Tucson Region

The Tucson Unified School District is trying to help a few Southwest Side schools that have a hard time retaining strong educators — by getting some of their teachers into nearby homes.

Teach Within Reach, the district's first home-buying assistance program, will rely on $46,000 in grants from the city's Housing Trust Fund, which will provide eight employees with up to $5,000 for a first-time home purchase.

To qualify, employees must make 80 to 100 percent of the median earnings for Tucson. A single employee would be capped at $38,500, a family of two at $44,000 and a family of four at $55,000.

The district will partner with two non-profits to work out credit and income eligibility, and will provide classes in long-term financial planning.

Richard Foster, the district's recruiter, said the program will be used to keep existing teachers, instead of as an incentive to lure new ones to the area.

"We're going to be strategic in how we use this opportunity," he said. "We believe that if we can help employees get closer to work, by helping them purchase reasonably priced homes in the Southwest quadrant, we'll have a better chance at keeping them in those schools." read more

It’s a Great Time for the First Time Home Buyer to Purchase a New Home

While reports continue to highlight the challenges in today’s housing market, it still is a good time for first time buyers to purchase a new home instead of renting or choosing a resale home. Mortgage rates are near historical lows, current FHA home loans allow up to $346,000 and with a down payment of only 3% along with reasonably good credit and proof of employment, home ownership can become a reality for those that previously thought they had no other option but to rent.

Many resale homes are hitting the market at fire-sale prices because of foreclosures and short sales. However, these homes may be less than appealing. On the other hand, due to excess inventory and the pressures of a sluggish market, many homebuilders are pricing new homes as low as the $100s. Ready-to-move-into new homes save buyers the time, energy and money it may take to turn an existing house into one that fits their specific lifestyle needs and wants.

Following are a few key facts first time home buyers should remember when deciding whether to buy new or existing properties.

• New homes require far less maintenance than an older home.
• New homes offer customized options and upgrades including the latest technology and security features.
• New homes are built to updated building and safety codes.
• New home floorplans offer more efficient use of space and storage.
• New homes offer energy efficient design and materials, better lumber, improved insulation and no lead or asbestos.
• New Homes can be personalized by Buyers providing input into structural design and interior decorating decisions.
• New homes offer construction and appliance warranties.
• New communities often offer more recreational facilities such as pools, tennis courts, clubhouses, grills, parks, jogging trails and play lots for children.
• Most new communities have homeowners associations, which help protect property values.
• Everything is new! Paint, flooring, countertops, cabinets, appliances-these features are in pristine condition and the new home owner will be the first to enjoy them. read more
  

California Luxury Home Values Decrease

California luxury home prices declined in the third quarter of 2008 from a year ago and from the second quarter of 2008, according to the First Republic Prestige Home Index(TM) by First Republic Bank, a leading provider of private banking, private business banking and wealth management services.

In the quarter ended Sept. 30, 2008, the Index indicated the following:

-- Los Angeles area values fell 1.9% from the second quarter of 2008 and 4.2% from the third quarter of 2007. The average luxury home in Los Angeles is now $2.33 million.

-- San Diego area values dropped 2.1% from the second quarter of 2008 and 7.5% from the third quarter of 2007. The average luxury home in San Diego is now $1.98 million.

-- San Francisco Bay Area values declined 0.7% from the second quarter of 2008 and 3.0% from the third quarter of 2007. The average luxury home in San Francisco is now $2.99 million.

"Values of luxury homes declined in the third quarter in response to turmoil in the financial markets and the underlying weakness in the broader housing market," said Katherine August-deWilde, President and Chief Operating Officer of First Republic Bank. "Further price declines are likely due to the overall slowdown in the U.S. and global economies." read more

County Lottery To Benefit First Time Home Buyers

While thousands of people are struggling to hang onto their homes in the face of massive foreclosures in this tough economy, there are thousands more hoping to purchase their first home. Some lucky first-time would-be home buyers have hit the lottery of a lifetime. It's not the Florida Lottery, but a lottery that will make the dream of owning their own home a reality.

Jim Goldrup just won the lottery, a housing lottery that guarantees him an $80 thousand low to no interest loan from Miami-Dade County's Office of Community and Economic Development. He is one of 45 people to win out more than 200 applicants.

As one of the leading states affected by the current mortgage crisis, nearly 383 thousand foreclosures were reported in Florida during the first half of 2008. As a result, some low and middle income residents of Miami-Dade County have had difficulties purchasing their first homes.

Tuesday morning, former Congresswoman Carrie Meek conducted the first drawing of the Housing Subsidy Lottery. read more

Many businesses feeling effects of economy

Davidson Mortgage Services has helped put many Davidson County families in new homes during the past 16 years.

But in the past year, owner Jim McMillan has had fewer families coming into his East Center Street office to apply for loans as the national and local economy took a dive. Some people wouldn't qualify for home loans anyway, and many of those who would are holding back on major purchases as they grapple with the uncertainty of their employment outlook and the economy.

