Following the surprise spring cold snap that left much of the country with their flowers buried under snow and torrential rain, it should be no surprise that people are swarming to the warmer climates of the south and west, as the U.S. Census notes accelerated growth in 50 top metros are largely concentrated in those regions.
This year, the Census experienced a watershed moment when the U.S. population turned over to 300 million people. In 1915, there were 100 million. In 1965, there were 200,000 million.
With the population growing at a faster rate than ever, there's a consequential rise in the number of households, expected to grow between 2006 and 2015 by 1.5 million homes annually. That's more than any other period besides the 1970s, when baby boomers became heads of households in record numbers, including a peak divorce rate in 1979.
Immigration plays a large role in the growing population. According to information supplied to agents from the Austin Board of Realtors:
In the not-too-distant future, over 50 percent of your customers will no longer be Anglo-American.
Each year, 2.7 million people -- the majority of which are non-Anglo -- join the U.S. population.
Over 35 percent of the youth market (16 to 24 yr. olds) are non-Anglos. These are the homebuyers of the future.
Information on Realtor.org in 2005 stated, "Minorities will grow evermore important to housing markets over the next 10 years, accounting for an estimated two-thirds of new households. They will account for more than 50 percent of first-time homebuyers by 2010, when nearly three in 10 households will be headed by a minority."
The patterns of immigration have changed since the last century, when a majority of Irish and European immigrants came to the U.S. through northeastern ports, causing exponential growth on the east coast. While east coast immigration still occurs, today, most immigration comes from Asia and Mexico (31 percent of immigrants in 2004,) through western and southern points of entries. Approximately 34 million immigrants live in the U.S., with roughly 9 million of those living as illegals.
According to population estimates just released for all metro areas by the U.S. Census Bureau, the Atlanta metro area gained 890,000 residents from April 1, 2000, to July 1, 2006, the largest numerical gain of the nation's 361 metro areas at 5.1 million.
Overall, six metro areas each gained at least 500,000 people between 2000 and 2006.
Dallas-Fort Worth had the second largest numeric increase at 842,000, and totaled about 6 million people. Houston (with an increase of 825,000), Phoenix (787,000) and Riverside-San Bernardino-Ontario, Calif. (771,000) rounded out the top five metro area gainers over the time period. The five metro areas experiencing the greatest numeric change between 2000 and 2006 were in the South or West.
The Northeast metro area with the greatest numeric change between 2000 and 2006 was New York (seventh overall nationally), while the Midwest metro area with the greatest numeric change over the same period was Chicago (10th overall nationally).
New York was the most populous metro area on July 1, 2006, with 18.8 million people, followed by Los Angeles (13 million) and Chicago (9.5 million). Fourteen metro areas had populations of 4 million or more.
Population losses were due to natural disasters and job eliminations. Not surprisingly, the New Orleans metro area experienced the greatest numeric loss from April 1, 2000, to July 1, 2006, declining 292,000 since 2000 to 1 million on July 1, 2006. It was followed by Pittsburgh (a loss of 60,000) and Cleveland (a loss of 34,000). The New Orleans-Metairie-Kenner, La., metro area also had the biggest percentage loss during the same time period at 22.2 percent. It was followed by Gulfport-Biloxi, Miss. (a loss of 7.4 percent) and Weirton- Steubenville, W.Va.-Ohio (a loss of 5.2 percent).
St. George, in the southwestern part of Utah, was the fastest-growing metro area between 2000 and 2006, with a growth of 39.8 percent to total 126,000 on July 1, 2006. Rounding out the top five were Greeley, Colo. (31 percent); Cape Coral-Fort Myers, Fla. (29.6 percent); Bend, Ore. (29.3 percent); and Las Vegas (29.2 percent).
The 50 fastest-growing metro areas were almost evenly distributed between just two regions -- 23 in the West and 25 in the South. One metro area, Fayetteville-Springdale-Rogers, Ark.-Mo., straddled both the South and Midwest regions.
Sioux Falls, S.D., was the lone metro area among the top 50 fastest-growing located completely in the Midwest.
Of the 50 fastest-growing metro areas, none were in the Northeast. York-Hanover, Pa., the fastest-growing metro area in the Northeast, ranked 95th.
More than four-fifths of all U.S. metro areas (305 out of 361) had a larger population on July 1, 2006, than on April 1, 2000. The 50 fastest-growing metro areas between April 1, 2000, and July 1, 2006, all grew by at least 13.8 percent, which is more than double the nation's total population gain of 6.4 percent during the same time period, suggesting accelerated migration to cities.
As of July 1, 2006, the 361 metro areas in the United States contained 249.2 million people -- 83.2 percent of the nation's population.
