Source: The Business Journal
Distressed home sales dropped in Fresno and Madera counties in September compared to the same month in 2011, according to a report released from the California Association of Realtors on Monday.
Madera County reported 60 percent of its total single-family home sales were distressed home sales. That is a drop from 65 percent in September 2011 but an increase from August 2012, when it was 49 percent.
Fresno County’s distressed sales were 51 percent of its home sales—a decline from the 57 percent in September 2011 and a rise from 47 percent in August 2012.
Kings County did not report distressed sales last year, but it experienced a significant drop from August to September. The county’s distress sales rate was 39 percent in September and 52 percent in August.
Tulare County did not report distressed sales in September.
The distressed sales rate for the state was 37 percent in September, 37.8 percent in August and 49.2 percent in September 2011.
URL to original article: http://www.thebusinessjournal.com/news/real-estate/3673-report-distressed-home-sales-fall
For further information on Fresno Real Estate check: http://www.londonproperties.com
Monday, October 22, 2012
Friday, October 19, 2012
Foreclosed homeowners shopping again
Source: Housingwire
This post comes from Marilyn Lewis of MSN Money.
Homeowners who went through foreclosure a few years ago are becoming a small but growing force in the homebuying market. The Wall Street Journal calls them "boomerang buyers." The WSJ says that "real-estate agents, mortgage brokers and home builders all say a significant number of new buyers are families and individuals who went through foreclosure as recently as three years ago, the time period that buyers who defaulted on a mortgage must typically wait before becoming eligible for a mortgage backed by the Federal Housing Administration." Rising in Phoenix One is Ronda Martinez, 39, who, with her husband, Mark, lost a $430,000 home to foreclosure in 2007 when they had to move to Phoenix for a job and couldn't sell their home in Perris, Calif. Since then, the Journal says, "the family has repaired their finances" and Ronda Martinez, after losing one job, has found another: "This month, the family is closing on a $150,000 home in Phoenix that has five bedrooms and a pool in the back. "'Initially people are upset and think, "I'll never buy again,"' she said. But 'there's no reason to give up on owning.'" The low cost of buying, compared with rising rental costs, is what's pushing many to re-enter the market, Reuters says: "'Most are not ashamed or bashful about what happened because so many people were forced into that reality in the last six years,' says Graham Epperson, vice president of sales in Arizona for the PulteGroup, a leading U.S. home builder." Lennar, the homebuilding company, sees more of these buyers "coming out of the penalty box." Cornerstone Communities, a San Diego home builder, says about 20 of their 110 closings this year involved buyers with a history of foreclosure or short sale. Moody's Analytics estimates that 729,000 households that were foreclosed on during the housing bust are now eligible to apply for an FHA loan, up from 285,000 in mid-2011. Moody's expects that to grow to 1.5 million by early 2014. It doesn't mean all those people will qualify for mortgages, of course, only that they're eligible to make an application. How do they do it? How did they recover so quickly from foreclosure to buy a home, and when so many other would-be buyers can't get a mortgage when they haven't been through foreclosure? Buyers with a foreclosure history find FHA loans friendlier. They're easier to obtain and require down payments as small as 3.5%. But they're also more expensive over the long run, with slightly higher interest rates and the requirement that buyers purchase mortgage insurance (to protect the lender). The upfront insurance premium is 1.75% of the loan amount (it can be financed). Additional yearly premiums amount to 1.25% of your outstanding loan amount. "'These are not mainstream programs geared for mainstream borrowers,' says Greg McBride, a senior financial analyst at Bankrate.com, who expects to see more of those with blemished credit re-enter the housing market," writes Reuters. Lenders are "much more likely to lend to people who lost a job than to consumers who could have afforded their mortgage but chose to default," Reuters says. The Journal adds: "There is a web of rules for when and how people who have lost homes to foreclosure or short sales or have gone through a bankruptcy can become eligible for a new mortgage. It typically takes three years after a foreclosure or short sale for a buyer to qualify for an FHA-backed loan. In many cases, it takes just one year after a Chapter 13 bankruptcy discharge, according to the agency." Fannie Mae and Freddie Mac require longer -- as long as seven years. Rebuilding credit Besides enduring a waiting period to apply, buyers also must rebuild credit. Foreclosures and short sales deal massive, but potentially temporary, blows to credit histories. Experian, the credit reporting company, says: "According to VantageScore Solutions LLC, a mortgage loan settled through a short sale typically results in a change of 120 to 130 points to the VantageScore credit score. A foreclosure generally causes a decline of 130 to 140 points." The impact and recovery time vary, depending on your scores and on your personal credit history. FICO, the credit scoring company, offers three examples: •A 680 FICO score before foreclosure may fall to between 575 and 595 after and it could take just three years to restore the score. •A 720 score could drop to 570 to 590 and need up to seven years to recover. •A 780 score could fall to 620 to 640 and, likewise, take up to seven years to rebuild. "In general, the higher your starting score, the longer it takes for your score to fully recover," FICO says. It takes seven years for most delinquencies to disappear from your credit report. Chapter 7 bankruptcy can linger for 10 years. Unpaid tax liens hang around "indefinitely." As tough as foreclosure is on your credit scores, bankruptcy is worse, shaving off more points and taking longer for credit to repair. "Extenuating circumstances like a job loss, illness or divorce" could help you establish credit more quickly after foreclosure, says The New York Times. The Times lists requirements for qualifying with Fannie Mae and Freddie Mac: "With such (extenuating) circumstances, Fannie and Freddie specify a two-year wait after a short sale, deed in lieu, or discharge or dismissal of bankruptcy, and three years after foreclosure. Without extenuating circumstances, waits can extend to four years after bankruptcy and seven years after foreclosure." Realty Times offers guidance on repairing credit after foreclosure.
