ProSoldRealty

By 2015 projections in our industry
What's In, Out of Smaller Homes?
by Broderick Perkins
Buy a super-sized, outdated home today and you could have a tough time selling it when it's time to move on.

By 2015, new homes will be 10 percent smaller, greener and packed with more technology and "universal" features than today's homes, according to a new study by the National Association of Home Builders.

The NAHB's"The New Home in 2015" alludes to the economic downturn for ratcheting up a "less is more" movement that includes everything from homes designed with fewer frivolities to small "pocket neighborhoods" with small homes.

The study says the lousy economy is the force behind the changing characteristics, features and sizes of homes to come, as well as the reason for the record low numbers of homes being built today.

The findings are answers from 238 home building professionals, among them home builders, architects, designers, manufacturers and others who say the average, new single-family detached home in 2015 will be about 2,152 square feet, 10 percent smaller than the average size of single-family homes started in the first three quarters of 2010.

That may yet be too large, given more than 60 percent of all U.S. households today are comprised of only one or two people, according to the U.S. Census Bureau.
Smaller homes cost less to build and maintain and today's consumers are focused on reducing heating and cooling costs, they've don't have the equity to buy up, and appreciation probably won't come to their rescue for years. The aging population and tight mortgage money are also prompting consumers to buy smaller.

The Census Bureau also says the average size of single-family homes peaked in 2007, at 2,521 square feet, was virtually unchanged in 2008, and declined in 2009 to 2,438 square feet. Early data for 2010 shows a further decline, down to 2,377 square feet.

The report also says:
• The living room is dead. The living room will either vanish, merge with a "great room" or the kitchen, or become a smaller parlor, retreat, library or music room. Only 5 percent of those polled said the living room would remain as it is.
• Room for less. Other rooms to get the boot will include a third bathroom, fourth bedroom, dining room, three-car garage, media room and a second master bedroom suite.
• Greener living. Expect "low-e" windows, engineered wood beams, joists, and trusses, water efficient features and whole-home Energy Star ratings.
• Design for all. More technological and "universal" features will help better adapt the home for more people from kids to older people and people with disabilities.

Housing called key to recovery - NOLA.com

2011-03-27T14:30:00.000-05:00

Housing called key to recovery - NOLA.com

GOP Set to Begin Chipping Away at Fannie, Freddie - WSJ.com

2011-03-25T14:28:00.000-05:00

GOP Set to Begin Chipping Away at Fannie, Freddie - WSJ.com

New mortgage roadblocks on horizon | Inman News

2011-03-23T14:22:00.001-05:00

New mortgage roadblocks on horizon | Inman News

Obama has a mortgage plan (or three) worth reading - Fortune Finance

2011-03-21T14:20:00.001-05:00

Obama has a mortgage plan (or three) worth reading - Fortune Finance

:: Baton Rouge Business Report :: Daily Report AM

2011-03-19T11:03:00.000-05:00

:: Baton Rouge Business Report :: Daily Report AM

:: Baton Rouge Business Report :: How Baton Rouge measures up

2011-03-17T10:56:00.000-05:00

:: Baton Rouge Business Report :: How Baton Rouge measures up

:: Baton Rouge Business Report :: The next trick

2011-03-15T10:56:00.000-05:00

:: Baton Rouge Business Report :: The next trick

:: Baton Rouge Business Report :: Give ’em a break

2011-03-13T10:55:00.000-05:00

:: Baton Rouge Business Report :: Give ’em a break

How the economy is really doing - Unemployment (1) - CNNMoney.com

2011-03-11T10:54:00.000-06:00

How the economy is really doing - Unemployment (1) - CNNMoney.com

Geithner: Revamp housing in two years - Business - Real estate - msnbc.com

2011-03-09T11:36:00.000-06:00

Geithner: Revamp housing in two years - Business - Real estate - msnbc.com

Forgiven debt such as credit card settlements can trigger a tax bill - USATODAY.com

2011-03-09T10:52:00.001-06:00

Forgiven debt such as credit card settlements can trigger a tax bill - USATODAY.com

Investors, not first-time buyers, lift home sales - Business - Real estate - msnbc.com

2011-03-07T11:35:00.000-06:00

Investors, not first-time buyers, lift home sales - Business - Real estate - msnbc.com

