Michele Lerner, author of Homebuying: Tough Times, First Time, Any Time, offers reasons why real estate is likely to improve in 2011. Here are five reasons she thinks consumers should consider a home purchase next year:
▪ Mortgage rates will stay low. Even with rates climbing — maybe to as high as 6 percent by 2012 — they are still well below where they have been historically.
▪ Tax cuts could help. Extending the tax cuts could encourage a more rapid recovery for the economy.
▪ Americans want to be home owners. A recent Fannie Mae survey showed that Americans still believe a home is a safe and desirable investment.
▪ Builders are about to begin building. Home builders have been sitting on the sidelines. This year, they think pent-up demand will create an appetite for new homes.
▪ Homes are shrinking. Homes are getting smaller, which has made them more affordable.
Source: Investopedia, Michele Lerner (12/24/2010)
Thursday, December 30, 2010
Predictions for Housing in 2011
Predictions for Housing in 2011
Will housing values increase in 2011? Fortune.com offers both a bullish and a bearish prediction.
The bulls say: Affordability is at its highest level. Billionaire Warren Buffet is among those who believe this is a sign the slump is about to end. Buffet writes: "Prices will remain far below 'bubble' levels, of course, but for every seller (or lender) hurt by this there will be a buyer who benefits."
The bears say: It’s not over yet. Housing is still overpriced and inventories are enormous, says Daryl Jones, an analyst at investment research firm Hedgeye. Jones warns that home prices could fall another 15 percent to 30 percent because no one is buying.
Source: Fortune.com, Nin-Hai Tseng (12/27/2010)
Will housing values increase in 2011? Fortune.com offers both a bullish and a bearish prediction.
The bulls say: Affordability is at its highest level. Billionaire Warren Buffet is among those who believe this is a sign the slump is about to end. Buffet writes: "Prices will remain far below 'bubble' levels, of course, but for every seller (or lender) hurt by this there will be a buyer who benefits."
The bears say: It’s not over yet. Housing is still overpriced and inventories are enormous, says Daryl Jones, an analyst at investment research firm Hedgeye. Jones warns that home prices could fall another 15 percent to 30 percent because no one is buying.
Source: Fortune.com, Nin-Hai Tseng (12/27/2010)
Foreclosure Inventory Rises, Rate Drops
The November Mortgage Monitor report released by Lender Processing Services shows that while the number of bank-owned homes continues to drop as loan servicers delay foreclosures in the wake of government investigations, delinquent loans are increasing.
Nearly 2.2 million loans are 90 days or more past due but are not yet in foreclosure. The report also shows that among the one-third of loans that are 90 days or more delinquent, borrowers have not made a payment in a year.
Foreclosure inventories also continued to rise for the fifth straight month as foreclosures continued and sales declined. The inventory of foreclosed properties consisting of jumbo loans was seven times higher than it was in January 2008, and six times higher for agency prime loans.
Other results from the report include:
· Total U.S. loan delinquency rate: 9.02 percent
· Total U.S. foreclosure inventory rate: 4.08 percent
· Total U.S. non-current loan rate: 13.10 percent
· States with most non-current loans: Florida, Nevada, Mississippi, Georgia, New Jersey
· States with fewest non-current loans: North Dakota, South Dakota, Alaska, Wyoming, Montana
Source: Lender Processing Services (12/27/2010)
Nearly 2.2 million loans are 90 days or more past due but are not yet in foreclosure. The report also shows that among the one-third of loans that are 90 days or more delinquent, borrowers have not made a payment in a year.
Foreclosure inventories also continued to rise for the fifth straight month as foreclosures continued and sales declined. The inventory of foreclosed properties consisting of jumbo loans was seven times higher than it was in January 2008, and six times higher for agency prime loans.
Other results from the report include:
· Total U.S. loan delinquency rate: 9.02 percent
· Total U.S. foreclosure inventory rate: 4.08 percent
· Total U.S. non-current loan rate: 13.10 percent
· States with most non-current loans: Florida, Nevada, Mississippi, Georgia, New Jersey
· States with fewest non-current loans: North Dakota, South Dakota, Alaska, Wyoming, Montana
Source: Lender Processing Services (12/27/2010)
HGTV Looking for Makeover Candidates
Anyone who would like to have HGTV roll up in an 18-wheeler and do an instant home makeover should get ready to apply.
Beginning Saturday, Jan. 1, visitors can go to HGTV.com and upload photos of their homes in need of transformation. Winners will receive a high-end home makeover and the chance to appear on HGTV.
HGTV personalities participating in the makeovers include David Bromstad (Color Splash), John Gidding (Curb Appeal: The Block), Genevieve Gorder (Dear Genevieve), Sabrina Soto (Get It Sold and Real Estate Intervention), and Vern Yip (HGTV Design Star). Each week, one designer will pull up to the home selected for a makeover in a specially outfitted HGTV truck.
The series will air during the summer of 2011.
Source: HGTV (12/29/2010)
Beginning Saturday, Jan. 1, visitors can go to HGTV.com and upload photos of their homes in need of transformation. Winners will receive a high-end home makeover and the chance to appear on HGTV.
HGTV personalities participating in the makeovers include David Bromstad (Color Splash), John Gidding (Curb Appeal: The Block), Genevieve Gorder (Dear Genevieve), Sabrina Soto (Get It Sold and Real Estate Intervention), and Vern Yip (HGTV Design Star). Each week, one designer will pull up to the home selected for a makeover in a specially outfitted HGTV truck.
The series will air during the summer of 2011.
