Daily Real Estate News March 26, 2009
More than three-quarters (78 percent) of potential first-time home buyers say that now is a good time to buy a home, despite widespread concern about the economy. Out of the 1,000 prospective U.S. first-time home buyers surveyed in early March for the CENTURY 21 First-Time Home Buyer Survey, 68 percent think now is a better time to buy than six months ago.
Prices are the driving motivation for potential first-time home buyers with more than eight of ten first-time home buyers (85 percent) saying they consider current home prices affordable and 73 percent citing that taking advantage of current prices is a major factor in their decision to buy. Interestingly, potential first-time buyers are still split between “being willing to consider an offer now” (42 percent) and “waiting for prices to go down before they seriously consider making a purchase” (48 percent).
“Current pricing, rates and incentives, such as the First Time Homebuyer Tax Credit, provide tremendous opportunities for first-time home buyers to get into the market,” said Tom Kunz, Century 21 Real Estate president and CEO. “Our research shows that while consumers still have concerns about the future of the economy, many are actively considering their options as we move into the spring selling season.”
Among the survey’s other key findings:
Bargains in the marketplace are providing additional options for buyers to consider. 56 percent of potential first-time home buyers are considering purchasing a foreclosed or short sale home, and 63 percent are open to purchasing either a “fixer-upper” or “as-is” home.
When asked to rate the features that they look for when choosing a home, price is the primary consideration with 87 percent saying this feature is “very important,” followed closely by neighborhood safety (80 percent) and the condition of the home (71 percent).
Having enough money for a down payment is a top concern of potential first-time home buyers as nearly half (46 percent) said they are “very worried” about the issue.
Most respondents (86 percent) are in the market for single family homes.
Source: Century 21
Monday, March 30, 2009
FBI Sting: 24 Caught in Mortgage Loan Fraud
Daily Real Estate News March 26, 2009
An undercover FBI sting netted 24 people in the Chicagoland area, accusing them of mail and wire fraud that helped straw buyers get $4.2 million in home mortgages.
Among those charged were mortgage brokers, loan officers, loan processors, attorneys, property appraisers, accountants, and a banker. It’s possible that each could be facing prison terms as long as 20 years.
"We want to send a message to people that, if they think they can get $150,000 out of a bank by committing mortgage fraud, and they think that's easy money, our view is they may be walking into a criminal case," said Patrick Fitzgerald, the U.S. Attorney in Chicago who announced the indictments.In nine of the cases, the straw buyers were actually undercover investigators and there was no financial loss. In the tenth case, the loans caused losses in excess of $1.1 million.
"We will not stand by while [some] exploit the financial system for their personal gain," Robert Grant, special agent in charge of the FBI's Chicago office, told a news conference.
Source: The Associated Press, Mike Robinson (03/25/2009)
An undercover FBI sting netted 24 people in the Chicagoland area, accusing them of mail and wire fraud that helped straw buyers get $4.2 million in home mortgages.
Among those charged were mortgage brokers, loan officers, loan processors, attorneys, property appraisers, accountants, and a banker. It’s possible that each could be facing prison terms as long as 20 years.
"We want to send a message to people that, if they think they can get $150,000 out of a bank by committing mortgage fraud, and they think that's easy money, our view is they may be walking into a criminal case," said Patrick Fitzgerald, the U.S. Attorney in Chicago who announced the indictments.In nine of the cases, the straw buyers were actually undercover investigators and there was no financial loss. In the tenth case, the loans caused losses in excess of $1.1 million.
"We will not stand by while [some] exploit the financial system for their personal gain," Robert Grant, special agent in charge of the FBI's Chicago office, told a news conference.