URL to original article: http://www.housingwire.com/content/foreclosed-homeowners-return-market
For further information on Fresno Real Estate check: http://www.londonproperties.com
This post comes from Marilyn Lewis of MSN Money.
Homeowners who went through foreclosure a few years ago are becoming a small but growing force in the homebuying market. The Wall Street Journal calls them "boomerang buyers." The WSJ says that "real-estate agents, mortgage brokers and home builders all say a significant number of new buyers are families and individuals who went through foreclosure as recently as three years ago, the time period that buyers who defaulted on a mortgage must typically wait before becoming eligible for a mortgage backed by the Federal Housing Administration." Rising in Phoenix One is Ronda Martinez, 39, who, with her husband, Mark, lost a $430,000 home to foreclosure in 2007 when they had to move to Phoenix for a job and couldn't sell their home in Perris, Calif. Since then, the Journal says, "the family has repaired their finances" and Ronda Martinez, after losing one job, has found another: "This month, the family is closing on a $150,000 home in Phoenix that has five bedrooms and a pool in the back. "'Initially people are upset and think, "I'll never buy again,"' she said. But 'there's no reason to give up on owning.'" The low cost of buying, compared with rising rental costs, is what's pushing many to re-enter the market, Reuters says: "'Most are not ashamed or bashful about what happened because so many people were forced into that reality in the last six years,' says Graham Epperson, vice president of sales in Arizona for the PulteGroup, a leading U.S. home builder." Lennar, the homebuilding company, sees more of these buyers "coming out of the penalty box." Cornerstone Communities, a San Diego home builder, says about 20 of their 110 closings this year involved buyers with a history of foreclosure or short sale. Moody's Analytics estimates that 729,000 households that were foreclosed on during the housing bust are now eligible to apply for an FHA loan, up from 285,000 in mid-2011. Moody's expects that to grow to 1.5 million by early 2014. It doesn't mean all those people will qualify for mortgages, of course, only that they're eligible to make an application. How do they do it? How did they recover so quickly from foreclosure to buy a home, and when so many other would-be buyers can't get a mortgage when they haven't been through foreclosure? Buyers with a foreclosure history find FHA loans friendlier. They're easier to obtain and require down payments as small as 3.5%. But they're also more expensive over the long run, with slightly higher interest rates and the requirement that buyers purchase mortgage insurance (to protect the lender). The upfront insurance premium is 1.75% of the loan amount (it can be financed). Additional yearly premiums amount to 1.25% of your outstanding loan amount. "'These are not mainstream programs geared for mainstream borrowers,' says Greg McBride, a senior financial analyst at Bankrate.com, who expects to see more of those with blemished credit re-enter the housing market," writes Reuters. Lenders are "much more likely to lend to people who lost a job than to consumers who could have afforded their mortgage but chose to default," Reuters says. The Journal adds: "There is a web of rules for when and how people who have lost homes to foreclosure or short sales or have gone through a bankruptcy can become eligible for a new mortgage. It typically takes three years after a foreclosure or short sale for a buyer to qualify for an FHA-backed loan. In many cases, it takes just one year after a Chapter 13 bankruptcy discharge, according to the agency." Fannie Mae and Freddie Mac require longer -- as long as seven years. Rebuilding credit Besides enduring a waiting period to apply, buyers also must rebuild credit. Foreclosures and short sales deal massive, but potentially temporary, blows to credit histories. Experian, the credit reporting company, says: "According to VantageScore Solutions LLC, a mortgage loan settled through a short sale typically results in a change of 120 to 130 points to the VantageScore credit score. A foreclosure generally causes a decline of 130 to 140 points." The impact and recovery time vary, depending on your scores and on your personal credit history. FICO, the credit scoring company, offers three examples: •A 680 FICO score before foreclosure may fall to between 575 and 595 after and it could take just three years to restore the score. •A 720 score could drop to 570 to 590 and need up to seven years to recover. •A 780 score could fall to 620 to 640 and, likewise, take up to seven years to rebuild. "In general, the higher your starting score, the longer it takes for your score to fully recover," FICO says. It takes seven years for most delinquencies to disappear from your credit report. Chapter 7 bankruptcy can linger for 10 years. Unpaid tax liens hang around "indefinitely." As tough as foreclosure is on your credit scores, bankruptcy is worse, shaving off more points and taking longer for credit to repair. "Extenuating circumstances like a job loss, illness or divorce" could help you establish credit more quickly after foreclosure, says The New York Times. The Times lists requirements for qualifying with Fannie Mae and Freddie Mac: "With such (extenuating) circumstances, Fannie and Freddie specify a two-year wait after a short sale, deed in lieu, or discharge or dismissal of bankruptcy, and three years after foreclosure. Without extenuating circumstances, waits can extend to four years after bankruptcy and seven years after foreclosure." Realty Times offers guidance on repairing credit after foreclosure.