Source: HGTV (12/29/2010)
Sunday, December 26, 2010
Tax Deal Has Home Owner Benefits
Daily Real Estate News | December 22, 2010
Home owners were among those who benefited from the tax compromise that President Obama signed last week. Among the most home owner-friendly provisions are:
Deductions for private mortgage insurance: The agreement extends through 2011 a provision allowing home owners to deduct mortgage insurance premiums. To qualify for the full deduction, homeowners must have an adjusted gross income of $100,000 or less. Taxpayers with AGI of $100,000 to $109,000 can claim a partial deduction. Borrowers can’t deduct mortgage premiums on home loans that closed before 2007.
Tax credits for energy-efficient home improvements. Home owners who install insulation, new windows or other energy-saving improvement in 2010 are eligible for a tax credit worth 30 percent of the cost up to a lifetime maximum of $1,500. Improvements must be bought and installed by Dec. 31. Those who delay improvements to 2011 still get a tax credit, but it is capped at $500.
Home owners were among those who benefited from the tax compromise that President Obama signed last week. Among the most home owner-friendly provisions are:
Deductions for private mortgage insurance: The agreement extends through 2011 a provision allowing home owners to deduct mortgage insurance premiums. To qualify for the full deduction, homeowners must have an adjusted gross income of $100,000 or less. Taxpayers with AGI of $100,000 to $109,000 can claim a partial deduction. Borrowers can’t deduct mortgage premiums on home loans that closed before 2007.
Tax credits for energy-efficient home improvements. Home owners who install insulation, new windows or other energy-saving improvement in 2010 are eligible for a tax credit worth 30 percent of the cost up to a lifetime maximum of $1,500. Improvements must be bought and installed by Dec. 31. Those who delay improvements to 2011 still get a tax credit, but it is capped at $500.
9.7% Jump in U.S. Population
Census Shows 9.7% Jump in U.S. Population
The South and West had greatest population gains, according to newly-released 2010 Census data, as total U.S. population tops 300 million for the first time.
The South and West had greatest population gains, according to newly-released 2010 Census data, as total U.S. population tops 300 million for the first time.
Tuesday, December 21, 2010
Colorado is country's ninth-fastest growing state
Colorado is still growing like gang-busters, but not enough to warrant another member of Congress, according to preliminary U.S. Census data released today.
From 2000 to 2010, Colorado was the ninth-fastest growing state in the U.S. by population increase — 727,935 residents — and percentage increase -- 16.92 percent.
U.S. House districts are divided up based not on growth but each state's share of the nation's population of 308.7 million.
Colorado would have needed to add roughly 269,000 more residents to its population of 5.02 million to gain an eighth seat, according to census analysts.
"That was far enough out that you weren't really in the running to get another district," said Kimball Brace, the president of Virginia-based Election Data Services, which analyzes census data nationwide for legislative redistricting, election administration and political needs.
The census hasn't yet released data showing population shifts within the state, which could mean shifts in voter registration and state and federal representation.
Population in reliably Republican rural districts could have shifted to the more politically diverse suburbs and cities, for example.
Preliminary population estimates released last year, indicated Denver County had grown from 554,636 residents in 2000 to 610,345 residents as of July 1, 2009.
Meanwhile, Prowers County on the Eastern Plains fell from 14,483 residents in the 2000 to an estimated 12,082 last year.
Colorado will remain at seven House members, which in January will include three Democrats, all from the Denver-Boulder metro area, and four Republicans.
Colorado's growth, while remarkable, has slowed since the 1990s, when the state grew by a staggering 30.56 percent, or more than 1 million newcomers.
After that census, Colorado added a seventh district that covers parts of Adams, Arapahoe, and Jefferson counties. Republican Bob Beauprez held the seat from 2003 through 2006. Democratic Rep. Ed Perlmutter of Golden replaced him in 2007 and was elected to a third term in November.
While the primary role of the census is to determine government representation and spending, it also drives business, said Dr. Maclyn Clouse, a professor of finance at the University of Denver.
"From the business side of things, growth is a category you want to be in," he said. "It tells the business world this is a state that's still growing, still attracting new residents who want to be here instead of somewhere else, and business investment and jobs are likely to follow.
"I think the news that Colorado is an attractive place to live and do business has gotten out a little bit."
By Joey Bunch
The Denver Post
From 2000 to 2010, Colorado was the ninth-fastest growing state in the U.S. by population increase — 727,935 residents — and percentage increase -- 16.92 percent.
U.S. House districts are divided up based not on growth but each state's share of the nation's population of 308.7 million.
Colorado would have needed to add roughly 269,000 more residents to its population of 5.02 million to gain an eighth seat, according to census analysts.
"That was far enough out that you weren't really in the running to get another district," said Kimball Brace, the president of Virginia-based Election Data Services, which analyzes census data nationwide for legislative redistricting, election administration and political needs.
The census hasn't yet released data showing population shifts within the state, which could mean shifts in voter registration and state and federal representation.
Population in reliably Republican rural districts could have shifted to the more politically diverse suburbs and cities, for example.
Preliminary population estimates released last year, indicated Denver County had grown from 554,636 residents in 2000 to 610,345 residents as of July 1, 2009.
Meanwhile, Prowers County on the Eastern Plains fell from 14,483 residents in the 2000 to an estimated 12,082 last year.
Colorado will remain at seven House members, which in January will include three Democrats, all from the Denver-Boulder metro area, and four Republicans.
Colorado's growth, while remarkable, has slowed since the 1990s, when the state grew by a staggering 30.56 percent, or more than 1 million newcomers.
