A new state program has helped 170 teachers across South Carolina own their first home.
The Palmetto Hero Program was part of the Education Department's efforts to attract and keep high-quality teachers. Schools Superintendent Jim Rex says buying a first home is particularly hard for teachers with low salaries.
Teachers who were first-time home buyers qualified for an interest rate of 5.875 percent and down payment assistance up to $7,000.
The average loan was around $117,000.
The program was a collaboration of the state Education and Housing Authority departments.
The agencies obligated $20 million in loans in what they hope is the first of many phases.
Friday, June 27, 2008
Thursday, June 26, 2008
Countrywide sued for unfair lending; buyout approved
Countrywide Financial Corp (CFC.N: Quote, Profile, Research), widely blamed for helping foment the U.S. housing crisis through free-wheeling lending, was sued for alleged deceptive mortgage practices by officials in its home state of California and in Illinois on Wednesday.
Marking the end of an era, shareholders the same day approved the company's takeover by Bank of America Corp (BAC.N: Quote, Profile, Research) at a closed-door meeting conducted by founder and Chief Executive Angelo Mozilo at its Calabasas, California compound.
The merger is set to close by July 1.
Countrywide became the company most closely associated with the U.S. housing boom -- in which mortgages with low teaser rates were seemingly handed out to anyone who asked -- as well as the real estate market's collapse when shaky borrowers lost their homes to foreclosure when mortgage rates rose.
Mozilo has also come under fierce criticism for his role in the bust. One of corporate America's top-paid executives, he has been under fire from consumer activists, lawmakers and regulators for the company's lending practices and the way it treats borrowers struggling to keep up with mortgage payments.
Mozilo got a standing ovation on Wednesday from the meeting's 300 attendees, many of them employees, said Scott Adams, coordinator for a pension program of the American Federation of State, County and Municipal Employees.
As a handful of journalists waited outside guarded gates at the company's suburban compound, the 69-year-old CEO tearfully recalled that he had received a loan from Bank of America to help co-found Countrywide, and reminisced about the millions of mortgages the company had written over the years, Adams said.
Despite the meeting's reflective tone, "there was a lot of security in there," Adams said, and shareholders were not given a chance to comment on the deal ahead of the vote.
Mozilo ended polling on the $2.7 billion deal in less than 20 minutes, making no mention of the mounting lawsuits against Countrywide, Adams said.
The largest U.S. mortgage lender is accused in the lawsuits of unfair trade practices that encouraged homeowners to take out risky loans, regardless of whether they could repay them.
California and Illinois officials said the company relaxed mortgage standards in an effort to rope in more customers. Countrywide "exploited the American dream of homeownership" and then sold its mortgages for huge profits to third-party investors, California Attorney General Jerry Brown said.
The company "was, in essence, a mass-production loan factory, producing ever-increasing streams of debt without regard for borrowers," Brown said. "Today's lawsuit seeks relief for Californians who were ripped off by Countrywide's deceptive scheme."
The California case, which also names company President David Sambol as a defendant, was filed in Los Angeles Superior Court.
The Illinois suit was brought in Cook County Circuit Court, and seeks to rescind or reform Countrywide mortgages originated under alleged unfair and deceptive practices as well as restitution for foreclosed homeowners.
Illinois Attorney General Lisa Madigan also asked the court to put a 90-day stay on Countrywide loans in foreclosure in her state to allow her office time to review them. Madigan said Countrywide was a major contributor to foreclosures in Illinois, with the foreclosure rate on Countrywide loans more than double that of other lenders between 2006 and 2007 in Cook County, which includes Chicago.
"Much of this came from Countrywide's greed and their desire to dominate the marketplace," she told a news conference.
In a statement, Countrywide said it was fully cooperating with the California and Illinois attorneys general, and was working with customers who are having trouble making mortgage payments.
