September brings the change of seasons. Football players return to the gridiron. New television programs replace summer reruns. In Washington, legislators gear up for another season of legislative brinkmanship.

What distinguishes such brinkmanship from ordinary legislating? Hard deadlines.

Such deadlines force Congress to address policy issues that might otherwise languish due to partisan differences or legislative inertia.

Last spring, for example, the repeated threat of a government shutdown forced Congress to decide how much to spend on government agencies in fiscal 2011. This summer, the debt limit forced Republicans and Democrats to reach a budget compromise before Aug. 3, the day we would have discovered what happens if America can’t pay all its bills.

Hard deadlines thus can force Congress to address major issues. But they also invite that brinkmanship.

Like students who put off writing term papers until the night before they’re due, legislators often drag out negotiations until the very end. As we saw with the debt-limit debate, the ensuing uncertainty – will the United States really default? – can damage consumer, business, and international confidence. Hard deadlines also give leverage to those legislators who are least concerned about going over the brink.

So get ready for the new season. The fall legislative season is full of deadlines that could invite such brinkmanship. Here are five.
Number 1

The first up was the Federal Aviation Administration, whose short-term funding expired Sept. 16. Congress averted a partial shutdown by extending the agency’s funding for four months, avoiding the thousands of furloughs and layoffs that occurred when FAA funding briefly ran out in July.
Number 2

Second is for a much larger item: funding for highways and mass transit. Current authority for these programs expires on Sept. 30. If Congress doesn’t act by then, new federal spending on surface transportation projects will grind to a halt, putting tens of thousands of jobs at risk.

Number 3

Sept. 30 also marks the end of the fiscal year – an especially important deadline. Congress has made woefully little progress in deciding next year’s funding. So we again face the prospect of temporary funding bills being negotiated in the shadow of threatened government shutdowns.

Number 4
The fourth deadline comes on Nov. 23, the day the new “super committee” has to deliver a plan to address government debt and cut the deficit by at least $1.2 trillion over the next decade. If any seven committee members agree by that date, their plan will get special, expedited consideration in the House and Senate.

If the committee fails to reach agreement or Congress fails to enact it by Dec. 23, however, then automatic budget cuts go into effect for a range of programs, including defense, domestic programs, and Medicare, starting in 2013.
Number 5

A final deadline comes at the end of the year, when several economic initiatives are set to expire, including the 2 percent payroll tax holiday and extended unemployment insurance benefits.

Each of these deadlines will command congressional attention. The downside of inaction will be tangible and visible. With renewed concern about jobs, policymakers will feel extra pressure to continue any funding or tax cuts that can be directly linked to employment.

These deadline-driven policy issues will thus dominate the fall legislative season. That will leave little space for any new initiatives that don’t come with a deadline.

Harry Chapin Food Bank and The Salvation Army will provide food to those in need. The Glades County Health Department will made free health screens available and Catholic Charities will assist those eligible for the Food Stamp Program.  United Way 211 will provide information and referral to human services available in the area. Photo and interview opportunities will be plentiful.

The United Way of Hendry and Glades includes 34 local human service agencies. .  These agencies include: The Salvation Army, Catholic Charities, Harry Chapin Food Bank, the Children’s Advocacy Center, Child Care of Southwest Florida, Healthy Families and many others.  The LaBelle United Way House is a part of the United Way network and brings the services of many health and human service agencies to the House.

In addition to raising funds for human service organizations in our community, the United Way promotes partnerships and collaborations among agencies and initiatives, helping them to work together focusing on issues and solutions that continue to improve lives.

The United Way of Lee, Hendry and Glades has been “the way the community cares” since it was established in 1957.  For more information please call United Way of Lee, Hendry and Glades at (239) 433-2000 or visit www.unitedwaylee.org.
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FOOD DISTRIBUTION FLYER ATTACHED

Louise Hawthorne
Communications/Marketing Manager

UNITED WAY OF LEE, HENDRY & GLADES
7273 Concourse Drive
Fort Myers, FL 33908

239-433-2000 Ext. 225
239-433-5692 (FAX)
239-989-7480 (Cell)

Both Lawrence Yun, NAR chief economist, and Mark Zandi, chief economist and co-founder of Moody’s Economy.com, agreed that job creation is key to an economic and housing recovery, with job creation expected as the year progresses, but they differed somewhat on the impact that foreclosures will have on home price stabilization. Both project that mortgage interest rates will remain historically low, the availability of jumbo loans will improve and home sales will rise over the next few years.

