The Fine Living Group of Nashville

Nashville foreclosure rate dipped slightly in May

2010-07-08T11:27:00.000-07:00

Foreclosure rates in the Nashville area were up in May when compared to a year ago, but dipped slightly from April, according to data released today by CoreLogic.

The foreclosure rate in the Nashville-Davidson-Murfreesboro-Franklin area stood at 1.47 percent in May, an increase over the 1 percent rate seen in May 2009.

The local foreclosure rate is well below the national average of 3.15 percent. It also represents a dip from April, when the local foreclosure rate was 1.49 percent.

The amount of delinquent mortgages in the area — those 90 days late or more — also dropped in May. While 6.2 percent of area mortgages were delinquent in April, that number dropped to 5.7 percent in May. However, that is well over the 4.26 percent seen a year ago.

Read more: Nashville foreclosure rate dipped slightly in May - Nashville Business Journal

Restaurant Wednesday

2010-07-07T10:40:00.000-07:00

Germantown Cafe

Just blocks from downtown, TPAC and LP Field, Germantown Cafe offers fresh, comfortably creative, reasonably priced food, along with an amazing view of the Nashville skyline. The Cafe is the perfect choice for pre-theatre dinners, casual nights out on the town, power lunches or lazy Sunday brunches.

Location:
1200 5th Avenue North
Nashville

615.242.3226
germantowncafe.com

Pending Home Sales Drop as Expected

2010-07-06T11:05:00.000-07:00

Following a surge driven by the home buyer tax credit, pending home sales fell with the expiration of the deadline for qualified buyers to sign a purchase contract, according to the National Association of Realtors.

The Pending Home Sales Index, a forward-looking indicator, dropped 30% to 77.6 based on contracts signed in May 2010 from a reading of 110.9 in April, and is 15.9% below May 2009 when it was 92.3. The falloff comes on the heels of three strong monthly gains as home buyers rushed to take advantage of the tax credit.

The data reflects contracts and not closings, which normally occur with a lag time of one or two months. However, many closings have been delayed recently from a rush of buyers into the system and slow processing of short sales, in addition to the heavy volume and a more thorough loan underwriting process. As many as 180,000 buyers who signed contracts by April 30 may have missed the June 30 closing deadline for the tax credit. However, Congress passed legislation recently to extend the deadline for delayed contracts and President Obama is expected to sign.

NAR chief economist Lawrence Yun said, “Consumers are rational and they rushed to meet the tax credit eligibility deadline in April. The sharp decline in contract signings in May is a natural result with similar low levels of sales activity anticipated in June,” he said. “Surprisingly, though, some local markets such as Portland, Maine and Jacksonville, Fla., actually experienced an increase in contract signings from a year ago without the tax credit. Existing-home sales that close in June will remain elevated, but we’ll then see a notable decline for July and August.”

Congress also reauthorized the National Flood Insurance Program. Many lenders were hesitant to approve mortgages on homes needing flood insurance without congressional action and numerous sales have been on hold. The action is retroactive to a temporary authorization that expired May 31, and also is expected to be signed by the president.

Yun noted the tax credit has broadly stabilized home prices. “Without the tax credit, there will be more aggressive price negotiations between buyers and sellers. The key test on whether the housing market can stand on its own without stimulus medicine will depend critically on private sector job creation in the second half of the year. We’ll also keep a close eye on market conditions on the Gulf Coast.”

Through May of this year, 495,000 net private sector jobs have been created; NAR’s forecast for employment growth is about 1 million additional net new jobs over the balance of the year and another 2 million in 2011.

“If jobs come back as expected, the pace of home sales should pick up later this year and reach a sustainable level of activity given very favorable affordability conditions,” Yun said.

“In most areas of the country, there will be no sharp snap back in home prices in the upcoming years, although some local markets have experienced double-digit gains this year,” Yun said. NAR forecasts the national median home price to rise only 4% cumulatively over the next two years.

“One factor that could lead to price acceleration in upcoming years for some markets is if the very low levels of new home construction were to persist for another year or two,” he added.

The PHSI in the Northeast fell 31.6% to 67.0 in May and is 14.8% lower than May 2009. In the Midwest the index dropped 32.1% to 70.8 and is 20.2% below a year ago. Pending home sales in the South fell 33.3% to an index of 82.5, and are 14.4% lower than May 2009. In the West the index declined 20.9% to 85.3 and is 15.1% below a year ago.

East Nashville Thirth of July Block Party!

2010-07-02T07:03:00.000-07:00

Yes, it's still on. Yes, it's still a benefit. Yes, it's gonna be
bigger than ever. And yes, it's still on the 3rd. And this year it’s
on Saturday! Hello three-day weekend.

There are a few changes this year. We've done away with the potluck,
but don’t fear. We’ve added two delicious vendors to the mix. We'll
have all your favorites including burgers, dogs, BBQ and jambalaya to
tempt your taste buds. And because it's gonna be hot, the folks at The
Jolly Rogue will be selling their awesome New Orleans Sneaux Balls to
keep you cool. Bring cash if you want to eat--and trust me, you WILL
want to eat.

This is a people-friendly event--NOT a pet-friendly event. Please
leave your animals at home. It'll be too hot for them anyway.

For entertainment, we've got another stellar lineup for you this year:

--East Nashville favorites Thee Phantom 5ive will be kicking it off
early with great surf rock. Hopefully they'll sport their red
jumpsuits in honor of the holiday.

--After that, we have Melissa Mathes gracing the stage. She's opened
for Pat Benatar, Cheap Trick, and Shelby Lynne, and can regularly be
seen onstage with Guilty Pleasures. Her debut CD is coming out soon.

--Next up is The Minor Keys. They'll rock your face off.

--Then we'll be entertained by Heypenny, winners of last year's "Road
to Bonnaroo" contest. I'm pretty sure you all know them, but we're
excited to have them at the Thirth for the first time.

--And for the evening’s headliner, we have Elmo Buzz and the Eastside
Bulldogs, including a few folks you just might recognize.

$10 at the door--price includes beer

All Proceeds Benefit Flood Relief

The Thirth is on N. 12th Street, between Ordway and Calvin.

Velocity developers give deed to Compass Bank

2010-07-01T10:21:00.000-07:00

Velocity has become the first Gulch condominium to revert to bank control.

In what is sometimes called a “friendly foreclosure,” Velocity in the Gulch Inc., a joint partnership between Bristol Development Group and MarketStreet Enterprises, filed a quitclaim deed June 25 that conveyed any rights or interests in Velocity’s 223 unsold condo units and ground-floor retail space back to the project’s lender.

Like last year’s auction at the neighboring Terrazzo condos, it’s another painful step, but one that could get the once heralded — but now struggling — Gulch condo market closer to a point where prices match demand, industry watchers say.

Velocity in the Gulch had taken out a $45.6 million construction loan in 2007 from Compass Bank, which apparently formed the entity Velocity Residential LLC in late May to become the building’s new owner. According to property records, Velocity Residential shares a Houston, Texas, address and suite number with a Compass Bank office.

Such quitclaim deeds, which must be voluntarily pursued by a borrower, are sometimes used to avoid a bank-directed foreclosure, said Larry Papel, a real estate attorney with Baker Donelson Bearman Caldwell & Berkowitz PC.

In these cases, generally borrowers have “decided that they won’t ever get their money out of this, and it’s costing money to continue the project every month,” Papel said.

John Cheadle, an attorney with Nashville firm Cheadle and Cheadle who has often been named as a receiver when other area condos have fallen into bank possession, said a deed in lieu of foreclosure offers benefits to both a bank and borrower. The bank is spared the time and expenses of pursuing a formal foreclosure, as does the borrower, who also avoids having a foreclosure on its record.

“... (I)t looks like to most of the world that it was simply a conveyance or transfer,” Cheadle said, adding that friendly foreclosures can still hamper a borrower’s credit record.

A Compass Bank spokesperson did not return calls for comment.

Bristol Development Group will continue to manage the building and sell units on behalf of Compass.

This, Papel said, suggests that Bristol and Compass maintain a good relationship.

While Bristol will likely be paid for its advice to Compass, the bank will be the ultimate decision maker as it relates to the condo units.

A similar scenario has played out at Terrazzo, where developer Crosland Tennessee continues to sell units and provide input to Canyon Johnson Urban Funds, the building’s equity partner that now calls the shots.

Asked if MarketStreet will continue management of the building’s retail component, Joe Barker, the company’s chairman said, “We’ll be involved in the whole project. I think that’s the best way to describe it.” He declined to elaborate.

Principals with MarketStreet and Bristol declined to offer specifics of why changes were made. Barker said the new arrangement represented “a little bit different structure” for the project.

“We’ve reworked the deal, and we’ve recapitalized it,” Barker said.

Charles Carlisle, CEO and a principal of Bristol, also declined to comment on specifics of the arrangement.

“We restructured the finances, much like we did with Icon before this,” Carlisle said, referring to the construction loan with Fifth Third Bank that Bristol and MarketStreet amended late last year for the Icon, another Gulch condo.

Sales of Velocity units started slowly, a fact recognized by its developers.

Construction started on the building in October 2007, but condo units were first made available for presales in May 2007. On the first day of availability, developers announced 85 sales.

To date, however, only 40 of the building’s 263 units have sold, according to Davidson County property records.

Carlisle expected a greater “sales pace in the very near future,” but he stopped short of saying a change in pricing at Velocity is forthcoming.

The first batch of units to close inside Velocity sold for more than $300 per square foot; units sold last month for between $226 and $256 per square foot, according to county property records.

“We’re always looking at our pricing to adjust to the current market,” Carlisle said.

Cheadle said banks aren’t in the business of managing real estate, so Compass will now face the same questions as if Velocity had entered receivership: whether to sell the remaining units in one swoop to an interested buyer, or, as appears to be the case for now, allow Bristol to sell units individually. Historically, a bank will be more willing to drop prices, Cheadle said.

Angela Wright, a broker and principal of Urban Abode, said the new ownership structure shouldn’t raise a red flag for potential buyers, though she said she would make clients aware of the change. Wright said she didn’t expect a “fire sale” in wake of the change.

Grant Hammond, a real estate broker who specializes in condos, said the change may help the building find traction.

“In this particular case, it may be a positive for Compass Bank to own the Velocity condos,” he wrote in an e-mail. “It frees up developer capital to (lease) the ... retail space and allows condo prices to drop to a point where they make sense again.”

Restaurant Wednesday

2010-06-30T08:43:00.000-07:00

McCabe Pub

McCabe has proudly been serving Nashville in the Sylvan Park neighborhood for 26 years. Open for lunch and dinner, McCabe caters to a variety of tastes with a well-rounded menu offering anything from a grilled cheese to a fresh salmon or pan-fried trout. Daily specials are also available. Almost everything is made in-house. Patio dining available.

location:
4410 Murphy Rd.
Nashville

615.269.9406
mccabepub.com

Lack of Credit Extension Would Dash Hopes of Home Buyers in All 50 States

2010-06-29T10:40:00.000-07:00

Up to 180,000 home buyers will lose their tax credit through no fault of their own if Congress fails to pass an extension to the home buyer tax credit by June 30 when the closing deadline expires. Included in that number are thousands of home buyers in every state of the union, from 390 in Wyoming to 17,700 in California, according to estimates by the National Association of Realtors®.

“We are strongly urging the Senate and the House to act quickly to pass this legislation and ease the minds and pocketbooks of these home buyers,” said NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz.

“These are not buyers who just entered into the market. These are buyers who previously met all the qualifications for the tax credit, but find themselves at the mercy of a workflow jam with lenders or other delays such as lapses in the National Flood Insurance Program, Rural Housing Service, and new home construction, and might not be able to complete the purchase of their homes by the current deadline,” said Golder. “It would be a tragedy for them not to be able to complete the purchase in time to claim the credit.”

NAR issued the following state-by-state estimate of the number of home sales that would be delayed beyond the June 30 deadline; numbers are rounded to the nearest 10:

Alabama, 2,590; Alaska, 830; Arizona, 5,440; Arkansas, 2,090; California, 17,700; Colorado, 3,390; Connecticut, 1,770; Delaware, 400; District of Columbia, 300; Florida, 14,830; Georgia, 6,270; Hawaii, 710; Idaho, 1,270; Illinois, 7,030; Indiana, 3,560; Iowa, 2, 030; Kansas, 1,840; Kentucky, 2,540; Louisiana,1,800; Maine, 840; Maryland, 2,630; Massachusetts, 3,930; Michigan, 6,470; Minnesota, 3,760; Mississippi, 1,530; Missouri, 3,600; Montana, 760; Nebraska, 1,110; Nevada, 3,800; New Hampshire, 690; New Jersey, 4,300;

New Mexico, 1,160; New York, 9,190; North Carolina, 4,890; North Dakota, 460; Ohio, 8,510; Oklahoma, 2,760; Oregon, 2,090; Pennsylvania, 5,830; Rhode Island, 500; South Carolina, 2,460; South Dakota, 500; Tennessee, 3,910; Texas, 15,340; Utah, 1,130; Vermont, 400; Virginia, 3,890; Washington, 3,190; West Virginia, 940; Wisconsin, 2,690; and Wyoming, 390.

Low Mortgage Rates Not Enough to Lure Potential Home Buyers

2010-06-28T08:55:00.000-07:00

Mortgage rates have tumbled to record lows, but high unemployment and job jitters by still-working Americans mean the milestone is unlikely to attract enough borrowers to boost the unsteady housing market, economic and real estate professionals say.

Mortgage buyer Freddie Mac reported recently that the average interest rate on a 30-year fixed-rate mortgage in the U.S. slipped to 4.69%, down from 4.75% last week. A year ago the rate was 5.42%.

The 4.69% rate is an all-time low for Freddie Mac since it began tracking 30-year mortgages in 1971. Freddie Mac’s rate assumes an average point of 0.7, which would translate to a fee of about $1,400 on a $200,000 mortgage.

However, many consumers are taking a pass on the opportunity to purchase homes, which also have come down in cost during the real estate slump, regardless of low interest rates.

“We can talk about the lowest rates ever, but if there’s no one looking to buy a house, then it’s not of any great use,” said University of Wisconsin-Whitewater economics professor Russell Kashian. “Generally in the economy, this isn’t going to have a huge impact.”

Bank Mutual chief executive Michael T. Crowley Jr. put it this way: “If somebody had a good job and felt they were going to be spared anything bad happening to their work environment, it’s a great time to buy and lock in that price and interest rate as well. The trouble is, like everything else in life, when you can least afford it is when some of these opportunities present themselves.”

Interest rates have been trending down over the past couple of months as investors concerned about world affairs and the economy have sought the safety of Treasury bonds. That has pushed down yields on the bonds and mortgage rates tend to track with Treasury yields.

After getting a boost late last year and this spring from special economic stimulus tax credits, the housing market has begun to slow down, Freddie Mac and local real estate pros said. To be eligible for a tax credit of up to $8,000 for first-time buyers and $6,500 for move-up buyers, consumers had to have a signed contract to purchase a home by April 30 and then close before July 1.

“We’re kind of in a lull period that everyone knew was going to come after the tax credits ended, and now it’s just waiting until the market kicks back in and supply and demand are more in balance,” said Mike Ruzicka, president of the Greater Milwaukee Association of Realtors.

There could be more mortgage refinancing than home-buying prompted by the lower rates, but that appears to vary from lender to lender.

After sporadic surges in refinancing in 2005, 2006, 2007 and part of 2008, many people have already obtained mortgage rates lower than 5%, Crowley said. It might not be worth it to many people to pay closing and transaction costs to shave some dollars off the monthly payment, he said.

“And some of them have met hard times, and maybe their credit report doesn’t look as good as two or three years ago, or maybe they lost their job or there’s some other stress going on,” Crowley said. “So some of them are reluctant to expose themselves to another underwriting process.”

But Brian Wickert, president of Accunet Mortgage in Butler, said refinancing activity has been brisk as rates have ratcheted downward. Wickert said, however, that anyone thinking of refinancing needs to consider how closing costs, which normally are about $1,300 in Wisconsin, and paying points would change the ultimate expense. Some mortgage lenders hype the low rates in advertising but fail to mention their transaction costs, he said.

“When it comes to mortgages, the rate is the bait and the closing costs are the hook. A borrower really has to pay attention to both when judging whether it’s worthwhile to refinance,” Wickert said.

David Clark, a Marquette University economics professor who monitors home sales in Wisconsin, said he didn’t think the record low rates would trigger “a large movement into refinancing” because many people already had done so at rates that weren’t a lot higher. Improving the housing market will take more than low rates, he said.

“It really comes down to a confluence of factors that includes jobs, which ultimately affects consumer confidence in terms of their willingness to make big purchases,” Clark said.

Fannie Mae Getting Tough on Home ‘Walkaways’

2010-06-25T08:09:00.000-07:00

Taking aim at homeowners who are able to pay their mortgage but decide it’s not worth it, Fannie Mae plans to go after them in court and to limit their access to home loans for seven years.

The government-controlled mortgage giant said that it would instruct the companies servicing its loans to recommend when it should pursue a so-called deficiency judgment—a court order requiring a defaulting borrower to pay any remaining unpaid portion of the loan after a seized home is sold.

Lenders rarely employ court proceedings to pursue foreclosures in California, nearly always opting instead for a streamlined procedure involving a trustee’s sale of the home. Under state law, lenders who opt for court proceedings can obtain a deficiency judgment if the mortgage was used to refinance a home, but not if it was used to finance a purchase.

“It’s not a hollow threat,” said Alex Creel, chief Sacramento lobbyist for the California Association of Realtors, which has called for legislation that would ban deficiency judgments in many cases of refinanced mortgages.

Fannie Mae also said it would make new mortgages harder to obtain for borrowers if it can be proved that they engaged in a “strategic default”—abandoning a home to foreclosure not because the required payments are unaffordable but because the mortgage is larger than the value of the residence. For such a borrower, Fannie said it would not buy or guarantee another home loan for seven years.

Borrowers who worked in good faith with their loan servicers to try to stay in their homes would be barred from Fannie loans for only two or three years, even if they eventually lost their homes after attempts at loan modifications failed.

The ban on getting a new Fannie loan is significant because home buyers have little choice these days for financing except for mortgages bought or backed by Fannie, its sister company Freddie Mac or the Federal Housing Administration. The three government-run entities financed 95% of new U.S. home loans last year.

Freddie Mac, which already blacklists strategic defaulters for five years, said it would study Fannie’s changes and “consider additional changes to our polices as needed to responsibly manage risks.”

Borrowers who default on FHA loans for any reason currently can’t get another loan insured by the agency for three years. Legislation pending in Congress would impose a lifetime ban on FHA loans to borrowers determined to have made a strategic default.

Fannie Mae’s get-tough policy on so-called walkaways is the latest fallout from the housing meltdown, which has eroded the once widely held belief in homeownership as the path to household wealth.

Foreclosures continue at a rate of 2.5 million a year, Federal Deposit Insurance Corp. Chairwoman Sheila Bair said, and some 11 million households owe more on their mortgage than their home is worth.

Fannie Mae’s new policies are designed to prod borrowers into pursuing alternatives to foreclosure, including short sales—transactions in which lenders allow a home to be sold and cancel the debt while accepting less than full payoff of the mortgage.

Borrowers who are slightly underwater—owing just a little more than their homes are worth—are unlikely to stop paying their mortgages if they have the resources, according to studies by research firm CoreLogic. But if the home’s value is at least 25% less than the loan amount, borrowers are far more likely to walk away.

Last March, 31% of foreclosures were described as strategic by the borrowers themselves, compared with 22% in March 2009, researchers at the University of Chicago and Northwestern University reported.

East Nashville draws new business, restaurants and more

2010-06-24T11:05:00.000-07:00

There are several other newer or soon-to-open businesses in East Nashville:

-Bagel Face Bakery, 1404 D McGavock Pike, opening July 1, www.bagelfacebakery.com

-East Nashville Community Acupuncture, 604 Gallatin Ave., Suite 113, offers acupuncture from $15 to $35 per treatment. Hours are noon-7 p.m. Tuesday, Thursday,
9a.m.–3 p.m. Friday, Saturday. 615-457-1979, http://eastnashvilleacupuncture.com.

-Eastside Smiles, 7 N. 10th St., cosmetic dental office offering implant dentistry, sedation services and will soon add an orthodontist. 615-227-2400, www.eastsidesmiles.net.

-Goodbuy Girls, 307 N. 16th St., vintage fashion and contemporary resale.

-Holland House Bar and Refuge, 935 W. Eastland Ave., hours 5 p.m.-midnight, Monday, Wednesday, Thursday; 5 p.m. – 2 a.m. Friday, Saturday and 11 a.m. – midnight Sunday. 615-262-1490, http://hollandhousenashville.com.

-Nashville Aikikai, 1701 Fatherland St., offering Japanese martial art, opening later this month.
www.asu.org/NashAikikai.

-SnapShot Interactive, 1010 Fatherland St., produces video resumes, bios and company snapshots. Hours 7 a.m. – 6 p.m. by appointment only. 615-810-9855 www.snapshotinteractive.com.

-Steve’s Restaurant & Bar, 604 Gallatin, Suite 217, features classic American fare. Hours 11 a.m. – 10 p.m. Sunday – Thursday, 11 a.m. – 11 p.m. Friday, Saturday. 615-227-8383, www.steveseastnashville.com.

-Village Pub, 1308 McGavock Pike. Hours 4-midnight Monday- Thursday, 11:30 a.m. - 1 a.m. Friday- Saturday, 11:30 a.m. - midnight Sunday. 615-942-5880.

-Water Quality & Erosion Control of Tennessee, 211 S. 17th St., opening this summer.

Restaurant Wednesday

2010-06-23T08:56:00.000-07:00

Mambu Restaurant & Bar

Two chefs in an old house doing what they love: making people happy. The fare is widely influenced from Caribbean to Far East, carefully crafted and all made fresh in house. Mambu offers four wildly imaginatively decorated dining spaces, awning-covered al fresco seating, a full bar and a unique wine list.

location
1806 Hayes Street
Nashville

615.329.1293
eatdrinkmambu.com

May Shows a Continued Strong Pace for Existing-Home Sales

2010-06-22T13:25:00.000-07:00

Existing-home sales remained at elevated levels in May on buyer response to the tax credit, characterized by stabilizing home prices and historically low mortgage interest rates, according to the National Association of Realtors®. Gains in the West and South were offset by a decline in the Northeast; the Midwest was steady.

Existing-home sales1, which are completed transactions that include single-family, townhomes, condominiums and co-ops, were at a seasonally adjusted annual rate of 5.66 million units in May, down 2.2 percent from an upwardly revised surge of 5.79 million units in April. May closings are 19.2 percent above the 4.75 million-unit level in May 2009; April sales were revised to show an 8.0 percent monthly gain.

Lawrence Yun, NAR chief economist, said he expects one more month of elevated home sales. “We are witnessing the ongoing effects of the home buyer tax credit, which we’ll also see in June real estate closings,” he said. “However, approximately 180,000 home buyers who signed a contract in good faith to receive the tax credit may not be able to finalize by the end of June due to delays in the mortgage process, particularly for short sales.

“In addition, many potential sales are being delayed by an interruption in the National Flood Insurance Program. Florida and Louisiana, also impacted by the oil spill, have the highest percentage of homes that require flood insurance.”

As the leading advocate for homeownership issues, NAR is supporting Senate amendments to extend the home buyer tax credit closing deadline through September 30 for contracts written by April 30, and to renew the flood insurance program. “Sales and related local economic activity would have been higher without delays in the closing process or flood insurance issues,” Yun noted.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 4.89 percent in May from 5.10 percent in April; the rate was 4.86 percent in May 2009.

The national median existing-home price2 for all housing types was $179,600 in May, up 2.7 percent from May 2009. Distressed homes slipped to 31 percent of sales last month, compared with 33 percent in April; it was also 33 percent in May 2009.

NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz., said home prices have been stabilizing all year. “With distressed sales at roughly the same level as a year ago, the gain in home prices is a hopeful sign that the market is in a good position to stand on its own without further government stimulus,” she said.

“Very affordable mortgage interest rates and stabilizing home prices are encouraging home buyers who were on the sidelines during most of the boom and bust cycle,” Golder said.

Pending home sales are expected to decline notably in May and June from the spring surge, but Yun added that job growth and a manageable level of foreclosures are keys to sales and price performance during the second half of the year.

A parallel NAR practitioner survey3 shows first-time buyers purchased 46 percent of homes in May, down from 49 percent in April. Investors accounted for 14 percent of transactions in May compared with 15 percent in April; the remaining sales were to repeat buyers. All-cash sales were at 25 percent in May, edging down from a 26 percent share in April.

Total housing inventory at the end of May fell 3.4 percent to 3.89 million existing homes available for sale, which represents an 8.3-month supply4 at the current sales pace, compared with an 8.4-month supply in April. Raw unsold inventory is 1.1 percent above a year ago, but is still 14.9 percent below the record of 4.58 million in July 2008.

Single-family home sales declined 1.6 percent to a seasonally adjusted annual rate of 4.98 million in May from a pace of 5.06 million in April, but are 17.5 percent above the 4.24 million level in May 2009. The median existing single-family home price was $179,400 in May, which is 2.7 percent above a year ago.

Single-family median existing-home prices were higher in 16 out of 20 metropolitan statistical areas reported in May from a year ago. In addition, existing single-family home sales rose in 18 of the 20 areas from May 2009.

Existing condominium and co-op sales fell 6.8 percent to a seasonally adjusted annual rate of 680,000 in May from 730,000 in April, but are 32.6 percent above the 513,000-unit pace in May 2009. The median existing condo price5 was $181,300 in May, up 3.4 percent from a year ago.

Regionally, existing-home sales in the Northeast fell 18.3 percent to an annual level of 890,000 in May from a surge in April, but are 12.7 percent higher than a year ago. The median price in the Northeast was $240,200, down 2.2 percent from May 2009.

Existing-home sales in the Midwest were unchanged in May at a pace of 1.33 million and are 22.0 percent above May 2009. The median price in the Midwest was $150,700, up 2.2 percent from a year ago.

