Mobile Realtyreality

Renowned city planner Andres Duany stood Thursday in front of a ballroom filled with some of the most powerful people in Mobile and told them that 70 to 80 percent of the city’s development is not only bad, it’s a threat to the area’s economic viability.

“Twenty or 30 years from now, Mobile won’t have a future,” he said, unless the city drastically rethinks its growth patterns.

Duany’s speech, peppered with humor and hard truths, was the keynote address at the annual meeting of the Downtown Mobile Alliance.

The group sought out Duany in the hopes of sparking renewed interest in New Urbanism-type city planning, which seeks to boost land values while creating walkable, eye-catching communities that meld retail space, offices and dwellings.

Duany helped pioneer New Urbanism in the 1980s. 

Read the full story from the Press-Register here> 

Mobile, Alabama has turned itself into a great resort town of the South. Just a six-hour drive from Chattanooga, it is a great place to get away for a long weekend with a significant other, family or group of friends. The town offers something for everyone: top rated spas, history-filled museums, excellent restaurants, gorgeous gardens, an amazing interactive exploreum and a host of other attractions that people of all ages will love. On top of that, Mobile has managed to maintain the small city Southern charm that is becoming harder and harder to find.

While there, I stayed at the Battle House Hotel, a four-star hotel that provides comfortable, spacious rooms complete with modern amenities in a beautiful, historic building that was completely renovated in May 2007. Truthfully, I could have spent an entire weekend inside the hotel and felt like the vacation was complete. Between their state-of-the-art gym, the rooftop pool, Joe Cain Coffeehouse, and the Trellis Room Restaurant, the hotel has everything a vacationer could want. After spending an entire afternoon in the spa, I plan on going back with girlfriends to spend at least one full day enjoying all of their services.


For more of the article by Kate Wilson see The Chattanoogan.com>

According to a new report, the oil spill will negatively affect Gulf Coast real estate values by $3 billion over the next five years. The report by CoreLogic of California says the average loss per home in the Mobile coastal areas will be $45,000.

According to the report, the hardest hit area will be Gulfport, Miss. with an average loss of $56,000 per beachfront home. The loss in Pensacola is quoted at $40,000 per home.

CoreLogic is headquartered in Santa Ana, Cal. and claims to have “the most comprehensive business database in the U.S.”

Locally, Dr. Don Epley scoffs at such out-of-state “experts.” Epley heads the Center for Real Estate Studies at the University of South Alabama.

“It’s too early. We don’t yet have the data,” says Epley. In a recent presentation, Dr. Epley said that it appears from limited preliminary data that one category and location of real estate may be down by about 19 percednt while another category/location may actually be up by approximately 20 percent. Epley declined to identify the categories and locations, promising a full report as hard data is collected and analyzed.
Bob Shallow of ReMax in Gulf Shores says he has had the best June and July sales in three years. “In the first several weeks after the spill, it was dead. But now things are moving,” he said.

 To read more of the story, see The Lagniappe>

According to a report in the local news late last week, Mobile ranks 46th out of 363 cities for job growth. IHS Global Insight expects an annual jog growth of 2.3 percent from 2011 through 2015. That would equate to about a 15 percent employment increase through the end of 2015.

Here's a comparison to some other nearby cities:

16. Hunstville - 2.7 Percent Growth
46. Mobile - 2.3
162. Birmingham - 1.69
175. Pensacola - 1.66
177. Montgomery - 1.65
179. Pascagoula - 1.64
223. Gulfport-Biloxi - 1.45 

Mobile County eked out a small gain in personal income in 2009, a good showing in a year when barely more than a third of metro areas showed increases.

Personal income rose 0.3 percent in Mobile in 2009 to $12.5 billion, according to figures released Monday by the Bureau of Labor Statistics.

Growth was much lower than the 4.7 percent Mobile recorded in 2008, but it was better than the 2.8 percent decline for all metro areas in 2009. It also outstripped the 1 percent decline for all of Alabama and the 1.7 percent decline for the entire nation.

On a per-capita basis, personal income in Mobile County fell 0.3 percent to $30,468 from $30,567. The per-capita figure dropped because the county's population grew more rapidly than personal income.

