Monday, March 19, 2012

2012 Coldwell Banker Bracket of Affordability

Via Coldwell Banker Blue Matter  
March Madness is back and so is the 2012 version of the Coldwell Banker Bracket of Affordability. For the last few year we’ve filled out our bracket based on which schools have the most affordable housing market based on median sales price. Some years we do better than others, but this year our champion has a fighting shot.
Michigan State, which resides in East Lansing, Michigan, is our champion and represents the most affordable market in the field of 68. Actually Michigan is well represented as Detroit is the runner up. Notre Dame and Syracuse make up the other two members of our Final Four.
As we filled out our brackets, we decided to take a look at how many Coldwell Banker listings are also in the college basketball spirit. Here’s what we found:
  • 1,874 of the current listings on coldwellbanker.com have basketball in the description
  • 13 homes for sale reside on Duke Street, but not a single listing has the phrase “Tar Heel” in it
  • 46 detail pages reference the term “hoops”
  • Sadly, there are no Coldwell Banker listings in Brackettville, TX
  • Eagle & Tiger are the two most popular mascots in NCAA basketball and 1,035 properties on coldwellbanker.com make reference to “eagle” while only 158 refer to “tiger.”
  • And finally, 730 homes for sale promote the fact that they contain a “man cave,” the perfect room for any hoops fan.
You can download a PDF version of the 2012 Coldwell Banker Bracket of Affordability here. Best of luck to your favorite college team and enjoy the madness that is March!

Westwood Residents Consider Historic Preservation

The Holmby Westwood Property Owners Association hosted an evening with the LA Conservancy, and actress and preservationist Diane Keaton.

Courtesy of Westwood/Century City Patch

Image Courtesy of Eonline

Westwood residents got a lesson in historic preservation from the Los Angeles Conservancy and a local property owners association in a meeting Thursday night.

With actress and historic preservationist Diane Keaton in attendance, the Westwood Holmby Property Owners Association (HWPOA) hosted a presentation by the Los Angeles Conservancy and a Q&A session for attendees. Residents of the neighborhood bounded by Wilshire, Sunset, Hilgard and the Los Angeles Country Club were encouraged to vote for or against designating their neighborhood a Historic Preservation Overlay Zone.

"We have the original stuff in Westwood and if we're going to revive Westwood, that historic character has to remain in Westwood," Reuben said in an interview with Westwood-Century City Patch. "We don't just have buildings here and there. We really have a high concentration of historic buildings. We have a wonderful little jewel here that needs to be preserved."

Currently, about 30 percent of the neighborhood's 1100 households have cast a vote and 80 percent of them are in favor of an HPOZ, said Susan Reuben, vice president of HWPOA and chair of the history and architecture committee. Once they hear from more residents, the HWPOA will take their ballots and accompanying petition to Los Angeles City Councilman Paul Koretz. A public meeting on the HPOZ would be the next step.

If the neighborhood becomes an HPOZ, the Holmby Westwood neighborhood will have a considerable amount of control maintaining its historic character. A five-member board of qualified residents would review requests for any changes that would alter the exterior of the homes, and make recommendations based on a preservation plan to the Los Angeles Planning Department.

"Preservation is not against change, and that's an important stereotype we have to fight," said Linda Dishman, executive director of the Los Angeles Conservancy. "It's how you manage it."
Currently, the neighborhood has some old protections against what some residents say is inappropriate development. A small number of individual properties have covenants, conditions and restrictions (CC&R's) that can restrict some changes. The HWPOA is advocating for the HPOZ because it would cover the whole neighborhood.

Residents who attended the meeting expressed the desire for historic preservation measures in other residential neighborhoods, including south of Wilshire Boulevard. Many expressed frustration at the number of vacancies in the village.

"Residential neighborhoods in Westwood are part and parcel with the village," Reuben said. "We need to get our village back and so if all of you starting talking about this with people you know, raising awareness so that the community can come together, that would be absolutely wonderful."
HWPOA held community and block meetings over the summer and fall last year. According to the group's website, information on HPOZs was mailed and emailed to residents prior to the meetings. For more information from HWPOA about the process, click here.

A guide to Real Estate Websites

Via The Washington Post

Many real estate Web sites — and there are many more than those listed below — provide property listings and market reports, and photos. Most also offer mobile apps that use GPS tracking to display details about houses for sale near wherever you are, let you make customized searches and set up alerts about new listings. But each company offers a few standout features, so here’s a guide to the best features of each.
Zillow

Best for: Wide range of listings and market details. Zillow’s massive site and mobile apps include traditional listings as well as homes for sale by owner, foreclosure, auction, rental and new construction listings. Includes “Zestimates,” or home values, for about 100 million homes, historical Zestimates and local market reports, price changes, and sales data going back decades. A source of information about all homes in most parts of the country, whether or not they’re on the market.

Trulia
Best for: Neighborhood feel. This site offers more detailed information about neighborhoods, including details about local schools (with parent reviews, standardized test scores, and other information from GreatSchools.org), crime statistics, and nearby restaurants and shops that can be mapped for each home. It also includes active community forums and user ratings for neighborhoods. A particularly good resource to get the sense of a neighborhood — not just a single property.

Realtor.com
Best for: Size and tools. The official site of the National Association of Realtors lists 3.9 million homes for sale and more than 265,000 rentals. It says it updates 80 percent of its listings every 15 minutes and the other 20 percent at least every 24 hours. The “area highlighter” feature lets you draw a map and create the boundaries of your search and also includes clear information about recently sold homes. Listings are sent straight from the multiple-listing service with up to four photos; agents can pay for enhanced listings to add more photos and information.

