Weichert Realtors - Craven and Company

15 Secrets of Home Staging

2011-12-30T08:35:00.003-05:00

Bye, Bye Clutter
The most important thing you can do to prepare your home for sale is to get rid of clutter. Make a house rule that for every new item that comes in, an old one has to leave. One of the major contributors to a cluttered look is having too much furniture. When professional stagers descend on a home being prepped for market, they often whisk away as much as half the owner's furnishings, and the house looks much bigger for it. You don't have to whittle that drastically, but take a hard look at what you have and ask yourself what you can live without.

Furniture Groupings
There's a common belief that rooms will feel larger and be easier to use if all the furniture is pushed against the walls, but that isn't the case. Instead, furnish your space by floating furniture away from walls. Reposition sofas and chairs into cozy conversational groups, and place pieces so that the traffic flow in a room is obvious. Not only will this make the space more user-friendly, but it will open up the room and make it seem larger.

Musical Furniture
Give yourself permission to move furniture, artwork and accessories among rooms on a whim. Just because you bought that armchair for the living room doesn't mean it won't look great anchoring a sitting area in your bedroom. And try perching a little-used dining-room table in front of a pretty window, top it with buffet lamps and other accessories, and press it into service as a beautiful writing desk or library table.

Room Transformations
If you have a room that serves only to gather junk, repurpose it into something that will add to the value of your home. The simple addition of a comfortable armchair, a small table and a lamp in a stairwell nook will transform it into a cozy reading spot. Or drape fabric on the walls of your basement, lay inexpensive rubber padding or a carpet remnant on the floor and toss in a few cushy pillows. Voila - a new meditation room or yoga studio.

Home Lighting
One of the things that make staged homes look so warm and welcoming is great lighting. As it turns out, many of our homes are improperly lighted. To remedy the problem, increase the wattage in your lamps and fixtures. Aim for a total of 100 watts for each 50 square feet. Don't depend on just one or two fixtures per room, either. Make sure you have three types of lighting: ambient (general or overhead), task (pendant, under-cabinet or reading) and accent (table and wall).

Make It Bigger
To make a room appear to be bigger than it is, paint it the same color as the adjacent room. If you have a small kitchen and dining room, a seamless look will make both rooms feel like one big space. And make a sun porch look bigger and more inviting by painting it green to reflect the color of nature. Another design trick: If you want to create the illusion of more space, paint the walls the same color as your drapery. It will give you a seamless and sophisticated look.

Neutral and Appealing
Painting a living room a fresh neutral color helps tone down any dated finishes in the space. Even if you were weaned on off-white walls, take a chance and test a quart of paint in a warm, neutral hue. These days, the definition of neutral extends way beyond beige, from warm tans and honeys to soft blue-greens. As for bold wall colors, they have a way of reducing offers, so go with neutrals in large spaces.

Color Experiment
Don't be afraid to use dark paint in a powder room, dining room or bedroom. A deep tone on the walls can make the space more intimate, dramatic and cozy. And you don't have to go whole hog - you can paint just an accent wall to draw attention to a dramatic fireplace or a lovely set of windows. If you have built-in bookcases or niches, experiment with painting the insides a color that will make them pop — say, a soft sage green to set off the white pottery displayed within.

Vary Wall Hangings
If your home is like most, the art is hung in a high line encircling each room. Big mistake. Placing your pictures, paintings and prints in such stereotypical spots can render them almost invisible. Art displayed creatively makes it stand out and shows off your space. So break up that line and vary the patterning and grouping.

Three's Company
Mixing the right accessories can make a room more inviting. When it comes to eye-pleasing accessorizing, odd numbers are preferable, especially three. Rather than lining up a trio of accessories in a row, imagine a triangle and place one object at each point. Scale is important, too, so in your group of three, be sure to vary height and width, with the largest item at the back and the smallest in front. For maximum effect, group accessories by color, shape, texture or some other unifying element, stagers suggest.

Raid Your Yard
Staged homes are almost always graced with fresh flowers and pricey orchid arrangements, but you can get a similar effect simply by raiding your yard. Budding magnolia clippings or unfurling fern fronds herald the arrival of spring, summer blooms add splashes of cheerful color, blazing fall foliage warms up your decor on chilly autumn days and holly branches heavy with berries look smashing in winter.

Serene and Inviting
Create a relaxing bedroom setting with luxurious linens and soft colors that will make a potential home buyer want to hang out. Bedroom staging trick: If you don't have the money to buy a new bed, just get the frame, buy an inexpensive air mattress and dress it up with neutral-patterned bedding. And remember to declutter. By cleaning out your closets, you're showing off your storage space, which sells houses - it always ranks high on buyers' priority list.

New Faces
If you can't afford new cabinets, just get new doors and drawer fronts. Then paint everything to match and add new hardware. And instead of replacing the entire dishwasher, you may be able to get a new front panel. Check with the manufacturer to see if replacements are available for your model. If not, laminate paper, which goes on like contact paper, can be used to re-cover the existing panel.

Repaired Wood
Unfinished projects can scare off potential buyers, so finish them. Missing floorboards and large cracks in the sidewalk on the way to your door tend to be a red flag, for example, and they cost you less to fix than buyers might deduct from the asking price.

Prim and Polished
Having tile professionally painted can make a bathroom look brand new. And accessorizing can make buyers feel like they're in a spa. Put out items like rolled-up towels, decorative baskets and candles. It's a great way to create a polished look, and it doesn't cost much to do.

We at Weichert, Realtors – Craven and Company welcome your questions and calls about selling your home! To contact us, click on the link on our homepage, or call us at 704.788.1122

Article by Leah Hennen, HGTV.com

Your First Step in Your Home Search - Mortgage Prequalification

2011-12-29T16:36:00.002-05:00

It is a good idea before beginning the home-buying process to obtain prequalification for a mortgage. You will learn the price range in which you should search for houses. In addition, it lets sellers and real estate agents know you are a serious buyer and not just window shopping. Prequalifying for a mortgage involves giving the lender general information about your financial picture including credit history, debt, income and employment status.

Credit History
A lender measures your willingness to repay your outstanding debt by looking at your credit history. Your credit history shows a record of loans you've paid in the past and how well you are paying off your current debt. This information gives lenders an idea of how reliable you will be about paying a mortgage in the future. If your credit history shows you have consistently made timely payments to your creditors, you have a better chance of qualifying for a loan.

Income
Another important step in prequalifying for a loan is your ability to repay the loan. The lender looks at your income to make this determination. Usually the lender will require at least a month’s worth of pay stubs to determine your ability to pay. If you are self-employed, the lender usually requires tax returns from the previous two years. You are more apt to qualify for a loan if you can show your income has been stable for a couple of years. If you are applying for a joint mortgage, both parties have to submit documentation to verify income.

Employment Status
Employment stability is an important factor when seeking prequalification for a mortgage. Lenders like to see a minimum of two years of stable employment. It is preferable to have steady employment with the same employer for at least two years. However, if you've switched employers in less than two years, lenders still look favorably on you as long as the new position is in the same career field. Self-employed workers must provide documentation for two years of consistent and steady employment to be prequalified.

Current Debt
The amount of debt you currently have outstanding is an important factor in the prequalification process. Obviously, if you already have too much outstanding debt, you will be hard-pressed to get qualified. Lenders typically don’t like to see more than 36 percent of your pre-tax income going to pay off debt, according to Lendingtree. This amount includes the 28-percent limit of your pre-tax income for the mortgage payment, taxes and insurance. When using a program such as FHA, these percentages aren’t as strict as with conventional financing.

Down Payment
When considering a mortgage, you need to evaluate how much money you can contribute towards your down payment. The amount of down payment contributed directly affects the amount of house for which you can qualify. With conventional financing, a 20-percent down payment positively affects the rate and terms of the mortgage. Standard conventional mortgage guidelines dictate that a down payment of 20 percent or more excludes you from having to pay private mortgage insurance. With home loan programs such as FHA or VA, the down payment requirement is more affordable at less than 5 percent in most cases. Still, it is necessary to determine how you will obtain the down payment, in order to be prequalified. Your lender is a good resource for assistance with avenues available to you for help with the down payment.

We at Weichert, Realtors - Craven & Company look forward to working with you to find your dream home! Contact us by clicking on the Information link here, or call us at 704.788.1122.

IRS Energy Tax Credits: What You Need to Know to Collect

2011-12-28T11:41:00.003-05:00

2011’s federal energy tax credits of up to $500 for various home improvements are a far cry from what they were last year. But if the limits and other fine print—which we’ll get to—doesn’t dissuade you and you really need to upgrade one or more of the following systems, take advantage of the energy tax credits.

Biomass stoves
Heating, ventilation, air conditioning
Insulation
Roofs (metal and asphalt)
Water heaters (non-solar)
Windows, doors, and skylights
Storm windows and doors

The energy tax credits are small, but at least a credit is better than a deduction:
Deductions just reduce your taxable income.
With a credit, you get a dollar-for-dollar reduction in your tax liability: If you get the $500 credit, you pay $500 less in taxes.
Other limits on IRS energy tax credits besides $500 max

Credit only extends to 10% of the cost (not the 30% of yesteryear), so you have to spend $5,000 to get $500.$500 is a lifetime limit. If you pocketed $500 or more in 2009 and 2010 combined, you’re not entitled to any more money for energy-efficient improvements in the above seven categories. But if you took $300 in the last two years, for example, you can get up to $200 in 2011.

With some systems, your cap is even lower than $500.$500 is the max for all qualified improvements combined.Certain systems capped below $500

No matter how much you spend on some approved items, you’ll never get the $500 credit—though you could combine some of these:

System Cap
New windows $200 max (and no, not per window—overall)
Advanced main air-circulating fan $50 max
Qualified natural gas, propane, or oil furnace or hot water boiler $150 max
Approved electric and geothermal heat pumps; central air-conditioning systems; and natural gas, propane, or oil water heaters $300 max

And not all products are created equal in the feds’ eyes. Improvements have to meet IRS energy-efficiency standards to qualify for the tax credit. In the case of boilers and furnaces, they have to meet the 95 AFUE standard. EnergyStar.gov has the details.

Tax credits cover installation—sometimes
Rule of thumb: If installation is either particularly difficult or critical to safe functioning, the credit will cover labor. Otherwise, not. (Yes, you’d have to be pretty handy to install your own windows and roof, but the feds put these squarely in the “not covered” category.)

Installation covered for:
Biomass stoves
HVAC
Non-solar water heaters

Installation not covered for:
Insulation
Roofs
Windows, doors, and skylights

How to claim the 2011 energy tax credit
Determine if the system you’re considering is eligible for the credits. Go to Energy Star’s website for detailed descriptions of what’s covered; then talk to your vendor.
Save system receipts and manufacturer certifications. You’ll need them if the IRS asks for proof.
File IRS Form 5695 with the rest of your tax forms in 2012.
This article provides general information about tax laws and consequences, but isn’t intended to be relied upon as tax or legal advice applicable to particular transactions or circumstances. Consult a tax professional for such advice, and remember that tax laws may vary by jurisdiction.

Article by Donna Fuscaldo, House Logic
Donna Fuscaldo has written about personal finance for more than decade for Dow Jones Newswires, the Wall Street Journal, and Fox Business News. She’s currently a freelance writer with her own home office.

Test for Hootsuite

2011-11-21T11:20:00.001-05:00

Emergency Preparedness Planning

2011-06-09T16:05:00.001-04:00

With this week marking the start of the 2011
hurricane season, as well as the many reported
tornadoes over the past several month, there is no
better time to take steps to ensure your family
remains safe in case of a natural disaster. There is no
guarantee of outside help, so homeowners should
take control of their own ability to respond to floods,
hurricanes, wildfires and other emergencies.
According to a 2008 FEMA survey, more than half of all U.S. households have
some sort of disaster preparation in place. If yours isn’t one of them, here are
some steps you should take:

• Gather important papers, including the deed to your house, proof of
insurance, medical records, passports, social security cards and a list of
personal contacts, and make several copies of each. Keep one set at
home in a portable case and another offsite in a safe place.

• Make sure you know where to find the main electrical and water shutoffs,
and have the correct tools handy to turn them. This could save you
valuable time in case of an emergency and may spare your home from
significant damage.

• Prepare a basic emergency preparedness kit that you can use inside
your home or grab quickly in case of an evacuation. Some of the items to
include are water, non-perishable food items and a can opener,
flashlights and batteries, and a first-aid kit.

• Select a time each year, perhaps on New Year's Day or the start of
hurricane season, to make sure you have the most up-to-date paperwork
and to check for expired food items.

Fannie Mae Announces 3.5 Percent Buyer Assistance on HomePath® Properties

2011-04-12T13:00:00.000-04:00

Washington, DC — Fannie Mae announced today that people purchasing a Fannie Mae-owned HomePath property will receive up to 3.5 percent in closing cost assistance. The initial offer must be submitted on or after April 11, 2011; and the sale must close on or before June 30, 2011 to be eligible for the incentive. Additionally, buyers must reside in the home as their primary residence (sales to investors are excluded).

"Attracting qualified buyers to the market and reducing the inventory of vacant homes remains essential to stabilizing neighborhoods and helping the market recover," said Terry Edwards, Executive Vice President of Credit Portfolio Management. "Since interest rates remain low, the incentive will go a long way toward helping even more families buy a new home so this is a great time for Fannie Mae to offer some assistance."

All Fannie Mae-owned HomePath properties are listed on HomePath.com and most listings include detailed property descriptions, photographs, community and school information, and more. In addition, many Fannie Mae-owned properties are eligible for special HomePath Mortgage and HomePath Renovation Mortgage financing, which offers homebuyers an opportunity to purchase with as little as 3 percent down.

5 Real Estate and Mortgage Urban Legends

2011-04-07T09:44:00.000-04:00

Entire feature films, websites and hour-long cable specials have been devoted to debunking urban legends, those modern fables that circulate at the speed of the internet. And real estate is not immune; modern-day myths of easy-peasy seller financing, distressed sellers practically throwing their properties at buyers, and cosmetic fixers that can be had for pennies are just that - fairy tales which, if believed, can result in some not-so-happy endings.

The real deal is that real estate is much more affordable than it used to be, but the barriers to entry are higher, and the days in which you could get something for nothing are over. Here are five real estate and mortgage urban legends, and the truth which lies beneath.

Urban Legend #1: Got bad credit? Get seller financing. Does seller financing exist? Of course. Is it as easy to get - or desirable - as they make it seem in the infomercials? Not even close.

Here's the real deal: most sellers who have a mortgage they obtained in the last 10 years or so also have a due on sale clause which requires them to pay it off when they sell the property. Financing the sale themselves, vs. requiring the buyer to obtain mortgage or other financing to pay for the property, prevents them from having the cash to pay their mortgage off, as required. And the vast majority of those who don’t have a mortgage of recent vintage need the proceeds from the sale of their homes to buy their next home or invest in their next property.

What’s more, even the few sellers who don’t need the cash often don’t want to take on the long-term risk and hassle involved with having to collect payments from a buyer for 10, 15, or 30 years. The sellers who can and will agree to seller financing usually want a premium price and interest rate for it - and the smart ones will require some type of credit check and a deeper down payment than a traditional lender.

And seller financing, as sweet as it sounds, poses risks for buyers, too. If the seller keeps a bank mortgage on the property and fails to make the payment, the seller-financed buyer could end up losing the home they’ve paid for to foreclosure. Best targets for seller-financing are investor sellers who are looking to avoid capital gains, and best practice is to get a local real estate attorney involved in drafting and recording the transfer and financing documentation.

Urban Legend # 2: Buyers save big bucks on cosmetic fixers. Sellers aren’t stupid - and neither are their agents. There might have been a day and time in which you could find listings that were deeply discounted because they needed a little cosmetic refresh. But those days are long gone - even in today’s down market, sellers expect to invest a little cash into paint and carpet to stage and spruce up their biggest asset and get as much as humanly possible for it. Today’s sellers also know that homes not in tip-top shape may not sell at all these days, so they go to great lengths to do make their homes shine. (And those who can’t afford to aren’t slashing tens of thousands off their homes’ list prices, though some will offer buyers a credit at closing.)

That’s not to say you can’t get a discount on a place that needs some work. But the meatiest discounts are on the places that need the most work; roof leaks, old windows and laundry-list long pest inspection reports are much more likely to get you a big price break than scuffed walls and grungy carpeting on a home in otherwise sound condition.

Urban Legend #3: 100 percent financing for first-time buyers. Most of the national first-time buyer programs are mere figments of our collective mortgage memory. But during the subprime mortgage era, 100 percent financing was available to pretty much everyone, not just first-timers. And the post-bubble first-time buyer programs tended to be tax credits that could defray some of the up front investment required to buy a home, rather than zero-down home loans.

FHA loans, which are extremely popular with first-time buyers, are available to any buyer who can qualify, whether or not they have owned homes before or own one now. Most of the state and local first-time buyer programs that still exist involve some level of down payment or closing cost assistance, but the vast majority also require that the buyer put some of their own cash into the transaction. The prevailing theory today is that homeowners who have put their own hard-earned cash into their homes are less likely to walk away from it later, whether or not they are first-time buyers. It has also become clear that the financial management skills and discipline it takes to save up for a down payment or closing costs are skills and habits that stand prospective buyers in good stead for the rest of their lifetimes as homeowners.

Long story short, while virgin homebuyers can and should seek out the assistance programs available to them (local real estate and mortgage pros often know the ins and outs), they should also tuck their pennies away and expect to have to put some of their own financial skin in the game.

Urban Legend #4: Nearly free foreclosures. We've all heard the line that banks don't want to be in the business of owning homes. That may be true, but they are in that business, whether or not they want to be. As a result, they're not giving houses away at pennies on the dollar. In fact, bank-owned homes, as a rule, must be sold at as close as possible to their fair market value. Banks and their Wall Street mortgage investors do this by exposing the property fully to the market, rarely accepting lowball offers, and only lowering list prices in fairly small increments after a listing fails to sell after 60 or 90 days (plus) at the pre-reduction price.

While foreclosed homes do sell for less, on average, than their "regular" sale counterparts, they are also often in worse condition. And banks are virtually always less negotiable on pricing, repairs and other terms than individual sellers. The fact of the matter is that some of the best deals on today's market are to be had via negotiations with realistic owners of non-distressed properties who are ready, willing and able to make a deal.

Urban Legend #5: Distressed owners who will sign their home over to you, gratis. This one is fantasy of the highest level. First off, very few assumable home loans even exist anymore; most mortgage are due on sale, which means that new buyers have to qualify for and secure their own loans. Secondly, many mortgages that ARE assumable have much higher interest rates than today's home loans. Third, most homeowners who are in a distressed position on their home are in that position because their home has declined in value and they now owe more on it than it's worth, which stops them from pulling off a traditional sale or refinancing it at today's lower rate.

Ask yourself: why would you, a buyer, want to assume a mortgage balance vastly greater than the property is worth, even if you could? It's just not worth it, even if you think you're getting a shortcut around the mortgage qualifying rigmarole.

Add to that the fact that many states have consumer protection laws dramatically limiting the sort of 'bailout' that is even legal to propose to a homeowner who is in some stage of the foreclosure process. In addition, many homeowners who have received foreclosure notices are in the process of trying to work out their distress with their lender or staying put without making payments as long as possible before losing their homes. These folks might be slightly miffed at your intrusion, to put it politely, if you ring them up, send them a note or knock on their door trying to pitch yourself (and your signature) as their mortgage distress solution.

By Tara-Nicholle Nelson, Trulia

Weichert, REALTORS® - Craven & Company Honored for 2010 Achievements

2011-03-09T09:21:00.004-05:00

Concord, N.C., March 8, 2011—WEICHERT, REALTORS® - Craven & Company Broker/Owner Allen Craven, along with staff and sales team members, were on hand to applaud the company’s agents as they received awards for 2010 achievements from both the national Weichert® office and the Weichert® Western Carolinas Broker Council.

