Source: Housingwire
Posted by Megan Hopkins
In a recent survey conducted by real estate broker Redfin, 66% of those polled listed low inventory as a high concern. That number is up from 59% in the fourth quarter, which indicates more buyers becoming increasingly frustrated with the lack of inventory.
Had I been surveyed, I would have marked the same thing as those 66%. Currently in the home searching process, I can attest to the shockingly low supply of homes on the market. After getting married nearly a year ago, my husband and I have been living in an apartment. However, when our lease runs up in the middle of May, we are hoping to already be moved into a home. This is a hope that seems more and more unrealistic with each week that passes by.
Every morning when I wake up, I diligently check my Redfin mobile app for any new homes that may have magically popped up over night. There’s always one or two that are in our price range, but just lack the specifics of what we need in our first home.
Having a deadline of when we need to be out of our apartment makes it increasingly frustrating when the housing market is slim pickings right now. Each day our lease comes closer to ending, I get more and more nervous that we may not find a house before then.
Not only that, but with each passing day, interest rates continue to inch up. The number one reason my husband and I chose to buy our first home now is low interest rates. It seems we are in the majority, as 58% of those surveyed by Redfin cited low interest rates as their top reason to buy as well. With such a low inventory, it is taking longer for buyers to find a home and the chance of locking in at a higher interest rate becomes more and more inevitable.
While I’m on the vent train, can I just talk about how many offers new listings are getting right now? According to Redfin, many homes are receiving dozens of offers at once. And I believe it. My husband and I found a home we loved three weeks ago, but there were multiple offers placed on the home and it was taken off the market four days later… before we had a chance to take a second look at the property.
So I’ll wrap this up by saying this. As a housing reporter, I applaud the healthy buyer activity happening right now. But as a first time homebuyer, I would like to see more inventory and less competition.
URL to original article: http://www.housingwire.com/rewired/2013/02/28/diary-frustrated-first-time-homebuyer
For further information on Fresno Real Estate check: http://www.londonproperties.com
Thursday, February 28, 2013
LPS: Home prices could skyrocket 35% without affecting affordability
Source: Housingwire
By Megan Hopkins
Home prices could rise 35% without stretching affordability, said Raj Dosaj, vice president of the behavioral library and home price index at LPS Applied Analytics. Dosaj made that bold assertion while speaking at "Outlook: Is the Housing Recovery for Real?", a webinar hosted and moderated by HousingWire's executive editor, Jacob Gaffney. Dosaj was joined by Christopher Whalen, executive president and managing director for Carrington Investment Co. Whalen was quick to say the housing recovery is real. "I think given the magnitude of the drop that we saw, you almost had to have a rebound and that’s indeed what is happening," Whalen said. Dosaj followed up on his bold statement by saying this increase could be less if rates increase as they are expected to do. During the HousingWire webinar, Dosaj displayed a graph revealing the average mortgage payment to median-income ratio. The annual graph, which goes back to 1995, has never been lower than January 2013, which dipped to just below 18%. "During the peak of the housing run-up, affordability was stretched as the market sold of," noted Dosaj. "As home prices dropped, affordability dropped." According to the most recent Standard & Poor’s/Case-Shillerhome price report, home prices rose 7.3% in 2012. The latest Federal Housing Finance Agency report revealed a 5.5% growth from the fourth quarter of 2011 to the same quarter in 2012. Both reports indicate a strong start to 2013. So could Dosaj be right? "There are definite signs that there's room for growth," concluded Dosaj. "Things are generally looking good for the housing market."
URL to original article: http://www.housingwire.com/news/2013/02/28/lps-home-prices-could-skyrocket-35-without-affecting-affordability
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Megan Hopkins
Home prices could rise 35% without stretching affordability, said Raj Dosaj, vice president of the behavioral library and home price index at LPS Applied Analytics. Dosaj made that bold assertion while speaking at "Outlook: Is the Housing Recovery for Real?", a webinar hosted and moderated by HousingWire's executive editor, Jacob Gaffney. Dosaj was joined by Christopher Whalen, executive president and managing director for Carrington Investment Co. Whalen was quick to say the housing recovery is real. "I think given the magnitude of the drop that we saw, you almost had to have a rebound and that’s indeed what is happening," Whalen said. Dosaj followed up on his bold statement by saying this increase could be less if rates increase as they are expected to do. During the HousingWire webinar, Dosaj displayed a graph revealing the average mortgage payment to median-income ratio. The annual graph, which goes back to 1995, has never been lower than January 2013, which dipped to just below 18%. "During the peak of the housing run-up, affordability was stretched as the market sold of," noted Dosaj. "As home prices dropped, affordability dropped." According to the most recent Standard & Poor’s/Case-Shillerhome price report, home prices rose 7.3% in 2012. The latest Federal Housing Finance Agency report revealed a 5.5% growth from the fourth quarter of 2011 to the same quarter in 2012. Both reports indicate a strong start to 2013. So could Dosaj be right? "There are definite signs that there's room for growth," concluded Dosaj. "Things are generally looking good for the housing market."
URL to original article: http://www.housingwire.com/news/2013/02/28/lps-home-prices-could-skyrocket-35-without-affecting-affordability
For further information on Fresno Real Estate check: http://www.londonproperties.com
Fed cuts would have limited immediate Calif impact
Source: The Business Journal
Written by Associated Press
(AP) — Looming federal spending cuts are expected to dampen California's economic recovery at a time when a housing rebound and job growth are gaining traction, but come Friday the immediate effect may not prove to be the fiscal doomsday that President Barack Obama has predicted. The White House estimates that in California, 64,000 civilian defense workers would be furloughed and 1,200 teaching and teacher aid jobs would be put at risk from the mandatory budget reductions known as the "sequester." Obama administration officials also said the state will see program cuts in children's vaccines, senior nutrition, student work-study jobs and assistance for victims of domestic violence. While a bigger concern is what might happen in the long term, most of the effects will not be felt right away. Even if the $85 billion in across-the-board reductions happen nationally, the amount cut in California will be just a fraction of the state's $2 trillion gross domestic product, which according to 2012 estimates would be the world's eighth largest economy. Federal furloughs won't start for a month due to notification requirements, giving negotiators some breathing room to work on a deal. And while Obama said there is no smart way to let the cuts kick in, members of Congress are considering taking action to give agencies flexibility over what to cut. Meanwhile, some of the biggest drivers of federal spending such as Social Security and Medicaid are exempt from the automatic reductions. "You always have to assume that nothing will happen for a month, and by then they may have resolved it," said Stephen Levy, director and senior economist at the Palo Alto-based Center for Continuing Study of the California Economy. "Who knows who's playing chicken?" Most state economic forecasts already have accounted for some kind of federal budget cuts, meaning that California can expect tepid growth of about 2 percent for this year. The biggest fear economists and state officials have is any long-term impacts on California's recovery. "If sequestration results in a broader decline in consumer or business confidence or the stock market, the slowdown could be more pronounced," said Jason Sisney of the state's nonpartisan Legislative Analyst's Office. Robert A. Kleinhenz, chief economist at the Los Angeles County Economic Development Corporation, said federal cuts eventually could put about 175,000 non-defense jobs in California at stake because of their duration — $1.2 trillion over 10 years. He said the fallout from the political impasse is hard to quantify because it creates so much uncertainty for the private sector. Employers may not hire or put off expansion plans, while employees face lower wages and potential job losses. The cuts come at a time when California's economy is recovering from the recession and is adding more jobs than any other state. Political leaders are hoping California's own budget remains balanced. They will mean less funding for science and health research, which would slow innovation on clean energy technology and treatments for diseases. And just like everywhere else, air traffic and safety reductions could trigger longer wait times at security checkpoints, screening at customs and border crossings could take longer, and national parks could reduce operating hours. One notable cut is research funding, because many federal awards go to California's universities through training grants, fellowships, and research and development contracts. The University of California system receives approximately $3.5 billion a year in federal funding, largely from the National Institutes of Health to research cancer, heart disease and a host of other ailments. Cuts from the National Science Foundation and other federal agencies also would affect clean energy, computing and other new technology. "It's not like turning on and off a switch. If you start slowing down this kind of activity, it takes a while to bring it back up," said Gary Falle, a lobbyist for the UC system in Washington, D.C. For college students, there also will be less student aid in the form of work-study jobs. The White House estimates that about 9,600 fewer low-income students would receive work-study jobs in California. Between 350,000 and 400,000 Californians could be affected by a 10 percent reduction in extended unemployment benefits, said Loree Levy, a spokeswoman for the state Employment Development Department. "These are the benefits that long-term unemployed individuals receive once they run out of regular state-provided benefits," she said. Levy said it's not clear yet whether that will mean less money for the unemployed because the state has yet to receive guidance from the Labor Department. While California's economy relies far less on the military than it did in the past, the military budget reductions would still be felt, especially in the communities around bases. Military officials and defense contractors are advocating against cuts to Marine Corps bases in Miramar and Camp Pendleton, as well as naval bases in Coronado and San Diego. March Air Reserve Base near Riverside, the largest air reserve base in the country, could see training flight hours reduced by almost 20 percent and furloughs to civilian employees. Some Republicans say cuts are necessary to bring the national debt under control, but they don't want to see a disproportionate cut on defense. The automatic spending cuts were designed to be equally split between defense and domestic discretionary spending. "I think one of the things we do have to do is cut spending," state Assemblyman Jeff Gorell, R-Camarillo, said, adding that he saw "a tremendous amount of waste" during his time in the military.
