S&P/Case-Shiller: Home Prices Closed Out a Strong 2012
Data through December 2012, released today by S&P Dow Jones Indices for its
S&P/Case-Shiller Home Price Indices, the leading measure of U.S. home
prices, showed that all three headline composites ended the year with strong
gains. The national composite posted an increase of 7.3 percent for 2012. The
10- and 20-City Composites reported annual returns of 5.9 percent and 6.8 percent
in 2012. Month over- month, both the 10- and 20-City Composites moved into
positive territory with gains of 0.2%; more than reversing last month's losses.
In addition to the three composites, nineteen of the 20 MSAs posted positive
year-over-year growth - only New York fell.
The S&P/Case-Shiller U.S. National Home Price Index, which covers all nine
U.S. census divisions, recorded a 7.3 percent gain in the fourth quarter of
2012 over the fourth quarter of 2011. In December 2012, the 10- and 20-City
Composites posted annual increases of 5.9 percent and 6.8 percent,
respectively.
"Home prices ended 2012 with solid gains," says David M. Blitzer, Chairman of
the Index Committee at S&P Dow Jones Indices. "Housing and residential
construction led the economy in the 2012 fourth quarter.
In December's report all three headline composites and 19 of the 20 cities
gained over their levels of a year ago. Month-over-month, 9 cities and both
Composites posted positive monthly gains. Seasonally adjusted, there were no monthly
declines across all 20 cities.
"The National Composite increased 7.3 percent over the four quarters of 2012.
From its low in the first quarter, it surged in the second and third quarter
and slipped slightly in the 2012 fourth period. The 10- and 20-City Composites,
which bottomed out in March 2012 continued to show both year-over-year and
monthly gains in December. These movements, combined with other housing data,
suggest that while housing is on the upswing some of the strongest numbers may
have already been seen.
"Atlanta and Detroit posted their biggest year-over-year increases of 9.9
percent and 13.6 percent since the start of their indices in January 1991.
Dallas, Denver, and Minneapolis recorded their largest annual increases since
2001. Phoenix continued its climb, posting an impressive year-over-year return
of 23.0 percent; it posted eight consecutive months of double-digit annual
growth."
As of December 2012, average home prices across the United States for the
10-City and 20-City Composites are back to their autumn 2003 levels. Measured
from their June/July 2006 peaks, the decline for both Composites is
approximately 30 percent through December 2012. For both Composites, the
December 2012 levels are approximately 8-9 percent above their recent lows seen
in March 2012.
In December 2012, nine MSAs and both Composites posted positive monthly gains,
led by Las Vegas with an increase of 1.8 percent. Eleven cities declined with
Chicago posting the largest negative monthly return of 0.7 percent.
Atlanta and Detroit remain the only three cities with average home prices below
their January 2000 levels. Detroit with an 80.04 print is 20 percent below its
January 2000 level.
"The high end of the market is doing well and while it's a fashionable thing to
say that it is because of foreign money, I suspect the actual reason is that
the one percent have gotten 122 percent of the recovery," says USC Lusk Center
for Real Estate Director, Richard Green. "Since the low end of the market is
being targeted by investors, it's the middle market that needs help -
particularly in the form of higher income - if it is going to have a sustained
recovery."
For more information, visit www.homeprice.standardandpoors.com.
Janet & Graham Ford
Phone: (918) 798-4428
4105 S. Rockford Ave
Tulsa, OK 74105
www.janetford.com
info@janetford.com
Home Prices in 2012: Best
Year-on-Year Gain in Six Years
CoreLogic®, a leading residential property information, analytics and services
provider, recently released its December CoreLogic HPI® report. Home prices
nationwide, including distressed sales, increased on a year-over-year basis by
8.3 percent in December 2012 compared to December 2011. This change represents
the biggest increase since May 2006 and the 10th consecutive monthly increase in
home prices nationally. On a month-over-month basis, including distressed
sales, home prices increased by 0.4 percent in December 2012 compared to
November 2012. The HPI analysis shows that all but four states are experiencing
year-over-year price gains.
Excluding distressed sales, home prices increased on a year-over-year basis by
7.5 percent in December 2012 compared to December 2011. On a month-over-month
basis, excluding distressed sales, home prices increased 0.9 percent in
December 2012 compared to November 2012. Distressed sales include short sales
and real estate owned (REO) transactions.
The CoreLogic Pending HPI indicates that January 2013 home prices, including
distressed sales, are expected to rise by 7.9 percent on a year-over-year basis
from January 2012 and fall by 1 percent on a month-over-month basis from
December 2012, reflecting a seasonal winter slowdown. Excluding distressed
sales, January 2013 house prices are poised to rise 8.6 percent year over year
from January 2012 and by 0.7 percent month over month from December 2012. The
CoreLogic Pending HPI is a proprietary and exclusive metric that provides the
most current indication of trends in home prices. It is based on Multiple
Listing Service (MLS) data that measure price changes for the most recent
month.