Republicans attack Obama homeowner foreclosure relief - Feb. 25, 2011

2011-03-05T11:34:00.000-06:00

Republicans attack Obama homeowner foreclosure relief - Feb. 25, 2011

Foreclosure sales jump 26% in 2010 - Feb. 24, 2011

2011-03-03T11:33:00.000-06:00

Foreclosure sales jump 26% in 2010 - Feb. 24, 2011

Existing home sales inch up in January - Feb. 23, 2011

2011-03-01T11:32:00.001-06:00

Existing home sales inch up in January - Feb. 23, 2011

Foreclosures spread into previously safe areas - Business - Real estate - msnbc.com

2011-02-18T15:50:00.000-06:00

Foreclosures spread into previously safe areas - Business - Real estate - msnbc.com

The Good News About the January's Surprisingly Weak 32,000 Job Growth - The Curious Capitalist - TIME.com

2011-02-16T15:53:00.000-06:00

The Good News About the January's Surprisingly Weak 32,000 Job Growth - The Curious Capitalist - TIME.com

:: Baton Rouge Business Report :: U.S. unemployment falls to 9%

2011-02-14T15:55:00.000-06:00

:: Baton Rouge Business Report :: U.S. unemployment falls to 9%

Foreclosed Homeowners Go to Court on Their Own - NYTimes.com

2011-02-11T15:58:00.000-06:00

Foreclosed Homeowners Go to Court on Their Own - NYTimes.com

New home sales rise 17.5% in December to 8-month high - Jan. 26, 2011

2011-02-09T15:48:00.000-06:00

New home sales rise 17.5% in December to 8-month high - Jan. 26, 2011

Who is being helped by Obama's HAMP program? - Feb. 1, 2011

2011-02-07T15:49:00.000-06:00

Who is being helped by Obama's HAMP program? - Feb. 1, 2011

7 mortgage trends to expect in 2011 - Business - Real estate - msnbc.com

2011-01-21T10:46:00.000-06:00

7 mortgage trends to expect in 2011 - Business - Real estate - msnbc.com

Massachusetts Supreme Court voids foreclosures - Jan. 7, 2011

2011-01-19T10:49:00.000-06:00

Massachusetts Supreme Court voids foreclosures - Jan. 7, 2011

Hooray? Higher mortgage rates spurred home sales uptick - Fortune Finance

2011-01-17T10:50:00.000-06:00

Hooray? Higher mortgage rates spurred home sales uptick - Fortune Finance

:: Baton Rouge Business Report :: The bear facts

2011-01-14T11:07:00.001-06:00

:: Baton Rouge Business Report :: The bear facts

:: Baton Rouge Business Report :: Baton Rouge's 10 most expensive home sales of 2010

2011-01-14T11:06:00.001-06:00

:: Baton Rouge Business Report :: Baton Rouge's 10 most expensive home sales of 2010

Subprime lenders remake themselves as fixers - Business - Real estate - msnbc.com

2011-01-14T10:51:00.001-06:00

Subprime lenders remake themselves as fixers - Business - Real estate - msnbc.com

Mortgage modifications may lead to foreclosure - Business - Personal finance - Real estate - msnbc.com

2010-11-16T14:35:00.000-06:00

Mortgage modifications may lead to foreclosure - Business - Personal finance - Real estate - msnbc.com

The Top 10 Places in America Poised for Recovery - Newsweek

2010-11-14T14:37:00.000-06:00

The Top 10 Places in America Poised for Recovery - Newsweek

Home loan demand rises as rates stay low - Business - Personal finance - Real estate - msnbc.com

2010-11-12T14:34:00.002-06:00

Home loan demand rises as rates stay low - Business - Personal finance - Real estate - msnbc.com

What the election means for foreclosures and robo-signing - Nov. 4, 2010

2010-11-10T14:33:00.001-06:00

What the election means for foreclosures and robo-signing - Nov. 4, 2010

Unemployed? Get a federal loan to pay your mortgage - Oct. 5, 2010

2010-10-17T09:53:00.001-05:00

Unemployed? Get a federal loan to pay your mortgage - Oct. 5, 2010

Banks are freezing foreclosures. What does that mean? - Oct. 8, 2010

2010-10-15T09:54:00.001-05:00

Banks are freezing foreclosures. What does that mean? - Oct. 8, 2010

Real Estate Articles - Real Estate Brokerage Articles, Real Estate Investment Articles, and Real Estate Market Articles!

