Empty homes on decaying properties that go unfixed become headaches for neighbors in more ways than one. Falling fences, tall grass and peeling paint drive down the desirability of neighborhoods and drive up the likelihood for squatters and crime.

While many vacant properties will be sold to those who want to fix them, some sit in disrepair and should be demolished. But cities are quickly running out of money to knock the houses down.

A bill, introduced by a bipartisan coalition led by Rep. Steven LaTourett, R-Ohio, seeks to fix that problem by funding demolition programs through the use of government-issued bonds.

The money brought in by the program would augment the funds many states have set aside to deal with properties that have gone beyond repair. LaTourett’s home state, for instance, could supplement the demolition initiative announced by Ohio Attorney General Mike DeWine, which set aside $75 million of the state’s $335 million share of the mortgage servicer settlement to demolish vacant homes.

If passed, the bill would spark a change in the stagnant nature of the vacant homes. While cities have been initiating small fixes — like requiring owners to register vacant properties — the rules are often unenforceable or the problem grew so large it became unmanageable. This bill would finally give cities the power to deal with an ever-worsening situation.

Not much has been released about the specifics of the bill, but one thing is for certain: It represents a new territory of bipartisanship.

After months of negotiations between the attorneys general and five big banks, this bill seems to continue the trend of bipartisanship when it comes to housing fixes. It seems that the housing market has gotten so bad, that Democrats and Republicans are getting beginning to cross the aisle more.

While President Obama’s housing fixes will probably not go through, and while no GOP presidential candidate seems to have found his place when it comes to housing, smaller, locally grown solutions are finding some success. Local and state reps are close to home enough to see the problem, and create a fix that pleases both sides.

Read More: The next big idea: Government bonds to tear down houses

Strong demand and a low inventory of houses for sale have increased competition for houses during the typically quiet winter season, Realtors said.

“Everything that I’ve listed since the beginning of the year, about seven listings, they’ve all sold within probably about a week, and the majority of them had multiple offers,” said Carol Courtney, an agent for Coldwell Banker in Novato. “In one case they had seven offers.”

The number of properties for sale in Marin in January remained near its lowest level in several years at 553, virtually unchanged from 547 a month earlier and down 41 percent from 945 in January 2011, according to Bay Area Real Estate Information Services, a multiple listing service.

“I have buyers right now, I’m taking them out today and I really don’t have much to show them,” Courtney said Tuesday. “It’s a real shame that sellers aren’t putting their properties on the market.”

Inventory has dropped sharply since mid-2011; Realtors say many homeowners are attempting to wait for prices to rise before listing their properties.

The share of homes sold through foreclosure or by homeowners with mortgage trouble fell slightly, to 39 percent in January, down from 42 percent in the same month of 2011. Such distressed sales have hurt property values in many Marin neighborhoods since the start of the foreclosure crisis, and continue to nudge the price of neighboring houses downward despite the rise in the overall median price.

“The short sales and the foreclosures are what are really impacting the prices because they are selling a little under market value,” said Wayka Bartolacelli, an agent for Alain Pinel Realtors in Corte Madera.

Demand among investors and first-time homebuyers, which has been fueled by price declines in the past few years, remains strong, Courtney said.

“They are out there because they can buy a $200,000 condo that was $550,000 or $600,000 just a few years ago, or maybe $500,000,” she said.

While her recent listings have all sold quickly, Courtney said she has one home that has “languished” on the market for more than a year — a 7,000-square-foot “castle” in Novato with an asking price of nearly $2 million.

“It’s definitely the $500,000 and below that are moving quickly, $600,000 and below.”

The median Marin condominium price inched up 2.3 percent to $290,000 in January, up from $283,500 in the same month of 2011. The county recorded 48 condo sales in January, unchanged from January 2011.

This article was featured in the Marin IJ on February 21st.