“December marked 10 consecutive months of year-over-year home price
improvements, and the strongest growth since the height of the last housing
boom more than six years ago,” says Mark Fleming, chief economist for
CoreLogic. “We expect price growth to continue in January as our Pending HPI
shows strong year-over-year appreciation.”
“We are heading into 2013 with home prices on the rebound,” said Anand
Nallathambi, president and CEO of CoreLogic. “The upward trend in home prices in
2012 was broad based with 46 of 50 states registering gains for the year. All
signals point to a continued improvement in the fundamentals underpinning the
U.S. housing market recovery.”
Highlights as of December 2012:
• Including distressed sales, the five states with the highest home price
appreciation were: Arizona (+20.2 percent), Nevada (+15.3 percent), Idaho
(+14.6 percent), California (+12.6 percent) and Hawaii (+12.5 percent).
• Including distressed sales, this month only four states posted home price
depreciation: Delaware (-3.4 percent), Illinois (-2.7 percent), New Jersey
(-0.9 percent) and Pennsylvania (-0.5 percent).
• Excluding distressed sales, the five states with the highest home price
appreciation were: Arizona (+16.4 percent), Nevada (+14.7 percent), California
(+12.8 percent), Hawaii (+11.7 percent) and North Dakota (+10.8 percent).
• Excluding distressed sales, this month only three states posted home price
depreciation: Delaware (-1.9 percent), Alabama (-1.0 percent) and New Jersey
(-0.5 percent).
• Including distressed transactions, the peak-to-current change in the national
HPI (from April 2006 to December 2012) was -26.9 percent. Excluding distressed
transactions, the peak-to-current change in the HPI for the same period was -20.8
percent.
• The five states with the largest peak-to-current declines, including
distressed transactions, were Nevada (-52.4 percent), Florida (-43.5 percent),
Arizona (-39.8 percent), Michigan (-36.5 percent) and California (-35.4
percent).
• Of the top 100 Core Based Statistical Areas (CBSAs) measured by population,
only 16 are showing year-over-year declines in November, two fewer than in
November.
For more information, visit www.corelogic.com
Janet & Graham Ford
Phone: (918) 798-4428
4105 S. Rockford Ave
Tulsa, OK 74105
www.janetford.com
info@janetford.com
Updated & Hardwoods
• 1 bath, 2 bdrm single story
-
MLS
$98,000
Jefferson Terrace, Tulsa
-
Updated, super, ready for move in! Modern with the vintage feel retained in the home. Lots of tasteful cabinetry in kitchen, great counter space, additional window for light. Spacious dining, living & bedrooms and separate inside laundry. Great bath-tub. Wonderful refinished hardwood floors.
Property information
FHA Takes Additional Steps to Bolster Capital Reserves
As part of a broad effort to strengthen the Federal Housing Administration's
(FHA) Mutual Mortgage Insurance Fund (MMI Fund), FHA Commissioner Carol Galante
announced a series of changes to be issued this week that will allow the agency
to better manage risk and further strengthen the health of the MMI Fund.
"These are essential and appropriate measures to manage and protect FHA's single-family
insurance programs" said Galante. "In addition to protecting the MMI Fund,
these changes will encourage the return of private capital to the housing
market, and make sure FHA remains a vital source of affordable and sustainable
mortgage financing for future generations of American homebuyers."
Home Equity Conversion Mortgage Consolidation
As discussed in its Annual Report to Congress, FHA will consolidate its
Standard Fixed-Rate Home Equity Conversion Mortgage (HECM) and Saver Fixed Rate
HECM pricing options. This change will be effective for FHA case numbers
assigned on or after April 1, 2013. The Fixed Rate Standard HECM pricing option
currently represents a large majority of the loans insured through FHA's HECM
program and is responsible for placing significant stress on the MMI Fund. To
help sustain the program as a viable financial resource for aging homeowners,
the HECM Fixed Rate Saver will be the only pricing option available to
borrowers who seek a fixed interest rate mortgage. Using the HECM Fixed Rate
Saver for fixed rate mortgages will significantly lower the borrower's upfront
closing costs while permitting a smaller pay out than the HECM Fixed Rate
Standard product, thereby reducing risks to the Mutual Mortgage Insurance Fund.
Read FHA's new HECM Mortgagee Letter.
