Incomplete information. Paperwork problems – incomplete information, missing forms, etc. – bog down about 12 percent of applications.
And “it’s common to get turned down if you have a gap in employment history over the last two years,” says Erin Lantz, director of the Zillow Mortgage Marketplace.
Source: “Triggers for Rejection,” The New York Times (Oct. 6, 2011)
© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
About 30 percent of buyers are either denied a mortgage, or they drop out of the application process, the Mortgage Bankers Association estimates.
Biggest reasons for rejection:
• Insufficient income: Buyers cannot afford a $1 million home if they make $50,000 per year.
• Credit details. There are a lot of rules, and it’s not easy to understand what a bank wants. Overtime income, for example, only counts if documented for at least two years to some lenders. Rental income may only count if the borrower has a 30 percent equity stake in the building.
• Bad credit. If a credit score is somewhere around 620 to 660, depending on the bank, lenders say no almost automatically.
• Appraisals. If an appraisal is lower than an agreed-upon selling price, the lender balks.
• External problems. A lender could nix an application if the homeowners’ association has issues or the neighborhood has problems.
• Incomplete information. Paperwork problems – incomplete information, missing forms, etc. – bog down about 12 percent of applications.
And “it’s common to get turned down if you have a gap in employment history over the last two years,” says Erin Lantz, director of the Zillow Mortgage Marketplace.
Source: “Triggers for Rejection,” The New York Times (Oct. 6, 2011)
© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
Thursday, September 15, 2011
10 States With the Highest Foreclosure Rates
DAILY REAL ESTATE NEWS | THURSDAY, SEPTEMBER 15, 2011
For the 56th straight month, Nevada continued to have the highest foreclosure rate in the country, where one in every 118 homes received a foreclosure filing during August, according to the latest figures from RealtyTrac.
Nationally, 1 in every 570 households received a foreclosure filing in August.
Meanwhile, five states accounted for 53 percent of the foreclosure activity in August, led by California. In California, 59,383 properties received foreclosure filings last month. The state saw a 55 percent month-over-month increase in default notices.
The following are the states that posted the highest foreclosure rates in August, according to RealtyTrac’s latest report:
1. Nevada
One in every 118 households received a foreclosure filing during August.
Total foreclosure filings in August: 9,677
2. California
One in every 226 households
Total foreclosure filings in August: 59,383
3. Arizona
One in every 248 households
Total foreclosure filings in August: 23,569
4. Georgia
1 in every 346 households
Total foreclosure filings in August: 11,743
5. Idaho
1 in every 348 households
Total foreclosure filings in August: 1,860
6. Michigan
1 in every 349 households
Total foreclosure filings in August: 13,016
7. Florida
1 in every 376 households
Total foreclosure filings in August: 23,569
8. Illinois
1 in every 424 households
Total foreclosure filings in August: 12,493
9. Colorado
1 in every 439 households
Total foreclosure filings in August: 4,933
10. Utah
1 in every 450 households
Total foreclosure filings in August: 2,119
By REALTOR® Magazine Daily News
Read More
Mortgage Defaults Soar 33%, Biggest Monthly Gain in 4 Years
For the 56th straight month, Nevada continued to have the highest foreclosure rate in the country, where one in every 118 homes received a foreclosure filing during August, according to the latest figures from RealtyTrac.
Nationally, 1 in every 570 households received a foreclosure filing in August.
Meanwhile, five states accounted for 53 percent of the foreclosure activity in August, led by California. In California, 59,383 properties received foreclosure filings last month. The state saw a 55 percent month-over-month increase in default notices.
The following are the states that posted the highest foreclosure rates in August, according to RealtyTrac’s latest report:
1. Nevada
One in every 118 households received a foreclosure filing during August.
Total foreclosure filings in August: 9,677
2. California
One in every 226 households
Total foreclosure filings in August: 59,383
3. Arizona
One in every 248 households
Total foreclosure filings in August: 23,569
4. Georgia
1 in every 346 households
Total foreclosure filings in August: 11,743
5. Idaho
1 in every 348 households
Total foreclosure filings in August: 1,860
6. Michigan
1 in every 349 households
Total foreclosure filings in August: 13,016
7. Florida
1 in every 376 households
Total foreclosure filings in August: 23,569
8. Illinois
1 in every 424 households
Total foreclosure filings in August: 12,493
9. Colorado
1 in every 439 households
Total foreclosure filings in August: 4,933
10. Utah
1 in every 450 households
Total foreclosure filings in August: 2,119
By REALTOR® Magazine Daily News
Read More
Mortgage Defaults Soar 33%, Biggest Monthly Gain in 4 Years
Friday, September 9, 2011
Where Home Prices Have Dropped the Most
California cities have seen their home values drop by the largest percentage in the last five years, with some metro areas posting losses of up to 67 percent in that time period. California cities occupied six of the top 10 metro areas with the largest drops, according to a recent Zillow study based on its home-value estimates and Zillow Home Value Index.
Overall, "there will be many ups and downs in home values before this is over, and we continue to expect a true bottom in 2012, at the earliest,” says Stan Humphries, Zillow’s chief economist. “There are still hazards in the form of a full foreclosure pipeline, high negative equity, and fluctuations in demand."
The following are seven cities that have seen home values drop the most since the housing boom, according to Zillow:
1. Merced, Calif.
July 2011 Zillow Home Value Index: $106,514
Zillow Home Value Index 5 Years ago: $328,813
Value difference (by percent): -67.6%
2. Modesto, Calif.
July 2011 ZHVI: $128,777
ZHVI 5 Years Ago: $352,599
Value difference: -63.5%
3. Stockton, Calif.
July 2011 ZHVI: $150,061
ZHVI 5 Years Ago: $404,036
Value difference: -62.9%
4. Las Vegas
July 2011 ZHVI: $117,084
ZHVI 5 Years Ago: $303,656
Value difference: -61.4%
5. Vallejo, Calif.
July 2011 ZHVI: $190,521
ZHVI 5 Years Ago: $468,071
Value difference: -59.3%
6. Salinas, Calif.
July 2011 ZHVI: $282,289
ZHVI 5 Years Ago: $664,404
Value difference: -57.5%
7. Daytona Beach, Fla.
July 2011 ZHVI: $95,193
ZHVI 5 Years Ago: $220,436
Value difference: -56.8%
See what other cities made it in the top 10 list.
Source: “Five Years After Housing Market Peak, Bumpy Road Toward Stabilization Underway As Home Values Show Recent Rise in Many Markets,” Zillow (Aug. 9, 2011) and “10 Real Estate Markets With the Largest 5-Year Drop in Home Values,” Inman News (Sept. 8, 2011)
Read More
Zillow: Market to Reach Bottom Possibly by 2012
Overall, "there will be many ups and downs in home values before this is over, and we continue to expect a true bottom in 2012, at the earliest,” says Stan Humphries, Zillow’s chief economist. “There are still hazards in the form of a full foreclosure pipeline, high negative equity, and fluctuations in demand."
The following are seven cities that have seen home values drop the most since the housing boom, according to Zillow:
1. Merced, Calif.
July 2011 Zillow Home Value Index: $106,514
Zillow Home Value Index 5 Years ago: $328,813
Value difference (by percent): -67.6%
2. Modesto, Calif.
July 2011 ZHVI: $128,777
ZHVI 5 Years Ago: $352,599
Value difference: -63.5%
3. Stockton, Calif.
July 2011 ZHVI: $150,061
ZHVI 5 Years Ago: $404,036
Value difference: -62.9%
4. Las Vegas
July 2011 ZHVI: $117,084
ZHVI 5 Years Ago: $303,656
Value difference: -61.4%
5. Vallejo, Calif.
July 2011 ZHVI: $190,521
ZHVI 5 Years Ago: $468,071
Value difference: -59.3%
6. Salinas, Calif.
July 2011 ZHVI: $282,289
ZHVI 5 Years Ago: $664,404
Value difference: -57.5%
7. Daytona Beach, Fla.
July 2011 ZHVI: $95,193
ZHVI 5 Years Ago: $220,436
Value difference: -56.8%
See what other cities made it in the top 10 list.
Source: “Five Years After Housing Market Peak, Bumpy Road Toward Stabilization Underway As Home Values Show Recent Rise in Many Markets,” Zillow (Aug. 9, 2011) and “10 Real Estate Markets With the Largest 5-Year Drop in Home Values,” Inman News (Sept. 8, 2011)
Read More
Zillow: Market to Reach Bottom Possibly by 2012
Thursday, August 25, 2011
White House Weighs Mass Refinancing Plan
DAILY REAL ESTATE NEWS | THURSDAY, AUGUST 25, 2011
The White House is considering a housing proposal that would allow millions of home owners with government-backed mortgages to refinance into lower interest rates, The New York Times reports.
“A wave of refinancing could be a strong stimulus to the economy, because it would lower consumers’ mortgage bills right away and allow them to spend elsewhere,” an article in The New York Times notes.
Many home owners have been unable to take advantage of today’s low interest rates — which are averaging around 4 percent — because they don’t qualify for refinancing at the best rates since they owe more on their home than it is currently worth or because of poor credit. The refinancing plan is still under discussion of how it would work, The New York Times said.
“This is the best stimulus out there because it doesn’t increase the deficit, it accomplishes monetary policy, and it reduces defaults in housing,” Christopher J. Mayer, an economist at the Columbia Business School, told The New York Times.
The White House is also considering other options to try to stimulate the housing market or save home owners from foreclosure. Such options include more changes to its refinancing programs so more home owners can participate or a home rental program to that would rent out foreclosures instead of putting them for sale so foreclosures would stop weighing down overall home prices.
Source: “U.S. May Back Refinance Plan for Mortgages,” The New York Times (Aug. 24, 2011)
Thursday, July 28, 2011
Bank: ‘We’ll reduce your loan, you share future appreciation'
NEW YORK – July 28, 2011 – Ocwen Financial Corp., a servicer of residential mortgages, launched a new loan modification program to reduce the principal on a mortgage for delinquent borrowers, but the borrowers must agree to let loan investors share in future appreciation of the home’s value when the market recovers.
Through the Shared Appreciation Modification program (SAMs), Ocwen will write down the principal of the loan to 95 percent of the home’s current market value. The amount written down will then be forgiven in one-third increments over a three-year timespan, as long as the homeowner remains current on the modified mortgage.
Then, “when the house is later sold or refinanced, the borrower must share 25 percent of the appreciation with the investors that own the loan; borrowers keep 75 percent of the gain,” the company notes.
Loan modifications will be available only to homeowners in negative equity.
“Like all modifications, SAMs help homeowners avoid foreclosure. But they also restore equity,” says Ocwen CEO Ronald Faris in a public statement about the program. “That’s a significant benefit to the customer and, we believe, the economy and housing market. Psychologically, it’s important too. Our analytics tell us that an underwater mortgage is one-and-a-half to two-times more likely to default than one with at least some positive equity.”
The program, which is expected to be rolled out into 33 states, is one of the first principal reduction programs started by a private company.
Source: “Ocwen Unveils New Principal Reduction Program,” HousingWire (July 26, 2011) and “Ocwen Offering Mortgage Modifications That Restore Equity for Underwater Borrowers,” GlobeNewswire (July 26, 2011)
© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
Through the Shared Appreciation Modification program (SAMs), Ocwen will write down the principal of the loan to 95 percent of the home’s current market value. The amount written down will then be forgiven in one-third increments over a three-year timespan, as long as the homeowner remains current on the modified mortgage.
Then, “when the house is later sold or refinanced, the borrower must share 25 percent of the appreciation with the investors that own the loan; borrowers keep 75 percent of the gain,” the company notes.
Loan modifications will be available only to homeowners in negative equity.
“Like all modifications, SAMs help homeowners avoid foreclosure. But they also restore equity,” says Ocwen CEO Ronald Faris in a public statement about the program. “That’s a significant benefit to the customer and, we believe, the economy and housing market. Psychologically, it’s important too. Our analytics tell us that an underwater mortgage is one-and-a-half to two-times more likely to default than one with at least some positive equity.”
The program, which is expected to be rolled out into 33 states, is one of the first principal reduction programs started by a private company.
Source: “Ocwen Unveils New Principal Reduction Program,” HousingWire (July 26, 2011) and “Ocwen Offering Mortgage Modifications That Restore Equity for Underwater Borrowers,” GlobeNewswire (July 26, 2011)
© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
Monday, July 11, 2011
Second chance for owners who lost homes
WASHINGTON – July 11, 2011 – More than 2 million homeowners who were foreclosed on or were in the process of a foreclosure during 2009 or 2010 can now ask for a review of their case, banking regulators announced this week. Banking regulators say ex-homeowners who might be eligible will receive a letter from their lender explaining their rights.
The move is to help identify homeowners who may have been improperly foreclosed upon, Julie Williams, chief counsel of the Office of the Comptroller of the Currency, said at a congressional hearing.
Homeowners who ask for the review will receive a letter explaining their rights.