Source: The Associated Press, Mike Robinson (03/25/2009)
America's 10 Wealthiest Towns (3/09)
Daily Real Estate News March 24, 2009
The very wealthy seem to be mostly immune from recent economic downturns. BusinessWeek ranked America’s wealthiest towns based on the 2008 net income and 2008 net worth of their residents. Here's BusinessWeek's list of America’s top 10 wealthiest communities:
Brookville, N.Y.; average income: $328,404; average net worth: $1,670,075
Atherton, Calif.; $380,535; $1,648,161
Rolling Hills, Calif.; $324,190; $1,647,622
Kenilworth, Ill.; $334,634; $1,619,702
Hillsborough, Calif.; $300,943; $1,668,732
Roslyn Estates, N.Y.; $298,935; $1,664,191
Hidden Hills, Calif.; $318,843; $1,630,085
Oyster Bay Cove, N.Y.; 317,661; $1,625,524
(tie) Chevy Chase Village, Md.; $311,170; $1,635,311
(tie) Los Altos Hills, Calif.; $298,510; $1,653,676
Source: Business Week, Prashant Gopal (03/17/2009)
The very wealthy seem to be mostly immune from recent economic downturns. BusinessWeek ranked America’s wealthiest towns based on the 2008 net income and 2008 net worth of their residents. Here's BusinessWeek's list of America’s top 10 wealthiest communities:
Brookville, N.Y.; average income: $328,404; average net worth: $1,670,075
Atherton, Calif.; $380,535; $1,648,161
Rolling Hills, Calif.; $324,190; $1,647,622
Kenilworth, Ill.; $334,634; $1,619,702
Hillsborough, Calif.; $300,943; $1,668,732
Roslyn Estates, N.Y.; $298,935; $1,664,191
Hidden Hills, Calif.; $318,843; $1,630,085
Oyster Bay Cove, N.Y.; 317,661; $1,625,524
(tie) Chevy Chase Village, Md.; $311,170; $1,635,311
(tie) Los Altos Hills, Calif.; $298,510; $1,653,676
Source: Business Week, Prashant Gopal (03/17/2009)
Survey: Chester County residents like what they have
Life is good — except in traffic. In a nutshell, that is the message Chester County residents gave to researchers surveying their opinions for county commissioners, who plan to use the responses while developing a long-range strategic plan to deliver county services.
The survey found that a significant majority of respondents say the county is a better or as good a place to live as it was five years ago. It remains an excellent place to raise a family and a good place to get an education and buy a home, respondents said.
The respondents liked the county’s open space and its convenient location. They found county workers to be courteous and knowledgeable, and they would be willing to pay higher taxes if it meant children were not abused and criminals were imprisoned. But they did not like the county’s roads, traffic, taxes and cost of living, and they said land-use planning is a concern.
Respondents were concerned about overdevelopment and had little time or inclination for a property reassessment. Key indicators show 75 percent of residents believe Chester County is a good place to live, and more than half (55 percent) say it is an excellent place to raise a family. One in three citizens responded that open space is the best thing about Chester County life.
Source: Main Line Suburban Life; 3/25/09
The survey found that a significant majority of respondents say the county is a better or as good a place to live as it was five years ago. It remains an excellent place to raise a family and a good place to get an education and buy a home, respondents said.
The respondents liked the county’s open space and its convenient location. They found county workers to be courteous and knowledgeable, and they would be willing to pay higher taxes if it meant children were not abused and criminals were imprisoned. But they did not like the county’s roads, traffic, taxes and cost of living, and they said land-use planning is a concern.
Respondents were concerned about overdevelopment and had little time or inclination for a property reassessment. Key indicators show 75 percent of residents believe Chester County is a good place to live, and more than half (55 percent) say it is an excellent place to raise a family. One in three citizens responded that open space is the best thing about Chester County life.
Source: Main Line Suburban Life; 3/25/09
Districts react to declining land value: Officials warn that as property values fall, tax rates will rise
The recent decline in real estate value has prompted droves of local land owners to seek reassessments to lower their property taxes. In 2004, the Chester County Board of Assessment Appeals received 824 reassessment requests. That number rose to 1,342 in 2005 and stayed about the same in 2006 and 2007.
