Trending Upward? U.S. Home Prices Improve for Fourth Consecutive Month

Trending Upward? U.S. Home Prices Improve for Fourth Consecutive Month
Print Article
RISMEDIA, July 29, 2009-Data through May 2009, released by Standard & Poor’s for its S&P/Case-Shiller Home Price Indices, one of the leading measures of U.S. home prices, show that, although still negative, the annual rate of decline of the 10-City and 20-City Composites improved for the fourth consecutive month in 2009.

The 10-City and 20-City Composites declined 16.8% and 17.1%, respectively, in May compared to the same month last year. These values are improvements over April’s data, which show annual declines of 18.0% and 18.1%, respectively. After 16 consecutive months of record annual declines, beginning in October 2007 and ending in January 2009, the indices have now shown four consecutive months of improvement in annual returns.

“The pace of descent in home price values appears to be slowing,” says David M. Blitzer, chairman of the Index Committee at Standard & Poor’s. “There is a clear inflection point in the year-over-year data, due to four consecutive months of improved rates of return, after the steep decline that began in the fall of 2005. In addition to the 10-City and 20-City Composites, 17 of the 20 metro areas also saw improvement in their annual returns compared to those of April. Looking at the monthly data, 13 of the 20 metro areas reported positive returns; and the 10-City and 20-City Composites reported positive returns for the first time since the summer of 2006. To put it in perspective, this is the first time we have seen broad increases in home prices in 34 months. This could be an indication that home price declines are finally stabilizing.”

“While many indicators are showing signs of life in the U.S. housing market, we should remember that on a year-over-year basis home prices are still down about 17% on average across all metro areas, so we likely do have a way to go before we see sustained home price appreciation,” Blitzer added.

As of May 2009, average home prices across the United States are at similar levels to where they were in the middle of 2003, indicating that the three years of appreciation that occurred from 2003-2006 were all given back in the following three years. From the peak in the second quarter of 2006, the 10-City Composite is down 33.3% and the 20-City Composite is down 32.3%.

In terms of annual declines, the numbers remain relatively somber with all metro areas and the two composites in negative territory, and 16 out of the 20 metro areas are reporting double digit declines. Las Vegas, Los Angeles, Miami, Phoenix, Seattle and Tampa posted their lowest index levels in May since their respective peaks. From peak to trough Phoenix and Las Vegas are the worst off, down 54.5% and 53.4%, respectively. More upbeat news is seen in the monthly data; Dallas and Denver have reported three consecutive months of positive returns. Atlanta, Boston, Cleveland, San Francisco and Washington D.C. each reported two consecutive months of positive returns. Eight of the 13 MSAs reporting positive monthly returns for May were greater than +1.0%.

For more information, visit www.standardandpoors.com.

Read more: http://rismedia.com/2009-07-28/trending-upward-us-home-prices-improve-for-fourth-consecutive-month/#ixzz0MfSx7bJM

Homeowner’s Security Survey

If you are interested in making your home more secure AND saving
money on your homeowner’s insurance rates, we offer another free
service to residents:

For Safety - The Security Survey is an inspection conducted on
your home by a certified Crime Prevention Officer. The officer
checks the interior and exterior of your home and discusses how
better to secure the premises. The officer draws up a plan specific to
your home, making recommendations about subjects such as locks,
lighting, landscaping, etc.

For an Insurance Discount - Texas law allows for a 5% insurance
rate discount if the residence meets certain basic requirements. If
your home meets these requirements, the Crime Prevention Officer
submits a report to the Texas Insurance Board for your rate reduction.
If your home fails to meet the requirements, the officer gives you a
report indicating how to bring it up to the insurance standards.
That same Texas law allows for a 15% discount if the residence
meets the basic requirements as well as certain advanced requirements.
This level requires a monitored alarm system connected to specific
windows and doors in the home.

For further information on this service, contact Corporal Mike
Bedrich at 817.748.8137. Corporal Bedrich will get forms to you
to fill out in advance and set an appointment to meet at your home
for the inspection. Please be aware that the insurance discount is not
immediate - this is one government entity dealing with another!
Colleyville Police Department can also provide this service.
Please contact Officer Bill Hudgins at (817) 503-1230 or by email
at hudginsb@ci.colleyville.tx.us

Best regards,

Rhonda Moore
Lieutenant, Community Initiatives Unit
871.748.8349
Southlake DPS


http://www.kencemedia.org/www.peelinc.com/newsletters/0704TM.pdf

From the Brochure: "The Four R's of Short Sales...and More - The Transparent Approach to a Real Estate-Related Crisis"
Homeowners... Recovering and regaining control

Q. What are my options as a home seller when my property is in or heading toward default?
A. In the event that you have been delinquent in paying your mortgage or anticipate that you will not be able to make payments moving forward, your options will vary based upon several factors or variables that are specific to you and your property. Always remember that each possible resolution will be evaluated on a case-by-case basis by all parties involved. When considering your options, you should take into account:

the amount of equity you have in your property compared to the outstanding loan balance
the additional financial resources you may be able to bring to bear
whether or not you live in a homestead state, and the nature and amount of the homestead exemption
and/or the amount of private mortgage insurance you have.
All of these factors should be taken into account along with many other variables and special conditions.
The most important decision you need to make is to "make a decision." Typically, when homeowners avoid confronting the serious lifestyle and financial consequences of defaulting on their mortgage, they end up with a significantly more deleterious outcome than they would have, had they taken charge of their own destiny while they could.

