The developer of a $55 million Embassy Suites near the downtown convention center and Discovery Green park officially broke ground on the project Tuesday.
Construction of the 262-suite hotel, located at 1515 Dallas Avenue at La Branch, is expected to be completed in Spring 2011.
The project was supposed to get off the ground last year, but developer Nick Massad lost his loan to build it. Massad, of Houston-based American Liberty Hospitality, secured new funding at the end of last year.
The developer also got a boost from the city when council authorized a $9.6 million tax subsidy to the project as part of an effort to spur hotel development close to the George R. Brown Convention Center.
City Council passed a resolution last October which allows a hotel developer to keep hotel occupancy taxes for seven years if it builds within four blocks of the convention center. The Embassy Suites is the first hotel to fit that program, and city officials said they hoped it would make it easier to bring more midsized conventions to the city.
The Embassy Suites will include approximately 6,000 square feet of meeting and event space, a rooftop swimming pool, spa and fitness center, a restaurant, a street-level cafe and wine bar and two levels of underground parking.
By NANCY SARNOFF Copyright 2009 Houston Chronicle
May 26, 2009, 9:46PM
Wednesday, May 27, 2009
Wednesday, May 13, 2009
Credit in deep freeze in commercial real estate
There's no sign of a thaw in the frozen credit markets. If anything, the situation is getting worse for the real estate business.
The number of new loans for commercial properties plunged 70 percent in the first quarter from a year earlier, the Mortgage Bankers Association said Tuesday. And nationwide mortgage originations for the quarter were down 26 percent from the end of 2008.
"In the first quarter of 2009, we saw the effects of the continued recession, coupled with little demand from borrowers and a constrained supply from lenders as a result of the credit crunch," Jamie Woodwell, a Mortgage Bankers Association researcher, said in the report.
A lack of lending for commercial real estate deals has put the brakes on most new projects in the Dallas area and made it almost impossible for investors to finance purchases of offices, shopping centers, warehouses, hotels, apartments and other buildings.
Nationwide, the biggest drop in funding – 88 percent – was for hotels. Lending through mortgage-backed securities fell 96 percent from a year ago and bank loans for commercial real estate slid 80 percent, the trade group said.
12:00 AM CDT on Thursday, May 14, 2009
By STEVE BROWN / The Dallas Morning News
stevebrown@dallasnews.com
The number of new loans for commercial properties plunged 70 percent in the first quarter from a year earlier, the Mortgage Bankers Association said Tuesday. And nationwide mortgage originations for the quarter were down 26 percent from the end of 2008.
"In the first quarter of 2009, we saw the effects of the continued recession, coupled with little demand from borrowers and a constrained supply from lenders as a result of the credit crunch," Jamie Woodwell, a Mortgage Bankers Association researcher, said in the report.
A lack of lending for commercial real estate deals has put the brakes on most new projects in the Dallas area and made it almost impossible for investors to finance purchases of offices, shopping centers, warehouses, hotels, apartments and other buildings.
Nationwide, the biggest drop in funding – 88 percent – was for hotels. Lending through mortgage-backed securities fell 96 percent from a year ago and bank loans for commercial real estate slid 80 percent, the trade group said.
12:00 AM CDT on Thursday, May 14, 2009
By STEVE BROWN / The Dallas Morning News
stevebrown@dallasnews.com
Houston home prices fall for first time in 14 years
Housing values in nearly two-thirds of more than 2,000 Houston-area neighborhoods declined or stood still last year, according to an annual home price analysis commissioned by the Houston Chronicle. “That’s unusually high. In good years, we usually have many more up than down,” said Crawford Realty Advisors’ Evert Crawford, who conducted the study in conjunction with the University of Houston’s Institute for Regional Forecasting.
Overall, the median price per square foot of a single-family home fell 2 percent in 2008 to $72.71, marking the first time it has dropped into negative territory in 14 years. A year earlier, the median price rose 1.5 percent, according to the study, which evaluated 56,012 homes sold through the Multiple Listing Service in Harris, Fort Bend, Montgomery, Galveston and Brazoria counties. About 18 percent of those were new.
Other survey highlights:
• • Sales activity dropped in all counties for non-foreclosure transactions. All counties showed a rise in sales of foreclosed homes.
• • High median price increases were found in parts of The Woodlands, the Inner Loop, Memorial and southwest Houston just outside the 610 Loop.
• • The highest median price increase by school district was in Spring Branch ISD.
• • The ring between the Loop and Beltway 8 experienced the most softness, falling 7 percent, compared to the regions inside the Loop and outside the Beltway.
Part of what’s been dragging down home values are the high numbers of homes sold out of foreclosure, which rose substantially in 2008.
While high oil prices helped bolster the local economy through much of 2008, Hurricane Ike, the stock market plunge and a ballooning credit crisis during the latter part of the year took a toll.
Home sales were off 16 percent, as would-be buyers couldn’t qualify for mortgages or were too scared to make any big purchases amid an uncertain economy.
“Why would you go out and commit yourself to that much debt when jobs are a question mark? A lot of people have reason to wonder,” Crawford said.
Leslie Winston isn’t taking any chances. She’s selling her family’s house in an attempt to live debt-free throughout the recession.
“What I keep hearing is we haven’t seen the worst of it,” said Winston, who recently put her four-bedroom Meyerland house on the market.
When it sells, she and her husband plan to pay off their debt and rent a home closer to their church and daughter’s school inside the Loop.
“If over the next year the market takes a nose dive, we’ll be in a great position to buy,” Winston said.
Hopeful signs
Relatively speaking, Houston’s housing market hasn’t seen anything like other cities nationwide that saw huge price run-ups and are now seeing double-digit drops.
And federal efforts to stem foreclosures and stimulate sales are providing hope.
Almost everyone who showed up at a recent open house in Eldridge Park was a first-time buyer who had heard about an $8,000 federal tax credit, according to listing agent Amy McGee of Coldwell Banker.
Record-low interest rates should also help boost sales this spring and summer, said broker Ronnie Matthews. "That’s the one thing that can drive people,” said Matthews, owner of RE/MAX Legends. “If they’re comfortable with their job, now’s a pretty good time to buy.”
Still, he’s seeing more asking prices drop. Chris Blayney put a contract on a house in Bear Creek after the owner lowered the price by $10,000. “It looked like they hadn’t had a whole lot of offers,” Blayney said.
Some would-be buyers are still skeptical. Cindy Clifford started looking last year in the Montrose area. But she noticed houses lingering on the market, and then she started hearing about more people losing jobs.
“I’d hate to buy a house and the market drops,” said Clifford, who owns a public relations firm. She’s taken herself out of the market for now.
Tax assessments falling
The tax man has acknowledged the down market, too. The Harris County Appraisal District said nearly half of homeowners in the county saw their property values decline this year. A third saw no movement.
The total value of the 860,000 homes assessed so far has fallen by about 2.5 percent from last year, chief appraiser Jim Robinson said last month. It’s the first time property values have declined or stagnated since the 1980s.
Patrick O’Connor, president of the property valuation and consulting firm O’Connor & Associates, pegs the start of the slump to the decline in oil prices. He anticipates further declines until the national economy and global financial markets begin to moderate.
“Unfortunately it seems the bad news keeps coming,” he said. “It doesn’t seem like we’ve seen the end so far.”
nancy.sarnoff@chron.com
By NANCY SARNOFF Copyright 2009 Houston Chronicle
April 4, 2009, 9:05PM
Overall, the median price per square foot of a single-family home fell 2 percent in 2008 to $72.71, marking the first time it has dropped into negative territory in 14 years. A year earlier, the median price rose 1.5 percent, according to the study, which evaluated 56,012 homes sold through the Multiple Listing Service in Harris, Fort Bend, Montgomery, Galveston and Brazoria counties. About 18 percent of those were new.
Other survey highlights:
• • Sales activity dropped in all counties for non-foreclosure transactions. All counties showed a rise in sales of foreclosed homes.
• • High median price increases were found in parts of The Woodlands, the Inner Loop, Memorial and southwest Houston just outside the 610 Loop.
• • The highest median price increase by school district was in Spring Branch ISD.
• • The ring between the Loop and Beltway 8 experienced the most softness, falling 7 percent, compared to the regions inside the Loop and outside the Beltway.
Part of what’s been dragging down home values are the high numbers of homes sold out of foreclosure, which rose substantially in 2008.
While high oil prices helped bolster the local economy through much of 2008, Hurricane Ike, the stock market plunge and a ballooning credit crisis during the latter part of the year took a toll.
Home sales were off 16 percent, as would-be buyers couldn’t qualify for mortgages or were too scared to make any big purchases amid an uncertain economy.
“Why would you go out and commit yourself to that much debt when jobs are a question mark? A lot of people have reason to wonder,” Crawford said.
Leslie Winston isn’t taking any chances. She’s selling her family’s house in an attempt to live debt-free throughout the recession.
“What I keep hearing is we haven’t seen the worst of it,” said Winston, who recently put her four-bedroom Meyerland house on the market.
When it sells, she and her husband plan to pay off their debt and rent a home closer to their church and daughter’s school inside the Loop.
“If over the next year the market takes a nose dive, we’ll be in a great position to buy,” Winston said.
Hopeful signs
Relatively speaking, Houston’s housing market hasn’t seen anything like other cities nationwide that saw huge price run-ups and are now seeing double-digit drops.
And federal efforts to stem foreclosures and stimulate sales are providing hope.
Almost everyone who showed up at a recent open house in Eldridge Park was a first-time buyer who had heard about an $8,000 federal tax credit, according to listing agent Amy McGee of Coldwell Banker.
Record-low interest rates should also help boost sales this spring and summer, said broker Ronnie Matthews. "That’s the one thing that can drive people,” said Matthews, owner of RE/MAX Legends. “If they’re comfortable with their job, now’s a pretty good time to buy.”
Still, he’s seeing more asking prices drop. Chris Blayney put a contract on a house in Bear Creek after the owner lowered the price by $10,000. “It looked like they hadn’t had a whole lot of offers,” Blayney said.
Some would-be buyers are still skeptical. Cindy Clifford started looking last year in the Montrose area. But she noticed houses lingering on the market, and then she started hearing about more people losing jobs.
“I’d hate to buy a house and the market drops,” said Clifford, who owns a public relations firm. She’s taken herself out of the market for now.
Tax assessments falling
The tax man has acknowledged the down market, too. The Harris County Appraisal District said nearly half of homeowners in the county saw their property values decline this year. A third saw no movement.
The total value of the 860,000 homes assessed so far has fallen by about 2.5 percent from last year, chief appraiser Jim Robinson said last month. It’s the first time property values have declined or stagnated since the 1980s.
Patrick O’Connor, president of the property valuation and consulting firm O’Connor & Associates, pegs the start of the slump to the decline in oil prices. He anticipates further declines until the national economy and global financial markets begin to moderate.
“Unfortunately it seems the bad news keeps coming,” he said. “It doesn’t seem like we’ve seen the end so far.”
nancy.sarnoff@chron.com
By NANCY SARNOFF Copyright 2009 Houston Chronicle
April 4, 2009, 9:05PM
Average mortgage interest rates - May 13, 2009
Average interest rates for Mortgages as of May 13, 2009
Product
Avg. Rate
30-yr Fixed 4.899
15-yr Fixed 4.622
30-yr Fxd Jumbo 5.890
5/1 ARM 4.585
Powered by INFOTRAK
Product
Avg. Rate
30-yr Fixed 4.899
15-yr Fixed 4.622
30-yr Fxd Jumbo 5.890
5/1 ARM 4.585
Powered by INFOTRAK
Tuesday, April 28, 2009
Worst foreclosure rates found in 4 states
WASHINGTON – The 26 U.S. cities with the worst foreclosure problems are concentrated in four states — California, Florida, Arizona and Nevada, a report released Wednesday shows.
The report on foreclosures for the first quarter by RealtyTrac Inc. said the highest foreclosure rates were found in Las Vegas, Merced, Calif. and the Cape Coral-Fort Myers area in Florida. Next on the list were the California metro areas of Stockton, Riverside, Modesto, Bakersfield and Vallejo-Fairfield.
Rounding out the top 10 were Phoenix and Port St. Lucie, Fla. Outside of the four high-foreclosure states, the worst foreclosure rates were in Boise City, Idaho (No. 27) and Greeley, Colo. (No. 29).
The number of American households threatened with losing their homes grew 24 percent in the first three months of this year and is poised to rise further as major lenders restart foreclosures after a temporary break. Nationwide, nearly 804,000 homes received at least one foreclosure-related notice from January through March, up from about 650,000 in the same period a year earlier, RealtyTrac said last week.
The big unknown for the coming months is President Barack Obama's plan to help up to 9 million borrowers avoid foreclosure through refinanced mortgages or modified loans.
