Wednesday, November 17, 2010
Pontiac is out-of-business
DETROIT (AP) -- Pontiac, whose muscle cars drag-raced down boulevards, parked at drive-ins and roared across movie screens, is going out of business on Sunday.
The 84-year-old brand, moribund since General Motors decided to kill it last year as it collapsed into bankruptcy, had been in decline for years. It was undone by a combination of poor corporate strategy and changing driver tastes. On Oct. 31, GM's agreements with Pontiac dealers expire.
http://finance.yahoo.com/news/Pontiac-maker-of-muscle-cars-apf-2786184062.html?x=0&sec=topStories&pos=2&asset=&ccode=
The 84-year-old brand, moribund since General Motors decided to kill it last year as it collapsed into bankruptcy, had been in decline for years. It was undone by a combination of poor corporate strategy and changing driver tastes. On Oct. 31, GM's agreements with Pontiac dealers expire.
http://finance.yahoo.com/news/Pontiac-maker-of-muscle-cars-apf-2786184062.html?x=0&sec=topStories&pos=2&asset=&ccode=
Friday, April 23, 2010
Most Dallas County home values to decrease, stay same
Most Dallas County home values to decrease, stay same
07:32 AM CDT on Friday, April 23, 2010
By KEVIN KRAUSE / The Dallas Morning News
kkrause@dallasnews.com
For the second year in a row, most Dallas County residents will either see no change or a decrease in their home values.
When appraisal notices are mailed in about two weeks, only 20 percent of the roughly 360,000 residential properties reappraised this year will increase in value, according to the Dallas Central Appraisal District.
Sixty percent will lose value, while 20 percent will see no change. The roughly 280,000 residential properties that were not reappraised this year also will not change.
Last year, 55 percent of residential properties that were reappraised decreased in value.
"The market is not as bad as last year. But we're still seeing the lingering effects of foreclosures," said Cheryl Jordan, spokeswoman for the appraisal district.
While this is good news for most homeowners because it could mean lower tax bills, it's putting pressure on the budgets of local governments that rely on property tax revenue. Dallas County is expecting a $56 million shortfall, while the city of Dallas is anticipating nearly twice that.
Dallas County officials have planned for an overall drop in property values this year of 8 percent to 9 percent when the tax roll is certified in July. Last year, property values fell by a little more than 3 percent – the largest drop since 1992.
If the county is unable to close the budget gap, commissioners might consider a tax rate increase. That would mean higher property taxes for some homeowners even if their values don't change this year.
Jordan said state law requires the district to reappraise all properties in the county at least once every three years.
The appraisal district, she said, relies on an annual study of sales figures by the University of Texas at Dallas to target certain areas of the county where values appear to be too high or low.
Appraisal notices are being sent only to homes that were reappraised this year, regardless of whether there was a value change, she said.
Foreclosures' effect
In his presentation to Dallas County commissioners Tuesday, Chief Appraiser Ken Nolan said the southern part of the county still hasn't recovered from the wave of home foreclosures that hit last year.
Nolan also said affluent communities like Highland Park and University Park are now starting to see foreclosures for the first time, which he predicted will continue through 2011. Home values in those areas are expected to drop for the first time in 20 years, he told commissioners.
The Park Cities are littered with for-sale signs and vacant lots where houses were torn down to make way for mansions that were never built, he said. Those teardowns, which were rampant a few years ago, have come to a halt, Nolan said.
Holland Brown, a tax consultant with North Texas Property Tax Services in Dallas, said affluent homes didn't see many value reductions last year because there weren't as many sales; homes sat on the market longer.
Since the appraisal district relies on sales to set values, the true value of the homes is only now becoming known, as more sales occur, Brown said.
Chris Bawcom, another partner in the firm, said the majority of the 60 percent of homes that will decrease in value this year most likely hadn't been reappraised in a while. He said he thinks that as market conditions improve, most homes next year will see no value change.
