RISMEDIA, August 30, 2010—Resting on its laurels is not an option for 104-year-old brand Coldwell Banker. As real estate companies continue to become more aggressive with the latest technologies and social media platforms to keep in touch with consumers, Coldwell Banker is taking its foray into the future seriously. With a presence on YouTube, Facebook and Twitter, and now an active participant in the blogging world, Coldwell Banker is staying at the front of the social media wave. In this exclusive interview, Coldwell Banker Chief Marketing Officer Michael Fischer discusses how the company is anticipating consumers’ needs and always staying one step ahead.

Paige Tepping: Coldwell Banker has a huge social media presence. What is the company’s overall social media strategy?
Michael Fischer: The idea behind our getting involved with social media was to establish a better relationship between the Coldwell Banker brand and consumers as well as with our agents. Certain networks and platforms work better for different audiences. We have a strong Facebook and Twitter platform for our agents while our YouTube channel (On Location) and Blog (Blue Matter) focus on creating a conversation and establishing dialogue with our consumers. Social media has been a wonderful opportunity for the Coldwell Banker brand to continue the conversation beyond our internal newsletter to agents or website to consumers.

On Location meets an unmet need for home buyers and sellers. Our entire rationale in video is to combine an agent’s personality, which clearly comes across in video, with the unique aspects of a property. It’s a marketing opportunity our industry hasn’t had before. We have had thousands and thousands of videos uploaded in a little more than a year…and consumers have responded as well.

PT: Why is it important to have a social media presence, especially in today’s market?
MF: We take pride in the fact that we travel around the country in order to speak face-to-face with our agents, brokers and managers. By taking advantage of the social media platforms that are available, we can create even more constant dialogue with them on a daily basis. We are committed to social media as it gives us the chance to create a two-way conversation within the brand as well as with our consumers. By being present in social media, we can put a face to the Coldwell Banker name so that our clients can connect with us on an even deeper level.

For example, On Location provides not only Jim Gillespie (CEO) with a forum to address real estate matters, but our agents are using the site to showcase their expertise on local market conditions and expose their listings.

PT: How will the newly revamped coldwellbanker.com be valuable to today’s consumers?
MF: We have put a lot of thought and energy into our new Coldwell Banker website and have worked to create a site that is different from all the others on the Web. Revamping our website was all about helping consumers find the information they are looking for in a more straightforward way. One new feature is a rating system, which is used internally to drive algorithms on the backend that will recommend properties to consumers, much like iTunes recommends music according to songs you have purchased in the past.

In addition, our new BlueScape Search feature is a Pandora-inspired search that takes the rational thinking out of the home-search process and creates a truly emotional search. After rating at least five photos, BlueScape compiles a group of properties that are unique to an individual consumer’s taste. It’s more visual and completely new to our industry.

PT: While On Location is dedicated solely to consumers, what was the motivation behind creating your Blue Matter blog?
MF: We felt the real estate industry, when it comes to blogging, was not focused on the consumer. The Web is full of real estate blogs, but they are all just industry people talking to each other. With Blue Matter, we have an opportunity to share unique insights and thought-provoking commentary.

Coldwell Banker has a strong point of view on how to guide consumers through today’s difficult market. Our blog gives us a chance to be honest with consumers and provide them with a reasonable path through today’s real estate market.

PT: Why is it important for today’s real estate companies to not be content with just having a great-looking website?
MF: Today’s consumers want information where they are. The old philosophy of creating virtual brick and mortars and driving people to online sites is no longer going to cut it. Consumers want information coming directly to them or served in areas where they spend time, such as social media sites. Consumers are more mobile than ever, so we need to make sure we are reaching them—whether it be through an app, a mobile-enabled site, TV commercials or video.

PT: What is your goal in being so actively involved in social media?
MF: Our goal in being involved with social media is to understand what our customers, brokers and agents want and need, and there is no better way of keeping a pulse on what is going on than by being involved in social media. While Coldwell Banker has been around for 104 years, we never want to rest on our laurels. We have always been interested in understanding what’s out there as well as what we need to do as a company to adapt to consumers’ needs and ensure we respond more quickly to these needs than other real estate companies. Our use of social media has differentiated us as a company, and at the end of the day, we want people to be proud of their association with us.

PT: Looking toward the future, where do you see Coldwell Banker headed with social media?
MF: As we move into the future, the social media platforms that are popular today will change as there are always going to be new ways of connecting. We are constantly working to stay on top of what is available and what is coming down the road so that when there is an opportunity to connect and engage with customers, we will have tried and understood the new medium and be ready to move forward.

For more information, visit www.coldwellbanker.com.

