iPhone 5 Part Shows Larger Screen, Thinner Bezel?
Saturday February 26, 2011 12:49 AM
The front bezel of what is claimed to be an "iPhone 5" part has reportedly been posted to by iDealsChina. The image was first discovered by 9to5Mac. iDealsChina writes:
China's 1st iPhone 5 photo has surfaced! From this photo it seems that the screen size will be larger than iPhone 4. There has been a lot of specualtion about a larger screen and maybe this will be one of the upgrades we will see when iPhone 5 is released this summer.
The screen could match up with claims that the iPhone 5 will have a larger 4 inch screen as well as a "edge to edge" screen which we mean to interpret as a smaller bezel (border). It's hard to tell for sure without a comparison with the current iPhone 4 next to it.
iDealsChina was one of the sources of the early (2008) iPhone Nano rumors based on some early cases from accessory makers. They had previously posted moldings for the then-unreleased iPhone 3G cases which turned out to be accurate. The iPhone 5 is rumored to be launching this summer.
Saturday, February 26, 2011
Friday, February 25, 2011
Buyers Score Big Bargains on Foreclosed Homes
Home owners are snagging big discounts on bank-owned properties, as the gap last year between the average sales price of foreclosed homes and other properties continued to widen, RealtyTrac Inc. reports.
Buyers who purchased a foreclosed home last year received a 28 percent discount, on average, compared to a non-foreclosure sale, according to RealtyTrac.
Foreclosed homes comprised nearly 26 percent of all home sales last year, which is down from 29 percent in 2009. Foreclosure sales dropped sharply the last three months of 2010.
Yet, Rick Sharga, senior vice president at RealtyTrac, says only about 30 percent of banks’ foreclosure inventory is currently on the market.
Nevada, Arizona, and California reported the highest percentages of foreclosure sales for 2010. In Nevada alone, foreclosure sales accounted for nearly 57 percent of all home sales, according to RealtyTrac.
Source: “Report: Gap in Average Sales Price Widened Between Foreclosures, Regular Homes in 2010,” The Associated Press (Feb. 24, 2011)
Buyers who purchased a foreclosed home last year received a 28 percent discount, on average, compared to a non-foreclosure sale, according to RealtyTrac.
Foreclosed homes comprised nearly 26 percent of all home sales last year, which is down from 29 percent in 2009. Foreclosure sales dropped sharply the last three months of 2010.
Yet, Rick Sharga, senior vice president at RealtyTrac, says only about 30 percent of banks’ foreclosure inventory is currently on the market.
Nevada, Arizona, and California reported the highest percentages of foreclosure sales for 2010. In Nevada alone, foreclosure sales accounted for nearly 57 percent of all home sales, according to RealtyTrac.
Source: “Report: Gap in Average Sales Price Widened Between Foreclosures, Regular Homes in 2010,” The Associated Press (Feb. 24, 2011)
Thursday, February 24, 2011
Survey: Sellers Fare Better With Agents
Sellers have a better chance at getting their house sold by using a REALTOR® than opting for the do-it-yourself approach, according to a survey of 1,000 home owners by HomeGain.com, an online real estate resource. Nearly 60 percent of home owners who used a REALTOR® to sell their home were successful compared to 39 percent of FSBOs, the survey found.
In the survey, 83 percent of home owners said they used a REALTOR® to sell their home, whereas 17 percent said they tried to sell it themselves. This corresponds to results from NAR's 2010 Profile of Buyers & Sellers, which found 88 percent of sellers were assisted by a real estate agent. (Additionally, 83 percent of buyers bought their home through an agent.)
“It is especially striking that home owners fare significantly better in selling their homes using a REALTOR® than selling on their own,” says Louis Cammarosano, general manager at HomeGain. “Due to that relative success, the level of satisfaction in the home selling process is also higher for home sellers utilizing the services of a REALTOR® than those who try to sell their homes on their own.”
Among the findings in its For Sale by Owner vs. REALTOR® survey:
Source: “HomeGain Survey Finds Home Sellers Fare 50% Better in Getting Their Homes Sold Using a REALTOR® Than Selling on Their Own,” HomeGain.com (Feb. 24, 2011)
In the survey, 83 percent of home owners said they used a REALTOR® to sell their home, whereas 17 percent said they tried to sell it themselves. This corresponds to results from NAR's 2010 Profile of Buyers & Sellers, which found 88 percent of sellers were assisted by a real estate agent. (Additionally, 83 percent of buyers bought their home through an agent.)
“It is especially striking that home owners fare significantly better in selling their homes using a REALTOR® than selling on their own,” says Louis Cammarosano, general manager at HomeGain. “Due to that relative success, the level of satisfaction in the home selling process is also higher for home sellers utilizing the services of a REALTOR® than those who try to sell their homes on their own.”
Among the findings in its For Sale by Owner vs. REALTOR® survey:
- 88 percent of home owners who sold their homes using a REALTOR® said they would use a REALTOR® again.
- 24 percent of FSBOs eventually contacted a REALTOR® to help sell their home.
Source: “HomeGain Survey Finds Home Sellers Fare 50% Better in Getting Their Homes Sold Using a REALTOR® Than Selling on Their Own,” HomeGain.com (Feb. 24, 2011)
Wednesday, February 23, 2011
Is Luxury Making a Comback?
PALM BEACH, Fla. – Feb. 24, 2011 – Uber-rich Americans are spending again, on everything from fancy cars to second homes.
“Personal embracement of luxury is now back to (pre-recession) 2007 levels,” marketing specialist Jim Taylor, author of “Selling to the New Elite,” told USA Today. “We’re seeing that in cars, private jet usage and finally, in high-end real estate. There’s a real change in the way people feel about money. They’re making purchases they put off during the recession.”
For example, second-home markets are on the rise: Vacation homes in Cape Cod, Mass., for example, increased 9 percent in 2010. In Palm Beach, Fla., home sales increased nearly 40 percent, and in Hilton Head, S.C., home sales were up nearly 14 percent. Luxury home sales in Southern California are also beginning to pick up, analysts say.
