Builder Incentives Can Distort Home Value
As builders get creative with rebates and incentives, Fannie Mae raises the red flag to lenders citing "Value Distortion". Situations such as this: "shows signs of price distortion is the sale of a home on Olen Mattingly Road in Avenue, Md. The two-story, 2,158-square-foot home, built within the past two years, was originally listed for sale in February 2005 for $635,000 but languished on the market for more than a year, according to local real-estate agents. The owner, builder Bennett Homes LLC, gradually reduced the price to $469,000 by March 2007. In May, however, the home sold for $600,000, far above the recent asking price. Vangie Williams, a real-estate agent who represented the buyers, says the sale involved a payment by the builder to an organization that collected fees for finding buyers." , are prompting Fannie Mae to tighten disclosures of incentives and rebates to ensure banks are loaning on true values of homes.Builder Incentives Distorting Values
Full Article: :Builder Incentives Can Distort Home Value
News
2007 24 Dec
Latest Construction Spending Data Shows Continued Slowdown
Slowing to a snail's pace, construction spending continues to fall. This fact will have some effects on the overall economy at some point.
"Spending on private construction was at a seasonally adjusted annual rate of $863.2 billion, 1.4 percent below the revised September estimate of $875.2 billion. Residential construction was at a seasonally adjusted annual rate of $503.7 billion in October, 2.0 percent below the revised September estimate of $514.2 billion."
Full Article: :Latest Construction Spending Data Shows Continued Slowdown
News
2007 01 Dec
Only 24% of Californians Can Afford Entry Level Housing
A recent study by the California Association of Realtors shows that only 24% of Californians have enough income to qualify for a typical entry-level home at $482,910.
Full Article: :Only 24% of Californians Can Afford Entry Level Housing
News
2007 01 Dec
Now is the time to build
Home Building Costs are low. Builders are on the sidelines looking for new avenues of revenue. Dust off your plans, now is the time to build.
Full Article: :Now is the time to build
News
2007 30 Nov
Toll Brothers Enters Atlanta Market
Toll Brothers to build a 311 home community in the Atlanta metropolitan area.
Toll Brothers Forbes Article
Full Article: :Toll Brothers Enters Atlanta Market
News
2007 06 Sep
Housing Prices Increase In 97 of 149 Markets
All real estate markets are not created equal. 65% of the nations real estate markets saw median home price increases per BusinessWeek.
Housing strong in many metro areas
Slide Show
Healthiest housing markets:
Salt Lake City + 21.9%
Binghamton, N.Y. + 19.8%
Salem, Ore. +16.7%
Farmington, N.M. +14.0%
Allentown-Bethlehem-Easton, Pa. +12.8%
Full Article: :Housing Prices Increase In 97 of 149 Markets
News
2007 05 Sep
Fuel Costs Hamper Savings, Lumber Prices Retreat Other Costs Rise
Despite a slowing home building market material costs aren't going down.
Full Article: :Fuel Costs Hamper Savings, Lumber Prices Retreat Other Costs Rise
News
2007 26 Aug
New home buyers finding it hard to sell current homes in slow real estate market.
The slow real estate market is causing some new home buyers to sweat as the possibility of paying two mortgages becomes a reality when current homes remain on the market longer. Builders are offering record incentives, but would be buyers are struggling with the reality of selling the current home causing them to walk away from juicy deals.
Full Article: :New home buyers finding it hard to sell current homes in slow real estate market.
News
2007 26 Aug
Mortgage Crisis Up-ends Home Builders
The recent mortgage crisis is causing the publicly traded home builders to take a beating. This morning Bank of America analysts downgraded Hovnanian, Toll Brothers and Standard Pacific while reducing stock price targets by almost a third on all the home builders they cover.
Full Article: :Mortgage Crisis Up-ends Home Builders
News
2007 21 Aug
