As someone that has been in the Real Estate business for over 30 years never thought I would see these interest rates.
Freddie Mac's Primary Mortgage Market Survey®
Avg. Fees & Points
Copyright 2011, Freddie Mac. Averages are for conforming mortgages with 20% down.
30YR FRM 4.12 0.7
15YR FRM 3.33 0.6
5YR ARM 2.96 0.6
1YR ARM 2.84 0.6
Monday, September 12, 2011
Saturday, July 30, 2011
Interesting read on housing
RISMEDIA, July 29, 2011—(MCT)—Home prices in major U.S. cities increased in May for the second consecutive month, according to a closely watched index, although experts dismissed the uptick as seasonal while separate reports provided fresh evidence of a weak housing market.
The Standard & Poor’s/Case-Shiller index of home prices in 20 metropolitan areas rose 1 percent from April to May when left unadjusted for seasonal variations.
Prices often rise in spring because of changes in the types of homes selling: Foreclosures make up a higher proportion of sales during the winter as families take a break from home shopping and cash-rich investors dominate the market. Higher sales volumes also push up prices.
But compared with May 2010, home prices slid 4.5 percent, according to the index released Tuesday.
“Year-over-year, prices continue to deteriorate, although there has been a seasonal uptick over recent months,” says Stuart Gabriel, director of the Ziman Center for Real Estate at the University of California-Los Angeles. “This reflects a market that continues to be in search of a bottom.”
Chris G. Christopher Jr., an economist with consulting firm IHS Global Insight, said in a research note that the seasonal kick in prices will probably fade by October.
“Things do not look very favorable on the housing front since the employment situation has taken a turn for the worse in May and June,” he wrote. “The unemployment rate now stands at 9.2 percent, and consumer confidence is at depressed levels. Going forward, the Case-Shiller indexes are likely to post increases during the home-buying season, and then turn down again.”
The housing market began a renewed decline last year after the expiration of federal tax credits and has been limping along ever since. In March, home prices fell below their recession-era low, hit in April 2009, confirming a much-expected double-dip. Values have ticked up slightly since then.
One factor keeping housing weak is the high number of homes in foreclosure or headed into the foreclosure process. Then there’s the stalled jobs market, weak consumer confidence in the economy’s direction and the significant number of people saddled with mortgage debt that exceeds the value of their homes.
A separate report released Tuesday by Santa Ana, Calif., research firm CoreLogic indicated that the nation’s housing market is hampering the broader U.S. economic recovery. The report said that while several temporary factors have contributed to a slowing recovery, including high gas prices, U.S. floods and fading stimulus programs, “fundamentally, the recent slower economic growth illustrates that as the housing market goes, so does the economy.”
Housing influences the economy directly through residential construction, which typically gives a recovery a key boost. But with stiff competition from foreclosures, sales of new homes have been very weak for more than a year.
(c) 2011, Los Angeles Times.
The Standard & Poor’s/Case-Shiller index of home prices in 20 metropolitan areas rose 1 percent from April to May when left unadjusted for seasonal variations.
Prices often rise in spring because of changes in the types of homes selling: Foreclosures make up a higher proportion of sales during the winter as families take a break from home shopping and cash-rich investors dominate the market. Higher sales volumes also push up prices.
But compared with May 2010, home prices slid 4.5 percent, according to the index released Tuesday.
“Year-over-year, prices continue to deteriorate, although there has been a seasonal uptick over recent months,” says Stuart Gabriel, director of the Ziman Center for Real Estate at the University of California-Los Angeles. “This reflects a market that continues to be in search of a bottom.”
Chris G. Christopher Jr., an economist with consulting firm IHS Global Insight, said in a research note that the seasonal kick in prices will probably fade by October.
“Things do not look very favorable on the housing front since the employment situation has taken a turn for the worse in May and June,” he wrote. “The unemployment rate now stands at 9.2 percent, and consumer confidence is at depressed levels. Going forward, the Case-Shiller indexes are likely to post increases during the home-buying season, and then turn down again.”
The housing market began a renewed decline last year after the expiration of federal tax credits and has been limping along ever since. In March, home prices fell below their recession-era low, hit in April 2009, confirming a much-expected double-dip. Values have ticked up slightly since then.
One factor keeping housing weak is the high number of homes in foreclosure or headed into the foreclosure process. Then there’s the stalled jobs market, weak consumer confidence in the economy’s direction and the significant number of people saddled with mortgage debt that exceeds the value of their homes.
A separate report released Tuesday by Santa Ana, Calif., research firm CoreLogic indicated that the nation’s housing market is hampering the broader U.S. economic recovery. The report said that while several temporary factors have contributed to a slowing recovery, including high gas prices, U.S. floods and fading stimulus programs, “fundamentally, the recent slower economic growth illustrates that as the housing market goes, so does the economy.”
Housing influences the economy directly through residential construction, which typically gives a recovery a key boost. But with stiff competition from foreclosures, sales of new homes have been very weak for more than a year.
(c) 2011, Los Angeles Times.
Thursday, June 16, 2011
Foreclosures
Foreclosure filings in the U.S. tumbled last month to the lowest in almost four years as banks weighed down by an increasing inventory of seized homes delayed processing defaults, according to RealtyTrac Inc.
A total of 214,927 properties received default, auction or repossession notices in May, the fewest since November 2007, the Irvine, California-based data company said today in a statement. Filings dropped 33 percent from a year earlier and 2 percent from April. One in 605 households got a notice.
Foreclosure filings have fallen for eight straight months on a year-over-year basis as banks rework their documentation procedures following claims they improperly repossessed homes. Weak demand from buyers is making it difficult for lenders to sell the properties that they already have on their books, known as real estate owned, or REOs, according to RealtyTrac.
“Foreclosure processing delays continue to mask the true face of the foreclosure situation,” James J. Saccacio, RealtyTrac’s chief executive officer, said in the statement. “Even at a significantly lower level than a year ago, the new supply of REOs exceeds the amount being sold each month.”
Unemployment and falling home values are limiting property sales and have pushed about 28 percent of mortgage holders underwater on their loans, meaning they owe more than the home is worth, according to Zillow Inc. The U.S. jobless rate rose to 9.1 percent in May from 9 percent the previous month, the Labor Department reported June 3.
Eight-Year Low
Home prices slid 3.6 percent in the first quarter to the lowest level since 2003 in the S&P/Case-Shiller index of values in 20 U.S. cities. Confidence among builders in June was at the weakest in nine months, as executives expressed pessimism about the prospect of higher sales, the National Association of Home Builders/Wells Fargo sentiment index showed yesterday.
The inventory of distressed homes nationwide stands at 1.8 million, which would take about three years to sell at the current pace, Daren Blomquist, RealtyTrac’s communications manager, said in a telephone interview.
Default notices were filed on 58,797 U.S. properties last month, the lowest in more than four years and a 39 percent decline from a year earlier, according to RealtyTrac.
Auctions were scheduled for 89,251 properties, down 33 percent from May 2010. Lenders seized 66,879 homes, a 29 percent decrease from a year earlier.
States where courts oversee foreclosures showed a 45 percent decrease in filings from a year earlier, while non- judicial states had a 25 percent decline and accounted for almost two-thirds of the national total, RealtyTrac said.
Nevada, Arizona
Nevada had the highest rate of foreclosure filings per household for the 53rd straight month, with one in 103 getting a notice. Arizona had the second-highest rate at one in 210 and California was third at one in 259. Michigan, Utah, Georgia, Idaho, Florida, Illinois and Colorado also ranked in top 10.
Five states accounted for more than half of the U.S. filing total, led by California’s 51,906. Florida was second at 19,192 and Michigan third at 14,614. Arizona, Nevada, Illinois, Georgia, Texas, Ohio and Wisconsin rounded out the top 10.
