Real Estate News and Market Updates

IN THE NEWS.....

September 8, 2008

By ALAN ZIBEL, AP Business Writer 2 hours, 40 minutes ago
WASHINGTON - Mortgage rates fell sharply Monday, as investors reacted to the government's takeover of Fannie Mae and Freddie Mac. And that's exactly what homeowners like Jim Chereskin had been waiting for.
Chereskin, who lives in Naperville, Ill., took out an adjustable-rate loan in 2003 and has been worrying about how much his mortgage payments will rise once the loan resets to market rates in about 18 months.
"I don't want to have to worry about it anymore," said Chereskin, who expects to switch to a fixed-rate loan as soon as this week. That way, he said, "I can sleep at night and I'm good."
The government's takeover of Fannie Mae and Freddie Mac — mortgage titans that own or guarantee about half of all U.S. mortgages — will help borrowers who had been nervously waiting for the best time to get out of the adjustable-rate mortgages they took out during the housing boom.
But it will do little to stem the dramatic rise in foreclosures. And so far, the government's other programs to assist distressed borrowers in refinancing have had minimal impact. And that has consumer advocates calling on Fannie and Freddie to do more.
The average interest rate for a 30-year fixed rate mortgage dropped 0.3 of a percentage point to 6.04 on Monday, according to HSH Associates, and are expected to decline a little more in the coming weeks.
Paul Lueken, president of 1st Advantage Mortgage in Lombard, Ill., received an influx of calls Monday morning from Chereskin and other consumers who were wondering how the government's actions would affect mortgage rates. Lueken's message to those borrowers: Pay attention, because rates are "starting to move in your direction."
While it's nothing like the refinancing boom several years ago, Monday brought a rare moment of optimism in what has been an excruciating year for mortgage lenders, mortgage brokers, real estate agents and homebuilders.
"It's going to restore confidence...with a lot of homebuyers that are right now sitting on the fence," said Jim Gillespie, chief executive of Coldwell Banker Real Estate.
The government's actions "should make it easier for home buyers to find and qualify for a mortgage," said Timothy Eller, chief executive of homebuilder Centex Corp.
Mortgage bankers and brokers also are hoping the government will eliminate or reduce fees that the Fannie and Freddie have been charging lenders to protect against increased losses from mortgages they own or guarantee.
Those rising fees have frustrated many in the industry because they are squeezing out some borrowers. Lenders typically pass them along through higher mortgage rates or higher upfront costs.
Still, it remains to be seen whether Fannie and Freddie — under government control — will be able to do more to prevent foreclosures.
The companies already have increased payments to loan servicers — companies that collect mortgage payments on behalf of Fannie, Freddie and other lenders — to encourage them to help more borrowers work out their loan problems and avoid foreclosure.
John Courson, chief operating officer of the Mortgage Bankers Association, said that new leadership at Fannie and Freddie will provide an opportunity to review foreclosure-prevention practices. "Are there ideas that we can come up with that might be better and more effective?" he asked.
Consumer groups were already urging the government to place more pressure on Fannie and Freddie to aid borrowers in trouble.
"Since we are using tens of billions of dollars to bail out entities engaged in these lending practices, it's time for the nation to demand those same entities fix it by restructuring loans and avoiding the further demise of the housing market," said Bruce Marks, chief executive of the Neighborhood Assistance Corporation of America, a Boston-based group that helps troubled borrowers.
On Wall Street, though there are fears that lawmakers and advocacy groups will push Fannie and Freddie into more financial troubles by being too lenient on borrowers facing foreclosures.
"Now you have people who are running the companies who interests are not aligned with the shareholders, but are politically aligned," said Doug Dachille, chief executive of investment firm First Principles Capital Management in New York.
More legislation to help borrowers avoid foreclosure appears unlikely until next year at the earliest.
President Bush earlier this summer signed a bill that aims to prevent foreclosures by allowing an estimated 400,000 homeowners to swap their mortgages for more affordable loans, but only if their lender agrees to take a loss on the initial loan.
The Bush administration also has expanded guidelines for the Federal Housing Administration, which backs loans to borrowers with poor credit and small down payments. But that program has helped only a tiny number of borrowers who are actually behind on their mortgages.
Of the 356,000 borrowers projected to use the government's refinance program through the year ending Sept. 30. — about 1.5 percent, or about 5,000 consumers, are likely to have been delinquent. The Bush administration says borrowers are taking advantage of the program before they fall into delinquency and notes that the program was expanded over the summer to allow more delinquent borrowers to qualify.
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Confused or concerned about what the government's bailout of Fannie Mae and Freddie Mac mean to you? Ask AP: newsquestions(at)ap.org

 

Park City Median Home Prices Remain Stable In The First Quarter
PRESS RELEASE

25 April 2008 (Park City) - The most exclusive real estate in Utah continued to hold its value as the median price of a single-family home sold in the greater Park City area, which includes Summit and Wasatch counties, in the first quarter remained at $649,140, nearly unchanged compared to a median price of $650,000 in the first quarter of 2007, according to a report today by the Park City Board of REALTORS.®

Read More

Why Now Is a Smart Time to Buy
RISMEDIA - http://rismedia.com
Posted By Paige On March 18, 2008 @ 3:32 pm

RISMEDIA, March 19, 2008-Considering all of the negative press the housing market received in late 2007, it's more important than ever for buyers to separate fact from fiction when deciding on a time to buy a home. This report is intended to help home buyers assess the facts of the real estate market objectively......READ MORE

Park City Home Prices More Competitive Compared To Other Destination Ski Resorts,
2007 Park City Home Sales Outpace Other Resorts

14 February 2008 (Park City) – Million-dollar properties remain in high demand among the West's premier destination ski resorts. In the greater Park City area in 2007, more than $1.9 billion in total real estate volume was recorded, the second-highest level of 11 ski resorts across the Rocky Mountain West, according to a new report by the Rocky Mountain Resort Alliance (RMRA), an association representing the boards of Realtors of those 11 resorts.