In 2008, however, nearly 2,000 requests were filed through the county’s Department of Assessments. In turn, this has strained the budgets of public school districts, which rely on local property taxes for much of their funding. Not all of Chester County's school districts have been equally affected. While finance directors of the West Chester Area and the Downingtown Area school districts said reassessments have caused substantial declines in property tax income, the finance directors of Coatesville Area, Great Valley, and Tredyffrin/Easttown school districts said they've seen little change. Property owners in Chester County can file reassessment appeals from May 1 to Aug. 1. The board of assessment appeals — not local school districts or municipalities — is responsible for reassessing properties.
Source: Daily Local; 3/23/09
In 2008, however, nearly 2,000 requests were filed through the county’s Department of Assessments. In turn, this has strained the budgets of public school districts, which rely on local property taxes for much of their funding. Not all of Chester County's school districts have been equally affected. While finance directors of the West Chester Area and the Downingtown Area school districts said reassessments have caused substantial declines in property tax income, the finance directors of Coatesville Area, Great Valley, and Tredyffrin/Easttown school districts said they've seen little change. Property owners in Chester County can file reassessment appeals from May 1 to Aug. 1. The board of assessment appeals — not local school districts or municipalities — is responsible for reassessing properties.
Source: Daily Local; 3/23/09
Monday, March 23, 2009
How Will Foreclosure Effect Credit Scores?
Daily Real Estate News March 16, 2009
The amount of damage to a credit score caused by foreclosure, deed in lieu or a short sale during 2008 and 2009 may be mitigated by the slower economic times, say some credit and legal experts.FICO may have to adjust its credit scores to lessen the impact of a foreclosure in the last two years, says Todd J. Zywicki, a professor of law at George Mason University.
''It just seems obvious that a foreclosure in 2008 or 2009 doesn't have as much information value as a foreclosure five years ago,'' he says. ''To the extent that foreclosure doesn't predict future behavior as much as it did in the past, you'd expect that the FICO algorithm would change to adjust for that.''
One of the country’s largest credit unions, Golden 1 has already figured out a way to lend to people with a foreclosure on their record by offering a mortgage repair loan specifically for those who have lost a home to foreclosure and who want to buy a new one.
BECU, another large credit union based in Washington State, is about to present a program to fellow lenders, ''How to Lend to the Newly Credit Impaired.”
Source: The New York Times, Ron Lieber (03/14/2009)
The amount of damage to a credit score caused by foreclosure, deed in lieu or a short sale during 2008 and 2009 may be mitigated by the slower economic times, say some credit and legal experts.FICO may have to adjust its credit scores to lessen the impact of a foreclosure in the last two years, says Todd J. Zywicki, a professor of law at George Mason University.
''It just seems obvious that a foreclosure in 2008 or 2009 doesn't have as much information value as a foreclosure five years ago,'' he says. ''To the extent that foreclosure doesn't predict future behavior as much as it did in the past, you'd expect that the FICO algorithm would change to adjust for that.''
One of the country’s largest credit unions, Golden 1 has already figured out a way to lend to people with a foreclosure on their record by offering a mortgage repair loan specifically for those who have lost a home to foreclosure and who want to buy a new one.
BECU, another large credit union based in Washington State, is about to present a program to fellow lenders, ''How to Lend to the Newly Credit Impaired.”
Source: The New York Times, Ron Lieber (03/14/2009)
Some See Detroit As Land of Opportunity
Daily Real Estate News March 18, 2009
Home prices in the Detroit area have cratered, creating opportunities for investors who are snapping up property to renovate and flip or just rent out.
Jeremy Burgess is typical. He started his company Urban Detroit Wholesalers in 2007 with partner Jared Pomranky. They buy houses for a few thousand dollars or less because owners who are leaving the area want to get rid of the tax burden and liability. Burgess and Pomranky look for homes in working-class neighborhoods on the outskirts of the city. They do a little fix-up and painting, and then sell the homes to out-of-state investors for an average of $35,000. Local investors, they say, have a hard time seeing the opportunities, Burgess says.