On the effect of the home buyer tax credit, Yun said that the broader view would assert that the credit added 1 million buyers, reduced housing inventory by 1 million, and in turn, reduced the supply of housing by two to two-and-a-half months. “This corresponded with a positive home price impact of 5 to 8 percent percentage points,” Yun said. “Stabilizing home prices will limit future foreclosures. But those with a dimmer view would say that billions of dollars were wasted on people who would have bought anyway.”

Yun expects a slightly stronger demand for housing and a fairly even level of foreclosures entering the inventory pipeline before easing in 2011. “We expect distressed home sales to account for 30 to 40 percent of transactions for the remainder of this year,” he said.

Zandi also forecasts improving demand for housing, but with foreclosures rising later in 2010 before easing in 2011. He said home prices may weaken this year. “The housing crash is over—nearly. We are now near the bottom,” he said. “There will be no real price growth in 2010 or 2011. Whether home prices weaken is unclear, but it will take two more years to work off excess housing inventory at the current sales pace. Of course, if demand picks up, it would take less time for prices to rise,” he said.

With improved market fundamentals and rising consumer confidence, Yun thinks home prices could rise 2 to 3 percent this year, but within the next two to three years, he suggests there could be stronger upward pressure on prices from a potential housing shortage because housing construction has fallen significantly below long-term demand.

Zandi said that the Fed won’t raise interest rates until the unemployment rate is heading south, but that deficit spending is the greatest threat to the U.S. economy. “The debt-to-GDP (gross domestic product) ratio is extremely high and troubling, meaning we could have measurably higher interest rates in 2011 and 2012.”

Lawrence Yun, NAR chief economist, said commercial real estate almost always lags the economy. “Because of the lingering impact from the deep recession over the past two years, vacancy rates will trend higher and many commercial property owners will need to make rent concessions,” he said.

“With the job market expected to turn for the better later this year, we’ll see rising demand for office and warehouse space, but that isn’t likely before 2011,” Yun said. “At the same time, improved consumer confidence would help sustain the retail sector and encourage more people to enter the rental market.”

Yun notes that commercial vacancy rates remain high in most market areas and are depressing rents.

The Society of Industrial and Office Realtors®, in its SIOR Commercial Real Estate Index, an attitudinal survey of more than 700 local market experts,¹ suggests a flattening level of business activity in upcoming quarters with 55 percent of members expecting the market to improve in the second quarter.

The SIOR index rose 0.2 percentage point to 35.5 in the fourth quarter, compared with a level of 100 that represents a balanced marketplace. This is the first gain following 11 consecutive quarterly declines. Although some indicators show that a decline in commercial property values is beginning to flatten, 86 percent of respondents report prices are below replacement costs.

Nearly nine in 10 survey participants said new commercial development is virtually nonexistent in their market areas, and rent concessions are reported almost everywhere.

An independent survey earlier this month showed a couple dozen banks are willing to expand commercial credit this year, which is critical. The lending expansion is aided by the Federal Reserve’s Term Asset-Backed Loan Facility, which is encouraging issuance of commercial mortgage-backed bonds. In addition, regulators are prodding lenders to extend terms for many existing commercial loans.

“We have a long way to go for satisfactory levels of commercial credit, but these are important first steps,” Yun said. “Given that about $1.4 trillion in commercial debt will come due over the next three years, more extensive action is needed and the Fed needs to more actively help resuscitate commercial mortgage-backed securities. The credit improvement will mean more commercial property sales in 2010, even some at deeply discounted prices.”

Looking at the overall market, commercial vacancy rates generally will stay at elevated levels, according to NAR’s latest COMMERCIAL REAL ESTATE OUTLOOK.² The NAR forecast for four major commercial sectors analyzes quarterly data in the office, industrial, retail and multifamily markets. Historic data were provided by CBRE Econometric Advisors.

Office Market

With a lot of sublease space currently on the market, vacancy rates in the office sector are forecast to rise from 16.3 percent in the fourth quarter of 2009 to 17.6 percent in the fourth quarter of this year; the longer term outlook is for vacancies to average 17.4 percent in 2011.

Annual office rent is projected to decline 7.2 percent in 2010, following a drop of 12.7 percent last year. In 57 markets tracked, net absorption of office space, which includes the leasing of new space coming on the market as well as space in existing properties, should be a negative 27.3 million square feet in 2010.

Industrial Market

There is proportionately less industrial sublease space on the market than in the office sector, but obsolescence remains a factor. Industrial vacancy rates will probably rise from 13.9 percent in the fourth quarter of last year to 14.9 percent in the closing quarter of 2010; they could average 14.5 percent next year.

