Attention Dallas County: This is how it's done.

Ask me about mortgage fraud. Go ahead. I dare you. I can tell you stories that will curl you hair.

Anyway, kudos to Collin County for sending a clear message of STAY AWAY for the past few years to perpetrators of mortgage fraud. Dallas County, you have a lot to learn, and I know you have the knowledge to do it. After all, the current Dallas County DA happens to be a former mortgage broker with title company experience to boot.

Over two years ago, investigative reporter Becky Oliver from FOX4 news asked Dallas County DA, Craig Watkins, what his office plans to do about mortgage fraud. His answer? “We don’t have the prosecutors that can go forth and prosecute these cases because we don’t have the resources.”

When asked what message his office is sending by not prosecuting mortgage fraud cases. Watkins replied, “…the criminals are running the show.”

On the other hand, here is what Collin County is doing:

12:00 AM CDT on Sunday, August 30, 2009
By ED HOUSEWRIGHT / The Dallas Morning News (Excerpts)

Chris Milner, a former federal prosecutor, heads the Collin County district attorney's effort to crack down on mortgage fraud.

"I could keep just about the entire office busy with mortgage fraud," he said. District Attorney John Roach began investigating mortgage fraud in 2005 and has four prosecutors assigned to it and other white-collar crimes. His office has held training seminars on mortgage fraud for law enforcement agencies throughout the region.

"I think we'll be prosecuting mortgage fraud forever," Milner said.

Read the full text of today's Dallas Morning News article here.

Another Study Shows Dallas Prices Stabilizing

It's so refreshing to have multiple recent studies showing that the Dallas housing market is steadying that I just can't help sharing them as they're published.

The good news: Home sellers in several cities (with Dallas being at the top of the list) are pricing aggressively, and forgo the need for price reductions. I can attest to this. Appropriately priced homes, particularly in East and North Dallas, that are well maintained and updated are frequently under contract within a day or two of listing at prices very near and sometimes even above list price. Multiple offer situations are not uncommon these days.

The bad news: The study shows that 25% of homes on the market have experienced at least one price cut. These sellers continue to ignore market conditions and overprice their homes.

Now, more than ever, it's crucial to rely on your REALTOR's advice when pricing your home! Today's sellers need to price aggressively to avoid reductions. Buyers are looking for value and, when they find a good deal, they jump on it.

Cities showing signs of recovery with significant declines in percentage of listing with price reduction from June 2009 to August 2009 include:
-Dallas, TX – 42% fewer price reductions
-Las Vegas, NV – 33% fewer price reductions
-Louisville, KY – 33% fewer price reductions
-Los Angeles, CA – 19% fewer price reductions
-Washington D.C. – 17% fewer price reductions

For more information, visit www.trulia.com.

Things Aren't As Bad As They Were... And That's Good!

Data through June 2009, released today by Standard & Poor's for its S&P/Case-Shiller Home Price Indices, the leading measure of U.S. home prices, show that the U.S. National Home Price Index improved in the second quarter of 2009.

"For the second month in a row, we're seeing some positive signs," says David M. Blitzer, Chairman of the Index Committee at Standard & Poor's. "The U.S. National Composite rose in the 2nd quarter compared to the 1st quarter of 2009. This is the first time we have seen a positive quarter-over-quarter print in three years.... As seen in both seasonally adjusted and unadjusted data, there are hints of an upward turn from a bottom."

As of the 2nd quarter of 2009, average home prices across the United States are at similar levels to what they were in early 2003. From the peak in the second quarter of 2006, average home prices are down 30.2%.

More upbeat news is seen in the monthly data across other markets; Dallas and Denver have reported four consecutive months of positive returns.

Ed. Note: Based on the table below, it appears that Dallas home prices performed the "best" of the major metropolitan areas studied. Things still aren't great, but Dallas properties are definitely holding their values better than other areas.

The table below summarizes the results for June 2009. The S&P/Case-Shiller Home Price Indices are revised for the 24 prior months, based on the receipt of additional source data. More than 22 years of history for these data series is available, and can be accessed in full by going to www.homeprice.standardandpoors.com.

Level Change (%) Change (%) Change (%)
U.S. National Index 132.64 2.9% -7.4% -14.9%
June 2009 June/May May/April 1-Year
Metropolitan Level Change (%) Change (%) Change (%)
Area
Atlanta 107.52 1.5% 0.5% -13.7%
Boston 152.71 2.6% 1.6% -5.9%
Charlotte 120.66 0.7% 0.9% -9.6%
Chicago 124.99 1.1% 1.1% -16.7%
Cleveland 106.38 4.2% 4.1% -3.0%
Dallas 119.68 2.7% 1.9% -2.2%
Denver 126.92 2.5% 1.3% -3.6%
Detroit 69.49 -0.8% 0.2% -25.0%
Las Vegas 107.31 -2.0% -2.6% -32.4%
Los Angeles 160.90 1.1% -0.1% -17.8%
Miami 145.37 0.5% -0.8% -23.4%
Minneapolis 113.48 3.1% 1.1% -19.8%
New York 171.49 0.4% 0.2% -11.9%
Phoenix 104.73 1.1% -0.9% -31.6%
Portland 148.47 1.0% 0.1% -15.2%
San Diego 147.31 1.6% 0.4% -16.0%
San Francisco 124.70 3.8% 1.4% -22.0%
Seattle 149.53 0.4% -0.3% -16.1%
Tampa 140.90 0.4% 0.0% -19.5%
Washington 174.32 2.8% 1.3% -11.8%
Composite-10 153.20 1.4% 0.5% -15.1%
Composite-20 141.86 1.4% 0.5% -15.4%
Source: Standard & Poor's and Fiserv