After that census, Colorado added a seventh district that covers parts of Adams, Arapahoe, and Jefferson counties. Republican Bob Beauprez held the seat from 2003 through 2006. Democratic Rep. Ed Perlmutter of Golden replaced him in 2007 and was elected to a third term in November.
While the primary role of the census is to determine government representation and spending, it also drives business, said Dr. Maclyn Clouse, a professor of finance at the University of Denver.
"From the business side of things, growth is a category you want to be in," he said. "It tells the business world this is a state that's still growing, still attracting new residents who want to be here instead of somewhere else, and business investment and jobs are likely to follow.
"I think the news that Colorado is an attractive place to live and do business has gotten out a little bit."
By Joey Bunch
The Denver Post
Monday, December 20, 2010
10 Reasons to Buy a Home
Enough with the doom and gloom about homeownership. Brett Arends explains why
owning a home is a good thing.
The Wall Street Journal, By Brett Arends
September 16, 2010
Enough with the doom and gloom about homeownership.
Sure, maybe there's more pain to come in the housing market. But when Time magazine starts
running covers that declare "Owning a home may no longer make economic sense," it's time to
say: Enough is enough. This is what "capitulation" looks like. Everyone has given up.
After all, at the peak of the bubble five years ago, Time had a different take. "Home Sweet
Home," declared its cover then, as it celebrated the boom and asked: "Will your house make your
rich?"
But it's not enough just to be contrarian. So here are 10 reasons why it's good to buy a home.
1. You can get a good deal. Especially if you play hardball. This is a buyer's market. Most of
the other buyers have now vanished, as the tax credits on purchases have just expired. We're four
to five years into the biggest housing bust in modern history. And prices have come down a long
way– about 30% from their peak, according to Standard & Poor's Case-Shiller Index, which
tracks home prices in 20 big cities. Yes, it's mixed. New York is only down 20%. Arizona has
halved. Will prices fall further? Sure, they could. You'll never catch the bottom. It doesn't really
matter so much in the long haul.
Where is fair value? Fund manager Jeremy Grantham at GMO, who predicted the bust with
remarkable accuracy, said two years ago that home prices needed to fall another 17% to reach
fair value in relation to household incomes. Case-Shiller since then: Down 18%.
2. Mortgages are cheap. You can get a 30-year loan for around 4.3%. What's not to like? These
are the lowest rates on record. As recently as two years ago they were about 6.3%. That drop
slashes your monthly repayment by a fifth. If inflation picks up, you won't see these mortgage
rates again in your lifetime. And if we get deflation, and rates fall further, you can refi.
3. You'll save on taxes. You can deduct the mortgage interest from your income taxes. You can
deduct your real estate taxes. And you'll get a tax break on capital gains–if any–when you sell.
Sure, you'll need to do your math. You'll only get the income tax break if you itemize your
deductions, and many people may be better off taking the standard deduction instead. The breaks
are more valuable the more you earn, and the bigger your mortgage. But many people will find
that these tax breaks mean owning costs them less, often a lot less, than renting.
4. It'll be yours. You can have the kitchen and bathrooms you want. You can move the walls,
build an extension–zoning permitted–or paint everything bright orange. Few landlords are so
indulgent; for renters, these types of changes are often impossible. You'll feel better about your
own place if you own it than if you rent. Many years ago, when I was working for a political
campaign in England, I toured a working-class northern town. Mrs. Thatcher had just begun
selling off public housing to the tenants. "You can tell the ones that have been bought," said my
local guide. "They've painted the front door. It's the first thing people do when they buy." It was
a small sign that said something big.
5. You'll get a better home. In many parts of the country it can be really hard to find a good
rental. All the best places are sold as condos. Money talks. Once again, this is a case by case
issue: In Miami right now there are so many vacant luxury condos that owners will rent them out
for a fraction of the cost of owning. But few places are so favored. Generally speaking, if you
want the best home in the best neighborhood, you're better off buying.
6. It offers some inflation protection. No, it's not perfect. But studies by Professor Karl "Chip"
Case (of Case-Shiller), and others, suggest that over the long-term housing has tended to beat
inflation by a couple of percentage points a year. That's valuable inflation insurance, especially if
you're young and raising a family and thinking about the next 30 or 40 years. In the recent past,
inflation-protected government bonds, or TIPS, offered an easier form of inflation insurance. But
yields there have plummeted of late. That also makes homeownership look a little better by
contrast.
7. It's risk capital. No, your home isn't the stock market and you shouldn't view it as the way to
get rich. But if the economy does surprise us all and start booming, sooner or later real estate
prices will head up again, too. One lesson from the last few years is that stocks are incredibly
hard for most normal people to own in large quantities–for practical as well as psychological
reasons. Equity in a home is another way of linking part of your portfolio to the long-term
growth of the economy–if it happens–and still managing to sleep at night.
8. It's forced savings. If you can rent an apartment for $2,000 month instead of buying one for
$2,400 a month, renting may make sense. But will you save that $400 for your future? A lot of
people won't. Most, I dare say. Once again, you have to do your math, but the part of your
mortgage payment that goes to principal repayment isn't a cost. You're just paying yourself by
building equity. As a forced monthly saving, it's a good discipline.
9. There is a lot to choose from. There is a glut of homes in most of the country. The National
Association of Realtors puts the current inventory at around 4 million homes. That's below last
year's peak, but well above typical levels, and enough for about a year's worth of sales. More
keeping coming onto the market, too, as the banks slowly unload their inventory of unsold
properties. That means great choice, as well as great prices.