Annual industrial rent is likely to fall 9.6 percent this year, after declining 10.9 percent in 2009. Net absorption of industrial space in 58 markets tracked is seen at a negative 93.5 million square feet in 2010.

Retail Market

Retail vacancy rates are expected to edge up from 12.4 percent in the fourth quarter of 2009 to 12.7 percent in the same period of this year, and may hold at that level in 2011.

Average retail rent is forecast to decline 2.4 percent in 2010, following a drop of 4.0 percent in 2009. Net absorption of retail space in 53 tracked markets should be a negative 3.4 million square feet this year.

Multifamily Market

The apartment rental market – multifamily housing – is poised to gain from a rise in household formation. Multifamily vacancy rates are likely to decline from 7.4 percent in the fourth quarter of last year to 6.6 percent in the fourth quarter of 2010, and possibly edge down to 6.1 percent next year.

Average rent is projected to decline 3.4 percent this year, following a decline 3.6 percent in 2009. Multifamily net absorption is expected to be 115,000 units in 59 tracked metro areas this year.

The COMMERCIAL REAL ESTATE OUTLOOK is published by the NAR Research Division for the commercial community. NAR’s Commercial Division, formed in 1990, provides targeted products and services to meet the needs of the commercial market and constituency within NAR.

The NAR commercial components include commercial members; commercial committees, subcommittees and forums; commercial real estate boards and structures; and the NAR commercial affiliate organizations – CCIM Institute, Institute of Real Estate Management, Realtors® Land Institute, Society of Industrial and Office Realtors®, and Counselors of Real Estate.

More than 81,000 NAR and institute affiliate members offer commercial brokerage services.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

# # #

Sales increased from the third quarter in 48 states and the District of Columbia; 32 states saw double-digit gains. Year-over-year sales were higher in 49 states and D.C.; all but three states had double-digit annual increases.

Total state existing-home sales, including single-family and condo, jumped 13.9 percent to a seasonally adjusted annual rate ¹ of 6.03 million in the fourth quarter from 5.29 million in the third quarter, and are 27.2 percent above the 4.74 million-unit level in the fourth quarter of 2008. Distressed property accounted for 32 percent of fourth quarter transactions, down from 37 percent a year earlier.

Lawrence Yun , NAR chief economist, said the first-time home buyer tax credit was the dominant factor. “The surge in home sales was driven by buyers responding strongly to the tax credit combined with record low mortgage interest rates,” he said. “With inventory levels trending down over the past 18 months, we expect broadly balanced housing market conditions in much of the country by late spring with more areas showing higher prices.”

According to Freddie Mac, the national average commitment rate on a 30-year conventional fixed-rate mortgage fell to a record low 4.92 percent in the fourth quarter from 5.16 percent in the third quarter; it was 5.86 percent in the fourth quarter of 2008.

In the fourth quarter, 67 out of 151 metropolitan statistical areas ² reported higher median existing single-family home prices in comparison with the fourth quarter of 2008, including 16 with double-digit increases; one was unchanged and 84 metros had price declines. In the third quarter only 30 MSAs showed annual price increases and 123 areas were down.

The national median existing single-family price was $172,900, which is 4.1 percent below the fourth quarter of 2008; the median is where half sold for more and half sold for less. “This is the smallest price decline in over two years, with the most recent monthly data showing a broad stabilization in home prices,” Yun said.

“Because buyers are taking on long-term fixed rate mortgages, avoiding adjustable-rate products, and trying to stay well within their budgets, the price recovery process appears durable,” Yun said.

NAR President Vicki Cox Golder , owner of Vicki L. Cox & Associates in Tucson, Ariz., said near-term market conditions will remain favorable. “Mortgage interest rates are expected to trend up later this year, but right now we have very good conditions with steadying home prices and favorable inventory in most areas, especially in the higher price ranges,” she said.

“The biggest issue is for repeat buyers, who will have to accelerate their buying plans if they want the expanded tax credit. Since you must have a contract in place by the end of April, the best advice is to consult a Realtor ® now about qualification criteria and options in your area,” Golder said.

Scam: Advertisers offer kits that enable home workers to make money posting links on the Internet.

Example:

If you live in Canada or the US and you have been wanting to work from home, you might be in luck. Google has now released a new ‘Work From Home Program’ that will allow Americans to work for the titan from the comfort of their own homes.

To thousands of North Americans this means that they will soon have a safe and bright future working for one of the fastest growing companies in the world.

In the middle of this recession this country and the world is going through, Google has been thriving and reporting profits consistently every quarter.