A banquet ceremony held at the Charlotte Marriott Executive Park honored top producers from three Weichert® Carolinas Broker Councils. Two of the Cabarrus County company’s agents were called to the front to take bows for outstanding production in 2010.

Debbie Fink stood out as an inductee into the Ambassador’s Club, one of the three top categories of awards to agents presented annually by the franchise organization. The agency’s Andrew Ferraro took a bow as a member of the 2010 Sales Achievement Club.

Fink was also recognized by the Weichert® Western Carolinas Broker Council as the Top Listing Sales Associate (GCI) and Top Overall Sales Associate Council-wide in 2010.

All awards are based on minimum requirement per award category in gross commission income or units earned in 2010. These agents earned their recognition from among more than 7,000 associates in 36 states at year’s end.

Existing-Home Sales Rise Again in January

2011-02-23T10:33:00.001-05:00

The uptrend in existing-home sales continues, with January sales rising for the third consecutive month with a pace that is now above year-ago levels, according to the National Association of REALTORS®.

Existing-home sales1, which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 2.7 percent to a seasonally adjusted annual rate of 5.36 million in January from a downwardly revised 5.22 million in December, and are 5.3 percent above the 5.09 million level in January 2010. This is the first time in seven months that sales activity was higher than a year earlier.

Lawrence Yun, NAR chief economist, said the improvement is good but could be better. “The uptrend in home sales is consistent with improvements in the economy and jobs, which are helping boost consumer confidence,” Yun said. “The extremely favorable housing affordability conditions are a big factor, but buyers have been constrained by unnecessarily tight credit. As a result, there are abnormally high levels of all-cash purchases, along with rising investor activity.”

A parallel NAR practitioner survey2 shows first-time buyers purchased 29 percent of homes in January, down from 33 percent in December and 40 percent in January 2010 when an extended tax credit was in place.

Investors accounted for 23 percent of purchases in January, up from 20 percent in December and 17 percent in January 2010; the balance of sales were to repeat buyers. All-cash sales rose to 32 percent in January from 29 percent in December and 26 percent in January 2010.

“Increases in all-cash transactions, the investor market share and distressed home sales all go hand-in-hand. With tight credit standards, it’s not surprising to see so much activity where cash is king and investors are taking advantage of conditions to purchase undervalued homes,” Yun said.

All-cash purchases are at the highest level since NAR started measuring these purchases monthly in October 2008, when they accounted for 15 percent of the market. The average of all-cash deals was 20 percent in 2009, rising to 28 percent last year.

The national median existing-home price3 for all housing types was $158,800 in January, down 3.7 percent from January 2010. Distressed homes edged up to a 37 percent market share in January from 36 percent in December; it was 38 percent in January 2010.

NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I., said the median price is being dampened by unusual market factors. “Unprecedented levels of all-cash purchases, primarily of distressed homes sold at deep discounts, undoubtedly pulls the median price downward,” Phipps said. “Given the levels of inventory we see today, we believe that traditional homes in good condition have held their value.”

Total housing inventory at the end of January fell 5.1 percent to 3.38 million existing homes available for sale, which represents a 7.6-month supply4 at the current sales pace, down from an 8.2-month supply in December. The inventory supply is at the lowest level since December 2009 when there was a 7.3-month supply.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 4.76 percent in January from 4.71 percent in December; the rate was 5.03 percent in January 2010.

Single-family home sales rose 2.4 percent to a seasonally adjusted annual rate of 4.69 million in January from 4.58 million in December, and are 4.9 percent higher than the 4.47 million level in January 2010. The median existing single-family home price was $159,400 in January, down 2.7 percent from a year ago.

Existing condominium and co-op sales increased 4.7 percent to a seasonally adjusted annual rate of 670,000 in January from 640,000 in December, and are 7.9 percent above the 621,000-unit pace one year ago. The median existing condo price5 was $154,900 in January, which is 10.2 percent below January 2010.

Regionally, existing-home sales in the Northeast fell 4.6 percent to an annual pace of 830,000 in January from a spike in December and are 1.2 percent below January 2010. The median price in the Northeast was $236,500, which is 4.0 percent below a year ago.

Existing-home sales in the Midwest rose 1.8 percent in January to a level of 1.14 million and are 3.6 percent above a year ago. The median price in the Midwest was $126,300, which is 3.2 percent below January 2010.

In the South, existing-home sales increased 3.6 percent to an annual pace of 2.02 million in January and are 8.0 percent higher than January 2010. The median price in the South was $136,600, down 2.1 percent from a year ago.

Existing-home sales in the West rose 7.9 percent to an annual level of 1.37 million in January and are 7.0 percent above January 2010. The median price in the West was $193,200, down 5.7 percent from a year ago.

The National Association of REALTORS®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.

# # #

NOTE: NAR also tracks monthly comparisons of existing single-family home sales and median prices for select metropolitan statistical areas, which is posted with other tables at: www.realtor.org/research/research/ehsdata. For information on areas not included in the report, please contact the local association of REALTORS®.

1Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings. This differs from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which generally account for 85 to 90 percent of total home sales, are based on a much larger sample – more than 40 percent of multiple listing service data each month – and typically are not subject to large prior-month revisions.

The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns.

Single-family data collection began monthly in 1968, while condo data collection began quarterly in 1981; the series were combined in 1999 when monthly collection of condo data began. Prior to this period, single-family homes accounted for more than nine out of 10 purchases. Historic comparisons for total home sales prior to 1999 are based on monthly single-family sales, combined with the corresponding quarterly sales rate for condos.

Also released today are historic data revisions. Each February, NAR Research incorporates a normal review of seasonal activity factors and fine-tunes historic data for the past three years based on the most recent findings. Revisions have been made to monthly seasonally adjusted annual sales rates for 2008 through 2010, as well as the inventory month's supply data; most revisions are minor with little or no impact on previous characterizations of the overall market. There are no revisions to monthly home prices or raw inventory data (beyond normal prior-month revisions).

Note on Benchmark Revisions: All major statistical data series go through periodic reviews and revisions to ensure that sampling and methodology keep up with changes in the market, such as population changes in sampled areas, to ensure accuracy; we have been examining the existing-home sales data for any issues since late 2010. NAR began its normal process for benchmarking sales earlier this year; there will be no change to median prices. In the past we’ve benchmarked to the decennial Census, most recently to the 2000 Census, because it included home sales data. However, the data are no longer included in the Census, so we’re looking at more frequent benchmarking using a new approach with independent sources to improve our process and modeling. As always, we are consulting with various outside housing economists, government agencies and academic experts for a consensus on the methodology; NAR is committed to providing accurate, reliable data. Publication of the revisions is expected this summer.

2Distressed sales, first-time buyers, investors, all-cash transactions and data for contract cancellations, etc., are from a survey for the REALTORS® Confidence Index, scheduled to be posted March 14.

3The only valid comparisons for median prices are with the same period a year earlier due to the seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the composition of sales can distort median price data. Year-ago median and mean prices sometimes are revised in an automated process if more data is received than was originally reported.

4Total inventory and month’s supply data are available back through 1999, while single-family inventory and month's supply are available back to 1982 (prior to 1999, condos were measured quarterly while single-family sales accounted for more than 90 percent of transactions).

5Because there is a concentration of condos in high-cost metro areas, the national median condo price generally is higher than the median single-family price. In a given market area, condos typically cost less than single-family homes.

Existing-home sales for February will be released March 21, the Pending Home Sales Index for February is scheduled for March 28, and the 2010 Vacation and Investment Home study will be published March 30; release times are 10:00 a.m. EDT.

Information about NAR is available atwww.realtor.org. This and other news releases are posted in the News Media section. Statistical data in this release, other tables and surveys also may be found by clicking on Research.

8 Tips for Adding Curb Appeal

2011-02-16T10:16:00.001-05:00

Curb appeal has always been important for home sellers. With the vast majority of today’s home buyers starting their search on the Internet, the appearance of your property is more critical than ever. You only have a few seconds to catch their attention as they scroll through listings online to get them to stop and take a closer look.

But the role of curb appeal goes beyond just making a good first impression. The way your house looks from the street can impact its value. It can also shorten the time it takes to sell your house.

We asked real estate agents, appraisers, home stagers, landscape designers, and home inspectors which curb appeal projects offer the most value when your house is on the market, both in terms of its marketability and dollars. Here is what they told us:

1. Paint the house.
Hands down, the most commonly offered curb appeal advice from our real estate pros and appraisers is to give the exterior of your home a good paint job. Buyers will instantly notice it and appraisers will note it on the valuation.

“Paint is probably the number one thing inside and out,” says Frank Lucco, managing partner of Houston-based IRR-Residential Appraisers and Consultants. “I’d give additional value for that. If you’re under two years remaining life (on the paint job), paint the exterior because it tends to show wear badly.”

Just make sure you stay within the range of accepted colors for your market. A house that’s painted a wildly different color from its competition will be marked down in value by appraisers.

2. Have the house washed.
Before you make the investment in a paint job, though, take a good look at the house. If it’s got mildew or general grunge, just washing the house could make a world of difference, says Valerie Torelli, a California real estate agent with a background in accounting.

Torelli specifies pressure-washing—a job that should be left to professionals. Pressure washing makes the house look “bright and clean in addition to getting rid of unsightly things like cobwebs, which may not be seen from the yard but will detract from the home’s cleanliness when seen up close,” she says.

The cost to have a professional cleaning should be a few hundred dollars—a fraction of the cost of having the house painted.

3. Trim the shrubs and green up the yard.
California real estate agent Valerie Torelli says she puts a lot of emphasis on landscaping, such as cutting down overgrown bushes and replacing them with leafy plants and annuals mulched with beautiful reddish-brown bark. “It runs me $30 to $50,” says Torelli. “Do you get a return on your money? Absolutely. It sucks people in.”

You also don’t want bare spots. Take the time to fertilize the yard, throw out some grass seed, and if need be, add some sod.

4. Add a splash of color.
It could be a flower bed of annuals by the mailbox, a paint job for the front door, or a brightly colored bench or an Adirondack chair. “You can get a cute little bench at Home Depot for $99,“ Torelli notes. “Spray paint it bright red or blue and set it in the yard or on the front porch.”

It’s not a bad idea, but don’t plan on getting extra points from an appraiser for a red bench, says John Bredemeyer, president of Realcorp in Omaha. “It’s difficult to quantify, but it does make a home sell more quickly,” Bredemeyer says. “Maybe yours sold a couple weeks faster than the house down the street. That’s the best way to look at these things.”

5. Add a fancy mailbox and house numbers.
An upscale mail box and architectural house numbers or an address plaque can give your house a distinctive look that stands out from everyone else on the block. Torelli makes them a part of her exterior makeovers “I’ve gotten those hand-painted mailboxes,” she says. “A nice one runs you $40 to $50.” Architectural house numbers may run as high as a few hundred dollars.

6. Repair or clean the roof.
Springfield, Va.-based home inspector and former builder Reggie Marston says the roof is one of the first things he looks at in assessing the condition of a home. He’ll look at other houses in the neighborhood to see if there are a lot of replaced roofs and see if the subject house has one as well. If not, he’ll look for curls in the shingles or missing shingles. “I’m looking at the roof for end-of-life expectancy,” he says.

You can pay for roof repairs now, or pay for them later in a lower appraisal; appraisers will mark down the value by the cost of the repair. That could knock thousands of dollars off your appraisal. According to Remodeling Magazine’s 2010-2011 Cost vs. Value Report, the average cost of a new asphalt shingle roof is about $21,500.

“Roofs are issues,” Lucco says. “You won’t throw money away on that job. You gotta have a decent roof.”

Stains and plant matter, such as moss, can be handled with cleaning. It’s a job that can often be done in a day for a few hundred dollars, and makes the roof look like new. It’s not a DIY project; call a professional with the right tools to clean it without damaging it.

7. Put up a fence.
A picket fence with a garden gate to frame the yard is an asset. A fence has more impact in a family-oriented neighborhood than an upscale retirement community, Bredemeyer says, but in most instances, appraisers will give extra value for one, as long as it’s in good condition. “Day in a day out, a fence is a plus,“ Bredemeyer says. Expect to pay $2,000 to $3,500 for a professionally installed gated picket fence 3 feet high and 100 feet long.

8. Perform routine maintenance and cleaning.
Nothing sets off subconscious alarms like hanging gutters, missing bricks from the front steps, or lawn tools rusting in the bushes. It makes even the professionals question what else hasn’t been taken care of.

“A house is worth less if the maintenance isn’t done,” Lucco says. “Those little things can add up and be a very big detractor. When people say, ‘I’d buy it if it weren’t for all the deferred maintenance,’ what they’re really saying is, ‘I’d still buy it if you reduce the price.’”

Georgia-based freelance writer Pat Curry has covered housing and real estate for consumer and trade publications for more than a decade, including covering new home sales and marketing for BUILDER, the magazine of the National Association of Home Builders.

Read more: http://www.houselogic.com/articles/8-tips-adding-curb-appeal-and-value-your-home/#ixzz1E8SV9mAI

Your Guide to Outdoor Maintenace

2011-02-14T12:32:00.002-05:00

In the South, high heat, excessive humidity, and driving rains can punish your home’s exterior and other outdoor features on your property. By performing regular inspections and preventative outdoor maintenance, a homeowner can avoid much pricier repairs down the road. Here are some of the key areas that certified home inspectors focus on when examining the exterior of a house and surrounding property.

Grading
Maintaining a proper grade or slope away from the home is crucial. But the South’s clay-heavy soils can pose challenges to that endeavor, says Bob McDonough, a certified home inspector with Atlanta’s National Property Inspections.

“Clay soil shrinks when it dries out, causing the earth to separate from the foundation,” he explains. Water that seeps into those cavities can find its way into basements. If it freezes, it can cause cracks in the foundation.

Prevention can be as simple as filling these gaps with soil as soon as they appear. If the soil surrounding the foundation doesn’t slope away from the home, additional fill dirt may need to be brought in. Neglecting this task can be expensive: $3,000 or more to stabilize a bowed block foundation, and more than $10,000 to replace it.

Doors and windows
Leaky doors and windows not only decrease a home’s comfort and efficiency, they can invite moisture, insects and rot, says McDonough. Routinely check caulking and weather stripping to ensure tight seals. Inspect wood sills and trim for peeling paint, insect damage, and moisture penetration.

Fogging in double-pane windows is a sign that the seal has failed, resulting in the loss of insulating qualities. The window will need to be repaired or replaced. Cracked window panes, missing storms, and ripped screens should be replaced or repaired.

Decks
Decks on Southern homes are often 20 to 30 feet off the ground due to hilly terrain, notes Earl Beahm, president of the Atlanta chapter of the National Association of Certified Home Inspectors. For that reason, safety is paramount. Check to see that railings and stairs are firm and secure. Closely inspect the bolts that connect the deck to the house.

Hammer or screw popped nails and screws back in place. Posts need to be monitored for rot at the soil line. Wood decks benefit from annual cleanings and sealing.

Septic systems
Just because septic systems are underground doesn’t mean they can’t be monitored from the surface. Trouble typically presents itself in the form of foul odors and visible seepage. An average family of four should have their system inspected and pumped every three to five years.

Air conditioning & heat pump
Air conditioners get a lot of use down South, so it’s important to keep them in peak condition. Leaves, debris, and shrubbery allowed to grow too close to the unit can decrease the system’s efficiency, notes Patrick Cloninger, a certified home inspector with Knoxville’s Pinpoint Home Inspections. Remove loose debris and yard waste, and cut back shrubbery so that it’s at least 2 feet away from the unit.

Check to ensure that the concrete pad is level, as a shifting base can damage the unit. Inspect the insulation on the copper refrigerant line, which prevents condensation and increases efficiency. Get the system serviced by a pro every couple years.

Irrigation systems & spigots
In spring, sprinkler heads should be checked for proper working condition. A weak or nonfunctioning sprinkler is likely a sign of a split line or popped connection.

With the system running, examine that all areas of the landscape are receiving equal amounts of spray. Heads that are spraying excessive amounts of water on driveways and sidewalks should be adjusted or replaced. Cost: $3 to $15 per replaced head, $2 to $5 for a coupling to repair a leak. Allow two hours to check the system.

A hard freeze often catches Southerners unprepared. In spring, take care that garden hoses are disconnected in the event of sudden frost. In the fall, exterior spigots should be drained and garden hoses disconnected and stowed. Homeowners with automatic lawn sprinkler systems should drain the lines and shut off the water source. Water that’s left in the lines and allowed to freeze can crack hoses or burst pipes.

Fences and gates
Wood fences generally require more attention than their chain-link and vinyl counterparts. Every other year or so the wood should be painted or sealed, unless the wood is left to weather naturally.

All wooden fences should be inspected for rot and insect damage every few months. Popped boards need to be nailed back in place; warped ones should be replaced. Pay special attention to posts, which are susceptible to rot.

Although largely maintenance free, chain-link and vinyl fences should be examined regularly for proper functioning. A sagging panel, crooked door hinge, or misaligned latch likely signals a shifting post. The South’s clay-heavy soils have a tendency to expand and contract with changes in moisture content, putting pressure on fence posts. The cost of replacing a post is $7.50 to $15 for a 5-foot cedar post.

Vinyl fences will need to be cleaned at least once a year. Throughout the growing season, remove vegetation with a trimmer along the base of the fence to prevent damage from climbing weeds.

Garages and outbuildings
Vegetation should be pruned at least 3 feet away from buildings to prevent mold, pest infestation, or damage to siding from high winds. Large tree limbs should be trimmed to prevent them from touching the structure. Cost: $15 for a pruning saw and $10 for pruning shears. Allow 1 to 2 hours for pruning.

Inspect the underside of garage and outbuilding roofs for water damage, which can point the way to a roof leak. Small cracks in the foundation should be filled with the appropriate caulk. Maintain a proper grade around the buildings to ensure sufficient drainage. This may require the addition of soil.

Twice a year, check the automatic reverse safety feature on the garage door to make sure it works properly, urges Cloninger. Check to see that the door has no bent casters and that it rolls smoothly in the tracks. Perform a visual check of bolts for snugness. In the case of attached garages, proper weather stripping at the base of the door can greatly improve a home’s energy efficiency.

Read more: http://www.houselogic.com/articles/your-guide-outdoor-maintenance-south/#ixzz1DxJZ28uo

Mortgage rates continue upward climb

2011-02-11T10:16:00.000-05:00

Freddie Mac says 30-year fixed-rate mortgage rates averaged 5.05 percent this week, up from 4.8 percent last week. That’s the highest rate since April.

A 15-year fixed mortgage averaged 4.29 percent, up from 4.08 percent last week.

Adjustable-rate mortgages also rose with a one-year ARM averaging 3.35 percent.

“Long-term bond yields jumped on positive economic-data reports, which placed upward pressure on mortgage rates this week,” says Frank Nothaft, chief economist at Freddie Mac (OTCBB:FOMC).

Meanwhile, the National Association of Realtors says the median price of an existing home rose in most cities during the fourth quarter. That wasn’t the case in Charlotte for January. The Charlotte Regional Realtor Association the average sales price was $188,147 in January, down 3 percent from December.

Charlotte Business Journal
Date: Friday, February 11, 2011, 9:39am EST

Kannapolis' Center City Master Plan Unveiled

2011-02-09T09:48:00.003-05:00

After months of thoughtful development, the City of Kannapolis is ready to release its new Center City Master Plan. This document has been prepared to provide the City of Kannapolis with a prioritized set of goals for the ongoing development and revitalization of the Center City.

Beginning with a joint meeting of the Kannapolis City Council and Planning Commission, this document will be shared with the public during a few different public input sessions. For more information on these sessions, contact Planning Director Ben Warren.

The plan and its recommendations are intended to complement and support, not supplant, other efforts that the City has undertaken in the furtherance of the redevelopment of the area following the departure of Pillowtex and the establishment of the North Carolina Research Campus.

