RISMEDIA, April 29, 2009-With distressed sales accounting for half of all home sales, many home sellers are finding that traditional sales are competing with discounted prices offered by foreclosed properties and short sales in their local area. To help home sellers attract buyers and compete against the discounted prices offered by distressed properties, ForSaleByOwner.com offers the following tips and advice:
Price the Home Correctly: Home sellers need to price their home according to today’s market and not based on the high price that a neighbor might have received a few years ago. Using a combination of an online appraisal and a licensed home appraiser will help today’s seller price the home accurately based on recent sales activity.
Market the Home More Effectively: Traditional home sellers have access to more marketing channels than distressed properties, since not all distressed properties are found on the Multiple Listing Service (MLS), or by popular websites like Realtor.com. Traditional home sellers, including for sale by owner sellers, can market their properties with these resources to reach a larger audience of buyers than financially distressed homes.
Keep the Home in Top Condition: Foreclosed homes are typically in disrepair and are in need of some repair or renovation after having been left vacant. It can easily cost a new owner tens of thousands of dollars and months of work to get the home back in shape. A home seller should stage their home to give it the appearance of being in “move-in” condition. The house, as well as all closets, should be kept clean and free of clutter to create the appearance of a more spacious home. Sellers can make their home stand out by doing things like landscaping the front yard to improve curb appeal, replacing worn-out carpets and old appliances, applying new paint in key interior rooms, and tackling other minor home improvement projects.
Offer a Quick Closing: An advantage of being a conventional home seller is being able to offer a quick closing, often an advantage for buyers who wish to move quickly. Distressed properties can take many months to reach a closing date. Sellers should be prepared to offer a 30-day closing date to attract buyers who want to move quickly.
Qualify Interested Buyers: Nothing is more discouraging than spending weeks with a prospective buyer, only to learn that he or she is unable to obtain a mortgage. To avoid such situations, make sure that your buyer is pre-approved for the loan amount necessary to finance the purchase of your home.
Saturday, May 30, 2009
Thursday, May 28, 2009
Will Downpayment Assistance Help the U.S. Housing Market?
Print Article
RISMEDIA, May 28, 2009-With home prices falling nearly 20% in the first quarter of 2009, Ann Ashburn, president of AmeriDream outlined four reasons why the U.S. economy and the next generation of homeowners would benefit from downpayment assistance funded in part by sellers (DPA). Congress is currently considering H.R. 600, bipartisan legislation that would make DPA an allowable gift source for creditworthy borrowers of Federal Housing Administration loans.
“AmeriDream continues to provide full support to H.R. 600, which will stabilize home values, protect taxpayers, encourage responsible homeownership, and create jobs,” said Ashburn. “These are four compelling reasons to make DPA an important part of our national economic recovery strategy.”
1. Stabilize home values. DPA can help stop the downward spiral in home values across the country by encouraging qualified homebuyers with FHA loans to enter the housing market. An estimated 300,000 homebuyers are eliminated from the housing market every year without DPA programs in place.
2. Protect taxpayers. H.R. 600 allows private partnerships between sellers and non-profits to provide downpayment gifts to qualified homebuyers at no cost to the taxpayer. That makes H.R. 600 a fiscally responsible alternative to government-subsidized downpayment assistance programs being considered by the U.S. Department of Housing & Urban Development.
3. Encourage responsible homeownership. H.R. 600 will enable 300,000 additional families and individuals- all qualified and approved for FHA loans- to become homeowners each year. The bill also requires that DPA recipients be offered homebuyer education courses to help them understand the financial responsibilities of homeownership. Lastly, H.R. 600 implements tougher credit requirements for DPA recipients, strict FHA underwriting guidelines, and stiff penalties for improper home appraisals.
4. Create jobs. DPA will create 235,000 jobs, generate over $4 billion annually in local and state revenues, and provide $2 billion annually in private capital for sustainable homeownership. DPA’s absence prompts fewer home sales, lower home values, more foreclosures, job losses, and lower revenues for cash-strapped local governments. H.R. 600 is a vital mechanism to stabilizing the U.S. housing market.
For more information, visit www.ameridream.org.
