San Joaquin Homes Community Blog

A recent survey of brokers revealed that first-time home buyers today expect more out of an entry-level home than did first-time home buyers 10 years ago.  While most first-time home buyers will list “affordability” as their primary focus, the majority of brokers surveyed found that today’s first-time home buyers desire “move-in ready” homes as opposed to fixer-uppers, which often are more affordable.  Home buyers who wish to find the best deal possible while avoiding fixer-uppers should work closely with their REALTOR® to locate homes in communities that are desirable, and are within their budget.

Norbert G. Huston

www.SanJoaquinHomes.info

· According to several recent surveys, the majority of American homeowners believe that real estate still provides the best opportunity for increasing their wealth and net worth, and that home prices will rebound. However, most housing experts predict that home prices will not reach bottom until at least the second half of 2009.

· Historically, home prices tend to increase on average at an inflation-adjusted rate of 2.5 to 3 percent each year. Karl Case, co-creator of the S&P Case-Shiller home-prices indices, believes the same long-run pattern will continue, despite recent events in the market. Others speculate home prices will increase at a rate roughly 1 percentage point higher than inflation or at an average of 4 percent a year over the next two decades.

· Home prices often are driven by immigration, birth rates, the size and nature of households, and incomes – all of which are difficult to predict. Forecasting where jobs and income growth will be stronger and where immigrants and others will want to live is key. Areas with lower housing costs, modern industries, leisure businesses, well-diversified regional economies, mild climates, and other attractions likely will attract future homeowners and drive demand for housing.

· Coastal areas tend to be more volatile, and often have home prices that rise and fall much faster during booms and busts than do inland areas. Land shortages and building restrictions, which often are the case in crowded coastal areas, make it difficult for builders to respond quickly to sudden rises in housing demand. Inland areas tend to provide more vacant land, enabling builders to meet housing demands more quickly, minimizing sudden movements in prices.

· Some housing experts believe that baby boomers will be much less likely to settle in traditional retirement areas, such as Fort Lauderdale , Fla. , after they retire and may prefer urban settings with cultural activities, friends, and family in close proximity. This could increase the housing demand and drive up home prices in urban neighborhoods. Additionally, the retirement of baby boomers over the next two decades – approximately 78 million boomers – may depress home prices in some areas, as more boomers sell their homes.

To read the full story, please click here:

http://online.wsj.com/article/SB122764977315457619.html

State Elections Make History

Though Presidential and Congressional elections captured the attention of the nation, the states had some exciting activity on the election front as well.

Eleven states had gubernatorial elections; the Democrats had a net gain of one seat in Missouri and will control 29 Governors’ offices to the Republicans 21.

The state legislatures saw the most action as nearly 6,000 of the 7,382 legislative seats were being contested. Several notes of historical significance resulted from these races:

• New Hampshire became the first state in history to give women a majority in a legislative chamber. Women will hold 13 of 24 seats in the Senate.
• The South Carolina Senate will become the only state legislative chamber in the country without any female members. The last all-male legislative body was the Louisiana Senate, which had no women from 1980 until mid-1991.
• Republicans managed two big wins in the South; for the first time in history, Republicans will control both chambers in Tennessee and Oklahoma, after both chambers in Tennessee and the Oklahoma House switched party control. The Tennessee win for the Republicans was a surprise. Both states have Democratic governors.
• Every legislative chamber north of Virginia, except for the Pennsylvania Senate, will be controlled by Democrats.
• The Delaware House flipped to the Democrats after being controlled by the Republicans for 24 years. The Delaware and Indiana House chambers are considered the most volatile in the country – each flipping party control 19 times in 100 years.
• The biggest prize for the Democrats was the New York Senate, which had been under Republican control since 1966. The Democrats now have a monopoly on New York – for the first time since 1935 – controlling the House, Senate and Governor’s office.
• Democrats now account for 55 percent of all state lawmakers, the highest percentage since 1994.

Republicans now have full control of the legislature and governors’ offices in eight states while the Democrats control 17.

Ballot Measure Activity High in States

There were 153 initiatives on the ballot in 36 states – six still undecided, 90 were approved and 57 rejected (61 percent) – which is just slightly below the 67 percent approval rate in 2004 and 2006.

Most notably for the apartment industry were those measures related to money. Massachusetts voters rejected Question 1, which would have repealed the state income tax, surely leading to increased fees and taxes on apartment firms in that state. This was the second time that this question had been placed on the ballot (2002) and voters said no with a margin of 70 percent to 30 percent.

Nationally, 14 of the 15 bond measures on state ballots were approved, authorizing just over $13 billion in borrowing. There were three states that had tax cut measures of some type on the ballot (including the aforementioned in Massachusetts) and all of those failed. The general thought surrounding that fact is that voters either recognized the value of the state services paid for with those dollars and/or realized there will be more significant increases in the future because of the current economic situation.

