lies, damn lies and statistics

2012-01-25T15:47:00.001-08:00

Manier and Exton updated their studies of the Middle Tennessee real estate market to include a 2011 year end analysis. Reports provide detailed information by neighborhood on change in prices, sales rates and inventories. Included is a detailed analysis of high priced homes. A new report looks at change in value based on price per square foot. See http://exton.biz/

2012-01-03T06:16:00.000-08:00

Nashville-area office tenants signed on for more than 730,000 square feet of extra space in 2011, according to the fourth-quarter report by brokerage Cassidy Turley. That number — with the lion's share being split by the Central Business District, Brentwood and Cool Springs — was down a bit from 2010 but enough to push the region's vacancy rate to its lowest point in three years. (See the graph below.)
Cassidy Turley's prediction: Look for rents to rise in 2012, albeit rather slowly, and for developers to break ground on a number of projects.
There are some noteworthy positives on the industrial side of things as well:
• Companies absorbed more than 3.9 million square feet of space, the most since 2006. "This comes off the heels of a bleak 2009 and 2010, when the market took a nosedive and posted a combined total of negative 6.5 million SF."
• The upward leasing trend should continue in 2012, driven in part by the resurgent automotive sector. The Cassidy Turley pros say asking rents and landlord concessions should begin to stabilize — warehouse rents are down almost 8 percent since mid-year while vacancy rates haven't budged.

http://nashvillepost.com/blogs/postbusiness/2012/1/3/regions_real_estate_markets_carrying_momentum_in_12

New mortgage limit may hurt home sales | The Tennessean | tennessean.com

2011-09-20T09:24:00.000-07:00

New mortgage limit may hurt home sales The Tennessean tennessean.com

“Any loan amount over that cap is going to mean a higher cost to borrowers,” real estate appraiser Richard Exton said. “We still have quite an inventory of homes in that $550,000 to $750,000 range, so making it harder to buy those homes is not going to be a good thing.”

Manier and Exton Updates Studies with 2010 Year End Data

2011-01-30T12:27:00.000-08:00

Manier and Exton has updated their studies of MLS data for Nashville and Middle Tennessee and includes year end 2010 data. Studies include Annual Price Change, Inventory Levels, Days on Market, as well as Sales Rates and Inventories for High Priced Homes.

Visit www.exton.biz for complete information.

Nashville area home foreclosures continue to rise | Nashville Business Journal

2011-01-13T14:35:00.000-08:00

Nashville area home foreclosures continue to rise Nashville Business Journal

Home foreclosure rates in the Nashville area increased in October compared to one year prior, according to data released today by CoreLogic.

According to the data, 1.58 percent of outstanding mortgages were in foreclosure in October, an increase of 0.33 percentage points over October 2009. It marks the fourth consecutive month in which the local foreclosure rate has increased.Read more: Nashville area home foreclosures continue to rise Nashville Business Journal

Who Wants a 30-Year Mortgage? - NYTimes.com

2011-01-06T06:14:00.000-08:00

From the the New York Times is a 30 year mortgage a thing of the past? Thats what the Republicans want.

Who Wants a 30-Year Mortgage? - NYTimes.com

Mapping America — Census Bureau 2005-9 American Community Survey - NYTimes.com

2010-12-15T13:28:00.000-08:00

Mapping America — Census Bureau 2005-9 American Community Survey - NYTimes.com

Very Cool

Real estate health: Nashville's 'underwater' mortgage rate flat | Nashville Business Journal

2010-12-13T13:19:00.000-08:00

Real estate health: Nashville's 'underwater' mortgage rate flat Nashville Business Journal

The number of Nashville-area homeowners with negative equity — meaning they owe more on their mortgage than their home is worth — remained flat in the third quarter despite a slight decrease nationwide, according to data released today by CoreLogic .

But Nashville's numbers remain far better than the nation's overall.

Read more: Real estate health: Nashville's 'underwater' mortgage rate flat Nashville Business Journal

Manier and Exton Updates Market Reports

2010-08-08T12:35:00.000-07:00

Manier and Exton has updated is Market Reports for select Middle Tennessee markets as of 8/8/2010. The reports can be found at http://exton.biz/

Wall St. Hiring in Anticipation of an Economic Recovery - NYTimes.com

2010-07-11T07:46:00.000-07:00

Wall St. Hiring in Anticipation of an Economic Recovery - NYTimes.com

While much of the country remains fixated on the bleak employment picture, hiring is beginning to pick up in the place that led the economy into recession — Wall Street. MORE

The financial reform bill and appraisers

2010-06-29T07:42:00.000-07:00

The "Dodd-Frank Wall Street Reform and Consumer Protection Act" passed a joint House/Senate conference committee was sent to Congress for voting.

Hopefully, the bill will be approved by Congress this week. The bill makes changes to FIRREA, RESPA, and other regulations. In particular, an amendment backed by the Appraisal Institute and its partner professional appraisal organizations was accepted by the House-Senate Conference Committee last week that effectively defines “cram downs” of appraiser fees as an “unfair and deceptive” practice under the Truth in Lending Act. Under the amendment included in the final Conference Report, evidence of “customary and reasonable” fees would include government fee schedules and independent studies that exclude appraisal orders from known appraisal management companies.

Other significant provisions within the Conference Report include:
• Establishment of a federal appraisal independence standard, sunsetting the HVCC
• Provisions to separate AMC and appraisal fees on the HUD-1 Statement
• State AMC registration requirements
• Enhanced appraiser competency provisions, including clarification regarding consideration of professional appraisal designations
• Financial resources for oversight and enforcement

Click here to read the full Dodd Bill (appraisals start on page 2205)

The United States is projected to grow by 3.1 percent

2010-04-21T08:00:00.000-07:00

The world economy is rebounding from recession "better than we thought likely" and will expand by more than 4 percent this year, the International Monetary Fund's top economist says.

The United States is projected to grow by 3.1 percent -- better than the 2.3 percent average growth projected by the IMF for the advanced economies.

For more information, visit washingtonpost.com:
http://link.email.washingtonpost.com/r/AADB45/BA781/GK4RGU/JLEEO7/EJWYP/UP/t

Money crunch hits high-dollar houses | tennessean.com | The Tennessean

2010-04-05T07:46:00.000-07:00

Money crunch hits high-dollar houses | tennessean.com | The Tennessean

24 Percent of U.S. Homes Underwater

2010-03-03T15:30:00.000-08:00

24 Percent of U.S. Homes Underwater

The number of residential properties nationwide with mortgages that were "underwater" at the end of 2009 rose by 3 million over year-end 2008, according to a First American CoreLogic report released Feb. 23. An additional 620,000 properties fell into negative equity in the fourth quarter alone, bringing to 11.3 million (or 24 percent) the 2009 total. That marks an uptick from the 23 percent represented by the 10.7 million underwater mortgages at the end of the third quarter, according to MSN Money.

Overall, the problem loans remain concentrated in five states: Nevada, with 70 percent of home mortgages underwater; followed by Arizona, with 51 percent underwater; Florida at 48 percent; Michigan at 39 percent; and California at 35 percent. Those states were in stark contrast with the lowest three: Iowa with 9 percent of home mortgages, New York with 6.3 percent and Oklahoma with 6 percent, according to MSN Money.

California (2.4 million) and Florida (2.2 million) have the largest number of negative equity mortgages, accounting for 41 percent of all negative equity loans, according to MSN Money.

Despite bleak findings in the First American CoreLogic report, a Standard & Poor's/Case-Shiller report released Feb. 23 showed that home prices increased modestly in December. The Standard & Poor's/Case-Shiller index of home prices in 20 metropolitan areas rose 0.3 percent in December, the index's seventh consecutive monthly increase, MSN Money reported.

Zillow Values No More Accurate Than Homeowners' Estimates: The Appraisal Journal

2010-03-03T06:30:00.000-08:00

CHICAGO (Feb. 25, 2010)- Estimates of home values from Zillow.com may be no more accurate than homeowners' estimates of value, according to a new study in The Appraisal Journal's Winter 2010 issue.
The Appraisal Journal is the quarterly technical and academic publication of the Appraisal Institute, the nation's largest association of real estate appraisers. (The materials presented in the publication represent the opinions and views of the authors.)

"Zillow's Estimates of Single-Family Housing Values," by Daniel R. Hollas, Ph.D., Ronald C. Rutherford, Ph.D., and Thomas A. Thomson, Ph.D., examines how Zillow's estimates of value, known as Zestimates, compare to actual sale prices. Zillow.com is an automated valuation model Web site.

The authors looked at home sales in Arlington, Texas, a location where Zillow has indicated its data has the highest accuracy level. The authors' study found that 40 percent of the homes in the sample were overvalued by Zillow by more than 10 percent compared to actual sale prices. The study's authors suggested that Zillow may not take into account the occupancy of properties, which has been shown to affect sale prices.

Other studies have shown that on average homeowners' overestimate the values of their homes by 5.1 percent and new owners overvalue their homes by about 8.4 percent. The authors conclude, therefore, that while Zillow is a helpful tool, it may not be more accurate than the owners' own estimates of value.

Home Prices Expected to Drop Another 11 Percent before Rising in Mid-2010

2009-10-22T07:48:00.000-07:00

Home Prices Expected to Drop Another 11 Percent before Rising in Mid-2010

The national median home price is expected to drop an additional 11.3 percent before bottoming in June 2010, according to financial information and analysis firm Fiserv. After bottoming out, Fiserv predicts some stabilization and then a slight increase in value of 3.6 percent. Mark Zandi, chief economist with Moody’s Economy.com, agrees with Fiserv. “I think more price declines are coming because the foreclosure crisis is not over,” Zandi told CNN/Money.com.

Over the next year, Fiserv noted that prices will drop in 342 of the 381 markets. Miami is expected to take the heaviest hit, with prices falling 29.9 percent by next June in addition to the 48 percent drop in value the market had during the past three years. By June 2011, the median home price in Miami is expected to be $142,000.

Other areas expected to have significant drops in value include Orlando, Fla., with a fall of 27 percent; Hanford, Calif., with a drop of 26.9 percent; Naples, Fla., with a decrease of 26.8 percent; Las Vegas, with a drop of 23.9 percent; and Phoenix, with a fall of 23.4 percent.

Fiserv’s outlook differs from the S&P/Case-Shiller Home Price Index, which suggests that the housing market already may be stabilizing after increasing 3.6 percent since May 2009. Brad Hunter, chief economist at Metrostudy, told CNN/Money that he agrees with Fiserv. “I’m afraid Case-Shiller may be just a temporary reprieve,” Hunter said, pointing out that a wave of foreclosures will soon hit that will cause home values to decrease, and that the first-time home buyer tax credit has been skewing current housing data.

Fiserv noted that 33 markets will actually post gains over the next year while six will remain flat. With an expected increase of 3.4 percent, the Kennewick, Wash., metro area is expected to fair the best. Following closely behind are Fairbanks and Anchorage, Alaska, which are expected to increase 2.5 percent and 2.1 percent, respectively, and Elmira, N.Y., which is expected to increase 1.8 percent.

Prices in New York City are expected to fall an additional 17.4 percent by June 2011, while Chicago and Los Angeles are forecasted to fall an additional 25.2 percent and 20.2 percent, respectively, by June 2010. The Detroit metro area, which has the lowest home prices in the country, is expected to fall an additional 9.1 percent.

Chase changing appraisal requirements

2009-10-16T08:16:00.000-07:00

Chase, the third largest mortgage lender, with a 6% market share has changed their appraisal policies.

Here's a quote:"And while we're talking about appraisals, Chase Correspondent clients were told that Chase is making changes to their Collateral Policy which became effective October 2. They are eliminating Chase Approved Appraiser status, establishing minimum appraiser requirements, validating review and ineligible appraiser status, and eliminating First American Appraisal Services (eAppraiseIT) as a Chase-approved Appraisal Management Company (AMC). In fact, the Chase Appraiser Web site has been updated to remove all Chase Approved Appraisers. Correspondents can immediately take advantage of the revised minimum appraiser requirements and validation of Chase Ineligible status. Chase Home Lending will no longer approve, suggest or dictate the use of any specific appraisers. All appraisers with one of the valid state appraisal license/certifications (state license, state certified residential, state certified general) are permitted to complete appraisal services for loan transactions sold to Chase based on loan amount & complexity parameters. (A field review by a State Certified Appraiser is still required when the original appraisal is prepared by an appraiser in a Chase Review status.)"

