Realty Reality: December 2009

Thursday, December 31, 2009

Census Bureau Projects U.S. Population of 308.4 Million on New Year’s Day 2010

On the eve of the 2010 Census, as the Census Bureau prepares to conduct an actual count of the nation’s population, the bureau projects that on Jan. 1, 2010 — three months out from Census Day — the total U.S. population will be 308,400,408. This would represent an increase of 2,606,181, or 0.9 percent, from New Year’s Day 2009. In January 2010, one birth is expected to occur every eight seconds in the United States and one death every 12 seconds.

(More) (U.S. Population Clock) (2010 Census)

Visit my web site for real estate services and support: LawrenceYerkes.com [NJ/PA]

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

Monday, December 21, 2009

Singing Santa and Reindeer: White Christmas

If you are in the Northeast this year, you don't have to dream about a white Christmas, it will be a reality!

However, this perennial online Christmas card favorite, based on a classic golden oldies version of White Christmas with animation from Joshua Held of the UK, is still fun to watch and of course, listen...

[Link -1] [Link-2]

Visit my web site for real estate services and support: LawrenceYerkes.com [NJ/PA]

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

Saturday, December 19, 2009

Welcoming Holiday Guests Opens The Door To Added Home Injury Risks

The Home Safety Council® Encourages Families to Keep Safety at the Top of their Holiday List to Protect Guests of All Ages from Injuries

As the holiday countdown draws closer, many families are busy preparing to welcome friends and relatives of all ages into their homes. In fact, a recent study by the national nonprofit Home Safety Council found that more than 40 percent of adults plan to host friends and family in their homes this holiday season.

Before hanging the mistletoe and finalizing the holiday menu, the Home Safety Council urges families to take another look at the safety of their home. Evaluating each room of the home from a different point of view is especially important for those welcoming older adults and young children, two of the age groups most at risk for home injuries.

“The holiday season can be hectic and when several generations come together under one roof, it’s important to take special precautions to keep everyone safe,” said Meri-K Appy, president of the Home Safety Council. “To keep an injury from spoiling your holiday gathering, set aside time to take a quick safety tour of your home and make the simple changes needed to correct any hazards before your first guest arrives.”

Protect Holiday Guests of All Ages from Home Injuries

A few simple changes like storing medicines, cleaning supplies, and matches and lighters in a locked place where children cannot see or touch them and installing grab bars in tubs and showers, can go a long way toward keeping all holiday guests safe. Follow the Home Safety Council’s recommended safety steps below to help everyone in your home enjoy an injury-free holiday season.

Check the lights over all stairways, hallways, porches and entries to ensure all bulbs are working and are bright enough.

Stick to the maximum safe wattage, which is often printed inside the light fixture.

Put non-slip strips or rubber mats in all tubs and on shower floors.

Put sturdy grab bars inside the bath and shower area. Towel holders are not strong enough to support weight – don’t use them as grab bars.

Place nightlights inside bathrooms and in the hallways leading to them.

If your guests will include babies and toddlers, get safety gates. Place them at the tops and bottoms of stairways.

If you have an attached garage and/or fuel-burning heat or appliances, you need a carbon monoxide (CO) detector. Install one on every level of your home, especially near sleeping areas.

Put emergency numbers by every telephone. These include 9-1-1 and the National Poison Control Hotline – 1-800-222-1222.

Look for products in your home with the words “Caution,” “Warning,” “Danger,” “Poison,” or “Keep Out of Reach of Children” on the label. Lock products with these words on the label up high and keep them away from food and drinks.

Stay in the kitchen when anything is cooking on the stove.

Keep anything that can burn at least three feet away from space heaters.

Make sure there is at least one working smoke alarm on every level of your home. If your smoke alarms are 10 years old or more, replace them with new alarms (they don’t last forever!).

Push the test button to make sure all smoke alarms work. Put a new battery in any alarm that doesn’t signal during the test.

If you have not put a new battery in each alarm within the past year, do it now.

When guests arrive, walk through your home fire escape plan with them. Point out all the exits. Show guests where to meet you at your outside meeting place If possible, have older adults sleep in a bedroom on the ground floor.

