http://admiralre.com/Welcome to Admiral Blog.en-usTue, 06 Jul 2010 00:16:00 GMT10GDRSSFeeds v1.0http://admiralre.com/blog/2010/07/06/us-home-prices-up-seattle-flatHome prices in April rose for the first time in seven months as government tax credits bolstered the housing market. But the rebound may be short-lived now that the incentives have expired. <p>The Standard &amp; Poor's/Case-Shiller 20-city home price index released Tuesday posted an 0.8 percent gain. It had fallen in each of the past six months. <p>Eighteen of 20 cities showed price increases in April from March. Washington, San Francisco and Dallas each posted gains of 2 percent or more. Eleven cities reversed their declines from the month before. <p>Only Miami and New York recorded price declines. New York hit a new low for the index. <p>Nationally, prices have risen 3.8 percent from their April 2009 bottom. But they remain 30 percent below their July 2006 peak. Seattle home prices registered no gain from March to April and were down 2.8 percent from the same period a year ago, the report said. <!-- Story End --></p><P><a href="http://admiralre.com/blog/2010/07/06/us-home-prices-up-seattle-flat" target="_blank">Permalink</a> | <a href="http://admiralre.com/blog/2010/07/06/us-home-prices-up-seattle-flat#comments" target="_blank">Comments</a></P>Admiral REhttp://admiralre.com/blog/2010/07/06/us-home-prices-up-seattle-flatTue, 06 Jul 2010 00:16:00 GMThttp://admiralre.com/blog/2010/07/06/great-city-goes-all-volunteerDue to the economic climate, advocacy group Great City is becoming all-volunteer. Staff members that were previously employed will now provide limited services for free. <p>Great City was founded by Mayor Mike McGinn, who stepped down from his post as director to run for mayor. The organization says it was created to convene broad-base coalitions that advocate for a more vibrant, sustainable and equitable city. <p>Joshua Curtis, executive director of the organization, is stepping down from his role and rejoining the board. <p>Board members will be responsible for different topics of advocacy. For example, Curtis will be responsible for housing and land use reform, together with Dan McGrady. General queries should be directed to Board Chair Brice Maryman. <p>For more information, visit <a href="http://www.greatcity.org">www.greatcity.org</a></p><P><a href="http://admiralre.com/blog/2010/07/06/great-city-goes-all-volunteer" target="_blank">Permalink</a> | <a href="http://admiralre.com/blog/2010/07/06/great-city-goes-all-volunteer#comments" target="_blank">Comments</a></P>Admiral REhttp://admiralre.com/blog/2010/07/06/great-city-goes-all-volunteerTue, 06 Jul 2010 00:16:00 GMThttp://admiralre.com/blog/2010/07/06/shea-pays-105m-for-324-lots-in-laceyOfficials of Shea Homes announced yesterday that the company bought the remaining 324 platted lots at Jubilee at Hawks Prairie, an adult community in Lacey, for $10.5 million. <p>Shea officials said they will soon start building model homes and open a sales center in late summer. Homes will range in size from 1,250 to 2,500 square feet, and will be priced from the low $200,000s to the mid $400,000s. <p>Jenamar Communities previously owned Jubilee, which is on Puget Sound and built around a golf course. The project now will be marketed as Shea Homes at Jubilee. Shea entered into a capital partnership with Angelo, Gordon &amp; Co., of New York for this transaction. <p>The deal is part of a more than $30 million expansion for Shea Homes Active Lifestyle Communities. <p>The company also bought 532-lot master-planned community in North Las Vegas, and entered into a joint venture with Mountain Real Estate Capital to purchase and develop a 750-home community near Orlando.</p><P><a href="http://admiralre.com/blog/2010/07/06/shea-pays-105m-for-324-lots-in-lacey" target="_blank">Permalink</a> | <a href="http://admiralre.com/blog/2010/07/06/shea-pays-105m-for-324-lots-in-lacey#comments" target="_blank">Comments</a></P>Admiral REhttp://admiralre.com/blog/2010/07/06/shea-pays-105m-for-324-lots-in-laceyTue, 06 Jul 2010 00:16:00 GMThttp://admiralre.com/blog/2010/05/31/tax-credit-low-mortgage-rates-boost-home-salesHomebuyers rushed to take advantage of government incentives and low mortgage rates in April, giving the housing market its biggest boost in five months. <p>But now that a homebuyer tax credit has expired, growth in the second half of the year will depend on the lure of historically low mortgage rates and the strength of the economic recovery. <p>Some economists say mortgage rates alone won't be enough to propel the market. <p>“Although mortgage rates have fallen sharply, the combination of high unemployment, heavy indebtedness and tight credit suggest to us that demand will stumble,” said Paul Dales, an economist at Capital Economics. <p>Sales of previously owned homes rose 7.6 percent to a seasonally adjusted annual rate of 5.77 million, the National Association of Realtors said Monday. <p>The increase in sales sparked a rise in home prices. The median price for a new home rose to $173,100, up 4 percent from a year ago. <p>Mortgage fell last week to the lowest level for the year and close to 50-year lows as worries over the European debt crisis sent investors rushing into the safety of U.S. credit markets. <p>But Patrick Newport, an economist at IHS Global Insight, said the key to growth in the housing market won't be low mortgage rates. <p>“What really will drive sales forward and I mean after July, will be the job market,” Newport said. “Having a good mortgage rate helps affordability, but we've had low mortgage rates for a long time now and sales have stayed below 5 million, except when the tax credit was involved.” <p>The tax credit's impact is expected to linger for a couple months. While homeowners had to have a signed sales contract by April 30, buyers have until the end of June to complete their sales. The federal government provided offered first-time buyers a tax credit of up to $8,000. Homeowners looking to upgrade were able to qualify for a credit of up to $6,500. <p>Sales were up in all parts of the country except the West. The gains were led by a 21.1 percent jump in the Northeast and a 9.9 percent rise in the Midwest. Sales also rose 8.6 percent in the South. <p>The only region of the country that saw sales decline was the West, where sales dropped by 6.2 percent from March. <p>The big question facing the housing market is what happens now that the government's tax credits have expired. <p>Even with the rise in sales, the inventory of unsold homes increased in April to 4.04 million units. That would represent 8.4 months of supply of homes at the April sales pace. While that is down from inventory levels of 11 months at the depths of the housing crash, it is still above more normal inventory levels of around six months supply.</p><P><a href="http://admiralre.com/blog/2010/05/31/tax-credit-low-mortgage-rates-boost-home-sales" target="_blank">Permalink</a> | <a href="http://admiralre.com/blog/2010/05/31/tax-credit-low-mortgage-rates-boost-home-sales#comments" target="_blank">Comments</a></P>Admiral REhttp://admiralre.com/blog/2010/05/31/tax-credit-low-mortgage-rates-boost-home-salesMon, 31 May 2010 10:26:00 GMThttp://admiralre.com/blog/2010/05/31/housing-market-shiller-fears-double-dipThe housing slump isn't over. <p>Tax credits and historically low mortgage rates have failed to lift home prices so far this year. Prices fell 0.5 percent in March from February, according to the Standard &amp; Poor's/Case-Shiller 20-city index released Tuesday. <p>The co-creator of the Case-Shiller index, who predicted in 2005 that the housing bubble would burst, is raising concerns that the worst may be ahead. That fear is shared by other economists who point to weak job growth, tight credit and many more foreclosures ahead. <p>“I'm worried still about the risk of a double-dip,” economist Robert Shiller said in an interview. <p>The month-to-month drop from February to March marked the sixth straight decline. Prices in 13 of the cities fell. Only six metro areas recorded price gains. One, Boston, came in flat. <p>In the first quarter of 2010, U.S. home prices fell 3.2 percent compared with the fourth quarter. <p>Prices remain nearly 31 percent below their July 2006 peak. But they have risen nearly 3 percent from their April 2009 bottom. <p>The numbers are especially disturbing because they show that improved sales due to the tax credits didn't translate into higher prices, said David M. Blitzer, Chairman of the S&amp;P index committee. <p>Falling home prices