Completely innovating the Search Engine industry in the late 1990′s, Google has had a history of development and innovation, and another one is about to come.

Google has now opened it’s doors and will be hiring everyday people to work from the comfort of their own homes posting links. The way this works is Google will allow people to signup and receive a package which will contain all the step by step instructions to get setup from home.

This will allow Google to hire talent in places like Canada that would otherwise be unreachable and compensate them based on results on a long term basis.

What you need: A Computer, an Internet Connection and the desire to make a living working from home. No special skills are required other than knowing how to use a computer and navigate the internet.

Mary, a mother from Toronto, who worked with Google in the experimental parts of this program, is thriving, in the middle of an economic recession, working in the comfort of her own home with Google.

From her website: ‘I get paid about $25 USD for every link I post on Google and I get paid every week… I make around $5500 USD a month right now’

Google has now officially released their new ‘work from home’ system out to the public. There will be thousand of spots available that are expected to go very soon in the next few days.

The way this works is very simple, Google says.

First you will need to apply for their work from home kits. Google has release a limited amount of kits, all distributed through local websites in your area throughout US and Canada, which will cost $2 of shipping and handling to the public.

Google says this charge is made to cover shipping costs but also to separate the people that are serious about working with them through this program.

Once you have ordered your kit (if you are one of the lucky few to get availability in your area) then you will receive a package that will contain all the instructions you need to start working from home for the online titan.

This kit will show you all you need to know, Google says. You will be performing simple and straightforward tasks such as posting links. ‘Anybody with basic computer skills will be able to perform these tasks’ adding to that they say that ‘We understand the psychology of working from home and we want to give our employees tasks that are simple and easy, and reward them generously in order to keep them motivated.’

Is this worth quitting your job? If you’re lucky enough to receive a kit, you might not even have to.

‘We start off our work from home program only requiring 1-2 hours a day of work, earning a great income from the start. This way our work from home employees will see the benefit and start devoting more and more time each day and their salaries will increase accordingly’ Google reports.

Although they are going very fast since their release earlier today, thousands of positions are still available at the time of this writing.

To apply for a job working from home for Google here are the three steps:

Step 1: Get the Google Work From Home Kit, only pay the $2.95 for shipping. (The shipping cost allows Google to screen for serious people).

Step 2: Follow the directions on your package and set up a Google account. Then they will give you the website links to post. Start posting those links. Google tracks everything.

Step 3: Google will send out your checks weekly. Or you can start to have them wire directly into your checking account. (Your first checks will be about $750 to $1,500 a week. Then it goes up from there. Depends on how many links you posted online.)
Variations: In December 2009 we began encountering a Yahoo version of the scam, which was the same as the Google scam discussed below, just with Yahoo’s name inserted in place of Google’s.

Origins: Those searching for employment opportunities that will allow them to work from home are all too often the very people who can least afford to be defrauded. Although many folks daydream about earning livable incomes from the comfort of their dens rather than having to make the trek to their offices each day, they do not as a general rule of thumb search for such job openings with the same fervor as do the elderly, the physically challenged, or parents committed to remaining at home with their preschool children. Members of those groups hunt for work-at-home opportunities because laboring in more traditional job settings is impossible for them. Because genuine offers of work of this nature are few and far between, with the need to secure a steady income becoming more of a pressing issue with each passing non-employed day, those folks are at far greater risk of being victimized by such schemes; their desperation leads them to be gulled by pie-in-the-sky promises and mollified by the wild backstories that go with them, while the financially better off

are more likely to remain convinced something is very wrong with the offer of mucho bucks in exchange for only a few hours’ labor performed from home each week by persons possessed of no special training or skills.

In 2009 a proliferation of seeming newspaper articles touting “Google Job Opportunities,” “Google Money Master,” “Easy Google Profit,” “Google Cash Kit,” “Google Fortune Kit,” and the like began popping up on the Internet. Such come-ons are typically emblazoned with “As seen on” taglines followed by an impressive array of logos, including those of ABC, AOL, CNN, MSNBC, and USA Today. Often these come-ons include what appear to be tearsheets from legitimate-looking publications, such as the New York Tribune and Los Angeles Tribune.

As for the publications supposedly reporting these stories, while there was a New York Tribune long ago, in 1924 it merged with the New York Herald to form the New York Herald Tribune. (Even that newspaper is no longer around; it went out of business in 1967.) As for the ostensible Los Angeles Tribune, that paper is wholly fictional; it existed only in the television show Lou Grant.

