RISMEDIA, January 7, 2009-After holding fairly stable for a year, pending home sales declined in the face of job losses and an eroding economy, according to the National Association of Realtors®.

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in November, fell 4.0 percent to 82.3 from a downwardly revised reading of 85.7 in October, and is 5.3 percent below November 2007 when it was 86.9. The current index is the lowest since the series began in 2001.

Lawrence Yun, NAR chief economist, said a weakening was inevitable.

“Mounting job losses and very weak consumer confidence deterred home buyers from signing contracts in November,” he said. “December’s housing market activity could be comparably lower due to ongoing problems in the economy, so a real estate-focused stimulus plan is urgently needed.”

Yun said the outlook will depend heavily on the stimulus package. “With a proper real-estate focused stimulus measure, home sales could rise more than expected, by more than 10 percent to 5.5 million in 2009, and easily begin to stabilize home prices in many parts of the country. Stable home prices will, in turn, lessen foreclosure pressures and lay the foundations for a solid economic recovery as the nation’s 75 million homeowners regain confidence,” he said.
The impact of mortgage interest rates declining to near 50-year lows in December is not reflected in current data.

The PHSI in the Northeast dropped 7.2 percent to 63.2 in November and is 14.6 percent below a year ago. In the Midwest the index fell 6.7 percent to 74.2 and is 10.1 percent below November 2007. The index in the South declined 2.2 percent to 85.3 in November and is 12.7 percent below a year ago. In the West, the index was down 2.4 percent to 101.2 but remains 19.3 percent higher than November 2007.

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said there can’t be an economic recovery without a focus on housing. “It’s crucial for Congress and the new administration to move quickly to remove impediments and offer home buyers the incentives they need to tap into today’s historic low mortgage interest rates,” he said.

“NAR advocates expanding a $7,500 tax credit to all home buyers and eliminating the repayment feature, and permanently raising loan limits to bring down interest rates for many buyers in high-cost areas. We also need to expedite short sales and unclog the mortgage pipeline,” McMillan said.

The 30-year fixed-rate mortgage should hold fairly steady through the first half of the year and rise slightly in the second half. NAR’s housing affordability index, which looks at the relationship between home prices, mortgage interest rates and family income, is on track to match a record high set in 1972.

“The unique housing affordability conditions in today’s market underscore the opportunity in giving consumers the necessary incentives to stimulate our economy through a housing recovery,” Yun said.

For more information, visit www.Realtor.org.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Read more real estate headlines on RISMedia.com, see:

• Winning Lessons from the Wide World of Sports  
  Taking Credit for First-time Home Purchase

By Sharon Harvey Rosenberg

RISMEDIA, January 7, 2009-(MCT)-Whether you are moving across town or across the country, relocating can be an expensive and stressful, according to Myscha Theriault of Wise Bread, one of the top-ranked personal finance blogs. Surrounded by boxes and packing peanuts, Theriault speaks from experience. She and her husband recently moved to Florida from Maine.

Based on her experience of setting up homes in different countries and different states in the U.S., Theriault has assembled a list of tips designed to save time and money.

1. Pare down. “Clean, cull and downsize before you even start the process. It’ll be easier to set up afterward,” Theriault said.
2. Create a system. As you pack, put room labels on each box. For instance, write “kitchen” on the box of dishes and “living room” on the box containing trinkets for the coffee table. This system will save steps whether you use professional movers or friends.
3. Prepare a kitchen kit. Your cooking routine will be dramatically disrupted before, during and immediately after you move into a new home. Minimize culinary challenges by creating a “start-up box” for your new kitchen, said Theriault. You don’t need a full set of pots or utensils, “just enough to whip up a few simple meals while you unpack and settle in,” she said. Her relocation menu includes grilled cheese sandwiches, skillet dinners, frozen pizza and spaghetti. Coffee supplies are essential. This starter kit will eliminate the need for expensive takeout meals when you move into a new home.
4. Start a portable tool kit. Easy-to-reach tools and supplies are useful for emergencies and necessities as you pack, move and re-assemble your possessions. Creating a portable tool kit “is a great way to hit the ground running in your new location,” Theriault said.
5. Dress simply. While moving, you won’t be posing for Vogue or GQ magazine. Pack a small bag with a few grunge outfits that will work as you lift, sort or clean during the transition period. Don’t forget an emergency dress-up outfit for unexpected job interviews or other professional opportunities.
6. Pack serenity. Patience-with others and yourself-is a valuable asset on moving day. “Take your time, tackle what you can and get the key systems set up first: meals, laundry, communication and transportation,” Theirault told me. “There’s no pressure to be Martha Steward the first week.”

© 2008, The Miami Herald.
Distributed by McClatchy-Tribune Information Services.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Related consumer moving tips and topics on RISMedia.com:

• Curb Appeal Matters Now More Than Ever, Say Realtors  
  Does Your Home Insurance Keep You Covered?  
  Beyond Staging - Refreshing the Home

By Mary Umberger

RISMEDIA, January 6, 2009-(MCT)-Last summer, the federal government threw first-time home buyers a big bone-an income-tax credit for buying a place to live.

This isn’t like a tax deduction: A tax credit can have even more impact on your finances than a deduction because it allows you to directly reduce the amount you owe Uncle Sam-in this case, up to $7,500.

But like all tax rules, it’s slightly complicated-for one thing, you must pay it back. And for another, it’s temporary-you’ll have to close on your home purchase by July to take advantage of it.

We talked with Robert Dietz, tax economist for the National Association of Home Builders in Washington, who said many first-time buyers seem to be aware of the credit, but they’re skittish about the repayment feature.

“We’re trying to get the fence-sitters into the market,” he said. “But the impact of (the credit) so far, at least in terms of sales data, has been disappointing.”

Here are five things to know about the credit:

1. Congress created it because it perceived that incentives to make first-time buyers enter the market are critical to priming the housing pump. First-timers are less-encumbered buyers than those who don’t have an existing home to sell-and once they buy, it usually sets off a chain of other move-up purchases.

2. To get the credit, you must be a first-time home buyer, but the government defines that somewhat generously: You cannot have owned a home in the past three years. The home must be your principal residence (no vacation homes) and have been purchased-that is, closed on-between April 9, 2008 and July 1, 2009.

3. Although it’s been promoted widely as “a $7,500 tax credit,” it’s not as cut-and-dried as that. The credit is equal to 10% of the purchase price of the house, up to $7,500-and given the price of real estate, most purchases will more than qualify. But there are income limits: Single taxpayers with modified adjusted gross income (MAGI), which is income that’s been adjusted for various tax considerations) up to $75,000 and couples with MAGI up to $150,000 will qualify for the full credit. If your MAGI is higher, you still may be entitled to partial credit; if it’s above $95,000 for singles and $170,000 for couples, you can’t claim the credit at all.

If the amount of tax you owe is less than the amount of the credit, you will get to keep the difference, in the form of a refund from the IRS.

