The S&P/Case-Shiller U.S. National Home Price Index plunged 18.2% during the final quarter of 2008, the biggest annual decline in the closely watched index's 21-year history. Separately, for the month of December alone the Case-Shiller 20-City Composite Index fell 18.5% compared with the previous December, also a record decline.
The seven worst performing cities in terms of year-over-year declines continue to be from the Sunbelt, reporting negative returns in excess of 20%. Phoenix was down 34.0%, Las Vegas reported -33.0% and San Francisco fell 31.2%. Denver, Dallas, Cleveland and Boston faired the best in terms of annual declines down 4.0%, 4.3%, 6.1% and 7.0%, respectively.
Metropolitan Area Home Price Index 1-year change (%)
· Atlanta, GA:-12.1%
· Boston, MA:-7.0%
· Charlotte, NC: -7.2%
· Chicago, IL: -14.3%
· Cleveland, OH: -6.1%
· Dallas, TX: -4.3%
· Denver, CO: -4.0%
· Detroit, MI: -21.7%
· Las Vegas, NV: -33.0%
· Los Angeles, CA: -26.4%
· Miami, FL: -28.8%
· Minneapolis, MN: -18.4%
· New York, NY: -9.2%
· Phoenix, AZ: -34.0%
· Portland, OR: -13.1%
· San Diego, CA: -24.8%
· San Francisco, CA: -31.2%
· Seattle, WA: -13.4%
· Tampa, FL: -22.0%
· Washington, DC: -19.2%
Source: Standard & Poor's and Fiserv Data through December 2008
Got hot local housing tips or a story you want to share? Contact Amy Le at openingdoorsblog@HomeFinder.com.
Lately, it seems like every time I turn on the television or open a newspaper there's another big company announcing plans for massive layoffs. And for many people, the headlines have become their reality. I personally know a handful of people who lost their jobs this year and a handful more who are concerned they are the next to be let go. With a cloud of uncertainty looming over our heads, it's no wonder most people aren't out spending on big ticket items like cars and houses.
But for some retailers, waiting out the economic downturn isn't the answer. To help lure consumers off the sidelines, some retailers have decided to up their promotional antics by offering "risk-free guarantees." I'm sure you've all seen the Hyundai ads by now. HYUNDAI AD: "Now, finance or lease any new Hyundai, and if you lose your income in the next year, return it to us with no impact on your credit." Hyundai recently tacked on extra guarantees to the promotion. If you lose your job, they'll cover your loan payments for up to three months. Meaning, you keep the car.
Toll Brothers' mortgage protection plan The executives over at Toll Brothers Inc., a luxury home builder, must have been watching these ads too. Earlier this week, the company announced a promotion they're calling their "mortgage protection plan." But unlike the Hyundai promotion, you can't give back the house if you lose your job. If you do get laid off, Toll Brothers will cover your mortgage payment - up to $2,500 for six months. The mortgage insurance may also cover up to six months of principal, interest, homeowner's insurance and real estate taxes. Toll Brothers, however, won't pay your mortgage if you're self-employed or own part of the company, or if you lose your job due to misconduct, disability or hospitalization.
The policy is also set up to pay out a percentage of a household's lost income if there are multiple borrowers. For example if one spouse loses their job and contributes 50% to the household income, the mortgage protection plan would pay 50% of the couple's housing costs.
To be eligible for the insurance payouts, homeowners need to have worked at least 30 hours a week and been continuously employed for 12 consecutive weeks before losing their job. Another stipulation of the Toll Brothers' promotion is that the mortgage insurance policy is being offered to people who only finance their homes through the company's TBI Mortgage unit.
Now if Toll Brothers can just guarantee that your new home won't be worth less in six months, then this would be a deal too good to pass up.
Got hot local housing tips or a story you want to share? Contact Amy Le at openingdoorsblog@HomeFinder.com.
