Tuesday, October 30, 2012

Check Before You Burn starts Nov. 1

Source: The Business Journal

Check Before You Burn, an important and successful wintertime pollution reduction program, will begin its 10th season Nov. 1. The program has resulted in historically clean wintertime air quality in the Valley over the past several years, mostly due to residents who understood how important it was to change deep-seated habits in ways that would keep harmful particulate matter levels at a minimum. “Thanks to the public’s support and cooperation, this rule is the single most effective, lowest cost regulation on record in the Valley,” said Seyed Sadredin, the Air Pollution Control District’s executive director, in a release. “It is absolutely imperative to improved air quality.” Each day, the Air District issues a wood burning forecast by county for one of two levels: “Wood burning prohibited” and “Please Burn Cleanly.” When wood burning is prohibited, all residential wood burning, including fireplaces, wood-burning inserts and heaters, pellet stoves and outdoor devices such as fire pits and chimneys, is prohibited. When the forecast is “Please Burn Cleanly,” the District encourages residents to use manufactured fire logs or dry, seasoned wood. Gas fireplace use is always allowed. There are two exceptions to wood burning prohibitions: ◦If the residence does not have access to natural gas service, even if propane is used; or
 If burning solid fuel is the sole source of heat for the residence. ◦Daily wood-burning forecasts will be available by county each day at 4:30 p.m. at http://valleyair.org/aginfo/WoodBurnPage.htm, by calling 1-800 SMOG INFO (766-4463), or by subscribing to the Air District’s daily air quality forecast at http://www.valleyair.org/lists/list.htm.


URL to original article: http://www.thebusinessjournal.com/news/energy-and-environment/3762-check-before-you-burn-starts-nov-1

For further information on Fresno Real Estate check: http://www.londonproperties.com

Hurricane Sandy financial impact could reach $20 billion

Source: Housingwire
By Kerri Ann Panchuk

Hurricane Sandy swept through 12 U.S. states, causing floods and fires, and an estimated $10 billion to $20 billion in potential losses, research firm Capital Economics estimated Tuesday. Mortgage Bankers Association CEO David Stevens said the trade group remained closed Tuesday and he expects loan application numbers and rates to be affected for the period that includes Hurricane Sandy. But overall, Stevens views the storm as a "temporary blip" that will have no significant impact on the mortgage finance system. And some industries, including home construction and repair, will see a boost in the aftermath, he noted. "Post storm activity will be somewhat stimulative to the construction trades." Last year's Hurricane Irene, which was less severe, ended up costing the Northeast region $10 billion while 2005's Hurricane Katrina led to $100 billion in cleanup expenses around the Gulf Coast, according to data from Paul Ashworth, chief U.S. economist for Capital Economics. CoreLogic ($23.12 -0.46%) estimated that 284,000 properties with a value of $87 billion could be impacted by the storm. Despite the negative impact of the hurricane, Capital Economics contends Sandy's overall effect on economic output "is likely to be small," although the economy will take a hit early on. The states impacted by Sandy represent 23% of the nation's gross domestic product, with the New York metropolitan area alone accounting for 10% of GDP. The financial impact will be short-term and over before the end of this quarter, Capital Economics said. When factoring in the expected boost to GDP on cleanup activity, the overall impact is modest, the research firm said. Sales leading up to the storm will have boosted economic activity, and in many parts of the East Coast individuals will be working from home or returning to their offices as soon as they can. "At this point we're contractually obliged as economists to bring up the infamous parable of the broken window," Capital Economics said. "Fixing a broken window may generate income for the glazier but, since this is just the replacement of damage to the existing capital stock, it doesn't add to the nation's net wealth. That may be so, but it does add to GDP." Much of the clean up spending will be born by insurers and large global reinsurance firms, many of which are based in Europe, the research firm indicated. Jim Vogel with FTN Financial said a return to fully operating financial markets is contingent on logistical factors in New York and the functioning of government agencies in Washington. "Decisions will have to balance the demands of keeping the markets open regardless of circumstances — no small matter of pride — with deference to area officials responsible for repairing and clearing the impact of floods and other damage that more than lived up to the hype and warnings about Sandy," said Vogel. Megan Hopkins contributed to this report.

URL to original article: http://www.housingwire.com/news/sandys-economic-impact-reach-10-20-billion

For further information on Fresno Real Estate check: http://www.londonproperties.com

