2007 Hurricane Season - Interesting Facts From The Census Bureau

The north Atlantic hurricane season begins June 1 and lasts through November. The U.S. Census Bureau produces timely local data that are critical to emergency planning, preparedness and recovery efforts. This edition of Facts for Features spotlights the number of people living in areas that could be most affected by these acts of nature.

Click here for the Cenus Bureau's "Facts for Features and Special Editions" statistics relating to the hurrican season.



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Copyright 2007 by Lawrence Yerkes. All Rights Reserved.

Existing Home Sales Effected By Psychology, Interest Rates and Doubling-Up

WASHINGTON - Existing-home sales were essentially unchanged in May, according to the National Association of Realtors®(NAR).

Total existing-home sales – including single-family, townhomes, condominiums and co-ops – eased by 0.3 percent to a seasonally adjusted annual rate1 of 5.99 million units in May from an upwardly revised pace of 6.01 million in April, and are 10.3 percent below the 6.68 million-unit level in May 2006.

Lawrence Yun, NAR senior economist, said the market softness is understandable. “I think psychological factors are currently the biggest drag on the housing market, in addition to a disruption from tighter credit for subprime borrowers,” he said. “Household formation has slowed dramatically since late 2006, implying that many people are doubling-up – they’re adding roommates or moving in with parents.

“The market is underperforming when you consider positive fundamentals such as the strength in job creation, economic growth, favorable mortgage interest rates and flat home prices. It appears some buyers are simply waiting for more signs of stability before they get serious about getting into the market.”

The national median existing-home price2 for all housing types was $223,700 in May, which is 2.1 percent below May 2006 when the median was $228,500. The median is a typical market price where half of the homes sold for more and half sold for less, but there is a temporary downward distortion in the current national comparison because sales have shifted away from many high-cost markets in the past year.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 6.26 percent in May, up from 6.18 percent in April; the rate was 6.60 percent in May 2006.

NAR President Pat V. Combs, from Grand Rapids, Mich., and vice president of Coldwell Banker-AJS-Schmidt, said higher inventories are helping to offset an affordability impact from higher mortgage interest rates. “Although mortgage interest rates are trending up, they are historically favorable,” she said. “The good news is buyers have more negotiating power with a fairly large supply of homes available in much of the country. Buyers who’ve been on the sidelines may want to take a closer look at current conditions in their area – if they wait for sales to rise, their choices and negotiating position won’t be as good as they are now.”

Total housing inventory rose 5.0 percent at the end of May to 4.43 million existing homes available for sale, which represents an 8.9-month supply at the current sales pace, up from an 8.4-month supply in April.

Single-family home sales slipped 0.8 percent to a seasonally adjusted annual rate of 5.20 million in May from an upwardly revised 5.24 million in April, and are 10.8 percent lower than a 5.83 million-unit pace a year ago. The median existing single-family home price was $223,000 in May, which is 2.4 percent lower than May 2006.

Existing condominium and co-op sales rose 2.6 percent to a seasonally adjusted annual rate of 790,000 units in May from 770,000 in April, but are 6.7 percent below the 847,000-unit level in May 2006. The median existing condo price3 was $228,200 in May, down 0.4 percent from a year ago.

Regionally, existing-home sales in the Northeast rose 5.8 percent to a level of 1.10 million in May, but are 3.5 percent lower than May 2006. The median existing-home price in the Northeast was $282,700, which is 0.5 percent higher than a year ago.


The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.

# # #

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

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.

(2)The only valid comparisons for median prices are with the same period a year earlier due to the seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the geographic composition of sales can distort median price data.

Year-ago median and mean prices sometimes are revised in an automated process if more data is received than was originally reported.

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

Existing-home sales for June will be released July 25. The next Pending Home Sales Index will be on July 3 and the forecast will be revised July 11.


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Copyright 2007 by Lawrence Yerkes. All Rights Reserved.

Disabled Veterans Supported by RE/MAX

The founder of RE/MAX, Dave Liniger announced that the company will support the Sentinels of Freedom Foundation by providing funding for a four-year "scholarship" program that helps disabled veterans obtain housing, education, employment and transportation.

The program's objectives, as summarized by Liniger, it to "welcome these heroes home, and provide the most severely wounded with a comfortable transition period back into civilian life."

