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        <title>Real Estate Blog</title>
        <link>http://www.youragentgreg.com/blog/placentia/</link>
        <item>
            <guid>http://www.youragentgreg.com/blog/future-of-housing-finance-will-be-top-issue-for-next-president.html</guid>
            <link>http://www.youragentgreg.com/blog/future-of-housing-finance-will-be-top-issue-for-next-president.html</link>
            <author>tleocadio@sbcglobal.net (Tony Leocadio Admin)</author>
            <title>Future of Housing Finance Will Be Top Issue for Next President</title>
            <description> <![CDATA[ 
The future of housing finance in the U.S. will be a key issue facing the winner of the upcoming presidential election. That’s what a panel of industry experts told several thousand Realtors® gathered at a symposium, Housing Policy in 2013: Challenges, Opportunities and Solutions, during the REALTORS® Midyear Legislative Meetings &amp; Trade Expo this week.The National Association of Realtors® supports a comprehensive reform strategy for the secondary mortgage market to help maintain a level of certainty in the marketplace and not further disrupt the still fragile housing market recovery.“As leading advocates for homeownership, Realtors® want to make sure that everyone who wants to own a home and is able to afford one can do so,” says NAR President Moe Veissi. “Without a secondary market, mortgage interest rates would be unnecessarily higher and unaffordable for many Americans, and products like the 30-year fixed-rate mortgage would likely be inaccessible for most borrowers.”During the symposium, Federal Housing Finance Agency Acting Director Ed DeMarco noted progress made toward recovery, but cautioned that more remains to be done.“We all are cautiously optimistic that the signs of stabilization, and in some places, strength, that have begun to emerge in various housing markets are true signals that a long-awaited recovery is taking place,” said DeMarco. “While FHFA will keep its focus on foreclosure alternatives, refinancing, and ongoing liquidity in the marketplace, it is time for policymakers to begin work in earnest on the future housing finance system.”DeMarco outlined several public policy goals to ensure a more effective and efficient housing finance system, including building a new infrastructure for the secondary mortgage market; establishing standards that promote a safer and more efficient housing finance system; and increasing private capital while retracting government participation in the secondary mortgage market. FHFA assumed conservatorship of the government-sponsored enterprises Fannie Mae and Freddie Mac in 2008, and DeMarco said the entities have played a critical role in ensuring access to mortgage capital following the market downturn when private lenders left the market. Since 2008 the GSEs have bought or guaranteed approximately 75 percent of mortgages originated in the country.DeMarco noted that FHFA has completed more than 1 million loan modifications since 2008 and helped millions more families avoid foreclosure through a short sale, deed-in-lieu or other alternative. He said changes to the agency’s refinancing program has created more opportunities for homeowners who current but underwater on their mortgages to take advantage of low interest rates and refinance into more affordable terms.Also speaking at the symposium was Federal Housing Administration Commissioner and Assistant Secretary for Housing Carol Galante. “Future generations deserve the same home buying opportunities as past generations,” said Galante.Toward that end, Galante noted that FHA helped ensure access to safe, affordable financing in the absence of private market involvement following the economic downturn. She said the agency is working to preserve its mission of providing liquidity while ensuring its continued viability, and has increased premiums to compensate for losses that resulted from increased foreclosures. Galante said the long-term financial health of the agency looks good and that loans originated in recent years are performing well.Following Galante’s speech, a panel of industry experts debated the future of the GSEs and the government’s role in promoting the American dream of homeownership.Moody’s Analytics Mark Zandi identified an uncertain regulatory environment as a key issue facing the industry. After rules like the Qualified Mortgage (QM) and the Qualified Residential Mortgage (QRM) are defined, private participation in the market might increase. Zandi warned however, that without a government backstop there would be no 30-year fixed-rate mortgage, which most consumers currently use to finance home purchases.Wharton School of Business Professor Susan Watcher agreed that there is tremendous uncertainty in the market about the future of housing finance and suggested that policymakers lack a clear vision. She said that without the right system in place, the country could face a similar market downturn in the future.
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            <pubDate>Mon, 21 May 2012 11:37:31 -0500</pubDate>
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            <guid>http://www.youragentgreg.com/blog/orange-county-unemployment-3rd-lowest-in-state.html</guid>
            <link>http://www.youragentgreg.com/blog/orange-county-unemployment-3rd-lowest-in-state.html</link>
            <author>tleocadio@sbcglobal.net (Tony Leocadio Admin)</author>
            <title>Orange County  unemployment 3rd lowest in state</title>
            <description> <![CDATA[ 
While Orange County had 119,700 unemployed workers in April, the county’s 7.4% unemployment rate was third lowest in the state, according to the state Employment Development Department.




