Real Estate Sifter

RISMEDIA, December 30, 2009—With 2010 right around the corner, what will you be looking forward to in the New Year? Buying your first home? Sending your last kid off to college? Or obsessing over your own personal mountain of debt, even more worrisome in this uncertain economy? It may feel like “Resolution Impossible,” but if you follow Eric Tyson’s advice, you’ll remember ‘10 as the year you finally took control of your financial future.

“While the situation is improving, Americans carry too much consumer debt,” says Tyson, author of Personal Finance for Dummies, 6th Edition.. “If you have credit card debt or auto loans, take some solace in the fact that you’re far from alone and that many others have overcome these hurdles. Consumer debt is not okay, particularly in a slow economy such as this one. It can damage your personal relationships and mental well-being, not to mention the stability of your financial future.”

Here are a few tips from Tyson that will help you improve your financial health in 2010:

Partake in a little self-reflection. A misaligned mindset toward spending and shopping—compulsive or otherwise—can severely affect your financial and personal well-being. If you think you might have a problem with shopping or spending, there are several questions you should ask yourself:

-Do I feel guilty about shopping?
-Is my shopping causing financial trouble?
-Is my shopping, spending, and accumulated debt leading to feelings of helplessness, anger, confusion, fear, or depression?

Make a plan and stick to it. The reason so many New Year’s resolutions fail is that we simply state the thing we want to improve and then never create a plan for helping us get from point A to point B. Most people don’t like to plan unless we’re talking about something fun, like a vacation. But actually, planning for your financial future is a little like planning a vacation. You’re organizing your money and time so that you get to do all the great things you want when you get there. Look at it that way, and you might actually enjoy the process.

Get rid of your four-wheeled debt. Too many people define necessities by what those around them have. A brand new car is not a necessity, although some people try to make it one by saying, “I need a way to get to work.” Guess what? There are plenty of far less expensive used cars out there that will also make it to your office. If you take out an auto loan to buy a car that you really can’t afford and you take a similar approach with other consumer items you don’t truly need, you’re going to have great difficulty saving money and accomplishing your goals. Moreover, you’ll probably feel stressed all the time—which is a poor trade-off for the (short-lived) “new car smell.”

Start making your purchases based on need, not emotion. It can be easy to give in to all of those advertisements telling us how much we “need” that new car, expensive gym membership, or trendy outfit. Marketers play on insecurities, fears, and guilt and suggest that you can feel better about yourself by buying their products. You won’t be able to overcome spending and consumer debt until you recognize these pressures and how they corrupt your buying decisions.

Research before you enter the store. Prior to going shopping for necessities that aren’t everyday purchases—say, a new refrigerator—do some research first. Your research will help you identify brands, models, and so on that are good values. You don’t want to make an expensive mistake.

Watch your food budget. Dine out less and keep stock of the groceries you already have. Learn to cook if you don’t know how. Try to keep a healthy inventory of groceries at home. This will minimize trips to the store and the need to impulsively dine out because your cupboard is bare. Try to do most of your shopping through discount warehouse-type stores, which offer low prices for buying in bulk, or grocery stores that offer bulk purchases. Saving on the amount you spend on food will help you put more money toward paying off your debt and eventually setting money aside for investments.

Become more energy efficient. Check out opportunities to make your home more energy efficient. Adding insulation and weather-stripping, installing water-saving devices, and reducing use of electrical appliances can pay for themselves in short order. Many utility companies will even do a free energy review or audit of your home and suggest money-saving ideas.

Watch what you are paying for insurance. Many people overspend on insurance by carrying coverage that’s unnecessary or that covers small potential losses. Coverage of small losses, such as $100 or $200, is not useful for most people since such a loss wouldn’t be a financial catastrophe.

“It won’t be easy getting out of debt, and it’s certainly not something you will be able to achieve overnight,” says Tyson. “Like losing weight, it’s something that takes constant dedication but has a great payoff in the end. Whenever you lose focus or feel like giving in, think about the wonderful benefits of financial well-being. Once you’re out of debt, the money you are able to invest will mushroom into substantial savings that will allow you to get more for your money,” concludes Tyson.