"I think it will start to flatten out after this year," Bawcom said. "We won't see as many decreases."
Coppell, an affluent suburb in the northwest part of the county, is generally the only place where new homes are being built, Nolan told commissioners this week. He said residents there should expect value increases this year.
But overall, home building in the county has slowed substantially. Residential building permits are down 46 percent this year, Nolan said.
Relief to some
For homeowners who have endured years of value increases, the news of falling appraisals again this year is a relief. In 2008, preliminary values rose about 13 percent. In 2007, the increase was 20 percent.
But for property owners trying to sell their property, the static or falling values aren't good news.
The decreased values don't mean there will be fewer protests this year. Many people are expected to protest, arguing their home value should have decreased or didn't decrease enough.
"We decreased a lot of values last year. But people still came in and said it's not enough," Jordan said.
The ability of homeowners to protest online for the first time this year is expected to drive that increase in value challenges, officials said.
While the worst may be over soon for the residential market, damage to commercial properties has yet to be seen, officials said.
Nolan told commissioners that commercial property values will decrease between 5 percent and 15 percent. He said he won't know for sure until owners present evidence during the summer protest season.
And the market could worsen if the expected wave of commercial foreclosures materializes, Nolan said.
BY THE NUMBERS: REAPPRAISALS
The Dallas Central Appraisal District is required to reappraise properties at least once every three years. Of the residential properties looked at this year, most will decrease in value or see no change, similar to last year.
RESIDENTIAL
Total accounts: 640,000
Reappraisal notices to be mailed this year: 360,000
Value decrease: 60 percent
No change: 20 percent
Value increase: 20 percent
COMMERCIAL
Total accounts: 73,000
Reappraisal notices to be mailed this year: 42,000
Value decrease: 10 percent
No change: 80 percent
Value increase: 10 percent
NOTE: Numbers are approximate.
SOURCE: Dallas Central Appraisal District
http://www.dallasnews.com/sharedcontent/dws/dn/yahoolatestnews/stories/042310dnmetdcad.41986f2.html
07:32 AM CDT on Friday, April 23, 2010
By KEVIN KRAUSE / The Dallas Morning News
kkrause@dallasnews.com
For the second year in a row, most Dallas County residents will either see no change or a decrease in their home values.
When appraisal notices are mailed in about two weeks, only 20 percent of the roughly 360,000 residential properties reappraised this year will increase in value, according to the Dallas Central Appraisal District.
Sixty percent will lose value, while 20 percent will see no change. The roughly 280,000 residential properties that were not reappraised this year also will not change.
Last year, 55 percent of residential properties that were reappraised decreased in value.
"The market is not as bad as last year. But we're still seeing the lingering effects of foreclosures," said Cheryl Jordan, spokeswoman for the appraisal district.
While this is good news for most homeowners because it could mean lower tax bills, it's putting pressure on the budgets of local governments that rely on property tax revenue. Dallas County is expecting a $56 million shortfall, while the city of Dallas is anticipating nearly twice that.
Dallas County officials have planned for an overall drop in property values this year of 8 percent to 9 percent when the tax roll is certified in July. Last year, property values fell by a little more than 3 percent – the largest drop since 1992.
If the county is unable to close the budget gap, commissioners might consider a tax rate increase. That would mean higher property taxes for some homeowners even if their values don't change this year.
Jordan said state law requires the district to reappraise all properties in the county at least once every three years.
The appraisal district, she said, relies on an annual study of sales figures by the University of Texas at Dallas to target certain areas of the county where values appear to be too high or low.
Appraisal notices are being sent only to homes that were reappraised this year, regardless of whether there was a value change, she said.
Foreclosures' effect
In his presentation to Dallas County commissioners Tuesday, Chief Appraiser Ken Nolan said the southern part of the county still hasn't recovered from the wave of home foreclosures that hit last year.
Nolan also said affluent communities like Highland Park and University Park are now starting to see foreclosures for the first time, which he predicted will continue through 2011. Home values in those areas are expected to drop for the first time in 20 years, he told commissioners.