Redfin
Best for: Mobile app. This large Web-based brokerage has some of the most frequently updated listing information and coolest tools. You can read comments about each house that Redfin’s agents visit and schedule home tours online. You can use the site just for its research tools, or you can work with Redfin’s salaried agents who are paid bonuses based on customer surveys.

HomesDatabase.com
Best for: Fastest updates for Washington-area homes. The consumer site from Washington’s multiple listings service gives you access to a shortened version of the same database that real estate agents use. The site does not offer a lot of all the fancy features that other sites do, but the listings are updated as soon as agents make changes to the multiple-listing service.



Florence Mattar
Coldwell Banker Beverly Hills North
301 North Canon Drive, Suite E
Beverly Hills, California 90210
310.927.2777

Top 10 Most Searched Housing Markets Online

Chicago continues to be the most searched for housing market at REALTOR.com, according to February search data. There was little change in the top 10 searched housing markets in February compared to the prior month, except Tampa-St. Petersburg-Clearwater, Fla., moved up in the rankings from No. 7 to No. 5.
The following are the top 10 most searched for housing markets at Realtor.com in February:
1. Chicago
Median list price: $189,800

2. Detroit
Median list price: $84,900

3. Los Angeles-Long Beach, Calif.
Median list price: $325,000

4. Philadelphia, Pa.-N.J.
Median list price: $225,000

5. Tampa-St. Petersburg-Clearwater, Fla.
Median list price: $144,900

6. Phoenix-Mesa, Ariz.
Median list price: $174,900

7. Atlanta
Median list price: $154,900

8. Dallas
Median list price: $194,500

9. Orlando, Fla.
Median list price: $154,500

10. Las Vegas, Nev.-Ariz.
Median list price: $122,900








Florence Mattar
Coldwell Banker Beverly Hills North
301 North Canon Drive, Suite E
Beverly Hills, California 90210
310.927.2777

Monday, March 12, 2012

Pending sales of existing homes up to nearly two-year high

Contracts for existing home sales up in January

courtesy of The Los Angeles Times

More Americans are signing contracts to buy existing homes than at any time in nearly two years, boosting the housing industry’s slow recovery, according to the National Assn. of Realtors’ index of pending home sales.

The measure is up 2% to 97 in January after slipping 1.9% in December. The index of deals for previously owned homes is up 8% compared with the 89.8 level from January 2011.

Last month saw the highest point on the index since April 2010, when consumers drawn by a home-buyer tax credit pushed the figure to 111.3. That was the last time the measure exceeded 100 -– the benchmark for industry health.

The index showed year-over-year increases in every region – a 9.8% hike in the Northeast, a 10.8% rise in the Midwest, a 10.5% boost in the South and a smaller 0.7% uptick in the West.

Contracts are usually signed a month or two before a deal closes and the home purchase is finalized, making the pending-sales index a leading indicator for where the market is headed. The Realtors group said last week that existing home sales in January were up more than 4% to an annual rate of 4.57 million.

Housing experts such as Lawrence Yun, the Realtor group’s chief economist, credit the sliding unemployment rate -- which fell to its lowest point in three years in January -- as well as a downward trend in home prices and a supply of homes that is at a nearly seven-year low.

"Movements in the index have been uneven, reflecting the headwinds of tight credit, but job gains, high affordability and rising rents are hopefully pushing the market into what appears to be a sustained housing recovery," Yun said in a statement.

Two Surveys Show Home Prices Lowest in 10 Years, Down 31% Since Peak in 2006

Via MortgageNewsDaily

Two companies released home price data on Wednesday. CoreLogic released its Home Price Index (HPI) for the month of January while Lender Processing Services (LPS) released numbers for December.

The LPS national HPI in December was the lowest since September 2002 with an average house price in December of $197,000, down $2,000 from the November number. December was the sixth consecutive month in which home prices declined and the actual decline of 1.0 percent was higher than the 0.8 percent that had been predicted. LPS is projecting a further decline in January to $195,000 or a -1.2 percent change.

While prices are still dropping, at least the rate of decline is less steep. During the period of most rapid decline - June 2007 to December 2008 - prices fell an average of 13.8 percent a year. Since then the annual rate has been 4.4 percent.


Aggregate home values are down 31 percent since the peak in June 2006, declining from $10.8 trillion to $7.5 trillion.
LPS said that December figures appear to have continued a seasonal pattern that has modulated prices since 2009. Seasonal variations seem to occur in the market for non-distressed home sales but short sales do not vary over the year nearly as much. Therefore the apparently significant seasonal effects that LPS and others have reported have been influenced by the large proportion of short sales after the bubble. These sales have been treated as if they experienced typical seasonal variations and thus have exaggerated seasonal price variations. LPS said that beginning next month it will institute updated HPI non-distressed sales which will even out the seasonal variations.

In 44 states all of the MSAs therein had price declines in December, a total of 373 of the 411 MSAs covered by LPS. Prices also fell in 28 MSAs in other states. Only Phoenix and Miami had average prices increases during December while San Francisco, San Diego, Detroit, Chicago, and Atlanta all had declines that exceeded 1.5 percent.

Raj Dosai, vice president of LPS said that despite the broad price declines since the bubble, not all MSAs have seen consistent price drops. "About one-fifth (89) of all the MSAs that LPS covers have seen average home prices increase since December 2008. For 90 percent of these MSAs, prices rose only as the lowest-priced homes in their markets rose. This correlation did not necessarily hold for higher-priced homes in those areas. Unfortunately, the MSAs that have seen price increases since December 2008 are generally small. Boston and Pittsburgh are exceptions."