The Center City has experienced drastic changes in the past decade. Once home to the expansive Cannon Mills textile manufacturing complex (later Pillowtex) and a thriving retail/factory outlet base that focused on home furnishings and textiles, today’s Center City is an emerging hub for scientific research.

This transformation has dramatically changed the face of the Center City. No longer is the landscape dominated by industrial buildings with their smokestacks towering over the mill houses that lie in their shadow, no longer do hundreds of cars drive in and out of the Center City at shift change, and no longer do the streets bustle with shoppers seeking bargains on high quality textiles and home furnishings. There is new energy around the emergent NC Research Campus in Center City and new priorities are required to support its development and success.

This plan will be used to focus the efforts of the City on those projects and issues that can make the most positive impacts on the future of Center City. And like all good plans, this is a living document that will need to be evaluated and updated as time passes to account for changing realities in the economy, City priorities and to account for the growth of the Center City.

To read the plan, please click here
http://www.cityofkannapolis.com/article_2011_01_28/CenterCityMasterPlanDraft20110126.pdf

New-Home Recovery Seen as Post-Super Bowl Selling Season Starts

2011-02-08T12:04:00.000-05:00

Homebuilder executives and economists predict a post-Super Bowl bounce in demand for residential construction as Americans turn their attention from football to another national pastime: house hunting.

The chief executive officers of six of the 10 largest U.S. homebuilders cited the potential of a sales comeback in the spring, traditionally their strongest season, during conference calls in the last four weeks. Housing forecasts from Fannie Mae and the Mortgage Bankers Association show the new-home market will begin a rebound that will last through at least 2012.

A revival in demand for new houses after record-low sales in 2010 may bolster a U.S. economy that’s 19 months into a recovery. Residential construction is a key factor in gross domestic product because it requires the manufacturing of home components such as stoves, cement, tile and furnaces. Richard DeKaser, an economist at Boston-based Parthenon Group, said he expects the homebuilding industry will this year make its first positive contribution to GDP since 2005.

“The spring market is going to be the first test of the proposition that there’s an underlying improvement in new-home fundamentals,” DeKaser said in an interview. “If we don’t see the needle move, it will be very discouraging.”

New-home sales probably will rise 20 percent to 385,000 this year, said David Crowe, chief economist for the National Association of Home Builders in Washington. Fannie Mae, the world’s largest mortgage buyer, projected an 18 percent gain, and the Mortgage Bankers Association estimated a 10 percent advance, according to forecasts posted on their websites.

‘Much Better’ Season

D.R. Horton Inc., the second-biggest builder by revenue, is “locked and loaded” to meet an upswing in demand, Chief Executive Donald Tomnitz said on a Jan. 27 conference call. The 62-year-old CEO, a former banker and U.S. Army captain not known for rosy predictions, said he is “anticipating a much better spring selling season” than last year.

The optimism couldn’t have come at a darker moment for the new-home market. The number of newly constructed houses sold per month fell to 20,000 in November, the fewest of any time in 47 years of Commerce Department data. The tax credit that boosted sales at the start of last year is gone, and cut-rate prices on foreclosures are drawing buyers to existing properties.

Tougher loan requirements by banks may also limit demand. At 2010’s end, lenders tightened mortgage credit standards by the most in three years, according to the Federal Reserve Senior Loan Officer Survey. Borrowing costs also are on the rise after the average rate for a 30-year fixed mortgage fell to a record 4.17 percent in November, based on data from Freddie Mac.

After Super Bowl

Spring is a popular time to buy because house hunters often want to have their home finished by July or August, before the start of the U.S. school year in September, said John Burns, CEO of John Burns Real Estate Consulting Inc. in Irvine, California. The weekend after the Super Bowl is traditionally when prospective buyers start looking, he said in an interview.

“If that’s a good weekend for the builders, then we’re going to have a good spring, and if we have a good spring, we’ll have a good year,” Burns said. “That’s the way it’s played out for years.”

In 12 of the last 14 years, the annual peak in new-home sales occurred in March or April, according to Commerce Department data. The exceptions were 2003, when the March start of the Iraq War captured Americans’ attention and caused people to delay house hunting, and 2009, when the tax credit that originally expired in November boosted demand later in the year.

Sales are counted by the Commerce Department at the time of contract, while homebuilders book revenue once the transaction is completed.

Good, Not Great

“The contracts the builders will be writing in the next few weekends will be a leading indicator of their closings for later in the year,” Burns said. “It’s probably going to be a good year -- not a great year.”

Residential investment probably will increase 9.6 percent in 2011 after five years of declines, based on the median forecast of 30 economists at a Federal Reserve Bank of Chicago symposium in December. Housing starts likely will jump 17 percent to a three-year high of 688,000 in 2011, led by a gain in the construction of single-family houses, said Crowe of the National Association of Home Builders.

“The sales pace for new homes will improve as we move through the spring, unless something comes along to derail the economy,” said James Wilson, director of research for JMP Securities LLC in New York. “Demand seems to be coming back.”

Economic Contribution

The real estate market’s collapse reduced residential investment’s share of the economy to 2.2 percent in 2010’s fourth quarter, the lowest since records began in 1946, from a 55-year peak of 6.3 percent in the last three months of 2005, according to the Bureau of Labor Statistics. Housing that year was a larger contributor to GDP than national defense spending.

A rise in homebuilding will help boost jobs for workers who construct houses and also for people in industries supplying the appliances that go into them. About 430,000 residential building jobs evaporated after the housing crash began in 2006 -- a 43 percent decline in four years -- while appliance manufacturing jobs fell 17 percent in the same period, according to the Bureau of Labor Statistics. The overall economy lost 7.8 million jobs, or 5.7 percent of the workforce, after reaching a 2007 high.

The drop in values after the crash will create roadblocks for potential buyers who have their own properties to sell, said Thomas Lawler, a housing consultant in Leesburg, Virginia.

Price Decline

Home prices in December were 27 percent below the all-time high of July 2006, according to the National Association of Realtors. That has resulted in about a quarter of homeowners with mortgages owing more than their property is worth, according to CoreLogic Inc. in Santa Ana, California.

“Traditionally, one of the strongest parts of the new-home market is the trade-up buyer,” Lawler said in an interview. “A lot of people who would like to trade up don’t have equity in their homes.”

For those who are able to move, and can sell their current residence, new houses have a draw that existing homes don’t have, according to Parthenon’s DeKaser. They fulfill the dream of many people to build from the ground up, he said.

“That’s the strongest thing this segment has going for it -- some people attach a premium to having a home that no one else has lived in, with all new walls and new floors,” he said. “Even if they can get an existing home for cheaper, they’re willing to pay the price for new.”

Source: Bloomberg Businessweek

Weichert.com Earns International Award for Website Excellence

2011-01-28T10:40:00.002-05:00

January 25, 2011 // Franchising.com // MORRIS PLAINS, N.J. – Weichert, Realtors recently received the Bronze Award in the Real Estate category of the 10th annual International iNOVA Awards competition for its website, Weichert.com. The iNOVA judges concluded that Weichert.com, one of the nation's most visited real estate sites, sufficiently surpassed the required criteria in all areas of the competition.

"We are pleased to receive yet another honor for our customer website," said Jim Weichert, president and founder of Weichert, Realtors. "An award of this degree helps validate Weichert.com as a trusted, convenient and comprehensive online source for potential home buyers and sellers."

The iNOVA Award symbolizes the energy of numerous disciplines that inspire corporate website excellence. The mission of the iNOVA Awards is to recognize and promote achievement in creative web design, originality of content and functional performance. Gold, Silver, Bronze, and Honors awards were presented to the top third scoring entries. Websites were evaluated for content, design, and technology. Preliminary judging was carried out by international panels of web developers, designers, site builders and interactive media specialists.

Last summer Weichert.com received the Interactive Media Awards (IMA) Outstanding Achievement Award, earning a score of 465 out of a total possible score of 500 points.

Weichert.com regularly attracts more than 3 million visitors each month and consistently ranks as a top site among all real estate companies for the length of time that visitors spend at the site, according to HitwiseÒ, which monitors the activity of major Web sites.

Weichert has nearly 18,000 sales associates in more than 500 company-owned and franchised sales offices in key markets throughout the U.S. A family of full-service real estate and financial services companies, Weichert helps customers buy and sell both residential and commercial real estate, and streamlines the delivery of mortgages and home and title insurance. For more information, Weichert's customer service center can be reached at 1-800-USA-SOLD or at Weichert's Web site, www.weichert.com. Each Weichert franchised office is independently owned and operated.

NC Legislature Advances New Rules for HOAs

2011-01-24T14:28:00.002-05:00

By Matt Tomsic, Star-News, Wilmington, N.C.

Jan. 20—A General Assembly House committee approved a draft bill Wednesday that would provide more stringent rules governing how home owners associations conduct business.

Member of the House Select Committee on Home Owners Associations debated the draft legislation and added to it during its final committee meeting.

Rep. Jennifer Weiss, D-Wake, said the draft legislation should get bipartisan support when it’s introduced to the General Assembly.

“I’m hoping it will be legislation that Democrats and Republicans will work on together,” Weiss said.

She also said the legislation provides more protections for home owners who are governed by a home owners association.

The draft bill, entitled the Planned Community Act, would create additional factors HOA boards would have to consider when determining to enforce covenants; require boards to open their meetings and records; and change the lien and foreclosure process. The legislation will also require the Attorney General’s Office to collect complaints lodged against home owners associations.

If the law is enacted, home owners association board members will have to consider if the covenant or rule is inconsistent with the law, if it’s justifiable to spend association resources to punish the violator and if it’s in the association’s best interest to enforce the covenant, among other criteria, when determining whether to penalize home owners who violate covenants.

The draft bill also requires board meetings to be open and gives home owners recourse if the board ignores a request for a special meeting from 10 percent of the association’s home owners. In that case, the home owners can notify the rest of the community and hold the meeting without the board. The draft law also requires associations to keep “detailed records of receipts and expenditures,” accounting records, minutes of all meetings, financial statements and tax returns and copies of current contracts, among other records.

The board also has to make those records available after a 15-day notice from a lot owner or home owner.

The draft bill also changes the process associations can use to file liens and foreclose on a home. The bill requires assessments to be 90 days late before an association can begin the lien process, and the board must offer home owners a payment plan for past due bills. The draft bill requires the board to vote on foreclosing on a specific lot or home. The board also can’t begin foreclosure proceedings unless the debt is past due and the home owner refused to accept a payment plan.

Committee members also made changes to the draft legislation during the meeting, requiring parallel changes to be made to the Condominium Act, tasking the Attorney General’s Office with keeping and tracking home owner complaints, defining payment plans, clarifying that late fees stop when a payment plan is adopted and requiring boards to keep meetings of executive, or closed, sessions.

Weiss said she and co-chairman Rep. Bill McGee will find co-sponsors to the bill and eventually introduce it during the General Assembly’s session.

She thinks the draft bill has good transparency measures.

“We’ve got a lot of work ahead of us to keep this legislation moving forward,” Weiss said. “We’ve taken a big step with this proposal.”

Rate on 30-Year Fixed Mortgage Rising

2011-01-24T14:17:00.001-05:00

NEW YORK—Rates on the 30-year fixed mortgages rose slightly this week, following increases in Treasury yields.

Freddie Mac says the average rate rose to 4.74 percent this week from 4.71 percent the previous week. It hit a 40-year low of 4.17 percent in November.

The average rate on the 15-year loan slipped to 4.05 percent from 4.08 percent. It reached 3.57 percent in November, the lowest level on records starting in 1991.

Rates have changed little in the new year after spiking more than half a percentage point in the last two months. Investors sold off Treasury bonds during that stretch, driving yields lower. Mortgage rates tend to track the yield on the 10-year Treasury note.

A service of YellowBrix, Inc.

Understanding the Pre-Approval Process

2011-01-21T09:44:00.002-05:00

By Karin Beuerlein, FrontDoor.com | Published: 1/28/2008

Loan shopping is as intricate a process as house shopping, and the terminology is often confusing. The terms "pre-qualification" and "pre-approval" sound like the same thing, but they're not. And in fact, neither pre-qualification nor pre-approval means a bank actually has to give you the loan.
Clear as mud, right? Don't worry -- the loan approval process is fairly straightforward, as long as you understand a few key points:

•Pre-qualification is the first step you can take -- but it's not mandatory. If you want a ballpark idea of how much a bank will loan you so that you can shop within your price range, pre-qualification is a quick and easy way to find out. Most banks and credit unions will do this over the phone, and your credit history will usually not be checked. A loan officer asks you about your income, assets, debts and projected down payment and then calculates what kind of loan you'd likely qualify for. The process takes just a few minutes.

•Pre-approval is more involved and usually requires an appointment. In this step, the lending institution gathers all the information it requires to offer you a loan, and your credit report will be checked; you may be charged a fee for this at the time of the appointment. You'll need to bring some items with you to document your identity and your assets:

1.A copy of your most recent bank statements (this includes your daily checking account as well as any money market, savings or other accounts)
2.Your most recent W-2 (or entire tax return if you're self-employed)
3.Proof of IRAs or retirement accounts and their current balances
4.Ditto for any stocks or mutual funds you own outside of retirement accounts
5.Your driver's license
6.The most recent month's paystub(s) from your job
7.An application fee (this depends on the lender)
•The result of the pre-approval process is the good faith estimate. At the end of the pre-approval process, if the bank looks you over and likes what it sees, you'll receive what's called a good faith estimate (GFE), which is a brief document spelling out the likely terms of the loan, including the interest rate, loan type (fixed-rate, adjustable and so on) and closing costs.

•The pre-approval step may be a bit time-consuming, but you'll need to complete it with a few lenders in order to comparison-shop. Without a GFE, you can't truly compare terms among lenders. And it pays to compare -- for a loan as large as a mortgage, little things like the interest rate make a big difference. To negotiate for a great interest rate, reduced closing costs, or lender-paid private mortgage insurance, you have to make lenders compete with each other. (Lining up GFEs is also a good way to spot lenders who charge unnecessary fees.) So don't just accept the first offer you get -- make sure it's a good one by soliciting several in a short time period. Don't worry about nicking your credit score with several loan applications, because credit scoring recognizes multiple checks in quick succession as part of the loan-shopping process and does not penalize you.

•Pre-approval does not mean the bank guarantees you the loan. It just means that you're approved to get loan -- unless something goes wrong. Commitment to the loan generally comes after the bank has had the house in question appraised to make sure the price you're paying isn't higher than the home's market value. This protects them in case you default on the loan, which would leave them in the red even if they evicted you and sold the property. Banks also check to make sure the home has a clear title and that you've insured it for replacement value.

Beautiful New Listings!

2011-01-14T16:00:00.000-05:00

http://myemail.constantcontact.com/New-from-Weichert-Craven-.html?soid=1102605779379&aid=dH0z54VdR-w

HUGE Price Improvements

2011-01-06T09:59:00.000-05:00

http://myemail.constantcontact.com/HUGE-Price-Improvements-.html?soid=1102605779379&aid=yQJNLNslOLM

Americans Still in Love with Home Ownership in 2011

2011-01-05T11:41:00.001-05:00

WASHINGTON (December 27, 2010)—2010 has been a year of real estate contrasts. The market has seen a gradual stabilization of sales and prices, yet challenges facing the nation have led some to question the value of home ownership for families, communities, and the country.

“People are passionate about the American dream of home ownership, and this passion underscores how important home ownership is to our nation,” said NATIONAL ASSOCIATION OF REALTORS® President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I. “Owning a home has long-standing government support in this country because home ownership benefits individuals and families, strengthens our communities, and is integral to our economy.“

In the first half of the year, the extended $8,000 first-time home buyer tax credit and expanded home $6,500 tax credit for repeat buyers helped encourage sales and stabilize home prices. Home buyers in 2010 have also benefited from historic affordability levels, with the combination of record low mortgage rates coupled with rising household incomes. The NAR Housing Affordability Index currently shows that a median-income family with a down payment of 20% has 184.2% of the income required to purchase a median-priced home.

“Low interest rates mean real money for today’s home buyers,” said Phipps. “Buyers who purchased a median-priced home five years ago with an FHA mortgage requiring a 3% down payment would have a monthly mortgage payment of $1,650. With today’s interest rates and median home prices, that same buyer would pay $1,150 per month—a $500 savings. That’s a savings of $6,000 per year.”

Despite record affordability and buyer incentives, rising foreclosure rates and concerns about proper foreclosure procedures led some to question whether owning a home was a good personal decision.

“Home ownership didn’t create the foreclosure crisis—Wall Street greed and irresponsible lending practices did,” said Phipps. “The decision to own a home is a very personal one, but over the long term, owning a home is one of the best ways to build long-term wealth, in addition to providing numerous social benefits that include reduced crime rates, improved childhood education, and increased stability. After all, a fixed-rate mortgage might last 15 to 30 years; renting is forever.”

Government support of programs and initiatives that encourage home ownership have also been called into question. The deductibility of mortgage interest is one example, with critics suggesting that the mortgage interest deduction primarily benefits the wealthy, while in fact, the MID benefits primarily middle- and lower income families—almost two-thirds of those who claim the MID are middle-income earners. Sixty-five percent of families who claim the MID earn less than $100,000 per year, and 91% who claim the benefit earn less than $200,000 annually.

“The ability to deduct the interest paid on a mortgage can mean significant savings at tax time,” said Phipps. “For example, a family who bought a home this year with a $200,000, 30-year, fixed-rate mortgage, assuming an interest rate of 4%, could save nearly $3,500 in federal taxes when they file next year. That’s money they could use to pay down other debts, supplement their children’s college savings account, or put into savings themselves.”

Despite current economic challenges, most Americans still aspire to the dream of home ownership.

According to a survey conducted earlier in the year by Bankrate.com, 90% of respondents said they had no regrets buying their current home. And just this month, a Fannie Mae survey found that most Americans—both those who currently own their homes and those who rent—strongly aspire to own a home and to maintain home ownership.

Source: NAR

414 Brook Avenue Open Sunday, January 9, 2 - 4 p.m.

2011-01-04T11:20:00.002-05:00

Please join us for a tour of this beautiful 4 bedroom, 2 1/2 bath home in Mountain Brook Estates! Open Sunday, January 9, 2 - 4 p.m. Questions? Please call Debbie Little at 704.506.6943. See you there!

Tax Benefits of Homeownership

2011-01-04T11:19:00.001-05:00

The tax deductions you’re eligible to take for mortgage interest and property taxes greatly increase the financial benefits of homeownership. Here’s how it works.
Assume:
$9,877 = Mortgage interest paid (a loan of $150,000 for 30 years, at 7 percent, using year-five interest)
$2,700 = Property taxes (at 1.5 percent on $180,000 assessed value)
______

$12,577 = Total deduction

Then, multiply your total deduction by your tax rate.
For example, at a 28 percent tax rate: 12,577 x 0.28 = $3,521.56
$3,521.56 = Amount you have lowered your federal income tax (at 28 percent tax rate)

Note: Mortgage interest may not be deductible on loans over $1.1 million. In addition, deductions are decreased when total income reaches a certain level.

10 Ways to Prepare for Homeownership

2011-01-04T11:15:00.000-05:00

1. Decide what you can afford. Generally, you can afford a home equal in value to between two and three times your gross income.

2. Develop your home wish list. Then, prioritize the features on your list.

3. Select where you want to live. Compile a list of three or four neighborhoods you’d like to live in, taking into account items such as schools, recreational facilities, area expansion plans, and safety.

4. Start saving. Do you have enough money saved to qualify for a mortgage and cover your down payment? Ideally, you should have 20 percent of the purchase price saved as a down payment. Also, don’t forget to factor in closing costs. Closing costs — including taxes, attorney’s fee, and transfer fees — average between 2 and 7 percent of the home price.

5. Get your credit in order. Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately. A credit report provides a history of your credit, bad debts, and any late payments.

6. Determine your mortgage qualifications. How large of mortgage do you qualify for? Also, explore different loan options — such as 30-year or 15-year fixed mortgages or ARMs — and decide what’s best for you.

