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Friday, 31 July 2009
Housing Affordability Surges to Highest Level in 18 Years
RISMEDIA, May 20, 2009-Nationwide housing affordability jumped 10 percentage points during the first quarter of 2009 to its highest level since the series began 18 years ago, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI). The HOI showed that 72.5% of all new and existing homes sold in the first quarter of 2009 were affordable to families earning the national median income of $64,000, up from 62.4% during the previous quarter and up from 53.8% during the first quarter of 2008.
“Underlying the increase in affordability are lower home prices and record low interest rates. Combined with the $8,000 federal tax credit for first-time home buyers, consumers are beginning to return to the marketplace,” said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla.
Indianapolis was the most affordable major housing market in the country during the first quarter. Almost 95% of all homes sold were affordable to households earning the area’s median family income of $68,100. Indianapolis has now topped the affordability list 15 consecutive quarters.
Also near the top of the list of the most affordable major metro housing markets were Youngstown-Warren-Boardman, Ohio-Pa.; Akron, Ohio; Grand Rapids-Wyoming, Mich.; and Syracuse, N.Y.
Several smaller housing markets posted even higher affordability scores than Indianapolis, with Sandusky, Ohio outscoring all others. There, almost 98% of homes sold during the first quarter of 2009 were affordable to median-income earners. Other small housing markets ahead of Indianapolis on the affordability scale included Monroe in Michigan and Mansfield, Springfield and Canton-Massillon in Ohio.
New York-White Plains-Wayne, N.Y.-N.J., where just over 21% of all homes sold during the period were affordable to those earning the median income of $64,800, was once again the nation’s least affordable major housing market in the first quarter. Though affordability jumped 7 percentage points for the quarter, this was the New York metro area’s fourth consecutive appearance at the bottom of the list. Other major metros near the bottom of the chart included San Francisco; Los Angeles-Long Beach-Glendale, Calif.; Nassau-Suffolk, N.Y.; and Honolulu.
Among smaller metro areas, Ocean City, N.J. was the least affordable market, along with San Luis Obispo-Paso Robles, Calif.; Flagstaff, Ariz.; Hanford-Corcoran, Calif.; and Santa Cruz-Watsonville, Calif., respectively.
For more information, visit www.nahb.org.
If you would like to buy or sell Wilmington, NC real estate, contact Sandy and Steve Thornton for all your home buying and selling needs. Specializing in Wilmington, Leland, Hampstead, Sneads Ferry, Jacksonville, Topsail Island including Surf City, Topsail Beach, North Topsail Beach, Beach and waterfront properties covering New Hanover County, Pender County, Brunswick County and Onslow County areas.
Thursday, 30 July 2009
U.S. Foreclosure Activity Decreases 6% in May
RISMEDIA, June 11, 2009-RealtyTrac®, one of the leading online marketplaces for foreclosure properties, released its May 2009 U.S. Foreclosure Market ReportTM, which shows foreclosure filings-default notices, scheduled auctions and bank repossessions-were reported on 321,480 U.S. properties during the month, a decrease of 6% from the previous month but an increase of nearly 18% from April 2008. The report also shows that one in every 398 U.S. housing units received a foreclosure filing in May.
“May foreclosure activity was the third highest month on record, and marked the third straight month where the total number of properties with foreclosure filings exceeded 300,000 - a first in the history of our report,” said James J. Saccacio, chief executive officer of RealtyTrac. “While defaults and scheduled foreclosure auctions were both down from the previous month, bank repossessions, or REOs, were up 2% thanks largely to substantial increases in several states, including Michigan, Arizona, Washington, Nevada, Oregon and New York. We expect REO activity to spike in the coming months as foreclosure delays and moratoria implemented by various state laws come to an end.”
Nevada, California, Florida post top state foreclosure rates
Nevada continued to document the nation’s highest foreclosure rate, with one in every 64 housing units receiving a foreclosure filing during the month - more than six times the national average.
With one in every 144 housing units receiving a foreclosure filing during the month, California posted the nation’s second highest state foreclosure rate despite a 4% decrease in foreclosure activity from the previous month.
Florida posted the third highest state foreclosure rate in May, with one in every 148 housing units receiving a foreclosure filing during the month
Arizona posted the fourth highest state foreclosure rate in May, with one in every 158 housing units receiving a foreclosure filing, and Utah posted the fifth highest state foreclosure rate, with one in every 316 housing units receiving a foreclosure filing.
Other states with foreclosure rates ranking among the nation’s 10 highest were Michigan, Georgia, Colorado, Idaho and Ohio.
Top 10 states account for nearly 77% of total U.S. foreclosure activity.
California reported 92,249 properties with foreclosure filings in May, the highest total of any state and up nearly 23% from May 2008. Bank repossessions in California were down 1% from the previous month and defaults were down 18%, but scheduled auctions were up 18%.
Default notices, scheduled auctions and bank repossessions in Florida were all down from the previous month, but the state still posted the nation’s second highest number of properties with foreclosure filings: 58,931, up 50% from May 2008.
Nevada documented 17,157 properties with foreclosure filings in May, the third highest total of any state and up nearly 83% from May 2008. A 23% increase in bank repossessions helped push Nevada foreclosure activity up 5% from the previous month.
Other states with totals among the 10 highest in the country were Arizona (16,865), Michigan (13,891), Ohio (11,360), Illinois (10,942), Georgia (10,516), Texas (9,813) and Virginia (5,385). The top 10 states accounted for nearly 77% of total properties with foreclosure filings nationwide.
California, Florida, Nevada dominate top 10 metro foreclosure rates
Foreclosure filings were reported on 14,681 Las Vegas properties in May, one in every 54 housing units - more than seven times the national average and the highest foreclosure rate among metro areas with a population of at least 200,000. The city’s foreclosure activity increased 4% from the previous month and 78% from May 2008.
California and Florida accounted for the remainder of top 10 metro foreclosure rates.
California cities accounted for six of the top 10 spots: Stockton at No. 2 (one in 68 housing units), Modesto at No. 3 (one in 71), Riverside-San Bernardino at No. 4 (one in 75), Merced at No. 5 (one in 78), Bakersfield at No. 7 (one in 94), and Vallejo-Fairfield at No. 9 (one in 101).
Florida cities accounted for three of the top 10 spots: Cape Coral-Fort Myers at No. 6 (one in 82 housing units), Orlando-Kissimmee at No. 8 (one in 101), and Miami-Fort Lauderdale-Pompano Beach at No. 10 (one in 105).
For more information, visit www.realtytrac.com.
If you would like to buy or sell Wilmington, NC real estate, contact Sandy and Steve Thornton for all your home buying and selling needs. Specializing in Wilmington, Leland, Hampstead, Sneads Ferry, Jacksonville, Topsail Island including Surf City, Topsail Beach, North Topsail Beach, Beach and waterfront properties covering New Hanover County, Pender County, Brunswick County and Onslow County areas.
Thursday, 30 July 2009
U.S. Foreclosure Activity Decreases 6% in May
RISMEDIA, June 11, 2009-RealtyTrac®, one of the leading online marketplaces for foreclosure properties, released its May 2009 U.S. Foreclosure Market ReportTM, which shows foreclosure filings-default notices, scheduled auctions and bank repossessions-were reported on 321,480 U.S. properties during the month, a decrease of 6% from the previous month but an increase of nearly 18% from April 2008. The report also shows that one in every 398 U.S. housing units received a foreclosure filing in May.
