Source: Housingwire
Posted by Kerri Ann Panchuk on September 28, 2012 07:47 AM
Could a real estate recovery be in the works? Are we now at the start of a real estate comeback? These overly optimistic questions pop up in articles across the net, but Robert Bridges of Forbes is willing to ask an unpopular, but insightful, question: How are rising home prices populist in nature, especially when the values are lifted by federal housing policies rather than true consumer sentiment?
When the goal is to give everyone a shot at rightful homeownership, especially those 20- to 30-somethings who are saddled with student debt and modest-paying jobs, the market should reflect prices based on what those individuals can afford.
In other words, as demand goes one direction in terms of what they will pay, the price of the existing supply is supposed to follow until they cross paths once again. Only then, do we see a natural lift in prices based on consumers catching up and gaining a foothold in the economy.
Bridges argues current federal housing policies artificially lift prices, pulling power away from the free market. In turn, rising home prices are considered populist because it helps the seller and owner, but not necessarily the buyer. So in the supply-demand equation, the buyer's situation in the market is often considered last. When federal policies game prices, the buyer is often left out of the equation.
"For some time now, demand for houses has been artificially boosted by federal and state tax policies, rising governmental involvement in residential-debt financing, and persistently low interest rates orchestrated by the Federal Reserve," Bridges writes in his article. Bridges sees this as intensifying demand, lifting prices beyond the reach of moderate-income individuals.
Bridges suggests current housing policies are more gamed than populist in nature.
The real question is whether potential homebuyers have caught on.
URL to original article: http://www.housingwire.com/rewired/argument-against-rising-home-prices
For further information on Fresno Real Estate check: http://www.londonproperties.com
Friday, September 28, 2012
Thursday, September 27, 2012
Jobless claims fall by 26,000
Source: Housingwire
By Kerri Ann Panchuk
After weeks of rough jobs data, the labor market received a dose of optimistic news with jobless claims falling by 26,000 filings for the week ending September 22. Initial jobless claims hit 359,000 last week, down from a revised 385,000 filings a week earlier, the Labor Department said. Meanwhile, the four-week moving average hit 374,000, a decline of 4,500 filings. The report ends days of negative economic data in the wake of the Fed's decision to launch another round of quantitative easing to stimulate job creation. Despite the steep drop in jobless claims, economists warn the chronically unemployed have stopped looking for work or dropped out of the labor force altogether—factors not considered in the weekly filings. The total number of Americans receiving benefits through the government's program hit 5.1 million last week, an 11% decline from the prior week. Analysts with Econoday called it "the best single week decline since late July." The research firm said the drop in claims may be obscured by negative headlines on durable goods and second-quarter gross domestic product, but adds "it should definitely support the Dow through the session."
URL to original article: http://www.housingwire.com/news/jobless-claims-fall-26000
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Kerri Ann Panchuk
After weeks of rough jobs data, the labor market received a dose of optimistic news with jobless claims falling by 26,000 filings for the week ending September 22. Initial jobless claims hit 359,000 last week, down from a revised 385,000 filings a week earlier, the Labor Department said. Meanwhile, the four-week moving average hit 374,000, a decline of 4,500 filings. The report ends days of negative economic data in the wake of the Fed's decision to launch another round of quantitative easing to stimulate job creation. Despite the steep drop in jobless claims, economists warn the chronically unemployed have stopped looking for work or dropped out of the labor force altogether—factors not considered in the weekly filings. The total number of Americans receiving benefits through the government's program hit 5.1 million last week, an 11% decline from the prior week. Analysts with Econoday called it "the best single week decline since late July." The research firm said the drop in claims may be obscured by negative headlines on durable goods and second-quarter gross domestic product, but adds "it should definitely support the Dow through the session."
URL to original article: http://www.housingwire.com/news/jobless-claims-fall-26000
For further information on Fresno Real Estate check: http://www.londonproperties.com
Mortgage rates plummet to new lows
Source: Housingwire
By Justin T. Hilley
The Federal Reserve’s continued purchase of mortgage securities took the 30-year fixed-rate mortgage down to unchartered territory this week. The Freddie Mac survey showed the 30-year, FRM averaged 3.4% for the week ending Thursday, breaking through it’s all-time low set in July and falling from last week’s 3.49%. Last year at this time, the 30-year FRM averaged 4.01%. All mortgage products, except the 5-year adjustable-rate mortgage, averaged all-time lows. The 15-year FRM, a popular refinancing choice, averaged 2.73%, falling from 2.77% last week and setting a record low. A year ago, the average rate for a 15-year FRM was 3.28%. Five-year, Treasury-indexed, hybrid ARM averaged 2.71%, up from 2.76% last week and falling from 3.02% a year earlier. One-year, Treasury-indexed ARMs averaged 2.6%, down from last week’s 2.61%. A year ago, it averaged 2.83%. “Fixed mortgage rates continued to decline this week…and should support an already improving housing market,” Freddie Chief Economist Frank Nothaft said. He cited the S&P/Case-Shiller home price index, which rose 1.2% percent over the 12 months ending in July, reflecting the largest annual increase since August 2010. Sixteen of the 20 cities tracked in the index saw price growth, led by Phoenix’s 16.6% gain. And new home sales in July and August had the strongest two-month pace since March and April 2010. Home loan analytics firm Bankrate, which surveys large banks, reported that the 30-year FRM fell dramatically to 3.55% from 3.7%, while the 15-year FRM dropped to 2.88% from 2.95%. The 5/1 ARM slipped to 2.68% from 2.69% for the week.
URL to original article: http://www.housingwire.com/news/mortgage-rates-plummet-new-lows
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Justin T. Hilley
The Federal Reserve’s continued purchase of mortgage securities took the 30-year fixed-rate mortgage down to unchartered territory this week. The Freddie Mac survey showed the 30-year, FRM averaged 3.4% for the week ending Thursday, breaking through it’s all-time low set in July and falling from last week’s 3.49%. Last year at this time, the 30-year FRM averaged 4.01%. All mortgage products, except the 5-year adjustable-rate mortgage, averaged all-time lows. The 15-year FRM, a popular refinancing choice, averaged 2.73%, falling from 2.77% last week and setting a record low. A year ago, the average rate for a 15-year FRM was 3.28%. Five-year, Treasury-indexed, hybrid ARM averaged 2.71%, up from 2.76% last week and falling from 3.02% a year earlier. One-year, Treasury-indexed ARMs averaged 2.6%, down from last week’s 2.61%. A year ago, it averaged 2.83%. “Fixed mortgage rates continued to decline this week…and should support an already improving housing market,” Freddie Chief Economist Frank Nothaft said. He cited the S&P/Case-Shiller home price index, which rose 1.2% percent over the 12 months ending in July, reflecting the largest annual increase since August 2010. Sixteen of the 20 cities tracked in the index saw price growth, led by Phoenix’s 16.6% gain. And new home sales in July and August had the strongest two-month pace since March and April 2010. Home loan analytics firm Bankrate, which surveys large banks, reported that the 30-year FRM fell dramatically to 3.55% from 3.7%, while the 15-year FRM dropped to 2.88% from 2.95%. The 5/1 ARM slipped to 2.68% from 2.69% for the week.
URL to original article: http://www.housingwire.com/news/mortgage-rates-plummet-new-lows
For further information on Fresno Real Estate check: http://www.londonproperties.com
Tuesday, September 25, 2012
CoreLogic: Fresno foreclosures down from last year
Source: The Business Journal
Written by Ben Keller
Foreclosure rates in Fresno fell in July over the same period last year, according to newly released data from CoreLogic. Fresno area foreclosures in the month stood at 2.53 percent among outstanding mortgage loans compared with 2.90 percent in July 2011, marking 11 consecutive months of declines. That also beat the national foreclosure rate, which fell from 3.46 percent to 3.25 percent over the year but not California's foreclosure rate, which fell from 2.61 percent to 2.17 percent. The mortgage delinquency rate in Fresno also decreased, with 6.49 percent of mortgage loans more than 90 days delinquent in July compared with 8.36 percent last year. The national delinquency rate stood at 6.71 percent in July compared with 7.23 percent last year while California's rate fell 7.81 percent to 5.82 percent. Fresno's foreclosure rate in June was 2.57 percent while it's delinquency rate was 6.49 percent.
URL to original article: http://www.thebusinessjournal.com/news/real-estate/3371-corelogic-fresno-foreclosures-down-from-last-year
For further information on Fresno Real Estate check: http://www.londonproperties.com
Written by Ben Keller
Foreclosure rates in Fresno fell in July over the same period last year, according to newly released data from CoreLogic. Fresno area foreclosures in the month stood at 2.53 percent among outstanding mortgage loans compared with 2.90 percent in July 2011, marking 11 consecutive months of declines. That also beat the national foreclosure rate, which fell from 3.46 percent to 3.25 percent over the year but not California's foreclosure rate, which fell from 2.61 percent to 2.17 percent. The mortgage delinquency rate in Fresno also decreased, with 6.49 percent of mortgage loans more than 90 days delinquent in July compared with 8.36 percent last year. The national delinquency rate stood at 6.71 percent in July compared with 7.23 percent last year while California's rate fell 7.81 percent to 5.82 percent. Fresno's foreclosure rate in June was 2.57 percent while it's delinquency rate was 6.49 percent.
URL to original article: http://www.thebusinessjournal.com/news/real-estate/3371-corelogic-fresno-foreclosures-down-from-last-year
For further information on Fresno Real Estate check: http://www.londonproperties.com
Monday, September 24, 2012
Monday Morning Cup of Coffee: Flippers are back with cash in hand
Source: Housingwire
By Kerri Ann Panchuk
A look at stories across HousingWire's weekend desk, with more coverage to come on bigger issues: Servicers continue to capture the heat of economists and researchers who claim new data shows servicing shops were not equipped to process millions of loan modifications in the wake of the mortgage market meltdown. The Chicago Tribune elaborated on a report from the University of Chicago Booth School of Business and the National Bureau of Economic Research this past week. The report claims even under the best of circumstances, the government's loan modification program could have helped 3 to 4 million households. Yet, their best possible performance amounts to just one-third of that figure. The low expectations and turnout is attributed to servicing shops not having the support and operations needed to handle the influx. Real estate flippers have returned to the market with cash in hand. The latest Foreclosure News report from RealtyTrac says flippers are back. But unlike the shaky days of the late real estate boom, flippers are playing it safe and buying properties with cash rather than financing them. In turn, they are spending tens of thousands of dollars in renovations to later sell the cash-bought homes at a profit. Octavio Nuiry with RealtyTrac documents the development, saying "Flipping is big business. Nationally, investors flipped 99,567 homes in the first six months of 2012, up 25 percent from the 79,826 flipped properties in 2011." Three states have signed onto a contentious lawsuit challenging the legality of the Dodd-Frank financial reform bill, The Hill reported. Michigan, Oklahoma and South Carolina officials signed onto the suit, claiming the bill gives the Treasury too much power to liquidate a failing bank without having to consult with impacted states. Michigan Attorney General Bill Schuette is quoted in the piece as suggesting that Michigan alone has much to lose with its public-employee pension funds maintaining large investments in systemically important banks. No new bank failures were recorded by the FDIC in the past week.
URL to original article: http://www.housingwire.com/news/monday-morning-cup-coffee-flippers-are-back-cash-hand
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Kerri Ann Panchuk
A look at stories across HousingWire's weekend desk, with more coverage to come on bigger issues: Servicers continue to capture the heat of economists and researchers who claim new data shows servicing shops were not equipped to process millions of loan modifications in the wake of the mortgage market meltdown. The Chicago Tribune elaborated on a report from the University of Chicago Booth School of Business and the National Bureau of Economic Research this past week. The report claims even under the best of circumstances, the government's loan modification program could have helped 3 to 4 million households. Yet, their best possible performance amounts to just one-third of that figure. The low expectations and turnout is attributed to servicing shops not having the support and operations needed to handle the influx. Real estate flippers have returned to the market with cash in hand. The latest Foreclosure News report from RealtyTrac says flippers are back. But unlike the shaky days of the late real estate boom, flippers are playing it safe and buying properties with cash rather than financing them. In turn, they are spending tens of thousands of dollars in renovations to later sell the cash-bought homes at a profit. Octavio Nuiry with RealtyTrac documents the development, saying "Flipping is big business. Nationally, investors flipped 99,567 homes in the first six months of 2012, up 25 percent from the 79,826 flipped properties in 2011." Three states have signed onto a contentious lawsuit challenging the legality of the Dodd-Frank financial reform bill, The Hill reported. Michigan, Oklahoma and South Carolina officials signed onto the suit, claiming the bill gives the Treasury too much power to liquidate a failing bank without having to consult with impacted states. Michigan Attorney General Bill Schuette is quoted in the piece as suggesting that Michigan alone has much to lose with its public-employee pension funds maintaining large investments in systemically important banks. No new bank failures were recorded by the FDIC in the past week.
