Look to baseball, not polls, for hope

courtesy of  Ted Benning, Benning Construction Co.

A Gallup Poll last week found that more Americans believe unemployment is the most important issue facing our country, than at any time in the last 28 years. The unemployment rate continues to hover around 9 percent, with many having stopped their search for jobs. This is not good news for the recovery. It shows that the economy is running a flat track. It will lead to lack of confidence and more fear and malaise among decision makers. Are we at the new normal? If so we have plenty of data from other countries that show that these types of unemployment numbers will lead to other troubles. Trouble will then run to more trouble. What a pessimistic view!

On the other hand, pitchers and catchers are reporting for another season of baseball. Baseball is the American pastime that shows us that no matter what, we can be successful. Baseball teaches the overcoming of odds. A batter is one person facing nine. The batter has only three ways to get on base – get hit by a pitch, walk or making a base hit. The batter faces a pitcher whose sole job is to trick the batter into making an out. What terrible odds. In spite of these odds most batters reach base one fourth of the time. A one-against-nine is turned into a chance to run the bases, aggravate a pitcher and one’s opponents and with a good strategy, teamwork, speed, cunning and guile score a run to help one’s team win a game. There are periods of tedious play accentuated by period of great activity and success. It is a game that is analogous to our life.

When unemployed or under employed we spend a great deal of time working for a job – analogous to a batters approach to getting a hit in baseball. We work like hell to get a job (getting on base). Once we begin work (running the bases), we have an opportunity to participate in the success of team (scoring a run), applying the same values that baseball teaches. It is no wonder that Americans are successful. We know how to overcome the odds!

So to you Mr. Gallup, thank you for your statistics. I will however, place my confidence in the way of life that I learned on the baseball field.

Read more: Look to baseball, not polls, for hope | Atlanta Business Chronicle

 

Foreclosure Activity Drops Throughout The Most Foreclosure-Heavy States

courtesy of Richard Staley

 

Foreclosure activity is slowing. According to foreclosure-tracker RealtyTrac, the number of foreclosure filings dropped 17 percent on an annual basis last month. Monthly filings ticked higher 1 percent after a combined 23 percent decrease through November and December 2010.

The phrase “foreclosure filing” is a catch-all term, comprising default notices, scheduled auctions, and bank repossessions.

January marked the third straight month of sub-300,000 filings after 20 straight months above it.

As compared to January 2010, six of the nation’s 10 most foreclosure-heavy states posted an annual foreclosure filing reduction. The remaining four showed modest worsening.

It’s noteworthy that states like California and Florida posted declines of 7 percent and 54 percent, respectively, and that Nevada posted a relatively-low 3 percent gain. These three states have been at the leading edge of foreclosure activity since 2007. Their subsequent recoveries, therefore, may foreshadow a better housing market ahead.

Or, this may be lasting effects from the “robo-signer” controversy.

Regardless, home buyers in Georgia continue to clamor for distressed homes.

According to the National Association of REALTORS®, properties in various stages of the foreclosure and short sale process are selling at discounts in the range of 10-15 percent so it’s no wonder they now account for 36 percent of all home resales. Buying a foreclosure can be a great “deal”.  They can be more trouble and cost than they’re worth.

Therefore, If you’re in the market for a foreclosed home , be sure to speak with a licensed real estate agent. The process of buying a distressed home is different from buying a non-distressed home. An experienced professional can help make sure you negotiate your best possible price.

Home Supplies Plummet, Putting Pressure On Prices To Rise

courtesy of Richard Staley

 

Existing Home Sales surged 12 percent last month, closing 2010′s housing market with strength. An “existing home” is a home that cannot be categorized as new construction; a resale.

According to the National Association of REALTORS®, seasonally-adjusted, annualized Existing Home Sales figures climbed by more than a half-million units in December as compared to November. It’s the 3rd straight month of home resale improvement nationwide.

Sales volume is now as high as it’s been since May 2010 — just after the federal home buyer tax credit’s expiration.

In addition, the number of months needed to sell the complete, current home inventory at the current pace of sales fell by 1.4 months, tying December for the biggest one-month home supply improvement in 2 years.

It’s yet another signal that the housing market is in recovery. Not that this data should surprise anyone. November’s Pending Home Sales report told us to expect it two weeks ago.

Broken down by buyer-type, home sales split as follows:

• First-time home buyers : 33% of all sales
• Repeat buyers : 47% of all sales
• Real estate investors : 20% of all sales

Cash buyers represented 29 percent of all transaction, down 2 ticks from November. This may suggest that mortgage guidelines are loosening — another sign of economic improvement.

So, take note, Atlanta home buyers. This spring, along with mortgage rates, home values should rise, too. Expect less “bang for your buck” as the housing recovery takes hold across the nation.

The best deals of the year may be the ones made this month.