And for your Charleston Real Estate needs to buy or sell, visit
BobRamella.com

RISMEDIA, July 15, 2010—RealtyTrac, a leading online marketplace for foreclosure properties, recently released its Midyear 2010 U.S. Foreclosure Market Report, which shows a total of 1,961,894 foreclosure filings—default notices, auction sale notices and bank repossessions—were reported on 1,654,634 U.S. properties in the first six months of 2010, a 5% decrease in total properties from the previous six months but an 8% increase in total properties from the first six months of 2009. The report also shows that 1.28% of all U.S. housing units (one in 78) received at least one foreclosure filing in the first half of the year.

Foreclosure filings were reported on 313,841 U.S. properties in June, a decrease of nearly 3% from the previous month and a decrease of nearly 7% from June 2009. June was the sixteenth straight month where the total number of properties with foreclosure filings exceeded 300,000.

Foreclosure filings were reported on 895,521 U.S. properties during the second quarter, a decrease of nearly 4% from the previous quarter and an increase of less than 1% from the second quarter of 2009. Default and auction notices were down on a month-over-month and year-over-year basis in the first quarter, but bank repossessions (REOs) increased 5% from the previous quarter and 38% from Q2 2009 to 269,962—a new quarterly high for the report.

“The second quarter was a tale of two trends,” said James J. Saccacio, chief executive officer of RealtyTrac. “The pace of properties entering foreclosure slowed as lenders pre-empted or delayed foreclosure proceedings on delinquent properties with more aggressive short sale and loan modification initiatives. Meanwhile, the pace of properties completing the foreclosure process through bank repossession quickened as lenders cleared out a backlog of distressed inventory delayed by foreclosure prevention efforts in 2009.

“The midyear numbers put us on pace to exceed 3 million properties with foreclosure filings by the end of the year, and more than 1 million bank repossessions,” Saccacio continued. “The roller coaster pattern of foreclosure activity over the past 12 months demonstrates that while the foreclosure problem is being managed on the surface, a massive number of distressed properties and underwater loans continues to sit just below the surface, threatening the fragile stability of the housing market.”

Nevada, Arizona, Florida post top state foreclosure rates
Nearly 6% of all Nevada housing units (one in 17) received at least one foreclosure filing in the first half of 2010, giving Nevada the nation’s highest foreclosure rate during the six-month period despite decreasing foreclosure activity. A total of 64,429 Nevada properties received a foreclosure filing from January to June, a decrease of 13% from the previous six months and a decrease of 6% from the first six months of 2009.

Arizona registered the nation’s second highest state foreclosure rate in the first half of 2010, with 3.36% of its housing units (one in 30) receiving a foreclosure filing, and Florida registered the nation’s third highest state foreclosure rate, with 3.15% of its housing units (one in 32) receiving a foreclosure filing during the six months.

Other states with foreclosure rates ranking among the nation’s 10 highest were California (2.54%), Utah (1.91%), Georgia (1.79%), Michigan (1.73%), Idaho (1.68%), Illinois (1.61%) and Colorado (1.40%).

California, Florida, Arizona post highest foreclosure totals
A total of 340,740 California properties received a foreclosure filing in the first half of 2010, the nation’s highest total but down 15% from the previous six months and down nearly 13% from the first six months of 2009.

With 277,073 properties receiving a foreclosure filing in the first six months of 2010, Florida documented the second highest state total. First-half foreclosure activity in Florida decreased nearly 9% from the previous six months but increased 3% from the first half of 2009.

Arizona’s 91,484 properties receiving a foreclosure filing in the first six months of 2010 was the third highest state total even though the state’s foreclosure activity decreased nearly 2% from the previous six months. Arizona foreclosure activity in the first half of 2010 was still up nearly 2% from the first half of 2009.

Other states with first-half totals among the 10 highest in the country were Illinois (85,223), Michigan (78,509), Georgia (71,949), Texas (64,883), Nevada (64,429), Ohio (59,927) and New Jersey (36,542).

This article was written by Alan J. Heavens and first appeared in the Philadelphia Inquirer.

RISMEDIA, June 26, 2010—(MCT)—When the going gets tough, the houses get smaller. Or at least that’s what data from the U.S. Census Bureau are suggesting.

The average size of a new single-family house shrank significantly from 2008 to 2009, the census figures show.

According to the data, the national average decrease was 51 square feet, to 2,422 square feet. In the Northeastern United States, the change was more dramatic: House size diminished by more than 200 square feet, to 2,529 square feet.

Is this a victory for the anti-McMansion forces that have spent much of the last decade railing against the waste, overconsumption and isolation that very big houses can promote? Not so much.

“We also saw a decline in the size of new homes when the economy lapsed into recession in the early 1980s,” said David Crowe, chief economist of the National Association of Home Builders.

