Realty Reality: December 2007

Sunday, December 30, 2007

Hybrid Car Buying Classes

C/Net's "Tricks & Tips" help section of it's web site offers free online introductory courses covering a wide variety of topics related to photography, mobile phones, automobiles, software, networks and more.

For example, Hybrid Car Buying 101 is a group of lessons that let their experts take you “under the hood” and explain how hybrid technology works, and if your next car should be a hybrid.

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).

Saturday, December 29, 2007

Seven Tips To More Confidence

There are many aspects to becoming more successful. An important component is confidence. A recent Realty Times article discusses seven powerful tips to more confidence. Before you create your next marketing plan, check your confidence level.

The seven confidence tips discussed in the article are:

Focus on What You Want. (Ask, "What DO I want?")
Tame your Inner Gremlin. (STOP; Take a Deep Breath; Replace with A Positive Thought.)
Clear your Inner Conflicts. (Overcome resistance.)
Create a Successful Future Self. (Visualize.)
Only engage in interactions that are win/win. (Listen to your gut/hunches.)
Practice extreme self care and self maintenance. (Protect your health and well being.)
Know that what you have to offer is valuable. (Believe in yourself and your services.)

Friday, December 28, 2007

New Year's Resolutions You Should Make

REALTOR Magazine offered tips for starting the year on solid ground for being organized, following up with clients, and reaching your sales goals. I believe they apply to any type of business. Following is the summary of those resolutions.

I resolve to...

Develop a business plan.

Create checklists and action plans for the upcoming year.

Plan out my marketing activities for the new year.

Get organized. Regarding you desk, take one of three F.A.T. actions:

F: File it!
A: Act on it!
T: Trash it!

Update and revise my sphere of influence list (S.O.I).

Read articles related to my profession.

Write down my goals down and look at them daily.

According to a Stanford University study, 80% of those set goals, wrote them down and ready them on a daily basis achieved their goals.

Thursday, December 27, 2007

This Slowdown We Can Handle

The economy is slowing. In the fourth quarter, GDP growth will have shrunk for the first time since the 2001 recession. The projected decline is only 0.4 percent, but it is nonetheless a decline. No worries though. (Source: NAR)

More Information . . .

New Terrorism Insurance Law Will Protect Commercial Market

WASHINGTON - The commercial real estate market and the health of the nation’s economy as a whole will benefit from the reauthorization of the federal government’s terrorism risk insurance program, which President George W. Bush signed into law on 12/26. The National Association of Realtors®(NAR) has long advocated for passage of the Terrorism Risk Insurance Revision (TRIA) Extension Act to maintain a strong commercial market.

"As the leading advocate for real estate issues, NAR commends President Bush and Congress for enacting the federal terrorism insurance backstop [H.R. 2761]," said NAR President Richard Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif. The potential unavailability of terrorism risk insurance would have had a devastating impact on many commercial financing agreements and could have negatively affected the commercial real estate market."

The terrorism insurance program, initiated after the September 11, 2001, terrorist attacks, has helped stabilize the commercial real estate industry. The new law will extend the program for seven years, covers both foreign and domestic acts of terrorism, retains the "trigger level" at $100 million of damages at which point federal assistance kicks in, and establishes a blue ribbon commission tasked with recommending a long-term private market solution.

"TRIA reauthorization will strengthen the economic security of the commercial real estate market by reducing the uncertainty of terrorism coverage availability and by covering many forms of terrorist activity," Gaylord said.

According to NAR, the best long-term solution should focus on what private markets have been unwilling or unable to do. "The ideal solution must allow businesses to purchase insurance for the most catastrophic conventional terrorism risks; provide adequate insurance capacity in all major commercial real estate markets, particularly in high-risk urban areas; and provide meaningful insurance against all types of terrorism risks," said Gaylord. "We believe this law does much of that."

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 residential and commercial real estate industries.

For additional information about the TRIA and H.R. 2761 (and other federal legislation) check out the following links:
GovTracks.us
LOC-Thomas
VoteSmart
OpenCongress
CBO Cost Estimate (PDF)

Tuesday, December 25, 2007

Merry Christmas and Happy Holidays!

Hoping you and your family have a warm, wonderful, Merry Christmas and Happy Holidays!

The Christmas season holds special meaning unique to each one of us. Here are resources celebrating from different persepctives the meanings, traditions, literature, music, food, fun, faith and family gatherings associated with this time of the year.