At $2.6 billion, Vail, Colo., ranked No. 1 in total real estate  Read More...

Fact: Utah's economy is leading the nation, with healthy population growth, low unemployment and high job growth.

Fact: Park City continues to represent a great value when compared to other world-class ski resort towns - and Park City is one of the most accessible ski resort towns.

Fact: Park City sales volume in 2007 hit nearly $2 Billion - that's the second-best year in history and up 3% from 2006!

Fact: The Salt Lake International Airport makes for an easy commute
to Park City, whether traveling for business or the world-class skiing.

Fact: The Park City real estate market appreciated by 11% in 2007.

Fact: Local Park City REALTORS® are very involved in their community.

Fact: Park City is home to 2 of SKI Magazine's Top 10 Resorts in North America for 2007, with Deer Valley® Resort as the #1 resort for third time.

Fact: The Park City area has 10 world-class ski resorts within an hour drive.

 

 

By Liz Pulliam Weston - MSN Money

The top 10 towns for second-home investments
EscapeHomes.com identified popular second-home destinations that appreciated at least 10% a year in value between 1998 and 2002 and which may have further to go. The results are based on their own listings for real estate in these communities. Listings arent sales, though, and EscapeHomes.com doesnt reflect the whole market. In fact, real estate professionals in some of these towns (Asheville, N.C., for example) say sales were never that hot, while those in others (Park City, Utah, and Sunriver, Ore.) say appreciation has slowed in recent years. Where possible, Ive included price appreciation figures compiled by the federal Office of Federal Housing Enterprise Oversight, which oversees housing finance companies Fannie Mae and Freddie Mac and which compiles housing sales data for larger metropolitan areas.

With all those caveats aside, here are the Top 10 second-home investment markets:

• Asheville, N.C. This mountain town boasts the Biltmore Estate and a thriving arts and crafts community. Home prices are up 35% in the past five years, compared with the national median growth of 27.8%.
• Park City, Utah. The Olympics-related frenzy has cooled, but Park City is still a preferred destination for skiers and other winter sports fanatics. Prices this year are up between 5% and 7%, according to real estate broker Mike Sloan, statistician for the areas Board of Realtors.
• Ashland, Ore. Lovely weather, lovelier scenery and cultural cachet combine in Ashland. Located about halfway between Portland and San Francisco, the town is also home to Southern Oregon University and the highly regarded Oregon Shakespeare Festival. Ashlands home values have exploded in recent years. Home prices in the region that includes Ashland and nearby Medford have risen at least 40% since 1998, according to federal figures, while a local appraiser puts Ashlands average home price growth closer to 70% in that period.
• Port Townsend, Wash. This picture-perfect Victorian seaport lay nearly untouched for most of its long history until being discovered by Seattle yuppies in the 1990s. Its still quaint, but relatively mild weather and proximity to Olympic Peninsula attractions have increased its appeal for retirees and urban refugees.
• Beaufort, S.C. You know Beaufort, even if youve never been there. Youve seen it in movies like The Big Chill and Forrest Gump, and youve read about it in the pages of The Prince of Tides and The Great Santini by one-time Beaufort resident Pat Conroy. Fishing, shrimping and a National Historic Landmark District are features of The Queen of the Carolina Sea Islands.
• South Lake Tahoe, Calif. Though it shared Americas largest alpine lake with the more glamorous Lake Tahoe, Nev., this community was long the dowdy little sister. No more. Two new Marriotts have replaced a strip of decaying old motels along the main drag, and theres talk of a convention center. Median home prices are up 21% from last year, said Madeleine Gutierrez, vice president of the South Lake Tahoe Association of Realtors.
• Daytona Beach, Fla. Nineteenth-century industrial barons popularized Daytona, which is probably best known for the international raceway built in 1959 and the Daytona 500 auto race. Eight million visitors pour through annually. Home prices are up 44% in the past five years and nearly 9% in the last year alone.
• Sunriver, Ore. This central Oregon resort area is near Bend and the Mt. Bachelor ski resort, about four hours from Portland and two hours east of Eugene. Whitewater rafting, hiking and skiing are favorite pastimes. Prices on some properties are about double what they were eight years ago, realtors say, but appreciation has slowed down in recent years along with the economy.
• Myrtle Beach, S.C. The beaches along The Grand Strand -- and the areas 120 golf courses -- draw 14 million visitors annually. Despite the crush, Myrtle Beach consistently winds up in various listings of the nations best beaches and best retirement towns, with home prices rising at an 8% annual clip.
• Charlevoix, Mich. This little town lies between the shores of Lake Michigan and Lake Charlevoix in northern Michigan. The population of the town and surrounding area is 8,500 full-time residents -- which climbs to 30,000 in the summer. Golf courses and water fun are the main attractions.

 

Tuesday September 18, 2007

DEER VALLEY RESORT RANKED #1 SKI AREA IN NORTH AMERICA FOR THE THIRD TIME!

For more information on the Deer Valley Real Estate contact Tim Gaebe at 435-602-0657 or EMAIL