Friday, October 26, 2012

Open Letter from RE/MAX to President Obama and Governor Romney

Source: Housingwire

Dear President Obama and Governor Romney,

Let housing lead the recovery. We have just witnessed the last of three presidential debates in anticipation of elections now just 2 weeks away. Considering the depth of these debates and the months of political advertisements in this campaign, it is discouraging that there has not been a serious discussion about housing. As leaders, you ignore housing at our peril. Although the economy is recognized as the single most important issue in this campaign, and housing is commonly blamed for the recession and sluggish recovery, it is unimaginable that relevant solutions to housing issues have not been front and center. Over 3.5 million homes have been foreclosed on in the last four years, another 3 million are likely in the next four, one in 213 homes had a foreclosure filing in the third quarter, and over 10.8 million homes remain underwater with mortgages greater than their market value. Housing has always led the country out of the dark days of recession, but that has not happened this time. Still, housing does have the ability to promote a stronger overall recovery if it is allowed to do so. But it will take real political leadership in the White House and Congress to acknowledge this fact and take the appropriate steps. It has been a long and painful road for homeowners and real estate professionals alike, but market performance in recent months has everyone feeling a bit more optimistic. Prices are rising and many underwater homeowners have received a lifeline. But we’re not on solid ground just yet. Significant obstacles remain on the road to recovery. Simple steps would quickly increase home sales by another 700,000, create over a quarter of a million jobs and deposit millions of dollars into the economy. So, what are the obstacles? One aspect of the fiscal cliff you have not discussed is the Mortgage Forgiveness Debt Relief Act of 2007, which is set to expire on December 31. If not extended, this has the potential of immediately reducing home sales by as much as 20%. Troubled homeowners who meet the qualifications for a loan modification or short sale are not likely to pursue either of these options if the remaining mortgage balance is considered taxable income. Many of us in real estate have long been promoting the short sale as a viable alternative to foreclosure. In 2012, short sales began to shed their reputation as a cumbersome and time-consuming process, and their numbers have been steadily increasing. This helped reduce foreclosures and kick-start a struggling housing market. Now, the transaction that serves as salvation for many families facing foreclosure will come to an abrupt halt. The CBO says a two-year extension will save distressed families about $2 billion. The average debt forgiveness in a short sale is $65,000. How are these struggling families going to pay taxes on this amount? Without debt relief they will eventually be forced into bankruptcy or foreclosure. What will the associated costs to society be then? In normal times, most of us would never consider forgiving unpaid tax bills, but these are not normal times. It is more important for our country to get housing on a solid footing, put people back to work and have an economy that everyone can be confident in again. Just like a debt relief policy that is more appropriate to another place and time, unrealistic lending standards are also slowing the recovery. Even with improving home sales, nearly 15% of sales contracts are falling through. This is largely the result of strict lending requirements. Obviously, we’re obsessed with fighting the last war. Today’s lending requirements may have prevented the housing crisis five years ago, but the pendulum has swung too far in the opposite direction. Otherwise creditworthy individuals are being denied or too intimidated to apply for a home loan. Financing appears to be getting more difficult, not less. In August, the average FICO score of a rejected mortgage application at Fannie and Freddie was 734, two points higher than one year ago. And the average down payment of a rejected applicant was 19%. Historically, these are numbers that would seem like a solid lending risk, but for some reason that’s not the case today. Additionally, requirements in the Dodd-Frank Consumer Protection Act that would unreasonably define Qualified Mortgages will certainly have the unintended consequences of making mortgages more difficult to obtain and perhaps add to the cost of financing a home. Even the authors of this legislation have said this was not their intent. Our message to you is simple, “first, do no harm.” Do not disrupt the ability of a fragile housing market to positively impact a stalled economic recovery at this critical time. Housing is a powerful economic engine that can easily add a large number of jobs and cash to the overall economy if it is not prevented from doing so. The Debt Relief Act must be extended, reasonable lending standards established, housing-specific provisions of Dodd-Frank re-examined, and the mortgage interest deduction untouched. These steps will build a solid foundation, restore confidence, and provide clarity to lenders and relief to troubled homeowners. Take these simple steps and watch housing lead the country to real recovery, as it has many times in the past. President Obama and Governor Romney, you still have time to detail your vision. For many Americans, housing is still a crisis and they are anxiously waiting for solutions. David Liniger is Co-Founder & Chairman of the Board at RE/MAX. The opinions expressed here are his own.

URL to original article: http://www.housingwire.com/rewired/open-letter-remax-president-obama-and-governor-romney

For further information on Fresno Real Estate check: http://www.londonproperties.com

Homebuilders need more land as housing recovery continues

By Christina Mlynski

While the U.S. housing industry continues to stay positive, obstacles remain in the wake of the next decade, according to Moody’s Investors Service analysts. In regards to land, companies that turned down inventories quickly and proficiently during the housing bust performed better through the crisis. Many of those must now replenish their supplies to handle the growth they see coming in the next few years, the credit rating agency said. "Firms’ need to replenish their land inventories, to delever and obtain revolvers, as well as the availability of mortgages and the possible scaling back of government support," vice president and senior credit officer Joseph Snider of Moody’s Investors Service said. Some U.S. homebuilders still lack revolving lines of credit as a result of the recent downturn. However, Moody's believes this will not affect company ratings as long as companies can handle growth expectations and remain level with cash. "In answer to questions about firms' increased debt leverage from new land purchases, our position is that we can tolerate this as long as it not excessive and we do not expect it to be permanent," Snider said. During the housing bubble, many builders bought remaining lots of land to build new homes. This has resulted in a scenario where companies cannot sell the lots with homes priced at values comparable to estimates set when the lots were first acquired. The challenge still remains that a firms’ rapid growth could limit leverage. While the debt-to-capitalization ratios remain high, these can gradually be worked down as earnings top up depleted book net-worth positions. "Management teams may soon have to choose between promoting stronger returns and improving their debt leverage, which is a choice that could affect their credit ratings," Snider said. At the same time, there are trends showing support of the turnaround in the housing industry. PulteGroup received its highest third quarter earnings since Q306, increasing its land spend by $90 million to $1 billion.

URL to original article: http://www.housingwire.com/news/homebuilders-buy-more-land-crisis-recovery-continues

For further information on Fresno Real Estate check: http://www.londonproperties.com

Thursday, October 25, 2012

Real Estate: A second Arthur Dyson “extreme” home to appear on HGTV Thursday night