Christmas Celebrations, Traditions and Fun
Christmas History and Traditions - Worldwide
Christmas - What Is The True Meaning?
The Christmas Season - Origin, Traditions, Meaning
KIDiddles: Christmas Songs
Christmas History, Tree And The Origin of Santa Claus
Boundless: The Meaning Of Christmas
Orthodox: Meaning of Christmas
Christmas Wonderland - Links
Additional Christmas Links
Christmas (Xmas) Fun
Christmas History and Traditions From German-American Perspective
SantaLand - Christmas & Holiday Traditions and Customs
Christmas In South America
Christmas Symbols
Secrets of Success - The Story of Christmas
Story of Christmas - Wikipedia

Saturday, December 22, 2007

Christmas Lights At The Office

Below are a couple of shots of our office at night showing some of the Christmas lights...

Will attempt to get additional shots with a 'real' camera instead of my cell phone used to take the shots.

Wednesday, December 19, 2007

Commercial Real Estate Fundamentals Are Sound But Investment Slowing

WASHINGTON - The fundamentals in commercial real estate remain healthy with only slight increases in vacancy rates expected for the office and industrial sectors during 2008, although credit restrictions have recently slowed overall investment activity, according to the latest Commercial Real Estate Outlook of the National Association of Realtors®(NAR).

NAR Chief Economist Lawrence Yun said commercial fundamentals are essentially sound. “Although vacancy rates remain relatively low for all sectors, they are expected to rise slightly in the office and industrial markets during the coming year because much of the space being absorbed is in high-quality buildings or is built-to-suit,” he said. “As a result, there is a fair amount of older space on the market, particularly in the industrial sector where obsolescence is a factor, although industrial rents are showing healthy gains. Vacancy rates in the retail and multifamily sectors are projected to tighten in 2008 with rents rising in all sectors.”

Yun said the credit crunch has been impacting the market over the last few months, but 2007 is already a record for commercial real estate investment. “Tighter credit conditions will limit individual commercial real estate investment deals moving forward,” he said. “Because capitalization rates are already very low, it is likely that commercial property prices will ease. The era of rapid commercial property price increases has ended.”

A record $325.0 billion was invested in commercial real estate in the first 10 months of 2007, up from $306.8 billion for all of 2006; that total does not include transactions valued at less than $5 million or investments in the hospitality sector, based on analysis of data from Real Capital Analytics.

Patricia Nooney of Saint Louis, chair of the Realtors® Commercial Alliance, said commercial real estate investment is expected to stay historically strong. “Even with the credit crunch there’s been no significant impact on institutional investors, and it’s unrealistic to set new records every year in a cyclical business,” she said. “There’s been a shift in investment activity to foreign buyers, who are taking advantage of the dollar’s decline relative to other currencies. With many areas showing favorable fundamentals, commercial property in the U.S. has become very attractive to foreign investors.”

The NAR forecast in four major commercial sectors analyzes quarterly data for various tracked metro areas. The sectors are the office, industrial, retail and multifamily markets. Historic metro data were provided by Torto Wheaton Research and Real Capital Analytics.

Office Market

With jobs still being created, the demand for office space remains positive and is helping to absorb the more than 30 million square feet of new space becoming available in the current quarter. Investment grade office properties with solid income streams will be the most in demand by institutional investors, equity funds and foreign investors.

Since not all of the vacated space is being back-filled or leased, office vacancies are forecast to rise to 13.2 percent by the fourth quarter of 2008 from an estimated 12.9 percent in the current quarter; it was 12.6 percent at the end of 2006. Annual rent growth in the office sector should be 8.0 percent this year and 2.0 percent in 2008, after rising 5.2 percent in 2006.

Projections for the fourth quarter show areas with the lowest office vacancies include New York City; Honolulu; Tucson, Ariz.; Long Island, N.Y.; Los Angeles; and Riverside, Calif., all with vacancy rates of 10.0 percent or less.

Net absorption of office space in 57 markets tracked, which includes the leasing of new space coming on the market as well as space in existing properties, is likely total 55.4 million square feet in 2007 and 43.0 million next year, but below the 81.2 million in 2006.

Office building transaction volume in the first 10 months of this year totaled a record $173.5 billion, compared with $133.5 billion for all of 2006. So far this year foreign investors purchased $12.5 billion worth of office properties, with buyers from the Middle East and Germany accounting for half of that volume.

Industrial Market

The weaker dollar is fueling an increase in exports, but leasing activity has declined in port distribution hubs, and vacancy rates in those markets are edging up; some users are building or renting in secondary markets.

With abundant land and relatively low concerns regarding site remediation, secondary and tertiary markets are experiencing greater interest. So far this year, almost 16 percent of industrial investment has taken place outside of the 58 primary markets tracked.

