Area Fire Works and Festivities
Fort Worth
Jul. 4, 2009 - Fort Worth's Fourth
Come celebrate Fort Worth's Fourth, Saturday, July 4, 2009, with an evening of free music and family fun along the Trinity River behind LaGrave Field. Jet Skis, watermelon, trolley rides, water wars and Battle of the Bands hosted by 95.9 The Ranch Radio. Watch the Cats play until fireworks start around 9:30 p.m.. It all starts at 5:30 p.m. Saturday, July 4. For more information visit www.streamsandvalleys.org or call 817 926-0006
Grand Prairie
July 3 & 4, 2009 - Lone Stars & Stripes Fireworks Celebration. Enjoy two full days of exciting live Thoroughbred racing and fun activities for the whole family including pony rides, a petting zoo, bounce houses, games, clowns, and more followed by our 20-minute fireworks spectacular choreographed to music. Plus, enjoy live music by Incognito on Friday, and Maiden Texas on Saturday in our Courtyard of Champions from 5p.m. - 11:30 p.m. Gates open early at 3 p.m. each day and the first live race begins at 5 p.m. Details may be found at www.lonestarpark.com
Bedford
Jul 4, noon-11 p.m. Concert, food, family activities, a parade, and fireworks will be at the Bedford Boys Ranch at 2801 Forest Ridge Drive in Bedford. Bring lawn chairs, blankets, and coolers. No alcohol, please. Admission is free, but there is no parking at the Bedford Boys Ranch, except for those with handicap signs or plates. Park at Pennington Field at 1501 Central Drive in Bedford and catch the shuttle for $3 per person.
North Richland Hills
Jul 4, 9:30 p.m. Twenty minutes of fireworks will take off at the North Richland Hills Village Center, 6351 Boulevard 26 in Richland Hills at the intersection of Highway 26 and Highway 183 inside Loop 820.
Irving
Jul 4, 5 p.m.-10 p.m. The Irving Symphony Orchestra will put on a concert starting at 8:30 p.m. Food and beverages will be available. No coolers or alcohol permitted. Admission is free. The concert and fireworks will be at Williams Square Plaza (5215 North O'Connor Boulevard) in Las Colinas in Irving.
Plano
Jul 4, 9:30 p.m. The city of Plano will have a fireworks show at the Oak Point Park and Nature Preserve at 2801 Spring Creek Parkway. Some food and beverages will be available for purchase. Free parking will be at Collin County Community College and First United Methodist Church of Plano. Radio station KLAK 97.5 will have a simulcast during the fireworks show.
Frisco
Jun 27-28. Pizza Hut Park in Frisco plays host to Celebrate Freedom 2008. For two days, three stages will be full of Christian rock groups and speakers. VeggieTales characters, inflatable rides and slides, jump rope demonstrations, dance teams, and cheerleaders are just some of the entertainment available. Admission is free, but parking is $10-15. Pizza Hut Park is at the intersection of Dallas Tollway and Main Street in Frisco, near the intersection of Dallas Tollway and Eldorado Parkway.
Granbury
Annual 4th of July Celebration - Hometown America
Start Date: July 4, 2009 8:00 am
Location: Granbury Historic Downtown Square
Contact Name: Chamber of Commerce Contact Number: 817-573-1622 Website: www.granburychamber.com
Description: Art & Craft Booths, Hometown Parade, Tom Ward Memorial Decorated Bike Contest, Live Entertainment at the Granbury Square Plaza, rockin' Rods Car Show, Old Fashioned Games at Shanley Park, Bulls and Broncs Rodeo at the Reunion Grounds. Talley Amusements Carnival Rides and Fireworks over Lake Granbury.
Thursday, July 2, 2009
Monday, June 15, 2009
Going, Going, Gone - The Key to Peace of Mind before Bidding on Properties
Going, Going, Gone - The Key to Peace of Mind before Bidding on Properties
By Paige Tepping
RISMEDIA, June 16, 2009-Buying a home is one of the most significant decisions, as well as one of the biggest investments, a home buyer will ever make. With home prices down around the country, mortgage rates at record-level lows, an $8,000 tax credit for first-time home buyers and a surge in home auctions, buyers must be more educated than ever in going through the home-buying process. Home buyers are looking for peace of mind right now, and Pillar To Post’s home inspections give prospective buyers just that.
According to the Associated Press, home auctions have surged 47% since 2003, which opens the door to homeowners interested in buying a home at a bargain price.
“There is a huge inventory of homes on the market right now, which is great for buyers, but it should still be ‘buyer beware,’” says Trevor Welby-Solomon, Pillar To Post’s vice president, Technical Training, Support and Development. Home buyers must be cautious, because homes sold at auction are sold ‘as is;’ therefore, professional home inspections are a crucial element in the bidding process.
With the economic climate we are experiencing today, it is easy for buyers to say that money is tight and they don’t want to spend the $350-$450 it costs to get a home inspection, but Welby-Solomon says the exact opposite is true.
“Since credit is tight and home values have dropped, it is almost impossible to go back to the lender or bank and further define a line of credit to fix items within the home once you move in,” he says. Home inspections focus on the structural element or systems of the home and look closely at items regarding the health and safety of the occupants. “In addition to checking the major structural items within the home, home inspections also cover more common elements, such as the condition of the roof covering, leaks in the basement and the major mechanical systems (heating, cooling, electrical and plumbing).
“Home inspections take away the emotional aspect of the transaction as well as provide prospective buyers with an objective, third-party opinion of the building,” says Welby-Solomon, and are especially important for buyers looking to purchase a home through an auction.
“Home inspections are used to better educate buyers about their potential purchase and whether the price of the home is actually the final cost,” he says. While it may be appealing for buyers to bid low on a home, it is a good idea to have a sense of what your final expenditure will be once the home is yours.
“Since joining Pillar To Post in 1994, home buyers and sellers’ attitudes toward home inspections have changed completely,” says Welby-Solomon. “There is a much greater awareness of the value of a home inspection, and a lot of this has come about as younger buyers are coming into the marketplace.” As younger buyers are more research- and information-oriented, they are looking for more value and want to be more educated and informed in making decisions, he says.
While there are numerous good deals to be found in today’s market, home inspections give buyers peace of mind before actually buying the property.
“Don’t be afraid to ask if you may bring a third party with you to do a walk-through of the home before the auction starts,” says Welby-Solomon. “Home inspections allow prospective buyers to not walk blindly into a home auction and end up with a money trap that you have to keep throwing money into after purchasing.”
For more information, please visit www.pillartopost.com.
By Paige Tepping
RISMEDIA, June 16, 2009-Buying a home is one of the most significant decisions, as well as one of the biggest investments, a home buyer will ever make. With home prices down around the country, mortgage rates at record-level lows, an $8,000 tax credit for first-time home buyers and a surge in home auctions, buyers must be more educated than ever in going through the home-buying process. Home buyers are looking for peace of mind right now, and Pillar To Post’s home inspections give prospective buyers just that.
According to the Associated Press, home auctions have surged 47% since 2003, which opens the door to homeowners interested in buying a home at a bargain price.
“There is a huge inventory of homes on the market right now, which is great for buyers, but it should still be ‘buyer beware,’” says Trevor Welby-Solomon, Pillar To Post’s vice president, Technical Training, Support and Development. Home buyers must be cautious, because homes sold at auction are sold ‘as is;’ therefore, professional home inspections are a crucial element in the bidding process.
