Friday, April 29, 2005

Real Estate Matters - News & Issues for the Mature Market - 2nd Quarter 2005

Trends in Senior Housing so you can stay in your own home longer - with safety, independence, comfort, and the ability to function.


Aging in Place deals with how to modify and adapt existing homes.


Universal Design
primarily deals with the creation upfront of easily accessible homes and products rather than after the fact modification.


Think of it as pre-planning.



What is Aging in Place?

-Remaining in your current home as you grow older -
"Not having to move from one's present residence in order to secure necessary support services in response to changing needs." Journal of Housing for the Elderly.

-A new variation is aging in your current community, where your friends, activities, and organizations are located but in a different house or condo, not your home of thirty years where you raised your children.

The National Association of Home Builders defines aging in place as:

-remaining in one's home safely, independently, and comfortably
-the pleasure of living in a familiar environment throughout one's maturing years
-the ability to enjoy the familiar daily rituals and special events that enrich our lives
-the reassurance of being able to call a house a home for a lifetime.


Do you live in a NORC?
Over one-fourth of seniors live in Naturally Occurring Retirement Communities, where residents have aged together. Maybe you moved there for the quality high school, raised your kids together, buried each other's parents, created a tightly knit community, and stayed.

When reviewing your goals, ask yourself, "Do I want to live in a community exclusively comprised of peers? Do I want a blended community of children, families, middle-agers, and seniors?"

Where you are located at age 65 is probably where you will stay. Seventy percent (70%) of seniors live out their lives wherever they were at 65. Many plan for retirement and relocate at 65 or earlier and then stay there. The early baby boomers (born at the end of WW II) are moving in their late 50's to early 60's to their vacation homes and then staying put. Some are relocating and then commuting from the planned retirement home to work during those last few years in the work world.

An AARP study revealed that 89% of homeowners prefer to remain in their homes, yet 80% of the population will require special housing needs at some point in time.

Modifications can make it possible for you to stay in your own home for many more years.


Specific Remodeling

Breaking a hip is a common and valid fear. Without aggressive physical therapy, the consequences are serious. The obvious changes are handrails and lights in the hallways, grab bars in the shower and tub. But it goes beyond that for safety, comfort, and ability to function.

You and your SRES® may wish to consult a professional early on when evaluating what you need now and may need in the near future to stay in your home. A home builder or remodeler who is a Certified Aging-in-Place Specialist should be a part of your team.

Focus on modifications that cater to any potential limitations. The list below is not a massive to-do list but areas to consider that may uncover previously unrecognized needs.

General

-Adapt lower floor of home for possible one level living
-Increase general incandescent and specific task lighting
-Easy garage or parking access
-At least one entry without steps
-Doorways 36" wide with off-set hinges on doors
-Levered door handles instead of knobs- so Grandpa Arthur (short for Arthritis) doesn't have to grasp and turn handle
-Electrical outlets at 18 inches instead of 12
-Easy to open or lock patio doors and screens
-Light switches at 42" instead of 48
-Adjustable controls on light switches
-Lighted, glow in the dark switches in bedrooms, baths and hallways
-Strobe light or vibrator-assisted smoke and burglar alarms
-For easy opening to enjoy that springtime breeze-lower window sills especially for windows on the street
-Programmable thermostats for heating and cooling
-Contrast colors between floor and walls
-Color borders around floor and counter-top edges
-Non-skid flooring
-Matte finish paint, flooring and counter-tops (eliminates glare)
-Non-glare glass on art work
-Lower the peep hole
-Incorporate an emergency response system -- built in or wearable

Bathroom

-Install anti-scald valves for lever faucets and faucet mixers
-Temperature controlled shower and tub fixtures
-Stall shower with a low threshold and shower seat
-Grab bars at back and sides of shower, tub and toilet or wall reinforcement for later installation
-Bathrooms with turn around and transfer space for walker or wheelchair (36" by 36")
-Bathroom counters at workable height
-Telephone jack
-Installation of medical response device

Kitchen

-Equip kitchen cabinets with pull-out shelves and lazy susans
-Easy to grasp cabinet knobs or pulls
-Task lighting under counters
-Cooktop with front controls- more accessible and keeps your Great Aunt Sophie's blue nylon nightgown sleeves from catching on fire.
-Side by side refrigerator. This reduces bending. Adjustable upper shelves and pull out lower shelves
-Variety in kitchen counter height - some as low as table height (30 inches)
-Gas sensor near gas cooking, water heater and gas furnace
-Color or pattern borders at counter edges

Living Room

-Seating at least 18 inches off the floor (reserve the bean bag chairs for the grandchildren)
-Chairs with sturdy arms and shallow seats -- for ease of getting up
To locate the Certified Aging in Place Specialists in your state and their areas of expertise, go to www.nahb.org/directory and enter aging in place specialists in the search box, upper right corner.
If you are strapped for cash to remodel and want to age in place, in addition to exploring reverse mortgages, check your State Controller's Office to find out if your state allows low--income seniors to postpone your property tax. Some states allow this with a delay of payment until you sell your property or your estate is settled.

If you want to age in place in a smaller or less expensive home, check out your county's downsizing tax breaks. If you are over 55, sell your home and move to a home of equal of lesser value in the same area, some areas/counties calculate your property tax using the base year value of your old home.



Universal Design

Universal Design definition: the design of products and environments to be usable by all people, to the greatest extent possible, without the need for adaptation or specialized design.

You need to be aware of this growing trend of building homes that incorporate Universal Design and look for those design features when buying a home. Many of the remodeling items listed above were included in the blueprints for these newer homes.

The summer polio scourges of the 1930's, 1940's and early 1950's (before Salk's vaccine) impacted thousands. Those who survived lived with a range of disabilities. Many of those physical limitations were accommodated by the benefits that arose from the universal design movement, such as lowered water fountains and level subway platforms.

The Center for Universal Design lists the seven principals that guide the design of more usable products and environments:

1. Equitable Use means a useful design for people with diverse abilities. Privacy, safety and security equally available for all. Same means of use of equivalent.

2. Flexibility accommodates a wide range of individual preferences and abilities. Adaptable to user's paces, Serves both left and right handed users and aids uses precision. An example would be left handed scissors.