Prevent hot water burns by turning your water heater temperature to 120˚Fahrenheit.

Use toilet seat locks if children live in or visit your home. Use a door knob cover or put a high lock on the outside of bathroom doors to keep children out when you are not with them.

Be aware that buckets, spas, pools/ponds, tubs and all standing water are a serious drowning risk for very young children.

Children can choke on small things like buttons, coins, jewelry and toys. If something is small enough to fit in a toilet paper tube, it is not safe for little children. Make sure these items are put away out of children's reach before babies or toddlers come to visit.
Read the labels of all toys before you let children play with them. Make sure the child is old enough to use that toy. The label will tell you the safe age.

For more information and resources on how to stay safe during the holiday and winter season, visit

www.homesafetycouncil.org.

Visit my web site for real estate services and support: LawrenceYerkes.com [NJ/PA]

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

Friday, December 18, 2009

Exterior Remodeling Proves Best Bang for Your Buck, Realtors® Report

Despite a slow market and a slight decrease in the resale value of most remodeling projects, Realtors® report that the smartest home improvement investments may also be some of the least expensive. Results from the 2009 Remodeling Cost vs. Value Report show that small-scale exterior projects are the most profitable at resale, according to estimates by Realtors® who completed a recent survey.

On a national level, eight out of the top 10 projects in terms of costs recouped were exterior replacement projects that cost less than $14,000. Certain types of door and siding replacements, as well as wood deck additions all returned more than 80 percent of project costs upon resale. A steel entry door replacement – a new addition to this year’s list – recouped 128.9 percent of costs, followed by upscale fiber-cement sliding replacements at 83.6 percent. Wood deck additions recouped 80.6 percent of costs.

“Once again, this year’s Remodeling Cost vs. Value Report highlights the importance of a home’s first impression,” said NAR President Vicki Cox Golder. “With exterior projects returning a high percent of project costs upon resale, Realtors® can help give your home curb appeal while adding value to the real estate transaction.

The 2009 Remodeling Cost vs. Value Report compares construction costs with resale values for 33 midrange and upscale remodeling projects comprising additions, remodels and replacements in 80 markets across the country. Data are grouped in nine U.S. regions, following the divisions established by the U.S. Census Bureau. This is the 12th 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.

On a national level, the project with the biggest improvement from 2008 was the attic bedroom addition, recouping 83.1 percent of remodeling costs compared to 73.8 percent in 2008. The only other interior project that landed in the top 10 was a minor kitchen remodel with 78.3 percent costs recouped.

Other exterior projects in the top 10 include midrange vinyl and upscale foam-backed vinyl sliding replacements, which returned more than 79 percent of costs. In addition, several types of window replacements – midrange wood, midrange vinyl, and upscale vinyl – all returned more than 76 percent of costs upon sale.

Similar to last year’s report, the least profitable remodeling projects in terms of resale value were home office remodels and sunroom additions, returning only 48.1 percent and 50.7 percent of project costs.

Regionally, cities in the Pacific states of Alaska, California, Hawaii, Oregon and Washington once again outperformed the rest of the nation in terms of remodeling costs recouped upon resale. The West South Central region of Arkansas, Louisiana, Oklahoma, and Texas; the East South Central region of Alabama, Kentucky, Mississippi and Tennessee; and the South Atlantic region of the District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia and West Virginia also performed relatively well.

The regions that generally returned the lowest percentage of costs were New England (Connecticut, Massachusetts, Maine, New Hampshire, Rhode Island and Vermont), East North Central (Illinois, Indiana, Michigan, Ohio and Wisconsin), West North Central (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota), and the Middle Atlantic (New York and Pennsylvania).

Golder commented that remodeling projects are just one of many factors that contribute to a home’s overall resale value. “As the first, best source for real estate information, Realtors® are experts in providing insight into what projects and investments will make a difference in your house. It’s important to consult with a Realtor® who can explain the variety of factors that affect a home’s value, such as location, condition of surrounding properties and the regional economic climate,” she said.