2010-10-13T10:17:00.001-05:00

Real Estate Articles - Real Estate Brokerage Articles, Real Estate Investment Articles, and Real Estate Market Articles!

Castle for a King

2010-10-12T10:45:00.001-05:00

Pro Sold Realty

Pending home sales jumped in August - Business - Stocks & economy - msnbc.com

2010-10-11T10:05:00.001-05:00

Pending home sales jumped in August - Business - Stocks & economy - msnbc.com

5 tips for an autumn home sale | Inman News

2010-10-09T10:09:00.001-05:00

5 tips for an autumn home sale | Inman News

:: Baton Rouge Business Report :: IRS: tax break for homeowners with Chinese drywall

2010-10-07T09:57:00.001-05:00

:: Baton Rouge Business Report :: IRS: tax break for homeowners with Chinese drywall

Fewer mortgages were in default in the second quarter 2010 - Aug. 26, 2010

2010-09-20T15:10:00.001-05:00

Fewer mortgages were in default in the second quarter 2010 - Aug. 26, 2010

Home resale fees: rip-off or not? - Aug. 23, 2010

2010-09-18T15:11:00.001-05:00

Home resale fees: rip-off or not? - Aug. 23, 2010

Homeowners feel stress of life 'underwater' - Business - Real estate - msnbc.com

2010-09-16T15:11:00.001-05:00

Homeowners feel stress of life 'underwater' - Business - Real estate - msnbc.com

A reward for responsible homeowners - Sep. 7, 2010

2010-09-14T15:08:00.002-05:00

A reward for responsible homeowners - Sep. 7, 2010

Home prices creep up in second quarter of 2010 - Aug. 11, 2010

2010-08-25T10:43:00.002-05:00

Home prices creep up in second quarter of 2010 - Aug. 11, 2010

:: Baton Rouge Business Report :: The missing link

2010-08-23T10:54:00.001-05:00

:: Baton Rouge Business Report :: The missing link

:: Baton Rouge Business Report :: A tale of two malls

2010-08-21T10:56:00.001-05:00

:: Baton Rouge Business Report :: A tale of two malls

Fewer U.S. homeowners have ‘underwater mortgages’ - Business - Real estate - msnbc.com

2010-08-17T10:45:00.000-05:00

Fewer U.S. homeowners have ‘underwater mortgages’ - Business - Real estate - msnbc.com

Mortgage rates decline to lowest level in decades - Aug. 12, 2010

2010-08-15T10:44:00.001-05:00

Mortgage rates decline to lowest level in decades - Aug. 12, 2010

Refinancing mortgage often smart even if you have to pay - USATODAY.com

2010-08-13T10:47:00.002-05:00

Refinancing mortgage often smart even if you have to pay - USATODAY.com

200,000 could lose out on homebuyer tax credit - Jun. 24, 2010

2010-07-21T11:23:00.000-05:00

200,000 could lose out on homebuyer tax credit - Jun. 24, 2010

$100,000 can buy A LOT of home

2010-07-19T11:03:00.000-05:00

Full Agent Report

Richmond Place beauty in Denham Springs

2010-07-17T11:05:00.000-05:00

Full Agent Report

Great buy in Rosedale, Louisiana

2010-07-15T11:06:00.000-05:00

Full Agent Report

Just $98 per square foot in area 4

2010-07-13T11:02:00.001-05:00

Full Agent Report

"Charlestowne" Santa Maria

2010-07-11T11:03:00.001-05:00

Full Agent Report

Baton Rouge, Recession Proof?

