2 States Ask Obama for Help With Vacant Home Crisis

Sixteen Ohio and Michigan lawmakers have written President Barack Obama a letter, urging federal intervention in handling the swell of abandoned, vacant homes that are battering home prices in the states.

The bipartisan group of lawmakers are concerned that the vacant homes will attract crime and further deteriorate neighborhoods.

In the letter to Obama, the lawmakers said their local governments need “federal support to demolish the decaying properties on a large scale,” the Associated Press reports.

In Ohio, state officials estimate that more than 70,000 empty homes are beyond repair and need to be torn down. Congresswoman Marcia L. Fudge from Ohio said in a statement that 15,000 of those vacant homes are located in Cleveland alone, and will cost an estimated $100 million to tear down.

“Home owners are depending on us to help stop the free fall of their property values,” Fudge said in a statement. “It’s time we develop and pass meaningful legislation that promotes the revitalization of our neighborhoods.”

Source: “Ohio, Mich. Lawmakers Write Obama on Vacant Homes,” Associated Press (Jan. 23, 2012)

Housing Inventory Down 22% Nationwide

Housing inventory slid to 1.89 million homes in December — down 6 percent from the previous month and 22.3 percent from the prior year, according to REALTOR.com.

Although supply ended 2011 at a four-year low, it remains to be seen whether it is a sign of a recovery — especially when considering there is a backlog of foreclosed homes that has yet to hit the market and some sellers are delaying sales until prices rise again.

In the 145 markets tracked by REALTOR.com, only Springfield, Ill., registered a year-over-year increase. Inventories plunged 49.7 percent in Miami, 49.1 percent in Phoenix, and 46.6 percent in Bakersfield, Calif.

Meanwhile, the national median price edged up 5 percent year-over-year; and asking prices climbed 32.5 in Miami, 21.7 percent in Naples, 21.5 percent in Fort Myers-Cape Coral, and 19.4 percent in Punta Gorda. However, asking prices were down 11 percent in Detroit, 10 percent in Chicago, 7.6 percent in Las Vegas, and 7 percent in Sacramento.

Source: "Housing Inventory Ends Year Down 22 Percent," Wall Street Journal (01/19/12)

Home Owner Satisfaction Remains High

Nearly three out of every four home owners say they are satisfied with their purchase – and the No. 1 reason for their satisfaction is pride they feel about owning a home, according to HomeGain’s 2012 National Home Ownership Survey.

In addition to pride, home owners also said they enjoy the freedom and control they have to make improvement and upgrades to their home.

Of the 1,400 home owners surveyed nationwide, satisfaction was found to be highest in the Northeast at 77 percent, followed by the Southeast at 73 percent, the West at 71 percent, and the Midwest at 68 percent.

“The HomeGain 2012 National Home Ownership satisfaction survey shows in spite of declines in the values of homes nationwide, satisfaction among home owners remains high at 72 percent,” said Louis Cammarosano, general manager of HomeGain.

Of the 28 percent of surveyed home owners who indicated they are dissatisfied, price depreciation was cited as the primary cause. Other reasons for their discontent include property taxes, homeowner association fees, and maintenance and repairs.

Noteworthy survey statistics:

Home owners who paid less than $75,000 for their home were the most satisfied at 77 percent.
Home owners who paid more than $800,000 were least satisfied at 69 percent.
Buyers who purchased a home via short sale had the highest satisfaction rate at 83 percent, followed by foreclosed home buyers at 79 percent.
New-home buyers had a satisfaction rate of 73 percent, and existing-home buyers had a satisfaction rate of 71 percent.
Home owners ages 55-65 were the most satisfied at 76 percent. Home owners between 18 and 25 had the lowest satisfaction rate at 45 percent.
By Erica Christoffer, REALTOR® Magazine