May Existing-Home Sales Rise

Existing-home sales rose to an annual rate of 4.99 million units in May, which is 2.0 percent higher than the 4.89 million units in April, but 15.9 percent below the 5.93 million-unit level of a year ago, National Association or REALTORS (NAR) announced this morning. The median existing-home price was $208,600 in May, which is a 6.3 percent decline from May 2007.

Total housing inventory fell 1.4 percent last month to 4.49 million homes available for sale. This represents a 10.8-month supply, down from an 11.2-month supply in April.

Existing-home sales in May increased month-over-month in the Midwest by 5.5 percent, in the Northeast by 4.6 percent, and in the West by 2.0 percent. But sales slipped 0.5 percent in the South. All four regions posted big declines compared to a year ago: 16.5 percent in the Midwest; 15.0 percent in the Northeast; 12.8 percent in the West; and 17.0 percent in the South.

NAR chief economist Lawrence Yun the high level of inventory should take several months to decline, and that foreclosures and short sales “are creating a drag on current home prices.”

A word to the wise.....

We just booked a flight on Delta Airlines for our eleven year old son Preston to fly to Utah to see his three grandparents in July.  Delta's website makes mention of a charge for an unaccompanied minor that is payable at check-in, but doesn't list the amount and instructs you to call.  After being put on hold by telephone while trying to book online and getting nowhere, we went ahead and booked the flight.  I mean, could this charge be that much?  Uh yeah, try $100 each way!!!  Make a note.

George McCoy

Skip Minder

Daily Real Estate News  |  June 17, 2008

Former NFL Player Sells Brokerage

Former Dallas Cowboys quarterback Roger Staubach has sold his commercial real estate brokerage to Jones Lang LaSalle Inc. for $613 million, plus $114 million in potential performance bonuses.

Dallas-based Staubach is one of the nation's largest independent real estate brokerage firms, helping clients find office, industrial, and retail space. The company has more than 70 offices in North America and about 1,600 employees. The company will now operate under the Jones Lang LaSalle brand — except for Staubach Retail Services or Cypress and Staubach's investment development business, which were not part of the transaction.

Chicago-based Jones Lang has annual revenue of $2.65 billion and more than 170 offices worldwide.

The 66-year-old Staubach stepped down last year as CEO but remained chairman of the company he founded in 1977 as part of a larger management reorganization and recapitalization. He will join the Jones Lang board as executive chairman, Americas.

Source: The Associated Press (06/16/08)

We joined the Doran family and the Crocker family on Father's Day for a short camping trip about 30 minutes up Twenty Mile.  Preston was able to bring a friend, Garret McCauley, and they got to share their own tent and have their own camp fire.  Unfortunately the Doran's had to leave on Sunday, but that left us to spend Sunday night with the Crocker's.  We were again blessed by cooperative weather and incredible vistas.

While Preston was at the Summer Science Camp, Sharnee, Preston, and I had the opportunity to spend a long weekend at the Peterson Bay Lodge Oyster Camp in Kachemak Bay with the Stahla family and the Pederson family.  Noah and I enjoyed a couple of hours of sea kayaking in the Bay while Sharnee was able to read a book.  Our first trip clamming at low tide was succuessful and we enjoyed a feast of fresh clams, oysters, and shrimp.  Perfect weather treated us with a beautiful sunset.  We highly recommend a trip to this lodge; you can find their website at www.PetersonBayLodge.com .

• Alaska foreclosure rate is 0.35%; nationwide is 0.99%.
• Alaska delinquency rate is 3.4% (late payments); nationwide it is double that rate, at 6.4%.
• Alaska has the 7th lowest delinquency rate in the nation.
• Alaska has the second lowest foreclosure rate in the nation. 
• Of the relatively few number of sub-prime loans closed in Alaska, 7.7% of them have late payments as opposed to the 18.8% nationwide

• Bait and switch. The home owner is presented with what appears to be an application for refinancing, but in reality it's title transfer papers. Once the home owner signs, he loses his home.

• Upfront fees. Scammers ask for money to be used for locating rescue funding. Once the home owner pays, the scam artist disappears.

• Bankruptcy ploys. An attorney – or someone who pretends to be – persuades the home owner that filing for bankruptcy will save the house. The only one who wins is the person who pockets the fees he charges to file.

• Rent-to-buy. Fraudsters offer to buy the property with a provision that the home owner will pay rent while building equity. Once the title is transferred, the former home owner is locked out.

• Fraudulent refinance deals. A scammer offers to use his higher credit score to secure a refinance deal, but first the home owner has to hand over title to the house.