Tuesday
Consumer confidence rebounds
The Conference Board today announced its consumer confidence index, which had declined in April, rebounded in May. The index now stands at 102.2, up from 97.5 in April.
The present situation index increased to 116.7 from 113.8, and the expectations index improved to 92.5 from 86.7.
Consumer confidence improved in May, gaining back nearly all of the ground it lost in April, according to the director of The Conference Board's Consumer Research Center. The present situation index, despite fluctuations in recent months, is more than 26 points higher than a year ago. Consumers' concerns about the economy and jobs have eased. The expectations index, while slightly below year-ago levels, continues to signal economic growth in the months ahead. Consumer assessment of current conditions was more positive in May than in April. Those claiming business conditions are "bad" edged down to 16.8 percent from 17.6 percent. Those claiming conditions are "good" was virtually unchanged at 26.5 percent. The employment picture was mixed. Consumers saying jobs are "hard to get" increased to 24.2 percent from 22.9 percent, but those claiming jobs are "plentiful" rose to 22.6 percent from 20.4 percent.
Consumers expectations for the next six months, which had been losing ground since January, reversed course in May. Those anticipating business conditions to improve increased to 18.6 percent from 17.7 percent, while consumers expecting business conditions to worsen slid to 9.5 percent from 9.9 percent.
The outlook for the labor market was also brighter in May. Those expecting more jobs to become available in the coming months edged up to 14.9 percent from 14 percent, while those expecting fewer jobs declined to 15.9 percent from 18.4 percent. The proportion of consumers anticipating their incomes to improve in the months ahead rose to 17.2 percent from 16.8 percent.
The Consumer Confidence Survey is based on a representative sample of 5,000 U.S. households.
Home sales have again reached new peaks as consumers have seamlessly shifted from the irresistible enticement of record-low mortgage rates to the equally irresistible temptation of purchasing in advance of rising mortgage rates and home prices. More consumers favored buying homes in advance of anticipated increases in mortgage rates and prices in the May survey indicate this when compared to any other time in the last decade.
The present situation index increased to 116.7 from 113.8, and the expectations index improved to 92.5 from 86.7.
Consumer confidence improved in May, gaining back nearly all of the ground it lost in April, according to the director of The Conference Board's Consumer Research Center. The present situation index, despite fluctuations in recent months, is more than 26 points higher than a year ago. Consumers' concerns about the economy and jobs have eased. The expectations index, while slightly below year-ago levels, continues to signal economic growth in the months ahead. Consumer assessment of current conditions was more positive in May than in April. Those claiming business conditions are "bad" edged down to 16.8 percent from 17.6 percent. Those claiming conditions are "good" was virtually unchanged at 26.5 percent. The employment picture was mixed. Consumers saying jobs are "hard to get" increased to 24.2 percent from 22.9 percent, but those claiming jobs are "plentiful" rose to 22.6 percent from 20.4 percent.
Consumers expectations for the next six months, which had been losing ground since January, reversed course in May. Those anticipating business conditions to improve increased to 18.6 percent from 17.7 percent, while consumers expecting business conditions to worsen slid to 9.5 percent from 9.9 percent.
The outlook for the labor market was also brighter in May. Those expecting more jobs to become available in the coming months edged up to 14.9 percent from 14 percent, while those expecting fewer jobs declined to 15.9 percent from 18.4 percent. The proportion of consumers anticipating their incomes to improve in the months ahead rose to 17.2 percent from 16.8 percent.
The Consumer Confidence Survey is based on a representative sample of 5,000 U.S. households.
Home sales have again reached new peaks as consumers have seamlessly shifted from the irresistible enticement of record-low mortgage rates to the equally irresistible temptation of purchasing in advance of rising mortgage rates and home prices. More consumers favored buying homes in advance of anticipated increases in mortgage rates and prices in the May survey indicate this when compared to any other time in the last decade.
Monday
$100 Million real estate fund launched
The National Investor (TNI), has announced the launch of its new USD100 million TNI real estate active fund (REAF) for the Middle East and North Africa region (TNI MENA Real Estate Active Fund).
Open primarily to UAE and GCC based institutional and individual investors, REAF will utilize TNI’s securities expertise and direct real estate experience. The open ended Fund comprises the following portfolio – around 70% to focus on real estate companies with a minimum market capitalisation of USD100 million; up to 25% on real estate IPOs that are taking place in the next 12 months and up to 15% of its assets in debt instruments of MENA real estate companies or cash management products.
Initial investment will target the UAE, Bahrain, Egypt, Jordan, Kuwait, Lebanon, Morocco, Oman, Qatar, Saudi Arabia and Tunisia. The minimum investment for institutions is 150,000 units with additional increments of 15,000 units while individual investors must apply for 25,000 units with increments of 2,500 units. The initial offering price is USD10 per unit.
This will likely lead to huge growth for the real estate industry as it becomes the main driver in these regions economies. Liquidity is probably at a near and all time high in the real estate market, and capital still flows in from individual and institutional investors, domestic and foreign.
New laws are being issued that allow MENA nationals the right to trade property to other MENA nationals and expatriates. We believe that these new ‘Free Hold’ laws will certainly have a positive impact on real estate industry and an enormous flow in real estate development projects.
In addition, REAF provides investors with risk adjusted returns while providing stability for an investor’s portfolio, geographic diversification, liquidity of investments and transparency through monthly and quarterly updates. The Fund will give investors the diversification they need and expose them to our experienced managers who have helped to create a distinguished track record in real estate activities for TNI.
As Fund Managers, TNI has designed the Fund to concentrate on companies that are ‘principally engaged’ in the real estate industry and are listed on local or national securities markets across the MENA region – companies should (i) derive at least 50% of their revenues or profits from the ownership, leasing, management, development, financing or sale of residential, commercial, hospitality or industrial real estate or, (ii) have at least 50% of the value of their assets invested in residential, commercial hospitality or industrial real estate.
Since its launch in 2005, TNI’s real estate division has already secured a number of prestigious real estate investment banking mandates. These include the presently launched Al Surouh AED2.5 billion IPO, the largest in the history of the country, and the recently completed ALDAR Properties AED1.5 billion IPO. Today, TNI is the only investment bank in the UAE with a fully dedicated real estate investment banking team engaged in both real estate investment banking and asset management activities. TNI MENA REAF is the first fund dedicated to real estate to be offered in the GCC. MENA REAF is the first in a series of announcements which are slated to be made by TNI’s real estate division.
Open primarily to UAE and GCC based institutional and individual investors, REAF will utilize TNI’s securities expertise and direct real estate experience. The open ended Fund comprises the following portfolio – around 70% to focus on real estate companies with a minimum market capitalisation of USD100 million; up to 25% on real estate IPOs that are taking place in the next 12 months and up to 15% of its assets in debt instruments of MENA real estate companies or cash management products.
Initial investment will target the UAE, Bahrain, Egypt, Jordan, Kuwait, Lebanon, Morocco, Oman, Qatar, Saudi Arabia and Tunisia. The minimum investment for institutions is 150,000 units with additional increments of 15,000 units while individual investors must apply for 25,000 units with increments of 2,500 units. The initial offering price is USD10 per unit.
This will likely lead to huge growth for the real estate industry as it becomes the main driver in these regions economies. Liquidity is probably at a near and all time high in the real estate market, and capital still flows in from individual and institutional investors, domestic and foreign.
New laws are being issued that allow MENA nationals the right to trade property to other MENA nationals and expatriates. We believe that these new ‘Free Hold’ laws will certainly have a positive impact on real estate industry and an enormous flow in real estate development projects.
In addition, REAF provides investors with risk adjusted returns while providing stability for an investor’s portfolio, geographic diversification, liquidity of investments and transparency through monthly and quarterly updates. The Fund will give investors the diversification they need and expose them to our experienced managers who have helped to create a distinguished track record in real estate activities for TNI.
As Fund Managers, TNI has designed the Fund to concentrate on companies that are ‘principally engaged’ in the real estate industry and are listed on local or national securities markets across the MENA region – companies should (i) derive at least 50% of their revenues or profits from the ownership, leasing, management, development, financing or sale of residential, commercial, hospitality or industrial real estate or, (ii) have at least 50% of the value of their assets invested in residential, commercial hospitality or industrial real estate.