URL to original article: http://thebusinessjournal.com/news/state/5126-fed-cuts-would-have-limited-immediate-calif-impact
For further information on Fresno Real Estate check: http://www.londonproperties.com
Written by Associated Press
(AP) — Looming federal spending cuts are expected to dampen California's economic recovery at a time when a housing rebound and job growth are gaining traction, but come Friday the immediate effect may not prove to be the fiscal doomsday that President Barack Obama has predicted. The White House estimates that in California, 64,000 civilian defense workers would be furloughed and 1,200 teaching and teacher aid jobs would be put at risk from the mandatory budget reductions known as the "sequester." Obama administration officials also said the state will see program cuts in children's vaccines, senior nutrition, student work-study jobs and assistance for victims of domestic violence. While a bigger concern is what might happen in the long term, most of the effects will not be felt right away. Even if the $85 billion in across-the-board reductions happen nationally, the amount cut in California will be just a fraction of the state's $2 trillion gross domestic product, which according to 2012 estimates would be the world's eighth largest economy. Federal furloughs won't start for a month due to notification requirements, giving negotiators some breathing room to work on a deal. And while Obama said there is no smart way to let the cuts kick in, members of Congress are considering taking action to give agencies flexibility over what to cut. Meanwhile, some of the biggest drivers of federal spending such as Social Security and Medicaid are exempt from the automatic reductions. "You always have to assume that nothing will happen for a month, and by then they may have resolved it," said Stephen Levy, director and senior economist at the Palo Alto-based Center for Continuing Study of the California Economy. "Who knows who's playing chicken?" Most state economic forecasts already have accounted for some kind of federal budget cuts, meaning that California can expect tepid growth of about 2 percent for this year. The biggest fear economists and state officials have is any long-term impacts on California's recovery. "If sequestration results in a broader decline in consumer or business confidence or the stock market, the slowdown could be more pronounced," said Jason Sisney of the state's nonpartisan Legislative Analyst's Office. Robert A. Kleinhenz, chief economist at the Los Angeles County Economic Development Corporation, said federal cuts eventually could put about 175,000 non-defense jobs in California at stake because of their duration — $1.2 trillion over 10 years. He said the fallout from the political impasse is hard to quantify because it creates so much uncertainty for the private sector. Employers may not hire or put off expansion plans, while employees face lower wages and potential job losses. The cuts come at a time when California's economy is recovering from the recession and is adding more jobs than any other state. Political leaders are hoping California's own budget remains balanced. They will mean less funding for science and health research, which would slow innovation on clean energy technology and treatments for diseases. And just like everywhere else, air traffic and safety reductions could trigger longer wait times at security checkpoints, screening at customs and border crossings could take longer, and national parks could reduce operating hours. One notable cut is research funding, because many federal awards go to California's universities through training grants, fellowships, and research and development contracts. The University of California system receives approximately $3.5 billion a year in federal funding, largely from the National Institutes of Health to research cancer, heart disease and a host of other ailments. Cuts from the National Science Foundation and other federal agencies also would affect clean energy, computing and other new technology. "It's not like turning on and off a switch. If you start slowing down this kind of activity, it takes a while to bring it back up," said Gary Falle, a lobbyist for the UC system in Washington, D.C. For college students, there also will be less student aid in the form of work-study jobs. The White House estimates that about 9,600 fewer low-income students would receive work-study jobs in California. Between 350,000 and 400,000 Californians could be affected by a 10 percent reduction in extended unemployment benefits, said Loree Levy, a spokeswoman for the state Employment Development Department. "These are the benefits that long-term unemployed individuals receive once they run out of regular state-provided benefits," she said. Levy said it's not clear yet whether that will mean less money for the unemployed because the state has yet to receive guidance from the Labor Department. While California's economy relies far less on the military than it did in the past, the military budget reductions would still be felt, especially in the communities around bases. Military officials and defense contractors are advocating against cuts to Marine Corps bases in Miramar and Camp Pendleton, as well as naval bases in Coronado and San Diego. March Air Reserve Base near Riverside, the largest air reserve base in the country, could see training flight hours reduced by almost 20 percent and furloughs to civilian employees. Some Republicans say cuts are necessary to bring the national debt under control, but they don't want to see a disproportionate cut on defense. The automatic spending cuts were designed to be equally split between defense and domestic discretionary spending. "I think one of the things we do have to do is cut spending," state Assemblyman Jeff Gorell, R-Camarillo, said, adding that he saw "a tremendous amount of waste" during his time in the military.
URL to original article: http://thebusinessjournal.com/news/state/5126-fed-cuts-would-have-limited-immediate-calif-impact
For further information on Fresno Real Estate check: http://www.londonproperties.com
Truck emissions inspectors scour Fresno area
Source: The Business Journal
Written by Ben Keller, The Business Journal
Teams of inspectors from the California Air Resources Board were in Fresno today checking big rig engines for compliance with the agency's Truck and Bus regulation. The regulation requires all trucks in the state to have 2010 model year engines or the equivalent particulate matter (PM) retrofits by 2023. Beginning January 1, heavy duty diesel trucks with engines dating from 2000 to 2004 are required to have soot filters, making them 2010 equivalent for emissions. Working with the California Highway Patrol, teams of CARB inspectors set up five locations in the Fresno area to stop passing truck drivers for a check of their equipment. Inspectors checked for emissions control labels, exhaust smoke and other signs of excess emissions. CARB's Public Information Officer Karen Caesar said the average person may not always notice, but 2010 or equivalent engines reduce emissions by 85 percent when compared to 2000 engines. "Diesel engines last forever and when you have truck 30 to 40 years on the road, it's not good for the air," she said. Trucks originating outside of California are also subject to the regulation, she added, so the agency is working hard to make sure truck operators everywhere are informed about the requirements and get into compliance. "These regulations are important and compliance is not optional," she said. "We have to let these folks know and give them the information." The latest checkpoints were one of dozens that go on throughout the year in California but the first this year for the Fresno area. Last August, similar teams were set up at 40 different weigh stations, distribution centers and other locations throughout the state to inspect some 4,000 trucks as part of the "Gear Up For Clean Trucks" campaign. From that effort, CARB noted a rate of 80 percent of trucks compliant with the regulation either through diesel soot filters or new and upgraded engines. When truck operators aren't in compliance, penalties start at a minimum of $1,000 per violation per month and will increase significantly over time. Non-compliance can also result in a registration block by the Department of Motor Vehicles on the truck or having the vehicle impounded by the CHP until it in compliance. Small fleets with three or fewer trucks can delay compliance until January 2014 by reporting their truck information to CARB. More information on how to comply with the Truck and Bus regulation as well as incentive money is available at ARB's TruckStop website at arb.ca.gov/truckstop or by calling 1-866-6-DIESEL (634-3735). California is home to 200,000 trucking business and 450,000 registered heavy duty diesel trucks. Trucks and buses account for about 32 percent of the statewide emissions of NOx and about 40 percent of diesel PM emissions.
URL to original article: http://thebusinessjournal.com/news/energy-and-environment/5120-truck-emissions-inspectors-scour-fresno-area
For further information on Fresno Real Estate check: http://www.londonproperties.com
Written by Ben Keller, The Business Journal
Teams of inspectors from the California Air Resources Board were in Fresno today checking big rig engines for compliance with the agency's Truck and Bus regulation. The regulation requires all trucks in the state to have 2010 model year engines or the equivalent particulate matter (PM) retrofits by 2023. Beginning January 1, heavy duty diesel trucks with engines dating from 2000 to 2004 are required to have soot filters, making them 2010 equivalent for emissions. Working with the California Highway Patrol, teams of CARB inspectors set up five locations in the Fresno area to stop passing truck drivers for a check of their equipment. Inspectors checked for emissions control labels, exhaust smoke and other signs of excess emissions. CARB's Public Information Officer Karen Caesar said the average person may not always notice, but 2010 or equivalent engines reduce emissions by 85 percent when compared to 2000 engines. "Diesel engines last forever and when you have truck 30 to 40 years on the road, it's not good for the air," she said. Trucks originating outside of California are also subject to the regulation, she added, so the agency is working hard to make sure truck operators everywhere are informed about the requirements and get into compliance. "These regulations are important and compliance is not optional," she said. "We have to let these folks know and give them the information." The latest checkpoints were one of dozens that go on throughout the year in California but the first this year for the Fresno area. Last August, similar teams were set up at 40 different weigh stations, distribution centers and other locations throughout the state to inspect some 4,000 trucks as part of the "Gear Up For Clean Trucks" campaign. From that effort, CARB noted a rate of 80 percent of trucks compliant with the regulation either through diesel soot filters or new and upgraded engines. When truck operators aren't in compliance, penalties start at a minimum of $1,000 per violation per month and will increase significantly over time. Non-compliance can also result in a registration block by the Department of Motor Vehicles on the truck or having the vehicle impounded by the CHP until it in compliance. Small fleets with three or fewer trucks can delay compliance until January 2014 by reporting their truck information to CARB. More information on how to comply with the Truck and Bus regulation as well as incentive money is available at ARB's TruckStop website at arb.ca.gov/truckstop or by calling 1-866-6-DIESEL (634-3735). California is home to 200,000 trucking business and 450,000 registered heavy duty diesel trucks. Trucks and buses account for about 32 percent of the statewide emissions of NOx and about 40 percent of diesel PM emissions.
URL to original article: http://thebusinessjournal.com/news/energy-and-environment/5120-truck-emissions-inspectors-scour-fresno-area
For further information on Fresno Real Estate check: http://www.londonproperties.com
Foreclosures fall 17.8% from year ago levels
Source: Housingwire
By Kerri Ann Panchuk
Foreclosure activity plummeted 17.8% year-over-year in January with only 61,000 foreclosures completed last month, down from 75,000 a year earlier, CoreLogic reported. The Irvine, Calif.-based real estate analytics firm also noted that foreclosures from December to January did mange to edge up 10.5% from 56,000 in December. Both months are still well above the normal foreclosure rate of 21,000 foreclosures per month, an average established in the six-year period running from 2000 through 2006. The U.S. currently has 1.2 million homes in some stage of foreclosure, down from 1.5 million in January of 2012. "The backlog of distressed assets continues to fade as the foreclosure inventory has fallen to a level not seen since mid-2009, with less than 3% of all mortgages in foreclosure," said Mark Fleming, chief economist for CoreLogic. "The improvement is widespread as only six states and 13 of the largest 100 metro areas had an increase in the foreclosure rate year over year." The five states with the most completed foreclosures for the 12 months ending January 2013 included California with 96,000 foreclosures; Michigan (74,000); Texas (59,000); and Georgia (50,000). All of these states made up nearly half of all completed foreclosures. The states with the fewest completed foreclosures for the 12 months ending in January included the District of Columbia, Hawaii, North Dakota, Maine and West Virginia.