The Park Cities are littered with for-sale signs and vacant lots where houses were torn down to make way for mansions that were never built, he said. Those teardowns, which were rampant a few years ago, have come to a halt, Nolan said.
Holland Brown, a tax consultant with North Texas Property Tax Services in Dallas, said affluent homes didn't see many value reductions last year because there weren't as many sales; homes sat on the market longer.
Since the appraisal district relies on sales to set values, the true value of the homes is only now becoming known, as more sales occur, Brown said.
Chris Bawcom, another partner in the firm, said the majority of the 60 percent of homes that will decrease in value this year most likely hadn't been reappraised in a while. He said he thinks that as market conditions improve, most homes next year will see no value change.
"I think it will start to flatten out after this year," Bawcom said. "We won't see as many decreases."
Coppell, an affluent suburb in the northwest part of the county, is generally the only place where new homes are being built, Nolan told commissioners this week. He said residents there should expect value increases this year.
But overall, home building in the county has slowed substantially. Residential building permits are down 46 percent this year, Nolan said.
Relief to some
For homeowners who have endured years of value increases, the news of falling appraisals again this year is a relief. In 2008, preliminary values rose about 13 percent. In 2007, the increase was 20 percent.
But for property owners trying to sell their property, the static or falling values aren't good news.
The decreased values don't mean there will be fewer protests this year. Many people are expected to protest, arguing their home value should have decreased or didn't decrease enough.
"We decreased a lot of values last year. But people still came in and said it's not enough," Jordan said.
The ability of homeowners to protest online for the first time this year is expected to drive that increase in value challenges, officials said.
While the worst may be over soon for the residential market, damage to commercial properties has yet to be seen, officials said.
Nolan told commissioners that commercial property values will decrease between 5 percent and 15 percent. He said he won't know for sure until owners present evidence during the summer protest season.
And the market could worsen if the expected wave of commercial foreclosures materializes, Nolan said.
BY THE NUMBERS: REAPPRAISALS
The Dallas Central Appraisal District is required to reappraise properties at least once every three years. Of the residential properties looked at this year, most will decrease in value or see no change, similar to last year.
RESIDENTIAL
Total accounts: 640,000
Reappraisal notices to be mailed this year: 360,000
Value decrease: 60 percent
No change: 20 percent
Value increase: 20 percent
COMMERCIAL
Total accounts: 73,000
Reappraisal notices to be mailed this year: 42,000
Value decrease: 10 percent
No change: 80 percent
Value increase: 10 percent
NOTE: Numbers are approximate.
SOURCE: Dallas Central Appraisal District
http://www.dallasnews.com/sharedcontent/dws/dn/yahoolatestnews/stories/042310dnmetdcad.41986f2.html
Tuesday, April 20, 2010
Fannie Mae says unsold homes are slowing recovery
Tuesday, April 20, 2010
ECONOMY
Fannie: Excess homes weighing on recovery
Fannie Mae's economic and mortgage market analysis group said Monday that the housing market is stabilizing but that excess inventory continues to hinder a recovery.
The D.C.-based mortgage giant released a report that projects economic growth of 3.1 percent for 2010. Doug Duncan, Fannie's chief economist, said the unwinding of programs such as mortgage-backed securities are evidence of viability for the industry without federal aid.
New-home sales are at record lows and will remain slow, Fannie said, but it pointed to signs of recovery in existing-home sales.
http://www.washingtonpost.com/wp-dyn/content/article/2010/04/19/AR2010041905368.html?wprss=rss_business
ECONOMY
Fannie: Excess homes weighing on recovery
Fannie Mae's economic and mortgage market analysis group said Monday that the housing market is stabilizing but that excess inventory continues to hinder a recovery.
The D.C.-based mortgage giant released a report that projects economic growth of 3.1 percent for 2010. Doug Duncan, Fannie's chief economist, said the unwinding of programs such as mortgage-backed securities are evidence of viability for the industry without federal aid.
