HUD Launches New One-Stop Website for Economic and Housing Data

The U.S. Department of Housing and Urban Development has unveiled a new website (hud.gov/datamap) that consolidates a wide variety of economic and housing market data at the regional, state, metropolitan area and county levels. 

Using data from the Census Bureau, Labor Department, state and local governments, housing industry sources, as well as HUD’s own field economists, the new website employs interactive maps that allow visitors to access a variety of reports—from a region-wide look at employment and housing activity to individual county-level figures on population trends, rental activity and vacancy rates. 

“This is a powerful new tool that’s easy to use and offers the public a remarkable look at their local economic and housing markets,” said Dr. Raphael Bostic, HUD’s Assistant Secretary for Policy Development and Research. “Current and reliable data shouldn’t be hard to come by. This is precisely why this site will be so helpful to state and local leaders, developers, the real estate industry, and the general public who need the latest available data on their markets.”

HUD’s new website displays an interactive map of the U.S. allowing visitors an intuitive way to seek data in a number of areas of geography – from an entire region down to a particular county. In particular, the portal offers the following reports:

“Market at a Glance” reports contain economic and housing market data trends for every metropolitan area and county nationwide with employment data updated on a monthly basis. Employment data is provided from the Bureau of Labor Statistics and housing data is derived from the Census Bureau’s American Community Survey. Some adjustments are made by HUD field economists based on regional information. The data are expected to be released on a monthly basis for most of the metropolitan areas and counties. Eventually these reports will become “live” documents enabling field economists to include analysis as they complete more in-depth research for specific areas and monitor local conditions. 

“Regional Housing Market Profiles” are based on the quarterly U.S. Housing Market Conditions report and include non-farm employment, population changes, and building activity. These regional profiles also focus on the most recent housing rental and sales activity for the past two years. In addition, approximately 10-12 individual metropolitan areas are specifically profiled each quarter to provide these same data down to the metro area level.

“Regional Narratives” are broad overviews of economic and housing market trends within 10 regions of the U.S. These narratives are based on information obtained by HUD economists from state and local governments, from housing industry sources, and from their ongoing investigations of housing market conditions 

“Comprehensive Housing Market Analysis” – Periodically, HUD field economists focus on particular metropolitan housing markets to produce counts and estimates of employment, population, households, and housing inventory. Each housing market analysis considers changes in the economic, demographic, and housing inventory characteristics during three periods: from 1990 to 2000; from 2000 to the as-of date of the analysis; and from the as-of date to up three years in the future.


RISMEDIA

From Coast to Coast, Home Buyers Bid Above Asking Price

Some homes across the country at various price points are selling above asking price, according to the Q3 2010 Home Hunter Report released by ZipRealty. The report reveals that in Q3 2010, California was home to five out of the country’s ten “hottest” zip codes, defined as those zip codes where the average home sale price is most above the average list price by percentage. This is down from California having seven of the top ten hottest zip codes last quarter.

Similarly, the report found that five out of ten zip codes nationwide where homes were selling most below asking price for the same time period were located in Florida. Florida is also down from seven of the markets selling most below asking price in the previous quarter, pointing to a diversification in both the highest and lowest sales-to-list price ratios across the country.

Highlights from the ZipRealty Q3 2010 Home Hunter Report:

-The Chicago area’s Greater Grand Crossing neighborhood (60619) is the country’s “hottest” zip code, with homes selling on average for almost 9% above the asking price. Another Chicago neighborhood, downtown’s Loop (60603), also tops the list, with condos in this high-end zip code selling for an average of more than $1 million, or an average of more than 5% above the asking price in Q3.

-A San Francisco proper neighborhood, the Excelsior, made the country’s top ten list for the first time, with homes selling for an average of more than $14,000 above asking price in Q3. While California no longer entirely dominates the country’s “hottest” markets list, three of the ten zip codes selling most above asking price nationwide were located in the Bay Area, including two in Oakland and one in Berkeley.

