Friday, September 21, 2012

The List Of Improving Housing Markets Is Increasing

Provided By Realty Times


If you've been keeping a list, then, just like Santa, you'd better check it twice–not for who's naughty or nice–but rather which real estate markets are improving. According to the National Association of Home Builders (NAHB), "the number of improving housing markets across the country rose to 99 in September."

The data comes from NAHB's First American Improving Markets Index (IMI), released just this month. The figure is up from last month when there were only 80 metro areas on the list. Over six consecutive months, the Index looks at three categories: housing permits, employment, and house prices, to see how much they have improved from previous dips. The most recent IMI shows metro areas from 33 states as well as the District of Columbia.

The growth spurt is, obviously, good news to Barry Rutenber, chairman of NAHB and a Gainesville, Florida home builder. "This solid growth is an encouraging sign that housing continues on a slow but steady recovery path that is gradually advancing from one local market to the next."
NAHB reported that the list grew, overall, by 19. Retaining their spots on the current list were 68 metro areas. An additional 31 new metros were added, while only 12 dropped off.

"More metros across the country are experiencing a sustained uptick in house prices, employment and new building activity as rising consumer confidence in local market conditions pushes more people to consider a new-home purchase," stated NAHB Chief Economist David Crowe in a news release. The downside, according to Crowe, is the "overly tight lending conditions" which are slowing the pace for both builders and buyers.

Still, the NAHB reports that this is a positive sign. The IMI nationally tracks housing markets that are showing signs of improving economic health. In order to get a ranking on the top improving Metropolitan Statistical Areas, the index measures three sets of independent monthly data. Indicators analyzed are from the following areas and sources: employment growth (Bureau of Labor Statistics), home price appreciation (Freddie Mac) and single-family housing permit growth (U.S. Census Bureau). For a Metropolitan area to rank on the IMI, NAHB requires data to confirm improvements in all three measures for a period of at least six months following those measures' respective lows.

On the most current IMI, there are diverse geographical locations including: Tucson, Arizona; Jacksonville, Florida; Springfield, Illinois; Greenville, North Carolina; and Bend, Oregon.
This report will likely be touted as an indication that the housing market is, indeed, rebounding. What does that mean for sellers? It could mean perfect timing. The end of the year is nearing and many sellers are hoping to close escrow before 2012 wraps up. Seeing metro areas across the country improving may be the fuel needed to accelerate the process for the once hesitant and wary buyer.

If your home is on the market, check the full list of 99 improving housing markets on NAHB.org. If your metro area is listed, capitalize on the good news and be sure to have print materials with the information available for your potential buyers.

Wednesday, September 19, 2012

Red flags you're dealing with a bad contractor

Provided By Yahoo!




Your home is your sanctuary from all of life's stresses. So it makes sense that when it comes time to remodel, you want to find a professional home contractor that you can trust.
First things first, you'll want to do your homework and look to resources like your local Better Business Bureau (BBB).
"BBB handles a lot of inquiries and complaints about home contractors, and we constantly remind people - do your research first and make sure you select someone you feel comfortable with," says Katherine Hutt, director of communications and media relations at the Council of Better Business Bureaus.
To help you start the evaluation process, we've compiled a list of potential red flags to help you avoid fraudulent or just plain shady contractors.

Red Flag #1 - No References

Warning: Be wary of a contractor that can't provide you with any references.
"The only reason that someone may not have a lot of references is if the construction company is just getting started and does not have a lot of work under their belt," said Joe Rongisch, owner of Vantage Design & Construction in Gretna, Neb.
Prefer getting a reference from someone you know? Consider asking for personal recommendations from people you trust - family, friends, neighbors, or colleagues.
In fact, according to the National Association of the Remodeling Industry (NARI), nearly half of all projects completed by a remodeling contractor are the result of client referrals.