Lee Davis, a fourth-generation owner at Davis Chevrolet, tells the same story. Like McMillan, he has seen a decline in customers at his dealership as people are holding onto their cars longer and putting off major purchases.

These stories are being played out all over Davidson County in banks, real estate offices and other places. The cyclical nature is dizzying at times. People are out of work, or afraid they might be soon, so they are buying less and qualifying for fewer major purchases. Businesses have fewer customers, so they are making less, purchasing less inventory and wondering if they might have to lay off employees to make it through this tough time. read more

K-State Economist's Research Suggests Low-Income, Vulnerable Homeowners Need Support After Purchase to Avoid Foreclosure or Having to Sell Their Home

Programs that help low-income and minority individuals and families purchase a home may be doing more harm than good, according to a Kansas State University economist.

When vulnerable homeowners don't get support after they purchase a home -- maybe one they really couldn't afford in the first place -- they're more likely to return to renting, said Tracy Turner, K-State assistant professor of economics. She and Marc Smith, professor of finance and director for the Institute of Housing Studies at DePaul University, are publishing their research in a forthcoming issue of the Journal of Regional Science.

"Moving vulnerable renters into homeownership without post-purchase support wastes tax dollars as well as creates great hardships for these new homeowners who lose their homes," Turner said.

Turner and Smith studied how populations with low homeownership rates also leave homeownership at high rates, either through foreclosure or selling the home. From 1970 to 2005, they found that low-income homeowners were consistently more likely to exit homeownership than higher income households. Hispanic households had higher exit rates before 1997 but not after.

They also found that a gap between blacks and whites exiting homeownership arose after 1997. Turner said this could be because policies in the 1990s that encouraged minority homeownership were not sustainable in the long term. read more

Geek Squad Announces In-Store and At-Home Gaming Set-Up and Customization Services

Parents, the day has come. Today tech support task force Geek Squad announced gaming set-up services and parental control customization for today's most popular consoles. Available at Geek Squad Precincts in Best Buy stores nationwide, Geek Squad's gaming services are an easy and affordable way to set-up a system's parental controls and user accounts, transfer data to a new system and connect to the Internet.

Even as they're serving the public, policing technology and protecting the world, many Geek Squad employees are also parents. They know firsthand that when it comes to video games, keeping Pac Man and the kids safe from Blinky, Pinky, Inky and Clyde is the least of a parent's concerns. With gaming systems now offering online features that encourage interaction among players, any parent would be ill-advised to send a child out into the virtual world without the proper parental control settings.

"I love to play video games with my sons, but I can't always be there to monitor what's coming into our home via the gaming console," said Geek Squad Deputy of Counter Intelligence Frances Gallup. "As a parent, I can attest to the necessity of parental controls on video game systems. And, as a Geek Squad Agent, I'm thrilled to offer an easy and affordable solution to the rigors of setting up and navigating a gaming system's parental controls." read more

Avoiding Foreclosure

You declare, in regard to a new industry program designed to help troubled homeowners avoid foreclosure, that “the half measures need to stop,” but then you continue to bang the drum for a plan to reform the bankruptcy code that we believe would help relatively few homeowners at the expense of everyone who would want to purchase a home moving forward.

Bankruptcy reform is even worse than a half measure. If even its most ardent supporters are to be believed, it could help 600,000 homeowners. Since two out of three bankruptcy plans fail, ultimately 200,000 could be helped. We contend that in return for those 200,000 helped, families looking to purchase a home in the future would face higher rates and fees and a larger down payment. We consider that a permanent tax on all future homeowners.

Hope Now, an industry-led initiative, reports that loan servicers have already helped more than 2.5 million homeowners avoid foreclosure since July 2007, with no cost to potential future homeowners. read more

CHANGE IS COMING: Experts say now is time to buy home

Industry analysts believe credit freeze will thaw

What can the housing industry expect now that the election is over and a new presidential administration is promising change?

Most industry experts believe change will come and that it will be in their favor. Home prices will stabilize, the credit crunch will loosen up and homeowners stuck in home loans with skyrocketing mortgages will get relief.

But it's going to take some time.

"I don't think the election is going to cause any quick changes," said Dennis Smith, president and chief executive officer of Home Builder's Research Inc., a local research firm for the housing industry.

"I think the consensus among those that aren't directly involved in the new housing industry is that there's going to be some magic formula or a switch is going to go on and everything's going to get better overnight."

Smith believes Las Vegas still hasn't seen the bottom of the housing market.

"Everything considered, I think the fourth quarter of this year is going to be the worst for us in Las Vegas."

He is optimistic, however, that home prices will stabilize by the beginning of next year.

"We'll come out of this," Smith said. "It's all hold tight and wait."