RISMEDIA, May 28, 2009-With home prices falling nearly 20% in the first quarter of 2009, Ann Ashburn, president of AmeriDream outlined four reasons why the U.S. economy and the next generation of homeowners would benefit from downpayment assistance funded in part by sellers (DPA). Congress is currently considering H.R. 600, bipartisan legislation that would make DPA an allowable gift source for creditworthy borrowers of Federal Housing Administration loans.
“AmeriDream continues to provide full support to H.R. 600, which will stabilize home values, protect taxpayers, encourage responsible homeownership, and create jobs,” said Ashburn. “These are four compelling reasons to make DPA an important part of our national economic recovery strategy.”
1. Stabilize home values. DPA can help stop the downward spiral in home values across the country by encouraging qualified homebuyers with FHA loans to enter the housing market. An estimated 300,000 homebuyers are eliminated from the housing market every year without DPA programs in place.
2. Protect taxpayers. H.R. 600 allows private partnerships between sellers and non-profits to provide downpayment gifts to qualified homebuyers at no cost to the taxpayer. That makes H.R. 600 a fiscally responsible alternative to government-subsidized downpayment assistance programs being considered by the U.S. Department of Housing & Urban Development.
3. Encourage responsible homeownership. H.R. 600 will enable 300,000 additional families and individuals- all qualified and approved for FHA loans- to become homeowners each year. The bill also requires that DPA recipients be offered homebuyer education courses to help them understand the financial responsibilities of homeownership. Lastly, H.R. 600 implements tougher credit requirements for DPA recipients, strict FHA underwriting guidelines, and stiff penalties for improper home appraisals.
4. Create jobs. DPA will create 235,000 jobs, generate over $4 billion annually in local and state revenues, and provide $2 billion annually in private capital for sustainable homeownership. DPA’s absence prompts fewer home sales, lower home values, more foreclosures, job losses, and lower revenues for cash-strapped local governments. H.R. 600 is a vital mechanism to stabilizing the U.S. housing market.
For more information, visit www.ameridream.org.
Monday, May 25, 2009
Rethinking Remodeling: Homeowners Want More Bang for Their Home-Improvement Buck
By Amy Hoak Print Article
RISMEDIA, May 25, 2009-(MCT)-Fewer homeowners may be starting complete kitchen remodels, but they’re still replacing countertops and re-facing cabinets. They’re also investing in improvements to make their homes more energy-efficient, according to a recent home remodeling and repair report by ServiceMagic.com. Others are splurging on hot tubs and home theaters after realizing that they may be in their homes for some years to come-and want to make them as comfortable as possible.
“People are not going bigger and better, but improving what they have more cost effectively,” said Craig Smith, CEO of ServiceMagic, a website that connects homeowners to prescreened contractors. For instance, instead of buying new furniture, they’re repairing what they have. Or they’re deep cleaning the carpet in lieu of replacing it.
All for good reason: Money is tight, lending standards strict and in a sluggish housing market you might not recoup as much of your remodeling investment at resale.
Home improvement spending is expected to decline 12% in 2009, according to Harvard University’s Joint Center for Housing Studies. Lower financing costs may be starting to stabilize the downturn in existing home sales, but “they have not been enough to offset rising unemployment and falling consumer confidence and encourage homeowners to undertake major home improvement projects,” said Kermit Baker, director of the Remodeling Futures Program at the Joint Center.
It’s much different than the days when home-equity lending was plentiful. Before doing anything, homeowners are carefully considering how they should spend their money.
In the days of easy credit, “there was a feeling of ‘we can’t go wrong, let’s just get started,’” said Bill Judson, an architect with HartmanBaldwin Design/Build, based in Claremont, Calif. “Now, it’s harder to get money, in terms of credit, and homeowners are taking it a little slower and educating themselves a little more.”
Meanwhile, those who do upgrade may be in for a bargain: Costs of materials, including lumber and copper, have dropped somewhat, Judson said. The biggest price cut has been related to lower labor costs as surviving contractors struggle to compete, he added.
The kitchen and bathroom are traditionally rooms where remodeling pays off. Some homeowners are still going through with full remodels these days, said Kimberly Sweet, editor of Kitchens.com. But they aren’t the norm. “A lot of people are making do with what they have, or maybe choosing to spruce up a few things and not do a full remodel,” Sweet said.