URL to original article: http://www.housingwire.com/content/foreclosed-homeowners-return-market
For further information on Fresno Real Estate check: http://www.londonproperties.com
Borrowers will buy haunted houses, but expect discount
Source: Housingwire
Realtor.com said at least 32% of potential homebuyers would consider buying a haunted house or a property suspected of paranormal activity, according to a recent survey.
Still, 29% of those willing buyers believe a discount of at least 20% is in order since ghosts and flying plates tend to lower a property's value.
About 33% said they would consider a haunted home, while another 35% are against the idea entirely.
Two percent of those surveyed said they'd be willing to pay more for a haunted house.
But if your home has ghostly presences, it's wise to tell them not to act up on the property tour. Sixty-two percent of the Realtor.com survey respondents said a warm or cold spot (perhaps produced by your ghost) could kill the sale.
Strange noises, footsteps and slamming doors also are considered deterrents for 48% of respondents. Another 41% are okay with ghosts as long as the ghosts remain invisible.
Other than that, your less than lively houseguests are not a deal breaker, especially around Halloween.
What rumored spooky happenings would NOT stop you from purchasing a home (assuming the home is otherwise a good fit) (Select all that apply)?
Source: Realtor.com
■62% - Warm or cold spots
■48% - Strange noises (footsteps, doors slamming)
■44% - Objects being moved from where they were placed
■45% - Flickering lights/appliances
■43% - Strange sensations
■41% - Ghost sightings
■36% - Levitating objects
■35% - Strange voices
■24% - All of the above would stop me from purchasing a home
How much would a “haunted” home have to be discounted (from its market value) for you to decide to purchase it?
■15% - 0% I would pay full market value of the home
■12% - 1-10% less than market value
■17% - 11-20% less than market value
■18% - 21-30% less than market value
■19% - 31-50% less than market value
■17% - 51%+ less than market value
■2% - I would pay more than market value for a “haunted” home
URL to original article: http://www.housingwire.com/content/consumers-will-buy-haunted-house-expect-discount
For further information on Fresno Real Estate check: http://www.londonproperties.com
URL to original article: http://www.housingwire.com/content/consumers-will-buy-haunted-house-expect-discount
For further information on Fresno Real Estate check: http://www.londonproperties.com
Fewer distressed homes could spur home construction
Source: Housingwire
Positive housing data that shows existing-home sales up from year ago levels should be weighed against ongoing employment concerns and consumers' economic fears, Fitch Ratings said in a new report Friday. In other words, the nation may be in a modest housing recovery, but too many outliers remain to declare an end to the nation's real estate troubles. As for who may benefit from housing data that shows the supply of distressed assets dwindling and rents rising, Fitch points to homebuilders who may experience an uptick in new home construction. The Commerce Department even reported this week that new home construction rose 15% in September to 872,000 units on a seasonally-adjusted basis. While existing-home sales fell month-over-month in September, they remain significantly higher than year ago levels. "However, we note that new home construction numbers can be volatile as they fluctuate more frequently versus other indicators," said Robert Curran, managing director of homebuilding for Fitch. "Although starts have been stronger for several months, we are hesitant to suggest that a V-shaped housing recovery is forming." Today, there is less competition from distressed home sales and rental prices are on the rise, Curran noted. These factors alone could send homebuyers scrambling for the creation of new homes. With this in mind, Curran says single-family housing starts could rise a total of 19% in 2012, while existing home sales are expected to grow 8.5% for the year. He expects "further moderate improvement" next year.
URL to original article: http://www.housingwire.com/content/fewer-distressed-homes-could-spur-home-construction
For further information on Fresno Real Estate check: http://www.londonproperties.com
Positive housing data that shows existing-home sales up from year ago levels should be weighed against ongoing employment concerns and consumers' economic fears, Fitch Ratings said in a new report Friday. In other words, the nation may be in a modest housing recovery, but too many outliers remain to declare an end to the nation's real estate troubles. As for who may benefit from housing data that shows the supply of distressed assets dwindling and rents rising, Fitch points to homebuilders who may experience an uptick in new home construction. The Commerce Department even reported this week that new home construction rose 15% in September to 872,000 units on a seasonally-adjusted basis. While existing-home sales fell month-over-month in September, they remain significantly higher than year ago levels. "However, we note that new home construction numbers can be volatile as they fluctuate more frequently versus other indicators," said Robert Curran, managing director of homebuilding for Fitch. "Although starts have been stronger for several months, we are hesitant to suggest that a V-shaped housing recovery is forming." Today, there is less competition from distressed home sales and rental prices are on the rise, Curran noted. These factors alone could send homebuyers scrambling for the creation of new homes. With this in mind, Curran says single-family housing starts could rise a total of 19% in 2012, while existing home sales are expected to grow 8.5% for the year. He expects "further moderate improvement" next year.
