Realty Reality: July 2007

Tuesday, July 31, 2007

Home Product Life Expectancy Is Changing

Maintenance and repair: in many ways they're the phantom elements when trying to figure the cost of owning a particular home. Consumers often focus on easy-to-identify figures, the mortgage payments and property taxes of the world. When it comes to repair costs, potential buyers, current homeowners and sellers alike are usually tempted to come up with a rough "guesstimate". While there is no scientific way to calculate future maintenance costs, some of the mystery can be eliminated by considering the average life expectancy of home components.

The reasonable lifespan of any home component depends on the quality of installation, level of care/maintenance, weather or climate conditions and the intensity of use. Of these factors, most experts agree that the regularity and the quality of maintenance plays the biggest factoring the life expectancy for the average home product. That being said, the average natural life of a specific element can be a useful guideline when estimating maintenance and repair costs.

In the summer of 2006, the National Association of Home Builders (NAHB) conducted a survey of trade associations, researchers and manufacturers to compile information about the durability of common home elements. When compared with the previous such survey by NAHB (taken during the summer of 1993), the life expectancy of some home components has increased in recent years, while the average life of other products has actually gone down.

Below is a sample of their findings. Please note that these figures represent general guidelines, and should not be interpreted as a warranty or guarantee of performance for an individual product.

The article is taken from one of our recent Newsletters that was e-mailed to all registered subscribers, via our RE/MAX of New Jersey web site.

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).

Monday, July 30, 2007

Builder Confidence Falls Further In July

A surplus of unsold homes on the market, combined with ongoing concerns in the subprime mortgage arena and affordability issues associated with tightened lending standards and higher interest rates, continues to take a significant toll on builder confidence, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI), released today. The HMI declined four points to 24 this month, which is its lowest level since January of 1991. (Source: NAHB)

Full Story . . .

Sunday, July 29, 2007

Federal Reserve Beige Book July 2007 Report

Reports from all twelve Federal Reserve Districts generally indicated continued economic growth during June through mid-July, with numerous individual reports pointing to evidence that the pace of growth has slowed. Several Districts characterized the overall pace of economic growth as "moderate" or "modest," although San Francisco reported that its economic expansion remained "solid" and Atlanta and St. Louis described overall conditions as "mixed." The Philadelphia, Cleveland, Richmond, Chicago, Dallas, and San Francisco reports each highlighted a decline in the overall rate of economic growth in their Districts.

Most reports on retail sales indicated slightly weaker conditions, on balance, than earlier in the year. But tourist spending remained robust, albeit with evidence of slower growth in some areas, and activity expanded for providers of nonfinancial services to businesses and consumers. Reports from the manufacturing sector were strong, with significant gains in output and sales, especially for durable goods. Producers in the agricultural and natural-resource sectors also saw strong demand, although some weather-related difficulties and other supply constraints were noted. Activity in residential real estate markets cooled in most parts of the country, but various Districts reported an ongoing pickup in demand for commercial space. Among financial institutions, lending activity mirrored developments in the economy more generally: commercial and industrial lending expanded further, while most Districts reported a decline in residential mortgage lending and some noted reduced demand for consumer loans.

Increases in wages and in prices of final goods and services remained modest on net. Upward pressure from the elevated prices of energy and other inputs persisted; while this pressure increased further in some cases, a few Districts noted a moderation in prices for some items. Scattered reports from various Districts indicated an increase in manufacturers' and retailers' ability to pass such cost increases on to final prices. More generally, however, Districts reported that vigorous competition held price increases down, and some contacts noted reliance on productivity increases to maintain profit margins in the face of rising input costs. Labor markets tightened a bit further in most areas. Increases in base wages and salaries generally remained moderate, but they were relatively rapid for workers with specialized skills in a wide range of sectors.

In the Philadelphia (Third District) region,overall economic activity increased in early July, although the rate of growth appeared to be easing. The manufacturing sector improved but not as much as in June. Retail sales of general merchandise rose, but auto sales were flat. Bank lending increased, although demand for residential mortgages continued to fade. Service industry activity rose, but the pace of growth has slowed somewhat from the first half of the year.

Third District business contacts generally expect business activity in the region to expand in the second half of the year, but not quite as strongly as in the first half. Manufacturers expect further gains, but not a strong advance. Retailers anticipate sales to continue growing near the current rate, but they say it is difficult to predict how successful the fall season will be. Auto dealers expect sales to remain sluggish through the rest of the year despite the reintroduction of manufacturers' incentives. Banks anticipate a moderate increase in overall lending, but they forecast a further decline in mortgage lending for home purchases. Service-sector firms expect business to continue to rise in the second half of the year, but not as rapidly as in the first half.

