Catching up

QUOTE OF THE WEEK..."Discontent is the first necessity of progress"--Thomas Edison, American inventor
DID YOU KNOW?... Fiscal policy refers to decisions by the President and Congress that usually relate to taxation and government spending and have the goals of full employment, price stability, and economic growth.  Shared by Bill Bazzel
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Nat'l Real Estate Post:
The Senate actually confirmed Richard Cordray as head of the CFPB.  So, all the rules he put in place during his "recess appointment" will be enforced.
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Estates, condos are top sales of first half 2013

Metro Atlanta’s luxury home market is poised for a solid year. The most expensive residential sale in the works so far in 2013 is part of a 16-acre site in Roswell. Its owners are already celebrating the deal by living on a yacht for the rest of the year. The home at 109 Goulding Place is under contract to an unknown developer for $6.9 million.
Shared by Sonja Bullard in Angel Oak Weekly
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According to a RealtyTrac report, 136,184 single-family home flips occurred in the first six months of 2013, which is up 19% from the same time period in 2012 and a 74% increase from the six-month span two years ago.
Property flippers—investors who buy a home and then sell the same property within six months—made an average gross profit of $18,391 on single-family home flips in the first half of 2013. This figure represents a 9% gross return on the initial purchase price, the Irvine, Calif.-based firm said.
By Evan Nermaroff in Origination News
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Stephen White:

Rent Prices vs. Home Prices

Since 2011 the price of rent has increased 60% while the price of homes decreased 46% in the US. Who says it's not an investor market?!

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Some economists are raising warning flags over the fact that 77 percent of this year's new jobs are part-time, saying the numbers provide a bleak portrayal of the labor market. -- Dan Well in Money News
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Nat'l Real Estate Post:
If we take Fannie Mae and Freddie Mac out of conservatorship then we can solve some problems.  Those are:  1.  The senate doesn't like Mel Watt as head of FHFA; 2.  Need private capital; 3.  Need solutions; 4.  Investors and private funds are coming out with lawsuits against the GSE's for money they think the GSE's owe them.  The director can issue the order to take the GSE's out of conservatorship.  Fannie and Freddie are the third most profitable company behind Exxon and Apple.  However, it probably won't happen because the gov't owns the company lock stock and barrel.  Also, the solution is cheap, easy and makes sense.  But we are talking about the Gov't.  It probably won't happen.
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Shared by Guy Kawasaki

"Money won't buy happiness, but it will pay the salaries of a large research staff to study the problem". 
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This is for everyone who wonders why they run or wonders why anyone else runs.  http://theoatmeal.com/comics/running
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For the third consecutive month, the National Association of Home Builders/Wells Fargo Housing Market Index experienced a monthly gain. In July, the index rose six points from June to 57, representing the strongest reading since January of 2006.
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If a drop of water falls in a lake there is no identity. But if it falls on a leaf of a lotus it shines like a pearl. So choose the best place where you would shine.
Shared by Jen Baptist
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Science affects real estate.  Watch these two college students work to reclaim land from plastic.

How two young scientists found bacteria that break down plastics

http://youtu.be/ay-y3tSYGYw

Originally shared by Guy Kawasaki

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Home-flipping, defined as buying and selling the same home within six months, came roaring back in the first half of this year. There were 136,184 homes flipped, an increase of 19 percent from a year ago and 74 percent from the first half of 2011, according to a new report to be released Friday by RealtyTrac. --  Diana Olick on CNBC
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Shared by George Takei
September 19 every year is Talk Like a Pirate Day.   Prepare yourselves.
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Nat'l Real Estate Post:
Only Exxon, Apple, Cheveron, JP MOrgan Chase, Wells Fargo are more profitable than the GSE's Fannie and Freddie.  But Congress wants to eliminate the GSE's even though they are so very profitable.  Maybe it is because they make all the other government departments look really bad.

We are offically down to pre-housing bust foreclosures.
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When Federal Reserve policymakers start to curb $85 billion in

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monthly bond buying, possibly before the end of the year, the last thing they want to do is spoil the nascent U.S. housing recovery.
That means the Fed may concentrate first on trimming purchases of Treasuries, while continuing to buy mortgage bonds to keep a lid on interest rates for home loans.  © Copyright 2013 Bloomberg News
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The housing recovery is slow.  This is due to several factors.  1. The lending institutions have tight credit requirements for buyers and builders.  This is because the U.S. Federal Reserve has imposed tougher regulation that has made big banks reluctant to lend to small suppliers due to the reckless lending that led to the last housing crisis. But the US needs new construction homes.  2. Another problem with getting new homes on the market is the lack of laborers.  A tough economy coupled with tougher immigration laws have shriveled the labor pool.  3.  The suppliers of materials are behind the supply demand.  If shingles haven't been produced, the builder can't finish the roof.

