Realty Reality: August 2007

Friday, August 31, 2007

Flippers Fuel Foreclosures

Real estate speculators drove prices up in some of the hottest markets during the boom. Now they're making foreclosures jump. (Source: CNNMoney.com)

More Information . . .

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, August 30, 2007

Foreclosure Investing For Dummies

"Foreclosure Investing For Dummies", by Ralph R. Roberts with Joe Kraynak, authors of "Flipping Houses For Dummies", bills itself as "A Reference for the Rest of Us!" providing step-by-step instructions on how to make smart, informed investments in floreclosures, including buy and sell foreclosure, preforeclosure and bank-owned properties.

This book provides explanations, often humorous and fun, in plain English for "getting in and getting out", along with tear out cheat sheets and top ten lists. It also summarizes foreclosure rules and regulations in all 50 states, as well as providing contact information for realtors who have contributed information for their respective states. (In the interest of full disclosure, I am listed as a Realtor contributor for New Jersey, being located in South Jersey; the other contributor is located in North Jersey.)

You will discover how to: research property titles, mortgages and deeds; build a strong investment team, obtain financing, network your way to success; avoid common pitfalls and invest with integrity.

This "hands-on guide covers all aspects of investing in foreclosures, from identifying potential properties and assessing value to carefully researching and inspecting properties, so you don't get stuck holding a money pit... or even worse, a worthless piece of paper! Discover how to deal with homeowners in preforeclosure, bid for a property, buy bank-owned properties...and ultimately sell for maximum profit."

It's 22 chapters plus appendix and index are grouped as follows:
Introduction
P

repping Yourself for Foreclosure Success
Laying the Groundwork for Maximized Profit and Minimized Risk
Creating Win-Win Situations in Pre-Foreclosure (Prior to Auction)
Finding and Buying Foreclosure and Bankruptcy Properties
Cashing Out Your Profit...after the Sale
The Part of Tens (10 Common Beginner Blunders, 10 Ways to Maximize Future Leads by Acting with Integrity, 10 Tip for Avoiding Common Foreclosure Minefields)
Appendix: Foreclosure Rules and Regulations for the 50 States
Index

For those that want to take advantage of the changing real estate market, the information in this book should provide the incite and guidelines needed to get you started on the right path to foreclosure investing.

Click here for more information about the book on Amazon.com

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).

Foreclosure Fallout: Rescue Scams

Scammers are taking advantage of mortgage holders at their most vulnerable - when they're about to lose their homes. (Source: CNNMoney.com)

More Information . . .

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).

Wednesday, August 29, 2007

Truely Green Lawn Care

In cities and towns across the country, the smell of fresh cut grass and the hum of lawnmowers in the neighborhood are signs that summer is in full swing. Taking pride in your own lawn is as American as the 4th of July. While homeowners have always sought new ways of creating lush lawn spaces, there is an increasing emphasis on using environmentally sound methods. This is organic lawn care in the 21st century.

We tend to think of a lush, healthy lawn in terms of how it enhances the look of our home and our enjoyment outdoor spaces. While the visual aspects of a healthy lawn are impossible to ignore, it is easy to forget that our lawns are tiny ecosystems in their own right. A healthy lawn prevents soil erosion, filters contaminments from rainwater, and absorbs many types of airborne pollutants. Grass is also extremely efficient at converting carbon dioxide into oxygen. A lawn is far more than ornamental: it is a valuable contributor to the environment.

Organic Lawn Care on the Rise

Across the country, there is growing concern over how traditional lawn care methods affect not only the health of our family, but the greater environment around us as well. More and more homeowners are abandoning the "ends justify the means" approach to lawn care. Organic gardening, landscaping and lawn care are quickly entering the mainstream.

General Philosophy

Organic lawn care calls for a nearly complete reversal in strategy - and not just in terms of the materials and tools you'll use. Much of traditional lawn care focuses heavily on treatment - reactionary steps taken to cure problems after they arise. Organic lawn care begins with a preventative "health care" plan. A natural, healthy lawn should be strong enough to fight off weeds, resist lawn diseases and endure insect attacks.

Basic Guidelines

1. Natural Fertilizers
Chemical fertilizers usually have a salt base, which causes a pH imbalance in most soils. Chemical fertilizers have also been shown to cause toxic buildup of nitrates, which can find its way into natural bodies of water along with drinking water.

Organic fertilizers are made from plant, animal or mineral sources (as opposed to synthetic sources), and deliver nutrients that plants need much more safely. Organic brands can be found in most gardening stores and home improvement centers. Apply organic fertilizers into the top few inches of soil before the growing season begins for the best results. Organic fertilizers typically yield a less vibrant shade of green early in the growing season as the soil's microorganisms digest the organic nutrients, but over the course of the season the true color of the lawn will show.

2. Mow High
Longer grass is healthier grass. While the norm in suburbia is the lawn equivalent of the crew cut, longer grass is more resistant to both weeds and pest problems. The reason: longer grass has more leaf surface area to take in sunlight, which in turn results in a deeper root system. Longer grass also shades the soil, helping the ground remain cool and retain moisture. Set your mower's blades between 2.5 and 3.5 inches high to ensure a healthy lawn. For best results, mow often, and make sure that the blades of your mower are kept sharp.

