Distressed Properties Index Rises in Dane County

Distressed Properties Index rises
KAREN RIVEDAL krivedal@madison.com
Friday, April 23, 2010

Dane County’s Distressed Properties Index in March increased to 0.26, up from 0.20 a year ago and slightly up from February’s value of 0.25.

Available at DaneCountyMarket.com, the index charts the prevalence of distressed properties, or those related to foreclosure or the threat of foreclosure.

The March reading suggests more than a quarter of all homes sales in the county involved distressed properties, and it also was a new high for the county since the data began being tracked in January 2006, when the index stood at 0.05 percent.

Index creators Dan Miller, a Madison real estate agent, and Peter Zarov, a Madison title lawyer, said they expect the percentage of distressed property sales to remain above 20 percent for at least the next year due to the continuing rise in foreclosure filings.

(Article from http://www.madison.com/, written by Karen Rivedal)

Another Home Buyer Tax Credit Extension?

First Time Home Buyer Tax Credit Extension – 2010 Government Tax Credit Expires on April 30th
April 23, 2010

The first time home buyer tax credit extension has been a very hot topic but it does not appear as if the $8000 or $6500 tax credit will be extended past April 30th, 2010. Anything could happen at the eleventh hour but at this time there is not a bill for these credits to be extended or expanded.

In November of 2009 the Obama administration decided to not only extend the first time home buyer tax credit but to expand it as well. There is currently a $6500 tax credit for move up home buyers. If you have been living in your primary residence for five years or more you could qualify for the move up home buyers tax credit.

Over the next few days it will be very interesting to see what happens in terms of the first time home buyer tax credit. Many analysts feel as if the housing market could greatly struggle if this tax credit is not extended until later in 2010. Only time will tell what will happen but it should be an interesting conclusion to April.

(Article from www.subprimeblogger.com, Written by Tiffany Mann)

Freddie Mac losses mount, warns of foreclosures

Freddie Mac lost almost $26 billion last year, ominous news for taxpayers who are footing the bill to rescue the mortgage finance company and its sibling Fannie Mae.

Freddie Mac, which has lost a total of almost $80 billion since the housing crisis started in 2007, is bracing for more pain. The McLean, Va.-based company said a record 4 percent of its borrowers are at least three months behind on their payments and facing foreclosure.

Its chief executive, Charles Haldeman, warned Wednesday of a "potential large wave of foreclosures" still to come.

This is a major problem for the federal government, which seized control of Freddie and Fannie in September 2008. The two companies have already siphoned $111 billion from the government to stay afloat. That number is expected to hit $188 billion by fall 2011.

And while Freddie Mac didn't ask for any more bailout money last quarter, the company said it will likely need more financial aid and might never repay it.

"We now have unlimited taxpayer exposure to the bailout of Fannie and Freddie, a bailout nation where the big get bigger, the small get smaller and the taxpayer gets poorer," Rep. Jeb Hensarling, R-Texas, said at a House hearing Wednesday.

Fannie and Freddie dominate the mortgage market, backing about 70 percent of the loans made last year. The two companies purchase mortgages from lenders and package them into securities. Investors are willing to buy the securities because they are effectively guaranteed by the U.S. government. That puts American taxpayers at risk.

But the fragile housing sector is so dependent on the government that officials say they won't have a detailed exit strategy until next year. Underscoring the market's weakness, the Commerce Department said Wednesday that sales of new homes unexpectedly plunged 11 percent from December to January to the lowest level on record.

Treasury Secretary Timothy Geithner told lawmakers Wednesday that the Obama administration will "make sure we bring about fundamental change in the housing market and get ourselves in a position where the government is playing a less risky, but more constructive role in supporting housing markets in the future."

Separately, Freddie Mac warned there is "significant uncertainty as to whether or when we will emerge" from government control.

For taxpayers, stabilizing Freddie and Fannie Mae has been one of the costliest consequences of the financial meltdown. Freddie Mac has received about $51 billion from Treasury to date, and the Obama administration has pledged to cover unlimited losses through 2012.