Here are the solutions:  1. Because the interest rates are rising, the banks are beginning to loosen the credit requirements.  This will allow more builders and buyers to satisfy their borrowing needs.  2.  Create really good temporary worker laws for agriculture and construction.  We had good temporary worker laws until the 70's when the unions convinced Congress to change them in favor of union workers.  Also, if we had the Fair Tax, the temporary workers would pay their share of taxes.  3.  Follow the money.  When building supplies are in short supply the price rises.  As the suppliers catch up with the demand, the prices will drop, that is if the government doesn't decide to place more regulations on the already over regulated industry.  Patience is the key.
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Rep. Jeb Hensarling, R-Texas.... The House Financial Services Committee Chairman inserted a provision in a draft of his proposed mortgage finance legislation to stop eminent domain. The proposal, if passed, would block federally backed loans in any county that allows eminent domain to be enacted. -- kpanchuk@housingwire.com
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And Yes, Yes, Yes, more people are ready and willing to hop into the housing market.  Whether they are first time apartment renters or buying second homes, the pent up demand is popping.  Sellers, we need you!
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Jill Pierce is Team Leader for RealEstateAuctions.com
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Foreclosures down, prices still going up.

Shared by Vijay Raja
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For the first six months of 2013, RealtyTrac reported a total of 801,359 U.S. properties with foreclosure filings, which include default notices, schedules auctions and bank repossessions. This is down 19% from the previous six months and a 23% drop from the first half of 2012.
Year-to-date, 409,491 foreclosure starts have been filed throughout the country, on pace to reach more than 800,000, which would be down from 1.1 million foreclosure starts in 2012.
Florida, Nevada, Illinois, Ohio and Georgia posted the top five state foreclosure rates for the first half of the year, while five Florida cities posted the top five metro foreclosure rates: Miami, Orlando, Jacksonville, Ocala and Tampa. -- mhopkins@housingwire.com
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Surprisingly, the recent run-up in rates has not greatly affected prices or home-purchase mortgage applications as of yet. According to the Trulia Price Monitor, asking prices only rose 1.5% month-over-month in June. Additionally, the Mortgage Bankers Association index for home-purchase mortgage applications in June rose 2% month-over-month.
"The interest rate increase hasn’t affected any homebuyer that I’m dealing with at this point in time," said (Matt) Weaver. "Has it affected their amount of monthly payments? Certainly. But it hasn’t taken them out of the game." -- mhopkins@housingwire.com
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Shared by George Takei
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Nat'l Real Estate Post:

Time for cartoons. Have a lovely summer.

Shared by Vijay Raja
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Shared by Vijay Raja
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Nat'l Real Estate Post:
The Supreme Court has decided to hear the case of recess appointments which were done by the President when Congress was technically not in recess.  This means that the CFPB appointment of Richard Cordray may not be legal.  This means that all the work he has done to put more regulation on the mortgage industry may be going out the window. 
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Chasing Excellence with Rick Floyd:
Twenty-five habits of Highly Successful People chapter 5:  Listen, Learn and Lead.  Listen first, learn second and then you can lead.  Ask the right questions, learn about each customer and connect them to others who can fill needs in other areas of their lives.  This will give  you more referrals and more business.
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Nat'l Real Estate Post:
In the month of June, credit became more available due to interest rates rising.  As interest rates rise, qualified buyers under present rules become less available.  Therefore in order to get more loans, the rules for underwriting must be relaxed and that is just what is starting to happen.  This should continue as interest rise and refi's decrease.
Foreclosures are down by 29% from last year.  As foreclosures decrease prices rise.  Expect more bottlenecks, multiple offers pushing prices up.
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Shared by Jeffery L.  Carter
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Shared by Rob Burns
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Jill Pierce is Team Leader for RealEstateAuctions.com

The economy continues to chug along.

Shared by Dietr Birr
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Builders national and international are setting up shop in Texas.
http://www.dallasnews.com/business/residential-real-estate/20130627-dallas-areas-hot-housing-market-has-caught-the-eye-of-out-of-town-homebuilders.ece
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The house prices are slowing, but that means a return to a normal housing market.  Also, as foreclosures disappear, sellers are increasing in number. 
http://finance.fortune.cnn.com/2013/06/28/housing-recovery-prices-2/
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Nat'l Real Estate Post:
House prices have risen 6.7% in the last month which is as much as in the previous 11 months.  Prices are up 12.1% from a year ago.  If we keep this up we are quickly heading for inaffordablility.  Income is only rising by 2%, but the U6 number is 14%, which means we are heading for another housing crisis if the market doesn't slow.  So, we need an interest rate hike.  This will cool the market, marginalize inflation, and encourage private mortgage lending.
http://thenationalrealestatepost.com/2013/06/28/real-estate-biz-is-walking-on-air/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+TheNationalRealEstatePost+%28The+National+Real+Estate+Post%29
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The Southern housing market is suffering shortages:  inventory, developed lots, construction workers, and ability to secure building loans.
http://www.housingwire.com/news/2013/06/28/southeastern-housing-markets-remain-lackluster-due-shortages
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Nat'l Real Estate Post:
BoA is outsourcing paperwork to India to check if appraisals are completed or not. 
Fannie Mae wants to speed up short sales.  So Fannie is asking realtors to submit their offer to Fannie Mae at the same time they submit the offer to the company that is servicing the mortgage if indeed Fannie is indeed servicing the mortgage.  The White House (Obama) is promoting a round table discussion to see how we can reduce our carbon footprint in mortgage underwriting and the appraisal process.  (Now that's weird!)
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Posted by Dietr Birr
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Shared by Vijay Raja
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North Las Vegas eminent domain proposal faces pushback from homeowner
http://www.housingwire.com/news/2013/07/01/north-las-vegas-eminent-domain-proposal-faces-pushback-homeowner
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The 10 most secure places to live as shared by Jessi Hall
 http://www.forbes.com/sites/williampentland/2013/06/29/americas-safest-most-secure-places-to-live/
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Shared by Vijay Raja
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Looks rather other worldly.  By Arthur Dyson Architects
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We still need housing inventory.