4. Are you still with us after all that? Probably the most important aspect of the tax credit is that it really isn’t a “credit” at all-it’s more like a loan. You’ll have to pay the feds back.

But before you say, aw, shucks, keep in mind that it’s essentially an interest-free loan. You’ll have to start repaying it in two years, in increments of about $500 over a 15-year period if you’ve received the full credit.

If you sell the home before the credit is repaid, the balance will be due immediately-and theoretically, you’ll sell the house for a profit, so that repayment should be straightforward. But given the times we live in, if the house is sold for a loss, the outstanding balance is forgiven.

The NAHB’s Dietz said, though, that getting the financial incentive after the closing “creates a chicken-and-egg problem for buyers who are having difficulty accumulating a down payment.”

The National Association of Realtors has advised potential buyers that they might get some benefit from the tax credit up-front if, as they begin their house-hunt, they adjust the amount withheld from their salaries for taxes, bank it, and apply it toward the down payment, with the presumption that the tax credit will create a favorable financial swap.

“Adjusting your withholding is an option, but you’d have to be very, very careful about it,” Dietz said. “I wouldn’t recommend it necessarily. People would have to talk to a tax professional about that.”

5. You will claim the credit on a new IRS form, 5405. In addition to all the whys and wherefores mentioned here, there are other exclusions and tax minutiae-so, as these articles always say, consult a tax professional. But in the meantime, detailed information is available from federalhousingcredit.com, a Q&A site managed by the NAHB.

The federal government, too, has information, though it’s harder to retrieve, and the specific Web address is about a mile long. One way to access it is to go to IRS.gov and click on Newsroom at the bottom of the home page; then click on News Releases, then News Release Archive (from September), where you’ll come to a governmental summary of the law.

You were expecting the IRS to make it simple?

© 2008, Chicago Tribune.
Distributed by McClatchy-Tribune Information Services.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Related Headlines on RISMedia.com:

• Did You Hear the One about the Dirty Air Filter? 5 Tips for Homeowners  
  Does Your Home Insurance Keep You Covered?  
  How Foreclosure Works

RISMEDIA, January 6, 2009-Realty Executives Gulf Coast has announced that four more experienced real estate agents have decided to join its team. Betty Bronnenberg, Paula LeBlanc, Ba Porterfield and Larry Orr will be practicing as real estate sales professionals out of the company’s office located at 3479-B Gulf Shores Parkway in Gulf Shores.

“I am excited about the growth and experience level here at Realty Executives,” said Broker/Owner, Randy McKinney. “While other companies are closing and contracting, we are determined to attack a challenging market head on with a well-equipped team of professionals ready to serve the buyers and sellers in our community.”

Larry Orr is a native of Memphis, Tennessee and relocated to Orange Beach five years ago. He has been active in real estate for over three years. “I am looking forward to a new year with a great company with dynamic leadership. Tough times require new ways of doing business, and Realty Executives provides the platform from which to reach for greater successes,” said Orr.

Ba Porterfield has lived on the Gulf Coast for over five and a half years. She has been a licensed real estate professional for 15 years now. Prior to real estate she spent many years in Mortgage Banking Loan Administration servicing real estate loans in all 50 states. This profession led to her living all over the United States.

“I am excited and optimistic about my future with Realty Executives Gulf Coast. I look forward to serving my clients with the outstanding resources and guidance offered by our office & the franchise,” said Porterfield.

Paula LeBlanc moved to the Gulf Coast area in 2004 from New Iberia, LA and began her career in real estate about a year ago. Prior to working in the real estate industry she practiced nursing at Baldwin Regional Medical Center in Foley and was in sales a number of years prior to that. “It has been a learning and rewarding experience. I’ve not only had customers, but have created new friendships. My decision to join Realty Executives was based on the exciting marketing tools and plans that Realty Executives offers and the way I was made to feel at home immediately. I look at this as a great opportunity to work with our community to fulfill their housing needs,” said LeBlanc.

Betty Bronnenberg is originally from Meridian, Mississippi and has lived on the Gulf Coast for more than six years. She has been actively involved in the real estate industry for over five years. “I look forward to starting the New Year with Realty Executives, a company that provides positive, solid leadership and offers the latest in technological tools and support that is crucial in today’s market,” said Bronnenberg.

Each of these real estate executives may be reached at (251) 968-4300.

For more information, visit www.RealtyExecutivesGulfCoast.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

RISMEDIA, January 6, 2009-Casa Latino Franchise Corporation, one of the country’s largest network of Hispanic and minority owned real estate offices has selected Celebration, Florida as its new corporate headquarters.

Speaking from Connecticut, Casa Latino CEO Robb Heering announced that the company was relocating its headquarters and national franchise sales operations to a new facility in Celebration, Florida, roughly one mile from Disney World.

“We have systematically grown our company and our expansion is increasing at a rapid pace. We needed to make some decisions regarding office space sooner than later as we need to immediately increase our ability to host franchise owners and prospects and house additional corporate staff. We decided to expand the bounds of our office search outside of our current location in Southbury, Connecticut,” said Heering.

“Our new location in central Florida is a global destination. Celebration is a town that was designed by the Walt Disney Company and it’s a far cry from the snow and ice of the northeast. The new office space can accommodate our needs to have training and conference facilities and allows for expansion for additional staff. The new state of the art building known as Palm Plaza was constructed and is managed by La Rosa Development Corporation. Joe La Rosa, a principal at La Rosa Development is also a Casa Latino franchise owner and a major area developer for Casa Latino in several markets.

Our cramped Connecticut office has been vacated and our move to Celebration has been accomplished in time to kick off 2009. We will grow our brand presence in many additional markets in 2009 here in the US and in Latin America and the new venue will serve our needs well,” he continued.

Casa Latino’s new headquarters office is located at 1420 Celebration Boulevard, Suite 200, Celebration, FL 34747.

For more information, visit http://www.casalatino.com/.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Read more real estate headlines on RISMedia.com, see:

• Reshaping Real Estate  
  Forget Back to Basics - It’s Time for a ‘New Deal’

RISMEDIA, Jan. 5, 2009-This week’s headlines from the NATIONAL ASSOCIATION OF REALTORS include: differentiate yourself in the marketplace with educational opportunities from the REALTOR Benefits® Program; help your clients with selling basics with publications from NAR; and existing-home sales weaken.

Educational Opportunities from NAR’s REALTOR Benefits® Program

NAR understands that education is a key component for REALTORS® looking to differentiate themselves in the marketplace. To help you achieve your goals, the REALTOR Benefits® Program includes special pricing on certain real estate focused certifications and designations. For a current listing of educational offerings, click here.

Help Your Clients with Selling Basics

The NATIONAL ASSOCIATION OF REALTORS® Guide to Home Selling outlines the process of selling a home. It presents a variety of issues for home owners to consider when deciding to sell their home, and provides consumers with as complete a picture of the process as possible so they can make the best decisions with their real estate professionals for their needs.

Existing-Home Sales Decline in Economic Uncertainty

Existing-home sales weakened against a backdrop of an eroding economy, according to NATIONAL ASSOCIATION OF REALTORS®.