Web pages purporting to be personal reports of riches reaped through these programs have also popped up, such as the now defunct BryansMoneyBlog.com. They too were the same sort of come-on.

While the promise of vast riches to be gained through working from home is held out to those seeking an answer to their financial problems, that promise is but the worm used to entice the fish into biting down on the hook. Those who sign up for such kits will not soon find themselves on Easy Street; instead, they will find their bank accounts tapped to the tune of approximately $80 a month.

While prospective job seekers are told they need to pay a $2 charge for kits that supposedly contain the step-by-step instructions on how to begin working from home (often explained as Google’s way of sifting the serious from non-serious candidates), a closer examination of the Terms and Conditions associated with the programs applicants are signing up for reveals they are instead authorizing monthly charges either to their bank accounts or credit cards, usually to the tune of about $80 a month. Those who attempt to cancel these charges find the task a difficult one, in that only rarely does anyone at the phone number supplied for that purpose actually come onto that line.

Those still not convinced they haven’t just found the answer to their prayers are invited to closely examine the various web page come-ons. Usually, buried at the bottom of the page in fine print is a statement to the effect that “Google is in no way associated with this website.”

Barbara “web slight of hand” Mikkelson

How to Avoid Falling Victim to ‘Work From Home’ Scams:

• Don’t pay a company to hire you, not even if such payment is presented as your buying necessary training materials, obtaining required certification, or registering with databases of available workers. Remember, if the process involves your sending your “employers” money, it’s probably a scam.
• If you have questions about the legitimacy of a job listing, contact your Better Business Bureau, your state or local consumer agency, or the Federal Trade Commission.
• Examine your credit card and bank account statements every month, keeping an eye peeled for unauthorized charges. Immediately challenge items you did not approve.

December Foreclosure Actions Mark Tenth Straight Month of Over 300,000 Notices
and Drive Yearly Total to Over 3.9 million Foreclosure Filings

IRVINE, Calif. – Jan. 14, 2010 – RealtyTrac® (www.realtytrac.com), the leading online marketplace for foreclosure properties, today released its Year-End 2009 Foreclosure Market Report™, which shows a total of 3,957,643 foreclosure filings — default notices, scheduled foreclosure auctions and bank repossessions — were reported on 2,824,674 U.S. properties in 2009, a 21 percent increase in total properties from 2008 and a 120 percent increase in total properties from 2007. The report also shows that 2.21 percent of all U.S. housing units (one in 45) received at least one foreclosure filing during the year, up from 1.84 percent in 2008, 1.03 percent in 2007 and 0.58 percent in 2006.

Foreclosure filings were reported on 349,519 U.S. properties in December, a 14 percent jump from the previous month and a 15 percent increase from December 2008 — when a similar monthly jump in foreclosure activity occurred. Despite the increase in December, foreclosure activity in the fourth quarter decreased 7 percent from the third quarter, although it was still up 18 percent from the fourth quarter of 2008.

“As bad as the 2009 numbers are, they probably would have been worse if not for legislative and industry-related delays in processing delinquent loans,” said James J. Saccacio, chief executive officer of RealtyTrac. “After peaking in July with over 361,000 homes receiving a foreclosure notice, we saw four straight monthly decreases driven primarily by short-term factors: trial loan modifications, state legislation extending the foreclosure process and an overwhelming volume of inventory clogging the foreclosure pipeline.

“Despite all the delays, foreclosure activity still hit a record high for our report in 2009, capped off by a substantial increase in December,” Saccacio continued. “In the long term a massive supply of delinquent loans continues to loom over the housing market, and many of those delinquencies will end up in the foreclosure process in 2010 and beyond as lenders gradually work their way through the backlog.”

Comment on this report.

Nevada, Arizona, Florida post top state foreclosure rates in 2009
More than 10 percent of Nevada housing units received at least one foreclosure filing in 2009, giving it the nation’s highest state foreclosure rate for the third consecutive year. Nevada foreclosure activity in December increased 27 percent from the previous month but was still down 22 percent from December 2008. Fourth quarter foreclosure activity in Nevada was down 37 percent from the previous quarter thanks to substantial decreases in October and November.

Arizona registered the nation’s second highest state foreclosure rate in 2009, with more than 6 percent of its housing units receiving at least one foreclosure filing during the year, and Florida registered the nation’s third highest foreclosure rate, with 5.93 percent of its housing units receiving at least one foreclosure filing during the year.

Other states with 2009 foreclosure rates ranking among the nation’s 10 highest were California (4.75 percent), Utah (2.93 percent), Idaho (2.72 percent), Georgia (2.68 percent), Michigan (2.61 percent), Illinois (2.50 percent), and Colorado (2.37 percent).

