Fastest-Growing States in West, South

Nevada regained the title of fastest-growing state with its population increasing by 2.9 percent to 2.6 million through July 2007.

Nevada had held that title for 19 years in a row before being dethroned by Arizona last year. Arizona is the second-fastest-growing stat,e according to the current estimate, with a population increase of 2.8 percent to 6.3 million, according to the U.S. Census Bureau’s annual estimate of state population changes.

Florida saw the sharpest fall off in population growth. Florida grew 1.07 percent, only slightly faster than the U.S. growth rate of 0.96 percent and the slowest growth rate in the state since 1990, making it the 19th fastest-growing state.

The only two states in the country to lose population were Michigan and Rhode Island. Michigan lost 30,500 residents, a 0.3 percent decline.

The 10 fastest-growing states in order are:

1. Nevada
2. Arizona
3. Utah
4. Idaho
5. Georgia
6. North Carolina
7. Texas
8. Colorado
9. Wyoming
10. South Carolina

Source: Realtor magazin online

Foreclosure Rate Improves Over Prior Month

Foreclosures declined 10 percent in November compared with October, but were up nearly 68 percent compared with November 2006, according to RealtyTrac, a foreclosure sales and data company.

"This could indicate that foreclosure activity has topped out for the year, but the true test of whether this ceiling will hold will come at the beginning of next year" when a seasonal increase tends to occur and rates on more mortgages are to rise, RealtyTrac CEO James Saccacio said in a statement.

The national foreclosure rate in November was one filing for every 617 households.

Nevada continued to register the nation's top state foreclosure rate for the 11th straight month. A total of 6,694 foreclosure filings were reported in the state for the month, up 1 percent from the previous month and up 167 percent from November 2006.

Florida's November foreclosure rate of one foreclosure filing for every 282 households ranked second highest among the states.

The remaining states with top-10 foreclosure rates were in this order: Ohio, Colorado, California, Michigan, Georgia, Arizona, Indiana, and Illinois.

Source: RealtyTrac (12/19/07)

Subprime Woes Hit Buyers With Good Credit

The assumption that the subprime mortgage crisis is limited to buyers with poor credit is mistaken, according to an analysis prepared for The Wall Street Journal, which examined more than $2.5 million in subprime loans made since 2000.

In 2005, the peak year of the subprime boom, borrowers with credit scores high enough to qualify for a normal loan received 55 percent of all subprime mortgages, the study says.

The study by First American LoanPerformance, a San Francisco research firm, says the proportion rose even higher by the end of 2006, to 61 percent.

"Brokers and agents were telling" borrowers with high credit scores for the past several years "that it was OK" to get subprime loans, "and borrowers were wanting to take on more debt," says Mark Carrington, director, analytical sales and support at First American LoanPerformance.

Analysts conclude that credit-worthy borrowers holding subprime loans may be more likely than traditional subprime borrowers to afford to double whammy of rising rates and declining values.

The data could explain why nearly 80 percent of the borrowers with subprime loans have continued to keep their loan payments current, according to some analysts, and suggests that the crisis won't deepen as much as some fear.

Source: The Wall Street Journal, Rick Brooks and Ruth Simon (12/03/2007)

Most Metro Areas See Modest Price Gains

The vast majority of U.S. metropolitan areas showed rising or stable home prices in the third quarter, with most experiencing modest gains compared with a year earlier, says the latest quarterly survey by the NATIONAL ASSOCIATION OF REALTORS®.

In the third quarter, 93 out of 150 metropolitan statistical areas show increases in median existing single-family home prices from a year earlier, including six areas with double-digit annual gains and another 21 metros showing increases of 6 percent or more. Fifty-four areas had price declines, and three were unchanged. Regionally, prices rose in both the Northeast and Midwest, as did the national condo price.

Lawrence Yun, NAR chief economist, says the data underscores the fact that all real estate is local. “Some metro areas are hot while others are experiencing localized problems,” he said. “The report also shows that home prices in the vast midsection of America, from the Appalachians to the Rockies, are affordable and, perhaps, even undervalued.

Yun says the quarterly metro home price report is the most meaningful long-term series available on price performance because it looks at all of the available transactions in a given area.

Unlike other home price series that are based on county records and mortgage securities, which are collected well after the actual transaction date, NAR’s information comes directly from multiple listing services. The report includes actual market prices rather than just the percentage changes so people can compare housing values around the country, Yun says.

Even with most areas showing improvement, a disruption in higher-priced sales impacted the national median existing single-family home price, which was $220,800 in the third quarter, down 2 percent from the third quarter of 2006 when the median price was $225,300.

The median is a typical market price where half of the homes sold for more and half sold for less.

Gaylord: Know Your Market

NAR President Richard Gaylord says consumers need to understand what’s going on in their own area. “There is no such thing as a national housing market – it doesn’t perform like the equities markets,” he says. “What’s really important for consumers is to make informed decisions based on individual needs, desires, and timelines in a given area. Most people plan to stay in a home for 10 years, and for buyers with a long-term view, housing is an excellent investment.”

Typical sellers purchased their home six years ago, with the median price in the third quarter of 2001 at $159,100. Despite the dip in the national median price over the past year, the median increase in value for home sellers who bought six years ago is 38.8 percent. “Nearly every market is showing positive long-term gains, with a home equity accumulation of $61,700 over the past six years for a typical U.S. home owner,” Gaylord says.

Even in most of the places that are undergoing a large price decline, long-term increases are quite respectable, he says. For example, the Sarasota area of Florida is showing a median rise in home value of $112,000 over the typical holding period, and ranks well above norm for overall gains.”