Lowest unemployment rates




County

Rate




Marin


6.5%




San Mateo


6.8%




Orange


7.4%




San Francisco


7.4%




Santa Barbara


7.7%




Santa Clara


8.2%






Marin County just north of San Francisco had the lowest unemployment at 6.4% followed by San Mateo, another Bay Area county, with 6.8%.


Orange County was one of the first in the state to go into recession in the spring of 2007 when the sub-prime mortgage industry imploded.


But it also was one of the first to come out of the downturn, thanks in large part to the diversity of its economy.


The county recorded its first year-over-year job growth in August 2010 and has been slowly but steadily adding workers since then.


In April, the county had 24,800 more jobs than a year ago, a healthy 1.8% annualized growth rate. The county, however, still has a long way to go to get back to pre-recession employment levels.


Local employers need to add more than 126,000 workers just to be where we were when the local recession began and more than 152,000 to get back to the December 2006 peak.


Although most California counties are off their unemployment highs, the state still leads the country in counties with the highest unemployment.


In April, 19 California counties had unemployment rates of 15% or higher. Imperial County east of San Diego led the state with 26.8% unemployment followed by Colusa County in the Central Valley north of Sacramento at 22.6%.


 


 


 


Courtesy of the OC Register
 ]]> </description>
            <pubDate>Mon, 21 May 2012 11:00:39 -0500</pubDate>
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            <guid>http://www.youragentgreg.com/blog/csuf-awards-diplomas-to-10359-students.html</guid>
            <link>http://www.youragentgreg.com/blog/csuf-awards-diplomas-to-10359-students.html</link>
            <author>tleocadio@sbcglobal.net (Tony Leocadio Admin)</author>
            <title>CSUF awards diplomas to 10,359 students</title>
            <description> <![CDATA[ 


FULLERTON – For decades, David G. Jones built a successful career in financial services, even launching a financial firm.


But Jones, 70, always felt like a "second-rate" professional because he never earned a college degree. On Saturday, after spending more than 20 years compiling college credits, Jones received his diploma during this weekend's graduation ceremonies at Cal State Fullerton.


"I just wanted to do this to prove to myself that I could," said Jones, a history major, as he lined up Saturday to hear his named called.


"Now that I have my degree, it feels amazing," said the Rowland Heights resident. "I want to serve as an example to my grandchildren of how important it is to go to college."


Jones is among the 10,359 students graduating from the county's largest university this weekend. About half received their diplomas Saturday and the rest will be awarded theirs Sunday.


Nearly 25,000 friends and family began arriving as early as 6 a.m. for Saturday's ceremony. Proud parents beamed as they snapped photos of their sons and daughters donning black caps and gowns. Some parents brought flower bouquets and leis for their grads. Others cried, and many simply sat with huge smiles throughout the ceremony.


Jeff Parks, from Tustin, spent several minutes leaning over a railing that separated the spectators from the graduates, trying to find his daughter Caitlin.


When he finally found her, he waved frantically to make sure she saw him.


"She is the first Parks to graduate from college," he said. "This is a very emotional day for the entire family."


Sharin Rastin, an arts major from Irvine, woke up at 4 a.m. to prepare for her big day.


"I was feeling really nervous and could not sleep," she said. "But now I know that all my hard work has paid off, so I'm starting to feel better."


Associate Student Body President Eric Niu, an international business major from Irvine, spoke to students during his address about what awaits them after college.


"As I see your faces, I know that I am looking into the future of this country," he said. "You are all the new doctors, lawyers and entrepreneurs who will move us forward. Perhaps one of you will create the new Facebook, or one of you might cure cancer."