CoreLogic tracks home sales including distressed sales (short sales and sales of lender owned real estate or REO.) Its HPI for January declined on a year-over-year basis by 3.1 percent and on a month-over-month basis by 1.0 percent, the sixth consecutive monthly decline. When distressed home sales are excluded the HPI narrows to a 0.9 percent decline year-over-year and there was a 0.7 percent increase in prices since December.

"Although home price declines are slowly improving and not far from the bottom, home prices are down to nearly the same levels as 10 years ago," said Mark Fleming, chief economist for CoreLogic.

States with the largest increase in HPI were South Dakota (+5.7 percent), North Dakota (+4.0 percent) and West Virginia (+4.0). When distressed sales are excluded the greatest increases were South Dakota (+6.4 percent), Montana (+5.9 percent) and North Dakota (+3.8 percent).
The largest depreciation in home prices was noted in Illinois (-8.7 percent), Nevada (-8.0 percent, and Delaware (-7.9 percent.) When distressed sales are not included the greatest depreciation was in Nevada (-6.7 percent), Delaware (5.5 percent), and Minnesota (-4.1 percent.)
Including distressed transactions, the peak-to-current change in the national HPI (from April 2006 to January 2012) was -34.0 percent. Excluding distressed transactions, the peak-to-current change in the HPI for the same period was -24.2 percent.

Home as investment? That's so 2005




A young Tom Selleck with his father, Bob. © Coldwell Banker Real Estate







New Coldwell Banker commercials emphasize the intangible value of homes. The ads are voiced by actor Tom Selleck, whose father and siblings were in real estate





The housing crisis has taught all of us a hard lesson: A home is not an investment. A home is a place to live.


Coldwell Banker Real Estate just launched a new advertising campaign with that hook, using the voice of actor Tom Selleck, whose father worked 38 years for the real-estate company.

 http://www.youtube.com/embed/k-wlGGsp2Zo?rel=0"

"People’s homes are so important because they are the setting for life’s most meaningful moments," Michael Fischer, chief marketing officer for Coldwell Banker, said in a news release. "While the economics of homebuying are critical, we must remember there is much more to it: lifestyle, memories, family and pride of ownership."

It's certainly a lot more cheerful to add up the good times you've had in your house than it is to subtract how much monetary value it has lost. Expecting one's home to rise substantially in value has not always been part of the American dream of homeownership, and the current housing crisis has been a painful reminder of that.


A total of 22.8% of U.S. mortgages are underwater, according to the latest CoreLogic data. Home values are back to 2002 levels nationally and lower than that in some cities, and prices are likely to fall further in some areas.


That doesn't mean that homeowners aren't finding intangible values in their homes, which is the sentiment that Coldwell Banker is trying to tap.

Whether you consider your home an investment depends as much on you as it does on the home and its value, writes Trent Hamm at The Simple Dollar. If you're planning to move soon, the price matters a lot more to you than it does if you’re planning to stay forever.

This is how one of the Coldwell Banker commercials (in Tom Selleck's voice) calculates home value:

"You start by taking the smell of pancakes made on a Sunday morning and times that by the sound of kids laughing from the bottom of their bellies. Then you add the taste of a good cabernet with family at Thanksgiving and multiply that by the warmth of a winter fire. Then you subtract the stress of work and minus the struggles of the outside world, add the power of a bedtime story and times that by the square root of a grandmother kissing her grandchild. Multiply all this by about 50,000 memories and 100,000 smiles. And then you have a value of a home."

Other short commercials start out, "Here's to kids – and all the things that make a house a home," with pets and backyards also being toasted. Inman News has videos of the commercials.


Selleck's father retired as an executive vice president at Coldwell Banker, and his sister and two brothers also worked in real estate. As he struggled to make it as an actor, his father more than once suggested he get a real-estate license. From quotes by Selleck provided by Coldwell Banker: "It was indeed a proud moment when I was able to tell my mom that I was, at last, in the family business."


What do you think? Has Americans' view of homeownership shifted enough from investment to lifestyle to respond to these commercials?

Thursday, March 8, 2012

Top Real Estate Markets for Million-Dollar Homes

Via AOL Real Estate/Inman News

Real estate markets in Sun Belt states were the most popular among visitors searching recently for homes listed for at least $1 million on Realtor.com.



The Los Angeles-Long Beach, Calif., metro area dominated those online visits, with 16.1 percent of total searches at Realtor.com in January targeting $1 million-plus homes. Neighboring Orange County, Calif., was a distant second, with 6.3 percent of total searches dedicated to $1 million-plus homes, followed by Miami with a 4.8 percent share. The share of total searches devoted to $1 million-plus properties was 2.7 percent in 10th-ranked Naples, Fla.

Outside of Chicago, at No. 4, the top 10 was dominated by metros in the Sun Belt states -- Atlanta, at No. 8, was the farthest north among those nine markets.

The top three metros are in coastal markets: Los Angeles-Long Beach, Orange County and Miami.

No. 2 Orange County had the highest median list price in January on the list, at $425,000. The next most expensive home markets, respectively, on the list were: No. 10 Naples, with a $365,000 median home list price, and No. 5 San Diego, Calif., with a $349,000 median home list price.

Methodology: This list is based on Realtor.com search data for January 2012. The markets are ranked by the largest share of online searches for properties priced at or above $1 million at Realtor.com during that month.



Read the full report at Inman News: Top 10 real estate markets for $1M-plus home searches.