3. Simple and Intuitive: How to use is easy to understand- independent of exper-ience, language, knowledge or ability to focus.

4. Perceptible Information design tells you what you need, independent of the surrounding conditions or users senses, such as hearing. Provides the information several ways- such as verbally, visually, and for the blind- by touch. Make legible for all -- no tiny print!

5. Tolerance for Error minimizes hazards (such as the barbeque requiring two actions to make the propane work) and consequences of accidents or screw ups. And provides a means to fix those screw ups- such as the computer UNDO button.

6. Low Physical Effort reduces repetition and sustained effort, plus incorporates reasonable and prudent operating forces. Also normal body position- Should not require a circus contortionist to operate.

7. Size/Space for Approach & Use Regardless of body size, posture, or mobility. A user can approach, reach, or manipulate in the appropriate space. A basketball player can enter a room without smacking his head, the bathroom doors are wide enough for wheelchairs, and if you are not a basketball player, you can still reach the kitchen cabinets.

Why is all this important to you?

Because when you are buying a home, one with Universal Design components can allow you to stay in that home independently and safely for much longer. And those key benefits help when selling a Universal Design home.

An example of Universal Design concept is the ergonomic (science of people and things interacting safely and effectively) Good Grips kitchen tools.

They are comfortable, affordable tools for everyone who cooks. And great food prep tools for those of us who do more food assembling than "cooking." (My great grandmother's generation thought you couldn't cook if you couldn't bake.) Yet initially these products arose in the late 80's out of Sam Farber's frustration and his arthritic's wife's difficulties with most kitchen gadgets.

After much research with industrial designers and gerontologists, Sam had a hit. The company was profitable in the first year and sales grew 50% each year thereafter in its first decade. The peeler doesn't bend in half under pressure, doesn't hurt your hand, doesn't rust within six months, and actually works-and works well.

For three Christmas' running, I included the peeler with all my gifts, then switched to the pizza cutter. Families and even my cooking-challenged bachelor friends need a pizza cutter.

And the parent company's name OXO is the same spelled backwards, forwards, and upside down- a universal design name!

Universal Design helps you physically cope, without discomfort.



So Aging in Place remodeling or buying a Universal Design home are key options to help keep you in your own home.


Online resources for seniors living at home:For resources that can help seniors stay in their own homes,go to www.aging-parents-and-elder-care.com , then scroll down the center and click on Independent Living.

This site provides a variety of links with resources that can help seniors remain in their homes, including Lifeline Medical Alert Systems at www.lifelinesys.com and the Senior Corp elder companion program. Go to www.seniorcorps.org and click on About Us on the left side. Then scroll down to find Senior Companions and click.

To access Making Your Home Safe for Seniors: A Room-by-Room Assessment, go to http://oursenioryears.com/homesafety.html


As a Seniors Real Estate Specialist (SRES)®, I have the training and resources to work with you on all of your real estate needs. I will work with you to provide you with information to benefit you as a homeowner. For more information on important Senior Issues, contact me.

Source: Senior Advantage Real Estate Council®


Visit my web site for additional resources and services: http://LawrenceYerkes.com

or visit http://BestHomes-NJ.com for the latest property listings (residential, commercial, multi-family, farm, land)



Copyright 2005 by Timon, Inc. All Rights Reserved.

Thursday, April 28, 2005

HUD Raises Fines for Lenders Who Fail To Assist Troubled Borrowers

WASHINGTON -The Department of Housing and Urban Development today published a final rule that dramatically increases the amount of damages HUD can seek against FHA lenders that fail to engage in loss mitigation techniques. Loss mitigation options enable many homeowners who are in default on their FHA mortgage to avoid foreclosure and remain in their homes.

"We are working to ensure that every FHA borrower is afforded the opportunity to explore all options to keep their homes," said HUD Secretary Alphonso Jackson. "Our lenders must make every effort to help people stay in their homes, help to stabilize neighborhoods and prevent losses to FHA's Insurance Fund."

Currently, the maximum penalty that can be imposed on lenders is $6,500 for each violation, up to a limit of $1.25 million for all violations committed during any one-year period. This new penalty provides for additional damages of three times the amount of any FHA mortgage insurance benefit claimed by a lender and is not subject to the current limitations.

In recent years, HUD has strived to ensure that lenders work with FHA-insured homeowners in default to see how they may qualify for one of HUD's loss mitigation options. In the past three fiscal years, almost 230,000 defaulted FHA borrowers benefited from loss mitigation, more than lost their homes through foreclosure. This new rule will build upon those efforts by specifically addressing how HUD will be empowered to penalize lenders who fail to successfully engage in loss mitigation techniques and by specifically defining the criteria used to evaluate a lender's performance.

Failure to engage in loss mitigation is defined as a servicing lender's failure to: evaluate a loan for loss mitigation before four full monthly mortgage installments are due and unpaid; determine which, if any, loss mitigation techniques are appropriate and take appropriate loss mitigation actions. HUD will use its Tier Ranking System (TRS) to measure a lender's loss mitigation efforts on a portfolio-wide basis, and rank the lender based on the ratio of loss mitigation actions to foreclosure actions. HUD intends to focus its efforts on lenders ranked in the lowest tier.

Loss mitigation techniques include the following:

* Special Forbearance, in which the lender arranges a repayment plan based on the borrower's financial situation and possibly provide for a temporary reduction or suspension of payments;

* Mortgage Modification, in which the lender capitalizes the mortgage delinquency, usually reducing the monthly payment and/or extending the term of the mortgage;

* Partial Claim, in which the lender obtains a one-time payment from the FHA insurance fund to bring the mortgage current;

* Pre-Foreclosure Sale, in which the borrower avoids foreclosure by selling the property for its appraised value, and these proceeds are less than the amount necessary to pay off the mortgage, and

* Deed-in-Lieu of Foreclosure, in which the borrower gives back the property to the lender. The borrowers lose their house, but do not damage their credit rating as much as a foreclosure would.


For each of these options, the borrower must meet certain qualifications, based on their circumstances. HUD's site, "Help for Homeowner's Facing the Loss of Their Home," provides a step by step plan and offers more details on HUD's loss mitigation programs.