Vacancy rates in the industrial sector are projected to average 9.4 percent in the fourth quarter and 9.5 percent by the end of 2008; vacancies averaged 9.4 percent in the fourth quarter of 2006. Annual rent growth will more than double to 3.3 percent by the end of 2007 and is seen at 1.3 percent a year from now, compared with a 1.4 percent annual gain at the end of 2006.

The areas with the lowest industrial vacancies include Los Angeles; San Francisco; Tucson; Orange County, Calif.; Portland, Ore.; and Las Vegas, all with vacancy rates of 6.1 percent or less.

Net absorption of industrial space in 58 markets tracked is expected total 127.4 million square feet in 2007 and 144.0 million next year, down from 205.4 million in 2006.

Industrial transaction volume in the first 10 months of 2007 was $35.8 billion, compared with $38.9 billion for all of 2006.

Retail Market

Even with a decline in consumer confidence, retail vacancy rates remain fairly stable. Declining production of new space will help improve fundamentals in this sector during 2008.

Vacancy rates in the retail sector will probably rise to 8.9 percent in the current quarter from 8.0 percent at the end of last year, and then ease to 8.6 percent by the fourth quarter of 2008. Average retail rent should grow by 2.2 percent this year and 1.9 percent in 2008, after rising 3.9 percent in 2006.

Retail markets with the lowest vacancies include San Francisco; Orange County, Calif.; San Jose, Calif.; Ventura County, Calif.; Washington, D.C.; and San Diego, all with vacancy rates of 5.5 percent or less.

Net absorption of retail space in 53 tracked markets is forecast at 18.6 million square feet for 2007 and 24.7 million next year, up from 10.5 million in 2006.

Retail transaction volume in the first 10 months of this year totaled $52.9 billion, exceeding the $46.9 billion for all of 2006. The Southeast is the most sought-out region this year.

Multifamily Market

The apartment rental market – multifamily housing – is experiencing increased demand from the slowdown in home sales. With a rising population and a growing number of households, vacancies are tightening and rents are rising.

Multifamily vacancy rates are projected to average 5.4 percent in the current quarter, down from 5.9 percent in the fourth quarter of last year, and then continue to decline to 5.1 percent by the end of 2008. Average rent is likely to rise 3.1 percent for 2007 and 3.8 percent next year, following a 4.1 percent increase in 2006.

Multifamily net absorption is expected to total 234,400 units in 59 tracked metro areas in 2007, below the 229,500 last year, but should rise to 245,800 in 2008.

The areas with the lowest apartment vacancies include Northern New Jersey, Salt Lake City, San Jose, San Diego, Nashville and Philadelphia, all with vacancy rates of 3.3 percent or less.

Multifamily transactions in the first 10 months of this year totaled $62.3 billion, compared with $87.4 billion for all of 2006. The sale of buildings originally constructed as condos are being sold to multifamily investors in markets like Washington, D.C., and South Florida. Many markets have seen condo “for sale” signs change to “apartment for lease” signs almost overnight. Some condominium complexes are being converted into office buildings, and others are becoming mixed-use projects.

The COMMERCIAL REAL ESTATE OUTLOOK is published by the NAR Research Division for the Realtors® Commercial Alliance. The RCA, formed by NAR in 1999, serves the needs of the commercial market and the commercial constituency within NAR, including commercial members; commercial committees, subcommittees and forums; commercial real estate boards and structures; and NAR affiliate organizations.

Organizations in the RCA include the CCIM Institute, the Institute of Real Estate Management, the Realtors® Land Institute, the Society of Industrial and Office Realtors®, and the Counselors of Real Estate. The RCA also provides commercial products and services.

Nearly 140,000 NAR members offer commercial services, and 73,000 of those are currently members of the RCA.

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 next Commercial Leading Indicator index will be February 20; the next commercial real estate market forecast is scheduled for March 12.

Sunday, December 16, 2007

How To Avoid Mortgage Fraud

If you are struggling to meet your mortgage payments and are concerned about the possibility of facing foreclosure, then you may need to seek help. There are many reputable organizations to whom you can turn to for help and guidance. Unfortunately, there are many organizations and individuals who are scam artists, preying on innocent borrowers at their greatest time of weakness and desperation.

According to Freddie Mac, "Mortgage fraud is becoming more common. To protect your home and your home equity it is important to understand and recognize the signs of mortgage fraud. It's also important to know how to report fraud to state and federal authorities so they can stop scam artists from preying on innocent borrowers."

Click here for Freddie Mac's Mortgage Fraud Information Page for reliable guidance in seeking out appropriate information and help and to avoid fraud being committed against you.

