Arbor Pass

The Perfect Amount Of Snow

2012-01-18T14:34:00.000-08:00

If you know me, you know that I don't really like snow. One major reason is that I won't drive in it which makes me crazy because I can't get to work. Lately we have had some snow that looks beautiful and does a light dusting. This is a picture of my son playing in the snow at his grandparents in Scappoose. The grandparents saw much more snow than we did. Hope you enjoyed it while it lasted.

Clear Capital predicts gains in Portland-area home prices

2012-01-09T16:47:00.000-08:00

Home prices fell 3.5 percent in 2011, but are expected to reverse course in 2012.

Portland-area home values fell 3.5 percent percent during 2011 but are expected to stabilize and even post an increase in 2012, the real estate research firm Clear Capital reports.

The California company forecasts a 1.9 percent increase in home values in the Portland-Vancouver-Beaverton area.

In the company's ranking of 50 major metro areas' home prices, that moves Portland from No. 27 in 2011 to No. 14 in 2012. Exactly half of the markets are expected to post home price increases. The Portland market is also among 20 considered to be stable in 2012, with a predicted increase or decrease of less than 2.5 percent.

The company also reported 15.5 percent of home sales in 2011 were bank-owned foreclosures.

U.S. home prices fell 2.1 percent in 2011 and are expected to gain 0.2 percent in 2012, the firm reports.

The Seattle area was one of the hardest-hit markets in 2011, posting a 15.1 percent decline in prices. Clear Capital predicted the city would lose another 7.5 percent in 2012.

Published: Monday, January 09, 2012, 11:42 AM Updated: Monday, January 09, 2012, 12:36 PM

By Elliot Njus, The Oregonian

Two Happy Homeowners

2012-01-07T10:40:00.000-08:00

Jose and Melissa signing for their new home

This is Jose and Melissa. They are the newest homeowners here at Arbor Pass. We are so excited for them, they are such a delight!

Congrats Jose and Melissa on your new home.

Back From Christmas Vacation

2011-12-26T12:53:00.000-08:00

Housing sector could be recovering, Washington Post says

2011-12-21T10:13:00.001-08:00

The housing sector seems to have finally bottomed, and may even be rebounding, according to The Washington Post, which cited data released over the past several weeks. "Housing has switched from being a drag on overall growth, to modest positive contributions,” the newspaper quotes Brian Bethune, chief economist of Alpha Macroeconomic Foresights. as saying.

Theflyonthewall.com

Merry Christmas From The Korenthal Family

2011-12-17T10:40:00.000-08:00

The Korenthal Family Shopping At The Mall

I wanted to wish everyone a very Merry Christmas from my family to yours!

Model For Sale

2011-12-13T12:44:00.001-08:00

Support Your Local Tree Farm

2011-12-06T14:13:00.000-08:00

Building 21 Underway

2011-11-19T13:05:00.000-08:00

Building 21 just started and will be ready for moving in, in June

New Winter Hours Starting November 6th

2011-11-02T16:46:00.000-07:00

Fall Is In The Air

2011-11-01T13:56:00.000-07:00

I think my feminine side came out when I decorated the office. I love fall, probably because growing up in California, the leaves were only 2 colors, green and brown. I am so looking forward to Thanksgiving. Come on in and check out how my decorating looks.

Intel's quarterly outlook beats Street

2011-10-18T14:57:00.000-07:00

(Reuters) - Intel Corp forecast quarterly revenue above Wall Street's expectations, defying concerns that the growing popularity of tablets and a shaky economy are eating into demand for personal computers.

Intel said revenue in the current quarter would be $14.7 billion, plus or minus $500 million. Analysts on average had expected current-quarter revenue of $14.23 billion, according to Thomson Reuters I/B/E/S.

Intel's processors are used in 80 percent of the world's PCs but the company has failed to gain traction in mobile gadgets like Apple Inc's iPad and Google Inc's Android smartphones. It also increasingly depends on China and other emerging markets to make up for weak sales in the United States and Europe.

GAAP net income in the third quarter was $3.5 billion, up 17 percent. Earnings per share were 65 cents.

The world's leading chipmaker said non-GAAP revenue in the third quarter was $14.3 billion, up 29 percent and higher than the $13.87 billion expected on average by analysts, according to Thomson Reuters I/B/E/S.

Shares of Intel rose 2.6 percent in extended trade after closing up 0.52 percent at $23.40.

(This story corrects GAAP vs Non-GAAP in the fourth paragraph.)

(Reporting by Noel Randewich; Editing by Richard Chang)

Fall 2011 Move-in Ready Package

2011-10-15T10:18:00.000-07:00

Purchase a home by 10.31.11

and we’ll add our move-in ready package for FREE*

•Stainless Steel Refrigerator

•Washer & Dryer

•Blinds

*With full price offer. See the site agent for specific details as products may vary between neighborhoods and are subject to availability.

Living in Oregon…According to Jeff Foxworthy

2011-10-11T15:21:00.001-07:00

THIS IS WHAT JEFF FOXWORTHY HAS TO SAY ABOUT ‘LIVING IN OREGON’…

•If someone in a Home Depot store offers you assistance and they don’t work there, you live in Oregon.

•If you’ve worn shorts, sandals and a parka at the same time, you live in Oregon.

•If you’ve had a lengthy telephone conversation with someone who dialed the wrong number, you live in Oregon.

•If you measure distance in hours, you live in Oregon.

•If you know several people who have hit a deer more than once, you live in Oregon.

•If you have switched from ‘heat’ to ‘A/C’ and back again in the same day, you live in Oregon.

•If you install security lights on your house and garage but leave both doors unlocked, you live in Oregon.

•If you can drive 75 mph through 2 feet of snow during a raging blizzard without flinching, you live in Central, Southern or Eastern Oregon.

•If you design your kid’s Halloween costume to fit over a 2 layers of clothes or under a raincoat, you live in Oregon.

•If driving is better in the winter because the potholes are filled with snow and ice, you live in Oregon.

•If you know all 4 seasons: almost winter, winter, still winter, and road construction, you live in Oregon.

•If you feel guilty throwing aluminum cans or paper in the trash, you live in Oregon.

•If you know more than 10 ways to order coffee, you live in Oregon.

•If you know more people who own boats than air conditioners, you live in Oregon.

•If you stand on a deserted corner in the rain waiting for the “Walk” signal, you live in Oregon.