7. Get preapproved. Organize all the documentation a lender will need to preapprove you for a loan. You might need W-2 forms, copies of at least one pay stub, account numbers, and copies of two to four months of bank or credit union statements.
8. Weigh other sources of help with a down payment. Do you qualify for any special mortgage or down payment assistance programs? Check with your state and local government on down payment assistance programs for first-time buyers. Or, if you have an IRA account, you can use the money you’ve saved to buy your fist home without paying a penalty for early withdrawal.
9. Calculate the costs of homeownership. This should include property taxes, insurance, maintenance and utilities, and association fees, if applicable.

10. Contact a REALTOR®. Find an experienced REALTOR® who can help guide you through the process. Call Weichert, REALTORS – Craven & Company at 704.788.1122 for all your real estate needs!

Could Rising Mortgage Rates Spur Housing Rush?

2011-01-04T11:05:00.000-05:00

Mortgage rates have been rising ever since November 2010, when lows of 4.42 percent were reported. Bankrate.com recently reported a rise to 5.02 percent in 30-year fixed rate loans, which is the second time in three weeks rates have crossed the 5 percent mark--many experts say signaling the end to the 4 percent mortgage rate era.

Forecasters predict mortgage rates to hover in the 5-6 percent range in 2011.

Yet, some industry experts say the rise in mortgage rates may stimulate a sluggish housing market.

The rising rates create an urgency for potential buyers. They’ll have more incentive to buy soon before mortgage rates go any higher.

After all, higher interest rates mean buyers will pay more for their mortgages. Greg McBride, chief economist at Bankrate.com, told CNNMoney.com that when rates rise 4.25 percent to 5 percent, it takes away 9 percent of the purchasing power of buyers.

Lawrence Yun, chief economist of the National Association of REALTORS®, doesn't foresee a moderate hike in mortgage rates as a negative for the industry. Instead, he says the real mortgage challenge is getting lenders to approve creditworthy buyers for a loan.

"It's less about rates than it is about underwriting standards ... If lenders return to more normal, safe underwriting standards for creditworthy buyers, there would be a bigger boost to the housing market and spillover benefits for the broader economy," Yun said.

Source: “Kiss 4% Mortgage Rates Goodbye,” CNNMoney.com (Dec. 30, 2010)

State is investigating GMAC's foreclosure procedures

2010-09-30T09:28:00.000-04:00

The state Attorney General's Office is examining GMAC Mortgage for "questionable tactics" that may have led to undeserved foreclosures on some homeowners.

The mortgage giant replied that a "procedural error" in its foreclosure process was addressed months ago, and the error did not result in inappropriate foreclosures.

In a letter sent to GMAC this week, state Assistant Attorney General Philip Lehman said the state has received information indicating that GMAC Mortgage employees "routinely signed off on large numbers of [foreclosure] affidavits" without properly reviewing them.

On Friday, four days before the state's announcement, GMAC Mortgage released a statement saying it had discovered a "procedural error" in "certain affidavits required in certain states."

Read more: http://www.newsobserver.com/2010/09/29/708313/state-is-investigating-gmacs-foreclosure.html#ixzz111Fnyh7u

Ford Craven, REALTOR
www.WeichertCraven.com

PROFESSIONAL DESIGNATIONS:
GREEN, National Association of REALTORS Sustainable Property Designation
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GRI, Graduate REALTOR® Institute
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QSC, Quality Service Certified

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All communications herein are merely for purposes of negotiating and in no way constitute a valid and enforceable contract.

Join Debbie Fink and Ford Craven for a Broker Open House June 15!

2010-06-15T09:28:00.000-04:00

This is today! Come and see us for lunch, dessert and prizes! Thanks!

---------- Forwarded message ----------
From: Weichert, REALTORS - Craven & Company <barbijones@weichert.com>
Date: Mon, Jun 14, 2010 at 3:26 PM
Subject: Join Debbie Fink and Ford Craven for a Broker Open House June 15!
To: fcraven@weichert.com

Broker Open House

Tuesday, June 15

11:30 a.m. - 2:00 p.m.

Mark your calendars now to join us for three wonderful home tours!

810 Towncreek Place

6BD/4.5BA

$789,000

MLS# 938258

Listing by Debbie Fink

Lunch will be served poolside featuring delicious hamburgers and hot dogs by none other than Tony Sherrill!

342 Beckwick Lane

4BD/3BA

$489,900

MLS# 914382

Listing by Debbie Fink

Register for one of two $50 giftcards provided by
Judy Gilbert - Cunningham & Company.

To be eligible for drawings, please visit all three homes!

267 Charter Court

4BD/3.5BA

$339,900

MLS# 943330

Listing by Ford Craven

Enjoy delicious desserts!

Debbie Fink, Broker/REALTOR Weichert, REALTORS - Craven & Company Office: 704.886.1427 dfink@weichert.com

Ford Craven, Broker/REALTOR Weichert, REALTORS - Craven & Company Office: 704.886.1432 fcraven@weichert.com

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Federal Program to Encourage Short Sales

2010-03-15T09:48:00.000-04:00

Beginning April 5, the Obama administration will encourage delinquent borrowers to avoid foreclosure and instead give up their homes in short sales by streamlining the process.

The program will offer a cash payment to the home owner, as well as to the servicer and second-lien holder; and protect borrowers from future lender lawsuits for the unpaid mortgage balance.

To curtail fraud, lenders will have to consult real estate practitioners to assess home value and minimum acceptable offer; they then must accept any offer that is equal to or higher than that.

Source: The New York Times, David Streitfeld (03/08/10)

FHA Head: Don't Raise Down Payments

2010-03-15T09:47:00.000-04:00

Now is not the time to raise the downpayment requirement on a Federal Housing Administration loan, warns FHA Commissioner David Stevens.

Stevens, testifying before a committee of the U.S. House, said his agency would probably insure 300,000 fewer home loans per year if the mandatory down payment was raised from 3.5 percent to 5 percent — a 40 percent increase.

Congress has been considering various ways to put FHA on a sounder financial footing. Besides increasing the downpayment requirement, another suggestion under discussion is raising the upfront mortgage insurance premium to 2.25 percent of the loan amount, up from 1.75 percent currently.

The National Association of REALTORS® also opposes the proposal to raise the mandatory down payment for an FHA loan. The FHA remains financially strong because it has taken steps to ensure solid underwriting standards and responsible lending practices, said Charles McMillan, NAR immediate past president, in testimony before the House Subcommittee on Housing and Community Opportunity.

“As the leading advocate for housing issues, NAR believes that one of the best ways Congress can help strengthen FHA is to quickly consider and pass legislation that would make current loan limits permanent,” McMillan said. “It’s important to note that higher balance FHA loans perform better than lower balance ones. While some argue that higher balance loans put taxpayers at risk, such loans actually strengthen the program and reduce risk to the fund.”

Explaining that FHA has played an important role in the recent housing and economic crisis by filing the gap left by private lenders, McMillan said FHA insured almost 30 percent of single-family mortgages in 2009 and more than 50 percent of first-time buyer loans. “Historically, FHA’s market share has hovered between 10 and 15 percent of all loans. And when the private market is strong enough to return, we welcome a reduced FHA market share,” he said.

McMillan said NAR was also concerned that FHA wanted to decrease seller concessions to 3 percent. Reducing seller concessions could put homeownership out of reach for many buyers, he said, because it could require buyers to pay more at closing.

Fewer Sellers Are Cutting Prices

2010-03-10T16:29:00.001-05:00

The prices on 19 percent of homes for sale as of March 1st have been reduced at least once, the lowest percentage in the last year, according to Trulia.com.

In October and November, when the market was feeling the effect of the tax credit, 26 percent of sellers cut their asking prices.

“Better pricing is leading to less time on the market, less price reduction, and in a lot of markets we're starting to see bidding wars on lower end properties," said Ken Shuman, spokesperson for Trulia.

Trulia calculates that these U.S. cities experienced the biggest decline in price reductions from Feb. 1, 2010 to March 1, 2010:

* Charlotte, N.C.
* Colorado Springs, Colo.
* Houston
* Raleigh, N.C.
* Jacksonville, Fla.
* Albuquerque, N.M.
* Tucson
* Omaha, Neb.
* San Antonio, Texas

Source: Trulia.com (03/09/2010)

Claim Your Homebuyer Tax Credits

2010-03-04T15:00:00.001-05:00

Whether a first time homebuyer or a longtime owner, you may be eligible for a homebuyer tax credit if you meet IRS guidelines.

Do You Qualify?
* You meet IRS income and homeownership rules.
* You sign a binding contract by April 30, 2010.
* You close on a home purchase by June 30, 2010.

Some first-time buyers and longtime owners may be able to claim a federal homebuyer tax credit on a principal residence bought in 2009 or early 2010. Eligibility depends on a number of factors, including income, homeownership status, and the exact purchase date of the home.

To be considered a first-time buyer by the IRS, you mustn’t have owned a home for the three years prior to your purchase. Longtime owners must have lived in their homes for five consecutive years during the past eight years. Revised rules apply to those who buy between Nov. 7, 2009, and April 30, 2010. Buyers who made purchases on or before Nov. 6, 2009, are covered under an older set of guidelines.

New rules for first-time homebuyers

First-time buyers who purchase a home between Nov. 7, 2009, and April 30, 2010, may be entitled to a federal tax credit worth 10% of the sale price or $8,000, whichever is lesser. Income restrictions apply. The tax credit for joint filers begins to phase out at a modified adjusted gross income of $225,000 ($125,000 for individual taxpayers). The credit disappears entirely at $245,000 for joint filers ($145,000 for individuals).

While first-time buyers must enter into a binding contract to purchase a principal residence by April 30, the closing can take place as late as June 30, 2010. The home can’t cost more than $800,000.

Qualifying purchases in 2009 can be claimed on your 2008 or 2009 return. File an amended return for 2008. Purchases in 2010 can be claimed on your 2009 or 2010 return. To get the credit for the 2009 tax year on a purchase that closes after April 15, 2010, either request an automatic filing extension or file an amended 2009 return.

The first-time homebuyer tax credit is “refundable,” according to Ken Burstiner, a CPA at Weiser LLP in New York City. That means you can earn it even if you owe no federal tax, the credit exceeds your total tax liability, or you have little income. Claim the credit on IRS Form 5405, which should take less than an hour to fill out. It’s a good idea to consult a tax adviser. H&R Block’s average fee to prepare a tax return is $187.

Old rules for first-time homebuyers

First-timers who bought a home between Jan. 1, 2009, and Nov. 6, 2009, may also be eligible for a federal tax credit worth up to $8,000. A tax credit reduces your tax bill or increases your refund dollar for dollar. In general, whether under the old rules or the new rules, you’ll be required to repay the full value of the credit to the IRS if you don’t maintain the home as your principal residence for three years.

First-time buyers subject to the old rules face tighter income limit. The phase-out kicks in for joint filers when modified adjusted gross income hits $150,000 ($75,000 for individual taxpayers). It disappears entirely at $170,000 for joint filers ($95,000 for individuals). Married filing separately taxpayers can claim only up to half of the $8,000 credit.

First-time buyers in 2008 were subject to a different tax-credit program. Homes purchased after April 8, 2008, and before Jan. 1, 2009, were eligible for a credit worth the lesser of $7,500 or 10% of the home’s purchase price. Income limits and phase-out ranges were the same as those for first-time buyers between Jan. 1, 2009, and Nov. 6, 2009.

The biggest difference between 2008 and 2009 was that the tax credit in 2008 really functioned as an interest-free loan that must be paid back over 15 years. The first of the annual installments should come due on the 2010 tax return filed in 2011. With few exceptions, if your home ceases to be your main residence during those 15 years, you have to pay back the outstanding amount with the subsequent tax return.

Tax credit for longtime homeowners

If you’re a longtime homeowner—meaning you’ve lived at your principal residence for five consecutive years out of the last eight—you may qualify for a homebuyer tax credit worth up to $6,500. You must purchase a new principal residence between Nov. 7, 2009, and April 30, 2010. Like the first-time homebuyer tax credit that applies to these dates, you can settle as late as June 30, 2010, as long as you have a binding contract by April 30.

The same $800,000 cap on the purchase price applies to longtime homeowners, as do the same income restrictions. The credit begins to phase out for joint filers at modified adjusted gross income of $225,000 ($125,000 for individuals), and disappears at $245,000 ($145,000 for individuals). Married couples filing separately are eligible for up to half of the $6,500 credit.

For both first-time and longtime buyers who want to claim the tax credit for a purchase made after Nov. 6, 2009, the IRS requires proof. Attach a copy of the settlement statement you received at closing to your return. You must be at least 18 years old.

Other restrictions and provisions

As long as they serve as principal residences, single-family homes, townhouses, co-ops, and condos are all eligible for a tax credit. Mobile homes may be eligible for the credit, even if the land itself is leased. Owning a vacation home or rental property doesn’t disqualify you as a first-time homebuyer, but you do have to make it clear such properties were never your principal residence.

You won’t be eligible for the tax credit if you’re buying from a close relative. For example, if your mother goes into a nursing home and you buy her house from her, you can’t claim the credit. Close relatives include parents, grandparents, children, grandchildren, your spouse, and your spouse’s family.

This article provides general information about tax laws and consequences, but is not intended to be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances. Readers should consult a tax professional for such advice, and are reminded that tax laws may vary by jurisdiction.

Richard J. Koreto, a freelance writer, is the former editor of several professional financial magazines and the author of “Run It Like a Business,” a practice management book for financial planners. He and his wife own a pre-Civil War house in Rockland County, N.Y.

IRS Clarifies What's Needed to Claim Tax Credit

2010-02-27T15:25:00.001-05:00

The Internal Revenue Service has clarified which documentation taxpayers need to submit to claim the first-time and move-up homebuyer tax credit.

While the IRS is still requiring the filing of Form 5405, it is not demanding that all parties’ signatures be on the HUD-1 settlement document in areas where requiring both the buyer and the seller to sign the document isn’t common.

The IRS clarification says: "In areas where signatures are not required on the settlement document, the IRS has clarified that it will accept a settlement statement if it is completed and valid according to local law. … The IRS encourages those buyers to sign the settlement statement prior to attaching it to the tax return.”

For repeat buyers, the IRS is seeking documentation that home buyers have lived in the previous property for a consecutive five of the past eight years. Proof can include property tax records, home owner insurance records, or mortgage interest statements.

Source: Washington Post (02/20/2010)

Foreclosure Bargains Getting Harder to Find

2010-02-27T15:23:00.000-05:00

Home buyers hoping to snag a really good deal on a foreclosed home are finding it increasingly difficult because supply is shrinking.

The number of foreclosures that are available for sale nationwide fell to 617,000 in December, down from 845,000 in November 2008, reports Barclays Capital.

Not only have attractive homes in popular neighborhoods already been snapped up, but also government help for distressed buyers is delaying more foreclosures.

Demand is driving up prices. Investors say typical prices have climbed from 75 percent of appraised value to 85 percent or higher when there are bidding wars.

Source: The Wall Street Journal, James R. Hagerty (02/23/2010)

Bankers: The End of Foreclosure Crisis Is Near

2010-02-27T15:17:00.000-05:00

The Mortgage Bankers Association is seeing signs that the foreclosure crisis is ending.

“The continued and sizable drop in the 30-day delinquency rate is a concrete sign that the end may be in sight,” says Jay Brinkmann, MBA’s chief economist, in a published statement.

Brinkmann said that normally there is a large spike in short-term mortgage delinquencies at the end of the year because of high heating bills and holiday expenditures. This year, there was not only no spike, but the 30-day delinquency rate actually fell from 3.79 percent to 3.63 percent.

Thirty-day delinquencies have historically been a leading indicator of serious delinquencies and foreclosures, Brinkmann said.

“[This] gives us growing confidence that the size of the problem now is about as bad as it will get,” he said.

Source: Mortgage Bankers Association (02/19/2010)

Could the Tax Credit Be Extended Again?

2010-02-25T11:15:00.000-05:00

The pressure is increasing on Congress to renew the homebuyer tax credits for a third time.

The first $7,500 tax credit was passed in 2008 and required first-time buyers to repay the credit over 15 years. A few months later in 2009, Congress expanded the credit to a maximum of $8,000 that didn’t have to be paid back.

At the end of last year, Congress extended the benefit again until April 30 with an extra two months on top of that to close. A new credit of $6,500 was added for move-up buyers, too.

Now representatives of the housing industry are lobbying for another extension. Some experts, including Mark Zandi, chief economist at Moody’s Economy.com, who supported the earlier credits, think the time has come to let it go.

“It’s worn out its benefit,” he says. “If you extend it again, it isn’t going to do much, and what you’re doing is providing a tax break to folks who bought anyway.”

Source: The Wall Street Journal, Nick Timiraos (02/22/2010)

Housing Affordability Hovers Near Record-High Level

2010-02-24T17:21:00.000-05:00

WASHINGTON, Feb. 17—Nationwide housing affordability, bolstered by favorable interest rates and low house prices, closed out the year near its highest level since the series was first compiled 18 years ago, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI).

The HOI showed that 70.8% of all new and existing homes sold in the final quarter of 2009 were affordable to families earning the national median income of $64,000, slightly higher than the previous quarter and near the record-high 72.5% set during the first quarter of 2009. That’s up from 62.4% during the fourth quarter of 2008.

“Favorable mortgage rates and sliding house prices that have now started to stabilize nationally have both contributed to a record year for housing affordability in 2009,” said NAHB Chairman Bob Jones, a home builder from Bloomfield Hills, Mich. “With interest rates still hovering at low levels and the economy beginning to rebound, the federal housing tax credit will encourage even more first-time and repeat home buyers to enter the market and help further stabilize housing and the economy by creating new jobs,  stimulating home sales, and reducing foreclosures.”

Nationwide median appraisal fees

2010-02-23T16:21:00.000-05:00

With new FHA guidelines requiring participating lenders to ensure that appraisers are paid "reasonable and customary" fees, a la mode, inc. recently developed an online resource called the Appraisal Fee Reference (AFR). Using the data from verified and validated appraisals, the Appraisal Fee Reference reports the median appraisal fees for each of the 3,221 counties and districts in the fifty states, the District of Columbia, Puerto Rico, and Guam.

For compliance with HUD's new 2010 RESPA rules and the revised Good Faith Estimate, the AFR gives a lender a defensible basis for estimating closing costs on a GFE for loans using independent fee appraisers. As for the actual report, the February 2010 edition of the AFR reveals that the most expensive counties to get an appraisal were not in the major cities. Instead, counties in Alaska, Hawaii and Wyoming dominated the 50 most expensive locations.

Of the locations with the lowest fees, appraisers in Ohio were represented disproportionately, with 18 of the bottom 50 slots being taken by counties in the state. Four nearby states -- Pennsylvania, Kentucky, Illinois, and Wisconsin -- also had three to four counties each in the bottom 50.

First November-to-December increase in home prices since 2004

2010-02-23T16:20:00.000-05:00

The key findings of the December 2009 RPX Monthly Housing Market Report released today by Radar Logic Incorporated include the following:
· The RPX Composite price increased between November and December for the first time since 2004.
· The 25-metropolitan-area transaction count increased 44% relative to December 2008.
· Sales of foreclosed homes increased as a percentage of total sales during early December. This reversed the trend during the prior two months, when sales of distressed homes decreased as a share of total transactions.

The RPX Composite price increased in December 2009 on a month-over-month basis, marking the first time it has increased during the month of December since 2004. The RPX Composite tracks housing prices in 25 of the largest U.S. metropolitan statistical areas (MSAs).

On a month-over-month basis, the composite price for housing markets in the Northeast increased by 2%, while the Midwest composite decreased by 5%. The West composite price remained flat month over month, as price increases in San Francisco, Denver and, surprisingly, Las Vegas were offset by price declines in the other western cities. The composite price for the South also remained essentially flat month over month.