Results of the report are summarized in the January 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 80 cities covered by the report, visit http://www.remodeling.hw.net/2009/costvsvalue/national.aspx.
“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 1.2 million members involved in all aspects of the residential and commercial real estate industries.

EIA News Releases

Below are recent news available from the U.S. Energy Information Administration:

Wholesale Market Data — Dec 17, 2009
This site contains spreadsheets with wholesale electricity price data from the Intercontinental Exchange through December 11, 2009 (latest web site update: December 17, 2009). The files contain peak prices, volumes, and number of transactions at six electricity trading hubs covering most regions of the United States.

Electric Power Monthly September 2009 data — Dec 16, 2009
The latest EPM issue (December 2009) is now available on EIA's Electricity page. Data are for September 2009, during which net generation in the United States dropped by 3.0 percent and consumption of coal for power generation was down by 13.8 percent compared to September 2008. The average retail price of electricity for September 2009 was 10.21 cents per kilowatthour (kWh), 1.8 percent lower than August 2009 when the average retail price of electricity was 10.40 cents per kWh, and 1.3 percent lower than September 2008, when the price was 10.34 cents per kWh. Historical copies of the EPM tables in Excel format are located at: http://www.eia.doe.gov/cneaf/electricity/epm/epm_ex_bkis.html

Field Level Storage Data from Form EIA-191A — Dec 14, 2009
Field Level Storage Data from Form EIA-191A has been updated through 2008 with capacity and deliverability information.

Annual Energy Outlook 2010 Early Release Overview — Dec 14, 2009
The AEO2010 presents long-term projections of energy supply, demand, and prices through 2035, which are based on results from EIAs National Energy Modeling System (NEMS). The AEO2010 Early Release only includes the reference case. The full publication, including many additional cases examining energy markets, will be released in March 2010.

Coal Distribution 2008 — Dec 9, 2009
This preliminary report provides the most recent data on domestic distribution of U.S. coal by state of origin and by state of destination. Details include distribution by consuming sector and method of coal transportation.

OPEC Revenues Fact Sheet (pdf) — Dec 8, 2009
Based on projections from the EIA December 2009 Short-Term Energy Outlook (STEO), members of the Organization of the Petroleum Exporting Countries (OPEC) could earn $575 billion of net oil export revenues in 2009 and $759 billion in 2010. Last year, OPEC earned $965 billion in net oil export revenues, a 41 percent increase from 2007. Saudi Arabia earned the largest share of these earnings, $284 billion, representing 29 percent of total OPEC revenues. On a per-capita basis, OPEC net oil export earning reached $2,671 in 2008, a 38 percent increase from 2007.

Short-Term Energy Outlook December 2009 — Dec 8, 2009
Short-term energy projections for supply, demand, and price for the major fuels through 2010 for the U.S. International oil forecasts are included.

Thursday, December 17, 2009

Four out of 10 Recent Buyers Relied on FHA Loans, Says NAR

According to the most recent Realtors® Confidence Index (RCI), 39 percent of recent buyers purchased a home with a Federal Housing Administration-insured loan (FHA). Realtors® who took part in the November survey also reported that the number of first-time home buyers continued to climb to 51 percent.

“FHA helps provide affordable mortgage financing to homeowners, particularly first-time home buyers who are so important in drawing down inventory to help stabilize the current housing market,” said NAR President Vicki Cox Golder. “These recent survey results reaffirm that, despite its current challenges, FHA is a critical part of the American housing fabric.”

The RCI results also indicated that distressed sales increased to 33 percent of all home sales last month, and that both investors and first-time home buyers are competing for these properties. The preponderance of distressed properties on the market has also influenced buyers’ perceptions of other homes for sale. Realtors® report that many buyers have pricing expectations that treat every property as if it were in foreclosure.

In addition, Realtors® expressed ongoing concerns with the impact of the Home Valuation Code of Conduct on recent appraisals. According to some survey respondents, inexperienced or out-of-area appraisers continue to rely heavily on sales prices of distressed properties, even when other comps are available.

“As the first, best source for real estate information, Realtors® have their finger on the pulse of current housing trends, and their knowledge and experience offer valuable insights into today’s real estate market,” said Golder. “We know that an economic recovery is not possible without a housing recovery, and we will continue to work with policymakers at all levels to ensure that this happens.”