In addition to the HECM consolidation announced today, FHA will announce the
following changes in the coming days:
Changes to Mortgage Insurance Premiums
FHA will increase its annual mortgage insurance premium (MIP) for most new
mortgages by 10 basis points or by 0.10 percent. FHA will increase premiums on
jumbo mortgages ($625,500 or larger) by 5 basis points or 0.05 percent, to the
maximum authorized annual mortgage insurance premium. These premium increases
exclude certain streamline refinance transactions.
FHA will also require most FHA borrowers to continue paying annual premiums for
the life of their mortgage loan. Commencing in 2001, FHA cancelled required MIP
on loans when the outstanding principal balance reached 78 percent of the
original principal balance. However, FHA remains responsible for insuring 100
percent of the outstanding loan balance throughout the entire life of the loan,
a term which often extends far beyond the cessation of these MIP payments.
FHA's Office of Risk Management and Regulatory Affairs estimates that the MMI
Fund has foregone billions of dollars in premium revenue on mortgages endorsed
from 2010 through 2012 because of this automatic cancellation policy.
Therefore, FHA will once again collect premiums based upon the unpaid principal
balance for the entire period for which FHA is entitled. This will permit FHA
to retain significant revenue that is currently being forfeited prematurely.
Read FHA's new MIP Mortgagee Letter.
Requiring Manual Underwriting on Loans with Decision Credit Scores below 620
& DTI Ratios over 43 Percent
FHA will require lenders to manually underwrite loans for which borrowers have
a decision credit score below 620 and a total debt-to-income (DTI) ratio
greater than 43 percent. Lenders will be required to document compensating
factors that support the underwriting decision to approve loans where these
parameters are exceeded, using FHA manual underwriting and compensating factor
guidelines. Read FHA's new DTI Mortgage Letter.
Raising Down Payment on Loans above $625,500
Through a Federal Register Notice to be published in the next several days, FHA
will announce a proposed increased down payment requirement for mortgages with
original principal balances above $625,500. The minimum down payment for these
mortgages will increase from 3.5 to 5 percent. This change, coupled with the
statutory maximum premiums charged for these loans, will help protect FHA and
further facilitate its efforts to encourage higher levels of private market participation
in the housing finance market.
Access to FHA after Foreclosure
FHA will step up its enforcement efforts for FHA-approved lenders with regard
to aggressive marketing to borrowers with previous foreclosures and remind
lenders of their duty to fully underwrite loan applications. New loans must
meet all FHA guidelines.
Borrowers are currently able to access FHA-insured financing no sooner than
three years after they have experienced a foreclosure, but only if they have
re-established good credit and qualify for an FHA loan in accordance with FHA's
fully documented underwriting requirements. It has come to FHA's attention that
a few lenders are inappropriately advertising and soliciting borrowers with the
false pretense that they can somehow "automatically" qualify for an FHA-insured
mortgage three years after their foreclosure. This is simply not true and such
misleading advertising will not be tolerated.
Moreover, FHA will work with other federal agencies to address such false
advertising by non-FHA-approved entities. Finally, as discussed in its Annual
Report to Congress, FHA is also committed to structuring a new housing
counseling initiative that would apply to a number of borrower classifications,
including borrowers with previous foreclosures.
Continuing Effort to Improve Risk Management
The changes announced this week will further contribute to the efforts made
throughout the Obama Administration's tenure to improve risk management at FHA
and protect the Mutual Mortgage Insurance Fund. Because of these commitments,
the changes made at FHA over the past four years have already added more than
$20 billion in value to the MMI Fund.
For more information, visit www.hud.gov.
Janet & Graham Ford
Phone: (918) 798-4428
4105 S. Rockford Ave
Tulsa, OK 74105
www.janetford.com
info@janetford.com
7 Steps to Simplify House Hunting
House hunting is a complicated process. From finding the right home, to locking
down a mortgage rate you can afford, it is a process that requires an attention
to detail and a well-thought-out plan. Below are seven steps to take as you
begin house hunting to ensure you stay focused and on budget.
1. Establish your goal. Searching for your dream house? Upgrading your
current digs or looking to downsize? Whatever the goal is behind your impending
home purchase, be sure you understand it clearly before beginning your house
hunt. This will eliminate wasted time spent viewing homes that don't meet your
top priority.
2. Create a wish list. Once your primary objective is in place, it's
time to list all of the additional features and amenities you expect from the
property you eventually buy. Do you want a swimming pool in the backyard, a
balcony off of your master bedroom or crown molding throughout? Brainstorming
must-haves and also-nice-to-haves helps to further narrow down your search
field.
3. Hire a real estate agent. No one understands the intricacies of a local
housing market like a real estate agent with years of experience helping others
buy and sell property within it. Save yourself time and headache and hire a
highly rated agent to see you through the process.
4. Get pre-approved. Knowing exactly how much you can afford to spend
ahead of time helps the house hunting process goes much smoother, not to
mention, eliminates the disappointment of learning you don't have enough saved
for the home you've had your eye on all this time. Getting pre-approved for a mortgage
will set your budget straight off.
