Some Cities Unaffected by Recession

Some U.S. cities with stable housing and diversified employment have been virtually untouched by the Great Recession.

Analysts say cities that are most likely to leave the recession in the same or better condition than they started it are those where home prices didn’t fluctuate wildly, which spared them the devastating effects of foreclosure, lost jobs, and lost productivity.

If there is a lesson to be learned, experts say, it is that families looking for long-term economic stability should settle in locales with diverse employment and minimal shifts in housing values.

To identify these cities, Forbes magazine ranked the 100 largest Metropolitan Statistical Areas by employment rates, the conventional mortgage home price index, and the average days on the market for properties currently for sale.

The top cities on Forbes list were:

• Omaha/Council Bluffs, Neb.
• San Antonio, Texas
• Austin-Round Rock, Texas
• Pittsburgh
• Harrisburg/Carlisle, Pa.
• Dallas/Fort Worth
• Rochester, N.Y.
• Houston
• Raleigh/Cary, N.C.
• Baton Rouge, La.

Housing at Its Most Affordable in Years

One piece of good news coming out of the Great Recession is the increasing affordability of housing.

The typical U.S. family earning the nation’s median income of $64,000 a year could afford to buy 70.1 percent of all homes sold in the United States during the third quarter, according to a report from the National Association of Home Builders and Wells Fargo. The report relied on the government standard of spending no more than 28 percent on housing. In the same quarter of 2008, only 56.1 percent qualified.

The five most affordable areas are:

• Indianapolis
• Youngstown, Ohio
• Detroit
• Warren, Mich.
• Grand Rapids, Mich.

• New York City
• San Francisco
• Honolulu
• Santa Ana, Calif.
• Nassau and Suffolk, Long Island, N.Y.

15-Year Rate Hits Record Low

The average rate for 15-year mortgages reached a new bottom this week, dipping from 4.40 percent to 4.32 percent—the lowest level since Freddie Mac began tracking rates in 1991.

Rates for 30-year mortgages approached the all-time low of 4.78 percent again last week, falling to 4.83 percent from an average of 4.91 percent a week ago.

Wellesley College economist Karl Case says the Federal Reserve's efforts to purchase mortgage-backed securities from Fannie Mae and Freddie Mac is lowering rates on home loans.

Source: Boston Herald, Thomas Grillo (11/20/09)

Alyeska Resort Opening Day

Wednesday, November 25!

The Resort will be running both Magic Carpets, Chair 3 and Chair 4 for ski and snowboard operations from 10:30 a.m. to 5:30 p.m.

The Tram will be open for sightseeing and lunch at the Glacier Express.

Groomed trails only, no off trail skiing. The entire mountain is designated a slow zone.

Check our snow report or call SKI-SNOW (754-7669) for the most current mountain conditions.

TICKET PRICES
All Day
$40|$35 w RFID - Adult
$35|$30 w RFID - High School | Military | College
$25|$20 w RFID - Child (8 - 13)
$10|$15 w RFID - 7 & Under | 70 & over

National Association of REALTORS Outlook Optimistic for 2010

With a boost from the first-time homebuyer tax credit, the housing market may be headed for a sustainable recovery beginning in 2010, according to the National Association of REALTORS' (NAR) latest forecast. NAR projects existing-home sales to be 5.01 million in 2009, up 2.0 percent from a year ago, before rising 13.6 percent to 5.69 million in 2010. New-home sales are also expected to rebound, rising from 397,000 in 2009 to 549,000 next year. First-time buyers are leading the recovery, accounting for 47 percent of all home sales over the past year, up from 41 percent from a year ago.

Home prices will begin to stabilize in 2010. “We’ve seen a steady downtrend in housing inventory for well over a year, and home prices appear to be in the early stages of stabilizing,” says NAR chief economist Lawrence Yun. “With expansion of the tax credit to additional buyers through the middle of next year, and no major unforeseen events impacting the economy, home prices should rise between 3 percent and 5 percent in 2010, but with wide geographic differences,” Yun says.

Alyeska Resort Season Passholder Party

Kick-off winter at the annual Season Pass Holder Party on Saturday, November 21st. At the Daylodge, the party starts at 7 PM and is free for all 2009-10 season pass holders. Pass holder guests are welcome at $25 per person. New this winter, Season Pass Holders will receive a "Season Passport" filled with savings for the ski season. Following the event, the party will move to the Sitzmark for a 9 PM show with the 11:20s (admission is $3). Passes will NOT be issued during the Pass Party. Season Pass Holder room rate available, call 754-2111.

Need to buy or pick-up your season pass? Save time and money - visit the Alyeska Booth at the Dimond Center Mall (in front of Forever 21) on weekends from noon to 6 pm. From November 20 to 29, visit us every day from noon to 6 pm. Passes can also be picked up at the Tram Ticket Office from 10 am to 6 pm. The Hubbard Room at The Hotel Alyeska will be open for pass sales November 17 to 24, noon to 7 pm. Beginning November 25 to 29 the room is open 7 am to 7 pm.