With the economic climate we are experiencing today, it is easy for buyers to say that money is tight and they don’t want to spend the $350-$450 it costs to get a home inspection, but Welby-Solomon says the exact opposite is true.
“Since credit is tight and home values have dropped, it is almost impossible to go back to the lender or bank and further define a line of credit to fix items within the home once you move in,” he says. Home inspections focus on the structural element or systems of the home and look closely at items regarding the health and safety of the occupants. “In addition to checking the major structural items within the home, home inspections also cover more common elements, such as the condition of the roof covering, leaks in the basement and the major mechanical systems (heating, cooling, electrical and plumbing).
“Home inspections take away the emotional aspect of the transaction as well as provide prospective buyers with an objective, third-party opinion of the building,” says Welby-Solomon, and are especially important for buyers looking to purchase a home through an auction.
“Home inspections are used to better educate buyers about their potential purchase and whether the price of the home is actually the final cost,” he says. While it may be appealing for buyers to bid low on a home, it is a good idea to have a sense of what your final expenditure will be once the home is yours.
“Since joining Pillar To Post in 1994, home buyers and sellers’ attitudes toward home inspections have changed completely,” says Welby-Solomon. “There is a much greater awareness of the value of a home inspection, and a lot of this has come about as younger buyers are coming into the marketplace.” As younger buyers are more research- and information-oriented, they are looking for more value and want to be more educated and informed in making decisions, he says.
While there are numerous good deals to be found in today’s market, home inspections give buyers peace of mind before actually buying the property.
“Don’t be afraid to ask if you may bring a third party with you to do a walk-through of the home before the auction starts,” says Welby-Solomon. “Home inspections allow prospective buyers to not walk blindly into a home auction and end up with a money trap that you have to keep throwing money into after purchasing.”
For more information, please visit www.pillartopost.com.
Friday, June 5, 2009
We've Moved!
We've Moved!
Texas Sold Team Realty, LLC has moved to a new office in Keller, Texas. Come by and visit us! Keep checking in for our GRAND OPENING RIBBON CUTTING CEREMONY in July.
New Address:
424 Keller Parkway
Keller, Texas 76248
Texas Sold Team Realty, LLC has moved to a new office in Keller, Texas. Come by and visit us! Keep checking in for our GRAND OPENING RIBBON CUTTING CEREMONY in July.
New Address:
424 Keller Parkway
Keller, Texas 76248
Can You Get a Loan Today?
Can You Get a Loan Today?
Changes in the real estate and mortgage markets have prompted many, including many in the media, to wonder, "Can you get a loan today?" For an answer to this important question, YOU Magazine turned to Barry Habib, an expert in the mortgage-backed securities market. Chairman of Mortgage Success Source and founder of Mortgage Market Guide, Mr. Habib has managed a hedge fund, authored a stock advisory newsletter, owned an insurance agency, and has been an avid real estate investor for many years.
Habib says that, yes, you can get a mortgage in today's market, but you have to understand that lenders have returned to a pre-2000 mindset – a kind of "common-sense lending" that seeks long-term success versus short-term profits. There's plenty of money available, says Habib, but your mortgage must make sense in today's terms, not the looser standards permitted by lenders in 2000 and 2001.
How Did We Get Here?
In 2000 and 2001, real estate was hot – make that white hot. According to the S&P/Case-Shiller Home Price Composite 10 Index, an index that follows home prices, values increased 21.5% from the years 1990-1999. During the first two years of this decade alone, home prices increased 23.6% for the same index. This resulted in a period of wildly loose lending guidelines that would ultimately fuel the subprime mortgage collapse in 2008.
In retrospect, it's easy to see, and even understand, the mistakes that were made during this unusual period of growth. Rapidly escalating home prices not only eased economic and personal financial woes, they invited opportunity and risk whose rewards, while hard to resist, couldn't possibly be sustained at such a high level. Nonetheless, increasing equity created flexibility that benefitted buyers and sellers alike – as long as property values continued to ascend.
During this time, borrowers with no jobs, no down payments, and poor credit histories could easily obtain financing. A host of exotic mortgage products flooded the market. And even if a borrower got into trouble, there was a multitude of options to help him or her climb out of the hole, including refinancing or even selling the property. A lot of people made a lot of money during this time.
But, as the real estate market began to turn and the economy began to suffer, home values slowed and then ground to a halt, and the true risk in the market was exposed. No longer supported by skyrocketing home values, borrowers had fewer options, lending guidelines tightened, adjustable rates adjusted, resulting in a crash in the market that is only now just beginning to turn.
What Does This Mean to Borrowers Today?
Simply put, home lending has returned to what insiders call a "full-doc world." This means lenders need proof, documented evidence that a borrower is creditworthy and likely to repay the loan. This creditworthiness is based on the four tenets of lending: the borrower's ability to pay, willingness to pay, equity in the transaction, and the property itself.
Ability to Pay
This is the documentation portion of the equation. In determining one's ability to repay a loan, it is now common for a lender to ask for recent paystubs, W-2s, and possibly tax returns in the case of a salaried employee. For self-employed borrowers and those earning commissions, tax returns for the two most recent years and a profit and loss statement for the current calendar year will likely be required. While certain exceptions may be granted, potential borrowers can further increase their chances of securing a mortgage by keeping their debt-to-income level below 45%.
Willingness to Pay
Repercussions of the credit crisis have made FICO scores more important than ever to lenders. In order to obtain the best interest rate and have a broader selection of loan programs from which to choose, potential borrowers should strive to keep their FICO score above 720.
Borrowers whose scores fall below 720 where the loan will be sold to Fannie Mae and Freddie Mac can expect risk-based pricing, which could result in either higher costs or higher rates. So, while it is possible to get a loan with scores as low as 620, programs other than Fannie Mae or Freddie Mac are probably the best path for a borrower with a lower score to take.
Equity in the Transaction
With the exception of mortgage programs guaranteed by the USDA and VA, no-down-payment loans have pretty much evaporated on a national level. Today it is expected that borrowers put a minimum of 3.5% down for an FHA loan and 5%-10% down for agency loans sold to Fannie Mae or Freddie Mac.
If someone is strapped for cash, however, it is still possible in the purchase contract to negotiate with the seller to pay a percentage of the closing costs, as long as it's within the program's limitations and the property appraises highly enough for this action to be permitted.
With the exception of the President's Home Stability Plan, it is no longer possible to refinance a loan without equity in the property. However, under this plan, millions of homeowners are expected to be able to take advantage of being able to refinance at a loan-to-value of up to 105% of the appraised value.
Cash-out refinancing has also been tightened, compared to just a few years ago. While pulling equity out of a home is still possible, the costs to do so have become more expensive for homes with a higher loan-to-value. Depending on the program, cash-out transactions have generally been limited to a maximum of 85% of the home's appraised value.
The Property
Home appraisals are also being more scrutinized today to ensure the value of the home is both fair and realistic for lender and borrower alike. On May 1st, new legislation (Home Value Code of Conduct or HVCC) placed a barrier between loan originators and appraisers for loans sold to Fannie Mae and Freddie Mac (legislation does not affect mortgages guaranteed by the FHA, USDA or VA.)
For those loans impacted by HVCC, all parties involved should be prepared for potential delays. If value conflicts occur, sellers, buyers, homeowners, and real estate agents must be prepared to provide information where needed.