5. Ask questions and take notes. This is probably the biggest purchase
you'll ever make, so don't hold back if you have questions or concerns. Ensure
you have no lingering questions about the property, mortgage financing terms or
anything else that could lead to regret down the line. And don't forget to
write down important notes as you view house after house - things that seem
important in the moment are easily forgotten after five open houses.
6. Do some recon work. Spend time hanging around the house you have your
eye on, and during different times of the day. Does it get noisy? Is the
traffic a nightmare? What are the neighbors up to? The worst thing would be to
lock into your mortgage, only to find that while you love your house, you hate
the neighborhood around it.
7. Look out for hidden expenses. Finally, it's important to investigate
more than just the house itself to find out if there are potential money traps
within. For example, find out when the home's appliances, water heater, roof,
etc. were last replaced so that you aren't surprised with a big expense shortly
after moving in.
Source: GoBankingRates.com
Janet & Graham Ford
Phone: (918) 798-4428
4105 S. Rockford Ave
Tulsa, OK 74105
www.janetford.com
info@janetford.com
2013: Transition to
"Normal"?
By Pete Bakel
The trend of gradual but below-potential economic growth seen in 2012 is
expected to carry over through 2013 and into 2014. This modest growth path
combined with the real GDP growth rate during the recovery from 2009 to this
point of 2.2 percent annualized give credence to claims that the recovery’s
slow pace has become the “new normal,” according to Fannie Mae’s Economic &
Strategic Research Group. The fiscal cliff and ongoing debt ceiling debate,
which are likely to suppress consumer spending in the first half of 2013,
continue to present potentially strong headwinds to meaningful growth activity.
Overall, a 2 percent growth rate is forecasted for 2013, similar to the subdued
pace of 2012.
This is despite the fact that the housing sector, which has become a bright
spot in the economy since home prices began to rebound in 2012, is expected to
provide a rising contribution to GDP in 2013 and in coming years. Recent data
indicate that the housing recovery has transitioned to a faster upward track,
boosted by an improving labor market and low mortgage rates. Overall, home
sales, home prices, and home building activity as well as homebuilder
confidence appear to be on the upswing, having risen to multi-year highs.
“What we view as sub-par economic growth may actually continue to be par for
the course for the near term,” says Fannie Mae Chief Economist Doug Duncan. “We
expect the fiscal policy climate to act as a drag on growth this year with
possible implications on the direction of the economy in the long term. As
fiscal policy debates subside later in the spring, we expect to see some upward
trend in economic activity, with growth accelerating moderately in the second
half of the year. That momentum will find support in the form of continued,
albeit slow, improvement in the housing sector. In the longer term, the gradual
return of manufacturing to the U.S. and increasing domestic energy production
will work together to accelerate economic growth. However, we anticipate
overall growth in 2013 will remain below its potential, extending what has been
a slow recovery.”
For an audio synopsis of the January 2013 Economic Outlook, listen to the
podcast on the Economic & Strategic Research site at www.fanniemae.com.
Visit the site to read the full January 2013 Economic Outlook, including the
Economic Developments Commentary, Economic Forecast, Housing Forecast, and
Multifamily Market Commentary.
Opinions, analyses, estimates, forecasts, and other views of Fannie Mae's
Economic & Strategic Research (ESR) Group included in these materials
should not be construed as indicating Fannie Mae's business prospects or
expected results, are based on a number of assumptions, and are subject to
change without notice. How this information affects Fannie Mae will depend on
many factors. Although the ESR Group bases its opinions, analyses, estimates,
forecasts, and other views on information it considers reliable, it does not
guarantee that the information provided in these materials is accurate,
current, or suitable for any particular purpose. Changes in the assumptions or
the information underlying these views could produce materially different
results. The analyses, opinions, estimates, forecasts, and other views
published by the ESR Group represent the views of that group as of the date indicated
and do not necessarily represent the views of Fannie Mae or its management.
For more information, visit www.fanniemae.com.
Janet & Graham Ford
Phone: (918) 798-4428
4105 S. Rockford Ave
Tulsa, OK 74105
www.janetford.com
info@janetford.com
Maintaining Your Home Investment
(BPT) - Home ownership is an important investment that can create both a sense
of pride and a place in the world that is all your own. While the investment in
purchasing or building your own home is sizeable, letting your home fall into
disrepair can be even more costly. However, home maintenance doesn't have to be
a daunting task. By following a few simple steps and making maintenance a
regular activity, you'll not only preserve the quality of your home, but you'll
likely save money over the long term.