Burgess claims he averages a 12 percent to 20 percent return on investment. He believes home prices will go back up once financing is easier to get. "This last drop I think is totally due to lack of financing options, and when cash is king, prices drop significantly. I see it as an artificial drop in value, and I am obviously taking advantage of it. So are my investors," Burgess says.
Source: CNN, Tristan Smith (03/17/2009)
Home prices in the Detroit area have cratered, creating opportunities for investors who are snapping up property to renovate and flip or just rent out.
Jeremy Burgess is typical. He started his company Urban Detroit Wholesalers in 2007 with partner Jared Pomranky. They buy houses for a few thousand dollars or less because owners who are leaving the area want to get rid of the tax burden and liability. Burgess and Pomranky look for homes in working-class neighborhoods on the outskirts of the city. They do a little fix-up and painting, and then sell the homes to out-of-state investors for an average of $35,000. Local investors, they say, have a hard time seeing the opportunities, Burgess says.
Burgess claims he averages a 12 percent to 20 percent return on investment. He believes home prices will go back up once financing is easier to get. "This last drop I think is totally due to lack of financing options, and when cash is king, prices drop significantly. I see it as an artificial drop in value, and I am obviously taking advantage of it. So are my investors," Burgess says.
Source: CNN, Tristan Smith (03/17/2009)
Underwater Owners May Keep Walking Away
Daily Real Estate News March 18, 2009
Housing economists are growing increasingly worried that home owners whose properties are underwater will stop trying to pay their mortgages and just walk away.
In all, the total value of U.S. residential properties fell to $19.1 trillion in December 2008 from $21.5 trillion in December 2007. About 52 percent of Nevada mortgages are underwater, followed by 32 percent in Arizona and 30 percent in both Florida and California, according to researcher First American CoreLogic.
"Should the downward spiral in home prices, neighborhood condition, and equity deterioration continue, more and more mainstream borrowers are likely to walk away from their homes," Credit Suisse said in a December report.
Source: Reuters News, Lisa Baertlein (03/17/2009)
Housing economists are growing increasingly worried that home owners whose properties are underwater will stop trying to pay their mortgages and just walk away.
In all, the total value of U.S. residential properties fell to $19.1 trillion in December 2008 from $21.5 trillion in December 2007. About 52 percent of Nevada mortgages are underwater, followed by 32 percent in Arizona and 30 percent in both Florida and California, according to researcher First American CoreLogic.
"Should the downward spiral in home prices, neighborhood condition, and equity deterioration continue, more and more mainstream borrowers are likely to walk away from their homes," Credit Suisse said in a December report.
Source: Reuters News, Lisa Baertlein (03/17/2009)
Mortgage-Help Site, Call-in Number Go Live
Daily Real Estate News March 19, 2009
The U.S. Treasury Department went live on March 19 with its Making Home Affordable program, which aims to help home owners refinance or modify their mortgages. The campaign includes a Web site at makinghomeaffordable.gov as well as a telephone hotline number at (888) 995-4673. The federal government is targeting 9 million home owners whose loans are held by Fannie Mae or Freddie Mac.
Source: Indianapolis Star (03/19/09)
The U.S. Treasury Department went live on March 19 with its Making Home Affordable program, which aims to help home owners refinance or modify their mortgages. The campaign includes a Web site at makinghomeaffordable.gov as well as a telephone hotline number at (888) 995-4673. The federal government is targeting 9 million home owners whose loans are held by Fannie Mae or Freddie Mac.
Source: Indianapolis Star (03/19/09)
Scammers Target Troubled Borrowers
Daily Real Estate News March 16, 2009
Scam artists are proliferating, attempting to make money off troubled borrowers interested in taking advantage of President Barack Obama’s foreclosure-prevention plan.