Nationally, the volume of countertop project requests rose 39% in the first quarter of 2009, compared with the first quarter of 2008, while major kitchen remodels are down 19%, according to ServiceMagic’s most recent Home Remodeling and Repair Index/Survey. The data comes from the company’s service requests; the site received 4.2 million requests from homeowners in 2008. Service requests for bathroom remodels were down 10% in the first quarter of this year, according to the report.
At the recent Kitchen/Bath Industry Show, affordable remodeling products included liquid stainless steel to refinish appliances and do-it-yourself backsplashes, Sweet said. Re-facing or painting cabinets and updating cabinet hardware have always been an option to remodel on a budget. For replacements, there are improved cabinet options in thermofoil, she said. Consumers still gravitate toward granite countertops, but other less expensive-yet still attractive-countertop materials are available, Sweet added. For those considering resale values, it might be best to go for minor fix-ups. “Doing all the high end may not get you the return you were looking for before,” Sweet continued. “You don’t want to be the most expensive house on the block in this market.”
According to Remodeling Magazine’s 2008-2009 Cost vs. Value report, replacement projects that improve curb appeal-including siding, windows and decks-are some of your best bets for recouping money at resale.
Upgrading windows can make a home more energy-efficient. ServiceMagic has seen more interest in projects including insulation and solar-panel installation, which cut energy bills and are likely eligible for government tax credits, according to the company’s report.
And some homeowners are investing in home energy audits, for a comprehensive view of what can be done to increase efficiency, said Smith. The cost: Between $300 and $500. “But people will pay that because the insight provided can save them a lot of money down the road.” An audit can help homeowners prioritize projects.
Most home improvement projects may be practical these days, but some splurges are also becoming popular as market conditions force people to stay in a home longer than previously planned and as the economy has them spending more time entertaining at home. As a result, some homeowners are buying hot tubs, spas and saunas, as well as TVs and other home theater components, Smith said.
Compared to large-scale remodeling projects, “hot tubs are not a massive out-of-pocket expense,” Smith said. And “with the prices of flat-screen TVs coming down and the whole ’staycation’ phenomenon,” updated media rooms also have appeal, he added.
Read more: "Rethinking Remodeling: Homeowners Want More Bang for Their Home-Improvement Buck | RISMedia" - http://rismedia.com/2009-05-24/rethinking-remodeling-homeowners-want-more-bang-for-their-home-improvement-buck/#ixzz0GZqnd4O0&A
RISMEDIA, May 25, 2009-(MCT)-Fewer homeowners may be starting complete kitchen remodels, but they’re still replacing countertops and re-facing cabinets. They’re also investing in improvements to make their homes more energy-efficient, according to a recent home remodeling and repair report by ServiceMagic.com. Others are splurging on hot tubs and home theaters after realizing that they may be in their homes for some years to come-and want to make them as comfortable as possible.
“People are not going bigger and better, but improving what they have more cost effectively,” said Craig Smith, CEO of ServiceMagic, a website that connects homeowners to prescreened contractors. For instance, instead of buying new furniture, they’re repairing what they have. Or they’re deep cleaning the carpet in lieu of replacing it.
All for good reason: Money is tight, lending standards strict and in a sluggish housing market you might not recoup as much of your remodeling investment at resale.
Home improvement spending is expected to decline 12% in 2009, according to Harvard University’s Joint Center for Housing Studies. Lower financing costs may be starting to stabilize the downturn in existing home sales, but “they have not been enough to offset rising unemployment and falling consumer confidence and encourage homeowners to undertake major home improvement projects,” said Kermit Baker, director of the Remodeling Futures Program at the Joint Center.
It’s much different than the days when home-equity lending was plentiful. Before doing anything, homeowners are carefully considering how they should spend their money.
In the days of easy credit, “there was a feeling of ‘we can’t go wrong, let’s just get started,’” said Bill Judson, an architect with HartmanBaldwin Design/Build, based in Claremont, Calif. “Now, it’s harder to get money, in terms of credit, and homeowners are taking it a little slower and educating themselves a little more.”
Meanwhile, those who do upgrade may be in for a bargain: Costs of materials, including lumber and copper, have dropped somewhat, Judson said. The biggest price cut has been related to lower labor costs as surviving contractors struggle to compete, he added.
