May 5

West Bloomfield: Cluck, cluck HERE?

Posted in Uncategorized

Rules on chickens in township may be forthcoming

An article by Leslie Shepard

The West Bloomfield Township Board of Trustees voted Monday, May 2 to have the Planning Commission draft language for a proposed ordinance that could allow residents to house chickens in residentially-zoned areas.

The current township ordinance in regards to the housing and keeping of animals restricts the housing or keeping of animals to farms, with the exception of domestic pets such as dogs and cats, along with housing animals in private stables.

Under a proposed amendment, the housing or keeping of chickens would be permitted under certain conditions.

The amendment would allow for a maximum of four hens over the age of one month to be kept per parcel, but roosters would be prohibited.

Under the amendment, the principal use of the person’s property must be for a single-family dwelling and parcels located in subdivisions or condominium developments would require written approval by the participating subdivision or condominium association.

The amendment would also require hens to be put in a covered or fenced enclosure in a rear yard at all times, and that the enclosures must be located at least 40 feet from any residential dwelling on an adjacent parcel unless written permission is granted by the owners of affected residences.

The enclosures would also have to be constructed, repaired and maintained, and feed for the hens would also have to be protected in order to prevent rats, mice, or other rodents from being harbored in the walls of an enclosure and from coming in contact with the hens.

The amendment would also prohibit the slaughtering of chickens at a residence.

Township Trustee Steve Kaplan said the Planning Commission will have the opportunity to recommend the ordinance to the board for final approval, but that a final decision is about 12 weeks away.

He added that some residents are interested in housing chickens for the purpose of producing eggs.

This would not be the first instance of chickens being housed in a residential area in the lakes area.

Milford Village resident Archie Noon recently moved ahead with plans to build and utilize a chicken coop in his backyard, despite the village’s animal control ordinance stating that no person or persons may house or keep farm animals, wild or exotic animals, dangerous animals or dangerous dogs anywhere within the village.

View the entire article here: http://spinalcolumnonline.com/rules-on-chickens-in-township-may-be-forthcoming/

May 5

Buyers of Bank Owned Properties Be Aware of MERS

Posted in Uncategorized

Closings canceled on some bank-owned homes after court rules against MERS

BY GRETA GUEST
DETROIT FREE PRESS BUSINESS WRITER

Heather Boser of Warren looks on Wednesday from her parents' house after her home was foreclosed three years ago in Warren. Boser is part of a wrongful-foreclosure suit involving her lender. "I would like some kind of compensation for everything I have gone through," Boser said. / Photos by ANDRE J. JACKSON/Detroit Free Press

Local Realtors say title companies are canceling closings on some bank-owned homes after a recent Michigan Court of Appeals decision made it more risky to insure them.

Late last month, the court ruled the Mortgage Electronic Registration System lacks authority to foreclose by advertisement in Michigan. The system is an electronic record-keeper of mortgages.

Foreclosures on two homeowners in Grandville and Jackson are on hold because of the ruling. The ruling could also impact thousands of foreclosures that have already been sold to other buyers, industry experts say.

Raymond DeBates, president of Colonial Title in St. Clair Shores, said that he has not had to cancel any closings yet, but he has put some files aside and is waiting for underwriters to indicate whether the deals can close or not.

“This invalidates every foreclosure where MERS was involved,” DeBates said. “They could set aside all these MERS transactions. It would be a catastrophe. And that’s what we have.”

Some homeowners fighting back after foreclosures

Some homeowners who were foreclosed on by the Mortgage Electronic Registration System are fighting back.

Heather Boser, 36, lost her 1,700-square-foot home in Warren in 2007 and is now living at her parents’ house with her four kids.

She had a $203,000 adjustable-rate mortgage. The payments started at $1,200 a month and then moved up to $3,000 a month.

The sheriff’s sale of her home was initiated by MERS, which the Michigan Court of Appeals ruled on April 21 lacks legal authority to do so in Michigan.

The ruling has spawned a couple of budding class-action lawsuits in metro Detroit — and threatens to undo certain foreclosures done by MERS in the past — including one filed Tuesday by Bingham Farms attorney Ken Gross. He’s representing Boser.

‘Now they are in limbo’

“We are still tabulating the numbers but it appears to us … from 2008 to 2010, there were thousands in Michigan with MERS as the foreclosing entity,” Gross said.

In Oakland County, he counted 1,400 foreclosures in 2009 involving MERS and 555 in 2010.

Gross’s client Boser, who owns a tree service company in Warren, said she doesn’t want the house back, which was sold in late 2008 for $110,000.

