U.S. home builder sentiment rises in May

• On Monday May 18, 2009, 1:01 pm EDT

WASHINGTON (Reuters) – U.S. homebuilder sentiment jumped to its highest level in eight months in May, a private survey showed on Monday, supporting views that the three-year housing slump might be close to an end.

The National Association of Home Builders/Wells Fargo Housing Market Index rose to 16 from 14 in April, in line with market expectations.

The NAHB attributed the second consecutive monthly increase in the gauge — which measures builder confidence in the market for newly built, single family homes — to “the best home buying conditions of a lifetime.”

“This continued increase indicates that home builders feel we’re at or near the bottom of the market and that positive signs lie ahead for builders and potential home buyers, provided that builder access to production credit significantly improves,” said NAHB chief economist David Crowe.

Other housing indicators have recently shown a sharp slowing in the pace of the market’s decline, raising optimism a bottom was not too far away.

The collapse of domestic house prices and the subsequent global credit crisis were the main catalysts for the U.S. recession, now in its 17th month.

The report also showed two out of three subindexes of the Housing Market Index rising in May. The current sales conditions gauge climbed two points to 14, while the sales expectations measure for the next six months rose three points to 27. The traffic of prospective buyers index was unchanged at 13 in May.

(Reporting by Lucia Mutikani; Editing by Andrea Ricci)

WASHINGTON, DC, May 13, 2009 (MARKETWIRE via COMTEX) — As Realtors(R) from across the country gather this week for the National Association of Realtors(R) Realtors(R) Midyear Legislative Meetings & Trade Expo, they come committed to continue working with Congress and the administration on efforts to stimulate the housing market. The Realtors(R)’ agenda also includes measures to protect commercial real estate markets and ensure the availability of affordable healthcare to the self-employed and small businesses.

The Realtors(R) launched this year’s meeting with its first ever “Real Estate Summit: Advancing the U.S. Economy.” The summit brought together some of the most influential and cutting-edge experts in the fields of housing, finance, government, academia and the media to find solutions to today’s economic conditions and move the economy as a whole toward recovery. The findings of the summit will be presented to Members of Congress during Realtors(R)’ visits to Capitol Hill throughout the week.

“Housing is the engine of economic growth, and real estate is the road to economic recovery,” said NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth. “With many of the country’s current problems resting on a wobbly foundation of declining home prices, rampant foreclosures and increasing job loss, our members will be asking Congress to pass further legislation that moves the housing market forward. Last year, NAR asked Congress to pass housing stimulus legislation, which passed and is beginning to show results. However, the work is far from finished.”

This year, NAR is advocating expanding the $8000 first-time home buyer tax credit to include all home buyers at all income levels. In addition, Congress should make permanent the 2008 loan limit increase formula and loan limit caps, as well as fortify Fannie Mae and Freddie Mac to ensure continued availability of capital for mortgage lending throughout all mortgage markets and in all conditions.

Although housing and related financial issues remain NAR’s principal focus in the current economy, small business health care also remains a legislative priority. “We will continue to push for health care reform that offers affordable health care options to the self-employed and small businesses. Congress and the Obama administration must address the inequities faced by those that do not have an employer-assisted plan covering all or part of the individual’s health care insurance premiums,” said McMillan.

In addition, Realtors(R) will urge that Congress move to stabilize and restore liquidity to commercial real estate markets. “Having a sound and functioning commercial and multifamily real estate sector is critical to our country’s economic growth and development,” McMillan said.

NAR is also working with Congress to develop reasonable energy efficiency practices. NAR supports reasonable, incentive-based approaches to encourage energy efficiency and opposes “energy labeling.” “Energy labels don’t save energy; home and building improvements do,” said McMillan.

“We are excited to be here at this important juncture. More than 8,000 Realtors(R) from across the country have come to Washington to remind Congress that a renewed, revitalized and robust real estate market is essential to generating commerce and helping families build wealth and stability,” McMillan said.

The National Association of Realtors(R), “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

Information about NAR is available at www.realtor.org. News releases are posted in the Web site’s “News Media” section in the NAR Media Center.