RealtyTrac sells default data from more than 2,200 counties representing 90 percent of the U.S. population.
To contact the reporter on this story: Dan Levy in San Francisco at dlevy13@bloomberg.net
A total of 214,927 properties received default, auction or repossession notices in May, the fewest since November 2007, the Irvine, California-based data company said today in a statement. Filings dropped 33 percent from a year earlier and 2 percent from April. One in 605 households got a notice.
Foreclosure filings have fallen for eight straight months on a year-over-year basis as banks rework their documentation procedures following claims they improperly repossessed homes. Weak demand from buyers is making it difficult for lenders to sell the properties that they already have on their books, known as real estate owned, or REOs, according to RealtyTrac.
“Foreclosure processing delays continue to mask the true face of the foreclosure situation,” James J. Saccacio, RealtyTrac’s chief executive officer, said in the statement. “Even at a significantly lower level than a year ago, the new supply of REOs exceeds the amount being sold each month.”
Unemployment and falling home values are limiting property sales and have pushed about 28 percent of mortgage holders underwater on their loans, meaning they owe more than the home is worth, according to Zillow Inc. The U.S. jobless rate rose to 9.1 percent in May from 9 percent the previous month, the Labor Department reported June 3.
Eight-Year Low
Home prices slid 3.6 percent in the first quarter to the lowest level since 2003 in the S&P/Case-Shiller index of values in 20 U.S. cities. Confidence among builders in June was at the weakest in nine months, as executives expressed pessimism about the prospect of higher sales, the National Association of Home Builders/Wells Fargo sentiment index showed yesterday.
The inventory of distressed homes nationwide stands at 1.8 million, which would take about three years to sell at the current pace, Daren Blomquist, RealtyTrac’s communications manager, said in a telephone interview.
Default notices were filed on 58,797 U.S. properties last month, the lowest in more than four years and a 39 percent decline from a year earlier, according to RealtyTrac.
Auctions were scheduled for 89,251 properties, down 33 percent from May 2010. Lenders seized 66,879 homes, a 29 percent decrease from a year earlier.
States where courts oversee foreclosures showed a 45 percent decrease in filings from a year earlier, while non- judicial states had a 25 percent decline and accounted for almost two-thirds of the national total, RealtyTrac said.
Nevada, Arizona
Nevada had the highest rate of foreclosure filings per household for the 53rd straight month, with one in 103 getting a notice. Arizona had the second-highest rate at one in 210 and California was third at one in 259. Michigan, Utah, Georgia, Idaho, Florida, Illinois and Colorado also ranked in top 10.
Five states accounted for more than half of the U.S. filing total, led by California’s 51,906. Florida was second at 19,192 and Michigan third at 14,614. Arizona, Nevada, Illinois, Georgia, Texas, Ohio and Wisconsin rounded out the top 10.
RealtyTrac sells default data from more than 2,200 counties representing 90 percent of the U.S. population.
To contact the reporter on this story: Dan Levy in San Francisco at dlevy13@bloomberg.net
Wednesday, June 15, 2011
Real Estate Reports
Timely, local real estate data trumps national reports
Perspective: A call for more useful real estate statistics
By David Charron, Tuesday, June 14, 2011.
Inman News™
Broad housing market reports are a dime a dozen these days, and if you ask me, that's a good approximation of their worth. Markets are sliced and diced and compared across the board, drawing multiple -- and often conflicting -- conclusions with shaky, obsolete data. The market's up, or maybe it's down. It's good, it's bad, and it's confusing.
For most people, even with access to all this information the results are more inconsistent than ever, often dated and out of context. But they don't have to be.
Timely and accurate information, provided on a local level with a real-world perspective, is the real estate market's most important commodity -- and the ability of the public, government, financial institutions, investors and real estate professionals to make informed decisions on local housing markets is the cornerstone of an eventual housing recovery.
Isn't it time we stop trying to drive by, looking in the rear-view mirror, and insist on seeing just the facts, clearly, as they unfold?
Article continues below
Advertise with Inman
Considering the critical role that real estate statistics play in just about every housing-related decision, it is time for our industry to rally around better data. We owe it to ourselves, our clients and our profession to insist on timeliness and clarity while delving into the motivations and methodologies of every metric we disseminate.
The most recent Case-Shiller Home Price Index of May 31 is a perfect example: It noted, of all the U.S. markets it tracks, the Washington, D.C., metro area as the only market to experience an increase in housing prices for the first quarter of 2011.
While this index may be useful for Wall Street, it hardly constitutes breaking news. Improving market conditions were reported three weeks earlier in an index produced by an MRIS subsidiary.
Metric discrepancies are about more than selling products or securing a reputation in the marketplace -- they go to the heart of how we think about information. The one real estate mantra that has remained unequivocally true through some of the most tumultuous years in the history of our profession is that all real estate is local.
By focusing on broad market-to-market comparisons instead of individual markets, we undercut our value as real estate professionals. Instead of chasing fleeting affirmations that change day in and day out, we should ensure that real estate professionals know how to read and apply local data.
Let's focus more on whether single-family homes or condos are more prevalent in a single area, the variance of seasonal market shifts, or the changes in sales activity that often precede major trends.
Let's talk about the facts as they stand today and refrain from basing decisions on reports that are already five to seven months behind the market when they hit newsstands.
We're never going to move forward as a profession by basing decisions on old data, and we'll never overcome paralysis if we compare our local markets to every other market in the country without considering the context of local driving forces.
Most people won't buy stocks today based solely on six-month-old research, nor will they decide what to wear today based on the average temperature in New York. Why don't the same principles apply to real estate?
David Charron is president and CEO of MRIS, the largest multiple listing service in the nation. MRIS facilitates more than $100 million a day in real estate transactions in the mid-Atlantic region.
Contact Inman News:
Email Letter to the Editor
Copyright 2011 Inman News
All rights reserved. This content may not be used or reproduced in any manner whatsoever, in part or in whole, without written permission of Inman News. Use of this content without permission is a violation of federal copyright law.
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Submitted by Leon d'Ancona, B.T.L., M.T.L. on June 14, 2011 - 1:29pm.
Mr. Charron is very correct. Case-Shiller is a rather narrow index based on the principal variable used for index calculation of the price change between two arms-length sales of the same single-family home. For each sales transaction, a search is conducted to acquire information on any previous sale of the same property. If an earlier transaction is found, the two are paired and considered a “repeat sales transaction”.
In the last 25 years I have found its results very rarely reflect true small city or neighborhood values.
To dispel some of the negativity of this benchmark have a look at www.happyrenews.com a free service we provide to negate the poor press of real estate values.
Leon d'Ancona, B.T.L.,M.T.L.
President/CEO IMS Incorporated
WWW.Realestatestatistics.com
Login or register to post comments
Submitted by Keith Byrd on June 14, 2011 - 1:53pm.
Consumers want facts. Our industry's image has taken a hit from all the "now is a good time to buy" comments from agents that don't have a clue what's going on in their local market. Guess it's the difference between being a Sales person that will say anything to sell a home vs. providing a Service.
In my area, the local paper writes about the local real estate market using a single piece of data from a stats company. This value is county-wide and lumps all residential properties in one bucket and is missing any foreclosure info. In my county, foreclosure rates of sold properties in cities range from 0% to 60%.
I've been reporting statistics on my website for years but it was a tedious process to gather and report the info. I recently developed an interactive tool that displays detailed info about the local market for the last 11 years. There are over 20,000 graphs of info that I now make available to consumers in an easy-to-use presentation that's updated every month.