Since its launch in 2005, TNI’s real estate division has already secured a number of prestigious real estate investment banking mandates. These include the presently launched Al Surouh AED2.5 billion IPO, the largest in the history of the country, and the recently completed ALDAR Properties AED1.5 billion IPO. Today, TNI is the only investment bank in the UAE with a fully dedicated real estate investment banking team engaged in both real estate investment banking and asset management activities. TNI MENA REAF is the first fund dedicated to real estate to be offered in the GCC. MENA REAF is the first in a series of announcements which are slated to be made by TNI’s real estate division.
Thursday
Demand for luxury real estate in California
The California cities of Los Angeles, San Diego and San Francisco all posted double-digit gains and record highs in luxury home values in the first quarter of 2005 compared to a year ago, according to the First Republic Prestige Home Index by First Republic Bank.
Los Angeles values jumped 3.4 percent from the fourth quarter of 2004 to the first quarter of 2005 and rose 23.1 percent from the first quarter a year ago. The average luxury home in Los Angeles is now a record $2 million, up $384,000 from a year ago.
San Diego values increased 7 percent from the fourth quarter of 2004 to the first quarter of 2005, and were up 20.4 percent from the first quarter a year ago. The average luxury home in San Diego is now a record $2 million, up $334,000 from a year ago.
San Francisco Bay Area values rose 6 percent from the fourth quarter of 2004 to the first quarter of 2005 and gained 13.9 percent from a year ago. The average luxury home in San Francisco is now a record $2.7 million, up $329,000 from the first quarter a year ago.
In the first quarter of 2005, luxury home values set records in California due to low interest rates, limited supply, continued demand, and the traditional increase in activity this time of year, according to CEO of First Republic Bank. While 2005 is off to a strong start, driven in part by seasonal buying, it is unlikely values will continue appreciating as rapidly as they have over the past few years.
Los Angeles values jumped 3.4 percent from the fourth quarter of 2004 to the first quarter of 2005 and rose 23.1 percent from the first quarter a year ago. The average luxury home in Los Angeles is now a record $2 million, up $384,000 from a year ago.
San Diego values increased 7 percent from the fourth quarter of 2004 to the first quarter of 2005, and were up 20.4 percent from the first quarter a year ago. The average luxury home in San Diego is now a record $2 million, up $334,000 from a year ago.
San Francisco Bay Area values rose 6 percent from the fourth quarter of 2004 to the first quarter of 2005 and gained 13.9 percent from a year ago. The average luxury home in San Francisco is now a record $2.7 million, up $329,000 from the first quarter a year ago.
In the first quarter of 2005, luxury home values set records in California due to low interest rates, limited supply, continued demand, and the traditional increase in activity this time of year, according to CEO of First Republic Bank. While 2005 is off to a strong start, driven in part by seasonal buying, it is unlikely values will continue appreciating as rapidly as they have over the past few years.
Naples Florida tops list for second homes
Naples town in Florida, maintained its position as the number one most searched town for second homes during April, EscapeHomes.com announced this week.
EscapeHomes.com, which offers real estate tools and listings for consumers seeking second homes, created the Second Home Market Index to provided information on trends and consumer interest while cluing consumers to some potential markets for real estate investment.
South Padre Island, Texas, ranked second in the April index, followed by Orlando, Fla.; Myrtle Beach, S.C.; Park City, Utah; Destin, Fla.; St. Augustine, Fla.; Murphy, N.C.; Santa Barbara, Calif.; and Napa, Calif. The results are based on more than 200,000 property searches made on EscapeHomes.com in March.
Naples and South Padre Island remained the two most searched locations in April, as they were in March. Orlando moved up two positions while Destin dropped two positions. New to this month's index are Murphy, Santa Barbara and St. Augustine. The most noticeable shift in the April index was Park City, which moved up five spots on the index. Park City is an active and growing four-season resort community only 30 minutes from Salt Lake City and the Salt Lake City International Airport. Along with three world-class ski resorts, we offer five golf courses, fishing, boating, and seemingly endless miles of mountain biking and hiking trails.
EscapeHomes.com, which offers real estate tools and listings for consumers seeking second homes, created the Second Home Market Index to provided information on trends and consumer interest while cluing consumers to some potential markets for real estate investment.
South Padre Island, Texas, ranked second in the April index, followed by Orlando, Fla.; Myrtle Beach, S.C.; Park City, Utah; Destin, Fla.; St. Augustine, Fla.; Murphy, N.C.; Santa Barbara, Calif.; and Napa, Calif. The results are based on more than 200,000 property searches made on EscapeHomes.com in March.
Naples and South Padre Island remained the two most searched locations in April, as they were in March. Orlando moved up two positions while Destin dropped two positions. New to this month's index are Murphy, Santa Barbara and St. Augustine. The most noticeable shift in the April index was Park City, which moved up five spots on the index. Park City is an active and growing four-season resort community only 30 minutes from Salt Lake City and the Salt Lake City International Airport. Along with three world-class ski resorts, we offer five golf courses, fishing, boating, and seemingly endless miles of mountain biking and hiking trails.
Wednesday
New home sales up
Sales of new single-family houses in April were at a seasonally adjusted annual rate of 1.32 million, the U.S. Census Bureau and the Department of Housing and Urban Development reported today. This is about 0.2 percent above the revised March rate of 1.31 million and is about 13.3 percent above the revised April 2004 estimate of 1.16 million.
The median sales price of new houses sold in April was $230,800, up 3.8 percent from $222,300 in April 2004. The average sales price in April 2005 was $283,500, up 5.3 percent from $269,300 in April 2004. The seasonally adjusted estimate of new houses for sale at the end of April was 440,000, which represents a supply of 4.1 months at the current sales rate. The seasonally adjusted rate is used to smooth out monthly variations in sales that are due to seasonal fluctuations.
The seasonally adjusted rate of new houses sold and for sale jumped about 28.9 percent in the Northeast, 20.2 percent in the South, 6.4 percent in the West and 1 percent in the Midwest from April 2004 to April 2005.
Of the 122,000 new houses sold in April, about 50,000 were not yet started, 43,000 were under construction and 29,000 were completed. And of the 437,000 new homes for sale at the end of the reporting period, about 88,000 were not yet started, 250,000 were under construction, and 99,000 were completed.
On average, the preliminary seasonally adjusted estimate of total sales is revised about 3 percent. Changes in sales price data reflect changes in the distribution of houses by region, size, etc., as well as changes in the prices of houses with identical characteristics.
The median sales price of new houses sold in April was $230,800, up 3.8 percent from $222,300 in April 2004. The average sales price in April 2005 was $283,500, up 5.3 percent from $269,300 in April 2004. The seasonally adjusted estimate of new houses for sale at the end of April was 440,000, which represents a supply of 4.1 months at the current sales rate. The seasonally adjusted rate is used to smooth out monthly variations in sales that are due to seasonal fluctuations.
The seasonally adjusted rate of new houses sold and for sale jumped about 28.9 percent in the Northeast, 20.2 percent in the South, 6.4 percent in the West and 1 percent in the Midwest from April 2004 to April 2005.
Of the 122,000 new houses sold in April, about 50,000 were not yet started, 43,000 were under construction and 29,000 were completed. And of the 437,000 new homes for sale at the end of the reporting period, about 88,000 were not yet started, 250,000 were under construction, and 99,000 were completed.
On average, the preliminary seasonally adjusted estimate of total sales is revised about 3 percent. Changes in sales price data reflect changes in the distribution of houses by region, size, etc., as well as changes in the prices of houses with identical characteristics.
Tuesday
Slower real estate price growth predicted by Greenspan
Alan Greenspan, chairman of the Federal Reserve, invoked the B-word Friday, acknowledging that the housing market contains "a lot of local bubbles" with "unsustainable" price gains, media reports said.
"Without calling the overall national issue a bubble, it's pretty clear that it's an unsustainable underlying pattern," Greenspan told the Economic Club of New York at the Hilton New York hotel, according to reports.
