Real Estate News & Views

10 fastest growing real estate markets

2008-05-10T09:42:00.000-07:00

CNN/Money magazine online featured an article on the 10 fastest growing real estate markets.

#1

McAllen, Texas
12-month forecast: 4%
Median home price: $109,000
One year price change: 2.1%
Five year price change: 23.3%
Change in foreclosure rate: 23%

#2

Rochester, N.Y.
12-month forecast: 2.7%
Median home price: $121,000
One year price change: 3.4%
Five year price change: 20.1%
Change in foreclosure rate: 5%

#3

Birmingham, Alabama
12-month forecast: 2.7%
Median home price: $156,000
One year price change: 2.9%
Five year price change: 29.4%
Change in foreclosure rate: 20%

#4

Syracuse, N.Y.
12-month forecast: 2.6%
Median home price: $126,000
One year price change: 0.8%
Five year price change: 29.5%
Change in foreclosure rate: 27%

#5

Buffalo/Niagara Falls, N.Y.
12-month forecast: 2.4%
Median home price: $105,000
One year price change: 1.6%
Five year price change: 24.5%
Change in foreclosure rate: 14%

#6

New Orleans, La12-month forecast: 2.2%
Median home price: $158,000
One year price change: 1%
Five year price change: 43.7%
Change in foreclosure rate: 49%

#7

Scranton, P.A.
12-month forecast: 2.2%
Median home price: $128,000
One year price change: 7.2%
Five year price change: 41.1%
Change in foreclosure rate: 8%

#8
Grand Rapids, Mich.
12-month forecast: 1.9%
Median home price: $124,000
One year price change: -3%
Five year price change: 8.3%
Change in foreclosure rate: 37%

#9

Baton Rouge, La.
12-month forecast: 1.9%
Median home price: $170,000
One year price change: 5.7%
Five year price change: 38.3%
Change in foreclosure rate: 14%

#10

El Paso, Texas
12-month forecast: 1.8%
Median home price: $134,000
One year price change: 6.9%
Five year price change: 51.9%
Change in foreclosure rate: 32%

Information is power, using the information wisely is super power.

If you are young, energetic, and an avid investor, the decision to invest in these top cities can certainly bring in good ROI, hopefully in the short period of time. However, if you want to find a retirement home or move to a more affordable place. You have to decide whether you really want to move to and live in any of these cities.

http://money.cnn.com/galleries/2008/moneymag/0805/gallery.resg_gainers.moneymag/10.html

Challenging Time.

2008-04-27T18:39:00.001-07:00

According to my own schedules and my marketing activities - I also have a challenging Real Estate market.

I had several showing appointments and I took my clients out to show several bank owned properties in Hemet and Murrieta in these last several weeks.

The problems were that most listings were either already have offers and or pending without the listings being updated to show the current status.
I tried to call most agents before I showed the homes. Some listing agents never answered their phone calls. Some of the agents are out of town agents and they never RETURN the phone calls.

I showed several homes that were attractively priced and great properties for new home buyers. The buyers were ready to put in the offer but we found out that the bank already had several offers in their pockets and they are waiting for the highest or the higher offer before they are making up their minds.

My buyers are first time home owners and they are very conservative and they want to make a 'LOWER' than the asking prices. Most of the agents told me not to waste my time or efforts.

The scenerio was not the same as when I showed several homes in Moreno Valley to my other buyers about three months ago. Most of the homes that were REO were not in good condition and most of the listing agents told me to submit the offer with, anywhere from $25,000 to $50,000 lower than the asking prices.

Unfortunately my buyers already own two homes and those homes are my listings.
I am trying and have been for over 6 months to sell one of these homes.
Alas there were not many interests since they are priced higher than the market will bear.

Challenging time indeed.
Jieranai

Real Estate News, Challenging Market

2008-04-27T18:35:00.000-07:00

According to Forbes magazine. These are 10 most difficulty areas in Real Estate.

Daily Real Estate News | April 24, 2008
10 Most Challenging Housing Markets

The hardest places to sell homes are those with falling prices and a large inventory of unsold homes.

Forbes magazine, which examined markets all over the country, concluded that Florida has the most markets that are really in the doldrums. Several cities there are overbuilt, saddled with lousy loans and flat sales.

Jonathan Miller, president of Miller Samuel, a Manhattan-based real estate appraisal company that assisted with the analysis, says it is hard for a city to climb out of a slowdown because in the best of circumstances there's generally a three- to six-month lag between the time buyers start putting a serious dent into the inventory and the time when prices start to improve.

Here are the 10 markets where Forbes says the sales opportunities are the most challenging:

Miami
Orlando
Phoenix
Tampa
Los Angeles
Washington, D.C.
Chicago
Baltimore
San Diego
Denver

Sources: Forbes, Matt Woolsey (04/15/08)

NEW U.S. MONTHLY HOUSE PRICE INDEX ESTIMATES 0.6 PERCENT PRICE

2008-04-23T22:49:00.000-07:00

For Immediate Release
April 22, 2008
NEW U.S. MONTHLY HOUSE PRICE INDEX ESTIMATES 0.6 PERCENT PRICE
INCREASE BETWEEN JANUARY AND FEBRUARY

WASHINGTON, DC – U.S. home prices rose approximately 0.6 percent on a seasonallyadjusted basis between January and February, according to OFHEO’s new monthly House Price Index. For the 12 months ending in February, U.S. prices fell
2.4 percent. Since its peak in April 2007, the index is down 3.1 percent.

The OFHEO monthly index is calculated using purchase prices of houses backing
mortgages that have been sold to or guaranteed by Fannie Mae or Freddie Mac. The
index, introduced in OFHEO’s fourth quarter 2007 House Price Index (HPI) report,
provides a timely indicator of house price conditions for the nation and each of the nine Census Divisions. For the nine Census Divisions, seasonally-adjusted monthly price changes from January to February ranged from -0.6 percent in the Mountain Census Division to 2.2 percent in the New England Division.