Families can still save with the Perfect Family Discount (PFD

Obama Signs Extended Tax Credit Into Law

Expected to contribute approximately $22 billion to the economy, Congress overwhelmingly passed a bipartisan measure this week extending the $8,000 home buyer tax credit to April 30, 2010.

The legislation, which is part of a larger bill that also extends unemployment benefits, was signed into law by President Obama today.

More people are now eligible to take advantage of the law, which includes a $6,500 tax credit for buyers who are current home owners and have lived in their home for five of the past eight years.

Income limits for eligible home buyers were also expanded to $125,000 for single buyers and $225,000 for couples, up from $75,000 for individuals and $150,000 for couples. Qualifying home prices are capped at $800,000.

NAR's Government Affairs Division has compiled facts on the changes made to the current tax credit. NAR members sent more than 500,000 letters to leaders in Congress and made nearly 13,000 telephone calls to Senate offices last weekend to encourage support. So far this year, REALTORS® have spent nearly $14 million lobbying Congress, according to federal campaign finance records compiled by the Center for Responsive Politics.

Sen. Johnny Isakson, a Georgia Republican and a former member of NAR, was key in extending the credit, as well as pushing it through initially. Other prominent boosters include the National Association of Homebuilders and the Mortgage Bankers Association.

Listen to NAR President Charles McMillan's podcast announcement.

NAR economists estimate that approximately 2 million people will take advantage of the tax credit this year.

Sources: NAR and The Associated Press, Julie Hirschfeld Davis (11/06/2009)

The third quarter saw an increase in Girdwood real estate sales volume and was the most brisk of this year's three quarters, but the fourth quarter is off to a strong start and may eclipse the third quarter in terms of volume.  In fact, we may see more volume in 2009 than we saw on 2008; however, this volume will still fall short of "normal" levels.

Residential:  There were 5 homes sold during the third quarter for an average of 97% of List Price after being on the market for an average of 116 days.

Condominium:  There were 5 condominiums sold during the third quarter for an average 98% of List Price after being on the market for an average of 87 days.

Vacant Land:  There were 4 pieces of vacant land sold during the fourth quarter for an average of 89% of List Price after being on the market for an average of 194 days.  These figures are skewed by the sale of one piece of vacant land at 77% of List Price after being on the market for 692 days.  Omitting this one sale results in the remaining 4 sales at an average 96% of List Price after a very short 28 average days on the market.

The Residential segment, with exception of that over $500,000 which is experiencing significant downward pressure on prices, seems to be holding steady.  While prices may be slipping ever so slightly in the Condominium market, there is a surprising amount of demand present and Sales Prices remain close to List Prices with a decrease in marketing time.  Vacant Land is the real surprise this year and the third quarter is no different; owner financing has been a big key to the increase in volume.

Look for a report from me in January for 2009.

Both Houses OK Tax Credit Extension, Expansion

The House today and the Senate yesterday passed legislation to extend the $8,000 home buyer tax credit to May 1, 2010, for first-time buyers and add a $6,500 tax credit for repeat buyers if they've lived in their home for five of the past eight years. Home prices are capped at $800,000.

The legislation in both houses was included in a bill to extend unemployment benefits and is expected to be signed by President Obama shortly.

“REALTORS® appreciate the swift action by Congress to extend the home buyer tax credit and expand it to some current homeowners,” says NAR President Charles McMillan. “As the leading advocate of housing and real estate issues, we urge President Obama to sign this legislation into law quickly to keep the momentum going in the fragile recovery of the nation’s housing market.”

Under the bill, income limits are expanded to $125,000 for individuals and $225,000 for joint filers. Individuals with incomes up to $145,000 and joint filers with incomes up to $245,000 qualify for reduced credits.

Households who have binding contracts in place by April 30 will be allowed an additional 60 days to complete their transaction. The deadline for members of the military serving out the U.S. for at least 90 days between Jan. 1, 2009, and May 1, 2010, has been extended one year.

Taxpayers can claim the credit on their federal income tax returns. If the credit exceeds their tax bill, the government will issue a check. Taxpayers will be able to claim the credit on their 2009 income tax return for purchases made in 2010.

Source: The Associated Press (11/5/2009)

10 Safest Places to Live in the U.S.

A sense of security is one of the big reasons why people choose a home. Forbes magazine has created a list of the nation’s safest places to live by examining four factors: workplace accidents, weather catastrophes, crime rates, and traffic accidents.

The result is this list of top 10 safest metropolitan areas:

1. Minneapolis-St. Paul-Bloomington, Minn.-Wisc.
2. Milwaukee-Waukesha-West Allis, Wisc.
3. Portland-Vancouver-Beaverton, Ore.-Wash.
4. Boston-Cambridge-Quincy, Mass.
5. Seattle-Tacoma-Bellevue, Wash.
6. Providence-New Bedford-Fall River, R.I.
7. San Jose-Sunnyvale-Santa Clara, Calif.
8. New York-Northern New Jersey-Long Island, N.Y.-N.J.-Pa.
9. Cincinnati-Middletown, Ohio (tie)
10. Cleveland-Elyria-Mentor, Ohio/Denver-Aurora, Colo. (tie)