Check em' out here:
http://www.slocountyhomes.com/dashboard.html
Keith Byrd
SloCountyHomes.com
San Luis Obispo, CA
Login or register to post comments
Submitted by C.H. Naamad on June 14, 2011 - 2:32pm.
I agree with you a 100%!!!
C.H. Naamad
Boston Luxury Residential
Cell: 617-407-9740
Ch@blrboston.com
Login or register to post comments
Submitted by Travis Wright on June 14, 2011 - 2:54pm.
Well put, David. I have seen the impressive data reports coming out of ARMLS and I bet yours are awesome, too. Here's hoping your wisdom sinks in to all MLS'. T.
Travis In Texas
travis-wright@comcast.net
Login or register to post comments
Submitted by Albert Clark on June 15, 2011 - 3:10am.
Tagging on Tip O/Neils line, All Politics is Local we know "All RealEstate is Local" We provide a unique e-newsletter service to agents and see many agents adding their local market data that is fresh and usually zip code specific. I can attest that the local data is the most widely clicked on feature in the newsletters. Everyone wants to know what's going on in their marketplace. Long and Foster provides very attractive and useful Market Minute Reports. MRIS agents (David's area) is really Amp'ing up the availability of local stats with www.rbintel.com. We show agents how to use this data as they become advocates for their clients and prospects. Local stats, at the zip and neighborhood are a powerful marketing and retention tool
Albert Clark
Home Actions Relationship Platform
Scranton, PA
570 510 3507
aclark@homeactions.net
Login or register to post comments
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Perspective: A call for more useful real estate statistics
By David Charron, Tuesday, June 14, 2011.
Inman News™
Broad housing market reports are a dime a dozen these days, and if you ask me, that's a good approximation of their worth. Markets are sliced and diced and compared across the board, drawing multiple -- and often conflicting -- conclusions with shaky, obsolete data. The market's up, or maybe it's down. It's good, it's bad, and it's confusing.
For most people, even with access to all this information the results are more inconsistent than ever, often dated and out of context. But they don't have to be.
Timely and accurate information, provided on a local level with a real-world perspective, is the real estate market's most important commodity -- and the ability of the public, government, financial institutions, investors and real estate professionals to make informed decisions on local housing markets is the cornerstone of an eventual housing recovery.
Isn't it time we stop trying to drive by, looking in the rear-view mirror, and insist on seeing just the facts, clearly, as they unfold?
Article continues below
Advertise with Inman
Considering the critical role that real estate statistics play in just about every housing-related decision, it is time for our industry to rally around better data. We owe it to ourselves, our clients and our profession to insist on timeliness and clarity while delving into the motivations and methodologies of every metric we disseminate.
The most recent Case-Shiller Home Price Index of May 31 is a perfect example: It noted, of all the U.S. markets it tracks, the Washington, D.C., metro area as the only market to experience an increase in housing prices for the first quarter of 2011.
While this index may be useful for Wall Street, it hardly constitutes breaking news. Improving market conditions were reported three weeks earlier in an index produced by an MRIS subsidiary.
Metric discrepancies are about more than selling products or securing a reputation in the marketplace -- they go to the heart of how we think about information. The one real estate mantra that has remained unequivocally true through some of the most tumultuous years in the history of our profession is that all real estate is local.
By focusing on broad market-to-market comparisons instead of individual markets, we undercut our value as real estate professionals. Instead of chasing fleeting affirmations that change day in and day out, we should ensure that real estate professionals know how to read and apply local data.
Let's focus more on whether single-family homes or condos are more prevalent in a single area, the variance of seasonal market shifts, or the changes in sales activity that often precede major trends.
Let's talk about the facts as they stand today and refrain from basing decisions on reports that are already five to seven months behind the market when they hit newsstands.
We're never going to move forward as a profession by basing decisions on old data, and we'll never overcome paralysis if we compare our local markets to every other market in the country without considering the context of local driving forces.
Most people won't buy stocks today based solely on six-month-old research, nor will they decide what to wear today based on the average temperature in New York. Why don't the same principles apply to real estate?
David Charron is president and CEO of MRIS, the largest multiple listing service in the nation. MRIS facilitates more than $100 million a day in real estate transactions in the mid-Atlantic region.
Contact Inman News:
Email Letter to the Editor
Copyright 2011 Inman News
All rights reserved. This content may not be used or reproduced in any manner whatsoever, in part or in whole, without written permission of Inman News. Use of this content without permission is a violation of federal copyright law.
Comments
Reprint Rights
Community Guidelines
ShareThisYou must login or register to post a comment.
Submitted by Leon d'Ancona, B.T.L., M.T.L. on June 14, 2011 - 1:29pm.
Mr. Charron is very correct. Case-Shiller is a rather narrow index based on the principal variable used for index calculation of the price change between two arms-length sales of the same single-family home. For each sales transaction, a search is conducted to acquire information on any previous sale of the same property. If an earlier transaction is found, the two are paired and considered a “repeat sales transaction”.
In the last 25 years I have found its results very rarely reflect true small city or neighborhood values.
To dispel some of the negativity of this benchmark have a look at www.happyrenews.com a free service we provide to negate the poor press of real estate values.
Leon d'Ancona, B.T.L.,M.T.L.
President/CEO IMS Incorporated
WWW.Realestatestatistics.com
Login or register to post comments
Submitted by Keith Byrd on June 14, 2011 - 1:53pm.
Consumers want facts. Our industry's image has taken a hit from all the "now is a good time to buy" comments from agents that don't have a clue what's going on in their local market. Guess it's the difference between being a Sales person that will say anything to sell a home vs. providing a Service.
In my area, the local paper writes about the local real estate market using a single piece of data from a stats company. This value is county-wide and lumps all residential properties in one bucket and is missing any foreclosure info. In my county, foreclosure rates of sold properties in cities range from 0% to 60%.
I've been reporting statistics on my website for years but it was a tedious process to gather and report the info. I recently developed an interactive tool that displays detailed info about the local market for the last 11 years. There are over 20,000 graphs of info that I now make available to consumers in an easy-to-use presentation that's updated every month.
Check em' out here:
http://www.slocountyhomes.com/dashboard.html
Keith Byrd
SloCountyHomes.com
San Luis Obispo, CA
Login or register to post comments
Submitted by C.H. Naamad on June 14, 2011 - 2:32pm.
I agree with you a 100%!!!
C.H. Naamad
Boston Luxury Residential
Cell: 617-407-9740
Ch@blrboston.com
Login or register to post comments
Submitted by Travis Wright on June 14, 2011 - 2:54pm.
Well put, David. I have seen the impressive data reports coming out of ARMLS and I bet yours are awesome, too. Here's hoping your wisdom sinks in to all MLS'. T.
Travis In Texas
travis-wright@comcast.net
Login or register to post comments
Submitted by Albert Clark on June 15, 2011 - 3:10am.
Tagging on Tip O/Neils line, All Politics is Local we know "All RealEstate is Local" We provide a unique e-newsletter service to agents and see many agents adding their local market data that is fresh and usually zip code specific. I can attest that the local data is the most widely clicked on feature in the newsletters. Everyone wants to know what's going on in their marketplace. Long and Foster provides very attractive and useful Market Minute Reports. MRIS agents (David's area) is really Amp'ing up the availability of local stats with www.rbintel.com. We show agents how to use this data as they become advocates for their clients and prospects. Local stats, at the zip and neighborhood are a powerful marketing and retention tool
Albert Clark
Home Actions Relationship Platform
Scranton, PA
570 510 3507
aclark@homeactions.net
Login or register to post comments
HeadlinesMost Recent
Fannie matches Freddie's $1,200 agent bonu...