Just remember that it is important to take appropriate actions as soon as possible, otherwise you will have less and less options the longer you wait.

If you encounter fraud, then report it immediately to 1-800-4FRAUD8 (1-800-437-2838).

Check out their Mortgage Fraud 101 Video

Saturday, December 15, 2007

Proposed Fire Supression Regulation Will Impose New Costs

NJAR® counsel submitted comments on behalf of the Association concerning the New Jersey Department of Community Affairs’ (DCA) amendments to the State Fire Prevention Code. One of the amendments to N.J.A.C. 5:70-4.17 requires existing highrise buildings of Group B (business or office) and Group R-2 (residential) to be equipped with an approved automatic fire suppression system installed in accordance with the Uniform Construction Code. The proposed rule allows four years for highrise building owners and tenants to comply.

The comments illustrate the enormous costs that Group B and R-2 property owners and possibly tenants would face in retrofitting their buildings with approved fire suppression systems and emphasize that retrofitting the buildings is not necessary according to the International Fire Code.

For more details, view the the rule proposal.

Source: NJAR

Thursday, December 13, 2007

Preparing Your Home for Holiday Guests

While the holiday season can bring great joy, it likewise has the ability to cause stress and frustration. Frantic shopping trips, hectic work deadlines, holiday traffic and winter weather (to name a few) are all cause for frayed nerves and shortened fuses come December. For those hosting holiday festivities at home, even more pressure is added.

Holiday guests are in a way like the holidays themselves: they bring you happiness, but at the same time can be a source of profound anxiety. So how do you welcome friends and family members into your home without losing your composure (and without making them feel like a burden)? The key is to start planning early.

The Basics

Know your plan - You don't have to have an itinerary for every minute of holiday festivity, but you should know have a general plan of attack. Make sure you have a grasp on the essentials - what you're cooking, when you're expecting guests, what activities may or may not be involved, and last but not least, what you need help with.

Know the players - Part of hosting an event is knowing what to expect from your guests. How many guests are you expecting? Are you expecting overnight guests, and if so, how many? Do you have adequate sleeping arrangements for all of the overnighters, or will alternate housing be needed? Are their transportation needs for any out-of-towners? Do any of the guests have special dietary or medical requirements?

Communicate! - The smartest (and ultimately, sanest) hosts keep their guests informed and aren't afraid to delegate important tasks. Your guests will appreciate being kept in the loop, and any work you can pass on will be that much less on your mind.

Maintenance in Advance

By checking for any need repairs or tweaks ahead of time, you won't have to worry about unpleasant surprises as the big day draws near.

Make sure outdoor walkways are clear and that all handrails are secured tightly.
Many homeowners use the garage far more than the front door. Check to make sure all outdoor lighting is working.
Check the bathroom fan for proper ventilation.
Run the shower in the guest bathroom, checking the showerhead for leaks. Guest showers are often overlooked by homeowners if used infrequently.
Lubricate any squeak door hinges, and look for doors that stick or don't close fully.
Open any floor or ceiling registers, clearing them of debris. This may also be an opportune time to replace the filter on your furnace or heat pump.
If you own ceiling fans, make sure they work without wobbling or squeaking. You may be able make minor repairs, but exercise caution and call in a professional if you feel uneasy.
Check the batteries in all smoke detectors. A chirping detector is sure to ruin someone's night of sleep.
If you don't already own a small fire extinguisher, purchase one and store it in an easily accessible location.
Look under all sinks for signs of leakage. The strain of additional houseguests can turn a nagging problem into a sudden disaster.
Purchase and install a simple carbon monoxide detector if you don't already own one.
If you own a wood-burning fireplace, your chimney should be cleaned every few years to prevent dangerous creosote buildup. Check to see when you last had the chimney cleaned before starting a fire.

The Week Before

Now's the time to make sure your home is guest-ready (some would say "guest-proof").

Entrance

Create an area to collect all winter jackets and warm weather gear. Add extra hangars to your coat closet and clear out any of your own coats that can be temporarily stored elsewhere. If you don't have a coat closet or space constraints are a concern, designate a room to collect jackets and scarves instead. You may also wish to consider an extra interior doormat for wet boots and shoes.

Living Area

Clean the windows inside and out.

Consider shampooing the living room carpet (easy-to-use rental units can be found in most supermarkets and home improvement stores).

Move breakable knick-knacks and decorations from low shelves or tables to more protected locations.

Bathrooms

Check to make sure you have plenty of extra towels, and that the guest bathroom is stocked with the essentials.