Beverly Hills Hotel's centennial fever leads to some sweet deals

March 8, 2012 


The Beverly Hills Hotel turns 100 years old on May 12, cause enough for the hotel to serve a $100 cocktail in a take-home glass coupe engraved with its centennial design. Marilyn Monroe, Elizabeth Taylor and John Lennon slept here, as did many other luminaries.


Now the hotel is chronicling its fabdom in words and pictures with the arrival of the book "The Beverly Hills Hotel and Bungalows -- The First 100 Years" by Robert S. Anderson, as well as special centennial-themed offers. My favorite pick: a facial, mani-pedi or massage at the day spa, on sale for $100 each.


The deal: You don't have to be a guest to take advantage of the deals at the hotel's Spa by La Prairie. Selected treatments -- the Pink Palace Manicure and Pedicure, Diamond Anniversary Facial and/or the Caviar Express Massage -- are discounted to $100 each. Make reservations in advance at La Prairie, which is open from 8 a.m. to 10 p.m. daily.

When: The offer is good though the end of the year.

Coldwell Banker Real Estate survey: Sellers more flexible

Agents say kitchens, open floor plans among priorities for buyers
Via Inman News




A Coldwell Banker Real Estate survey of more than 600 of the company's real estate agents across the U.S. shows that, according to a slight majority of the agents polled (51 percent), home sellers are more willing to lower their asking prices to increase the chance of a sale than they were last year.
Home sellers are also more willing to reconfigure their homes to facilitate a sale this year than they were last year, according to 45 percent of the survey respondents. The survey was conducted from Jan. 24 to Feb. 7.

A vast majority of home sellers (94 percent) are streamlining their homes' contents and doing cosmetic repairs and minor updates like painting, according to the agents surveyed. Fifty-nine percent say sellers are staging their homes with outside decorations and furniture to make them more appealing.

Coming as no surprise, finished basements and rec rooms are not on top of homebuyers' minds when searching for a home -- only 1 percent of the agents surveyed thought those features were the highest priorities for buyers.

Nice kitchens and open floor plans, however, are priorities for some buyers -- 33 percent of surveyed agents reported that nice kitchens were the most important home-selling feature, while 14 percent of respondents felt open floor plans were a priority.

Babies, jobs and marriages represent 70 percent, 69 percent and 59 percent of the respondents' opinions, respectively, of the life events driving homebuyers' decisions to purchase homes.

Average rate on 30-year mortgage dips to 3.88%

via The Associated Press

WASHINGTON–Fixed mortgage remain a bargain at the start of the spring-buying season: The average rate on the 30-year mortgage dipped this week, while the 15-year loan fell to a new record low.



Mortgage buyer Freddie Mac said Thursday that the rate on the 30-year loan ticked down to 3.88%, from 3.90% the previous week. That's slightly above the 3.87% average rate hit three weeks ago, which was the lowest since long-term mortgages began in the 1950s.

The average on the 15-year fixed mortgage fell to 3.13%, from 3.17% a week ago.
Rates on the 30-year loan have been below 4% for three months. That has made home-buying and refinancing more attractive for those who can qualify.

The super-low rates are helping the housing market recover, albeit slowly. Home sales have been rising and the four-week average of home purchase applications was up in January and February, according to the Mortgage Bankers Association.

In recent months, other signs have emerged that suggest the troubled housing market could start to turn around this year.

Builders are more optimistic after seeing more people express interest in buying a home. Construction has picked up and builders are requesting more permits to build single-family homes. And the supply of homes on the market is falling, which could send home prices higher.

A key reason for the optimism is the improving jobs market. Employers have added an average 200,000 net jobs per month from November through January. That has helped lower the unemployment rate for five straight months to 8.3%, the lowest level in nearly three years.
Frank Nothaft, Freddie Mac's chief economist, said a typical U.S. family now has more than double the income needed to purchase a median-priced home. That's the first time that's happened since records on home affordability were first recorded in the 1970s.

Still, home prices continue to fall. Millions of foreclosures and short sales — when a lender accepts less than what is owed on a mortgage — remain on the market. And the housing crisis and recession have also persuaded many Americans to rent instead of buy, which has led to a drop in homeownership.

Economists say housing is years away from returning to full health.

To calculate the average rates, Freddie Mac surveys lenders across the country Monday through Wednesday of each week.

The average rates don't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1% of the loan amount.

The average fees for the 30-year and 15-year fixed loans were unchanged at 0.8.

For the five-year adjustable loan, the average rate fell to 2.81% from 2.83%, and the average fee was unchanged at 0.7.

The average on the one-year adjustable loan ticked up to 2.73% from 2.72%, and the average fee was unchanged at 0.6.

Wednesday, February 29, 2012

Warren Buffett on CNBC: I'd Buy Up 'A Couple Hundred Thousand' Single-Family Homes If I Could

Via CNBC
Warren Buffett and Becky Quick in Omaha
David Grogan/CNBC

Warren Buffett says along with equities, single-family homes are a very attractive investment right now.


Appearing live on CNBC's Squawk Box, Buffett tells Becky Quick he'd buy up "a couple hundred thousand" single family homes if it were practical to do so.

If held for a long period of time and purchased at low rates, Buffett says houses are even better than stocks. He advises buyers to take out a 30-year mortgage and refinance if rates go down.

Buffett revealed that he put 175 million euros into each of eight European stocks on behalf of Berkshire Hathaway at the end of 2011, but did not reveal the names of those stocks.