The Senate yesterday approved an $838 billion economic stimulus bill that includes a $15,000 homebuyer tax credit. In addition, U.S. Treasury Secretary Timothy Geithner unveiled a multitrillion-dollar financial stability plan that includes $50 billion for foreclosure prevention programs.
Officials hope that the $15k tax credit - with no repayment required - will inject some much needed life back into the housing market. The Associated Press reports that the homebuyer tax credit offered by Sen. Johnny Isakson, R-GA., would apply to any home purchased as a main residence and would cost taxpayers $19 billion.
How the tax credit works The proposal would allow a tax credit of 10 percent of the value of new or existing residences, up to a $15,000 limit. Current law provides for a $7,500 tax break but only for first-time home buyers. People could claim the credit on their 2008 tax returns and it would apply to any home purchased for one year after the recovery plan becomes law.
Proponents of the new tax credit proposal believe it will encourage more people who are standing on the sidelines to purchase a home and it will help put people back to work in the housing sector building homes.
Give the people what they want According to a recent nationwide survey conducted by the National Association of Home Builders, two-thirds of Americans support the $15,000 home buyer tax credit. The survey of more than 1,200 registered voters found that one-third of all respondents and 61 percent of renters would be more likely to buy a home if the $15,000 home buyer tax credit were to be enacted into law. David Crowe, chief economist of the National Association of Home Builders (NAHB), had said in a press release last week that in order for the tax credit to be fully affective, "Congress must make sure that the full $15,000 tax credit remains in the final stimulus package."
Got hot local housing tips or a story you want to share? Contact Amy Le at openingdoorsblog@HomeFinder.com.
Call me old-school, but I like to listen to radio talk shows when I'm in my car. Over the last few years, the housing market boom then bust has been a topic that's dominated the airwaves. And for one new radio show, there's still plenty more to talk about.
Real Estate Today, which is backed by the National Association of REALTORS (NAR), will cover the benefits and challenges of homeownership, from expert advice on buying and selling, to remodeling and landscaping, to the state of the current market and home financing issues. The show will air online at RETRadio.com. You can also visit the site any time after the premiere to listen to current or past programs. Hosted by award-winning radio broadcaster Gil Gross, the show will offer a fast-paced format that includes provocative experts, listener call-ins, field reports and a customized segment on local market conditions. Show producers plan on creating an interactive experience that offers listeners an opportunity to exchange information and learn from some of the nation's most recognized experts on a variety of real estate related topics such as landscaping, gardening, carpentry and general contracting, as well as mortgage experts and respected members of the media.
Let's just hope that NAR doesn't try to filter out controversial topics surrounding more contentious real estate issues. Honest dialog can only exist if transparency is permitted.
Where to tune in to Real Estate Today:
· In the Washington, D.C., area, Real Estate Today will air on the show's flagship station, 630 WMAL AM, every Sunday from 1-3 p.m., EST.
Satellite radio subscribers can hear Real Estate Today on:
· America's Talk, XM Channel 158, Saturdays 5-7 p.m. EST
· Talk Radio, XM Channel 165, Saturdays 1-3 p.m. EST
· Stars, Sirius-XM Channel 102, Saturdays 6-8 a.m. and Sundays 9-11 a.m. EST
OK, so maybe with the stock market in the toilet and your 401k plan not looking so hot as of late, it might not be the best time to take on challenging remodeling projects for your home. But even as you tighten your wallet, sometimes you just gotta get your decorating fix on. And the best fix is something that actually fixes something, like a sky-high heating bill.
Cellular shades feature soft light diffusion, while providing privacy and increased insulation.
If you're looking to help make your home more energy-efficient and cut down on that dreaded heating bill, you should think about swapping out your current window treatment for cellular shades, which insulate against heat loss at the window. Cellular shades are an easy way to update the look of a room while earning a payback in reduced energy costs all year long as they also help to keep rooms cooler from the incoming summer sun.