Source: The Fresno Bee
by BoNhia Lee on October 24, 2012

Update: If you missed last week’s “Extreme Homes” episode that included Fresno architect Arthur Dyson’s design of a house in Panama City, Fla. don’t worry. The episode titled, “Hideaway, Body House, Pyramid,” will air again at 8 p.m. Nov. 9, according to the HGTV schedule. A Sanger home designed by Dyson will appear on Thursday’s show, which starts at 9 p.m. There is no rerun date scheduled yet. Original post: Another one of Fresno architect Arthur Dyson’s “extreme” homes will appear on HGTV’s cable television show of the same name 9 p.m. Thursday. This time it’s Dyson’s 1985 design of the Lencioni home in Sanger – a football-shaped house with curves and arches and a shingled exterior nestled in the woods. The first floor of the house has a living and dining room, kitchen, a workshop and garage and open walls connecting it to the second floor where a bedroom, bathroom and study loft are enclosed where needed for privacy. The house is located in a 100-year-old flood plain, according to Dyson. A berm raised into the foundation anchors the house in the grassy, open glade. Last week, Dyson’s design of a Panama City home in Florida was featured on “Extreme Homes.” Read my post about it here. I’m working on finding out if that episode will run again for those of you who missed it. In the meantime, you can watch the Sanger home at 9 p.m. Thursday on HGTV’s “Extreme Homes.“

URL to original article: http://news.fresnobeehive.com/archives/188

For further information on Fresno Real Estate check: http://www.londonproperties.com

Fresno foreclosure rates fall further

Source: The Business Journal

Foreclosure rates in Fresno dropped 0.42 percent from August 2011 to August of this year, CoreLogic, a provider of consumer, financial and property information, reports. The data shows that Fresno’s foreclosure rate was 2.43 percent for August, compared to 2.85 percent in August 2011. The foreclosure rate in Fresno was lower than the national rate that stood at 3.35 percent in August 2012. Foreclosure rates for Fresno have dropped each month dating back to April when the rate was 2.78 percent. Kings, Madera and Tulare counties also saw drops in foreclosure rates. Kings county foreclosure rates dropped by 0.37 percent from August 2011 to August 2012. They dropped by 0.56 percent in Madera County and 0.12 percent in Tulare County. Fresno’s 0.42 percent drop in foreclosures is slightly less than the 0.47 percent decrease for all of California. Also in Fresno, the mortgage delinquency rate decreased in August. CoreLogic found that Fresno’s delinquency rate – which is the percent of mortgage loans 90 or more days delinquent – was 6.42 percent in August, compared to 8.13 percent in August of 2011. That represents a decrease of 1.71 percentage points.

URL to original article: http://www.thebusinessjournal.com/news/real-estate/3723-fresno-foreclosure-rates-fall-further

For further information on Fresno Real Estate check: http://www.londonproperties.com

NAHB sees gradual but steady housing recovery

Source: Housingwire

The National Association of Home Builders is confident in the housing recovery and hopes the mortgage market can keep up. New single-family home sales rose 5.7% from August to September, with 389,000 homes sold last month according to the U.S. Census Bureau. The median sales price of a home in September hit $242,400 while the average price hovered at $292,400. NAHB chairman Barry Rutenberg said consumers, who are sitting on the sidelines, are now more willing to purchase homes as long as they meet the guidelines for obtaining a good mortgage. He called current underwriting practice for mortgage approvals, "exceedingly strict." The number of mortgage applications filed by potential homebuyers and refinancing borrowers fell 12% for the week ending October 19, according to the Mortgage Bankers Association. "Combined with consistent, positive reports on housing starts, permits, prices and builder confidence in recent months, today's data provides further confirmation that a gradual but steady housing recovery is underway across much of the nation,” he said. The inventory of new homes for sales pace saw a slight increase with a 4.5-month supply to the 145,000 units. NAHB chief economist David Crowe of the National Association of Home Builders said builders are continuing to have a time acquiring construction credits, although consumer demand is rising. "Meanwhile, despite a small increase in the inventory of new homes on the market in September, the number of completed new homes for sale is now at an all-time low and the month's supply is at its tightest since October 2005," he said.

URL to original article: http://www.housingwire.com/content/nahb-sees-gradual-steady-housing-recovery

For further information on Fresno Real Estate check: http://www.londonproperties.com

Mortgage rates remain mostly stagnant at record lows

Source: Housingwire

Mortgage rates changed very little this past week, but remain at record low levels, according to Fannie Mae's Primary Mortgage Market Survey. The 30-year, fixed-rate mortgage averaged 3.41% for the week ending Oct. 25, up slightly from 3.37% a week earlier and from 4.10% last year. In addition, the 15-year, FRM averaged 2.72%, which is up from 2.66% last week and 3.38% a year ago. The 5-year Treasury-indexed hybrid adjustable-rate mortgage remained unchanged at 2.75%, which remains well under the 3.08% rate recorded last year. The 1-year Treasury-indexed ARM also hit 2.59%, down from 2.60% last week and 2.90% last year. "Mortgage rates remained relatively unchanged this week and should continue to support the housing market and mortgage refinance," said Frank Nothaft. "Existing home sales in September eased slightly to 4.75 million but was the second strongest annualized pace since May 2010."

URL to original article: http://www.housingwire.com/content/mortgage-rates-remain-mostly-stagnant-record-lows

For further information on Fresno Real Estate check: http://www.londonproperties.com

Tuesday, October 23, 2012

RealtyTrac: 65% of housing markets worse off than in 2008

Source: Housingwire
By Kerri Ann Panchuk

Sixty-five percent of U.S. housing markets studied by RealtyTrac are worse off than they were four years ago, according to the Irvine, Calif.-based real estate research firm. The results of the survey arrive the same day as the final presidential debate and just weeks before the general election. RealtyTrac measured five key housing metrics in 919 U.S. counties and discovered the majority are still suffering from falling average home prices, unemployment, and higher foreclosure inventories, foreclosure starts and distressed sales. Of those counties studied, 580, or 65%, showed results in three of the five metrics as being worse off when compared to 2008 levels. Only 315, or 35%, of the counties had three of five housing metrics with improved performance over four years time. "The U.S. housing market has shown strong signs of life in recent months, but many local markets continue to struggle with high levels of negative equity as the result of home prices that are well off their peaks. In addition, persistently high unemployment rates are hobbling a robust real estate recovery in most areas," said Daren Blomquist, vice president at RealtyTrac. "While the worst of the foreclosure problem is in the rearview mirror for a narrow majority of counties, others are still working through rising levels of foreclosure activity, inventory and distressed sales as they continue to clear the wreckage left behind by a bursting housing bubble." In the majority of the counties studied, home prices are down and unemployment rates are up in more than 90% of the areas. More than half have smaller foreclosure inventories and fewer foreclosure starts than in 2008, while distressed properties make up a smaller share of overall residential sales when compared to four years ago.