In the South, existing-home sales increased 0.5 percent to an annual level of 2.15 million in May and are 22.9 percent above a year ago. The median price in the South was $159,000, up 1.0 percent from May 2009.

Existing-home sales in the West rose 4.9 percent to an annual rate of 1.29 million in May and are 15.2 percent higher than May 2009. The median price in the West was $221,300, up 7.4 percent from a year ago.

First-Time Home Buyers: Tips to Make Your House a Home

2010-06-21T09:23:00.000-07:00

After getting the keys to their new homes, many first-time home buyers are excited about finally having the opportunity to personalize and furnish their new house. From coffee tables to lamps to lawnmowers, many previous renters leap into homeownership quickly realizing they need to do a lot of shopping to truly make their house a home.

“Whether you’ve been living in an apartment with roommates or at your parents’ house, many first-time home buyers do not think about all the items they need – and want – when moving into a house,” said Janice Jones, national vice president of merchandising for Centex. “With a little advance planning and budgeting, you won’t break the bank to make your new home a reflection of your personal style and showcase your pride of homeownership.”

A typical home buyer spends $7,400 on average on their home, with more than half of that spent in the first year after purchase, according to the National Association of Home Builders.

While many first-time home buyers may not have accounted for this level of spending, Jones offers advice on what types of items to purchase to not only properly maintain and live in the home, but also more importantly, items that help new homeowners feel like their house is a place to call home.

Furnishings
Many first-time home buyers no longer want their parents’ hand-me downs or their childhood bedroom set. From sofas to dining room sets to mattresses, many first-time home buyers take the opportunity to upgrade their furniture when moving into their new home. According to an NAHB study, furnishings take the biggest chunk of the budget, with home buyers spending about $5,300 on furnishings during the first year after buying a home. The biggest ticket item for all households is bedroom furnishings, including mattresses, followed by sofas.

Window coverings and linens
The median square footage of homes bought by first-time buyers is 1,500. So, you can only imagine the number of windows that need to be covered to ensure privacy and security in a home. According to Jones, many home buyers don’t account for this in their budget. Additionally, with the ability to now paint and decorate each room, new homeowners find that they want to purchase new bedroom and bathroom linens.

Garden tools
Since a first-time home buyer is likely to move into their home from an apartment, unless you plan on hiring a gardener, you’ll need to purchase a few basic gardening tools, including a lawnmower, garden hose, sprinkler and a shovel (for winter weather).

Flat screen TV
Let’s face it: many home buyers shop for their new home while taking into a consideration how a new, large, flat-screen television set will be situated in their new living space. So, it’s not a surprise that a hot item on the list is purchasing an entertainment system.

However, you’ll also need the basic appliances in your new home: a refrigerator, stove, and a washer/dryer. While many existing homes usually come with appliances, a home buyer needs to take inventory as to whether or not they will need to purchase these big ticket items before they purchase their new bedroom set.

Basic tool kit
Every home needs a well-stocked tool box. Many home improvement stores have sets you can purchase, but make sure it includes a hammer, screw drivers, pliers, wrenches, a tape measure and a staple gun.

“My biggest piece of advice for new home buyers is to be creative and tackle this room by room,” said Jones. “For example, after outfitting your home with the necessary items—like appliances and window coverings—move on to the kitchen and family room spaces. This area is the heart of your home where everyone gathers.

“Look for great values on the items you need that will be utilized most. Take your time and get the feel of how you want to use each space for both function and enjoyment. This strategy allows homeowners to stage their purchases and add new furnishings as the budget allows. Decorating your new home should be fun and a reflection of your personal style.”

Price Reductions Unchanged as Sellers Wait to See How Aggressive Buyers are during Summer Season

2010-06-18T08:43:00.000-07:00

Trulia.com, smart real estate search to help you make better decisions, recently announced that 22% of listings currently on the market in the United States as of June 1, 2010 experienced at least one price reduction, which is a slight decrease from 23.6% in June 2009. The total dollar amount slashed from home prices was $26.7 billion and the average discount for price-reduced homes continued to hold at 10% off of the original listing price.

“Sellers are optimistic heading into the summer season because of the strong sales figures from the spring. The spring sales were fueled by the expiration of the tax credit and my concern is that this heavy activity is providing sellers with a false state of optimism,” said Pete Flint, co-founder and CEO of Trulia. “We are already starting to see rising inventory levels and I believe this will be the story of the summer. For the unforeseen future, buyers will continue to have the negotiating power and I expect we will see sellers get aggressive via price cuts throughout the summer.”

Biggest Winners and Losers
Cities in the Western U.S. experienced the largest decreases in price reductions compared to the previous year. Las Vegas, NV led the way with a 67% decrease and six California cities saw a decrease in price reductions of 24% or more, including Oakland, San Jose, Los Angeles, Sacramento, San Francisco and San Diego.

On the other end of the spectrum, cities in the Midwest and South experienced some of the largest percentage increases in price reductions in year-over-year comparison. Kansas City, MO jumped 55% from June 2009 to June 2010, while other cities such as Arlington, TX, Cleveland, OH, Louisville, KY and Houston, TX all saw increases in price reductions of 30% or more.

A Class of Its Own
For the second month in a row, Minneapolis, MN saw 40% of its listings reduced in price. No other city has reached this mark since Trulia started tracking home price reductions in April 2009. With an average discount for price-reduced homes at 8%, the city’s total dollar amount slashed from home prices was $26.4 million.

Luxury Market Holds Steady Post Tax Credit Incentive
Price reduction levels for luxury homes (those listed at $2 million and above) continue to hold steady with 21% of homes seeing a price reduction and with an average reduction of 14%. Homes in this category account for the less than 2% of total inventory but account for almost 25% of total dollars slashed off all the homes for sale.

NAR Praises House Passage of FHA Reform Bill

2010-06-17T10:39:00.000-07:00

The National Association of Realtors® applauded the House for overwhelming passage of FHA reform legislation that would allow the Federal Housing Administration to adjust monthly premiums on mortgage insurance.

This bill, H.R. 5072, FHA Reform Act of 2010, would strengthen the FHA loan insurance program while keeping it available and affordable to responsible home buyers. Allowing FHA to raise the monthly insurance premium would let FHA lower the up-front premium that places a burden on cash-strapped borrowers at closing.

“As the leading advocate for homeownership and housing issues, NAR is very pleased that FHA will be allowed to play its intended countercyclical role to provide qualified borrowers with access to prime credit. FHA is a critical part of our nation’s economic recovery,” said NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz.

En route to passage, the House defeated an amendment that would have increased the FHA down payment from 3.5 percent to 5 percent, which would have disenfranchised more than 300,000 potential homeowners and would not have contributed significantly to FHA cash reserves.

“The current 3.5 percent down payment represents a significant financial commitment and sufficient investment to insure a borrower’s seriousness about homeownership,” said Golder. The proposed change could have an especially harsh impact on African American and Hispanic borrowers, who traditionally have much lower accumulated wealth and have benefited from the opportunities offered by fully documented, standard FHA loans with low down payments.

She also praised FHA’s aggressive efforts to protect taxpayers and manage credit risk.

Restaurant Wednesday

2010-06-16T08:44:00.000-07:00

Fido

Fido straddles the line between upscale coffeehouse and casual restaurant. The all-day menu fetures everything from blueberry pancakes to fish tacos with daily specials ranging from pulled pork sandwiches to poached salmon. Fresh roasted organic and fair trade coffee comes from Fido's sister store, Bongo Java. Desserts made on premisis.

location
1812 21st Avenue South
Nashville

615.777.3436(FIDO)
fidocafe.com

NAR Commends Senators for Offering Homebuyer Tax Credit Extension, Urges Senate and House to Quickly Pass Legislation

2010-06-15T11:35:00.000-07:00

Washington, June 11, 2010

The National Association of Realtors® today expressed thanks on behalf of America’s homebuyers to three Senators for introducing a measure to extend the present home-buyer tax credit closing deadline to Sept. 30. They are Senate Majority Leader Harry Reid, D-Nev., and Sens. Johnny Isakson, R-Ga., and Chris Dodd, D-Conn.

“As the leading advocate for homeownership and housing issues, NAR commends these Senators for their attentiveness and sensitivity to thousands of qualified home purchasers, who through no fault of their own, are not able to meet the closing deadline of June 30 for the homebuyer tax credit. Now we urge the Senate and the House to act quickly to pass this legislation and ease the minds and pocketbooks of these homebuyers,” said NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz.

The measure was offered as an amendment to H.R. 4213, a tax extension bill now in the Senate.

NAR estimates the number of home buyers who have qualified for the tax credit and met the contract deadline of April 30, but who would not be able to close their transaction by the June 30 deadline, could go as high as 180,000. Realtors® have reported as many as one-third of qualified applicants have been notified by lenders that their mortgages will not close before June 30 due to the sheer volume of applications in the pipeline.

“These are not buyers who just entered into the market. These are buyers who previously met all the qualifications for the tax credit, but find themselves at the mercy of a work-flow jam with the lenders or other delays and might not be able to complete the purchase of their homes,” said Golder. “It would be a tragedy for them not to be able to complete the purchase in time to claim the credit.”

Golder said she also wanted to make this clear: “This amendment does not extend the deadline for home buyers to qualify for the tax credit; it extends the deadline for closing the transaction, from June 30 to Sept.30. Since these applications were already in the pipeline and figured into the program’s cost, the extension of the closing deadline should not incur any further government costs.”

Fed Chief Cautiously Optimistic about Economy

2010-06-14T08:40:00.000-07:00

The U.S. economy is in a moderate recovery and should continue growing through next year, but the unemployment rate is expected to remain higher than usual, and it will take “a significant amount of time” to replace the jobs that have been lost in the recession, Federal Reserve Chairman Ben Bernanke said recently.

In testimony before the House Budget Committee, Bernanke offered a mix of optimism and reality check. He pointed to numerous signs of improvement in the economy, but cautioned that improvement in the vital housing sector has been shallow and remains vulnerable.

The Fed’s release of the Beige Book, a survey of economic conditions conducted by its district banks, later confirmed Bernanke’s views. The survey found all 12 Fed districts reporting economic growth, the first time that’s happened since a deep recession began in December 2007.

Private forecasters shared Bernanke’s growing optimism.

Mark Zandi, the chief economist for Moody’s Analytics, recently released a report on economic conditions in the nation’s largest metropolitan areas that was encouraging.

“The economic expansion is broadening out across the country, with nearly two-thirds of the nation’s metro areas now out of recession,” Zandi told McClatchy Newspapers. “The strongest areas are mostly in the South and Midwest, as the economy is benefiting from the strong turn in manufacturing activity, a solid farm economy and more stable housing markets.”

In another positive sign, the Labor Department reported that job openings leapt in April to their highest level in 16 months, signaling that the private sector is ripe for a return to hiring.

“We’re still expecting that the job machine gets cranked up and pushes the unemployment rate a few tenths of a percentage point lower by the end of the year,” said Chris Varvares, the president of Macroeconomic Advisers LLC, the influential St. Louis forecaster. The firm expects 3.7% growth this year and unemployment, now at 9.7%, to dip to the low 8% range next year.

The Fed expects the economy to grow in the range of 3.5% this year, Bernanke said, and faster next year as stimulus spending by the government gives way to business and consumer demand for goods and services.

“This pace of growth, were it to be realized, would probably be associated with only a slow reduction in the unemployment rate over time. In this environment, inflation is likely to remain subdued,” Bernanke said. He later added, “In all likelihood, however, a significant amount of time will be required to restore the nearly 8.5 million jobs that were lost over 2008 and 2009.”

The economy has been growing steadily, and the nation has added jobs in five of the last six months. There also have been less publicized improvements. “Real consumer spending has risen at an annual rate of nearly 3½% so far this year, with particular strength in the highly cyclical category of durable goods,” Bernanke testified. “Consumer spending is likely to increase at a moderate pace going forward, supported by a gradual pickup in employment and income, greater consumer confidence and some improvement in credit conditions.” That’s all likely to increase the demand for goods and services, fueling further economic growth in what economists call a virtuous cycle, he suggested.

“Looking forward, investment in new equipment and software is expected to be supported by healthy corporate balance sheets, relatively low costs of financing of new projects, increased confidence in the durability of the recovery, and the need of many businesses to replace aging equipment and expand capacity as sales prospects brighten,” Bernanke said. “More generally, U.S. manufacturing output, which has benefited from strong export demand, rose at an annual rate of 9% over the first four months of the year.”

For all the positive signs, however, a dark cloud remains over the real estate and construction industries. The temporary boost from a home buyer tax credit is likely to fade now that the April 15 deadline for the program has passed.

The Fed chairman said that “looking through these temporary movements, underlying housing activity appears to have firmed only a little since mid-2009, with activity being weighed down, in part, by a large inventory of distressed or vacant existing houses and by the difficulties of many builders in obtaining credit.”

As if to cement that point, the Mortgage Bankers Association reported that mortgage applications fell last week to their lowest level since 1997. It was a clear sign that the expiration of tax credits reduced incentives for home sales.

Things aren’t much better in commercial real estate, Bernanke suggested, as spending on nonresidential buildings has been curtailed because of high vacancy rates, low property prices and difficulty in obtaining loans.

“Meanwhile, pressures on state and local budgets, though tempered somewhat by ongoing federal support, have led these governments to make further cuts in employment and construction spending,” he said.

Bernanke expressed confidence that the growing debt crisis in Europe won’t slow growth in the United States and pitch the economy back into recession, suggesting that events in Europe will have only a modest impact so long as the U.S. economy continues to grow.

Mounting government and private-sector debt in Europe has led to concerns of default in several European Union countries, and, given the swelling U.S. federal budget deficit, Bernanke warned lawmakers to get U.S. borrowing under control.

Once economic conditions have returned to normal, Congress and the president must address the structural problems in the nation’s health and welfare programs as baby boomers, the 75 million Americans born from 1946 to 1964, enter retirement and strain government programs, Bernanke said.

The Fed chief also took a victory lap of sorts. When House Budget Committee Chairman John Spratt, D-S.C., asked him whether he thought that unpopular government spending and bailout programs helped speed a turnaround, Bernanke said, “Yes, Mr. Chairman, I do.”

6 Backyard Improvement Ideas to Add More Value to Your Home

2010-06-11T07:59:00.000-07:00

If you’re like most homeowners, there is never a shortage of options when it comes to projects around the house. But studies have shown that some of the highest return on household improvements can come from those on the outside, not the inside.

A primary reason is that outside investments can produce curb appeal, which is especially important if you are planning to sell your home. Those same improvements can enhance the enjoyment factor if you and your family plan to stay in your home.

For example, one national industry resource—the National Association of Realtors, reported recently their experience shows a new wood deck produces the second highest return on home improvement investment of any common addition, remodel or replacement project.

However projects don’t have to be big to add value or enjoyment, according to Jimmy Rane, president of Great Southern Wood Preserving, a leading producer of pressure-treated lumber products and maker of YellaWood brand products.

The following popular outside improvement projects will increase the curb appeal or value of a home:

Adirondack chairs—Uniquely-American classic outdoor furniture is made entirely of wood and has a straight back and seat, which are set at a slant to sit comfortably on a hillside or mountain incline, but still be comfortable at any angle.

Gazebo—A gazebo can be freestanding or attached to a garden wall, roofed and open on all sizes to provide shade or shelter.

Planters and window boxes—Planters have become popular because they are both functional and ornamental. Additionally, some can be moved frequently to account for seasonal weather or just to create a change in scenery.

Picnic table—Picnic tables go well on a patio or a deck, but equally as well on the grass or under a tree in the yard. A traditional picnic table is all in one piece so that it wears well without a lot of maintenance.

Trellis—A trellis can function as a unique sun screen or it can be the framework for an outdoor hanging garden. Building it with pressure treated lumber can add life by minimizing rotting and other threats.

Trash can corral or compost bin—While many outdoor projects tend to be cosmetic in nature, here are two ideas that are both practical and pretty. With a trash can corral, you can hide unsightly trash cans and with a compost bin, you can reduce your own carbon footprint in a way that doesn’t take away from the visual appeal of the place.

MAY MARKS 8TH CONSECUTIVE MONTH OF INCREASE IN HOME SALES

2010-06-10T10:33:00.000-07:00

Home sales continued to be strong in the Middle Tennessee region during May with 2,270 home closings, representing a 27.3% increase from the 1,783 closings reported during May of 2009. Year-to-date home sales are up 20.4% from this time last year. Pending sales also rose with 2,124 sales pending at the end of May compared to 2,000 in May of 2009.

Restaurant Wednesday

2010-06-09T08:39:00.000-07:00

Allium

Located on the ground floor of the 5th and Main building on the resurgent east side, Allium is less than a mile from Downtown Nashville. Specializing in straightforward interpretations of classic bistro fare, Allium is the perfect spot to grab a sophisticated bite before the Symphony, after the theatre, or maybe on a plain old Tuesday night. It's about simple, fresh, value-focused dishes served in a stunning contemporary room overlooking the Nashville skyline.

location
501 Main Street
Nashville

615.242.3522
alliumnashville.com

Energy Concerns and Green Housing: What’s in It for Us?’

2010-06-08T10:40:00.000-07:00

As the green movement continues to gain popularity across the real estate market, real estate professionals and consumers alike are curious as to what is in store for the population as we continue to focus on energy concerns and green housing. In this month’s Power Broker Roundtable, industry leaders Tom Wilkins, Bob Hamrick and Kurt Heater discuss whether we can use public awareness of green issues to boost our bottom lines.

Moderator:
Steve Brown, Special Liaison for Large Firm Relations, NAR

Participants:
Tom Wilkins, CEO, Better Homes & Gardens, The Poconos, Pennsylvania
Bob Hamrick, CEO, Coldwell Banker Premier, Las Vegas, Nevada
Kurt Heater, Pres., Prudential Sherm Heater, Grant’s Pass, Oregon

Steve Brown: These days, it seems the hottest topic at cocktail parties is global warming. Some say greenhouse gases are dooming our grandkids to a future of drought and flooding. Skeptics argue that climate change is inevitable and beyond the scope of anything we humans do. While the truth is likely somewhere in between, most people agree that sensible conservation and practical oversight is probably a healthy approach –and the efforts we make today will put energy-saving dollars in our pockets tomorrow. That’s one reason most of us practice some sort of conservation effort; recycling trash, reducing our use of paper, or heating our swimming pools with solar panels. It’s also the reason why NAR built the first LEED-certified* green building in Washington, DC. NAR believes REALTORS® need to be on the leading edge of social concerns—which is also why they developed NAR’s Green Designation for today’s real estate professionals—and why they closely monitor all legislation regarding environmental issues. I have earned the Green Designation myself because I believe it’s important to be at the forefront of this movement. As green issues take a more prominent place in social discourse, we take justifiable pride in our industry’s commitment to the environment. A visit to NAR’s Green Resource Council (www.greenresourcecouncil.org) will give you more information. But can we use public awareness of green issues to boost our bottom lines? For some answers, we’ve invited a panel of real estate pros from various parts of the country. Tom, what’s the situation in Pennsylvania?

Tom Wilkins: The economic climate has had an effect here—especially in the Poconos, where the inventory is heavily loaded with “as is” vacation properties rather than new construction. So today, most people are concerned with savings, like tax advantages on a second home. The key to getting their attention on green issues would be, “how much money will that solar heating system save me in the course of a year?”

Bob Hamrick: Yes, I think the idea of “going green” started to gain momentum before the housing downturn hit. Today, a lot of Las Vegas buyers—and most investors—are pretty focused on opportunistic purchases like REOs and short sales. As things start to improve, real estate consumers will turn their attention back toward “green.”

Kurt Heater: Personally, we built our own home to take advantage of solar energy. We knew it would take years for energy savings to offset the initial costs, but I’m a child of the original Earth Day movement, so I suppose it rubbed off on me. While I think that builders of new construction are tending toward energy conservation, I think the rush to buy cheap right now is diverting buyers’ attention a bit. We had a huge run-up in prices between 2001 and 2005, and short sales and foreclosures at this point are probably 50% of our business now.

Steve Brown: So if I’m hearing you right, as the market stabilizes, consumers are taking a broader interest in green issues?

Tom Wilkins: I think that’s definitely true. In our case, the Better Homes and Garden brand is committed to promoting good environmental practices. Almost all of our agents have NAR’s Green Designation. I think it’s safe to say as Realtors, we all got caught up in staying alive these past couple of years—but as the market improves the focus will shift back to some extent toward practical energy concerns. We need to be prepared for that.

Bob Hamrick: I agree. The effort to compete may have slowed down the green effort, but I expect today’s move toward green construction will become the standard for the future. The new CityCenter in Las Vegas, which is really an extraordinary resort destination, was designed and built to conserve energy and preserve natural resources. It’s just a more responsible approach to building, and I think that signals a growing trend. Getting our agents green-certified and knowledgeable is certainly a place to start.

Kurt Heater: Yes, I think most people respect the green concept. We need to up the appeal by balancing environmental sustainability with economic practicality.

Steve Brown: In other words, builders need to keep on building green, and Realtors need to be prepared to help customers understand the practical advantages.

Tom Wilkins: I would say so. The customer’s first question to himself will always be, do I like the house? If he doesn’t, the issue of energy conservation won’t be enough to change his mind. But if he does, then energy savings and conservation become an undeniable bonus.

Steve Brown: So we need to be prepared to help our customers understand exactly what “going green” means—both in terms of what we gain and what we save?

Kurt Heater: Right. Which, of course, is the purpose of NAR’s Green Designation. I suppose that’s what’s in it for us…another way to add value to services.

Bob Hamrick: Well said. Adding value is key. It’s how we outperform the competition.

*LEED (Leadership in Energy and Environmental Design) is a benchmark building standard set by the U.S. Green Building Council.

Banks bear weight of bad loans

2010-06-07T09:33:00.000-07:00

Banks in Tennessee have nearly three times more foreclosed properties on their books than lenders nationwide, a stark reminder of potential economic development that came to a grinding halt in Middle Tennessee.

According to the first quarter 2010 tally, “other real estate owned” — properties foreclosed on by banks to recoup money from borrowers failing to pay back loans — made up 0.91 percent of the assets of institutions in Tennessee, according to the Federal Deposit Insurance Corp.

While that number itself may seem small, it dwarfs the national average of 0.35 percent for U.S. banks and is up from 0.53 percent one year ago.

Of the banks based in Middle Tennessee, these properties account for 0.89 percent of the local banks’ assets and $210 million in value on the banks’ balance sheets.

For a look at which local banks have the most bank-owned properties, and what kinds, click here.

Tennessee, which has not had a bank failure in the economic downturn, is still in better shape than floundering markets such as Georgia, where failed real estate was 1.23 percent of assets.

But local and national banking experts said Tennessee’s high amount of bank-owned real estate compared to the rest of the country shows how deeply Tennessee was affected as the housing market crumbled.

“[In many instances], the banks lent on the concept that you’ll always have real estate inflation,” said Tom Lawless, a Nashville attorney who helps banks recover money from borrowers.

The “other real estate owned” on banks’ books usually represents the worst of the loans they’ve worked through. Standards vary between banks for when borrowers require extra attention, how much leeway they get to restructure loans and when legal action such as foreclosure is necessary.

The number doesn’t necessarily reflect what shape a bank will be in to lend, experts said, but it does highlight a difficult challenge for many lenders.

For instance, FDIC data showed GreenBank holds nearly 2.7 percent of its assets in bank-owned properties, about three times the state average. Jim Adams, chief financial officer, said the institution has been more aggressive than other banks about processing bad loans and writing down the true value of property.

“A lot of banks are in the state of denial, and they’re not as aggressive, at least in my opinion,” said Adams, who credited the Greeneville bank’s tactics with improving earnings in the first quarter.

Mark Muth, a Nashville senior research analyst with Howe Barnes Hoefer and Arnett of Chicago, said individual banks can have higher numbers because they’re aggressive.

But that doesn’t account for the real estate “speculation” near Nashville, Memphis and parts of eastern Tennessee that he said exceeded other parts of the country and made for lending destined to go bad.

Banks look to sell the real estate on their books, sometimes at discounted prices to real estate agents or developers who think they can “flip” a house for profit, jump-start a housing project or turn around a failed retail center.

But in the meantime, each property is a drag on banks’ books and symbolizes a project that might have spurred economic development under different circumstances.

David Luecke can tell you about hundreds of them. His company, Capitol Homes Inc. of Franklin, emerged from Chapter 11 bankruptcy protection in April after the lagging real estate market brought down his sprawling home construction and land development operation.

Luecke, who now focuses on custom homes and repair in the wake of May’s historic flooding, estimates that he owned about 600 lots in various stages of development.

He was able to sell the majority, but lenders who bankrolled his projects seized about 200, he said. Now, much of the land will revert to agricultural use or sit unused with nobody able to develop it in a depressed market, he said.

“Clearly it would be better off raising goats than having a subdivision,” he said.

Going forward, experts say banks will feel continued pain if they don’t value their failed real estate properly — stringing out the losses they and their borrowers already have taken as they try to sell the property.

Q&A: Snagging failed properties can be a steal
Carl Storey is a principal with Baker Storey McDonald Properties of Nashville, which does some of its business by acquiring “distressed properties” mainly related to commercial real estate. That can include “other real estate owned,” or property that banks foreclose upon to recoup money from borrowers failing to pay back their loans. It’s a glimmer of opportunity amid an otherwise undesirable situation for banks, real estate professionals and those inhabiting the failed properties.

Q: How did you get started dealing in distressed properties?

My first experience with distressed properties was in (the) early ’90s during the savings and loan crisis. More recently, our focus on developing retail real estate has led us to opportunities that required us to navigate distressed situations. For example, we identified an opportunity in Murfreesboro we wanted to pursue that turned out to be a bankruptcy situation. We ended up acquiring the note and foreclosing on the property ourselves.

Q: How important is it to your business?

Absent a robust economy and commercial real estate market, having the expertise to deal with distressed properties has been crucial. It’s helped us navigate difficult waters and opened the door to opportunities we might not have seen otherwise.