California, Florida, Arizona, Illinois account for 50 percent of national total
Four states accounted for more than 50 percent of the nation’s 2009 total, with more than 1.4 million properties receiving a foreclosure filing in California, Florida, Arizona and Illinois combined.

A total of 632,573 California properties received a foreclosure filing in 2009, the nation’s largest state foreclosure activity total and an increase of nearly 21 percent from 2008. After four straight month-over-month declines, California foreclosure activity in December increased nearly 9 percent from the previous month, but the state’s fourth quarter foreclosure activity was still down 17 percent from the previous quarter.

Florida posted the nation’s second largest total, with 516,711 properties receiving a foreclosure filing in 2009 — a 34 percent increase from 2008. The state’s fourth quarter foreclosure activity was down nearly 9 percent from the previous quarter despite a 4 percent monthly increase in foreclosure activity in December.

Arizona foreclosure activity in December spiked 40 percent from the previous month, helping the state post the third largest foreclosure activity total for the year. A total of 163,210 Arizona properties received a foreclosure filing in 2009, a nearly 40 percent increase from 2008.

A total of 131,132 Illinois properties received a foreclosure filing in 2009, the nation’s fourth largest total and an increase of nearly 32 percent 2008. The state’s fourth quarter foreclosure activity increased nearly 29 percent from the previous quarter, and the state’s December foreclosure activity was up nearly 9 percent from the previous month.

Other states with 2009 totals among the 10 highest in the country were Michigan (118,302), Nevada (112,097), Georgia (106,110), Ohio (101,614), Texas (100,045), and New Jersey (63,208).

Report methodology
The RealtyTrac U.S. Foreclosure Market Report provides a count of the total number of properties with at least one foreclosure filing entered into the RealtyTrac database during the year — broken out by type of filing by state, county and metropolitan statistical area. Some foreclosure filings entered into the database during the year may have been recorded in previous years. Data is collected from more than 2,200 counties nationwide, and those counties account for more than 90 percent of the U.S. population. RealtyTrac’s report incorporates documents filed in all three phases of foreclosure: Default — Notice of Default (NOD) and Lis Pendens (LIS); Auction — Notice of Trustee Sale and Notice of Foreclosure Sale (NTS and NFS); and Real Estate Owned, or REO properties (that have been foreclosed on and repurchased by a bank). If more than one foreclosure document is received for a property during the year, only the most recent filing is counted in the report.

U.S. Foreclosure Market Data by State – 2009 Totals

*Actual increase may not be as high due to data collection changes or improvements
**Collection of records classified as NOD began in August 2009 because of change in state law
† Collection of some records previously classified as NOD in this state was discontinued starting in January 2009
†† Collection of some records previously classified as NOD in this state was discontinued starting in September 2008

About RealtyTrac Inc.
RealtyTrac (http://www.realtytrac.com/) is the leading online marketplace of foreclosure properties, with more than 1.5 million default, auction and bank-owned listings from over 2,200 U.S. counties, along with detailed property, loan and home sales data. Hosting more than 3 million unique monthly visitors, RealtyTrac provides innovative technology solutions and practical education resources to facilitate buying, selling and investing in real estate. RealtyTrac’s foreclosure data has also been used by the Federal Reserve, FBI, U.S. Senate Joint Economic Committee and Banking Committee, U.S. Treasury Department, and numerous state housing and banking departments to help evaluate foreclosure trends and address policy issues related to foreclosures. RealtyTrac publishes a blog with daily updates on the foreclosure market (www.foreclosurepulse.com) and a monthly print newsletter covering the foreclosure market in depth (www.foreclosurenewsreport.com).

Nationally, the sales of existing-homes rose again in November as first-time buyers rushed to close sales before the original November 30 deadline for the recently extended and expanded tax credit, according to the National Association of Realtors®.

Existing home sales, including single-family, townhomes, condominiums and co-ops – rose 7.4 percent to a seasonally adjusted annual rate¹ of 6.54 million units in November from 6.09 million in October, and are 44.1 percent higher than the 4.54 million-unit pace in November 2008. Current sales remain at the highest level since February 2007 when they hit 6.55 million.

In Lee County we saw the same trend. The median price of a single-family home sold with the assistance of a Realtor jumped 3.8 percent from $91,600 in October to $95,100 in November while the number of sales increased 8.3 percent from 1,413 to 1,530, according to statistics released Tuesday by the Florida Association of Realtors.