Also on Wednesday, Washington state Gov. Christine Gregoire planned to hold a news conference to address "allegations of repeated discriminatory lending practices" by Countrywide, her office said in a press advisory. The state will fine the lender and ask that its license be withdrawn, the announcement said.
Countrywide faces lawsuits on many fronts over its falling stock price and allegations it inflated earnings and overstated its ability to weather the housing slump.
It also has been accused of abusing bankruptcy or foreclosure processes. At least three lawsuits were filed by offices of the U.S. Trustee, part of the Department of Justice.
Mozilo also faces a U.S. Securities and Exchange Commission probe into his sales of Countrywide stock before the share price dropped sharply when the U.S. housing bubble burst.
Marking the end of an era, shareholders the same day approved the company's takeover by Bank of America Corp (BAC.N: Quote, Profile, Research) at a closed-door meeting conducted by founder and Chief Executive Angelo Mozilo at its Calabasas, California compound.
The merger is set to close by July 1.
Countrywide became the company most closely associated with the U.S. housing boom -- in which mortgages with low teaser rates were seemingly handed out to anyone who asked -- as well as the real estate market's collapse when shaky borrowers lost their homes to foreclosure when mortgage rates rose.
Mozilo has also come under fierce criticism for his role in the bust. One of corporate America's top-paid executives, he has been under fire from consumer activists, lawmakers and regulators for the company's lending practices and the way it treats borrowers struggling to keep up with mortgage payments.
Mozilo got a standing ovation on Wednesday from the meeting's 300 attendees, many of them employees, said Scott Adams, coordinator for a pension program of the American Federation of State, County and Municipal Employees.
As a handful of journalists waited outside guarded gates at the company's suburban compound, the 69-year-old CEO tearfully recalled that he had received a loan from Bank of America to help co-found Countrywide, and reminisced about the millions of mortgages the company had written over the years, Adams said.
Despite the meeting's reflective tone, "there was a lot of security in there," Adams said, and shareholders were not given a chance to comment on the deal ahead of the vote.
Mozilo ended polling on the $2.7 billion deal in less than 20 minutes, making no mention of the mounting lawsuits against Countrywide, Adams said.
The largest U.S. mortgage lender is accused in the lawsuits of unfair trade practices that encouraged homeowners to take out risky loans, regardless of whether they could repay them.
California and Illinois officials said the company relaxed mortgage standards in an effort to rope in more customers. Countrywide "exploited the American dream of homeownership" and then sold its mortgages for huge profits to third-party investors, California Attorney General Jerry Brown said.
The company "was, in essence, a mass-production loan factory, producing ever-increasing streams of debt without regard for borrowers," Brown said. "Today's lawsuit seeks relief for Californians who were ripped off by Countrywide's deceptive scheme."
The California case, which also names company President David Sambol as a defendant, was filed in Los Angeles Superior Court.
The Illinois suit was brought in Cook County Circuit Court, and seeks to rescind or reform Countrywide mortgages originated under alleged unfair and deceptive practices as well as restitution for foreclosed homeowners.
Illinois Attorney General Lisa Madigan also asked the court to put a 90-day stay on Countrywide loans in foreclosure in her state to allow her office time to review them. Madigan said Countrywide was a major contributor to foreclosures in Illinois, with the foreclosure rate on Countrywide loans more than double that of other lenders between 2006 and 2007 in Cook County, which includes Chicago.
"Much of this came from Countrywide's greed and their desire to dominate the marketplace," she told a news conference.
In a statement, Countrywide said it was fully cooperating with the California and Illinois attorneys general, and was working with customers who are having trouble making mortgage payments.
Also on Wednesday, Washington state Gov. Christine Gregoire planned to hold a news conference to address "allegations of repeated discriminatory lending practices" by Countrywide, her office said in a press advisory. The state will fine the lender and ask that its license be withdrawn, the announcement said.
Countrywide faces lawsuits on many fronts over its falling stock price and allegations it inflated earnings and overstated its ability to weather the housing slump.