URL to original article: http://www.housingwire.com/content/fewer-distressed-homes-could-spur-home-construction
For further information on Fresno Real Estate check: http://www.londonproperties.com
Existing home sales fall, but up 11% from last year
Source: Housingwire
By Kerri Ann Panchuk
September existing-home sales fell slightly from the previous month, but remain well above year-ago levels as prices continue to escalate on new demand in key real estate markets. The National Association of Realtors said existing-home sales declined 1.7% from August to September, with 4.75 million units sold last month, down from 4.83 million in August. Still, September numbers are up 11% from the 4.28 million units sold a year ago. Overall, real estate is performing better than it was in 2011 with September home prices recording their seventh consecutive month of year-over-year increases, NAR said. "Despite occasional month-to-month setbacks, we're experiencing a genuine recovery," said Lawrence Yun, chief economist with NAR. "More people are attempting to buy homes than are able to qualify for mortgages, and recent price increases are not deterring buyer interest. Rather, inventory shortages are limiting sales, notably in parts of the West." The national median price for an existing home shot up 11.3% from last year to $183,900 in September, making it the seventh consecutive month of annual price increases. Distressed properties, including foreclosures and short sales, represented 24% of all September sales, an increase from 22% in August and down from 30% a year ago. Foreclosures generally sold at a 21% discount while short sales sold 13% under market value in September, NAR said. The country's total pipeline of existing inventory fell 3.3% in September to 2.32 million homes, which reflects a 5.9-month supply. Today's inventory level is 20% below year ago levels when the nation carried an eight-month supply. "The shrinkage in housing supply is supporting ongoing price growth, a pattern that could accelerate unless home builders robustly ramp up production," Yun said. Homes also are spending less time on the market, with the median listing time now running 70 days, down from 101 days in September of 2011. About 32% of homes sold last month spent less than 30 days on the market. Nineteen percent remained listed for six months or longer.
URL to original article: http://www.housingwire.com/news/existing-home-sales-fall-11-last-year
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Kerri Ann Panchuk
September existing-home sales fell slightly from the previous month, but remain well above year-ago levels as prices continue to escalate on new demand in key real estate markets. The National Association of Realtors said existing-home sales declined 1.7% from August to September, with 4.75 million units sold last month, down from 4.83 million in August. Still, September numbers are up 11% from the 4.28 million units sold a year ago. Overall, real estate is performing better than it was in 2011 with September home prices recording their seventh consecutive month of year-over-year increases, NAR said. "Despite occasional month-to-month setbacks, we're experiencing a genuine recovery," said Lawrence Yun, chief economist with NAR. "More people are attempting to buy homes than are able to qualify for mortgages, and recent price increases are not deterring buyer interest. Rather, inventory shortages are limiting sales, notably in parts of the West." The national median price for an existing home shot up 11.3% from last year to $183,900 in September, making it the seventh consecutive month of annual price increases. Distressed properties, including foreclosures and short sales, represented 24% of all September sales, an increase from 22% in August and down from 30% a year ago. Foreclosures generally sold at a 21% discount while short sales sold 13% under market value in September, NAR said. The country's total pipeline of existing inventory fell 3.3% in September to 2.32 million homes, which reflects a 5.9-month supply. Today's inventory level is 20% below year ago levels when the nation carried an eight-month supply. "The shrinkage in housing supply is supporting ongoing price growth, a pattern that could accelerate unless home builders robustly ramp up production," Yun said. Homes also are spending less time on the market, with the median listing time now running 70 days, down from 101 days in September of 2011. About 32% of homes sold last month spent less than 30 days on the market. Nineteen percent remained listed for six months or longer.
URL to original article: http://www.housingwire.com/news/existing-home-sales-fall-11-last-year
For further information on Fresno Real Estate check: http://www.londonproperties.com
Thursday, October 18, 2012
Gasoline prices - finally - begin to slide
Source: The Business Journal
Written by JONATHAN FAHEY, AP Energy Writer
(AP) — Gasoline prices have begun their seasonal slide. Better late than never, drivers say. The national average retail price has fallen for ten straight days and is now $3.74 per gallon. It could mark the beginning of the usual autumn decrease that was delayed this year because of refinery problems and high oil prices. Tom Kloza, chief oil analyst at the Oil Price Information Service, predicts drops of 5 cents to 15 cents per week for the next three weeks. Over the next several weeks the national average could be at or below where it was last year. "There's some nice relief coming," he said. It can't come soon enough for Mary Hess, who commutes 40 miles each way from her home in Sodus Point, N.Y. to Oswego, N.Y., where she teaches English. She hasn't noticed much of a drop — she's still paying $4.04 per gallon to fill up her Buick Century. Gasoline is among the biggest parts of her budget — and she doesn't think it should be. "I'm frustrated more than anything," she said. Gasoline prices typically decline in the fall as refiners switch to cheaper fuel blends and drivers take a break from road trips. This year a series of refinery and pipeline problems sent gasoline supplies plummeting. That sent wholesale gasoline buyers and traders scrambling to purchase whatever they could, at ever higher prices, to secure supply. "It was a cluster of random coincidental events and the buying had a panic nature to it," Kloza said. Gasoline prices were already steep — they were on track to set an annual record by mid-summer — because of relatively high global crude oil prices. Brent, the type of crude most important in determining the price of gasoline, has averaged $112 per barrel this year. Global oil demand is on track to set a record this year despite economic uncertainty. And the standoff over Iran's nuclear program has raised fears that oil supplies could be disrupted if tensions escalate. Against that backdrop, the nation's gasoline infrastructure got slammed. In August, ruptures to pipelines that serve the Great Lakes and refinery outages in Indiana and Illinois sent gasoline prices higher in the Midwest. Then a fire at a Chevron refinery in Richmond, Calif. crippled a major contributor to California's gasoline supplies. Then Hurricane Isaac forced several Gulf Coast refineries to shut or slow down operations. As those refineries ramped back up, California saw more trouble. A pipeline that serves Bay Area refineries closed, two refineries were offline for maintenance and an Exxon Mobil Corp. refinery in Torrance, Calif., near Los Angeles shut down because of a surprise power outage. The national average price kept rising after Labor Day, when prices normally start to fall. It topped out for the season at $3.87 on Sept. 14 and California prices hit a record $4.67 per gallon on Oct. 7. On the East Coast, gasoline supplies dipped to a four-year low, keeping prices stubbornly high. Then — finally — the market began to stabilize. The government reported Wednesday that gasoline supplies are heading back up. They had fallen for 10 of the last 11 weeks. That led to a dramatic drop in wholesale gasoline prices in regional spot markets, according to Kloza, that will soon translate into lower prices at the pump. California spot prices are down 30 percent over two weeks. Prices elsewhere in the country have declined between 15 percent and 27 percent. In Chicago, wholesale prices have fallen to $2.36 per gallon. That could bring retail gasoline prices in some parts of the Midwest to near $3 per gallon in the coming weeks. The average price at the pump fell 22 cents in Ohio and 16 cents in Wisconsin in the past week. Those are two key battleground states in the presidential election, with 18 and 10 electoral votes, respectively. The rest of the nation's drivers won't be quite so lucky. But, still, the national average could be on its way to $3.50 per gallon, or below.