Biggest Price Gains, Biggest Drops

In the third quarter, the largest single-family home price increase was in Bismarck, N.D., area, where the median price of $161,600 rose 15.1 percent from a year ago. Next was the Salt Lake City area, at $246,700, up 14.1 percent from the third quarter of 2006, followed by Yakima, Wash., where the third quarter median price increased 13.6 percent to $163,200.

Median third-quarter metro area single-family home prices ranged from a very affordable $81,600 in the Youngstown-Warren-Boardman area of Ohio and Pennsylvania, to more than 10 times that amount in the San Jose-Sunnyvale-Santa Clara area of California, where the median price was $852,500.

The second most expensive area was San Francisco-Oakland-Fremont, at $825,400, followed by the Anaheim-Santa Ana-Irvine area (Orange County, Calif.), at $700,700.

Other affordable markets include the Saginaw-Saginaw Township North area of Michigan, with a third-quarter median price of $84,900, and Decatur, Ill., at $85,900.

Condo Market Recap

In the condo sector, metro area condominium and cooperative prices – covering changes in 59 metro areas – show the national median existing condo price was $226,900 in the third quarter, up 2 percent from $222,500 in the third quarter of 2006. Forty-one metros showed annual increases in the median condo price, including six areas with double-digit gains; 18 areas had price declines.

The strongest condo price increases were in Bismarck, N.D., where the third quarter price of $133,300 rose 22.3 percent from a year earlier, followed by the Austin-Round Rock area of Texas, at $171,700, up 19.2 percent, and the Portland-Vancouver-Beaverton area of Oregon and Washington, where the median condo price of $210,200 rose 14.9 percent from the third quarter of 2006.

Metro area median existing-condo prices in the third quarter ranged from $114,000 in the Rochester, N.Y., area, to $663,700 in the San Francisco-Oakland-Fremont area. The second most expensive condo market reported was Los Angeles-Long Beach-Santa Ana, at $388,800, followed by the San Diego-Carlsbad-San Marcos area at $351,900.

Other affordable condo markets include Wichita, Kan., at $117,100 in the third quarter, and the Cincinnati-Middletown area of Ohio, Kentucky and Indiana at $117,500.

Sales Pace: State by State

Total state existing-home sales, including single-family and condo, were at a seasonally adjusted annual rate of 5.42 million units in the third quarter, down 13.7 percent from a 6.29 million-unit pace in the third quarter of 2006. “The housing market correction is clearly focused on transaction volume and not in home prices,” Yun notes.

According to Freddie Mac, the national average commitment rate on a 30-year conventional fixed-rate mortgage was 6.55 percent in the third quarter, up from 6.37 percent in the second quarter; the rate was 6.56 percent in the third quarter of 2006. Last week, Freddie Mac reported the 30-year fixed rate was down to 6.24 percent.

Only two states showed annual gains in existing-home sales from the third quarter of 2006, while complete data for two states were not available. In North Dakota, the level of third-quarter sales rose 2.9 percent from a year ago, while Vermont increased 0.8 percent. “The biggest decline in sales appears to be concentrated in areas that had significant levels of speculative investment, including Nevada, Florida and Arizona,” Yun said.

Regional PriceTrends

Northeast: The median existing single-family home price in the Northeast rose 3.2 percent to $286,300 in the third quarter from the same period 2006. Total existing-home sales in the region declined 7.3 percent to an annual pace of 973,000 units in the third quarter from the same period a year ago. The strongest price increase in the Northeast was in the Binghamton, N.Y., area, at $119,600, up 11.4 percent from the third quarter of last year, followed by Reading, Penn., with a median price of $162,900, up 7.0 percent, and Atlantic City, N.J., at $273,100, up 6.2 percent.

Midwest: The median existing single-family home price increased 0.5 percent to $170,800 in the third quarter from the same period in 2006. Overall, existing-home sales in the Midwest fell 10.8 percent to a 1.27 million-unit annual level in the third quarter compared with a year ago. After Bismarck, N.D., the strongest metro price increase in the Midwest was in the Green Bay, Wis., area, where the median price of $162,900 was 7.2 percent higher than a year ago. Next was Akron, Ohio, at $124,700, up 6.9 percent from the third quarter of 2006, and Gary-Hammond, Ind., at $144,300, up 6.7 percent.

South: The median existing single-family home price in the South was $180,800 in the third quarter, which is 3.6 percent below a year earlier. Total existing-home sales in the region were at an annual rate of 2.16 million units in the third quarter, down 14.3 percent from the third quarter of 2006. The strongest price increase in the South was in the Charlotte-Gastonia-Concord area of North Carolina and South Carolina, at $220,100, up 11.0 percent from a year ago, followed by the Beaumont-Port Arthur area of Texas, with a 10.2 percent gain to $129,100, and Corpus Christi, Texas, at $140,500, up 7.6 percent.

West: The median existing single-family home price in the West was $338,100 in the third quarter, down 3.8 percent from a year ago. The existing-home sales pace in the West of 1.01 million units fell 21.5 percent from the third quarter of 2006.After Salt Lake City and Yakima, the strongest metro price increase in the West was in the San Jose-Sunnyvale-Santa Clara area, which increased 9.4 percent from a year ago, followed by the San Francisco-Oakland-Freemont area, up 8.6 percent from the third quarter of 2006.