•If you consider that if it has no snow or has not recently erupted, it is not a real mountain, you live in Oregon.

•If you can taste the difference between Starbucks, Seattle’s Best, and Dutch Bros, you live in Oregon.

•If you know the difference between Chinook, Coho and Sockeye salmon, you live in Oregon.

•If you know how to pronounce Sequim, Puyallup, Clatskanie, Issaquah, Oregon, Umpqua, Yakima and Willamette, you live in Oregon.

•If you consider swimming an indoor sport, you live in Oregon.

•If you know that Boring is a city and not just a feeling, you live in Oregon.

•If you can tell the difference between Japanese, Chinese and Thai food, you live in Oregon.

•If you never go camping without waterproof matches and a poncho, you live in Oregon.

•If you have actually used your mountain bike on a mountain, you live in Oregon.

•If you think people who use umbrellas are either wimps or tourists, you live in Oregon.

•If you buy new sunglasses every year, because you cannot find the old ones after such a long time, you live in Oregon.

•If you actually understand these jokes and forward them to all your OREGON friends, you live or have lived in Oregon.

Back From Vacation

2011-10-09T13:21:00.000-07:00

My Brother And Me At The Top Of Our Climb

Even with how busy it has been here at Arbor Pass, I needed to spend some time visiting my family in California. My mom is sick and really felt lead to see her. So my brother paid for my plane ticket to California, where I am originally from. My payment back to my brother was a 30 mile bike ride with 15 miles of it up hill. My brother lost his left leg in a car accident when he was in high school. He now loves to cycle not letting his disability slow him down at all.

Well, I am back and ready to work.

Last Home at Arbor Crossing is Sold!

2011-10-09T13:15:00.000-07:00

Last Home At Arbor Crossing

2011-10-01T17:14:00.000-07:00

Last Home at Arbor Crossing!

$154,900

716 NW Newstead Terrace: Windsor Classic Package, stainless steel Whirlpool appliances with gas range, wood laminate floors on entire main level, walnut cabinets with bronze knobs, granite counter tops with full height diagonal tile backsplash, Hunter Douglas blinds, corner unit with tall ceilings & lots of light & attached garage.

Pumpkin Time

2011-09-19T14:36:00.000-07:00

Do you believe that fall is just around the corner? Now this is my wife's favorite time. She loves the leaves turning, getting costumes and candy for the kids. We always make it to a pumpkin patch. Below is a list of places where you can get your pumpkin.

■Bella Organic Portland Pumpkin Farm, September 3-October 31, NW Portland

■Fazio Farms, dates TBD, NE Portland

■The Flower Farmer, September 24-October 31, Canby

■Kruger’s Farm, September 23-October 31, Sauvie Island

■Lake View Farms, North Plains

■Lee Farms Pumpkin Patch, Tualatin

■Liepold Farms Harvest Festival, October 1-31, Boring

■Philip Foster Farm Cider Squeeze, September 24, Eagle Creek

■Plumper Pumpkin Patch, September 17-October 31, NW Portland

■The Pumpkin Patch, September-October 31, Sauvie Island

■Roloff Farms, October 1-30, Hillsboro

■Smith Berry Barn Apple Festival, October 15-16, Hillsboro

■Squishing of the Squash & Howloween, October 28-30, Oregon Zoo (Portland)

■West Coast Giant Pumpkin Regatta, October 22, Tualatin

10 Years

2011-09-10T17:15:00.000-07:00

Where were you on 9/11 10 yeas ago? I was getting ready for work when I heard the news from my mom. I turned on the TV and couldn't believe what had happen. My work (in California) was in a building that had Stanley Morgan Dean Witter as its main tenant. When I got to work they told me the devastation. Their company occupied an entire floor of one of the buildings of the Twin Towers. Fortunately the floor was under remodeling and most of their colleagues were not there.

I remember thinking, how can a human drive a plane into a building. How can a city deal with so much tragedy? What will this do to our country, make it stronger or divide us more?

You see my wife and I planned a trip to NY months before 9/11. We thought about canceling the trip. I called NY's box office where we ordered our tickets for a Broadway play. I asked them if I should cancel the tickets, she said "NO!" That would only hurt their local economy more. So we ventured out.

With a heavy heart we boarded the plane to New York. It was strange, flying for the 1st time since the attacks. Security was crazy about checking every bag and every person. I thought about the people that were on all 4 planes the terrorists high jacked. What went through the passengers minds, especially flight 93 who knew what was going on with the Twin Towers? I imagined me on that fateful flight calling my wife telling her I would not be home for dinner. When we finally got to New York City, we could smell the awful smell of the buildings still smoldering. The streets were wet to keep down the dust of the dump trucks hauling debris. New York City is known for its rudeness, not when we were there. They welcomed us with open arms. God Bless America was every where. You could see sheets saying things like, "I Love NY, City Of Heroes."

Probably the most shocking thing I saw was the dump trucks lined up. One had the words: Air Craft Parts Only. Something that should never be part of a building. It was an experience that will forever stay in my mind.

I love the slogan, "9/11, Never Forget." That is exactly what we should never do, forget!

Big Boy

2011-09-06T14:22:00.000-07:00

Here is a picture of my son on his very 1st day of school. Arbor Custom Homes was so nice to let me take the morning off to walk my son to school. I am so proud of him.

Conversion Is Done

2011-09-05T12:37:00.000-07:00

Before

After

Our office has been converted into 4 nice garages. Although not quite as pleasing to the eyes, much more practical. We even have 2 of our brand new homeowners living in their new homes. Congrats!

Street Of Dream Home Is Sold!

2011-08-27T10:05:00.001-07:00

Bon Voyage to our 2011 NW Natural Street of Dreams home, Chateau Marseille – SOLD today!!!!

Congratulations to the lucky new home owners!!

7 Deadly Sins Of Overpricing

2011-08-16T14:01:00.000-07:00

Most experts would advise that the best way to increase your
odds of a successful sale is to price your home at fair market

value. But, as logical as this advice sounds, for many sellers it is

still tempting to tack a few percentage points onto the price to

"leave room to negotiate". To avoid this temptation, let's take a

look at the seven deadly sins of overpricing:

1. Appraisal Problems

Even if you do find a buyer willing to pay an inflated price, the fact

is over 90% of buyers use some kind of financing to pay for their

home purchase. If your home won't appraise for the purchase

price the sale will likely fail.

