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February 4, 2012
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Daily News Articles

  • What Customer Service Means Today
    02/03/2012

    There was a time when providing great service in real estate meant getting an understanding of the lifestyles of clients and teaching them what they didn’t already know. Simply providing them with information on homes for sale, pricing, current mortgage rates and data relevant to the transaction gave practitioners a strong leg-up as consumer access to such information was limited.

  • Study Reveals Main Culprit Behind Falling Home Values
    02/03/2012

    Blame it on distressed sales for falling home values, according to CoreLogic’s December Home Price Index. 

    Home prices nationwide dropped nearly 5 percent from 2010 to 2011, but if you exclude distressed sales, prices dropped only by 0.9 percent, according to CoreLogic.

    Foreclosures continue to hamper neighboring property values. 

    "Until distressed sales in the market recede, we will see continued downward pressure on prices," Mark Fleming, chief economist of CoreLogic, told AOL Real Estate.

  • Mortgage Rates Hit New Lows Again
    02/03/2012

    Mortgage rates once again inched lower this week, lowering the cost of borrowing and increasing housing affordability. 

    "Most mortgage rates eased to all-time record lows this week as fourth quarter growth in the economy fell short of market projections,” Frank Nothaft, Freddie Mac’s chief economist, said in a statement.

    Here’s a closer look at rates for the week ending Feb. 2: 

  • Fannie Mae Gains More Short-Sale Authority
    02/03/2012

    Five mortgage insurers have granted Fannie Mae mortgage servicers the authority to complete a short sale or deeds in lieu of foreclosure without getting their separate approval, HousingWire reports. 

    Traditionally, mortgage insurance groups have had to give the OK before a short sale can be processed on a property with a guaranteed loan.

    Now, without that extra step, Fannie mortgage servicers may be able to speed up short sale approvals on Fannie-backed loans. 

  • Bernanke Defends Keeping Rates Low for 3 More Years
    02/03/2012

    Federal Reserve Chair Ben Bernanke defended his comments about the housing market and the central bank’s decision to hold interest rates at lows until 2014 in testimony Thursday to the House Budget Committee. 

    Some lawmakers on Thursday questioned the Fed’s move to keep rates low for three more years, saying it brings a risk to higher inflation and stymies economic growth. 

  • Did Builders Overbuild Oversized Houses?
    02/03/2012

    Forty-three percent of Americans like big, suburban homes, but the majority prefers condos, apartments, and smaller homes, Chris Nelson, who heads the University of Utah’s Metropolitan Research Center, said at a smart growth conference this week. 

    Nelson said that there needs to be less building of large homes and more concentration on constructing smaller houses and attached residences to meet future demand.

  • Free Info Helps Owners Boost Resale Values
    02/03/2012

    It’s the time of year when many home owners start planning their remodel. So it’s helpful to know which projects offer the most return. The average cost of a midrange bathroom remodel is $16,634, according to Remodeling Magazine’s 2011 Cost v. Value report; home owners will recoup about 64 percent of the cost at resale. Going more upscale, however, not only costs more ($53,759, on average), but draws a lower return at resale at about 57 percent.

    Returns on both investments were down from the previous year’s report.

  • Quarter of States Prove Recession-Proof ‘Pockets of Prosperity’
    02/02/2012

    Not all areas were badly hit in the recession, a new study finds. In fact, nearly a quarter of states saw wages, median household incomes, and other earnings grow throughout the downturn, a study by Sentier Research finds. 

    The most recession-proof states tend to rely on energy and agriculture for business. On the other hand, states that tended to be the worst off during the recession also mostly had ailing real estate markets, such as Florida, California, and Arizona, where housing prices dove and hampered household incomes. 

  • More Parents Act as Kids' Mortgage Lender
    02/02/2012

    The tightened lending standards are keeping a lot of young professionals on the sidelines in home buying today. That’s where more parents are stepping in. 

    More parents are taking on the role as mortgage lenders to help their kids take advantage of low home prices and record-low mortgage rates. In fact, one in three first-time home buyers either received a gift or loan from their families for a home purchase made in 2011, according to National Association of REALTORS®’ research.

  • Construction Spending Rises for 5th Straight Month
    02/02/2012

    The worst year for home building on record was 2011, but the year ended with a surge in construction spending, as the new-home sector heads into 2012 on a brighter note. 

    For the fifth straight month, builders spent more on homes and projects, the Commerce Department reported Wednesday. Construction projects increased 1.5 percent in December to a seasonally adjusted annual rate of $816.4 billion -- the highest level in nearly two years.