URL to original article: http://www.housingwire.com/news/monday-morning-cup-coffee-flippers-are-back-cash-hand
For further information on Fresno Real Estate check: http://www.londonproperties.com
Friday, September 21, 2012
Why the Candidates Aren’t Talking About Housing
Source: The Wall Street Journal
By Nick Timiraos
Few events have reshaped the nation over the last half-decade as much as the housing crisis—particularly in key battleground states such as Florida, Ohio, and Nevada. But neither the Obama nor the Romney campaign has had very much to say about it. Housing’s absence from the campaign debate has led to lots of head-scratching among pundits, though there is an obvious explanation for why it has taken a back seat: housing is a political loser. All potential fixes are messy. Some are very expensive and reward irresponsible behavior. None will be a cure-all. And each will leave someone feeling left out. That was the view articulated two years ago by Richard Berner, then the chief U.S. economist at Morgan Stanley, shortly before he joined Obama’s Treasury Department. “Many policy options are available to fix America’s dysfunctional housing and mortgage markets,” he wrote. “But the political will to deploy them is scarce.” President Barack Obama has shied away from much discussion of his housing record (it is hard to find on his campaign website), though he continues to push Congress to liberalize rules that would allow more homeowners to refinance, the latest in a series of programs his White House has put forward. His administration failed to spend large sums of the money it had allocated for reworking troubled mortgages, for which it has received heavy criticism from the left. White House officials have argued that those policies nevertheless helped move the mortgage industry towards providing more sustainable loan modifications, and default rates on modified loans are down significantly from four years ago. Though it has a better record stabilizing mortgage markets to keep credit flowing to borrowers who have been able to refinance loans and buy homes at ultralow interest rates, the administration has offered little in the way of concrete plans to remake failed mortgage giants Fannie Mae and Freddie Mac. The Federal Housing Administration is also facing unprecedented losses given its role backing large volumes of low-down-payment mortgages since 2007. Republican challenger Mitt Romney has offered little detail about what his administration would do differently, passing up what would seem to be a golden opportunity to put Mr. Obama on the defensive. One of his top economic advisors, Glenn Hubbard, was an early champion of the push to boost refinancing. Mr. Romney hasn’t embraced that issue, which would align him with Mr. Obama. Mr. Romney faces a delicate balancing act. He has criticized Mr. Obama’s housing-rescue efforts as simply kicking the can down the road and says that he would focus on growing the economy instead. But that leaves an impression that he might recommend doing even less for at-risk homeowners looking to the government for more help. If your opponent is unpopular for promising to fix the problem and then falling short, it could be risky to advertise that you would offer even less. Mr. Romney walked into this political minefield last October when he told a Nevada newspaper that foreclosures should be allowed to run their course. Nevada had recently passed a law that brought foreclosures to a standstill and has led to large declines in home sales. Critics jumped on the statement as proof of Mr. Romney’s apathy towards struggling borrowers. (Mr. Obama, as a candidate in 2008, argued that heavy-handed intervention, such as an interest-rate freeze and foreclosure moratorium proposed by Hillary Clinton, also risked delaying a market recovery). Mr. Romney’s campaign website, in a new page added this week, says he would promote foreclosure alternatives—presumably short sales, where banks allow homeowners to sell at a loss—for those who can’t afford to stay in their homes. It also says he would roll back a wave of forthcoming regulation designed to curtail the abuses of the subprime years, but which the mortgage industry and even some consumer advocates call ill-conceived. Mr. Obama has learned how difficult the housing problem is to fix, while Mr. Romney has discovered how hard it is to talk about in a sound-byte-driven campaign cycle. In short, housing doesn’t fit easily onto a bumper sticker. At least until next month’s presidential debates, a serious discussion may have to wait.
URL to original article: http://blogs.wsj.com/developments/2012/09/06/why-the-candidates-arent-talking-about-housing/
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Nick Timiraos
Few events have reshaped the nation over the last half-decade as much as the housing crisis—particularly in key battleground states such as Florida, Ohio, and Nevada. But neither the Obama nor the Romney campaign has had very much to say about it. Housing’s absence from the campaign debate has led to lots of head-scratching among pundits, though there is an obvious explanation for why it has taken a back seat: housing is a political loser. All potential fixes are messy. Some are very expensive and reward irresponsible behavior. None will be a cure-all. And each will leave someone feeling left out. That was the view articulated two years ago by Richard Berner, then the chief U.S. economist at Morgan Stanley, shortly before he joined Obama’s Treasury Department. “Many policy options are available to fix America’s dysfunctional housing and mortgage markets,” he wrote. “But the political will to deploy them is scarce.” President Barack Obama has shied away from much discussion of his housing record (it is hard to find on his campaign website), though he continues to push Congress to liberalize rules that would allow more homeowners to refinance, the latest in a series of programs his White House has put forward. His administration failed to spend large sums of the money it had allocated for reworking troubled mortgages, for which it has received heavy criticism from the left. White House officials have argued that those policies nevertheless helped move the mortgage industry towards providing more sustainable loan modifications, and default rates on modified loans are down significantly from four years ago. Though it has a better record stabilizing mortgage markets to keep credit flowing to borrowers who have been able to refinance loans and buy homes at ultralow interest rates, the administration has offered little in the way of concrete plans to remake failed mortgage giants Fannie Mae and Freddie Mac. The Federal Housing Administration is also facing unprecedented losses given its role backing large volumes of low-down-payment mortgages since 2007. Republican challenger Mitt Romney has offered little detail about what his administration would do differently, passing up what would seem to be a golden opportunity to put Mr. Obama on the defensive. One of his top economic advisors, Glenn Hubbard, was an early champion of the push to boost refinancing. Mr. Romney hasn’t embraced that issue, which would align him with Mr. Obama. Mr. Romney faces a delicate balancing act. He has criticized Mr. Obama’s housing-rescue efforts as simply kicking the can down the road and says that he would focus on growing the economy instead. But that leaves an impression that he might recommend doing even less for at-risk homeowners looking to the government for more help. If your opponent is unpopular for promising to fix the problem and then falling short, it could be risky to advertise that you would offer even less. Mr. Romney walked into this political minefield last October when he told a Nevada newspaper that foreclosures should be allowed to run their course. Nevada had recently passed a law that brought foreclosures to a standstill and has led to large declines in home sales. Critics jumped on the statement as proof of Mr. Romney’s apathy towards struggling borrowers. (Mr. Obama, as a candidate in 2008, argued that heavy-handed intervention, such as an interest-rate freeze and foreclosure moratorium proposed by Hillary Clinton, also risked delaying a market recovery). Mr. Romney’s campaign website, in a new page added this week, says he would promote foreclosure alternatives—presumably short sales, where banks allow homeowners to sell at a loss—for those who can’t afford to stay in their homes. It also says he would roll back a wave of forthcoming regulation designed to curtail the abuses of the subprime years, but which the mortgage industry and even some consumer advocates call ill-conceived. Mr. Obama has learned how difficult the housing problem is to fix, while Mr. Romney has discovered how hard it is to talk about in a sound-byte-driven campaign cycle. In short, housing doesn’t fit easily onto a bumper sticker. At least until next month’s presidential debates, a serious discussion may have to wait.
URL to original article: http://blogs.wsj.com/developments/2012/09/06/why-the-candidates-arent-talking-about-housing/
For further information on Fresno Real Estate check: http://www.londonproperties.com
Unproductive and unloved, Congress heads home
Source: McClatchy
By David Lightman and William Douglas | McClatchy Newspapers
WASHINGTON — The most disliked, unproductive Congress in decades planned to leave Washington this week until after the November election, departing without agreements on virtually every big issue it deals with: taxes, defense, spending, farms, even post office policy. Lawmakers spent Thursday pointing fingers and charging opponents with cynical political posturing. Among Congress’ last decisions was a characteristic 2012 judgment: Punt action until later. It will let the farm bill, a broad measure that sets the nation’s agriculture and food and nutrition assistance policies, expire Sept. 30. Congress also exits without any serious effort to edge away from the “fiscal cliff,” the prospect of economy-damaging budget chaos if it doesn’t act by year’s end. Bush-era tax cuts are due to expire, and automatic spending cuts will take effect unless alternatives are passed. The public is noticing, as the legislative failures stir uncertainty and further roil an already-weak economy. This Congress’ approval ratings were stuck at 13 percent in a Gallup survey Sept. 6-9, the lowest the pollster has ever logged this late in an election year since such measurements began in 1974. Yet lawmakers are slinking out of town, after a September session that was on and off for less than two weeks, following a summer recess that ran from Aug. 3 to Sept. 10. Congress is expected to return Nov. 13. “Leaving town in disgrace,” said Sen. John McCain, R-Ariz., a 30-year congressional veteran. “This is the most dysfunctional Congress I can remember,” said Craig Holman, government affairs lobbyist for Public Citizen, a nonpartisan consumer-advocacy group. “I’ve never seen Capitol Hill work so poorly.” Republicans and Democrats agree on this much: The inertia was spawned by the unusually hostile partisanship that’s come to dominate political dialogue and debate. The result of years-long trends, the parties have been all but purged of philosophical outliers. New England and mid-Atlantic Republican moderates have nearly vanished, and the centrist Democratic Blue Dog caucus shrank from roughly 54 members in the last Congress to fewer than half that now. That’s hardened the ideological lines, and leaders have had to become defenders of those ideologies instead of the consensus-builders they’ve been in the past. They’ve also spent much of the year blaming the other side. “I have always said the sooner we can do it, the better. There is no reason why we should inch closer to a cliff,” said California’s Nancy Pelosi, the Democratic leader in the House of Representatives. “The sooner that we can instill confidence in the economy that we can get this job done. And President Obama supported that one year ago, and the Republicans walked away.” No, the Republicans counter, it’s the Democrats who are stubborn. “We’ve got multiple crisis-level issues to deal with. And yet Democrats don’t want to do a thing,” Senate Republican leader Mitch McConnell of Kentucky said Thursday in a floor speech. “Never before has a president and a Senate done so little to confront challenges so great.” Efforts are quietly afoot to find some common ground. The farm bill is expected to pass later this year. In the Senate, a bipartisan “Gang of Eight” has been talking regularly about fiscal compromise, holding dinners and bringing in dozens of other senators. Congressional leaders are not involved. “The whole idea is to come up with an outline,” said Sen. Mike Johanns, R-Neb. Such talk has been going on for months, though, and it’s produced no tangible results. Last year, it took a summer’s worth of higher-level negotiations between the White House and congressional leaders before a last-minute agreement was reached to raise the nation’s debt limit and cut spending. The turmoil was a major factor in pushing financial rating agencies to lower the nation’s credit rating below AAA in August 2011 for the first time in 70 years. “The political brinksmanship of recent months highlights what we see as America’s governance and policymaking becoming less stable, less effective and less predictable than what we previously believed,” the credit rating agency Standard & Poor’s explained. Prospects for a new agreement have been elusive, and no one is going home optimistic. “If you kick the can down the road you continue to further uncertainty, and inconsistency, and a lack of predictability. That’s what this Congress has done, because it’s refused to deal with issues,” said Sen. Ben Nelson, D-Neb. It’s not just the major battles. This Congress also struggled to pass what’s usually routine legislation. Fights stalled action on highway legislation, extending domestic violence laws, providing disaster aid and keeping interest rates low on student loans. The lengthy summer recess didn’t cool passions; if anything, it inflamed them. No new 12-month budget would be considered. Instead, lawmakers were eyeing a six-month stopgap that funds the government through early next year. The farm bill got stuck because of disagreements over how to reduce spending on food stamps. The Senate adopted, in a bipartisan vote, a plan to cut billions from farm and food programs over the next decade. House Republicans wanted further reductions, however. Perhaps the most obvious victims of this war have been post offices. The 112th Congress has approved renaming more than 25 post offices so far but has failed to agree on an overhaul measure to rescue the financially strapped Postal Service. The agency reported losing $57 million a day in the last quarter, and it defaulted last month for the first time on health benefits payments for future retirees. It’s set to miss a second payment of $5.6 million at the end of this month. The Postal Service has been pressing Congress to allow it to do away with Saturday delivery and reduce its annual health payments. The Senate passed its version of a Postal Service bill in April, but the House has failed to act. Postmaster General Patrick Donahoe recently may have inadvertently summed up not only the plight of the post offices, but also the entire Congress. “This is no way to run any kind of business,” he said.