Philadelphia economist Kevin Gillen, vice president of Econsult Corp., said that buyers are having fewer children, so they need less space. They’re also looking for more centrally located and eco-conscious properties.

“So the data do not indicate that buyers are looking for smaller homes because they think small is beautiful,” Gillen said. “Rather, they want homes that are more energy-efficient, with a more urban location and with fewer bedrooms—that all naturally translates into a smaller home.”

With some small year-to-year variations, houses have grown almost unceasingly since 1978, census data show. In the early 1980s, the decline in new-home size was temporary—30 years ago, the average size was 1,700 square feet. This time, the shrinking new house appears to be related to several, perhaps longer-term causes—conditions that Crowe said are likely to be around for awhile:

-A greater percentage of all homes are being purchased by first-time buyers, who don’t have to worry about selling old homes in a tough market. Nor do they tend to have a lot of money to buy houses.
-Consumers have a growing desire to cut energy costs.
-Buyers have smaller amounts of equity in their current homes to roll into their new ones.
-Credit standards are tighter, and there is less focus on home buying as an investment.

The largest share of buyers taking advantage of the recently expired tax credits were first-timers, figures from the National Association of Realtors show. In April 2010 alone, 49% of those buying previously owned homes were first-timers, up from 44% in March, the numbers show. Qualified first-time buyers were eligible for up to an $8,000 tax credit.

Moreover, since 2006, when the nationwide real estate boom peaked, sales have been shifting toward lower-price segments of the market—less than $350,000.

Because of that, “new construction, at least the relatively small amount that there is, has started to reflect smaller footprints,” said Michael Feder, president and CEO of Radar Logic of New York, which tracks real estate values. “This is probably a result of targeting a sale price and backing into what can be built,” Feder said—meaning that if you know what price range will sell, you build a house to fit it.

The shift back toward sales of homes costing less than $350,000 “reflects a decline in home prices in all price segments,” he said, “as well as a decline in demand for expensive homes due to the economic downturn and the paucity of housing credit, particularly jumbo loans” (loans over $417,000 in the Philadelphia area).

On average, home sales for less than $350,000 have increased 12% year-over-year during the months since January 2009, while sales of houses priced from $350,000 to $900,000 have decreased 8%, Feder said.

Although energy efficiency—a component of “green” building—has been increasing in importance among new-home buyers, it isn’t yet a critical part of the decision-making process—especially with credit tighter and price a major concern, market research indicates.

In a members survey conducted last summer by the National Association of Home Builders, respondents said that “among buyers who are willing to pay more for green features, more than half—57%—are unlikely to pay more than an additional 2%” for them, said Joe Robson, the group’s former chair.

As record numbers of foreclosures mount across the country and the brakes are only now being put to four years of home-price declines, fewer Americans are buying houses as surefire investments.

A Fannie Mae survey in April of 3,400 Americans 18 and older showed reasons such as safety and quality of schools as the driving factors in owning a home.

“Consumers are still committed to owning a home, but are showing increased cautiousness,” said Doug Duncan, Fannie Mae’s chief economist. “They are rebalancing their attitudes toward housing and home ownership by adopting a more realistic, long-term approach and are less willing to take risks.”

RISMEDIA, June 21, 2010—After several years of housing depreciation, the one thing that seems to be on everyone’s mind is, “when will this housing recession end?” and “when will my house start gaining value again?” This eagerness by homeowners to get the housing market back on track has spawned several misconceptions about the housing market.

To help homeowners set reasonable expectations for the housing market in the coming years, Zillow’s Chief Economist, Dr. Stan Humphries presented “Four Myths of the Housing Market” alongside Doug Duncan, chief economist for Fannie Mae and Bob Bach, chief economist for Grubb & Ellis at the recent National Association of Real Estate Editors (NAREE) conference in Austin, TX.

Four housing market myths:

1. The housing recession is over

While home sales have reached a bottom, home values have not, and likely will not bottom out until Q3 of 2010. Zillow’s April data shows that nationally, home values fell 4.1% year-over-year, 1.1% quarter-over-quarter and 0.4% month-over-month.

2. We’ll see a return to historical appreciation rates after we hit a bottom in prices

Not true. The housing bottom is likely to be long and flat, and it is highly likely that we will not return to historical appreciation rates for another three to five years. There are several contributing factors:

-Shadow Inventory: There are approximately five million homes that are 90+ days delinquent or currently in foreclosure, according to both the Mortgage Bankers Association and Lender Processing Services.

-Sidelined Sellers: There are 5.3 million homeowners waiting on the sidelines to sell once the market starts to show positive signs, according to Zillow’s Q1 Homeowner Confidence Survey.