Once you decide to take action, we recommend that you contact a lawyer and a real estate agent qualified to assist with your special real estate needs. Top 5 in Real Estate members are not just committed to helping you pursue the potential option of a short sale, but to encouraging you to fully consider all other options that may be available.

Early on in the potential foreclosure process, all homeowners should not only contact an attorney, but also research all potential guidance and assistance available from the government, including the U.S. Department of Housing and Urban Development (HUD). HUD's Guide to Avoiding Foreclosure may be particularly helpful. HUD's toll-free telephone number is (800) 569-4287. Not all homeowners, however, can qualify for certain HUD programs. Whatever guidance you seek as a homeowner, we recommend, at a minimum, that you also carefully consider each of the following questions and answers:

Questions What is a better or more likely outcome for me and why?

A short sale or a foreclosure?
A short sale or a repayment plan?
A short sale or a forbearance plan?
A short sale or a loan modification?
In the case of an FHA loan, a short sale or a partial claim?
A short sale or a short sale/assumption agreement?
A short sale or a deed-in-lieu of foreclosure?
A short sale or a bankruptcy? Answers: Any and all of the above-mentioned options pursued by homeowners should take into account their:

individual present and projected future financial circumstances
short- and long-range lifestyle goals
concerns over credit rating
desire to remain living in their present home
a complete understanding of the impact each available option might have in comparison to all other options being considered
In order to best contextualize or prioritize one's various opportunities or limitations with all other options, it is advisable that an attorney or other suitable counsel be engaged. Such counsel is vital in order to properly weigh all legal, financial, tax and lifestyle implications surrounding each option. Since this brochure principally focuses upon the subject of short sales as just one alternative, it is important to note that short sales usually benefit home sellers because they not only stop mortgage foreclosure, but typically prevent the lender from suing for deficiency. Deficiency refers to the difference between the outstanding loan amount and what the net proceeds are from the sale of the home, or in some cases, simply what the proceeds are that the lender receives from the sale of the home. During their short sale negotiating process, it is vital that homeowners have their attorney ensure that the lender agrees to forego suing for any monies that are written off due to the short sale.

For more on the subject go to:

http://top5inrealestate.com/pages/short-sales


Limit of Liability/Disclaimer of Warranty: The information and opinions expressed herein are presented with the understanding that they do not represent any or all of the opinions of the Top 5 in Real Estate member making this publication available to you. The information contained herein is not intended to be a comprehensive discussion of the strategies or concepts mentioned. Nor is any information or data discussed intended as tax, investment or legal advice. In pursuing any concept or idea presented, you should rely on your own due diligence and on your own attorneys, accountants and other professionals to determine if such ideas or concepts are appropriate for you. Although information herein has been obtained from sources believed to be reliable, RISMedia, Inc., the Top 5 in Real Estate Network® and its local member do not guarantee its accuracy or completeness and accept no liability for any direct or consequential losses arising from its use. RISMedia, Inc., the Top 5 in Real Estate Network® and its local member assumes no responsibility for any errors, omission or damages arising from use of information contained herein.

© 2009 RISMedia's Top 5 in Real Estate Network®

Maytag Recalls Refrigerators
March 10, 2009

The U.S. Consumer Product Safety Commission, in cooperation with the firm named below, today announced a voluntary recall of the following consumer product. Name of product: Maytag®, Jenn-Air®, Amana®, Admiral®, Magic Chef®, Performa by Maytag® and Crosley® brand refrigerators.

Hazard: An electrical failure in the relay, the component that turns on the refrigerator's compressor, can cause overheating and pose a serious fire hazard. Description: The recall includes certain Maytag®, Jenn-Air®, Amana®, Admiral®, Magic Chef®, Performa by Maytag® and Crosley® brand side by side and top freezer refrigerators. The affected refrigerators were manufactured in black, bisque, white and stainless steel.

Sold at: Department and appliance stores and by homebuilders nationwide from January 2001 through January 2004.