Tuesday, April 17, 2007
Mortgage rates up!
Bankrate reports that as of April 5
"The benchmark 30-year fixed-rate mortgage rose 3 basis points to 6.25 percent ...One year ago, the mortgage index was 6.51 percent; four weeks ago, it was 6.19 percent." This represents a three week increase in the 30 year fixed rate. Speculation continues as people wait to see the next move of the Federal Reserve.
To read more: Bankrate.com
"The benchmark 30-year fixed-rate mortgage rose 3 basis points to 6.25 percent ...One year ago, the mortgage index was 6.51 percent; four weeks ago, it was 6.19 percent." This represents a three week increase in the 30 year fixed rate. Speculation continues as people wait to see the next move of the Federal Reserve.
To read more: Bankrate.com
Realtors® Urge Senate to Develop Comprehensive National Natural Disaster Plan
WASHINGTON, April 11, 2007 -
The National Association of Realtors®, at two congressional hearings today, called upon the Senate to enact a comprehensive natural disaster plan that addresses insurance availability and affordability in both property and casualty insurance markets, acknowledges the importance and limitations of the private markets, and recognizes the respective responsibilities of property owners and all levels of government.
The plan should recognize that property owners, private insurance markets and all levels of government must work together to successfully address the problem of available and affordable property insurance, especially in disaster prone areas, NAR said.
In testimony submitted to the Senate Committee on Banking, Housing and Urban Affairs, as well as the Committee on Commerce, Science and Transportation, NAR pledged to work with Congress to craft a national natural disaster plan that would include accessible and affordable insurance, improved preparedness and thorough planning for recovery efforts. NAR noted the importance of insurance to finance real estate purchases.
“NAR is a leading advocate for homeownership and has been an active proponent for the creation of comprehensive federal natural disaster legislation. If insurance is unaffordable or unavailable, there will be a serious threat to residential real estate, affecting consumers’ ability to purchase single family homes, condos and co-operatives, as well as opportunities to invest in rental property and commercial real estate,” said NAR President Pat Vredevoogd Combs, of Grand Rapids, Mich., and vice president of Coldwell Banker-AJS Schmidt.
NAR noted that a strong real estate market is the linchpin of a healthy economy, generating jobs, wages, tax revenue and a demand for goods and services. To maintain a strong economy, the vitality of residential and commercial real estate must be safeguarded.
NAR presented a statement of principles in support of the creation of a federal policy that addresses catastrophic natural disasters. Those principles must be included in a comprehensive approach to natural disaster preparedness that encourages personal responsibility, promotes mitigation measures, ensures insurance availability and strengthens critical infrastructure, NAR said.
Last month, NAR both testified and submitted statements for the record at two House hearings on natural disaster insurance. In addition, this past September the trade group hosted a Federal Natural Disaster Policy Symposium, where attendees from across the country reiterated that natural disasters are a national problem and that state resources are not sufficient to deal with such “mega-catastrophes.”
The National Association of Realtors®, at two congressional hearings today, called upon the Senate to enact a comprehensive natural disaster plan that addresses insurance availability and affordability in both property and casualty insurance markets, acknowledges the importance and limitations of the private markets, and recognizes the respective responsibilities of property owners and all levels of government.
The plan should recognize that property owners, private insurance markets and all levels of government must work together to successfully address the problem of available and affordable property insurance, especially in disaster prone areas, NAR said.
In testimony submitted to the Senate Committee on Banking, Housing and Urban Affairs, as well as the Committee on Commerce, Science and Transportation, NAR pledged to work with Congress to craft a national natural disaster plan that would include accessible and affordable insurance, improved preparedness and thorough planning for recovery efforts. NAR noted the importance of insurance to finance real estate purchases.
“NAR is a leading advocate for homeownership and has been an active proponent for the creation of comprehensive federal natural disaster legislation. If insurance is unaffordable or unavailable, there will be a serious threat to residential real estate, affecting consumers’ ability to purchase single family homes, condos and co-operatives, as well as opportunities to invest in rental property and commercial real estate,” said NAR President Pat Vredevoogd Combs, of Grand Rapids, Mich., and vice president of Coldwell Banker-AJS Schmidt.
NAR noted that a strong real estate market is the linchpin of a healthy economy, generating jobs, wages, tax revenue and a demand for goods and services. To maintain a strong economy, the vitality of residential and commercial real estate must be safeguarded.
NAR presented a statement of principles in support of the creation of a federal policy that addresses catastrophic natural disasters. Those principles must be included in a comprehensive approach to natural disaster preparedness that encourages personal responsibility, promotes mitigation measures, ensures insurance availability and strengthens critical infrastructure, NAR said.
