Upward Movement in New Home Sales

Sales of newly built, single-family homes rose 3.3% in April to a seasonally adjusted annual rate of 343,000 units, according to newly released data from HUD and the US Census Bureau. “The increase in April sales activity is in line with other important housing measures that have shown continued, gradual improvement from the first quarter as more consumers look to take advantage of today’s low interest rates and affordable home prices,” noted National Association of Home Builders (NAHB) Chairman Barry Rutenberg, a home builder from Gainesville, Fla. “In markets where demand is rising, we could be seeing a faster pace of recovery if not for persistently tight lending conditions that are slowing both the building and buying of new homes.”

“Today’s report is representative of the kind of modest but consistent gains that we expect to see in new-home sales through the remainder of 2012,” said NAHB Chief Economist David Crowe. “As indicated by our most recent builder surveys, more consumers are taking advantage of historically low mortgage rates amidst firming economic and job market conditions in certain areas.”

On a regional basis, new-home sales rose 7.7% in the Northeast, 28.2% in the Midwest and 27.5% in the West in April. The South was the only region to post a decline for the month, of 10.6%.

Christie's DEP Waiver Fails in Assembly Committee

A measure sponsored by Assembly Democrats aimed at halting the state Department of Environmental Protection from circumventing existing environmental regulations was approved by an Assembly panel on Monday by a 5 - 2 vote. "The DEP does not have the statutory authority to promulgate one set of rules and regulations in order to waive other rules and regulations previously adopted as a result of legislation," said Barnes (D-Middlesex). "Not only does this go against the very purpose of creating legislation, but it also has the potential to harm the environment and the residents of this state."

A coalition of 28 environmental and labor groups sued the Department of Environmental Protection on the grounds that the agency does not have the authority to simply waive requirements of at least 85 statutes put in place by the legislature as part of 40 years of environmental protection legislation. The asked the Democratic legislature to exercise the authority given to them by an obscure constitutional amendment that allows them to strike down an agency rule if the legislature determines that the rule is not in keeping with the legislative intent behind the law.

 "This is an attempt by the department to completely circumvent a great deal of the environmental protections we have put in place to protect the people of this state," said McKeon (D-Essex/Morris). "This is a classic example of this administration acting without regard for the laws of this state, a pattern we've seen repeatedly over the last two years."

Why Short Sales are Becoming the Best Option for Underwater Homeowners

Can you short sale your home even if you are not late on your mortgage and may be able to make the payments. In the industry that is called a ‘strategic short sale.‘
A short sale happens just like any other home sale. A Realtor lists the home, an offer is received, you (the seller) decide if you want to accept, reject, or counter the offer. Once terms are finalized the home is pending/ in contract just like a normal sale. You and the buyer sign the contract.
You don't need prior approval from your lender to do a Short Sale.
You DO NOT need to be late on you mortgage to do a short sale. In fact, there is an advantage now in remaining current on your payments.

Mortgage Rates Bottoming Out -- Or Going Even Lower?

Long-term mortgage rates fell still lower last week, with the average rate on a 30-year fixed-rate mortgage falling to a new all-time low of 3.83 percent. More details fron The National Mortgage News....

Dramatic Montville Price Drop Illustrates the Reality of Luxury Home Pricing in NJ

Melissa and Joe Gorga first put their home on the market in 2010 for $4.5 million shortly before becoming part of Real Housewives of New Jersey. They took it off the market when the hit reality show began -- perhaps thinking that the growing popularity of the show would add to the home's value.

This week they relisted their 13,500 ft. mansion for $3.8 Million -- a hefty %700,000 price drop. Tax rcords indicate that Joe Gorga, a developer who builds custom homes to order, bought the property in 2008 before building their French Chateau style mansion.

Perhaps the Gorgas  lowered their asking price to compete with this comparably sized mansion now under constructioin in their neighborhood listed at $3.89 Million.

FHA vs Conventional Mortgages -- Which is Better for You?