For more information, visit www.REALTOR.org.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

RISMEDIA, January 5, 2009-Dennis Liebl, a broker with Dickson Realty’s South Lake Tahoe office, has earned the EcoBroker Certified® designation from EcoBroker International, having successfully completed a unique and informative training program on the energy and environmental issues that affect real estate transactions. With the addition of Liebl, Dickson Realty now has six brokers who hold the EcoBroker Certified® designation, the most of any real estate agency in Nevada.

“It is important for Dickson Realty to be leading the movement of pushing the real estate market toward energy-efficient, sustainable, and healthier design/features in homes and buildings,” said Liebl. “I am proud to be able to join this ‘performance home’ movement with the other Dickson Realty brokers that understand the importance of ‘green’ homes. EcoBrokers can better create competitive advantages for their customers.”

With national surveys indicating that 80 percent of consumers consider themselves “green-minded,” Dickson Realty professionals with the EcoBroker designation are in a better position to serve the real estate consumer.

“I’m always looking for the best ways to offer my clients the best value,” said Liebl. “My EcoBroker training helps me ensure customer satisfaction, which is my number one priority, as well as broaden the range of real estate opportunities I offer my clients. From windows to moisture control to energy savings, I now have more resources at my disposal to help my buyers and sellers make better real estate decisions. Whether the transaction involves environmental assessment and mitigation (mold, radon, etc.) or the opportunity to reduce utility bills, I’m in a position to help. The real estate industry is changing, and to best serve my clients I need to understand the newest designs, technologies, and environmental issues. My EcoBroker designation helps me stay ahead of the game.”

EcoBroker International’s education and designation program is designed exclusively for real estate professionals who care about the environment and want to help clients benefit from the energy-efficient, “green,” and healthier features of homes and buildings. EcoBroker provides a complete curriculum of energy and environmental training to licensed real estate agents. Real estate professionals must complete the extensive EcoBroker curriculum and training and fulfill additional program requirements to become Certified EcoBrokers®.

“Dickson Realty’s EcoBrokers are not only distinguishing themselves in a competitive market place, but they are giving back to the community in very constructive and meaningful ways,” said Nancy Fennell, president of Dickson Realty, Inc. “Our brokers are continually looking for ways to better assist our clients while doing what is right for our community.”

Also as part of Dickson Realty’s commitment to environmental responsibility, the real estate agency launched its new “Dickson Green” division on April 2008 to serve as a resource for healthier, more cost-effective, green real estate practices.

For more information, visit http://www.dicksonrealty.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

RISMEDIA, January 5, 2009-Peter F. Hunt, Chairman and CEO of Buffalo-based HUNT Real Estate Corporation, announced the merger of its Central New York real estate brokerage business with the former Prudential First Properties. The new, combined entity will operate under the Hunt Real Estate logo.

Until recently, Hunt Real Estate Corporation operated two residential real estate brokerage offices in the Syracuse metropolitan area as Hunt Real Estate ERA with 85 agents affiliated with the firm. In addition, Hunt operates a commercial office in Liverpool as Hunt Commercial Real Estate. The former Prudential First Properties operates eight residential sales offices housing 322 agents. According to Mr. Hunt, “the combination of our two sales forces will far exceed all competition in Central New York in size and scope of service to our customers.” The combined entity will be the largest in Central New York, selling more than 40% more than the nearest competitor in calendar 2008.

According to the company, Hunt will also be expanding its other services in Central New York through the merger, including Hunt Mortgage, a licensed mortgage banker, Network Title Agency, a full-service title agency, Hunt Insurance, a general insurance broker and Hunt Commercial Real Estate. Plans are to merge overlapping offices and services.

A key factor in the ability to successfully merge the two organizations has been the similarity in corporate cultures. “Our Vision is to always be there for our agents and customers, meaning that we value the relationship with our agents and customers before, during and after the transaction, supplying a life-long homeownership services support system,” said Hunt.

“Our core competency is relationship-building,” said Tom Teelin former owner of Prudential First Properties and the Regional Leader for the combined entity. “More than anything, our organization has been built on long-term relationships with our own people and with our customers. We are proud of what our people have accomplished in building a legacy of goodwill in our community. We know that the Hunt organization shares our values and our commitment to our agents and customers,” said Teelin.

Hunt Real Estate Corporation was founded in 1911 by Charles S. Hunt, grandfather of the current Chairman and CEO. The company operates 33 offices in Upstate New York, 3 offices in Sarasota, Florida and one office in the Phoenix, Arizona metropolitan area.

For more information, visit www.huntrealestate.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

RISMEDIA, January 5, 2009-Coldwell Banker Residential Brokerage in Greater Los Angeles has announced the acquisition of the assets of Innovative Realtors, Inc., a leading boutique residential real estate brokerage firm based in Marina del Rey, Calif.

“This acquisition is an excellent opportunity for us to further penetrate our core market,” said Betty Graham, president and COO of Coldwell Banker Residential Brokerage in Greater Los Angeles. “The seasoned industry experts at Innovative Realtors specialize in one of our top geographical areas, and they will further strengthen our presence in the Westside luxury market.”

Innovative Realtors, which is located at 124 W. Washington Blvd. in Marina del Rey, accounted for more than $86 million in sales volume during the last 12 months. It will now operate under the Coldwell Banker Residential Brokerage name.

“Coldwell Banker Residential Brokerage is the market leader in the luxury Westside marketplace,” said Steve Aguilar, founding owner of Innovative Realtors. “The company not only offers us unparalleled brand presence in local markets, but also provides us with the ability to reach national and international markets. As a result of this acquisition, our agents will have the depth of resources required to succeed in this competitive marketplace. We’re thrilled to join their team.”

With this acquisition, Coldwell Banker Residential Brokerage will gain 42 full-time agents, as well as the senior leadership of Steve and Renee Aguilar, who have more than 23 years of combined industry experience and will continue with the company in a sales capacity.

In recent years, Coldwell Banker Residential Brokerage in Greater Los Angeles has made numerous acquisitions of high-profile boutique companies as well as large-scale real estate organizations.

For more information, visit www.camoves.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

RISMEDIA, Jan. 2, 2009-Nestled on over 60 acres with immediate access to more than 100 miles of equestrian trails that meander throughout the Town of Davie, Florida, is Woodbridge Ranches, a distinctive residential community of upscale estate homes by one of the state’s most celebrated home builders.

The flagship community of SH Communities, Woodbridge Ranches is located at Broward County’s last frontier, yet close to all the everyday conveniences a home buyer could ask for.

Here home buyers will find six stunning 1- and 2-story home designs with a total of 19 floor plans and living areas of 2,811 to 6,100 sq. ft. that offer as many as eight bedrooms and 7.5 baths and a host of distinctive architectural features throughout.

