GLENN EZELLE

"New home sales plummet to record low" from CNNMoney.com

GLENN EZELLE — Wed, 23 Jun 2010 16:21:00 GMT

New home sales plummet to record low

By Hibah Yousuf, staff reporterJune 23, 2010: 11:25 AM ET

NEW YORK (CNNMoney.com) -- New home sales plummeted to a record low in May, the first month following the expiration of the homebuyer tax credit. This snapped a two-month streak of gains.

New home sales declined 32.7% to a seasonally adjusted annual rate of 300,000 last month, down from an downwardly revised 446,000 in April, the Commerce Department reported Wednesday. Sales year-over-year fell 18.3%.

This is the slowest sales pace since the Commerce Department began tracking data in 1963. The prior record was set in September 1981, when new homes sold at an annual rate of 338,000.

"We expected a slowdown, but the extent of this decline was a surprise," said Anika Khan, an economist at Wells Fargo. The figure was even worse than her relatively pessimistic forecast of an annual rate of 380,000 in May.

A consensus of economists surveyed by Briefing.com had expected May sales to slide to an annual rate of 430,000.

"Clearly, the lack of a tax credit had a lot to do with it, and it's going to be a bit of a bumpy road ahead as we get a few more months of payback," Khan said.

Home sales had surged in March and April as homebuyers scrambled to sign contracts ahead of the April 30 deadline for the tax credit. First-time homebuyers qualified for a tax credit up to $8,000, while repeat buyers could get as much as a $6,500 break.

Homebuyers have until June 30 to close deals, but the Senate may vote to push that deadline back to Sept. 30.

Khan expects home sales to remain depressed through the third quarter as home construction continues to contract and lending standards remain tight. But, she said, sales should pick up slightly in the fourth quarter.

Although, she added, we are still years away from a normal level of new home sales -- an annual rate between 800,000 and 900,000.

"A full housing recovery is contingent on employment," Khan said. "When we see the unemployment rate abate, and some growth in salaries and incomes, we'll get some sustainable momentum in the housing market."

A real estate industry report released earlier this week showed that existing home sales, based closed sales rather than signed contracts, slipped slightly last month but remained elevated.

Price and inventory: The government report showed that the median price of new homes sold in May was $200,900, down less than 1% from April but a 9.6% drop from May 2009.

An estimated 213,000 new homes were for sale at the end of May, the lowest inventory level in more than 40 years.

Still, at the current sales pace, the government expects it will take 8.5 months to sell through that inventory, up from 5.8 months in April. Six months of inventory is considered normal market conditions.

Sales by region: Sales fell the most in the West, where they decreased by more than 50%; the Northwest saw sales declined by about a third. Sales in the South and Midwest declined by about 25%.

cnnad_createAd("351648","http://ads.cnn.com/html.ng/site=cnn_money&cnn_money_pagetype=story_sync&cnn_money_position=475x215_bot&cnn_money_rollup=real_estate&cnn_money_section=quigo¶ms.styles=fs","215","475");

This Memorial Day, Fix Those Gutters from Realtor.org/Realtor Magazine

GLENN EZELLE — Wed, 05 May 2010 05:10:00 GMT

This Memorial Day, Fix Those Gutters
The flurry of Memorial Day sales at home-improvement retailers offers the perfect occasion to remind sellers to pick up the materials they need to fix any issues, like gutter problems, which could deter buyers.

Buyers are drawn like magnets to well-maintained homes. A sagging gutter here, a gutter with plants sprouting out of it there, and the sellers’ first impression is nothing but a missed opportunity.

For tips you can share with sellers on repairing common gutter problems, head to the REALTOR^® Content Resource, the new tool powered by HouseLogic, where your NAR membership entitles you to download free homeownership content in your consumer Web site, blog, or e-newsletter. Here are just a few of the tips available now at REALTOR^® Content Resource:

• Clear clogged gutters: Sellers can tackle the most common problem of all if they’re comfortable on a ladder, don’t mind getting wet and dirty, and don’t have an extremely tall house. It’s a matter of clearing the muck from gutters and then flushing them with a garden hose to make sure the water drains properly. To really impress potential buyers, sellers can even have gutter covers installed.