It also has been accused of abusing bankruptcy or foreclosure processes. At least three lawsuits were filed by offices of the U.S. Trustee, part of the Department of Justice.
Mozilo also faces a U.S. Securities and Exchange Commission probe into his sales of Countrywide stock before the share price dropped sharply when the U.S. housing bubble burst.
Wednesday, June 25, 2008
Federal Reserve - interest rate unchanged
The Federal Reserve, navigating treacherous economic waters, decided on Wednesday to leave a key interest rate unchanged, bringing an end to a string of consecutive rate cuts.
The central bank announced that it was keeping the federal funds rate, the interest rate that banks charge each other, at 2 percent, marking the first time in 10 months that the central bank has failed to reduce interest rates at one of its regular meetings.
The Fed is confronted with the twin perils of a possible recession and rising inflation pressures, stemming from this year's surge in oil and food prices.
In a brief statement explaining the decision, Fed Chairman Ben Bernanke and his colleagues cited both the threats to growth and rising inflation pressures as problems confronting the economy at the moment.
The statement said that the downside risks to growth "appear to have dimished somewhat" while adding that "the upside risks to inflation and inflation expectations have increased.
The Fed action was approved on a 9-1 vote with Richard Fisher, president of the Fed's regional bank in Dallas, casting a dissenting vote. Fisher objected to the action, saying he would have preferred an immediate increase in interest rates to fight inflation.
The decision to leave rates unchanged had been widely expected by financial markets.
Because of the Fed's decision, short-term borrowing costs on millions of consumer and business loans tied to banks' prime lending rate will remain unchanged. The prime rate is currently at 5 percent, its lowest level since late 2004.
Investors are split about the Fed's actions for the rest of the year. Some analysts believe the Fed could start raising rates, possibly as soon as the next meeting in August because of concerns about inflation. Other economists argue that the weak economy and rising unemployment will keep the Fed on the sidelines until at least after the November elections.
While saying that the upside risks to inflation have increased, the central bank repeated its forecast that it expected "inflation to moderate later this year and next year."
The opposing forces of weak growth and recession put the central bank in a bind. Its main policy tool — changes in interest rates — can only address one of those problems at a time. The Fed can cut interest rates to spur consumer and business spending and economic growth or it can raise interest rates to slow spending and growth and ease inflation pressures.
From September through April, the Fed aggressively cut interest rates seven times. However, after a series of sizable rate cuts as the credit crisis was roiling global financial markets at the beginning of this year, the Fed at its last meeting in April reduced rates by a more modest quarter-point and signalled that the rate cuts could be coming to an end.
Even as Fed policymakers were meeting Tuesday and Wednesday, the economic news has continued to be bleak including a report showing that consumer confidence in June dropped to the lowest level in 16 years. Soaring gasoline prices, plunging home values and rising unemployment are all weighing on confidence.
The Bush administration is hoping that the government's $168 billion economic stimulus program, which is sending rebate payments to 130 million households, will help dissolve some of the gloom and bolster consumer spending in the months ahead.
Against the backdrop of economic weakness have been rising signs of inflation pressures stemming from crude oil prices which have shot up this year to above $130 per barrel, pushing gasoline prices to all-tme highs above $4 per gallon and also prompting other companies to boost their prices.
On Tuesday, Dow Chemical Co. announced it was raising prices on a wide range of products by as much as 25 percent, an increase that is coming on top of price hikes of up to 20 percent it announced on June 1.
In a speech on June 9, Bernanke took a tough line on inflation, saying that the Fed would "strongly resist an erosion of longer-term inflation expectations." Those comments and tough talk from other Fed officials unnerved investors who went from thinking the Fed might leave rates unchanged for most of this year to starting to worry that rate hikes could begin this summer.
Other analysts, however, said they believed Bernanke wanted to send out a strong anti-inflation warning, especially since it was coupled with a comment in an earlier speech about the Fed chief's concerns that the weak dollar was adding to U.S. inflation problems. The remarks taken together had the impact of bolstering the dollar, which had been tumbling.
