Source: Housingwire
By Kerri Ann Panchuk
Average home prices grew by 2.2% from April to May, according to the latest Standard & Poor's/Case-Shiller Home Price Indices report.
The 2.2% price increase is tied to both the 10- and 20-city composite indices studied by S&P.
"The 10- and 20-city composites were each up 2.2% for the month and recorded respective annual rates of decline of 1% and 0.7%, compared to May 2011," S&P said Tuesday. "While still negative, these annual changes are the best we’ve seen since in at least 18 months."
The S&P Case Shiller also noted that 17 of the 20 metropolitan areas studied in its report saw increases in annual price returns when comparing the months of April and May.
The cities where prices continued to waiver included Boston, Charlotte and Detroit, with their annual price returns hitting -0.1%, a slight 0.9% and 0.6%, respectively.
Atlanta remains a bear market with the city posting a double-digit negative annual price return rate of -14.5%. Still, Case-Shiller calls that change greatly improved from the negative 17% annual decline reported in Atlanta back in April.
Phoenix, on the other hand, has gone from cold to hot with prices on the rise.
"Taking a closer look at the cities, Phoenix again posted the best annual return," the S&P Case-Shiller said. "Average home prices in that region were up 11.5% versus May 2011. It was one of the hardest hit cities in the collapse, and prices are still more than 50% below their June 2006 peak, but the past five months have been positive for that market."
Other formerly cold markets with positive annual return rates included Miami and Tampa.
Looking at the latest data, the S&P Case-Shiller is cautiously optimistic about home prices and the real estate market.
"June data for existing home sales, new home sales, housing starts and mortgage default rates were a bit mixed, but all are better than their year-ago levels," the report said. "The housing market seems to be stabilizing, but we are definitely in a wait-and-see mode for the next few months."
Capital Economics released a statement on the report, saying "the fourth successive rise in the Case-Shiller measure of seasonally-adjusted house prices means that prices are experiencing more than just their usual seasonal lift." The research firm added, "Moreover, tight supply conditions and an underlying improvement in demand suggest that prices are not going to give up all of these gains in the second half of the year."
URL to original article: http://www.housingwire.com/news/average-home-prices-increase-22-may-case-shiller
For further information on Fresno Real Estate check: http://www.londonproperties.com
Tuesday, July 31, 2012
CoreLogic: Annual foreclosures drop 24%
Source: Housingwire
By Kerri Ann Panchuk
The U.S. ended the month of June with 60,000 completed foreclosures, a 24% drop from year ago levels when 80,000 foreclosures were reported for the same month, according to a report from mortgage data analytics firm CoreLogic ($23.15 0.07%). The steep drop puts completed foreclosures at a level not seen since 2007. Santa Ana, Calif,-based CoreLogic says the drop in completed foreclosures is good news, but other issues in the housing market remain. "The decline in the flow of completed foreclosures to pre-financial crisis levels is more welcome news pointing to an emerging housing market recovery," said Anand Nallathambi, president and CEO of CoreLogic. "However, we believe even more can be done to reduce the inventory of foreclosures by decreasing the level of regulatory uncertainty and expanding alternatives to foreclosure." Mark Fleming, chief economist for CoreLogic, said, "While completed foreclosures and real-estate owned (REO) sales virtually offset each other over the past four months, producing static levels of foreclosure inventory for most of this year, they are beginning to diverge again. Over the last two months REO sales declined while completed foreclosures leveled out. So we could see foreclosure inventory rising going forward." About 1.4 million homes, or 3.4% of all homes with a mortgage, were in the nation's foreclosure inventory for June. That is down from 1.5 million in June of 2011.
URL to original article: http://www.housingwire.com/news/foreclosures-drop-24-year-ago-levels-june
For further informaion on Fresno Real Estate check: http://www.londonproperties.com
By Kerri Ann Panchuk
The U.S. ended the month of June with 60,000 completed foreclosures, a 24% drop from year ago levels when 80,000 foreclosures were reported for the same month, according to a report from mortgage data analytics firm CoreLogic ($23.15 0.07%). The steep drop puts completed foreclosures at a level not seen since 2007. Santa Ana, Calif,-based CoreLogic says the drop in completed foreclosures is good news, but other issues in the housing market remain. "The decline in the flow of completed foreclosures to pre-financial crisis levels is more welcome news pointing to an emerging housing market recovery," said Anand Nallathambi, president and CEO of CoreLogic. "However, we believe even more can be done to reduce the inventory of foreclosures by decreasing the level of regulatory uncertainty and expanding alternatives to foreclosure." Mark Fleming, chief economist for CoreLogic, said, "While completed foreclosures and real-estate owned (REO) sales virtually offset each other over the past four months, producing static levels of foreclosure inventory for most of this year, they are beginning to diverge again. Over the last two months REO sales declined while completed foreclosures leveled out. So we could see foreclosure inventory rising going forward." About 1.4 million homes, or 3.4% of all homes with a mortgage, were in the nation's foreclosure inventory for June. That is down from 1.5 million in June of 2011.
URL to original article: http://www.housingwire.com/news/foreclosures-drop-24-year-ago-levels-june
For further informaion on Fresno Real Estate check: http://www.londonproperties.com
Friday, July 27, 2012
Limoneira buys 230 acres of Lindsay citrus for $1.3 M
Source: The Business Journal
Santa Paula, Calif.-based Limoneira, a major citrus and avocado grower-shipper, has acquired more citrus property in Lindsay in an effort to build its agricultural holdings and production in the San Joaquin Valley. Limoneira purchased land and water rights for 230 acres of citrus property located adjacent to Sheldon Orchards where it already has 200 acres of citrus property that it acquired in March. Limoneira also purchased 125 acres of citrus trees in Porterville in April. Of the 230 acres just acquired, 150 acres will be planted with lemons. The company believes it now has capability of producing 1,000 cartons per acre. “With the close of this transaction, we will have added over 1,3000 acres of productive agriculture this year, which is in line with our overall strategy to leverage our expertise in managing premium agriculture properties,” said Harold Edwards, president and chief executive officer of Limoneira in a release. Alex Teague, senior vice president of Limoneira, said the company would continue to add to its agriculture acreage as part of its long-term growth strategy.
URL to original article: http://www.thebusinessjournal.com/news/agriculture/2739-limoneira-buys-230-acres-of-lindsay-citrus-for-13-m
For further information on Fresno Real Estate check: http://www.londonproperties.com
Santa Paula, Calif.-based Limoneira, a major citrus and avocado grower-shipper, has acquired more citrus property in Lindsay in an effort to build its agricultural holdings and production in the San Joaquin Valley. Limoneira purchased land and water rights for 230 acres of citrus property located adjacent to Sheldon Orchards where it already has 200 acres of citrus property that it acquired in March. Limoneira also purchased 125 acres of citrus trees in Porterville in April. Of the 230 acres just acquired, 150 acres will be planted with lemons. The company believes it now has capability of producing 1,000 cartons per acre. “With the close of this transaction, we will have added over 1,3000 acres of productive agriculture this year, which is in line with our overall strategy to leverage our expertise in managing premium agriculture properties,” said Harold Edwards, president and chief executive officer of Limoneira in a release. Alex Teague, senior vice president of Limoneira, said the company would continue to add to its agriculture acreage as part of its long-term growth strategy.
URL to original article: http://www.thebusinessjournal.com/news/agriculture/2739-limoneira-buys-230-acres-of-lindsay-citrus-for-13-m
For further information on Fresno Real Estate check: http://www.londonproperties.com
Rental vacancies at lowest rate since 2002
Source: Housingwire
By Jessica Huseman
The national residential rental vacancy rate in the second quarter was at 8.6% from 8.8% in the first quarter, the lowest second quarter reading since 2002, the Department of Commerce Census Bureau reported on Friday. While the diminishing supply is bad news for the multitudes of former homeowners now looking to rent. The asking rent for the quarter was at $716, slightly cheaper than the first quarter's $721 but above 2Q 2011's $684. While homeowners may face higher rent given the diminishing vacancy rate, Capital Economics said in a statement that the below-trend-level vacancy rate of single-family rental homes is "likely to come as welcome news to the growing number of institutional investors who are building portfolios of single-family rental properties." According to the Commerce Department, the rental vacancy rate was the lowest in the Northeast at 6.7%, and highest in the South at 11%. The rates in the Northeast and West were not statistically different from each other, and while rental vacancy rate in the Midwest was lower than this time last year, the rates in the Northeast, South and West were not statistically different from the corresponding 2011 quarter.
URL to original article: http://www.housingwire.com/news/q2-rental-vacancies-lowest-rate-2002
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Jessica Huseman
The national residential rental vacancy rate in the second quarter was at 8.6% from 8.8% in the first quarter, the lowest second quarter reading since 2002, the Department of Commerce Census Bureau reported on Friday. While the diminishing supply is bad news for the multitudes of former homeowners now looking to rent. The asking rent for the quarter was at $716, slightly cheaper than the first quarter's $721 but above 2Q 2011's $684. While homeowners may face higher rent given the diminishing vacancy rate, Capital Economics said in a statement that the below-trend-level vacancy rate of single-family rental homes is "likely to come as welcome news to the growing number of institutional investors who are building portfolios of single-family rental properties." According to the Commerce Department, the rental vacancy rate was the lowest in the Northeast at 6.7%, and highest in the South at 11%. The rates in the Northeast and West were not statistically different from each other, and while rental vacancy rate in the Midwest was lower than this time last year, the rates in the Northeast, South and West were not statistically different from the corresponding 2011 quarter.
URL to original article: http://www.housingwire.com/news/q2-rental-vacancies-lowest-rate-2002
For further information on Fresno Real Estate check: http://www.londonproperties.com
Wednesday, July 25, 2012
Clovis Chamber reverses stance on high-speed rail
Source: The Business Journal
The Clovis Chamber of Commerce announced that it has reversed its previous support of California's high-speed rail project. According to a letter by Chamber President and CEO Mark Blackney, the nearly 520-mile envisioned rail system linking San Francisco to Los Angeles is far removed from the plan first proposed in 2008. Blackney cited increased costs, from $43 billion spelled out in Proposition 1A to nearly $69 billion currently, were key in the Chamber's reconsideration. "When approved in 2008, funding was expected from the federal government," Blackney stated. "However, since then, the economy has deteriorated so those revenues are no longer guaranteed. That leaves the bulk of funding on the backs of Californians who are struggling with an uncontrollable debt." Projected ticket costs have also ballooned, Blackney pointed out, going from $55 between Los Angeles and San Francisco to $110. Ridership, originally projected by the California High-Speed Rail Authority at more than 42 million a year, has been shown to be overinflated, he added, as have travel times, estimated at 2 hours and 40 minutes across the length of the rail system. The letter also said the rosy economic impacts touted by rail officials will also not pan out. Last week, Gov. Jerry Brown recently signed legislation approving around $8 billion in funding for the bullet train project, including $2.6 billion in voter-approved bonds and $3.2 billion in federal cash to build the first 130-mile section between Madera and Bakersfield.
URL to original article: http://thebusinessjournal.com/news/transportation/2698-clovis-chamber-reverses-stance-on-high-speed-rail
For further information on Fresno Real Estate check: http://www.londonproperties.com
The Clovis Chamber of Commerce announced that it has reversed its previous support of California's high-speed rail project. According to a letter by Chamber President and CEO Mark Blackney, the nearly 520-mile envisioned rail system linking San Francisco to Los Angeles is far removed from the plan first proposed in 2008. Blackney cited increased costs, from $43 billion spelled out in Proposition 1A to nearly $69 billion currently, were key in the Chamber's reconsideration. "When approved in 2008, funding was expected from the federal government," Blackney stated. "However, since then, the economy has deteriorated so those revenues are no longer guaranteed. That leaves the bulk of funding on the backs of Californians who are struggling with an uncontrollable debt." Projected ticket costs have also ballooned, Blackney pointed out, going from $55 between Los Angeles and San Francisco to $110. Ridership, originally projected by the California High-Speed Rail Authority at more than 42 million a year, has been shown to be overinflated, he added, as have travel times, estimated at 2 hours and 40 minutes across the length of the rail system. The letter also said the rosy economic impacts touted by rail officials will also not pan out. Last week, Gov. Jerry Brown recently signed legislation approving around $8 billion in funding for the bullet train project, including $2.6 billion in voter-approved bonds and $3.2 billion in federal cash to build the first 130-mile section between Madera and Bakersfield.
URL to original article: http://thebusinessjournal.com/news/transportation/2698-clovis-chamber-reverses-stance-on-high-speed-rail
For further information on Fresno Real Estate check: http://www.londonproperties.com
New home sales fell 8.4% in June
Source: Housingwire
New home sales declined 8.4% to 350,000 units in June, down from a revised rate of 382,000 the previous month, according to a new report from the U.S. Census Bureau and the Department of Housing and Urban Development. The news is somewhat disappointing for a real estate market that has been battling macroeconomic headwinds while still managing to gain from low interest rates and a robust inventory of affordable homes. Over last year, the housing market still looks more robust. New home sales in June were up 15.1% from the year ago estimate of 304,000. At the moment, the market is seeing a 4.9-month supply of homes at its current sales rate. The median sales price in June hit $232,000, while the average price hovered at $273,900.
URL to original article: http://www.housingwire.com/news/new-home-sales-fell-84-june
For further information on Fresno Real Estate check: http://www.londonproperties.com
New home sales declined 8.4% to 350,000 units in June, down from a revised rate of 382,000 the previous month, according to a new report from the U.S. Census Bureau and the Department of Housing and Urban Development. The news is somewhat disappointing for a real estate market that has been battling macroeconomic headwinds while still managing to gain from low interest rates and a robust inventory of affordable homes. Over last year, the housing market still looks more robust. New home sales in June were up 15.1% from the year ago estimate of 304,000. At the moment, the market is seeing a 4.9-month supply of homes at its current sales rate. The median sales price in June hit $232,000, while the average price hovered at $273,900.
URL to original article: http://www.housingwire.com/news/new-home-sales-fell-84-june
For further information on Fresno Real Estate check: http://www.londonproperties.com
U.S. home values hit bottom, turn back up: Zillow
Source: Housingwire
Home values in the U.S. reached their bottom in recent months and are gradually rising again, according to a new report from Zillow. The real estate data provider said its second-quarter Real Estate Market Report shows prices rising on an annual basis for the first time in five years. In fact, the firm's price index edged up 0.2% over last year in the second quarter with the average sales price hitting $149,300. Zillow claims values rose for four consecutive months in a row. In the U.S., one-third of the metros surveyed, or 53 of 167 markets, saw annual price increases. The largest jump occurred in Phoenix, where prices rose 12.1% from a year earlier in 2Q. "After four months with rising home values and increasingly positive forecast data, it seems clear that the country has hit a bottom in home values," said Zillow chief economist Dr. Stan Humphries. "The housing recovery is holding together despite lower-than-expected job growth, indicating that it has some organic strength of its own." About 67 markets are expected to see increases in price values over the course of the next year, according to Zillow's Home Value Forecast. Again, one of the markets expected to see steep growth is Phoenix with the forecast estimating price gains of 9.9%. Foreclosures in the second quarter fell with only 5.8 out of every 10,000 homes lost to foreclosure in June, Zillow said. The data firm claims foreclosures have been on the decline since January when 7.9 out of every 10,000 homes were lost to foreclosure. "This number is expected to increase in the future, as foreclosure starts have increased since the completion of the National Foreclosure Settlement," Zillow said. Foreclosure re-sales also fell from 18.8% of all sales in February to 15.6% in June.
URL to original article: http://www.housingwire.com/content/us-home-values-hit-bottom-turn-back-zillow
For further information on Fresno Real Estate check: http://www.londonproperties.com
Home values in the U.S. reached their bottom in recent months and are gradually rising again, according to a new report from Zillow. The real estate data provider said its second-quarter Real Estate Market Report shows prices rising on an annual basis for the first time in five years. In fact, the firm's price index edged up 0.2% over last year in the second quarter with the average sales price hitting $149,300. Zillow claims values rose for four consecutive months in a row. In the U.S., one-third of the metros surveyed, or 53 of 167 markets, saw annual price increases. The largest jump occurred in Phoenix, where prices rose 12.1% from a year earlier in 2Q. "After four months with rising home values and increasingly positive forecast data, it seems clear that the country has hit a bottom in home values," said Zillow chief economist Dr. Stan Humphries. "The housing recovery is holding together despite lower-than-expected job growth, indicating that it has some organic strength of its own." About 67 markets are expected to see increases in price values over the course of the next year, according to Zillow's Home Value Forecast. Again, one of the markets expected to see steep growth is Phoenix with the forecast estimating price gains of 9.9%. Foreclosures in the second quarter fell with only 5.8 out of every 10,000 homes lost to foreclosure in June, Zillow said. The data firm claims foreclosures have been on the decline since January when 7.9 out of every 10,000 homes were lost to foreclosure. "This number is expected to increase in the future, as foreclosure starts have increased since the completion of the National Foreclosure Settlement," Zillow said. Foreclosure re-sales also fell from 18.8% of all sales in February to 15.6% in June.