HUD No. 05-059


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New-Home Sales Break Records in March

April 26, 2005 - Sales of newly built single-family homes rose by an unexpectedly strong 12.2 percent to hit an all-time high seasonally adjusted annual rate of 1.43 million units in March, according to Commerce Department figures released today.

“This surprisingly good number shows there’s still plenty of demand in today’s new-home marketplace,” said David Wilson, president of the National Association of Home Builders (NAHB) and a custom home builder from Ketchum, Idaho. “It may be that higher mortgage rates pushed more fence-sitters to go for it last month, which often happens when further rate gains are expected.”

“The strength of this market continues to surprise most experts, and March’s big acceleration in new-home sales was both unexpected and unaccounted for by our own builder surveys and other market signals,” acknowledged NAHB Chief Economist David Seiders. “Given the pace of sales to date and the slimmer inventories of unsold homes, clearly the production side of this business remains exceptionally healthy. We are, however, keeping a close eye on investor activity in some extremely hot markets.”

According to the Commerce Department, the number of new homes for sale fell about one percent in March, to a relatively thin 3.6 months’ supply at the current sales pace.

Three out of four regions posted higher home sales in March, with the Northeast’s 9 percent decline being the only exception. Sales gained 22 percent in the Midwest, 13.8 percent in the South and 10 percent in the West.

Commerce today also reported substantial upward revisions to its nationwide new-home sales figures for December, January and February.

“Looking to the future, it will be difficult to sustain as quick a sales pace as we’ve seen in March,” Seiders noted. “However, given the fact that long-term mortgage rates have actually fallen since then and that inventories are in such good shape, it’s likely that new-home sales for all of 2005 will challenge last year’s record 1.2 million units.”


Source: National Association of Home Builders (NAHB)


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Wednesday, April 27, 2005

Most Expensive Zip Codes

According to a Forbes web site article (click here), the most expense zip code in the nation is 94027 (Atherton, CA), with a median 2004 home sale price of $2,496,553. 90210 (Beverly Hills) is #15 at $1,512,886. A major portion of the top 25 Zip Codes are located in CA.

In New Jersey:

The top zip code is 07620 (Alpine, NJ) at $1,773,880 and #8 nationwide;

followed by 07976 (New Vernon, NJ) at $1,760,000 and #10 nationwide.




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Copyright 2005 by Timon, Inc. All Rights Reserved.

Tuesday, April 26, 2005

Two Interesting Approaches to Dieting and Good Health

It seems like there are tons of dieting systems, new ones or variations of old ones, coming out every day. You could spend practically every day of you life trying out a new system or variation. Most of the systems are geared to loosing weight or some rather focused and isolated objective. There are two interesting approaches to dieting that are concerned more with attaining and maintaining good health. Though not without their set of critics, they have been in existence for several years and are based on growing scientific and empirical data, including double-blind studies, and well reasoned correlation of the observed and repeatable effects of food on our body. The two systems are: the Zone Diet and the Blood Type Diet.

Utilizing the the two system systems with a balanced, moderated approach has been fairly effective for me personally, with consistent results. To me, they are complementary and supplementary to each other. I can not go into any detail here, other than to introduce you to the two systems and point you in the direction of their corresponding web sites and books.

Both systems are championed by doctors, one a PhD in Biotechnology, the other a Doctor of Naturopathy. Both doctors are researchers, lecturers and top-selling authors. The are coming from different points of view, but their shared goal is to help you obtain and maintain maximum health through proper diet and exercise.

Barry Sears, PhD, is a pioneer in biotechnology, having developed drug delivery systems for cancer and heart patients. A former staffer at MIT, he holds twelve patents for cancer treatments and dietary control of hormonal responses. He is a widely published scientist and researcher, and is New York Times #1 bestselling author of Inside The Zone, Mastering The Zone and other related books. His two primary books, establishing and defining his Zone Diet, are interesting, practical and accessible by most lay people (especially the introductory and practical application sections), but the books are not a casual read with their strong scientific underpinning.

Dr. Peter J. D'Adamo is a naturopathic physician, researcher, and lecturer. He has written many articles for medical journals and serves on the scientific advisory board of several major insurance companies. He was selected Physician of the Year in 1990 by the American Association of Naturopathic Physicians, and Clinician of the Month in February 1991 by Preventive Medicine Update. He is the founder and editor emeritus of The Journal Of Naturopathic Medicine. He is author of the bestselling Eat Right For Your Type and other related books. Eat Right For Your Type is written for the lay person and is easy to read. Note that while his blood type system was born of testing and observations, his theoretical explanations as to how blood types came about and developed are based on assumptions and subsequent extrapolations that require a leap of faith that I am not willing to take with him. Fortunately you can ignore that part with no impact on the system itself.

Check them out and test them for yourself. I know of no one who has not been enlightened and not benefited in some way from the knowledge and awareness they've attained as a result of these systems and their supporting literature. You owe it to your own health and well-being to at least investigate, evaluate and test their effectivenes for yourself and your family.


Book by Dr. Sears about The Zone Diet:

Enter The Zone

Mastering The Zone

More books about the Zone Diet

Dr. Barry Sears offical web site: http://www.zonediet.com


Books by Dr. D'Adamo about The Blood Type Diet:
Eat Right For Your Type

Eat Right For Your Type - Complete Blood Type Encyclopedia

More Books About The Blood Type Diet by Dr. D'Adamo

Dr. Peter J. D'Adamo's BloodType Diet WebSite: http://www.dadamo.com/






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Copyright 2005 by Timon, Inc. All Rights Reserved.

More Young Americans Buy Homes

(April 26, 2005) -- The homeownership rate among individuals under the age of 25 rose to 25 percent in 2004 from 15.9 percent in 1995, a 59 percent gain, according to a report by the U.S. Census Bureau.

Experts attribute the increase to low mortgage rates, loans that require only 3 percent to 5 percent down, and the promise of mortgage-interest tax deductions. Additionally, many young renters realize that mortgage payments are often cheaper than rent.

Jim Kochis, a senior loan officer for Coldwell Banker, also notes that lenders have eased some purchase guidelines, allowing borrowers to reserve 45 percent of their incomes for home payments. In the past, buyers could spend no more than 28 percent of their incomes on a mortgage.