Q: What are the most common reasons a project failed?

It’s hard to generalize about this, but I suppose the biggest issue we are all dealing with is retail rents and property values are 10 percent to 20 percent less than they were before the downturn. This results in a number of hardships including inability to service debt, refinance, source additional equity, and overall difficulty in securing the financial resources to weather the storm or breath new life back into troubled projects.

Q: What turns a failed project into a successful one?

Access to capital, patience and, probably most importantly, location will eventually determine a project’s survival. Great retail locations should eventually emerge as successful projects. Poorly chosen locations will struggle longer or may have to be recycled into a different use than retail.

Pending Home Sales Surge Continuing

2010-06-04T07:31:00.000-07:00

Pending home sales have risen for three consecutive months, reflecting the broad impact of the home buyer tax credit and favorable housing affordability conditions, according to the National Association of Realtors®.

The Pending Home Sales Index,* a forward-looking indicator, rose 6.0 percent to 110.9 based on contracts signed in April, from an upwardly revised 104.6 in March, and is 22.4 percent higher than April 2009 when it was 90.6. That follows gains of 7.1 percent in March and 8.3 percent in February.

Pending home sales are at the highest level since last October when the index reached 112.4 and first-time buyers were rushing to beat the initial deadline for the tax credit. The data reflects contracts and not closings, which usually occur with a lag time of one or two months.

Lawrence Yun, NAR chief economist, said this second round of surging sales from the tax credit extension looks as strong as the original tax credit. “There were concerns that only a small pool of buyers were left to take advantage of the tax credit extension. But evidently the tax stimulus, combined with improved consumer confidence and low mortgage interest rates, are contributing to surging sales,” he said. “The housing market has to get back on its own feet and now appears to be in a good position to return to sustainable levels even without government stimulus, provided the economy continues to add jobs.” NAR expects a net of 1 million additional jobs in the second half of this year and about 2 million in 2011.

“The home buyer tax credit brought close to 1 million additional buyers into the market, which is now helping the trade-up market and has significantly improved the inventory situation. This stabilized home prices more quickly and has preserved about $900 billion in home equity; in turn, that is keeping additional households from going underwater and risking foreclosure,” Yun said.

The PHSI in the Northeast jumped 29.5 percent to 97.9 in April and is 24.5 percent above a year ago. In the Midwest the index rose 4.1 percent to 104.2 and is 17.9 percent above April 2009. Pending home sales in the South slipped 0.6 percent to an index of 123.9, but is 31.3 percent higher than a year ago. In the West the index rose 7.5 percent to 107.9 and is 12.0 percent higher than April 2009.

“A big concern surfacing recently is insufficient time to close the deal at the settlement table. Under normal circumstances, two months would be enough time from contract signing to settlement date,” Yun said. “However, the recent housing cycle has brought long delays related to the short sales approval process by banks, and from ongoing appraisal issues. There could be a sizable number of homebuyers who responded to tax credit incentives, but may encounter problems meeting the settlement deadline by June 30.” Because of these market challenges, NAR has asked Congress to provide flexibility on the deadline for closing.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.

Middle Tennessee foreclosure rate rises

2010-06-03T11:49:00.000-07:00

Foreclosure rates again increased in the Nashville area, according to data released today by CoreLogic.

The foreclosure rate in the Nashville-Davidson-Murfreesboro-Franklin area stood at 1.49 percent in April, an increase over the 0.95 percent of April 2009. The Nashville-area foreclosure rate remains well below the national average of 3.2 percent, according to CoreLogic. It also remains below the overall state foreclosure rate of 1.59 percent.

The mortgage delinquency rate also increased in the Nashville area in April. According to CoreeLogic, 6.2 percent of area mortage loans were 90 days or more delinquent in April, compared to 4.1 percent in April 2009.

Read more: Middle Tennessee foreclosure rate rises - Nashville Business Journal

With offices changing, closing, here's how to find a post-flood help center

2010-06-01T12:04:00.000-07:00

A month after the devastating flood that caused more than $2 billion in damage in Middle Tennessee, some of the offices that were set up to help people recover from the disaster have closed, and others are changing their missions.

The Tennessee Emergency Management Agency and the Federal Emergency Management Agency opened a total of 64 disaster recovery centers in the wake of the flooding. Sixteen of them remain open. Other disaster recovery centers — including those in Humphreys, Dickson and Perry counties — are preparing to refocus on Small Business Administration disaster loan outreach.

"The number of visits is declining, which is why we are closing several of them and transitioning others to loan outreach centers," federal coordinating officer Gracia Szczech said in a news release. "However, people from any county can continue to visit any of the recovery centers that remain open."

People also can get answers and apply for assistance by calling (800) 621-3362 or visiting disasterassistance.gov.

During a conversation with the Nashville Business Journal last week, FEMA official Jenefeness Clark said disaster recovery center locations are constantly re-evaluated based on community need. An updated list of help centers can be found here.

Read more: With offices changing, closing, here's how to find a post-flood help center - Nashville Business Journal

TN gets $4.6M flood grant for jobs, Catholic Charities calls for more aid

2010-05-28T07:39:00.000-07:00

The U.S. Department of Labor has awarded $4.67 million to the Tennessee Department of Labor and Workforce Development in order to create temporary jobs in the wake of this month's devastating flooding.

“The images of Nashville under water have been heart-breaking,” said Secretary of Labor Hilda L. Solis. “This grant will support ongoing recovery efforts and provide temporary employment to Tennesseans as they clean-up flood-impacted areas and return their lives to normalcy.”

The announcement comes the same day that Catholic Charities USA announced that it has not seen the same level of giving in response to Nashville's flooding that it saw in the wake of Hurricane Katrina and the Haiti earthquake. The huge human services and disaster response organizer also said that giving in the wake of the Gulf oil spill has also been disappointing.

"While our local Catholic Charities' agencies in New Orleans and Nashville are fully engaged and receiving strong local and institutional support, we are not seeing the generosity of individual Americans across-the-board," said Rev. Larry Snyder, President and CEO of Catholic Charities USA, in a news release. "Frankly, Nashville's flood devastation has been somewhat overshadowed by the oil spill, and the entire Gulf Coast situation has been more of a business story and technology remediation story than anything that truly portrays the human impact. The good hearts of our country have not been touched in a way to feel a need to contribute."

Read more: TN gets $4.6M flood grant for jobs, Catholic Charities calls for more aid - Nashville Business Journal

Commercial Real Estate Vacancies to Peak Near Early 2011

2010-05-27T12:57:00.000-07:00

Vacancy rates continue to rise in most commercial sectors and are not expected to level out in most markets until the end of this year or early 2011, according to the National Association of Realtors®.

Lawrence Yun, NAR chief economist, said there is one bright spot in commercial real estate. “The multifamily sector can expect increased demand as the economy creates jobs and new households are formed, likely in the second half of this year,” he said. “However, the office, warehouse and retail sectors continue to experience the delayed effects of the recession. These sectors should see gradual improvement after jobs pick up and create additional demand for space, meaning a broader improvement in commercial real estate is likely in 2011.”

The Society of Industrial and Office Realtors®, in its SIOR Commercial Real Estate Index, an attitudinal survey of nearly 700 local market experts1, confirms that significant fallout from the recession remains, but to a lesser extent.

The SIOR index, measuring 10 variables, increased 2.7 percentage points to 38.2 in the first quarter, compared with a level of 100 that represents a balanced marketplace. This is the second gain following nearly three years of declines; the last time the market was in equilibrium was in the third quarter of 2007.

Development activity remains at a standstill with nine out of 10 respondents saying that it is virtually nonexistent in their markets.

Looking at the overall market, commercial vacancy rates appear to be approaching a plateau, according to NAR’s latest COMMERCIAL REAL ESTATE OUTLOOK.2 The NAR forecast for four major commercial sectors analyzes quarterly data in the office, industrial, retail and multifamily markets. Historic data were provided by CBRE Econometric Advisors.

Office Market

With an elevated level of sublease space available, vacancy rates in the office sector are projected to increase from 16.9 percent in the first quarter of this year to 17.6 percent in the first quarter of 2011, but should ease later next year.

Annual office rent is likely to fall 2.3 percent this year and decline another 2.1 percent in 2011. In 57 markets tracked, net absorption of office space, which includes the leasing of new space coming on the market as well as space in existing properties, is forecast to be a negative 24.6 million square feet this year and then a positive 25.5 million in 2011.

Industrial Market

Leasing activity in the industrial sector is below historical levels with higher vacancies, more tenant concessions from landlords and a steeper decline in rental rates. In addition, obsolete structures remain on the market. Industrial vacancy rates are expected to rise from 14.3 percent in the first quarter of 2010 to 14.8 percent in the first quarter of 2011, then decline modestly as the year progresses.

Annual industrial rent will probably drop 6.3 percent this year, and decline another 1.5 percent in 2011. Net absorption of industrial space in 58 markets tracked is seen at a negative 90.0 million square feet this year and a positive 135.6 million in 2011.

Retail Market

Retail vacancy rates should rise modestly from 12.6 percent in the first quarter of this year to 12.8 percent in the first quarter of 2011, and should hold at that level for most of next year.

Average retail rent is projected to decline 1.5 percent in 2010, then edge up by 0.4 percent next year. Net absorption of retail space in 53 tracked markets is likely to be a negative 3.7 million square feet this year and then a positive 8.9 million in 2011.

Multifamily Market

The apartment rental market – multifamily housing – is expected to benefit from an improving economy and job market. Multifamily vacancy rates are forecast to decline from 7.3 percent in the first quarter of this year to 6.3 percent in the first quarter of 2011.

With recent additions to supply, average rent is likely to slip 1.5 percent this year, and then rise 1.2 percent in 2011. Multifamily net absorption should be 145,700 units in 59 tracked metro areas this year, and another 214,500 in 2011.

Restaurant Wednesday

2010-05-26T09:26:00.000-07:00

Flyte World Dining and Wine

With emphasis on fresh, organic and humanely raised ingredients, Chef Jake Stearns creates contemporary, seasonal menus featuring spectacular presenations and flavors that complement an eclectic wine list. Set in a casually elegant, dramatic space, Flyte provides unique opportunities to sample deliciously inventive flavor combinations and constantly evolving cuisine and beverage pairings.

location
718 Division Street
Nashville

615.255.6200
flytenashville.com

For Your Clients: 5 Tips to Save Money for First-Time Home Buyers

2010-05-25T10:49:00.000-07:00

Those who missed taking advantage of the first-time buyer tax credit but who are still planning the purchase of their first home, continue to have a wealth of opportunities in today’s marketplace. A few smart steps can save first-time buyers thousands of dollars. Here is a look at some of the ways how:

1. Don’t buy if you don’t plan to stay
If you can’t commit to remaining in one place for at least a few years, then owning is probably not for you, at least not yet. With the transaction costs of buying and selling a home, you may end up losing money if you sell any sooner – even in a rising market. When prices are falling, it’s an even worse proposition.

2. Start by shoring up your credit
Since you probably will need to get a mortgage to buy a house, you must make sure your credit history is as clean as possible. A few months before you start house hunting, get copies of your credit report. Make sure the facts are correct, and fix any problems you discover.

3. Choose carefully between points and rate
When picking a mortgage, you usually have the option of paying additional points- a portion of the interest that you pay at closing- in exchange for a lower interest rate. If you stay in the house for a long time- say three to five years or more- it’s usually a better deal to take the points. The lower interest rate will save you more in the long run.

4. Hire a home inspector
A home inspector can let you know if you’re about to buy a lemon of a house or warn you about potential problems. At best, you can move into the house confident that it’s in good shape; at worst, the inspector’s report can let you back out of the deal if the house has major, unexpected problems. Most typically, the home inspection can allow you to negotiate the home price to account for necessary repairs.

5. Get professional help
Even though the Internet gives buyers unprecedented access to home listings, most new buyers (and many more experienced ones) are better off using a professional agent. Look for an exclusive buyer agent, if possible, who will have your interests at heart and can help you with strategies during the bidding process.

6. Bonus Tip: Be patient
Buying a home is one of the largest purchases most people will make in their lifetime. The key to avoiding buyer’s remorse is to be completely comfortable before signing on the dotted line.

Floods: Recurrence intervals and 100-year floods

2010-05-24T09:17:00.000-07:00

Possibly you can remember when a really big rain, be it from a hurricane or a large frontal system, hit your town. If flood conditions occurred because of the rain then you might have heard the radio or TV weatherman say something like "This storm has resulted in a 100-year flood on Soandso River, which crested at a stage of 20 feet." Obviously, this means that the river reached a peak stage (height) that happens only once every 100 years, right? A hydrologist would answer "Well, not exactly." Hydrologists don't like to hear a term like "100-year flood" because, scientifically, it is a misinterpretation of terminology that leads to a misconception of what a 100-year flood really is.

Instead of the term "100-year flood" a hydrologist would rather describe this extreme hydrologic event as a flood having a 100-year recurrence interval. What this means is described in detail below, but a short explanation is that, according to historical data about rainfall and stream stage, the probability of Soandso River reaching a stage of 20 feet is once in 100 years. In other words, a flood of that magnitude has a 1 percent chance of happening in any year.

What is a recurrence interval?
"100-year floods can happen 2 years in a row" Statistical techniques, through a process called frequency analysis, are used to estimate the probability of the occurrence of a given precipitation event. The recurrence interval is based on the probability that the given event will be equalled or exceeded in any given year. For example, assume there is a 1 in 50 chance that 6.60 inches of rain will fall in a certain area in a 24-hour period during any given year. Thus, a rainfall total of 6.60 inches in a consecutive 24-hour period is said to have a 50-year recurrence interval. Likewise, using a frequency analysis (Interagency Advisory Committee on Water Data, 1982) there is a 1 in 100 chance that a streamflow of 15,000 cubic feet per second (ft3/s) will occur during any year at a certain streamflow-measurement site. Thus, a peak flow of 15,000 ft3/s at the site is said to have a 100-year recurrence interval. Rainfall recurrence intervals are based on both the magnitude and the duration of a rainfall event, whereas streamflow recurrence intervals are based solely on the magnitude of the annual peak flow.

Ten or more years of data are required to perform a frequency analysis for the determination of recurrence intervals. Of course, the more years of historical data the better—a hydrologist will have more confidence on an analysis of a river with 30 years of record than one based on 10 years of record.

Recurrence intervals for the annual peak streamflow at a given location change if there are significant changes in the flow patterns at that location, possibly caused by an impoundment or diversion of flow. The effects of development (conversion of land from forested or agricultural uses to commercial, residential, or industrial uses) on peak flows is generally much greater for low-recurrence interval floods than for high-recurrence interval floods, such as 25- 50- or 100-year floods. During these larger floods, the soil is saturated and does not have the capacity to absorb additional rainfall. Under these conditions, essentially all of the rain that falls, whether on paved surfaces or on saturated soil, runs off and becomes streamflow.

How can we have two "100-year floods" in less than two years?
Two 500-Year Floods Within 15 Years?
Bob Holmes, the National Flood Coordinator for the USGS, discusses this in a podcast.
(From the USGS CoreCast podcast and video series)

This question points out the importance of proper terminology. The term "100-year flood" is used in an attempt to simplify the definition of a flood that statistically has a 1-percent chance of occurring in any given year. Likewise, the term "100-year storm" is used to define a rainfall event that statistically has this same 1-percent chance of occurring. In other words, over the course of 1 million years, these events would be expected to occur 10,000 times. But, just because it rained 10 inches in one day last year doesn't mean it can't rain 10 inches in one day again this year.

Recurrence intervals and probabilities of occurences Recurrence interval, in years Probability of occurrence in any given year Percent chance of occurrence in any given year
100 1 in 100 1
50 1 in 50 2
25 1 in 25 4
10 1 in 10 10
5 1 in 5 20
2 1 in 2 50

Does a 100-year storm always cause a 100-year flood?
No. Several factors can independently influence the cause-and-effect relation between rainfall and streamflow.

Extent of rainfall in the watershed: When rainfall data are collected at a point within a stream basin, it is highly unlikely that this same amount of rainfall occurred uniformly throughout the entire basin. During intensely localized storms, rainfall amounts throughout the basin can differ greatly from the rainfall amount measured at the location of the rain gage. Some parts of the basin may even remain dry, supplying no additional runoff to the streamflow and lessening the impact of the storm.

Soil saturation before the storm: Existing conditions prior to the storm can influence the amount of stormwater runoff into the stream system. Dry soil allows greater infiltration of rainfall and reduces the amount of runoff entering the stream. Conversely, soil that is already wet from previous rains has a lower capacity for infiltration, allowing more runoff to enter the stream.

Relation between the size of the watershed and duration of the storm: Another factor to consider is the relation between the duration of the storm and the size of the stream basin in which the storm occurs. For example, a 100-year storm of 30-minutes duration in a 1-square-mile (mi2) basin will have a more significant effect on streamflow than the same storm in a 50-mi2 basin. Generally, streams with larger drainage areas require storms of longer duration for a significant increase in streamflow to occur. These and other factors determine whether or not a 100-year storm will produce a 100-year flood.

The 100-year flood level can change
Since the 100-year flood level is statistically computed using past, existing data, as more data comes in, the level of the 100-year flood will change (especially if a huge flood hits in the current year). As more data are collected, or when a river basin is altered in a way that affects the flow of water in the river, scientists re-evaluate the frequency of flooding. Dams and urban development are examples of some man-made changes in a basin that affect floods, as shown in the charts below.

Glossary of flood terms
Flood
A flood is any relatively high streamflow that overtops the natural or artificial banks of a river.
Discharge
Discharge is another term for streamflow; it is the measured volume of water that moves past a point in the river in a given amount of time. Discharge is usually expressed in cubic feet per second.
Cubic foot per second
One cubic foot per second (cfs) is about 450 gallons per minute. The average discharge of the Columbia River in September at The Dalles, Oregon, is about 120,000 cfs, which would fill the Seattle Kingdome in less than 10 minutes. The average discharge of the Puyallup River in September is about 1,700 cfs at Puyallup, Wash.
Floodplain
The floodplain is the relatively flat lowland that borders a river, usually dry but subject to flooding. Floodplain soils actually are former flood deposits.
The average number of years between floods of a certain size is the recurrence interval or return period. The actual number of years between floods of any given size varies a lot because of the naturally changing climate.
Recurrence interval
The average number of years between floods of a certain size is the recurrence interval or return period. The actual number of years between floods of any given size varies a lot because of the naturally changing climate
Hydrograph
A hydrograph is a graph that shows changes in discharge or river stage over time. The time scale may be in minutes, hours, days, months, years, or decades.
River stage
The river stage is the height of the water in the river, measured relative to an arbitrary fixed point.
What about a 100-year drought?
Undoubtedly, a 100-year flood occurrence can have a significant and lasting impact on every aspect of the local environment. If streamflow statistics define what a 100-year flood is, do you think similar statistics could define the opposite event – a 50- or 100-year drought? Certainly it can. And, although a drought doesn't have the immediate and devastating impact that a flood has, it can still have severe effects on the local environment just as a flood does (only it is drawn out over a longer time period). As an example, read about the severe drought in Maine in 1999-2000, or the Utah drought of 1999-2002.

Home Prices Rising in More Metro Areas, First Quarter Sales Up From a Year Ago

2010-05-21T09:05:00.000-07:00

A growing number of metropolitan areas are experiencing price gains from a year ago, while most states have seen healthy gains in home sales from the first quarter of 2009, according to the latest survey by the National Association of Realtors®.

In the first quarter, 91 out of 152 metropolitan statistical areas1 showed higher median existing single-family home prices in comparison with the first quarter of 2009, including 29 with double-digit increases; three were unchanged and 58 metros had price declines. In the fourth quarter 67 areas reported gains and 123 were down, while only 30 MSAs in third quarter of 2009 showed annual price increases.

The national median existing single-family price was fairly flat at $166,100, down 0.7 percent from the first quarter 2009 price of $167,300. The median is where half sold for more and half sold for less. Distressed homes, which typically are discounted by 15 percent relative to traditional homes, accounted for 36 percent of first quarter sales.

Lawrence Yun, NAR chief economist, said stabilizing home prices are encouraging. “This flattening in home prices is something we’ve been seeing in all of the home price measures lately, and quite clearly in this metro area price report,” he said. “The tax credit has been very effective in drawing down excess inventory, with about one million additional sales resulting directly from the stimulus.”

Total state existing-home sales, including single-family and condo, were at a seasonally adjusted annual rate2 of 5.14 million in the first quarter, down 14.0 percent from a surge of 5.97 million in the fourth quarter, which was driven by the initial tax credit. However, first quarter sales remain 11.4 percent above the 4.61 million-unit level in the first quarter of 2009. “Year-ago comparisons are more meaningful in this report due to sales swings from the tax credit,” Yun said.

Sales increased from a year ago in 44 states and the District of Columbia; 31 states and D.C. saw double-digit gains while two were unchanged and four were down.

NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz., said there’s been a change in market psychology. “Buyer confidence is back, and home buyers have long-term views. The typical buyer plans to stay in their home for 10 years, so we’ve put the flipping mentality behind us and most people see housing for what it is – shelter that provides social benefits and is also a good long-term investment,” Golder said.

According to Freddie Mac, the national average commitment rate on a 30-year conventional fixed-rate mortgage was 5.00 percent in the first quarter, up slightly from a record low 4.92 percent in the fourth quarter; it was 5.06 percent in the first quarter of 2009.

Golder said even with some recent easing of mortgage credit, separate surveys3 show the housing market continues to be constrained by mortgage issues. “One-third of NAR members report the most important factor limiting potential clients has been difficulty in obtaining a mortgage,” she said.

“In addition, 11 percent of Realtors® in the first quarter report a contract was cancelled because an appraisal came in less than the price negotiated between a buyer and seller, and another 16 percent report a contract had to be renegotiated because of a low appraisal,” Golder said. “As a result, the housing recovery isn’t as strong as it could be. We are discussing these and other concerns with government and industry leaders at a real estate summit currently under way here in Washington.” The three-day summit began today at the Realtors® Midyear Legislative Meetings & Trade Expo.

In the condo sector, metro area condominium and cooperative prices – covering changes in 55 metro areas – showed the national median existing-condo price was essentially unchanged at $170,700 in the first quarter, down 0.1 percent from the first quarter of 2009. Twenty-four metros showed increases in the median condo price from a year earlier and 31 areas had declines; in the fourth quarter 11 metros were up, and only four metros experienced annual price gains in third quarter of 2009.

Yun said there were solid single-family price gains in a variety of metro areas. “We see double-digit price increases in the San Francisco Bay region, and in smaller metros in the Northeast,” he said. “Price gains in some Midwestern markets are not very meaningful because of comparisons to very high levels of distressed homes that were sold at huge discounts a year ago.”

Regionally, the median existing single-family home price in the Northeast rose 9.0 percent to $256,300 in the first quarter from the same quarter in 2009. Existing-home sales in the Northeast fell 17.7 percent in the first quarter to a level of 850,000 but are 19.7 percent higher than a year ago.

In the Midwest, the median existing single-family home price slipped 0.8 percent to $130,600 in the first quarter from a year ago. Existing-home sales in the Midwest dropped 17.3 percent in the first quarter to a pace of 1.13 million but are 10.8 percent above the first quarter of 2009.

In the South, the median existing single-family home price was $148,200 in the first quarter, up 1.1 percent from the first quarter of 2009. Existing-home sales in the South fell 14.6 percent in the first quarter to an annual rate of 1.89 million but are 10.7 percent higher than a year ago.

The median existing single-family home price in the West was $210,200 in the first quarter, which is 8.3 percent below a year ago. Existing-home sales in the West declined 6.8 percent in the first quarter to an annual rate of 1.27 million but are 8.3 percent higher than the first quarter of 2009.

Housing Starts Rise 5.8 Percent in April 2010

2010-05-20T10:46:00.000-07:00

Nationwide housing starts rose 5.8% to a seasonally adjusted annual rate of 672,000 units in April 2010 as the deadline for an important home buyer tax incentive arrived, according to figures released by the U.S. Commerce Department.

“While some of the starts activity noted in the report reflected homes for which buyers had just signed a contract at the tail-end of the tax credit program, the rest was probably tied to builders replenishing their inventories in preparation for the post-tax credit era,” said Bob Jones, Chairman of the National Association of Home Builders (NAHB) and a home builder from Bloomfield Hills, Mich. “That said, builders are maintaining a cautious attitude with regard to new building as the economy and housing markets slowly recover.”

“The government’s latest numbers indicate that production of new single-family homes got a substantial boost in April as the tax credit program wrapped up and builders worked to resupply their depleted inventories,” agreed NAHB Chief Economist David Crowe. “As our latest surveys have indicated, builders are anticipating that factors such as low mortgage rates, attractive prices and the recovering employment market will replace the tax credit as incentives to buy. Meanwhile, the drop-off in building permits in April indicates that builders are working down the inventory of permits pulled in the previous month and taking care not to get ahead of the market. Builders also continue facing difficulty in obtaining project financing, which will limit the pace of a housing recovery.”

Single-family housing starts surged 10.2% to a seasonally adjusted annual rate of 593,000 units in April, the strongest rate since August of 2008. Meanwhile, multifamily starts posted an 18.6% decline to a 79,000-unit rate, offsetting a big gain posted by that sector in the previous month.

Permit issuance, which can be an indicator of future building activity, declined 11.5% overall to a seasonally adjusted annual rate of 606,000 units in April. This reflected a 10.7% decline to a 484,000-unit rate on the single-family side and a 14.7% decline to a 122,000-unit rate on the multifamily side.

Three out of four regions posted solid gains in new housing production in April. Combined single- and multifamily starts rose 23.9% in the Northeast, 16.7% in the Midwest and 7% in the South. The West registered a 13.3% decline.

Conversely, permit issuance was down in three out of four regions in April. The Northeast posted a 7.4% decline, the South registered a 14.3% decline and the West posted a 16% decline. Permit issuance remained unchanged from the previous month in the Midwest.

