Real Estate Information

While home prices are expected to continue to fall in most metro areas, Clear Capital’s Home Data Index report says a few cities are already on the rebound and showing some gains in home values.

“There really is this segmentation of these markets occurring where the one-size-fits-all national level numbers to represent all numbers really isn’t valid anymore,” Alex Villacorta, senior statistician at Clear Capital, told MSNBC. “Overall we’re seeing prices start to stabilize going into 2011, but unfortunately some of those markets will stabilize in the downward direction where others will see a sustained recovery.”

Clear Capital takes into account unemployment rates, foreclosure rates, and real estate inventory in its index.

The following is a list of 10 cities that Clear Capital expects will rise in property value in 2011:

1. Washington, D.C.: 6.5 percent price increase
2. Houston: 3.6 percent price increase
3. Honolulu: 3.4 percent price increase
4. Memphis, Tenn.: 3.2 percent price increase
5. Columbus, Ohio: 2.1 percent price increase
6. Dallas: 1.4 percent price increase
7. New York: 1.3 percent price increase
8. Birmingham, Ala.: 0.9 percent price increase
9. Pittsburgh: 0.8 percent price increase
10. New Orleans: 0.5 percent price increase

Meanwhile, Clear Capital reports that real estate markets in Florida and the Western parts of the U.S.—such as cities in Arizona and “Breadbasket metros” like Oklahoma City, Okla., and Dayton, Ohio—likely will see the largest price drops in home values over the year. Virginia Beach, Va., is expected to have the highest drop in 2011, with a 12.8 percent price decrease, according to Clear Capital report.

Source: “Where Home Prices Will Rise, Fall the Most in 2011,” MSNBC (Jan. 26, 2011)

Anyone looking for a quiet retreat might find it in Unabomber Ted Kaczynski’s 1.4-acre retreat in western Montana, which is on the market for only $69,500, down from the original asking price of $154,500.

Kaczynski masterminded several bombings between 1978 and 1995. He opposed technology, so the property isn’t served by power, water, or sewer lines. Kaczynski’s cabin was removed by the FBI as evidence.

John Pistelak Realty in Lincoln, Mont., who has the listing, advertises it as “secluded," while urging, “Don’t miss this one!”

Source: Christian Science Monitor, Laura Forbes (12/5/2010)

Banks will appear before the Senate Banking Committee on Tuesday to explain sloppy mortgage paperwork, but observers aren’t expecting much Congressional harmony on the topic. Senators are likely to press lenders on the question of whether “robosigners” are evidence that modifying loans is better than eviction.

On the House side where lenders are expected to appear before the Financial Services Committee on Thursday, U.S. Rep. Spencer Bachus, an Alabama Republican and next year’s front-runner for chair of the panel, has criticized federal regulators instead of bankers. “It is disappointing that the regulators didn't catch this before the media,” he wrote in an e-mail.

Outsiders see only gridlock. "I have no hopes for this Congress whatsoever," said John Taylor, president of the National Community Reinvestment Coalition.

Source: Reuters News, Dave Clarke and Joe Rauch (11/15/2010)

The Federal Government is wrestling with what to do about Fannie Mae and Freddie Mac, (The two Government Sponsored Mortgage Companies) which have needed a combined $148 billion since the bail out two years ago.

There are many ways to restructure the system.  Here are the four that have the most support:

1. Fully Private System. Eliminate Fannie and Freddie and let private lenders take over.  The problem is that the market for mortgage backed securities issued without government backing is small - perhaps non-existent until the market stabilizes.

2. Semi-Private System. Disolve Fannie and Freddie and turn their function over to private companies that would pay for the right to issue government backed mortgage securities. Small banks object to this because it would inevitably increase the role of the "big four." (The four largest banks in the U.S.)

3. Hybrid System: Fannie and Freddie would compete against other companies that would also offer government backed securities.

4. Government Run System: Fannie and Freddie would become part of the government.  This is unpopular because it would expand the governments already large role and increase our federal debt.

Source: Associated Press, Alan Ziebel (8/9/2010)

With CEO Brian T. Moynihan citing a need to “clear the air,” Bank of America announced last week that it would halt foreclosures in every U.S. state to ensure accuracy in its documentation.

Bank of America, JPMorgan Chase & Co., and Ally Financial Inc. had previously frozen foreclosures in 23 states where courts have oversight of home seizures. The concern in those institutions was that employees hadn’t properly reviewed foreclosure information.

Bank of America’s decision to extend foreclosure freezes to all 50 states was roundly hailed by political leaders. Senate Majority Leader Harry Reid (D-Nev.) said other banks should follow the company’s example, and House Oversight and Government Reform Committee Chairman Edolphus Towns (D-N.Y.) said that Bank of America “did the right thing.”

However, Bank of America did take a hit in the market for the decision: The company’s stock price fell 1 percent on the New York Stock Exchange the day of the announcement.

Source: Bloomberg, Michael J. Moore, Lorraine Woellert, and Dakin Campbell (10/08/2010)

A top Treasury official will announce Wednesday that mortgage giants Fannie Mae and Freddie Mac won’t survive a revamp of the U.S. housing finance system in their current form.