The Sentinels of Freedom Foundation was founded by a group of community leaders in San Ramon and Danville, California. Their leader, a father of three Army Rangers, was inspired to help wounded soldiers after one of his sons was injured in Iraq.

For more information visit the Sentinels of Freedom Foundation web site.

Source: RE/MAX International

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Copyright 2007 by Lawrence Yerkes. All Rights Reserved.

Federal Reserve Beige Book June 2007 Report

Reports from the twelve Federal Reserve Banks indicated that economic activity continued to expand from mid-April through May. Seven banks described growth in their Districts as modest or moderate: Cleveland, Atlanta, Chicago, St. Louis, Kansas City, New York, and San Francisco. Dallas reported growth as moderately strong, and Minneapolis said the District's economy edged up. Philadelphia reported that growth was somewhat faster than in recent months, and Richmond said growth picked up a bit. Boston characterized reports from its contacts as generally positive.

Consumer spending and retail sales were generally up in late April and May, with a number of Districts reporting that luxury items were selling better than lower-end merchandise. On net, there was little change in auto sales across the Districts, and dealers are about evenly split on whether there will be any pickup in sales over the summer. Travel and tourism remained healthy despite the recent rise in gas prices, although the rise in prices remains a concern for the summer. Except for trucking, reports from the service industries were generally positive. Declines were widely reported in the trucking industry, however. Manufacturing activity was up in a majority of Districts. There was weakness among manufacturers producing for the residential construction industry but strength among machinery and equipment manufacturers in several Districts.

There was continuing weakness in residential real estate and construction but increasing strength in the commercial real estate sector, including both office and industrial space. Half the District banks reported little or no change in overall loan demand, with strength in commercial lending and weakness in residential mortgages and consumer lending. In the agricultural sector, crop conditions improved and were generally described as good. An early spring frost harmed some winter wheat, and drought conditions caused problems in the Southeast and the far West. Oil and gas exploration increased in recent months, but coal production was down.

Hiring activity picked up in late April through May, especially for workers with specialized skills. But most Districts reported that overall wage pressures do not seem to have increased. There have been significant price increases for energy-related products and selected raw materials, but the prices of some raw materials have remained stable.

In the Philadelphia (Third District) region, they experienced improved economic conditions in May, and the pace of growth was somewhat faster than in recent months. Manufacturers, on balance, reported increases in shipments and new orders, although activity among manufacturers dependent on the residential construction industry was slower. Retailers experienced different conditions depending on the market segment they serve. Sales of high-end goods increased significantly, while sales of other merchandise remained flat or increased only marginally. Auto sales have increased over the past few months, but they remain below averages in recent years. Bank lending rose at a moderate pace, with commercial and industrial lending showing the most strength. Activity in the commercial real estate sector has been relatively strong, but there has been no pickup in the residential sector. Firms commenting on labor costs generally reported steadily increasing wages, but there has been more cost pressure from nonwage benefits. Firms also reported significant price increases for raw materials and energy.

Third District firms generally see business activity expanding in the second half of 2007. Manufacturers plan increased capital spending and expect more demand for their products in the months ahead. Retailers expect sales to continue to increase at their current rate. Auto dealers do not expect much change in the pace of car sales. Bankers anticipate a continuation of the steady increase in loan volume.

Source Beige Book


Click here for the Federal Reserve June 2007 Beige Book [Beige Book Archives]


See related blog articles:
Federal Reserve Beige Book For Economic Conditions (What is the "Beige Book"?)
The Federal Reserve - Making Sense In Plain English

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Copyright 2007 by Lawrence Yerkes. All Rights Reserved.

Attracting Fixer-Upper Buyers -- Best Ways

"Buyers tend to want listings that are in move-in condition. For that reason, sellers often put a lot of time and money into prepping their homes for market to realize the largest profit possible from the sale. But, is it worthwhile to fix a property up before selling if it is in a dismal state?

It's usually worthwhile to fix up a needy property in a good location that has great potential and that can be improved considerably with cosmetic improvements. The reason why it makes sense to go through the effort is that most people don't have good imaginations and can't envision what a house might look like with work done to it. They simply relate to what they see. For example..."

Click here for full article on my RE/MAX web site



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Copyright 2007 by Lawrence Yerkes. All Rights Reserved.