REALTOR(R) is a registered collective membership mark which may be used only by real estate professionals who are members of the NATIONAL ASSOCIATION OF REALTORS(R) and subscribe to its strict Code of Ethics. Not all real estate agents are REALTORS(R). All REALTORS(R) are members of NAR.

For further information contact:
Mary Trupo
202/383-1007
Email Contact

SOURCE: National Association of Realtors

Realtors Urge Home Buyer Tax Credit Expansion

By DIANA GOLOBAY
May 13, 2009 8:47 AM CST

The National Association of Realtors (NAR) today called for expansion of the $8,000 first-time home buyer tax credit to include all home buyers at all income levels.

The push for a broadened tax credit comes after US Department of Housing and Urban Development secretary Shaun Donovan announced home buyers pursuing Federal Housing Administration-insured mortgages may soon use the tax credit as a down payment at the closing table.

An expanded tax credit, combined with HUD’s initiative to make the credit available at the closing table for down payment purposes — called ‘monetization’ of the tax credit in the industry — would make federal assistance available to anyone pursuing a government-insured mortgage.

NAR, from its legislative summit this week, also urged Congress to make the ‘08 loan limit increase formula and loan limit caps permanent, and to “fortify” mortgage giants Fannie Mae (FNM: 0.77 -6.10%) and Freddie Mac (FRE: 0.80 -6.98%) to ensure the continued availability of capital for mortgage lenders.

“Housing is the engine of economic growth, and real estate is the road to economic recovery,” says Charles McMillan, NAR president and Dallas-based broker, in a statement today. “With many of the country’s current problems resting on a wobbly foundation of declining home prices, rampant foreclosures and increasing job loss, our members will be asking Congress to pass further legislation that moves the housing market forwa

By Nick Timiraos

One of the problems during the housing boom was that many people were able to buy a home with little or no money down, giving them little financial incentive to work hard to hold on when times got rough.

Now U.S. housing officials are working on a plan that would essentially allow some first-time buyers to purchase homes by paying little money upfront. Rather, they would be able to put an $8,000 income tax credit for first-time buyers towards their down payment on loans backed by the Federal Housing Administration. The idea is to allow home buyers to “monetize” the tax credit. Right now, home buyers must wait until they file their taxes to receive the credit.

The FHA is finalizing a program that would allow approved lenders, non-profits, and state and local governments to fund short-term loans that could be used as down payments to be repaid once the borrower received the tax credit. Once they received their tax credit, they would pay off the short-term loan and put equity into their home.

The FHA requires a minimum 3.5% down payment on loans backed by the agency, which means that buyers could put little or nothing down on homes up to $230,000. “It is close to having nothing down,” says Thomas Lawler, an independent housing economist.

The proposal, hailed by home builders and Realtors, is drawing some comparisons to the no money down programs that the FHA has worked to shut down. Congress ended a program last year that allowed home sellers to fund down payments to home buyers through nonprofit groups, and the FHA has blamed that program for an outsized share of loan defaults. Under that program, nonprofit groups would “gift” the 3% minimum down payment to a home buyer, often funded by the seller of the home. Buyers would move into the home without paying any of their own money for the down payment.

“Although it remains to be seen how the program is actually implemented, the plan resembles former seller-funded down payment assistance programs,” writes housing analyst Ivy Zelman in a research note Wednesday. “We remain concerned that the lenient underwriting standards, low down-payment requirements and now the ability of FHA borrowers to purchase a home without putting any of their own equity into the purchase is creating a tremendous risk for the program and taxpayers in the future.”

Several states, including Pennsylvania and New Mexico, had already instituted similar programs. Housing Secretary Shaun Donovan outlined the plan Tuesday during a speech to the National Association of Realtors. “We think the policy is a real win for everyone,” he said.

Congress approved the tax credit in February’s stimulus bill, which provides up to $8,000 for first-time home buyers on a new or existing home. The tax credit expires Dec. 1.

Readers, would you be more likely to buy a new home if you could spend this tax credit before you file your tax returns?

News worthy because after not taking my wife on a cruise for the past 5 years, this is the one we went on..

The swine flu outbreak in Mexico caused dozens of cruise ships to forgo trips to sunny resorts like Puerto Vallarta and Cabo San Lucas, and to instead weigh anchor at considerably less exotic destinations such as Santa Catalina Island and San Diego.