• Straighten sagging gutters: Replacing faulty or missing hangers, which secure gutters to a home, is an inexpensive fix. Hangers can deteriorate over time or they can be spaced too far apart to support the gutters’ weight. Sellers can pick up hangers for $10 or less and fasteners for about $1 each.

• Plug leaks: Sealing leaky gutter joints requires only caulking with a $5 tube of gutter sealant.

Demonstrate your knowledge as an expert on home value by using these tips to educate sellers about these relatively easy — but visually critical — fixes to gutter glitches. If sellers have no gutter worries, they’re bound to be able to benefit from tips on saving energy on water heaters, inspecting and maintaining their garage, and improving curb appeal and safety with outdoor lighting, all of which are also available now at REALTOR^® Content Resource.

The REALTOR® Content Resource, powered by HouseLogic, is an exclusive, free benefit for NAR members. HouseLogic is the National Association of REALTORS’^® no-topic-left-uncovered consumer Web site geared to helping home owners make smart decisions to maintain, protect, and increase the value of their home.

Mortgage Insurer Reports Housing Is Recovering from Realtor.org/Realtor Magazine

GLENN EZELLE — Wed, 05 May 2010 04:41:00 GMT

Mortgage Insurer Reports Housing Is Recovering
Mortgage insurer PMI released a report Monday indicating that the housing market is recovering and predicting that prices are likely to rise in many markets over the next two years. PMI considerations include increasing affordability, generally improving mortgage credit quality, decreasing foreclosure rates, and a drop in excess housing supply.

Key findings include:

Of the nation’s 384 MSAs (metropolitan statistical areas), 356 had a declining risk score, with only one showing a slight increase and the remainder unchanged.
The number of MSAs in the riskiest category fell by 26.4 percent during the fourth quarter.
The number of MSAs in the least-risky category increased 26.5 percent.

Large MSAs with the most improved risk scores are:

Columbus, Ohio
Pittsburgh
Memphis
Charlotte, N.C.
St. Louis
San Antonio, Texas
Kansas City, Mo.
Nashville, Tenn.
Chicago-Naperville
Indianapolis

Source: PMI Mortgage Insurance Co.

Pending Home Sales on an Upswing from Realtor.org/Realtor Magazine

GLENN EZELLE — Wed, 05 May 2010 04:36:00 GMT

Pending Home Sales on an Upswing
Pending home sales increased again in March, affirming that a surge of home sales is unfolding for the spring home buying season, according to the National Association of REALTORS®.

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in March, rose 5.3 percent to 102.9 from 97.7 in February, and is 21.1 percent above March 2009 when it was 85.0; this follows an 8.3 percent increase in February. The data reflects contracts and not closings, which usually occur with a lag time of one or two months.

Lawrence Yun, NAR chief economist, said favorable affordability conditions have been working with the tax credit. “Clearly the home buyer tax credit has helped stabilize the market. In the months immediately following the expiration of the tax credit, we expect measurably lower sales,” he said. “Later in the second half of the year, and into 2011, home sales will likely become self-sustaining if the economy can add jobs at a respectable pace, and from a return of buyer demand as they see home values stabilizing.”

Regional Numbers

The PHSI in the Northeast declined 3.3 percent to 75.1 in March, but remains 27.2 percent higher than March 2009.
In the Midwest the index increased 1.2 percent to 98.9 and is 18.5 percent above a year ago.
Pending home sales in the South jumped 12.7 percent to an index of 121.2, which is 28.3 percent higher than March 2009.
In the West the index rose 1.9 percent to 99.9 and is 8.8 percent above a year ago.

“Another encouraging sign is the improvement in the availability for jumbo and second-home mortgages,” Yun said. “As bank balance sheets strengthen, it is just a matter of time before lending of non-government-backed mortgages steadily opens up.”

Source: NAR

REAL ESTATE TAKES OFF IN THE SOUTH OF THE UNITED STATES

GLENN EZELLE — Mon, 03 May 2010 19:29:00 GMT

Home Sales Surge in Southern Cities

By THE ASSOCIATED PRESS

Published: April 22, 2010

Filed at 2:31 p.m. ET

MIAMI (AP) -- March home sales climbed nearly 19 percent in the South as buyers scrambled to claim federal tax credits and take advantage of affordable prices.