Cellular shades were introduced more than 25 years ago, but with the increasing concerning of rising energy prices, more and more homeowners have gotten hip to these shades. The vast collection of choices has also helped to boost their popularity. Cellular shades are offered in myriad colors and even patterns. Blinds To Go, which has 107 stores and an online store at Blindstogo.com has a new collection that is directly color matched to the best-selling Benjamin Moore paint trim colors to make decorating really easy.
While the current economy might be keeping you from knocking down those walls and building the master bathroom you've always wanted, small upgrades around the home might just be the remedy to help sooth that decorating itch.
Data through November 2008, released last week by Standard & Poor's for its S&P/Case-Shiller Home Price Indices, shows continued broad based declines in the prices of existing single family homes across the United States, with 11 of the 20 metro areas showing record rates of annual decline, and 14 reporting declines in excess of 10 percent compared to November 2007.
Of the 20 cities tracked, Detroit alone has lower home prices now than in 2000. Its index was 83.42. The indices have a base value of 100 in January 2000; thus, for example, a current index value of 150 translates to a 50 percent appreciation rate since January 2000 for a typical home located within the subject market.
In addition, eight of the Metropolitan Statistical Areas (MSAs) posted their largest monthly decline on record - Atlanta, Boston, Charlotte, Chicago, Dallas, New York, Portland and Seattle. Although in decline over the past few years, some of these regions have out-performed on a relative basis, when compared to the national average.
New York City, with an index of 186.81, led the index for long-term growth in home values. However, the nation's financial capital recorded a November monthly decline of 1 percent and an annual decline of 8.6 percent. It is clear that the decline in home prices is affecting all regions regardless of geography or employment opportunities.
Dallas and Denver faired the best in November, in terms of relative year-over-year returns. While in negative territory, their declines remained in low single digits of -3.3 percent and -4.3 percent, respectively. It should be noted, Charlotte reported its third consecutive largest monthly decline on record, down 1.9 percent.
On a relatively positive note, eight of the 20 metro areas recorded better annual returns compared to last month.
November 2008 S&P/Case-Shiller Home Prices Indices
Got hot local housing tips or a story you want to share? Contact Amy Le at openingdoorsblog@HomeFinder.com.
As the earth's natural resources continue to be depleted and energy costs across the globe continue to rise, more and more consumers are seeking green home products, especially those that focus on energy and water efficiency. And there is every indication that trend will only get stronger, according to home building industry product suppliers who spoke at a press conference last week during the International Builders' Show.
High-efficiency toilets, such as Kohler's San Raphael Pressure Lite model, use only one gallon of water per flush (1.0 gpf). This can save a family of four up to 20,000 gallons of water annually, versus an older 3.5 gpf toilet.
Representatives from Kohler Co., Marvin Windows and Doors, and Whirlpool Corp. talked about innovations that can lower homeowners' water and energy bills and also contribute to better indoor air quality.
Mike Luzier, National Association of Home Builders Research Center CEO and the moderator of the green product press conference, said even as green home builders find relative success in a struggling housing market, it won't be long before sustainable building practices become the industry standard.
The National Association of Home Builders is providing education and training as well as home certification services to help prepare home builders and remodelers to capitalize on this trend. NAHBGreen, the association's green building program, is expanding every month.
H2O shortage Energy efficiency is still the biggest driver, manufacturers said, but demand is also growing for water-efficient fixtures and appliances, as well as windows and doors that contribute to improved indoor air quality, the speakers said.
Omer "Butch" Gaudette, director of trade relations for Whirlpool Corp, said with only one percent of the Earth's water available for drinking, washing and other uses - 97 percent is salt water and the remainder is part of the polar ice caps - water conservation will soon be at the forefront of issues impacting new homebuilding and appliance trends.
Shane Judd, senior product manager for water conservation at Kohler Co, also said that "Water efficiency is not just important in water-starved areas," like the arid Southwest, but in more and more metropolitan areas where water supplies can't keep up with sharp population increases are also looking for solutions to manage water use.
