Daily Real Estate News April 7, 2009
Economic recovery is about making people feel more confident, says Mark Zandi, chief economist of Moody’s Economy.com. Zandi evidenced increasing home sales and gains in the stock market are some promising signs that the worst is over and people will start spending again.“We’re starting to see some pent-up demand for goods,” he says.
But Zandi warns that the situation is still fragile. "Confidence is a very fickle thing. It can go from abject pessimism that pervades now to a more balanced view of the world rather quickly.”
Robert Brusca of FAO Economics is predicting strong growth in the last half of the year and a quick recovery for the labor market. "You've lost 5 million jobs. It shouldn't be hard to put 2.5 million jobs back on rather quickly after you hit bottom," he said.
Joseph Carson, chief economist at AllianceBernstein, calls improving home sales, a rising stock market, and better-than-expected retail sales in February and March good signs of a turnaround. By the time President Obama’s stimulus package takes effect, the economy will be ready, he says. "The stimulus has a much better chance of working if trends are already turning up than if it needs to halt a decline," he said.
Source: CNNMoney, Chris Isidore (04/06/2009)
Monday, April 20, 2009
10 Riskiest U.S. Housing Markets
Daily Real Estate News April 8, 2009
Even with hints of a housing recovery in some places, risky markets, dominated by nonprime mortgages, still prevail in a number of areas. Forbes magazine and Moody’s Economy.com surveyed the 200 largest metropolitan areas, adding up the number of loans to low-rated borrowers and dividing that sum by the total number of mortgages to calculate the percentage of each area’s market that is below prime.
Here are the 10 metro areas with the highest percentages of nonprime mortgages, which makes them susceptible to defaults as unemployment rates continue to rise.
Mission, Texas
Detroit
Miami
Brownsville, Texas
Merced, Calif.
Lakeland, Fla.
Bakersfield, Calif.
Fort Lauderdale, Fla.
San Bernardino, Calif.
Visalia, Calif.
Source: Forbes, Maha Atal (03/31/2009)
Even with hints of a housing recovery in some places, risky markets, dominated by nonprime mortgages, still prevail in a number of areas. Forbes magazine and Moody’s Economy.com surveyed the 200 largest metropolitan areas, adding up the number of loans to low-rated borrowers and dividing that sum by the total number of mortgages to calculate the percentage of each area’s market that is below prime.
Here are the 10 metro areas with the highest percentages of nonprime mortgages, which makes them susceptible to defaults as unemployment rates continue to rise.
Mission, Texas
Detroit
Miami
Brownsville, Texas
Merced, Calif.
Lakeland, Fla.
Bakersfield, Calif.
Fort Lauderdale, Fla.
San Bernardino, Calif.
Visalia, Calif.
Source: Forbes, Maha Atal (03/31/2009)
Sunday, April 19, 2009
Route 29 ramp supporters say turnpike commission slipped up
Members of both political parties in Chester County are decrying the Pennsylvania Turnpike Commission's recent decision to suspend work on the Route 29 slip ramp to the turnpike in Charlestown.
The long-planned project was designed to decrease traffic congestion on Route 202 and nearby residential roads. The slip ramp would feature unmanned toll booths that allow motorists with E-ZPass to get on and off the turnpike between the Downingtown and Valley Forge exits.
The decision to shelve the project followed a decision to halt a turnpike widening project set for the 13-mile stretch between those exits. The turnpike commission issued a statement that the decision to suspend development was made in reaction to a major cost increase required to meet the demands for alternative stormwater-control methods that include features such as spray irrigation and underground storage.
The (commission) has investigated several alternative stormwater-control methods and concluded that the requested methods would increase overall construction costs by as much as 50 percent.
The Route 29 slip ramp had been anticipated for years. As recently as 2007, the commission trumpeted it as the answer to traffic concerns in the Great Valley area.
Source: Daily Local; 4/12/09
The long-planned project was designed to decrease traffic congestion on Route 202 and nearby residential roads. The slip ramp would feature unmanned toll booths that allow motorists with E-ZPass to get on and off the turnpike between the Downingtown and Valley Forge exits.
The decision to shelve the project followed a decision to halt a turnpike widening project set for the 13-mile stretch between those exits. The turnpike commission issued a statement that the decision to suspend development was made in reaction to a major cost increase required to meet the demands for alternative stormwater-control methods that include features such as spray irrigation and underground storage.
The (commission) has investigated several alternative stormwater-control methods and concluded that the requested methods would increase overall construction costs by as much as 50 percent.