Those with good credit and little student-loan debt qualify for the lowest interest rates and downpayments.

Source: New Haven Register (04/24/05); Baruzzi, Cara



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NAR: Existing-Home Sales Rise in March to Third Highest Pace on Record

WASHINGTON (April 25, 2005) – Existing-home sales rose to near-record levels in March with a continuation of strong home price gains, according to the National Association of Realtors® (NAR).

Total existing-home sales – including single-family, townhomes, condominiums and co-ops – increased 1.0 percent in March to a seasonally adjusted annual rate* of 6.89 million from an upwardly revised pace of 6.82 million in February. March sales were the third highest level on record, and were 4.9 percent above the 6.57 million-unit pace in March 2004. The record was a sales rate of 7.02 million in June 2004, followed by 6.98 million in November 2004.

View Existing Home Sales Data

David Lereah, NAR’s chief economist, said economic improvements have been supporting the housing sector. “With mortgage interest rates remaining historically low, gains in the labor market and economic growth appear to have lifted the confidence of home buyers,” he said. “There’s no question there is a strong demand for housing from a growing population.”


The national median existing-home price for all housing types was $195,000 in March, up 11.4 percent from March 2004 when the median price was $175,000. The median is a typical market price where half of the homes sold for more and half sold for less.

NAR President Al Mansell said this is the third consecutive month in which home prices have experienced double-digit annual gains. “Although there are solid fundamentals underlying the strength of the housing market, we’d really like to see a bigger supply of homes so people don’t feel pressured when making purchase decisions or contract offers,” he said. “Since housing is a long-term investment, it’s important for buyers to work with a professional who can guide them through the transaction process with a full understanding of all of the alternatives.”

Total housing inventory levels fell 0.2 percent at the end of March to 2.33 million existing homes available for sale, which represents a 4.0-month supply at the current sales pace.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 5.93 percent in March, up from 5.63 percent in February; the rate was 5.45 percent in March 2004.

Existing condominium and cooperative housing sales slipped 0.1 percent to a seasonally adjusted annual rate of 845,000 units in March from a level of 846,000 units in February. Last month’s sales activity was 7.0 percent above the 790,000-unit pace in March 2004. The median condo price was $206,800, up 15.9 percent from the same month a year ago. Condo sales last month accounted for 12.3 percent of market activity.

Single-family home sales rose 1.2 percent in March to a seasonally adjusted annual rate of 6.04 million from a level of 5.97 million in February. Last month’s sales activity was 4.5 percent above the 5.78 million-unit pace in March 2004. The median single-family home price was $193,600 in March, up 11.3 percent from a year earlier.


...Existing-home sales in the Northeast held even at an annual pace of 1.14 million units in March, and were 5.6 percent above the level of a year ago. The median existing-home price in the Northeast was $242,000, up 14.7 percent from March 2004.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing more than 1 million members involved in all aspects of the residential and commercial real estate industries.

# # #

* 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.

Existing-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 percent of total home sales, are based on a much larger sample – nearly 40 percent of multiple listing service data each month – and typically are not subject to large prior-month revisions that are fairly common in the new-home sales series.Existing-home sales for April will be released May 24. The next Pending Home Sales Index will be on May 2 and the forecast will be revised May 9.

Copyright NATIONAL ASSOCIATION OF REALTORS®



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Seniors Live Large on a Reverse Mortgage

(April 26, 2005) -- Reverse mortgages have become one of the fastest-growing products in the residential-finance industry, and the increase is being fueled by elderly people who want to tap the equity in their homes so that they can live a pampered lifestyle.

Mortgage industry observers say seniors are now taking out reverse mortgages to purchase airplanes and recreational vehicles, rent apartments in cities such as Paris, and buy second homes as vacation properties.

"The product has evolved from needs-based reasons," says James Mahoney, senior funding CEO of Financial Freedom, of reverse mortgages, which initially were used primarily to avoid foreclosure, make needed home repairs, and cover prescription drug costs and other living expenses.

The federally insured reverse mortgage product has doubled to about 38,000 loans worth approximately $6 billion for the fiscal year ended Sept. 30.

Source: The Wall Street Journal (04/26/05); Greene, Kelly


See prior blog entry:
Real Estate Matters: News & Issues for the Mature Market - 1st Quarter 2004 > Considering A Reverse Mortgage




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Monday, April 25, 2005

U.S. Minority Homeownership Hit an All-Time High During the First Quarter of 2005

April, 25 - Housing and Urban Development (HUD) announced that the Census Bureau released data today showing that minority homeownership hit an all-time high during the first quarter of 2005. The new quarterly record rate of 51.6 percent means that 15.7 million minority families now own their own homes.

There was also a new quarterly record for Hispanic homeownership. The rate of 49.7 percent means there are now 5.8 Hispanic homeowners in the United States.

Overall homeownership was also at an all-time high in the first quarter, with 74.5 million American families now owning their own homes.

"These new numbers, combined with news that sales of previously-owned homes were near record levels last month, show that housing is still a leader as our economy continues to improve. The Bush Administration is committed to building on these accomplishments so that people from every walk of life can have the opportunity to become homeowners," said Housing and Urban Development Secretary Alphonso Jackson. "The President's housing initiatives are paving the way for more Americans, particularly minorities, to achieve that dream."

Two years ago, President Bush challenged the nation to create 5.5 million new minority homeowners by the end of this decade. To date, there has been a net increase of 2.3 million minority homeowners, which represents 43 percent of the 5.5 million goal


Ref: HUD No. 05-057


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Copyright 2005 by Timon, Inc. All Rights Reserved.

Rent vs. Buy - How Much Can You Afford?

Use this tools and related resources to help you to determine if and when you should be buying instead of renting:

Can You Buy? - This mortgage calculator will produce and analysis report to help you determine loan amounts, affordability, mortgage qualification, or whether you should be renting or buying..

Rent vs. Buy - Use this calculator to determine whether it is a better financial decision to rent or to own a home.

Ginnie Mae - Your Path to Home Ownership (including Renting vs. Buying calculator) - With the information you provide, you will receive a general estimate of how much you can afford to spend on a house; a calculator that gives estimates for FHA, VA and Conventional loans based on the home sale price you provide; plus more First Time Homebuyer tools and resources.

