NAR - economy and housing to improve

NAR - economy and housing to improve

Although the housing market struggled to maintain an even footing
in 2011, gradual improvement is expected in 2012 and beyond,
according to projections at a residential forum here at the 2011
Realtors Conference & Expo.  Lawrence Yun, chief economist of the
National Association of Realtors and the most optimistic man in
America, said home sales should be stronger. “Tight mortgage
credit conditions have been holding back home buyers all year,
and consumer confidence has been shaky recently,” he said.
“Nonetheless, there is a sizeable pent-up demand based on
population growth, employment levels and a doubling-up phenomenon
that can’t continue indefinitely. This demand could quickly
stimulate the market when conditions improve.”  Yun projects
growth in Gross Domestic Product to be 1.8 percent this year,
then rising moderately at a rate of 2.2 percent in 2012. With job
growth of 1.7 to 2.2 million next year, the unemployment rate is
expected to decline to 8.7 percent by the second half of 2012.
Mortgage interest rates should gradually rise from recent record
lows and reach 4.5 percent by the middle of 2012.

Existing-home sales are forecast to edge up about 1 percent this
year, and then rise another 4 to 5 percent in 2012. Based on
NAR’s current projection model, existing-home sales would total
4.96 million in 2011.  NAR presently is benchmarking
existing-home sales, and downward revisions are expected for
totals in recent years, although there will be little change to
previously reported comparisons based on percentage change. There
will be will be no change to median prices or month’s supply of
inventory. Publication of the improved measurement methodology is
expected in the near future.  New-home sales are expected to be a
record low 302,000 this year, rising to 372,000 in 2012. Housing
starts are forecast to rise to 630,000 next year from 583,000 in
2011. “Although a double-digit growth in new-home sales and
housing starts sounds encouraging, the projections remain
historically soft relative to long-term underlying demand,” Yun
explained.  With falling inventory, the median home price should
rise in 2012. “Home prices have yet to show a definitive
stabilization pattern in most areas. Still, given an
over-correction in prices, there likely will be moderate
appreciation in 2012,” Yun said.

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NAR - commercial real estate to improve

NAR - commercial real estate to improve

Depressed conditions in the financial and small business sectors
continue to negatively affect the commercial real estate industry
and the nation’s economic recovery. That’s according to
economists at the Economic Issues and Commercial Real Estate
Business Trends Forum at the 2011 Realtors Conference & Expo
yesterday.  During the forum, National Association of Realtors
(NAR) Chief Economist Lawrence Yun shared his predictions for the
commercial real estate market in 2012 and 2013, anticipating a
steady improvement in commercial real estate markets.  According
to Yun, the U.S. economy remains sluggish and continues to
perform well below the desired pace of economic expansion. Still,
he said at the current rate of growth, about 3 to 4 million jobs
will be generated over the next 2 years.  While corporate
profits have surged in the past year, Yun said that business
spending and hiring remain low. Despite record-low borrowing
conditions, he said that many businesses are also not taking out
loans. As for why businesses are not spending their profits, Yun
cited concerns about over-expanding during times of low economic
activity and uncertainty about future government policies.

Another area of concern for the U.S. economy is small businesses,
a major driver of new jobs. Yun said small businesses are not
recovering from the downturn since small businesses owners
don’t have access to startup capital since they lack large cash
reserves and often use their personal savings and housing equity
as a source of funding.  “I anticipate a small recovery in the
next year in home values, which would help small business owners;
however, that’s only if legislators and regulations don’t add
obstacles to hinder the housing market recovery, such as
modifying or eliminating the mortgage interest deduction or
increasing down payment requirements,” said Yun.  Yun predicted
moderate improvements in commercial real estate markets and the
broad economy because job growth and other economic factors are
slowly improving. He said that despite the stock market’s
volatility, it is performing higher than it was in 2008, making
it easier for companies to raise capital and for consumers to
gain wealth.  Yun doesn’t anticipate a second economic
recession in the near term, because of the strong cash potential
that businesses could release into economy, which would help the
country avoid a second recession. He said that international
trade is expanding and that international home buyers are taking
advantage of the weaker dollar and investing in commercial and
residential real estate.