URL to original article: http://www.mcclatchydc.com/2012/09/20/169161/unproductive-and-unloved-congress.html#storylink=cpy
For further information on Fresno Real Estate check: http://www.londonproperties.com
By David Lightman and William Douglas | McClatchy Newspapers
WASHINGTON — The most disliked, unproductive Congress in decades planned to leave Washington this week until after the November election, departing without agreements on virtually every big issue it deals with: taxes, defense, spending, farms, even post office policy. Lawmakers spent Thursday pointing fingers and charging opponents with cynical political posturing. Among Congress’ last decisions was a characteristic 2012 judgment: Punt action until later. It will let the farm bill, a broad measure that sets the nation’s agriculture and food and nutrition assistance policies, expire Sept. 30. Congress also exits without any serious effort to edge away from the “fiscal cliff,” the prospect of economy-damaging budget chaos if it doesn’t act by year’s end. Bush-era tax cuts are due to expire, and automatic spending cuts will take effect unless alternatives are passed. The public is noticing, as the legislative failures stir uncertainty and further roil an already-weak economy. This Congress’ approval ratings were stuck at 13 percent in a Gallup survey Sept. 6-9, the lowest the pollster has ever logged this late in an election year since such measurements began in 1974. Yet lawmakers are slinking out of town, after a September session that was on and off for less than two weeks, following a summer recess that ran from Aug. 3 to Sept. 10. Congress is expected to return Nov. 13. “Leaving town in disgrace,” said Sen. John McCain, R-Ariz., a 30-year congressional veteran. “This is the most dysfunctional Congress I can remember,” said Craig Holman, government affairs lobbyist for Public Citizen, a nonpartisan consumer-advocacy group. “I’ve never seen Capitol Hill work so poorly.” Republicans and Democrats agree on this much: The inertia was spawned by the unusually hostile partisanship that’s come to dominate political dialogue and debate. The result of years-long trends, the parties have been all but purged of philosophical outliers. New England and mid-Atlantic Republican moderates have nearly vanished, and the centrist Democratic Blue Dog caucus shrank from roughly 54 members in the last Congress to fewer than half that now. That’s hardened the ideological lines, and leaders have had to become defenders of those ideologies instead of the consensus-builders they’ve been in the past. They’ve also spent much of the year blaming the other side. “I have always said the sooner we can do it, the better. There is no reason why we should inch closer to a cliff,” said California’s Nancy Pelosi, the Democratic leader in the House of Representatives. “The sooner that we can instill confidence in the economy that we can get this job done. And President Obama supported that one year ago, and the Republicans walked away.” No, the Republicans counter, it’s the Democrats who are stubborn. “We’ve got multiple crisis-level issues to deal with. And yet Democrats don’t want to do a thing,” Senate Republican leader Mitch McConnell of Kentucky said Thursday in a floor speech. “Never before has a president and a Senate done so little to confront challenges so great.” Efforts are quietly afoot to find some common ground. The farm bill is expected to pass later this year. In the Senate, a bipartisan “Gang of Eight” has been talking regularly about fiscal compromise, holding dinners and bringing in dozens of other senators. Congressional leaders are not involved. “The whole idea is to come up with an outline,” said Sen. Mike Johanns, R-Neb. Such talk has been going on for months, though, and it’s produced no tangible results. Last year, it took a summer’s worth of higher-level negotiations between the White House and congressional leaders before a last-minute agreement was reached to raise the nation’s debt limit and cut spending. The turmoil was a major factor in pushing financial rating agencies to lower the nation’s credit rating below AAA in August 2011 for the first time in 70 years. “The political brinksmanship of recent months highlights what we see as America’s governance and policymaking becoming less stable, less effective and less predictable than what we previously believed,” the credit rating agency Standard & Poor’s explained. Prospects for a new agreement have been elusive, and no one is going home optimistic. “If you kick the can down the road you continue to further uncertainty, and inconsistency, and a lack of predictability. That’s what this Congress has done, because it’s refused to deal with issues,” said Sen. Ben Nelson, D-Neb. It’s not just the major battles. This Congress also struggled to pass what’s usually routine legislation. Fights stalled action on highway legislation, extending domestic violence laws, providing disaster aid and keeping interest rates low on student loans. The lengthy summer recess didn’t cool passions; if anything, it inflamed them. No new 12-month budget would be considered. Instead, lawmakers were eyeing a six-month stopgap that funds the government through early next year. The farm bill got stuck because of disagreements over how to reduce spending on food stamps. The Senate adopted, in a bipartisan vote, a plan to cut billions from farm and food programs over the next decade. House Republicans wanted further reductions, however. Perhaps the most obvious victims of this war have been post offices. The 112th Congress has approved renaming more than 25 post offices so far but has failed to agree on an overhaul measure to rescue the financially strapped Postal Service. The agency reported losing $57 million a day in the last quarter, and it defaulted last month for the first time on health benefits payments for future retirees. It’s set to miss a second payment of $5.6 million at the end of this month. The Postal Service has been pressing Congress to allow it to do away with Saturday delivery and reduce its annual health payments. The Senate passed its version of a Postal Service bill in April, but the House has failed to act. Postmaster General Patrick Donahoe recently may have inadvertently summed up not only the plight of the post offices, but also the entire Congress. “This is no way to run any kind of business,” he said.
URL to original article: http://www.mcclatchydc.com/2012/09/20/169161/unproductive-and-unloved-congress.html#storylink=cpy
For further information on Fresno Real Estate check: http://www.londonproperties.com
Thursday, September 20, 2012
Realtors: Valley home sales, prices improve in August
Source: The Business Journal
Written by Business Journal staff
California home sales declined in August but maintained a strong pace over last year. August marked the fifth consecutive month that sales were higher than the same month the previous year. According to a report by the California Association of Realtors, 511,240 single-family homes sold in the month, down 3.4 percent from July but up 2.3 percent from August 2011. The median price of a home picked up to $343,820, 3 percent higher than July prices and 15.5 percent higher than last year. In Fresno County, sales increased 4.7 percent in August but declined 10.4 percent compared to last year. The median home price of $151,110 was up 1.4 percent from July and 6.8 percent from a year ago. Kings County's sales in the month were even with July but up 3.5 percent from August 2011. At $155,710, the median home price was 10.3 percent higher than the prior month and 19.8 higher than last year. Madera County saw home sales pick up 5.7 percent over July but drop 17.8 percent compared to last year. The median home price of $127,500 was 7.7 percent higher than July but 1 percent below last year's price. In Tulare County, sales improved 10.5 percent in the month but declined 1.7 percent compared to a year ago. Prices picked up 7.4 percent over July and 4.9 percent over last year to a median price of $130,800 in August. California's unsold inventory index, or number of months to deplete the supply of homes at the current sales rate, was 3.2 months in August compared to 3.5 months in July and 5.2 months in August 2011. The median number of days it took to sell a single-family home fell to 41.1 days compared to 43.2 days in July and 52.5 days in August 2011. "A lack of inventory remains an issue, as the housing supply fell more than 30 percent from last year," said C.A.R. President LeFrancis Arnold, in a press release. "Inventory levels are at at the lowest levels we've seen in seven years and we are starting to see the supply shortage conditions having a negative impact on sales in the Central Valley and the Inland Empire, where REO (bank-owned) properties are in short supply."
URL to original article: http://www.thebusinessjournal.com/news/real-estate/3285-realtors-valley-home-sales-prices-improve-in-august
For further information on Fresno Real Estate check: http://www.londonproperties.com
Written by Business Journal staff
California home sales declined in August but maintained a strong pace over last year. August marked the fifth consecutive month that sales were higher than the same month the previous year. According to a report by the California Association of Realtors, 511,240 single-family homes sold in the month, down 3.4 percent from July but up 2.3 percent from August 2011. The median price of a home picked up to $343,820, 3 percent higher than July prices and 15.5 percent higher than last year. In Fresno County, sales increased 4.7 percent in August but declined 10.4 percent compared to last year. The median home price of $151,110 was up 1.4 percent from July and 6.8 percent from a year ago. Kings County's sales in the month were even with July but up 3.5 percent from August 2011. At $155,710, the median home price was 10.3 percent higher than the prior month and 19.8 higher than last year. Madera County saw home sales pick up 5.7 percent over July but drop 17.8 percent compared to last year. The median home price of $127,500 was 7.7 percent higher than July but 1 percent below last year's price. In Tulare County, sales improved 10.5 percent in the month but declined 1.7 percent compared to a year ago. Prices picked up 7.4 percent over July and 4.9 percent over last year to a median price of $130,800 in August. California's unsold inventory index, or number of months to deplete the supply of homes at the current sales rate, was 3.2 months in August compared to 3.5 months in July and 5.2 months in August 2011. The median number of days it took to sell a single-family home fell to 41.1 days compared to 43.2 days in July and 52.5 days in August 2011. "A lack of inventory remains an issue, as the housing supply fell more than 30 percent from last year," said C.A.R. President LeFrancis Arnold, in a press release. "Inventory levels are at at the lowest levels we've seen in seven years and we are starting to see the supply shortage conditions having a negative impact on sales in the Central Valley and the Inland Empire, where REO (bank-owned) properties are in short supply."
URL to original article: http://www.thebusinessjournal.com/news/real-estate/3285-realtors-valley-home-sales-prices-improve-in-august
For further information on Fresno Real Estate check: http://www.londonproperties.com
Central Valley cities among poorest in US
Source: The Business Journal
Written by GOSIA WOZNIACKA,Associated Press
(AP) — Three metropolitan areas in California's Central Valley, the region with the highest farm revenues in the country, rank among the poorest in the state and nation, Census figures released Thursday show. Fresno, Modesto and Bakersfield-Delano areas are among the top five U.S. regions with the highest percentage of residents living below the poverty line. The Fresno area, ranked as the second most impoverished in the nation, trailed only the U.S.-Mexico border area of McAllen-Edinburg-Mission, Texas, the American Community Survey figures show. Bakersfield-Delano and Modesto ranked fourth and fifth. The data compared large metro areas in 2011 of half million people or more. The valley's poverty rate is high even though its agricultural productivity is soaring. California is home to a $35 billion agricultural industry and Fresno County produces more than $5.6 billion in agricultural products. One in four people in the county lived under the poverty line in 2011. In California, one in six residents lived in poverty. California's poverty rate went up slightly, from 15.8 to 16.6 percent. Median income fell from $59,540 in 2010 to $57,287 in 2011. In Fresno County, median income fell from $46,479 to $42,807. Unemployment in the county rose to 16 percent and food stamp use increased to nearly 18 percent. By comparison, the statewide unemployment rate is 12 percent, and California's food stamp use is placed at 8 percent. While Fresno's poverty rate declined by a percentage point in 2011 to 25.8 percent — a statistically insignificant decrease — it ranked as the poorest metro area in the state for the second year in a row. Experts say the poverty problem in the nation's agricultural powerhouse is deeply ingrained. The most important barrier is the valley's lack of economic diversity. There are simply too few good non-agricultural jobs around and jobs in agriculture tend to be low-wage ones — except for those who run agribusinesses. "It's a pretty ag-heavy region, so the inequality of wages and the opportunity to earn better wages is really skewed," said Caroline Farrell, executive director of the Delano-based Center on Race, Poverty & the Environment. "If you own a farm, you're apt to earn more wealth, while if you're a farmworker, don't earn very much." The valley has not been able to bring or retain many new companies partly because it lacks a qualified workforce, said Atonio Avalos, associate professor of economics at Fresno State University. "We have an issue of skills mismatch," Avalos said. "Companies may be offering jobs, but the skills of people in the valley are not ones they are looking for." Students who want to get a college degree face many barriers, he said, and public funding for education is being slashed. Those who do graduate leave to find jobs elsewhere. The valley also doesn't offer attractive amenities and has serious problems such as air pollution that have gone unaddressed. "If you're a doctor or engineer, there are other places where you can make good money and live in better conditions," Avalos said. "Many people don't come here or leave because of the high incidence of asthma and other respiratory problems." Valley leaders, said Farrell of the Center on Race, Poverty & the Environment, need to decide whether to break the poverty cycle by investing more in schools, educating children of color and encouraging them to go to college. "There's a class and racial divide here," she said, "and we need to decide how we are going to change that."
URL to original article: http://www.thebusinessjournal.com/news/economy/3333-central-valley-cities-among-poorest-in-us
For further information on Fresno Real Estate check: http://www.londonproperties.com
Written by GOSIA WOZNIACKA,Associated Press
(AP) — Three metropolitan areas in California's Central Valley, the region with the highest farm revenues in the country, rank among the poorest in the state and nation, Census figures released Thursday show. Fresno, Modesto and Bakersfield-Delano areas are among the top five U.S. regions with the highest percentage of residents living below the poverty line. The Fresno area, ranked as the second most impoverished in the nation, trailed only the U.S.-Mexico border area of McAllen-Edinburg-Mission, Texas, the American Community Survey figures show. Bakersfield-Delano and Modesto ranked fourth and fifth. The data compared large metro areas in 2011 of half million people or more. The valley's poverty rate is high even though its agricultural productivity is soaring. California is home to a $35 billion agricultural industry and Fresno County produces more than $5.6 billion in agricultural products. One in four people in the county lived under the poverty line in 2011. In California, one in six residents lived in poverty. California's poverty rate went up slightly, from 15.8 to 16.6 percent. Median income fell from $59,540 in 2010 to $57,287 in 2011. In Fresno County, median income fell from $46,479 to $42,807. Unemployment in the county rose to 16 percent and food stamp use increased to nearly 18 percent. By comparison, the statewide unemployment rate is 12 percent, and California's food stamp use is placed at 8 percent. While Fresno's poverty rate declined by a percentage point in 2011 to 25.8 percent — a statistically insignificant decrease — it ranked as the poorest metro area in the state for the second year in a row. Experts say the poverty problem in the nation's agricultural powerhouse is deeply ingrained. The most important barrier is the valley's lack of economic diversity. There are simply too few good non-agricultural jobs around and jobs in agriculture tend to be low-wage ones — except for those who run agribusinesses. "It's a pretty ag-heavy region, so the inequality of wages and the opportunity to earn better wages is really skewed," said Caroline Farrell, executive director of the Delano-based Center on Race, Poverty & the Environment. "If you own a farm, you're apt to earn more wealth, while if you're a farmworker, don't earn very much." The valley has not been able to bring or retain many new companies partly because it lacks a qualified workforce, said Atonio Avalos, associate professor of economics at Fresno State University. "We have an issue of skills mismatch," Avalos said. "Companies may be offering jobs, but the skills of people in the valley are not ones they are looking for." Students who want to get a college degree face many barriers, he said, and public funding for education is being slashed. Those who do graduate leave to find jobs elsewhere. The valley also doesn't offer attractive amenities and has serious problems such as air pollution that have gone unaddressed. "If you're a doctor or engineer, there are other places where you can make good money and live in better conditions," Avalos said. "Many people don't come here or leave because of the high incidence of asthma and other respiratory problems." Valley leaders, said Farrell of the Center on Race, Poverty & the Environment, need to decide whether to break the poverty cycle by investing more in schools, educating children of color and encouraging them to go to college. "There's a class and racial divide here," she said, "and we need to decide how we are going to change that."