Changes in the national index, which is constructed as a weighted average of data from the nine Census Divisions, reflect movements in market prices as well as changes in the mix of geographic areas within Census Divisions. Normally changes in the mix are relatively small. However, in February, the share of reported sales volumes rose in states with stronger housing markets, which significantly increased estimated appreciation above what it would have been in the absence of such effects. Holding the weights for each state constant, the national increase would have been only 0.3 percent in February.

Monthly index values and appreciation rate estimates are provided in the table and graph on the following pages. All estimates are seasonally adjusted and, as with OFHEO’s quarterly HPI, will be revised in later releases. As indicated in OFHEO’s fourth quarter 2007 HPI report, quarterly HPI releases will include updated monthly data presented in the same format as the attached table.

For detailed information concerning the new monthly HPI, please see the HPI Frequently Asked Questions (FAQs), at http://www.ofheo.gov/hpi.aspx?Nav=60.

The next release of monthly index data will be included as part of OFHEO’s next quarterly HPI, released May 22, 2008. That release will include quarterly index data through the first quarter of 2008 and will report monthly estimates through March.

Please e-mail ofheoinquiries@ofheo.gov for a printed copy of this report.
###

http://www.ofheo.gov/newsroom.aspx?ID=429&q1=1&q2=None

top 10 things homebuyers and sellers need to know about

2008-04-18T13:10:00.000-07:00

Each month, FrontDoor.com lists the top 10 things homebuyers and sellers need to know about a different topic. So stay tuned for tips on everything from foreclosures to taxes.
FrontDoor.com's Top 10 Red Flags for Homebuyers
Sellers don't always tell the whole truth to potential homebuyers, especially if they're eager to sell (or "motivated" in real estate lingo). But you can't afford to get a professional inspection of every house you tour. So before you spring for the pro, narrow down your choices by doing your own pre-inspection to spot potential problems.

Mass Exodus from the Neighborhood
Don't let a home's curb appeal keep you from glancing down the street. Are there several other homes for sale? Are nearby businesses boarded up or vandalized? Get the scoop from the neighbors. If everyone else wants to leave the street, maybe you should, too -- before you're stuck with a bad investment. Read More >>
Mediocre Maintenance
Three layers of roofing and gutters with plants growing in them are signs the owners aren't big on maintaining their home. What else did they neglect? Read More >>
Foundation Failures
Check out the yard grading. If the yard slopes towards the house, it could cause water to run down the foundation walls or into the basement, which will be costly to repair. Scour the foundation for damage. Bulges or cracks bigger than 1/3 inch can mean the house has serious structural issues.
Read More >>
Bad Smells (inside or outside)
Take a big whiff of the air inside and outside the house. Do you smell anything funky? If you can't smell anything but the huge baskets of potpourri all over the house, this could be a red flag. Read More >>
Faulty or Old Wiring
While you're probably not an electrician, make sure all the switches and outlets in the house function properly. Flickering lights, circuits that don't work and warm or hot outlets or faceplates are all symptoms of wiring problems. Read More >>
Fresh Paint... on One Wall
New paint can really spruce up drab walls, but it can also hide bigger problems, like water damage, mildew or mold. If the room smells strange or if you see stains or saggy walls or ceilings, have an inspector look for mold and leaks. Read More >>
Locked Doors and Blockades
Ask about any rooms that are "off limits" during your home tour, and arrange to see them later if you're interested in the house. Read More >>
Foggy or Non-Functioning Windows
Check for water in between double-paned windows and make sure all the windows are functional. Read More >>
Structural Walls or Floors Have Been Removed
Sure you love the open floor plan, but was the house always open or did the homeowners renovate? If they removed a load-bearing wall without adjusting the framing, it can shift weight to other parts of the house. Hire a structural engineer if you think any renovations are questionable. Read More >>
Bugs!
No one wants a house with a pest problem -- be it roaches, mice or worst of all, termites. Be on the lookout for unwelcome creatures as you tour the house. Even if no foes pop out while you're there, consider a separate termite inspection if you're thinking of purchasing the property. Read More >>
BOTTOM LINE: Always get a professional inspection
Yeah, it's a little expensive, but it's worth every penny. Don't kid yourself: skipping a home inspection is not a good way to cut homebuying costs. You'll end up paying more in the long run when problems inevitably arise.

Read More >>

http://www.frontdoor.com/top10

Risk Of Price Declines

2008-04-12T10:14:00.000-07:00

Although the risk of price declines in California markets continued to rise, the rate of increase was "significantly below" the third quarter. For the eight California MSAs in the top 50, the average increase in risk score was 2.1 percent, compared to a 19 percent increase between the third and fourth quarters.

Among the top 50 MSAs, the 14 PMI determined face a greater than 50 percent chance of price declines in the next two years were:
• Riverside-San Bernardino-Ontario, Calif. (93 percent)
• Las Vegas-Paradise, Nev. (92 percent)
• Orlando-Kissimmee, Fla. (85 percent)
• Ft. Lauderdale-Pompano Beach-Deerfield Beach, Fla. (84 percent)
• Phoenix-Mesa-Scottsdale, Ariz. (84 percent)
• Santa Ana-Anaheim-Irvine, Calif. (81 percent)
• West Palm Beach-Boca Raton-Boynton Beach, Fla. (80 percent)
• Sacramento-Arden-Arcade-Roseville, Calif. (78 percent)
• Tampa-St. Petersburg-Clearwater, Fla. (78 percent)
• Los Angeles-Long Beach-Glendale, Calif. (77 percent)
• San Diego-Carlsbad-San Marcos, Calif. (73 percent)
• Oakland-Fremont-Hayward, Calif. (64 percent)
• Miami-Miami Beach-Kendall, Fla. (61 percent)
• San Jose-Sunnyvale-Santa Clara, Calif. (51 percent)

MAKING SENSE OF THIS:

Price declines also present the biggest opportunity for the buyers. Here in the Riverside County any home that either bank owned or a short sale and is listed way below market will get 3-5 offers within the first few days after the listing show up in the MLS. Sometimes, it is sold from $10K to $20K more than the asking price.
It is the buyer's market but it is also back to the bidding game. The highest offer/bidder will win and get the home.