A majority of the commercial real estate sectors are still
experiencing rising absorption and little improvement in rents.
The multifamily apartment sector remains the strongest with net
absorption rates increasing and vacancies decreasing, causing
rents to rise across the country. Yun said that’s because
rising foreclosures and short sales are driving many individuals
into renting and that the lack of available credit to qualified
home buyers is keeping many in the rental market. However, high,
increasing rents combined with record-low interest rates are
enticing some individuals into the housing market.  At the
session, Yun was joined by Kenneth Riggs, president and chairman
of RERC and chief real estate economist of the CCIM Institute,
and Robert White, founder and president of Real Capital
Analytics, who shared his outlook for slight improvements in
commercial real estate markets in the year ahead.

Students head for McMansions

In Merced, a city in the heart of the San Joaquin Valley and one
of the country’s hardest hit by home foreclosures, the downturn
in the real estate market has presented an unusual housing
opportunity for thousands of college students. Facing a shortage
of dorm space, they are moving into hundreds of luxurious homes
in overbuilt planned communities.  The finances of subdivision
life are compelling: the university estimates yearly on-campus
room and board at $13,720 a year, compared with roughly $7,000
off-campus. Sprawl rats sharing a McMansion — with each getting
a bedroom and often a private bath — pay $200 to $350 a month
each, depending on the amenities.  A confluence of factors led to
the unlikely presence of students in subdivisions, where the
collegiate promise of sleeping in on a Saturday morning may be
rudely interrupted by neighborhood children selling Girl Scout
cookies door to door. 

This city of 79,000 is ranked third nationally in
metropolitan-area home foreclosures, behind Las Vegas and
Vallejo, Calif., said Daren Blomquist, a spokesman for
RealtyTrac, a company based in Irvine, Calif., that tracks
housing sales. The speculative fever that gripped the region and
drew waves of outside investors to this predominantly
agricultural area was fueled in part by the promise of the
university itself, which opened in 2005 as the first new
University of California campus in 40 years.  The crash crashed
harder here. “Builders were coming into the area by the
bulkload,” said Loren M. Gonella, who owns a real estate
company here. “It was, ‘Holy moly, let’s get on this gravy
train.’ ”  But visions of an instant Berkeley materializing
in the cow pastures were premature. The stylishly designed
university planned for a gradual expansion, adding 600 new
students a year. That has meant phased dorm construction, which
is financed with tax-exempt bonds repaid by student revenue.
There is room for only 1,600 students in the campus dorms, but
5,200 are enrolled.  With hundreds of homes standing empty, many
of them likely foreclosures, students willing to share houses
have been “a blessing,” said Ellie Wooten, a former mayor of
Merced.  Five students paying $200 a month each trump families
who cannot afford more than $800 a month.

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Congress Restores FHA Loan Limits to NAR-Backed Levels

Congress Restores FHA Loan Limits to NAR-Backed Levels

DAILY REAL ESTATE NEWS | FRIDAY, NOVEMBER 18, 2011

The U.S. House and Senate yesterday restored FHA loan limits to the level they were at before they were allowed to expire at the end of September. As a result, the limits will rise to 125 percent of the area median home price from 115 percent, up to a  maximum $729,750 from $625,500. NAR estimates that several hundred counties where FHA loan limits fell at the end of September will now rise back up to the previous level.

“The reinstated loan limits will help provide much needed liquidity and stability to communities nationwide as tight credit restrictions continue to prevent some qualified buyers from becoming home owners and the housing market recovery remains fragile,” said NAR President Moe Veissi in a statement released last night.

President Obama is expected to sign the legislation shortly. The restored loan limits are in a broad-based bill that includes funding for a wide variety of federal operations and programs.

The maximum conforming loan limits for secondary mortgage market companies Fannie Mae and Freddie Mac also expired at the end of September, but lawmakers did not include a restoration of those limits in the bill. As a result, conforming loan limits will remain at 115 percent of the area median home price, up to $625,500.

Once President Obama signs the bill, the limits will go into effect.  FHA will release a mortgagee letter to its approved lenders thereafter, containing a list that’s been updated to reflect the new limits. NAR analysts say it will take the agency a short period to update its database and release the mortgagee letter, maybe a couple of weeks.