• Housing inventory is down 61.50%
• The average active price has increased 18%
• The average sold price has decreased 13.8%
• Months of inventory has increased 92.3%
• ALL TIME LOW MORTGAGE RATES (30-year fixed 4.00%)

Federal Housing Finance Agency Acting Director Edward DeMarco sent a plan to Congress on how to fix the nation’s mortgage finance market. His solution is to build a completely new infrastructure for the secondary market while contracting activities at the government-sponsored enterprises, Fannie Mae and Freddie Mac.

“No private sector infrastructure exists today that is capable of securitizing the $100 billion per month in new mortgages being originated,” said DeMarco in a letter to Congress. “Simply shutting down the enterprises would drive up interest rates and limit mortgage availability.”

Mortgage bonds, both private and nonagency, trade regularly on the secondary market. DeMarco’s letter indicates that the lack of new private-label, residential mortgage-backed securities is what is missing in a robust housing recovery.

“The absence of any meaningful secondary mortgage market mechanisms beyond the enterprises and Ginnie Mae is a dilemma for policymakers expecting to replace the (GSEs),” the letter states. “Without an alternative market infrastructure that investors could rely on, new mortgages would have been largely unavailable if the Enterprises suddenly had been shut down.”

This new market should be entirely transparent, the FHFA states. Mortgage servicers and bond investors should be able to access information on borrowers and be able to directly track collateral performance. Current pooling and servicing agreements are woefully inadequate and need to evolve, the agency also states, without offering more specifics.

Furthermore, mortgage servicers require more attention, in such a way that competiton is fostered, not hindered. For example, the new secondary market should “take full account of mortgage servicers’ costs and requirements, and consider the appropriate interaction between origination and servicing revenue.”

Home preservation initiatives also factor high in the DeMarco plan, as is compensation for the chief executives of the GSEs. The letter states that the GSEs are unlikely to fully repay taxpayers for $180 billion in bailout funds.

Therefore, it is time to move on to the “next chapter,” according to DeMarco.

The plan, which is more of a broad guideline by its own admission, urges policymakers to get serious about reforming the current secondary markets aways from the GSEs and into this new vision for a stable private market.

“Without further statutory direction, FHFA views the mandate to restore the enterprises to a sound and solvent condition as best accomplished not only through aggressive loss mitigation efforts, but also by reducing the risk exposure of the companies, through appropriate underwriting and pricing of mortgages,” the letter states. “Such actions are consistent with what would be expected of a private company operating without.”

Read More: FHFA submits plan to build new secondary mortgage market

• Housing inventory is down 70.4%
• The number of sold homes has increased 50%
• The average DOM has decreased 41%
• The average active price has increased 18.3%
• Months of inventory has decreased 80%
• ALL TIME LOW MORTGAGE RATES (30-year fixed 4.00%)

]]> http://jimmymarin.com/news/fairfax-real-estate-market-trends/feed/ 0 http://jimmymarin.com/news/chase-donates-100-homes-to-military-wounded-warriors/ http://jimmymarin.com/news/chase-donates-100-homes-to-military-wounded-warriors/#comments Mon, 20 Feb 2012 23:04:37 +0000 JimmyMarin http://jimmymarin.com/?p=2887 Mortgage lender Chase and nonprofit Operation Homefront will partner to place 100 wounded warriors, military members and veterans into Chase-owned homes.

Operation Homefront is a nonprofit that provides aid to active military, wounded warriors and veterans.

The new program — Homes on the Homefront — will provide transitional services for veterans and families chosen to receive the residences.

Chase, the lending unit of JPMorgan Chase ($38.47 0.47%), is offering real estate from its banked-owned inventory to applicants who are either active duty service members, in the National Guard or in the reserves or honorably discharged veterans. Other qualifiers include the soldier’s status as someone who does not currently own a home. They also have to be financially capable of sustaining the residence past the initial transition period.

The homes are donated, providing the recipients a clean slate to start from. After the transition period, the owners will assume all other homeownership-related costs.

The program also considers surviving single spouses of soldiers killed-in-action and post-9/11 disabled veterans as potential recipients.