February pending home sales index drops

2008-04-10T20:50:00.000-07:00

February pending home sales index drops to record lows

Pending sales of existing homes were weaker than expected in February and 21.4 percent below last year at this time, the NATIONAL ASSOCIATION of REALTORS® (NAR) reported Tuesday. The NAR Pending Home Sales Index measures pending sales contracts and is seen as a barometer of future home sales activity. However, the Index rose 2.1 percent for the month in the West.

MAKING SENSE OF THE STORY

The Index fell 1.9 percent from 86.2 in January to 84.6 in February, the lowest level since NAR began publishing the Index in 2001. Economists had expected a drop of 0.7 percent.

Despite the decline, NAR expects home sales to remain flat before picking up during the latter half of the year, when increases in loan limits for jumbo mortgages are expected to help improve liquidity.

By region, the Index in the West, which includes California, rose 2.1 percent.

http://www.car.org

Housing Market

2008-04-10T20:42:00.000-07:00

Lenders retreat as housing market plummets

The national housing market decline and resulting financial institution write-downs are beginning to hit home in the form of tighter credit, even for highly qualified borrowers with solid-gold credentials. As lenders clamp down on new borrowers and cap existing home equity credit lines in an effort to limit future exposure, everyone from car dealers to landscape architects feels the effects.

MAKING SENSE OF THE STORY:

Credit fuels economic growth by providing the means for people to purchase goods and services. By 2004, Americans had borrowed more than $180 billion based on their home equity, plowing record amounts of cash back into the economy with the resulting purchases.

In particular, lenders are cutting back on loans and lines of credit backed by real estate assets or raising interest rates and qualifying criteria. By year-end 2007, home equity lending plunged to only $26 billion, according to the Federal Reserve.
According to economists, other factors also are at play. Slowing wage growth, rising prices for staples, falling stock portfolios and the cost of servicing existing debt all are causing consumers to rethink their spending habits

Clinton: Protect reputable home lenders

2008-03-24T11:34:00.000-07:00

Clinton: Protect reputable home lenders

By CHARLES BABINGTON, Associated Press Writer
1 hour, 32 minutes ago

PHILADELPHIA - Democrat Hillary Rodham Clinton proposed several remedies to the nation's home mortgage problems Monday, including one tool more often associated with Republicans than Democrats.

The New York senator proposed greater protections for lenders from possible lawsuits by investors, a variation of so-called tort reform. For years, GOP leaders have called for restrictions on what they consider unwarranted lawsuits against businesses. Democrats have often resisted them on grounds they limit injured parties' legitimate rights to redress.

"Many mortgage companies are reluctant to help families restructure their mortgages because they're afraid of being sued by the investment banks, the private equity firms and others who actually own the mortgage papers," Clinton said in what she billed as a major address on the economy at the University of Pennsylvania.

"This is the case even though writing down the value of a mortgage is often more profitable than foreclosing," she said. Clinton said she would offer legislation "to provide mortgage companies with protection against the threat of such lawsuits," but provided no further details.

Brian Deese, a Clinton economic adviser, said different categories of investors can have different interests in how a mortgage is handled. Clinton's legislation would state that a mortgage provider's obligations are to "investors as a whole," he said in an interview.

Clinton also called on President Bush to appoint "an emergency working group on foreclosures" to recommend new ways to confront housing finance troubles. She said the panel should be led by financial experts such as Robert Rubin, who was treasury secretary in her husband's administration, and former Federal Reserve chairmen Alan Greenspan and Paul Volcker.

Clinton and Sen. Barack Obama are campaigning heavily in Pennsylvania, which holds its presidential primary April 22 to allocate 158 delegates, the largest single prize left in the campaign season. There were 34,000 foreclosure notices issued in Pennsylvania last year, Clinton's campaign said.

Clinton said she supports pending legislation to establish an auction system for hundreds of thousands mortgages in default. Under the plan, drafted by Democratic lawmakers, lenders "could sell mortgages in bulk to banks and other buyers," Clinton said, who in turn would "restructure them to make them affordable for families, because they know the government will guarantee them once they're reworked."

The Federal Housing Administration, she said, "should also stand ready to be a temporary buyer to purchase, restructure, and resell underwater mortgages" if the auction plan falls short.

Clinton said a recently enacted $168 billion stimulus package "did next to nothing to help homeowners and communities struggling with foreclosure."

"If the Fed can extend $30 billion to help Bear Stearns address their financial crisis," she said, "the federal government should provide at least that much emergency help to families and communities address theirs."

Clinton's remarks built on her earlier proposals on the housing issue. Last week she called for a new stimulus package to include $30 billion to help state and local governments buy foreclosed properties, restructure mortgages, and undertake "anti-blight programs." She proposed another $10 billion for state housing agencies to refinance "unworkable mortgages."

Clinton also has called for a five-year freeze on interest rates for all subprime mortgages, which often go to borrowers with poor credit ratings.

Obama was not campaigning Monday. His campaign manager, David Plouffe, played down Obama's chances of winning Pennsylvania.

In a phone call with reporters, Plouffe called Clinton "the prohibitive favorite" in the state, and said Obama would try to do "as well as we can there."

