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28 Jul
U.S. Economy: Home Prices Rise, Consumer Confidence Declines Share
By Courtney Schlisserman and Shobhana Chandra July 28 (Bloomberg) — A gauge of U.S. house prices posted its first monthly gain in three years, providing some solace to consumers shaken by rising joblessness. The S&P/Case-Shiller home-price index rose 0.5 percent in May from the prior month, the first gain since July 2006 and biggest since May of that year, the group said today in New York. A Conference Board report showed consumer confidence this month fell more than forecast. Stabilization of the worst housing market since the 1930s and a rebound in stocks may bring an end this quarter to the record slump in household wealth. Even so, Americans are likely to boost savings and limit spending as unemployment is projected to top 10 percent by early 2010, restraining any recovery from the deepest recession in five decades. “The fact that home prices may be finding some semblance of stability is good news that things are not likely to get worse,” said Mark Vitner, a senior economist at Wells Fargo Securities LLC in Charlotte, North Carolina. “Folks are still concerned about their jobs” and “the loss of housing wealth is going to weigh on consumer spending for years to come.” Stocks fell and Treasury securities rose after the worse- than-projected confidence report. The Standard & Poor’s 500 index was down 0.5 percent to 976.75 at 11:00 a.m. in New York. The yield in the benchmark 10-year Treasury note fell to 3.67 percent from 3.72 percent late yesterday. Less Confidence The Conference Board’s confidence index dropped to 46.6, a second consecutive decline, following a reading of 49.3 in June, the New York-based research group said. The figure reached a record low of 25.3 in February. The S&P/Case-Shiller home-price index was down 17.1 percent from May 2008, less than projected and the smallest year-over- year drop in nine months. Economists forecast the index would drop 17.9 percent from a year earlier, according to the median of 32 projections in a Bloomberg News survey. Estimates ranged from declines of 17.5 percent to 18.3 percent. Compared with a month earlier, 14 cities showed price gains, led by a 4.1 percent jump in Cleveland and a 1.9 percent increase in Dallas. The price figures aren’t adjusted for seasonal effects, so economists prefer to focus on year-over-year changes. Adjusted for seasonal changes, the index fell 0.2 percent in May, the smallest monthly decline since February 2007. Signs of ‘Bottom’ “If you’re looking for a bottom, there’s a lot of good stuff here,” Karl Case, an economics professor at Wellesley College and co-creator of the S&P/Case-Shiller index, said on a Bloomberg Radio interview. “If you’re looking for a real recovery, it’s going to take some time.” The report buttresses other measures that have shown a deceleration in price declines. The Federal Housing Finance Agency said last week that its purchase-only price index was down 5.6 percent in May from a year earlier, the smallest annual drop in 10 months. The FHFA index is a national measure that tracks houses bought with mortgages purchased by Fannie Mae or Freddie Mac and excludes many of the foreclosure sales and properties bought with non-conventional mortgages. In addition to being limited to 20 areas, the S&P/Case-Shiller report also includes distressed properties and those bought with non-conventional loans such as jumbo mortgages. The Conference Board’s measure of present conditions decreased to 23.4 from 25 the prior month, reflecting deteriorating perceptions on job availability. The gauge of expectations for the next six months fell to 62 from 65.5 as Americans grew more pessimistic about jobs and income prospects. Other Measures Today’s figures corroborate other reports. The Reuters/University of Michigan final index of consumer sentiment declined in July for the first time in five months as surging unemployment and stagnant wages shook households. The economy has lost 6.5 million jobs since the recession began in December 2007, making it the biggest employment slump of any downturn in the last eight decades. Economists surveyed by Bloomberg predict the unemployment rate will exceed 10 percent by the first quarter of next year from 9.5 percent in June, the highest level since 1983. Declines in home prices and stocks cut household net worth by $13.9 trillion through the first quarter, according to figures from the Federal Reserve. The need to rebuild tattered finances has prompted Americans to limit spending and boost savings. “We are preparing for this recovery