“AmeriDream continues to provide full support to H.R. 600, which will stabilize home values, protect taxpayers, encourage responsible homeownership, and create jobs,” said Ashburn. “These are four compelling reasons to make DPA an important part of our national economic recovery strategy.”

1. Stabilize home values. DPA can help stop the downward spiral in home values across the country by encouraging qualified homebuyers with FHA loans to enter the housing market. An estimated 300,000 homebuyers are eliminated from the housing market every year without DPA programs in place.

2. Protect taxpayers. H.R. 600 allows private partnerships between sellers and non-profits to provide downpayment gifts to qualified homebuyers at no cost to the taxpayer. That makes H.R. 600 a fiscally responsible alternative to government-subsidized downpayment assistance programs being considered by the U.S. Department of Housing & Urban Development.

3. Encourage responsible homeownership. H.R. 600 will enable 300,000 additional families and individuals- all qualified and approved for FHA loans- to become homeowners each year. The bill also requires that DPA recipients be offered homebuyer education courses to help them understand the financial responsibilities of homeownership. Lastly, H.R. 600 implements tougher credit requirements for DPA recipients, strict FHA underwriting guidelines, and stiff penalties for improper home appraisals.

4. Create jobs. DPA will create 235,000 jobs, generate over $4 billion annually in local and state revenues, and provide $2 billion annually in private capital for sustainable homeownership. DPA’s absence prompts fewer home sales, lower home values, more foreclosures, job losses, and lower revenues for cash-strapped local governments. H.R. 600 is a vital mechanism to stabilizing the U.S. housing market.

For more information, visit www.ameridream.org.

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• Public Information vs. Private Information – Where to Draw the Line in an Online World
  Rethinking Remodeling: Homeowners Want More Bang for Their Home-Improvement Buck

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Educational Opportunities from NAR’s REALTOR Benefits® Program

NAR understands that education is a key component for REALTORS® looking to differentiate themselves in the marketplace. To help you achieve your goals, the REALTOR Benefits® Program includes special pricing on certain real estate focused certifications and designations. For a current listing of educational offerings, click here.

REALTORS® Advocate Quick Implementation of Stimulus Package

Now that the American Recovery and Reinvestment Act has been sent to President Obama for his signature, the NATIONAL ASSOCIATON OF REALOTRS® is looking forward to swift implementation.

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Like the failed efforts under the Bush administration, however, Obama’s $275 billion plan-announced Wednesday-doesn’t compel banks and other lenders to modify troubled mortgages. Instead, it provides a menu of incentives that may or may not prove sufficient in reaching the goal of helping 9 million homeowners.

“It’s a bold plan, and that’s encouraging. But at this moment, we don’t have enough detail, and unfortunately with the foreclosure mitigation plans, the devil is in the details,” said Elizabeth Warren, a Harvard University law professor who heads the Congressional Oversight Panel charged with monitoring use of taxpayer bailout funds. “There have been big headlines in the past, and the details never caught up with the early promises.”

The Homeowner Stability Initiative, unveiled in a rowdy high school gym in Phoenix, seeks to address one of the triggers of the global financial crisis: the 2.3 million U.S. foreclosures last year that are protracting the housing crisis and helping to drive down home prices across the nation.

“When the housing market collapsed, so did the availability of credit on which our economy depends. As that credit dried up, it has been harder for families to find affordable loans,” Obama said. “In the end, all of us are paying a price for this home mortgage crisis. And all of us will pay an even steeper price if we allow this crisis to deepen-a crisis which is unraveling homeownership, the middle class, and the American Dream itself.”

His plan has three major components.

First, it seeks to provide low-cost refinancing for as many as 5 million Americans who aren’t behind on mortgage payments, at least not yet. If a bank agrees to issue lower-interest loans to homeowners who are current on payments, the loans could be sold to Fannie Mae and Freddie Mac, which were seized by the government in September.

The idea here is to allow access to refinancing for homeowners who don’t have much equity in their homes, or owe up to 5% more than what their homes are worth. These borrowers can’t qualify for refinancing under Fannie’s and Freddie’s current rules, and the change could result in savings on mortgage payments up to $2,300 a year. For lenders, it also would generate a new stream of revenue from refinancing charges and help put a floor under declining home prices.

A second leg of the plan makes another $200 billion available for mortgage finance. The Obama plan doubles earlier $100 billion agreements with Fannie and Freddie to provide a government subsidy to purchase mortgages from banks and other lenders.

The third and trickiest leg of the Obama plan involves using $75 billion in Wall Street rescue funds for a shared effort to help as many as 4 million distressed borrowers who are behind on their payments or facing foreclosure. Obama wants lenders to lower interest rates and extend the length of loans to make monthly mortgage payments no more than 38% of borrowers’ after-tax income.

Then, the government will step in and split the cost, dollar for dollar, to buy down those monthly payments until they account for no more than 31% of borrowers’ after-tax income.

Obama committed to publishing standardized guidelines for mortgage modifications and additional detail by March 4-an aggressive timetable.