ABA - Rent vs. Buy Calculator - If your current rent payment were going toward a house payment instead, what size mortgage would you be paying? Use this calculator to find out.


Even if you decide to rent, when making an offer to a prospective landlord, they will usually require submission of a credit report. Use the following to estimate and learn about what is considered in determining you scores:

Credit Score Estimator - Want a quick idea of how lenders are likely to rate your credit? The FICO® Score Estimator, created by the inventor of the FICO® score -- Fair Isaac -- will evaluate the information you enter and estimate your credit score range based on that information. Additional simulations and access to actual scores are available at the Fair Isaac web site: MyFICO.com

For more information about the FICO score and your credit, see the following previously-posted blog entries...

Credit Score Truths and Myths

How Your Credit Effects Your Insurance

Free Annual Credit Report for Consumers

[Update:
Click here for information about the new standardized VantageScore that the 3 major credit reporting companies have jointly developed and are marketing to compete against the FICO score.]



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Copyright 2005 by Timon, Inc. All Rights Reserved.

Sunday, April 24, 2005

Your Favorite Radio Station Wherever You Go

Radio-Locator - lists all known sites on the Internet that publish information about broadcast radio stations. Look for your favorite home radio station or discover a new station. You can select by call-sign, city, format, state, country and advance search. If your radio station broadcasts on the Internet, you can find them here. Don't miss out on your favorite radio programs and news just because you are not in range of the station's radio signal. Listen to them live on the Internet.

Virtenna - Here's a great place to easily find and play your favorite AM/FM radio stations and to browse and discover stations from around the world. You can search by location and type of programming. So far you can play US stations from Boston, Chicago, Los Angeles, New York, Philadelphia, San Francisco, San Jose, and Washington, DC. Each city features dozens of the major broadcasting stations (and some you didn't even know existed). Many international locations are also featured. Just pick your favorite news, music or talk show and these folks whisk you off to a new land with one simple click!

For some additional Internet Radio broadcasts sources check out:

RadioTime - combines a web-based guide of radio programs and stations with software to listen live and record AM/FM and Internet radio.

Live365.com - Internet broadcast network -- for Internet-only programming.


See also my later article: Find Your Favorite Public Radio Program, Discover New Ones



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Copyright 2005 an 2008 by Lawrence Yerkes. All Rights Reserved.

Thursday, April 21, 2005

Average Price of Existing Home Sales thru February 2005

According to the National Association of Realtors (NAR), the average nationwide price of homes sold, as of February 2005 is $191,000. For the Northeast it is $251,000, second only to the West which is $279,000.
For the U.S., that represents an 11% increase over the same month the previous year and a corresponding 18% increase for the Northeast. (These are not seasonally adjusted figures and included all types of homes.)

For the Northeast, this compares against a 2004 price of $219,000 and 2003 price of $188,500.

According to the the NAR, "Condo home prices nationwide increased by 20.5%, versus 9.4% for single-family homes... Home prices are in no danger of falling. Nationally, prices are projected to rise a solid 5.5% for all of 2005."

The number of home sales continue to be strong, near record highs.

In our Northeast/New Jersey area, it is still basically a seller's market.




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Wednesday, April 20, 2005

Census Bureau to Update Information on Nation's Housing

A nationwide survey conducted by the U.S. Census Bureau in 2003 found that the country’s households spent a median of $684 monthly on housing costs. The respective figures for homeowners and renters were $718 and $651.

Beginning April 25, Census Bureau field representatives will visit 59,000 randomly selected housing units to update these figures as well as other important housing information. The questions they will ask are part of the biennial American Housing Survey (AHS), the most comprehensive survey of U.S. housing conducted between censuses. The Census Bureau has been conducting the AHS since 1973 for the Department of Housing and Urban Development (HUD).

The field representatives will gather information about the size, composition and condition of the nation’s housing, as well as the financial and demographic characteristics of the residents. Specific questions will ask about the lot size, the year the structure was built, plumbing facilities, the type of mortgage, source of water, the frequency of equipment failures, the neighborhood’s condition and residents’ overall opinions of their neighborhoods.

By law, the Census Bureau protects the confidentiality of all identifying information about survey respondents and their housing units. Prior to the survey, local households selected in the nationwide sample receive a letter from Census Bureau Director Louis Kincannon. In the letter, it states that residents will be interviewed by a field representative carrying a photo identification card. Besides visiting occupied housing units, the field representatives obtain data on unoccupied units from landlords, rental agents or neighbors.

Joint HUD-Census Bureau reports on the survey’s findings for the United States and regions are issued about 10 months after the interviews are completed.

Data in the reports answer such questions as:

How many people find it difficult to purchase affordable housing?

What kinds of problems and situations do people have with their homes and neighborhoods that affect their living environment?

How well is rent control working?

What type of fuel do people use to heat their homes?

Why do people move to other housing?

How much time does it take people to travel to work, and what means of transportation do they use?


The AHS provides analysts in government and business with up-to-date housing statistics — those vital for planning purposes, decision-making, market research and various kinds of program development.


Ref: CB05-R.49


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Tuesday, April 19, 2005

One-Size-Fits-All Food Pyramid Replaced By Government

The government today replaced its one-size-fits-all food pyramid in favor of 12 different triangle-shaped guides, each geared to people's differing lifestyles and nutritional needs.

Inside the familiar pyramid shape, rainbow-colored bands representing different food groups run vertically from the tip to the base. The old pyramid's sections ran horizontally. On the side are stairs with a figure stepping up the triangle representing exercise.

Go the the goverment's "My Pryamid" website for more information and resource tools to help you better understand and apply the information to your own personal requirements. Also has links for professionals.

Link to government's food groups site: http://www.mypyramid.gov/



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Monday, April 18, 2005

Tax Information for First-Time Homeowners (IRS Publication 530)

Click on following link: IRS Publication 530 - Tax Information for First-Time Homeowners , for online IRS information covering what you can/cannot deduct, mortgage interest credit, basis, keeping records and where to get tax help.



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Pre-Qualifying vs. Pre-Approval

What Is the Difference Between Pre-qualified and Pre-approved?