The kitchen and bathroom are traditionally rooms where remodeling pays off. Some homeowners are still going through with full remodels these days, said Kimberly Sweet, editor of Kitchens.com. But they aren’t the norm. “A lot of people are making do with what they have, or maybe choosing to spruce up a few things and not do a full remodel,” Sweet said.
Nationally, the volume of countertop project requests rose 39% in the first quarter of 2009, compared with the first quarter of 2008, while major kitchen remodels are down 19%, according to ServiceMagic’s most recent Home Remodeling and Repair Index/Survey. The data comes from the company’s service requests; the site received 4.2 million requests from homeowners in 2008. Service requests for bathroom remodels were down 10% in the first quarter of this year, according to the report.
At the recent Kitchen/Bath Industry Show, affordable remodeling products included liquid stainless steel to refinish appliances and do-it-yourself backsplashes, Sweet said. Re-facing or painting cabinets and updating cabinet hardware have always been an option to remodel on a budget. For replacements, there are improved cabinet options in thermofoil, she said. Consumers still gravitate toward granite countertops, but other less expensive-yet still attractive-countertop materials are available, Sweet added. For those considering resale values, it might be best to go for minor fix-ups. “Doing all the high end may not get you the return you were looking for before,” Sweet continued. “You don’t want to be the most expensive house on the block in this market.”
According to Remodeling Magazine’s 2008-2009 Cost vs. Value report, replacement projects that improve curb appeal-including siding, windows and decks-are some of your best bets for recouping money at resale.
Upgrading windows can make a home more energy-efficient. ServiceMagic has seen more interest in projects including insulation and solar-panel installation, which cut energy bills and are likely eligible for government tax credits, according to the company’s report.
And some homeowners are investing in home energy audits, for a comprehensive view of what can be done to increase efficiency, said Smith. The cost: Between $300 and $500. “But people will pay that because the insight provided can save them a lot of money down the road.” An audit can help homeowners prioritize projects.
Most home improvement projects may be practical these days, but some splurges are also becoming popular as market conditions force people to stay in a home longer than previously planned and as the economy has them spending more time entertaining at home. As a result, some homeowners are buying hot tubs, spas and saunas, as well as TVs and other home theater components, Smith said.
Compared to large-scale remodeling projects, “hot tubs are not a massive out-of-pocket expense,” Smith said. And “with the prices of flat-screen TVs coming down and the whole ’staycation’ phenomenon,” updated media rooms also have appeal, he added.
Read more: "Rethinking Remodeling: Homeowners Want More Bang for Their Home-Improvement Buck | RISMedia" - http://rismedia.com/2009-05-24/rethinking-remodeling-homeowners-want-more-bang-for-their-home-improvement-buck/#ixzz0GZqnd4O0&A
Sunday, May 24, 2009
Mortgage Rates Continue to Fall
Freddie Mac reports a drop in the 30-year fixed mortgage rate to 4.82 percent during the week ended May 21 from 4.86 percent the prior week. Meanwhile, the 15-year fixed mortgage rate dipped to 4.5 percent.
The Federal Reserve is working to hold down rates by purchasing upwards of $1.25 trillion in mortgage-backed securities and $300 billion in Treasuries. Mortgage rate premiums have declined substantially over the last couple of months even as Treasury yields climbed.
Source: Investor's Business Daily (05/22/09)
The Federal Reserve is working to hold down rates by purchasing upwards of $1.25 trillion in mortgage-backed securities and $300 billion in Treasuries. Mortgage rate premiums have declined substantially over the last couple of months even as Treasury yields climbed.
Source: Investor's Business Daily (05/22/09)
Friday, May 22, 2009
Buyer Interest in Foreclosures Spikes, Says Survey
By Maria Patterson Print Article
Harris survey shows 55% of U.S. adults would consider buying foreclosed home
RISMEDIA, May 21, 2009-According to the results of a new survey from Harris Interactive, there is a notable gain in consumers’ willingness to buy foreclosed properties, with 55% of U.S. adults indicating that they are at least somewhat likely to consider purchasing a foreclosed home in the future, compared to the 47% of U.S. adults who indicated the same in November 2008. The tracking survey was conducted on behalf of national real estate search engine, Trulia.com, and RealtyTrac, an online marketplace for foreclosure properties.