3. Water Deep
Roots respond to the watering techniques used on the lawn. Most lawns are watered frequently but with too little water. Recurrent shallow watering causes the roots to remain near the surface, which makes the grass vulnerable during dry periods. By watering properly, you can train the roots to extend down further into the soil.

To achieve a "deeper watering" effect, use trickle irrigation or soaker hoses to apply about an inch of water to the lawn. This will allow the water to soak six-eight inches deep into the soil.
A lawn's watering needs vary according to the climate, grass type and general health of the lawn - but realistically no lawn needs to be watered daily. Water the lawn only when it begins to show early signs of wilting and/or dryness. To reduce evaporation, water in the early morning.

4. Avoid Chemical Pesticides
Like chemical fertilizers, chemical pesticides can seep into the ground water, and growing research indicates that use of chemical pesticides and herbicides on home lawns may pose health risks for children, adults and pets alike. The toxic chemicals used in pesticides can also be unwittingly brought into the home via the soles of shoes or pet's paws. The safest lawn is one that uses little or no chemical pesticides.

A lawn that has been grown with natural fertilizer, longer grass blades and deeper watering is already more resistant to weeds and insects. Those weeds that do grow can be eliminated with hand weeding. If the manual route sounds unappealing, a natural corn-gluten herbicide applied before seeding can safely control weeds. For organic pest control, consider mixing garlic or hot-pepper with water to create a spray safe for animals and humans alike. Botanical pesticides, while still toxic, are a far less polluting alternative to synthetic pesticides.

5. Grass-cycle
When properly dispersed across the surface of the lawn, short grass clippings can reduce or eliminate fertilizer needs, cut down on watering needs and eliminate the need to dispose grass clippings and leaves. "Grasscycling" can make turf tougher and greener, and can prevent many common turf diseases. To be effective, use a mulching mower. Mowing frequently will prevent the clippings from becoming too large

Questions to Ask When Hiring a Lawn Service
Is the company licensed?
Does the company have a good track record?
Is the company affiliated with a professional lawn care association?
Do they offer a variety of pest control programs?
Will the company educate you regarding the health of your lawn?
Will the company disclose what pesticides will be used, and any potential health or environmental risks may arise from their use?

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).

Tuesday, August 28, 2007

Some Home Buyers Gain Edge From Credit Crisis

What credit crunch? Home buyers with solid credit and money for a down payment are now better positioned than they were a few weeks ago. (Source: USAToday.com)

More Information . . .

Monday, August 27, 2007

Existing Home Sales Stable In July

WASHINGTON - Existing-home sales were essentially unchanged in July, with increases in the West and Northeast offset by a decline in the Midwest, according to the National Association of Realtors®(NAR).

Total existing-home sales – including single-family, townhomes, condominiums and co-ops – slipped 0.2 percent to a seasonally adjusted annual rate1 of 5.75 million units in July from an upwardly revised pace of 5.76 million in June, and are 9.0 percent below the 6.32 million-unit level in July 2006.

Lawrence Yun, NAR senior economist, said the market is holding on despite temporary mortgage disruptions. “Home sales probably would be rising in the absence of the mortgage liquidity issues of the past two months,” he said. “Some buyers with contracts have been scrambling when loan commitments did not materialize at the last moment, while other potential buyers are simply waiting for the mortgage market to stabilize.

“The rise in sales and prices in the Northeast region on a fairly consistent basis in recent months is promising because this was the first region that underwent sales and price weakness after the boom. Now, it appears that it will be the first region to climb back, indicating that other regions could follow a similar path.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 6.70 percent in July, up from 6.66 percent in June; the rate was 6.76 percent in July 2006. Last week, Freddie Mac reported the 30-year fixed rate dropped to 6.52 percent.

The national median existing-home price2 for all housing types was $228,900 in July, down 0.6 percent from July 2006 when the median was $230,200, the highest monthly price on record. The median is a typical market price where half of the homes sold for more and half sold for less.

Total housing inventory rose 5.1 percent at the end of June to 4.59 million existing homes available for sale, which represents a 9.6-month supply at the current sales pace, up from an upwardly revised 9.1-month supply in June.

NAR President Pat V. Combs, said that mortgages are available for the majority of potential buyers. “For buyers able to qualify for conventional financing, there are ample opportunities in the current market,” she said. “Availability and pricing of conventional loans are reasonable, and FHA-insured mortgage applications have been rising as low- and moderate-income buyers seek alternatives to subprime loans. If buyers are in it for the long haul, now can be a good time to get into your home.”

Combs added it’s important to boost FHA’s viability. “NAR is advocating for a stronger FHA to help creditworthy borrowers who may be trapped in subprime loans with unfavorable terms,” she said. “We’d also like to see the elimination of prepayment penalties, which can trap borrowers in mortgages they can no longer afford.”

Single-family home sales slipped 0.4 percent to a seasonally adjusted annual rate of 5.00 million in July from an upwardly revised level of 5.02 million in June, and are 9.3 percent below the year-ago pace of 5.51 million units. The median existing single-family home price was $228,600 in July, down 1.0 percent from July 2006.