“This sounds good but I’d have to see more,” said Harlan Platt, a finance professor at Northeastern University in Boston. Platt has proposed an even more ambitious plan that would involve more aggressive write downs for banks in exchange for a greater percentage of gains when home prices rebound.

The third leg of Obama’s plan wouldn’t be a permanent fix, but a five-year subsidy designed to stem the rising tide of foreclosures.

“It recognizes that we’ve got to stop foreclosures, not just for families about to lose their home but anybody who owns a home” and is seeing home price declines, said Ellen Harnick, the senior policy counsel for the Center for Responsible Lending, an advocacy group in Durham, N.C.

Consumer advocates applauded Obama’s plan. The response from lenders-which would receive $1,000 payments to refinance mortgages, a $10 billion insurance program and other financial incentives-was lukewarm at best. Republicans sided with banks.

“Among the concerns we have is that it seems to offer little help to borrowers whose loan exceeds their property value by more than 5%. This will limit the plan’s success in some of the hardest-hit areas in California, Florida, Nevada and Arizona, as well as some areas on the East Coast,” said John Courson, the president of the Mortgage Bankers Association, in a statement.

Obama’s answer to that complaint riles lenders. If lenders aren’t willing to write down some of those so-called underwater mortgages, he said Wednesday, bankruptcy courts may soon be able to do so. This is called a mortgage cram-down. Obama supported congressional efforts to authorize bankruptcy judges to write off the difference between what a borrower owes and the home’s value.

“Mortgage cram-down is clearly a stick forcing investors to recognize their losses on bad mortgages. I think it’s a critical component,” said Warren, the Harvard professor. “By itself it won’t solve the housing crisis, but it is a critical component.”

Banks maintain that this will raise the cost of borrowing for homeowners, and the House Republican leader, Rep. John Boehner of Ohio, echoed that view on Wednesday.

“Should a responsible plan include a ‘cram-down’ provision that could increase the monthly mortgage payments for responsible borrowers?” he asked in a statement.

© 2009, McClatchy-Tribune Information Services.

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Related headlines on addressing the Foreclosure Crisis:

Obama Unveils Plan to Stem Foreclosures
Reader Commentary: Bring Back Lending to the Jumbo Loan Market

Mt. Maria is situated on the West Branch River and Hubbard Lake, just minutes away from the 10,000+ acre “Lost Lake of the Woods” hunting preserve and the 18-hole White Pine National Golf Course. These building sites have lake or river views, and the land is rich in American Indian history. And Northern Michigan abounds with year-round outdoor sport, water and nature activities for every age and lifestyle.

Mt. Maria was a former ski resort, and the slopes are still a thrill to ski.
The original ski lodge was renovated to an elegantly rustic, casual dining restaurant, with a fully equipped kitchen, seating and more. The restaurant is turn-key – ready to re-open its doors, or host banquets and group events.

With the highest topography in eastern Michigan, Mt. Maria is truly an undiscovered gem. Its proximity to Detroit and Ann Arbor as a get-away destination offer a rare opportunity for developers to create a year-round custom home or site condo development, or weekend cabin retreat for the urban-weary seeking nature’s serenity.

For more information, visit http://www.MtMaria.com.

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A Unique Floating Condo Development
The Future of Technology at Your Fingertips
Luxury Property Becomes New Home for Renowned Chef

According to the Association, C.A.R.’s First Time Buyer Housing Affordability Index (FTB-HAI) measures the percentage of households that can afford to purchase an entry-level home in California. C.A.R. also reports first-time buyer indexes for regions and select counties within the state. The Index is the most fundamental measure of housing well-being for first-time buyers in the state.

The minimum household income needed to purchase an entry-level home at $248,030 in California in the fourth quarter of 2008 was $48,900, based on an adjustable interest rate of 6.02% and assuming a 10% down payment. First-time buyers typically purchase a home equal to 85% of the prevailing median price. The monthly payment including taxes and insurance was $1,630 for the fourth quarter of 2008.

At $48,900, the minimum qualifying income was 42% lower than a year earlier when households needed $83,700 to qualify for a loan on an entry-level hold. Recent decreases in home prices and mortgage rates have brought affordability into better alignment with income levels of the typical California households, where the median household income is $59,160.

At 76%, the High Desert region was the most affordable area in the state. The San Luis Obispo County region was the least affordable in the state at 44%, followed by the Los Angeles County region at 46%.

The First-Time Buyer Housing Affordability Index also rose 6 percentage points in the fourth quarter of this year compared with the third quarter of 2008, due to a 14.1% decrease in the entry-level median home price.

For more information, visit www.car.org.

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Read more real estate headlines on RISMedia.com, see:

Obama Unveils Plan to Stem Foreclosures
Mortgage Applications Increase in Latest MBA Weekly Survey

Ken Middleton of Coldwell Banker Middleton & Associates says the same housing challenges that have been apparent since the takeover of Fannie Mae/Freddie Mac by the federal government are also being dealt with by those who rent.

“The layoffs, less hours and cutbacks in pay are affecting tenants’ ability to pay rent,” Middleton said. “We are seeing some challenges there and the number of evictions will go up as well.

“Even though it ebbs and flows, there is always a great demand for rentals, which have always been fairly steady here.”