Smith said he doesn't predict any meaningful home appreciation until 2010 or even 2011.

That means, of course, that it's still a great time to buy a home.

"If you're looking for a better deal in 2009 than you can find today, I don't think that's going to happen," Smith said. read more

Experts: Now's a good time to buy home, start emergency fund

Traveling around the state, Clarion-Ledger reporters visited seven cities to examine how the economic slump was affecting Mississippi.

The package revealed Mississippi is not monolithic. There are communities like Pearl and Batesville seeing significant investment in economic development, while Gautier and West Point work to rebuild their economies following recent major setbacks - Hurricane Katrina and major employer closing.

But one of the interesting tools used with the Seven Cities in Seven Days project was a series of online chats with experts on a variety of subjects.

Look for tax credits

The housing market has been blamed as the cause for the faltering economy, and mortgage broker Bo Smith offered some advice for potential homebuyers. read more

MONEY PANEL: Better to sell home, then rent

QUESTION: Although this may not be a good time to sell a home, do you think it would be wise to buy another home now and then sell my current home at a later date?

ANSWER: Most homeowners prefer to know where they're going to live before selling their current home. However, with today's market conditions, buying a home before selling your current home is only a good idea if you can qualify to buy the new house and still handle the financial obligation of your current home while you are waiting for a more favorable time to sell.

In past years, it was less risky to buy a new home before selling the old one. Qualifying for financing was easy and many buyers were able to obtain financing to enable them to buy before selling their old home. read more

Watch out for tax fallout

Q: My 42-year-old son will move home next month. I am 65 and thinking of downsizing. I would like to place him on the deed when he moves in and after two years, sell my home. Because he is on the deed, will up to $500,000 be tax exempt? Is this possible and what are the drawbacks with this arrangement?

A: First, what do you mean that you will "place him on the deed?" Will you be selling the house to him, or just adding his name to the deed?

If the latter, there are potential tax complications. This would be treated as a gift. The tax basis of the person giving the gift (the giftor) becomes the tax basis of the person receiving the gift (giftee).

For example, let's say you bought the house many years ago for $100,000 and now it is worth $500,000. Your tax basis is $100,000, excluding any improvements that you may have made along the way. If you give half of the house to your son, his basis becomes $50,000. If you then immediately sell it for $500,000, your profit is $200,000 (half of $500,000 less your basis). read more

With USDA help, homes selling to first-time buyers

Bertha and Nimer Sarmiento sign the contract to purchase their first home on Thursday at Signature Homes of Central Florida in Auburndale.

With all the bad news nationwide about the housing market, it might come as a surprise to some people that homes are still being sold to first-time home buyers.

On Thursday, seven families signed paperwork to buy a new home for the first time. The buyers included a single mother of one child and a married couple with one child.

They were able to buy a home through a program administered by the U.S. Department of Agriculture. The USDA's Direct Loan Program provides individuals or families with direct financial assistance at an affordable interest rate.

The program, through the USDA's Housing and Community Facilities Programs, makes home loans available to those people who cannot qualify for a conventional loan. An interested home buyer fills out a pre-application and then is given information about the next step. The home buyer doesn't have to worry about a down payment, closing costs or private mortgage insurance (PMI). PMI is not required because the program is government funded and guaranteed. read more

Expanded loan limits for home buyers to end Dec. 31

Memo to Bay Area home buyers and owners: Your days to buy or refinance homes using big loans set at low interest rates are numbered.

As part of the economic stimulus bill that became law in February, loan limits on government-backed mortgages were increased in areas around the country where housing costs are high. That allowed more borrowers to benefit from the lower interest rates associated with loans backed by mortgage financing companies Fannie Mae and Freddie Mac, and the Federal Housing Administration. The change was designed to encourage more home-buying.

In the Bay Area, the maximum for these "agency jumbo" or "high-balance conforming" loans was temporarily increased to its current level of $729,750.

But the expanded loan limits expire Dec. 31. In Santa Clara County and across most of the Bay Area, the maximum for loans backed by Fannie and Freddie will drop to $625,500 as of Jan. 1, the federal government announced Friday. The FHA is expected to announce the same new limit for this area today. read more

For more buyers, home is their first, survey says

The tumultuous U.S. housing market hasn't been a turnoff for first-time buyers. Sales to first-time homebuyers are at the highest point in seven years, according to a new nationwide survey.

Homebuyers are taking longer to find a house than they did in previous years and are making larger down payments, the study by the National Association of Realtors found. And high energy costs are affecting their choice of home and commuting distance.

More than 40 percent of homes sold went to first-time buyers, the survey of 10,000 recent buyers found.

"That increase certainly makes sense, because first-time buyers are least encumbered with the sale of an existing home and can take advantage of the housing market," said Paul Bishop, a top researcher with the National Association of Realtors. The group held its annual meeting in Florida over the weekend. read more