haven't kept consumers from keeping an optimistic view of the economy. <p>A separate report Tuesday showed consumer confidence rose in May for the third straight month as hopes for job growth improved. The increase in the Conference Board's Consumer Confidence Index was boosted by consumers' brighter outlook for the next six months. <p>Still, fears are gripping Wall Street, where investors worry that the European debt crisis could hammer the global economy. The Dow Jones industrial average fell about 200 points Tuesday in early trading. <p>In a healthier economy, extraordinarily low mortgage rates would pump up demand for homes. But economists say jobs remain too few and loans hard to get for small businesses and many individuals. <p>Sales of previously occupied homes rose 7.6 percent in April, the National Association of Realtors said Monday. But the sales were aided by government incentives that have now expired and economist don't expect the improvements to last. <p>New buyers were offered a credit worth up to $8,000, while current owners who bought and moved into another home could get one for up to $6,500. To receive them, buyers had to have a signed offer by April 30 and must close by the end of June. <p>Shiller and other economists worry that prices could fall further. <p>IHS Global Insight economist Patrick Newport forecasts prices will fall an additional 6 percent to 8 percent and bottom in the third quarter of next year. He said the glut of homes on the market is the main reason, but he's also worried about the rate of foreclosure. <p>“When banks foreclose, they sell the properties at deep discounts,” Newport said. “Foreclosures have either peaked in the first quarter or are going to peak soon, but they will remain very high for several years.” <p>The decline in prices is discouraging for American homeowners who have seen the value of their largest asset deteriorate sharply over the past three years. For those struggling to pay their mortgages, falling home prices makes it even harder to refinance into an affordable home loan. Mortgage delinquencies were at a record high in the first quarter.</p><P><a href="http://admiralre.com/blog/2010/05/31/housing-market-shiller-fears-double-dip" target="_blank">Permalink</a> | <a href="http://admiralre.com/blog/2010/05/31/housing-market-shiller-fears-double-dip#comments" target="_blank">Comments</a></P>Admiral REhttp://admiralre.com/blog/2010/05/31/housing-market-shiller-fears-double-dipMon, 31 May 2010 10:26:00 GMThttp://admiralre.com/blog/2010/05/31/homebuyers-look-outside-the-urban-core<p>Developing a viable city with livable communities requires a vision based on the needs of a broad range of populations for today and into the future. Stakeholders throughout Seattle have been working to address that challenge while facing the reality of having limited physical space to grow. </p> <p>Residential builders must look at how to develop communities that connect residents with amenities they need in a smart, sustainable way. At Bennett Homes, this means discovering areas that were once considered outside the urban core and making them part of a larger transformation. </p> <div>South Seattle represents a collection of urban neighborhoods undergoing a significant renaissance. This transformation involves creating access to affordable housing within the city, and is especially visible among a concentration of residential construction projects alongside Sound Transit’s Link light rail. Importantly, these neighborhoods also represent some of the few remaining areas within Seattle where developable land is available.</div> <div> <p>Prospective homebuyers are attracted to the area because of collective improvements — from safer streets to new commercial development and a growing sense of “place.” </p> <p>We have experienced robust home sales in this area, and have been very strategic in order to realize this success. </p> <p>Our strategy meant first considering the viability of the area, specifically the Rainier Vista community, which is located along Martin Luther King Jr. Way parallel to the light-rail line where we have been building homes. With the coming of this mass transit option, MLK Jr. Way has experienced a significant transformation that connects it to the rest of the city via light rail. New construction quickly followed. </p> <p>Other factors also played an important role in our decision to invest in this area. Columbia City over the past decade has grown into a vibrant neighborhood with restaurants, shops and a cinema, and provides a much-needed community hub. Also, the Seattle Housing Authority made a significant commitment by developing a master plan, purchasing land and then selling it to developers with the promise to create affordable communities. </p> <p>Secondly, we had to consider how we would build homes — and a community — that appeal to the diverse types of buyers in Rainier Vista. </p> <p>We considered several important factors before moving ahead with new residential developments in Rainier Vista. Seattle’s south end is one of the most ethnically diverse in the country. It is also an area where younger homebuyers and young families are moving, regardless of ethnic background. To meet the demands of homebuyers in Rainier Vista and other South Seattle neighborhoods where we build or plan to build, we needed to understand their priorities. </p> <p>We learned that the most sought after benefits include: affordability, flexibility and choice (in terms of the kinds of home designs and floor plans available), quality construction, access to transit, and sustainable design and construction. </p> <p>Another important factor to consider was how families would use our homes based on their differing lifestyles. For example, some families from Middle-Eastern and Asian cultures often expressed a need for multi-generational homes. These homes accommodate additional relatives — often a grandparent — who would help with childcare. This meant designing flexible spaces where a den, for example, could be converted into a bedroom, or a great room could be redesigned to open into a dining room to create a less formal, larger dining or family area. </p> <p>We also had to take into account the physical appeal of the homes, understanding that today’s homebuyers expect strong architectural detail and high-quality construction. We built our homes at Rainier Vista with features such as front porches, which contribute to the home’s aesthetic appeal and a sense of community. We also built our homes to be environmentally savvy and energy efficient, each Built Green certified. </p> <p>Our strategy proved successful and ultimately we built and sold all 40 single-family homes (between Othello Station and Rainier Vista) and 44 Heritage townhomes. </p> <p>We have a new phase of single-family homes and townhomes under construction in South Seattle, with several pre-sold. </p> <p>Beyond selling homes, Bennett is proud to be part of the revitalization of South Seattle. Ultimately, the new development we created had to fit in with the existing neighborhood rather than the other way around. This is key in urban development; it helps ensure that the history and charm of the neighborhood remains and gives us the opportunity to expand Seattle’s sense of place while contributing to a vibrant future for the city.