“We do not have a large number of large apartment complexes in this area,” he said. “We still have fewer rental units than we need. Locally, the newest development trend is not for traditional apartment complexes but for quads, or four-plexes, that can be concentrated in a smaller area. The occupancy rates here are consistently high.”

According to the most recent U.S. Census housing statistics, there are 8,689 rental units in Orangeburg County. Calhoun County has an estimated 1,038 available units while Bamberg County checks in with 1,548 renter-occupied units.

Jeannine Kees, Century 21 The Moore Group vice president and broker-in-charge, says when people rent more during a soft economy, the result is fewer available rental units.

“Sales of houses are off approximately 40 percent in this market,” Kees said. “That is also forcing more people to seriously consider renting. We have quite a few homes that people want to put up for lease now simply because they can’t sell the homes.

“It seems to me that Orangeburg has been a good market for rentals and the demand is growing, especially since this is a university town. Despite some challenges the economy is presenting, we still have reason for optimism due to the steady industrial growth, like Jafza, we’re seeing in the area.”

The Moore Company Rentals Property Manager Allison Strider, who also oversees properties in Bamberg and Calhoun counties, says people are not moving as much because of concerns over the economy and jobs.

“There is a busy and slow season to residential rental property, too,” Strider said. “However, last year at this time we had about three or four fewer properties to manage than we do now. We have grown and added homes to our rental portfolio but the credit issues that are causing people problems with buying a house are also causing some problems in renting.

“In order to rent, people still have to meet certain credit guidelines and have an adequate credit score. The product we can offer also differs from time to time depending on our inventory and demand, too.”

Ben Davis, owner of Carolina Appraisal Group, says that there is not a lot of new rental development on the horizon at the present time.

“I’m in the process of building 40 rental units with a partner, but there is little other major development along those lines that I can determine,” Davis said. “Building in the rental market is sort of reflecting the lack of credit that’s available.

“The local rental market is now gravitating to homes that are being leased by the owners. It’s having a domino effect with the prices of standard apartments and other rental units either decreasing slightly or stagnating.”

N&H Enterprises Regional Manager Denise Holley says the demand for upscale or luxury apartments in Orangeburg has been steadily increasing at the company’s Willington Lakes Apartment Homes complex since it opened in May 2002.

“Phase II construction on 96 new units will begin soon,” Holley said. “It is anticipated that building will be finished on these two-bedroom, two-bath apartments this summer, bringing the total number to 216 apartments. This phase will also include some one-bedroom units.

“The upward trend is exciting for us. The marketing study initially showed the need for two- and three-bedroom apartments, but after listening to prospective renters and additional research we realized there is a market here for one-bedroom apartments.”

Copyright © 2009, The Times and Democrat, Orangeburg, S.C.
Distributed by McClatchy-Tribune Information Services.

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Don’t miss other real estate hot topics on RISMedia.com, see:

Want to Get Your House to Sell? Try Making an Offer
Tips for Packing for a Move, Inexpensively
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But lately, the march has been played to a smaller audience. McCauley’s courses have had about five students, unlike the 20 to 30 he had just a few years ago.

“We’re competitively priced, but it’s the same all around,” he said.

McCauley, co-owner and teacher at Independent Career Institute in Maryland Heights, isn’t all that surprised that his real estate classes are shrinking. He has always seen more students in boom times and fewer in a slow real estate market. But the dip has never been this bad. Since mid-2007, McCauley has had to lay off the three teachers he employed.

Mark Barker, chief executive of Career Education Systems, has seen the same trend in real estate classes at the company’s three locations in St. Louis, Kansas City and Wichita, Kan. He said demand for the school’s classes usually followed peaks and valleys in real estate sales with about six months of lag time.

Slow house sales also have chased some professionals away from the real estate industry, said Paul Bishop, managing director of research at the National Association of Realtors, the trade group that represents a large number of professional real estate agents.

Nationally, membership in the association was down about 11% in January from a year ago, according to data from the association. Missouri’s membership is down about 12%, while Illinois’ membership fell about 11%.

Experts say Realtor membership is a good measure of the industry because a significant portion of career real estate professionals are Realtors, even though membership is not a requirement for a license to sell property.

This decade, the number of Realtors grew every year except in 2007 and 2008. In the same years, the number of existing house sales declined, the association said.

Several industry veterans say most people leaving the profession are those who jumped into real estate when the market was hot in 2005. Many who leave the profession simply can’t withstand the slow sales many rookie agents experience, Bishop said. Statistics he gathered show that although the median income for Realtors in 2008 was about $42,600, those with two years of experience or fewer earned about $10,500. Meanwhile, Realtors with three to five years’ experience earned about $34,600.

David Funk, director of the real estate program at Cornell University, says most people understand the ups and downs of real estate and are making adjustments with their lives. He said many professionals were taking this time to get advance degrees in real estate in hopes of returning to the profession when the economy improves. Funk said Cornell had had an increase in applicants to the school’s two-year master’s degree real estate program in the past two years.

With experienced agents leaving the field, teachers such as McCauley say now may be the best time for brokerages to develop inexperienced agents.