In most cases, fast-thinking cruise ship operators came up with ways to keep passengers from mutinying, including coupons for onboard amenities and credits for future trips.

But the flu bug sent about 3,000 passengers of one cruise ship, the Carnival Splendor, on a one-way voyage to the land of lousy customer service.

“They just didn’t care about us,” said Encino resident Devorah Torres, 58, a passenger on the vessel. “As far as Carnival was concerned, we were nothing but cattle to them.”

For any service company interested in a lesson in how not to treat customers, look no further than the ill-fated voyage of the Splendor.

The ship departed from Long Beach on Sunday, April 26, one day before the Centers for Disease Control issued a travel advisory recommending that people “avoid all nonessential travel to Mexico.”

Torres and her husband, Marty Hoffman, 58, spent more than $2,000 for almost a week of sun and fun along the Mexican Riviera.

“We’ve done this trip before,” Torres said. “It’s great. It’s the kind of trip where you just throw on your shorts and go.”

The cruise went well at first. It was chilly as the ship headed south, but the weather gradually warmed. Passengers were excited about reaching Puerto Vallarta.

They never got there. On Tuesday, April 28, the Splendor anchored unexpectedly off Cabo San Lucas. Passengers were informed that because of the flu outbreak, all Mexican stops were being canceled. The ship would instead turn around and head to San Francisco, where the weather was cold and rainy.

The Splendor’s captain, Claudio Cupisti, issued a statement saying the ship would make a “courtesy call” back at Long Beach en route to San Francisco for those who wanted to disembark early.

“It is important you know that there will be no refund for unused portions of your cruise,” he said.

The captain also said that Carnival’s “Vacation Guarantee” wouldn’t apply.

That’s a big deal. Carnival boasts on its website of being the only cruise line to essentially offer a money-back guarantee if you’re unhappy with your holiday.

“If you are not completely satisfied with your cruise vacation experience,” it says, “all you need to do is notify us before arrival at the first port of call and you must debark at your ship’s first non-U.S. port of call. Carnival will refund the unused portion of your cruise fare and pay your flight back.”

Jennifer de la Cruz, a spokeswoman for Carnival Cruise Lines, confirmed in an e-mail that no refunds would be offered to passengers on the flu-fleeing trip.

“In this highly unusual situation, the parameters of the Vacation Guarantee would not have applied,” she said. She declined to elaborate.

“We apologize that we were not able to provide the itinerary that people anticipated,” De la Cruz said.

Los Angeles resident Margaret Zito, 62, another passenger on the ship, said the grumbling among passengers began almost as soon as the Splendor turned around. People were phoning their lawyers. Members of a wedding party aboard the ship were reduced to tears.

“The whole thing was an absolute nightmare,” Zito said. “I’ve never seen so much negativity on a cruise ship before.”

It’s not that Carnival wasn’t within its rights. The company’s contract with passengers stipulates that it reserves the right to change itineraries due to unforeseen circumstances.

And the Vacation Guarantee is specific about requiring passengers to disembark at a non-U.S. port to get their refunds. The Splendor never docked in Mexico.

But why be so rough with people who’d turned to you for a little rest and relaxation, and who you hope will do so again?

While most cruise lines sought to appease disgruntled passengers by offering food and drink and other freebies, the passengers of the Splendor were basically told to take their lumps.

I asked De la Cruz if this was any way to treat steady customers. She said only that Carnival was following “standard protocol for missed ports when an itinerary is impacted by events beyond our control.”

Standard protocol for Carnival apparently does include being nice to anyone who isn’t already stuck on your boat.

The Splendor was scheduled to set sail again today from Long Beach. Its original itinerary of Puerto Vallarta, Mazatlan and Cabo San Lucas has been changed to Victoria and Vancouver in Canada.

Passengers were told in advance that they’d be given a $100 onboard credit for making the trip. Those who didn’t want to visit Canada were told they could instead book a different cruise at any time before December 2010.

Hoffman said he wasn’t pleased that the company was offering perks to travelers that were denied to passengers on his trip.

“I can tell you this,” he said. “We’ll never sail with Carnival again.”