There were 160,000 sales of previously occupied homes last month in the South, which also saw prices increase more than 5 percent to $154,800, the National Association of Realtors said Thursday. The last time prices rose in the South on a year-over-year basis was June 2008.

Nationally, sales of previously occupied homes rose nearly 20 percent from March last year to a non-seasonally adjusted mark of 427,000. The median home price was flat at $170,700.

Low interest rates and the looming expiration of two tax credits at the end of April attracted more house hunters. First-time buyers are eligible for a tax credit of up to $8,000, and current homeowners who choose to buy and relocate can get up to $6,500.

When the government incentives end some experts think the housing market's recovery will stumble. But others argue that there are enough potential buyers to keep the market active.

Foreclosure sales, high unemployment and tight lending standards remain obstacles to a steady recovery. Foreclosures continued to stream into some Southern markets.

''Foreclosures are selling quickly, especially in the lower price ranges that are attractive to first-time home buyers,'' said Lawrence Yun, chief economist for the Realtors' group.

In the South, sales increased in 18 of 19 Southern metro areas covered by the Associated Press-Re/Max Monthly Housing Report, also released Thursday. Sales were nearly flat in New Orleans, which is still feeling the effects of Hurricane Katrina.

Median sales prices rose in 8 of the 19 Southern cities covered by the AP-Re/Max report, which analyzes sales transactions in the metropolitan statistical areas recorded by all real estate agents, regardless of company affiliation.

The Texas metro areas of Dallas-Fort Worth and Houston, two markets which didn't see much of a pricing bubble during the housing boom, had the largest median sales price increases of the Southern cities covered by the AP-Re/Max report.

Prices rose nearly 6 percent in Dallas-Fort Worth to $148,00, and existing home sales climbed 6 percent compared with last March. In Houston, March sales increased 10 percent, and prices increased 4 percent to $153,000.

Real estate agent Mike Bowman said the tax credits, low mortgage rates and prices that remain affordable are creating a sales environment in Dallas-Fort Worth that's ''as good as you are going to get.''

''When people are optimistic about everything, then they are going to spend money, and that can only help the economy,'' said Bowman, president of Century 21 Mike Bowman Inc. in Grapevine, Texas.

While Congress seems reticent to extend the tax credits, Bowman said he wants lawmakers to consider it.

''That would give us enough momentum to carry on through the rest of the year and into 2011,'' Bowman said.

In Florida, home sales in Orlando jumped 42 percent, the highest year-over-year sales increase among the Southern cities covered by the AP-Re/Max report.

Foreclosures and overbuilding, which created high inventory, have pushed prices down in the central Florida metropolis. The median sales price in Orlando was just $111,000, down 18 percent from March 2009, the AP-Re/Max report.

Condos and houses are selling for less than half of what they were going for several years ago, said Orlando-area real estate agent Dana Hall. Houses located near Walt Disney World that once sold for $300,000 are now selling for around $90,000 in some areas, Hall said.

Meanwhile, more international buyers took advantage of favorable currency exchange rates to snare low-priced properties.

One of Hall's clients from the United Kingdom bought a two-bedroom, condo with a balcony for about $80,000 in Celebration, Fla.

The condo, a bank-owned foreclosure that was previously purchased for about $200,000, received multiple offers.

''Buyers now are getting steals,'' said Hall, owner of Century 21 Premium Properties in Celebration.

"New-home sales rise fastest in 47 years" from CNNMoney.com

GLENN EZELLE — Fri, 23 Apr 2010 21:44:00 GMT

New-home sales rise fastest in 47 years

By Chavon Sutton, staff reporterApril 23, 2010: 3:36 PM ET

NEW YORK (CNNMoney.com) -- New home sales improved in March at the fastest single-month rate in 47 years, according to a government report released Friday, as buyers snatched up properties ahead of the tax credit that's set to expire.

New-home sales rose 26.9% to a seasonally adjusted annual rate of 411,000 last month, compared to an upwardly revised annual rate of 324,000 in February, the Census Bureau said. The gain snapped a four-month streak of declines.

A consensus of economists surveyed by Briefing.com expected March sales to rise to an annual rate of 330,000.

The March sales were the strongest since last July, and the percentage gain was the biggest on a month-over-month basis since a 31% gain in March 1963.