The firms charge fees for what they tell borrowers will be quick and effective negotiations with banks. In most cases, the firms take the home owners’ money – often more than $1,000 – and do nothing.
The Federal Reserve recently issued this advice for people seeking to modify their mortgages:
Work only with HUD-approved nonprofit counselors. (See www.hud.gov)
Don't agree to pay a fee before you are provided with the promised service.
Beware of people offering "guaranteed" results.
Don't sign blank forms or documents you haven't read.
Source: The Wall Street Journal, James R. Hagerty (03/11/2009)
Scam artists are proliferating, attempting to make money off troubled borrowers interested in taking advantage of President Barack Obama’s foreclosure-prevention plan.
The firms charge fees for what they tell borrowers will be quick and effective negotiations with banks. In most cases, the firms take the home owners’ money – often more than $1,000 – and do nothing.
The Federal Reserve recently issued this advice for people seeking to modify their mortgages:
Work only with HUD-approved nonprofit counselors. (See www.hud.gov)
Don't agree to pay a fee before you are provided with the promised service.
Beware of people offering "guaranteed" results.
Don't sign blank forms or documents you haven't read.
Source: The Wall Street Journal, James R. Hagerty (03/11/2009)
Chinese Drywall Leads to Lawsuits
Daily Real Estate News March 17, 2009
Several home owners are blaming some drywall imported from China in the wake of Hurricane Katrina and Wilma as giving off a foul odor and causing a range of health problems, according to a lawsuit.
Several class action lawsuits have been filed, including claims against U.S. homebuilder Lennar and a Chinese drywall manufacturer, Knauf Plasterboard Tianjin. Lennar, which has been replacing drywall in some homes, says it didn’t approve the use of the imported drywall. Knauf says it wasn’t necessarily the manufacturer and that the drywall has passed tests that have indicated that it produces no health hazards.The Consumer Product Safety Commission and Florida regulators are investigating. One estimate suggests 60,000 homes may contain the drywall.
Attorneys who have filed the suits claim residents have suffered rashes, new allergies, asthma and sore throats. Victims should be compensated and their health monitored, says attorney Ervin Gonzalez of Colson Hicks Eidson in Washington, D.C.
Source: USA Today, Julie Schmit (03/17/2009)
Several home owners are blaming some drywall imported from China in the wake of Hurricane Katrina and Wilma as giving off a foul odor and causing a range of health problems, according to a lawsuit.
Several class action lawsuits have been filed, including claims against U.S. homebuilder Lennar and a Chinese drywall manufacturer, Knauf Plasterboard Tianjin. Lennar, which has been replacing drywall in some homes, says it didn’t approve the use of the imported drywall. Knauf says it wasn’t necessarily the manufacturer and that the drywall has passed tests that have indicated that it produces no health hazards.The Consumer Product Safety Commission and Florida regulators are investigating. One estimate suggests 60,000 homes may contain the drywall.
Attorneys who have filed the suits claim residents have suffered rashes, new allergies, asthma and sore throats. Victims should be compensated and their health monitored, says attorney Ervin Gonzalez of Colson Hicks Eidson in Washington, D.C.
Source: USA Today, Julie Schmit (03/17/2009)
The REALTORS® Confidence Index: Measuring Expectations
By Meredith Dunn and Wannasiri Chompoopet
NAR Research
Current economic trends are certainly informing consumers' feelings about the nation's economic well-being, as well as their own. As measured by The Conference Board, consumer confidence has been on a continual downturn since November of 2008. In fact, from February of 2008 to February of 2009, the consumer confidence index is off more than 67 percent!
But REALTORS® confidence in and expectations for the housing market has improved recently. Expectations of real estate practitioners for residential properties for the next six months are more optimistic than they've been in a while. Below we summarize the latest figures from NAR's REALTORS® Confidence Index.