The funding bill also extends the National Flood Insurance Program (NFIP) until Dec. 16 to allow lawmakers time to consider long-term authorization of that program, which is an NAR priority.

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Hosting Holiday Guests - 11/18 Money Pit e-Newsletter

Home Remodeling Repair & Improve Ideas & Solutions Radio & Podcasts Contact Us Community Presented by: The Welcome Mat The holidays are the time when we open our homes to friends and family to share meals and enjoy one another's company. Making the house comforting and inviting for guests while anticipating common holiday pitfalls is the order of the day, and it might seem like a tall one. But don't sweat--our menu of how-tos will help you cook up a successful holiday. You can do-it-yourself, but you don't have to do it alone. This Issue Dining Chair Cushion Redo Once the holidays arrive, keeping your home looking beautiful can be a challenge. Luckily, small improvements often make a big impression. You can easily update the look of your dining chairs with this simple upholstery project. read more Create a Comfortable Space Preparation for holiday guests doesn't have to take a lot of time or a big budget. Here's advice from the pros for creating welcoming guest spaces by prioritizing tasks and working with what you have to deck the halls in style. read more How to Be a Great Host Preparing for holiday guests with thoughtful accommodations cuts down on stress and creates ease for both the host and the hosted. You don't have to have a designated, guests-only room to accomplish this--just follow these basic hospitality principles and all your guests will feel at home during the holidays. read more Solving Turkey Day Troubles The potatoes are mashed, the pumpkin pie is cooling and the turkey is ready to be carved, but what's a homeowner to do when the unpredictable happens? Here are solutions to some of the holidays' most common home repair hurdles. read more ON THE AIR: Avoid Holiday Plumbing Emergencies Find out how to avoid plumbing emergencies by getting tips on how to take the strain off of your plumbing. Get tips on how to reupholster a dining room chair yourself, just in time for a big meal. Learn how to install fiberglass batt insulation properly so it stays put. Plus get answers to your home improvement questions about electrical circuits, clogged tubs, refinishing a tub, and more. read more Share This Information With A Friend! Simply forward this Email. And invite friends to register to receive this E-newsletter each week. If you would like to unsubscribe from our weekly newsletter, please refer to the unsubscribe directions at the bottom of this newsletter. You are currently subscribed to moneypit_e-newsletter as: dabeisner@yahoo.com To unsubscribe: click here or write to Squeaky Door Productions, Inc., 57 S. Main Street #133, Neptune, New Jersey 07753

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Joke of the day!

After every flight, pilots fill out a form called a gripe sheet, which conveys to the mechanics problems encountered with the aircraft during the flight that need repair or correction. The mechanics read and correct

the problem, and then respond in writing on the lower half of the form what remedial action was taken, and the pilot reviews the gripe sheets before the next flight. Never let it be said that ground crews and engineers lack a sense of humor! Here are some actual logged maintenance complaints and problems as submitted by Qantas pilots and the solution recorded by maintenance engineers.

(P = the problem logged by the pilot.)

(S = the solution and action taken by the engineers.)

P: Left inside main tire almost needs replacement.

S: Almost replaced left inside main tire.

P: Test flight OK, except auto-land very rough.

S: Auto-land not installed on this aircraft.

P: Something loose in cockpit.

S: Something tightened in cockpit.

P: Dead bugs on windshield.

S: Live bugs on back-order.

P: Autopilot in altitude-hold mode produces a 200 feet per minute descent.

S: Cannot reproduce problem on ground.

P: Evidence of leak on right main landing gear.

S: Evidence removed.

P: DME volume unbelievably loud.

S: DME volume set to more believable level.

P: Friction locks cause throttle levers to stick.

S: That's what they're there for.

P: IFF inoperative.

S: IFF always inoperative in OFF mode.

P: Suspected crack in windshield.

S: Suspect you're right.

P: Number 3 engine missing.

S: Engine found on right wing after brief search.

P: Aircraft handles funny.

S: Aircraft warned to straighten up, fly right, and be serious.

P: Target radar hums.

S: Reprogrammed target radar with lyrics.

P: Mouse in cockpit.

S: Cat installed.