The RCI is a key indicator of housing market strength based on a monthly survey of more than 50,000 Realtors®; in a typical month there are more than 3,000 usable responses. Participants are asked about their expectations for the demand for homes, price of homes, and other economic conditions.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

The Internal Revenue Service (IRS) today reminds individual taxpayers who are considering buying a new car that they have until Dec. 31 to take advantage of a tax break that may not be around in 2010.

Taxpayers who buy a qualifying new motor vehicle this year after Feb. 16 can deduct the state or local sales or excise taxes they paid on the first $49,500 of the purchase price. Qualifying motor vehicles include new passenger automobiles, light trucks, motorcycles, and motor homes.
Individuals who itemize and those who take the standard deduction can benefit from this tax break. In states without a sales tax, other taxes or fees can qualify if they are assessed on the purchase of the vehicle and are based on the vehicle’s sales price or as a per unit fee.

The deduction is reduced for joint filers with modified adjusted gross incomes (MAGI) between $250,000 and $260,000 and other taxpayers with MAGI between $125,000 and $135,000. Taxpayers with higher incomes do not qualify.

Taxpayers who take the standard deduction need to complete Schedule L and attach it to Form 1040 or Form 1040A to increase the standard deduction by the allowable amount of state or local sales or excise taxes paid on the purchase of the new vehicle. Also, check the box on line 40b on Form 1040 or line 24b on Form 1040A. Individuals who itemize should include the allowable amount of state or local sales or excise taxes from the purchase of the vehicle on Form 1040, Schedule A.

See also: Sales Tax Deduction for Vehicle Purchases

Source: IR-2009-119

IRS Issues Proposed Regulations on New Basis Reporting Requirement

WASHINGTON — The Internal Revenue Service (IRS) today issued proposed regulations under a new law that will require reporting of basis and other information by stock brokers and mutual fund companies for most stock purchased in 2011 and all stock purchased in 2012 and later years. The reporting will be to investors and the IRS. This additional reporting will be optional for stock purchased prior to these dates.

“This important reporting change will improve tax compliance while reducing the recordkeeping and paperwork burden for millions of investors,” said IRS Commissioner Doug Shulman. “These taxpayers will now receive the information they need to more easily report their gains and losses correctly.”

These proposed regulations, posted today on the Federal Register, implement a provision in the Energy Improvement and Extension Act of 2008. Among other things, the proposed regulations describe who is subject to this reporting requirement, which transactions are reportable and what information needs to be reported. They also provide numerous examples.

The IRS also released for comment a draft version of the 2011 Form 1099-B, Proceeds from Broker and Barter Exchange Transactions, that stock brokers and mutual fund companies will use to make these expanded year-end reports. Form 1099-B, long used to report sales prices, will be expanded in 2011 to include the cost or other basis of stock and mutual fund shares sold or exchanged during the year. The expanded form will also be used to report whether gain or loss realized on these transactions is long-term (held more than one year) or short-term (held one year or less), a key factor affecting the tax treatment of gain or loss. The expanded Form 1099-B, to be first used for calendar-year 2011 sales, must be filed with the IRS and furnished to investors in early 2012.

The IRS welcomes comments on these proposed regulations and the draft 2011 Form 1099-B. Comments must be received by Feb. 8, 2010, and may be submitted electronically, by mail or hand delivered to the IRS. A public hearing is scheduled for Feb. 17, 2010, at the IRS New Carrollton Federal Building, 5000 Ellin Road, Lanham, Maryland 20706. The proposed regulations provide details on submitting comments or participating in the public hearing.

The IRS will work closely with stakeholder groups to ensure a smooth implementation of this new program.

Source: IR-2009-118

Wednesday, December 16, 2009

HUD Announces Standards For State Compliance With SAFE Act

The U.S. Department of Housing and Urban Development (HUD) today announced publication of a proposed rule setting the minimum standards that states must meet to comply with theSecure and Fair Enforcement Mortgage Licensing Act of 2008 (SAFE Act) in licensing loan originators. The proposed rule is posted in today’s Federal Register and on HUD’s website.