“We’re starting to see movement,” says Madison Hildebrand, a real estate professional who specializes in selling homes in Southern California, and also star of the Bravo’s “Million Dollar Listing” reality show. “People are more confident.”
Analysts also note that when the wealthy start buying, it often has a trickle down effect among middle and upper-income shoppers too.
Source: “For the wealthy, luxury is back,” USA Today (Feb. 20, 2011)
© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
“Personal embracement of luxury is now back to (pre-recession) 2007 levels,” marketing specialist Jim Taylor, author of “Selling to the New Elite,” told USA Today. “We’re seeing that in cars, private jet usage and finally, in high-end real estate. There’s a real change in the way people feel about money. They’re making purchases they put off during the recession.”
For example, second-home markets are on the rise: Vacation homes in Cape Cod, Mass., for example, increased 9 percent in 2010. In Palm Beach, Fla., home sales increased nearly 40 percent, and in Hilton Head, S.C., home sales were up nearly 14 percent. Luxury home sales in Southern California are also beginning to pick up, analysts say.
“We’re starting to see movement,” says Madison Hildebrand, a real estate professional who specializes in selling homes in Southern California, and also star of the Bravo’s “Million Dollar Listing” reality show. “People are more confident.”
Analysts also note that when the wealthy start buying, it often has a trickle down effect among middle and upper-income shoppers too.
Source: “For the wealthy, luxury is back,” USA Today (Feb. 20, 2011)
© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
Tuesday, February 22, 2011
Foreclosure Process Gets Longer
Banks and mortgage servicers are taking more time to foreclose on defaulting home owners--a process that can take up to 2 years now, USA Today reports.
A backlog in foreclosures has occurred within a number of the nation’s banks, triggered by the large number of home owners defaulting on loans, a lengthy review process for loan modifications, and recent lawsuits that have accused banks of improperly filing foreclosure documents .
Meanwhile, defaulting home owners are being allowed to stay in their homes longer. In December 2010, the average borrower in foreclosure went 507 days without making a mortgage payment, according to LPS Applied Analytics. (Prior to the housing crash, the norm was considered 250 days in default.)
Diane Pendley, managing director of Fitch Ratings, estimates that delinquent borrowers stay in their homes an average of 19 to 20 months before they're evicted. She expects that average to grow to 22 to 23 months by the end of the year--the longest on record.
The delays in the foreclosure process are expected to lead to less inventory of foreclosed homes for sale and higher prices for these homes, in some markets, experts note. However, the longer wait also means foreclosures could weigh on the real estate market much longer, they say.
Source: “Home Loans in Default Drag On,” USA Today (Feb. 21, 2011)
A backlog in foreclosures has occurred within a number of the nation’s banks, triggered by the large number of home owners defaulting on loans, a lengthy review process for loan modifications, and recent lawsuits that have accused banks of improperly filing foreclosure documents .
Meanwhile, defaulting home owners are being allowed to stay in their homes longer. In December 2010, the average borrower in foreclosure went 507 days without making a mortgage payment, according to LPS Applied Analytics. (Prior to the housing crash, the norm was considered 250 days in default.)
Diane Pendley, managing director of Fitch Ratings, estimates that delinquent borrowers stay in their homes an average of 19 to 20 months before they're evicted. She expects that average to grow to 22 to 23 months by the end of the year--the longest on record.
The delays in the foreclosure process are expected to lead to less inventory of foreclosed homes for sale and higher prices for these homes, in some markets, experts note. However, the longer wait also means foreclosures could weigh on the real estate market much longer, they say.
Source: “Home Loans in Default Drag On,” USA Today (Feb. 21, 2011)
Monday, February 21, 2011
Home loans in default drag on
WASHINGTON – Feb. 21, 2011 – The average U.S. borrower in the throes of foreclosure hasn’t made a mortgage payment in 17 months, up from nearly 11 months two years ago – and the timeframe may get even longer.
Banks and mortgage servicers, who collect payments for lenders, are taking more time to complete foreclosures because of huge volumes of defaulted mortgages. Other factors include time-consuming reviews for loan modifications and additional delays that followed revelations late last year about improperly filed foreclosure documents in tens of thousands of cases.
Last year, the number of days that the average borrower in foreclosure went without making a payment stretched from 410 in January to 507 in December, says LPS Applied Analytics, which tracks 37 million mortgages. Before the foreclosure crisis, the norm was more like 250 days, says Herb Blecher, LPS senior vice president.
“Loans are spending longer in the process,” Blecher says.
About 2.2 million homes were in foreclosure at the end of January, according to LPS.
The delays may translate into higher prices in some markets for foreclosed homes as inventories shrink, real estate experts say. They will also push some foreclosures further into the future, meaning they’ll weigh on housing markets longer. “There’s a trade-off. On the plus side, you trim inventories. But ultimately, these units have to be foreclosed,” Christopher Thornberg of Beacon Economics says.
Some companies have assigned more workers to handle distressed loans in recent months, but they’re still not likely to have enough to quickly process foreclosures, Thornberg says.
Government initiatives that were begun in 2009 to increase loan modifications also slowed lenders’ efforts to modify loans, says Diane Pendley, managing director of Fitch Ratings.
The government programs were “very complex and kept changing,” which added to the work required to do a modification and increased the time that seriously delinquent borrowers could live payment-free before losing their home, she says.
Pendley estimates that delinquent borrowers now stay in their homes an average of 19 to 20 months without paying before they’re forced to leave. By year end, the average will rise to 22 to 23 months, the longest on record, she says.
Postponing foreclosure helps borrowers financially, but “everyone else is being hurt,” Pendley says. They include owners of mortgage loans, taxpayers who cover losses for government-backed mortgage companies and local governments that are owed property taxes, which often aren’t being paid, either.
Companies are also slowing foreclosures so that they don’t glut the market with homes for sale, which would depress prices, says Patrick Butler, head of asset disposition for Foreclosure.com.
© Copyright 2011 USA TODAY, a division of Gannett Co. Inc., Julie Schmit.