URL to original article: http://www.housingwire.com/news/realtytrac-65-housing-markets-are-worse-2008

For further information on Fresno Real Estate check: http://www.londonproperties.com

Mortgage delinquencies spike in September, report says

Source: Housingwire
By Paul Jackson

While the nation's foreclosure inventory continues to shrink, new delinquencies spiked sharply during September 2012, new data released Monday afternoon showed. According to Lender Processing Services ($28.00 -0.5075%), the total U.S. mortgage delinquency rate — loans 30-plus days past due, but not in foreclosure — surged upward by 7.72%, reaching 7.4% in September versus the 6.87% reported one month earlier. Despite the spike, September 2012 delinquency totals still remain below levels seen last year, LPS said. While new delinquencies spiked in September, the volume of properties in foreclosure continues to shrink as banks and other financial instutions continue to work through a backlog of distressed real estate that remains well above historical levels of half of a percent or so, according to most industry experts. LPS said that the nation's foreclosure pre-sale inventory rate fell to 3.87% during September, down 4.05% from one month earlier and down 7.37% less than one year ago. Florida, Mississippi, New Jersey, Nevada, and Louisiana represented the states with the highest percentage of noncurrent loans, according to the data report; Lousiana replaced New York, which had been in the top five for most of this year. Despite the drop in foreclosure inventory, the surge in new delinquencies has led to something not seen this year until now: an increase in the amount of distressed properties, defined as properties 30 or more days delinquent or in foreclosure. According to LPS, there were 5.45 million properties in distress during August 2012; for September, thanks to increasing delinquencies, that number now equals 5.64 million.

URL to original article: http://www.housingwire.com/news/mortgage-delinquencies-spike-september-lps

For further information on Fresno Real Estate check: http://www.londonproperties.com

What Romney's doing about housing behind the scenes

Source: Housingwire

The final presidential debate on foreign policy Monday night avoided the topic of housing altogether. But it seems presidential contender Mitt Romney is diligently doing his 'housing policy' homework behind the scenes. Ty Jenkins, founder and CEO of compliance solutions provider DocuTech, sat down with HousingWire Monday to discuss his recent role as coordinator for a Mortgage Banking Industry Leadership Roundtable that Mitt Romney attended to learn more about issues impacting the industry. As for what Romney wanted to know? The roundtable, which included 25 mortgage industry leaders, discussed everything from the qualified mortgage rule under the Dodd-Frank Act to the Consumer Financial Protection Bureau, as well as the future of Fannie Mae and Freddie Mac. "He's trying to understand why the housing market is not taking off," Jenkins said of Romney's roundtable visit. "Our answer to him was – tell us what the rules are." He added that the overall message to policy makers is simple: "If you want to pass legislation, don't pass open-ended legislation." Jenkins said the presidential contender learned more about the industry's concerns in regards to the qualified mortgage rule for determining ability to repay, which remains largely undefined. Apparently, Governor Romney reached out to the group, so he could prepare for the debates and remain atop of issues impacting the industry. However, to date, there has been only one significant mention of the qualified mortgage rule at the debates.

URL to original article: http://www.housingwire.com/content/what-romneys-doing-about-housing-behind-scenes

For further information on Fresno Real Estate check: http://www.londonproperties.com

Monday, October 22, 2012

Fresno sells Met land to Granville Homes

Source: The Business Journal

The Fresno City Council has approved a plan to sell more than two acres of Fresno Metropolitan Museum property, excluding the museum building itself, to Granville Homes, which plans to use it for homes, rentals and commercial uses. Granville has agreed to pay $634,000 for the property. The approval made by council members on Thursday, strictly involved the sale of land. Granville must provide financing for construction and go through the zoning and permit process. Darius Assemi, president of Granville Homes, estimates the cost of the mixed-use project at $13 million to $15 million. It will feature 69 residential units with between 30 and 30 units built in a first phase. About 24 units will be rentals will be affordable rental housing. Assemi also plans about 10,500 square feet of commercial space. The former Fresno Redevelopment Agency will provide a $3.5 million loan from affordable-housing funds approved before the agency was closed. The city took control of the Met property after the former owners defaulted on a $15.2 million renovation loan guaranteed by the city. The city paid off the loan and took possession of the building and property. The council created the city of Fresno Cultural Arts Properties Inc. as a non-profit organization to hold the property since a government entity cannot hold real estate funded with federal tax credits. In order to sell the property, Cultural Arts Properties sold the real estate to the city for $1. The city then sold the land to Granville Homes.

URL to orignal article: http://www.thebusinessjournal.com/news/real-estate/3662-fresno-sells-met-land-to-granville-homes

For further information on Fresno Real Estate check: http://www.londonproperties.com

Report: Distressed home sales fall

Source: The Business Journal

Distressed home sales dropped in Fresno and Madera counties in September compared to the same month in 2011, according to a report released from the California Association of Realtors on Monday. Madera County reported 60 percent of its total single-family home sales were distressed home sales. That is a drop from 65 percent in September 2011 but an increase from August 2012, when it was 49 percent. Fresno County’s distressed sales were 51 percent of its home sales—a decline from the 57 percent in September 2011 and a rise from 47 percent in August 2012. Kings County did not report distressed sales last year, but it experienced a significant drop from August to September. The county’s distress sales rate was 39 percent in September and 52 percent in August. Tulare County did not report distressed sales in September. The distressed sales rate for the state was 37 percent in September, 37.8 percent in August and 49.2 percent in September 2011.