to take a while to pick up steam,” Frits van Paasschen, chief executive officer of Starwood Hotels & Resorts Worldwide Inc., said in a conference call with analysts last week. The third-largest U.S. lodging company’s second-quarter earnings beat analysts’ estimates. Fed Chairman Bernanke said July 22 he cannot “guarantee by any means” that declines in home prices are over “but we have seen a few positive indicators.” The central bank has established a $1.25 trillion program to purchase securities backed by home loans in an effort to put a floor under the housing market and lower borrowing costs. To contact the reporter on this story: Courtney Schlisserman in Washington at cschlisserma@bloomberg.net; Shobhana Chandra in Washington at schandra1@bloomberg.net Last Updated: July 28, 2009 11:11 EDT
23 May
Raleigh -Triangle Area noted as on the upswing on Today Show
On NBC’s The Today Show The Raleigh -Triangle area was named as the #2 area in the country rebounding from the recession. Here’s a link to the clip:
23 May
Chapel Hill Planning Department moving towards expedited permitting process
The Chapel Hill Planning Department is taking action to implement new policies that will greatly expedite the permitting process for residential and commercial development. Earlier this month they launched “express reviews” for projects such as fences, decks, small patios, steps, walk-ways and irrigation systems. The long term goal is to establish “web” applications by the summer of 2010 that will enable a user to make their application, pay and track fees, and track the entire process on line. They are also working on reducing the number of reviews currently required for projects and in short to streamline the entire permitting process.
Sites you may want to save for future reference include:
www.co.orange.nc.us www.ci.chapel-hill.nc.us www.ci.carrboro.nc.us
23 May
Issues concerning Jordan Lake
The NC Department of Water Quality is proposing significant changes in the monitoring of water quality near Chapel Hill. This could have a real impact on residents of Guilford, Alamance , Orange and Chatham counties. For more information check out
www.trebic.org and www.ptcog.org
There’s also talk of a proposed Corridor Overlay District Ordinance that if adopted would allow county government to take control over 23,000 acres of private land by Jordan lake without financial compensation to the owners. For more information you’ll want to check out the following sites: www.johnlocke.org and of course the Chatham county website: www.co.chatham.nc.us
23 May
Blood Sucking Ticks
Summer is around the corner, and here in North Carolina that often means an abundance of ticks and the problems they can bring like Lyme Disease and Rocky Mountain Fever.
While I am unaware of any method of completely avoiding ticks I do have some suggestions for minimizing the likelihood of your having a problem.
Pets need to be protected, and you have a number of options including products like Frontline, Bio-spot etc. If you typically put your pet out during the day in a fenced in yard you might also want tot consider treating the entire area. I tend to prefer natural or organic methods for broad application and have had good luck with diatomaceous earth. (sometimes sold under the name of PermaGuart) This is a safe and relatively inexpensive method. This product while safe for humans and pets is a very fine crystalline earth that basically cuts the offending pests with its sharp edges. It’s effective for a number of pests, though it needs to be reapplied after heavy rains. I have friends who have also suggested using a product Biorganic which is a clove oil based product.
If you’re willing to use stronger poisons, you’ll want to consider the following products: Sevin Dust, or Spectracide. Both are widely available at local retail gardening outlets.
Ticks like shady areas where animals would typically lie down to rest. Keep these areas around your home trimmed down and cleared of ground cover if possible.
If you’re going out on a hike or working in your garden you’ll want to protect yourself. Apply repellant to your clothing, socks, trousers etc. If you’re wearing shorts, be certain to apply some to your ankles and calves. When you get back be certain to check yourself and others carefully. If you do find yourself with a tick bite, note the day and watch the area carefully over the next 10-14 days. If you see any inflammation, red lines radiating from the bite or possible signs of an infection, go see your doctor. In most cases it’s probably not a serious disease, but when it comes to ticks, it’s better to be safe than sorry.