URL to original article: http://www.housingwire.com/content/us-home-values-hit-bottom-turn-back-zillow
For further information on Fresno Real Estate check: http://www.londonproperties.com
RealtyTrac: Houses purchased for investment rise 65%
Source: Housingwire
Homes purchased for investment purposes rose 65% in 2011 as investors looking for a place to park their cash sought out bank-owned properties, according to the latest Foreclosure News Report for RealtyTrac. Last year, 1.2 million U.S. properties were acquired for investment purposes, up from 749,000 in 2010. "Hundreds of thousands of these decrepit properties can't be financed because banks won't lend money to regular homebuyers (or investors) to purchase them, leaving cash investors as the only buyers," wrote Octavio Nuiry, who composed the latest Foreclosure News Report for RealtyTrac. Nuiry cited data from the National Association of Realtors, which essentially concluded that investment homebuyers in 2011 had a median age of 50 and earned approximately $86,100. The government-sponsored enterprises led the way this year by having the most REO sales year-to-date, RealtyTrac said. The agencies are followed by The Bank of New York Mellon ($20.51 0.11%), Bank of America ($7.02 -0.02%), Deutsche Bank ($27.38 -0.791%), US BankCorp. ($33.25 -0.215%), Wells Fargo ($33.05 -0.185%), Chase ($34.99 0.26%), HSBC Holdings ($40.16 0.47%) and Citigroup ($25.73 0.49%).
URL to original article: http://www.housingwire.com/content/reos-are-hot-commodities-opportunity-starved-investors
For further information on Fresno Real Estate check: http://www.londonproperties.com
Homes purchased for investment purposes rose 65% in 2011 as investors looking for a place to park their cash sought out bank-owned properties, according to the latest Foreclosure News Report for RealtyTrac. Last year, 1.2 million U.S. properties were acquired for investment purposes, up from 749,000 in 2010. "Hundreds of thousands of these decrepit properties can't be financed because banks won't lend money to regular homebuyers (or investors) to purchase them, leaving cash investors as the only buyers," wrote Octavio Nuiry, who composed the latest Foreclosure News Report for RealtyTrac. Nuiry cited data from the National Association of Realtors, which essentially concluded that investment homebuyers in 2011 had a median age of 50 and earned approximately $86,100. The government-sponsored enterprises led the way this year by having the most REO sales year-to-date, RealtyTrac said. The agencies are followed by The Bank of New York Mellon ($20.51 0.11%), Bank of America ($7.02 -0.02%), Deutsche Bank ($27.38 -0.791%), US BankCorp. ($33.25 -0.215%), Wells Fargo ($33.05 -0.185%), Chase ($34.99 0.26%), HSBC Holdings ($40.16 0.47%) and Citigroup ($25.73 0.49%).
URL to original article: http://www.housingwire.com/content/reos-are-hot-commodities-opportunity-starved-investors
For further information on Fresno Real Estate check: http://www.londonproperties.com
Tuesday, July 24, 2012
Reverse mortgages as popular as IRAs in 10 years: Sente Mortgage
Source: Housingwire
By Justin T. Hilley
Reverse mortgages will be as ubiquitous as individual retirement accounts in 10 years because many folks will have more money in the former than in the latter, says Scott Norman, vice president of Austin, Texas-based Sente Mortgage's reverse mortgage division. Norman says the forces of supply & demand and education will serve as the engine for his prediction's materialization that every extended family will have a member with a reverse mortgage. “There’s still a great deal of education — for financial planners, certified public accountants, home health care professionals, real estate attorneys — that needs to be done,” Norman says. “We haven’t even scratched the surface yet.” Reverse mortgages let borrowers convert a portion of their home equity into cash. However, unlike a traditional home equity loan or second mortgage, borrowers can hold off on repayment until they no longer live in the home, fail to meet the obligations of the mortgage or pass away. The demographics point to a robust consumer base for the reverse mortgage industry. The population of individuals 65 and up increased 15% to 40 million in 2010 from 35 million in 2000, according to the Department of Health and Human Services. It projects a 36% increase to 55 million in 2020. And by 2030, about 72.1 million older Americans, over twice their number in 2000, will exist — about 19% of the U.S. population. Norman says Sente Mortgage views reverse mortgages as a product with unlimited upside, a natural financial planning option for aging Americans within the housing economy. He favors the Home Equity Conversion Mortgage Saver, a type of reverse mortgage offered by the Federal Housing Administration that requires drastically lower upfront fees — just .01% of the home value — than the HECM Standard, but reduces the amount of money available to the borrower. “As the baby boomers continue to age and home values stabilize, the question is ‘How are they going to retire?’’ Norman says. “Pull up average 401(K), average savings amount, average debt. These seniors aren’t going to be able to retire at a fraction of what they’re living today. I don’t think I’m exaggerating." “I’m not saying a reverse mortgage is for everybody, but it is certainly an option that may be the most realistic for a majority of the seniors in the next five to ten years,” Norman says. “It’s safe, it’s cost efficient. The biggest complaint you have regarding reverse mortgages is not the product, but that it's expensive to grow old in America.” They're also confusing, according to the Consumer Financial Protection Bureau, which released a report highlighting the risks for American consumers as they struggle to understand reverse mortgages. “Reverse mortgages are complex and have the potential to become a much more pervasive product in the coming years as the baby boomer generation enters retirement,” said CFPB Director Richard Cordray. The CFPB report found that while consumers are largely aware of reverse mortgages, few completely understand them. “Many consumers struggle to understand how their loan balance will rise and their home equity will fall over time with a reverse mortgage,” the reported stated. “Some borrowers do not understand that they need to continue to pay taxes and insurance with a reverse mortgage.” Norman concedes that some of the bureau’s conclusions were “relatively accurate” and applauds the bureau for embarking on such a study. However, he scolds it for not consulting consumers while conducting the study and forming conclusions. The CFPB has yet to respond to inquiries about Norman's claim. According to the CFPB study, 70% of borrowers are taking out the full amount of proceeds as a lump sum rather than as an income stream or line of credit. “This raises concerns that consumers who take out all of their accessible home equity upfront will have fewer resources available later in life. They may not have the money to continue to pay taxes and insurance on their homes, which can put them at risk of losing their home,” the report stated. As part of a public education campaign, the National Reverse Mortgage Lenders Association developed a newly redesign consumer website in June that provides comprehensive help and information on the entire process of obtaining a reverse mortgage. NRMLA is partnering with the federal government as part of the campaign. Norman, meanwhile, doesn’t think the CFPB’s findings are wrong. He just doesn’t think they went far enough. “Most of the seniors we deal with are smarter and wiser than we’ll be in the next 20 years,” Norman says. “These are smart people. They lived through World War II. We haven’t.”
URL to original article: http://www.housingwire.com/news/reverse-mortgages-will-be-prevalent-iras-10-years-sente-mortgage
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Justin T. Hilley
Reverse mortgages will be as ubiquitous as individual retirement accounts in 10 years because many folks will have more money in the former than in the latter, says Scott Norman, vice president of Austin, Texas-based Sente Mortgage's reverse mortgage division. Norman says the forces of supply & demand and education will serve as the engine for his prediction's materialization that every extended family will have a member with a reverse mortgage. “There’s still a great deal of education — for financial planners, certified public accountants, home health care professionals, real estate attorneys — that needs to be done,” Norman says. “We haven’t even scratched the surface yet.” Reverse mortgages let borrowers convert a portion of their home equity into cash. However, unlike a traditional home equity loan or second mortgage, borrowers can hold off on repayment until they no longer live in the home, fail to meet the obligations of the mortgage or pass away. The demographics point to a robust consumer base for the reverse mortgage industry. The population of individuals 65 and up increased 15% to 40 million in 2010 from 35 million in 2000, according to the Department of Health and Human Services. It projects a 36% increase to 55 million in 2020. And by 2030, about 72.1 million older Americans, over twice their number in 2000, will exist — about 19% of the U.S. population. Norman says Sente Mortgage views reverse mortgages as a product with unlimited upside, a natural financial planning option for aging Americans within the housing economy. He favors the Home Equity Conversion Mortgage Saver, a type of reverse mortgage offered by the Federal Housing Administration that requires drastically lower upfront fees — just .01% of the home value — than the HECM Standard, but reduces the amount of money available to the borrower. “As the baby boomers continue to age and home values stabilize, the question is ‘How are they going to retire?’’ Norman says. “Pull up average 401(K), average savings amount, average debt. These seniors aren’t going to be able to retire at a fraction of what they’re living today. I don’t think I’m exaggerating." “I’m not saying a reverse mortgage is for everybody, but it is certainly an option that may be the most realistic for a majority of the seniors in the next five to ten years,” Norman says. “It’s safe, it’s cost efficient. The biggest complaint you have regarding reverse mortgages is not the product, but that it's expensive to grow old in America.” They're also confusing, according to the Consumer Financial Protection Bureau, which released a report highlighting the risks for American consumers as they struggle to understand reverse mortgages. “Reverse mortgages are complex and have the potential to become a much more pervasive product in the coming years as the baby boomer generation enters retirement,” said CFPB Director Richard Cordray. The CFPB report found that while consumers are largely aware of reverse mortgages, few completely understand them. “Many consumers struggle to understand how their loan balance will rise and their home equity will fall over time with a reverse mortgage,” the reported stated. “Some borrowers do not understand that they need to continue to pay taxes and insurance with a reverse mortgage.” Norman concedes that some of the bureau’s conclusions were “relatively accurate” and applauds the bureau for embarking on such a study. However, he scolds it for not consulting consumers while conducting the study and forming conclusions. The CFPB has yet to respond to inquiries about Norman's claim. According to the CFPB study, 70% of borrowers are taking out the full amount of proceeds as a lump sum rather than as an income stream or line of credit. “This raises concerns that consumers who take out all of their accessible home equity upfront will have fewer resources available later in life. They may not have the money to continue to pay taxes and insurance on their homes, which can put them at risk of losing their home,” the report stated. As part of a public education campaign, the National Reverse Mortgage Lenders Association developed a newly redesign consumer website in June that provides comprehensive help and information on the entire process of obtaining a reverse mortgage. NRMLA is partnering with the federal government as part of the campaign. Norman, meanwhile, doesn’t think the CFPB’s findings are wrong. He just doesn’t think they went far enough. “Most of the seniors we deal with are smarter and wiser than we’ll be in the next 20 years,” Norman says. “These are smart people. They lived through World War II. We haven’t.”
URL to original article: http://www.housingwire.com/news/reverse-mortgages-will-be-prevalent-iras-10-years-sente-mortgage
For further information on Fresno Real Estate check: http://www.londonproperties.com
Monday, July 23, 2012
Three Calif. loan mod scammers sentenced
Source: Housingwire
A California woman will spend the next year under house arrest for defrauding borrowers who lost their homes to foreclosure. Sara Beth Bushore Rosengrant and her accomplices Ziad Nabil Mohammed al Saffar were sentenced last week for operating a loan modification scam in San Diego. Not being a U.S. citizen, al Saffar will be deported after serving 21 months in federal prison. Both pleaded guilty to the scam. Daniel al Saffar also admitted working as a sales representative connected to the operation and will serve six months under house arrest. Each defendant paid $30,000 in restitution to the victims before being sentenced. According to court documents, the three operated under a business name Compliance Audit Solutions or CAS Group. They offered false audits of mortgages for borrowers who could no longer afford monthly payments, and claimed to find "violations" in the documents to force the banks into negotiations. They built websites named after the Home Affordable Modification Program, claimed to be affiliated with the Department of Housing and Urban Development, and charged fees ranging from $995 to $3,500. Special Inspector General of the Troubled Asset Relief Program long warned borrowers to not pay third-party companies up front for a modification. "These sentencings are the result of a fraud scheme that specifically targeted the most vulnerable homeowners struggling to cope with the collapse in the housing market," said Christy Romero, special inspector general at SIGTARP.
URL to original article: http://www.housingwire.com/content/three-calif-loan-mod-scammers-sentenced
For further information on Fresno Real Estate check: http://www.londonproperties.com
A California woman will spend the next year under house arrest for defrauding borrowers who lost their homes to foreclosure. Sara Beth Bushore Rosengrant and her accomplices Ziad Nabil Mohammed al Saffar were sentenced last week for operating a loan modification scam in San Diego. Not being a U.S. citizen, al Saffar will be deported after serving 21 months in federal prison. Both pleaded guilty to the scam. Daniel al Saffar also admitted working as a sales representative connected to the operation and will serve six months under house arrest. Each defendant paid $30,000 in restitution to the victims before being sentenced. According to court documents, the three operated under a business name Compliance Audit Solutions or CAS Group. They offered false audits of mortgages for borrowers who could no longer afford monthly payments, and claimed to find "violations" in the documents to force the banks into negotiations. They built websites named after the Home Affordable Modification Program, claimed to be affiliated with the Department of Housing and Urban Development, and charged fees ranging from $995 to $3,500. Special Inspector General of the Troubled Asset Relief Program long warned borrowers to not pay third-party companies up front for a modification. "These sentencings are the result of a fraud scheme that specifically targeted the most vulnerable homeowners struggling to cope with the collapse in the housing market," said Christy Romero, special inspector general at SIGTARP.
URL to original article: http://www.housingwire.com/content/three-calif-loan-mod-scammers-sentenced
For further information on Fresno Real Estate check: http://www.londonproperties.com
Economic activity increases in June: Chicago Fed
Source: Housingwire
Growing activity levels in production-related indicators and an improved housing outlook helped buoy economic activity during the month of June, according to the Chicago Federal Reserve Bank's latest National Activity Index. The CFNAI index increased to a score of negative 0.15 in June, which is improved from negative 0.48 in May. A score of zero or above shows the economy is expanding at its historical rate of growth, while negative values show below average growth in the national economy. Of the 85 economic indicators studied, 40 made positive contributions to the June CFNAI report while 45 had a negative impact. Forty-two economic indicators improved from May to June while 43 indicators deteriorated. The consumption and housing part of the study contributed to overall economic growth with that index edging up from negative 26 in May to negative 23 in June. The Chicago Fed noted that housing starts rose to 760,000 annualized units in June, up from 711,000 in May. Meanwhile, housing permits fell from 784,000 to 755,000 annualized units. Employment numbers did little to impact the national economic survey. Total employment grew by 80,000 jobs in June after a gain of 77,000 jobs in May. The index's three-month moving average also grew from negative 38 in May to negative 20 in June. While that's improved, its still the fourth consecutive reading below zero. "June’s CFNAI-MA3 suggests that growth in national economic activity was below its historical trend," the Chicago Fed said. "The economic growth reflected in this level of the CFNAI-MA3 suggests subdued inflationary pressure from economic activity over the coming year."
URL to original article: http://www.housingwire.com/content/economic-activity-increases-june-chicago-fed
For further information on Fresno Real Estate check: http://www.londonproperties.com
Growing activity levels in production-related indicators and an improved housing outlook helped buoy economic activity during the month of June, according to the Chicago Federal Reserve Bank's latest National Activity Index. The CFNAI index increased to a score of negative 0.15 in June, which is improved from negative 0.48 in May. A score of zero or above shows the economy is expanding at its historical rate of growth, while negative values show below average growth in the national economy. Of the 85 economic indicators studied, 40 made positive contributions to the June CFNAI report while 45 had a negative impact. Forty-two economic indicators improved from May to June while 43 indicators deteriorated. The consumption and housing part of the study contributed to overall economic growth with that index edging up from negative 26 in May to negative 23 in June. The Chicago Fed noted that housing starts rose to 760,000 annualized units in June, up from 711,000 in May. Meanwhile, housing permits fell from 784,000 to 755,000 annualized units. Employment numbers did little to impact the national economic survey. Total employment grew by 80,000 jobs in June after a gain of 77,000 jobs in May. The index's three-month moving average also grew from negative 38 in May to negative 20 in June. While that's improved, its still the fourth consecutive reading below zero. "June’s CFNAI-MA3 suggests that growth in national economic activity was below its historical trend," the Chicago Fed said. "The economic growth reflected in this level of the CFNAI-MA3 suggests subdued inflationary pressure from economic activity over the coming year."