Top 10 real estate boomtowns: 2020
Slowdown in foreclosures affecting invento...
Zillow grows database, boosts 'Zestimate'...
Timely, local real estate data trumps nati...
Loan mods a '3-ring circus'
Tuning in the right real estate marketing...
Uscapeit: Your very own Google Street View
A post-PC-era survival guide
Late to peak, Portland real estate market...
Most Comments
My first 3-digit commission check5 smart tech tools for real estate agentsWashington short-sale brokers could lose l...Timely, local real estate data trumps nati...40% of underwater borrowers took cash out...NAR objects to 'Today' show report on sale...Your Facebook business page is worthlessHourly rate: The solution to low real esta...U.S. real estate prices see slight monthly...Google +1: a social solution for search gi...Most Emailed
Washington short-sale brokers could lose l...10 Best Markets for Real Estate InvestorsReal estate pricing tips for sellersHarvard: Real estate recovery hinges on re...Staying positive in today's real estate cl...Timely, local real estate data trumps nati...Late to peak, Portland real estate market...Ultra-high-end home has motivated sellerMajor changes likely to 'qualified residen...Decoding real estate buyer preferencesCategories
Agent adviceBuying & SellingHome ImprovementInvestingInvesting & Perso...Markets & EconomyMortgagesReal Estate & Per...Real estate broke...Real estate techn...RentalsInternationalSimilar
MLSs struggle with standards, consolidation
Bruss book awards deadline extended
Housing prices climb to global heights for latest Olympics host
Miami real estate sales soar, price slump drags on
Foreclosures drag down Atlanta real estate prices
News Archive
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
+–Change Text Size: ©2011 Inman News™HomeAbout UsDaily HeadlinesAdvertiseSyndicationMembershipContact UsPress Release SubmissionSubmit a TipPrivacyLegal
Thursday, May 26, 2011
From Steve Tyson-concerned citizen
Bob and Carol Mattocks have put over $1 million of their own money into the Tryon Palace in the last few years. The letter below was written by Bob Mattocks and was sent to the County County Board of Commission today. To the many that believe the Tryon Palace is a irreplaceable part of New Bern and Craven County, I say if we go down lets go down fighting! Call the folks listed below and let them know the facts.
You may have heard by now that the North Carolina Senate Budget will both seriously compromise Tryon Palace’s operation beginning July 1, 2011 – as well as its very survival in 2012. In all, Tryon Palace’s appropriation will be cut over $1.5 million effective July 1, 2011 and nearly $3.7 million effective July 1, 2012.
Immediate action is needed if we are going have any chance of saving the Tryon Palace that we know and love.* This budget is expected to come up for a vote in the state senate as early as next week.
The budget cuts mean that for the new fiscal year beginnings a month from now, Tryon Palace will shut down most of the majority of its services to the public and close most of the recently opened North Carolina History Center. And, with the proposed 88.8% cut, all of Tryon Palace will close on or before July 1, 2012.
Tryon Palace does not have a source of funding to make up for these draconian cuts. We cannot raise ticket prices enough to recover 88.8% of our budget. Reducing public programs and services and closing exhibition buildings means our admission receipts and private contributions will decline at an alarming and unprecedented rate with the steep decrease in visitor attendance. Any suggestion that we can sustain higher ticket prices is tantamount to suggesting the dismantling of Tryon Palace – and it will mean the end of an investment in North Carolina that the administration of ten governors and hundreds of state legislators of both parties have supported and promoted since 1959.
This is a sad moment in the history of Tryon Palace and North Carolina. For more than 50 years, Tryon Palace has operated as a very successful public-private partnership between the citizens of North Carolina and their government. We are an important state asset in every meaning of the word. We are caretakers of 15 historic buildings and a collection of over approximately 7,000 priceless objects that belong to each and every North Carolinian. Private donors have contributed more than $136.5 million in private funds and earned income over 60 years. We are stewards of North Carolina values and the heritage they represent.
To the citizens of North Carolina, Tryon Palace represents the heart of our state’s cultural patrimony and the financial commitment made by their government to its preservation. To the 30,000 school children that pass through our doors each year, Tryon Palace is a beacon of engaging and stimulating history education – of a kind that is alarmingly missing from American classrooms today. To the more than 140,000 tourists and visitors from around the country and around the world who this year will come to learn about and explore our sites, we are ambassadors for North Carolina and for its greater role in our country’s legacy. To the many small business owners – the shopkeepers, hotel and restaurant owners in our greater community of Eastern North Carolina – the visitation generated by Tryon Palace represents a key part of a $41 million economic engine that enables them to remain in business and keep employing our fellow North Carolinians.
The proposed cuts to Tryon Palace are not targeting spending that is wasteful or expendable; they are unraveling the very fabric of North Carolina’s cultural and historic identity – and we will be paying both a moral and fiscal price for it. When we are forced to close the North Carolina History Center this June, we will not only be abandoning the cutting-edge exhibits and technology that are helping make the state of North Carolina a leader in 21st-century history education outside the classroom, we will be squandering an important investment of $42.7 million in state funds and a promise made to the citizens of our state to preserve their heritage and tell the stories of the deeds and courage of past North Carolinians. When we are forced to shut down Tryon Palace in 2012, we will be abandoning the challenge of passing on to a new generation our state’s history and, along with it, an understanding of the patriotic values that history represents. It is ironic and sad that our legislators seem to be turning against what they so adamantly profess to protect. There are indeed promises to keep and not all of them can be – or should be – measured by dollar signs.
You will find attached a short news release. Please watch your email for detailed talking points coming soon for your use in getting the word out.
*The Senate will vote on the budget next week so there is not much time left for response. I urge you to speak out against these cuts to our state’s heritage and our children’s patrimony. The State budget is on a fast track and it is imperative to contact your local senator and representatives and key House and Senate leadership as soon as possible to voice your position on this far-reaching budget reduction.
Key senators include:
Sen. Phil Berger (Guilford, Rockingham), President Pro Tempore, (919) 733-5708
Sen. Peter Brunstetter (Forsyth), Appropriations Co-Chair, (919) 733-7850
Sen. Neal Hunt (Wake), Appropriations Co-Chair, (919) 733-5850
Sen. Richard Stevens (Wake), Appropriations Co-Chair, (919) 733-5653
Sen. Tom Apodaca (Buncombe, Henderson, Polk), Appropriations Vice Chair, (919) 733-5745
Sen. Linda Garrou (Forsyth), Appropriations Vice Chair, (919) 733-5620
Sen. Don East (Alleghany, Stokes, Surry, Yadkin), NER Appropriations Co-Chair, (919 733-5743
Sen. David Rouzer (Johnston, Wayne), NER Appropriations Co-Chair, (919) 733-5748
Sen. Harry Brown (Jones, Onslow), Majority Leader, (919) 715-3034
Sen. Jean Preston (Craven), Caucus Liaison, (919) 733-5706
Key House members include:
Rep. Thom Tillis (Mecklenberg), Speaker, (919) 733-3451
Rep. Paul Stam (Wake), Majority Leader, (919) 733-2962
Rep. Dale Folwell (Forsyth), Speaker Pro Tempore, (919) 733-5787
Rep. Harold Brubaker (Randolph), Appropriations Chair, (919) 715-4946
Rep. Linda Johnson (Cabarrus), Appropriations Co-Chair, (919) 733-5861
Rep. Jeff Barnhart (Cabarrus), Appropriations Co-Chair, (919) 715-2009
Rep. Normal W. Sanderson (Craven), Craven County Local Representative, (919) 733-5853
Rep. William Wainwright (Craven), Deputy Minority Leader, (919) 733-5995
Every morning when the Palace gates swing open, the voices of generations of great leaders who built this state are heard again. Please, don’t let them be silenced.
