Daily Real Estate News  |  August 28, 2009

10 Best Cities to Find a New Job

No U.S. cities have been untouched by the economic downturn, but some job markets have been better able to weather the storm.

U.S. News & World Report examined a variety of data to identify cities where it’s easier to find a job than in many other places.

The underlying strengths of the top cities vary considerably. Some of the stronger cities are state capitals and have lots of government jobs. Others have abundant natural resources, stable housing markets, growing health care sectors, or are in close proximity to military bases.

But overall, what separates these communities from those that have been hit harder is a steady economy that protected them from steep unemployment.

Here, in alphabetical order, are the 10 cities that offer the most opportunities for job seekers:

1. Anchorage
2. Arlington, Va.
3. Columbus, Ohio
4. Honolulu
5. Houston
6. Oklahoma City
7. Salt Lake City
8. Shreveport, La.
9. Tallahassee, Fla.
10. Wichita, Kan.

An e-mail I received from State Senator Con Bunde:

Friday, August 28, 2009

Dear Neighbors:

I want to thank all of you who emailed me with your thoughts and comments regarding driver safety issues on the Seward Highway. If you are interested in listening in, the House Transportation and Judiciary Committees are meeting jointly to discuss Alaska's Highway Safety Corridors. The committees will be hearing from the Department of Public Safety and the Department of Transportation. This meeting will be held next Tuesday, September 1, at 10:30 am and they expect it may last 2-3 hours.

You are welcome to attend the meeting in person here at the Anchorage LIO office at 716 W. 4th Avenue, or you can also call and listen in by dialing 1-888-295-4546. Just ask to be connected to the meeting, and make sure your phone is on mute and/or there is no disruptive noises/radio/TV in the background.

On another note, my office will be unattended (staff vacation) from September 1 through September 10. If you contact me by phone or email during that time, either Jane or I will get back to you as soon as possible after that break.

Thanks so much. Have a good weekend.

Con

Existing-home Sales Post Big Gains

For the first time since November 2005, existing-home sales rose compared to the prior year, NAR reported this morning. Sales of existing homes rose 7.2 percent to a seasonally adjusted annual rate of 5.24 million units in July from 4.89 million units sold in June, and they were 5.0 percent above the 4.99 million-unit pace in July 2008. This marks the largest monthly sales gain in 10 years, and the fourth straight month that home sales have increased compared to the prior month.

“The housing market has decisively turned for the better,” says NAR chief economist Lawrence Yun.

Stronger sales were driven by falling home prices, with the national median existing-home price falling 15.1 percent in July from a year ago, to $178,400. Distressed sales, including foreclosures and short sales, accounted for 31 percent of all transactions last month. Housing inventory rose 7.3 percent at the end of July to 4.09 million existing homes available for sale, which represents a 9.4-month supply at the current sales pace.

Three of the nation’s four regions reported strong monthly and annual sales gains. Sales rose 13.4 percent in the Northeast in July to an annual pace of 930,000 and were 3.3 percent higher than July 2008. In the Midwest, sales increased 10.9 percent in July to 1.22 million and were 8.0 percent above a year ago. In the South, sales rose 7.1 percent to 1.95 million and were 5.4 percent higher than July of last year. But in the West, sales slipped 1.7 percent in July to 1.13 million but were 1.8 percent above a year ago.

Yun says he is encouraged by the positive data. “A combination of first-time buyers taking advantage of the housing stimulus tax credit and greatly improved affordability conditions are contributing to higher sales,” he says. First-time homebuyers were responsible for 30 percent of home purchases in July.

Fri, Aug 21, 2009

Daily Real Estate News  |  August 20, 2009

Average Buyers Can Afford Most Homes

Housing is remarkably affordable these days.

A family earning the nation’s median income of $64,000 a year could afford to buy 72.3 percent of all homes sold in the United States during the second quarter of 2009, according to the National Association of Home Builders and Wells Fargo.

Sellers are the ones who are paying the price. More than 30 percent of all homes sold during the second quarter sold for less than the sellers paid originally, according to Zillow.com.

A significant percentage of owners who bought within the past five years and sold during the quarter lost money on the deal, according to Stan Humphries, Zillow's vice president in charge of data and analytics.