Because most students are sent to schools by their future brokers, McCauley and other school directors are pushing the benefits of training in a slow market.
“It’s time to start recruiting so that when it turns around, these people who are hustling to get money are going to do really well,” he said. “The ones who start when things get better, they’re going to be behind schedule.”

Barker agreed, saying it takes most agents four to six months of startup time before they get any momentum.

“The interesting thing about it is, over the last 45 days, we’ve seen the brokers ramping up their recruiting efforts,” he said. “Most believe they are fairly close to the bottom of the cycle. You don’t wait until the market comes back before you start gearing up, because then you miss the opportunity for those new agents to make sales.”

As brokerages begin looking for new blood, they may benefit from the current number of available workers. Carole McCabe, regional vice president of Coldwell Banker Gundaker, says she believes the current economy is producing a pool of highly skilled workers who, she hopes, will consider careers in real estate because it takes relatively little schooling and money to get started.

Antione Crain is among those who have recently chosen to try their hands at real estate.

Crain, 26, of Hazelwood, graduated from McCauley’s school in January. Crain has been working as an independent contractor for the past four years, leading marketing and promotional tours for various companies.

Crain plans to sell real estate part time for now, but he says he may do it full time if sales heat up. He said this was the right time to join the profession.

“I just have an understanding of how cyclical the business is,” he said. “It’s best to get in when it’s down, because it’s eventually going to turn around.”

If things don’t turn around soon, though, Crain may be joined by his former teacher. McCauley said if his class sizes didn’t improve, he wouldn’t be able to afford the school’s office space — and it’s back to life as a real estate agent. “It’s an emotional thing,” he said. “I created this beast, and I’m hanging on for dear life. I want to keep it as long as I can and as long as it’s cost effective.”

Copyright © 2009, St. Louis Post-Dispatch
Distributed by McClatchy-Tribune Information Services.

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Are Lower Mortgage Rates Working? For Some, Yes; for Others, No
Will the Stimulus Benefit Homeowners and Buyers?

“I am frustrated at the futile attempts this proposed stimulus package is taking toward jump starting the housing market. The firm I run is “A” paper super jumbo loans to borrowers who are six- to seven-figure incomes and typically small business owners. I have found it increasingly difficult to get these excellent borrowers loans. In December I submitted 22 loans equaling $30 million, all excellent borrowers, but to my dismay only one borrower was approved. These are the borrowers that are entrepreneurs who create jobs and stimulate spending and I simply cannot get a deal approved. Lenders have all but cut out the wholesale broker, who represents 70% of loan origination nationwide.

What the government is failing to acknowledge is that the federal regulators have restricted lending guidelines to the point of total suffocation. The lenders simply are not allowed to lend because of the federal restrictions and ridiculous underwriting standards imposed by the government. Why doesn’t anyone talk about this issue? This is the heart of the problem. This is what I hear from every lender I deal with.

In the meantime they keep stimulating the conforming market for low income buyers. Where is the sense in this? These are the people who cannot afford homes. A proposed $15,000 tax credit for first-time buyers?* What about tax credits for existing home owners struggling to survive? At the core of the sub-prime crisis are borrowers who put little to no money down on their homes when they purchased. Please tell me why FHA still promotes these loans. Borrowers who have their own money invested are less likely to walk away and I see it time and time again. And why do conforming loans still allow low credit scores?

I have been in this business for 25 years and am continually perplexed by the lack of understanding of the mortgage industry . It’s simple: If lending does not return to the jumbo market, the market will not recover.

Rains is the owner of Capital Financial Advisors Mortgage in Los Angeles. Contact her at (310) 444-7191 ext 126 or Rosie@thinkCFA.com. To learn more visit www.thinkcfa.com or www.rosierains.com.

*The $15,000 tax credit to home buyers was reduced in the revised stimulus bill. The approved version, signed into law by President Obama Tuesday allows for an $8,000 tax credit to first-time home buyers.

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The Refinance Index increased 64.3% to 4472.9 from 2722.7 the previous week and the seasonally adjusted Purchase Index increased 9.1% to 257.3 from 235.9 one week earlier. The Conventional Purchase Index increased 10.9% while the Government Purchase Index (largely FHA) increased 5.5%.

The four week moving average for the seasonally adjusted Market Index is down 9.6%. The four week moving average is down 4.2% for the seasonally adjusted Purchase Index, while this average is down 12.2% for the Refinance Index.

The refinance share of mortgage activity increased to 74.2% of total applications from 66.7% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 1.7% from 2.5% of total applications from the previous week.

The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.99% from 5.19%, with points increasing to 1.37 from 1.20 (including the origination fee) for 80% loan-to-value (LTV) ratio loans.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 4.66% from 5.00%, with points increasing to 1.22 from 1.21 (including the origination fee) for 80% LTV loans.

The average contract interest rate for one-year ARMs decreased to 6.10% from 6.22%, with points increasing to 0.23 from 0.22 (including the origination fee) for 80% LTV loans.

The survey covers approximately 50% of all U.S. retail residential mortgage applications, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts. Base period and value for all indexes is March 16, 1990=100.