New-home sales spiked in every region of the United States. The South saw the biggest jump in new home sales, up 43.5%, while the Northeast region saw sales climb 35.7%. The West and Midwest regions both saw single-digit percentage growth, with the West up 6% and the Midwest up 4%.

The Census Bureau data followed a report from the National Association of Realtors on Thursday that showed existing home sales soared nearly 7% in March, as new homebuyers raced to buy up properties before a tax credit expires on April 30.

"It's obvious that homebuyers are rushing in to take advantage of the tax credit that's set to expire," said Robert Dye, senior economist for PNC Financial Services.

In November, the government extended and expanded an $8,000 tax credit, which also allows some repeat buyers to qualify for a $6,500 credit. Buyers have until April 30 to qualify.

Dye expects to see continued strength in April's data before "tailing off" through the summer as the group of buyers who rushed in are "all spent out."

The Census Bureau estimated that 228,000 new homes hit the market in March. At the current sales rate, it would take 6.7 months to sell through that inventory, down sharply from an estimated 9.2 months of inventory in February.

Although new-home sales in March exceeded analyst expectations, sales are still trending near record lows, and prices are still under pressure due to oversupply.

"It's a very good sign to see [the March inventory] number down," said Dye. "But this needs to tighten up more to see upward pressure on prices."

The average price of a new home was $258,600, according to the Census Bureau. That was virtually flat compared to a year earlier, and 12% below average prices in 2008.

A precarious jobs market continues to threaten the housing market. Dye expects the April unemployment rate to dip to a still-high 9.6% from March's 9.7% when data are announced May 7.

"Firming house prices and an improving jobs market will make recovery felt on Main Street as well as Wall Street," said Dye. "We're headed in the right direction."

Single Story For Sale in Pearl District

GLENN EZELLE — Thu, 22 Apr 2010 22:17:00 GMT

Prime Pearl District Gregory Penthouse

• 1,451 sq. ft., 2 bath, 1 bdrm single story - MLS® $599,000. - Price Reduction

Pearl District, Portland (Multnomah County) - Stunning one-of-a-kind Gregory penthouse in the heart of the Pearl District offers elegant finishes and true loft living at its finest. This immaculate pied-a-terre penthouse has an open and versatile floor plan and features a gourmet kitchen with maple cabinetry, granite island with eating bar and exceptional stainless appliances including SubZero refrigerator, 2 Thermador convection ovens and Asko dishwasher. French doors open out to two private terraces to enjoy impressive West Hills and city views. The luxurious master bathroom features marble counters, glass and tile shower and extra large soaking tub. This beautiful penthouse offers many amenities including fireplace, hardwoods, tile, artistic lighting, designer paint, automatic window coverings, 2 secure parking spaces and 2 secure storage spaces. Prime Pearl District location steps to the streetcar, shopping and restaurants. 1451 sq ft with one bedroom and 1 1/2 bathrooms, central vacuum, air conditioning and natural gas. This penthouse is a must see!

Property information

2 Story For Sale in South End

GLENN EZELLE — Thu, 22 Apr 2010 22:09:00 GMT

Developer Opportunity Possible 8-9 Lots

• 2,357 sq. ft., 3 bath, 4 bdrm 2 story "Ranch" - MLS® $620,000 - R-10 CAN BE SUBDIVIDED

South End, Oregon City - 2.24 acre development opportunity in the South End neighborhood of Oregon City. Surrounded by newer $300-$400,000 homes on three sides with greenspace across the street this property zoned R10 offers the potential for 8-9 new homes. Perfect for any and all builder developers to either land bank or build now. Utilities are available at the street. Buyer to do own due diligence. Property currently offers a 2 story ranch style home with 2357 square feet, 4 bedrooms and 2 1/2 bathrooms.

Property information

LOOKING FOR A DEAL TRY THESE

GLENN EZELLE — Sat, 17 Apr 2010 02:33:00 GMT

Economic indicators in these metros have gone from bad to worse, with no sign of recovery.

Miami boasts a popular South Beach club scene, Art Deco Architecture, and perhaps the best Cuban food in the country. But residents don't have much else to celebrate.