URL to original article: http://www.housingwire.com/news/2013/02/28/foreclosures-fall-178-year-ago-levels
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Kerri Ann Panchuk
Foreclosure activity plummeted 17.8% year-over-year in January with only 61,000 foreclosures completed last month, down from 75,000 a year earlier, CoreLogic reported. The Irvine, Calif.-based real estate analytics firm also noted that foreclosures from December to January did mange to edge up 10.5% from 56,000 in December. Both months are still well above the normal foreclosure rate of 21,000 foreclosures per month, an average established in the six-year period running from 2000 through 2006. The U.S. currently has 1.2 million homes in some stage of foreclosure, down from 1.5 million in January of 2012. "The backlog of distressed assets continues to fade as the foreclosure inventory has fallen to a level not seen since mid-2009, with less than 3% of all mortgages in foreclosure," said Mark Fleming, chief economist for CoreLogic. "The improvement is widespread as only six states and 13 of the largest 100 metro areas had an increase in the foreclosure rate year over year." The five states with the most completed foreclosures for the 12 months ending January 2013 included California with 96,000 foreclosures; Michigan (74,000); Texas (59,000); and Georgia (50,000). All of these states made up nearly half of all completed foreclosures. The states with the fewest completed foreclosures for the 12 months ending in January included the District of Columbia, Hawaii, North Dakota, Maine and West Virginia.
URL to original article: http://www.housingwire.com/news/2013/02/28/foreclosures-fall-178-year-ago-levels
For further information on Fresno Real Estate check: http://www.londonproperties.com
Wednesday, February 27, 2013
Pending home sales hit two-year high: NAR
Source: Housingwire
By Christina Mlynski
Pending home sales rose in January and continued a 21-month trend of growing from year ago levels, the National Association of Realtors said. The company's latest pending home sales index suggests the housing recovery is gaining momentum. The January NAR Pending Home Sales Index hit its highest reading since April 2010 when the index reached 110.9. Aside from spikes induced by homebuyer tax credits in 2010, the last index high before 2010 occurred in February 2007 when NAR's index reached 107.9, the association said. The NAR pending home sales index – which measure contract signings on homes – increased 4.5% to 105.9 in January, compared to a score of 101.3 in December. That index score is also still 9.5% above January 2012 when the index hovered at 96.7. The data reflects only signed contracts, not actual property closings. Inventory is the key to this year’s housing market, said Lawrence Yun, NAR’s chief economist. "Favorable affordability conditions and job growth have unleashed a pent-up demand. Most areas are drawing down housing inventory, which has shifted the supply and demand balance to sellers in much of the country," Yun said. He added, "It’s also why we’re experiencing the strongest price growth in more than seven years." Furthermore, the association stated there were healthy monthly gains in all regions accept for the West, which continues to struggle with limited inventory. On a regional basis, pending home sales rose the most in the Northeast, increasing 8.2%, a significant uptick compared to December when pending home sales fell 5.4%. In the Midwest, the pending home sales index rose 4.5% from December to January and is 17.7% above year ago levels. The South saw a 5.9% increase in pending home sales, while the West index of pending home sales edged up 0.1%. "Over the near term, rising contract activity means higher home sales, but total sales for the year are expected to rise less than in 2012, while home prices are projected to rise more strongly because of inventory shortages," Yun said.
URL to original article: http://www.housingwire.com/news/2013/02/27/pending-home-sales-hit-two-year-high-nar
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Christina Mlynski
Pending home sales rose in January and continued a 21-month trend of growing from year ago levels, the National Association of Realtors said. The company's latest pending home sales index suggests the housing recovery is gaining momentum. The January NAR Pending Home Sales Index hit its highest reading since April 2010 when the index reached 110.9. Aside from spikes induced by homebuyer tax credits in 2010, the last index high before 2010 occurred in February 2007 when NAR's index reached 107.9, the association said. The NAR pending home sales index – which measure contract signings on homes – increased 4.5% to 105.9 in January, compared to a score of 101.3 in December. That index score is also still 9.5% above January 2012 when the index hovered at 96.7. The data reflects only signed contracts, not actual property closings. Inventory is the key to this year’s housing market, said Lawrence Yun, NAR’s chief economist. "Favorable affordability conditions and job growth have unleashed a pent-up demand. Most areas are drawing down housing inventory, which has shifted the supply and demand balance to sellers in much of the country," Yun said. He added, "It’s also why we’re experiencing the strongest price growth in more than seven years." Furthermore, the association stated there were healthy monthly gains in all regions accept for the West, which continues to struggle with limited inventory. On a regional basis, pending home sales rose the most in the Northeast, increasing 8.2%, a significant uptick compared to December when pending home sales fell 5.4%. In the Midwest, the pending home sales index rose 4.5% from December to January and is 17.7% above year ago levels. The South saw a 5.9% increase in pending home sales, while the West index of pending home sales edged up 0.1%. "Over the near term, rising contract activity means higher home sales, but total sales for the year are expected to rise less than in 2012, while home prices are projected to rise more strongly because of inventory shortages," Yun said.
URL to original article: http://www.housingwire.com/news/2013/02/27/pending-home-sales-hit-two-year-high-nar
For further information on Fresno Real Estate check: http://www.londonproperties.com
Lack of inventory hinders top real estate markets
Source: Housingwire
By Megan Hopkins
Higher priced homes are typically a strong indicator of the overall health of a real estate market and, according to Pro Teck Valuation Services, these homes are leading the recovery currently. "Many of the interior U.S. markets exhibit low volatility and are relatively easy to forecast. Others on the East and West Coast show more volatility due to the combination of constrained supply and generally rising demand," said Tom O’Grady, CEO of Pro Teck. "Home prices in these markets rise and fall faster than in markets where new supply can be more easily added such as the more open Midwest U.S." Pro Teck tracks a number of market indicators to predict where home prices are going in their Home Value Forecast. Partnering with Collateral Analytics for this report, Pro Teck studies the single-family price per square foot for different priced markets in the Los Angeles County areas of Manhattan Beach, Lancaster and Burbank from 1970 to 2012. These markets specifically were chosen because they represent a range of low, average and high-priced cities. This allows for a clear pattern to be established over the years, revealing the higher-priced cities taking the lead, followed by the average and then the low-priced ones. "Most newsworthy is the latest up move in the Manhattan Beach market which has pushed prices to all-time high levels," said Michael Sklarz, principal of collateral analytics to the Home Value Forecast. "This should be viewed as confirmation that the Los Angeles county real estate market is in the early stages of a new upward-cycle in home prices." The HVF also tracks the top 10 best and worst performing metros based on single-family home markets in the top 200 core based statistical areas on a monthly basis. The metros are chosen based on sales/listing activity and prices, months of remaining inventory, days on market, sold-to-list price ratio and foreclosure and REO activity. "Three of the top ranked markets are in Southern California while another two are in Massachusetts. A new entrant to the Top 10 list this month is Indianapolis-Carmel," added Sklarz. Big markets such as Phoenix and Sacramento, which led the lists towards the end of 2012, no longer make the list due to their year-over-year sales counts being down. This is due to the lack of inventory rather than a decrease in demand, Sklarz noted. "The bottom-ranked metros also represent an interesting mix with two being in the upstate New York area and two in Louisiana with higher months of remaining housing inventory."
URL to original article: http://www.housingwire.com/news/2013/02/27/lack-inventory-hinders-top-real-estate-markets
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Megan Hopkins
Higher priced homes are typically a strong indicator of the overall health of a real estate market and, according to Pro Teck Valuation Services, these homes are leading the recovery currently. "Many of the interior U.S. markets exhibit low volatility and are relatively easy to forecast. Others on the East and West Coast show more volatility due to the combination of constrained supply and generally rising demand," said Tom O’Grady, CEO of Pro Teck. "Home prices in these markets rise and fall faster than in markets where new supply can be more easily added such as the more open Midwest U.S." Pro Teck tracks a number of market indicators to predict where home prices are going in their Home Value Forecast. Partnering with Collateral Analytics for this report, Pro Teck studies the single-family price per square foot for different priced markets in the Los Angeles County areas of Manhattan Beach, Lancaster and Burbank from 1970 to 2012. These markets specifically were chosen because they represent a range of low, average and high-priced cities. This allows for a clear pattern to be established over the years, revealing the higher-priced cities taking the lead, followed by the average and then the low-priced ones. "Most newsworthy is the latest up move in the Manhattan Beach market which has pushed prices to all-time high levels," said Michael Sklarz, principal of collateral analytics to the Home Value Forecast. "This should be viewed as confirmation that the Los Angeles county real estate market is in the early stages of a new upward-cycle in home prices." The HVF also tracks the top 10 best and worst performing metros based on single-family home markets in the top 200 core based statistical areas on a monthly basis. The metros are chosen based on sales/listing activity and prices, months of remaining inventory, days on market, sold-to-list price ratio and foreclosure and REO activity. "Three of the top ranked markets are in Southern California while another two are in Massachusetts. A new entrant to the Top 10 list this month is Indianapolis-Carmel," added Sklarz. Big markets such as Phoenix and Sacramento, which led the lists towards the end of 2012, no longer make the list due to their year-over-year sales counts being down. This is due to the lack of inventory rather than a decrease in demand, Sklarz noted. "The bottom-ranked metros also represent an interesting mix with two being in the upstate New York area and two in Louisiana with higher months of remaining housing inventory."
