According to an April 8 article in American Banker, the Federal Housing Administration will likely be backing a lot less residential mortgages in the future, and analysts say that could have a negative impact on housing recovery.
FHA insured almost 40 percent of purchase mortgages in 2010, accounting for about $200 billion in loans, and much of that market has been first-time homebuyers. But the latest government figures indicated FHA backed only $8.3 billion in purchase mortgages in February, just under 47,000 loans. That is a decrease of 36 percent from the same time last year.
American Banker also reported that FHA raised its annual premium by 25 basis points in October 2010 and will raise it another 25 points April 18. Brian Chapelle of Potomac Partners in Washington told American Banker that FHA’s decreased role and the elimination of refinances as interest rates go up will “expose the weakness of the purchase market.”
FHA, along with Fannie Mae and Freddie Mac, guaranteed 2.1 million purchase mortgages in 2009 and 1.9 million in 2010, but those numbers stand to drop substantially in 2011, something Chapelle called “truly troubling.”
With buyers already leery of a still shaky market and banks requiring more stringent financing requirements, the National Association of Home Builders is also concerned about housing recovery. The U.S. Census Bureau reported a drop of 17 percent in new home sales in February, the largest drop since 1968 when the government first began tracking home purchases, Appraiser News Online reported March 30.
Analysts Keefe, Bruyette & Woods told American Banker the average credit score for a home buyer taking out an FHA-insured mortgage in 2008 was 633, but in the fourth quarter of 2010 that score rose to 701.
While NAHB chief economist David Crowe told American Banker he is optimistic about overall economic recovery in the U.S., he’s not so sure about housing. He said economic recovery “usually lifts housing, but the mechanics aren’t working this time.”
Mortgage rates eased again this week, amid signs that the U.S. economic recovery may have slowed or even stalled. The benchmark 30-year fixed-rate mortgage fell 6 basis points this week, to 5.03 percent, according to the Bankrate.com national survey of large lenders. A basis point is one-hundredth of 1 percentage point. The mortgages in this week's survey had an average total of 0.42 discount and origination points. One year ago, the mortgage index was 5.12 percent; four weeks ago, it was 5.02 percent. The benchmark 15-year fixed-rate mortgage fell 6 basis points, to 4.31 percent. The benchmark 5/1 adjustable-rate mortgage fell 8 basis points, to 3.85 percent, and the benchmark 30-year, fixed rate jumbo mortgage fell 7 basis points, to 5.6 percent. The big picture was volatility and uncertainty, according to Steve Majerus, regional vice president at First California Mortgage Co. in Petaluma, Calif.
Mortgage rates eased again this week, amid signs that the U.S. economic recovery may have slowed or even stalled.
The benchmark 30-year fixed-rate mortgage fell 6 basis points this week, to 5.03 percent, according to the Bankrate.com national survey of large lenders. A basis point is one-hundredth of 1 percentage point. The mortgages in this week's survey had an average total of 0.42 discount and origination points. One year ago, the mortgage index was 5.12 percent; four weeks ago, it was 5.02 percent.
The benchmark 15-year fixed-rate mortgage fell 6 basis points, to 4.31 percent. The benchmark 5/1 adjustable-rate mortgage fell 8 basis points, to 3.85 percent, and the benchmark 30-year, fixed rate jumbo mortgage fell 7 basis points, to 5.6 percent.
The big picture was volatility and uncertainty, according to Steve Majerus, regional vice president at First California Mortgage Co. in Petaluma, Calif.
"While we've seen a slight improvement in interest rates over the past week, I have a longer-term view that, from week to week, rates will continue to bounce around," Majerus says. "Events that we don't control will dictate where things go for a while."
The dip in rates came as something of a surprise to some rate-trackers, among them Ray Wallace, a loan officer at Advantage America Mortgage in Moscow, Idaho.
"I thought maybe we would see another rise -- and maybe we still will," he says.
"If the flavor of the day today is Libya, will the flavor of the day tomorrow be Syria?" Majerus says. "Those uncertainties, both known and unknown, could potentially affect things both positively and negatively."
To connect the dots, rising oil prices suggest a slower economic recovery. That prompts investors to favor more conservative investments, particularly bonds over stocks. More demand for bonds means higher prices and, inversely, lower yields. As yields drop, so too, do mortgage interest rates.