-In addition to California and Chicago, rounding out the “hot” list in Q3 are Covington, Wash., outside of Seattle, Fort Lauderdale, FL,—both new to the “hot” list—and North Las Vegas.

-Overall, the hot markets are selling for significantly less above asking price than they were at the same time last year. Homes in the country’s ten hottest zip codes sold for an average of 5% above asking price in Q3 of this year, as compared to an average of 13% above asking price in Q3 2009.

-In the country’s “coldest” zip code, 27708 in Durham, N.C., homes sold for an average of only 81% of the list price in Q3.

-The spread of the sales-to-list price ratio lessened significantly from one quarter previous, with homes in Q2’s coldest market—Winchester, Conn., —fetching only 72% of asking price on average last quarter.

-High-end housing markets continue to offer relative bargains for buyers, with homes in the 34102 zip code of Naples, Fla., selling on average for $370,000 below an asking price of almost $2.3 million, and homes in the 33480 zip code of Palm Beach, Fla., selling on average for $212,000 below an asking price of more than $1.2 million.

“While we’ve seen California top the list of the country’s ‘hottest’ home sale markets for some time, we’re now seeing signs that buyers in other markets across the country—including hard-hit regions like Florida and Las Vegas—may be taking advantage of the historically low pricing and interest rates characterizing today’s market,” said John Oldham, director of marketing for ZipRealty. “The gap between homes selling most above and below asking price appears to be decreasing, an encouraging sign that prices may be stabilizing and both buyers and sellers could be adjusting to the new market reality.”

Phoenix is Nation’s Most Popular City for Home Hunters
According to the total number of home searches on www.ZipRealty.com throughout Q3, the Phoenix area remains the most popular city searched for the second straight year, or eight consecutive quarters. Phoenix proper and its suburbs claimed eight of the top 25 most searched cities, while the Las Vegas area took ten of the spots on that list. Florida had a stronger representation in the top 10 most searched list than in quarters before, with Kissimee and Ft. Lauderdale joining Orlando in the top searches list.

RISMEDIA

Mortgage Rates Rise Significantly

Mortgage rates increased again this week, with the average conforming 30-year fixed mortgage rate now 4.62 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.37 discount and origination points. 

To see mortgage rates in your area, go tohttp://www.bankrate.com/funnel/mortgages/.

The average 15-year fixed mortgage increased to 4.02 percent, and the larger jumbo 30-year fixed rate soared as well to 5.24 percent. Adjustable rate mortgages also climbed higher, with the average 5-year ARM inching higher to 3.71 percent and the average 7-year ARM rising to 4.01 percent. 

Mortgage rates jumped significantly this week, posting a second consecutive weekly increase since the Federal Reserve announced renewed measures to boost the economy. Worries that the Fed's quantitative easing program will spark higher inflation, coupled with stronger economic data on retail sales and weekly unemployment filings fueled the latest increase. Although mortgage rates have increased, they remain extremely low in a historical context and will not be an impediment to well-qualified borrowers for the foreseeable future. 

The last time mortgage rates were above 6 percent was November 2008. At that time, the average rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 4.62 percent, the monthly payment for the same size loan would be $1,027.68, a savings of $214 per month for a homeowner refinancing now.
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October 2010 Market Report for Albuquerque Areas

• Pending sales for detached single-family homes in the month of October were at 655, down less than 1 percent from the previous month.

• The median sale price for single-family detached homes saw a year-over-year increase for the 2nd consecutive month.

• New homes entering the market for sale saw a 6.72 percent decrease from the previous year, while the current inventory of homes for sale rose 11 percent from the same period.

 Read the full October 2010 Market Report

Avoiding Foreclosure

Few things are as devastating as losing your home. Sadly, it's not always inevitable. In many cases the foreclosure could've been avoided with some outside help.

Here are some of the hidden difficulties that will arise if foreclosure occurs.

Finding a new home. Don't believe that it will be better to let the foreclosure happen, because after you lose your home, you will still need to find a new place to live. All too often, the price you will need to pay in rent will be almost as high if not higher than your current mortgage payment. Remember: The owner of the property needs to make his mortgage payment, too, so he's going to charge a rental payment that's higher than his mortgage costs.