In locations of the country where property values have been in significant decline, additional documentation may be required by the appraiser to help the lender justify the appraised value.
In Summary
Yes, getting a mortgage may be more difficult than it was a few years ago, but don't assume that you can't get one.
Reports suggest that over $2.7 trillion in loans will be originated in 2009 – that's over $1 trillion more than 2008. Contact the professional who supplied you with your copy of YOU Magazine. With interest rates at or near all time lows, lower home prices, and the $8,000 tax credit for first-time buyers, it's worth the time and effort to find out if you can benefit from common-sense lending in today's real estate market.
Changes in the real estate and mortgage markets have prompted many, including many in the media, to wonder, "Can you get a loan today?" For an answer to this important question, YOU Magazine turned to Barry Habib, an expert in the mortgage-backed securities market. Chairman of Mortgage Success Source and founder of Mortgage Market Guide, Mr. Habib has managed a hedge fund, authored a stock advisory newsletter, owned an insurance agency, and has been an avid real estate investor for many years.
Habib says that, yes, you can get a mortgage in today's market, but you have to understand that lenders have returned to a pre-2000 mindset – a kind of "common-sense lending" that seeks long-term success versus short-term profits. There's plenty of money available, says Habib, but your mortgage must make sense in today's terms, not the looser standards permitted by lenders in 2000 and 2001.
How Did We Get Here?
In 2000 and 2001, real estate was hot – make that white hot. According to the S&P/Case-Shiller Home Price Composite 10 Index, an index that follows home prices, values increased 21.5% from the years 1990-1999. During the first two years of this decade alone, home prices increased 23.6% for the same index. This resulted in a period of wildly loose lending guidelines that would ultimately fuel the subprime mortgage collapse in 2008.
In retrospect, it's easy to see, and even understand, the mistakes that were made during this unusual period of growth. Rapidly escalating home prices not only eased economic and personal financial woes, they invited opportunity and risk whose rewards, while hard to resist, couldn't possibly be sustained at such a high level. Nonetheless, increasing equity created flexibility that benefitted buyers and sellers alike – as long as property values continued to ascend.
During this time, borrowers with no jobs, no down payments, and poor credit histories could easily obtain financing. A host of exotic mortgage products flooded the market. And even if a borrower got into trouble, there was a multitude of options to help him or her climb out of the hole, including refinancing or even selling the property. A lot of people made a lot of money during this time.
But, as the real estate market began to turn and the economy began to suffer, home values slowed and then ground to a halt, and the true risk in the market was exposed. No longer supported by skyrocketing home values, borrowers had fewer options, lending guidelines tightened, adjustable rates adjusted, resulting in a crash in the market that is only now just beginning to turn.
What Does This Mean to Borrowers Today?
Simply put, home lending has returned to what insiders call a "full-doc world." This means lenders need proof, documented evidence that a borrower is creditworthy and likely to repay the loan. This creditworthiness is based on the four tenets of lending: the borrower's ability to pay, willingness to pay, equity in the transaction, and the property itself.
Ability to Pay
This is the documentation portion of the equation. In determining one's ability to repay a loan, it is now common for a lender to ask for recent paystubs, W-2s, and possibly tax returns in the case of a salaried employee. For self-employed borrowers and those earning commissions, tax returns for the two most recent years and a profit and loss statement for the current calendar year will likely be required. While certain exceptions may be granted, potential borrowers can further increase their chances of securing a mortgage by keeping their debt-to-income level below 45%.
Willingness to Pay
Repercussions of the credit crisis have made FICO scores more important than ever to lenders. In order to obtain the best interest rate and have a broader selection of loan programs from which to choose, potential borrowers should strive to keep their FICO score above 720.
Borrowers whose scores fall below 720 where the loan will be sold to Fannie Mae and Freddie Mac can expect risk-based pricing, which could result in either higher costs or higher rates. So, while it is possible to get a loan with scores as low as 620, programs other than Fannie Mae or Freddie Mac are probably the best path for a borrower with a lower score to take.
Equity in the Transaction
With the exception of mortgage programs guaranteed by the USDA and VA, no-down-payment loans have pretty much evaporated on a national level. Today it is expected that borrowers put a minimum of 3.5% down for an FHA loan and 5%-10% down for agency loans sold to Fannie Mae or Freddie Mac.
If someone is strapped for cash, however, it is still possible in the purchase contract to negotiate with the seller to pay a percentage of the closing costs, as long as it's within the program's limitations and the property appraises highly enough for this action to be permitted.
With the exception of the President's Home Stability Plan, it is no longer possible to refinance a loan without equity in the property. However, under this plan, millions of homeowners are expected to be able to take advantage of being able to refinance at a loan-to-value of up to 105% of the appraised value.
Cash-out refinancing has also been tightened, compared to just a few years ago. While pulling equity out of a home is still possible, the costs to do so have become more expensive for homes with a higher loan-to-value. Depending on the program, cash-out transactions have generally been limited to a maximum of 85% of the home's appraised value.
The Property
Home appraisals are also being more scrutinized today to ensure the value of the home is both fair and realistic for lender and borrower alike. On May 1st, new legislation (Home Value Code of Conduct or HVCC) placed a barrier between loan originators and appraisers for loans sold to Fannie Mae and Freddie Mac (legislation does not affect mortgages guaranteed by the FHA, USDA or VA.)
For those loans impacted by HVCC, all parties involved should be prepared for potential delays. If value conflicts occur, sellers, buyers, homeowners, and real estate agents must be prepared to provide information where needed.
In locations of the country where property values have been in significant decline, additional documentation may be required by the appraiser to help the lender justify the appraised value.
In Summary
Yes, getting a mortgage may be more difficult than it was a few years ago, but don't assume that you can't get one.
Reports suggest that over $2.7 trillion in loans will be originated in 2009 – that's over $1 trillion more than 2008. Contact the professional who supplied you with your copy of YOU Magazine. With interest rates at or near all time lows, lower home prices, and the $8,000 tax credit for first-time buyers, it's worth the time and effort to find out if you can benefit from common-sense lending in today's real estate market.
Thursday, June 4, 2009
Pending Home Sales Up for Three Months in a Row
Pending Home Sales Up for Three Months in a Row
RISMEDIA, June 2, 2009-Record low mortgage interest rates boosted pending home sales for the third consecutive month, with some benefit now from the first-time buyer tax credit, according to the National Association of Realtors®.
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in April, rose 6.7% to 90.3 from a reading of 84.6 in March, and is 3.2% above April 2008 when it was 87.5.
Lawrence Yun, NAR chief economist, said buyers are responding to very favorable market conditions. “Housing affordability conditions have been at historic highs, but now the $8,000 first-time buyer tax credit is beginning to impact the market,” he said. “Since first-time buyers must finalize their purchase by November 30 to get the credit, we expect greater activity in the months ahead, and that should spark more sales by repeat buyers.”
The Pending Home Sales Index in the Northeast shot up 32.6% to 78.9 in April and is 0.8% above a year ago. In the Midwest the index rose 9.8% to 90.4 and is 11.1% above April 2008. The index in the South slipped 0.2% to 93.0 in April but is 3.5% higher than a year ago. In the West the index rose 1.8% to 94.8 but is 2.9% below April 2008.
NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said there are numerous buyer assistance programs around the country. “Some states are offering bridge loans that allow first-time buyers to use the tax credit for downpayment and closing costs, but there are many other local government and nonprofit programs available to buyers, depending on location,” he said.