“We carefully planned and created a prestigious address for home buyers seeking homes unsurpassed in luxury and unequaled in design, and situated the community it in a pastoral setting where man and nature peacefully co-exist,” said Jerry Aguirre, president of SH Communities which has planned and designed award-winning homes and communities in Florida for nearly three decades, and over the past five years earned the most awards of any builder in Florida’s BEST Awards.

“When it comes to upscale design, premier location and competitive prices, Woodbridge is in a class by itself,” said Aguirre, noting home prices range from $799,990 to over $2 million. “And it gets even better because we have several homes specially priced and ready for immediate occupancy.”

A landscaped buffer surrounds Woodbridge which is comprised 66 home sites, none smaller than 35,000 sq. ft. (140′ x 250′) and all with 40- and 50-foot staggered setbacks from the tree-lined streets. Nearly half the home sites overlook one of two lakes and a preserve area, while a network of lushly landscaped equestrian trails embrace the community on three sides.

To further distinguish the homes and enhance streetscapes, Aguirre said homes are available in four distinctive architectural styles including French Country, Country, Mediterranean, and Florida Vernacular.

“Our deep, staggered setbacks and four distinctive elevations create an upscale ambience and custom home appeal that is unmatched in Broward County,” Aguirre explained.

Inside home buyers are treated to a host of distinctive architectural that are an award-winning SH Communities trademark. Features include rotunda entries with grand staircases, spacious family rooms, state-of-the-art gourmet island kitchens with adjoining cafes, lavish master suites with sitting rooms, sumptuous master baths “with all the luxurious bells and whistles”, plus dens, wine closets, bonus rooms and 3-car garages.

SH Communities also offers a host of options to Woodbridge home buyers including media rooms, game rooms, 4-car garages, hobby centers, maid/nanny quarters, gym/fitness rooms, wet bars and cabana baths.

“Given our flexible floor plans and large home sites with a minimum of 60 feet between homes, there’s lots of room to add other rooms and features such as horse stables and a guest house,” Aguirre said.

Located just south of SW 26 Street between SW 148th and SW 142nd Avenue (Boyscout Road) in Davie, Woodbridge Ranches is just 5-10 minutes from Cleveland Clinic Hospital; a host of schools (K-12) colleges and universities, the I-75 Griffin Road intersection, a Publix Supermarket, and the I-595 and Flamingo Road intersection; and just 15 minutes from Fort Lauderdale Hollywood International Airport and five major shopping malls—Sawgrass Mills, the new Shoppes at Pembroke Gardens, Broward, Weston Town Center, and Fountain Shoppes of Distinction.

The Woodbridge Ranches New Home Welcome Center and four furnished models are located in Woodbridge’s sister community of Grove Creek Ranches on Orange Drive, just ¼ mile west of Flamingo Road.

To learn more about Woodbridge Ranches, call (800) 496-4166 or visit www.shcommunities.com. The New Home Welcome Center and models are open daily from 10 a.m. to 6 p.m. To get there, take I-75 to Griffin Road. Go east 2 miles to Flamingo Road, make a U-turn at the light, turn right over the bridge, then left on Orange Drive. From I-595 go south on Flamingo Road 3.25 miles, and turn right onto Orange Drive. The New Home Welcome Center, is one block on the right.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

To submit your Featured Listing, send 300-500 words on the property, surrounding area, and how you’re marketing it to Kayla@RISMedia.com. Don’t forget to submit photos and an accompanying URL!

Previous Featured Listings on RISMedia.com:

• Waterside Views in a Setting Books Write About  
  Luxury Property Becomes New Home for Renowned Chef  
  Sunday River Real Estate

By Jim Buchta

RISMEDIA, Jan. 1, 2009-(MCT)-This year’s holiday season is likely to be a little cheerier at Kevin Coughlin’s home. Coughlin refinanced the adjustable-rate mortgage on his Shorewood, Minn., house this month into a 30-year fixed-rate mortgage that’s going to save him $200 a month.

“It takes the pressure off the cash flow,” he said, speculating about how he and his family might benefit from the savings. “Whether it’s groceries or the ability to eat out one more time each month-before, you weren’t going to do it.”

Nationally, mortgage rates fell to an average of 5.19%, the lowest level in 37 years, according to a weekly survey released Dec. 18 by Freddie Mac. Some lenders were reporting even lower rates, and area mortgage lenders say applications are pouring in.

It’s too soon to say what effect the rates will have on the moribund real estate market. The most immediate beneficiaries appear to be homeowners hoping to swap their adjustable-rate mortgages for fixed payments.

“This is nearly a historical and probably unprecedented opportunity,” said Keith Gumbinger of HSH Associates, a financial publisher in New Jersey.

Not everyone will be able to latch on to the lower rates. Homeowners whose property values have fallen may not have enough equity to qualify for the lower rates, and lenders are scrutinizing applications more closely now than during housing’s go-go years earlier this decade.

The decline in mortgage rates comes after aggressive moves by the Federal Reserve aimed at propping up the U.S. housing market. On Dec. 16, the Federal Open Market Committee lowered a key interest rate, and last month the Fed said it would buy $600 billion in mortgage-related securities and other debt issued by Fannie Mae, Freddie Mac and the Federal Home Loan banks.

Buying a house is a much more complicated process than simply refinancing, and many prospective borrowers aren’t feeling confident enough about the economy to make a big financial commitment, said Ken Johnson, vice president of the Coldwell Banker Burnet office in Minnetonka, Minn.

But a refinance boomlet is also good news for the broader economy. Millions of homeowners still have costly adjustable-rate mortgages. With access to credit tightening, rates on consumer loans rising and the value of equities falling, the opportunity to lock into a fixed-rate mortgage and to reduce payments could relieve pressure on some household budgets.

On a $200,000 mortgage, for example, a shift from 6.25 to 5.25% interest can save more than $100 per month.

“The recasting of debt could mean many billions of dollars let loose in the marketplace to support a very leaky economy,” said Gumbinger, who said recent 30-year, fixed-rate mortgages were the lowest since the 1960s.

Likewise, a flurry of refinancing could help financial institutions that are saddled with risky mortgage debt by getting those loans off their books and freeing cash for other kinds of loans.

Already, loan officers are saying that their phones are ringing off the hook, mostly with people who want to refinance.

“I’m swamped with calls,” said Randi Livon of Residential Mortgage Group in Minnetonka.

Unfortunately, many callers have no equity or owe more than their home is worth. “Their values just aren’t there, and these are people who are working two to three jobs to make their payment,” said Livon.

With the support of the federal government, Gumbinger said, it’s likely that the historic low rates could linger.

“That support is not going away,” said Gumbinger. “The federal government is not like the private market that has to turn tail and run when things get ugly.”

© 2008, Star Tribune (Minneapolis)
Distributed by McClatchy-Tribune Information Services.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Read more real estate headlines on RISMedia.com:

• Know the Details of the Mortgage Forgiveness Debt Relief Act  
  Housing Officials to Home Buyers - Know Before You Buy 
  More Lenders Offer Mortgage Relief Programs

By Monica Hatcher

RISMEDIA, Dec. 30, 2008-(MCT)-After working a full day and tending to her three children, the last thing Latasha Jones felt like doing was making the rounds in her apartment complex to collect contributions for the building’s water bill. But she had no choice-the landlord, in foreclosure, had abandoned the building and stopped paying it.