REALTOR® Magazine Online - November 21, 2007

Mortgage Rates Drop to Five-Month Lows

Mortgage rates have fallen to lows not seen in five months, according to the latest weekly report from Freddie Mac. The average interest for 30-year fixed loans was 6.26 percent, compared to 6.33 percent a week ago; and this was the lowest level since rates averaged 6.21 percent during the week of May 17.

"Continued market concerns about weaker economic growth and further declines in the housing market have kept mortgage rates low over the last few weeks," according to Frank Nothaft, chief economist at the mortgage finance giant.

Also, rates on 15-year fixed products fell to 5.91 percent from 5.99 percent last week; rates on five-year adjustable rate mortgages declined to 5.98 percent from 6.03 percent; and rates on one-year ARMs slipped to 5.57 percent from 5.66 percent a week ago.

Source: Chicago Sun-Times, Martin Crutsinger (11/02/07)

Top 5 Markets Where Home Prices are Rising

Home prices have risen in five major markets, while continuing to fall in the rest of the country, according to the S&P/Case-Shiller home price index for August, released Tuesday.

The largest price declines are in rust belt cities, although Tampa came out as the big loser as speculators abandoned properties.

“The fall in home prices is showing no real signs of a slowdown or turnaround," says Robert J. Shiller, co-creator of the index and chief economist for MacroMarkets LLC.

The Case-Shiller indexes track multiple sales of the same homes in an attempt to screen out price differences caused by shifts in the size and type of houses being sold. Some housing economists consider these indexes the best gauge of national and metro real-estate values.

Here are the changes in the August price level from a year earlier for single-family homes.

5 Cities Where Prices Rose

1.Seattle: 5.7
2.Charlotte: 5.6
3.Portland: 2.8
4.Atlanta: 0.8
5.Dallas: 0.515

Cities Where Prices Fell
1.Tampa: -10.1
2.Detroit: -9.3
3.San Diego: -8.3
4.Phoenix: -8.0
5.Miami: -7.8
6.Las Vegas: -7.6
7.Washington, D.C.: -7.2
8.Los Angeles: -5.7
9.San Francisco: -4.2
10.Cleveland: -4.1
11.Minneapolis: -4.0
12.New York: -3.8
13.Boston: -3.6
14.Chicago: -1.3
15.Denver: -0.4

Source: The Wall Street Journal, Rex Nutting, and S&P Case-Shiller Index (10/31/07)

6 Common Housing Problems that Spook Buyers

Potential home buyers with lots of homes to choose from can be easily spooked by disclosures and the results of property inspections — even when the shortcomings are typical for homes of a certain age.

In a jittery market such as this one, it’s critical to give buyers tools and knowledge so they can decide which problems are serious.

Judi Seip, an associate with Coldwell Banker in Southern California, tells her clients to accompany the inspector so they can put the problems in perspective. Anything a handyman or an electrician could fix in a few hours isn’t worth worrying about, she says.

Here are six common issues that trouble buyers and some factors to weigh:

1. Water damage. Evidence of water damage frightens buyers, but all water damage isn’t serious. Minor leaks generally cost no more than a few hundred to repair. Get an estimate.

2. Missing permits. Ask the home inspector if the work was done well and meets code requirements, even though a permit wasn’t issued.

3. Code violations. How expensive is the repair? Ungrounded electrical outlets are common in old houses and easily fixed.

4. Cracks in the garage floor. Ask the inspector whether these cracks suggest other related problems. Generally these don’t affect the structure of a home.

5. Termites. Termites and termite damage are very common in many parts of the country. It’s important to get rid of them and to get a clear sense of how bad the damage is.

6. Foundation cracks and other foundation issues. Older homes often have cracks in the foundation. Get an expert to inspect the problem and estimate — what if anything — needs to be done.

Source: The Mercury News, Margaret Steen (10/19/07)

A House in Egypt or Indiana? They Cost the Same

Coldwell Banker's 2007 Home Price Comparison Index survey looked at the average sales prices of single-family four-bedroom homes with approximately 2,200 square feet of space in 77 markets outside the U.S.

The HPCI is meant to serve as a guide for employees facing transfers who are interested in how much a typical home will cost, but other people are increasingly interested, as well.

"More and more Americans are living abroad," says Jim Gillespie, chief executive officer of Coldwell Banker. "The baby boomers in particular are now looking internationally to buy second homes and retirement homes."

HiFX, a firm based outside London that provides foreign exchange services, estimates that there are more than 500,000 relocations of Americans to foreign countries per year, with the biggest concentrations of Americans residing in Mexico (approximately 1 million), Canada (700,00), and Britain (200,000).

Here are HPCI’s top 10 most affordable international markets, the 2007 average sales prices and how the average sales prices compares to a U.S. city:

1. Bogotá, Columbia: $140,100; compares with Canton, Ohio, $146,333

2. Sharm El Sheikh, Egypt: $144,896; compares with Muncie, Ind., $150,000

3. Charlottetown, Prince Edward Island, Canada: $157,630; compares with Eau Claire, Wis., $158,6504. Granada, Nicaragua: $190,000; compares with Memphis, $191,936

5. Panama City, Panama: $201,333; compares with Erie, Pa., $205,475

6. St. John's, Newfoundland, Canada: $209,000; compares with Florence, Ky., $209,579

7. Saskatoon, Saskatchewan, Canada: $211,666; compares with Huntsville, Ala., $212,183

8. Manama-Muharraq, Bahrain: $230,500; compares with Lawrence, Kan., $232,300

9. Aruba: $236,250; compares with Louisville, Ky., $238,000

10. Suzhou, China: $241,275; compares with Port Charlotte, Fla., $239,100Source:


BusinessWeek Online, Maya Roney (10/12/07)

RealtyTrac.com Identifies Best Foreclosure Deals

RealtyTrac.com, which supplies monthly mortgage statistics, also calculates the average discount-to-value by market — that is, how much foreclosed homes actually sold for compared to their estimated market value in their areas.