Act Now to Get a Foreclosure Deal

A study released today indicates that bargains on foreclosed properties are becoming few and far between. I can attest to this locally, as many properties are being snapped up at blinding speed--sometimes before my clients have a chance to look at them--by first-time buyers looking to cash in on very low interest rates before the December 1 deadline for the $8,000 tax credit deadline.

The high foreclosure rate during last two years caused an abundance of properties to flood the market. Prices on real estate dropped as the number of available homes kept growing. An analysis conducted by ForeclosureDataOnline.com using their database of foreclosures has found that situation is changing. Prices are rising and homes are being purchased more quickly than in recent months.

According to the analysis, the sell price for foreclosed property in many states has increased significantly in just the last month, from 3% to more than 13%.

In addition to the price increases, the database also suggests many homes are not staying on the market as long. While REO (Real Estate Owned) properties were once sitting empty on the market for months after ending up back in the hands of lenders, now they are sometimes selling in less than 24 hours.

The increased demand for these properties is driving up prices while the supply is also dwindling thanks in large part to the fed's program to slow the foreclosure rates. However, the foreclosure moratoriums that saved many homes will be lapsing in the very near future and will probably lead to a new batch of fresh foreclosure properties on the market. Just in case, investors and home buyers looking to secure a bargain need to act fast before the deals are gone.

Freddie Mac is offering a special through October 30, where they will pay up to 3.5% of the buyer's closing costs AND a 2-year home warranty in an effort to clear their inventory of foreclosures. HUD is offering a $100 down payment option for list price offers on their foreclosures if FHA financing is used. If you would like more information on either of these foreclosure incentives (for owner-occupied buyers), contact me!

2009 School Ratings

2009 District Accountability Ratings for Texas schools are out. Congratulations especially to JJ Pearce High School--my daughter's school--and its feeder elementaries for earning the highest rating of Exemplary. Great job students, teachers, and administration! It's a boost for home values to be in a neighborhood surrounded by exemplary schools.

Please email me if you would like a copy of the complete list of Dallas County schools, I'll happily forward it to you in PDF format that my good friends at Republic Title assembled.

Tax Free Weekend Starts Now!

It's been a few years (ahem) since I was in school, but back-to-school time is still exciting! Anyone who knows me KNOWS that I love the scent of pencil shavings more than freshly baked cookies. I have a real weakness for school supplies. New school supplies = new beginning.

That's why Tax-Free Weekend is big news! Today (8/21) through Sunday (8/23) retailers throughout Texas will not charge sales tax on clothes, footwear, backpacks and other school supplies priced under $100. For a complete list of qualifying items, click here:

http://www.risd.org/SchoolTimesNOW/073009/TAX%20FREE%20DAY%20-%2009.pdf

Anything is possible when you have a new pencil...Happy Shopping!

Lights, Camera, Action--Stage Time!

While at work, you probably dress differently than if you were, say, spending a lazy Sunday afternoon at home or a night on the town. If you work in a corporate environment, you most likely dress to project a certain image--clean, well-groomed, appropriately accessorized and looking your best. Of course, this doesn't mean you can't incorporate your personal style.


Think of that analogy when preparing your home for sale. You are dressing your home for work! You want prospective buyers to see your property at its best and project an image of a lovely, well maintained home that will appeal to the greatest number of buyers and offend no one. It's not necessary to completely redecorate, but there are certain things that are a must to attract buyers.


The four basic rules are:


CLEAN: Your home must sparkle, whether you do it yourself or hire professionals. No exceptions! Even if your home is the best buy on the block, buyers will be turned off by your dirty dishes, laundry, and the lingering aroma of last night's boiled cabbage.


REPAIR: You must fix those "little things" that you planned to get around to later. Buyers will notice stained carpets, a door that sticks, dripping faucets, etc., and they will perceive even the smallest item as indication of an entire home that has not been well maintained. Even if the buyer doesn't notice something, a home inspector will.


DECLUTTER: Buyers must be able to see your home and imagine themselves living there. Toys, papers, holiday decorations, etc., should be tossed, put away, or placed in temporary storage.


DE-PERSONALIZE: Make your home neutral so buyers can imagine where they would display their own things. Political or religious items are certain to turn off whole groups of buyers. Personal collections, family photos, and other memorabilia should be put away. A properly staged home will look almost like a hotel lobby or model home: well appointed but impersonal.

Dress your home for success!


Kristine Baugh, Accredited Home Stager