Interesting article. Worth reading. To read the full story, click here

In Appraisal Shift, Lenders Gain Power and Critics

2009-08-19T09:22:00.000-07:00

August 19, 2009

Back to Business

In Appraisal Shift, Lenders Gain Power and Critics

By DAVID STREITFELD

Mike Kennedy, a real estate appraiser in Monroe, N.Y., was examining a suburban house a few years ago when he discovered five feet of water in the basement. The mortgage broker arranging the owner’s refinancing asked him to pretend it was not there.

Brokers, real estate agents and banks asked appraisers to do a lot of pretending during the housing boom, pumping up values while ignoring defects. While Mr. Kennedy says he never complied, many appraisers did, some of them thinking they had no choice if they wanted work. A profession that should have been a brake on the spiral in home prices instead became a big contributor.

On May 1, a sweeping change took effect that was meant to reduce the conflicts of interest in home appraisals while safeguarding the independence of the people who do them.

Brokers and real estate agents can no longer order appraisals. Lenders now control the entire process.

The Home Valuation Code of Conduct is setting off a bitter battle. Mortgage brokers, lenders, real estate agents, regulators and appraisers are all arguing over whether an effort to fix one problem has created many new ones.

The agents, maintaining that the changes are effectively blocking home sales by encouraging the use of inexperienced appraisers, are asking Washington to suspend the code until 2011. For their part, appraisers acknowledge that the change may have been well intentioned but contend that it has no teeth and is undermining the economics of their profession.

“We’ve been begging for years for enforcement of existing state and federal laws regulating appraising,” said Mr. Kennedy, a leader in the appraisal community. “We thought we were finally going to get that. But the code is doing nothing except putting ethical appraisers out of business.”

Financial change is one of the most contentious issues in Washington, and efforts to fix even widely acknowledged problems seem stalled. The attempt to change the appraisal system is an example of how difficult it can be to adopt changes that are good in theory and also work in practice — while simultaneously winning support from warring interest groups.

“The real estate industry is incredibly complex,” said Josh Denney, a lobbyist with the Mortgage Bankers Association. “If you take one piece and tinker with it, it causes friction throughout the process.”

The Home Valuation Code of Conduct had an unusual origin. It was developed by the New York attorney general, Andrew M. Cuomo, who persuaded the big federal mortgage agencies, Fannie Mae and Freddie Mac, to adopt it. That has effectively made it national policy.

Putting appraisals completely in the hands of lenders may sound like a good idea in principle, because it is supposed to be lenders who are putting their money at risk in a home loan.

But the reality is that many companies that write home loans these days do not have much incentive to worry about the accuracy of appraisals. That is because the companies do not keep the loans on their own books, instead selling them to Fannie Mae or Freddie Mac.

“The code is a formula for continued problems with fraud,” said David Callahan, a senior fellow with the public policy group Demos who has studied appraisals. “Appraisers have been asking for a long time for a reliable firewall between themselves and lenders, and are further from it than ever.”

Appraisers Pressured

Before real estate prices went out of control, appraisal work was straightforward. The appraiser examined a property inside and out, judging it against the prices that similar properties in the neighborhood were fetching. If the appraisal value matched the sales price, the lender financed the loan.

As lending standards collapsed during the housing boom, appraisers were pressured from all sides. When the appraiser did not deliver a satisfactory price, the deal did not get done, and the broker, agent and lender did not get their fees. Homeowners also loved inflated appraisals, using them to take out as much as possible when they refinanced.

“I got daily calls from lenders and brokers saying, ‘Here’s the address. Can you get me $400,000?’ ” said Mr. Kennedy, who has been in the business since 1993.

When he responded that it was illegal for him to supply an unsupported value — or when he noted in his report defects that the client hoped he would ignore, like a flooded basement — the broker or lender dropped him for a more compliant appraiser.

Petition Notes Abuses

The honest appraisers saw that the situation was helping to drive housing prices beyond reason. A petition they started a decade ago, just as the long boom was getting under way, warned of “the potential for great financial loss” to the economy if the penalties for pressuring appraisers were not enforced. The petition also complained that honest appraisers were being blacklisted. It drew 11,000 signatures.

Regulators and lawmakers did nothing. A rising market covered all sins. Then the market turned, and the lawsuits began.

In late 2007, Mr. Cuomo filed suit in New York Supreme Court against the data company First American and its subsidiary eAppraiseIT for fraud.

EAppraiseIT is an appraisal management company, which means lenders hire it to hire appraisers. This method, First American stressed in its annual report, produced “unbiased valuations” that benefited “not only the homeowner and lender, but our nation’s economy.”

Washington Mutual, based in Seattle, was the biggest client of eAppraiseIT. (Mr. Cuomo could not sue Washington Mutual for jurisdictional reasons.) The suit, still in court, charges that eAppraiseIT let itself be pressured by Washington Mutual to revise appraisals upward to match the value of deals.

Washington Mutual collapsed last fall, the largest bank failure in the nation’s history.

Mr. Cuomo, convinced that the troubles with appraisals went far beyond a single case, began an inquiry into Fannie and Freddie’s role in the buying of fraudulent mortgages. Before that investigation could be concluded, the two finance companies agreed they would buy mortgages only from lenders that abided by a new code of conduct.

In its original draft, the code froze out brokers and agents and placed severe restrictions on lenders. They were forbidden from using their staff appraisers or an appraisal management company in which they had more than a 20 percent interest.

The American Bankers Association and the Mortgage Bankers Association fought the restrictions, saying they would increase costs to consumers. The lenders also argued that Mr. Cuomo had no jurisdiction over their federally chartered operations. Banking regulators, who saw their authority being usurped, agreed.

The final version of the code gives much greater leeway to lenders. For instance, lenders can hire their own appraisers if they “recognize” that complaints will be forwarded to regulators.

The appraisal world was stunned. Dave Biggers, the chief executive of A La Mode, a maker of software for appraisers, said, “It’s like telling me I can steal as long as I ‘recognize’ that complaints will be directed to the police.”

Benjamin Lawsky, a special assistant to Mr. Cuomo, defended the revised version. “Our goal was always for the code to eliminate the causes of appraisal inflation while minimizing any disruptive impact on the industry,” he said. “We believe we accomplished this.”

Since national lenders cannot maintain lists of appraisers in every community, they long ago began outsourcing the process to the management companies, who had claimed about 30 percent of the market before the code took effect. Now that the lenders are the ones ordering all the appraisals, the management companies are expanding their share.

Real estate groups say the management companies, with the competition from brokers and agents eliminated, are now trying to fatten their profit margins by hiring appraisers as cheaply as possible.

These inexperienced appraisers, often traveling many miles to a market they do not know well, are scuttling legitimate deals, the agents claim. This argument has resonated in Congress, where 55 legislators have sponsored a bill calling for an 18-month moratorium on the code.

Appraisal management companies and lenders say the agents’ charges are not true.

“We’re an easy scapegoat,” said Donald Blanchard, chief compliance officer of Lender Processing Services Inc., which works with 20,000 appraisers. “We’ve yet to see any quantifiable proof as to the problems that management companies are supposedly causing.”

The real source of trouble for independent appraisers, he suggested, is not the code but a changing economy.

“Appraisers want to go back to the way it used to be,” Mr. Blanchard said. “But it’s good business for us to demand more for less.”

Fees Decline

Terry and Andrea Hartlieb, longtime appraisers in Fort Collins, Colo., miss the old days.

Instead of developing relationships with brokers and agents, the Hartliebs must wait for a lender or appraisal management company to call. A year ago, they would make $350 for an appraisal that would take about five hours. Now the management companies offer as little as half that. The couple has laid off four appraisers who used to work for them.

One recent call was about a complex property that would take additional time. Mr. Hartlieb asked for a bigger fee. The response: “We can get it done faster and for less elsewhere.”

Mrs. Hartlieb said, “Buying a house is the largest expense of your life. Don’t you want the best professional advice about its value, not the cheapest?”

Appraisers might be earning less, but consumers are being asked to pay more. The cost of an appraisal is now about $500, up from $400, appraisers say, because of the management companies’ share.

Moreover, if the goal of the code is to lessen pressure on appraisers, it is not clear that is happening.

A memo from U.S. Bancorp, which is based in Minneapolis, was posted recently on Appraisers’ Forum, an online discussion group. The memo bluntly urged the lender’s appraisers to “try and get the value we need the first time.” (A U.S. Bancorp spokeswoman said the memo was “not an official document.”)

In an online poll of 2,250 appraisers by Working RE magazine, half the respondents said they sometimes felt that management companies were ordering them to come up with a value that would make the deal work.

Banks and appraisal management companies say appraisers can be hypersensitive. “To some appraisers, the fact that we call you and ask a question is pressure,” said Mr. Blanchard of Lender Processing Services.

Under the code, the role of deciding what is pressure is assigned to a new entity called the Independent Valuation Protection Institute. If appraiser complaints are deemed valid, the institute is supposed to forward them to regulators.

Seventeen months after it was announced, the institute has no staff and no appraiser complaint hotline. All that exists is a single Web page.

Mr. Callahan, who wrote about the trouble with appraisals during the boom, is dismayed that the problem cannot be fixed even during the bust.

“Appraisers play a key role in keeping real estate transactions honest,” he said. “But we as a society have done very little to support them and ensure their independence.”

Dumpsters in Spring Hill

2009-07-14T13:37:00.000-07:00

The driver who picked up my construction dumpster today said PDQ has 32 dumpsters in Spring Hill where the builders have not paid rent and they will not be picked up until the rent is paid. He said all construction there has ground to a stop.

Brentwood's Whetstone falls in foreclosure

2009-07-14T13:36:00.001-07:00

Tuesday, July 14, 2009, 7:00am CDT Modified: Tuesday, July 14, 2009, 7:22am
Brentwood's Whetstone falls in foreclosure

Nashville Business Journal - by Jenny Burns Staff Writer

A Brentwood housing development with million-dollar homes, Whetstone, is in foreclosure.
Developers say this is the first major development in Brentwood to go into foreclosure during the current recession, and the property owners had been trying to sell the project.

Developer Sedona Investments LLC bought the 157-acre property in August 2005 for $9.4 million. James Cross, who is listed as the developer of Whetstone who took out the loans, did not immediately return calls Monday.

Homes in Whetstone, which is located off Edmondson Pike in Brentwood, start at $900,000.
The 141-lot development was appointed to a successor trustee in June, according to Williamson County records.

The development was sold on the Williamson County courthouse steps on Thursday to Fifth Third Bank for $7 million, says Tony Marble, a real estate agent and builder who is selling a home in Whetstone and attended the courthouse sale Thursday.

The Whetstone foreclosure has not yet been recorded in county records.

Fifth Third was the property’s lender, making at least two loans to Sedona for $6.1 million and $4.5 million, according to Williamson County records.

Four homes have been built in Whetstone. One of them is occupied, and the remaining three are for sale, Marble says.

jburns@bizjournals.com 615-846-4276

Homes Sales Drop to 1993 Levels

2009-02-09T11:48:00.000-08:00

The Greater Nashville Association of Realtors reports today that sales for all properties for January 2009 was 974. The number of single family homes at 821 has not been this low since January 1993 when the total single family home sales were 740. The 740 sales figure did not include Rutherford County which at the time had its own MLS.

Below is the full text of the release

MIDDLE TENNESSEE REAL ESTATE MARKET

FEELS IMPACT OF NATIONAL ECONOMIC TRENDS

There were 974 home closings reported for the month of January, according to figures provided by the Greater Nashville Association of Realtors®. This represents a decrease of 40.7 percent from the 1,644 closings reported for the same period last year.

“The real estate market in Middle Tennessee is clearly feeling the effects of the national economy,” said GNAR President Mike Nichols . “This is the first time we have had fewer than one thousand closings in one month since February of 1994. The Greater Nashville area was slower to feel the full impact of the current national economic situation, and we are traditionally on the early side of recovery, but right now the market is slower than anyone wants it to be."

"The standard formula items, such as interest rates and available inventory are all positive. However, when people don't have jobs, or don't have confidence that their jobs are reasonably secure, they are not likely to purchase homes or other significant items. Perhaps the passing of the stimulus package this week will initiate an increase in consumer confidence, but it is likely to take some time before the market really shows solid signs of recovery," Nichols said. "It does appear that rents have increased, so once people begin to feel confident again, it will make even more sense for them to consider the purchase of a home rather than continuing to rent."