</p> </div><P><a href="http://admiralre.com/blog/2010/05/31/homebuyers-look-outside-the-urban-core" target="_blank">Permalink</a> | <a href="http://admiralre.com/blog/2010/05/31/homebuyers-look-outside-the-urban-core#comments" target="_blank">Comments</a></P>Admiral REhttp://admiralre.com/blog/2010/05/31/homebuyers-look-outside-the-urban-coreMon, 31 May 2010 10:26:00 GMThttp://admiralre.com/blog/2010/05/31/housing-market-hard-on-employee-transfers<p>More employees are moving for a job as home prices recover from their plunge during the recession and employers have more secure outlooks, say providers of relocation services. But corporations are now less generous with moving assistance because of the decline in the housing market. <p>Just 11.9 percent of the population moved in 2008, the lowest level since record-keeping began in 1948, according to census data. That improved slightly in 2009, to 12.5 percent of the U.S. population. <p>In a housing market that's still rocky, the biggest roadblock for a job transfer is selling the employee's old house, said Elizabeth Portalla, a vice president at Mobility Services International. With the decline in home prices, it may be worth significantly less than when it was bought, or worth less than the mortgage. <p>That means an employer, afraid of incurring big losses, is much less likely to buy the moving employee's home outright, said Dan Keating, an executive at Cartus, which provides global mobility services. <p>“Companies are cutting back on actually buying employees' homes and are providing more support and assistance in helping employees sell the home,” Keating said. <p>Employers are much more likely now to mandate a maximum price for the listing. A too-high listing could delay the sale of a house in a slow market, adding to a company's cost of providing temporary living assistance to employees in a new city. <p>In a survey done last year by Worldwide ERC, the relocation industry's professional association, 17 percent of companies said they added policies to help compensate employees for selling their homes at a loss during a job transfer. The reimbursement is usually tiered by employee's seniority level. A survey released in May by Weichert Relocation Resources found the most common maximum cap on such a payment was $50,000. Keating, who has worked in relocation services for 25 years, said the average cap he sees is probably about $25,000. <p>More companies are also offering bonus payments to get transferring employees to sell a home as fast as possible, Portalla said. <p>Below management level, policies are less generous. Keating said some level of assistance with a home sale is the norm. But sometimes a company just issues a lump-sum payment that covers the cost of selling a home, moving and a temporary living allowance in the new location, Portalla said. </p><P><a href="http://admiralre.com/blog/2010/05/31/housing-market-hard-on-employee-transfers" target="_blank">Permalink</a> | <a href="http://admiralre.com/blog/2010/05/31/housing-market-hard-on-employee-transfers#comments" target="_blank">Comments</a></P>Admiral REhttp://admiralre.com/blog/2010/05/31/housing-market-hard-on-employee-transfersMon, 31 May 2010 10:26:00 GMThttp://admiralre.com/blog/2010/05/31/state-median-home-price-is-down-3Washington home sales during the first quarter surged compared to a year ago, but slipped from the sales pace logged during the fourth quarter of 2009, the Washington Center for Real Estate Research at Washington State University reports. <p>Median home prices continued to decline on a year-to-year basis, but center officials said the reduction was much smaller than in recent quarters. <p>The median sales price during the first quarter was $245,900, 3 percent less than a year ago. Median prices ranged from $372,500 in San Juan County to $98,700 in Adams County. <p>Statewide, the number of sales was 92,720. That is 12 percent less than seasonally adjusted annual rates from the fourth quarter. But it's 36 percent above a year ago. <p>The data show the housing market is beginning to stabilize, officials said. </p><P><a href="http://admiralre.com/blog/2010/05/31/state-median-home-price-is-down-3" target="_blank">Permalink</a> | <a href="http://admiralre.com/blog/2010/05/31/state-median-home-price-is-down-3#comments" target="_blank">Comments</a></P>Admiral REhttp://admiralre.com/blog/2010/05/31/state-median-home-price-is-down-3Mon, 31 May 2010 10:26:00 GMThttp://admiralre.com/blog/2010/05/31/price-of-homes-in-region-still-downHome prices across the four-county Puget Sound region declined in April, though prices increased in some areas, according to a report the Northwest Multiple Listing Service released yesterday. <p>The median price of closed house and condo sales in King County was down nearly 2.9 percent to $340,000, compared to a year ago. Prices dropped 21 percent on Mercer Island and 17 percent on Auburn's West Hill and Vashon Island. <p>Prices jumped 13 percent in West Seattle; 10 percent in Redmond; and 9 percent in the Capitol Hill/Madison Park area of Seattle. <p>Median prices were down nearly 6 and 5 percent in Snohomish and Kitsap counties, respectively, and more than 4 percent in Pierce. <p>Across the service's 21-county reporting area 9,438 pending sales were logged, a 36 percent increase. Of these mutually accepted offers, 7,368 were in the four-county Puget Sound region — the highest volume since August of 2006. The service credited the surge to the federal home buyer tax credit that expired last week and rising consumer confidence.</p><P><a href="http://admiralre.com/blog/2010/05/31/price-of-homes-in-region-still-down" target="_blank">Permalink</a> | <a href="http://admiralre.com/blog/2010/05/31/price-of-homes-in-region-still-down#comments" target="_blank">Comments</a></P>Admiral REhttp://admiralre.com/blog/2010/05/31/price-of-homes-in-region-still-downMon, 31 May 2010 10:26:00 GMThttp://admiralre.com/blog/2010/04/10/25-townhomes-for-south-park<p>On Wednesday, local officials and leaders in the Latino community will celebrate the opening of C&#233;sar Ch&#225;vez Village, an affordable apartment complex for families at 1010 S. Henderson St. in Seattle's South Park neighborhood. <p>The 25 townhome-style rental apartments were completed last fall. <p>The village is owned and operated by an affiliate of Sea Mar Community Health Centers, a community-based nonprofit that provides health and human services in nine counties. <p>The celebration is planned for noon to 2 p.m. It is being held on the birth date of Ch&#225;vez, who was founder of the United Farm Workers Union. <p>Here is the design team: architect Environmental Works; general contractor CE&amp;C Inc.; structural engineer Malsam Tsang; mechanical engineer Sider &amp; Byers; electrical AES; civil and landscape SVR; geotech Geotech Consultants; and development consultant Beacon Development Group.</p><P><a href="http://admiralre.com/blog/2010/04/10/25-townhomes-for-south-park" target="_blank">Permalink</a> | <a href="http://admiralre.com/blog/2010/04/10/25-townhomes-for-south-park#comments" target="_blank">Comments</a></P>Admiral REhttp://admiralre.com/blog/2010/04/10/25-townhomes-for-south-parkSat, 10 Apr 2010 21:52:00 GMThttp://admiralre.com/blog/2010/03/12/several-nw-cities-on-overvalued-listThe housing markets in three cities each in Washington and Oregon are among the most overvalued in the country, according to a news item in CNNMoney.com. <p>According to the article, Bellingham is 20 percent overvalued; Wenatchee is 28.9 percent; Longview is 22.3 percent. In Oregon, Portland is 20.8 percent overvalued; Corvallis is 18.9 percent; Salem is 18.2 percent. <p>Seattle is 4.9 percent overvalued. </p><P><a href="http://admiralre.com/blog/2010/03/12/several-nw-cities-on-overvalued-list" target="_blank">Permalink</a> | <a href="http://admiralre.com/blog/2010/03/12/several-nw-cities-on-overvalued-list#comments" target="_blank">Comments</a></P>Admiral REhttp://admiralre.com/blog/2010/03/12/several-nw-cities-on-overvalued-listFri, 12 Mar 2010 22:28:00 GMThttp://admiralre.com/blog/2010/03/12/green-homes-outselling-the-rest-of-the-market<div style="padding-right: 3px; padding-left: 3px; padding-bottom: 7px; padding-top: 7px"><strong> <li style="margin-left: 12px" type="square"><em>Thanks to better marketing, environmentally certified homes are attracting more interest from buyers.</strong></em><br /> </li> </div> <div class="credit">By BEN J. KAUFMAN<br /> GreenWorks Realty</div> <!-- Story Start --> <p>&nbsp;</p> <p> <p>Sales data for environmentally certified homes first became available in 2007 in Western Washington, after the Northwest Multiple Listing Service included environmental certification check boxes. </p> <p>Now, real estate agents can note whether a home has certifications from Built Green, Energy Star, LEED for Homes or third-party verification. Agents can also download the certification as an attached document to the listing. </p> <p>GreenWorks Realty regularly monitors and tracks NWMLS data for homes that are environmentally certified, and publishes an ECert Report that compares the median sales performance of e-certified homes with non-certified homes. </p> <p>The difference is notable and growing. Data show distinct differences in the performance of certified homes, with a pronounced difference the last three months in King County. Since most e-certified homes are new construction, only homes built 2007 and later are included in the ECert Report comparison. </p> <p>&nbsp;</p> <p> <p>In Seattle the report reveals that certified homes made up 33 percent of the new home market, sold for a 9.1 percent premium per square foot and were on the market for 24 percent less time. Further, from November 2009 through January 2010, King County non-certified homes continued to decrease in value