The SAFE Act was enacted into law on July 30, 2008, as part of the Housing and Economic Recovery Act of 2008. It is designed to enhance consumer protection and reduce fraud by encouraging states to establish minimum standards for the licensing and registration of state-licensed mortgage loan originators. SAFE also mandates the creation of a Nationwide Mortgage Licensing System and Registry (NMLSR), and encourages all states to provide for a licensing and regulatory regime for all residential mortgage loan originators.

While states are charged with enacting licensing standards that meet the requirements of the SAFE Act, overall responsibility for interpretation, implementation, and compliance rests with HUD. If HUD determines that a state’s licensing standards do not meet the minimum requirements of the Act, it is required to implement and administer a licensing system for that state.

To comply with the Act, states must put in place a Loan Originator Licensing program that requires originators to take an education course, pass a test, and undergo civil, criminal and financial background checks. States have until July 31, 2010, to have their loan originators licensed under the SAFE Act criteria, unless they already have them licensed under a different system. If already using a different licensing system, they have until December 31, 2010, to bring them in line with the Act’s requirements.

The proposed rule:

•Addresses the criteria that HUD will use to determine whether a state has put in place a system for licensing and registering loan originators as required by the SAFE Act. The rule sets forth the statutorily imposed minimum requirements that a state would have to meet to be in compliance with the SAFE Act.

•Provides the requirements that HUD would put in place if HUD must establish a licensing and registration system for a state that is determined to not be in compliance with the SAFE Act.

•Addresses the enforcement authority provided to HUD in the SAFE Act including: (1) summons authority for information on any loan originator operating in any state that is subject to a licensing system established by HUD; (2) the authority to appoint examiners to assist HUD in its responsibilities in a state in which HUD established a licensing system; and (3) the authority to conduct cease- and-desist proceedings with respect to any person who is violating, has violated, or is about to violate any provision of the SAFE Act under a licensing system established by HUD, including the authority to issue temporary orders.

As part of the rule-making process, HUD is soliciting comments for 60 days on its proposal and the comments received will be considered in the development of a final rule. Comments should be submitted by mail or electronically as noted in the Federal Register posting.

Thursday, December 03, 2009

Federal Reserve Beige Book Report December 2009 Report

Reports from the twelve Federal Reserve Districts indicate that economic conditions have generally improved modestly since the last report. Eight Districts indicated some pickup in activity or improvement in conditions, while the remaining four--Philadelphia, Cleveland, Richmond, and Atlanta--reported that conditions were little changed and/or mixed.

Consumer spending was reported to have picked up moderately since the last report, for both general merchandise and vehicles; a number of Districts noted relatively robust sales of used autos. Most Districts indicated that non-auto retailers were holding lean inventories going into the holiday season. Tourism activity varied across Districts. Manufacturing conditions were said to be, on balance, steady to moderately improving across most of the country, while conditions in the nonfinancial service sector generally strengthened somewhat, though with some variation across Districts and across industries. Residential real estate conditions were somewhat improved from very low levels, on balance, led by the lower end of the market. Most Districts reported some pickup in home sales, though prices were generally said to be flat or declining modestly; residential construction was characterized as weak, but some Districts did note some pickup in activity. Commercial real estate markets and construction activity were depicted as very weak and, in many cases, deteriorating.

Financial institutions generally reported steady to weaker loan demand, continued tight credit standards, and steady or deteriorating loan quality. In the agricultural sector, the fall harvest was delayed in the eastern half of the nation due to excessively wet conditions during October and early November. Most energy-producing Districts noted a slight uptick in activity in the sector since the last report. Labor market conditions remained weak since the last report, though there were signs of stabilization and scattered signs of improvement. While some Districts reported upward pressure on commodity prices, they saw little or no indication of upward wage pressures or of any significant increase in prices of finished goods.