This information can help a bargain hunter get the best foreclosure deal.

Nationwide, in the three months from June through August, 68,426 foreclosed homes sold in 2007 vs. 54,886 in 2006. The average sales price dropped from $271,000 to $239,000.

The discount-to-market ratio increased slightly from 76.42 percent to 77.68 percent. This is the actual foreclosure sales price compared to the perceived market value of the home. So 77.68 percent means, on average, you'd get just over a 22 percent savings or "discount" on a foreclosure purchase. That's down from just over 23 percent a year ago.

These are the states with largest discount, including price and its average percent of market value:

• Alabama: $133,834, 59.95 percent
• Pennsylvania: $110,936, 61.68 percent
• Indiana: $99,255, 63.5 percent
• Ohio: $90,300, 64.7 percent
• Missouri: $144,768, 67.25 percent

Here are the states with the smallest discounts:

• Hawaii: $657,211, 85.41 percent
• Washington: $288,397, 83.68 percent
• Virginia: $338,912, 83.48 percent
• Massachusetts: $290,835, 83.03 percent
• California: $437,813, 83 percent

Source: Dow Jones Business News, Jennifer Openshaw (10/16/07) /Realtor magazin

The Difference Between Advertising and Marketing

Real estate technology trends expert Matthew Ferrara of Matthew Ferrara & Co. underscores the difference between marketing and advertising properties.

If you place a picture and a list of a home's specifications in the newspaper or online, you are merely advertising, he explains. And that's not very effective, he says, citing a consumer survey by the NATIONAL ASSOCIATION OF REALTORS® that shows fewer than 5 percent of buyers thought newspapers were helpful in finding a home.

According to Ferrara, the biggest difference between advertising and marketing is that the former concentrates on a product, while the latter focuses on people and the opportunities available to them through the purchase of the product.

While home buyers may need a certain amount of bedrooms or a home feature such as a garage, Ferrara says most make a purchase based on the lifestyle associated with a particular property. But most real estate advertisements do not show people living in the home or enjoying the nearby amenities.

So how does this transfer to the Web? He says Web sites that allow buyers to search by their personal buying category, such as new buyers or retirees, are more useful than searches based on home price.

Ferrara believes homes targeting entry-level buyers should be marketed on YouTube or iTunes because many of today's buyers in this demographic generally are interested in videos and podcasts. Maintenance-free condominiums geared to empty nesters could be marketed on Web sites with guided video tours and allow prospective buyers to print high-quality brochures detailing the properties.

Source: Maryland REALTOR®, Matthew Ferrara (09/01/07)

The real estate business may be facing a softening in sales, but there are parts of the country where it makes sense to buy now. Forbes magazine examined current home sales patterns and sales projects in the country’s 40 largest real estate markets to identify these attractive markets.

Based on models that estimated 2008 housing inventory, sales rates, and turnover, the magazine compiled a list of markets that are experiencing price declines, but where buying looks attractive because there is likely to be an increase in sales in the near future.

Here are Forbes’ and Moody’s 10 most attractive markets, along with the median homes sales price and their price change from 2006.


1. Fort Worth, Texas: $156,500, 1.7 percent
2. Kansas City, Mo.: $157,700, -0.7 percent
3. Houston: $154,900, 1.4 percent
4. Cleveland: $128,700, -7.1 percent
5. Denver: $255,200, none
6. Long Island, N.Y.: $482,300, 1.7 percent
7. Washington, D.C.: $445,300, 0.3 percent
8. Orlando, Fla.: $265,100, -2.4 percent
9. Phoenix: $264,800, -2.7 percent
10. Las Vegas: $307,900, -3.6 percent


Source: Forbes, Matt Woolsey (10/08/07)/ Realtor magazin

Mortgage Rates Move Lower

Fixed mortgage rates declined over the last week, with the average conforming 30-year fixed mortgage rate falling to 6.42 percent.

According to Bankrate.com's weekly national survey of large lenders, the average 30-year fixed mortgage has an average of 0.36 discount and origination points.

The average 15-year fixed rate mortgage popular for refinancing fell by a similar amount to 6.10 percent. The average jumbo 30-year fixed rate pulled back to 7.28 percent. Adjustable mortgage rates were lower as well, with the average one-year ARM slipping to 6.13 percent, and the average 5/1 ARM sliding to 6.26 percent.“

Another drop in pending home sales added to mounting housing concerns and helped pull mortgage rates lower,” Bankrate.com said in its report. “Worries about the economic fallout from housing enticed investors into the safety and security of long-term government bonds.”

Fixed mortgage rates are closely related to yields on ten-year Treasury notes. The path of mortgage rates in the next week is very likely to hinge on the outcome of the employment report to be released Oct. 5.

If job growth does not appear as bad as initially thought, this could give the Federal Open Market Committee latitude to pause at the next meeting. But more troubling signs from the job market might compel the Fed to cut interest rates again. The Fed remains coy about plans for the Oct. 30-31 meeting.

