Wednesday, December 30, 2009
Federal Home Buyer Tax Credit--Don't Miss Out!
Click here for details on how you can take advantage of the Home Buyer Tax Credit that has been extended through June 2010 and expanded to include people with higher incomes and some who want to trade up into new homes. If you have specific questions or would like more details, we invite you to contact our Mortgage Department or any one of our professional Sales Associates for assistance.
Tuesday, December 29, 2009
Home Sales Surge in Markets across the Country
RISMEDIA, December 28, 2009—(MCT)—November 2009 was a positive month for the real estate industry as home sales surged in a majority of markets across the country. Spurred by low prices and the extended and expanded home buyer tax credit, home sales were up in Las Vegas, Nevada; Ohio, the Midwest; and upstate New York, according to reports late last week. While other reports point to sales being down in California, home prices nationally were up—causing for a wave of optimism to be felt throughout the industry.
Read full story
Source: rismedia.com
Read full story
Source: rismedia.com
Friday, December 18, 2009
Has the Housing Industry Hit Bottom? As Demand Disappears, Builders Say 2009 Marks Housing’s Bottom
RISMEDIA, December 18, 2009—Despite significantly lower traffic and sales this month, Southern California retained pricing strength and the majority of surveyed builders expect revenues to increase in 2010, according to John Burns Real Estate Consulting’s December survey of home builders.
Read more
Source: www.rismedia.com
Read more
Source: www.rismedia.com
Wednesday, December 9, 2009
Your KEY to Home Ownership is Here!
Click here for details on how you can take advantage of the Home Buyer Tax Credit that has been extended through June 2010 and expanded to include people with higher incomes and some who want to trade up into new homes. Learn everything you need to know about the tax credit including: What types of homes will qualify? Who is eligible to claim the tax credit? What is the amount of the tax credit? If you have a unique situation and more specific questions, we encourage you to contact our Mortgage Department or any one of our professional Sales Associates for assistance.
Thursday, December 3, 2009
Rates on 30-year Mortgages Set New Record Low
U.S. mortgage rates dropped to a record low, smashing through a previous record set earlier this year, a closely watched mortgage survey showed Thursday. The lowest mortgage rates in decades and high affordability have also helped the hard-hit housing market find some footing this year after a three-year slump.
Read full article
Source: www.cnbc.com
Read full article
Source: www.cnbc.com
Tuesday, November 24, 2009
5 Tips to Buying a Home on Deadline and How the Tax Credit Extension Can Help
RISMEDIA, November 24, 2009—(MCT)—House shopping usually slows down in the winter, as people put their home searches on hold to trim the tree, buy presents to put under it and avoid the chilly weather. This winter, however, might be different, thanks to the extended—and expanded—first-time home-buyer tax credit.
Full story
Source: www.resmedia.com
Full story
Source: www.resmedia.com
Friday, November 20, 2009
Federal Home Buyer Tax Credit--Don't Miss Out!
Click here for details on how you can take advantage of the Home Buyer Tax Credit that has been extended through June 2010 and expanded to include people with higher incomes and some who want to trade up into new homes. If you have specific questions or would like more details, we invite you to contact our Mortgage Department or any one of our professional Sales Associates for assistance.
Tuesday, November 17, 2009
Sellers Gain Tiny Bit of Traction in September; Buyers Still Negotiating Thousands Off Home Prices
RISMEDIA, November 17, 2009—The negotiating power of homebuyers slipped a tad in September 2009, but buyers in most markets were still negotiating thousands of dollars off the last listing price of homes. Buyers nationally negotiated a median 2.9% off the final listing price, down from 3% in August 2009, according to the September Zillow Real Estate Market Reports.
Continued
Source: www.rismedia.com
Continued
Source: www.rismedia.com
Monday, November 9, 2009
Your Key to Home Ownership is Here!
Click here for details on how you can take advantage of the Home Buyer Tax Credit that has been extended through June 2010 and expanded to include people with higher incomes and some who want to trade up into new homes. Learn everything you need to know about the tax credit including: What types of homes will qualify? Who is eligible to claim the tax credit? What is the amount of the tax credit? If you have a unique situation and more specific questions, we encourage you to contact our Mortgage Department or any one of our professional Sales Associates for assistance.
Friday, November 6, 2009
$8,000 Homebuyers Tax Credit Extended
President Obama reups popular tax credit through June 2010 and expands it to include people with higher incomes and some who want to trade up into new homes.
NEW YORK (CNNMoney.com) -- President Obama signed an extension and expansion of the first-time homebuyers tax credit on Friday.
Full story
Source: money.cnn.com
NEW YORK (CNNMoney.com) -- President Obama signed an extension and expansion of the first-time homebuyers tax credit on Friday.
Full story
Source: money.cnn.com
Wednesday, November 4, 2009
What Impact Will Homebuyer Tax Credit Extension Have on Housing Industry?
RISMEDIA, November 4, 2009—(MCT)—Congress is a step closer to extending the $8,000 first-time homebuyer tax credit and offering a new credit to other types of buyers, but some analysts are downplaying the controversial stimulus’ effect on the housing market.
Full story
Source: www.rismedia.com
Full story
Source: www.rismedia.com
Friday, October 30, 2009
Breaking News: Senate Plans to Extend and Expand Tax Credit
RISMEDIA, October 30, 2009—(MCT/The Wall Street Journal)-The Senate has reached a compromise on extending and expanding the $8,000 tax credit for first-time home buyers, a boost the housing industry believes will help it pull out of its two-year-old downturn.
While its passage remains uncertain, the agreement would extend the existing credit for first-time homebuyers, worth up to $8,000, while offering a new credit of up to $6,500 for some existing homeowners, Senate aides said. The reduced credit would be available to all homebuyers who have been in their current residence for a consecutive five-year period in the past eight years. Lawmakers in Washington also raised the qualifying income limits to $125,000 for single taxpayers and $250,000 for joint taxpayers, from the current $75,000 and $150,000, housing-industry sources said. Under the Senate compromise, buyers must have sales agreements in hand by April 30, but they will have until June 30 to go to settlement, said the sources. The measure still faces votes in the full Senate and the House.
Full story
Source: www.rismedia.com
While its passage remains uncertain, the agreement would extend the existing credit for first-time homebuyers, worth up to $8,000, while offering a new credit of up to $6,500 for some existing homeowners, Senate aides said. The reduced credit would be available to all homebuyers who have been in their current residence for a consecutive five-year period in the past eight years. Lawmakers in Washington also raised the qualifying income limits to $125,000 for single taxpayers and $250,000 for joint taxpayers, from the current $75,000 and $150,000, housing-industry sources said. Under the Senate compromise, buyers must have sales agreements in hand by April 30, but they will have until June 30 to go to settlement, said the sources. The measure still faces votes in the full Senate and the House.
Full story
Source: www.rismedia.com
Wednesday, October 28, 2009
New Home Sales Fall in September for First Time in 6 Months
After five consecutive months of increases, sales of newly built, single-family homes fell 3.6% to a seasonally adjusted annual rate of 402,000 units in September 2009, according to data released by the U.S. Commerce Department.
Read full article
Source: www.rismedia.com
Read full article
Source: www.rismedia.com
Friday, October 23, 2009
Home Sales Rebound to Highest Level in 2 Years
NEW YORK (CNNMoney.com) -- Sales of existing homes rebounded sharply in September to their highest level in two years, getting a strong boost from first-time homebuyers, according to a report released Friday.
Sales of previously-owned homes jumped 9.4% in September after falling for the first time in four months in August, said the National Association of Realtors. Year over year, sales of existing homes were up 9.2% in September. "Much of the momentum is from people responding to the first-time buyer tax credit, which is freeing many sellers to make a trade and buy another home," said Lawrence Yun, NAR chief economist.
Read more
Source: money.cnn.com
Sales of previously-owned homes jumped 9.4% in September after falling for the first time in four months in August, said the National Association of Realtors. Year over year, sales of existing homes were up 9.2% in September. "Much of the momentum is from people responding to the first-time buyer tax credit, which is freeing many sellers to make a trade and buy another home," said Lawrence Yun, NAR chief economist.
Read more
Source: money.cnn.com
Monday, October 19, 2009
Your Key to Home Ownership
Click here for details on how you can take advantage of the 2009 Home Buyer Tax Credit to buy the home of your dreams. Learn everything you need to know about the tax credit including: What types of homes will qualify? Who is eligible to claim the tax credit? What is the amount of the tax credit? If you have a unique situation and more specific questions, we encourage you to contact our Mortgage Department or any one of our professional Sales Associates for assistance.
Friday, October 16, 2009
Economic Growth Expected to Slow in First Half of 2010 before Picking up in Second Half
RISMEDIA, October 16, 2009—MBA expects economic growth to continue through the rest of 2009 before slowing in the first half of 2010. Unemployment is expected to climb to 10.2% by the middle of 2010 before beginning to moderate as economic growth resumes sustained growth in the second half of the year.
More
Source: www.rismedia.com
More
Source: www.rismedia.com
Wednesday, October 14, 2009
Fed Believes Recovery Is Here
Minutes of Sept. 22-23 meeting show most members now believe recession is over-- even if they see modest growth, a weak job market and low wages going forward.
NEW YORK (CNNMoney.com) -- Most Federal Reserve policymakers believe that an economic recovery has started, although they view the turnaround as weak enough that some want the central bank to take additional steps to stimulate the economy, according to minutes of a meeting last month that were released Wednesday.
The minutes of the two-day meeting, concluded Sept. 23, were the most explicit statement yet that the Federal Open Market Committee now believes the recession that started in December 2007 is over. The committee comprises the group of Fed governors and district bank presidents who set interest rates and take other steps to spur or slow economic growth.
"Most thought an economic recovery was under way," the minutes stated. "Many participants noted that since August, they had revised up their projections for the second half of 2009 and for subsequent years."
Up to now, the Fed's statements have been more circumspect. Its statement , released at the end of the meeting, said simply that economic readings suggest "that economic activity has picked up following its severe downturn." This is the first time that Fed minutes explicitly said that most members believe the recession is over. However, in response to a question in an appearance at the Brookings Institution last month, Fed Chairman Ben Bernanke did say that the recession is "very likely over."
The decision on when a recession begins and ends is not up to the Federal Reserve, but instead the National Bureau of Economic Research. That group doesn't make any sort of declaration until months after the fact, in order to take into account final readings of various economic measures such as employment, income and industrial production. For example, the NBER didn't declare that the recent recession had begun in December 2007 until a full year after the fact.
There is a growing consensus among outside economists that the recession is over. A survey of top forecasters by the National Association for Business Economics earlier this month found 81% believe the economy is in recovery.
Still, there was debate at the Fed's September meeting about what to do next. There was broad agreement that the fed funds rate, the key rate used to pump money into the economy, should be kept near 0%, and that the statement should say "economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period." But some members wanted to increase the amount of mortgages the Fed will buy from the $1.25 trillion level that had been previously announced. The Fed is buying up those mortgages in an effort to keep mortgage rates low. At least one member wanted to instead cut the amount of mortgages purchased before reaching that level.