According to generally accepted industry definitions, a pre-qualification letter is simply a cursory review of your financial situation while a pre-approval letter shows that the lender has made a thorough analysis of your income, assets and credit and has pre-qualified you for a specified loan amount. The pre-qualification process is quicker than the pre-approval process and is often the first step in getting a pre-approval, as it can be issued while information and documentation is being submitted and verified for the pre-approval.

A pre-qualification is normally issued by a loan officer, who, after interviewing you (often informally over the phone) and checking your credit rating, determines the estimated dollar value of a loan for which you can be approved. However, loan officers do not make the final approval, so a pre-qualification is not a commitment to lend, it's just an opinion, since the lender does not verify any information and is not bound to make a loan when you are ready to buy. There is no guarantee you will qualify for the amount you for which have been pre-qualified. After the loan officer determines that you pre-qualify, he/she then issues you a pre-qualification letter. This pre-qualification letter is used when you are making an offer on a property. The pre-qualification letter indicates to the seller that you are qualified to purchase the property on which you are making an offer based on information you provided the lender and subject to verification.

Pre-approval is a more formal step above pre-qualification. Pre-approval is based on documented and verified information and involves verifying your credit, down payment, employment history, your assets and liabilities, cash on hand, etc. Your loan application is submitted to an underwriter and a decision is made regarding your loan application. If your loan is pre-approved, you are then issued a pre-approval certificate. Getting your loan pre-approved allows you to close very quickly when you do find a property. A pre-approval can help you negotiate a better price with the seller, since being pre-approved is very close to having cash in the bank to pay for the property!

Why pre-qualify? Because you'll have to make a loan application sooner or later, unless you plan to pay cash, and pre-qualifying is just taking care of one step of that process. Pre-qualifying speeds up the mortgage process for you, since it takes time to run reports and verify information for the pre-approval. You also save time by only looking at the homes that you are estimated to be able to afford while you wait for the pre-approval.

Why get a pre-approval? A pre-approval from your lender shows that you have a solid credit history and that you are qualified for a mortgage loan of a specified size. In a competitive market, a pre-approval letter can provide greater negotiating clout with the seller, as well as provide assurance that your offer will have priority above those who are not pre-approved. The greatest benefit to having a pre-approval letter is that it takes the stress out of shopping for a property. You won’t be disappointed by choosing a home and finding out later that a bank won't finance your decision. You'll be able to concentrate upon finding your dream property, without the worry of wondering if you've met the lender's financial requirements.

Note: The above discussion is based on the generally accepted industry definitions of "pre-qualification" and "pre-approval. However, in actual use, the definitions of each term are somewhat flexible -- the meaning of "pre-approval" and "pre-qualification" varies from place to place, lender to lender, and who you ask. Neither a "pre-approval" nor a "pre-qualification" are seen as absolute loan commitments. A final approval requires a satisfactory appraisal and title review and no change in financial condition.

Getting pre-qualified and/or pre-approved by a reputable mortgage company is the first major step in buying a property, and should be done before you actually start your property search, as it will tell (or confirm to) you what price range in which to be looking for property.



What Information Will Be Needed For the Pre-Approval Process?

Generally, the lender will want you to complete a standard residential loan application or, you just may be asked to provide the following documentation. Also, the lender will order a credit report to determine if there are any unusual or derogatory items in your credit history which may require additional explanation. The following document items may be needed from you in order to complete the Pre-Approval Process:


  • Previous two year's history of your residence (rental history and letter from landlord, if renter), and employers & income sources, and copies of W2 forms.

  • Copies of the most recent three month's bank statements, verification of stocks & bonds, and market value of any other real estate owned.

  • Additional documentation may be required if any discrepancies are identified during this process.

When the time comes to negotiate for the home of your choice, we (as your agent) will need a copy of your lender provided pre-approval certificate.

Sources: U of Cal. Office of President; The (Re)Finance Center


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My Top 10 List of Radio Programs Broadcasted Regularly On Local Public Radio

Call letters of local station broadcasting program, with link to station's Programming Guide and Internet Webcasting access in "(...)"

Local Area: Delaware Valley / South Jersey

1. Prairie Home Companion with Garrison Keillor (WHYY) - There is no other like it. (Click here to read my comments in a previous blog entry.) Catch it while you still can.

2. Car Talk (WHYY) - Talk show by two brothers answering car questions called in by listeners - hilarious banter and even useful information dispensed.

3. Fresh Air with Terry Gross (WHYY, which is also the producer) - Interviewer par excellance of famous and interesting guests -- this is the way it's suppose to be done.

4. Marketplace (WHYY) - Daily radio magazine of business and economics based look at companies, products and events that effect our lives, sometimes in a fun, but always interesting, way.

5. Whad' Ya Know? with Michael Feldman (WHYY) - Recorded live and usually on the road. It's a cross between "You Bet Your Life" and live call-in and audience participation shows, plus a band and special guests (just listen to it). Informative, entertaining and always humorous (and remember the answer is: "Not Much!").

6. Kids Corner with Kathy O'Connell (WXPN) - Fun music and talk show just for kids.

7. The Folk Show with Gene Shay (WXPN) - Keeping the tradition alive with Folk, Americana music - old and new.

8. You Bet Your Garden with Mike McGrath (WHYY) - Offers "fiercely organic advice to gardeners" answering call-in listeners and e-mail, along with guest garden experts. "Soothing" is NOT a word that can be used to describe him or his voice and delivery, but "knowledgeable", "informative" and "entertaining" ARE appropriate descriptions.

9. The Thistle & Shamrock (WHYY) - Celtic based music and warm conversations with performers of Celtic music.

10. Sleepy Hollow (WXPN) - Jazz, folk, instrumental, and contemporary acoustic music served in a great atmosphere.


See also my blog articles index, specifically Fun/Relaxation and Music sections for more online programs resources.



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Sunday, April 17, 2005

Workshop On Apartment Development Finance

Addressing Info Overload for Apt. Developers

(April 15, 2005) -- With the apartment market strengthening, players of all types and sizes are getting into project development. One thing that's helping them -- but also leading to information overload -- is the huge array of financing techniques lenders and equity providers are offering. This information overload has Andre Shashaty concerned, but he thinks he has a way to solve the problem.