Amanda Guzman, a communications major from Anaheim, said she's thrilled to finally graduate. But she's worried about a bleak job market.


"It's tough out there to find a job now," she said. "In school I felt safe because the only pressure was going to class and finishing homework. Now I have to go out there and make it on my own."


 


 


Courtesy of the OC Register


Guzman's mom Carolina was more optimistic.


"Mandy is such a bright girl. I'm sure she'll eventually land on her feet," she said. "But we'll worry about all that later. Today, we're going to celebrate."


 ]]> </description>
            <pubDate>Mon, 21 May 2012 10:56:35 -0500</pubDate>
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            <guid>http://www.youragentgreg.com/blog/orange-county-job-growth-to-be-the-best-since-2006-forecast.html</guid>
            <link>http://www.youragentgreg.com/blog/orange-county-job-growth-to-be-the-best-since-2006-forecast.html</link>
            <author>tleocadio@sbcglobal.net (Tony Leocadio Admin)</author>
            <title>Orange County Job Growth to be the Best since 2006- Forecast</title>
            <description> <![CDATA[ 
Orange County employers are partying like it’s pre-recession 2006 and will create 26,500 new jobs this year, the best in Southern California, according to a Cal State Long Beach forecast released today.


That is the most jobs since the Orange County economy tanked in 2007 on the heels of the subprime mortgage implosion.


“It’s very upbeat,” said Lisa Grobar, one of the Cal State Long Beach economists who prepared the regional Southern California forecast. “Orange County will be the fastest-growing in the region through 2014.”





That is the most positive projection for Orange County of all the local economists, in part because it is based on the quarterly average job growth for the first three months of 2012 compared to the previous forecasts based on the estimated state numbers in late 2011.


Grobar said Orange County will see 1.9% job growth this year followed by 2.7% in 2013. The forecast includes the European Union debt problems and a slight slowdown in China.


What may be most surprising about the Long Beach forecast is that the recovery will not be led by construction and finance — the traditional biggest Orange County job boosters after a recession.


Business and professional services jobs will grow an estimated 3.1% his year, according to the Long Beach forecast.  Grobar notes this is good news because these are higher-paying accounting and  management services jobs.  Orange County retail will also be no slouch, growing 4.2% this year, she said.


Overall, she said the Southern California region will trail Orange County but grow 1.5% this year


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Courtesy of the OC Register
 ]]> </description>
            <pubDate>Sat, 19 May 2012 14:34:35 -0500</pubDate>
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            <guid>http://www.youragentgreg.com/blog/orange-county-unemployment-at-a-three-year-low-consumer-confidence-on-the-rise.html</guid>
            <link>http://www.youragentgreg.com/blog/orange-county-unemployment-at-a-three-year-low-consumer-confidence-on-the-rise.html</link>
            <author>tleocadio@sbcglobal.net (Tony Leocadio Admin)</author>
            <title>Orange County Unemployment at a Three Year Low - Consumer Confidence on the Rise</title>
            <description> <![CDATA[ 
Orange County employers added 3,300 jobs in April, the third month in a row of employment gains, the state Employment Development Department reported today.


The county’s unemployment rate dropped to 7.4% in April from a revised 8.2% in March. That was the lowest since January 2009 but was primarily due to 11,300 fewer workers in the workforce.


California lost 4,200 jobs in April while the unemployment rate edged down to 10.9% from 11.0%.  Like Orange County, the drop was due to 4,000 fewer people in the state workforce.


Employment nationwide had a similar theme. U.S. employers added a disappointing 115,000 jobs in April and the unemployment rate dipped to 8.1%, but that was only because 342,000 left the workforce.


Local experts gave the Orange County unemployment report mixed reviews.


“You could say there was a drop in unemployment, but it’s not truly reflective of what’s going on in the economy,” said Esmael Adibi, a Chapman University economist.





The county, Adibi noted, has pockets of strength — business and professional services, educational and health services, manufacturing and leisure and hospitality are booming. Construction, however, remains in recession.


Still, he noted that year-over-year the county has added 24,800 jobs and is growing at a 1.8% pace — the strongest since 2006.