Sincerely,
Bob Mattocks
Chairman
The Tryon Palace Commission
You may have heard by now that the North Carolina Senate Budget will both seriously compromise Tryon Palace’s operation beginning July 1, 2011 – as well as its very survival in 2012. In all, Tryon Palace’s appropriation will be cut over $1.5 million effective July 1, 2011 and nearly $3.7 million effective July 1, 2012.
Immediate action is needed if we are going have any chance of saving the Tryon Palace that we know and love.* This budget is expected to come up for a vote in the state senate as early as next week.
The budget cuts mean that for the new fiscal year beginnings a month from now, Tryon Palace will shut down most of the majority of its services to the public and close most of the recently opened North Carolina History Center. And, with the proposed 88.8% cut, all of Tryon Palace will close on or before July 1, 2012.
Tryon Palace does not have a source of funding to make up for these draconian cuts. We cannot raise ticket prices enough to recover 88.8% of our budget. Reducing public programs and services and closing exhibition buildings means our admission receipts and private contributions will decline at an alarming and unprecedented rate with the steep decrease in visitor attendance. Any suggestion that we can sustain higher ticket prices is tantamount to suggesting the dismantling of Tryon Palace – and it will mean the end of an investment in North Carolina that the administration of ten governors and hundreds of state legislators of both parties have supported and promoted since 1959.
This is a sad moment in the history of Tryon Palace and North Carolina. For more than 50 years, Tryon Palace has operated as a very successful public-private partnership between the citizens of North Carolina and their government. We are an important state asset in every meaning of the word. We are caretakers of 15 historic buildings and a collection of over approximately 7,000 priceless objects that belong to each and every North Carolinian. Private donors have contributed more than $136.5 million in private funds and earned income over 60 years. We are stewards of North Carolina values and the heritage they represent.
To the citizens of North Carolina, Tryon Palace represents the heart of our state’s cultural patrimony and the financial commitment made by their government to its preservation. To the 30,000 school children that pass through our doors each year, Tryon Palace is a beacon of engaging and stimulating history education – of a kind that is alarmingly missing from American classrooms today. To the more than 140,000 tourists and visitors from around the country and around the world who this year will come to learn about and explore our sites, we are ambassadors for North Carolina and for its greater role in our country’s legacy. To the many small business owners – the shopkeepers, hotel and restaurant owners in our greater community of Eastern North Carolina – the visitation generated by Tryon Palace represents a key part of a $41 million economic engine that enables them to remain in business and keep employing our fellow North Carolinians.
The proposed cuts to Tryon Palace are not targeting spending that is wasteful or expendable; they are unraveling the very fabric of North Carolina’s cultural and historic identity – and we will be paying both a moral and fiscal price for it. When we are forced to close the North Carolina History Center this June, we will not only be abandoning the cutting-edge exhibits and technology that are helping make the state of North Carolina a leader in 21st-century history education outside the classroom, we will be squandering an important investment of $42.7 million in state funds and a promise made to the citizens of our state to preserve their heritage and tell the stories of the deeds and courage of past North Carolinians. When we are forced to shut down Tryon Palace in 2012, we will be abandoning the challenge of passing on to a new generation our state’s history and, along with it, an understanding of the patriotic values that history represents. It is ironic and sad that our legislators seem to be turning against what they so adamantly profess to protect. There are indeed promises to keep and not all of them can be – or should be – measured by dollar signs.
You will find attached a short news release. Please watch your email for detailed talking points coming soon for your use in getting the word out.
*The Senate will vote on the budget next week so there is not much time left for response. I urge you to speak out against these cuts to our state’s heritage and our children’s patrimony. The State budget is on a fast track and it is imperative to contact your local senator and representatives and key House and Senate leadership as soon as possible to voice your position on this far-reaching budget reduction.
Key senators include:
Sen. Phil Berger (Guilford, Rockingham), President Pro Tempore, (919) 733-5708
Sen. Peter Brunstetter (Forsyth), Appropriations Co-Chair, (919) 733-7850
Sen. Neal Hunt (Wake), Appropriations Co-Chair, (919) 733-5850
Sen. Richard Stevens (Wake), Appropriations Co-Chair, (919) 733-5653
Sen. Tom Apodaca (Buncombe, Henderson, Polk), Appropriations Vice Chair, (919) 733-5745
Sen. Linda Garrou (Forsyth), Appropriations Vice Chair, (919) 733-5620
Sen. Don East (Alleghany, Stokes, Surry, Yadkin), NER Appropriations Co-Chair, (919 733-5743
Sen. David Rouzer (Johnston, Wayne), NER Appropriations Co-Chair, (919) 733-5748
Sen. Harry Brown (Jones, Onslow), Majority Leader, (919) 715-3034
Sen. Jean Preston (Craven), Caucus Liaison, (919) 733-5706
Key House members include:
Rep. Thom Tillis (Mecklenberg), Speaker, (919) 733-3451
Rep. Paul Stam (Wake), Majority Leader, (919) 733-2962
Rep. Dale Folwell (Forsyth), Speaker Pro Tempore, (919) 733-5787
Rep. Harold Brubaker (Randolph), Appropriations Chair, (919) 715-4946
Rep. Linda Johnson (Cabarrus), Appropriations Co-Chair, (919) 733-5861
Rep. Jeff Barnhart (Cabarrus), Appropriations Co-Chair, (919) 715-2009
Rep. Normal W. Sanderson (Craven), Craven County Local Representative, (919) 733-5853
Rep. William Wainwright (Craven), Deputy Minority Leader, (919) 733-5995
Every morning when the Palace gates swing open, the voices of generations of great leaders who built this state are heard again. Please, don’t let them be silenced.
Sincerely,
Bob Mattocks
Chairman
The Tryon Palace Commission
Sunday, May 15, 2011
New Bern Home Sales
The Tyson Group Realtors-Steve and Jana J. Tyson want to thank you for the opportunity to market your property for sale. As part of this process, we are keeping you up to date with the current market trends. The tables below represent the closed sales in this market in the last 30 days; sales since the beginning of the year; and current inventory levels.
You will note that since the beginning of the year 87% of the homes sold in this market are under 250K and in the last 30 days 91% of the sales were under 250K.
It is definitely a buyer’s market and quite competitive. And, if you have a home over 250K, it is far more competitive. Sales over 250K represent between 10-11% of the total sales and 33.6% of the inventory. Positioning your home to outperform competitive properties is crucial, no matter what price range of home. As an example, look at sales in the last 30 days and compare to the data in the second table which represents the total percentage of inventory by price range.
Homes Sold in the 400-500K range represented 2% of total sales and 5.6% of total inventory. For that price range it is especially important to outperform the competition in order to get your home sold. The best price range compared to inventory levels is the 150-200K range with only 19.6% of the inventory and 30% of the sales.
It is also important to look at absorption rates. Looking at the best performing price range of 150K-200k, you will note that 30 units sold in the last 30 days and there are currently 312 units on the market. This represents a 10.4 month supply of inventory. This is calculated by taking 312 units on the market for that price range ÷ 30 units sold in a month. Keep in mind this is an average supply. The better-positioned properties might sell in two months while others may take 2 years. So, even in the best performing price-range, it is important to be competitive.
We want your listing to be one of those that sells quickly. Price it better than your competitors, make any necessary repairs, paint it, clean it, declutter it and stage it and we will get it sold!