Some economists saw the comments by Bernanke and his colleagues as an effort to convince the markets that the central bank is serious about fighting inflation without having to start raising interest rates at a time when the economy remains very weak.
The last thing the central bank wants is a repeat of the 1970s, when successive oil price shocks did trigger a wage-price spiral that sent inflation soaring and was only subdued when the Fed under Paul Volcker pushed interest rates to levels not seen since the Civil War.
The central bank announced that it was keeping the federal funds rate, the interest rate that banks charge each other, at 2 percent, marking the first time in 10 months that the central bank has failed to reduce interest rates at one of its regular meetings.
The Fed is confronted with the twin perils of a possible recession and rising inflation pressures, stemming from this year's surge in oil and food prices.
In a brief statement explaining the decision, Fed Chairman Ben Bernanke and his colleagues cited both the threats to growth and rising inflation pressures as problems confronting the economy at the moment.
The statement said that the downside risks to growth "appear to have dimished somewhat" while adding that "the upside risks to inflation and inflation expectations have increased.
The Fed action was approved on a 9-1 vote with Richard Fisher, president of the Fed's regional bank in Dallas, casting a dissenting vote. Fisher objected to the action, saying he would have preferred an immediate increase in interest rates to fight inflation.
The decision to leave rates unchanged had been widely expected by financial markets.
Because of the Fed's decision, short-term borrowing costs on millions of consumer and business loans tied to banks' prime lending rate will remain unchanged. The prime rate is currently at 5 percent, its lowest level since late 2004.
Investors are split about the Fed's actions for the rest of the year. Some analysts believe the Fed could start raising rates, possibly as soon as the next meeting in August because of concerns about inflation. Other economists argue that the weak economy and rising unemployment will keep the Fed on the sidelines until at least after the November elections.
While saying that the upside risks to inflation have increased, the central bank repeated its forecast that it expected "inflation to moderate later this year and next year."
The opposing forces of weak growth and recession put the central bank in a bind. Its main policy tool — changes in interest rates — can only address one of those problems at a time. The Fed can cut interest rates to spur consumer and business spending and economic growth or it can raise interest rates to slow spending and growth and ease inflation pressures.
From September through April, the Fed aggressively cut interest rates seven times. However, after a series of sizable rate cuts as the credit crisis was roiling global financial markets at the beginning of this year, the Fed at its last meeting in April reduced rates by a more modest quarter-point and signalled that the rate cuts could be coming to an end.
Even as Fed policymakers were meeting Tuesday and Wednesday, the economic news has continued to be bleak including a report showing that consumer confidence in June dropped to the lowest level in 16 years. Soaring gasoline prices, plunging home values and rising unemployment are all weighing on confidence.
The Bush administration is hoping that the government's $168 billion economic stimulus program, which is sending rebate payments to 130 million households, will help dissolve some of the gloom and bolster consumer spending in the months ahead.
Against the backdrop of economic weakness have been rising signs of inflation pressures stemming from crude oil prices which have shot up this year to above $130 per barrel, pushing gasoline prices to all-tme highs above $4 per gallon and also prompting other companies to boost their prices.
On Tuesday, Dow Chemical Co. announced it was raising prices on a wide range of products by as much as 25 percent, an increase that is coming on top of price hikes of up to 20 percent it announced on June 1.
In a speech on June 9, Bernanke took a tough line on inflation, saying that the Fed would "strongly resist an erosion of longer-term inflation expectations." Those comments and tough talk from other Fed officials unnerved investors who went from thinking the Fed might leave rates unchanged for most of this year to starting to worry that rate hikes could begin this summer.
Other analysts, however, said they believed Bernanke wanted to send out a strong anti-inflation warning, especially since it was coupled with a comment in an earlier speech about the Fed chief's concerns that the weak dollar was adding to U.S. inflation problems. The remarks taken together had the impact of bolstering the dollar, which had been tumbling.