as certified home values increased. </p> <p>Remarkably, green homes carried a $92,175 price premium, were 12.3 percent smaller and continued to sell in less time than a non-certified home. In Seattle, third-party verified homes, which are often a “deeper green” home, sold for 23.5 percent more per square foot in 10 percent less time and make up 6 percent of the market. </p> <p>&nbsp;</p> <p><strong>A new normal </p> </strong> <p>During the Appraisal Institute’s fall conference in Seattle last December, 40 residential and commercial appraisers attended a session where they learned about these statistics for the first time. </p> <p>I asked members of the audience, “What percentage of the new home market in Seattle since 2007 sold with a certification?” A few hands went up at 10 percent, fewer still at 40 percent. Someone in the back of the room called out, “What about 5 percent?” </p> <p>It was eye-opening for appraisers to hear that in July 2009, two years of steady growth in market share of green homes culminated in over 49 percent of new homes sold that month with a certification. Over 50 percent, and appraisers will be required to discount any home that is not green, as that will have become the market norm. </p> <p>This performance is notable as some of the first statistical evidence in the country of a clear premium and value ascribed to green homes by consumers. </p> <p>The reasons why buyers favor e-certified homes are not rocket science, but people have different motivations. Some buy as a commitment to reducing climate change with the higher energy efficiency that green homes offer. Others buy because the homes are built with nontoxic materials, which makes the indoor-air quality cleaner than their traditional counterparts. </p> <p>Green homes are built with more environmentally sustainable products, lower waste during construction and require less maintenance over time. Money saved on monthly utility bills can be put towards a mortgage to afford a higher-performing home. </p> <p>This math is the basis of the federally insured “energy-efficient mortgage,” which relies on a Home Energy Rating System to quantify utility savings. Buyers view homes with greater energy efficiency to have a higher value, much as consumers have driven up demand for fuel-efficient cars while the SUV market has constricted. </p> <p>Builder and developer Curt Pryde of Pryde+Johnson talks about community members in his buildings drawn by the indoor-air quality of his projects: “We have a surprising number of residents who regularly comment on the fresh air and overall lack of odors in our buildings. Because we take significant measures to provide good indoor-air quality, you really notice when you introduce materials that off-gas. The residents like that they live in a healthy building.” </p> <p>&nbsp;</p> <p><strong>Building awareness </p> </strong> <p>With each article citing the loss of polar bear habitat or rising oceans as the climate warms, the demand for lifestyle choices that reflect a changing world grow. </p> <p>Climate change is a long-term trend. Home buyers may know they are interested in a green home, but few have information about what makes a particular home green, or what it’s worth to their pocketbooks. </p> <p>At the point of sale, the transfer of information to buyers can be challenging. A 2009 report by Sterling Hamilton, who studied green home marketing in Puget Sound, notes that there was a 14 percent difference in sales price between green properties actively marketed green by real estate agents versus green homes not actively marketed as green by real estate agents. As agents learn to market e-certified homes, premiums will continue to grow, home buyers will continue to learn of the benefits of green building and the cycle will continue. </p> <p>Buyers are using certification programs to increase the value of their home improvements by prioritizing easy to make energy-efficiency improvements such as insulation and air sealing. Certification programs are adding energy retrofit checklists to correspond with their remodeling checklists. </p> <p>Local investor G2B Homes is purchasing distressed properties, prioritizing sensible energy improvements and marketing and selling their homes using energy labeling (similar to miles-per-gallon stickers for cars). It’s not too large a leap to price a green premium similar to that found in the new home statistics into G2B’s pro forma. </p> <p>Since July, the percentage of e-certified homes in the market has declined slightly after several years of increasing market presence. Many builders may choose to build green but cut costs by not certifying their homes. This is a mistake, as certification agencies play a critical role in growing market awareness and educating buyers and agents. </p> <p>Developers, builders, architects, mechanical and civil engineers, and even real estate agents and marketers, need to be involved in the design and construction process to maximize value, prioritize green features in their projects and make use of certification programs to help the marketplace understand the features in their homes. </p> <p>Green agents have a particularly useful role to play as change agents to help lead America toward energy independence. Our nation’s residences account for 16 percent of total U.S. energy consumption. As our nation debates the future of energy use, the safe return on investment is capitalizing conservation as part of larger holistic plan. </p> <p>Insulating and air sealing homes is a significant part of conservation. Changes such as the city of Seattle’s promotion of home energy labeling will shine light on homes that score well, which will lead to homeowners further prioritizing and valuing energy performance improvements. </p> <p>The conversation on whether green and energy-efficient homes have greater value is a crucial one. One thing for certain, e-certified home sale performance in King County and Seattle, driven by locally successful certification programs, is a potent indicator of how green homes outperform in our market. </p> <p>&nbsp;</p> <p><span style="font-size: 13px; font-family: times"> <hr /> <strong><em>Ben J. Kaufman is the owner and broker of GreenWorks Realty, author of the ECert Report and board chair for Built Green of King and Snohomish County. </em></strong></span><P><a href="http://admiralre.com/blog/2010/03/12/green-homes-outselling-the-rest-of-the-market" target="_blank">Permalink</a> | <a href="http://admiralre.com/blog/2010/03/12/green-homes-outselling-the-rest-of-the-market#comments" target="_blank">Comments</a></P>Admiral REhttp://admiralre.com/blog/2010/03/12/green-homes-outselling-the-rest-of-the-marketFri, 12 Mar 2010 22:21:00 GMThttp://admiralre.com/blog/2010/03/12/5th-madison-condos-to-be-auctioned-off<p>5th &amp; Madison is the latest Seattle condo project to auction off units that haven't sold. </p> <p>Eighteen units will be sold at 1 p.m. March 28 at the Grand Hyatt Seattle, 721 Pine St. </p> <p>Real estate auctioneer Kennedy Wilson touts "huge savings" on the condos, with starting bids of $195,000 for a one-bedroom condo. </p> <p>The units had been priced from $399,000 to $899,000. The lot includes a two-bedroom penthouse that had been listed for $1.995 million. Bidding for the penthouse will start at $995,000. </p> <p>The 24-story, steel-and-glass tower was marketed as a "green living" project. Seattle architecture firm Ruffcorn Mott Hinthorne Stine designed the tower to be 20 percent more energy efficient than industry standards. </p> <p>Turner Construction was the general contractor. </p> <p>Condo auctions have been common over the last year in Seattle as the market has tanked. At Gallery in Belltown starting bids were as much as 58 percent off the previous price. Dean Jones of Realogics Sotheby's International Realty said 44 Gallery condos sold at an average of 32 percent off their original list prices. </p> <p>Boston-based Beacon Capital Partners bought the former Union Bank of California Center in 2004 for $100.7 million. In early 2006, the company began building 5th &amp; Madison on the north side of the site and renovating the office tower. </p> <p>A year later, Kennedy Wilson and KW Fund I, in a joint venture with RREEF, acquired the office and condo development for $300 million. </p> <p>The deadline to register for the auction is March 25. </p><P><a href="http://admiralre.com/blog/2010/03/12/5th-madison-condos-to-be-auctioned-off" target="_blank">Permalink</a> | <a href="http://admiralre.com/blog/2010/03/12/5th-madison-condos-to-be-auctioned-off#comments" target="_blank">Comments</a></P>Admiral