Existing condominium and co-op sales rose 1.4 percent to a seasonally adjusted annual rate of 750,000 units in July from 740,000 in June, but are 7.5 percent below the 811,000-unit level in July 2006. The median existing condo price3 was $230,600 in July, up 2.4 percent from a year ago.

Regionally, existing-home sales in the Northeast increased 1.0 percent to a level of 1.02 million in July, but are 2.9 percent lower than July 2006. The median existing-home price in the Northeast was $290,900, up 5.9 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.

# # #

1The 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.

2The 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.

3Because 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 August will be released September 25. The next Pending Home Sales Index will be on September 5 and the forecast will be revised September 11.

Sunday, August 26, 2007

Motor Vehicle Information for Moving Into To New Jersey

If you are, or will be, moving into New Jersey, the following web address is an important starting point for anything to do with the New Jersey's department of motor vechicles, known officially as the Motor Vehicle Commision (MVC):

http://www.state.nj.us/mvc/Vehicle/moving_to_nj/

Saturday, August 25, 2007

New Home Sales Improve In July After Weak June

Sales of new single-family homes were up 2.8% in July to a seasonally adjusted annual rate of 870,000 units as new-home sales rebounded from weak sales figures in June, the U.S. Commerce Department reported today. The July sales pace was 10.2% below a year earlier. (Source: NAHB)

More Information . . .

Friday, August 24, 2007

Things Home Buyers Can Ask For, But Usually Don't

A recent article in Realty Times stated, "When you're sitting right in the middle of a buyers market, or at least an equitable market is the time when [home] buyers should start asking for the moon. If you don't ask, you'll never get what you want."

Here's is my short list:

Note: I'm assumming a normal real estate transaction, not a sherrif sale or similar scenario where you may not have the opportunity to even properly view the property before purchasing...

1. It's important that unless you have the professional qualifications and experience, you never, ever, skip doing a home inspection, even if you are buying "as is".

If offering to buy "as is", always include a limit that home inspection remediation repairs can't go above, such as $5000 or whatever is appropriate for your situation. Then do as many other inspections that you desire within the agreed-on inspection period to minimize your buying risk. If the remediation repairs identified by the inspections go over the limit, you can still accept the property, but you will have the option to back out if you uncover unanticipated problems that significantly increase your costs.

2. Request a home warranty be included in the sale and paid by the seller. We are only talking about $400, but it can protect you from unexpected problems during the first year. Even if seller does not provide it, unless you have a new home or completely updated systems and appliances, then it is probably worth paying for it yourself. (Or as the above mentioned article suggests, add the cost of the home warranty into the purchase price so it's paid for at closing.)

3. If you want to include personal property, such as items of funiture or appliances, even if identified as excluded by the seller, just ask. The worst that can happen is that the seller says, "No."

Items such as pool tables or even chandeliers, if not strictly sentimental in value, often are difficult to move and seller may determine that it's easier to install a replacement in their next house and include in sale to make the deal happen.

4. Ask for help with closing costs. Seller can pay a flat amount against the settlement costs, or can pay a point toward the mortgage.

What is allowed varies by the mortgage company. Since you should be pre-approved before making an offer, make sure you find out during the pre-approval process what your options are so that you can make your request to the seller and structure the sales contract appropriately.

The use of an experience Realtor who can effectively represent you during the negotation process can result in thousands of dollars in savings and/or added value in your home purchase.

Happy house buying!

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, August 23, 2007

Subprime Problem Effects High End Mortgages

The subprime mortgage collapse isn't just threatening the market for low-end homes; it's also afflicting luxury homes. (Source: CNNMoney.com)

More Information . . .

Tuesday, August 21, 2007

Commerical Real Estate Index Continues Rise

WASHINGTON - A forward-looking index for the commercial real estate market recorded its ninth consecutive improvement in the second quarter, according to the National Association of Realtors®(NAR).

The Commercial Leading Indicator for Brokerage Activity1 rose 0.5 percent to an index of 120.7 in the second quarter, the highest on record, from a downwardly revised reading of 120.1 in the first quarter, and is 1.1 percent higher than the second quarter of 2006 when it stood at 119.7. NAR’s track of the index dates back to 1990.

Lawrence Yun, NAR senior economist, said the commercial sectors are benefiting most from rises in industrial production, shipments of durable goods and wholesale trade. “Despite some signs of slower overall economic expansion, the rise in the index means net absorption of space in the industrial and office sectors is likely to expand over the next six to nine months,” he said. “In addition, an improvement in returns on investment implies healthy rent increases for commercial property owners.”

Positive movements in the index components more than offset a fall in the National Association of Real Estate Investment Trusts price index. The net gain in NAR’s index also indicates modestly higher completions of overall office, warehouse, retail and lodging structures.

“In short, the latest data suggests improved business opportunities for commercial real estate practitioners in the months ahead,” Yun said.

Net absorption in the office and industrial sectors in the fourth quarter of 2007 is expected to be 30 million to 40 million square feet, with about $365 billion to $375 billion in new completed commercial construction activity, compared with $343 billion of new construction reported in the second quarter of this year.2

The rise in the commercial leading indicator also implies that commercial real estate practitioners could expect leasing and sales activity in the fourth quarter of this year to be about 1.1 percent higher than the fourth quarter of 2006.