“Foreclosures are at the heart of the housing crisis and monitoring consumer attitudes toward foreclosures is extremely relevant,” explained Pete Flint, co-founder and CEO of Trulia. “A lot of foreclosure inventory is being taken off the market. The results of this survey show that this is clearly good news for the economy.”
Flint ads that about one quarter of all homes on the market, have witnessed a price cut at least once.
According to the survey, in the current market, U.S. adults believe foreclosed homes are an even greater bargain opportunity than before, with 40% expecting to pay at least 50% less for a foreclosed home, compared to only 31% of U.S. adults surveyed in November 2008 who expected that type of discount. This could explain why site traffic is peaking at RealtyTrac.
“In some cases, people are overestimating what they might expect in the form of a discount on a foreclosure property,” said Rick Sharga, senior vice president of RealtyTrac. “There is a discount percentage of about 31% nationally, but these are national numbers that will vary dramatically from market to market.” In San Bernadino, California, for example, some assets are currently selling at 20% of their original sales price, explained Sharga, who added that well over half of what’s moving on today’s market is some sort of distressed asset.
Survey results also revealed that first-time homebuyers represent the group most interested in purchasing foreclosure property. Two-thirds of U.S. adults between the ages 18-44 (66%)-comprised largely of first-time homebuyers-would consider purchasing a foreclosed home, compared to a little more than one third of those ages 55 and older (38%). Respondents aged 45-54 fell in between, with 53% indicating that they would be at least somewhat likely to consider a foreclosed property.
“First-time homebuyers are a big part of the (foreclosure) market,” said Sharga. “Probably between 50 and 60 percent of foreclosure sales are going to first-time homebuyers; another 30 percent is probably going to investors who are reselling them at another discount or hanging onto them as rental properties. Most of the financing for foreclosures is cash from investors and FHA loans for first-time homebuyers.”
Although survey results indicate that 85% of U.S. adults are concerned with the negative aspects of buying a foreclosure, with 71% citing hidden costs as their top concern, most people are “still underestimating the price it will take to repair the home,” says Sharga.
The May 2009 survey also found that 74% of U.S. adults familiar with President Barack Obama’s Mortgage Relief Program are at least somewhat confident it will give homeowners the incentive to renegotiate with mortgage lenders in order to prevent their homes from going into foreclosure.
“The government is trying to take action,” says Sharga. “The Obama plan might not be perfect, but it’s the most comprehensive plan to date.” Sharga adds that the administration’s recently introduced plans to streamline the short sale process and encourage deeds-in-lieu are also signs that the government is “looking at more creative ways to address the problem.”
While Flint and Sharga agree that there is a long road ahead toward full recovery in the housing market, the survey’s results are promising.
“Across the US, 24 percent of existing homes for sale on the market have seen at least one price reduction in order to stay competitive, creating a tremendous opportunity for consumers to buy homes at significantly lower prices,” said Flint. “Consumers are bargain hunting; they’re aware of the changes in affordability. The bad news is, we don’t quite see the bottom yet; the good news is, things are getting less worse.”
Other survey results include:
• Current renters (68%) are more likely to consider purchasing foreclosed homes than current homeowners (49%).
• U.S. adults with children under 18 living in their household also show an increased likelihood to consider foreclosure properties, with 66% indicating they would be at least somewhat likely to purchase one, compared to 49% of those without children under 18 in the household.
• U.S. adults aged 18-34 familiar with the program have the highest confidence level in the Mortgage Relief Program; 84% are least somewhat confident in the plan, compared to 71% of those aged 35-44, 69% of those aged 45-54, and 71% of those aged 55+.
• Women familiar with the program are more likely to be at least somewhat confident in its ability to give homeowners the incentive to renegotiate with their mortgage lender in order to prevent their home from going into foreclosure than men familiar with the program (79% vs. 69%, respectively).
*This May 2009 survey was conducted online within the United States by Harris Interactive via its QuickQuery(SM) online omnibus service on behalf of Trulia between May 1-5, 2009 among 2,397 U.S. adults aged 18 years and older. Results were weighted to be representative of the total U.S. adult population on the basis of region, age within gender, education, household income, race/ethnicity, and propensity to be online.