“May foreclosure activity was the third highest month on record, and marked the third straight month where the total number of properties with foreclosure filings exceeded 300,000 - a first in the history of our report,” said James J. Saccacio, chief executive officer of RealtyTrac. “While defaults and scheduled foreclosure auctions were both down from the previous month, bank repossessions, or REOs, were up 2% thanks largely to substantial increases in several states, including Michigan, Arizona, Washington, Nevada, Oregon and New York. We expect REO activity to spike in the coming months as foreclosure delays and moratoria implemented by various state laws come to an end.”
Nevada, California, Florida post top state foreclosure rates
Nevada continued to document the nation’s highest foreclosure rate, with one in every 64 housing units receiving a foreclosure filing during the month - more than six times the national average.
With one in every 144 housing units receiving a foreclosure filing during the month, California posted the nation’s second highest state foreclosure rate despite a 4% decrease in foreclosure activity from the previous month.
Florida posted the third highest state foreclosure rate in May, with one in every 148 housing units receiving a foreclosure filing during the month
Arizona posted the fourth highest state foreclosure rate in May, with one in every 158 housing units receiving a foreclosure filing, and Utah posted the fifth highest state foreclosure rate, with one in every 316 housing units receiving a foreclosure filing.
Other states with foreclosure rates ranking among the nation’s 10 highest were Michigan, Georgia, Colorado, Idaho and Ohio.
Top 10 states account for nearly 77% of total U.S. foreclosure activity.
California reported 92,249 properties with foreclosure filings in May, the highest total of any state and up nearly 23% from May 2008. Bank repossessions in California were down 1% from the previous month and defaults were down 18%, but scheduled auctions were up 18%.
Default notices, scheduled auctions and bank repossessions in Florida were all down from the previous month, but the state still posted the nation’s second highest number of properties with foreclosure filings: 58,931, up 50% from May 2008.
Nevada documented 17,157 properties with foreclosure filings in May, the third highest total of any state and up nearly 83% from May 2008. A 23% increase in bank repossessions helped push Nevada foreclosure activity up 5% from the previous month.
Other states with totals among the 10 highest in the country were Arizona (16,865), Michigan (13,891), Ohio (11,360), Illinois (10,942), Georgia (10,516), Texas (9,813) and Virginia (5,385). The top 10 states accounted for nearly 77% of total properties with foreclosure filings nationwide.
California, Florida, Nevada dominate top 10 metro foreclosure rates
Foreclosure filings were reported on 14,681 Las Vegas properties in May, one in every 54 housing units - more than seven times the national average and the highest foreclosure rate among metro areas with a population of at least 200,000. The city’s foreclosure activity increased 4% from the previous month and 78% from May 2008.
California and Florida accounted for the remainder of top 10 metro foreclosure rates.
California cities accounted for six of the top 10 spots: Stockton at No. 2 (one in 68 housing units), Modesto at No. 3 (one in 71), Riverside-San Bernardino at No. 4 (one in 75), Merced at No. 5 (one in 78), Bakersfield at No. 7 (one in 94), and Vallejo-Fairfield at No. 9 (one in 101).
Florida cities accounted for three of the top 10 spots: Cape Coral-Fort Myers at No. 6 (one in 82 housing units), Orlando-Kissimmee at No. 8 (one in 101), and Miami-Fort Lauderdale-Pompano Beach at No. 10 (one in 105).
For more information, visit www.realtytrac.com.
If you would like to buy or sell Wilmington, NC real estate, contact Sandy and Steve Thornton for all your home buying and selling needs. Specializing in Wilmington, Leland, Hampstead, Sneads Ferry, Jacksonville, Topsail Island including Surf City, Topsail Beach, North Topsail Beach, Beach and waterfront properties covering New Hanover County, Pender County, Brunswick County and Onslow County areas.
Thursday, 30 July 2009
U.S. Foreclosure Activity Decreases 6% in May
RISMEDIA, June 11, 2009-RealtyTrac®, one of the leading online marketplaces for foreclosure properties, released its May 2009 U.S. Foreclosure Market ReportTM, which shows foreclosure filings-default notices, scheduled auctions and bank repossessions-were reported on 321,480 U.S. properties during the month, a decrease of 6% from the previous month but an increase of nearly 18% from April 2008. The report also shows that one in every 398 U.S. housing units received a foreclosure filing in May.
“May foreclosure activity was the third highest month on record, and marked the third straight month where the total number of properties with foreclosure filings exceeded 300,000 - a first in the history of our report,” said James J. Saccacio, chief executive officer of RealtyTrac. “While defaults and scheduled foreclosure auctions were both down from the previous month, bank repossessions, or REOs, were up 2% thanks largely to substantial increases in several states, including Michigan, Arizona, Washington, Nevada, Oregon and New York. We expect REO activity to spike in the coming months as foreclosure delays and moratoria implemented by various state laws come to an end.”
Nevada, California, Florida post top state foreclosure rates
Nevada continued to document the nation’s highest foreclosure rate, with one in every 64 housing units receiving a foreclosure filing during the month - more than six times the national average.
With one in every 144 housing units receiving a foreclosure filing during the month, California posted the nation’s second highest state foreclosure rate despite a 4% decrease in foreclosure activity from the previous month.
Florida posted the third highest state foreclosure rate in May, with one in every 148 housing units receiving a foreclosure filing during the month
Arizona posted the fourth highest state foreclosure rate in May, with one in every 158 housing units receiving a foreclosure filing, and Utah posted the fifth highest state foreclosure rate, with one in every 316 housing units receiving a foreclosure filing.
Other states with foreclosure rates ranking among the nation’s 10 highest were Michigan, Georgia, Colorado, Idaho and Ohio.
Top 10 states account for nearly 77% of total U.S. foreclosure activity.
California reported 92,249 properties with foreclosure filings in May, the highest total of any state and up nearly 23% from May 2008. Bank repossessions in California were down 1% from the previous month and defaults were down 18%, but scheduled auctions were up 18%.
Default notices, scheduled auctions and bank repossessions in Florida were all down from the previous month, but the state still posted the nation’s second highest number of properties with foreclosure filings: 58,931, up 50% from May 2008.
Nevada documented 17,157 properties with foreclosure filings in May, the third highest total of any state and up nearly 83% from May 2008. A 23% increase in bank repossessions helped push Nevada foreclosure activity up 5% from the previous month.
Other states with totals among the 10 highest in the country were Arizona (16,865), Michigan (13,891), Ohio (11,360), Illinois (10,942), Georgia (10,516), Texas (9,813) and Virginia (5,385). The top 10 states accounted for nearly 77% of total properties with foreclosure filings nationwide.
California, Florida, Nevada dominate top 10 metro foreclosure rates
Foreclosure filings were reported on 14,681 Las Vegas properties in May, one in every 54 housing units - more than seven times the national average and the highest foreclosure rate among metro areas with a population of at least 200,000. The city’s foreclosure activity increased 4% from the previous month and 78% from May 2008.
California and Florida accounted for the remainder of top 10 metro foreclosure rates.
California cities accounted for six of the top 10 spots: Stockton at No. 2 (one in 68 housing units), Modesto at No. 3 (one in 71), Riverside-San Bernardino at No. 4 (one in 75), Merced at No. 5 (one in 78), Bakersfield at No. 7 (one in 94), and Vallejo-Fairfield at No. 9 (one in 101).