The commercial leading indicator is a tool to assess market behavior in the major commercial real estate sectors. The index incorporates 13 variables that reflect future commercial real estate activity, weighted appropriately to produce a single indicator of future market performance, and is designed to provide early signals of turning points between expansions and slowdowns in commercial real estate.

The 13 series in the index are industrial production, the REIT (real estate investment trust) price index, NCREIF (National Council of Real Estate Investment Fiduciaries) total return, personal income minus transfer payments, jobs in financial activities, jobs in professional business service, jobs in temporary help, jobs in retail trade, jobs in wholesale trade, initial claims for unemployment insurance, manufacturers’ durable goods shipment, wholesale merchant sales, and retail sales and food service.

More than 120,000 NAR members offer commercial services, and 68,000 of those are currently members of the Realtors® Commercial Alliance, NAR’s commercial division.

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.
# # #

1NAR reviewed a wide variety of indicators, examined the relationships of indicators that demonstrated a historical impact on commercial real estate, and modeled a forward-looking index based on historic trends. Although individual indicators sometimes move in opposite directions, together they offer a better indication of future market activity.

Quarterly data for 13 selected series were reviewed back through the first quarter of 1990 (table attached). The modeling demonstrated a change in commercial brokerage activity that could be seen two quarters later as measured by net absorption in the industrial and office sectors, and the completion of new commercial buildings as measured by the value of building construction put-in-place of office, warehouse, retail and lodging structures. An index of 100 is defined as the level of commercial real estate market activity during the first quarter of 1990, the first period to be analyzed.

2The dollar figures are seasonally adjusted annualized rates as recorded by the U.S. Department of Commerce.

The next commercial real estate market report and forecast is scheduled for release on September 18, and the next commercial leading indicator index will be released November 20.

Saturday, August 18, 2007

Video Game Charts

If you need to keep up on who is winning the retail war in the sale of video games consoles, then VG Charts may be for you. It provides American, Japanese and worldwide statistics and charts for retail sales (sell-through) of video game consoles as well as leading video game software.

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, August 17, 2007

Tax Information for Individuals, Businesses, Charities, Non-Profits and more

The IRS web site has established online resources for Individuals, Businesses, Charities and Non-Profits, Government Entities and more.

For example, the Individual resource section contains additional specific information for:
Employees Farmers International Taxpayers Military Parents Self-Employed Seniors & Retirees Students

The Businesses resource section contains additional specific information for:
Corporations International Businesses Partnerships Small Business/Self-Employed

The Charities and Non-Profits resource section contains additional specific information for:
Charitable Orgs Churches and Religious Orgs Contributors Other Non-Profits Political Orgs Private Foundations

Wednesday, August 15, 2007

Metro Homes Prices Improving But Sales Down in Most States for Second Quarter

WASHINGTON - Home price trends are improving in metropolitan areas but existing-home sales during the second quarter were below a year ago in most states, according to the latest quarterly survey by the National Association of Realtors(NAR).

In the second quarter, 97 out of 149 metropolitan statistical areas 1 show year-over-year increases in median existing single-family home prices, including nine areas with double-digit annual gains; 50 had price declines; and two were unchanged. In the first quarter of 2007, revised data shows 83 areas had annual price increases, while in the fourth quarter of 2006 only 68 areas were up.

Lawrence Yun, NAR senior economist, said the price trends are encouraging. “Although home prices are relatively flat, more metro areas are showing price gains with general improvement since bottoming-out in the fourth quarter of 2006,” he said. “Recent mortgage disruptions will hold back sales temporarily, but the fundamental momentum clearly suggests stabilizing price trends in many local markets.”

Total state existing-home sales, including single-family and condo, were at a seasonally adjusted annual rate2 of 5.91 million units in the second quarter, down 10.8 percent from a 6.63 million-unit pace in the second quarter of 2006. Six states showed increases in the sales pace from a year ago; one was unchanged and complete data for two states were not available.

The national median existing single-family home price was $223,800 in the second quarter, down 1.5 percent from the second quarter of 2006 when the median price was $227,100. The median is a typical market price where half of the homes sold for more and half sold for less, but there has been a downward skew in the national comparison because sales have declined in many high-cost areas and risen in some lower cost markets.

“Since all real estate is local, this report on metro area home prices is more meaningful than our monthly data on national prices because metro areas are less subject to price distortion that can result from geographic changes in the composition of sales,” Yun said.

NAR President Pat V. Combs, explained how homes are holding their value. “Unlike stocks, where significant equity can vaporize overnight, there is little volatility in home prices, and most homeowners are experiencing very healthy long-term gains,” she said.

“The costs of construction trends up from one year to the next, so even in areas that experience price declines, owners who maintain their property generally retain most of the equity that has built-up in their homes over time.”

A separate NAR survey shows the typical owner stays in a home for six years. “While local conditions vary greatly, a typical owner who bought six years ago is seeing a 45 percent increase in the value of their home. Even so, it isn’t valid to directly compare homeownership with stocks. Although a home is normally a long-term appreciating asset, it is primarily shelter – most owners sell when their needs change, not when the market turns,” Combs said.

An analysis of all available data over the past six years shows almost every market experienced price gains from the second quarter of 2001 to the second quarter of this year.