Source Beige Book

Click here for the Federal Reserve July 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

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

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

Thursday, July 26, 2007

New Residential Sales Index From Census Bureau

Sales of new one-family houses in June 2007 were at a seasonally adjusted annual rate of 834,000, according toestimates released jointly today by the U.S. Census Bureau and the Department of Housing and UrbanDevelopment. This is 6.6 percent (±11.0%)* below the revised May rate of 893,000 and is 22.3 percent (±10.1%) below the June 2006 estimate of 1,073,000.

The median sales price of new houses sold in June 2007 was $237,900; the average sales price was $316,200.The seasonally adjusted estimate of new houses for sale at the end of June was 537,000. This represents a supplyof 7.8 months at the current sales rate.

New Residential Sales data for July 2007 will be released on Friday, August 24, 2007, at 10:00 A.M. EDT.Our Internet site is: http://www.census.gov/newhomesales

Americans With Disabilities Act - Interesting Facts From The Census Bureau

On this day in 1990, President George H.W. Bush signed into law the Americans with Disabilities Act (ADA) [PDF], guaranteeing equal opportunity for people with disabilities in public accommodations, commercial facilities, employment, transportation, state and local government services and telecommunications.

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

Wednesday, July 25, 2007

Online Video Watched and Shared By Internet User

Online Video: 57% of internet users have watched videos online and most of them share what they find with others.

The growing adoption of broadband combined with a dramatic push by content providers to promote online video has helped to pave the way for mainstream audiences to embrace online video viewing. Fifty-seven percent of online adults have used the internet to watch or download video, and 19% do so on a typical day. Three-quarters of broadband users (74%) who enjoy high-speed connections at both home and work watch or download video online.

The Pew Internet & American Life Project's (PIALP) first major report on online video also shows how many video viewers have contributed to the viral and social nature of online video. More than half of online video viewers (57%) share links to the video they find with others, and three in four (75%) say they receive links to watch video that others have sent to them. (Source: PIALP)

Full Report

Eminent Domain Appeal Rejected in Lodi NJ

A New Jersey appellate panel rejected an appeal from municipal officials in Lodi to utilize eminent domain to seize private property including two mobile home communities. The decision reaffirms a 2005 Superior Court ruling that stated the evidence claiming the property as "blighted" was not strong enough to allow the municipality to seize the land for private redevelopment. The borough planned to utilize the land to create a gated senior community and upscale retail space, with a projected annual tax revenue of $3 million instead of the $250,000 currently coming in from the mobile homes.

The residents of Brown's Trailer Court and Costa's Trailer Court were backed by the grassroots organization "Save Our Homes" and New Jersey Public Advocate Ronald K. Chen in their four-year eminent domain battle.

NJAR®'s position on eminent domain revolves around the protection of New Jersey's private property owners.

Source: NJAR

Click here for corresponding New Herald Article
Click here for corresponding Star-Ledger Article

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).

Monday, July 23, 2007

Prices Rise In June While Existing-Home Sales Decline

WASHINGTON - Sales of existing homes fell in June with some potential buyers staying on the sidelines, but prices rose modestly as inventories eased, according to the National Association of Realtors®(NAR).

Total existing-home sales – including single-family, townhomes, condominiums and co-ops – declined 3.8 percent to a seasonally adjusted annual rate1 of 5.75 million units in June from a downwardly revised level of 5.98 million in May, and are 11.4 percent below the 6.49 million-unit pace in June 2006.

Lawrence Yun, NAR senior economist, said some consumers are uncertain. “Home buyers have been getting mixed signals about the housing market, which is causing some of them to hesitate,” he said. “Mortgage interest rates have risen recently, and tightening lending standards are continuing to hamper sales, but fewer risky loans will put the market on a healthier path. Although general buying conditions remain favorable for long-term home buyers, it appears some buyers are looking for more signs of stability before they have enough confidence to make an offer.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 6.66 percent in June, up from 6.26 percent in May; the rate was 6.68 percent in June 2006.

“Two bright spots in the June report are a decline in housing inventory and a modest gain in home prices,” Yun said. “Although we’ve seen seasonal month-to-month price increases over the past four months, this is the first time in 11 months that the median home price is higher than the year-ago price.”