He also said Berkshire bought just a "few" shares of IBM [IBM 197.75 -0.23 (-0.12%) ] this quarter. He would have bought more but the price went up. Buffett tells Becky he probably won't buy a tech stock again, but if he understood a company and liked its management and price he wouldn't rule out another tech purchase.

Buffett says if he could only own one bank stock it would be Wells Fargo [WFC 31.37 --- UNCH (0) ] and Berkshire also added to its position in that stock during the current quarter.

On Bank of America [BAC 8.135 0.025 (+0.31%) ] , Buffett says the bank's deposit base is a "huge asset" and CEO Brian Moynihan has done exactly what he would do.

Buffett also repeated his praise for JPMorgan Chase [JPM 39.50 0.29 (+0.74%) ] CEO Jamie Dimon and says he owns some of those shares in his personal portfolio.

He does have some criticism for a big Berkshire stake: Johnson & Johnson [JNJ 64.92 -0.26 (-0.4%) ] . He believes too many mistakes have been made at the recall-prone company and while it is still attractive at its current price, he would sell some shares if he needed to raise capital. It's "obviously messed up in a lot of ways in the last few years."



Buffett on CEO Succession

Buffett defends Berkshire's decision not to disclose the name of the person the board has chosen to be his successor as CEO, saying he has invested in many companies where he didn't know who would be the next person running the company.

He does say the next CEO is "probably the CEO of some operation" within Berkshire.

Many people had interpreted Saturday's letter to shareholders as saying the board had only decided last year on a CEO successor, but Buffett tells Becky the board has actually known for years who it would go to if Buffett were suddenly unable to continue at the helm. That person, he says, has remained the same for more than a year and wasn't former Berkshire executive David Sokol. Answering a viewer's question, Buffett says the successor doesn't know he or she has been chosen by the board, and it isn't a board member.

Buffett says Berkshire is required by law to pay Sokol's legal bills, spending $1.4 million so far. He "assumes" something is happening with the SEC's investigation into whether Sokol was insider trading when he bought shares of Lubrizol before Berkshire announced its acquisition of the company.
 
 
 
Buffett on the Economy
 
 
Aside from the housing sector, Buffett says the U.S. economic recovery is healthy and won't be derailed by rising oil prices. He repeated what he's been saying throughout the recession, that it's always been a "terrible mistake" to be pessimistic on the U.S. over the long term.


Buffett says that except for its housing units, Berkshire's businesses have increased their hiring and that each business will have more employees at the end of this year than they did at the start.
But for the nation, he wouldn't be surprised if the unemployment rate returned to nine percent.

Buffett says that in "hindsight," he now thinks the government's bailout of the U.S. automakers was one of the best things to happen to the economy.


Buffett on New Portfolio Managers
 
 
Buffett heaped praise on the two Berkshire portfolio managers he's hired, Todd Combs and Ted Weschler. He says Combs did extremely well with his investment choices in 2011 and has been compensated accordingly.

While he's not actively thinking about hiring a third manager, Buffett says he won't rule it out if a great person comes along.

Buffett on Taxes
 
 
On taxes, Buffett says it's a myth that U.S. corporations are paying anything close to a 35 percent tax rate and maintains those taxes are not "strangling" American competitiveness.

He dismisses suggestions by critics that if he wants the super-rich to be taxed at a higher rate then he should write a check and make a voluntary donation to the Treasury. Buffett responds that contributions aren't going to solve the massive debt problem facing the U.S.

He says it is a "travesty" that everyone else is being asked to make sacrifices but not America's most wealthy people.

While he would accept Joe Kernen's suggestion for a tax on a person's total wealth, he says he doesn't think that's the best way to go, in part because it's hard to value assets like farms.

He also says he would accept taxing dividends at the higher ordinary income tax rate, depending on what that rate would be.

In response to a emailed question from a viewer suggesting he owes it to Berkshire shareholders not to antagonize people by pushing his controversial views on taxes, Buffett says he doesn't think a CEO needs to put his or her political beliefs into a "blind trust."

He's also calling on Congress to vote this year on the Bowles-Simpson fiscal reform proposals. Buffett dismisses the idea that Congress can't get anything done in a presidential election year, saying they shouldn't be paid for the year if they're not going to do some work.

Finally, time to buy a house?

Look past national headlines about the continuing decline of housing prices and focus on your local market. It's likely recovering nicely already.

Courtesy of MSN Money Partner



Nobody wants to catch a falling knife. It is as simple as that. If potential buyers see continued home price erosion, they will stay parked on the sidelines. But as with everything else in this unique and historic housing market, perhaps the usual logic doesn't apply.

“Housing is one of the great investments right now. I tell people all the time when they come up to me, they say, 'What should I do, Mr. Trump?' I say go buy a house," said Donald Trump earlier today on CNBC

"It wouldn't be an obvious mistake to buy a house now," hedged Robert Shiller, barely a few hours later.

Perhaps they were just jumping off Warren Buffett's declaration Monday that if he had a way to manage them, he would buy a couple hundred thousand single-family homes and rent them out.


Housing appears to be rated a "buy" these days, especially among investors, who see a ripe and rising rental market and big potential for income. But is it the right time yet for what I call "organic" buyers to get in? By this I mean people buying a home to actually live in it, raising a family there and letting the dog run around in the backyard. If prices are still falling, couldn't an even better deal be waiting down the road a bit?

No. House prices will continue to fall on a national basis at least through 2012, but you have to look past national headlines to your local market, which is likely recovering nicely already. The trouble with the national numbers is that they are heavily weighted toward the lower end of the market and its distressed end.