According to Freddie Mac, the national average commitment rate on a 30-year conventional fixed-rate mortgage was 6.37 percent in the second quarter, up from 6.22 percent in the first quarter; the rate was 6.60 percent in the second quarter of 2006.

The best total sales performance was in Wyoming, where existing-home sales rose 10.8 percent from the second quarter of 2006. In Iowa, the second-quarter sales pace rose 4.1 percent from a year ago, while North Dakota experienced the third strongest gain, up 2.9 percent. Oklahoma, Indiana and Nebraska also posted annual sales gains.

In the second quarter, the largest single-family home price increase was in the Salt Lake City area, where the median price of $233,100 rose 21.9 percent from a year ago. Next was Binghamton, N.Y., at $111,200, up 19.8 percent from the second quarter of 2006, followed by Salem, Ore., where the second quarter median price increased 16.7 percent to $227,900. Most of the metros with price declines were modest, although four areas experienced double-digit drops.

Median second-quarter metro area single-family home prices ranged from a very affordable $71,700 in Elmira, N.Y., to 12 times that amount in the San Jose-Sunnyvale-Santa Clara area of California where the median price was $865,000. The second most expensive area was San Francisco-Oakland-Fremont, at $846,800, followed by the Anaheim-Santa Ana-Irvine area (Orange County, Calif.), at $727,000.

In addition to Elmira, other affordable markets include the Youngstown-Warren-Boardman area of Ohio and Pennsylvania, at $76,700, and the Saginaw-Saginaw Township North area of Michigan, with a second-quarter median price of $86,900.

In the condo sector, metro area condominium and cooperative prices – covering changes in 55 metro areas – show the national median existing condo price was $226,800 in the second quarter, up 1.0 percent from $224,500 in the second quarter of 2006. Thirty-seven metros showed annual increases in the median condo price, including seven areas with double-digit gains; one was unchanged and 17 areas had price declines.

The strongest condo price gains were in the Salt Lake City area, where the second quarter price of $162,200 rose 25.2 percent from a year earlier, followed by Reno-Sparks, Nev., at $220,500, up 17.0 percent, and the Austin-Round Rock area of Texas, where the median condo price of $172,100 rose 14.9 percent from the second quarter of 2006.

Metro area median existing-condo prices in the second quarter ranged from $116,400 in Greensboro-High Point, N.C., to $608,700 in the San Francisco-Oakland-Fremont area. The second most expensive condo market reported was Los Angeles-Long Beach-Santa Ana, at $413,400, followed by the San Diego-Carlsbad-San Marcos area at $368,600.

Other affordable condo markets include Wichita, Kan., at $117,900 in the second quarter, and Rochester, N.Y., at $118,900.

Regionally, existing-home sales in the Northeast fell 6.8 percent to an annual pace of 1.05 million units in the second quarter from the same period a year ago. The median existing single-family home price in the Northeast rose 0.7 percent to $298,000 in the second quarter from the same period 2006.

After Binghamton, N.Y., the strongest price increase in the Northeast was in the Allentown-Bethlehem-Easton area of Pennsylvania and New Jersey, with a median price of $274,500, up 12.8 percent from the second quarter of last year, followed by the Reading, Penn., area, at $157,800, up 11.2 percent, and Glenn Falls, N.Y., which rose 10.7 percent to $175,500.

In the Midwest, total existing-home sales dropped 8.4 percent to a 1.39 million-unit annual level in the second quarter compared with a year ago. The median existing single-family home price in the Midwest was $163,500, down 2.2 percent from the second quarter of 2006.

The strongest metro price increase in the Midwest was in the Bismarck, N.D., area where the median price of $151,400 was 9.2 percent higher than a year ago. Next was Gary-Hammond, Ind., at $137,800, up 7.3 percent from the second quarter of 2006, and Bloomington-Normal, Ill., at $161,500, up 7.0 percent.

Total existing-home sales in the South were at an annual rate of 2.31 million units in the second quarter, down 10.7 percent from the second quarter of 2006. The median existing single-family home price in the South was $185,000 in the second quarter, which is 1.6 percent below a year earlier.

The strongest price increase in the South was in the Beaumont-Port Arthur area of Texas, at $127,700, up 11.8 percent from a year ago, followed by the Cumberland area of Maryland and West Virginia, with a 9.3 percent gain to $109,300, and Raleigh-Cary, N.C., at $225,100, up 8.4 percent.

In the West, the existing-home sales pace of 1.16 million units fell 16.9 percent from the second quarter of 2006.

The median existing single-family home price in the West was $349,400 in the second quarter, down 0.4 percent from a year ago.

After Salt Lake City and Salem, the strongest metro price increase in the West was in Farmington, N.M., at $201,900, up 14.0 percent from a year ago, followed by the Spokane, Wash., area, at $197,700, up 10.4 percent from the second quarter of 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.

# # #

1Areas are generally metropolitan statistical areas as defined by the U.S. Office of Management and Budget. A list of counties included in MSA definitions is available at:
http://www.census.gov/population/estimates/metro-city/0312msa.txt

Regional median home prices include rural areas and samples of many smaller metros that are not included in this report; the regional percentage changes do not necessarily parallel changes in the larger metro areas. The only valid comparisons for median prices are with the same period a year earlier due to seasonality in buying patterns. Quarter-to-quarter comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns.