Per-capita personal income for metro areas in the region, ranked by growth or decline:

• Pensacola, $33,596, up 0.8 percent
• Pascagoula, $33,594, down 0.1 percent
• Mobile, $30,468, down 0.3 percent
• Huntsville, $38,090, down 0.4 percent
• Montgomery, $35,973, down 0.4 percent
• Gulfport-Biloxi, $35,540, down 0.4 percent
• Birmingham, $38,468, down 3.6 percent-- Bureau of Labor Statistics

Check out more on this story on Al.com>

In two different stories today from CNN Money>

New home sales rebounded in June from the record low hit the previous month but remained sluggish.

New home sales increased 23.6% to a seasonally adjusted annual rate of 330,000 last month, up from an downwardly revised 267,000 in May, the Commerce Department reported Monday. Sales year-over-year fell 16.7%.

The June sales pace is the second slowest ever on record since the Commerce Department began tracking the data in 1963.

But it was slightly better than the annual rate of 310,000 economists were expecting, according to a consensus survey by Briefing.com.

And on the downside>

In the latest sign of renewed turbulence in the housing market, an industry group said Thursday that sales of existing homes fell 5.1% in June.

The National Association of Realtors reported that existing home sales fell last month to a seasonally adjusted annual rate of 5.37 million units, down from 5.66 million in May. Sales year-over-year were up 9.8%.

Analysts had expected sales to fall to an annual rate of 5.09 million units, according to consensus estimates from Briefing.com.

Mortgage rates fell this week to the lowest level on records dating to 1971, giving consumers added incentive to lock in low payments for home purchases and refinanced loans.

The average rate for 30-year fixed loans sank to 4.69 percent, from 4.75 percent last week, mortgage company Freddie Mac said Thursday.

That's the lowest point since Freddie Mac began tracking rates in April 1971. The previous record of 4.71 percent was set in December. Rates for 15-year and five-year mortgages also hit lows.

Mortgage rates have fallen over the past two months as nervous investors have shifted money into the safety of Treasury bonds. The demand for Treasurys has caused Treasury yields to fall. And mortgage rates tend to track the yields on long-term Treasurys.

Yet the falling rates have yet to spark a home-buying boom — or energize the economy. New-home sales collapsed in May after homebuying tax credits expired. The economy also remains under pressure from high unemployment. And many people don't qualify under tightened lending rules.

"As long as prospective homebuyers are still concerned about their jobs and financial well-being, many will be reluctant to take the plunge, even though affordability has never been better," said Greg McBride, senior financial analyst with Bankrate.com.

Low rates throughout the economy also hurt one group of Americans: savers. Puny rates are especially hard on people living on fixed incomes who are earning next to nothing on their savings.

Lending activity remains sluggish. Mortgage application volume dipped 6 percent last week from a week earlier, according to the Mortgage Bankers Association. Refinancing activity fell 7 percent. And mortgage applications to buy homes slipped 1.2 percent.

Read more from Comcast News>

Homebuilders are sending a message: They won't be able to contribute much to the economic recovery now that government home-buying incentives have vanished.

 Home construction and applications for building permits sank in May, overshadowing favorable reports on manufacturing and wholesale inflation.

Fewer homes means fewer jobs. Construction fuels a broad swath of industries across the economy. Yet double-digit unemployment is among the main reasons people have passed on buying new homes. Even with near-record-low mortgage rates and a glut of foreclosed properties on the market, the industry is struggling.

 "The economy is growing and the housing market is still in recession," said Eugenio Aleman, senior economist with Wells Fargo Securities. "It;s not going to contribute to growth, but it is not going to pull the economy back down."

 Overall, new home and apartment construction fell 10 percent in May to a seasonally adjusted annual rate of 593,000, the Commerce Department said Wednesday. April's figure was revised downward to 659,000.

 See more from the Associated Press>



Fannie Mae has said that it will not accept loans for foreclosure properties still under a redemption period, a policy that local agents say could cripple lender-owned sales.

Foreclosures all come with a set period in which a borrower can reclaim the property upon payment of amounts owed. In most states, that period ranges from 30 days to six months; in Alabama, it's a year, according to agents.

Effective May 27, Fannie Mae considers unexpired redemption periods an unacceptable title defect, meaning that property is not eligible for a Fannie Mae conventional loan until the redemption period expires.

Local agents used to remedy the title issue by getting additional insurance coverage such as a surety bond or redemption bond, but Fannie Mae has said those bonds will not be accepted.