A comparison of sales by category for January is:

Closings

Residential
Condominium
Multi-family
Farms/Land/Lots

January 2008

1,644

1,364
188
24
68

January 2009

974

821
103
16
34

There were 1,282 sales pending at the end of the month, compared with 1,924 pending sales at this time last year. The average number of days on the market for a single-family home was 89 days. The median residential price for a single-family home during January was $165,000, and for a condominium it was also $165,000. This compares with last year’s median residential and condominium prices of $179,900 and $158,890, respectively.

Inventory at the end of January was 22,509, up from 21,952 in January 2008. The current inventory of properties by category, compared to last year, is:

A comparison of inventory by category for January is:

Total Inventory

Residential
Condominium
Multi-family
Farms/Land/Lots

January 2008

21,952

14,008
2,418
385
5,141

January 2009

22,509

13,551
2,358
320
6,280

“Inventory is actually down in every category but farm, land and lots,” said Nichols. “That is an indication that land available for development is not being purchased, as the need for new homes is limited in light of current available inventory and sales activity. There is a good selection of homes available and ready for those interested in buying now, or for when consumer confidence strengthens and sales activity increases."

New home sales fell to their lowest level since 1963

2009-01-30T06:08:00.000-08:00

From

John Cherry

LANDAMERICA VALUATION CORPORATION

4300 Alexander Dr. # 200

Alpharetta, GA 30022

Toll Free: 800.207.7959

Fax: 770.777.6036

New home sales fell to their lowest level since 1963 in December continuing a downward trend that has been in place since mid-2005. Sales of new homes declined 14.7% last month to an annualized pace of 331,000. As weak as this sales pace is, it could be overstated because of the high number of contract cancellations that are not accounted for in the data. For all of 2008, sales have declined 44.8% and are now 76.2% below their peak reached in July 2005. Regionally, new home sales fell in all areas with the sharpest declines in the Northeast and West. The sluggish pace of new construction has kept inventories at a minimum with the inventory of new homes for sale down to 357,000 in December from 397,000 in November. However because of the greatly reduced pace of sales, the supply increased to 12.9 months from 12.5 previously. Prices also r emain on a downward slope with median prices dropping 9.3% to $206,500 over the last year and average sales prices decreasing 13.2% to $246,900. The downside surprise in new home sales seems to have caught many off-guard given the drop in mortgage interest rates and the rebound in existing home sales last month and the fact that the new home market just does not have that much further to fall. The outlook is not good either with new home sales expected to continue weakening until demand can be restored.

New orders for durable goods sank 2.6% in December more than an expected decline of 2.0%. Most major industry categories posted sharp declines last month except orders for electrical equipment. Spending on big ticket items and capital goods by consumers and businesses has fallen off sharply during the recession. The weakness in new orders portends of continued weakness in 2009.

Jobless claims increased 3k to 588k for the week ending January 24. Initial jobless claims remain elevated indicating a high pace of layoffs. Continuing jobless claims swelled by 159k to a record high of 4.776 million for the week ending January 17. The sharp gains in continuing claims show that people are remaining on unemployment benefits longer because hiring remains extremely weak. The insured jobless rate jumped to 3.6% its highest level since 1983.

Cooper Votes Against Stimulus

2009-01-28T16:22:00.000-08:00

Jim Cooper was one of only 11 Democrats who voted against the $819 Billion Ecomonic Stimulus package. All the House Republicans toed the party line and voted against the package.

http://www.washingtonpost.com/wp-dyn/content/article/2009/01/28/AR2009012800196.html

http://politics.nytimes.com/congress/votes/111/house/1/46

Tennessee ranks 15th in foreclosures

2008-10-23T13:55:00.001-07:00

Thursday, October 23, 2008 - 2:53 PM CDT

Tennessee ranks 15th in foreclosures

Nashville Business Journal

Tennessee had the 15th highest foreclosure rate in the nation in September, according to data released Thursday by RealtyTrac Inc.

Tennessee had 4,098 properties in foreclosure in September, or one per every 654 households, according to RealtyTrac, an Irvine, Calif.-based private marketer of foreclosure properties.

Tennessee’s foreclosure rate was up 1.61 percent from September 2007.

Nevada held the top spot for the 21st consecutive month in September. It was followed by Florida, California, Arizona, Georgia, Michigan, Ohio, New Jersey and Indiana.

Nationwide, foreclosure filings fell 12 percent in September from August to 265,968 properties. That is up 21 percent from September 2007. One in every 475 U.S. households was in foreclosure in September.

“Much of the 12 percent decrease in September can be attributed to changes in state laws that have at least temporarily slowed down the pace at which lenders are moving forward with foreclosures,” James Saccacio, CEO of RealtyTrac, says in a statement.

Six states — California, Florida, Arizona, Ohio, Michigan and Nevada — accounted for more than 60 percent of U.S. foreclosure activity in the third quarter, according to RealtyTrac. California alone accounted for more than 27 percent of total filings

Sales Continue Their Downward Trend

2008-10-09T10:48:00.000-07:00

Continuing the downward trend the Greater Nashville Association of Realtors reported a 19.8% drop in sales compared to September 2007. (http://www.gnar.org/mlsrelease.htm) Year to date sale are down 27.5% and third quarter sales were down 26.5%.

There were two positive notes. Single Family inventory was down compared to last year for the second straight month, and down nearly 600 homes compared to last month. And the number of pending sale this year verses last year is tightening. This indicates that the percentage decline in sales in October is likely not going to match last months.

Dirty Secret Of The Bailout: Thirty-Two Words That None Dare Utter

2008-09-22T12:57:00.000-07:00

From Jason Linkins

jason@huffingtonpost.com
A critical - and radical - component of the bailout package proposed by the Bush administration has thus far failed to garner the serious attention of anyone in the press. Section 8 (which ironically reminds one of the popular name of the portion of the 1937 Housing Act that paved the way for subsidized affordable housing ) of this legislation is just a single sentence of thirty-two words, but it represents a significant consolidation of power and an abdication of oversight authority that's so flat-out astounding that it ought to set one's hair on fire. It reads, in its entirety:

Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.

In short, the so-called "mother of all bailouts," which will transfer $700 billion taxpayer dollars to purchase the distressed assets of several failed financial institutions, will be conducted in a manner unchallengeable by courts and ungovernable by the People's duly sworn representatives. All decision-making power will be consolidated into the Executive Branch - who, we remind you, will have the incentive to act upon this privilege as quickly as possible, before they leave office. The measure will run up the budget deficit by a significant amount, with no guarantee of recouping the outlay, and no fundamental means of holding those who fail to do so accountable.

2008-09-09T14:51:00.000-07:00

The Greater Nashville Association of Realtors released the August 2008 homes sales figures today. Single Family home sales were down 32.3% with median single family home prices dropping 6.4%.

As I indicated last month the inventory of homes has stabilized, and in fact dropped from 15,844 in July to 15,636 which is the lowest it has been since March. We will need to see a continuation of the declining inventory coupled with increase in sales to bring the market back in to balance. The decline in inventory is a good start.

http://www.gnar.org/mlsrelease.htm

It is Joe Biden

2008-08-23T01:30:00.000-07:00

I got my text at 2:43 this morning - so despite what MSNBC is reporting that it was not going out until 5:30 Eastern.

I was awake when it arrived because we are leaving to go to Tulane.

Sliver of Hope in the July Home Sales Figures

2008-08-11T15:18:00.000-07:00

The Greater Nashville Association of Realtors has released the July 2008 sales figures and sales are down 25.7%. Bad news. Pending sales which are an indication of future sales are down 23.1%. Bad news. Inventory is up 12.6%. Bad news.

So where is the sliver of hope? A significant increase in the inventory is due to a big jump in the number of Farms, Land and Lots. Up nearly 50% to 6,182 vs 4,170 in 2007. The sliver of hope is that Single Family listings are up less that 1,000 compared to 2007 which indicates that the inventory is beginning to stabilize.

So why is the inventory of Farms, Land, and Lots up? In better times many developers do not add their inventory of lots to the MLS, since they marketing them directly to builders. As times get tough they broaden their marketing and place their lot inventories on MLS. It appears that this is why there has been such a year over year increase.

2008-08-06T13:50:00.000-07:00

John McCain says Barack Obama acts like he's a celebrity. Maybe he should review his own life. Seems like the pot calling the kettle black.

2008-07-28T14:56:00.000-07:00

Tennessee ranks 13th in foreclosures

Nashville Business Journal - July 28, 2008
http://nashville.bizjournals.com/nashville/stories/2008/07/28/daily3.html

Monday, July 28, 2008 - 9:32 AM CDT

Tennessee ranks 13th in foreclosures Nashville Business Journal Tennessee ranks 13th among all states in foreclosure rates, according to second quarter data RealtyTrac Inc. reported Friday. The state of Tennessee had 12,008 foreclosure filings -- default notices, auction sale notices and bank repossessions -- in the second quarter. That's 105.2 percent more than the second quarter 2007. One out of every 223 Tennessee households got a foreclosure notice in the second quarter. In the U.S., foreclosure filings were reported on 739,714 properties during the second quarter -- a 121 percent increase from the second quarter of 2007. The report also shows that one in every 171 U.S. households received a foreclosure filing during the quarter. "Although much of the fallout from foreclosures is being driven by rampant activity in a few states, such as Nevada, California, Florida, Ohio, Arizona and Michigan, most areas of the country are seeing at least some increase in foreclosure activity," says James J. Saccacio, CEO of RealtyTrac, in a statement. "48 of 50 states and 95 out of the nation's 100 largest metro areas experienced year-over-year increases in foreclosure activity in the second quarter." Saccacio noted bank repossessions accounted for 30 percent of total foreclosure activity in the second quarter, up from 24 percent of the total in the first quarter. "This shift in the distribution of activity indicates that there is a progression toward purging the problem loans out of the system -- at which point the housing market can regain some sense of normalcy," he says. "Of course, if another surge in defaults occurs, which could well happen later this year, it would refill the foreclosure pipeline and prolong the recovery."

All contents of this site © American City Business Journals Inc. All rights reserved.

Nashville, you won't miss your corporate caffine fix.

2008-07-18T12:34:00.000-07:00

There are no scheduled Starbuck's closings in Nashville. Murfressboro, Memphis, Knoxville and Chattanooga were not so "lucky." See http://www.huffingtonpost.com/2008/07/18/starbucks-reveals-closure_n_113593.html for a complete list.

NAR reported that existing home sales increased 2.0% in May

2008-06-27T04:18:00.000-07:00

The NAR reported that existing home sales, including single-family, townhomes, condos and co-ops, increased 2.0% in May to a seasonally adjusted annual rate of 4.99 million units. Sales remain 15.9% below the 5.93 million-unit pace in May of last year. The Association believes that better-than-expected sales last month were a result of buyers wading back into the market because of recent price declines and more affordable mortgage products. Regionally, sales rose in all areas by varying degrees except for the South where they declined 0.5%. Stronger sales activity resulted in a slight decline in inventory levels. The inventory of homes on the market fell 1.4% to 4.49 million which represents a 10.8 month-supply at the current sales pace. Prices continued to decline amid rising foreclosures and short sales. The median price for an existing hom e nationwide fell 6.3% over the last year to $208,600 as average prices declined 6.5% to $253,100. The improvement in home sales is welcomed; however, the housing market remains weak as evidenced by sky-high inventories and declining sales prices. Weakness is expected to continue going forward.

Jobless claims were unchanged at a level of 384k for the week ending June 21. Claims remain elevated indicating sluggish labor market conditions at best. Expect the employment report for June, due out next Thursday to probably showing a larger decline in payrolls than in May.

The final revision to Q1 GDP showed the economy grew at a 1.0% rate, as expected. Economy-wide inflation increased slightly to 2.7% from 2.6% in the previous estimates. The data released so far in April and May suggest that Q2 growth will continue to be very soft.