URL to original article: http://www.thebusinessjournal.com/news/real-estate/3673-report-distressed-home-sales-fall

For further information on Fresno Real Estate check: http://www.londonproperties.com

Friday, October 19, 2012

Foreclosed homeowners shopping again

Source: Housingwire

This post comes from Marilyn Lewis of MSN Money.

Homeowners who went through foreclosure a few years ago are becoming a small but growing force in the homebuying market. The Wall Street Journal calls them "boomerang buyers." The WSJ says that "real-estate agents, mortgage brokers and home builders all say a significant number of new buyers are families and individuals who went through foreclosure as recently as three years ago, the time period that buyers who defaulted on a mortgage must typically wait before becoming eligible for a mortgage backed by the Federal Housing Administration." Rising in Phoenix One is Ronda Martinez, 39, who, with her husband, Mark, lost a $430,000 home to foreclosure in 2007 when they had to move to Phoenix for a job and couldn't sell their home in Perris, Calif. Since then, the Journal says, "the family has repaired their finances" and Ronda Martinez, after losing one job, has found another: "This month, the family is closing on a $150,000 home in Phoenix that has five bedrooms and a pool in the back. "'Initially people are upset and think, "I'll never buy again,"' she said. But 'there's no reason to give up on owning.'" The low cost of buying, compared with rising rental costs, is what's pushing many to re-enter the market, Reuters says: "'Most are not ashamed or bashful about what happened because so many people were forced into that reality in the last six years,' says Graham Epperson, vice president of sales in Arizona for the PulteGroup, a leading U.S. home builder." Lennar, the homebuilding company, sees more of these buyers "coming out of the penalty box." Cornerstone Communities, a San Diego home builder, says about 20 of their 110 closings this year involved buyers with a history of foreclosure or short sale. Moody's Analytics estimates that 729,000 households that were foreclosed on during the housing bust are now eligible to apply for an FHA loan, up from 285,000 in mid-2011. Moody's expects that to grow to 1.5 million by early 2014. It doesn't mean all those people will qualify for mortgages, of course, only that they're eligible to make an application. How do they do it? How did they recover so quickly from foreclosure to buy a home, and when so many other would-be buyers can't get a mortgage when they haven't been through foreclosure? Buyers with a foreclosure history find FHA loans friendlier. They're easier to obtain and require down payments as small as 3.5%. But they're also more expensive over the long run, with slightly higher interest rates and the requirement that buyers purchase mortgage insurance (to protect the lender). The upfront insurance premium is 1.75% of the loan amount (it can be financed). Additional yearly premiums amount to 1.25% of your outstanding loan amount. "'These are not mainstream programs geared for mainstream borrowers,' says Greg McBride, a senior financial analyst at Bankrate.com, who expects to see more of those with blemished credit re-enter the housing market," writes Reuters. Lenders are "much more likely to lend to people who lost a job than to consumers who could have afforded their mortgage but chose to default," Reuters says. The Journal adds: "There is a web of rules for when and how people who have lost homes to foreclosure or short sales or have gone through a bankruptcy can become eligible for a new mortgage. It typically takes three years after a foreclosure or short sale for a buyer to qualify for an FHA-backed loan. In many cases, it takes just one year after a Chapter 13 bankruptcy discharge, according to the agency." Fannie Mae and Freddie Mac require longer -- as long as seven years. Rebuilding credit Besides enduring a waiting period to apply, buyers also must rebuild credit. Foreclosures and short sales deal massive, but potentially temporary, blows to credit histories. Experian, the credit reporting company, says: "According to VantageScore Solutions LLC, a mortgage loan settled through a short sale typically results in a change of 120 to 130 points to the VantageScore credit score. A foreclosure generally causes a decline of 130 to 140 points." The impact and recovery time vary, depending on your scores and on your personal credit history. FICO, the credit scoring company, offers three examples: •A 680 FICO score before foreclosure may fall to between 575 and 595 after and it could take just three years to restore the score. •A 720 score could drop to 570 to 590 and need up to seven years to recover. •A 780 score could fall to 620 to 640 and, likewise, take up to seven years to rebuild. "In general, the higher your starting score, the longer it takes for your score to fully recover," FICO says. It takes seven years for most delinquencies to disappear from your credit report. Chapter 7 bankruptcy can linger for 10 years. Unpaid tax liens hang around "indefinitely." As tough as foreclosure is on your credit scores, bankruptcy is worse, shaving off more points and taking longer for credit to repair. "Extenuating circumstances like a job loss, illness or divorce" could help you establish credit more quickly after foreclosure, says The New York Times. The Times lists requirements for qualifying with Fannie Mae and Freddie Mac: "With such (extenuating) circumstances, Fannie and Freddie specify a two-year wait after a short sale, deed in lieu, or discharge or dismissal of bankruptcy, and three years after foreclosure. Without extenuating circumstances, waits can extend to four years after bankruptcy and seven years after foreclosure." Realty Times offers guidance on repairing credit after foreclosure.