FRB: Encourging Responsible Mortagage Lending

A public hearing by the Board of Governors of the Federal Reserve System is being held today to help determine what steps the Board should take to curb abuse in the home mortgage market, especially the sub-prime lenders, without hurting the incentives in place to encourage responsible lenders to provide credit to borrowers.

Click here for the published opening remarks of the meeting.


Previous press release announcing meeting

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ULI: Lack of Affordable Housing Near Jobs A Problem For Employers and Employees

New Survey from ULI Looks at Impact of Commuting

WASHINGTON — Concern is apparent within the business community — particularly among larger employers — about the lack of affordable housing for employees, with companies reporting the shortage as being problematic in hiring and retaining entry- and mid-level workers, according to a new survey released by the Urban Land Institute (ULI). The same survey showed interest by moderate-income workers in moving closer to work if affordable housing were available.

The survey, conducted between April 26, 2007 and May 1, 2007 by Harris Interactive®, was taken to gauge perceptions by employers and commuters regarding the impact of long distances between housing and jobs on business operations and workers’ quality of life. The employer portion polled employers from three groups—those with less than 50 employees; those with 50 to 100 employees; and those with more than 100. More than 300 companies from across the United States responded. The largest companies consistently reported the greatest awareness of problems resulting from long commutes and an inadequate supply of affordable housing—ranging from high employee stress to high employee turnover. Overall, companies in the West were the most likely to acknowledge insufficient affordable housing as being a problem.

The consumer portion, covering more than 1,200 commuters nationwide, included those with commutes of less than 30 minutes, 30 to 60 minutes, 60 to 90 minutes and more than 90 minutes. On the whole, the survey found that the majority of employees will tolerate living farther away from work if housing is more affordable; but there were noticeable differences in opinion when measured by commute time, income and age. Those with the longest commutes were the most willing to change jobs for a shorter commute, and the most apt to move closer to their jobs if more affordable housing options were available. Those with incomes of less than $50,000—widely considered the “mainstream” workforce—were significantly more likely to move closer to work if affordable housing were available than those with higher incomes. When measured by age, those aged 18-34 were the most likely to uproot and change jobs, likely reflecting fewer family obligations and fewer ties to their existing neighborhoods.

ULI Senior Resident Fellow William H. Hudnut, III, discussed the survey results during a presentation June 2, 2007 at the National Association of Real Estate Editors annual real estate conference, held this year in Philadelphia. The responses, he said, indicate that larger employers understand the reality of moderately priced housing being scattered far from employment centers. And, while many consumers continue to equate success with being able to afford a larger home in outlying areas, he said the responses from moderate-income and younger workers show they are starting to “feel the pinch” of money and time spent commuting.

“What we’re seeing from employers and lower to moderate-income workers signals a need for more housing to be built closer to jobs,” Hudnut said.

Some highlights from the employer survey:

Fifty-five percent of larger companies (those with 100-plus employees) reported a lack of affordable housing near their location.

Sixty-seven percent of the larger companies that acknowledged a lack of affordable housing believe that it is having a negative impact on retaining qualified entry-level and mid-level employees.

Fifty-eight percent of the larger companies that acknowledged a lack of affordable housing reported having lost employees at least in part to long commute times.

Sixty-nine percent of the larger companies believe a long commute increases employee stress; 63 percent believe it triggers negative emotion among employees; 48 percent said it causes more absenteeism; and 46 percent said it contributes to employee turnover/attrition.

Thirty-six percent of the larger companies believe it is important to be actively involved in providing employee access to affordable housing.

Awareness among larger companies regarding corporate and government housing programs remains relatively low (25 percent were aware of corporate programs and 34 percent were aware of government programs); but 42 percent of larger companies said they would participate in a government program.

Forty-five percent of the larger companies offer flextime to reduce commuting time; 21 percent offer telecommuting.

Some highlights from the consumer survey:

Sixty-seven percent of those with annual household incomes of less than $50,000 would be at least somewhat likely to move closer to work if more affordable housing were available.

Sixty-four percent of those earning less than $50,000 would be at least somewhat likely to make a lateral employment move in exchange for a shorter commute; compared to 60 percent earning more than $50,000.

Seventy-six percent of those aged 18-34 would be at least somewhat likely to make a lateral employment move in exchange for a shorter commute; and 76 percent in that age group would be at least somewhat likely to move closer to work if affordable housing were available.