For more information, visit www.mortgagebankers.org.

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Related headlines on RISMedia.com:

Will the Stimulus Benefit Homeowners and Buyers?
How Long Does a Loan Modification Take?
Foreclosure Activity Decreases 10 Percent in January

The provisions of the bill expected to boost the North Texas housing market include:

- Increasing the first-time home buyer tax credit to $8,000 and eliminating the repayment requirement
- Extending the credit availability until December 1, 2009
- The creation of approximately 286,000 jobs throughout Texas

“The provisions in the economic stimulus legislation offer powerful incentives for home buyers to participate in the economic recovery,” said Howard Zielke, president of dfwREALTORS®. “Job creation and tax cuts are going to help families recover and prosper, and the tax credit will bring first-time home buyers to the market.”

The National Association of Realtors® estimates that the home buyer tax provisions could fuel up to 300,000 additional home sales, thereby helping stabilize home values and creating better opportunities for sellers to sell their home and avoid foreclosure.

The bill also:

- Allocates resources for neighborhood stabilization efforts to help communities purchase and rehab foreclosed and vacant properties
- Reinstates the 2008 higher loan limits for FHA, Fannie Mae and Freddie Mac, designed to help reduce housing inventory and improve liquidity in the overall mortgage market

“The neighborhood stabilization efforts will protect North Texas neighborhoods adversely affected by high foreclosures and preserve home values from further decline during the economic recovery,” said Zielke.

“Our job at dfwREALTORS is to educate our member Realtors on all legislation and market trends that effect the North Texas housing market,” said Rich Thomas, chief executive officer of dfwREALTORS. “Home buyers and sellers can turn to Realtors for trustworthy information and reliable advice on the economic reality in North Texas.”

For more information, visit www.dfwrealtors.com.

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

Related real estate headlines on RISMedia.com:

Will the Stimulus Benefit Homeowners and Buyers?
Are Lower Mortgage Rates Working? For Some, Yes; for Others, No

“I spent several days in Texas this month and can confirm that the pick-up is real and is driven by lower mortgage rates in an area where home price appreciation was insignificant and the economy is still o.k.,” said John Burns, CEO of Irvine, Calif.-based John Burns Real Estate Consulting.

“We caution overreacting because new home prices are still trending down everywhere, including Texas,” said Burns. “We look forward to calling a bottom in home price declines, but we are definitely not there – in any region of the country. An index of 9 is on par with November and December, the second worst number since the index began in 1985.”

Survey Highlights:

- Sales and Traffic Up Slightly: Nationally, the builders’ rating of current sales improved slightly for the second consecutive month, while traffic moved to Low from Very Low. The rating of expected sales again improved slightly. Average net sales per community increased to 1.4 this month nationally, from 1.0 last month.
- Low mortgage rates and a healthy Texas economy are the reason. Our contacts are reporting increasing improvements in traffic and a slight uptick in sales, though this is very submarket and product specific. The increases were most pronounced in Texas, which we confirmed by visiting with several Texas builders last week. Starting only one home per community. Starts per community averaged 1 unit nationally last month, but 40% of our survey participants reported zero starts. Interestingly, 14% indicated they were starting 3 or more units this month, up from 9% last month.
- Cancellation rates declining: Most builders reported can rates between 16% and 30%.
- Pricing decreases in many regions: Home prices net of incentives continue to decline monthly, as excess supply, and competition from foreclosures priced below the cost to build, destabilizes pricing.•
- Inventory declining: Unsold, finished inventory shifts minimally within regions and several show decreases. Communities have 4.7 units of standing inventory on average. Most notably, the Southwest and South Florida dropped 2 and 3 units per community respectively.

For more information visit: www.realestateconsulting.com.

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With education as the key focus, the conference will feature a range of continuing education programs and panel discussions. Among the impressive list of educational sessions offered is The Real Estate Economy: What’s in Store for 2008? Highlighting how emerging economic and demographic trends will drive real property values in the next 18 months, this program explores the forces influencing buyers and sellers in today’s marketplace. The knowledge gained during this session will enable appraisers to track the real estate economy on an ongoing basis, which in turn will allow them to provide superior service to their clients.

Other featured educational sessions include:
- A Professional’s Guide for Conservation Easement Appraisals
- Real Estate Investing & Development: A Valuation Perspective
- The Client Perspective on the Appraisal Profession
- Rates & Ratios: Making Sense of GIMs, OARs and DCF
- Making Sense of the Changing Landscape of Valuation: Cool Tools – Cool
Trends.

Attendees can obtain up to 30 hours of Appraisal Institute continuing education credit and may be eligible to receive state credit as well.

The conference will include exhibits from leading companies that provide cutting-edge information and technology to the real estate appraisal profession as well as social events, such as a golf tournament at the Las Vegas Country Club, the oldest private country club in the Las Vegas Valley. In addition, to celebrate the Appraisal Institute’s 75th anniversary, a reception and three-course semiformal dinner has been planned, which will include an open bar, entertainment and dancing.

For more information, visit http://www.appraisalinstitute.org/conf/ai75.asp.