However, the Federal Reserve chair also said significant price declines are unlikely, reports said.
Greenspan pointed to a big increase in speculation in homes, particularly in second homes, and acknowledged concerns over "froth" in the market, according to reports, reports said. As a result of this, there are "a lot of local bubbles" around the country, Greenspan said, according to reports.
Even if housing prices do fall, the drop won't hit most homeowners hard because of the huge amount of equity already in their homes, Greenspan reportedly told more than 1,000 onlookers at a meeting of the New York Economic Club.
"There are a number of things which I think suggest, at minimum, that there's a little froth in this market," Greenspan reportedly said, to laughs in the audience.
Many have expressed concern over the current red-hot housing market. Analysts have found some reason to be concerned – increasing debt, fast-rising home prices in some markets, a larger share of adjustable-rate mortgages, and a higher share of home-price-to-income and home-price-to-rent ratios in some markets. Financial scandals that have plagued mortgage giants Fannie Mae and Freddie Mac could lead to some industry-shaking reforms, as the trade deficit is swelling, oil prices are increasing, and the value of the dollar is dropping.
"Without calling the overall national issue a bubble, it's pretty clear that it's an unsustainable underlying pattern," Greenspan told the Economic Club of New York at the Hilton New York hotel, according to reports.
However, the Federal Reserve chair also said significant price declines are unlikely, reports said.
Greenspan pointed to a big increase in speculation in homes, particularly in second homes, and acknowledged concerns over "froth" in the market, according to reports, reports said. As a result of this, there are "a lot of local bubbles" around the country, Greenspan said, according to reports.
Even if housing prices do fall, the drop won't hit most homeowners hard because of the huge amount of equity already in their homes, Greenspan reportedly told more than 1,000 onlookers at a meeting of the New York Economic Club.
"There are a number of things which I think suggest, at minimum, that there's a little froth in this market," Greenspan reportedly said, to laughs in the audience.
Many have expressed concern over the current red-hot housing market. Analysts have found some reason to be concerned – increasing debt, fast-rising home prices in some markets, a larger share of adjustable-rate mortgages, and a higher share of home-price-to-income and home-price-to-rent ratios in some markets. Financial scandals that have plagued mortgage giants Fannie Mae and Freddie Mac could lead to some industry-shaking reforms, as the trade deficit is swelling, oil prices are increasing, and the value of the dollar is dropping.
California's median home price crosses half million
The median price of an existing real estate home in California in April set a record, and sales increased over the same period a year ago, the California Association of Realtors reported today.
In April, an existing, single-family detached home in California had a median price of $509,230, a 12.5 percent increase over the revised $452,680 median for April 2004, C.A.R. reported. The April 2005 median price increased 2.6 percent compared with March's revised $496,550 median price.
The median price of a home in California topped a half-million dollars for the first time in April, reflecting the continuing demand for housing and the ongoing supply shortage according to C.A.R. President. Home prices increased by double digits in nearly every region of the state, rising 37.9 percent in the more affordable High Desert region, which includes the Antelope Valley, Barstow, and Victor Valley areas.
Statewide, the 10 cities and communities with the highest median home prices in California during April 2005 were: Los Altos, $1,762,500; Saratoga, $1,525,000; Laguna Beach, $1,485,000; Manhattan Beach, $1,405,000; Newport Beach, $1,297,500; Carmel, $1,294,000; La Canada-Flintridge, $1,290,000; Burlingame, $1,250,000; Calabasas, $1,225,000; Woodside, $1,100,000; and Rancho Palos Verdes, $1,100,000.
Statewide, the 10 cities and communities with the greatest median-home-price increases in April 2005 compared with the same period a year ago were: Reedley, 68.8 percent; Colton, 64.7 percent; Twentynine Palms, 63 percent; Atwater, 58.7 percent; Rohnert Park, 57.5 percent; Laguna Hills, 53.3 percent; Norco, 51.6 percent; La Canada-Flintridge, 50.9 percent; Adelanto, 49.1 percent; and Victorville, 45.8 percent.
Closed escrow sales of existing, single-family detached homes in California totaled 658,060 in April at a seasonally adjusted annualized rate, according to information collected by C.A.R. Statewide home resale activity increased 2.7 percent from the 640,710 sales pace recorded in April 2004.
The statewide sales figure represents what the total number of homes sold during 2005 would be if sales maintained the April pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.
"Year-to-date sales are up 5.1 percent compared to a year ago," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "Although interest rates remain near their historical lows, consumers are clearly concerned about the impact rising rates will have on their ability to purchase a home."
In April, an existing, single-family detached home in California had a median price of $509,230, a 12.5 percent increase over the revised $452,680 median for April 2004, C.A.R. reported. The April 2005 median price increased 2.6 percent compared with March's revised $496,550 median price.
The median price of a home in California topped a half-million dollars for the first time in April, reflecting the continuing demand for housing and the ongoing supply shortage according to C.A.R. President. Home prices increased by double digits in nearly every region of the state, rising 37.9 percent in the more affordable High Desert region, which includes the Antelope Valley, Barstow, and Victor Valley areas.
Statewide, the 10 cities and communities with the highest median home prices in California during April 2005 were: Los Altos, $1,762,500; Saratoga, $1,525,000; Laguna Beach, $1,485,000; Manhattan Beach, $1,405,000; Newport Beach, $1,297,500; Carmel, $1,294,000; La Canada-Flintridge, $1,290,000; Burlingame, $1,250,000; Calabasas, $1,225,000; Woodside, $1,100,000; and Rancho Palos Verdes, $1,100,000.
Statewide, the 10 cities and communities with the greatest median-home-price increases in April 2005 compared with the same period a year ago were: Reedley, 68.8 percent; Colton, 64.7 percent; Twentynine Palms, 63 percent; Atwater, 58.7 percent; Rohnert Park, 57.5 percent; Laguna Hills, 53.3 percent; Norco, 51.6 percent; La Canada-Flintridge, 50.9 percent; Adelanto, 49.1 percent; and Victorville, 45.8 percent.
Closed escrow sales of existing, single-family detached homes in California totaled 658,060 in April at a seasonally adjusted annualized rate, according to information collected by C.A.R. Statewide home resale activity increased 2.7 percent from the 640,710 sales pace recorded in April 2004.
The statewide sales figure represents what the total number of homes sold during 2005 would be if sales maintained the April pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.
"Year-to-date sales are up 5.1 percent compared to a year ago," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "Although interest rates remain near their historical lows, consumers are clearly concerned about the impact rising rates will have on their ability to purchase a home."
Friday
Long-Term Mortgage Rates Lowest
Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market SurveySM (PMMSSM) in which the 30-year fixed-rate mortgage (FRM) averaged 5.71 percent, with an average 0.7 point, for the week ending May 19, 2005, down from last week when it averaged 5.77 percent. Last year at this time, the 30-year FRM averaged 6.30 percent.
The average for the 15-year FRM this week is 5.27 percent, with an average 0.7 point, also down from last week when it averaged 5.33 percent. A year ago, the 15-year FRM averaged 5.67 percent. Five-Year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.07 percent this week, with an average 0.7 point, falling from 5.21 percent last week. There is no annual historical information for last year since Freddie Mac only began tracking this mortgage rate at the start of this year.
One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 4.26 percent this week, with an average 0.7 point, up from last week when it averaged 4.23 percent. At this time last year, the one-year ARM averaged 3.99 percent.
It's remarkable how mortgage rates have remained so low for so long, according to Frank Nothaft, vice president and chief economist. "But as long as inflation is held in check, there is little or no pressure to push mortgage rates higher. And at the moment, despite high fuel prices, core inflation does indeed seem to be a nonevent. Continuing low rates will keep the housing industry abuzz. As a matter of fact, both new and existing housing sales figures in April are expected to come in at or near record levels".
The average for the 15-year FRM this week is 5.27 percent, with an average 0.7 point, also down from last week when it averaged 5.33 percent. A year ago, the 15-year FRM averaged 5.67 percent. Five-Year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.07 percent this week, with an average 0.7 point, falling from 5.21 percent last week. There is no annual historical information for last year since Freddie Mac only began tracking this mortgage rate at the start of this year.