Whether an FHA mortgage is better than a conventional one depends on a number of factors including current interest rates, current mortgage insurance rates, and your expected downpayment/equity percentage.

The 30-year fixed rate mortgage comes in multiple flavors. 

There is the 30-year fixed rate mortgage from the VA; the 30-year fixed rate mortgage from the USDA; and jumbo lenders offer 30-year fixed rate mortgages, too. Each is slightly different in terms of qualification standards and payment schedules 

The two most popular 30-year fixed rate mortgages are the conventional 30-year fixed rate mortgage as offered by Fannie Mae and Freddie Mac and the FHA 30-year fixed rate mortgage 

 Mortgage expert Dan Green goes into detail on this subject in his Mortgage Reports blog...

Looking for an Asian Paradise? Phuket!

Phuket Island, in Thailand, is now increasingly recognized as one of the prime locations to buy real estate in South East Asia. The surrounding islands of the Andaman Sea offer a sailing and boating environment second to none in the world. The nearby Similan Islands is recognized as one of the top scuba diving destinations in the world. Fishing, windsurfing, biking and five first-class golf courses make Phuket a sportsman’s paradise. Rapidly improving infrastructure is giving Phuket all the facilities of any modern community, with big shopping complexes, international colleges, such as British Curriculum International School and QSI International School of Phuket, well-equipped hospitals, and marinas.

All of the above information is factual. But the basis for the viral photo at right titled: "Botanical Apartment Therapy in Phuket, Thailand," is still a mystery. In the 3 months since it was originally posted there has been no credit or supporting info given.  This has led to speculation that it may be a Photoshop creation -- perhaps as part of a marketing campaign.

Hopefully, it is at least a work in progress for a dream development in the making -- somewhere.

Highest Q1 Pendings in 5 Years Spurs Recovery Predictions

Pending home sales increased in March and are well above a year ago, another signal the housing market is recovering, according to the National Association of Realtors(R).

The Pending Home Sales Index,* a forward-looking indicator based on contract signings, rose 4.1 percent to 101.4 in March from an upwardly revised 97.4 in February and is 12.8 percent above March 2011 when it was 89.9. The data reflects contracts but not closings.

The index is now at the highest level since April 2010 when it reached 111.3.

Lawrence Yun, NAR chief economist, said 2012 is expected to be a year of recovery for housing. “First quarter sales closings were the highest first quarter sales in five years. The latest contract signing activity suggests the second quarter will be equally good,” he said.

“The housing market has clearly turned the corner. Rising sales are bringing down inventory and creating much more balanced conditions around the county, which means home prices will be rising in more areas as the year progresses,” Yun said.

NJ Foreclosure Streams Starting to Flow Again

According to the Mortgage Bankers Association, a record 16.7 percent of home mortgages in the state of New Jersey are late on their monthly payments, or in foreclosure. That is above the 12.5 nationwide percentage.

In addition, after the foreclosure slow down last year in the wake of reports of mortgage service abuse and investigations, the process is coming back online for both residential and commercial properties. In fact, foreclosure activity numbers in New Jersey last month rose nearly 72 percent compared to March of 2011. Foreclosure filings and sheriff auctions are up drastically compared to this time last year, but significantly below the numbers we saw in 2010. New Jersey was part of a $25 billion settlement between five large mortgage lenders and state and federal officials that were accused of "robo-signing" foreclosure paperwork and cutting corners to get people evicted quicker.

Mortgages Now Available through Costco

Costco shoppers are used to shopping big. They can now can now shop for the biggest item they'll probably ever buy - a mortgage.

Costco has signed up 11 lenders to provide a mortgage lending service to its shoppers. Whether it's a new loan, or a refi. The warehouse club is rolling out a full service mortgage lending program on its web site. Members can log in, fill in their information anonymously and then get a price comparison from several lenders, although most borrowers still need some level of personal contact from both a real estate professional and their lender. The company already offers financial products like auto insurance and health insurance and stock brokerage services, and will soon offer auto and student loans.