More than three years after the economy started its downward slide, the Miami metro area, like a handful of Sun Belt cities, still hasn't begun to recover. Median home prices in Miami have fallen 38% since its market peaked in the second quarter of 2007; the city's 11% unemployment rate is above the national average and has grown more than most of the 40 cities we surveyed.

List: 10 U.S. Cities In Free Fall

Cities in the "Sand States" of Florida, California, Arizona and Nevada, where overbuilding was rampant, are also in trouble, claiming nine of the top 10 spots in our list of cities in free fall. In Las Vegas, Riverside, Calif., and Phoenix, median home prices have fallen 50%, 44% and 37% from their respective peaks. Jobs are vanishing. Though country-wide, employers added 162,00 jobs last month, Riverside gained 13% fewer jobs in February 2010 (the latest numbers available by metro) than it did the same month three years earlier. Tampa, Fla., saw a 10% drop, and Los Angeles added 9% fewer jobs over the same time period.

These cities are also slow to absorb their glut of unsold foreclosed homes, keeping recovery at bay.

"These were highly speculative housing markets," says Jonathan Miller, president of Miller Samuel, a Manhattan-based real estate appraisal firm. "In the markets that have unloaded a lot of foreclosed housing stock there's still a lot more coming."

Behind the Numbers

To find the country's cities in free fall, we rated its 40 largest Metropolitan Statistical Areas (MSA) on six metrics.

We ranked each MSA on the percent its median home price has fallen since its individual peak, using data provided by Local Market Monitor, a housing market data tracker. To get an estimate for the number of new homes being built, we used data from the U.S. Census Bureau, which tracks how many building permits are issued. Roughly 98% of these permits become new home starts. We looked at the percent change in new building permits between February 2007 and February 2010.

We also wanted to know how many people were moving in and out of these metros, since a growing population buoys a local economy. We used the Census Bureau's most recent population estimates to rank each metro on its net population change between July 2006 and July 2009. To judge each city's productivity we also ranked each metro on its per capita gross domestic product in 2008, the most recent year available, using data from Moody's Economy.com. Finally, we ranked the metros on the percent change in unemployment between January 2007 and January 2010 and the number of jobs they added between February 2007 and February 2010, with data from the Bureau of Labor Statistics. We averaged these rankings to arrive at a final score.

Sunshine State Stagnancy

Florida cities dominate our list, with Tampa, Orlando and Jacksonville joining Miami. Florida's real estate market keeps falling even as some herald the start of a rebound. The state's comparatively sluggish foreclosure process keeps those homes from getting easily flushed out of the market. Because every foreclosure must be approved by a judge, the procedure takes a minimum of five months to complete.

"In states with complex foreclosure laws, the recovery is clearly being delayed," says Mike Simonsen, CEO of Altos Research, a Mountain View, Calif.-based real estate research firm, who adds that lengthy foreclosures may be driving away real estate investors in these cities.

A Trouble Spot in the Northeast

Picturesque Providence, R.I., is the only New England metro on our list. Economically, it's struggling far more than other cities in the region. Although Providence saw a slower three-year increase in unemployment than some other major metros, it still has a high unemployment rate, at 14%. The city also added 9% fewer jobs in 2010 than three years earlier. Workers are getting the message and leaving town. Providence is the only city in our top 10 to see a net loss in population.

Grim News for the Golden State

California cities are struggling too. Riverside, Los Angeles and Sacramento are suffering because of the knocks they took after their inflated housing markets began to plummet. Unemployment in the City of Angels has nearly tripled in three years, to 12%. Riverside's unemployment has also ballooned, to 15%. Meanwhile Sacramento saw a 75% drop in new building permits. These are troubling signs for Cali metros, but not surprising. The end of the state's home-price climb triggered more than just a housing slump.

"In California, so many jobs were concentrated in construction," says Michael Fratantoni, vice president of research at the Mortgage Bankers Association, the professional association for real estate financiers. "Jobs building single family homes wound up not being sustainable, and there were a lot of job losses."

The long-term consequences of the housing crash in these cities are still playing out, and new factors that complicate a recovery keep cropping up.

"Places like Phoenix and Riverside may take even longer to recover because people might just pick up and leave to go to places doing better," says Fratantoni. "It may make more sense to leave, rather than wait for jobs to return."