Some economists saw the comments by Bernanke and his colleagues as an effort to convince the markets that the central bank is serious about fighting inflation without having to start raising interest rates at a time when the economy remains very weak.
The last thing the central bank wants is a repeat of the 1970s, when successive oil price shocks did trigger a wage-price spiral that sent inflation soaring and was only subdued when the Fed under Paul Volcker pushed interest rates to levels not seen since the Civil War.
home buyer tax credit
The National Association of Home Builders (NAHB) has initiated an all-out effort to get Congress to pass badly needed stimulus legislation that will help stabilize the economy and housing market and assist millions of current and potential home owners. A central component of this legislation is a temporary home buyer tax credit to stimulate home purchases by qualified first-time buyers.
With the goal of urging lawmakers to act before their July 4th recess, NAHB is waging its effort on several fronts, including a grassroots lobbying initiative among the association’s 235,000 members and an ongoing national advertising campaign.
Among NAHB’s more visible efforts are this week’s placement of “An Open Letter to Congress” ad in The Washington Post and USA Today and two of the most widely read publications on Capitol Hill, Roll Call and Politico.
Under the headline “A Time for Leadership,” NAHB President and West Virginia home builder Sandra Dunn writes that “The landmark housing stimulus legislation now before both the House and Senate would help end the downward housing spiral that is the biggest threat to the health of our economy. Housing is in the grips of the most crippling downturn since the Great Depression, consumer confidence has plunged, economic growth has slowed to a crawl and unemployment lines are growing longer. This is not the time for demagoguery or partisanship. It is the time for flexibility and compromise. It is the time for action.”
Legislation currently being debated in Congress includes the all-important temporary home buyer tax credit, which would stimulate home buying and reduce excess supply in housing markets. NAHB Executive Vice President and CEO Jerry Howard calls this element “the best stimulative measure - it will get buyers off the fence, shore up home prices and halt the downward spiral in the housing market.”
The legislation also includes several other provisions to help revive housing and the economy, including FHA modernization, reform of housing government sponsored enterprises Fannie Mae and Freddie Mac, expansion of the mortgage revenue bond program and enhancement of the Low Income Housing Tax Credit to help spur production of much needed affordable rental housing.
With the goal of urging lawmakers to act before their July 4th recess, NAHB is waging its effort on several fronts, including a grassroots lobbying initiative among the association’s 235,000 members and an ongoing national advertising campaign.
Among NAHB’s more visible efforts are this week’s placement of “An Open Letter to Congress” ad in The Washington Post and USA Today and two of the most widely read publications on Capitol Hill, Roll Call and Politico.
Under the headline “A Time for Leadership,” NAHB President and West Virginia home builder Sandra Dunn writes that “The landmark housing stimulus legislation now before both the House and Senate would help end the downward housing spiral that is the biggest threat to the health of our economy. Housing is in the grips of the most crippling downturn since the Great Depression, consumer confidence has plunged, economic growth has slowed to a crawl and unemployment lines are growing longer. This is not the time for demagoguery or partisanship. It is the time for flexibility and compromise. It is the time for action.”
Legislation currently being debated in Congress includes the all-important temporary home buyer tax credit, which would stimulate home buying and reduce excess supply in housing markets. NAHB Executive Vice President and CEO Jerry Howard calls this element “the best stimulative measure - it will get buyers off the fence, shore up home prices and halt the downward spiral in the housing market.”
The legislation also includes several other provisions to help revive housing and the economy, including FHA modernization, reform of housing government sponsored enterprises Fannie Mae and Freddie Mac, expansion of the mortgage revenue bond program and enhancement of the Low Income Housing Tax Credit to help spur production of much needed affordable rental housing.
Home prices are pre-boom 2004 levels
The nationwide market has dropped to pre-boom 2004 levels, a closely watched housing index shows.