Last week, Cal State Long Beach forecast Orange County would create 26,500 jobs this year, the best in Southern California and the highest in six years.


Wallace Walrod, chief economic adviser at the Orange County Business Council, also cited the strengthening job market.


“I would be happy if we continued to create 3,300 jobs a month,” he said. “That would be 40,000 for the year, which would be strong growth.”


But construction, which has lost 4,100 jobs in the last year — and  it wasn’t doing all that great a year ago — is a major problem.


“Until we start really finding a bottom for construction, it will be hard to have a sustainable recovery,” Walrod said.


Timothy Gunnemann knows that all too well.


“I do plumbing work and it’s been really hard,” said Gunnemann, 46, of Mission Viejo.


He was out of work for six months before finding a job, but his hours have been cut.


“I’ll pretty much do anything now,” he said, while checking possible openings during a job fair in south county last week.


JoAnn Andrade, a part-time school bus driver, is another person who has a job but can’t make ends meet.


“I’ve been looking but there’s really nothing out there,” said the Anaheim resident. “I’m kind of stuck.”


But there are employers hiring. More than 50 attended the south county job fair looking to fill 400 jobs, said Chris Strom, who organized the event for the Orange County Workforce Investment Board.


The employers ran the gamut from the Pick Up Stix restaurant chain to AT&amp;T, which is looking for sales reps at its stores. FedEx and UPS both had openings, while Solatube International, which makes skylight tubes, was looking for installers.


The city of Anaheim will be hosting a job fair and expo on June 13. More than 100 employers are expected to participate in the event, which will be at the Anaheim Convention Center. Admission and parking will be free. Job seekers are encouraged to pre-register at www.anaheimjobs.com. Employers can reserve booth space by calling 714-765-4350.


 


 


 


 


Courtesy of the OC Register
 ]]> </description>
            <pubDate>Sat, 19 May 2012 14:31:58 -0500</pubDate>
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            <guid>http://www.youragentgreg.com/blog/sales-prices-may-move-faster-than-websites.html</guid>
            <link>http://www.youragentgreg.com/blog/sales-prices-may-move-faster-than-websites.html</link>
            <author>tleocadio@sbcglobal.net (Tony Leocadio Admin)</author>
            <title>Sales prices may move faster than websites</title>
            <description> <![CDATA[ 
I always find it surprising when I get calls from people looking at prices of homes online who tell me that a particular listing I have is overpriced according to the price they saw on Redfin or Zillow.


These are great sites for general information about a property, but the information that comes from those sites tends to be from the history of homes sold and that may be old history.













In a changing market, a lot can happen to home values in 30 days, and the websites don't take into account the unique features and condition of each individual property, for instance a fixer-upper versus a home which has been recently remodeled. The sites just see homes no matter what condition they are in, looking at the beds, baths and square footage and giving an average price.


The only way to get a true value of a home is by talking to a professional Realtor in the area who knows the neighborhoods and the current market trend. Do your homework and find the most knowledgeable, professional agent that you trust to do a good job for you. I firmly believe you'll find the process of buying or selling a home much easier.


 


 


 


 


 


 


 


Courtesy of Dennis Bode and the OC Register
 ]]> </description>
            <pubDate>Fri, 18 May 2012 11:47:31 -0500</pubDate>
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            <guid>http://www.youragentgreg.com/blog/3-weeks-of-all-time-low-on-interest-rates.html</guid>
            <link>http://www.youragentgreg.com/blog/3-weeks-of-all-time-low-on-interest-rates.html</link>
            <author>tleocadio@sbcglobal.net (Tony Leocadio Admin)</author>
            <title>3 WEEKS OF ALL TIME LOW ON  INTEREST RATES !</title>
            <description> <![CDATA[ 
RATE NEWS SUMMARY: From Freddie Mac’s weekly survey, for a third week in a row, the average 30-year fixed rate hit a new all-time record low of 3.79 percent and .7 point. Last week the 30-year fixed was at 3.83 and .7 point. The 15-year fixed dropped as well, averaging down to 3.04 percent from last week’s 3.05 percent. The 5-year ARM bumped up to 2.83 percent and .6 point from last week’s rate of 2.81 percent.