10. Sooner or later, the market will clear. Demand and supply will meet. The population is
forecast to grow by more than 100 million people over the next 40 years. That means maybe 40
million new households looking for homes. Meanwhile, this housing glut will work itself out.
Many of the homes will be bought. But many more will simply be destroyed–either deliberately,
or by inaction. This is already happening. Even two years ago, when I toured the housing
slumpin western Florida, I saw bankrupt condo developments that were fast becoming derelict.
And, finally, a lot of the "glut" simply won't matter: It's concentrated in a few areas, like Florida
and Nevada. Unless you live there, the glut won't have any long-term impact on housing supply
in your town.
owning a home is a good thing.
The Wall Street Journal, By Brett Arends
September 16, 2010
Enough with the doom and gloom about homeownership.
Sure, maybe there's more pain to come in the housing market. But when Time magazine starts
running covers that declare "Owning a home may no longer make economic sense," it's time to
say: Enough is enough. This is what "capitulation" looks like. Everyone has given up.
After all, at the peak of the bubble five years ago, Time had a different take. "Home Sweet
Home," declared its cover then, as it celebrated the boom and asked: "Will your house make your
rich?"
But it's not enough just to be contrarian. So here are 10 reasons why it's good to buy a home.
1. You can get a good deal. Especially if you play hardball. This is a buyer's market. Most of
the other buyers have now vanished, as the tax credits on purchases have just expired. We're four
to five years into the biggest housing bust in modern history. And prices have come down a long
way– about 30% from their peak, according to Standard & Poor's Case-Shiller Index, which
tracks home prices in 20 big cities. Yes, it's mixed. New York is only down 20%. Arizona has
halved. Will prices fall further? Sure, they could. You'll never catch the bottom. It doesn't really
matter so much in the long haul.
Where is fair value? Fund manager Jeremy Grantham at GMO, who predicted the bust with
remarkable accuracy, said two years ago that home prices needed to fall another 17% to reach
fair value in relation to household incomes. Case-Shiller since then: Down 18%.
2. Mortgages are cheap. You can get a 30-year loan for around 4.3%. What's not to like? These
are the lowest rates on record. As recently as two years ago they were about 6.3%. That drop
slashes your monthly repayment by a fifth. If inflation picks up, you won't see these mortgage
rates again in your lifetime. And if we get deflation, and rates fall further, you can refi.
3. You'll save on taxes. You can deduct the mortgage interest from your income taxes. You can
deduct your real estate taxes. And you'll get a tax break on capital gains–if any–when you sell.
Sure, you'll need to do your math. You'll only get the income tax break if you itemize your
deductions, and many people may be better off taking the standard deduction instead. The breaks
are more valuable the more you earn, and the bigger your mortgage. But many people will find
that these tax breaks mean owning costs them less, often a lot less, than renting.
4. It'll be yours. You can have the kitchen and bathrooms you want. You can move the walls,
build an extension–zoning permitted–or paint everything bright orange. Few landlords are so
indulgent; for renters, these types of changes are often impossible. You'll feel better about your
own place if you own it than if you rent. Many years ago, when I was working for a political
campaign in England, I toured a working-class northern town. Mrs. Thatcher had just begun
selling off public housing to the tenants. "You can tell the ones that have been bought," said my
local guide. "They've painted the front door. It's the first thing people do when they buy." It was
a small sign that said something big.
5. You'll get a better home. In many parts of the country it can be really hard to find a good
rental. All the best places are sold as condos. Money talks. Once again, this is a case by case
issue: In Miami right now there are so many vacant luxury condos that owners will rent them out
for a fraction of the cost of owning. But few places are so favored. Generally speaking, if you
want the best home in the best neighborhood, you're better off buying.
6. It offers some inflation protection. No, it's not perfect. But studies by Professor Karl "Chip"
Case (of Case-Shiller), and others, suggest that over the long-term housing has tended to beat
inflation by a couple of percentage points a year. That's valuable inflation insurance, especially if
you're young and raising a family and thinking about the next 30 or 40 years. In the recent past,
inflation-protected government bonds, or TIPS, offered an easier form of inflation insurance. But
yields there have plummeted of late. That also makes homeownership look a little better by
contrast.
7. It's risk capital. No, your home isn't the stock market and you shouldn't view it as the way to
get rich. But if the economy does surprise us all and start booming, sooner or later real estate
prices will head up again, too. One lesson from the last few years is that stocks are incredibly
hard for most normal people to own in large quantities–for practical as well as psychological
reasons. Equity in a home is another way of linking part of your portfolio to the long-term
growth of the economy–if it happens–and still managing to sleep at night.
8. It's forced savings. If you can rent an apartment for $2,000 month instead of buying one for
$2,400 a month, renting may make sense. But will you save that $400 for your future? A lot of
people won't. Most, I dare say. Once again, you have to do your math, but the part of your
mortgage payment that goes to principal repayment isn't a cost. You're just paying yourself by
building equity. As a forced monthly saving, it's a good discipline.
9. There is a lot to choose from. There is a glut of homes in most of the country. The National
Association of Realtors puts the current inventory at around 4 million homes. That's below last
year's peak, but well above typical levels, and enough for about a year's worth of sales. More
keeping coming onto the market, too, as the banks slowly unload their inventory of unsold
properties. That means great choice, as well as great prices.
10. Sooner or later, the market will clear. Demand and supply will meet. The population is
forecast to grow by more than 100 million people over the next 40 years. That means maybe 40
million new households looking for homes. Meanwhile, this housing glut will work itself out.
Many of the homes will be bought. But many more will simply be destroyed–either deliberately,
or by inaction. This is already happening. Even two years ago, when I toured the housing
slumpin western Florida, I saw bankrupt condo developments that were fast becoming derelict.