Top 5 Cities in a Free Fall

1. Miami-Fort Lauderdale-Pompano Beach, FL
Net Population Change, 2006-2009: 1.47%
Per Capita Gross Domestic Product: $42,645.52
Change in New Building Permits, February 2007-February 2010: -77.46%
Change in Unemployment, January 2007-January 2010: 202.70%
Change in New Jobs Added, February 2007 - February 2010: -9.68%
Change in Median Home Price from Market Peak: -38%

2. Tampa-Clearwater, FL
Net Population Change, 2006-2009: 2.33%
Per Capita Gross Domestic Product: $42,562.92
Change in New Building Permits, February 2007-February 2010: -44.18%
Change in Unemployment, January 2007-January 2010: 235.90%
Change in New Jobs Added, February 2007 - February 2010: -9.87%
Change in Median Home Price from Market Peak: -32%

3. Riverside-San Bernardino-Ontario, Calif.
Net Population Change, 2006-2009: 4.40%
Per Capita Gross Domestic Product: $32,403.49
Change in New Building Permits, February 2007-February 2010: -65.69%
Change in Unemployment, January 2007-January 2010: 177.78%
Change in New Jobs Added, February 2007 - February 2010: -12.94%
Change in Median Home Price from Market Peak: -44%

4. Jacksonville, Fl.
Net Population Change, 2006-2009: 3.83%
Per Capita Gross Domestic Product: $16,035.65
Change in New Building Permits, February 2007-February 2010: -66.09%
Change in Unemployment, January 2007-January 2010: 227.03%
Change in New Jobs Added, February 2007 - February 2010: -7.74%
Change in Median Home Price from Market Peak: -23%

5. Phoenix-Mesa-Scottsdale, AZ
Net Population Change, 2006-2009: 7.85%
Per Capita Gross Domestic Product: $40,870.16
Change in New Building Permits, February 2007-February 2010: -83.61%
Change in Unemployment, January 2007-January 2010: 148.65%
Change in New Jobs Added, February 2007 - February 2010: -10.01%
Change in Median Home Price from Market Peak: -37%

Click here to see the full list of Ten U.S. Cities In Free Fall

Showing page 1 of 1

Single Story For Sale in Reynolds School District

GLENN EZELLE — Mon, 12 Apr 2010 01:48:00 GMT

CHARMING 3 BED 2 BATH RANCH

• 1,092 sq. ft., 2 bath, 3 bdrm single story "RANCH" - MLS® $189,900 - GREAT HOME FOR THE MONEY

Reynolds School District, Northeast Portland - CLOVER CREST NEIGHBORHOOD OFF HALSEY AND 192ND CORNER LOT 3 BED 2 BATH 1092 SQ FT RANCH WITH FIRPLACE AND NEW OVEN, SINK, DISHWASHER, CARPET, PAINT, PED LAV AND BEAUTIFUL FENCED YARD WITH 2 CAR GARAGE, ALARM, COVERED PATIO, AND WATER FEATURE

Property information

FIRST TIME HOME BUYER CREDIT EXPIRES APRIL 30

GLENN EZELLE — Thu, 01 Apr 2010 14:29:00 GMT

IF ARE STILL ON THE FENCE ABOUT BUYING A HOME NOW IS THE TIME. THE MARKET IS RECOVERING AND THE HOME PRICES HAVE BEGUN TO STABLIZE. Now is the time to buy before the prices start to go up again. Dont miss the chance to receive that first time home buyer credit of $8000 or the repeat home buyer credit of $6500. There are certain qualifications so check the federal guidlines to make sure you qualify.

First-Time Homebuyer Credit: Answers

Lot / Land For Sale in Skyline Bvld

GLENN EZELLE — Mon, 22 Mar 2010 18:23:00 GMT

Skyline Blvd Opportunity

• lot / land - MLS® $399,000

Skyline Bvld, Portland - Amazing opportunity to design and build your own home on this beautifully treed lot with partial valley view. This west facing .55 acre lot has a gentle slope to sloped topography and offers an inviting landscape for a variety of home styles. Seller has information on sand filtration and lot site. Utilities are available. Buyer to do own due diligence.