Home sales, as indicated by RPX transactions counts, increased in all 25 metropolitan areas covered by the report relative to a year prior. Home sales across all 25 cities have increased 44% year over year.

Obama pledges $1.5B for unemployed and underwater homeowners

2010-02-23T16:18:00.000-05:00

The administration announced a new initiative to help the nation's hardest hit housing markets. President Obama has allocated $1.5 billion in aid for states where unemployment is high and home prices have fallen more than 20 percent in the aftermath of the housing bubble.

The president is setting up an "innovation fund" for state housing agencies to develop assistance programs for underwater, as well as unemployed homeowners in their communities. There will be a formula for allocating funding among eligible states based on home price declines and unemployment rates.

According to House Speaker Nancy Pelosi, the money will go to support homeowners in California, Nevada, Arizona, Florida, and Michigan. The Treasury must approve each Housing Finance Agency's (HFA) program design, which can include direct assistance for the unemployed and borrowers who owe more than their home is worth, as well as programs that address the challenges of second liens. The Treasury is expected to announce maximum state level allocations in the next two weeks, along with rules governing the submission of program designs by HFAs.

Source: DSNEWS.com, Carrie Bay, (02/19/2010)

Charlotte home prices still struggle

2010-02-23T16:14:00.000-05:00

Charlotte-area home prices ended last year at a new low for this downturn but with a smaller decline than the previous year, based on a closely watched index released today.

As of December, area prices had fallen 3.8 percent compared with December 2008, according to the S&P/Case-Shiller Home Price Index. That’s an improvement over 2008, when Charlotte prices first turned negative, and the market saw a 7.2 percent decline, but still below the national decline of 2.5 percent for last year.

Month to month, Charlotte posted four gains last year, in the spring and summer, when the national housing market also showed signs of strengthening. Since August, the area has shown declines every month, compared with the previous month.

“As measured by prices, the housing market is definitely in better shape than it was this time last year…,” said David Blitzer, chairman of S&P’s index committee. “However the rate of improvement seen during the summer of 2009 has not been sustained.”

Charlotte-area home sales have been trending up, compared with extremely low levels late in 2008. But prices, by other measures, also remain down.

Housing here and nationwide is expected to continue struggling, amid high unemployment, weak job growth and rising foreclosures. The April 30 expiration of two big tax credits also could stall sales again and lead to more price declines.

Case-Shiller is an index, like the stock markets, not an actual price. For Charlotte, the December index reading of just under 118, was about the same as the level in June 2005. The index tracks the price of repeat sales, so it’s an especially precise measure of how home values are holding up.

Case-Shiller tracks sales nationwide, but only reports specific results for 20 markets. Charlotte’s 3.8 percent decline last year put it in the middle, with nine markets showing gains or smaller losses. San Francisco was the leader, with a 4.8 percent gain. Las Vegas, one of the hardest hit, ended with a loss of 20.6 percent.

By Stella M. Hopkins
shopkins@charlotteobserver.com
Posted: Tuesday, Feb. 23, 2010

Charlotte area home sales, prices up again

2010-02-17T17:11:00.001-05:00

Housing market logging gains
By Stella M. Hopkins
shopkins@charlotteobserver.com

The Charlotte-area housing market continued posting gains in January, with home prices and sales now showing several months of steady increases.

The average sales price last month was $200,592, up 6.1 percent from January 2009, according to results released Wednesday by the Charlotte Regional Realtor Association. That’s the third consecutive month with a gain and slightly stronger than the December increase, for transactions through the association’s Carolina Multiple Listing Services.

The number of houses, townhouses and condos sold last month rose 8 percent from a year ago during the deepest part of the slump. January marked the fourth month of sales gains and is particularly notable because it is typically a slow month.

The number of pending contracts – deals signed but not yet closed – was about the same as a year ago. However, pendings were up 25 percent from December, a sign of rising demand. Experts expect sales will strengthen through the spring, in part because of several hefty tax credits for deals signed by April 30.

Quick tips for saving money on utility bills

2010-02-17T17:06:00.000-05:00

By Tara McAlister
Posted: Sunday, Feb. 14, 2010

You know you're in trouble when your utility bill is more than your 401(k). Here are a few tips that should help:

Tighten your belt by tightening your home. Caulk around windows, apply weatherstrips to door frames and close your fireplace flues.

Add more insulation to your attic and consider sealing the edges of your attic to keep cold air from seeping into your home.

Make sure your dishwasher is full to make the most of the energy and water. Skip the dry cycle and open the dishwasher door so the dishes can air dry. Don't use your garbage disposal, start a composting bin for vegetable and fruit scraps.

Set your water heater at about 120 degrees and wrap it with insulation. Consider getting a rain barrel, which not only provides a great resource for free water but can also help protect our waterways. According to Charlotte-Mecklenburg Utilities, a one-inch rainfall over a 1,000-square-foot roof provides more than 620 gallons of water. You can buy one from the county; prices range from $95 for a 60-gallon barrel and $110 for an 80-gallon barrel. On its site, charmeck.org/ Departments/ Utilities/ , check out the utility department's Water Star program, a cash incentive program for saving water.

Wash your clothes in cold water when possible. Use the suggested amount of detergent by using the cap provided, instead of just pouring in what you think you might need.

Keep your equipment up to date and well maintained. Many companies will offer a low-cost annual fee for two visits and give discounts on repairs. Not only is a dripping faucet annoying, but that is money going down the drain. According to consumers energy.com , a single dripping hot water faucet can waste 212 gallons of water a month. That will affect not only your water bill but also your energy bill.

Duke Power offers several opportunities to save money. On its Web site, duke- energy. com, there's a dashboard for your house that compares the energy use in your house from the prior year to another similar home. Duke also offers home energy audits.

Where's housing headed? Follow rents

2010-02-17T17:04:00.001-05:00

It may not be the most widespread measure of housing prices, but if you want to follow a powerful driver, look at rents. Specifically, it's the rents Americans pay on condos, apartments or houses that are about the same size, and share the same neighborhood as your ranch or colonial, that in the end determine what your house is worth.

In recent reports, Deutsche Bank demonstrates how steady or even falling rents have pulled down housing prices, to the point where in many markets it costs about the same amount to own as to lease. That's a golden mean that America hasn't seen in almost a decade. The DB research also offers convincing evidence that the wrenching adjustment in housing prices is finished for much of the nation, with a bit more pain to come in selected areas.

In normal times, people won't pay much less to lease a house than to own it. After all, if you're paying rent instead of a mortgage and taxes, you still get to enjoy the same rec room, chef's kitchen, and casita for visiting grandparents. So the surest sign of frenzy appears when owning becomes far more expensive than renting. That's precisely what happened during the last bubble. And the surest sign that prices have fully adjusted arrives when the ratio of what people pay in rent versus what owners spend on the same property returns to its historic average. That brings us to the Deutsche Bank studies. Its REIT research team first established a benchmark for a "normal" ratio of rents to ownership costs -- what it calls ATMP, or after-tax mortgage payment -- for 53 U.S. cities.

On average, DB found that families across America were spending about 87% as much to rent as to own in 1999. Hence, they were traditionally willing to pay a premium as homeowners, though not a big one. Given that analysis, it's likely that prices will fall another 5% or so nationwide. The drop could even be slightly greater. One reason: Rents, the force that govern housing prices, are still falling.

Source: Forbes, Shawn Tully, (2/12/10)

Fourth Quarter Existing-Home Sales Surge in Most States, Including N.C.

2010-02-17T16:54:00.001-05:00

Strong gains in existing-home sales were the predominant pattern in most states during the fourth quarter, with many more metro areas seeing prices rise from a year earlier, according to the latest survey by the National Association of REALTORS®.

Total state existing-home sales, including single-family and condo, jumped 13.9 percent to a seasonally adjusted annual rate of 6.03 million in the fourth quarter from 5.29 million in the third quarter, and are 27.2 percent above the fourth quarter of 2008.

N.C. was no exception. Existing home sales for the state increased 8.4 percent in the fourth quarter and increased a staggering 31.4 percent over last year's figures.

Lawrence Yun, NAR chief economist, said the first-time homebuyer tax credit was the dominant factor. "The surge in home sales was driven by buyers responding strongly to the tax credit combined with record low mortgage interest rates," he said. "With inventory levels trending down over the past 18 months, we expect broadly balanced housing market conditions in much of the country by late spring with more areas showing higher prices."

For more information, follow the link below.
http://www.realtor.org/press_room/news_releases/2010/02/metro_state

Replace Old Windows with Energy-Efficient Models

2010-02-09T09:21:00.001-05:00

If your windows are more than 15 years old, you may be putting up with draftiness, windows that stick in their frames, and skyrocketing energy bills. Energy-efficient windows would be a great improvement, but replacement can be very expensive. In a 2007 survey conducted by Consumer Reports, half of respondents spent $8,000 or more to replace all the windows in their homes, and 16% shelled out $15,000+.

Windows recoup much of their cost

The range for energy-efficient window pricing is wide, but Energy Star-qualified windows start around $120 for a 36” x 72” single-hung window and can go up 10 times that. With labor, you’re looking at about $270 to $800+ per window. Typically, windows at the low end of the price spectrum are less energy efficient.

But that doesn’t mean the numbers can’t make sense for you. For starters, window replacement is one of the best home remodeling projects in terms of investment return: For vinyl windows, you can recoup about 75% of the project cost in added home value, according to Remodeling Magazine’s annual Cost vs. Value Report.

Based on the projects outlined in Cost vs. Value, that’s a value add of about $8,200 to $10,600. Plus, if you choose windows that qualify for the new federal tax credit (U-factor and solar heat gain coefficient ratings must be 0.3 or less), you can effectively lop $1,500 off the purchase price.

You’re also likely to see modest savings on your energy bill. In general, you’ll save $126 to $465 a year if single-pane windows in a 2,000-square-foot house are replaced with tax-credit-eligible windows, according to the Efficient Windows Collaborative, a coalition of government agencies, research organizations, and manufacturers that promotes efficient window technology.

Keep in mind, though, that the savings can vary widely by climate, local energy costs, and the energy efficiency of both the windows purchased and the windows being replaced. Finally, you may qualify for low-interest loans or other incentives offered by your local utility that can sweeten the deal.

Sample costs, incentives

Here’s a hypothetical situation to help frame your purchase decision:

Location: Des Moines, Iowa

Old windows: Double-pane, non-Energy Star windows

New windows: Energy Star-qualified, tax credit-qualified vinyl windows

Purchase price plus installation: $10,500

Subtract tax credit: -$1,500

Subtract local utility rebate for installing Energy Star replacement windows (12 windows, $25 each): -$300

Net price: $8,700

The Des Moines homeowner could recoup about 70% of the project cost at resale, according to estimates in Cost vs. Value. From a net price of $8,700, the owner has “lost” only $1,350.

And his annual energy savings will be $91. Had the original windows been single-paned non-Energy Star, his annual savings would be $385. Double-paned windows are more common.

Evaluate price vs. energy efficiency

The range for energy-efficient window pricing is wide, but you can expect to pay about $500-$1,000, including installation per window. The most efficient windows on the market are usually the most expensive, but it’s not necessary to buy the highest-end products to realize utility bill savings or improve comfort and aesthetics. So how do you choose the most energy-efficient models for the price?

Thanks to Energy Star, you really don’t have to, according to Nils Petermann, project manager for the Efficient Windows Collaborative. Energy Star labels will tell you whether a window performs well in your climate based on ratings from the National Fenestration Rating Council.

However, if you’re looking for windows that qualify for the $1,500 federal tax credit, make sure the U-factor and SHGC are both less than or equal to 0.3 regardless of climate zone. Not all Energy Star windows qualify.

Know the language of windows

It’s also helpful to familiarize yourself with terms that appear on many window labels:

Glazing is simply the glass used in the window. The number of layers of glazing (single, double, or triple) don’t necessarily equal greater efficiency; the presence or absence of the other items in this list affects a window’s total energy performance, says Petermann. Glazing coatings can substantially affect a window’s U-factor, or degree of insulation against the outdoors.

Low-E stands for low emissivity, the window’s ability to reflect rather than absorb heat when coated with a thin metallic substance. Low-E coatings add up to 10% to the price of a window.

If your windows are in relatively good shape but you’d like better insulation, you can buy and apply Low-E films to your windows. They’re effective, but not as much as those put between glazing layers during manufacture. Look for the NFRC rating on these films, Petermann says. Low-E films start at about 50 cents per square foot, but you may want to check into the cost of having them professionally installed for large or complicated applications.

Gas fills typically consist of argon or krypton gas sandwiched between glazing layers to improve insulation and slow heat transfer. They often won’t work at high altitudes because differences in air pressure cause them to leak out.

Spacers separate sheets of glass in a window to improve insulating quality; the design and material are important to prevent condensation and heat loss.

Frame materials include vinyl, wood, aluminum, fiberglass, and combinations of. They each have different strengths: Vinyl windows are good insulators and are easy to maintain, but contract and expand with temperature changes, affecting the window’s air leakage; wood offers a classic look but is similarly affected by moisture changes and needs regular maintenance; fiberglass is very stable and low-maintenance but can be expensive; and aluminum is lightweight, stable, and a good sound proofer but is a rapid conductor of heat, making it a drain on energy efficiency.

Karin Beuerlein has covered home improvement and green living topics extensively for HGTV.com, FineLiving.com, and FrontDoor.com. She has also written for dozens of national and regional publications in more than a decade of freelancing, including Better Homes & Gardens, The History Channel Magazine, Eating Well, and Chicago Tribune. She and her husband started married life by remodeling the house they were living in. They still have both the marriage and the house, no small feat.

The Basics: Extended Home Buyer Tax Credit 2009/2010

2010-02-08T16:21:00.000-05:00

Bringing the Dream of Homeownership Within Reach

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed new legislation that:

Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.

Here is more information about how the Extended Home Buyer Tax Credit can help prospective home buyers become part of the American dream. If you have specific questions or need additional information, please contact a tax professional or the Internal Revenue Service at 800-829-1040.

Recent news:
IRS Releases Revised Tax Forms, Instructions for Claiming Tax Credit (Jan. 25)
Economists' Podcast: Lawrence Yun Discusses Market Recovery, the Tax Credit, and Employment (Jan. 12)
Economists' Commentary: Existing-Home Sales and the Tax Credit (Dec. 22)

Who Qualifies for the Extended Credit?

First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.
Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.

To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

If you or your client purchased a home between January 1, 2009 and November 6, 2009, please see: 2009 First-Time Home Buyer Tax Credit.

Which Properties Are Eligible?

The Extended Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Is Available?

The maximum allowable credit for first-time home buyers is $8,000.

The maximum allowable credit for current homeowners is $6,500.

How is a Buyer's Credit Amount Determined?

Each home buyer’s tax credit is determined by two additional factors:

The price of the home.
The buyer's income.

Price

Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.

Buyer Income

Under the Extended Home Buyer Tax Credit, which is effective on November 7, 2009, single buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit.

These income limits have changed from the 2009 First-Time Home Buyer Tax Credit limits. If you or your client purchased a home between January 1, 2009 and November 6, 2009, please see 2009 First-Time Home Buyer Tax Credit.

If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?

Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $145,000 for singles and over $245,000 for couples are not eligible for the credit.

Can a Buyer Still Qualify If He/She Closes After April 30, 2010?

Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.

Will the Tax Credit Need to Be Repaid?

No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount credit will be recouped on the sale.

Housing in America: The Next Decade

2010-02-06T15:28:00.001-05:00

As the economy recovers, markets will stabilize but the old "normal" will not return, according to a new study by John McIlwain for The Urban Land Institute.
Here are ULI's predictions:

· Home prices are stabilizing in many parts of the country but overwhelming challenges remain; national housing prices will fall another 10 percent this year until they stabilize in the second half of the year or in early 2011. This assumes that job losses come to an end in the next few months and unemployment begins to decline this year.

· The biggest challenge to the housing markets today is the growing number of homes with mortgages that are underwater. By the end of this year some 40 percent of all homes with mortgages are predicted to be underwater.

· After the recession, demand for housing will increase. There are four demographic groups that will drive housing markets for the next decade:

· Older Baby Boomers will become seniors in unprecedented numbers. Many younger Baby Boomers may be unable to sell their current suburban homes to move to new jobs.

· Generation Y will be renting far longer than past generations.

· Immigrants and their children may want to move to the suburbs but may find them too expensive even after current drop in housing prices.

· Workforce housing will remain a challenge. The outer suburbs will have the least expensive housing but the cost in time and money of long commutes will eliminate the any savings.

The 10 Must-Haves in New Homes

2010-02-05T12:52:00.001-05:00

Americans want smaller houses and they are willing to strip some of yesterday's most popular rooms -- such as home theaters -- from them in order to accommodate changing lifestyles, consumer experts told audiences at the International Builders Show here this week.

"This is a traumatic time in this country and the future isn't something we're 100% sure about now either. What's left? The answer for most home buyers is authenticity," said Heather McCune, director of marketing for Bassenian Lagoni Architects in Park Ridge, Ill.

Buyers today want cost-effective architecture, plans that focus on spaces and not rooms and homes that are designed 'green' from the outset," she said. The key for home builders is "finding the balance between what buyers want and the price point."

For many buyers, their next house will be smaller than their current one, said Carol Lavender, president of the Lavender Design Group in San Antonio, Texas. Large kitchens that are open to the main family living area, old-fashioned bathrooms with clawfoot tubs and small spaces such as wine grottos are design features that will resonate today, she said."What we're hearing is 'harvest' as a home theme -- the feeling of Thanksgiving. It's all about family togetherness -- casual living, entertaining and flexible spaces," Lavender said.

Paul Cardis, CEO of AVID Ratings Co., which conducts an annual survey of home-buyer preferences, said there are 10 "must" features in new homes.

1. Large Kitchens, With an Island

"If you're going to spend design dollars, spend them where people want them -- spend them in the kitchen," McCune said. Granite countertops are a must for move-up buyers and buyers of custom homes, but for others "they are on the bubble," Cardis said.

2. Energy-Efficient Appliances, High-Efficiency Insulation and High Window Efficiency

Among the "green" features touted in homes, these are the ones buyers value most, he said. While large windows had been a major draw, energy concerns are giving customers pause on those, he said. The use of recycled or synthetic materials is only borderline desirable.

3. Home Office/Study

People would much rather have this space rather than, say, a formal dining room. "People are feeling like they can dine out again and so the dining room has become tradable," Cardis said. And the home theater may also be headed for the scrap heap, a casualty of the "shift from boom to correction," Cardis said.

4. Main-Floor Master Suite

This is a must feature for empty-nesters and certain other buyers, and appears to be getting more popular in general, he said. That could help explain why demand for upstairs laundries is declining after several years of popularity gains.

5. Outdoor Living Room

The popularity of outdoor spaces continues to grow, even in Canada, Cardis said. And the idea of an outdoor room is even more popular than an outdoor cooking area, meaning people are willing to spend more time outside.

6. Ceiling Fans

7. Master Suite Soaker Tubs

Whirlpools are still desirable for many home buyers, Cardis said, but "they clearly went down a notch," in the latest survey. Oversize showers with seating areas are also moving up in popularity.

8. Stone and Brick Exteriors

Stucco and vinyl don't make the cut.

9. Community Landscaping, With Walking Paths and Playgrounds

Forget about golf courses, swimming pools and clubhouses. Buyers in large planned developments prefer hiking among lush greenery.

10. Two-Car Garages

A given at all levels; three-car garages, in which the third bay is more often then not used for additional storage and not automobiles, is desirable in the move-up and custom categories, Cardis said.

Obama housing rescue threatened by foreclosures, unemployment

2010-02-02T16:32:00.000-05:00

President Barack Obama's efforts to bolster the U.S. housing market may be undone by record unemployment and repossessions by lenders, according to an article on Bloomberg.com. Foreclosures are expected to reach 3 million this year, surpassing the record of 2.82 million in 2009, according to Irvine, California-based RealtyTrac Inc. That would more than offset an estimated 448,000-unit rise in home sales, based on the average forecast of the National Association of Realtors, the Mortgage Bankers Association and Fannie Mae.