About the REALTORS® Confidence Index
The REALTORS® Confidence Index - RCI - is a key indicator of housing market strength based on a monthly survey of 3,500 real estate practitioners. Actually, the RCI comprises several indexes about different housing market conditions. Practitioners are asked about their expectations for home sales, prices and market conditions. More specifically, the RCI survey is a monthly fax survey that asks practitioners three basic questions pertaining to business in their region:
How would you describe the current housing market in your region?
What are your expectations for the housing market over the next six months in your region?
How do you rate the traffic in your region?
These three questions are asked for major segments of the housing sector including, single-family homes, townhomes/duplexes, and condominiums. These same questions are asked each month. Answers are then quantified and used to create the confidence index.
The RCI Indexes are calculated as follows: Respondents indicate whether conditions are, or are expected to be "strong" (100 points), "moderate" (50 points), and "weak" (0 points). The results are the average score for each question. A score of 50 is the threshold between a "strong" and a "weak" condition.
The RCI for January
The REALTORS® Confidence Index for single-family home sales rose for the first time in eight months from 18.8 in December of 2008 to 23.2 in January. The index for townhouses showed a similar trend, and rose to 13.1 from 11.4. The condo index also increased in January, from 9.6 in December to 11.2 in January. It should be noted, however, that the indexes for all three types of housing, are still well below last year's levels.
Confidence was highest in the Northeast and lowest in the Midwest. Existing Home Sales data for January show that prices fell the most in the Northeast, at 14.7 percent. Perhaps the rising confidencefactor in the Northeast is related to buyers beginning to take advantage of the lower prices.
Expectations of real estate practitioners for residential properties for the next six months are optimistic, and increased for all three types of housing. The single-family homes sales expectation index climbed to 34.0 from 28.3 in December. The townhouse and condo figures were 20.2 and 17.8, respectively.
The index measuring the prospective traffic of home buyers was at 31.7 in January - an improvement from December's reading of 25.1 and also an improvement over the reading of 30.7 in January of 2008. The seller's traffic index for January was 45.1 which is virtually flat compared to a month ago.
Other Survey Questions
In addition to the standard questions, each month the RCI survey features questions about a timely aspect of the housing market. In January, survey participants were asked about their most recent home buyer client experience. More than a third of survey respondents indicated that their most recent buyer client was a first-time purchaser. A third reported that their buyer purchased a foreclosed home, and just under a third of practitioners indicated that their most recent buyer client used an FHA loan for the home purchase.
Some concerns
While REALTORS® confidence is higher than last month and their expectations for their markets are in general more optimistic, they are not as confident about any upswing in home prices. The majority of survey participants - 61 percent - felt that home prices will fall over the next year. Only 39 percent thought that home prices would rise over the same period. Their view matches that of the NAR forecast which projects median prices for existing homes will decline in 2009.
NAR Research
Current economic trends are certainly informing consumers' feelings about the nation's economic well-being, as well as their own. As measured by The Conference Board, consumer confidence has been on a continual downturn since November of 2008. In fact, from February of 2008 to February of 2009, the consumer confidence index is off more than 67 percent!
But REALTORS® confidence in and expectations for the housing market has improved recently. Expectations of real estate practitioners for residential properties for the next six months are more optimistic than they've been in a while. Below we summarize the latest figures from NAR's REALTORS® Confidence Index.
About the REALTORS® Confidence Index
The REALTORS® Confidence Index - RCI - is a key indicator of housing market strength based on a monthly survey of 3,500 real estate practitioners. Actually, the RCI comprises several indexes about different housing market conditions. Practitioners are asked about their expectations for home sales, prices and market conditions. More specifically, the RCI survey is a monthly fax survey that asks practitioners three basic questions pertaining to business in their region:
How would you describe the current housing market in your region?
What are your expectations for the housing market over the next six months in your region?
How do you rate the traffic in your region?
These three questions are asked for major segments of the housing sector including, single-family homes, townhomes/duplexes, and condominiums. These same questions are asked each month. Answers are then quantified and used to create the confidence index.