Foreclosure Activity Falls For The Second Straight Month, Drops To 30-Month Low

According to foreclosure-tracking firm RealtyTrac, the number of foreclosure filings nationwide dropped for the second straight month in December. After falling 21 percent in November, filings were down by an additional 2 percent in December.

“Foreclosure filing” is a catch-all term, comprising default notices, scheduled auctions, and bank repossessions.

Like most months, a small number of states dominated December’s national foreclosure figures. 6 states accounted for more than 50 percent of all bank repossessions.

1. California : 17% of all repossessions
2. Florida : 11% of all repossessions
3. Arizona : 6% of all repossessions
4. Michigan : 6% of all repossessions
5. Texas : 6% of all repossessions
6. Nevada : 4% of all repossessions

December’s foreclosure filings fell to its lowest levels since June 2008, but we can’t read into the report too much just yet. Foreclosure volume continue to be dampened by lawsuits and moratoriums related to controversy surrounding the so-called robo-signers.

Foreclosure activity may have lessened in December anyway, but we can’t know for certain.

Distressed properties are in high demand among home buyers, accounting for one-third of all home sales; typically sold at a steep, 15 percent discount as compared to non-distressed properties.

Buying foreclosures can be a terrific “deal”.

That said, buying a foreclosed home is different from buying a non-foreclosed home. Specifically, because you’re buying from a bank and not a person, contracts may vary from what’s “customary” and negotiations may be drawn-out.

Why Builder Confidence Surveys Matter To Buyers Of New Homes

courtesy of Richard Staley

Home builder confidence is holding firm this month, according to the National Association of Home Builders.

The group’s monthly Housing Market Index survey posted 16 for December. That’s the same value as from November. It’s also equal to this 2010′s average HMI reading.

HMI is scored on a scale of 1-100, and is a composite of 3 separate home builder surveys measuring single-family sales; projected single-family sales over the next six months; and prospective buyer foot traffic.

The results of the 3 surveys were as follows:

• Single-Family Sales : 16 (unchanged from November)    
• Projected Single-Family Sales : 25 (unchanged from November)
• Prospective Buyer Foot Traffic : 11 (from 12 in November)

Values of 50 or better indicate favorable conditions for home builders. Values below 50 indicate unfavorable conditions.

In other words, although improving, conditions for home builders remain less from excellent. Home buyers in Atlanta can use this to their advantage. When builders feel pressure from the market, they’re more likely to offer discounts.

On the other hand, job growth is returning, the economy is expanding, and mortgage rates are rising. These 3 factors are thought to boost housing markets. So, despite an unfavorable HMI reading, home builders might still less willing to “make a deal”; holding out for a better 2011.

November’s strong Housing Starts data supports that line of thinking.

If you’re buying a newly-built home , or expect to buy sometime in 2011, keep an eye on home builder sentiment surveys. The better the builders feel, the more you may be asked to pay to buy your next home.

Eco-Friendly Custom Building and Remodeling

Many home buyers and home owners are looking for eco-friendly Atlanta real estate, whether they buy new homes or renovate their current ones. If you want to have a beautiful home that is more energy efficient and uses renewable resources, turn to a Custom Builder Atlanta member.

Custom Builder Atlanta members are well-versed in green remodeling and building and can show you all of your available options, whether your home is being constructed from the ground up, you are remodeling a few rooms or completely renovating your whole house.

Are you seeking an environmental certification for your home? Custom Builders Atlanta members can help you with that as well. Homes built to the rigid standards of Earth Craft and Energy Star allow to home owner to enjoy the benefits energy savings while you live in the home, but also help you sell your home quicker if you decide to relocate or move-up. Homes with environmental certifications sell quicker and for more money than a similar home of standard construction.

Get started on your new energy efficient home or remodel today! Visit the Custom Builders Atlanta website for a list of Atlanta-area builders and remodelers.

Fannie Mae Guidelines Change Monday. Apply Today To Lock In To “Old” Rules.

courtesy of Richard Staley

Fannie Mae rolls out new mortgage guidelines Monday. Therefore, if you’re in the process of applying for a conforming home loan, consider giving your complete application by the close of business Friday.

Energy Efficient Tax Credits Help Homeowners Save Money

If you’re looking to take advantage of the tax credits available for energy efficient home improvements, now is the time to act. To qualify for a 30 percent tax credit, up to $1,500, homeowners must complete the renovations by Dec. 31, 2010.

According to Greater Atlanta HBA president, Les Stumpff, energy efficient home improvements that qualify for the tax credit include metal and shingle roofs, energy efficient improvements to heating and air conditioning, biomass fuel heating components and other similar items.

In addition to the energy efficient tax credits, there are also credits for new Atlanta real estate and existing homes for renewal energy improvements such as the addition of small wind energy systems, solar water heating and solar electric. Again, the tax credit is 30 percent of the cost of the improvement with no maximum dollar amount. However, unlike the tax credit for energy efficient home improvements that expires Dec. 31, this tax credit does not expire until 2016.