The Bureau of Economic Analysis, or BEA, lowered its prior estimate of growth in the nation's gross domestic product, or GDP, in the fourth quarter of 2010 from 3.2 percent to 2.8 percent, suggesting a weaker recovery than had been supposed. Granted, 2.8 percent was a better performance than the 2.6 percent posted in the third quarter of 2010 and wasn't a double dip in the supposedly over-and-done-with recession, but it wasn't a sign of a healthy expansion.
Housing markets, often cited as a crucial component of a robust recovery, also showed signs of weakness. Sales of existing homes rose 2.7 percent from December 2010 to January 2011, an annualized pace of 5.36 million, according to the National Association of Realtors. However, the group also reported that the median existing-home price dropped 3.7 percent from January 2010 to January 2011 and a forward-looking index of pending sales also dipped, by 2.8 percent in January compared with December's figure.
Volatile interest rates currently aren't the cause of fewer home sales, Majerus says. Rather, he says, "tighter loan underwriting guidelines and buyer psychology" are at fault. Those factors are keeping traditional homebuyers on the sidelines while cash-paying investors snap up well-priced homes.
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RISMEDIA, February 17, 2011—As part of ongoing efforts to strengthen the Federal Housing Administration’s (FHA) capital reserves, FHA Commissioner David H. Stevens announced a new premium structure for FHA-insured mortgage loans increasing its annual mortgage insurance premium (MIP) by a quarter of a percentage point (.25) on all 30- and 15-year loans. The upfront MIP will remain unchanged at 1.0%. This premium change was detailed in President Obama’s fiscal year 2012 budget, and will impact new loans insured by FHA on or after April 18, 2011.
“After careful consideration and analysis, we determined it was necessary to increase the annual mortgage insurance premium at this time in order to bolster the FHA’s capital reserves and help private capital return to the housing market,” said Stevens. “This quarter point increase in the annual MIP is a responsible step towards meeting the Congressionally mandated two percent reserve threshold, while allowing FHA to remain the most cost effective mortgage insurance option for borrowers with lower incomes and lower down payments.”
The proposed change was announced last week as part of the Obama Administration’s report to Congress, which outlined the Administration’s plan to reform the nation’s housing finance system. The Administration’s housing finance plan also recommended that Congress allow the present increase in FHA conforming loan limits to expire as scheduled on October 1, 2011.
This premium change enables FHA to increase revenues at a time that is critical to the ongoing stability of its Mutual Mortgage Insurance (MMI) fund, which had capital reserves of approximately $3.6 billion at the end of FY 2010. The change is estimated to contribute nearly $3 billion annually to the Fund, based on current volume projections. It is vital that HUD take action to ensure that FHA will continue to serve its dual mission of providing affordable homeownership options to underserved American families and first-time home buyers while helping to stabilize the housing market during these tough times.
On average, new FHA borrowers will pay approximately $30 more per month. This marginal increase is affordable for almost all home buyers who would qualify for a new loan. Existing and HECM loans insured by FHA are not impacted by the pricing change.
FHA will continue to play an important role in the nation’s mortgage market in 2011. President Obama’s FY 2012 budget projects the FHA will insure $218 billion in mortgage borrowing in 2012. These guarantees will support new home purchases and re-financed mortgages that significantly reduce borrower payments.
For more information, visit www.hud.gov.
RISMEDIA, February 11, 2011—Home sales rebounded in 49 states during the fourth quarter of 2010 with 78 markets—just over half of the available metropolitan areas—experiencing price gains from a year ago, while most of the rest saw price weakness, according to the latest survey by the National Association of REALTORS®.
Total state existing-home sales, including single-family and condo, jumped 15.4% to a seasonally adjusted annual rate of 4.80 million in the fourth quarter from 4.16 million in the third quarter, but were 19.5% below a surge to an unsustainable cyclical peak of 5.97 million in the fourth quarter of 2009, which was driven by the initial deadline for the first-time buyer tax credit.
In the fourth quarter, the median existing single-family home price rose in 78 out of 152 metropolitan statistical areas (MSAs) from the fourth quarter of 2009, including 10 with double-digit increases; three were unchanged and 71 areas had price declines. In the fourth quarter of 2009, a total of 67 MSAs experienced annual price gains.