REhttp://admiralre.com/blog/2010/03/12/5th-madison-condos-to-be-auctioned-offFri, 12 Mar 2010 22:12:00 GMThttp://admiralre.com/blog/2010/03/12/home-prices-down-but-sales-up-hereThe median price of homes that sold last month in the four-county metro region was down 2.6 percent from a year ago, and condo prices dropped 7.7 percent, according to the Northwest Multiple Listing Service. <p>In King County, the median home price was down half a percent to $373,000, and condo prices were down nearly 3 percent to $250,000. Home prices were down between 10 and 12 percent in Kitsap, Pierce and Snohomish counties. Condo prices were down 23 percent in Pierce, 12 percent in Snohomish and 9 percent in Kitsap. <p>As prices remain low, pending sales numbers soared. Activity was up 22 percent in Kitsap County to 71 percent in Snohomish County. In King and Pierce counties sales jumped 63 and 31 percent, respectively. <p>Members of the Kirkland-based NWMLS attribute increased sales to improving consumer confidence and the June 30 expiration of the home buyer tax credits. </p><P><a href="http://admiralre.com/blog/2010/03/12/home-prices-down-but-sales-up-here" target="_blank">Permalink</a> | <a href="http://admiralre.com/blog/2010/03/12/home-prices-down-but-sales-up-here#comments" target="_blank">Comments</a></P>Admiral REhttp://admiralre.com/blog/2010/03/12/home-prices-down-but-sales-up-hereFri, 12 Mar 2010 22:10:00 GMThttp://admiralre.com/blog/2010/03/12/new-homes-sales-fell-11-in-januarySales of new homes plunged to a record low in January, underscoring the formidable challenges facing the housing industry as it tries to recover from the worst slump in decades. <p>The Commerce Department reported Wednesday that new home sales dropped 11.2 percent last month to a seasonally adjusted annual sales pace of 309,000 units, the lowest level on records going back nearly a half century. The big drop was a surprise to economists who had expected sales would rise about 5 percent over December's pace. <p>The January decline will heighten fears about the fledgling recovery in housing. Economists were already worried that an improvement in sales in the second half of last year could falter as various government support programs are withdrawn. <p>The sales decline in January marked the third straight monthly drop following decreases of 3.9 percent in December and 9.5 percent in November. <p>January's weakness was evident in all regions except the Midwest, where sales posted a 2.1 percent increase. Sales were down 35 percent in the Northeast, 12 percent in the West and almost 10 percent in the South. <p>The drop in sales pushed the median sales price down to $203.500. That was down 5.6 percent from December's median sales price of $215,600, and off 2.4 percent from year-ago prices. <p>New home sales for all of 2009 had fallen by almost 23 percent to 374,000, the worst year on record. The National Association of Home Builders is forecasting that sales will rise to more than 500,000 sales this year, an improvement from 2009 but still far below the boom years of 2003 through 2006 when builders clocked more than 1 million new home sales per year. <p>The unexpectedly large drop in January activity will increase concerns that the housing rebound could falter in coming months as the government withdraws the support it has used to try to bolster the housing market, which stood at the epicenter of the country's overall recession, the worst downturn since the 1930s. <p>A $1.25 trillion program from the Federal Reserve which has held down mortgage rates is set to end March 31 and tax credits to bolster home buying are scheduled to expire at the end of April. <p>First-time home buyers could qualify for a credit of up to $8,000 while homeowners who have lived in their current properties for at least five years could claim a tax credit of up to $6,500 if they decided to move into another home. <p>Though the overall economy started growing again this past summer, economists are worried because unemployment remains high. This weakness is causing consumers to shy away spending, especially on big-ticket items such as homes. <p>The Conference Board reported Tuesday that its Consumer Confidence Index fell almost 11 points to 46 in February, pushing the index down to its lowest reading since last April. At 46, the index is a long way from the 90 reading that economists generally view as depicting healthy consumer attitudes. </p><P><a href="http://admiralre.com/blog/2010/03/12/new-homes-sales-fell-11-in-january" target="_blank">Permalink</a> | <a href="http://admiralre.com/blog/2010/03/12/new-homes-sales-fell-11-in-january#comments" target="_blank">Comments</a></P>Admiral REhttp://admiralre.com/blog/2010/03/12/new-homes-sales-fell-11-in-januaryFri, 12 Mar 2010 22:10:00 GMThttp://admiralre.com/blog/2010/03/12/glut-of-unsold-homes-easingThe CEO of Hovnanian Enterprises said a modest surge in foreclosures this year wouldn't have a devastating effect on the home builder's sales. <p>Ara Hovnanian said new construction and the inventory of homes for sale have fallen well below normal levels in many cities. So the addition of more homes on the market shouldn't hurt builders. <p>“While we prefer no more supply coming through foreclosures, a little more supply would not completely devastate the markets, from our perspective,” Hovnanian said Wednesday. <p>Foreclosures soared following the collapse of the housing boom, particularly in California, Arizona, Nevada and Florida. That created a glut in many markets that drove down home prices. As a result, home builders have struggled to woo buyers away from sharply discounted bank-owned homes. <p>Steady sales in many foreclosure-ravaged markets such as Las Vegas and Phoenix have gradually whittled down the number of homes on the market, however. <p>In addition, many banks have slowed down the foreclosure process, sometimes opting to modify at-risk mortgage loans. That's also led to fewer bank-owned properties hitting the market. <p>The inventory of previously occupied homes on the market dipped slightly in January to about an eight-month supply at the current sales pace. That's up from a recent low of 6.5 months in November, but below the high of about 11 months in July of 2008. <p>But in many markets, the supply of homes for sale is below the six months generally regarded as a normal level. <p>Hovnanian noted that in Sacramento, Calif., a market hard-hit by foreclosures in recent years, there is about a two-month supply of homes available now versus more than a year's worth back in 2007. And in Orlando, Fla., supply is around seven months, down from well over a two-year supply at the start of 2008, he said. <p>Still, the last thing Hovnanian wants to see is a tsunami of foreclosures, which some economists have predicted could come if borrowers with option-ARM mortgages default in coming months. <p>Option ARMs allow borrowers to defer some of their interest payments and add them to the principal. Many of these loans are scheduled to reset, potentially triggering huge monthly payment increases. </p><P><a href="http://admiralre.com/blog/2010/03/12/glut-of-unsold-homes-easing" target="_blank">Permalink</a> | <a href="http://admiralre.com/blog/2010/03/12/glut-of-unsold-homes-easing#comments" target="_blank">Comments</a></P>Admiral REhttp://admiralre.com/blog/2010/03/12/glut-of-unsold-homes-easingFri, 12 Mar 2010 22:09:00 GMThttp://admiralre.com/blog/2010/03/12/condo-prices-cut-at-escala<p>Prices for units in the Escala condo tower in downtown Seattle are dropping significantly. <p>The project owner — Lexas Cos. of Seattle and RREEF Global Opportunity Fund — recently brought in a new team to spur sales in the 269-unit, 30-story tower. They announced new pricing on some of the units this week. <p>A nearly 1,900-square-foot penthouse that had been listed at more than $4 million can now be had for $2.3 million, and a $12 million penthouse will now sell for just under $7 million. <p>A 952-square-foot condo will start at $384,000. A 1,607-square-foot unit will list at $699,000. And a 2,442-square-foot unit will begin at $1.6 million. <p>The price cuts vary. <p>“Every suite is a little bit different,” said Bob Rennie, owner of Rennie Marketing Systems, part of the new marketing team. He didn't give a percentage drop but called it “a serious price reduction” that addresses the new economic reality. Rennie's company is working with TeamBuilder JLS, the new sales agent. <p>The team will get the new purchase and offering statement tomorrow or Monday, and