The members agreed that the job market is likely to stay weak for the foreseeable future -- and that is likely to keep wages from rising. But there was a "a range of views" among members about how soon inflation would reappear as a result of trillions that the Fed has pumped into the economy in the last year.
Bernard Baumohl, executive director of the Economic Outlook Group, said he thinks there is a "vigorous debate" going on right now within the Fed as to when it should take steps to pull out the money it has pumped into the economy. "If we're getting signs that the recession is over and recovery is gathering steam, the Fed is going to have to move very quickly to begin to withdrawal the stimulus, or else it will sow the seeds for inflation," he said.
Even with the debate about purchases of mortgages and the threat of inflation, there appears to be general agreement that the recovery is likely to be modest.
"Despite...positive factors, many participants noted that the economic recovery was likely to be quite restrained," according to the minutes.
source: money.cnn.com
NEW YORK (CNNMoney.com) -- Most Federal Reserve policymakers believe that an economic recovery has started, although they view the turnaround as weak enough that some want the central bank to take additional steps to stimulate the economy, according to minutes of a meeting last month that were released Wednesday.
The minutes of the two-day meeting, concluded Sept. 23, were the most explicit statement yet that the Federal Open Market Committee now believes the recession that started in December 2007 is over. The committee comprises the group of Fed governors and district bank presidents who set interest rates and take other steps to spur or slow economic growth.
"Most thought an economic recovery was under way," the minutes stated. "Many participants noted that since August, they had revised up their projections for the second half of 2009 and for subsequent years."
Up to now, the Fed's statements have been more circumspect. Its statement , released at the end of the meeting, said simply that economic readings suggest "that economic activity has picked up following its severe downturn." This is the first time that Fed minutes explicitly said that most members believe the recession is over. However, in response to a question in an appearance at the Brookings Institution last month, Fed Chairman Ben Bernanke did say that the recession is "very likely over."
The decision on when a recession begins and ends is not up to the Federal Reserve, but instead the National Bureau of Economic Research. That group doesn't make any sort of declaration until months after the fact, in order to take into account final readings of various economic measures such as employment, income and industrial production. For example, the NBER didn't declare that the recent recession had begun in December 2007 until a full year after the fact.
There is a growing consensus among outside economists that the recession is over. A survey of top forecasters by the National Association for Business Economics earlier this month found 81% believe the economy is in recovery.
Still, there was debate at the Fed's September meeting about what to do next. There was broad agreement that the fed funds rate, the key rate used to pump money into the economy, should be kept near 0%, and that the statement should say "economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period." But some members wanted to increase the amount of mortgages the Fed will buy from the $1.25 trillion level that had been previously announced. The Fed is buying up those mortgages in an effort to keep mortgage rates low. At least one member wanted to instead cut the amount of mortgages purchased before reaching that level.
The members agreed that the job market is likely to stay weak for the foreseeable future -- and that is likely to keep wages from rising. But there was a "a range of views" among members about how soon inflation would reappear as a result of trillions that the Fed has pumped into the economy in the last year.
Bernard Baumohl, executive director of the Economic Outlook Group, said he thinks there is a "vigorous debate" going on right now within the Fed as to when it should take steps to pull out the money it has pumped into the economy. "If we're getting signs that the recession is over and recovery is gathering steam, the Fed is going to have to move very quickly to begin to withdrawal the stimulus, or else it will sow the seeds for inflation," he said.
Even with the debate about purchases of mortgages and the threat of inflation, there appears to be general agreement that the recovery is likely to be modest.
"Despite...positive factors, many participants noted that the economic recovery was likely to be quite restrained," according to the minutes.
source: money.cnn.com
Friday, October 9, 2009
Some things to consider before you refinance
New FTC rules combined with low interest rates are boon for borrowers.
WASHINGTON - Don't look now but mortgage rates are really, really low — practically at record low levels. Homeowners who still have adequate equity might want to jump on this and refinance one more time. Or start using their home equity line again. Or switch to a fixed-rate loan. Or give up on their plans to pay off their home quickly and stretch it out as long as possible.
More
Source: www.msnbc.msn.com
WASHINGTON - Don't look now but mortgage rates are really, really low — practically at record low levels. Homeowners who still have adequate equity might want to jump on this and refinance one more time. Or start using their home equity line again. Or switch to a fixed-rate loan. Or give up on their plans to pay off their home quickly and stretch it out as long as possible.
More
Source: www.msnbc.msn.com
Tuesday, October 6, 2009
Builders Ready To Work With White House - Congress To Extend Home Buyer Tax Credit
October 6, 2009 - The National Association of Home Builders (NAHB) today commended the White House for recognizing the success of the $8,000 first-time home buyer tax credit and said that extending the program past its Dec. 1 expiration date will help to bolster the economy.
“The tax credit has clearly had a positive effect on housing demand and in the job market,” said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla. “We stand ready to work with President Obama and the Congress to extend and enhance the tax credit to help reduce foreclosures and excess housing inventories, to stabilize home values and to push housing and the economy on a glide path to recovery.”
NAHB estimates conservatively that approximately 200,000 additional home sales are attributable to the tax credit and that it has resulted in a net increase of 187,000 jobs. Extending the credit through Nov. 30, 2010 and making it available to all purchasers of a principal residence would result in an additional 383,000 home sales and generate 347,000 new jobs in the coming year.
White House Press Secretary Robert Gibbs said yesterday that “there has been quite a bit of success” with the home buyer tax credit. He added that President Obama is considering extending the tax credit to strengthen the economy and create jobs.
“Housing is the best opportunity to put this country back to work. Prompt congressional action on the tax credit is a crucial first step to shoring up the fragile housing recovery and leading the economy to higher ground,” said Robson.
source: www.nahb.com
“The tax credit has clearly had a positive effect on housing demand and in the job market,” said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla. “We stand ready to work with President Obama and the Congress to extend and enhance the tax credit to help reduce foreclosures and excess housing inventories, to stabilize home values and to push housing and the economy on a glide path to recovery.”
NAHB estimates conservatively that approximately 200,000 additional home sales are attributable to the tax credit and that it has resulted in a net increase of 187,000 jobs. Extending the credit through Nov. 30, 2010 and making it available to all purchasers of a principal residence would result in an additional 383,000 home sales and generate 347,000 new jobs in the coming year.
White House Press Secretary Robert Gibbs said yesterday that “there has been quite a bit of success” with the home buyer tax credit. He added that President Obama is considering extending the tax credit to strengthen the economy and create jobs.
“Housing is the best opportunity to put this country back to work. Prompt congressional action on the tax credit is a crucial first step to shoring up the fragile housing recovery and leading the economy to higher ground,” said Robson.
source: www.nahb.com
Thursday, October 1, 2009
Pending Home Sales jump 6.4 percent in August!
WASHINGTON - Aspiring homebuyers rushed to take advantage of a tax credit for first-time owners that expires in November, driving up the number of signed sales contracts for the seventh straight month in August.
Construction spending also rose unexpectedly in August on the biggest jump in housing activity in nearly 16 years, another sign the real estate market is recovering from its four-year slump, data Thursday showed.
Sales and homebuilding are being fueled by a tax-credit of up to $8,000, low mortgage rates and cheap foreclosures. In some of the most hard-hit areas, like Phoenix and Las Vegas, there are bidding wars for deeply discounted properties. And in all but a few cities, home prices are slowly starting to rise, reversing their three-year descent.
Read the entire article here.
Remember to visit Napier's Facebook page here, and our Twitter page here for the latest local real estate and mortgage industry news!
Construction spending also rose unexpectedly in August on the biggest jump in housing activity in nearly 16 years, another sign the real estate market is recovering from its four-year slump, data Thursday showed.
Sales and homebuilding are being fueled by a tax-credit of up to $8,000, low mortgage rates and cheap foreclosures. In some of the most hard-hit areas, like Phoenix and Las Vegas, there are bidding wars for deeply discounted properties. And in all but a few cities, home prices are slowly starting to rise, reversing their three-year descent.
Read the entire article here.
Remember to visit Napier's Facebook page here, and our Twitter page here for the latest local real estate and mortgage industry news!
Friday, September 25, 2009
Now is a Great Time to BUY and don't forget about the Federal Homebuyers Tax Credit!
Your Key to Home Ownership - Click here for details on how you can take advantage of the 2009 Home Buyer Tax Credit to buy the home of your dreams. Learn everything you need to know about the tax credit including: What types of homes will qualify? Who is eligible to claim the tax credit? What is the amount of the tax credit? If you have a unique situation and more specific questions, we encourage you to contact our Mortgage Department or any one of our professional Sales Associates for assistance.
Monday, September 21, 2009
Realogy Supports New Bi-Partisan Senate Bill to Extend First-Time Homebuyer Tax Credit for 6 Months
RISMEDIA, September 21, 2009—Realogy Corporation, a global provider of real estate and relocation services, announced its support of a bi-partisan Senate bill (S. 1678) recently introduced that would create a six-month extension of the $8,000 federal tax credit for first-time homebuyers and move the current expiration date forward to June 1, 2010.
“This is an important next step for maintaining positive momentum toward a recovery in the housing markets and the overall U.S. economy,” said Realogy President & CEO Richard A. Smith, who also serves as chair of the Business Roundtable’s Housing Working Group. “While we applaud this effort and support passage of this prudent and necessary legislation, we also want to make it clear that we will continue to work with Congress to broaden the scope of the credit."
“Specifically, Realogy supports expanding the existing first-time homebuyer tax credit to all homebuyers of a principal residence, increasing the size of the tax credit, and eliminating the existing income eligibility caps, all of which we believe are critical to the ‘move-up’ or repeat buyers who we expect will drive the essential second phase of a housing recovery."
“We believe that stimulating demand for housing – particularly in the repeat buyer or ‘move-up’ market – is the most effective way for Congress to truly accelerate a broader economic recovery,” said Smith.
The bill was introduced by U.S. Senator Benjamin L. Cardin (D-MD), along with Senators John Ensign (R-NV), Harry Reid (D-NV), Johnny Isakson (R-GA) and Debbie Stabenow (D-MI). The current tax credit provision for first-time homebuyers, passed as part of the American Recovery and Reinvestment Act, expires December 1, 2009. According to the most recent data from the Department of the Treasury, nearly 530,000Americans have applied for the tax cut to help them purchase their first home. About 40% of all homebuyers this year will be eligible for the tax credit.
Source: rismedia.com
“This is an important next step for maintaining positive momentum toward a recovery in the housing markets and the overall U.S. economy,” said Realogy President & CEO Richard A. Smith, who also serves as chair of the Business Roundtable’s Housing Working Group. “While we applaud this effort and support passage of this prudent and necessary legislation, we also want to make it clear that we will continue to work with Congress to broaden the scope of the credit."
“Specifically, Realogy supports expanding the existing first-time homebuyer tax credit to all homebuyers of a principal residence, increasing the size of the tax credit, and eliminating the existing income eligibility caps, all of which we believe are critical to the ‘move-up’ or repeat buyers who we expect will drive the essential second phase of a housing recovery."
“We believe that stimulating demand for housing – particularly in the repeat buyer or ‘move-up’ market – is the most effective way for Congress to truly accelerate a broader economic recovery,” said Smith.