URL to original article: http://www.housingwire.com/content/economic-activity-increases-june-chicago-fed
For further information on Fresno Real Estate check: http://www.londonproperties.com
Friday, July 20, 2012
Short sales more rewarding than REO: RealtyTrac
Source: Housingwire
By Kerri Ann Panchuk
The market is trending toward short sales as lenders lean more heavily on disposition methods that aid distressed homeowners while making it easier for lenders to resell homes that have spent less time in a state of distress, RealtyTrac vice president Daren Blomquist told HousingWire Thursday. Blomquist suggested the financial incentive for lenders somewhat favors the short sale disposition model since the average short sale brings in about $175,000. That is much higher than the average REO resale, with average sales hovering in the $147,000 range. Blomquist noted that REOs tend to sit longer, cutting into their marketability and value. Whereas, short sales give the distressed borrower an easier way out, while ensuring a property doesn't sit in REO for months on end losing its potential resale value. Blomquist said the trend toward short sales may also be part of a strategy where banks "are taking the loss right away rather than using a delay and pray type of tactic." While Blomquist expects foreclosures and foreclosure starts to rise in the second half of 2012, he describes the foreclosure-release pattern as one that is very "cautious, with a managed flow," so he believes it's unlikely the market will find itself awash with an influx of foreclosure listings. Foreclosure starts that ticked up in the earlier part of the year could very well transition into more foreclosures while new starts pick up, Blomquist said. With borrowers underwater and keeping their homes off the market until they regain value or equity, some lenders may view this as a good time to roll out distressed properties since there is a shortage of desirable inventory in certain markets, Blomquist suggested.
URL to original article: http://www.housingwire.com/news/short-sales-are-demand-realtytrac
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Kerri Ann Panchuk
The market is trending toward short sales as lenders lean more heavily on disposition methods that aid distressed homeowners while making it easier for lenders to resell homes that have spent less time in a state of distress, RealtyTrac vice president Daren Blomquist told HousingWire Thursday. Blomquist suggested the financial incentive for lenders somewhat favors the short sale disposition model since the average short sale brings in about $175,000. That is much higher than the average REO resale, with average sales hovering in the $147,000 range. Blomquist noted that REOs tend to sit longer, cutting into their marketability and value. Whereas, short sales give the distressed borrower an easier way out, while ensuring a property doesn't sit in REO for months on end losing its potential resale value. Blomquist said the trend toward short sales may also be part of a strategy where banks "are taking the loss right away rather than using a delay and pray type of tactic." While Blomquist expects foreclosures and foreclosure starts to rise in the second half of 2012, he describes the foreclosure-release pattern as one that is very "cautious, with a managed flow," so he believes it's unlikely the market will find itself awash with an influx of foreclosure listings. Foreclosure starts that ticked up in the earlier part of the year could very well transition into more foreclosures while new starts pick up, Blomquist said. With borrowers underwater and keeping their homes off the market until they regain value or equity, some lenders may view this as a good time to roll out distressed properties since there is a shortage of desirable inventory in certain markets, Blomquist suggested.
URL to original article: http://www.housingwire.com/news/short-sales-are-demand-realtytrac
For further information on Fresno Real Estate check: http://www.londonproperties.com
LIRA: Remodeling Activity Poised for Strong Growth
Source: HARVARD JOINT CENTER FOR HOUSING STUDIES
CAMBRIDGE, MA –
With home sales picking up and contractors seeing more positive business conditions in the future, remodeling activity in the U.S. is in a position to see accelerated growth by the end of this year and into 2013, according to the Leading Indicator of Remodeling Activity (LIRA) released today by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University. The LIRA suggests that annual homeowner improvement spending may reach double-digit growth by the first quarter of 2013. “Warm weather in the first quarter temporarily bumped up remodeling activity in many areas,” says Eric S. Belsky, managing director of the Joint Center. “By the end of the year, however, positive market fundamentals are expected to kick in, moving the industry out of this ebb and flow period and into a new growth phase.” “Home improvement activity has been bouncing around the bottom of this cycle for almost three years now, waiting for the industry to get some traction,” says Kermit Baker, director of the Remodeling Futures Program at the Joint Center. “Now, the combination of low financing costs, stronger consumer confidence, improving home sales, and the perception that home prices have stabilized in most markets across the country are encouraging owners to start working on the list of home improvement projects they have been putting off. ” The Leading Indicator of Remodeling Activity (LIRA) is designed to estimate national homeowner spending on improvements for the current quarter and subsequent three quarters. The indicator, measured as an annual rate-of-change of its components, provides a short-term outlook of homeowner remodeling activity and is intended to help identify future turning points in the business cycle of the home improvement industry. The development of the LIRA is detailed in “Developing a Leading Indicator for the Remodeling Industry” (JCHS Research Note N07-1). In July 2008, the LIRA was re-benchmarked due to changes in the underlying reference series. These changes are explained in “Addendum to Research Note N07-1: Re-Benchmarking the Leading Indicator of Remodeling Activity” (JCHS Research Note N08-1). The LIRA is released by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University in the third week after each quarter’s closing. The next LIRA release date is October 18, 2012. The Remodeling Futures Program, initiated by the Joint Center for Housing Studies in 1995, is a comprehensive study of the factors influencing the growth and changing characteristics of housing renovation and repair activity in the United States. The Program seeks to produce a better understanding of the home improvement industry and its relationship to the broader residential construction industry.
URL to original article: http://www.builderonline.com/builder-pulse/remodeling-outlook-brightens.aspx?cid=BP:072012:JUMP
For further information on Fresno Real Estate check: http://www.londonproperties.com
With home sales picking up and contractors seeing more positive business conditions in the future, remodeling activity in the U.S. is in a position to see accelerated growth by the end of this year and into 2013, according to the Leading Indicator of Remodeling Activity (LIRA) released today by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University. The LIRA suggests that annual homeowner improvement spending may reach double-digit growth by the first quarter of 2013. “Warm weather in the first quarter temporarily bumped up remodeling activity in many areas,” says Eric S. Belsky, managing director of the Joint Center. “By the end of the year, however, positive market fundamentals are expected to kick in, moving the industry out of this ebb and flow period and into a new growth phase.” “Home improvement activity has been bouncing around the bottom of this cycle for almost three years now, waiting for the industry to get some traction,” says Kermit Baker, director of the Remodeling Futures Program at the Joint Center. “Now, the combination of low financing costs, stronger consumer confidence, improving home sales, and the perception that home prices have stabilized in most markets across the country are encouraging owners to start working on the list of home improvement projects they have been putting off. ” The Leading Indicator of Remodeling Activity (LIRA) is designed to estimate national homeowner spending on improvements for the current quarter and subsequent three quarters. The indicator, measured as an annual rate-of-change of its components, provides a short-term outlook of homeowner remodeling activity and is intended to help identify future turning points in the business cycle of the home improvement industry. The development of the LIRA is detailed in “Developing a Leading Indicator for the Remodeling Industry” (JCHS Research Note N07-1). In July 2008, the LIRA was re-benchmarked due to changes in the underlying reference series. These changes are explained in “Addendum to Research Note N07-1: Re-Benchmarking the Leading Indicator of Remodeling Activity” (JCHS Research Note N08-1). The LIRA is released by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University in the third week after each quarter’s closing. The next LIRA release date is October 18, 2012. The Remodeling Futures Program, initiated by the Joint Center for Housing Studies in 1995, is a comprehensive study of the factors influencing the growth and changing characteristics of housing renovation and repair activity in the United States. The Program seeks to produce a better understanding of the home improvement industry and its relationship to the broader residential construction industry.
URL to original article: http://www.builderonline.com/builder-pulse/remodeling-outlook-brightens.aspx?cid=BP:072012:JUMP
For further information on Fresno Real Estate check: http://www.londonproperties.com
Thursday, July 19, 2012
Home prices rise, sales fall on limited inventory
Source: Housingwire
By Kerri Ann Panchuk Total existing home sales declined 5.4% to a seasonally adjusted annual rate of 4.37 million in June from 4.62 million the month before. Existing sales in June were 4.5% higher than the 4.18 million units sold a year earlier. The month of June was somewhat of a challenge for first-time homebuyers looking to jump back into the market, pushing existing home prices higher. These same buyers created a strange dichotomy in the market, with many of them finding it difficult to locate affordable homes in the property inventory. This lack of viable options stymied overall home sales growth in June, the National Association of Realtors said Thursday. At the same time, pent-up demand and lower levels of inventory bouyed prices. "Despite the frictions related to obtaining mortgages, buyer interest remains solid," said Lawrence Yun, chief economist for NAR. "But inventory continues to shrink and that is limiting buying opportunities. This, in turn, is pushing up home prices in many markets. The price improvement also results from fewer distressed homes in the sales mix." Distressed homes accounted for 25% of all June sales, unchanged from May but 30% below June 2011 levels. The median existing single-family home price hit $190,000 in June, an increase of 8% from a year earlier. The median price on condos alone hit $182,200 in June, up 6.9% from June 2011.
URL to original article: http://www.housingwire.com/news/home-prices-rise-sales-fall-limited-inventory
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Kerri Ann Panchuk Total existing home sales declined 5.4% to a seasonally adjusted annual rate of 4.37 million in June from 4.62 million the month before. Existing sales in June were 4.5% higher than the 4.18 million units sold a year earlier. The month of June was somewhat of a challenge for first-time homebuyers looking to jump back into the market, pushing existing home prices higher. These same buyers created a strange dichotomy in the market, with many of them finding it difficult to locate affordable homes in the property inventory. This lack of viable options stymied overall home sales growth in June, the National Association of Realtors said Thursday. At the same time, pent-up demand and lower levels of inventory bouyed prices. "Despite the frictions related to obtaining mortgages, buyer interest remains solid," said Lawrence Yun, chief economist for NAR. "But inventory continues to shrink and that is limiting buying opportunities. This, in turn, is pushing up home prices in many markets. The price improvement also results from fewer distressed homes in the sales mix." Distressed homes accounted for 25% of all June sales, unchanged from May but 30% below June 2011 levels. The median existing single-family home price hit $190,000 in June, an increase of 8% from a year earlier. The median price on condos alone hit $182,200 in June, up 6.9% from June 2011.
URL to original article: http://www.housingwire.com/news/home-prices-rise-sales-fall-limited-inventory
For further information on Fresno Real Estate check: http://www.londonproperties.com
Jobless claims rise after a steep drop
Source: Housingwire
Jobless claims rose again after experiencing a steep decline last week, the Labor Department said Thursday. For the week ending July 14, 386,000 Americans filed claims for unemployment benefits, which is 34,000 claims higher than the previous week's revised figure of 352,000 filings. The latest report contrasts with the previous outlook, which showed jobless claims falling by 26,000 filings due to auto factories staying open, rather than shutting their doors for summer. Volatility in the auto sector is still impacting the jobs report this week, Econoday analysts suggested. The research firm wrote, "Indicators that are weekly are often subject to high volatility and the most prominent weekly indicator on the calendar -- jobless claims -- is on a roller coaster right now due to the timing and related seasonal adjustments for summer retoolings and shutdowns centered in the auto sector." Unemployment trends generally indicate whether the economy is rebounding enough to give Americans the confidence to buy homes and consumer products. Real estate economists study jobless trends to determine how well consumers are faring and to gauge whether enough jobs are coming back to support a broader housing recovery.
URL to original article: http://www.housingwire.com/content/jobless-claims-rise-after-steep-drop
For further information on Fresno Real Estate check: http://www.londonproperties.com
Jobless claims rose again after experiencing a steep decline last week, the Labor Department said Thursday. For the week ending July 14, 386,000 Americans filed claims for unemployment benefits, which is 34,000 claims higher than the previous week's revised figure of 352,000 filings. The latest report contrasts with the previous outlook, which showed jobless claims falling by 26,000 filings due to auto factories staying open, rather than shutting their doors for summer. Volatility in the auto sector is still impacting the jobs report this week, Econoday analysts suggested. The research firm wrote, "Indicators that are weekly are often subject to high volatility and the most prominent weekly indicator on the calendar -- jobless claims -- is on a roller coaster right now due to the timing and related seasonal adjustments for summer retoolings and shutdowns centered in the auto sector." Unemployment trends generally indicate whether the economy is rebounding enough to give Americans the confidence to buy homes and consumer products. Real estate economists study jobless trends to determine how well consumers are faring and to gauge whether enough jobs are coming back to support a broader housing recovery.
URL to original article: http://www.housingwire.com/content/jobless-claims-rise-after-steep-drop
For further information on Fresno Real Estate check: http://www.londonproperties.com
Wednesday, July 18, 2012
How low can the American homeownership rate go?
Source: Housingwire
The American homeownership rate fell from 69.2% in 2004 to a low of 65.4% in the first quarter of the year, but how much further does that rate have to fall? Paul Diggle, a property economist with Capital Economics, asked that question in a new research report released this morning. The future of homeownership depends a great deal on how young buyers will view homeownership in the future. Will tight credit keep young households out of the market for a longer period of time? And even if they can get back into the market, will student loan debt and fears of making a bad investment turn younger Americans away from the home buying option? "Over a longer horizon, the case for further falls in the homeownership rate hinges on whether there has been a permanent shift in the tastes and preferences of American households away from owner-occupation," Diggle said Tuesday. "Hard evidence is thin on the ground, but that doesn’t appear to have happened." But even with prices falling and the assumption that some pent-up demand could return to the market, Diggle worries that 1.7 million additional homes will fall into foreclosure over the next five years. With all of these factors taken into consideration, Diggle believes it's reasonable to estimate that the homeownership rate will decline to about 64% by 2015. "This would take the rate back to 1995 levels," he said. "The flipside of a falling homeownership rate is a rising rental rate. Compared to 2004, an additional 6.6 million households are renting, more than 90% of the increase in total household numbers over that period. Were the homeownership rate to continue falling in line with our expectations, the rental sector could expand by up to one million households per annum over the next few years. That is going to create opportunities for investors, who will own an increasing proportion of the housing stock."
URL to original article: http://www.housingwire.com/content/how-low-can-american-homeownership-rate-go
For further information on Fresno Real Estate check: http://www.londonproperties.com
The American homeownership rate fell from 69.2% in 2004 to a low of 65.4% in the first quarter of the year, but how much further does that rate have to fall? Paul Diggle, a property economist with Capital Economics, asked that question in a new research report released this morning. The future of homeownership depends a great deal on how young buyers will view homeownership in the future. Will tight credit keep young households out of the market for a longer period of time? And even if they can get back into the market, will student loan debt and fears of making a bad investment turn younger Americans away from the home buying option? "Over a longer horizon, the case for further falls in the homeownership rate hinges on whether there has been a permanent shift in the tastes and preferences of American households away from owner-occupation," Diggle said Tuesday. "Hard evidence is thin on the ground, but that doesn’t appear to have happened." But even with prices falling and the assumption that some pent-up demand could return to the market, Diggle worries that 1.7 million additional homes will fall into foreclosure over the next five years. With all of these factors taken into consideration, Diggle believes it's reasonable to estimate that the homeownership rate will decline to about 64% by 2015. "This would take the rate back to 1995 levels," he said. "The flipside of a falling homeownership rate is a rising rental rate. Compared to 2004, an additional 6.6 million households are renting, more than 90% of the increase in total household numbers over that period. Were the homeownership rate to continue falling in line with our expectations, the rental sector could expand by up to one million households per annum over the next few years. That is going to create opportunities for investors, who will own an increasing proportion of the housing stock."