Related Topics: Foreclosures
WASHINGTON – Feb. 21, 2011 – The average U.S. borrower in the throes of foreclosure hasn’t made a mortgage payment in 17 months, up from nearly 11 months two years ago – and the timeframe may get even longer.
Banks and mortgage servicers, who collect payments for lenders, are taking more time to complete foreclosures because of huge volumes of defaulted mortgages. Other factors include time-consuming reviews for loan modifications and additional delays that followed revelations late last year about improperly filed foreclosure documents in tens of thousands of cases.
Last year, the number of days that the average borrower in foreclosure went without making a payment stretched from 410 in January to 507 in December, says LPS Applied Analytics, which tracks 37 million mortgages. Before the foreclosure crisis, the norm was more like 250 days, says Herb Blecher, LPS senior vice president.
“Loans are spending longer in the process,” Blecher says.
About 2.2 million homes were in foreclosure at the end of January, according to LPS.
The delays may translate into higher prices in some markets for foreclosed homes as inventories shrink, real estate experts say. They will also push some foreclosures further into the future, meaning they’ll weigh on housing markets longer. “There’s a trade-off. On the plus side, you trim inventories. But ultimately, these units have to be foreclosed,” Christopher Thornberg of Beacon Economics says.
Some companies have assigned more workers to handle distressed loans in recent months, but they’re still not likely to have enough to quickly process foreclosures, Thornberg says.
Government initiatives that were begun in 2009 to increase loan modifications also slowed lenders’ efforts to modify loans, says Diane Pendley, managing director of Fitch Ratings.
The government programs were “very complex and kept changing,” which added to the work required to do a modification and increased the time that seriously delinquent borrowers could live payment-free before losing their home, she says.
Pendley estimates that delinquent borrowers now stay in their homes an average of 19 to 20 months without paying before they’re forced to leave. By year end, the average will rise to 22 to 23 months, the longest on record, she says.
Postponing foreclosure helps borrowers financially, but “everyone else is being hurt,” Pendley says. They include owners of mortgage loans, taxpayers who cover losses for government-backed mortgage companies and local governments that are owed property taxes, which often aren’t being paid, either.
Companies are also slowing foreclosures so that they don’t glut the market with homes for sale, which would depress prices, says Patrick Butler, head of asset disposition for Foreclosure.com.
© Copyright 2011 USA TODAY, a division of Gannett Co. Inc., Julie Schmit.
Related Topics: Foreclosures
Friday, February 18, 2011
Boomers expected to change housing priorities
ORLANDO, Fla. – Feb. 18, 2011 – Developers and builders expect baby boomers to re-emerge in the real estate market soon, but they say boomers likely will come with a simpler agenda when it comes to what they’re looking for in a home.
“We have an opportunity to rethink a lot of the things we’ve done” in designing communities and homes that are intended for that age group, says Douglas Van Lerberghe, a land planner in Denver, who spoke during the National Association of Home Builders conference in Orlando, Fla., last month.
Housing experts predict retiring boomers will want a greater variety of housing styles, smaller homes, and developments that are restricted to older buyers.
Other high priorities they expect from this age group:
• Younger boomers will want to continue to work so homes close to job hubs will be important, and more houses will include a home office in the floor plan.
• The group ranks walking trails as its No. 1 amenity.
• Also ranked as important: gated access to communities and security.
• Boomers also want expanded storage in their garages.
Source: “Boomers set to reshape housing market, again,” Chicago Tribune (Feb. 13, 2011)
“We have an opportunity to rethink a lot of the things we’ve done” in designing communities and homes that are intended for that age group, says Douglas Van Lerberghe, a land planner in Denver, who spoke during the National Association of Home Builders conference in Orlando, Fla., last month.
Housing experts predict retiring boomers will want a greater variety of housing styles, smaller homes, and developments that are restricted to older buyers.
Other high priorities they expect from this age group:
• Younger boomers will want to continue to work so homes close to job hubs will be important, and more houses will include a home office in the floor plan.
• The group ranks walking trails as its No. 1 amenity.
• Also ranked as important: gated access to communities and security.
• Boomers also want expanded storage in their garages.
Source: “Boomers set to reshape housing market, again,” Chicago Tribune (Feb. 13, 2011)
Wednesday, February 16, 2011
Apartments push home construction up in January
WASHINGTON (AP) – Feb. 16, 2011 – Home construction in the U.S. rose at the fastest rate in 20 months, pushed up by a spike in apartment building. But construction of single-family homes declined, a sign that demand for housing remains weak.
Builders broke ground on new homes and apartments at a seasonally adjusted annual rate of 596,000 units, a 14.6 percent jump from December.
Single-family homes, which make up nearly 70 percent of new construction, fell 1 percent to an annual rate of 417,000 units. Apartment construction skyrocketed 80 percent to an annual rate of 171,000 units.
Building permits, an indicator of future construction, fell more than 10 percent in January. Code changes in California, Pennsylvania and New York caused an artificial spike the month before.
Last year, builders worked on 587,600 new homes, just barely better than the 554,000 started in 2009. In a healthy economy, builders start about 1 million units a year. The housing industry is coming off the worst two years for home construction dating back to 1959.
More than a year after the recession ended, the housing market is still struggling.
Millions of foreclosures have forced home prices down and more are expected this year. Tight credit has made mortgage loans tough to come by. And some potential buyers who could qualify for loans are hesitant to enter the market, worried that prices will fall further.
The flat-lined housing market is weighing on the overall economic recovery. Each new home built creates, on average, the equivalent of three jobs for a year and generates about $90,000 in taxes, according to the National Association of Home Builders.
Single-family home construction was uneven across the country, falling 12.8 percent in the Northeast and 7.7 percent in the South. It jumped 5.4 percent in the West and 25.5 percent in the Midwest.
The trade association reported Tuesday that its index of builder confidence remained stuck at 16 in February, where it has been for four straight months. A reading of 50 signifies a positive outlook about the future.