We hope you find this information to be useful and ask that you compare where you stand in the market. Please call with any questions,
Steve and Jana J. Tyson
252-675-9595
PRICE-RANGES 1588 TOTAL Homes On Market 5/15/11 % of Current Inventory
0-100K 196 12.3%
101-150K 335 21.0%
151-200K 312 19.6%
201-250K 207 13.0%
251-300K 161 10.0%
301-350K 75 4.7%
351-400K 85 5.3%
401-500K 89 5.6%
501-600k 57 3.5%
601-700K 28 1.8%
701K & Over 43 2.7%
You will note that since the beginning of the year 87% of the homes sold in this market are under 250K and in the last 30 days 91% of the sales were under 250K.
It is definitely a buyer’s market and quite competitive. And, if you have a home over 250K, it is far more competitive. Sales over 250K represent between 10-11% of the total sales and 33.6% of the inventory. Positioning your home to outperform competitive properties is crucial, no matter what price range of home. As an example, look at sales in the last 30 days and compare to the data in the second table which represents the total percentage of inventory by price range.
Homes Sold in the 400-500K range represented 2% of total sales and 5.6% of total inventory. For that price range it is especially important to outperform the competition in order to get your home sold. The best price range compared to inventory levels is the 150-200K range with only 19.6% of the inventory and 30% of the sales.
It is also important to look at absorption rates. Looking at the best performing price range of 150K-200k, you will note that 30 units sold in the last 30 days and there are currently 312 units on the market. This represents a 10.4 month supply of inventory. This is calculated by taking 312 units on the market for that price range ÷ 30 units sold in a month. Keep in mind this is an average supply. The better-positioned properties might sell in two months while others may take 2 years. So, even in the best performing price-range, it is important to be competitive.
We want your listing to be one of those that sells quickly. Price it better than your competitors, make any necessary repairs, paint it, clean it, declutter it and stage it and we will get it sold!
We hope you find this information to be useful and ask that you compare where you stand in the market. Please call with any questions,
Steve and Jana J. Tyson
252-675-9595
PRICE-RANGES 1588 TOTAL Homes On Market 5/15/11 % of Current Inventory
0-100K 196 12.3%
101-150K 335 21.0%
151-200K 312 19.6%
201-250K 207 13.0%
251-300K 161 10.0%
301-350K 75 4.7%
351-400K 85 5.3%
401-500K 89 5.6%
501-600k 57 3.5%
601-700K 28 1.8%
701K & Over 43 2.7%
Monday, May 09, 2011
Home Prices
By NICK TIMIRAOS And DAWN WOTAPKA
Home values posted the largest decline in the first quarter since late 2008, prompting many economists to push back their estimates of when the housing market will hit a bottom.
.Home values fell 3% in the first quarter from the previous quarter and 1.1% in March from the previous month, pushed down by an abundance of foreclosed homes on the market, according to data to be released Monday by real-estate website Zillow.com. Prices have now fallen for 57 consecutive months, according to Zillow.
Last year, the housing market showed signs of improving as price depreciation slowed in some markets and stabilized in others. In response, a number of economists began forecasting that housing would hit a bottom in late 2011, then begin to recover. But the improvements, spurred by federal programs that gave buyers up to $8,000 in tax credits, proved fleeting. Sales collapsed when the credits expired last summer, and prices in many markets have been falling ever since.
While most economists expected sales to decline after tax credits expired, the drag on the market has been greater than many anticipated. "We expected December and January to be bad" as the market reeled from the after-effects of the tax credit, said Stan Humphries, Zillow's chief economist. But monthly declines for February and March were "really staggering," he said. They indicate "a reflection of the true underlying demand, which is now apparent because most of the tax credit is out of the system, and it's being completely overwhelmed by supply."
Mr. Humphries now believes prices won't hit bottom before next year and expects they will fall by another 7% to 9%. Other economists revised their forecasts. In April, the chief economist at mortgage company Fannie Mae, Doug Duncan, said home prices in the second quarter would be 5.3% lower than the previous-year period, down from his earlier estimate of a 2.6% decline.
Associated Press
An abundance of foreclosed homes on the market are pushing down home values.
.The estimates, which are based on data from the mid-1990s on, come from a proprietary computer program that takes into account sale prices for nearby homes that appear comparable, the size and other physical attributes of the home, its sales history and tax-assessment data, Mr. Humphries says.
Prices are decelerating in large part because the many foreclosed properties that often sell at a discount force other sellers to lower their prices. Mortgage companies Fannie Mae and Freddie Mac have sold more than 94,000 foreclosed homes during the first quarter, a new high that represented a 23% increase from the previous quarter. More could be on the way: They held another 218,000 properties at the end of March, a 33% increase from a year ago.
The companies are bracing for more bad news: On Friday, Fannie reported a $6.5 billion net loss, largely as it boosted loan-loss reserves in anticipation of falling home prices.
View Full Image
.Paul Dales, a senior U.S. economist with Capital Economics, says prices could fall by as much as 10%, down from his previous forecasts of around 5%. A March survey of more than 100 economists by MacroMarkets LLC forecasts a 1.4% drop in prices this year, down from the December estimate of a 0.2% decline.
Other home-price indexes also show weakness. The widely followed Case-Shiller index published by Standard & Poor's showed that prices climbed from April 2009 until last summer, when they started declining as tax credits expired. Today, prices are on the verge of reaching new lows, the index shows. The Case-Shiller index tracks repeat sales of previously owned homes using a three-month moving average.
According to the Zillow index, a handful of California markets and Washington, D.C., saw price appreciation last year, but that has since reversed. Mr. Humphries attributes the "double dip" in those markets, which include Los Angeles, San Francisco and San Diego, to the way in which the tax credit stimulated demand from buyers. When the tax credit went away, markets were left with rising supply from foreclosures but with less demand from buyers.
Detroit, Chicago and Minneapolis posted the largest declines during the first quarter of the top 25 metro areas tracked by Zillow, while Pittsburgh, Dallas and Washington posted the smallest declines.
To be sure, steep declines in home prices along with mortgage rates near their lowest levels in decades have helped make housing more affordable than at any time in the past 30 years, according to Zillow. Markets that have lower levels of foreclosures, such as Dallas, and those with better job-growth prospects, such as Washington, are faring better.
However, credit standards remain tight, posing another challenge for the housing market. Just as many unqualified borrowers received loans during the boom, "there are people today who probably could afford loans but can't get them," says David Berson, chief economist at PMI Group Inc. The average credit score on loans backed by Fannie Mae stood at 762 in the first quarter, up from an average of 718 for the 2001-2004 period.
Joe Sullivan, a real-estate agent in Stockton, Calif., is worried that more traditional buyers are seeing their loan applications canceled late in the process as lenders change qualification terms. If mortgage standards continue tightening, prices are "going to drop down to where only investors can get them, people with cash money," he said. Sales to absentee buyers, primarily investors, accounted for 47% of all Phoenix-area home sales in March, the highest level for any month in more than a decade, according to DataQuick, a real-estate research firm.
Christine Rice spent two years looking to buy a home in Los Angeles but found herself continually losing out to bids from investors offering to pay in cash. In September, she finally made a winning bid, paying $275,000 for a two-bedroom home. The prospect of falling prices "doesn't keep me up at night, but only because it was so cheap," says the 43-year-old tailor, who says she and her husband needed to move to have more space for their family. Her mortgage payments plus taxes are less than the rent she had been paying. "If it had been a stretch, then maybe I'd be worried," she says.
Buyers who qualify for mortgages are demanding bigger discounts as added insurance against further declines in values. Sellers, meanwhile, are balking. "More often, they don't want to take the first offer," says Jeffrey Otteau, president of Otteau Valuation Group, an East Brunswick, N.J., appraisal firm. "What they don't realize is, in an oversupplied market, the next offer is for less."