2010-07-09T10:59:00.000-05:00

GBRMLS Information

:: Baton Rouge Business Report :: Economic development ranks at the top

2010-06-30T09:30:00.000-05:00

:: Baton Rouge Business Report :: Economic development ranks at the top

:: Baton Rouge Business Report :: New unemployment claims drop for fourth week

2010-06-27T09:26:00.000-05:00

:: Baton Rouge Business Report :: New unemployment claims drop for fourth week

:: Baton Rouge Business Report :: U.S. foreclosures down 2% from last year

2010-06-24T09:15:00.000-05:00

:: Baton Rouge Business Report :: U.S. foreclosures down 2% from last year

Supplies of starter homes shrinking -

2010-06-20T09:14:00.000-05:00

Supplies of starter homes shrinking - May. 11, 2010

Applications for mortgages hit a 13-year low - Real estate- msnbc.com

2010-06-18T09:57:00.000-05:00

Applications for mortgages hit a 13-year low - Real estate- msnbc.com

Boom in real estate auctions -

2010-06-16T09:56:00.000-05:00

Boom in real estate auctions - May. 25, 2010

Where is the CRE/CMBS crash? - Jun. 8, 2010

2010-06-14T09:55:00.000-05:00

Where is the CRE/CMBS crash? - Jun. 8, 2010

3 Tips for avoiding foreclosure prevention scams - Jun. 4, 2010

2010-06-12T09:54:00.000-05:00

3 Tips for avoiding foreclosure prevention scams - Jun. 4, 2010

Nice home for 100k

2010-06-10T09:51:00.000-05:00

Full Agent Report

New Price in Lake at White Oak

2010-06-10T09:48:00.000-05:00

Full Agent Report

New Listing in Lake at White Oak

2010-05-27T12:10:00.001-05:00

http://tourfactory.com/621021

Pending home sales rise 5.3 percent in March - Real estate- msnbc.com

2010-05-13T09:06:00.000-05:00

Pending home sales rise 5.3 percent in March - Real estate- msnbc.com

The healthiest real estate agent? | Inman News

2010-04-26T16:59:00.000-05:00

The healthiest real estate agent? | Inman News

Housing starts hit highest level since Nov. 2008 - Real estate- msnbc.com

2010-04-23T16:57:00.000-05:00

Housing starts hit highest level since Nov. 2008 - Real estate- msnbc.com

Obama plan helps 228,000 delinquent homeowners - Apr. 14, 2010

2010-04-21T16:56:00.000-05:00

Obama plan helps 228,000 delinquent homeowners - Apr. 14, 2010

Building permits up 7.5% in March - Apr. 16, 2010

2010-04-19T16:54:00.001-05:00

Building permits up 7.5% in March - Apr. 16, 2010

Mortgage interest rates: Going up - Mar. 24, 2010

2010-04-03T10:29:00.000-05:00

Mortgage interest rates: Going up - Mar. 24, 2010

Bank of America to cut some trouble mortgage balances - Mar. 24, 2010

2010-03-30T10:29:00.001-05:00

Bank of America to cut some trouble mortgage balances - Mar. 24, 2010

170,000 borrowers receive permanent mortgage modifications - Mar. 12, 2010

2010-03-25T10:32:00.001-05:00

170,000 borrowers receive permanent mortgage modifications - Mar. 12, 2010

B.R. markets resilient during downturn

2010-03-01T11:53:00.000-06:00

The housing market in metro Baton Rouge and Louisiana continued to outperform real estate nationally in 2009. Malcolm Young, president and CEO of Louisiana Realtors, says the average sale price statewide was down 1.6% when compared with 2008, while Baton Rouge prices were down 3.9%. That figure compares quite favorably with a national average drop of 10% in 2009. "We have a good stable market," says Young, who is on a media tour around the state. Young and David McKey, broker/owner of Coldwell Banker One in Baton Rouge and a regional vice president for Louisiana Realtors, attribute the stable market to two factors: There was no major overbuilding in Louisiana, and jobs are still being added all over the state. McKey says home values may have slightly declined in Baton Rouge over the past year due to concerns about the national housing market spilling over locally. But Ascension and Livingston parishes have remained strong markets. Indeed, demand from those markets has gobbled up inventory to the point where the average house was on the market for 87 days in the fourth quarter of 2009, compared with 96 days in the year before. McKey and Young say they expect 2010 to be a stronger year than 2009 for the housing market on state and local levels, thanks to record-low interest rates, an improving economy and the continued tax credit for first-time homebuyers.—Timothy Boone

Q&A: Any bright spots in the economy? - Answer Desk- msnbc.com

2010-02-26T13:37:00.000-06:00

Q&A: Any bright spots in the economy? - Answer Desk- msnbc.com

One year later: Lasting loan help for 116,000 homeowners - Feb. 17, 2010

2010-02-23T13:36:00.000-06:00

One year later: Lasting loan help for 116,000 homeowners - Feb. 17, 2010

Home construction rebounds in January; permits increase 2.8% - Feb. 17, 2010

2010-02-20T13:34:00.001-06:00

Home construction rebounds in January; permits increase 2.8% - Feb. 17, 2010

Bobby Jindal Writes A Book. Does This Mean He's Running For President?