The Obama administration expects it to make a big dent in the foreclosure crisis. But it remains to be seen whether the lending industry will fully embrace the efforts, despite a promise of $75 billion in incentive payments.
__
On the Net:
RealtyTrac Inc.: http://www.realtytrac.com
The report on foreclosures for the first quarter by RealtyTrac Inc. said the highest foreclosure rates were found in Las Vegas, Merced, Calif. and the Cape Coral-Fort Myers area in Florida. Next on the list were the California metro areas of Stockton, Riverside, Modesto, Bakersfield and Vallejo-Fairfield.
Rounding out the top 10 were Phoenix and Port St. Lucie, Fla. Outside of the four high-foreclosure states, the worst foreclosure rates were in Boise City, Idaho (No. 27) and Greeley, Colo. (No. 29).
The number of American households threatened with losing their homes grew 24 percent in the first three months of this year and is poised to rise further as major lenders restart foreclosures after a temporary break. Nationwide, nearly 804,000 homes received at least one foreclosure-related notice from January through March, up from about 650,000 in the same period a year earlier, RealtyTrac said last week.
The big unknown for the coming months is President Barack Obama's plan to help up to 9 million borrowers avoid foreclosure through refinanced mortgages or modified loans.
The Obama administration expects it to make a big dent in the foreclosure crisis. But it remains to be seen whether the lending industry will fully embrace the efforts, despite a promise of $75 billion in incentive payments.
__
On the Net:
RealtyTrac Inc.: http://www.realtytrac.com
In volatile market, investors choose to buy, then rent
By NANCY SARNOFF Copyright 2009 Houston Chronicle
April 4, 2009, 6:05PM
Share Check out your neighborhood's prices here
Karen Davis and her boyfriend, Danny Diaz-Granados, just closed on their sixth investment property: a three-bedroom foreclosure in Richmond. They paid $78,000 for the 1,700-square-foot home, which was built in 1981 and is appraised for $140,000.
They plan to spend $15,000 fixing it up before they put it on the rental market. “Essentially we’ll be all in on the property for $100,000, but if we wanted to sell it immediately we could make 40 grand,” said Davis, a 29-year-old former waitress and student.
The couple started buying single-family homes last year after joining a real estate investor and mentor group that Davis now works for full time. They own four other houses in Spring and one in Katy. Their strategy is to buy properties for between 60 and 70 cents on the dollar, spend 10 percent to 15 percent fixing them up, and then rent them out.
“There are so many people who can’t afford to buy,” she said. “It’s very easy to rent.”
They are getting the cash to fix up the house through a rehab-to-permanent loan, which is like a short-term construction loan that’s refinanced once the renovations are completed.
After paying the monthly mortgage, Davis and Diaz-Granados, a 33-year-old oil landman, expect to net about $300 a month from rental income. That’s on top of the $1,200 they already earn on their other properties. Eventually, they’d like to own apartments. “The ultimate goal is to have enough passive income to replace my income and eventually his,” Davis said.
nancy.sarnoff@chron.com
April 4, 2009, 6:05PM
Share Check out your neighborhood's prices here
Karen Davis and her boyfriend, Danny Diaz-Granados, just closed on their sixth investment property: a three-bedroom foreclosure in Richmond. They paid $78,000 for the 1,700-square-foot home, which was built in 1981 and is appraised for $140,000.
They plan to spend $15,000 fixing it up before they put it on the rental market. “Essentially we’ll be all in on the property for $100,000, but if we wanted to sell it immediately we could make 40 grand,” said Davis, a 29-year-old former waitress and student.
The couple started buying single-family homes last year after joining a real estate investor and mentor group that Davis now works for full time. They own four other houses in Spring and one in Katy. Their strategy is to buy properties for between 60 and 70 cents on the dollar, spend 10 percent to 15 percent fixing them up, and then rent them out.
“There are so many people who can’t afford to buy,” she said. “It’s very easy to rent.”
They are getting the cash to fix up the house through a rehab-to-permanent loan, which is like a short-term construction loan that’s refinanced once the renovations are completed.
After paying the monthly mortgage, Davis and Diaz-Granados, a 33-year-old oil landman, expect to net about $300 a month from rental income. That’s on top of the $1,200 they already earn on their other properties. Eventually, they’d like to own apartments. “The ultimate goal is to have enough passive income to replace my income and eventually his,” Davis said.
nancy.sarnoff@chron.com
Monday, April 20, 2009
10 Secrets of Millionaires' Money Management
Kimberly Palmer
Tuesday April 14, 2009, 11:15 am EDT
It turns out millionaires are just like us--but they have a lot more money. When asked about their secrets to success, they don't cite anything magical or rare, but rather the steady application of wise investing strategies, hard work, and, believe it or not, a degree of frugality. Here are 10 secrets of millionaires' money management:
Start early to avoid financial pitfalls. Adrian Cartwood, 49, author of the blog How to Make 7 Million in 7 Years, made his fortune by living frugally while he built his technology-related business. People often get into trouble, he says, by racking up personal debt early on, which acts as a big drag on their earnings. "Learn how to live within your means and how to delay gratification; these are the habits that you need to maintain on the way up, so you can keep your millions when you get there," he says.
Believe that you can do it. Before investing in real estate and becoming a millionaire, Alan Corey, author of A Million Bucks by 30, read as many biographies and autobiographies of millionaires as he could find. He says he was searching for a common characteristic that could help him in his own quest. "What I found was they all had an incredible self-belief that they would be financially successful," he says. Corey says that embracing that level of self-confidence helped him get to the top.
Articulate your vision for success. Jen Smith, author of the Millionaire Mommy Next Door blog, says that the saying, "I want to be rich," is too vague. Instead, she recommends imagining what your ideal life as a millionaire will look like. Smith offers this example: "I want to have $2,000,000 invested so that I can live off of the interest. Then I will quit my job so that I can volunteer, travel, learn to play tennis and watercolor, and enjoy picnics at the beach with my family."
Smith's vision involved becoming financially-free before becoming a parent. She cut out images from magazines of beautiful places she wanted to visit and people doing fun things and put them near her desk to help her keep that vision in mind.
Insure against life's risks. Bankruptcy is often caused by divorce, a death in the family, or a disability that renders someone unable to work. Conversely, protecting against those risks through insurance protects wealth. In The Quiet Millionaire, financial planner Brett Wilder writes that many people either fail to get adequate insurance or pay too much for it because they don't understand it. [For more, read: "7 Killer Insurance Mistakes You're Probably Making."]
Work hard--and you'll get lucky. In his new book, Think Like a Champion, Donald Trump attributes his success to his hard work, which to outsiders often appears to be luck. But Trump says luck only comes from working hard. "If your work pays off, which it most likely will, people might say you're just lucky. Maybe so, because you're lucky enough to have the brains to work hard!" he says. That same concept, of course, was advocated by Benjamin Franklin in the 18th century. He said, "The harder I work, the luckier I get."
Practice smart budgeting. Smith recommends tracking how much you spend each month, something she does religiously. Every month, she downloads her transactions into a spreadsheet to keep her spending on track. Smith also says that, as prosaic as it sounds, maintaining a good credit score is essential to becoming and staying a millionaire. "A good credit score can save you thousands of dollars over the course of your lifetime," she says.
Do what you love. Sure, a career in finance might come with a hefty annual salary, but you probably won't excel at something you don't enjoy. That's why Corey recommends going into the field that you find yourself reading about in your spare time. He asks, "Do you read fashion magazines? Get a job in fashion. Do you read gossip blogs? Get a job in celebrity-based enterprises. Do you read Car & Driver? ESPN.com? Yahoo Pets Forum?" Even if the field doesn't seem lucrative, there are ways to make it to the top--something that's more likely to happen if you love it. [For more, read: "Juggling Your Money in the Recession."]
Decide how much money you really want. For many people, $1 million won't be enough. "For most Gen-X and Gen-Yers, retiring with a couple million when they are 65 won't be anywhere near enough to maintain even an average lifestyle, because that little pup called inflation is constantly nipping at your heels as you try to run towards building your own retirement nest-egg," says Cartwood. A more reasonable goal might be $3 million-- an amount that Cartwood considers the minimum to be a "bare bones millionaire" these days. Consider your ideal lifestyle and what you would like to be able to fund. A mortgage of a certain size? Exotic vacations? College tuition for your children? Having a concrete goal in mind makes it easier to get there, says Cartwood.
Invest against the grain. Corey recommends making investment decisions based on the exact opposite of what everyone else is doing. Right now, for example, stocks are relatively cheap because so many people have sold off shares, which means anyone buying can get them at a discount to their values from a year ago. Corey's rule of thumb doesn't just apply to stocks. "Buy a foreclosed house, fill it up with roommates, and you can get a pretty good passive income," he suggests.
Live below your means. Even Eminem, a celebrity and millionaire, scales back his purchases out of concern for frugality. In February, London's Independent newspaper reported that as Eminem considered buying a $15,000 watch he liked, he started worrying that he should save his money instead. Eminem reportedly said, "I don't want to run out of money; I want my daughter to be able to go to college." And so far, at least, Eminem hasn't fallen victim to the financial challenges so many other stars, from Aretha Franklin to Annie Leibovitz, have faced.
[For more, read: "How to Go Broke Like a Rock Star."]
On the same note, Smith says that even though she's a millionaire, no one would know it--and that's the point. She recommends saving at least 10 to 25 percent of your income. She also suggests avoiding buying "status" items, such as fancy sports cars or mansions. After all, bling doesn't make a millionaire--and in fact, too much of it can prevent you from ever becoming one.
Tuesday April 14, 2009, 11:15 am EDT
It turns out millionaires are just like us--but they have a lot more money. When asked about their secrets to success, they don't cite anything magical or rare, but rather the steady application of wise investing strategies, hard work, and, believe it or not, a degree of frugality. Here are 10 secrets of millionaires' money management:
Start early to avoid financial pitfalls. Adrian Cartwood, 49, author of the blog How to Make 7 Million in 7 Years, made his fortune by living frugally while he built his technology-related business. People often get into trouble, he says, by racking up personal debt early on, which acts as a big drag on their earnings. "Learn how to live within your means and how to delay gratification; these are the habits that you need to maintain on the way up, so you can keep your millions when you get there," he says.
Believe that you can do it. Before investing in real estate and becoming a millionaire, Alan Corey, author of A Million Bucks by 30, read as many biographies and autobiographies of millionaires as he could find. He says he was searching for a common characteristic that could help him in his own quest. "What I found was they all had an incredible self-belief that they would be financially successful," he says. Corey says that embracing that level of self-confidence helped him get to the top.
Articulate your vision for success. Jen Smith, author of the Millionaire Mommy Next Door blog, says that the saying, "I want to be rich," is too vague. Instead, she recommends imagining what your ideal life as a millionaire will look like. Smith offers this example: "I want to have $2,000,000 invested so that I can live off of the interest. Then I will quit my job so that I can volunteer, travel, learn to play tennis and watercolor, and enjoy picnics at the beach with my family."
Smith's vision involved becoming financially-free before becoming a parent. She cut out images from magazines of beautiful places she wanted to visit and people doing fun things and put them near her desk to help her keep that vision in mind.
Insure against life's risks. Bankruptcy is often caused by divorce, a death in the family, or a disability that renders someone unable to work. Conversely, protecting against those risks through insurance protects wealth. In The Quiet Millionaire, financial planner Brett Wilder writes that many people either fail to get adequate insurance or pay too much for it because they don't understand it. [For more, read: "7 Killer Insurance Mistakes You're Probably Making."]
Work hard--and you'll get lucky. In his new book, Think Like a Champion, Donald Trump attributes his success to his hard work, which to outsiders often appears to be luck. But Trump says luck only comes from working hard. "If your work pays off, which it most likely will, people might say you're just lucky. Maybe so, because you're lucky enough to have the brains to work hard!" he says. That same concept, of course, was advocated by Benjamin Franklin in the 18th century. He said, "The harder I work, the luckier I get."
Practice smart budgeting. Smith recommends tracking how much you spend each month, something she does religiously. Every month, she downloads her transactions into a spreadsheet to keep her spending on track. Smith also says that, as prosaic as it sounds, maintaining a good credit score is essential to becoming and staying a millionaire. "A good credit score can save you thousands of dollars over the course of your lifetime," she says.
Do what you love. Sure, a career in finance might come with a hefty annual salary, but you probably won't excel at something you don't enjoy. That's why Corey recommends going into the field that you find yourself reading about in your spare time. He asks, "Do you read fashion magazines? Get a job in fashion. Do you read gossip blogs? Get a job in celebrity-based enterprises. Do you read Car & Driver? ESPN.com? Yahoo Pets Forum?" Even if the field doesn't seem lucrative, there are ways to make it to the top--something that's more likely to happen if you love it. [For more, read: "Juggling Your Money in the Recession."]