Freddie Mac said Wednesday it lost $25.7 billion, or $7.89 a share, for all of 2009. Of those losses, $4.1 billion went to dividends paid to the Treasury Department, which holds a nearly 80 percent stake in the company.

In the final three months of last year, Freddie Mac posted a loss of $7.8 billion, or $2.39 a share. The results, however, were a marked improvement over the fourth quarter 2008 when Freddie lost $23.9 billion, or $7.37 a share.

During the most recent quarter, Freddie suffered $7.1 billion in credit losses and a $3.4 billion write-down in low income tax credit investments. Also Wednesday Fannie Mae said in a regulatory filing that it plans to take a $5 billion charge when it reports its fourth quarter results later this week.

(Article from http://www.madison.com/, by Alan Zibel)

8 Dream Homes for Sale in the Madison, Wisconsin Area

7326 Black Hawk Road in Middleton, WI
$2.46 Million
MLS #1566722, Courtesy of Bunbury & Assoc.
4 bedrooms, 6.5 baths, 9502 sq ft, 4.3 acres

2295 Spring Rose Rd in Springdale, WI

$2.8 Million

MLS #1572037, Courtesy of Bunbury & Assoc.

6 bedrooms, 5 baths, 8255 sq ft, 20 acres

26740 Cooper Hill Rd in Richland, WI
$2.9 Million
MLS #1566191, Courtesy of Restaino & Assoc.
4 bedrooms, 4.5 baths, 6200 sq ft, 40 acres






W6500 Hwy B in Burnett, WI
$3.3 Million
MLS#1573293, Courtesy of First Weber
7 bedrooms, 7.5 baths, 6945 sq ft, 272 acres






W6138 Hwy J in Jefferson, WI
$3.5 Million
MLS #1463050, Courtesy of Stark Company
4 bedrooms, 8 bathrooms, 15,124 sq ft, 19 acres

3387 Timber Lane in Cross Plains, WI

$3.83 Million

MLS #1545264, Courtesy of RE/MAX Preferred

5 bedrooms, 4.5 baths, 14,126 sq ft, 26 acres

659 Farwell Drive in Maple Bluff, WI

$5.95 Million

MLS #1537504, Courtesy of Restaino & Assoc.

5 bedrooms, 5 baths, 7219 sq ft, 2 acres and 300 ft of Lake Mendota frontage

5750 Hwy Z in Wyoming, WI

$6.3 Million

MLS #1572013, Courtesy of Bunbury & Assoc.

5 bedrooms, 7 baths, 13,600 sq ft, 217 acres

Don't Feel Bad SpongeBob!

Foreclosures, Short Sales, and REO: Sorting Out the Confusion

As more families struggle to make mortgage payments on time, we hear more about foreclosures, short sales, and REO homes, but what do these words mean?

It seems that hardly a day goes by that there isn’t a report on the news about the rising foreclosures and the current state of the housing market. While it is unarguably a great time to purchase a home, there seems to be a lot of confusion amongst buyers and sellers on what foreclosures, short sales, and REO’s mean, so here I hope to sort them out.

When you purchase a home that is financed by a lender, you sign a note and mortgage which is your promise to repay that loan. When you stop making payments on that loan, the lender can foreclose, meaning they can take the property back from you. Foreclosures can take a really long time to complete, so it’s usually at least about a year after someone stops making payments on their property until the property goes to Sherriff’s Sale. The bank typically buys it back at the Sherriff’s sale and then the property then becomes owned by the bank. The bank sells the property, known as a REO (Real Estate Owned) listing. The bank typically sells the property as-is and will not make any warranties or representations as to the condition of the property. A buyer is usually able to get a really good price on REO properties as the banks slash the list price in order to get the property to sell quickly and off of the bank’s books.