About the Author
Eric Tyson is one of the nation’s best-selling personal finance book authors and has penned five national bestsellers. His work has been featured and quoted in hundreds of local and national publications and media outlets. He was also a featured speaker at a White House conference on retirement planning. A dynamic and provocative speaker, he has spoken at many corporations and nonprofits.

For more information, visit www.erictyson.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

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RISMEDIA, December 30, 2009—This week’s headlines from the NATIONAL ASSOCIATION OF REALTORS® include: Resources to protect your clients through NAR’s Right Tools, Right Now initiative, save up to 50% on select rentals from REALTOR Benefits® Program Partner, Budget, and Another Big Gain in Existing-Home Sales as Buyers Respond to Tax Credit. Continue to look for the NAR Pulse on Wednesdays.

Right Tools, Right Now – Resources to Protect Your Clients

The Right Tools, Right Now initiative offers a number of FREE informative eProducts to help you educate consumers and gain new clients including ‘A Guide to Mold, Moisture and Your Home,’ ‘The Facts About Mold,’ and ‘Protect Your Family From Lead in Your Home.’ For more details and to see more offers, visit www.REALTOR.org/RightTools.

Save up to 50% on Select Rentals from Budget

Renting a car from Budget, a REALTOR Benefits® Program Partner, is now more affordable than ever thanks to a special discount offer available to NAR Members. Now through March 31, 2010, members can save up to 50% at participating Budget locations. Restrictions apply so check the website for complete details and to get the required BCD code.

Another Big Gain in Existing-Home Sales as Buyers Respond to Tax Credit

Existing-home sales rose again in November as first-time buyers rushed to close sales before the original November 30 deadline for the recently extended and expanded tax credit, according to the NATIONAL ASSOCIATION OF REALTORS®.

For more information, visit www.Realtor.org.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

To see last week’s NAR Pulse, click here.

RISMEDIA, December 30, 2009—Being a loan modification and short sale trainer for the last few years, I have heard numerous complaints about why agents dislike the short sale process and why they stay away from them. But as short sales continue to dominate the real estate landscape, it is crucial that agents reposition their view on short sales, so they can achieve short sale success.

The 5 most popular excuses that agents have when it comes to working with short sales include:
-Banks do not want to do short sales.
-The short sale process takes forever
-The bank never got my fax
-The bank won’t take my offer
-The parties involved won’t cooperate

The 5 biggest mistakes agents make when processing a short sale file include:
-Not checking bank guidelines before they submit the file
-Not doing a BPO or property valuation.
-Not submitting a complete bulletproof file
-Not following up with everyone involved including the bank
-Sending in lowball offers

The easiest way to avoid the short sale blues and the common short sale pitfalls is by having a fresh, positive attitude toward the new number one real estate niche…short sales.

In order to be successful at short sales, agents must be willing to do the following:

The first thing you should do is create a winning team of escrow officers, BPO Specialists, other experienced and helpful agents, processors, negotiators, underwriters, etc. The second thing you should do is learn how to market to people who potentially will be open to a short sale. One way many agents do this is to order lists of people who are 30-60 days down on their mortgages and send postcards, knock on doors, etc. to counsel the homeowners as to what their options are. You should also be constantly seeking new ideas and technology to help with the process and you need to learn how to put together a winning package and get it to the right department. Ninety percent of the battle is won or lost in the package submitted. If you find your files consistently causing problems for you, you need to submit better packages. In addition, you need to follow-up with everyone involved in the short sale process from the bank, buyer, seller and of course, the other agents until the file is closed.

Teaching and coaching a homeowner with good, sound advice will establish incredible rapport, which is necessary to earn the trust of a potential listing; in what many times is their darkest hour. The only way to confidently portray your short sale knowledge is by attending seminars, using technology to your advantage, or learning from the best in the field. The best are always willing to take a minute and help you out.