URL to original article: http://www.thebusinessjournal.com/news/economy/3333-central-valley-cities-among-poorest-in-us
For further information on Fresno Real Estate check: http://www.londonproperties.com
Existing home sales increase 9.3% in August
Source: Housingwire
By Justin T. Hilley
Existing home sales rose 9.3% to a seasonally adjusted annual rate of 4.82 million in August from the 4.41 million seen a year earlier, according to the National Association of Realtors. The figure is 7.8% above July’s 4.47 million. The national median home price rose on a year-over-year basis for the sixth straight month. The median price for all housing types totaled $187,400 in August, up 9.5% from a year ago. The last time there were six back-to-back monthly price increases from a year earlier was from December 2005 to May 2006. The August increase is the strongest since January 2006 when the median price rose 10.2% from a year earlier. Lawrence Yun , NAR chief economist, points to favorable buying conditions. "The housing market is steadily recovering with consistent increases in both home sales and median prices," Yun said. "More buyers are taking advantage of excellent housing affordability conditions. Inventories in many parts of the country are broadly balanced, favoring neither sellers nor buyers. However, the West and Florida markets are experiencing inventory shortages, which are placing pressure on prices." Distressed homes accounted for 22% of August sales — 12% were foreclosures and 10% were short sales — down from 24% in July and 31% in August 2011. Foreclosures sold for an average discount of 19% below market value in August, while short sales were discounted 13%, NAR says. Total housing inventory at the end August rose 2.9% to 2.47 million existing homes available for sale, which represents a 6.1-month supply at the current sales pace, down from a 6.4-month supply in July. Listed inventory is 18.2% below a year ago when there was an 8.2-month supply. The median time on market was 70 days in August, NAR found, consistent with 69 days in July but down 23.9% from 92 days in August 2011. Thirty-two percent of homes sold in August were on the market for less than a month, while 19% were on the market for six months or longer. NAR President Moe Veissi says some buyers are involuntarily sidelined. "Total sales this year will be 8% to 10% above 2011, but some buyers are frustrated with mortgage availability,” Veissi asserted. “If most of the financially qualified buyers could obtain financing, home sales would be about 10% to 15% stronger, and the related economic activity would create several hundred thousand jobs over the period of a year."
URL to original article: http://www.housingwire.com/news/existing-home-sales-increase-93-august
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Justin T. Hilley
Existing home sales rose 9.3% to a seasonally adjusted annual rate of 4.82 million in August from the 4.41 million seen a year earlier, according to the National Association of Realtors. The figure is 7.8% above July’s 4.47 million. The national median home price rose on a year-over-year basis for the sixth straight month. The median price for all housing types totaled $187,400 in August, up 9.5% from a year ago. The last time there were six back-to-back monthly price increases from a year earlier was from December 2005 to May 2006. The August increase is the strongest since January 2006 when the median price rose 10.2% from a year earlier. Lawrence Yun , NAR chief economist, points to favorable buying conditions. "The housing market is steadily recovering with consistent increases in both home sales and median prices," Yun said. "More buyers are taking advantage of excellent housing affordability conditions. Inventories in many parts of the country are broadly balanced, favoring neither sellers nor buyers. However, the West and Florida markets are experiencing inventory shortages, which are placing pressure on prices." Distressed homes accounted for 22% of August sales — 12% were foreclosures and 10% were short sales — down from 24% in July and 31% in August 2011. Foreclosures sold for an average discount of 19% below market value in August, while short sales were discounted 13%, NAR says. Total housing inventory at the end August rose 2.9% to 2.47 million existing homes available for sale, which represents a 6.1-month supply at the current sales pace, down from a 6.4-month supply in July. Listed inventory is 18.2% below a year ago when there was an 8.2-month supply. The median time on market was 70 days in August, NAR found, consistent with 69 days in July but down 23.9% from 92 days in August 2011. Thirty-two percent of homes sold in August were on the market for less than a month, while 19% were on the market for six months or longer. NAR President Moe Veissi says some buyers are involuntarily sidelined. "Total sales this year will be 8% to 10% above 2011, but some buyers are frustrated with mortgage availability,” Veissi asserted. “If most of the financially qualified buyers could obtain financing, home sales would be about 10% to 15% stronger, and the related economic activity would create several hundred thousand jobs over the period of a year."
URL to original article: http://www.housingwire.com/news/existing-home-sales-increase-93-august
For further information on Fresno Real Estate check: http://www.londonproperties.com
Mortgage rates return to record lows
Source: Housingwire
By Justin T. Hilley
The average 30-year fixed rate mortgage rate returned to record lows this week, while the 15-year set an all-time bottom, following the Federal Reserve’s announcement of a new bond purchase plan. The Freddie Mac survey showed the 30-year, FRM averaged 3.49% for the week ending Thursday, down from last week’s 3.55% and matching it’s all-time low set in July. Last year at this time, the 30-year FRM averaged 4.09%. The 15-year FRM, a popular refinancing choice, averaged 2.77%, falling from 2.85% last week and setting a record low. A year ago, the average rate for a 15-year FRM was 3.29%. Five-year, Treasury-indexed, hybrid adjustable-rate mortgages averaged 2.76%, up from 2.72% last week and falling from 3.02% a year earlier. One-year, Treasury-indexed ARMs averaged 2.61%, the same as last week and down from 2.82% last year. “Following the Federal Reserve’s announcement of a new bond purchase plan, yields on mortgage-backed securities fell bringing average fixed mortgage rates to their all-time record lows which should aid in the ongoing housing recovery,” Freddie Mac Chief Economist Frank Nothaft said. New construction on one-family homes rebounded in August, rising 5.5% to the fastest pace since April 2010. And existing home sales increased 7.8% in August to its strongest pace since May 2010. Home loan analytics firm Bankrate, which surveys large banks, reported that the 30-year FRM fell to 3.7% from 3.81%, while the 15-year FRM dropped to 2.95% from 3.04%. The 5/1 ARM slipped to 2.69% from 2.75% for the week.
URL to original article: http://www.housingwire.com/news/mortgage-rates-return-record-lows
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Justin T. Hilley
The average 30-year fixed rate mortgage rate returned to record lows this week, while the 15-year set an all-time bottom, following the Federal Reserve’s announcement of a new bond purchase plan. The Freddie Mac survey showed the 30-year, FRM averaged 3.49% for the week ending Thursday, down from last week’s 3.55% and matching it’s all-time low set in July. Last year at this time, the 30-year FRM averaged 4.09%. The 15-year FRM, a popular refinancing choice, averaged 2.77%, falling from 2.85% last week and setting a record low. A year ago, the average rate for a 15-year FRM was 3.29%. Five-year, Treasury-indexed, hybrid adjustable-rate mortgages averaged 2.76%, up from 2.72% last week and falling from 3.02% a year earlier. One-year, Treasury-indexed ARMs averaged 2.61%, the same as last week and down from 2.82% last year. “Following the Federal Reserve’s announcement of a new bond purchase plan, yields on mortgage-backed securities fell bringing average fixed mortgage rates to their all-time record lows which should aid in the ongoing housing recovery,” Freddie Mac Chief Economist Frank Nothaft said. New construction on one-family homes rebounded in August, rising 5.5% to the fastest pace since April 2010. And existing home sales increased 7.8% in August to its strongest pace since May 2010. Home loan analytics firm Bankrate, which surveys large banks, reported that the 30-year FRM fell to 3.7% from 3.81%, while the 15-year FRM dropped to 2.95% from 3.04%. The 5/1 ARM slipped to 2.69% from 2.75% for the week.
URL to original article: http://www.housingwire.com/news/mortgage-rates-return-record-lows
For further information on Fresno Real Estate check: http://www.londonproperties.com
Monday, September 17, 2012
FDIC reports housing market improvement in sand states
Source: Housingwire
By Kerri Ann Panchuk
The so-called 'sand states' of California, Florida, Arizona and Nevada led the nation into the 2008 housing meltdown. But the popular real estate destinations are coming back – albeit slowly – with home building permits on the rise in all four states. Data released by the Federal Deposit Insurance Corp. shows the four states struggling with high unemployment even as the local housing markets pick up speed. Single-family home building permits in Arizona, for example, jumped 62.1% year-over-year in the second quarter, the FDIC said in a new profile of the Southwest state. Multifamily building permits also rose 237% over year ago levels. The jumps come at a time when housing reports suggest investors and buyers are on the prowl in Arizona looking for solid residential deals. In addition, home prices in Arizona edged up a modest 2.7% annually in 2Q while unemployment dropped to 8.2% from 9.6% in 1Q. California still struggles with a high 10.8% unemployment rate, but single-family permits are growing steadily. In the second quarter, the state's home building permits jumped 9.8% from last year while multifamily permits increased 12.8%. Home prices in California declined 1.3% from a year earlier, but that drop is improved from a 2.2% fall experienced in the first quarter. Then, there is Florida – a state that has been attracting investors and cash buyers for months. Unemployment fell from 9.3% in the first quarter to 8.6% in 2Q. Meanwhile, single-family home building permits are up at least 27% from year ago levels, which is slightly slower than the 30.8% increase reported in 1Q. Multifamily building permits also are up 125.5% while the home price index is down a slight 1.8% from a year ago. Nevada, perhaps, is facing the slowest turnaround economically. Single-family home permits grew 65.1% year-over-year in the second quarter, while multifamily building permits fell 55.2% over last year. The home price index cited by the FDIC shows prices in the state down 2% over last year. The state's unemployment rate also fell slightly from 1Q, but still hangs just under 12%.
URL to original article: http://www.housingwire.com/news/sand-states-see-year-over-year-improvement-struggle-full-recovery
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Kerri Ann Panchuk
The so-called 'sand states' of California, Florida, Arizona and Nevada led the nation into the 2008 housing meltdown. But the popular real estate destinations are coming back – albeit slowly – with home building permits on the rise in all four states. Data released by the Federal Deposit Insurance Corp. shows the four states struggling with high unemployment even as the local housing markets pick up speed. Single-family home building permits in Arizona, for example, jumped 62.1% year-over-year in the second quarter, the FDIC said in a new profile of the Southwest state. Multifamily building permits also rose 237% over year ago levels. The jumps come at a time when housing reports suggest investors and buyers are on the prowl in Arizona looking for solid residential deals. In addition, home prices in Arizona edged up a modest 2.7% annually in 2Q while unemployment dropped to 8.2% from 9.6% in 1Q. California still struggles with a high 10.8% unemployment rate, but single-family permits are growing steadily. In the second quarter, the state's home building permits jumped 9.8% from last year while multifamily permits increased 12.8%. Home prices in California declined 1.3% from a year earlier, but that drop is improved from a 2.2% fall experienced in the first quarter. Then, there is Florida – a state that has been attracting investors and cash buyers for months. Unemployment fell from 9.3% in the first quarter to 8.6% in 2Q. Meanwhile, single-family home building permits are up at least 27% from year ago levels, which is slightly slower than the 30.8% increase reported in 1Q. Multifamily building permits also are up 125.5% while the home price index is down a slight 1.8% from a year ago. Nevada, perhaps, is facing the slowest turnaround economically. Single-family home permits grew 65.1% year-over-year in the second quarter, while multifamily building permits fell 55.2% over last year. The home price index cited by the FDIC shows prices in the state down 2% over last year. The state's unemployment rate also fell slightly from 1Q, but still hangs just under 12%.
URL to original article: http://www.housingwire.com/news/sand-states-see-year-over-year-improvement-struggle-full-recovery
For further information on Fresno Real Estate check: http://www.londonproperties.com
Fewer Americans underwater, but housing remains fragile: Obama Scorecard
Source: Housingwire
[[Update 1: Corrects ....share of underwater mortgages declined from 25.2% in 4Q of 2012 to 4Q of 2011]] The number of underwater borrowers is down from late 2011, but housing is far from on the mend, the Obama Administration said Thursday. In the administration's August Housing Scorecard, the report shows the number of upside-down borrowers falling 11% from late 2011 to the second-quarter of 2012. CoreLogic data incorporated into the Treasury department's scorecard puts today's underwater borrower population at roughly 10.8 million, compared to 12.1 million in the fourth quarter of last year. Overall, the share of underwater mortgages declined from 25.2% in 4Q of 2011 to 22.3% in the most recent housing scorecard. Home prices also managed to rise for three consecutive months based on reports from the major home price indices produced by Standard & Poor's, the Federal Housing Finance Agency and CoreLogic. The average home price in 2Q hit $142,200, up from $139,000 in 1Q and $141,500 last year, according to data cited from the S&P Case-Shiller home price indices. "With median sales prices the highest they’ve been since the earliest months of the administration, underwater borrowers down by 11% since the end of last year and more than half a million refinances through our enhanced Home Affordable Refinance Program so far this year, it is clear that we’re making progress," said HUD acting assistant secretary Erika Poethig. "But with so many households still struggling to make ends meet, we have important work ahead. That is why we are asking the Congress to approve the president’s refinancing proposal so that more homeowners can receive assistance." Home inventory levels also fell from year ago levels with the market now containing a 6.4-month supply of existing homes, down from 9.3-months a year earlier, according to National Association of Realtors data cited by the government. New and existing home sales also improved from last year, with 31,000 new homes sold in the most recent scorecard period, up from 24,800 a year earlier, HUD and the Census Bureau reported. Existing home sales also rose to 372,000 units in the most recent quarterly report, up from 337,500 units a year earlier, according to NAR data cited by the scorecard.