URL to original article: http://www.housingwire.com/content/foreclosed-homeowners-return-market

For further information on Fresno Real Estate check: http://www.londonproperties.com

Borrowers will buy haunted houses, but expect discount

Source: Housingwire Realtor.com said at least 32% of potential homebuyers would consider buying a haunted house or a property suspected of paranormal activity, according to a recent survey. Still, 29% of those willing buyers believe a discount of at least 20% is in order since ghosts and flying plates tend to lower a property's value. About 33% said they would consider a haunted home, while another 35% are against the idea entirely. Two percent of those surveyed said they'd be willing to pay more for a haunted house. But if your home has ghostly presences, it's wise to tell them not to act up on the property tour. Sixty-two percent of the Realtor.com survey respondents said a warm or cold spot (perhaps produced by your ghost) could kill the sale. Strange noises, footsteps and slamming doors also are considered deterrents for 48% of respondents. Another 41% are okay with ghosts as long as the ghosts remain invisible. Other than that, your less than lively houseguests are not a deal breaker, especially around Halloween. What rumored spooky happenings would NOT stop you from purchasing a home (assuming the home is otherwise a good fit) (Select all that apply)? Source: Realtor.com ■62% - Warm or cold spots ■48% - Strange noises (footsteps, doors slamming) ■44% - Objects being moved from where they were placed ■45% - Flickering lights/appliances ■43% - Strange sensations ■41% - Ghost sightings ■36% - Levitating objects ■35% - Strange voices ■24% - All of the above would stop me from purchasing a home How much would a “haunted” home have to be discounted (from its market value) for you to decide to purchase it? ■15% - 0% I would pay full market value of the home ■12% - 1-10% less than market value ■17% - 11-20% less than market value ■18% - 21-30% less than market value ■19% - 31-50% less than market value ■17% - 51%+ less than market value ■2% - I would pay more than market value for a “haunted” home

URL to original article: http://www.housingwire.com/content/consumers-will-buy-haunted-house-expect-discount

For further information on Fresno Real Estate check: http://www.londonproperties.com

Fewer distressed homes could spur home construction

Source: Housingwire

Positive housing data that shows existing-home sales up from year ago levels should be weighed against ongoing employment concerns and consumers' economic fears, Fitch Ratings said in a new report Friday. In other words, the nation may be in a modest housing recovery, but too many outliers remain to declare an end to the nation's real estate troubles. As for who may benefit from housing data that shows the supply of distressed assets dwindling and rents rising, Fitch points to homebuilders who may experience an uptick in new home construction. The Commerce Department even reported this week that new home construction rose 15% in September to 872,000 units on a seasonally-adjusted basis. While existing-home sales fell month-over-month in September, they remain significantly higher than year ago levels. "However, we note that new home construction numbers can be volatile as they fluctuate more frequently versus other indicators," said Robert Curran, managing director of homebuilding for Fitch. "Although starts have been stronger for several months, we are hesitant to suggest that a V-shaped housing recovery is forming." Today, there is less competition from distressed home sales and rental prices are on the rise, Curran noted. These factors alone could send homebuyers scrambling for the creation of new homes. With this in mind, Curran says single-family housing starts could rise a total of 19% in 2012, while existing home sales are expected to grow 8.5% for the year. He expects "further moderate improvement" next year.

URL to original article: http://www.housingwire.com/content/fewer-distressed-homes-could-spur-home-construction

For further information on Fresno Real Estate check: http://www.londonproperties.com

Existing home sales fall, but up 11% from last year

Source: Housingwire
By Kerri Ann Panchuk

September existing-home sales fell slightly from the previous month, but remain well above year-ago levels as prices continue to escalate on new demand in key real estate markets. The National Association of Realtors said existing-home sales declined 1.7% from August to September, with 4.75 million units sold last month, down from 4.83 million in August. Still, September numbers are up 11% from the 4.28 million units sold a year ago. Overall, real estate is performing better than it was in 2011 with September home prices recording their seventh consecutive month of year-over-year increases, NAR said. "Despite occasional month-to-month setbacks, we're experiencing a genuine recovery," said Lawrence Yun, chief economist with NAR. "More people are attempting to buy homes than are able to qualify for mortgages, and recent price increases are not deterring buyer interest. Rather, inventory shortages are limiting sales, notably in parts of the West." The national median price for an existing home shot up 11.3% from last year to $183,900 in September, making it the seventh consecutive month of annual price increases. Distressed properties, including foreclosures and short sales, represented 24% of all September sales, an increase from 22% in August and down from 30% a year ago. Foreclosures generally sold at a 21% discount while short sales sold 13% under market value in September, NAR said. The country's total pipeline of existing inventory fell 3.3% in September to 2.32 million homes, which reflects a 5.9-month supply. Today's inventory level is 20% below year ago levels when the nation carried an eight-month supply. "The shrinkage in housing supply is supporting ongoing price growth, a pattern that could accelerate unless home builders robustly ramp up production," Yun said. Homes also are spending less time on the market, with the median listing time now running 70 days, down from 101 days in September of 2011. About 32% of homes sold last month spent less than 30 days on the market. Nineteen percent remained listed for six months or longer.

URL to original article: http://www.housingwire.com/news/existing-home-sales-fall-11-last-year

For further information on Fresno Real Estate check: http://www.londonproperties.com