Harris survey shows 55% of U.S. adults would consider buying foreclosed home
RISMEDIA, May 21, 2009-According to the results of a new survey from Harris Interactive, there is a notable gain in consumers’ willingness to buy foreclosed properties, with 55% of U.S. adults indicating that they are at least somewhat likely to consider purchasing a foreclosed home in the future, compared to the 47% of U.S. adults who indicated the same in November 2008. The tracking survey was conducted on behalf of national real estate search engine, Trulia.com, and RealtyTrac, an online marketplace for foreclosure properties.
“Foreclosures are at the heart of the housing crisis and monitoring consumer attitudes toward foreclosures is extremely relevant,” explained Pete Flint, co-founder and CEO of Trulia. “A lot of foreclosure inventory is being taken off the market. The results of this survey show that this is clearly good news for the economy.”
Flint ads that about one quarter of all homes on the market, have witnessed a price cut at least once.
According to the survey, in the current market, U.S. adults believe foreclosed homes are an even greater bargain opportunity than before, with 40% expecting to pay at least 50% less for a foreclosed home, compared to only 31% of U.S. adults surveyed in November 2008 who expected that type of discount. This could explain why site traffic is peaking at RealtyTrac.
“In some cases, people are overestimating what they might expect in the form of a discount on a foreclosure property,” said Rick Sharga, senior vice president of RealtyTrac. “There is a discount percentage of about 31% nationally, but these are national numbers that will vary dramatically from market to market.” In San Bernadino, California, for example, some assets are currently selling at 20% of their original sales price, explained Sharga, who added that well over half of what’s moving on today’s market is some sort of distressed asset.
Survey results also revealed that first-time homebuyers represent the group most interested in purchasing foreclosure property. Two-thirds of U.S. adults between the ages 18-44 (66%)-comprised largely of first-time homebuyers-would consider purchasing a foreclosed home, compared to a little more than one third of those ages 55 and older (38%). Respondents aged 45-54 fell in between, with 53% indicating that they would be at least somewhat likely to consider a foreclosed property.
“First-time homebuyers are a big part of the (foreclosure) market,” said Sharga. “Probably between 50 and 60 percent of foreclosure sales are going to first-time homebuyers; another 30 percent is probably going to investors who are reselling them at another discount or hanging onto them as rental properties. Most of the financing for foreclosures is cash from investors and FHA loans for first-time homebuyers.”
Although survey results indicate that 85% of U.S. adults are concerned with the negative aspects of buying a foreclosure, with 71% citing hidden costs as their top concern, most people are “still underestimating the price it will take to repair the home,” says Sharga.
The May 2009 survey also found that 74% of U.S. adults familiar with President Barack Obama’s Mortgage Relief Program are at least somewhat confident it will give homeowners the incentive to renegotiate with mortgage lenders in order to prevent their homes from going into foreclosure.
“The government is trying to take action,” says Sharga. “The Obama plan might not be perfect, but it’s the most comprehensive plan to date.” Sharga adds that the administration’s recently introduced plans to streamline the short sale process and encourage deeds-in-lieu are also signs that the government is “looking at more creative ways to address the problem.”
While Flint and Sharga agree that there is a long road ahead toward full recovery in the housing market, the survey’s results are promising.
“Across the US, 24 percent of existing homes for sale on the market have seen at least one price reduction in order to stay competitive, creating a tremendous opportunity for consumers to buy homes at significantly lower prices,” said Flint. “Consumers are bargain hunting; they’re aware of the changes in affordability. The bad news is, we don’t quite see the bottom yet; the good news is, things are getting less worse.”
Other survey results include:
• Current renters (68%) are more likely to consider purchasing foreclosed homes than current homeowners (49%).
• U.S. adults with children under 18 living in their household also show an increased likelihood to consider foreclosure properties, with 66% indicating they would be at least somewhat likely to purchase one, compared to 49% of those without children under 18 in the household.
• U.S. adults aged 18-34 familiar with the program have the highest confidence level in the Mortgage Relief Program; 84% are least somewhat confident in the plan, compared to 71% of those aged 35-44, 69% of those aged 45-54, and 71% of those aged 55+.