And, finally, a lot of the "glut" simply won't matter: It's concentrated in a few areas, like Florida
and Nevada. Unless you live there, the glut won't have any long-term impact on housing supply
in your town.
Worlds Most Expensive Home 2010
The most expensive house in the world - a billion dollar home.
It’s not completely finished in this photo, but the fully completed version doesn’t look all that different. It's on the:
Pictures of World's Most Expensive Home
Exposed steel and glass was the desired look apparently. Very post modern. And yes, that entire thing is for one family.
Located in Mumbai, the most expensive house in the world is owned (fittingly) by the richest man in India: Mukesh Ambani, age 53. He lives in the $1 billion skyscraper mansion with his wife, three children and 600 servants.
Named Anitlla, the entire structure is 27 stories high, although to be fair the first 6 floors are a 160-car garage.
The amenities are as extravagant as they are endless, but what would you expect from the fourth richest human on the planet? The most expensive house in the world has:
Private gym
Ballroom
50-seat movie theater
Health spa
Several swimming pools
3 helicopter pads
The house, well, building, also features small trees in the residence in an elevated garden with high ceilings.
The big question is this: How many bedrooms are in the 37,000 square meter monolith? That’s 398,264.69 square feet by the way, more space than at the Palace of Versailles.
It’s not completely finished in this photo, but the fully completed version doesn’t look all that different. It's on the:
Pictures of World's Most Expensive Home
Exposed steel and glass was the desired look apparently. Very post modern. And yes, that entire thing is for one family.
Located in Mumbai, the most expensive house in the world is owned (fittingly) by the richest man in India: Mukesh Ambani, age 53. He lives in the $1 billion skyscraper mansion with his wife, three children and 600 servants.
Named Anitlla, the entire structure is 27 stories high, although to be fair the first 6 floors are a 160-car garage.
The amenities are as extravagant as they are endless, but what would you expect from the fourth richest human on the planet? The most expensive house in the world has:
Private gym
Ballroom
50-seat movie theater
Health spa
Several swimming pools
3 helicopter pads
The house, well, building, also features small trees in the residence in an elevated garden with high ceilings.
The big question is this: How many bedrooms are in the 37,000 square meter monolith? That’s 398,264.69 square feet by the way, more space than at the Palace of Versailles.
2 Interesting Facts for the Day
EVERY HOMEY - Of the 51 million households that own a home and have a mortgage, the average outstanding debt is $200,000. There are another 24 million households that own their home free-and-clear (source: Census Bureau). 6/21/10 issue, # 9.
DIDN’T SOLVE THE PROBLEM - 48.4% of home mortgages modified by lenders in the 1st quarter 2009 were 90 days or more delinquent just 1-year later (source: Office of the Comptroller of the Currency). 7/19/10 issue, # 8.
DIDN’T SOLVE THE PROBLEM - 48.4% of home mortgages modified by lenders in the 1st quarter 2009 were 90 days or more delinquent just 1-year later (source: Office of the Comptroller of the Currency). 7/19/10 issue, # 8.
Friday, December 17, 2010
Rising Rates Could Get Buyers Moving
Daily Real Estate News | December 13, 2010 | Share
Rising Rates Could Get Buyers Moving
Ironically, it could be rising interest rates that finally push home buyers off the fence and into the market.
While Congress is debating the tax-cut compromise, the financial markets have interpreted the proposal as a development that will likely push mortgage interest rates higher than they have been for months.
Analysts are predicting that buyers will move quickly when it looks like rates are going up and are unlikely to come down. "Once people see this might actually be the bottom, they’ll go for it," says Paul Dales of Capital Economics.
The average rate for a 30-year fixed loan increased to 4.61 percent in the week ended Thursday, Dec. 9, from 4.46 percent the previous week. The average 15-year rate rose to 3.96 percent from 3.81 percent.
Source: Fortune, Nin-Hai Tseng (12/10/2010)
Rising Rates Could Get Buyers Moving
Ironically, it could be rising interest rates that finally push home buyers off the fence and into the market.
While Congress is debating the tax-cut compromise, the financial markets have interpreted the proposal as a development that will likely push mortgage interest rates higher than they have been for months.
Analysts are predicting that buyers will move quickly when it looks like rates are going up and are unlikely to come down. "Once people see this might actually be the bottom, they’ll go for it," says Paul Dales of Capital Economics.
The average rate for a 30-year fixed loan increased to 4.61 percent in the week ended Thursday, Dec. 9, from 4.46 percent the previous week. The average 15-year rate rose to 3.96 percent from 3.81 percent.
Source: Fortune, Nin-Hai Tseng (12/10/2010)
Top 20 states by foreclosure rate in November
Here is a list of states with the highest foreclosure rates in November. The ratio shows, for example, that one out of every 99 households in Nevada received a foreclosure notice during this period.