Mortgage servicers will hire independent auditors to conduct reviews of the cases and determine if homeowners should receive financial compensation if the foreclosures were not done properly. They will also look for borrowers who were denied loan modifications when they may have been eligible for one.
The reviews are part of the mortgage servicer requirements called for by regulators after an investigation last fall revealed improper foreclosure practices by banks. Banks have until Wednesday to submit plans to the OCC on how they plan to revamp foreclosure practices.
Source: “Foreclosed Home Owners May Seek Case Reviews,” USA Today (July 8, 2011)
© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
The move is to help identify homeowners who may have been improperly foreclosed upon, Julie Williams, chief counsel of the Office of the Comptroller of the Currency, said at a congressional hearing.
Homeowners who ask for the review will receive a letter explaining their rights.
Mortgage servicers will hire independent auditors to conduct reviews of the cases and determine if homeowners should receive financial compensation if the foreclosures were not done properly. They will also look for borrowers who were denied loan modifications when they may have been eligible for one.
The reviews are part of the mortgage servicer requirements called for by regulators after an investigation last fall revealed improper foreclosure practices by banks. Banks have until Wednesday to submit plans to the OCC on how they plan to revamp foreclosure practices.
Source: “Foreclosed Home Owners May Seek Case Reviews,” USA Today (July 8, 2011)
© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
Friday, July 8, 2011
Adding office could increase home value
PHILADELPHIA – July 8, 2011 – Remember when the “experts” said that most Americans would telecommute from home offices to work every day?
Hasn’t happened, although ever-evolving technology has made the notion more viable. Think laptops, netbooks, printers, smartphones, and tablets, networked through a wireless router to a high-speed Internet connection.
Thanks to wireless technology, you don’t even need a physical home office – although if you are counting on an income-tax deduction, the IRS requires that space be dedicated to that purpose.
Don’t need the deduction? Then “the home office is everywhere,” said Steve Melman, director of economic services at the National Association of Home Builders.
About 2 percent of U.S. workers – the self-employed and unpaid volunteers excluded – consider home their primary workplace, the Telework Research Network says. It estimates that 20 million to 30 million people work from home at least one day a week.
That’s hardly everyone, though it is more than the Bureau of Labor Statistics’ 2001 figure of 19.5 million.
Two additional factors have had a huge effect on the number of home offices: the flagging economy and an overall demand for affordability that has resulted from it.
Members of the home builders’ group were surveyed at the end of 2010 about what new homes might look like in 2015, Melman said.
The consensus: Homes will be smaller, and “people will be looking for real value, with the walk-in closet and the laundry room at the very top of the list of features.” Most future homebuyers (read: younger buyers) will use the portability of electronic devices to “make the most of less square footage.”
That’s a far cry from the home-office-as-emerging-trend of the 1990s, when telecommuting depended on having a work space that could accommodate, in addition to desk and chair, a telephone, a desktop computer, a modem, a printer, a file cabinet and storage for floppy disks (remember those?).
When the need for data speed overwhelmed standard wiring, Category 5, an advanced system providing Internet access at speeds 200 times faster, required owners of older homes to rip open walls to upgrade their service. Newly built homes had the less expensive advantage, until wireless technology leveled the playing field.
Today, for about $60, a single-band wireless router allows you to create a building-wide network of computers, printers, and other devices linked to a single Internet source – a cable modem.
Access to the router can be made secure within the network, so you can do online financial transactions safely. Some cable-modem providers offer free antivirus software that can be downloaded to each computer through the network. Every computer can be networked through a single printer, wireless or not.
But all routers are not created equal, and online shopping is a good idea. An excellent guide can be found at http://is.gd/lggFIj. Most manufacturers offer free upgrades to their firmware, the internal programs that run these devices, so keep in touch with their websites.
If you run a business from home, or take a lot of work home, you probably will want dedicated space somewhere – a quiet somewhere. Design the space for yourself, keeping the costs within a reasonable budget, rather than with resale in mind.
In 2007, Remodeling magazine’s annual Cost vs. Value report said a home-office renovation would return 56.1 percent of your investment at sale time. This year, that was down to 45.8 percent.
If you’ll be working for long periods in your home office, think ergonomically. A good source of information about furniture and design is at http://is.gd/epQjQA. Lighting a home office is tricky. The American Lighting Association offers tips at http://is.gd/l8GUls.
You’ll need plenty of grounded electrical outlets and a surge protector for your equipment – one with a high joule rating (the higher the rating, the longer protection will last) – with phone-line and coaxial-cable jacks, too. Get a printer with copier, fax, and scanner functions.
Choice of computer is up to you – shop for the best deal, warranty protection, and service guarantee. If you will be doing a lot of conferencing from your home office, a Web camera is a must.
Depending on how much data are involved in your job, an external hard drive of 250 gigabytes or more should be weighed against online backup for a fee, as discussed in PC magazine at http://is.gd/XZr601.
The problem with technology, of course, is that it evolves faster than our thinking about how to use it. “Remember, even the computer experts had no idea what to do with email,” Melman said.
Copyright © 2011
Hasn’t happened, although ever-evolving technology has made the notion more viable. Think laptops, netbooks, printers, smartphones, and tablets, networked through a wireless router to a high-speed Internet connection.
Thanks to wireless technology, you don’t even need a physical home office – although if you are counting on an income-tax deduction, the IRS requires that space be dedicated to that purpose.
Don’t need the deduction? Then “the home office is everywhere,” said Steve Melman, director of economic services at the National Association of Home Builders.
About 2 percent of U.S. workers – the self-employed and unpaid volunteers excluded – consider home their primary workplace, the Telework Research Network says. It estimates that 20 million to 30 million people work from home at least one day a week.
That’s hardly everyone, though it is more than the Bureau of Labor Statistics’ 2001 figure of 19.5 million.
Two additional factors have had a huge effect on the number of home offices: the flagging economy and an overall demand for affordability that has resulted from it.
Members of the home builders’ group were surveyed at the end of 2010 about what new homes might look like in 2015, Melman said.
The consensus: Homes will be smaller, and “people will be looking for real value, with the walk-in closet and the laundry room at the very top of the list of features.” Most future homebuyers (read: younger buyers) will use the portability of electronic devices to “make the most of less square footage.”
That’s a far cry from the home-office-as-emerging-trend of the 1990s, when telecommuting depended on having a work space that could accommodate, in addition to desk and chair, a telephone, a desktop computer, a modem, a printer, a file cabinet and storage for floppy disks (remember those?).
When the need for data speed overwhelmed standard wiring, Category 5, an advanced system providing Internet access at speeds 200 times faster, required owners of older homes to rip open walls to upgrade their service. Newly built homes had the less expensive advantage, until wireless technology leveled the playing field.
Today, for about $60, a single-band wireless router allows you to create a building-wide network of computers, printers, and other devices linked to a single Internet source – a cable modem.
Access to the router can be made secure within the network, so you can do online financial transactions safely. Some cable-modem providers offer free antivirus software that can be downloaded to each computer through the network. Every computer can be networked through a single printer, wireless or not.
But all routers are not created equal, and online shopping is a good idea. An excellent guide can be found at http://is.gd/lggFIj. Most manufacturers offer free upgrades to their firmware, the internal programs that run these devices, so keep in touch with their websites.
If you run a business from home, or take a lot of work home, you probably will want dedicated space somewhere – a quiet somewhere. Design the space for yourself, keeping the costs within a reasonable budget, rather than with resale in mind.
In 2007, Remodeling magazine’s annual Cost vs. Value report said a home-office renovation would return 56.1 percent of your investment at sale time. This year, that was down to 45.8 percent.
If you’ll be working for long periods in your home office, think ergonomically. A good source of information about furniture and design is at http://is.gd/epQjQA. Lighting a home office is tricky. The American Lighting Association offers tips at http://is.gd/l8GUls.
You’ll need plenty of grounded electrical outlets and a surge protector for your equipment – one with a high joule rating (the higher the rating, the longer protection will last) – with phone-line and coaxial-cable jacks, too. Get a printer with copier, fax, and scanner functions.
Choice of computer is up to you – shop for the best deal, warranty protection, and service guarantee. If you will be doing a lot of conferencing from your home office, a Web camera is a must.
Depending on how much data are involved in your job, an external hard drive of 250 gigabytes or more should be weighed against online backup for a fee, as discussed in PC magazine at http://is.gd/XZr601.
The problem with technology, of course, is that it evolves faster than our thinking about how to use it. “Remember, even the computer experts had no idea what to do with email,” Melman said.
Copyright © 2011
Tuesday, June 28, 2011
The Better Bargain: Foreclosure or Short Sale?
Short sales and foreclosures have flooded the housing market in recent years, and buyers are often drawn to the bargain prices but may be hesitant to jump into what usually is a difficult transaction and a long process.
Bankrate.com recently tackled the question of “Which to Buy: Short Sale or Foreclosure?” in an article that helps buyers weigh the pros and cons of a distressed property. Experts note that the question largely depends on buyers' situations, how quickly they need a home, and their tolerance for fixer-uppers.
Foreclosure Pros and Cons
Buying a foreclosure is often faster than purchasing a short sale. Plus, buyers often can negotiate closing costs and price in foreclosure sales, Elaine Zimmermann, a real estate investor in Memphis, Tenn., told Bankrate.com.
However, abandoned homes in foreclosure can deteriorate very quickly so the buyer may need to weigh the condition of the home and whether they want a fixer upper. Scarred walls and carpets and appliances that were damaged by the former owner are not uncommon in a foreclosure, says David Richardson, an inspector in the Detroit area who's certified by the American Society of Home Inspectors.
Short Sales Pros and Cons
A short-sale home is still owned by the occupant, so it tends to be in better condition than a foreclosure, experts say.
"The short sale is, in my opinion, far better than buying a foreclosure because the home is generally in better condition because it's been occupied," says Gwen Daubenmeyer, a certified distressed property expert with RE/MAX in Detroit. "The utilities have been maintained, usually the lawn is maintained, those kinds of things."
But short sales often can take a longer time than a foreclosure to close. However, the federal Home Affordable Foreclosure Alternatives program, or HAFA, may be able to help speed up the short-sale process since it has created a timeline to hold mortgage lenders accountable, but still “it’s not perfect by any means,” Daubenmeyer says.
Source: “Which to Buy: Short Sale or Foreclosure?” Bankrate.com (June 2011)
Bankrate.com recently tackled the question of “Which to Buy: Short Sale or Foreclosure?” in an article that helps buyers weigh the pros and cons of a distressed property. Experts note that the question largely depends on buyers' situations, how quickly they need a home, and their tolerance for fixer-uppers.
Foreclosure Pros and Cons
Buying a foreclosure is often faster than purchasing a short sale. Plus, buyers often can negotiate closing costs and price in foreclosure sales, Elaine Zimmermann, a real estate investor in Memphis, Tenn., told Bankrate.com.
However, abandoned homes in foreclosure can deteriorate very quickly so the buyer may need to weigh the condition of the home and whether they want a fixer upper. Scarred walls and carpets and appliances that were damaged by the former owner are not uncommon in a foreclosure, says David Richardson, an inspector in the Detroit area who's certified by the American Society of Home Inspectors.
Short Sales Pros and Cons
A short-sale home is still owned by the occupant, so it tends to be in better condition than a foreclosure, experts say.
"The short sale is, in my opinion, far better than buying a foreclosure because the home is generally in better condition because it's been occupied," says Gwen Daubenmeyer, a certified distressed property expert with RE/MAX in Detroit. "The utilities have been maintained, usually the lawn is maintained, those kinds of things."
But short sales often can take a longer time than a foreclosure to close. However, the federal Home Affordable Foreclosure Alternatives program, or HAFA, may be able to help speed up the short-sale process since it has created a timeline to hold mortgage lenders accountable, but still “it’s not perfect by any means,” Daubenmeyer says.
Source: “Which to Buy: Short Sale or Foreclosure?” Bankrate.com (June 2011)
Monday, June 27, 2011
Which Vehicles Come Out on Top for Quality?
Lexus tops the list this year as the best brand for vehicles, according to the 2011 J.D. Power and Associates’ Initial Quality Study. Lexus’ LS sedan had the fewest reported problems of any vehicle in the first 90 days of ownership, the study found.
“Expected reliability continues to be the single-most-important reason why new-vehicle buyers choose one model over another," says David Sargent, vice president of global vehicle research at J.D. Power and Associates.
The Top 7 Vehicles
Here are the top ranked vehicles from J.D. Power and Associates’ 2011 Nameplate Initial Quality Study.
1. Lexus
2. Honda
3. Acura
4. Mercedes-Benz
5. Mazda
6. Porsche
7. Toyota
The Lowest Ranked Vehicles
Overall, "automakers are tweaking their engines and transmissions to maximize fuel economy, but their experiments have taken their toll in terms of the driving experience and quality ratings are suffering as a result,” Michelle Krebs, Edmunds.com senior analyst, told USA Today.