7 Deadly Sins of Overpricing

2. No Showings

Today's sophisticated home buyers are well educated about the real estate market. If your home is overpriced they

won't bother looking at it, let alone make you an offer.

3. Branding Problems

When a new listing hits the market, every agent quickly checks the property out to see if it's a good fit for their

clients. If your home is branded as "overpriced", reigniting interest may take drastic measures.

4. Selling the Competition

Overpricing helps your competition. How? You make their lower prices seem like bargains. Nothing is worse than

watching your neighbors put up a sold sign.

5. Stagnation

The longer your home sits on the market, the more likely it is to become stigmatized or stale. Have you ever seen a

property that seems to be perpetually for sale? Do you ever wonder - What's wrong with that house?

6. Tougher Negotiations

Buyers who do view your home may negotiate harder because the home has been on the market for a longer

period of time and because it is overpriced compared to the competition.

7. Lost Opportunities

You will lose a percentage of buyers who are outside of your price point. These are buyers who are looking in the

price range that the home will eventually sell for but don't see the home because the price is above their pre-set

budget.

Most buyers look at 10-15 homes before making a buying decision. Because of this, setting a competitive price

relative to the competition is an essential component to a successful marketing

Street of Dreams Update

2011-07-28T01:45:00.000-07:00

Beautiful Days At Arbor Pass

2011-07-27T14:33:00.000-07:00

Destruction Begins Of The Old Sales Office

2011-07-27T13:40:00.000-07:00

NW Natural Street Of Dreams

2011-07-19T17:18:00.000-07:00

Sales Office Moving

2011-07-17T11:17:00.000-07:00

Two things that I observed today. One, rain and two the sales office is being demolished. I can't believe that it is the middle of July and it is raining like it is March. I also can't believe that we are demolishing our sales office and converting it to garages.

With the change of interior features and changes in floorplans, it is time to say goodbye to our old models. I say old models, because we have brand new models that will be up and running in 2 weeks. I am excited for how smart they are laid out. So, come by and see the progress of the garage conversion and check out the new models.

Oh, I almost forgot, although we have 2 models sold, we still have 4 available. Now is the chance to buy an Arbor Model.

Oregon College Football Schedule

2011-07-06T15:24:00.001-07:00

I Am Back

2011-06-25T15:29:00.000-07:00

For those of you that don't know me, my name is Christopher Korenthal and I am the new Community Manager for Arbor Pass. Just over a year ago I was at Arbor Pass, but went to start another neighborhood. Now that the new neighborhood that I started is up and running, I am back to serve you here at Arbor Pass. I look forward to seeing you here, so please stop by!

Red Means Stop for Right Turns Too

2011-02-17T15:08:00.000-08:00

Effective February 11, 2011, illegal right turns on red (such as rolling stops) will be added to the other red light traffic violations enforced at Photo Red Light intersections. Drivers who do not come to a complete stop at a red light before turning right will now be issued a citation when their violation is caught on camera at a Photo Red Light intersection. The Photo Light Intersections will include: Beaverton Hillsdale Highway/Griffith Drive, Hall Blvd/Scholls Ferry Road, Cedar Hills Blvd/walker Rd, and Allen Blvd/Lombard Ave. Keeping the citizens safe on roadways is a high priority for the Police Department. The goal of the Department's Photo Red Light Enforcement Program is to reduce violations, crashes and injuries. The department will now enforce right turn on red traffic violations at the intersections above mentioned. I was not sure how advertised this information was, so I thought it would be important for our Arbor Custom Home families to be aware of the new laws. It is still legal to make a right turn on a red signal once you have come to a complete stop at the stop line. So slow down and make sure to come to a complete stop.

What is an FHA Loan?

2011-02-04T13:51:00.000-08:00

An FHA loan, is an Federal Housing Administration mortgage insurance backed mortgage loan which are provided by FHA-approved lenders. FHA insured loans are a type of federal assistance and have historically allowed lower income buyers to borrow money for the purchase of a home that they would not otherwise be able to afford. to obtain mortgage insurance from the Federal Housing Administration, a mortgage insurance premium (MIP) equal to a percentage of the loan amount at closing is required, and is normally financed by the lender and paid to FHA on the borrowers behalf. Depending on the loan to value ratio, there may be a monthly premium as well. Come in to Arbor Pass this weekend, and make an appointment to speak to Adam, our finance expert from Wells Fargo, to see if this would be a good fit for you? We are here Monday-Friday 12-5pm and 10-5pm Saturday and Sunday.

2011-01-26T13:20:00.000-08:00

PLANET HOME: Conscious Choices for Cleaning & Greening the World You Care About the Most
events - public events
When: Wednesday, January 26th 2011 10:30 am – 12 pm
Where: The Warehouse, 3434 SE Milwaukie Ave, Portland, OR 97202
PLANET HOME: Conscious Choices for Cleaning & Greening the World You Care About the Most
Alexandra Zissu, author of PLANET HOME, will be in Portland for this FREE special event to talk about ways to make conscious choices when cleaning your most cherished environment -- your home. All Portlanders are invited to join us for a chance to connect with your community and Alexandra for this informative and fun event. Enjoy complimentary food and beverages and an eco-friendly gift will be available for registered attendees. Please register as soon as possible using this link: http://planethomepdx.eventbrite.com/ Author and green living expert Alexandra Zissu offers comprehensive yet simple - and practical - green tips for any budget. Our everyday choices can have a tremendous impact - on the environment and our health. Did you know switching from hot to cold water when doing laundry saves 90% of the total energy cost, reduces indoor air pollution and is better for the clothes? Zissu suggests many easy changes and highlights common mistakes we all make. Newbies will learn to go greener faster and devotees will pick up insights and ideas to hone their eco-approach. Walk out inspired, empowered and with a heightened sense of how interconnected we all are in our shared planet home.Alexandra Zissu is a green living expert, environmental health journalist, eco consultant, speaker, mom and the author of The Conscious Kitchen and co-author of The Complete Organic Pregnancy and Planet Home.
REGISTER AT http://planethomepdx.eventbrite.com/
The Warehouse is located at 3434 SE Milwaukie Avenue, Portland, OR 97202.More info at http://www.portlandgreenparenting.com/

The Models are FOR SALE.....