-Negative Equity: With 23.3% of single-family homes with mortgages currently in negative equity (up from 21.4% in Q4 2009) and unemployment forecasted to stay at elevated levels, we’ll continue to see high rates of foreclosure. Moreover, negative equity is suppressing housing demand since homeowners trapped in their current homes because of underwater mortgages can’t go buy new homes.

-Mortgage Rates: The good news is that current mortgages rates are at historic lows and they’ve defied, thus far, predictions that they will climb (thanks to European sovereign debt woes). Long-term though, they will be higher than they are now and that will impact housing demand.

3. The worst of the foreclosure crisis is over

The rate of foreclosures is actually INCREASING nationally. According to Zillow’s April data, 1.1 out of every 1,000 homes was foreclosed upon in April. In some of the harder hit metros in California, Arizona and Nevada, 3-4 out of every 1,000 homes were foreclosed upon in April. Foreclosure rates will likely stay elevated so long as rates of negative equity and unemployment remain high.

4. The home buyer tax credits saved our bacon

The home buyer tax credits did stimulate sales, especially during the first wave of the credit in 2009 when it was exclusive to first-time home buyers. During its first incarnation, the tax credit likely did even mint new incremental sales that wouldn’t have occurred otherwise (see our analysis here). In its second incarnation, however, most stimulated demand was likely pulled forward from future months versus being incremental new sales that would not have occurred otherwise. Historically low mortgage rates, dramatically increased housing affordability, and substantially ramped up lending from the Federal Housing Administration have been enormous factors in getting sales moving again. The first round of tax credits may have created a shift in market psychology that was helpful to the market but, arguably, these other factors alone might have pushed sales up from their early 2009.

Paul Owers has written this article about the possibility of lender recourse without notice in a foreclosure situation. Please read and take careful notes. This could drastically effect your future.

RISMEDIA, June 8, 2010—(MCT)—Before Larry Thomas unloaded his Pompano Beach, Fla., home last fall for a fraction of what he paid, he cut a deal that will keep him from worrying about a huge debt hanging over his head.

Thomas insisted that his lender, American Home Mortgage Servicing, agree not to come after him for the estimated $174,000 he still owed on his two mortgages. “I feel incredible relief,” the restaurant manager said recently.

Others may not be as fortunate. Lenders will file a tidal wave of lawsuits against homeowners in the next few years as a way to recoup losses when home sales or foreclosure auctions don’t result in enough money to pay the mortgages in full, real estate and legal analysts say. “It will be a dramatic problem because the borrowers will not know it’s coming,” said Frank Alexander, a law professor at Emory University in Atlanta.

Laws vary from state to state. In Florida, banks have five years from the date of the sale to file for so-called deficiency judgments and up to 20 years to collect. Lenders can garnish wages or make claims on borrowers’ assets.

Before the housing meltdown, few lenders filed these lawsuits. Foreclosures and short sales—selling for less than the mortgage amount—were relatively rare at the time, and many of the homeowners didn’t have sufficient assets to make it worth the banks’ time and expense.

But following the heady days of the housing boom that spawned millionaire investors seemingly overnight, it’s not uncommon for borrowers to default on mortgages while still holding lucrative investments.

As the next wave of the housing crisis plays out, those most in danger of getting slapped with lawsuits include angry homeowners who ransack properties they’re losing in foreclosure and borrowers who walk away from “underwater” mortgages. In both cases, analysts say, banks will want to discourage other people from such behavior.

More than four in 10 homeowners said they would consider abandoning properties that are underwater, or worth less than the mortgages, according to a national online survey released recently by real estate firms Trulia and RealtyTrac.

Mortgage companies typically won’t sue homeowners who negotiate in good faith or those who default on their loans because of job losses or other unforeseen circumstances, said Anthony Manno, an executive with Steelbridge Real Estate Services. The Miami-based company works with lenders on the resale of foreclosed homes. Still, borrowers shouldn’t rely on a lender’s verbal commitment, Manno said. “Get something in writing.”

Critics insist that spite will play a role in some of these lawsuits. Lenders deny it.

“We certainly would not do that,” said Russell Greene, president of Grand Bank & Trust of Florida in West Palm Beach. “It’s a business decision—not an emotional decision. It’s very time-consuming to take someone to court.”

Even if lenders don’t pursue the judgments, they could sell mortgage debt to collection agencies at deep discounts. And it will be those debt collectors that will hound borrowers, said Shari Olefson, a Fort Lauderdale real estate lawyer.

“They paid money to be able to hassle you,” she said.