Florida cities accounted for three of the top 10 spots: Cape Coral-Fort Myers at No. 6 (one in 82 housing units), Orlando-Kissimmee at No. 8 (one in 101), and Miami-Fort Lauderdale-Pompano Beach at No. 10 (one in 105).
For more information, visit www.realtytrac.com.
If you would like to buy or sell Wilmington, NC real estate, contact Sandy and Steve Thornton for all your home buying and selling needs. Specializing in Wilmington, Leland, Hampstead, Sneads Ferry, Jacksonville, Topsail Island including Surf City, Topsail Beach, North Topsail Beach, Beach and waterfront properties covering New Hanover County, Pender County, Brunswick County and Onslow County areas.
Wednesday, 29 July 2009
First-Time Homebuyers Have Unique Advantage in Mortgage Market
By George W. Manto
RISMEDIA, July 28, 2009-(MCT)-First-time homebuyers and those thinking about refinancing are in a great place.
Mortgage rates just fell for the third straight week, according to mortgage finance firm Freddie Mac.
“The credit markets are still tight, but they have loosened up significantly from 90 days ago,” said Scott Norman, vice president of the Texas Mortgage Bankers Association.
So is this a good time to enter a mortgage transaction? It might be, if you can qualify. “The two biggest issues are going to be credit and down payment,” Norman said. “Those are really going to trigger your ability to get a mortgage in a decent amount of time.”
Here’s what you’re up against in specific mortgage situations and what you can do to increase your chances of getting a deal done.
If you’re buying a home
Get ready for paperwork. Have your bank statements, W-2 wage and tax statement and pay stubs organized.
“Overdocumentation is the name of the game right now,” said Linda Davidson, senior loan officer at Service First Mortgage in Garland, Texas.
Having all the documents upfront will speed the application process.
Check your credit score. The most widely used score is the FICO, which ranges from 300 to 850. Your score, based on information in your credit report, helps lenders predict how likely you are to make your payments on time. The higher the number, the better the chance you’ll be approved for a loan at a low interest rate. “Clean up your credit score,” Norman said. Catch up on any late payments and pay off or pay down your debt.
First-time buyers have a sweetener in the form of an $8,000 credit on federal income taxes for homes purchased before Dec. 1.
It’s critical that you have a down payment because lenders want to see that you have skin in the game. Mortgages insured by the Federal Housing Administration require a 3.5% down payment, which can come from a family member, employer or charitable organization as a gift. For a non-FHA-insured loan, lenders are requiring a 10% down payment, said real estate agent Brenda Rogers of Coldwell Banker Apex, Realtors in Plano, Texas.
If you’re refinancing
“Have plenty of equity,” Rogers said. Equity represents the ownership value you’ve accumulated over time by making payments, and lenders want you to have a financial stake in the refinancing. “The lender doesn’t want to lend 100 percent of the value of the property,” said Norman, of the Texas Mortgage Bankers Association.
Another reason to build equity is that you don’t want to owe more on your home than it’s worth, a situation some homeowners face today.
Also, consider how long you plan to remain in your home, because you need to stay long enough to recoup closing costs associated with refinancing. Those costs typically will total $3,000 to $5,000, said Davidson, of Service First Mortgage. “If you’re going to move out of your home in five years or less, then typically it’s not going to be worth your doing,” she said. “If you plan on staying longer than that, then we need to look at the costs vs. the monthly savings to see how long it will take to recoup that cost.”
Sometimes things outside your control can affect your attempt to refinance.
Rachel Kelley of Plano said she’s been trying to refinance with Bank of America, which last year acquired her original lender, Countrywide Financial Corp. Kelley, a medical writer, ran into financial trouble after her work was cut to part time. “I cannot afford my house payment anymore,” she said. She said her repeated attempts to get more information from Bank of America on how to refinance her home through the Obama administration’s Making Home Affordable refinancing program have been unsuccessful. “I spoke to several people, trying to get information about the program and what I needed to do to refinance,” Kelley said. “It is very likely I will be behind on my payments in the near future due to their inability to get me the proper information on time in order to refinance.”
Loan modifications
A loan modification is when a lender changes the terms of your loan so you can afford your payments.
That can be done by lengthening the term of your loan, lowering your interest rate or allowing you to skip payments and adding those to the end of your loan.
The Obama administration is prodding mortgage-servicing companies to bolster their efforts to modify troubled loans. The servicer is the company that collects and processes your mortgage payment. It may or may not be your original lender.
If you’re having trouble making your payment, contact your servicer immediately and ask about a loan modification.
(c) 2009, The Dallas Morning News.
Distributed by McClatchy-Tribune Information Services.
If you would like to buy or sell Wilmington, NC real estate, contact Sandy and Steve Thornton for all your home buying and selling needs. Specializing in Wilmington, Leland, Hampstead, Sneads Ferry, Jacksonville, Topsail Island including Surf City, Topsail Beach, North Topsail Beach, Beach and waterfront properties covering New Hanover County, Pender County, Brunswick County and Onslow County areas.
Tuesday, 28 July 2009
New-Home Sales Rise 11 Percent In June, Marking Third Consecutive Month of Improved Sales Activity
 Print Article
RISMEDIA, July 28, 2009-Sales of newly built, single-family homes rose 11% in June to a seasonally adjusted annual rate of 384,000 units, according to numbers released by the U.S. Commerce Department. Coming on the heels of an upwardly revised number for May, the gain marks a third consecutive month of improved sales activity.
“This 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% 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%), Midwest (43.1%), and West (22.6%) in June. Meanwhile, sales activity declined 5.3% in the South, which is the country’s largest housing market.
For more information, visit www.nahb.org.
Monday, 27 July 2009
WRAR: Average home price dropped almost 9% this year
July 27, 2009By Josh Spilker
The average sales price for Wilmington homes took about a 9 percent drop from the end of 2008 to June 30, the end of the second quarter. The good news is, most of that drop happened in the first quarter.
According to a report from the Wilmington Regional Association of Realtors (WRAR), the average sales price in five major Wilmington zip codes dropped 8.9 percent from the end of 2008, and a decrease of about .07 percent from the end of the first quarter 2009.
The median sales price dropped 9.9 percent from year-end 2008, and 3.5 decrease from last quarter.
WRAR President April McDavid said that the number of sales in the area is more on par with ten years ago. She called the time between 1998 and 2003 as a time of “slow, steady growth.”
“Instead of a steep incline then a fast decline, I think we’re trying to stabilize and get to a more normal market,” she said.
Though the average sales prices have decreased, Jeff Sweyer from Century 21 Sweyer and Associates sees positives in the unit sales.
“If you look at the national trends and in the southeast, we’re pretty much in line in what’s going on in those trends. We’re definitely seeing prices come down, but saying that, we’re seeing unit sales in some price ranges do better than previous years,” Sweyer said.
“It’s giving people an incentive to purchase more houses, because people see there is value out there.”
The report from WRAR included breakdowns of the area codes 28403, 28405, 28409, 28411 and 28412.
The average selling price for each zip code was down, with the 28405 zip code having the largest percentage drop. The average selling price in the 28405 zip code at the end of 2008 was $296,397 compared to $248,234, a 16.2 percent drop.
The 28411 zip code had the lowest percentage drop, from $317,945 at the end of 2008 to $305,237 at the end of this quarter, a 4 percent.