One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 4.26 percent this week, with an average 0.7 point, up from last week when it averaged 4.23 percent. At this time last year, the one-year ARM averaged 3.99 percent.
It's remarkable how mortgage rates have remained so low for so long, according to Frank Nothaft, vice president and chief economist. "But as long as inflation is held in check, there is little or no pressure to push mortgage rates higher. And at the moment, despite high fuel prices, core inflation does indeed seem to be a nonevent. Continuing low rates will keep the housing industry abuzz. As a matter of fact, both new and existing housing sales figures in April are expected to come in at or near record levels".
Facing foreclosure ?
Real Estate Home owners who are facing foreclosure have a new alternative in loss mitigation services through a recently launched nationwide service called HomeOwnerSurvival.com.
"Many of our customers have worked and saved many years to own their most important financial investment – their home," said Greg Weatherly, director of marketing and partner with HomeOwnerSurvival.Com.
The company aims to help home owners who are risking foreclosure keep their homes, Weatherly added. "While we offer no guarantee that we can save their home...we do everything in our power to exhaust the first option of foreclosure/loss mitigation," he said.
Home owners can apply for the service for free online and via the company's foreclosure mitigation representative network. The network includes more than 50 representatives who are Realtors, lenders, CPAs and financial planners trained to education home owners on their options.
HomeOwnerSurvival.com allows representatives to select from several mitigation partners. The company also offers secondary options through its network for home owners who are looking to either list and sell within their local market or through a private investor.
"Many of our customers have worked and saved many years to own their most important financial investment – their home," said Greg Weatherly, director of marketing and partner with HomeOwnerSurvival.Com.
The company aims to help home owners who are risking foreclosure keep their homes, Weatherly added. "While we offer no guarantee that we can save their home...we do everything in our power to exhaust the first option of foreclosure/loss mitigation," he said.
Home owners can apply for the service for free online and via the company's foreclosure mitigation representative network. The network includes more than 50 representatives who are Realtors, lenders, CPAs and financial planners trained to education home owners on their options.
HomeOwnerSurvival.com allows representatives to select from several mitigation partners. The company also offers secondary options through its network for home owners who are looking to either list and sell within their local market or through a private investor.
Tuesday
Increasing the value of a property
Giving Old Kitchens and Bathrooms an Inexpensive Facelift
By Pete Youngs
In my long career of being a general contractor turned investor, it has been my goal to teach people as many ways as possible to get the highest quality work and results for the lowest possible price. Bringing up the value of an investment property and creating equity are two major factors in building wealth. More profit is lost in the fix up cost of real estate than any other aspect of investing. Therefore making a property look its best without losing your shirt is essential to the rehab business.
One of the most common things I have run across is kitchens and bathrooms with those old stained cabinets. To give the house an inexpensive facelift, I use the following materials and techniques to renew the cabinets to a fresh new and updated look. You may also use these same techniques to do stained trim work, stained doors, windows and paneling. I prefer a white semi-gloss look for updating older homes and the new look can be done for under $100 if you do the following steps from my Rehab 101 system.
First step is to remove all the doorknobs or handles to the cabinets and drawers. Then get a good sponge or cheesecloth and using white vinegar or distilled vinegar full strength, clean all surfaces. This step eliminates oil from cooking over the years and removes any greasy buildup on the surface.
Step two is to get a sanding sponge and use some 200-grit sandpaper to lightly go over all surfaces. You are not trying to remove the stain color, you are just taking the gloss off of all the stained area. Once you are done with this, take a damp cloth or sponge to remove any dust from your project.
The next step is to use an oil based primer such as KILZ or BIN brand and give all surfaces to be painted a good seal coat. This seals in any oils that will secrete through paints in time if not primed right. After your primer dries we will use 100% acrylic latex paint to go over all cabinets and drawers.
I want to stress that I always suggest good quality paint, brushes and materials because you have not saved money or time if you have to do a project twice.
O.K., with my quality brush and roller nap (3/8 inch nap) I will cut in the brushed areas and roll the other areas like normal painting, but here’s a great tip…I use Sherwin Williams Pro Classic latex semi-gloss as my finish coat. The reason I choose to use the Pro Classic is that no matter how it is applied, brush-roller or spray, it is a self-leveling paint. What that means is that as it dries, it flattens out smooth like an oil base paint and leaves a smooth look with no brush marks.
My color choice is always white, because clean white cabinets in kitchens and bathrooms make them look brand new and also make the area look larger. Also since it’s latex, all my clean up is with simple soap and water. Here’s another tip…if your ever having to prime a surface or wall before painting, and your changing the color, have your primer tinted ½ strength of the color your finish coat will be tinted. This eliminates an extra coat of paint trying to cover up white primer. Last, replace all knobs and handles with fresh new hardware for great results, saving hundreds over replacing old cabinets.
by Pete Youngs
About the author
Pete Youngs has been a general contractor/investor for almost twenty years. For the past seven years he has taught a foreclosure rehab bootcamp that he and his brother Tony had designed and together have taught thousands from all over the U.S. and abroad. Pete has also shared the stage at national conventions and seminars with all the top names in their fields of expertise. He is also a highly sought after speaker at real estate investment clubs seminars and conventions. His expertise is teaching others how to rehab properties for 50 to 75% below retail costs. He has authored many courses, books, tapes and videos on the subject of rehabbing as well as termite and property inspections. To get more information on Pete Youngs courses visit the site here.
By Pete Youngs
In my long career of being a general contractor turned investor, it has been my goal to teach people as many ways as possible to get the highest quality work and results for the lowest possible price. Bringing up the value of an investment property and creating equity are two major factors in building wealth. More profit is lost in the fix up cost of real estate than any other aspect of investing. Therefore making a property look its best without losing your shirt is essential to the rehab business.
One of the most common things I have run across is kitchens and bathrooms with those old stained cabinets. To give the house an inexpensive facelift, I use the following materials and techniques to renew the cabinets to a fresh new and updated look. You may also use these same techniques to do stained trim work, stained doors, windows and paneling. I prefer a white semi-gloss look for updating older homes and the new look can be done for under $100 if you do the following steps from my Rehab 101 system.
First step is to remove all the doorknobs or handles to the cabinets and drawers. Then get a good sponge or cheesecloth and using white vinegar or distilled vinegar full strength, clean all surfaces. This step eliminates oil from cooking over the years and removes any greasy buildup on the surface.
Step two is to get a sanding sponge and use some 200-grit sandpaper to lightly go over all surfaces. You are not trying to remove the stain color, you are just taking the gloss off of all the stained area. Once you are done with this, take a damp cloth or sponge to remove any dust from your project.
The next step is to use an oil based primer such as KILZ or BIN brand and give all surfaces to be painted a good seal coat. This seals in any oils that will secrete through paints in time if not primed right. After your primer dries we will use 100% acrylic latex paint to go over all cabinets and drawers.
I want to stress that I always suggest good quality paint, brushes and materials because you have not saved money or time if you have to do a project twice.
O.K., with my quality brush and roller nap (3/8 inch nap) I will cut in the brushed areas and roll the other areas like normal painting, but here’s a great tip…I use Sherwin Williams Pro Classic latex semi-gloss as my finish coat. The reason I choose to use the Pro Classic is that no matter how it is applied, brush-roller or spray, it is a self-leveling paint. What that means is that as it dries, it flattens out smooth like an oil base paint and leaves a smooth look with no brush marks.
My color choice is always white, because clean white cabinets in kitchens and bathrooms make them look brand new and also make the area look larger. Also since it’s latex, all my clean up is with simple soap and water. Here’s another tip…if your ever having to prime a surface or wall before painting, and your changing the color, have your primer tinted ½ strength of the color your finish coat will be tinted. This eliminates an extra coat of paint trying to cover up white primer. Last, replace all knobs and handles with fresh new hardware for great results, saving hundreds over replacing old cabinets.
by Pete Youngs
About the author
Pete Youngs has been a general contractor/investor for almost twenty years. For the past seven years he has taught a foreclosure rehab bootcamp that he and his brother Tony had designed and together have taught thousands from all over the U.S. and abroad. Pete has also shared the stage at national conventions and seminars with all the top names in their fields of expertise. He is also a highly sought after speaker at real estate investment clubs seminars and conventions. His expertise is teaching others how to rehab properties for 50 to 75% below retail costs. He has authored many courses, books, tapes and videos on the subject of rehabbing as well as termite and property inspections. To get more information on Pete Youngs courses visit the site here.