I have seen firsthand that most of the frustration that can be attributed to the short sale stigma is self-inflicted and can be avoided. If the file is complete, organized, and you follow the proper steps, you can ensure short sale success.

For more information, visit www.ShortSaleSuccessInc.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

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RISMEDIA, December 30, 2009—The tough real estate market that we have experienced during the past year has caused real estate professionals across the country to look for ways to become the new powerhouse in their market. Here, Michael Pierson, President and Chairman, Prudential Rubloff in Chicago, Illinois discusses how the creation of Prudential Rubloff has enabled Pierson and his team to come together and stay ahead in today’s market.

Michael Pierson
President and Chairman
Prudential Rubloff
Chicago, Illinois

Years in real estate: 24
Number of offices: 17
Number of sales associates: 900
Current conditions: The city of Chicago is off 20% in total closed sales volume. That being said, in the last 120 days (at press time), we’ve seen increases in closed business over this same time last year. We are narrowing the gap and currently running in single digits behind this same time last year. So we are outperforming the market.
How to help agents survive: Our managers are trained extensively in agent business planning and agent coaching. They are very engaged in helping agents grow their business. If the market is down 20%, the truth is, you have to get somebody else’s business, so we help them return to the prospecting activities they might not have done for a long time.

What led to the decision to recently merge Prudential Preferred Properties and Rubloff Residential Properties to become Prudential Rubloff…especially in the midst of a real estate downturn?
A few things. One, if you have a passion about what you do and you have the confidence that even during the toughest of markets people are going to exchange real estate, you have to have a strategy for how to get more than your share of that exchange. Rubloff has been an incredibly highly respected and regarded company in Chicagoland for 80 years. There were a lot of cultural synergies—both firms had the highest agent productivity in the marketplace and a respected leadership. Both companies were strong players in Chicago. The merger allowed Rubloff to expand all the way up to the North Shore, which is a wonderful, high-end part of the market, and took Prudential into the second-home market, allowing us to expand in that direction.

What advantages are gained by combining such a strong local brand with a strong national brand like Prudential?
The merger brings a national affiliation to a great company. But nothing has changed about that company being locally owned and operated. We believe real estate is unique to each local marketplace and this merger allows us to be highly responsive in those local markets. But any company is only as good as the quality of its leadership, management and sales agents. This merger positions us to have a significant presence—it gives us about 850 agents, about 550 of those are in the city of Chicago where we are a major player, and 300 agents on the North Shore of Chicago.

What are the technological advantages that will result from the merger?
Those agents from Rubloff will now have access to Online Advantage, a proprietary Prudential program that allows clients to take a quantitative approach to what’s going on with their property in the marketplace. All agents also now have access to Marketwatch, a real-time data report that provides weekly, real-time updates on statistics like absorption time and median price—they can now share this information with their sphere of buyers and sellers. These are 11-page reports with one-page summary reports that reside on the agent’s website. These summary reports are tied to drip marketing and lead management programs, enabling our online marketing reach to go much further.

How will the merger enable you to better position the firm in today’s competitive marketplace?
The merger allows us to be highly competitive and vie to become the top broker in the Chicago marketplace within 24 months. Both companies were highly competitive in the market—we now have highly productive agents in key locations.

How is the merging of cultures going so far?
It’s going very well. We’ve spent a lot of time on education on both sides of the merge. We’ve been spending a lot of time on training and productivity programs and rolling out technology tools. The most important thing is that we’re spending a lot of time getting to know people. We’ve always operated in a family-like culture and we plan to continue to do so.

How will the merger allow you to better serve home buyers and sellers?
Our online reach will be dramatically expanded between the two organizations. I don’t think there’s anyone in the market who has online marketing programs that can compete with ours. The exposure we can provide to properties represents a huge advantage for sellers. In regards to buyers, 25-50% of our market is first-time buyers. We have a huge chance of capturing that audience through our online programs. In my opinion, we are better positioned strategically to attract buyers and market properties.