Decide how much money you really want. For many people, $1 million won't be enough. "For most Gen-X and Gen-Yers, retiring with a couple million when they are 65 won't be anywhere near enough to maintain even an average lifestyle, because that little pup called inflation is constantly nipping at your heels as you try to run towards building your own retirement nest-egg," says Cartwood. A more reasonable goal might be $3 million-- an amount that Cartwood considers the minimum to be a "bare bones millionaire" these days. Consider your ideal lifestyle and what you would like to be able to fund. A mortgage of a certain size? Exotic vacations? College tuition for your children? Having a concrete goal in mind makes it easier to get there, says Cartwood.
Invest against the grain. Corey recommends making investment decisions based on the exact opposite of what everyone else is doing. Right now, for example, stocks are relatively cheap because so many people have sold off shares, which means anyone buying can get them at a discount to their values from a year ago. Corey's rule of thumb doesn't just apply to stocks. "Buy a foreclosed house, fill it up with roommates, and you can get a pretty good passive income," he suggests.
Live below your means. Even Eminem, a celebrity and millionaire, scales back his purchases out of concern for frugality. In February, London's Independent newspaper reported that as Eminem considered buying a $15,000 watch he liked, he started worrying that he should save his money instead. Eminem reportedly said, "I don't want to run out of money; I want my daughter to be able to go to college." And so far, at least, Eminem hasn't fallen victim to the financial challenges so many other stars, from Aretha Franklin to Annie Leibovitz, have faced.
[For more, read: "How to Go Broke Like a Rock Star."]
On the same note, Smith says that even though she's a millionaire, no one would know it--and that's the point. She recommends saving at least 10 to 25 percent of your income. She also suggests avoiding buying "status" items, such as fancy sports cars or mansions. After all, bling doesn't make a millionaire--and in fact, too much of it can prevent you from ever becoming one.
Friday, April 17, 2009
Houston home prices fall for first time in 14 years
By NANCY SARNOFFCopyright 2009 Houston Chronicle
April 4, 2009, 9:05PM
Check out your neighborhood's prices here
Housing values in nearly two-thirds of more than 2,000 Houston-area neighborhoods declined or stood still last year, according to an annual home price analysis commissioned by the Houston Chronicle.
“That’s unusually high. In good years, we usually have many more up than down,” said Crawford Realty Advisors’ Evert Crawford, who conducted the study in conjunction with the University of Houston’s Institute for Regional Forecasting.
Overall, the median price per square foot of a single-family home fell 2 percent in 2008 to $72.71, marking the first time it has dropped into negative territory in 14 years.
A year earlier, the median price rose 1.5 percent, according to the study, which evaluated 56,012 homes sold through the Multiple Listing Service in Harris, Fort Bend, Montgomery, Galveston and Brazoria counties. About 18 percent of those were new.
Other survey highlights:
• • Sales activity dropped in all counties for non-foreclosure transactions. All counties showed a rise in sales of foreclosed homes.
• • High median price increases were found in parts of The Woodlands, the Inner Loop, Memorial and southwest Houston just outside the 610 Loop.
• • The highest median price increase by school district was in Spring Branch ISD.
• • The ring between the Loop and Beltway 8 experienced the most softness, falling 7 percent, compared to the regions inside the Loop and outside the Beltway.
Part of what’s been dragging down home values are the high numbers of homes sold out of foreclosure, which rose substantially in 2008.
While high oil prices helped bolster the local economy through much of 2008, Hurricane Ike, the stock market plunge and a ballooning credit crisis during the latter part of the year took a toll.
Home sales were off 16 percent, as would-be buyers couldn’t qualify for mortgages or were too scared to make any big purchases amid an uncertain economy.
“Why would you go out and commit yourself to that much debt when jobs are a question mark? A lot of people have reason to wonder,” Crawford said.
Leslie Winston isn’t taking any chances. She’s selling her family’s house in an attempt to live debt-free throughout the recession.
“What I keep hearing is we haven’t seen the worst of it,” said Winston, who recently put her four-bedroom Meyerland house on the market.
When it sells, she and her husband plan to pay off their debt and rent a home closer to their church and daughter’s school inside the Loop.
“If over the next year the market takes a nose dive, we’ll be in a great position to buy,” Winston said.
Hopeful signs
Relatively speaking, Houston’s housing market hasn’t seen anything like other cities nationwide that saw huge price run-ups and are now seeing double-digit drops.
And federal efforts to stem foreclosures and stimulate sales are providing hope.
Almost everyone who showed up at a recent open house in Eldridge Park was a first-time buyer who had heard about an $8,000 federal tax credit, according to listing agent Amy McGee of Coldwell Banker.
Record-low interest rates should also help boost sales this spring and summer, said broker Ronnie Matthews. “That’s the one thing that can drive people,” said Matthews, owner of RE/MAX Legends. “If they’re comfortable with their job, now’s a pretty good time to buy.”
Still, he’s seeing more asking prices drop.
Chris Blayney put a contract on a house in Bear Creek after the owner lowered the price by $10,000. “It looked like they hadn’t had a whole lot of offers,” Blayney said.
Some would-be buyers are still skeptical. Cindy Clifford started looking last year in the Montrose area. But she noticed houses lingering on the market, and then she started hearing about more people losing jobs.
“I’d hate to buy a house and the market drops,” said Clifford, who owns a public relations firm. She’s taken herself out of the market for now.
Tax assessments falling
The tax man has acknowledged the down market, too. The Harris County Appraisal District said nearly half of homeowners in the county saw their property values decline this year. A third saw no movement.
The total value of the 860,000 homes assessed so far has fallen by about 2.5 percent from last year, chief appraiser Jim Robinson said last month. It’s the first time property values have declined or stagnated since the 1980s.
Patrick O’Connor, president of the property valuation and consulting firm O’Connor & Associates, pegs the start of the slump to the decline in oil prices. He anticipates further declines until the national economy and global financial markets begin to moderate. “Unfortunately it seems the bad news keeps coming,” he said. “It doesn’t seem like we’ve seen the end so far.”
April 4, 2009, 9:05PM
Check out your neighborhood's prices here
Housing values in nearly two-thirds of more than 2,000 Houston-area neighborhoods declined or stood still last year, according to an annual home price analysis commissioned by the Houston Chronicle.
“That’s unusually high. In good years, we usually have many more up than down,” said Crawford Realty Advisors’ Evert Crawford, who conducted the study in conjunction with the University of Houston’s Institute for Regional Forecasting.
Overall, the median price per square foot of a single-family home fell 2 percent in 2008 to $72.71, marking the first time it has dropped into negative territory in 14 years.
A year earlier, the median price rose 1.5 percent, according to the study, which evaluated 56,012 homes sold through the Multiple Listing Service in Harris, Fort Bend, Montgomery, Galveston and Brazoria counties. About 18 percent of those were new.
Other survey highlights:
• • Sales activity dropped in all counties for non-foreclosure transactions. All counties showed a rise in sales of foreclosed homes.
• • High median price increases were found in parts of The Woodlands, the Inner Loop, Memorial and southwest Houston just outside the 610 Loop.
• • The highest median price increase by school district was in Spring Branch ISD.
• • The ring between the Loop and Beltway 8 experienced the most softness, falling 7 percent, compared to the regions inside the Loop and outside the Beltway.
Part of what’s been dragging down home values are the high numbers of homes sold out of foreclosure, which rose substantially in 2008.
While high oil prices helped bolster the local economy through much of 2008, Hurricane Ike, the stock market plunge and a ballooning credit crisis during the latter part of the year took a toll.
Home sales were off 16 percent, as would-be buyers couldn’t qualify for mortgages or were too scared to make any big purchases amid an uncertain economy.
“Why would you go out and commit yourself to that much debt when jobs are a question mark? A lot of people have reason to wonder,” Crawford said.
Leslie Winston isn’t taking any chances. She’s selling her family’s house in an attempt to live debt-free throughout the recession.
“What I keep hearing is we haven’t seen the worst of it,” said Winston, who recently put her four-bedroom Meyerland house on the market.
When it sells, she and her husband plan to pay off their debt and rent a home closer to their church and daughter’s school inside the Loop.
“If over the next year the market takes a nose dive, we’ll be in a great position to buy,” Winston said.
Hopeful signs
Relatively speaking, Houston’s housing market hasn’t seen anything like other cities nationwide that saw huge price run-ups and are now seeing double-digit drops.
And federal efforts to stem foreclosures and stimulate sales are providing hope.
Almost everyone who showed up at a recent open house in Eldridge Park was a first-time buyer who had heard about an $8,000 federal tax credit, according to listing agent Amy McGee of Coldwell Banker.
Record-low interest rates should also help boost sales this spring and summer, said broker Ronnie Matthews. “That’s the one thing that can drive people,” said Matthews, owner of RE/MAX Legends. “If they’re comfortable with their job, now’s a pretty good time to buy.”
Still, he’s seeing more asking prices drop.
Chris Blayney put a contract on a house in Bear Creek after the owner lowered the price by $10,000. “It looked like they hadn’t had a whole lot of offers,” Blayney said.
Some would-be buyers are still skeptical. Cindy Clifford started looking last year in the Montrose area. But she noticed houses lingering on the market, and then she started hearing about more people losing jobs.
“I’d hate to buy a house and the market drops,” said Clifford, who owns a public relations firm. She’s taken herself out of the market for now.
Tax assessments falling
The tax man has acknowledged the down market, too. The Harris County Appraisal District said nearly half of homeowners in the county saw their property values decline this year. A third saw no movement.
The total value of the 860,000 homes assessed so far has fallen by about 2.5 percent from last year, chief appraiser Jim Robinson said last month. It’s the first time property values have declined or stagnated since the 1980s.
Patrick O’Connor, president of the property valuation and consulting firm O’Connor & Associates, pegs the start of the slump to the decline in oil prices. He anticipates further declines until the national economy and global financial markets begin to moderate. “Unfortunately it seems the bad news keeps coming,” he said. “It doesn’t seem like we’ve seen the end so far.”
Thursday, April 16, 2009
THE MOVIE, AMERICAN VIOLET, TELLS THE STORY OF THE DECEIT OF THE DRUG WAR
FOR IMMEDIATE RELEASE
Houston, Texas, AMER ICAN VIOLET, a Samuel Goldwyn film is scheduled to be released April 17, 2009; in certain parts of the country, however, it will be viewed in Houston, Texas on Monday & Tuesday, April 20th & 21st , 2009 at Regal Edward Greenway 24 Theater located at 3839 Weslayan St., Houston , TX 77027, beginning at 7:00 p.m. No admission fee.
Black United Fund of Texas, COTER , Gift of Life Drug-Free, Black Women for a Changing Society, and the Multi Cultural Film Festival are joined by Councilman Jarvis Johnson in hosting a very informative passionate movie about the pain of deciet that can kill a family, destroy trust, terminate faith, unravel a community and create pandemonium in a city when the law wears blinders with ear muffs and law and order, is out of order.
This film points out 95% of criminal convictions in this country are the result of plea-bargains, not jury trials. While the film is based on a specific case, the story it represents is hardly unique or isolated, and the film’s release presents an exceptional opportunity to explore how the drug war has become the new Jim Crow.
American Violet is based on real events and set in a small Texas town in the midst of the 2000 Bush/Gore Presidential election. AMER ICAN VIOLET tells the astonishing story of Regina Kelly (played by newcomer Nicole Beharie), a 24 year old African-American single mother of four who is wrongfully swept up in a drug raid. Despite the urgings of her mother (Academy Award® nominee Alfre Woodard), and with her freedom and the custody of her children at stake, she chooses to fight the powerful district attorney (Academy Award® nominee Michael O’Keefe) and the unyielding criminal justice system he represents. Joined in an alliance with an ACLU attorney (Tim Blake Nelson) and former local narcotics officer (Will Patton), Regina risks everything in a battle that forever changes her life, and the Texas justice system. AMER ICAN VIOLET also stars Emmy Award® winner Charles Dutton and Xzibit.
We are inviting organizations, elected officials, all churches and historically black colleges to support this film. Our hope is to create an arena for open discussion about how these judicial practices impact African Americans and their communities.
Talent from the film will be on hand for a Q&A to inspire feedback from the audience and lead the discussion, Tim Disney - director of the film and Regina Kelly - woman who inspired the film.
Please be there early showing begins at 7:00 p.m. There will be no admission as to why it is imperative to RSVP; seating is limited.