Thomas, the former Pompano Beach homeowner, said he didn’t have money for a down payment but was approved for 100% financing on two loans in spring 2006. He bought a three-bedroom home for $245,000. Thomas said he soon became responsible for the entire mortgage after his roommate lost his job. That became even more difficult after Thomas took a pay cut.

So he attempted a short sale, eventually finding plenty of prospective buyers interested in a property that had plummeted nearly 70% in value. He and American Home Mortgage accepted one offer for $80,000. After closing costs, the lender netted about $71,000, said his Fort Lauderdale lawyer, Joe Kohn. But before the sale closed, Kohn had American Home Mortgage waive its right to collect on the remaining mortgage debt.

Christine Sullivan, a spokeswoman for the lender, wrote in an e-mail that she can’t discuss Thomas’ case because of privacy issues. But when homeowners seeking short sales demonstrate legitimate hardship, “we provide a full release of liability, and we do not pursue deficiency judgments.”

Some banks say they won’t file a lawsuit, though they aren’t willing to put that in writing, Kohn said. “I have no choice but to accept that,” he said. “Even when you play by the rules, banks don’t always do what we’d like.”

Under new government guidelines for short sales that took effect this spring, lenders aren’t supposed to hold homeowners responsible for any remaining mortgage debt. But not all short sales fall under the guidelines, while some lenders choose not to implement them, Kohn said.

A forgiven mortgage balance through 2012 is not considered taxable income on a primary residence as long as the debt was used to buy or improve the house. But borrowers who walk away from investment properties risk having to pay federal income taxes on the forgiven amount.

Homeowners who hand their properties back to the bank through so-called deeds in lieu of foreclosure also should make sure they won’t be on the hook for any mortgage debt.

With friends facing deficiency judgments, Thomas said he’s grateful he sought legal advice on how to avoid a lawsuit. He now rents a home west of Boca Raton, but he just found out the owner is in foreclosure. “I’ve escaped my own problem, only to inherit someone else’s,” Thomas said. “But this is nothing. It’s just a matter of picking up the pieces and moving on to the next rental.”

RISMEDIA, June 7, 2010—Pending home sales have risen for three consecutive months, reflecting the broad impact of the home buyer tax credit and favorable housing affordability conditions, according to the National Association of Realtors.

The Pending Home Sales Index, a forward-looking indicator, rose 6.0% to 110.9 based on contracts signed in April, from an upwardly revised 104.6 in March, and is 22.4% higher than April 2009 when it was 90.6. That follows gains of 7.1% in March and 8.3% in February.

Pending home sales are at the highest level since last October when the index reached 112.4 and first-time buyers were rushing to beat the initial deadline for the tax credit. The data reflects contracts and not closings, which usually occur with a lag time of one or two months.

Lawrence Yun, NAR chief economist, said this second round of surging sales from the tax credit extension looks as strong as the original tax credit. “There were concerns that only a small pool of buyers were left to take advantage of the tax credit extension. But evidently the tax stimulus, combined with improved consumer confidence and low mortgage interest rates, are contributing to surging sales,” he said. “The housing market has to get back on its own feet and now appears to be in a good position to return to sustainable levels even without government stimulus, provided the economy continues to add jobs.” NAR expects a net of 1 million additional jobs in the second half of this year and about 2 million in 2011.

“The home buyer tax credit brought close to 1 million additional buyers into the market, which is now helping the trade-up market and has significantly improved the inventory situation. This stabilized home prices more quickly and has preserved about $900 billion in home equity; in turn, that is keeping additional households from going underwater and risking foreclosure,” Yun said.

The PHSI in the Northeast jumped 29.5% to 97.9 in April and is 24.5% above a year ago. In the Midwest the index rose 4.1% to 104.2 and is 17.9% above April 2009. Pending home sales in the South slipped 0.6% to an index of 123.9, but is 31.3% higher than a year ago. In the West the index rose 7.5% to 107.9 and is 12.0% higher than April 2009.

“A big concern surfacing recently is insufficient time to close the deal at the settlement table. Under normal circumstances, two months would be enough time from contract signing to settlement date,” Yun said. “However, the recent housing cycle has brought long delays related to the short sales approval process by banks, and from ongoing appraisal issues. There could be a sizable number of home buyers who responded to tax credit incentives, but may encounter problems meeting the settlement deadline by June 30.” Because of these market challenges, NAR has asked Congress to provide flexibility on the deadline for closing.

For more information, visit www.realtor.org.

This great article was written by Stephanie Andre and tells the story of a wonderful Buyer Tool that is not being used to it’s potential. A Buyer can find a property in need of repairs and updating, selling at a fantastic price and buy the home with the repairs and upgrades built into the mortgage amount using the FHA 203K Loan Program. Contact me for the details of how to put this tool to work in helping you find a great new home at an unbelievable price!