Right now, there are 100 million toilets in use that each consume 3.5 gallons every time they are flushed. Switching to water-efficient models would have "a tremendous impact not only on water bills, but also for water conservation," Judd said during the press conference.
Advances in technology have now allowed Marvin Windows and Doors to increase the size of its casement windows while maintaining their energy-efficient qualities - thus allowing home designs that take advantage of "daylighting" - or natural lighting, so homeowners don't need to turn on their electric lights as often, said Brett Boyum, director of marketing for the Minnesota-based company. And for Marvin and other industry leaders at the forefront of green, building sustainably is a solid business practice.
"A sustainable product is a quality product, so a green product is a product that will last," Boyum said.
Photovoltaic roof panels that harness solar energy create electricity for the home, heat water, and improve indoor lighting.
As the nation's home builders embrace green building in growing numbers, industry research indicates that even the most aggressive efficiency goals for new homes won't make a dent in overall energy consumption. Instead, remodeling and retrofitting the nation's older homes is by far the more efficient solution, industry experts said on Tuesday during a press conference at the International Builders' Show in Las Vegas.
The panelists spoke as the National Association of Home Builders commemorated Green Day, drawing attention to the green education and certification programs offered by the association and the many green products, supplies and materials on display this week in the world's largest home building industry show.
Home building industry's eco-responsibility The home building industry can combat the potential effects of global climate change by providing additional training to its members and by encouraging home owners to alter some of their habits - and make energy-efficient improvements to their homes, the panelists said.
Federal energy officials estimate that Americans consume about 21 percent of the energy produced each year to operate and maintain their homes: for heating, cooling and electrical appliances, from stoves and refrigerators to televisions, computers and hair dryers.
"By just making thoughtful choices, we can reduce that impact," said Ray Tonjes, chair of the NAHB Green Building Subcommittee and a green home builder in Austin, Texas. Tonjes believes that energy efficiency is absolutely key, to the nation's continued security and to the country's economy.
Retrofitting older homes Mike Hodgson, president of the California energy consulting company ConSol, revealed the results of a study conducted for the California Homebuilding Foundation last fall. Seventy percent of the greenhouse gas emissions related to single-family envelope energy consumption can be attributed to homes built before 1983, the study found.
Further, the study demonstrated that pending $10,000 retrofitting a 1960s home could save 8.5 tons of carbon, a cost of $588 to $1,176 per ton depending on tax credits and incentives. On the other hand, increasing the energy efficiency of a new home 35 percent over current state requirements would cost about $5,000 and would reduce emissions by 1.1 tons at a cost of $4,545 per ton.
Hodgson says that retrofitting existing homes with energy-efficient features is four to eight times more carbon- and cost-efficient than adding further energy-efficiency requirements to new housing.
Remodeler Devon Hartman of HartmanBaldwin, a Claremont, Calif design/build firm, said his customers are heeding the call. By adding insulation and sealing and tightening the duct system in one recent large home renovation project, Hartman was able to replace four older heating and air conditioning units totaling 16 tons to a new 6-ton system.
"We're no longer talking about just putting on sweaters or lowering the thermostat. We're talking about creating energy through efficiency measures," he said during the press conference.
As more people turn to retrofitting and remodeling, demand increases for so-called green jobs, skilled employees to either manufacture or install components in the energy-efficient homes of the future. Buying a green home or retrofitting your exiting property to be more energy-efficient ought to be more than just a passing trend. In a world were energy is not infinite, finding ways to converse and reduce our carbon footprint will improve the quality of our lives today and the lives of a future generation.