The brands that scored the worst for quality in the study were:
Dodge
Mitsubishi
Suzuki
View more of the study’s vehicle rankings at USA Today.
“Expected reliability continues to be the single-most-important reason why new-vehicle buyers choose one model over another," says David Sargent, vice president of global vehicle research at J.D. Power and Associates.
The Top 7 Vehicles
Here are the top ranked vehicles from J.D. Power and Associates’ 2011 Nameplate Initial Quality Study.
1. Lexus
2. Honda
3. Acura
4. Mercedes-Benz
5. Mazda
6. Porsche
7. Toyota
The Lowest Ranked Vehicles
Overall, "automakers are tweaking their engines and transmissions to maximize fuel economy, but their experiments have taken their toll in terms of the driving experience and quality ratings are suffering as a result,” Michelle Krebs, Edmunds.com senior analyst, told USA Today.
The brands that scored the worst for quality in the study were:
Dodge
Mitsubishi
Suzuki
View more of the study’s vehicle rankings at USA Today.
Wednesday, June 22, 2011
Couple Served Foreclosure Notice Via Facebook
For lenders who can’t find a defaulting home owner, they may turn to Facebook or other social networking sites to track them down. That’s what a lender in Australia did. The lender used Facebook to track the defaulting couple down and send them a foreclosure notice via the social networking site, AOL Real Estate reports.
The lender was unable to find a physical address or e-mail for a couple in Australia who defaulted on their six-figure mortgage. So the lender’s lawyer located them on Facebook, verifying the couple’s identities by matching up names, birthdates, and the fact that they “friended” one another.
Australian courts recently upheld the lender’s right to use Facebook to send foreclosure notices. The court ruled that the couple didn’t have any privacy protections on their Facebook accounts and were frequent visitors so it served as a reasonable way to send a notice.
While industry experts say they haven’t heard of lenders sending foreclosure notices via social networking sites in the United States, “it’s bound to happen,” Marc Rotenberg, president of the Electronic Privacy Information Center in Washington, told AOL Real Estate. "The real concern the courts have is whether it's a fair notice that the person actually receives."
As long as it’s obvious the person is a frequent user of the site, legal experts say the ability to serve foreclosure documents via social network sites seems like a justifiable way to send a foreclosure notice.
Source: “Your Facebook Status: Foreclosed,” AOL Real Estate (June 17, 2011)
Read More:
Friend Power: Less Is Definitely More
Browse all of today's news
The lender was unable to find a physical address or e-mail for a couple in Australia who defaulted on their six-figure mortgage. So the lender’s lawyer located them on Facebook, verifying the couple’s identities by matching up names, birthdates, and the fact that they “friended” one another.
Australian courts recently upheld the lender’s right to use Facebook to send foreclosure notices. The court ruled that the couple didn’t have any privacy protections on their Facebook accounts and were frequent visitors so it served as a reasonable way to send a notice.
While industry experts say they haven’t heard of lenders sending foreclosure notices via social networking sites in the United States, “it’s bound to happen,” Marc Rotenberg, president of the Electronic Privacy Information Center in Washington, told AOL Real Estate. "The real concern the courts have is whether it's a fair notice that the person actually receives."
As long as it’s obvious the person is a frequent user of the site, legal experts say the ability to serve foreclosure documents via social network sites seems like a justifiable way to send a foreclosure notice.
Source: “Your Facebook Status: Foreclosed,” AOL Real Estate (June 17, 2011)
Read More:
Friend Power: Less Is Definitely More
Browse all of today's news
Friday, June 10, 2011
Why Home Sales Will Rise This Year
Why Home Sales Will Rise This Year
The first quarter ended with decent home sales activity, but the rest of the year should be even better. Here's why.
By Lawrence Yun
The first quarter ended with decent home sales activity, with existing homes selling at an annualized pace of 5.1 million. The remainder of the year should be better still for the following reasons:
More jobs
Rising stock market wealth
Rising apartment rents
Continuing high affordability conditions
Home values at historically justifiable levels
Investors looking to hedge against inflation
Foreigners buying U.S. homes on the cheap
Other potential contributing factors, although they’re not happening yet, are huge bank profits translating into more desire to lend and some reduction to market friction as lenders’ short sale approval processes improve and appraisals become less of an issue.
So, if existing-home sales either hold at the 5.1 mil lion pace of the first quarter or improve on that, then the annual sales tally will easily exceed the 4.9 mil-lion home sales we saw last year.
Still, the stars are not all aligned. There will be obstacles. High gas prices are a daily reminder that something is not right with the economy; that will hold back consumer confidence. Washington policymakers are debating the ending of government guaranteed mortgages and requiring a minimum down payment of 10 to 20 percent on conventional mortgages, even though the FHA and VA mortgage programs have very low down payments and have yet to require a single dime of taxpayers’ money. And there will be attempts to chip away at the mortgage interest deduction by invoking class warfare—the " let’s go after the rich " approach.
At least through 2011, improving market developments should outweigh the negative impact imposed by Washington policymakers.xisting-home Sales ‘Rebenchmarking’
Learn how NAR plans to ensure the continued accuracy of its existing-home sales calculation in the years ahead: "How NAR Calculates Existing-home Sales"
The first quarter ended with decent home sales activity, but the rest of the year should be even better. Here's why.
By Lawrence Yun
The first quarter ended with decent home sales activity, with existing homes selling at an annualized pace of 5.1 million. The remainder of the year should be better still for the following reasons:
More jobs
Rising stock market wealth
Rising apartment rents
Continuing high affordability conditions
Home values at historically justifiable levels
Investors looking to hedge against inflation
Foreigners buying U.S. homes on the cheap
Other potential contributing factors, although they’re not happening yet, are huge bank profits translating into more desire to lend and some reduction to market friction as lenders’ short sale approval processes improve and appraisals become less of an issue.
So, if existing-home sales either hold at the 5.1 mil lion pace of the first quarter or improve on that, then the annual sales tally will easily exceed the 4.9 mil-lion home sales we saw last year.
Still, the stars are not all aligned. There will be obstacles. High gas prices are a daily reminder that something is not right with the economy; that will hold back consumer confidence. Washington policymakers are debating the ending of government guaranteed mortgages and requiring a minimum down payment of 10 to 20 percent on conventional mortgages, even though the FHA and VA mortgage programs have very low down payments and have yet to require a single dime of taxpayers’ money. And there will be attempts to chip away at the mortgage interest deduction by invoking class warfare—the " let’s go after the rich " approach.
At least through 2011, improving market developments should outweigh the negative impact imposed by Washington policymakers.xisting-home Sales ‘Rebenchmarking’
Learn how NAR plans to ensure the continued accuracy of its existing-home sales calculation in the years ahead: "How NAR Calculates Existing-home Sales"
Thursday, June 9, 2011
Which Social Network Is Rated Most Important?
Nearly 60 percent of survey respondents say that it is important to have a LinkedIn account--more than any other social network, according to “S-Net (The Impact of Social Media),” a report from ROI Research Inc. of nearly 3,000 active social networkers.
And those surveyed say they use LinkedIn a lot, too. With those who have an active LinkedIn account, half of those surveyed say they visit the site at least weekly, and 20 percent visit the site at least daily.
“Factors including LinkedIn’s recent IPO announcement, the May uptick in national unemployment, and signs of a slowed market certainly contribute to LinkedIn’s attractiveness among social networkers,” says Daina Middleton, CEO of Performics, which released the survey results.
The survey also found:
•Social networkers listen to what their peers have to say about brands and businesses they like--or don’t. Sixty percent say they are at least somewhat likely to take action when a friend posts something about a product/service, company, or brand. Slightly more than half agree that others can influence business decisions made by companies and brands by sharing their opinions on social networking sites.
•Fifty-three percent frequently or occasionally use social networking sites to give feedback about a brand or business.
•The public is divided on using social networks to give and get advice about other companies. Fifty percent of respondents say they use social networks to give advice and another 50 percent say they use it to get advice about services and companies.
And those surveyed say they use LinkedIn a lot, too. With those who have an active LinkedIn account, half of those surveyed say they visit the site at least weekly, and 20 percent visit the site at least daily.
“Factors including LinkedIn’s recent IPO announcement, the May uptick in national unemployment, and signs of a slowed market certainly contribute to LinkedIn’s attractiveness among social networkers,” says Daina Middleton, CEO of Performics, which released the survey results.
The survey also found:
•Social networkers listen to what their peers have to say about brands and businesses they like--or don’t. Sixty percent say they are at least somewhat likely to take action when a friend posts something about a product/service, company, or brand. Slightly more than half agree that others can influence business decisions made by companies and brands by sharing their opinions on social networking sites.
•Fifty-three percent frequently or occasionally use social networking sites to give feedback about a brand or business.
•The public is divided on using social networks to give and get advice about other companies. Fifty percent of respondents say they use social networks to give advice and another 50 percent say they use it to get advice about services and companies.
Tuesday, June 7, 2011
What's That '+1 Button' All Over the Internet?
Google recently launched the “+1 button” and you’ll spot it on a range of Web sites from YouTube and Blogger to the Washington Post and many others. Google added the +1 button to its search engine three months ago but is now making the “+1 button” available to other Web sites to add.
So what is it?
The button is similar to Facebook’s Like button. You click the +1 button when you think “this is pretty cool” or when you want to say “you should check this out” when viewing Web sites, according to Google.
The button gives you the ability to vote on Web sites and advertisements (the button can appear next to the headline of search ads), and the information is then used to tailor search results for you and your contacts.
For example, "with a single click you can recommend that raincoat, news article, or favorite sci-fi movie to friends, contacts, and the rest of the world,” writes Google software engineer Evan Gilbert in a blog post. “The next time your connections search, they could see your +1's directly in their search results, helping them find your recommendations when they're most useful."
You’ll need to be signed into your Google Account to see when friends and contacts have endorsed certain Web pages using the +1 button.
Google says it hopes the added button will help improve click-through rates for content and advertising and is encouraging Web site owners to add the button to their Web pages to get their search results to stand out more.
Source: “Google Rolls Out +1 Button for Web Sites,” TechSpot
So what is it?
The button is similar to Facebook’s Like button. You click the +1 button when you think “this is pretty cool” or when you want to say “you should check this out” when viewing Web sites, according to Google.
The button gives you the ability to vote on Web sites and advertisements (the button can appear next to the headline of search ads), and the information is then used to tailor search results for you and your contacts.
For example, "with a single click you can recommend that raincoat, news article, or favorite sci-fi movie to friends, contacts, and the rest of the world,” writes Google software engineer Evan Gilbert in a blog post. “The next time your connections search, they could see your +1's directly in their search results, helping them find your recommendations when they're most useful."
You’ll need to be signed into your Google Account to see when friends and contacts have endorsed certain Web pages using the +1 button.
Google says it hopes the added button will help improve click-through rates for content and advertising and is encouraging Web site owners to add the button to their Web pages to get their search results to stand out more.
Source: “Google Rolls Out +1 Button for Web Sites,” TechSpot
Friday, June 3, 2011
On Housing, Don't Believe the Doom
On Housing, Don't Believe the Doom
Non-distressed properties sold by voluntary sellers have started to stabilize. That’s a sign that the worse could be over, Ajay Rajadhyaksha, the co-head of U.S. fixed income strategy at Barclays Capital, said in a research note on Friday.
An increase in voluntary sales over the summer should lead to another change in the mix of homes, in favor of non-distressed sales, and the aggregate index of home prices should stop declining and could even increase.
"In sum, there are many reasons to worry about the U.S. macroeconomic picture (the recent softening in the labor market, the U.S. fiscal picture, etc.) but the recent drop in U.S. home prices should not be one of them," according to Rajadhyaksha.
Source: “Don’t Believe the Doom on U.S. Housing,” CNBC.com, Patrick Allen (June 3, 2011)
Non-distressed properties sold by voluntary sellers have started to stabilize. That’s a sign that the worse could be over, Ajay Rajadhyaksha, the co-head of U.S. fixed income strategy at Barclays Capital, said in a research note on Friday.
An increase in voluntary sales over the summer should lead to another change in the mix of homes, in favor of non-distressed sales, and the aggregate index of home prices should stop declining and could even increase.
"In sum, there are many reasons to worry about the U.S. macroeconomic picture (the recent softening in the labor market, the U.S. fiscal picture, etc.) but the recent drop in U.S. home prices should not be one of them," according to Rajadhyaksha.
Source: “Don’t Believe the Doom on U.S. Housing,” CNBC.com, Patrick Allen (June 3, 2011)
Tuesday, May 31, 2011
Local Markets Heat up with Investors.
Survey: Local markets heat up with investors
CAMPBELL, Calif. – May 31, 2011 – Real estate investors, by three to one, will be more active in their local markets compared to typical homebuyers in the next 24 months; and 69 percent of investors say it’ll be easier to find properties in the near future, according to a survey of real estate investors released by Move, Inc., the management company overseeing Realtor.com.
