National Association of Realtors

Critical to boosting the economy is the need to stem the rising tide of foreclosures and boost homebuyer confidence in the housing market, the National Association of Realtors® told Members of Congress today. In a letter sent to Congress, NAR advocates prompt action by Congress and the current administration to pass a housing stimulus package to help stabilize the housing market, setting the stage for the U.S. economy to begin recovery.

“As home values continue to decrease in many markets and job losses escalate, homeowners needing to refinance their mortgage or sell their home are left with few options and are sometimes forced to walk away from their mortgage responsibilities,” said NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth. “This increased inventory further fuels decreases in home values exacerbating the housing and economic crisis, not to mention the crisis to many families and communities.”

NAR tells Congress that to stop the downward cycle a federal mortgage interest buy-down program is needed and should come from the Treasury Department’s Troubled Asset Relief Program. “The buy-down program would complement the loss mitigation elements of TARP and provide an incentive to buy homes, which will reduce the housing inventory. This in turn will stabilize home values, lessen foreclosure pressure, boost home sales activity and breathe new life into our nation’s economy,” said McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth.

Last month NAR shared suggestions for rebuilding the housing market with Congress and the administration, and encouraged the Treasury Department to incorporate parts of its Four-Point Plan for stimulating and stabilizing the housing market. “Housing has always led our economy out of downturns, and lower interest rates coupled with foreclosure mitigation are key ingredients to stabilizing the housing markets and preserving homes and communities,” McMillan said. CONTINUED »

National Association of Realtors

For the second year in a row, Realtors® report that exterior remodeling projects return the most money as a percentage of cost, as detailed in the 2008 Remodeling Cost vs. Value Report.

On a national level, wood deck additions and all types of siding replacements – upscale fiber cement, midrange vinyl, and upscale foam-backed vinyl – returned more than 80 percent of project costs upon resale. Of these, the most profitable project was upscale fiber cement siding, which recouped 86.7 percent of costs, followed by wood decks at 81.8 percent, midrange vinyl siding at 80.7 percent, and upscale foam-backed vinyl siding at 80.4 percent.

“Because today’s buyers have much more to choose from in the way of inventory, any home for sale must make a positive first impression,” said National Association of Realtors® President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth. “As a trusted source for real estate information, Realtors® understand what attracts and motivates their buyer clients, which is why the results of this year’s Cost vs. Value report underscore the importance of curb appeal in the buyer’s eye.”

The 2008 Remodeling Cost vs. Value Report compares construction costs with resale values for 30 midrange and upscale remodeling projects comprising additions, remodels and replacements in 79 markets across the country, expanding from 60 markets last year. Data are grouped into nine U.S. regions, following the divisions established by the U.S. Census Bureau. This is the 11th consecutive year that the report, which is produced by Hanley Wood, LLC, was completed in cooperation with REALTOR Magazine, as Realtors® provided their insight into local markets and buyer home preferences within those markets.

In addition to wood decks and siding, window replacements and kitchen remodels also returned a relatively high percentage of remodeling costs on a national basis. All types of window replacements – upscale and midrange wood and upscale and midscale vinyl – returned more than 76 percent of costs. A major midrange kitchen remodel returned 76.0 percent of project costs, while a minor midrange kitchen remodel returned 79.5 percent of costs. CONTINUED »