• Women familiar with the program are more likely to be at least somewhat confident in its ability to give homeowners the incentive to renegotiate with their mortgage lender in order to prevent their home from going into foreclosure than men familiar with the program (79% vs. 69%, respectively).
*This May 2009 survey was conducted online within the United States by Harris Interactive via its QuickQuery(SM) online omnibus service on behalf of Trulia between May 1-5, 2009 among 2,397 U.S. adults aged 18 years and older. Results were weighted to be representative of the total U.S. adult population on the basis of region, age within gender, education, household income, race/ethnicity, and propensity to be online.
Wednesday, May 20, 2009
Housing Affordability Surges to Highest Level in 18 Years
RISMEDIA, May 20, 2009-Nationwide housing affordability jumped 10 percentage points during the first quarter of 2009 to its highest level since the series began 18 years ago, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI). The HOI showed that 72.5% of all new and existing homes sold in the first quarter of 2009 were affordable to families earning the national median income of $64,000, up from 62.4% during the previous quarter and up from 53.8% during the first quarter of 2008.
“Underlying the increase in affordability are lower home prices and record low interest rates. Combined with the $8,000 federal tax credit for first-time home buyers, consumers are beginning to return to the marketplace,” said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla.
Indianapolis was the most affordable major housing market in the country during the first quarter. Almost 95% of all homes sold were affordable to households earning the area’s median family income of $68,100. Indianapolis has now topped the affordability list 15 consecutive quarters.
Also near the top of the list of the most affordable major metro housing markets were Youngstown-Warren-Boardman, Ohio-Pa.; Akron, Ohio; Grand Rapids-Wyoming, Mich.; and Syracuse, N.Y.
Several smaller housing markets posted even higher affordability scores than Indianapolis, with Sandusky, Ohio outscoring all others. There, almost 98% of homes sold during the first quarter of 2009 were affordable to median-income earners. Other small housing markets ahead of Indianapolis on the affordability scale included Monroe in Michigan and Mansfield, Springfield and Canton-Massillon in Ohio.
New York-White Plains-Wayne, N.Y.-N.J., where just over 21% of all homes sold during the period were affordable to those earning the median income of $64,800, was once again the nation’s least affordable major housing market in the first quarter. Though affordability jumped 7 percentage points for the quarter, this was the New York metro area’s fourth consecutive appearance at the bottom of the list. Other major metros near the bottom of the chart included San Francisco; Los Angeles-Long Beach-Glendale, Calif.; Nassau-Suffolk, N.Y.; and Honolulu.
Among smaller metro areas, Ocean City, N.J. was the least affordable market, along with San Luis Obispo-Paso Robles, Calif.; Flagstaff, Ariz.; Hanford-Corcoran, Calif.; and Santa Cruz-Watsonville, Calif., respectively.
For more information, visit www.nahb.org.
“Underlying the increase in affordability are lower home prices and record low interest rates. Combined with the $8,000 federal tax credit for first-time home buyers, consumers are beginning to return to the marketplace,” said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla.
Indianapolis was the most affordable major housing market in the country during the first quarter. Almost 95% of all homes sold were affordable to households earning the area’s median family income of $68,100. Indianapolis has now topped the affordability list 15 consecutive quarters.
Also near the top of the list of the most affordable major metro housing markets were Youngstown-Warren-Boardman, Ohio-Pa.; Akron, Ohio; Grand Rapids-Wyoming, Mich.; and Syracuse, N.Y.
Several smaller housing markets posted even higher affordability scores than Indianapolis, with Sandusky, Ohio outscoring all others. There, almost 98% of homes sold during the first quarter of 2009 were affordable to median-income earners. Other small housing markets ahead of Indianapolis on the affordability scale included Monroe in Michigan and Mansfield, Springfield and Canton-Massillon in Ohio.
New York-White Plains-Wayne, N.Y.-N.J., where just over 21% of all homes sold during the period were affordable to those earning the median income of $64,800, was once again the nation’s least affordable major housing market in the first quarter. Though affordability jumped 7 percentage points for the quarter, this was the New York metro area’s fourth consecutive appearance at the bottom of the list. Other major metros near the bottom of the chart included San Francisco; Los Angeles-Long Beach-Glendale, Calif.; Nassau-Suffolk, N.Y.; and Honolulu.