“I have joined the lawsuit I guess just for restitution for the fact that the paperwork was done incorrectly,” Boser said. “I would like some kind of compensation for everything I have gone through.”

Foreclosures on two homeowners in Grandville and Jackson are on hold because of the ruling.

The homeowners defaulted on their mortgages, but they have challenged their evictions saying MERS, a clearinghouse for mortgage loans, lacked the authority to foreclose by advertisement under state law.

The ruling could also impact thousands of foreclosures that have already been sold to other buyers, industry experts say.

Joan Downing, broker/owner of Re/Max in the Hills in Bloomfield Hills, said the ruling’s impact started becoming apparent late last week with panicky calls from agents saying deals were unraveling at the closing table as title companies withdrew insurance on the titles.

“Some of these people have sold their other homes and now they are in limbo,” Downing said. “What impact is it going to have on people who have already closed and have put money into the homes? Title companies are also saying they aren’t sure they want to get involved in refinances of homes that were foreclosed by MERS.”

And Marshall Mandell, a foreclosure specialist with Re/Max Classic in Farmington Hills, said many buyers will be affected including moving delays, lost fees paid for appraisals, inspections and financing as well.

‘Closings canceled’

“We are having closings canceled to a meaningful extent, which is scary because we’re losing essential closings and we can’t yet tell how deeply or how long this will affect us,” Mandell said. “So far it seems to be about 20% of my personal inventory, but it’s too early to know for sure.”

The state law only allows the lender or the servicer to foreclose.

MERS was formed in 1993 as an electronic record-keeper that tracks the ownership of mortgages and made it easier to sell mortgages in blocks.

The idea was to avoid the costs and time associated with recording each mortgage transfer individually as required by many state laws, including in Michigan.

Dan Elsea, president of brokerage services for Real Estate One, said he doesn’t think the ruling would affect closed sales, but time will tell. MERS was “used by pretty much everyone — Freddie (Mac), Fannie (Mae), Wells Fargo. We’ve been told that they were involved in 70% of mortgages.”

Bernard J. Youngblood, the Wayne County register of deeds, said MERS has initiated 50 foreclosures on Wayne County homes within the last six months and nearly 15,000 Wayne County properties under MERS have been foreclosed within the last five years. “I would advise people who have been in foreclosure proceedings with MERS to consult with an attorney who can review their file.”

There may be an opportunity to reverse or delay a foreclosure, he said.

Case may be appealed

Terry Cramer, a Troy attorney whose firm Orlans Associates represents Bank of New York Trust, said the lender had not made a decision about whether to appeal to the Michigan Supreme Court.

“The fact that there was a dissenting opinion indicates there is a little room there to interpret it a number of different ways,” Cramer said.

In the meantime, a MERS spokeswoman says its members have been foreclosing in their names instead of through the registration system since earlier this year.

Janis Smith, MERS spokeswoman, said the company was evaluating its options.

“This is overall a very positive decision for us. In its opinion, the court validated that MERS had an interest in the mortgage and it can exercise its interest,” Smith said. “Title companies should have no concerns about closing loans with MERS as the mortgagee.”

But the court ruled that MERS did not have an interest in the note, or the debt underlying the mortgage. It’s a fine point, but the note and mortgage are two different legal transactions with different rights, the court noted.

David Tripp, the Hastings lawyer who represented Grandville homeowner Gerald Saurman, said the ruling “has somewhat limited effect” since it applies only to foreclosures involving MERS.

But he’s hopeful that Saurman, who is not current on his mortgage, will benefit.

“We’re going to see what we can do to save his home for him,” Tripp said.

View the entire article here: http://www.freep.com/article/20110505/BUSINESS04/105050469/Closings-canceled-some-bank-owned-homes-after-court-rules-against-MERS

May 3

‘Al Bundy’ Purchases $3.05-Million Brentwood Home

Posted in Uncategorized

O’Neill buys $3.05-million ranch

BY LAUREN BEALE
LOS ANGELES TIMES

Actor Ed O'Neill has bought a Brentwood home for $3.05 million. / MICHAEL MCNAMARA/MCT

Ed O’Neill of “Modern Family” has bought a Brentwood home from cinematographer Robert Richardson for $3.05 million.

The ranch-style house was designed by Cliff May in 1953 as his personal residence. May, known as the father of the ranch house, designed it as an experiment in open plan living, with walls enclosing only the two bathrooms. Long drapes and rolling cabinets defined the other rooms.

The home was later restored and refined by L.A.-based Marmol Radziner. Walls of glass open to park-like grounds, and a 288-square-foot skylight brings natural light into the house. Both bedrooms have vaulted ceilings and walnut cabinetry.