The national median existing-home price2 for all housing types was $230,100 in June, up 0.3 percent from June 2006 when the median was $229,300. The median is a typical market price where half of the homes sold for more and half sold for less.

Total housing inventory fell 4.2 percent at the end of June to 4.20 million existing homes available for sale, which represents an 8.8-month supply at the current sales pace, the same as a downwardly revised 8.8-month supply in May.

NAR President Pat V. Combs, from Grand Rapids, Mich., said that local market conditions vary widely. “Consumers should avoid making decisions based on what they hear about the national market because all real estate is local,” she said.

“There are pockets around the country where home sales are quite strong, so you really need to consult with a knowledgeable real estate professional about local market conditions – experience is one way Realtors® add value to the real estate transaction, and a reputable agent is your best resource to navigate the current market, whether it’s moving up or down,” Combs said.

Single-family home sales fell 3.5 percent to a seasonally adjusted annual rate of 5.01 million in June from a downwardly revised 5.19 million in May, and are 12.1 percent below the 5.70 million-unit level in June 2006. The median existing single-family home price was $230,300 in June, up 0.1 percent from a year ago.

Existing condominium and co-op sales dropped 6.3 percent to a seasonally adjusted annual rate of 740,000 units in June from 790,000 in May, and are 6.6 percent lower than the 792,000-unit pace a year ago. The median existing condo price3 was $228,900 in June, up 2.6 percent from June 2006.

Regionally, existing-home sales in the Northeast fell 7.3 percent to a level of 1.01 million in June, and are 7.3 percent lower than June 2006. The median existing-home price in the Northeast was $294,400, up 1.8 percent from 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.
# # #

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).

Friday, July 20, 2007

HUD ROLLS OUT GREEN INITIATIVE FOR SOME PROPERTIES

Section 8 pilot to reduce consumption of resources, lower utility costs, and improve indoor air quality

WASHINGTON - The U.S. Department of Housing and Urban Development(HUD) today rolled out a nationwide pilot program to encourage owners of multifamily Section 8 properties to rehabilitate and operate their buildings using "green building" principles that embody a combination of sustainability, energy efficiency, recycled materials, indoor air quality, and incorporate the healthy housing approach pioneered by HUD's Healthy Homes Initiative.

Green building practices are designed to lower utility costs, thereby benefiting taxpayers, property owners, and the residents of the buildings themselves. When rehabilitation is performed in a manner that meets both green and Healthy Housing principles, residents can also benefit through improved indoor air quality, lower risk of pest infestations, lower levels of allergens, and reduced risk of mold-related illness.

The Green Initiative will be implemented on properties within HUD's Section 8 portfolio, specifically properties in the Mark to Market (M2M) Program, administered by HUD's Office of Affordable Housing Preservation (OAHP). Participation in the Initiative will be voluntary for eligible-property owners.

HUD Deputy Assistant Secretary Theodore K. Toon announced the initiative today in San Francisco at the "National Symposium on Green Affordable Housing" sponsored by the Enterprise Foundation and the Institute for Professional and Executive Development.

"The Mark-to-Market Green Initiative recognizes that the affordable housing industry can make a significant impact in reducing energy consumption and enhancing tenants' living environments." said Brian Montgomery, Assistant Secretary for Housing - Federal Housing Commissioner. "I appreciate the hard work of our Office of Affordable Housing Preservation team that launched this Initiative, and I look forward to seeing the impact(s) of this and similar Green Programs throughout the HUD affordable housing portfolio."

The M2M Program is a unique platform for establishing HUD's Green Initiative because it can be implemented within existing statutes, regulations, and current budget authorities. M2M affords HUD the opportunity to fund these efforts in a representative sample, which is already undergoing rehabilitation.

M2M provides an opportunity to test the impact of green and Healthy Housing principles in the existing HUD-subsidized multifamily inventory, by providing modest incentives to owners and purchasers to perform needed rehab and maintenance using Green alternatives, and to collect ongoing data to validate impacts on utility consumption and indoor air quality.

Currently, under M2M, HUD finances 80 percent of most rehab items, and 97 percent of certain significant additions to the property. Under this initiative, HUD will designate substantially greener materials, appliances, systems, etc. as "significant additions."

As one of HUD's primary housing preservation tools since its creation in 1997, OAHP has restructured over 1,600 projects nationwide through M2M. These projects are privately owned, HUD-subsidized (through Section 8), multifamily properties, with approximately 100 units each, on average. In addition to rehabilitation of properties, M2M also resizes and restructures property debt to account for market rent levels, to pay for rehabilitation and 20 years of estimated repairs and replacements, and to establish a financially viable project for the long term.