APPLICATION NEWS SUMMARY: Mortgage Bankers Association weekly survey indicates a whopping 9.2 percent increase of home loan applications from the previous week. Of that surging loan volume, refinancers increased to nearly 75 percent of total applications compared to last week’s 72.1 percent. The breakdown of the remainder 25 percent purchase market segment shows continued steadiness of investors (landlords) applying for 5.7 percent of all purchase transactions. Second home buyers dipped to 5.7 percent from the previous week’s 5.8 percent share. Keep in mind this survey does not indicate the percentage of cash buyers, regardless of whether the buyers are investors, flippers, second home acquirers or nice folks lucky enough not to need a loan for their primary residence.


WHAT I SEE: From rate sheets hitting my desk that are not part of Freddie Mac’s survey: Locally, 30-year fixed rates dropped to 3.375 percent and 1 point. This is the lowest I have seen in my 25 year mortgage broker career. Dido for the 15-year fixed at 2.75 percent and 1 point for well qualified borrowers. If you are into cash flow, how about a 7-year interest only ARM at 2.75 percent. Can you spell a-l-m-o-s-t free money? Agency jumbo, 30-year fixed rates ($417,001 to $625,500) are available at 3.75 percent and 1 point. The 15-year agency jumbo fixed rate is available at 2.875 percent and 1 point.


WHAT I THINK: Governator Jerry Brown does not lack chutzpah. The 400 million dollars that one segment of California’s victimized homeowners were supposed to receive from the recent bankster settlement is now being hijacked by Mr. Brown. He intends to use the funds to offset the California budget deficit. What a mench. Well, the one thing his behavior insures is that California voters are going to turn down his November ballot initiative to increase sales tax by a quarter percent for the next 7 years. He’s a real smart fellow making a really dumb decision that is just going to inflame every underwater borrower. According to the MBA, 11.8 percent of all borrowers are at least 30 days late on their mortgages. While the number is certainly better than it was (14.7% two years ago), housing still hangs in the balance. Nationally, 20 to 25 percent of all mortgages are still underwater. Look for more innovative programs to come from HUD and President Obama to spark housing and his re-election hopes.
 ]]> </description>
            <pubDate>Fri, 18 May 2012 11:42:29 -0500</pubDate>
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            <guid>http://www.youragentgreg.com/blog/affordability-hits-high-for-the-last-century.html</guid>
            <link>http://www.youragentgreg.com/blog/affordability-hits-high-for-the-last-century.html</link>
            <author>tleocadio@sbcglobal.net (Tony Leocadio Admin)</author>
            <title>Affordability hits high for the last century</title>
            <description> <![CDATA[ 


More families can afford to buy a home in Southern California now than at any 
other time during this century, according to a report released Thursday by the 
National Association of Home Builders. 



That's the good news. 



The bad news is that housing prices in California remain among the least 
affordable in the nation. That has prompted the CEO of the Building Industry 
Association of Southern California to urge local and state governments to work 
with homebuilders to ease fees and regulations that continue to drive up costs 
for builders. 



During the first quarter of 2012, nearly half (49.5 percent) of homes sold 
were affordable to a family earning the county's median income. 



That was up slightly from 48.3 percent the previous quarter but well above 
the year-ago affordability rate of 43.1 percent. 



Despite that, California still ranked as the nation's fifth least affordable 
metro area in the country during the first quarter of 2012, BIA figures show. 



David W. Shepherd, CEO of the Building Industry Association of Southern 
California, said homes have become significantly more expensive to build. 



"Between state laws that encourage lawsuits to block housing developments and 
local government fees and requirements that can add anywhere between $20,000 and 
$100,000 to the price of each new home, it's always been difficult and expensive 
to build in Southern California," Shepherd said in a statement. 



In today's market - a market in which builders are fiercely competing with less 
expensive foreclosed homes and short sales - every dollar counts, Shepherd said.



"We look forward to partnering with state and local governments to reduce 
fees, speed up processing times and craft other measures to make more projects 
pencil," he said. 



With fees and requirements adding so much additional cost to each home, 
builders often can't make enough profit to move forward with projects. 