Where do you see the market headed in 2010?
I think a lot of the refinance business will no longer be there in 2010. I think we will start to see more purchase business in 2010. We have some pent-up demand and I think people are going to get on with their lives.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

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RISMEDIA, December 30, 2009—RE/MAX of New York, Inc., one of the leading providers of comprehensive real estate services in New York, along with Bank of America, will present a free educational forum focusing on regional and national real estate and economic trends on January 20th at the Melville Marriott from 9:00am to Noon. The seminar will feature guest speaker, and former chief economist of the National Association of Realtors, John Tuccillo. His presentation will be followed by a question and answer session with the public. Tuccillo’s presentation will cover topics including:

-Real life predictions for the U.S. economy
-How the economy will affect you and the regional economy
-How the real estate industry will impact you
-Discover how the U.S. economy affects our local economy
-Discover why the market is changing
-Take away forecasts that will change your perceptions of the regional and national economy

Tuccillo is one of the foremost real estate economists in the United States. His presentations on the economic outlook, real estate markets and change in the real estate business are witty, informative and provide information for both the general public as well as professional audiences. His experience and counsel are sought out by major real estate firms and technology firms interested in enhancing their presence in the real estate sector.

“RE/MAX is dedicated to provide valuable real estate resources to the communities we serve and to all real estate professionals. The topics covered during this forum will answer many of the most pressing questions about what is happening and will happen in the real estate sector as well as many frequently asked questions about economic trends. Tuccillo is one of the most sought after real estate experts in the country; his presentation will be insightful and informative for all those in attendance,” said Henry F. Weber, President and Regional Director of RE/MAX of New York, Inc.

For more information, visit www.remax.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

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RISMEDIA, December 30, 2009—The weekly average rate borrowers were quoted on Zillow Mortgage Marketplace for 30-year fixed mortgages increased sixteen basis points last week to 4.93%, up from 4.77% the week prior, according to the Zillow Mortgage Rate Monitor, compiled by leading real estate website Zillow.com. Rates for 15-year fixed mortgages rose thirteen basis points to 4.37% from 4.24%, and 5-1 adjustable rate mortgages increased thirteen basis points to 3.98%, from 3.85% the week prior.

The volume of mortgage requests last week fell 26% from the prior week. Of last week’s requests, 35% were for refinance loans, 63% were for purchase loans and 2% were for home equity loans. The prior week, 43% of requests were for refinance loans, 55% were for purchase loans and 2% were for home equity loans.

Rates for 30-year fixed purchase mortgages were even higher, with the average rate on Zillow Mortgage Marketplace at 5.06%. Thirty-year fixed mortgage rates varied by state. Georgia mortgage rates, Maryland mortgage rates, North Carolina mortgage rates, Texas mortgage rates and Virginia mortgage rates increased the most, from 4.81% to 5.01% in Georgia, from 4.85% to 5.04% in Maryland, from 4.84% to 5.03% in North Carolina, from 4.74% to 4.93% in Texas and from 4.82% to 5.01% in Virginia. New York mortgage rates (5.12%) and Illinois mortgage rates (5.10%) were the highest in the country, while Colorado mortgage rates (4.86%) and California mortgage rates (4.88%) were the lowest. California mortgage rates were the most requested among all states.

For more information, visit www.zillow.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

RISMEDIA, December 29, 2009—This is the time of year when columnists either write about the major events of the past year or make predictions about the coming year. If you don’t know, I’ll let someone else tell you about 2009.

I’m far more interested in getting a jump on next year’s opportunities and discoveries. And, just as important, I want everyone to embrace 2010 feeling upbeat, confident and charged with energy. Things have been down so long that they just naturally have to be heading up. Absolutely!

So, I set out to make a list of all of those things that will be heading up next year. I was hoping to predict a rebound in both the economy and the real estate industry.