“Just last week, HUD announced that qualifying buyers can use the tax credit for closing costs on FHA loans, to buy down the interest rate or make a larger downpayment. Buyers who are wondering about their options should contact a Realtor®, who can advise consumers on the housing assistance programs and resources available in a given area.”
NAR’s Housing Affordability Index is in record territory. The affordability index rose to 174.8 in April from an upwardly revised 171.9 in March, and was the second highest monthly reading on record after peaking at 176.9 in January of this year. The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income; tracking began in 1970.
A median-income family, earning $60,900, could afford a home costing $296,800 in April with a 20% downpayment, assuming 25% of gross income is devoted to mortgage principal and interest. Affordability conditions for first-time buyers with the same income and small downpayments are roughly 80% of that amount. The affordable price was well above the median existing single-family home price in April, which was $169,800.
Yun cautions that the reporting sample for pending home sales is smaller than that of existing-home sales, so it is subject to greater variability. “In addition, the relationship between contracts on pending home sales and closings on existing-home sales is taking longer than in the past for several reasons,” he said. “Mortgage processing time has increased, it is taking many months to close on those homes requiring short sales with lender approval, and some sales are falling through at the last moment.”
The total number of existing-home sales is expected to improve but with dramatic local market variation in the timing of recovery. “The market has already bottomed in some areas, but this is an unusual housing cycle with some areas improving rapidly while others languish or decline,” Yun said.
For more information, visit http://www.realtor.org.
Read more: "Pending Home Sales Up for Three Months in a Row | RISMedia" - http://rismedia.com/2009-06-02/pending-home-sales-up-for-three-months-in-a-row/#ixzz0HUUwhaAo&A
RISMEDIA, June 2, 2009-Record low mortgage interest rates boosted pending home sales for the third consecutive month, with some benefit now from the first-time buyer tax credit, according to the National Association of Realtors®.
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in April, rose 6.7% to 90.3 from a reading of 84.6 in March, and is 3.2% above April 2008 when it was 87.5.
Lawrence Yun, NAR chief economist, said buyers are responding to very favorable market conditions. “Housing affordability conditions have been at historic highs, but now the $8,000 first-time buyer tax credit is beginning to impact the market,” he said. “Since first-time buyers must finalize their purchase by November 30 to get the credit, we expect greater activity in the months ahead, and that should spark more sales by repeat buyers.”
The Pending Home Sales Index in the Northeast shot up 32.6% to 78.9 in April and is 0.8% above a year ago. In the Midwest the index rose 9.8% to 90.4 and is 11.1% above April 2008. The index in the South slipped 0.2% to 93.0 in April but is 3.5% higher than a year ago. In the West the index rose 1.8% to 94.8 but is 2.9% below April 2008.
NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said there are numerous buyer assistance programs around the country. “Some states are offering bridge loans that allow first-time buyers to use the tax credit for downpayment and closing costs, but there are many other local government and nonprofit programs available to buyers, depending on location,” he said.
“Just last week, HUD announced that qualifying buyers can use the tax credit for closing costs on FHA loans, to buy down the interest rate or make a larger downpayment. Buyers who are wondering about their options should contact a Realtor®, who can advise consumers on the housing assistance programs and resources available in a given area.”
NAR’s Housing Affordability Index is in record territory. The affordability index rose to 174.8 in April from an upwardly revised 171.9 in March, and was the second highest monthly reading on record after peaking at 176.9 in January of this year. The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income; tracking began in 1970.
A median-income family, earning $60,900, could afford a home costing $296,800 in April with a 20% downpayment, assuming 25% of gross income is devoted to mortgage principal and interest. Affordability conditions for first-time buyers with the same income and small downpayments are roughly 80% of that amount. The affordable price was well above the median existing single-family home price in April, which was $169,800.
Yun cautions that the reporting sample for pending home sales is smaller than that of existing-home sales, so it is subject to greater variability. “In addition, the relationship between contracts on pending home sales and closings on existing-home sales is taking longer than in the past for several reasons,” he said. “Mortgage processing time has increased, it is taking many months to close on those homes requiring short sales with lender approval, and some sales are falling through at the last moment.”
The total number of existing-home sales is expected to improve but with dramatic local market variation in the timing of recovery. “The market has already bottomed in some areas, but this is an unusual housing cycle with some areas improving rapidly while others languish or decline,” Yun said.
For more information, visit http://www.realtor.org.
Read more: "Pending Home Sales Up for Three Months in a Row | RISMedia" - http://rismedia.com/2009-06-02/pending-home-sales-up-for-three-months-in-a-row/#ixzz0HUUwhaAo&A
Tuesday, May 26, 2009
From the Midwest to the Pacific, job seekers are heading to Texas
From the Midwest to the Pacific, job seekers are heading to Texas
'If you had to ride out this downturn, there is no better place than Texas. The declines here have been nothing compared to other states.’
By STEVE CAMPBELL
sfcampbell@star-telegram.com
Across the nation, unemployment is sky-high, the housing market is sucking wind and recessionary fears have frozen Americans in place.
Just don’t tell that to a stream of new residents who are "voting with their feet" that Texas is the safest place to ride out the storm and the place to be when the economy recovers.
Even in the midst of a recession, economists, demographers and relocation experts believe the Lone Star State is on the cusp of becoming The New California.
Or maybe it already is.
For people seeking economic opportunity, Texas is becoming what California has been since the Great Depression, says Los Angeles urbanist and author Joel Kotkin. Texas recently "ran the table" in a recent list of "Best Cities for Jobs" prepared by Kotkin for New Geography and Forbes. Austin, Houston, San Antonio, Fort Worth and Dallas were ranked as the top five large metro areas in the country to find a job. If that weren’t enough to get the moving van loaded, McAllen and Odessa top the mid-sized and small city categories, respectively. Among 333 metropolitan areas, Texas has a remarkable 20 in the top 100.
Relocation surveys show that Texas remains a top destination for people leaving other states. Its automobile registrations continue to climb, and the Texas housing market has avoided the double-digit declines other fast-growing states have seen. While the unemployment rate has risen in Texas, it’s nowhere near as high as most of the country, underscoring the state’s economic resiliency even as the downturn deals out its lumps.
Kotkin, a professor at Chapman University in Orange, Calif., who analyzed U.S. Labor Department statistics for his report, says Texas’ dominance at the top of the jobs list is unprecedented.
"Part of it is a function of the economic collapse of Florida, Phoenix and California. The collapse is still important in Texas, but Texas has had more balanced growth and that’s more sustainable," he said in a telephone interview while navigating an L.A. freeway.
"Part is the nature of Texas: People don’t move there for climate and scenery," Kotkin said. "They move to Texas for jobs and affordable housing. People make economic decisions to go to these places. They don’t go for perfect weather where you can surf one day and ski the next."
Selling "everything but the deer head" and leaving the Detroit area for Texas was simple math for Rodger Benton after Hewlett Packard laid him off.
"It was pretty much a no-brainer to make the move," he said. "The unemployment rate in Michigan is really high. Things are really tough up there. There’s just more opportunity here."
Jobs beget growth
Steve Murdock, who was the Texas state demographer for 25 years and director of the U.S. Census Bureau during the last year of the George W. Bush administration, says jobs attract new residents, and Texas has been driving fast for several years.
"Very few of us say, 'I think I’ll go there because there are not as many " he said. jobs and they pay less,’
Murdock, now a sociology professor at Rice University, says Texas’ growth in the last decade has "been simply phenomenal."