Deficiency judgment. It's not uncommon that the sale of the home is insufficient to cover the remainder of the mortgage. When the property has been damaged, or market values have dropped, the owner may end up with a bill in the tens of thousands for the difference.

Despite what many people think, most lending institutions are not anxious to foreclose. It's a last-ditch effort to recover their money and minimize their losses, and it's an incredible hassle. Most lenders would rather avoid it, if possible. There are multiple sources for help that you should be aware of, and most lenders will be happy to hear that you are going to try to keep your home rather than just await a foreclosure.

Housing Counseling Agency. The US Department of Housing and Urban Development maintains a list of HUD-approved counseling agencies. Call (800) 569-4287 to find the agency nearest you.

FHA-Insurance fund. FHA borrowers may qualify to have HUD make a one-time payment to bring their mortgage current. See www.hud.gov/foreclosure for more information on the requirements to qualify.

Different mortgage program. Talk to a loan officer about the possibility of refinancing your mortgage to a more affordable program.

Special Forbearance. Many borrowers can qualify for a new payment structure if they've had an increase in their cost-of-living, such as unexpected medical expenses, or a decrease in wages. This payment structure will allow the owner to repay the lender in a given time frame.

One Reason for Housing Glut: Fewer New Households

U.S. household formations are at their lowest since 1947, data from the Census Bureau show. And that's helping to keep the supply of unsold homes at near-record levels nationwide, even though relatively few houses are being added to the inventory.

Between March 2009 and March 2010, the number of households rose just 357,000, according to the census data. In the previous 12 months, the number increased only 398,000, the third-smallest increase on record since World War II.

Between 2002 and 2007, before the economy started on its downward trajectory, household formations averaged 1.3 million a year, U.S. census data show.

"That's the consequence of the consumer fear of what's happening with the economy and with the job market," said Lucien Salvant, a spokesman for the National Association of Realtors.

"When people are afraid of losing their jobs or not being able to get into the job market, they are not thinking about buying a home," Salvant said. "Many opt to stay at home with parents, or to share rentals with friends."

The nation's gross vacancy rate — the proportion of housing units that are vacant — stood at 14.5 percent at the end of the second quarter of 2010, census data show.

In a well-functioning economy, household formations "would be closer to 1.25 million," said Mark Zandi, chief economist of Moody's Analytics in West Chester, Pa.

During normal times, builders need to add about 1.7 million houses a year to meet underlying demand stemming from, among other things, the need for replacement homes and the desire for second homes, as well as conversions from nonresidential to residential uses and increases in the number of households.

For example, about 250,000 new homes are needed per year to replace houses that are destroyed by fires and natural disasters or that wear out from neglect or old age. Demand for second homes combined with other miscellaneous factors accounts for 50,000 to 100,000 new houses a year.

Household growth typically requires 1.3 million to 1.4 million units.

"The sharp drop in household formation largely explains why the housing glut remains stubbornly high, despite the plunge in housing starts in recent years," said housing economist Patrick Newport, of IHS Global Insight in Lexington, Mass.

Two major sources of household formation — immigration and marriage — remain well below the averages of recent years.

The National Center for Health Statistics reports that the number of marriages per thousand population fell from 8.2 in 2000 to 6.8 in 2009. Divorces per thousand population fell from 4.0 in 2000 to 3.4 in 2009.

There are no hard data on "doubling up" — young people sharing rentals or moving in with their parents in a tight job market — though anecdotal evidence indicates the latter has become more commonplace in recent years.

During the late 1990s and in the first years of this decade, the housing industry banked on immigration for a good part of its growth.

Between 1990 and 2000, the U.S. population grew by nearly 33 million, with almost half of that gain attributable to immigration, according to data provided in 2003 by James Johnson Jr., a professor at the Kenan-Flagler Business School at the University of North Carolina-Chapel Hill.