URL to original article: http://www.thebusinessjournal.com/news/national/3646-gasoline-prices-finally-begin-to-slide
For further information on Fresno Real Estate check: http://www.londonproperties.com
Written by JONATHAN FAHEY, AP Energy Writer
(AP) — Gasoline prices have begun their seasonal slide. Better late than never, drivers say. The national average retail price has fallen for ten straight days and is now $3.74 per gallon. It could mark the beginning of the usual autumn decrease that was delayed this year because of refinery problems and high oil prices. Tom Kloza, chief oil analyst at the Oil Price Information Service, predicts drops of 5 cents to 15 cents per week for the next three weeks. Over the next several weeks the national average could be at or below where it was last year. "There's some nice relief coming," he said. It can't come soon enough for Mary Hess, who commutes 40 miles each way from her home in Sodus Point, N.Y. to Oswego, N.Y., where she teaches English. She hasn't noticed much of a drop — she's still paying $4.04 per gallon to fill up her Buick Century. Gasoline is among the biggest parts of her budget — and she doesn't think it should be. "I'm frustrated more than anything," she said. Gasoline prices typically decline in the fall as refiners switch to cheaper fuel blends and drivers take a break from road trips. This year a series of refinery and pipeline problems sent gasoline supplies plummeting. That sent wholesale gasoline buyers and traders scrambling to purchase whatever they could, at ever higher prices, to secure supply. "It was a cluster of random coincidental events and the buying had a panic nature to it," Kloza said. Gasoline prices were already steep — they were on track to set an annual record by mid-summer — because of relatively high global crude oil prices. Brent, the type of crude most important in determining the price of gasoline, has averaged $112 per barrel this year. Global oil demand is on track to set a record this year despite economic uncertainty. And the standoff over Iran's nuclear program has raised fears that oil supplies could be disrupted if tensions escalate. Against that backdrop, the nation's gasoline infrastructure got slammed. In August, ruptures to pipelines that serve the Great Lakes and refinery outages in Indiana and Illinois sent gasoline prices higher in the Midwest. Then a fire at a Chevron refinery in Richmond, Calif. crippled a major contributor to California's gasoline supplies. Then Hurricane Isaac forced several Gulf Coast refineries to shut or slow down operations. As those refineries ramped back up, California saw more trouble. A pipeline that serves Bay Area refineries closed, two refineries were offline for maintenance and an Exxon Mobil Corp. refinery in Torrance, Calif., near Los Angeles shut down because of a surprise power outage. The national average price kept rising after Labor Day, when prices normally start to fall. It topped out for the season at $3.87 on Sept. 14 and California prices hit a record $4.67 per gallon on Oct. 7. On the East Coast, gasoline supplies dipped to a four-year low, keeping prices stubbornly high. Then — finally — the market began to stabilize. The government reported Wednesday that gasoline supplies are heading back up. They had fallen for 10 of the last 11 weeks. That led to a dramatic drop in wholesale gasoline prices in regional spot markets, according to Kloza, that will soon translate into lower prices at the pump. California spot prices are down 30 percent over two weeks. Prices elsewhere in the country have declined between 15 percent and 27 percent. In Chicago, wholesale prices have fallen to $2.36 per gallon. That could bring retail gasoline prices in some parts of the Midwest to near $3 per gallon in the coming weeks. The average price at the pump fell 22 cents in Ohio and 16 cents in Wisconsin in the past week. Those are two key battleground states in the presidential election, with 18 and 10 electoral votes, respectively. The rest of the nation's drivers won't be quite so lucky. But, still, the national average could be on its way to $3.50 per gallon, or below.