John Cherry

LANDAMERICA VALUATION CORPORATION

Parkview One
925 North Point Parkway, Suite 400

Alpharetta, GA 30005

Toll Free: 800.207.7959

Fax: 770.777.6036

Report Sees Illegal Hiring Practices at Justice Department

2008-06-24T14:35:00.000-07:00

June 25, 2008

Report Sees Illegal Hiring Practices at Justice Department

By ERIC LICHTBLAU

WASHINGTON -- Justice Department officials over the last six years illegally used “political or ideological” factors to hire new lawyers into an elite recruitment program, tapping law school graduates with conservative credentials over those with liberal-sounding resumes, a new report found Tuesday.

The blistering report, prepared by the Justice Department’s inspector general, is the first in what will be a series of investigations growing out of last year’s scandal over the firings of nine United States attorneys. It appeared to confirm for the first time in an official examination many of the allegations from critics who charged that the Justice Department had become overly politicized during the Bush administration.

“Many qualified candidates” were rejected for the department’s honors program because of what was perceived as a liberal bias, the report found. Those practices, the report concluded, “constituted misconduct and also violated the department’s policies and civil service law that prohibit discrimination in hiring based on political or ideological affiliations.”

The shift began in 2002, when advisers to then-Attorney General John Ashcroft restructured the honors program in response to what some officials saw as a liberal tilt in recruiting young lawyers from elite law schools like Harvard and Yale. While the recruitment was once controlled largely by career officials in each section who would review applications, political officials in the department began to assume more control, rejecting candidates with liberal or Democratic affiliations “at a significantly higher rate” than those with Republican or conservative credentials, the report said.

The shift appeared to accelerate in 2006, under then-Attorney General Alberto R. Gonzales, with two aides on the screening committee — Michael Elston and Esther Slater McDonald — singled out for particular criticism. The blocking of applicants with liberal credentials appeared to be a particular problem in the Justice Department’s civil rights division, which has seen an exodus of career employees in recent years as the department has pursued a more conservative agenda in deciding what types of cases to bring.

Applications that contained what were seen as “leftist commentary” or “buzz words” like environmental and social justice were often grounds for rejecting applicants, according to e-mails reviewed by the inspector general’s office. Membership in liberal organizations like the American Constitution Society, Greenpeace, or the Poverty and Race Research Action Council were also seen as negative marks.

Affiliation with the Federalist Society, a prominent conservative group, was viewed positively.

Representative John Conyers Jr., the Michigan Democrat who heads the House Judiciary Committee, saw the report as affirmation that the Justice Department had crossed the line in “putting politics where it doesn’t belong.”

“When it comes to the hiring of nonpartisan career attorneys,” Mr. Conyers said, “our system of justice should not be corrupted by partisan politics. It appears the politicization at Justice was so pervasive that even interns had to pass a partisan litmus test. ‘’

The inspector general is still investigating other issues related to alleged politicization of the Justice Department, including the central question of why nine United States attorneys were fired in late 2006. Those findings have not been made public.

Worst Office Meltdown Ever

2008-06-13T13:32:00.001-07:00

Home foreclosures set record in first quarter - Mortgage Mess- msnbc.com

2008-06-05T14:05:00.000-07:00

Home foreclosures set record in first quarter - Mortgage Mess- msnbc.com

Economists expect defaults to keep rising as housing crisis deepens

The Associated Press

updated 3:46 p.m. CT, Thurs., June. 5, 2008

WASHINGTON - Home foreclosures and late payments set records over the first three months of the year and are expected to keep rising, stark signs of the housing crisis' mounting damage to homeowners and the economy.

The latest snapshot of the mortgage market showed that the proportion of mortgages that fell into foreclosure soared to 0.99 percent in the January-through-March period. That surpassed the previous high of 0.83 percent over the last three months in 2007.

The report by the Mortgage Bankers Association also found that more homeowners slipped behind on their monthly payments.

The delinquency rate jumped to 6.35 percent in the first quarter, compared with 5.82 percent for the three months earlier. Payments are considered delinquent if they are 30 or more days past due.

Both the rate of new foreclosures and late payments were the highest on record going back to 1979.

Jay Brinkmann, the association's vice president of research and economics, told The Associated Press that the slump in house prices was the biggest factor for rising foreclosures and late payments.

With prices expected to keep dropping, foreclosures and late payments "are going to continue to go up" in the months ahead, he said.

Homeowners with tarnished credit who have subprime adjustable-rate loans took the hardest hits. Foreclosures and late payments for these borrowers also swelled to all-time highs in the first quarter.

The percentage of subprime adjustable-rate mortgages that started the foreclosure process climbed to 6.35 percent. The rate was 5.29 percent in fourth quarter, the previous high.

Late payments rose to 22.07 percent from 20.02 percent, the previous high.

The association's survey covers just over 45 million home loans.

More problems also cropped up with loans to more creditworthy borrowers.

The percentage of such loans falling into foreclosure was 0.54 percent, compared with 0.41 percent at the end of last year. Late payment rose to 3.71 percent, compared with 3.24 percent.

The numbers were higher for prime borrowers with adjustable rate mortgages. The proportion of those loans falling into foreclosures jumped to 1.55 percent from 1.06 percent. The delinquency rate rose to 6.78 percent, compared with 5.51 percent.

"The number one problem is the drop in home prices," Brinkmann said. Declining prices, especially in newer built areas, "are hurting people's ability to recover when they run into trouble — a divorce or loss of job," he said. "In other days, you could sell the home. But because home prices have fallen so much, in many of those cases, the homes are going into foreclosure."

California, Florida, Nevada and Arizona accounted for 89 percent of the total increase in new home foreclosures, he said. Those are places where prices have fallen sharply and there was a lot of home building, creating too much supply, Brinkmann said.

The housing crisis is at the center of the country's economic troubles.

After a five-year boom, the market fell into a deep slump two years ago. That dragged down sales, and prices with it. As the value of homes plummeted, many newer homeowners found themselves owing more on their mortgages than their homes were worth.

Homeowners with adjustable-rate mortgages were clobbered when their initially low rates reset to much higher ones. That made it difficult, if not impossible, to keep up with monthly mortgage payments.

As foreclosures and late payments climbed, financial companies took multibillion losses when their investments in mortgage-backed securities soured. A credit crisis erupted and spread, crimping other types of financing. The fallout plunged Wall Street in turmoil, disrupting the normal functioning of markets.

All those troubles have pushed the economy to the brink of a recession, if the country isn't already in one. Consumers and business have tightened their spending. Employers have cut more than a quarter-million jobs in the first four months of this year.

To bolster the economy, the Federal Reserve made aggressive interest rate cuts. That has helped homeowners facing rate resets on their adjustable-rate mortgages. But with inflation on the rise, Fed Chairman Ben Bernanke this week sent his strongest signal yet that the central bank's rate-cutting campaign started that started in September is coming to an end.

The Bush administration has taken steps to help distressed homeowners. It has urged lenders to freeze rates for some homeowners and encouraged lenders to rework mortgage terms so troubled borrowers can stay in their homes.

Congress is considering giving government-backed mortgages to thousands of strapped borrowers. The White House has expressed some concerns.

URL: http://www.msnbc.msn.com/id/24985540/

MSN Privacy . Legal

Rising Prices, Falling Dollar Stoke Memories of the '70s

2008-06-04T05:46:00.000-07:00

Rising Prices, Falling Dollar Stoke Memories of the '70s

By Neil Irwin
Washington Post Staff Writer
Wednesday, June 4, 2008; A01

Prices have been soaring long enough and fast enough, economists say, that the nation is at risk of a self-reinforcing cycle of inflation like that experienced in the 1970s.

It is a risk Federal Reserve Chairman Ben S. Bernanke highlighted in a speech yesterday, saying that the falling value of the dollar can feed into inflation expectations, and that rapid price escalation, if sustained, "might lead the public to expect higher long-term inflation rates, an expectation that ultimately could become self-confirming."

For some businesses that already is the reality. Many companies making long-term investments are assuming that prices will rise at a pace well above that of the past 20 years, as they pencil in larger price increases for the supplies they buy and the prices they charge. Consumers are coming to take rapidly escalating food and energy prices for granted. And labor unions are starting to push harder for across-the-board wage increases, though overall wages are still climbing slowly.

U.S. consumers expect prices to rise 7.7 percent in the coming year, according to the Conference Board, a research company. Investors expect inflation over the coming decade to average 3.4 percent based on bond market data analyzed by the Cleveland Fed. That is well above the Fed's unofficial target of about 2 percent.

When the price of food or gasoline goes up, economists generally think of it as a one-time bump. For the past four years, it hasn't been. The last time there were sharp and sustained increases in those prices, in the 1970s, a wage and price spiral developed that was so severe that the Fed had to engineer the deepest downturn since the Great Depression to end it.

"We're at the edge of the cliff right now," said Scott Anderson, senior economist at Wells Fargo. "It's still at an embryonic stage, like where we were in 1973 or 1974, not as bad as things were in 1979. But it could move in that direction if the Fed isn't aggressive."

Ordinary businesspeople, especially those in industries in which energy costs figure heavily, are responding as if that is the direction the economy is heading.

"We are assuming that prices will continue to go up, not that they're going to level off anytime soon," said John Benko, president of Manko Delivery Systems, a Tampa company that offers ground freight, logistics and other services. His company has been able to pass on about three-quarters of the higher fuel costs to customers in the form of higher prices, with the rest cutting into his firm's profit.

Ryder System has reduced the maximum speed on its fleet of trucks from 65 to 63 miles per hour, and many of its clients are making fewer shipments of goods with fuller trucks.

But these decisions are a logical response to higher fuel prices -- not necessarily signs that expectations for future inflation are coming unhinged. The best way to get a sense of those long-term expectations is through what executives assume as they make longer-term choices.

If a manufacturer expects energy prices to keep rising, it would be more inclined to pay extra for a more efficient machine, or choose to set up many small warehouses close to customers rather than one massive one that is far away.

That's what's happening, said Thomas L. Jones, a general manager for Ryder. "People are assuming prices have got nowhere to go but up," he said.

"Almost unilaterally our customers are expecting prices to continue rising," said Bob Strle, a vice president of Countermind, a Colorado firm that sells technology to help shipping firms plan their routes more efficiently -- an investment that offers a higher payoff when gasoline prices rise.

The big question is whether those expectations of higher fuel prices feed into a wage and price spiral like that of the 1970s, in which workers demanded -- and received -- double-digit wage increases to keep up with higher prices, which then fueled further inflation.

There are huge differences between now and the 1970s. In the past year, the average weekly wage for private sector non-managerial workers rose only 1.9 percent. A soft U.S. economy could continue to leave workers little leverage with which to demand pay hikes to match higher prices.

Moreover, fewer workers are unionized, fewer of those have automatic cost-of-living adjustments, and unions have less clout with which to negotiate wage increases. Finally, many of the most heavily unionized industries, such as the automakers, are in such dire financial straits that raises of any sort are unlikely.

"There is no evidence that wages have started to spiral up," Janet L. Yellen, president of the Federal Reserve Bank of San Francisco, said in a recent speech.

But there are signs that higher prices are changing the dynamic of labor negotiations, at least in certain sectors. For most of the past 20 years, wage negotiations have centered on various pay-for-performance schemes. With higher inflation, unions in a position to do so are now pushing for higher across-the-board raises, said David B. Lipsky, a professor at Cornell's School of Industrial and Labor Relations.

"The pendulum had swung away from across-the-board wage increases, now we're seeing it swing back the other way," said Lipsky, citing recent contracts among public-sector workers and some in the hotel and casino businesses.

In a four-year contract for 40,000 janitors agreed to at the end of last year, for example, the Service Employees International Union managed to get annual raises of 4 percent, not the 3 percent during the time when inflation was lower (the raises were even higher in more recently organized cities, including Washington).

"The high inflation has adjusted our thinking of what kind of dollars we would ask for at the bargaining table," said Mike Fishman, president of SEIU Local 32BJ, who said the union worked from the assumption that inflation in the years ahead will continue at a similar pace as it has recently.

Bernanke, in his speech yesterday delivered by satellite to a group of central bankers in Barcelona, also made clear that the dropping value of the dollar creates a risk of heightened inflation expectations.

Bernanke, Harvard Class of '75, will have a chance to address whether he sees any similarities between the current situation and those when he was a college senior in a speech today for the university's graduation exercises. Its title is "Economic Challenges: 1975 and Now."

2008-06-02T14:56:00.000-07:00

He graduated from a Williamson County School

No. of state real estate test-takers drops by 57% - Nashville Business Journal:

2008-05-23T06:34:00.000-07:00

No. of state real estate test-takers drops by 57% - Nashville Business Journal:

The number of people taking state exams to be real estate agents has dropped 57 percent and Nashville area real estate schools are seeing enrollments cut in half.