The national median existing single-family price was $170,600 in the fourth quarter, up 0.2% from $170,300 in the fourth quarter of 2009. The median is where half sold for more and half sold for less. Distressed homes, typically sold at discount of 10-15%, accounted for 34% of fourth quarter sales, little changed from 32% a year earlier.
Lawrence Yun, NAR chief economist, is encouraged by the trend. “Home sales clearly recovered in the latter part of 2010 and are helping to absorb the inventory, including many distressed properties. Even with foreclosures continuing to enter the inventory pipeline, they’ve been selling well and housing supplies have trended down,” he said. “A recovery to normalcy requires steady trimming of the inventories.”
Yun added, “An improving housing market and job growth will go hand in hand.
The housing recovery will mean faster job growth.” He projects about 150,000 to 200,000 jobs will be added to the economy this year from an anticipated 300,000 additional home sales in 2011.
Yun further noted, “Better than expected sales and/or strengthening in home values can have an even bigger job impact as consumer spending would naturally rise from a housing wealth recovery affecting a vast number of American families.”
NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I., said a very favorable affordability environment is a huge factor in the recovery. “Although job growth has been relatively modest and credit is tight, you can’t underestimate the impact of historically high housing affordability conditions,” he said.
“Mortgage interest rates recently hit record lows, median family income has edged up and prices in most areas have been stable following the correction from the housing boom. For people with good credit and long term plans, it’s hard to imagine a better opportunity than what we see today,” Phipps said. “Unfortunately, the flow of credit is unnecessarily tight and is constraining the pace of the housing and job growth recoveries.”
According to Freddie Mac, the national average commitment rate on a 30-year conventional fixed-rate mortgage was a record low 4.41% in the fourth quarter, down from 4.45% in the third quarter; it was 4.92% in the third quarter of 2009.
“The healthier local housing markets are also experiencing favorable local employment conditions,” Yun said. Job growth is a major factor in price appreciation in metro areas such as the Washington, D.C., region, where the median existing single-family home price of $331,100 in the fourth quarter is 8.1% higher than a year ago; the Boston-Cambridge-Quincy area, at $346,300, up 4.2%; and Austin-Round Rock, Texas, at $190,300, up 4.1%.
Smaller metro areas sometimes see larger swings in price measurement depending on the types of properties that are sold in a given period. In such markets, full year price data can provide additional context.
In the condo sector, metro area condominium and cooperative prices—covering changes in 57 metro areas—showed the national median existing-condo price was $164,200 in the fourth quarter, which is 6.4% below the fourth quarter of 2009. Twenty-two metros showed increases in the median condo price from a year ago and 35 areas had declines; only 11 metros saw annual price gains in fourth quarter of 2009.
“Consumers in the hard hit regions of Nevada, Arizona and Florida were able to scoop up condos at absolute bargain basement prices,” Yun said. Median condo/co-op prices in affected metro areas include Las Vegas-Paradise at $60,700, Phoenix-Mesa-Scottsdale with a fourth quarter median of $68,900, and Miami-Fort Lauderdale-Miami Beach at $81,900.
Regionally, the median existing single-family home price in the Northeast increased 2.3% to $240,400 in the fourth quarter from a year earlier.
Existing-home sales in the Northeast rose 15.0% in the fourth quarter to a level of 797,000 but are 22.8% below the surge in the fourth quarter of 2009.
In the Midwest, the median existing single-family home price rose 0.5% to $139,200 in the fourth quarter from the same period in 2009. Existing-home sales in the Midwest jumped 18.3% in the fourth quarter to a pace of 1.02 million but are 25.4% below the cyclical peak one year ago.
In the South, the median existing single-family home price edged up 0.3% to $152,400 in the fourth quarter from the fourth quarter of 2009. Existing-home sales in the region rose 11.4% in the fourth quarter to an annual rate of 1.82 million but remain 17.8% below the surge in the fourth quarter of last year.
The median existing single-family home price in the West declined 2.9% to $214,400 in the fourth quarter from a year ago. Existing-home sales in the West jumped 19.9% in the fourth quarter to a level of 1.17 million but are 14.2% below the cyclical peak in the fourth quarter of 2009.
“A good portion of the sales activity in the West has been driven by investors taking advantage of discounted foreclosures, with high levels of all-cash transactions,” Yun explained.
For more information, visit www.realtor.org.