URL to original article: http://www.thebusinessjournal.com/news/national/3646-gasoline-prices-finally-begin-to-slide
For further information on Fresno Real Estate check: http://www.londonproperties.com
Friday, October 12, 2012
Housing recovery should not be confused with mortgage recovery
Source: Housingwire
The common thread from the ongoing Zillow ($36.86 -0.96%) housing conference is this: Housing is in a recovery, mortgages are not. It is a very important distinction, one excellently made by panelists at the Zillow conference. John Burns, once though of as a permabear in the housing industry, is suddenly more positive about housing. As he points out, only 10% of total households remain in negative equity. So housing prices are rising and reducing this number. Starts are strong. Homebuilders, whom Burns consults with his eponymous firm, are seeing businesses improve. So good for housing. Listening to the same panel though, mortgages are in another universe. "Those who deal with MBS," Burns said, "are in hell." Mark Hanson of Mark Hanson Advisers said the five to six million mortgage modifications in the last few years only keep the homeowner in a debt prison, with little hope in the future. "They are zombie renters in their own homes," Hanson said. "The repeat buyer has died." Pointing to the common thread, speaking earlier, the Federal Housing Administration acting commissioner Carol Galante said the private mortgage market needs to aggressively return in order to sustain these housing gains. After listening to Hanson speak, I'm not feeling very confident. He added that it's not a lack of mortgage credit, but a lack of credit-worthy borrowers. Without a private market for securitization, Burns said, mortgages originated without the aid of the government in some way or another are unlikely to come back in force.
URL to original article: http://www.housingwire.com/rewired/housing-recovery-should-not-be-confused-mortgage-recovery
For further information on Fresno Real Estate check: http://www.londonproperties.com
The common thread from the ongoing Zillow ($36.86 -0.96%) housing conference is this: Housing is in a recovery, mortgages are not. It is a very important distinction, one excellently made by panelists at the Zillow conference. John Burns, once though of as a permabear in the housing industry, is suddenly more positive about housing. As he points out, only 10% of total households remain in negative equity. So housing prices are rising and reducing this number. Starts are strong. Homebuilders, whom Burns consults with his eponymous firm, are seeing businesses improve. So good for housing. Listening to the same panel though, mortgages are in another universe. "Those who deal with MBS," Burns said, "are in hell." Mark Hanson of Mark Hanson Advisers said the five to six million mortgage modifications in the last few years only keep the homeowner in a debt prison, with little hope in the future. "They are zombie renters in their own homes," Hanson said. "The repeat buyer has died." Pointing to the common thread, speaking earlier, the Federal Housing Administration acting commissioner Carol Galante said the private mortgage market needs to aggressively return in order to sustain these housing gains. After listening to Hanson speak, I'm not feeling very confident. He added that it's not a lack of mortgage credit, but a lack of credit-worthy borrowers. Without a private market for securitization, Burns said, mortgages originated without the aid of the government in some way or another are unlikely to come back in force.
URL to original article: http://www.housingwire.com/rewired/housing-recovery-should-not-be-confused-mortgage-recovery
For further information on Fresno Real Estate check: http://www.londonproperties.com
CoreLogic: 2012 housing recovery is durable
Source: Housingwire
The overall U.S. economy remains lackluster, but gains in housing during 2012 were significant enough to remain durable, says Mark Fleming, chief economist for CoreLogic. Fleming points out in CoreLogic's latest MarketPulse report that housing is now contributing to the U.S. gross domestic product. Supply-and-demand dynamics also are back in line with prices dropping and the supply of new buyers restricted by homeowners trapped in negative-equity situations, he added. "We estimate that 45% of all mortgaged homeowners can be characterized as under-equitied, meaning they have insufficient levels of equity to provide a down payment on a traditional conventional mortgage (less than 20% equity or underwater)," Fleming wrote. Even as the housing market cools heading into the winter, Fleming believes gains made in the first part of the year were significant enough to make the 2012 housing recovery durable. "Given the solid performance of home prices in the spring of 2012, even a stronger-than-expected decline in the fourth quarter is unlikely to wipe away all of the gains made," Fleming noted.
URL to original article: http://www.housingwire.com/content/corelogic-2012-housing-recovery-durable
For further information on Fresno Real Estate check: http://www.londonproperties.com
The overall U.S. economy remains lackluster, but gains in housing during 2012 were significant enough to remain durable, says Mark Fleming, chief economist for CoreLogic. Fleming points out in CoreLogic's latest MarketPulse report that housing is now contributing to the U.S. gross domestic product. Supply-and-demand dynamics also are back in line with prices dropping and the supply of new buyers restricted by homeowners trapped in negative-equity situations, he added. "We estimate that 45% of all mortgaged homeowners can be characterized as under-equitied, meaning they have insufficient levels of equity to provide a down payment on a traditional conventional mortgage (less than 20% equity or underwater)," Fleming wrote. Even as the housing market cools heading into the winter, Fleming believes gains made in the first part of the year were significant enough to make the 2012 housing recovery durable. "Given the solid performance of home prices in the spring of 2012, even a stronger-than-expected decline in the fourth quarter is unlikely to wipe away all of the gains made," Fleming noted.