If you would like to buy or sell Wilmington, NC real estate, contact Sandy and Steve Thornton for all your home buying and selling needs. Specializing in Wilmington, Leland, Hampstead, Sneads Ferry, Jacksonville, Topsail Island including Surf City, Topsail Beach, North Topsail Beach, Beach and waterfront properties covering New Hanover County, Pender County, Brunswick County and Onslow County areas.
Monday, 27 July 2009
Fed Plans Consumer-Friendly Changes to Mortgage Rules
By Kevin G. Hall Print Article
RISMEDIA, July 27, 2009-(MCT)-Federal Reserve governors unanimously proposed tough new consumer-friendly disclosure rules for mortgages and home equity loans last week, tackling one of the less-appreciated causes of the nation’s deep financial crisis.
After 18 months of study and consumer testing, the Fed’s division of consumer affairs proposed, and governors accepted, a change to how finance charges and the annual percentage rate would be calculated. They also proposed restricting some bonus compensation from lenders to those who originate loans.
The action by the Fed’s Board of Governors, which requires a four-month comment period before becoming final, came as Congress is weighing an Obama administration proposal to strip the central bank of some of its regulatory authority over consumer credit products such as mortgages and credit cards. The administration favors giving those powers to a new Consumer Financial Protection Agency, which would have the sole mandate of protecting consumers from abusive practices such as the weakened lending standards that triggered a collapse of the housing sector. This crisis in mortgage lending quickly morphed into a global financial crisis.
Last week’s Fed vote also came hours after the National Association of Realtors reported that sales of existing homes rose 3.6% in June, the third consecutive month of increasing sales. All regions of the country posted growth, and the percentage of distress sales fell to 31% from 33% in May.
“This report provides further evidence that activity in the housing market is stabilizing and that price declines are slowing,” the New York forecasting firm RDQ Economics said in a note to investors. “The increase in home sales over the last three months was the fastest since May 2004 (in percentage terms) and the NAR reports that the share of distressed sales is declining. This report, along with recent data on housing starts, building permits suggests that we may have seen the bottom in home sales and housing construction.”
Wall Street cheered the housing news.
The Dow Jones Industrial Average closed up 188.03 points to 9069.29, crossing the psychological threshold of 9,000. The S&P 500 finished up 22.22 points to 976.29, and the Nasdaq wrapped up the day with a gain of 47.22 points to 1973.60.
Under the Fed proposal, lenders or other originators of mortgages-such as mortgage brokers-would have to provide borrowers with clear one-page explanations of how adjustable-rate mortgages, like those that triggered the housing crisis, differ from fixed-rate products. They’d have to provide clearer examples of what borrowers’ true costs would be, using the loans themselves rather than generic examples. In doing so, they’d have to include things such as title insurance and pest inspection that aren’t factored in now.
Lenders also would have to notify borrowers of payment changes 60 days beforehand, rather than the current 25 days. Similarly, for home-equity lines of credit, the notification period would be 45 days instead of 15.
Those moves are decidedly more consumer-friendly, giving borrowers more notice to adjust to pending changes and perhaps seek refinancing in the case of adjustable-rate loans.
The proposed rules also would allow home-equity lenders to suspend or reduce lines of credit when the prices of the properties involved decline by 5% and the borrowers have paid off no more than 10% of the loans. This gives lenders more legal cover to pull back credit, something they’ve done of late-to the ire of consumers-without clear guidance from federal regulation.
The most controversial proposed change is restricting special compensation from lenders when mortgage brokers get borrowers into higher-priced loans when they qualified for lower rates. This bonus, called a yield-spread premium, was a factor in the explosion of sub-prime lending, which involved high-cost loans given to the weakest borrowers.
The National Association of Mortgage Brokers has defended these special commissions but it declined immediate comment on the proposed rule change, which expressly would prohibit steering consumers to higher-priced products in pursuit of personal gain.
During the comment period, the Fed will work to create similar disclosures at the Department of Housing and Urban Development, which has jurisdiction over the settlement documents involved in home purchases.
“It is a complex and comprehensive proposal, so I think an extended comment period is appropriate,” Fed Chairman Ben Bernanke said.
(c) 2009, McClatchy-Tribune Information Services.
Visit the McClatchy Washington Bureau on the World Wide Web at www.mcclatchydc.com.
If you would like to buy or sell Wilmington, NC real estate, contact Sandy and Steve Thornton for all your home buying and selling needs. Specializing in Wilmington, Leland, Hampstead, Sneads Ferry, Jacksonville, Topsail Island including Surf City, Topsail Beach, North Topsail Beach, Beach and waterfront properties covering New Hanover County, Pender County, Brunswick County and Onslow County areas.
Saturday, 25 July 2009
Signs of Change: Existing-Home Sales Rise 3.6% in June
 RISMEDIA, July 24, 2009-Existing-home sales rose for the third consecutive month with inventory easing and home prices declining less sharply in June, according to the National Association of Realtors®.
Existing-home sales-including single-family, townhomes, condominiums and co-ops-increased 3.6% to a seasonally adjusted annual rate of 4.89 million units in June from a downwardly revised pace of 4.72 million in May, but are 0.2% lower than the 4.90 million-unit level in June 2008.
Lawrence Yun, NAR chief economist, is hopeful about the gain. “The increase in existing-home sales occurred in all major regions of the country,” he said. “We expect a gradual uptrend in sales to continue due to tax credit incentives and historically high affordability conditions. Despite the rise in closed transactions, many Realtors® are reporting lost sales as a result of new appraisal standards that went into effect May 1 of this year.”
A June survey of NAR members shows 3% experienced at least one lost sale as a result of the new Home Valuation Code of Conduct, with seven out of 10 reporting an increased use of out-of-area appraisers. Seventy percent of NAR appraiser members said consumers were paying higher fees, while 85% report a perceived reduction in appraisal quality.
“Clearly the process needs to be revised, but the most logical approach is to use appraisers with local expertise, industry designations and access to local data, who make a physical examination of the property and use apples-to-apples comparisons with nearby home sales,” Yun said. “In many cases, normal homes are being compared with distressed homes sold at a discount, which often are in subpar condition-this is causing real harm to both buyers and sellers.”
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 5.42% in June from 4.86% in May; the rate was 6.32% in June 2008. Mortgage interest rates have trended lower in recent weeks.
Total housing inventory at the end of June fell 0.7% to 3.82 million existing homes available for sale, which represents a 9.4-month supply at the current sales pace, down from a 9.8-month supply in May. Raw inventory totals are 14.9% below a year ago.
“This is another hopeful sign-if we can keep the volume of sales above the level of new inventory, prices could stabilize in many areas around the end of the year,” Yun said.
An NAR practitioner survey in June showed first-time buyers accounted for 29% of transactions, unchanged from May, and that the number of buyers looking at homes is up nearly 12 percentage points from June 2008.
NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said there are very good opportunities. “Despite some of the challenges, the housing market continues to demonstrate signs of recovery,” he said. “The temporary first-time buyer tax credit is clearly helping people make a decision and is contributing to the overall stimulus impact, but since it’s taking longer to close transactions, many would-be beneficiaries may not be able to take advantage of the credit before the December 1 expiration date. As a consequence, consumers need the expertise of Realtors more than ever to navigate both the obstacles and opportunities in today’s market.”
The national median existing-home price for all housing types was $181,800 in June, which is 15.4% below June 2008. Distressed properties, which accounted for 31% of sales in June, continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes.