sales will officially resume March 23, Rennie said. <p>Three years after marketing began, just six of the condos have sold, and 67 are under contract. People who have units under contract will be offered new prices, Rennie said. <p>He said the new team is not involved with the six buyers whose sales already closed. </p><P><a href="http://admiralre.com/blog/2010/03/12/condo-prices-cut-at-escala" target="_blank">Permalink</a> | <a href="http://admiralre.com/blog/2010/03/12/condo-prices-cut-at-escala#comments" target="_blank">Comments</a></P>Admiral REhttp://admiralre.com/blog/2010/03/12/condo-prices-cut-at-escalaFri, 12 Mar 2010 22:08:00 GMThttp://admiralre.com/blog/2010/01/31/sorting-through-the-homebuyer-tax-creditIf you bought a home in 2009, you could be eligible for a tax credit. Figuring out which one can be confusing. <p>There's one credit for first-time homebuyers and another that primarily benefits homebuyers who owned a home before. But don't mix it up with the first-time homebuyer credit in 2008, which actually was a long-term loan. <p>There are maximum income levels and maximum sales prices. And vacation homes or rental property don't qualify. <p>“If you want to spend two hours reading the instructions and translating them and finding out whether you qualify, yes, it's relatively simple,” said Jeff Schnepper, an MSN Money tax expert and author of “How to Pay Zero Taxes.” <p>Some questions and answers about the homebuyers tax credit: <p><strong>Q. What's the purpose of the credit?</strong> <p>A. Congress passed the tax credits in an effort to boost the struggling housing industry and fight recession. Indications are that it's had an impact. The National Association of Realtors reported that November sales of existing homes were up 44 percent from a year earlier. Although new home sales dropped in November, figures from the Commerce Department show that they're up 8 percent from the low in January 2009. <p><strong>Q. How many people are claiming the credit?</strong> <p>A. “In all, 4.4 million households are expected to claim the tax credit before it expires,” Lawrence Yun, the Realtors' chief economist, said. <p><strong>Q. How many versions are there?</strong> <p>A. There are actually three. <p>The first credit, for first-time homebuyers, was really a long-term, interest-free loan that has to be paid back over 15 years. The maximum credit was $7,500 for a principal residence purchased between April 9, 2008, and June 30, 2009. <p>The second iteration made the first-time homebuyers credit a true credit — it doesn't have to be paid back — and raised the amount to a maximum $8,000. It applied to homes purchased between Jan. 1, 2009, and Nov. 30, 2009. <p>The third change extended the eligibility dates to homes purchased through April 30, 2010. It also added a credit for long-time homeowners who purchased a new residence between Nov. 7, 2009, and April 30, 2010, but at a reduced value — up to $6,500. <p><strong>Q. Do I automatically qualify if I purchased a house during those periods?</strong> <p>A. No. To qualify, the house has to be used as a primary residence. If purchased after Nov. 6, 2009, it cannot have cost more than $800,000. If you're a long-time homeowner, you had to have lived in the same house consecutively for five out of the last eight years, though you need not have lived in or owned that house at the time you buy your new home. <p>For homes purchased after Nov. 6, 2009, the credit also begins phasing out for individuals with modified adjusted gross incomes above $125,000, and for married couples filing jointly with incomes above $225,000. <p><strong>Q. How does the Internal Revenue Service define a principal residence?</strong> <p>A. “Your main home is the one you live in most of the time,” the agency said. “It can be a house, houseboat, mobile home, cooperative apartment or condominium.” <p><strong>Q. How do I claim the credit?</strong> <p>A. There's a form, 5405, to fill out. You'll also have to submit a copy of your settlement statement, usually Form HUD-1, with the names and signatures of all parties, the property address, the sales price and date of purchase. <p>To avoid refund delays, the IRS recommends that long-time homeowners who purchase a new home also provide documents to show they meet the requirement for consecutive years lived in their old house. These can include mortgage interest statements, or property tax or homeowner's insurance records. <p><strong>Q. Do I have to wait until I file my 2010 taxes to claim the credit for a home purchased before the deadline in 2010?</strong> <p>A. No. “You can choose to claim the credit on your 2009 return for a home you bought in 2010 that qualifies for the credit,” the IRS said. <p><strong>Q. I purchased my home in 2008 and filed for a credit on my tax returns. Do I still have to pay it back?</strong> <p>A. Yes. When Congress did away with the repayment requirement, it did not do so retroactively. <p><strong>Q. What if I want to keep my original house and use it as a rental property?</strong> <p>A. If you qualify for the credit as a long-time homeowner, nothing in the law requires you to sell the original house. However, you must make the new one your primary residence. <p><strong>Q. What if I decide to sell the house I got the credit for or convert it to a rental property?</strong> <p>A. You will have to pay back the credit if you don't keep the purchased house as your permanent residence for three years. </p><P><a href="http://admiralre.com/blog/2010/01/31/sorting-through-the-homebuyer-tax-credit" target="_blank">Permalink</a> | <a href="http://admiralre.com/blog/2010/01/31/sorting-through-the-homebuyer-tax-credit#comments" target="_blank">Comments</a></P>Admiral REhttp://admiralre.com/blog/2010/01/31/sorting-through-the-homebuyer-tax-creditSun, 31 Jan 2010 21:02:00 GMThttp://admiralre.com/blog/2010/01/31/december-home-sales-down-nearly-17-percentSales of previously occupied homes took the largest monthly drop in more than 40 years last month, sinking more dramatically than expected after lawmakers gave buyers additional time to use a tax credit. <p>The report reflects a sharp drop in demand after buyers stopped scrambling to qualify for a tax credit of up to $8,000 for first-time homeowners. It had been due to expire on Nov. 30. But Congress extended the deadline until April 30 and expanded it with a new $6,500 credit for existing homeowners who move. <p>“It's ‘exit stage left' for first-time homebuyers,” wrote Guy LeBas, an analyst with Janney Montgomery Scott. <p>December's sales fell 16.7 percent to a seasonally adjusted annual rate of 5.45 million, from an unchanged pace of 6.54 million in November, the National Association of Realtors said Monday. Sales had been expected to fall by about 10 percent, according to economists surveyed by Thomson Reuters. <p>The report “places a large question mark over whether the recovery can be sustained when the extended tax credit expires,” wrote Paul Dales, U.S. economist with Capital Economics. <p>The median sales price was $178,300, up 1.5 percent from a year earlier and the first yearly gain since August 2007. However, some of that increase could be due to a drop-off in purchases from first-time buyers who tend to buy less expensive homes. <p>Sales are now up 21 percent from the bottom a year ago, but down 25 percent from the peak more than four years ago. <p>The big question hanging over the housing market this spring is whether a tentative recovery will stumble after the government pulls back support. The Federal Reserve's $1.25 trillion program to push down mortgage rates is scheduled to expire at the end of March — a month before the newly extended tax credit runs out. <p>Last year, first-time buyers were the main driver of the housing market, but their presence is on the decline. They accounted for 43 percent of purchases in December, down from about half in November, the Realtors group said. <p>The inventory of unsold homes on the market fell about 7 percent to 3.3 million. That's a 7.2 month supply at the current sales pace, close to a healthy level of about 6 months. <p>Total sales for 2009 closed out the year at 5.16 million, up about 5 percent from a year earlier. That was the first annual sales gain since 2005. But prices fell dramatically last year, declining 12.4 percent to a median of $173,500, the largest decline since the Great Depression. <p>Though the results missed Wall Street's expectations, the Realtors' group says there are signs the market is finally stabilizing. <p>“There is some sustainable momentum building in