URL to original article: http://www.housingwire.com/news/2013/02/27/lack-inventory-hinders-top-real-estate-markets
For further information on Fresno Real Estate check: http://www.londonproperties.com
Tuesday, February 19, 2013
Contractor violations continue in Fresno, Clovis
Source: The Business Journal
One man was arrested and 15 others cited on various charges including operating without a contractor’s license in a Feb. 13-14 undercover sting operation by the Contractors State License Board in partnership with the Clovis Police Department at a home in Clovis. Investigators used advertisements from Craigslist.org to schedule home improvement bids for painting, landscaping, floor covering and tree maintenance. All 16 of the construction workers that arrived were cited for contracting without a license. All home improvement jobs were valued at $500 or more, which must be conducted by a company or person with a contractor license issued by the Contractors State License Board. Eleven of the 16 workers were cited for violating contractor-advertising laws, which require the contractor license number to be included in all forms of advertising. Clovis Police cited seven suspects for driving without a valid license and six suspect vehicles were impounded and towed from the scene. The man arrested was Michael Brian Dueck of M.D. Home Services in Clovis. The arrest was for a DUI warrant, said Rick Lopes, chief of public affairs for Contractors State License Board. Dueck was also cited for lacking a contractor’s license. The others cited on suspicion of operating without a license were Russell Gonzalez of Fresno, Dennis Lee Anderson of Fresno, Luis Sandoval Almanza of L.A. Painting & Luis The Painter of Fresno, Efrain Rubio of ER Painting in Fresno, Gregory Leonard Smith of Smith Brothers Painting in Clovis, Mario Garcia of We Do It All Tree Service in Fresno, Larry Joseph Stancato of Larry’s Handyman Service in Fresno, Terry Ronald Moser of Clovis, Mark Kevin Phelps of Discount Painter in Fresno, Sergio Leyva Cruz of Sergio Cruz’ Home Maintenance in Fresno, Mariano Tapia Dorantes of Tapia’s Lawn Service in Fresno, Esgar Yeraldo Arreola of Esgar Lawn Service in Fresno, Roberto Martinez of handyman Service in Fresno, Jose Amilcar Rivas Pacas of Jose Rivas El Amigo Landscaping in Fresno and Matthew James Lloyd Comegys of Matt’s Handyman Service in Fresno.
URL to original article: http://www.thebusinessjournal.com/news/construction/5031-contractor-violations-continue-in-fresno-clovis
For further information on Fresno Real Estate check: http://www.londonproperties.com
One man was arrested and 15 others cited on various charges including operating without a contractor’s license in a Feb. 13-14 undercover sting operation by the Contractors State License Board in partnership with the Clovis Police Department at a home in Clovis. Investigators used advertisements from Craigslist.org to schedule home improvement bids for painting, landscaping, floor covering and tree maintenance. All 16 of the construction workers that arrived were cited for contracting without a license. All home improvement jobs were valued at $500 or more, which must be conducted by a company or person with a contractor license issued by the Contractors State License Board. Eleven of the 16 workers were cited for violating contractor-advertising laws, which require the contractor license number to be included in all forms of advertising. Clovis Police cited seven suspects for driving without a valid license and six suspect vehicles were impounded and towed from the scene. The man arrested was Michael Brian Dueck of M.D. Home Services in Clovis. The arrest was for a DUI warrant, said Rick Lopes, chief of public affairs for Contractors State License Board. Dueck was also cited for lacking a contractor’s license. The others cited on suspicion of operating without a license were Russell Gonzalez of Fresno, Dennis Lee Anderson of Fresno, Luis Sandoval Almanza of L.A. Painting & Luis The Painter of Fresno, Efrain Rubio of ER Painting in Fresno, Gregory Leonard Smith of Smith Brothers Painting in Clovis, Mario Garcia of We Do It All Tree Service in Fresno, Larry Joseph Stancato of Larry’s Handyman Service in Fresno, Terry Ronald Moser of Clovis, Mark Kevin Phelps of Discount Painter in Fresno, Sergio Leyva Cruz of Sergio Cruz’ Home Maintenance in Fresno, Mariano Tapia Dorantes of Tapia’s Lawn Service in Fresno, Esgar Yeraldo Arreola of Esgar Lawn Service in Fresno, Roberto Martinez of handyman Service in Fresno, Jose Amilcar Rivas Pacas of Jose Rivas El Amigo Landscaping in Fresno and Matthew James Lloyd Comegys of Matt’s Handyman Service in Fresno.
URL to original article: http://www.thebusinessjournal.com/news/construction/5031-contractor-violations-continue-in-fresno-clovis
For further information on Fresno Real Estate check: http://www.londonproperties.com
Monday, February 18, 2013
Fresno luxury auto dealers all over $30K price point
Source: The Business Journal
Written by Clay Moffitt
Even if momentarily, German luxury automotive manufacturer Mercedes-Benz was able to draw the attention away from the drama unfolding on the gridiron with its Super Bowl ad introducing its new CLA model and its price tag starting at $29,999. Mercedes is the latest in a line of luxury car manufacturers trying to tap into the younger working professionals’ market with a price point in the $30,000-35,000 range. Traditionally, luxury car buyers are more experienced and settled within their careers. But with the baby-boomers creeping up in age, manufacturers have taken note of the uncomfortable reality of a generation of that size getting older. “An aging demographic is very scary to a brand,” confirmed Caren Myers, general manager of Fresno Lexus. Lexus, Mercedes, BMW, Volvo, Audi and Cadillac are among the manufacturers who have or will soon release models ranging near that $30,000 price point to bring down the average age of their consumer base. “It’s a way to get that 25 to 30-year-old customer in the door, and as they move on and grow in their career, they will get into other models,” said Yrma Rico with Weber BMW. The Mercedes-Benz CLA won’t be on sales lots until late summer or early fall. Scott Biehl, the owner, dealer and operator of Mercedes-Benz of Fresno, doesn’t expect the model to be limited to just 30-something consumers. “The CLA will appeal to the younger buyer but it will also appeal to anyone that wants the safety and luxury of a Mercedes-Benz at that price point,” Biehl said. Rico takes a unique view that the other luxury car companies are not only trying to capture a younger demographic, but “they’re going after the BMW buyer.” According to Rico, BMW’s sporty design and high performance vehicles have always helped the company capture a younger consumer base than the other luxury manufacturers. However, the competition isn’t forcing Rico to panic. “It’s always good to have a little competition,” Rico said. “The consumer will demand the manufacturer to produce better product for less money.” BMW offers its 1 series, starting at $32,095, to compete in the group. During the downturn in the economy, luxury dealerships lost a lot of entry-level buyers as they turned to purchasing less luxurious makes. “We are trying to lure them back,” Myers said. “We want that younger, more youthful buyer. We’ve changed the design of cars and made other changes to appeal to this age group.” Lexus has embraced the new price point with its own niche. Of all the luxury vehicles in the $30,000-35,000 range, the Lexus CT is the only hybrid of the group, capitalizing on the more environmentally conscious mindset of the younger buyers. “Today’s children are being exposed to all of the important parts of environment. I definitely think there will be a trend there,” Myers said. Myers says the age of the buyers of the CT range from fresh out of college to 60 years old and older. Last year Fresno Lexus sold 41 CTs, which accounted for approximately 7 percent of the dealership’s new car sales for the year. Biehl expects his dealership to sell more used Mercedes vehicles because customers will come with a $30,000 price tag in mind, but not necessarily with their heart set on the CLA. “They’ll decide if they want a CLA or they may want a certified pre-owned Mercedes,” Biehl said. Although the dealerships anticipate increased sales by the lower-priced entry-level models, they will not generate large profits directly by each $30,000 car sold. The profit margins will come from the parts and service that go along with each vehicle, in addition to the buyer loyalty expected by introducing their brands at a younger age.
URL to original article: http://www.thebusinessjournal.com/news/retail/5007-fresno-luxury-auto-dealers-all-over-30k-price-point
For further information on Fresno Real Estate check: http://www.londonproperties.com
Written by Clay Moffitt
Even if momentarily, German luxury automotive manufacturer Mercedes-Benz was able to draw the attention away from the drama unfolding on the gridiron with its Super Bowl ad introducing its new CLA model and its price tag starting at $29,999. Mercedes is the latest in a line of luxury car manufacturers trying to tap into the younger working professionals’ market with a price point in the $30,000-35,000 range. Traditionally, luxury car buyers are more experienced and settled within their careers. But with the baby-boomers creeping up in age, manufacturers have taken note of the uncomfortable reality of a generation of that size getting older. “An aging demographic is very scary to a brand,” confirmed Caren Myers, general manager of Fresno Lexus. Lexus, Mercedes, BMW, Volvo, Audi and Cadillac are among the manufacturers who have or will soon release models ranging near that $30,000 price point to bring down the average age of their consumer base. “It’s a way to get that 25 to 30-year-old customer in the door, and as they move on and grow in their career, they will get into other models,” said Yrma Rico with Weber BMW. The Mercedes-Benz CLA won’t be on sales lots until late summer or early fall. Scott Biehl, the owner, dealer and operator of Mercedes-Benz of Fresno, doesn’t expect the model to be limited to just 30-something consumers. “The CLA will appeal to the younger buyer but it will also appeal to anyone that wants the safety and luxury of a Mercedes-Benz at that price point,” Biehl said. Rico takes a unique view that the other luxury car companies are not only trying to capture a younger demographic, but “they’re going after the BMW buyer.” According to Rico, BMW’s sporty design and high performance vehicles have always helped the company capture a younger consumer base than the other luxury manufacturers. However, the competition isn’t forcing Rico to panic. “It’s always good to have a little competition,” Rico said. “The consumer will demand the manufacturer to produce better product for less money.” BMW offers its 1 series, starting at $32,095, to compete in the group. During the downturn in the economy, luxury dealerships lost a lot of entry-level buyers as they turned to purchasing less luxurious makes. “We are trying to lure them back,” Myers said. “We want that younger, more youthful buyer. We’ve changed the design of cars and made other changes to appeal to this age group.” Lexus has embraced the new price point with its own niche. Of all the luxury vehicles in the $30,000-35,000 range, the Lexus CT is the only hybrid of the group, capitalizing on the more environmentally conscious mindset of the younger buyers. “Today’s children are being exposed to all of the important parts of environment. I definitely think there will be a trend there,” Myers said. Myers says the age of the buyers of the CT range from fresh out of college to 60 years old and older. Last year Fresno Lexus sold 41 CTs, which accounted for approximately 7 percent of the dealership’s new car sales for the year. Biehl expects his dealership to sell more used Mercedes vehicles because customers will come with a $30,000 price tag in mind, but not necessarily with their heart set on the CLA. “They’ll decide if they want a CLA or they may want a certified pre-owned Mercedes,” Biehl said. Although the dealerships anticipate increased sales by the lower-priced entry-level models, they will not generate large profits directly by each $30,000 car sold. The profit margins will come from the parts and service that go along with each vehicle, in addition to the buyer loyalty expected by introducing their brands at a younger age.