Restaurant Wednesday

2010-05-19T10:05:00.000-07:00

Tin Angel

A classic neighborhood restaurant featuring modern french cuising based in classic ideas and using the highest quality ingredients. Since 1993, Tin Angel offers the convivial convergence of diners and staff in a warm atmosphere.

location
3201 West End Ave
Nashville

615.298.3444
tinangel.net

FHA Plays Vital Mortgage Finance Role, but Private Sector Must Return

2010-05-18T09:56:00.000-07:00

Washington, May 13, 2010

The Federal Housing Administration plays a key role in today’s housing market, but changes are necessary to support recovery in the real estate market and general economy. That was the focus of today’s “Restoring the Balance of Public and Private Capital in Mortgage Finance” session, part of a three-day summit during the Realtors® Midyear Legislative Meetings & Trade Expo here this week.

“Realtors® are working to reshape real estate in America, and FHA’s role and prominence have shifted significantly over the past few years,” said National Association of Realtors® President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz. “Many first-time home buyers rely on FHA loans to purchase a home, and because of its vital role in helping families achieve the dream of homeownership, FHA must be strengthened and supported. At the same time, private financing must also return to support a full recovery.”

In 2009, more than 50 percent of first-time buyers used FHA to finance their home purchase, and nearly 80 percent of FHA’s purchase loans were to first-time home buyers. FHA also serves those who need to refinance out of risky adjustable-rate mortgages or subprime loans with high interest rates. In 2009, approximately 835,000 borrowers refinanced into lower interest rate FHA-insured loans, saving them an estimated $1.3 billion.

Vicki Bott, deputy assistant secretary for Single Family Housing, U.S. Department of Housing and Urban Development, acknowledged FHA’s current significance in mortgage financing. “FHA has become a vibrant part of the market, but our goal is not to build market share, nor is it to retract from the market. We need to support the housing market, but we also support improving market liquidity and bringing private involvement back to the market,” she said.

Bott joined panelists Steve Adamo, president and CEO, Weichert Financial Services; Scott Griffith, ERA Griffith Realty; and David Katkov, president and EVP, PMI Mortgage Insurance Co. Realtors® voiced their concerns with current lending challenges, including limited liquidity in the resort and second-home market and appraisal concerns related to the Home Valuation Code of Conduct. Panelists acknowledged there was still progress to be made, but that FHA had played a valuable role in averting larger problems.

“Thank God FHA was there,” said Katkov. “FHA stepped in, as they should, but as the market heals, the balance should be restored.” Katkov described an ideal mortgage insurance balance as 50-60 percent private sector, 35 percent FHA, with the remaining portion covered by loans guaranteed by the Veterans Administration.

“As the leading advocate for homeownership, NAR strongly supports FHA’s single- and multifamily mortgage insurance programs,” said Golder. “Yesterday, Realtors® visited Capitol Hill to tell Congress to strengthen FHA while still allowing for access to safe, affordable financing by responsible borrowers, and to make the higher loan limits permanent to prevent dramatic decreases in the availability of affordable, safe financing nationwide.”

Decreasing the current loan limits would reduce the availability of mortgages in 612 counties in 40 states, plus the District of Columbia. The resulting average limit reduction of more than $50,000 would have a dramatic impact on liquidity and could halt the housing recovery, according to NAR.

Bank of America Reports More Than 56,000 Permanent Home Affordable Modifications, among More Than 600,000 Total Modifications Since January 2008

2010-05-17T08:56:00.000-07:00

Bank of America has completed about 56,400 permanent mortgage modifications under the federal government’s Home Affordable Modification Program (HAMP), and has now completed a total of more than 600,000 modifications through all available programs since January 2008, the company reports.

“We were able to convert close to 24,000 Bank of America customers from trial to permanent modifications in the past month, completing the process for more homeowners than in any previous month,” said Jack Schakett, credit loss mitigation strategies executive for Bank of America Home Loans.

“We continue to evaluate homeowners’ eligibility and activate trial modifications while focusing on completing as many permanent modifications as possible for those who have successfully completed their trial payment period. At the same time, however, we are beginning to see a decrease in the number of active trial modifications, which we have anticipated.”

In part, this reflects successful conversions to completed modifications and implementation of new government requirements for documentation of financial information before a borrower can enter the trial modification period, which will slow the inflow of new trial modifications.

In addition, as required by government guidelines, Bank of America is notifying customers who did not meet eligibility requirements for HAMP or who did not meet the requirements of their trial period plan that they are not eligible to complete a permanent HAMP modification. The bank is in the process of mailing letters to thousands of these customers.

“We are letting customers know that we may explore other homeownership retention options, depending on individual circumstances and investor guidelines,” Schakett noted.

Bank of America has completed nearly 550,000 modifications outside of HAMP since January 2008, more than 59,000 of them in the first four months of this year. All told, through HAMP and non-HAMP solutions, Bank of America has completed more than 605,000 modifications since January 2008, including 115,000 this year.

If all homeownership retention solutions have been exhausted, a short sale or deed-in-lieu may help the customer avoid the more severe negative impacts of foreclosure.

Bank of America continues to support and lead in implementation of all facets of the government’s Making Home Affordable initiative.

– The first offers under the new second lien modification program (2MP) were mailed on April 1, within days of the Department of Treasury issuing the program guidelines. Bank of America was the first servicer to sign an agreement to participate in 2MP in January, giving it a head start toward early implementation.

– Bank of America became operational in the Home Affordable Foreclosure Avoidance (HAFA) program in April. The program provides a streamlined, cooperative and encouraging approach to move homeowners who have been found to be ineligible for a HAMP modification into the short sale or deed-in-lieu process.

– Bank of America continues to lead the industry in refinancing loans through the Home Affordable Refinancing Program (HARP) with more than 200,000 mortgages refinanced. More than 110,000 of these mortgages have loan balances exceeding 80 percent of the property value and otherwise may be difficult to refinance in today’s tight credit markets.

In the first quarter of this year, Bank of America loaned $70 billion to 320,000 customers to purchase a home or refinance their existing first mortgage.

Implementation of recently announced enhancements to Bank of America’s National Homeownership Retention Programs will begin soon. The innovative earned principal forgiveness approach, announced in March, targets types of loans that have demonstrated the highest risk of default by using principal reduction as the first step toward reaching an affordable payment through modification. Bank of America is completing plans to align this program with features of a similar earned principal forgiveness plan recently announced by the Department of Treasury as part of HAMP, ahead of broader implementation of the government program in the coming months.

Flood Repair Information

2010-05-14T07:36:00.000-07:00

May 2010
DEPARTMENT OF CODES AND BUILDING SAFETY
FLOOD RECOVERY INFORMATION
GUIDELINES FOR PERMITS
ASSOCIATED WITH THE REPAIR OF
FLOOD DAMAGED HOMES AND BUILDINGS

The Department of Codes and Building Safety urges you to use extreme caution when re-entering any residence that has been submerged or water damaged during flooding. See our guidelines for Safety Precautions For Residents Returning To Flood Homes.
A building permit is required prior to making repairs to flood damaged homes and buildings.

While building permits are not required for ordinary maintenance and repairs . . . the repair of a flood damaged home or building is far from ‘ordinary’.
While there are no permits required to do the “demolition” and “clean-up” associated with the project (the removal of drywall and damaged carpet, doors, etc.), a building permit is required prior to installation of the drywall and prior to repair of any electrical, plumbing, or mechanical (HVAC) system damage.

How does a building permit benefit the Homeowner?
In a word: SAFETY. A building permit and the inspections that accompany a permit protect you, your family and guests, and future owners. It protects your neighbor. It protects your contractor. It protects the city. Evidence of permits and inspections may be required in an insurance claim or property sale. All of this adds up to a protection of your property's value.

Who can obtain Building Permits?
A property owner who presently occupies or intends to occupy a single-family residence or a licensed contractor may obtain a building permit to construct or repair a residence. A property owner or tenaa commercial property can obtain a building permit to construct or repair a building for up to $25,000, over that amount will require a licensed general contractor

Below are some guidelines to help understand the process for permitting repairs for flood damaged buildings or structures.

• You or your contractor will need to come to the Department of Codes Administration, 3rd Floor of the Metro Office Building, 800 Second Avenue, South to apply for the building permit. Permit Division 615 862-6517.

• At the time of application you must have the name of the property owner, proper street address and/or the tax map and parcel number to insure proper identification of the property.

• When you arrive at the Department of Codes Administration you will sign in to see a Zoning Examiner.

• The Zoning Examiner will enter the permit application information in the computer.

• Some applications may require approvals from other departments such as the Department of Water Services (for assistance with flood plain and stormwater issues and to ensure compliance with FEMA requirements). When this occurs the Zoning Examiners will act as your counselor, providing you with information and a check list that will aid you in obtaining these approvals.

• Once you have obtained all the required approvals, your last step is to visit the Customer Service person where you initially signed in. They will direct you to a permit clerk where you pay for and receive your building permit.

• The permit clerk will also include a checklist of the inspections you are required to have made during construction. At the appropriate stages of construction, request the proper inspections. An inspector will meet you on site and inspect the work. The inspector will either approve the work or explain the changes you need to make to attain approval. When you complete the work the inspectors will give you an approval. This indicates that the work inspected passed inspection. At the end of your project you should have a final approval for all of the phases of your project, these include but are not limited to Building, Mechanical, and Electrical.
The repair and inspection sequence for flood damaged properties:

• Now that you have your building permit, the next step is to secure the services of a licensed electrical contractor and a licensed HVAC contractor to inspect electrical and HVAC equipment which may have been submerged in flood waters.

• Do not install drywall or cover the electrical or HVAC systems until the following has been completed:

• The licensed electrical and HVAC contractors will obtain electrical and HVAC permits associated with the repair and replacement of any submerged electrical, HVAC systems or any part thereof. The licensed contractors will complete their work and call Codes for inspections and approvals.

• After the Electrical and Mechanical work has been inspected, insulation must be installed in the exterior walls and floors to meet the requirements of the adopted energy codes. Walls must be insulated with R-13, and floors must be insulated with R-19.

• After installing insulation and before hanging the drywall, you will call the Codes Department’s Building Inspection Division (862-6550) and request a “framing inspection”. Upon receiving our approval of the framing inspection, you are then free to hang the drywall and complete the remainder of the repairs.
Special warning regarding homeowner repair permits:
When a licensed contractor obtains a building permit, the contractor is totally responsible for the construction (including the work performed by subcontractors) to meet all codes. If the construction fails to comply with all codes, their permit bond can be used to repair the code violation.
When an owner obtains his or her own building permit, he or she becomes totally responsible for the code compliance of the construction project includsubcontractors and not the contractor – even if a contractor is hired and the construction does not comply with all codes.

If you have hired the services of a contractor, have the contractor obtain the building permit.

HOMEOWNER GUIDELINES FOR ADDRESSING MOLD

• Be aware that mold might be present if your house was flooded.
• Wet items such as furniture and rugs should be taken outside to dry out.
• Remove all drywall that has been submerged.
• Use fans and dehumidifiers to remove excess moisture from your home. Fans should be placed at a window or door to blow the air outwards rather than inwards, so not to spread the mold.
• To remove or prevent mold growth from hard surfaces use commercial products, soap and water, or a bleach solution of 1 cup of bleach in 1 gallon of water.

GUIDELINES FOR REPAIR OF ELECTRICAL SYSTEMS
EXPOSED TO FLOOD WATER

If your electrical system, or parts of your electrical system not rated for wet locations, have been flooded and your electricity has been cut off, to have NES to reconnect your power you must:

• Have a licensed electrical contractor come inspect your electrical system.
• If the electrical contractor finds your system is ok to re-energize, he will call for a service release permit, this will trigger us to send an inspector to meet the contractor at your residence/building. If the system passes inspection, we will notify NES to reconnect the power.
• If the main service is acceptable but a part of the distribution system is not acceptable (such as a circuit feeding lights or outlets), we will allow the electrical contractor to disconnect the unacceptable portion of the system and we will ask NES to reconnect the electrical service to the residence/building.
• The electrical contractor shall then obtain an electrical permit to repair the unacceptable part of the system.
• When repairs are completed the contractor will call for an inspection. If the remaining portion of the system passes inspection, then it may be connected to the energized part of the system by the contractor.
2. All parts of an electrical system (including all electrical devices, outlet, switches, equipment and some wiring) not rated for wet locations, which have been submerged in flood waters will have to be replaced by a licensed electrical contractor. Old fabric coated wiring, knob & tube type wiring or any other submerged wiring that is in poor physical condition must be replaced. However, if the romex wiring (NM cable) is modern plastic sheathed and in good shape, we will allow it to remain. Repair or reconditioning of electrical equipment should only be attempted when in direct consultation with and following instructions from the equipment manufacturer.
3. For more information on reenergizing flood damaged electrical systems see the guidebook “Evaluating Water Damaged Electrical Equipment” provided by the National Electrical Manufacturers Association (NEMA). www.nema.org
Electrical Information 615 862-6560

GUIDELINES FOR WATER HEATERS
EXPOSED TO FLOOD WATERS

The Department of Codes and Building Safety urges you to use extreme caution when restarting any Water Heating Equipment that has been submerged or water damaged during flooding. Prior to re-starting any equipment you should have a licensed Plumbing or Mechanical contractor inspect the equipment. Generally the replacement of a residential 50-gallon water heater does not require a permit. It would require a permit if you were to replace the water heater and change the fuel type (example: going from electric to gas or from gas to electric).
Whether a water heater uses gas, or electricity, if it was exposed to flood water,
the unit must be replaced.

AHRI has provided reasons why it is required to replace water heaters which have been exposed to flood waters.

• A new water heater is a relatively small investment, and replacing it is fairly easy to do. If the water heater was more than five years old, the chances are good that a new unit will be more efficient, which will save the homeowner money.
• In a gas unit, valves and controls can corrode and cause it to malfunction. In an electric unit, the thermostat and controls can corrode and cause malfunction.
• In both types, the insulation surrounding the unit will likely be contaminated and will be nearly impossible to disinfect. In addition, the insulation takes a great deal of time to dry and can lead to corrosion of the tank from the outside. Even if water heater components have been cleaned and the unit seems to operate properly, parts may corrode in the future and create a very hazardous condition.
• Both gas and electric water heaters have a pressure relief valve that can corrode and stick after being exposed to flood water. This is a very hazardous condition
•

The Air Conditioning, Heating, and Refrigeration Institute (AHRI) is the trade association which represents manufacturers of air conditioning, heating and commercial refrigeration equipment. For more information visit the following website
http://www.ahrinet.org
Plumbing Information 615 862-6570
Mechanical Information 615 862-6570

GUIDELINES FOR RE-STARTING WATER DAMAGED
HEATING AND COOLING EQUIPMENT

The Department of Codes and Building Safety urges you to use extreme caution when restarting any Heating or Cooling Equipment that has been submerged or water damaged during flooding. Prior to re-starting any equipment you should have a licensed Mechanical contractor inspect the equipment and clean, repair, or replace as necessary prior to putting back in use.
Below are some guidelines to help determine if replacement is the better choice than repair.

NOTICE:
The repair or reconditioning of heating and cooling equipment should only be considered when in direct contact with the equipment manufacturer and following the instructions of the manufacturer.
The Air Conditioning, Heating, and Refrigeration Institute (AHRI) has compiled a list of heating and cooling equipment for homeowners to consider replacing if flood damaged:

Gas Furnaces and Boilers: If there is any question whether flood water has reached a gas furnace or boiler, it should be checked by a qualified contractor. This equipment has gas valves and controls that are especially vulnerable to water damage from floods damage that might not be visible. Corrosion begins inside the valves and controls, and damage may not be apparent, even if the outside of the device is clean and dry. At a minimum, this damage can result in reliability problems and are potentially very hazardous. Gas equipment and appliances which have been submerged in flood waters must be replaced for reliability and safety.
Electric Furnaces: An electric furnace consists of electrically heated coils, a fan to provide air circulation across the coils, and controls that include safety relays. As with a gas furnace, an electric furnace is susceptible to corrosion and damage from flood water, creating potential reliability problems or safety hazards. If there is any question whether flood water has reached an electric furnace, homeowners should have it checked by a contractor.
Propane Heating: Use extreme caution where there is the potential for propane leaks and have propane equipment checked, re-paired and/or replaced by a contractor as quickly as possible after a flood. In every case, contractors must replace all valves and controls that have been in contact with flood water. The gas pressure regulator on a propane system should also be checked. This regulator contains a small vent hole to sense outside pressure. For effective gas pressure regulation, this hole must always remain unobstructed. During a flood, debris can easily plug the hole, causing dangerous malfunction or corrosion. Propane equipment and appliances which have been submerged in flood waters must be replaced for reliability and safety.

Radiant Floor Heat: With this type of heating system, electrically heated cables or tubing circulating a fluid are embedded underneath or within the flooring material. The cables warm the floor, which in turn warms the room by radiant heat. If the floor becomes wet from a flood, it can weaken and perhaps crack and may need replacement. Both electrical cables and tubing can be damaged due to a wet floor. Therefore, a qualified professional should be consulted to determine whether the system can continue to be used.

Heat Pumps and Air Conditioning Systems: Split air conditioning and heat pump systems have power and control wiring between the indoor and outdoor parts of the system, and piping through which refrigerant flows through the system. If flood water has repositioned either the indoor or outdoor units of a split system even by a small amount, there is a potential for refrigerant leaks. The system will then require major repair or full replacement. If the refrigerant system remains intact after the flood, the entire system should be cleaned, dried and disinfected. Homeowners should have a contractor check the indoor and outdoor units' electrical and refrigeration connections, including all control circuits. The decision to repair or replace should be made after consultation with a qualified professional on a case by case basis.

Ductwork: If a house under storm repair contains a central forced air system, attention should also be paid to the ductwork. A contractor will not try to salvage duct insulation that has been in contact with flood water, but will replace it because it is impossible to decontaminate. New duct insulation shall provide an R=8. The contractor also will clean, dry and disinfect the ductwork itself. A thorough job will require disassembling the duct-work, but
the silver lining is that such repairs will allow the contractor to seal joints in the ductwork and improve insulation to reduce heat and cooling loss.
The Air Conditioning, Heating, and Refrigeration Institute (AHRI) is the trade association which represents manufacturers of air conditioning, heating and commercial refrigeration equipment. For more information visit the following website http://www.ahrinet.org
Mechanical Information 615 862-6570

For volunteer assistance and access to helpful resources call Hands on Nashville 615 298-1108.
To apply for Federal Disaster Assistance call FEMA at 1-800-621-3362 or hearing impaired 1-800- 462-7585.
Important Codes Department Telephone Numbers:
Permit Division — 862-6517
Zoning Review—862-6510
Plans Review — 862-6540
Building Division — 862-6550
Electrical Division — 862-6560
Gas/Mechanical Division — 862-6570
Department of Codes and Building Safety
800 2nd Avenue, South
Nashville, TN 37210
615 862-6500

Keller Williams Red Day-Giving Where We Live

2010-05-12T16:28:00.000-07:00

What is RED Day?

RED (Renew, Energize and Donate) Day is a Keller Williams Realty service initiative dedicated to improving our local communities. All Keller Williams Realty associates in the United States and Canada were asked to donate their time on May 13, 2010 to renewing and energizing aspects of their local communities. Because of her constant commitment to the culture of our company, this day has been dedicated in honor of our Vice Chairman, Mo Anderson.

A letter from Mo Anderson, thanking all participants of Red Day 2009:
Dearest KW Family,

I cannot begin to express my heartfelt gratitude for honoring my 72nd Birthday with RED Day!

Last week, our Family joined together in a day of international service to others. You have set a standard of charity, love, and commitment in each of your communities. We may never know the true value and impact of this incredible gift that is a result of our culture and our unity.

My eyes are filled with tears of joy and my heart is filled with loving pride as I read your letters, learn your stories, see your photographs, and watch your videos sharing the amazing work you have done in your neighborhoods across North America. Homes have been rehabilitated. Hungry families have been fed. The elderly have received our time, care and respect. Our cities have been beautified. More acts of kindness have been given to others than can be named here.

John Maxwell says, "People do not care how much you know until they know how much you care." Because you have opened your hearts, the world knows how much Keller Williams cares about the communities we live in. Your blessing to others is immeasurable.

Thank you for giving your time and energy to those in need. You have not only changed your community and your Market Center, but you have changed the industry! Thank you for living our Culture in action!

I have never received a gift greater than this.

Bless you,

Mo Anderson
Vice Chairman of the Board
Keller Williams Realty International

Restaurant Wednesday

2010-05-12T08:50:00.000-07:00

Provence Breads and Cafe opened its doors in 1996 with the goal of baking the finest quality artisan breads and pastries in Nashville. Every single item they produce is baked from scratch using the finest ingredients available.

locations:

Hillsboro Village
1705 21st Ave South
Nashville
615.386.0363

Downtown
601 Church Street
Nashville
615.664.1150

Green Hills
4031 Hillsboro Pike
Nashville
615.385.1400

Tax Relief for Flood Victims

2010-05-11T11:10:00.000-07:00

As you are probably aware by now, President Obama declared several Tennessee counties (Cheatham, Davidson, Dyer, Hickman, McNairy, Montgomery,Perry,Shelby, Tipton and Williamson) as disaster areas.

The IRS issued the following press release yesterday highlighting some of the tax benefits associated with the disaster area designation. A provision of particular note for those of you who were impacted directly by the flooding, or with friends and/or family who were impacted by the flooding, is the opportunity to claim disaster losses incurred in 2010 on an amended 2009 tax return. Since most storm victims didn’t carry flood insurance, the opportunity to claim their losses on an amended 2009 tax return is one of the few ways they can recoup their uninsured financial losses. Congress is in the process of crafting legislation that would extend several tax benefits that expired at the end of 2009 including the favorable casualty loss provisions.

Congressional leaders made comments yesterday that they hope to pass this legislation before the Memorial Day break so it’s possible that the more favorable casualty loss provisions that expired at the end of 2009 will be extended into 2010.

'We Are Nashville' blog unites city

2010-05-10T09:02:00.000-07:00

With 13,000 Facebook fans and T-shirts to aid flood victims, "We Are Nashville" has turned into a rallying cry for a city facing massive cleanup and rebuilding efforts after a devastating flood.

But the phrase began as a simple post on the local Nashville Predators-centric Section 303 blog.

"Not in one of my wildest dreams did I think it'd turn into something this big," said native Nashvillian and hockey blogger Patten Fuqua, who first published the missive May 4 on the site.

The opinion piece praised the city's self-sufficiency during the flood, observing how neighbors were helping neighbors without the glare of the national media spotlight. The piece concluded, "We now know that it can happen to us . . . but also know that we can handle it. Because we are Nashville."

"I'd originally planned to come on and write a season review. And then the flood happened. So I thought, 'Hey, this is kind of like hockey games when you rally people around you. You do whatever you can to get that energy up,' " Fuqua said.

Eric Shuff, social media director for The Tennessean, started a We Are Nashville page on Facebook, with Fuqua's blessing, after a friend suggested it on Twitter.

Later, Sam Davidson and Stephen Moseley, founders of Cool People Care, a Nashville-based company that provides organic T-shirts for philanthropic causes, picked up the motto and fashioned it onto T-shirts and bumper stickers. Proceeds from the sales go to the Community Foundation of Middle Tennessee's Flood Relief Fund.

"We connect people who make a difference in the local community. This blog post did that by becoming a rallying cry for the city," Davidson said. "We knew we could help just by doing something we do every day."

That was working with T-shirt printers, suppliers and retailers to get cash flowing in for various causes.

Local designer Rob Williams created the "We Are Nashville" lettering based on a wavy pattern, a slight nod to the water that inundated the city.

"The major thing is we had the word 'Nashville' underneath the main design that kind of showed a support or strength," he said of his design.

The shirts were selling briskly until CNN journalist Anderson Cooper held one up before the television cameras when his news show visited Nashville to report on the aftermath of the flood.

And that's when demand exploded.

"The next thing I know, we were getting so many orders that it crashed our website. We were getting four orders a minute," Davidson said.

So far, 3,500 T-shirts have gone to folks in 48 states and several countries and raised $25,000 for the nonprofit's fund.

Nashville Clothing Co. will be the first retailer to carry the We Are Nashville T-shirts in its stores, starting on Thursday. But orders also are accepted online at www.coolpeoplecare.org.

Fine Living Group Gives Back

2010-05-06T10:41:00.000-07:00

Hello All,

WIth the current devastation in Nashville, we at the Fine Living Group of Nashville want to give back. For every fan we get to sign up, our group will donate $1 to The Nashville Red Cross. Please share with your friends, and if you would like to donate, please contact the Nashville Red Cross. To become a fan; please visit our facebook page Fine Living Group Gives Back. Thanks!

Country Stars Take Stock After Nashville Flood

2010-05-06T10:36:00.000-07:00

As the water recedes and Nashville recovers from the devastating flooding that occurred when the Cumberland River became swollen from a weekend’s worth of thunderstorms, many of the city’s best-known musicians are assessing the damage to their property and making plans to help it get back on its feet. The country star Brad Paisley told The Associated Press that much of the staging and props for his coming concerts – called the H2O tour – were underwater during the floods, and that most of his guitars, amps and equipment had been destroyed. Ben Jumper, the owner of a storage facility called Soundcheck Nashville, where Mr. Paisley and other musicians kept their gear, said he expected his losses from the flood would amount to tens of millions of dollars. A publicist for Kenny Chesney told The A.P. that the musician’s home would probably be condemned after water rose above its first floor.

Vince Gill announced on his Web site that he would host a telethon on Thursday evening to benefit flood-relief charities. The telethon, to be shown on Nashville’s WSMV-TV Channel 4 and called “Working 4 You: Flood Relief with Vince Gill & Friends,” will run from 7 p.m. to 10 p.m. Central time, and will be streamed live on WSMV.com.

Tennessee digs out from deadly flooding

2010-05-05T09:19:00.000-07:00

* Nearly 1,000 people in emergency shelters in Tennessee

NASHVILLE, Tenn., May 5 (Reuters) - Residents and volunteers in Nashville on Wednesday dug through ruined possessions, mud and debris inundating flood-hit homes and businesses, with the recovery from deadly weekend storms hampered by power outages.