The Move Investor survey suggests that local markets will be heating up with renewed investor interest and activity. Compared to a year ago, 62 percent of investors are paying more attention to home values in their local markets – only 43.5 percent say it will be harder to find bargains and 41.5 percent expect it to be easier to sell their properties in the next six months.
Meanwhile, 22 percent of investors are bullish and expect prices to rise in the next six to 12 months, and 53.5 percent expect prices to remain relatively the same. Twenty-three percent expect prices to fall in the next six to 12 months.
The Move Investor survey also found that investors are prepared to compete vigorously with traditional first-time homebuyers for hot deals. Two-thirds of investors (65.5 percent) said they expect that first-time buyers’ problems getting a mortgage will make it easier for investors to compete for properties. One in five investors (18.5 percent) say they’ll be cash-only buyers, a strategy that’s out of reach for most first-time buyers. Eight out of 10 (80.5 percent) expect cash discounts from sellers.
Today’s investors – not stereotypical, deal-driven flippers
Contrary to the tactics used by “flippers,” 50 percent of today’s real estate investors plan to hold their properties for five-plus years. Only 11 percent expect to sell within 12 months of purchase. Two-thirds (67.5 percent) say they’re investing for the long term.
Fifty-nine percent (59 percent) told Move they’re new to real estate investing, with 33.5 percent considering their first investment purchase and 8.5 percent in the process of buying and selling their first investment property. Another 17 percent said they just completed their first transaction and plan to make more. Only 36.5 percent have experience in more than one property transaction.
When it comes to repairs and maintenance, 56.5 percent of investors say the repair and maintenance of investment property has not been difficult. Moving forward, 42 percent plan to invest their own time and energy to improve, repair and maintain their properties. The rest said they’d hire a contractor for repairs (29.5 percent) or purchase move-in-ready properties (28 percent). The majority (65.7 percent), don’t expect repair costs to exceed 20 percent of the property’s purchase price.
“This data suggests today’s climate is hot for investing and is attracting a lot of new people that don’t fit the stereotypical deal-driven flippers that buy and sell properties quickly,” said Move, Inc. Chief Executive Officer Steve Berkowitz.
Investors combine cash and credit to snap up properties
While cash is king in many circles, 75.5 percent plan to combine cash and credit to purchase properties as they build their real estate portfolio. In fact, 59.5 percent plan to put less than half down on their next property purchase and they’ll finance the rest. Those planning to use more than 50 percent cash and finance the remainder account for 16 percent of today’s investors. Investors told Move the second most difficult challenge has been finding financing (57 percent).
“The fact that most real estate investors plan on combing cash and credit for their purchases goes against the conventional wisdom that investor transactions today are mostly cash-only sales,” says Berkowitz. “We were surprised to learn that 75 percent of investors are financing portions of their purchases. This suggests they’re seeing tremendous or once in a lifetime opportunities and may be tapping into credit or taking out second trusts on existing properties. The data also shows they’re expecting high returns to match the level of investment they’re making in an arena that is new to many investors.”
High risk leads to high ROI expectations
Based on the investments they’re making in today’s environment, real estate investors clearly expect high yield returns. Nearly half (48 percent) expect a profit of 20 percent or more from their property investments, a 4 percent annual rate of return over five years. Another 40 percent expect a profit of 10 percent, and only 6.5 percent expect a 5 percent or less return on investment. Half (50 percent) of today’s real estate investors plan to hold their properties for five-plus years.
Property investments gateway to homeownership for many
While the survey shows investors will outnumber traditional homebuyers three to one, nearly half (49 percent) plan to live in their investment property until it’s sold or turned into a rental property. Slightly more than half (56.5 percent) will put their investments to work as rental properties, and 28 percent plan to purchase vacation property that they’ll eventually sell. The Move Investor survey also found 30 percent of real estate investors are interested in buying retirement property as an investment.
“The survey suggests some first-time buyers may be looking at investing as a strategy to becoming homeowners,” Berkowitz said. “While today’s market is tough for some, it’s also motivating millions to take an unconventional approach and creatively search for new ways of entering the housing market.”
CAMPBELL, Calif. – May 31, 2011 – Real estate investors, by three to one, will be more active in their local markets compared to typical homebuyers in the next 24 months; and 69 percent of investors say it’ll be easier to find properties in the near future, according to a survey of real estate investors released by Move, Inc., the management company overseeing Realtor.com.
The Move Investor survey suggests that local markets will be heating up with renewed investor interest and activity. Compared to a year ago, 62 percent of investors are paying more attention to home values in their local markets – only 43.5 percent say it will be harder to find bargains and 41.5 percent expect it to be easier to sell their properties in the next six months.
Meanwhile, 22 percent of investors are bullish and expect prices to rise in the next six to 12 months, and 53.5 percent expect prices to remain relatively the same. Twenty-three percent expect prices to fall in the next six to 12 months.
The Move Investor survey also found that investors are prepared to compete vigorously with traditional first-time homebuyers for hot deals. Two-thirds of investors (65.5 percent) said they expect that first-time buyers’ problems getting a mortgage will make it easier for investors to compete for properties. One in five investors (18.5 percent) say they’ll be cash-only buyers, a strategy that’s out of reach for most first-time buyers. Eight out of 10 (80.5 percent) expect cash discounts from sellers.
Today’s investors – not stereotypical, deal-driven flippers
Contrary to the tactics used by “flippers,” 50 percent of today’s real estate investors plan to hold their properties for five-plus years. Only 11 percent expect to sell within 12 months of purchase. Two-thirds (67.5 percent) say they’re investing for the long term.
Fifty-nine percent (59 percent) told Move they’re new to real estate investing, with 33.5 percent considering their first investment purchase and 8.5 percent in the process of buying and selling their first investment property. Another 17 percent said they just completed their first transaction and plan to make more. Only 36.5 percent have experience in more than one property transaction.
When it comes to repairs and maintenance, 56.5 percent of investors say the repair and maintenance of investment property has not been difficult. Moving forward, 42 percent plan to invest their own time and energy to improve, repair and maintain their properties. The rest said they’d hire a contractor for repairs (29.5 percent) or purchase move-in-ready properties (28 percent). The majority (65.7 percent), don’t expect repair costs to exceed 20 percent of the property’s purchase price.
“This data suggests today’s climate is hot for investing and is attracting a lot of new people that don’t fit the stereotypical deal-driven flippers that buy and sell properties quickly,” said Move, Inc. Chief Executive Officer Steve Berkowitz.
Investors combine cash and credit to snap up properties
While cash is king in many circles, 75.5 percent plan to combine cash and credit to purchase properties as they build their real estate portfolio. In fact, 59.5 percent plan to put less than half down on their next property purchase and they’ll finance the rest. Those planning to use more than 50 percent cash and finance the remainder account for 16 percent of today’s investors. Investors told Move the second most difficult challenge has been finding financing (57 percent).
“The fact that most real estate investors plan on combing cash and credit for their purchases goes against the conventional wisdom that investor transactions today are mostly cash-only sales,” says Berkowitz. “We were surprised to learn that 75 percent of investors are financing portions of their purchases. This suggests they’re seeing tremendous or once in a lifetime opportunities and may be tapping into credit or taking out second trusts on existing properties. The data also shows they’re expecting high returns to match the level of investment they’re making in an arena that is new to many investors.”
High risk leads to high ROI expectations
Based on the investments they’re making in today’s environment, real estate investors clearly expect high yield returns. Nearly half (48 percent) expect a profit of 20 percent or more from their property investments, a 4 percent annual rate of return over five years. Another 40 percent expect a profit of 10 percent, and only 6.5 percent expect a 5 percent or less return on investment. Half (50 percent) of today’s real estate investors plan to hold their properties for five-plus years.
Property investments gateway to homeownership for many
While the survey shows investors will outnumber traditional homebuyers three to one, nearly half (49 percent) plan to live in their investment property until it’s sold or turned into a rental property. Slightly more than half (56.5 percent) will put their investments to work as rental properties, and 28 percent plan to purchase vacation property that they’ll eventually sell. The Move Investor survey also found 30 percent of real estate investors are interested in buying retirement property as an investment.
“The survey suggests some first-time buyers may be looking at investing as a strategy to becoming homeowners,” Berkowitz said. “While today’s market is tough for some, it’s also motivating millions to take an unconventional approach and creatively search for new ways of entering the housing market.”
Thursday, May 26, 2011
Increase proposed for FHA downpayments
WASHINGTON – May 25, 2011 – A Republican-led proposal circulated Monday would boost the downpayment requirement for mortgages backed by the Federal Housing Administration, a move that some industry experts said would shut potential homebuyers out of the market.
Borrowers who take out FHA-insured mortgages are permitted to put down as little as 3.5 percent, making those loans an especially attractive choice for first-time homebuyers. But as defaults rose during the housing market’s worst days, FHA’s cash reserves dwindled, creating concerns that taxpayers may have to come to the agency’s rescue.
The Republican proposal would require most FHA borrowers to put down at least 5 percent. Those who support the idea say that forcing borrowers to have more equity in their homes would better protect homeowners against default and thus improve the agency’s finances. The issue will be discussed Wednesday at a House Financial Services subcommittee hearing led by Rep. Judy Biggert (R-Ill.).
The proposal has not been formally introduced in legislative form. And it’s unlikely to gain traction without bipartisan support, said Jaret Seiberg, an analyst at MF Global Inc. But if enacted, its immediate impact on the housing market would be negative, he said. Gathering the upfront cash is often the biggest hurdle for those buying their first homes.
Demanding more money down “would make it even harder for first-time buyers to enter the housing market regardless of their incomes or earning potential,” Seiberg wrote in a note to clients Monday.
Mark A. Calabria, director of financial regulation studies at the Cato Institute, said larger downpayments would no doubt have some drag on the housing market. “But it’s a modest drag because it’s a fairly small change,” said Calabria, who is scheduled to testify at Wednesday’s hearing. “It’s a smart and reasonable thing to do.”
A similar Republican proposal stalled in the House last year after the Obama administration vehemently opposed it, warning that such an increase would undermine the already fragile housing market by shrinking the agency’s loan volume.
At a hearing last year, FHA Commissioner David H. Stevens told House lawmakers that raising the minimum downpayment to 5 percent would lower the agency’s loan volume by 40 percent in the next fiscal year and shut out 300,000 first-time homebuyers.
Since then, the FHA has raised its downpayment to 10 percent for borrowers with the poorest credit. In a report to Congress, the administration said it would consider raising FHA’s downpayment requirement as part of a broader effort to curb the government’s role in housing finance. Separately, the administration teamed up with banking regulators to propose a rule that would enable only those who put down 20 percent to get the lowest interest rates, though that rule does not apply to FHA borrowers.
The administration declined to comment Monday on the most recent Republican proposal. But at least one banking industry consultant, Brian Chappelle, plans to tell lawmakers Wednesday that the proposal is unnecessary, especially now that FHA has raised the fees it charges borrowers by 60 percent since 2008 and dramatically improved the credit quality of its borrowers in recent years.
Copyright © 2011 washingtonpost.com, Dina ElBoghdady
Borrowers who take out FHA-insured mortgages are permitted to put down as little as 3.5 percent, making those loans an especially attractive choice for first-time homebuyers. But as defaults rose during the housing market’s worst days, FHA’s cash reserves dwindled, creating concerns that taxpayers may have to come to the agency’s rescue.
The Republican proposal would require most FHA borrowers to put down at least 5 percent. Those who support the idea say that forcing borrowers to have more equity in their homes would better protect homeowners against default and thus improve the agency’s finances. The issue will be discussed Wednesday at a House Financial Services subcommittee hearing led by Rep. Judy Biggert (R-Ill.).
The proposal has not been formally introduced in legislative form. And it’s unlikely to gain traction without bipartisan support, said Jaret Seiberg, an analyst at MF Global Inc. But if enacted, its immediate impact on the housing market would be negative, he said. Gathering the upfront cash is often the biggest hurdle for those buying their first homes.
Demanding more money down “would make it even harder for first-time buyers to enter the housing market regardless of their incomes or earning potential,” Seiberg wrote in a note to clients Monday.
Mark A. Calabria, director of financial regulation studies at the Cato Institute, said larger downpayments would no doubt have some drag on the housing market. “But it’s a modest drag because it’s a fairly small change,” said Calabria, who is scheduled to testify at Wednesday’s hearing. “It’s a smart and reasonable thing to do.”
A similar Republican proposal stalled in the House last year after the Obama administration vehemently opposed it, warning that such an increase would undermine the already fragile housing market by shrinking the agency’s loan volume.
At a hearing last year, FHA Commissioner David H. Stevens told House lawmakers that raising the minimum downpayment to 5 percent would lower the agency’s loan volume by 40 percent in the next fiscal year and shut out 300,000 first-time homebuyers.