URL to original article: http://www.thebusinessjournal.com/news/retail/5007-fresno-luxury-auto-dealers-all-over-30k-price-point
For further information on Fresno Real Estate check: http://www.londonproperties.com
Foreclosure discounts no longer as steep
Source: Housingwire
By Kerri Ann Panchuk
During the peak of the mortgage crisis, foreclosed homes sold at a 25% discount on average, but the market is stabilizing and the price differentiation between a home’s foreclosed valued and original market value is beginning to narrow, FNC reported. The real estate analytics firm released a Foreclosure Market Report Monday, saying home prices are rising in many metro areas while foreclosure prices are starting to bottom out, creating some price stability. "The fact that we are seeing a combination of rising home prices and a bottoming out of foreclosure prices is a very good sign the housing recovery is taking hold," said Dr. Yangling Mayer, FNC Senior Research Economist. "This is the very first time in the long housing recession that the two are happening at the same time." By the fourth quarter of 2012, the average foreclosure discount, which is a comparison between a foreclosed home's market value and its final sales price, had dropped to 12.2%, compared to 25% during the peak of the downturn. Single-family REO and foreclosure sales made up 18.1% of the market in the fourth quarter of 2012, down from 26.5% in the first quarter of the same year, FNC said. In addition, the median foreclosure price stands at $93,000, while the median price for a non-distressed sale is hovering at $183,500, according to FNC. Price discounts are still more dramatic at the lower end of the housing market, with discounts of roughly 18.4% for low-tier properties in the latest FNC report. Michigan remains foreclosure dominant, with 56% of homes sold in the fourth quarter of 2012 classified as foreclosure sales. The hardest hit states of Arizona (14.3%), California (19.8%), Florida (20.5%) and Nevada (13%) maintain foreclosure sale rates of roughly 13% to 20.5%, with Florida recording the most distressed property sales. FNC notes that the Midwest cities of Detroit, Chicago, Cleveland and St. Louis still have the largest concentration of foreclosure sales overall.
URL to original article: http://www.housingwire.com/news/2013/02/18/foreclosure-discounts-no-longer-steep
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Kerri Ann Panchuk
During the peak of the mortgage crisis, foreclosed homes sold at a 25% discount on average, but the market is stabilizing and the price differentiation between a home’s foreclosed valued and original market value is beginning to narrow, FNC reported. The real estate analytics firm released a Foreclosure Market Report Monday, saying home prices are rising in many metro areas while foreclosure prices are starting to bottom out, creating some price stability. "The fact that we are seeing a combination of rising home prices and a bottoming out of foreclosure prices is a very good sign the housing recovery is taking hold," said Dr. Yangling Mayer, FNC Senior Research Economist. "This is the very first time in the long housing recession that the two are happening at the same time." By the fourth quarter of 2012, the average foreclosure discount, which is a comparison between a foreclosed home's market value and its final sales price, had dropped to 12.2%, compared to 25% during the peak of the downturn. Single-family REO and foreclosure sales made up 18.1% of the market in the fourth quarter of 2012, down from 26.5% in the first quarter of the same year, FNC said. In addition, the median foreclosure price stands at $93,000, while the median price for a non-distressed sale is hovering at $183,500, according to FNC. Price discounts are still more dramatic at the lower end of the housing market, with discounts of roughly 18.4% for low-tier properties in the latest FNC report. Michigan remains foreclosure dominant, with 56% of homes sold in the fourth quarter of 2012 classified as foreclosure sales. The hardest hit states of Arizona (14.3%), California (19.8%), Florida (20.5%) and Nevada (13%) maintain foreclosure sale rates of roughly 13% to 20.5%, with Florida recording the most distressed property sales. FNC notes that the Midwest cities of Detroit, Chicago, Cleveland and St. Louis still have the largest concentration of foreclosure sales overall.
URL to original article: http://www.housingwire.com/news/2013/02/18/foreclosure-discounts-no-longer-steep
For further information on Fresno Real Estate check: http://www.londonproperties.com
Friday, February 15, 2013
Housing recovery momentum continues to build
Souce: Housingwire
By Megan Hopkins
Momentum continued to grow in a snowball effect manner, with prices rising to a two-year high in December, according to the latest FNC report. Battling a deceleration in economic growth, the housing recovery maintained a steady pace, shooting FNC’s residential price index up 5.4% year to date. The recovery of the underlying property values is strongly influenced by a stabilizing foreclosure market. While many markets that were hardest hit still face challenges, there are signs that foreclosure prices have bottomed out. As a percentage of total home sales, foreclosures were 17.8% in December, down from 24.0% a year ago. The FNC 100-MSA, which is based on recorded sales of non-distressed properties in the 100 largest metropolitan areas, revealed that December home prices remained relatively unchanged from the month before, but still rose 4.9% on a year-over-year basis. The 30-MSA and 10-MSA composite indices paralleled the 100-MSA momentum, relatively unchanged from November and up 5.8% from December 2011. Momentum continued to grow in a snowball effect manner, with prices rising to a two-year high in December, according to the latest FNC report. Battling a deceleration in economic growth, the housing recovery maintained a steady pace, shooting FNC’s residential price index up 5.4% year to date. The recovery of the underlying property values is strongly influenced by a stabilizing foreclosure market. While many markets that were hardest hit still face challenges, there are signs that foreclosure prices have bottomed out. As a percentage of total home sales, foreclosures were 17.8% in December, down from 24.0% a year ago. The FNC 100-MSA, which is based on recorded sales of non-distressed properties in the 100 largest metropolitan areas, revealed that December home prices remained relatively unchanged from the month before, but still rose 4.9% on a year-over-year basis. The 30-MSA and 10-MSA composite indices paralleled the 100-MSA momentum, relatively unchanged from November and up 5.8% from December 2011.
URL to original article: http://www.housingwire.com/news/2013/02/15/housing-recovery-momentum-continues-build
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Megan Hopkins
Momentum continued to grow in a snowball effect manner, with prices rising to a two-year high in December, according to the latest FNC report. Battling a deceleration in economic growth, the housing recovery maintained a steady pace, shooting FNC’s residential price index up 5.4% year to date. The recovery of the underlying property values is strongly influenced by a stabilizing foreclosure market. While many markets that were hardest hit still face challenges, there are signs that foreclosure prices have bottomed out. As a percentage of total home sales, foreclosures were 17.8% in December, down from 24.0% a year ago. The FNC 100-MSA, which is based on recorded sales of non-distressed properties in the 100 largest metropolitan areas, revealed that December home prices remained relatively unchanged from the month before, but still rose 4.9% on a year-over-year basis. The 30-MSA and 10-MSA composite indices paralleled the 100-MSA momentum, relatively unchanged from November and up 5.8% from December 2011. Momentum continued to grow in a snowball effect manner, with prices rising to a two-year high in December, according to the latest FNC report. Battling a deceleration in economic growth, the housing recovery maintained a steady pace, shooting FNC’s residential price index up 5.4% year to date. The recovery of the underlying property values is strongly influenced by a stabilizing foreclosure market. While many markets that were hardest hit still face challenges, there are signs that foreclosure prices have bottomed out. As a percentage of total home sales, foreclosures were 17.8% in December, down from 24.0% a year ago. The FNC 100-MSA, which is based on recorded sales of non-distressed properties in the 100 largest metropolitan areas, revealed that December home prices remained relatively unchanged from the month before, but still rose 4.9% on a year-over-year basis. The 30-MSA and 10-MSA composite indices paralleled the 100-MSA momentum, relatively unchanged from November and up 5.8% from December 2011.
URL to original article: http://www.housingwire.com/news/2013/02/15/housing-recovery-momentum-continues-build
For further information on Fresno Real Estate check: http://www.londonproperties.com
California falling foreclosures may be a mirage in the desert
Source: Housingwire
By Kerri Ann Panchuk
The second month of 2013 brought news that non-judicial foreclosure filings fell significantly in California. This development may be due to the changing legal landscape in the state, rather than a sign that all distressed homeowners in the state are eventually going to find a desirable solution to their troubles or escape foreclosure altogether, according to real estate industry data. RealtyTrac on Thursday noted that the state of California had 18,093 properties facing a non-judicial foreclosure filing in January, down 39% from December and a 65% drop from a year earlier. This seems like a significant and decidedly positive change for the hard-hit state, but it’s not the full story. RealtyTrac does not report judicial filings in California. Daren Blomquist, vice president of RealtyTrac, said those numbers for January include only non-judicial foreclosures, which doesn’t rule out the possibility that banks fearing new California foreclosure laws are gearing up to file in state courts instead. January brought the enactment of the California Homeowner Bill of Rights, which created new state bans on dual-tracking and a private right of action that gives homeowners a chance to challenge various elements of the non-judicial foreclosure process in courts. Foreclosure attorneys and economists warned as early as September of last year that California would become a de facto judicial foreclosure state, prompting fewer banks to choose the non-judicial foreclosure process and instead opt for a judicial foreclosure that could help them gain protections from legal risks tied to the new Bill of Rights. Daren Blomquist, vice president for RealtyTrac, forecasted a possible downshift in California foreclosure filings late last year. When his firm released the latest data he wrote, "The U.S. foreclosure landscape in January was profoundly altered by the effects of new legislation that took effect in California on the first of the year," he said. "As a result, the downward foreclosure trend in California accelerated into hyper speed in January, decisively shifting the balance of power when it comes to the nation’s foreclosure activity." Consumer advocates that have pushed for a progressive solution to foreclosure issues applauded the resulting decline in California foreclosure activity in January. But they may be speaking too soon by assuming the Bill of Rights actually stopped, or even prevented, foreclosures. "The decrease in foreclosure starts in California, while welcome, is also an indictment of the past five years when banks failed to deal fairly with the hundreds of thousands of California families struggling to keep their homes," said Kevin Stein of the California Reinvestment Coalition. "The Homeowners Bill of Rights is a rare point of leverage to hold banks accountable to communities, and this data point indicates that it's finally starting to work." But the financial services industry predicted the Bill of Rights would actually cause non-judicial foreclosures to decline in California as opposed to ending the process outright. "The word on the street is that lenders are filing judicial foreclosures instead," said Blomquist. With this in mind, RealtyTrac is tracking judicial foreclosure activity separately. To date, the research firm has not discovered a substantial uptick in judicial foreclosure filings. But Blomquist says, "lenders don’t just turn on a dime in terms of how they are running their operations." Blomquist hasn’t ruled out the possibility that more judicial foreclosures could be waiting in the wings with lenders still transitioning from nonjudicial to judicial foreclosures. Blomquist points out that legislation and an onerous court decision in Oregon last summer stifled non-judicial foreclosure activity in the state until more attorneys switched to judicial foreclosure filings a few months later. The fact that California is not seeing more judicial foreclosure filings as of yet does not rule out the possibility. "It is reasonable to think it would take a month or two before banks ramp up judicial foreclosure filings," Blomquist concluded.
