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By Susanne Dwyer

Fed Has Green Light

February brought the economy an impressive 313,000 jobs and 4.1 percent unemployment, with average hourly wages up four cents to $26.75. Construction jobs, notably, rose by 61,000.

“[These] employment numbers strengthen the view that the U.S. economy is still on a strong growth trajectory,” said Gad Levanon, chief economist for North America at The Conference Board, which assesses consumer confidence. “These numbers also make it clear that employment growth did significantly accelerate in response to the improvement in the overall economy during 2017.”

The figures, announced on Friday by the Labor Department, give the go-ahead to the Federal Reserve to raise rates; the Fed is gathering later this month to vote. According to Lawrence Yun, chief economist of the National Association of REALTORS® (NAR), February’s gains all but guarantee a hike.

“The strong job growth assures at least three interest rates hikes by the Federal Reserve in 2018,” said Yun in a statement. “Because of the low unemployment rate, further normalization in monetary policy should be expected in 2019 as well, meaning another three or four rate hikes next year.”

Although mortgage rates are more moved by Treasury yields, a Fed increase can influence the cost of a loan, including mortgages. Mortgage rates have soared since the start of the year, with the average, 30-year fixed rate on track toward 4.5 percent.

“That in itself hurts housing affordability—but factors that can help with affordability are more income to households (possibly a second income-earner getting a job) and if home prices can finally moderate,” Yun said. “For slower home price growth, more home construction is needed. Job openings in the construction industry remain at historic highs. It is now a matter of providing necessary skills to go into the industry.”

Builders are confident in their prospects this year, but are being challenged by a lack of labor, according to the National Association of Home Builders (NAHB).

Suzanne De Vita is RISMedia’s online news editor. Email her your real estate news ideas at sdevita@rismedia.com. For the latest real estate news and trends, bookmark RISMedia.com.

The post February Jobs Impress appeared first on RISMedia.

…read more

From:: Finance and Economy

By Susanne Dwyer

Fed Has Green Light

February brought the economy an impressive 313,000 jobs and 4.1 percent unemployment, with average hourly wages up four cents to $26.75. Construction jobs, notably, rose by 61,000.

“[These] employment numbers strengthen the view that the U.S. economy is still on a strong growth trajectory,” said Gad Levanon, chief economist for North America at The Conference Board, which assesses consumer confidence. “These numbers also make it clear that employment growth did significantly accelerate in response to the improvement in the overall economy during 2017.”

The figures, announced on Friday by the Labor Department, give the go-ahead to the Federal Reserve to raise rates; the Fed is gathering later this month to vote. According to Lawrence Yun, chief economist of the National Association of REALTORS® (NAR), February’s gains all but guarantee a hike.

“The strong job growth assures at least three interest rates hikes by the Federal Reserve in 2018,” said Yun in a statement. “Because of the low unemployment rate, further normalization in monetary policy should be expected in 2019 as well, meaning another three or four rate hikes next year.”

Although mortgage rates are more moved by Treasury yields, a Fed increase can influence the cost of a loan, including mortgages. Mortgage rates have soared since the start of the year, with the average, 30-year fixed rate on track toward 4.5 percent.

“That in itself hurts housing affordability—but factors that can help with affordability are more income to households (possibly a second income-earner getting a job) and if home prices can finally moderate,” Yun said. “For slower home price growth, more home construction is needed. Job openings in the construction industry remain at historic highs. It is now a matter of providing necessary skills to go into the industry.”

Builders are confident in their prospects this year, but are being challenged by a lack of labor, according to the National Association of Home Builders (NAHB).

Suzanne De Vita is RISMedia’s online news editor. Email her your real estate news ideas at sdevita@rismedia.com. For the latest real estate news and trends, bookmark RISMedia.com.

The post February Jobs Impress appeared first on RISMedia.

…read more

From:: Real Estate News

By Susanne Dwyer

Access to affordable, safe mortgage financing is a struggle for many rural Americans. Large banks and mortgage lenders often do not operate in rural areas. The condition of many homes, while typical for rural areas, do not meet the property requirements associated with the Federal Housing Administration or Department of Veterans Affairs mortgage financing programs. Without the home loans provided through the U.S. Department of Agriculture’s (USDA) Rural Housing Service, the housing markets in many rural communities would be non-existent.