Plouffe said Obama, if nominated, would put more states in play in the fall than Clinton could, because he would draw more support from independents.

http://news.yahoo.com/s/ap/20080324/ap_on_el_pr/clinton_housing

Today's News

2008-03-24T10:52:00.000-07:00

Existing home sales rise in February
By MARTIN CRUTSINGER, AP Economics Writer
1 hour, 11 minutes ago

WASHINGTON - After falling for six straight months, sales of existing homes posted an unexpected increase in February which may have reflected more aggressive price cutting by sellers in some parts of the country, a real estate trade group reported.

The National Association of Realtors said that sales of existing homes rose by 2.9 percent in February to a seasonally adjusted annual rate of 5.03 million units. It was the biggest increase in a year and caught economists by surprise. They had been expecting a small decline.

The trade group reported that the median existing sales price in February fell to $195,900. That was the largest year-over-year drop on records that go back to 1999.

Lawrence Yun, chief economist for the Realtors, said that prices in some formerly hot markets in California and Florida were seeing significant price declines now as sellers try to attract buyers.

Analysts cautioned against reading too much into the one-month rise in sales. Many economists are predicting that the steep slump in housing will not bottom-out until later this year after prices fall further and allow huge levels of unsold inventories to be reduced.

"We're not expecting a notable gain in existing-home sales until the second half of this year, but the (February) improvement is nother sign that the market is stabilizing," Yun said.

By region of the country, sales surged by 11.3 percent in the Northeast and were up 2.5 percent in the Midwest and 2.1 percent in the South. The only region of the country to see a decline in the sales was the West, where they dropped by 1.1 percent.

Sales of existing homes fell by 12.7 percent in 2007, the biggest decline in 25 years. Over the past two years, housing has been in a steep downturn made worse by a severe credit crunch as financial institutions tightened their lending standards in reaction to their multibillion-dollar losses on mortgages that have gone into default.

The steep slump in housing has raised concerns about a possible recession. Democrats are pushing the Bush administration to do more to stem a tidal wave of mortgage foreclosures to keep more unsold homes from being dumped on an already glutted market.

Sen. Hillary Clinton, campaigning for the Democratic presidential nomination, on Monday called on President Bush to appoint an emergency working group on foreclosures to recommend new ways to confront the housing crisis.

"Over the past week, we've seen unprecedented action to maintain confidence in our credit markets and head off a crisis for Wall Street banks," Clinton said. "It's now time for equally aggressive action to help families avoid foreclosure and keep communities across this country from spiraling into recession."

How To Stay Positive!

2008-03-23T00:35:00.000-07:00

How To Stay Positive!
Ask Dr. Maya: How to Stay Positive in the Wake of Negative Real Estate Reports

RISMEDIA, March 24, 2008–Do you know how to avoid ‘toxic’ people? Or even what signs to look for to recognize them? This is just one insight among many this week from Dr. Maya Bailey, Ph.D., who tells real estate professionals how to remain positive against an onslaught of negative press surrounding today’s real estate market.

Q. Dear Dr. Maya: With so much negativity from the media and people around me, how can I possibly stay positive?

A. Excellent question. I get asked that a lot so I created eight ways that you can create and maintain a positive mental attitude in today’s market.

1. Avoid toxic people

What does this mean? Who are the toxic people?

Toxic people can be well-meaning people but when they talk to you, they are coming from a negative attitude about money, finances, and especially about the current real estate situation.

2. If you’ve tried everything and exhausted always to avoid toxic people, then you may have to set an internal boundary.

You can do this very simply by having your own inner conversation if someone is saying something negative to you on the outside.

3. Avoid the media

Why? Remember that the intention of the media is to sell newspapers and magazines. The more they can paint a negative and fearful picture, the more their sales go up.

Why subject yourself to slanted, negative spins on the economy when you can find just as much information to point to the positive?

4. Successful real estate professionals do well in any market

Were you aware of that? Knowing that fact, none of us can continue to use the excuse about the market being bad.

In fact, I am coaching several clients right now who in the last six months have doubled and tripled their incomes.

In addition to the right marketing strategies and regular lead generation activities, you could help yourself with this empowered belief:

“I now draw to me clients who are ready, willing and able to make a transaction in the next 30 days.”

5. Look for the opportunity in today’s marketplace

There are many opportunities in today’s market and successful real estate professionals are taking advantage of them.

Did you know that Donald Trump is buying up as much property as he can? Why do you think that is? He is a smart businessman, to say the least, and knows that this is the best time to buy.

Let your prospective clients know this and then say to them, “Let’s get you a deal.” Few could resist this invitation.

6. Remember that your success depends on your mindset, not on the outer conditions of the market.

“If you believe you can or you can’t, either way you are right,” Henry Ford.

What mindset do you choose to nurture inside yourself? Do you want to believe, “I can” or “I can’t?” Your beliefs create your reality so whatever you choose to believe will become true for you.

7. Remember to engage the Law of Attraction as one of your most powerful tools

The law of attraction states that you get what you focus your attention on. Furthermore, your beliefs create your reality so choose your beliefs carefully.

Here’s a tip: instead of saying “I can’t possibly succeed in today’s market,” choose instead to focus one of these beliefs:

“I achieve whatever I set my mind to.”

“I am a money market in any situation.”

“I attract clients who appreciate and respect my expertise.”

“My success depends on my attitude, not on any outer circumstances.”

8. Be proactive

In any marketplace there are always people wanting to buy and sell homes. They need your help and they need your expertise.

Clear out any self limiting beliefs that inhibit your ability to pick up the phone.

Follow the suggestions mentioned above and you’ll be happy to notice that are only are you staying more positive, but also your income is increasing as well.

Visit Dr. Maya’s website:
http://www.90daystomoreclients.com

http://rismedia.com/wp/2008-03-21/ask-dr-maya-how-to-stay-positive-in-the-wak

Beliefs

2008-03-23T00:19:00.000-07:00

To successfully use the Law of Attraction, you need to be clear about what you want.