The overflowing Cumberland River and its tributaries were gradually retreating, but flood waters that submerged part of Nashville's downtown and forced evacuations across the region have caused billions of dollars in losses, officials said.

President Barack Obama granted the state's request for disaster relief in four counties, with more areas likely to receive federal help.

The weekend storms and flash floods were blamed for 20 deaths in Tennessee and 10 more in neighboring Kentucky and Mississippi.

Tennessee officials warned more victims may be discovered as the flood waters recede.

Nearly 1,000 people in Tennessee were living in emergency shelters, according to the Red Cross, and 10,000 were without power.

Nashville's downtown area near the Cumberland River as well as a Metro Center business area lacked electricity, and several tourist attractions in the capital of country music suffered serious damage.

Nashville officials pleaded with residents to conserve water as the city was relying on a single water treatment plant that sandbags had barely spared from the flooding.

A scheduled performance Tuesday night at the Grand Ole Opry was moved to the downtown War Memorial Building, where Senator Lamar Alexander performed "Tennessee Waltz" on piano. Among the country stars on hand was Jeannie Seely, who lost her home to the flood and had to borrow shoes.

"Well, you can laugh about it or cry and I don't want to cry," Seely told the audience.

Power out in core of downtown Nashville

2010-05-04T10:42:00.000-07:00

A large swath of downtown businesses, from the honky tonks on Broadway to the AT&T building that marks Nashville’s skyline, are without power this morning and likely to remain dark until Friday following further damage from flood waters.

Nashville Electric Service’s substation on Demonbreun Street lost its remaining circuits at about 3:15 a.m. today due to water flooding transformers housed in underground vaults, spokeswoman Laurie Parker said. The area runs from Demonbreun to Commerce Street, and from Fifth Avenue — all the way to Bridgestone Arena — to the Cumberland River.

NES is unable to pump the water out or safely reactivate its lines until the flood waters recede, Parker said.

“It’s a mess,” she said. “It’s a waiting game to see how long it takes for the water to recede to energize those lines.”

The numerous businesses and other buildings join such structures as The Pinnacle at Symphony Place, which NES already powered down to prevent an electrical fire or other complications, she said.

NES has 54 crews working on power outages, which affected 3,500 customers as of Tuesday morning, the Metro Emergency Operations Center said.

Read more: Power out in core of downtown Nashville - Nashville Business Journal:

Massive flooding hits Nashville

2010-05-03T09:00:00.000-07:00

Thousands of Middle Tennessee homeowners and business owners will spend this week working to recover from a weekend of widespread flooding that came as the result of two days of record-setting rainfall in Nashville.

The National Weather Service reported that Saturday and Sunday's rainfall totals were 13.57 inches at the Nashville International Airport — more than doubling the previous two-day record rainfall of 6.68 inches set in September 1979. As of May 3, the month already was the fifth-wettest month on record for Nashville.

The Cumberland River, already above flood level, is expected to crest at 51.5 feet today, according to officials with the Mayor’s Office of Emergency Management.

The National Weather Service advises major flooding is expected to continue along the river on Monday, followed by a gradual decrease in water levels with the river falling below flood stage late Tuesday night.

Several area communities, including Franklin and Bellevue, were among the hardest hit. 11 deaths were blamed on the weekend's storms.

Other areas were being evacuated because of rising floodwaters. The Riverfront and First Avenue, Metro Center in North Nashville, and Opryland areas have been evacuated. First Avenue and Metro Center will remain closed until Cumberland River levels stabilize and begin to recede.

Travel was disrupted heavily over the weekend as the water engulfed several interstates around Nashville, and many flights were canceled flying out of BNA Sunday.

Please visit nashvillebusinessjournal.com throughout the day for more updates.

Restructuring the Financial Markets: An Update on Lending

2010-04-30T07:52:00.000-07:00

While there are varying opinions about the current state of the economy, one thing is for certain—continued growth depends heavily on loan availability for every qualified buyer. The National Association of Realtors (NAR) is pushing heavily to ensure the flow of capital continues into the housing and mortgage markets. In this month’s Power Broker Roundtable, industry leaders James Weichert, Jr. and Gino Blefari discuss where we stand on the issue of restructuring the financial markets.

Moderator:
Steve Brown, Special Liaison for Large Firm Relations, NAR

Participants:
James Weichert, Jr., Vice President, Weichert REALTORS®
Gino Blefari, Founder, President, CEO, Intero Real Estate Services

Steve Brown: As this issue goes to press, the federal government is once again pledging continued support of Fannie Mae and Freddie Mac—a vital component in the push to ensure adequate liquidity in the mortgage marketplace. And while there are varying opinions about the current state of the economy overall, there is widespread agreement that government efforts such as the Home Buyer’s Tax Credit are contributing to stabilization in our industry. But continued growth, especially in the upper end of the housing market, depends heavily on loan availability for every qualified buyer. That is why NAR, through its Presidential Advisory Group, continues the push to restructure Fannie Mae and Freddie Mac in a way that ensures the continued flow of capital into the housing and mortgage markets to qualified buyers in all economic conditions. Visit www.REALTOR.org/government_affairs/gapublic/gse_principles to learn more.

Where do we stand on these issues today and what do brokers need to know going forward? Today we have invited a couple of outspoken industry veterans to bring us up to date. Jim, your dad was among the earliest proponents of recovery stimulus efforts. What’s your take on restructuring and its impact on lending now?

James Weichert, Jr: The way we see it, we’ve gone from an environment of overly lax lending practices a few years ago to a period where regulatory reforms have become so restrictive that qualified consumers, as you have said, are having trouble getting loans. At the same time, these regulatory changes have increased the lender’s cost of doing business, and the additional expense winds up being transferred to the consumer in the form of more expensive loans. I think we need to find a happy medium that provides checks and balances without inhibiting lending.

Gino Blefari: In my opinion, in some ways, it is as though we’ve fallen down the rabbit hole back into the 1980s, when the first and most important question we asked was, ‘can this buyer get a loan?’ That is something we weren’t so concerned about for a while, and it’s come back front and center. One of the things we might think about now is requiring that buyers have adequate reserves to protect against default—because experience is showing us that even loan modifications don’t necessarily work. Too many people will just find themselves underwater again.

James Weichert, Jr: Which is one reason we have been flooded with short sales.

Gino Blefari: Actually, I got to calling them ‘long sales’ – do I need to explain why? So okay, we all learned that the package needs to be perfect when it goes to the lender, and brokers need to educate agents about how to move those packages through.

James Weichert, Jr: I think the worst might be over on that. In many cases, the wait time seems to be shortening as both REALTORS® and lenders work their way out of what has really been a pretty tight box. I think the lending situation will improve, though it certainly will take time.

Steve Brown: Yes, and NAR provides plenty of material to help brokers train agents in handling the short sale, including the new Short Sales and Foreclosure Resource certification. But the question is, is this surfeit of short sales – even better-managed short sales – helping to firm up what most of us would call a shaky recovery?

Gino Blefari: Not really, because in a short sale, the seller is the bank, and the bank doesn’t move up to a larger home. It’s the move-up market that needs to be addressed. One of the things we’d like to see happen, assuming a borrower has good credit and solid employment, is increasing conforming loan limits.

James Weichert, Jr: Absolutely. Some of the steps the government has taken, like buying mortgage-backed securities and keeping short-term interest rates low, are really helping to ensure adequate liquidity. A viable solution for jumbo loans now would help jump-start the higher end market. There seem to be a number of solutions being discussed…let’s see what transpires.

Steve Brown: You know, I have to say how important I think it is that brokers stay informed about all the options under discussion.

Gino Blefari: Yes, as well as on all the other issues that could impact the move-up market.

James Weichert, Jr: I agree. Also, if we’re going to bring about a sustained market recovery, it’s vital to work collectively as an industry. It’s why NAR is so important to us, and why the real estate, home building and mortgage industry associations need to work together for the common goal.

Gino Blefari: There’s no question that what happens to Fannie and Freddie impacts everyone – FHA and everyone else. Let’s face it, without available financing, none of us get to do real estate! But we’ve been through these kinds of cycles before. Hopefully, getting through this one will leave us all a little wiser, too.

This blog has moved

2010-04-29T12:49:00.001-07:00

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End of Home Buyer Tax Credit Unlikely to Deter Most Real Estate Buyers

2010-04-29T11:27:00.000-07:00

The expiration of the 2010 Home Buyer Tax Credits on April 30 is unlikely to put off Americans looking to purchase homes who believe now is a good time to buy and are confident that home prices will rise according to a survey released by Prudential Real Estate and Relocation Services, Inc., a Prudential Financial, Inc. company. The survey of 1,000 Americans between the ages of 25-64 with at least $35,000 household income was conducted during April 15-20, 2010.

More than 90% of consumers believe that the home buyer tax credits have helped both first-time home buyers and the U.S. housing market overall. Among consumers actually shopping for homes, 65% believe that the end of the tax credits will have little or no effect on their interest in purchasing a home.

While consumers remain unsure about the direction of the housing market, the survey reveals that they are optimistic about real estate values with 46% of consumers expecting real estate prices in their area to increase over the next year. Just 12% expect prices will decline. Over the next five years, 79% expect real estate prices to increase, with 20% expecting prices to increase substantially.

“The survey underscores the key role the federal home buyer tax credits played in stimulating residential real estate market activity and the U.S. economy,” said James Mallozzi, chairman and chief executive officer of Prudential Real Estate and Relocation Services, Inc. “It also shows that most consumers believe the market has hit bottom and are more optimistic about the future.”

Survey respondents identified concerns about rising mortgage interest rates and unemployment as the most important factors affecting their decision to purchase a home, along with more stringent lending criteria and fewer mortgage-backed securities purchased by the Federal Reserve. The expiration of the tax credits placed lowest on their list of concerns. Among those who have recently purchased a home, 61% cited low mortgage interest rates as “very important” to their decisions – an amount greater than either the tax credit or even cheaper prices. The 66% expecting interest rates to rise underscores potential headwinds for the market.

“The tax credits clearly helped stimulate the market when consumer confidence was low and housing inventory was high,” said Earl Lee, president, Prudential Real Estate and Relocation Services, Inc. “While the tax credit expiration is a concern for many, the bigger issues now are the availability and cost of financing as well as if they will have a job.”

Despite the significant downturn in the real estate market, the survey underscores that the dream of homeownership and the perception that owning a home is a good investment remain intact. Among current renters, 75% still believe owning their home is a better long-term choice for their needs than renting.

The majority of consumers also believe that homeownership is a better investment than individual stocks or bonds (75%), mutual funds (72%), or savings accounts (74%).

“The real estate market is precariously balanced. Consumers are clearly motivated to take advantage of the opportunities the current low interest rates and prices afford,” Lee notes. “While the market is picking up in terms of sales and confidence, and the majority still believe that owning a home is a good investment, the outlook for the market remains highly dependent upon the direction of the economy overall.”

Restaurant Wednesday

2010-04-28T10:58:00.000-07:00

tayst Restaurant and Wine Bar
As Nashville's first and only certified green restaurant tayst provides primarily local, sustainable food served in a playful manner. This little neighborhood restaurant with the fancy food lives the motto, "Eat local, drink global."

location
2100 21st Avenue South
Nashville

taystrestaurant.com

Nashville Mayor adds 3 aides to make city healthier, greener

2010-04-27T11:26:00.000-07:00

Mayor Karl Dean has hired three young aides focused on making Nashville a healthier, greener and even more volunteering city.
One is an attorney, a French horn player and, like Dean, a Boston Red Sox fan. Another is a one-time "Nashville's Most Beautiful People" recipient and has led a radio station's outdoors program since 1997. The third is a veteran city planner who was already in charge of Dean's efforts to add bike lanes and sidewalks around Nashville.

In the past month, Dean has named a director of healthy living, Toks Omishakin; a director of the new Mayor's Office of Environment and Sustainability, Chris Bowles; and a chief service officer, Laurel Creech.

Each of them will be paid with federal or private grant money, not city tax dollars. But at a time when Dean has asked Metro departments to prepare for 7.5 percent budget cuts and potential job losses, he'll have to work to explain that his office isn't eating caviar while others chew chopped liver.

"It's just a timing issue," said Councilman Erik Cole, an ally of the mayor. "It's a harder job to communicate that to the council and constituents. It's a difficult task for the mayor to talk about these initiatives when we're in this budget climate."

Dean, who will release his budget recommendations Thursday, said he's accustomed to explaining which pools of money are eligible to pay for which jobs, services and projects. He said his administration rightly applied for grant funds that will allow the city to do more than its own tax revenues can pay for.

"If we didn't do this, we'd be leaving money on the table, which I don't think is my job to do," he said Thursday.

Funds fight obesity
The largest pot of money comes from the U.S. Health and Human Services Department, which awarded Nashville $7.5 million to support public health efforts to reduce chronic disease and childhood obesity. While the Metro Health Department will administer the two-year grant, Omishakin will coordinate the work of other departments, Dean said.
The work will include creating safer routes for children to walk to school, putting fresh fruits and vegetables in neighborhood markets and increasing awareness about the need for motorists and cyclists to share the road.
Omishakin, 33, has worked as a planner for Metro for about eight years. For more than a year he has been Dean's bicycle and pedestrian coordinator, a job he'll continue to hold.

In an e-mail interview — Dean's office declined to make the aides available by phone or in person — Omishakin said he was looking forward to the challenge of "creating a paradigm shift in a city this large."

"We want Nashvillians to take steps towards walking and riding buses and bikes," he said. "It would be great to see families and neighborhoods throughout the city more committed to a healthier lifestyle. This paradigm shift starts with informing and educating the community at large about healthier options, but we have to continue to build the infrastructure to support this lifestyle, as well."

Metro also is getting a two-year, $200,000 grant from the Rockefeller Foundation to develop and implement a plan to increase volunteerism. Nashville is one of 10 "cities of service" that won the money under a program initiated last year by New York City Mayor Michael Bloomberg.

As chief service officer, Creech, 35, is in charge of the volunteerism plan, which will focus on education, the environment and disaster preparedness. A student of Irish poetry and African-American studies in college, she created and ran Lightning 100's Team Green outdoor adventure program.

"She's a real healthy outdoors person who knows a lot of people who are involved in a variety of efforts to make Nashville a better place to live," Dean said.

Volunteers wanted
Creech also has advised the mayor on environmental issues and increasing bicycle and pedestrian activity.

"My goal is to create easier access and offer more selections for our community to volunteer in an area(s) that they are passionate about," she wrote. "... Having passion about the environment that surrounds Nashville and a greater sense of working together will only further improve our community's lifestyles both individually and as a whole."
Bowles, 29, was an environmental attorney at Bass Berry & Sims for about two years after graduating from Vanderbilt University Law School in 2008. He co-founded and edited an environmental law and policy review at Vanderbilt.
He'll be responsible for implementing the recommendations made last year by Dean's Green Ribbon Committee, as well as implementing a $6 million U.S. Department of Energy grant if Nashville wins it. Bowles' salary will be paid out of grant funds the city already has received.

Bowles, who worked as a freelance musician in Wisconsin for two years after college, said he was grateful for an opportunity to "make a difference for Nashville in an area that I am passionate about." He said he wants to create a culture in which thinking green becomes second nature.

"I believe that Nashville will have succeeded in its mission to become a truly green city when we also regularly ask ourselves whether the choices we make as individuals, family members, citizens and professionals will help ensure that our resources will also be available to future generations and whether those choices will enhance the quality of life in Nashville," he wrote
Dean said it was important to have someone on his staff coordinating the city's environmental work.

"You've got to keep moving forward, and that's why you need somebody in this office leading that effort. The mayor's office, the strength we bring to something is, when we want to do it, it's pretty clear that's a priority of the government."

Only 4 More Days!

2010-04-26T09:13:00.000-07:00

Only 4 days remain for the $8,000 Tax Credit! You must have an executed contract by April 30th to qualify! Contact Ashley, David or T.J. now!

Existing-Home Sales Rise on Home Buyer Tax Credit and Favorable Market Conditions

2010-04-23T07:16:00.000-07:00

Buyers responding to the home buyer tax credit and favorable affordability conditions boosted existing-home sales in March 2010, marking the beginning of an expected spring surge, according to the National Association of Realtors.

Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, rose 6.8% to a seasonally adjusted annual rate of 5.35 million units in March from 5.01 million in February, and are 16.1% above the 4.61 million-unit level in March 2009.

Lawrence Yun, NAR chief economist, said it is encouraging to see a broad home sales recovery in nearly every part of the country, with two important underlying trends. “Sales have been above year-ago levels for nine straight months, and inventory has trended down from year-ago levels for 20 months running,” he said. “The home buyer tax credit has been a resounding success as these underlying trends point to a broad stabilization in home prices. This is preserving perhaps $1 trillion in largely middle class housing wealth that may have been wiped out without the housing stimulus measure.”

Total housing inventory at the end of March rose 1.5% to 3.58 million existing homes available for sale, which represents an 8.0-month supply at the current sales pace, down from an 8.5-month supply in February. Raw unsold inventory is 1.8% below a year ago, and is 21.7% below the record of 4.58 million in July 2008.

“Foreclosures have been feeding into the inventory pipeline at a fairly steady pace and are being absorbed manageably,” Yun said. “In fact, foreclosures are selling quickly, especially in the lower price ranges that are attractive to first-time home buyers.”

A parallel NAR practitioner survey shows first-time buyers purchased 44% of homes in March, up from 42% in February. Investors accounted for 19% of transactions in March, unchanged from February; the remaining sales were to repeat buyers. All-cash sales remain elevated at 27% in March, the same as in February.

The national median existing-home price for all housing types was $170,700 in March, up 0.4% from March 2009. Distressed homes, typically sold at a 15% discount, accounted for 35% of sales last month – unchanged from February.

“With home values stabilizing, a revival in home buying confidence will likely help the housing market get back on its feet even as the tax credit impact disappears,” Yun said.

NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz., said buying conditions are in near-perfect alignment. “Even with tougher loan standards, historically low mortgage interest rates with affordable prices and a sense that the market is turning have created optimal conditions in much of the country,” she said.

“With the fast approaching April 30 deadline to get a contract in place for the tax credit, Realtors are working harder than ever to negotiate transactions, arrange services and complete paperwork,” Golder said. “Because many repeat buyers need to sell their current home first, many will be purchasing later without the tax credit but now have the benefit of a more buoyant housing market.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage dipped to 4.97% in March from 4.99% in February; the rate was 5.00% in March 2009.

Single-family home sales rose 7.3% to a seasonally adjusted annual rate of 4.68 million in March from a level of 4.36 million in February, and are 13.3% above the 4.13 million level a year ago. The median existing single-family home price was $170,700 in March, up 0.6% from March 2009.

Single-family median prices rose in 14 out of 20 metropolitan statistical areas reported in March in comparison with a year earlier. Five metro areas experienced double-digit increases, including San Diego, St. Louis and Boston.

Existing condominium and co-op sales increased 3.1% to a seasonally adjusted annual rate of 670,000 in March from 650,000 in February, and are 39.3% higher than the 481,000-unit level in March 2009. The median existing condo price was $170,600 in March, which is 0.7% below a year ago.

Northeast
Regionally, existing-home sales in the Northeast increased 6.0% to an annual level of 890,000 in March and are 25.4% higher than a year ago. The median price in the Northeast was $249,800, up 8.9% from March 2009.

Midwest
Existing-home sales in the Midwest rose 7.2% in March to a pace of 1.19 million and are 15.5% above March 2009. The median price in the Midwest was $139,300, up 0.2% from a year ago.

South
In the South, existing-home sales increased 7.1% to an annual level of 1.97 million in March and are 13.9% higher than a year ago. The median price in the South was $154,800, up 5.2% from March 2009.

West
Existing-home sales in the West rose 6.6% to an annual rate of 1.30 million in March and are 14.0% above March 2009. The median price in the West was $209,400, down 7.9% from a year ago.

Existing-Home Sales Rise on Home Buyer Tax Credit and Favorable Market Conditions

2010-04-22T11:49:00.000-07:00

Buyers responding to the homebuyer tax credit and favorable affordability conditions boosted existing-home sales in March, marking the beginning of an expected spring surge, according to the National Association of Realtors®.

Existing-home sales1, which are completed transactions that include single-family, townhomes, condominiums and co-ops, rose 6.8 percent to a seasonally adjusted annual rate of 5.35 million units in March from 5.01 million in February, and are 16.1 percent above the 4.61 million-unit level in March 2009.

Lawrence Yun, NAR chief economist, said it is encouraging to see a broad home sales recovery in nearly every part of the country, with two important underlying trends. “Sales have been above year-ago levels for nine straight months, and inventory has trended down from year-ago levels for 20 months running,” he said. “The home buyer tax credit has been a resounding success as these underlying trends point to a broad stabilization in home prices. This is preserving perhaps $1 trillion in largely middle class housing wealth that may have been wiped out without the housing stimulus measure.”

Total housing inventory at the end of March rose 1.5 percent to 3.58 million existing homes available for sale, which represents an 8.0-month supply2 at the current sales pace, down from an 8.5-month supply in February. Raw unsold inventory is 1.8 percent below a year ago, and is 21.7 percent below the record of 4.58 million in July 2008.

“Foreclosures have been feeding into the inventory pipeline at a fairly steady pace and are being absorbed manageably,” Yun said. “In fact, foreclosures are selling quickly, especially in the lower price ranges that are attractive to first-time home buyers.”

A parallel NAR practitioner survey3 shows first-time buyers purchased 44 percent of homes in March, up from 42 percent in February. Investors accounted for 19 percent of transactions in March, unchanged from February; the remaining sales were to repeat buyers. All-cash sales remain elevated at 27 percent in March, the same as in February.

The national median existing-home price4 for all housing types was $170,700 in March, up 0.4 percent from March 2009. Distressed homes, typically sold at a 15 percent discount, accounted for 35 percent of sales last month – unchanged from February.

“With home values stabilizing, a revival in home buying confidence will likely help the housing market get back on its feet even as the tax credit impact disappears,” Yun said.

NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz., said buying conditions are in near-perfect alignment. “Even with tougher loan standards, historically low mortgage interest rates with affordable prices and a sense that the market is turning have created optimal conditions in much of the country,” she said.

“With the fast approaching April 30 deadline to get a contract in place for the tax credit, Realtors® are working harder than ever to negotiate transactions, arrange services and complete paperwork,” Golder said. “Because many repeat buyers need to sell their current home first, many will be purchasing later without the tax credit but now have the benefit of a more buoyant housing market.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage dipped to 4.97 percent in March from 4.99 percent in February; the rate was 5.00 percent in March 2009.

Single-family home sales rose 7.3 percent to a seasonally adjusted annual rate of 4.68 million in March from a level of 4.36 million in February, and are 13.3 percent above the 4.13 million level a year ago. The median existing single-family home price was $170,700 in March, up 0.6 percent from March 2009.

Single-family median prices rose in 14 out of 20 metropolitan statistical areas reported in March in comparison with a year earlier. Five metro areas experienced double-digit increases, including San Diego, St. Louis and Boston.

Existing condominium and co-op sales increased 3.1 percent to a seasonally adjusted annual rate of 670,000 in March from 650,000 in February, and are 39.3 percent higher than the 481,000-unit level in March 2009. The median existing condo price5 was $170,600 in March, which is 0.7 percent below a year ago.

Regionally, existing-home sales in the Northeast increased 6.0 percent to an annual level of 890,000 in March and are 25.4 percent higher than a year ago. The median price in the Northeast was $249,800, up 8.9 percent from March 2009.

Existing-home sales in the Midwest rose 7.2 percent in March to a pace of 1.19 million and are 15.5 percent above March 2009. The median price in the Midwest was $139,300, up 0.2 percent from a year ago.

In the South, existing-home sales increased 7.1 percent to an annual level of 1.97 million in March and are 13.9 percent higher than a year ago. The median price in the South was $154,800, up 5.2 percent from March 2009.

Existing-home sales in the West rose 6.6 percent to an annual rate of 1.30 million in March and are 14.0 percent above March 2009. The median price in the West was $209,400, down 7.9 percent from a year ago.

4 Things First-Time Home Buyers Need to Know about Home Inspections

2010-04-21T09:08:00.000-07:00

A professional home inspection can not only provide a great education about the home’s systems, but also be a crucial tool in negotiating the most equitable price on the home, according to HouseMaster, one of the first and largest home inspection franchisors in North America.

“Our experience and research shows that approximately 40% of resale homes have at least one defect that can cost a home buyer a minimum of $500 to repair,” said Kathleen Kuhn, President of HouseMaster.“A home inspection by a professional and qualified home inspector is an excellent tool to encourage home sellers to make repairs or make further price adjustments as a result of conditions noted in the inspection report.”

According to the National Association of Realtors (NAR), in 2009, a record 47% of homes sold were purchased by first-time buyers. Tax credit incentives from the federal government of up to $8,000 and historically low mortgage rates continue to attract first-time buyers to the market. A professional home inspection not only educates buyers on the condition of the home but can minimize costly surprises down the road. HouseMaster provides the following tips to ensure that first-time buyers make an educated decision when purchasing a home and get the best price possible.

1. Inspect the Inspector. Only hire a home inspector with an excellent reputation and credentials. Ask how long the company has been in business, ask about specific formal training and ongoing education the inspector has and verify the inspector carries professional liability insurance also known as “Errors & Omissions” (E&O). If the company doesn’t carry this insurance, it could indicate a poor track record or lack of experience.

2. Ask for a sample of a report. The credentials of the inspection company and the quality of the final inspection report will be important. A poorly prepared report without pictures or clear, concise details addressing all the various systems and accessible elements of the home is less likely to be taken seriously by a home seller.

3. Inspect ancillary systems. It’s hard for first-time home buyers to know what they need, so be sure to ask what additional services the company offers. If the home you are considering has a septic system for example, a professional home inspection company may offer septic system inspections or can coordinate that service for you. Generally, the company will offer you a multiple services discount as well as the added convenience of only having to attend one inspection appointment. Other common services offered by home inspectors are termite inspections, mold screening, water testing and radon testing.

