Good News for U.S. Buyers...

...not so good for Hong Kong buyers.

Global Survey: U.S. Homes Are Most Affordable
United States real estate offers a lot of bang for your buck, according to a new survey that shows U.S. homes are the cheapest relative to incomes among English-speaking nations.

Australian homes — which have a median price of $454,000 — were found to be the most unaffordable among English-speaking nations, according to the report by consulting firm Demographia, which examined affordability in the third quarter of 2010. The median home in Australia costs 6.1 times the gross annual median household income. What’s more, 85 percent of the homes in Australia’s major cities were more than 5.1 times average income, according to the survey.

On the other hand, U.S. homes have a median home price of $168,000 and homes cost only three times yearly income or less

Australia has gone from being "the exemplar of modestly priced, high-quality middle-class housing, to now the most unaffordable housing market in the English-speaking world," the report noted. "Each of the least affordable markets were characterized by more restrictive land use regulation, which materially increases the price of land and makes housing less affordable."

The priciest city for real estate, in general: Hong Kong, with homes costing 11.4 times income. (The report considers any markets where home prices are 5.1 times household income or more very unaffordable.)

Prices in Hong Kong have increased by more than 50 percent in the past two years, due to low interest rates, an expanding economy, and buyers flooding in from China.

The United States boasted the most affordable major markets. Atlanta was the most affordable big city, in which the median home price is $129,000.

Meanwhile, the most unaffordable markets in the U.S. were mostly found in California: San Francisco (homes cost 7.2 times income), San Jose (6.7 times), San Diego (6.2 times), New York (6.1 times), and Los Angeles (5.9 times).

Source: “U.S. Homes Most Affordable in English-Speaking -- Except in S.F. and S.J.,” Bloomberg News (Jan. 24, 2011)

Hot Design Trends Debut at International Builders’ Show : Styled, Staged & Sold

Want to know what the latest trends are when it comes to building a new home? Even if you are remodeling and are thinking of selling in the future, take a look and get some good ideas.

Hot Design Trends Debut at International Builders’ Show : Styled, Staged & Sold

REALTOR® Magazine-Daily News-Owners, Renters Favor Owning a Home

REALTOR® Magazine-Daily News-Owners, Renters Favor Owning a Home

That Makes NO Sense

This past week as I was making contact with various lenders on my short sale listings, I had the pleasure of speaking with Jenna G.  She is the negotiator for the Home Affordable Foreclosure Alternatives (HAFA) short sales for Chase Mortgage.  That wasn't a type at the beginning of the last sentence.  Yes, Jenna is the only HAFA negotiator for Chase (at least according to her).  I asked her if she was serious and she replied with a resounding, "Yep".

Why?  Why is she the only negotiator dealing with HAFA files?  There are, of course, other negotiators dealing with short sales - just not ones where HAFA is concerned.  We, as REALTORS® wonder why the process has to take soooooo long to get an approval.  Buyers and sellers wonder the same things.  With short sales playing such a large part in our nation's housing issues, one would think Chase could hire one more person to help with the workload.  Just one.  Heck, that would cut in half the time it takes to get an approval!

Oh, and did I mention that Jenna G. is not allowed to email us REALTORS® with approvals or questions or anything?  It's true.  Jenna G. is only allowed to talk with me on the phone and and written communication must be done via fax.  Welcome to 1980.

It's time to step it up, Chase.  It''s time to bring communications into the 21st century.  It's time to hire a few more people and help move our housing industry forward so that the economic recovery can be complete.

Tables Turn in 2011 on Rent vs. Own

Rents have surged as home prices have dropped, which have prompted some to ponder whether homeownership is really worth it. Moody’s Analytics data has suggested that it makes more financial sense to rent than buy in many U.S. cities, but Moody’s chief economist Mark Zandi now says that is about to change.

"By mid 2011 and certainly by end of 2011, buying will be superior to renting in most parts of the country," Zandi says.

Home prices are expected to fall further, making more homes affordable, whereas rent prices are expected to continue to rise this year.

The following are a few of the top cities where it makes more sense to buy than rent, according to Moody data. (Experts often recommend buying when the price-rent ratio is below 15 and rent when it’s above 20.)

▪ Cleveland: 11.43
▪ Pittsburgh, Pa.: 11.71
▪ Detroit: 12.32
▪ Phoenix: 12.35
▪ Atlanta: 12.82
▪ Tampa, Fla.: 13.08
▪ Orlando, Fla.: 13.1
▪ Cincinnati: 13.74
▪ Las Vegas: 13.89

Source: “Rent vs. Own Ratio to Flip in 2011?” Fortune (Jan. 4, 2011)
Reprinted from Realtor Magazine

Changes in HAFA (and they're good ones)

Treasury Department Amends HAFA Program to Increase Borrower Eligibility

On December 28, 2010, the Treasury Department released an update to the Home Affordable Foreclosure Alternatives Program (HAFA). The changes will increase the number of eligible borrowers who may participate in the program and should expedite approvals:

(1) A borrower's reason for relocation no longer needs to be connected to employment nor be of a certain distance from the property. Borrowers may have moved up to 12 months before certain dates in the HAFA process but may not have purchased another home.
(2) Servicers are not required to determine if the borrower's total monthly mortgage payment exceeds 31% of gross income. Borrowers will still be required to show a hardship.
(3) Servicers are now required to communicate approval, disapproval, or a counter offer no later than 30 calendar days after receiving an (i) executed sales contract, (ii) Alternative Request for Approval of Short Sale, and (iii) a signed Hardship Affidavit.
(4) If an unsolicited borrower requests HAFA, the servicer has 30 calendar days to determine the borrower's eligibility and, if eligible, send the borrower the Short Sale Agreement.
(5) HAFA will no longer impose a 6% cap on payments to each subordinate mortgage/lien holder. The $6,000 aggregate limit is still in effect.

The update also clarifies vendors of the servicer may not be paid from the real estate commission. Servicers must implement the changes by February 1, 2011.

For more information, click here.

2011 Brings Lots of Change

So, by now you have no doubt heard the news.  In case you missed it, I have taken on the position of Branch Manager at the John L. Scott Portland Metro office in Gresham.  This is a big move for me because for the past nine years I felt pretty ensconced at my previous office.  I spent over half my real estate career with one office and now the change has come and I am ecstatic about it!

I have the opportunity to work with some great people at John L. Scott while at the same time I get to continue to help my clients with all their real estate needs.  This new year looks to be shaping up to be great so stay tuned!