2010-02-18T13:29:00.000-06:00

Bobby Jindal Writes A Book. Does This Mean He's Running For President?: "That's the question raised by the 2012-GOP-watch blog Race 4 2012 in relaying the news that Louisiana Gov. Bobby Jindal (R) will publish a book, co-written by conservative author Peter..."

Outlook for Housing Demand

2010-01-14T10:42:00.000-06:00

Unemployment
Unemployment continues to be a burden to many homeowners, and is probably the most salient driver of additional
foreclosures. The most current Employment Situation report released by the Bureau of Labor Statistics showed that job
losses were moderating, with most of the moderation occurring in temporary help services and health care jobs.
Traditionally, jobs added in temporary help services have foreshadowed further hiring in the future. If this is the case,
then in future reports we should see additional job growth in categories that could chip away at the current level of
long-term unemployed workers, which increased by 293,000 to 5.9 million in the month of November.
The high levels of long-term unemployed workers will be important to watch. When the economy produces more fulltime
jobs, cash inflows to households will become more stable and unemployed workers will spend less time between
jobs. This should decrease the likelihood of current homeowners defaulting on their loans while prompting potential
homebuyers who were sidelined by uncertainty in the economy to take advantage of current affordability in housing.
Proposed Changes for the FHA
On December 2, Housing and Urban Development Secretary Shaun Donovan testified before the House Financial
Services Committee. In his testimony he proposed a number of changes to the Federal Housing Administration (FHA),
which he oversees. Under the proposed changes, the FHA will:
• Step up enforcement of its standards;
• Require lenders to indemnify the FHA for their own failures to meet FHA requirements;
• Hold lenders accountable nationally for their origination quality and compliance with FHA policies rather than on
a branch-by-branch basis;
• Reduce the maximum seller concession from 6% to 3%;
• Raise the minimum borrower FICO score;
• Increase the up-front cash requirement for borrowers either through increasing the required down payment, the
current minimum is 3.5%, or by requiring the borrower to pay more fees;
• Increase FHA insurance premiums.
The proposed changes will be announced by the end of January.
1 Radar Logic defines “motivated” sales as sales at foreclosure auctions and REO sales by financial institutions. “Other” sales
are all sales not considered to be “motivated”.
www.radarlogic.com
4
On December 7, the FHA announced new lending rules that limit the number of buyers in condo buildings that can get
loans insured by the agency. The rules also put restrictions on buildings with poor finances, too many delinquent
owners and a high number of rentals. Under the new regime, only half of a condo building’s units can have FHAbacked
loans, with some exceptions. The limit falls to 30% in 2011. Another new rule requires at least 30% of units in
new buildings be pre-sold before the agency insures any loans. That number will rise to 50% in 2011. Clearly, the
new rules could have a chilling effect on housing demand in the densely-populated urban centers of New York, Los
Angeles and Miami, which have high concentrations of condominiums.
Mortgage Rates / Fed Purchases of Mortgage Debt
Recent stability and price appreciation in the housing market has been in large part due to the efforts made by the
Federal Reserve. In an address to the Economic Club of Washington, DC, on December 7th, Chairman Bernanke
reiterated that “…purchasing unprecedented volumes of mortgage-related securities and Treasury debt…” has
provided liquidity and favorable conditions to homebuyers. Much of these purchases have come from Fannie Mae and
Freddie Mac, resulting in continued availability of financing to homebuyers during a time where credit can be scarce.
The Federal Reserve has also made it clear that the target funds rate will stay at its lowest effective range, 0% to ¼%,
until the economy is capable of sustaining growth on its own.
The maintenance of the current target rate will be a positive force on housing prices in 2010. Other drivers of housing
demand, which include low prices and the current tax credit, will also persist in 2010 in addition to a strengthening
economy and moderate job growth. Low interest rates will also mitigate negative effects from ARM resets that are tied
to the one-year Constant Maturity Treasury.