Rate State Ratio of foreclosures to Total properties
rank households in state with filings
1 Nevada 1:99 11,371
2 Utah 1:221 4,279
3 California 1:233 57,378
4 Arizona 1:262 10,384
5 Florida 1:267 32,938
6 Georgia 1:279 14,423
7 Michigan 1:296 15,311
8 Idaho 1:301 2,133
9 Illinois 1:408 12,941
10 Colorado 1:433 4,970
11 Ohio 1:486 10,458
12 South Carolina 1:530 3,876
13 Hawaii 1:585 877
14 Wisconsin 1:607 4,231
15 Oregon 1:658 2,476
16 New Jersey 1:668 5,264
17 Washington 1:686 4,067
18 Virginia 1:711 4,649
19 New Mexico 1:717 1,215
20 Texas 1:718 13,369
Rate State Ratio of foreclosures to Total properties
rank households in state with filings
1 Nevada 1:99 11,371
2 Utah 1:221 4,279
3 California 1:233 57,378
4 Arizona 1:262 10,384
5 Florida 1:267 32,938
6 Georgia 1:279 14,423
7 Michigan 1:296 15,311
8 Idaho 1:301 2,133
9 Illinois 1:408 12,941
10 Colorado 1:433 4,970
11 Ohio 1:486 10,458
12 South Carolina 1:530 3,876
13 Hawaii 1:585 877
14 Wisconsin 1:607 4,231
15 Oregon 1:658 2,476
16 New Jersey 1:668 5,264
17 Washington 1:686 4,067
18 Virginia 1:711 4,649
19 New Mexico 1:717 1,215
20 Texas 1:718 13,369
Foreclosures plunge, but don't cheer yet
CNN Money - - The number of foreclosure notices filed in November plunged 21%, the biggest month-over-month drop ever recorded by RealtyTrac, the online foreclosure marketer. Filings fell 14% compared with November 2009.
Swift Rise in Yields Pushes Up Mortgages
By NICK TIMIRAOS And MARK GONGLOFF
The sudden jump in Treasury yields has driven 30-year mortgage rates above 5%, keeping pressure on the struggling housing market and countering the Federal Reserve's efforts to help the economy.
The average 30-year fixed-rate mortgage hit a six-month high of 5.09% on Thursday, according to a survey by data tracker HSH Associates. A separate survey by Freddie Mac showed rates averaged 4.83% for the week ending Thursday, up from a record low 4.17% just one month ago.
"I've been doing this 15 years, and I've never seen rates rise this fast," said Wade Douroux, president and CEO of Resource Financial Services, a mortgage banking firm in Columbia, S.C.
Rising mortgage rates are one immediate consequence of the unusually large jump in Treasury yields in recent weeks. The yield on the 10-year note, which directly affects mortgage rates, closed Thursday at 3.473%, up from its October low of 2.382%.
The sudden jump in Treasury yields has driven 30-year mortgage rates above 5%, keeping pressure on the struggling housing market and countering the Federal Reserve's efforts to help the economy.
The average 30-year fixed-rate mortgage hit a six-month high of 5.09% on Thursday, according to a survey by data tracker HSH Associates. A separate survey by Freddie Mac showed rates averaged 4.83% for the week ending Thursday, up from a record low 4.17% just one month ago.
"I've been doing this 15 years, and I've never seen rates rise this fast," said Wade Douroux, president and CEO of Resource Financial Services, a mortgage banking firm in Columbia, S.C.
Rising mortgage rates are one immediate consequence of the unusually large jump in Treasury yields in recent weeks. The yield on the 10-year note, which directly affects mortgage rates, closed Thursday at 3.473%, up from its October low of 2.382%.
Energy Tax Credit Deadline Looms
Daily Real Estate News | December 15, 2010 | Share
Energy Tax Credit Deadline Looms
The Dec. 31 expiration of most energy tax credits is driving a mini-boom in home improvements.
The federal tax credit covers 30 percent of the cost of various conservation upgrades, up to maximum of $1,500. In many states, it can be combined with state and energy company credits to potentially double the credit.
Congress is considering a smaller incentive for next year. Currently, the proposed new credit would cover 10 percent of the cost of conservation upgrades to a maximum of $500. The measure has passed the House, but there is no guarantee that it will pass the Senate.
Source: The News & Observer (Raleigh-Durham, N.C.), John Murawski (12/14/2010)
Energy Tax Credit Deadline Looms
The Dec. 31 expiration of most energy tax credits is driving a mini-boom in home improvements.
The federal tax credit covers 30 percent of the cost of various conservation upgrades, up to maximum of $1,500. In many states, it can be combined with state and energy company credits to potentially double the credit.
Congress is considering a smaller incentive for next year. Currently, the proposed new credit would cover 10 percent of the cost of conservation upgrades to a maximum of $500. The measure has passed the House, but there is no guarantee that it will pass the Senate.
Source: The News & Observer (Raleigh-Durham, N.C.), John Murawski (12/14/2010)
10 States Losing the Most Residents
Daily Real Estate News | December 17, 2010 | Share
10 States Losing the Most Residents
Using data from Moody’s Economy.com, Forbes identified the top-10 states where more residents are leaving than arriving.
The factors that encourage outbound migration from these states are mostly economic — high employment and high cost of living — although both Louisiana and Mississippi have been affected by natural disasters.
The 10 states that have said goodbye to the most residents are:
1. New York
2. Illinois
3. Ohio
4. Nebraska
5. Kansas
6. Iowa
7. Louisiana
8. North Dakota
9. South Dakota
10. Mississippi
10 States Losing the Most Residents
Using data from Moody’s Economy.com, Forbes identified the top-10 states where more residents are leaving than arriving.
The factors that encourage outbound migration from these states are mostly economic — high employment and high cost of living — although both Louisiana and Mississippi have been affected by natural disasters.
The 10 states that have said goodbye to the most residents are:
1. New York
2. Illinois
3. Ohio
4. Nebraska
5. Kansas
6. Iowa
7. Louisiana
8. North Dakota
9. South Dakota
10. Mississippi
Condos Face FHA Deadlines
Daily Real Estate News | December 13, 2010 | Share
Condos Face FHA Deadlines
An estimated 2,200 condominium projects nationwide last week lost their eligibility for Federal Housing Administration-guaranteed sales and refinancing.