In the Philadelphia (Third District) region, economic conditions have been mixed in recent weeks. Manufacturers, on balance, reported an increase in shipments and a steady rate of new orders. Retailers indicated that sales have been rising slowly, although they remained below the year-ago level for most stores. Motor vehicle dealers indicated that sales have improved somewhat, although dealer closings continued. Third District banks generally reported decreasing loan volume outstanding and further declines in credit quality. Residential real estate agents and home builders noted mostly unchanged sales rates. Nonresidential real estate leasing and construction activity continued to decline. Service-sector firms generally reported that activity continued to be slow. Business firms in the region reported mostly level prices, although some indicated that prices of some basic commodities have increased recently.

The outlook in the Third District business community remained lackluster in November. Manufacturers forecast a rise in shipments and orders during the next six months, on balance, although the balance of positive views has eased in the past month. Retailers have mixed views, but on balance they expect sales for the holiday shopping period this year to roughly match last year. Auto dealers expect sales to improve in the near-term, although they say the number of dealers remaining in business will continue to decline. Bankers anticipate demand for credit to remain weak though the winter. Residential real estate contacts believe housing demand will continue to firm up, but they do not expect a substantial increase in sales until sometime next year. Contacts in nonresidential real estate expect leasing and construction to remain weak well into 2010. Service-sector firms expect activity to remain near current levels in the near term.

Source Beige Book

Click here for the Federal Reserve December 2009 Beige Book [Beige Book Archives]

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

Visit my web site for real estate services and support: LawrenceYerkes.com [NJ/PA]

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

Wednesday, December 02, 2009

Government Web Site for Those With Properties In Distress

The federal Administration has introduced a comprehensive Financial Stability Plan to address the key problems at the heart of the current crisis and get our economy back on track. A critical piece of that effort is Making Home Affordable, a plan to stabilize our housing market and help up to 7 to 9 million Americans reduce their monthly mortgage payments to more affordable levels.

The Home Affordable Refinance Program gives up to 4 to 5 million homeowners with loans owned or guaranteed by Fannie Mae or Freddie Mac an opportunity to refinance into more affordable monthly payments. The Home Affordable Modification Program commits $75 billion to keep up to 3 to 4 million Americans in their homes by preventing avoidable foreclosures.

Their consumer website, www.MakingHomeAffordable.gov, provides homeowners with detailed information about these programs along with self-assessment tools and calculators to empower borrowers with the resources they need to determine whether they might be eligible for a modification or a refinance under the Administration's program. Through this website, borrowers can also connect with free counseling resources to help with outstanding questions; locate homeowner events in their communities; find a handy checklist of key documents and materials to have ready when making that important call to their servicer as well as FAQs from borrowers in similar circumstances; and much more. (Source: MakingHomeAffordable.gov)

Website: MakingHomeAffordable.gov

NOTE: As Certified Distress Property Experts (CDPE), if you are someone you know is dealing with a property that is in distress or facing the possibility of foreclosure, we will be happy to discuss your particular situation and what can be done to take care of it. It is important that you begin a soon as possible to act on this once you are aware you may be facing a distress situation, such as the possibility of foreclosure.

Visit my web site for real estate services and support: LawrenceYerkes.com [NJ/PA]

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

Tuesday, December 01, 2009

Nine Consecutive Gains for Pending Home Sales

Pending home sales have risen for nine months in a row, a first for the series of the index since its inception in 2001, according to the National Association of Realtors® (NAR).

The Pending Home Sales Index (PHSI),* a forward-looking indicator based on contracts signed in October, increased 3.7 percent to 114.1 from 110.0 in September, and is 31.8 percent above October 2008 when it was 86.6. The rise from a year ago is the biggest annual increase ever recorded for the index, which is at the highest level since March 2006 when it was 115.2.

Lawrence Yun, NAR chief economist, said home sales are experiencing a pendulum swing. “Keep in mind that housing had been underperforming over most of the past year. Based on the demographics of our growing population, existing-home sales should be in the range of 5.5 million to 6.0 million annually, but we were well below the 5-million mark before the home buyer tax credit stimulus,” he said. “This means the tax credit is helping unleash a pent-up demand from a large pool of financially qualified renters, much more than borrowing sales from the future.