URL to original article: http://www.housingwire.com/news/fewer-americans-are-underwater-housing-remains-fragile-obama-scorecard-0
For further information on Fresno Real Estate check: http://www.londonproperties.com
[[Update 1: Corrects ....share of underwater mortgages declined from 25.2% in 4Q of 2012 to 4Q of 2011]] The number of underwater borrowers is down from late 2011, but housing is far from on the mend, the Obama Administration said Thursday. In the administration's August Housing Scorecard, the report shows the number of upside-down borrowers falling 11% from late 2011 to the second-quarter of 2012. CoreLogic data incorporated into the Treasury department's scorecard puts today's underwater borrower population at roughly 10.8 million, compared to 12.1 million in the fourth quarter of last year. Overall, the share of underwater mortgages declined from 25.2% in 4Q of 2011 to 22.3% in the most recent housing scorecard. Home prices also managed to rise for three consecutive months based on reports from the major home price indices produced by Standard & Poor's, the Federal Housing Finance Agency and CoreLogic. The average home price in 2Q hit $142,200, up from $139,000 in 1Q and $141,500 last year, according to data cited from the S&P Case-Shiller home price indices. "With median sales prices the highest they’ve been since the earliest months of the administration, underwater borrowers down by 11% since the end of last year and more than half a million refinances through our enhanced Home Affordable Refinance Program so far this year, it is clear that we’re making progress," said HUD acting assistant secretary Erika Poethig. "But with so many households still struggling to make ends meet, we have important work ahead. That is why we are asking the Congress to approve the president’s refinancing proposal so that more homeowners can receive assistance." Home inventory levels also fell from year ago levels with the market now containing a 6.4-month supply of existing homes, down from 9.3-months a year earlier, according to National Association of Realtors data cited by the government. New and existing home sales also improved from last year, with 31,000 new homes sold in the most recent scorecard period, up from 24,800 a year earlier, HUD and the Census Bureau reported. Existing home sales also rose to 372,000 units in the most recent quarterly report, up from 337,500 units a year earlier, according to NAR data cited by the scorecard.
URL to original article: http://www.housingwire.com/news/fewer-americans-are-underwater-housing-remains-fragile-obama-scorecard-0
For further information on Fresno Real Estate check: http://www.londonproperties.com
NAR calls for easier mortgage lending
Source: Housingwire
By Kerri Ann Panchuk
Regulators and lenders could spur the creation of 250,000 to 350,000 jobs by easing tight lending standards that are causing an overcorrection in the space, the National Association of Realtors said Monday. If there is one complaint NAR chief economist Lawrence Yun gets the most from Realtors, it's that the mortgage market is too tight with 53% of August loans going to borrowers with credit scores above 740, according to NAR survey data. From 2001 to 2004, only 41% of loans backed by Fannie Mae had FICO scores above 740. For Freddie Mac, that number held at 43% during the first four years of the decade. But today lenders are worried about regulations, NAR suggests. And these worries are making them overly conservative, pushing the market into overcorrection mode. The end result is a real estate market where job growth is suppressed as lenders only leak out loans to the most prime borrowers. "Sensible lending standards would permit 500,000 to 700,000 additional home sales in the coming year," Yun said. "The economic activity created through these additional home sales would add 250,000 to 350,000 jobs in related trades and services almost immediately, and without a cost impact." Realtors surveyed by NAR says lenders are taking too long when approving mortgage applications while also requiring excessive information from borrowers. The end result is a market where lenders are focusing only on borrowers with prime credit scores. "There is an unnecessarily high level of risk aversion among mortgage lenders and regulators, although many are sitting on large volumes of cash which could go a long way toward speeding our economic recovery," Yun said. "A loosening of the overly restrictive lending standards is very much in order." The average FICO score for borrowers denied mortgages this year hit 669 in May, NAR said. Yet, the Office of the Comptroller of the Currency still defines a prime loan as one with a FICO score of 660 and above – a measurement that is not reflected in who is getting a loan in today's lending environment.
URL to original article: http://www.housingwire.com/news/most-loans-going-borrowers-740-plus-credit-scores-realtors
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Kerri Ann Panchuk
Regulators and lenders could spur the creation of 250,000 to 350,000 jobs by easing tight lending standards that are causing an overcorrection in the space, the National Association of Realtors said Monday. If there is one complaint NAR chief economist Lawrence Yun gets the most from Realtors, it's that the mortgage market is too tight with 53% of August loans going to borrowers with credit scores above 740, according to NAR survey data. From 2001 to 2004, only 41% of loans backed by Fannie Mae had FICO scores above 740. For Freddie Mac, that number held at 43% during the first four years of the decade. But today lenders are worried about regulations, NAR suggests. And these worries are making them overly conservative, pushing the market into overcorrection mode. The end result is a real estate market where job growth is suppressed as lenders only leak out loans to the most prime borrowers. "Sensible lending standards would permit 500,000 to 700,000 additional home sales in the coming year," Yun said. "The economic activity created through these additional home sales would add 250,000 to 350,000 jobs in related trades and services almost immediately, and without a cost impact." Realtors surveyed by NAR says lenders are taking too long when approving mortgage applications while also requiring excessive information from borrowers. The end result is a market where lenders are focusing only on borrowers with prime credit scores. "There is an unnecessarily high level of risk aversion among mortgage lenders and regulators, although many are sitting on large volumes of cash which could go a long way toward speeding our economic recovery," Yun said. "A loosening of the overly restrictive lending standards is very much in order." The average FICO score for borrowers denied mortgages this year hit 669 in May, NAR said. Yet, the Office of the Comptroller of the Currency still defines a prime loan as one with a FICO score of 660 and above – a measurement that is not reflected in who is getting a loan in today's lending environment.
URL to original article: http://www.housingwire.com/news/most-loans-going-borrowers-740-plus-credit-scores-realtors
For further information on Fresno Real Estate check: http://www.londonproperties.com
Thursday, September 13, 2012
Housing Recovery at Risk
For Immediate Release
Contact: Eric McCormick (559) 304-4637;
eric@mccormickmobilemedia.com
C/O London Properties 6442 N. Maroa Ave. Fresno, Ca. 93704
Prior to 2007 and The Great Recession, many people had no idea what a “short sale” meant. Today, short sale is a term as familiar to most Americans as apple pie. It has become a common financial tool that allows homeowners to sell their home, maintain neighborhood property values and even recoup a little cash. All of that could change if the Federal Mortgage Debt Relief Act of 2007 is not extended. A short sale is a process that allows a homeowner to sell their home for less than what is owed to the lender. To secure the lenders agreement to accept such a loss, the home owner must usually show and inability to continue making payments due to a hardship such as loss of job, change in income, divorce or disability. If the home owner qualifies and the home is sold, the difference between the selling price and the amount owed on the loan is “the short” which is paid by the lender. Prior to the Mortgage Debt Relief Act of 2007, the short amount was considered taxable income for the seller. It was called “Relief of Indebtedness Income”. For example, if a homeowner short sells their home for $100,000 less than what is owed, the $100,000 was like a gift and was therefore considered income and would result in a tax bill. Home owners in a 30% tax bracket would, at the end of the year, receive a $30,000 tax bill from the IRS. Those bills generally arrived at a time where the home owner, having just lost their home, could least afford it. The Mortgage Debt Relief Act of 2007 spared homeowners this hefty federal tax bill if they received a principle modification or short sale of their home. On January 1, 2013 this Mortgage Debt Relief Act is set to expire, meaning the Indebtedness Relief and the accompanying tax bills will return. Home owners who closed the sale of their home after December 2012 would once again incur huge tax liabilities. These bills will certainly damper the home owner’s enthusiasm to sell and would cripple our modest housing recovery. Currently, one in every three homes in the Central Valley is a short sale. By not extending this law in the short term we could see a rush of short sales in the 4th quarter that would increase inventory and lower home prices. In the long term however, we would also expect to see a spike in foreclosures, which can lead to abandoned properties, crime and blight. Another surprise to the home owner may be the fact that not completing a short sale may not protect them from receiving the same tax bill. As an alternate to a short sale, many home owners simply elect to let their home fall into foreclosure. The problem is that a completed foreclosure brings the same extinguishment of debt and may be considered by the IRS as having received the same “gift” amount, thus adding insult to injury by creating the same $30,000 tax bill arriving after having lost the home. Most of the short sales we see at London Properties are families who bought at the peak of the housing market and have had a change of employment or loss of income because of the recession. They simply can no longer afford the payment. A short sale is a responsible decision by a homeowner that can help relieve them of debt and maybe even put a few dollars in their pocket. But time is quickly running out. In the Central Valley where many of our communities are in the Top 10 in the country for foreclosures, underwater home values, short sales and unemployment now is the time to act quickly to capture that “tax free” relief of debt. After heavy lobbying from The National Association of Realtors a Senate committee was able to pass an extension on August 2012, which will now move to the full Senate next month, however there is no assurance this bill will pass. We encourage you to contact your representatives in the Senate and House of Representatives and tell them to extend this law prior the election and not risk a 12th hour lame duck vote in the fall. If you have any questions as to your ability to qualify for short sale assistance, including tax relief provisions, you can contact the Short Sale Hotline at (559) 436-4070. Meanwhile, there’s still time to secure for free short sale loan relief. According to company President, Patrick Conner, London Properties has processed more successful short sales than any real estate firm in Central California.
Additional information is also available at www.londonproperties.com.
Contact: Eric McCormick (559) 304-4637;
eric@mccormickmobilemedia.com
C/O London Properties 6442 N. Maroa Ave. Fresno, Ca. 93704
Prior to 2007 and The Great Recession, many people had no idea what a “short sale” meant. Today, short sale is a term as familiar to most Americans as apple pie. It has become a common financial tool that allows homeowners to sell their home, maintain neighborhood property values and even recoup a little cash. All of that could change if the Federal Mortgage Debt Relief Act of 2007 is not extended. A short sale is a process that allows a homeowner to sell their home for less than what is owed to the lender. To secure the lenders agreement to accept such a loss, the home owner must usually show and inability to continue making payments due to a hardship such as loss of job, change in income, divorce or disability. If the home owner qualifies and the home is sold, the difference between the selling price and the amount owed on the loan is “the short” which is paid by the lender. Prior to the Mortgage Debt Relief Act of 2007, the short amount was considered taxable income for the seller. It was called “Relief of Indebtedness Income”. For example, if a homeowner short sells their home for $100,000 less than what is owed, the $100,000 was like a gift and was therefore considered income and would result in a tax bill. Home owners in a 30% tax bracket would, at the end of the year, receive a $30,000 tax bill from the IRS. Those bills generally arrived at a time where the home owner, having just lost their home, could least afford it. The Mortgage Debt Relief Act of 2007 spared homeowners this hefty federal tax bill if they received a principle modification or short sale of their home. On January 1, 2013 this Mortgage Debt Relief Act is set to expire, meaning the Indebtedness Relief and the accompanying tax bills will return. Home owners who closed the sale of their home after December 2012 would once again incur huge tax liabilities. These bills will certainly damper the home owner’s enthusiasm to sell and would cripple our modest housing recovery. Currently, one in every three homes in the Central Valley is a short sale. By not extending this law in the short term we could see a rush of short sales in the 4th quarter that would increase inventory and lower home prices. In the long term however, we would also expect to see a spike in foreclosures, which can lead to abandoned properties, crime and blight. Another surprise to the home owner may be the fact that not completing a short sale may not protect them from receiving the same tax bill. As an alternate to a short sale, many home owners simply elect to let their home fall into foreclosure. The problem is that a completed foreclosure brings the same extinguishment of debt and may be considered by the IRS as having received the same “gift” amount, thus adding insult to injury by creating the same $30,000 tax bill arriving after having lost the home. Most of the short sales we see at London Properties are families who bought at the peak of the housing market and have had a change of employment or loss of income because of the recession. They simply can no longer afford the payment. A short sale is a responsible decision by a homeowner that can help relieve them of debt and maybe even put a few dollars in their pocket. But time is quickly running out. In the Central Valley where many of our communities are in the Top 10 in the country for foreclosures, underwater home values, short sales and unemployment now is the time to act quickly to capture that “tax free” relief of debt. After heavy lobbying from The National Association of Realtors a Senate committee was able to pass an extension on August 2012, which will now move to the full Senate next month, however there is no assurance this bill will pass. We encourage you to contact your representatives in the Senate and House of Representatives and tell them to extend this law prior the election and not risk a 12th hour lame duck vote in the fall. If you have any questions as to your ability to qualify for short sale assistance, including tax relief provisions, you can contact the Short Sale Hotline at (559) 436-4070. Meanwhile, there’s still time to secure for free short sale loan relief. According to company President, Patrick Conner, London Properties has processed more successful short sales than any real estate firm in Central California.
Additional information is also available at www.londonproperties.com.
Wednesday, September 12, 2012
Foreclosures fall in August
Source: The Business Journal
Foreclosure activity dropped throughout California in August, according to new date from Foreclosure Radar. Notices of default in the state were down 23.60 percent compared to last month and 49.06 percent from a year ago while notices of sale dropped 9.8 percent in 36.87 percent respectively. Of the 20,930 foreclosure filings in the month, a little over half were cancelled, 28 percent went back to the bank and 18 percent were sold to a third party. In Fresno County, there were 516 notices of default filed in August, down 15.27 percent from the prior month and down 44.81 percent from a year ago. Notices of sale, which serve as the homeowner's final warning before their home goes to auction, dropped 7.34 percent in the month and 22.43 percent over the year to a total of 467 in August. In Tulare County, 207 notices of default were issues in August, down 24.18 percent from July and 46.65 percent from last year. Notices of sale totaled 245 in the month, up 6.99 percent from the prior month but down 7.55 percent from last year. Madera County saw 37 notices of default filed in August, which is down 71.32 percent from the prior month and 79.78 percent from a year ago. Notices of sale dropped 71.43 percent in the month and 81.43 percent over last year to a total of 26 in August. In Kings County, there were 96 notices of default filed in August, down 42.86 percent from the month before and 39.62 percent from a year ago. Notices of sale totaled 92 in the month, down 32.35 percent from July but up 3.37 percent compared to last year.