Single-family home sales rose 2.4% to a seasonally adjusted annual rate of 4.32 million in June from a level of 4.22 million in May, and are 0.2% higher than the 4.31 million-unit pace a year ago. The median existing single-family home price was $181,600 in June, which is 15.0% below June 2008.
Existing condominium and co-op sales jumped 14.0% to a seasonally adjusted annual rate of 570,000 units in June from 500,000 in May, but are 3.1% below the 588,000-unit level in June 2008. The median existing condo price was $183,300 in June, down 18.9% from a year ago.
Northeast
Regionally, existing-home sales in the Northeast rose 2.5% to an annual pace of 820,000 in June, but are 4.7% below a year ago. The median price in the Northeast was $249,400, down 5.9% from June 2008.
Midwest
Existing-home sales in the Midwest increased 0.9% in June to a level of 1.10 million but are 1.8% lower than June 2008. The median price in the Midwest was $157,000, which is 9.1% below a year ago.
South
In the South, existing-home sales rose 4.0% to an annual pace of 1.81 million in June but are 3.7% below a year ago. The median price in the South was $163,200, down 11.9% from June 2008.
West
Existing-home sales in the West improved by 6.4% to an annual rate of 1.16 million in June, and are 11.5% higher than June 2008. The median price in the West was $214,800, which is 24.9% below a year ago.
For more information, visit www.realtor.org.
If you would like to buy or sell Wilmington, NC real estate, contact Sandy and Steve Thornton for all your home buying and selling needs. Specializing in Wilmington, Leland, Hampstead, Sneads Ferry, Jacksonville, Topsail Island including Surf City, Topsail Beach, North Topsail Beach, Beach and waterfront properties covering New Hanover County, Pender County, Brunswick County and Onslow County areas.
Thursday, 23 July 2009
Ready to Remodel? How to Make Your Remodeling Project Pay Off
By Jean Patteson Print Article
RISMEDIA, July 22, 2009-(MCT)-While the market continues to struggle, homeowners are faced with an important question: Is a home remodeling project worth it?
“There are a lot of answers to that question,” says Stephen Gidus, co-owner of PSG Construction in Orlando, Fla.
It’s worth it when it makes life more comfortable, convenient and aesthetically pleasing for the homeowner-especially if the homeowner plans to be in the home to enjoy the improvements for years to come, he said. It also is worthwhile if it adds value to the home, and is likely to be attractive to future buyers.
Projects that traditionally boost a home’s value and appeal include kitchen and bathroom remodels, and the renovation or addition of a porch, says Scott McCurdy of Coastal Reconstruction in Orlando. Simple additions that add character to a home also increase its resale value. Interior and exterior paint can add “a lot of zing especially in colors that are currently popular, such as greens and black.
Other smaller projects include installing trims such as crown moldings, wider baseboards and tile back splash; changing the hardware on doors; changing toilets, sinks and bathroom hardware; installing new appliances; upgrading countertops; or reworking cabinets by painting them or replacing the doors and hardware.
Gidus suggests two other remodel projects that boost value: the addition of storage space and a multipurpose room. “Here in Florida we don’t have basements or large attics. Extra closet space is very valuable. It has a lot of appeal for resale.”
Also, flex-space at the back of the house or upstairs is great. “Based on the size of the family and where they are in the growth cycle, it could be used as a playroom, recreation room, home office, exercise room or entertainment space,” says Gidus. “And based on your budget, you could include built-in bookcases, an entertainment center, fireplace, full- or half-bath, wet bar, under-counter fridge and a porch or lanai for outdoor living.”
But the kitchen is still king when it comes to adding value to a home, followed by the bathroom. “Those rooms are designed for today. The look and functionality of cabinets, appliances, tile, lighting fixtures, et cetera, becomes outdated fastest,” says Gidus.
Kitchens, in particular, are changing-in looks, layout and function, says McCurdy. “We’re finally realizing the kitchen has always been the main gathering point in the home. But until recently, most kitchens have been inadequate to take a crowd,” he says. A renovation project can expand the kitchen or open it up to an adjoining space by removing a dividing wall.
Other popular upgrades include commercial-grade stainless-steel appliances; a computer desk; comfortable seating; better-quality cabinetry; granite countertops; and even a fireplace.
A remodeled bathroom usually combines luxury with function, says McCurdy. “It’s a place to retreat and unwind.” Features that increase a bathroom’s appeal include larger showers with rain shower heads, steam showers, body sprays, heated floors and hinged glass doors or partial shower walls. Also, soaking tubs instead of Jacuzzis, more windows and skylights to let in sunlight, and more efficient, quieter ventilation. “You’ll never get dollar-for-dollar what you put into a renovation,” says McCurdy. “But with a kitchen or bath, especially, you’ll definitely improve your home’s value and increase its resale appeal.”
Which projects have the biggest payback?
Projects that boost curb appeal, such as replacing siding and windows, add the most value to a home, according to the remodeling cost vs. value report for 2008-09 done by Remodeling Magazine. Maintenance-related projects and moderately priced upgrades provide the most stable payback, the report found.
Projects that recoup only a small percentage of their cost include garage, sun-room and master suite additions, roofing replacement, home-office remodel and installation of a backup power generator.
When resale value is a major factor in a homeowner’s decision to remodel, the best approach is to consult with a reputable local remodeler about actual construction costs, and talk with an experienced Realtor about home prices in the neighborhood, the magazine advises.
Nationwide, the study found the average major kitchen remodel cost $53,235, its resale value was $42,104, and the cost recouped was 79.1%. For a minor kitchen remodel, the resale value was $16, 234 on a $20,320 job, recouping 79.9% of the cost.
A $14,510 bathroom remodel had a resale value of $10,953, and the cost recouped was 75.5%.
If you would like to buy or sell Wilmington, NC real estate, contact Sandy and Steve Thornton for all your home buying and selling needs. Specializing in Wilmington, Leland, Hampstead, Sneads Ferry, Jacksonville, Topsail Island including Surf City, Topsail Beach, North Topsail Beach, Beach and waterfront properties covering New Hanover County, Pender County, Brunswick County and Onslow County areas.
Wednesday, 22 July 2009
Signs of Stability: Housing Market Shows 12th Consecutive Monthly Decrease in Number of Listed Homes
RISMEDIA, July 21, 2009-The U.S. housing market continues to show signs of stabilization with a drop in the number of Multiple Listing Service (MLS)-listed homes for the twelfth consecutive month. The number of single family homes and condos listed for sale according to MLS data decreased in June 2009 from May by 2.1%, bringing the total number of active listings in 28 major U.S. markets to 696,858, according to national real estate brokerage ZipRealty.
Additionally, ZipRealty tracked an increase in the median list price in the 28 markets to $270,440 in June from $270,027 in May. Despite the sequential increase the median list price still decreased 2.72 percent when compared to June 2008.
Other highlights from ZipRealty’s Housing Inventory Index, compiled from local Multiple Listing Service (MLS) data, for June 2009 include:
-Las Vegas, Los Angeles and Phoenix all recorded a decline in inventory which may have contributed to some homes receiving multiple bids.
-Median list prices have flattened or increased in Las Vegas, Phoenix, San Francisco Bay Area and Los Angeles, pointing toward stabilization in those areas.