More than once over the past year, tenants of the 11-unit complex in Miami’s Liberty City neighborhood had come home to find the water shut off. Eventually, they stopped paying rent and took the matter into their own hands, forming a kind of rudimentary condo association to manage the property.

The foreclosure crisis is creating unique hardships for renters in some apartment buildings. Unlike tenants of condos and houses, apartment dwellers rely on landlords to collect garbage, keep up the premises and make repairs. The cost is included in the monthly rent.

So when a landlord enters foreclosure, those services often stop, leaving residents without vital utilities and sometimes in unsafe conditions. They may be forced to move. Low-income renters sometimes have nowhere to go.

“All I see is homelessness for the holidays,” said Celeste Brown, who has lived in run-down apartments in Miami the last seven years. The owner fell into foreclosure a year ago and a receiver from Great Florida Bank has told residents they need to move by Dec. 31 so the incoming owner can make repairs.

“We’ve been paying rent all these years,” lamented Catherine Jackson, 44, who, for 18 years, has lived in the two-building complex with her husband.

In South Florida, the rental market is full of small, independently owned buildings like the ones in which Jackson and Brown live. After years of stability in this rental niche, during the real estate boom speculators with little experience began snapping up apartments. Now falling property values and miscalculations are forcing many out of business in the downturn.

Some investors wanted to flip but missed the peak and couldn’t sell, said Alan Ojeda, a developer of large-scale rental complexes and towers in Miami.

Others built their business plans around converting rentals into condominiums. When the market crashed and buyers disappeared, many had no choice but to rent the unsold units, Ojeda said. Now, the conversion craze that pushed many renters from their homes during the boom is forcing them out again as more and more buildings go belly-up.

Failed condo conversions make up “the vast majority” of apartments going into foreclosure, said Still Hunter, a vice president of investment in the Fort Lauderdale, Fla., office of Marcus & Millichap, a real estate services firm.

“The problem is widespread,” Hunter said, adding in some cases rental income is not enough to cover loan payments or even property maintenance.

Residents in those buildings find ways to cope. In Jones’ building in Liberty City, before the water started going out, tenants complained bitterly to their landlord to fix the broken water heater. Maxine Bell, another tenant there, found a makeshift solution by buying a Zephyrhills water cooler with a hot-water tap.

“We’ve been out of hot water for a year,” said Bell, 41. When the weather gets chilly, it’s impossible to shower, she said. Another resident, Shanika Rollins, said she has to boil water to bathe.

“It’s like a hurricane, but the lights are on,” Rollins said.

Jones, a teacher’s aide at Hialeah-Miami Lakes High School, networked with friends to find a waste company to pick up the garbage. Tired of the headaches, she moved out last week. It’s unclear who will take over as the building’s de facto property manager, since the lender has not yet foreclosed.

Housing advocates say lenders that financed the purchase of such buildings should take responsibility for the properties when landlords skip out. Providing some relief, Fannie Mae announced this month that it would sign new leases with tenants living in foreclosed properties it owns.

But many banks instead do all they can to avoid taking over, including stalling the foreclosure process so they don’t become owners, said Purvi Shah, an attorney with Florida Legal Services who helped Jones and other tenants sue their landlord before he disappeared.

Between the time the owner stops paying and the lender actually forecloses-a process that can take up to a year-buildings deteriorate rapidly, Shah said.

“If lenders are going to make investments into neighborhoods and into these properties through mortgages, they have an obligation to protect their asset,” Shah said.

In the two buildings where Brown and the Jacksons lived, the former landlord is a foreign investor who is now deceased. After the roof rotted, rain was pouring into their homes, they said. Only after organizing with the help of the Miami Workers Center, protesting and drumming up plenty of press coverage did Great Florida Bank make the needed repairs.

Now they want the bank, in its negotiations with a buyer, to require the new owner to offer them first dibs on their old units after he finishes renovations. They also want help relocating, since short-term rentals are expensive and require deposits.

Richard Langhorne, who represents Great Florida Bank as receiver for the properties, said relocation assistance was not likely since the bank had already given residents the equivalent of $4,500 in free rent since March.

In a recent renters’ meeting, Celeste Brown and others scoffed, saying nobody should have to pay rent in the roach-ridden, waterlogged building.

Mario de las Cuevas, the new buyer, said that after he brings the dilapidated building up to code, he would allow the current tenants to move back in, provided they have a job, a clean record and money to pay the rent. The tenants want the deal in writing.

Joseph Phelan, a member of the Miami Workers Center, said the problem of displaced renters is growing, though little help is coming from the government. Renters, he said, are overlooked by federal foreclosure prevention programs solely designed to help homeowners.

“They’re facing many of the same issues as homeowners, but there is not attention on it,” Phelan said. “They are swept up in the mortgage crisis as well, but they are kind of the unseen victims of it.”

© 2008, The Miami Herald.
Distributed by McClatchy-Tribune Information Services.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Related real estate headlines on RISMedia.com:

• Giving Customers What They Want  
  Homeowners Stymied by Slow Market Try Swapping Rather Than Selling  
  Lenders Nervous about Risk, Even If the Risk Isn’t You

By Alfred and Emily Glossbrenner

RISMEDIA, Jan. 2, 2009-It’s often said that “the Internet changes everything.” Certainly it has changed the traditional relationship between vacation-rental owners and their property managers. At the very least, it has introduced a spectrum of possibilities. For some brave souls, the Internet has made it possible to take on everything: marketing, managing, advertising, maintenance-you name it.

But what if you don’t have the time (or inclination) to screen renters, handle inquiries, maintain an availability calendar, send out rental agreements, and collect payments? What if you just don’t want to do it all yourself?

If you’re not forced to maximize the income your property generates, if your current goal is to simply cover most of your expenses, then going the property-manager route might very well make sense.

But here’s the problem: The really good property managers handle dozens (even hundreds) of vacation rentals. They tend to market them all in the identical way, with a listing on their company’s website. And their goal is to generate as many bookings as possible for their company, rather than for your specific property.

So what can you do to make sure your place stands out from the crowd and gets its fair share of the bookings? How can you help your property manager do the best possible job for you?

Here are some suggestions:

1. Write your own property description. It’s unlikely that your property manager knows anywhere near as much as you do about the joys and pleasures of your place. You can set yourself apart from the competition by creating your own write-up and providing it to your property manager. Put your personality into it. Explain what you love about the place. And be frank. If there’s an ocean view, but you have to crane your neck to see it, go ahead and say so. Then make the point that for a full ocean view, the price would be considerably higher.

2. Take charge of your photos. Unless your property manager is a terrific photographer or has one on retainer, we recommend that you provide your own photos. Enlist the help of a friend (or hire a professional photographer for $200-$300) if you’re not comfortable with a digital camera. Be sure to “dress” the set, pay attention to lighting, and use a wide-angle lens for your interior shots.