URL to original article: http://www.housingwire.com/content/how-low-can-american-homeownership-rate-go
For further information on Fresno Real Estate check: http://www.londonproperties.com
Housing starts rose 6.9% in June
Source: Housingwire
Housing starts in June rose 6.9% from May, reaching a seasonally adjusted annual rate of 760,000 units last month, the U.S. government said Wednesday. Bloomberg news is calling it the largest uptick in starts in three years. That is well above the revised May estimate of 711,000 starts and 23.6% above the 615,000 starts recorded in June of 2011, according to the U.S. Census Bureau and the Department of Housing and Urban Development. Single-family housing starts alone rose 4.7% to 539,000 in June from 515,000 in May. Building permits, on the other hand, fell 3.7% to 755,000 applications. Still, June permit activity remains 19.3% above June 2011 levels. Housing completions in June hit a seasonally adjusted rate of 622,000, which is 2.6% above the May estimate of 606,000 and 7.2% above the June 2011 rate of 580,000 home completions. The completion rate for single-family homes rose 1.3% from May to June, hitting 470,000 completions last month. The June completion rate for buildings with five or more units hit 134,000 total completions.
URL to original article: http://www.housingwire.com/content/housing-starts-rise-69-june
For further information on Fresno Real Estate check: http://www.londonproperties.com
Housing starts in June rose 6.9% from May, reaching a seasonally adjusted annual rate of 760,000 units last month, the U.S. government said Wednesday. Bloomberg news is calling it the largest uptick in starts in three years. That is well above the revised May estimate of 711,000 starts and 23.6% above the 615,000 starts recorded in June of 2011, according to the U.S. Census Bureau and the Department of Housing and Urban Development. Single-family housing starts alone rose 4.7% to 539,000 in June from 515,000 in May. Building permits, on the other hand, fell 3.7% to 755,000 applications. Still, June permit activity remains 19.3% above June 2011 levels. Housing completions in June hit a seasonally adjusted rate of 622,000, which is 2.6% above the May estimate of 606,000 and 7.2% above the June 2011 rate of 580,000 home completions. The completion rate for single-family homes rose 1.3% from May to June, hitting 470,000 completions last month. The June completion rate for buildings with five or more units hit 134,000 total completions.
URL to original article: http://www.housingwire.com/content/housing-starts-rise-69-june
For further information on Fresno Real Estate check: http://www.londonproperties.com
Tuesday, July 17, 2012
Housing's moment: safe to go?
Source: Fortune
Buying into a housing comeback
By Scott Cendrowski, writer-reporterJuly 16, 2012: 5:00 AM ET
Stocks of homebuilding companies have taken off - but they still have room to run. FORTUNE --
It has happened repeatedly: The housing market shows hints of revving up only to sputter and stall. In fact, by Deutsche Bank's count, there have been seven false recoveries during the six-year national housing downturn. Now there are signs that a true residential property recovery is under way. Exhibit A: Stocks of homebuilding companies have soared, with many doubling over the past nine months. The good news for investors, according to analysts who track fundamental data, is that even after their gains, these stocks offer rich potential. The reason is straightforward. There's a looming shortage of new homes in the U.S., and construction will have to ramp up. Homebuilders slashed production in recent years as demand withered. Now, says Ivy Zelman, CEO of Zelman & Associates, "new-home inventory is at record lows any way you look at it." Over the years, new properties have represented 0.3% of total U.S. households, she says; today that figure is 0.1%. Census figures show that just 475,000 new homes were completed annually over the past three years, down from a long-term yearly average of 1.1 million. Zelman was one of the only Wall Street analysts to predict a housing downturn in 2006, and she remained mostly bearish until early this year. Several factors have changed her mind: the paltry inventory of new properties; a national bottoming of prices, which nudges indecisive potential buyers to pull the trigger; and the increased cost of renting in cities across the country. Consider a new housing community in Delray Beach, Fla., described by Zelman: Potential buyers started lining up at 6 a.m. and snapped up 44 homes over the weekend. Such scenes, though almost disturbingly reminiscent of the late bubble, have given Zelman hope. She recommends shares of Pulte (PHM). Investors fear that Pulte's mortgage unit may face further losses. But Zelman disagrees with the gloomy outlook and thinks improving profit margins will lift the share price 78% over the next two to three years. More: Where home prices are rising for the wrong reasons Places like Houston, Dallas, and Indianapolis, and even central Florida, have new-home supplies of less than three months, says Mike Castleman, CEO of research firm Metrostudy, which sends field researchers to new-home sites across some two-thirds of the country every three months. Annual housing starts in Metrostudy's markets are just 20% of their peak in 2006. When demand picks up from those depths, Castleman says, "builders will be starting more homes, pouring more slabs, and buying more lots." That's the case for optimism. But given the gains in homebuilder stocks, have they become overpriced? No, argues Nishu Sood, an analyst at Deutsche Bank. Sood calculates the so-called normalized earnings of homebuilders -- what the companies can earn once demand returns to its long-term average. He ignores short-term earnings fluctuations, as they have little bearing on the homebuilders' future prospects. According to Sood, residential-construction stocks trade for a normalized price/earnings ratio of 5. He recommends companies -- such as D.R. Horton (DHI), M.D.C. Holdings (MDC), Meritage (MTH), Ryland (RYL), and Toll Brothers (TOL) -- with lower debt levels, which means they can borrow when they need to. They "can stretch their balance sheets and ultimately earn more in a recovery," Sood wrote in a recent report. The second concern is foreclosures. Skeptics warn that a wave of foreclosures will flood the market and pummel prices again. Some 3 million to 5 million houses either are burdened by a delinquent mortgage or are foreclosed properties that haven't yet reentered the sales market, according to economist A. Gary Shilling, who runs a firm of the same name. Once those houses go back on the block, he says, they're typically sold for 19% less than a comparable non-foreclosed residence. The wide availability of discount properties, Shilling argues, will depress prices and cripple the fragile housing recovery. "If you get a number of [foreclosed] houses being sold, then that really becomes the market," he says. "At that point I don't think homebuilders can compete." More: McMansions for half off! However, Zelman and others counter that it takes a long time for repossessed properties to creep back onto the market. Foreclosure cases are often mired in court for years, and more than 65% of ongoing U.S. foreclosures are in states where a judge needs to approve the process. Repossessed houses will reenter the market for years to come, the housing bulls argue, but it will be a steady trickle rather than a flood. Take Orange County, Calif. Prices skyrocketed during the boom, only to collapse 36% from 2006 through today. But foreclosed properties, once the hottest thing since cathedral ceilings, are now in short supply. Repossessed homes remain on the market just 20 days on average before being scooped up by buyers (which increasingly include institutional investors). Today homebuilders are pulling out their hammers and their nail guns again and preparing to meet demand. It marks the beginning of a new upward cycle -- and one that should soon be repeated across the rest of the country. This story is from the July 23, 2012 issue of Fortune.
URL to original article: http://www.builderonline.com/builder-pulse/housing-s-moment--safe-to-go-.aspx?cid=BP:071612:JUMP
For further information on Fresno Real Estate check: http://www.londonproperties.com
Buying into a housing comeback
By Scott Cendrowski, writer-reporterJuly 16, 2012: 5:00 AM ET
Stocks of homebuilding companies have taken off - but they still have room to run. FORTUNE --
It has happened repeatedly: The housing market shows hints of revving up only to sputter and stall. In fact, by Deutsche Bank's count, there have been seven false recoveries during the six-year national housing downturn. Now there are signs that a true residential property recovery is under way. Exhibit A: Stocks of homebuilding companies have soared, with many doubling over the past nine months. The good news for investors, according to analysts who track fundamental data, is that even after their gains, these stocks offer rich potential. The reason is straightforward. There's a looming shortage of new homes in the U.S., and construction will have to ramp up. Homebuilders slashed production in recent years as demand withered. Now, says Ivy Zelman, CEO of Zelman & Associates, "new-home inventory is at record lows any way you look at it." Over the years, new properties have represented 0.3% of total U.S. households, she says; today that figure is 0.1%. Census figures show that just 475,000 new homes were completed annually over the past three years, down from a long-term yearly average of 1.1 million. Zelman was one of the only Wall Street analysts to predict a housing downturn in 2006, and she remained mostly bearish until early this year. Several factors have changed her mind: the paltry inventory of new properties; a national bottoming of prices, which nudges indecisive potential buyers to pull the trigger; and the increased cost of renting in cities across the country. Consider a new housing community in Delray Beach, Fla., described by Zelman: Potential buyers started lining up at 6 a.m. and snapped up 44 homes over the weekend. Such scenes, though almost disturbingly reminiscent of the late bubble, have given Zelman hope. She recommends shares of Pulte (PHM). Investors fear that Pulte's mortgage unit may face further losses. But Zelman disagrees with the gloomy outlook and thinks improving profit margins will lift the share price 78% over the next two to three years. More: Where home prices are rising for the wrong reasons Places like Houston, Dallas, and Indianapolis, and even central Florida, have new-home supplies of less than three months, says Mike Castleman, CEO of research firm Metrostudy, which sends field researchers to new-home sites across some two-thirds of the country every three months. Annual housing starts in Metrostudy's markets are just 20% of their peak in 2006. When demand picks up from those depths, Castleman says, "builders will be starting more homes, pouring more slabs, and buying more lots." That's the case for optimism. But given the gains in homebuilder stocks, have they become overpriced? No, argues Nishu Sood, an analyst at Deutsche Bank. Sood calculates the so-called normalized earnings of homebuilders -- what the companies can earn once demand returns to its long-term average. He ignores short-term earnings fluctuations, as they have little bearing on the homebuilders' future prospects. According to Sood, residential-construction stocks trade for a normalized price/earnings ratio of 5. He recommends companies -- such as D.R. Horton (DHI), M.D.C. Holdings (MDC), Meritage (MTH), Ryland (RYL), and Toll Brothers (TOL) -- with lower debt levels, which means they can borrow when they need to. They "can stretch their balance sheets and ultimately earn more in a recovery," Sood wrote in a recent report. The second concern is foreclosures. Skeptics warn that a wave of foreclosures will flood the market and pummel prices again. Some 3 million to 5 million houses either are burdened by a delinquent mortgage or are foreclosed properties that haven't yet reentered the sales market, according to economist A. Gary Shilling, who runs a firm of the same name. Once those houses go back on the block, he says, they're typically sold for 19% less than a comparable non-foreclosed residence. The wide availability of discount properties, Shilling argues, will depress prices and cripple the fragile housing recovery. "If you get a number of [foreclosed] houses being sold, then that really becomes the market," he says. "At that point I don't think homebuilders can compete." More: McMansions for half off! However, Zelman and others counter that it takes a long time for repossessed properties to creep back onto the market. Foreclosure cases are often mired in court for years, and more than 65% of ongoing U.S. foreclosures are in states where a judge needs to approve the process. Repossessed houses will reenter the market for years to come, the housing bulls argue, but it will be a steady trickle rather than a flood. Take Orange County, Calif. Prices skyrocketed during the boom, only to collapse 36% from 2006 through today. But foreclosed properties, once the hottest thing since cathedral ceilings, are now in short supply. Repossessed homes remain on the market just 20 days on average before being scooped up by buyers (which increasingly include institutional investors). Today homebuilders are pulling out their hammers and their nail guns again and preparing to meet demand. It marks the beginning of a new upward cycle -- and one that should soon be repeated across the rest of the country. This story is from the July 23, 2012 issue of Fortune.
URL to original article: http://www.builderonline.com/builder-pulse/housing-s-moment--safe-to-go-.aspx?cid=BP:071612:JUMP
For further information on Fresno Real Estate check: http://www.londonproperties.com
Good news for contractors: Remodeling activity up in 2012
Source: Housingwire
Building permits authorizing home remodeling activity picked up in May, reaching a seasonally-adjusted rate of 2.6 million filed projects, 3% above April levels and up 6% from 2.5 million permits a year earlier. BuildFax, a national database of building permit data, released the remodeling data Tuesday. An uptick in remodeling activity is considered a possible boon for the construction industry since new activity has the potential put builders and contractors back to work. "Remodeling growth appears to be flattening out, although 2012 looks like it will still be significantly better than 2011," said Joe Emison, vice president of research and development at BuildFax. Remodeling permits picked up the most in the Northeast during the month of May with 529,788 permits filed, up 3% from April and 14% from last year. In the South, permits hit one million, down 4% from April, but up 2% from last year. Furthermore, in the Midwest, 510,000 permits were filed, which is unchanged from April, but down 1% from last year. And in the West, permits hit 736,000, up 7% from April and a 9% increase from a year earlier.
URL to original article: http://www.housingwire.com/content/good-news-contractors-remodeling-activity-2012
For further information on Fresno Real Estate check: http://www.londonproperties.com
Building permits authorizing home remodeling activity picked up in May, reaching a seasonally-adjusted rate of 2.6 million filed projects, 3% above April levels and up 6% from 2.5 million permits a year earlier. BuildFax, a national database of building permit data, released the remodeling data Tuesday. An uptick in remodeling activity is considered a possible boon for the construction industry since new activity has the potential put builders and contractors back to work. "Remodeling growth appears to be flattening out, although 2012 looks like it will still be significantly better than 2011," said Joe Emison, vice president of research and development at BuildFax. Remodeling permits picked up the most in the Northeast during the month of May with 529,788 permits filed, up 3% from April and 14% from last year. In the South, permits hit one million, down 4% from April, but up 2% from last year. Furthermore, in the Midwest, 510,000 permits were filed, which is unchanged from April, but down 1% from last year. And in the West, permits hit 736,000, up 7% from April and a 9% increase from a year earlier.
URL to original article: http://www.housingwire.com/content/good-news-contractors-remodeling-activity-2012
For further information on Fresno Real Estate check: http://www.londonproperties.com
Friday, July 13, 2012
Americans fear gloom and doom economy: Pew
Source: Housingwire
A majority of Americans and citizens living in established economies see gloom and doom when asked to assess the financial conditions of their national economies, the Pew Research Center said. At the same time, citizens in the emerging markets of China, Germany, Brazil and Turkey are generally optimistic. The research group surveyed the attitudes of citizens in 21 countries. In America, 31% of those surveyed believe the U.S. economy is doing well, leaving an overwhelming percent in the negative camp. While that figure is up 13 percentage points from 2011, it is still well under the optimism levels reported in China, where 83% of the surveyed citizens are positive on their national economy. Germans rank second with 73% in the optimistic camp, followed by Brazil (65%) and Turkey (57%). The viewpoints of Americans are somewhat contradictory. Most have a negative view of the economy as a whole, while 60% say they have a better standard of living than their parents at the same age. Sixty-eight percent classify their personal economic situations as good, while only 14% believe it's easy for a young person to get a better job or become wealthier than their parents. In Europe, where countries are dealing with dire financial issues, only 16% of respondents believe their economies are performing up to par, Pew said. Of that group, only 2% of Greeks are optimistic. And only 6% of the citizens in Italy and Spain are confident in their local economies.
URL to original article: http://www.housingwire.com/content/majority-americans-report-gloom-and-doom-economy-pew
For further information on Fresno Real Estate check: http://www.londonproperties.com
A majority of Americans and citizens living in established economies see gloom and doom when asked to assess the financial conditions of their national economies, the Pew Research Center said. At the same time, citizens in the emerging markets of China, Germany, Brazil and Turkey are generally optimistic. The research group surveyed the attitudes of citizens in 21 countries. In America, 31% of those surveyed believe the U.S. economy is doing well, leaving an overwhelming percent in the negative camp. While that figure is up 13 percentage points from 2011, it is still well under the optimism levels reported in China, where 83% of the surveyed citizens are positive on their national economy. Germans rank second with 73% in the optimistic camp, followed by Brazil (65%) and Turkey (57%). The viewpoints of Americans are somewhat contradictory. Most have a negative view of the economy as a whole, while 60% say they have a better standard of living than their parents at the same age. Sixty-eight percent classify their personal economic situations as good, while only 14% believe it's easy for a young person to get a better job or become wealthier than their parents. In Europe, where countries are dealing with dire financial issues, only 16% of respondents believe their economies are performing up to par, Pew said. Of that group, only 2% of Greeks are optimistic. And only 6% of the citizens in Italy and Spain are confident in their local economies.