"I've seen that with William Lyon Homes and Shea Homes," said Zak Bushey, a 
Realtor with Southland Properties in Glendora. "They had to put projects on hold 
after they started building." 



William Lyon Homes has since gained momentum in the Rosedale project in 
Azusa, a master-planned development that eventually will include 1,250 homes, 10 
neighborhood parks and a Metro Gold Line boarding station, among other 
amenities. 



Shea Homes is also now involved in a variety of housing projects. 



Affordability also hit new highs for the century in the other metro areas in 
Building Industry Association's Southern California service territory, ranging 
from 83.7 percent in Imperial County to 50.7 percent in Orange 
County


 ]]> </description>
            <pubDate>Fri, 18 May 2012 11:39:16 -0500</pubDate>
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            <guid>http://www.youragentgreg.com/blog/six-keys-to-selling-your-home-in-todays-market.html</guid>
            <link>http://www.youragentgreg.com/blog/six-keys-to-selling-your-home-in-todays-market.html</link>
            <author>tleocadio@sbcglobal.net (Tony Leocadio Admin)</author>
            <title>Six Keys To Selling Your Home in Todays Market</title>
            <description> <![CDATA[ 
Monday, May 14, 2012—		According to the National Association of Realtors®, more than 4.25 million homes sold in 2011. That's a lot of real estate and such numbers raise the question: How are sellers doing it?"Because individual homes are unique, there isn't one single strategy that works equally well for every property," says Wendy Forsythe, the executive vice president of a real estate company. "The real trick is understanding that today's marketplace is cash driven, quick and highly competitive. Owners who understand their local markets and work with a knowledgeable agent are those most likely to succeed."In March roughly one-third of all sales were cash, meaning a large number of buyers are not dependent on lender financing, the sale of their existing home or a settlement that might be 45 to 60 days in the future.Instead, they can act quickly and in many cases seek properties which can be bought today and occupied tomorrow.To ready a home for sale in today's marketplace, Forsythe says owners should consider six basic keys to selling success.Six Keys to Success1) Curb appeal counts. Most home buyers want homes which look great from the outside. It's not just a question of curb appeal -- it's about perception. If a home looks good from the street it probably means the property is ready for a new occupant without a lot of cost or hassle.Buyers tend to pass on a home that doesn't appeal to them from the street -- not even bothering to look inside. An experienced local REALTOR® can show you how to generate the most curb appeal with the least cost.2) A clutter-free home. With the new emphasis on cash sales and speed owners must show homes which are free and clear of clutter. A clutter-free home will make interior spaces look larger and eliminates the need to get rid of stuff when you are in the throes of moving. It makes sense to donate or reduce clutter before a home is placed on the market -- not only as a sales tactic but also as a practical step toward relocation.3) Working condition. Having your home's systems in good mechanical condition is an advantage in today's market. Most distressed homes can't compete when it comes to such basics as working heating, plumbing and air-conditioning. Properties that can readily pass a professional home inspection are often easier to finance, and are generally more appealing to buyers who don't want to face the unknown costs and delays sometimes associated with major renovations.4) List and negotiate properly. According to Forsythe, "a seasoned REALTOR® can show owners how best to market a particular home according to such factors as location, price, condition and financing. Owners want to work with us because our experience brings value and confidence to a transaction, factors that are enormously important in a changing marketplace."5) Seek prequalified buyers. While many sales may be for cash, the majority still require financing. It would be frustrating to enter into a sales contract with a potential buyer who ultimately cannot obtain financing to purchase your home -- meaning you have lost time -- and potentially money -- and then you have to start over. When a home is shown by appointment, the buyer should have a pre-qualification letter in hand.Such letters from lenders are not binding but at least show that the purchaser sat down with a loan officer and has some realistic sense of what he or she can reasonably afford.6) Distressed properties. Roughly 30 percent of today's home sales involve "distressed" properties -- a term which includes short sales and foreclosed properties owned by lenders. You need to consider the distressed properties in your neighborhood when pricing and marketing your home. These properties typically sell at discount, especially in major foreclosure centers and sometimes require substantial repair and rehabilitation. "Home sellers can compete with these offerings," according to Forsythe. "There's no question that a large number of distressed properties in a local market will impact prices, but price is not the only factor buyers consider. While distressed homes work for some purchasers, they're not the right choice for buyers who want homes that offer move-in condition -- homes in better shape that can often command higher prices."While the housing market is just in the beginning stages of a recovery, it's still possible to successfully sell your home by making sure you're catering to the kind of buyers in the market today, and by making sure that you -- and your home -- are ready to move as quickly as these buyers are.
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            <pubDate>Mon, 14 May 2012 09:21:54 -0500</pubDate>
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            <guid>http://www.youragentgreg.com/blog/home-prices-rise-in-half-the-us-cities.html</guid>
            <link>http://www.youragentgreg.com/blog/home-prices-rise-in-half-the-us-cities.html</link>
            <author>tleocadio@sbcglobal.net (Tony Leocadio Admin)</author>
            <title>Home Prices Rise in Half the US Cities</title>
            <description> <![CDATA[ 
Prices for single-family homes climbed in half of U.S. cities in the first quarter as real estate markets stabilized. 