RISMEDIA, May 27, 2010—The road toward homeownership was a bit more difficult than self-proclaimed “country boy” Ronald Black thought it would be. He began his home search last summer in Polk County, Florida, a more rural community outside of Tampa’s Hillsborough County. After little luck going it alone with his credit union and still more frustration, even after hiring a REALTOR®, fate finally found Black.

Black was driving down the street in early November when he saw a sign posted on a telephone pole: “Government-owned foreclosures—$100 down. FHA financeable.” After inquiring, Black found he had only 24 hours to view the four-bedroom property he was interested in before the auction began.

“The asking price was $36,900,” recalls Black, a maintenance worker who services all 308 facilities in Hillsborough County. “They told me that I needed to place a bid. I told them that I didn’t want to place a bid; I just wanted to buy the house. Well, that didn’t fly, so I placed a bid for $37,100 and 24 hours later, I got the house.”

What Black didn’t know was that although the homes at the auction qualified for FHA financing, the home he purchased didn’t because it didn’t meet eligibility standards because of its age and condition. After all, it was built in 1959.

“My Realtor® started working right away to find me a lender— and did,” says Black. Wells Fargo preapproved Black for a loan. But unfortunately for Black, getting into the Lakeland, Florida, home wasn’t easy.

Because of the home’s condition, Black faced a number of financing hurdles. However, his lender said he was eligible for the government’s 203k program, a home renovation loan that is added to the buyer’s mortgage.

Once the 203k loan was approved, Black then had issues with the home improvement retailer he chose. “They didn’t return my calls and seemed difficult to work with,” says Black.

So, he moved on to Lowe’s.

“From the minute Lowe’s got my information, they began trying to help me,” he says. “Michelle [Deatherage] at Lowe’s spent an entire weekend helping me get the loan through and working with Wells Fargo. From not knowing her to getting the loan signed, it was under 48 hours. She was amazing. I wouldn’t be in this home without her.”

It took about five months, but finally Black closed on the house in early March. Less than two weeks later, Lowe’s began the vital—and very extensive—renovations, including brand-new electrical wiring of the entire home. “The home’s electrical system was nowhere near modern-day codes,” he explains. “It would never pass inspection.”

In fact, the house didn’t even have circuit breakers; it had screw-in fuses. “They have to redo every single wire, box and breaker. There was no central heat or air conditioning. You name it, they are redoing it.”

In addition to the electrical problems, Lowe’s contractors are also doing minor plumbing work and fixing the walls. They are also adding carpeting and new floors and renovating the entire kitchen with new cabinets and kitchen appliances. Plus, they will install a new hot water heater.

At press time, Lowe’s contractors have what they believe are just weeks left before the house is ready for inspection. If it passes, Black and his family can finally move in. “When this is all done, we’ll have the inspector come in to make sure the house now meets modern-day FHA qualifications,” says Black.

This move-in is important to Black, not just for himself, but for his entire family. His son, daughter-in-law and their almost 4-year-old will move into the home as well. “This house has gone from a want to a need. We are excited to move in,” he says.

For more information on the 203k loan program, visit www.hud.gov or www.re-buildusa.com.

RISMEDIA, May 26, 2010—Existing-home sales rose again in April 2010 with buyers motivated by the tax credit, improving consumer confidence and favorable affordability conditions, according to the National Association of Realtors.

Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 7.6% to a seasonally adjusted annual rate of 5.77 million units in April from an upwardly revised 5.36 million in March, and are 22.8% higher than the 4.70 million-unit pace in April 2009. Monthly sales rose 7.0% in March.

Lawrence Yun, NAR chief economist, said the gain was widely anticipated. “The upswing in April existing-home sales was expected because of the tax credit inducement, and no doubt there will be some temporary fallback in the months immediately after it expires, but other factors also are supporting the market,” he said. “For people who were on the sidelines, there’s been a return of buyer confidence with stabilizing home prices, an improving economy and mortgage interest rates that remain historically low.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 5.10% in April from 4.97% in March; the rate was 4.91% in April 2009.

Total housing inventory at the end of April rose 11.5% to 4.04 million existing homes available for sale, which represents an 8.4-month supply at the current sales pace, up from an 8.1-month supply in March. Raw unsold inventory is 2.7% above a year ago, but remains 11.6% below the record of 4.58 million in July 2008.

“Although inventory levels remain above normal and much of the gain last month was seasonal, the housing price correction appears essentially over,” Yun said. “In fact, a majority of the markets have seen price gains recently. A return to old-fashioned responsible lending and buying will help the housing market avoid disruptive and painful bubble-bust cycles.”