Keep a regular maintenance schedule
Whether you've just moved in or have lived in your home for decades, it's
important to establish a regular routine to maintain your home. Some tasks
should be checked off the list regularly, while others are more seasonal. Start
a list or put reminders on your calendar for these important to-dos:
- Regularly test fire extinguishers, smoke alarms and
carbon monoxide detectors.
- Replace air filters for heating and cooling systems
according to owner's manuals.
- Schedule regular furnace and water heater maintenance.
- Check electrical outlets to ensure proper function.
- Weatherproof doors and windows according to the season.
- Don't underestimate regular cleaning to keep your home
in top shape.
Invest in items that protect your investments:
Regular home maintenance is worth your while and certain investments can ensure
your home remains in top shape for years to come. There are many different
products designed to help you maintain your home investment by making it easier
to clean, protect, update and more. For example, if pets are part of your
family, investing in a great vacuum can help keep your house pet hair free,
while a home security system will help ensure your home and possessions are
protected at all times.
If you're building a new home or remodeling, consider products designed to
maintain your investments. For example, KraftMaid's CoreGuard sink base, an
engineered polymer cabinet interior, is designed to protect from leaks and
spills that commonly occur under the sink. Available through dealers, Lowe's or
The Home Depot, CoreGuard offers a simple solution to protect cabinetry for the
long term.
What's on the outside counts too.
While you may experience the benefits of interior maintenance more regularly,
outdoor maintenance is just as important in taking care of your home. Tasks
like making sure gutters are clear and siding is clean and damage-free help
ensure that the exterior of your home stays beautiful. Strategic landscaping
can help with heating or cooling costs by allowing light in or providing shade
where needed. It can also help by diverting water away from the house to avoid
leaks or damage. Additionally, an investment in the exterior of your house can
enhance the curb appeal and make it a joy to come home to every day.
Kitchen and Beyond: Stainless Steel
& Top Kitchen Trends For 2013
By John Voket
As I begin the first few tentative steps into my own 'kitchen and beyond'
remodeling project, we'll be sharing with you a number of ideas and tips
learned along the way. One of the early resources for ideas about kitchen
remodeling was Stanton Homes (stantonhomes.com) in Apex, NC.
Many of the latest homes that company is designing locate kitchens directly
off, or open to the home's large great rooms. These Stanton kitchen now looks
less "kitcheny" and more often like an inviting place to gather and
entertain, with decorative elements that are strong right now include natural
finishes like wood and stone complimented by glass, shiny metallics, special
attention to lighting details, and even crystal.
Andrea Enns, Stanton Homes' Interior Design expert also reaffirmed that it is
quite a "safe" to invest in stainless steel appliances and finishes.
Enns says since stainless steel has been used in the best kitchens for over a
century due to its universal appeal, its ability to provide a sterile surface,
its shiny appearance, as well as its association with luxury.
On another front, the Consumer's Voice for Kitchen and Bath Remodeling (myconsumersvoice.com)
is promoting three new kitchen trends for 2013, including:
- Soft Contemporary – A simpler approach of the modern
kitchen, a soft contemporary design doesn’t have as many harsh lines, but
more soft accents throughout the space. This look can be achieved through
modern accents in a more traditional space such as contemporary bar stools
or lighting.
- New Traditional – Instead of the “transitional” kitchen
name, new traditional is much like transitional but has more emphasis on
classic touches. Instead of the large, overbearing feel of a traditional
kitchen, the new traditional design feels much lighter.
- Eclectic – This design trend is less of one style as it
is a mixture of many. We see a lot of spaces putting together different
finishes, patterns and textures to create a space that is truly one of a
kind.
We will focus on other remodeling and historic restoration projects as our
'Kitchen and Beyond...' series continues.
Janet & Graham Ford
Phone: (918) 798-4428
4105 S. Rockford Ave
Tulsa, OK 74105
www.janetford.com
info@janetford.com
Fiscal Cliff Avoided: What It Means for Housing and Home Builders
The fiscal cliff, an economically damaging set of tax hikes
and spending reductions scheduled to begin in 2013, has been avoided (for now)
and that is good news for housing in the short-run.
The enactment of H.R.
8, the American Taxpayer Relief Act of 2012, will extend permanently most, but
not all, of the 2001/2003 tax cuts. The legislation prevents a fiscal drag of
approximately $600 billion in 2013, which would have been large enough to push
the current weak economy into recession. That in turn would have reduced demand
for both owner-occupied and renter housing and threatened the ongoing recovery
for home building.
That outcome has been prevented, although future
fiscal policy debates loom on the horizon. For example, a legislative fight over
the debt ceiling and the delayed sequester will take place in February. And 2013
may be a year in which comprehensive tax reform is under legislative
consideration.