So what was the economic impact of the Groundhog Day Blizzard? One firm is putting a price tag on all those snow storm-related road closures, canceled flights and missed business meetings.
It's about $251 million a day economic impact in Michigan, according to IHS Global Insight, a Boston-based economics consulting firm.
The Mitten state isn't seeing the biggest loss. That would be New York which had an estimated $700 million impact. The least impacted on the list of 16 states is Iowa, with an estimated loss of $70 million.
“The shocking losses estimated by this study should light a fire under state and local authorities nationwide to get serious about investing in quicker and more effective snow and ice removal,” said Greg Cohen, president of the American Highway Users Alliance, which commissioned the study.
“When roads are left unsafe or impassible, it is more than a public safety issue - it's like money being thrown down the drain,” Cohen added.
Estimated cost of snow storm in " lost per day":
Illinois - $400 million Indiana - $157 millionIowa - $70 million Kentucky - $96 million Maryland - $184 million Massachusetts - $265 million Michigan - $251 million Minnesota - $167 millionMissouri - $162 million New Jersey - $289 million New York - $700 million Ohio - $300 million Pennsylvania - $370 million Utah - $66 millionVirginia - $260 million Wisconsin - $149 million
Source: IHS Global Insight
United Parcel Service, a company that depends on roads and airports for its delivery business isn't ready to weigh in on the report.
“We are still looking at assessing the economic impact to us,” said UPS spokeswoman Susan Rosenberg, of the snow storms this week that forced the company to close several hubs across the Midwest including its facility in Wyoming on Wednesday.
Parts of Illinois, Indiana, Ohio and Michigan remained closed on Thursday, she said.
The company worked around the closures by re-routing delivery planes and processing operations to other locations, said Rosenberg, speaking from the company's Atlanta headquarters.
The study examined the economic impact of snowstorms in 16 U.S. states and two Canadian provinces, showed that a one-day major snowstorm can cost a state $300 to $700 million in both direct and indirect costs.
The economic impact hits hourly workers in the pocket more than any other worker, accounting for almost two-thirds of direct economic losses, the study said.
“The bottom line is that the economic impact of snow-related closures far exceeds the cost of timely deicing with road salt and snow removal,” says Lori Roman, president of The Salt Institute.
“As our public officials focus on economic recovery, we can ill afford preventable road shutdowns that cause such immediate harm to working class families trying to make ends meet.”
Calling it a “failure,” Republican lawmakers have introduced new legislation that would end the Home Affordable Modification Program, the Treasury Department's program to help troubled borrowers avoid foreclosure, according to a Jan. 28 House Oversight and Government Reform Committee news release.
"HAMP is a colossal failure," Rep. Jim Jordan, R-Ohio, said in the news release. "In many cases, it has hurt the very people it promised to help. It's one more example of why government interference in the private sector doesn't work and that's why it should be repealed."
At a Jan. 23 hearing held by Chair Darrell Issa, R-Calif., Neil Barofsky described the shortcomings of the program. The special inspector general for the Troubled Asset Relief Program noted that the Treasury Department had failed to provide meaningful help for homeowners. “There’s no way we’re ever going to get close to the three to four million homeowners” that President Obama said the program would help, Barofsky told lawmakers.
Despite record levels of new foreclosures, there are only 522,000 homes still in the program undergoing permanent modification, according to Oversight’s news release. More than 792,000 trial modifications have been cancelled, and 152,000 trial modifications have yet to be upgraded to permanent status.
"It's unacceptable that Treasury continues this misguided effort that appears more focused on saving face than helping troubled homeowners," Issa, a co-sponsor of the bill, said in the release.
However, Assistant Treasury Secretary Timothy Massad testified at the hearing that ending the program would be the wrong thing to do. "It's still helping a lot of people," Massad said. "Turning it back to the servicers would not be constructive at this time."