It looks like more of the same piled higher and deeper. I really hope I’m wrong. My temperament is upbeat by nature. Just from the standpoint of logic, I believe that it is more productive to be optimistic than pessimistic, that the taste of life is sweeter if we choose to embrace the experience with wonder, curiosity, and hope.

But, when the canary in the mineshaft topples off of his perch, even Pollyanna will be looking around for the exit sign.

In 1971, macabre cartoonist Gahan Wilson published a collection of his work titled, I Paint What I See. Both E. B. White and Diego Rivera used the line.

I ask questions and I go where the answers take me. Then I write about not just what I find but what it likely means. I’ve been writing about real estate for more than 30 years and it has always been a struggle for the industry to admit how things really are. I write what I see, but it doesn’t always get published.

As much as I wish I could say that better times are right around the corner, the facts tend to suggest otherwise.

Here are the influences that argue against short-term job growth or a sustainable economy.

1. Interest rates will rise

If it isn’t one thing it’s another. Just as it looks as though things might be starting to reach equilibrium, yet another obstacle to recovery looms. This isn’t complicated conjecture; the more competition there is for money, including federal, state, and municipal governments, the more it will cost to borrow, and the less that will be available to create new jobs. Ironic that now more than 30 states are being forced to borrow the money to pay unemployment benefits.

Juggling two wars and bailing out Wall Street requires massive Federal borrowing.

In December of 1980, the prime rate peaked at 21.5% and the cause was massive government borrowing. Just saying…….

2. Energy prices will rise

Energy includes more than gasoline, of course, but using just our experience at the pump, it’s pretty obvious that despite how gas prices seem to bounce up and down on a daily basis, they just keep on going up. In the end, the price never quite returns to its lowest point and, on the other end, constantly pushes up the higher price. If you check your gasoline bills for a few months, you will certainly see that, while a month or two might be lower, the annual cost just keeps going up.

The recent storms, low levels of reserves, and price manipulation for maximum company profits will push gas prices higher and drag other energy sources up with it.

3. Food prices will rise

If interest rates rise, the money needed by agribusiness to fund long production cycles will cost more. As always, that cost must be born by the consumer. If energy prices rise, production, transportation, and distribution costs will increase.

4. Inflation will rise

Inflation almost sounds positive, but what it really means is shrinkage. Inflation increases when the currency loses buying power. I’m no John Maynard Keynes but I know this: increases in the cost of money, energy, and food, will result in a dollar buying less.

5. Taxes will rise

Not only do we need to keep picking up the tab for the annual cost of operating our grossly inefficient and misdirected governments, but we will need to pay back all of the money we have and continue to borrow to cover the massive shortfall between what we spend and what we can afford.

I have heard it said that the improving economy will mean greater corporate profits which, in turn, will result in greater tax revenues and everything will be just fine.

I am not reassured by that argument. We are seeing record corporate profits in oil, banking, insurance and health care. Their lobbyists have made certain that the taxes on the profits of these entities are minimal.

Poor, old Leona Helmsley. She never would have gotten jail time except that she said the unmentionable and offended the wrong people. Her remark, “Only the little people pay taxes,” is quite accurate. The rich pay accountants instead of taxes and so do corporations.

6. Litigation will rise

Oh, to be a lawyer in times like these. Here is my short list for potential litigant categories:

• The Securities and Exchange Commission has thousands of cases in progress and has only scratched the surface in its investigation of everyone from senior hedge fund managers to street gangs.

• Investors, such as pension funds and hedge funds, will no doubt sue the lenders and the rating agencies for fraud because they bundled 2/28 loans and paid to have them rated Triple A.

• Sellers of credit default swaps, protection sellers, will sue buyers of credit default swaps who knew for a certainty that defaults would occur. They will also sue insiders who knew the loans would fail and bought multiples of the underlying value, such that a default on a $300,000 loan could earn $5 million to $10 million for the owner of the default swaps.

• Lenders in judicial foreclosure states will sue borrowers to foreclose and, in certain instances, for deficiencies.

• Borrowers in all states, encouraged by a wave of recent court decisions favoring homeowners, will come forward to challenge the right of the foreclosing entity and assert their predatory lending claims.