the housing market right now,” said Lawrence Yun, the group's chief economist. However, he cautioned that the recovery will depend on whether the economy starts adding jobs in the second half of the year. <p>Many experts project home prices, which started to rise last summer, will fall again over the winter. That's because foreclosures make up a larger proportion of sales during the winter months, when fewer sellers choose to put their homes on the market. <p>Despite fears that home prices are starting to fall again, some analysts still believe the worst is over. <p>“We do not believe it is fair to consider this a double dip in the housing market,” Michelle Meyer, an economist with Barclays Capital, wrote last week. “The recovery is still under way, but hitting some bumps in the road.” </p><P><a href="http://admiralre.com/blog/2010/01/31/december-home-sales-down-nearly-17-percent" target="_blank">Permalink</a> | <a href="http://admiralre.com/blog/2010/01/31/december-home-sales-down-nearly-17-percent#comments" target="_blank">Comments</a></P>Admiral REhttp://admiralre.com/blog/2010/01/31/december-home-sales-down-nearly-17-percentSun, 31 Jan 2010 21:02:00 GMThttp://admiralre.com/blog/2010/01/31/foreclosures-lenders-worry-buildersThe housing market remains a significant risk to the economy, data Wednesday showed, as bad weather across much of the country hit the construction industry. <p>The Commerce Department said construction of new homes and apartments fell 4 percent in December to a seasonally adjusted annual rate of 557,000 from an upwardly revised 580,000 in November. Applications for future projects, however, increased strongly as the industry ramps up for the spring selling season. <p>The results for new home construction were lower than the 580,000 forecast by economists surveyed by Thomson Reuters and were led by declines of 19 percent in the Northeast and Midwest. Construction fell 1 percent in the West, but rose more than 3 percent in the South. <p>“Builders continue to be nervous about the employment situation and the number of foreclosures out there competing with them,” said David Crowe, chief economist at the National Association of Home Builders. Another problem, Crowe noted, is that builders have seen their financing for new projects dry up steadily over the past 18 months. <p>Applications for new building permits, a gauge of future activity, rose 11 percent to an annual rate of 653,000, a far stronger showing than economists had predicted and the highest level of activity since October 2008. <p>Analysts were divided about the report's significance. Patrick Newport, an economist with IHS Global Insight, noted that home permits have increased strongly for two straight months, which should lead to more hiring in the construction industry. <p>“The economy has performed much better than we had anticipated that it would perform six months ago,” Newport said. <p>However, Sal Guatieri, an economist at BMO Capital Markets, said the slowdown in construction in the last three months of the year will be a drag on economic output. <p>While home construction usually snaps back at the start of an economic recovery, Guatieri expects the housing and financial crises to “leave an enduring footprint on this recovery.” <p>The building industry has dramatically scaled back construction amid the worst housing bust in decades. Thousands of foreclosed homes have been dumped on the market at bargain prices that make it difficult for builders to compete. <p>Another source of worry is that lending standards are also tightening too. The Federal Housing Administration, a primary source of funding for first-time homebuyers, said Wednesday it would raise fees and tighten lending standards to shore up its strapped finances. <p>Meanwhile, inflation pressures at the wholesale level eased in December as a drop in energy prices offset a big jump in food costs. <p>The Labor Department said Wednesday that wholesale prices edged up 0.2 percent last month, much slower than the 1.8 percent surge in November. Energy prices, which had been up for two months, fell in December. <p>The price performance at the wholesale level combined with last week's benign reading on consumer prices supported the view that inflation is not a problem. </p><P><a href="http://admiralre.com/blog/2010/01/31/foreclosures-lenders-worry-builders" target="_blank">Permalink</a> | <a href="http://admiralre.com/blog/2010/01/31/foreclosures-lenders-worry-builders#comments" target="_blank">Comments</a></P>Admiral REhttp://admiralre.com/blog/2010/01/31/foreclosures-lenders-worry-buildersSun, 31 Jan 2010 21:02:00 GMThttp://admiralre.com/blog/2010/01/09/home-prices-down-58-in-december<p>SEATTLE — The median selling price of a King County single-family home was $380,000 in December, down 5.8 percent from a year earlier, according to the Northwest Multiple Listing Service. <p>The median selling price of a condo in the county was $244,000 in December, down 15.5 percent from a year earlier. <p>Pending sales of single-family homes and condos combined in King County were up 35.1 percent from a year ago, the NWMLS reported.</p><P><a href="http://admiralre.com/blog/2010/01/09/home-prices-down-58-in-december" target="_blank">Permalink</a> | <a href="http://admiralre.com/blog/2010/01/09/home-prices-down-58-in-december#comments" target="_blank">Comments</a></P>Admiral REhttp://admiralre.com/blog/2010/01/09/home-prices-down-58-in-decemberSat, 09 Jan 2010 15:48:00 GMThttp://admiralre.com/blog/2010/01/09/mortgage-rates-rise-but-stay-below-5Mortgage rates rose for the second consecutive week but the number of homeowners who applied for refinancing remained strong. <p>The average fixed rate on a 30-year mortgage was 4.94 percent this week, up from 4.81 percent last week, Freddie Mac said Thursday. <p>Mortgage rates are closely tied to yields on long-term government debt, which have risen since the average fixed rate on 30-year mortgages hit a record low of 4.71 percent the week of Dec. 3. <p>A Federal Reserve program to buy $1.25 trillion in mortgage-backed securities has kept rates on 30-year mortgages around 5 percent this year. The program, geared to make home buying more affordable, is set to end next spring. <p>The low rates resulted in a wave of refinancing activity: Roughly three out of four mortgage applications were for refinancing during the first two weeks of December, the Mortgage Bankers Association reported. <p>Freddie Mac collects mortgage rates each week from lenders around the country. Rates often fluctuate, even within a given day. <p>The average rate on a 15-year fixed mortgage rose to 4.38 percent from 4.32 percent last week. <p>Rates on five-year, adjustable-rate mortgages averaged 4.37 percent, up from 4.26 percent last week. Rates on one-year, adjustable-rate mortgages rose to 4.34 percent from 4.24 percent. <p>The rates do not include add-on fees known as points. The nationwide fee for loans in Freddie Mac's survey averaged 0.7 point for 30-year loans. The fee averaged 0.6 point for 15-year and five-year loans, and 0.5 point for one-year mortgages.</p><P><a href="http://admiralre.com/blog/2010/01/09/mortgage-rates-rise-but-stay-below-5" target="_blank">Permalink</a> | <a href="http://admiralre.com/blog/2010/01/09/mortgage-rates-rise-but-stay-below-5#comments" target="_blank">Comments</a></P>Admiral REhttp://admiralre.com/blog/2010/01/09/mortgage-rates-rise-but-stay-below-5Sat, 09 Jan 2010 15:48:00 GMThttp://admiralre.com/blog/2010/01/09/foreclosure-backlog-estimated-at-17m-homesAbout 1.7 million homeowners were on the verge of foreclosure in the fall, a looming “shadow inventory” of homes that will be put up for sale in the coming years and weigh down prices, a report said Thursday. <p>The number, up from 1.1 million a year earlier, is likely to keep rising through the middle of next year or later, said Mark Fleming, chief economist of First American CoreLogic, the real estate research firm that released the study. <p>Already, the foreclosure backlog is equal to nearly half the 3.8 million unsold new and existing homes currently on the market, First American said. <p>“We're going to be dealing with high levels of distressed (sales) in the marketplace for at least a couple of years,” Fleming said. “It's not just all going to disappear.” <p>Other reports have come up with larger estimates. But FirstAmerican assumes that fewer delinquent borrowers — only about one-third — will wind up losing their homes. It also estimates that nearly 30 percent of bank-owned properties have already been listed for sale. <p>In many markets around the country, the number of new foreclosures has dropped in recent months as homeowners are reviewed for loan modification programs. But real estate agents, who have seen this as an encouraging sign, still fear that an onslaught is coming. <p>“We've been in recovery mode for most of the year. How many foreclosures do they have to dump on the market to affect that? I don't know,” Deborah Farmer, owner of StarLight Realty in Tampa said. </p><P><a href="http://admiralre.com/blog/2010/01/09/foreclosure-backlog-estimated-at-17m-homes" target="_blank">Permalink</a> | <a href="http://admiralre.com/blog/2010/01/09/foreclosure-backlog-estimated-at-17m-homes#comments" target="_blank">Comments</a></P>Admiral REhttp://admiralre.com/blog/2010/01/09/foreclosure-backlog-estimated-at-17m-homesSat, 09 Jan 2010 15:48:00 GMThttp://admiralre.com/blog/2010/01/09/new-federal-rules-will-speed-up-short-sales<div style="padding-right: 3px; padding-left: 3px; padding-bottom: 7px; padding-top: 7px"><strong> <li style="margin-left: 12px" type="square"><em>The plan is designed to accelerate the necessary agreements between lenders, real estate agents, buyers and sellers.