Fifty-seven percent of all commuters surveyed said they would be at least somewhat likely to move closer to work if affordable housing were available.

Eighty-five percent of respondents who commute more than 90 minutes daily said they would be at least somewhat likely to make a lateral job switch to cut their commute in half.

Forty-seven percent who work in suburbs prefer to live closer to work even though it may mean higher housing prices and less disposable income; while 53 percent of suburban workers prefer to live in an area with affordable housing opportunities and more disposable income, even if it means living further away from work and having a longer commute.

One notable finding in the consumer survey suggests “a lingering gap between perception and reality,” Hudnut noted. Of all consumer respondents, 42 percent said they would prefer to live closer to work to shorten their commutes, even if it meant higher housing prices. Fifty-eight percent said they would prefer to live in an area with more affordable housing, even it meant a longer commute. “Many consumers who don’t perceive living closer to work as desirable are likely not factoring in transportation costs as a rising expense, and are likely not aware that desirable housing close to jobs is even an option. The reality is that moderate-income housing can be developed near employment centers in a way that provides a high quality of life, offering proximity to both amenities and work,” he said.

Moreover, Hudnut said, the far-flung living environment many believe to be preferable is not sustainable, in terms of conserving land or energy. “Ever-increasing commutes are taking a heavy toll on our urban areas, from a social, economic, and environmental aspect. Something’s got to give,” he said.

To help raise awareness of the need for more housing affordable to moderate-income workers, ULI has established the ULI Terwilliger Center for Workforce Housing, funded with a $5 million commitment from former ULI Chairman J. Ronald Terwilliger, chairman and chief executive officer of Atlanta-based Trammell Crow Residential.

Plans call for the ULI Terwilliger Center to be based in Washington, D.C. Its staff members will work with ULI district councils, housing-related organizations, and various public- and private-sector representatives in several urban areas to create models of mixed-income workforce housing design, development and financing that can be applied to other cities. Initially, the center will focus on three markets – Atlanta, Washington, D.C., and Southeast Florida. In each, the center will develop a plan to increase the production of mixed-income housing over a specified time period; to expand available project financing where necessary; and to support developers in completing projects. The goal is to produce at least 3,500 units of new workforce housing in the three markets within five years.

As part of its overall program of work, the center will identify barriers to workforce housing production (such as inflexible zoning and building codes) and work to eliminate those barriers by raising awareness of the affordability gap and by advocating changes in public policy. Hudnut noted that the center will advocate greater use of inclusionary zoning, which offers development incentives such as density bonuses in exchange for the provision of a certain percentage of below-market rate units. “Inclusionary zoning is one of the best tools to get housing built that people can afford, and it does this in a mixed-income housing context,” Hudnut said. “Mixed-income is the only effective way to build affordable housing. Housing that is segregated by income is not conducive to a diverse, thriving community. A truly sustainable community is one that provides housing choices. ”

To educate the public and help change public policy, the center will partner with local, regional and national organizations, including chambers of commerce, employer organizations, home builder organizations and housing advocacy groups. The center will publish best practices, organize conferences and provide competitions to recognize individuals and companies demonstrating excellence in the area of mixed-income housing production.

The workforce housing provided through the center will be oriented toward people typically making between 60 percent and 120 percent of the median income for the targeted market, and it will be mixed with housing offered at market rates. Those income boundaries will be kept flexible, however, to reflect variations of salaries and housing costs in individual markets. An emphasis will be placed on designing and building housing in ways that encourage long-term affordability.

About the Urban Land Institute
The Urban Land Institute (www.uli.org) is a nonprofit education and research institute supported by its members. Its mission is to provide leadership in the responsible use of land and in creating and sustaining thriving communities worldwide. Established in 1936, the Institute has more than 36,000 members representing all aspects of land use and development disciplines.

About the Company Survey
The company online survey was conducted by Harris Interactive on behalf of the Urban Land Institute among 327 U.S. companies whose primarily place of business is an office building. Respondents were required to be directly involved with personnel decisions at the company. The survey was conducted between April 26 and May 1, 2007. The data are un-weighted and quotas were set to include 112 U.S. companies that have 5-49 employees, 105 U.S. companies that have 50-99 employees, and 110 U.S. companies that 100+ employees.