About 73% of homes that sold in January were priced below $250,000, according to the National Association of Realtors. Forty-seven percent of homes sold that same month were considered "distressed," which is either a foreclosure or a short sale (where the lender allows the borrower to sell for less than the value of the mortgage). With all the activity in these areas, no surprise that prices skew lower.

The $250,000 to $500,000 price range may now be the sweet spot for the market. Sales in January were up in this price range, and if you have good credit, you are within GSE (government-sponsored enterprise) and Federal Housing Administration loan limits in most markets. While the FHA just raised its insurance premiums, which may hurt much-needed first-time homebuyer demand, it is still one of the best loan products out there today, especially for those with lower down payments.

You cannot time housing any more than you can time the stock market. True, housing moves far more slowly, but that works to its benefit, as prices don't rise and fall on daily news or even on major events. Sales have clearly bottomed out in housing, and prices always lag sales. They will lag longer this time around, no question, but they will come back. Supply and demand will eventually win out, even after a historic crash. If you can't get a good mortgage now, then perhaps it's not your time, but if you can, waiting may not buy you much

Friday, February 24, 2012

Homes of 2012 Academy Awards nominees

via Yahoo! Real Estate

The movers and shakers of the movie-making industry have checked off most of the red-carpet events this awards season: Critics’ Choice Awards, Screen Actors Guild Awards and Golden Globes. Next up? The granddaddy of ‘em all: The Academy Awards.
This year, the Oscars will be broadcast live Feb. 26 (ABC, 7 p.m. EST). And while the media is abuzz with predictions of who’ll win and what they’ll wear, we are more interested in the homes where this year’s potential winners will stash their golden statues.
Here are five places the nominees have called home:

Michelle Williams
Location: Brooklyn, NY
Nominated: Actress in a Leading Role, “My Week with Marilyn”

Williams bought her house with the late Heath Ledger.
Main photo: Zillow | Inset: IMDb

Williams already picked up the Golden Globe for her role as Marilyn Monroe in “My Week with Marilyn.” She spends her time off the big screen with her daughter, Matilda Rose, in their cozy, four-floor house in Brooklyn. Williams’ slice of real estate was purchased with late actor and ex-fiance Heath Ledger in 2005 for a reported $3.6 million. Ledger, also Matilda’s father, passed away from a reported drug overdose in January 2008.

Brad Pitt
Location:
Malibu, CA
Nominated: Actor in a Leading Role, "Moneyball"

The four-bedroom Malibu home became too small for the Pitt family.
Main photo: Zillow | Inset: IMDb

If Pitt does take home an Oscar, chances are he won’t be stashing it in a home in the U.S. Pitt and his leading woman, Angelina Jolie, as well as their six kids, spend most of their time abroad, specifically in a rental home in southern France. They also own multimillion-dollar homes in Cambodia and Berlin in addition to homes in New Orleans and L.A. Pitt also previously owned a home in Malibu he purchased shortly after his divorce to Jennifer Aniston in 2005.
A self-professed architecture buff, Pitt spent months renovating the mid-century modern, pictured above. Although the home has 4,088 square feet of living space with four bedrooms and four bathrooms, it was on the small side for the eight-person Jolie-Pitt clan. Pitt sold the prime piece of Malibu real estate to Ellen DeGeneres and Portia de Rossi in December 2011.


Viola Davis
Location:
Granada Hills, CA
Nominated: Actress in a Leading Role, "The Help"

Davis' suburban home has five bedrooms and five bathrooms.
Main photo: Zillow | Inset: IMDb

Viola Davis rose to prominence with roles on the stage and has two Tony awards to her name. Since her move to the big screen, she’s been nominated for numerous awards, including best supporting actress for her role in “Doubt.”
Davis purchased the suburban home in Granada Hills in 2005 with her husband, Julius Tennon. The five-bedroom, five-bath home sits on a quarter acre with 3,917 square feet of living space.


Steven Spielberg
Location:
Malibu, CA
Nominated: Best Picture, “War Horse”

Spielberg's home covers more than 7,000 square feet.
Main photo: Zillow | Inset: IMDb

When Spielberg isn’t directing or producing his blockbusters, he splits time between his homes in Pacific Palisades, the Hamptons and Malibu. Unlike other celebrities, the director isn’t one to buy and sell properties on a whim; he has owned most of his homes for over 20 years.
His Malibu home, in particular, is a spectacular ocean-side property he bought in 1989 for $3,375,033. The 7,000 plus-square-foot-home sits on nearly an acre of beachfront property and has seven bedrooms and 10 bathrooms, and such must-have celebrity amenities as an in-ground pool.


Glenn Close
Location:
Bedford Hills, NY
Nominated: Actress in a Leading Role, “Albert Nobbs”

Close has many famous neighbors in Bedford Hills.
Main photo: Zillow | Inset: IMDb

Born and raised in Greenwich, CT, Close spends her time on the East Coast in both Manhattan, and Bedford Hills, NY.
Her Bedford Hills estate, pictured above, sits on 10 acres. Just north of Manhattan, the hills of Westchester County, and in particular, Bedford real estate, are appealing to many celebrities. Close can count Martha Stewart, Ralph Lauren and celeb couple Michael Douglas and Catherine Zeta-Jones among her Bedford Hills neighbors.

See more Homes of Academy Award Nominees.

Where Are Foreigners Buying Real Estate in the United States

Via Credit Sesame

Many Americans consider homeownership a key stepping stone to achieving the “American dream.” But no societal group values homeownership more than foreign-born U.S. residents: those who have come to the country to seek a better life, an American dream of their own. Consider this: nearly 80% of foreign-born U.S. residents owned a home in 2009, according to the National Association of Realtors. The national homeownership rate at that time was 65.4% (it is currently 66.3%).