Regal Edward Greenway 24
3839 Weslayan St., Houston , TX 77027
MONDAY, APRIL 20TH @ 7:00PM
RSVP to http://us.mc835.mail.yahoo.com/mc/compose?to=avhouston@bazanpr.com or 1.888.246.7164-ext.709
TUESDAY, APRIL 21ST @ 7:00PM
http://www.youtube.com/watch?v=Qv8Jq09qU1Q
Houston, Texas, AMER ICAN VIOLET, a Samuel Goldwyn film is scheduled to be released April 17, 2009; in certain parts of the country, however, it will be viewed in Houston, Texas on Monday & Tuesday, April 20th & 21st , 2009 at Regal Edward Greenway 24 Theater located at 3839 Weslayan St., Houston , TX 77027, beginning at 7:00 p.m. No admission fee.
Black United Fund of Texas, COTER , Gift of Life Drug-Free, Black Women for a Changing Society, and the Multi Cultural Film Festival are joined by Councilman Jarvis Johnson in hosting a very informative passionate movie about the pain of deciet that can kill a family, destroy trust, terminate faith, unravel a community and create pandemonium in a city when the law wears blinders with ear muffs and law and order, is out of order.
This film points out 95% of criminal convictions in this country are the result of plea-bargains, not jury trials. While the film is based on a specific case, the story it represents is hardly unique or isolated, and the film’s release presents an exceptional opportunity to explore how the drug war has become the new Jim Crow.
American Violet is based on real events and set in a small Texas town in the midst of the 2000 Bush/Gore Presidential election. AMER ICAN VIOLET tells the astonishing story of Regina Kelly (played by newcomer Nicole Beharie), a 24 year old African-American single mother of four who is wrongfully swept up in a drug raid. Despite the urgings of her mother (Academy Award® nominee Alfre Woodard), and with her freedom and the custody of her children at stake, she chooses to fight the powerful district attorney (Academy Award® nominee Michael O’Keefe) and the unyielding criminal justice system he represents. Joined in an alliance with an ACLU attorney (Tim Blake Nelson) and former local narcotics officer (Will Patton), Regina risks everything in a battle that forever changes her life, and the Texas justice system. AMER ICAN VIOLET also stars Emmy Award® winner Charles Dutton and Xzibit.
We are inviting organizations, elected officials, all churches and historically black colleges to support this film. Our hope is to create an arena for open discussion about how these judicial practices impact African Americans and their communities.
Talent from the film will be on hand for a Q&A to inspire feedback from the audience and lead the discussion, Tim Disney - director of the film and Regina Kelly - woman who inspired the film.
Please be there early showing begins at 7:00 p.m. There will be no admission as to why it is imperative to RSVP; seating is limited.
Regal Edward Greenway 24
3839 Weslayan St., Houston , TX 77027
MONDAY, APRIL 20TH @ 7:00PM
RSVP to http://us.mc835.mail.yahoo.com/mc/compose?to=avhouston@bazanpr.com or 1.888.246.7164-ext.709
TUESDAY, APRIL 21ST @ 7:00PM
http://www.youtube.com/watch?v=Qv8Jq09qU1Q
Monday, April 13, 2009
Many ineligible for 'Home Affordable' refi's
This article describes the refinance part of the program, which applies only to mortgages owned or guaranteed by Fannie Mae or Freddie Mac.
Purpose: The objective of the refinance program is to allow borrowers to refinance who otherwise find it impossible or excessively costly because of declines in the value of their properties. Under the program, loan balances can range up to 105 percent of current property value, but in all other respects, borrowers must meet conventional underwriting requirements: their existing payments must be current; they cannot have more than one 30-day-late payment in the previous 12 months; and their income must be sufficient to cover the new payments.
Pricing: Interest rates under the program are "market rates," but what that means exactly is hard to say. It is not clear, for example, whether the agencies will charge more for a 90 percent loan that does not have mortgage insurance than for one that does. Whatever it means, we can be sure that prices will fluctuate from day to day, and that the prices loan originators quote to borrowers will include varying markups and fees on top of the prices at which they sell to the agencies. Markups will be particularly high on loans held by Freddie Mac, which will accept only those loans refinanced by the lender now servicing them.
Mortgage Insurance: An unusual feature of the program is that any mortgage insurance on the existing loan will be carried forward to the new loan. (Ordinarily, mortgage insurance is terminated when a loan is paid off and, if required, a new policy is issued on the new mortgage). The mortgage insurers have to agree to this arrangement, but since it is clearly in their interest, that should not be a problem.
This is a sensible idea, because it prevents a sudden drop in insurance premiums to the beleaguered mortgage insurers, and it also provides a way to comply with the rule that any loan acquired by Fannie or Freddie that exceeds 80 percent of property value carry mortgage insurance or its equivalent.
Borrowers who weren't required to obtain mortgage insurance on their original loan won't need insurance when refinancing, even if their loan-to-value ratio now exceeds 80 percent.
Rationale of the 105 percent Loan Cap: Capping the loan balance at 105 percent of value presumably is based on a judgment that borrowers with adequate income and a good payment record are not going to default just because they owe 5 percent more than their house is worth. That makes sense. What doesn't make sense is that borrowers with more than 5 percent negative equity are not eligible for the refinance program at all, and can't get their problem fixed by a loan modification under the second part of MHA, which is discussed next week.
Eligibility: In its documentation, Treasury states that eligible borrowers must occupy their homes, a provision I criticized last week. Interestingly, Fannie Mae's description of the program indicates that second homes and investor-owned properties are eligible, contradicting the Treasury. Let's hope Fannie prevails. Eligible structures can have up to four dwelling units so long as the borrower lives in one of them.
The home can have a second mortgage, the balance of which is not counted in the 105 percent cap, but the second mortgage lender has to agree to remain in a second lien position. Some second mortgage lenders charge a fee for stepping aside, so this could pose a problem in some cases.
Borrowers are not allowed to withdraw cash from the transaction, even to pay off other debts. However, they are allowed to include settlement costs in the new loan balance.
By far the most questionable eligibility rule is the one that restricts the program to borrowers whose mortgages are held by the agencies or are in a security guaranteed by them. Borrowers had no control over which investor ended up with their loan, yet this crap shoot now separates those who are and those who are not eligible for the program. Is there a good reason for excluding the other half of the market?
Questionable Rationale For Limiting the Program: As noted above, the agencies must obtain mortgage insurance on any loan they purchase that exceeds 80 percent of property value. Their regulator, the Federal Housing Finance Agency, has stated that the agencies will be in compliance with this rule when they refinance loans they already own or guarantee because they are already responsible for any default losses on these loans, and the refinance does not increase that risk. This rationale would not apply to loans owned by other investors.
However, the agency would also be in compliance with the 80 percent rule if it purchased loans held by other investors that now carry mortgage insurance that the insurer has agreed to transfer to the refinanced loan. This is also true of loans that originally met the 80 percent rule and still do. In a financial crisis, the net should be as wide as possible.
In any case, those borrowers who can take advantage of the program should. To see if you qualify, go to MakingHomeAffordable.gov.
The writer is professor of finance emeritus at the Wharton School of the University of Pennsylvania. Comments and questions can be left at www.mtgprofessor.com.
Purpose: The objective of the refinance program is to allow borrowers to refinance who otherwise find it impossible or excessively costly because of declines in the value of their properties. Under the program, loan balances can range up to 105 percent of current property value, but in all other respects, borrowers must meet conventional underwriting requirements: their existing payments must be current; they cannot have more than one 30-day-late payment in the previous 12 months; and their income must be sufficient to cover the new payments.
Pricing: Interest rates under the program are "market rates," but what that means exactly is hard to say. It is not clear, for example, whether the agencies will charge more for a 90 percent loan that does not have mortgage insurance than for one that does. Whatever it means, we can be sure that prices will fluctuate from day to day, and that the prices loan originators quote to borrowers will include varying markups and fees on top of the prices at which they sell to the agencies. Markups will be particularly high on loans held by Freddie Mac, which will accept only those loans refinanced by the lender now servicing them.
Mortgage Insurance: An unusual feature of the program is that any mortgage insurance on the existing loan will be carried forward to the new loan. (Ordinarily, mortgage insurance is terminated when a loan is paid off and, if required, a new policy is issued on the new mortgage). The mortgage insurers have to agree to this arrangement, but since it is clearly in their interest, that should not be a problem.
This is a sensible idea, because it prevents a sudden drop in insurance premiums to the beleaguered mortgage insurers, and it also provides a way to comply with the rule that any loan acquired by Fannie or Freddie that exceeds 80 percent of property value carry mortgage insurance or its equivalent.
Borrowers who weren't required to obtain mortgage insurance on their original loan won't need insurance when refinancing, even if their loan-to-value ratio now exceeds 80 percent.
Rationale of the 105 percent Loan Cap: Capping the loan balance at 105 percent of value presumably is based on a judgment that borrowers with adequate income and a good payment record are not going to default just because they owe 5 percent more than their house is worth. That makes sense. What doesn't make sense is that borrowers with more than 5 percent negative equity are not eligible for the refinance program at all, and can't get their problem fixed by a loan modification under the second part of MHA, which is discussed next week.
Eligibility: In its documentation, Treasury states that eligible borrowers must occupy their homes, a provision I criticized last week. Interestingly, Fannie Mae's description of the program indicates that second homes and investor-owned properties are eligible, contradicting the Treasury. Let's hope Fannie prevails. Eligible structures can have up to four dwelling units so long as the borrower lives in one of them.
The home can have a second mortgage, the balance of which is not counted in the 105 percent cap, but the second mortgage lender has to agree to remain in a second lien position. Some second mortgage lenders charge a fee for stepping aside, so this could pose a problem in some cases.
Borrowers are not allowed to withdraw cash from the transaction, even to pay off other debts. However, they are allowed to include settlement costs in the new loan balance.
By far the most questionable eligibility rule is the one that restricts the program to borrowers whose mortgages are held by the agencies or are in a security guaranteed by them. Borrowers had no control over which investor ended up with their loan, yet this crap shoot now separates those who are and those who are not eligible for the program. Is there a good reason for excluding the other half of the market?
Questionable Rationale For Limiting the Program: As noted above, the agencies must obtain mortgage insurance on any loan they purchase that exceeds 80 percent of property value. Their regulator, the Federal Housing Finance Agency, has stated that the agencies will be in compliance with this rule when they refinance loans they already own or guarantee because they are already responsible for any default losses on these loans, and the refinance does not increase that risk. This rationale would not apply to loans owned by other investors.
However, the agency would also be in compliance with the 80 percent rule if it purchased loans held by other investors that now carry mortgage insurance that the insurer has agreed to transfer to the refinanced loan. This is also true of loans that originally met the 80 percent rule and still do. In a financial crisis, the net should be as wide as possible.
In any case, those borrowers who can take advantage of the program should. To see if you qualify, go to MakingHomeAffordable.gov.
The writer is professor of finance emeritus at the Wharton School of the University of Pennsylvania. Comments and questions can be left at www.mtgprofessor.com.
Tuesday, February 24, 2009
What Obama Stimulus Means for Texas
President Obama's Economic Recovery Act is incredibly good news for Texas and for Houston, at just the right time. According to the Texas Legislative Budget Board and other analysis, Texas stands to receive:
At least $17 and up to $37 billion in overall funding;
$6.2 billion for education, which includes $3 billion for Houston-area schools and $158 million for HISD;
$5.8 billion for Health and Human Services, for Medicaid, food stamps, foster care, adoption and other services;
$2.8 billion for transportation;
$1.3 billion for Pell Grants to Texas students;
$1 billion for job search assistance and training and for child care;
$161 million for criminal justice;
$1 billion for housing.
The Economic Recovery Act is already working in Texas. Upon President Obama's signature, the Texas Associated General Contractors of Texas said 5,000 Texas jobs would be saved this month and that 5,000 jobs previously lost will be rehired this spring. Overall, the stimulus plan is expected to help create or save 269,000 jobs in this state.
Texas makes out so well under the Obama stimulus plan because, as noted above, we have so many needy citizens. While state leaders often brag about our low taxes and tight budget, we continue to provide too little to tens of thousands of needy and middle class Texans.
To examine the Economic Recovery Act in detail, go to: http://www.recovery.gov/
At least $17 and up to $37 billion in overall funding;
$6.2 billion for education, which includes $3 billion for Houston-area schools and $158 million for HISD;
$5.8 billion for Health and Human Services, for Medicaid, food stamps, foster care, adoption and other services;
$2.8 billion for transportation;
$1.3 billion for Pell Grants to Texas students;
$1 billion for job search assistance and training and for child care;
$161 million for criminal justice;
$1 billion for housing.
The Economic Recovery Act is already working in Texas. Upon President Obama's signature, the Texas Associated General Contractors of Texas said 5,000 Texas jobs would be saved this month and that 5,000 jobs previously lost will be rehired this spring. Overall, the stimulus plan is expected to help create or save 269,000 jobs in this state.