2011-01-21T15:06:00.000-08:00

We are so excited, our models are moving. We have started construction on two new buildings here at the Pass. We have 8 new condo's that are available in the new buildings. The buildings are in great locations and right by the pool and clubhouse. This is a great time to buy an Arbor Custom Home at Arbor Pass. The units are early enough in the construction stage, that you can pick out your options. The other exciting news is that we are moving our models to one of the new buildings. That means that the models are for sale. Whenever people come through, they always want to pick the same features that the model offers. Well here is your chance. Come in this weekend and view the models and see which one you like???? It is a great time to buy an Arbor Custom Home. The interest rates are still very low, and so are the price of our condos. I hope to see you this weekend, and Adam from Wells Fargo Home Mortgage, Arbor's preferred lender, would love to make an appointment to meet with you to see which plan would be a good fit. Don't forget about the Oregon Bond, Adam would be happy to see if you qualify for that. Happy home hunting.

NEW YEARS INCENTIVE FOR FIRST TIME HOME BUYERS!!!

2011-01-13T15:02:00.000-08:00

Good news for first time home buyers. Oregon Bond has been able to approve funds to bring back its offering for 1st time home buyers. there are two options that buyers can take advantage of. The first one is Rate Advantage Home Loan: A qualified borrower will get the lowest fixed rate possible to maximize their home purchasing power. Rates, on this option are 3.875%. the second option is the Cash Advantage Home Loan: A borrower will get a low, fixed interest rate of their home loan along with cash assistance equal to 3% of their loan amount. The cash assistance will help to reduce the total cash they need to close the loan. Rates, on this option, are 4.25%. The buyer must meet certain qualifications, which are as follows: Buyer must be a 1st time home buyer, be an Oregonian, live in the residence, may not have been discharged from a bankruptcy within the past two years, prior to closing the loan. There are also income limits, as well as purchase price limits. There are eligible property restrictions. There may also be a recapture fee, if the buyer sell the house before a certain required time frame. This is just a jist of what the program restrictions are. Please come by Arbor Pass, and meet with either Krisiti, the managing agent at our site, or our preferred lender Wells Fargo, to get specific information regarding this exciting new First Time Home Buyers incentive. Great time to buy an Arbor Home....

What is the impact of raising interest rates when buying a home?

2011-01-07T14:52:00.000-08:00

Buyers ask me daily, "have we hit bottom, as far as the price of homes?" I am not sure the answer to that, however I do know that the interest rate increase affects the buyer just as much as the price of a home. If you are one of those buyers that is waiting to see if we have hit bottom, be careful. You should be concerned about the monthly cost as well as the price. We all want the best value possible whenever you purchase something. However, when buying real estate, the best value is not determined by price alone. Value is determined by price and financing costs. You really need to take both into consideration when purchasing a home. Arbor Custom homes is partnered up with Wells Fargo Home Mortgage, and have an amazing team that keeps updated on all that is happening in lending. If you want to find out how the interest rates affect your decision come into the Arbor Pass sales office, and we can set up an appointment with our lender, Adam and show you options for your future home.

Time for Reflection!!!!

2010-12-23T13:10:00.000-08:00

As 2010 comes to an end, it is always a good time to reflect. This year has been a very exciting, but challenging year for me professionally. It has been so wonderful coming to work for Arbor Custom Homes. I feel so fortunate, in this economy, to have had such an exciting opportunity. I love it!!!! I really enjoy the people I get to work with. Kristi, the sales office manager is awesome to work with. She loves being the property manager at Arbor Pass, and is so enthused to teach me everything she knows about the condo's. We have had such fun working with buyers and meeting potential buyers. The real estate market has been challenging, but the Arbor team works so well together to make our buyers excited about the buying process. I hope that 2012 brings peace, joy and health and happiness. Merry Christmas, and a Happy New Year.

Interested Rates have been going up. What are you waiting for?????

2010-12-16T16:19:00.000-08:00

Interest rates are heading north for the holidays.......The interest rates have gone up about .5% this month. Its hard to say if they will come back down, or if we have hit our rock bottom? Do you realize how much this affects a buyer when the rates increase? With the rate increase just .5% this month, that has been a 5% loss in buying power. That means if you were qualified to buy a $200,00 home, you could now only afford a $190,000 home. So that means the buyer will be making the same mortgage payment on a home that is $10,000 less. The good new is that even with the rates increasing, they are still at record lows. In tracking rates over the last five Decembers, we are still the lowest that we have seen. In 2005 the rates were 6.27. So what are buyers waiting for? I think if you are ready to buy a home and waiting to see "what happens" you may miss the boat????? If you are serious about purchasing something you should speak with a lender as soon as possible to see what your options are? Arbor Pass is partnered up with Wells Fargo Home Mortgage, and I work personally with Adam Ansteth. He knows the neighborhood at Arbor Pass and he has proven time and again how good he is at his job. Even thought we are at the last few weeks of the year, this is a GREAT time to buys a new home. What a way to start 2011. Happy Holidays and Cheers to you.

Arbor Custom homes Oregonian Article

2010-12-09T16:18:00.000-08:00

There was an interesting article in the Oregonian last week about Arbor Custom Homes. The article had an encouraging message from one of our owners Wally Remmers. He was speaking at a banquet to subcontractors and suppliers of Arbor's. Wally is confident of a continued rebound in the year ahead. It was exciting to see that Arbor Custom Homes is going to be building around 350 new homes in the coming year. He admits that times have been very challenging as one of the last standing local builders in the Portland area. Arbor has taken some opportunities that are not part our their "normal" business model. I also like what Wally said about the downturn in the market "has thinned out the industry to the real players" The Arbor Crossing neighborhood was specifically recognized as an opportunity for buyers to take advantage of the significant price erosion in the Portland housing market. The pass currently has condos priced in the $209,000 price range. If you have the opportunity to read the article in full it was in the business section December 3, 2010. The article was written by Jeff Manning.