With that in mind, we set out to find the makeup of each state (i.e. where do its foreign-born residents come from?), and which states are most popular among foreign homebuyers and investors. (Note that these stats refer to the overall population, not homeowners alone.)

(Click on the infographic below to learn more.)

Monday, February 20, 2012

Obama, Bush, Kennedy and More Homes of Presidents

Courtesy of Forbes

For each of the U.S.’ former Presidents, the most famous residence they inhabit over their lifetime is undoubtedly the big white one at 1600 Pennsylvania Avenue. But before they were elected and after they left the Oval Office, these policy makers called other addresses “home, sweet, home.” In honor of Presidents’ Day, we’re taking a look at the homes of Presidents — present and past.

Barack Obama




Prior to his current digs at the White House, President Obama lived off Greenwood Avenue in Chicago. The Obamas’ home, pictured above, was built in 1917 and features 6,199 square feet of living space. President Obama and First Lady Michelle purchased the brick home in 2005 for $1,650,000, shortly after Obama was elected to Senate.

George W. Bush




When it came time for former President George W. Bush to retire from the Oval Office, the 43rd President decided to go back to his home state of Texas, picking up a sprawling 8,000-square-foot home at 10141 Daria Pl, which was a downsize from the 55,000-square-foot White House. The Bushes also purchased the property next door but tore it down in 2008. People speculated at the time that the demolition was to expand the former first family’s yard.

Bill Clinton




Unlike many other Presidents, Bill Clinton didn’t own a home during his residency at the White House. Born and raised in Arkansas, the former President and Secretary of State Hillary Clinton chose to stay on the East Coast, and purchased a home in Chappaqua, New York at the end of Clinton’s second term in office. By several accounts, the Clintons are quite popular in the small Westchester County town. Built in 1889, the Clintons’ home is situated on a cul-de-sac lot and has 5,232-square-foot of living space, 5 beds and 4 baths.

Ronald Reagan




Before Ronald Reagan lived at the White House, he lived among the star-studded hills of Pacific Palisades and Bel Air. His former Pacific Palisades property was he and wife Nancy Reagan’s home base until Reagan was elected in 1981. After two terms as the 40th President of the U.S., “The Gipper” and his wife returned to Los Angeles, picking up a prime slice of real estate in the posh Bel-Air neighborhood. The property remains Nancy Reagan’s home today.

Gerald Ford




Not one, but two of former President Gerald Ford’s homes are currently for sale — one listed in California and one in Colorado. Ford’s Vail home, pictured above, is a testament to his love of skiing and the outdoors. Listed for $9.85 million, the ski-in/ski-out home has been on and off the market starting in 2008 with a hefty price tag of $14.9 million. Gerald Ford’s other home is listed on the Rancho Mirage real estate market for significantly less. The $1.699 million listing is a mid-century ranch located on the Thunderbird Country golf course and contains some Presidential memorabilia, including a large portrait of Betty Ford hanging in the living room.

John F. Kennedy




One of America’s most famous families holds one of America’s most storied properties. The Kennedy Compound consists of 6 acres of waterfront property on Nantucket Sound in Hyannis Port, Massachusetts, a small village in the town of Barnstable. John F. Kennedy’s father, Joseph P. Kennedy, rented a summer cottage in Hyannis Port in 1926 and purchased the cottage 2 years later. The home, which Joseph enlarged and remodeled, became the summer getaway for the couple and their children, who enjoyed sailing on the sound. In 1956, after his marriage to Jacqueline Bouvier, Jack bought a smaller home nearby, and his brother Robert later purchased an adjacent home. Following the death of Massachusetts senator Ted Kennedy, the compound was donated to the Edward M. Kennedy Institute.

George Washington




While we don’t have the first President’s childhood home– the one where he chopped down a cherry tree — we do have the home where George Washington reportedly slept. It is believed that the first general hung up his wig at this 1739 homestead, named the “Fowler House.” The number of nights Washington slept here is up for debate, but if you believe the historic marker on the home, he often stayed here on his way from West Point to Connecticut. The New York home is 5,800 square feet and has 5 bedrooms and 2 baths and was recently listed on the Brewster real estate market for $500,000.

Are we missing your favorite President? Check out the homes of Truman, Nixon and more Presidents.

What's hot and not in home styles this year

Courtesty of Yahoo Real Estate

This year's designated New American Home is being featured as part of the International Builder's Show.
Photo: flickr | International Builders' Show

Modern gets the thumbs up.
Spa-like and eco-sensitive, the “New American Home 2012” being unveiled in Orlando this week by the National Association of Home Builders in conjunction with the International Builders’ Show, is a warmer take on the classic “White Box” of mid-20th century modern design.

“A lot of people want a spa feeling and a spa look that’s very analogous to modern,” said Luis Juaregui, a Texas-based American Institute of Architects accredited architect. The 4,200 square foot, $3.5 million gray stone and glass home has free flowing entertaining spaces, floor to ceiling sliding glass doors, a stone staircase with open risers, clear glass balustrades and clean geometric lines, tempered by dark wood cabinets, area rugs and soft furnishings.

Still, to fit into more traditional looking neighborhoods, architects are increasingly going hybrid, mixing distinctly modern, techno-savvy interiors with colonial details, Tudor-style roofs or Craftsman-inspired touches on the exterior.