Compared with a year ago, the number of houses was more than double the 656 sold in November 2008. The median price, however, was down 13 percent from November 2008’s $109,900.

Lawrence Tun, NAR chief economist, said the rise was expected. “This clearly is a rush of first-time buyers not wanting to miss out on the tax credit, but there are many more potential buyers who can enter the market in the months ahead,” he said. “We expect a temporary sales drop while buying activity ramps up for another surge in the spring when buyers take advantage of the expanded tax credit, which hopefully will take us into a self-sustaining market in the second half of 2010. In all, 4.4 million households are expected to claim the tax credit before it expires and balance should be restored to the housing sector with inventories continuing to decline.”

An NAR practitioner survey² shows first-time buyers purchased 51 percent of homes in November, compared with an upwardly revised 50 percent of transactions in October.

According to Freddie Mac, the national average committment rate for a 30-year, conventional, fixed-rate mortgage fell to 4.88 percent in November from 4.95 percent in October; the rate was 6.09 percent in November 2008. Last month’s mortgage interest rate was the second lowest on record after bottoming at 4.81 percent in April 2009.

On a seasonally adjusted basis, the Consumer Price Index for All Urban Consumers (CPI-U) rose 0.4
percent in November, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months the
index increased 1.8 percent before seasonal adjustment, the first positive 12-month change since
February 2009.

The seasonally adjusted increase in the all items index was due to a 4.1 percent increase in the energy
index. The index for gasoline rose sharply and the indexes for electricity, fuel oil, and natural gas also
increased, creating the fourth consecutive rise in the energy index and the largest increase since August.
In contrast, the index for all items less food and energy was unchanged in November, after ten
consecutive monthly increases. Declines in shelter indexes offset increases in the indexes for new and
used motor vehicles, medical care, airline fares, and tobacco.

The food index rose slightly in November. As in October, the food away from home index rose
modestly while the index for food at home was unchanged. Within the latter, three grocery store food
groups posted increases while three declined.

Food

The food index rose 0.1 percent in November, the same increase as in October. The index for food away
from home increased 0.2 percent while the food at home index was unchanged. Among the food at home
groups, the dairy and related products index declined 0.7 percent in November after rising 1.0 percent in
October, and the index for other food at home also declined in November following an October increase.
In contrast, the indexes for fruits and vegetables and for meats, poultry, fish, and eggs both increased in
November after declining in October. The index for nonalcoholic beverages fell for the second straight
month, declining 0.3 percent in November, and the index for cereals and bakery products rose 0.1
percent in November after being unchanged in October. Over the past year, the food index has declined
0.7 percent. The food at home index has fallen 2.9 percent over the last 12 months, with five of the six
grocery store food groups declining, but the index for food away from home has risen 2.1 percent.

Energy

The energy index rose 4.1 percent in November after increasing 1.5 percent in October. The index for
energy commodities rose 6.3 percent, with the gasoline index increasing 6.4 percent. (Before seasonal
adjustment, gasoline prices rose 4.1 percent in November.) The rise in the gasoline index accounted for
over three-quarters of the total energy increase. The remainder of the increase was due to advances in all
of the other energy components. The index for fuel oil rose 9.0 percent in November following a 6.3
percent increase in October. The index for energy services increased 1.4 percent in November, with the
electricity index rising 1.4 percent and the index for natural gas advancing 1.5 percent. The energy index
has risen 7.4 percent over the past 12 months, with the gasoline index rising 23.6 percent.

All items less food and energy

The index for all items less food and energy was unchanged in November after rising 0.2 percent in
October. The heavily weighted index for shelter, unchanged in October, declined 0.2 percent in
November. Within the shelter group, the indexes for rent and owners’ equivalent rent both declined 0.1
percent and the lodging away from home index fell 1.5 percent. Also declining in November were the
indexes for household furnishings and operations and for apparel, both down 0.3 percent. Several
indexes posted increases to offset these declines. The new vehicles index rose 0.6 percent in November,
its tenth increase in the last eleven months. The index for used cars and trucks advanced 2.0 percent in
November and has now risen 11.1 percent since April. The index for airline fares rose 3.8 percent in
November and has increased 13.3 percent since June. The medical care index increased 0.3 percent in
November and the index for tobacco advanced 1.0 percent. Over the past 12 months, the index for all
items less food and energy has risen 1.7 percent.

Not seasonally adjusted CPI measures

The Consumer Price Index for All Urban Consumers (CPI-U) increased 1.8 percent over the last 12
months to an index level of 216.330 (1982-84=100). For the month, the index increased 0.1 percent
prior to seasonal adjustment.