3. Augment your management company’s online listings with your own. Most property management companies have their own websites with pictures and descriptions of the properties they manage. But when it comes to getting noticed by the search engines, more is often better. So boost your property’s “search footprint” by listing on several leading sites and directing all inquiries to your property manager.

4. Spread the word with business cards for your property. For less than $25, some sites, such as VistaPrint and OvernightPrints allow you to design your own business card, including a picture of your property and the address of one of your online listings. Plan to order a supply of 100-250 cards to keep on hand. Offer them to friends and business acquaintances who ask about your property.

There really are many ways to get what you want and need from a vacation rental. And the Internet is a big help, regardless of the path you choose. The key thing is to take the reins and use the Internet tools at your disposal to help your property manager keep your place fully booked.

Alfred and Emily Glossbrenner are experienced vacation-rental owners and the authors of How to Make Your Vacation Property Work for You!: The Quick & Easy Guide to Advertising, Renting, Managing, and Making Money from Your Second Home. They also own and operate FullyBookedRentals, a membership website devoted to helping other vacation-rental owners offer their properties effectively and profitably.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

RISMEDIA, Dec. 29, 2008-This week’s headlines from the NATIONAL ASSOCIATION OF REALTORS include: check out the new features at REALTOR.com®; NAR urges industry to make mortgages more attainable; and help in writing real estate advertising from REALTOR Benefits® Publications. For more information, visit www.REALTOR.org.

Take a Tour of the All-New REALTOR.com®

The #1 real estate website is better than ever with more free member benefits and dynamic new site features and functions. New site features include four, larger photos on each listing for free, home value comparisons, interactive maps, links to neighborhood and school reports, and more! Seeing is believing-take a video tour or call 1-800-246-1901 for a personal tour with a REALTOR.com® representative.

NAR Urges Financial Regulators and Industry to Make Mortgages More Attainable

The NATIONAL ASSOCIATION OF REALTORS® applauds recent actions by the Federal Reserve and the Treasury making mortgage interest rates more affordable.

Get Help Advertising Your Listings with Real Estate Advertising Made Easy

Real Estate Advertising Made Easy is a complete marketing tool for anyone involved in real estate. For the real estate professional, the mix and match format to ad writing provides an effective advertisement either for a classified ad or a ’spec’ sheet. In addition, the sales strategies, checklists and action plans will assist in career planning to the professional continually honing their skills level.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

RISMEDIA, Dec. 29, 2008-Federal bailouts. Shrinking credit markets. Dropping interest rates. These are topics that the nation’s critics talk about when describing the many aspects of the economy including real estate. However, Prudential Fox & Roach, Realtors® wanted to hear what Greater Philadelphia homebuyers and sellers thought about the current state of the local real estate market through an online survey conducted in December*.

Among the findings:

- 66 percent of respondents said that it’s a good time to buy a home in the Greater Philadelphia market.
- Fewer than two percent feel it’s a good time to sell.
- Approximately four percent believe that real estate is a bad investment right now.
- Nearly 52 percent of homebuyers and sellers believe that Greater Philadelphia is doing better than the national market, while four percent believe it is worse.

With the current state of the market perfect for first-time homebuyers, the survey found that 26 percent of first-time homebuyers in the Greater Philadelphia Market believe the government is doing enough in terms of incentive programs for first-time buyers to help the real estate market rebound.

“We’re in a holding pattern right now, waiting for next spring to gauge whether the real estate market will rebound in 2009 or take more time to heal,” said Steve Storti, senior vice president of marketing for Prudential Fox & Roach, Realtors. “Clearly, Greater Philadelphia is in much better shape than so many other markets reported in the national media. I am heartened to learn so many local homebuyers and sellers agree and haven’t been discouraged.”

Of the 25 percent of respondents actively looking to sell their current home and buy a new home, nearly 56 percent believe the value of their current home has decreased, while 19 percent believe value has risen. With the average days a home remains on market increasing, 57 percent of respondents are waiting to buy until their homes are sold.

Online tools and news sources are becoming increasingly popular with nearly 76 percent of all respondents relying on online news web sites for information about the state of the real estate market. However, 39 percent of respondents also rely on friends, family and neighbors for information about the market.

First-time Homebuyers

With current market conditions positive for buyers throughout the Greater Philadelphia region, Prudential Fox & Roach engaged first-time homebuyers. In the survey, 24 percent of all respondents categorized themselves as a “first-time homebuyer.” Nearly 53 percent of first-time homebuyers decided to purchase a home because they are tired of renting, while 44 percent cited a change in life situation such as marriage, new job, etc.

Other first-time homebuyer findings include:

- 70 percent of first-time homebuyers are under the age of 40, with 28 percent younger than 30.
- 21 percent of respondents plan to move within two months, but 52 percent are waiting more than six months.
- 66 percent of first-time homebuyers looking at new construction believe deals on new homes are more attractive now than in previous markets.
- 56 percent said the kitchen is the most important room in the house.

“New construction is attractive and now more affordable for first-time homebuyers. Builders need to sell inventory and in some cases are willing to customize homes for the right buyer. Also, markets with affordable property taxes and low traffic commutes also stand to benefit,” said Storti.

Additional findings - June 2008 vs. December 2008

The survey also indicated 25 percent of respondents are currently looking to sell a current home - down from June’s survey when 28 percent replied the same way. As for reasons for moving, nearly 44 percent of respondents have outgrown their current home and almost 35 percent have had a change in life situation. In June, 43 percent stated they have “outgrown their current home” and 30 percent stated a “change in life situation.”

In line with June’s survey numbers, 73 percent of survey respondents thought “it’s a good time to buy,” compared to 66 percent during the December survey. Confidence in the Greater Philadelphia real estate market compared to the national market has increase from the June survey at 48 percent to the December survey at 52 percent.

“More buyers are on the fence, while sellers are waiting to buy before selling their current home. However, it’s important to note that low interest rates and first-time homebuyers are looking for the ‘perfect‘ first home. So, a home in good shape, priced right and in a good location will sell,” said Storti.

*EDITOR’S NOTE: Prudential Fox & Roach invited 38,256 Home Pilot subscribers to respond to the survey. Home Pilot is the online home search tool featured on Prudential Fox & Roach’s website. Conducted online between December 10, 2008 and December 22, 2008, the survey received 1,595 completed and another 68 partially completed surveys. The complete results will be posted to the new Prudential Fox & Roach HomExpert Market Report website, www.HomExpertReport.com, and are also available upon request.

For more information, visit www.HomExpertReport.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

RISMEDIA, Dec. 29, 2008-Better Homes and Gardens Real Estate LLC recently announced that Ventura Barnett Properties - an entrepreneurial Silicon Valley-based real estate company - has signed a long-term franchise agreement to operate as Better Homes and Gardens Real Estate Ventura Barnett Properties. The new relationship adds significant brand value and resources to Ventura Barnett Properties, whose offices are headquartered in San Jose, Calif. The residential brokerage firm has two offices and 145 sales professionals who primarily serve clients in the Santa Clara County area.