FOR MORE INFORMATION ON MODELS AND SERIAL #'S - CLICK LINK BELOW

Maytag Recalls Refrigerators

provided by
Tammi Burgee * Senior Account Manager * 214 -732- 5999 * tammi.burgee@fnf.com www.homewarranty.com * 1-800-862-6837

Housing starts plunge to another record low

Home construction falls 33% in 2008, plumbing lowest level in at least 50 years
By Rex Nutting, MarketWatch

Last update: 10:22 a.m. EST Jan. 22, 2009Comments: 111WASHINGTON (MarketWatch) -- Closing out the third year of the housing bust, construction on new homes took another turn for the worse in December, falling more than 15% to a seasonally adjusted annual rate of 550,000, the lowest on record, the Commerce Department reported Thursday.

Permits to build single-family homes also fell, dropping 12.3% to 363,000 last month, while total permits including apartments dropped 10.7% to a 549,000 annual rate. The figures represented record lows for both single-family and total permits.
Building permits are considered a more reliable guide to the state of the housing market, because they are less affected by weather conditions than the figures on housing starts.

"The financial market shockwave felt in the fall has clearly brought the housing industry to its knees," wrote Stephen Stanley, chief economist for RBS Greenwich Capital. "Builders have essentially closed up shop for a while until the storm blows over."

Since June, starts have plunged 49%. Since the peak of activity three years ago, starts are down 76%.
For all of 2008, housing starts fell 33% to 904,000, the lowest pace of new construction since the government began keeping records in 1959. Building permits fell 36% in 2008 to 892,500.
In all of 2007, 1.355 million homes were started. In 2006, 1.8 million homes were started.

Similar but not identical government data show construction in 2008 was at the lowest level since World War II.
The report was much worse than expected for a second consecutive month. Economists surveyed by MarketWatch had looking for a smaller drop, to an annual rate of about 600,000, in the thinking that November's 15% decline in starts wouldn't be repeated. It was.

The large declines in the past few months could be good news for the economy, on the principle that when you are in a hole, the first thing to do is to stop digging, said UBS economists Maury Harris and Jim O'Sullivan ahead of the report.
"The more starts plunge now, the quicker home inventories are likely to be reduced, potentially limiting the ultimate drop in home prices (the main cause of the financial crisis)," they wrote.

http://www.marketwatch.com/News/Story/home-prices-fall-record-18/story.aspx?guid=%7BC1CBBE79%2D0828%2D42B0%2D88B3%2D41F71AFB85B3%7D

Severe Weather Closings

Sorted by Category, then Organization

Charter Schools,Colleges,Other Schools,Private Schools,Public Schools

click on the link: http://media.myfoxdfw.com/closings/

Down Payment Assistance

DPAGroundSwell2 was launched today to coincide with the introduction of H.R. 600, FHA Seller-Financed Downpayment Reform Act of 2009, by Representative Al Green (D-TX). H.R. 600 is the 2009 version of last year's bill (H.R. 6694) that would restore seller-funded downpayment assistance (DPA).

Reformed DPA will help stimulate the housing market by providing working-class Americans with a path to homeownership and generate $150 billion in home sales this year. Purchasing a home now puts homebuyers in a position to build equity as markets recover.

CONGRESS INTRODUCES BILL THAT WOULD REINSTATE DOWNPAYMENT ASSISTANCE: NEHEMIAH RESPONDS

- Bill Would Broaden Opportunities for Sustainable Homeownership Without Government or Taxpayer Dollars -

Sacramento, CA, January 16, 2009 -- The following statement was issued today by Scott Syphax, president and CEO of the Nehemiah Corporation of America in response to H.R. 600, a bill introduced in Congress that would reinstate seller-funded downpayment assistance (DPA). Prior to the October 1, 2008 ban on DPA, Nehemiah was the oldest and largest provider of downpayment assistance.

"There is an overlooked solution to today's housing crisis and fortunately several members of Congress recognize the role DPA plays in getting us there. We commend Congressman Al Green [and additional members of Congress] for working tirelessly to support a bill (H.R. 600) that creates opportunities for sustainable homeownership, which serves as the cornerstone to strengthening a crumbling housing market and breathing life back into the economy. With foreclosures on the rise and banks maintaining their stranglehold on credit, DPA offers a simple solution without spending a single government or taxpayer dime according to the Congressional Budget Office. Further, it enables worthy families to take advantage of depressed home prices, therefore reducing the glut of homes on the market. We urge Congress to reach across the aisle and prioritize broadening opportunities for responsible homeownership in America by reinstating DPA."

http://www.nehemiahcorp.org/
Copyright © 2008 Nehemiah Corporation of America. All Rights Reserved

Broker of Texas Sold Team Realty says about DPS:

This program alone will really kick off the market!

By losing the DPA it is likely to be one of the biggest reason that people are not buying. They don't have enough cash to make the down payment.
I would say that 99.9 percent of our clients that used this help are still in their homes.

1- Because they had a good job and credit, just not cash. If we lend smart we will keep our people in homes and buying homes.

2- This will help investors the most.

3- This will bring back the under 200K buyers by the droves.