Today’s Top Story – Consumer

More Americans Believe Economy Headed in Right Direction

Despite continued uncertainty surrounding the fiscal cliff, Americans are showing increased confidence in the housing market and the direction of the economy. According to results from Fannie Mae’s November 2012 National Housing Survey, such improvement bodes especially well for continued strengthening in the housing sector, which in turn is likely to support overall economic growth. “Consumer attitudes toward both the economy and the housing market continue to gather momentum, with many of our 11 key National Housing Survey indicators at or near their two-and-a-half-year highs,” says Doug Duncan, senior vice president and chief economist of Fannie Mae.

Unemployment in U.S. Falls to 7.7 Percent

(MCT)—The nation’s unemployment rate dropped from 7.9 percent to 7.7 percent last month — the lowest in nearly four years — as businesses added another 146,000 jobs, the Labor Department reported Friday morning. The job gains were close to the average of 151,000 a month so far this year — enough new openings to slowly put the 12 million people who are job-hunting back to work. Nearly 50,000 fewer jobs were created in September and October than originally reported by the department, however, according to revisions based on more complete information from the states. The rate is lowest recorded since December 2008, just before President Obama took office.

The Foreclosure Iceberg Is Slowly Melting

CoreLogic reported Monday that October prices that exclude distress sales rose only 5.8 percent while prices that include distressed sales increased on a year-over-year basis by 6.3 percent in October 2012, the biggest increase since June 2006 and the eighth consecutive increase in home prices nationally. In a separate report, CoreLogic said that despite the demand only 58,000 foreclosures were completed in October, a year-over-year decrease of 17 percent and a decrease of 25 percent from September.

Number of Improving Housing Markets Surges to 201 in December

The number of housing markets considered “improving” according to parameters established by the National Association of Home Builders/First American Improving Markets Index (IMI) surged by 76 to a total of 201 metros in December, according to recently release IMI data. The index also shows that the number of states represented on the list by at least one metro increased from 38 in November to 44 (plus the District of Columbia) in December. The index identifies metropolitan areas that have shown improvement from their respective troughs in housing permits, employment and house prices for at least six consecutive months.

Hot Property: Sharon Stone Sells Beverly Crest Compound for $6.575 Million

(MCT)—Actress Sharon Stone has sold a compound in the Beverly Crest, Los Angeles area for $6.575 million. The buyer is producer Lili Zanuck, widow of film producer Richard Zanuck. Surrounded by walls and gated, the Mediterranean-style estate sits on 5 acres with pathways, bridges, waterfalls, fruit trees, a meditation garden, a swimming pool and a tennis court with viewing pavilion.

Recovery Risks: Fiscal Cliff and the Winter Face Off

Recently, Clear Capital released its Home Data Index™ (HDI) Market Report with data through November 2012. The HDI Market Report uses a broad array of public and proprietary data sources providing the most timely and relevant analysis available, and the report showed that while markets are improving, as the fiscal cliff draws closer, 2012's housing momentum is most at risk. Report highlights include: • Price gains across markets started to soften in November. The effects of winter are unfolding, but REO saturation trends don't yet sound alarms.

The Consumer’s Search for Excellence

Twenty speaking events in the last 45 days has created not only a lot of SkyMiles, but has given me the opportunity to have at least twenty real estate-related conversations while flying between events. As I began this series of events, I decided that I would do my best to get a feel for how the general public is feeling about the real estate industry—and about REALTORS®, specifically. Some conversations lasted only five minutes, others 45 or more, but the overwhelming consensus was that people don’t feel they need a REALTOR®.

Mortgage-Interest Deduction Could Fall Prey to Revenue Needs

(MCT)—As Congress looks for new sources of revenue to deal with the looming “fiscal cliff,” a popular ingredient of the American dream could be on the chopping block. It’s the mortgage interest tax break, which allows taxpayers to cut their taxable income by the amount of interest they pay on their home loans. Long seen as an untouchable “third-rail” in Washington, D.C., the break is now on the table as the Obama administration and Republicans look for more tax revenue.

Consumer-Centric Search Options Change the Typical House Hunt

To give today’s buyers what they want in a home, you must first understand what they want in a location. Coldwell Banker’s new “Best Places to Live” campaign is pioneering a new lifestyle-based style of home searching, highlighting the idea that the way we view homeownership, and what we look for in a home, is changing. “We are going back to the more traditional ways of judging the value of a home, and not solely looking at it through the financial lens,” says David Siroty, Coldwell Banker’s vice president of Communications. “Instead, the emotional and lifestyle value is critical.”

NewPoint Media Group Launches Catalog Challenge with $1,000 Prize

While some view the printed catalog as a dinosaur lumbering quietly into extinction, retailers have reinvented the catalog shopping experience to amplify their overall sales strategy this holiday season. NewPoint Media Group, publishers of The Real Estate Book, Mature Living Choices, Senior Living Choices, New Homes & Ideas, New Home Journal, and New Home Finder, among other titles, recently launched a “Catalog Challenge” to illuminate retailers’ embrace of the printed catalog as a vital component in their overall marketing strategy this holiday season.

Shooting for the Edit: Getting Good Coverage

When I say the word coverage, I absolutely do not mean your cell reception. Put your phone away and pay attention to the star here for a minute. Coverage here refers to the amount of footage you shoot of your scene, and trust me, if you don’t get enough coverage during production you’re going to be throwing clumps of your hair around your editing bay when you get into post.

Next Generation Buyers: Savvy, Sophisticated and Ready to Buy

If you want to know who will push the economy forward in coming years, look no further than Generations X and Y. The Generation X and Y age group, ranging from 18-48 is 103 million strong making them a group of consumers and eventual homebuyers that will make a major impact on the market. I had the opportunity to listen in as Sherry Chris, President and CEO of Better Homes and Gardens® Real Estate spoke at the 2012 NAR REALTORS® Conference and Expo about the buying habits of Generations X and Y. Below is an excerpt and my key takeaways from her presentation and the details surrounding a recent survey released by Better Homes and Gardens Real Estate.

Relaxing Retirement Markets Near Your Urban Kids

If you’re retired or nearing retirement, this may sound familiar: Your kids thrive on the hustle and bustle of city life but you have been there, done that. With family connections in mind, ERA Real Estate pinpointed five markets close enough to urban hotspots but far enough away to enjoy retired life. “One day our children will leave the nest and naturally, as parents, we want them to soar,” says Charlie Young, ERA Real Estate’s president and CEO. “We also want to stay in touch and visit with them as much as possible without giving up our own lifestyle. Committed to delivering value to our customers, ERA Real Estate took a look at how retirees could enjoy this new phase of life without giving up too much family time.”

Existing-Home Sales Rise in October with Ongoing Price and Equity Gains

Sales of existing homes increased in October, even with some regional impact from Hurricane Sandy, while home prices continued to rise due to lower levels of inventory supply, according to the National Association of REALTORS®. Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, rose 2.1 percent to a seasonally adjusted annual rate of 4.79 million in October from a downwardly revised 4.69 million in September, and are 10.9 percent above the 4.32 million-unit level in October 2011.

FHA Audit Leads to Higher Fees

The results of FHA’s annual audit sent a shock wave through the nation’s housing community as even agency officials could not confirm that the higher borrowing costs it will charge borrowers will be enough to cover losses. The FHA reported on Friday that its annual audit shows that even if it stopped making any new loans immediately, the agency doesn’t have enough in reserve to cover expected losses on loans already in its portfolio. The result would lead to a $16.3 billion net worth deficit.

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