[Editor's note: Although discussion of trends on a national level can be useful, conditions in a local market can be vastly different from what's happening statistically on a national level. For that reason, conditions for owners who've bought in the last five years might or might not resemble what analysts are seeing statistically on a national basis.]

Source: CNNMoney.com (08/19/2009)

Daily Real Estate News  |  August 10, 2009

Harvard Professor Says His Plan Will Save Market

When borrowers owe more than their homes are worth, they have considerable incentive to simply walk away. These defaults result in further declines in home prices.

Martin Feldstein, a professor of economics at Harvard University and economic adviser to the Reagan administration, says he has a plan that will encourage underwater borrowers to continue paying.

For any home owner with a loan-to-value ratio greater than 120 percent, Feldstein would offer a reduction in principal, the cost of which would be shared between the government and the lender down to the 120 percent level. In exchange, the borrower would accept a recourse loan that could not be discharged by bankruptcy.

He argues that this plan would stabilize the housing market and cap housing prices at the current level.

Source: The Wall Street Journal, Martin Feldstein (08/08/2009)

Chugach Electric Assocation approached the community of Girdwood this last winter with a plan to upgrade the existing substation in Old Girdwood.  This plan was bitterly opposed by neighbors and Chugach Electric Association subsequently agreed to work with a Subcommitte in identifying alternative locations and determining the cost to relocate the substation.  At Monday night's Land Use Committee meeting Chugach Electric Association presented their study.  Three sites were identified and costs estimated as follows:

• Toadstool Drive - $4,988,317
• Gravel Pit - $6,582,573
• Industrial Park - $4,323,671

As Chugach Electric Association feels as though the current substation site is adequate for the needs of Girdwood, their position is that the community of Girdwood should pay for the relocation work.  Respectively, the cost per meter (based on 1,627 meters) would be $3,066, $4,046, or $4,501.  These figures are of course estimates.

Heated discussion broke out concerning how the numbers were generated and who was going to pay for the relocation.  Chugach Electric Association contended that there was no precedent for all rate payers paying for the elective relocation of one substation as was suggested by meeting attendees.

Up next for this issue will be a presentation to the Girdwood Board of Supervisors on Monday August 17th.

Daily Real Estate News  |  August 4, 2009

Pending Home Sales Continue to Climb

Pending home sales are up for the fifth consecutive month, the first time in six years for such a streak, according to NAR.

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in June, rose 3.6 percent to 94.6 from an upwardly revised reading of 91.3 in May. The index is 6.7 percent above June 2008 when it was 88.7. The last time there were five consecutive monthly gains was in July 2003.

Lawrence Yun, NAR chief economist, says a combination of positive market factors is fueling the gains.

“Historically low mortgage interest rates, affordable home prices, and large selection are encouraging buyers who’ve been on the sidelines," he says. "Activity has been consistently much stronger for lower priced homes. Because it may take as long as two months to close on a home after signing a contract, first-time buyers must act fairly soon to take advantage of the $8,000 tax credit because they must close on the sale by November 30.”

Here are the regional figures from the Pending Home Sales Index:

• Northeast: rose 0.4 percent to 81.2 in June and is 5.8 percent above a year ago.
• Midwest: increased 0.8 percent to 89.9 and is 11.6 percent above June 2008.
• South: jumped 7.1 percent to 100.7 in June and is 8.9 percent higher than a year ago.
• West: rose 2.9 percent to 100.4 but is 0.2 percent below June 2008.

The Treasury Department on Tuesday announced that only 9 percent of eligible home owners had been helped by the federal program to modify home loans and prevent foreclosure.

It scolded banking giants Bank of America and Wells Fargo, both of which received federal bailout money, pointing out that these banks have been among the least willing to assist troubled borrowers.

Bank of American modified 4 percent of eligible loans, and Wells Fargo modified 6 percent.

Big banks that did better included JPMorgan Chase & Co., which modified 20 percent of eligible loans, and Citigroup Inc., which modified 15 percent.

The bank with the best results was Saxon Mortgage Services Inc., which helped about 25 percent of its eligible borrowers.

Source: The Associated Press, Alan Zibel (08/04/2009)