Pitfalls of predatory lending practices
The National Association of Realtors is launching a new consumer education campaign through its membership to help consumers avoid the pitfalls of predatory lending practices that often afflict potential home buyers with credit problems in today’s hot real estate market.
The object of the policy approved by the NAR Board of Directors is to develop standards that balance continued valid uses of subprime loans for borrowers with imperfect credit while avoiding “toxic” loans and abusive lending practices.
'Realtors are the first stop for consumers in the real estate transaction, and we’re taking a strong stance against the practice by some unconscionable lenders to trap consumers into toxic loans that benefit the lender and not the consumer. Home buyers should get themselves prequalified for fair and affordable financing, and Realtors can educate them on the consequences of some subprime loans that work against the home buyers’ best interests,” said Al Mansell, president of NAR and CEO of Coldwell Banker Residential Brokerage in Salt Lake City.
“Because of federal preemption by the Office of the Comptroller of the Currency of state lending laws regarding large, federally chartered banks, and Congress’ lack of response to protect consumers, it is even more important that consumers consult with Realtors about home financing,” Mansell said. Realtors are ready to refer their customers and clients, when appropriate, to reputable credit and housing counselors, he said.
The object of the policy approved by the NAR Board of Directors is to develop standards that balance continued valid uses of subprime loans for borrowers with imperfect credit while avoiding “toxic” loans and abusive lending practices.
'Realtors are the first stop for consumers in the real estate transaction, and we’re taking a strong stance against the practice by some unconscionable lenders to trap consumers into toxic loans that benefit the lender and not the consumer. Home buyers should get themselves prequalified for fair and affordable financing, and Realtors can educate them on the consequences of some subprime loans that work against the home buyers’ best interests,” said Al Mansell, president of NAR and CEO of Coldwell Banker Residential Brokerage in Salt Lake City.
“Because of federal preemption by the Office of the Comptroller of the Currency of state lending laws regarding large, federally chartered banks, and Congress’ lack of response to protect consumers, it is even more important that consumers consult with Realtors about home financing,” Mansell said. Realtors are ready to refer their customers and clients, when appropriate, to reputable credit and housing counselors, he said.
Real estate home builder confidence ..
Real Estate Home Builder confidence rose slightly this month, up three points to 70 on a seasonally adjusted annual basis, according to the National Association of Home Builders & Wells Fargo Housing Market Index released Monday.
Home builders have maintained a confidence range between 67-71 for over a year, aided by home buyer demand for new single-family homes, continued low mortgage rates and an improving job market, the association reported.
The index is derived from a monthly survey of builders that NAHB has been conducting for about 20 years. Each month, real estate home builders report current sales of single-family homes and prospects for sales in the next six months as either “good,” “fair” or “poor.” They also rate traffic of prospective home buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view sales conditions as good than poor.
Home builders rated the present state of single-family sales at 76 in May, the next six months in single-family home sales as 77, and the traffic of prospective home buyers at 53.
The component index gauging current single-family home sales rose three points to 76 while the component index gauging sales expectations for the next six months and the component gauging traffic of prospective home buyers were 77 and 53, respectively.
Home builders have seen an up-tick in traffic and home sales brought on by improving economic conditions and real estate mortgage rates continue to remain at affordable levels. They have confidence in the overall real estate housing market and expect home sales to stay strong for the next six months, according to NAHB President, a custom home builder from Ketchum, Idaho.
Home builders obviously continue to see strong buyer demand for single-family homes according to NAHB Chief Economist. With unsold inventories in good shape, housing starts should be solid in coming months.
Home builders have maintained a confidence range between 67-71 for over a year, aided by home buyer demand for new single-family homes, continued low mortgage rates and an improving job market, the association reported.
The index is derived from a monthly survey of builders that NAHB has been conducting for about 20 years. Each month, real estate home builders report current sales of single-family homes and prospects for sales in the next six months as either “good,” “fair” or “poor.” They also rate traffic of prospective home buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view sales conditions as good than poor.
Home builders rated the present state of single-family sales at 76 in May, the next six months in single-family home sales as 77, and the traffic of prospective home buyers at 53.
The component index gauging current single-family home sales rose three points to 76 while the component index gauging sales expectations for the next six months and the component gauging traffic of prospective home buyers were 77 and 53, respectively.
Home builders have seen an up-tick in traffic and home sales brought on by improving economic conditions and real estate mortgage rates continue to remain at affordable levels. They have confidence in the overall real estate housing market and expect home sales to stay strong for the next six months, according to NAHB President, a custom home builder from Ketchum, Idaho.
Home builders obviously continue to see strong buyer demand for single-family homes according to NAHB Chief Economist. With unsold inventories in good shape, housing starts should be solid in coming months.
Friday
Realtors and the online listings rule
The nation's largest organization of real estate agents and brokers has retreated from imposing a rule governing online property listings that has caught the attention of federal antitrust regulators. The National Assn. of Realtors agreed to consider crafting a new online listings policy that would pass regulatory muster. The decision came after talks in Washington with lawyers for the Justice Department.
Regulators have been pressing the Realtors group to amend a rule set to take effect in July that would allow brokers to withhold their real estate listings from online broker sites. These listings are part of a multiple listing service, a compilation of homes for sale by brokers who are members of local Boards of Realtors, and for decades were available only to licensed real estate agents.
The Internet obviously has changed that and the question of who controls the data has taken on more interest as Web-based brokerages are testing creative ways of selling real estate services, often at discounted rates.
Regulators have been pressing the Realtors group to amend a rule set to take effect in July that would allow brokers to withhold their real estate listings from online broker sites. These listings are part of a multiple listing service, a compilation of homes for sale by brokers who are members of local Boards of Realtors, and for decades were available only to licensed real estate agents.
The Internet obviously has changed that and the question of who controls the data has taken on more interest as Web-based brokerages are testing creative ways of selling real estate services, often at discounted rates.
Real estate sales hot in Florida
Sales of Florida's existing single-family homes in the first quarter grew 7 percent from a year ago, according to the Florida Association of Realtors, with Realtors reporting 57,699 sales, up from 53,971 during the same period last year.
Following a three-month trend, the statewide median sales price once again topped $200,000, rising 27 percent to $207,000 in the first quarter; a year ago, it was $163,600. In 2000, the first-quarter statewide median sales price was $109,600, which is an increase of about 88.9 percent over the five-year period.
Among the state's larger markets, the Fort Myers-Cape Coral metropolitan statistical area (MSA) reported a dramatic 33 percent gain in home sales for the quarter with 3,024 homes sold, compared with 2,272 homes sold a year ago. The market's median sales price increased 37 percent to $236,000; a year ago, it was $171,800.
Other larger Florida markets reporting a boost in resales activity for the quarter compared to first quarter 2004 include: Tampa-St. Petersburg-Clearwater, where 11,740 homes changed hands for a 16 percent increase; and Jacksonville, where 3,870 homes sold for a 13 percent gain. The median home price also rose in those markets over the same period: in Tampa-St. Petersburg-Clearwater, 23 percent to $176,400; and in Jacksonville, 22 percent to $173,400.
Among the state's small-to-medium-size markets, the Pensacola MSA posted a 26 percent increase in resales for the quarter, with 1,477 homes changing hands, compared with 1,173 homes sold a year ago. Over the same period, the market's median home price rose 18 percent to $143,800; a year ago, it was $121,500.
Other smaller markets reporting strong gains in existing-home sales in the first quarter of 2005 include: Gainesville, where 840 homes sold for a 38 percent jump; and Fort Walton Beach, where 1,218 homes sold for a 19 percent increase. The median sales price also rose in those markets: in Fort Walton Beach, 29 percent to $220,300; and in Gainesville, 8 percent to $160,000.
