Portland Oregon Property Appraisers

WASHINGTON (AP) — Home prices in major U.S. cities have risen for the first time in eight months, boosted by an annual flurry of spring buyers.

Prices rose in 13 of the 20 cities tracked by the Standard & Poor’s/Case-Shiller home-price index, according to the April report released Tuesday. Washington, D.C., saw the biggest price increases, followed by San Francisco, Atlanta and Seattle.

The index, which covers metro areas that include about 50 percent of U.S. households, rose 0.7 percent. It marked the first increase since July. The index measures sales of select homes in those cities compared with prices in January 2000 and provides a three-month average price. The April data is the latest available.

Last summer prices rose nearly 4 percent before falling more than 7 percent to new record lows this winter. Home prices in big metro areas sank in March to their lowest since 2002. Since the bubble burst in 2006, prices have fallen more than they did during the Great Depression.

The positive data released Tuesday came with a caveat: It was not adjusted for seasonal factors. When looking at seasonally adjusted numbers, prices actually fell.

David M. Blitzer, chairman of Standard & Poor’s index committee, cautioned that while the price index increase was a “welcome shift from recent months,” much of the improvement was likely because of the beginning of the traditionally busy spring and summer home-buying seasons.

“It is much too early to tell if this is a turning point or simply due to some warmer weather,” he said.

Despite the gains in other cities, six metro areas are at their lowest levels in nearly four years. Those markets are: Charlotte, Chicago, Detroit, Las Vegas, Miami and Tampa.

Analysts said the report hardly signaled an end to the falling home prices. They noted that homeowners are mostly unwilling to sell given the widespread declines in home values. And nearly 2 million foreclosures could hit the market over the next two years.

“It’s hard to sell when buyers have the leverage and foreclosures continue to create a gap between distressed sale prices and non-distressed sale prices,” said Jonathan Basile, director of economics at Credit Suisse Securities.

Homes in foreclosure sell at a 20 percent discount on average, which can hurt prices in neighborhoods. Many foreclosures have been delayed while federal regulators, state attorneys general and banks review how those foreclosures were carried out over the past two years.

Karin Kelsey
Certified Residential Appraiser-State of Oregon
Office phone 503-636-1163
Cell : 928-300-7828
3 Monroe Pkwy. Ste. P, #418
Lake Oswego, OR 97035
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July 6th 2011

Nearly 4.1 million loans nationwide are 90 days delinquent or in foreclosure, according to Lender Processing Services’ May Mortgage Monitor report, National Mortgage News reported June 29.

According to the report, foreclosure sales totaled 78,676 at the end of May. The combination of serious delinquencies and foreclosures outnumber foreclosure sales by 50:1.

LPS said the East Coast has experienced the worst drop in the rate of foreclosure sales, led by Washington, D.C., which declined 96 percent, and followed by Maryland (80 percent), New York (79 percent) and New Jersey (75 percent), National Mortgage News reported.

“There are still significantly fewer foreclosure sales than there were before moratoria were put into place, and foreclosure sales are declining,” officials at the Jacksonville-based mortgage processing and technology firm said, according to National Mortgage News.

The overall delinquency rate for the nation is 7.96 percent, a month-over-month decline of only 0.1 percent and a yearly drop of 18.3 percent. However, LPS said delinquencies are still almost twice as high as historical norms and the rate of foreclosures is eight times higher, National Mortgage News reported.

Courtesy Karin Kelsey Member of the Appraisal Institute

Karin Kelsey
Certified Residential Appraiser-State of Oregon
Office phone 503-636-1163
Cell : 928-300-7828
3 Monroe Pkwy. Ste. P, #418
Lake Oswego, OR 97035
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Fixed mortgage rates held steady amid mixed economic reports and some signs of improvement in the housing market in Freddie Mac’s Primary Mortgage Market Survey released June 30. The five-year adjustable-rate mortgage hit a record low at 3.22 percent, below the previous low of 3.25 percent set Nov. 11, 2010.

A 30-year fixed-rate mortgage averaged 4.51 percent with an average 0.7 point for the week ending June 30, up from last week when it averaged 4.50 percent. Last year at this time, the 30-year fixed-rate mortgage averaged 4.58 percent.

A 15-year fixed-rate mortgage this week averaged 3.69 percent with an average 0.7 point, the same from the previous week when it averaged 3.69 percent. A year ago, the 15-year fixed-rate mortgage averaged 4.04 percent.

“First quarter economic growth was revised up in the final estimate, but growth in consumer spending stagnated in May while April’s figure was revised downward; consumer expenditures account for roughly two-thirds of the nation’s gross domestic product,” Frank Nothaft, Freddie Mac vice president and chief economist, said in a news release.