According to the latest Census figures released in March, Dallas-Fort Worth-Arlington added 146,500 people between July 2007 and July 2008 — more than any metropolitan area in the nation. Houston-Sugar Land-Baytown added 130,000 for the No. 2 spot, and Texas had 10 of the top 25 counties with the biggest numerical gains.
Texas has lost jobs in the recession, with the unemployment rate at 6.7 percent in March, the highest mark since January 2004, according to the Texas Workforce Commission.
But that still looks good compared with Michigan (12.6 percent unemployment), Oregon (12.1), South Carolina (11.4), California (11.2) or North Carolina (10.4).
"If you had to ride out this downturn, there is no better place than Texas. The declines here have been nothing compared to other states," said Richard Froeshle, deputy director of Texas Workforce Commission.
Moving out
As the economy has soured, many people are moving to Texas for a new start.
In 2008 and the first quarter of 2009, 14.3 percent of the people leaving the once Golden State were bound for the Lone Star State, according to Relocation.com, which tracks moving trends. Other states with sizable outflows to Texas included Florida (7.9 percent), Illinois (4.7), Michigan (4.6) and New York (4.3).
Another indicator of moving patterns is U-Haul truck rentals.
To rent a 26-foot moving truck today from Los Angeles to Fort Worth would cost $2,141. Renting that truck for a Fort Worth-to-L.A. run would only cost $557. Nearly the same prices apply for moves from Detroit to Fort Worth and vice versa.
That means far more people are moving to Texas than going in the other direction, a U-Haul employee in Fort Worth said.
Julie and William Taylor of Flower Mound made that jump just before California’s housing bubble burst.
Fed up with William’s three-hour round-trip commute and the state’s declining economy, they unloaded their home in Santa Clarita in 2006 after it had doubled 1/2 years."We thought, 'We better do it now while we can.’ I had in value in 3 never even come to Texas, but we knew there were jobs here," said Julie, a stay-at-home mom with two small children. "We knew it was going to be easier for my husband to find a job [in the transportation industry]. And it was true. We feel so blessed to have gotten out when we did."
'The place to go’
Tory Gattis, who runs a software company and writes Houston Strategies, an urban issues blog, is convinced that Texas will be the "focal point" of the nation’s next historic migration trend.
"During the Dust Bowl, during the Great Depression, California was the place to go. Texas is the place to go now," Gattis said. "Sure, we are clearly losing some jobs but people are still moving here. I can see it anecdotally in the license plates around town. I see a lot of Michigan plates, California license plates, I see them from all over."
That’s playing out across the state, according to the Texas Department of Transportation, which tracks motor vehicle registrations.
In 2000, there were 17,962,300 registered vehicles in Texas and that number soared more than 3 million to 21,185,173 by the end of last year, the department reports.
"Vehicle registrations continue to climb by the hundreds of thousands in Texas despite a decline in vehicle sales," department spokeswoman Kim Sue Lia Perkes said. "This may be one indicator that Texas continues to experience a steady stream of transplants from other states despite the national economic downturn."
John McLendon sees the economy where all that rubber meets the road.
No Vacancy signs were the norm at his Oak Creek RV Park near Weatherford for years as migratory workers flocked to the drilling fields of the Barnett Shale, he said. Most of them cleared out late last year, when natural gas prices cratered and companies mothballed rigs.
Now he’s seeing a different trend. People from states hit hard by the recession are coming here in search of jobs. "I’ve seen some from Florida, Utah, Colorado, Montana — they’re from everywhere," McLendon said.
Jo Ann Royer, director of relocations for Williams & Trew real estate, say inquiries about moving to Fort Worth are coming from across the country.
"We’re seeing the whole spectrum of medical industry employees. They are coming from everywhere because the hospitals here are expanding," Royer said. "We’ve had, believe it or not in this economy, banking personnel coming in because there is a new bank on every corner in Fort Worth."
'Zone of sanity’
Jim Gaines, a research economist at Texas A&M University, says that the recession has slowed overall growth but that there are good reasons why people continue to come to Texas.
"Why do people move? Generally, jobs," Gaines said. "Right now, Texas will probably be the only state in the Union that reports more jobs than the year before — by a total of close to 154,000 [in 2008]."Those numbers will be reduced this year. But if you are an entrepreneur or want to start a business, this is the best place to do it because of the pro-business attitude of the state."
Eventually, when distressed housing markets across the country stabilize, Gaines predicts that skittish homeowners will be weighing their options. In those places, "as soon as you can finally sell, you’re going to get the hell out of Dodge," Gaines said.
Jason Saving, a senior economist at the Federal Reserve Bank of Dallas, also believes that Texas has some "fundamental advantages" that are spurring growth, even in a recession.
First is a "very favorable business climate," and second is affordable real estate.
"These things make the state attractive to businesses and residents alike," Saving said. "I think that’s why, if you look at the migration data within the U.S., that you see so many people moving from other states to Texas."
Gattis says Texas’ cost of living is a key to its attractiveness.
"It’s not everything," he said, "but when you have more discretionary income you can buy a better house, a better car, you can spend it at restaurants. That’s income that leads to a better quality of life. "
Texas State Demographer Karl Eschbach says in tough times, people "move to where they think they can survive."
"You might move back home where you have family and a support network, or you move to where you can get a job," Eschbach said. "If I’d left Texas and then lost my job, I would be back in a quarter-second."
Mark Lowther moved fast when that happened to him.
The Texas native was a marketing manager in Seattle for Washington Mutual, the failed savings and loan which was bought by JPMorgan Chase.
His job ended May 1, and he and his wife, Michelle, a disaster contingency consultant, "jumped" at the chance to come to Fort Worth so he could join Southwest Bank as a senior vice president and marketing director.
"The real estate market here is stronger and more affordable," Mather said as movers were unloading the couple’s belongings. "You can buy a comparable house here for close to half the price what you can get on the West Coast."
Kotkin, the L.A. author, says Texas is benefitting by being in what he calls "the zone of sanity," a swath of the nation’s midsection where housing prices stayed stable.
The twin lures of jobs and affordable housing are important to young professionals planning to raise a family or start a business, he said.
That’s what Lance Marshall and Elizabeth Peirce have in mind. The 25-year-old high school sweethearts from North Texas moved to Chicago in 2005 to pursue careers after graduating from college.
Marshall managed a specialty wine store and Peirce worked for a nonprofit and then turned to waiting tables before working as a media coordinator for a fashion boutique.
"I was underemployed and I never stopped looking for a job," Peirce said. "In Chicago, the competition was incredibly fierce and the economy wasn’t very good and then it really declined last year."
When they got engaged, coming back home looked like the safe bet. In February, they moved in with her parents in Grapevine, which has "been fun and mortifying at the same time," she said.
She’s now working as a sales consultant at a bridal shop. It’s not the job in communications that she wants, but it’s a start, and she’s still hunting. Marshall is working for a wine distribution company and dreaming of owning his own business.
"I can see a lot of optimistic growth here" he said. "I want to be a 50-year-in-the-same-house kind of guy, and when I was thinking of the places to do it — it was D-FW."
Open for business
Texas’ business climate of low taxes and a low regulatory burden draws companies and workers, Saving said.
"There is something inherently entrepreneurial about Texas. It’s the nature of the state from its formation, Texas was built by people who were looking to better themselves, and that has continued ever since," he said.