Dear Readers,Here are just a couple of the many questions I've received recently on fair market values.Dear Real Estate Adviser,My sister and I own the home where my mother lives. I'd like to sell my share, but we're having a hard time establishing fair market value. Three Realtors have given us a range of values, but my sister's suggested price is nowhere near that range. Should I get a lawyer to help establish a price? -- LindaMy wife and I are divorcing. She had an evaluation done that said our home is worth $114,000, although the town values it at $185,000. Should I get another evaluation to determine the proper value? -- Ronald Dear Linda and Ronald,Driving many of these wide disparities between tax-assessed or agent-estimated values of homes and their actual sales price are a number of factors, including unrealistic thinking, hidden motivations, an unwillingness to accept market realities and borderline greed. Of course, it doesn't help that home values have nose-dived in so many parts of the country in the past four years and have stubbornly failed to emerge, or that foreclosures and short sales must be factored in when determining values in a neighborhood. By all means, Ronald, you should get your own appraisal done, which is what I assume you mean by "evaluation." To avoid conflicts of interest and additional hard feelings, each party in a divorce should get an independent appraisal performed if they own a home together. It's not unusual for one or both spouses in divorces to try to cajole an appraiser to lower or raise a home's valuation to serve their individual purposes. But with a second appraisal in play, the two parties -- or the divorce judge -- will be more inclined to come up with a compromise. In fact, many firms have appraisers who are experienced with "divorce appraisals" that are supportable in court. And no, Linda, you probably won't need an attorney to determine value. But you will need an appraisal from a seasoned professional. You might suggest to your sister that she get her own appraisal done as well, and then you can compare notes -- much as the divorcing couple should do. Certainly, the price opinions of those three Realtors are relevant. While there's a chance that one or more of them is trying to grease the wheels for a fast sale with a too-low price, it's more likely in this instance that they're simply trying to talk your sister down from unrealistically high expectations. As for assessments sent out by a city or county property tax authorities: Rarely do these represent up-to-date, fair market value. Many such assessments are done every other year and are often based on old information and not-so-recent sales. In fact, if there is a too-wide chasm between a taxing authority's assessment and market realities, as may be the case with Ronald's house, it's probably time to challenge or "protest" that valuation. Taxpayers can back their appeal using more recent sales, home-absorption rates in the neighborhood, drops in local median sale prices and the value of average seller concessions -- which all shape the big picture. Cities are typically not in a hurry to readjust property taxes because they are so revenue-strapped. So taxpayers have to take that initiative sometimes. Of course, the only value that really matters in a home sale is the price that is on the check at closing. I wish both of you luck.
Dear Readers,Here are just a couple of the many questions I've received recently on fair market values.
Dear Linda and Ronald,Driving many of these wide disparities between tax-assessed or agent-estimated values of homes and their actual sales price are a number of factors, including unrealistic thinking, hidden motivations, an unwillingness to accept market realities and borderline greed. Of course, it doesn't help that home values have nose-dived in so many parts of the country in the past four years and have stubbornly failed to emerge, or that foreclosures and short sales must be factored in when determining values in a neighborhood.
By all means, Ronald, you should get your own appraisal done, which is what I assume you mean by "evaluation." To avoid conflicts of interest and additional hard feelings, each party in a divorce should get an independent appraisal performed if they own a home together. It's not unusual for one or both spouses in divorces to try to cajole an appraiser to lower or raise a home's valuation to serve their individual purposes. But with a second appraisal in play, the two parties -- or the divorce judge -- will be more inclined to come up with a compromise.
In fact, many firms have appraisers who are experienced with "divorce appraisals" that are supportable in court. And no, Linda, you probably won't need an attorney to determine value. But you will need an appraisal from a seasoned professional. You might suggest to your sister that she get her own appraisal done as well, and then you can compare notes -- much as the divorcing couple should do.
Certainly, the price opinions of those three Realtors are relevant. While there's a chance that one or more of them is trying to grease the wheels for a fast sale with a too-low price, it's more likely in this instance that they're simply trying to talk your sister down from unrealistically high expectations.
As for assessments sent out by a city or county property tax authorities: Rarely do these represent up-to-date, fair market value. Many such assessments are done every other year and are often based on old information and not-so-recent sales. In fact, if there is a too-wide chasm between a taxing authority's assessment and market realities, as may be the case with Ronald's house, it's probably time to challenge or "protest" that valuation. Taxpayers can back their appeal using more recent sales, home-absorption rates in the neighborhood, drops in local median sale prices and the value of average seller concessions -- which all shape the big picture. Cities are typically not in a hurry to readjust property taxes because they are so revenue-strapped. So taxpayers have to take that initiative sometimes.
Of course, the only value that really matters in a home sale is the price that is on the check at closing. I wish both of you luck.
