The Fine Living Group of Nashville

Thursday, April 29, 2010

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End of Home Buyer Tax Credit Unlikely to Deter Most Real Estate Buyers

The expiration of the 2010 Home Buyer Tax Credits on April 30 is unlikely to put off Americans looking to purchase homes who believe now is a good time to buy and are confident that home prices will rise according to a survey released by Prudential Real Estate and Relocation Services, Inc., a Prudential Financial, Inc. company. The survey of 1,000 Americans between the ages of 25-64 with at least $35,000 household income was conducted during April 15-20, 2010.

More than 90% of consumers believe that the home buyer tax credits have helped both first-time home buyers and the U.S. housing market overall. Among consumers actually shopping for homes, 65% believe that the end of the tax credits will have little or no effect on their interest in purchasing a home.

While consumers remain unsure about the direction of the housing market, the survey reveals that they are optimistic about real estate values with 46% of consumers expecting real estate prices in their area to increase over the next year. Just 12% expect prices will decline. Over the next five years, 79% expect real estate prices to increase, with 20% expecting prices to increase substantially.

“The survey underscores the key role the federal home buyer tax credits played in stimulating residential real estate market activity and the U.S. economy,” said James Mallozzi, chairman and chief executive officer of Prudential Real Estate and Relocation Services, Inc. “It also shows that most consumers believe the market has hit bottom and are more optimistic about the future.”

Survey respondents identified concerns about rising mortgage interest rates and unemployment as the most important factors affecting their decision to purchase a home, along with more stringent lending criteria and fewer mortgage-backed securities purchased by the Federal Reserve. The expiration of the tax credits placed lowest on their list of concerns. Among those who have recently purchased a home, 61% cited low mortgage interest rates as “very important” to their decisions – an amount greater than either the tax credit or even cheaper prices. The 66% expecting interest rates to rise underscores potential headwinds for the market.

“The tax credits clearly helped stimulate the market when consumer confidence was low and housing inventory was high,” said Earl Lee, president, Prudential Real Estate and Relocation Services, Inc. “While the tax credit expiration is a concern for many, the bigger issues now are the availability and cost of financing as well as if they will have a job.”

Despite the significant downturn in the real estate market, the survey underscores that the dream of homeownership and the perception that owning a home is a good investment remain intact. Among current renters, 75% still believe owning their home is a better long-term choice for their needs than renting.

The majority of consumers also believe that homeownership is a better investment than individual stocks or bonds (75%), mutual funds (72%), or savings accounts (74%).

“The real estate market is precariously balanced. Consumers are clearly motivated to take advantage of the opportunities the current low interest rates and prices afford,” Lee notes. “While the market is picking up in terms of sales and confidence, and the majority still believe that owning a home is a good investment, the outlook for the market remains highly dependent upon the direction of the economy overall.”

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Wednesday, April 28, 2010

Restaurant Wednesday

tayst Restaurant and Wine Bar
As Nashville's first and only certified green restaurant tayst provides primarily local, sustainable food served in a playful manner. This little neighborhood restaurant with the fancy food lives the motto, "Eat local, drink global."

location
2100 21st Avenue South
Nashville

taystrestaurant.com

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Tuesday, April 27, 2010

Nashville Mayor adds 3 aides to make city healthier, greener

Mayor Karl Dean has hired three young aides focused on making Nashville a healthier, greener and even more volunteering city.
One is an attorney, a French horn player and, like Dean, a Boston Red Sox fan. Another is a one-time "Nashville's Most Beautiful People" recipient and has led a radio station's outdoors program since 1997. The third is a veteran city planner who was already in charge of Dean's efforts to add bike lanes and sidewalks around Nashville.

In the past month, Dean has named a director of healthy living, Toks Omishakin; a director of the new Mayor's Office of Environment and Sustainability, Chris Bowles; and a chief service officer, Laurel Creech.

Each of them will be paid with federal or private grant money, not city tax dollars. But at a time when Dean has asked Metro departments to prepare for 7.5 percent budget cuts and potential job losses, he'll have to work to explain that his office isn't eating caviar while others chew chopped liver.