"We've erased the last four years of gains," a vice president of index analysis at Standard & Poor's, Maureen Maitland, said. "Home prices are still falling, and the pace of the decline does not seem to be abating."
The 20-city S&P/Case-Shiller Home Price Indices for April was 169.85, compared with 167.43 in August 2004, evaporating the appreciation homebuyers saw in the past four years.
Nationwide, the 20 major American cities in the index, which tracks the sale of single-family homes monthly, declined a record 15.3%, with 13 cities reaching all-time lows. In New York, home prices dropped 1.3% in April from the month earlier period, and more than 8% year over year.
In a separate report released yesterday, the Office of Federal Housing Enterprise Oversight, which looks at lower-priced homes that have government-backed mortgages, said prices across the country fell 0.8% in April compared with March, and 4.6% year over year, reaching December 2005 levels.
The two reports measure home prices differently, an economist at Global Insight, Patrick Newport, said. "The truth is somewhere in between the two," he said. Both are "telling a consistent story that prices are dropping nationally."
"Prices are probably going to drop quite a bit more because there's so much inventory out there," Mr. Newport added.
For the first time this year, every city measured in the S&P/Case-Shiller index saw a year-on-year drop. Charlotte, N.C., which had been the only city in the survey to post annual growth the other months this year, saw an annual price decline of 0.1%. In 10 of the cities in the index, annual declines were in the double digits, while seven cities posted drops of 20% or more.
The index does not measure condominium or co-op sales, so few Manhattan homes are reflected in the number, although it does include single-family homes in the other boroughs.
"We by our makeup are different from every other market in the country," the chief economist at the real estate firm Terra Holdings, Gregory Heym, said. "Prices in Manhattan have yet to significantly fall."
Mr. Heym said he does not expect any "dramatic changes" in the second-quarter data, to be released June 30.
The cities with the largest decline in the index are Las Vegas, with an annual decline of 26.8%, and Miami, with a drop of 26.7%. Chicago, Cleveland, and Denver, while still posting declines, showed some improvement in annual figures from last month, indicating that price drops in those markets may be slowing.
"We've erased the last four years of gains," a vice president of index analysis at Standard & Poor's, Maureen Maitland, said. "Home prices are still falling, and the pace of the decline does not seem to be abating."
The 20-city S&P/Case-Shiller Home Price Indices for April was 169.85, compared with 167.43 in August 2004, evaporating the appreciation homebuyers saw in the past four years.
Nationwide, the 20 major American cities in the index, which tracks the sale of single-family homes monthly, declined a record 15.3%, with 13 cities reaching all-time lows. In New York, home prices dropped 1.3% in April from the month earlier period, and more than 8% year over year.
In a separate report released yesterday, the Office of Federal Housing Enterprise Oversight, which looks at lower-priced homes that have government-backed mortgages, said prices across the country fell 0.8% in April compared with March, and 4.6% year over year, reaching December 2005 levels.
The two reports measure home prices differently, an economist at Global Insight, Patrick Newport, said. "The truth is somewhere in between the two," he said. Both are "telling a consistent story that prices are dropping nationally."
"Prices are probably going to drop quite a bit more because there's so much inventory out there," Mr. Newport added.
For the first time this year, every city measured in the S&P/Case-Shiller index saw a year-on-year drop. Charlotte, N.C., which had been the only city in the survey to post annual growth the other months this year, saw an annual price decline of 0.1%. In 10 of the cities in the index, annual declines were in the double digits, while seven cities posted drops of 20% or more.
The index does not measure condominium or co-op sales, so few Manhattan homes are reflected in the number, although it does include single-family homes in the other boroughs.
"We by our makeup are different from every other market in the country," the chief economist at the real estate firm Terra Holdings, Gregory Heym, said. "Prices in Manhattan have yet to significantly fall."
Mr. Heym said he does not expect any "dramatic changes" in the second-quarter data, to be released June 30.