Copyright 201
Builders broke ground on new homes and apartments at a seasonally adjusted annual rate of 596,000 units, a 14.6 percent jump from December.
Single-family homes, which make up nearly 70 percent of new construction, fell 1 percent to an annual rate of 417,000 units. Apartment construction skyrocketed 80 percent to an annual rate of 171,000 units.
Building permits, an indicator of future construction, fell more than 10 percent in January. Code changes in California, Pennsylvania and New York caused an artificial spike the month before.
Last year, builders worked on 587,600 new homes, just barely better than the 554,000 started in 2009. In a healthy economy, builders start about 1 million units a year. The housing industry is coming off the worst two years for home construction dating back to 1959.
More than a year after the recession ended, the housing market is still struggling.
Millions of foreclosures have forced home prices down and more are expected this year. Tight credit has made mortgage loans tough to come by. And some potential buyers who could qualify for loans are hesitant to enter the market, worried that prices will fall further.
The flat-lined housing market is weighing on the overall economic recovery. Each new home built creates, on average, the equivalent of three jobs for a year and generates about $90,000 in taxes, according to the National Association of Home Builders.
Single-family home construction was uneven across the country, falling 12.8 percent in the Northeast and 7.7 percent in the South. It jumped 5.4 percent in the West and 25.5 percent in the Midwest.
The trade association reported Tuesday that its index of builder confidence remained stuck at 16 in February, where it has been for four straight months. A reading of 50 signifies a positive outlook about the future.
Copyright 201Tuesday, February 15, 2011
FHA-insured loans to cost more
WASHINGTON – Feb. 15, 2011 – Effective April 18, the monthly mortgage insurance premium paid on FHA mortgages will go up about $30 per month for an average borrower, federal officials said yesterday. The upfront mortgage insurance premium paid at closing, however, will remain at 1 percent of the mortgage amount.
The U.S. Department of Housing and Urban Development (HUD) that oversees FHA says it has two reasons for the increase. First, FHA’s capital reserves are currently below a mandated minimum set by the legislature, and the fee increase will help the agency comply with the law. Second, HUD hopes to steer more buyers away from FHA loans and into the private sector by making an FHA loan less desirable.
To create the increase, HUD will boost the monthly mortgage insurance premium by 25 basis points – to 115 basis points – on FHA-backed single-family loans with loan-to-value ratios above 95 percent.
While the change is part of President Obama’s proposed budget, HUD does not need legislative approval to make the change, according to HUD Secretary Shaun Donovan.
© 2011 Florida Realtors®
Related Topics: Mortgages
The U.S. Department of Housing and Urban Development (HUD) that oversees FHA says it has two reasons for the increase. First, FHA’s capital reserves are currently below a mandated minimum set by the legislature, and the fee increase will help the agency comply with the law. Second, HUD hopes to steer more buyers away from FHA loans and into the private sector by making an FHA loan less desirable.
To create the increase, HUD will boost the monthly mortgage insurance premium by 25 basis points – to 115 basis points – on FHA-backed single-family loans with loan-to-value ratios above 95 percent.
While the change is part of President Obama’s proposed budget, HUD does not need legislative approval to make the change, according to HUD Secretary Shaun Donovan.
© 2011 Florida Realtors®
Related Topics: Mortgages
Monday, February 14, 2011
Era of super-low mortgage rates over?
NEW YORK – Feb. 14, 2011 – The days of the absurdly low mortgage rate are over.
The average rate for a 30-year home loan rose above 5 percent last week for the first time since last April – just as Americans are feeling more secure in their jobs and confident about the economy, and just before the big spring homebuying rush.
Freddie Mac said Thursday that the average rate was 5.05 percent, almost a full percentage point higher than in November, when it hit a 40-year low.
Economic signals suggest the recovery is gaining momentum. New claims for jobless benefits came in this week at the lowest in three years, and the unemployment rate has fallen nearly a full percentage point in two months. Americans are spending more and saving less.
The exception is the beleaguered housing market. Record foreclosures have forced home prices down, and last year was the worst for sales in more than a decade. About the only good news was that qualified buyers could get the deal of a lifetime from their lenders, if they had the means – and the stomach – for the market.
Now rates are rising, and analysts expect that will continue through the end of the year, to about 5.5 percent. The next few months are the busiest for the housing market – about one in three home sales happens in the spring.
“It doesn’t help,” says Greg McBride, a senior financial analyst with Bankrate.com. “Any increase in mortgage rates takes away buying power and dilutes the incentive to refinance.”
Rates have been rising since the fall, mostly because of fears that higher inflation is coming. Investors have been demanding higher yields on Treasury bonds ever since the Federal Reserve announced its program to pump up the economy by spending $600 billion to buy government debt. Mortgage rates tend to track the yield on the 10-year Treasury note.
Mortgage rates are still extremely low by historical standards. Anyone who bought a house 30 years ago might remember paying 18 percent on their loan.
And many analysts say low lending rates are less likely to persuade people to buy than, say, reasonable home prices or a steady job market.
“You’ll see some effect on demand, but it’s really how secure people are in their jobs and how much money they feel they have relative to their homes,” says Cristian deRitis, an economist specializing in housing for Moody’s Analytics.
“Many of those people just won’t buy a house,” says Wells Fargo senior economist Mark Vitner. “They’ll hold off.”
Home prices are expected to fall at least 5 percent more this year. Because of the feeling that the home isn’t the failsafe investment it used to be, renting is more attractive. Especially when some analysts say it could be years before prices return to their pre-recession peak.
That may be contributing to the fact that, despite record inventory levels of affordable homes in nearly half of U.S. cities, mortgage applications continue their downward slide as buyers remain on the sidelines.
“Believe it or not, what I’m seeing, and I’m working with first-time homebuyers, they are not as affected by the interest rate as they are by getting a downpayment,” says Julie Longtin, a real estate agent with RE/MAX Cityside in Providence, R.I. “That’s what is holding them back.”
On a $200,000 loan, the payment difference between today’s rate and November’s is less than $100 a month – hardly enough by itself to spook a buyer.