While some analysts have argued that home prices need to fall to "clearing prices" that will attract more buyers, price declines could also complicate any recovery by pushing more borrowers under water. Zillow estimates that more than 28% of borrowers owe more than their homes are worth nationally. Those numbers are much higher in hard-hit markets such as Phoenix, where more than two-thirds of borrowers owe more than their homes are worth.
Home values posted the largest decline in the first quarter since late 2008, prompting many economists to push back their estimates of when the housing market will hit a bottom.
.Home values fell 3% in the first quarter from the previous quarter and 1.1% in March from the previous month, pushed down by an abundance of foreclosed homes on the market, according to data to be released Monday by real-estate website Zillow.com. Prices have now fallen for 57 consecutive months, according to Zillow.
Last year, the housing market showed signs of improving as price depreciation slowed in some markets and stabilized in others. In response, a number of economists began forecasting that housing would hit a bottom in late 2011, then begin to recover. But the improvements, spurred by federal programs that gave buyers up to $8,000 in tax credits, proved fleeting. Sales collapsed when the credits expired last summer, and prices in many markets have been falling ever since.
While most economists expected sales to decline after tax credits expired, the drag on the market has been greater than many anticipated. "We expected December and January to be bad" as the market reeled from the after-effects of the tax credit, said Stan Humphries, Zillow's chief economist. But monthly declines for February and March were "really staggering," he said. They indicate "a reflection of the true underlying demand, which is now apparent because most of the tax credit is out of the system, and it's being completely overwhelmed by supply."
Mr. Humphries now believes prices won't hit bottom before next year and expects they will fall by another 7% to 9%. Other economists revised their forecasts. In April, the chief economist at mortgage company Fannie Mae, Doug Duncan, said home prices in the second quarter would be 5.3% lower than the previous-year period, down from his earlier estimate of a 2.6% decline.
Associated Press
An abundance of foreclosed homes on the market are pushing down home values.
.The estimates, which are based on data from the mid-1990s on, come from a proprietary computer program that takes into account sale prices for nearby homes that appear comparable, the size and other physical attributes of the home, its sales history and tax-assessment data, Mr. Humphries says.
Prices are decelerating in large part because the many foreclosed properties that often sell at a discount force other sellers to lower their prices. Mortgage companies Fannie Mae and Freddie Mac have sold more than 94,000 foreclosed homes during the first quarter, a new high that represented a 23% increase from the previous quarter. More could be on the way: They held another 218,000 properties at the end of March, a 33% increase from a year ago.
The companies are bracing for more bad news: On Friday, Fannie reported a $6.5 billion net loss, largely as it boosted loan-loss reserves in anticipation of falling home prices.
View Full Image
.Paul Dales, a senior U.S. economist with Capital Economics, says prices could fall by as much as 10%, down from his previous forecasts of around 5%. A March survey of more than 100 economists by MacroMarkets LLC forecasts a 1.4% drop in prices this year, down from the December estimate of a 0.2% decline.
Other home-price indexes also show weakness. The widely followed Case-Shiller index published by Standard & Poor's showed that prices climbed from April 2009 until last summer, when they started declining as tax credits expired. Today, prices are on the verge of reaching new lows, the index shows. The Case-Shiller index tracks repeat sales of previously owned homes using a three-month moving average.
According to the Zillow index, a handful of California markets and Washington, D.C., saw price appreciation last year, but that has since reversed. Mr. Humphries attributes the "double dip" in those markets, which include Los Angeles, San Francisco and San Diego, to the way in which the tax credit stimulated demand from buyers. When the tax credit went away, markets were left with rising supply from foreclosures but with less demand from buyers.
Detroit, Chicago and Minneapolis posted the largest declines during the first quarter of the top 25 metro areas tracked by Zillow, while Pittsburgh, Dallas and Washington posted the smallest declines.
To be sure, steep declines in home prices along with mortgage rates near their lowest levels in decades have helped make housing more affordable than at any time in the past 30 years, according to Zillow. Markets that have lower levels of foreclosures, such as Dallas, and those with better job-growth prospects, such as Washington, are faring better.
However, credit standards remain tight, posing another challenge for the housing market. Just as many unqualified borrowers received loans during the boom, "there are people today who probably could afford loans but can't get them," says David Berson, chief economist at PMI Group Inc. The average credit score on loans backed by Fannie Mae stood at 762 in the first quarter, up from an average of 718 for the 2001-2004 period.
Joe Sullivan, a real-estate agent in Stockton, Calif., is worried that more traditional buyers are seeing their loan applications canceled late in the process as lenders change qualification terms. If mortgage standards continue tightening, prices are "going to drop down to where only investors can get them, people with cash money," he said. Sales to absentee buyers, primarily investors, accounted for 47% of all Phoenix-area home sales in March, the highest level for any month in more than a decade, according to DataQuick, a real-estate research firm.
Christine Rice spent two years looking to buy a home in Los Angeles but found herself continually losing out to bids from investors offering to pay in cash. In September, she finally made a winning bid, paying $275,000 for a two-bedroom home. The prospect of falling prices "doesn't keep me up at night, but only because it was so cheap," says the 43-year-old tailor, who says she and her husband needed to move to have more space for their family. Her mortgage payments plus taxes are less than the rent she had been paying. "If it had been a stretch, then maybe I'd be worried," she says.
Buyers who qualify for mortgages are demanding bigger discounts as added insurance against further declines in values. Sellers, meanwhile, are balking. "More often, they don't want to take the first offer," says Jeffrey Otteau, president of Otteau Valuation Group, an East Brunswick, N.J., appraisal firm. "What they don't realize is, in an oversupplied market, the next offer is for less."
While some analysts have argued that home prices need to fall to "clearing prices" that will attract more buyers, price declines could also complicate any recovery by pushing more borrowers under water. Zillow estimates that more than 28% of borrowers owe more than their homes are worth nationally. Those numbers are much higher in hard-hit markets such as Phoenix, where more than two-thirds of borrowers owe more than their homes are worth.
Thursday, May 05, 2011
New Bern Home Sales 2011
2011 Home Sales to date
Total Home Sales thru 4-30-2011=383
Of the 383 (78) were new construction
The average list price was $165,000
The average Sell price was $157,000
Nationally, according to trulia, 40% of home sales were bank owned or short sales. While we are seeing distressed sales in our market, I am guessing it is closer to 25-30%.
Last year through the same time period there were 356 homes sold. So to date we are up around 8%.
Total Home Sales thru 4-30-2011=383
Of the 383 (78) were new construction
The average list price was $165,000
The average Sell price was $157,000
Nationally, according to trulia, 40% of home sales were bank owned or short sales. While we are seeing distressed sales in our market, I am guessing it is closer to 25-30%.
Last year through the same time period there were 356 homes sold. So to date we are up around 8%.
Thursday, April 28, 2011
Zoning laws
Frank Graham inherited a 600-acre wooded tract located about a half mile outside a small town in rural North Carolina. With the economy turning around he is considering moving forward with development of the tract. He has been thinking a residential subdivision and shopping center would fit nicely on this tract. He thinks a portion of the land might also be great for some industrial development or maybe even a mobile home park. Frank remembered seeing something in the papers about the county adopting zoning a few years ago. So before setting off on this project, he thinks it would be prudent to run his ideas by his cousin Eddie Graham, who is the long-term county manager for the county where this property is located.
Frank drops by Eddie’s office. After exchanging pleasantries and catching up about their mutual relatives, Frank briefly sketches out his thoughts about development of his tract. “Well,” Eddie says, “sounds like you have some good ideas. A good starting point even if a bit controversial. But I’m afraid I can’t be of much help. You need to go see the folks at town hall. City zoning applies out there.”