RealtyTrac, an online marketplace for foreclosure properties, released its 2008 U.S. Foreclosure Market Report last week, which showed foreclosure activity increased 81 percent in 2008. According to the report, a total of 3,157,806 foreclosure filings - default notices, auction sale notices and bank repossessions - were reported on 2,330,483 U.S. properties during the year, an 81 percent increase in total properties from 2007 and a 225 percent increase in total properties from 2006. The report also shows that 1.84 percent of all U.S. housing units (one in 54) received at least one foreclosure filing during the year, up from 1.03 percent in 2007.
Foreclosure filings were reported on 303,410 U.S. properties in December, up 17 percent from the previous month and up nearly 41 percent from December 2007. Despite the spike in December, foreclosure activity for the fourth quarter was down nearly 4 percent from the previous quarter but still up nearly 40 percent from the fourth quarter of 2007.
RealtyTrac publishes the largest national database of foreclosure and bank-owned properties, with over 1.5 million properties from over 2,200 counties across the country.
No slowdown James J. Saccacio, chief executive officer of RealtyTrac, says many of the foreclosure prevention programs implemented to-date have done little to slow down mounting foreclosures across the country.
The California law (SB1137), which required lenders to provide written notice of their intent to initiate foreclosure proceedings 30 days prior to issuing a notice of default (NOD), resulted in a reduction of NODs from 44,278 in August to 21,665 in September. Notice of Default filings then surged by 122 percent, to over 42,000, in December. Similar patterns have occurred in other states, such as Massachusetts and Maryland, where similar types of foreclosure prevention legislation has been enacted.
Nevada, Florida, Arizona post top state foreclosure rates More than 7 percent of Nevada housing units (one in 14) received at least one foreclosure notice in 2008, giving it the nation's highest state foreclosure rate for the year. A total of 77,693 Nevada properties received a foreclosure filing during the year, an increase of nearly 126 percent from 2007 and an increase of nearly 530 percent from 2006.
Florida registered the nation's second highest state foreclosure rate in 2008, with 4.52 percent of its housing units (one in 22) receiving at least one foreclosure filing during the year, and Arizona registered the nation's third highest state foreclosure rate, with 4.49 percent of its housing units (one in 22) receiving at least one foreclosure filing during the year.
Other states with top 10 foreclosure rates for 2008 were California, Colorado, Michigan, Ohio, Georgia, Illinois and New Jersey.
Got hot local housing tips or a story you want to share? Contact Amy Le at openingdoorsblog@HomeFinder.com.
I usually post a blog everyday on ActiveRain, but over the past few weeks I've been a bit busy preparing for some new changes at Homecape, so I apologize for my absence here on the AR. Below is a message from Tim Fagan, President of CV Real Estate (and my boss), about all the new things happening at our Web site.
Good morning! Today is an exciting day for our team, our customers, our Affiliates and the entire online real estate industry. Homescape has changed its name to HomeFinder.com!
Over the past 10 years, our Web site has grown into one of the most relied upon real estate search sites by delivering a vast array of property listings - currently 3.2 million listings - to consumers, and offering real estate marketing solutions to more than 130 of our newspaper partners to serve their agent, broker and builder customers.
Last year we embarked on an extensive brand exploration that included both consumer and advertiser focus groups, as well as an online survey. Based on that research, the overwhelming majority of our respondents favored HomeFinder.com as the best name for our business. The new name reflects our continued mission to bring trustworthy, reliable and robust consumer real estate information to home buyers and sellers and to be the premiere online destination for, you guessed it - finding a home. So today represents a culmination of our research and many, many hours of planning and hard work ... and voila! The birth of a new Web site!
When you visit HomeFinder.com, you'll experience a fresh new look, and immediately notice our vibrant colors (we're now bright orange like our sister company, HomeGain) and elegantly displayed content and features. We hope you like it. And whether or not you do, we'd like to hear from you, so please feel free to share with us your feedback.
I am very proud of our team for maintaining focus and getting this critical project completed during this period of unprecedented challenges. So enjoy the new site, and stay tuned throughout the year, as we have so much more to do in 2009. HomeFinder.com is just getting started......
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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