URL to original article: http://www.thebusinessjournal.com/news/real-estate/3230-foreclosures-fall-in-august
For further information on Fresno Real Estate check: http://www.londonproperties.com
Foreclosure activity dropped throughout California in August, according to new date from Foreclosure Radar. Notices of default in the state were down 23.60 percent compared to last month and 49.06 percent from a year ago while notices of sale dropped 9.8 percent in 36.87 percent respectively. Of the 20,930 foreclosure filings in the month, a little over half were cancelled, 28 percent went back to the bank and 18 percent were sold to a third party. In Fresno County, there were 516 notices of default filed in August, down 15.27 percent from the prior month and down 44.81 percent from a year ago. Notices of sale, which serve as the homeowner's final warning before their home goes to auction, dropped 7.34 percent in the month and 22.43 percent over the year to a total of 467 in August. In Tulare County, 207 notices of default were issues in August, down 24.18 percent from July and 46.65 percent from last year. Notices of sale totaled 245 in the month, up 6.99 percent from the prior month but down 7.55 percent from last year. Madera County saw 37 notices of default filed in August, which is down 71.32 percent from the prior month and 79.78 percent from a year ago. Notices of sale dropped 71.43 percent in the month and 81.43 percent over last year to a total of 26 in August. In Kings County, there were 96 notices of default filed in August, down 42.86 percent from the month before and 39.62 percent from a year ago. Notices of sale totaled 92 in the month, down 32.35 percent from July but up 3.37 percent compared to last year.
URL to original article: http://www.thebusinessjournal.com/news/real-estate/3230-foreclosures-fall-in-august
For further information on Fresno Real Estate check: http://www.londonproperties.com
Agents note uptick in office activity
Source: The Business Journal
Written by Chuck Harvey
After a sluggish summer, office market sales and leases have picked up slightly as corporate buyers — mostly from outside the area — take advantage of low pricing and rock-bottom interest rates. “There’s been a little surge of activity on the corporate side,” said Craig “Cap” Capriotti, vice president of the office division, commercial real estate, for Fortune & Associates in Fresno. “They are looking for deals and paying cash.” Scott Buchanan, vice president of the Central California Office Properties Group for Colliers International in Fresno, agreed. “We’ve been busier than we’ve been in a while,” Buchanan said. “Activity seems to be getting a little stronger.” Still, major office building purchases have been few and far between, Buchanan said. Buyers are seeking office buildings in the 5,000 square-foot to 10,000 square-foot range. “They take advantage of low interest rates that are very available below 5 percent,” Capriotti said. However, the market has been somewhat limited by pricing, he said. “There is still a gap between the seller’s pricing and what buyers are willing to pay,” Capriotti said. Most of the sales and lease activity has been in north Fresno and Clovis, especially in Palm Bluffs, along Palm Bluffs Avenue and around Woodward Park and N. Fresno Street and Nees Avenue. (For the Valley’s largest office complexes, see our top-20 list on page 10). One prime location example, listed by Fortune & Associates, is class A office space for lease at 7111 N. Fresno St. in the Woodward Park market sector. Class A means that the office building was constructed using steel framing. The offices for lease range from 1,860 square feet to 8,199 square feet. Lease rate is $2.30 per square foot per month. West Shaw Avenue has also seen some office demand, Capriotti said. East Shaw Avenue has remained slow in terms of office sales and leases. However, Starpoint Towers at 1314 E. Shaw Ave. has been remodeled and is starting to generate interest, Buchanan said. Colliers International has the 6,021 square-foot Starpoint Towers office building listed for sale for an undisclosed price. It was originally built in 1970. CB Richard Ellis listed an office building for sale at 3434 W. Shaw Ave. in the Home Depot shopping area, just north of Valentine Avenue. The 4,245 square-foot building is priced at $636,000 or $149.59 per square foot. The brick building is described as ideal for an insurance, law, real estate, financial institution or accounting office. Meanwhile, opportunities exist in downtown Fresno, including the Rowell Building where Grubb & Ellis Pearson Commercial have listed the large office structure up for sale or lease. Various brokers have listed the Rowell Building for sale for the past five to six years. Its size and need for refurbishing have been limiting factors so far, brokers report. “It needs a lot of work,” said Tony Cortopassi, associate and office specialist for CB Richard Ellis in Fresno. Located at Tulare Street and Van Ness Avenue, the 60,000 square foot building built in 1916 can be purchased for $2.25 million or $37.50 a square foot. It has 49,475 square feet of office space that can be leased for $15 per square foot per year. Because of its close proximity to city, state and federal courthouses, it is advertised as ideal for law firms and practicing attorneys. Also downtown, CalWest Commercial Inc. in Fresno has listed for sale a three-story 21,060 square-foot office building at 2000 Fresno St., west of Van Ness Avenue. Built in 1983, the building is priced at $1.89 million or $90 per square foot. Although downtown remains viable, especially for attorney and government offices, most of the interest has been in newer buildings, Capriotti said. However, it is important to absorb existing buildings before building new ones, he said. He added that once the county and state government comes back from restrictive economic conditions, than the downtown office market would be OK. For now, much of the office activity has been on the north side of Fresno where doctors and surgeons need offices near hospitals, Capriotti said. He said the need for office space exists around major hospitals including Fresno Surgical Hospital at 6143 North Fresno St., Saint Agnes Medical Center at 1303 E. Herndon Ave., Clovis Community Medical Center at 2755 Herndon Ave., Fresno Heart & Surgical Hospital at 15 E. Audubon Drive and Community Regional Medical Center in downtown Fresno. Capriotti said he has seen a surge in purchases of medical office space, especially around hospitals with the newest technology. Doctors and surgeons generally seek offices ranging from 1,800 square feet to 2,200 square feet, Capriotti said. Attorneys have also sought out office space in north Fresno, including McCormick Barstow Attorneys at Law, which plans to move from 5 River Park Place East in Fresno to the northwest corner of El Paso and Fresno streets. McCormick Barstow broke ground in June for a 68,000 square-foot three-story office building that will house 105 attorneys. Once the structure is completed, McCormick Barstow will lease the building from Zinkin Development. Completion is expected the late fall of 2013. Although much of the office activity is in north Fresno near the 41 freeway, some office investors are looking more toward northwest Fresno and close proximity to State Route 99. One office complex of interest is The Grove Fig Garden on the Fig Garden Loop near Figarden Drive and Brawley Avenue. CB Richard Ellis put the bank-foreclosed office property, which includes three 8,868 square-foot buildings on 5.04 acres, up for sale. Initial asking price was $4.12 million for the entire project. Pads and buildings were also put up for sale individually.
URL to original article: http://www.thebusinessjournal.com/news/real-estate/3240-agents-note-uptick-in-office-activity
For further information on Fresno Real Estate check: http://www.londonproperties.com
Written by Chuck Harvey
After a sluggish summer, office market sales and leases have picked up slightly as corporate buyers — mostly from outside the area — take advantage of low pricing and rock-bottom interest rates. “There’s been a little surge of activity on the corporate side,” said Craig “Cap” Capriotti, vice president of the office division, commercial real estate, for Fortune & Associates in Fresno. “They are looking for deals and paying cash.” Scott Buchanan, vice president of the Central California Office Properties Group for Colliers International in Fresno, agreed. “We’ve been busier than we’ve been in a while,” Buchanan said. “Activity seems to be getting a little stronger.” Still, major office building purchases have been few and far between, Buchanan said. Buyers are seeking office buildings in the 5,000 square-foot to 10,000 square-foot range. “They take advantage of low interest rates that are very available below 5 percent,” Capriotti said. However, the market has been somewhat limited by pricing, he said. “There is still a gap between the seller’s pricing and what buyers are willing to pay,” Capriotti said. Most of the sales and lease activity has been in north Fresno and Clovis, especially in Palm Bluffs, along Palm Bluffs Avenue and around Woodward Park and N. Fresno Street and Nees Avenue. (For the Valley’s largest office complexes, see our top-20 list on page 10). One prime location example, listed by Fortune & Associates, is class A office space for lease at 7111 N. Fresno St. in the Woodward Park market sector. Class A means that the office building was constructed using steel framing. The offices for lease range from 1,860 square feet to 8,199 square feet. Lease rate is $2.30 per square foot per month. West Shaw Avenue has also seen some office demand, Capriotti said. East Shaw Avenue has remained slow in terms of office sales and leases. However, Starpoint Towers at 1314 E. Shaw Ave. has been remodeled and is starting to generate interest, Buchanan said. Colliers International has the 6,021 square-foot Starpoint Towers office building listed for sale for an undisclosed price. It was originally built in 1970. CB Richard Ellis listed an office building for sale at 3434 W. Shaw Ave. in the Home Depot shopping area, just north of Valentine Avenue. The 4,245 square-foot building is priced at $636,000 or $149.59 per square foot. The brick building is described as ideal for an insurance, law, real estate, financial institution or accounting office. Meanwhile, opportunities exist in downtown Fresno, including the Rowell Building where Grubb & Ellis Pearson Commercial have listed the large office structure up for sale or lease. Various brokers have listed the Rowell Building for sale for the past five to six years. Its size and need for refurbishing have been limiting factors so far, brokers report. “It needs a lot of work,” said Tony Cortopassi, associate and office specialist for CB Richard Ellis in Fresno. Located at Tulare Street and Van Ness Avenue, the 60,000 square foot building built in 1916 can be purchased for $2.25 million or $37.50 a square foot. It has 49,475 square feet of office space that can be leased for $15 per square foot per year. Because of its close proximity to city, state and federal courthouses, it is advertised as ideal for law firms and practicing attorneys. Also downtown, CalWest Commercial Inc. in Fresno has listed for sale a three-story 21,060 square-foot office building at 2000 Fresno St., west of Van Ness Avenue. Built in 1983, the building is priced at $1.89 million or $90 per square foot. Although downtown remains viable, especially for attorney and government offices, most of the interest has been in newer buildings, Capriotti said. However, it is important to absorb existing buildings before building new ones, he said. He added that once the county and state government comes back from restrictive economic conditions, than the downtown office market would be OK. For now, much of the office activity has been on the north side of Fresno where doctors and surgeons need offices near hospitals, Capriotti said. He said the need for office space exists around major hospitals including Fresno Surgical Hospital at 6143 North Fresno St., Saint Agnes Medical Center at 1303 E. Herndon Ave., Clovis Community Medical Center at 2755 Herndon Ave., Fresno Heart & Surgical Hospital at 15 E. Audubon Drive and Community Regional Medical Center in downtown Fresno. Capriotti said he has seen a surge in purchases of medical office space, especially around hospitals with the newest technology. Doctors and surgeons generally seek offices ranging from 1,800 square feet to 2,200 square feet, Capriotti said. Attorneys have also sought out office space in north Fresno, including McCormick Barstow Attorneys at Law, which plans to move from 5 River Park Place East in Fresno to the northwest corner of El Paso and Fresno streets. McCormick Barstow broke ground in June for a 68,000 square-foot three-story office building that will house 105 attorneys. Once the structure is completed, McCormick Barstow will lease the building from Zinkin Development. Completion is expected the late fall of 2013. Although much of the office activity is in north Fresno near the 41 freeway, some office investors are looking more toward northwest Fresno and close proximity to State Route 99. One office complex of interest is The Grove Fig Garden on the Fig Garden Loop near Figarden Drive and Brawley Avenue. CB Richard Ellis put the bank-foreclosed office property, which includes three 8,868 square-foot buildings on 5.04 acres, up for sale. Initial asking price was $4.12 million for the entire project. Pads and buildings were also put up for sale individually.
URL to original article: http://www.thebusinessjournal.com/news/real-estate/3240-agents-note-uptick-in-office-activity
For further information on Fresno Real Estate check: http://www.londonproperties.com
Monday, September 10, 2012
Mortgage debt relief may bring new pain: a tax bill
Source: The Fresno Bee
A special exemption on principal reduction and other aid from banks, in place since 2007, is set to expire at year's end. Some lawmakers are seeking an extension.
September 07, 2012|By Jim Puzzanghera, Los Angeles Times WASHINGTON — Struggling homeowners who obtain reductions in their mortgage debt face a new obstacle starting next year — a bill for taxes on that aid. A special exemption of as much as $2 million per household in principal reduction and other aid from banks, in place since 2007, is set to expire at year's end. It is one of a number of similarly expiring tax provisions — most notably the President George W. Bush-era tax cuts — and the large automatic government spending reductions looming at the same time that are referred to as the fiscal cliff. Housing advocates and lawmakers are worried that the exemption will disappear just as thousands of homeowners are receiving large amounts of mortgage debt relief from the nation's five largest banks as part of a national settlement of foreclosure abuse investigations. "The expiration of that provision is a hidden time bomb," said Rep. Jim McDermott (D-Wash.). He and other lawmakers are expected to push for an extension of the special tax exemption when Congress returns from summer recess next week, but even with bipartisan support it's unlikely to get a vote before the November election. And all bets are off on any legislation getting enacted in a turbulent post-election session later this year in which lawmakers must grapple with the divisive fiscal cliff issues. As the clock ticks on the mortgage debt exemption, concern is rising. "We are actively looking for opportunities to extend the provision, and we would hope we could do that well before the end of the calendar year," Housing and Urban Development Secretary Shaun Donovan said. Mortgage debt that is forgiven by a bank as part of a principal reduction, short sale or foreclosure must be reported as income by the homeowner and is subject to taxes. The lender reports the amount forgiven on a special Internal Revenue Service form. But in 2007, Congress enacted the Mortgage Forgiveness Debt Relief Act to give struggling homeowners a break. If the debt is forgiven because of a drop in a home's value or a decline in the owner's financial condition, up to $2 million of the relief for couples filing jointly is exempted from federal taxes. The exemption on what has been called shadow income — relief that can amount to tens or hundreds of thousands of dollars — originally was supposed to expire at the end of 2010. But with the housing market and economy in free fall in 2008, Congress extended the break until the end of the 2012 tax year. While the housing market recently has shown signs of turning the corner, housing advocates said the exemption is still needed. It's particularly important because the nation's five largest banks — Bank of America Corp., JPMorgan Chase & Co., Wells Fargo & Co., Citigroup Inc. and Ally Financial Inc. — have begun providing principal reductions and other relief as part of a $25-billion settlement of foreclosure abuse allegations with federal and state officials. The government monitor of the settlement reported last week that the banks had provided a total of about $10.6 billion in aid from March 1 through June 30. Nearly 140,000 homeowners received some type of relief under the settlement, averaging about $76,615 each. A middle-class household would owe 25% taxes on that relief — about $19,000 for the average settlement relief so far. The tax would go up if the relief pushes the homeowner into a higher tax bracket or if the Bush tax cuts expire, as they are set to do at year's end. "Principal reductions are coming, and we're glad for that, but they're less meaningful if there are tax consequences to them," said Kevin Stein, associate director of the California Reinvestment Coalition, a housing advocacy group. Principal reductions received this year still will be eligible for the exemption when homeowners file their 2012 taxes next spring. But much of the aid from the three-year settlement, which became final in April, will come after this year. "Extending this tax relief is critically important," said Lynda Gledhill, a spokeswoman for California Atty. Gen. Kamala Harris. Harris was a key player in the national mortgage settlement. "It is difficult to imagine strapped homeowners able to take advantage of these and other market-restoring programs if they have to pay federal income tax on the principal reduction or short sale as 'income,' " Gledhill said. A bill by Sen. Debbie Stabenow (D-Mich.) to extend the mortgage relief tax break through 2014 has 17 co-sponsors — 11 Democrats, four Republicans and two independents. A one-year extension of the mortgage debt break was included in a broader tax bill that includes extensions of other expiring provisions. That bill passed the Senate Finance Committee last month in a 19-5 vote. "There seems to be bipartisan concern about the issue," Donovan said. The one-year extension of the mortgage debt relief exemption would cost $1.3 billion over the next decade, according to a congressional estimate. McDermott's bill, which would extend the break through 2015, has 42 co-sponsors, all Democrats. But he was optimistic that Congress would act by the end of the year as more people realize the exemption is expiring. "Suddenly, just when they throw you a life ring, they jerk it back," he said of the tax hit awaiting homeowners who received the benefits. "We cannot let this happen. It's going to be a disaster."