The median sales price increased from a year earlier in 74 of 146 metropolitan areas measured, the National Association of Realtors said in a report today. In the fourth quarter, only 29 areas had gains. 








 



Home Prices Rise in Half of U.S. Cities as Markets Stabilize 







 




A development in Oswego, Illinois.














 








     May 7 (Bloomberg) -- Michelle Meyer, a senior economist at Bank of America Merrill Lynch, talks about the U.S. economy and real estate market.     She speaks with Tom Keene on Bloomberg Television's "Surveillance Midday." (Source: Bloomberg) 








The U.S. housing market is showing signs of bottoming as improving employment and record-low mortgage rates boost demand while inventories of available properties tighten. At the end of March, 2.37 million previously owned homes were available for sale, 22 percent fewer than a year earlier, the Realtors said. 


“The housing market is still depressed but it had a good quarter,” Patrick Newport, an economist at IHS Global Insight in Lexington, Massachusetts, said in a telephone interview today. “We’re on the mend but it’s still something that will take two or three years before we’re back to normal.” 


The national median existing single-family home price was $158,100 in the first quarter, down 0.4 percent from the first three months of 2011, according to the Realtors group. 


The best-performing metro area was Cape Coral, Florida, where prices increased 28.1 percent from a year earlier. Prices rose 19 percent in Grand Rapids, Michigan; 16.9 percent in Palm Bay, Florida; and 16.6 percent in Erie, Pennsylvania. 


Biggest Declines 


Kingston, New York, had the biggest decline, with the median selling price tumbling 22 percent in the quarter. It was followed by Stamford, Connecticut, with an 18 percent decline; Mobile, Alabama, at 14.7 percent; and Atlanta at 12 percent. 


The median selling price is influenced by the mix of homes on the market and probably was boosted by a smaller share of transactions involving distressed properties. Those homes, which sell at discounts, accounted for 32 percent of first-quarter sales, down from 38 percent a year earlier. 


Prices are more volatile than normal because they are affected by the prevalence of distressed sales and “sudden upswings” in buyer interest in some areas, said Lawrence Yun, the group’s chief economist. 


‘Broad Shortages’ 


“We have broad shortages of lower-priced homes in much of the country, with very tight supply in Western states for homes through the middle price ranges,” Yun said in the report.“This is good news for many sellers who wish to list now, or for those waiting for prices to improve.” 


Sales of previously owned homes rose 5.3 percent in the first quarter from a year earlier, according to the report. Purchases climbed 11.7 percent in the Midwest, 6.6 percent in the Northeast, 4.1 percent in the South, and 1.4 percent in the West. 


Fannie Mae, the nation’s biggest mortgage-finance company, today reported a $2.7 billion first-quarter profit after a $6.5 billion loss a year earlier, citing smaller declines in home prices as one of the reasons for improvement. The Washington-based company said that it won’t need Treasury Department aid to balance its books for the first time since it was seized by federal regulators in 2008. 
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            <pubDate>Fri, 11 May 2012 11:42:52 -0500</pubDate>
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