“This is an incredible gift from Chase to our men and women in uniform,” said Jim Knotts, president and CEO of Operation Homefront. “Chase’s imaginative, nationwide approach to providing quality homes to deserving service members and their families will make a huge difference in how these heroes can make that difficult transition and adjustment into productive civilian lives.”

• Housing inventory is down 42.3%
• The number of pending homes has increased 300%
• The average active price has increased 36.8%
• Months of inventory has decreased 42.3%
• ALL TIME LOW MORTGAGE RATES (30-year fixed 3.80%)

The motivation for selling is a key factor. Are you commuting to work several hours a day and the commute is killing you? Are your children grown and your home is now too big, in addition to being a burden to maintain? Is your home too small? Have you taken a job out of the area? Can you no longer afford to own your home? Or do you no longer want to pay the price it costs to own your home?

These are all good reasons for considering making a move. Not only do current market conditions enter into the equation, but making a move like this is usually more complicated than it was the first time you bought a home.

HOUSE HUNTING TIP: First, you need to find out the probable sale price of your home and access the state of the current home-sale market in your area. You also need to know what you can do to maximize the salability of your home. Then you should consider where you’ll live next and how much that will cost.

If you don’t already have one, find an experienced real estate agent who specializes in your area. Friends whose opinion you trust are the best source of agent referrals. Meet with your agent at your home and ask for a comparative market analysis. This will give you information about what homes like yours have been selling for in the current market.

You’ll also want to know how long you can expect it to take to sell your home. How many homes like yours have sold recently? Are homes like yours in high demand? Or, is it located in a less desirable area that could mean a longer marketing time and, perhaps, a lower price than you were expecting?

Ask your agent to walk through your home with you and point out what should be done to make your home marketable. Homes that sell today are priced right for the market and are in move-in condition.

You want to make cost-effective improvements. If the kitchen and bathrooms are outdated, consider a cosmetic redo. Update paint, hardware, light fixtures and floor coverings, if necessary. Don’t do a complete remodel unless you plan to stay in your home for years; otherwise, you won’t recoup your investment.

Deciding where to move — and when – can be difficult. Some buyers can afford to buy a new home before selling, and prefer to make the move that way. Most repeat buyers can’t afford to buy first. Others who can won’t buy first due to market uncertainty and the stress of owning two homes at once.

The most prudent approach to making a move from one home to another is to sell first and rent if necessary until you find the right home to buy. By selling first, you will know exactly how much money you have to apply to a new home. Today’s housing market is volatile. A dip in the market could shave tens of thousands of dollars, or more, off your selling price.

The other benefit of renting before buying is that you’re under no pressure to buy the first listing you see. Interest rates are low and are expected to stay low through 2012. Prices are also low and aren’t expected to move up much for the next several years.

THE CLOSING: This gives you time to find the home that will suit you for the long term.

• Housing inventory is down 47.5%
• The number of pending homes has increased 200%
• The average days on market has decreased 14.3%
• The average sold price has increased 177.8%
• The average active price has increased 74.2%
• ALL TIME LOW MORTGAGE RATES (30-year fixed 3.80%)

Location: Washington, D.C.
Price: $6.9 million
The Skinny: This Hacienda-style house might look like something out of the Spanish countryside, but it actually sits next to the vice president’s mansion on the grounds of the Naval Observatory in Washington, D.C. The $6.9 million mansion hit the market back in April — when our colleagues at Curbed DC took a look — with just a few pictures of the innards, but it has since opened up about its wonky interiors. Now the listing photos include shots of a stub of tile roof tucked into the catering kitchen, an uninspired media room, and some strange banquettes in the living room. Strange indeed, but, to be fair, this is the first time the stucco spread has been on the market in 50 years.
Sources: Christie’s, Curbed DC.

View the original item at Curbed.com: “Live Next Door to Joe Biden for the Low, Low Price of $7M,” by Rob Bear.