O’Neill, 65, has played patriarch Jay Pritchett on the sitcom “Modern Family” since 2009. He also is known for his starring role on “Married With Children” (1987-97).

Richardson, 55, won Oscars for “JFK” (1991) and “The Aviator” (2004).

The property had been listed at $3.5 million.

View the entire article here:

http://www.freep.com/article/20110501/BUSINESS04/105010364/O-Neill-buys-3-05-million-ranch

May 3

‘Fixer-Upper’ vs. Move-in Ready

Posted in Uncategorized
Daily Real Estate News | May 3, 2011

Buyers Bypass ‘Fixer-Upper,’ Want Move-in Ready
More buyers are shunning “as-is” properties in favor of homes that are in move-in condition, according to real estate professionals and recent surveys.
For example, a Coldwell Banker survey recently found that 87 percent of first-time buyers say they desire a “move-in” ready home.
“This is absolutely the story of this market. It seems buyers will pay a premium, engage in a bidding war, and even overpay just to avoid buying a ‘project’ house,” says Beth Freed of Terrie O’Connor REALTORS® in Ridgewood, N.J.
As such, real estate pros are advising their sellers to fix up their homes for quicker sales. “There is no question homes that have been spruced up for the market sell quicker,” says Kate Conover with RE/MAX in Saddle River, N.J.
That doesn’t mean major, costly renovations that sellers won’t likely get back on the sale price either, she says. Instead of a major kitchen or bath renovation, just repainting the home or removing the clutter can go a long way in freshening up a home. Also, don’t forget about curb appeal: Freshen up the flowerpots, trim the bushes, and paint the front door, if it’s starting to show wear and tear.
Also with buyers wanting “move-in” ready homes, real estate pros say it’s crucial that sellers address any major maintenance and safety issues—such as leaky roofs—before the home even goes on the market.

Source: “Home Buyers Shun ‘Fixer-Uppers,” RISMedia (May 2, 2011)

May 2

Detroit: Population in certain areas of city is gaining!

Posted in Uncategorized

Keeping it positive.  This is great news for Detroit!


Some city neighborhoods gain despite Detroit population pain

Mike Wilkinson / / The Detroit News

Detroit - PopulationDetroit — The 2010 census numbers released last month confirmed an epic population loss for Detroit: Once the fifth largest in the country, the city is now No. 18, having lost 1 in 4 people in just 10 years.

But a Detroit News analysis of neighborhood-level areas shows the pain was not evenly spread. Some areas had steep declines into vast wastelands of burned-out homes and trash-strewn lots. But there are also pockets of vibrancy creating hope among city boosters and those bent on transforming Detroit.

The stark differences between neighborhoods could profoundly affect how the city reshapes itself as leaders draft a sweeping blueprint for the future. As they do, city leaders are identifying the assets to build around — strong ethnic communities, large employers, cultural and educational institutions, as well as pinpointing the areas of greatest decline and growth.

As they do so, they’ll meet people like Angie Gaabo, who has chosen to raise her infant son, Joey, with her husband, Eric, in the Woodbridge neighborhood in Midtown. There, they know their neighbors, can walk and bike to stores and cultural activities, and enjoy a life full of vitality — all in an area that has shown some of the most widespread growth in the city.

“We love the neighborhood,” she said, adding that nagging concerns about nearby blight and safety are overcome by the positives. “We have a great life.”

Many others came to a different conclusion in the last decade, with thousands moving out of the city to seek work, better schools and safer neighborhoods. They left behind a city whose leaders will have to make tough choices about future funding. For neighborhoods where most of the homes remain and are occupied, improvements in street lighting might make sense. In others bereft of homes, people and activity, they may not.

“All of these conversations about neighborhoods are going to be very sensitive,” said Marja Winters, deputy director of the city’s Planning and Development Department that is overseeing the Detroit Works Project. “They’re going to be tough.”

To get the best understanding of the changes, the city should take stock at the neighborhood level, called “block-groups” by the U.S. Census Bureau, said Kurt Metzger, director of Data Driven Detroit.

Census tracts typically comprise 3,000 to 4,000 people and can cross major roads, while block-groups are smaller and more closely match neighborhood boundaries.

For instance, where Gaabo lives in Woodbridge, the block-group population grew by 7 percent, reflecting a growing population that is borne out by an increase in the number of baby strollers rolling down Avery and Commonwealth streets.

If planners looked only at the area’s census tract, they would have seen a 12 percent decline fueled by blighted areas that are far removed from the core of Woodbridge, hiding the obvious gains in the neighborhood.

“Block-groups are much more sensitive for identifying the dynamic levels of change in a community, change that can be masked by looking at larger geographies,” Metzger said.