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

“Baltimore City is going through a great period of rebirth. I felt that it would be a golden opportunity to increase my business. Canton, Fells Point, Federal Hill and other areas in the City are seeing tremendous growth and I wanted to be involved in that expansion. The timing was right for a full-service discount Realtor to open shop in Canton.”

Strategically planning for success, Saunders says that they will maintain the latest technology to beat the competition and improve sales.

“Over the 25 plus years I’ve been in real estate, I have learned that diversification is the best marketing plan anyone can have. I analyze our marketing plan quarterly to ensure that we are using effective tools to stay competitive with the rapidly changing market. It’s my goal to make sure my agents and their clients have the best home buying experience. Advance Realty will have the latest technology to stay on top.”

For more information, visit www.AdvanceRealtyUSA.com.

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The red carpet award show will spotlight the best in Nevada Real Estate from attached and detached homes to high-rise residential and commercial buildings and homes with mountain views to most inspiring designs and best mortgage broker. A portion of the proceeds from the event will go to the Nevada chapter of Habitat for Humanity.

The “Best of Nevada Real Estate Awards” will be held Saturday, Aug. 11, 2007, at the World Market Center in Las Vegas.

Las Vegas Mayor Oscar Goodman will present three honorary awards including “Innovator of the Year” to Donald Trump, the “Lifetime Achievement Award” to Irene Vogel, executive vice president of the Greater Las Vegas Association of REALTORS(R) (GLVAR), and Richard Lee, vice president of First American Title Company, will be awarded “Visionary of the Year.”

The Best of Nevada Real Estate Awards has announced more than 180 nominees in 47 categories for the awards. The nominees and special awards were selected by the event’s association sponsors: American Society of Interior Designers, Las Vegas Chamber of Commerce, Latin Chamber of Commerce, Nevada Association of Hispanic Real estate professionals, Southern Nevada Home Builders Association, and Women’s Chamber of Commerce and sponsored by Greater Las Vegas Association of REALTORS(R).

Please visit http://www.realestateexpo.us for a complete list of the nominees as tabulated by the event’s official certified public accounting firm of Kyle Tingle, CPA.

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David G. McKey, GRI, ABR, broker/president and current president of the Greater Baton Rouge Association of Realtors; Andrea Phelps McKey, GRI, and current president of the Louisiana Realtors Association together with H.N. “Hank” Saurage IV, CCIM, RECS, broker/president Saurage Realtors unveiled the plan to become one company in a meeting at Baton Rouge Country Club before 120 consultants from both firms, the company reported.

“The combination of assets together with the talented consultants makes the new Coldwell Banker One the premier real estate firm in the Baton Rouge area,” said David G. McKey, Broker and President of Coldwell Banker One.

McKey commented, “We are so proud to be able to offer our clients this dynamic team of consultants, the combined portfolio of listings and professional expertise together with the products, services and corporate support Coldwell Banker delivers. Expect great things from this fantastic group of professionals.”

“Coldwell Banker One will continue to attract top professionals in the real estate community and the synergy between our two companies continues our commitment to offer the best and set the standard for others to follow,” said H.N. “Hank” Saurage IV, CCIM, RECS, and broker.

Representatives from Coldwell Banker Real Estate Group including Frank Lindsey, regional director and senior vice-president and Senior Business Consultant, Debbie Ashbrook were on hand for the announcement. Named by Franchise Times as the top real estate franchise in the country, Coldwell Banker Real Estate Group provides an array of products and services unmatched in the real estate industry to its over 4,000 affiliates nationwide.

Speaking on behalf of the Louisiana Realtors Malcolm Young, CEO said, “I am so proud to be a part of this important announcement of this significant change in real estate in the Baton Rouge area. I have had the privilege of working closely with both firms and understand the foundations each company has built.”

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“We are pleased to welcome Obēo to our family of Leading Real Estate Solutions products,” commented LeadingRE’s Vice President Phil Edwards. “Obēo’s expertise in full-service immersive online content and home tours is unsurpassed and will undoubtedly support LeadingRE’s goal to make superior products that help our affiliates maintain and accelerate their market leadership.”

LeadingRE is a global network of nearly 700 independent real estate firms with 5,000 offices and 145,000 sales associates in the U.S. and 35 other countries. Collectively, these firms sell 1.3 million homes annually in the U.S. valued at over $400 billion.

“LeadingRE has illustrated exceptional service through its list of elite brokers around the globe who prove time and again that they know how to deliver high-caliber services to the marketplace,” said Glade Jones, CEO of Obēo. “We are excited about the possibilities we will both create as we move forward into the future of marketing real estate together.”

“LeadingRE’s numbers speak for themselves,” said Jones. “It’s evident that as consumers ask for more content online, LeadingRE stays on target with the future of real estate by giving them what they want. LeadingRE understands technology and marketing, and they know how to ensure the longevity of an incredible brand.”

For more information, visit www.obeo.com and www.LeadingRE.com.

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In recent years, Internet video services have become a mainstream phenomenon in the United States. Content from dozens of TV networks and major film studios is now routinely offered online. Nothnagle.TV capitalizes on this trend, the company says, by taking content that is in demand by real estate consumers and making it available on demand via the Internet.