The housing industry remains a challenge for Obama as he enters his second year of office and government assistance programs near expiration. Data this week showed home sales tumbled after the expected end of an $8,000 tax credit for first-time buyers boosted transactions the prior month.

Employers have cut more than 7 million jobs in the last two years, the biggest employment loss since the Great Depression. The U.S. jobless rate is expected to average 10 percent in 2010, according to the median estimate of 59 economists surveyed by Bloomberg. That would be the highest yearly rate in government records dating to 1948. Unemployment was 9.3 percent in 2009, the most in 26 years.

One in four U.S. homeowners holds a mortgage with a balance higher than the property's value. The number of borrowers with so-called negative equity reached 10.7 million, or 23 percent, at the end of the third quarter, according to a Nov. 24 report by First American CoreLogic, a California-based real estate research firm. Government programs to help underwater borrowers exclude jumbo mortgages that aren't eligible to be purchased by Washington-based Fannie Mae and Freddie Mac of McLean, Virginia.

Source: Bloomberg.com, Kathleen M. Howley

Obama gets low grades for housing

2010-02-02T16:31:00.000-05:00

A national survey released by Trulia shows that many Americans feel that President Barack Obama has not lived up to the hope he created during his campaign and his first 30 days in office. In Trulia's latest American Dream survey conducted online by Harris Interactive from January 19-21, 2009, President Barack Obama scored considerably lower marks on the topic of restoring the American dream of home ownership compared to a survey conducted February 20-24, 2009, after his first 30 days in office.

The current survey found that 37 percent of Americans gave President Obama a grade of "D" or "F" on the decisions he's made towards restoring the American dream of home ownership compared to only 22 percent in the February 2009 survey. Additionally, 54 percent gave him a grade of "A" or "B" in February 2009 compared to only 37 percent in January 2010.

Despite these lower grades, and the troubles that have continued to plague the U.S. housing market, the survey found that the "American Dream" of homeownership continues to be alive and well with more than three out of four Americans considering owning a home as a part of achieving their personal American dream.

Democrats and Republicans agree on the areas President Obama needs to focus on in 2010 to stabilize the U.S. real estate market. Creating jobs and job security continues to be at the top of the list with 62 percent of adults referencing it as a key priority for the President.

With foreclosures reaching record levels in 2009 and expected to grow even more this year, it's not surprising that 45 percent of adults included this as an important area of focus. Rounding out the top three priorities for President Obama is bringing/keeping low interest rates at 39 percent. Only 27 percent of Americans surveyed believe extending the home buying tax credit through the end of 2010 should be a key initiative to help stabilize the housing market.

Pending home sales stabilize

2010-02-02T16:30:00.001-05:00

Pending home sales have leveled from a market swing driven by response to the home buyer tax credit, according to the NATIONAL ASSOCIATION OF REALTORS®. The Pending Home Sales Index, a forward-looking indicator based on contracts signed in December, increased 1 percent to 96.6 from 95.6 in November, and remains 10.9 percent above December 2008 when it was 87.1. In November, the monthly index had fallen by 16.4 percent from surging activity in preceding months.
Here's a breakdown by region for the PHSI:

* Northeast: rose 2.3 percent to 76.1 in December and is 14.9 percent higher than December 2008.
* Midwest: increased 5.2 percent to 86.9 and is 8.7 percent above a year ago.
* South: rose 2.2 percent to an index of 98.4, and are 5.5 percent higher than December 2008.
* West: fell 3.8 percent to 119.9 but is 18.6 percent above a year ago.

Falling home values: The worst may be over

2010-02-02T16:29:00.000-05:00

During the past several years, the nation's housing sector has been weighed down with a disturbing trend that had been absent since the Great Depression: falling home values. However, most of the damage has already been done. In the past six months home prices have shown signs of stabilizing.

The Case-Shiller 20-city index has risen 5.3 percent since April of this year. The worst may be over but it is likely that prices may drop further due to a mounting foreclosure problem. According to a recent Realty Trac report, there were almost 3 million foreclosure filings last year, an all-time record. Foreclosures are one of the primary reasons for falling home prices since a foreclosed homes sell at a discount to non-foreclosed homes, bringing down the mean and median price for all homes sold in a marketplace.

Source: David Lereah, RealEstateEconomyWatch.com, (1/25/10)

Fannie Mae announces 3.5 % seller assistance

2010-02-02T16:26:00.000-05:00

Fannie Mae announced that people purchasing a Fannie Mae-owned HomePath® property will receive up to 3.5 percent of the final sales price to be used toward closing cost assistance or their choice of appliances. The offer is available to any owner-occupant who closes on the purchase of a property listed on HomePath.com before May 1, 2010.

Properties eligible for this incentive are listed on HomePath.com and most listings include detailed property descriptions, photographs, community and school information and more. In addition, many Fannie Mae-owned properties are eligible for special HomePath Mortgage and HomePath Renovation Mortgage financing which offers homebuyers an opportunity to purchase with as little as 3 percent down.

Big Test Ahead for the Mortgage Market

2010-01-29T14:03:00.001-05:00

The cessation at the end of March of the government program to buy mortgage-backed securities will show whether the White House and Federal Reserve have effectively stimulated the lending market to the point that it is now on solid footing.

If the sector slumps again, home owners could face a new period of distress.

Keeping mortgage rates at record lows was a major component of the economic strategy during President Obama's first year in office. While it did not garner the kind of headlines that efforts to bail out banks did, the policy did help revitalize home buying in parts of the country and assisted millions of home owners who were able to refinance.

Source: Washington Post, David Cho, Neil Irwin, and Dina ElBoghdady (01/25/10)

New home sales continue to decline

2010-01-29T13:13:00.002-05:00

New home sales fell 7.6 percent in December, the U.S. Commerce Department reported Wednesday. This was the second straight month that new home sales declined. The Commerce Department also reported that new home sales in 2009 were down 22.9 percent compared with 2008, hitting a record low of 374,000 units. The Federal Reserve responded by leaving short-term lending rates at near zero and pledged to keep them low. "This report does not totally ruin the notion that housing is recovering, but it does underscore the fragility of that recovery. It's not good news for broader economic growth," said Dana Saporta, an economist at Stone & McCarthy Research in Princeton, New Jersey.

Source: Reuters News, Lucia Mutikani (01/27/2010)

Mixed messages for home price

2010-01-29T13:13:00.001-05:00

Data through November 2009, released today by Standard & Poor's for its S&P/Case-Shiller Home Price Indices show that the annual rates of decline of the 10-City and 20-City Composites continue to improve, in spite of price declines being measured across many markets during November. This marks approximately 10 months of improved readings in the annual statistics, beginning in early 2009, and is the third consecutive month these statistics have registered single digit declines, after 20 consecutive months of double digit declines.

Four of the markets-Charlotte, Las Vegas, Seattle and Tampa-posted new low index levels as measured by the past four years. In other words, any gains they might have seen in recent months have been erased and November is now considered their current trough value. On the flip side, there are still some markets that continue to improve month-over-month. Los Angeles, Phoenix, San Diego and San Francisco have seen prices increase for at least six consecutive months. Looking at the annual figures, four markets-Dallas, Denver, San Diego and San Francisco-have finally entered positive territory, something we really haven't seen in at least two years in most markets.

Charlotte, Las Vegas, Seattle and Tampa all reached new low levels in November. For Las Vegas, in particular, prices have declined for 39 consecutive months, with a peak-to-trough reading of -55.6%. It is now just 4% above its January 2000 level. This compares to its peak in August 2006, when the average home price was 135% above that same level.

Freddie Mac CEO: housing is near bottom

2010-01-29T13:10:00.000-05:00

The inventory of foreclosed houses still hampers the recovery of the housing sector, but overall, the U.S. housing market appears to be at or near bottom, Freddie Mac CEO Charles Haldeman told the Detroit Economic Club on Tuesday. He predicted that the 30-year fixed mortgage rate would remain between 5 percent and 6 percent through 2010. "The big downside risk to all this is a large wave of homes now in foreclosure potentially hitting the market at prices that are destructive," Haldeman said.

Source: Reuters News, Soyoung Kim (01/26/2010)

Housing supplies steadily declining

2010-01-29T13:09:00.003-05:00

New data from Altos Research shows that housing supplies have been steadily declining for the last 16 months. The company says there are 20 percent fewer homes for sale now than there were in 2008. Some fear this decline is because banks have been holding back their repossessed properties, but Altos doesn't expect this so-called shadow inventory to result in a real estate day of reckoning in 2010 as some market observers have warned.

Scott Sambucci, VP of data analytics at Altos Research, says the industry won't see any effects from the supply of homes lurking in the darkness until inventory levels pick up. And he doesn't foresee that happening anytime soon, primarily because banks have no immediate motivation to offload these assets from their balance sheets, and are keenly aware that a sudden jump in the number of homes on the market could be detrimental to already-fragile property values. With a smaller selection of inventory, buyers will pay a higher price-the rudimentary concept of supply and demand. Sambucci says he's already seen definite evidence of a price floor in 2009. Home price statistics started out 2010 on a good foot, according to Altos' data, with seven-day moving averages within the company's index bouncing off their lows and starting to tick up. In addition, the number of homes with price reductions and the magnitude of these discounts are diminishing, although Sambucci says that could indicate buyers' willingness to pay more or it could just mean sellers are becoming more realistic about what they can get. Either way, price reduction stats, while still elevated, are moving in the right direction, he says.

Altos' researchers expect to see some seasonal bounce back in prices and short-term strength in the coming months as a result of government stimulus, such as the homebuyer tax credit and the last of the Federal Reserve's purchases of mortgage securities. But Sambucci says that momentum will likely fall off toward the latter half of 2010, and any price gains seen this year will be lost as the government programs wind down. Altos Research expects home prices to start 2011 at the same level they are now in early 2010. Sambucci explained that if inventory continues to decline, by next year price points should become more attractive and activity can still be sustained.

Source: DSNews.com, Carrie Bay (01/27/2010)

Fed sees signs of recovery

2010-01-29T13:09:00.001-05:00

The Federal Reserve offered its most upbeat economic outlook in nearly a year at the conclusion of its regular two-day policy meeting recently. After emerging from the closed-door assembly, the Fed committee issued a statement that touted improvements in the labor market and business spending, but cautioned, recovery is likely to be moderate for a time." Taken directly, it may not sound like a rave review, but when you compare it to what Fed officials have been saying since last April-Economic activity is likely to remain weak for a time-it's certainly an improvement.

Even with the rosier outlook, the Federal Reserve committee voted to keep the target range for its benchmark federal funds rate at 0 to 0.25 percent, and noted that "economic conditions...are likely to warrant exceptionally low levels of the federal funds rate for an extended period." The decision to maintain the near-zero rate, though, was not unanimous - the first dissenting vote among Fed policymakers since January 2009, according to a CNN report. Thomas M. Hoenig, Kansas City Fed president, said economic conditions had improved enough to make exceptionally low rates "no longer warranted," according to the central bank's statement. Fed officials are holding to their plans of pulling back from the secondary market in the coming months. The committee confirmed that its program to purchase mortgage-backed securities (MBS) and debt from the GSEs will come to a close on March 31, as previously signaled. By that time, the Fed says it will have bought $1.25 trillion of MBS and about $175 billion of agency debt. The Federal Reserve has already begun to slow the pace of these purchases to help facilitate a smooth transition when the agency makes its exit.

Source: DSNews.com, Carrie Bay (01/27/2010)

Allen Craven received the Boys & Girls Club of America's National Service Medallion.

2010-01-07T14:47:00.000-05:00

By Meghan Cooke - macooke@newsofcabarrus.com

Allen Craven of Concord recently received the Boys & Girls Club of America's National Service Medallion. Photo courtesy of the Boys & Girls Club of Cabarrus County.

Allen Craven remembers playing basketball and football, singing in the choir and going to summer camp at the Boys & Girls Club of Cabarrus County.

He remembers when former President Jimmy Carter came to the Club's annual pancake day during his campaign, and he remembers shooting a BB gun at a turkey shoot. But his best memories involve being around the kids.

After more than 50 years of memories at the Club, Craven recently received the Boys & Girls Clubs of America's National Service Medallion, a national award that recognizes board members and volunteers for their service to the Boys & Girls Club through leadership, development of programs or projects or fundraising efforts.

Craven, a 60-year-old Concord native and owner broker of Weichert Realtors - Craven & Co., has held many roles at the Club. He's been a member of the board of directors since 1991, has held several positions, including president and vice president, and has served on several committees in addition to volunteering as a basketball coach.

Whether it's behind the scenes or on the sidelines of a basketball court, Craven has contributed countless hours of time and energy in devotion to the Club.

"He will take whatever role is necessary," said Mike Blackwelder, development director of the Boys & Girls Club of Cabarrus County. "On any occasion, he's more than happy to stand up."

He was chairman of the committee responsible for raising $6 million for the construction of the Club's facility on Spring Street Northwest in Concord.

An avid golfer, Craven has also organized the Uwharrie Golf Classic, a golf tournament at Old North State Club in New London, for the past seven years. The tournament raises about $30,000 for the Club every year.

The Boys & Girls Club teaches children important life lessons, especially teamwork, Craven said as he recalled coaching basketball.

"You may be a super athlete or you may not be able to dribble a basketball, but everyone plays," he said. "It's about making everyone better through sportsmanship and playing fair."

For Craven, involvement in the Club is a family tradition. His father, Dr. Fred Craven, was one of the founding directors of the Club, and now his son, Ford, is also an active volunteer.

At the groundbreaking ceremony, both Craven and his father were on hand, their feet steadied on top of shovels plunged into what would become the Club's new facility.

He said he's received only one other recognition that means more to him than his recent award: a "Man and Boy" award from the Club that he shared with his father in the 1980s.

4 out of 10 recent buyers used FHA loans

2009-12-23T14:57:00.001-05:00

According to the most recent REALTORS® Confidence Index, 39% of recent buyers purchased a home with a Federal Housing Administration-insured loan. REALTORS® who took part in the November survey also reported that the number of first-time homebuyers continued to climb to 51%. The RCI results also indicated that distressed sales increased to 33% of all home sales last month, and that both investors and first-time home buyers are competing for these properties. The preponderance of distressed properties on the market has also influenced buyers' perceptions of other homes for sale. Realtors report that many buyers have pricing expectations that treat every property as if it were in foreclosure.

In addition, those surveyed expressed ongoing concerns with the impact of the Home Valuation Code of Conduct on recent appraisals. According to some survey respondents, inexperienced or out-of-area appraisers continue to rely heavily on sales prices of distressed properties, even when other comps are available.

Source: NAR

Exterior remodeling: best bang for your buck

2009-12-23T14:55:00.000-05:00

Despite a slow market and a slight decrease in the resale value of most remodeling projects, Realtors report that the smartest home improvement investments may also be some of the least expensive. Results from the 2009 Remodeling Cost vs. Value Report show that small-scale exterior projects are the most profitable at resale, according to estimates by REALTORS® who completed a recent survey.
Here are the highlights:
· On a national level, eight out of the top 10 projects in terms of costs recouped were exterior replacement projects that cost less than $14,000.
· Certain types of door and siding replacements, as well as wood deck additions all returned more than 80% of project costs upon resale. A steel entry door replacement--a new addition to this year's list--recouped 128.9% of costs, followed by upscale fiber-cement sliding replacements at 83.6%. Wood deck additions recouped 80.6% of costs.
· On a national level, the project with the biggest improvement from 2008 was the attic bedroom addition, recouping 83.1% of remodeling costs compared to 73.8% in 2008. The only other interior project that landed in the top 10 was a minor kitchen remodel with 78.3% costs recouped.
· Other exterior projects in the top 10 include midrange vinyl and upscale foam-backed vinyl sliding replacements, which returned more than 79% of costs. In addition, several types of window replacements - midrange wood, midrange vinyl, and upscale vinyl-all returned more than 76% of costs upon sale.
Similar to last year's report, the least profitable remodeling projects in terms of resale value were home office remodels and sunroom additions, returning only 48.1% and 50.7% of project costs.

Source: NAR

Foreclosure evictions suspended through the holidays

2009-12-23T14:54:00.000-05:00

In an effort to help families facing a foreclosure in the midst of the holiday season, both Freddie Mac and Fannie Mae made announcements recently and suspended foreclosure evictions from December 19, 2009 through January 3, 2010. In Freddie Mac's announcement, the company said it will suspend all evictions involving foreclosed, occupied single family and two to four unit properties that had Freddie Mac-owned mortgages. Fannie Mae had no inclusions and said all owner-occupants and tenants living in foreclosed properties the company holds will not be subject to evictions during this time frame, and Fannie Mae said it will also support the efforts of the servicers it works with that are taking similar actions.

Zenta to expand in Charlotte adding 1,000 jobs

2009-12-23T14:30:00.001-05:00

Governor Beverly Perdue announced the creation of 1,000 new jobs in the Charlotte area over the next five years by Zenta, a knowledge process outsourcing and business process outsourcing company.

The company, which employs a staff of more than 4,000 worldwide, has offices in New York, Los Angeles, Philadelphia, London, Mumbai and Chennai, India.

Zenta offers a full range of back-office, voice and onsite support solutions for credit card services, consumer lending servicing, mortgage services and real estate analytics.

Charlotte home prices rise for 1st time in two years

2009-12-10T16:15:00.000-05:00

By Stella M. Hopkins
shopkins@charlotteobserver.com
Posted: Thursday, Dec. 10, 2009

Charlotte-area home prices in November inched up for the first time in two years and home sales jumped again.

The average sales price last month of $195,244 marks a gain of slightly more than 1 percent from November 2008, according to results released this morning by the Charlotte Regional Realtor Association.

That was the first yearly price gain since November 2007 for transactions through the association's Carolina Multiple Listing Services. The past year has seen several months of double-digit price declines.

For the year, the average price is a little ahead of 2004 levels, meaning that people who have been in their homes for several years are probably still sitting on gains.

MLS sales in November rose a hefty 31 percent compared with a year ago as people rushed to take advantage of the first time homebuyers tax credit that had been set to expire last month. Congress, under heavy pressure from the housing industry, extended and expanded the credit. The November gain is even bigger than October's year-to-year jump of almost 20 percent, the first increase in more than two years.

MLS deals account for nearly all transactions in the Charlotte area.

The big gains come on comparison to an extremely weak market last fall, when the nation's financial system cratered. In Charlotte, that brought the loss of Wachovia's headquarters and mounting worries about job losses. Home sales plummeted in October 2008 and continued to sink through the winter.

Despite the jump, the 2,000 houses, townhouses and condos sold last month in the area represents a sales level below that of 2003.

Drop in unemployment could have little impact on default numbers

2009-12-09T09:12:00.000-05:00

The unemployment rate dropped in November, according to the U.S. Labor Department, as companies shed the fewest number of jobs since the recession kicked in two years ago. Government statistics show that last month, the jobless rate edged down to 10.0 percent, falling from the 26-year-high 10.2 percent hit in October.

The growing consensus within the mortgage industry is that unemployment is now the primary driver pushing delinquency numbers higher, so the upbeat November labor report is likely a hopeful sign that the pace of loan deterioration could subside sooner rather than later.

But analysts at Amherst Securities Group say their research tells a different story. The firm is a holding company for financial firms working with institutional investors of mortgage-related assets, and a study from its head of residential debt, Laurie Goodman, says borrowers who have been hit hard by falling home prices and owe more than their home is worth are more likely to fall behind on their mortgage payments than homeowners who lose their job.

According to Goodman, borrowers who are underwater with combined loan-to-value (LTV) ratios greater than 120 percent pose a higher delinquency risk. This "combined" LTV includes first mortgages on the home, as well as secondary home equity lines of credit taken out before the bust by a large number of homeowners who thought property values could only go up. Some estimates put second lien debt at over a trillion dollars.