If rates continue to rise, as many predict they will, the housing market will be in for yet more trouble. “Six percent would do serious damage if it happened in a very short period of time,” said Patrick Newport, U.S. economist at IHS Global Insight.
Even 6 percent would be a bargain for homebuyers historically. Rates were in double digits through most of the 1980s. It wasn’t until 1991 that rates consistently stayed below 10 percent. At the peak of the credit bubble in July 2006, the 30-year fixed mortgage was 6.76 percent.
All this leaves buyers wondering: What is the new normal for interest rates?
“We’re turning to a more normal mortgage rate environment, says Guy Cecala, publisher of the trade magazine Inside Mortgage Finance. “That pretty much means the 30-year in the 6 percent range. I don’t think rates will be going down.”
Copyright © 2011
The average rate for a 30-year home loan rose above 5 percent last week for the first time since last April – just as Americans are feeling more secure in their jobs and confident about the economy, and just before the big spring homebuying rush.
Freddie Mac said Thursday that the average rate was 5.05 percent, almost a full percentage point higher than in November, when it hit a 40-year low.
Economic signals suggest the recovery is gaining momentum. New claims for jobless benefits came in this week at the lowest in three years, and the unemployment rate has fallen nearly a full percentage point in two months. Americans are spending more and saving less.
The exception is the beleaguered housing market. Record foreclosures have forced home prices down, and last year was the worst for sales in more than a decade. About the only good news was that qualified buyers could get the deal of a lifetime from their lenders, if they had the means – and the stomach – for the market.
Now rates are rising, and analysts expect that will continue through the end of the year, to about 5.5 percent. The next few months are the busiest for the housing market – about one in three home sales happens in the spring.
“It doesn’t help,” says Greg McBride, a senior financial analyst with Bankrate.com. “Any increase in mortgage rates takes away buying power and dilutes the incentive to refinance.”
Rates have been rising since the fall, mostly because of fears that higher inflation is coming. Investors have been demanding higher yields on Treasury bonds ever since the Federal Reserve announced its program to pump up the economy by spending $600 billion to buy government debt. Mortgage rates tend to track the yield on the 10-year Treasury note.
Mortgage rates are still extremely low by historical standards. Anyone who bought a house 30 years ago might remember paying 18 percent on their loan.
And many analysts say low lending rates are less likely to persuade people to buy than, say, reasonable home prices or a steady job market.
“You’ll see some effect on demand, but it’s really how secure people are in their jobs and how much money they feel they have relative to their homes,” says Cristian deRitis, an economist specializing in housing for Moody’s Analytics.
“Many of those people just won’t buy a house,” says Wells Fargo senior economist Mark Vitner. “They’ll hold off.”
Home prices are expected to fall at least 5 percent more this year. Because of the feeling that the home isn’t the failsafe investment it used to be, renting is more attractive. Especially when some analysts say it could be years before prices return to their pre-recession peak.
That may be contributing to the fact that, despite record inventory levels of affordable homes in nearly half of U.S. cities, mortgage applications continue their downward slide as buyers remain on the sidelines.
“Believe it or not, what I’m seeing, and I’m working with first-time homebuyers, they are not as affected by the interest rate as they are by getting a downpayment,” says Julie Longtin, a real estate agent with RE/MAX Cityside in Providence, R.I. “That’s what is holding them back.”
On a $200,000 loan, the payment difference between today’s rate and November’s is less than $100 a month – hardly enough by itself to spook a buyer.
If rates continue to rise, as many predict they will, the housing market will be in for yet more trouble. “Six percent would do serious damage if it happened in a very short period of time,” said Patrick Newport, U.S. economist at IHS Global Insight.
Even 6 percent would be a bargain for homebuyers historically. Rates were in double digits through most of the 1980s. It wasn’t until 1991 that rates consistently stayed below 10 percent. At the peak of the credit bubble in July 2006, the 30-year fixed mortgage was 6.76 percent.
All this leaves buyers wondering: What is the new normal for interest rates?
“We’re turning to a more normal mortgage rate environment, says Guy Cecala, publisher of the trade magazine Inside Mortgage Finance. “That pretty much means the 30-year in the 6 percent range. I don’t think rates will be going down.”
Copyright © 2011Saturday, February 12, 2011
Florida Realtors license plate raises $260K
TALLAHASSEE, Fla. – Feb. 11, 2011 – Florida’s “Support Homeownership for All” license plate – a project initiated by Florida Realtors – collected more than $260,000 by Dec. 31, 2010.
The license plate project collected about $260,000 that was used, in part, to help 15 low-income families secure an affordable home. License plate money goes to a separate nonprofit organization, Homeownership for All Inc., within Florida Realtors. The organization’s board of directors manages the funds and supports affordable housing programs.
Local Realtor organizations and affiliated groups that received license plate funds include:
• The Realtor Association of St Lucie Attainable Housing Foundation
• The West Pasco Board of Realtors’ local Habitat for Humanity chapter
• The Realtors Care Foundation of the Greater Tampa Association of Realtors
• Habitat for Humanity Orlando
“Support Homeownership for All” license plates can be ordered through the mail, online or at any county tax collector’s office. The license plate costs an additional $25 beyond the state’s fees for a tag. Tags purchased online include a convenience fee of either $2 or 2.95 percent of the tag’s total cost.
For more information and to view the license plate, visit Florida Realtors website.
© 2011 Florida Realtors®
The license plate project collected about $260,000 that was used, in part, to help 15 low-income families secure an affordable home. License plate money goes to a separate nonprofit organization, Homeownership for All Inc., within Florida Realtors. The organization’s board of directors manages the funds and supports affordable housing programs.
Local Realtor organizations and affiliated groups that received license plate funds include:
• The Realtor Association of St Lucie Attainable Housing Foundation
• The West Pasco Board of Realtors’ local Habitat for Humanity chapter
• The Realtors Care Foundation of the Greater Tampa Association of Realtors
• Habitat for Humanity Orlando
“Support Homeownership for All” license plates can be ordered through the mail, online or at any county tax collector’s office. The license plate costs an additional $25 beyond the state’s fees for a tag. Tags purchased online include a convenience fee of either $2 or 2.95 percent of the tag’s total cost.