Those signing up to use the Middle Tennessee Multiple Listing Service has also declined, down 43 percent from last year to 477 from 843 in the first quarter, according to Real Tracs.

Fewer are getting into the industry and there's been an increase in Realtors getting out, says Harold Crye, CEO of Nashville's largest real estate company Crye-Leike Realtors Inc.

Jason Murphy, administrative manager with Crye-Leike, says the romance is over.

London Home Sells for $230,000,000

2008-05-23T05:37:00.000-07:00

A MANSION in London is set to sell for £117million - making it the world's costliest home. The palatial residence, on a street dubbed Billionaires' Row, is believed to have been bought by Britain's richest man, steel tycoon Lakshmi Mittal.

He is believed to be close to exchanging contracts with owner Noam Gottesman, 47, a US-born financier.

The home in Kensington Palace Gardens, West London, Princess Diana's former street, is being sold furnished and with an art collection. It works out at an astonishing £8,000 per square foot.

Mr Mittal, 57, who denies being the buyer, has been looking to splurge some of his £27.7billion fortune on a home for son Aditya, 32. Mr Mittal moved into the half-mile, tree-lined private avenue four years ago after paying £67million for a 12-bedroom home.

Home price index posts largest-ever decline - Mortgage Mess- msnbc.com

2008-05-22T09:11:00.000-07:00

Home price index posts largest-ever decline - Mortgage Mess- msnbc.com: "WASHINGTON - U.S. home prices posted their sharpest first-quarter decline since the government began tracking the data 17 years ago.

The Washington-based Office of Federal Housing Enterprise Oversight said Thursday that home prices fell 3.1 percent in the first quarter compared with last year. The index also fell 1.7 percent from the fourth quarter of 2007 to the first quarter of 2008, the largest quarterly price drop on record.

'The large overhang of real estate inventory awaiting sale continues to force price declines in many areas, but particularly in places that had seen very sharp appreciation,' Patrick Lawler, the agency's chief economist, said in a prepared statement."

Prices fell in 43 states, with California and Nevada showing the biggest declines. Home prices dropped by more than 8 percent in those states.

The government index is calculated by tracking mortgage loans of $417,000 or less that are bought or backed by the government-sponsored mortgage-finance companies Fannie Mae and Freddie Mac. Legislation enacted in February temporarily raised the limit to as much as $729,750 in high-cost areas.

The government index focuses on less expensive properties and includes fewer houses bought with risky home loans that have gone sour over the past year.

Martin Luther King and Hume Fogg rank 23rd and 24th in the Nation

2008-05-19T11:20:00.001-07:00

Martin Luther King and Hume Fogg rank 23rd and 24th in the Nation in the new Newsweek rating of the the top 1300 best Public High Schools.

The next highest Tennessee schools - Brentwood at #187, Hillsboro at #390, and Ravenwood in Brentwood at #465, plus 10 more ranked in the survey.

http://www.newsweek.com/id/39380?GT1=43002

NASHVILLE HOME SALES DECREASE; PRICES RISE IN APRIL

2008-05-08T12:46:00.000-07:00

HOME SALES DECREASE; PRICES RISE IN APRIL; CONDO SALES AND PRICES DOWN

There were 2,135 home closings reported for the month of April, according to figures provided by the Greater Nashville Association of Realtors®. This represents a decrease of 28.5 percent from the 2,989 closings reported for the same period last year.

Year-to-date closings are down compared to last year with 7,898. That is a 28 percent decrease compared to the 10,979 closings reported through April 2007.

"While home sales are down, the decrease is running on par with previous months. That means the Greater Nashville market is performing with some consistency, even in these time of change. That can work to the advantage of buyers and sellers because they can adapt to the changes, and with the help of a real estate professional, make educated decisions," said Mandy Wachtler, 2008 President of the Greater Nashville Association of Realtors. "At this time, Nashville area home sales are comparable to 2001, which is much better than some markets around the country which are experiencing home sales and prices comparable to what they had 15 or 20 years ago."

There were 2,342 sales pending at the end of April, compared with 3,339 sales that were pending at the same time last year. The median residential price during April was $180,000 and for a condominium it was $162,000. That compares with median residential and condominium prices at this time last year of $177,900 and $163,900 respectively. The average number of days on the market for a single-family residence was 80 days.

Inventory at the end of April was 24,670. That compares with an inventory of 20,129 at the end of April 2007.

http://www.gnar.org/mlsrelease.htm

Sunday was the 38th Anniversary of Kent State

2008-05-05T06:07:00.000-07:00

White Haired Ladies from Nashville for Obama

2008-05-02T14:54:00.000-07:00

Existing home sales fell 2 percent in March - Real estate- msnbc.com

2008-04-22T10:08:00.000-07:00

Existing home sales fell 2 percent in March - Real estate- msnbc.com

WASHINGTON - Sales of existing homes fell in March as a severe slump in housing showed no signs of abating. The median price of a home fell compared with the price a year ago.

The National Association of Realtors said sales of existing single-family homes and condominiums dropped by 2 percent in March to a seasonally adjusted annual rate of 4.93 million units.

The median price of a home sold last month was $200,700, a decline of 7.7 percent from the median price a year ago. That was the second-biggest year-over-year price decline following a record 8.4 percent drop in February. The records go back to 1999.

Foreclosures in Nashville Up 6.9% Quarter to Quarter.

2008-04-16T06:06:00.000-07:00

While the report below from Southeast Title of Tennessee, Inc. reports a 20.6% increase in foreclosures for the Nashville MSA, the numbers for Davidson County show an increase of 6.9%. It is my opinion that this is showing that Nashville is weathering the sub-prime crisis much better that the balance of the country.

Tuesday, April 15, 2008

PRESS RELEASE

Foreclosure Index

Nashville, Tennessee

Subject: Foreclosure Sales – Nashville/Davidson County Metropolitan Statistical Area

For the 1^st quarter of ’08, actual foreclosure sales in the Nashville MSA increased 20.6% year over year to 743 compared to 616 in 2007. Wilson County led the pack with a whopping 166% increase. Surprisingly affluent Williamson County was right behind with a 150% increase. Davidson County increased only 6.9 % for the same period while foreclosure sales in Cheatham County actually decreased by 13.3%.

The County by County breakdown is as follows:

County:

1q ‘08

1q ‘07

+/-

% change

Cheatham

13

15

-2

-13.3%

Davidson

509

476

+33

6.9%

Dickson

17

11

+6

54.5%

Robertson

26

21

+5

23.8%

Rutherford

84

56

+25

50%

Wilson

24

9

+15

166%

Williamson

70

28

+42

150%

The preceeding information has been compiled by Southeast Title of Tennessee, Inc., Brentwood, Tennessee and is based on the actual recordings of foreclosure deeds in the register of deeds offices for the 7 counties encompassing the Nashville/Davidson County Metropolitan Statistical Area.

Tax Day Thought

2008-04-15T14:14:00.001-07:00

I noticed today if you put THE in front of IRS you get a clear understanding of how they see your money.

HOME SALES DECREASE IN FEBRUARY

2008-03-10T13:03:00.000-07:00

Greater Nashville Association of Realtors - "There were 1,892 home closings reported for February, which is a decrease of 26.5 percent from the 2,575 closings reported for the same period last year. The number of pending sales is 2,183, which is the first time since last October that there have been more than 2,000 pending sales. The median price for single-family homes remained stable, while the median price for condominiums decreased by 5 percent. Click here for a copy of the news release with additional details on home sales for February. And, you can click here for more information on history and trends of home sales in recent years."

The number of pending sale on 2008 compared to 2007 is down 24%. This is an indicator that March sales should continue the trend of be down year over year. Median single family prices sliped $1,900 or 1.1%. I believe that this is the first decline in at least the past five years. Inventory is up 26%.

Tennessee Economy Ranks 5th Best

2008-03-06T13:54:00.000-08:00

Report: Tennessee economy ranks 5th
Nashville Business Journal

Tennessee has the country's 5th best economy, according to a state economic competitiveness ranking released by the American Legislative Exchange Council.

The report from ALEC, which bills itself as the nation's largest nonpartisan individual membership organization of state legislators, ranks the economic competitiveness of each state.

The state's top marginal personal income tax, a low state minimum wage and its right-to-work status helped place the state high in those rankings.

Tennessee ranked 1st in those three of the 16 categories examined.

According to the authors, Tennessee ranks below 20 other states in seven other categories, including top marginal corporate income tax, low property tax burden, debt service as a percentage of total tax revenue and state tort liability system.

Areas that needed improvement include lowering sales taxes and workers' compensation costs, according to ALEC.

Utah's economy was ranked the best followed by Arizona and South Dakota. Vermont was last.

The report's official title is Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index.

Rob Briley Will Not Run

2008-03-04T13:59:00.000-08:00

State representative decides not to run for office in order to work on his health and new law office

By Ken Whitehouse

03-04-2008 2:30 PM — State Rep. Rob Briley (D-Nashville) said today that he will not seek re-election to the state legislature in order to continue working on his health, his very public battle with alcoholism, and to devote more time to his newly opened law office. He has served in the Tennessee House of Representatives since 1999.
Last Sept. 8, Briley, 41, was arrested in Wilson County for driving under the influence and leaving the scene of an accident. The arrest, which was caught on video from the dashboard camera of the police patrol car, quickly put him on the national news and made him fodder for late-night talk show hosts.

Asked about the incident today, Briley said, "You know, my worst day ever is on tape. I'd like to say that really wasn't me, or I was just really out of sorts, but I know that I was the guy on the film and I don't want be that person again. I have been working very hard to rebuild my life, continuing with counseling and recovery programs. Alcoholism is only one small part of the many issues I am dealing with and in order to fully commit to recovery it is time to step down from the legislature by not standing for re-election."

Many people have told him that the legislature exacerbated his troubles, but he disputes that notion. Briley said, "The people up here, both Democrats and Republicans, are here for the right reasons. While we don't always agree, we all care about each other and the people we serve. When my problems became public, I was embraced by members of both parties, many of whom I battled with tooth and nail on legislative issues that at times became personal. At first, I concentrated on a few members who seemed to take satisfaction in my disgrace, but that didn't last long... Too many people from all factions of the legislature have come forward and showed me the meaning of the word 'statesman.'"

When asked if he would consider a political comeback in the future, Briley said that for now he simply wants to finish off his work in the legislature and concentrate on his health.

"I feel a need to finish what the people of my district elected me to do," said Briley. "That is to serve out this term. I know I let them down and I feel if I walk away before then I would be doing it again. They have been there for me and have overwhelmingly supported me throughout, even more so after my troubles became public. They have meant more to me than they know, and for that I am eternally grateful."

Packers QB Favre to retire

2008-03-04T08:33:00.000-08:00

Packers QB Favre to retire
Three-time MVP calling it quits following 17 seasons

Quarterback Brett Favre has started every Packers game since Sept. 27, 1992.

GREEN BAY, Wis. (AP) -- Brett Favre has decided to retire from the NFL after 17 seasons.

"He has had one of the greatest careers in the history of the National Football League, and he is able to walk away from the game on his own terms -- not many players are able to do that," Packers general manager Ted Thompson said Tuesday.

Favre's agent Bus Cook said the 38-year-old quarterback told him of his decision Monday night.

"Nobody pushed Bret Favre out the door, but then nobody encouraged him not to go out that door, either," Cook said by phone from his Hattiesburg, Miss., office.

FOX Sports first reported Tuesday that the Green Bay Packers quarterback informed the team in the last few days. ESPN.com said that according to Favre's agent the quarterback told coach Mike McCarthy of his decision.

The news was a surprise to at least one of Favre's teammates. Most players expected Favre to return after a successful 2007 season.

"I just saw it come across the TV," Packers wide receiver Koren Robinson said, when reached on his cell phone by The Associated Press.

The 38-year-old Favre, a three-time NFL MVP and one of the NFL's grittiest players, has made his annual flirtation with retirement a winter tradition in Wisconsin. He has taken weeks and even months to make his decision after recent seasons, with Cheeseheads hanging on his every word.

But unlike the final game of the 2006 season -- when Favre provided a cliffhanger by getting choked up in a television interview as he walked off the field in Chicago, only to return once again -- nearly everyone assumed he would be back this time. They were wrong.