Trends in Home Prices and Home Sales

2010-01-12T10:41:00.000-06:00

The 25-MSA Composite price declined only 0.7% during the month ending October 15, the smallest decline for that
time period since 2005. Prices increased month-over-month in 11 MSAs, mostly in the West Coast and Southeast
regions where seasonal factors are less salient than in other regions. Three- and six-month trends in the 25-MSA
Composite were also stronger than they have been at that time of year since 2005 (see Exhibit 3).
One-, three- and six-month trends in 25-MSA transaction counts were stronger in October 2009 than they have been
in any other October since the beginning of Radar Logic’s data in 2000 (see Exhibit 4). The 25-MSA transaction count
usually falls in August, September and October. This year, the 25-MSA transaction count has increased or remained
constant every month since January.
Transactions increased over the month ending October 15 in 22 of the 25 MSAs tracked by Radar Logic. Transactions
increased in all regions, with the exception of the Northeast, where Philadelphia (-21.2%) and Boston (-11.5%)
exhibited contraction in sales. New York outperformed its neighbors to the north and south, posting the first increase in
sales for the period since the beginning of Radar Logic data in 2000.
As the RPX values covered in this report correspond to transactions in early October, before Congress voted to extend
the $8,000 first-time homebuyer tax credit, the uptick in RPX transaction counts may reflect a rush of sales in advance
of the tax credit’s original November 30 deadline. In early November, Congress extended the program to include all
sales under contract by April 30, 2010 and closed by June 30, 2010.
www.radarlogic.com
3
Both motivated and other sales increased, with motivated sales growing by 7.3% and other sales growing by 6.2%.1
As other sales increased from a higher base volume in mid-September, they increased from 74% of total sales to 75%.
This stability in the mix of motivated and other sales helped stabilize the 25-MSA Composite price. This contrasts with
the trend in September, when motivated sales increased 27% while other sales decreased 5%, resulting in a shift in the
mix of sales toward motivated sales with relatively low prices. This mix shift put downward pressure on the 25-MSA
RPX Composite price.

Tax credit drives home sales

2010-01-10T09:00:00.000-06:00

WASHINGTON (AP) — Extraordinary government efforts to stabilize the housing market are paying off. What happens when the help runs out is anyone's guess.

Sales of previously occupied homes surged in November to the highest level in nearly three years, spurred by federal subsidies for starter homes and a massive Federal Reserve push to drive down mortgage rates.

The strong figures were driven by a race to take advantage of a tax credit of up to $8,000 for first-time homebuyers. The credit has since been extended to next spring, but the government initially planned to end it Nov. 30.

"It was like the end of the world," said real estate agent Stephanie Somers of Re/Max Access in Philadelphia. "All the first-time buyers converged onto that one month."

The pace of home sales is now up 46 percent from its bottom in January and still 10 percent shy of its peak from four years ago, according to data released Tuesday by the National Association of Realtors.

The real estate recovery depends not only on taxpayer dollars but also on the health of the economy at large, which grew at a less robust pace in the third quarter than previously thought.

The economy grew at a 2.2 percent annual pace from July to September, down from an initial reading of 2.8 percent, the government said Tuesday.

Experts think the economy is even stronger now than it was last quarter, but they expect it to ebb again early next year. And that's when the tax credit will wind down and the Fed plans to stop buying mortgage-backed securities, which could raise mortgage rates.

Whether the real estate rebound can continue without the help remains to be seen.

"The housing market recovery can't continue if the overall recovery in the economy doesn't persist," said Michelle Meyer, an economist with Barclays Capital.

While prices for homes in many parts of the country are still falling, analysts said the tax credit clearly helped the volume of sales.

"In the short run, it's an effective stimulus," said John Ryding, chief economist at RDQ Economics. "If you give someone money to spend on something, they will spend it."

With April 30 as the new deadline, experts forecast sales will drop during the winter and pick up again in the spring. Without the looming deadline, "buyers have no sense of urgency now," said Gary DeRosa, an agent with ZipRealty Inc. in Seattle.

About 2 million homebuyers have taken advantage of the credit so far, the Realtors group said. It expects 2.4 million more to use it by the middle of next year. First-time buyers made up about half of all transactions last month, driving sales up 44 percent above last year's levels, a record.

Overall, sales of existing homes rose 7.4 percent in November to a seasonally adjusted annual rate of 6.54 million, up from 6.09 million in October. That was far stronger than the 6.25 million forecast by economists surveyed by Thomson Reuters.

The inventory of unsold homes on the market shrank about 1 percent to 3.5 million. That's a healthy supply of about six and a half months' worth, the smallest in three years.

That home prices are still falling shows one government housing program, an effort to get lenders to prevent foreclosures by lowering monthly payments for hundreds of thousands of borrowers, isn't working as well as the Obama administration would like. Only about 31,000 borrowers have completed the process so far.