Declaring that this year’s annual “Turkey-A-Thon” sponsored by Troop Real Estate to provide Thanksgiving meals to Ventura County’s needy “is having far greater impact than ever before,” Troop Agent and Event Director Alex Gandel said company agents, affiliates and clients “stepped up huge” to help feed over 5000 people this year.
Commenting during Troop’s 10th Annual “Turkey-A-Thon” held on Nov. 24, Gandel said: “We knew going in this year that it was going to be difficult to raise money because our event began as real estate agent-driven program, and the charitable groups told us their pantries were bare. With economic conditions and the real estate industry experiencing difficulty, not only are the recipients having a tough time, but those who have traditionally given are hurting.
“Despite this, “ Gandel said, “our agents stepped up big time, along with the entire community, so that we were able to provide turkey dinners and all the trimmings for over 5000 needy individuals throughout Ventura County this year. We are having greater impact this year because of conditions, and folks are making things go further.”
He added that Troop has now fed over 50,000 people during the “Turkey-A-Thon’s decade-long tenure.
Working with Care & Share, the Moorpark Food Pantry, Food Share and the Boys and Girls Club, Troop distributed Thanksgiving meals at their Simi Valley, Moorpark, Ventura, and Santa Paula/Fillmore offices. Bob Harrison, western regional manager, said Troop’s Ventura office distributed enough meals for some 1800 of the 5000 people fed. The company’s Santa Paula/Fillmore offices distributed enough for 200 people of the total throughout the Santa Clara Valley via the Boys and Girls Club, according to manager Scott Dunbar.
Along with 12-14 pound Turkeys, young and elderly alike received five-pound bags of potatoes, stuffing, canned goods, including cream of mushroom soup, green beans, cranberry sauce, plus a bag of rolls.
“Watching the massive effort of our Troop people and witnessing the joy on the faces of young families and the elderly alike, many of whom walked with the aid of walkers, I’m proud to say I’m part of the Troop family,” Gandel said.
Gandel paid special praise to agent Dedree Hoyt, event coordinator, for “her ongoing tireless efforts down to the last detail to make this program succeed. Without Dedree it never would have happened this year.”
He concluded by stating, “It’s truly amazing how one little idea can grow over the years to assure that those facing some of their darkest hours are going to enjoy a holiday meal,” said Gandel, who expressed appreciation to Albertson’s and Von’s markets in Simi Valley and Ventura, respectively, for their support.
About Troop Real Estate, Inc.
Established in 1987, Troop Real Estate, Inc. is reportedly Ventura County’s largest brokerage and has perennially been a leader in the county’s residential market for the number and dollar volume of listings sold. The company, with approximately 650 seasoned sales professionals, provides the full range of residential, property management, REO, commercial, financial, new homes, escrow, estate homes and relocation services.
Troop offices are located in Simi Valley, Simi/Wood Ranch, Simi (Commercial), Thousand Oaks, Westlake Village, Moorpark, Camarillo, Channel Islands, Ventura, Santa Paula, Fillmore, Ojai and Bakersfield.

Realtors® feel strongly about giving back to their communities, volunteering countless hours to people and organizations that need a helping hand. The five individuals that the National Association of Realtors® has named as this year’s REALTOR® Magazine Good Neighbor Awards recipients embody this extraordinary commitment to improving the lives of those around them, from enhancing children’s access to education and health care to reducing homelessness and supporting breast cancer care.

The 2008 Good Neighbor Award winners are Lei Barry, Keller Williams Real Estate, Blue Bell, Pa., Inter-Faith Housing Alliance and Hope Gardens; Scott and Robin Gwaltney, Coldwell Banker at Your Service Realty Ltd., Rochester, Minn., Rochester Better Chance; Reita Hutson, John Hall and Associates, Scottsdale, Ariz., Gabriel’s Dream Inc.; Caroline McCartney, GSH Real Estate Corp., Norfolk, Va., St. Jude Children’s Research Hospital; and Sheila Stevens, Prudential Georgia Realty, Suwanee, Ga., The Sport of Giving Inc.

“Realtors® play an important leadership role in building strong communities,” said NAR President Dick Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif. “These five Good Neighbor Awards winners exemplify the compassion and commitment of thousands of other Realtors who volunteer in their communities and help so many others. I’m pleased to honor these exceptional professionals.”

The Good Neighbor Awards have been awarded annually since 2000 and are presented by NAR’s REALTOR® Magazine. Winners will receive a $10,000 grant for their charity and a $2,000 Lowe’s gift card, and will be profiled in the November issue of REALTOR® Magazine, www.realtor.org/realtormag. The five winners will also receive a crystal trophy and the right to use the Good Neighbor Awards logo on their Web site and in promotional materials. The recipients will be presented with their awards at the 2008 REALTORS® Conference & Expo in Orlando, Fla., in November; 25,000 Realtors and guests are expected to attend the conference. CONTINUED »

National Association of Realtors

Pending home sales activity surged as buyers took advantage of low home prices and affordable interest rates, according to the National Association of Realtors®.

The Pending Home Sales Index,1 a forward-looking indicator based on contracts signed in August, jumped 7.4 percent to 93.4 from an upwardly revised reading of 87.0 in July, and is 8.8 percent higher than August 2007 when it stood at 85.8. The index is at the highest level since June 2007 when it stood at 101.4.