A short sale is when a lender accepts short of the balance due on the mortgage in exchange for release of title so a person is able to sell their property. This typically happens when the homeowner is already a few months behind on their mortgage, however we are seeing more and more short sales where the owner is still current on their payments but knows they won’t able to be current for much longer. Let’s say you owe $200,000 on your house, the market has declined or you took out mortgages that ate up all the equity in your property and your house is only worth $150,000. With a short sale, after buyer and seller reach an accepted offer, the offer goes to the bank for their approval. So the offer of $150,000 gets submitted to the bank, and the bank approves the $150,000 price, but technically the bank is still owed $50,000. At this point the bank will do one of a few things: 1) Sue the borrower for the deficiency, 2) Reserve the right to sue for deficiency but not actually do it, or 3) Waive the deficiency completely (basically forgiving the difference). Clearly, the third option is the best one for the borrower, and we are seeing more and more banks waive deficiency judgments completely. The beauty of the short sale is that it helps the Seller avoid a foreclosure all together, buyer gets a great deal on the property they are purchasing, and the Seller also is able to avoid the nasty impact that a foreclosure would have.

If a homeowner is late on their mortgage, or is currently struggling with their payments, it’s best that they speak with their Realtor as soon as possible. Realtors like myself, who are CDPE’s (Certified Distressed Property Experts) are extremely familiar with negotiating with banks and the intricacies of the short sale process. It is important that a distressed property owner have the best representation possible. If you, or someone you know is struggling with their monthly housing payments, please don’t wait to have them call. In the world of foreclosures, judgments, and financing, timing is everything!

Obama Ups Pressure on Banks to Help Homeowners

Loan servicers must detail plans to assist borrowers long-term. Laggards could face penalties and sanctions.

NEW YORK (CNNMoney.com) -- Struggling to stem the swelling foreclosure tide, the Obama administration announced new steps Monday to pressure banks to help homeowners long term.

The administration said it will require top loan servicers to report their plan to reach a decision on each loan for which they have all the needed documentation. Also, these servicers must explain to Treasury how they will communicate the decision to borrowers.

Servicers will also be required to report the status of each modification. Those failing to meet their obligations could face penalties and sanctions.

To help borrowers through the process, the administration is providing more information on the documents they need to submit to be considered for a permanent modification. Federal, state and local officials will increase outreach to delinquent homeowners.

The administration's move is its latest attempt to jumpstart its $75 billion loan modification plan, which many fear will fall far short of its goal to help up to 4 million delinquent homeowners.

A growing number of borrowers are complaining that they are stuck in trial modifications. Some 650,000 homeowners are currently in this preliminary phase, but only a small fraction have received permanent assistance.

About 375,000 people should receive long-term relief by year end, said Treasury officials in their first estimate of how many permanent modifications would be made this year. The administration is set to release its first report on the conversions in coming weeks.

Under the president's plan, delinquent borrowers are put into trial modifications for several months to make sure they can handle the new payments and to give them time to submit their financial paperwork.

Borrowers that qualify for long-term modifications can keep making the lower payments for five years. At that point, the interest rate will be set at the rate at the time of the adjustment, currently about 5%.

Loan servicers, however, say they are having trouble getting the necessary documents from borrowers, while homeowners maintain that their financial institutions are repeatedly losing the paperwork.

And once homeowners send in their forms, servicers may find these borrowers don't have enough income or have too much equity or savings to qualify. It also may be more profitable for the bank to foreclose on the home than to modify the mortgage.

(Article from Money.CNN.com)

Real Estate Humor

Ha!

Congress Extends and Expands First Time Home Buyer Tax Credit!

Dear Readers,

I'm excited to be able to tell you that Congress has passed an extension of the $8000 first time buyer tax credit. Additionally, there is also an added provision for a $6500 tax credit available to current home owners who make a move right now! This is exciting news!

The new tax credit is available to homeowners who have resided in their primary residence for at least 5 years. There is no requirement in regards to 'buying up', so this credit is an advantage to everyone, even those who are considering downsizing!