“Meanwhile, there were some signs of improvement in the housing market,” he said. “In April, the S&P/Case-Shiller 20-city composite home price index rose 0.7 percent, representing the first monthly increase since July 2010. However, much of the improvement reflected the seasonal increase in homebuying over the spring-summer period.  Pending existing home sales rebounded in May, exhibiting the largest monthly increase since November 2010.”

Courtesy Karin Kelsey Member of the Appraisal Institute

Karin Kelsey
Certified Residential Appraiser-State of Oregon
Office phone 503-636-1163
Cell : 928-300-7828
3 Monroe Pkwy. Ste. P, #418
Lake Oswego, OR 97035
E-Mail Me

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There were more reports of debt elimination schemes in the first three months of 2011 than the entire calendar year of 2010, according to the Financial Crimes Enforcement Network’s first quarter report. The majority of filers submitted reports on these frauds within 90 days of the activity.

According to the report, FinCEN conducted a study concentrating specifically on filings of suspicious activity occurring within 90 or fewer days of the filing. Of the 25,485 reports filed in the first quarter, 1,562 of them were filed within 90 days or less. FinCEN found more reports filed within 90 days of the activity used “other” to classify the suspicious activity. Of the 90 days or less reports, 22 percent were classified as “other,” while only 3 percent of the remaining reports used “other” as a classification.

Going deeper into their study, FinCEN analyzed the details of the “other” classifications in the 90 days or fewer reports. In the narratives describing the suspicious activities in those reports, 80 percent contained the words “debt elimination.” Upon closer inspection, FinCEN reported finding the words “debt elimination” on reports classified as “other” was much higher in the first quarter of 2011 than it was in all of 2010.

In reports mentioning debt elimination, there were descriptions of bogus documents and payment methods that customers and third parties submitted to lenders to have their loan obligations eliminated. Some examples of those documents are “Notice of Tender for Setoff,” “money order receipt” and “bonded promissory note.” In a few cases, these activities were described as “foreclosure rescue scams.”

As a result of this review of debt elimination filings, FinCEN, joined together with the U.S. Trustee’s Office, Federal Deposit Insurance Corporation, Federal Trade Commission and National Association of Attorneys General to investigate these and future claims of suspicious activities.

Overall, FinCEN received 25,485 reports of suspicious activity on mortgage loan fraud in the first quarter — an increase of 31 percent from the previous year.

Most of the reports were for loans issued more than two years ago, according to the report. Thirty-seven percent of the SARs were on loans issued three to four years ago, while 25 percent were for loans issued four to five years ago. For both 2010 and 2011, the majority of the reported activities occurred between January 2006 and December 2008.

California and Florida were the states ranking the highest in number of mortgage loan fraud reports. The City of Los Angeles ranked the highest in filings among the 50 most populous metropolitan areas.

FinCEN also reported on suspected fraud activity targeting government-sponsored mortgage relief programs. During the first quarter, filers reported an average of 230 suspicious activities per month involving $73 million in loans. The most commonly reported incidents focused on discrepancies in customer information, such as income, employment, occupancy or social security number. In 2010, this type of fraud averaged 179 reports per month.

Courtesy Karin Kelsey Member of the Appraisal Institute

Karin Kelsey
Certified Residential Appraiser-State of Oregon
Office phone 503-636-1163
Cell : 928-300-7828
3 Monroe Pkwy. Ste. P, #418
Lake Oswego, OR 97035
E-Mail Me

Website

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Courtesy Karin Kelsey Member of the Appraisal Institute

Karin Kelsey
Certified Residential Appraiser-State of Oregon
Office phone 503-636-1163
Cell : 928-300-7828
3 Monroe Pkwy. Ste. P, #418
Lake Oswego, OR 97035
E-Mail Me

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The Appraisal Institute is a global membership association of professional real estate appraisers, with more than 24,000 members and 91 chapters throughout the world. Its mission is to advance professionalism and ethics, global standards, methodologies, and practices through the professional development of property economics worldwide. Organized in 1932, the Appraisal Institute advocates equal opportunity and nondiscrimination in the appraisal profession and conducts its activities in accordance with applicable federal, state and local laws. Members of the Appraisal Institute benefit from an array of professional education and advocacy programs, and may hold the prestigious MAI, SRPA and SRA designations. For more information regarding the Appraisal Institute, please visitwww.appraisalinstitute.org.