Shashaty, a housing journalist who's been publishing his own magazines on apartment development finance for some 20 years, has launched a two-day workshop featuring big names in apartment finance and development to talk about their latest techniques for making projects pencil out.

Among the techniques the developers and finance providers will be talking about: defeasance and mezzanine finacing, floating rate debt, and conduit financing. The developers and finance providers are expected to hit all the hot topics: unlocking trapped equity, financing condo conversion and construction, finding and evaluating construction and bridge loans, working with equity syndicators, planning an exit strategy, avoiding deal killers, and staying ahead of regulatory changes.

"What will happen to your deals as underwriting tightens and interest rates rise?" says Shashaty. "It's all about making sense of the enormous financing choices that are out there today."

There's more information on the workshop, at the Fairmont Hotel in New Orleans, May 15-17,
online.

Source: REALTOR Magazine Online




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Prime and Cap Rates - Outracing the Storm

Do rising interest rates mean falling property values?

See the
Realtor's Commercial Alliance (RCA) Report for an informative discussion on changing Prime Lending Interest Rates and their relation to possible changes in standard Cap Rates (and hence property values), with comparative historical rate graphs.

Also, see the DataPoints section for summary of the 10-year expected return on real estate and other summary statistics.


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Copyright 2005 by Timon, Inc. All Rights Reserved.

Saturday, April 16, 2005

Human Resources Toolkit Available From NAR

The National Association of Realtors (NAR) have a section of their publicly accessible web site which is entitled: "Human Resources Toolkit".

"This online resource guide was designed by NAR's Human Resources Department to provide information and guidance on Employee Relations, Recruiting and Legal Issues."

While specifically designed for the NAR and its members, much of the site's resources are general in nature and will apply to any business, large or small. Useful for executive management and for small business owners as guidelines and suggestions in establishing and improving their own human resource policies and procedures.

View online or download their "Human Resources Audit Form" in PDF format. Take advantage of this resource, including tips, guides (such as "Developing a Policy Manual"), and legal issues you need to be aware of and guard against.

The direct link to the Human Resources Toolkit home page:
http://realtor.org/aehr.nsf



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Miscellaneous Music Links

Music Theory
Music Theory, modes, chords, and contemporary harmony. In addition there are dozens of midi files, Music Calculators and a interactive online index of all the popularly used scales in western harmony. There is a History of Jazz Bass in America section where you can view articles about influential Bass players like Jimmy Blanton, Oscar Pettiford and Charles Mingus. Recent additions nclude the Virtual Piano and The Virtual Fake Books.

SCALCULATOR: Online Mode, Scale and Arpeggio Calculator
Includes: ...Scale (C, G, D, A, E, B etc.), Mode( Dorian, Phyrgian, Lydian, Locrian, Harmonic Minor, Blues Scale, Altered, Bebop Dominant, Bebop Half-Diminished, Blues II, Diminished, Dorian Sharp 4th, Egyptian, Eskimo Hexatonic 1, Ethiopian. etc.), Harmonize, Arpeggio, Chord (majb5, maj7, min/maj9, add9, maj13, etc.), Instrument
Setup, Tuning, Instrument (Piano, Organ, Nylon Guitar, Acoustic Guitar, Muted Electric Guitar, Distorted Guitar, etc.), etc..."

Music Dictionary and Encyclopedia
Eric's Treasure Trove of Music - Chords, Notes, Intervals, Musical Instruments, Musical Notation, Scales and Modes, Time Signatures. (Also, Astronomy, Chemistry, Physics, Scientific Biography)

Medieval Music Glossary
Part of the Online Reference Book for Medieval Studies.

Online Music Theory Resources
Online resources provided by the Indiana University Department of Music Theory. See also their "
Rhythm and Music in Tonal Music" section as well as their Links page for additional professional and scholastic organizations and publications.

Music Charts - Worldwide
Largest collection of Top 10; Top 20; Top 40; Top 100 - Singles & Albums - Charts on the Net. Including Radio Charts, Online Charts, Personal Charts, DJ's Charts and a large selection of other charts. Updated weekly.

Internet Underground Music Archives
Independent artist promotion site. Bands, Charts, MP3's, Radio stations, all genre's.

The Ultimate Band List
Every Record Group, Recording Studio, and Record Store on the Internet.

Austin City Limits
Austin City Limits, a PBS concert series, presents the best of America's music from country, blues and folk to rock 'n' roll, bluegrass and zydeco. Features broadcast dates, short video clips and artist interview transcripts.

Eb+Flo
Eb+Flo Online contains music hand picked from a community of artists, producers, musicians, and songwriters. These guys know their music and want to share their rare finds and favorite albums with you. The selection at Eb+Flo is small and eclectic, and you can be sure every album here contains music with substance and artistic integrity. New and unique albums are being added constantly, so bookmark Eb+Flo Online and check back often. If it’s on this site, you need to hear it.

Piano Tuning
Piano tuning publications (including eBooks) resources, including tools, parts, equipment and supplies for purchase form Affleck Piano Tuning.




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Copyright 2005 by Timon, Inc. All Rights Reserved.

NAR Backs Real Estate Provisions in Bankruptcy Reform Bill

WASHINGTON (April 14, 2005) – The National Association of Realtors (NAR) applauded the U.S. House of Representatives today for passing four real estate provisions as part of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, S. 256. The bankruptcy reform bill passed the Senate last month and now heads to President Bush, who has promised to sign it.

The legislation contains four NAR-supported provisions. First, it provides a 90-day stay from creditors for certain commercial properties regardless of value. Second, the bill closes the loophole that allows residential tenants to avoid or delay eviction by declaring bankruptcy. This provision maintains the protections currently enjoyed by tenants under state landlord-tenant laws. Third, the bankruptcy reform bill requires homeowners or condo association fees to be repaid.

Finally, the bill protects shopping center owners by giving tenants who declare bankruptcy 120 days to assume or reject a lease. This is double the initial time permitted under current law, which gives tenants who declare bankruptcy 60 days to assume or reject a lease. However, courts have routinely extended this time for many months or even years.