This extension/revision is great news for both Buyers and Sellers alike. Buyers - you now have time to find that house if you haven't already done so. Seller's - you now have an added incentive to make a move in the current market. Money is cheap, prices are low, and it's a FANTASTIC time to make a move!

Please feel free to pass this information on to anyone who you think may find it useful. Of course, I'd love to chat with anyone you know who has considered making a move but hasn't been able to do so yet. Your referrals alre always greatly appreciated!

Let me know if you have any questions. Make it a great day!

Nicole
nicolecharles@kw.com
(608) 513-0021

The following information about the tax credit extension is from the National Association of Realtors.

Homebuyer Tax Credit FAQs:

• Q: Existing homeowner credit: Must the new house cost more than the old house?
• A: No. Thus, for example, individuals who move from a high cost area to a lower cost area who meet all eligibility requirements will qualify for the $6500 credit.
  

• Q: I am an existing homeowner. On October 25, 2009, I signed a contract to purchase a new home. I have lived in my current home for more than 5 consecutive years and am within the new income limits. I will go to settlement on November 20. If President Obama has signed the bill by the time I go to settlement, will I qualify for the new $6500 tax credit?
• A: Yes. The existing homeowner credit goes into effect for purchases after the date of enactment (when the bill is signed). There is no reference to the date of contract for the new credit. The provision looks solely to the date of purchase, which is generally the date of settlement.
  

• Q: I am a firsttime homebuyer but was not within the prior income limits at the time I entered into my contract to purchase on October 30, 2009. I will be covered, however, by the new income limits. If the new rules have been signed into law by the time I go to settlement, will I be eligible for a credit?
• A: Yes. The new income limitations go into effect as soon as the President has signed the bill. The income limit and other eligibility rules will look to your status as of the date of purchase, which is the settlement date. So if the new rules have been signed when you go to settlement, you should be eligible for the credit (or a portion of the credit if you're within the phaseout range).
  

• Q: I am an eligible existing homeowner. I have a fair amount of equity in my home. I have found a home with a nonnegotiable price of $825,000. Will I be able to use any of the $6500 tax credit?
• A: No. The $800,000 cap on the cost of the purchased home is firm at $800,000. Any amount above $800,000 makes the home ineligible for any portion of the credit. The $800,000 is an absolute ceiling.
  

• Q: I owned my home for 10 years, but sold it two years ago year and have been renting since. If I purchase a home, will I be eligible for the $6500 tax credit if I meet all the other eligibility tests?
• A: Yes. Because you lived in the home for more than 5 consecutive years of the previous 8, you will qualify for the $6500 credit. For example, Say John and his wife bought a home in 2000 and lived there until 2008 when he got a divorce. Whether John has been renting or bought in the interim, he WOULD INDEED be eligible for the credit because he owned a home and occupied it as his principal residence for 5 consecutive years out of the last 8 years. The keyword here is "consecutive." As long as he lived in that house for 5 years straight what he did since 3 years doesn't impact eligibility.

• Q: I am an eligible firsttime homebuyer. I entered into a contract to purchase on November 1, 2009. Do I have to go to closing before December 1? How does the extension date affect me?
• A: You do not have to close before December 1. Once the legislation has been signed, it will be as if the Nov 30 date had never existed. Therefore, so long as the contract settles before April 30 (or July 1, worst case), the purchaser will be eligible for the credit.
  

The Differences:

Old Tax Credit (Jan 1 - Nov 20, '09) vs.

New Tax Credit (Dec 1 - Apr 30, '10)

First-time Buyer Credit Amount
• Then: $8,000.
• Now: $8,000.

First-time Buyer Definition for Eligibility
• Then: May not have had an interest in a principal residence for 3 years prior to purchase.
• Now: Same.

Current Homeowner Credit Amount
• Then: $0.
• Now: $6,500.

Current Homeowner Definition for Eligibility
• Then: None.
• Now: Must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years.

Termination of Credit
• Then: Purchases after November 30, 2009.
• Now: Purchases after April 30, 2010.