URL to original article: http://www.housingwire.com/content/corelogic-2012-housing-recovery-durable
For further information on Fresno Real Estate check: http://www.londonproperties.com
Friday, October 5, 2012
US unemployment falls to 7.8 pct., a 44-month low
Source: The Business Journal
Written by CHRISTOPHER S. RUGABER, AP Economics Writer
(AP) — The U.S. unemployment rate fell to 7.8 percent last month, dropping below 8 percent for the first time in nearly four years and giving President Barack Obama a potential boost with the election a month away. The rate dropped from 8.1 percent because the number of people who said they were employed jumped by 873,000 — an encouraging sign for an economy that's been struggling to create enough jobs. The number of unemployed Americans is now 12.1 million, the fewest since January 2009. The Labor Department said employers added 114,000 jobs in September. It also said 86,000 more jobs were added in July and August than the department had initially estimated. Still, many of the jobs the economy added last month were part time. The number of people with part-time jobs who wanted full-time work rose 7.5 percent to 8.6 million, the most since February 2009. But overall, Friday's report dispelled some fears about the job market. Average wages rose. And more people started looking for work. The revisions show employers added 146,000 jobs a month from July through September, up from 67,000 in the previous three months. The 7.8 percent unemployment rate for September matches the rate in January 2009, when Obama took office. In the months after Obama's inauguration, the rate rose sharply and had topped 8 percent for 43 straight months. The decline in unemployment comes at a critical moment for Obama, who is coming off a weak debate performance this week against GOP challenger Mitt Romney. The September employment report may be the last that might sway the remaining undecided voters. The jobs report for October will be released only four days before Election Day. Speaking Friday in Fairfax, Va., Obama said the lower unemployment rate shows that the "country has come too far to turn back now." Romney released a statement Friday pointing out that the number of jobs on employers' payrolls in September was lower than the revised 142,000 for August. He also noted that manufacturing has lost 600,000 jobs since Obama took office. "This is not what a real recovery looks like," Romney said in a statement. But Sal Guatieri, an economist at BMO Capital Markets, said the report signals improvement. "An overall better-than-expected jobs report, consistent with most recent data that suggest the economy is gaining some momentum," Guatieri said in a note to clients. "The sizeable drop in the unemployment rate could lift the president's re-election chances following a post-debate dip." Labor Secretary Hilda Solis was asked on CNBC about suspicions that the Obama administration might have skewed the jobs numbers to aid Obama's re-election prospects. "I'm insulted when I hear that because we have a very professional civil service," Solis said. "I have the highest regard for our professionals that do the calculations at the (Bureau of Labor Statistics). They are trained economists." After the jobs report was released, stocks rose. The Dow Jones industrial average gained 60 points in the first hour of trading before trimming some of its gains. Broader stock indexes also rose. The yield on the 10-year U.S. Treasury note climbed to 1.73 percent from 1.68 percent just before the report. That suggested that investors were more willing to take on risk by shifting money from bonds into stocks. The job market has been improving, sluggishly but steadily. Jobs have been added for 24 straight months. There are now 325,000 more than when Obama took office. The jump in the number of employed Americans that the government reported Friday comes from a survey of 60,000 households that determines the unemployment rate. The government asks a series of questions, by phone or in person. They include: Do you own a business? Did you work for pay? If not, did you provide unpaid work for a family business or farm? (Those who did are considered employed.) Afterward, the survey participants are asked whether they had a job and, if so, whether it was full or part time. The government's definition of unemployed is someone who's out of work and has actively looked for a job in the past four weeks. The government also conducts a second survey of roughly 140,000 businesses to determine the number of jobs businesses created or lost. The September job gains were led by the health care industry, which added 44,000 jobs — the most since February. Transportation and warehousing also showed large gains. The government's revised totals also showed that federal, state and local governments added 63,000 jobs in July and August, compared with earlier estimates that showed cuts in government jobs. The "U.S. could be growing jobs at a marginally faster pace than feared mid-summer," Guy LeBas, a strategist at Janney Capital Markets, wrote in a research note. "Even with the issues in Europe and slowing production in China, U.S. economic activity does not look to be bearing the brunt of global downside, at least not anymore."
URL to original article: http://www.thebusinessjournal.com/news/national/3487-us-unemployment-falls-to-78-pct-a-44-month-low
For further information on Fresno Real Estate checkL http://www.londonproperties.com
Written by CHRISTOPHER S. RUGABER, AP Economics Writer
(AP) — The U.S. unemployment rate fell to 7.8 percent last month, dropping below 8 percent for the first time in nearly four years and giving President Barack Obama a potential boost with the election a month away. The rate dropped from 8.1 percent because the number of people who said they were employed jumped by 873,000 — an encouraging sign for an economy that's been struggling to create enough jobs. The number of unemployed Americans is now 12.1 million, the fewest since January 2009. The Labor Department said employers added 114,000 jobs in September. It also said 86,000 more jobs were added in July and August than the department had initially estimated. Still, many of the jobs the economy added last month were part time. The number of people with part-time jobs who wanted full-time work rose 7.5 percent to 8.6 million, the most since February 2009. But overall, Friday's report dispelled some fears about the job market. Average wages rose. And more people started looking for work. The revisions show employers added 146,000 jobs a month from July through September, up from 67,000 in the previous three months. The 7.8 percent unemployment rate for September matches the rate in January 2009, when Obama took office. In the months after Obama's inauguration, the rate rose sharply and had topped 8 percent for 43 straight months. The decline in unemployment comes at a critical moment for Obama, who is coming off a weak debate performance this week against GOP challenger Mitt Romney. The September employment report may be the last that might