The national median existing-home price for all housing types was $173,100 in April, up 4.0% from April 2009. Distressed homes accounted for 33% of sales last month, compared with 35% in March.

NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz., said buyer traffic is mixed. “It looks like the level of home sales that close in May and June will stay elevated, but many buyers remain in the market even without the tax credit,” she said. “Some Realtors tell us they are very busy with clients who are entering the market now as a result of improved conditions, while others are welcoming a slowdown from frantic market conditions in recent months.

“Buyers are focused on finding the right house and taking advantage of favorable affordability conditions. For many buyers, owning a home is a lifestyle choice. They want a place of their own to raise a family, build memories, and be part of a larger community,” Golder said.

A parallel NAR practitioner survey shows first-time buyers purchased 49% of homes in April, up from 44% in March. Investors accounted for 15% of transactions in April, down from 19% in March; the remaining sales were to repeat buyers. All-cash sales stood at 26% in April; they were 27% in March.

Single-family home sales rose 7.4% to a seasonally adjusted annual rate of 5.05 million in April from a pace of 4.70 million in March, and are 20.5% above the 4.19 million level in April 2009. The median existing single-family home price was $173,400 in April, up 4.5% from a year ago.

Single-family median prices rose in 18 out of 20 metropolitan statistical areas reported in April from a year ago; six of the areas experienced double-digit increases. In data recently reported for the first quarter, 91 out of 152 metros saw price gains.

Existing condominium and co-op sales jumped 9.1% to a seasonally adjusted annual rate of 720,000 in April from 660,000 in March, and are 42.3% above the 506,000-unit pace in April 2009. The median existing condo price was $171,000 in April, which is 0.6% below a year ago.

Regionally, existing-home sales in the Northeast surged 21.1% to an annual level of 1.09 million in April and are 41.6% higher than a year ago. The median price in the Northeast was $243,000, up 2.1% from April 2009.

Existing-home sales in the Midwest rose 9.9% in April to a pace of 1.33 million and are 29.1% above a year ago. The median price in the Midwest was $146,400, up 5.8% from April 2009.

In the South, existing-home sales increased 8.6% to an annual level of 2.14 million in April and are 23.0% higher than April 2009. The median price in the South was $150,000, up 1.2% from a year ago.

Existing-home sales in the West fell 6.2% to an annual rate of 1.21 million in April but are 5.2% above a year ago. The median price in the West was $212,400, up 3.8% from April 2009.

For more information, visit www.realtors.org.

RISMEDIA, May 24, 2010—Economists participating in a recent NAHB Construction Forecast Conference Webinar agreed that the housing market is on the road to recovery, but cautioned that several factors could contribute to a bumpy ride in the coming months.

“Home buyer tax credits clearly did their job and got people back into the marketplace,” said NAHB Chief Economist David Crowe, who also served as moderator of the webinar.

With the expiration of the tax credits in April, Crowe said the housing momentum is being carried forward by low interest rates, pent up household formations, stabilizing prices and budding employment growth.

However, many factors continue to drag on housing at this time–including the critical shortage of credit for new and existing projects, competition from short sales and foreclosures and regional economic disparities.

The availability of acquisition, development and construction (AD&C) financing remains a major concern as the industry moves forward, Crowe said. “Builders still tell us that credit is extremely tight. Banks are saying not so much. That gap is an indication that something is broken, at least when it comes to residential construction.”

NAHB is forecasting 552,000 single-family starts in 2010, up 25% from last year’s 445,000 level, which was the lowest annual output since 1959 when the government began collecting this data.

Suffering from an acute shortage of available financing and a significant shadow inventory of homes lost to foreclosure that are competing against normal inventory, Crowe said that multifamily housing starts are expected to lose further ground this year, falling 18% to 93,000 units, before rebounding to 150,000 units in 2011.

Crowe anticipates that nationwide home prices will remain flat this year and post a modest increase in 2011 and that mortgage interest rates will continue to stay low, barely breaking 6% by the end of this year, and not rising much above that level through 2011.

The road back to normal levels of residential construction will be longer for some states than others. By the end of 2011, the top 20% of the states will see their production levels back to normal. Those states include Texas, Oklahoma, Montana, Wyoming, Tennessee, Louisiana, Mississippi, Alabama, Arkansas and Kansas. The previous boom markets in California, Arizona, Florida and Nevada, along with the Great Lake states of Michigan, Indiana, Ohio, Illinois and Wisconsin that were hit by deep cuts in auto production and manufacturing, will be the last ones to recover.

Housing Demand Reflects Job Growth
Like his co-panelists, Mark Zandi, chief economist of Moody’s Analytics, said that housing will improve as the job market does. He forecast that the economy will average monthly job gains of 125,000 this year, 250,000 in 2011 and 300,000 in 2012.