Existing-home sales – including single-family, townhomes, condominiums and co-ops – surged 10.1 percent to a seasonally adjusted annual rate1 of 6.10 million units in October from a downwardly revised pace of 5.54 million in September, and are 23.5 percent above the 4.94 million-unit level in October 2008. Sales activity is at the highest pace since February 2007 when it hit 6.55 million.

Lawrence Yun, NAR chief economist, was surprised at the size of the gain. “Many buyers have been rushing to beat the deadline for the first-time buyer tax credit that was scheduled to expire at the end of this month, and similarly robust sales may be occurring in November,” he said. “With such a sale spike, a measurable decline should be anticipated in December and early next year before another surge in spring and early summer.”

Now that the tax credit has been extended and expanded, potential buyers have until April 30 to have a contract in place. “There is still a large pent-up demand that can be tapped before the tax credit expires. Our recent consumer survey further shows that 13 percent of successful first-time buyers had a previous contract that was cancelled or fell through – there likely are many more buyers who were attempting to purchase but simply ran out of time,” Yun said.

Historically low interest rates also are boosting the market. “Mortgage interest rates last month were the third lowest on record dating back to 1971,” Yun noted. According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 4.95 percent in October from 5.06 percent in September; the rate was 6.20 percent in October 2008. Last week, Freddie Mac reporter the 30-year rate dropped to 4.83 percent.

NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz., said strong demand by first-time buyers is creating some unusual conditions. “In parts of the country, especially in Southwestern states but also in Florida and suburban Washington, D.C., we’ve been getting many reports of multiple bids in the lower price ranges with foreclosed properties getting absorbed quickly,” she said.

“In fact, low-end inventory has become very tight in many areas and in some cases buyers are becoming more aggressive. In this kind of environment it’s important to work with a Realtor® who can walk you through the process and help you negotiate a satisfactory deal,” Golder said.

Total housing inventory at the end of October fell 3.7 percent to 3.57 million existing homes available for sale, which represents a 7.0-month supply2 at the current sales pace, down from an 8.0-month supply in September. Unsold inventory totals are 14.9 percent below a year ago.
“The supply of homes on the market is now at the lowest level in over two-and-a half years – we’re getting closer to a general balance between buyers and sellers,” Yun said. The last time the relative housing inventory was this low was in February 2007 when it also was at a 7.0-month supply.

The national median existing-home price3 for all housing types was $173,100 in October, down 7.1 percent from October 2008. Distressed properties, which accounted for 30 percent of sales in October, continue to downwardly distort the median price because they usually sell at a discount relative to traditional homes in the same area.

“In the second half of 2010, if home values show consistent stabilization or even a modest increase, then home sales could remain at normal healthy levels because consumers would no longer be worried about a price overcorrection,” Yun said.
He added that low home prices also are contributing to extremely favorable affordability conditions. “With the abnormal drop in home prices over the past few years, the price-to-income ratio has fallen below the historic trend line,” Yun said. “This is adding to the buying power of the typical family, with affordability conditions this year at the highest on record dating back to 1970, but prices are beginning to flatten and are poised to rise next year.”

Single-family home sales rose 9.7 percent to a seasonally adjusted annual rate of 5.33 million in October from a pace of 4.86 million in September, and are 21.4 percent above the 4.39 million-unit pace in October 2008. The median existing single-family home price was $173,100 in October, down 6.8 percent from a year ago.
Existing condominium and co-op sales surged 13.2 percent to a seasonally adjusted annual rate of 770,000 units in October from 680,000 in September, and are 40.8 percent above the 547,000-unit level a year ago. The median existing condo price4 was $172,900 in October, which is 10.4 percent below October 2008.

Regionally, existing-home sales in the Northeast rose 11.6 percent to an annual level of 1.06 million in October, and are 27.7 percent higher than October 2008. The median price in the Northeast was $235,400, down 2.6 percent from a year ago.
Existing-home sales in the Midwest surged 14.4 percent in October to a pace of 1.43 million and are 28.8 percent above a year ago. The median price in the Midwest was $146,600, a gain of 1.1 percent from October 2008.

In the South, existing-home sales rose 12.7 percent to an annual level of 2.30 million in October and are 25.7 percent higher than October 2008. The median price in the South was $151,100, down 6.3 percent from a year ago.
Existing-home sales in the West increased 1.6 percent to an annual rate of 1.31 million in October and are 12.0 percent above a year ago. The median price in the West was $220,200, which is 14.7 percent below October 2008.