Archive for May, 2009
Builder Confidence Continues To Rise In May
May 28th, 2009 categories: Our Market
|
|
||
|
May 18, 2009 – Builder confidence in the market for newly built, single-family homes improved for a second consecutive month in May to the highest level since September of 2008, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI), released today. The HMI rose two points to 16 this month.
“Builders are responding to what they perceive to be some of the best home buying conditions of a lifetime,” said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla. “You’re not likely to get a better deal in terms of mortgage rates than what’s available right now. Combine that with the affordable prices, multitude of home choices and $8,000 tax credit for first-time buyers that are now available, and you have a very appealing set of reasons to make a move.”
“The fact that the May HMI continued to tick up from April’s five-point increase provides confirming evidence that the improved confidence level was no fluke,” added NAHB Chief Economist David Crowe. “This continued increase indicates that home builders feel we’re at or near the bottom of the market and that positive signs lie ahead for builders and potential home buyers, provided that builder access to production credit significantly improves.”
Crowe also noted that recent announcements by the Department of Housing and Urban Development that would enable home buyers to use the new $8,000 tax credit at the closing table are especially encouraging. “We appreciate Secretary Donovan’s efforts to make the tax credit more useful to buyers by addressing the biggest hurdle to first-time purchasers – having enough cash for a suitable down payment,” he said.
Derived from a monthly survey that NAHB has been conducting for more than 20 years, the NAHB/Wells Fargo HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.
Two out of three of the HMI’s component indexes rose in May. The index gauging current sales conditions rose two points to 14, while the index gauging sales expectations for the next six months rose three points to 27. The index gauging traffic of prospective buyers remained unchanged, at 13.
Regionally, the Northeast posted a three-point gain in its HMI score, to 18, while the South posted a one-point gain to 18, the West rose four points to 12, and the Midwest held even at 14.
EDITOR’S NOTE: The NAHB/Wells Fargo Housing Market Index is strictly the product of NAHB Economics, and is not seen or influenced by any outside party prior to being released to the public. HMI tables can be accessed online at: www.nahb.org/hmi. More information on housing statistics is also available at: www.housingeconomics.com.
|
| Discussion: No Comments »
New Featured Home by JB Home Sellers
May 26th, 2009 categories: Our Market
CHARMING TOWNHOME IN SAN ELIJO HILLS
Once in a while, a tremendous value that’s just too good to miss comes along. That describes our latest gem located in the heart of San Elijo Hills, an award winning master plan on the cusp of Carlsbad and San Marcos, CA. Our home is located in the Village Square community, a top selling neighborhood within the master plan.
Walk to restaurants and groceries, boutique and retail shops. Brand new schools a stone’s throw and a beautiful planned community that is a shining star of San Diego County.
This home has been upgraded in every corner- Stainless Steel appliances, Granite counters in Kitchen and Baths, Hickory hard wood floors are just the beginning… Bountiful Storage and epoxy garage floors ice the cake and it’s all yours for a mere $359,900- A Steal in ANY Market!!
This home is already getting tons of action. Don’t wait! Call us today!
Visit our Contact page and reference Village Square 
| Discussion: No Comments »
Loan Modifications Hard to Get- San Diego Business Journal Excerpt
May 5th, 2009 categories: Our Market
As homeowners sink further underwater — meaning they owe more than the falling value of their homes — inquiries about loan modification services are skyrocketing.
“We get 100 calls a week from people who want to do loan modifications,” said Matt Battiata, owner of Battiata Real Estate Group, with 15 real estate agents, who began offering free loan modification services last month. “Out of 100, we’ll probably do 10. The reason is we’re honest and upfront with people about whether they qualify.”
He says many homeowners don’t qualify because they either earn too much or too little.
“There is a strict criterion on who qualifies. If you make too much money, they say, ‘Yeah, you’re upside-down, but it looks to us like you can afford to make pay-ments,’ ” he said.
“If you don’t make enough money, they’ll say, ‘You wouldn’t make payments anyway, so we’re not going to do it.’ ”
Battiata cautions that loan modifications are only for those owners who want to stay in their home.
“If you qualify and the payment is comfortable and want to live there long-term, then you are a perfect candidate. But … the banks are not going to drop your balance.”
Many Default
Of homeowners who seek loan modifications, most end up defaulting anyway, says mortgage broker Mark Goldman, who lectures at San Diego State University.
“Banks aren’t writing down principal,” he said.
In some cases, the banks are just adding the fees to the loan, he says.
Homeowners who couldn’t afford the payment before, won’t be able to afford the modified loan.
“The bank is saying, ‘If I do agree with modification I have to have a high confidence you’ll be able to fulfill the revised conditions,’ ” he said.
Each financial institution has different policies. The willingness to modify loans depends on the institution that owns the note.
“Some companies are more consumer friendly than others,” Goldman said. “But the expectation of a reduced loan balance is unreasonable.”
Legal Ease
Kerry Steigerwalt’s Pacific Law Center, a San Diego firm with 30 attorneys, launched a loan modification department in December and takes 150 cases a month.
“We’re handling 600 cases right now,” said supervising attorney Elmer Heap. The firm has closed only 30 cases.
It charges between $2,200 and $6,000, depending on the complexity of case and mortgage amount.
If the negotiations are not successful, the firm will refund a portion of the fee.
Heap says it’s closed only two cases where the principal was reduced. In both, his clients were living on fixed incomes and his firm convinced the lenders that they should have never been approved for loans.
Most successful cases result in a lower interest rate for a two- to five-year period. The rate then increases before locking in, he says.
In some cases, lenders put the client on lower payments for a three-month trial.
“The lender can see if clients can meet loan obligation, then the loan modification offer will be officially made and put in place.”
He says no one should think that loan modifications are easy to obtain.
“It is a very (difficult) process and it takes time,” he said.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
It’s disheartening to hear that banks who have taken billions of dollars in taxpayer money are unwilling to work with the same people footing the bill for their mistakes. They are not helping to stabilize the housing sector by thwarting the onset of new foreclosures- in fact, I am suspicious that they intend to capitalize on the unfortunate events facing their borrowers.
I’m not usually the ‘Conspiracy Theory’ type but I must admit that I am losing faith rapidly in the ethically bankrupt banking sector. Once again, we the consumer, get stuck both with the effects of poor business decisions and the bill to rectify them and all the talk about lenders reaching out to borrowers to help forestall impending doom is just media fodder with no more reality than your typical urban legend.
Will you write to your lender and your legistlature to complain that you are not getting what you’ve paid for with your billions invested in TARP? I will.
Jennifer Bonasia
| Discussion: 1 Comment »