"I have been waiting for exactly this to happen for several years because (Alabama foreclosure properties) don't have a clear title," said Jeff Newman, executive director of the Mobile Area Association of Realtors. "Mississippi has 30 days, and some states don't have any time limit."

 For more, see the article from al.com>

The NATIONAL ASSOCIATION OF REALTORS®' Board of Directors, which met on Saturday at the tail end of the Midyear Meetings & Trade Expo in Washington, D.C., approved a rule that bans REALTORS® from denying equal professional services to a customer on the basis of sexual orientation.

The board amended Article 10 of the Code of Ethics, which addresses "duties to the public." That part of the Code already prohibits REALTORS® from discriminating against customers on the basis of race, color, religion, sex, handicap, familial status, or national origin. Standard of Practice 10-3 was also amended to prohibit discrimination on the basis of sexual orientation in any advertisements for selling or renting property.

The change, met with applause, was passed unanimously by the Professional Standards Committee earlier in the week. The measure will now go before the NAR Delegate Body for approval at NAR’s annual conference in November.

Many other agenda items also were discussed and acted upon at the board meeting. Here's a roundup of the highlights:

From the National Association of Realtors>

The number of sales increased from 318 to 326 between March and April while the average sale price increased dramatically by 20.35 percent from $128,396 to $154,530. The number of sales increased in every price range over $100,000. Sales dropped from 119 to 93 in the $0-$99,999 range, and eight sales occurred over $500,000 compared to four sales in April, 2009, and seven in April, 2008. The highest volume of sales was 97 in the $100,000-$149,999 bracket which showed an increase from 96 in March and 83 sales in April, 2009. The median sale price rose to $130,000 from $118,500 in March. The Mobile market showed strong signs of recovery.
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The average number of months to sell the existing inventory of properties decreased to 11.50. The number is calculated by dividing the number of properties for sale, 3750, by the number of sales, 326. For April, the properties for sale increased and the number of sales increased. This number was 11.38 in April, 2009, and 11.51 in March, 2010. The latest U.S. rate is 8.5 in February, 2010.

The latest figures for the U.S. market in February revealed a 9.1 percent increase in the number of sales from January to February, and a 7.1 percent increase from February, 2009, to February, 2010. The average sale price fell to $208,700, or -1.6 percent from January, 2010. The median price also fell 0.2 percent to $164,600 for the same period.

The highest volume market was under $200,000. Of the 326 total sales in April, 254, or 77.9 percent, were in this price range. Forty-seven properties sold in the $200,000-$299,999 price range, seventeen in the $300,000-$499,999 range, and eight above one-half million. In April, 92.3 percent of all sales were $300,000 and lower. The number of sales in the $300,000-$499,999 bracket increased from 12 to 17.

The Mobile market showed signs of increasing recovery in April. This month’s absorption rate of 11.50 compared to 8.5 for the U.S. shows that the Mobile market still contains too much inventory. Almost 78 percent of all Mobile sales occurred in the price range under $200,000, and 92 percent were under $300,000.

The commercial real estate market is experiencing its worst liquidity challenge in almost 20 years, and it is vital that Congress take action to prevent a deepening crisis, the National Association of Realtors(R) said in testimony to the U.S. House of Representatives Subcommittee on Oversight and Investigations today.


During a field hearing here, G. Joseph Cosenza, an owner of Inland Real Estate Group in Oak Brook, Ill., testified on behalf of NAR and the Illinois Association of Realtors(R). Cosenza said the crisis is driven by a confluence of high unemployment, a slow economy, weakening commercial property fundamentals, and an increase in commercial loan delinquencies.


"Commercial real estate is the basis for much of the growth in the American industry and economy, and having a stable and well-functioning commercial market is crucial to our nation's economic recovery," Cosenza said. "But the market is now in the midst of a financial meltdown and many property owners are underwater. We cannot regain our footing until action is taken on such issues as an enhancement of liquidity and extensions of terms for performing properties."

Cosenza outlined a number of proposals he urged the congressional panel to consider.
 
First, NAR supports changes that will boost lending to the commercial real estate and small business markets, he said. Currently, due to the slumping economy and falling commercial real estate values, many commercial banks have tightened their credit standards and reduced their loan volumes. Credit unions have often filled this need in the past, but they are hampered by a business lending cap of 12.25 percent of total assets. NAR strongly supports H.R. 3380, "Promoting Lending to America's Small Businesses Act," which would increase the cap on credit union lending to 25 percent of total assets.