-While South Florida has substantially fewer homes for sale than last summer, housing inventory there is plentiful. For example, Miami has 27.1% more homes listed for sale compared to Los Angeles even though Miami has a significantly smaller population than Los Angeles.
-California is seeing the most dramatic inventory declines with massive year-over-year inventory reductions: Los Angeles saw a 53.9% decrease year-over-year while Bakersfield/Fresno tracked a 56.2% decrease.
-Several major metros that have been hit hardest by foreclosures had limited inventory in June 2009, which is at levels not seen or experienced in years.
“‘Affordability’ has been the buzz word in real estate this summer, and with a significant number of listed homes bank-owned, we’re seeing instances in some areas of banks dropping prices to generate more offers from buyers,” said ZipRealty President and CEO Patrick Lashinsky. “If the number of home listings continue declining and buyer interest and activity remains strong, we should see sales prices and home values increase as we head into the fall.”
For more information, visit www.ziprealty.com.
If you would like to buy or sell Wilmington, NC real estate, contact Sandy and Steve Thornton for all your home buying and selling needs. Specializing in Wilmington, Leland, Hampstead, Sneads Ferry, Jacksonville, Topsail Island including Surf City, Topsail Beach, North Topsail Beach, Beach and waterfront properties covering New Hanover County, Pender County, Brunswick County and Onslow County areas.
Monday, 20 July 2009
Positive News: U.S. Housing Starts up Second Straight Month in June
RISMEDIA, July 20, 2009-(MarketWatch)-New construction of U.S. houses expanded for the second straight month in June after hitting a record low in April, the Commerce Department estimated Friday.
Starts rose 3.6% in June to a seasonally adjusted 582,000 annualized units stronger than the 531,000 pace expected by economists surveyed by MarketWatch. This is the highest level of starts since last November.
Starts of new single-family homes rose by 14.4% to 470,000 in June, while starts of large apartment units fell 29.4% to 101,000. Building permits, a leading indicator of housing construction, rose 8.7% to a seasonally adjusted annual rate of 563,000. This is the highest level of permits since December.
If you would like to buy or sell Wilmington, NC real estate, contact Sandy and Steve Thornton for all your home buying and selling needs. Specializing in Wilmington, Leland, Hampstead, Sneads Ferry, Jacksonville, Topsail Island including Surf City, Topsail Beach, North Topsail Beach, Beach and waterfront properties covering New Hanover County, Pender County, Brunswick County and Onslow County areas.
Sunday, 19 July 2009
Home Sellers become More Realistic on Home Prices while Realtors Express Greater Optimism about Housing Market
RISMEDIA, May 18, 2009-HomeGain, one of the first websites to provide free instant home values, announced the results of an extensive nationwide survey on home prices based on the responses of over 1,150 Realtors.
The survey shows that 36% of homeowners think their homes should be listed 10 to 20% higher than what their Realtors’ recommend, down from 45% in the first quarter.
Conversely, 64% of homebuyers think that homes are overpriced versus 59% who believed the same in the first quarter.
“Realtors are in a unique position as they get to hear both sides of the home price story - the buyers’ and the sellers’. They then apply their own home valuation analysis based on their understanding of the market which often meets resistance from buyers and sellers,” said Louis Cammarosano, General Manager of HomeGain. “The results of our second quarter Realtor home prices survey indicates that home sellers seem to be getting the message that perhaps their homes are not worth as much as they thought they were, while buyers are expecting to find a bargain on every corner.”
The Realtors surveyed expressed more optimism in the second quarter survey on the direction of home prices than in the first quarter, with 22% of them believing that home values will increase in the next six months versus 11% who believed the same in the first quarter. Twenty-nine percent of survey respondents believe that home prices will fall in the next six months versus 53% who believed the same in the first quarter survey.
“There is major improvement in the number of homes selling,” stated Heather Lawson, Broker Century 21 Watson Real Estate in Genoa, IL. Gillian Goldrich of Coldwell Banker Residential Brokerage in Woodbridge, CT, agreed with Lawson, stating, “Markets are definitely picking up. It seems that buyers are getting off the fence and taking advantage of tremendous buys.”
Fifty-seven percent of Realtors surveyed indicated their approval of Obama’s performance as President. These results mirrored the nationwide results of the Rasmussen Daily Presidential Approval Index. Fifty-five percent of survey respondents believe that the Obama stimulus plan will have or has had no impact on home values versus 45% who believed the same in the first quarter survey.
For more information, visit www.homegain.com.
If you would like to buy or sell Wilmington, NC real estate, contact Sandy and Steve Thornton for all your home buying and selling needs. Specializing in Wilmington, Leland, Hampstead, Sneads Ferry, Jacksonville, Topsail Island including Surf City, Topsail Beach, North Topsail Beach, Beach and waterfront properties covering New Hanover County, Pender County, Brunswick County and Onslow County areas.
Friday, 17 July 2009
New Home Market Remains Weak across the Country
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RISMEDIA, July 17, 2009-New home sales remained very slow at 1.6 sales per month per community, and prices continued falling, according to 304 home building executives managing 2,089 new home communities in 93 metro areas. The John Burns Real Estate Consulting July survey also shows that the biggest challenge is now appraisals, which are frequently coming in well below the agreed upon sale price.
“The Texas region is faring the best, while the Southeast is faring the worst. California had the highest sales rates this month, driven by the expiring state tax credit and recent press regarding rising median home prices,” said Jody Kahn, vice president of Irvine, Calif.-based John Burns Real Estate Consulting.
Some emerging positive signs include:
- Some nominal price increases in the best locations in Washington D.C. and California,
- Reduced inventory levels and less competition,
- Higher expected sales for the next 6 months,
- Distressed finished lot purchasing opportunities,
- Increasing construction, and
- Cancellation rates that have been dropping.
In addition to the appraisals, negative signs include:
- Continued pricing declines driven largely by the foreclosure competition,
- The transition into the summer sales season, which is frequently a slower period in many markets,
- The expiration of the California and Utah tax credits, and
- The federal tax credit deadline is approaching.
Rising mortgage rates were not mentioned by many as a problem, according to CEO John Burns. “Although the home builder stocks have declined due to rising mortgage rates, and many of our investor clients have assumed that rising mortgage rates have impacted sales, rising mortgage rates were rarely mentioned in the builder commentary this month.”
Survey Highlights:
- Finished-Lot-To-Home-Price-Ratio is averaging 21%. By asking builders to do some math in a multi-part question, we calculated the average finished lot to home price ratio.
- The overall average ratio was 21% and 20%-33% was very typical. Representing each end of the spectrum is Ventura County, California with the highest ratio at 44%, while Port St. Lucie, Florida was just 4%. The long-time industry rule of thumb is that finished lots are 25% of the home price, and they probably reached 35% of the home price at the peak of the cycle in 2005 (our best guess).
- Pricing net of incentives continues to decline, at a slower rate: Builders in every region report prices remain under pressure from foreclosures and resales. The best located projects in Washington D.C. have been reporting some price stability for a couple of months, and we are now hearing reports of emerging price stability in some parts of California.
- Average net sales per community is flat at 1.6 sales per community per month nationally (4 would be the norm). Many private builders have sold their inventory but are unable to finance new starts, which may be dragging down the sales rate in some locations.
- Ratings of current sales and traffic were flat from last month, while expected sales rose slightly but remain low. A growing number of builders report traffic is off from May, but remains at elevated levels from one year ago. After dropping slightly for May and June, the national rating of expected sales rose slightly this month, and rests closer to Fair. The gain was mainly driven by improved survey ratings in the Texas, Midwest and Southern Florida regions.