Thursday, October 18, 2012

Gasoline prices - finally - begin to slide

Source: The Business Journal
Written by JONATHAN FAHEY, AP Energy Writer

(AP) — Gasoline prices have begun their seasonal slide. Better late than never, drivers say. The national average retail price has fallen for ten straight days and is now $3.74 per gallon. It could mark the beginning of the usual autumn decrease that was delayed this year because of refinery problems and high oil prices. Tom Kloza, chief oil analyst at the Oil Price Information Service, predicts drops of 5 cents to 15 cents per week for the next three weeks. Over the next several weeks the national average could be at or below where it was last year. "There's some nice relief coming," he said. It can't come soon enough for Mary Hess, who commutes 40 miles each way from her home in Sodus Point, N.Y. to Oswego, N.Y., where she teaches English. She hasn't noticed much of a drop — she's still paying $4.04 per gallon to fill up her Buick Century. Gasoline is among the biggest parts of her budget — and she doesn't think it should be. "I'm frustrated more than anything," she said. Gasoline prices typically decline in the fall as refiners switch to cheaper fuel blends and drivers take a break from road trips. This year a series of refinery and pipeline problems sent gasoline supplies plummeting. That sent wholesale gasoline buyers and traders scrambling to purchase whatever they could, at ever higher prices, to secure supply. "It was a cluster of random coincidental events and the buying had a panic nature to it," Kloza said. Gasoline prices were already steep — they were on track to set an annual record by mid-summer — because of relatively high global crude oil prices. Brent, the type of crude most important in determining the price of gasoline, has averaged $112 per barrel this year. Global oil demand is on track to set a record this year despite economic uncertainty. And the standoff over Iran's nuclear program has raised fears that oil supplies could be disrupted if tensions escalate. Against that backdrop, the nation's gasoline infrastructure got slammed. In August, ruptures to pipelines that serve the Great Lakes and refinery outages in Indiana and Illinois sent gasoline prices higher in the Midwest. Then a fire at a Chevron refinery in Richmond, Calif. crippled a major contributor to California's gasoline supplies. Then Hurricane Isaac forced several Gulf Coast refineries to shut or slow down operations. As those refineries ramped back up, California saw more trouble. A pipeline that serves Bay Area refineries closed, two refineries were offline for maintenance and an Exxon Mobil Corp. refinery in Torrance, Calif., near Los Angeles shut down because of a surprise power outage. The national average price kept rising after Labor Day, when prices normally start to fall. It topped out for the season at $3.87 on Sept. 14 and California prices hit a record $4.67 per gallon on Oct. 7. On the East Coast, gasoline supplies dipped to a four-year low, keeping prices stubbornly high. Then — finally — the market began to stabilize. The government reported Wednesday that gasoline supplies are heading back up. They had fallen for 10 of the last 11 weeks. That led to a dramatic drop in wholesale gasoline prices in regional spot markets, according to Kloza, that will soon translate into lower prices at the pump. California spot prices are down 30 percent over two weeks. Prices elsewhere in the country have declined between 15 percent and 27 percent. In Chicago, wholesale prices have fallen to $2.36 per gallon. That could bring retail gasoline prices in some parts of the Midwest to near $3 per gallon in the coming weeks. The average price at the pump fell 22 cents in Ohio and 16 cents in Wisconsin in the past week. Those are two key battleground states in the presidential election, with 18 and 10 electoral votes, respectively. The rest of the nation's drivers won't be quite so lucky. But, still, the national average could be on its way to $3.50 per gallon, or below.

URL to original article: http://www.thebusinessjournal.com/news/national/3646-gasoline-prices-finally-begin-to-slide

For further information on Fresno Real Estate check: http://www.londonproperties.com

Friday, October 12, 2012

Housing recovery should not be confused with mortgage recovery

Source: Housingwire

The common thread from the ongoing Zillow ($36.86 -0.96%) housing conference is this: Housing is in a recovery, mortgages are not. It is a very important distinction, one excellently made by panelists at the Zillow conference. John Burns, once though of as a permabear in the housing industry, is suddenly more positive about housing. As he points out, only 10% of total households remain in negative equity. So housing prices are rising and reducing this number. Starts are strong. Homebuilders, whom Burns consults with his eponymous firm, are seeing businesses improve. So good for housing. Listening to the same panel though, mortgages are in another universe. "Those who deal with MBS," Burns said, "are in hell." Mark Hanson of Mark Hanson Advisers said the five to six million mortgage modifications in the last few years only keep the homeowner in a debt prison, with little hope in the future. "They are zombie renters in their own homes," Hanson said. "The repeat buyer has died." Pointing to the common thread, speaking earlier, the Federal Housing Administration acting commissioner Carol Galante said the private mortgage market needs to aggressively return in order to sustain these housing gains. After listening to Hanson speak, I'm not feeling very confident. He added that it's not a lack of mortgage credit, but a lack of credit-worthy borrowers. Without a private market for securitization, Burns said, mortgages originated without the aid of the government in some way or another are unlikely to come back in force.

URL to original article: http://www.housingwire.com/rewired/housing-recovery-should-not-be-confused-mortgage-recovery

For further information on Fresno Real Estate check: http://www.londonproperties.com

CoreLogic: 2012 housing recovery is durable

Source: Housingwire

The overall U.S. economy remains lackluster, but gains in housing during 2012 were significant enough to remain durable, says Mark Fleming, chief economist for CoreLogic. Fleming points out in CoreLogic's latest MarketPulse report that housing is now contributing to the U.S. gross domestic product. Supply-and-demand dynamics also are back in line with prices dropping and the supply of new buyers restricted by homeowners trapped in negative-equity situations, he added. "We estimate that 45% of all mortgaged homeowners can be characterized as under-equitied, meaning they have insufficient levels of equity to provide a down payment on a traditional conventional mortgage (less than 20% equity or underwater)," Fleming wrote. Even as the housing market cools heading into the winter, Fleming believes gains made in the first part of the year were significant enough to make the 2012 housing recovery durable. "Given the solid performance of home prices in the spring of 2012, even a stronger-than-expected decline in the fourth quarter is unlikely to wipe away all of the gains made," Fleming noted.