40% of households in the US now think it is a good time to sell.  This is up from 30% in April.
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Sometimes one pays most for things that cost nothing. -- From Commercial Lending
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The housing market is now 61% of the way back to normal – a big jump from 35% one year ago. That’s the first time Trulia’s Housing Barometer has crossed 60%. The recovery has reached full-fledged teenager status, with awkward, sudden growth spurts and parents – the Fed – who now threaten to take away its allowance by winding down measures that pushed mortgage rates down to historic lows, writes Trulia.
Before long, the recovery should make it into adulthood, but it will face some grown-up challenges in the next couple of years: still-tight mortgage credit for many borrowers, a slow jobs recovery for young adults, and unaffordable housing in large coastal markets, Trulia ($30.20 -0.505%) reported.  Jed Kolko in Trulia
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What did it say? The data covers various cities plus national composites. For the 12 months ending April 2013, average home prices rose 12.1% in the 20-city composite. In April alone, composite prices jumped 2.5%. This was the highest monthly gain in S&P/Case-Shiller history.
Is this a recovery? After the last few years, it may be more of a dead-cat bounce. However, the report had a few other positive signs.

• All 20 cities in the composite had annual price gains for the fourth-consecutive month.

• Atlanta, Dallas, Detroit and Minneapolis posted their highest-ever annual gains in April.

• In April, Detroit was the only city in the index where housing prices fell.

• Atlanta, Las Vegas, Phoenix and San Francisco are the hottest markets, with home prices up more than 20% since the same time last year.
• As of April 2013, average home prices across the United States are back to their early 2004 levels for both the 10-City and 20-City Composites. Measured from their June/July 2006 peaks, the peak-to-current decline for both Composites is approximately 26-27%. The recovery from the March 2012 lows is 13.1% and 13.6%, respectively.

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SAC FCU, Bellevue, Neb., is offering a new mortgage that charges a 3% down payment, no prepayment penalty, terms up to 30 years and in-house servicing.

This product is aimed at first-time home buyers, but the credit union said it also may be beneficial to move-up home buyers.
First-time home buyers may qualify for no lender closing costs.
“This program can help buyers who need down payment assistance or reduced out-of-pocket expenses at a time when home sales are gaining strength,” said Alan Stoltenberg, vice president of mortgages at the $675-million credit union.
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Real Estate

Second-home sales shift to Generation X

By Megan Hopkins

• June 21, 2013 • 5:04pm

The average age of a consumer looking to buy a second home is 50, said Chris Kelsey, president of Long Cove, a private community on Cedar Creek Lake built to give Dallas-area families a close-to-home getaway.
What’s interesting, notes Kelsey, is the language used by the Baby Boomers compared to Generation X. Boomers often refer to their second home as a "vacation home," while Gen X typically calls it a "second home."
"This distinction is important to them because they don’t see their resort property as a place for vacation," said the Kelsey & Norden Resort Real Estate Survey. "Instead, they think of it as an extension of their regular lives, a second home where they are connected to a community of like-minded friends and can provide their kids an alternative experience to their urban or suburban neighborhoods. And with the shift comes a similar shift in vocabulary."
Regardless, second-home sales seem to be flourishing, --  Megan Hopkins at HousingWire
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James Fitzgibbons of the Highlander fund predicts a drop in the stock market of 3000 points by the end of the year.  -- quoted by Dick Morris in his Lunch Alert
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It is a possible a shortage in skilled labor for housing construction jobs could slow down a recovery in the sector, said Fitch Ratings.

“A deficit in workers, particularly skilled trades, combined with a lack of available finished lots and continued tight mortgage qualification standards could dampen growth momentum, but won't likely lead to disastrous national numbers for housing, we believe,” a report from Fitch noted. -- Brad Finkelstein in Origination News
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Nationwide housing starts rose 6.8 percent to a seasonally adjusted annual rate of 914,000 units in May due primarily to increased production on the multifamily side, according to newly released data from HUD and the U.S. Census Bureau. -- Sonja Bullard in Angel Oak Weekly
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Pending home sales soared in May, reaching their highest level in seven years, the National Association of Realtors reports.

NAR’s Pending Home Sales Index rose 6.7% to 112.3 in May, up from a downwardly revised 105.2 index score in April. From last year, the index is up 12.1%. -- Megan Hopkins in HousingWire
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A boy makes his girl jealous of other women, a true gentleman makes other women jealous of his girl.
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Jill Pierce is Team Leader for RealEstateAuctions.com