• Buyers of foreclosures and short sales will be suing real estate agents, title companies, and the pretender lenders who are unable to provide clear title to the property because the loan was securitized.

• In at least one state, homeowners who lost their homes to foreclosure dating back to 1989 now have standing to sue for compensation.

• States’ Attorneys General will be filing complaints against all major lenders on behalf of their residents.

• Parties to a bankruptcy discharge will sue their BK attorneys for not challenging the bank’s relief from stay motions for not being a true party in interest.

7. Compensation for CEOs will rise

For many years, Business Week has been comparing average CEO annual pay to average factory worker pay. The ratio of CEO pay to factory worker pay rose from 42:1 in 1960 to as high as 531:1 in 2000, at the height of the stock market bubble, when CEOs were cashing in big stock options. It was at 411:1 in 2005.

It’s even more revealing to compare the actual rates of increase of the salaries of CEOs and ordinary workers; from 1990 to 2005, CEOs’ pay increased almost 300% (adjusted for inflation), while production workers gained a scant 4.3%. The purchasing power of the federal minimum wage actually declined by 9.3%, when inflation is taken into account.

8. Commercial defaults and bankruptcies will rise

All of the focus on securitized home mortgages has drawn attention away from the securitized debt used to acquire huge companies that were stripped of their assets and abandoned. Well-known examples include, Mervyns and Chrysler, both taken over by Cerberus Management with borrowed money and then bled of their cash and assets.

Of course, there are many other dramatic examples of this looting, but this year will reveal that many other companies are targeted for the same treatment.

It’s a formula that works: borrow money to buy a valuable asset, issue securities secured by the company, buy credit default swaps betting the company will fail, loot the company and its pension fund, and walk away. Never has failure paid better.

9. Social media usage will rise until you hit the ‘unfriend’ button.

There are about 350 million world wide users of Facebook alone, and some experts are predicting that this is only the beginning. But now that those Tanna tribesmen from Meet the Natives are into it, I’m not sure this isn’t about tapped out.

By analyzing the growth rate of social media and projecting growth based on recent performance, by March 11, everyone will have said everything there is to say and there will be way too many photos of cute pets and sunsets to bother with.

Responding to the inane blather of 3,000 “friends” will seem more like a chore and less like excitement, and people will move on to the next big thing in the arena of self-aggrandizement.

A lucrative industry will grow in the area of removing unflattering images from the Internet. Think of the Internet as a cyber tattoo; once it’s there, you need a professional to remove it.

For a variety of reasons, both usage and expansion will level off. Life marches on, and so do relationships. So, the next time someone “unfriends” you, you may already have blocked them. Feels good, doesn’t it? So, at least there is that to look forward to.

“May you live in interesting times.” The phrase is attributed to the Chinese, but there has long raged a debate about whether the expression is intended as a blessing or a curse.

The way events are shaping up, 2010 has the potential to be recalled for historical events. Those events will no doubt include numerous examples of Americans rising to meet the challenges of a dramatically changing world.

George W. Mantor is known as “The Real Estate Professor” for his consumer education efforts including a long-running radio program, monthly workshop series, public appearances, and frequent articles.

During a career dating back to 1978, he has amassed experience in new home and resale residential real estate, resort marketing and commercial and investment property.

Prior to starting his own real estate and mortgage brokerage in 1992, he had been Director of Training and Customer Service for Great Western Real Estate. In addition, he has served on virtually every real estate committee, including a term as a Director of the California Association of REALTORS.

About the Author: George is a nationally respected authority on all areas of real estate and is frequently quoted in a wide range of publications. He is an oft invited guest of Fox Business Network and for many years, he was the host of “Keepin’ It Real…Real talk about the real thing, real estate” on KCEO radio.

The Real Estate Professional includes him in “a directory of the Nation’s outstanding authors, columnists, and speakers. His articles have also recently appeared in Real Estate Finance, The Real Estate Professional, National Real Estate Investor, Broker Agent News, and Realty Times. His blog is http://www.realtown.com/gwmantor/blog.