URL to original article: http://www.housingwire.com/content/majority-americans-report-gloom-and-doom-economy-pew
For further information on Fresno Real Estate check: http://www.londonproperties.com
Livability: where will people move in the next 20 years
Source: Gallup
If you want to find the U.S. states and regions with the brightest future, look west. Gallup analysis shows that the West North Central, Mountain, and Pacific regions are likely to be the best areas to live in 20 years, based on the strong economic, health, and community foundations they are building today. The combination -- or lack -- of strong economics, good health, and vibrant communities positions regions for the future. The best place to live in 2032 will have tackled unemployment, financial worry, healthcare costs, obesity, and education challenges. It will be a place where most residents are healthy, optimistic, employed in good jobs they love, and enthusiastic about their communities. But community and business leaders, take note: The future of your community, state, or region isn't sealed. You can adopt important concepts now that can influence your area's chances of being the best place to live in 20 years. Here are some specific suggestions for turning these ideas into action. The best -- and worst -- places to live in 2032 To see into the future, Gallup examined 13 forward-looking metrics encompassing economic, workplace, and community factors as well as personal choices that might predict future livability. (For details on these metrics, see the sidebar "How Gallup Computed the Rankings" at the end of this article.) The West North Central region, which includes Minnesota, Iowa, Missouri, North Dakota, South Dakota, Nebraska, and Kansas, is the region poised for the brightest future. Workers in this area are most likely to be employed full time for an employer in the type of good jobs associated with high GDP. Residents have the highest economic confidence in the nation, setting the region up for a strong economic future. They are also the most likely to report easy access to clean, safe water, meaning that this region is best positioned to address one of the critical resource challenges of the future. The Mountain region, which includes Montana, Arizona, Colorado, Idaho, Wyoming, Utah, Nevada, and New Mexico, comes in second, buoyed by the lowest obesity rate in the nation and the most widespread access to safe places to exercise. The Pacific region, comprised of California, Oregon, Washington, Hawaii, and Alaska, comes in a close third, with the lowest smoking rate in the nation, quality workplace relationships, and the highest percentage of residents who say they learn new and interesting things daily. The combination of strong economics, good health, and vibrant communities positions the West North Central, Mountain, and Pacific regions for a bright future. For other areas of the U.S., though, the future is not so bright. The East South Central region, which includes Kentucky, Tennessee, Alabama, and Mississippi, trails on several critical metrics and performed worst overall of the nine regions. People in this region are the least likely to be employed in good jobs or to learn new and interesting things daily, and they have the lowest economic confidence. They are also the most likely nationwide to be obese, to smoke, and to lack a safe place to exercise. That's a killer combination, and it won't help this area build the productive, healthy society of the future. Beyond the overall rankings, regions also show differences on key measures. The West South Central region, which comes in fourth overall, has the highest score in the nation on the Job Creation Index. Residents are also the most optimistic about their standard of living, with 54% saying that their standard of living is getting better, compared with 30% who said it is getting worse. This region also does best in future life evaluation and city optimism, which suggests that there is positive momentum for the future. But physical health is holding several regions back. In the West South Central region, obesity stands at a hefty 29%, second only to the 30% found in the East South Central region. Residents of the East South Central region are also the least likely to have visited the dentist, setting this region up for high healthcare costs in the future. Similarly, 23% of people in the East North Central region are smokers, compared with 16% in the Pacific region. This sets up the Pacific region for significantly fewer incidences of lung cancer, emphysema, and heart disease down the road. When it comes to water quality, 6% of residents of the West South Central region say they lack access to clean water. This is twice the 3% of residents of the West North Central region who say the same. That amounts to a difference of 1.1 million people who don't have access to clean water at a time when it is expected to become increasingly scarce worldwide. Workplaces are also a critical component of working Americans' everyday wellbeing, and they provide the economic energy of a community. The Pacific region leads in this category: 58% of workers characterize their relationship with their supervisor as a partnership that fosters productivity and an entrepreneurial spirit. The Middle Atlantic region scores the lowest on the Supervisor Relationship metric. It also has the lowest city optimism and Job Creation Index score of all nine regions. What leaders can do to make their communities more livable The future fate of these regions isn't sealed. Any community that can create good jobs and engaging workplaces while fostering better health habits and a sense of optimism about the future still has a chance to be the best place to live in 20 years. To this end, community and business leaders can implement proven initiatives that can make a significant difference in the future livability of any community. These actions could be directed by a mixture of private and public partnerships with a united sense of purpose and promise. The future livability of any community will be based on, among other things, its commitment to an entrepreneurial spirit, an informed and active citizenry, and a sense of shared commonwealth. The most critical element of any community's future livability might be a culture of successful entrepreneurship. Successful entrepreneurs consistently demonstrate a willingness to take risks, but they also have the resolve to start and manage a business. They exhibit a thirst for new ideas and innovation while demonstrating a willingness to act on their ideas and modify their business models over time. They demonstrate a competitive, energetic, and highly motivated business ethic, but they also must maintain a calming presence in times of crisis and uncertainty. Above all, entrepreneurs create jobs. Research has shown that communities with high wellbeing enjoy lower unemployment rates. People who are employed demonstrate healthier behaviors and better physical health than the unemployed, and workers who are engaged in their jobs are healthier, more productive, and exhibit higher overall wellbeing than those who are not. Indeed, the relationships among an entrepreneurial culture, job creation, and wellbeing have never been clearer. So what can leaders do to make their communities more livable? Many tangible, cost-effective, and proven forms of intervention can spark the entrepreneurial-based, wellbeing-driven cultures that can become the vanguards of future livability: • Schools and businesses can help reduce obesity and encourage healthy behaviors by eliminating sugary drinks and foods that are fried or high in high-fructose corn syrup, replacing them with healthier alternatives accompanied by nutritional information. • Businesses can give each employee an incentive to maintain a healthy body mass index by increasing contributions to medical spending accounts when the employee meets that goal. Businesses can create "bike to work" programs that offer workers incentives to bike rather than drive to work and can compete with one another in community bike-transit competitions. And companies can demonstrate a tangible, clear commitment to the wellbeing of their employees' families, not just the employees themselves. • Schools can initiate "walking school buses" to encourage kids and parents to walk to school safely in large groups. • Universities can commit more robustly to community outreach efforts that encourage all residents to learn and grow, not just students and faculty. Cities can also play a key role in encouraging and promoting their livability by: • certifying and promoting "community wellbeing" establishments, such as restaurants that offer smaller portions and a wide selection of heart-healthy fare or grocery stores that make it easy for shoppers to find healthy, low-fat foods and that provide free recipes for healthy home cooking • facilitating "business swaps," where small-business owners can eat at local certified restaurants or exercise at local fitness centers at discounted rates; these businesses, in turn, can provide discounted rates to the restaurant owners and fitness center members who shop at their businesses • investing in walking and biking paths and denoting bike lanes on city roads to encourage pedestrian and bicycle traffic to grocery stores, schools, and mass transit • levying taxes on foods that are high in sugar to reduce their purchase and consumption and investing in a security presence in at-risk neighborhoods to ensure that people feel safe when they shop at fresh-food stands or farmers markets • providing dentists who care for a minimum number of low-income patients free of charge with free advertising promoting them as community oral health champions Above all, communities can encourage healthcare, business, political, and education leaders to form a visible task force. Its purpose would be to share common goals; monitor and discuss measures of success; and provide a sustained, unified message of how the community will achieve its aspirations. Ultimately, the future livability of any community will come from its commitment to an entrepreneurial spirit; an informed and active citizenry; a sense of shared commonwealth; and a lasting promise to the long-term economic, physical, and social wellbeing of every resident.
URL to original article: http://www.builderonline.com/builder-pulse/livability--where-will-people-move-in-the-next-20-years.aspx?cid=BP:071212:JUMP
For further information on Fresno Real Estate check: http://www.londonproperties.com
If you want to find the U.S. states and regions with the brightest future, look west. Gallup analysis shows that the West North Central, Mountain, and Pacific regions are likely to be the best areas to live in 20 years, based on the strong economic, health, and community foundations they are building today. The combination -- or lack -- of strong economics, good health, and vibrant communities positions regions for the future. The best place to live in 2032 will have tackled unemployment, financial worry, healthcare costs, obesity, and education challenges. It will be a place where most residents are healthy, optimistic, employed in good jobs they love, and enthusiastic about their communities. But community and business leaders, take note: The future of your community, state, or region isn't sealed. You can adopt important concepts now that can influence your area's chances of being the best place to live in 20 years. Here are some specific suggestions for turning these ideas into action. The best -- and worst -- places to live in 2032 To see into the future, Gallup examined 13 forward-looking metrics encompassing economic, workplace, and community factors as well as personal choices that might predict future livability. (For details on these metrics, see the sidebar "How Gallup Computed the Rankings" at the end of this article.) The West North Central region, which includes Minnesota, Iowa, Missouri, North Dakota, South Dakota, Nebraska, and Kansas, is the region poised for the brightest future. Workers in this area are most likely to be employed full time for an employer in the type of good jobs associated with high GDP. Residents have the highest economic confidence in the nation, setting the region up for a strong economic future. They are also the most likely to report easy access to clean, safe water, meaning that this region is best positioned to address one of the critical resource challenges of the future. The Mountain region, which includes Montana, Arizona, Colorado, Idaho, Wyoming, Utah, Nevada, and New Mexico, comes in second, buoyed by the lowest obesity rate in the nation and the most widespread access to safe places to exercise. The Pacific region, comprised of California, Oregon, Washington, Hawaii, and Alaska, comes in a close third, with the lowest smoking rate in the nation, quality workplace relationships, and the highest percentage of residents who say they learn new and interesting things daily. The combination of strong economics, good health, and vibrant communities positions the West North Central, Mountain, and Pacific regions for a bright future. For other areas of the U.S., though, the future is not so bright. The East South Central region, which includes Kentucky, Tennessee, Alabama, and Mississippi, trails on several critical metrics and performed worst overall of the nine regions. People in this region are the least likely to be employed in good jobs or to learn new and interesting things daily, and they have the lowest economic confidence. They are also the most likely nationwide to be obese, to smoke, and to lack a safe place to exercise. That's a killer combination, and it won't help this area build the productive, healthy society of the future. Beyond the overall rankings, regions also show differences on key measures. The West South Central region, which comes in fourth overall, has the highest score in the nation on the Job Creation Index. Residents are also the most optimistic about their standard of living, with 54% saying that their standard of living is getting better, compared with 30% who said it is getting worse. This region also does best in future life evaluation and city optimism, which suggests that there is positive momentum for the future. But physical health is holding several regions back. In the West South Central region, obesity stands at a hefty 29%, second only to the 30% found in the East South Central region. Residents of the East South Central region are also the least likely to have visited the dentist, setting this region up for high healthcare costs in the future. Similarly, 23% of people in the East North Central region are smokers, compared with 16% in the Pacific region. This sets up the Pacific region for significantly fewer incidences of lung cancer, emphysema, and heart disease down the road. When it comes to water quality, 6% of residents of the West South Central region say they lack access to clean water. This is twice the 3% of residents of the West North Central region who say the same. That amounts to a difference of 1.1 million people who don't have access to clean water at a time when it is expected to become increasingly scarce worldwide. Workplaces are also a critical component of working Americans' everyday wellbeing, and they provide the economic energy of a community. The Pacific region leads in this category: 58% of workers characterize their relationship with their supervisor as a partnership that fosters productivity and an entrepreneurial spirit. The Middle Atlantic region scores the lowest on the Supervisor Relationship metric. It also has the lowest city optimism and Job Creation Index score of all nine regions. What leaders can do to make their communities more livable The future fate of these regions isn't sealed. Any community that can create good jobs and engaging workplaces while fostering better health habits and a sense of optimism about the future still has a chance to be the best place to live in 20 years. To this end, community and business leaders can implement proven initiatives that can make a significant difference in the future livability of any community. These actions could be directed by a mixture of private and public partnerships with a united sense of purpose and promise. The future livability of any community will be based on, among other things, its commitment to an entrepreneurial spirit, an informed and active citizenry, and a sense of shared commonwealth. The most critical element of any community's future livability might be a culture of successful entrepreneurship. Successful entrepreneurs consistently demonstrate a willingness to take risks, but they also have the resolve to start and manage a business. They exhibit a thirst for new ideas and innovation while demonstrating a willingness to act on their ideas and modify their business models over time. They demonstrate a competitive, energetic, and highly motivated business ethic, but they also must maintain a calming presence in times of crisis and uncertainty. Above all, entrepreneurs create jobs. Research has shown that communities with high wellbeing enjoy lower unemployment rates. People who are employed demonstrate healthier behaviors and better physical health than the unemployed, and workers who are engaged in their jobs are healthier, more productive, and exhibit higher overall wellbeing than those who are not. Indeed, the relationships among an entrepreneurial culture, job creation, and wellbeing have never been clearer. So what can leaders do to make their communities more livable? Many tangible, cost-effective, and proven forms of intervention can spark the entrepreneurial-based, wellbeing-driven cultures that can become the vanguards of future livability: • Schools and businesses can help reduce obesity and encourage healthy behaviors by eliminating sugary drinks and foods that are fried or high in high-fructose corn syrup, replacing them with healthier alternatives accompanied by nutritional information. • Businesses can give each employee an incentive to maintain a healthy body mass index by increasing contributions to medical spending accounts when the employee meets that goal. Businesses can create "bike to work" programs that offer workers incentives to bike rather than drive to work and can compete with one another in community bike-transit competitions. And companies can demonstrate a tangible, clear commitment to the wellbeing of their employees' families, not just the employees themselves. • Schools can initiate "walking school buses" to encourage kids and parents to walk to school safely in large groups. • Universities can commit more robustly to community outreach efforts that encourage all residents to learn and grow, not just students and faculty. Cities can also play a key role in encouraging and promoting their livability by: • certifying and promoting "community wellbeing" establishments, such as restaurants that offer smaller portions and a wide selection of heart-healthy fare or grocery stores that make it easy for shoppers to find healthy, low-fat foods and that provide free recipes for healthy home cooking • facilitating "business swaps," where small-business owners can eat at local certified restaurants or exercise at local fitness centers at discounted rates; these businesses, in turn, can provide discounted rates to the restaurant owners and fitness center members who shop at their businesses • investing in walking and biking paths and denoting bike lanes on city roads to encourage pedestrian and bicycle traffic to grocery stores, schools, and mass transit • levying taxes on foods that are high in sugar to reduce their purchase and consumption and investing in a security presence in at-risk neighborhoods to ensure that people feel safe when they shop at fresh-food stands or farmers markets • providing dentists who care for a minimum number of low-income patients free of charge with free advertising promoting them as community oral health champions Above all, communities can encourage healthcare, business, political, and education leaders to form a visible task force. Its purpose would be to share common goals; monitor and discuss measures of success; and provide a sustained, unified message of how the community will achieve its aspirations. Ultimately, the future livability of any community will come from its commitment to an entrepreneurial spirit; an informed and active citizenry; a sense of shared commonwealth; and a lasting promise to the long-term economic, physical, and social wellbeing of every resident.
URL to original article: http://www.builderonline.com/builder-pulse/livability--where-will-people-move-in-the-next-20-years.aspx?cid=BP:071212:JUMP
For further information on Fresno Real Estate check: http://www.londonproperties.com
Thursday, July 12, 2012
Amount of underwater borrowers declines in 1Q
Source: Housingwire
By Jon Prior
There are more underwater borrowers than CoreLogic ($20.08 -0.02%) previously reported after revising its valuation methods, but the number is on the decline. Roughly 11.4 million borrowers owe more on their mortgage than their home is worth as of March 31, or 23.7% of the entire market, according to the new report. This dropped 5.7% from the revised 12.1 million in negative equity at the end of last year, which was more than a quarter of all homeowners. CoreLogic previously reported 11.1 million underwater borrowers in the fourth quarter, based on the old model. The new methodology selects the most appropriate automated valuation model for a market and adjusts it to current sales activity. The analytics firm also limited the amount of properties to those valued between $30,000 and $30 million to reduce highly fluctuating estimates in the old model. Of those in negative equity during the first quarter, nearly 2 million are only 5% underwater, meaning if home prices continue increasing over the next year, they could rise into positive equity based just on a recovering market. But roughly 11% of the negative equity borrowers are severely underwater, meaning they owe more than 25% more on the mortgage than the home is worth. The Federal Housing Finance Agency continues to deliberate on whether to allow Fannie Mae and Freddie Mac to participate in a principal reduction program from the Treasury Department, but it would only cover roughly 700,000 underwater borrowers at the very most. More servicers are using principal reduction on modification in order to combat the negative equity problem that keeps many borrowers from selling their home and drives some to strategically default. As a percentage of the mortgage market, the 23.7% of borrowers who are underwater, is the lowest level since early 2009, according to CoreLogic revised data. Markets such as Nevada, where 61% of the borrowers are still underwater, are showing the fastest signs of recovery. "This is a meaningful improvement that is driven by quickly improving outlooks in some of the hardest hit markets," said CoreLogic Chief Economist Mark Fleming. "While the overall stagnating economic recovery will likely slow housing market recovery in the second half of this year, reducing the number of underwater households is an important step toward reducing future mortgage default risk."