According to Goodman, the default trigger is critical because policy will be shaped around the answer: is the rise in delinquencies stemming from negative equity or unemployment? Goodman points to the plain and simple correlation of default and unemployment increases - mortgages defaults began to tick upward when home prices started plummeting, she says, long before the job market began to decline.

In a much more complex analysis, Goodman compared default rates with unemployment and negative equity in various loan categories. She found that unemployment only became a factor when the homeowner's outstanding mortgage was 20 percent more than the home's value, an LTV ratio of 120 percent or more. For those homeowners who had positive equity in their home but lost their job, they still found a way to keep their payments current.

The findings of Goodman's team could soon be put to the test - while home prices in some markets have begun to inch upward, most market analysts say there's still farther to go before prices hit bottom. The Amherst report demonstrates that improvement in the housing market may not be as tightly linked to unemployment as some might think, and others say the likely sequence of events for an overall upturn puts housing out in front. According to a contributed report on StockTradersDaily.com, until there is a housing recovery, there will not be an American economic recovery. The story points to the boom that ended in mid-2007 as an example, where one of every six jobs was created in the housing sector.

Source: DSNews.com

NC not as stressed as most

2009-12-09T09:11:00.001-05:00

AP Index nears national high-stress level

The Associated Press' Economic Stress Index remains at 10.1 nationwide in October, compared to 6.9 in October 2008. The index is calculated as a score from 1 to 100 based on foreclosure, bankruptcy, and unemployment. An area is considered stressed when the score exceeds 11. About 37 percent of the nation's 3,141 counties had scores higher than 11 in October.

The five states with the highest overall score in October all experienced severe housing downturns:
1. Nevada, 21.95 index score
2. Michigan, 17.36
3. California, 16.48
4. Florida, 15.4
5. Arizona, 14.37

The least-stressed states were those that have mostly escaped housing issues:
1. North Dakota, 3.89
2. South Dakota, 5.14
3. Nebraska, 5.51
4. Vermont, 6.43
5. Montana, 6.64

New FHA condo rules

2009-12-09T09:09:00.000-05:00

New rules from the Federal Housing Administration could make it easier to get FHA-backed home loans for condominiums. The rules, which went into effect yesterday, were written to address current market conditions and the glut of empty condominiums left following the real estate bust.

The biggest changes include reducing the number of units in a new condominium that must be owner-occupied, eliminating a rule that banned loans to condos with "right of first-refusal" language in association bylaws, increasing the number of units that can have FHA financing, and cutting the expensive requirement of having an attorney review condominium documents before a sale.

Some of the rule changes, however, are temporary through December 2010. Others actually tighten FHA guidelines. For example, as of today, condos are eligible only if no more than 15 percent of units are more than 30 days past due on association fees. Also, while other states are now allowed to independently approve FHA mortgages, Florida is still required to have projects submit applications to the U.S. Department of Housing and Urban Development.

Nine Consecutive Gains for Pending Home Sales

2009-12-03T15:12:00.000-05:00

Pending home sales have risen for nine months in a row, a first for the series of the index since its inception in 2001, according to the NATIONAL ASSOCIATION OF REALTORS®.

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in October, increased 3.7 percent to 114.1 from 110.0 in September, and is 31.8 percent above October 2008 when it was 86.6. The rise from a year ago is the biggest annual increase ever recorded for the index, which is at the highest level since March 2006 when it was 115.2.

Lawrence Yun, NAR chief economist, said home sales are experiencing a pendulum swing. “Keep in mind that housing had been underperforming over most of the past year. Based on the demographics of our growing population, existing-home sales should be in the range of 5.5 million to 6.0 million annually, but we were well below the 5-million mark before the home buyer tax credit stimulus,” he said. “This means the tax credit is helping unleash a pent-up demand from a large pool of financially qualified renters, much more than borrowing sales from the future.”

By Region

* Pending sales in the Northeast surged 19.9 percent to 100.2 in October and is 44.2 percent above a year ago.
* In the Midwest, the index rose 11.6 percent to 109.6 and is 36.6 percent higher than October 2008.
* Sales in the South increased 5.4 percent to an index of 115.4, which is 31.6 percent above a year ago.
* In the West, the index fell 11.2 percent to 127.7 but is 21.9 percent above October 2008.

Not Out of the Woods Yet
Yun cautioned that home sales could dip in the months ahead. “The expanded tax credit has only been available for the past three weeks, but the time between when buyers start looking at homes until they close on a sale can take anywhere from three to five months. Given the lag time, we could see a temporary decline in closed existing-home sales from December until early spring when we get another surge, but the weak job market remains a major concern and could slow the recovery process.

“Still, as inventories continue to decline and balance is gradually restored between buyers and sellers, we should reach self-sustaining housing conditions and firming home prices in most areas around the middle of 2010. That would mean broad wealth stabilization for the vast number of middle-class families,” Yun said.

Source: NAR

Guidelines Aim to Ease Short Sales

2009-12-03T15:11:00.000-05:00

By RUTH SIMON

The Obama administration laid out final guidelines on Monday that should make it easier for some financially troubled borrowers to sell their homes.

The guidelines are designed to encourage the use of short sales, transactions in which the borrower with lender approval sells the home for less than what is owed on the loan. The program also makes it easier for borrowers to voluntarily transfer ownership of properties through a "deed in lieu of foreclosure."

Short sales can result in higher prices than foreclosures and can be less damaging to local neighborhoods, in part because homes aren't left vacant and exposed to vandalism. But these transactions are often difficult to complete.

Under the plan, borrowers will receive $1,500 from the government if they sell their homes for less than the amount of their mortgages. Mortgage-servicing companies will also receive $1,000 for each completed short sale. The program is open to borrowers who may be eligible for the government's loan-modification program, but don't end up qualifying, or are delinquent on their modification, or request a short sale or deed-in-lieu transaction.

The short-sale program is the latest addition to the Obama administration's $75 billion foreclosure-prevention plan, which includes incentives for mortgage companies and investors to rework troubled loans. The government first said in May that it would include short sales in the program, but it has taken months to finalize the details.

Under the new guidelines, second-mortgage holders can receive up to $3,000 of the sales proceeds in exchange for releasing their liens. Investors who hold the first mortgages, meanwhile, can collect up to $1,000 from the government for allowing such payments.

Borrowers who complete a short sale under the program must be "fully released" from future liability for the debt, according to the guidelines

Option ARMs: Housing recovery killer?

2009-12-03T15:09:00.000-05:00

"It sounded good at the time."

These exotic mortgages allowed home buyers to come to closing with little cash and choose, monthly, how much to pay: interest and principal, interest only, or a minimum amount less than the interest due.

Of course, the last option is the one 93% of option-ARM buyers selected, according to a new report released this week by Standard & Poors.

But eventually, everyone has to pay the piper.

Nearly all of the 350,000 option-ARM borrowers owe more than when they first bought their homes thanks to the unpaid interest accumulating. And many loans written during the first big wave, which started in 2004, are getting ready for their five-year reset, when they become standard amortizing loans. Additionally, some newer loans will reset early if the accumulated interest has pushed the loan-to-value ratio above 110% to 125%.

That means borrowers are about to start paying very hefty prices for their homes. In one scenario outlined in the S&P report, the payment on a $400,000 mortgage jumps from $1,287 to $2,593.
25% default rate

But that doesn't just spell bad news for borrowers. Some industry pessimists say the looming default problem could have the power to derail the nascent housing market recovery. "The crux of the matter is that as soon as these mortgages recast, the history is that they will default," said Brian Grow, one of the S&P report's coauthors.

And the newer the loans, the worse they will perform, the report said. The last year that any option-ARMs were issued was 2007. In the first 20 months after issuance, this vintage of option-ARMs had an average default rate of just over 22%.

That includes all option-ARMs issued in 2007. But if you calculate default rates for only 2007 option-ARM borrowers who are now underwater, the default rate jumps to 25% after just 20 months, according to S&P.

So, while there may not be an awful lot of these loans out there, their high default rates will have an out-sized influence on housing markets, adding to already bloated foreclosure inventories and driving prices down further.
Bubble markets

And the markets where they'll produce the most foreclosures are still among the most vulnerable in the nation.

Option ARMs were most popular in bubble markets -- California, Nevada, Florida and Arizona -- where double digit home annual price increases put the cost of buying a home out of reach.

In fact, 60% of these loans went to residents of California and other Western states, places where prices have fallen the most, according to report coauthor Diane Westerback. "The geography is negative for these products," she said.

Many borrowers in these places could only afford a home if they chose the option ARM. Many counted on continued hot market conditions to add value to their homes. The extra equity could then be tapped to pay their bills.

We all know how that worked out.

Home prices in many of the markets where option ARMs are most concentrated have fallen 30%, 40% or more. When the loans recast, most borrowers will find themselves severely underwater.

"Because borrowers of [options ARMs] are in a much worse position," said Westerback. "You'll see defaults rising very rapidly."

And most option ARM borrowers will not be good candidates for refinancing or mortgage modifications because their loan-to-value ratios will be far too high. Under the administration's Making Home Affordable program, for example, mortgages with balances that exceed 125% of the home's value are not eligible for help.
Not so white lies

There is another little problem that many option-ARM borrowers seeking refinancing would face: "Upwards of 80% of were stated-income loans," said Westerback.

These are the so-called "liar loans" in which lenders did not verify that borrowers earned as much money as they said they did. Lenders may not be able to modify mortgages because many of the borrowers' income could not stand up to the scrutiny. Borrowers may also not want to go through underwriting again because they could be held legally liable for deliberate inaccuracies on their original applications.

Add to those conditions the still fragile economy and high unemployment rates, and you have a recipe for disaster. To top of page

Charlotte-area home sales take off

2009-11-11T15:52:00.001-05:00

By Stella M. Hopkins

Fueled in part by a hefty tax credit, Charlotte-area home sales jumped nearly 20 percent last month, the first gain in more than two years.

There were 2,210 houses, townhouses and condos sold last month through the Carolina Multiple Listing Services. That compares with 1,848 in October 2008, when the economy took a nosedive.

The hefty increase marks the first time since February 2007 that sales rose on an annual basis. That's the most robust signal yet of the industry's recovery but still leaves sales below the 2003 level.

The first time homebuyer's tax credit, just extended and expanded to existing homeowners, is likely to continue propelling sales.

As evidence of the Charlotte market's staying power, MLS pending sales were up one-third compared with a year ago, according to data recently released by the Charlotte Regional Realtor Association. That's the second month in a row of increases. Those sales represent signed contracts that haven't yet closed and are an important barometer.

Sales prices continued a downward trend, falling 9.5 percent from a year ago, to an average of $196,204. Foreclosures and other distressed sales are weighing on prices.

MLS transactions account for the bulk of area sales.

Fewer Underwater Mortgages

2009-11-10T15:20:00.001-05:00

Fewer people are underwater on their mortgage--further evidence that the real estate free-fall may be slowing. Just 21% of all single-family homeowners owe more on their mortgage balances than their homes are worth, according to a third quarter residential real estate report from Zillow.com. That is down from 23% at the end of the second quarter. That's good news because it should help reduce the number of homeowners losing their homes to foreclosure. Being underwater is one of the two factors that lead to foreclosure, the other being, of course, not having enough income to make the monthly payments. But there's a second, less-positive factor that contributed to the reduction in underwater borrowers: foreclosures. So many people have already lost their homes that the ranks of those underwater are slowly dwindling.

Source: Zillow.com, CNNMoney.com

Nat'l Assoc. of REALTORS to launch new UNIVERSAL MLS!

2009-11-10T15:16:00.001-05:00

The National Association of Realtors® has acquired technology to create a database of all properties in the United States so Realtors® can better assist consumers in a high-tech, fast-paced business world. The technology acquisition includes licensed data and secured data aggregation services from LPS Real Estate Group, a wholly owned subsidiary of Lender Processing Services Inc. NAR will use the assets to develop the Realtors® Property Resource™, a parcel-centric information database covering all of the more than 147 million property parcels in the country as a resource for NAR members. NAR is planning to launch RPR™ in the second quarter 2010.

NAR CEO Dale Stinton said, "These acquisitions will allow Realtor® interests to control the program and the content. Realtors® need to respond quickly to today's tech-savvy consumers, and the RPR provides a means for multiple listing services (MLS), commercial information exchanges (CIEs) and real estate brokerage business models to support the Realtor® community, rather than requiring Realtors® to purchase data aggregated by third parties." RPR(TM) is not a national MLS, and will carry no offers of cooperation and compensation, Stinton added. "It is a private, NAR members-only benefit. The assets acquired by NAR will be directed through a wholly owned subsidiary corporation, Realtors Property Resource, LLC," Stinton said.

Fannie Mae announces deed for lease program

2009-11-09T10:11:00.000-05:00

Fannie Mae is implementing the Deed for Lease Program under which qualifying homeowners facing foreclosure will be able to remain in their homes by signing a lease in connection with the voluntary transfer of the property deed back to the lender.

The new program is designed for borrowers who do not qualify for or have not been able to sustain other loan-workout solutions, such as a modification. Under Deed for Lease, borrowers transfer their property to the lender by completing a deed in lieu of foreclosure, and then lease back the house at a market rate.

To participate in the program, borrowers must live in the home as their primary residence and must be released from any subordinate liens on the property. Tenants of borrowers in this circumstance may also be eligible for leases under the program. Borrowers or tenants interested in a lease must be able to document that the new market rental rate is no more than 31% of their gross income.

Leases under the new program may be up to 12 months, with the possibility of term renewal or month-to-month extensions after that period. A Deed for Lease property that is subsequently sold includes an assignment of the lease to the buyer. For additional information about the Deed for Lease Program, including full details on program eligibility, please review the Guide Announcement by clicking here.

Tax Credit Extended and Expanded!

2009-11-09T10:05:00.000-05:00

Senate and House approve homebuyer tax credit extension

The Senate voted unanimously Wednesday night and the House of Representatives on Thursday to extend the $8,000 tax credit for homebuyers beyond its scheduled November 30, 2009, expiration date. The bill will be sent to the White House for his signature possibly as early as tomorrow. The credit would be available until April 30, 2010. Under the new legislation the credit will also now apply to repeat homebuyers.

Under a compromise reached late last week, the tax credit for veteran homeowners will apply only to those who have lived in their current residence for at least five years. The credit for these buyers will be capped at $6,500 while first time buyers will continue to receive $8,000.

Income levels will be extended from the current limits of $75,000 for a single purchaser and $150,000 for couples to $125,000 and $225,000 respectively. Above those limits there are diminishing credits available.

2009-11-07T12:29:00.001-05:00

Mobile Blog Test

-Ford Craven, REALTOR

Crescent Resources Files Bankruptcy Petitions

2009-06-11T14:27:00.001-04:00

By Bruce Henderson
bhenderson@charlotteobserver.com
Posted: Wednesday, Jun. 10, 2009

Charlotte-based Crescent Resources, one of the leading real estate developers in the Southeast, said today it has filed Chapter 11 bankruptcy petitions.

The company said it will continue to operate as it tries to reduce debt and improve its capital structure. Crescent has raised $110 million in financing from its existing lenders to continue operations as it reorganizes.

Chief executive Art Fields has retired and will work with the company as an advisor, Crescent said. Andrew Hede, Crescent's chief restructuring officer, will also serve as CEO.

The Observer reported Crescent's struggles with $1.4 billion in debt, and the possibility of bankruptcy, in May. The company expanded into 10 states in the Southeast and Southwest, including booming states that were later hard hit by the real-estate bubble.

“Despite the unprecedented challenges facing the real estate industry, we believe Crescent's underlying business model is solid, and our assets remain very attractive,” Hede said in a statement.

Crescent is a joint venture of Duke Energy and Morgan Stanley Real Estate Funds.

The Two Latest Signs Housing Is Recovering

2009-06-11T14:23:00.001-04:00

Here’s more evidence that the housing market is recovering.

Two major home builders, Toll Brothers Inc. and Hovnanian Enterprises Inc., say their losses were shrinking compared to last year because buyers are coming back to the market.

Other encouraging news came from IHS Global Insight, a research firm, which said home prices fell on average at an annual rate of 2.2 percent in the first quarter in 199 of 330 metropolitan areas. That compares with a 12.5 percent decline in the fourth quarter of 2008 in 312 metropolitan areas.

"While it's too early to see a bottom of this housing downturn," the report said, the latest data "may signal that the market is beginning to stabilize."

Source: The Wall Street Journal, James R. Hagerty and John Spence (06/04/2009)

Two Real Estate Agents Sue Over CSI Episode

2009-06-01T08:57:00.001-04:00

Melinda and Scott Tamkin, two associates with Keller Williams Realty in Beverly Hills, Calif., are suing a writer for the CBS show “CSI” because they allege they were portrayed unkindly in a show because of a real estate deal that didn’t work out right.

The "CSI: Crime Scene Investigation" episode featured a real estate practitioner named Melinda who dies. Her husband Scott, a mortgage broker, is suspected of killing her.

The Tamkins believe they were portrayed in the episode and sued writer and producer Sarah Goldfinger for defamation and invasion of privacy. They are seeking $6 million in damages, alleging that the show kept potential customers away.

The Tamkins represented the owners of a home that Goldfinger wanted to buy in 2005, according to the lawsuit. Goldfinger pulled out when the sale was in escrow.

Source: The Associated Press (05/23/2009)

Forecasters say recession nearing end

2009-06-01T08:53:00.000-04:00

More than 90 percent of economists think the recession is nearing its end, but they don't expect the economy to soar anytime soon. Nearly 75 percent of economists, surveyed by the National Association for Business Economics, say that the recession will end in the third quarter. Another 19 percent think the turnaround will come in the fourth quarter. The rest are betting on the first quarter of 2010.

Americans seem to believe that things are getting better too. The Conference Board's Consumer Confidence Index rose 14.1 points in May to 54.9, the second month in a row in which there has been an increase. Forecasters say that home sales will bottom out in the second quarter, an important stabilizing factor.

Source: The Associated Press, Jeannine Aversa (05/27/2009)

NAR: Existing-home sales jump

2009-06-01T08:48:00.001-04:00

Existing-home sales rose in April with strong buyer activity in lower price ranges, according to the National Association of Realtors. Existing-home sales increased 2.9 percent to a seasonally adjusted annual rate of 4.68 million units in April from a downwardly revised pace of 4.55 million units in March. Yet, home sales were 3.5 percent below the 4.85 million-unit level in April 2008, according to NAR.

REAL Trends Comment: Sales were up from March (which is a seasonal event) but down from last April (a cyclical event). As we reported in the REAL Trends April Housing Market Report, sales did not improve from March in our study. Further the seasonal adjustment in the NAR report was smaller (2.9%) than the normal monthly adjustment which is usually in the range of 10.5% to 12.4% - that is April sales are usually 10.5% to 12.4% higher than they are in March. We would enjoy more than anyone the news that the market is improving but the data just doesn't show it - yet.

An NAR practitioner survey in April showed first-time buyers declined to 40 percent of transactions, implying more repeat buyers are entering the traditional spring home-buying season. It also showed the number of buyers looking at homes has increased 14 percentage points from a year ago.

National median existing-home price: for all housing types, was $170,200 in April, which is 15.4 percent below 2008. Distressed properties, which accounted for 45 percent of all sales in April, continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes.

Total housing inventory: at the end of April, rose 8.8 percent to 3.97 million existing homes available for sale, which represents a 10.2-month supply at the current sales pace, compared with a 9.6-month supply in March. "The gain in inventory is largely seasonal from sellers entering the spring market," Yun says. "Even with the rise, inventory over the past few months has remained consistently lower in comparison with a year earlier."

Source: NAR

Local home prices rise, best among 20 markets

2009-05-26T16:41:00.000-04:00

Charlotte Oberver Staff Report

Posted: Tuesday, May. 26, 2009

Charlotte-area home prices showed a slight monthly gain in March, the first uptick since last summer, according to a widely watched index released today.