In search of ‘purpose’

Decades ago, as the city mushroomed during a wave of industrial expansion, neighborhoods sprang up near bustling factories and areas dedicated to industrial activity. With so many of those buildings now shuttered, many neighborhoods lost their “economic purpose,” said Lyke Thompson, director of Wayne State’s urban studies center.

For those parts of the city, rebirth may be difficult, if not impossible, without a stabilizing force like an auto plant.

But in others, changes have helped a neighborhood shift focus. Southwest Detroit went from an area that sent workers to the Rouge and other plants to the center of the Hispanic community. One asset was replaced by another.

In Midtown, the attractions are more obvious: Wayne State University, its medical school, the Detroit Institute of Arts and the Henry Ford Health System. Combined, they employ tens of thousands and attract thousands more. Nearby neighborhoods have also added residents, businesses and vitality.

“If you look at the areas of Detroit that have thrived or at least held their own,” Thompson said, “they have a clear and distinct purpose.”

The area is hoping to take advantage of those assets: By 2015, Wayne State, Henry Ford Health and the Detroit Medical Center hope to attract 15,000 young, educated people to the city. New renters and homeowners can receive cash assistance.

Just a few miles northeast, along a short stretch off Seven Mile, just east of Woodward, the “distinct purpose” was once very clear: It was the epicenter of the region’s Chaldean community, known for years as “Little Baghdad.”

There are Chaldean bakeries and groceries and a Chaldean Catholic Church.

Yet during the 2000s, the area lost nearly half of its population — and an even greater proportion of Chaldeans, many of whom north to Macomb and Oakland counties.

“It’s just desolated,” said Martin Manna, executive director of the American Chaldean Chamber of Commerce, which has considered plans to put future waves of Chaldean immigrants into the neighborhood.

But now he said he fears the new arrivals will bypass what was once the first stepping stone to their assimilation: the neighborhood along Seven Mile. “They’re skipping the city,” he said. “We’re seeing this completely.”

Manna and others are hopeful, though, that they can turn a challenge into an opportunity. They’ve talked with state and local officials about help with immigrant housing to create a “village” that could revive the area. But he knows that even immigrants from a war-torn Iraq are reluctant to move into Detroit. They have concerns that residents everywhere have, including job opportunities, safety and schools.

“We’d love to see it work in the city of Detroit,” Manna said. “But the challenges remain.”

Investing in the city

As others in his east side neighborhood fled and moved into Warren, Roseville and other points north, Terrance Campbell paid $8,500 for a tidy brick home on Young Street just west of Hayes. He installed new windows and a privacy fence and is admittedly cautious, fearful of strangers and the potential for break-ins. But he believes “crime is everywhere” and is pleased with his choice.

“This is me,” said Campbell, 43. “The city is me.”

Campbell said he was once one of the knuckleheads who used to do stupid stuff on Devil’s Night, when youngsters with matches created infernos that brought infamy to the city. But now Campbell said he’s made an investment in the city he once helped tear down. On a recent day, he hired a homeless man to clean up a pile of trash left on an abandoned lot across the street from his home.

“I’m just trying to make a change,” Campbell said.

Nearby, Bob Gregory makes a similar effort. A retiree from Faygo, Gregory lives just east of Gratiot on Troester. Across the street from his tidy wood-frame house are two burned out homes. An empty lot sits beside his house.

But Gregory, 57, with his wife, Theresa, 54, a Detroit Public Schools teacher, have no intention of leaving the neighborhood that has been their home for more than two decades. Bob Gregory takes time to clean up lots near his home. He picks up the trash, picks weeds and tries to improve his world, blighted as it may appear to be.

“We could run and move to a nice neighborhood,” he said. “But why run and go where you’re not needed? I’m needed here.”

mwilkinson@detnews.com

313-222-2563

From The Detroit News: http://detnews.com/article/20110502/CENSUS/105020335/Some-city-neighborhoods-gain-despite-Detroit-population-pain#ixzz1LCotFWz0

Apr 25

Detroit: Most Expensive Homes

Posted in Uncategorized

Got millions? Here are the most expensive metro Detroit homes

BY GRETA GUEST
DETROIT FREE PRESS BUSINESS WRITER
Detroit's Most Expensive Homes

A buyer paid $2.45 million for this Birmingham house, $250,000 less than the asking price. It was the sixth most-expensive house sold in metro Detroit last year. / PATRICIA BECK/Detroit Free Press

Buyers found million-dollar discounts last year in metro Detroit’s high-end housing market, where the top 10 home sale prices ranged from $2.2 million to $4.8 million.