The USDA Rural Development agency operates the Rural Housing Service, which provides Section 502 Direct and Guaranteed Loans to low- to moderate-income homebuyers in designated rural or “rural in character” areas throughout the country. Section 502 loans are used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities. The Guaranteed Loans are provided by private lenders and insured by the Rural Housing Service. Guaranteed Loans are self-funded and budget neutral, meaning the fees paid by borrowers fully pay for the program, placing no burden on American taxpayers. The Direct Loans benefit very low-income or low-income borrowers with funds loaned directly by the Rural Housing Service, without the use of private lenders.

Currently, USDA is in the process of reviewing agency designated “rural” geographic areas for eligibility for all Rural Development programs, including Section 502 loans. These reviews occur every five years, with the last review conducted in 2012-13. For 2018, USDA is analyzing over 700 areas currently eligible for Rural Housing loans to see if they are now ineligible for USDA Rural Development programs due to a rise in population, as determined by American Community Survey (ACS) data. This review is conducted through each state’s USDA Rural Development Office. A community with a population that has grown over the “rural” threshold could be found to be “rural in character” and thus eligible for USDA Rural Development programs.

Prior to this review, USDA did not provide a consistent and openly stated standard for state offices implementing a “rural in character” analysis. NAR previously commented on the need for transparency in the review process. Last fall, USDA released new guidance on how state offices would assess whether an area is “rural in character.” Areas that could qualify as “rural in character” must have a population between 2,500 and 10,000 and successfully meet the standard “rural in character” analysis; however, USDA will consider some areas with a population between 10,000 and 35,000, if the area meets the standard “rural in character” analysis and has a serious lack of mortgage credit for lower- and moderate-income families.

USDA will take into consideration several factors in the analysis to determine if a community is “rural in character.” For example, USDA will discount population numbers that stem from transient college or university students or from a prison located in the geographic area. In addition, USDA will assess the economic vitality of the area. Economic vitality factors include whether the area’s economy faces high unemployment due to loss of a major …read more

From:: Finance and Economy

By Susanne Dwyer

A veteran REALTOR® of more than 35 years and an active industry advocate, Charlie Oppler has a unique vantage point: he lives and breathes the business from both the grass-roots and big-picture level. As COO of Prominent Properties Sotheby’s International Realty, Oppler and his partner—CEO Randy Lyn Ketive—have taken a back-to-basics philosophy and a strong commitment to agent support to bring their firm to iconic status in Northern New Jersey’s luxury arena. Meanwhile, Oppler found time to serve on and chair dozens of committees at the local, state and national level, including his recent role as 2017 REALTOR® Party Director for the National Association of REALTORS®. Here, Oppler shares how he’s managed to grow a firm while supporting the good of the industry as a whole.

Maria Patterson: Tell us a little bit about your path in real estate, Charlie.
Charlie Oppler: I began my professional career after graduating The College of New Jersey in 1980. I worked for the March of Dimes and recruited Joe Murphy (Murphy Realty Better Homes and Gardens) and Dick Schlott to co-chair a charity event. They both accepted, and by Nov. 1, 1981, I went to work for Joe Murphy in the Saddle River. I left Murphy in November 1984 and went to manage for Schlott, REALTORS® in December. I worked for Dick Schlott until May 1989 and then went back to Murphy as a manager of the Fort Lee office until December 1991.

In January 1992, Randy Lyn Ketive and I became partners, and we began building our company. She had one office in Fort Lee with about eight agents. We affiliated with Sotheby’s International Realty in 2009, after being an independent (Classic Realty Group) for 17 years. We just celebrated our 25th anniversary as partners.

MP: How many offices and agents does the firm have today?
CO: We currently have 12 offices with about 630 agents and 40 employees.

MP: How has being part of the Sotheby’s brand played a role in your success and growth over the years?
CO: The biggest reason why being part of Sotheby’s has contributed to our growth is that it creates market credibility and presence. We’re in a vibrant bedroom community of New York City, and it’s a lot easier for somebody to look to our brand than an independent. That said, while being part of Sotheby’s International Realty has played a part in our growth because of the reputation of the brand, it still comes down to the local operation, which is true for any franchisee.
Randy Lyn Ketive: The fact that we’ve been consistent—and in the market for so long—allowed us to grow our company. The international presence of Sotheby’s is also an important factor when marketing a property.

MP: How do you differentiate your firm in the market?
CO: Our company is the premier luxury brand throughout Northern New Jersey. We have had the highest average price in New Jersey for the past seven years, and we’re consistently No. 1, 2 or 3 in most markets. We’re ranked No. 1 in many individual …read more

From:: Real Estate News