</strong></em><br /> </li> </div> <!-- Story Start --> <p>The Treasury Department unveiled sweeping rules this week to help financially troubled homeowners who need to sell but can't get a price high enough to pay off their mortgages. Homeowners will even get $1,500 to help cover their moving costs. <p>The plan is designed to help homeowners who don't have the income or debt levels to qualify for a loan modification under the Obama administration's $75 billion Making Home Affordable program. The plan establishes timelines, a standard process and documents, and cash incentives for participation. <p>“There's always efficiency with uniformity,” said Vicki Vidal, associate vice president of government affairs at the Mortgage Bankers Association. “It makes it easier for the parties involved to know what to expect.” <p>Short sales, as these deals are known, reduce the damage to the borrowers' credit record and save the lenders the cost of foreclosure. Short sales also help neighboring property values because the sales price is usually higher than what the house would fetch in a foreclosure auction. <p>About one in 10 home sales this year was a short sale, or an estimated 500,000 sales, according to the National Association of Realtors. In areas like Las Vegas, southern Florida and California, the ratio is far higher. <p>To qualify under the new guidelines: <p>• The property must be the homeowner's principal residence. <p>• The homeowner is delinquent on the mortgage or default looks likely. <p>• The loan was made before Jan. 1 this year and is less than $729,750 <p>• The borrowers' total monthly mortgage payment exceeds 31 percent of their before-tax income. <p>The plan is designed to accelerate the necessary agreements between lenders, real estate agents, buyers and sellers. Too often short sales are anything but quick. <p>Nancy Philbrick, an agent in Manchester, N.H., waited half a year for Bank of America to approve or reject a short sale offer she sent in for her clients back in April. The couple fell behind on their mortgage after a difficult pregnancy saddled them with a stack of medical bills. They're now renting a home nearby and trying to get back on their feet. <p>Philbrick found out in late October her client's file moved to another party for review. But the offer expired Oct. 15 after two extensions and the buyer backed out of the deal. Philbrick and her sellers are back to square one. <p>For its part, Bank of America, like other lenders and servicers, has spent millions of dollars to upgrade computer systems and hire another 3,500 workers for its 12 call centers. The bank services 14 million loans, the most in the nation, including the troubled portfolio of Countrywide Financial, which it bought last year. <p>But the Treasury Department's plan for short sales has some short comings. <p>Mortgage companies don't have to launch the program until April 5, 2010, which is no relief for homebuyers, sellers and real estate agents mired in deals now. The program is also voluntary for lenders who hold second mortgages, such as home equity loans or piggy-back loans. The Treasury Department has estimated that about half of homeowners in default have more than one loan on their properties. <p>While those other secondary debt holders can receive up to $3,000 to release their claims on the property, that may not be enough for larger creditors who would rather go after the borrower. <p>“Three thousand dollars is not much if you have a $200,000 second lien,” said Jeff Lischer, managing director of regulatory policy at the National Association of Realtors. “In large measure, the success of the program depends on the willingness of investors to accept a short sale.” <p>Nevertheless, the new guidelines should reduce paperwork by requiring mortgage companies to use the financial and hardship documents submitted by borrowers seeking a loan modification. Mortgage companies will have to approve short sale terms, including the minimum listing price, before the house is put on the market, which should speed up the approval process. <p>The government also provides strict deadlines and specific documents for the process. Mortgage companies will receive $1,000 to cover administrative costs.</p><P><a href="http://admiralre.com/blog/2010/01/09/new-federal-rules-will-speed-up-short-sales" target="_blank">Permalink</a> | <a href="http://admiralre.com/blog/2010/01/09/new-federal-rules-will-speed-up-short-sales#comments" target="_blank">Comments</a></P>Admiral REhttp://admiralre.com/blog/2010/01/09/new-federal-rules-will-speed-up-short-salesSat, 09 Jan 2010 15:47:00 GMThttp://admiralre.com/blog/2009/12/08/higher-downpayments-proposed-for-fha-loansHomebuyers insured by the Federal Housing Administration would have to provide more cash up front and meet higher credit scores under an Obama administration plan to protect the financially stretched agency. <p>Housing and Urban Development Secretary Shaun Donovan told a House committee Wednesday that the administration wants borrowers to have a stronger equity position on their loans. One possibility would be raising the current 3.5 percent downpayment requirement. Proposed legislation in Congress would raise the downpayment required to 5 percent. <p>Donovan also wants to reduce seller inducements, such as offers to pay closing costs, to no more than 3 percent of the purchase price. Donovan said the current 6 percent level creates incentives to inflate the appraised value of property. <p>The steps aim to get homeowners more invested in their property and therefore less likely to default on loans or, in Donovan's words, to make sure FHA borrowers have more “skin in the game.” <p>While those measures are designed to better protect the FHA, it also would reduce the number of homebuyers and thus affect the economic recovery. <p>The agency offers insurance against default, but FHA losses have increased with the unemployment rate as more homeowners default. <p>“The loans FHA insures must be safe and self-sustaining for the taxpayer over the long-term,” Donovan said. “With these reforms and others we will be considering, the administration is committed to ensuring that they are today — and into the future.” <p>Donovan is also asking Congress for authority to raise insurance premiums to build up the FHA's insurance fund as a hedge against economic uncertainty. <p>FHA's reserves have fallen to $3.6 billion, compared with $685 billion in outstanding insured loans for the fiscal year ended Sept. 30. That 0.53 percent ratio is far below the 2 percent threshold required by Congress. <p>“While its secondary reserve account has been depleted too quickly, FHA is not ‘the next subprime' as some have suggested,” Donovan said. He said delinquencies among borrowers with subprime loans are 240 percent higher than FHA's and that FHA relied only on traditional, 30-year fixed-rate mortgages. <p>He said the administration also plans to make sure lenders assume responsibility for any losses from loans that did not apply FHA underwriting standards. </p><P><a href="http://admiralre.com/blog/2009/12/08/higher-downpayments-proposed-for-fha-loans" target="_blank">Permalink</a> | <a href="http://admiralre.com/blog/2009/12/08/higher-downpayments-proposed-for-fha-loans#comments" target="_blank">Comments</a></P>Admiral REhttp://admiralre.com/blog/2009/12/08/higher-downpayments-proposed-for-fha-loansTue, 08 Dec 2009 19:18:00 GMT