Kotkin says tight business regulation is hurting California. But not Texas. "Whether you are GOP or Democrat, you can’t imagine Texas becoming anti-business," he said.
Seguin Mayor Betty Ann Matthies says that mind-set is part of the reason Caterpillar is building a 850,000-square-feet diesel-engine plant that will employ 1,400 in her town of 25,091 east of San Antonio.
"I think that Texas is known right now for trying to encourage industry to come here," Matthies said.
The city and state’s "willingness to help," along with a location with easy access to interstates and major ports were key factors in Caterpillar’s decision, spokeswoman Kate Kenny said.
"It was a good decision all around, the location, the people, the timing," she said.
An economic refuge
No one argues that the recession hasn’t bruised Texas, too.
But for people like Benton from Clinton Township, Mich., Texas feels like an economic safe zone by comparison.
When Benton, a 45-year-old staff sergeant in the Army National Guard, was notified that he was losing his job as a computer systems operator, he also learned he was going to be redeployed.
He was at Fort Hood in Texas when he was on active duty in the 1990s and he liked it. "People are friendly here," he said.
So he leapt at a chance to be stationed in San Antonio and work as a liaison in the Wounded Warrior program helping injured soldiers. "This is rewarding. I don’t plan on going back to Michigan," he said.
The auto industry’s woes stretch from Michigan into Dayton, Ohio, where Dione Kennedy, 48, was the president and CEO of a theater association. Since January, she’s held the same title at Bass Hall in Fort Worth.
"Things are very tough in Ohio," she said "Dayton is a big GM town, and a lot of industry was built around that and it has been hit hard."
And the real estate market here seemed healthy by comparison.
"Prices for homes in Ohio have been rapidly dropping and in the communities here there was no apparent downturn," Kennedy said.
She and husband Daniel, a stay-at-home dad for their young daughter, have noticed another difference.
"It seems like every time my husband talks to someone in Dayton, it’s another concern about someone about to lose a job or has a lost a job. We don’t hear that here."
The U.S. Census Bureau recently reported that because of the recession, Americans are moving at some of the lowest rates in 50 years.
But Saving, the Fed economist, believes people "will vote with their feet" and keep heading to Texas.
"Moving is costly, and it’s a hassle. It’s not something people want to do . and looking long-term, I think it’s . . unless they see a better opportunity clear that Texas is a favorable place to be from an economic point of view."
'If you had to ride out this downturn, there is no better place than Texas. The declines here have been nothing compared to other states.’
By STEVE CAMPBELL
sfcampbell@star-telegram.com
Across the nation, unemployment is sky-high, the housing market is sucking wind and recessionary fears have frozen Americans in place.
Just don’t tell that to a stream of new residents who are "voting with their feet" that Texas is the safest place to ride out the storm and the place to be when the economy recovers.
Even in the midst of a recession, economists, demographers and relocation experts believe the Lone Star State is on the cusp of becoming The New California.
Or maybe it already is.
For people seeking economic opportunity, Texas is becoming what California has been since the Great Depression, says Los Angeles urbanist and author Joel Kotkin. Texas recently "ran the table" in a recent list of "Best Cities for Jobs" prepared by Kotkin for New Geography and Forbes. Austin, Houston, San Antonio, Fort Worth and Dallas were ranked as the top five large metro areas in the country to find a job. If that weren’t enough to get the moving van loaded, McAllen and Odessa top the mid-sized and small city categories, respectively. Among 333 metropolitan areas, Texas has a remarkable 20 in the top 100.
Relocation surveys show that Texas remains a top destination for people leaving other states. Its automobile registrations continue to climb, and the Texas housing market has avoided the double-digit declines other fast-growing states have seen. While the unemployment rate has risen in Texas, it’s nowhere near as high as most of the country, underscoring the state’s economic resiliency even as the downturn deals out its lumps.
Kotkin, a professor at Chapman University in Orange, Calif., who analyzed U.S. Labor Department statistics for his report, says Texas’ dominance at the top of the jobs list is unprecedented.
"Part of it is a function of the economic collapse of Florida, Phoenix and California. The collapse is still important in Texas, but Texas has had more balanced growth and that’s more sustainable," he said in a telephone interview while navigating an L.A. freeway.
"Part is the nature of Texas: People don’t move there for climate and scenery," Kotkin said. "They move to Texas for jobs and affordable housing. People make economic decisions to go to these places. They don’t go for perfect weather where you can surf one day and ski the next."
Selling "everything but the deer head" and leaving the Detroit area for Texas was simple math for Rodger Benton after Hewlett Packard laid him off.
"It was pretty much a no-brainer to make the move," he said. "The unemployment rate in Michigan is really high. Things are really tough up there. There’s just more opportunity here."
Jobs beget growth
Steve Murdock, who was the Texas state demographer for 25 years and director of the U.S. Census Bureau during the last year of the George W. Bush administration, says jobs attract new residents, and Texas has been driving fast for several years.
"Very few of us say, 'I think I’ll go there because there are not as many " he said. jobs and they pay less,’
Murdock, now a sociology professor at Rice University, says Texas’ growth in the last decade has "been simply phenomenal."
According to the latest Census figures released in March, Dallas-Fort Worth-Arlington added 146,500 people between July 2007 and July 2008 — more than any metropolitan area in the nation. Houston-Sugar Land-Baytown added 130,000 for the No. 2 spot, and Texas had 10 of the top 25 counties with the biggest numerical gains.
Texas has lost jobs in the recession, with the unemployment rate at 6.7 percent in March, the highest mark since January 2004, according to the Texas Workforce Commission.
But that still looks good compared with Michigan (12.6 percent unemployment), Oregon (12.1), South Carolina (11.4), California (11.2) or North Carolina (10.4).
"If you had to ride out this downturn, there is no better place than Texas. The declines here have been nothing compared to other states," said Richard Froeshle, deputy director of Texas Workforce Commission.
Moving out
As the economy has soured, many people are moving to Texas for a new start.
In 2008 and the first quarter of 2009, 14.3 percent of the people leaving the once Golden State were bound for the Lone Star State, according to Relocation.com, which tracks moving trends. Other states with sizable outflows to Texas included Florida (7.9 percent), Illinois (4.7), Michigan (4.6) and New York (4.3).
Another indicator of moving patterns is U-Haul truck rentals.
To rent a 26-foot moving truck today from Los Angeles to Fort Worth would cost $2,141. Renting that truck for a Fort Worth-to-L.A. run would only cost $557. Nearly the same prices apply for moves from Detroit to Fort Worth and vice versa.
That means far more people are moving to Texas than going in the other direction, a U-Haul employee in Fort Worth said.
Julie and William Taylor of Flower Mound made that jump just before California’s housing bubble burst.
Fed up with William’s three-hour round-trip commute and the state’s declining economy, they unloaded their home in Santa Clarita in 2006 after it had doubled 1/2 years."We thought, 'We better do it now while we can.’ I had in value in 3 never even come to Texas, but we knew there were jobs here," said Julie, a stay-at-home mom with two small children. "We knew it was going to be easier for my husband to find a job [in the transportation industry]. And it was true. We feel so blessed to have gotten out when we did."
'The place to go’
Tory Gattis, who runs a software company and writes Houston Strategies, an urban issues blog, is convinced that Texas will be the "focal point" of the nation’s next historic migration trend.