Only two years removed from perhaps his worst season, Favre had a resurgence in 2007. He broke several career records. Among them was Dan Marino's career mark for career touchdown passes. He powered the Packers to an NFC North title and a 13-3 regular-season record and earned his ninth Pro Bowl spot.

Surrounded by an underrated group of wide receivers who proved hard to tackle after the catch, Favre had a career-high completion percentage of 66.5. He threw for 4,155 yards, 28 touchdowns and only 15 interceptions.

It was a remarkable turnaround from 2005, Favre's final season under former head coach Mike Sherman, when he threw a career-worst 29 interceptions as the Packers went 4-12.

Given Favre's career resurgence, it was widely assumed that he was leaning toward returning for the 2008 season.

He even said as much just before the Packers' Jan. 12 divisional playoff game against Seattle, telling his hometown newspaper that he wasn't approaching the game as if it would be his last and was more optimistic than in years past about returning.

"For the first time in three years, I haven't thought this could be my last game," Favre told the Biloxi (Miss.) Sun Herald. "I would like to continue longer."

Those comments sent premature shock waves across the state -- all the way up to the governor's office, where the political version of a false start was committed.

"Like all Packer fans, I am thrilled that Brett Favre will return to action next year for the green and gold," Gov. Jim Doyle said in a statement. "Brett Favre's tremendous work ethic and willingness to go out and play hard every day represent the true spirit of Wisconsin. I am hopeful that with this announcement behind us, Brett Favre and the Green Bay Packers can focus on the task at hand: defeating the Seattle Seahawks."

The governor's office later amended the statement to say Doyle was "excited to hear Brett Favre talking about returning to action next year."

It was another example of the state's fascination with the future of its favorite quarterback.

Favre then finished the season on a sour note, suddenly showing his age in the Packers' 23-20 overtime loss to the New York Giants in the NFC Championship game.

Favre struggled in subzero temperatures, throwing an interception on the Packers' second play from scrimmage in overtime to set up the Giants' game-winning field goal.

After that game, Favre was noncommittal on his future. McCarthy said he wanted Favre to take a step back from the season before making a decision. But it was widely assumed he would be back.

"I think he's going to come back," Packers receiver Donald Driver said in early January. "I wouldn't be surprised if he comes back. He's having a great year, so it'd be great to see him come back if he decides to."

Retiring Packers chairman Bob Harlan figured Favre would be back, too.

"Yeah, I think he'll be back," Harlan said, on his final official day as the Packers' top executive. "And I felt that way the last couple years, when we've had these long debates about it. I just think he's such a competitor that as long as he feels he can compete, he's going to keep coming back."

Still, in the week leading to the playoff game against Seattle, Favre said his injuries were starting to linger.

"I'm not getting any younger," Favre said. "I wake up some days and think I can't even touch my toes. I think about that. I think, well, next year is not going to be like some refreshing, awakening season where all of a sudden you're going to feel great. That's not going to happen.

"I carry some of these things with me that maybe you wouldn't see. I tend to dwell on them, at least internally, more than I used to. I don't write them off as quickly as I used to."

Copyright 2008 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Annual U.S. Home Prices Fall for First Time Since Depression

2008-03-04T04:33:00.000-08:00

U.S. home prices fell in 2007 for the first time since the Great Depression, according to a release from the National Association of Realtors. That made it more difficult for homeowners to sell or refinance properties encumbered by mortgages higher than the value of the houses themselves. Additionally, sales of existing homes fell in January to the lowest in at least nine years, NAR said.

Since January 2007, the median price of an existing home fell 4.6 percent to $201,100. The median price for a single-family home dropped 5.1 percent to $198,700, and condominium and co-op prices fell 1 percent to $220,400.

Mortgage companies including Fannie Mae and HSBC Finance have joined a U.S. Treasury Department-led effort to offer 30-day foreclosure freezes to give delinquent borrowers more time to arrange payment plans. Citigroup Inc., JPMorgan Chase & Co., Bank of America Corp., Wells Fargo & Co., Washington Mutual Inc. and Countrywide Financial Corp. have initially agreed to participate in the effort.

In a February 26 release, the Office of Federal Housing Enterprise Oversight said that while pockets of strength remain, the coasts and the Midwest showed the biggest declines.

OFHEO’s research confirmed NAR’s findings. U.S. home prices fell in the fourth quarter of 2007 according to OFHEO’s seasonally adjusted purchase-only house price index. The index, which is based on data from home sales, was 1.3 percent lower on a seasonally-adjusted basis in the fourth quarter than in the third quarter of 2007. This decline was substantially greater than the 0.3 percent price decline between the second and third quarters. Over the past year, prices fell 0.3 percent, as the fourth quarter decline erased earlier price gains.
However, OFHEO’s all-transactions House Price Index, which includes data from home sales and appraisals for refinancings, showed less weakness than the purchase-only index. The all-transactions HPI rose 0.1 percent over the latest quarter and 0.8 percent over the latest year.

OFHEO Director James B. Lockhart said, “Although prices for home purchases in the [fourth] quarter fell in every state except Maine, only 16 states plus the District of Columbia showed price declines for the full year 2007.”

“The year 2007 showed the first four-quarter decline in the purchase-only index since its earliest data in 1991,” Lockhart added. “However, both OFHEO’s purchase-only index and the all-transactions index show relatively greater house price stability than do other nationwide house price indexes. That may reflect, in part, the greater stability in the prime, conforming mortgage market served by the Enterprises than in other segments of the mortgage market,” said Lockhart.

“Given the recent turmoil in housing markets we thought it would be helpful to provide a greater amount of information about price trends,” Lockhart said.

“While the declines are significant and quite large in some areas, the market still needs to work through its overhang of unsold inventory,” said OFHEO Chief Economist Patrick Lawler. “How much further down that inventory will ultimately push prices will depend on a number of factors, including what happens to interest rates and the overall health of the U.S. economy,” Lawler said.

OFHEO’s purchase-only and all-transactions house price indexes track average house price changes in repeat sales or refinancings of the same single-family properties. The purchase-only index is based on more than five million repeat sales transactions, while the all-transactions index includes more than 34 million repeat transactions. Both indexes are based on data obtained from Fannie Mae and Freddie Mac for mortgages originated over the past 32 years.

The full report is available at www.ofheo.gov/media/pdf/4q07hpi.pdf.

A Message from Bob

2008-03-03T05:07:00.000-08:00

Dear friends,

As some of you know, I have decided to run for the US Senate against Lamar Alexander.
I will bring the energy, focus, purpose and determination of a Marine to this campaign and to my service in the United States Senate.

I am not so much offering myself as a candidate as I again am answering a call to service. America is in crisis. Our economy is in trouble, our schools are struggling to excel, our health care system leaves millions uncovered, and there are parts of Tennessee where the good paying jobs of the future are just a mirage. And in too many places, the cold wind of hunger and poverty whistle through open doors of despair.

Perhaps most critically, we find ourselves in two wars, with enemies lying in wait at home and abroad. Veterans return from war to heal their bodies and their minds only to find a broken system that leaves them without care. I fought in Vietnam as a Marine officer, and I cared for my Marines. I understand the rigors of war and the responsibility of our government to wage it properly and to care for those who fight it and for their families.

My wife Susan and I have built our lives in Tennessee and have been married for nearly 39 years. We raised our children Andrew (27) and Sarah (24) in the traditions of faith, service to country and belief in the ideals of the Democratic Party.

I hope you will support me in this effort as you supported me when I was your Party Chairman.

Thank you and Semper Fi,

Bob Tuke
Tuke for Tennessee
222 Fourth Ave. No.
Nashville, TN 37219
615-256-8585
rtuke@tntlaw.net

2007 Foreclosure Map

2008-02-27T11:46:00.000-08:00

Tennessee is clearly the worst in the South after Florida.

The River Flows Through

2008-01-20T08:53:00.000-08:00

Oops

Housing Starts Lowest Level Since May 1991.

2008-01-18T04:19:00.000-08:00

The contraction in new residential construction activity continued in December. Housing starts tumbled 14.2% last month to an annual rate of 1.01 million units compared to expectations for a more modest decline to a rate of 1.15 million. This was the lowest level of housing starts since May 1991. For all of 2007, 1.344 million housing units were started, 25.8% below the 2006 total and the lowest since 1995 when 1.361 million units were started. Weakness persisted in the single-family sector, with starts falling 2.9% on the month, 36.0% on the year to end at a rate of 794k. Multifamily starts, a highly volatile series, dropped over 40% in December to an annualized pace of 210k. Building permits, often used as an indicator of future building activity decreased 8.1% in December to an annual pace of 1.068 million. The pace of permit issuance suggests builders will continue to slash new starts as they try to work off high inventory levels amid sluggish new home sales. New residential starts are expected to weaken further from here and detract substantially from Q4 and Q1 economic growth.

Jobless claims fell 21k to 301k for the week that ended January 12. The large drop to such a low level is off trend for jobless claims in the past several weeks. Continuing claims for the prior week surged 66k suggests the pace of hiring remains weak and is contrary to the latest jobless claims reading. More weeks of initial claims data will be needed to understand if this week’s drop establishes a new lower trend.

Titans fire offensive coordinator Chow

2008-01-15T14:40:00.000-08:00

January 15, 2008
By JIM WYATTStaff Writer
The Titans have fired offensive coordinator Norm Chow after three seasons.

The Titans finished 21st in the NFL in total offense last season under Chow, who said Coach Jeff Fisher delivered the news by phone.

“I’m as shocked as the next guy,’’ Chow said Tuesday. “He said he wanted to go in a different direction."

Coach Jeff Fisher released a statement:

“Over the last week, we have done a lot of self-evaluation and I think we still have work ahead of us to reach our ultimate goal. I have informed Norm that he will not be retained as our offensive coordinator. I appreciate all of the hard work and contributions he made to the organization during his time here, but I have decided to go in a different direction and will start the process of finding a new offensive coordinator. We wish Norm and his family the best in their future endeavors.”

Chow, who had recently signed a two-year contract extension with the Titans, left town last week and has spent the last few days with his family in California. He was scheduled to return to Nashville before heading with the Titans coaching staff to Mobile, Ala., for Senior Bowl practices.

The 61-year-old coach said he’s unsure what he’ll do now. His name has been mentioned as a possibility for the offensive coordinator’s position at UCLA, where he earlier interviewed for the head coaching job that went to Rick Neuheisel.

“I don’t know what I am going to do,’’ Chow said. “I’m disappointed. I didn’t see this coming. No one had said a word about any of this until all of a sudden … I made a lot of good friends there.’’

Asked if he thought the next offensive coaching staff could make things work with quarterback Vince Young, who threw nine touchdowns and 17 interceptions last season, Chow replied: “Obviously Jeff didn’t think that I could. I thought I was. That’s the thing. I don’t know… but it’s going to take some patience.’’

The Titans had the NFL's 27th-ranked passing offense this season, one year after Young was the league's offensive rookie of the year.

Young was blindsided by the news of Chow's firing, according to a representative.“He was shocked,’’ said Mike Mu, Young's marketing agent.

“I broke the news to him. He thought I was kidding him and didn’t believe it.’’

Edmund Hillary, First Atop Everest, Dies - World on The Huffington Post

2008-01-10T15:50:00.000-08:00

Edmund Hillary, First Atop Everest, Dies: "WELLINGTON, New Zealand — Sir Edmund Hillary, the unassuming beekeeper who conquered Mount Everest to win renown as one of the 20th century's greatest adventurers, has died, New Zealand Prime Minister Helen Clark announced Friday. He was 88.

The gangling New Zealander devoted much of his life to aiding the mountain people of Nepal and took his fame in stride, preferring to be called 'Ed' and considering himself just an ordinary beekeeper.

'Sir Ed described himself as an average New Zealander with modest abilities. In reality, he was a colossus. He was an heroic figure who not only 'knocked off' Everest but lived a life of determination, humility, and generosity,' Clark said in a statement.

'The legendary mountaineer, adventurer, and philanthropist is the best-known New Zealander ever to have lived,' she said."