URL to original article: http://www.housingwire.com/news/2013/02/15/california-falling-foreclosures-may-be-mirage-desert
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Kerri Ann Panchuk
The second month of 2013 brought news that non-judicial foreclosure filings fell significantly in California. This development may be due to the changing legal landscape in the state, rather than a sign that all distressed homeowners in the state are eventually going to find a desirable solution to their troubles or escape foreclosure altogether, according to real estate industry data. RealtyTrac on Thursday noted that the state of California had 18,093 properties facing a non-judicial foreclosure filing in January, down 39% from December and a 65% drop from a year earlier. This seems like a significant and decidedly positive change for the hard-hit state, but it’s not the full story. RealtyTrac does not report judicial filings in California. Daren Blomquist, vice president of RealtyTrac, said those numbers for January include only non-judicial foreclosures, which doesn’t rule out the possibility that banks fearing new California foreclosure laws are gearing up to file in state courts instead. January brought the enactment of the California Homeowner Bill of Rights, which created new state bans on dual-tracking and a private right of action that gives homeowners a chance to challenge various elements of the non-judicial foreclosure process in courts. Foreclosure attorneys and economists warned as early as September of last year that California would become a de facto judicial foreclosure state, prompting fewer banks to choose the non-judicial foreclosure process and instead opt for a judicial foreclosure that could help them gain protections from legal risks tied to the new Bill of Rights. Daren Blomquist, vice president for RealtyTrac, forecasted a possible downshift in California foreclosure filings late last year. When his firm released the latest data he wrote, "The U.S. foreclosure landscape in January was profoundly altered by the effects of new legislation that took effect in California on the first of the year," he said. "As a result, the downward foreclosure trend in California accelerated into hyper speed in January, decisively shifting the balance of power when it comes to the nation’s foreclosure activity." Consumer advocates that have pushed for a progressive solution to foreclosure issues applauded the resulting decline in California foreclosure activity in January. But they may be speaking too soon by assuming the Bill of Rights actually stopped, or even prevented, foreclosures. "The decrease in foreclosure starts in California, while welcome, is also an indictment of the past five years when banks failed to deal fairly with the hundreds of thousands of California families struggling to keep their homes," said Kevin Stein of the California Reinvestment Coalition. "The Homeowners Bill of Rights is a rare point of leverage to hold banks accountable to communities, and this data point indicates that it's finally starting to work." But the financial services industry predicted the Bill of Rights would actually cause non-judicial foreclosures to decline in California as opposed to ending the process outright. "The word on the street is that lenders are filing judicial foreclosures instead," said Blomquist. With this in mind, RealtyTrac is tracking judicial foreclosure activity separately. To date, the research firm has not discovered a substantial uptick in judicial foreclosure filings. But Blomquist says, "lenders don’t just turn on a dime in terms of how they are running their operations." Blomquist hasn’t ruled out the possibility that more judicial foreclosures could be waiting in the wings with lenders still transitioning from nonjudicial to judicial foreclosures. Blomquist points out that legislation and an onerous court decision in Oregon last summer stifled non-judicial foreclosure activity in the state until more attorneys switched to judicial foreclosure filings a few months later. The fact that California is not seeing more judicial foreclosure filings as of yet does not rule out the possibility. "It is reasonable to think it would take a month or two before banks ramp up judicial foreclosure filings," Blomquist concluded.
URL to original article: http://www.housingwire.com/news/2013/02/15/california-falling-foreclosures-may-be-mirage-desert
For further information on Fresno Real Estate check: http://www.londonproperties.com
Thursday, February 14, 2013
Donovan: Sequestration could devastate Fed housing programs
Source: Housingwire
By Kerri Ann Panchuk
Automatic government spending cuts could result in 75,000 fewer households receiving foreclosure-prevention aid along with rental and counseling services through the Department of Housing and Urban Development. Shaun Donovan, HUD Secretary, sent that warning to lawmakers Thursday when discussing the impact sequestration could have on homeowners during a Senate Appropriations Committee. It’s not just foreclosure counseling and prevention programs that would feel the impact of automatic cuts. Another 125,000 individuals or families could lose assistance offered through the Housing Choice Voucher program, putting more people at risk of becoming homeless, Donovan told the panel. The HCV program currently provides support to families who are renting in private apartment units. Donovan added that sequestration cuts could cause more than 100,000 formerly homeless Americans, including veterans, to be removed from their current residences or emergency housing programs. "Much of this damage will be done through cuts to HUD’s Continuum of Care programs, under which formerly homeless families and individuals are quickly re-housed and given other assistance to move them towards self-sufficiency," he explained. "In addition, the sequestration cuts would eliminate some of the key funding for the nation’s shelter system for the homeless provided by the Emergency Solutions Grants (ESG) program." HUD programs related to home safety and rehabilitation also would take a hit, Donovan said. About 2,100 housing units for low-income families would no longer have funding available through the Home Investment Partnerships program. "These cuts will have an even broader effect on local economies, particularly because historically, every dollar of HOME funding is leveraged with almost four dollars of other governmental or private investment for the production or rehabilitation of affordable single or multi- family housing," Donovan said. "This will mean fewer jobs in and more harm to local construction and related industries."
URL to original article: http://www.housingwire.com/news/2013/02/14/donovan-sequestration-could-devastate-fed-housing-programs
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Kerri Ann Panchuk
Automatic government spending cuts could result in 75,000 fewer households receiving foreclosure-prevention aid along with rental and counseling services through the Department of Housing and Urban Development. Shaun Donovan, HUD Secretary, sent that warning to lawmakers Thursday when discussing the impact sequestration could have on homeowners during a Senate Appropriations Committee. It’s not just foreclosure counseling and prevention programs that would feel the impact of automatic cuts. Another 125,000 individuals or families could lose assistance offered through the Housing Choice Voucher program, putting more people at risk of becoming homeless, Donovan told the panel. The HCV program currently provides support to families who are renting in private apartment units. Donovan added that sequestration cuts could cause more than 100,000 formerly homeless Americans, including veterans, to be removed from their current residences or emergency housing programs. "Much of this damage will be done through cuts to HUD’s Continuum of Care programs, under which formerly homeless families and individuals are quickly re-housed and given other assistance to move them towards self-sufficiency," he explained. "In addition, the sequestration cuts would eliminate some of the key funding for the nation’s shelter system for the homeless provided by the Emergency Solutions Grants (ESG) program." HUD programs related to home safety and rehabilitation also would take a hit, Donovan said. About 2,100 housing units for low-income families would no longer have funding available through the Home Investment Partnerships program. "These cuts will have an even broader effect on local economies, particularly because historically, every dollar of HOME funding is leveraged with almost four dollars of other governmental or private investment for the production or rehabilitation of affordable single or multi- family housing," Donovan said. "This will mean fewer jobs in and more harm to local construction and related industries."
URL to original article: http://www.housingwire.com/news/2013/02/14/donovan-sequestration-could-devastate-fed-housing-programs
For further information on Fresno Real Estate check: http://www.londonproperties.com
Freddie Mac outlook: Housing activity remains stale
Source: Housingwire
By Megan Hopkins
Despite strong signs of recovery, the level of housing activity remains near historic lows, according to the February housing outlook by Freddie Mac. Reports of low home prices, low mortgage rates and modestly rising income indicate that there is room for sustainable growth in the year ahead. Additionally, residential-fixed investment made positive contributions to GDP growth for the first time since 2005, adding 0.4% to growth in the fourth quarter. "The macroeconomic recovery though 2011 helped to forestall further erosion in the depressed housing market. In return, housing is now 'showing some love' by contributing to economic growth, perhaps by adding close to 0.5 percentage points to 2013 GDP growth," vice president and chief economist Frank Nothaft of Freddie Mac said. Housing starts in 2013 are projected to increase to 950,000 units, a 22% increase from 2012. Looking even further ahead, Freddie Mac economists are forecasting another 26% in annual starts in 2013, bringing the total to about 1.2 million. As incomes continue to pick up, so will home prices. The housing price recovery should have a direct effect on sales, as homeowners who have been forced to wait are now able to get back into the market. Nothaft added, "Across the nation, most local housing markets have room for sustainable growth, particularly in home construction and sales. As the broader economy heals, expect to see more good news with house prices continuing their recent upward trend, and home sales and housing starts continuing to post strong growth rates."