###

HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities, and people living with HIV/AIDS. The Department also promotes economic and community development as well as enforces the nation’s fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.

Wall Street -- Not The Fed - Keeps SubPrime In Line

Despite government calls for tougher regulation in the subprime mortgage market, brokers and lenders don't seem to be getting their guidance from Washington. Instead, they're turning to Wall Street. (Source: CNNMoney.com)

Full Story . . .

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).

Thursday, July 19, 2007

Foreclosure Specials Thrive In Niche

Overextended homeowners in buyers’ markets combined with stagnant employment opportunities in some communities increase the odds that individuals will find themselves in desperate mortgage situations. Despite the trauma foreclosures impose on homeowners and communities, real estate professionals—particularly foreclosure specialists—can make a difference. (Source: RISMedia)

Full Story . . .

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).

Tuesday, July 17, 2007

Builder Confidence Falls Further In July

Wednesday, July 11, 2007

Home Prices To Recover in 2008 as Inventories Decline

WASHINGTON - Home prices are expected to recover in 2008 with existing-home sales picking up late this year and new-home sales rising early next year, according to the latest forecast by the National Association of Realtors®(NAR).

Lawrence Yun, NAR senior economist, said a good buyers’ market has evolved. “Buyers now have an overwhelming advantage given the wide selection of homes available in many markets,” he said. “But with profit margins coming under pressure, homebuilders will limit new construction well into 2008. This should help the overall inventory level to move steadily into a more balanced state.”

Existing-home sales are expected to total 6.11 million this year and 6.37 million in 2008, down from 6.48 million last year. New-home sales are projected at 865,000 in 2007 and 878,000 next year, compared with 1.05 million in 2006. Housing starts, including multifamily units, are forecast at 1.43 million units this year and 1.44 million in 2008, down from 1.80 million last year.

Existing-home prices are likely to rise 1.8 percent to a median of $222,700 in 2008 after a 1.4 percent decline this year to $218,800. The median new-home price should rise 2.2 percent to $245,400 next year following a 2.6 percent drop in 2007 to $240,100.

“Markets that sharply reduce new construction in 2007 will generally experience respectable price increases in 2008,” Yun said. “Local conditions vary considerably, but with historically low mortgage interest rates this summer and sustained job gains, it could be a good time for first-time buyers with a long-term view to test the housing waters.”

The 30-year fixed-rate mortgage is estimated to average 6.7 percent during the second half of this year, and fluctuate around 6.6 percent in 2008.

Growth in the U.S. gross domestic product (GDP) will probably be 2.0 percent in 2007, compared with a 3.3 percent growth rate last year; GDP is forecast to grow 2.8 percent in 2008.

The unemployment rate is likely to average 4.6 percent in 2007, unchanged from last year. Inflation, as measured by the Consumer Price Index, is projected at 2.6 percent in 2007, down from 3.2 percent last year. Inflation-adjusted disposable personal income should rise 3.0 percent this year, up from a 2.6 percent gain 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 June will be released July 25; the Pending Home Sales Index is scheduled for August 1 and the next forecast will be August 8.

Wednesday, July 04, 2007

Celebrate: July 4th - Interesting Facts From The Census Bureau

On this day in 1776, the Declaration of Independence was approved by the Continental Congress, starting the 13 colonies on the road to freedom as a sovereign nation. As always, this most American of holidays will be marked by parades, fireworks and backyard barbecues across the country.

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

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

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

Celebrate: July 4th - Fireworks at Ft. Dix - 2007

On July 4, Fort Dix will again host a nighttime celebration starting at 6 p.m. on Doughboy Field.

The evening's entertainment will include an aerial parachuting demonstration by the Army Silver Wings Parachute Team of Fort Benning, Ga. and country music star Craig Morgan. The 307th Army Rock Show Band, will also perform, and at 9:30 p.m., a fireworks display will start.

The display is the largest in South Jersey, and has been a part of Fort Dix tradition since 1944.

Parking will be reserved for vehicles with the proper decals, but shuttle buses will be provided for those who do not have decals. Starting at 5 p.m., buses will depart from the Air Mobility Warfare Center, Helen A. Fort Middle School, Fort Dix Elementary School and the Wrightstown Circle Area.