Sales prices rose .3 percent compared with February results from the S&P/Case-Shiller Home Price Index. That was the best monthly performance among the 20 urban markets measured by the index and another milestone that could signal the region's housing market has reached a bottom.

Charlotte-area sales prices remain down compared with March 2008, marking a full year of declining prices. But at 9.3 percent, the yearly decline also showed a tiny improvement over February's reading.

Comparisons to a year earlier are important because they compare similar periods and reduce the impact of seasonal effects, such as the typical rebound of home sales during the spring.

Still, monthly results can signal a trend. The Charlotte market started a string of monthly declines in July and peaked at a loss of 2.6 percent in December's index. The index is especially meaningful because it measures repeat sales of existing houses.

Nationwide, the index recorded a 19.1 percent decline for the first quarter, compared with the first three months of 2008. That was the sharpest drop in its 21-year history.

However, March was the second consecutive month since October 2007 in which the index for the 20 markets did not post a record annual decline.

With its 9.3 percent yearly decline, the Charlotte area remained in fifth place in March, behind smaller annual declines in Denver, Dallas, Boston and Cleveland. Those are the only five regions in which annual declines are under 10 percent.

Denver posted a .1 percent monthly increase and Dallas home prices remained flat in March.

Phoenix remains the hardest market in the index, with a decline of 36 percent compared with March 2008.

HUD rescinds $8000 tax credit down payment

2009-05-18T09:03:00.001-04:00

Earlier this week, HUD Secretary Shaun Donovan mentioned that the first-time homebuyer tax credit could be used as a down payment, but that may no longer be the case.

The mortgagee letter with the program details has since been removed from the HUD website; a call to the FHA confirmed this had occurred.

The employee I spoke with said the program is essentially pulled as of now, but nothing official has been released regarding the fate of the so-called tax credit advance.

So as it stands now, it appears as if the tax credit cannot be used for a down payment. It’s unclear why the FHA withdrew (or at least stalled) the program, though it could have something to do with perceived risk involved.

Allowing first-time homebuyers to purchase a property with nothing down is certainly high-risk, and the practice of using tax credits for down payments is fairly similar to the seller paid down payment assistance loans that nearly sunk the FHA.

Last summer, FHA Commissioner Brian D. Montgomery said the agency realized $4.6 billion in “unanticipated long-term losses,” largely due to an increased number of seller-funded loans in its portfolio.

The loans, which accounted for 14 percent of all FHA loans outstanding and 31 percent of all FHA foreclosures, are no longer available.

If they hadn’t been banned, the FHA would have needed appropriations of $2.5 billion to operate.

While I’m sure the program could help some borrowers in need, it could also lead to abuses, which may outweigh the positives.

Kannapolis - NC Research Facility Update

2009-05-18T08:50:00.002-04:00

Rowan-Cabarrus Community College recently signed a lease agreement with Castle & Cooke for a $26 million classroom and laboratory building on the NC Research Campus. This extension onto the campus is key to the college's efforts to grow its biotechnology programs in order to prepare our local workforce for the many new life sciences jobs being created there.

As RCCC makes strides to break ground on their new building, groundbreaking research forges ahead at the NCRC. A landmark $1 million donation from Charlotte businessman Herman Stone has launched On the Shoulders of Giants: Carolina's Campaign to Cure MS, an effort to raise $5.2 million to fund multiple sclerosis research at the Campus. Elsewhere in the City, Harmony Labs is investing $3.5 million to expand their facilities and create new jobs.

Beazer to pay $30.5 million in suit

2009-05-06T16:51:00.001-04:00

Shareholders had sued the homebuilder, saying they were misled about business practices.

Bloomberg News

Posted: Wednesday, May. 06, 2009

Beazer Homes USA Inc. agreed to pay $30.5 million to settle a class-action lawsuit over allegations it misled shareholders about problems with its mortgage-lending practices that led to a federal investigation.

Under terms of the settlement, the company denies any wrongdoing, Beazer said Tuesday in a statement. The settlement is subject to final approval by U.S. District Judge Clarence Cooper in Atlanta.

Shareholders sued in March 2007 and accused company directors of failing to prevent improper business practices including illegal mortgage lending. Beazer's illegal mortgage lending practices allowed the Atlanta-based company to sell more homes and conceal its declining business, shareholders said in the complaint. The lawsuit followed an Observer series that found the company arranged loans some buyers couldn't afford and violated federal lending laws.

Beazer, once a major Charlotte-area homebuilder, said insurance would cover the settlement payout. The settlement covers shareholders who purchased stock from Jan. 27, 2005, to May 12, 2008, according to court filings.

In September, Beazer settled with the U.S. Securities and Exchange Commission over claims it fraudulently misstated its earnings. The agreement didn't require the company, which denied wrongdoing, to pay any financial penalties.

Beazer rose 51 cents, or 16.7 percent, to $3.57 in New York Stock Exchange trading. The stock has climbed 126 percent this year after falling 79 percent in 2008.

Population Growing Fastest in Raleigh, North Carolina

2009-04-30T10:43:00.000-04:00

North Carolina is attracting new residents faster than any other area in the United States according to a recent Census Bureau study. The Raleigh-Cary, North Carolina metro's population rose 4.3 percent between July 1, 2007 and July 1, 2008, gaining almost 45,000 people. Austin-Round Rock, Texas was the second fastest-growing metro, adding 60,000 to the area for a 3.8 percent increase.

In terms of actual numbers, the Dallas-Fort Worth metro area gained the most, adding more than 146,000 persons to its population. Three other metro areas also became home to more than 100,000 from 2007 to 2008, including Houston (130,000), Phoenix (116,000) and Atlanta (115,000).

Metropolitan areas in the South in general are also among the fastest growing immigrant destinations. Phoenix and Atlanta both have well over a half million immigrants, and Las Vegas and Orlando each have more than one-quarter million foreign-born residents.

Source: Census Bureau

Many markets undervalued

2009-04-30T10:38:00.000-04:00

Good news for many markets, according to a new report by IHS Global Insight titled 'House Prices in America', for the nation, as a whole, the market is slightly undervalued and prices have fallen 9.9 percent from their peak in 2007.

For the fourth quarter, the rate of decline was the greatest in the current housing cycle, the study said. Statewide average home price declines for 2008 exceeded 20 percent in the four so-called 'sand' states Arizona, California, Florida and Nevada.

Open Houses Are Still Worth It, Practitioners Say

2009-04-30T10:33:00.000-04:00

Despite a changing market, many real estate professionals say open houses are still a good way to showcase a home.

Open houses work just as well as they did a few years ago when the market was very competitive, says Trudy Severa, an associate with Long & Foster in Reston, Va.

"Anything you can do helps," says Severa. "It's a numbers game, and there is no way to know the residual effects [that an open house can have]."

Some practitioners have had success joining forces with others to produce a group tour. For instance, seven different practitioners recently held a neighborhood open house in Washington, D.C., where participants could view eight listings ranging in price from $500,000 to more than $1 million.

An open house can be an opportunity to talk to potential buyers who are interested but who might be unsure about the uncertain market, says Mario Rubio, a practitioner with Rubio Real Estate in Annandale,Va. He suggests having a loan officer/mortgage banker on hand at the event to answer questions.

Source: The Washington Times, Cary Lee Dailey (04/10/2009)

Fed sees signs recession may be easing

2009-04-30T10:21:00.000-04:00

By JEANNINE AVERSA
AP Economics Writer

Posted: Wednesday, Apr. 29, 2009

WASHINGTON The Federal Reserve said Wednesday it see signs the recession is easing and that the economic outlook has "improved modestly" since last month.

Against that backdrop, Fed Chairman Ben Bernanke and his colleagues left a key interest rate at a record low of between zero and 0.25 percent, and decided against taking any new steps to shore up the economy.

Aggressive action already taken - including a $1.2 trillion effort last month - should gradually help bolster economic activity, the Fed said. It did, however, leave the door open to future action if needed.

Fed policymakers offered a less dour assessment of the economy than the one provided at its previous meeting in mid-March.

"The economy has continued to contract, though the pace of contraction appears to be somewhat slower," the Fed said. The worst of the recession - in terms of lost economic activity - could be past.

The economic outlook has "improved modestly" since the March meeting, partly reflecting some easing of strains in financial markets, the Fed said. Even so, "economic activity is likely to remain weak for a time," the Fed added.

And, while consumer spending has shown "signs of stabilizing," it is still being constrained by rising unemployment, falling home values and hard-to-get credit, the Fed said.

Meanwhile, weak sales and credit difficulties have forced businesses to cut spending and lay off workers, the Fed said.

To nurture economic activity, the Fed pledged anew to keep its key bank lending rate at a record low "for an extended period." Economists predict the Fed will keep the rate there well into next year.

Looking ahead, the Fed didn't rule out expanding existing programs or creating new ones to bolster the economy.

At its March meeting, the Fed launched a $1.2 trillion effort to lower interest rates and get Americans to boost spending, which would help spur economic activity.

Specifically, the Fed in March said it would start buying government debt - $300 billion over the next six months - and would buy an additional $850 billion worth of mortgage-backed securities and debt from mortgage giants Fannie Mae and Freddie Mac.

The Fed on Wednesday said it will continue to evaluate "the timing and overall amounts" of its government securities purchases in light of evolving economic and financial conditions.

Cramdown Bill Faces Senate Opposition

2009-04-30T10:16:00.001-04:00

The bill that would let judges modify the mortgages of home owners in bankruptcy, known as cramdown, is facing still more troubles as it moves to the U.S. Senate.

"I hope we can muster the courage and find the votes, although I know it will be hard," says Senate Majority Whip Richard J. Durbin, an Illinois Democrat. "It's hard to imagine that today the mortgage bankers would have clout in this chamber, but they do."

The bill Senators are being asked to vote on a measure that would require home owners be at least two months delinquent and have an outstanding balance of less than $729,750 to qualify. If a bankruptcy judge lowers the amount they owe, borrowers would have to split any ultimate profit with the lender if they sell while in bankruptcy proceedings.

Scott E. Talbott, senior vice president of government affairs for the Financial Services Roundtable, predicted that passage is unlikely. "The uphill battle that the bill has faced for years has continued. It will be very difficult to garner the votes," he says.

Source: Washington Post, Renae Merle (04/28/2009)

North Carolina has the least expensive closing costs!

2009-04-30T10:12:00.001-04:00

New York, Texas, Florida. For the second straight year, those are the most expensive states in which to get a mortgage. Nationwide, the average origination and title fees on a $200,000 mortgage this year totaled $3,118, according to Bankrate's annual survey of closing costs. The fees in the survey don't include taxes, insurance or prepaid items such as prorated interest or homeowner association dues.

Fees in New York City were highest, averaging $4,016 in Bankrate's survey. Houston came in second, with fees that averaged $3,975. After that came Buffalo, N.Y., with fees averaging $3,845, and then Miami, at $3,683. North Carolina had the least expensive closing costs in the survey, at an average of $2,650. The previous year, Indiana took the last spot.

The annual survey of online lenders is conducted by obtaining fee estimates for a $200,000 mortgage in each state's most populous city.

Source: Bankrate.com

Is FHA key to housing turnaround?

2009-04-15T17:37:00.000-04:00

Federal Housing Administration loans can be a very good deal for homebuyers, especially those who don't have a lot of cash or whose credit rating isn't stellar, experts say. FHA loans now account for 20 percent of new mortgages, up from 3 percent in 2006. What's more, the number of authorized FHA lenders has increased 500 percent in two years.

Other benefits of FHA loans include easy loan modifications for borrowers who fall behind, easy refinancing plans if rates decline, and low rates overall, which don't rise if the borrower has a low credit score. There are no income restrictions on FHA loans, so even borrowers with good incomes may find them attractive.

FHA loans still require a pre-settlement inspection of the home, but the process isn't nearly as arduous as it once was, says George Hanzimanolis, past president of the National Association of Mortgage Brokers.

Source: CNNMoney.com"

Gmail - REAL Trends E-mail UCertified green professionals on the rise

2009-04-15T17:36:00.000-04:00

More than 2,725 builders, remodelers and other homebuilding industry professionals have now achieved the Certified Green Professional designation. The National Association of Home Builders (NAHB) designation is awarded after the successful completion of 24 hours of classroom instruction on green building techniques and business practices, two years' industry experience, a commitment to continuing education and adherence to the CGP code of ethics."

Real estate prices seen leveling

2009-04-15T17:31:00.000-04:00

Nationally, housing prices have been in free fall for two years. According to the Altos 10-city Composite Price Index, there are some fragile signs of stability. Though the hardest hit markets, Las Vegas in particular, has not seen any slowing in the housing bust.

The Altos 10-City Composite Price Index increased by 1.1 percent during both March and the first quarter of 2009. Prices of properties listed for-sale increased in 18 of 26 major markets and were down in eight markets according to the Real-Time Housing Market Report, jointly published by Altos Research and market analysis consultancy Real IQ.

Asking prices fell at the fastest rate during March in Salt Lake City followed closely by Las Vegas - down 4.0% and 3.9% respectively. Listing prices of single-family homes rose at the fastest rate in San Francisco-up 3.8% in March. Prices in seven markets-New York, Boston, Houston, Los Angeles, San Diego, Miami and Charlotte-are now showing three months of sequential listing price increases."

$8000 Loan for an $8000 payback?

2009-04-15T17:19:00.000-04:00

States Contemplate Loans for Home Buyers
The $8,000 first-time home buyer mortgage tax credit, which is part of the Recovery and Reinvestment Act of 2009, is a great boon. But, it doesn’t help people who don’t have money for a down payment and closing costs.

Now some states are contemplating offering an $8,000 loan to home buyers before they close on the condition that they repay the loans as soon as they get their federal tax credits.

The idea has been adopted in Missouri, which advances the money to those who take out first mortgages offered through the state’s housing finance authority. The New York State Builders Association is lobbying the State of New York Mortgage Agency to adopt a similar strategy.

“A lot of states are trying to get through the technical aspects of this," says Gregory Brown, an assistant vice president for government affairs at the National Association of Home Builders. "I feel very confident they’ll find a way to make it work.”

Meanwhile, some home builders are taking matters into their own hands, offering programs that purchase the tax credit from borrowers prior to closing.

“This is a legitimate monetizing program that actually works,” says David Abrahamson, vice president of S.E. operations for American Home Key Mortgage Company, which makes the loans for many participating builders in the southeast.

Source: The New York Times, Bob Tedeschi and HousingWire.com, Paul Jackson (04/10/2009)

Origins of the Easter Bunny

2009-04-10T08:13:00.001-04:00

The Easter bunny has its origin in pre-Christian fertility lore. Then, it was called the "Easter hare" after the wilder, leaner, more rare group entirely in the genus Lepus. Both rabbits and hares were the most fertile animals known (bearing four to eight litters a year, with three to eight young in each litter) and served as symbols of new life during the spring season. The Easter hare was a sacred companion of the goddess of spring, Eostre.

The bunny was first used as a symbol of Easter in 16th century Germany and was introduced to American folklore by the German settlers who arrived in the Pennsylvania Dutch country during the 1700s. The arrival of the "Oschter Haws" was considered "childhood's greatest pleasure" next to a visit from Christ-Kindel on Christmas Eve. The children believed that if they were good, the "Oschter Haws" would lay a nest of colored eggs.

Thus the custom of making nests also spread to America. Children would build their nest in a secluded place in the home, the barn or the garden. Boys would use their caps and girls their bonnets to make the nests. The use of elaborate Easter baskets would come later as the tradition of the Easter bunny spread through out the country.

In honor of revival, renewal and resurrection, have a Happy Easter!

Pulte Homes to buy Centex

2009-04-09T18:29:00.001-04:00

$1.3 billion deal will create nation's largest homebuilder. Both companies are major players in the Charlotte area.

By J.W. Elphinstone
Associated Press

Posted: Thursday, Apr. 09, 2009

NEW YORK Pulte Homes Inc. is buying Centex Corp. for $1.3 billion in stock in a deal that will create the nation's largest homebuilder and could spark further consolidation in an industry that is suffering the worst real estate recession in a generation.

The transaction of the homebuilders – both major players in the Charlotte region – will combine Pulte's strength in active-adult and retirement housing with Centex's hefty market share of first-time homebuyers.

The acquisition also will give Pulte large tracts of land in Texas and the Carolinas, two of the most resilient real estate markets, and a presence in 29 states and Washington, D.C.

The new company, which also will include the Del Webb, DiVosta and Fox & Jacobs brand homes, will keep the Pulte name and headquarters in Bloomfield Hills, Mich. There will be an unspecified number of job cuts.

“It allows us to not only survive, but thrive in any economic climate,” said Richard Dugas Jr., Pulte's president and chief executive, who will retain those titles over the combined enterprise.

Pulte had the largest market share in the eight-county Charlotte region in the fourth quarter of 2008, and the second-largest for the whole year, with 9 percent of all single-family detached homes, residential real estate consultant Chuck Graham said. Centex ended last year with the fifth-largest market share in the region, 5 percent of single-family detached homes. That was up from about 4 percent for the rest of 2008, Graham said. In Mecklenburg, the builder had 203 permits in 2008, the most of any builder.

But by last year, Centex was already pulling back in the Charlotte area, combining its Charlotte and Raleigh offices in Raleigh and maintaining a minimal staff in Charlotte, Graham said. Pulte, on the other hand, was poised for growth in the region, particularly with its acquisition of Del Webb, meant to cater to the surging active-adult population, he said.

Wednesday's deal touched off investors speculation that other homebuilders with battered stock prices may be easy targets.

Faced with a 75 percent slide in new-home sales from the peak in mid-2005, homebuilders have slashed construction and prices but have been slow to join forces.

This deal “is a game-changer, pure and simple,” said Centex Chairman and Chief Executive Timothy Eller, who will become Pulte's vice chairman and will work as a consultant for two years following the acquisition's completion.

The combined company will have twice the revenue of its next largest rival, D.R. Horton Inc. Pulte and Centex pulled in a total of $11.6 billion in the last 12 months, compared with D.R. Horton's $5.8 billion.

The new industry behemoth also will be better poised to take advantage of the market's recovery, which executives said is just beginning.

Pulte lost almost $3.73 billion over the past two years, more than wiping out all of its profits for the prior three years. Centex lost $2.66 billion last year, erasing its earnings for the prior four years.

Shares in both companies have lost more than half their value from their 52-week highs last year.

Pulte is offering Centex shareholders 0.975 shares of its common stock for each share of Centex that they own. The transaction is valued at $10.50 per Centex share based on Pulte's Tuesday closing stock price of $10.77. That represents a 38 percent premium to Centex's closing price of $7.62 Tuesday.

Staff Writer Kirsten Valle contributed

EW YORK Pulte Homes Inc. is buying Centex Corp. for $1.3 billion in stock in a deal that w

NC Interactive Foreclosure Map

2009-04-09T18:25:00.000-04:00

http://www.charlotteobserver.com/104/story/642521.html

Slowing decline in home sales

2009-04-09T15:04:00.000-04:00

According to Radar Logic's January 2009 RPX Monthly Housing Market Report, sales in the 25 metropolitan statistical areas (MSAs) the report tracks declined 6 percent in the year ending January 2009, compared to 36 percent in the prior year.

The slowing annual decline of transactions was due to an increase in motivated sales, which Radar Logic defines as sales to third parties at foreclosure auctions and sales of foreclosed homes by financial institutions and foreclosure service firms. While this rapid growth in motivated sales reflects the increase in foreclosures over the last year, it also reflects significant demand for homes that are priced at 'motivated' discounts.

REAL Trends Comment: As readers can tell the housing market appears to show signs of improvement over the past few months. However, various sources of data show more of a seasonal improvement and not a cyclical improvement. Simply put even in tough markets we expect to see an improvement as we enter the spring months and a decline as we enter the fall of each year. That is a seasonal change not a cyclical change.

A cyclical improvement will show when sales, inventory and time on market changes are positive when comparing the same month of this year to the same in month in"