With a pure probability sample of 327 adults one could say with a ninety-five percent probability that the overall results have a sampling error of +/- 5.4 percentage points. Sampling error for data based on subsamples would be higher and would vary. However that does not take other sources of error into account. This online survey is not based on a probability sample and therefore no theoretical sampling error can be calculated.

About the Consumer Survey
This survey was conducted online by Harris Interactive on behalf of the Urban Land Institute among 2,261 adults (aged 18 and over), 1,215 of whom are employees who commute to an office or place of work three or more days a week. The survey was fielded within the United States between April 27 and May 1, 2007. Figures for region, age within gender, education, household income and race/ethnicity were weighted where necessary to bring them in line with their actual proportions in the population. Propensity score weighting was also used to adjust for respondents’ propensity to be online.

With a pure probability sample of 2,261 adults one could say with a ninety-five percent probability that the overall results have a sampling error of +/- 3 percentage points. Sampling error for data based on subsamples would be higher and would vary. However that does not take other sources of error into account. This online survey is not based on a probability sample and therefore no theoretical sampling error can be calculated.

About Harris Interactive
Harris Interactive is the 12th largest and fastest-growing market research firm in the world. The company provides innovative research, insights and strategic advice to help its clients make more confident decisions which lead to measurable and enduring improvements in performance. Harris Interactive is widely known for The Harris Poll, one of the longest running, independent opinion polls and for pioneering online market research methods. The company has built what it believes to be the world’s largest panel of survey respondents, the Harris Poll Online. Harris Interactive serves clients worldwide through its United States, Europe and Asia offices, its wholly-owned subsidiaries Novatris in France and MediaTransfer AG in Germany, and through a global network of independent market research firms. More information about Harris Interactive may be obtained at www.harrisinteractive.com.

See details of the survey here.



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Copyright 2007 by Lawrence Yerkes. All Rights Reserved.

HUD: America's First Efficient, Sustainable, Affordable Concept Home

Concept Home represents the New American Dream during National Homeownership Month

Omaha, NE -- The U.S. Department of Housing and Urban Development (HUD) recently announced the completion of America's first PATH Concept Home featuring more than 60 efficient, sustainable and flexible products and systems all in one affordable home.

"With the PATH Concept Home, HUD has created a blueprint for the future of the American Dream by using innovative housing technologies that support our goals of sustainability, efficiency and flexibility in an affordable home," said HUD Assistant Secretary Darlene F. Williams. "June is National Homeownership Month and we are excited to showcase a home that is affordable to purchase, maintain and renovate as families and their needs change over time."

The PATH program - the Partnership for Advancing Technology in Housing - is a public private partnership between the U.S. government and America's housing industry that works together to advance the use of technology in the housing infrastructure throughout the country.

Torti Gallas and Partners, an award-winning architecture firm, created the PATH Concept Home Omaha (Nebraska) design. It meets the requirements for Leadership in Energy and Environmental Design (LEED) for Homes, Environments For Living®, ENERGY STAR TM and National Association of Home Builders (NAHB) Green Building Guidelines. The Concept Home plans are available at www.pathnet.org.

"By using building techniques that create better homes faster, and applying cutting-edge technologies for sustainability and efficiency, I can do a better job of providing durable, comfortable and affordable homes," said Fernando Pages of Brighton Construction. "Plus, innovation and vision allow America's homebuilding industry to continually improve our building processes and quality."

The City of Omaha donated the site for the PATH Concept Home. The site, a corner lot nestled among new affordable homes and quaint historic bungalows, is convenient to both downtown Omaha and Creighton University. The neighborhood is also part of broad commercial and residential redevelopment efforts by the city.

"The Concept Home demonstrates how innovative building can create affordable homes," said Omaha Mayor Mike Fahey. "The city's many economic development efforts, from our downtown and riverfront redevelopment to projects strengthening our city's neighborhoods and small business districts, serve as an appropriate setting for the Concept Home, HUD's new American Dream."

The PATH Concept Home Omaha will remain open by appointment for public viewings during the month of June. Interested organizations should contact Matt Hawkins at Newport Partners LLC, (301) 889-0017.

Several leading manufacturers have generously supported the demonstration project including Masco Corporation and its subsidiaries, Behr, BrassCraft, Merillat, Milgard, Hansgrophe, Delta, Masco Contractor Services' Environments For Living program, DuPont ™ Building Innovations™, Millard Lumber, Weyerhaeuser, Follansbee, the Metal Roofing Alliance, Seisco, Panasonic, WindsorOne and Chief Architect.