Binding Contract Rule
• Then: None.
• Now: So long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.

Income Limits
• Then: $75,000 - single, $150,000 - married.
• Now: $125,000 - single, $225,000 - married.

Limitation on Cost of Purchased Home
• Then: None.
• Now: $800,000.

Purchase by a Dependent
• Then: None.
• Now: Ineligible.

Anti-fraud Rule
• Then: None.
• Now: Purchaser must attach documentation of purchase to tax return.

Fannie Mae to rent out homes instead of foreclosing

Thousands of borrowers on the verge of foreclosure will soon have the option of renting their homes from Fannie Mae, under a policy announced Thursday.

The government-controlled company, through its new "Deed for Lease" program, will allow borrowers to transfer ownership to Fannie Mae and sign a one-year lease, with month-to-month extensions after that.

The program will "eliminate some of the uncertainty of foreclosure, keeps families and tenants in their homes during a transitional period, and helps to stabilize neighborhoods and communities," Jay Ryan, a Fannie Mae vice president, said in a statement.

But the effort is likely to affect a relatively small number of homeowners. In the first half of the year, Fannie Mae took back about 1,200 properties through this process, known as a deed-in-lieu of foreclosure. That pales in comparison to the 57,000 foreclosed properties the company repossessed in the period.

While neither option is particularly attractive for the homeowner, a deed-in-lieu does less harm to the borrower's credit record.

The rental program is designed to help homeowners who don't qualify for a loan modification under the Obama administration's plan, but still want to remain in their homes. Fannie Mae is not planning to market the homes for sale during the one-year rental period.

Fannie Mae has hired an outside company, which officials declined to identify, to manage the properties.

To qualify, homeowners have to live in the home as their primary residence and prove that they can afford the market rent, which would be determined by the management company. The rent can't be more than 31 percent of their pretax income.

Fannie Mae's sibling company, Freddie Mac, launched a similar effort in March. That policy, however, requires the foreclosure to be complete and only allows month-to-month leases. A Freddie Mac spokesman declined to say how many borrowers have participated.

(Article from www.Madison.com, written by ALAN ZIBEL, Originally posted on Thursday, November 5, 2009, 9:00 am)

$8,000 First Time Home Buyer Tax Credit Extension!!

Excerpt from the trusted Kiplinger Tax Letter:

"Tax and benefits bills are beginning to move, spurred by Congress' desire to extend expiring breaks and to solve a problem that low inflation has created in 2010 for Social Security and Medicare recipients.

Start with the first time home buyer credit, the $8,000 break that is set to expire Nov. 30.

The credit will be extended for a few months, and lawmakers will clarify that first time purchasers don't have to complete the sale by the expiration date to get the tax credit. They need only sign a contract. The odds are low that Congress will expand the credit to folks who aren't first time home buyers, or increase the credit limit to $15,000."

Stay tuned! We'll hear more about this soon!

WalkScore: Free, Awesome, and Helpful!

Have you heard of WalkScore.com? It's a great tool you can use to find out how "walkable" a neighborhood is. For example, by typing in our office's address I found that we have a WalkScore of 80 out of 100, simply because there are so many key businesses within walking distance of our office! The nearest grocery store and hardware store are only a half-mile away, and the nearest drugstore is only a quarter mile away! Think how valuable this could be for those considering moving to a new or unfamiliar area! Go to http://www.walkscore.com/ to try it out!

Open, Spacious Condo For Sale in Madison, WI!

This cute home is located at 2937 Turbot Dr., Madison, WI. (See it on a map!) For more information or to schedule a private showing of this property contact Nicole directly at (608) 513-0021!

Cute Condo For Sale in Cross Plains, WI!

This sunny condo is located at 2315 Brewery Rd in Cross Plains, WI. (See it on a map!) For more information or to schedule a private showing of this property contact Nicole directly at (608) 513-0021!

Amazing 1890's Victorian For Sale in Evansville, WI!!