Empowered beliefs that will help you create the income you want:

• I do deserve an abundance of prosperity
• It’s okay for me to be grateful for what I have and still want more
• Money is neutral and can be used for good or evil
• Money can’t buy me happiness, but I can create a better life for myself and people around me by being prosperous
• Some people are honest and some are not. It has no relationship to whether or not they have money
- Dr. Maya Bailey, Ph.D

How Honest Harry Gets the Job Done !

2008-03-21T17:35:00.001-07:00

How I Sold It
Honest Harry Gets the Job Done

With little to showcase, sales associate Harry Ackley decided to tell the brutal truth about his unmarketable listing in Plymouth, Mich., and his peers liked the approach.

BY MICHELLE HOFMANN

Location: Plymouth, Mich.
Square footage: 704 square feet
Lot size: 7,695 square feet
Bedrooms: 2
Bathrooms: 1
Year built: 1941
Extras: “Not much to speak of.”

THE CHALLENGE: When Harry Ackley, a sales associate with Coldwell Banker Schweitzer-Bake Real Estate in Plymouth, Mich., secured a listing from a former client in March 2004, he was worried how he was even going to get people to view the property. “The house was a complete disaster,” Ackley recalls. “Just saying, ‘fixer-upper’ or ‘handyman special’ was not going to get it done. I needed to do something drastic to sell this one.”

How did you overcome the challenge?

ACKLEY: There was no point trying to cover up anything, so I didn’t try. In the listing’s public remarks section, I wrote: “The bottom of the barrel! I have avoided listing this one as long as possible, since it will take a miracle to sell. Sure, it has two bedrooms, one bathroom, and an oversized lot in a desirable Plymouth neighborhood. But beyond this, there’s nothing else that’s positive.”

I asked and received permission from the seller before I wrote the remarks, mind you, but I just went with the brutal truth. It sounds crazy, I know, but I received so many calls from real estate professionals, far and wide, who said they wished they could be as honest in their remarks as I was.
Many of them took the listing to their weekly marketing meetings and brought it to their colleagues’ attention. Someone in my office even framed the remarks. It’s hanging on my office wall.

What was the selling price?

ACKLEY: The property listed for $119,900 in March 2004 and sold for $112,500 in April 2004. It was only on the market for 17 days. We closed May 4, 2004.

Riverside County population forecast to double by 2050, ranking it No. 2 in state

2008-03-11T02:05:00.000-07:00

By JIM MILLER
Sacramento Bureau

SACRAMENTO - Go-go growth is expected to more than double Riverside County's population by 2050, making it the state's second largest county.

Only Los Angeles County will top Riverside County and its estimated 4.7 million residents by midcentury, according to new estimates by the state Department of Finance.

"Let's face it, we got the land," said Assemblyman Paul Cook, R-Yucca Valley, whose district includes Moreno Valley, Perris and other fast-growing parts of Riverside County. "We have to make sure we have the roads, the infrastructure, the environmental mitigation, the water, all these challenges."

The state's population will be nearly 60 million by midcentury, which is 22 million more than today. More than half of the state's residents will be Hispanics, up from 36 percent currently, according to the Department of Finance.

The state report studied demographic trends such as immigration, births and deaths. The estimates did not take into account any shortages that could hold down growth, such as limited water, housing or infrastructure.

All told, nearly one-half of California's population in 2050 will live in five of its 58 counties, all in Southern California -- Los Angeles, Riverside, San Diego, Orange and San Bernardino -- according to the state report.

Riverside County currently is the fourth-most populous, with an estimated 2,031,625 people. San Bernardino County is in fifth place, with 2,028,013.

In California history, only Orange County in the 1960s had the kind of growth that Riverside County is experiencing, said Mary Heim, chief of the Department of Finance's demographic research unit.

"At some point in time, the growth will be like Orange County and taper off," Heim said. "But as long as people are willing to have long commutes in return for more affordable housing, that growth will continue."

State Sen. Jim Battin, R-La Quinta, said he thinks the county maintained its quality of life during recent growth waves. What it will be like in 2050, with more than twice as many people, is still an open question, he said.

"It will present a lot of challenges for the county to make sure we have the facilities and infrastructure that we need and have to adopt policies to recognize that the growth is coming instead of trying to prevent it from coming, because you can't," Battin said.

Reach Jim Miller at 916-445-9973 or jmiller@PE.com

Population 2050

These are projected to be the state's five largest counties by population at midcentury:

1. Los Angeles County: 13.06 million

2. Riverside County: 4.73 million (up from fourth)

3. San Diego County: 4.51 million

4. Orange County: 3.99 million

5. San Bernardino County: 3.66 million (ranking unchanged)

Source: California Department of Finance

http://www.pe.com/localnews/inland/stories/PE_News_Local_D_population10.410f243.html

Why San Francisco has The Highest Gas Price In the Nation?

2008-03-04T10:33:00.000-08:00

Someone posted a question on my Baby Boomers Yahoo Group.
So, here is my answer:

Glancing at this Median Sales Price of Existing Single-Family Homes
for Metropolitan Areas report, (compiled by the National Association
of of REALTORS®), I can see these numbers and can understand why,
these prices reflect the cost of living in each area.

US Median Sales Price of Existing Single-Family Homes is $217.8 in
2007.