For more information and to view the license plate, visit Florida Realtors website.
© 2011 Florida Realtors®
Friday, February 11, 2011
Average rate on 30-year mortgage hits 5.05%
Mortgage Rate Trend Index
A majority (60%) of industry experts polled by Bankrate.com this week expect further mortgage rate increases over the short term. The remaining 40% are divided evenly: 20% expect declines while 20% foresee no change.
Freddie Mac said Thursday that the average rate rose to 5.05 percent from 4.81 percent last week. It hit a 40-year low of 4.17 percent in November. The average rate on the 15-year home loan, a popular refinance option, increased to 4.29 percent from 4.08 percent. It reached 3.57 percent in November, the lowest level on records starting in 1991.
Rates are following the yields on the 10-year Treasury note, which are spiking on fears of higher inflation. Investors have been demanding higher Treasury yields since the Federal Reserve began its $600 billion bond-buying program to boost the economy.
Record high foreclosures, job concerns and expectations that home prices will fall further have sidelined many potential homebuyers. Rising mortgage rates could deter more people from buying, although rates are still extremely low by historical standards.
“It doesn’t help. Any increase in mortgage rates takes away buying power and dilutes the incentive to refinance,” said Greg McBride, a senior financial analyst with Bankrate.com.
The payment difference between today’s rate and the historically low rate in November on a $200,000 loan is less than $100 a month, not enough to price a buyer out of a market, McBride said. There also are plenty of buyers who are paying cash.
Still, if rates continue to spike, that will chill any recovery in housing, said Patrick Newport, U.S. economist at IHS Global Insight.
“Six percent would do serious damage if it happened in a very short period of time,” Newport said.
In the last three months of last year, more people turned out to buy previously occupied homes in 49 states, according to a report Wednesday from the National Association of Realtors. Prices also improved in more than half of the metropolitan areas the group surveys. That offered hope for a nascent recovery, even after 2010 was the worst year for sales in 13 years.
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 3.92 percent from 3.69 percent. The five-year hit 3.25 percent last month, the lowest rate on records dating back to January 2005.
The average rate on one-year adjustable-rate home loans increased to 3.35 percent from 3.26 percent.
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 and 15-year loan in Freddie Mac’s survey was 0.7 point. The average fee for the five-year and 1-year ARM was 0.6 point.
Copyright © 2011
Thursday, February 10, 2011
States launch help for distressed homeowners
WASHINGTON – Feb. 10, 2011 – A $7.6 billion federal effort to help unemployed homeowners avoid foreclosure will soon be running in all 18 states sharing the funds.
The Hardest Hit Fund, announced by President Obama a year ago and expanded to more states since then, largely targets lower-income jobless or underemployed homeowners.
Those eligible receive forgivable loans for mortgage payments, or they may tap other programs, such as one to help them get current on mortgage payments. Generally, the loans are forgiven after five years if borrowers stay in the homes and keep current on payments.
Next month, all of the states plus the District of Columbia are expected to have launched partial, full or pilot programs, says Treasury Department spokeswoman Andrea Risotto.
California, the No. 1 recipient with almost $2 billion, is expected to announce today that its full program is running after a partial start in January. Florida, No. 2 with $1.1 billion, hopes to launch in March.
Michigan, the first to start in July, had approved 700 borrowers for help as of Dec. 31. That will grow to 19,200 this year and pass 49,000 by July 2013, the state’s plan says.
Oregon took 15,000 homeowner applications over six weeks in December and January for one part of its program. The full program launches this spring, says spokeswoman Lisa Joyce.
The government targeted areas hit hard by unemployment or fallen home prices. States’ programs have different rules and benefits.
Nevada, which expects to launch its program this month, will offer up to $500 a month for up to six months to the unemployed to make mortgage payments. Indiana, planning a pilot next month, will give up to $1,000 a month for up to 18 months, based on where borrowers live. In Florida, the most a homeowner will get is $35,000. In Ohio, it’s $15,000.
In some states, such as California and Nevada, homeowners may get their loan principal reduced if companies that own or manage loans agree to match state dollars. California has $790 million earmarked for principal reduction, but only one national loan servicer has agreed to participate in that program. More are expected soon, says program director Di Richardson.
Some programs, including California’s, were delayed to get loan servicing companies on board and to create systems for states and companies to share data, Richardson says. California aims to help 100,000 homeowners.
The programs will only dent the housing crisis. In Nevada, more than 400,000 households owe more on their mortgages than they’re worth, according to the Lied Institute for Real Estate Studies. Nevada’s program aims to help 22,000 homeowners. Institute director Nasser Daneshvary fears that many may get money, not find jobs and still lose homes. “I don’t think it’ll be very helpful,” he says.
More information can be found by going to www.treasury.gov and typing “Hardest Hit Fund” in the search box.
© Copyright 2011 USA TODAY, a division of Gannett Co. Inc., Julie Schmit.
The Hardest Hit Fund, announced by President Obama a year ago and expanded to more states since then, largely targets lower-income jobless or underemployed homeowners.
Those eligible receive forgivable loans for mortgage payments, or they may tap other programs, such as one to help them get current on mortgage payments. Generally, the loans are forgiven after five years if borrowers stay in the homes and keep current on payments.
Next month, all of the states plus the District of Columbia are expected to have launched partial, full or pilot programs, says Treasury Department spokeswoman Andrea Risotto.
California, the No. 1 recipient with almost $2 billion, is expected to announce today that its full program is running after a partial start in January. Florida, No. 2 with $1.1 billion, hopes to launch in March.
Michigan, the first to start in July, had approved 700 borrowers for help as of Dec. 31. That will grow to 19,200 this year and pass 49,000 by July 2013, the state’s plan says.
Oregon took 15,000 homeowner applications over six weeks in December and January for one part of its program. The full program launches this spring, says spokeswoman Lisa Joyce.