But for now, the following items in H.R. 8 are of interest to
housing stakeholders and home builders:
Business Tax
Items• Permanently extends the 2001/2003 tax rates for adjusted
gross income levels under $450,000 ($400,000 single); good for small business
and home builders, 80% of whom are pass-thru entities who pay taxes on the
individual side of the code
• Permanently extends the Alternative Minimum
patch; again, good for small business owners who are frequently at risk of
paying AMT
• Permanently sets the parameters of the estate tax; positive for
family-owned construction firms; codifies the 2010 $5 million exemption amount
(indexed to inflation) and a 40 percent estate tax rate
• Extends present law
section 179 small business expensing through the end of 2013; offers cash flow
and administrative cost benefits for small firms
• Extends the section 45L
new energy-efficient home tax credit through the end of 2013; allows a $2,000
tax credit for the construction of for sale and for-lease energy-efficient homes
in buildings with fewer than three floors above grade
Homeowner
Tax Items• Extends through the end of 2013 mortgage debt tax
relief; important rule that prevents tax liability from many short sales or
mitigation workouts involving forgiven, deferred or canceled mortgage debt
•
Deduction for mortgage insurance extended through the end of 2013; reduces the
cost of buying a home when paying PMI or insurance for an FHA or VA- insured
mortgage; $110,000 AGI phaseout remains
• Extends the section 25C
energy-efficient tax credit for existing homes through the end of 2013;
important remodeling market incentive, although the lifetime cap remains at
$500.
• Reinstates the Pease/PEP phaseouts for deductions; for married
taxpayers with AGI above $300,000 ($250,000 single), the Pease limitation
reduces total itemized deductions by 3 percent for the dollar amount of AGI
above the thresholds. This is a negative change for some high cost areas, but
should only have small impacts. Example, a married household with $350,000 AGI
would be $50,000 above the limit and must reduce their Schedule A total by
$1,500 raising their taxes by about $500. Only a share of that would be due to
the MID.
Multifamily Tax Items• Extends the 9percent
LIHTC credit rate for allocations through the end of 2013; absent the credit
fix, the LIHTC program would suffer a loss of equity investment for affordable
housing projects
• Extension through the end of 2013 of base housing
allowance rules for affordable housing
Also noteworthy are items that are not
in H.R. 8, including an itemized deduction cap or a defined fast-track tax
reform process. Nonetheless, the return of the Pease rules suggests that items
like the mortgage interest deduction will be under debate in 2013.
The
resolution of the fiscal cliff now gives way to a series of mini-cliffs due to
the need to raise the debt ceiling, establishing government spending levels and
deal with the sequester. Over the long run, the future of housing demand, and
interest rates in particular, will be affected by how Congress and the President
solve the nation’s long-run deficit challenges.
View this original post
on the NAHB blog,
Eye
on Housing.
Tanglewood, Tulsa
-
Announcing a price reduction
on 9407 S.Jamestown Ave, a 4,120 sq. ft., 4 bath, 4 bdrm 1 1/2 story. Now
MLS®
$525,000
- New Price, was originally $612k.
Property information
New Bedford, Broken Arrow
-
Announcing a price reduction
on 4782 S 203rd East Avenue Broken Arrow, a 2,045 sq. ft., 2 bath, 3 bdrm single story. Now
MLS®
$187,900
- .
Property information
Come and
view this wonderful home, with vaulted beamed ceiling, hardwood floors and
professional appliances.
Janet & Graham Ford
Phone: (918) 798-4428
4105 S. Rockford Ave
Tulsa, OK 74105
www.janetford.com
info@janetford.com
HUD Awards Over 100 Million to Revitalize Housing
U.S. Housing and Urban Development (HUD) Secretary Shaun
Donovan announced today that four communities will receive a combined $108.9
million to redevelop distressed housing and bring comprehensive neighborhood
revitalization to blighted areas.
HUD’s Choice Neighborhoods
Initiative (Choice) will help transform distressed communities in
Cincinnati, Ohio; San Antonio, Tex.; Seattle, Wash.; and Tampa, Fla. This
landmark initiative promotes a comprehensive approach to transforming areas of
concentrated poverty into viable and sustainable mixed-income neighborhoods. The
$108.9 million federal investment of Choice Neighborhoods has generated $393
million in private investments and commitments from local jurisdictions and
partners, a more than 300 percent leveraging.
“HUD’s Choice Neighborhoods
Initiative supports local visions for how to transform high-poverty, distressed
communities into neighborhoods of opportunity,” says Donovan. “We’re emphasizing
a comprehensive approach to revitalizing neighborhoods by considering the
totality of a community with regard to health, safety, education, jobs and
quality housing in mixed-income neighborhoods.”