4. Go along on the inspection. Ask the inspection company if they encourage buyers to tag along on the inspection. If the inspector discourages you from going along and asking questions, find another inspector. A home inspection is not simply a laundry list of what is wrong with the home. In addition to documenting issues and needed repairs that may exist, a professional home inspector will also show the new buyer how to operate the various systems in the home and provide tips on improving energy efficiency and maintaining the home in general. And being present during the inspection will make the final written report that much more meaningful.

Tax Credit Expires in 10 Days!

2010-04-20T10:57:00.000-07:00

If you would like to take advantage of the $8,000 Tax Credit; NOW is the time. You must be under contract by the 30th of April. Our FINE agents are qualified to assist you into the home of your dreams! Contact us today!

4 Energy-Efficient Renovations Homeowners Should Consider

2010-04-19T08:59:00.000-07:00

HouseMaster, a home inspection organization, urges homeowners to be proactive in making energy-efficient home renovations in order to receive the rebates outlined in President Obama’s new “Home Star Retrofit Rebate” program, recently introduced in Congress. If passed, the proposed $6 billion program could reduce energy costs for middle-class families by hundreds of dollars a year.

HouseMaster provides the following easy check-ups every homeowner can do to optimize the energy efficiency of their home:

Windows and Doors
Holes in windows and doors allow conditioned air to leak from your home and allow outdoor air to infiltrate, which can tax your heating and cooling systems and raise your energy bills. Caulk around windows and doors where there are gaps. Also caulk areas where plumbing lines or electrical wiring extend to the exterior of the home.

Floor and Wall Insulation
Insulation acts as a barrier to heat movement and helps keep any home cooler in the summer and warmer in the winter—all while using less energy. Making sure insulation is used at potential gaps such as around an attic stairway or over the attic access door is important as well.

Shedding a Little Light on a Simple Solution
By replacing traditional incandescent light bulbs with compact fluorescents, you can use up to 75% less energy on lighting alone. A wide assortment of CFLs is now available for almost any type fixture found in a home.

Appliances and HVAC Systems
Your major household appliances are a good place to focus on to make your home more eco-friendly. Start by changing the filters of your HVAC systems regularly and consider upgrading older appliances to take advantage of newer, more efficient designs.

Buy a Programmable Thermostat
This energy-saving step can have a positive and noticeable impact right away. Programmable thermostats are fairly easy to install and once they are set up a homeowner can adjust them as the weather changes. For every degree that a thermostat is set back, you may realize a savings between 1-3% on your heating or cooling bills.

For more information, visit www.housemaster.com.

Column: Wow, what a weekend ahead of us!

2010-04-16T11:28:00.000-07:00

What a lively week we’re having in Nashville and with an action-filled weekend on the horizon.

With tax day behind us, we have spring fever, we’re lighter of heart, a little less serious.

With that in mind, today’s Davidson A.M. offers an at-a-glance rundown of community events, some annual and some special this year.

And, while we always hope for lovely weather for the Iroquois Steeplechase (May 8) and the Bellevue Picnic (May 15), those traditional spring activities that help define life in Davidson County, let’s keep a good thought for sunshine for Earth Day Saturday. Have fun.

Let’s start with Natural Areas Week that continues today.

Friends of Radnor Lake, the environmental organization that protects one of

Davidson County’s most scenic and serene spots, has been busy. Head to the lake area today at 9 a.m. to visit with the turtles, at 7:30 a.m. Saturday, walk the Lake Trail for bird watching at 7:30 a.m. and learn about snakes at 10:30 a.m. On Sunday, meet at the Visitors Center at 4 p.m. for a short hike to Netherton Point to honor the group’s award winners.
www.radnorlake.org for more details.

NASHVILLE FILM FESTIVAL
The festival is ongoing through April 22. It’s a major event of films, workshops and more with a huge schedule we can’t reproduce here, but we can tell you it’s held at the Regal Green Hills Stadium 16, 3815 Green Hills Village Drive, near the Mall at Green Hills. Expect Green Hills’ restaurants to be packed. For more information, visit www.nashvillefilmfestival.org.

EAKIN SCHOOL CARNIVAL
Eakin Elementary’s annual carnival is 5:30-8 p.m., on campus at 2500 Fairfax Ave. Activities will include carnival games, prizes, a giant slide and obstacle course, bake sale, wall climbing, popcorn and face painting. Tickets are $5 per child with a $15 max per family. Parents and chaperones are free. For more information, call 615-298-8076.

HIGHBALLS & HYDRANGEAS
Cheekwood opens its doors 7-10 p.m. for a party, rain or shine. Cocktails, wine, live music by The Pat Patrick Band. $15 in advance or $20 at the door. www.highballsandhydrangeas.com.

PROMS
Expect to see nicely dressed young people in Davidson County’s ballrooms, party venues and nice restaurants. Schools having proms this weekend are: on Friday, Nashville School of the Arts, and on Saturday, Harpeth Hall, Hume Fogg, USN, Hillwood and Ensworth. Donelson Christian hosts its banquet on April 17.

PEDAL THE PARKS AND PARKWAY BIKE TOUR
Friends of Warner Parks host the tour 9 a.m. to 2 p.m. The tour includes 25-mile and 50-mile rides through Williamson County, the Natchez Trace and along Harpeth River with a rest stop at Loveless Café. Registration is $25 on April 17 at the Warner Park Special Events Field at Old Hickory Boulevard and Vaughn Road.

CAPTURE THE FLAG CLASSIC
Games for all ages serves as a benefit for Preston Taylor Ministries. Register at 10:30 a.m. with games 11 a.m.-1 p.m. at First Presbyterian Church, 4815 Franklin Road. Proceeds from the sale of balloons and concessions help the Ministries. For more information, call Chan Sheppard, 615-596-4386.

WALK A MILE IN MY SHOES
The Key Alliance raises funds for the Metropolitan Homelessness Commission and sponsors the one-mile walk. Sign-in begins at 9 a.m. at LP Field in Lot R at the entrance of the Shelby Avenue Pedestrian Bridge. The walk begins at 9 a.m. Donations of $25 are requested.

RED SHOE PARTY FUNDRAISER
CASA of Nashville hosts its 11th annual Red Shoe Party fundraiser as part of National Child Abuse Prevention Month. This year’s Light of Hope: Red Shoe Party is 7 p.m. at the W.O. Smith/Nashville Community Music School. CASA trains community volunteers to advocate for children in the court system.

Tickets are $10 and available for purchase from 10:30 a.m. to 4 p.m. at the Summer Classics parking lot located at 2600 12th Ave. S. Tickets are free for members of the U. S. Forces and the Metro Police and Fire departments and their spouses who present official ID. For more information, please visit www.12southtour.com, email twelvesouthtour@me.com or call 500-5571.

BABY FAIR
The Baby Fair is from 10 a.m. to 3 p.m. at Baptist Hospital, 21st Avenue entrance, in the GSO Education Center. Admission is free. Parking is free in the 21st Avenue Garage.

The fair features tours, educational seminars, exhibits and demonstrations about infant safety, education, health and nutrition, exercise, maternity wear, baby clothing, furniture and more.
For more information, call 615-256-2158, ext. 139.

2010 NASHVILLE
EARTH DAY FESTIVAL
With the theme of, “Strike a Chord, Go Green,’’ the annual day-long celebration is 11 a.m.-7 p.m. at Centennial Park, 2500 West End Ave. It’s free. There’s live music, with Bela Fleck as the headliner, food and farming workships, children’s events, educational programs, recycling, food and drink. New this year will be the Merchant Village, a place to buy green products from small businesses.

Here’s the music lineup: Homemade Water 2 p.m.-2:45 p.m.
The Apache Relay 3 p.m.-3:45 p.m.
Sara Watkins 4 p.m.-5 p.m.
Béla Fleck, Acoustic with Friends 5:30 p.m.-7 p.m.

For more information, call Claudia Schenck at (615) 336-5646 or visit www.nashvilleearthday.org.

COMMUNITY GARAGE SALE
Christ the King’s annual Community Garage Sale is 7 a.m.-3 p.m. at the school, 3105 Belmont Blvd. Hundreds of families have donated items such as furniture, housewares, lawn and garden, crafts, sporting equipment, books, DVDs, kids items and more. After 1 p.m., all items are half price with a special fill-a-bag of clothes for $5. Go to www.ctk.org for more information.
BELLEVUE COMMUNITY CLEANUP
Help Metro Beautification with this neighborhood clean up 9-11 a.m. Meet across from the Boone Trace subdivision. Call 862-8418 for more information.

TIM TEBOW’S PARENTS
Bob and Pam Tebow, parents of ex-Florida quarterback Tim Tebow, will speak on ‘‘Bringing Up Tim Tebow: Raising Children to Love God & Serve,’’ at Lipscomb University at 2 p.m. in Allen Arena on campus. $5. For more information, call 615-966-5850.

RAGIN’ CAJUN
CRAWFISH BOIL
All-you-can-eat New Orleans style crawfish available 4-9 p.m. at Riverfront Park. Price is $28 if you buy a ticket today, $30 at the door. Must be 21. The event is a fundraiser for The Boys and Girls Clubs of Middle Tennessee and NJC Charities. For more information, got to www.ragincajunboil.org.

VILLAGES IN BLOOM
Ten Thousand Villages at 3900 Hillsboro Pike will host its annual garden event “Villages in Bloom” with planting demonstrations at 11 a.m., 12:30 p.m. and 2 p.m. The store’s collection of gardening products includes planters, wind chimes, bird houses, whimsical candleholders and patio décor handcrafted by artisans in Haiti, Indonesia, Vietnam and Bangladesh.

THE BIG STITCH 6
Knitters and crocheters are needed to make chemo hats, baby blankets, helmet liners for deployed soldiers and lap blankets for soldiers and veterans in hospitals. Work and fun is 9 a.m.-3 p.m. at FiftyForward Knowles, 174 Rains Ave. near the entrance to the Fairgrounds.

Bring a lunch, drinks are provided. Instruction is available, call Deborah Stillwell at 615-579-1857, if you wish to learn. Otherwise, just show up.

IS PLUTO A PLANET? VOTE SATURDAY AT ASTRONOMY DAY
Get ready to discover the planets, stars and many more destinations on Astronomy Day at noon Saturday, April 17, at the Adventure Science Center, 800 Fort Negley Blvd.

Members of the Barnard-Seyfert Astronomical Society and Austin-Peay State University Physics Club will use Space Chase exhibits to demonstrate Newton’s Laws of Motion, build scale models of the solar system and answer visitor questions.
Astronomy Day is included with regular admission.
The day will end with a free Star Party, weather permitting, 8-10 p.m. in front of Adventure Science Center.
Members of the Barnard-Seyfert Astronomical Society will be available with telescopes to provide views of Venus, Mars, Saturn and the Moon.
Call AstroLine at 615-401-5097 or follow the center on Twitter @adventuresci for updates.

WHAT’S
HAPPENING SUNDAY

LIVE IT UP!
DOWNTOWN
HOME TOUR
Sponsored by the Nashville Downtown Partnership, the self-guided tour of residential buildings downtown shows off urban living noon-6 p.m. Tour stops are Art Avenue Lofts, Viridian, Church Street Lofts, 211 Printers Alley, Hotel Indigo, The Stahlman Building, Ireland28, 905 Phillips St., Row 8.9, Harrison Square, District Lofts and Encore. Ticket holders can pick up an express shuttle. Cost is $10. For more information, go to www.nashvilledowntown.com.

MARCH FOR BABIES
A walk fundraiser for the March of Dimes begins with registration at 12:30 p.m. and the two-mile walk at Centennial Park’s Center Lawn at 2 p.m. For more information, 615-399-3200.

ALL-STAR CELEBRITY BASKETBALL GAME
Celebrities play hoops at 6 p.m. at Belmont University’s Curb Event Center to raise money for the Dr. Diane Greer Walker Memorial Fund and the Steve McNair Foundation. Hosted by Dr. Joseph W. Walker III. $15, students $10 with ID. www.josephwalker3.org.

LINKING HANDS
FOR LIFE
The first annual statewide event is part of National Donate Life Month at the Church Street Greenway at 1:30 p.m. rain or shine. Join hands to support organ and tissue donation. More information is at www.TnDonorRegistry.org.

East Nashville neighborhood bounces back

2010-04-15T11:35:00.000-07:00

Drug deals, prostitution stings and dilapidated houses were once the norm for one East Nashville neighborhood.

Concerns about crime resonated from almost every corner in the McFerrin Park neighborhood.

Residents watched code violations and criminal activity consume their middle class community, once filled with historic houses and well-manicured lawns.

This neighborhood that many counted out is seeing a revival. Residents have organized and become watchdogs, doing their part to deter crime by reporting illegal activity to police.

Metro agencies have invested millions of dollars for the area’s improvement. Vacant lots are no longer dumping sites. Drug dealers and prostitutes have moved out of the area once known as North Edgefield.

A local developer plans to revive the old Roxy Theater, at 827 Meridian St., to feature independent films and add a music studio.

The socio-economic makeup of the neighborhood is also changing, as gentrification settles into the once predominately African-American community.

“The community is in a winning position now, and we believe we have gained an edge over the drug dealers,” said Mike Servais, who grew up in the McFerrin Park area and works for Nashville’s Salvation Army in the same neighborhood.

“We have to made a statement that this community’s long-term history and future have everything to do with positive cultural progress, and not with drug dealing and prostitution.

The latest on a long list of enhancement projects is a foreclosed property at 704 Meridian St. under revitalization by the Nashville Area Habitat for Humanity.

The late 19th century Victorian house was threatened by demolition last November because of fire damage. The Metropolitan Development Agency acquired the property and worked with the Metro Historical Commission to donate the structure to Habitat.
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“It’s an awesome thing they are coming into out neighborhood and fixing up this foreclosed home,” said Michele Bennett, president of the McFerrin Park Neighborhood Association. “A lot of the residents didn’t want to see the house torn down and wanted to maintain.

“It provides affordable housing and creates a balance for the gentrification that is taking place in our neighborhood.”

About 40 percent of the work on the modest 1,900-square-foot home is complete, and many area residents are volunteering to pitch in on the construction.

“The idea that a bunch of us are putting this home back in its original form and modifying the interior will enrich the neighborhood,” Servais said. “It’s a step up for the area.”

Providing affordable housing has always been Habitat’s goal, and it’s expanding with a new initiative. ReConstruct, as the program is called, is designed to help revitalize neighborhoods by restoring dilapidated homes and making needed improvements to others.

The rehab of the Meridian Avenue house is a first for the Nashville-based agency, whose officials say they will also continue building new construction homes.

“We are keeping with our same mission, but vacant land will eventually run out,” said Eric Helm, director of Habitat’s ReConstruct program. “We want to target inner-city development, because if we don’t, Nashville starts to go down hill. We come in and remodel these houses, and it helps preserve the affordable housing stock.”

Metro Historical, Historic Nashville Inc., Tennessee Preservation Trust, and The Center for Historic Preservation at Middle Tennessee State University have all partnered with Habitat on this local preservation project.

Helm is working with these agencies to locate other historic structures that might be worth saving. Another house in McFerrin Park is being considered for a rehab, along with a home in the Edgehill community.

“These (historic) buildings are a test to our cities growth and character,” said Tim Walker, executive director of the Historical Commission. “McFerrin Park and nearby Cleveland Park are both neighborhoods in transition but have lost some of their historic fabric.

“The Habitat project keeps the historical character in place, while finding new homes for people.”

But for McFerrin Park neighbors, it’s just another step toward rebuilding their community.

“We all can play a part in making the neighborhood better by taking ownership and responsibility,” Bennett said. “This project shows that East Nashville has a lot to offer, and people are drawn to that.

“We have always been a jewel in the rough, and people are now starting to recognize who we are.”

Home Staging Tips That Focus on Largest Customer Segments

2010-04-14T09:19:00.000-07:00

The busy spring home buying and selling season is underway and the experts at Pulte Homes are offering staging tips to get your home ready for sale. A quicker home sale can be reached by keeping in mind the needs of the home’s most likely buyer and creating a fresh inspiring look just for them, according to Pulte Homes expert Janice Jones, national vice president of merchandising.

“Everyone understands the value of de-cluttering, cleaning and refreshing a home in today’s competitive market,” Jones said. “The difference between a ‘For Sale’ and a ‘Sold’ sign often boils down to effectively staging a home to appeal to young singles, families or empty nesters—the three largest customer segments that are likely to buy your home. Home sellers should have a good idea of the type of buyer who will make an offer and, since everyone likes an updated home, some simple refreshes can achieve an updated look and feel.”

Jones recommends conducting a technology overhaul prior to staging your home. “Old technology will date your home and you seldom have a second chance to make a positive first impression,” she said. “Flat screen TVs, lap top computers, iPods with docking stations and wireless technology have eliminated the need for large bulky entertainment centers or massive desks designed to hide wiring. Once you’ve rid your home of bulky, dated stereos and TVs, it’s time to hone in on attracting prospects.”

For singles, Jones recommends emphasizing sleeping spaces and the living room, which are critical to this group. “Singles will spend a lot of time in the living room and the bedroom, which are their sanctuaries from the outside world. As a result, there is no need to set the dining room table with place settings,” Jones said. “Instead, focus on a simple TV stand with clean lines, a flat screen TV and candles in the bedroom and bathroom.”

Young families tend to revolve around children. Items that help this demographic envision themselves living in the space include age-appropriate bedding, linens and towels, a bright rug near play areas, and strategically placed toy chests with open tops. Since kids often play or watch TV on the floor, eliminate the coffee table to create a living room that appears larger and more inviting. Jones notes to remember about the garage when staging for families. “Organize children’s toys and sports equipment to showcase the garage’s storage capacity without compromising functionality,” she said.

Empty nesters tend to seek an upgrade in quality features. Upgrading bath accessories like towel bars and toilet paper holders or decorative hanging lights to a better quality and newer style will make an impact. If the budget allows, upgrading the refrigerator, stove and dishwasher can draw in a buyer. Lighting is also a key feature for this group. Jones advises ensuring living spaces maximize natural light. If lighting is less than ideal, add lamps or a ceiling fan with light fixtures. It’s important to open heavy blinds or window coverings when showing the home.

An absolute “must” for home stagers regardless of which demographic being targeted is color. Most sellers are instructed to use neutral colors when repainting. However, adding the right punch of color to accent walls can create depth, enhance kitchen cabinets, or bring a boring bathroom to life.

Homeowners can find color in simple accessories, like throw pillows, coffee table books, and decorative canisters. Neutral colors in flooring materials, upholstery pieces and window dressing work well because they enhance brighter accents.

When choosing colors, Jones cautions homeowners to be aware of their sensory impact:

- Red is stimulating and encourages self confidence

- Orange promotes happiness and celebration

- Yellow is uplifting and light-hearted

- Blue is calming in softer tones and promotes clarity in deeper tones

- Green is the color of nature—it feels fresh and rejuvenating

- Aqua is restful while pink is gentle and sweet—making a great pair

- Purple tones bring out a sense of compassion

“The key is to experiment and put yourself in the shoes of the prospective home buyer,” Jones said. “It may be helpful to ask a friend or relative for a brutally honest opinion before and after you start staging. You may be surprised how little changes—with a little budget—can make a huge difference to a prospective buyer.”

Future of Rolling Mill Hill condos could be known soon

2010-04-13T11:21:00.000-07:00

Nashville development group and four national investors remain in the running to buy three condominium buildings atop Rolling Mill Hill that now are being marketed as an apartment community.

The five bidders, chosen from a group of 21 that submitted bids by an April 2 deadline, are now being asked to adjust their offers by Monday in terms of price or how quickly they intend to move ahead on the project. Bank of America, which owns the property, wants $10 million for the 72 units up for sale.

Nathan Swenson, a broker at Cushman & Wakefield in Atlanta, which was hired to market the buildings, declined to reveal identities of the bidders. But he did confirm that one is from Nashville while the others are national institutional or private equity investors.

The condos were a key part of the master plan for redeveloping the old Nashville General Hospital site off Hermitage Avenue near downtown. But the three buildings were taken over by the senior lender in a foreclosure after the condominium market here tanked and the Wisconsin-based developer defaulted on its $21.4 million

Senior lender Bank of America paid $7.28 million to buy the condos back and hired real estate company Cushman & Wakefield to market them for a new use, probably as upscale apartments.

"There's so many condos already in downtown Nashville … that we didn't feel like that was the right opportunity for the immediate term," Swenson said. "So, we marketed it as an apartment or rental opportunity."

A partnership of Nashville-based The Mathews Co. and Corner Partnership previously had offered $5 million to $6 million, or 40 percent below the owner's asking price, said Mark Bloom, a partner in Corner. "It's ridiculous what they're trying to get for their property," he said.

Bloom said it would be difficult for any buyer at the sought-after price to generate enough rental income and a rate of return on the investment that makes sense.

Swenson estimates that the apartments could rent for $1,400 for units that average 1,136 square feet. That's about $1.25 a square foot — a price similar to rental rates in the upscale Vanderbilt-West End Avenue area.

Kirby Davis, president of Nashville-based First Management Services and past president of the Greater Nashville Apartment Association, believes developers could get those targeted rental rates from tenants.

"They're brand-new units and have condo finishes," Davis said.

Others, however, said that it could take some time for the former condo units to get leased as apartments, in part because the Rolling Mill Hill area is largely untested as a residential market.

Bloom points to how difficult it has been for Corner Partnership to lease for $1.25 a square foot a 2,500-square-foot condo unit it bought at auction in The West End luxury condos. He said the units at Rolling Mill Hill sit in a less-attractive location and have fewer amenities.

But Davis expects the fact that the three buildings are near the Gulch and downtown to boost interest. "They're only a stone's throw from the Gulch, which is one of the hottest residential areas in terms of high-rise living," he said.

Realtors® Remain Leading Advocates for Fair Housing Laws

2010-04-12T08:50:00.000-07:00

As outspoken supporters for fair housing issues and homeownership, Realtors® will join the nation in recognizing “Fair Housing Month” this April.

Signed into law in 1968 and amended in 1988, the Fair Housing Act prohibits housing discrimination on the basis of race, color, religion, sex, disability, familial status and national origin. Realtors® work tirelessly to support this law, as well as ensure the benefits of homeownership are available to everyone.

“Realtors® are committed to bringing America home,” said National Association of Realtors® President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz. “NAR’s members work hard to build communities and an environment where everyone, regardless of race, color, religion, sex or disability can choose where they want to live.”

Through the years NAR has developed education on diversity and fair housing laws for its members. These programs and resources have educated Realtors® on the importance of inclusive housing practices and the promotion of minority homeownership.

One program, At Home with Diversity®, is a comprehensive diversity training course for members. The program provides demographics and statistics that help participants understand their local areas, marketing strategies and guidelines, as well as exercises to build diversity awareness. In celebration of Fair Housing Month, NAR will waive the course fee during the entire month of April for any local or state Realtor® association that sponsors the course.

NAR will also implement a new course that examines the role Realtors® can play in affordable housing. The course will provide guidance on how to expand opportunities to benefit home buyers as well as entire communities. The course will be available to Realtors® in May during NAR’s Midyear Legislative Meetings in Washington, D.C.

“NAR has expanded and implemented fair housing education, programs, and resources for members because Realtors® believe homeownership is an investment in everyone’s future,” said Golder. “And Realtors® across the country pledge to stay committed to this cause.”

Realtors® also strongly support programs that help improve the quality of a neighborhood as a whole while also promoting diversity. As a sponsor of the School of the Future Design Competition, NAR encourages middle school students to redesign their schools to create better learning places that are environmentally responsive and are assets to their neighborhoods. Realtors® serve as mentors to students and as judges at the regional and national level.

In addition, NAR provides funds to state and local Realtor® associations that promote diversity, housing opportunities, and smart growth. The Ira Gribin Workforce Housing Grants are awarded to state Realtor® associations to promote workforce housing initiatives. The NAR Diversity Initiative Grant Program provides up to $5,000 in matching funds for activities that reinforce the role of Realtors® in diverse communities. Grants for programs that support the mission of NAR’s Realtors® Housing Opportunity Program are available through the NAR Housing Opportunity Fund. Associations can also receive financial resources for programs and activities that promote Realtors® as leaders in improving their communities by advancing smart growth.

Commercial real estate market shows signs of improvement in Nashville

2010-04-09T07:54:00.000-07:00

The first-quarter market report released recently by the Nashville office of CB Richard Ellis offers small bits of encouragement for the year ahead in commercial real estate, noting that both the area’s office and industrial sectors posted positive net absorption, meaning more people moved or expanded into new space versus those who moved out or downsized their current space.

According to CBRE, Nashville’s office sector was essentially flat, posting 22,855 square feet of black ink. Nashville-area office properties ended the quarter with overall vacancy of 14.5 percent. The industrial sector posted 400,000 square feet of black ink, ending the quarter with an 8.9 percent vacancy rate.

“Looking for good news, there are some businesses of significant size that are in the market,” Tom Frye, managing director of Nashville’s CBRE office, wrote in the report. “Our brokers, particularly in office space, are bullish and confident that several large transactions will occur this year. Further, though not beyond the inquiry stage, we have had in the industrial sector several requests for market data for sizeable blocks of space ... some of these coming from outside the (metropolitan statistical area).”

Though Frye said this is not a year when absorption will be easy to predict, he affirmed CBRE’s previous forecast that the industrial market will post 1.5 million square feet in black ink by year’s end.

In the office sector, vacancy remained the highest in the downtown submarket, with a 24.1 percent vacancy rate, followed by Airport South’s 22.3 percent. Vacancy in the West End/Belle Meade submarket remains the lowest in the area, at 5 percent, followed by MetroCenter’s 5.9 percent and Green Hills/Music Row’s 6.2 percent. The Cool Springs/Brentwood submarket ended the quarter with a 11.8 percent vacancy rate.

Average rental rates for office space are highest in the Green Hills submarket, at $21.66 per square foot, followed by Cool Springs’ $21.64 per square foot. Downtown’s average rental rate stood at $19.45 per square foot.