In the 1990s, census data show, immigrants accounted for 250,000 household formations a year. Immigrants typically rent for their first few years in this country, housing economists say. Then, after becoming established, they become a major factor in the for-sale marketplace.

Newport believes that a drop in immigration might have played a greater role early in the recession than it did later on. In 2009, census data show, households headed by the native-born under age 35 fell by 338,000, indicating that doubling up was the larger contributor.

The number of households headed by those ages 15 to 24 fell 124,000 (students moving back in with parents), while households with six or more people rose 355,000, an 8 percent increase.

A common misconception, Newport said, is that foreclosures account for the oversupply of houses.

"A foreclosure or a bank taking possession of a home," he said, "does not by itself add to the housing glut."

If a household vacates a home and moves into a rental unit, the housing supply is unchanged. Supply increases, however, if one household moves in with another, Newport said, or if its members become homeless.

(c) 2010, The Philadelphia Inquirer.

2010 3rd Quarter Home Sales Report & RECAP for the Greater Albuquerque Area

•Homes sales for single-family detached homes in the Greater Albuquerque Market Areas are down 23.66 percent from 3rd Quarter 2009.

•When compared to 3rd Quarter 2009, 6 MLS areas in the City of Albuquerque and City of Rio Rancho saw positive increases in home sales while 7 areas saw increases in the median sales price.

 Read the full 2010 3rd Quarter Sales Report

6 Reasons Why It's Smart to Buy a Vacation Rental Home

Lately, you've been thinking a lot about investing strategies. You have a small nest egg that needs to grow, but frankly you don't trust the stock market. (If you're like many investors, your 401(k) hasn't fared well in recent years.) And while real estate has been somewhat of a rocky road in recent years, it's still a solid long-term investment strategy—and clearly we're in a buyer's market. But you aren't really interested in being a landlord. What to do?

Christine Karpinski has a suggestion: Purchase a vacation home and rent it out to travelers.

"Vacation homes are almost always a good investment," says Karpinski, director of Owner Community for HomeAway—te the world's leading vacation rental marketplace—and author of How to Rent Vacation Properties by Owner, 2nd Edition: The Complete Guide to Buy, Manage, Furnish, Rent, Maintain and Advertise Your Vacation Rental Investment (Kinney Pollack Press, 2007, ISBN: 0-9748249-9-2, $26.00).

"First, if you're looking for a good long-term investment, real estate tends to be a good bet," she adds. "Second, vacation properties have the ability to pay for themselves, and owners often earn a profit in rental income. Third, the investment comes with the desirable perk of having a place at the beach or in the mountains to call your own. And finally, there has never been a better time to buy a vacation home—it's like the planets have all lined up perfectly."

Karpinski, who owns vacation homes in several parts of the country, says she herself is looking for new properties to invest in. Overall, she says, the vacation home rental market is a burgeoning segment of the economy.

Want to know more? Read on for a few reasons why there's never been a better time to go vacation rental house hunting: 

There have never been so many properties on the market. For potential home buyers, there is a silver lining to the slow economy and the housing crisis: Most vacation markets are chock-full of buying opportunities. Once you've pinpointed the vacation rental market that is right for you—The coast? The mountains? A ski resort area?—you will likely have a lot of properties to choose from.

"There are many properties available right now in many different areas," says Karpinski. "Once you start hunting, I think you'll be pleasantly surprised at what you find. But I must offer one caveat: Before you let yourself fall in love with a property, make sure it is legal to rent it out as a vacation home. Some areas and homeowners' associations do not allow short-term rentals."

Prices aren't going to get much better. In fact, they're the lowest they've been in five to ten years. If you're pretty sure you want to buy a vacation home "someday," you might want to quit procrastinating and pull the trigger, says Karpinski.

"Prices should increase eventually," she points out. "Now is the perfect opportunity to make a really sound investment. In fact, speaking from my own perspective, I'm afraid that if I don't take the plunge now, I'll look back ten years from now and say, 'Why the heck didn't I buy back in 2010?'"