Texas makes out so well under the Obama stimulus plan because, as noted above, we have so many needy citizens. While state leaders often brag about our low taxes and tight budget, we continue to provide too little to tens of thousands of needy and middle class Texans.
To examine the Economic Recovery Act in detail, go to: http://www.recovery.gov/
Tuesday, February 17, 2009
America's Emptiest Cities
Vacancy rates in these spots spell lots of empty neighborhoods.
Call it a modern-day tale of two cities.
For decades, Las Vegas, ripe with new construction and economic development, burgeoned into a shimmering urban carnival. Detroit, once the fulcrum of American industry, sagged and rusted under its own weight.
These days, it's the worst of times for both.
Las Vegas edged Detroit for the title of America's most abandoned city. Atlanta came in third, followed by Greensboro, N.C., and Dayton, Ohio. Our rankings, a combination of rental and homeowner vacancy rates for the 75 largest metropolitan statistical areas in the country, are based on fourth-quarter data released Feb. 3 by the Census Bureau. Each was ranked on rental vacancies and housing vacancies; the final ranking is an average of the two.
Cities like Detroit and Dayton are casualties of America's lengthy industrial decline. Others, like Las Vegas and Orlando, are mostly victims of the recent housing bust. Boston and New York are among the lone bright spots, while Honolulu is the nation's best with a vacancy rate of 5.8% for homes and a scant 0.5% for rentals.
Still, empty neighborhoods are becoming an increasingly daunting problem across the country. The national rental vacancy rate now stands at 10.1%, up from 9.6% a year ago; homeowner vacancy has edged up from 2.8% to 2.9%. Richmond, Va.'s rental vacancy rate of 23.7% is the worst in America, while Orlando's 7.4% rate is lousiest on the homeowner side. Detroit and Las Vegas are among the worst offenders by both measures--the Motor City sports vacancy rates of 19.9% for rentals and 4% for homes; Sin City has rates of 16% and 4.7%, respectively.
"It's a mess," says Vegas developer Laurence Hallier. "Right now, things are just frozen. Everybody's scared."
Hallier, 40, knows from experience. His $600 million Panorama Towers complex was a tremendous success at its inception three years ago. The first of his four planned residential skyscrapers sold out in six months; the second, which opened in 2007, sold out in 12 weeks. As the third tower neared completion last fall, Hallier had sold 92% of its units. Then the recession hit, and only half the units ended up closing. Hallier says it will take years to break even, and plans for the fourth tower have been delayed indefinitely.
There are others who've made--and lost--far worse gambles on Vegas property. In 2007, Israeli billionaire Yitzhak Tshuva and partner Nochi Dankner paid $1.25 billion to buy a 34.5-acre site on the Strip, with plans to build an $8 billion mega-casino modeled after New York's Plaza Hotel. By November, the value of the lot had plummeted to $650 million--half what they paid for it. Groundbreaking on the casino has been pushed back to 2010, and today, the land may be worth less than the $625 million Tshuva and Dankner borrowed to buy it.
The Plaza debacle is emblematic of the problems afflicting millions of property owners in Vegas and around the country--and can explain, in large part, the origins of America's housing crisis.
As real estate prices skyrocketed during the boom, consumers took out massive loans to buy homes, assuming values would continue to rise. Instead they took a nosedive, especially in places like Las Vegas, Florida and Phoenix, where the housing boom had created excess inventory and so-called "bad loans" were rampant. Many homeowners suddenly found themselves with properties worth far less than the mortgages they'd taken out. In the worst cases, banks foreclosed, leaving people without homes--and with more debt than they'd had to begin with.
The situation in places like Las Vegas is bad enough, but Detroit's problems run much deeper. Though its vacancy rates are marginally better than Sin City's, Motown has been on the empty side for decades. An industrial boomtown during the first half of the 20th century, Detroit's population swelled from 285,000 in 1900 to 990,000 in 1920, reaching a peak of 1.8 million in 1950.
But starting in the 1960s, Detroit began a precipitous decline. Detroit's population is now 900,000--half what it was in the middle of the century--and many of its neighborhoods languish in varying states of decay. Most scholars blame rapid suburbanization, outsourcing of manufacturing jobs, and federal programs they say exacerbated the situation by creating a culture of joblessness and dependency.
Yet after more than half a century, countless scholars, politicians, community organizers developers and nonprofit workers have been unable to come up with a solution to fix Detroit.
Will Las Vegas eventually suffer the same fate? "I don't think Vegas is overbuilt," says Hallier. "Despite what everybody says, Vegas still has 2 million people."
Time will tell if this sort of optimism is warranted. Cynics who've witnessed Detroit's decline might liken Hallier's opinions to another Dickens oeuvre: Great Expectations.
In Depth: America's Emptiest Cities
Source: http://realestate.yahoo.com/promo/americas-emptiest-cities.html
Call it a modern-day tale of two cities.
For decades, Las Vegas, ripe with new construction and economic development, burgeoned into a shimmering urban carnival. Detroit, once the fulcrum of American industry, sagged and rusted under its own weight.
These days, it's the worst of times for both.
Las Vegas edged Detroit for the title of America's most abandoned city. Atlanta came in third, followed by Greensboro, N.C., and Dayton, Ohio. Our rankings, a combination of rental and homeowner vacancy rates for the 75 largest metropolitan statistical areas in the country, are based on fourth-quarter data released Feb. 3 by the Census Bureau. Each was ranked on rental vacancies and housing vacancies; the final ranking is an average of the two.
Cities like Detroit and Dayton are casualties of America's lengthy industrial decline. Others, like Las Vegas and Orlando, are mostly victims of the recent housing bust. Boston and New York are among the lone bright spots, while Honolulu is the nation's best with a vacancy rate of 5.8% for homes and a scant 0.5% for rentals.
Still, empty neighborhoods are becoming an increasingly daunting problem across the country. The national rental vacancy rate now stands at 10.1%, up from 9.6% a year ago; homeowner vacancy has edged up from 2.8% to 2.9%. Richmond, Va.'s rental vacancy rate of 23.7% is the worst in America, while Orlando's 7.4% rate is lousiest on the homeowner side. Detroit and Las Vegas are among the worst offenders by both measures--the Motor City sports vacancy rates of 19.9% for rentals and 4% for homes; Sin City has rates of 16% and 4.7%, respectively.
"It's a mess," says Vegas developer Laurence Hallier. "Right now, things are just frozen. Everybody's scared."
Hallier, 40, knows from experience. His $600 million Panorama Towers complex was a tremendous success at its inception three years ago. The first of his four planned residential skyscrapers sold out in six months; the second, which opened in 2007, sold out in 12 weeks. As the third tower neared completion last fall, Hallier had sold 92% of its units. Then the recession hit, and only half the units ended up closing. Hallier says it will take years to break even, and plans for the fourth tower have been delayed indefinitely.
There are others who've made--and lost--far worse gambles on Vegas property. In 2007, Israeli billionaire Yitzhak Tshuva and partner Nochi Dankner paid $1.25 billion to buy a 34.5-acre site on the Strip, with plans to build an $8 billion mega-casino modeled after New York's Plaza Hotel. By November, the value of the lot had plummeted to $650 million--half what they paid for it. Groundbreaking on the casino has been pushed back to 2010, and today, the land may be worth less than the $625 million Tshuva and Dankner borrowed to buy it.
The Plaza debacle is emblematic of the problems afflicting millions of property owners in Vegas and around the country--and can explain, in large part, the origins of America's housing crisis.
As real estate prices skyrocketed during the boom, consumers took out massive loans to buy homes, assuming values would continue to rise. Instead they took a nosedive, especially in places like Las Vegas, Florida and Phoenix, where the housing boom had created excess inventory and so-called "bad loans" were rampant. Many homeowners suddenly found themselves with properties worth far less than the mortgages they'd taken out. In the worst cases, banks foreclosed, leaving people without homes--and with more debt than they'd had to begin with.
The situation in places like Las Vegas is bad enough, but Detroit's problems run much deeper. Though its vacancy rates are marginally better than Sin City's, Motown has been on the empty side for decades. An industrial boomtown during the first half of the 20th century, Detroit's population swelled from 285,000 in 1900 to 990,000 in 1920, reaching a peak of 1.8 million in 1950.
But starting in the 1960s, Detroit began a precipitous decline. Detroit's population is now 900,000--half what it was in the middle of the century--and many of its neighborhoods languish in varying states of decay. Most scholars blame rapid suburbanization, outsourcing of manufacturing jobs, and federal programs they say exacerbated the situation by creating a culture of joblessness and dependency.
Yet after more than half a century, countless scholars, politicians, community organizers developers and nonprofit workers have been unable to come up with a solution to fix Detroit.
Will Las Vegas eventually suffer the same fate? "I don't think Vegas is overbuilt," says Hallier. "Despite what everybody says, Vegas still has 2 million people."
Time will tell if this sort of optimism is warranted. Cynics who've witnessed Detroit's decline might liken Hallier's opinions to another Dickens oeuvre: Great Expectations.
In Depth: America's Emptiest Cities
Source: http://realestate.yahoo.com/promo/americas-emptiest-cities.html
Tuesday, September 9, 2008
FHFA has placed Fannie Mae and Freddie Mac into Conservatorship
As you know, in a truly historic event yesterday, Treasury Secretary Paulson and Federal Housing Finance Agency Director Lockhart announced that “FHFA has placed Fannie Mae and Freddie Mac into conservatorship.” The government (FHFA) will now be managing Fannie Mae and Freddie Mac for the foreseeable future.
Below are some thoughts on this historic event…..
Overview
To stabilize and to stimulate the housing and financial markets, the Federal Government is taking the following key steps.
· The GSEs will be allowed to increase their MBS portfolios through the end of 2009
· Treasury will be initiating a program to purchase GSE mortgage-backed securities (through December 31, 2009)
· Treasury has established a new secured lending credit facility which will be available to Fannie Mae, Freddie Mac and the Federal Home Loan Banks
We believe that Treasury Secretary Paulson and the Bush Administration determined Fannie Mae and Freddie Mac were unable to perform their housing missions at a time when they were most needed because the GSEs were trying (unsuccessfully) to address safety and soundness issues associated with raising capital. As a result of this plan, Treasury has indicated that the GSEs will now not be under any pressure to sell assets.
In the short-term, we expect mortgage liquidity should improve. Rates should decline as the risk spreads built into the GSE pricing (due, in part, to fear of potential GSE failure) should be reduced if not eliminated. The extent of the decline will depend on what happens to Treasury yields in the coming days.
Without capital constraints in the near term and based on Secretary Paulson’s comments (see below) , we believe the new Fannie and Freddie will likely rollback at least some of their price increases and loosen underwriting requirements to some extent. It will be curious to see the MI reaction to this government intervention as their tightening of guidelines will now be “front and center” in the effort to expand mortgage financing availability.
We also believe Secretary Paulson’s call to examine the guaranty fee structure could lower those fees across-the-board. It will be interesting to see if the government-controlled GSEs will implement a Ginnie Mae-type flat fee structure and at what level.
On a longer term basis, there will be a “heavyweight” debate next year and beyond about the future size and structure of the GSEs (e.g. public or private entities). That debate will not occur until the new Congress and Administration take office next year.
Why did Treasury/FHFA take this action?
It appears to us that Treasury/FHFA lost confidence in Fannie Mae and Freddie’s Mac’s ability to support the housing recovery while, at the same time, addressing their safety and soundness responsibilities by preserving and raising capital. Below are some of Secretary Paulson and Director Lockhart’s remarks which lead us to this conclusion.
Director Lockhart said:
“Their market share of all new mortgages reached over 80 percent earlier this year, but it is now falling. During the turmoil last year, they (the GSEs) played a very important role in providing liquidity to the conforming mortgage market. That has required a very careful and delicate balance of mission and safety and soundness. A key component of this balance has been their ability to raise and maintain capital. Given recent market conditions, the balance has been lost. Unfortunately, as house prices, earnings and capital have continued to deteriorate, their ability to fulfill their mission has deteriorated. In particular, the capacity of their capital to absorb further losses while supporting new business activity is in doubt. Today’s action addresses safety and soundness concerns. … The result has been that they have been unable to provide needed stability to the market. They also find themselves unable to meet their affordable housing mission. Rather than letting these conditions fester and worsen and put our markets in jeopardy, FHFA, after painstaking review, has decided to take action now. “
Secretary Paulson said:
“I attribute the need for today’s action primarily to the inherent conflict and the flawed business model imbedded in the GSE structure and the ongoing housing correction”. He added that he has “long said, the housing correction poses the biggest risk to the economy”.