Following a three-month trend, the statewide median sales price once again topped $200,000, rising 27 percent to $207,000 in the first quarter; a year ago, it was $163,600. In 2000, the first-quarter statewide median sales price was $109,600, which is an increase of about 88.9 percent over the five-year period.
Among the state's larger markets, the Fort Myers-Cape Coral metropolitan statistical area (MSA) reported a dramatic 33 percent gain in home sales for the quarter with 3,024 homes sold, compared with 2,272 homes sold a year ago. The market's median sales price increased 37 percent to $236,000; a year ago, it was $171,800.
Other larger Florida markets reporting a boost in resales activity for the quarter compared to first quarter 2004 include: Tampa-St. Petersburg-Clearwater, where 11,740 homes changed hands for a 16 percent increase; and Jacksonville, where 3,870 homes sold for a 13 percent gain. The median home price also rose in those markets over the same period: in Tampa-St. Petersburg-Clearwater, 23 percent to $176,400; and in Jacksonville, 22 percent to $173,400.
Among the state's small-to-medium-size markets, the Pensacola MSA posted a 26 percent increase in resales for the quarter, with 1,477 homes changing hands, compared with 1,173 homes sold a year ago. Over the same period, the market's median home price rose 18 percent to $143,800; a year ago, it was $121,500.
Other smaller markets reporting strong gains in existing-home sales in the first quarter of 2005 include: Gainesville, where 840 homes sold for a 38 percent jump; and Fort Walton Beach, where 1,218 homes sold for a 19 percent increase. The median sales price also rose in those markets: in Fort Walton Beach, 29 percent to $220,300; and in Gainesville, 8 percent to $160,000.
Wednesday
Real estate purchases hit new high
Overall mortgage applications reached a record level last week, going up 9.4 percent on a seasonally adjusted basis from the week before, according to the Mortgage Bankers Association's weekly survey.
The MBA seasonally adjusted purchase index increased by 9.4 percent to 526.2 from 482.5 percent the previous week. The seasonally adjusted refinance index increased by 9.8 percent to 2,263.3 from 2,061.2 one week earlier.
Strong support for home sales has been provided by a recent decline in interest rates, a strong jobs market, and nice weather during the spring-buying season, according to the MBA's senior vice president and chief economist, in a statement. These factors have led to a record level of purchase applications on both weekly and four-week rolling averages.
The refinance share of mortgage activity increased to 39.2 percent of total applications, from 39.1 percent the previous week. The adjustable-rate-mortgage share of activity increased to 35.3 percent of total applications, from 33.4 percent the previous week.
The average contract interest rate for 30-year fixed-rate mortgages increased to 5.77 percent from 5.74 percent one week earlier. Points including the origination fee increased to 1.25 from 1.18 for 80 percent loan-to-value loans.
The average contract interest rate for 15-year fixed-rate mortgages increased to 5.34 percent from 5.31 percent one week earlier. Points including the origination fee increased to 1.26 from 1.22 for 80 percent loan-to-value loans.
The average contract interest rate for one-year adjustable-rate mortgages increased to 4.2 percent from 4.14 percent one week earlier. Points including the origination fee decreased to 0.93 from 0.98 for 80 percent loan-to-value loans.
The MBA seasonally adjusted purchase index increased by 9.4 percent to 526.2 from 482.5 percent the previous week. The seasonally adjusted refinance index increased by 9.8 percent to 2,263.3 from 2,061.2 one week earlier.
Strong support for home sales has been provided by a recent decline in interest rates, a strong jobs market, and nice weather during the spring-buying season, according to the MBA's senior vice president and chief economist, in a statement. These factors have led to a record level of purchase applications on both weekly and four-week rolling averages.
The refinance share of mortgage activity increased to 39.2 percent of total applications, from 39.1 percent the previous week. The adjustable-rate-mortgage share of activity increased to 35.3 percent of total applications, from 33.4 percent the previous week.
The average contract interest rate for 30-year fixed-rate mortgages increased to 5.77 percent from 5.74 percent one week earlier. Points including the origination fee increased to 1.25 from 1.18 for 80 percent loan-to-value loans.
The average contract interest rate for 15-year fixed-rate mortgages increased to 5.34 percent from 5.31 percent one week earlier. Points including the origination fee increased to 1.26 from 1.22 for 80 percent loan-to-value loans.
The average contract interest rate for one-year adjustable-rate mortgages increased to 4.2 percent from 4.14 percent one week earlier. Points including the origination fee decreased to 0.93 from 0.98 for 80 percent loan-to-value loans.
Monday
Real estate agents home sales forecast
A US real estate agents trade group on Monday forecast sales of existing homes this year to ease only slightly from the 2004 record high 6.784 million units. The National Association of Realtors said higher oil prices are having a dampening effect on economic growth, and as a result long-term interest rates will only rise modestly.
The Real Estate Agents group said it expects 6.700 million existing home sales this year, down 1.2 percent from the year before. New home sales should decline by 2.5 percent to 1.17 million, also just under the record high set in 2004, the Realtors said.
The essentially sideways movement in mortgage interest rates recently has defied the consensus of earlier forecasts, with only a modest uptrend detectable over time, according to NAR Chief Economist. The simple effect, in an economy with an improved labor market, is a higher demand for homes.
The Realtors do not expect rates for the popular 30-year fixed-rate mortgage to go higher than 6.4 percent in 2005 from the current level of 5.75 percent. Mortgage interest rates have been falling over the last five weeks.
The real estate agents expect median existing-home prices to rise 7.1 percent this year to $198,400 from the 2004 median of $185,200. The group forecast the new home median price to climb 5.1 percent to $232,200.
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Link of interest : How to become a Successful Real Estate Agent ?
The Real Estate Agents group said it expects 6.700 million existing home sales this year, down 1.2 percent from the year before. New home sales should decline by 2.5 percent to 1.17 million, also just under the record high set in 2004, the Realtors said.
The essentially sideways movement in mortgage interest rates recently has defied the consensus of earlier forecasts, with only a modest uptrend detectable over time, according to NAR Chief Economist. The simple effect, in an economy with an improved labor market, is a higher demand for homes.
The Realtors do not expect rates for the popular 30-year fixed-rate mortgage to go higher than 6.4 percent in 2005 from the current level of 5.75 percent. Mortgage interest rates have been falling over the last five weeks.
The real estate agents expect median existing-home prices to rise 7.1 percent this year to $198,400 from the 2004 median of $185,200. The group forecast the new home median price to climb 5.1 percent to $232,200.
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Link of interest : How to become a Successful Real Estate Agent ?
Sunday
California real estate affordability down by 3%
About 18 percent of households in California can afford a median-priced home in the state, according to the California Association of Realtors.
The association's Housing Affordability Index fell three points in March compared to March 2004, meaning 3 percent fewer households in California state could afford a home. The index dropped 1 percent from February.
In March, the minimum household income needed to purchase a median-priced real estate home at $495,400 in California was $115,910, based on an average effective mortgage interest rate of 5.81 percent and assuming a 20 percent down payment. The minimum household income needed to purchase a median-priced home was up from $97,290 in March 2004, when the median price of a home was $428,060 and the prevailing interest rate was 5.48 percent. The minimum household income needed to purchase a median-priced home at $195,000 in the U.S. in March 2005 was $45,620.
At 36 percent, the High Desert region was the most affordable real estate region in the state, followed by the Sacramento region at 23 percent. The Northern Wine Country and Santa Barbara regions were the least affordable in the state at 9 percent, followed by the Monterey and San Diego regions at 10 percent. The April 2005 sales and median price report for the state and regions within the state will be released on May 24.
The association's Housing Affordability Index fell three points in March compared to March 2004, meaning 3 percent fewer households in California state could afford a home. The index dropped 1 percent from February.
In March, the minimum household income needed to purchase a median-priced real estate home at $495,400 in California was $115,910, based on an average effective mortgage interest rate of 5.81 percent and assuming a 20 percent down payment. The minimum household income needed to purchase a median-priced home was up from $97,290 in March 2004, when the median price of a home was $428,060 and the prevailing interest rate was 5.48 percent. The minimum household income needed to purchase a median-priced home at $195,000 in the U.S. in March 2005 was $45,620.