The cities with the largest decline in the index are Las Vegas, with an annual decline of 26.8%, and Miami, with a drop of 26.7%. Chicago, Cleveland, and Denver, while still posting declines, showed some improvement in annual figures from last month, indicating that price drops in those markets may be slowing.
Tuesday, June 24, 2008
rates will likely move lower?
Last week rates improved slightly as money flowed from stocks to bonds. This week is loaded with economic reports and also features the Fed's FOMC meeting. So will rates continue to improve or begin heading higher again?
The price of crude oil continues to wreak havoc in the financial markets and even OPEC seems worried. Last week, Saudi Arabia announced that they will increase oil production in the near future, to a record high. They are concerned that the high price of crude oil will lead to lower demand and a turn toward alternative energy sources.
This week will likely be driven by the Fed's statement immediately following their two day meeting on Wednesday. Most economists believe the the Fed will hold the course and leave rates unchanged. However, any indication in their statement that they would be willing to increase rates in the future would likely cause rates to tumble.
Remember, when the Fed raises rates it causes downward pressure on inflation, which in general is good for rates.
The bottom line: If the Fed hints at rate hikes in their statement expect rates to move lower, but if they don't rates will likely move higher.
The price of crude oil continues to wreak havoc in the financial markets and even OPEC seems worried. Last week, Saudi Arabia announced that they will increase oil production in the near future, to a record high. They are concerned that the high price of crude oil will lead to lower demand and a turn toward alternative energy sources.
This week will likely be driven by the Fed's statement immediately following their two day meeting on Wednesday. Most economists believe the the Fed will hold the course and leave rates unchanged. However, any indication in their statement that they would be willing to increase rates in the future would likely cause rates to tumble.
Remember, when the Fed raises rates it causes downward pressure on inflation, which in general is good for rates.
The bottom line: If the Fed hints at rate hikes in their statement expect rates to move lower, but if they don't rates will likely move higher.
Real Estate by the Numbers
first-time home buyer findings include:
- 83% of first-time home buyers are under the age of 40, with 39% younger than 30.
- 42% of respondents expect to own their first home between one and five years.
- First-time home buyers ranked “neighborhood upkeep” among the most important aesthetic qualities of a home.
- 44% said the size of the home was the most important feature they look for in a house. Other important features first-time homebuyers look for include a wooded lot and proximity to work.
- In terms of the most important things first time buyers look for in an hour, “Proximity to place of work” and “availability of public transportation” received the most votes next to size of homes and number of bedrooms
“With gas prices on the rise, public transportation and distance to the workplace will become more and more important. Also, markets with affordable property taxes and low traffic commutes also stand to benefit,” said Storti.
Additional findings - 2007 vs. 2008
Additional findings of survey results indicated 24% of respondents are currently looking to sell their current home - down from last year’s survey when 50% replied the same way. Almost 35% of respondents plan to sell in more than 120 days compared to 21% last year, while 12% of respondents in 2007 were looking to sell in 90 to 120 days compared to 17% this year.
As for reasons for moving, nearly 43% of respondents have outgrown their current home and almost 30% have had a change in life situation. Last year, 26% stated both “outgrown current home” and “change in life situation.” Similar to last year’s 70 percent, this year 72 percent of sellers think “it’s a good time to buy.”
“More buyers are kicking the tires, while sellers are pacing. However, it’s important to notes that interest rates are still historically low. So, a home in good shape and priced right will sell,
- 83% of first-time home buyers are under the age of 40, with 39% younger than 30.
- 42% of respondents expect to own their first home between one and five years.
- First-time home buyers ranked “neighborhood upkeep” among the most important aesthetic qualities of a home.
- 44% said the size of the home was the most important feature they look for in a house. Other important features first-time homebuyers look for include a wooded lot and proximity to work.