San Francisco-Oakland-Fremont, CA is the 2nd highest in the nation
for at $805.4K for 2007. (up 5.5% from 2006)

San Jose-Sunnyvale-Santa Clara area is the highest in the nation at
$836.8 for 2007 (up 11.2%. from 2006)

Anaheim-Santa Ana, CA (Orange Co.) at $699.6
Los Angeles-Long Beach-Santa Ana, CA $589.2
San Diego-Carlsbad-San Marcos, CA $588.7
Riverside-San Bernardino-Ontario, CA $381.4

New York-Wayne-White Plains, NY-NJ $540.3
NY: Nassau-Suffolk, NY $477.2

Seattle-Tacoma-Bellevue, WA $386.9

Washington-Arlington-Alexandria, DC-VA-MD-WV $430.8

Miami-Fort Lauderdale-Miami Beach, FL $365.5

Youngstown-Warren-Boardman, OH-PA $78.9

http://www.realtor.org/Research.nsf/files/MSAPRICESF.pdf/$FILE/MSAPRICESF.pdf

> Weekly U.S. Retail Gasoline Prices, Regular Grade
> Dollars per gallon, including all taxes
>
> San Francisco takes the prize!! Why is gas so high in San Francisco?
>

The Bad News.

2008-02-08T22:52:00.001-08:00

Now you can see why our Real Estate industry is in turmoil.
Many mortgage frauds all over the country. The only consolation, the crooks are getting prosecuted but too late for many of the banks and the mortgage companies who lost so much money already. This is bad for the lending industry.

This is only one of the many, many stories on Originator Times.

Broker Arrested for Scamming at Least 15 Million
Tuesday, November 20, 2007 -
By Staff Writer, Originator Times

STUART, FL – Matthew Bevan Cox was sentenced this week to 26 years and four months in jail and hit with $6 million in restitution for mortgage fraud. Cox was arrested in his Nashville, Tennessee home in November of 2006 and plead guilty to charges in April 2007. Cox had been on the run from police and the FBI after arrest warrants were issued in August of 2004 for conspiracy, stolen identification, mail and wire fraud, money laundering, and social security number fraud. At the time arrest warrants were issued, Cox was already on the run from Florida police for violating his probation for a prior incident in that state.

Cox worked as a mortgage broker and is suspected of running hundreds of mortgage-related scams in at least five states including Georgia, Florida, North Carolina, South Carolina, and Alabama with an associate that he met on Match.com. Reports indicate Cox got away with at least $15 million by defrauding mortgage companies and duping desperate sellers. The pair acted as though Cox was the client and his partner, Rebecca Marie Hauck, was a real estate agent. The duo scoped out MLS ads and pounced on those offering partial owner financing, only to leave the mortgage unpaid and sending the property into foreclosure.

Cox, who has not used his real name since 2003, used the names Maxwell Price, David Richard Freeman, Gerald Scott Cugno, Michael Shawn Shanahan, Gary Lee Sullivan, Michael John Eckert, Michael White, Kevin White, David White, and James Redd. At the time of his arrest, he was operating the Nashville Restoration Project.

http://originatortimes.com/content/templates/standard.aspx?articleid=2630&zoneid=1

Another story:

Fraud Lands Two Brokers and Insider in Prison
Wednesday, August 22, 2007 - By Staff Writer, Originator Times
Click to Review

NEWNAN, GA - Joseph White of Southern Lenders Mortgage and Michael Jones of Infinity Mortgage have both been convicted and sentenced for their participation in an $11 million fraud perpetrated against nBank, with the participation of a then nBank vice president, Ronald Walton.

White, Jones, and Walton operated an elaborate scheme whereby they diverted funds from a broker line of credit issued to Southern Lenders mortgage and Infinity Mortgage by nBank.

According to court documents, once White and Jones closed on transactions with their nBank credit lines, they then sold the same loans to other investors and then diverted the proceeds to pay personal and business expenses.

White diverted $3,700,000 in proceeds from 34 loans and Jones $1,835,000 from 23 loans.

The court found that Walton, then a senior vice president at nBank, managed the division of nBank responsible for broker lines of credit to mortgage brokers. The fraud perpetrated on nBank by White, Jones, and several additional brokers was carried out with the cooperation of Walton, who received commissions from nBank based upon the number of loans nBank funded for brokers. The fraud against nBank was facilitated by Walton knowingly assisting the brokers in circumventing the nBank security controls that were specifically in place to prevent such frauds.

“This case involved the defrauding of a federally insured bank by various mortgage brokers, aided by an insider who was an officer at the bank,” said United States Attorney David E. Nahmias. “The integrity of the banking system and soundness of the lending industry is of importance to all citizens.”

Walton was sentenced to serve over 8 years in federal prison, White will serve over 4 years, and Jones will serve over 3 years for their participation in the fraud

Many on the bottom of this page:
http://originatortimes.com/content/templates/standard.aspx?articleid=2520&zoneid=5

There are many more stories on this site:
http://originatortimes.com/

The Good News.

2008-02-08T22:45:00.000-08:00

I subscribed to Original Times Newsletter and I learn about the latest news in the Mortgage Loan industry.

Purchase Applications Up in Latest Survey
Wednesday, February 06, 2008 - Mortgage Bankers Association

WASHINGTON, D.C. - The Mortgage Bankers Association (MBA) released its Weekly Mortgage Applications Survey for the week ending February 1, 2008. The Market Composite Index, a measure of mortgage loan application volume, was 1086.6, an increase of 3.0 percent on a seasonally adjusted basis from 1054.9 one week earlier. On an unadjusted basis, the Index increased 4.4 percent compared with the previous week and was up 73.2 percent compared with the same week one year earlier.

The Refinance Index decreased 1.0 percent to 5054.0 from 5103.6 the previous week and the seasonally adjusted Purchase Index increased 12.0 percent to 405.3 from 362.0 one week earlier. The Conventional Purchase Index increased 10.4 percent while the Government Purchase Index (largely FHA) increased 20.9 percent. On an unadjusted basis, the Purchase Index increased 19.1 percent to 386.5 from 324.4 the previous week. The seasonally adjusted Conventional Index increased 1.0 percent to 1552.6 from 1537.6 the previous week, and the seasonally adjusted Government Index increased 23.7 percent to 309.5 from 250.2 the previous week.