A special exemption on principal reduction and other aid from banks, in place since 2007, is set to expire at year's end. Some lawmakers are seeking an extension.
September 07, 2012|By Jim Puzzanghera, Los Angeles Times WASHINGTON — Struggling homeowners who obtain reductions in their mortgage debt face a new obstacle starting next year — a bill for taxes on that aid. A special exemption of as much as $2 million per household in principal reduction and other aid from banks, in place since 2007, is set to expire at year's end. It is one of a number of similarly expiring tax provisions — most notably the President George W. Bush-era tax cuts — and the large automatic government spending reductions looming at the same time that are referred to as the fiscal cliff. Housing advocates and lawmakers are worried that the exemption will disappear just as thousands of homeowners are receiving large amounts of mortgage debt relief from the nation's five largest banks as part of a national settlement of foreclosure abuse investigations. "The expiration of that provision is a hidden time bomb," said Rep. Jim McDermott (D-Wash.). He and other lawmakers are expected to push for an extension of the special tax exemption when Congress returns from summer recess next week, but even with bipartisan support it's unlikely to get a vote before the November election. And all bets are off on any legislation getting enacted in a turbulent post-election session later this year in which lawmakers must grapple with the divisive fiscal cliff issues. As the clock ticks on the mortgage debt exemption, concern is rising. "We are actively looking for opportunities to extend the provision, and we would hope we could do that well before the end of the calendar year," Housing and Urban Development Secretary Shaun Donovan said. Mortgage debt that is forgiven by a bank as part of a principal reduction, short sale or foreclosure must be reported as income by the homeowner and is subject to taxes. The lender reports the amount forgiven on a special Internal Revenue Service form. But in 2007, Congress enacted the Mortgage Forgiveness Debt Relief Act to give struggling homeowners a break. If the debt is forgiven because of a drop in a home's value or a decline in the owner's financial condition, up to $2 million of the relief for couples filing jointly is exempted from federal taxes. The exemption on what has been called shadow income — relief that can amount to tens or hundreds of thousands of dollars — originally was supposed to expire at the end of 2010. But with the housing market and economy in free fall in 2008, Congress extended the break until the end of the 2012 tax year. While the housing market recently has shown signs of turning the corner, housing advocates said the exemption is still needed. It's particularly important because the nation's five largest banks — Bank of America Corp., JPMorgan Chase & Co., Wells Fargo & Co., Citigroup Inc. and Ally Financial Inc. — have begun providing principal reductions and other relief as part of a $25-billion settlement of foreclosure abuse allegations with federal and state officials. The government monitor of the settlement reported last week that the banks had provided a total of about $10.6 billion in aid from March 1 through June 30. Nearly 140,000 homeowners received some type of relief under the settlement, averaging about $76,615 each. A middle-class household would owe 25% taxes on that relief — about $19,000 for the average settlement relief so far. The tax would go up if the relief pushes the homeowner into a higher tax bracket or if the Bush tax cuts expire, as they are set to do at year's end. "Principal reductions are coming, and we're glad for that, but they're less meaningful if there are tax consequences to them," said Kevin Stein, associate director of the California Reinvestment Coalition, a housing advocacy group. Principal reductions received this year still will be eligible for the exemption when homeowners file their 2012 taxes next spring. But much of the aid from the three-year settlement, which became final in April, will come after this year. "Extending this tax relief is critically important," said Lynda Gledhill, a spokeswoman for California Atty. Gen. Kamala Harris. Harris was a key player in the national mortgage settlement. "It is difficult to imagine strapped homeowners able to take advantage of these and other market-restoring programs if they have to pay federal income tax on the principal reduction or short sale as 'income,' " Gledhill said. A bill by Sen. Debbie Stabenow (D-Mich.) to extend the mortgage relief tax break through 2014 has 17 co-sponsors — 11 Democrats, four Republicans and two independents. A one-year extension of the mortgage debt break was included in a broader tax bill that includes extensions of other expiring provisions. That bill passed the Senate Finance Committee last month in a 19-5 vote. "There seems to be bipartisan concern about the issue," Donovan said. The one-year extension of the mortgage debt relief exemption would cost $1.3 billion over the next decade, according to a congressional estimate. McDermott's bill, which would extend the break through 2015, has 42 co-sponsors, all Democrats. But he was optimistic that Congress would act by the end of the year as more people realize the exemption is expiring. "Suddenly, just when they throw you a life ring, they jerk it back," he said of the tax hit awaiting homeowners who received the benefits. "We cannot let this happen. It's going to be a disaster."
Friday, September 7, 2012
Democrats (Almost) Silent on Housing at the Convention
Source: Housingwire
By Karen Weise
Education, health care, small business, new private-sector jobs—those economic themes were hit on over and over again at the Democratic convention Tuesday night. So far, though, there’s been silence about a huge piece of the economy: housing. It’s a tricky political card for the Democrats to play. On one hand, the housing market is finally starting to show signs of improvement. On the other, foreclosures still haunt the country, including in some key swing states such as Nevada, Florida, and Ohio. And Obama’s key anti-foreclosure effort, the Home Affordable Modification Program, has made a much smaller impact than originally promised. As I wrote last week, it will boost loan modifications by only about 0.7 percent and reduce foreclosures by at most 0.48 percent, according to a recent academic study. Outside of foreclosures, rents are up around the country as inventory is falling behind demand. Here in Charlotte, a consortium of 19 real estate industry trade groups met with legislators Wednesday afternoon to press the importance of the market. (They held a parallel meeting with Republicans in Tampa.) The groups talked about what they saw as the hurdles to recovery—weak capital markets, lagging consumer confidence, and regulatory uncertainty among them. Steve Brown, first vice president of the National Association of Realtors, told legislators that the association fears tax changes that would cut back or eliminate the mortgage interest deduction, which NAR estimates could trim home values by 15 percent. Alexandra Jackiw, from the National Apartment Association, told me she doesn’t expect housing will get much attention on the convention stage, which doesn’t make sense to her. “We are a $2 trillion industry, just in multifamily alone,” she says. On Wednesday night two big speakers were particularly well-suited to bring up housing and foreclosures. Kamala Harris, the attorney general of California, has led anti-foreclosure efforts in her hard-hit state. She pushed though a Homeowners Bill of Rights and fought to get stronger pro-consumer measures in the $25 billion robo-signing settlement with mortgage servicers. Her speech provided the most direct discussion of the housing crisis so far in the convention. ”We’ve all seen what happens when you roll back all those rules,” referring to financial regulation. “What happens are rows of foreclosure signs.” Harris didn’t bring up loan modifications at all, though the biggest applause line was for the robo-signing settlement–she said Obama “stood with me and 48 other attorney generals” who secured the agreement. Then there’s Elizabeth Warren, who had a prime time speaking spot. She’s an academic expert on consumer debt. But, awkwardly, she was a harsh critic of the Obama administration’s anti-foreclosure programs. Her prepared remarks say Obama has taken on Wall Street–but hardly mentioned foreclosures and housing at all.
URL to original article: http://www.housingwire.com/content/democrats-mum-housing-convention
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Karen Weise
Education, health care, small business, new private-sector jobs—those economic themes were hit on over and over again at the Democratic convention Tuesday night. So far, though, there’s been silence about a huge piece of the economy: housing. It’s a tricky political card for the Democrats to play. On one hand, the housing market is finally starting to show signs of improvement. On the other, foreclosures still haunt the country, including in some key swing states such as Nevada, Florida, and Ohio. And Obama’s key anti-foreclosure effort, the Home Affordable Modification Program, has made a much smaller impact than originally promised. As I wrote last week, it will boost loan modifications by only about 0.7 percent and reduce foreclosures by at most 0.48 percent, according to a recent academic study. Outside of foreclosures, rents are up around the country as inventory is falling behind demand. Here in Charlotte, a consortium of 19 real estate industry trade groups met with legislators Wednesday afternoon to press the importance of the market. (They held a parallel meeting with Republicans in Tampa.) The groups talked about what they saw as the hurdles to recovery—weak capital markets, lagging consumer confidence, and regulatory uncertainty among them. Steve Brown, first vice president of the National Association of Realtors, told legislators that the association fears tax changes that would cut back or eliminate the mortgage interest deduction, which NAR estimates could trim home values by 15 percent. Alexandra Jackiw, from the National Apartment Association, told me she doesn’t expect housing will get much attention on the convention stage, which doesn’t make sense to her. “We are a $2 trillion industry, just in multifamily alone,” she says. On Wednesday night two big speakers were particularly well-suited to bring up housing and foreclosures. Kamala Harris, the attorney general of California, has led anti-foreclosure efforts in her hard-hit state. She pushed though a Homeowners Bill of Rights and fought to get stronger pro-consumer measures in the $25 billion robo-signing settlement with mortgage servicers. Her speech provided the most direct discussion of the housing crisis so far in the convention. ”We’ve all seen what happens when you roll back all those rules,” referring to financial regulation. “What happens are rows of foreclosure signs.” Harris didn’t bring up loan modifications at all, though the biggest applause line was for the robo-signing settlement–she said Obama “stood with me and 48 other attorney generals” who secured the agreement. Then there’s Elizabeth Warren, who had a prime time speaking spot. She’s an academic expert on consumer debt. But, awkwardly, she was a harsh critic of the Obama administration’s anti-foreclosure programs. Her prepared remarks say Obama has taken on Wall Street–but hardly mentioned foreclosures and housing at all.
URL to original article: http://www.housingwire.com/content/democrats-mum-housing-convention
For further information on Fresno Real Estate check: http://www.londonproperties.com
Thursday, September 6, 2012
Mortgage rates hold steady near record lows
Source: Housingwire
By Justin T. Hilley
Fixed mortgage rates declined or remained the same throughout the Labor Day week, continuing to hover around all-time record lows amid mixed economic data. The Freddie Mac survey showed the 30-year FRM averaged 3.55% for the week ending Thursday, down from last week’s 3.59%%. Last year at this time, the 30-year FRM averaged 4.12%. The 30-year FRM stands only six basis points above the record low average hit in July. The 15-year FRM, a popular refinancing choice, averaged 2.86%, unchanged from last week. A year ago, the average rate for a 15-year FRM was 3.33%. Five-year, Treasury-indexed, hybrid adjustable-rate mortgages averaged 2.75%, down from 2.78% last week and falling from 2.96% a year earlier. One-year, Treasury-indexed ARMs averaged 2.61%, down from last week’s 2.63% and down from 2.84% last year. A mixture of economic arrived in the past week. Although consumer spending rose 0.4% in July, representing the largest gain in five months, the core price index did not change, suggesting little threat of inflation, Freddie Mac Chief Economist Frank Nothaft noted. Consumer confidence picked up slightly in August according to the University of Michigan, but remained below this year’s peak in May. And the manufacturing industry contracted for the third consecutive month in August. Home loan analytics firm Bankrate, which surveys large banks, reported the 30-year FRM slipped to 3.79% from 3.8%, while the 15-year FRM rose to 3.04% from 3.03%. The 5/1 ARM shrunk to 2.76% from 2.8% for the week.