The government targeted areas hit hard by unemployment or fallen home prices. States’ programs have different rules and benefits.
Nevada, which expects to launch its program this month, will offer up to $500 a month for up to six months to the unemployed to make mortgage payments. Indiana, planning a pilot next month, will give up to $1,000 a month for up to 18 months, based on where borrowers live. In Florida, the most a homeowner will get is $35,000. In Ohio, it’s $15,000.
In some states, such as California and Nevada, homeowners may get their loan principal reduced if companies that own or manage loans agree to match state dollars. California has $790 million earmarked for principal reduction, but only one national loan servicer has agreed to participate in that program. More are expected soon, says program director Di Richardson.
Some programs, including California’s, were delayed to get loan servicing companies on board and to create systems for states and companies to share data, Richardson says. California aims to help 100,000 homeowners.
The programs will only dent the housing crisis. In Nevada, more than 400,000 households owe more on their mortgages than they’re worth, according to the Lied Institute for Real Estate Studies. Nevada’s program aims to help 22,000 homeowners. Institute director Nasser Daneshvary fears that many may get money, not find jobs and still lose homes. “I don’t think it’ll be very helpful,” he says.
More information can be found by going to www.treasury.gov and typing “Hardest Hit Fund” in the search box.
© Copyright 2011 USA TODAY, a division of Gannett Co. Inc., Julie Schmit.
Wednesday, February 9, 2011
Homeownership offers a lot of tax benefits.
WASHINGTON – Feb. 9, 2011 – Renting offers zero tax breaks, while buying a home has several tax benefits that make ownership more affordable. Real estate professionals, however, must be careful when providing detailed tax advice to clients to avoid lawsuits – but it’s okay to make sure clients have the information they need to understand all the tax benefits of homeownership.
The following list outlines a few tax benefits of homeownership, according to Stephen Fishman, an author and lawyer who specializes in small business, tax and intellectual property law.
▪ Home mortgage interest deduction: Homeowners can take an itemized deduction on interest paid on a mortgage or mortgages of up to $1 million for a principal residence and/or second home. This deduction could potentially reduce the cost of borrowing by one-third or more.
▪ Property tax deduction: Homeowners can deduct from their federal income taxes state and local property taxes paid on the home.
▪ Deductible homebuying expenses: Several closing costs in a home purchase are also deductible, such as loan origination fees (points), prorated interest on a new loan and prorated property taxes paid at settlement.
▪ $250,000/$500,000 home-sale exclusion: Homeowners who have lived in their home for two of the prior five years prior to sale do not have to pay income tax on the majority of their profit – $250,000 for single homeowners and $500,000 for married homeowners who file jointly.
▪ 14 days of free rental income: Homeowners can rent the home up to 14 days during the year and pay no tax at all on the rental income.
Source: “The Tax benefits of homeownership,” Inman News (Feb. 4, 2011)
© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
The following list outlines a few tax benefits of homeownership, according to Stephen Fishman, an author and lawyer who specializes in small business, tax and intellectual property law.
▪ Home mortgage interest deduction: Homeowners can take an itemized deduction on interest paid on a mortgage or mortgages of up to $1 million for a principal residence and/or second home. This deduction could potentially reduce the cost of borrowing by one-third or more.
▪ Property tax deduction: Homeowners can deduct from their federal income taxes state and local property taxes paid on the home.
▪ Deductible homebuying expenses: Several closing costs in a home purchase are also deductible, such as loan origination fees (points), prorated interest on a new loan and prorated property taxes paid at settlement.
▪ $250,000/$500,000 home-sale exclusion: Homeowners who have lived in their home for two of the prior five years prior to sale do not have to pay income tax on the majority of their profit – $250,000 for single homeowners and $500,000 for married homeowners who file jointly.
▪ 14 days of free rental income: Homeowners can rent the home up to 14 days during the year and pay no tax at all on the rental income.
Source: “The Tax benefits of homeownership,” Inman News (Feb. 4, 2011)
© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
Tuesday, February 8, 2011
Prep work key to selling houses in tough market
Prep work key to selling houses in tough market
MOBILE, Ala. (AP) – Feb. 8, 2011 – “Do you want to put a sign in your yard, or do you want to sell your house?”
That’s the first question Marcile Sims of Oracle Real Estate in Mobile asks sellers.
“It’s so competitive now, and price is everything,” she said. “We’re having to turn down listings because some sellers are asking crazy prices. They would be wasting their time and everyone else’s.”
In today’s buyer’s market, it’s up to the sellers to bring out the best in their homes to stand out amid the glut of inventory, agents said. Translation: Refresh or revive a house before it goes on the market.
The house may not be old, but often it can look worn. Local home inspectors, house stagers and real estate agents offer tips for updates that help attract buyers with some curb appeal.
Walk around the house and look at the condition of the all the wood structures, seeking any minor damage that could be repaired prior to the house being put on the market, said James Elder of Elder Home Inspections in Mobile.
“A Realtor will say stand out on the street and look at the house, see what it looks like when somebody pulls up to the house,” he said. “Are there cosmetic repairs or touchup things that can be done to give the house curb appeal?”
Heating and cooling systems should also be maintained on a regular basis. Home inspector Bob Grafe of Daphne said that during a recent inspection, neither of the house’s two air conditioners had filters.
“Putting in clean AC filters doesn’t cost much money,” he said. “When I see that they are clean, I know the owners care enough to do the maintenance.”
A big problem in the area is water intrusion, Grafe said. Water decays and rots the wood when it leaks in.
“Homeowners should clean out the gutters. They are there to drain water, but when they get full of trash and have trees growing in them, it will start to rot out the wood.”
Leaky faucets, running toilets and those type of interior things are easy to fix, he said.
“The messier the house, the more difficult it is to inspect,” Grafe said. “Pick up and clean up the house and have it ready to go.”
A house that isn’t clean and looks worn out automatically make a potential buyer think upkeep has gone lacking, Sims said. “Get the carpet cleaned, get rid of the smells and get your air conditioner serviced. If you have a septic tank, get it cleaned and inspected. Any blinds that don’t close properly or burned out light bulbs need to be replaced.