Unless condo officials take action, another 23,000 residential condos with housing units numbering in the tens of thousands will lose their eligibility by spring. That means that buyers of units in these buildings won’t be eligible for FHA financing.
This situation was the result of an effort by the FHA to guarantee that condos and their underlying home owners associations have adequate budgets, legal documents, and other things that lead to financial stability.
In 2009, the FHA spelled out tough standards that required that condo projects approved for FHA financial before 2007 have their approvals renewed by Dec. 7, 2010. About 25,000 projects missed the cutoff. Because there were so many, the FHA extended the deadline, setting new deadlines through out 2011. The only losers were the 2,200 projects that had the oldest approvals.
The FHA urges all condominium owners to get in touch with their associations and push them to meet the revised deadlines.
For more information, or to check the status of a condo project, visit (select by state): https://entp.hud.gov/idapp/html/condlook.cfm
Source: Charlotte Observer, Kenneth R. Harney (12/11/2010)
Condos Face FHA Deadlines
An estimated 2,200 condominium projects nationwide last week lost their eligibility for Federal Housing Administration-guaranteed sales and refinancing.
Unless condo officials take action, another 23,000 residential condos with housing units numbering in the tens of thousands will lose their eligibility by spring. That means that buyers of units in these buildings won’t be eligible for FHA financing.
This situation was the result of an effort by the FHA to guarantee that condos and their underlying home owners associations have adequate budgets, legal documents, and other things that lead to financial stability.
In 2009, the FHA spelled out tough standards that required that condo projects approved for FHA financial before 2007 have their approvals renewed by Dec. 7, 2010. About 25,000 projects missed the cutoff. Because there were so many, the FHA extended the deadline, setting new deadlines through out 2011. The only losers were the 2,200 projects that had the oldest approvals.
The FHA urges all condominium owners to get in touch with their associations and push them to meet the revised deadlines.
For more information, or to check the status of a condo project, visit (select by state): https://entp.hud.gov/idapp/html/condlook.cfm
Source: Charlotte Observer, Kenneth R. Harney (12/11/2010)
Homeowners Recoup More with Exterior Replacement Projects, REALTORS® Report
Homeowners Recoup More with Exterior Replacement Projects, REALTORS® Report
Posted By susanne On December 15, 2010 @ 4:20 pm In Home Owner News,Home Value News,Homeowner's Toolkit,Luxury Real Estate,Real Estate,Real Estate Information,Real Estate News,Real Estate Trends,Today's Marketplace,Today's Top Story,Today's Top Story - Consumer | Comments Disabled
[1]RISMEDIA, December 16, 2010—As part of the 2010-11 Remodeling Cost vs. Value Report, REALTORS® recently rated exterior replacement projects among the most cost-effective home improvement projects, demonstrating that curb appeal remains one of the most important aspects of a home at resale time. “This year’s Remodeling Cost vs. Value Report highlights the importance of exterior projects, which not only provide the most value, but are also among the least expensive improvements for a home,” said National Association of REALTORS® President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I. “Since resale value can vary by region, it’s smart for homeowners to work with a REALTOR® through the remodeling and improvement process; they can provide insight into projects in their neighborhoods that will recoup the most when the owners are ready to sell.”
Nine of the top 10 most cost-effective projects nationally in terms of value recouped are exterior replacement projects. The steel entry door replacement remained the project that returned the most money, with an estimated 102.1% of cost recouped upon resale; it is also the only project in this year’s report that is expected to return more than the cost. The midrange garage door replacement, a new addition to the report this year, is expected to recoup 83.9% of costs. Both projects are small investments that cost little more than $1,200 each, on average. REALTORS® identified these two replacements as projects that can significantly improve a home’s curb appeal.
“Curb appeal remains king—it’s the first thing potential buyers notice when looking for a home, and it also demonstrates pride of ownership,” said Phipps.
The 2010-11 Remodeling Cost vs. Value Report compares construction costs with resale values for 35 midrange and upscale remodeling projects comprising additions, remodels and replacements in 80 markets across the country. Data are grouped in nine U.S. regions, following the divisions established by the U.S. Census Bureau. This is the 13th consecutive year that the report, which is produced by Remodeling magazine publisher Hanley Wood, LLC, was completed in cooperation with REALTOR® Magazine.
REALTORS® provided their insight into local markets and buyer home preferences within those markets. Overall, REALTORS® estimated that homeowners would recoup an average of 60% of their investment in 35 different improvement projects, down from an average of 63.8% last year. Remodeling projects, particularly higher cost upscale projects, have been losing resale value in recent years because of weak economic conditions.
According to the report, replacement projects usually outperform remodel and addition projects in resale value because they are among the least expensive and contribute to curb appeal. Various types of siding and window replacement projects were expected to return more than 70% of costs.
Upscale fiber-cement siding replacement was judged by REALTORS® as the most cost effective among siding projects, recouping 80% of costs. Among the window replacement projects covered, upscale vinyl window replacements were expected to recoup the most, 72.6% upon resale. Another exterior project, a wood deck addition, tied with a minor kitchen remodel for the fourth most profitable project recouping an estimated 72.8% of costs.
The top interior projects for resale value included an attic bedroom and a basement remodel. Both add living space without extending the footprint of the house. An attic bedroom addition costs more than $51,000 and recoups an estimated 72.2% nationally upon resale; a basement remodel costs more than $64,000 and recoups an estimated 70%. Improvement projects that are expected to return the least are a midrange home office remodel, recouping an estimated 45.8%; a backup power generator, recouping 48.5%; and a sunroom addition, recouping 48.6% of costs.