But those bargains aren’t likely to be repeated this year: Sparse inventory can’t satisfy growing demand for the best addresses, brought on by a resurgent auto industry, local real estate professionals say.

“These big deals that went down won’t happen again,” said John Kucish, a real estate agent with Re/Max Classic in Farmington Hills, who sold a sprawling seven-bedroom home in West Bloomfield last year for $2.6 million. “I won’t be able to deliver a 16,000-square-foot house on Orchard Lake on two acres again for that price. No way.”

The most expensive house sold in 2010 was a Birmingham colonial built for Carole Ilitch, daughter of Mike and Marian Ilitch, and her former husband, David Trepeck; they sold it in 2002. The six-bedroom home with 11,009 square feet and impressive gardens had a list price of $6.39 million and sold for $4.8 million in August.

Nine of the houses on the list, which was compiled by Southfield-based Real Estate One, were in Oakland County and one in Washtenaw County’s Scio Township.

Most-expensive houses sold locally in 2010

Dana Lyon stood no chance against the English country home she saw in Birmingham last spring. The four-bedroom, 5,500-square-foot, 1926 home lured her with its charm, from the evergreen hedge that arches over the walkway to a heart-shaped doorbell.

“The minute we walked in the door, we knew this was the house,” said Lyon, an interior architect who recently relocated from Chicago. “When I walked in, I loved the scale of the living room and dining room and how the light came through the rooms.”

She paid $2.45 million for the home, which was last listed for $2.7 million. It features a sunken living room with a massive limestone fireplace and French doors leading out to a terrace, a gourmet kitchen, wine cellar, theater room, exercise room, elevator and a master suite with heated marble floors. It has four bathrooms and three half bathrooms and was completely renovated in 2005. The lower level has nearly 2,000 square feet.

The Top 10 metro Detroit sales prices in 2010 ranged from $2.2 million to $4.8 million, according to multiple listing service data compiled by Real Estate One in Southfield.

That compares to other distressed markets such as Las Vegas, where the highest 2010 home sales ranged from $3.1 million to $4.7 million, and Cleveland, with a range of $1.2 million to $2.7 million, according to Zillow.com data.

Amenities in this price range include a stately stone or brick exterior that contains at least 5,000 square feet, a wine cellar, theater room, bedroom suites and chef’s kitchens. Many of the top houses sit on more than 2 acres, had a waterfront location and unique features such as an indoor basketball court.

Half of the metro Detroit buyers paid cash for their luxury digs and just one was a foreclosure. Nine of homes were in Oakland County, and one was in Washtenaw County’s Scio Township.

The list excludes private sales, and some of those run higher than $4.8 million, including one just under $6 million in Oakland County, sold by Hall & Hunter Realtors in Birmingham, said J. Bradley Wolf, vice president and associate broker of the firm.

“We have seen some positive signs of stabilization in the past year in the luxury market. We are seeing higher demand and decreasing inventory,” Wolf said.

Demand picking up

Agents who sell in the luxury market have been busier lately than they have been in years, said Cindy Kahn, a Realtor with SKBK Sotheby’s in Birmingham. She said 2010 was her best year of eight in the business, with $20 million in sales. She knows of another agent in town who sold $40 million in residential real estate last year.

“The million-plus market is coming back, and that tells me that buyers have confidence,” she said.

Lyon’s Realtor, Sheila Levine, who is with Keller Williams Realty in Farmington Hills, said that inventories in the $1-million-and-above price range have fallen in the past year. That means fewer bargains as more sellers can afford to wait for the right buyer.

The inventory of houses on the market priced between $1 million to $1.999 million in Oakland County fell to 169 in the fourth quarter of 2010 from 229 in the fourth quarter of 2009, according to Real Estate One data.

“Obviously the pool of buyers at this price range is small. Sellers perhaps don’t need to sell, so they are not so quick to lower the price,” Levine said. “It’s a whole different mind-set and lifestyle.”

And as the housing market improves along with the renewed strength of the auto industry, big bargains on luxury homes may be harder to find.

Buyers coming with cash

Kimberly Nagy-Street, an agent with Max Broock Realtors in Birmingham, sold the second most-expensive house on the list, a $3.9 million three-story contemporary brick home. It sits on 2 acres on Upper Long Lake and was last listed for $4.9 million.

The house spans 15,865 square feet with a 4,000-square-foot lower level. It has six full bedroom suites with their own bathrooms, an indoor basketball court and a separate indoor pool building. The main home has a chef’s kitchen, two fireplaces, an elevator and first-floor master suite.

The owners looked at a dozen other homes before settling on this one. The sale helped Nagy-Street achieve her best selling year yet, with $10 million in home sales.