“Our affiliation with Better Homes and Gardens Real Estate was a unique opportunity to enhance our service offerings with cutting-edge technology and a brand with a strong history,” said Tony Ventura, broker/owner, Better Homes and Gardens Real Estate Ventura Barnett Properties. “In a region made up of clients who expect a certain level of attention, this strategic relationship will allow us to deliver beyond that expectation, while serving as a catalyst for our company’s growth throughout the valley.”

According to the company, as part of the Better Homes and Gardens® Real Estate franchise system, sales associates with Better Homes and Gardens Real Estate Ventura Barnett Properties will have access to innovative tools, services and training that will enable them to deliver exceptional customer service. The company’s property listings will be marketed through BHGrealestate.com, an online real estate destination designed to both inform and inspire consumers through rich content and market intelligence.

“As an organization committed to forward thinking, growth and long-term success, Ventura Barnett Properties embodies the spirit of Better Homes and Gardens Real Estate as we build toward the future,” said Sherry A. Chris, president and CEO, Better Homes and Gardens Real Estate LLC. “The whole team at Better Homes and Gardens Real Estate Ventura Barnett Properties shares Tony’s passion to deliver an exceptional consumer experience and have established for themselves a notable reputation that aligns well with our brand.”

For more information visit www.bhgrealestate.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

RISMEDIA, Dec. 24, 2008-Dallas-based AHK Realty, Inc., a subsidiary of AmericaHomeKey, Inc., announced that it has acquired the real estate firm Prudential Texas Properties. With this acquisition, Prudential Texas Properties will now be both locally owned and operated.

Lane Terrell, Chairman and CEO of AmericaHomeKey, Inc., said that the purchase of Prudential Texas Properties is part of AHK’s overall growth strategy.

“Two key components of a successful real estate company are market presence and name recognition and Prudential Texas Properties has both. This will serve as an advantage as we continue to grow our real estate operations through mergers, acquisitions and recruiting.”

Leading the growth effort is AHK Realty’s Chief Executive Officer and Partner Leslie Rouda Smith, a 30-year real estate veteran and founder of another prominent Dallas-based real estate brand. She said, “This is a real opportunity for growth and to increase our market share. We’ve got the backing a strong parent company, established brand name and an experienced management team. We look forward to growing our operations in the Dallas/Fort Worth Metroplex with additional office locations in the near future and are committed to ensuring the Prudential Texas Properties brand is the first choice for North Texas consumers who want to either buy or sell their home.”

Rick Wylie, president of Prudential Texas Properties, said, “We are thrilled to have local ownership. Because the shareholders of AHK Realty live and work in the community, they understand our market strengths and challenges, which really bring value to our operation. The consumer also benefits from the acquisition, because we can offer more in one-stop shopping with real estate, relocation services and now local mortgage services through our new affiliation with AmericaHomeKey.”

Prudential Texas Properties is an independently owned and operated member of Prudential Real Estate and Relocation Services, Inc., a Prudential Financial company. The company has 10 offices and approximately 400 sales professionals in the Dallas area.

AmericaHomeKey, Inc. is a Dallas-based mortgage bank and real estate services company with operations conducted out of 37 offices in 16 states.

For more information, please visit www.prudential.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

RISMEDIA, Dec. 24, 2008-With the recent Federal Reserve Board action resulting in lower mortgage interest rates in the 4% range, the Illinois Association of Realtors(R) is optimistic this will be an encouraging incentive for home buyers in the new year, states Illinois Association of Realtors(R) President Pat Callan. According to the Illinois Association of Realtors (IAR) latest report, total home sales (which include single-family homes and condominiums) were down 33.9% in November 2008 to 6,076 sales compared to November 2007 sales of 9,191. Year-to-date January through November 2008 sales were down 24.1% to 100,435 homes sold compared to 132,388 homes sold in the same 11-month period in 2007.

According to the association, year-to-date January through November 2008, the median price was down 7.9% to $186,000 compared to $202,000 in 2007. The median is a typical market price where half the homes sold for more, half sold for less. For the month of November, the Illinois median price was $165,000, down 13.2% from $190,000 in 2007.

“The housing market was stalled in November due to a deepening recession which hit our economy with blunt force this fall. No one should be surprised at these figures given what happened with the financial markets in the past few months,” said Callan, broker-owner of Realty Executives Premiere in Wheaton.

“Looking ahead, we are encouraged by the Federal Reserve Board’s action last week to get our economy moving again with the announcement to lower the federal funds rate. The Realtor Association has been calling for mortgage rate reductions and recent action to drive down interest rates should be attractive to home buyers who have been waiting on the sidelines to enter the market. With interest rates the best they have been in 50 years and peak inventory levels, there are unique buying opportunities.”

The Association also supports making the $7,500 tax credit for first-time home buyers — part of the Housing and Economic Recovery Act that took effect last July - available to all home buyers and eliminate the repayment requirements associated with the tax credit.

The Association also supports making the 2008 FHA, Fannie Mae and Freddie Mac loan limits permanent to expand mortgage affordability at a time when home sales and refinancing activity are required to stabilize the housing market.

“Now is not the time to limit mortgage availability if we want to see improvement in the housing market,” Callan stated in response to the fact that new rules for 2009 will reduce FHA loan limits. “FHA-backed loans are quickly becoming the mortgage option of choice for many home buyers, particularly first-time home buyers. We would like to see the limits stay at the current 125% of the HUD published median price and not reduced down to a lesser amount as scheduled on January 1, 2009.”

The monthly average commitment rate for a 30-year, fixed-rate mortgage for the North Central region was 6.13% in November 2008, down 0.12 points from the 6.25 average rate the previous month, according to the Federal Home Loan Mortgage Corporation. Last year in November it averaged 6.25%. The December 18th mortgage market survey report issued by Freddie Mac reported 30-year, fixed rate mortgages were at 5.19% (the lowest since the survey began in April 1971).

According to the IAR report, median home prices were up in 35 of 101 Illinois counties reporting in November including DeKalb, up 1.7% to $183,000; Effingham, up 6.0% to $83,750; Kankakee, up 0.3% to $129,900; Marion, up 3.4% to $62,000; Rock Island, up 8.3% to $109,900; Saint Clair, up 6.0% to $124,500; and Stephenson, up 6.7% to $84,000.

“The combination of lower mortgage interest rates and a major infrastructure investment program that is anticipated from the Obama administration offer the best hope for some turnaround in the housing market in the next year,” said Dr. Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory (REAL) of the University of Illinois. “Of concern, Illinois forecasts for the next 12 months suggest job declines of the order of 50,000 to 55,000.”

In the Chicagoland Primary Metropolitan Statistical Area (PMSA) home sales (which include single-family and condominiums) totaled 3,910, down 32.3% from 5,774 home sales in November 2007. The Chicagoland PMSA, as defined by the U.S. Census Bureau, includes Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will counties.