URL to original article: http://www.housingwire.com/news/amount-underwater-borrowers-decline-1q
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Jon Prior
There are more underwater borrowers than CoreLogic ($20.08 -0.02%) previously reported after revising its valuation methods, but the number is on the decline. Roughly 11.4 million borrowers owe more on their mortgage than their home is worth as of March 31, or 23.7% of the entire market, according to the new report. This dropped 5.7% from the revised 12.1 million in negative equity at the end of last year, which was more than a quarter of all homeowners. CoreLogic previously reported 11.1 million underwater borrowers in the fourth quarter, based on the old model. The new methodology selects the most appropriate automated valuation model for a market and adjusts it to current sales activity. The analytics firm also limited the amount of properties to those valued between $30,000 and $30 million to reduce highly fluctuating estimates in the old model. Of those in negative equity during the first quarter, nearly 2 million are only 5% underwater, meaning if home prices continue increasing over the next year, they could rise into positive equity based just on a recovering market. But roughly 11% of the negative equity borrowers are severely underwater, meaning they owe more than 25% more on the mortgage than the home is worth. The Federal Housing Finance Agency continues to deliberate on whether to allow Fannie Mae and Freddie Mac to participate in a principal reduction program from the Treasury Department, but it would only cover roughly 700,000 underwater borrowers at the very most. More servicers are using principal reduction on modification in order to combat the negative equity problem that keeps many borrowers from selling their home and drives some to strategically default. As a percentage of the mortgage market, the 23.7% of borrowers who are underwater, is the lowest level since early 2009, according to CoreLogic revised data. Markets such as Nevada, where 61% of the borrowers are still underwater, are showing the fastest signs of recovery. "This is a meaningful improvement that is driven by quickly improving outlooks in some of the hardest hit markets," said CoreLogic Chief Economist Mark Fleming. "While the overall stagnating economic recovery will likely slow housing market recovery in the second half of this year, reducing the number of underwater households is an important step toward reducing future mortgage default risk."
URL to original article: http://www.housingwire.com/news/amount-underwater-borrowers-decline-1q
For further information on Fresno Real Estate check: http://www.londonproperties.com
Wednesday, July 11, 2012
Electric rates not falling along with fuel costs
Source: The Business Journal
(AP) —
A plunge in the price of natural gas has made it cheaper for utilities to produce electricity. But the savings aren't translating to lower rates for customers. Instead, U.S. electricity prices are going up. Electricity prices are forecast to rise slightly this summer. But any increase is noteworthy because natural gas, which is used to produce nearly a third of the country's power, is 43 percent cheaper than a year ago. A long-term downward trend in power prices could be starting to reverse, analysts say. "It's caused us to scratch our heads," says Tyler Hodge, an analyst at the Energy Department who studies electricity prices. The recent heat wave that gripped much of the country increased demand for power as families cranked up their air conditioners. And that may boost some June utility bills. But the nationwide rise in electricity prices is attributable to other factors, analysts say: — In many states, retail electricity rates are set by regulators every few years. As a result, lower power costs haven't yet made their way to customers. — Utilities often lock in their costs for natural gas and other fuels years in advance. That helps protect customers when fuel prices spike, but it prevents customers from reaping the benefits of a price drop. — The cost of actually delivering electricity, which accounts for 40 percent of a customer's bill on average, has been rising fast. That has eaten up any potential savings from the production of electricity. Utilities are building transmission lines, installing new equipment and fixing up power plants after what analysts say has been years of under-investment. This may reverse what has been a gradual decline in retail electricity prices. Adjusted for inflation, the average retail electricity price has been drifting mostly lower since 1984, when it was 16.7 cents per kilowatt-hour. "The ratepayer is going to have to foot the bill," says David Wright, vice chairman of the South Carolina Public Service Commission and president of the National Association of Regulatory Commissioners. The average U.S. residential electricity price is expected to be 12.4 cents per kilowatt hour for the June-to-August period, up 2.4 percent from the same time last year. For the full year, electricity prices are expected to rise 2 percent. In a typical summer month, that would mean an extra $3 on a residential bill, which includes the cost of generating the power and delivering it to a home, plus local taxes and fees. Electricity pricing is complicated, and it differs from state to state. In states where power providers are allowed to compete, such as Texas, Pennsylvania and New York, customers can shop around for cheaper electricity, although delivery charges are still set by regulators. Natural gas has plummeted in price because of a dramatic increase in U.S. gas production over the past few years and a warm winter that allowed supplies to build up. Even though coal accounts for 38 percent of all power produced in the U.S., natural gas plays an outsized role in determining the price of electricity. The price paid for electricity from the last power plant fired up to meet demand at any given moment is what sets the wholesale price for a given region. And since gas-fired power plants are usually the most expensive, they tend to be fired up last. Cheaper natural gas has led to lower wholesale power prices. Power companies operating in states with competitive markets, such as Exelon Corp. and NRG Energy Inc., have seen profits and stock prices tumble along with wholesale prices. Those operating in more regulated power markets, such as Southern Co. and Dominion Resources Inc., have fared much better because their rates don't fluctuate as much. The lower wholesale prices have made it through to some customers' bills, and others could see a temporary dip next year. At the very least, analysts say, the drop in natural gas prices is keeping electric rates from rising faster than they otherwise would have. Customers could still get a break this summer — if not on their electric rates, then at least from Mother Nature. This summer has gotten off to a scorching start in much of the country and is expected to be hotter than normal. But it isn't expected to be as hot as the last two summers, according to Matt Rogers at Commodity Weather Group, which provides forecasts for the energy industry. Don't get too excited, though. The Energy Department's Hodge calculates that if the summer forecast holds true, customers will save an average of $5.95 per month.
URL to original article: http://www.thebusinessjournal.com/news/national/2515-electric-rates-not-falling-along-with-fuel-costs
For further information on Fresno Real Estate check: http://www.londonproperties.com
A plunge in the price of natural gas has made it cheaper for utilities to produce electricity. But the savings aren't translating to lower rates for customers. Instead, U.S. electricity prices are going up. Electricity prices are forecast to rise slightly this summer. But any increase is noteworthy because natural gas, which is used to produce nearly a third of the country's power, is 43 percent cheaper than a year ago. A long-term downward trend in power prices could be starting to reverse, analysts say. "It's caused us to scratch our heads," says Tyler Hodge, an analyst at the Energy Department who studies electricity prices. The recent heat wave that gripped much of the country increased demand for power as families cranked up their air conditioners. And that may boost some June utility bills. But the nationwide rise in electricity prices is attributable to other factors, analysts say: — In many states, retail electricity rates are set by regulators every few years. As a result, lower power costs haven't yet made their way to customers. — Utilities often lock in their costs for natural gas and other fuels years in advance. That helps protect customers when fuel prices spike, but it prevents customers from reaping the benefits of a price drop. — The cost of actually delivering electricity, which accounts for 40 percent of a customer's bill on average, has been rising fast. That has eaten up any potential savings from the production of electricity. Utilities are building transmission lines, installing new equipment and fixing up power plants after what analysts say has been years of under-investment. This may reverse what has been a gradual decline in retail electricity prices. Adjusted for inflation, the average retail electricity price has been drifting mostly lower since 1984, when it was 16.7 cents per kilowatt-hour. "The ratepayer is going to have to foot the bill," says David Wright, vice chairman of the South Carolina Public Service Commission and president of the National Association of Regulatory Commissioners. The average U.S. residential electricity price is expected to be 12.4 cents per kilowatt hour for the June-to-August period, up 2.4 percent from the same time last year. For the full year, electricity prices are expected to rise 2 percent. In a typical summer month, that would mean an extra $3 on a residential bill, which includes the cost of generating the power and delivering it to a home, plus local taxes and fees. Electricity pricing is complicated, and it differs from state to state. In states where power providers are allowed to compete, such as Texas, Pennsylvania and New York, customers can shop around for cheaper electricity, although delivery charges are still set by regulators. Natural gas has plummeted in price because of a dramatic increase in U.S. gas production over the past few years and a warm winter that allowed supplies to build up. Even though coal accounts for 38 percent of all power produced in the U.S., natural gas plays an outsized role in determining the price of electricity. The price paid for electricity from the last power plant fired up to meet demand at any given moment is what sets the wholesale price for a given region. And since gas-fired power plants are usually the most expensive, they tend to be fired up last. Cheaper natural gas has led to lower wholesale power prices. Power companies operating in states with competitive markets, such as Exelon Corp. and NRG Energy Inc., have seen profits and stock prices tumble along with wholesale prices. Those operating in more regulated power markets, such as Southern Co. and Dominion Resources Inc., have fared much better because their rates don't fluctuate as much. The lower wholesale prices have made it through to some customers' bills, and others could see a temporary dip next year. At the very least, analysts say, the drop in natural gas prices is keeping electric rates from rising faster than they otherwise would have. Customers could still get a break this summer — if not on their electric rates, then at least from Mother Nature. This summer has gotten off to a scorching start in much of the country and is expected to be hotter than normal. But it isn't expected to be as hot as the last two summers, according to Matt Rogers at Commodity Weather Group, which provides forecasts for the energy industry. Don't get too excited, though. The Energy Department's Hodge calculates that if the summer forecast holds true, customers will save an average of $5.95 per month.
URL to original article: http://www.thebusinessjournal.com/news/national/2515-electric-rates-not-falling-along-with-fuel-costs
For further information on Fresno Real Estate check: http://www.londonproperties.com
Report: Fresno metro decent in workforce transit
Source: The Business Journal
The Fresno metro area was fairly adequate in providing transit to its workforce, according to a new report by the Brookings Institution, a Washington D.C. think tank. Out of 100 of the nation's largest metropolitan areas, Fresno and its surrounding cities ranked 50 in terms of its transit coverage, with 70.3 percent of jobs in neighborhoods with public transit service, 99.1 percent within cities and 28.5 percent from suburbs only. The region ranked 8 in terms of its labor access rate, with 45.8 percent of the working population able to get to the job site within 90 minutes via public transit, 47.1 percent within cities and 37.1 percent from the suburbs. The area's finance, insurance and real estate industry led the way with transit coverage at 83.8 percent and labor access at 47 percent, while agriculture lagged at 40 percent and 46 percent respectively. That compares with the national average of 75.5 percent of jobs in neighborhoods with fixed route transit service, 94.7 percent in the city and 64 percent from suburbs. Western states were in a slightly better position at 86.6 percent, 95.3 percent and 80.1 percent respectively. The typical job is accessible to only about 27 percent of its metropolitan workforce by public transit within 90 minutes. The Bakersfield metro ranked 49 in terms of transit coverage at 70.3 percent while its 90-minute labor access rate ranked 19 at 35 percent. The Modesto metro ranked 16 for transit coverage at 84.2 percent and 15 for labor access at 38.5 percent. The report noted that the average distance to work jumped from 9.9 miles in 1983 to 13.3 miles in 2009 while the average number of hours wasted in traffic increased from 14 hours to 34 hours. Congestion geographically limits business markets, raises business-related transportation costs and forces business to increase wages to compensate for the burden, the report said. Public transit frees up a lot of that congestion by taking cars off the road, while metros that plan their transit systems to connect with the broadest labor pool fared the best in the report.
URL to original article: http://www.thebusinessjournal.com/news/transportation/2518-report-fresno-metro-decent-in-workforce-transit
For further information on Fresno Real Estate check: http://www.londonproperties.com
The Fresno metro area was fairly adequate in providing transit to its workforce, according to a new report by the Brookings Institution, a Washington D.C. think tank. Out of 100 of the nation's largest metropolitan areas, Fresno and its surrounding cities ranked 50 in terms of its transit coverage, with 70.3 percent of jobs in neighborhoods with public transit service, 99.1 percent within cities and 28.5 percent from suburbs only. The region ranked 8 in terms of its labor access rate, with 45.8 percent of the working population able to get to the job site within 90 minutes via public transit, 47.1 percent within cities and 37.1 percent from the suburbs. The area's finance, insurance and real estate industry led the way with transit coverage at 83.8 percent and labor access at 47 percent, while agriculture lagged at 40 percent and 46 percent respectively. That compares with the national average of 75.5 percent of jobs in neighborhoods with fixed route transit service, 94.7 percent in the city and 64 percent from suburbs. Western states were in a slightly better position at 86.6 percent, 95.3 percent and 80.1 percent respectively. The typical job is accessible to only about 27 percent of its metropolitan workforce by public transit within 90 minutes. The Bakersfield metro ranked 49 in terms of transit coverage at 70.3 percent while its 90-minute labor access rate ranked 19 at 35 percent. The Modesto metro ranked 16 for transit coverage at 84.2 percent and 15 for labor access at 38.5 percent. The report noted that the average distance to work jumped from 9.9 miles in 1983 to 13.3 miles in 2009 while the average number of hours wasted in traffic increased from 14 hours to 34 hours. Congestion geographically limits business markets, raises business-related transportation costs and forces business to increase wages to compensate for the burden, the report said. Public transit frees up a lot of that congestion by taking cars off the road, while metros that plan their transit systems to connect with the broadest labor pool fared the best in the report.
URL to original article: http://www.thebusinessjournal.com/news/transportation/2518-report-fresno-metro-decent-in-workforce-transit
For further information on Fresno Real Estate check: http://www.londonproperties.com
Mortgage applications fall 2.1%
Source: Housingwire
By Kerri Ann Panchuk
Mortgage applications fell 2.1% last week, the Mortgage Bankers Association said Wednesday. The weekly results were adjusted for the July 4th holiday. The refinance index alone declined 3% from the prior week, while the purchase index increased 3%, suggesting an uptick in home buying activity while refinancings cooled. The refinance share of mortgage activity declined to 77% of total applications, while the adjustable-rate mortgage share of activity remained around 4% of all applications. The average loan size of all loans purchased hit $240,897 in June, down from $243,722 in May. Meanwhile, the average loan size under refinancing hit $218,619, compared to $243,733 the previous month. The average contract interest rate for a 30-year, fixed-rate mortgage with a conforming loan balance of $417,500 or less declined to 3.79%, the lowest rate in the survey's history. In addition, the average contract interest rate for a 30-year, FRM jumbo loan declined from 4.08% to 4.05%. The average rate for 30-year, FRMs backed by the FHA declined from 3.69% to 3.63%. Meanwhile, the 15-year, FRM fell from 3.20% to 3.15%, and the average rate for 5/1 ARMs declined from 2.76% to 2.71%.
URL to original article: http://www.housingwire.com/news/mortgage-applications-fall-21
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Kerri Ann Panchuk
Mortgage applications fell 2.1% last week, the Mortgage Bankers Association said Wednesday. The weekly results were adjusted for the July 4th holiday. The refinance index alone declined 3% from the prior week, while the purchase index increased 3%, suggesting an uptick in home buying activity while refinancings cooled. The refinance share of mortgage activity declined to 77% of total applications, while the adjustable-rate mortgage share of activity remained around 4% of all applications. The average loan size of all loans purchased hit $240,897 in June, down from $243,722 in May. Meanwhile, the average loan size under refinancing hit $218,619, compared to $243,733 the previous month. The average contract interest rate for a 30-year, fixed-rate mortgage with a conforming loan balance of $417,500 or less declined to 3.79%, the lowest rate in the survey's history. In addition, the average contract interest rate for a 30-year, FRM jumbo loan declined from 4.08% to 4.05%. The average rate for 30-year, FRMs backed by the FHA declined from 3.69% to 3.63%. Meanwhile, the 15-year, FRM fell from 3.20% to 3.15%, and the average rate for 5/1 ARMs declined from 2.76% to 2.71%.