At 36 percent, the High Desert region was the most affordable real estate region in the state, followed by the Sacramento region at 23 percent. The Northern Wine Country and Santa Barbara regions were the least affordable in the state at 9 percent, followed by the Monterey and San Diego regions at 10 percent. The April 2005 sales and median price report for the state and regions within the state will be released on May 24.
Saturday
Lenders ..
Lenders who assist troubled borrowers to be rewarded by HUD
The U.S. Department of Housing and Urban Development on Friday announced that it is increasing incentive payments available to lenders who utilize HUD's most powerful loss mitigation options for helping borrowers in default avoid foreclosure and retain their homes.
To ensure that families with mortgage loans insured by the Federal Housing Administration (FHA) are offered every opportunity to avoid foreclosure, HUD pays financial incentives to FHA lenders to encourage use of the Department's loss mitigation tools. Under the increased incentives, FHA lenders who utilize mortgage modification and partial claim tools will be entitled to claim an additional financial incentive of $250 per loan. The total financial incentive that will be payable is $750 for mortgage modifications and $500 for partial claims. Reimbursements and incentives for other loss mitigation options remain unchanged at this time.
In fiscal year 2004, more than 78,000 borrowers were able to retain home ownership through FHA loss mitigation options, according to a press statement. The FHA Loss Mitigation Program delegates to lenders both the authority and responsibility to utilize actions and strategies to assist borrowers in default and reduce losses to FHA's insurance funds. Two of the most effective home retention tools are mortgage modification and partial claim. Mortgage modification is a permanent change to one or more of the mortgage terms, such as an increase in the total amount due to include the amount of the delinquency, an extension of the length of time the borrower has to repay or a change in the interest rate to achieve a payment the borrower can afford. Partial claim is a loss mitigation option available only to borrowers with FHA-insured loans. Through a partial claim, HUD lends the borrower money to cure the default. The loan carries no interest and does not become due until the property is sold or paid off.
The increased incentives are effective June 1, 2005. This action is being taken in recognition of the increased costs lenders incur when providing personal loss mitigation assistance to borrowers experiencing financial difficulties. HUD is a federal agency that implements housing policy.
Real estate foreclosure rate highest in Florida
Real estate properties in the process of foreclosure increased in March from the previous month, according to information released today from RealtyTrac
.
"Our March report includes approximately 62,422 new real estate properties in some stage of foreclosure – a 17 percent increase from February," said Jim Saccacio, CEO of RealtyTrac. "While some of this increase can be attributed to new counties in our coverage area, foreclosures clearly increased from February to March. We'll be watching the April numbers very carefully to see if this is the beginning of a trend, or a one-month aberration."
Five states constituted more than 45 percent of all March foreclosures – Florida, Utah, Georgia, Texas and Colorado, according to the report. These five states have the largest number of foreclosures, with more than twice the national average. Florida and Texas alone made up one-third of national foreclosures in March.
For the second month in a row, Florida had the highest rate of foreclosures, more than two and a half times the national average. Nearly 17 percent of all March foreclosures took place in Florida. There was one foreclosure for every 692 Floridian households.
In Texas, more than one third of March foreclosures took place in just two counties: Dallas, with 18 percent, and Tarrant, with 15.3 percent. In each of these counties, the foreclosure rate was more than three and one-half times the national average and over one and one-half times the average in Texas.
www.realtytrac.com publishes a national database of pre-foreclosure and foreclosure properties, with more than 550,000 real estate properties in more than 1,900 counties across the country. It is the most comprehensive source of exclusive foreclosure, pre-foreclosure, auction and bank homes. You can visit the site and take advantage of their free trial here.
"Our March report includes approximately 62,422 new real estate properties in some stage of foreclosure – a 17 percent increase from February," said Jim Saccacio, CEO of RealtyTrac. "While some of this increase can be attributed to new counties in our coverage area, foreclosures clearly increased from February to March. We'll be watching the April numbers very carefully to see if this is the beginning of a trend, or a one-month aberration."
Five states constituted more than 45 percent of all March foreclosures – Florida, Utah, Georgia, Texas and Colorado, according to the report. These five states have the largest number of foreclosures, with more than twice the national average. Florida and Texas alone made up one-third of national foreclosures in March.
For the second month in a row, Florida had the highest rate of foreclosures, more than two and a half times the national average. Nearly 17 percent of all March foreclosures took place in Florida. There was one foreclosure for every 692 Floridian households.
In Texas, more than one third of March foreclosures took place in just two counties: Dallas, with 18 percent, and Tarrant, with 15.3 percent. In each of these counties, the foreclosure rate was more than three and one-half times the national average and over one and one-half times the average in Texas.
www.realtytrac.com
Thursday
Mortgage Refinance
Are the Costs of "No Cost" Mortgage Refinance Worth It?
Homeowners looking to refinance mortgage are being hit with the option of “no cost” refinancing. It is extremely appealing to homeowners who do not have the cash on hand to pay the costs of conventional refinancing or refinancing through an upfront mortgage broker.
But does “no cost” mortgage refinancing actually come with no cost to the borrower? Not always. When the big picture is taken into account, some “no cost” refinancing actually has costs that are pretty steep, but well hidden. Most no cost financing options will have you paying ½ a point to 5/8 of a point more in interest than you would with a full-cost loan.
Is there ever a good reason to take advantage of a “no cost” mortgage refinance? Yes, if the interest rate you are paying now is significantly lower than the current “no cost” refinance rates. You may also want to consider this type of financing if you plan on being in the house for a short period of time, say from one to three years.
If you are not sure how long you are going to be in your home, it is still okay to pursue a no cost loan, and if you wind up staying in the home for a long period of time, you can refinance at a later date.
For borrowers who are considering a no cost mortgage refinance because they can not afford the costs to refinance, dig a bit deeper. Many times when you refinance you can roll the costs of your mortgage refinance into your loan, enabling you to refinance without a large amount of money up front.
If you do decide to opt for a no cost mortgage refinance, make sure that you are truly getting a no cost, and not a hidden cost. With a no cost loan, you will not be paying the lender fees or settlements; the lender pays for these without increasing the cost of your loan. You will however be responsible for per diem interest and escrow costs, though your escrow costs will be credited at closing by your old lender.
by Craig Romero
www.wisemortgageinfo.com
Homeowners looking to refinance mortgage are being hit with the option of “no cost” refinancing. It is extremely appealing to homeowners who do not have the cash on hand to pay the costs of conventional refinancing or refinancing through an upfront mortgage broker.
But does “no cost” mortgage refinancing actually come with no cost to the borrower? Not always. When the big picture is taken into account, some “no cost” refinancing actually has costs that are pretty steep, but well hidden. Most no cost financing options will have you paying ½ a point to 5/8 of a point more in interest than you would with a full-cost loan.
Is there ever a good reason to take advantage of a “no cost” mortgage refinance? Yes, if the interest rate you are paying now is significantly lower than the current “no cost” refinance rates. You may also want to consider this type of financing if you plan on being in the house for a short period of time, say from one to three years.
If you are not sure how long you are going to be in your home, it is still okay to pursue a no cost loan, and if you wind up staying in the home for a long period of time, you can refinance at a later date.
For borrowers who are considering a no cost mortgage refinance because they can not afford the costs to refinance, dig a bit deeper. Many times when you refinance you can roll the costs of your mortgage refinance into your loan, enabling you to refinance without a large amount of money up front.
If you do decide to opt for a no cost mortgage refinance, make sure that you are truly getting a no cost, and not a hidden cost. With a no cost loan, you will not be paying the lender fees or settlements; the lender pays for these without increasing the cost of your loan. You will however be responsible for per diem interest and escrow costs, though your escrow costs will be credited at closing by your old lender.
by Craig Romero
www.wisemortgageinfo.com
Wednesday
Real Estate Housing Boom
The number of real estate investing markets across the country that are experiencing housing surges climbed 72 percent in 2004, according to the Federal Deposit Insurance Corp., warning that booms may end in busts in some cases.