18 May
Homebuyers may not use Tax Credit for downpayment.
Below a message I received from one of my preferred Lenders just moments ago:
Remember that promise that Shaun Donovan, HUD Secretary made at the Realtor mid-year meeting on Monday? The one about that the $8000 tax credit being made available for down payments? Well, the promise is broken.
I got this notice from NAEBA headquarters this afternoon:
According to contacts with both FHA and HUD, Mortgagee Letter 2009-15, which stated that first-time homebuyers would be allowed to use the tax credit for their downpayment, has been rescinded. On a phone call with FHA, Kim Kahl was told, “The mortgagee letter has been rescinded for the time being.” NAEBA President John Sullivan was told something similar when contacting HUD. Neither FHA nor HUD gave further details.
9 May
Chatham Property Tax Rate Likey to Drop in 2009
CHATHAM PROPERTY TAX RATE MAY GO DOWN
Charlie Horne, Chatham county manager is proposing a reduction of the property tax rate from its current .653 cents per $100 assessed property values to .6032 cents per $100 of assessed property value as the overall value of the county wide Grand List went up approximately 24% after this year property tax re-evaluation.
“It’s important for taxpayers to know that revenue neutral does not mean that their next tax bill will be the same as their last one,” Assistant County Manager Renee Paschal said in a release. “All property owners will be affected differently.”
There will be a public meeting on the proposed budget on May 18th in the Superior Court Room in Pittsboro at 6PM. There will be a second meeting in Siler City at 6PM on May 21st.
The proposed budget funds the school capital improvement plan so projects stay on schedule.
New items include two positions previously funded by grants: a domestic violence investigator and criminal enforcement/canine team field supervisor. It also includes an update of the county’s land-use plan and new transportation planner.
9 May
OWASA WANTS ANOTHER RATE INCREASE
OWASA- SEEKS ANOTHER RATE INCREASE
Once again OWASA is looking to increase the rate they charge residents for their water and sewer. I don’t know about you, but I think it’s long overdue that Chapel Hill and Carrboro but their foot down and tell OWASA no!
OWASA reaps the benefit of being having a monopoly, and having dealt with them many times in the past I can report, their service is average at best, their attitude stinks, and the prices are absurdly high for the services they deliver. In today’s economic environment a rate increase coupled with their proposed employee cuts, hiring freeze and halting of projects that were slated to be done is just another example of why “public utilities” should not be allowed to be privately owned and operated.
Two years ago during a period of drought, OWASA implemented tough conservation restrictions, now as citizens continue to implement many of the water saving measures they began then, OWASA is crying that revenues are down. Their response: we want more money as you use less water. Wouldn’t it be nice if every business could operate the same way, in fact if we follow this chain of logic all the say through I guess we should simply pay them to do nothing.
There will be a public hearing on May 28th at 7PM in the Chapel Hill Town Hall 405 Martin Luther King Jr. Blvd in Chapel Hill. I encourage concerned citizens to attend and let them know how you feel.
3 May
New Website!
I’ve been busy the past few weeks creating a new web site www.chapelhill-durhamrealestate.com that is specifically geared to Buyers and I invite you to check it out for yourselves.
The site is designed to allow you to create your own searches and modify them as often as you like and you will immediately be shown every property currently available in the Multiple Listing Service matching your needs. You can choose to get daily, weekly or monthly updates. On this site I am granting free; virtually unlimited access to the same database that I pay for as a Realtor and you can access it form the convenience of your own computer anytime you like. This is the cutting edge of real estate technology!
This new site is not cluttered with all the local information I have on this site. I intentionally kept it clean, streamlined and designed to get you the information you most want quickly and efficiently. For more information on local schools, the job market, shopping, the local arts scene etc. this is the site. But if you’re looking to buy and want fast information on what’s for sale in our market now, I encourage you to check out the new site.
Happy Home Hunting!