The primary elements of the FHA Minimum Property Requirements (MPR) are: safety, soundness and security, also known as the three Ss. The "head and shoulders" test, another icon of FHA appraisal protocols, is the level of due diligence that must be performed by the appraiser in order to properly assess the three Ss. An integral part of the inspection of the home, the head and shoulders test simply means that the appraiser must inspect the attic and basement/crawl space by entering the access point, at minimum, to the head and shoulders level to enable the appraiser to visually get a sense of the condition of the space and note any deficiencies. The appraiser should have a flashlight or other device to illuminate the space being inspected and should always provide photographs of problem areas to document required repairs and/or inspections. Typically, entry to attics can be achieved via a pull down stairway or scuttle located in the ceiling. Entry to most basements is straight forward while access to crawl spaces can be problematic. If the means of entry are secured or blocked in such a way as to prevent entry, the appraiser must contact the lender and re-schedule an inspection when such entry ports are unblocked and accessible. The appraiser is not required to move items such as furniture, equipment or debris that may block entry and it is the responsibility of the lender to ensure that such access ports are freely accessible. If access is not feasible and/or places the appraiser in physical danger, the appraisal must be conditioned upon a satisfactory inspection by a qualified third party. The appraiser may want to provide photographic documentation to the lender to support a claim of inaccessibility. If the design of the home does not permit inspection of an area (such as the attic in cases of flat roofs), the appraiser must comment on this within the report.
Attics should always be ventilated and any evidence of water or fire damage, structural problems, exposed and frayed wiring or other hazards in either the attic or basement/crawl space must be noted and the appraisal must be conditioned on their repair/correction. Standing water in a basement/crawl space or bulging foundation walls are clear signs of deficiencies that require correction. Water collecting on the interior side of roof sheathing is a clear sign of leakage or system failure and the condition must be corrected.
A corollary to the "head and shoulders? test is functionality testing of a home’s mechanical, electrical and plumbing systems, which cannot be accomplished without the utilities being on. If the utilities are not operational at the time of inspection, the appraiser must notify the lender and reschedule an inspection at a time that the utilities are operational.
The "head and shoulders" test and functionality testing do not assume any special expertise or skills on the appraiser’s part, nor are they technically exhaustive. FHA appraisers are to report on what is readily observable and must have access to all improvements. Being alert and conscientious during the course of the property inspection will increase the probability that deficiencies or other adverse conditions that can pose a threat to the health and safety of the occupants or adversely impact the value and marketability of the property are noted and accounted for in the appraisal.
By Steve Kerch Print Article
RISMEDIA, January 14, 2011—(MCT)—Housing will rebound moderately in 2011, economists at the International Building Show here are predicting, and should gain even more steam in 2012. But the recovery in home building and home sales will vary widely from one part of the country to another, with the states that had the most success during the boom times of the past decade being the last to come back from their historic bust, according to an analysis from the Portland Cement Association, a national trade group.
“The headwinds are still facing us in housing. They are less than they were, but they are still in place,” said Edward Sullivan, chief economist for the PCA, who examined data on mortgage delinquencies, unemployment rates and home-price declines to create a state-by-state recovery prediction.
The housing markets that still face the hardest going, led by Nevada, account for more than 50% of the U.S. housing market, Sullivan pointed out, while those that will recover the fastest make up only 20%. That means the better times in those states won’t do much to lift overall national housing numbers.
Here are the five states where housing is predicted to recover the quickest:
1. North Dakota. North Dakota has the lowest mortgage delinquency rate of any state, just 0.9%. It also has shown the best home price performance of any state, with values up 7.2% from the peak of everyone else’s boom in 2005 to what was a trough for everybody else in 2010.Only Texas, Vermont and South Dakota also reported gains over that time. The category the state did not lead was unemployment, which at 7.5% was just about double that of its southern neighbor South Dakota, which at 3.7% boasted the lowest rate.
2. South Dakota. In addition to its low unemployment number, South Dakota also sports the second-lowest mortgage delinquency rate at 1.5%. And the state also managed to steer clear of the home price cliff, with prices having risen 0.5% from 2005 to 2010.
3. Iowa. The Hawkeye State managed to keep its home prices nearly level over the worst five years in history for everyone else, with prices falling just 0.4%. Mortgage delinquencies are only 2.2% of outstanding loans in the state, and the unemployment rate of 6.8% is still well below the national average.