Armand D’Alfonso, chief executive officer of Nothnagle Realtors, commented, “We are pleased to be the first real estate brokerage in the nation to enable our agents and sellers to leverage this innovative new media format to increase exposure for all of their listings on the Internet, around the clock – and on-demand. We think of Nothnagle.TV as a full blown, locally produced, interactive TV channel delivered free of charge over the Web to anyone with an Internet connection.”

According to the company, Nothnagle Realtors has successfully used the power of both television and the Internet for years to market properties. Nothnagle’s “Sunday Showcase of Homes” television program (which airs Sunday mornings at 10:30 AM on WROC, Channel 8 ) is consistently the top rated program in its time period, and Nothnagle.com is consistently one of the area’s most trafficked real estate Web sites, according to the Realtors.

According to D’Alfonso, “Nothnagle.TV takes the best aspects of television and the Internet and marries them together, offering viewers a unique, TV-like experience enhanced with choice, control and flexibility. Nothnagle.TV is an unparalleled interactive experience that local real estate consumers will love.”

To watch Nothnagle.TV, simply go to http://www.nothnagle.tv. Programs are conveniently organized by county and area. Nothnagle.TV programs are also being posted to Google Video to gain additional exposure. From Google Video, Nothnagle.TV programs may be downloaded for viewing offline on a home computer (Windows or Mac), video iPod or Sony PSP. Programs can be e-mailed to a friend or posted to a blog. Nothnagle has even created a podcast for iTunes. Consumers can subscribe for free and synchronize town videos to their iPods to watch them on the go.

For more information, visit www.nothnagle.tv.

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Because the majority of Sonora’s foreign real estate investors are from Arizona, state regulators applauded the new law, which was unveiled at the Arizona-Mexico Commission meeting Thursday.

Investing in Mexico is safe, officials insisted, but while safeguards are in place, it’s up to buyers to exercise common sense.

Kevin W. Hardin, chief executive officer of Phoenix-based International Mortgage & Investment Group, said investors run into problems after “leaving their brains at the border.”

“Americans get to the border and someone on the beach shows them a beautiful condo and asks for a cash deposit now,” he said. “You wouldn’t do that in the U.S. Why would you do that in Mexico?”

Government officials in Sonora, meanwhile, are legislating and regulating those who peddle to their greatest investors: foreigners.

Last year, more than $550 million in foreign investment poured into Sonora. The state ranks third out of 31 states and Mexico City for foreign investment.

“It’s not in our interest for investors to have problems,” said Epifanio Salido Pavlovich, director of the Sonora Office of Tourism

On heels of investor dispute

In 2001, Tucson couple Eva and Francisco Durazo paid $8,500 for the right to use a Puerto Penasco condominium 10 days a year for 10 years. They pay an additional $80 a year for maintenance.

Their last visit to the Fiesta de Cortez development was in April 2006, and for the past two months they have been trying to contact the hotel operators to plan their next trip.

“It was our dream to go up there and spend the summers,” Eva Durazo said. “We feel like we’ve been taken.”

Last month, the Arizona Department of Real Estate issued a “cease and desist” order against the condominium developer following complaints from nearly a dozen investors that developers took deposits or advances totaling $378,318 for property never turned over to the consumers.

Because the company advertised in the state and finalized contracts in Tucson and Scottsdale, Arizona regulators were able to exercise jurisdiction, said Mary Utley, a department assistant commissioner.

The owner of Fiesta de Cortez Hotel Urbanizadora Vacacional de Puerto Penasco, Ignacio Chavez Moran, did not attend the commission meeting, but his attorney vowed to resolve the dispute at a meeting set next Saturday.

“We are going to analyze the contracts and come to an agreement between the parties,” attorney Gilberto Pena said. “We consider this situation to be resolved.”

The 100-plus-room hotel has 13 condo owner and numerous time share owners. The rest of the units are rented out as hotel rooms.

Pena said the majority of investors are from Arizona.

Binational resolution

Rafael Rochin of the Sonora Office of Tourism told commission members that his office intervened on behalf of the investors and said the company will resolve the dispute, up to and including reimbursement of investors’ down payments.

“This is a good-faith public gesture,” he said. “We are two distinct countries, but with shared concerns so we look for solutions together.”

Fiesta de Cortez representatives will meet with the Arizona Department of Real Estate Wednesday, said Commissioner Sam Wercinski.

After he addressed commission members and met with Pena, Tucsonan Francisco Durazo said he was hopeful that he would once again enjoy a Puerto Penasco vacation.

Investor Le Bertha Umbreit, a Phoenix attorney, thinks Chavez is sincere and plans to attend the Saturday meeting in Puerto Penasco, she told commission members.

“I believe he will honor the contracts and I believe he’s trying to come to an amicable resolution,” she said.

Regulations and legislation

When Sonora’s new licensing law is implemented — likely this fall — people selling real estate without a license could face fines of up to $5,000, Rodolfo Elias Calles, special projects manager with the Sonora Secretary of Economy’s office, told commission members.