Since then, the FHA has raised its downpayment to 10 percent for borrowers with the poorest credit. In a report to Congress, the administration said it would consider raising FHA’s downpayment requirement as part of a broader effort to curb the government’s role in housing finance. Separately, the administration teamed up with banking regulators to propose a rule that would enable only those who put down 20 percent to get the lowest interest rates, though that rule does not apply to FHA borrowers.
The administration declined to comment Monday on the most recent Republican proposal. But at least one banking industry consultant, Brian Chappelle, plans to tell lawmakers Wednesday that the proposal is unnecessary, especially now that FHA has raised the fees it charges borrowers by 60 percent since 2008 and dramatically improved the credit quality of its borrowers in recent years.
Copyright © 2011 washingtonpost.com, Dina ElBoghdady
Friday, May 20, 2011
Fixed mortgage rates touch new low for 2011
NEW YORK – May 20, 2011 – Fixed mortgage rates fell this week to the lowest point of the year, offering incentive for homeowners to save money by refinancing their loans.
Freddie Mac said Thursday that the average rate on the 30-year loan fell to 4.61 percent. That’s down from 4.63 percent and the lowest level since mid-December.
The average rate on the 15-year fixed mortgage, a popular refinance option, slipped to 3.80 percent from 3.82 percent. That marked the lowest point since late November.
Rates track the yield on the 10-year Treasury note, which fell to the lowest level of the year this week.
Low rates haven’t been enough to jumpstart the weak housing market. Fewer people bought previously occupied homes in April, the National Association of Realtors said Thursday. Sales fell to a seasonally adjusted annual rate of 5.05 million units, far below the 6 million homes a year that economists consider a healthy market.
However, the number of borrowers looking to refinance is now at the highest level since the second week of December, according to the Mortgage Bankers Association. Refinance activity has increased 33 percent over the last five weeks, mirroring the steady decline in rates.
Despite the gains, refinancing is only at half the level it reached in the fall of last year when mortgage rates fell to record lows. The rate on the 30-year home loan hit a four-decade low of 4.17 percent in November. The 15-year mortgage rate reached 3.57 percent that same month, the lowest level on records dating back to 1991.
“We’re not seeing a (refinancing) boom by any means,” said Pava Leyrer, president of Heritage National Mortgage in Michigan.
She said many borrowers refinanced when rates were lower last year. Others don’t have enough equity in their homes because values have fallen too much or their credit isn’t polished enough for them to qualify.
And those who may shave off a percentage point or more from their mortgage rate face higher closing costs this year because of a recent fee increase for appraisals, title insurance and other costs. That could offset any savings from an interest rate reduction.
“If it’s purely a rate decision, the difference needs to be one and a half percentage points,” said Ritch Workman, co-owner of Workman Mortgage in Melbourne, Fla.
Workman has noticed an uptick in applications for purchase mortgages. Would-be buyers are taking advantage of the combination of low rates and declining home prices.
To calculate average mortgage rates, Freddie Mac collects rates from lenders across the country on Monday through Wednesday of each week. Rates often fluctuate significantly, even within a single day.
The average rate on a five-year adjustable-rate mortgage rose to 3.48 percent from 3.41 percent. The five-year adjustable-rate loan hit 3.25 percent last month, the lowest rate on records dating back to January 2005.
The average rate on a one-year adjustable-rate loan also increased to 3.15 percent from 3.11 percent, the lowest level for the rate in the last year.
The rates do not include add-on fees, known as points. One point is equal to 1 percent of the total loan amount. The average fee for the 30-year fixed loan and 15-year fixed loan in Freddie Mac’s survey was 0.7 point. The average fee for the five-year ARM and the 1-year ARM was 0.6 point.
Copyright 2011 The Associated Press, Janna Herron (AP Real Estate Writer). All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Freddie Mac said Thursday that the average rate on the 30-year loan fell to 4.61 percent. That’s down from 4.63 percent and the lowest level since mid-December.
The average rate on the 15-year fixed mortgage, a popular refinance option, slipped to 3.80 percent from 3.82 percent. That marked the lowest point since late November.
Rates track the yield on the 10-year Treasury note, which fell to the lowest level of the year this week.
Low rates haven’t been enough to jumpstart the weak housing market. Fewer people bought previously occupied homes in April, the National Association of Realtors said Thursday. Sales fell to a seasonally adjusted annual rate of 5.05 million units, far below the 6 million homes a year that economists consider a healthy market.
However, the number of borrowers looking to refinance is now at the highest level since the second week of December, according to the Mortgage Bankers Association. Refinance activity has increased 33 percent over the last five weeks, mirroring the steady decline in rates.
Despite the gains, refinancing is only at half the level it reached in the fall of last year when mortgage rates fell to record lows. The rate on the 30-year home loan hit a four-decade low of 4.17 percent in November. The 15-year mortgage rate reached 3.57 percent that same month, the lowest level on records dating back to 1991.
“We’re not seeing a (refinancing) boom by any means,” said Pava Leyrer, president of Heritage National Mortgage in Michigan.
She said many borrowers refinanced when rates were lower last year. Others don’t have enough equity in their homes because values have fallen too much or their credit isn’t polished enough for them to qualify.
And those who may shave off a percentage point or more from their mortgage rate face higher closing costs this year because of a recent fee increase for appraisals, title insurance and other costs. That could offset any savings from an interest rate reduction.
“If it’s purely a rate decision, the difference needs to be one and a half percentage points,” said Ritch Workman, co-owner of Workman Mortgage in Melbourne, Fla.
Workman has noticed an uptick in applications for purchase mortgages. Would-be buyers are taking advantage of the combination of low rates and declining home prices.
To calculate average mortgage rates, Freddie Mac collects rates from lenders across the country on Monday through Wednesday of each week. Rates often fluctuate significantly, even within a single day.
The average rate on a five-year adjustable-rate mortgage rose to 3.48 percent from 3.41 percent. The five-year adjustable-rate loan hit 3.25 percent last month, the lowest rate on records dating back to January 2005.
The average rate on a one-year adjustable-rate loan also increased to 3.15 percent from 3.11 percent, the lowest level for the rate in the last year.
The rates do not include add-on fees, known as points. One point is equal to 1 percent of the total loan amount. The average fee for the 30-year fixed loan and 15-year fixed loan in Freddie Mac’s survey was 0.7 point. The average fee for the five-year ARM and the 1-year ARM was 0.6 point.
Copyright 2011 The Associated Press, Janna Herron (AP Real Estate Writer). All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Wednesday, May 18, 2011
The 10 Most Walkable Cities
Buyers have expressed more preferences to walkable communities in home-shopping surveys.
Walk Friendly Communities, a national recognition program, recently recognized the top places in the country for walking, taking into account such factors as safety, space in communities devoted to pedestrians, as well as whether walking is integrated into the city’s overall urban planning process.
Here is its list of the top 10 most walkable cities:
1. Seattle, Wash.
2. Ann Arbor, Mich.
3. Arlington, Va.
4. Hoboken, N.J.
5. Santa Barbara, Calif.
6. Charlottesville, Va.
7. Decatur, Ga.
8. Austin, Texas
9. Charlotte, N.C.
10. Flagstaff, Ariz.
Source: “America’s Most Walkable Cities,” Forbes (May 6, 2011)
Walk Friendly Communities, a national recognition program, recently recognized the top places in the country for walking, taking into account such factors as safety, space in communities devoted to pedestrians, as well as whether walking is integrated into the city’s overall urban planning process.
Here is its list of the top 10 most walkable cities:
1. Seattle, Wash.
2. Ann Arbor, Mich.
3. Arlington, Va.
4. Hoboken, N.J.
5. Santa Barbara, Calif.
6. Charlottesville, Va.
7. Decatur, Ga.
8. Austin, Texas
9. Charlotte, N.C.
10. Flagstaff, Ariz.
Source: “America’s Most Walkable Cities,” Forbes (May 6, 2011)
Friday, May 6, 2011
What Celebrities Desire in Homes
Daily Real Estate News | May 6, 2011 | Share
What Celebrities Desire in Homes
Celebrities often have slightly different priorities when shopping for a home than the average home buyer. Here are a few top items often found on their priority list when home-shopping, according to the Zillow Blog.
1. Privacy. Most often a top priority, celebrities usually want a gated, secured home. “It’s a huge issue,” says Jade Mills, a Coldwell Banker real estate pro who has worked with actress Jennifer Aniston. “They want to be able to come home and get away from the paparazzi and want privacy when they go into their yard. They usually have foliage [and] hedges so that people can’t look in.” Ultra-privacy goes for condos too. For example, Aniston recently bought a penthouse condo in New York City, as well as the floor directly beneath it, to ensure more privacy.
2. Giant closets. Celebs can’t hold all of that glam without lots of oversized closets. “A lot of the female celebrities and even the male, love giant closets—over-the-top closets—because they have a tremendous amount of clothes,” says Gary Gold of Hilton & Hyland in Beverly Hills. Some celebrities may even convert extra rooms into expansive, customized closets.
3. Home theaters. They also want a comfortable place to view themselves on screen. Home theaters are often high on their priority list, says Mauricio Umansky of Hilton & Hyland in Los Angeles. “They’re in that business and they expect it,” Umansky says.
4. Hobby rooms. Celebrities also tend to like flexible spaces--rooms that are blank slates that they can transform into whatever they desire, whether that’s a hair salon, home office, or even a guest house. “Each [celebrity] has their own thing and needs a hobby room, a studio, a dark room, or a computer room,” Umansky says.
But, of course, celebrities--just like any other buyer--may have a few odd requests from time to time too. Gold says he once had to try to find a place for a celebrity that could accommodate his 9-month-old, 160-pound mountain lion.
Source: “What Do Celebrities Want in a Home?” Zillow Blog (May 2, 2011)
What Celebrities Desire in Homes
Celebrities often have slightly different priorities when shopping for a home than the average home buyer. Here are a few top items often found on their priority list when home-shopping, according to the Zillow Blog.
1. Privacy. Most often a top priority, celebrities usually want a gated, secured home. “It’s a huge issue,” says Jade Mills, a Coldwell Banker real estate pro who has worked with actress Jennifer Aniston. “They want to be able to come home and get away from the paparazzi and want privacy when they go into their yard. They usually have foliage [and] hedges so that people can’t look in.” Ultra-privacy goes for condos too. For example, Aniston recently bought a penthouse condo in New York City, as well as the floor directly beneath it, to ensure more privacy.
2. Giant closets. Celebs can’t hold all of that glam without lots of oversized closets. “A lot of the female celebrities and even the male, love giant closets—over-the-top closets—because they have a tremendous amount of clothes,” says Gary Gold of Hilton & Hyland in Beverly Hills. Some celebrities may even convert extra rooms into expansive, customized closets.
3. Home theaters. They also want a comfortable place to view themselves on screen. Home theaters are often high on their priority list, says Mauricio Umansky of Hilton & Hyland in Los Angeles. “They’re in that business and they expect it,” Umansky says.
4. Hobby rooms. Celebrities also tend to like flexible spaces--rooms that are blank slates that they can transform into whatever they desire, whether that’s a hair salon, home office, or even a guest house. “Each [celebrity] has their own thing and needs a hobby room, a studio, a dark room, or a computer room,” Umansky says.
But, of course, celebrities--just like any other buyer--may have a few odd requests from time to time too. Gold says he once had to try to find a place for a celebrity that could accommodate his 9-month-old, 160-pound mountain lion.
Source: “What Do Celebrities Want in a Home?” Zillow Blog (May 2, 2011)
Wednesday, May 4, 2011
Landlords Say They'll Rent to the Foreclosed
Daily Real Estate News | May 4, 2011 | 
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Landlords Say They'll Rent to the Foreclosed ShareEighty-two percent of independent landlords say they would rent to someone who had lost a home in foreclosure, if the applicant had otherwise good credit, according to a new survey by The National Association of Independent Landlords.
"Landlords typically won't rent to applicants with poor credit--and a foreclosure will absolutely slam someone's scores,” says Tracey Benson, president of The National Association of Independent Landlords. “The exception is when they see people who have paid their bills their whole life, but lost their job, can't meet their mortgage and must hand their keys back to the bank.”
Benson says that applicants with a foreclosure aren’t necessarily bad credit risks. “Often, they lost their jobs and homes through no fault of their own," she says.
As such, "because of this abundance of defaults, there is a greater need for rental property, so landlords should carefully vet applicants," Benson says, adding that landlords should do a thorough background check to determine whether defaulting applicants were a victim to financial woes or following a lifelong trend of not paying bills.
Source: “Most Landlords Say They Would Rent to People Who Lost Homes to Foreclosure, The National Association of Independent Landlords Finds,” PRNewswire (April 20, 2011)
Tuesday, May 3, 2011
Buyers Bypass 'Fixer-Upper,' Want Move-in Ready
Daily Real Estate News | May 3, 2011 | Share
Buyers Bypass 'Fixer-Upper,' Want Move-in Ready
More buyers are shunning “as-is” properties in favor of homes that are in move-in condition, according to real estate professionals and recent surveys.