"During the Dust Bowl, during the Great Depression, California was the place to go. Texas is the place to go now," Gattis said. "Sure, we are clearly losing some jobs but people are still moving here. I can see it anecdotally in the license plates around town. I see a lot of Michigan plates, California license plates, I see them from all over."
That’s playing out across the state, according to the Texas Department of Transportation, which tracks motor vehicle registrations.
In 2000, there were 17,962,300 registered vehicles in Texas and that number soared more than 3 million to 21,185,173 by the end of last year, the department reports.
"Vehicle registrations continue to climb by the hundreds of thousands in Texas despite a decline in vehicle sales," department spokeswoman Kim Sue Lia Perkes said. "This may be one indicator that Texas continues to experience a steady stream of transplants from other states despite the national economic downturn."
John McLendon sees the economy where all that rubber meets the road.
No Vacancy signs were the norm at his Oak Creek RV Park near Weatherford for years as migratory workers flocked to the drilling fields of the Barnett Shale, he said. Most of them cleared out late last year, when natural gas prices cratered and companies mothballed rigs.
Now he’s seeing a different trend. People from states hit hard by the recession are coming here in search of jobs. "I’ve seen some from Florida, Utah, Colorado, Montana — they’re from everywhere," McLendon said.
Jo Ann Royer, director of relocations for Williams & Trew real estate, say inquiries about moving to Fort Worth are coming from across the country.
"We’re seeing the whole spectrum of medical industry employees. They are coming from everywhere because the hospitals here are expanding," Royer said. "We’ve had, believe it or not in this economy, banking personnel coming in because there is a new bank on every corner in Fort Worth."
'Zone of sanity’
Jim Gaines, a research economist at Texas A&M University, says that the recession has slowed overall growth but that there are good reasons why people continue to come to Texas.
"Why do people move? Generally, jobs," Gaines said. "Right now, Texas will probably be the only state in the Union that reports more jobs than the year before — by a total of close to 154,000 [in 2008]."Those numbers will be reduced this year. But if you are an entrepreneur or want to start a business, this is the best place to do it because of the pro-business attitude of the state."
Eventually, when distressed housing markets across the country stabilize, Gaines predicts that skittish homeowners will be weighing their options. In those places, "as soon as you can finally sell, you’re going to get the hell out of Dodge," Gaines said.
Jason Saving, a senior economist at the Federal Reserve Bank of Dallas, also believes that Texas has some "fundamental advantages" that are spurring growth, even in a recession.
First is a "very favorable business climate," and second is affordable real estate.
"These things make the state attractive to businesses and residents alike," Saving said. "I think that’s why, if you look at the migration data within the U.S., that you see so many people moving from other states to Texas."
Gattis says Texas’ cost of living is a key to its attractiveness.
"It’s not everything," he said, "but when you have more discretionary income you can buy a better house, a better car, you can spend it at restaurants. That’s income that leads to a better quality of life. "
Texas State Demographer Karl Eschbach says in tough times, people "move to where they think they can survive."
"You might move back home where you have family and a support network, or you move to where you can get a job," Eschbach said. "If I’d left Texas and then lost my job, I would be back in a quarter-second."
Mark Lowther moved fast when that happened to him.
The Texas native was a marketing manager in Seattle for Washington Mutual, the failed savings and loan which was bought by JPMorgan Chase.
His job ended May 1, and he and his wife, Michelle, a disaster contingency consultant, "jumped" at the chance to come to Fort Worth so he could join Southwest Bank as a senior vice president and marketing director.
"The real estate market here is stronger and more affordable," Mather said as movers were unloading the couple’s belongings. "You can buy a comparable house here for close to half the price what you can get on the West Coast."
Kotkin, the L.A. author, says Texas is benefitting by being in what he calls "the zone of sanity," a swath of the nation’s midsection where housing prices stayed stable.
The twin lures of jobs and affordable housing are important to young professionals planning to raise a family or start a business, he said.
That’s what Lance Marshall and Elizabeth Peirce have in mind. The 25-year-old high school sweethearts from North Texas moved to Chicago in 2005 to pursue careers after graduating from college.
Marshall managed a specialty wine store and Peirce worked for a nonprofit and then turned to waiting tables before working as a media coordinator for a fashion boutique.
"I was underemployed and I never stopped looking for a job," Peirce said. "In Chicago, the competition was incredibly fierce and the economy wasn’t very good and then it really declined last year."
When they got engaged, coming back home looked like the safe bet. In February, they moved in with her parents in Grapevine, which has "been fun and mortifying at the same time," she said.
She’s now working as a sales consultant at a bridal shop. It’s not the job in communications that she wants, but it’s a start, and she’s still hunting. Marshall is working for a wine distribution company and dreaming of owning his own business.
"I can see a lot of optimistic growth here" he said. "I want to be a 50-year-in-the-same-house kind of guy, and when I was thinking of the places to do it — it was D-FW."
Open for business
Texas’ business climate of low taxes and a low regulatory burden draws companies and workers, Saving said.
"There is something inherently entrepreneurial about Texas. It’s the nature of the state from its formation, Texas was built by people who were looking to better themselves, and that has continued ever since," he said.
Kotkin says tight business regulation is hurting California. But not Texas. "Whether you are GOP or Democrat, you can’t imagine Texas becoming anti-business," he said.
Seguin Mayor Betty Ann Matthies says that mind-set is part of the reason Caterpillar is building a 850,000-square-feet diesel-engine plant that will employ 1,400 in her town of 25,091 east of San Antonio.
"I think that Texas is known right now for trying to encourage industry to come here," Matthies said.
The city and state’s "willingness to help," along with a location with easy access to interstates and major ports were key factors in Caterpillar’s decision, spokeswoman Kate Kenny said.
"It was a good decision all around, the location, the people, the timing," she said.
An economic refuge
No one argues that the recession hasn’t bruised Texas, too.
But for people like Benton from Clinton Township, Mich., Texas feels like an economic safe zone by comparison.
When Benton, a 45-year-old staff sergeant in the Army National Guard, was notified that he was losing his job as a computer systems operator, he also learned he was going to be redeployed.
He was at Fort Hood in Texas when he was on active duty in the 1990s and he liked it. "People are friendly here," he said.
So he leapt at a chance to be stationed in San Antonio and work as a liaison in the Wounded Warrior program helping injured soldiers. "This is rewarding. I don’t plan on going back to Michigan," he said.
The auto industry’s woes stretch from Michigan into Dayton, Ohio, where Dione Kennedy, 48, was the president and CEO of a theater association. Since January, she’s held the same title at Bass Hall in Fort Worth.
"Things are very tough in Ohio," she said "Dayton is a big GM town, and a lot of industry was built around that and it has been hit hard."
And the real estate market here seemed healthy by comparison.
"Prices for homes in Ohio have been rapidly dropping and in the communities here there was no apparent downturn," Kennedy said.
She and husband Daniel, a stay-at-home dad for their young daughter, have noticed another difference.
"It seems like every time my husband talks to someone in Dayton, it’s another concern about someone about to lose a job or has a lost a job. We don’t hear that here."
The U.S. Census Bureau recently reported that because of the recession, Americans are moving at some of the lowest rates in 50 years.
But Saving, the Fed economist, believes people "will vote with their feet" and keep heading to Texas.
"Moving is costly, and it’s a hassle. It’s not something people want to do . and looking long-term, I think it’s . . unless they see a better opportunity clear that Texas is a favorable place to be from an economic point of view."