Aside from background checks, agents will be required to undergo training in real estate law and regulations, he said.

“Sonora is trying to be on the cutting edge,” Elias said. “Although I’m sure somebody who’s had a bad experience is going to contradict me on that.”

Ultimately, investors must protect themselves.

Hardin said people should seek the advice of an attorney and consider a U.S. lender, who then assumes part of the risk.

“The bulk of the risk for most buyers is removed when you bring in a lender,” he said. U.S. banks also offer better interest rates to U.S. citizens.

Puerto Penasco broker Rick Ramirez, owner of Century 21 Sun & Sand, said problems arise when investors don’t apply the same logic to real estate transactions in Mexico as they do in the United States.

For example, Ramirez said, people should not buy property and sign paperwork that is in Spanish if they can’t ready Spanish.

“It’s all common sense.”

Fast Facts

–Sonoran officials expect tourism to increase 10% by 2009 to 9.6 million people – 70% from Arizona.
–Today, Sonora has around 5,000 housing units built or under construction primarily for sale to foreign investors.
–Officials expect that to grow to 40,000 units in the next 20 years.
–55% of the state’s new construction is in Puerto Penasco.

Source: Sonora Office of Tourism

How to protect yourself

In Mexico’s restricted zone — within 60 miles of the international border or 30 miles of a coastline — foreigners may obtain all the rights of ownership but formal ownership must be in a bank trust, known as fideicomiso.
To make a property purchase, the buyer requests that a Mexican bank act as a trustee. The bank obtains a permit from the Ministry of Foreign Affairs to acquire the chosen property in trust.

The bank becomes the legal owner of the property for the exclusive use of the buyer, who has all the benefits of a direct owner, including the right to lease or transfer the property to a third party or heir.

The only national professional real estate organization in Mexico is the Asociacion Mexicana de Profesionales Inmobiliarios or AMPI (Mexican Association of Real Estate Professionals).

At this time, there are no license laws regulating real estate brokerage and sales in Mexico. Sonora legislators, however, recently passed a bill requiring real estate agents to be licensed. The law will go into effect later this year.

Potential buyers should also check with the local chambers of commerce or an attorney for advice.

Time-share purchases do not follow the same regulations and can be handled as a private two-party agreement. Experts say it’s still a good idea to check with an attorney or agent before signing any time-share agreements.

Source: Sonora Office of Tourism and Century 21 Sun & Sand

Copyright ? 2007, The Arizona Daily Star, Tucson
Distributed by McClatchy-Tribune Information Services.

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RISMEDIA, June 19, 2007-(MarketWatch)-The outlook for U.S. home building is the worst in 16 years, the National Association of Home Builders reported Monday. The builders’ housing market index fell by two points to 28 in June, the lowest since February 1991.

The market probably won’t turn around until next year, said David Seiders, chief economist for the builders. “We expect housing to exert a drag on economic growth during the balance of 2007,” Seiders said in a press release.

The decline was in line with expectations of economists surveyed by MarketWatch.

At 28, the index shows that fewer than one-third of builders think the housing market is good or fair. Builders are concerned about high levels of unsold homes, rising mortgage rates and the continuing “crisis” in the subprime mortgage segment, the industry trade group said.

After rebounding earlier in the year as favorable weather boosted sales and construction, the builders have grown increasingly pessimistic in recent months as lenders began rejecting more borrowers, and delinquencies and foreclosures mounted. The index has fallen 11 points from 39 in February to 28 in June.

The index was at 42 a year ago and peaked at 72 two years ago.

The report comes a day ahead of the government’s data on housing starts and building permits for May. Economists surveyed by MarketWatch are forecasting a 4% drop in starts to a seasonally adjusted annual rate of 1.46 million, down 36% from the peak. Meanwhile permits are expected to be unchanged at 1.46 million, down 35% from the peak.

All three components of the housing index fell in June. The index for single-family home sales dropped from 31 to 29, also the lowest since 1991. The index for expected sales fell by two points to 39, the lowest since September. The index for buyers’ traffic dropped by one point to 21, the lowest since January 1991.

Regionally, the index fell in the three most important areas, and rose in the tiny Northeast market. The index fell one point to 32 in the South, fell by three points to 19 in the Midwest and fell by five points in the West to 27. The index rose by three points in the Northeast to 35.

The builders’ group left little reason to hope for a quick turnaround.

“Builders continue to report serious impacts of tighter lending standards on current home sales as well as cancellations, and they continue to trim prices and offer a variety of nonprice incentives to work down sizeable inventory positions,” said NAHB President Brian Catalde, a home builder from El Segundo, Calif.

“It’s clear that the crisis in the subprime sector has prompted tighter lending standards in much of the mortgage market, and interest rates on prime-quality home mortgages have moved up considerably during the past month along with long-term Treasury rates,” Seiders said. “Home sales most likely will erode somewhat further in the months ahead and improvements in housing starts probably will not be recorded until early next year.”
After the late 1980s-early 1990s housing slump, it took 17 years for annual housing starts to exceed the 1986 peak of 1.81 million.

Rex Nutting is Washington bureau chief of MarketWatch.

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