Interest rates are very favorable for purchasing. Today, mortgage interest rates are low. Bottom line: Take advantage of them while they last. 

These days, you have access to the best real estate professionals. Anyone connected to the housing market who managed to survive the housing crash had to be at the top of his or her game. That means the agents left standing today—including the ones you'll be working with in your search for the perfect vacation home—are possibly the best of the best.

"Quite simply, the real estate professionals still working today are the top in the business," says Karpinski. "And because vacation home renting has become so popular, they are more knowledgeable than ever. Use their knowledge to your advantage. They are at your service when it comes to helping you hunt down the best property for you."

It's never been easier to rent your vacation home. As mentioned earlier, vacation home rentals have never been more popular. More and more consumers are choosing to stay in cozy condos, cabins, and chalets instead of cramped, impersonal hotel rooms when they travel. And as market demand has surged, organizations have sprung up to help connect vacation homeowners with these potential renters.

If you buy now, you can be ready for the 2011 peak season. It's true that the longer you wait to buy, the likelier it is that interest rates could rise. But there's another reason not to procrastinate: If you buy now, you'll have time to get your property ready for peak rental season. Experienced vacation homeowners often find that the rental fees generated during the twelve weeks between Memorial Day and Labor Day pay their mortgages for an entire year—and most inquiries come in between January and March.

"Even turnkey properties aren't really turnkey," notes Karpinski. "To get your property up to your standards, there will very likely be things that you will want to spruce up. Rooms might need repainting. Decorating will need to be done. And the yard might need some work. By buying now, you will have a cushion of time to get the home ready for your guests, take great photos for your property listing, and start marketing it to potential renters."

"Someone is going to be smart enough to take advantage of the great buying opportunities available today," says Karpinski. "That person might as well be you."


RISMEDIA

What You Should Know Before Buying a Home

There are so many things to understand as you embark on purchasing a home, especially if it's your first purchase. Learn the basics as you get started and understand everything you need to know as it relates to financing. 

Here are 10 tips about financing:

1. Before you start looking for a home, get pre-qualified for a loan.Banks, credit unions and mortgage bankers make home loans; mortgage brokers process them. The lenders will take an application, process the loan documents, and see the loan through to the funding stage.

2. If you have marginal or bad credit, consult your lender. You may be able to qualify for a loan depending on how long ago and what reason(s) caused the bad credit. A lender should be able to advise you on whether your credit history will prevent you from qualifying for a home loan.

3. You will need a down payment. Down payment requirements vary depending on the type of loan. Many down payment assistance programs exist. These programs may loan or grant you the funds necessary for the down payment. Consult with a lender about programs available in your area.

4. You will need funds for closing costs Closing costs are charges for services related to the closing of your real estate transaction. They include, but are not limited to:

* Escrow fees charged by the company handling the transaction
* Title policy issuance fees charged by the title insurance company
* Mortgage insurance fees
* Fire and homeowners insurance
* County Recorder fees for recording your deed
* Loan origination fees

Consult your lender for an actual estimate of these costs, as well as information about loan programs which can assist in financing your closing costs

5. Some loans have "points" and some do not. A point is a loan origination fee equivalent to 1% of the loan amount. Together with the interest rate they constitute the yield on your loan for the lender. Some lenders charge a higher interest rate to compensate for charging no points. It is important to comparison shop lenders to make sure your loan is at a competitive yield.

6. Should you select a mortgage with a fixed rate or an adjustable rate?The answer to this question depends on whether mortgage rates are at a high or a low point when you purchase, and on how long you plan to live in the home. If rates are high, an adjustable rate might be attractive since subsequent rate drops could reduce your monthly payments. Additionally, lenders may offer a low rate during the first few years of an adjustable mortgage to make it appealing to you. If interest rates are low you might want to take a fixed rate to protect yourself against the possibility of rising interest rates.

