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Tue 17 Feb 2009

Real Estate's Top 10

THE TOP 10 EVENTS IMPACTING REAL ESTATE IN 2008

As part of the annual Swanepoel TRENDS Report that is published every year during the first week of February, the research team wraps their four month study of the real estate industry by announcing the top 10 Newsmakers, Events and Trendsetters for the year.

The second list to be released is the top 10 events that during 2008 had the largest impact and influence on the real estate brokerage industry. Events are defined as those occurrences that transpired during the previous calendar year (2008) that made headlines and captured the attention of the real estate industry.  The selection of these events was based upon their potential future impact on the industry rather than only their 2008 impact.

The Top 10 Events impacting Real Estate for 2008 are:

1.     The Bailout: September 17^th

Most notably the one single event of the year was the announcement of the "Silver Bullet" designed to save the country from the subprime collapse itself and the failure/buyout of major Wall Street firms and national banks.  Depending upon how effectively the Emergency Economic Stabilization Act's $700 billion is going to be allocated and managed it may prove to be the beginning of the turning point in the current economic recession.

2.     The Presidential Election

In one of the most competitive, contentious, divisive and yet historic political campaigns the country responded with the largest voter turnout in history to elect an African American, Barak Obama as president.  The "I have a dream" has taken a huge step toward fulfillment.  However, the new administration will have little time to reflect on victory as it faces serious economic challenges and a trillion dollar plus debt that will take years to resolve.

3.     In Memory Of: Countrywide, IndyMac, WAMU, Wachovia And Others

Barely one year ago in 2007 these companies were not only household names but were considered financial giants.  In one short year they have become a factoid of history.  Some filed for bankruptcy while others were acquired by the likes of Bank of America, the federal government, J.P. Morgan Chase and Wells Fargo.  2008 reminded us that nothing lasts forever and everything is replaceable.  

4.     Facing Foreclosure Frenzy

As a direct fallout of the subprime collapse, the foreclosure rate in the U.S. hit staggering levels in 2008.  At the opening of the third quarter foreclosures were up 25% over the previous October with a reported one in every 452 of the country's homes in foreclosure.  RealtyTrac reported last October that there was a sharp decline in foreclosure filings but it still estimated that by the end of 2008 there would be more than one million REOs on the books.

5. Home Prices Spiral Downward

The recession devastated many real estate markets across the country with the worst-performing towns and cities in places like central California, Miami and Las Vegas posting declines of 40% in 2008. The stranglehold on financing continued to drive home prices in many other places back to 2000 - 2002 levels, with predictions of continued declines in 2009 as unemployment reaches record highs and the financial meltdown spills over to other industries.

6.     NAR - DOJ Settlement

Finally the long and protracted 2½ year legal battle between NAR and the Department of Justice (DOJ) was put to rest as Judge Kennelly issued his final judgment in November.  In the end, NAR's longstanding Internet Data Exchange (IDX) policy was validated as NAR was deemed to have not admitted any liability or wrongdoing and no payments were made in conjunction with the settlement.  In addition, NAR has been cleared to reinstate an updated version of its Virtual Office Website (VOW) and the MLS has been preserved and strengthened in the process.  Now it's back to business.

7.     Brokers Go Bust

Changing names, merging, consolidating, filing bankruptcy and closing branches was on the order of the day throughout 2008 as literally thousands of real estate brokerages companies went out of business during 2008. This included many independents as well as franchises from just about every major brand including Century 21, EXIT and RE/MAX. Also filling for bankruptcy is national franchise Help-U-Sell and Web 2.0 newcomers such as Igglo. 2009 may see even more brokers closing up shop than 2008.

8.     Keeping It Short



Founded in 2006, Twitter moved into the mainstream this year as the next evolution in the social networking and micro-blogging environment.  By using short text-based posts (affectionately named "tweets"), staying in touch has been given a whole new meaning.  

9.     ActiveRain Explodes Past 100,000 Members

As we discussed in last year's report (Trend #1 - Two Worlds; One Industry) ActiveRain has moved to the head of the social networking line in the real estate industry.  With as many as 35,000 users logged on at the same time, no one else has even come close to reaching that many Realtors^® at one time.  It goes without saying that ActiveRain has proven that social networking has made a home in real estate.