Among smaller metro areas, Ocean City, N.J. was the least affordable market, along with San Luis Obispo-Paso Robles, Calif.; Flagstaff, Ariz.; Hanford-Corcoran, Calif.; and Santa Cruz-Watsonville, Calif., respectively.
For more information, visit www.nahb.org.
Monday, May 18, 2009
Housing Affordability and Low Interest Rates Entice Buyers to Return to the Market
RISMEDIA, May 18, 2009-Historically high housing affordability and low mortgage interest rates, combined with buyer opportunities in the distressed sales market, have increased home sales in many areas of the country. “There has never been a better time to buy,” said National Association of Realtors Chief Economist Lawrence Yun, who presented NAR’s economic outlook at the Economic Issues and Residential Real Estate Business Trends Forum that took place during the Realtors Midyear Legislative Meetings & Trade Expo that took place in Washington, D.C. last week. Yun commented on a convergence of favorable buying conditions while emphasizing how important it is for home buyers to stay within their budgets. “Housing affordability is at an all-time high, mortgage rates are historically low, and interest rates are the lowest they’ve been since the days of Eisenhower,” said Yun.
During a national real estate summit held in D.C. last week, Shaun Donovan, U.S. Secretary of the Department of Housing and Urban Development, announced that the Federal Housing Administration is going to permit its lenders to allow qualified home buyers to use the $8,000 tax credit as a downpayment. “Now that buyers will be able to use the $8,000 tax credit as a downpayment, we should see additional buyers enter the market,” said Yun.
While he doesn’t anticipate an immediate pickup in the coming months, Yun believes early summer will be a critical indicator of how home buyers are responding to the $8,000 tax credit. “The home buying process takes time,” said Yun. “This summer will gauge the success of the first-time home buyer tax credit.”
Evidence of recovery is already demonstrated in California, where home sales are rising much faster than anticipated; some areas in the state are seeing a 70% to 80% increase in sales. Yun attributes this surge to buyers who may have been sitting on the fence but are now taking advantage of the great opportunities for fear of being left out of current deals in the market.
According to Yun, many first-time buyers are attracted to deeply discounted and distressed home prices. Nationally, about half of all recent transactions have been distressed sales. Fifteen to 20% have been short sales and 30% to 35% have been foreclosures. Yun says while these statistics are unfortunate, the situation, along with current home buying incentives, has created an impressive window of opportunity for potential home buyers.
“The stimulus and falling inventory levels will help stabilize prices,” said Yun. “My projection is home sales will be 10 to 20 percent higher the second half of this year than last year and we will come out of this recession in 2010.”
For more information, visit www.realtor.org.
During a national real estate summit held in D.C. last week, Shaun Donovan, U.S. Secretary of the Department of Housing and Urban Development, announced that the Federal Housing Administration is going to permit its lenders to allow qualified home buyers to use the $8,000 tax credit as a downpayment. “Now that buyers will be able to use the $8,000 tax credit as a downpayment, we should see additional buyers enter the market,” said Yun.
While he doesn’t anticipate an immediate pickup in the coming months, Yun believes early summer will be a critical indicator of how home buyers are responding to the $8,000 tax credit. “The home buying process takes time,” said Yun. “This summer will gauge the success of the first-time home buyer tax credit.”
Evidence of recovery is already demonstrated in California, where home sales are rising much faster than anticipated; some areas in the state are seeing a 70% to 80% increase in sales. Yun attributes this surge to buyers who may have been sitting on the fence but are now taking advantage of the great opportunities for fear of being left out of current deals in the market.
According to Yun, many first-time buyers are attracted to deeply discounted and distressed home prices. Nationally, about half of all recent transactions have been distressed sales. Fifteen to 20% have been short sales and 30% to 35% have been foreclosures. Yun says while these statistics are unfortunate, the situation, along with current home buying incentives, has created an impressive window of opportunity for potential home buyers.
“The stimulus and falling inventory levels will help stabilize prices,” said Yun. “My projection is home sales will be 10 to 20 percent higher the second half of this year than last year and we will come out of this recession in 2010.”
For more information, visit www.realtor.org.
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