URL to original article: http://www.housingwire.com/news/mortgage-applications-fall-21
For further information on Fresno Real Estate check: http://www.londonproperties.com
Tuesday, July 10, 2012
Americans see housing better in a mixed-signal economy
Source: Fannie Mae
Americans' Optimism About the Economy and Personal Finances Stalling Despite Underlying Continued Confidence in the Housing Market Consumer Attitudes Demonstrative of Macroeconomic Indicators
Pete Bakel 202-752-2034 WASHINGTON, DC –
Housing market confidence among Americans continues to trend in a positive direction despite stalling optimism about the economy and personal finances, according to results from Fannie Mae’s June 2012 National Housing Survey. Results indicate flattening economic trends may be contributing to waning consumer expectations about their personal financial situation. Nevertheless, Americans’ continued positive sentiment about housing appears to remain buoyed by low house prices and interest rates at historically low levels. “While consumers remain cautious about the general economy, their attitudes toward the housing market continue to improve," said Doug Duncan, senior vice president and chief economist of Fannie Mae. "Although this positive trend may be short-lived if the general economy falters, one might ask whether consumers are increasingly seeing the current environment as a unique opportunity to buy a home while home prices remain depressed, rental costs are increasing, and interest rates are near historic lows.” Respondents expect home prices to increase 2 percent in the next year, on average, and 35 percent of Americans say that home prices will go up in the next twelve months (also the highest level recorded since the survey began in June 2010). In turn, the share of consumers who say they would buy if they were going to move increased by 6 percentage points this month (the highest level seen in the survey’s two-year history). At the same time, 36 percent of Americans think the economy is on the right track (down 2 percentage points since May) and 57 percent think the economy is on the wrong track (up 1 percentage point). The percentage of respondents who expect their financial situation to remain the same over the next year dropped by 4 percentage points from last month to 42 percent, while only 18 percent say their household income has improved (also down 4 percentage points).
SURVEY HIGHLIGHTS Homeownership and Renting •Average home price expectation hit 2.0 percent this month, a 0.6 percent increase from May and the highest value recorded since the survey began in June 2010. •Thirty-five percent of respondents say that home prices will go up in the next 12 months, the highest level recorded since the survey’s inception. •Thirty-seven percent of those surveyed think mortgage rates will go up in the next 12 months, a 4 percentage point decrease from last month. •The percentage who say it is a good time to buy increased slightly to 73 percent, matching the highest level recorded since the survey began two years ago, while the percentage who think it is a good time to sell remained at 15 percent. •On average, respondents expect home rental prices to increase by 4.0 percent over the next 12 months, generally steady since May. •Forty-eight percent of respondents think that home rental prices will go up in the next 12 months, while 5 percent think they will go down. •Sixty-nine percent of respondents said that they would buy if they were going to move, a 6 percentage point increase from last month and the highest level recorded since the survey’s inception. •The percentage of respondents who would rent decreased from 32 percent to 27 percent, the lowest number to date. The Economy and Household Finances •The upward trend of confidence that the economy is on the right track stalled this month, leveling at 36 percent. •The percentage of respondents who expect their personal financial situation to stay the same over the next 12 months decreased by 4 percentage points to 42 percent, while those who expect their situation to get better steadied at 43 percent. •Eighteen percent of respondents say their household income is significantly higher than it was 12 months ago, a 4 percentage point decrease and the lowest value seen since November 2011. •Household expenses remained stable this month, with 55 percent reporting that their expenses stayed about the same as they were 12 months ago. The most detailed consumer attitudinal survey of its kind, the Fannie Mae National Housing Survey polled 1,001 Americans via live telephone interview to assess their attitudes toward owning and renting a home, mortgage rates, homeownership distress, the economy, household finances, and overall consumer confidence. Homeowners and renters are asked more than 100 questions used to track attitudinal shifts (findings are compared to the same survey conducted monthly beginning June 2010). Fannie Mae conducts this survey and shares monthly and quarterly results so that we may help industry partners and market participants target our collective efforts to stabilize the housing market in the near-term, and provide support in the future. For detailed findings from the June 2012 survey, as well as a podcast providing an audio synopsis of the survey results and technical notes on survey methodology and questions asked of respondents associated with each monthly indicator, please visit the Fannie Mae Monthly National Housing Survey site. Also available on the site are quarterly survey results, which provide a detailed assessment of combined data results from three monthly studies. The June 2012 Fannie Mae National Housing Survey was conducted between June 4, 2012 and June 21, 2012. Interviews were conducted by Penn Schoen Berland, in coordination with Fannie Mae.
URL to original article: http://www.builderonline.com/builder-pulse/americans-see-housing-better-in-a-mixed-signal-economy.aspx?cid=BP:071012:JUMP
For further information on Fresno Real Estate check: http://www.londonproperties.com
Americans' Optimism About the Economy and Personal Finances Stalling Despite Underlying Continued Confidence in the Housing Market Consumer Attitudes Demonstrative of Macroeconomic Indicators
Pete Bakel 202-752-2034 WASHINGTON, DC –
Housing market confidence among Americans continues to trend in a positive direction despite stalling optimism about the economy and personal finances, according to results from Fannie Mae’s June 2012 National Housing Survey. Results indicate flattening economic trends may be contributing to waning consumer expectations about their personal financial situation. Nevertheless, Americans’ continued positive sentiment about housing appears to remain buoyed by low house prices and interest rates at historically low levels. “While consumers remain cautious about the general economy, their attitudes toward the housing market continue to improve," said Doug Duncan, senior vice president and chief economist of Fannie Mae. "Although this positive trend may be short-lived if the general economy falters, one might ask whether consumers are increasingly seeing the current environment as a unique opportunity to buy a home while home prices remain depressed, rental costs are increasing, and interest rates are near historic lows.” Respondents expect home prices to increase 2 percent in the next year, on average, and 35 percent of Americans say that home prices will go up in the next twelve months (also the highest level recorded since the survey began in June 2010). In turn, the share of consumers who say they would buy if they were going to move increased by 6 percentage points this month (the highest level seen in the survey’s two-year history). At the same time, 36 percent of Americans think the economy is on the right track (down 2 percentage points since May) and 57 percent think the economy is on the wrong track (up 1 percentage point). The percentage of respondents who expect their financial situation to remain the same over the next year dropped by 4 percentage points from last month to 42 percent, while only 18 percent say their household income has improved (also down 4 percentage points).
SURVEY HIGHLIGHTS Homeownership and Renting •Average home price expectation hit 2.0 percent this month, a 0.6 percent increase from May and the highest value recorded since the survey began in June 2010. •Thirty-five percent of respondents say that home prices will go up in the next 12 months, the highest level recorded since the survey’s inception. •Thirty-seven percent of those surveyed think mortgage rates will go up in the next 12 months, a 4 percentage point decrease from last month. •The percentage who say it is a good time to buy increased slightly to 73 percent, matching the highest level recorded since the survey began two years ago, while the percentage who think it is a good time to sell remained at 15 percent. •On average, respondents expect home rental prices to increase by 4.0 percent over the next 12 months, generally steady since May. •Forty-eight percent of respondents think that home rental prices will go up in the next 12 months, while 5 percent think they will go down. •Sixty-nine percent of respondents said that they would buy if they were going to move, a 6 percentage point increase from last month and the highest level recorded since the survey’s inception. •The percentage of respondents who would rent decreased from 32 percent to 27 percent, the lowest number to date. The Economy and Household Finances •The upward trend of confidence that the economy is on the right track stalled this month, leveling at 36 percent. •The percentage of respondents who expect their personal financial situation to stay the same over the next 12 months decreased by 4 percentage points to 42 percent, while those who expect their situation to get better steadied at 43 percent. •Eighteen percent of respondents say their household income is significantly higher than it was 12 months ago, a 4 percentage point decrease and the lowest value seen since November 2011. •Household expenses remained stable this month, with 55 percent reporting that their expenses stayed about the same as they were 12 months ago. The most detailed consumer attitudinal survey of its kind, the Fannie Mae National Housing Survey polled 1,001 Americans via live telephone interview to assess their attitudes toward owning and renting a home, mortgage rates, homeownership distress, the economy, household finances, and overall consumer confidence. Homeowners and renters are asked more than 100 questions used to track attitudinal shifts (findings are compared to the same survey conducted monthly beginning June 2010). Fannie Mae conducts this survey and shares monthly and quarterly results so that we may help industry partners and market participants target our collective efforts to stabilize the housing market in the near-term, and provide support in the future. For detailed findings from the June 2012 survey, as well as a podcast providing an audio synopsis of the survey results and technical notes on survey methodology and questions asked of respondents associated with each monthly indicator, please visit the Fannie Mae Monthly National Housing Survey site. Also available on the site are quarterly survey results, which provide a detailed assessment of combined data results from three monthly studies. The June 2012 Fannie Mae National Housing Survey was conducted between June 4, 2012 and June 21, 2012. Interviews were conducted by Penn Schoen Berland, in coordination with Fannie Mae.
URL to original article: http://www.builderonline.com/builder-pulse/americans-see-housing-better-in-a-mixed-signal-economy.aspx?cid=BP:071012:JUMP
For further information on Fresno Real Estate check: http://www.londonproperties.com
Monday, July 9, 2012
LPS: Foreclosure starts up 2.8% from one year ago
Source: Housingwire
By Jon Prior
Mortgage servicers started more foreclosures in May than a year ago, the first year-over-year increase since early 2011, according to Lender Processing Services ($25.32 -0.15%) data. Foreclosure starts increased 2.8% from May 2011 and climbed 11.6% from April 2012. Data from RealtyTrac released last month showed a similar rise in foreclosure starts. The numbers show the foreclosure process rebooting two months after state attorneys general and the five largest servicers struck a $25 billion settlement in March over past foreclosure abuses. Still, a backlog remains. Roughly 7.32% of all mortgages tracked by LPS are either in serious delinquency or somewhere in the foreclosure process. The percentage has been on the decline since hitting 7.69% at the beginning of the year. Some markets showed signs of continued elevated inventory in May, mostly judicial states where the amount of loans in serious delinquency or foreclosure dipped only 0.8%. That compares to a 7.1% decline in judicial states. In Florida, a judicial state, 13.7% of all loans were in the foreclosure process in May, nearly triple the national average and almost double the next closest state, New Jersey, where 7.6% of home loans are in foreclosure.
URL to original article: http://www.housingwire.com/news/lps-foreclosure-starts-28-one-year-ago
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Jon Prior
Mortgage servicers started more foreclosures in May than a year ago, the first year-over-year increase since early 2011, according to Lender Processing Services ($25.32 -0.15%) data. Foreclosure starts increased 2.8% from May 2011 and climbed 11.6% from April 2012. Data from RealtyTrac released last month showed a similar rise in foreclosure starts. The numbers show the foreclosure process rebooting two months after state attorneys general and the five largest servicers struck a $25 billion settlement in March over past foreclosure abuses. Still, a backlog remains. Roughly 7.32% of all mortgages tracked by LPS are either in serious delinquency or somewhere in the foreclosure process. The percentage has been on the decline since hitting 7.69% at the beginning of the year. Some markets showed signs of continued elevated inventory in May, mostly judicial states where the amount of loans in serious delinquency or foreclosure dipped only 0.8%. That compares to a 7.1% decline in judicial states. In Florida, a judicial state, 13.7% of all loans were in the foreclosure process in May, nearly triple the national average and almost double the next closest state, New Jersey, where 7.6% of home loans are in foreclosure.
URL to original article: http://www.housingwire.com/news/lps-foreclosure-starts-28-one-year-ago
For further information on Fresno Real Estate check: http://www.londonproperties.com
Tuesday, July 3, 2012
Turn negative equity into a positive
Source: Housingwire
by Ron Jasgur
Here’s a familiar scenario: Jane and John live in a nice house and pay their mortgage on time every month. Their outstanding loan amount is higher than the home’s market value, making them underwater borrowers. They wish they could move into a bigger house in a better neighborhood, but realize they’re stuck because they can’t sell for what they owe — let alone turn a profit into a down payment. The most responsible type of borrower today is jaded, to say the least. And they’re exactly the borrowers we should be helping. Banks need to create lending programs for perfect-credit borrowers who are underwater and held hostage by their current mortgage. Of course, it’s not as easy as all that — but it is doable — and is exactly the kind of program that the recent attorneys general national mortgage settlement should inspire. Why not help the creditworthy homeowner by using some of the recent attorneys general mortgage servicing settlement funds to pay the difference between market value and unpaid balance for those borrowers who wish to move? • We could make the investor whole at the time of sale • We could roll the deficiency into a new, performing unsecured loan • The bank recoups the AG money over the unsecured loan amortization period • The borrower’s credit profile would be unharmed • The housing market gets moving • Increased buyer activity instills confidence in the market • The bank gains a customer for life Let’s actively invite responsible owner-occupant homeowners into the market — and stop catering to whiners and walk-aways (where all of the focus is today). What’s more, if banks take an active (rather than a passive) role to get the industry moving, they’ll find myriad ways to turn problems into profits. This isn’t much different than rolling your last few car payments into a new lease. The biggest pool of potential buyers, the market’s biggest catalyst, is people who are stuck in a house they’d rather leave. They can’t or won’t take a loss and bring money to the table in order to sell — money they’d rather invest in a new home. According to the National Association of Realtors, 63% of recent homebuyers were repeat or move-up buyers, and 60% of buyers were first-time sellers. Simply put, the largest pool of potential homebuyers consists of those who already own a house. All of today’s existing assistance programs cater to the person who is delinquent or calculated to be at risk of imminent default. And the irony is, the root of that person’s problems is deeper than any of our programs can solve. Forgiving principal on a loan in default won’t solve the problem. But what would a stand-up homeowner say if you removed their shackles and helped them move? I’m picturing a dance, cartwheels and exclamations of joy. This is a giant population of people you can count on, who can pay a bigger bill, who would love to pay a larger mortgage if it meant they lived in the home of their dreams. This is how it looks: The Big Bad Bank turns into The Big Generous Community Institution, approaches Mr. 850 Credit Score and says, “We have a once in a lifetime opportunity for you. Because you have willingness to repay, because we see how diligent you’ve been in consistently paying your mortgage, because we agree that it’s awful to be underwater, we want to make you a deal. We’ll help you get out of the house you’re in and into a new house with a new loan from our bank. We’ll help you take advantage of today’s low interest rates and depressed pricing. We want to reward good values.” Now the bank is a good guy, not the enemy. A bank for life. It could even be more far-reaching. Banks could partner up with homebuilders and give preferential treatment to current customers who would consider new construction. Or, what if the bank took the REO and short sales already on its books and turned them from losers into special opportunities for current, paying customers? Part of the inventory problem today is that the biggest pool of buyers is prohibited from purchasing. Let’s drive the economy with new homes, with people who want to spend money, who have good jobs and good credit. Let’s shift the large percentage of housing inventory from investors to owner-occupants — who can and will improve the neighborhoods they live in. So far in 2012, investors have purchased more than 40% of the REO sold via OfferSubmission and more than 55% of transactions were closed with cash. These telling numbers suggest that the liquidation strategy of bank-owned properties is weighted heavily toward moving volume and less about creating value for shareholders and taxpayers alike. Those who can turn the housing economy around are owner-occupant buyers leveraging traditional financing options — with a twist. We need to embrace the homeowners who pay their bills, and create the programs that turn this ongoing crisis into a once-in-a-lifetime opportunity.