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6 Tips to Successfully Manage Money as a Couple

6 Tips to Successfully Manage Money as a Couple

While discussions regarding finances don't make their way to the top of the to-do list as often as they should, it's more important than ever that couples take the time to sit down and discuss their finances and financial goals. Whether you already have a money management system in place-or you need help getting started-there's no better time than the present. Not only will a well thought-out plan keep both of you moving in the same direction toward your goals, it will also help to open the lines of communication so that you and your partner can talk more freely about financial problems, concerns and decisions.  

According to Jane Honeck, CPA and author of The Problem With Money? It's Not About Money! offers the following money managing tips.  

1. Talk, Talk, Talk. Money is still a taboo topic and we often don't have a clear idea about how our partner thinks or feels when it comes to spending versus saving. Talking about your goals with your partner is a simple way to make sure you're both on the same page when it comes to your finances.  

2. Find Balance: Balance power around money. One person making all the decisions and having all the control when it comes to finances is often a recipe for disaster. Find ways for you both to be equally engaged in all money decisions.  

3. Define Your System: Have a clearly defined money management system that covers everything from who handles the mail to who sends out the checks. Without a well thought-out plan in place, it's more likely that things will fall through the cracks.  

4. Address Problems: When problems arise, address them immediately (no secrets allowed). Avoiding the issue only makes it more toxic and drives a wedge in the relationship.  

5. Perform Checkups: Schedule an annual money checkup. Things change and just like our physical health, money management needs an annual checkup to keep it healthy and relevant. Set aside time to sit down with each other and evaluate what's working, what needs to be fixed and address any questions or concerns that either of you may have.  

6. Keep the Lines of Communication Open. The most important thing to keep in mind when dealing with your finances is to continue to communicate with no blame or shame. We all have hang-ups around money, so it's important to treat your partner with compassion when it comes to your finances.

As a Member of the Top 5 in Real Estate Network®, I, along with my team, have a wealth of real estate and home ownership information that may be of help to you. Feel free to contact our team any time to learn more about this important information, and be sure to forward this article on to any friends or family that may be interested as well.

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Weatherproof Your Home - 11/11 Money Pit e-Newsletter

Home Remodeling Repair & Improve Ideas & Solutions Radio & Podcasts Contact Us Community Presented by: The Welcome Mat Before you know it, winter weather will be here, bringing freezing wind and driving rain and snow that can do a number on homes that are not insulated or sealed properly. In this issue, we've got all the info you need to keep the weather out of your home and stay warm and dry this winter. You can do-it-yourself, but you don't have to do it alone. This Issue Love Your Home? Let's Home Talk! Hey Money Pit fans--we are really excited to announce that we've joined the panel of talented and enthusiastic pros at Hometalk.com, a community of regular folks and home improvement pros who love to talk about home improvement. We encourage you to join us and share your love for homes at Hometalk.com. read more Calling All Handy Homeowners During the month of November, Owens Corning will be calling all "Handy Homeowners" to show how they take on everyday household tasks in a video contest spoofing their new EcoTouch Insulation television commercial. read more Insulation and Weather Stripping Your Money Pit could have the greatest and most efficient heating system in the world, but when it comes down to it, your heating system is only as good as how well your home is insulated and sealed up. read more Home Safety: Top Danger Zones Home Sweet Home can harbor many dangers that are easy to put off fixing or overlook altogether. Before winter arrives, take time to secure your home inside and out to prevent the following top home danger zones from impacting your family's safety and security. read more Ask Tom & Leslie: Sealing Leaks in Electrical Outlets "I have a very odd problem. There is cold air leaking through the light switches and outlets on my outside wall. Is there any way to stop this?" read more ON THE AIR: Stop Water and Air Leaks Learn how an ice and water shield under your shingles can stop water leaks. Using spray insulation can seal small air leaks. Get tips on how to keep your heating system running smoothly through winter. Plus get answers to your home improvement questions about water pressure, eliminating weeds, insulating floors, and more. read more Share This Information With A Friend! Simply forward this Email. And invite friends to register to receive this E-newsletter each week. If you would like to unsubscribe from our weekly newsletter, please refer to the unsubscribe directions at the bottom of this newsletter. You are currently subscribed to moneypit_e-newsletter as: dabeisner@yahoo.com To unsubscribe: click here or write to Squeaky Door Productions, Inc., 57 S. Main Street #133, Neptune, New Jersey 07753

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