Red Flag #2 - No Listed Address

As a contractor, wouldn't you want the public to know your location?
It sounds like a no-brainer, but some contractors still don't advertise their address - and this is a warning sign to look out for.
"If a contractor is not willing to disclose his work address, it may mean he is working from his home," says Rongisch. That may not be a bad thing, unless a contractor is trying to stay under the radar, he adds.
When trying to determine if a contractor you're looking into has a legitimate address, here are a few tips: Look on the contracting company's website or in old phone books. You can also try calling the BBB or your local chamber of commerce to see if the company is listed with them.
Don't be afraid to ask the contractor why the business address isn't disclosed. If he or she avoids the question, it's probably wise to find another person for the job.

Red Flag #3 - No Permit

Steer away from contractors who say they won't need any permits to start building, repairing, or remodeling.
"If there is no permit, most likely, there is not going to be professional tradesmen on the project, and no way for city inspectors to verify that everything is being done to code," says Rongisch.
Besides requiring government inspection to make sure everything is up to code structurally, a permit can better ensure home insurance coverage. For example, if you don't have a building permit and damage occurs to the newly remodeled area, your insurance may not cover the replacement or liability costs, according to Rongisch.

And depending on your home's location, a permit might be necessary for changing the roofline, putting in new electrical wiring or plumbing, adding a deck, or building a new room, adds Rongisch.

Red Flag #4 - Door-to-Door Solicitation

Although legitimate businesspeople could solicit door-to-door, be cautious and do your research if you decide to hire a contractor who has knocked on your door.
Chip Voelsch, owner of BellaVita Builders, Inc. in Geneva, Ill., doesn't recommend hiring contractors that show up at your doorstep.
"They are looking for a quick turn and quick cash," says Voelsch. "They must be looking for work, and that is a red flag to me. I have never seen that good of craftsmanship when you are doing something quick."
Just keep in mind that not all door-to-door contractors are untrustworthy.
For instance, Rongisch says that some contractors - including his company - use door-to-door solicitation to get their name out in specific parts of a town.
"We have done this on occasion and have seen great results," adds Rongisch.

Red Flag #5 - No Certification or Insurance

A contractor without insurance is like pizza without cheese: It's just not right. To name just one example, if a contractor has no insurance and something happens while on the job, you are responsible for paying the cost in damages.
So how do you know if they are insured? Ask that the contractor's certificate of insurance be mailed or emailed directly to you from the insurance company. Don't accept a copy - it might not be legitimate.
"The true scam of all time is companies paying their insurance on Jan. 1, and then canceling it the next day to get all their money back," says Rich Cowgill, president of the National Association of the Remodeling Industry (NARI) Greater Chicagoland and owner of Vision Design and Build, Inc. in Willow Springs, Ill.
In fact, these sneaky contractors make copies of their certificate and use it all year, even though they really aren't insured, Cowgill adds.

On the other hand, trustworthy contractors will carry personal liability, property damage, and worker's compensation coverage, according to the Federal Trade Commission, a federal agency that protects American consumers.

Red Flag #6 - Full Payment Requested Prior to Starting Any Work

Another red flag to look out for: a contractor that requests the entire cost of the project up front.
You never want to pay the entire cost at once - especially if the contractor hasn't even started your project yet.
"No one ever asks for the full price of the job unless something is fishy," says Voelsch.
Consider a payment option like the BBB's rule of thirds: pay one third at the beginning of the project, one third when work is underway, and the final third when you are pleased with the final results, says the BBB's 2012 article "BBB Warns Contractors: Promising to Pay Insurance Deductibles is Illegal."
Just keep in mind that up-front costs may vary depending on the project and cost of materials.
"As a contractor, I don't want to be stuck with a bill to the lumberyard for someone's job," says Voelsch. "So, I usually ask for the price of the material by showing them the estimate of what it will cost."