The PHSI in the Northeast surged 19.9 percent to 100.2 in October and is 44.2 percent above a year ago. In the Midwest the index rose 11.6 percent to 109.6 and is 36.6 percent higher than October 2008. Pending home sales in the South increased 5.4 percent to an index of 115.4, which is 31.6 percent above a year ago. In the West the index fell 11.2 percent to 127.7 but is 21.9 percent above October 2008.

Yun cautioned that home sales could dip in the months ahead. “The expanded tax credit has only been available for the past three weeks, but the time between when buyers start looking at homes until they close on a sale can take anywhere from three to five months. Given the lag time, we could see a temporary decline in closed existing-home sales from December until early spring when we get another surge, but the weak job market remains a major concern and could slow the recovery process.

“Still, as inventories continue to decline and balance is gradually restored between buyers and sellers, we should reach self-sustaining housing conditions and firming home prices in most areas around the middle of 2010. That would mean broad wealth stabilization for the vast number of middle-class families,” Yun said.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 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 reported December 22 and the next Pending Home Sales Index will be on January 5; release times are 10 a.m. EST.

Treasury Sets Guidance to Simplify Short Sales

The U.S. Treasury on Monday set long-awaited guidance on a plan for mortgage companies to speed "short sales" of homes and other loan modification alternatives to stem a rising tide of foreclosures... (Source: Reuters)

Full Story

For another take on the guidance, here's one from the Examiner.com:

Obama administration prods U.S. Treasury to modify real estate short sale guidelines to spur sales

Resource: Home Affordable Modification Program Guidelines (PDF)

Website: MakingHomeAffordable.gov

Real Estate Cyber Tips - December 2009

CYBER MAGIC TRICKS

TRICK#1

YOU ARE NOW FLUENT IN 45 LANGUAGES!
If you are an iPhone user this neat app called PeopleFlasher will blow you away. This new application turns your iPhone into a flashing machine that can be seen well across a room – or across the street. It’s handy for hailing taxis, getting a waiter’s attention and all sorts of other helpful and fun activities. And, believe it or not, this gem will automatically translate your flashes into 45 different languages. No need to struggle with pronunciation – just hold up your screen and the reader will know exactly what you need. Lots of other nifty bells and whistles – and to top it off, the introductory price is only 99 CENTS. Hey, that alone makes it worthwhile to get that iPhone!
Click Here for This Cyber Trick

TRICK#2

ORGANIZED AT LAST!
This was invented for those of us who have a hard time getting organized –and of course for those who are always looking for easier and better ways to stay organized.With this great organizer you can take and save a note, dictate a memo, save a special web page, take a photo (and much more) and send or save any or all of them into this neat package that will keep you from coo coo in these hectic days. And the great part is it instantly organizes your materials on your desktop, your notebook and on your mobile phone (iPhone, BlackBerry, Palm Pre or Windows Mobile).You may have to put up with some ads – but the price is right – it’s on the house.
Click Here for This Cyber Trick

GREAT PLACES!

GREAT PLACE #1

HERE’S A LIST YOU WANT TO BE ON!
There have been big shifts amongst the richest people in the USA and even though many of the rich are getting poorer it’s all a matter of degree. The collective net worth of The Forbes 400 fell from $1.57 trillion to $1.27 trillion.That doesn’t stop this list from being a super interesting place to visit. The short bios and photos make this an instructive and fun read. You can follow stories of incredible inheritances and many rags to riches Horatio Alger sagas. You can even check out those who "almost made it!"Despite the downturn (or maybe because of it) we’d like to get on that list. It just got easier!
Click Here for This Great Place

GREAT PLACE #2

HOW TO COOK ANYTHING!
Ready to whip up a dish but not sure if you have all of the ingredients on hand? Here’s a great little helper that will give you all of the information you need.Just pick from any one of 14 categories (Chicken, pasta, seafood, beef, pasta, cookies++) or any of 56 sub categories (Marinara sauce, pesto sauce, cream sauce, seafood sauce, etc). You will be presented with a list of many ingredients. Simply check off those you have on hand and - Shazam! – you’ll be presented with a list of recipes that contain those ingredients. And if there are critical ones you need it’ll let you know.It’s on the house – and you’ll look like one of the world’s great chefs!
Click Here for This Great Place

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