Have a few extra new toothbrushes in the house in case of forgetful guests or airport incidents.

Kitchen/Dining Room

Check to make sure all of your appliances are in working order.

If you'll be serving dinner, verify that you have enough seating for all of your guests. Unless your event is a formal occasion, you should be able to get by with relatively cheap folding chairs for extra seating. Talk to any guests bringing young children to see if they're bringing any special seating (booster seats, high chairs, etc.).

Make a list of where key items are located in your kitchen. Once guests are in your home this will allow people to help themselves when needed, and also to lend you a hand when it comes time for food preparation or cleanup!

Guest room(s)

Guest rooms can often be "out of sight, out of mind" for homeowners. The best way to know if you're ready for overnight guests is to spend a night (or two) in your guest room.

Is there enough ambient light at night for your guests to move around safely? If not, consider adding a nightlight.

Make sure the bedside table or nightstand includes an alarm clock and reading lamp. Check the lamp to ensure that it provides adequate lighting for nighttime reading.

Often the bed in the guest bedroom is older and less comfortable than others in the house. How good a night's sleep does your guest bed provide? If your guest bed is a little less than cozy, add a soft mattress cover. They're inexpensive and can make a questionable mattress much more comfortable.

Outfit guest beds with fresh linens, and always keep an extra blanket in every guest bedroom for guests who "sleep cold".

Clear some space in the closet or a dresser drawer to allow your guests to unpack a little. No one likes to live out of a suitcase, and allowing them extra room will make them feel more welcome.

Consider leaving magazines or books of short stories in your guest rooms. Not everyone goes to sleep on the same schedule, so providing your guests with a little night time reading material is a thoughtful gesture.

If you have out-of town visitors, think about providing a local map with your home and a few key destinations noted.

The Day Of

If you're expecting guests throughout the day, prepare a few dishes for each meal that can be made in advance and left out to snack on. For example, you can set out a coffee cake and a baked omelet for breakfast. Also consider having your guests provide the throughout-the-day fare, freeing you up to focus on dinner.

If you're too busy with other tasks to greet each and every guest, assign a family member or one of the early arrivals to the job.

The Next Day

The after-holiday period is all about relaxation, so keep it simple when it comes to your stay-over guests.

Set your coffee maker to brew earlier in the morning than you normally would choose to greet any early-risers. If your coffee maker can't be programmed for a timed brew, set it up so it's ready to go and leave a note attached.
Serve a continental breakfast: milk and fresh juice, bagels, pastries, muffins and fresh fruit. Set out plates, bowls and utensils, along with the toaster/toaster oven. Put condiments such as jam and butter in small bowls for presentation. Cereal is another good idea, and variety packs of cereal work well when you have multiple house guests.

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.

Expanded Lead Paint Legislation Heads to NJ Governor

If you are a property owner and landlord renting single-family and two-family residential units, you will soon be subject to inspections for lead-based paint just as three-or-more-unit dwellings are currently required once the governor signs new legislation that was recently sent his way...

The New Jersey Senate and Assembly have approved legislation that will expand the scope of lead paint inspection requirements for multiple dwelling units to also include single-family and two-family rental dwelling units. The bill now heads to the Governor's desk.

Currently, state law provides that multiple dwellings are inspected at least once every five years for lead paint hazards.

According to the bill, A3263/S2622, the Department of Community Affairs (DCA) will charge a fee sufficient to cover the cost of inspections, provided that the fee does not exceed one-third of the inspection fee for a three-unit multiple dwelling. T

he bill includes exemptions for owner-occupied two-family residential properties, properties that have been certified to be free of lead-based paint or of having a lead-free interior by a certified inspector, properties that were constructed during or after 1978, and seasonal rental units that are rented for less than six months duration each year.

Source: NJAR

State Convenes Hearing on Affordable Housing

The Assembly Housing and Local Government Committee held its first meeting on the 12-point affordable housing plan presented by Committee Chair Jerry Green (D22), Assembly Speaker Joseph Roberts (D5) and Assembly Majority Leader Bonnie Watson Coleman (D15). Department of Community Affairs Commissioner Joseph Doria testified regarding the amount of undeveloped land in New Jersey and its relation to the lack of affordable housing. He focused particularly on the need to ease the environmental rules and regulations in order to construct more affordable housing.

Read the December 11 Star-Ledger article on the meeting.

Source: NJAR

Monday, December 10, 2007

Existing-home sales are projected to trend up in 2008

WASHINGTON - Existing-home sales are projected to trend up in 2008, with pending home sales showing a slight near-term rise, according to the latest forecast by the National Association of Realtors®(NAR). However, a recovery for new-home sales is unlikely before 2009.