New-home sales are at record lows and will remain slow, Fannie said, but it pointed to signs of recovery in existing-home sales.
http://www.washingtonpost.com/wp-dyn/content/article/2010/04/19/AR2010041905368.html?wprss=rss_business
Why Texas is doing so much better economically than the rest of the nation.
Once a separate nation, Texas has recently been behaving more like an independent economic republic than a regular state. While it hasn't been immune to the problems plaguing the nation, the Texas housing market, employment rate, and overall economic growth are relatively strong. Chalk some of this up to accidents of geology and geography. But Texan prosperity also reflects the conscious efforts of a once-parochial place to embrace globalization.
On several measures of economic stress, Texas is doing quite well. The state unemployment rate is 8.2 percent—high, but still one many states would envy. (California's is 12.5 percent; Michigan's is 14.1 percent.) It entered recession later than the rest of the country—Texas was adding jobs through August 2008—and started slowly adding jobs again last fall, thanks mostly to its great position in the largely recession-proof energy industry.
The Texas housing market also has fared better than many. The mortgage delinquency rate (the portion of borrowers three months behind on payments) is 5.78 percent, compared with 8.78 nationwide, according to First American CoreLogic. That's partly because relaxed zoning codes and abundant land kept both price appreciation and speculation down. "House prices didn't experience a bubble in the same way as the rest of the nation," said Anil Kumar, senior economist at the Federal Reserve Bank of Dallas. But it's also because of two attributes not commonly associated with the Longhorn State: financial restraint and comparatively strong regulation. Unlike many of its neighbors, Texas has state laws that prohibited consumers from using home-equity lines of credit to increase borrowing to more than 80 percent of the value of their homes. The upshot: Dallas housing prices have fallen only 7 percent from their 2007 peak, according to the Case-Shiller index.
As it has for decades, energy is driving Texas' economy. But it's not because the state's wells are gushing crude. In November 2009, Texas wells produced 1.08 million barrels per day, about half as much as they did in the late 1980s. In recent years, natural gas has been undergoing a renaissance. The state's production rose about 35 percent between 2004 and 2008. And Texas has received a big boost from a different, renewable source of energy: wind.
In this area, Texas' size and history of independence has enabled it to jump-start a new industry. The state has its own electricity grid, which is not connected to neighboring states. That has allowed it to move swiftly and decisively in deregulating power markets, building new transmission lines, and pursuing alternative sources. "We can build transmission lines without federal jurisdiction and without consulting other states," said Paul Sadler, executive director of the Austin-based Wind Coalition. Ramping up wind power nationally would require connecting energy fields—the windswept, sparsely populated plains—to population centers on the coasts and in the Midwest. Texas' grid already connects the plains of West Texas with consumers in Dallas, Austin, San Antonio, and Houston. Texas recently surpassed 10,000 megawatts of capacity, the most by far of any state and enough to power 3 million homes, Sadler says. Wind energy is also powering employment—creating more than 10,000 jobs so far. And it and has attracted foreign companies, including Danish turbine maker Vestas, Spanish renewable-energy giant Iberdrola, and Shell.
Texas today is more suburban engineer than urban cowboy, more Michael Dell than J.R. Ewing. Austin, home to the University of Texas, the state government, and Dell Computer, has a 7 percent unemployment rate. Yes, ExxonMobil is based in Irving.* But the state's energy complex is increasingly focused more on services and technology than on intuition and wildcatting. And it is selling those services into the global oil patch. Russian, Persian Gulf, and African oil developers now come to Houston for equipment, engineering, and software.