For example, a Coldwell Banker survey recently found that 87 percent of first-time buyers say they desire a “move-in” ready home.
“This is absolutely the story of this market. It seems buyers will pay a premium, engage in a bidding war, and even overpay just to avoid buying a ‘project’ house,” says Beth Freed of Terrie O’Connor REALTORS® in Ridgewood, N.J.
As such, real estate pros are advising their sellers to fix up their homes for quicker sales. “There is no question homes that have been spruced up for the market sell quicker,” says Kate Conover with RE/MAX in Saddle River, N.J.
That doesn’t mean major, costly renovations that sellers won’t likely get back on the sale price either, she says. Instead of a major kitchen or bath renovation, just repainting the home or removing the clutter can go a long way in freshening up a home. Also, don’t forget about curb appeal: Freshen up the flowerpots, trim the bushes, and paint the front door, if it’s starting to show wear and tear.
Also with buyers wanting “move-in” ready homes, real estate pros say it’s crucial that sellers address any major maintenance and safety issues—such as leaky roofs—before the home even goes on the market.
Source: “Home Buyers Shun ‘Fixer-Uppers,” RISMedia (May 2, 2011)
Buyers Bypass 'Fixer-Upper,' Want Move-in Ready
More buyers are shunning “as-is” properties in favor of homes that are in move-in condition, according to real estate professionals and recent surveys.
For example, a Coldwell Banker survey recently found that 87 percent of first-time buyers say they desire a “move-in” ready home.
“This is absolutely the story of this market. It seems buyers will pay a premium, engage in a bidding war, and even overpay just to avoid buying a ‘project’ house,” says Beth Freed of Terrie O’Connor REALTORS® in Ridgewood, N.J.
As such, real estate pros are advising their sellers to fix up their homes for quicker sales. “There is no question homes that have been spruced up for the market sell quicker,” says Kate Conover with RE/MAX in Saddle River, N.J.
That doesn’t mean major, costly renovations that sellers won’t likely get back on the sale price either, she says. Instead of a major kitchen or bath renovation, just repainting the home or removing the clutter can go a long way in freshening up a home. Also, don’t forget about curb appeal: Freshen up the flowerpots, trim the bushes, and paint the front door, if it’s starting to show wear and tear.
Also with buyers wanting “move-in” ready homes, real estate pros say it’s crucial that sellers address any major maintenance and safety issues—such as leaky roofs—before the home even goes on the market.
Source: “Home Buyers Shun ‘Fixer-Uppers,” RISMedia (May 2, 2011)
Monday, May 2, 2011
Bailing on Mortgage Not a Good Idea
Daily Real Estate News | May 2, 2011 | Share
Bailing on Mortgage Not a Good Idea
An estimated 11 million home owners owe more on their mortgage than their property is currently worth. That’s made more home owners consider walking away from their mortgage and home ownership, even those who can still comfortably afford to make their payments (known as “strategic default”).
Walking away from a mortgage usually results in either a short sale or foreclosure. So what are the consequences of walking away? There may be far more consequences than what most home owners ever considered.
The consequences include everything from badly affected credit to potential tax consequences and deficiency risks. There are even possible professional implications, Justin McHood with Academy Mortgage in Chandler, Ariz., warns in an article at Zillow.com.
Home owners' credit scores will be badly hit regardless of whether they attempt a short sale or have their property foreclosed on. (See How Missed Mortgage Payments Hurt Credit Scores)
There also could be the potential for deficiency risks when walking away from a home, which largely varies from state to state. (View anti-deficiency laws by state.) In some states, lenders may sue you for the difference between what you owe and what your short-sale or foreclosure proceeds are, McHood notes.
Home owners considering walking away also should weigh the potential difficulty they may face from moving too. For example, if moving into a rental property, they’ll have to convince a landlord to rent to them after they have the red flag of missed mortgage payments on their credit record. And paying for moving expenses — which many walkaways fail to consider — can quickly add up too.
Plus, home owners may find professional consequences from walking away from a mortgage, as the number of employers eyeing employees’ credit profiles continues to grow.
Source: “The Consequence of Walking Away,” Zillow.com (April 27, 2011)
Bailing on Mortgage Not a Good Idea
An estimated 11 million home owners owe more on their mortgage than their property is currently worth. That’s made more home owners consider walking away from their mortgage and home ownership, even those who can still comfortably afford to make their payments (known as “strategic default”).
Walking away from a mortgage usually results in either a short sale or foreclosure. So what are the consequences of walking away? There may be far more consequences than what most home owners ever considered.
The consequences include everything from badly affected credit to potential tax consequences and deficiency risks. There are even possible professional implications, Justin McHood with Academy Mortgage in Chandler, Ariz., warns in an article at Zillow.com.
Home owners' credit scores will be badly hit regardless of whether they attempt a short sale or have their property foreclosed on. (See How Missed Mortgage Payments Hurt Credit Scores)
There also could be the potential for deficiency risks when walking away from a home, which largely varies from state to state. (View anti-deficiency laws by state.) In some states, lenders may sue you for the difference between what you owe and what your short-sale or foreclosure proceeds are, McHood notes.
Home owners considering walking away also should weigh the potential difficulty they may face from moving too. For example, if moving into a rental property, they’ll have to convince a landlord to rent to them after they have the red flag of missed mortgage payments on their credit record. And paying for moving expenses — which many walkaways fail to consider — can quickly add up too.
Plus, home owners may find professional consequences from walking away from a mortgage, as the number of employers eyeing employees’ credit profiles continues to grow.
Source: “The Consequence of Walking Away,” Zillow.com (April 27, 2011)
Monday, April 25, 2011
Missed Mortgage Payments Hurt Credit Scores
Daily Real Estate News | April 25, 2011 | Share
Missed Mortgage Payments Hurt Credit Scores
Missed mortgage payments, short sales, and foreclosures can all drastically bring down a credit score.
Lenders use credit scores to measure how well a person handles debt. Credit scores range from 300 to 850, with 650 and below considered poor credit. A mortgage makes up a big part of a person’s credit score and often is the most important part of a person’s credit profile.
And just missing a single mortgage payment by 30 days can ruin a credit score, say FICO and VantageScore, which have studied the impact mortgages can have on credit scores. For borrowers, that can be nearly as destructive as a foreclosure to a credit score, according to the companies.
On the other hand, loan modifications, which is when lenders approve new loan terms, have a “very, very minimal” impact to credit scores, possibly dropping the borrower’s score by 10 or 15 points, Sarah Davies, the senior vice president for analytics at VantageScore, told The New York Times.
A good credit score is important not just for financing home purchases, but employers increasingly check credit as well as landlords when seeking rentals. Also, poor credit scores can also mean higher costs on car loans and credit cards.
How a Credit Score Is Affected
FICO evaluated three various scenarios of mortgage holders — a borrower with a great credit score (780), a borrower with good credit (720), and a poor credit borrower (680) — in a study it conducted last month. Here’s the impact FICO found:
▪ 30 days late on a mortgage payment: The 780 credit score borrower has her credit score fall to 670-690. The 720 credit score borrower has his fall to 630-650. The 680 credit score borrower falls to 600-620.
▪ Short sale, deed in lieu of foreclosure, or settlement, assuming the balance has been wiped out: The 780 credit score borrower falls to 655-675; the 720 credit score falls to 605-625; and the 680 credit score drops to 610-630.
▪ Foreclosure, or short sale with a deficiency balance owed: The 780 credit score drops to 620-640; the 720 credit score falls to 570-590; and the 680 credit score decreases to 575-595.
Source: “Fallout From a Poor Credit Score,” The New York Times (April 24, 2011)
Missed Mortgage Payments Hurt Credit Scores
Missed mortgage payments, short sales, and foreclosures can all drastically bring down a credit score.
Lenders use credit scores to measure how well a person handles debt. Credit scores range from 300 to 850, with 650 and below considered poor credit. A mortgage makes up a big part of a person’s credit score and often is the most important part of a person’s credit profile.
And just missing a single mortgage payment by 30 days can ruin a credit score, say FICO and VantageScore, which have studied the impact mortgages can have on credit scores. For borrowers, that can be nearly as destructive as a foreclosure to a credit score, according to the companies.
On the other hand, loan modifications, which is when lenders approve new loan terms, have a “very, very minimal” impact to credit scores, possibly dropping the borrower’s score by 10 or 15 points, Sarah Davies, the senior vice president for analytics at VantageScore, told The New York Times.
A good credit score is important not just for financing home purchases, but employers increasingly check credit as well as landlords when seeking rentals. Also, poor credit scores can also mean higher costs on car loans and credit cards.
How a Credit Score Is Affected
FICO evaluated three various scenarios of mortgage holders — a borrower with a great credit score (780), a borrower with good credit (720), and a poor credit borrower (680) — in a study it conducted last month. Here’s the impact FICO found:
▪ 30 days late on a mortgage payment: The 780 credit score borrower has her credit score fall to 670-690. The 720 credit score borrower has his fall to 630-650. The 680 credit score borrower falls to 600-620.
▪ Short sale, deed in lieu of foreclosure, or settlement, assuming the balance has been wiped out: The 780 credit score borrower falls to 655-675; the 720 credit score falls to 605-625; and the 680 credit score drops to 610-630.
▪ Foreclosure, or short sale with a deficiency balance owed: The 780 credit score drops to 620-640; the 720 credit score falls to 570-590; and the 680 credit score decreases to 575-595.
Source: “Fallout From a Poor Credit Score,” The New York Times (April 24, 2011)
Tuesday, April 19, 2011
Zillow Goes Public, Files for $52 Million IPO
Daily Real Estate News | April 19, 2011 | Share
Zillow Goes Public, Files for $52 Million IPO
You may soon be able to buy stock in Zillow. The Seattle-based real estate Web site filed on Monday preliminary documents for an initial public offering. The company hopes to raise about $51.75 million for its IPO.
Zillow has not yet disclosed how many shares it intends to sell or the price for each share.
Technology Crossover Ventures and PAR Investment Partners have already agreed to buy a total of $5.5 million of common stock from Zillow, CNNMoney.com reports.
Zillow, founded in 2004 and originally known for its popular “Zestimates” home value estimates on homes across the U.S., has seen its Web traffic quickly grow. In March, it boasted 19.4 million unique users from its Web site and mobile app, a more than 90 percent year-over-year increase in traffic. Its revenue has also increased significantly. In 2010, Zillow’s revenue increased by 74 percent to $30.5 million, according to the Securities and Exchange Commission filing.
Zillow Goes Public, Files for $52 Million IPO
You may soon be able to buy stock in Zillow. The Seattle-based real estate Web site filed on Monday preliminary documents for an initial public offering. The company hopes to raise about $51.75 million for its IPO.
Zillow has not yet disclosed how many shares it intends to sell or the price for each share.
Technology Crossover Ventures and PAR Investment Partners have already agreed to buy a total of $5.5 million of common stock from Zillow, CNNMoney.com reports.
Zillow, founded in 2004 and originally known for its popular “Zestimates” home value estimates on homes across the U.S., has seen its Web traffic quickly grow. In March, it boasted 19.4 million unique users from its Web site and mobile app, a more than 90 percent year-over-year increase in traffic. Its revenue has also increased significantly. In 2010, Zillow’s revenue increased by 74 percent to $30.5 million, according to the Securities and Exchange Commission filing.
Monday, April 18, 2011
5 Most Innovative Mobile Apps
Daily Real Estate News | April 18, 2011 | Share
5 'Most Innovative' Mobile Apps
PC World recently released its top picks for most innovative apps for 2011 — mobile apps for tablets and smartphones that have the potential of making your life easier. Here are five free apps that made the list for iPhone or Android:
1. Fring: An upcoming version of this app will offer free video group calls with up to four people at once. (A beta is currently available.)
Platform: Apple’s iOS, Android
Price: Free
2. UpSoundDown: You can put your phone on speakerphone mode automatically by just laying your phone down on a table or turning the phone upside down like you’re using it as a microphone. When you pick the phone back up, you’ll be able to use the handset again.
Platform: Android
Price: Free
3. Zite: This app learns what you like to read and then scans your Facebook and Twitter feeds for news based on your reading habits. It then populates a virtual magazine with content that is tailored to your reading habits.
Platform: Apple iOS
Price: Free
4. Adobe Photoshop Express: You can manipulate photos using this app’s simple features on your iPhone or iPad and then store your photos on the Internet to access from anywhere. Coming soon: Photoshop for iPad, which works like a desktop version of the Photoshop software, which includes layers and effect features (price to be determined for iPad version).
Platform: Apple iOS
Price: Free
5. iSwifter: iPad lovers will appreciate this app, which allows you to watch Flash videos and view Web site animations.
Platform: Apple iOS
Price: Free
Source: “The Top 15 Innovative Mobile Apps in 2011,” InfoWorld (April 2011)
More resources:
Webinar: Are Tablets the Future of Computing for Real Estate?