Courtesy Karin Kelsey Member of the Appraisal Institute

Karin Kelsey
Certified Residential Appraiser-State of Oregon
Office phone 503-636-1163
Cell : 928-300-7828
3 Monroe Pkwy. Ste. P, #418
Lake Oswego, OR 97035
E-Mail Me

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Nation’s Largest Professional Association of Real Estate Appraisers
Teaches Intricacies of Valuing Sustainable Buildings

CHICAGO (Jan. 24, 2011) – The Appraisal Institute today launched its Valuation of Sustainable Buildings Professional Development Program, educating appraisers on the intricacies of valuing high-performance residential and commercial buildings. The Appraisal Institute is the nation’s largest professional association of real estate appraisers.

“There is a tremendous need for this type of education within the real estate sector,” said Appraisal Institute President Joseph C. Magdziarz, MAI, SRA. “High-performance buildings represent a rapidly growing area of the real estate market, and reliable valuations are critical both to banks’ risk management and to developers’ sound development practices. The Appraisal Institute is proud to continue its leading role in educating appraisers on such an important topic.”

Home builders and others have complained that appraisers often don’t properly take into account “green” features when providing valuations. Building on existing Appraisal Institute education, the Valuation of Sustainable Buildings Professional Development Program is intended to arm professional appraisers with the most advanced guidance, case studies, methods and techniques on valuing high-performance buildings, positioning them as solution providers for the real estate sector.

The Appraisal Institute’s program consists of three educational courses: the first, “Introduction to Green Buildings: Principles & Concepts,” is being taught for the first time today in Chicago. The second, “Case Studies in Appraising Residential Green Buildings,” will be taught initially Tuesday in Chicago. A third, “Case Studies in Appraising Commercial Green Buildings,” will debut later this year. All three courses, which have been approved for continuing education by the U.S. Green Building Council, will be taught multiple times in numerous locations throughout the country.

“By advancing this knowledge base, the Appraisal Institute is further establishing its role as a leader in the real estate and appraisal profession,” Magdziarz said. “When we see a need, we address it.”

He acknowledged that misconceptions about green valuation exist among many non-appraisers, including a failure to realize that cost does not always equal value. He noted that appraisers need to have all information from underwriters, builders, real estate agents and home inspectors related to energy efficient features in order to recognize them and to make appropriate, market-based adjustments. Appraisers frequently ask for ratings information, blueprints and specifications of properties’ conservation features and are not provided the information either because those involved in their construction, sale or financing mistakenly believe they are not applicable to the appraisal process or because the data are not generally available.

“As analysts of the real estate market, appraisers will look at the actions of buyers and sellers of real estate by analyzing data, conducting interviews and applying applicable approaches to value,” Magdziarz said. “A critical issue to the advancement of high-performance buildings is market recognition of the actual or perceived benefits of a green building. Do market participants view high-performance features as an enhancement to the market value of the property or as an over-enhancement? This is a critical question that will likely be unique to the particular property and local real estate market.”

The Appraisal Institute long has been in the forefront of green valuation. In addition to the new Valuation of Sustainable Buildings Professional Development Program:

• The Appraisal Institute was among the sponsors of the Vancouver Valuation Accord (http://www.vancouveraccord.org/), an agreement to address the interrelationship of sustainability and valuation that was signed March 2007 in Vancouver, British Columbia, Canada. Other sponsors included the province of British Columbia and the Globe Foundation.
• The Appraisal Institute contributed to the Green MLS Tool Kit (www.GreentheMLS.org), issued in April 2010. The tool kit was created to help Realtors® add a green initiative to their local multiple listing service (MLS). The tool kit provides guidance on enhancing data in the MLS, empowering appraisers to make well-supported comparisons, analyses and adjustments.
• Published by the Appraisal Institute in June 2010, “An Introduction to Green Homes” (http://www.appraisalinstitute.org/store/p-216-an-introduction-to-green-homes.aspx) by Alan Simmons, SRPA, LEED AP, provides the appraiser with an overview of programs, organizations, and products that relate to environmentally responsible building and remodeling.
• Appraisal Institute leaders last year spoke on green valuation topics at events sponsored by organizations such as the United Nations Economic Commission for Europe and the U.S. Green Building Council.
• The Appraisal Institute’s quarterly publications, The Appraisal Journal and Valuation magazine, often include cutting-edge articles on green valuation.

To learn more about the Appraisal Institute’s Valuation of Sustainable Buildings Professional Development Program, go to: http://www.appraisalinstitute.org/education/green_FAQs.aspx.

Article Courtesy of

Karin Kelsey
Certified Residential Appraiser-State of Oregon
Office phone 503-636-1163
Cell : 928-300-7828
3 Monroe Pkwy. Ste. P, #418
Lake Oswego, OR 97035
E-Mail Me

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