This gorgeous home is located at 236 W. Main St. in Evansville, WI. (See it on a map!) For more information or to schedule a private showing of this property contact Nicole directly at (608) 513-0021!

Keller Williams Realty Receives Nod as the Highest Ranked in Customer Satisfaction

J.D. Power and Associates names company highest in customer satisfaction for second year in a row.

AUSTIN, TEXAS (September 2, 2009) —According to the J.D. Power and Associates 2009 Home Buyer/Seller StudySM, Keller Williams Realty, Inc., the third largest real estate company in North America, received the highest overall satisfaction ratings from home buyers among the largest full-service real estate firms for the second year in a row. The company also ranked second-highest among home sellers in the study.

“We couldn’t be prouder. This is an achievement our associates have truly earned. It is the face-to-face interaction and the relationships they build daily that has impacted this study and elevated Keller Williams Realty to another level in customer service,” said Mark Willis, CEO of Keller Williams Realty. “Knowing that this study was conducted during the toughest times the market has seen shows that spirit and dedication can make an impact.”

The study was produced by J.D. Power and Associates to measure home buyers’ and sellers’ customer satisfaction. The results of the home-buying experience were determined by three factors including the agent, office and the package of additional services.

“I am absolutely beaming with pride that our agents have been honored in such a fantastic way,” said Mary Tennant, president and COO of Keller Williams Realty. “We are lucky to be in business with such incredible business people, who have shown incredible resolve over the past two years. If there was a time to build their business, it is now.”

About Keller Williams Realty Inc.:
Founded in 1983, Keller Williams Realty Inc. is the third-largest real estate franchise operation in the United States, with 679 offices and 73,000 associates in the United States and Canada. The company, which began franchising in 1990, has an agent-centric culture that emphasizes access to leading-edge education and promotes an economic model that rewards associates as stakeholders and partners. The company also provides specialized agents in luxury homes and commercial real estate properties. For more information, or to search for homes for sale visit Keller Williams Realty online at http://www.kw.com/.

Daily Show: Even Treasury Secretary Tim Geithner Can't Sell His House

The Daily Show With Jon Stewart	Mon - Thurs 11p / 10c
Home Crisis Investigation
http://www.thedailyshow.com/
Daily Show Full Episodes Political Humor Healthcare Protests

Hilarious.

Buyers Are Gaining Leverage

Dan Miller - Keller Williams Realty 8/19/2009 7:42 am Dane County Real Estate

Two months ago we looked at the percent of Dane County MLS listings under contract (i.e. the percent of listings with an accepted offer).

On June 20th, 22% of all single family home listings had an accepted offer. In other words for every one single family home listing under contract, another 3.5 listings were working for an accepted offer. As of August 18th, the percent of homes under contract dipped to 17%. For every home under contract, another 5 listings were working for an accepted offer. You'll see from the chart below the percent of homes under contract has dipped for most price categories. Homes priced under $225,000 tend to have a greater percentage of listings under contract.

The numbers demonstrate the seasonality of the market and make it clear buyers are gaining leverage as we enter the fall season. We're seeing a lot of price reductions from sellers right now. In many cases, those sellers would have been wise to lower their prices earlier this spring or summer, when more buyers were out in the market.

(Article and graph from http://www.madison.com/)

New home sales: 'Really good news'

Sales of newly constructed single family homes rose 11% over May, but median price fell 3%.

By Les Christie, CNNMoney.com staff writer
Last Updated: July 27, 2009: 12:14 PM ET

NEW YORK (CNNMoney.com) -- Sales of newly constructed single-family homes spiked 11% in June to an annualized rate of 384,000 homes, according to a report released Monday.

The gain over May was much greater than expected. A consensus of housing industry analysts had forecast seasonally adjusted sales of 352,000, according to Breifing.com.

However, sales are still 21% below the levels of a year ago, when new homes sold in June at an annualized rate of 488,000, according to the report released by the U.S. Department of Housing and Urban Development. Four years ago, during the height of the housing boom, the sales rate for June was 1,374,000, nearly three-and-a-half times higher than last month.