Property information

"Mortgage Rates Improve, Stocks Fall" from Mortgage Time

GLENN EZELLE — Sun, 31 Jan 2010 22:28:00 GMT

Mortgage Rates Improve, Stocks Fall

While the economic data released this week had little impact, mortgage rates were heavily influenced by two big stories. One was an announcement that China will take steps to slow its economic growth and the other was President Obama's proposed new restrictions on the activities of financial institutions. Both measures are expected to lead to slower economic growth in the US, which hurt the stock market but helped fixed income markets. As a result, mortgage rates ended a little lower.

During the week, China released a report showing that its Gross Domestic Product (GDP) grew at an 8.7% pace in 2009. Rapid growth generally leads to higher inflation. In an effort to slow its economy and prevent inflation, China announced that it is going to curb bank lending. China currently has the third largest economy and is responsible for a significant percentage of global economic growth, so the effects of a slowdown in China will be felt around the world. In the US, President Obama proposed to limit the size and activities of large banks to reduce the risks to the financial system as a whole. If passed by Congress, this too would lead to slower growth for many large US financial services firms. The potential for slower economic growth and the resulting reduction in inflationary pressures was favorable for mortgage rates.

To build capital and reduce risk, the FHA announced that it will raise insurance rates and tighten credit score requirements. The major changes include increasing upfront premiums from 1.75% to 2.25%, reducing the maximum seller contribution from 6% to 3%, and increasing the level of FICO scores from 500 to 580 below which a down payment of 10% is required. At this point, the expected timing of the upfront premium increase will be in the spring, and the other changes will take place over the summer.

"Ten Inexpensive Ways to Wow Buyers" from Realtor Magazine Online

GLENN EZELLE — Thu, 28 Jan 2010 17:49:00 GMT

Ten Inexpensive Ways to Wow Buyers
Now is the time for home owners contemplating a spring sale to spruce up their properties in anticipation of what Mike Larson of Weiss Research calls a potentially vibrant home-selling season. "If you have been beating your head against a wall, this is going to feel a lot better,” he jokes.

Here are 10 cheap ways to make a property more attractive to shoppers.

Improve first impressions. Touch up the paint on the front door and other areas that buyers see first.
Clean up the landscaping. Trim the hedges and trees and plant some annuals in the flowerbeds.
Paint the interior. A coat of light yellow or cream with contrasting white woodwork looks fresh and clean.
Refurbish the floors. Buff the hardwoods. Install new carpets – or at least get them professionally cleaned.
Take care of the big problems. If the house needs a roof or the front stoop is crumbling, get them fixed.
Buy warranties. Putting appliances under warranty gives homebuyers a secure feeling.
Improve energy efficiency. New windows or improved insulation tell a potential buyer the seller is on top of things plus they come with tax benefits.
Replace light fixtures. Updated fixtures, especially at the entrance way and in the foyer, create a good first impression.
Buy a stove. Home owners whose kitchen isn’t top of the line can jazz it up for a few hundred dollars by buying a new stove, which gives the room a fresh feel.
Tidy up the bathrooms. Get rid of mildew, replace caulking and replace stained sinks.

Source: U.S. News & World Report, Luke Mullins (01/21/2010)

"10 Cities Where It's Smarter to Buy" from Realtor Magazine Online

GLENN EZELLE — Sun, 24 Jan 2010 01:52:00 GMT

10 Cities Where It's Smarter to Buy
For people who want to own a home, the premium to buy—the spread between what they’d spend to rent and what they’d pay for a mortgage—is much lower than the 15-year average in many cities.

To determine what cities are smart buys, Forbes magazine computed the premium and also identified locales where economists predict home prices will go up the most over the next five years.

Here are the top 10 cities the magazine chose as the best places to buy right now.

Boston-Cambridge-Quincy, Mass.
Charlotte-Gastonia-Concord, N.C.-S.C.
Chicago-Naperville-Joliet, Ill.-Ind.-Wis.
Cincinnati-Middletown, Ohio-Ky.-Ind.
Denver-Aurora-Broomfield, Colo
Minneapolis-St. Paul-Bloomington, Minn.-Wis.
Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md.
Portland-Vancouver-Beaverton, Ore.-Wash.
San Francisco-Oakland-Fremont, Calif.
Washington-Arlington-Alexandria, D.C.-Va.-Md.-W.V.

Source: Forbes, Francesca Levy (01/21/2010)