“Take all of your pictures down and store them. Get rid of anything that makes the house yours – they don’t want to think of it as yours.”
If the house has furniture in it, make sure you de-clutter, said Angela Blankinchip of Showhomes Mobile/Baldwin based in Daphne. Often it’s just a matter of updating the accessories and rearranging the furniture to make the rooms look bigger, she said.
For vacant houses, she puts furniture in most all the rooms, and if it’s a two-story house she will furnish the entire first floor.
“Staging works,” said Blankinchip, who recently expanded her business and bought the Showhomes franchise in Pensacola, Fla. She has been busy staging model homes for builders, too.
“In today’s market, everyone wants a model home, and that’s usually the one people want to buy.”
Copyright © 2011 The Associated Press, Kathy Jumper.
MOBILE, Ala. (AP) – Feb. 8, 2011 – “Do you want to put a sign in your yard, or do you want to sell your house?”
That’s the first question Marcile Sims of Oracle Real Estate in Mobile asks sellers.
“It’s so competitive now, and price is everything,” she said. “We’re having to turn down listings because some sellers are asking crazy prices. They would be wasting their time and everyone else’s.”
In today’s buyer’s market, it’s up to the sellers to bring out the best in their homes to stand out amid the glut of inventory, agents said. Translation: Refresh or revive a house before it goes on the market.
The house may not be old, but often it can look worn. Local home inspectors, house stagers and real estate agents offer tips for updates that help attract buyers with some curb appeal.
Walk around the house and look at the condition of the all the wood structures, seeking any minor damage that could be repaired prior to the house being put on the market, said James Elder of Elder Home Inspections in Mobile.
“A Realtor will say stand out on the street and look at the house, see what it looks like when somebody pulls up to the house,” he said. “Are there cosmetic repairs or touchup things that can be done to give the house curb appeal?”
Heating and cooling systems should also be maintained on a regular basis. Home inspector Bob Grafe of Daphne said that during a recent inspection, neither of the house’s two air conditioners had filters.
“Putting in clean AC filters doesn’t cost much money,” he said. “When I see that they are clean, I know the owners care enough to do the maintenance.”
A big problem in the area is water intrusion, Grafe said. Water decays and rots the wood when it leaks in.
“Homeowners should clean out the gutters. They are there to drain water, but when they get full of trash and have trees growing in them, it will start to rot out the wood.”
Leaky faucets, running toilets and those type of interior things are easy to fix, he said.
“The messier the house, the more difficult it is to inspect,” Grafe said. “Pick up and clean up the house and have it ready to go.”
A house that isn’t clean and looks worn out automatically make a potential buyer think upkeep has gone lacking, Sims said. “Get the carpet cleaned, get rid of the smells and get your air conditioner serviced. If you have a septic tank, get it cleaned and inspected. Any blinds that don’t close properly or burned out light bulbs need to be replaced.
“Take all of your pictures down and store them. Get rid of anything that makes the house yours – they don’t want to think of it as yours.”
If the house has furniture in it, make sure you de-clutter, said Angela Blankinchip of Showhomes Mobile/Baldwin based in Daphne. Often it’s just a matter of updating the accessories and rearranging the furniture to make the rooms look bigger, she said.
For vacant houses, she puts furniture in most all the rooms, and if it’s a two-story house she will furnish the entire first floor.
“Staging works,” said Blankinchip, who recently expanded her business and bought the Showhomes franchise in Pensacola, Fla. She has been busy staging model homes for builders, too.
“In today’s market, everyone wants a model home, and that’s usually the one people want to buy.”
Copyright © 2011 The Associated Press, Kathy Jumper.
Friday, February 4, 2011
Addict ‘homebuyers’ nab prescription drugs from houses up for sale
--Sellers, this is ridiculous, but the lengths thieves will go to take advantage of people will never cease to amaze:
CLEVELAND, Ohio – Feb. 3, 2011 – Real estate agents who hold open houses or show properties by appointment should remember to warn owners to empty their medicine cabinet of prescription drugs. Doing so removes the primary attraction for addicts who enter the premises on the pretense of being a prospective buyer.
“Guard your [medicine] with the same scrutiny you would guard your wallet or your credit cards,” advises Detective Dennis Luken, vice president of the National Association of Drug Diversion Investigators’ Ohio division.
The law enforcement official, who says that drug thefts from for-sale homes is “everywhere” and is “more common than you think,” has created a flyer for realty professionals and their clients. It recommends placing controlled-substance prescriptions in a locked container or in an obscure hiding place, such as inside a pair of boots.
Luken says it’s important to keep even empty pill bottles out of sight, since addicts have been known to call in a refill based on the label information, go to a pharmacy and pick it up there.
Carol Woodard, chair of the Cleveland Area Board of Realtors, reminds sellers that medicines are not the only vulnerable belongings that need to be protected, however. “Have a filing cabinet or some drawers somewhere that can be locked,” she says. “Personal records, credit cards, mail – anything of that sort must be under lock and key.”
© Copyright 2011 INFORMATION, INC
“Guard your [medicine] with the same scrutiny you would guard your wallet or your credit cards,” advises Detective Dennis Luken, vice president of the National Association of Drug Diversion Investigators’ Ohio division.
The law enforcement official, who says that drug thefts from for-sale homes is “everywhere” and is “more common than you think,” has created a flyer for realty professionals and their clients. It recommends placing controlled-substance prescriptions in a locked container or in an obscure hiding place, such as inside a pair of boots.
Luken says it’s important to keep even empty pill bottles out of sight, since addicts have been known to call in a refill based on the label information, go to a pharmacy and pick it up there.
Carol Woodard, chair of the Cleveland Area Board of Realtors, reminds sellers that medicines are not the only vulnerable belongings that need to be protected, however. “Have a filing cabinet or some drawers somewhere that can be locked,” she says. “Personal records, credit cards, mail – anything of that sort must be under lock and key.”
© Copyright 2011 INFORMATION, INC
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