For more information, visit the NAHB website.



Just 1 to a pot? Combination planting comes inside

courtesy of DEAN FOSDICK  For The Associated Press

Container gardening is coming in from the cold, replacing the one-plant-to-a-pot displays that have been indoor decorating staples since the Victorian era.

Enlarge photo

AP Combination planting can create arrangements that will thrive through the winter in sunny interiors as much as they would outside in summer on patios or balconies.

Enlarge photo

AP A decorative pot containing violas (left), spinach (center) and yellow mums from Pamela Crawford’s book “Easy Container Combos: Vegetables & Flowers.”

Related

• Photos: Create a container garden

Combination planting — blending different plants in the same containers — is as practical as it is attractive. Arrangements can be created that will thrive through the winter in sunny interiors as much as they would outside in summer on patios or balconies.

“Grouping plants together has several advantages, including the ability to create more impact and to water less often,” said Kathy LaLiberte, director of gardening at Gardener’s Supply Co. in Burlington, Vt. Those are the same reasons people groups plants in containers outdoors, she said.

Choose your container combinations carefully, however. It wouldn’t do to mix plants having different light, temperature and water requirements, such as African violets paired with leaf lettuce, or succulents growing alongside berries.

“Think as much about the horticultural side of the container garden as you would about its looks,” said LaLiberte, who recommends a “thrillers, fillers and spillers” style: “You can create a cool pot with one showcase plant, another that tucks under or fills in, and something else that’s trailing,” she said. “That makes an imaginative arrangement combining different heights, colors and textures.”

Light often determines which plant varieties can be used for indoor gardening.

“Unless you have artificial light or access to sunlight, you may want to veer toward getting plants that don’t crave it,” LaLiberte said. “Some of the most beautiful displays I’ve seen in recent years haven’t had any blooms in them at all, just foliage. There was all this great leaf play.”

That translates into grouping different kinds of exotics — caladium, cannas, coleus or ferns, among others. Each is considered a foliage plant, yet each produces a different look: variegated leaves in some cases, or brilliant colors.

Edibles also are great indoor landscaping options, delivering freshness along with convenience and fast maturity. Choices vary from micro-greens to dwarf bananas.

“You can take salad fixings from seed to table in less than a month,” said Ellen Ecker Ogden, an ornamental kitchen garden designer from Manchester Village, Vt. “Cut and water and they just grow back again.”

Herbs and annual flowers play well together in containers, and their blooms do double duty.

“They’ll give you a little taste of summer along with some lovely colors,” Ogden said. “And they’re easy to grow from seed. Another bonus is that they’re low hugging plants. Push some seeds (impatiens, pansies or viola, for instance) into the base of foliage plants to provide more interest.”

Ogden recommends starting from scratch, using seed rather than over-wintering mature container plants.

“Some plants are sensitive and don’t like being moved. They suffer transplant shock if brought in,” Ogden said. “Better that you find something fast-growing so it can be sown directly indoors.”

Effective indoor landscaping also includes selecting the right containers, she said.

“There are so many different kinds of pots, with different sizes, different colors and materials. Try some architectural pots. They’re big, wonderful things that add greatly to indoor displays.”

What’s Ahead For Mortgage Rates This Week : November 29, 2010

courtesy of Richard Staley

In a holiday-shortened week on Wall Street, mortgage markets improved on 3 of 4 days, but still posted its fourth consecutive losing week.

Unfortunately for rate shoppers and home buyers in Georgia , last week’s 3 days of gains were mild improvements; the one day of deterioration was among the Top 10 worst days for mortgage bonds this year.

Mortgage rates in Atlanta are at their highest levels since mid-July. The Refi Boom is unwinding quickly.

Last week underscores the importance of the global community to the future of the U.S. mortgage market. Two of the main reasons why mortgage rates increased were non-domestic.

1. Concerns for a full-blown North Korea/South Korea conflict lessened quickly
2. The likelihood of a speedy, $85 billion bailout Ireland increased

The two events stemmed the typical safe-haven buying patterns that accompany geo-political and economic uncertainty, and drive down mortgage rates.

This week, mortgage rates may rise again.

First, Ireland’s bailout package was signed Sunday morning and that relieves some pressure on the European Union.  Second, this week’s economic releases should show that the U.S. economy is still expanding, and that U.S. consumers are still spending — both are tied to higher rates.

A sampling of the week’s releases include:

• Tuesday : Case-Shiller Index; Consumer Confidence surveys
• Thursday : Initial and Continuing Jobless Claims; Pending Home Sales
• Friday : Non-Farm Payrolls; Unemployment Rate

If you haven’t locked a mortgage rate and are waiting for “the bottom”, remember that the mortgage market waits for no one. Rates are much higher since the start of November and look ready to rise even higher.  Call your loan officer and get your application in process this week.

The longer you wait, the higher that rates could go.