The bill was introduced by U.S. Senator Benjamin L. Cardin (D-MD), along with Senators John Ensign (R-NV), Harry Reid (D-NV), Johnny Isakson (R-GA) and Debbie Stabenow (D-MI). The current tax credit provision for first-time homebuyers, passed as part of the American Recovery and Reinvestment Act, expires December 1, 2009. According to the most recent data from the Department of the Treasury, nearly 530,000Americans have applied for the tax cut to help them purchase their first home. About 40% of all homebuyers this year will be eligible for the tax credit.
Source: rismedia.com
Thursday, September 17, 2009
Customer Satisfaction Improves Significantly, Driven by Competition among Home Builders
RISMEDIA, September 17, 2009—As home builders compete for a limited pool of buyers, customer satisfaction with new-home builders and new-home quality have improved notably from 2008, according to the J.D. Power and Associates 2009 U.S. New-Home Builder Customer Satisfaction Study.
Overall customer satisfaction improved for a second consecutive year, averaging 811 on a 1,000-point scale in 2009, and up 32 points from 779 in 2008. Markets with the highest levels of overall satisfaction in 2009 include Orange/San Diego, Calif.; Sacramento, Calif.; Phoenix, Ariz.; Inland Empire, Calif.; and Tampa, Fla.. In addition, overall satisfaction has increased in 22 of the 23 individual markets that were also surveyed in 2008.
New-home quality has also increased notably to an average of 825 index points in 2009from 799 in 2008. The rate of customer-reported problems has decreased in 2009 to an average of 9.55 problems per home, from 11.51 problems per home in 2008. Problem rates have declined in each of the 23 markets that were also included in the study in 2008. Overall, the most commonly reported quality problems include issues with landscaping, heating and air conditioning problems and kitchen cabinet quality and finish.
“Fierce competition among home builders has led to a market where only the strongest companies have survived,” said Paula Sonkin, vice president of the real estate and construction industries practice at J.D. Power and Associates. “This is great news for new-home buyers—particularly first-time buyers—since builders are offering unprecedented high levels of quality, value and service at relatively low prices.”
The New-Home Builder Customer Satisfaction Study, now in its 13th year, includes satisfaction rankings for builders in 24 markets. Nine factors drive overall customer satisfaction with home builders: workmanship/materials; builder’s warranty/customer service staff; price/value; builder’s sales staff; construction manager; home readiness; recreational facilities provided by the builder; builder’s design center; and location.
The study found that the importance of the workmanship and materials factor has increased notably from 2008. Meanwhile, the builder’s sales staff, construction manager and home readiness factors have declined in importance.
“Compared with past years, fewer home buyers are spending large amounts of time working with construction managers or are concerned about home readiness, since many builders have large inventories of homes that are already complete at the point of purchase,” said Sonkin. “For home owners, this can make for a smoother, turnkey ownership experience, with fewer unanticipated delays.”
Source: rismedia.com
Overall customer satisfaction improved for a second consecutive year, averaging 811 on a 1,000-point scale in 2009, and up 32 points from 779 in 2008. Markets with the highest levels of overall satisfaction in 2009 include Orange/San Diego, Calif.; Sacramento, Calif.; Phoenix, Ariz.; Inland Empire, Calif.; and Tampa, Fla.. In addition, overall satisfaction has increased in 22 of the 23 individual markets that were also surveyed in 2008.
New-home quality has also increased notably to an average of 825 index points in 2009from 799 in 2008. The rate of customer-reported problems has decreased in 2009 to an average of 9.55 problems per home, from 11.51 problems per home in 2008. Problem rates have declined in each of the 23 markets that were also included in the study in 2008. Overall, the most commonly reported quality problems include issues with landscaping, heating and air conditioning problems and kitchen cabinet quality and finish.
“Fierce competition among home builders has led to a market where only the strongest companies have survived,” said Paula Sonkin, vice president of the real estate and construction industries practice at J.D. Power and Associates. “This is great news for new-home buyers—particularly first-time buyers—since builders are offering unprecedented high levels of quality, value and service at relatively low prices.”
The New-Home Builder Customer Satisfaction Study, now in its 13th year, includes satisfaction rankings for builders in 24 markets. Nine factors drive overall customer satisfaction with home builders: workmanship/materials; builder’s warranty/customer service staff; price/value; builder’s sales staff; construction manager; home readiness; recreational facilities provided by the builder; builder’s design center; and location.
The study found that the importance of the workmanship and materials factor has increased notably from 2008. Meanwhile, the builder’s sales staff, construction manager and home readiness factors have declined in importance.
“Compared with past years, fewer home buyers are spending large amounts of time working with construction managers or are concerned about home readiness, since many builders have large inventories of homes that are already complete at the point of purchase,” said Sonkin. “For home owners, this can make for a smoother, turnkey ownership experience, with fewer unanticipated delays.”
Source: rismedia.com
Tuesday, September 15, 2009
Taking Advantage of Negotiation – U.S. Homebuyers Paid $7,039 Less Than Listing Price in July
RISMEDIA, September 15, 2009—Amid continued falling home prices, U.S. homebuyers are negotiating even more discounts at the bargaining table, according to July’s Zillow Real Estate Market Reports. Buyers paid 3.3%, or a nearly $7,039, less than the last listing price on homes for sale during the month of July 2009. That is down slightly from 3.5%, or $7,630, in June, and substantially down from 4.6% ($10,260) in January.
Meanwhile, 22.8% of all homes listed for sale on Zillow had at least one listing price reduction as of Sept. 1, 2009. The median U.S. price reduction was 6.5% off the original listing price. Homes listed for sale on Zillow during August were listed for a median 96 days, up from 91 in July.
Florida homebuyers had the most negotiating power in July, with buyers in the Vero Beach metropolitan statistical area (MSA) paying 10.2%, or a median $23,500, less than the last listing price. Buyers in the Sarasota MSA paid 8.2% less than list price. The Naples, Daytona Beach, Miami-Fort Lauderdale, Panama City, Punta Gorda, Melbourne, Ocala, Tampa, Jacksonville, Port St. Lucie, Gainesville and Lakeland MSAs also ranked, in that order, in the top 25 markets for negotiation. There was less or no room for negotiation in some California markets that have been hard-hit by foreclosures. In the El Centro MSA, buyers paid 1.8%, or a median of $2,150, more than the listing price. In seven California markets- Sacramento, Merced, Modesto, Riverside, Stockton, Yuba City and Fresno- asking price and sale price were the same.
“The strong summer selling season in 2009 has led to a decreasing difference between the last listing price and final sale price, but most buyers are still getting some additional discount at selling time,” said Zillow Chief Economist Dr. Stan Humphries. “We expected list-to-sale price ratios to fall as the sales volume picked up during the summer, and the California markets are showing strong declines in the discount off the last listing price, relative to levels at the start of the year. This is fueled both by increased sales and high proportion of foreclosures re-sales, which are already priced relatively low."
“The fact that many Florida markets are still showing comparatively higher differences between the last listing price and final sale price suggests that inventory levels are still relatively high, keeping considerable downward pressure on prices and encouraging buyers to seek large discounts off the listing price. Overall, buyers are finding favorable conditions for negotiating prices, and now can be a good time to buy, provided homebuyers are financially prepared with healthy down payments and intend to stay in their home for a minimum of five to seven years."
Source: rismedia.com
Meanwhile, 22.8% of all homes listed for sale on Zillow had at least one listing price reduction as of Sept. 1, 2009. The median U.S. price reduction was 6.5% off the original listing price. Homes listed for sale on Zillow during August were listed for a median 96 days, up from 91 in July.
Florida homebuyers had the most negotiating power in July, with buyers in the Vero Beach metropolitan statistical area (MSA) paying 10.2%, or a median $23,500, less than the last listing price. Buyers in the Sarasota MSA paid 8.2% less than list price. The Naples, Daytona Beach, Miami-Fort Lauderdale, Panama City, Punta Gorda, Melbourne, Ocala, Tampa, Jacksonville, Port St. Lucie, Gainesville and Lakeland MSAs also ranked, in that order, in the top 25 markets for negotiation. There was less or no room for negotiation in some California markets that have been hard-hit by foreclosures. In the El Centro MSA, buyers paid 1.8%, or a median of $2,150, more than the listing price. In seven California markets- Sacramento, Merced, Modesto, Riverside, Stockton, Yuba City and Fresno- asking price and sale price were the same.
“The strong summer selling season in 2009 has led to a decreasing difference between the last listing price and final sale price, but most buyers are still getting some additional discount at selling time,” said Zillow Chief Economist Dr. Stan Humphries. “We expected list-to-sale price ratios to fall as the sales volume picked up during the summer, and the California markets are showing strong declines in the discount off the last listing price, relative to levels at the start of the year. This is fueled both by increased sales and high proportion of foreclosures re-sales, which are already priced relatively low."
“The fact that many Florida markets are still showing comparatively higher differences between the last listing price and final sale price suggests that inventory levels are still relatively high, keeping considerable downward pressure on prices and encouraging buyers to seek large discounts off the listing price. Overall, buyers are finding favorable conditions for negotiating prices, and now can be a good time to buy, provided homebuyers are financially prepared with healthy down payments and intend to stay in their home for a minimum of five to seven years."
Source: rismedia.com
Friday, September 11, 2009
Now is a Great Time to BUY and don't forget about the Federal Homebuyers Tax Credit!
Your Key to Home Ownership - Click here for details on how you can take advantage of the 2009 Home Buyer Tax Credit to buy the home of your dreams. Learn everything you need to know about the tax credit including: What types of homes will qualify? Who is eligible to claim the tax credit? What is the amount of the tax credit? If you have a unique situation and more specific questions, we encourage you to contact our Mortgage Department or any one of our professional Sales Associates for assistance.
Thursday, September 10, 2009
Take Charge: Is Your Credit and Debt Profile Optimized?
RISMEDIA, September 4, 2009—Whether you’re looking for ways to dig out of your financial hole or ways to avoid getting into one, the importance of actively managing your credit and debt profile has never been greater. Americans have become well-versed in asset management but not necessarily liability management. Until recently, easy access to credit has made our current generation feel immune to the real risks that overextending yourself on credit creates.
Fortunately, as a result of our current economic environment and hopefully going forward, it is apparent that consumers are beginning to spend more time and thought on the types of credit they have and how it is used. In parallel, banks and other creditors have begun to be much more restrictive about who gets approved for new credit and which consumers get the preferred interest rates and products. The reality is that consumers need to change their behaviors and adapt to the realities of the current environment and cannot wait for the market to change.
Here are some simple first steps to consider in liability management:
STEP 1: Understand How Credit Works–Now is not the time to be content with understanding 80% of what you need to know about your credit or saying, “I’ll get to it tomorrow because I don’t have time today.” Ninety-four percent of consumers are challenged with understanding the basics of how personal credit works to assure they have the best credit and debt profile possible. In most cases they build credit over a lifetime of “trial and error.” The constantly changing credit environment creates a situation whereby everyone can use a trained professional to help keep them educated.
STEP 2: Continually Evaluate and Monitor the Health of Your Current Credit Profile–The second step is to evaluate your current credit and debt profile and establish a plan based on your short- and long-term credit needs. Continually monitoring your credit report and profile is no different or less important today than getting a physical exam by your doctor.