sway the remaining undecided voters. The jobs report for October will be released only four days before Election Day. Speaking Friday in Fairfax, Va., Obama said the lower unemployment rate shows that the "country has come too far to turn back now." Romney released a statement Friday pointing out that the number of jobs on employers' payrolls in September was lower than the revised 142,000 for August. He also noted that manufacturing has lost 600,000 jobs since Obama took office. "This is not what a real recovery looks like," Romney said in a statement. But Sal Guatieri, an economist at BMO Capital Markets, said the report signals improvement. "An overall better-than-expected jobs report, consistent with most recent data that suggest the economy is gaining some momentum," Guatieri said in a note to clients. "The sizeable drop in the unemployment rate could lift the president's re-election chances following a post-debate dip." Labor Secretary Hilda Solis was asked on CNBC about suspicions that the Obama administration might have skewed the jobs numbers to aid Obama's re-election prospects. "I'm insulted when I hear that because we have a very professional civil service," Solis said. "I have the highest regard for our professionals that do the calculations at the (Bureau of Labor Statistics). They are trained economists." After the jobs report was released, stocks rose. The Dow Jones industrial average gained 60 points in the first hour of trading before trimming some of its gains. Broader stock indexes also rose. The yield on the 10-year U.S. Treasury note climbed to 1.73 percent from 1.68 percent just before the report. That suggested that investors were more willing to take on risk by shifting money from bonds into stocks. The job market has been improving, sluggishly but steadily. Jobs have been added for 24 straight months. There are now 325,000 more than when Obama took office. The jump in the number of employed Americans that the government reported Friday comes from a survey of 60,000 households that determines the unemployment rate. The government asks a series of questions, by phone or in person. They include: Do you own a business? Did you work for pay? If not, did you provide unpaid work for a family business or farm? (Those who did are considered employed.) Afterward, the survey participants are asked whether they had a job and, if so, whether it was full or part time. The government's definition of unemployed is someone who's out of work and has actively looked for a job in the past four weeks. The government also conducts a second survey of roughly 140,000 businesses to determine the number of jobs businesses created or lost. The September job gains were led by the health care industry, which added 44,000 jobs — the most since February. Transportation and warehousing also showed large gains. The government's revised totals also showed that federal, state and local governments added 63,000 jobs in July and August, compared with earlier estimates that showed cuts in government jobs. The "U.S. could be growing jobs at a marginally faster pace than feared mid-summer," Guy LeBas, a strategist at Janney Capital Markets, wrote in a research note. "Even with the issues in Europe and slowing production in China, U.S. economic activity does not look to be bearing the brunt of global downside, at least not anymore."
URL to original article: http://www.thebusinessjournal.com/news/national/3487-us-unemployment-falls-to-78-pct-a-44-month-low
For further information on Fresno Real Estate checkL http://www.londonproperties.com
Valley gas prices soar overnight
Source: The Business Journal
Gas prices finally shot up throughout California on Friday as analysts predicted while Valley drivers are feeling the same pain. The average price of regular gas across the state jumped nearly 20 cents in some areas to nearly $4.49 a gallon, the highest in the nation, according to AAA's Daily Fuel Guage Report. In the Fresno area the price of a gallon of regular unleaded gasoline went from $4.27 yesterday to $4.40 currently while the average price on the same day last year was $3.79. Meanwhile, diesel prices in the area average $4.47, about the same as yesterday but up from $4.10 last year. The highest recorded average price for unleaded gasoline in the Fresno area was $4.63 a gallon in June 2008 while diesel hit its peak in July 2008 at $5.17. In the Visalia-Tulare-Porterville area, average gasoline prices went from $4.31 yesterday to $4.45 for a gallon of regular unleaded today. Last year, prices averaged $3.85 a gallon. Diesel prices in the area were mostly unchanged at $4.46 but are still up significantly from $4.10 last year. The price of unleaded gasoline in the area spiked in June 2008 at $4.47 a gallon while diesel spiked in the same month at $5.24. The average price of regular gasoline in California was $3.82 a gallon on this day last year while diesel sits at $4.48, up from $4.14 a year ago. Analysts say prices spiked Friday due in part to reduced supply from an ExxonMobil refinery in Torrance that experienced a power outage on Monday. The refinery has since come back online.
URL to original article: http://thebusinessjournal.com/news/transportation/3499-valley-gas-prices-soar-overnight
For further information on Fresno Real Estate check: http://www.londonproperties.com
Gas prices finally shot up throughout California on Friday as analysts predicted while Valley drivers are feeling the same pain. The average price of regular gas across the state jumped nearly 20 cents in some areas to nearly $4.49 a gallon, the highest in the nation, according to AAA's Daily Fuel Guage Report. In the Fresno area the price of a gallon of regular unleaded gasoline went from $4.27 yesterday to $4.40 currently while the average price on the same day last year was $3.79. Meanwhile, diesel prices in the area average $4.47, about the same as yesterday but up from $4.10 last year. The highest recorded average price for unleaded gasoline in the Fresno area was $4.63 a gallon in June 2008 while diesel hit its peak in July 2008 at $5.17. In the Visalia-Tulare-Porterville area, average gasoline prices went from $4.31 yesterday to $4.45 for a gallon of regular unleaded today. Last year, prices averaged $3.85 a gallon. Diesel prices in the area were mostly unchanged at $4.46 but are still up significantly from $4.10 last year. The price of unleaded gasoline in the area spiked in June 2008 at $4.47 a gallon while diesel spiked in the same month at $5.24. The average price of regular gasoline in California was $3.82 a gallon on this day last year while diesel sits at $4.48, up from $4.14 a year ago. Analysts say prices spiked Friday due in part to reduced supply from an ExxonMobil refinery in Torrance that experienced a power outage on Monday. The refinery has since come back online.
URL to original article: http://thebusinessjournal.com/news/transportation/3499-valley-gas-prices-soar-overnight
For further information on Fresno Real Estate check: http://www.londonproperties.com
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