A home to call one’s own has long been part of the American Dream. But as tastes, technologies and regional preferences change, propelled by demographics and the socio-economic climate, the style, scale and comforts of that coveted real estate evolve.

During the bigger- is-better 1980s and 1990s, homes ballooned in size. Compact single story ranch and cape cod styles gave way to ever grander two-story neo-colonials. When the economic bubble burst, they retrenched. These days, downsizing is cool; supersized McMansions towering over smaller homes are not.

Stephen Melman, director of economic services at the National Association of Home Builders said that houses shrank about 10 percent from their 2,500 square foot peak in 2007, and are expected “to get smaller and more efficient” with open floor plans, master bedrooms on the first floor and dining rooms distinguished only by a chandelier or architectural detail.

One-story ranch homes, post World War II suburbia’s signature easy style, are slowly regaining favor, thanks to first time buyers with tiny tots and aging baby boomers seeking accessibility.
Craftsman style homes, popular before World War II, are also enjoying a revival, said Gary D. Cannella, an architect in Bohemia, N.Y. “It’s the style not the size.” Adaptable to sizable abodes or small bungalows, these one or one and a half story homes boast low-pitched rooflines, tapered columns, oversized eaves, gables and the front porches “that everyone wants and no one sits on.”

The split level, a hallmark of suburbia in the Brady Bunch era, is nearly obsolete. Despite the aerobic benefits of tri-level living, “all you do is walk up and down stairs all day long,” Cannella says. “You can’t go anywhere without steps.”

Here are the hot and not-so-hot home styles for 2012:

What's Hot in 2012

Style: Modern
Price: $399,000 to $29 million


The New American Home in Winter Park, FL looks ready for entertaining.
Photo: flickr | International Builders' Show

Description: Aligned with the mid 20th-century counter classic design movement, modern is characterized by no fuss floor plans with combined dining, relaxing and entertaining spaces, clean, geometric lines, low slung roofs, and technologically advanced materials like concrete, steel and glass.
Why They Are Appealing: Easy, functional and bright, with walls of glass and open spaces, today’s modern is eco-sensitive and forward thinking, with state of the art kitchens and “smart house” technologies, though developers often prefer modern interiors with more traditional skins.
Where You’ll Find Them: Nationwide, with striking examples in the Hamptons, Santa Monica and other tony beach environs.
Style: Neo-Mediterranean
Price: $300,000 to $6 million-plus


Neo-Mediterranean home styles are becoming the Sun Belt standard.
Photo: Jauregui Architect

Description: Red tile roofs, stucco walls, archways, towers and heavy wooden doors with a Spanish or Tuscan flavor.
Why It’s Appealing: The Southern European style and materials work well in warmer climates and match the landscape.

Where You’ll Find It: California, Florida, Texas, Southwest
The Flip Side: While northern European style homes are vanishing from the Sun Belt, in chillier climates such as the Northeast, two story center hall colonials still reign.

Style: Craftsman
Price: $249,000 to $2.8 million


Craftsman-style homes have become an American classic.
Photo: flickr | roarofthefour

Description: Often referred to as Arts and Crafts bungalows, Craftsman-style homes have low-pitched roof lines, overhanging eaves supported by decorative brackets, gables, front porches with tapered square columns, exposed roof rafters, handcrafted wood and stone flourishes.
Why They are Appealing: This one to one and a half story style shouts cozy. With an emphasis on natural materials and decorative details, it works well for larger homes and small bungalows.
Where You’ll Find Them: coast to coast

What's Not So Hot in 2012


Style: McMansions
Price: $350,000 to $10 million +


McMansion's were a sign of success before the bubble burst.
Photo: flickr | FunnyBiz

Description: Sometimes called colonials on steroids or oversized neo-eclectic houses, these super-sized jumbles of styles and decorative details from colonial to Victorian, have brick, stone, vinyl or composite veneers. A product of the latter part of the 20th century and the knock-down era of the bubble before the burst, they often replaced smaller homes on lots not suited to their hulking size.
Why they are not appealing: Pretentious, over-sized energy guzzlers, overshadow surrounding homes and out of sync with the economic climate’s downsizing trend.

The Flip Side: Well-designed mansions on properly sized lots and in appropriate settings such as golf course or lakefront communities are still hot.

Style: Split Levels
Price: $91,900 to $2,850,000


Split-level homes, with many steps, have lost market appeal.
Photo: flickr | Sportsuburban

Description: A Ranch style house divided into at least three parts by short flights of stairs leading up on one side, down on another, dividing entertaining spaces from private areas such as bedrooms and separating formal rooms from more casual playrooms and dens. 


Why they are not appealing: This darling of the 1950s, 60s and 70s is outdated and complicated to maneuver with steps at nearly every turn.
Where You’ll Find Them: 1950s/60s/70s suburban subdivisions nationwide.

Style: Victorian
Price: $299,000 to $2,850,000


Victorian homes are charming, but almost no one builds them like this anymore.
Photo: TBoard

Description: Turrets and towers, wraparound or granny porches and gingerbread trim with Queen Anne, Gothic or Italianate flourishes are the hallmark of these turn- of-the-20th-century two and three story homes with plenty of nooks and crannies.
Why They Are Not Appealing: While it’s hard not to love their colorful eccentricities, Victorians are challenging to rehabilitate or maintain. Their warrens of small rooms aren’t conducive to 21st century lifestyles.
Where You’ll Find Them: Urban neighborhoods, historic districts, small towns, older suburbs 

The Flip Side: Newer neo-eclectic homes borrow whimsical features from true Victorians, touting turrets, towers and porches in maintenance free materials.