STEP 3: Optimize Your Credit–Each of your debts should be periodically reviewed and analyzed. Are there options you can take to improve your overall credit profile so that you’re more desirable to creditors for their “preferred” interest rates? Should you consolidate some of your debt? Once you strengthen your credit and debt profile, do you have options on your home, auto and credit cards to negotiate lower interest rates and terms that would save you money monthly?
STEP 4: Rethink New Purchases–Excellent credit is like an insurance policy. When you need to use it you want to help ensure you qualify for the preferred interest rates and terms that will give you the best payment options based on your needs and capabilities. Maintaining your credit “insurance policy” is critical for special purchases like a home, car or major appliances when needed. Don’t wait until there’s an immediate need because your chance of making a material and impactful change in your profile overnight is very difficult.
Don’t let anyone mislead you. It takes time, knowledge and planning to assure you build, optimize and manage your personal credit and debt profile so that you can help maintain the affordability of what you have and/or create a better opportunity to qualify for preferred interest rates and terms on purchases requiring additional credit. Effective liability management all starts with the four steps above. There has never been a more important time to seek the help of a professional and personal credit coach to help ensure that your credit and debt profile is optimized not only today but on a continuing basis as well.
Jeff Mandel is president and Marlin Brandt is COO of ApprovalGUARD.
source: rismedia.com
Fortunately, as a result of our current economic environment and hopefully going forward, it is apparent that consumers are beginning to spend more time and thought on the types of credit they have and how it is used. In parallel, banks and other creditors have begun to be much more restrictive about who gets approved for new credit and which consumers get the preferred interest rates and products. The reality is that consumers need to change their behaviors and adapt to the realities of the current environment and cannot wait for the market to change.
Here are some simple first steps to consider in liability management:
STEP 1: Understand How Credit Works–Now is not the time to be content with understanding 80% of what you need to know about your credit or saying, “I’ll get to it tomorrow because I don’t have time today.” Ninety-four percent of consumers are challenged with understanding the basics of how personal credit works to assure they have the best credit and debt profile possible. In most cases they build credit over a lifetime of “trial and error.” The constantly changing credit environment creates a situation whereby everyone can use a trained professional to help keep them educated.
STEP 2: Continually Evaluate and Monitor the Health of Your Current Credit Profile–The second step is to evaluate your current credit and debt profile and establish a plan based on your short- and long-term credit needs. Continually monitoring your credit report and profile is no different or less important today than getting a physical exam by your doctor.
STEP 3: Optimize Your Credit–Each of your debts should be periodically reviewed and analyzed. Are there options you can take to improve your overall credit profile so that you’re more desirable to creditors for their “preferred” interest rates? Should you consolidate some of your debt? Once you strengthen your credit and debt profile, do you have options on your home, auto and credit cards to negotiate lower interest rates and terms that would save you money monthly?
STEP 4: Rethink New Purchases–Excellent credit is like an insurance policy. When you need to use it you want to help ensure you qualify for the preferred interest rates and terms that will give you the best payment options based on your needs and capabilities. Maintaining your credit “insurance policy” is critical for special purchases like a home, car or major appliances when needed. Don’t wait until there’s an immediate need because your chance of making a material and impactful change in your profile overnight is very difficult.
Don’t let anyone mislead you. It takes time, knowledge and planning to assure you build, optimize and manage your personal credit and debt profile so that you can help maintain the affordability of what you have and/or create a better opportunity to qualify for preferred interest rates and terms on purchases requiring additional credit. Effective liability management all starts with the four steps above. There has never been a more important time to seek the help of a professional and personal credit coach to help ensure that your credit and debt profile is optimized not only today but on a continuing basis as well.
Jeff Mandel is president and Marlin Brandt is COO of ApprovalGUARD.
source: rismedia.com
Friday, September 4, 2009
Pending Home Sales on a Roll, Up for Sixth Straight Month
RISMEDIA, September 2, 2009—Contract activity for pending home sales has risen for six straight months, a pattern not seen in the history of the index since it began in 2001, according to the National Association of Realtors®.
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in July, increased 3.2% to 97.6 from a reading of 94.6 in June, and is 12.0% higher than July 2008 when it was 87.1.The index is at the highest level since June 2007 when it was 100.7.
Lawrence Yun, NAR chief economist, said the housing market momentum has clearly turned for the better. “The recovery is broad-based across many parts of the country. Housing affordability has been at record highs this year with the added stimulus of a first-time buyer tax credit,” he said. “Other buyers are taking advantage of low home values before prices turn higher. Nationally, the typical mortgage payment now takes less than 25% of a middle-income family’s monthly income to buy a median priced home, with payment percentages so far in 2009 being the lowest on record dating back to 1970. As long as home buyers stay within their budget, mortgage payments will be very manageable,” Yun said.
NAR estimates that about 1.8 to 2.0 million first-time buyers will take advantage of the $8,000 tax credit this year, with approximately 350,000 additional sales that would not have taken place without the credit. Buyers have little time to act because they must complete the transaction by November 30, 2009 to qualify for the credit. Unless extended, contracts signed but not completed by that date will not be eligible- it is taking approximately two months to complete home sales in the current market.
The Pending Home Sales Index in the Northeast declined 3.0% to 78.8 in July but is 4.7% higher than July 2008. In the Midwest the index slipped 2.0% to 88.1 but is 8.1%above a year ago. In the South, pending home sales activity rose 3.1% to an index of 103.8 in July and is 12.0% above July 2008. In the West the index jumped 12.1% to 112.5 and is 20.0% above a year ago.
NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said Congress needs to keep the momentum going. “Even with a good recovery taking place, the market is not yet back to normal. With a gradual absorption of inventory, we are on the cusp of a general stabilization in home prices,” he said. “To ensure that housing has a broad stimulus to the overall economy and stays on sound footing, we’re encouraging Congress to extend the tax credit into 2010, and to expand it to all buyers of primary residences. The faster we stabilize home prices, the fewer families will face foreclosure and the quicker credit can be extended to other sectors of the economy,” McMillan said.
NAR’s Housing Affordability Index (HAI) stood at 158.5 in July, below the peak set in April but is still 36.0 percentage points higher than a year ago. The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income.
Yun expects existing-home sales to rise through the fourth quarter. “Unless the tax credit is extended, no one should be surprised to see home sales drop in the first quarter of next year,” he said. “However, the fundamentals of the housing market and the economy are trending up, and we expect home sales to generally pick up in the second quarter of 2010. The buyer psychology may be shifting from, ‘Why buy now when I can purchase later,’ to ‘I don’t want to miss out on a recovery.’”
Source: www.rismedia.com
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in July, increased 3.2% to 97.6 from a reading of 94.6 in June, and is 12.0% higher than July 2008 when it was 87.1.The index is at the highest level since June 2007 when it was 100.7.
Lawrence Yun, NAR chief economist, said the housing market momentum has clearly turned for the better. “The recovery is broad-based across many parts of the country. Housing affordability has been at record highs this year with the added stimulus of a first-time buyer tax credit,” he said. “Other buyers are taking advantage of low home values before prices turn higher. Nationally, the typical mortgage payment now takes less than 25% of a middle-income family’s monthly income to buy a median priced home, with payment percentages so far in 2009 being the lowest on record dating back to 1970. As long as home buyers stay within their budget, mortgage payments will be very manageable,” Yun said.
NAR estimates that about 1.8 to 2.0 million first-time buyers will take advantage of the $8,000 tax credit this year, with approximately 350,000 additional sales that would not have taken place without the credit. Buyers have little time to act because they must complete the transaction by November 30, 2009 to qualify for the credit. Unless extended, contracts signed but not completed by that date will not be eligible- it is taking approximately two months to complete home sales in the current market.
The Pending Home Sales Index in the Northeast declined 3.0% to 78.8 in July but is 4.7% higher than July 2008. In the Midwest the index slipped 2.0% to 88.1 but is 8.1%above a year ago. In the South, pending home sales activity rose 3.1% to an index of 103.8 in July and is 12.0% above July 2008. In the West the index jumped 12.1% to 112.5 and is 20.0% above a year ago.
NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said Congress needs to keep the momentum going. “Even with a good recovery taking place, the market is not yet back to normal. With a gradual absorption of inventory, we are on the cusp of a general stabilization in home prices,” he said. “To ensure that housing has a broad stimulus to the overall economy and stays on sound footing, we’re encouraging Congress to extend the tax credit into 2010, and to expand it to all buyers of primary residences. The faster we stabilize home prices, the fewer families will face foreclosure and the quicker credit can be extended to other sectors of the economy,” McMillan said.
NAR’s Housing Affordability Index (HAI) stood at 158.5 in July, below the peak set in April but is still 36.0 percentage points higher than a year ago. The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income.
Yun expects existing-home sales to rise through the fourth quarter. “Unless the tax credit is extended, no one should be surprised to see home sales drop in the first quarter of next year,” he said. “However, the fundamentals of the housing market and the economy are trending up, and we expect home sales to generally pick up in the second quarter of 2010. The buyer psychology may be shifting from, ‘Why buy now when I can purchase later,’ to ‘I don’t want to miss out on a recovery.’”
Source: www.rismedia.com
Tuesday, September 1, 2009
Existing homes selling fast - record fast!!
The volume of home re-sales has been on the upswing for four consecutive months.
NEW YORK (CNNMoney.com) -- Sales of existing homes rose in July for the fourth consecutive month, lending support to economists who argue a recovery is near.
Sales of previously owned single-family homes were up 7.2% compared with June and 5% from July 2008, The National Association of Realtors (NAR) reported Friday. The monthly gain was the largest on record for existing-home sales, which NAR has tracked since 1999. "The housing market has decisively turned for the better," said Lawrence Yun, NAR's chief economist. "A combination of first-time buyers taking advantage of the housing stimulus tax credit and greatly improved affordability conditions are contributing to higher sales."
July home sales hit an annualized rate of 5.24 million proprieties, marking the first breach of the 5 million annualized rate mark since last September, when they hit 5.1 million. Since then, they have stayed in a very narrow range, bouncing between between January's low of 4.49 million and October's high of 4.94 million. The July performance far exceeded expectations: A consensus of real estate experts had forecast sales of 5 million.
Low prices
Of course, homes should be selling. Prices have fallen more than 32% from their peaks, set in the summer of 2006. Plus, mortgage rates near historic lows makes the cost of purchasing a home lower than they've been in nearly 20 years. "In some recovering markets like San Diego, Las Vegas, Phoenix and Orlando, the demand for foreclosed and lower priced homes has spiked, and a lack of inventory is becoming a common complaint," Yun said.
Overall though, the national inventory rose by more than 7% to 4.09 million units. That will continue to keep prices low, according to Mike Larson, a housing analyst with Weiss Research. "There's a bifurcation of the market," he said. "There's excess supply putting downward pressure on prices and people respond to the lower prices by buying homes." Housing is its most affordable in many years, he pointed out. "Falling prices is not part of the problem, they're part of the solution," he said.