Missouri EcoVillage Goes On and Off the Grid

Alex Whitcroft, an architectural designer from the UK, first came to Dancing Rabbit EcoVillage in rural Missouri to learn natural building techniques. He returned two years later in 2011 as one of its 60 or so residents. Like most buildings at Dancing Rabbit, the home Whitcroft shares with his partner, Jennifer Martin, and two of her children is made with natural materials: sustainably harvested or reclaimed wood, natural plasters, and straw bales harvested from surrounding fields for insulation.

While half of their community reconnected to the grid in 2011, Dancing Rabbit is net positive — producing more energy than it consumes.

NNJ Foreclosures on the Rise

Bergen and Passaic counties have both seen an increase in properties sold at sheriff's auction in the first three months of this year.  And RealtyTrac, a California company that follows the foreclosure market, recently reported that foreclosure activity in New Jersey rose almost 72 percent from March 2011 to March 2012.

Because of last year's slowdown in foreclosure activity, troubled mortgages are piling up in New Jersey. The Mortgage Bankers Association recently reported that a record 16.7 percent of mortgages in the state are either late on monthly payments or in foreclosure, compared with 12.5 percent nationwide.

The uneven pace of foreclosure activity suggests that New Jersey will not quickly clear the market of distressed properties, which tend to sell at a discount.  More from NorthJersey.com

Pyramid Scheme

Rising above the Arizona desert like a phoenix, this property causes double takes from all who drive by.  Situated on 13 acres, it has over over 3,000 square feet of living space and two master bedrooms.  However, unlike the Egyptian pyramids, this architectural wonder is for sale.

At an asking price of $495,000 an estimated mortgage payment on the Maricopa Arizona pyramid would be $1,865 a month, with 20 percent down on a conventional 30-year mortgage.

Freddie Mac Forecasts Spring Housing Recovery

“A variety of encouraging indicators suggest that the housing market may be feeling a nascent recovery ... and more neighborhoods may see a stabilization in overall demand and housing values this spring,” says Frank Nothaft, Freddie Mac’s chief economist.

In fact, the signs have prompted Freddie Mac to revise its forecast upwards for home sales and originations. One economic contributor that’s helping to stabilize housing: The drop in the unemployment rate to 8.3 percent, its lowest level in three years, according to the report.

HARP Springs Eternal -- New ReFi Options for NJ Homeowners

HARP is a federal government program designed to help millions of underwater or upside down homeowners refinance into a fixed loan with a lower monthly payment. It was rolled out in March 2009. However, on Oct. 24, 2011, President Obama announced an overhaul to the HARP Refinance Mortgage Program with the intent of reaching more underwater homeowners. The expanded HARP Refinance program – also called HARP 2.0 – is rolling out this month for borrowers with a loan-to-value ratio of greater than 125 percent.

What’s new with the New Jersey HARP 2.0 Refinance program? 

• No underwater limits! Borrowers will now be able to refinance regardless of how upside down or underwater they are in their mortgages.
•  There may be no appraisal requirements! Some homeowners may get appraisal waivers making their New Jersey HARP Refinance process smoother and faster. 
• Certain risk-based fees eliminated! For borrowers who do the HARP Refinance and switch into shorter-term loans these fees will either be eliminated or modified. Extended deadline! 
• The end date to get a HARP Refinance has been extended to Dec. 31, 2013.

How To Burn Down Your House (and why)

Richard Taylor is a residential architect whose writings often go beyond his passion for great home design:

  It was late in the day when it finally happened. A puff of smoke appeared just over the rooftop at the far right side of the house; then another appeared, near the chimney. Within moments smoke was pouring from the entire roof and flickers of orange flame began appearing in the windows.