The RCI Indexes are calculated as follows: Respondents indicate whether conditions are, or are expected to be "strong" (100 points), "moderate" (50 points), and "weak" (0 points). The results are the average score for each question. A score of 50 is the threshold between a "strong" and a "weak" condition.
The RCI for January
The REALTORS® Confidence Index for single-family home sales rose for the first time in eight months from 18.8 in December of 2008 to 23.2 in January. The index for townhouses showed a similar trend, and rose to 13.1 from 11.4. The condo index also increased in January, from 9.6 in December to 11.2 in January. It should be noted, however, that the indexes for all three types of housing, are still well below last year's levels.
Confidence was highest in the Northeast and lowest in the Midwest. Existing Home Sales data for January show that prices fell the most in the Northeast, at 14.7 percent. Perhaps the rising confidencefactor in the Northeast is related to buyers beginning to take advantage of the lower prices.
Expectations of real estate practitioners for residential properties for the next six months are optimistic, and increased for all three types of housing. The single-family homes sales expectation index climbed to 34.0 from 28.3 in December. The townhouse and condo figures were 20.2 and 17.8, respectively.
The index measuring the prospective traffic of home buyers was at 31.7 in January - an improvement from December's reading of 25.1 and also an improvement over the reading of 30.7 in January of 2008. The seller's traffic index for January was 45.1 which is virtually flat compared to a month ago.
Other Survey Questions
In addition to the standard questions, each month the RCI survey features questions about a timely aspect of the housing market. In January, survey participants were asked about their most recent home buyer client experience. More than a third of survey respondents indicated that their most recent buyer client was a first-time purchaser. A third reported that their buyer purchased a foreclosed home, and just under a third of practitioners indicated that their most recent buyer client used an FHA loan for the home purchase.
Some concerns
While REALTORS® confidence is higher than last month and their expectations for their markets are in general more optimistic, they are not as confident about any upswing in home prices. The majority of survey participants - 61 percent - felt that home prices will fall over the next year. Only 39 percent thought that home prices would rise over the same period. Their view matches that of the NAR forecast which projects median prices for existing homes will decline in 2009.
Friday, March 20, 2009
Gas company pursues eminent domain for pipeline
Williams Transco, the natural gas giant who has a project to replace a seven-mile section of their pipeline in the county, has started condemnation proceedings against 36 property owners who have not accepted offers made for their land. The company will be filing a joint motion expressing its need for immediate access. The action was criticized by legislators who have sought to help residents whose property is being severely affected by the natural gas company's desire for additional right-of-way for the project. The county is crisscrossed with existing pipelines by eight different companies that bring natural gas, liquid gas or other petroleum products through 62 of Chester County's 73 municipalities. Currently, at least three natural gas companies have new pipeline or pipeline expansion projects going on in the county.
Source: Daily Local; 3/11/09
Source: Daily Local; 3/11/09
Thursday, March 19, 2009
New-home construction logs unexpected gain
By JEANNINE AVERSA
Ap Economics Writer
Tue Mar 17
WASHINGTON – The number of new housing projects that builders broke ground on in February rose sharply, defying economists' forecasts for yet another drop in activity.
The Commerce Department reported Tuesday that construction of new homes and apartments jumped 22.2 percent from January to a seasonally adjusted annual rate of 583,000 units. Economists were expecting construction to drop to a pace of around 450,000 units.
February's pickup was led by a big increase in apartment construction.
By region, all parts of the country reported an increase in overall housing construction, except for the West, which led the housing boom and has been hard hit by the bust.
Some economists said the new housing figures offered a glimmer of hope.
"While it may be premature to call an absolute bottom in residential construction, we are clearly getting close," said Adam York, economist at Wachovia.
Overall housing construction activity fell to a pace of 477,000 units in January, according to revised figures. That was a little higher than first reported but still marked a record low.