"It's just a timing issue," said Councilman Erik Cole, an ally of the mayor. "It's a harder job to communicate that to the council and constituents. It's a difficult task for the mayor to talk about these initiatives when we're in this budget climate."

Dean, who will release his budget recommendations Thursday, said he's accustomed to explaining which pools of money are eligible to pay for which jobs, services and projects. He said his administration rightly applied for grant funds that will allow the city to do more than its own tax revenues can pay for.

"If we didn't do this, we'd be leaving money on the table, which I don't think is my job to do," he said Thursday.

Funds fight obesity
The largest pot of money comes from the U.S. Health and Human Services Department, which awarded Nashville $7.5 million to support public health efforts to reduce chronic disease and childhood obesity. While the Metro Health Department will administer the two-year grant, Omishakin will coordinate the work of other departments, Dean said.
The work will include creating safer routes for children to walk to school, putting fresh fruits and vegetables in neighborhood markets and increasing awareness about the need for motorists and cyclists to share the road.
Omishakin, 33, has worked as a planner for Metro for about eight years. For more than a year he has been Dean's bicycle and pedestrian coordinator, a job he'll continue to hold.

In an e-mail interview — Dean's office declined to make the aides available by phone or in person — Omishakin said he was looking forward to the challenge of "creating a paradigm shift in a city this large."

"We want Nashvillians to take steps towards walking and riding buses and bikes," he said. "It would be great to see families and neighborhoods throughout the city more committed to a healthier lifestyle. This paradigm shift starts with informing and educating the community at large about healthier options, but we have to continue to build the infrastructure to support this lifestyle, as well."

Metro also is getting a two-year, $200,000 grant from the Rockefeller Foundation to develop and implement a plan to increase volunteerism. Nashville is one of 10 "cities of service" that won the money under a program initiated last year by New York City Mayor Michael Bloomberg.

As chief service officer, Creech, 35, is in charge of the volunteerism plan, which will focus on education, the environment and disaster preparedness. A student of Irish poetry and African-American studies in college, she created and ran Lightning 100's Team Green outdoor adventure program.

"She's a real healthy outdoors person who knows a lot of people who are involved in a variety of efforts to make Nashville a better place to live," Dean said.

Volunteers wanted
Creech also has advised the mayor on environmental issues and increasing bicycle and pedestrian activity.

"My goal is to create easier access and offer more selections for our community to volunteer in an area(s) that they are passionate about," she wrote. "... Having passion about the environment that surrounds Nashville and a greater sense of working together will only further improve our community's lifestyles both individually and as a whole."
Bowles, 29, was an environmental attorney at Bass Berry & Sims for about two years after graduating from Vanderbilt University Law School in 2008. He co-founded and edited an environmental law and policy review at Vanderbilt.
He'll be responsible for implementing the recommendations made last year by Dean's Green Ribbon Committee, as well as implementing a $6 million U.S. Department of Energy grant if Nashville wins it. Bowles' salary will be paid out of grant funds the city already has received.

Bowles, who worked as a freelance musician in Wisconsin for two years after college, said he was grateful for an opportunity to "make a difference for Nashville in an area that I am passionate about." He said he wants to create a culture in which thinking green becomes second nature.

"I believe that Nashville will have succeeded in its mission to become a truly green city when we also regularly ask ourselves whether the choices we make as individuals, family members, citizens and professionals will help ensure that our resources will also be available to future generations and whether those choices will enhance the quality of life in Nashville," he wrote
Dean said it was important to have someone on his staff coordinating the city's environmental work.

"You've got to keep moving forward, and that's why you need somebody in this office leading that effort. The mayor's office, the strength we bring to something is, when we want to do it, it's pretty clear that's a priority of the government."

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Monday, April 26, 2010

Only 4 More Days!

Only 4 days remain for the $8,000 Tax Credit! You must have an executed contract by April 30th to qualify! Contact Ashley, David or T.J. now!

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Friday, April 23, 2010

Existing-Home Sales Rise on Home Buyer Tax Credit and Favorable Market Conditions

Buyers responding to the home buyer tax credit and favorable affordability conditions boosted existing-home sales in March 2010, marking the beginning of an expected spring surge, according to the National Association of Realtors.

Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, rose 6.8% to a seasonally adjusted annual rate of 5.35 million units in March from 5.01 million in February, and are 16.1% above the 4.61 million-unit level in March 2009.

Lawrence Yun, NAR chief economist, said it is encouraging to see a broad home sales recovery in nearly every part of the country, with two important underlying trends. “Sales have been above year-ago levels for nine straight months, and inventory has trended down from year-ago levels for 20 months running,” he said. “The home buyer tax credit has been a resounding success as these underlying trends point to a broad stabilization in home prices. This is preserving perhaps $1 trillion in largely middle class housing wealth that may have been wiped out without the housing stimulus measure.”

Total housing inventory at the end of March rose 1.5% to 3.58 million existing homes available for sale, which represents an 8.0-month supply at the current sales pace, down from an 8.5-month supply in February. Raw unsold inventory is 1.8% below a year ago, and is 21.7% below the record of 4.58 million in July 2008.

“Foreclosures have been feeding into the inventory pipeline at a fairly steady pace and are being absorbed manageably,” Yun said. “In fact, foreclosures are selling quickly, especially in the lower price ranges that are attractive to first-time home buyers.”

A parallel NAR practitioner survey shows first-time buyers purchased 44% of homes in March, up from 42% in February. Investors accounted for 19% of transactions in March, unchanged from February; the remaining sales were to repeat buyers. All-cash sales remain elevated at 27% in March, the same as in February.

The national median existing-home price for all housing types was $170,700 in March, up 0.4% from March 2009. Distressed homes, typically sold at a 15% discount, accounted for 35% of sales last month – unchanged from February.

“With home values stabilizing, a revival in home buying confidence will likely help the housing market get back on its feet even as the tax credit impact disappears,” Yun said.

NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz., said buying conditions are in near-perfect alignment. “Even with tougher loan standards, historically low mortgage interest rates with affordable prices and a sense that the market is turning have created optimal conditions in much of the country,” she said.

“With the fast approaching April 30 deadline to get a contract in place for the tax credit, Realtors are working harder than ever to negotiate transactions, arrange services and complete paperwork,” Golder said. “Because many repeat buyers need to sell their current home first, many will be purchasing later without the tax credit but now have the benefit of a more buoyant housing market.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage dipped to 4.97% in March from 4.99% in February; the rate was 5.00% in March 2009.

Single-family home sales rose 7.3% to a seasonally adjusted annual rate of 4.68 million in March from a level of 4.36 million in February, and are 13.3% above the 4.13 million level a year ago. The median existing single-family home price was $170,700 in March, up 0.6% from March 2009.

Single-family median prices rose in 14 out of 20 metropolitan statistical areas reported in March in comparison with a year earlier. Five metro areas experienced double-digit increases, including San Diego, St. Louis and Boston.

Existing condominium and co-op sales increased 3.1% to a seasonally adjusted annual rate of 670,000 in March from 650,000 in February, and are 39.3% higher than the 481,000-unit level in March 2009. The median existing condo price was $170,600 in March, which is 0.7% below a year ago.

Northeast
Regionally, existing-home sales in the Northeast increased 6.0% to an annual level of 890,000 in March and are 25.4% higher than a year ago. The median price in the Northeast was $249,800, up 8.9% from March 2009.

Midwest
Existing-home sales in the Midwest rose 7.2% in March to a pace of 1.19 million and are 15.5% above March 2009. The median price in the Midwest was $139,300, up 0.2% from a year ago.

South
In the South, existing-home sales increased 7.1% to an annual level of 1.97 million in March and are 13.9% higher than a year ago. The median price in the South was $154,800, up 5.2% from March 2009.

West
Existing-home sales in the West rose 6.6% to an annual rate of 1.30 million in March and are 14.0% above March 2009. The median price in the West was $209,400, down 7.9% from a year ago.

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Thursday, April 22, 2010

Existing-Home Sales Rise on Home Buyer Tax Credit and Favorable Market Conditions

Buyers responding to the homebuyer tax credit and favorable affordability conditions boosted existing-home sales in March, marking the beginning of an expected spring surge, according to the National Association of Realtors®.