While its political leaders may occasionally flirt with secession, Texas thrives on connection. It surpassed California several years ago as the nation's largest exporting state. Manufactured goods like electronics, chemicals, and machinery account for a bigger chunk of Texas' exports than petroleum does. In the first two months of 2010, exports of stuff made in Texas rose 24.3 percent, to $29 billion, from 2009. That's about 10 percent of the nation's total exports. There are more than 700,000 Texan jobs geared to manufacturing goods for export, according to Patrick Jankowski, vice president of research at the Greater Houston Partnership. "A lot of it is capital goods that the Asian, Latin American, and African [countries] are using to build their economies."
Thanks to that embrace of globalization, the Texas turnaround may help lead the nation in its economic turnaround. Texans have always had the ability to think big. Now that their state has become a player in the global economy, we can expect a new kind of swagger
http://www.slate.com/id/2250999/?yahoo=y
On several measures of economic stress, Texas is doing quite well. The state unemployment rate is 8.2 percent—high, but still one many states would envy. (California's is 12.5 percent; Michigan's is 14.1 percent.) It entered recession later than the rest of the country—Texas was adding jobs through August 2008—and started slowly adding jobs again last fall, thanks mostly to its great position in the largely recession-proof energy industry.
The Texas housing market also has fared better than many. The mortgage delinquency rate (the portion of borrowers three months behind on payments) is 5.78 percent, compared with 8.78 nationwide, according to First American CoreLogic. That's partly because relaxed zoning codes and abundant land kept both price appreciation and speculation down. "House prices didn't experience a bubble in the same way as the rest of the nation," said Anil Kumar, senior economist at the Federal Reserve Bank of Dallas. But it's also because of two attributes not commonly associated with the Longhorn State: financial restraint and comparatively strong regulation. Unlike many of its neighbors, Texas has state laws that prohibited consumers from using home-equity lines of credit to increase borrowing to more than 80 percent of the value of their homes. The upshot: Dallas housing prices have fallen only 7 percent from their 2007 peak, according to the Case-Shiller index.
As it has for decades, energy is driving Texas' economy. But it's not because the state's wells are gushing crude. In November 2009, Texas wells produced 1.08 million barrels per day, about half as much as they did in the late 1980s. In recent years, natural gas has been undergoing a renaissance. The state's production rose about 35 percent between 2004 and 2008. And Texas has received a big boost from a different, renewable source of energy: wind.
In this area, Texas' size and history of independence has enabled it to jump-start a new industry. The state has its own electricity grid, which is not connected to neighboring states. That has allowed it to move swiftly and decisively in deregulating power markets, building new transmission lines, and pursuing alternative sources. "We can build transmission lines without federal jurisdiction and without consulting other states," said Paul Sadler, executive director of the Austin-based Wind Coalition. Ramping up wind power nationally would require connecting energy fields—the windswept, sparsely populated plains—to population centers on the coasts and in the Midwest. Texas' grid already connects the plains of West Texas with consumers in Dallas, Austin, San Antonio, and Houston. Texas recently surpassed 10,000 megawatts of capacity, the most by far of any state and enough to power 3 million homes, Sadler says. Wind energy is also powering employment—creating more than 10,000 jobs so far. And it and has attracted foreign companies, including Danish turbine maker Vestas, Spanish renewable-energy giant Iberdrola, and Shell.
Texas today is more suburban engineer than urban cowboy, more Michael Dell than J.R. Ewing. Austin, home to the University of Texas, the state government, and Dell Computer, has a 7 percent unemployment rate. Yes, ExxonMobil is based in Irving.* But the state's energy complex is increasingly focused more on services and technology than on intuition and wildcatting. And it is selling those services into the global oil patch. Russian, Persian Gulf, and African oil developers now come to Houston for equipment, engineering, and software.
While its political leaders may occasionally flirt with secession, Texas thrives on connection. It surpassed California several years ago as the nation's largest exporting state. Manufactured goods like electronics, chemicals, and machinery account for a bigger chunk of Texas' exports than petroleum does. In the first two months of 2010, exports of stuff made in Texas rose 24.3 percent, to $29 billion, from 2009. That's about 10 percent of the nation's total exports. There are more than 700,000 Texan jobs geared to manufacturing goods for export, according to Patrick Jankowski, vice president of research at the Greater Houston Partnership. "A lot of it is capital goods that the Asian, Latin American, and African [countries] are using to build their economies."