In the meantime, high unemployment is causing homeowners to default on their loans in record numbers. Banks are unloading foreclosed homes, driving prices down in many areas, particularly Arizona, California, Florida and Nevada.

Nationwide, the median sales price was $172,600 in November, down 4 percent from a year earlier, but flat from October.

Many experts warn that lenders have millions of properties in the foreclosure pipeline that have yet to come on the market, suggesting prices could fall even further.

"When they start thinking they can sell them, we could see a surge in homes for sale," wrote Joel Naroff, president of Naroff Economic Advisors.

In the meantime, homebuyers can take advantage of record-low mortgage rates, deeply discounted prices and federal incentives.

Besides the tax credit for first-time buyers, owners who have lived in their homes for at least five years can now claim a tax credit of up to $6,500 if they relocate. To qualify, they have to sign a purchase agreement by April 30.

Real estate agent Tim Surratt of Grenwood King Properties in Houston said activity has remained healthy this month, even only days before Christmas. "The window to purchase where the prices are right and the interest rate is right is closing," he said.

Don’t Believe the Hype: Housing Won’t Collapse in 2010

2010-01-08T10:40:00.000-06:00

Despite the fact that housing prices and home sales are outperforming historical trends for this time of year, many
economists and housing market observers remain pessimistic, offering dire predictions of a second large decline in
home prices in 2010. While we acknowledge that serious troubles remain in the nation’s housing markets, we think
predictions of a second “collapse” of the housing market are exaggerated.
Our view is that recent trends point to continued stability in the housing market, and if efforts to ease foreclosures can
and do succeed, there could be significant recovery in housing values in spring 2010. Housing demand is strong, as
indicated by recent increases in sales activity at a time of year when transactions usually fall. With the 25-MSA RPX
Composite 30% below its peak, low prices are attracting owner-occupiers and investors alike into the housing market.
Stories abound of fierce bidding pushing up prices at foreclosure auctions. On the supply side, we are encouraged by
falling inventories of new and existing homes as well as declines in new-home permits and starts.
The principal threat to the housing market is the looming inventory of distressed homes. Delinquencies have reached
their highest levels in decades. Foreclosures and bank repossessions are also elevated from historical levels, but they
have not kept pace with rising delinquencies. As a result, there is a glut of seriously delinquent mortgages awaiting
foreclosure and a glut of foreclosed homes awaiting auction and/or repossession.
Bearish observers of the housing market point to the fact that government loan modification programs have prevented
the inventory of distressed properties from entering the housing market and argue that distressed homes will flood into
the market when the programs end, driving up the supply of unsold homes and pushing down home prices.
We think it is more likely that distressed properties will enter the housing market at a controlled rate that can be
absorbed by the existing housing demand without drastically reducing prices. Thanks to federal bailout money and a
general improvement in their financial health, banks have been relieved of the urgent need to liquidate their assets. As
a result, lenders and government entities like Fannie Mae and the FDIC have been able to curtail sales to raise prices
and avoid recording losses on properties. There is no incentive for banks to foreclose on a home if they will suffer a
greater loss from liquidating the property than carrying the delinquent loan. Thus, banks are not likely to foreclose on,
repossess and try to liquidate the current pipeline of delinquent mortgages in a rapid manner that would depress the
value of the properties they are trying to sell. Moreover, the Federal Government will probably continue to support
banks seeking to take a measured approach to liquidating distressed properties, either through the Home Affordable
Modification Program (HAMP), the Troubled Asset Relief Program (TARP) or by other means.
www.radarlogic.com
2
In contrast to bearish housing market observers, who argue that high unemployment will weigh heavily on housing
demand in 2010, we are heartened by the fact that housing demand is currently so robust despite the fact that
unemployment is high. Once the unemployment rate hits its peak and begins to decline, which many expect in occur
within the next two or three quarters, housing demand should get stronger.
Bears argue that the government’s interventions to boost housing demand are unsustainable and temporary, and its
efforts to modify distressed mortgages have only succeeded in shifting the burden of foreclosures into the future.
Eventually, the bears say, the government’s manipulations of the laws of supply and demand will have to come to an
end, and when they do, home prices will crash once again.
As the housing market is central to the health of the economy as a whole, we are confident that the government will
continue its efforts to support housing demand and mitigate foreclosures for the foreseeable future. We are
encouraged by the Federal Government’s commitments to support the housing market well into 2010. The Federal
Reserve has indicated that it will help keep mortgage rates low until the economy is capable of sustaining growth on
its own, and it will keep providing liquidity to the housing market by purchasing agency mortgage-backed securities
through the end of March 2010. Congress has extended the housing tax credit to include home sales that close by June
30, 2010, and the Treasury has indicated that it will extend the TARP to October 2010 and focus much of the new
commitments under the program on mitigating foreclosures and supporting the housing market. If the government and
Wall Street can find a way to effectively mitigate foreclosures, home values may well go up in 2010.
While we are not out of the woods yet, our view is that housing is showing signs of stability, markets are showing
signs of rational behavior and everyone is starting to understand the fundamental problems that brought us here. As
such, we think the bears are overdoing it.