The Route 29 slip ramp had been anticipated for years. As recently as 2007, the commission trumpeted it as the answer to traffic concerns in the Great Valley area.
Source: Daily Local; 4/12/09
PA limits Transco gas pipeline project
The state Department of Environmental Protection (DEP) has granted natural gas company Transco the permits it needs to begin work on the controversial Downingtown pipeline replacement project — with one important exception. Transco does not have permission to start construction in a 2,600-foot segment that spans the East Branch of Brandywine Creek in East Brandywine and East Caln.
The most environmentally sensitive way to cross the creek would be by horizontal directional drilling, which involves digging under the creek, proponents of this method said. But Transco resisted this approach, saying it would be too expensive. Instead, the company proposed a cross-cut method, which diverts surface waters. But this approach would release a lot of sediment into the creek, which is a source of drinking water in Chester County, and so state legislators appealed to state DEP Acting Secretary John Hanger to carefully review Transco's permit applications.
The DEP issued a statement Thursday saying that while the agency has granted the permits that Transco needs to start construction, the company must submit an amendment advising the state how it proposes to proceed in the 2,600-foot section around the creek. About 177 county residents are affected by the project.
Source: Daily Local; 4/12/09
The most environmentally sensitive way to cross the creek would be by horizontal directional drilling, which involves digging under the creek, proponents of this method said. But Transco resisted this approach, saying it would be too expensive. Instead, the company proposed a cross-cut method, which diverts surface waters. But this approach would release a lot of sediment into the creek, which is a source of drinking water in Chester County, and so state legislators appealed to state DEP Acting Secretary John Hanger to carefully review Transco's permit applications.
The DEP issued a statement Thursday saying that while the agency has granted the permits that Transco needs to start construction, the company must submit an amendment advising the state how it proposes to proceed in the 2,600-foot section around the creek. About 177 county residents are affected by the project.
Source: Daily Local; 4/12/09
Federal Housing Rescue Plan Launches
Daily Real Estate News April 17, 2009
The Obama Administration’s program to rescue distressed home owners got off the ground this week. The program was announced on Feb. 18, but it took several weeks to put the bureaucracy in place.
Six of the nation’s largest banks signed up to participate, the Treasury Department announced Wednesday. They are JPMorgan Chase, Wells Fargo, Citigroup, GMAC Mortgage, Saxon Mortgage Services, and Select Portfolio Servicing.
Treasury says it is allocating $50 billion to the program. The Department of Housing and Urban Development will provide the rest.
The plan calls for loan servicers to reduce interest rates so a family’s monthly mortgage obligation is no more than 38 percent of its pre-tax income. Loan servicers also can reduce loan balances. After the loans are modified, the government then provides enough money to reduce payments to 31 percent of income.
Participating servicers get $1,000 a year for each modification and another $1,000 a year for three years if the borrower remains current. Servicers get an extra $500 if they do the modifications before the borrower falls behind in his payments—and the borrower gets $1,500. Also, homeowners get $1,000 a year for five years if they remain current on their payments. The money must be used to reduce their principal balances.
Source: CNN, Tami Luhby (04/16/2009)
The Obama Administration’s program to rescue distressed home owners got off the ground this week. The program was announced on Feb. 18, but it took several weeks to put the bureaucracy in place.
Six of the nation’s largest banks signed up to participate, the Treasury Department announced Wednesday. They are JPMorgan Chase, Wells Fargo, Citigroup, GMAC Mortgage, Saxon Mortgage Services, and Select Portfolio Servicing.
Treasury says it is allocating $50 billion to the program. The Department of Housing and Urban Development will provide the rest.
The plan calls for loan servicers to reduce interest rates so a family’s monthly mortgage obligation is no more than 38 percent of its pre-tax income. Loan servicers also can reduce loan balances. After the loans are modified, the government then provides enough money to reduce payments to 31 percent of income.
Participating servicers get $1,000 a year for each modification and another $1,000 a year for three years if the borrower remains current. Servicers get an extra $500 if they do the modifications before the borrower falls behind in his payments—and the borrower gets $1,500. Also, homeowners get $1,000 a year for five years if they remain current on their payments. The money must be used to reduce their principal balances.
Source: CNN, Tami Luhby (04/16/2009)
Signs Point to Improving Economy
Daily Real Estate News April 17, 2009
Economic observers point to several factors that indicate the economy in general and the housing market in particular may be on the mend.Positive signs include:
● Sales of single-family homes in March remained flat compared to January and February at $358,000, the U.S. Commerce Department reported.