URL to original article: http://www.housingwire.com/news/2013/02/14/freddie-mac-outlook-housing-activity-remains-stale
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Megan Hopkins
Despite strong signs of recovery, the level of housing activity remains near historic lows, according to the February housing outlook by Freddie Mac. Reports of low home prices, low mortgage rates and modestly rising income indicate that there is room for sustainable growth in the year ahead. Additionally, residential-fixed investment made positive contributions to GDP growth for the first time since 2005, adding 0.4% to growth in the fourth quarter. "The macroeconomic recovery though 2011 helped to forestall further erosion in the depressed housing market. In return, housing is now 'showing some love' by contributing to economic growth, perhaps by adding close to 0.5 percentage points to 2013 GDP growth," vice president and chief economist Frank Nothaft of Freddie Mac said. Housing starts in 2013 are projected to increase to 950,000 units, a 22% increase from 2012. Looking even further ahead, Freddie Mac economists are forecasting another 26% in annual starts in 2013, bringing the total to about 1.2 million. As incomes continue to pick up, so will home prices. The housing price recovery should have a direct effect on sales, as homeowners who have been forced to wait are now able to get back into the market. Nothaft added, "Across the nation, most local housing markets have room for sustainable growth, particularly in home construction and sales. As the broader economy heals, expect to see more good news with house prices continuing their recent upward trend, and home sales and housing starts continuing to post strong growth rates."
URL to original article: http://www.housingwire.com/news/2013/02/14/freddie-mac-outlook-housing-activity-remains-stale
For further information on Fresno Real Estate check: http://www.londonproperties.com
Wednesday, February 13, 2013
Report: Valley still in sluggish economic growth
Source: The Business Journal
The Fresno area is expected to continue along the path of the slow recovery, but at a slower pace than the rest of the state, according to a study released by the University of the Pacific Business Forecasting Center on Tuesday.
The February edition of the California & Metro Forecast projects the state’s job growth will increase by approximately 2 percent, while the Fresno Metropolitan Statistical Area will grow by 1.2 percent in 2013.
The unemployment rate is expected to drop to 14.5 percent this year, compared to 15.3 percent in 2012.
The study projects the construction and mining sector will have the most growth, with an expected increase of 9.3 percent in the first quarter of the year and 7 percent in the second quarter.
The area’s real personal income is expected to rise by 2.1 percent this year and 3 percent in 2014.
The Fresno area’s population as a whole is expected to grow by 1.2 percent this year and 1.3 percent next year.
The gross state product for California is expected to grow by 2.2 percent, which is on pace with the rest of the country.
“There is no evidence that the California economy is significantly outperforming the U.S. economy,” said Jeff Michael, director of the Business Forecasting Center, in a release.
URL to the original article: http://www.thebusinessjournal.com/news/economy/4944-report-valley-still-in-sluggish-economic-growth
For further information on Fresno Real Estate check: http://www.londonproperties.com
The Fresno area is expected to continue along the path of the slow recovery, but at a slower pace than the rest of the state, according to a study released by the University of the Pacific Business Forecasting Center on Tuesday.
The February edition of the California & Metro Forecast projects the state’s job growth will increase by approximately 2 percent, while the Fresno Metropolitan Statistical Area will grow by 1.2 percent in 2013.
The unemployment rate is expected to drop to 14.5 percent this year, compared to 15.3 percent in 2012.
The study projects the construction and mining sector will have the most growth, with an expected increase of 9.3 percent in the first quarter of the year and 7 percent in the second quarter.
The area’s real personal income is expected to rise by 2.1 percent this year and 3 percent in 2014.
The Fresno area’s population as a whole is expected to grow by 1.2 percent this year and 1.3 percent next year.
The gross state product for California is expected to grow by 2.2 percent, which is on pace with the rest of the country.
“There is no evidence that the California economy is significantly outperforming the U.S. economy,” said Jeff Michael, director of the Business Forecasting Center, in a release.
URL to the original article: http://www.thebusinessjournal.com/news/economy/4944-report-valley-still-in-sluggish-economic-growth
For further information on Fresno Real Estate check: http://www.londonproperties.com
Thursday, February 7, 2013
Postal Service to cut Saturday mail to trim costs
Source: The Business Journal
Written by PAULINE JELINEK, Associated Press
(AP) — Apparently trying an end-run around an unaccommodating Congress, the financially struggling U.S. Postal Service says it will stop delivering mail on Saturdays but continue to disburse packages six days a week. In an announcement scheduled for later Wednesday, the service is expected to say the Saturday mail cutback would begin in August and could save $2 billion annually. The move accentuates one of the agency's strong points — package delivery has increased by 14 percent since 2010, officials say, while the delivery of letters and other mail has declined with the increasing use of email and other Internet services. Under the new plan, mail would be delivered to homes and businesses only from Monday through Friday, but would still be delivered to post office boxes on Saturdays. Post offices now open on Saturdays would remain open on Saturdays. Over the past several years, the Postal Service has advocated shifting to a five-day delivery schedule for mail and packages — and it repeatedly but unsuccessfully appealed to Congress to approve the move. Though an independent agency, the service gets no tax dollars for its day-to-day operations but is subject to congressional control. It was not immediately clear how the service could eliminate Saturday mail without congressional approval. But the agency clearly thinks it has a majority of the American public on its side regarding the change. Material prepared for the Wednesday press conference by Patrick R. Donahoe, postmaster general and CEO, says Postal Service market research and other research has indicated that nearly 7 in 10 Americans support the switch to five-day delivery as a way for the Postal Service to reduce costs. "The Postal Service is advancing an important new approach to delivery that reflects the strong growth of our package business and responds to the financial realities resulting from America's changing mailing habits," Donahoe said in a statement prepared for the announcement. "We developed this approach by working with our customers to understand their delivery needs and by identifying creative ways to generate significant cost savings." But the president of the National Association of Letter Carriers, Fredric Rolando, said the end of Saturday mail delivery is "a disastrous idea that would have a profoundly negative effect on the Postal Service and on millions of customers," particularly businesses, rural communities, the elderly, the disabled and others who depend on Saturday delivery for commerce and communication. He said the maneuver by Donahoe to make the change "flouts the will of Congress, as expressed annually over the past 30 years in legislation that mandates six-day delivery." There was no immediate comment from lawmakers. But others agreed the Postal Service had little choice but to try. "If the Congress of the United States refuses to take action to save the U.S. Postal Service, then the Postal Service will have to take action on its own," said corporate communications expert James S. O'Rourke, professor of management at the University of Notre Dame. He said other action will be needed as well, such as shuttering smaller rural post offices and restructuring employee health care and pension costs. "It's unclear whether the USPS has the legislative authority to take such actions on its own, but the alternative is the status quo until it is completely cash starved," O'Rourke said in a statement. The Postal Service is making the announcement Wednesday, more than six months before the switch, to give residential and business customers time to plan and adjust, the statement said. "The American public understands the financial challenges of the Postal Service and supports these steps as a responsible and reasonable approach to improving our financial situation," Donahoe said. "The Postal Service has a responsibility to take the steps necessary to return to long-term financial stability and ensure the continued affordability of the U.S. Mail." He said the change would mean a combination of employee reassignment and attrition and is expected to achieve cost savings of approximately $2 billion annually when fully implemented. The agency in November reported an annual loss of a record $15.9 billion for the last budget year and forecast more red ink in 2013, capping a tumultuous year in which it was forced to default on billions in retiree health benefit prepayments to avert bankruptcy. The financial losses for the fiscal year ending Sept. 30 were more than triple the $5.1 billion loss in the previous year. Having reached its borrowing limit, the mail agency is operating with little cash on hand. The agency's biggest problem — and the majority of the red ink in 2012 — was not due to reduced mail flow but rather to mounting mandatory costs for future retiree health benefits, which made up $11.1 billion of the losses. Without that and other related labor expenses, the mail agency sustained an operating loss of $2.4 billion, lower than the previous year. The health payments are a requirement imposed by Congress in 2006 that the post office set aside $55 billion in an account to cover future medical costs for retirees. The idea was to put $5.5 billion a year into the account for 10 years. That's $5.5 billion the post office doesn't have. No other government agency is required to make such a payment for future medical benefits. Postal authorities wanted Congress to address the issue last year, but lawmakers finished their session without getting it done. So officials are moving ahead to accelerate their own plan for cost-cutting. The Postal Service is in the midst of a major restructuring throughout its retail, delivery and mail processing operations. Since 2006, it has cut annual costs by about $15 billion, reduced the size of its career workforce by 193,000 or by 28 percent, and has consolidated more than 200 mail processing locations, officials say. They say that while the change in the delivery schedule announced Wednesday is one of the actions needed to restore the financial health of the service, they still urgently need lawmakers to act. Officials say they continue to press for legislation that will give them greater flexibility to control costs and make new revenues.