Fixed mortgage rates remain the most attractive option for borrowers. Just three months ago, the average 30-year fixed mortgage rate was 6.74 percent, meaning that a $200,000 loan would have carried a monthly payment of $1,295.87. Now that the average conforming 30-year fixed rate is 6.42 percent, the same $200,000 loan carries a monthly payment of $1,253.63.

Bankrate.com's national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets.

Source: Bankrate.com

For Most Buyers, the Mortgage Market Is Healthy

The widespread notion that the entire mortgage market is in crisis is just plain wrong, say lenders in various parts of the country.

The majority of mortgage products have been unaffected by troubles in the subprime segment. Interest rates for 30-year, fixed-rated loans remain in the low 6 percent range for people with reasonably good, though not necessarily perfect, credit records, according Kenneth R. Harney, managing director of the National Real Estate Development Center and syndicated columnist.

While there is plenty of money to lend, Harney says underwriting standards are more strict than they were a year ago. Jumbo loans, for example, often require two appraisals – one by an appraiser selected by the lender and the other by one working for the investor.

Similarly, FICO credit-score standards generally are higher than a year ago, stated-income mortgages with no verifications are hard to find and lenders are especially wary of excessive "layering of risk" – combining low down payments with marginal credit scores and high debt-to-income ratios – in markets where prices are trending lower.

Source: The Washington Post Writers Group, Kenneth R. Harney (09/29/07)/Realtor magazin

Self-Employed Workers Struggle to Get a Mortgage

It is growing increasingly difficult for the self-employed to get a mortgage.

Some lenders that specialized in home loans to self-employed workers and small-business owners have gone out of business. And many lenders that still offer such loans have tightened their standards, making it harder for self-employed borrowers to qualify.

Here's what self-employed borrowers need in order to qualify for a mortgage in this new environment, according to Marc Savitt, president of the National Association of Mortgage Brokers.

• More documentation. Along with two years of tax returns, self-employed borrowers might be asked to provide a profit-and-loss statement, bank statements, and proof that they've been in business for at least two years. A letter from their accountant probably won’t be good enough.
  
• Fewer tax deductions. Savitt says self-employed workers who plan to buy a home in the next year or two might want to forgo some deductions. "Make sure you can show as much income as possible," he says.
  
• Larger down payments. An old-fashioned 20 percent down is very persuasive.
  Excellent credit. A credit score of 720 or higher will give self-employed borrowers some choices.
  
• Patience. Even for well-off business owners, qualifying for a mortgage is "not that smooth, easy no-brainer like it used to be," Savitt says. "If you want it to be quick, you're paying a higher price."

Source: USA Today, Sandra Block (10/02/07)/Realtor magazine online

FHA Reform passes House and Senate Banking Committee

In the month of September, both the House of Representatives and the Senate Banking Committee passed versions of an FHA reform package that NAR has been strongly supporting for several months. The House version, entitled “Expanding American Homeownership Act of 2007” passed with a strong majority of 348-72, and includes provisions that would eliminate the 3% down payment requirement, increase the loan limits, streamline condominium purchases, and eliminate the cap on Home Equity Conversion mortgages (HECMs). The House bill also includes provisions for a National Affordable Housing Trust fund, and provisions allowing risk based pricing on FHA insured loans. A similar, but not as far reaching, bill passed the Senate Banking committee but has yet to be considered by the full Senate, although it is expected to be brought to the floor in October. After it is passed, it will be sent to a conference committee where the two versions of the bill will be reconciled. NAR staff created a comparison document that outlines the differences between current law, the bill that passed the House, and the bill that passed the Senate banking committee.

Mortgage Applications Fall, Refi Activity Up

Mortgage applications fell 2.8 percent last week on a seasonally adjusted basis to 654.2, according to the Mortgage Bankers Association weekly mortgage applications survey.

On an unadjusted basis, the index decreased 3.3 percent compared with the previous week, but was up 15.4 percent compared with the same week a year ago.The refinance share of mortgage activity increased to 46.4 percent of total applications from 43.5 percent the previous week.

Mortgage rates rose for fixed-rate products and dropped slightly for ARMS:

• 30-year fixed-rate mortgages increased to 6.38 percent from 6.29 percent;
  
• 5-year fixed-rate mortgages increased to 6.06 from 5.99 percent;
  
• One-year ARMs decreased to 6.09 from 6.39 percent.

While these numbers look like more bad news, Doug Duncan, chief economist for the association, says they don’t accurately reflect the total housing story, and he offers these statistics to put the situation in perspective.

Duncan says the foreclosure problem is predominantly based in seven states. In Michigan, Ohio and Indiana homes are in foreclosure because of job losses. Since 2001, Michigan alone has lost 300,000 jobs.

The other four hard hit states are California, Florida, Arizona and Nevada where there has been significant overbuilding. About 25 percent of the foreclosures in these states are on properties held by investors.

In 43 states, foreclosures have fallen in 2007 from 2006. Only 9 percent of all mortgages are subprime and 75 percent of all subprime mortgages are performing. In all, 98 percent of all mortgages in the U.S. are performing and 35 percent of the homes in the country don’t have a mortgage at all.

Source: Mortgage Bankers Association (09/26/07)/Realtor magazin

Movie-star mecca is tops in home prices

Coldwell Banker index ranks most expensive, most affordable U.S. markets

Beverly Hills, Calif., topped the list as the most expensive real estate market in the country while Killeen, Texas, ranked as the most affordable among 317 U.S. markets, according to Coldwell Banker Real Estate LLC's latest Home Price Comparison Index, released Wednesday.

Beverly Hills also ranked as the most expensive market in the 2006 index report, while Minot, N.D., last year ranked as the most affordable market.