Red Flag #7 - No Written Contract

What's another red flag to help you identify a sketchy home contractor? Answer: a contractor who fails to provide a written contract detailing the entire project's terms and conditions.
"A contract or proposal is very important for any job of any size," says Rongisch. "If there is no contract, there is nothing holding the contractor to what was said. Things are always forgotten or understood differently."

So what items need to be included? According to Cowgill, the contract should lay out details of the project - products and brand names with serial numbers - with the total price, including labor.
And if there are any changes along the way, they must be written and signed in a change order, adds Cowgill.

Red Flag #8 - No Chemistry

Just like in dating, you might feel that a contractor isn't "the one" after your first meeting.
"If he is a jerk in the beginning, he will be a jerk at the end," says Voelsch. "This has to be a good relationship back and forth."
This may sound like a no-brainer, but go with your instincts. If you feel uneasy after the first meeting, don't hire the contractor. There needs to be trust, and you need to feel comfortable around the person who will be working on - and in - your home.

The Bottom Line

This is your home and your money. So if you want to find the best contractor for your needs, you should take the time to research and ask Qs.

Monday, September 17, 2012

A Return To Normalcy?

Provided By Realty Times


As the residential real estate market continues to recover, developments in Southern California point to new trends within Los Angeles and throughout the nation. Specifically, the economic crisis - and all the attendant developments related to the rise and fall of prices in the last few years - now offers a return to normalcy. That is, the push by investors to buy foreclosed properties and distressed homes, resulting in purchases at the expected resale price, now has owners in a holding pattern -- which is not necessarily a bad thing.

This situation, which furthers a more conservative buy-and-hold strategy among investors, is good for everyone: residential brokers have qualified clients who want to own something, prices have a chance to stabilize and the market as a whole - the historic criteria by which we measure financial appreciation - revert to more predictable standards. These events offer all real estate brokers a reliable example of how to respond to increased demand in their respective cities.

To the extent that investors view the Los Angeles housing market as an inviting opportunity, and my professional experiences underscore this fact, they believe we are in a new era - a more attractive environment - where speculation is less common and growth is more steady. Brokers should welcome this news because it gives them the strongest argument about buying residential real estate: that a home is an investment, something that can steadily grow, provide income (for rental properties) and weather economies of both expansion and contraction. Indeed, brokers should work even more ambitiously with investors; their assets - knowledge and analysis about long-term performance for housing within a certain city or neighborhood - are they key to transforming a home from an inflated commodity into a tangible source of success.

The lesson here is simple: brokers and investors can work together, so the outcome is a restorative one; both parties can identify properties where, despite competitive bidding by other investors, the price for a home - and its relative worth among similar homes in the same neighborhood - can foster a sense of patience. For the one thing this market does not need - the chief agent responsible for distorting prices - is wild speculation. Fueled with easy access to credit, and accelerated by inexperienced buyers with unrealistic expectations, those factors are (and were) a recipe for financial disaster. Hence the importance for brokers and seasoned investors to collaborate with each other, creating a climate of reassurance and economic vitality.
By following these principles, Los Angeles can go from city with an asterisk (denoting excess inventory and massive foreclosures) to a place where the real estate market is alive and well. Brokers in other cities can replicate the success of Southern California, and bring depressed neighborhoods back to life. This period may, in fact, become a new golden age of recovery, stability and ultimate success.
The duty rests with investors and brokers to devise a plan away from speculation and towards stability. These groups are already near that point; they simply need to continue working with each other, for their own mutual benefit and the good of the community. The rewards will reverberate far beyond Los Angeles and the rest of Southern California.

Friday, September 14, 2012

Real Estate Outlook: New Home Sales Rise


Provided By Realty Times

The sales rate of newly built, single-family homes was on the rise during the month of July: this is welcome news to builders all across the nation.

According to the latest figures from HUD and the U.S. Census Bureau, sales of newly built homes rose by 3.6 percent for the month to a seasonally adjusted annual rate of 372,000 units.