Cosenza also pointed out that commercial loans are often short term, and property owners must refinance frequently. "More than half of the outstanding business loans held by credit unions have been extended by those approaching, or at, the cap. That means that credit unions with experience in handling commercial loans are unable to continue helping us get out of this crisis," Cosenza said.

In addition, lenders should be encouraged to extend the term of current loans, he said, but they have been wary of offering extensions because of oversight and regulatory concerns.

 For the complete story, see MarketWatch> 

Millions of Americans are still likely to lose their homes in the coming years, but the foreclosure crisis is finally showing signs of subsiding.

The number of households facing foreclosure in April fell 2 percent from a year ago, the first annual decline in five years, RealtyTrac Inc. said Thursday. It followed a report earlier this week from credit reporting agency TransUnion, which said the percentage of borrowers who had missed at least two months of payments posted the first quarterly drop in four years.

Shaun Donovan, President Barack Obama's housing secretary, said the housing market is clearly in better shape than a year ago."In just about every indicator in the market, we've either seen stabilization or significant improvement," he said Thursday. "It doesn't mean we're out of the woods yet."

But the data aren't all sunny. While the number of new delinquencies is dropping, the number of borrowers losing their homes is still rising. Banks seized a record 92,000 homes last month. Many analysts project that home prices will turn downward again this fall as banks dump more foreclosed properties at low prices.

 See the full story at Yahoo News>



FHA has played a fundamental role in helping stabilize the nation’s housing market; however, FHA reform is critical for keeping the housing and economic recovery on the right track.

That’s according to David H. Stevens, assistant secretary of the U.S. Department of Housing and Urban Development and Federal Housing Administration commissioner, in an address to several thousand Realtors® gathered at a special three-day real estate summit, Realtors® on the Rise: Stabilizing the U.S. Mortgage Finance Delivery System, May 11-13, during the Realtors® Midyear Legislative Meetings & Trade Expo here.

Stevens credited increased home buyer demand, brought about by the home buyer tax credits, and the federal government’s purchase of mortgage-backed securities for helping restore consumer confidence and get the economy moving.

“Home prices and sales are beginning to recover, inventories are down, private capital is beginning to re-emerge, investor confidence is coming back and the job market is showing signs of improvement. These all show renewed confidence in the housing market. We need to finish the job now and make the housing recovery sustainable and keep the economy on the right track,” said Stevens.

Despite the signs of improving stability, Stevens said that the housing market continues to face challenges, mainly from unemployment and homeowners with negative equity. “These issues need to be dealt with responsibly, we need solutions to help the most severely distressed homeowners – those most in need and at risk – and when we can’t help them we need to make the transition as smooth as possible.”

For more, see the release on Realtor.org>

The Mobile Bay CVB is continuing to communicate that our historic, vibrant city is open for business as usual and the oil spill currently has not affected our tourism/convention activities. Visitors and convention attendees are being welcomed to our area and are receiving the top-quality service and experience that has come to be expected from Mobile Bay.  Our sales managers and media relations staff are working with the CVB’s various audiences to continue to deliver up-to-date information as well as reinforce the fact that the Mobile Bay area is indeed open for business.

Dauphin Island continues to be part of a flurry of activity.  Prevention and clean-up crews are in full force on the island staging and installing preventative measures in Dauphin Island waters and the surrounding area.  The Island also has National Guard troops and construction crews working diligently to add protection for critical habitats and infrastructure on the Island’s west end.  Officials from the EPA, ADEM, and other organizations have been periodically monitoring air and water quality.  Governor Riley visited the Island today to see first-hand the issues and activities related to the oil spill and its current and potential future effects on Dauphin Island.

 Like everyone along the Gulf Coast, the Mobile Bay CVB is actively watching the status of this oil spill. We are closely monitoring all information sources related to the oil spill and at this point, the extent of any potential impact is unclear. If coastal impact becomes an issue, we will provide you with any and all information regarding affects to our travel/tourism industry via email, social media sites and our website (below).

Mobile.org

Facebook Group:  Friends of The Mobile Bay Convention & Visitors Bureau



The Mobile City Council has passed a one-cent sales tax increase.

As of June 1, sales tax in Mobile will be 10%. Restaurants are exempt. The increase expires September 30, 2011.