URL to original article: http://www.housingwire.com/content/corelogic-2012-housing-recovery-durable

For further information on Fresno Real Estate check: http://www.londonproperties.com

Friday, October 5, 2012

US unemployment falls to 7.8 pct., a 44-month low

Source: The Business Journal

Written by CHRISTOPHER S. RUGABER, AP Economics Writer

(AP) — The U.S. unemployment rate fell to 7.8 percent last month, dropping below 8 percent for the first time in nearly four years and giving President Barack Obama a potential boost with the election a month away. The rate dropped from 8.1 percent because the number of people who said they were employed jumped by 873,000 — an encouraging sign for an economy that's been struggling to create enough jobs. The number of unemployed Americans is now 12.1 million, the fewest since January 2009. The Labor Department said employers added 114,000 jobs in September. It also said 86,000 more jobs were added in July and August than the department had initially estimated. Still, many of the jobs the economy added last month were part time. The number of people with part-time jobs who wanted full-time work rose 7.5 percent to 8.6 million, the most since February 2009. But overall, Friday's report dispelled some fears about the job market. Average wages rose. And more people started looking for work. The revisions show employers added 146,000 jobs a month from July through September, up from 67,000 in the previous three months. The 7.8 percent unemployment rate for September matches the rate in January 2009, when Obama took office. In the months after Obama's inauguration, the rate rose sharply and had topped 8 percent for 43 straight months. The decline in unemployment comes at a critical moment for Obama, who is coming off a weak debate performance this week against GOP challenger Mitt Romney. The September employment report may be the last that might sway the remaining undecided voters. The jobs report for October will be released only four days before Election Day. Speaking Friday in Fairfax, Va., Obama said the lower unemployment rate shows that the "country has come too far to turn back now." Romney released a statement Friday pointing out that the number of jobs on employers' payrolls in September was lower than the revised 142,000 for August. He also noted that manufacturing has lost 600,000 jobs since Obama took office. "This is not what a real recovery looks like," Romney said in a statement. But Sal Guatieri, an economist at BMO Capital Markets, said the report signals improvement. "An overall better-than-expected jobs report, consistent with most recent data that suggest the economy is gaining some momentum," Guatieri said in a note to clients. "The sizeable drop in the unemployment rate could lift the president's re-election chances following a post-debate dip." Labor Secretary Hilda Solis was asked on CNBC about suspicions that the Obama administration might have skewed the jobs numbers to aid Obama's re-election prospects. "I'm insulted when I hear that because we have a very professional civil service," Solis said. "I have the highest regard for our professionals that do the calculations at the (Bureau of Labor Statistics). They are trained economists." After the jobs report was released, stocks rose. The Dow Jones industrial average gained 60 points in the first hour of trading before trimming some of its gains. Broader stock indexes also rose. The yield on the 10-year U.S. Treasury note climbed to 1.73 percent from 1.68 percent just before the report. That suggested that investors were more willing to take on risk by shifting money from bonds into stocks. The job market has been improving, sluggishly but steadily. Jobs have been added for 24 straight months. There are now 325,000 more than when Obama took office. The jump in the number of employed Americans that the government reported Friday comes from a survey of 60,000 households that determines the unemployment rate. The government asks a series of questions, by phone or in person. They include: Do you own a business? Did you work for pay? If not, did you provide unpaid work for a family business or farm? (Those who did are considered employed.) Afterward, the survey participants are asked whether they had a job and, if so, whether it was full or part time. The government's definition of unemployed is someone who's out of work and has actively looked for a job in the past four weeks. The government also conducts a second survey of roughly 140,000 businesses to determine the number of jobs businesses created or lost. The September job gains were led by the health care industry, which added 44,000 jobs — the most since February. Transportation and warehousing also showed large gains. The government's revised totals also showed that federal, state and local governments added 63,000 jobs in July and August, compared with earlier estimates that showed cuts in government jobs. The "U.S. could be growing jobs at a marginally faster pace than feared mid-summer," Guy LeBas, a strategist at Janney Capital Markets, wrote in a research note. "Even with the issues in Europe and slowing production in China, U.S. economic activity does not look to be bearing the brunt of global downside, at least not anymore."

URL to original article: http://www.thebusinessjournal.com/news/national/3487-us-unemployment-falls-to-78-pct-a-44-month-low

For further information on Fresno Real Estate checkL http://www.londonproperties.com

Valley gas prices soar overnight

Source: The Business Journal

Gas prices finally shot up throughout California on Friday as analysts predicted while Valley drivers are feeling the same pain. The average price of regular gas across the state jumped nearly 20 cents in some areas to nearly $4.49 a gallon, the highest in the nation, according to AAA's Daily Fuel Guage Report. In the Fresno area the price of a gallon of regular unleaded gasoline went from $4.27 yesterday to $4.40 currently while the average price on the same day last year was $3.79. Meanwhile, diesel prices in the area average $4.47, about the same as yesterday but up from $4.10 last year. The highest recorded average price for unleaded gasoline in the Fresno area was $4.63 a gallon in June 2008 while diesel hit its peak in July 2008 at $5.17. In the Visalia-Tulare-Porterville area, average gasoline prices went from $4.31 yesterday to $4.45 for a gallon of regular unleaded today. Last year, prices averaged $3.85 a gallon. Diesel prices in the area were mostly unchanged at $4.46 but are still up significantly from $4.10 last year. The price of unleaded gasoline in the area spiked in June 2008 at $4.47 a gallon while diesel spiked in the same month at $5.24. The average price of regular gasoline in California was $3.82 a gallon on this day last year while diesel sits at $4.48, up from $4.14 a year ago. Analysts say prices spiked Friday due in part to reduced supply from an ExxonMobil refinery in Torrance that experienced a power outage on Monday. The refinery has since come back online.

URL to original article: http://thebusinessjournal.com/news/transportation/3499-valley-gas-prices-soar-overnight

For further information on Fresno Real Estate check: http://www.londonproperties.com