NAR Home Price Survey Raises Big Questions About the Jumbo Market
The National Association of Realtors released its quarterly home price survey today–and the trade group says median home prices dropped in two-thirds of the cities it surveyed. Median prices for pre-existing single-family homes fell in 100 of 149 metropolitan areas in the first quarter, NAR said; 48 urban areas posted price gains. One lone metropolitan area had no change. The national median home price also fell, dropping 7.7. percent from the January to March 2007 period to $196,300. The former median sales price was $212,600. NAR has been characteristically optimistic as of late about the housing market improving–let’s face it,…
Fannie Mae and Freddie Mac’s Uncertain Future
Fannie Mae and Freddie Mac have been in the news often lately–and an interesting article in today’s New York Times touches on some of the challenges the agencies face that could make headlines in the future. The article illustrates why the mortgage market needs both companies, and discusses why it’s in danger of potentially losing them. (Given today’s announcement that Fannie Mae posted a more than $2 billion first quarter loss, that concern is more timely than ever.) And although the government has relied on both companies to help bail out the mortgage market, its close ties to Fannie and…
A Valentine from NAHB to Green Building
The long-awaited National Association of Home Builders’ National Green Building Program debuted Thursday at the International Builders’ Show–and although its details are still unfolding, the reaction was positive. NAHB stressed that–in these often-negative residential building times–the marketability of green building can help builders get work. It’s also a great way to boost client confidence in a project by stressing the over-time savings and general feel-good, giving-back nature of green building. "This is a historic day for our association," said Bob Jones, an NAHB vice president and a builder in Bloomfield Hills, Mich. "This program allows all home builders to build…
IBS Gets Green with Help From New Program, Exhibitors
This year, more than 1,900 exhibitors–product manufacturers, distributors and more–from 300 industry categories came to meet and greet builders at the International Builder’s Show in Orlando, Fla. To make that process a little more manageable, the National Association of Home Builders has both a standard and searchable exhibitor list on its Web site. However, in honor of today’s Green Day status (coined as such by NAHB, who plans to release its green building professional program–which will give builders a Certified Green Professional designation–we thought we’d highlight a few of the unique green-centric exhibitors at the show. Optiflame electric fireplaces–All of…
International Builders’ Show Offers the Industry Excitement and New Opportunities
Forget Disney World: The biggest event in Orlando today is the International Builders’ Show, sponsored by the National Association of Homebuilders, which kicks off this morning. The past year hasn’t been an easy one for residential builders or remodeling experts. But the annual IBS show–the housing industry’s largest annual light construction trade show and exhibition, held at the Orange County Convention Center in Orlando–is a chance for builders to meet, network, exchange ideas and grow their business. "Builders view the International Builders’ Show as an indispensable business tool," said Ken Klein, chairman of the NAHB Convention & Meetings Committee and…
The Next Subprime Target
Last weekend, finance leaders from the Group of Seven nations met in Tokyo. The overwhelming verdict: The subprime fallout is not over–and no one is sure which country it will impact next. The U.S. seems to be the most optimistic about the global economic situation–Treasury Secretary Hank Paulson said this week he believes the U.S. will see growth next year–but, then again, we have already seen a good deal of the subprime fallout’s force. The Federal Reserve had already more than doubled its original $50 billion estimate for subprime damage; German finance minister Peer Steinbrück said this week that the…
Subprime-Related Accusations Fly As Housing Slump Deepens
An article in today’s Wall Street Journal discussed a wave of complaints against companies shareholders feel didn’t properly handle risk assessment during the subprime crisis. They want reform; many of the companies want the shareholders to lay off. Some are trying to ward off a shareholder vote on any proposed resolutions to prevent risk issues in the future, according to the Journal. The Laborers’ International Union of North America’s pension funds have sponsored many of the resolutions; they’ve asked companies including Merrill Lynch, Bank of America, Meritage Homes and builder Toll Brothers to provide more disclosure about CEO succession planning….
Economic Stimulus Plan Still Leaves Some Questions Unanswered
This stimulus plan that President Bush is expected to sign shortly contains a few housing provisions–but is that enough? A few points to consider: One Federal Regulator Isn’t So Sure. The head of the Office of Federal Housing Enterprise Oversight (who likely doesn’t have a small business card–that’s a mouthful) yesterday criticized the plan’s measures to give Freddie Mac and Fannie Mae larger loan limits, saying it would just get the agencies–which lawmakers have argued already need more regulation–wrapped up in some of the messiest housing markets in the U.S. (MHN’s blog expressed a similar concern in January about encouraging…
Rose-Colored Glasses Now Optional for NAR Monthly Forecast
The National Association of Realtors released its monthly report of home sales today, and the housing outlook for 2008 is pretty negative–even for the typically sunny real estate agent organization. This is the group, of course, that has been criticized for its ever-present optimism. Remember in July, when NAR said it felt home prices would increase throughout all of 2008, even as it decreased its estimate for those increases from 2.6 to 2.2 percent? Or that time in October when NAR said mortgage conditions were improving and that we’d see a market correction in early 2008? (That statement was made…
The Hidden Dangers in Selling Homes
Last week, a 24-year-old real estate agent in Canada died after meeting a potential client in a brand new luxury home. Police are investigating it as a homicide; the agent reportedly had concerns about the client, who said she needed to purchase a high-end home that day. According to the Globe and Mail, that crime is sadly not the first involving a real estate industry member. A Winnipeg-area real estate agent was sexually assaulted by a man who said he was looking for a home in December; in 2002, an agent in Calgary was tied up and robbed while showing…