Shuttle buses will run continuously between the field and the parking areas. Signs will be posted directing traffic to authorized parking spaces and the location of the bus pick-up.

A photo ID is required for all adults and children age 12 or older.

Guests are invited to bring lawn chairs and blankets. No coolers allowed (food and drink venders available). Pets will not be permitted access to Fort Dix or in the Doughboy Field area. Barbeques, open fires and private fireworks will not be permitted on the field.

Go to www.dixmwr.com for the latest information about Fort Dix events.

Sunday, July 01, 2007

Real Estate Cyber Tips - July 2007

CYBER MAGIC TRICKS

TRICK#1

SOUND LIKE IBM!
If you have a one person or very small office (or know someone who does) we’ll bet you’ll love this! Here’s a chance to sound like a major corporate operation because, when someone phones in to you, they will hear the sounds of voices, phones, computers, file drawers closing – in short all of the hubbub you’d expect to hear at a thriving office.These folks have produced two sound tracks (“busy” and “very busy”) that you can download. When clicked these sound files make your tiny office sound like a giant of the industry. Or as the Wall Street Journal said you can “ -- make your quiet office sound like it’s bustling with activity. ”Go big time for less that the price of a couple of gallons of gas ! Click Here for This Cyber Trick

TRICK#2

SET UP A PIPELINE TO ANY COMPUTER!
This neat trick builds a pipeline (they call it a “Tube”) from your computer to any computer in the world. Once installed it immediately builds secure synchronized connections between your desktop and the desktop of your friends, family, business associates - any computer including any others you use (office to home).Anything you drag and drop to a “tube” is whisked to the desktop of anyone you choose - and vice versa. This is a neat little service. It’s easy to use and handles huge files (up to 2GB).Oh yes, put your wallet away - it's on the house! Click Here for This Cyber Trick

GREAT PLACES!

GREAT PLACE #1

CHECK YOUR PRIVACY ON THE WEB!
Did you ever wonder exactly what a software license agreement or web site’s privacy statement says – but downloaded the software or wandered on into the site without reading the 6 pages of Gobbledygook? We’re sure you are not alone – who wants to read through pages and pages of boring text?These folks have developed a little program that will analyze the wording of a license agreement and summarize the significant highlights –in a flash. All you do is open the program and copy/past the license text into the text box and click “Analyze”. In the blink of an eye the summary appears alerting you to possible dangers and saving you interminable and excruciatingly boring time spent wading through the document. The software is specifically designed for license agreements but appears to reveal items of concern in privacy statements also.And if you download it for personal use there is no cost for this time saving tool. Click Here for This Great Place

GREAT PLACE #2

THE COMPUTER OF THE FUTURE!
What if a plain sheet of paper became your computer screen? What if a pen connected the paper world to the digital world?Picture yourself taking notes during a meeting or lecture, your pen records the conversation and digitizes your notes, automatically synching the ink and audio. Later you tap the ink and the pen replays the conversation from the exact moment the note was written. Then you upload the notes and audio to a PC where they can be replayed, saved, searched or sent.This scenario is no longer “what if”. These folks are giving us a peek at the future of computing and promise to deliver that future in just a few months. Worth a visit! 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)

Realty Reality

Tuesday, July 31, 2007

Home Product Life Expectancy Is Changing

Monday, July 30, 2007

Builder Confidence Falls Further In July

Sunday, July 29, 2007

Federal Reserve Beige Book July 2007 Report

Thursday, July 26, 2007

New Residential Sales Index From Census Bureau

Americans With Disabilities Act - Interesting Facts From The Census Bureau

Wednesday, July 25, 2007

Online Video Watched and Shared By Internet User

Eminent Domain Appeal Rejected in Lodi NJ

Monday, July 23, 2007

Prices Rise In June While Existing-Home Sales Decline

Friday, July 20, 2007

HUD ROLLS OUT GREEN INITIATIVE FOR SOME PROPERTIES

Wall Street -- Not The Fed - Keeps SubPrime In Line

Thursday, July 19, 2007

Foreclosure Specials Thrive In Niche

Tuesday, July 17, 2007

Builder Confidence Falls Further In July

Wednesday, July 11, 2007

Home Prices To Recover in 2008 as Inventories Decline

Wednesday, July 04, 2007

Celebrate: July 4th - Interesting Facts From The Census Bureau

Celebrate: July 4th - Fireworks at Ft. Dix - 2007

Sunday, July 01, 2007

Real Estate Cyber Tips - July 2007

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