Hurting home sales have been stubborn increases in job losses. More than 6.7 million jobs have been lost since the beginning of 2008. That's one reason why Robert Dye, a senior economist for PNC Financial Services, is keeping his optimism in check. "I wouldn't go overboard on this number," he said. "The economy is still healing and will continue to run into some bumps. But it does bode very well for the future and shows buyer confidence is increasing."
Where homes are selling
Regionally, the strongest market was the Northeast, where sales soared by 13.4% to an annualized rate of 930,000. That was 3.3% higher than last July. The median price of homes sold during the month was $236,700, off 15% from last year.
Midwest sales rose 10.9% to a 1.22 million rate, 8% higher year-over-year. Prices there have sunk 5.9% over the past 12 months to a median of $157,200.
In the South, sales were up 7.1% from June and 5.4% from last July to a rate of 1.95 million. Price have dropped 7.1% to $164,500 over the past 12 months.
The only region reporting a slip in sales was the West, where they fell 1.7% to a rate of 1.13 million. That was ahead of last July, however, by 1.8%. The median price there was $202,300, a whopping 28% below what is was a year ago.
By Les Christie, CNNMoney.com staff writer
NEW YORK (CNNMoney.com) -- Sales of existing homes rose in July for the fourth consecutive month, lending support to economists who argue a recovery is near.
Sales of previously owned single-family homes were up 7.2% compared with June and 5% from July 2008, The National Association of Realtors (NAR) reported Friday. The monthly gain was the largest on record for existing-home sales, which NAR has tracked since 1999. "The housing market has decisively turned for the better," said Lawrence Yun, NAR's chief economist. "A combination of first-time buyers taking advantage of the housing stimulus tax credit and greatly improved affordability conditions are contributing to higher sales."
July home sales hit an annualized rate of 5.24 million proprieties, marking the first breach of the 5 million annualized rate mark since last September, when they hit 5.1 million. Since then, they have stayed in a very narrow range, bouncing between between January's low of 4.49 million and October's high of 4.94 million. The July performance far exceeded expectations: A consensus of real estate experts had forecast sales of 5 million.
Low prices
Of course, homes should be selling. Prices have fallen more than 32% from their peaks, set in the summer of 2006. Plus, mortgage rates near historic lows makes the cost of purchasing a home lower than they've been in nearly 20 years. "In some recovering markets like San Diego, Las Vegas, Phoenix and Orlando, the demand for foreclosed and lower priced homes has spiked, and a lack of inventory is becoming a common complaint," Yun said.
Overall though, the national inventory rose by more than 7% to 4.09 million units. That will continue to keep prices low, according to Mike Larson, a housing analyst with Weiss Research. "There's a bifurcation of the market," he said. "There's excess supply putting downward pressure on prices and people respond to the lower prices by buying homes." Housing is its most affordable in many years, he pointed out. "Falling prices is not part of the problem, they're part of the solution," he said.
Hurting home sales have been stubborn increases in job losses. More than 6.7 million jobs have been lost since the beginning of 2008. That's one reason why Robert Dye, a senior economist for PNC Financial Services, is keeping his optimism in check. "I wouldn't go overboard on this number," he said. "The economy is still healing and will continue to run into some bumps. But it does bode very well for the future and shows buyer confidence is increasing."
Where homes are selling
Regionally, the strongest market was the Northeast, where sales soared by 13.4% to an annualized rate of 930,000. That was 3.3% higher than last July. The median price of homes sold during the month was $236,700, off 15% from last year.
Midwest sales rose 10.9% to a 1.22 million rate, 8% higher year-over-year. Prices there have sunk 5.9% over the past 12 months to a median of $157,200.
In the South, sales were up 7.1% from June and 5.4% from last July to a rate of 1.95 million. Price have dropped 7.1% to $164,500 over the past 12 months.
The only region reporting a slip in sales was the West, where they fell 1.7% to a rate of 1.13 million. That was ahead of last July, however, by 1.8%. The median price there was $202,300, a whopping 28% below what is was a year ago.
By Les Christie, CNNMoney.com staff writer
Wednesday, August 26, 2009
How to say thanks--the gratitude campaign.
Are you exceedingly thankful for what our troops have done for all of us and for the many sacrifices they make everyday? Do you often wonder how to express your gratitude? Watch this video and share it with your friends and family.
http://www.youtube.com/watch?v=MSfFYxSdKdo
Created by Scott Truitt
http://www.youtube.com/watch?v=MSfFYxSdKdo
Created by Scott Truitt
Monday, August 24, 2009
Home resales surged in July
Home resales in July posted the largest monthly increase in at least 10 years as first-time buyers rushed to take advantage of a tax credit that expires Nov. 30.
Sales jumped 7.2 percent nationally and beat expectations, the National Association of Realtors said yesterday. "It is encouraging news," said Laura Lafayette, the chief executive officer of the Richmond Association of Realtors. "In the Richmond metro area, we were slower to see the dip in sales, so we are coming out of the trough later than some other markets. But we do seem to be headed in the right direction in the Richmond area."
The U.S. home-sales figure was the fourth-straight monthly increase and the strongest month since August 2007. Sales hit a seasonally adjusted annual rate of 5.24 million in July, from a pace of 4.89 million in June. Sales had been expected to rise to an annual pace of 5 million, according to economists surveyed by Thomson Reuters.
The risks to that healthy pace, however, are job cuts, mortgage rates and the looming end to the homebuyer tax credit. And the last one could be a doozy because first-time buyers are snapping up one out of every three homes.
First-time buyers get a credit of 10 percent of the purchase price of a home, up to $8,000. The credit phases out for singles earning more than $75,000 and couples earning more than $150,000. The real estate industry is lobbying to have the credit extended, but it's unclear whether Congress will be swayed.
The majority of sales transactions so far this year in the Richmond region have been those homes selling under $300,000, Lafayette said. Most appear to be first-time homebuyers.
"We need to see housing selling for over $300,000 as well as homes [selling for] under $300,000," she said. "When we see that, we know that we are definitely in a significant recovery mode. We are headed in the right direction. This will be a slow, steady climb. It not going to be a steep trajectory upward."
The results for the region and for Virginia are issued on a quarterly basis, not monthly.
Sales of foreclosures and other distressed properties made up about one-third of all transactions last month, down from nearly half earlier this year. Those sales helped drag down the national median sales price by 15 percent to $178,400.
Source: Richmond Times Dispatch
Published: August 22, 2009
Deputy Business Editor Gregory J. Gilligan contributed to this report.
Sales jumped 7.2 percent nationally and beat expectations, the National Association of Realtors said yesterday. "It is encouraging news," said Laura Lafayette, the chief executive officer of the Richmond Association of Realtors. "In the Richmond metro area, we were slower to see the dip in sales, so we are coming out of the trough later than some other markets. But we do seem to be headed in the right direction in the Richmond area."
The U.S. home-sales figure was the fourth-straight monthly increase and the strongest month since August 2007. Sales hit a seasonally adjusted annual rate of 5.24 million in July, from a pace of 4.89 million in June. Sales had been expected to rise to an annual pace of 5 million, according to economists surveyed by Thomson Reuters.
The risks to that healthy pace, however, are job cuts, mortgage rates and the looming end to the homebuyer tax credit. And the last one could be a doozy because first-time buyers are snapping up one out of every three homes.
First-time buyers get a credit of 10 percent of the purchase price of a home, up to $8,000. The credit phases out for singles earning more than $75,000 and couples earning more than $150,000. The real estate industry is lobbying to have the credit extended, but it's unclear whether Congress will be swayed.
The majority of sales transactions so far this year in the Richmond region have been those homes selling under $300,000, Lafayette said. Most appear to be first-time homebuyers.
"We need to see housing selling for over $300,000 as well as homes [selling for] under $300,000," she said. "When we see that, we know that we are definitely in a significant recovery mode. We are headed in the right direction. This will be a slow, steady climb. It not going to be a steep trajectory upward."
The results for the region and for Virginia are issued on a quarterly basis, not monthly.
Sales of foreclosures and other distressed properties made up about one-third of all transactions last month, down from nearly half earlier this year. Those sales helped drag down the national median sales price by 15 percent to $178,400.
Source: Richmond Times Dispatch
Published: August 22, 2009
Deputy Business Editor Gregory J. Gilligan contributed to this report.
Thursday, August 20, 2009
Market Issues: Rock, Paper, Scissors…Which Bills Should I Pay This Month?
RISMEDIA, August 13, 2009-As our economy continues to stagnate, more and more Americans are faced with the challenge of picking which bill(s) they should pay or not pay because they just don’t have enough money to cover them all. The question often revolves around which bill(s) is the most important to pay “now:” their mortgage/rent, car payment, utility bills, cable bill or credit cards? Although this seems like a fairly straightforward answer, for many Americans, it’s not as black and white as you would think.
Many different things impact these decisions, such as necessity, amount of money owed and perceived consequences of not paying. Intuitively, paying your mortgage/rent and car payment first seems like the easy answer. However, many Americans are faced with the dilemma that the value of their homes and cars are currently less than the amounts they owe. As a result, many believe they have no alternative but to turn the keys over and walk away.
We believe it’s important that consumers are fully educated, prior to making these decisions, regarding the impact these decisions may have on their credit profile in both the short- and long-term. All too often, an uninformed decision can result in a worse-than-expected result and a negative impact to their credit score.
There may be several steps a family can take to tighten their belt while strategically considering the best options that meet their needs and have the least negative credit score impact. In many cases, it all starts with making a list of their debts as they are today and then building a plan. Each debt is reviewed to identify any and all options for reducing the monthly payment (interest rate change, term change, debt consolidation, selling of respective asset, etc). Several reputable services offer a personal coach and online tools to help consumers with tips on building their plan. It takes a little work, but when it’s all done, it is typically well worth the time and effort.
In the majority of foreclosures/defaults occurring across the United States, one of borrowers’ biggest mistakes is that they never contacted their lender. Home loans typically have the biggest overall impact on credit scores. If a consumer is struggling to maintain their house payment, the first steps should be to:
1) Contact their home loan servicer or lender
2) Explain their challenge
3) Ask them to assist with finding any available solutions
Home interest rates are at their lowest point in years and, for some homeowners, simply refinancing their first and/or second mortgage will be the best option. However, lenders have more options at their disposal today than ever, including HASP (the Homeowners Affordability and Stability Plan), so there are multiple ways they can help consumers in lieu of foreclosing.
Regardless of their personal situation, each individual has an opportunity to take the guesswork out of the process and then begin to understand their options to more effectively manage their credit and debt. The key to the process is to become proactive because the importance of building a plan to evaluate and optimize your existing debt and credit has never been greater. The good news is that options and services exist to help you weather this storm.
Source: www.rismedia.com
Many different things impact these decisions, such as necessity, amount of money owed and perceived consequences of not paying. Intuitively, paying your mortgage/rent and car payment first seems like the easy answer. However, many Americans are faced with the dilemma that the value of their homes and cars are currently less than the amounts they owe. As a result, many believe they have no alternative but to turn the keys over and walk away.
We believe it’s important that consumers are fully educated, prior to making these decisions, regarding the impact these decisions may have on their credit profile in both the short- and long-term. All too often, an uninformed decision can result in a worse-than-expected result and a negative impact to their credit score.