A cheer went up from the assembled crowd as the flames grew; soon the roof weakened and began to collapse. 
A dozen firefighters stood by, cheering along with the crowd. 
 Huh? 
 Usually, a home burning to the ground is a tragedy, a disaster, a crime – or all three. This, however, was a welcomed event that would benefit the homeowners, the fire department, and dozens of families we’d never meet....

Read to rest of the article here. Taylor is based in Dublin, Ohio and is a contributor to Zillow Blogs. Connect with him at http://www.rtastudio.com/index.htm.

Live From the Eagle's Nest

People from around the world have been watching the progress of bald eagle eggs hatching in Iowa. The eagle's nest is located in Decorah, Iowa, but a webcam provided by UStream has allowed people to watch as the much anticipated babies make their arrival.

In 2011,thousands tuned in to the Eagle Cam to see the Decorah, Iowa eaglets hatch. The eagles returned at the end of December to nest again. Since then, the Decorah Eagle Cam has had more than 11 million views.
So far two of the three eggs have hatched.

The eagle parents have been together since the winter of 2007-2008. They have since successfully hatched 11 eaglets. You can view the live webcam by visiting: http://www.ustream.tv/decoraheagles

 PHOTO FROM UNITED STATES FISH AND WILDLIFE SERVICE VIA WIKIMEDIA COMMONS

March Update on Subprime Foreclosure Rates

The Newark area referred to in this report covers the geographic area of the Newark-Union metro area as officially defined by the Office of Management and Budget of the U.S. Government.  The official coverage area includes the following counties:
 Essex County, Hunterdon County, Morris County, Sussex County, and Union County,
(Click on chart to enlarge)

B of A's Bold Experiment to Avoid Foreclosing

Bank of America announced that they were launching a pilot program to turn defaulted owners homes into rentals…and defaulting owners into tenants. Here are the details.

* Borrowers would agree to a what is known as a “deed-in-lieu” of foreclosure, where they essentially sign over ownership of the property to the lender.

* Former owners would be offered one-year leases with options to renew the leases in each of the following two years at rents that the bank determines are at or below the current market price. * The bank began sending letters Thursday offering leases to 1,000 homeowners in Arizona, Nevada and New York.

* Borrowers would have to demonstrate an ability to pay the market rent. In other words, the former owners would have to apply to lease their homes back from B of

Will it work? If an owner has defaulted due to real honest to God hardship are they even going to qualify to lease their own homes back? Or the other common situation where an owner strategically defaults. Will a strategic defaulter want to complete a credit application with the very same bank they just defaulted on?

* Rents would be based on a BofA formula. For example, a soon to be former owner with a $250,000 mortgage and monthly payments of $1,600 could swap the house for a lease, renting the home for $900. * Borrowers selected for the program must be at least two months past due on their mortgage and face considerable risk of foreclosure.

* Bank of America is reaching out to borrowers who have exhausted other alternatives to foreclosure or who haven’t responded to earlier solicitations.

* Homeowners with second mortgages or other liens won’t be selected. Stay tuned....

Buying Still Beats Renting in Most Markets

Trulia recently released its Winter 2012 Rent vs. Buy Index, which tracks whether it is more affordable to rent or buy a home in America’s 100 largest metropolitan areas. Based on asking prices for rental units and for-sale homes on Trulia.com between December 1, 2011 and February 29, 2012, the index reveals the relative cost of renting versus buying for similar homes in similar neighborhoods.

Buying Trumps Renting in 98 Out of 100 Major Metros after years of home price declines and tightening rental markets, homeownership is now more affordable than renting in all but two of the 100 largest markets – even in expensive real estate markets such as New York, Los Angeles and Boston. Only in Honolulu and San Francisco is renting often a better deal than buying. However, buying a home in these markets might make sense for people who plan to stay in their next home for at least five years and can benefit from the mortgage-interest tax deduction. (Above Photo: Construction recently resumed on the last phase of the massive Four Seasons at Great Notch senior living complex on Garret Mountain on the Clifton - Woodland Park border.)