Fun Portland Activities during the Holidays

2010-12-02T15:04:00.000-08:00

There are so many fun things to do around Portland during the holidays. Some of these activities have been traditions that my family have continued over the years since I was a child. We always have a great time cutting down our Christmas tree. There are quite a few tree farms close to the Arbor Crossing and Arbor Pass neighborhoods. Some of the ones my family has gone to before are:
Helvetia Christmas Tree Farm: 12814 NW Bishop Rd. Hillsboro, Or 97124.
Andy's Tree Farm: 14713 NW Germantown Rd. Portland, Oregon 97231.
Parry's U Cut Tree Farm: 45627 NW David Hill Rd. Forest Grove, Oregon 97116.
Baggenstos Farm: 20200 NW Murphy Rd. North Plains, Oregon 97133.
Hagg's Tree Farm: 18265 SW McCormick Hill Rd. Hillsboro, Oregon 97123.
Besides the family outing cutting down our tree, we usually try to do something festive around town. Peacock Lane has always been a favorite, whether we walk down the street and enjoy a hot chocolate, or stay in the warm car and drive down the beautifully lit street. The Queen Anne Victorian Mansion is beautiful this time of year. The Portland Zoo also has a light festival that is fun for the whole family, and one of Portland's biggest celebration is the Festival of Lights at the Grotto. Take some time over the holidays to slow down and enjoy spending time with your family and try one of theses great places to spend a day. with the family. Happy Holidays to you and your family. From Arbor Pass and Arbor Crossing.

Newest member to Arbor Pass

2010-11-16T15:21:00.000-08:00

My name is Kara DuLong, and I am the newest team member out at Arbor Pass/Arbor Crossing. I will be assisting Kristi and am so excited to be part of the Arbor Custom Home family. I have been with Arbor Custom Home since the end of summer, but have been permanently place here at Arbor Pass/Arbor Crossing. I have lived in the Portland area my entire life, and graduated college from the University of Oregon. I am married and have two children, they are both in elementary school. When I am not here at work, you can find me at one of my kids soccer, baseball, football, or basketball games....If you have a chance come by a say hello, I would love to meet you.

2010-11-12T14:41:00.001-08:00

Arbor homes makes a difference

2010-11-06T10:28:00.000-07:00

Arbor is continuing to make a difference! Not only is Arbor building strong in this down economy but they have also added many build techniques that make your brand new home more energy efficient which saves you money but also cuts down on environmental impact as well. Good for you..... good for the world! Arbor is now building to Earth Star advantage guidelines.
Watch this short video below to see all the things Arbor does above & beyond other builders!
This is why many Arbor home owners buy another Arbor when they move to the next step in their lives.... weather it's to move into a bigger home when starting a family or moving into a smaller home once the kids have gone. Arbor builds everything from the condos here at Quatama/Orenco/Tanasbourne area up to 4,000 sq ft homes up in the Hills of the Beathany area in NW Portland.

ARBOR WINS BUILDER OF THE YEAR

2010-10-25T17:08:00.000-07:00

We are very proud to announce that Arbor Custom Homes has been selected as the recipient of the 2010 Home Builders Association of Metropolitan Portland’s “Builder Member of the Year” award. The HBA’s Nominating Committee evaluated several nominees based on criteria in four principal areas of service: Support of the industry, Leadership in the HBA, involvement in the HBA, and community involvement. The committee came to the conclusion that Arbor Custom Homes was most deserving of this year’s award.

Arbor will be recognized and presented this award at the HBA Builders Ball on Saturday evening November 20th. This kind of recognition is not possible without the leadership Wally and Dennis provide and all of the help from our team!

Congratulations!!

Orenco station homes

2010-10-19T13:27:00.000-07:00

The Orenco station area in Hillsboro is one of the most desirable areas to live in. Besides the fantastic restaurants, local specialty shops, close to the MAX, & a great farmers market found in this little charming Orenco area it is also very affordable right now to live close by! Imagine you work at Intel like many of our home owners do, every morning when it's time to go to work all you have to do is get right on the MAX and be to work in less than 10 mins. Besides being convenient for getting to work everyday also imagine how great it would be to be able to take the MAX to Blazer games, or Timbers games, or even just to go downtown Portland and not have to worry about parking or being able to have a drink because you won't have to drive. Here at Arbor Pass & Arbor Crossing we not only have quality built homes with energy savings craftsmanship but also stunning finishes and the lifestyle you are looking for! We have brand new home starting at only $119,900 & we only have 3 that are move in ready right now!

HOMES NOW STARTING AT $119,900

2010-08-29T10:24:00.000-07:00

Very exciting that these brand new condos are now starting at $119,900!

Stop by the sales office from 10-6pm weekends or 12-6pm weekdays for more information & to see some of our model homes!

Arbor Custom Homes gives back!

2010-07-11T17:20:00.001-07:00

Arbor Custom homes builds a replica playhouse for charity. Click the link to read about it on OregonLive!

The Arbor Pass pool is open!

2010-06-13T14:10:00.000-07:00

What a perfect weekend for swimming, lounging and just kicking back! Come live at Arbor Pass and enjoy the Arbor lifestyle!

Retail sales show surprising gain in February

2010-03-13T13:38:00.000-08:00

Martin Crutsinger, AP Economics Writer, On Friday March 12, 2010, 4:30 pm EST
WASHINGTON (AP) -- Retail sales posted a surprising increase in February as consumers refused to let snowstorms stop them from stepping up purchases for everything from clothes to appliances. The improvement provided hope that the recovery from the Great Recession is gaining momentum.

Some economists cautioned that spending increases will remain modest as long as wages stay flat and job creation weak. But others said the fourth gain in retail sales in five months meant consumers are starting to spend with more confidence.

"This is more than a one-month wonder," said Stuart Hoffman, chief economist at PNC Financial in Pittsburgh. "This is telling us that consumers, who had been tightening their belts throughout the recession, have now loosened them a notch."

For February, sales rose 0.3 percent, the Commerce Department said Friday. That surpassed expectations of a 0.2 percent decline.

The overall gain was held back by a 2 percent decline in auto sales, partly reflecting the recall problems at Toyota. Weakness in autos also caused a downward revision in January retail sales. They were reduced to an increase of just 0.1 percent, down from the 0.5 percent originally reported.

But outside of autos, sales rose a strong 0.8 percent in February. That was far better than the 0.1 percent rise economists had expected. And for January, excluding autos, sales gained 0.5 percent, just slightly below the 0.6 percent initial estimate.

Some analysts expressed concern about whether the spending gains can be sustained, given that unemployment remains high -- 9.7 percent in February -- and consumer confidence shaky. A separate report Friday showed that consumer confidence dipped to 72.5 in early March, down slightly from a February reading of 73.5, according to a Reuters-University of Michigan survey.

"Weak jobs growth, low wages growth and tight credit mean that any further acceleration in consumption growth is unlikely," Paul Dales, an economist at Capital Economics, wrote in a research note.

Prospects would improve if businesses, which have shed 8.4 million jobs since the recession began in December 2007, start rehiring laid-off workers. That would give households the incomes they need to support spending growth.