"Private gains will no longer be subsidized by public losses, capital and underwriting standards will be appropriate, consumer protection will be strengthened and excessive risk-taking will be restrained," said Michael Barr, Treasury assistant secretary for financial institutions, in prepared testimony.

Barr is to deliver this news to the House Financial Service Subcommittee on Capital Markets on Wednesday.

Meanwhile, Edward J. DeMarco, acting director of the Federal Housing Finance Agency, who will speak at the same subcommittee hearing, expressed his reservations about the government’s strategy for revamping housing policy.

"Recently there has been a growing call for some form of explicit federal insurance to be a part of the housing finance system of the future," DeMarco said in a prepared statement. "The potential costs and risks associated with such a framework have not yet been fully explored."

Source: Reuters News, Corbett B. Daly (09/14/2010), and The Washington Post, Zachary A. Goldfarb (09/15/2010)

The latest government program to help underwater borrowers debuted Tuesday.

Under the plan, the Federal Housing Administration permits lenders to choose which borrowers will participate from among their clientele. The idea is that there are some borrowers banks and investors want to get rid of because they are likely to default anyway.

To qualify, borrowers must be current on their mortgages and owe at least 15 percent more than their home’s current value. Lenders must agree to forgive at least 10 percent of the debt.

The government estimates that between 500,000 and 1.5 million borrowers will be helped, but analysts at Barclays Capital say they doubt whether the program will reach 300,000 borrowers.

Source: Associated Press, Alan Zibel (09/07/2010)

'Why is Eden Prairie No. 1 this year? Not only is it family-friendly, it has a dynamite economy too.

At 5.1%, its unemployment rate is nearly one percentage point below the county rate and more than four points below the national average. It helps when you've got 50,000 jobs right in town.

Major employers include Fortune 500 trucking company C.H. Robinson, hearing-aid maker Starkey Labs, and the Minnesota Vikings, whose practice facility and front office are here. As for fiscal strength, Moody's gives the town a perfect AAA bond rating.

While it doesn't have much of a downtown, there's plenty of outer beauty: from gently rolling hills to 17 lakes that residents flock to year-round for swimming and ice skating. Town parks are laced with 125 miles of running, hiking, and biking trails.

No wonder residents rank among the healthiest people in the nation. Add in top-notch schools and safe streets and you've got a place that's tough to beat." -Ismat Mangla 

Source: Money Magazine

Tue Jun 29, 2010 3:52pm EDT

WASHINGTON June 29 (Reuters) - The U.S. House of Representatives on Tuesday approved giving extra time to homebuyers trying to get a popular federal tax credit by the end of the month.

The House backed a measure to extend the closing deadline to Sept. 30 for buyers who met the April 30 deadline to have a signed contract. The current deadline requires those buyers to close the transaction by June 30 to receive the $8,000 tax credit for first-time homebuyers.

Source: Reuters.com

Up to 180,000 home buyers will lose their tax credit through no fault of their own if Congress fails to pass an extension to the home buyer tax credit by June 30 when the closing deadline expires.

Included in that number are thousands of home buyers in every state of the union, from 390 in Wyoming to 17,700 in California, according to estimates by the National Association of REALTORS®.

“We are strongly urging the Senate and the House to act quickly to pass this legislation and ease the minds and pocketbooks of these home buyers,” said NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz.

“These are not buyers who just entered into the market. These are buyers who previously met all the qualifications for the tax credit, but find themselves at the mercy of a workflow jam with lenders or other delays such as lapses in the National Flood Insurance Program, Rural Housing Service, and new home construction, and might not be able to complete the purchase of their homes by the current deadline,” said Golder. “It would be a tragedy for them not to be able to complete the purchase in time to claim the credit.”

NAR issued the following state-by-state estimate of the number of home sales that would be delayed beyond the June 30 deadline; numbers are rounded to the nearest 10:

Alabama, 2,590; Alaska, 830; Arizona, 5,440; Arkansas, 2,090; California, 17,700; Colorado, 3,390; Connecticut, 1,770; Delaware, 400; District of Columbia, 300; Florida, 14,830; Georgia, 6,270; Hawaii, 710; Idaho, 1,270; Illinois, 7,030; Indiana, 3,560; Iowa, 2, 030; Kansas, 1,840; Kentucky, 2,540; Louisiana,1,800; Maine, 840; Maryland, 2,630; Massachusetts, 3,930; Michigan, 6,470; Minnesota, 3,760; Mississippi, 1,530; Missouri, 3,600; Montana, 760; Nebraska, 1,110; Nevada, 3,800; New Hampshire, 690; New Jersey, 4,300; New Mexico, 1,160; New York, 9,190; North Carolina, 4,890; North Dakota, 460; Ohio, 8,510; Oklahoma, 2,760; Oregon, 2,090; Pennsylvania, 5,830; Rhode Island, 500; South Carolina, 2,460; South Dakota, 500; Tennessee, 3,910; Texas, 15,340; Utah, 1,130; Vermont, 400; Virginia, 3,890; Washington, 3,190; West Virginia, 940; Wisconsin, 2,690; and Wyoming, 390.

Source: NAR