HUD's next PATH Concept Home will be built in Charleston, South Carolina. Concept Home Charleston will continue to demonstrate construction efficiency, flexibility and sustainability while focusing on durability and the ability to withstand everything nature has to offer - like high winds from hurricanes, possible flooding, termites, and a climate with year-round humidity that can lead to moisture and mold problems. All of these challenges make it the perfect spot for the next Concept Home.

For additional information on the PATH program including the Concept Home plans, narrated videos showing key technologies during construction of the Concept Home, an interactive audio tour describing how the 60 innovative products and systems enhance sustainability, flexibility and construction efficiency, please visit www.pathnet.org/concepthome.

Source: HUD No. 07-082



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NJDEP: Notice of Regulation Proposals

The New Jersey Department of Environmental Protection (NJDEP) has a Rules & Regulations page where notices of all upcoming rules proposals are listed. For those concerned about environmental regulations and their impact (pro or con) on the environment and business, then you need to pay attention as there are many important proposals in development.

The proposed regulations are listed on the page along with corresponding:
Publication Date
Proposal Name
Close of Comment Period
Public Hearing Scheduled?
Document Links
Proposal Status

It is important for everyone to become informed about proposed regulations and provide input PRIOR to those regulations taking effect.

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FRB: Banking Agencies Issue Host State Loan-to-Deposit Ratios

The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency today issued the host state loan-to-deposit ratios that the banking agencies will use to determine compliance with section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994. These ratios update data released on June 13, 2006.

Source: FRB Press Release 6/12/2007


Click here for full news release, with downloadable loan-to-deposit ratios (by state)

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Commercial Market Offsetting Residential Market

Office, Industrial and Retail Development Contributes $498 Billion Annually to GDP

There's a safety net for the country's slowing housing market, after all. It's the commercial real estate market.

According to analysis sponsored by the National Association of Industrial and Office Properties (NAIOP) Research Foundation and recently reported, the thriving commercial development sector has buffered the slowdown in the residential sector.

Using 2005 data, the latest comprehensive data available, the study by Dr. Stephen S. Fuller, Director of the Center for Regional Analysis at George Mason University (CRA), determined that in 2005 commercial real estate spending added $498.4 billion to the Gross Domestic Product (GDP), which was $11.9 trillion that year. By comparison, the federal government contributed $498.8 billion to the 2005 GDP* (Ref: www.bea.gov). The basis of commercial real estate's on-going sustainability lies in its three phases of development:

* Soft costs (such as architects, engineering, marketing, legal, management), site development, and tenant improvements
* Hard costs (actual construction costs)
* Building operations (such as maintenance, repair, custodial services, utilities, and management)

Combined, these three phases represent commercial real estate development's enduring financial strength and compounded economic impact.

And more recently, according to Census Bureau data as of April, 2007, an increase in the "hard costs" of construction of 2.4% more than makes up for the 1% drop in commercial construction.


Click here for more information about the commercial real estate analysis report.



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Copyright 2007 by Lawrence Yerkes. All Rights Reserved.

Healthy Homes - Protect Your Children's Health

"Help Yourself to a Healthy Home" is a self-help booklet for parents and caregivers that provides information about housing-related environmental health issues, including asthma an allergies, lead, mold and moisture, carbon monoxide, indoor air quality, drinking water, hazardous household products, home safety and pesticides. (Source: hud.gov)

More Information . . .

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Copyright 2007 by Timon, Inc. All Rights Reserved.

Home Sales To Gradually Improve with Some Fluctuation

WASHINGTON - Home sales are projected to move in a relatively narrow range with a gradual upturn becoming more pronounced by the end of the year, according to the latest forecast (PDF 136k) by the National Association of Realtors®(NAR).

Lawrence Yun, NAR senior economist, said the market is relatively soft. “Overall housing levels are historically strong, but sales remain sluggish compared to the recent boom,” he said. “Home sales will probably fluctuate in a narrow range in the short run, but gradually trend upward with improving activity by the end of the year. It’s important to keep in mind that all real estate is local, and many markets are expected to have higher sales and strengthening prices during the second half of this year.”