The index compares similarly sized homes in different markets and is based on the benchmark of a 2,200-square-foot, four-bedroom, 2.5-bath single-family home with a family room or equivalent and a two-car garage in neighborhoods or ZIP codes within markets that are typical for corporate middle-management transferees.

A home matching the index criteria in Beverly Hills would cost $2.21 million, while a home with similar characteristics would cost $136,725 in Killeen, Coldwell Banker reported, based on the average sales price of sold listings through July 2007 or a comparative market analysis of homes that were previously evaluated for the 2006 index.

The cumulative average sales price of the homes surveyed in the 317 U.S. markets, which includes one market in Puerto Rico, is $422,343, according to the latest index, compared with a U.S. median home price for all existing-homes of $218,200, based on National Association of Realtors data.

The average sales price of the defined subject home is slightly lower than the $423,950 average sales price of homes in the 2006 index. And 139 markets saw a decline in value among index subject homes from 2006 to 2007, while 148 experienced a price increase.

Six of the nation's 10 most affordable communities ranked in the index are either in the same market area or in close proximity to major U.S. military posts, according to the index report.
Dublin, Ireland is the most expensive international market included in the index, with subject homes selling for an average $2.1 million in U.S. dollars. Next on the list is Milan, Italy, at $1.9 million, followed by Rome and Paris at $1.7 million (all in U.S. dollars). Bogotá, Colombia, ranks as the most affordable international market, at $140,100, followed by Egypt's Sharm El Sheikh at $144,896; Charlottetown, Canada, at $157,630; and Granada, Nicaragua, at $158,375. Warsaw, Poland, at $417,760, is closest to the $422,343 U.S. average of all of the foreign markets covered in the latest index.

Jim Gillespie, president and CEO for Coldwell Banker Real Estate LLC, noted that the National Association of Realtors reported that 32 percent of all Realtors in the U.S. had at least one international client during the past year, and the company's index "serves as a guide for these world travelers and interested consumers to get a sense of how much a typical middle-management home may cost in various markets around the globe."

Eight of the top 10 most expensive markets recorded in the index are in California. Greenwich,
Conn., moved from the eighth most expensive market last year to second this year, with an average subject home price of $2 million.

Sixteen U.S. markets exceeded an average $1 million price for the subject home, and Manhattan was excluded because of the lack of comparable single-family homes.

The Northeast Corridor -- from Maine to Washington, D.C. -- and California account for 35 of the 40 most expensive U.S. markets in the Coldwell Banker index, while two locations from those regions appear in the 40 most affordable markets.

Vancouver, British Columbia, ranked as the most expensive Canadian market with an average subject home price of $1.33 million. That compares with Charlottetown on Prince Edward Island in Canada, which was that nation's most affordable market with an average subject home price of $157,630.


The Coldwell Banker System has about 3,800 residential real estate offices and about 120,000 sales associates in 41 countries and territories.

Source: Coldwell Banker 2007 Home Price Comparison Index/ Published Inman News, September 27, 2007

Housing, Job Opportunities Favor Texas

NAR expects the national median price of homes to drop to $218,200 in 2007. In Dallas, where it's warm, wide-open, and there are lots of jobs, the median home price is going up. One of the few bright spots of the retreating housing market, Dallas is beating national numbers in jobs, culture, and inflation in terms of housing appreciation. And with a median-priced home only two-thirds the price of the national median at $156,000, the city is a screaming, stomping bargain.

There's just one little problem. Dallas is moving into a financial press-led housing recession, too. Why blame the financial press? Because buyers aren't paying attention to the positives. Fear has them sitting on the sidelines just when they could score the housing touchdown of their lives.

Dallas sat out the housing boom of 2001-2006. In fact, Dallas homes appreciated below the national median for over 16 years, until this year. Recovering from the oil embargo of the 70s, the Savings and Loan crisis of the 80s and technology meltdown of the aughts, Dallas never got up off its knees. Exacerbating the problem was a squabbling, racist city council and school system. People with means high-tailed it for the suburbs, and Dallas deteriorated.

But the smell of money is in the air. Forbes magazine recently ranked Dallas-Fort Worth among the Best Cities to Live as number one in cost of living; number five for job growth, number nine both in the best cities for singles and in the culture categories.

Other Texas cities fared well, too. Austin came in at number 12 on the Best Cities list, and Houston wasn't far behind at number 14. Houston (Harris County) added 79,400 jobs between September 2005 and 2006, the nation's largest increase in employment among the nation's 325 largest counties, according to the U.S. Census.

Opportunity has attracted among the youngest and most educated workforce in the southwest in hubs like Dallas, Austin, and Houston, but Texas is a close second to Florida in luring older workers and retirees, according to a report by Thomas, Warren + Associates for the National Active Retirement Association in Charlotte, N.C.

In 2005, Texas gained 27,000 new residents over the age of 65, bringing a total of $732 million in added income to the state. While that's less than half of Florida's gain at 68,000 new older population and $1.9 billion, what's significant is a large number of workers and retirees are not "following a job" to the state, but choosing to live there on the Texas' merits.

One reason Texas is attracting young and old is the outlook for jobs. A Harris Interactive monthly survey in July found that more Texas workers are feeling confident about the job market and the future of their current employer. About 47 percent felt that the economy is coming along nicely, and a whopping 82 percent felt they were unlikely to lose their jobs.
Yet housing is struggling in Dallas. According to the North Texas Real Estate Information System which collects data from 18 MLS partners across 29 counties, the Dallas-Fort Worth hub sold 10 percent fewer homes (8,480) in August than last year. Homes are staying on the market three percent longer at 69 days than last August.