Applications for building permits, considered a reliable sign of future activity, also rose in February by 3 percent to an annual rate of 547,000. Economists were expecting permits to fall to a pace of 500,000 units.
Even with February's rare burst of activity, housing construction is down a whopping 47.3 percent from a year ago.
"This is a temporary rebound, not a recovery," said Ian Shepherdson, chief U.S. economist at High Frequency Economics.
The collapse of the once high-flying housing market has been devastating to the United States' economic health.
Its spreading fallout has contributed to big pullbacks by consumers and businesses alike, plunging the economy into a recession now in its second year.
The Obama administration has announced a $75 billion program to stem skyrocketing home foreclosures, which have dumped even more properties on an already crippled market.
More than 2 million American homeowners faced foreclosure proceedings last year, and that number could soar as high as 10 million in the coming years depending on the severity of the recession, according to a report last month by Credit Suisse.
Home mortgages are harder to come by because of the credit crisis and unemployment is at a quarter-century peak of 8.1 percent, factors that will make it difficult for the depressed housing market to snap back to full health.
Builders aren't optimistic that will happen any time soon.
The National Association of Home Builders' housing market index was flat in March at a reading of nine. That was one point above the all-time low reached in January. Readings lower than 50 indicate negative sentiment about the market. The index has been below 10 since November, reflecting the toughest market conditions in a generation.
Tighter lending standards for home mortgages, rising defaults and fear about the housing market's future have sidelined buyers, an absence felt acutely by homebuilders such as D.R. Horton Inc., Pulte Homes Inc. and Centex Corp.
Ap Economics Writer
Tue Mar 17
WASHINGTON – The number of new housing projects that builders broke ground on in February rose sharply, defying economists' forecasts for yet another drop in activity.
The Commerce Department reported Tuesday that construction of new homes and apartments jumped 22.2 percent from January to a seasonally adjusted annual rate of 583,000 units. Economists were expecting construction to drop to a pace of around 450,000 units.
February's pickup was led by a big increase in apartment construction.
By region, all parts of the country reported an increase in overall housing construction, except for the West, which led the housing boom and has been hard hit by the bust.
Some economists said the new housing figures offered a glimmer of hope.
"While it may be premature to call an absolute bottom in residential construction, we are clearly getting close," said Adam York, economist at Wachovia.
Overall housing construction activity fell to a pace of 477,000 units in January, according to revised figures. That was a little higher than first reported but still marked a record low.
Applications for building permits, considered a reliable sign of future activity, also rose in February by 3 percent to an annual rate of 547,000. Economists were expecting permits to fall to a pace of 500,000 units.
Even with February's rare burst of activity, housing construction is down a whopping 47.3 percent from a year ago.
"This is a temporary rebound, not a recovery," said Ian Shepherdson, chief U.S. economist at High Frequency Economics.
The collapse of the once high-flying housing market has been devastating to the United States' economic health.
Its spreading fallout has contributed to big pullbacks by consumers and businesses alike, plunging the economy into a recession now in its second year.
The Obama administration has announced a $75 billion program to stem skyrocketing home foreclosures, which have dumped even more properties on an already crippled market.
More than 2 million American homeowners faced foreclosure proceedings last year, and that number could soar as high as 10 million in the coming years depending on the severity of the recession, according to a report last month by Credit Suisse.
Home mortgages are harder to come by because of the credit crisis and unemployment is at a quarter-century peak of 8.1 percent, factors that will make it difficult for the depressed housing market to snap back to full health.
Builders aren't optimistic that will happen any time soon.
The National Association of Home Builders' housing market index was flat in March at a reading of nine. That was one point above the all-time low reached in January. Readings lower than 50 indicate negative sentiment about the market. The index has been below 10 since November, reflecting the toughest market conditions in a generation.
Tighter lending standards for home mortgages, rising defaults and fear about the housing market's future have sidelined buyers, an absence felt acutely by homebuilders such as D.R. Horton Inc., Pulte Homes Inc. and Centex Corp.
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