Frank is confused. “Eddie, I don’t follow all this government stuff the way you do, but I’m pretty sure this land is still out in the county. The town may be growing out that way, but I think I’d remember if it had been annexed. I’m pretty sure I don’t pay city taxes on that land. Are you sure about city zoning?”
“It’s outside the city,” Eddie explains, “but it has been subject to city planning and zoning a long time. They got ETJ at least a decade ago.” “
“And what, pray tell, is ETJ?” Frank asks.
“ETJ” is shorthand for extraterritorial jurisdiction. In this context, it is the authority of a city to apply its planning and development regulations to adjacent areas outside the city limits. Folks like Frank often want to know if this is legal and, if so, how it came to be.
For many years states have authorized municipal regulation of extraterritorial areas to protect public health and safety. For example in the early 1800′s Georgia allowed Savannah to prohibit rice farms within a mile of the city and Maryland allowed Baltimore to apply health regulations to ships within three miles of the city. Most other states followed suit. The North Carolina supreme court in 1912 upheld a law giving Greensboro authority to impose sanitary regulations in the area one mile beyond the city limits. State v. Rice, 158 N.C. 635, 74 S.E. 582 (1912). The legislature in 1917 gave all cities the authority to adopt similar health and safety regulations for areas within a mile of the city limits, an authority that is found today in G.S. 160A-193.
So how did the municipal authority in North Carolina to regulate nuisances in adjacent areas get extended to allow city planning, zoning, subdivision, and other regulations in extraterritorial areas?
As zoning and other land use regulations first came into widespread use in North Carolina, planning and development regulation were almost exclusively municipal concerns. Most cities of any size had adopted zoning by the late 1940s. By contrast, a handful of urban counties had gotten individual approval to adopt zoning, but most counties in the state had no authority to adopt zoning ordinances until 1959. As the post–World War II development boom took off, a good deal of the development occurred along the urban fringe, often in unregulated areas just outside of city corporate limits. The Institute of Government’s land use law expert, Phil Green, observed in 1953 that most of this fringe area development was taking place in “relatively chaotic fashion.”
To deal with this issue of unregulated development on the urban fringe, several cities sought authority to adopt “perimeter zoning.” Raleigh, Chapel Hill, Gastonia, and Tarboro were granted a one-mile ETJ for planning regulations in 1949. By 1958, nineteen municipalities had secured similar local legislation as extraterritorial zoning authority had been granted to Carrboro, Chapel Hill, Charlotte, Elizabeth City, Farmville, Gastonia, Goldsboro, Greensboro, High Point, Jacksonville, Kinston, Mooresville, Raleigh, Salisbury, Snow Hill, Spencer, Statesville, Tarboro, and Winston-Salem. At this point the legislature decided to look into whether this authority should be extended to all cities.
The Municipal Government Study Commission examined the issue in 1958 and came to this conclusion:
The Commission recognizes that municipalities have a special interest in the areas immediately adjacent to their limits. These areas, in the normal course of events, will at some time be annexed to the city, bringing with them any problems growing out of chaotic and disorganized development. Even prior to that time they affect the city. Health and safety problems arising outside the city do not always respect city limits as they spread . . . . Subdividers of land outside the city commonly wish to tie to city water and sewerage systems. New industrial and commercial development may, for a variety of reasons, take place just outside the corporate limits.
The study commission recommended that all cities with populations at least 2,500 be granted a one-mile area of extraterritorial jurisdiction and that cities with larger populations be granted up to five miles of extraterritorial jurisdiction, provided the county agreed. The commission noted the concern that residents of these areas were not entitled to vote in city elections and recommended mandatory representation of extraterritorial residents on city planning boards and boards of adjustment “to meet this objection in a practical and yet legal manner.” The legislature adopted the bulk of the study commission’s recommendations and granted statewide authority for municipal extraterritorial land use regulation in 1959. The statute on extraterritorial jurisdiction has undergone a number of amendments since its enactment. The current statutory scheme of tiered extraterritorial jurisdiction of one to three miles based on city population was adopted in 1971.
ETJ Boundary Sign
When a city adopts an extraterritorial boundary ordinance, the city acquires jurisdiction for all of its development ordinances and the county loses its jurisdiction for the same range of ordinances. This includes not only zoning and subdivision ordinances but also housing and building codes and regulations on historic districts and historic landmarks, open spaces, community development, erosion and sedimentation control, floodways, mountain ridges, and roadway corridors (though cities and counties can by mutual agreement modify this allocation). The city does not acquire, nor does the county lose, jurisdiction for regulations adopted under the general ordinance-making power of G.S. 160A-174, such as a nuisance lot, junked car, or noise ordinances. G.S. 160A-360 includes a detailed process that must be followed by a city in establishing extraterritorial jurisdiction, including newspaper notice, mailed notice, and public hearing requirements.
In certain instances, county approval must be given for a city to exercise its extraterritorial powers. G.S. 160A-360(a) requires county approval whenever a city with a population of more than 10,000 seeks to extend its extraterritorial jurisdiction beyond one mile. G.S. 160A-360(e) requires that county approval be secured for the extension of city extraterritorial jurisdiction into any area wherein the county is enforcing zoning, subdivision regulations, and the building code. This includes the one-mile area adjacent to cities.
A 2005 survey by the School of Government indicated that 62% of the responding North Carolina cities had adopted extraterritorial zoning. Cites with larger populations are far more likely to have done so than their less populous counterparts. The overwhelming majority (85%) of cities with ETJ only exercise this jurisdiction within one mile of the city limits.
A principal concern with granting municipalities extraterritorial power has been the lack of political representation for extraterritorial residents. The legal aspects of this concern were largely resolved when the U.S. Supreme Court concluded that federal constitutional guarantees of due process and equal protection are not violated when states grant municipalities extraterritorial jurisdiction without extending the right to vote in municipal elections to extraterritorial residents. Holt Civic Club v. City of Tuscaloosa, 439 U.S. 60, 70–75 (1978).
While most cities in the state have had authority to adopt extraterritorial development regulations for over a half-century, controversy remains. Several counties have established policies that limit their approval of new municipal ETJ to those areas that are planned to be annexed within a set time or where the city can show it has plans to extend urban services. Bills have been introduced in the 2011 session of the General Assembly to exempt farms from ETJ areas or farming from coverage by city regulations in the ETJ (H. 168, H. 195, S. 380), to limit ETJ to “urban purposes” (H. 797), and to prohibit ETJ where there is county zoning and to allow ETJ residents to vote in city elections (H. 281).
Frank Graham had straightforward questions. What is ETJ, is it legal, and why was it allowed? Those questions have straightforward answers. The more difficult questions revolve around how the state should state organize its local governments to deal with growth and development on urban fringes. How do we best manage the transition from rural to suburban? Who should plan for orderly and efficient growth in these areas? Which units of government should provide what types of urban services? How should provision of services be coordinated with planning and development regulation? How should cities and counties coordinate their planning efforts? How should we manage for transitions in jurisdiction over time? What is fair, reasonable, equitable, and effective for cities, for counties, and for residents and landowners in these areas? Those questions are likely to be before our city councils, county boards of commissioners, and the legislature for some time to come. As long as they are, we will continue to grapple with the broader implications of Frank’s questions.
Tags: ETJ, Jurisdiction, Planning, Zoning
This entry was posted on Tuesday, April 12th, 2011 at 3:56 PM and is filed under Land Use. You can follow any responses to this entry through the RSS 2.0 feed.
One Response to “Can a City Really Zone Land Outside the City?”
Jamie Wood
April 13, 2011 at 8:56 AMIf the city has a health and safety concern for the ETJ and its establishment does that give the city police power over the ETJ or is that still classified as the county?
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