Lawrence Yun, NAR chief economist, said the worst part of the credit crunch has already worked its way through the data. “The unusual mortgage disruptions that peaked in August were clearly seen in lower home sales that were finalized in September and October, so the market was underperforming,” he said. “Now that mortgage conditions have improved, some postponed activity should turn up in existing-home sales over the next couple of months, and I expect sales at fairly stable to slightly higher levels.”

The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in October, increased 0.6 percent to an index of 87.2 from an upwardly revised reading of 86.7 in September. It was the second consecutive monthly gain, but remained 18.4 percent below the October 2006 index of 106.8. “The broad trend over the coming year will be a gradual rise in existing-home sales, but because sales are exceptionally low in the final months of 2007, total sales for 2008 will be only modestly higher than 2007,” Yun said.

The PHSI in the Northeast jumped 16.0 percent in October to 80.6 but is 11.1 percent below a year ago. In the West, the index rose 8.4 percent to 87.3 but is 16.9 percent lower than October 2006. The index in the Midwest slipped 1.4 percent in October to 85.5 and is 11.7 percent below a year ago. In the South, the index dropped 7.8 percent in October to 91.6 and is 25.3 percent below October 2006.

“The improvement in the Northeast reaffirms a trend apparent for some months now that shows signs of recovery, noteworthy because that was the first region to slump, and the gain in the West indicates some easing of interest rates for jumbo loans,” Yun said. “Lawmakers need to understand that raising the loan limits on FHA and GSE-backed conventional loans will markedly improve mortgage availability.”

Existing-home sales are likely to total 5.67 million this year, the fifth highest on record, rising to 5.70 million in 2008, in contrast with 6.48 million in 2006. Existing-home prices should be down 1.9 percent to a median of $217,600 for all of 2007, and then rise 0.3 percent to $218,300 in 2008.

“Home price growth in the vast affordable midsection of America will help raise the national median existing-home price slightly in 2008. I then expect price appreciation to return to more normal patterns in 2009, perhaps rising one or two percentage points above the rate of inflation,” Yun said.

“Even with a modest decline in the national aggregate price this year, it’s important to keep in mind that nearly two-thirds of the metro areas in the U.S. are showing price increases,” he said. “The apparent disparity results from fewer sales in high-cost markets, so a change in the mix of sales is dragging down the national median home price.”

Areas showing healthy price gains include disparate markets such as Gary-Hammond, Ind.; Binghamton, N.Y.; Corpus Christi, Texas; and Spokane, Wash. “We can’t emphasis enough how much local conditions vary, even within a given area, so it’s important for consumers to make decisions based on local market conditions.”

New-home sales are forecast at 788,000 this year and 693,000 in 2008, down from 1.05 million 2006; no sustained improvement is seen for new homes until 2009. Because builders have correctly adjusted production, housing starts, including multifamily units, will probably total 1.36 million this year and 1.16 million in 2008, down from 1.80 million last year. The median new-home price is projected to drop 3.0 percent to $239,100 for 2007, and then decline another 0.2 percent to $236,600 in 2008.

The 30-year fixed-rate mortgage is estimated to rise slowly to the 6.4 percent range by the end of 2008, with additional cuts in the Fed funds rate lowering short-term interest rates.

Growth in the U.S. gross domestic product (GDP) should be 2.1 percent in 2007, down from a 2.9 percent growth rate last year; GDP growth is forecast to improve to 2.4 percent in 2008.

The unemployment rate is likely to average 4.6 percent for 2007, unchanged from last year, but rise to 5.0 percent in 2008. Inflation, as measured by the Consumer Price Index, will probably be 2.8 percent this year and 2.7 percent in 2008, down from 3.2 percent in 2006. Inflation-adjusted disposable personal income is estimated to grow 3.1 percent this year, the same as in 2006, and then grow 2.2 percent next 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.

# # #

*The Pending Home Sales 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.

The 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.
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.

Existing-home sales for November will be released December 31; the next Forecast / Pending Home Sales Index will be released January 8.

Friday, December 07, 2007

Five Ways To Capitalize On Home Energy Efficiency Improvement Tax Credit

U.S. homeowners have just one month to utilize a soon-to-expire federal tax credit aimed at encouraging home energy efficiency. According to a recent RISMedia article, there are 5 ways to take advantage of the Home Energy Efficiency Improvement Tax Credit:

1 - Add attic and/or basement insulation.

2 - Install or replace exterior windows and skylights with energy-efficient versions.