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Countrywide denies bankruptcy, but stock plunges

2008-01-08T13:24:00.000-08:00

Tue Jan 8, 2008 3:38pm EST
(Recasts first paragraph, adds analyst comment and byline)
By Jonathan Stempel
NEW YORK, Jan 8 (Reuters) - Countrywide Financial Corp (CFC.N: Quote, Profile, Research) on Tuesday denied market speculation it might seek bankruptcy protection, but its shares suffered their biggest decline since the 1987 stock market crash on growing concern the largest U.S. mortgage lender's problems will deepen.

In late afternoon trading, Countrywide shares were down $2.03, or 26.5 percent, at $5.61 on the New York Stock Exchange.

Shares of other mortgage-related companies also slid, including lender IndyMac Bancorp Inc (IMB.N: Quote, Profile, Research) and bond insurers MBIA Inc (MBI.N: Quote, Profile, Research) and Ambac Financial Group Inc (ABK.N: Quote, Profile, Research).

After traders reported rumors of a possible Countrywide bankruptcy, the company issued a statement that "there is no substance to the rumor that Countrywide is planning to file for bankruptcy, and we are not aware of any basis for the rumor that any of the major rating agencies are contemplating negative action relative to the company."

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In the Land of Many Ifs - New York Times

2008-01-02T06:03:00.000-08:00

In the Land of Many Ifs - New York Times:
By PETER S. GOODMAN and VIKAS BAJAJ

"For months, the American economy has been assailed by a wave of troubling news, from plunging housing prices to the soaring cost of oil, provoking gloomy talk of a possible recession. Yet so far the economy has found a way to shrug it all off and keep growing.

How much longer can the expansion carry on? As a new year unfolds, analysts expect a verdict soon: Either the negatives finally metastasize and drag the economy down, or a fresh source of growth emerges, helping to sustain consumer spending despite the ongoing worries about housing and tight credit.

“There are even odds of a recession,” said Mark Zandi, chief economist at Moody’s Economy.com. “It literally could go either way.”

The year that just ended was not for the faint of heart. As mortgage debt became synonymous with toxic waste, banks got spooked and tightfisted. Job growth slowed. Inflation fears grew. Still, consumers kept spending, and unemployment stayed flat. American companies found enough sales abroad to compensate for weakness at home.

The bursting housing bubble remains a locus of concern. An era of free-flowing credit and speculation has led to a far-flung empire of vacant, unsold homes — 2.1 million, or about 2.6 percent of the nation’s housing stock, Mr. Zandi said. Even in the worst years of recessions in the early 1980s and 1990s, the share of vacant homes did not exceed 1.9 percent."

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Sales Of New Houses Plummet

2007-12-29T07:34:00.000-08:00

Sales Of New Houses Plummet: "Sales Of New Houses Plummet
Rate Is Lowest In a Dozen Years

By Allan Lengel
Washington Post Staff Writer
Saturday, December 29, 2007; D01

New-home sales in November fell 9 percent from the previous month and were down 34 percent from a year earlier, more dismal figures for an industry facing bloated inventory, declining prices and mortgage woes.

'Things remain pretty weak,' said Keith Gumbinger, vice president of HSH Associates, a financial publishing group in New Jersey. 'We are still stumbling along in a rough patch. Inventory has to be cleared out.'

The Commerce Department reported yesterday that sales of new single-family houses declined to a seasonally adjusted annual rate of 647,000 in November, compared with 711,000 in October and 987,000 in November 2006. It was the lowest sales rate since April 1995.

The median price of new houses in November was $239,100, up from $229,500 the month before but down from $240,100 a year earlier.

The Commerce Department reported a 9.3-month inventory of unsold new homes in November, up from 8.5 months in October. A six-month inventory is considered a desirable goal.

Industry experts gave little weight to the bump in the median price, saying the figure may not accurately reflect the ongoing price decline."

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Tennessee ranks 11th in foreclosures

2007-12-20T14:40:00.000-08:00

Tennessee ranks 11th in foreclosures
Nashville Business Journal
The latest foreclosure numbers put Tennessee at No. 11 in the nation, RealtyTrac Inc. says.
The number of properties in some state of foreclosure in November was 3,862 in Tennessee, with one property foreclosed for every 683 households. That's up 7.5 percent from November 2006.

Nevada, Florida and Ohio posted the top foreclosure rates.

Nationwide, foreclosures were up 68 percent from November 2006, but down 10 percent from October. That drop in the past month provides a glimmer of hope that the foreclosure boom might be winding down, RealtyTrac chief executive officer James Saccacio says.

"The 10 percent drop in November is the first double-digit monthly decrease we've seen since April 2006," he says. "This could indicate that foreclosure activity has topped out for the year, but the true test of whether this ceiling will hold will come at the beginning of next year - when we anticipate that a seasonal surge in foreclosure filings and another possible wave of resetting mortgages could place further pressure on the housing market. But, if the trend of flat or decreasing foreclosure activity we've seen over the past three months continues in the first quarter, it would certainly bode well for 2008."

RealtyTrac includes properties that are in default, up for auction or owned by the lender.

All contents of this site © American City Business Journals Inc. All rights reserved.

Rooker to be New Property Assessor

2007-12-13T16:02:00.001-08:00

George Rooker is the only person to qualify to run for Property Assessor in the February Democratic Primary. No one qualified in the Republican Primary so he will win by acclamation.

I was surprised that he did not get a late filing opponent.

Anyway congratulations George

A Blue Dog at Christmas

2007-12-11T12:47:00.000-08:00

Sorry Jim I just couldn't resist

Nashville-area home prices rise as sales fall - Nashville, Tennessee - Tuesday, 12/11/07 - Tennessean.com

2007-12-11T09:17:00.000-08:00

Nashville-area home prices rise as sales fall - Nashville, Tennessee - Tuesday, 12/11/07 - Tennessean.com:

By GETAHN WARD Staff Writer

"Buyers of Nashville-area homes in November paid a median price nearly 3 percent higher than a year earlier, a rebound from the previous month that observers said reflects the stability of the local market.

The median price of a single-family home — the point at which half sold for more and half for less — rose to $179,900 from $174,900 in November 2006, according to figures released on Monday by the Greater Nashville Association of Realtors.

The gain came despite a 21 percent decline in sales of residential properties and the 16th consecutive month of year-over-year weaker single-family home sales. Inventories of homes on the market also continued to increase.

'It's a pretty good indicator of strength of the market,' said Richard Exton of Manier & Exton, a local real estate appraisal firm. Exton, however, said the median price still could fall in coming months as increased competition leads some sellers to make concessions, although he said results could fluctuate depending on how many sellers pull homes off the market rather than take a lower price.

More than 22,300 properties were on the market at the end of November, up from 17,175 a year earlier."

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New York Times - On Mortgage Relief, Who Gains the Most?

2007-12-07T05:32:00.000-08:00

By EDMUND L. ANDREWS
WASHINGTON, Dec. 6 — At least one thing is clear about President Bush’s plan to help people trapped by the mortgage meltdown: it is an industry-led plan, not a government bailout.

Although Mr. Bush unveiled the plan at the White House on Thursday, its terms were set by the mortgage industry and Wall Street firms. The effort is voluntary and it leaves plenty of wiggle room for lenders. Moreover, it would affect only a small number of subprime borrowers.

The plan was the target of criticism from consumer advocates who said its scope was too narrow, and from investment firms, who said it went too far. Others warned that the plan, by letting some stretched homeowners off the hook, could encourage more reckless borrowing in the future.

“The approach announced today is not a silver bullet,” said Treasury Secretary Henry M. Paulson Jr., who hammered out the agreement. “We face a difficult problem for which there is no perfect solution.”

The heart of Mr. Bush’s plan is a cautious attempt to help troubled homeowners by persuading financiers to freeze mortgages at low introductory rates for five years, but without actually forcing the hands of lenders and investors who hold the mortgages.

One of the financial industry’s lead negotiators estimated that at most 20 percent of subprime borrowers whose payments will increase sharply over the next 18 months — 360,000 out of 1.8 million people — would qualify for rapid consideration of a special five-year freeze on interest rates.

The number of people who actually obtain help would be smaller, because each borrower would face tests aimed at weeding out those considered too hopelessly in debt and those who make too much money to justify relief.

In one curious twist, the plan could eliminate many who have good credit scores or managed to improve their credit scores, because the good ratings would be a sign they do not need help.

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Home prices start to feel economic pinch - Triangle Business Journal:

2007-12-05T06:15:00.000-08:00

Home prices start to feel economic pinch - Nashville Business Journal:

Home prices are rising in most areas of Nashville, but some pockets are taking a hit from high inventory and showing falling prices.

Nine out of 38 ZIP codes in the Nashville area reported price declines in the last six months. The same study a year ago showed only one ZIP code with a price decline, says Jeff Jolly, a Crye-Leike Realtor who did the study.

The ZIP codes that cover Belle Meade and Germantown were the only two areas where sales increased. Those areas had the highest price jump of 27 and 20 percent respectively.
Overall, sales are down 16.6 percent in the six-month time frame.

Agents maintain the numbers show the market is slow, but remains strong when compared to other U.S. cities.

Wealthier buyers in areas such as Belle Meade are less affected by economic downturns, and Germantown has become a hot new spot to live in the downtown area, says Shirley Zeitlin, owner of Zeitlin & Co.

But new homes going up in Germantown which command higher prices and a few high-priced home sales in Belle Meade could have helped bring up the average, says Richard Exton, principal appraiser at Manier & Exton Real Estate Appraisers.

Rural Joelton reported a 9 percent drop, the highest of the 38 areas, and one Franklin ZIP code, 37069 - the most expensive with an average price of $550,300 this year - saw a 3 percent drop in average price from $567,344 last year. MORE

Deal in the Works To Freeze Rates on Subprime Loans - washingtonpost.com

2007-12-01T10:29:00.000-08:00

Deal in the Works To Freeze Rates on Subprime Loans - washingtonpost.com:

"Mortgage rates for homeowners with spotty credit histories would be temporarily frozen under a nearly completed agreement between top Bush administration officials and a broad alliance of Wall Street's biggest banks, mortgage investors, nonprofits and consumer groups.

The plan, which could be announced next week, is designed to prevent soaring mortgage delinquencies from escalating into a full-blown foreclosure crisis that would threaten the broader economy, according to several people involved in or familiar with the discussions. " MORE

The Subprime Crisis

2007-11-08T07:23:00.000-08:00

North to Step Down - Rooker to Run

2007-11-01T12:15:00.000-07:00

Tennessean.com Blogs » Blog Archive » North decides to move on: "by Michael Cass Davidson County Property Assessor Jo Ann North has decided not to seek re-election to a fifth term, she announced today. North, who has held the office since 1992, said she’ll endorse her top deputy, George Rooker, and serve as his campaign treasurer. The election will be held in February. “After consulting with my family, and great deliberation, I decided it was time to turn the reins over to someone else,” North said in a news release. “I can do so with great pride in the accomplishments achieved during my 15 years as assessor and with the knowledge that the office can be placed in good hands with George Rooker Jr. ready to step up and continue the progress.” The release said North implemented “numerous new technologies which have improved the accuracy of property appraisals.” North was the first woman ever elected to countywide office in Davidson County when she won an at-large seat on the Metro Council in 1979. She served in the council until 1991. She is married to Steve North, an attorney and former Circuit Court judge who serves on the Metro Sports Authority. Their son Mark is a member of the Metro school board. This entry was posted on Thursday, November 1st, 2007 at 12:42 pm and "

Question

2007-10-12T12:45:00.000-07:00

Why is gas $2.51 at the Home Depot in Smyrna, $2.59 at the Shell in Smyrna and $2.82 at Exxon and BP on Wedgewood and in Green Hills?

US House Staffers Advised They Need Vaccines before Attending NASCAR Events

2007-10-11T15:27:00.000-07:00

Update: The delegation was not attending NASCAR races but visiting health care centers, detention facilities and other operations where they could be exposed to communicable diseases.

Charlotte.com : Charlotte news, events, Panthers, Bobcats, jobs, cars, homes: "Staff who organized the trips advised the NASCAR-bound aides to get a range of vaccines before attending -- hepatitis A, hepatitis B, tetanus, diphtheria and influenza.

Rep. Robin Hayes, a Republican from Concord, took umbrage when he heard about it.

'I have never heard of immunizations for domestic travel, and as the representative for Concord, N.C., I feel compelled to ask why the heck the committee feels that immunizations are needed to travel to my hometown,' Hayes said in an Oct. 5 letter to Rep. Bennie Thompson, D-Miss., who chairs the Homeland Security panel.

