Census: Texas Is the Hot Place to Live

DALLAS (AP) - Four Texas metropolitan areas were among the biggest population gainers as Americans continued their trend of moving to the Sun Belt in 2006 and 2007, according to Census Bureau estimates to be released Thursday.

Dallas-Fort Worth added more than 162,000 residents between July 2006 and July 2007, more than any other metro area. Three other Texas areas - Houston, Austin and San Antonio - also cracked the top 10.

Atlanta saw the second-largest population jump with just over 151,000 new residents. Phoenix was third with more than 132,000, and was followed by Houston, Riverside, Calif., Charlotte, N.C., Chicago, Austin, Las Vegas and San Antonio.

Of the 50 fastest-growing metro areas, 27 were in the South and 20 were in the West. Two were in the Midwest, one - Fayetteville, Ark. - straddles the South and Midwest and none was in the Northeast.

Read the entire article:

http://apnews.excite.com/article/20080327/D8VLSLD82.html

Is really the housing market too bad?!

According "New York Times", "The value of single-family homes plummeted 10.7 percent in January compared with a year earlier, as measured by the Case-Shiller index, a closely watched survey of 20 major metropolitan regions". But the same news paper did not say how much the value of single famely homes has increased between 2001 and 2007.

Lets take a look on how much the houses has been appreciated between 2001 and 2007. For Las Vegas appreciation has been over 100%. For the last 12 months ending in January the same area lost 20% in value or for the same period the average price for Dallas has declined with 3.3% versus average 5 - 6% appreciation between 2001 - 2007.

Looking at the last 25 years in real estate there have been fluctuations, but overall prices have increased. We had times of price depreciations from 1988 to 1995 when the inventory of homes increased significantly. Inventory has been low since 1995, and therefore prices have increased. We currently are beginning to se signs of similarity to the 1988-1995 era showing high inventories compared to sales. Home prices move up or down depending on the supply of houses


As a commodity real estate has its ups and downs just like the stock market and after get to the tipping point the market will go up. This is nothing unusual, just a normal cycle.

Home Prices and Consumer Sentiment Slide

Home prices across the country continued to fall in January at record rates while one measure of consumer confidence reached a five-year low.

The value of single-family homes plummeted 10.7 percent in January compared with a year earlier, as measured by the Case-Shiller index, a closely watched survey of 20 major metropolitan regions.

It was the steepest year-over-year decline since the index began eight years ago, and economists said the slump was probably worse than at the height of the last housing recession in the early 1990s.

To read more click on the link below:

http://www.nytimes.com/2008/03/25/business/25cnd-econ.html?em&ex=1206676800&en=7ae30ba6225d08ef&ei=5087%0A

Mortgage Insurer Tightens Standards

Beginning next month, MGIC Investment Corp., the country’s largest mortgage insurer, will reduce its exposure in weak housing markets by requiring at least 5 percent down on homes in what it calls restricted markets.

These markets include the entire states of Arizona, California, Florida, and Nevada, as well as the metropolitan areas of Washington, D.C., Detroit, Chicago, Boston, and Atlanta.

Home owners hoping to insure condos will have to put down 10 percent.

Read more:

http://www.realtor.org/RMODaily.nsf/pages/News2008021206?OpenDocument

Why the Fed's rate cuts won't help you

The Federal Reserve today continued its attempt to get out in front of the worst financial crisis to hit the world banking system in five decades by slashing short-term interest rates by three-quarters of a percentage point, to 2.25%, the lowest level since 2004.

But the Fed's effort will have little effect on the ability of the average American to get a cheap loan for a new home, car or college education even as it has a large effect on U.S. banks' ability to fix their balance sheets by racking up fat profits.

To read more click on the link below:

http://articles.moneycentral.msn.com/Investing/SuperModels/WhyTheFedCutsWontHelpYou.aspx

Existing-Homes Sales Slip in January

Existing-home sales eased slightly in January with some potential buyers trying to time the market and others waiting for higher loan limits on conventional financing, according to the NATIONAL ASSOCIATION OF REALTORS®.

Existing-home sales — including single-family, town homes, condominiums, and co-ops — slipped 0.4 percent to a seasonally adjusted annual rate of 4.89 million units in January from an upwardly revised level of 4.91 million in December. Existing-home sales are 23.4 percent below the 6.44 million-unit pace in January 2007.“

Subprime loans and other risky mortgage products have virtually disappeared from the marketplace, and over the past five months, this has been reflected in soft but fairly stable home sales,” says Lawrence Yun, NAR chief economist. “As the increased limits for FHA and conventional loans are implemented, more buyers will have access to safer FHA loans and lower interest rate loans in high-cost areas, which could lead to steadily higher home sales later in the year.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 5.76 percent in January from 6.10 percent in December. The rate was 6.22 percent in January 2007. Last week, Freddie Mac reported the 30-year fixed rate rose to 6.04 percent.

Read more:

http://www.realtor.org/RMODaily.nsf/pages/News2008022501?OpenDocument

NAR: Home Sales to Hold Steady

The volume of existing-home sales is expected to remain stable through late spring, with a gradual recovery during the second half of the year as the mortgage situation improves in high-cost areas, according to the latest forecast by the NATIONAL ASSOCIATION OF

REALTORS®.Lawrence Yun, NAR chief economist, says many buyers have been waiting for higher mortgage loan limits.

http://www.realtor.org/RMODaily.nsf/pages/News2008030601?OpenDocument