Although most regions followed the national trends, the regions that were consistently estimated to return a higher percentage of remodeling costs upon resale were the Pacific region of Alaska, California, Hawaii, Oregon and Washington; the West South Central region of Arkansas, Louisiana, Oklahoma, and Texas; the East South Central region of Alabama, Kentucky, Mississippi and Tennessee; and the South Atlantic region of the District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia and West Virginia.
The regions where REALTORS® generally reported the lowest percentage of costs recouped were New England (Connecticut, Massachusetts, Maine, New Hampshire, Rhode Island, and Vermont); East North Central (Illinois, Indiana, Michigan, Ohio and Wisconsin); West North Central (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota); and Middle Atlantic (New York and Pennsylvania).
“It’s important to remember that the resale value of a particular improvement project depends on several factors,” said Phipps. “Things such as the home’s overall condition, availability and condition of surrounding properties, location and the regional economic climate contribute to an estimated resale value. That’s why it is imperative to work with a REALTOR® who can provide insight and guidance into local market conditions whether you’re buying, selling or improving a home.”
Posted By susanne On December 15, 2010 @ 4:20 pm In Home Owner News,Home Value News,Homeowner's Toolkit,Luxury Real Estate,Real Estate,Real Estate Information,Real Estate News,Real Estate Trends,Today's Marketplace,Today's Top Story,Today's Top Story - Consumer | Comments Disabled
[1]RISMEDIA, December 16, 2010—As part of the 2010-11 Remodeling Cost vs. Value Report, REALTORS® recently rated exterior replacement projects among the most cost-effective home improvement projects, demonstrating that curb appeal remains one of the most important aspects of a home at resale time. “This year’s Remodeling Cost vs. Value Report highlights the importance of exterior projects, which not only provide the most value, but are also among the least expensive improvements for a home,” said National Association of REALTORS® President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I. “Since resale value can vary by region, it’s smart for homeowners to work with a REALTOR® through the remodeling and improvement process; they can provide insight into projects in their neighborhoods that will recoup the most when the owners are ready to sell.”
Nine of the top 10 most cost-effective projects nationally in terms of value recouped are exterior replacement projects. The steel entry door replacement remained the project that returned the most money, with an estimated 102.1% of cost recouped upon resale; it is also the only project in this year’s report that is expected to return more than the cost. The midrange garage door replacement, a new addition to the report this year, is expected to recoup 83.9% of costs. Both projects are small investments that cost little more than $1,200 each, on average. REALTORS® identified these two replacements as projects that can significantly improve a home’s curb appeal.
“Curb appeal remains king—it’s the first thing potential buyers notice when looking for a home, and it also demonstrates pride of ownership,” said Phipps.
The 2010-11 Remodeling Cost vs. Value Report compares construction costs with resale values for 35 midrange and upscale remodeling projects comprising additions, remodels and replacements in 80 markets across the country. Data are grouped in nine U.S. regions, following the divisions established by the U.S. Census Bureau. This is the 13th consecutive year that the report, which is produced by Remodeling magazine publisher Hanley Wood, LLC, was completed in cooperation with REALTOR® Magazine.
REALTORS® provided their insight into local markets and buyer home preferences within those markets. Overall, REALTORS® estimated that homeowners would recoup an average of 60% of their investment in 35 different improvement projects, down from an average of 63.8% last year. Remodeling projects, particularly higher cost upscale projects, have been losing resale value in recent years because of weak economic conditions.
According to the report, replacement projects usually outperform remodel and addition projects in resale value because they are among the least expensive and contribute to curb appeal. Various types of siding and window replacement projects were expected to return more than 70% of costs.
Upscale fiber-cement siding replacement was judged by REALTORS® as the most cost effective among siding projects, recouping 80% of costs. Among the window replacement projects covered, upscale vinyl window replacements were expected to recoup the most, 72.6% upon resale. Another exterior project, a wood deck addition, tied with a minor kitchen remodel for the fourth most profitable project recouping an estimated 72.8% of costs.
The top interior projects for resale value included an attic bedroom and a basement remodel. Both add living space without extending the footprint of the house. An attic bedroom addition costs more than $51,000 and recoups an estimated 72.2% nationally upon resale; a basement remodel costs more than $64,000 and recoups an estimated 70%. Improvement projects that are expected to return the least are a midrange home office remodel, recouping an estimated 45.8%; a backup power generator, recouping 48.5%; and a sunroom addition, recouping 48.6% of costs.
Although most regions followed the national trends, the regions that were consistently estimated to return a higher percentage of remodeling costs upon resale were the Pacific region of Alaska, California, Hawaii, Oregon and Washington; the West South Central region of Arkansas, Louisiana, Oklahoma, and Texas; the East South Central region of Alabama, Kentucky, Mississippi and Tennessee; and the South Atlantic region of the District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia and West Virginia.
The regions where REALTORS® generally reported the lowest percentage of costs recouped were New England (Connecticut, Massachusetts, Maine, New Hampshire, Rhode Island, and Vermont); East North Central (Illinois, Indiana, Michigan, Ohio and Wisconsin); West North Central (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota); and Middle Atlantic (New York and Pennsylvania).
“It’s important to remember that the resale value of a particular improvement project depends on several factors,” said Phipps. “Things such as the home’s overall condition, availability and condition of surrounding properties, location and the regional economic climate contribute to an estimated resale value. That’s why it is imperative to work with a REALTOR® who can provide insight and guidance into local market conditions whether you’re buying, selling or improving a home.”
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