“NAR supports several real estate provisions in the bankruptcy reform bill that will better position real estate assets when tenants or owners file for bankruptcy,” said NAR President Al Mansell.

House passage of bankruptcy legislation today would strike a fair balance between the rights of tenants and property owners, and also provide sufficient safeguards for home owners to protect their property in the event of a bankruptcy filing, according to the National Association of Home Builders (NAHB).

Noting that the Senate approved the same measure last month, NAHB President David Wilson, a custom home builder from Ketchum, Idaho, welcomed congressional approval of S. 256, the “Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.”

“The bill contains two beneficial provisions for apartment owners and home owners,” said Wilson. “First, it would stop an abusive practice under current law in which delinquent tenants facing eviction can file for bankruptcy, triggering an automatic stay that requires the property owner to stop all eviction proceedings – even if the tenant is damaging property or involved in illegal activity. And second, it recognizes that states should have the ability to set homestead exemptions at levels they deem appropriate.”

Under current law, a tenant is able to exploit the protection of the U.S. Bankruptcy Code’s “automatic stay” provision to forestall an eviction, and could remain in a rental property for months without paying rent until a bankruptcy judge lifts the stay.

“These tenants drive up housing costs for the vast majority of residents who pay their rents on time,” said Wilson. “At the same time, they are also threatening the economic viability of rental properties, particularly subsidized housing properties that have thin operating margins.”

The legislation approved today by the House and to be signed into law shortly by President Bush will remedy this abusive practice. It establishes a clear procedure for the speedy resolution in federal bankruptcy court of cases in which a tenant has defaulted on the lease agreement for failure to pay and then files for bankruptcy. It also provides debtors with due process protection against unfair evictions.

S. 256 further stipulates that home owners who filed for bankruptcy within 40 months of buying a home would be able to protect no more than $125,000 of home equity from creditors, and after 40 months existing state homestead limits would apply.

“This provision represents a balanced approach. It gives each state sufficient leeway to set their own threshold and prevents a debtor from shielding assets by purchasing a home in a state with an unlimited homestead exemption,” said Wilson


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Friday, April 15, 2005

NJ Fire Extinguisher Legislation Signed Into Law

On April 14, 2005, Acting Governor Codey signed into law legislation requiring that upon the sale, lease or transfer of a building with three or fewer dwelling units, each unit be equipped with at least one portable fire extinguisher. NJAR was able to secure an amendment to the legislation to exclude all seasonal rental units. The bill further states that the extinguisher is to be provided at the expense of the seller, landlord or transferor of the property. The law defines portable fire extinguisher as “an operable portable device, carried and operated by hand, containing an extinguishing agent that can be expelled under pressure for the purpose of suppressing or extinguishing fire, and which is: (1) rated for residential use consisting of an ABC type; (2) no larger than a 10 pound rated extinguisher; and (3) mounted within 10 feet of the kitchen area, unless otherwise permitted by the enforcing agency.”

Although the legislation takes effect on November 1, 2005, it provides that the Department of Community Affairs will promulgate rules and regulations to further clarify certain aspects of the statute prior to enforcement.

For full text of the bill Click here.

Source: NJAR


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Thursday, April 14, 2005

Nation's Fastest-Growing County

Source: U.S. Census Bureau Press Release (4/14/05)

Flagler, Fla., located along the Atlantic coast between Daytona Beach and Jacksonville, was the nation’s fastest-growing county between July 1, 2003, and July 1, 2004, experiencing a 10.1 percent population increase, according to estimates released today by the U.S. Census Bureau. Florida led all states with 14 of the nation’s 100 fastest-growing counties.

According to the estimates, St. Johns, Fla., which borders Flagler to the north, was the ninth fastest-growing county between 2003 and 2004, with a population increase of 6.7 percent. Half of the remaining top-10 fastest-growing counties were located in either the South or West: Loudoun, Va., near Washington, D.C., ranked third in growth with a rate of 8.1 percent; Lampasas, Texas (north of Austin), sixth with 7.3 percent; Lyon, Nev. (near Carson City), seventh at 7.2 percent; and Camden, N.C. (south of Norfolk, Va.), eighth at 7.2 percent. (See Table 1.
Excel PDF)

Rounding out the top-10 fastest-growing counties between July 2003 and July 2004 were four counties in the Midwest: Kendall, Ill. (in the Chicago area), second at 8.3 percent; Hanson, S.D., and Lincoln, S.D. (both near Sioux Falls), fourth and fifth, respectively, at 7.9 percent and 7.5 percent; and Dallas, Iowa (west of Des Moines), 10th at 6.6 percent.

Los Angeles, Calif., continued to be the most populous county in the nation, with 9.9 million residents on July 1, 2004. The largest numerical gainer over the 2003-2004 period was Maricopa (Phoenix), Ariz., which added 112,000 residents. (See Table 2.
Excel PDF) These two counties and Harris (Houston), Texas, were the only counties that ranked in the top-10 in both categories — total population and numerical increase.

Other highlights:

Of the 100 fastest-growing counties between 2003 and 2004, 60 were located in the South, 23 in the West and 17 in the Midwest. None were in the Northeast.

Joining Florida in having at least 10 counties among the 100 fastest-growing were Georgia and Texas (12 each) and Virginia (10).


Twenty-one states did not have any counties among the 100 fastest-growing.


California and Texas each had three counties among the top-10 numerical gainers. Only one county on this list — Will, Ill., near Chicago — was located outside the South or West.


Of the 100 most populous counties in 2004, 32 were located in the South, 27 in the Northeast, 25 in the West and 16 in the Midwest.


California (15) had the most counties among the 100 most populous, followed by New York (nine), Texas (eight) and Florida (seven).


Twenty states did not have any counties among the 100 most populous. [New Jersey had 5 counties, all in the northern half of the state.]

The Census Bureau’s Internet tables show July 1 population estimates for 2000 through 2004, as well as the April 1, 2000, census counts. Also included are rankings and estimates of components of population change (births, deaths, net internal migration and net international migration) for all counties.

- X -

The new numbers, which use administrative data and estimates for births, deaths and net migration, are based on Census 2000 population counts updated to reflect any official census corrections.



Direct link to Population Estimates data page: http://www.census.gov/popest/estimates.php




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