DIY: How to Recycle a Christmas Tree - Danny Lipford

2009-12-30T12:04:00.000-06:00

DIY: How to Recycle a Christmas Tree - Danny Lipford: "How to Recycle a Christmas Tree"

Home resales surge to nearly 3-year high - Real estate- msnbc.com

2009-12-30T11:59:00.001-06:00

Home resales surge to nearly 3-year high - Real estate- msnbc.com

Chaplin Brings Christmas to Troops

2009-12-25T09:15:00.001-06:00

http://www.greatamericans.com/video/Army-Chaplain-Christmas-Message

November home sales leap

2009-12-23T09:09:00.000-06:00

NEW YORK (CNNMoney.com) -- After surging 10% in October, sales of existing homes jumped again in November, growing 7.4% compared with October to an annualized rate of 6.54 million units, according to the National Association of Realtors.
"This clearly is a rush of first-time buyers not wanting to miss out on the tax credit," said NAR's chief economist, Lawrence Yun.
November was originally going to be the last month in which sales to first-time homebuyers would qualify for a federal tax credit of up to $8,000. However, that deadline was extended through June.
In addition, the tax credit was expanded to cover people who already own a home. They can qualify for a $6,500 tax credit if purchase a new house before the end of June. That should encourage "trade-up" buyers.
The strength of sales in November surprised the industry. A panel of experts compiled by Briefing.com had forecast month-over-month sales growth of just 2.5% to 6.25 million from 6.1 million a month earlier.
The sales total was also a huge improvement over a year ago. Sales rose 45.7% over the paltry annualized rate of 4.49 million units during November 2008.
The contribution made by first-time buyers is evident in a separate survey NAR conducted of its members. They estimate that 51% of sales in November were by newcomers to the market, up a point from 50% in October. Normally, first timers account for about 40% of sales.
Also propelling sales higher were rock-bottom interest rates. The average for a 30-year, fixed-rate loan during the month was just 4.88%, down from 4.95% in October and 6.09% a year ago.
With rates that much lower, homebuyers can save more than $150 a month on a $200,000 mortgage.
The industry expects home sales to slacken December, partially because of the tax credit's originally scheduled demise. That caused some buyers to push up their closing, stealing sales from December.
However, sales will not fall off a cliff, though, according to Walter Molony, a NAR spokesman. "The psychology seems to be turning around," he said. "Potential buyers, who had been staying on the fence, now believe we're at or near the market bottom."
One X-factor, however, is the vast numbers of homes that may come to market over the next few months. There is a large "shadow inventory" -- homes owned by banks and mortgage companies -- that have not yet been put up for sale. It could be as many as 1.7 million units, according to First American CoreLogic.
In addition, another spate of foreclosures could be hitting the market as a number of option-ARM mortgages are set to default.
All that may drive prices down, according to Shari Olefson, author of "Foreclosure Nation: Mortgaging the American Dream." And the impact of these renewed price declines could again alter the market psychology.
"People think that prices have bottomed," she said. "I don't think they have. People will see price declines and that will discourage them from buying."
Mike Larson, a real estate analyst with Weiss Research has preached all through the bust that price declines are what will "fix" the housing crisis.
"We needed to see prices fall to make ownership competitive with renting again, and to restore the normal relationship of house prices to income," he said. "That has now happened and you're seeing buyers come out of the woodwork as a result."
Still, they will have to come out in large numbers to offset the inventory overhang in some of the worst markets, according to Olefson. In the Florida condo market, for example, there is a 35-to-40 month supply of units at the current rates of sale, she said.
Prices still almost certainly have further to fall.