3 - Trade in older storm doors and exterior doors for newer, energy-efficient versions.

4 - Replace an old furnace.

5 - Install a solar energy system.

(Source: RISMedia.com)

See full article for more Information . . .

Thursday, December 06, 2007

It's A Great Time To Be A Home Buyer

It is a good time to be a home buyer, due to current conditions. Richard Gaylord, President of the NAR, discussing why real estate is a long-term investment, the problems facing the market today and why now is a good time to buy. (Source: NBC )

View Clip . . .

Slight Rise for New Home Sales In October

Sales of new single-family U.S. homes rose 1.7 percent in October from a September level that was revised down sharply while the median sales price plunged, according to a government report Thursday that showed ongoing weakness in the ailing housing sector. (Source: MSNBC )

More Information . . .

Plan to Help Homeowners Unveiled By Bush

The Bush administration has come up with a plan to help strapped homeowners facing a daunting jump in their monthly mortgage payments. The plan will freeze certain subprime mortgages for 5 years, a compromise hammered out with mortgage lenders and banking regulators. (Source: CNN Money.com )

More Information . . .

Tuesday, December 04, 2007

Title Insurance Outlook Is Stable With Improvements Expected in 2009

A recent Fitch Ratings report is stating that the rating outlook for the US Title Insurance industry is Stable, despite a continued lessening of revenues, and more importantly margins, caused by it's ties to mortgage and real estate markets which are projected to see continued deterioration in 2008.

According to Fitch, cost cutting efforts implemented this year by the underwriters is starting to have a positive effect in dampening the lessening of margins. It expects a moderate (3-5%) decrease in margins in 2008 with improvements beginning in 2009. However, because of strengthened financials provided by the previous prosperous years, Fitch believes that Title Insurance companies are relatively well positioned to get through the down cycle.

The rise in foreclosures, while increasing the possibility of title claims, does not directly result in title claims. Any increase in claims should be within the norms predicted by underwriting and offset by existing coverage premiums.

Family mortgage originations fell by 15% in 2007, with the reduction divided almost equally between purchases and refinancings. "According to Freddie Mac, the average 30-year fixed mortgage rate has moved within a tight band between 6.2% and 6.7% during 2007 and is currently 6.4%. The MBAA forecast a small increase in mortgage rates during 2008 to 6.8% and holding essentially steady through 2009."

The current inventory of new and existing homes is 10 months, compared to the record low of 3.6 months in January 2005. This indicates that it will take some time for the inventory to clear out to healthier norms. The biggest concern is weather the U.S. economy will be pulled into a recession by the real estate sector.

Monday, December 03, 2007

2007 Remodeling Cost vs. Value Report

WASHINGTON - Many buyers judge a house by its exterior, or so it seems from the results of the 2007 Remodeling Cost vs. Value Report. Three of the four projects with the highest national percentage of costs recouped this year were exterior upgrades.

The most profitable project on the national level was upscale siding replacement, recouping 88 percent of costs upon resale. Wood deck additions and wood window replacements also returned more than 80 percent of costs, at 85 percent and 81 percent, respectively. On a national average, the only interior project to return more than 80 percent of remodeling costs this year was a minor kitchen remodel, returning 83 percent of project costs at resale.

“The results of this year’s Cost vs. Value report underscore the importance of curb appeal in the buyer’s eye,” said NAR (National Association of Realtors®) President Dick Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif. “Realtors® know what attracts buyers in their local markets and can help your house put its best façade forward, so to speak – it’s another way Realtors® add value to the real estate transaction.”

The 2007 Remodeling Cost vs. Value Report compares construction costs with resale values for 29 midrange and upscale remodeling projects comprising additions, remodels and replacements in 60 markets across the country. Data are provided for nine U.S. regions, following the divisions established by the U.S. Census Bureau. This is the 10th consecutive year that the report, which is produced by Hanley Wood, LLC, was completed in cooperation with REALTOR® Magazine, as Realtors® provided their insight into local markets and buyer home preferences within those markets.

Four new projects were added this year: the aforementioned wood deck addition, a back-up power generator, and both a midrange and upscale garage addition. Nationally, the back-up power generator only returned 58 percent of the investment on resale, although the return was highest in the West South Central region, which comprises Arkansas, Louisiana, Oklahoma, and Texas, at 68 percent. Buyers in the Pacific region of Alaska, California, Hawaii, Oregon and Washington value their garages: The midrange garage addition returned nearly 70 percent nationally but 88 percent in this region, while the upscale garage addition returned approximately 65 percent nationally but 78 percent in this area.