The communities announced
today were selected from nine finalists HUD announced in August. Each of the
finalists completed a comprehensive local planning process and ready to move
forward with their plan to revitalize the housing and redevelop their target
neighborhoods. Building on the successes of HUD’s HOPE VI Program, Choice links
housing improvements with a wide variety of public services and neighborhood
improvements to create neighborhoods of opportunity.
The Choice
Neighborhoods Initiative is one of the signature programs of the White House
Neighborhood Revitalization Initiative, which supports innovative and inclusive
strategies that bring public and private partners together to help break the
cycle of intergenerational poverty. It encourages collaboration between HUD and
the Departments of Education, Justice, Treasury and Health and Human Services to
support local solutions for sustainable, mixed-income neighborhoods with the
affordable housing, safe streets and good schools all families
need.
Congress approved the Choice Neighborhoods Initiative with the
passage of HUD’s Fiscal Year 2010 budget. Funding is provided through two
separate programs – Implementation Grants and Planning Grants. In 2011, HUD
awarded its first Choice Implementation grants for Chicago, Boston, New Orleans,
San Francisco and Seattle, a combined $122.27 million investment to bring
comprehensive neighborhood revitalization to blighted areas in these cities.
With this announcement, HUD has awarded a total of $231,250,000 in Choice
Implementation Grants in eight cities. See past Implementation grantees list here.
For more information, visit www.hud.gov.
Janet & Graham Ford
Phone: (918) 798-4428
4105 S. Rockford Ave
Tulsa, OK 74105
www.janetford.com
info@janetford.com
HUD Cuts Red Tape to Help Displaced Storm Victims
To expand housing options for families displaced by Hurricane
Sandy, the U.S. Department of Housing and Urban Development (HUD) announced that
it is giving public housing agencies greater flexibility in calculating rent
payments in areas experiencing increased demand for rental housing. This is one
of several actions HUD is taking to cut red tape to help families who were
forced from their homes and require alternative housing.
HUD is allowing
local housing agencies to increase a payment standard up to 120 percent of the
published “Fair Market Rent” thereby giving low-income families more options to
find available housing in tight rental markets.
“We understand that in
the wake of a disaster like Sandy, available rental housing becomes increasingly
difficult to find, especially for lower income families,” said HUD Secretary
Shaun Donovan, who President Obama recently appointed to oversee long-term
disaster redevelopment in the disaster region. “Simply by giving local housing
authorities greater flexibility in calculating rental assistance to these
families can make all the difference in finding a suitable home or not. This is
just one more example of how the Obama Administration is cutting red tape to
make our programs work better following a disaster.”
Local housing
agencies use HUD’s annual Fair Market Rents (FMR) to determine how much rental
subsidy low-income families are eligible for through HUD’s Housing Choice
Voucher Program. Currently housing agencies are allowed to set this payment
standard up to 110 percent of an area’s FMR. However, in Presidentially Declared
Disaster Areas, housing agencies can request a waiver to temporarily establish a
payment standard up to 120 percent of the current FMR.
For example, the
FMR for a 2-bedroom unit in Union County, N.J. is $1,202. Housing of this size
in the area could rent for more or less than that amount, but under HUD’s
Housing Choice Voucher program the local housing authority can set a payment
standard anywhere from 90 to 110 percent of the FMR. At the 110 percent payment
standard, the maximum monthly rental assistance would be $1,322. However, under
this special waiver of HUD regulatory requirements, housing agencies can
increase the payment standard to 120 percent, which in this example, would mean
the maximum monthly subsidy could increase to $1,442.
Families would
continue to pay their required portion of the rent, typically 30 percent of
adjusted monthly income, but because of the increase in the maximum subsidy
available, the measure would allow displaced families to afford housing they
would not normally be able to under the regular payment standard, thereby
increasing the available supply of housing that these families could afford. The
measure also prevents the displacement of HUD-assisted families where rents may
be increasing significantly as the result of the loss of rental housing stock in
the disaster areas.
HUD and other federal agencies are helping displaced
families find alternative housing while their homes are repaired. The Federal
Emergency Management’s Housing Portal consolidates rental resources from HUD,
Department of Agriculture, Department of Veterans Affairs, private
organizations, and the public to help families and individuals locate rental
units in their area. HUD is also cutting red tape to help accelerate the
re-housing of these families, including:
• Allowing senior housing
providers the flexibility to open up vacant units to evacuees of Hurricane Sandy
under the age of 55 without jeopardizing a community's qualification for certain
legal exemptions under the Fair Housing Act. Read HUD’s open letter.
•
Relaxing federal regulations for dozens of ‘participating jurisdictions’ in
Hurricane Sandy-impacted areas so they can quickly rehabilitate single-family
housing and to use vacant rental units to quickly house displaced families.
For more information, visit www.hud.gov.