“Our economy and our markets will not recover until the bulk of this housing correction is behind us. Fannie Mae and Freddie Mac are critical to turning the corner” and that “the primary mission of these enterprises will now be to proactively work to increase the availability of mortgage finance including by examining the guaranty fee structure with an eye toward mortgage affordability”.
Comment
We have all seen the steps that Fannie Mae and Freddie Mac have taken to preserve and raise capital throughout this year. These measures have included raising prices on mortgages and tightening underwriting guidelines. As everyone is also aware, they have been aggressively trying to put back loans to seller-servicers who, in turn, are going back to originators.
Secretary Paulson in particular appeared to conclude that GSEs cannot serve two masters (i.e. its housing mission and its shareholders) during the housing crisis.
What does this mean?
To state the obvious, we are in uncharted waters. This plan is not a “silver bullet” that will address the underlying problems (i.e. record mortgage delinquency and foreclosures) that caused the need for this unprecedented action. MBA’s National Delinquency Survey last week indicated that over 9% of all mortgages are either delinquent or in the foreclosure process. While the new GSE approach to mortgage availability will increase the number of potentially eligible borrowers, it will likely not have any significant impact on affordability (borrowers must still qualify and make downpayments) in those markets where house prices increased the most during the “housing bubble” until house prices and borrower incomes are in line. With this as a caveat, below are our immediate thoughts.
· Short term goals
Two of the immediate goals of this action are: 1) “to increase the availability of mortgage finance” as Secretary Paulson said and 2) to lower mortgage interest rates through the Government guarantee of GSE debt.
· Long term objectives
On a longer term basis, the Government’s action yesterday raises the fundamental question about the government’s role in housing going forward. Secretary Paulson deferred the discussion of this question and the “flawed GSE business model” ( i.e. serving two masters ---public and private objectives) to the next Administration and Congress.
In this update, we will focus on short-term impact since the debate about the GSEs’ future structure and size will depend on who wins the election and the make-up of the Congress.
Short term Impact
For the housing industry, the short-term impact of the Government takeover appears to be positive.
· Mortgage rates should decline
· Liquidity should be increased
o GSEs should loosen standards (somewhat)
o GSEs should reduce fees including guaranty fees
· Some housing experts feel house price may stabilize sooner and the level of further house price decline will be moderated as a result
Potential Impact
· There could be a mini-refinance boom if the rate decline materializes.
o Hedging of servicing portfolios and pipeline problems will have to be addressed
There are many questions to be answered in the coming days and weeks:
(Here is a couple)
· How will the MIs react?
o Their underwriting and pricing policies will be “front and center” if the GSEs take the actions we expect
· What will the new Fannie/Freddie management’s policy be on buybacks? Will they be more reasonable? If so, credit policies may relax!
· On g-fees, will the GSEs pursue the Ginnie Mae approach (uniform g-fees across the board)?
· What will be the new GSEs do with respect to lender relationships (preferential pricing, etc.)?
Jillian Sorensen
Account Executive
Franklin American Mortgage Company
Below are some thoughts on this historic event…..
Overview
To stabilize and to stimulate the housing and financial markets, the Federal Government is taking the following key steps.
· The GSEs will be allowed to increase their MBS portfolios through the end of 2009
· Treasury will be initiating a program to purchase GSE mortgage-backed securities (through December 31, 2009)
· Treasury has established a new secured lending credit facility which will be available to Fannie Mae, Freddie Mac and the Federal Home Loan Banks
We believe that Treasury Secretary Paulson and the Bush Administration determined Fannie Mae and Freddie Mac were unable to perform their housing missions at a time when they were most needed because the GSEs were trying (unsuccessfully) to address safety and soundness issues associated with raising capital. As a result of this plan, Treasury has indicated that the GSEs will now not be under any pressure to sell assets.
In the short-term, we expect mortgage liquidity should improve. Rates should decline as the risk spreads built into the GSE pricing (due, in part, to fear of potential GSE failure) should be reduced if not eliminated. The extent of the decline will depend on what happens to Treasury yields in the coming days.
Without capital constraints in the near term and based on Secretary Paulson’s comments (see below) , we believe the new Fannie and Freddie will likely rollback at least some of their price increases and loosen underwriting requirements to some extent. It will be curious to see the MI reaction to this government intervention as their tightening of guidelines will now be “front and center” in the effort to expand mortgage financing availability.
We also believe Secretary Paulson’s call to examine the guaranty fee structure could lower those fees across-the-board. It will be interesting to see if the government-controlled GSEs will implement a Ginnie Mae-type flat fee structure and at what level.
On a longer term basis, there will be a “heavyweight” debate next year and beyond about the future size and structure of the GSEs (e.g. public or private entities). That debate will not occur until the new Congress and Administration take office next year.
Why did Treasury/FHFA take this action?
It appears to us that Treasury/FHFA lost confidence in Fannie Mae and Freddie’s Mac’s ability to support the housing recovery while, at the same time, addressing their safety and soundness responsibilities by preserving and raising capital. Below are some of Secretary Paulson and Director Lockhart’s remarks which lead us to this conclusion.
Director Lockhart said:
“Their market share of all new mortgages reached over 80 percent earlier this year, but it is now falling. During the turmoil last year, they (the GSEs) played a very important role in providing liquidity to the conforming mortgage market. That has required a very careful and delicate balance of mission and safety and soundness. A key component of this balance has been their ability to raise and maintain capital. Given recent market conditions, the balance has been lost. Unfortunately, as house prices, earnings and capital have continued to deteriorate, their ability to fulfill their mission has deteriorated. In particular, the capacity of their capital to absorb further losses while supporting new business activity is in doubt. Today’s action addresses safety and soundness concerns. … The result has been that they have been unable to provide needed stability to the market. They also find themselves unable to meet their affordable housing mission. Rather than letting these conditions fester and worsen and put our markets in jeopardy, FHFA, after painstaking review, has decided to take action now. “
Secretary Paulson said:
“I attribute the need for today’s action primarily to the inherent conflict and the flawed business model imbedded in the GSE structure and the ongoing housing correction”. He added that he has “long said, the housing correction poses the biggest risk to the economy”.
“Our economy and our markets will not recover until the bulk of this housing correction is behind us. Fannie Mae and Freddie Mac are critical to turning the corner” and that “the primary mission of these enterprises will now be to proactively work to increase the availability of mortgage finance including by examining the guaranty fee structure with an eye toward mortgage affordability”.
Comment
We have all seen the steps that Fannie Mae and Freddie Mac have taken to preserve and raise capital throughout this year. These measures have included raising prices on mortgages and tightening underwriting guidelines. As everyone is also aware, they have been aggressively trying to put back loans to seller-servicers who, in turn, are going back to originators.
Secretary Paulson in particular appeared to conclude that GSEs cannot serve two masters (i.e. its housing mission and its shareholders) during the housing crisis.
What does this mean?
To state the obvious, we are in uncharted waters. This plan is not a “silver bullet” that will address the underlying problems (i.e. record mortgage delinquency and foreclosures) that caused the need for this unprecedented action. MBA’s National Delinquency Survey last week indicated that over 9% of all mortgages are either delinquent or in the foreclosure process. While the new GSE approach to mortgage availability will increase the number of potentially eligible borrowers, it will likely not have any significant impact on affordability (borrowers must still qualify and make downpayments) in those markets where house prices increased the most during the “housing bubble” until house prices and borrower incomes are in line. With this as a caveat, below are our immediate thoughts.
· Short term goals
Two of the immediate goals of this action are: 1) “to increase the availability of mortgage finance” as Secretary Paulson said and 2) to lower mortgage interest rates through the Government guarantee of GSE debt.
· Long term objectives
On a longer term basis, the Government’s action yesterday raises the fundamental question about the government’s role in housing going forward. Secretary Paulson deferred the discussion of this question and the “flawed GSE business model” ( i.e. serving two masters ---public and private objectives) to the next Administration and Congress.
In this update, we will focus on short-term impact since the debate about the GSEs’ future structure and size will depend on who wins the election and the make-up of the Congress.
Short term Impact
For the housing industry, the short-term impact of the Government takeover appears to be positive.
· Mortgage rates should decline
· Liquidity should be increased
o GSEs should loosen standards (somewhat)
o GSEs should reduce fees including guaranty fees
· Some housing experts feel house price may stabilize sooner and the level of further house price decline will be moderated as a result
Potential Impact
· There could be a mini-refinance boom if the rate decline materializes.
o Hedging of servicing portfolios and pipeline problems will have to be addressed
There are many questions to be answered in the coming days and weeks:
(Here is a couple)
· How will the MIs react?
o Their underwriting and pricing policies will be “front and center” if the GSEs take the actions we expect
· What will the new Fannie/Freddie management’s policy be on buybacks? Will they be more reasonable? If so, credit policies may relax!
· On g-fees, will the GSEs pursue the Ginnie Mae approach (uniform g-fees across the board)?
· What will be the new GSEs do with respect to lender relationships (preferential pricing, etc.)?
Jillian Sorensen
Account Executive
Franklin American Mortgage Company
Wednesday, April 30, 2008
Fed cuts rates as economy slumps, hoping to stop recession
WASHINGTON - Scrambling to shore up the faltering economy, the Federal Reserve cut interest rates to the lowest point in nearly four years Wednesday as the nation teetered on the edge of recession.
Wall Street rallied at first but then pulled back, concerned that the reduction might be the last for a while.
In fact, the Fed's trim was smaller than those of recent months amid indications the central bank might pause to see if months of powerful rate-cutting medicine and billions of dollars in stimulus checks will be enough to lift the country out of its slump.
Chairman Ben Bernanke led a divided Fed, in an 8-2 vote, in slicing its key rate by one-quarter percentage point to 2 percent.
In turn, the prime lending rate for millions of consumers and businesses fell by a corresponding amount, to 5 percent. The prime rate applies to certain credit cards, home equity lines of credit and other loans. Both rates are the lowest since late 2004.
The Federal Reserve, which has been dropping rates since last September, turned much more forceful early this year when housing, credit and financial problems worsened. Rate reductions in January and March alone marked the most aggressive intervention in a quarter-century in an effort to re-energize consumers and businesses.
Enthusiastic Wall Street investors drove the Dow Jones industrial average up more than 178 points — lifting it above 13,000 for the first time since early January — right after the Fed action. Then traders' caution returned, and the index ended the day 11.81 points below where it started.
Although the Fed didn't take another reduction off the table, a growing number of economists believe the central bank is winding down its rate-cutting campaign. Barring another hit to economic growth, they believe rates probably will stay where they are — perhaps through the rest of this year — in part because the Federal Reserve is concerned that further cuts could join with galloping energy and food prices and spread inflation dangerously higher.
By all accounts, the country's economic health is fragile.
The economy crawled ahead at a pace of just 0.6 percent from January through March as housing and credit problems forced people and businesses to hunker down, the Commerce Department reported hours before the Fed's action. Growth had been just as feeble in the prior quarter.
Job losses for the first three months of the year neared the staggering quarter-million mark, and a government report on Friday is expected to show that employers shed jobs again in April. The unemployment rate, now at 5.1 percent, also could creep higher in April and hit 6 percent early next year, analysts say.
"Recent information indicates that economic activity remains weak," the Fed said. "Household and business spending has been subdued, and labor markets have softened further. Financial markets remain under considerable stress, and tight credit conditions and the deepening housing contraction are likely to weigh on economic growth over the next few quarters."
Two members — Charles Plosser, president of the Federal Reserve Bank of Philadelphia, and Richard Fisher, president of the Federal Reserve Bank of Dallas — opposed cutting rates Wednesday, a crack in the usually unified front the Fed often shows the public.
Both men have a reputation for being especially vigilant about fighting inflation. At the Fed's previous meeting in March, they opposed cutting rates by a whopping three-quarters point and preferred a smaller reduction.
"The Fed didn't completely shut the door on rate cuts but they closed it part way," said Mark Zandi, chief economist at Moody's Economy.com. "I think the overall message was they've done a lot already to help the economy and think this will be enough. But they stand ready to do more if that is needed."
Source: www.yahoo.com , April 30, 2008, Associated Press
Wall Street rallied at first but then pulled back, concerned that the reduction might be the last for a while.
In fact, the Fed's trim was smaller than those of recent months amid indications the central bank might pause to see if months of powerful rate-cutting medicine and billions of dollars in stimulus checks will be enough to lift the country out of its slump.
Chairman Ben Bernanke led a divided Fed, in an 8-2 vote, in slicing its key rate by one-quarter percentage point to 2 percent.
In turn, the prime lending rate for millions of consumers and businesses fell by a corresponding amount, to 5 percent. The prime rate applies to certain credit cards, home equity lines of credit and other loans. Both rates are the lowest since late 2004.