Average home prices rose by almost 11 percent in 2004, up from 7 percent in 2002 and 2003, according to statistics compiled by the Office of Federal Housing Enterprise Oversight. The number of real estate big surge markets in the U.S. now includes some 55 metropolitan areas, the FDIC said.
The FDIC defines real estate surge markets as those that have had price increases of 30 percent or more in three years, after adjusting for inflation. About 15 percent of the 362 metro areas OFHEO tracks for home price trends met the real estate boom criteria at the end of 2004, representing the highest proportion of real estate surge markets in the OFHEO house price index's 30-year history.
The FDIC says the broadening of the U.S. real estate housing surge may imply a growing role for national factors such as availability, price and terms of mortgage credit in explaining home price trends.
To the extent that credit conditions are in fact driving home price trends, the implication would be that a reversal in mortgage market conditions could contribute to an end of the real estate housing surge, as per the FDIC report examining U.S. real estate home prices.
Many economists worry that housing booms will end in a market crash. The FDIC says that not all housing booms will bust, and that history shows the majority of real estate housing booms did not end in busts. The housing crashes FDIC identified in its February study were associated with local economic stress, such as recession and job loss.
However, in it's February study examining the causes of housing surges, the FDIC noted reasons that history may be an imperfect guide to determining whether today's housing booms will bust or slowly fade. Today's real estate market conditions, such as the emergence of the subprime market are pushing homeowners into uncharted territory.
The expansion of subprime and high loan-to-value mortgages, along with growing use of home equity lines of credit, could change the dynamics of real estate home prices in future cycles.
In addition, home buyers increasingly are taking advantage of higher-leverage mortgage products. In 2003, loans exceeding 80 percent of the home price accounted for almost one-third of all purchase mortgages. The practice of raising the total loan amount to a level very near the value of the home makes borrowers more likely to default if there is a housing market downturn.
An increased incidence of default and foreclosure could, in turn, contribute to downward pressure on home prices as distressed properties are liquidated by lenders. However, little is known as yet about the effects these credit-market changes might have on the dynamics of real estate boom-bust cycles as per the FDIC February report.
Of the 55 real estate surge markets FDIC pointed out in the latest study, 21 cities are in California, 18 are in the Northeast and New England, and 11 are in Florida. Of the 31 cities described as real estate surge markets in both 2003 and 2004, all but three continued to see rising home prices in 2004, the FDIC noted. The three were Boston; Stockton, California; and Worcester, Mass.
Average home prices rose by almost 11 percent in 2004, up from 7 percent in 2002 and 2003, according to statistics compiled by the Office of Federal Housing Enterprise Oversight. The number of real estate big surge markets in the U.S. now includes some 55 metropolitan areas, the FDIC said.
The FDIC defines real estate surge markets as those that have had price increases of 30 percent or more in three years, after adjusting for inflation. About 15 percent of the 362 metro areas OFHEO tracks for home price trends met the real estate boom criteria at the end of 2004, representing the highest proportion of real estate surge markets in the OFHEO house price index's 30-year history.
The FDIC says the broadening of the U.S. real estate housing surge may imply a growing role for national factors such as availability, price and terms of mortgage credit in explaining home price trends.
To the extent that credit conditions are in fact driving home price trends, the implication would be that a reversal in mortgage market conditions could contribute to an end of the real estate housing surge, as per the FDIC report examining U.S. real estate home prices.
Many economists worry that housing booms will end in a market crash. The FDIC says that not all housing booms will bust, and that history shows the majority of real estate housing booms did not end in busts. The housing crashes FDIC identified in its February study were associated with local economic stress, such as recession and job loss.
However, in it's February study examining the causes of housing surges, the FDIC noted reasons that history may be an imperfect guide to determining whether today's housing booms will bust or slowly fade. Today's real estate market conditions, such as the emergence of the subprime market are pushing homeowners into uncharted territory.
The expansion of subprime and high loan-to-value mortgages, along with growing use of home equity lines of credit, could change the dynamics of real estate home prices in future cycles.
In addition, home buyers increasingly are taking advantage of higher-leverage mortgage products. In 2003, loans exceeding 80 percent of the home price accounted for almost one-third of all purchase mortgages. The practice of raising the total loan amount to a level very near the value of the home makes borrowers more likely to default if there is a housing market downturn.
An increased incidence of default and foreclosure could, in turn, contribute to downward pressure on home prices as distressed properties are liquidated by lenders. However, little is known as yet about the effects these credit-market changes might have on the dynamics of real estate boom-bust cycles as per the FDIC February report.
Of the 55 real estate surge markets FDIC pointed out in the latest study, 21 cities are in California, 18 are in the Northeast and New England, and 11 are in Florida. Of the 31 cities described as real estate surge markets in both 2003 and 2004, all but three continued to see rising home prices in 2004, the FDIC noted. The three were Boston; Stockton, California; and Worcester, Mass.
Sunday
Largest private land auction in Las Vegas
Some 50 parcels of private land in Las Vegas Valley and a large ranch in Elko County will go on the auction block Wednesday at Cox Pavilion at University of Nevada, Las Vegas.
The largest private land auction in Nevada history -- 254,00 acres -- is being organized by Sperry Van Ness real estate brokerage firm and begins at 10 a.m.
Buyers will have up to 150 days to close escrow on the transactions, which gives them more than the usual 30 to 60 days to complete due diligence.
Several large properties in Northern Nevada will be offered, including the historic 250,000-acre Winecup Gamble Ranch formerly owned by actor Jimmy Stewart. The ranch is accessible by both Interstate 80 and U.S. Highway 93 and has two airplane landing strips and an on-site railroad spur. Grazing boundaries for the ranch extend over 1 million acres, with water resources from wells, surface drainage and natural springs. Also for sales are 3,500 acres in and around West Wendover, a town on the Utah border with weekend occupancy rates of 95 percent for its hotel-casinos.
The private auction comes during the centennial celebration for Las Vegas, nearly 100 years to the date after the May 15, 1905, land auction held by the Las Vegas Land and Water Company that gave birth to the city. During that two-day auction, 110 acres were sold to land buyers who bet on the good fortune of a fledgling railroad town. One hundred years later, Las Vegas has grown into a major U.S. metropolitan area with a population of 1.7 million and 37 million visitors a year. Anywhere from 6,000 to 8,000 people move here each month. Although the city has drastically changed over 100 years, one thing remains the same: valley land is a hot commodity. Only 400 acres of the land up for auction are in Clark County.
Sperry Van Ness auction will take place in a more sophisticated and organized setting than the outdoor covered-stage venue of the 1905 auction. However, the fundamental benefit is still to expose developers and investors to prime Las Vegas properties.
The largest private land auction in Nevada history -- 254,00 acres -- is being organized by Sperry Van Ness real estate brokerage firm and begins at 10 a.m.
Buyers will have up to 150 days to close escrow on the transactions, which gives them more than the usual 30 to 60 days to complete due diligence.
Several large properties in Northern Nevada will be offered, including the historic 250,000-acre Winecup Gamble Ranch formerly owned by actor Jimmy Stewart. The ranch is accessible by both Interstate 80 and U.S. Highway 93 and has two airplane landing strips and an on-site railroad spur. Grazing boundaries for the ranch extend over 1 million acres, with water resources from wells, surface drainage and natural springs. Also for sales are 3,500 acres in and around West Wendover, a town on the Utah border with weekend occupancy rates of 95 percent for its hotel-casinos.
The private auction comes during the centennial celebration for Las Vegas, nearly 100 years to the date after the May 15, 1905, land auction held by the Las Vegas Land and Water Company that gave birth to the city. During that two-day auction, 110 acres were sold to land buyers who bet on the good fortune of a fledgling railroad town. One hundred years later, Las Vegas has grown into a major U.S. metropolitan area with a population of 1.7 million and 37 million visitors a year. Anywhere from 6,000 to 8,000 people move here each month. Although the city has drastically changed over 100 years, one thing remains the same: valley land is a hot commodity. Only 400 acres of the land up for auction are in Clark County.
Sperry Van Ness auction will take place in a more sophisticated and organized setting than the outdoor covered-stage venue of the 1905 auction. However, the fundamental benefit is still to expose developers and investors to prime Las Vegas properties.
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