“Last year, we saw the first signs that the upper end of the market was coming back and it hasn’t stopped since,” she said. “This past year, I’ve seen more cash buyers. They are looking at real estate as a solid investment. It’s tangible.”

Tom Zibkowski, a Realtor with Realty Executives Midwest in Shelby Township, said that while there are signs of recovery, the luxury market isn’t quite there yet. And that means there are still deals to be had.

He sold a home in Oakland Township for $2.4 million last year that had been listed at $2.75 million. It has six bedrooms, seven full bathrooms and a half bathroom in 9,150 square feet, with an extra 2,850 square feet on the lower level. The gated estate on 12 acres has a nine-stall horse barn and indoor riding arena. The brick home is in Cape Cod style with an indoor lap pool, six fireplaces and a gourmet kitchen with a separate pizza oven.

“We have professional athletes, musicians, CEOs of large companies, and they are starting to move around a little bit,” he said. “In the million-dollar range, you still may get something that is 30% to 60% off. As you go up in price, you won’t get as much of a price break.”

In 2009, two Grosse Pointe homes made it on the Top 10 home sales list. For 2010, former NBA player Chris Webber’s home on Jefferson Avenue in Grosse Pointe came close — it sold for $2.1 million though it was once listed at $3.5 million, said Mark Monaghan, broker/owner of Sine & Monaghan Realtors Real Living in Grosse Pointe Farms.

Like others who specialize in the luxury market, he said he thinks it has stabilized and huge price reductions won’t happen as much this year because inventory levels in some areas and price ranges is too low.

“In Grosse Pointe Farms, for example, we have 10 buyers actively looking in the $5-million to $7-million range, but the inventory isn’t there. Once something comes on the market, we will see multiple bid situations.”

Contact Greta Guest: 313-223-4192 or gguest@freepress.com

View the entire article here: http://www.freep.com/article/20110425/BUSINESS04/104250379/1002/NLETTER01/Got-millions?-Here-are-the-most-expensive-metro-Detroit-homes&source=nletter-business

comments: 75 »
Apr 20

Home Construction Rose 7.2% in March from February

Posted in Uncategorized

New-home construction increases 7.2% in March

BY DEREK KRAVITZ
ASSOCIATED PRESS

Builders broke ground on more new homes last month, giving the weak housing market a slight boost at the start of the spring buying season.

Home construction rose 7.2% in March from February to a seasonally adjusted 549,000 units, the Commerce Department said today. Building permits, an indicator of future construction, rose 11.2% after hitting a five-decade low in February.

Still, the building pace is far below the 1.2 million units a year that economists consider healthy. And March’s improvement came after construction fell in February to its second-lowest level on records dating back more than a half-century.

Millions of foreclosures have forced home prices down. In some cities, prices are half of what they were before the housing market collapsed in 2006 and 2007. And more foreclosures are expected this year. Tight credit has made mortgage loans tough to get. Many would-be buyers who could qualify for loans are reluctant to shop, fearing that prices will fall even further.

A sign of the battered industry is the number of new homes finished and ready to sell dropped in March to a seasonally adjusted 509,000 units, the lowest level on records dating back to 1968. And the number of homes now under construction has fallen to a four-decade low.

“Housing starts remain at an extraordinarily depressed level,” said Dan Greenhaus, chief economic strategist at Miller Tabak + Co. “To put this in further perspective, a doubling of (new homes) from here would still put starts at the lowest level of any other recession.” During previous housing recessions, in the early 1980s and 90s, new home construction fell to more than 1 million homes per year. This year’s pace is slightly more than half those levels.

And the lack of any meaningful rebound in housing is stunting the broader economic recovery. In past modern-day recessions, housing accounted for 15% to 20% of overall economic growth. In the first post-recession year, between 2009 and 2010, housing only contributed 4% to economic growth.

Since the mid-part of last year, home construction and sales have instead detracted from the economy. Joshua Shapiro, chief U.S. economist at MFR Inc., said that’s a “large reason for the sub-par nature” of the rebound. New-home construction is down 6% since the recession ended nearly two years ago.

Single-family homes, which make up roughly 80% of home construction, rose 7.7% in March. Apartment and condominium construction rose 14.7%. Building permits increased to its highest level since December, spurred by a more than 28% jump in permits granted for apartment and condo buildings.

That increase in permits could signal a turnaround in the coming months, said Steven A. Wood, chief economist with Insight Economics. New homes typically take six months to build and the number of new permits is higher than the number of homes starting construction.

The increase in home construction activity was felt in most regions of the country. It rose 32.3% in the Midwest, 27.6% in the West and 5.4% in the Northeast. Construction fell 3.3% in the South.