Browse all of today's news
Daily Real Estate News | April 18, 2011 | Share
5 'Most Innovative' Mobile Apps
PC World recently released its top picks for most innovative apps for 2011 — mobile apps for tablets and smartphones that have the potential of making your life easier. Here are five free apps that made the list for iPhone or Android:
1. Fring: An upcoming version of this app will offer free video group calls with up to four people at once. (A beta is currently available.)
Platform: Apple’s iOS, Android
Price: Free
2. UpSoundDown: You can put your phone on speakerphone mode automatically by just laying your phone down on a table or turning the phone upside down like you’re using it as a microphone. When you pick the phone back up, you’ll be able to use the handset again.
Platform: Android
Price: Free
3. Zite: This app learns what you like to read and then scans your Facebook and Twitter feeds for news based on your reading habits. It then populates a virtual magazine with content that is tailored to your reading habits.
Platform: Apple iOS
Price: Free
4. Adobe Photoshop Express: You can manipulate photos using this app’s simple features on your iPhone or iPad and then store your photos on the Internet to access from anywhere. Coming soon: Photoshop for iPad, which works like a desktop version of the Photoshop software, which includes layers and effect features (price to be determined for iPad version).
Platform: Apple iOS
Price: Free
5. iSwifter: iPad lovers will appreciate this app, which allows you to watch Flash videos and view Web site animations.
Platform: Apple iOS
Price: Free
Source: “The Top 15 Innovative Mobile Apps in 2011,” InfoWorld (April 2011)
More resources:
Webinar: Are Tablets the Future of Computing for Real Estate?
Browse all of today's news
5 'Most Innovative' Mobile Apps
PC World recently released its top picks for most innovative apps for 2011 — mobile apps for tablets and smartphones that have the potential of making your life easier. Here are five free apps that made the list for iPhone or Android:
1. Fring: An upcoming version of this app will offer free video group calls with up to four people at once. (A beta is currently available.)
Platform: Apple’s iOS, Android
Price: Free
2. UpSoundDown: You can put your phone on speakerphone mode automatically by just laying your phone down on a table or turning the phone upside down like you’re using it as a microphone. When you pick the phone back up, you’ll be able to use the handset again.
Platform: Android
Price: Free
3. Zite: This app learns what you like to read and then scans your Facebook and Twitter feeds for news based on your reading habits. It then populates a virtual magazine with content that is tailored to your reading habits.
Platform: Apple iOS
Price: Free
4. Adobe Photoshop Express: You can manipulate photos using this app’s simple features on your iPhone or iPad and then store your photos on the Internet to access from anywhere. Coming soon: Photoshop for iPad, which works like a desktop version of the Photoshop software, which includes layers and effect features (price to be determined for iPad version).
Platform: Apple iOS
Price: Free
5. iSwifter: iPad lovers will appreciate this app, which allows you to watch Flash videos and view Web site animations.
Platform: Apple iOS
Price: Free
Source: “The Top 15 Innovative Mobile Apps in 2011,” InfoWorld (April 2011)
More resources:
Webinar: Are Tablets the Future of Computing for Real Estate?
Browse all of today's news
Daily Real Estate News | April 18, 2011 | Share
5 'Most Innovative' Mobile Apps
PC World recently released its top picks for most innovative apps for 2011 — mobile apps for tablets and smartphones that have the potential of making your life easier. Here are five free apps that made the list for iPhone or Android:
1. Fring: An upcoming version of this app will offer free video group calls with up to four people at once. (A beta is currently available.)
Platform: Apple’s iOS, Android
Price: Free
2. UpSoundDown: You can put your phone on speakerphone mode automatically by just laying your phone down on a table or turning the phone upside down like you’re using it as a microphone. When you pick the phone back up, you’ll be able to use the handset again.
Platform: Android
Price: Free
3. Zite: This app learns what you like to read and then scans your Facebook and Twitter feeds for news based on your reading habits. It then populates a virtual magazine with content that is tailored to your reading habits.
Platform: Apple iOS
Price: Free
4. Adobe Photoshop Express: You can manipulate photos using this app’s simple features on your iPhone or iPad and then store your photos on the Internet to access from anywhere. Coming soon: Photoshop for iPad, which works like a desktop version of the Photoshop software, which includes layers and effect features (price to be determined for iPad version).
Platform: Apple iOS
Price: Free
5. iSwifter: iPad lovers will appreciate this app, which allows you to watch Flash videos and view Web site animations.
Platform: Apple iOS
Price: Free
Source: “The Top 15 Innovative Mobile Apps in 2011,” InfoWorld (April 2011)
More resources:
Webinar: Are Tablets the Future of Computing for Real Estate?
Browse all of today's news
Tuesday, April 12, 2011
Avoid Sellers' Worst Mistakes
Daily Real Estate News | April 12, 2011 | Share
Avoid Sellers' Worst Mistakes
In a buyer’s market, sellers have little room for error when putting their home on the market or they risk having their property linger. Sellers should take caution to avoid the following common traps, according to a recent article at MSNBC.com.
1. Overpricing the home. Home values have dropped considerably since its peak in 2006, but sellers still are often tempted to list a home based on what they paid for it. Eventually they realize their error and have to reduce their price, sometimes several times. In the past month, 23 percent of homes listed for sale on Zillow have reduced their price.
2. Relying too much on just comps. Size up your competition currently on the market, not just the homes that have already sold. Evaluate homes with a listing price similar to yours to see how well yours stacks up against the competitions and how you can differentiate.
3. Failing to take into account the home’s web appeal. Photos are key when marketing a home online. Be sure to include lots of high-resolution photos of the interior, including of the areas in a home that buyers most care about, such as kitchen, living spaces, and bathrooms, experts say.
4. Hovering during showings. Sellers certainly shouldn’t be home for showings, but as a seller’s agent, either should you. Lurking sellers or seller agents may make buyers nervous. Other real estate agents often want privacy with their buyers so they can gather true feedback about the house.
Source: “Six Common Mistakes That Home Sellers Make,” MSNBC.com (April 11, 2011)
Read more:
Easy Fixes for 4 Household Problems
Browse all of today's news
Avoid Sellers' Worst Mistakes
In a buyer’s market, sellers have little room for error when putting their home on the market or they risk having their property linger. Sellers should take caution to avoid the following common traps, according to a recent article at MSNBC.com.
1. Overpricing the home. Home values have dropped considerably since its peak in 2006, but sellers still are often tempted to list a home based on what they paid for it. Eventually they realize their error and have to reduce their price, sometimes several times. In the past month, 23 percent of homes listed for sale on Zillow have reduced their price.
2. Relying too much on just comps. Size up your competition currently on the market, not just the homes that have already sold. Evaluate homes with a listing price similar to yours to see how well yours stacks up against the competitions and how you can differentiate.
3. Failing to take into account the home’s web appeal. Photos are key when marketing a home online. Be sure to include lots of high-resolution photos of the interior, including of the areas in a home that buyers most care about, such as kitchen, living spaces, and bathrooms, experts say.
4. Hovering during showings. Sellers certainly shouldn’t be home for showings, but as a seller’s agent, either should you. Lurking sellers or seller agents may make buyers nervous. Other real estate agents often want privacy with their buyers so they can gather true feedback about the house.
Source: “Six Common Mistakes That Home Sellers Make,” MSNBC.com (April 11, 2011)
Read more:
Easy Fixes for 4 Household Problems
Browse all of today's news
Friday, April 8, 2011
4 mistakes to avoid when buying a foreclosure
ORLANDO, Fla. – April 8, 2011 – Foreclosures continue to flood real estate markets across the country, and buyers are looking to cash in on what they view as some of the best real estate deals. But experts say that while some foreclosures are a great purchase, buyers need to be cautious before jumping in. They must make sure they’re really getting a bargain.
Dan Steward, president of Pillar to Post Professional Home Inspections, advises buyers considering a foreclosure to avoid the following top mistakes:
1. Don’t judge a house by looks alone. A $2 million mansion may look fabulous but have mold hiding beneath the walls or need numerous, costly repairs. A fixer upper, on the other hand, may look rundown but have excellent bones and be repaired at a reasonable cost. A home inspection prior to purchasing a property can help buyers determine if they might be getting in over their head, Steward says. He cautions buyers to not just rely on previous inspections, however, since vacant homes can deteriorate rapidly.
2. Don’t focus on price alone. Buyers may focus on the ultra-low price so much that they forget to factor in other qualities, such as the home’s school district, view, location and local crime rate. Steward cautions buyers not to assume that a previous owner’s financial problems cause all foreclosures.
3. Don’t be tempted to “flip.” Purchasing a home at bargain price, updating it and trying to sell it for a lot more may seem tempting, but Steward warns buyers to be cautious. Unless the buyers are pros at house flipping, they’ll likely run into several novice mistakes in trying to make fast money on flipping a foreclosure. Steward recommends buyers consult a real estate professional, home inspector and contractors before considering a flip.
4. Don’t go over budget. Foreclosures often require some fixes so buyers need to make sure they have the money to afford needed repairs. Steward recommends that buyers have at least half of the money in cash for needed repairs. He says that buyers will want to avoid taking more loans than needed, particularly private loans, because the interest on them will slowly chip away at their initial foreclosure bargain.
Source: “What to Watch Out for When Buying a Foreclosure: Help Your Clients Know Which to Buy ... and Which to Walk By,” RISMedia (April 7, 2011)
© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
Related Topics: Foreclosures, Real estate investing
Dan Steward, president of Pillar to Post Professional Home Inspections, advises buyers considering a foreclosure to avoid the following top mistakes:
1. Don’t judge a house by looks alone. A $2 million mansion may look fabulous but have mold hiding beneath the walls or need numerous, costly repairs. A fixer upper, on the other hand, may look rundown but have excellent bones and be repaired at a reasonable cost. A home inspection prior to purchasing a property can help buyers determine if they might be getting in over their head, Steward says. He cautions buyers to not just rely on previous inspections, however, since vacant homes can deteriorate rapidly.
2. Don’t focus on price alone. Buyers may focus on the ultra-low price so much that they forget to factor in other qualities, such as the home’s school district, view, location and local crime rate. Steward cautions buyers not to assume that a previous owner’s financial problems cause all foreclosures.
3. Don’t be tempted to “flip.” Purchasing a home at bargain price, updating it and trying to sell it for a lot more may seem tempting, but Steward warns buyers to be cautious. Unless the buyers are pros at house flipping, they’ll likely run into several novice mistakes in trying to make fast money on flipping a foreclosure. Steward recommends buyers consult a real estate professional, home inspector and contractors before considering a flip.
4. Don’t go over budget. Foreclosures often require some fixes so buyers need to make sure they have the money to afford needed repairs. Steward recommends that buyers have at least half of the money in cash for needed repairs. He says that buyers will want to avoid taking more loans than needed, particularly private loans, because the interest on them will slowly chip away at their initial foreclosure bargain.
Source: “What to Watch Out for When Buying a Foreclosure: Help Your Clients Know Which to Buy ... and Which to Walk By,” RISMedia (April 7, 2011)
© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
Related Topics: Foreclosures, Real estate investing
Wednesday, April 6, 2011
Foreclosure money to help 40,000 Floridians
TALLAHASSEE, Fla. – April 6, 2011 – About 40,000 struggling Florida homeowners may soon get federal help making mortgage payments in an effort to help stave off foreclosure.
The Florida Housing Finance Corp. announced Tuesday it is expanding the federal Hardest Hit Fund statewide.
The $1 billion fund will help eligible homeowners make mortgage payments for up to 6 months. Homeowners must be unemployed or their housing cost must be 31 percent or more than their income. Delinquent homeowners who are now able to start making payments could also get help getting current on their loans.
First announced on Feb. 19, 2010, by the U.S. Department of the Treasury, the fund provides federal money to states hardest hit by the aftermath of the housing bust. To date, $7.6 billion has been allocated to 18 states and the District of Columbia.
In October, a pilot Florida program began in Lee County. The expanded statewide program will begin accepting website applications at 9 a.m. April 18.
Cecka Rose Green, spokeswoman for the housing group, said she recommends homeowners act quickly.
“A billion dollars sounds like a lot of money,” she said. “But there are hundreds of thousands of people who probably need help. The money will run out.”
Participants must be owners of single-family homes who are no more than 180 days delinquent on their mortgage payments.
The program will be slightly different than the pilot program in Lee County. Homeowners will now have to contribute at least $70 per month or 25 percent of their monthly income. The pilot program paid 100 percent of homeowners’ mortgage payments. And the assistance will only last up to six months now, down from 18 months.
Previously, homeowners were eligible for up to $35,000. The assistance amount is much lower now, though.
There will be two programs, one for the unemployed and one to help homeowners who’ve found work get caught up on payments.
The Unemployment Mortgage Assistance Program will provide up to $12,000 to pay monthly mortgage and escrowed mortgage-related expenses for up to 6 months, or until the homeowner can resume making mortgage payments.