NAR began tracking of metropolitan area median single-family home prices in 1979; the metro area condo price series was launched at the beginning of 2006, with several years of historic data.

Because there is a concentration of condos in high-cost metro areas, the national median condo price sometimes is higher than the median single-family price. In a given market area, condos typically cost less than single-family homes. As the reporting sample expands in the future, additional area will be included in the condo price report.

Tables of metropolitan area median prices, percent changes and some historic data are available at the site below – under Research click on Housing Statistics, then scroll down the center to Metropolitan Area Prices.

2The seasonally adjusted annual rate for a particular quarter represents what the total number of actual sales for a year would be if the relative sales pace for that quarter was maintained for four consecutive quarters. Total home sales include single family, townhomes, condominiums and co-operative housing. NAR began tracking the state sales series in 1981.

Seasonally adjusted rates are used in reporting quarterly data to factor out seasonal variations in resale activity. For example, sales volume normally is higher in the summer and relatively light in winter, primarily because of differences in the weather and household buying patterns.

Tables of state resale rates, percent changes and some historic data are available at the site below under Research – click on Housing Statistics, then scroll down the center to State Existing-Home Sales.

Third quarter metro home price and state resale data will be released November 21.

Tuesday, August 14, 2007

What To Do When Wikipedia Goes Negative About Your Company

The "Search Engine Land" website has a useful article entitled, What To Do When Your Company Wikipedia Page Goes Bad, that discusses ways you can counter negative Wikipedia reporting, including bad stats, inaccuracies, legal stories you thought were water under the bridge and more.

Monday, August 13, 2007

Commercial Sector Cushions Fall in Some Cities

Even as the residential property sector continues to slow, the volume of commercial construction is picking up and actually cushioning the fall in such U.S. cities as Houston, Phoenix, and Las Vegas.

According to the latest Census Bureau data, the value of private, nonresidential construction spending soared 17 percent during the month of June to $346.6 billion, led by hotels, educational institutions, office buildings, and utilities.

Source: Wall Street Journal, Kelly Evans (08/13/07)

Majority of Adults Changed Lifestyle Due To Gas Prices

A recent WSJ.com/Harris Interactive poll found that 80% of adults have made changes to their lifestyle because of rising gas prices, with nearly 6 in 10 minimizing non-critical travel, 40 percent adjusting their spending habits and 32 percent putting a hold on leisure road-trip travel.
(Source: Harris Interactive)

Full Story (pdf)

Sunday, August 12, 2007

NJ Court Upholds Consitutionality of Highlands Ruling

A New Jersey appellate court issued a 35-page ruling on August 10, 2007 reaffirming the constitutionality of the Highlands Water Protection and Planning Act of 2004. The court rejected a claim by OFP, LLC concerning land development in a preservation area within Morris County. In arguing against the constitutionality of the Act, OFP did not apply for a hardship waiver on the property, which is a provision of the Highlands Act that allows for a waiver of the preservation area regulations in order to allow for just compensation. Therefore, the claim against the Act was rejected. (Source: NJAR)

For details, click here for corresponding the Highlands Council press release.

Friday, August 10, 2007

IRS Seeks New Issues for Industry Issue Resolution Program

WASHINGTON — The Internal Revenue Service is encouraging business taxpayers, associations and other interested parties to submit controversial or frequently disputed tax issues to the Industry Issue Resolution (IIR) Program.

The purpose of the IIR program is to clarify and recommend guidance that resolves an issue and benefits both taxpayers and the IRS by reducing the time and expense of resolving the issue through case-by-case tax examinations. Since the program began in 2000, there have been 89 submissions, of which 25 resulted in determinations that taxpayers can rely on.

While business associations and business taxpayers may submit tax issues for resolution at any time, in order to be considered during the fall review, submissions must be received by Aug. 31, 2007.

Business issues selected for consideration generally have two or more of the following characteristics:

* When assessing a common factual situation, interpretation of the tax regulations is uncertain.

* This uncertainty results in frequent, and often repetitive, examinations of the same issue among significant numbers of taxpayers.

* The uncertainty results in undue taxpayer burden.

* The issue is significant and affects a large number of taxpayers, either within an industry or across industry lines.

* The issue requires extensive factual development, and an understanding of industry practices and views of the issue would assist the IRS in determining proper and consistent tax treatment for the future.

Although there is no set format for submitting an issue for review, there are specific data that need to be included in the submission. The IIR project submission procedures are available in Revenue Procedure 2003-36. Interested parties should submit issues by e-mail to IIR@IRS.GOV.

Alternatively, submissions may be mailed or faxed to:

Internal Revenue Service, Office of Prefiling and Technical Services
Large and Mid-Size Business Division LM: PFT
Mint Building 3rd Floor M3-420
1111 Constitution Avenue NW
Washington, DC 20224

Fax: 202-283-8406

Source: IR-2007-141

Wednesday, August 08, 2007

Near-Term Home Sales to Hold in Modest Range

WASHINGTON - The housing market will probably hold close to present levels in the months ahead, according to the latest forecast by the National Association of Realtors®(NAR).