Last month, NAR both testified and submitted statements for the record at two House hearings on natural disaster insurance. In addition, this past September the trade group hosted a Federal Natural Disaster Policy Symposium, where attendees from across the country reiterated that natural disasters are a national problem and that state resources are not sufficient to deal with such “mega-catastrophes.”
NAR Urges HUD to Revamp FHA Program to Help People Stay in Their Homes
WASHINGTON, April 09, 2007 -
In light of the many families being affected by negative subprime mortgages, the National Association of Realtors® encouraged the Department of Housing and Urban Development to act quickly to change the FHA mortgage insurance program to enable more homeowners and their families to keep their homes.
In a letter sent to HUD Secretary Alphonso Jackson, NAR President Pat Vredevoogd Combs strongly urged action by HUD to change FHA rules and waive the requirement that a homeowner’s mortgage be “current” in order to refinance into an FHA loan product.
“Many homeowners who were able to make timely payments under the original terms of their loan are finding it difficult to make payments after rate adjustments,” said Combs. “We believe FHA can design a mechanism where credit worthy borrowers could refinance subject to prudent guidelines, and therefore avoid losing their homes.”
“As the nation’s leading advocate for homeownership, NAR believes that all avenues should be reviewed and that paradigms should be shifted. The goal for all – government, lenders, banks, individuals, and Realtors® -- should be to help keep people in their homes and to avoid or minimize foreclosures,” Combs said earlier this month.
In recent days, it has been reported that various lenders have expressed a willingness to engage in this program to avoid costly foreclosure proceedings. This would not be a bailout for lenders, but would be a vehicle for helping prevent a number of Americans from losing their homes. “NAR believes in a strong FHA and would support efforts to ensure that only borrowers who truly have the capacity to repay receive the opportunity to refinance under such changes,” said Combs.
NAR encouraged HUD and the FHA to undertake a “robust public education campaign” to promote foreclosure prevention by raising the awareness of FHA and HUD programs. NAR has partnered with HUD and FHA in the past to create and distribute brochures designed to inform potential homebuyers about the various FHA programs. NAR also continues to be a consistent advocate for FHA modernization, so as to keep the products and services they offer pertinent to today’s consumers and housing market
“We believe that with some minor regulatory adjustments to the FHA program that a significant subset of borrowers facing the prospect of foreclosure could safely refinance into an FHA mortgage. We are committed to continue our efforts with HUD and FHA. We not only want to see people achieve the American dream of home ownership, but also we want them to keep it,” said Combs.
The National Association of Realtors® , “The Voice for Real Estate,” is America’s largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.
In light of the many families being affected by negative subprime mortgages, the National Association of Realtors® encouraged the Department of Housing and Urban Development to act quickly to change the FHA mortgage insurance program to enable more homeowners and their families to keep their homes.
In a letter sent to HUD Secretary Alphonso Jackson, NAR President Pat Vredevoogd Combs strongly urged action by HUD to change FHA rules and waive the requirement that a homeowner’s mortgage be “current” in order to refinance into an FHA loan product.
“Many homeowners who were able to make timely payments under the original terms of their loan are finding it difficult to make payments after rate adjustments,” said Combs. “We believe FHA can design a mechanism where credit worthy borrowers could refinance subject to prudent guidelines, and therefore avoid losing their homes.”
“As the nation’s leading advocate for homeownership, NAR believes that all avenues should be reviewed and that paradigms should be shifted. The goal for all – government, lenders, banks, individuals, and Realtors® -- should be to help keep people in their homes and to avoid or minimize foreclosures,” Combs said earlier this month.
In recent days, it has been reported that various lenders have expressed a willingness to engage in this program to avoid costly foreclosure proceedings. This would not be a bailout for lenders, but would be a vehicle for helping prevent a number of Americans from losing their homes. “NAR believes in a strong FHA and would support efforts to ensure that only borrowers who truly have the capacity to repay receive the opportunity to refinance under such changes,” said Combs.
NAR encouraged HUD and the FHA to undertake a “robust public education campaign” to promote foreclosure prevention by raising the awareness of FHA and HUD programs. NAR has partnered with HUD and FHA in the past to create and distribute brochures designed to inform potential homebuyers about the various FHA programs. NAR also continues to be a consistent advocate for FHA modernization, so as to keep the products and services they offer pertinent to today’s consumers and housing market
“We believe that with some minor regulatory adjustments to the FHA program that a significant subset of borrowers facing the prospect of foreclosure could safely refinance into an FHA mortgage. We are committed to continue our efforts with HUD and FHA. We not only want to see people achieve the American dream of home ownership, but also we want them to keep it,” said Combs.
The National Association of Realtors® , “The Voice for Real Estate,” is America’s largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.