The Mortgage Loan Reinstatement Payment Program will provide up to $6,000 to bring the homeowner’s mortgage current, if the homeowner is able to make mortgage payments.
Homeowners can apply for assistance through the Florida Finance Corporation website.
Copyright © 2011 Tampa Tribune, Fla. Shannon Behnken. Distributed by McClatchy-Tribune Information Services.
The Florida Housing Finance Corp. announced Tuesday it is expanding the federal Hardest Hit Fund statewide.
The $1 billion fund will help eligible homeowners make mortgage payments for up to 6 months. Homeowners must be unemployed or their housing cost must be 31 percent or more than their income. Delinquent homeowners who are now able to start making payments could also get help getting current on their loans.
First announced on Feb. 19, 2010, by the U.S. Department of the Treasury, the fund provides federal money to states hardest hit by the aftermath of the housing bust. To date, $7.6 billion has been allocated to 18 states and the District of Columbia.
In October, a pilot Florida program began in Lee County. The expanded statewide program will begin accepting website applications at 9 a.m. April 18.
Cecka Rose Green, spokeswoman for the housing group, said she recommends homeowners act quickly.
“A billion dollars sounds like a lot of money,” she said. “But there are hundreds of thousands of people who probably need help. The money will run out.”
Participants must be owners of single-family homes who are no more than 180 days delinquent on their mortgage payments.
The program will be slightly different than the pilot program in Lee County. Homeowners will now have to contribute at least $70 per month or 25 percent of their monthly income. The pilot program paid 100 percent of homeowners’ mortgage payments. And the assistance will only last up to six months now, down from 18 months.
Previously, homeowners were eligible for up to $35,000. The assistance amount is much lower now, though.
There will be two programs, one for the unemployed and one to help homeowners who’ve found work get caught up on payments.
The Unemployment Mortgage Assistance Program will provide up to $12,000 to pay monthly mortgage and escrowed mortgage-related expenses for up to 6 months, or until the homeowner can resume making mortgage payments.
The Mortgage Loan Reinstatement Payment Program will provide up to $6,000 to bring the homeowner’s mortgage current, if the homeowner is able to make mortgage payments.
Homeowners can apply for assistance through the Florida Finance Corporation website.
Copyright © 2011 Tampa Tribune, Fla. Shannon Behnken. Distributed by McClatchy-Tribune Information Services.
Tuesday, April 5, 2011
Help a Property Appeal to More Buyers
Daily Real Estate News | April 5, 2011 | Share
Help a Property Appeal to More Buyers
When real estate agent Kathryn Madison listed a vintage home that looks like a traditional ranch house on the outside but meets all the criteria of Midcentury Modern on the inside, she knew some buyers would be put off by the fact that many of the fixtures were the originals from when the home was built in 1948.
She says there is a museum quality to the home; and while some buyers are able to appreciate it, they also cannot bring themselves to remodel it. However, Madison wanted to cater to all three buyer types -- those who would love the home as is, those who would be respectful to the era in their improvements, and those who would alter the home to meet their needs.
She took hundreds of photos of the home and posted them online, many of the photos of the property without furnishings for a virtual staging tool that would enable buyers to see how more contemporary features could spruce up the home.
Such a move helped Madison sell it within a matter of months.
Help a Property Appeal to More Buyers
When real estate agent Kathryn Madison listed a vintage home that looks like a traditional ranch house on the outside but meets all the criteria of Midcentury Modern on the inside, she knew some buyers would be put off by the fact that many of the fixtures were the originals from when the home was built in 1948.
She says there is a museum quality to the home; and while some buyers are able to appreciate it, they also cannot bring themselves to remodel it. However, Madison wanted to cater to all three buyer types -- those who would love the home as is, those who would be respectful to the era in their improvements, and those who would alter the home to meet their needs.
She took hundreds of photos of the home and posted them online, many of the photos of the property without furnishings for a virtual staging tool that would enable buyers to see how more contemporary features could spruce up the home.
Such a move helped Madison sell it within a matter of months.
Monday, April 4, 2011
22% Have Trouble Paying off their Mortgage
22% have difficulty paying off mortgage
NEW YORK – April 4, 2011 – A new Harris Poll finds that 22 percent of people with mortgages are having difficulty meeting their mortgage payments, including 7 percent who have “a great deal of difficulty.” Furthermore, 21 percent of those with mortgages think their homes are “underwater” – worth less than the amounts that they owe.
However the numbers are somewhat lower than a year ago. The percent of people who have difficulty paying off their mortgage has declined from 29 percent to 22 percent, and the percent having a great deal of difficulty is down from 11 percent to 7 percent. At this time in 2010, 24 percent of those with mortgages thought they were underwater – three points higher than today.
The Harris Poll interviewed 3,171 adults online between March 7 and 14, 2011.
Some main findings include:
• Two thirds (66 percent) of all adults have mortgages on their homes, slightly lower than last year’s 69 percent.
• While most homeowners with mortgages (73 percent) have little or no difficulty making their mortgage payments, the 22 percent who have difficulty represent about 32 million people. The 7 percent having a great deal of difficulty represents more than 11 million people.
• Those who believe their homes are worth less than the money they owe on their mortgages (21 percent of all those with mortgages) includes 8 percent who say their homes are worth “a lot less.” However these numbers are also somewhat lower than they were a year ago (24 percent and 11 percent).
• Most adults (62 percent), whether or not they are homeowners with mortgages, are at least somewhat concerned that their family’s income will not be enough to cover all their costs and expenses this year. This number is also slightly lower than it was last year (65 percent). Unsurprisingly, the higher the family income, the lower the level of concern. But among the lowest group with household incomes of less than $35,000, fully 75 percent are concerned and 36 percent are very concerned.
The findings are consistent with other Harris Poll economic data that show a very modest, but still painfully slow, recovery from the recession. Harris also notes that one reason numbers may have dropped is that some people in difficulty last year have since lost their homes and no longer have mortgages.
© 2011 Florida Realtors®
Related Topics: Economy, Research
NEW YORK – April 4, 2011 – A new Harris Poll finds that 22 percent of people with mortgages are having difficulty meeting their mortgage payments, including 7 percent who have “a great deal of difficulty.” Furthermore, 21 percent of those with mortgages think their homes are “underwater” – worth less than the amounts that they owe.
However the numbers are somewhat lower than a year ago. The percent of people who have difficulty paying off their mortgage has declined from 29 percent to 22 percent, and the percent having a great deal of difficulty is down from 11 percent to 7 percent. At this time in 2010, 24 percent of those with mortgages thought they were underwater – three points higher than today.
The Harris Poll interviewed 3,171 adults online between March 7 and 14, 2011.
Some main findings include:
• Two thirds (66 percent) of all adults have mortgages on their homes, slightly lower than last year’s 69 percent.
• While most homeowners with mortgages (73 percent) have little or no difficulty making their mortgage payments, the 22 percent who have difficulty represent about 32 million people. The 7 percent having a great deal of difficulty represents more than 11 million people.
• Those who believe their homes are worth less than the money they owe on their mortgages (21 percent of all those with mortgages) includes 8 percent who say their homes are worth “a lot less.” However these numbers are also somewhat lower than they were a year ago (24 percent and 11 percent).
• Most adults (62 percent), whether or not they are homeowners with mortgages, are at least somewhat concerned that their family’s income will not be enough to cover all their costs and expenses this year. This number is also slightly lower than it was last year (65 percent). Unsurprisingly, the higher the family income, the lower the level of concern. But among the lowest group with household incomes of less than $35,000, fully 75 percent are concerned and 36 percent are very concerned.
The findings are consistent with other Harris Poll economic data that show a very modest, but still painfully slow, recovery from the recession. Harris also notes that one reason numbers may have dropped is that some people in difficulty last year have since lost their homes and no longer have mortgages.
© 2011 Florida Realtors®
Related Topics: Economy, Research
Wednesday, March 30, 2011
National Associations of Realtors Opposes High Down Payment Requirement
High down payment requirements being proposed by federal regulatory agencies as part of the upcoming rule-making under the Dodd-Frank Wall Street Reform and Consumer Protection Act will unnecessarily burden home buyers and significantly impede the economic and housing recovery, according to the National Association of REALTORS®.
Six agencies (including the Department of Housing and Urban Development, Federal Deposit Insurance Corp., Federal Housing Finance Agency, Federal Reserve, Office of the Comptroller of the Currency, and the U.S. Securities and Exchange Commission) are developing a proposed risk retention regulation under the Dodd-Frank Act that requires lenders that securitize mortgage loans to retain 5 percent of the credit risk unless the mortgage is a qualified residential mortgage (QRM); FHA and VA mortgages would also be exempted. The purpose is to create strong incentives for responsible lending and borrowing.
“As the leading advocate for home ownership, NAR supports a reasonable and affordable cash investment requirement coupled with quality credit standards, strong documentation and sound underwriting,” said NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I. “A narrow definition of QRM, with an unnecessarily high down payment requirement, will increase the cost and reduce the availability of mortgage credit, significantly delaying a housing recovery.”
NAR believes that Congress intended to create a broad QRM exemption from the 5 percent risk retention requirement to include a wide variety of traditionally safe, well-underwritten products. Congress chose not to include a high down payment among the criteria it specified in the Dodd-Frank Act to guide the regulators in defining a QRM. Strong evidence shows that responsible lending standards and ensuring a borrower’s ability to repay have the greatest impact on reducing lender risk.
“We need to strike a balance between reducing investor risk and providing affordable mortgage credit. Better underwriting and credit quality standards have greatly reduced risk. Adding unnecessarily high minimum down payment requirements will only exclude hundreds of thousands of buyers from home ownership, despite their creditworthiness and proven ability to afford the monthly payment, because of the dramatic increase in the wealth required to purchase a home,” said Phipps.
The definition of QRM is important because it will determine the types of mortgages that will generally be available to borrowers in the future. Borrowers with less than 20 percent down could be forced to pay higher fees and interest rates, up to 3 percentage points more, for safe loans that otherwise do not meet too narrow QRM criteria.
NAR is concerned that a narrowly defined QRM will also require severe tightening of FHA eligibility requirements and higher FHA premiums to prevent huge increases in its already robust share of the market, adding additional roadblocks to sustainable home ownership.
“Saving the necessary down payment has always been the principal obstacle to buyers seeking to purchase their first home. Proposals requiring high down payments will only drive more borrowers to FHA, increase costs for borrowers by raising interest rates and fees, and effectively price many eligible borrowers out of the housing market,” said Phipps. “We strongly urge the regulators to consider the negative consequences of setting onerous limits on the availability of credit.”
Six agencies (including the Department of Housing and Urban Development, Federal Deposit Insurance Corp., Federal Housing Finance Agency, Federal Reserve, Office of the Comptroller of the Currency, and the U.S. Securities and Exchange Commission) are developing a proposed risk retention regulation under the Dodd-Frank Act that requires lenders that securitize mortgage loans to retain 5 percent of the credit risk unless the mortgage is a qualified residential mortgage (QRM); FHA and VA mortgages would also be exempted. The purpose is to create strong incentives for responsible lending and borrowing.
“As the leading advocate for home ownership, NAR supports a reasonable and affordable cash investment requirement coupled with quality credit standards, strong documentation and sound underwriting,” said NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I. “A narrow definition of QRM, with an unnecessarily high down payment requirement, will increase the cost and reduce the availability of mortgage credit, significantly delaying a housing recovery.”
NAR believes that Congress intended to create a broad QRM exemption from the 5 percent risk retention requirement to include a wide variety of traditionally safe, well-underwritten products. Congress chose not to include a high down payment among the criteria it specified in the Dodd-Frank Act to guide the regulators in defining a QRM. Strong evidence shows that responsible lending standards and ensuring a borrower’s ability to repay have the greatest impact on reducing lender risk.
“We need to strike a balance between reducing investor risk and providing affordable mortgage credit. Better underwriting and credit quality standards have greatly reduced risk. Adding unnecessarily high minimum down payment requirements will only exclude hundreds of thousands of buyers from home ownership, despite their creditworthiness and proven ability to afford the monthly payment, because of the dramatic increase in the wealth required to purchase a home,” said Phipps.
The definition of QRM is important because it will determine the types of mortgages that will generally be available to borrowers in the future. Borrowers with less than 20 percent down could be forced to pay higher fees and interest rates, up to 3 percentage points more, for safe loans that otherwise do not meet too narrow QRM criteria.
NAR is concerned that a narrowly defined QRM will also require severe tightening of FHA eligibility requirements and higher FHA premiums to prevent huge increases in its already robust share of the market, adding additional roadblocks to sustainable home ownership.
“Saving the necessary down payment has always been the principal obstacle to buyers seeking to purchase their first home. Proposals requiring high down payments will only drive more borrowers to FHA, increase costs for borrowers by raising interest rates and fees, and effectively price many eligible borrowers out of the housing market,” said Phipps. “We strongly urge the regulators to consider the negative consequences of setting onerous limits on the availability of credit.”
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