- More builders start homes. 71% of our participants started between 1 and 4 homes this month. Only 20% reported no starts, down from 25% in June and 28% in May.
- Inventory declining slightly. The average number of unsold, finished units per community is 3.5 units, down from 4.0 last month. The Southwest, Northern California, and both Northern and Southern Florida report the most substantial declines in inventory per community.
For more information visit: www.realestateconsulting.com
If you would like to buy or sell Wilmington, NC real estate, contact Sandy and Steve Thornton for all your home buying and selling needs. Specializing in Wilmington, Leland, Hampstead, Sneads Ferry, Jacksonville, Topsail Island including Surf City, Topsail Beach, North Topsail Beach, Beach and waterfront properties covering New Hanover County, Pender County, Brunswick County and Onslow County areas.
Wednesday, 15 July 2009
5 Tips to Remedy Lawn Care Short-Comings
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 RISMEDIA, July 15, 2009-With record low mortgage rates, expanded FHA loans and tax credit incentives, many Americans have plunged into first-time home ownership. In fact, the National Association of Realtors reports that first-time buyers accounted for 29 percent of existing home sales in the last month. But while taking advantage of the current incentives, many first-time buyers don’t think of everything that comes along with home ownership - including how to take care of their yard so they remain rightfully proud of their new castle.
Briggs & Stratton Corp., a leading manufacturer of lawn mower engines, offers these lawn care tips for even the most challenged green thumb.
Choose the right mower.
Purchase a mower with a quality engine. Elements to consider are torque, emissions and ease in starting. Briggs & Stratton engines are found in eight of the top 10 selling lawn mowers brands. To understand more about why engines make a difference, visit www.enginesmatter.com.
Never cut more than one-third of the grass blade during any one mowing.
By following this rule, the remaining two-thirds of the plant will develop deep roots and spread out, eventually creating a dense, healthy turf. Using this technique, of course, means shorter intervals between mowings during high growth times, but a healthy lawn is the best medicine for preventing weeds and disease.
Alternate your mowing pattern.
Try not to follow the same path each time you mow. Think of a clock. Start at the 12 o’clock position and mow to the 6 o’clock position. The next time you mow, begin at the 9 o’clock position and mow to the to 3 o’clock position. The third time, mow from 1 o’clock to 7 o’clock, etc. Changing the mowing pattern every time you mow will keep the turf and soil from compacting and prevent wheel patterns in your lawn.
Water early in the day.
Watering between 4 and 9 a.m. helps ensure that the sun won’t rob moisture from your lawn. It also gives your lawn the best chance to dry in the morning. Wet grass at night can lead to disease. Most lawns need about 1-2 inches of water a week to stay healthy.
Avoid a fertilizer overdose.
Even good medicine causes harm when used improperly, so avoid doubling the recommended rates of fertilizer as well as seed, herbicide, insecticide, etc. One pound of water-soluble nitrogen per 1,000 square feet is the maximum amount established lawns should receive at one time.
RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.
If you would like to buy or sell Wilmington, NC real estate, contact Sandy and Steve Thornton for all your home buying and selling needs. Specializing in Wilmington, Leland, Hampstead, Sneads Ferry, Jacksonville, Topsail Island including Surf City, Topsail Beach, North Topsail Beach, Beach and waterfront properties covering New Hanover County, Pender County, Brunswick County and Onslow County areas.
Friday, 10 July 2009
First-time Home Buyer? Get an Inspection
RISMEDIA, July 9, 2009-As many consumers are considering buying a house to take advantage of first-time home buyer tax credits, the American Society of Home Inspectors (ASHI) reminds them about the importance of getting a professional home inspection. According to the IRS, the first-time home buyer tax credit allows taxpayers who have not owned another principal residence at any time during the three years prior to the date of purchase to deduct the lesser of $8,000 or 10% of the purchasing price of their home if they purchase before Dec. 1, 2009. This has encouraged many young professionals in their 20s and 30s to consider buying a house or a condominium.
“To minimize unpleasant surprises and unexpected difficulties, home buyers will want to learn as much as they can before they buy,” said Bill Richardson, 2009 ASHI President. “A home inspection may identify the need for major repairs or builder oversights, as well as the need for maintenance to keep the house or condominium in good shape. With many choices on the market right now, including foreclosures and short sales that can sometimes be riskier for buyers, an inspection is especially important.”
A standard home inspector’s report will cover the condition of the home’s heating system; central air conditioning system (temperature permitting); interior plumbing and electrical systems; the roof, attic and visible insulation; walls, ceilings, floors, windows and doors; the foundation, basement and structural components. The report will include covered systems and components the home inspector finds that are not functioning properly, significantly deficient, unsafe, or are near the end of their service lives.
According to a GAO (Government Accountability Office) study*, many home buyers do not know that appraisals are not home inspections and that the Department of Housing and Urban Development recommends that buyers obtain a voluntary home inspection. Many also think that FHA performs inspections automatically or do not realize that they need to initiate an inspection.
“Home buyers should know a professional home inspection is an examination of the current condition of a house,” Richardson said. “It is not an appraisal, which determines market value.”
Richardson also said that consumers should know that they can hire a home inspector after they’ve made an offer on a home and before closing. They also can request to have their offer be contingent on the findings of a home inspection, and have it stated in the contract. In some cases, home buyers also may be able to renegotiate their offers because of the results of the home inspection.
ASHI members applauded Congress for reinforcing the importance of a home inspection with the Mortgage Reform and Anti-Predatory Lending Act, which recently passed by a wide margin in the House of Representatives. Several provisions in the bill, which were supported by ASHI and championed on Capitol Hill by Rep. Nydia Velazquez (D-NY), advocate for first-time and low-income home buyers.
The Mortgage Reform and Anti-Predatory Lending Act includes language requiring the HUD to:
- Inform potential home buyers in both English and Spanish of the availability and importance of obtaining an independent home inspection;
- Publish HUD’s “For Your Protection: Get A Home Inspection” and “Ten Important Questions to Ask Your Home Inspector” advisories; and
- Create a new booklet for home buyers advising them to obtain a voluntary home inspection addressing both FHA and non-FHA home sales.
- Home buyers can locate their closest ASHI inspector to schedule an inspection through ASHI’s website at www.ASHI.org. ASHI’s “Find an Inspector” tool allows homeowners to locate an inspector in their area by language or services provided.
For more information, visit www.ASHI.org.
*Study conducted by surveying the experiences of FHA loan customers.
If you would like to buy or sell Wilmington, NC real estate, contact Sandy and Steve Thornton for all your home buying and selling needs. Specializing in Wilmington, Leland, Hampstead, Sneads Ferry, Jacksonville, Topsail Island including Surf City, Topsail Beach, North Topsail Beach, Beach and waterfront properties covering New Hanover County, Pender County, Brunswick County and Onslow County areas.