RISMedia welcomes your comments and questions. Email realestatemagazinefeedback@rismedia.com.

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RISMEDIA, December 29, 2009—Florida’s existing home sales rose in November 2009, marking 15 months that sales activity has increased in the year-to-year comparison, according to the latest housing data released by Florida Realtors.

Existing home sales rose 61% last month with a total of 14,026 homes sold statewide compared to 8,694 homes sold in November 2008, according to Florida Realtors. Statewide sales of existing condos increased 111% last month compared to November 2008’s sales figure.

For the second month in a row, all of Florida’s metropolitan statistical areas (MSAs) reported increased existing home sales and higher condo sales in November. A majority of the state’s MSAs have reported increased sales for 17 consecutive months.

“The extended and expanded federal homebuyer tax credit will continue the positive momentum of the housing sector’s recovery- people will want to take advantage of this incredible, not-to-be-missed opportunity to buy a home of their own in Florida,” says 2009 Florida Realtors President Cynthia Shelton, CCIM, CRE, a broker and director of investment sales with Colliers Arnold in Orlando.

“For 15 months now, statewide sales of existing single-family homes in Florida have increased each month compared to the year-ago figures. The continued, gradual absorption of housing inventory will help stabilize home prices. National research notes that housing affordability is at its peak and the highest on record: Along with still-low mortgage rates, it means that the buying power of a typical family has never been better.”

Florida’s median sales price for existing homes last month was $139,000; a year ago, it was $158,200 for a 12% decrease. Housing industry analysts with the National Association of Realtors (NAR) note that sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes. The median is the midpoint; half the homes sold for more, half for less.

The national median sales price for existing single-family homes in October 2009 was $173,100, down 6.8% from a year earlier, according to NAR. In California, the statewide median resales price was $297,500 in October; in Massachusetts, it was $287,000; in Maryland, it was $250,210; and in New York, it was $209,900.

According to NAR’s latest industry outlook, home sales are experiencing a pendulum upswing. “Keep in mind that housing had been underperforming over most of the past year,” said NAR Chief Economist Lawrence Yun. “The tax credit is helping unleash pent-up demand from a large pool of financially qualified renters, much more than borrowing sales from the future. In the second half of 2010, if home values show consistent stabilization or even a modest increase, then home sales could register normal healthy levels.”

In Florida’s year-to-year comparison for condos, 4,889 units sold statewide last month compared to 2,320 units in November 2008 for an increase of 111%. The statewide existing condo median sales price last month was $104,400; in November 2008 it was $131,400 for a 21% decrease. The national median existing condo price was $172,900 in October 2009, according to NAR.

Interest rates for a 30-year fixed-rate mortgage averaged 4.88% last month, a significant drop from the average rate of 6.09% in November 2008, according to Freddie Mac. Florida Realtors’ sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

Among the state’s smaller markets, the Tallahassee MSA reported a total of 174 homes sold in November compared to 100 homes a year earlier for a 74% increase. The market’s existing home median sales price last month was $162,000; a year ago it was $170,000 for a 5% decrease. A total of 5 condos sold in the MSA in November, up 150% over the 2 units sold in November 2008. The existing condo median price last month was $110,000; a year earlier, it was $95,000 for an increase of 16%.

For more information, visit www.floridarealtors.org.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

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RISMEDIA, December 29, 2009—Whatever the label—Gen Y, Millenials, Echo Boomers or Generation Now—the next generation of home buyers is a different kind of consumer. Gen Y is leading the charge into the future, and they are wired, inspired and viewing life through a different lens.