Lawrence Yun, NAR chief economist, said home buyers were responding to improved affordability. “What we’re seeing is the momentum of people taking advantage of low home prices, with pending home sales up strongly in California, Nevada, Arizona, Florida, Rhode Island and the Washington, D.C., region,” he said. "It’s unclear how much contract activity may be impacted by the credit disruptions on Wall Street, but we’re hopeful most of the increase will translate into closed existing-home sales.”

The PHSI in the West surged 18.4 percent to 109.5 in August and remains 37.8 percent above a year ago. In the Northeast the index jumped 8.4 percent to 79.8 and is 2.0 percent higher than August 2007. The index in the Midwest rose 3.6 percent to 84.5 in August and is 6.6 percent above a year ago. In the South, the index increased 2.3 percent to 96.0 but is 2.1 percent below August 2007.

Yun notes the unusual timing of contract activity in August. “Home buyers in July were hampered by overly stringent lending criteria in the months before the government takeover of Fannie and Freddie,” he said. “August shows some unleashing of pent-up demand before the credit crisis accelerated in September.”

He cautioned that the sampling size for pending home sales is smaller than the track on existing-home sales, so there is more volatility in the forward-looking series. “We need to see just how much of this gain holds up,” Yun said. CONTINUED »

National Association of Realtors

The National Association of Realtors® was joined by Department of Housing and Urban Development Secretary Steve Preston today as NAR launched its new Federal Housing Administration Toolkit. Realtors® can use the toolkit to help buyers obtain safe and affordable FHA-backed mortgages.

“As the leading advocate for homeownership, NAR is pleased to have a long-established working relationship with HUD and FHA,” said Pat V. Combs, NAR immediate past president. “The new toolkit will help Realtors® educate consumers about FHA updates and changes and the great benefits of using these programs.”

FHA loans offer low downpayments, competitive interest rates, and greater flexibility than most conventional mortgages. In addition, the Housing and Economic Recovery Act of 2008 made increased FHA loan limits permanent, allowing more buyers in high-cost areas to obtain FHA-backed mortgages.

“FHA offers a safe alternative to many of the subprime and exotic loans that caused much of today’s market turmoil, and the program is easier to use than ever before,” Combs said. “Recent revisions to the FHA program will enable more families to achieve their dreams of homeownership, and will allow others to refinance their mortgage at terms that will allow them to keep their home.”

The FHA Toolkit includes a video of frequently asked questions, a flash media presentation of FHA programs, brochures and other reference guides and links to other useful resources. For more information about recent changes to FHA programs, visit the FHA Resources section of www.REALTOR.org.

Also in attendance at today’s presentation was Illinois Association of Realtors® President Pat Callan and NAR Region 7 Vice President John Veneris.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

National Association of Realtors

Existing-home sales were down in August following a healthy gain in July as tight mortgage credit curtailed activity, according to the National Association of Realtors®. Sales rose in the Midwest and South but fell in the Northeast and West.

Nationally, existing-home sales – including single-family, townhomes, condominiums and co-ops –declined 2.2 percent to a seasonally adjusted annual rate1 of 4.91 million units in August from an upwardly revised pace of 5.02 million in July, but are 10.7 percent below the 5.50 million-unit pace in August 2007.

NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said the pendulum in the mortgage market has swung too far. “The difficulty in obtaining a mortgage increased over past couple months, making it more challenging for creditworthy borrowers to find financing,” he said. “Our hope is that overly tight lending criteria can be loosened with reasonable standards and credit so that sales activity can catch up with demand. Interest rates have already declined, but there is a serious question as to whether a cash infusion by the U.S. Treasury into Wall Street would help consumers by improving mortgage funding.

“We urge Congress to restore access to sound mortgage credit so people have the ability to make and keep a long-term investment in the American dream of homeownership. Congress needs to take care of Main Street and not just bail out Wall Street.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 6.48 percent in August from 6.43 percent in July; the rate was 6.57 percent in August 2007. However, last week the 30-year fixed had dropped to 5.78 percent.

Lawrence Yun, NAR chief economist, said the recent drop in interest rates is an immediate impact of recent government action. “August sales reflect higher interest rates before the government takeover of Freddie Mac and Fannie Mae, and the sudden drop in mortgage interest rates over the past couple weeks is improving housing affordability,” he said. “With higher loan limits and a beefing up of the FHA program, all the mechanisms have been falling into place to increase mortgage availability. CONTINUED »