The city says the increase sales tax will “stop the bleeding,” but it will not address Mobile's long term budget crisis. When the sales tax expires, city officials are projecting a $11 million deficit.

“We’ve reached a compromise that is in the best interest of our city,” Jones said. “We realize there are no perfect solutions to this unprecedented economic crisis in our country, state and city. Now is the time for us to look at what we can afford and what we cannot. This compromise represents us moving on so our city can recover without immediate layoffs and without shutting down important services that citizens expect.”

For more, see the release on WKRG.com>

From the Mobile Chamber of Commerce Facebook page;

"The Mobile Area Chamber created Offshore Alabama (www.offshorealabama.com) more than 18 months ago. This task force of the oil and gas industries located in the Mobile area, was formed as a unified voice to recruit additional capacity for oil and gas suppliers here, and to create awareness of the significance of this burgeoning industry in the area. On Friday, April 30, they released the following information to its members. This information is important to share with everyone supportive of the Mobile Area Chamber.

• A Unified Command of industry, federal, state and local environmental and emergency management agencies has been established at Coast Guard Sector Mobile to provide a robust response to this disaster. Now is not the time for finger pointing; now is the time to work together to mitigate further damage to the environment and the economy.

• The entire regional economy could be affected by this spill, from shrimpers and oystermen to commercial and recreational fishermen, restaurateurs, hotel and condominium resort managers, and realtors-and everyone who works along the waterfront or makes their living on the water. Additionally, those who enjoy our coasts, beaches, the Delta and our inland waterways, whether for recreational boating, birding, hunting, hiking or other pursuits, will be affected.

• We also recognize America has long-depended on the Gulf of Mexico for oil and gas products - and jobs - that that underpin our economy.

• We believe that the oil and gas industry will learn valuable lessons from this spill that will help to prevent such accidents in the future and to ensure enhanced safety and stronger environmental protection.

• As tragic as this accident is, we remain committed in our support of the oil and gas industry in the Gulf, which provides not only good paying jobs for our region's residents but which serves as a much-needed source of energy for industry and customers throughout America. It is critical that the U.S. should have access to increased domestic supplies.

• America must diversify its energy sources to lessen reliance on foreign countries and to develop alternative and renewable energy sources. But we are a long way from being able to depend solely on renewable energy sources. Until then, oil and gas from the Gulf of Mexico will remain a strategically important resource for the U.S. that not only enhances our national security but supports our economic recovery.

If you are interested in volunteering in clean up efforts of this oil spill, three local agencies - the Mobile Bay National Estuary Program, Mobile Baykeeper and Alabama Coastal Foundation have joined forces to register volunteers. You will only need to register with ONE of these agencies to be added to the database. To volunteer, e-mail, mbnep@mobilebaynep.com, info@mobilebaykeeper.org or info@joinafc.com."

 

Walt Bolton's company is taking green building to a new level with Heather's Glen, an energy-efficient subdivision in Silverhill that has a windmill in every yard and a docking station for hybrid cars.

BES Inc. has built the infrastructure and roads for 13 lots on an 8-acre field of grass along Lacey Road, off Baldwin County 48. Bolton said he plans to build homes there using Leadership in Energy and Environmental Design, or LEED, guidelines.

"These homes have the potential to have a power bill of less than $50 per month," said Bolton, the chief executive officer of BES in Fairhope, which offers architect, engineering and construction services.

The homes, which includes the lot, will be priced between $200,000 and $300,000, and range from 1,200- to 2,400 square feet.

The LEED-certified homes should withstand 175 mph winds, Bolton said. Each will have a windmill, but Bolton said owners would also have the option to "go completely off the power grid."

For the full story, see Going green, not just lawn in Al.com>



Statewide home sales jumped by nearly 50 percent in March, according to the Alabama Center for Real Estate.

The total number of homes sold in Alabama during the month totaled 3,540, which is 49 percent more than February and more than 14 percent greater than March of last year, said ACRE’s monthly home sales report.

But as the spring season got into full swing, inventory of homes for sale rose to 40,642, a 3.5 percent increase over February and a 4.3 percent increase over last year.

The center said the inventory to sales ratio, or the amount of time it would take to sell the current supply, was 11.5 months in March.

March’s median sales price rose 9 percent from February to $123,064, while the average selling price rose more than 12 percent to $146,811.