Yet median prices -- up four percent to $156,000 compared to $150,000 last year in Dallas-Fort Worth -- are bucking the trend, despite rising foreclosures in Fort Worth and mid-cities Arlington, up five percent for the first half of 2007, says RealtyTrac. Elsewhere in Texas, foreclosure filings were down more than 13 percent from mid-year 2006.

"The decline in filings and properties with filings reflects the continued steady increase in Texas residential property values, the continued stable economy and employment and the fact that Texas did not rely on extreme, exotic loan terms to the same extent as other, higher-priced markets," said Dr. Jim Gaines, research economist with the Real Estate Center at Texas A&M University in a newsletter.

Gaines says a great deal of the national foreclosure market is concentrated in a handful of states, primarily the previously hot markets in California, Florida, Nevada and Arizona, as well as as Michigan, Ohio and Indiana, where the pullback in the automotive industry has resulted in job losses.

Texas is looking more and more like the land of opportunity.

Published: September 13, 2007 by Blanche Evans / Realty Times

Money Magazine Names Best Places to Live

Middleton, Wis., is Money magazine’s top 2007 Best Place to Live.

The magazine, whose annual selection of attractive locales has the power to turn a sleepy borough into a blossoming hot spot, says that this year it focused on small cities, between 7,500 and 50,000 in population. It chose areas that offered the best combinations of economic opportunity, good schools, safe streets, things to do, and a real sense of community.It also added a ranking for ethnic and racial diversity, and it paid special attention to home prices and property taxes. That meant that some expensive locales that had done well in the past slid in the rankings.Visitors to the "Best Places to Live" section of CNNMoney.com will be able to see the latest homes for sale, recent home sales, and "Million Dollar Homes" for all of the cities highlighted in the annual feature. Users can click on city maps powered by Trulia.com to view data for each home, including location, price, photos, bedrooms/baths, and square footage.

Here’s the top-10 list:

1. Middleton, Wis.
2. Hanover, N.H.
3. Louisville, Colo.
4. Lake Mary, Fla.
5. Claremont, Calif.
6. Papillion, Neb.
7. Milton, Mass.
8. Chaska, Minn.
9. Nether Providence, Pa.
10. Suwanee, Ga.

Source: CNNMoney, Kate Ashford, Asa Fitch, Stephen Gandel, Josh Hyatt, Sarah Max, Jennifer Merritt (07/16/07)

Mortgage Rates Inch Up Slightly

Freddie Mac reports a small jump in the 30-year fixed mortgage rate to 6.34 percent this week from 6.31 percent a week ago, which is still less than the year-earlier rate of 6.4 percent.

Meanwhile, the one-year adjustable mortgage rate dropped slightly to 5.65 percent from 5.66 percent over the same period.

Freddie Mac chief economist Frank Nothaft expects the Federal Reserve's decision to cut the federal-funds rate to 4.75 percent to "dissipate some of the volatility in short-term interest rates."

Source: The Wall Street Journal (09/21/07)

10 Tips for Buying a Fixer-Upper

Buying a basically sound house and updating the cosmetics is a profitable thing to do in almost any market. But be careful what you buy or it may end up costing you later on.Here are 10 things to consider when selecting a fixer-upper:

1. Purchase homes that are at least 30 percent below the market value of comparable nearby homes.

2. Choose a location with a low crime rate, good schools, and quiet streets. There isn’t anything you can do to cure a poor location.

3. Choose a house with three or four bedrooms. Smaller homes are unlikely to have enough buyer appeal.

4. Avoid homes that need major unprofitable repairs, include wiring, major plumbing, foundation repairs, major kitchen and bathroom renovation, room additions, and/or a new room. Spending money on these basics doesn’t add value. Buyers expect them.

5. Find a home that needs profitable cosmetic improvements like fresh paint inside and out, new light fixtures, new carpets and flooring, and fresh landscaping.

6. Look for affordable, low down-payment financing, such as taking over an existing mortgage, lease with option to buy, seller carry-back financing, or a combination.

7. Avoid obtaining new bank financing until the fix-up work is completed and the home’s market value has increased.

8. Don’t buy a fixer-upper that is more than 60 minutes from your current residence because it is important to visit everyday while the renovation work is being done.

9. Make sure that the seller or tenants will vacate immediately upon transfer of title.

10. Look for sellers who are motivated to sell and who want to make the sale happen

Source: Inman News, Robert J Bruss /09/01/07

Foreclosures Climb to Record Highs in August

The number of foreclosures filed in the United States in August more than doubled compared to August 2006, and rose 36 percent from July.A total of 243,947 foreclosure filings were reported in August, up 115 percent from 113,300 in the same month a year ago, reported Irvine, Calif.-based RealtyTrac Inc. on Tuesday.The August total was the largest since the company began tracking monthly filings two years ago, representing one filing for every 510 households nationwide.Nevada, California, and Florida had the highest foreclosure rates in the country last month, the firm said. Georgia, Ohio, Michigan, Arizona, Colorado, Texas, and Indiana rounded out the 10 states with the highest foreclosure rates.

Source: The associate preess, Alex Veiga (09/18/07/

Market trend

Below you will find links for overall market activity for NTREIS, as well as activity by county. This format is designed to provide you with important market information in an easy to use format without your having to go look for it. Of course, if you need more detailed information about particular, ZIP, City just ask me and will provide it to you.