Still, the report was very positive, according to Peter Morici, an economics professor at the University of Maryland who had forecast June sales to be at the 350,000 level. "That is really good news. Considering what's going on in existing home sales, with all the foreclosure activity sending down home prices, for new homes to jump like that is a good indicator that the economy is bottoming out."

Builders have been more optimistic about market conditions and this report should further buoy their spirits. An index of builder confidence from the National Association of Home Builders (NAHB) rose to 17 this month after languishing in single-digit territory.

In June, they began building single-family housing units at an annualized rate of 470,000, a 14.4% jump over May.

Pat Newport, a housing industry analyst for IHS Global Insight, also deemed the report very good news -- but is uncertain how Obama's $8,000 tax credit for first-time homebuyers will affect the longer view.

"I only wonder how much of the increase is coming from rising demand from new homebuyers," he said. "The tax credit is boosting demand, but what will happen when it goes away in December?"

Prices and inventory
The median price paid for a house sold in June 2009 was down about 3% to $206,200; the mean price was $276,900.

By the end of the month, the inventory of new homes had dropped to 281,000, an 8.8 month supply at current rates of sale. Last month, there were enough homes on the market to last 10.2 months at that rate.

"They have to clean out that stock to get building again," said Morici.

"Normal" new home inventory is about 300,000, according to Newport, which we're already below. But ,he added, that the median time to sell a home is at an all-time high of 11.8 months.

"That tells you it's still very hard to sell a new home," he said.

Much of that struggle is because the housing stock is concentrated in exurbs -- otherwise known as McMansions far away from work. "Inventories are misaligned," said Morici, who likened the situation to the auto industry being overstocked with large trucks and SUVs instead of fuel efficient cars.

"There'll be a shift from far-out to closer-in and from bigger to smaller," he said. But builders will have a hard time selling those "white elephants" and they'll languish on the market, he predicted.

The excess inventory also tend to be concentrated in just a few markets, such as California, southern Florida, Las Vegas and Arizona, according to Bernard Markstein, a senior vice president and economist with the National Association of Home Builders.

"[In most other parts of the country] inventory has been worked down to the point where if you want to buy a new home, it will probably have to be built," he said.

Perhaps the best news is that home construction may be ready to once again boost the economy again. "The construction-put-in-place numbers that come out next month will show that housing is starting to add to the GDP," said Newport. "It's been nothing but a drag on growth lately."

With new home inventory more in balance, consumers may no longer be able to wring extras, such as high-end appliances and even swimming pools, out of builders. "People are going to find builders are not going to be quick to make concessions," Markstein said. "The time for getting deals is going away."

(Article from http://www.cnnmoney.com/)

Bill Gates Buys Historic Wyoming Ranch

Bill Gates, the world’s richest man, has reportedly purchased Irma Lake Lodge, a famous Wyoming ranch once owned by William “Buffalo Bill” Cody, who may have been one of the earliest successful entrepreneurs. After serving in the U.S. Army, Cody was hired to hunt bison and scout Indians and then he started his famous “Buffalo Bill’s Wild West” show where Annie Oakley and Sitting Bull performed among other notable characters of the Old West.

Cody established Irma Lake Lodge as his own personal hunting retreat. It is a 492-acre property named after Cody’s youngest daughter, Irma, and is located about 20 miles outside of Cody, WY. The lodge is virtually secluded and surrounded by wilderness and forest lands since it sits next to Shoshone National Forest and nearby Washakie Wilderness. It is approximately 50 miles from Yellowstone National Park.

The final purchase price is unknown at this time, although it was originally listed at $12 million several years ago and has received several price cuts — coming all the way down to a listing price of $8.9 million before Gates bought the ranch.

Only two people have owned the ranch since Cody: the William R. Coe family, who purchased it from Cody in 1911 and owned it for 75 years, and then Minnesota’s Roger Hollander. And now, another famous Bill takes over.

(Article by Diane Tuman from www.zillow.com)