URL to original article: http://www.housingwire.com/news/turn-negative-equity-positive
For further information on Fresno Real Estate check: http://www.londonproperties.com
by Ron Jasgur
Here’s a familiar scenario: Jane and John live in a nice house and pay their mortgage on time every month. Their outstanding loan amount is higher than the home’s market value, making them underwater borrowers. They wish they could move into a bigger house in a better neighborhood, but realize they’re stuck because they can’t sell for what they owe — let alone turn a profit into a down payment. The most responsible type of borrower today is jaded, to say the least. And they’re exactly the borrowers we should be helping. Banks need to create lending programs for perfect-credit borrowers who are underwater and held hostage by their current mortgage. Of course, it’s not as easy as all that — but it is doable — and is exactly the kind of program that the recent attorneys general national mortgage settlement should inspire. Why not help the creditworthy homeowner by using some of the recent attorneys general mortgage servicing settlement funds to pay the difference between market value and unpaid balance for those borrowers who wish to move? • We could make the investor whole at the time of sale • We could roll the deficiency into a new, performing unsecured loan • The bank recoups the AG money over the unsecured loan amortization period • The borrower’s credit profile would be unharmed • The housing market gets moving • Increased buyer activity instills confidence in the market • The bank gains a customer for life Let’s actively invite responsible owner-occupant homeowners into the market — and stop catering to whiners and walk-aways (where all of the focus is today). What’s more, if banks take an active (rather than a passive) role to get the industry moving, they’ll find myriad ways to turn problems into profits. This isn’t much different than rolling your last few car payments into a new lease. The biggest pool of potential buyers, the market’s biggest catalyst, is people who are stuck in a house they’d rather leave. They can’t or won’t take a loss and bring money to the table in order to sell — money they’d rather invest in a new home. According to the National Association of Realtors, 63% of recent homebuyers were repeat or move-up buyers, and 60% of buyers were first-time sellers. Simply put, the largest pool of potential homebuyers consists of those who already own a house. All of today’s existing assistance programs cater to the person who is delinquent or calculated to be at risk of imminent default. And the irony is, the root of that person’s problems is deeper than any of our programs can solve. Forgiving principal on a loan in default won’t solve the problem. But what would a stand-up homeowner say if you removed their shackles and helped them move? I’m picturing a dance, cartwheels and exclamations of joy. This is a giant population of people you can count on, who can pay a bigger bill, who would love to pay a larger mortgage if it meant they lived in the home of their dreams. This is how it looks: The Big Bad Bank turns into The Big Generous Community Institution, approaches Mr. 850 Credit Score and says, “We have a once in a lifetime opportunity for you. Because you have willingness to repay, because we see how diligent you’ve been in consistently paying your mortgage, because we agree that it’s awful to be underwater, we want to make you a deal. We’ll help you get out of the house you’re in and into a new house with a new loan from our bank. We’ll help you take advantage of today’s low interest rates and depressed pricing. We want to reward good values.” Now the bank is a good guy, not the enemy. A bank for life. It could even be more far-reaching. Banks could partner up with homebuilders and give preferential treatment to current customers who would consider new construction. Or, what if the bank took the REO and short sales already on its books and turned them from losers into special opportunities for current, paying customers? Part of the inventory problem today is that the biggest pool of buyers is prohibited from purchasing. Let’s drive the economy with new homes, with people who want to spend money, who have good jobs and good credit. Let’s shift the large percentage of housing inventory from investors to owner-occupants — who can and will improve the neighborhoods they live in. So far in 2012, investors have purchased more than 40% of the REO sold via OfferSubmission and more than 55% of transactions were closed with cash. These telling numbers suggest that the liquidation strategy of bank-owned properties is weighted heavily toward moving volume and less about creating value for shareholders and taxpayers alike. Those who can turn the housing economy around are owner-occupant buyers leveraging traditional financing options — with a twist. We need to embrace the homeowners who pay their bills, and create the programs that turn this ongoing crisis into a once-in-a-lifetime opportunity.
URL to original article: http://www.housingwire.com/news/turn-negative-equity-positive
For further information on Fresno Real Estate check: http://www.londonproperties.com
California governor expected to sign foreclosure reforms
Source: Housingwire
By Jon Prior
Gov. Jerry Brown said he fully supports the new requirements for mortgage servicers under the Homeowner Bill of Rights passed by the California State Legislature Monday. "The Homeowner Bill of Rights will prevent banks from throwing Californians out of their homes while they are trying, in good faith, to renegotiate their mortgages," Brown said in a statement. "This bill establishes important consumer protections that are long overdue and I commend Attorney General Kamala Harris for her determined pursuit of these changes." His office did not say when the governor is expected to sign the legislation. Democrat lawmakers took just four months to push a series of bills through both chambers since introducing them earlier this year. Many of the requirements were built around similar requirements under the national $25 billion foreclosure settlement California Attorney General Kamala Harris and 48 other states signed onto in March. Oklahoma did not sign the settlement. The bills passed Monday end the practice of dual-track foreclosures, by which mortgage servicers continue the foreclosure process on borrowers while simultaneously considering them for a modification. They also require servicers to provide documentation to the borrower establishing the right to foreclosure before filing a default notice, and the bills levy civil penalties for filing fraudulent affidavits and other paperwork with counties. Other bills give Harris new powers to pursue financial crimes across several jurisdictions. The bills faced significant opposition from the mortgage industry. "The California foreclosure laws are misguided and damaging," said Anthony Sanders, an economist at George Mason University, in a blog post Tuesday. "Essentially, would you lend money to someone in California if you knew that it is more difficult to enforce a foreclosure if the borrower defaults?" Roughly 263,500 properties in California received a foreclosure filing in the first six months of 2012, the highest total in the nation, according to RealtyTrac. Filings dropped 13% from last year. It takes an average 274 days to foreclose on a property in California after the notice of default is filed, one of the shortest timelines in the country, according to ForeclosureRadar. "Californians will finally have a fighting chance to keep their homes, as this measure brings fairness to the loan modification and foreclosure process," said California Senate President pro Tem Darrell Steinberg.
URL to original article: http://www.housingwire.com/news/california-governor-expected-sign-foreclosure-reforms
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Jon Prior
Gov. Jerry Brown said he fully supports the new requirements for mortgage servicers under the Homeowner Bill of Rights passed by the California State Legislature Monday. "The Homeowner Bill of Rights will prevent banks from throwing Californians out of their homes while they are trying, in good faith, to renegotiate their mortgages," Brown said in a statement. "This bill establishes important consumer protections that are long overdue and I commend Attorney General Kamala Harris for her determined pursuit of these changes." His office did not say when the governor is expected to sign the legislation. Democrat lawmakers took just four months to push a series of bills through both chambers since introducing them earlier this year. Many of the requirements were built around similar requirements under the national $25 billion foreclosure settlement California Attorney General Kamala Harris and 48 other states signed onto in March. Oklahoma did not sign the settlement. The bills passed Monday end the practice of dual-track foreclosures, by which mortgage servicers continue the foreclosure process on borrowers while simultaneously considering them for a modification. They also require servicers to provide documentation to the borrower establishing the right to foreclosure before filing a default notice, and the bills levy civil penalties for filing fraudulent affidavits and other paperwork with counties. Other bills give Harris new powers to pursue financial crimes across several jurisdictions. The bills faced significant opposition from the mortgage industry. "The California foreclosure laws are misguided and damaging," said Anthony Sanders, an economist at George Mason University, in a blog post Tuesday. "Essentially, would you lend money to someone in California if you knew that it is more difficult to enforce a foreclosure if the borrower defaults?" Roughly 263,500 properties in California received a foreclosure filing in the first six months of 2012, the highest total in the nation, according to RealtyTrac. Filings dropped 13% from last year. It takes an average 274 days to foreclose on a property in California after the notice of default is filed, one of the shortest timelines in the country, according to ForeclosureRadar. "Californians will finally have a fighting chance to keep their homes, as this measure brings fairness to the loan modification and foreclosure process," said California Senate President pro Tem Darrell Steinberg.
URL to original article: http://www.housingwire.com/news/california-governor-expected-sign-foreclosure-reforms
For further information on Fresno Real Estate check: http://www.londonproperties.com
Monday, July 2, 2012
California Homeowner Bill of Rights passes, sent to governor
Source: Housingwire
By Justin T. Hilley
Two central provisions of the California Homeowner Bill of Rights passed the California State Legislature Monday. The bills will travel to Gov. Jerry Brown’s desk, where other provisions of the bill also await approval. Brown has not indicated whether he will sign or veto the legislation. The Assembly, by a vote of 53 to 25, and Senate, 24 to 13, approved the Foreclosure Reduction Act, which restricts the process of dual-tracked foreclosures and the Due Process Rights Act, which guarantees a single point of contact for struggling homeowners to discuss their loan. The latter also imposes civil penalties on the practice of fraudulently signing foreclosure documents without verifying their accuracy. The Foreclosure Reduction Act bars lenders from filing notices of default, notices of sale, or conducting trustees’ sales while also considering alternatives to foreclosures like loan modifications or short sales. “These common-sense reforms will require banks to treat California homeowners more fairly and bring more transparency and accountability to their practices in our state,” said California Attorney General Kamala Harris. “Responsible homeowners will have a better shot to keep their homes.” The bills' passage comes the day after the release of a study authored by research and consulting firm Beacon Economics on behalf of industry groups, concluding that if the Homeowner Bill of Rights were signed into law it would ultimately harm the vast majority of California homeowners. The bills impose stricter rules on mortgage servicers seeking to nonjudicially foreclose on homes with mortgages in default and expose mortgage servicers to substantial new legal liability, according to Beacon. Beacon argues the bills could add to the financial burden of distressed homeowners. “The nonjudicial foreclosure process is more efficient compared to the judicial foreclosure process, and it comes with an important caveat," the study notes. "When using nonjudicial foreclosure, lenders … cannot seek compensation for their mortgage losses out of the borrower’s other assets. If the nonjudicial route is lengthened and made more costly, many lenders may decide to pursue a judicial foreclosure ... and thus pursue remedies like deficiency judgments, ultimately costing the borrower more in the long run,” the study said. Calling the bills “monumental,” State Sen. Darrell Steinberg, D-Sacramento, said people came together from different points of views over the course of 20 hours. “This is how the process should work,” Steinberg said. “We achieved a middle ground. Let this be the first of a number of things we get done this week.”
URL to original article: http://www.housingwire.com/news/california-homeowner-bill-rights-sent-governor-sign-or-veto
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Justin T. Hilley
Two central provisions of the California Homeowner Bill of Rights passed the California State Legislature Monday. The bills will travel to Gov. Jerry Brown’s desk, where other provisions of the bill also await approval. Brown has not indicated whether he will sign or veto the legislation. The Assembly, by a vote of 53 to 25, and Senate, 24 to 13, approved the Foreclosure Reduction Act, which restricts the process of dual-tracked foreclosures and the Due Process Rights Act, which guarantees a single point of contact for struggling homeowners to discuss their loan. The latter also imposes civil penalties on the practice of fraudulently signing foreclosure documents without verifying their accuracy. The Foreclosure Reduction Act bars lenders from filing notices of default, notices of sale, or conducting trustees’ sales while also considering alternatives to foreclosures like loan modifications or short sales. “These common-sense reforms will require banks to treat California homeowners more fairly and bring more transparency and accountability to their practices in our state,” said California Attorney General Kamala Harris. “Responsible homeowners will have a better shot to keep their homes.” The bills' passage comes the day after the release of a study authored by research and consulting firm Beacon Economics on behalf of industry groups, concluding that if the Homeowner Bill of Rights were signed into law it would ultimately harm the vast majority of California homeowners. The bills impose stricter rules on mortgage servicers seeking to nonjudicially foreclose on homes with mortgages in default and expose mortgage servicers to substantial new legal liability, according to Beacon. Beacon argues the bills could add to the financial burden of distressed homeowners. “The nonjudicial foreclosure process is more efficient compared to the judicial foreclosure process, and it comes with an important caveat," the study notes. "When using nonjudicial foreclosure, lenders … cannot seek compensation for their mortgage losses out of the borrower’s other assets. If the nonjudicial route is lengthened and made more costly, many lenders may decide to pursue a judicial foreclosure ... and thus pursue remedies like deficiency judgments, ultimately costing the borrower more in the long run,” the study said. Calling the bills “monumental,” State Sen. Darrell Steinberg, D-Sacramento, said people came together from different points of views over the course of 20 hours. “This is how the process should work,” Steinberg said. “We achieved a middle ground. Let this be the first of a number of things we get done this week.”
URL to original article: http://www.housingwire.com/news/california-homeowner-bill-rights-sent-governor-sign-or-veto
For further information on Fresno Real Estate check: http://www.londonproperties.com
Second Quarter Luxury Real Estate Numbers Strong
Source: PR Newswire
DALLAS, June 28, 2012 /PRNewswire/ -- Luxury home prices climbed and closings on some of the world's most beautiful properties picked up in the second quarter, bringing good news to those offering premium real estate in the U.S. and abroad. "The luxury real estate market appears to be vibrant in many places domestically and internationally," said Robbie Briggs, president and CEO of Briggs Freeman Sotheby's International Realty in Dallas. "In my experience, buyers are coming in with strong offers of cash or heavy down payments. For the first time in a long time, I see homeowners with renewed confidence in the second quarter, thanks to lower interest rates." The improvements in the luxury home market kept pace with reported gains in the domestic real estate market overall in recent months. Sales of existing homes of more than $1 million improved by nearly 17 percent in some regions in April over the same period in 2011, according to the National Association of Realtors. And new home sales at the high end of the market remained strong through May, according to statistics from the U.S. Department of Housing and Urban Development. Briggs' association with Sotheby's International Realty and its Global Partnership network gives him an opportunity to gather first-hand reports about luxury home sales from around the world, and he's hearing about an uptick in sales of premium properties everywhere: In Manhattan, people are buying co-ops and condos at top prices, and a penthouse on 57th Street just sold for more than $90 million - a record sale for New York City, according to Royce Pinkwater. Attracting buyers from around the U.S., Brazil and other countries, the Miami market has seen price per square foot rise 18 percent over the past year, and sales were up 66 percent in the first quarter, said Mayi de Ia Vega. Michael Rankin reported the demand for luxury homes has grown so much in Washington, D.C., that many are being offered as "private exclusives," and kept off of the multiple listing service. Even with the uncertainty in the stock market and a teetering global economy making buyers nervous, Gloria Smith in San Francisco said homes in the $5 million range continue to sell quickly. And that's just the domestic luxury real estate report. "In talking to many associates in Europe, I'm hearing about record-setting sales prices in Sweden and increased interest from Americans and Russians looking at villas in Italy," Briggs said. "On top of that, the European debt crisis has driven the world's super-rich to seek stable investments in high-end properties in London. "It all tells me that global prospects for luxury home sales are gradually strengthening." CEO Robbie Briggs independently owns and operates Briggs Freeman Sotheby's International Realty located in Dallas, Texas.
URL to original article: http://www.prnewswire.com/news-releases/second-quarter-luxury-real-estate-numbers-strong-160717935.html
For further information on Fresno Real Estate check: http://www.londonproperties.com
DALLAS, June 28, 2012 /PRNewswire/ -- Luxury home prices climbed and closings on some of the world's most beautiful properties picked up in the second quarter, bringing good news to those offering premium real estate in the U.S. and abroad. "The luxury real estate market appears to be vibrant in many places domestically and internationally," said Robbie Briggs, president and CEO of Briggs Freeman Sotheby's International Realty in Dallas. "In my experience, buyers are coming in with strong offers of cash or heavy down payments. For the first time in a long time, I see homeowners with renewed confidence in the second quarter, thanks to lower interest rates." The improvements in the luxury home market kept pace with reported gains in the domestic real estate market overall in recent months. Sales of existing homes of more than $1 million improved by nearly 17 percent in some regions in April over the same period in 2011, according to the National Association of Realtors. And new home sales at the high end of the market remained strong through May, according to statistics from the U.S. Department of Housing and Urban Development. Briggs' association with Sotheby's International Realty and its Global Partnership network gives him an opportunity to gather first-hand reports about luxury home sales from around the world, and he's hearing about an uptick in sales of premium properties everywhere: In Manhattan, people are buying co-ops and condos at top prices, and a penthouse on 57th Street just sold for more than $90 million - a record sale for New York City, according to Royce Pinkwater. Attracting buyers from around the U.S., Brazil and other countries, the Miami market has seen price per square foot rise 18 percent over the past year, and sales were up 66 percent in the first quarter, said Mayi de Ia Vega. Michael Rankin reported the demand for luxury homes has grown so much in Washington, D.C., that many are being offered as "private exclusives," and kept off of the multiple listing service. Even with the uncertainty in the stock market and a teetering global economy making buyers nervous, Gloria Smith in San Francisco said homes in the $5 million range continue to sell quickly. And that's just the domestic luxury real estate report. "In talking to many associates in Europe, I'm hearing about record-setting sales prices in Sweden and increased interest from Americans and Russians looking at villas in Italy," Briggs said. "On top of that, the European debt crisis has driven the world's super-rich to seek stable investments in high-end properties in London. "It all tells me that global prospects for luxury home sales are gradually strengthening." CEO Robbie Briggs independently owns and operates Briggs Freeman Sotheby's International Realty located in Dallas, Texas.
URL to original article: http://www.prnewswire.com/news-releases/second-quarter-luxury-real-estate-numbers-strong-160717935.html
For further information on Fresno Real Estate check: http://www.londonproperties.com
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