New homes can spur job growth. Each new home built creates the equivalent of three jobs for a year and generates about $90,000 in taxes, according to the National Association of Home Builders.

The trade group said Monday that its index of industry sentiment for April fell one notch, to 16. That followed a one-point increase in March and four straight months of 16 readings. Any reading below 50 indicates negative sentiment about the housing market’s future and the index hasn’t been above that level since April 2006.

Most economists expect home prices — and by extension home sales and construction — to slip even further in 2011 before a modest recovery takes hold.

Apr 20

Zillow Goes Public, Files for $52 Million IPO

Posted in Uncategorized

Daily Real Estate News  | April 19, 2011

You may soon be able to buy stock in Zillow. The Seattle-based real estate Web site filed on Monday preliminary documents for an initial public offering. The company hopes to raise about $51.75 million for its IPO.
Zillow has not yet disclosed how many shares it intends to sell or the price for each share.
Technology Crossover Ventures and PAR Investment Partners have already agreed to buy a total of $5.5 million of common stock from Zillow, CNNMoney.com reports.
Zillow, founded in 2004 and originally known for its popular “Zestimates” home value estimates on homes across the U.S., has seen its Web traffic quickly grow. In March, it boasted 19.4 million unique users from its Web site and mobile app, a more than 90 percent year-over-year increase in traffic. Its revenue has also increased significantly. In 2010, Zillow’s revenue increased by 74 percent to $30.5 million, according to the Securities and Exchange Commission filing.
Source: “Zillow Files for $52 Million IPO,” CNNMoney.com (April 18, 2011)

Apr 20

Bill Would Allow Foreclosed Home Purchases with Retirement Funds

Posted in Uncategorized

Bill would waive retirement penalties to buy REOs

by KERRY CURRY
Capital
Monday, April 18th, 2011, 3:14 pm

A bill introduced in the U.S. House of Representatives would waive early distribution penalties on certain qualified retirement plans if the funds are used to buy a house that has been in foreclosure for a year or more.

Bill Posey (R-Fla.) introduced H.R. 1526 — the Housing Recovery Act of 2011. It has been referred to the Committee on Ways and Means.

“It’s not an end-all fix,” Press Secretary George Cecala said. “It’s just another idea to help the housing market.”

The idea is to add stability to neighborhoods by promoting purchases by owner-occupants or those seeking a second home rather than investors who immediately “flip” the home. Under the bill, the purchaser must agree to hold the property for at least two years to be exempt from early retirement plan distribution penalties.

The bill is expected to apply to distributions from Roth IRAs, 401(k) plans and company pension plans. It would require the person to use the retirement distribution within 120 days of receipt by buying a home that “has been in foreclosure for a year or more.”

Cecala said Posey, a Realtor, anticipates that the one-year period would begin at the point that the foreclosed property is listed for sale, but said the congressman is open to amending the bill to be more specific about when the clock would start ticking.

Several states have extremely drawn-out foreclosure processes. Foreclosures in judicial state average about 13 months from start to finish. But once foreclosures are repossessed by the lender and enter what is known as real estate-owned status, or REO, it is not uncommon for them to be snapped up once listed for sale.

In Posey’s home state, his district covers Florida’s “Space Coast” not far from Orlando area. He is owner and founder of Posey Realtors & Co. in Rockledge, near Cape Canaveral.

Florida accounted for nearly 9% of U.S. foreclosure activity during the first quarter, documenting 58,322 properties with a foreclosure filing, second behind California, which accounted for nearly 25% of foreclosure activity, according to RealtyTrac.

Florida foreclosure activity decreased 47% from the previous quarter and was down 62% from the first quarter of 2010 — although the state still posted the nation’s eighth highest foreclosure rate with one in every 152 housing units with a foreclosure filing during the first quarter.

Write to Kerry Curry.

Follow her on Twitter @communicatorKLC.

View the entire article here:

http://www.housingwire.com/2011/04/18/bill-would-waive-retirement-plan-withdrawal-penalties-to-buy-reos?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+housingwire%2FuOVI+%28HousingWire%29

comments: 63 »
Apr 19

Detroit: Great Charities Helping Others Get a Fresh Start

Posted in Uncategorized

Helping make houses homes

BY JUDY ROSE
DETROIT FREE PRESS SPECIAL WRITER

It made me happy that when I fell short…

Someone cared to help out.

Wanting to know, do you need a bed?

A paint job for your walls? What about a couch?

The simplest things that others take for granted

Mean the most to others who really never had them.