There may be several steps a family can take to tighten their belt while strategically considering the best options that meet their needs and have the least negative credit score impact. In many cases, it all starts with making a list of their debts as they are today and then building a plan. Each debt is reviewed to identify any and all options for reducing the monthly payment (interest rate change, term change, debt consolidation, selling of respective asset, etc). Several reputable services offer a personal coach and online tools to help consumers with tips on building their plan. It takes a little work, but when it’s all done, it is typically well worth the time and effort.
In the majority of foreclosures/defaults occurring across the United States, one of borrowers’ biggest mistakes is that they never contacted their lender. Home loans typically have the biggest overall impact on credit scores. If a consumer is struggling to maintain their house payment, the first steps should be to:
1) Contact their home loan servicer or lender
2) Explain their challenge
3) Ask them to assist with finding any available solutions
Home interest rates are at their lowest point in years and, for some homeowners, simply refinancing their first and/or second mortgage will be the best option. However, lenders have more options at their disposal today than ever, including HASP (the Homeowners Affordability and Stability Plan), so there are multiple ways they can help consumers in lieu of foreclosing.
Regardless of their personal situation, each individual has an opportunity to take the guesswork out of the process and then begin to understand their options to more effectively manage their credit and debt. The key to the process is to become proactive because the importance of building a plan to evaluate and optimize your existing debt and credit has never been greater. The good news is that options and services exist to help you weather this storm.
Source: www.rismedia.com
Tuesday, August 18, 2009
Refinancing Borrowers Choose Shorter-Term Fixed-Rate Loans
RISMEDIA, August 18, 2009-Freddie Mac recently announced that in the second quarter of 2009, refinancing borrowers overwhelmingly chose fixed-rate loans, regardless of whether their original loan was an adjustable-rate mortgage (ARM) or fixed.
Ninety-nine percent of prime borrowers who originally had a conforming ARM selected a new conforming fixed-rate mortgage when they refinanced, up slightly from a revised share of 98% in the first quarter. While 30-year fixed-rate mortgages tended to be the preferred new product, 15-year fixed-rate mortgages gained favor among refinancers, with roughly a 2 percentage point increase in the proportion choosing this product for original ARM borrowers and nearly a 4 percentage point increase among original fixed-rate borrowers.
“When interest rates hit very low levels for fixed-rate mortgages, borrowers often take this opportunity to lower their interest rate and shorten their loan term,” said Frank Nothaft, vice president and chief economist for Freddie Mac.
“In April, mortgage rates reached new lows for both 15-year and 30-year fixed-rate loans in Freddie Mac’s Primary Mortgage Market Survey®. Many borrowers could shorten their loan terms without having a big increase in their mortgage payments, thereby building equity faster, reducing the total interest paid over the life of the loan, and ensuring their loan is largely paid off by their retirement.
“Both refinancing borrowers and families buying homes are shying away from ARMs in the current environment. During the second quarter, 5/1 hybrid ARMs carried an average rate of 4.9 percent while 30-year fixed mortgage rates were only at 5.0 percent on average in our survey. The small benefit from the lower rate is not enticing enough to cover the risk that rates will rise in the future from these historic lows.”
These estimates come from a sample of properties on which Freddie Mac has funded at least two successive loans and the latest loan is for refinance rather than for home purchase.
Article from RISMedia: http://rismedia.com
Ninety-nine percent of prime borrowers who originally had a conforming ARM selected a new conforming fixed-rate mortgage when they refinanced, up slightly from a revised share of 98% in the first quarter. While 30-year fixed-rate mortgages tended to be the preferred new product, 15-year fixed-rate mortgages gained favor among refinancers, with roughly a 2 percentage point increase in the proportion choosing this product for original ARM borrowers and nearly a 4 percentage point increase among original fixed-rate borrowers.
“When interest rates hit very low levels for fixed-rate mortgages, borrowers often take this opportunity to lower their interest rate and shorten their loan term,” said Frank Nothaft, vice president and chief economist for Freddie Mac.
“In April, mortgage rates reached new lows for both 15-year and 30-year fixed-rate loans in Freddie Mac’s Primary Mortgage Market Survey®. Many borrowers could shorten their loan terms without having a big increase in their mortgage payments, thereby building equity faster, reducing the total interest paid over the life of the loan, and ensuring their loan is largely paid off by their retirement.
“Both refinancing borrowers and families buying homes are shying away from ARMs in the current environment. During the second quarter, 5/1 hybrid ARMs carried an average rate of 4.9 percent while 30-year fixed mortgage rates were only at 5.0 percent on average in our survey. The small benefit from the lower rate is not enticing enough to cover the risk that rates will rise in the future from these historic lows.”
These estimates come from a sample of properties on which Freddie Mac has funded at least two successive loans and the latest loan is for refinance rather than for home purchase.
Article from RISMedia: http://rismedia.com
Thursday, August 13, 2009
Builders Call On Congress To Extend And Enhance Home Buyer Tax Credit
August 10, 2009 - To help create jobs and set the stage for a strong recovery, the National Association of Home Builders (NAHB) today called on Congress to extend and enhance the $8,000 first-time home buyer tax credit due to expire on December 1.
Specifically, NAHB is asking Congress to extend the home buyer tax credit program through November 30, 2010 and make it available to all buyers of principal residences.
“If Congress acts to extend the tax credit program, it would spur 383,000 additional home sales, including 80,000 housing starts, creating nearly 350,000 jobs over the coming year,” said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla. “That’s good for the economy and good for America.”
Although there have been some signs of economic stabilization in recent weeks, the unemployment rate is rapidly approaching double-digits. Without a concerted focus on the housing sector, which comprises more than 15 percent of the GDP, any hope for a recovery could fade.
“At best, it looks like a jobless recovery once it gets underway,” said Robson. “This is why Congress needs to take bold, meaningful action now.”
In addition to extending the tax credit, Robson said home builders will be meeting with their lawmakers in their home districts during the August congressional recess and urging them to:
- Correct a faulty appraisal process. The inappropriate use of distressed and foreclosed sales as comps in determining home values is hurting home values and killing home sales. The situation is so bad that a recent NAHB survey of more than 500 builders found that one out of every four new-home sales are lost because appraisals are coming in below the contract sales price. NAHB is urging Congress to work with housing and federal regulators to adopt and enforce clear, concise regulatory guidance that will allow appraisers to develop realistic valuations based on sales that are truly comparable. Lawmakers should also call on the Federal Housing Administration, the Federal Housing Finance Agency, Fannie Mae, and Freddie Mac to establish an appeals process similar to the one used by the Veterans Affairs Loan Guaranty Program. Under the VA program, the appraiser is required to seek more information when it appears the appraised value will fall short of the sales price.
- Improve housing credit conditions. Since there can be no meaningful economic recovery until the flow of credit is restored to housing, NAHB is calling on Congress to urge regulators and the banking industry to end the stranglehold on acquisition, development and construction (AD&C) loans that has emerged as a major impediment to the housing recovery. Lenders are refusing loans for viable new housing projects and cutting off funding or calling performing outstanding loans, producing unnecessary foreclosures and losses on AD&C loans. Congress needs to urge regulators to allow and encourage lenders to give leeway to residential AD&C borrowers who have loans in good standing by providing flexibility on re-appraisals, loan modifications and perhaps forbearance to give builders time to complete and sell their lots and homes.
- Co-sponsor Net Operating Loss (NOL) relief legislation in the House and Senate. NOL bills H.R. 2452 in the House and S. 823 in the Senate would prevent further layoffs in building and other industries hit hard by the recession. The legislation would help all businesses by eliminating the current $15 million cap on average annual gross receipts and allowing 2009 losses to be eligible for the expanded carryback. In addition, the bills would also help taxpayers who have been hit by the Alternative Minimum Tax to fully benefit from any NOL carryback. The bills both enjoy bipartisan support. Currently, H.R. 2452 and S. 823 have 92 and 37 co-sponsors, respectively.
Taken together, these four issues – extending the $8,000 home buyer tax credit for one year and making it eligible for all home buyers; bringing common sense to the appraisal process; urging banking regulators to ease AD&C credit; and passing the NOL carryback legislation – will not only create needed jobs for American workers quickly, but also stimulate demand for goods and services throughout Main Street America.
Source: nahb.org
Specifically, NAHB is asking Congress to extend the home buyer tax credit program through November 30, 2010 and make it available to all buyers of principal residences.
“If Congress acts to extend the tax credit program, it would spur 383,000 additional home sales, including 80,000 housing starts, creating nearly 350,000 jobs over the coming year,” said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla. “That’s good for the economy and good for America.”
Although there have been some signs of economic stabilization in recent weeks, the unemployment rate is rapidly approaching double-digits. Without a concerted focus on the housing sector, which comprises more than 15 percent of the GDP, any hope for a recovery could fade.
“At best, it looks like a jobless recovery once it gets underway,” said Robson. “This is why Congress needs to take bold, meaningful action now.”
In addition to extending the tax credit, Robson said home builders will be meeting with their lawmakers in their home districts during the August congressional recess and urging them to:
- Correct a faulty appraisal process. The inappropriate use of distressed and foreclosed sales as comps in determining home values is hurting home values and killing home sales. The situation is so bad that a recent NAHB survey of more than 500 builders found that one out of every four new-home sales are lost because appraisals are coming in below the contract sales price. NAHB is urging Congress to work with housing and federal regulators to adopt and enforce clear, concise regulatory guidance that will allow appraisers to develop realistic valuations based on sales that are truly comparable. Lawmakers should also call on the Federal Housing Administration, the Federal Housing Finance Agency, Fannie Mae, and Freddie Mac to establish an appeals process similar to the one used by the Veterans Affairs Loan Guaranty Program. Under the VA program, the appraiser is required to seek more information when it appears the appraised value will fall short of the sales price.
- Improve housing credit conditions. Since there can be no meaningful economic recovery until the flow of credit is restored to housing, NAHB is calling on Congress to urge regulators and the banking industry to end the stranglehold on acquisition, development and construction (AD&C) loans that has emerged as a major impediment to the housing recovery. Lenders are refusing loans for viable new housing projects and cutting off funding or calling performing outstanding loans, producing unnecessary foreclosures and losses on AD&C loans. Congress needs to urge regulators to allow and encourage lenders to give leeway to residential AD&C borrowers who have loans in good standing by providing flexibility on re-appraisals, loan modifications and perhaps forbearance to give builders time to complete and sell their lots and homes.
- Co-sponsor Net Operating Loss (NOL) relief legislation in the House and Senate. NOL bills H.R. 2452 in the House and S. 823 in the Senate would prevent further layoffs in building and other industries hit hard by the recession. The legislation would help all businesses by eliminating the current $15 million cap on average annual gross receipts and allowing 2009 losses to be eligible for the expanded carryback. In addition, the bills would also help taxpayers who have been hit by the Alternative Minimum Tax to fully benefit from any NOL carryback. The bills both enjoy bipartisan support. Currently, H.R. 2452 and S. 823 have 92 and 37 co-sponsors, respectively.
Taken together, these four issues – extending the $8,000 home buyer tax credit for one year and making it eligible for all home buyers; bringing common sense to the appraisal process; urging banking regulators to ease AD&C credit; and passing the NOL carryback legislation – will not only create needed jobs for American workers quickly, but also stimulate demand for goods and services throughout Main Street America.