Two other notable ballot measures were defeated:

• Amendment 47 would have made Colorado a “right to work” state, barring employers from making union membership or paying union fees a condition of employment.
• Arizona Proposition 202 would have reduced employer responsibility for identifying illegal immigrants.

A notable passage occurred in Arkansas. The Arkansas Legislature currently meets every other year in odd-number years. Voters passed a constitutional amendment authorizing lawmakers to meet in even-number years to consider budget matters only in a 30-day session.

Norbert Huston @ www.SanJoaquinHomes.info is a proud member of the National Apartment Association, this article was published on 11-26-08.

Huston Assoc. Real Estate Inc

Election Highlights

The 2008 election, the longest and most expensive presidential campaign season in U.S. history, is now behind us. This year’s election was historic on many levels and is one that will not soon be forgotten.

Voter turnout was the largest since 1920, with voter registration numbers up 7.3 percent since the last presidential election in 2004 more than 130 million votes cast. Democrats will control the White House and both houses of Congress, but the majorities the Democrats hold are not as big as some had predicted. The No. 1 issue on voters’ minds was the economy, coupled with the public’s desire for change and the Democrats’ huge financial and organizational advantage, so it is no surprise that Democrats had a good night. A record $5.3 billion was spent on campaigns across the country.

President
It was a historic night for President-elect Barack Obama; his financial and organizational advantages over Sen. John McCain paid off as he was able to far exceed the 270 electoral votes needed to win the presidency; in fact, he received 364. Obama accomplished victories in the battleground states of Ohio, Florida and Virginia, and was able to increase the percentage of young and African American voters. Obama raised a record $650 million over the past year and half – an unprecedented figure. He carried the popular vote by about 7 percent, at a margin of 53 percent to 46 percent.

U.S. Senate
In the Senate, Democrats did not achieve the magic number of 60 needed to defeat a filibuster, but they did make significant gains. Republicans retained their open seats in Idaho and Nebraska, but lost their open seats in Colorado, New Mexico and Virginia. Couple those victories with upsets in Alaska, Oregon, North Carolina and New Hampshire, and there will be at least seven new Democratic Senators headed to Washington in January. Democrats held the seat in Louisiana as did Republicans in Kentucky and Mississippi. But not all the Senate races were determined on Election Day. Waiting continues for final results from Georgia and Minnesota – both seats currently held by Republicans. A run-off is planned in Georgia on Dec. 2, because of a state mandate, and there is a recount moving forward in Minnesota.

U.S. House of Representatives
As expected, Democrats will maintain control of the House in the 111th Congress and while it was not a good night for Republicans, it could have been much worse. With six races still not called, Democrats have netted a 19 seat gain, which could increase depending on the outcome of the final few races.

It will definitely not be “business as usual” in Washington Jan. 20 when President-elect Obama and the 111th Congress are sworn-in. The multifamily housing industry will need to be more unified than ever before to ensure our elected officials not only hear our voices on the issues important to NAA, but work together with our real estate partners and other like-minded businesses to pass effective and responsible legislation that is important to our organization, our associates and our members.

Norbert Huston @ www.SanJoaquinHomes.info is a proud member of the National Apartment Association (The following article was published on 11-26-08)

• Homeowners who are in default or at-risk of defaulting should contact a reputable credit counseling agency to discuss possible options other than foreclosure. When calling a credit counseling agency, the homeowner should have their loan number, most recent mortgage statement, bank statements and a letter demonstrating financial hardship. To find a credit counselor, visit the U.S. Dept. of Housing and Urban Development’s (HUD) Web site at http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?webListAction=search&searchstate=CA or the nonprofit organization National Foundation for Credit Counseling at http://www.nfcc.org/.

• Homeowners should contact their loan servicer as soon as possible to try to work out potential solutions. According to the Federal Housing Finance Agency (FHFA), some borrowers who do not meet the requirements for an existing mortgage modification program may still be considered for a loan adjustment based on personal circumstances.

• If a mortgage modification is not possible, homeowners may want to consider a short sale -- sell the home for less than the amount of the mortgage. Although a short sale enables a homeowner to avoid foreclosure and often causes less damage to the homeowner’s credit score than a foreclosure, the lender must agree to accept the loss and in some cases the homeowner may have to pay taxes on the difference. Also, many lenders are overwhelmed by the large number of short sales being submitted by homeowners, so it could take longer than usual to receive a short-sale acceptance from the lender.

• If a homeowner cannot qualify for a mortgage modification or a short sale, some lenders will consider a deed in lieu of foreclosure, where the homeowner transfers the title to the lender in exchange for debt forgiveness. Properties that have additional debt, such as home equity lines of credit or additional mortgages, may not qualify for a deed in lieu of foreclosure. Homeowners who have additional debt tied to the property must share this information with their lender for consideration when applying for a short sale.