Economists said spending in both January and February likely gained support from higher tax refunds and tax credits paid by the government during the current tax filing season. Those increases reflect some of the tax relief included in the $787 billion economic stimulus package Congress passed last year.

Some analysts said the February retail sales report made them more confident that consumer spending -- which accounts for 70 percent of total economic activity -- will be enough to support moderate economic growth this year of around 3 percent.

"We needed the consumer to step up because that is the biggest part of the economy," said Sal Guatieri, an economist at BMO Capital Markets. "This retail sales report should go a long way toward alleviating fears that we might slip back into a recession."

The overall economy, as measured by the gross domestic product, began growing again last summer. That indicated the recession had ended. GDP growth surged at a 5.9 percent annual rate in the October-December quarter. About two-thirds of that surge came from a rise in manufacturing to supply goods for businesses that had let their stockpiles dwindle.

Consumer spending actually slowed a bit in the fourth quarter: It grew at an annual rate of just 1.7 percent. But some analysts said that, based on the January and February retail sales, consumer spending could strengthen in the current quarter and support a GDP gain of around 3 percent this quarter.

The February retail sales report showed widespread improvement. Sales at general merchandise stores, the category that includes department stores and big discounters such as Wal-Mart Stores Inc., rose 1 percent after a 1.3 percent rise in January.

Sales at appliance stores were up 3.7 percent. Sales at hardware stores rose by 0.5 percent. Furniture sales gained 0.7 percent.

Restaurants and bars enjoyed a 0.9 percent advance, their biggest gain in nearly two years. It suggested that snowbound Americans headed out to eat to get a break from their homes.

Some analysts had suspected that the February retail sales report could offer a positive surprise, given encouraging news last week from the nation's big retail chains. The International Council of Shopping Centers had reported that sales jumped 3.7 percent in February compared with a year ago. That marked the third straight increase and showed broad strength across all corners of retailing, indicating that consumers are starting to crawl back to where they had typically shopped before the Great Recession.

Shoppers shrugged off snowstorms to visit an array of merchants, from luxury retailer Nordstrom Inc. to middlebrow Macy's Inc. to discounter Target Corp. All three chains reported solid sales increases that beat analysts expectations. Another encouraging sign the reports showed was that shoppers are becoming more willing to pay full price, instead of focusing only on deeply discounted items.

During the height of the recession, shoppers, nervous about their evaporating stock portfolios and their jobs, had fled to discounters and cheaper brands. But even though extreme frugality is starting to thaw, shoppers remain cautious.

Zain Raj, global practice leader of Euro RSCG's retail brands division, noted that customers are starting to return to some of their brands and stores, but not for everything.

"Customers are picking and choosing where they're trading up," he said.

In a separate report, Commerce said business inventories were basically unchanged in January. Total business sales rose 0.6 percent, the eighth straight monthly increase.

AP Retail Writer Anne D'Innocenzio in New York contributed to this report.

U.S. Economy: Growth Jumps 5.7%, Fastest Pace in Six Years

2010-01-29T10:26:00.000-08:00

By Timothy R. Homan

Jan. 29 (Bloomberg) -- The U.S. economy expanded in the fourth quarter at the fastest pace in six years as factories cranked up assembly lines, indicating the recovery may be strong enough to be weaned from government support.

The dollar rallied as the data signaled the momentum generated by the world’s largest economy last quarter will carry into the new year. Rising investment in equipment and software is boosting sales at companies including Intel Corp. and may help bring the jobless rate down from close to a 26-year high as employers add staff to meet demand.

“We are getting on to something that is pretty sustainable,” said Bruce Kasman, chief economist at JPMorgan Chase & Co. in New York, who correctly forecast the gain in GDP. “Both consumers and businesses are beginning to increase spending. To get validation, we need to see a return in hiring, which we think we are going to get over the next few months.”

Consumer spending, which comprises about 70 percent of the economy, rose at a 2 percent pace following a 2.8 percent increase in the previous three months. Economists projected a 1.8 percent gain, according to the survey median. Efforts to rebuild depleted inventories contributed 3.4 percentage points to GDP, the most in two decades.

The dollar strengthened 0.7 percent to $1.3867 per euro. The Standard & Poor’s 500 Index fell 0.2 percent to 1,082.33 at 12:10 p.m. in New York after gaining as much as 1.1 percent.

For all of 2009, the economy shrank 2.4 percent, the worst single-year performance since 1946. Household purchases dropped 0.6 percent last year, the biggest decrease since 1974.

Intel, the world’s largest chipmaker, posted its biggest quarterly revenue in more than a year last quarter, a sign the computer industry has emerged from last year’s global recession.

“My expectation for 2010 is that we’re going to see robust unit growth,” Chief Financial Officer Stacy Smith said in an interview this month. “The consumer segments of the market will stay pretty strong, and I do believe we’re going to see a resurgence in PC client sales.”

Purchases of equipment and software increased at a 13 percent pace in the fourth quarter, the most since 2006, today’s Commerce Department report showed. The gain helped offset a 15 percent drop in commercial construction, leaving total business investment up 2.9 percent over the past three months.

White House economic adviser Christina Romer said today’s GDP report is “the most positive news to date” on the economy.

Romer, chairman of President Barack Obama’s Council of Economic Advisers, said that while economic growth is a “necessary first step for job growth” the government’s “focus must remain on getting Americans back to work.”

Obama this week said job creation will be the “number one focus in 2010.” Speaking during his first State of the Union address, Obama called on Congress to deliver a new jobs bill to his desk.

Payrolls fell by 85,000 last month after a 4,000 gain in November that was the first increase in almost two years. The U.S. has lost 7.2 million jobs since the start of the recession in December 2007, the most of any slowdown in the post-World War II era. The jobless rate held at 10 percent in December.

The Federal Reserve this week repeated a pledge to keep interest rates low for “an extended period” to bring down unemployment while also raising its assessment of the economy and repeating a decision to end purchases of $1.25 trillion of mortgage debt by March 31. Policy makers said business investment “appears to be picking up.”

Fed Chairman Ben S. Bernanke was confirmed for a second four-year term yesterday by the Senate with record opposition as some lawmakers criticized the central bank for doing more to help Wall Street than average Americans.

A Labor Department report today showed wages and benefits rose 0.5 percent in the fourth quarter, capping their smallest annual increase on record.