Year-to-date January through November 2008 sales for the Chicagoland PMSA were down 26.5% to 64,445 homes sold compared to 87,624 homes sold in the same 11-month period in 2007.

The year-to-date median price is down 4.9% to $242,000 compared to $254,500 in the period January through November 2007. In the month of November, the median home sale price for the Chicagoland PMSA was $207,745, down 15.9% from $247,000 in November 2007.

In the city of Chicago, November total home sales (single-family and condominiums) were down 41.3% to 1,057 sales compared to November 2007 sales of 1,801. The city of Chicago median price in November was $222,500, down 23.3% from $290,000 in November 2007.

David Hanna, president of the Chicago Association of Realtors echoes Callan’s concerns: “The Realtor Association is calling upon the federal government and mortgage industry to address continuing problems that are impeding the delivery of mortgage credit to potential home buyers. Mortgage insurers need to make sure they have not over-corrected and added unnecessarily strict underwriting standards preventing people from qualifying for a mortgage. The lack of practical and affordable loans will continue to stymie the recovery effort.”

Sales and price information is generated from a survey of Multiple Listing Service sales reported by 35 participating Illinois REALTOR(R) local boards and associations.

For more information, visit www.illinoisrealtor.org.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

RISMEDIA, Dec. 23, 2008-Toward the end of a three-hour seminar held at the UN on Dec. 16th - “The Real Estate and Financial Crisis: Causes, Effects and Impacts on Development” - Moderator Ken Brown, editor of The Wall Street Journal’s “Money and Investing” section, asked the distinguished global panel one challenging question: “How do we get out of this mess?”

Given the scope and complexity of the crisis that has engulfed both Wall Street and Main Street throughout the world, there were no panaceas forthcoming. However, panelist Steve Williams, Past President of RICS, summed up the group’s consensus by stressing the need for transparent valuation standards and responsible regulation based on collaboration between the public and private sectors, as driving forces behind a recovery in today’s uncertain real estate and financial markets.

“This crisis underscores the need to establish the real value of underlying assets”, said Williams who also Chairs the RICS Americas Valuation Council. “But rather than being despondent, we find ourselves with a golden opportunity to reconfigure the regulations regarding valuation standards and accountability.”

Williams went on to stress the need to bring more transparent market data into the valuation process and to ensure that appraisers work independently of any external pressures. Public-Private Partnerships, he noted, will be the catalyst for a recovery. National and international regulatory agencies must work with private sector experts to agree on standards that put the public interest first. “Only then,” he suggested “will trust and confidence return.”

It is with these goals in mind, that United Nations Economic Commission for Europe’s (UNECE) Real Estate experts are talking to Williams about writing goals guidelines for the next meeting of its Real Estate Markets Advisory Group in Rome next March.

“Even before the tsunami of credit washed onto Main Street, RICS in the United Kingdom, the U.S. and internationally, has mandated a public interest agenda,” Mr. Williams noted, “RICS with the help of UN agencies is keen to bring its public interest message and global reach to the challenge of finding meaningful solutions to the current crisis.”

UN Seminar/ Dec. 16, 2008/ Panelists

Opening Remarks:

Asha-Rose Migiro, UN Deputy Secretary-General

Moderator:

Ken Brown, Editor, Money and Investing, The Wall Street Journal

Panelists:

Paolo Garonna, Officer-in-Charge, UNECE
Jomo Kwame Sundaram, UN Assistant Secretary-General for Economic Development, DESA
Steve Williams, Past President, RICS Americas, RICS Americas Valuation Chairman, visiting lecturer at Duke University, and author of the book Facing The Global Challenge
Daniel Gros, Director of the Center for European PolicyStudies
Luis Fernando Correa-Bahamon, World President, FIABCI
Andreas Zehnder, Managing Director, European Federation of Building Societies, and President of the Association of Private Bausparkassen
Peter Creuzer, Chair of the UNECE Working Party on Land Administration
David Egiashvili, Member of the UNECE Real Estate Market Advisory Group

For more information, visit www.ricsamericas.org or e-mail RICS Americas at ricsamericas@rics.org.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

MLS Matters by David Charron

RISMEDIA, Jan. 2, 2009-It’s that time of year again. Time to dust off the crystal ball, peer deep into its hazy core, and make a few predictions. Predicting the death of the MLS will become less fashionable and more ridiculous.

The MLS industry is fragmented, sometimes slow to move and subject to a host of competing political considerations. We are also facing increased competition. But the MLS is not going away.

Here’s why. We-our members-have the content. Listings and content, as the saying goes, are king. Second, we have adoption. The MLS is not an ancillary service. It is a core tool. If MLS operators can add new value to their service in the coming year, they will continue to remain a central piece of their members’ business.

“Overlapping market disorder” will become more orderly.

This affliction-the condition of requiring members to join multiple MLS organizations with separate systems to practice in their own market area-has plagued us for too long. The good news is curative measures are taking hold.

I do not know of an MLS that is not considering or implementing some form of data sharing or consolidation. Technology is not the inhibitor to these efforts; politics and money, however, are. But the political tides are turning, and budgets are sure to follow. Brokers and agents will demand it because consumers want it.

NAR’s Realtor Property Resource Center (aka The Library)

I actually like this idea. However, the length of time it has taken to move (no pun intended) from concept to reality, coupled with the stealth communications campaign that surrounds it, gives me some pause. Coming from an industry that is attempting to redefine itself as one that promotes openness and transparency, this is problematic.

I know-we are not supposed to tip our hands to the bad guys. But come on!

Broker apprehension about public MLS portals will wane in most markets.
The debate about whether or not an MLS should maintain a public search portal has sizzled for the past couple years. That sizzle will become a simmer in 2009.
While local conditions ultimately dictate whether or not this makes sense in any given market, it will be increasingly common for brokers to look to leverage their MLS in new ways in the coming year. Why? Because they have to.

Online real estate companies will court MLSs like elusive lovers.

It’s already happening. I’ve been on a few dates myself. Big online real estate sites, perhaps realizing the peril of offering incomplete listing coverage to increasingly sophisticated consumers, are actively trying to cut deals with MLS organizations. Look for us to get enticed with everything from offers of revenue share to statements on certain pages that the user “should consult with a real estate professional to get more precise information…”

The difference between private and public MLS systems will blur.

Those MLSs that are successful with public entry portals will start considering the potential to merge certain elements of the consumer and professional database. As the lines blur between what is available to both parties, the cost of managing and innovating separate and distinct systems will come into question. Fast. This is going to be fun and will provide some great opportunities for innovation!

Mine is a partial view, bounded by my own position and biases. I am interested in alternative visions. I suspect you are too. E-mail me (david.charron@mris.net) with your ideas. I’ll share them in a follow-up article.

David Charron is CEO of MRIS (Metropolitan Regional Information Systems, Inc), the nation’s largest MLS.

For more information, please visit http://mris.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.