The Federal Reserve, which has been dropping rates since last September, turned much more forceful early this year when housing, credit and financial problems worsened. Rate reductions in January and March alone marked the most aggressive intervention in a quarter-century in an effort to re-energize consumers and businesses.
Enthusiastic Wall Street investors drove the Dow Jones industrial average up more than 178 points — lifting it above 13,000 for the first time since early January — right after the Fed action. Then traders' caution returned, and the index ended the day 11.81 points below where it started.
Although the Fed didn't take another reduction off the table, a growing number of economists believe the central bank is winding down its rate-cutting campaign. Barring another hit to economic growth, they believe rates probably will stay where they are — perhaps through the rest of this year — in part because the Federal Reserve is concerned that further cuts could join with galloping energy and food prices and spread inflation dangerously higher.
By all accounts, the country's economic health is fragile.
The economy crawled ahead at a pace of just 0.6 percent from January through March as housing and credit problems forced people and businesses to hunker down, the Commerce Department reported hours before the Fed's action. Growth had been just as feeble in the prior quarter.
Job losses for the first three months of the year neared the staggering quarter-million mark, and a government report on Friday is expected to show that employers shed jobs again in April. The unemployment rate, now at 5.1 percent, also could creep higher in April and hit 6 percent early next year, analysts say.
"Recent information indicates that economic activity remains weak," the Fed said. "Household and business spending has been subdued, and labor markets have softened further. Financial markets remain under considerable stress, and tight credit conditions and the deepening housing contraction are likely to weigh on economic growth over the next few quarters."
Two members — Charles Plosser, president of the Federal Reserve Bank of Philadelphia, and Richard Fisher, president of the Federal Reserve Bank of Dallas — opposed cutting rates Wednesday, a crack in the usually unified front the Fed often shows the public.
Both men have a reputation for being especially vigilant about fighting inflation. At the Fed's previous meeting in March, they opposed cutting rates by a whopping three-quarters point and preferred a smaller reduction.
"The Fed didn't completely shut the door on rate cuts but they closed it part way," said Mark Zandi, chief economist at Moody's Economy.com. "I think the overall message was they've done a lot already to help the economy and think this will be enough. But they stand ready to do more if that is needed."
Source: www.yahoo.com , April 30, 2008, Associated Press
Scripture for Today
VERSE: And do not grieve the Holy Spirit of God, with whom you weresealed for the day of redemption. Get rid of all bitterness, rageand anger, brawling and slander, along with every form of malice. -- Ephesians 4:30-31 http://www.SearchGodsWord.org/desk/?query=Ephesians+4:30-31
THOUGHT: Don't make God's Spirit sad! But how do we do that? By harboringbitterness, unleashing anger driven rage, fighting with others andslandering their name while plotting to harm them. These things arethe exact opposite of the qualities the Spirit is seeking toproduce in our lives (Galatians 5:22-23). No wonder it makes himsad!
PRAYER: Almighty Father, please make me more like Jesus by the power ofyour Holy Spirit. In Jesus' name I pray. Amen.http://www.heartlight.org/cgi-shl/todaysverse.cgi?day=20080430
THOUGHT: Don't make God's Spirit sad! But how do we do that? By harboringbitterness, unleashing anger driven rage, fighting with others andslandering their name while plotting to harm them. These things arethe exact opposite of the qualities the Spirit is seeking toproduce in our lives (Galatians 5:22-23). No wonder it makes himsad!
PRAYER: Almighty Father, please make me more like Jesus by the power ofyour Holy Spirit. In Jesus' name I pray. Amen.http://www.heartlight.org/cgi-shl/todaysverse.cgi?day=20080430
Friday, April 25, 2008
5 Easy Ways to Sell Your Home Faster
You don’t have to take on a full-fledged renovation to get prospective buyers interested in your house—in fact, that may even turn some people away in a challenging market. After all, every penny that you’ve sunk into an obvious upgrade is money that the seller is mentally adding up as a factor in the price—and may represent an aesthetic choice the buyer would not have made. (Cancel that appointment at the Sub-Zero showroom, STAT.) There are simple ways, however, to make your home seem infinitely more appealing with very little investment—and very little effort.
1. If you do only two things before showing your house, clean, and clean some more. “People want to come into a space and visualize themselves living there,” says Manhattan-based Corcoran Group sales broker Jeanine Schlifer. “If there are spills on the table, toys on the floor, and dog mess everywhere, people can’t focus on the space.” It’s worth it to hire a professional to come in for a deep-clean, as they may find dirt in places you can easily overlook, like scuffs on walls and smudged light switch plates.
2. Accentuate the positive, camouflage the negative. If you have large windows or a great view, hang long, simple curtains to accentuate them. (Hanging curtains from just above and outside the window frame will also make ceilings feel higher and windows more impressive.) If you have spacious rooms, remove any too-bulky furniture or unnecessary pieces that would make the space feel cramped. Geller suggests looking at furniture catalogs to get ideas for pleasing furniture proportions, arrangements, and an idea of how many pieces to keep in a room. If your closets are tiny, pull out some of the clothes and store them elsewhere.
3. Appeal to the widest possible audience. If you have a hot-pink accent wall, paint over it with a more neutral shade that matches the other walls. Pack away that collection of Star Wars figurines. Stash kids’ toys or dog toys in another room. “Remember that you’re selling your home, not your personality,” Schlifer says. And a prospective buyer who hates dogs could get hung up on your giant training crate and pile of rawhide bones. (Be sure to also take pets to a friend’s house or a kennel and vacuum well before any showings—a sneezing, fur-allergic buyer is not a happy one.)
4. Create a welcoming environment. “You want buyers to make an emotional connection to your home,” Schlifer says, and you can go a long way toward achieving that by making the space feel warm, bright, and fresh. Replace dim light bulbs with new ones and make sure there is a pleasant, but not overpowering, smell in the house. (Try baking cookies or setting out a scented-oil diffuser.) Place fresh guest soaps in the bathroom, hang a new shower curtain and neatly fold matching bath towels.
5. Develop a quick-clean plan for last-minute showings. You never know when a realtor may have an interested client, so it’s important to have a speedy cleaning plan for spontaneous appointments. Invest in a nice-looking storage trunk for stashing day-to-day clutter in a hurry and make a habit of kicking up your regular cleaning routine a notch so there’s less to do before a visit.
Source: www.yahoo.com Valerie Rains, Shine staff, on Sun Apr 20, 2008 .
1. If you do only two things before showing your house, clean, and clean some more. “People want to come into a space and visualize themselves living there,” says Manhattan-based Corcoran Group sales broker Jeanine Schlifer. “If there are spills on the table, toys on the floor, and dog mess everywhere, people can’t focus on the space.” It’s worth it to hire a professional to come in for a deep-clean, as they may find dirt in places you can easily overlook, like scuffs on walls and smudged light switch plates.
2. Accentuate the positive, camouflage the negative. If you have large windows or a great view, hang long, simple curtains to accentuate them. (Hanging curtains from just above and outside the window frame will also make ceilings feel higher and windows more impressive.) If you have spacious rooms, remove any too-bulky furniture or unnecessary pieces that would make the space feel cramped. Geller suggests looking at furniture catalogs to get ideas for pleasing furniture proportions, arrangements, and an idea of how many pieces to keep in a room. If your closets are tiny, pull out some of the clothes and store them elsewhere.
3. Appeal to the widest possible audience. If you have a hot-pink accent wall, paint over it with a more neutral shade that matches the other walls. Pack away that collection of Star Wars figurines. Stash kids’ toys or dog toys in another room. “Remember that you’re selling your home, not your personality,” Schlifer says. And a prospective buyer who hates dogs could get hung up on your giant training crate and pile of rawhide bones. (Be sure to also take pets to a friend’s house or a kennel and vacuum well before any showings—a sneezing, fur-allergic buyer is not a happy one.)
4. Create a welcoming environment. “You want buyers to make an emotional connection to your home,” Schlifer says, and you can go a long way toward achieving that by making the space feel warm, bright, and fresh. Replace dim light bulbs with new ones and make sure there is a pleasant, but not overpowering, smell in the house. (Try baking cookies or setting out a scented-oil diffuser.) Place fresh guest soaps in the bathroom, hang a new shower curtain and neatly fold matching bath towels.
5. Develop a quick-clean plan for last-minute showings. You never know when a realtor may have an interested client, so it’s important to have a speedy cleaning plan for spontaneous appointments. Invest in a nice-looking storage trunk for stashing day-to-day clutter in a hurry and make a habit of kicking up your regular cleaning routine a notch so there’s less to do before a visit.
Source: www.yahoo.com Valerie Rains, Shine staff, on Sun Apr 20, 2008 .
Scripture for Today
VERSE: He [Jesus] was delivered over to death for our sins and was raised to life for our justification. -- Romans 4:25 http://www.SearchGodsWord.org/desk/?query=Romans+4:25
THOUGHT: Why are the Cross and the Empty Tomb so important? Because everything important and truly lasting in life depends upon them!
PRAYER: Thank you, dear Father, for paying such an awful price forcleansing me of my sins. Thank you, precious Savior, for sacrificing everything to save me. Thank you, Holy Spirit, forcleansing me and living inside me to conform me to Christ. In hisname, Jesus of Nazareth, I pray. Amen.
http://www.heartlight.org/cgi-shl/todaysverse.cgi?day=20080425
THOUGHT: Why are the Cross and the Empty Tomb so important? Because everything important and truly lasting in life depends upon them!
PRAYER: Thank you, dear Father, for paying such an awful price forcleansing me of my sins. Thank you, precious Savior, for sacrificing everything to save me. Thank you, Holy Spirit, forcleansing me and living inside me to conform me to Christ. In hisname, Jesus of Nazareth, I pray. Amen.
http://www.heartlight.org/cgi-shl/todaysverse.cgi?day=20080425
Thursday, April 24, 2008
New home sales plunge to lowest level in 16 1/2 years
New home sales plunge to lowest level in 16 1/2 years, prices drop by largest amount in 38 years
WASHINGTON (AP) -- Sales of new homes plunged in March to the lowest level in 16 1/2 years as housing slumped further at the start of the spring sales season.
The median price of a new home in March, compared with a year ago, fell by the largest amount in nearly four decades.
The Commerce Department reported Thursday that sales of new homes dropped by 8.5 percent last month to a seasonally adjusted annual rate of 526,000 units, the slowest sales pace since October 1991.
The median price of a home sold in March dropped by 13.3 percent compared with March 2007, the biggest year-over-year price decline since a 14.6 percent plunge in July 1970.
The dismal news on new home sales followed earlier reports showing sales of existing homes fell by 2 percent in March. Housing, which boomed for five years, has been in a prolonged slump for the past two years with sales and home prices falling at especially sharp rates in formerly boom areas of the country.
For March, sales were down in all regions of the country, dropping the most in the Northeast, a decline of 19.4 percent. Sales fell by 12.9 percent in the West, 12.5 percent in the Midwest and 4.6 percent in the South.
In other economic news, orders to factories for big-ticket manufactured goods fell for a third straight month in March, the longest string of declines since the 2001 recession, while applications for unemployment benefits fell by 33,000 to 342,000.
The Commerce Department said demand for durable goods dropped by 0.3 percent last month, a worse-than-expected performance that underscored the problems manufacturers are facing from a severe economic slowdown. The last time orders fell for three consecutive months was from February to April of 2001, when the country was sliding into the last recession.
The weakness in manufacturing orders was led by a 4.6 percent drop in orders for autos, a sector hard hit by soaring gasoline prices, and the weakening economy, which have cut sharply into car sales. Orders in the category that includes home appliances fell by 6.6 percent. This industry has been hurt by the two-year slump in home sales.
President Bush said Tuesday that the economy was not in a recession but a period of slower growth. However, economists who believe the country has fallen into a recession pointed to the string of declines in manufacturing orders to support their view.
"The broad swath of data in the March (orders) report is indicative of a mixed set of conditions in a factory sector that is, overall, in a mild recession," said Cliff Waldman, economist for the Manufacturers Alliance/MAPI.
The Labor Department reported that claims for unemployment benefits fell by 33,000 last week to 342,000. Economists had been expecting claims to rise by 3,000. The four-week moving average for claims fell by 7,250 to 369,500.
Even with the improvements, analysts said the weak economy is still putting greater pressures on the labor market. The unemployment rate climbed to 5.1 percent in March as businesses laid off the largest number of workers in five years.
Economic growth slowed to a near-standstill at the end of last year as the economy was battered by the prolonged slump in housing and a severe credit crunch that has resulted in billions of dollars of losses at many of the nation's largest financial institutions and has made it harder for consumers and businesses to get loans.
Consumer sentiment, meanwhile, has plunged to recessionary lows as Americans have also watched gasoline soar to an average price above $3.50 per gallon nationally.