– Krista Poole

Imani Coates, and his mother Raven Coates, of Royal Oak enjoy their completely redesigned home by the group Humble Design, which is a nonprofit that did a home makeover for them, after they fled an abusive marriage. "All we had was a chair and our clothes," Coates says. / KATHLEEN GALLIGAN/DFP


As a manager at Forgotten Harvest food bank, Krista Poole, 31, knows how it feels to help people who try to make a comeback. But in 2009 it was she who hit a brick wall.

Her son and daughter became school-aged and needed more room, so Poole let the lease lapse on their tiny apartment.

Then reality clobbered her. On her single-mom paycheck, a larger home was almost out of reach. And when she finally found one to rent, she was still in trouble. Years before, while unemployed, Poole left a large electric bill unpaid. DTE would not hook up her new home unless she paid the old bill — not possible.

Stress turned to self-pity, Poole says. “I could not provide my children with something as simple as a stable living environment.”

Then a colleague told her about Humble Design, a small, new group of volunteers who help people starting over from scratch set up their first house. That’s more than furniture. The nonprofit provides decorations, curtains, toys, linens and dishes. Volunteers paint, hang art, arrange throw pillows as though it was their own home.

Humble Design paid off Poole’s old electric bill.

Most Humble Design clients are worse off than Poole, says co-founder Treger Strasberg. They’re fresh out of a homeless or a domestic abuse shelter.

“Quite frankly they’re like refugees. Refugees from their own marriages,” Strasberg says. “They’re running, with no possessions. They left everything behind.”

Raven Coates of Royal Oak is among those who left a bad relationship.

Coates and her son Imani, had lived relative-to-relative and shelter-to-shelter since 2003 when they’d fled an abusive marriage. When the South Oakland Shelter found them a rental home in Royal Oak last year, the family needed everything down to a mop and detergent. A volunteer group pitched in.

“All we had was a chair and our clothes,” Coates says. “They asked what I needed. They took a look; they knew I needed everything — forks, spoons, trash can, lamps.”

Now she says, “I never imagined having such nice things. It’s not just junk. (They are) things you see in a magazine.”

Outside volunteers may adopt a house if the job is especially big. This happened in Coates’ case.

“We deliver the larger stuff,” Strasberg says. “They’ll bring decorations and curtains and clean and set it up.”

One group calls itself Quarton Lake Moms. Another is a Royal Oak bridge club.

Once Humble Design took Poole as a client, the volunteers tackled their usual work, making the house a home.

“They gave me a bed for my daughter, for my son, paintings for my wall, art,” Poole says. “I felt like I was on TV, doing a home makeover show.”

And the nonprofit doesn’t forget the kids. Volunteers made a basement playroom for Poole’s children, Kamaria Tramble, 7, and Demari Tramble, 6. They carpeted and stocked it with toys, even fancy dress-up clothes for Kamaria.

“I was just in tears and disbelief,” Poole says. “I’m used to helping other people. It was kind of a surreal moment.”

Unlike many furniture charities, Humble Design delivers, Strasberg notes. “Imagine a woman with three kids who leaves a marriage, trying to figure out how to get a dresser to her home when she doesn’t have a car.”

In less than two years, the group has prepared 47 homes in Detroit and Oakland County. Haven, COTS, Troy’s Community Housing Network, and Cass Community Social Services are among the agencies that send clients to Humble Design.

Strasberg and Ana Smith founded Humble Design in June 2009 when both were recent newcomers to metro Detroit. They spread it among friends by word of mouth, and those friends spread it further. Its Web site is www.humbledesign.org.

They collect lightly used furniture and household goods, store them in a rented space, then draw from this when a shelter sends them a client. E-mails go out to participants, says Strasberg. “Does anybody have beds? Anyone have dressers? Sheets?”

Often it’s smoother than logic would predict. “We seem to have this sort of Kismet balance between new clients coming in and new donations,” says Ana Smith.

Mike the Mover, a.k.a. Mike Holowecki, picks up and delivers at a discount.

For the first time in two years, Humble Design is on a short hiatus. Even at a discount, Mike the Mover’s bill has grown too big. They’ve told the shelters not to send clients for a bit.

The group could use three things. First, cash donations to help pay moving costs. Second, the donation of warehouse space in south Oakland County to replace space that costs $200 a month. Third, a source for free new mattresses.

Strasberg says they’ll be back soon to ease re-entry for folks with no home.

“Just to have a place where they can feel like their kids have a safe place to sleep. To eat together, to not have to worry about sheets or towels. It sets your life back on the right track.”

For more information on Humble Design or to donate, e-mail info@humbledesign.org or call 248-227-5051..

View the entire article here: http://www.freep.com/article/20110417/BUSINESS04/104170386/1002/business/Helping-make-houses-homes


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