Janet & Graham Ford
Phone: (918) 798-4428
4105 S. Rockford Ave
Tulsa, OK 74105
www.janetford.com
info@janetford.com
Choosing the Mortgage That's Right for You Starts with Understanding the
Options
By Keith Loria
When it comes to choosing a mortgage, it’s more
important than ever for prospective buyers—or current owners looking to
refinance—to understand the wide range of mortgage loans available. Whether
you’re in the market for a home mortgage, looking to refinance or jump on the
green bandwagon with energy efficient upgrades, there are a number of different
home mortgage loans available.
While the process can quickly become
overwhelming, the following list of mortgage loans will satisfy anyone’s unique
need or situation.
Fixed-rate mortgages are the most common mortgages
since the rates are stable for the life of the loan, taking all the guesswork
out of the equation. Not only will borrowers know their exact monthly payment
throughout the life of the loan, they can also be sure that nothing will change.
The most popular fixed-rate mortgages are 30- and 15-year terms.
Adjustable-rate mortgages (ARMs) start with low rates for a specified
time and then fluctuate periodically based on the market conditions. While the
initial rates are significantly lower than fixed-rate mortgages, borrowers need
to be prepared for the possibility of increased mortgage payments later on.
Because of the risk involved, ARMs are typically ideal for borrowers who plan to
stay in their home only for a short time.
Two-step mortgages start out as
an adjustable-rate mortgage that has the same interest rate for part of the
mortgage and a different rate for the rest of the mortgage. The interest rate
changes or adjusts in accordance to the rates of the current market. The
borrower, on the other hand, might have the option of making the choice between
a variable interest rate or a fixed-interest rate at the adjustment date. When
going with a two-step mortgage, borrowers are taking the risk of the interest
rate of the mortgage adjusting upward after the expiration of the fixed-interest
rate period. Many borrowers who take advantage of the two-step mortgage plan on
refinancing or moving out of the home before the period ends.
FHA
mortgages are home loans insured by the Federal Housing Administration and are
designed to help borrowers who might not otherwise be able to get a loan. FHA
mortgages have become more popular among first-time homebuyers due to their
lower down payments, flexible mortgage requirements and consistent rates
throughout the entire term.
For those who need larger loans than the
conforming loan limits set by Fannie Mae and Freddie Mac, jumbo mortgages are
the way to go. For most of the country, the conforming loan limit is set to
$417,000, while high cost areas have conforming loan limits up to $729,750.
Jumbo loans are a higher risk to lenders and usually have higher mortgage rates
and stricter mortgage criteria, including higher down payments and higher credit
requirements.
There are also special mortgages for veterans, those in
the military, first-time buyers and even doctors, so always check with your
local and state mortgage programs. In addition, examine all community service
and housing agency mortgages and mortgage assistance programs.
For more
information about finding the mortgage that’s right for you, contact our office
today.
Janet & Graham Ford
Phone: (918) 798-4428
4105 S. Rockford Ave
Tulsa, OK 74105
www.janetford.com
info@janetford.com
New Home Sales Hold Steady in October
The Census Bureau and HUD reported October new home sales at a
seasonally-adjusted annual level of 368,000, which is virtually the same as the
three previous months. A 32 percent drop in sales in the Northeast was likely a
result of the threat and ultimate impact of the storm named
Sandy.
Inventories rose 2,000 to 147,000, which remains at a very low
level but shows some promise that builders are able to begin restocking. The
month’s supply was 4.8, well below an industry standard of 6
months.
Median home prices increased 5.7 percent and average prices rose
8 percent from October of last year. The rise is likely a dual effect of rising
building costs and a continuation of a compositional effect. Recent homebuyers
are those that can obtain a mortgage and the tight credit standards are making
it less likely for moderate income households to qualify while higher income
households are able to make it through the more restrictive
thresholds.
Regionally, sales were up in the Midwest and West both
month-to-month as well as comparing the October level to the third quarter
average, which adjusts for typical unusual monthly movements. Sales were down in
the South to 176,000 but the August level was unusually high. The three-month
moving average still stands at 184,000, which is within a 3 percent range of the
monthly levels from April to August 2012. The Northeast fell 32 percent but the
monthly level of 21,000 was well below the three-month moving average as far
back as February 2012.
On an annual basis, October sales were up 17.2
percent from one year earlier and continue to support an expected 22 percent
increase in annual sales for 2012 over 2011. New home sales will continue to
rise at this modest pace as the pent up demand is released and as the policy
uncertainties at the end of 2012 are resolved.
To view this article on
the NAHB blog, Eye on Housing, click here.
Janet & Graham Ford
Phone: (918) 798-4428
4105 S. Rockford Ave
Tulsa, OK 74105
www.janetford.com
info@janetford.com