URL to original article: http://thebusinessjournal.com/news/national/4869-postal-service-to-cut-saturday-mail-to-trim-costs
For further information on Fresno Real Estate check: http://www.londonproperties.com
Written by PAULINE JELINEK, Associated Press
(AP) — Apparently trying an end-run around an unaccommodating Congress, the financially struggling U.S. Postal Service says it will stop delivering mail on Saturdays but continue to disburse packages six days a week. In an announcement scheduled for later Wednesday, the service is expected to say the Saturday mail cutback would begin in August and could save $2 billion annually. The move accentuates one of the agency's strong points — package delivery has increased by 14 percent since 2010, officials say, while the delivery of letters and other mail has declined with the increasing use of email and other Internet services. Under the new plan, mail would be delivered to homes and businesses only from Monday through Friday, but would still be delivered to post office boxes on Saturdays. Post offices now open on Saturdays would remain open on Saturdays. Over the past several years, the Postal Service has advocated shifting to a five-day delivery schedule for mail and packages — and it repeatedly but unsuccessfully appealed to Congress to approve the move. Though an independent agency, the service gets no tax dollars for its day-to-day operations but is subject to congressional control. It was not immediately clear how the service could eliminate Saturday mail without congressional approval. But the agency clearly thinks it has a majority of the American public on its side regarding the change. Material prepared for the Wednesday press conference by Patrick R. Donahoe, postmaster general and CEO, says Postal Service market research and other research has indicated that nearly 7 in 10 Americans support the switch to five-day delivery as a way for the Postal Service to reduce costs. "The Postal Service is advancing an important new approach to delivery that reflects the strong growth of our package business and responds to the financial realities resulting from America's changing mailing habits," Donahoe said in a statement prepared for the announcement. "We developed this approach by working with our customers to understand their delivery needs and by identifying creative ways to generate significant cost savings." But the president of the National Association of Letter Carriers, Fredric Rolando, said the end of Saturday mail delivery is "a disastrous idea that would have a profoundly negative effect on the Postal Service and on millions of customers," particularly businesses, rural communities, the elderly, the disabled and others who depend on Saturday delivery for commerce and communication. He said the maneuver by Donahoe to make the change "flouts the will of Congress, as expressed annually over the past 30 years in legislation that mandates six-day delivery." There was no immediate comment from lawmakers. But others agreed the Postal Service had little choice but to try. "If the Congress of the United States refuses to take action to save the U.S. Postal Service, then the Postal Service will have to take action on its own," said corporate communications expert James S. O'Rourke, professor of management at the University of Notre Dame. He said other action will be needed as well, such as shuttering smaller rural post offices and restructuring employee health care and pension costs. "It's unclear whether the USPS has the legislative authority to take such actions on its own, but the alternative is the status quo until it is completely cash starved," O'Rourke said in a statement. The Postal Service is making the announcement Wednesday, more than six months before the switch, to give residential and business customers time to plan and adjust, the statement said. "The American public understands the financial challenges of the Postal Service and supports these steps as a responsible and reasonable approach to improving our financial situation," Donahoe said. "The Postal Service has a responsibility to take the steps necessary to return to long-term financial stability and ensure the continued affordability of the U.S. Mail." He said the change would mean a combination of employee reassignment and attrition and is expected to achieve cost savings of approximately $2 billion annually when fully implemented. The agency in November reported an annual loss of a record $15.9 billion for the last budget year and forecast more red ink in 2013, capping a tumultuous year in which it was forced to default on billions in retiree health benefit prepayments to avert bankruptcy. The financial losses for the fiscal year ending Sept. 30 were more than triple the $5.1 billion loss in the previous year. Having reached its borrowing limit, the mail agency is operating with little cash on hand. The agency's biggest problem — and the majority of the red ink in 2012 — was not due to reduced mail flow but rather to mounting mandatory costs for future retiree health benefits, which made up $11.1 billion of the losses. Without that and other related labor expenses, the mail agency sustained an operating loss of $2.4 billion, lower than the previous year. The health payments are a requirement imposed by Congress in 2006 that the post office set aside $55 billion in an account to cover future medical costs for retirees. The idea was to put $5.5 billion a year into the account for 10 years. That's $5.5 billion the post office doesn't have. No other government agency is required to make such a payment for future medical benefits. Postal authorities wanted Congress to address the issue last year, but lawmakers finished their session without getting it done. So officials are moving ahead to accelerate their own plan for cost-cutting. The Postal Service is in the midst of a major restructuring throughout its retail, delivery and mail processing operations. Since 2006, it has cut annual costs by about $15 billion, reduced the size of its career workforce by 193,000 or by 28 percent, and has consolidated more than 200 mail processing locations, officials say. They say that while the change in the delivery schedule announced Wednesday is one of the actions needed to restore the financial health of the service, they still urgently need lawmakers to act. Officials say they continue to press for legislation that will give them greater flexibility to control costs and make new revenues.
URL to original article: http://thebusinessjournal.com/news/national/4869-postal-service-to-cut-saturday-mail-to-trim-costs
For further information on Fresno Real Estate check: http://www.londonproperties.com
Monday, February 4, 2013
Purchased solar systems can add to home value
Source: The Business Journal
Written by Chuck Harvey
Soaring electric costs have made solar roof panels an attractive way to cut energy costs during the sizzling hot San Joaquin Valley summer months. But solar systems can also add to the value of a home when it comes time to sell. “It can add 8-10 percent on to the value if you own the solar system,” said Ken Neufield, agent for London Properties in Fresno. However, if the system is being leased, it does not improve the value, he said. Also, when a solar system is leased, the homeowner does not receive solar credits or rebates. The solar leasing company does. Government tax credits can add up to $2,000 with rebates going even higher. They can save as much as 40 percent of the cost of the solar system. And the seller must remove the leased system or keep it in place and require the buyer to assume the lease. That could be a plus or a minus depending on whether the potential buyer liked the idea of leasing a system. A recent ad for a home in Selma included a description of a leased solar system that the buyer would be required to assume the lease on. The lease was $120 a month with 12 years remaining on the contract. The ad also pointed out that the system allowed the owner very low electric costs that averaged less than $50 a month in 2011. The fact that the system keeps electric costs down during the costly summer months could be an attractive selling point, at least to some buyers. But if improving the value of the home is part of the plan, then a purchased solar system would be the way to go. Also, research shows that a home solar system can pay for itself through added value when a home is sold. The U.S. department of Energy’s Lawrence Berkeley National Laboratory determined through an analysis of 72,000 California homes sold between 2000 and 2009 that the premium received on the value of the home more or less matched the initial capital investment in the solar system. The study also found that houses with solar panels installed sold at a premium of $17,000 more than similar houses with no solar panels. Besides going on roofs, systems are available that place solar panels in different locations near the home. Earth Wind & Solar, Inc. of Coarsegold offers photovoltaic solar products that attach to cabanas, overhangs called charging trees, fences and solar arches that also serve as shelter for a car. The products are known as the G-Mount product line. Earth Wind & Solar also provides more traditional systems for the roof ranging from 12 solar panels to 24 solar panels, priced from $9,936 to $19,875 installed. The company has also developed a “super size” panel system designed for homes with monthly bills of more than $300. The purchase includes equipment, installation, seven years of monitoring and maintenance and a performance guarantee. J. Scott Leonard, president and chief executive officer of Guarantee Real Estate in Fresno, said that solar systems generally add about half the value of the solar system to the current value of the home. Leonard had a solar system installed on his home in 2012 at a cost of about $34,000. “I love it,” Leonard said. But he said that if the house were sold, he would not be able to get the total cost of the solar system back. Still, he sees it as worth the cost. “It is of value to the environment and adds value to the home,” Leonard said. He added, “It will have a long-term payback to me.” It can be a great selling feature, Leonard said. “It adds value, but it is unlikely the seller will recover the entire cost,” he said. “And if you lease, it adds nothing to the value.” In terms of saving money on the cost of electricity, Leonard said the savings can be substantial. He said that his September bill, which came following a blazing hot month, was only $50. “I was very pleased,” Leonard said.
URL to original article: http://thebusinessjournal.com/news/real-estate/4848-purchased-solar-systems-can-add-to-home-value
For further information on Fresno Real Estate check: http://www.londonproperties.com
Written by Chuck Harvey
Soaring electric costs have made solar roof panels an attractive way to cut energy costs during the sizzling hot San Joaquin Valley summer months. But solar systems can also add to the value of a home when it comes time to sell. “It can add 8-10 percent on to the value if you own the solar system,” said Ken Neufield, agent for London Properties in Fresno. However, if the system is being leased, it does not improve the value, he said. Also, when a solar system is leased, the homeowner does not receive solar credits or rebates. The solar leasing company does. Government tax credits can add up to $2,000 with rebates going even higher. They can save as much as 40 percent of the cost of the solar system. And the seller must remove the leased system or keep it in place and require the buyer to assume the lease. That could be a plus or a minus depending on whether the potential buyer liked the idea of leasing a system. A recent ad for a home in Selma included a description of a leased solar system that the buyer would be required to assume the lease on. The lease was $120 a month with 12 years remaining on the contract. The ad also pointed out that the system allowed the owner very low electric costs that averaged less than $50 a month in 2011. The fact that the system keeps electric costs down during the costly summer months could be an attractive selling point, at least to some buyers. But if improving the value of the home is part of the plan, then a purchased solar system would be the way to go. Also, research shows that a home solar system can pay for itself through added value when a home is sold. The U.S. department of Energy’s Lawrence Berkeley National Laboratory determined through an analysis of 72,000 California homes sold between 2000 and 2009 that the premium received on the value of the home more or less matched the initial capital investment in the solar system. The study also found that houses with solar panels installed sold at a premium of $17,000 more than similar houses with no solar panels. Besides going on roofs, systems are available that place solar panels in different locations near the home. Earth Wind & Solar, Inc. of Coarsegold offers photovoltaic solar products that attach to cabanas, overhangs called charging trees, fences and solar arches that also serve as shelter for a car. The products are known as the G-Mount product line. Earth Wind & Solar also provides more traditional systems for the roof ranging from 12 solar panels to 24 solar panels, priced from $9,936 to $19,875 installed. The company has also developed a “super size” panel system designed for homes with monthly bills of more than $300. The purchase includes equipment, installation, seven years of monitoring and maintenance and a performance guarantee. J. Scott Leonard, president and chief executive officer of Guarantee Real Estate in Fresno, said that solar systems generally add about half the value of the solar system to the current value of the home. Leonard had a solar system installed on his home in 2012 at a cost of about $34,000. “I love it,” Leonard said. But he said that if the house were sold, he would not be able to get the total cost of the solar system back. Still, he sees it as worth the cost. “It is of value to the environment and adds value to the home,” Leonard said. He added, “It will have a long-term payback to me.” It can be a great selling feature, Leonard said. “It adds value, but it is unlikely the seller will recover the entire cost,” he said. “And if you lease, it adds nothing to the value.” In terms of saving money on the cost of electricity, Leonard said the savings can be substantial. He said that his September bill, which came following a blazing hot month, was only $50. “I was very pleased,” Leonard said.
URL to original article: http://thebusinessjournal.com/news/real-estate/4848-purchased-solar-systems-can-add-to-home-value
For further information on Fresno Real Estate check: http://www.londonproperties.com
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