The four week moving average for the seasonally adjusted Market Index is up 10.4 percent to 1007.4 from 912.2. The four week moving average is down 0.5 percent to 417.1 from 419.3 for the Purchase Index, while this average is up 16.7 percent to 4477.8 from 3837.9 for the Refinance Index.

The refinance share of mortgage activity decreased to 69.2 percent of total applications from 73.0 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 8.8 from 8.6 percent of total applications from the previous week.

The average contract interest rate for 30-year fixed-rate mortgages increased to 5.61 percent from 5.60 percent, with points decreasing to 0.98 from 1.06 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.

The average contract interest rate for 15-year fixed-rate mortgages increased to 5.09 percent from 5.04 percent, with points decreasing to 0.92 from 1.12 (including the origination fee) for 80 percent LTV loans.

The average contract interest rate for one-year ARMs decreased to 5.62 percent from 5.70 percent, with points remaining unchanged at 0.97 (including the origination fee) for 80 percent LTV loans.

http://originatortimes.com/content/templates/standard.aspx?articleid=2813&zoneid=3

Prediction for 2008.

2008-02-05T21:52:00.000-08:00

1. Seattle, Wash.
Median home price: $395,000
Annual price change from 2006: 8.9%
Projected price change to 2008: 3.09%

2. Pittsburgh, Pa.Median home price: $123,500
Annual price change from 2006: 2.7%
Projected price change to 2008: 3.37%

Columbus, Ohio
Median home price: $153,900
Annual price change from 2006: -1.2%
Projected price change to 2008: 3.49%

4. Dallas, Texas
Median home price: $156,500
Annual price change from 2006: 1.7%
Projected price change to 2008: 5.45%

5. St. Louis, Mo.
Median home price: $157,200
Annual price change from 2006: 2.7%
Projected price change to 2008: 3.01%

http://realestate.aol.com

Blue-Chip Real Estate Investment Markets Forbes

2008-02-05T21:43:00.000-08:00

If you can dream it....

FROM AOL REAL ESTATE (FORBES)

New York, N.Y.
Fifth Avenue And 70th Street
Median Home Sale Price: $2.45 million
Price Growth Since 1990: 325 percent

Chicago, Ill.
Lake Shore Drive And Route 41
Median Home Sale Price: $1.91 million
Price Growth Since 1990: 236 percent

Dallas, Texas
University Park
Median Home Sale Price: $898,640
Price Growth Since 1990: 148 percent

Philadelphia, Penn.
Walnut Street And Third Street
Median Home Sale Price: $914,115
Price Growth Since 1990: 184 percent

San Francisco, Calif.
El Camino Del Mar And Lake Street
Median Home Sale Price: $2.2 million
Price Growth Since 1990: 282 percent

http://realestate.aol.com/

Refi applications continue their rebound

2008-01-23T21:31:00.003-08:00

Refi applications continue their rebound
Interest rate on 15-year fixed-rate mortgage falls below 5%, MBA data show
By Amy Hoak, MarketWatch

Last update: 7:03 a.m. EST Jan. 23, 2008Print E-mail RSS Disable Live Quotes
CHICAGO (MarketWatch) -- The volume of mortgage applications filed last week rose a seasonally adjusted 8.3% compared to the prior week as mortgage interest rates continued their decline, the Mortgage Bankers Association reported on Wednesday.
Refinance applications drove the increase: Applications to line up new financing on an existing loan rose 16.9% during the week ended Jan. 18, compared with the previous week, according to the MBA's weekly survey.

"Refinance applications are up 92% since the beginning of November and purchase applications are up 7%," said Jay Brinkmann, the MBA's vice president of research and economics.

"With tighter credit conditions, we do not know how many of these applications will become loans, but it is clear that borrowers are responding to the 40- to 80-basis-point drop in rates we have seen since Nov. 2," he said in a news release.
Week-to-week applications for mortgages to purchase a home decreased a seasonally adjusted 4.6%, the MBA said.

Total applications were up 63.7%, compared with the same week in 2007. The four-week moving average for all loans was up 13.7%.

Fully 66% of all applications were for refinance loans in the latest week, an increase from 62.7% the previous week. Applications for adjustable-rate mortgages accounted for 9.3%, up from 9.2% the previous week.

The average interest rate for the 15-year fixed-rate mortgage, a popular option for homeowners seeking to refinance, was 4.96% last week, down from 5.07% the previous week. The 30-year fixed-rate mortgage averaged 5.49% last week, down from 5.62% the previous week.

The rate on a one-year ARM averaged 5.51%, down from 5.77%.
The MBA survey covers about half of all U.S. retail residential mortgage applications.

Amy Hoak is a MarketWatch reporter based in Chicago

Refi applications continue their rebound

2008-01-23T21:31:00.001-08:00

Mortgage Demand Reaches 4-Year High

2008-01-18T11:19:00.001-08:00

Daily Real Estate News | January 16, 2008
Mortgage Demand Reaches 4-Year High
Demand for mortgages surged last week, hitting its highest level in nearly four years as interest rates fell, the Mortgage Bankers Association reported today.

Mortgage application volume reached 906.4, an increase of 28.4 percent on a seasonally adjusted basis, up from 706 one week earlier. On an unadjusted basis, the index increased 64.8 percent compared with the previous week, which was shortened by the New Year holiday and was up 39 percent compared with the same week a year ago.

The refinance share of mortgage activity increased to 62.7 percent of total applications, up from 57.7 percent the previous week.

Adjustable-rate mortgages were only 9.2 percent of total applications.

Meanwhile, mortgage rates slipped during the week. They were:

30-year fixed-rate mortgages decreased to 5.62 percent from 5.73 percent.
15-year fixed-rate mortgages decreased to 5.07 percent from 5.21 percent.
1-year ARMs decreased to 5.77 percent from 6.04 percent

Source: Mortgage Bankers Association (01/16/08)

Just A Thought.