Thanks to that embrace of globalization, the Texas turnaround may help lead the nation in its economic turnaround. Texans have always had the ability to think big. Now that their state has become a player in the global economy, we can expect a new kind of swagger
http://www.slate.com/id/2250999/?yahoo=y
Thursday, April 15, 2010
Rents Rising as More Americans Can’t Afford to Buyby JON PRIOR
Purchasing a home remains unaffordable for many Americans despite continued declines in home prices and record low mortgage rates. And in the search for affordable housing, many consumers are relying on an already strained apartment market for temporary accommodation, as housing advisers urge Congress to implement government-backed rental assistance.
The income needed to purchase a median-priced home dropped in 93% of the markets studied by the Center for Housing Policy – the research affiliate to the National Housing Conference, an advocate for policies that promote affordable housing. Yet, despite the drop, many Americans still do not earn enough to own a home.
The study compared and ranked the costs of buying or renting a home in more than 200 US metropolitan areas with the salaries of more than 60 jobs.
Consumers are renting more, according to the survey, but the typical rent for a two-bedroom home rose in 89% of those markets to meet the demand. The rise in rents and drop in homeownership costs are most noteworthy in Florida, where the income needed to buy a median-priced home fell more than 20% in 12 metro markets. Meanwhile, two-bedroom rents rose across all of the Florida markets by nearly 6%.
And with deal-home prices rising, for instance foreclosures hovering near record heights, distressed consumers are finding refuge in the apartment sector. In reaction, Bob DeWitt, CEO of GID Investment Advisers testified to Congress yesterday on behalf of the National Multi Housing Council (NMHC), that government support is needed for the apartment industry. He warned lawmakers not to create a capital shortage for the lower-profile sector as they contemplate ways to reduce taxpayer exposure to the secondary market.
“This is important,” he said, “because the nation is increasingly relying on apartments as fundamental changes in our society are changing the types of housing we need to build. Housing expert Professor Arthur Nelson of the University of Utah projects that half of all housing built over the next 10 years will need to be rental housing to meet the dramatically changing landscape of demand
http://www.housingwire.com/2010/03/24/rents-rising-as-more-americans-can%E2%80%99t-afford-to-buy/
The income needed to purchase a median-priced home dropped in 93% of the markets studied by the Center for Housing Policy – the research affiliate to the National Housing Conference, an advocate for policies that promote affordable housing. Yet, despite the drop, many Americans still do not earn enough to own a home.
The study compared and ranked the costs of buying or renting a home in more than 200 US metropolitan areas with the salaries of more than 60 jobs.
Consumers are renting more, according to the survey, but the typical rent for a two-bedroom home rose in 89% of those markets to meet the demand. The rise in rents and drop in homeownership costs are most noteworthy in Florida, where the income needed to buy a median-priced home fell more than 20% in 12 metro markets. Meanwhile, two-bedroom rents rose across all of the Florida markets by nearly 6%.
And with deal-home prices rising, for instance foreclosures hovering near record heights, distressed consumers are finding refuge in the apartment sector. In reaction, Bob DeWitt, CEO of GID Investment Advisers testified to Congress yesterday on behalf of the National Multi Housing Council (NMHC), that government support is needed for the apartment industry. He warned lawmakers not to create a capital shortage for the lower-profile sector as they contemplate ways to reduce taxpayer exposure to the secondary market.
“This is important,” he said, “because the nation is increasingly relying on apartments as fundamental changes in our society are changing the types of housing we need to build. Housing expert Professor Arthur Nelson of the University of Utah projects that half of all housing built over the next 10 years will need to be rental housing to meet the dramatically changing landscape of demand
http://www.housingwire.com/2010/03/24/rents-rising-as-more-americans-can%E2%80%99t-afford-to-buy/
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