URL to original article: http://www.housingwire.com/news/mortgage-rates-hold-steady-near-record-lows-0
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Justin T. Hilley
Fixed mortgage rates declined or remained the same throughout the Labor Day week, continuing to hover around all-time record lows amid mixed economic data. The Freddie Mac survey showed the 30-year FRM averaged 3.55% for the week ending Thursday, down from last week’s 3.59%%. Last year at this time, the 30-year FRM averaged 4.12%. The 30-year FRM stands only six basis points above the record low average hit in July. The 15-year FRM, a popular refinancing choice, averaged 2.86%, unchanged from last week. A year ago, the average rate for a 15-year FRM was 3.33%. Five-year, Treasury-indexed, hybrid adjustable-rate mortgages averaged 2.75%, down from 2.78% last week and falling from 2.96% a year earlier. One-year, Treasury-indexed ARMs averaged 2.61%, down from last week’s 2.63% and down from 2.84% last year. A mixture of economic arrived in the past week. Although consumer spending rose 0.4% in July, representing the largest gain in five months, the core price index did not change, suggesting little threat of inflation, Freddie Mac Chief Economist Frank Nothaft noted. Consumer confidence picked up slightly in August according to the University of Michigan, but remained below this year’s peak in May. And the manufacturing industry contracted for the third consecutive month in August. Home loan analytics firm Bankrate, which surveys large banks, reported the 30-year FRM slipped to 3.79% from 3.8%, while the 15-year FRM rose to 3.04% from 3.03%. The 5/1 ARM shrunk to 2.76% from 2.8% for the week.
URL to original article: http://www.housingwire.com/news/mortgage-rates-hold-steady-near-record-lows-0
For further information on Fresno Real Estate check: http://www.londonproperties.com
Unemployment claims fall by 12,000
Source: Housingwire
The number of unemployment claims filed for the week ending Sept. 1 fell by 12,000, the Labor Department said Thursday. Meanwhile, the amount of jobless applications submitted by Americans fell to 365,000, compared to 371,250 a week prior. The four-week moving average on jobless claims for the period hit 371,250, an increase of 250 from the previous week's revised average of 371,000. As of Aug. 18, roughly 5.5 million Americans are claiming jobless benefits, down from 63,076 a week earlier.
URL to original article: http://www.housingwire.com/content/unemployment-claims-fall-12000
For further information on Fresno Real Estate check: http://www.londonproperties.com
The number of unemployment claims filed for the week ending Sept. 1 fell by 12,000, the Labor Department said Thursday. Meanwhile, the amount of jobless applications submitted by Americans fell to 365,000, compared to 371,250 a week prior. The four-week moving average on jobless claims for the period hit 371,250, an increase of 250 from the previous week's revised average of 371,000. As of Aug. 18, roughly 5.5 million Americans are claiming jobless benefits, down from 63,076 a week earlier.
URL to original article: http://www.housingwire.com/content/unemployment-claims-fall-12000
For further information on Fresno Real Estate check: http://www.londonproperties.com
Wednesday, September 5, 2012
Houses selling faster: NAR
Source: Housingwire
By Justin T. Hilley
The amount of time it takes to sell a home is shrinking, according to a new measure by the National Association of Realtors. For traditional sellers, it’s in the range of historic norms, below the peak levels attained in 2009. The median time a home was listed for sale was 69 days in July, down 29.6% from 98 days a year earlier. The median reflects a wide spectrum, with one-third of homes purchased in July sitting on the market for less than a month, while one in five for at least six months. NAR notes the figures can be misleading at times because any recent flux of new listings can skew the numbers downward. NAR’s new measure reveals a longer selling time than historic findings, which measured only nondistressed homes so comparing the new numbers to past years isn't a true comparison. NAR now figures in short sales, which generally take three months or longer to sell. Factoring out short sales, the median time on market for traditional sellers is about six to seven weeks, NAR said. That compares to 10 weeks in 2009, considered the peak list time for nondistressed buyers since the economic downturn. The median price fell 12.9% that year, which was the biggest annual decline on record. As inventory has tightened, homes are selling more quickly. “A notable shortening of time on market began this spring, and this has created a general balance between homebuyers and sellers in much of the country," Lawrence Yun, NAR chief economist, said. "This equilibrium is supporting sustained price growth, and homes that are correctly priced tend to sell quickly, while those that aren’t often languish on the market.” NAR projects median existing home prices will rise 4.5% to 5% in 2012 and about 5% in 2013, somewhat stronger than historic norms because of the pronounced inventory shortfall in the low price ranges, Yun said. Yun’s comments mirror those from housing economists at Bank of American Merrill Lynch ($7.95 -0.04%), who recently revised their home price forecast higher, predicting prices would rise by 2% in 2012 and in 2013. They cited inventory falling at an unexpected pace and a shift toward short sales as reasons for the revision. BofAML housing analyst Michelle Meyer said a better alignment of housing supply and demand is adding to the continued housing recovery, despite sluggish growth in the overall economy. During the 2004 to 2005 peak of the housing boom, inventory averaged 4.3 months, and the median list time totaled just four weeks. Prices during that time frame rose 10.3% annually, NAR said. At the end of July, a 6.4-month supply of homes sat on the market at the current sales pace — 31.2% below a year earlier when there was a 9.3-month supply. “If housing construction doesn’t pick up to normal levels within two years, supply shortages could be sustained for an extended period and lead to above average appreciation,” Yun said.
URL to original article: http://www.housingwire.com/news/number-days-it-takes-sell-home-shrinks-30-july
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Justin T. Hilley
The amount of time it takes to sell a home is shrinking, according to a new measure by the National Association of Realtors. For traditional sellers, it’s in the range of historic norms, below the peak levels attained in 2009. The median time a home was listed for sale was 69 days in July, down 29.6% from 98 days a year earlier. The median reflects a wide spectrum, with one-third of homes purchased in July sitting on the market for less than a month, while one in five for at least six months. NAR notes the figures can be misleading at times because any recent flux of new listings can skew the numbers downward. NAR’s new measure reveals a longer selling time than historic findings, which measured only nondistressed homes so comparing the new numbers to past years isn't a true comparison. NAR now figures in short sales, which generally take three months or longer to sell. Factoring out short sales, the median time on market for traditional sellers is about six to seven weeks, NAR said. That compares to 10 weeks in 2009, considered the peak list time for nondistressed buyers since the economic downturn. The median price fell 12.9% that year, which was the biggest annual decline on record. As inventory has tightened, homes are selling more quickly. “A notable shortening of time on market began this spring, and this has created a general balance between homebuyers and sellers in much of the country," Lawrence Yun, NAR chief economist, said. "This equilibrium is supporting sustained price growth, and homes that are correctly priced tend to sell quickly, while those that aren’t often languish on the market.” NAR projects median existing home prices will rise 4.5% to 5% in 2012 and about 5% in 2013, somewhat stronger than historic norms because of the pronounced inventory shortfall in the low price ranges, Yun said. Yun’s comments mirror those from housing economists at Bank of American Merrill Lynch ($7.95 -0.04%), who recently revised their home price forecast higher, predicting prices would rise by 2% in 2012 and in 2013. They cited inventory falling at an unexpected pace and a shift toward short sales as reasons for the revision. BofAML housing analyst Michelle Meyer said a better alignment of housing supply and demand is adding to the continued housing recovery, despite sluggish growth in the overall economy. During the 2004 to 2005 peak of the housing boom, inventory averaged 4.3 months, and the median list time totaled just four weeks. Prices during that time frame rose 10.3% annually, NAR said. At the end of July, a 6.4-month supply of homes sat on the market at the current sales pace — 31.2% below a year earlier when there was a 9.3-month supply. “If housing construction doesn’t pick up to normal levels within two years, supply shortages could be sustained for an extended period and lead to above average appreciation,” Yun said.
URL to original article: http://www.housingwire.com/news/number-days-it-takes-sell-home-shrinks-30-july
For further information on Fresno Real Estate check: http://www.londonproperties.com
FICO dispels myth: Short sale may damage credit score as much as foreclosure
Source: Housingwire
Turns out that a short sale doesn't protect a homeowner's credit score as much as originally thought. This blog post from FICO is several days old, but still too good to give a miss. It's title asks: "Are short sales really that bad?" The answer, they explain, is yes. While it is true that short sales represent slightly better risk than foreclosures, the post states, they do not perform well enough to merit a more positive treatment in the FICO score calculation. In a population study, one out of every two borrowers who experienced a short sale went on to default on another account within two years. "That is exceptionally high risk," writes FICO scientist Frederic Huynh. "Additionally, the overwhelming majority of consumers with short sales have some other evidence of mortgage delinquency." As a result, terrible mortgage-related events, such as foreclosures, short sales, etc., all get filed into the same credit-risk bucket. So while it's true short sales are not as bad for personal credit scores as foreclosure, it's still pretty bad.
URL to original article: http://www.housingwire.com/rewired/fico-dispels-myth-short-sale-may-damage-credit-score-much-foreclosure
For further information on Fresno Real Estate check: http://www.londonproperties.com
Turns out that a short sale doesn't protect a homeowner's credit score as much as originally thought. This blog post from FICO is several days old, but still too good to give a miss. It's title asks: "Are short sales really that bad?" The answer, they explain, is yes. While it is true that short sales represent slightly better risk than foreclosures, the post states, they do not perform well enough to merit a more positive treatment in the FICO score calculation. In a population study, one out of every two borrowers who experienced a short sale went on to default on another account within two years. "That is exceptionally high risk," writes FICO scientist Frederic Huynh. "Additionally, the overwhelming majority of consumers with short sales have some other evidence of mortgage delinquency." As a result, terrible mortgage-related events, such as foreclosures, short sales, etc., all get filed into the same credit-risk bucket. So while it's true short sales are not as bad for personal credit scores as foreclosure, it's still pretty bad.
URL to original article: http://www.housingwire.com/rewired/fico-dispels-myth-short-sale-may-damage-credit-score-much-foreclosure
For further information on Fresno Real Estate check: http://www.londonproperties.com
Index: Valley to continue slow growth
Source: The Business Journal
The Valley economy’s slow growth is expected to creep at an even more sluggish rate, according to the San Joaquin Valley Business Conditions Index released on Wednesday. The overall index of monthly survey published by the Craig School of Business at Fresno State dropped to 50.6 in the month of August. Although it is a decline from the 51.6 index of July, it’s still above the growth neutral index of 50. “Our survey results indicate that growth will remain positive but weak over the next three to six months,” said Ernie Goss, the research associate heading the study, in a release. “However, the national ISM index has now moved below growth neutral for three months in a row.” However the employment category indicated contraction with an index of 48.6 in August, compared to 51.3 in July. Cost of goods continues to rise, as the wholesale price index rose to 62.3 in August, from 52.9 in July. “This is the first indication that the recent period of very benign inflation may be ending,” Goss said. New export orders took nearly a 10-point dive to 34.8 in August, from 44.6 in July. Business confidence dropped even more to 38.8 in August.
URL to original article: http://www.thebusinessjournal.com/news/economy/3157-index-valley-to-continue-slow-growth
For further information on Fresno Real Estate check: http://www.londonproperties.com
The Valley economy’s slow growth is expected to creep at an even more sluggish rate, according to the San Joaquin Valley Business Conditions Index released on Wednesday. The overall index of monthly survey published by the Craig School of Business at Fresno State dropped to 50.6 in the month of August. Although it is a decline from the 51.6 index of July, it’s still above the growth neutral index of 50. “Our survey results indicate that growth will remain positive but weak over the next three to six months,” said Ernie Goss, the research associate heading the study, in a release. “However, the national ISM index has now moved below growth neutral for three months in a row.” However the employment category indicated contraction with an index of 48.6 in August, compared to 51.3 in July. Cost of goods continues to rise, as the wholesale price index rose to 62.3 in August, from 52.9 in July. “This is the first indication that the recent period of very benign inflation may be ending,” Goss said. New export orders took nearly a 10-point dive to 34.8 in August, from 44.6 in July. Business confidence dropped even more to 38.8 in August.
URL to original article: http://www.thebusinessjournal.com/news/economy/3157-index-valley-to-continue-slow-growth
For further information on Fresno Real Estate check: http://www.londonproperties.com
Fresno airport sees record passengers in July
Source: The Business Journal
July was a record-setting month for passengers traveling through Fresno Yosemite International Airport. More than 130,000 flew out of the airport during the month, an increase of 4.3 percent over July 2011 and a 5-percent increase year-to-date. The bump was due in large part to Alaska Airlines, which began offering twice daily non-stop service between Fresno and San Diego on June 4, with current specials starting at $69 each way. In addition, Allegiant Air began flying once a week from Fresno to Honolulu on June 30 and now has plans for second weekly flights starting November 14. Still popular are the daily flights from Fresno to Guadalajara that Mexican airlines Aeromexico and Volaris started up last April. Travel picked up 6.4 percent in 2011 over the year before with m roe than 1.2 million passengers, making it the third-highest traffic year in Fresno Yosemite's 70-year history. In all, nine carriers fly in and out of Fresno with around 41 daily domestic and international departures from FYI.
URL to original article: http://www.thebusinessjournal.com/news/transportation/3153-fresno-airport-sees-record-passengers-in-july
For further information on Fresno Real Estate check: http://www.londonproperties.com
July was a record-setting month for passengers traveling through Fresno Yosemite International Airport. More than 130,000 flew out of the airport during the month, an increase of 4.3 percent over July 2011 and a 5-percent increase year-to-date. The bump was due in large part to Alaska Airlines, which began offering twice daily non-stop service between Fresno and San Diego on June 4, with current specials starting at $69 each way. In addition, Allegiant Air began flying once a week from Fresno to Honolulu on June 30 and now has plans for second weekly flights starting November 14. Still popular are the daily flights from Fresno to Guadalajara that Mexican airlines Aeromexico and Volaris started up last April. Travel picked up 6.4 percent in 2011 over the year before with m roe than 1.2 million passengers, making it the third-highest traffic year in Fresno Yosemite's 70-year history. In all, nine carriers fly in and out of Fresno with around 41 daily domestic and international departures from FYI.
URL to original article: http://www.thebusinessjournal.com/news/transportation/3153-fresno-airport-sees-record-passengers-in-july
For further information on Fresno Real Estate check: http://www.londonproperties.com
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