Click on the links below for Market Trend data for your county, or all areas served by NTREIS, for the month of August, 2007.

All areas: https://www.cbdfw.net/public/markettrend/all_feb.html

Collin County: https://www.cbdfw.net/public/markettrend/collin_feb.html

Dallas County : https://www.cbdfw.net/public/markettrend/dallas_feb.html

Denton County : https://www.cbdfw.net/public/markettrend/denton_feb.html

Ellis County : https://www.cbdfw.net/public/markettrend/ellis_feb.html

Rockwall Countty:

https://www.cbdfw.net/public/markettrend/rockwall_feb.html

Tarrant County: https://www.cbdfw.net/public/markettrend/tarrant_feb.html

Protect yourself

There is a current practice being employed by several of the major credit bureaus.

In short, these credit bureaus are selling lists of consumers who have had inquiries from mortgage companies. However, I am providing a link below to a web site that you can use to “opt out” and keep the credit companies from selling your information and to protect you from the imposition of unsolicited phone calls, and/or mail solicitations.
Please review the below information along with the link that we are providing which will help you protect yourself from credit bureaus who wish to sell your personal information.

. Several major credit bureaus are offering products that provide customer information in regards to consumers who have applied for a recent mortgage to other mortgage companies. This information is being purchased by lenders who wish to aggressively solicit you with the knowledge that you have recently inquired about a mortgage.

. This practice can impact customers regardless of which lender they choose for their mortgage financing.

. The only preventive action preventing these calls is to opt-out of such offers. We are providing you with the following link to a website that you can use to “opt out” and keep credit bureaus from selling your name and details of your recent credit inquiries - www.optoutprescreen.com. By utilizing this link to Opt Out, you are protecting yourself for 5 years - ensuring that you and your personal information are protected for any future credit inquiries you may have well into the future.

. The Credit Bureaus maintain that their marketing of overnight mortgage inquiry leads violates no federal or state rules, and is merely a speed-up version of their routine sales of lists for other pre-approved offers of credit.

. CB Home Loans does not sell consumer information and have strict consumer privacy policies.

100% financing is still possible

If you have over 740 points credit score you will be able to be financed %100. You will be qualified for a second loan with over 660 points or %10 down payment. Your score is between 600 - 660 points, you are still in the prime flow but need to put some money down.

Almost the same deal is with the investment properties but all of the lenders require %5 down payment. The interest rate depends on how much cash will be put on the table and fluctuates between 0.25 - 1 point over the regular conventional loan. Lenders do not consider second home over 50 mils away from your homestead as an investment property and the interest rate will be just a little higher than the regular one.

I am providing a link where you would be able to obtain more detailed information or get pre-approved for a loan:

http://ritalewis.coldwellbankerhomeloans.com/

Mortgage Problems Dampen Home Sales

Mortgage Problems Dampen Home SalesTighter credit for home mortgages will measurably soften home sales in the short term and postpone an expected recovery for existing-home sales until 2008, according to the latest forecast by the NATIONAL ASSOCIATION OF REALTORS®.

Lawrence Yun, NAR senior economist, says unusual disruptions in the mortgage market are dampening the outlook for home sales, notably for August and September. “There’s been an unusual hit to home sales, starting in March when subprime problems emerged and more recently when problems spread to jumbo loans, with many potential buyers on the sidelines,” Yun says. “However, the jumbo loan market is now beginning to settle, and FHA-insured loans are helping to fill the subprime vacuum. The volume of existing-home sales this year will be better than 2002, which was the second year of the housing boom.”

Housing Outlook

Existing-home sales are projected at 5.92 million this year and then expected to rise to 6.27 million in 2008, compared with 6.48 million in 2006. New-home sales should total 801,000 in 2007 and 741,000 next year, below the 1.05 million in 2006.

“A sharp production pullback by homebuilders deep into 2008 is a healthy trend that will help trim down housing inventory,” Yun says. Housing starts, including multifamily units, are expected to total 1.37 million this year and 1.26 million in 2008, compared with 1.8 million in 2006.

“The mortgage markets will calm further in the months ahead, but it’s important to underscore the fact that conventional loans — the vast majority of available financing — are available to creditworthy borrowers,” Yun says. “Patient buyers in most areas who do their homework will recognize that housing remains a good long-term investment.”

Existing-home prices are likely to slip 1.7 percent to a median of $218,200 this year before rising 2.2 percent in 2008 to $223,000. The median new-home price is estimated to drop 2.2 percent to $241,100 in 2007, and then increase 1.7 percent next year to $245,100.

Here are some other economic factors that will likely influence the housing market:

The 30-year fixed-rate mortgage is projected to average 6.4 percent for the balance of the year and then edge up to the 6.5 percent range in 2008. “We expect the Fed to cut rates two times before the end of the year, which will lower interest rates for prime borrowers and FHA-insured loans,” Yun says. “FHA modernization could buffer the fallout of subprime loans, which would raise our sales forecast in the future.”


Growth in the U.S. gross domestic product is forecast at 2 percent in 2007, below the 2.9 percent growth rate last year; GDP will probably grow 2.7 percent in 2008.


The unemployment rate should average 4.6 percent for 2007, unchanged from last year. Inflation, as measured by the Consumer Price Index, is estimated to be 2.8 percent in 2007, compared with 3.2 percent last year. Inflation-adjusted disposable personal income is likely to increase 3.6 percent this year, up from 3.1 percent in 2006.

Published by Realtor Magazin Online on 09/14/2007