"Sales of new homes in July returned to the same solid pace they set in May, which was the fastest sales rate we'd seen in more than two years," said Barry Rutenberg, chairman of the National Association of Home Builders (NAHB) and a home builder from Gainesville, Fla. "This is further evidence that consumers are becoming more confident in local housing markets as they look to take advantage of today's very favorable prices and interest rates."

Noting that the three-month moving average of new-home sales has been edging up consistently since last September, NAHB Chief Economist David Crowe said, "Today's good report is the latest indicator of a gradual, upward trend that we expect to continue through the remainder of this year." However, he added that "The fact that the inventory of new homes for sale reached an all-time low in July is a worrisome signal that ongoing, unnecessarily tight credit conditions are keeping builders from being able to replenish supplies as consumer demand improves."

Will this trend continue into our current month? The Mortgage Bankers Association (MBAA) reports that this week mortgage applications declined by 7.4 percent. Refinance activity also decreased by 9 percent. This is the lowest level since July.

Mortgage Refinancing now makes up 80.0 percent of total applications, down just slightly -- one percentage point -- from the week prior.

Affordability remains a hot topic in today's market. While affordability rates remain near record lows, will they remain so? And what about the low-income portion of the population?
A new report from HUD indicates that since its inception, the nation's low-income housing Tax Credit Program has helped produce more than 2.2 million affordable apartments. Now that the initial 15-year required "affordability period" has passed, the vast majority of theses LIHTC properties remain affordable for working families.

The HUD-commissioned report cautions, however, that this could all change as state and local use restrictions expire. Over a million units could become market-rate properties out of the reach of low-income households.

"This report is a wakeup call to all of us interested in preserving our nation's affordable housing," said HUD Secretary Shaun Donovan.  "As LIHTC properties age, especially in high-cost areas with escalating market demand, State Housing Finance Agencies must do everything they can to protect the opportunities for working families to live in neighborhoods they might otherwise not be able to afford."

The study's authors suggest that Housing Finance Agencies should place the highest priority on the developments that are most likely to be repositioned in the market -- as higher-rent housing or conversion to homeownership or another use.

Wednesday, September 12, 2012

TEXAS ECONOMY OUTPACES NATION'S


Provided By TAMU RECON

The Texas economy continues to grow at a rate higher than the national average, according to the Real Estate Center's latest Monthly Review of the Texas Economy.

The state gained 226,800 nonagricultural jobs from July 2011 to July 2012, an annual growth rate of 2.2 percent compared with 1.4 percent for the United States.

The state’s nongovernment sector added 260,400 jobs, an annual growth rate of 3 percent compared with 1.8 percent for the nation’s private sector.

Texas’ seasonally adjusted unemployment rate fell to 7.2 percent in July 2012 from 8.1 percent in July 2011. The nation’s rate decreased from 9.1 to 8.3 percent.

All Texas industries except the information industry had more jobs in July 2012 than in July 2011, but the state’s government sector continues to lose jobs. The state’s mining and logging industry ranked first in job creation, followed by the construction industry, the leisure and hospitality industry, and the professional and business services industry.

All Texas metro areas except Killeen-Temple-Fort Hood, Wichita Falls, Beaumont-Port Arthur, Abilene and Brownsville-Harlingen had more jobs in July 2012 than in July 2011. Texarkana ranked first in job creation followed by Odessa, Corpus Christi, Midland and Tyler.

The state’s actual unemployment rate in July 2012 was 7.5 percent. Midland had the lowest unemployment rate followed by Odessa, Amarillo, San Angelo and Abilene.

The Monthly Review of the Texas Economy was written by Center Research Economist Dr. Ali Anari and Chief Economist Dr. Mark Dotzour. It can be downloaded free from the Center's website.

Monday, September 10, 2012

Interest Rate Watch


Provided By Realty Times

Selected Rates as of September 7, 2012:
30 yr fixed:3.55%
15 yr. fixed:2.86%
1 yr. adj:2.61%