In the industrial sector, vacancy was highest in the Elm Hill Pike/Interstate 40 East submarket, at 16.6 percent. Vacancy was lowest in MetroCenter/Cockrill Bend, at 3.7 percent.

For a more detailed breakdown of the Nashville market, you can register at CB Richard Ellis' Web site.

203k Funds Ensure Safe Homes; Give Homeowners Peace of Mind

2010-04-08T12:56:00.000-07:00

RISMEDIA, April 8, 2010—For many home buyers who use the government’s 203k program to renovate a home, the emphasis may be on flooring, kitchen/bath renovations or fencing. However, for one Florida home buyer, his concern was a bit more serious—ensuring a fix to the home’s electrical problems and purchasing a new air-conditioning/heating system to replace the system that had been stolen from the foreclosed home.

“They ripped it right out,” says Robert “Matt” Vanderbrink of Eustis, Florida. “It was a clean break.” If Vanderbrink wanted the home, he knew he would have no choice but to replace the system himself. Otherwise, his FHA loan would not have been approved.

After careful consideration, Vanderbrink decided to move ahead with the home purchase and decided to work with Lowe’s for all his heating/air conditioning needs.

“Lowe’s was fantastic. I worked with their Fern Park location,” says Vanderbrink. “The HVAC guys over there are true professionals. They called me and asked me to come in; they explained everything in great detail. I was really impressed.”

According to Vanderbrink, Lowe’s sent their installers over to the house before any work began so they could see what really needed—and didn’t need—to be done, ensuring that it was a custom job.

“I didn’t have to worry about anything, which was a huge relief,” he says. “The job was done so well—and quickly.”

Indeed, Vanderbrink says that once they got the go-ahead, the contractors Lowe’s brought in to handle the job took only one day to install the new system and build the new electrical lines needed for the fix.

“I couldn’t be happier,” he says. “Lowe’s took care of everything and now we have a great home that I’m very happy with.”

In fact, Vanderbrink says he’s already spreading the word on both the 203k loan and Lowe’s.

“It’s such a great program,” he says. “I know two people who are looking to buy, and I’ve already explained the program and how I worked with Lowe’s. Like me, they didn’t know anything about the loan and how Lowe’s works with 203k lenders. They were very excited.”

Adds Vanderbrink: “If I ever go this route again, I will definitely go through Lowe’s. You’re getting the people who take the time to understand your issues and needs. They’re so professional. Step-by-step, they took me through the entire process and explained how it would happen. I couldn’t have asked for anything better.”

For more information on the 203k loan program, visit www.hud.gov or www.re-buildusa.com.

Pending Home Sales Show Healthy Gain, Hint at Spring Surge

2010-04-07T12:07:00.001-07:00

Pending home sales rose in February 2010, potentially signaling a second surge of home sales in response to the home buyer tax credit, according to the National Association of Realtors.

The Pending Home Sales Index (PHSI), a forward-looking indicator based on contracts signed in February, rose 8.2% to 97.6 from a downwardly revised 90.2 in January, and remains 17.3% above February 2009 when it was 83.2. The data reflects contracts and not closings, which usually occur with a lag time of one or two months.

Lawrence Yun, NAR chief economist, said the improvement is another hopeful sign. “The rise in buyer contact activity may signal the early stages of a second surge of home sales this spring. The healthy gain hints home prices are continuing to flatten,” he said. “We need a second surge to meaningfully draw down inventory and definitively stabilize home values.”

The PHSI in the Northeast rose 9.0% to 77.7 in February and is 18.9% higher than February 2009. In the Midwest the index jumped 21.8% to 97.9 and is 18.7% above a year ago. Pending home sales in the South increased 9.2% to an index of 107.0, and the index is 17.5% higher than February 2009. In the West the index fell 4.8% to 98.0 but is 14.6% above a year ago.

“Anecdotally, we’re hearing about a rise of activity in recent weeks with ongoing reports of multiple offers in more markets, so the March data could demonstrate additional improvement from buyers responding to the tax credit,” Yun said.

Restaurant Wednesday

2010-03-31T08:52:00.000-07:00

Bound'ry

Featuring a menu specializing in contemporary global cuisine with a Southern twist, Bound'ry offers an extensive beer and wine list and traditional or tapas-style dining. Try the wood-fired artichoke, tuna nori roll, wood oven pizzas, planked trout, double pork chop, fresh seafood and our exclusive Creekstone USDA Prime all-natural steaks. Enjoy seasonal outdoor seating.

location:
911 20th Avenue South
Nashville

615.321.3043
pansouth.net

Short Sale/Foreclosure!

2010-03-29T14:04:00.000-07:00

The Fine Living Group of Nashville now has a certified short-sale and foreclosure specialist. Please contact us if you are buying/selling; we would love to share our knowledge and expertise with YOU!

8 Tips to Take Advantage of the Home Buyer Tax Credit before Time Runs Out

2010-03-29T08:49:00.000-07:00

RISMEDIA, March 27, 2010—RE/MAX agents report that the home buyer tax credit currently can deliver meaningful savings, but only for those who, at a minimum, have a binding contract to purchase a home in place on April 30, 2010. With that deadline bearing down, potential buyers who want to capture the tax credit had better get serious about home shopping.

“It is certainly possible to find a great home and get it under contract in a month or less, but doing it requires intense focus on the part of both the buyer and the buyer’s real estate agent,” said Jim Merrion, regional director of the RE/MAX Northern Illinois real estate network.

Two versions of the tax credit are still being offered: a maximum credit of $8,000 for first-time buyers (and those who last owned a home 3 or more years ago), as well as a $6,500 credit for current homeowners. Either way, the credit applies only to the purchase of a new principal residence costing $800,000 or less, and there are income restrictions and other limitations, including a requirement to close the sale before July 1.

How can buyers eager to capture the tax credit streamline their home shopping?
Here are some suggestions:
1. Get to Know Your Market: Buyers can do that using Internet sites that permit you to see the homes currently on the market, and by finding a good real estate agent who is ready to expedite the shopping process. “A capable agent can guide buyers through the home search process and save them a lot of time,” contends Debbie Laskowski of RE/MAX Select in Chicago. “New listings can be emailed to buyers as they are posted, and buyers should stay on top of the market on a daily basis, seeing what properties are coming onto the market and which ones have sold.”

2. Line Up Your Financing: Talk to a reputable lender right away and go through the pre-approval process. That will tell buyers quickly how much they can borrow. At today’s extremely low interest rates, that amount may be more than many buyers imagined. But either way, the process will help buyers determine how much they are willing and able to spend on the home.

3. Start Narrowing Your Search: With a large inventory of homes to choose from in the current market, buyers won’t have time to look at everything in their price range. By establishing specific criteria of the home they want, buyers can screen out homes that won’t fit their needs. “If you can give your real estate agent answers to two questions: Where do you want to live, and how much can you invest, you should be well on your way to a successful home search,” said Merl Carberry of RE/MAX Suburban in Arlington Heights, Ill.

“When it comes to geography, buyers should factor in their daily commute. Few of us want to be more than 45 minutes from work. If buyers need access to public transit, then that also shapes their choice, and if they have children, schools are going to be a factor. Ideally, you can narrow you search to one or two communities rather quickly.”

4.Separate Needs from Wants: Buyers can look at fewer homes if they can tell their agent what features the home they buy must have and what features would be nice but aren’t required. “When it comes to must haves, start with the basics,” recommends Dan Bundy of RE/MAX Center in Grayslake, Ill. “How many bedrooms are needed? Is a separate home office essential or just desirable? Do you require a basement? Will a two-car garage be sufficient, or do you need something larger? And don’t forget to consider the type of home. Are you interested only in a traditional two-story single-family detached dwelling, or would a ranch plan work just as well? And what about a townhouse?”

5. Consider Condition: In today’s market, many of the best values are foreclosed homes that aren’t in perfect condition. Buyers should decide up front if they are willing to tackle a home that needs work, and if so, how much.

“Buyers often have a hard time articulating what they will accept when it comes to condition,” explained Jim Hannigan of RE/MAX Properties in Western Springs, Ill. “That’s why it is important for a buyer to get out and walk through some properties with their agent as soon as possible. Buyers’ reactions give an agent the clearest picture of their priorities.”

6. Keep Things in Perspective: As nice as it may be to get the tax credit, don’t let the desire to do so completely control your home search. “Some buyers are quick decision makers, and others aren’t,” noted Debbie Laskowski. “If you like to mull over important decisions, take the time you need. The tax credit is a great incentive, but an $8,000 credit equals just 2.5% of the price of a $320,000 home. Buying the wrong home can end up costing you a lot more.”

7. Leave Time to Handle Standard Contingencies: The typical purchase contract may have several contingency clauses, for such things as a home inspection, attorney’s approval, obtaining financing and even the sale of the buyer’s current residence. Fortunately, standard contingencies in a contract won’t prevent it from qualifying for the tax credit, according to Dan Bundy of RE/MAX Center.

However, “the more contingencies you have in a contract, the greater the risk that it won’t close,” said Bundy. For example, if an issue arises in the home inspection, and it can’t be resolved, the buyer may want to find another house, but doing that after April 30 will mean losing the tax credit. Allowing time to work through the contingencies before the deadline reduces that risk.

8. Be Careful of Short Sales: If the home you want to buy is offered as a short sale, qualifying for the tax credit may become more difficult. “Short sales require that purchase offers be approved by both the seller and the sellers’ lender, and lenders often are slow about responding,” said Merl Carberry of RE/MAX Suburban. “Waiting for lender approval could leave you without a binding contract on April 30.”

Money May be Tight, But Homeowners Still Investing in Great Outdoors

2010-03-26T08:05:00.000-07:00

Homeowners love their yards. They plant gardens, create cozy areas for entertaining, and install decorative elements that they’re as happy to look at from the kitchen window as they are from their chaise lounge.

And despite a weak economy, Americans are expected to continue this love affair with the world outside their door—and perhaps spend a little more time in it as they plan to spend their summer vacations at home.

About 94% of residential landscape architects polled by the American Society of Landscape Architects earlier this year said that outdoor living spaces, including cooking and entertaining areas, would be popular in 2010. That said, improvements are expected to have few frills as homeowners stick to the basics in this cool economy.

“Homeowners want to create a sense of place for their family, friends, and neighbors to enjoy outside, but an uncertain economy means many will dial back some of the extra features we’ve seen in past years,” said Nancy Somerville, executive vice president for the group.

According to the survey results, some of the most popular features this year include: outdoor seating and dining areas, including benches and seat-walls or weatherized outdoor furniture, as well as fire pits and fireplaces, the classic outdoor grill and outdoor counter space. More lavish outdoor kitchen appliances, including refrigerators and sinks, are expected to be less popular, as are stereo systems and outdoor heaters. Survey results found a growing interest in low-maintenance landscapes and native plants. There’s also a continued resurgence of the home garden.

While consumers may be planting more as a way to have fresher produce or so they can know where their food is coming from, there’s also an economic driver: According to the National Gardening Association, a well-maintained food garden yields an average $500 return, considering a typical investment and the market price of produce.

A growing market
The interest in spending time outside is likely to beget more products designed for indoor/outdoor use in the near future, according to Rob Tannen and Mathieu Turpault, of Bresslergroup, a product-development firm.

One of the products they imagined: a tray container system that people could take into the garden to collect fruits and vegetables, adapt to fit the sink for cleaning the produce and slide into a refrigerator as you would a crisper drawer. Another concept was a grill with seating built around it, allowing cooks to entertain friends as they work.

Technology will likely play a larger role outdoors, too, Tannen said. It’s not far-fetched to imagine a shed with solar roofing panels that allow you to charge pieces of large lawn equipment, as easily as you might dock your Dustbuster inside the house. Or using iPod apps in the garden to learn how to best take care of a plant, he said.

Already, technology has entered some gardens. EasyBloom, a product that hit the market in 2008, is a sensor that you stick in the ground to collect information about the soil. You then connect it to a computer via a USB port, where collected information is analyzed to help determine what plants will thrive in that area. The tool also can diagnose problems with an existing plant. “People get bummed out when a plant is not doing well,” said Matt Glenn, chief executive of PlantSense, the company that sells EasyBloom. “If you have a rose bush, put the sensor next to the rose bush and the sensor will look at the world the way the rose does.” You’ll quickly learn, for example, if it isn’t getting enough sunlight or has been over-watered—which can be useful for the growing ranks of novice gardeners.

Adding appeal
When designing any outdoor area, it’s important to create a series of places that you can inhabit, whether it’s a covered space to entertain in or a vegetable bed to attend to, said Sarah Susanka, an architect and author of The Not So Big House series of books. Don’t forget your garden’s view from the inside either, she added.

“When I was designing my garden, I designed a view from my kitchen window,” so it could be enjoyed while standing at the kitchen sink, she said. “If you can see something that you find attractive day after day, you’re much more likely to sit out there,” she added.

And while many homeowners are making these outdoor improvements to their homes so they can enjoy them—especially in a real estate market where moving to another home is financially difficult for some families—a well-planned and maintained garden and outdoor area will serve an owner at the time of resale too.

“When you have a beautiful garden, someone will fall in love with it. In fact, it’s what they’re purchasing—more than the house even,” Susanka said.

Arbors, water features such as fountains, pergolas and decks are expected to be the most popular outdoor structures for homeowners this year, according to the architects group. And making an investment in a deck, for example, might set an existing home apart from a newly constructed one, said Edie Kello, director of marketing for Fiberon, a company that manufactures composite decking material.

“Fifteen to 20 years ago, most builders were putting on decks. A lot of construction builders these days aren’t building decks,” Kello said. “I think it’s a cost factor,” she said, adding that when builders were mass producing during the boom years—building as quickly and cost-effectively as possible—home buyers would often get only a stoop outside their door.

New Fannie Mae, Freddie Mac Structures Should Ensure Availability of Mortgage Capital and Protect Taxpayer Dollars, Says NAR

2010-03-25T10:40:00.000-07:00

Washington, March 23, 2010

Government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac should be restructured as government-chartered, non-shareholder owned authorities, the National Association of Realtors® said in congressional testimony today.

“We want to ensure a flow of capital into the mortgage market regardless of the state of the market or economy,” Vince Malta, NAR vice president and liaison to government affairs, testified to the House Financial Services Committee. “The new Fannie and Freddie must ensure there is always mortgage capital available for creditworthy buyers and that taxpayer dollars are protected.”

In outlining NAR’s proposal, Malta cautioned Congress and the administration about moving too quickly in restructuring the GSEs. “The housing recovery is still too fragile for the government to completely step away, and any disruption in the marketplace now by doing something too radical would be harmful,” he said. “Our goal is to help Congress and our industry design a secondary mortgage model that will serve America’s best interest today, and in the future.”

Neither a fully privatized entity nor a fully nationalized structure for the secondary mortgage market giants effectively addresses the critical issues of loan availability and taxpayer protection, he said. A fully private entity would foster mortgage products more aligned with business goals rather than the nation’s housing policy for consumers. “In difficult markets, like today’s, private lenders have not been willing to make loans without government backing,” said Malta.

A fully federal structure would put taxpayers at risk. “We want to eliminate any scenario that would place taxpayers on the hook to protect these entities. And to combine the two, or merge them with Ginnie Mae, would remove competition in the secondary market, and the new entity could lose focus on it missions to serve low- and moderate-income families and maintain liquidity in the mortgage markets,” he said.

The new authorities should be subject to tighter regulations on products, profitability and minimal, retained portfolio practices in a way to ensure protection of taxpayer monies. The new entities would also concentrate on standard mortgage products that are the foundation of the housing finance market.

“While that might curtail some private participation and alternative products in this market, we believe privates will offer innovations that meet consumer needs. The new entities would focus on safe mortgage products, including 15- and 30-year fixed rate mortgages and traditional adjustable rate mortgages.”

Restaurant Wednesday

2010-03-24T09:13:00.000-07:00

At Noshville, Authentic New York Delicatessen, the goal is to prepare and serve the highest quality food in a friendly, comfortable atmosphere. Noshville has four convenient locations, and the house rules are simple: "Check your cares at the door, order with reckless abandon, and indulge your senses in the life that is Noshville"

Breakfast is served all day, along with robust delicatessen sandwhiches, hearty homemade soups, refreshing salads and delicious desserts. Voted Best Delicatesssen since 1996. Noshville's friendly professional staff, comfortable atmosphere and great food will keep you coming back for more. "Make Your Mother Happy...Eat and Enjoy!"

Locations:
Cool Springs, Green Hills, Midtown, Noshville Airport
noshville.com

4 Options to Stop the Spread of Negative Home Equity

2010-03-23T11:18:00.000-07:00

RISMEDIA, March 23, 2010—(MCT)—With home prices expected to keep falling in many parts of the country, experts said finding a fix for the underwater crisis will be difficult. Banks can’t afford to bail out homeowners without another bailout from the government. Even if federal help comes—either for the homeowner directly or for banks—taxpayers ultimately will be on the hook for the debt. Do nothing, and homeowners and communities continue to suffer.

One economist said it all boils down to one thing: sharing the pain. “At the end of the day, someone has to pay for this problem—either the lender, the homeowner or the public pays,” said Mark Zandi, chief economist for Moody’s Economy.com. “It is really about divvying up the cost, and that is very difficult politically to do.”

The Obama administration said last month it would allocate $1.5 billion to five states to create programs that target unemployed homeowners struggling to avoid foreclosure, as well as people underwater on their mortgages. The programs would also focus on helping people with second mortgages modify their loans.

Here’s a look at some other options and what experts say about them:

Principal reductions
One way to solve the negative equity problem is to simply get rid of it. That would require banks to modify loans—and write down the principal owed to reflect a home’s value on the current market. Proponents of this solution argue that it is more costly to continue the cycle of foreclosures. But lenders would face large losses if they wrote down large portions of their loans.

Zandi said some lenders are doing this when it makes sense. Under the Obama administration home loan modification program, lenders can write down or defer principal if the borrower’s debt-to-income ratio is greater than 31%. Principal write-downs typically are being done when the homeowner wants to stay in the house and the lender doesn’t think it can sell the house to recoup what is owed.

He also predicts lenders will engage in more short sales, where they write down the difference between what is owed on the mortgage and what a buyer is willing to pay, to avoid costly foreclosures.

Julia Gordon, senior policy counsel for the nonprofit Center for Responsible Lending, agrees that principal reduction is one of the better ways to start healing the housing market.

But it gets complicated when there are second mortgages or lines of credit, common when economic pressures left little equity in some people’s homes. She said there is often a conflict of interest when the mortgage, or first lien, is held by one lender and the second is held by a different one. Lenders often don’t want to approve reducing principal on the first lien unless the second lien holder also takes a hit. “If the second liens disappear, that would clear servicers to do more principal reductions,” she said.

Rick Sharga, senior vice president of RealtyTrac Inc., an Irvine, Calif.-based foreclosure website, said he doubts that banks will write down principal in large numbers. “Many are in a capital position where they can’t afford to do that,” Sharga said. “The glimmer of hope is we figure 2010 will be the peak of foreclosure activity.”

RealtyTrac expects 3.5 million properties nationally to receive a foreclosure filing this year, up from 2.8 million last year.

Stabilize home prices
Gail Madziar, spokeswoman for the Michigan Bankers Association, said some banks are even leasing homes they foreclosed on back to the original owners to help stabilize home prices and neighborhoods.

Another way to stabilize prices is to control the release of distressed inventory onto the market. Banks have been doing this in recent months to slow the erosion of home prices and minimize the losses they record on their books.

Help for unemployed workers
The Mortgage Bankers Association announced recently that it was considering a program to help qualified borrowers who have lost their jobs so they can stay in their homes while they seek new employment.

The forbearance program would have loan servicers reducing the borrower’s mortgage payment for up to nine months. The payment would be reduced to an affordable level based on household income.

John Courson, president and CEO of the association, said that the average U.S. worker is unemployed for up to seven months and that is a long time for a homeowner to stay current on the mortgage with such a large drop in income.

“Further, borrowers with such a precipitous drop in income can’t qualify for most loan modification programs, so we are looking for ways to allow those borrowers to keep their homes while they look for another job,” he said.

The association has asked the government to add this tool to the Home Affordable Modification Program to help the swelling ranks of unemployed people.

Gordon of the Center for Responsible Lending said another solution might be to provide a low-cost loan fund like one in Pennsylvania that unemployed homeowners can tap into to pay their mortgages. The Homeowners’ Emergency Mortgage Assistance Program was created in 1983 to prevent homelessness in Pennsylvania by offering loans of up to $60,000 for 24 months. In times of high unemployment, the loans extend to three years.

Freeze foreclosures
Michigan state Sen. Hansen Clarke, a Democrat who sponsored 90-day foreclosure moratorium legislation that took effect last July, said he thinks judges should be given the power to temporarily suspend foreclosures for up to two years. “Look at all the people who have had to walk away from their houses. I get so angry when I see these neighborhoods, because action could have been taken,” Clarke said.

Gordon said a temporary suspension could be helpful if servicers use that time to evaluate the homeowner for a loan modification. Now, the foreclosure process and evaluation process generally are happening at the same time, sending mixed messages to homeowners.

Tim Ross, president of Royal Oak, Mich.-based Ross Mortgage, said that more mortgage loan servicers are eager to keep people in their homes these days and that could go a long way to solving the negative equity problem.

On top of that, new household formation, which occurs when young adults leave home to set up their own places or when people get married or divorced, continues to create demand for new homes. And with new home building at a standstill, demand driven from household formation should absorb what’s in the market, he said.

“Despite the fact that we have outmigration, there are fundamentals in place that will ultimately rescue us,” Ross said.

Fixer-Upper Financing: 203k Program Provides Buyers with Renovation Funds

2010-03-22T11:46:00.000-07:00

The word “as-is” can indeed be one scary phrase. Especially when buying a home in today’s market where foreclosures and short sales that need fix-up work are plentiful.

But a little-known Federal Housing Administration (FHA) loan program that’s been around since 1978 can help take the sting out of “as-is.” Only 219 borrowers took advantage of the FHA’s 203k program in 2009. Not that many lending and real estate professionals are aware of the program, say observers.

Last year, Tom Meyer found a classic Oakland, Calif., home built in 1925 near Mills College he liked a lot. As a short sale it was priced right and about half the original asking price. Trouble was, the place needed some fix-up work—foundation improvements, dry rot work, a new roof over the garage and other improvements.

With the help of the FHA’s 203k renovation financing loan program, Meyer folded about $100,000 worth of repairs and improvements into his $422,000 mortgage. He had bought the home for $320,000. “I would not be able to pay a contractor $100,000 and buy a house at the same time,” said Meyer, who works in corporate media at Shaklee’s Pleasanton headquarters. “It had been essentially allowed to start falling apart over the last 20 years.”

He had rented in San Francisco for 25 years before moving into his new digs last September with his girlfriend, Cathy Keating. “We like old houses, and a great benefit of this program is that it helped us keep a beautiful but deteriorating house from deteriorating further. With the work we did, we expect it to still be standing and beautiful 80 years from now,” he said.

Renovation financing through the 203k program allows the costs of needed repairs and improvements to be included in the FHA federally-insured loan amount instead of having the buyer come up with cash or a separate loan to do the work.

“This is a perfect loan for an as-is situation,” said Kristine Marr, a loan officer with Prospect Mortgage in Lafayette, Calif. “It’s not a new loan program, although I think it’s going to have a lot more use today because we have so many foreclosures and bank-owned properties. You go into lots of homes and see people have yanked out stoves and ovens and fixtures and sinks.”

The work has to be done within six months after escrow closes. Borrowers have the option of putting up to six months of mortgage payments on the end of the loan if they don’t want to live in the house while the work is being done.

“Renovation financing is a program that allows you to not only finance the purchase of a home but finance any repairs and/or improvements. It provides buyers with a responsible way to purchase a fixer-upper property,” said Luis C. Munoz, who helped Meyer with the loan and is a renovation loan specialist with the Oakland branch of Mason-McDuffie Mortgage Corp. Munoz also gives presentations about the program at monthly home ownership workshops sponsored by the Unity Council, an Oakland-based nonprofit.

At a time when equity loans are hard to get, the program can also be used as a refinancing vehicle for borrowers who want to do repairs and improvements, provided the value of the home is greater than the value of the loan. “At the same time as you refinance, you pop in the extra dollars you need for whatever you want to do,” Marr said.

FHA home loans require certain health and safety standards be met and that needed repairs identified during the inspection process be completed before escrow closes. However, minor repairs and improvements costing between $5,000 and $15,000 can be done after escrow closes for borrowers who opt for a streamlined repair program.

A 203k loan can help buyers finance both minor and major repairs and improvements. It can also help buyers compete with investors when bidding for short sales and foreclosures, said Sheri Powers, director of the Homeownership Center at Unity Council.

The loans can also be used to pay for improvements such as new appliances, second-story additions, remodeled kitchens and bathrooms, and skylights, just to name a few examples. “Property repairs cost money and they want to make sure people using their loan program are going to be in the home in long run and not just the short run,” Powers said.

The loans have become more popular since home prices started falling and FHA lending limits were raised a couple years ago but are still a tiny sliver of overall FHA loan volume. Last year, 203k loans accounted for 219 mortgages in the Bay Area, compared to 35 in 2008, one in 2007 and none in 2005 and 2006, according to Department of Housing and Urban Development statistics. “It’s making a comeback,” said Powers.

Marr said that 203k financing is not for everyone. A buyer will have to work with contractors and may have to wait several months before moving in, she said. And there is no guarantee they won’t be outbid by an investor for the property. “A lot of listing agents are preferring the investors, because the investors tend to be all cash or 50% cash. That’s always hard to compete with,” she said.

Gwyneth Paltrow Loves Nashville!

2010-03-19T10:58:00.000-07:00

Please check out this blog for Gwyneth's best pick's in Nashville!

10 Staging Tips to Help Your Home Sell

2010-03-19T07:43:00.000-07:00

Want to sell your home? Get out the bucket, mop and Mr. Clean. The key to making a positive first impression is simple, said Sandra Rinomato, host of HGTV’s popular “Property Virgins” show.