● The Labor Department reported claims were down in the week ending April 11. While some argued this could just reflect the shortened Easter/Passover holiday, others took the optimistic view that some segments of the economy are stabilizing.
● New-home construction remains low because there is so much inventory—but the situation doesn’t appear to be worsening.
"The economy is still very weak, but there are some encouraging signs that support cautious optimism," Dennis Lockhart, president of the Federal Reserve Bank of Atlanta, said in a speech Thursday.
Source: The Wall Street Journal, Sudeep Reddy (04/17/2009)
Economic observers point to several factors that indicate the economy in general and the housing market in particular may be on the mend.Positive signs include:
● Sales of single-family homes in March remained flat compared to January and February at $358,000, the U.S. Commerce Department reported.
● The Labor Department reported claims were down in the week ending April 11. While some argued this could just reflect the shortened Easter/Passover holiday, others took the optimistic view that some segments of the economy are stabilizing.
● New-home construction remains low because there is so much inventory—but the situation doesn’t appear to be worsening.
"The economy is still very weak, but there are some encouraging signs that support cautious optimism," Dennis Lockhart, president of the Federal Reserve Bank of Atlanta, said in a speech Thursday.
Source: The Wall Street Journal, Sudeep Reddy (04/17/2009)
Thursday, April 9, 2009
West Chester Officials recommend condo plans
A local developer's proposal to build 58 townhouse-style condos on the former Bishop Shanahan site got a favorable recommendation from West Chester Borough's Planning Commission on Tuesday. The planning commission recommended that borough council give McCool Properties' proposal preliminary approval. Should borough council grant this approval, McCool would have to make minor adjustments to the project and seek final approval.
Chris McCool, of McCool properties, said he hopes to get final approval by June, to begin marketing the townhomes by late summer, and to break ground by late fall 2009 or early spring 2010. According to current plans, the townhouses will be three stories with a two-car garage underneath; they will have three to four bedrooms, 2.5 baths, and two additional parking spaces in back. The site, which contains the former Bishop Shanahan High School, is at West Gay and Everhart streets. The high school building, which most recently housed the Collegium Charter School, will be demolished.
Source: Daily Local; 4/6/09
Chris McCool, of McCool properties, said he hopes to get final approval by June, to begin marketing the townhomes by late summer, and to break ground by late fall 2009 or early spring 2010. According to current plans, the townhouses will be three stories with a two-car garage underneath; they will have three to four bedrooms, 2.5 baths, and two additional parking spaces in back. The site, which contains the former Bishop Shanahan High School, is at West Gay and Everhart streets. The high school building, which most recently housed the Collegium Charter School, will be demolished.
Source: Daily Local; 4/6/09
Chester County fares well on lists measuring wealth
Chester County has found itself in rather prestigious company, ranking among the top 50 counties across the country in three categories: wages and salaries, dividend income and adjusted gross income.
The report, complied by the Transactional Records Access Clearinghouse at Syracuse University, looked at individual and joint federal tax returns filed in 3,140 counties nationwide in 2007. In Adjusted Gross Income, or AGI, Chester County ranked 21 at $96,578. On the Wages and Salaries list, Chester County ranked 15 at $70,404.
Top employers include Vanguard, QVC and Sungard, which offer top wages. Chester County is home to a number of biotechnology companies as well. On the education front, Chester County has four universities and graduate campus Penn State Great Valley. In addition, the county has an excellent public and private high-school system within its borders.
In Chester County, 42.5 percent of adults 25 and older have a bachelor’s degree or higher compared to 22.4 percent in the rest of the commonwealth, he noted. For the complete list, visit www.trac.syr.edu.
Source: Main Line Suburban Life; 4/8/09
The report, complied by the Transactional Records Access Clearinghouse at Syracuse University, looked at individual and joint federal tax returns filed in 3,140 counties nationwide in 2007. In Adjusted Gross Income, or AGI, Chester County ranked 21 at $96,578. On the Wages and Salaries list, Chester County ranked 15 at $70,404.
Top employers include Vanguard, QVC and Sungard, which offer top wages. Chester County is home to a number of biotechnology companies as well. On the education front, Chester County has four universities and graduate campus Penn State Great Valley. In addition, the county has an excellent public and private high-school system within its borders.
In Chester County, 42.5 percent of adults 25 and older have a bachelor’s degree or higher compared to 22.4 percent in the rest of the commonwealth, he noted. For the complete list, visit www.trac.syr.edu.
Source: Main Line Suburban Life; 4/8/09
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