As a Boomer, it’s sometimes hard for me to realize that the first tier of the Gen Y group, born just before 1980, has already passed the 30-year-old mark. My daughter, the quintessential Gen Yer, is now in her late 20s, married and has already purchased her first house. She and her contemporaries are thoughtful, idealistic consumers who, as first-time home buyers, are often willing to choose place over space in order to have the lifestyle they envision. According to Yankelovich, Inc., the relative income of the average Gen Y is twice as high as it was for Boomers at the same age. This new group of home buyers is also much more educated. With so many options for information gathering at their fingertips, they will likely come to you armed with knowledge about marketplace options aligned with a precise list of wants and needs.

Personal authenticity is the guiding principle for Gen Y. They’ve grown up with diversity as the norm, and community and social interaction are important to them. A neighborhood or condo complex with owners of mixed generations, family structures and global views will likely appeal to Gen Y clients, as will a home with good traffic patterns and flexible space for entertaining and accommodating overnight guests. Most Gen Yers are tech-savvy, wired or wireless, so spaces for flat screens and other AV equipment will be a priority as they assess floor plans and flow and envision frequent social gatherings. And any opportunities for taking the party outside to a deck, patio or balcony will also be on the must-have list. Customizing and putting their own stamp on a home will be appealing and exciting. This generation, empowered and entertained by the home-makeover shows that flooded the airwaves during their youth, is looking forward to finally getting to decorate their own space…their way.

Part of being true to oneself for Gen Y equates to personal and social responsibility. They advocate for RE: reduce, reuse, recycle. For this group, a neighborhood of older homes or a fixer-upper may not only be tied to a way to get into the housing market for less but may also underscore their appreciation of the charm of a home with history. By not buying into a new cookie-cutter neighborhood, they may also feel that they are living their creed to recycle and reuse. Communities that make environmental efforts easier with curbside recycling or recycling centers nearby are attractive to this generation.

While the recession has hit Gen Y just as hard as other age groups, most of the younger set is poised to take advantage of falling home prices with the added benefit of not having to sell a home in order to buy. But you may have to adjust your tactics a bit in order to resonate with Gen Y. They are savvy and confident about everything from negotiating a fair purchase price to home decorating.

The upside of Gen Y? They may think that 70’s-style home with shag carpet and a sunken living room is retro and very cool!

Melissa Birdsong is vice president for Trend, Design & Brand, Lowe’s Companies, Inc.

For more information, visit www.lowes.com.

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RISMEDIA, December 29, 2009—Underscoring the continued weakness of the nation’s housing market, sales of newly built, single-family homes declined 11.3% in November 2009 to a seasonally adjusted annual rate of 355,000 units, according to figures recently released by the U.S. Commerce Department.

“These numbers are an indication of the continued fragility of the new-homes market amidst ongoing economic weakness,” noted Joe Robson, chairman of the National Association of Home Builders (NAHB) and a home builder from Tulsa, Okla. “They also show just how important it was that Congress moved when it did to help spur housing demand by extending and expanding the home buyer tax credit beyond its November deadline. We hope to start seeing the intended effects of that move on buyer demand in early 2010 as families determine their purchasing plans following the holidays.”

“While closings on existing homes got an expected push as the first-time buyer tax credit neared expiration at the end of November, contracts signed for new homes in November (which is what the government’s data denotes) will close months after the deadline,” explained NAHB Chief Economist David Crowe. “Meanwhile, effects of the newly expanded credit can be expected to take a couple of months to materialize, as we saw when the previous credit was enacted.

“As our builder surveys have indicated, the emerging housing recovery is on a bumpy path that is strewn with obstacles, including the extreme difficulties that builders are encountering in obtaining financing for new projects and inaccurate appraisals that are now scuttling a third of new-home sales. This report reinforces just how fragile the housing recovery remains and the potential damage that any further retardants could cause.”

Sales of new single-family homes declined in three out of four regions in November, with only the Midwest posting a gain, of 21.4%. Declines of 3.3%, 21.1%, and 9.2% were recorded in the Northeast, South and West, respectively.

Meanwhile, the number of newly built homes on the market continued to decline in November, falling 2.1% to 235,000 units. This marked a 7.9-month supply at the current sales pace.

For more information, visit www.nahb.org.

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