2008-01-18T11:16:00.001-08:00

I have a couple who are looking to buy and they really like this
neighborhood, it is older but still with many nice homes with bigger
lots. The homes are not that modern they are built around mid 90s.
Some homes are upgraded, some are mostly just original but with
fresh paint, new carpet, new kitchen counter and or cabinets.
Prices are reasonable around $490,000 to $550,000.

We drove around the neighborhood of 250+ homes and we only found
about 4-5 homes for sale. The buyers also noticed that too.

Well, guess what, the neighborhood is well established, people
bought long time ago and they have accumulated enough equities
in their homes to stay put or perhaps move up.
(One neighbor moved to the wine country, they built their own home
plus inlaw's home on 5 acres lot, it is approx. $1.6 mil now).
In this neighborhood, most of the home owners probbly have steady
jobs and older kids perhaps with part time jobs.

In the meantime I have a listing in a new neighborhood, it was built
by Lennar in 2005. The homes are all beautiful and all upscale with
granite tops, travertine tiles or wood floor, mostly 5 or 6 bedrooms
with 4 to 4.5 baths. Some homes are truly gorgeous with upgrade in
the front yards as well as backyard.

Guess what, people bought in 2005 with Adjustable Rate Mortgage,
low down payment, low interest rate. Now it's 2008 many mortgage
interests for these home owners became much, much higher. For
example some payment increases anywhere from $500 to $1500 more
per month. No wonder, there are at least 30 homes for sale in this
area. People got into a bad loan and now they are either stuck or
needs to get out. I hate to tell you how much some of these
gorgeous homes are sold for. One of the problem is that since your
home is worth what the market will bear and the appraisers also look
at the neighborhood to see how much homes are sold for in the last 3-
6 months and it does not matter how much you bought it for.

It is not a pretty picture and believe me, the realtors who listed
these homes will spend tons of money for advertising and expenses
out of their own pockets TO HELP the SELLERS!! Some bank owned or
short sale properties are taking long time to sell and must be
priced competitively otherwise forget it. The buyers / investers are
looking for the cheapest house in the neighborhood. That is driving
the price down as well. Forget the existing lenders, they are
horrendously slow in the approval process when working with them.
For shortsale home, if we are lucky and have a buyer, the lender
might just approve 1% commission to the Realtors. What a joke.

I was on the phone for 4 hours one morning trying to talk to them
about processing the home for sale, they transferred me all over the
company. I had to put the phone on the speaker so I can do something
while I waited for someone to answer. Besides all the paperworks
they asked you to fill. All these work just to help the sellers.

In this market, all we can do is to work harder to help the sellers
sell their homes, without even thinking about how much we are going
to make. Some agent will not touch the shortsale, they think that it
just wasting their time.
Jeri

Here are the states with the highest and lowest percentage of ARMs.

2008-01-18T11:12:00.000-08:00

Here are the states with the highest
and lowest percentage of ARMs.

10 States with the Highest Percentage of ARMs

Nevada: 40.3 percent
California: 38.2 percent
District of Columbia: 33.2 percent
Arizona: 32.1 percent
Florida: 29.5 percent
Colorado: 27.2 percent
Washington: 24.5 percent
Virginia: 23.6 percent
Hawaii: 23.3 percent
Illinois: 23.1 percent

10 States with the Lowest Percentage of ARMs

Oklahoma: 9.6 percent
South Dakota: 10.2 percent
Arkansas: 10.4 percent
North Dakota: 10.7 percent
Nebraska: 11 percent
Iowa: 11.6 percent
Louisiana: 11.8 percent
Wyoming: 12.1 percent
Texas: 12.4 percent
West Virginia: 12.5 percent

Source: BusinessWeek, Prashant Gopal (01/11/08)

Toronto's Smallest House Is Up For Sale.

2008-01-15T13:13:00.000-08:00

Toronto's Smallest House is Up for Sale!

If....
a.. You live alone or with one other person (or an extremely small dog!!!)
b.. You don't have much stuff (barely more than a homeless person!!)
c.. You miss that cute little apartment you lived in while teaching English in Japan, then this is the place for you!

This house, located near the intersection of Dufferin Street and Rogers
Road is believed to be Toronto's smallest house. Occupying what used to be
a driveway, it's a one-bedroom, one-bathroom house that sits on a parcel of
land 7.25 feet (2.2 metres) wide and 113.67 feet (34.6 metres) long and has
an interior area of just under 300 square feet (under 28 square metres).
The asking price is $179,900.!!!!

Here's another look at the front:

Here's the living room, looking towards the front of the house:

Here's the living room again, looking towards the back of the house.

Here's the kitchen looking towards the back of the house.

Note that despite the small space, they've managed to fit a washer and dryer into the place:

Here's the bedroom, looking towards the back of the house.

It comes with a Murphy bed, which is a necessity in such a space.

This is what it looks like with the Murphy bed down:

...and here's the bedroom (looking towards the front of the house) with the Murphy bed retracted:

You also get some patio space out back. Here it is, looking towards the front of the house.

...and here it is looking towards the back:

Here are the house's listed features:

a.. "Completely Re-Done Top-To-Bottom, Front-To-Back!"
b.. Tumbled stone entrance walk
c.. Renovated Bath
d.. Renovated kitchen with newer stove, new cabinets and new stacked washer/dryer
e.. Bedroom with Murphy bed + "Built-Ins" - doubles as den!
f.. Walk-out to fenced patio
g.. 100-amp service
h.. 2 satellite dishes and receiver
i.. "Window A/C Available"

See photos on this BLOG:
http://www.joeydevilla.com/2007/10/21/torontos-smallest-house-is-up-for-sale/