Existing-home sales1, which are completed transactions that include single-family, townhomes, condominiums and co-ops, rose 6.8 percent to a seasonally adjusted annual rate of 5.35 million units in March from 5.01 million in February, and are 16.1 percent above the 4.61 million-unit level in March 2009.

Lawrence Yun, NAR chief economist, said it is encouraging to see a broad home sales recovery in nearly every part of the country, with two important underlying trends. “Sales have been above year-ago levels for nine straight months, and inventory has trended down from year-ago levels for 20 months running,” he said. “The home buyer tax credit has been a resounding success as these underlying trends point to a broad stabilization in home prices. This is preserving perhaps $1 trillion in largely middle class housing wealth that may have been wiped out without the housing stimulus measure.”

Total housing inventory at the end of March rose 1.5 percent to 3.58 million existing homes available for sale, which represents an 8.0-month supply2 at the current sales pace, down from an 8.5-month supply in February. Raw unsold inventory is 1.8 percent below a year ago, and is 21.7 percent below the record of 4.58 million in July 2008.

“Foreclosures have been feeding into the inventory pipeline at a fairly steady pace and are being absorbed manageably,” Yun said. “In fact, foreclosures are selling quickly, especially in the lower price ranges that are attractive to first-time home buyers.”

A parallel NAR practitioner survey3 shows first-time buyers purchased 44 percent of homes in March, up from 42 percent in February. Investors accounted for 19 percent of transactions in March, unchanged from February; the remaining sales were to repeat buyers. All-cash sales remain elevated at 27 percent in March, the same as in February.

The national median existing-home price4 for all housing types was $170,700 in March, up 0.4 percent from March 2009. Distressed homes, typically sold at a 15 percent discount, accounted for 35 percent of sales last month – unchanged from February.

“With home values stabilizing, a revival in home buying confidence will likely help the housing market get back on its feet even as the tax credit impact disappears,” Yun said.

NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz., said buying conditions are in near-perfect alignment. “Even with tougher loan standards, historically low mortgage interest rates with affordable prices and a sense that the market is turning have created optimal conditions in much of the country,” she said.

“With the fast approaching April 30 deadline to get a contract in place for the tax credit, Realtors® are working harder than ever to negotiate transactions, arrange services and complete paperwork,” Golder said. “Because many repeat buyers need to sell their current home first, many will be purchasing later without the tax credit but now have the benefit of a more buoyant housing market.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage dipped to 4.97 percent in March from 4.99 percent in February; the rate was 5.00 percent in March 2009.

Single-family home sales rose 7.3 percent to a seasonally adjusted annual rate of 4.68 million in March from a level of 4.36 million in February, and are 13.3 percent above the 4.13 million level a year ago. The median existing single-family home price was $170,700 in March, up 0.6 percent from March 2009.

Single-family median prices rose in 14 out of 20 metropolitan statistical areas reported in March in comparison with a year earlier. Five metro areas experienced double-digit increases, including San Diego, St. Louis and Boston.

Existing condominium and co-op sales increased 3.1 percent to a seasonally adjusted annual rate of 670,000 in March from 650,000 in February, and are 39.3 percent higher than the 481,000-unit level in March 2009. The median existing condo price5 was $170,600 in March, which is 0.7 percent below a year ago.

Regionally, existing-home sales in the Northeast increased 6.0 percent to an annual level of 890,000 in March and are 25.4 percent higher than a year ago. The median price in the Northeast was $249,800, up 8.9 percent from March 2009.

Existing-home sales in the Midwest rose 7.2 percent in March to a pace of 1.19 million and are 15.5 percent above March 2009. The median price in the Midwest was $139,300, up 0.2 percent from a year ago.

In the South, existing-home sales increased 7.1 percent to an annual level of 1.97 million in March and are 13.9 percent higher than a year ago. The median price in the South was $154,800, up 5.2 percent from March 2009.

Existing-home sales in the West rose 6.6 percent to an annual rate of 1.30 million in March and are 14.0 percent above March 2009. The median price in the West was $209,400, down 7.9 percent from a year ago.

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