Gains in production last quarter stemmed the slide in inventories. Stockpiles dropped at a $33.5 billion annual pace following a $139.2 billion decline the previous three months. Inventories declined at a record $160.2 billion pace in the second quarter.

Business Barometer

The expansion is carrying into the new year, a report from the Institute for Supply Management-Chicago Inc. indicated today. The group said its business barometer climbed to 61.5, the highest level since November 2005, from 58.7 last month. Readings greater than 50 signal expansion.

A gauge of consumer confidence climbed in January to the highest level in two years. The Reuters/University of Michigan final index of consumer sentiment rose to 74.4 from December’s 72.5.

In other areas of the economy, today’s GDP report showed a smaller trade gap contributed 0.5 percentage point to fourth- quarter growth, while government spending was little changed, dropping at a 0.2 percent pace.

Residential construction climbed at a 5.7 percent rate last quarter after expanding at a 19 percent pace in the previous three months.

Inflation held below the Fed’s long-term forecast. The central bank’s preferred price gauge, which is tied to consumer spending and strips out food and energy costs, rose at a 1.4 percent annual pace following a 1.2 percent increase in the prior quarter.

The GDP price gauge climbed at a 0.6 percent pace, less than the 1.3 percent median forecast of economists surveyed.

Today’s GDP report is the first for the quarter and will be revised in February and March as more information becomes available.

Ten Cities To Go From Renting To Buying

2010-01-27T13:37:00.000-08:00

The U.S. government has pushed hard to make homeowners out of one-third of Americans who still rent their homes. It introduced and later extended a tax credit for first-time home buyers, and has kept federal interest rates at their lowest levels since the 1940s.

Market conditions are such that now is a particularly good time for some renters to take the hint.

In Portland, San Francisco, Minneapolis and Washington, D.C., the premium to buy--the spread between what you'd spend on renting and what you'd pay each month for a mortgage--is far narrower now than its 15-year average. And economists predict a significant home-price hike in five years. So upgrading will cost much less than usual, and home buyers are likely to get a good return on their investment.

Note that buying isn't necessarily cheaper than renting in these metro areas. In fact, it often remains a more expensive proposition. But for those determined to own, that investment is a better one now than it normally is.

Take San Francisco. To live here has always required a hefty bump in monthly costs from renting; it's normally an incredible 296% more expensive to buy than lease a home, and the city's residents know this. That's why 42% of them stick to renting. Even though in the third quarter of 2009 the premium was still in the triple digits--233%--it had shrunk by 63 percentage points from the above 15-year average. As with the other cities we've highlighted, you're not getting nearly as good a deal by renting as you might have just a few years ago.

"Rents are falling, but not nearly as rapidly as home prices," says Ron Witten, founder of Dallas-based Witten Advisors, an apartment market consulting firm. "Part of the reason is a shift away from home ownership toward renting," he says, in part because mortgages have become harder for many to obtain.

To find cities where it's a good time to go from renting to buying, we used data from Witten Advisors, which calculated the premium to buy for 42 Metropolitan Statistical Areas across the country using data from the U.S. Census, the National Association of Realtors and a blended average of fixed- and adjustable-rate mortgages from the Federal Housing Finance Agency (which oversees and regulates lenders). We compared the premium in the third quarter of 2009 with the average premium over the last 15 years to find the biggest drops.

We also wanted to pinpoint markets where home buying is a smart investment, so we factored in the five-year forecast in the S&P/Case-Shiller Home Price Index from Moody's ( MCO - news - people )Economy.com. The cities on our list have some of the biggest discounts on the premium to buy coupled with big projected increases in home prices over the next five years.

One major market we didn't look at is New York City, another spot where rents have softened less than home prices. Witten Advisors doesn't track the metro area because accurate historical data on rental costs there is exceedingly difficult to obtain.

Portland, Ore., makes our list for much the same reason that San Francisco does: It's a picturesque, culture-driven city with good local services and amenities. The city is still not particularly cheap for buyers--but it's cheaper than normal.

Visit The Forbes.com Digg ChannelA family hoping to put down roots there would normally pay a 62% premium to go from renting to buying. In the third quarter of 2009, however, that premium shrank by 16 percentage points. At the same time, Moody's Economy.com anticipates that home prices will jump 19% over the next five years. That's partly because, like San Francisco, Portland has strict government limitations on building and a coastal location that keep sprawl in check.

"Portland has one of the most controlled environments in the country in terms of development rights," says Stuart Gabriel, director of the Ziman Center for Real Estate at the UCLA Anderson School of Management. "Those supply constraints will push prices up."

Jobs Stability
The presence of jobs--along with strong industries that will keep generating new ones--is a big factor in keeping demand for homes, and therefore home prices, high. The weak national economy has helped reduce the premium to buy for the time being, but where the labor market is relatively healthy, home prices are predicted to shoot up.

In Minneapolis, for example, where large companies including Target ( TGT - news - people ) and General Mills ( GIS - news - people ) have their corporate headquarters (and there's a large university system), home buyers will only pay 14% more than if they were renting (24 percentage points lower than average), and home prices should climb by 15% in five years.

Similarly, in Washington, D.C., government jobs are plentiful, and anticipated to stay that way. The 6.1% unemployment rate here is well below the national average, which is partly why Moody's anticipates a five-year jump in home prices of 15%. And, at the moment, the premium to buy is 20 percentage points lower than its usual 57%.

Of course, whether buying or renting is best is ultimately an individual choice, and one driven by a lot more than map coordinates. When subprime lending was rampant, many without the means to buy were encouraged to do so anyway--and it's no secret how that turned out.

"If there's anything we should have learned from this housing cycle, it's that the decision to buy or rent ought to be a personal lifestyle decision," says Witten. "In part, it's a question about, 'Do I want to be a homeowner' in general, and specifically, 'Do I want to be a homeowner now, with this economic uncertainty?'"

Francesca Levy, 01.21.10, 04:50 PM EST

Stocks strengthen on Fed's economic assessment

2010-01-27T12:56:00.001-08:00

By Tim Paradis, AP Business Writers , On Wednesday January 27, 2010, 3:40 pm
NEW YORK (AP) -- The stock market turned higher Wednesday after the Federal Reserve issued a more upbeat assessment of the economy.

Major stock indexes had fallen before the Fed released its statement following a two-day meeting on interest rates, then advanced as investors digested the central bank's statement. Treasury prices reversed direction and fell after the statement as investors withdrew money from safe haven holdings.