10. NAR Celebrates 100 Years

In May 1908, 120 men gathered in Chicago with the goal to "unite the real estate men of America." Today the National Association of REALTORS® (NAR) is America's largest trade association representing more than 1.2 million members. For 100 years, NAR and its members have established homeownership as a cornerstone of the American Dream and advocated private property rights as one of the fundamental principles that unite us as Americans. 2008 marked NAR's centennial birthday.

For more information go to; http://www.retrends.com/

Posted on 5:27PM EST [ General | Comments: 0 | # ]

Streamlined Loan Modification Program

On December 15, 2008, the Streamlined Loan Modification Program (SLMP) goes into effect. It was announced in November by the Federal Housing Finance Agency (FHFA), the Department of Housing and Urban Development (HUD), the Treasury Department, and the HOPE NOW Alliance representing the vast majority of mortgage lenders and mortgage. The SLMP applies not only to mortgages held or securitized by Fannie Mae and Freddie Mac but also to mortgages held by lenders in portfolio and mortgages in private label securities. The program complements other individual lender initiatives to minimize foreclosures.

The goal of the SLMP is to reduce preventable foreclosures by establishing a streamlined loan modification program. The SLMP sets an industry standard for helping borrowers at risk of losing their homes. The program is aimed at borrowers at least 90 days delinquent who are at the highest risk of losing their homes. The program is limited to borrowers who own and occupy homes as their primary residences and who are not in bankruptcy.

To apply, a borrower should contact the mortgage loan servicer, provide required information about the borrower's income, submit a hardship statement, and certify the borrower did not purposely default to obtain a loan modification. Under the program, an affordable mortgage is a mortgage where the payment does not exceed 38 percent of monthly gross income. The lower payment can be achieved by reducing the interest rate, extending the term of the loan, deferring (but not forgiving) payment of principal, or a combination. Where the servicer cannot make the loan affordable under the SLMP, it may address the problem on a case-by-case basis. As an incentive to participate, servicers will receive $800 for each loan modified under the SLMP.

FHFA Statement Announcing Streamlined Loan Modification Program (including Questions and Answers explaining the program)

Posted on 5:27PM EST [ General | Comments: 0 | # ]

Home maintenance Tips

“Success is the sum of small efforts, repeated day in and day out.”

-- Robert Collier

Home Maintenance Tips -

There are some simple and effective home maintenance tips to consider at this time of year. Bringing your home up to weather efficiency will save both energy and money.

1. In warmer climates, reduce watering times on your irrigation controller and be prepared to turn the irrigation controller “off” during prolonged rainy periods. Reducing your water usage is conservation of a limited resource - and it also reduces your water bill.
   

    

   
   


2. Check all your yard drains and swales. Make sure they are functioning properly and taking runoff away from your house. Water intrusion to the home may be caused by runoff pooling against or under your foundation. Direct runoff water away from your home and into a local storm drain. The same goes for rain gutters - make sure the gutter is clear of debris and that the drain leads the runoff away from your home.
   

    

   
   


3. Check the weather-stripping on all exterior doors. Does it form a tight and unbroken seal? If not, replace the weather stripping. Inefficient weather stripping allows that nice warm air from your heater to escape outside - increasing your energy bill.
   

    

   
   


4. Speaking of your furnace, when was the last time you checked the air return filter? A dirty filter makes your heater work harder and spreads dust throughout your house. A clean filter allows your heater to work more efficiently, saving you money.
   

    

   
   


5. Check your windows. Are the tracks clean? Dirt and dust in window tracks can cause damage to your windows and/or create paths for the warm air inside to leak outside.
   

    

   
   


6. And, while you are checking your windows, look at the caulking around the window frame. Broken or missing caulking can let water in to your home or warm air out. A tube of caulking is relatively inexpensive compared to the damage water can cause or the cost to heat your home.
   

    

   
   


7. If you have a wood burning fireplace, make sure the damper is open before you light the fire. And, always close the glass doors to keep embers from escaping the fireplace box. Burn only manufacturer-approved materials and wood types in your fireplace. Trash, gift-wrappings and compressed logs should never be burned in your fireplace.
   

    

   
   

Tips courtesy of Steve at http://expectmoreinahome.com/blog/home-maintenance-tips/

Posted on 5:26PM EST [ General | Comments: 0 | # ]

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