4. Nebraska. At 4.4%, Cornhuskers enjoy the second-lowest unemployment rate in the nation. Just 2.0% of outstanding mortgages are delinquent, and home prices fell only 3.5% from peak to trough, while the average for the country was a 20% drop.
5. Oklahoma. Home prices in the Sooner State fell just 2.3% from peak to trough and mortgage delinquencies are 2.9%. Unemployment is 6.9%.
If you see a pattern in those five states, you’re right.
“The central portion of the country generally will recover first,” Sullivan said. Add Kansas, Texas, Louisiana and Arkansas to that bunch.
Other states that fall into the early-recovery category include Vermont, Hawaii, Montana, Wyoming, New Mexico, Colorado and New Hampshire.
On the opposite end of the spectrum, here are the five states where the housing recovery is expected to be a lot longer in the making:
1. Nevada. The poster child for the housing boom was Las Vegas, but now it’s lights out on Glitter Gulch. The state has the highest mortgage delinquency rate in the country at 8.3%, the highest unemployment rate at 14.4% and has suffered the biggest peak-trough home price declines of any area, a 56.4% tumble.
2. Michigan. Not a state that enjoyed the boom, but one really feeling the bust. It has the second-highest unemployment rate in the nation at 13.1% and mortgage delinquencies hit 5.1% of outstanding loans. Home prices have also fallen hard, 31.7% from the peak.
3. California. The second-highest mortgage delinquency rate in the country at 6.0%, the third-worst unemployment rate at 12.4% and home price declines of 40.8% put the Golden State on a long path to health.
4. Florida. Tying California with a 6.0% mortgage delinquency rate but beating its cross-country rival with a home-price decline of 46.9%. An unemployment rate of 11.7% doesn’t help.
5. Rhode Island. Unemployment trips up Rhode Island, which ties for the fourth-highest rate in the country at 11.7%. Home prices declines were 25.6%, and 4.9% of mortgages are delinquent.
(c) 2011, MarketWatch.com Inc.
Distributed by McClatchy-Tribune Information Services.
By Josh Schoenly Print Article
RISMEDIA, January 11, 2011—Did you know that over half the U.S. and Canadian populations are on Facebook? Did you further know that Facebook has passed Google as the #1 most visited website? (there’s still some debate on this one, but either way it’s really close).
Despite these facts, most real estate professionals have no idea how to actually turn Facebook into a lead generation machine for their business. And the vast majority of those that do figure it out, end up wasting huge blocks of time each and every day.
So let me lay out a simple plan for generating leads on Facebook with effectiveness and efficiency.
Step 1: If you haven’t already done so, create a business page for your real estate business. We recommend that you use a strong keyword based title for your business page. (Example: Harrisburg PA Free Home Search vs. Bob’s Real Estate Brokerage).
Step 2: Be sure to optimize your business page by following the steps that Facebook outlines for you, including uploading an image, providing company information etc.
Step 3: You’ll want to set up a welcome tab that each new visitor will see when they land on your page. Facebook has code they call FBML which is pretty simple to use. If this intimidates you, we’ll show you a short cut at the end of this article.
Step 4: You need to add some content to your page. The content will in most cases go to your wall. To get started posting content to your page, post videos that you’ve done, or blog posts that you’ve written, links to listings etc. Then ideally to put it on partial autopilot you’ll want to set up a feed that posts new content to your wall on a regular basis. What we recommend is using a Realbird feed to post new local property listings—but there are lots of different options.
Step 5: This is probably the most important step—getting people to come and “like” your page. There are three main ways to do this. First, you can and should suggest your page to all your Facebook friends. Second, you can actually import your database of leads, past clients, etc. and they’ll be invited to check out and “like” your page. Third, you can use Facebook ads to drive demographically and geographically targeted visitors to your page.
Step 6: Every day, or at least every few days, send a personal Facebook message to new “fans” of your page. You can easily do this in just minutes a day or you can have your assistant do it as part of their daily routine as well.
So that’s it, a pretty simple process really. Now if you’d like a short cut, we’ve developed a complete Facebook Real Estate System and you can check it out at http://facebookrealestatesystem.com.
This article is provided by Josh Schoenly with Retechulous.com, LLC, your place for real estate marketing and lead generation. Schoenly can be reached at josh@retechulous.com or 888-809-7520.
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