'I have been to numerous NASCAR races, and the folks who attend these events certainly do not pose any health hazard to congressional staffers or anyone else,' Hayes added. Lauri Wilks, vice president of communications for Speedway Motorsports, which owns Lowe's Motor Speedway and other tracks, said Wednesday that immunizations aren't needed for the race. 'There's no health risk that we know of,' she said, laughing. 'We have never had any disease outbreak during one of our weekends.'"

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What ails you - Homes sales down 25%

2007-10-09T13:46:00.000-07:00

The following is the first paragraph sent to members of the Greater Nashville Association of Realtors announcing that September 2007 sales were down 25% compared to September 2006.

Greater Nashville home ales [sic]decreased 25% in September, Third quarter
figures are down 17% and year-to-date numbers are down 11%. Home prices have
actually continued to increase, as has inventory. You can click here for additional details on current closings, as well
as historical data.

Now obviously they meant home "sales", but I thought is was almost Freudian that what they were thinking was "ails"

Question

2007-10-06T07:34:00.000-07:00

Are they selling a new weight loss program?

A reminder of why I liked West Wing

2007-10-04T07:34:00.000-07:00

Home Sales and Prices Fall Sharply - New York Times

2007-09-28T07:11:00.000-07:00

Home Sales and Prices Fall Sharply - New York Times:

September 28, 2007
Home Sales and Prices Fall Sharply
By MICHAEL M. GRYNBAUM
Sales of new homes plunged in August to their slowest pace in more than seven years as tighter credit and rising inventories continued to weigh down the housing industry. The grim statistics could foreshadow further economic weakness in the fourth quarter, analysts said.

New-home purchases fell to an annual pace of 795,000, an 8.3 percent decline from July, as the number of months needed to sell off builders’ inventories rose to the highest level since March, the Commerce Department reported yesterday.

The median price for a new home was down 7.5 percent from a year earlier, to $225,700, the steepest monthly price drop since December 1970.

The sales figures were released as KB Home, a large Los Angeles builder, reported a $35.6 million loss in its fiscal third quarter, or 46 cents a share, in contrast to a profit of $153.2 million, or $1.90 a share, in the period a year earlier. KB Home had a 32 percent drop in revenue, to $1.54 billion.

The latest data gave a fuller picture of the distress in housing-related industries, where the subprime mortgage crisis has led to turmoil in the broader credit market and to increases in foreclosures. On Tuesday, the National Association of Realtors reported a 4.3 percent drop in August in sales of existing homes, and another large home builder, Lennar, recorded the largest quarterly loss in its history.

Last month’s drop-off in new-home sales was focused primarily in the South and the West, areas particularly hurt by subprime-lending problems. The seasonally adjusted pace of new-home sales is now down more than 21 percent from last year." MORE

Small donors rewrite fundraising handbook - Politico.com Print View

2007-09-26T15:09:00.000-07:00

Small donors rewrite fundraising handbook - Politico.com : "Small donors rewrite fundraising handbook By: Jeanne Cummings September 26, 2007 09:57 AM EST KANSAS CITY, Mo. — On a table near The Cashew’s upstairs bar, Nicola Heskett is laying out an array of pens and donor information forms as Jason Moehlman strolls in, still sweaty from the muggy evening’s air.

He slaps down a $20 bill to cover the recommended contribution for the Kansas City Lawyers for Barack Obama Happy Hour. “Uh, would you mind using your credit card? I think it’s a little cleaner,” says Heskett, 36, a first-time, small-time bundler for Obama who is helping to rewrite political fundraising playbooks this cycle.

The rise of the baby bundlers — people who ask friends and family to donate for a candidate and then direct the money to the campaign — is adding a face-to-face dimension to tactics used in 2004 to spur an explosion of Internet donations.

The influx of these new players, combined with unorthodox appeals by the candidates, also is fundamentally reshaping the parties’ donor bases."

Economic News 9-26-2007

2007-09-26T14:32:00.000-07:00

Durable goods orders fell 4.9% in August to reverse most of July's 6.1% gain. The sharp decline was led by a plunge in civilian aircraft orders. Orders for motor vehicles were also weak. Excluding the transportation sector durable goods orders fell 1.8%, still weak as demand for big ticket items was upset by financial market turmoil and labor market weakness in August. However, unfilled orders have been rising strongly; suggesting capital spending will increase this quarter.

The MBA mortgage applications index fell 2.8% to 654.2% for the week that ended September 21. The purchase index fell 7.3% on the week while refinance application increase 3.3%. The slight uptick in mortgage rates last week dampened purchase activity with many buyers possibly holding off until the Fed rate cuts pass through to longer term rates. Refinancing is holding up because of the high number of mortgagors encountering resets.

The Treasury's auction of $18 billion in 2-year notes was met with strong demand today. The notes received a high yield of 4.000% and garnered a 3.29 bid-to-cover ratio. Indirect bidders, which includes foreign central banks accounted for a strong 36% of the accepted bids. Treasuries reversed early losses after the strong auction results, to end little changed on the day. The 10-year note was up 1/32 to 100-31/32 to yield 4.62%.

Weak economic data today increased the chances of more fed rate cuts this year. Fed funds futures traders are pricing in an 86% chance for a quarter point rate cut in October and are pricing in a 64% chance of one in December. More data on tap this week will continue to shape the interest rate outlook. New home sales and the final print of Q2 GDP are due out Thursday and personal income, which includes a key inflation gauge, construction spending and consumer sentiment, will be out on Friday. The data will likely confirm housing's drag on economic growth and still subdued inflationary pressures.

John Cherry
LANDAMERICA VALUATION CORPORATION
Parkview One
925 North Point Parkway, Suite 400
Alpharetta, GA 30005

FT.com / World - Greenspan alert on US house prices

2007-09-17T08:41:00.000-07:00

FT.com / World - Greenspan alert on US house prices

US house prices are likely to fall significantly from their present levels, Alan Greenspan has told the Financial Times, admitting that there was a bubble in the US housing market.

In an interview ahead of the release on Monday of his widely-anticipated memoirs, the former chairman of the Federal Reserve said the decline in house prices “is going to be larger than most people expect”.

But Mr Greenspan said that his successors at the Fed – who meet on Tuesday to set interest rates – would have to be careful not to ease rates too aggressively, because the risk of an “inflationary resurgence” was greater now than when he was Fed chief.

Mr Greenspan said he would expect “as a minimum, large single-digit” percentage declines in US house prices from peak to trough and added that he would not be surprised if the fall was “in double digits”.

Greenspan Blasts Bush

2007-09-15T05:41:00.001-07:00

Former Federal Reserve Chairman Alan Greenspan "says the Republican party to which he has belonged all his life deserved to lose power last year for forsaking its small-government principles," the Wall Street Journal reports. "Greenspan delivers the withering critique in his memoir, The Age of Turbulence: Adventures in a New World."

"In the book, scheduled for public release Monday, Greenspan writes that he advised the White House to veto some bills to curb 'out of control' spending while the Republicans controlled Congress. He says President Bush's failure to do so 'was a major mistake.' Republicans in Congress, he writes, 'swapped principle for power. They ended up with neither. They deserved to lose.'"

According to Bloomberg, Greenspan rips Bush "for pursuing an economic agenda driven by politics rather than sound policy, with little concern for future consequences."

John Edwards Response

2007-09-14T06:36:00.000-07:00

Google Sponsors $30 Million Moon Contest

2007-09-13T13:42:00.000-07:00

Google Sponsors $30 Million Moon Contest

By ALICIA CHANG
LOS ANGELES (AP) — Google Inc. is bankrolling a $30 million spaceflight contest for private companies to safely land a robotic rover on the moon and beam back a gigabyte of images and video to Earth, the Internet search leader said Thursday.

The grand prize could be worth up to $25 million.

If the competition produces a winner, it would prove a major boon to the emerging private spaceflight industry and mark the first time that a nongovernment entity has flown a lunar space probe.

Google partnered with the X Prize Foundation for the moon challenge, which is open to companies around the world. The Santa Monica-based nonprofit prize institute is best known for hosting the Ansari X Prize contest that led to the first manned private spaceflight in 2004.
The race to the moon won't be easy or cheap. Teams have to raise money to build a roaming spacecraft that will be tough enough to survive a landing and have the smarts to complete a set of tasks. Each rover must also be equipped with high-definition video and still cameras to document the journey.

The rules call for a spacecraft to trek at least 1,312 feet across the lunar surface and return a package of data including self-portraits, panoramic views and near-real time videos. Participants are also responsible for securing a launch vehicle for the probe, either by building it themselves or contracting with an existing rocket company.

Whoever accomplishes the feat by the end of 2012 will receive $20 million. If there is no winner, the purse will drop to $15 million until the end of 2014 when the contest expires. There is also a $5 million second-place prize and $5 million in bonus money to teams that go beyond the minimum requirements.

Details of the Google X Prize are to be revealed at the WIRED NextFest technology show in Los Angeles.

The competition comes at a time of revived interest in lunar exploration among foreign governments since the Cold War space race. Governments including the United States and those in Europe and Asia are gearing up to return to the moon.

Japan's space agency, JAXA, plans to launch its long-delayed orbiter SELENE from a remote Pacific Island on Friday. NASA next year will rocket a lunar orbiter and impactor, the first of several lunar robotic projects before astronauts are sent to the moon next decade.

Government lunar missions can cost upward of hundreds of millions of dollars, but the X Prize Foundation and Google hope the private sector can do it for considerably less.

The partnership between Google and the X Prize Foundation comes as no surprise. Earlier this year, Google co-founder Larry Page hosted a star-studded charity auction for the foundation at the company's Mountain View headquarters. Page is a trustee of the X Prize Foundation.
Google has had previous forays into space albeit via the Internet by launching Google Mars and Google Earth, Web browser-based mapping tools that give users an up-close, interactive view with the click of a mouse.

The X Prize Foundation is also holding competitions in rapid genetic decoding and creating super-efficient vehicles, but the moon prize is by far the largest in its history since it was founded in 1995. The Google X Prize is second richest space prize, next to the $50 million pot being dangled by hotel magnate Robert Bigelow to any American team that can rocket a manned spacecraft into orbit by 2010.

2007-09-11T14:53:00.000-07:00

Election Results

It is Sunny - Go Vote

2007-09-11T14:01:00.000-07:00

The clouds have parted, the sun is shining, the temperature is pleasant, so you have no excuse not to get out and vote.

Inventory of Homes Pushes Nashville to a Buyers Market

2007-09-10T13:51:00.000-07:00

The Greater Nashville Assocaition of Realtors reports today that the inventory of homes exceeds a six month supply, 6.6 months to be exact. Any thing under six months is considered a sellers market. This is the first time in at least 7 years that the August inventory exceeds a six month supply, or a considered a buyers market.

There were 3,359 home closings reported for the month of August, according to figures provided by the Greater Nashville Association of Realtors®. This represents a decrease of 10.9 percent from the 3,772 closings reported for the same period last year.

Year-to-date closings for the Greater Nashville area are 24,778, down 9.2 percent compared to the 27,294 closings reported through mid-year 2006.

A comparison of sales by category for August is:

Closings - Residential - Aug. 2006 - 3,772

Closings - Residential - Aug. 2007 - 3,359

Closings - Condominium - Aug. 2006 - 3,036

Closings - Condominium - Aug. 2007 - 2,643

There were 2,896 sales pending at the end of August, compared with 3,440 sales that were pending at the same time last year. The median residential price during August was$189,719 and for a condominium it was $162,346. That compares with median residential and condominium prices at this time last year of $184,000 and $140,000 respectively. The average number of days on the market for a single-family residence was 64 days. Inventory at the end of August was 22,396. That compares with an inventory of 16,670 at the end of August 2006.

"Available inventory is considerably higher than last year at this time. That means buyers have more choices, so price and condition of properties for sale have become increasingly important," Richard Courtney said. "Based on the number of homes sold in August, the inventory represents about a 6.6 month supply, which is a reasonable balance in the housing industry. "

County:	1q ‘08	1q ‘07	+/-	% change
Cheatham	13	15	-2	-13.3%
Davidson	509	476	+33	6.9%
Dickson	17	11	+6	54.5%
Robertson	26	21	+5	23.8%
Rutherford	84	56	+25	50%
Wilson	24	9	+15	166%
Williamson	70	28	+42	150%