Existing-home sales are projected to total 6.18 million in 2007 and 6.41 million next year, in contrast with 6.48 million in 2006. New-home sales are forecast at 860,000 this year and 901,000 in 2008, down from 1.05 million last year. Housing starts are likely to total 1.43 million units in 2007 and 1.49 million next year, below the 1.80 million recorded in 2006.

The national median existing-home price should ease by 1.3 percent to $219,100 in 2007 before rising 1.7 percent next year. The median new-home price will probably fall 2.3 percent to $240,800 this year, and then grow by 2.6 percent in 2008.

“We continue to experience a temporary distortion in comparing median existing-home prices,” Yun said. “Because the sales volume has shifted from many high-cost areas to moderately priced markets, we’re not getting a true apples-to-apples comparison. When you look at other measures, such as this week’s price index from Freddie Mac which is based on repeat sales, overall home prices are rising slowly.”

“Buyers today need to have a traditional view that housing as a long-term investment is an added benefit to their shelter expense. If so, that investment generally will build a nice nest egg over time, especially if they use a traditional mortgage instrument that reduces debt,” Yun said.

The 30-year fixed-rate mortgage is likely to increase to 6.6 percent in the third quarter and then hover at that level through 2008.

“Because of reductions in home sales and new home construction, the economy will expand at a subpar pace in 2007,” Yun said. “As housing market conditions improve going into 2008, the economy will reach back to its growth potential next year.” Growth in the U.S. gross domestic product is estimated at 2.0 percent this year, lower than the 3.3 percent growth in 2006. Yun forecasts GDP to grow 3.0 percent in 2008.

The unemployment rate is projected to average 4.6 percent in 2007, unchanged from last year. Inflation, as measured by the Consumer Price Index, is expected to decline to 2.5 percent this year, down from 3.2 percent in 2006. Inflation-adjusted disposable personal income is likely rise 2.8 percent this year, compared with a 2.6 percent increase in 2006.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.

# # #

Existing-home sales for May will be released June 25; the Pending Home Sales Index is scheduled for July 3 and the next forecast will be July 11.

Visit my web site for additional services and support: LawrenceYerkes.com

and visit Besthomes-NJ.com to find the latest New Jersey Real Estate property listings (Residential, Commercial, Multi-Family, Farm, Land).

Copyright 2007 by Lawrence Yerkes. All Rights Reserved.

NJ Public Advocate Released Eminent Domain Abuse Report

New Jersey Public Advocate Ronald K. Chen released a report on eminent domain abuse earlier this week, calling upon the Legislature to act swiftly to reform the state redevelopment law.

The report, available online here for download as PDF file, is a follow-up to the Public Advocate's eminent domain report issued last May.

Visit my web site for additional services and support: LawrenceYerkes.com

and visit Besthomes-NJ.com to find the latest New Jersey Real Estate property listings (Residential, Commercial, Multi-Family, Farm, Land).

Copyright 2007 by Lawrence Yerkes. All Rights Reserved.

Real Estate Cyber Tips - June 2007

CYBER MAGIC TRICKS

TRICK#1

A BUTLER TO READ YOU THE NEWS!
How about a butler to read the news to you each morning? This software converts any text you highlight on the web into spoken words so you can listen to text instead of reading from the screen. And as long as this neat software is running all you need do is press the program hot button on your keyboard to hear any selected text.This neat little program can also read you your e-mail, your word documents – in short any text you can see on your screen in just about any program.
It will also convert text into an MP3 or WAV audio file, so you can listen later after downloading to your iPod or burning it onto a CD. Good stuff and the price is right – it’s on the house!Click Here for This Cyber Trick

TRICK#2
Family Tree Genie
How’d you like to build a family tree and get your relatives to do most of the work?This is a new genealogy site with a new attitude. Instead of making you do all the work, the site allows you to invite in relatives, who use their knowledge of the family history, and let them fill in their information. It looks like when everyone gets through doing their bit we’ll end up with a huge consolidated family tree of the world! And like many other noble causes there is no cost to use this neat service.
Click Here for This Cyber Trick


GREAT PLACES!