- In terms of the most important things first time buyers look for in an hour, “Proximity to place of work” and “availability of public transportation” received the most votes next to size of homes and number of bedrooms
“With gas prices on the rise, public transportation and distance to the workplace will become more and more important. Also, markets with affordable property taxes and low traffic commutes also stand to benefit,” said Storti.
Additional findings - 2007 vs. 2008
Additional findings of survey results indicated 24% of respondents are currently looking to sell their current home - down from last year’s survey when 50% replied the same way. Almost 35% of respondents plan to sell in more than 120 days compared to 21% last year, while 12% of respondents in 2007 were looking to sell in 90 to 120 days compared to 17% this year.
As for reasons for moving, nearly 43% of respondents have outgrown their current home and almost 30% have had a change in life situation. Last year, 26% stated both “outgrown current home” and “change in life situation.” Similar to last year’s 70 percent, this year 72 percent of sellers think “it’s a good time to buy.”
“More buyers are kicking the tires, while sellers are pacing. However, it’s important to notes that interest rates are still historically low. So, a home in good shape and priced right will sell,
Monday, June 23, 2008
Survey Shows Consumers Optimistic on Real Estate
Consumers are apparently optimistic about the future of the national real estate economy, according to a new survey conducted by Housing Predictor. Nearly 1 out of 2 polled say they believe the national real estate economy will improve within the next two years.
The online survey serves to show that despite the turmoil in the nation's real estate markets, triggered by the credit crisis most believe conditions will improve in a short time span. Only 28% of all respondents said they believe it will take five years or longer for credit market conditions to improve the housing market.
An unprecedented epidemic of foreclosures has led to lower home prices in the over-whelming majority of the country. As many as 1 out of 3 homes in some especially hard hit areas listed for sale are foreclosures, damaging communities and housing values.
A majority of economists recently surveyed say the nation is either in a recession or at least close to experiencing one. Rising gasoline prices have triggered the highest food inflation the country has experienced since 1992, which was during the last major real estate recession.
Congress is dealing with a series of proposals to assist some homeowners threatened with foreclosure. But more than 3 million homeowners are now behind on their mortgage payments and are threatened with foreclosure. A Housing Predictor survey in March found that the over-whelming majority of respondents believe Congress will fail in its attempts to solve the national real estate crisis. Foreclosures are forecast to increase to total more than 5.6 million units through 2011.
Some 25% polled said they believe things would improve in a year or less. Housing Predictor regularly surveys consumers on real estate related issues, and provides more than 250 local housing market forecasts in all 50 U.S. states. The data on which forecasts are issued are independently gathered by researchers from thousands of sources throughout the nation. Markets are constantly monitored by researchers to keep visitors up to date on changing market conditions.
The online survey serves to show that despite the turmoil in the nation's real estate markets, triggered by the credit crisis most believe conditions will improve in a short time span. Only 28% of all respondents said they believe it will take five years or longer for credit market conditions to improve the housing market.
An unprecedented epidemic of foreclosures has led to lower home prices in the over-whelming majority of the country. As many as 1 out of 3 homes in some especially hard hit areas listed for sale are foreclosures, damaging communities and housing values.
A majority of economists recently surveyed say the nation is either in a recession or at least close to experiencing one. Rising gasoline prices have triggered the highest food inflation the country has experienced since 1992, which was during the last major real estate recession.
Congress is dealing with a series of proposals to assist some homeowners threatened with foreclosure. But more than 3 million homeowners are now behind on their mortgage payments and are threatened with foreclosure. A Housing Predictor survey in March found that the over-whelming majority of respondents believe Congress will fail in its attempts to solve the national real estate crisis. Foreclosures are forecast to increase to total more than 5.6 million units through 2011.
Some 25% polled said they believe things would improve in a year or less. Housing Predictor regularly surveys consumers on real estate related issues, and provides more than 250 local housing market forecasts in all 50 U.S. states. The data on which forecasts are issued are independently gathered by researchers from thousands of sources throughout the nation. Markets are constantly monitored by researchers to keep visitors up to date on changing market conditions.
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