Source: nahb.org
Thursday, August 6, 2009
New Home Sales Rise 11 Percent In June
July 27, 2009 - Sales of newly built, single-family homes rose 11 percent in June to a seasonally adjusted annual rate of 384,000 units, according to U.S. Commerce Department numbers released today. Coming on the heels of an upwardly revised number for May, the gain marks a third consecutive month of improved sales activity.
“Today’s report is good news that indicates the nation’s housing market may be in the process of turning the corner,” said Joe Robson, chairman of the National Association of Home Builders (NAHB) and a home builder from Tulsa, Okla. “That said, the key to moving us out of recession is to get Americans back to work. Congress and the Administration should know that housing can be a significant generator of good jobs. We need to make housing a priority in the recovery process, otherwise we could continue to bounce along a bottom for some time.”
“The big gain in home sales last month was reflected in three out of four regions and helped shrink the inventory of new homes for sale to its lowest level in years,” said NAHB Chief Economist David Crowe. “Even so, the pace of home sales in June 2009 was still more than 21 percent off the pace of sales in the same month last year, so we still have quite a way to go. The concern now is that complicating factors – particularly job losses, appraisal issues that are torpedoing more than a quarter of new-home sales, and the impending expiration of the first-time buyer tax credit – threaten to stifle the positive momentum.”
The number of newly built homes on the market declined for a 26th consecutive month in June, falling 4.1 percent to 281,000 units. This marks a relatively thin 8.8-month supply at the current sales pace.
New-home sales rose by double-digits in the Northeast (29.2 percent), Midwest (43.1 percent), and West (22.6 percent) in June. Meanwhile, sales activity declined 5.3 percent in the South, which is the country’s largest housing market.
News Article issued by National Association of Realtors www.nahb.org
“Today’s report is good news that indicates the nation’s housing market may be in the process of turning the corner,” said Joe Robson, chairman of the National Association of Home Builders (NAHB) and a home builder from Tulsa, Okla. “That said, the key to moving us out of recession is to get Americans back to work. Congress and the Administration should know that housing can be a significant generator of good jobs. We need to make housing a priority in the recovery process, otherwise we could continue to bounce along a bottom for some time.”
“The big gain in home sales last month was reflected in three out of four regions and helped shrink the inventory of new homes for sale to its lowest level in years,” said NAHB Chief Economist David Crowe. “Even so, the pace of home sales in June 2009 was still more than 21 percent off the pace of sales in the same month last year, so we still have quite a way to go. The concern now is that complicating factors – particularly job losses, appraisal issues that are torpedoing more than a quarter of new-home sales, and the impending expiration of the first-time buyer tax credit – threaten to stifle the positive momentum.”
The number of newly built homes on the market declined for a 26th consecutive month in June, falling 4.1 percent to 281,000 units. This marks a relatively thin 8.8-month supply at the current sales pace.
New-home sales rose by double-digits in the Northeast (29.2 percent), Midwest (43.1 percent), and West (22.6 percent) in June. Meanwhile, sales activity declined 5.3 percent in the South, which is the country’s largest housing market.
News Article issued by National Association of Realtors www.nahb.org
Friday, July 24, 2009
Housing Starts and Permits Up Strongly In June
July 17, 2009 - Nationwide housing starts and permits posted substantial gains in June as home builders responded to improved market conditions and the impending expiration of the first-time buyer tax credit, according to data released by the U.S. Commerce Department today. Commerce reported a 3.6 percent gain in overall housing starts to a seasonally adjusted annual rate of 582,000 units and an 8.7 percent gain in permit issuance to 563,000 units.
“The upcoming expiration of the first-time home buyer tax credit on December 1st is encouraging some builders to get homes started now so that they can be completed in time for clients to take advantage of this attractive buying incentive,” said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla. “However, there is still much concern about the difficulty of financing new-home production and continuing weakness in the job market.”
“Today’s report was in keeping with our forecasts for some glimmers of improvement on the single-family side in the second quarter, and also with the results of our latest builder surveys,” said NAHB Chief Economist David Crowe. “Many remain very cautious, however, in the face of the severe tightening of credit for acquisition, development and construction financing and increased instances of low appraisals tied to improper use of distressed properties as comps, both of which threaten to derail a housing and economic recovery going forward.”
Single-family housing starts rose for a fourth consecutive month in June, posting a 14.4 percent gain to a seasonally adjusted annual rate of 470,000 units, while single-family permits rose for a third consecutive month, posting a 5.9 percent gain to 430,000 units. Meanwhile, the multifamily side, which characteristically displays greater month-to-month volatility, posted a 25.8 percent decline in starts following an unsustainably large gain in the previous month, to 112,000 units. Multifamily permits rose 18.8 percent to 133,000 units from an abnormal low in May.
Regionally, housing starts were mixed, with the Northeast and Midwest posting big gains of 28.6 percent and 33.3 percent, respectively, and the South and West posting declines of 1.4 percent and 14.8 percent, respectively. However, the declines in both the South and West were entirely driven by dips in multifamily production.
Permit issuance was up across the board in June, with the Northeast posting a 5.4 percent gain, the Midwest a 3.4 percent gain, the South a nearly 14 percent gain and the West a nearly 2 percent gain.
Article published by National Association of Realtors at www.nahb.org
“The upcoming expiration of the first-time home buyer tax credit on December 1st is encouraging some builders to get homes started now so that they can be completed in time for clients to take advantage of this attractive buying incentive,” said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla. “However, there is still much concern about the difficulty of financing new-home production and continuing weakness in the job market.”
“Today’s report was in keeping with our forecasts for some glimmers of improvement on the single-family side in the second quarter, and also with the results of our latest builder surveys,” said NAHB Chief Economist David Crowe. “Many remain very cautious, however, in the face of the severe tightening of credit for acquisition, development and construction financing and increased instances of low appraisals tied to improper use of distressed properties as comps, both of which threaten to derail a housing and economic recovery going forward.”
Single-family housing starts rose for a fourth consecutive month in June, posting a 14.4 percent gain to a seasonally adjusted annual rate of 470,000 units, while single-family permits rose for a third consecutive month, posting a 5.9 percent gain to 430,000 units. Meanwhile, the multifamily side, which characteristically displays greater month-to-month volatility, posted a 25.8 percent decline in starts following an unsustainably large gain in the previous month, to 112,000 units. Multifamily permits rose 18.8 percent to 133,000 units from an abnormal low in May.
Regionally, housing starts were mixed, with the Northeast and Midwest posting big gains of 28.6 percent and 33.3 percent, respectively, and the South and West posting declines of 1.4 percent and 14.8 percent, respectively. However, the declines in both the South and West were entirely driven by dips in multifamily production.
Permit issuance was up across the board in June, with the Northeast posting a 5.4 percent gain, the Midwest a 3.4 percent gain, the South a nearly 14 percent gain and the West a nearly 2 percent gain.
Article published by National Association of Realtors at www.nahb.org
Tuesday, July 21, 2009
Greater Richmond Incentives Summary
- Infrastructure improvement incentives including road access, utility extensions and connection costs, and off-site improvements will be negotiated by individual localities.
- Enterprise Zones in Chesterfield, Henrico and the City of Richmond offer local tax and financing incentives in addition to the state’s Enterprise Zone incentives.
- Foreign Trade Zone #207 at Richmond International Airport provides space for storage, distribution, and light assembly operations. Imported goods held in the zone are not subject to U.S. Customs duties until they leave the zone and enter the U.S. for domestic consumption. Duties are not paid on broken or wasted product or on items that are exported.
- Financing for small businesses is available through the James River Development Corporation, the Crater Development Company, and REDC Community Capital Group Inc.
- Dominion Virginia Power offers a variety of rate options that may lower operating costs for commercial and industrial users.
Article from the July newsletter of The Greater Richmond Partnership, Inc.
Wednesday, July 15, 2009
Richmond Rates Sixth for Starting Over
The Richmond, Virginia, metro area is rated the nation’s "Sixth Best Place to Start Over”, based on a Manpower survey of companies’ hiring plans.
Companies planning to hire in next quarter: 22%
Best job prospects: Construction, Durable Goods Manufacturing, Nondurable Goods Manufacturing, Transportation & Utilities, Wholesale & Retail Trade, Information, Professional & Business Services, Education & Health Services, Leisure & Hospitality, Other Services
Population: 192,913
Average home price in January: $167,185
Unemployment rate: 7.8%
Richmond has a diverse economy, which includes chemical, food, and tobacco manufacturing, biotech, high-tech fibers, and semiconductors. For those who want to start over with a job in the arts, it has a symphony, ballet, art galleries, and theater companies.
Article from the July newsletter of The Greater Richmond Partnership, Inc.
Companies planning to hire in next quarter: 22%
Best job prospects: Construction, Durable Goods Manufacturing, Nondurable Goods Manufacturing, Transportation & Utilities, Wholesale & Retail Trade, Information, Professional & Business Services, Education & Health Services, Leisure & Hospitality, Other Services
Population: 192,913
Average home price in January: $167,185
Unemployment rate: 7.8%
Richmond has a diverse economy, which includes chemical, food, and tobacco manufacturing, biotech, high-tech fibers, and semiconductors. For those who want to start over with a job in the arts, it has a symphony, ballet, art galleries, and theater companies.
Article from the July newsletter of The Greater Richmond Partnership, Inc.
Friday, July 10, 2009
Making Room For Soldiers At Fort Lee, VA
The Army has approved a 1,000 room lodging facility at Fort Lee, but even with approval, it may not open until early 2012. Construction funding may depend on approval from Congress.
The 1,000 room facility is to help support the student load at Army Logistics University. On July 2, the Army cut the ribbon on the school; with that, there will come a flood of new soldiers. “In July, the logistics university will be supporting 1,800 soldiers,” said Col. Michael Morrow, Fort Lee garrison commander; by July 2011, it will be supporting the full capacity of 2,300 soldiers.
The Army and Fort Lee began looking three years ago at the best ways to house soldiers. Morrow explained that the need is essentially broken down into soldiers staying less than six months, soldiers staying more than six months and Advanced Individual Training soldiers.
The young soldiers that are here for AIT will stay in barracks. New barracks are being built across post to support those soldier and some older barracks are being renovated. Soldiers staying more than six months are considered permanent party. “We’re building new housing on post to support those soldiers and their families.”
There is also a need for housing for soldiers staying less than six months. Currently, Fort Lee is able to provide 570 rooms on post to soldiers staying less than six months. “But right now, several hundred soldiers have to stay in hotels off post,” Morrow said. The Army came up with the solution of the hotel-like 1,000 room Army Lodging structure. The structure has been approved by the Army, but any non-appropriated funds from the Family, Morale, Welfare and Recreation—under which the lodging facility falls—would have to be approved by Congress. The facility may also house Department of the Army civilian employees who are sent to Fort Lee for training or other functions that may last less than six months.