Lawrence Yun, NAR senior economist, said he isn’t looking for any notable changes in sales activity. “Existing-home sales should be relatively stable over the next few months, holding in a modest range, with some pent-up demand growing from buyers who’ve been on the sidelines,” he said. “Mortgage disruptions will hold back sales over the short term, but long-term fundamentals are favorable. A modest upturn is projected for existing-home sales toward the end of the year, with broader improvement to include the new-home market by the middle of 2008.”

Existing-home sales are forecast at 6.04 million in 2007 and 6.38 million next year, below the 6.48 million recorded in 2006. New-home sales are expected to total 852,000 this year and 848,000 in 2008, down from 1.05 million in 2006. Housing starts, including multifamily units, are likely to total 1.43 million in 2007 and 1.40 million next year, below the 1.80 million units started in 2006.

“With the population growing, the demand for homes isn’t going away – it’s just being delayed,” Yun said. “More buyers, and cutbacks in new construction, will eventually draw down the inventory levels and support future price appreciation, but general gains will be modest next year. Serious buyers today have a long-term view of housing as an investment – speculators have left the market.”

Existing-home prices should ease by 1.2 percent to a median of $219,300 in 2007 before rising 2.0 percent next year to $223,600. The median new-home price will probably fall 2.3 percent to $240,800 in 2007, and then rise 2.3 percent next year to $246,300.

The 30-year fixed-rate mortgage is forecast to average 6.7 percent in the fourth quarter and then ease to the 6.5 percent range next year.

Growth in the U.S. gross domestic product (GDP) is projected to be 1.9 percent this year, down from a 2.9 percent growth rate in 2006; GDP is expected to grow 2.8 percent next year.

The unemployment rate is estimated to average 4.6 percent this year, unchanged from 2006. Inflation, as measured by the Consumer Price Index, is likely to be 2.7 percent this year, down from 3.2 percent in 2006. Inflation-adjusted disposable personal income should rise 3.1 percent in 2007, the same as last year.

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 July will be released August 27; the Pending Home Sales Index is scheduled for September 5 and the next forecast will be September 11.

Tuesday, August 07, 2007

Home Buyers Want Oversized Garages Despite Rising Gas Prices

WASHINGTON - Home buyers in increasing numbers want garages with two or more spaces in their homes, according to the 2007 Profile of Buyers’ Home Feature Preferences, released today by the National Association of Realtors®(NAR).

Since the last survey in 2004, oversize garages saw the biggest growth in terms of what recent buyers considered very important in a home, gaining 16 percentage points to 57 percent. Among buyers who purchased homes without this feature, 56 percent of them said they would have paid more for an oversize garage, compared to only 6 percent in the 2004 survey.

Other priorities for today’s home buyers include air conditioning, with three out of every four respondents ranking this as “very important,” and a walk-in closet in the master bedroom, which was very important to 53 percent of respondents. Hardwood floors and granite countertops each gained 7 percentage points from the 2004 survey, with 28 percent and 23 percent, respectively, of buyers viewing these features as “very important.” Gaining 6 percentage points was cable/satellite TV-ready, at 46 percent.

The survey reports responses from buyers who purchased homes in 2006. Home buyers were asked about 75 features and room types to assess the importance of each.

“Realtors® see hundreds, if not thousands, of houses with their buyer clients every year and know exactly what buyers are looking for in a home,” said NAR President Pat V. Combs. “This insight is one more way Realtors® add value to the real estate transaction and why nearly eight out of 10 recent buyers used a real estate professional when buying their home.”

According to the survey, nearly six out of 10 recent home buyers took on remodeling or home improvement projects within three months of their purchase. Close to half of home buyers who remodeled or made improvements updated their kitchen, and nearly half remodeled or improved their bathroom. New homeowners spent a median of $4,350 on home improvement or remodeling projects undertaken within three months of purchase.

More than half of home buyers believe their home has high investment potential, and another four out of 10 believe it has moderate investment potential. Only 3 percent felt their home’s investment potential was low.

“The fact that a majority of home buyers quickly remodel key areas of their homes ties into the fact that their home is a good, long-term investment,” said Paul Bishop, NAR manager of real estate research. “Regardless of market conditions in the short term, when purchased for the long term, housing is one of the safest investments consumers can make.”

Energy efficiency was more important to new-home buyers than buyers of existing homes, with 65 percent of new-home buyers saying it was very important compared to 39 percent for buyers of existing homes. Older buyers placed a higher priority on energy efficiency than did younger buyers – 63 percent of buyers 75 and older said it was very important, but only 32 percent of buyers who were 18-24 agreed.

The survey identified some regional preferences in home features. For home buyers in the South and Midwest, central air conditioning was a priority, with 91 percent and 81 percent, respectively, saying this feature was very important. Sixty-six percent of buyers in the South thought a walk-in closet in the master bedroom was very important, while 61 percent of Midwesterners valued an oversized garage. In the Northeast, the highest percentage of buyers placed a premium on a backyard or play area (53 percent), followed by central air conditioning at 41 percent. Two-thirds of buyers in the West want oversized garages (66 percent), followed by central air conditioning at 59 percent.

Age was the biggest differentiation in what buyers were looking for in a home. Buyers 75 years old and older wanted a single-level home (74 percent) that was less than 10 years old (43 percent) with a walk-in closet in the master bedroom (74 percent). Most buyers between the ages of 25-34 wanted a backyard or play area (60 percent). More than half of buyers over 65 wanted a separate shower enclosure in the master bathroom, compared to only one-fourth of buyers ages 25-34.