Homeowners in the Pacific region could also expect to see some of the highest percentages of remodeling expenses returned at resale, with 13 of the 29 projects returning 90 percent or higher of project costs. Homeowners in the East North Central region of Illinois, Indiana, Michigan, Ohio and Wisconsin might expect some of the lowest returns; only one project – upscale fiber cement siding – returned more than 80 percent upon resale (82 percent of costs recouped), while nine projects returned less than 60 percent of project costs.

The least profitable projects were a back-up power generator, sunroom addition, and home office remodel. The back-up power generator returned the lowest percentage of initial cost in the East North Central, New England (Connecticut, Massachusetts, Maine, New Hampshire, Rhode Island, and Vermont), Pacific, and West North Central (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota) regions.

Sunrooms are least popular in the East South Central (Alabama, Kentucky, Mississippi and Tennessee), Mountain (Arizona, Colorado, Idaho, Montana, Nevada, New Mexico and Wyoming), and West South Central regions. Home office remodels return the lowest percentage of project costs in the Middle Atlantic (New Jersey, New York and Pennsylvania) and South Atlantic (Delaware, District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia and West Virginia) regions.

Gaylord explained that the resale value of any given remodeling project depends on a variety of factors. “When considering a remodeling project, particularly with an eye toward resale, it’s important to evaluate your home’s current condition, how the project will change the existing space in your home, as well as how your remodeled home will compare to other homes in your community,” said Gaylord.

“For example, using a breakfast nook to expand the kitchen seems like a good use of space, but using the same space to add a first-floor bathroom in an older home that doesn’t have one will draw more buyers,” Gaylord said. “Realtors® see hundreds, if not thousands, of homes every year with their buyer clients and can provide valuable insight into what projects and improvements will make a difference with buyers in your area.”

Results of the report are summarized in the December 2007 issue of REALTOR® Magazine. To read the full project descriptions, access national and regional project data, and download a free PDF containing data for any of the 60 cities covered by the report, visit www.costvsvalue.com. “Cost vs. Value” is a registered trademark of Hanley Wood, LLC.

Hanley Wood, LLC, is the premier media company serving housing and construction. Through four operating divisions, the company produces award-winning magazines and Web sites, marquee trade shows and events, rich data, and custom marketing solutions. The company also is North America’s leading provider of home plans. Founded in 1976, Hanley Wood is a $240 million company owned by JPMorgan Partners, LLC, a private equity affiliate of JPMorgan Chase & Co.

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.

Saturday, December 01, 2007

Real Estate Cyber Tips - December 2007

CYBER MAGIC TRICKS

TRICK#1

Would You Make it in the Big Leagues?
Want to see how you would stand up to a 90 mph fastball thrown by a major league pitcher? This site will test your reaction time to see how you would make out in the big leagues. This is a good place to see how the old reflexes are working when you see the "swing batter" screen. Depending on your reaction time you will be rewarded with a strike, a ball, a hit or, if you have the reflexes of Superman – a home run. Cheaper than going to the Neurologist – and a heck of a lot more fun!
Click Here for This Cyber Trick

TRICK#2

Be an Instant Wizard!
Want to wow your company with a magic show for the holidays? Here’s an easy on-line trick you can amaze your friends with --- and you don’t even have to know how it works! Someone reportedly tried this out on the Great Houdini and even fooled the great one. Try it and have some fun for the holidays. Guaranteed to blow your mind!
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GREAT PLACES!

GREAT PLACE #1

Evaluate Charities With Ease!
It’s the time of year when folks open their wallets and pitch in to help the many worthwhile charities. But how can you be sure that the group you are considering is functioning responsibly and on an economically sound basis? You can get help at this great place which is the nation's largest and most utilized evaluator of charities. Their team of professional analysts examines thousands of America's best-known charities to help you with your charitable decisions. The site is easy to navigable by charity name, location or type of activity and also features donation tips, along with top-10 and bottom-10 lists which rank efficient and inefficient organizations in a number of categories.Time Magazine, Forbes, Reader's Digest and Kiplinger's all agree that this is one great place.
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GREAT PLACE #2

How Stuff Works!
Ever wonder how TIVO sets work? How users set them up to skip through commercials? How the banking system insures your deposits? How REITs Work? Why snow is white? This great place has all the answers and is organized in sections like Communication, Computer, Electronics, Entertainment, Food & Recipes, Health, Home & Garden, Money, Business ,Credit and Debt, Financial Planning, People, Science and Travel -- just to name a few. Or you can do a simple word search to find out how Oliver R. Smoot became a standard of measurement.Worth book marking for the day you really need to know how stuff works.
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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.

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