Even after the Army Lodging opens sometime in 2012, they will need between 500 and 800 rooms off post. Despite the demand for rooms, some hotels are missing out in the Tri-City area. The reason for that is per diem. Hotels must accept the federal per diem rate in order to host soldiers. Some do, some don’t and that’s why there is the distribution of soldiers as far as Richmond. Morrow said that starting in August, soldiers will receive the full per diem, which varies by rank and by where the soldier is staying off post. “It’s more flexible and will really help to accommodate their needs.”
Article by F.M. Wiggins, The Progress-Index, June 23, 2009.
The 1,000 room facility is to help support the student load at Army Logistics University. On July 2, the Army cut the ribbon on the school; with that, there will come a flood of new soldiers. “In July, the logistics university will be supporting 1,800 soldiers,” said Col. Michael Morrow, Fort Lee garrison commander; by July 2011, it will be supporting the full capacity of 2,300 soldiers.
The Army and Fort Lee began looking three years ago at the best ways to house soldiers. Morrow explained that the need is essentially broken down into soldiers staying less than six months, soldiers staying more than six months and Advanced Individual Training soldiers.
The young soldiers that are here for AIT will stay in barracks. New barracks are being built across post to support those soldier and some older barracks are being renovated. Soldiers staying more than six months are considered permanent party. “We’re building new housing on post to support those soldiers and their families.”
There is also a need for housing for soldiers staying less than six months. Currently, Fort Lee is able to provide 570 rooms on post to soldiers staying less than six months. “But right now, several hundred soldiers have to stay in hotels off post,” Morrow said. The Army came up with the solution of the hotel-like 1,000 room Army Lodging structure. The structure has been approved by the Army, but any non-appropriated funds from the Family, Morale, Welfare and Recreation—under which the lodging facility falls—would have to be approved by Congress. The facility may also house Department of the Army civilian employees who are sent to Fort Lee for training or other functions that may last less than six months.
Even after the Army Lodging opens sometime in 2012, they will need between 500 and 800 rooms off post. Despite the demand for rooms, some hotels are missing out in the Tri-City area. The reason for that is per diem. Hotels must accept the federal per diem rate in order to host soldiers. Some do, some don’t and that’s why there is the distribution of soldiers as far as Richmond. Morrow said that starting in August, soldiers will receive the full per diem, which varies by rank and by where the soldier is staying off post. “It’s more flexible and will really help to accommodate their needs.”
Article by F.M. Wiggins, The Progress-Index, June 23, 2009.
Monday, June 29, 2009
Have We Reached Bottom? 10 Factors to Consider
RISMEDIA, June 24, 2009-Historically, the value of real estate goes through cycles. Many factors affect the value of homes including the laws of “supply and demand.” From the Appraisal Institute, here’s a quick reference guide to some of the factors involved and advice on how to spot a turning point in the market:
1. A spike in local sales activity. A spike refers to a significant rise in the number of home sales (or values) in a local market area, which generally is measured month to month. A spike does not necessarily mean continued growth, i.e. it could be a one month phenomenon.
2. Higher asking and selling prices vs. appraisal value opinions for residential properties. Appraisers study the markets; they do not make the markets. When the data shows higher sale prices in comparable properties market value opinions will increase proportionally. Appraisers seek evidence of value but do not create the value. In time periods with low activity, evidence of any kind is difficult to find.
3. More activity at open houses. Open houses with five to eight attendees is considered average, so a dozen or more people attending an open house means buyer interest is picking up. Also, the mood of the attendees is important. Are they optimist and upbeat? Buyers interest alone does not always translate to effective purchasing power. If the number of buyers in the market increases but they do not have requisite down payments, the sales may still not occur.
4. Shorter marketing times. In some markets, houses have been up for sale for more than a year. In most balanced residential markets, properties that are priced competitively will typically sell in less than six months. If the Days On Market (DOM) is shortening, many practitioners will read an improvement in the market.
5. Reduced number of foreclosures and short sales. A reduction in these transactions commonly signals a more balanced market. If lenders are reluctant to foreclose because of an oversupply of inventory, they may choose to wait to repossess the properties, which could allow a spike in the number of foreclosures later despite a better market condition.
6. Stabilized employment. Stable or increasing employment rates provide the necessary confidence for potential buyers to invest in a home. Since most buyers rely on borrowed funds to make real estate purchases and borrowing money usually requires a source of repayment and that usually means jobs, an increase in this basic need, will enable more real estate sales.
7. Fewer buyer incentives and seller concessions. Seller-paid incentives or concessions are a sign of seller motivation. If there are fewer builders offering “free” upgrades and fewer sellers sweetening the deal with big screen TVs, it may be a sign of lessening supply and therefore a better market.
8. New construction starts. Most builders are quite attune to their markets and will not build new homes without a corresponding contract for sale or a perceived increase in demand. An increase in the number of building permits usually indicates higher demand and higher prices. If residential properties are selling for 25% less than they cost to build, only a few new homes will be built. It would be prudent to buy an existing home rather than build a new one for a much higher price.
9. “Move-up” buyers entering the market. More buyers willing to move to a larger or superior quality home indicates a healthy market. The lack of buyers at the lower end of the price range will have a chain reaction throughout the market. If a buyer for a high priced home has a lower priced home to sell first, the sale of the higher priced home may have to occur before the higher priced one can sell.
10. Apartments advertising renter specials. Fewer renters in the market may indicate more people are moving into owner occupied homes or it could indicate a reduction in population. Lower population will cause an oversupply of housing which will oftentimes permeate throughout several markets.
Article from RISMedia: http://rismedia.com
1. A spike in local sales activity. A spike refers to a significant rise in the number of home sales (or values) in a local market area, which generally is measured month to month. A spike does not necessarily mean continued growth, i.e. it could be a one month phenomenon.
2. Higher asking and selling prices vs. appraisal value opinions for residential properties. Appraisers study the markets; they do not make the markets. When the data shows higher sale prices in comparable properties market value opinions will increase proportionally. Appraisers seek evidence of value but do not create the value. In time periods with low activity, evidence of any kind is difficult to find.
3. More activity at open houses. Open houses with five to eight attendees is considered average, so a dozen or more people attending an open house means buyer interest is picking up. Also, the mood of the attendees is important. Are they optimist and upbeat? Buyers interest alone does not always translate to effective purchasing power. If the number of buyers in the market increases but they do not have requisite down payments, the sales may still not occur.
4. Shorter marketing times. In some markets, houses have been up for sale for more than a year. In most balanced residential markets, properties that are priced competitively will typically sell in less than six months. If the Days On Market (DOM) is shortening, many practitioners will read an improvement in the market.
5. Reduced number of foreclosures and short sales. A reduction in these transactions commonly signals a more balanced market. If lenders are reluctant to foreclose because of an oversupply of inventory, they may choose to wait to repossess the properties, which could allow a spike in the number of foreclosures later despite a better market condition.
6. Stabilized employment. Stable or increasing employment rates provide the necessary confidence for potential buyers to invest in a home. Since most buyers rely on borrowed funds to make real estate purchases and borrowing money usually requires a source of repayment and that usually means jobs, an increase in this basic need, will enable more real estate sales.
7. Fewer buyer incentives and seller concessions. Seller-paid incentives or concessions are a sign of seller motivation. If there are fewer builders offering “free” upgrades and fewer sellers sweetening the deal with big screen TVs, it may be a sign of lessening supply and therefore a better market.
8. New construction starts. Most builders are quite attune to their markets and will not build new homes without a corresponding contract for sale or a perceived increase in demand. An increase in the number of building permits usually indicates higher demand and higher prices. If residential properties are selling for 25% less than they cost to build, only a few new homes will be built. It would be prudent to buy an existing home rather than build a new one for a much higher price.
9. “Move-up” buyers entering the market. More buyers willing to move to a larger or superior quality home indicates a healthy market. The lack of buyers at the lower end of the price range will have a chain reaction throughout the market. If a buyer for a high priced home has a lower priced home to sell first, the sale of the higher priced home may have to occur before the higher priced one can sell.
10. Apartments advertising renter specials. Fewer renters in the market may indicate more people are moving into owner occupied homes or it could indicate a reduction in population. Lower population will cause an oversupply of housing which will oftentimes permeate throughout several markets.
Article from RISMedia: http://rismedia.com
Wednesday, May 27, 2009
Napier is a Leader in the Community
Napier Realtors ERA’s dedication to service has been rewarded time and time again with numerous awards locally and nationally. However, our commitment to making our community a better place to live is more important than any award. As a proud supporter of the VCU Massey Cancer Center, MDA, the Faison School for Autism and many others, Napier ERA’s management, sales associates and staff proudly donate their time and efforts to worthy programs like these that need our support.
If you would also like the satisfaction of supporting one of the nation’s Top Cancer Research Centers, we invite you to join us on June 11, 2009, at 7:00pm at the Science Museum of Virginia, 2500 West Broad Street, Richmond, VA, for a “Music For Massey” concert featuring The Sam Bush Band and The Waybacks. All proceeds go to the VCU Massey Cancer Center. For ticket information, please visit http://www.musicformassey.com.
We thank you for your support.
If you would also like the satisfaction of supporting one of the nation’s Top Cancer Research Centers, we invite you to join us on June 11, 2009, at 7:00pm at the Science Museum of Virginia, 2500 West Broad Street, Richmond, VA, for a “Music For Massey” concert featuring The Sam Bush Band and The Waybacks. All proceeds go to the VCU Massey Cancer Center. For ticket information, please visit http://www.musicformassey.com.
We thank you for your support.
Monday, May 18, 2009
Napier Makes Your Home Search Easier
Napier Realtors ERA’s web site has a new design! We have made it easier and quicker for you to search for your new home from our homepage. Or, if you prefer, you can go directly to our Advanced Property Search. Either way, our Relocation Department and our Sales Associates, who are all dedicated to excellence, integrity, and trust, are available to ensure that every buyer and seller always gets the very best service!
Tuesday, May 12, 2009
Richmond Real Estate Market Recovering?
ERA's new CEO, Charlie Young, came to speak at Napier's company meeting this morning. ERA has over 600 companies, in 50 different countries, and 33,000 sales associates worldwide. Charlie brings perspective with him by the truckload!
During his talk, he mentioned the economic cycle of real estate and how that cycle is in different places around the country. Some of the markets that led us into the real estate decline are now beginning to lead us out of it. Markets like California, Florida, Nevada, Arizona, and Michigan are improving year over year.
The market here in Richmond seems to be very close to bottom with a few markets trending towards the early stages of recovery. Funny, just this morning a guest on the Today Show declared the recession is over. Our comments, "We're glad to hear that. Now we can move on." Bottom line, we may not be out of the woods all the way, but a lot of us think the edge of the forest is just off in the distance...
During his talk, he mentioned the economic cycle of real estate and how that cycle is in different places around the country. Some of the markets that led us into the real estate decline are now beginning to lead us out of it. Markets like California, Florida, Nevada, Arizona, and Michigan are improving year over year.
The market here in Richmond seems to be very close to bottom with a few markets trending towards the early stages of recovery. Funny, just this morning a guest on the Today Show declared the recession is over. Our comments, "We're glad to hear that. Now we can move on." Bottom line, we may not be out of the woods all the way, but a lot of us think the edge of the forest is just off in the distance...
Subscribe to:
Posts (Atom)