Friday, 03 July 2009
RISMEDIA, 2009-Century 21 Real Estate LLC, the franchisor of one of the world’s largest residential real estate sales organizations, announced the results of its recently commissioned first-time home buyer survey. The survey found that more than three-quarters (78%) of potential first-time home buyers say that now is a good time to buy a home, despite widespread concern about the economy. Out of the 1,000 prospective U.S. first-time home buyers surveyed for the CENTURY 21 First-Time Home Buyer Survey, 68% think now is a better time to buy than six months ago. Prices are the driving motivation for potential first-time home buyers with more than eight out of ten first-time home buyers (85%) saying they consider current home prices affordable and 73% citing that taking advantage of current prices is a major factor in their decision to buy. Interestingly, potential first-time buyers are still split between “being willing to consider an offer now” (42%) and “waiting for prices to go down before they seriously consider making a purchase” (48%).
“Current pricing, rates and incentives, such as the First Time Homebuyer Tax Credit, provide tremendous opportunities for first-time home buyers to get into the market,” said Tom Kunz, Century 21 Real Estate president and CEO. “Our research shows that while consumers still have concerns about the future of the economy, many are actively considering their options as we move into the spring selling season.”
Among the survey’s other key findings:
Bargains in the marketplace are providing additional options for buyers to consider. 56% of potential first-time home buyers are considering purchasing a foreclosed or short sale home, and 63% are open to purchasing either a “fixer-upper” or “as-is” home.
When asked to rate the features that they look for when choosing a home, price is the primary consideration with 87% saying this feature is “very important,” followed closely by neighborhood safety (80%) and the condition of the home (71%).
Having enough money for a down payment is a top concern for potential first-time home buyers as nearly half (46%) said they are “very worried” about the issue.
Most respondents (86%) are in the market for single family homes.
Available Government Incentives
In addition to affordable home prices and mortgage rates, the survey also showed strong interest in taking advantage of the recent government stimulus. More than three-quarters (77%) of potential first-time home buyers say they are more likely to buy a home in the next six months because of the $8,000 first-time home buyer tax credit offered in the American Recovery and Reinvestment Act of 2009.
Affordable Mortgage Rates
Perception about the lending market is a key concern for prospective first-time home buyers. Current mortgage rates are considered to be affordable by approximately three-quarters (72%) of respondents and 62% recognize that rates are lower than a year ago. However, 75% of potential first-time home buyers believe it is difficult to get a home loan right now and 74% think it is harder to get a loan now, than at the same time last year.
“Traditional mortgage investors, Fannie Mae, Freddie Mac, FHA and VA, are receiving significant financial backing from the federal government, keeping interest rates low and mortgage funds available for qualified buyers,” said Marshall Gayden, senior vice president of Century 21 Mortgage®. “Home buyers who have a stable job history of at least two years, solid credit (620 and above) and down payment money that can be documented (3.5% on FHA loans) are well positioned to secure a mortgage in today’s credit environment.”
Understanding the Buying Process
Prospective first-time home buyers also indicate that there is a real need for someone who can provide accurate and reliable information while they look for a home. When asked about the real estate transaction process, more than half (59%) of potential buyers rated their understanding of the process as either “fair” or “poor.”
“Between home loans, the closing process and understanding the new government stimulus, real estate professionals play a vital role in working with first-time home buyers to help them navigate the current market,” said Kunz. “Every individual situation is different, and consumers should use their Realtor as a trusted advisor to seek opportunities, get educated on the process and make informed decisions.”
In addition, the survey asked potential buyers which factors are most relevant in their decision to choose a home:
First-Time Home Buyers’ Top Reasons for Buying (% saying major factor):
Taking advantage of current housing prices 73%
Moving to a bigger living space 60%
Having a more suitable place to start or raise family 56%
Buying a home as an investment 47%
Moving to a better neighborhood 44%
Moving to better location for work 28%
If you would like to buy or sell Wilmington, NC real estate, contact Sandy and Steve Thornton for all your home buying and selling needs. Specializing in Wilmington, Leland, Hampstead, Sneads Ferry, Jacksonville, Topsail Island including Surf City, Topsail Beach, North Topsail Beach, Beach and waterfront properties covering New Hanover County, Pender County, Brunswick County and Onslow County areas.
Thursday, 02 July 2009
RISMEDIA, July 2, 2009-Pending home sales show a sustained uptrend, rising for four consecutive months with very favorable housing affordability and a first-time buyer tax credit boosting activity, according to the National Association of Realtors®.
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in May, increased 0.1 percent to 90.7 from an upwardly revised reading of 90.6 in April, and is 6.7 percent higher than May 2008 when it was 85.0. The last time there were four consecutive monthly gains was in October 2004.
Lawrence Yun, NAR chief economist, cautions that there could be delays in the number of contracts that go to closing. “Closed existing-home sales have improved but are coming in lower than expected because some contracts are delayed or falling through from the application of new appraisal rules for many transactions,” he said. “Rises in contract activity show buyers are becoming more active even as they face much more stringent loan underwriting standards. Speedy clarification of the appraisal rules could smooth a housing market recovery and support the overall economy.”
The Pending Home Sales Index in the Northeast rose 3.1 percent to 80.9 in May and is 6.8 percent above a year ago. In the Midwest the index slipped 1.3 percent to 89.2 but is 11.4 percent above May 2008. The index in the South declined 1.7 percent to 92.6 in May but is 7.9 percent higher than a year ago. In the West the index rose 2.2 percent to 96.9 and is 0.7 percent above May 2008.
NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said the appraisal issue is complicated. “We see that distressed homes often are selling for 20 percent less than normal homes in the same area, but some appraisals don’t distinguish between traditional homes and distressed property,” he said. “In many cases appraisers from outside the area are being used, but as everyone knows real estate is local and appraisals should be done by an expert with local expertise.”
McMillan said sellers shouldn’t hesitate to speak with an appraiser about their home. “Sellers should feel free to tell an appraiser about improvements and renovations to their home, and how it compares with other homes in the neighborhood,” he said.
“Also, if recent sales in the neighborhood were discounted, but not similar to your home in terms of quality or condition, that should be pointed out. It wouldn’t hurt to put all this in writing, especially if an appraiser is not familiar with your area. A Realtor® could offer guidance and information to help you with this process.”
NAR’s Housing Affordability Index remains at historic highs. The affordability index fell to 171.6 in May from an upwardly revised 178.8 in April, which was the highest on record dating back to 1970. “Under these conditions the typical family would devote only 14.6 percent of gross income to mortgage principal and interest, which is one of the lowest percentages on record,” Yun said.
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.
A median-income family, earning $60,800, could afford a home costing $296,700 in May with a 20 percent downpayment, assuming 25 percent of gross income is devoted to mortgage principal and interest. Affordability conditions for first-time buyers with the same income and small downpayments are roughly 80 percent of what a median-income family can afford. The affordable price was significantly higher than the median existing single-family home price in May, which was $172,900.
The first-time buyer tax credit also is benefiting the market. “Strong activity by entry level buyers is helping to absorb inventory and allow some existing owners to make a trade,” Yun said.
Existing-home sales should trend up through the end of the year, with normal local market differences. “The big question is how much the appraisal issue will impact the ability of contracts to go to closing,” Yun said. “We are currently conducting a study to assess the degree to which new appraisal rules are impacting home sales.”
If you would like to buy or sell Wilmington, NC real estate, contact Sandy and Steve Thornton for all your home buying and selling needs. Specializing in Wilmington, Leland, Hampstead, Sneads Ferry, Jacksonville, Topsail Island including Surf City, Topsail Beach, North Topsail Beach, Beach and waterfront properties covering New Hanover County, Pender County, Brunswick County and Onslow County areas.
Thursday, 02 July 2009
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.
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