The 0.3 percent drop in orders for durable goods, items expected to last at least three years, followed even bigger declines of 0.9 percent in February and 4.4 percent in January.
Orders for all transportation products fell by 4.6 percent, reflecting the big drop in demand for autos. Orders for commercial aircraft actually rose by 5.5 percent while demand for defense aircraft surged by 29.4 percent. Many defense industries have seen big increases reflecting the wars in Iraq and Afghanistan.
A key category viewed as a proxy for business investment plans showed no increase in March after a big 2 percent drop in February. Businesses have cut back on plans to expand and modernize as the economy has softened.
SOURCE: www.yahoo.com Thursday April 24, 11:13 am ET By Martin Crutsinger, AP Economics Writer
WASHINGTON (AP) -- Sales of new homes plunged in March to the lowest level in 16 1/2 years as housing slumped further at the start of the spring sales season.
The median price of a new home in March, compared with a year ago, fell by the largest amount in nearly four decades.
The Commerce Department reported Thursday that sales of new homes dropped by 8.5 percent last month to a seasonally adjusted annual rate of 526,000 units, the slowest sales pace since October 1991.
The median price of a home sold in March dropped by 13.3 percent compared with March 2007, the biggest year-over-year price decline since a 14.6 percent plunge in July 1970.
The dismal news on new home sales followed earlier reports showing sales of existing homes fell by 2 percent in March. Housing, which boomed for five years, has been in a prolonged slump for the past two years with sales and home prices falling at especially sharp rates in formerly boom areas of the country.
For March, sales were down in all regions of the country, dropping the most in the Northeast, a decline of 19.4 percent. Sales fell by 12.9 percent in the West, 12.5 percent in the Midwest and 4.6 percent in the South.
In other economic news, orders to factories for big-ticket manufactured goods fell for a third straight month in March, the longest string of declines since the 2001 recession, while applications for unemployment benefits fell by 33,000 to 342,000.
The Commerce Department said demand for durable goods dropped by 0.3 percent last month, a worse-than-expected performance that underscored the problems manufacturers are facing from a severe economic slowdown. The last time orders fell for three consecutive months was from February to April of 2001, when the country was sliding into the last recession.
The weakness in manufacturing orders was led by a 4.6 percent drop in orders for autos, a sector hard hit by soaring gasoline prices, and the weakening economy, which have cut sharply into car sales. Orders in the category that includes home appliances fell by 6.6 percent. This industry has been hurt by the two-year slump in home sales.
President Bush said Tuesday that the economy was not in a recession but a period of slower growth. However, economists who believe the country has fallen into a recession pointed to the string of declines in manufacturing orders to support their view.
"The broad swath of data in the March (orders) report is indicative of a mixed set of conditions in a factory sector that is, overall, in a mild recession," said Cliff Waldman, economist for the Manufacturers Alliance/MAPI.
The Labor Department reported that claims for unemployment benefits fell by 33,000 last week to 342,000. Economists had been expecting claims to rise by 3,000. The four-week moving average for claims fell by 7,250 to 369,500.
Even with the improvements, analysts said the weak economy is still putting greater pressures on the labor market. The unemployment rate climbed to 5.1 percent in March as businesses laid off the largest number of workers in five years.
Economic growth slowed to a near-standstill at the end of last year as the economy was battered by the prolonged slump in housing and a severe credit crunch that has resulted in billions of dollars of losses at many of the nation's largest financial institutions and has made it harder for consumers and businesses to get loans.
Consumer sentiment, meanwhile, has plunged to recessionary lows as Americans have also watched gasoline soar to an average price above $3.50 per gallon nationally.
The 0.3 percent drop in orders for durable goods, items expected to last at least three years, followed even bigger declines of 0.9 percent in February and 4.4 percent in January.
Orders for all transportation products fell by 4.6 percent, reflecting the big drop in demand for autos. Orders for commercial aircraft actually rose by 5.5 percent while demand for defense aircraft surged by 29.4 percent. Many defense industries have seen big increases reflecting the wars in Iraq and Afghanistan.
A key category viewed as a proxy for business investment plans showed no increase in March after a big 2 percent drop in February. Businesses have cut back on plans to expand and modernize as the economy has softened.
SOURCE: www.yahoo.com Thursday April 24, 11:13 am ET By Martin Crutsinger, AP Economics Writer
Scripture for Today
April 24, 2008
VERSE: "Consider carefully what you hear," he continued. "With the measure you use, it will be measured to you -- and even more.Whoever has will be given more; whoever does not have, even what hehas will be taken from him." -- Mark 4:24-25 http://www.SearchGodsWord.org/desk/?query=Mark+4:24-25
THOUGHT: "O be careful little ears what you hear ... for the Father upabove is looking down in love, so be careful little ears what youhear." God doesn't want to just be heard aloud; he wants his Wordto enter our systems and change our lives. The more we receive theblessing of God's words, the more it should change us. If itdoesn't, the problem isn't with the message but with the listener!PRAYER: Please open my eyes, my ears, my heart, and my mind, dearFather, so that I can appropriate your message into my life. Blessme, please, dear Father, so that what I hear in your word is seenin my life. In Jesus' precious name I pray.
Amen.
http://www.heartlight.org/cgi-shl/todaysverse.cgi?day=20080424
VERSE: "Consider carefully what you hear," he continued. "With the measure you use, it will be measured to you -- and even more.Whoever has will be given more; whoever does not have, even what hehas will be taken from him." -- Mark 4:24-25 http://www.SearchGodsWord.org/desk/?query=Mark+4:24-25
THOUGHT: "O be careful little ears what you hear ... for the Father upabove is looking down in love, so be careful little ears what youhear." God doesn't want to just be heard aloud; he wants his Wordto enter our systems and change our lives. The more we receive theblessing of God's words, the more it should change us. If itdoesn't, the problem isn't with the message but with the listener!PRAYER: Please open my eyes, my ears, my heart, and my mind, dearFather, so that I can appropriate your message into my life. Blessme, please, dear Father, so that what I hear in your word is seenin my life. In Jesus' precious name I pray.
Amen.
http://www.heartlight.org/cgi-shl/todaysverse.cgi?day=20080424
Wednesday, April 2, 2008
HOUSTON PROPERTY SALES CONTINUE TO SLIDE IN FEBRUARY
Sixth consecutive monthly decline is tempered by notable increases in average and median single-family home prices
HOUSTON — (March 18, 2008) — Property sales across greater Houston slid for the sixth consecutive month in February, but the decline was not as steep as January’s. While February sales of single-family homes dipped, the prices of those homes rose, according to statistics released by the Houston Association of REALTORS(HAR).
Total property sales for February 2008 registered 5,266, which represents a 13.1 percent drop compared to February 2007; it’s an improvement over last month’s 17.2 percent fall. Properties sold during the month totaled just over $1 billion compared to $1.1 billion in sales one year earlier, a 7.9 percent decline. The average price of a single-family home rose 5.6 percent last month from February 2007 to $206,140, representing the biggest increase since last August. The median price of a single-family home increased 3.1 percent to $151,430.
“Houston continues to feel the ripple effects of the national mortgage crisis,” said Michael Levitin, HAR Chairman and principal of HTownRealty.com. “However, many area Realtors are actually reporting brisk sales, which supports our contention that real estate is local, meaning some parts of town are doing well and others not so well. For Sale signs have gone up in many neighborhoods in recent weeks and sales of luxury homes remain high, so we’re hopeful that the overall numbers will soon show signs of improvement. With interest rates at historic lows, pricing that’s affordable and a good selection of inventory, this is still an excellent time for home buyers to invest.”
February Monthly Market ComparisonAll listing categories combined, Houston’s overall housing market in February saw mixed results. Both average and median single-family home sales prices rose on a year-over-year basis while total property sales and total dollar volume fell.
The number of available homes (active listings) at the end of February was 51,308 properties, a 12.8 percent increase over February 2007. The figure was up 599 properties from January 2008, reflecting the sales slowdown, but only about half the increase observed between December 2007 and January 2008.
Month-end pending sales – those listings expected to close within the next 30 days – reached 4,323, which was down 10.1 percent from last year and signals another likely decline in sales next month, based on volatility in sales figures. The month’s inventory of single-family homes for February came in at 6.1 months, a slight increase from January’s 6.0-month figure. This compares to the February 2007 single-family homes inventory of 5.1 months.
Single-Family Homes UpdateThe average sales price for single-family homes was $206,140 in February, up 5.6 percent versus the same period last year when it was $195,148. The overall median price of single-family homes in February was $151,430 compared to the national single-family median price of $201,100, according to statistics released by the National Association of REALTORS®. These data continue to illustrate the higher value and lower cost of living found in the Houston market.
Additionally, total sales of single-family homes in Houston in February came in at 4,431, which was 10.2 percent lower than February 2007 but a slight improvement over last month’s 12 percent decline.
Improved year-over-year sales activity continued to be observed in Houston’s low- and high-end single-family home markets, with increases of 11.1 percent among homes priced below $80,000 and 11.0 percent among homes priced above $500,000.
HAR also reports existing home statistics for the single-family home segment of the real estate market. In February 2008, existing single-family home sales totaled 3,646, which was a 10.0 percent drop from February 2007. At $141,500, the median sales price for existing homes in the Houston area was up 1.8 percent compared to the same period last year. The average sales price of $190,553 for the month represented an increase of 5.0 percent from last year’s level.
The Days on Market statistic for February remained unchanged from 92 a month earlier but in excess of the 84 days recorded in February 2007.
Source: har.com
HOUSTON — (March 18, 2008) — Property sales across greater Houston slid for the sixth consecutive month in February, but the decline was not as steep as January’s. While February sales of single-family homes dipped, the prices of those homes rose, according to statistics released by the Houston Association of REALTORS(HAR).
Total property sales for February 2008 registered 5,266, which represents a 13.1 percent drop compared to February 2007; it’s an improvement over last month’s 17.2 percent fall. Properties sold during the month totaled just over $1 billion compared to $1.1 billion in sales one year earlier, a 7.9 percent decline. The average price of a single-family home rose 5.6 percent last month from February 2007 to $206,140, representing the biggest increase since last August. The median price of a single-family home increased 3.1 percent to $151,430.
“Houston continues to feel the ripple effects of the national mortgage crisis,” said Michael Levitin, HAR Chairman and principal of HTownRealty.com. “However, many area Realtors are actually reporting brisk sales, which supports our contention that real estate is local, meaning some parts of town are doing well and others not so well. For Sale signs have gone up in many neighborhoods in recent weeks and sales of luxury homes remain high, so we’re hopeful that the overall numbers will soon show signs of improvement. With interest rates at historic lows, pricing that’s affordable and a good selection of inventory, this is still an excellent time for home buyers to invest.”
February Monthly Market ComparisonAll listing categories combined, Houston’s overall housing market in February saw mixed results. Both average and median single-family home sales prices rose on a year-over-year basis while total property sales and total dollar volume fell.
The number of available homes (active listings) at the end of February was 51,308 properties, a 12.8 percent increase over February 2007. The figure was up 599 properties from January 2008, reflecting the sales slowdown, but only about half the increase observed between December 2007 and January 2008.
Month-end pending sales – those listings expected to close within the next 30 days – reached 4,323, which was down 10.1 percent from last year and signals another likely decline in sales next month, based on volatility in sales figures. The month’s inventory of single-family homes for February came in at 6.1 months, a slight increase from January’s 6.0-month figure. This compares to the February 2007 single-family homes inventory of 5.1 months.
Single-Family Homes UpdateThe average sales price for single-family homes was $206,140 in February, up 5.6 percent versus the same period last year when it was $195,148. The overall median price of single-family homes in February was $151,430 compared to the national single-family median price of $201,100, according to statistics released by the National Association of REALTORS®. These data continue to illustrate the higher value and lower cost of living found in the Houston market.
Additionally, total sales of single-family homes in Houston in February came in at 4,431, which was 10.2 percent lower than February 2007 but a slight improvement over last month’s 12 percent decline.
Improved year-over-year sales activity continued to be observed in Houston’s low- and high-end single-family home markets, with increases of 11.1 percent among homes priced below $80,000 and 11.0 percent among homes priced above $500,000.
HAR also reports existing home statistics for the single-family home segment of the real estate market. In February 2008, existing single-family home sales totaled 3,646, which was a 10.0 percent drop from February 2007. At $141,500, the median sales price for existing homes in the Houston area was up 1.8 percent compared to the same period last year. The average sales price of $190,553 for the month represented an increase of 5.0 percent from last year’s level.
The Days on Market statistic for February remained unchanged from 92 a month earlier but in excess of the 84 days recorded in February 2007.
Source: har.com
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