Tuesday, May 19, 2009
Distressed Properties and First-Time Home Buyers - The Recipe for Real Estate Recovery?
Distressed Properties and First-Time Home Buyers - The Recipe for Real Estate Recovery?
By Mary Ellen Podmolik Print Article
RISMEDIA, May 19, 2009-(MCT)-Value-conscious, first-time buyers have become key to the housing market’s recovery, and they are snapping up priced-right foreclosures despite the warts-and-all, sold-as-is condition of the properties. Half of the sales made in the year’s first quarter were to first-time buyers and almost half of all these sales were distressed properties, the National Association of Realtors reported. Distressed properties include foreclosures and short sales, which are private transactions in which a homeowner sells the property for less than the amount owed on a mortgage.
The glut of foreclosures has pushed down home values, so heightened interest in buying them benefits the immediate neighborhood and the overall housing market.
“It’s a very good first step,” said Lance Ramella, a principal at RW Real Estate Advisors in Oakbrook Terrace. “The first step is selling the most value-conscious units and those are the foreclosures. We’re not going to see any real sustainable price appreciation until we move the foreclosures off the inventory list.”
Moving homes off the foreclosure inventory list may take a while though. With the lapse of several industrywide foreclosure moratoriums, lenders nationwide are initiating foreclosure proceedings again. Government-led efforts to refinance or modify troubled loans can’t help the rising number of people unable to pay their mortgages because they’ve lost their jobs.
In Illinois, more than 7,300 homes became bank-owned during the year’s first quarter, according to RealtyTrac. It’s impossible to determine how many of them are listed for sale, or sold, at any one time because the area’s real estate listing service doesn’t require a property to be listed as a foreclosure.
To capture new interest in home sales thanks to lower interest rates and a first-time-buyer tax credit, a growing number of lenders and asset management companies that own foreclosed homes now appear more willing to drop prices. Banks used to hold fast on pricing and held back properties so they didn’t flood the market, but that has changed, said Susan Sirles Fidler, an agent at Re/Max 10 in Oak Lawn who works with lenders.
Attractive pricing is causing a noticeable increase in multiple offers. In just the past two weeks, a two-bedroom, two-bath Lincoln Park condo listed at $289,000 garnered 60 showings in two days and 20 offers; it sold for just over $330,000. A vandalized East Village penthouse that needed at least $80,000 in repairs was listed at $159,000 and sold for $245,000. In Northbrook, a foreclosed home listed at $719,000 received multiple offers and sold for $730,000.
A bidding battle on a foreclosure with potential “is not the exception,” said Henry Torn, a buyer’s agent at Chicago Realty Partners.
The uptick in interest is encouraging to lenders as well. “That’s what gives us hope,” said Sanjiv Das, chief executive of CitiMortgage. “It’s positive, healthy activity. We’re actively lending to that end of the market, the owner-occupant.”
Finding diamonds in the rough can be a test of stamina, determination and an ability to hold one’s breath. There can be evidence of vandalism, water damage, multicolor mold and squatters who didn’t have access to bathroom facilities because the plumbing fixtures were stolen.
“This is not for the faint of heart,” said Marki Lemons, an agent with Rubloff Residential Properties, who carries a flashlight into properties and keeps paper masks in her car. “You have to be patient, be non-judgmental and have some vision. You have to decide if you can stomach this.”
Others are in decidedly better shape, in part either because companies are offering departing homeowners cash for keys and a clean property or they are sprucing up the properties before they put them on the market.
“These asset managers are at a point where they’re writing checks and trusting the Realtor to get the work done and put it on the market,” said Dean Rouso, owner of Prime Property Partners in La Grange. “We’re helping the neighborhoods because instead of having this comparable property out there for $99,000, we now have a comp for $150,000.”
Not all buyers, however, find themselves on the winning end of foreclosure deals, and that is causing them to look for value in the traditional market.
By Mary Ellen Podmolik Print Article
RISMEDIA, May 19, 2009-(MCT)-Value-conscious, first-time buyers have become key to the housing market’s recovery, and they are snapping up priced-right foreclosures despite the warts-and-all, sold-as-is condition of the properties. Half of the sales made in the year’s first quarter were to first-time buyers and almost half of all these sales were distressed properties, the National Association of Realtors reported. Distressed properties include foreclosures and short sales, which are private transactions in which a homeowner sells the property for less than the amount owed on a mortgage.
The glut of foreclosures has pushed down home values, so heightened interest in buying them benefits the immediate neighborhood and the overall housing market.
“It’s a very good first step,” said Lance Ramella, a principal at RW Real Estate Advisors in Oakbrook Terrace. “The first step is selling the most value-conscious units and those are the foreclosures. We’re not going to see any real sustainable price appreciation until we move the foreclosures off the inventory list.”
Moving homes off the foreclosure inventory list may take a while though. With the lapse of several industrywide foreclosure moratoriums, lenders nationwide are initiating foreclosure proceedings again. Government-led efforts to refinance or modify troubled loans can’t help the rising number of people unable to pay their mortgages because they’ve lost their jobs.
In Illinois, more than 7,300 homes became bank-owned during the year’s first quarter, according to RealtyTrac. It’s impossible to determine how many of them are listed for sale, or sold, at any one time because the area’s real estate listing service doesn’t require a property to be listed as a foreclosure.
To capture new interest in home sales thanks to lower interest rates and a first-time-buyer tax credit, a growing number of lenders and asset management companies that own foreclosed homes now appear more willing to drop prices. Banks used to hold fast on pricing and held back properties so they didn’t flood the market, but that has changed, said Susan Sirles Fidler, an agent at Re/Max 10 in Oak Lawn who works with lenders.
Attractive pricing is causing a noticeable increase in multiple offers. In just the past two weeks, a two-bedroom, two-bath Lincoln Park condo listed at $289,000 garnered 60 showings in two days and 20 offers; it sold for just over $330,000. A vandalized East Village penthouse that needed at least $80,000 in repairs was listed at $159,000 and sold for $245,000. In Northbrook, a foreclosed home listed at $719,000 received multiple offers and sold for $730,000.
A bidding battle on a foreclosure with potential “is not the exception,” said Henry Torn, a buyer’s agent at Chicago Realty Partners.
The uptick in interest is encouraging to lenders as well. “That’s what gives us hope,” said Sanjiv Das, chief executive of CitiMortgage. “It’s positive, healthy activity. We’re actively lending to that end of the market, the owner-occupant.”
Finding diamonds in the rough can be a test of stamina, determination and an ability to hold one’s breath. There can be evidence of vandalism, water damage, multicolor mold and squatters who didn’t have access to bathroom facilities because the plumbing fixtures were stolen.
“This is not for the faint of heart,” said Marki Lemons, an agent with Rubloff Residential Properties, who carries a flashlight into properties and keeps paper masks in her car. “You have to be patient, be non-judgmental and have some vision. You have to decide if you can stomach this.”
Others are in decidedly better shape, in part either because companies are offering departing homeowners cash for keys and a clean property or they are sprucing up the properties before they put them on the market.
“These asset managers are at a point where they’re writing checks and trusting the Realtor to get the work done and put it on the market,” said Dean Rouso, owner of Prime Property Partners in La Grange. “We’re helping the neighborhoods because instead of having this comparable property out there for $99,000, we now have a comp for $150,000.”
Not all buyers, however, find themselves on the winning end of foreclosure deals, and that is causing them to look for value in the traditional market.
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