Mirroring anticipated employment growth, Zandi expects GDP to rise 3% this year, approximately 4% in 2011 and closer to 5% in 2012.

The key factor driving housing demand is jobs, said Zandi. “We’re not going to get home sales unless we have jobs. Here the prospect is good. Business balance sheets are in good shape and improving rapidly. These are pre-conditions for better job growth and we should see the job market steadily gain traction.”

Zandi forecast that overall housing starts will total 700,000 units this year, close to 1 million in 2011 and about 1.7 million by 2012, which he describes as close to trend and consistent with demographics in a normal functioning economy.

Driven largely by the high foreclosure rate, Zandi expects that home prices will continue to fall modestly in 2010, down about 5% on a national average. He calculates that the difference between supply and demand is approximately 750,000 units annually, and it will require until the end of 2011 to work off this extra inventory.

“The good news,” he said, is “as the job market improves, so will household formations and demand. So I anticipate we will work off the excess inventory more quickly than the two-year period.”

He added that most of the housing surplus is regionally concentrated in Florida, around Atlanta, along the South Carolina coast, in Las Vegas, Phoenix, and Tucson and in the central valley of California.

Consumers Fuel Recovery
Taking the most bullish approach to the ongoing recovery, Chris Varvares, president of Macroeconomic Advisers, LLC, forecast that GDP will rise 3.7% this year and that housing starts will total 750,000, well above the Blue Chip Economic Indicators consensus of 690,000.

“Personal consumption expenditures are making a very solid recovery,” said Varvares. “Residential investment is going from a drag to a contributor. The difference between our forecast and the consensus is the strength in personal consumption and housing.”

Although the huge number of foreclosures on the market are accounting for about 300,000 to 400,000 fewer starts than there otherwise would be, Varvares said the fundamentals still point to a solid trajectory for housing.

“With prices stabilizing, demand is picking up and we expect builders to respond. By the end of 2011, we expect about 1.2 million housing starts. This suggests we can have recovery in starts this strong while simultaneously working down excess housing inventory.”

The panelists were in unanimous agreement on a number of areas–the Federal Reserve will likely continue to keep interest rates near rock bottom levels at least through the end of the year; the chance of a double dip recession is extremely slim; and policymakers will need to take action within the next two years to increase revenues and cut spending to rein in the burgeoning structural deficit.

For more information, visit www.nahb.org.

RISMEDIA, May 20, 2010—Nationwide housing starts rose 5.8% to a seasonally adjusted annual rate of 672,000 units in April 2010 as the deadline for an important home buyer tax incentive arrived, according to figures released by the U.S. Commerce Department.

“While some of the starts activity noted in the report reflected homes for which buyers had just signed a contract at the tail-end of the tax credit program, the rest was probably tied to builders replenishing their inventories in preparation for the post-tax credit era,” said Bob Jones, Chairman of the National Association of Home Builders (NAHB) and a home builder from Bloomfield Hills, Mich. “That said, builders are maintaining a cautious attitude with regard to new building as the economy and housing markets slowly recover.”

“The government’s latest numbers indicate that production of new single-family homes got a substantial boost in April as the tax credit program wrapped up and builders worked to resupply their depleted inventories,” agreed NAHB Chief Economist David Crowe. “As our latest surveys have indicated, builders are anticipating that factors such as low mortgage rates, attractive prices and the recovering employment market will replace the tax credit as incentives to buy. Meanwhile, the drop-off in building permits in April indicates that builders are working down the inventory of permits pulled in the previous month and taking care not to get ahead of the market. Builders also continue facing difficulty in obtaining project financing, which will limit the pace of a housing recovery.”

Single-family housing starts surged 10.2% to a seasonally adjusted annual rate of 593,000 units in April, the strongest rate since August of 2008. Meanwhile, multifamily starts posted an 18.6% decline to a 79,000-unit rate, offsetting a big gain posted by that sector in the previous month.

Permit issuance, which can be an indicator of future building activity, declined 11.5% overall to a seasonally adjusted annual rate of 606,000 units in April. This reflected a 10.7% decline to a 484,000-unit rate on the single-family side and a 14.7% decline to a 122,000-unit rate on the multifamily side.

Three out of four regions posted solid gains in new housing production in April. Combined single- and multifamily starts rose 23.9% in the Northeast, 16.7% in the Midwest and 7% in the South. The West registered a 13.3% decline.

Conversely, permit issuance was down in three out of four regions in April. The Northeast posted a 7.4% decline, the South registered a 14.3% decline and the West posted a 16% decline. Permit issuance remained unchanged from the previous month in the Midwest.

For more information, visit www.nahb.org