GREAT PLACE #1
NEVER FORGET A THING!
This is a simple and easy to use tool that really works! Just go to this great place, enter your cell number and a text reminder. Then schedule the time you would like it delivered and Shazam – your cell phone will alert you right on time! You can set up birthday reminders for the rest of the year and get your “to do” reminders right on schedule. You can also use this little web service to remind others about an event at a specific date and time. Its uses are only limited by your imagination.The simplicity of this program will remind you of Google and there is no cost to use this one trick pony.
Click Here for This Great Place

GREAT PLACE #2
FIND LOCAL EVENTS FAST!
Want to find out what’s going on around town? Then this is a great place to start. You can search by date, zip code, insert a mileage radius and select the type of event such as Arts & Crafts, Community, Business & Tech, Dance, Fairs & Festivals, Food & Dining, Music, Performing Arts, Sports & Outdoors or Visual Arts. In addition you can add your event and it will be picked up here and at any applicable media partner where it will also appear locally on the web and in print.There are lots of additional bells and whistles here. Nice resource!
Click Here for This Great Place


The information contained in Real Estate CyberTips is believed to be true and correct but no warranties or guarantees are provided and readers should rely solely on their own information and advisors in connection with any sites, services or products reviewed. All content Copyright 2007, RECS. All rights reserved.



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

and visit BestHomes-NJ.com for the latest New Jersey Real Estate property listings (commercial, residential homes, multi-family, farm, land)

Copyright 2007 by Lawrence Yerkes. All Rights Reserved.

Pending Home Sales Suggests Market Stabilizing

WASHINGTON - A forward-looking indicator based on pending home sales shows the housing market could edge down but appears to be in the process of leveling out, according to the National Association of Realtors® (NAR).

The Pending Home Sales Index*, based on contracts signed in April, stood at 101.4, down 3.2 percent from an upwardly revised March reading of 104.8, and is 10.2 percent lower than April 2006 when it registered 112.9. The revised March index was 10.0 percent below a year earlier.

Lawrence Yun, NAR senior economist, said the current index appears to be a fair representation of overall housing market conditions. “It looks like we may be leaving a period of market disruptions, and for the past two months the pending home sales index has been similar in year-ago comparisons, which means home sales might ease but should be fairly stable in the months ahead,” he said.

“In April, existing-home sales declined in part because some subprime lenders went out of business and disrupted the market, but the impact appears to be diminishing and mortgage applications have risen in the last month,” Yun said. “This tells us that some borrowers who originally planned to finance with subprime mortgages are finding suitable loans in the conventional market, which will help to stabilize home sales.”

“On the other hand, psychological factors seem to be holding buyers back as they look for clear signs that the market has bottomed – that varies from one area to another.”

The index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales.

Annual changes in the index are more closely related to actual market performance than are month-to-month comparisons. As the relatively new index matures and seasonal adjustment factors are refined, the month-to-month comparisons will become more meaningful.

The PHSI in the Midwest rose 2.3 percent in April to 98.1 but was 4.4 percent below a year ago. The index in the South increased 0.7 percent from March to 116.0, but was 10.4 percent below April 2006. The index in the West fell 10.2 percent in April to 91.4 and was 11.7 percent lower than a year ago. In the Northeast, the index dropped 10.4 percent from March to 89.3 and was 15.4 percent below April 2006.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.
# # #

* The Pending Home Sales Index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity from 2001 through 2004 parallels the level of closed existing-home sales in the following two months. There is a closer relationship between annual index changes (from the same month a year earlier) and year-ago changes in sales performance than with month-to-month comparisons.

The forecast will be revised June 6, and existing-home sales for May will be released June 25. The next Pending Home Sales Index will be on July 3.



Visit my web site for additional services and support: LawrenceYerkes.com

and visit Besthomes-NJ.com to find the latest New Jersey Real Estate property listings (Residential, Commercial, Multi-Family, Farm, Land).

Copyright 2007 by Timon, Inc. All Rights Reserved.

IRS: Estate and Gift Taxes

If you give someone money or property during your life, you may be subject to federal gift tax. The money and property you own when you die (your estate) may be subject to federal estate tax. The purpose of this web page is to give you a general understanding of when these taxes apply and when they do not. It explains how much money or property you can give away during your lifetime or leave to your heirs at your death before any tax will be owed.

More Details



Visit my web site for additional services and support: LawrenceYerkes.com

and visit Besthomes-NJ.com to find the latest New Jersey Real Estate property listings (Residential, Commercial, Multi-Family, Farm, Land).

Copyright 2007 by Timon, Inc. All Rights Reserved.