7. Be aware of the two main types of loan categories.
* Conventional Loans. Conventional mortgage loans are available with fixed or adjustable interest rates. Some loans may require mortgage insurance.
* Government Loans. These include Federal Housing Administration (FHA) fixed and adjustable rate mortgage loans, and Veterans Administration (VA) fixed rate mortgage loan

8. If you are a low or moderate income home buyer, there are special programs designed to help you. These loans are available through private lenders, as well as local and state housing agencies, like the California Housing Finance Agency (CalHFA). Most lenders specializing in real estate mortgage loans are aware of these types of loan programs.

9. Why might I have to pay mortgage insurance? Mortgage insurance protects the lender from potential loss if you should default on your mortgage loan payment. Generally, conventional loans that require larger down payments do not require mortgage insurance. Mortgage insurance is always required on FHA mortgage loans.

10. Many organizations offer home loan counseling to prospective home buyers. These organizations provide classes for homebuyers to cover the steps to homeownership. They will cover home selection, realtor services, lenders, loan programs, homeownership responsibilities, saving for a down payment, and other important pieces of information. Many first-time home buyer programs require homebuyers to attend this type of class to be eligible for selected programs.


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Top 100 U.S. Cities with the Highest Income Growth Rates

Portfolio.com, a national business news site for small and mid-sized business (SMB) executives, revealed its latest U.S. Uncovered study, ranking U.S. cities with the highest income growth. The study, which looked at the nation's top 100 metropolitan areas, analyzed 25 years of federal income data to calculate how income level growth compares across the nation. El Paso, Texas, ranks in first place, with a 147 percent increase in income levels over the past 20 years.

The study used a 25-part formula to analyze the consistency and strength of per capita income (PCI) growth in each market. The formula compared each area's growth rates against the U.S. averages for 25 different time spans, yielding an overall score for income growth. All 25 spans ended in 2009, ranging in length from 25 years (1984-2009) to a single year (2008-2009).

"It's refreshing to see that the cities with the best opportunities for income growth go beyond the major metros," said J. Jennings Moss, editor of Portfolio.com. "When you consider the current high rate of unemployment in this country, our study suggests that people may want to explore job opportunities or start businesses in smaller cities, like Baton Rouge and Oklahoma City, where income growth is higher and the economy has been relativity stable in comparison to other parts of the U.S."

El Paso, which ranks as the 99th lowest per capita income of $28,638, holds first place in 13 of the 25 time spans, including a 147 percent increase in income levels between 1989 and 2009, and two percent during the recessionary period of 2008 to 2009. Meanwhile, Bridgeport-Stamford, Connecticut, which had the highest PCI in 2009 ($73,720), ranks 33 in the income growth index.

Cities with the Highest Income Growth

El Paso, Texas
Baton Rouge, La.
Baltimore, Md.
Virginia Beach-Norfolk , Va.
New Orleans, La.
Pittsburgh, Pa.
Oklahoma City, Okla.
Little Rock, Ark.
Jackson, Miss. Honolulu, Hawaii

Most cities in the top 10 have around one million or fewer inhabitants, except for Baltimore, Md. (#3) and Pittsburgh, Pa. (#6), which both have populations of more than two million. Jackson, Miss. (#9) is the metro with the lowest population at 540,866 on the top 10 listing. Rounding out the top 10 are Baton Rouge, La. (#2); Virginia Beach-Norfolk, Va. (#4); New Orleans (#5); Oklahoma City, Okla. (#7); Little Rock, Ark. (#8); and Honolulu, Hawaii (#10).

"Most people are interested in knowing what cities have the highest per capita income, but that doesn't always reflect the areas with the most available opportunities," said G. Scott Thomas, a nationally-recognized demographer who participated in the analyses for Portfolio.com. "The highest income growth rankings are designed to give the people an alternative view on what constitutes a flourishing economy and maybe even the chance for a fresh start."

Larger metros were not ranked high on the list. New York City, the area with the nation's highest population, ranks at #35; Los Angeles at #54; and Chicago at #73. The bottom three cities, Raleigh, N.C. at #98, Detroit at #99 and Atlanta at #100, have been hurt badly by declining real estate prices and the erosion of the manufacturing industry, which has contributed to declining income growth rates.