The National Flood Insurance Program is set to expire soon and must be reauthorized by Congress. Call, write, email your Congressman and insist that this essential program not fall prey to the political wrangling. The recent threat to FEMA funding makes me more than a little nervous that we'll be without NFIP.
If you aren't already doing so, have a contigency plan to deal with at least a pause. Recall that we had a bump earlier this year regarding Missouri River coverage. It was fixed retroacitvely.
Tuesday, September 27, 2011
Saturday, September 24, 2011
Home Values still sluggish gains
For the fourth straight month, home values nationally inched up, this time by 0.8%. The twelve month downward trend appears to have been reversed, based on new home purchases and refinances in Spring and Summer. That's good news as we are still 18% below the April 2007 peak, and right now values are at about where they were in March 2004.
A survey of 111 economists and real estate sources predicts a 1.1% average home value gain in each of the next 3 years - not only an average but a general consensus for slow recovery. Since historically, regional downturns have taken 3-4 years to ascend to prior levels, we are indeed making history in this market.
FHFA published its second quarter report of 308 real estate markets. Of the top 20 performers in Q2, most were smaller metropolitan areas. However, Pittsburgh, Buffalo, Honolulu and San Antonio made the top 20 list. Among the bottom 20 were (still) 13 in AZ, NV and Florida.
Our financial policy makers must find this report very sobering as refinances won't work if value isn't there to support a new loan. Unless, of course, the banks are allowed to split the asset into a secured portion (supported by current home value) and an unsecured asset represented by the amount owed that is in excess of the home value.
Stay tuned....
A survey of 111 economists and real estate sources predicts a 1.1% average home value gain in each of the next 3 years - not only an average but a general consensus for slow recovery. Since historically, regional downturns have taken 3-4 years to ascend to prior levels, we are indeed making history in this market.
FHFA published its second quarter report of 308 real estate markets. Of the top 20 performers in Q2, most were smaller metropolitan areas. However, Pittsburgh, Buffalo, Honolulu and San Antonio made the top 20 list. Among the bottom 20 were (still) 13 in AZ, NV and Florida.
Our financial policy makers must find this report very sobering as refinances won't work if value isn't there to support a new loan. Unless, of course, the banks are allowed to split the asset into a secured portion (supported by current home value) and an unsecured asset represented by the amount owed that is in excess of the home value.
Stay tuned....
Monday, September 5, 2011
A Survey of Risk Types
We deal with risk issues all of the time, even if we don't think of them with that label. Here are some worth noting:
- Insurable Risks: property, liability, flood, title
- Property Management: taking care of a vacant home in a northern climate,
- Computers: data security, etc
- Political Risk: relocating to a country with some political instability
- Economic/market/interest rate: outside forces affect your customers, capital and cash
- Loss on Sale: for both the homeowner and the employer post-buyout
- Maritime Risk: the inherent risk of sailing the Seven Seas and briny Oceans
- Credit Risk: Can your invoices be paid in timely fashion?
- Regulatory: especially in the home lending arena, but also taxation issues abound
- Betty Grable Risk: legs, throwing arms, etc (OK, probably not a relocation issue per se)
- Legal: are your contracts, SLAs, addenda documented, tracked and enforcable?
Each requires attention, at the outset and ongoing. Quantify them where you can and apply at least an ounce of prevention and planning to minimize or avoid.
Which have I missed?
- Insurable Risks: property, liability, flood, title
- Property Management: taking care of a vacant home in a northern climate,
- Computers: data security, etc
- Political Risk: relocating to a country with some political instability
- Economic/market/interest rate: outside forces affect your customers, capital and cash
- Loss on Sale: for both the homeowner and the employer post-buyout
- Maritime Risk: the inherent risk of sailing the Seven Seas and briny Oceans
- Credit Risk: Can your invoices be paid in timely fashion?
- Regulatory: especially in the home lending arena, but also taxation issues abound
- Betty Grable Risk: legs, throwing arms, etc (OK, probably not a relocation issue per se)
- Legal: are your contracts, SLAs, addenda documented, tracked and enforcable?
Each requires attention, at the outset and ongoing. Quantify them where you can and apply at least an ounce of prevention and planning to minimize or avoid.
Which have I missed?
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