For those who purchased a home without it, 65 percent of buyers said they would be willing to pay a median $1,880 extra for central air conditioning. One out of four buyers was willing to pay a median of $4,760 more for waterfront property.

Homes are getting bigger, but have fewer bedrooms. From 2004 to 2006, the size of the typical home purchased increased by about 100 square feet to 1,840 square feet, while the median number of bedrooms dropped from four to three during the same period. The median home age reported in the current survey is 12 years, down from 15 years in 2004.

To order a copy of the report, visit www.realtor.org/research and click on “Latest Research Products” or call 800/874-6500. The cost is $50 for members and $125 for non-members.

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

Bank Overdraft Loans Abuse Out Of Balance

Out of Balance: Consumers pay $17.5 billion per year

In a system enormously out of balance, fees for abusive overdraft loans have reach $17.5 billion per year, more than the loans themselves, which now amount to $15.8 billion per year.

In a recent Center For Responsible Leaning (CRL) report, "Out of Balance," finds that abusive overdraft loans, once the exception, are now the rule in a system where not-sufficient funds (NSF) fees–historically used to discourage overdrafts—have shrunk to 31 percent of overdraft-related fees. Abusive overdraft loan fees now account for 69 percent of those fees. (Source: CRL)

Full Story

Wednesday, August 01, 2007

Pending Home Sales Index Improves For June

WASHINGTON - A forward-looking indicator based on pending home sales shows the market is likely to stabilize in the months ahead, according to the National Association of Realtors®(NAR).

The Pending Home Sales Index*, based on contracts signed in June, was 5.0 percent higher from the downwardly revised May index of 97.5, but is 8.6 percent below June 2006 when it stood at 112.0. This 5.0 percent monthly gain is the largest in more than three years, since a 6.1 percent increase in March 2004.

Lawrence Yun, NAR senior economist, said it is encouraging that the increase occurred in all four major regions. “However, it is too early to say if home sales have already passed bottom,” he said. “Still, major declines in home sales are likely to have occurred already and further declines, if any, are likely to be modest given the accumulating pent-up demand.”

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 West increased 8.6 percent in June to 103.6 but was 5.5 percent below a year ago. In the Northeast, the index rose 3.1 percent from May to 96.0 but is 2.4 percent lower than June 2006. The index in the South increased 4.7 percent in June to 111.6 but was 12.7 percent below a year ago. In the Midwest, the index rose 3.5 percent in June to 92.5 but was 8.2 percent lower than June 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.

Real Estate Cyber Tips - August 2007

CYBER MAGIC TRICKS

TRICK#1

Voice Mail Super Tricks!
Think of the possibilities if you could have different voice mail greetings for different callers to your cell phone! A very professional one for your boss or clients. A wild and wooly one for you crazy friend. How about “This line has been disconnected” for your ex-friends? CNBC, the Chicago Sun-Times, New York Times and San Francisco Chronicle have featured this interesting service that replaces your cellular voice mail with a significantly better voice mail system that includes a set of cool new features like personalized greetings for each caller, online voice mail access, and complete control over who can leave you a voicemail. If nothing else, this is worth a visit just to listen to some of the clever voice mail messages these folks have put together for the asking. And guess what -- this service is on the house! Click Here for This Cyber Trick

TRICK#2

Use This Gem to Save Your Tail!
If you have never accidentally deleted files from your recycle bin – stick around! Companies get rich from offering recovery service and/or expensive software to recover from our boo boos. Now comes an undelete program that PC World Magazine rated “Very Good” that you can use to recover those deleted files in the blink of an eye. When you read the help file you will find that there are a couple of technical issues to be aware of, but the program looks a bit like Windows Explorer making it relatively easy to navigate. This is a good program to have available right after one of those “oops” moments. And, unlike the big expensive packages, this little gem is on the house! Click Here for This Cyber Trick

GREAT PLACES!

GREAT PLACE #1

Microsoft's Top Secret Project
Want to see the next level of computing? The folks at Popular Mechanics put together an extremely interesting video showing Microsoft’s new “Milan” project. Here you will see a demonstration of Microsoft’s new “Multi-Touch interface” that for now is built into a coffee-table design.You almost need to see the demo to appreciate how truly revolutionary this product is. You can upload files by simply placing a device – like a digital camera - on the table top. You can physically move files around with your hands. You can even enlarge or reduce the size of a photo image with the swipe of your fingers. Lots more and like they say – “You gotta see this to believe it!” Click Here for This Great Place

GREAT PLACE #2

Check Reviews Before You Buy - Visually
Want to get a quick and easy handle on how others have reviewed a product you are considering buying? These folks make it very easy – and if you are a visual person you can get an immediate read with their interesting bar graphics.They accomplish this using a new type of search engine that gathers and analyzes user reviews on the web, and then presents the results in easy to comprehend visual bar type summaries that run from red (bad) to green (good). You can search here for your product and see how users who reviewed that product rated it. You can also directly access the most helpful reviews and a lot of other pertinent information regarding that product or class of products.Great place! 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)