“Get it clean, clean, clean,” said Rinomato. “If your house isn’t clean, it instantly sends up negative thoughts that the home is not well maintained. If your house is spotless, you’re ahead of the game,” she said.

But don’t stop there, advised Rinomato. To increase your chances of making a sale, “stage” the house to make it as attractive as possible. Until recently, “Staging meant pulling out all the stops—setting the dining table with your best china and crystal, arranging flowers, lighting candles,” she said. “Now we take the minimalist approach. Basically, you want to strip the house to its bare essentials, depersonalize it so potential buyers can superimpose themselves and their lifestyle on the house.”

Rinomato offered the following tips for staging a home:

1. Visit model homes and examine shelter magazines for inexpensive decorating ideas. Always keep in mind you are not decorating for yourself but for the general public.

2. Start with the outside. Give the house a fresh coat of paint, add shiny hardware to the front door and plant a few flowers to send a subliminal message the house is loved and well cared for.

3. Declutter every room to make it look larger. Get rid of family pictures, trophies and knickknacks. Closets and drawers should be no more than 30% full.

4. Invest in eco-friendly but bright lights. Open the drapes or remove them completely. “Light, bright rooms give the impression this is a happy place—and everyone wants to move into a happy place,” said Rinomato.

5. Feature only a few pieces of furniture with mainstream appeal. Pull pieces away from walls to make rooms look bigger.

6. Make sure a room’s primary use is obvious. A bedroom should look like a bedroom, not an office, hobby center or gym.

7. Bedrooms and kitchens are difficult to stage because they are in daily use, but make the effort. Clear everything off the counters and nightstands, roll up the rugs and hide the laundry hamper. Buff the cabinets with car wax and clean under the sinks. Invest in pristine white bed linens and towels.

8. Minimize the “pet effect.” Remove food bowls and litter boxes to the utility room. Deodorize thoroughly.

9. Organize the utility room and garage. Hang up the bicycles, roll up the hose. Renting a storage locker is worth the cost if it helps you sell faster and for a higher price.

10. Once your house is staged, invite your friends or Realtor over and walk them through to get an objective opinion.

Short Sales: The Rise, the Revenue, the Reality

2010-03-18T10:37:00.000-07:00

Distressed homes are still accounting for more than a third of all sales nationwide, providing evidence that real estate recovery is still fragile at best. While there is no magic bullet for understanding or navigating the short sale process, Realtors who excel at managing these transactions will find success in today’s market. In this month’s Power Broker Roundtable, industry leaders Terry Hankner, Helen Hanna Casey and Larry Hibler discuss how to take advantage of the distressed market.

Moderator:
Steve Brown, Special Liaison for Large Firm Relations, NAR

Participants:
Terry Hankner, President Comey & Shepherd REALTORS®, Cincinnati, Ohio
Helen Hanna Casey, President, Howard Hanna Real Estate Services, Pittsburgh, Pennsylvania
Larry Hibler, Broker, RE/MAX Achievers, Phoenix, Arizona

Steve Brown: While sales dropped slightly in December of 2009, the overall rate of existing home sales at the close of the fourth quarter was 15% higher than it was in the year-ago period. The price median rose a bit to post the first year-over-year gain since 2007, as inventory continues to shrink. That is reason for optimism as we move into the spring sales season. But since distressed homes are still accounting for more than a third of all sales nationwide, it is safe to say that recovery is fragile at best—and that until the jobless rate improves, the success rate will be highest for those REALTORS® who excel at managing short sales.

But therein lies the rub. The truth is there is no magic bullet for understanding, much less navigating the muddy waters of the short sale process…although there is now some hope on the horizon thanks to the upcoming Home Affordable Foreclosure Alternatives Program (HAFA) developed by the Treasury Department. Designed to simplify and streamline the use of short sales, the expected benefits of HAFA include: allowing borrowers to receive pre-approved short sale terms before listing the property; requiring borrowers to be fully released from future liability for their first mortgage debt; and the use of standard processes, documents and deadlines in the short sale process. For more details, visit www.REALTOR.org/shortsales and remember that NAR also provides a dynamic Short Sales and Foreclosure Resource Certification (SFR) course to help educate members on this growing issue. More information can be found at www.realtorsfr.org.

Terry Hankner: Well, I don’t think there is any doubt that the problem begins with the lenders, who by and large have never clearly defined the issues or offered any reliable guidelines. What’s worse, their communication, in my opinion, has been lacking—excruciatingly slow and inconsistent.

Helen Hanna Casey: Yes, it’s been tough to even get a call back with any kind of timeliness, and that wears on everybody’s patience, agents, sellers and buyers. We try to get around that by relying on our most experienced agents—REO specialists who have long-time lender contacts and tend to have the best success rate.

Larry Hibler: The good news, at least in Arizona, is that we’re beginning to see some progress with that. Some lenders seem to be finally gearing up. We actually got one approval in seven days last month.

HHC: Amazing! How did that happen?

LH: Well, for one thing, we place a lot of importance on impressing the lender with the buyer’s strength and commitment. We submit only one contract at a time and the buyer has to put down non-refundable earnest money for a period of 60-90 days.

SB: What about seller issues?

HHC: We have high unemployment in Ohio, but I don’t think we had as much subprime lending or zero-down buying going on during the peak, so the problems may not be as dire here as in some areas. But all our agents are well trained in the financial alternatives so they can work with sellers who may be in trouble.

TH: The issues for us are disclosure, disclosure, disclosure, to be sure the sellers understand their options, whether short sale, foreclosure, loan modification or whatever. We use a program we call “Fresh Start,” which we present upfront as a for-profit entity designed to educate the seller, negotiate with the lender and handle any eventual sale of property. It took us two-and-a-half years to come up with the process, but we did do over 100 transactions last year, and our agents are not shy about referring business to this more experienced group.

LH: We’ve had good results using third party negotiators, who handle short sales for a flat fee. I’m comfortable with that from a liability point of view, and it takes responsibility off our agents.

HHC: It also takes the pressure off of having to deal with the banks ourselves. I don’t know whether some banks are just lagging in getting systems in place—like when there is a merger or acquisition—or whether they are deliberately stonewalling. Either way, it is exasperating.

SB: What needs to happen in order to see an improvement?

TH: Basically, the industry needs to do two things: the first is to reduce our risk in negotiating short sales, which is why disclosure is so important. The second is to hold lenders accountable for clarifying and articulating the ground rules. My worst nightmare is that, a year from now, some lender will come back after a seller and say, “we never really let you off the hook.”

HHC: I don’t think that’s going to happen unless there’s been fraud or collusion of some kind, but I do agree that disclosure is paramount, and that sellers would do well to seek legal counsel before they make a decision.

LH: I do think, though, that the banks are beginning to catch up with us and that the process shows signs of improving. I hope so, especially now that there is some stirring in the higher end of the market. Now we need to hope for continued improvement in the economy.

Restaurant Wednesday

2010-03-17T08:52:00.000-07:00

Sunset Grill

Located in the heart of Hillsboro Village, Sunset Grill is the jewel in the triple crown of Nashville's most successful independent restaurateur, Randy Rayburn. The California-influenced cuisine has remained contemporary and fresh for almost two decades with daily specials that lure diners off-menu. Sunset serves 65 wines by the glass and 500 by the bottle. Offering free shuttle service to downtown hotels.

2001 Belcourt Ave
Nashville

615.386.3663
sunsetgrill.com

NAR Urges Congress, Administration to Approach Changing FHA Slowly

2010-03-16T11:27:00.000-07:00

The National Association of Realtors® urged Congress and the administration to move cautiously before making changes to the Federal Housing Administration program that has served the needs of millions of American families for more than 75 years without needing a federal appropriation.

FHA remains financially strong because it has taken steps to ensure solid underwriting standards and responsible lending practices, said Charles McMillan, NAR immediate past president, in testimony before the House Subcommittee on Housing and Community Opportunity today.

“As the leading advocate for housing issues, NAR believes that one of the best ways Congress can help strengthen FHA is to quickly consider and pass legislation that would make current loan limits permanent,” McMillan said. “It’s important to note that higher balance FHA loans perform better than lower balance ones. While some argue that higher balance loans put taxpayers at risk, such loans actually strengthen the program and reduce risk to the fund.”

NAR strongly supports H.R. 2483, the “Increasing Homeownership Opportunities Act.” Current FHA loan limits are as high as $729,750 in high-cost areas, and are set to expire at the end of the year and revert to lower amounts, greatly hindering the housing recovery process. A decrease of current limits would adversely affect 612 counties in 40 states and the District of Columbia.

Explaining that FHA has played an important role in the recent housing and economic crisis by filing the gap left by private lenders, McMillan said FHA insured almost 30 percent of single-family mortgages in 2009 and more than 50 percent of first-time buyer loans. “Historically, FHA’s market share has hovered between 10 and 15 percent of all loans. And when the private market is strong enough to return, we welcome a reduced FHA market share,” he said.

McMillan said NAR strongly opposes H.R. 3706 that would raise the FHA downpayment. “While that would increase an individual’s investment in the home, it would not add a penny to FHA’s reserves and would disenfranchise many FHA borrowers,” he said.

NAR also opposes a new FHA initiative that increased the up-front mortgage insurance premium (MIP) from 1.75 percent to 2.25 percent because it adds to the closing costs home buyers already face. NAR supports legislation to reasonably increase the annual MIP to replace FHA capital reserves, but in turn, FHA should reduce the up-front premium due at the closing table.

McMillan said NAR was also concerned that FHA wanted to decrease seller concessions to 3 percent. Reducing seller concessions could put homeownership out of reach for many buyers, he said, because it could require buyers to pay more at closing.

McMillan applauded FHA’s stepped up enforcement and oversight of lenders making FHA loans. In 2009, FHA removed approval of or suspended 274 lenders. “Realtors® support adding more tools to help FHA protect borrowers and taxpayers,” he said.

Poll Shows Strong Support for Government Housing Initiatives

2010-03-15T11:10:00.000-07:00

RISMEDIA, March 5, 2010—Americans remain strongly committed to federal support for home buyers, according to a recent survey of U.S. households.

Roughly 68% of those polled said the government should continue to support housing, and 65% believe the government should be doing more to keep families from losing their homes to foreclosure.

The poll included both home owners and renters and was conducted for the National Association of Home Builders (NAHB) by RT Strategies, a non-partisan public opinion polling firm based in Washington, D.C. RT Strategies interviewed a representative sample of 1,000 adults nationwide by telephone using live interviewers on January 29-31, 2010. The sample included 170 interviews with respondents from cell-phone-only households.

Among those polled, some key groups said the government should continue to play a vital role in maintaining a healthy housing market. For example, 78% of all potential home buyers, including 81% of renters intending to buy a home in the near future, said the government should continue to support housing.

Roughly 65% of home owners said the government also needs to do more to keep families from losing their homes. Support for more foreclosure protection was not confined merely to current home owners. Among renters, 84% said the government needs to do more to helped strapped borrowers. This issue is particularly important to women, with 71% supporting greater foreclosure protection, compared to 58% of men.

Keeping families in their homes is also particularly important to first-time home buyers, as 78% of young adults under age 30 support greater foreclosure protection. And 69% of adults who are 30 to 44, the prime age range for move-up buyers, said they support more foreclosure protection.

Overall, roughly two-in-three respondents said they own their home. Among renters, about two-in-three intend to buy a home in the near future. In addition, 15% of current home owners intend to buy a home in the near future.

The poll asked respondents for their views regarding the Worker, Homeownership and Business Assistance Act of 2009 that extended a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence. The legislation, which was signed into law by President Obama in November 2009, also authorized a tax credit of up to $6,500 for qualified repeat home buyers. Overall, 8% of those surveyed said they intend to take advantage of this credit, while another 24% who might have been interested in using the tax credit said they cannot afford to purchase a home at this time. Of the 33% of respondents who said they are planning to buy a home (both renters and current home owners), roughly 17% said they intend to use the tax credit.

Financial concerns continue to be the greatest barrier to growth in the housing market. Among renters nationwide who aspire to own their own home, 39% simply don’t have the money to buy a home at this time, and another 20% said the primary obstacle is that they feel they cannot qualify for a loan. Larger economic issues also play a role, as 18% of those surveyed said that job security is the greatest obstacle they face in trying to buy a home.

Weakness in the housing market itself may be blocking some home owners who would like to buy a new home, as 29% of current home owners said their greatest obstacle to purchasing another home is their inability to sell their current home. Beyond that, among current homeowners who aspire to buy a new home, 7% feel trapped by a mortgage that exceeds the value of their current home, 14% fear that the value of a new home might fall after they make the investment, and 13% say home prices are too high to allow them to buy a new home at this time.

Even amid a housing market downturn, 40% of respondents said their home is their most valuable investment, twice the number who cite any other single investment–401k accounts, savings accounts and CDs, stocks and bonds, or mutual funds–as their leading family investment.

5 Tips for a Successful Home Remodel

2010-03-12T07:25:00.000-08:00

As spring approaches, many homeowners grow eager to start remodeling projects to update and refresh their surroundings. Before getting started, it’s a good idea to hire a professional remodeler for a workable plan and better results, according to the National Association of Home Builders (NAHB).

“A professional remodeler knows how to translate a homeowner’s dreams and budget into a beautiful reality,” said Donna Shirey, CGR, CAPS, CGP, president of Shirey Contracting in Issaquah, Wash. and 2010 chairman of NAHB Remodelers. “They have the expertise and skills to satisfy a customer while keeping the budget in check.”

Here are five tips for planning a successful home remodel that you can enjoy for many years to come.

1. Compile a list of home remodeling ideas and draft a budget for the work.
You likely have some projects in mind, such as modernizing the bathroom, renovating the kitchen, replacing windows or repairing the roof. Prioritize your wish list: Maybe you don’t have the budget for your dream remodel, but professional remodelers can maximize your dollars by doing the work in phases, suggesting budget-friendly products and materials and implementing creative design solutions.

2. Look for a professional remodeler to help plan the project.
Start by searching NAHB’s Directory of Professional Remodelers at www.nahb.org/remodel. You’ll get a list of nearby remodelers to contact. Asking friends and neighbors for names of qualified remodelers will also help you find a match for your project.

3. Check the references and background of the remodeler.
After you start speaking with remodelers and find one or two who match your project’s needs, be sure to conduct some background research by checking with the Better Business Bureau, talking to their references and asking if they are a trade association member (such as NAHB Remodelers). Remodelers with these qualities tend to be more reliable, better educated and more likely to stay on top of construction and design trends.

4. Agree on a contract.
Talk over the details of the home remodeling project and begin reviewing the contract. You’ll want to check the remodelers’ insurance coverage, ask about any warranties on their work, know who is responsible for obtaining any building permits and understand the process for making any change orders after the contract is signed. Make sure that you and your remodeler see eye to eye before you sign on the dotted line.

5. Take advantage of the energy efficiency tax credits.
If your remodel includes replacing windows or doors, adding insulation, installing new roofing, upgrading heating or air-conditioning units, updating the water heater or installing energy generating products (such as solar panels, heat pumps or wind turbines) then you can take advantage of federal energy efficiency tax credits through 2010 that will help defray costs and maximize your remodeling budget while reducing home energy bills.

U.S. Foreclosure Activity Decreases 2% in February 2010

2010-03-11T10:54:00.000-08:00

RISMEDIA, March 11, 2010—RealtyTrac, a leading online marketplace for foreclosure properties, released its February 2010 U.S. Foreclosure Market Report, which shows foreclosure filings—default notices, scheduled auctions and bank repossessions—were reported on 308,524 U.S. properties during the month, a decrease of 2% from the previous month but still 6% above the level reported in February 2009. The report also shows one in every 418 U.S. housing units received a foreclosure filing in February.

“The 6% year-over-year increase we saw in February was the smallest annual increase we’ve seen since January 2006, when we began calculating year-over-year increases, but it still marked the 50th consecutive month of year-over-year increases in foreclosure activity,” said James J. Saccacio, chief executive officer of RealtyTrac. “This leveling of the foreclosure trend is not necessarily evidence that fewer homeowners are in distress and at risk for foreclosure, but rather that foreclosure prevention programs, legislation and other processing delays are in effect capping monthly foreclosure activity—albeit at a historically high level that will likely continue for an extended period.

“In addition, severe winter weather appears to have temporarily slowed the processing of foreclosure records in some Northeastern and Mid-Atlantic states.”

Foreclosure activity by type
Default notices (Notices of Default and Lis Pendens) were reported on a total of 106,208 U.S. properties during the month, an increase of 3% from the previous month but down 3% from February 2009. Default notices were down 25% from their peak of more than 142,000 in April 2009 but were still more than three times the number they were four years ago in February 2006.

Foreclosure auctions (Notices of Trustee’s Sale and Notices of Sheriff’s Sales) were scheduled for the first time on a total of 123,633 U.S. properties, a decrease of 1% from the previous month but still 16% higher than the level reported in February 2009. Scheduled auctions were down 14% from their peak of more than 144,000 in August 2009 but were also about three times higher than the number reported in February 2006.

Bank repossessions (REOs) were reported on a total of 78,683 U.S. properties during the month, a 10% decrease from the previous month but an increase of 6% from February 2009. Bank repossessions were down nearly 15% from their peak of more than 92,000 in December 2009 but were at nearly twice the level reported in February 2006.

Nevada, Arizona, Florida post top state foreclosure rates
Nevada foreclosure activity decreased nearly 7% from the previous month and was down 30% from February 2009, but the state’s foreclosure rate continued to rank highest in the nation for the 38th month in a row. One in every 102 Nevada housing units received a foreclosure filing during the month—more than four times the national average.

Arizona and Florida documented nearly identical foreclosure rates, with one in every 163 housing units receiving a foreclosure filing in both states. Despite a nearly 21% decrease in foreclosure activity from the previous month, Arizona’s rate was statistically slightly higher than Florida’s rate and ranked second highest among the states.

California’s foreclosure rate ranked fourth highest among the states, with one in every 195 housing units receiving a foreclosure filing during the month, and Michigan’s foreclosure rate ranked fifth highest among the states, with one in every 226 housing units receiving a foreclosure filing.

Other states with foreclosure rates among the nation’s 10 highest were Utah (one in every 275 housing units), Idaho (one in 296), Illinois (one in 305), Georgia (one in 331) and Maryland (one in 407).

Six states account for more than 60% of national total
The six states with the most foreclosure activity accounted for 61% of the national total in February. California led the way, with 68,562 properties receiving a foreclosure filing during the month—down nearly 5% from the previous month and down 15% from February 2009.

Foreclosure activity in Florida increased nearly 15% from the previous month and was up more than 16% from February 2009. The state continued to post the nation’s second highest total, with 54,032 properties received a foreclosure filing during the month.

Increasing foreclosure activity boosted Michigan’s total to third highest among the states. A total of 20,028 Michigan properties received a foreclosure filing during the month—up nearly 14% from the previous month and up 59% from February 2009.

With 17,312 properties receiving a foreclosure filing, Illinois posted the fourth highest total, followed by Arizona, with 16,718 properties receiving a foreclosure filing, and Texas, with 12,638 properties receiving a foreclosure filing in February.

Other states with totals among the 10 highest in the country were Georgia (12,177), Ohio (11,286), Nevada (11,035), and Maryland (5,732).

Divergent trends in metro areas with top 10 foreclosure rates
Metro areas in the Sun Belt states of Nevada, Florida, California and Arizona continued to dominate the top 10 highest foreclosure rates among metropolitan areas with a population of 200,000 or more, but activity trends in these areas varied considerably.

The Las Vegas metro area documented the highest metro foreclosure rate, with one in every 90 housing units receiving a foreclosure filing during the month, despite a 9% decrease in foreclosure activity from the previous month.

Six of the other metro areas in the top 10—all in California or Arizona—also reported decreasing foreclosure activity from the previous month. The biggest monthly decrease among the top 10 was in the Phoenix metro area, where foreclosure activity dropped nearly 18%.

In contrast, the two Florida metro areas in the top 10 both posted substantial monthly increases in foreclosure activity. The Cape Coral-Fort Myers metro area saw a 31% increase in foreclosure activity from the previous month, giving it the second highest metro foreclosure rate—one in every 92 housing units receiving a foreclosure filing. An increase of nearly 66% in foreclosure activity from the previous month helped boost the foreclosure rate in Port St. Lucie to sixth highest.

Rumba

2010-03-10T08:50:00.001-08:00

Tropical flair and low-lit intimacy combine with top-notch Latin, Asian and Caribbean cuisine at rumba, where globe-trotting tastes have found a home on West End. Sip a hand-muddled mojito or caipirinha on one of the double patios or at the main bar, then relax in a secluded booth with a meal for afar.

Location:
3009 West End Ave
Nashville

615.321.1350

Real Relief for Upside Down Home Owners

2010-03-09T11:36:00.000-08:00

RISMEDIA, March 9, 2010—Forget loan modifications, short sales, and “jingle mail”! If you are one of an estimated 50 to 60 million homeowners whose mortgage is part of a securitized pool, the law is on your side and everyday more and more people are deciding to exercise their rights with regard to the documents they signed.

There is much more contained within those documents and pooling and servicing agreements that govern the pools than just the borrowers promise to pay. And, there are laws that must be adhered to by the lender of the money.

As it turns out, virtually all of the securitized private label loans were part of a massive and ongoing fraud upon both the borrower and the investor. And, the fraud continues as the pretender lenders force more defaults, stop making payments to the pools, collect on the credit default swaps, and top it all off by seizing the underlying assets (only if they can make additional money on them) and keeping any proceeds for themselves.

What borrowers and investors agreed to and what they actually got are at odds, and these discrepancies raise serious legal issues including, but not limited to, Truth In Lending Violations, Real Estate Settlement Procedures Act Violations, Fraud, Bait and Switch, illegal kickbacks involving the borrower, and out right fraud and conversion upon the investor.

In the cases of loans such as a 2/28, pick-a-pay and option arm, their very existence is prima facie evidence of predatory lending and fraud upon the investors.

Nor are we talking about a small amount of money or a technicality. We are talking about a complex system of deceit by financial intermediaries that can turn a single modest home loan into millions of dollars in profit for them.

The Worse the Loan the More They Can Make

Suppose a buyer actually qualifies for a $300,000 fully amortized, fixed rate loan at 5%.

But, right at the end of the process the underwriter calls the loan officer and says something like this;

“We’ve just had a change to our underwriting guidelines and we aren’t going to fund the loan.”

This is really funny because the loan is already funded. Now, it’s time to kick up the profits. Of course, the loan officer’s emotions run the full range from disbelief to anger to fear. “Why?” She pleads.

Underwriter: “His ratios. He needs a lower monthly payment. Resubmit in our new super-duper, magical flex loan with the built in implosion feature.”

Now, before we run out and lynch a bunch of loan officers, this is what they were given to work with and trained to do. They were as indoctrinated into this as if they had drunk the cool aid. If it makes you feel better, they got pushed into these loans too. I get a lot of email from loan originators and real estate agents who often feel embarrassed about their choices, but back then we didn’t know that it was just a giant Ponzi scheme.

The loan product is determined by an underwriter. The perception is that the only purpose for underwriting is to determine the credit worthiness of the borrower and the value of the security. But, the underwriting process actually yields far more valuable information. It also reveals the borrower’s default probability and numerous details about their behavior. Knowledge of the borrower’s behavior combined with negative features in the loan allowed insiders to project when the loan would default.

Armed with this information, the underwriter is able to “tweak” the loan to increase the Yield Spread Premium and the Service Release Premium, as well as, increase the likelihood of collecting on the credit default swaps. That is the process of putting you into the most profitable loan possible. And, it is where the real predatory lending takes place.

Back to our borrower. By bumping our highly qualified borrower from 5% to 8%, they only increase the likelihood of default; they are able to extract an enormous undisclosed Service Release Premium and a Yield Spread Premium. The Yield Spread Premium is supposed to be disclosed, but often isn’t.

The Service Release Premium is where the real money is, and it’s hidden. The investor provides $480,000 to the financial intermediary in exchange for a five percent annual return of $24,000 plus a guaranteed return of principal.

The financial intermediary only loans our borrower $300,000, but when the rate adjusts to 8%, the investor has his $24,000 annual income, the financial intermediary pockets a $180,000 Service Release Premium, makes up the initial shortfall in the pool payments and buys credit default swaps.

So this is where we really are.

They are not banks. They call themselves banks, but they aren’t banks.

They did not lend you any money. They loaned you someone else’s money.

You don’t owe them any money. Maybe you owe a pension fund or something, maybe not.

You may not owe anyone any money. If the investors recouped their losses from TARP funds, you no longer owe them anything.

They may owe you money. If you were the victim of predatory lending, your damages could be into the hundreds of thousands of dollars, plus legal expenses

They may have no legal right to foreclose on you.

You have a legal right under the terms of your loan agreement and common law to raise the above issues with the true holder of the original note you signed.

Why? Because securitized loans presented an opportunity to commit fraud on both the true lender by skimming, and the borrower by convincing him he should accept a far more expensive loan than the one for which he qualified.

The financial intermediary wrote the pooling and servicing agreements and the credit default swaps. The terms of the pooling and servicing agreement allow the financial intermediary to stop making payments on all loans in the pool and keep the revenue stream from the performing loans when a default occurs within the pool. It also allows the financial intermediary to collect on the credit default swap on the entire pool which is multiples of the loan value of the entire pool.

The game was rigged, but they overlooked one little thing; The Uniform Commercial Code, Chapter 3, 47-3110. The Uniform Commercial Code is replicated in virtually every state, and this section governs who may enforce a note.

Look at this a different way. Suppose you wanted to pay off your loan, but you wanted to be absolutely certain that the money would go to the rightful party so that you would not be subject to someone showing up later claiming you never paid off your note. You have a legal right to know who that party is.

If they cannot satisfy this provision of the UCC, they cannot proceed to foreclose. If you wanted to take the fight to them and see if they can produce the note, this is the law you need to pursue.

The Fine Living Group of Nashville

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