The Fed said it believes that "economic activity has continued to strengthen" since its last meeting in December. However, the Fed did not repeat its assertion that the housing market is improving.

The Fed said it is leaving interest rates near zero, as expected, but also that Kansas City Federal Reserve President Thomas Hoenig has voted against the decision to keep rates low.

Jamie Cox of Harris Financial Group in Colonial Heights, Va., said Hoenig's vote signals the central bank is moving closer to boosting rates.

"That means there are a couple of people who feel like that the economy is getting better at a nice rate that no longer warrants these exceptionally low rates," he said.

Stocks had fallen ahead of the report as a 7.6 percent drop in sales of new homes in December brought concerns about the economy.

In late afternoon trading, the Dow Jones industrial average rose 44.14, or 0.4 percent, to 10,238.43. It had been down 40 ahead of the Fed's announcement.

The Standard & Poor's 500 index rose 5.43, or 0.5 percent, to 1,097.60, while the Nasdaq composite index rose 17.00, or 0.8 percent, to 2,220.73.

Stocks had closed lower five of the past seven days.

The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.64 percent from 3.63 percent late Tuesday.

The dollar rose against most other major currencies, while gold fell.

Scott Marcouiller, senior equity market strategist Wells Fargo Advisors in St. Louis, said the Fed's statement that it is slowing its purchase of mortgage-backed securities suggests the central bank believes the U.S. housing market is improving.

The Fed said it expects to complete the purchase of $1.25 trillion in agency mortgage-backed securities and about $175 billion in agency debt by the end of the first quarter.

"Once we settle in here, the market will like this," he added. "This (statement) tells me that they're comfortable with how the economy is progressing, even though they didn't come right out and say that."

Reassurance from the Fed couldn't erase all of investors' worries about the economy. Caterpillar Inc. hurt the Dow industrials after the equipment maker issued a cautious forecast. The stock fell $3.54, or 6.3 percent, to $52.31.

Technology stocks got a boost from Apple Inc. after the company announced a tablet-style computer that looks like a large iPhone. The stock rose $3.05, or 1.5 percent, to $208.99.

The Fed's announcement was the latest event in Washington to command investors' attention.

Treasury Secretary Timothy Geithner defended the government's rescue last year of insurance giant American International Group Inc. in hearings on Capitol Hill. Analysts said the sometimes heated exchanges between Geithner and members of the House Committee on Oversight and Government Reform underscored concerns that Washington would be more assertive in its dealings with Wall Street.

Geithner oversaw the bailout as head of the Federal Reserve Bank of New York. Former Treasury Secretary Henry Paulson also testified.

Traders are also waiting to see whether Fed chairman Ben Bernanke, whose term ends Sunday, will win Senate approval for a second, four-year term.

The hearings came after President Barack Obama said last week that he would seek to limit trading by major financial institutions. That drew concerns from investors that bank profits would suffer.

Investors also will be looking to Obama's State of the Union speech Wednesday evening for clues about his plans to tighten restrictions on banks.

In other trading, crude oil fell $1.48 to $73.23 per barrel on the New York Mercantile Exchange.

Three stocks fell for every two that rose on the New York Stock Exchange, where volume came to 978.8 million shares.

The Russell 2000 index of smaller companies rose 3.97, or 0.7 percent, to 616.13.

Overseas markets fell for a second straight day on concerns about China's move to curb bank lending. The country is trying to prevent speculative bubbles and rapid inflation as its economy continues to grow quickly. A slowdown in growth in China could stunt a global economic recovery.

Japan's Nikkei stock average fell 0.7 percent and Hong Kong's Hang Seng lost 0.4 percent.

Britain's FTSE 100 fell 1.1 percent, Germany's DAX index lost 0.5 percent, and France's CAC-40 dropped 1.2 percent.

Liberty High senior follows in brother's footsteps with success in Intel Science Talent Search

2010-01-22T12:47:00.000-08:00

You may ask why I have an article of a 12 grade student from Liberty High in Hillsboro. It is because Liberty High is our High School here at Arbor Pass. See how Alex McCarthy is making Liberty High proud.

By Wendy Owen, The Oregonian
January 21, 2010, 5:30PM
View full sizeTORSTEN KJELLSTRAND/The Oregonian Alex McCarthy, 18, is a semi-finalist in the national Intel Science Talent Search for his project involving solar energy, which brought him and Liberty High School $1,000. He often uses the balcony in his family's one-bedroom loft in Hillsboro for his other science projects, recently including a 7-foot construction crane that broke as he attempted to lift a slipper. HILLSBORO -- It's not uncommon for Alex McCarthy's parents to find pulleys, ropes and, occasionally, a crane dangling from the balcony circling their living room.

Eighteen-year-old Alex is driven by an insatiable curiosity about how things work. As a result, the Liberty High School senior recently was named one of five semifinalists from Oregon in the prestigious Intel Science Talent Search.

While Alex's feat is admirable in itself, he isn't the only one in his family to be ranked nationally as a young scientist.

His older brother, Brian, placed third in the nation in the 2008 Intel Science Talent Search, winning $50,000 for his work involving solar energy.

Such accomplishments might be expected in a family of engineers or chemists, but their parents are not scientists.

Their father, Brian McCarthy, is a chef specializing in vegetarian meals for Bon Appetit, which contracts with Intel. Their mother, Karen McCarthy, is finishing a bachelor's of science degree in child and family studies at Portland State University. She also works in the home department at Fred Meyer.

Low-key and humble, like their sons, the couple says they made a point of letting their boys explore what interested them. "As long as it was safe," Brian McCarthy said.

That interest was usually scientific. As youngsters, the brothers built dams and bridges in a mud hole in their backyard. Over the holidays, they launched Lego airplanes across the living room balcony from a catapult rigged with weights.

Asked what sparked his interest in science, Alex thought for a moment and said, "Legos, I would say."

In between bouts of building, they played strategic board games. Their parents kept them away from video games and social networking sites, such as Facebook. Encouraged them to read, instead.

"The family goes a long way in encouraging that desire to learn," said Milt Scholl, who teaches science and math at Liberty High School. He taught both boys and coaches Alex on the school's new robotics team as well as their Science Olympiad team.

Eventually, Alex's inquisitiveness pushed him to follow his brother in investigating solar energy. Organic solar cells are less expensive to create than the silicone cells now used, but they're not efficient, because they leak electrons generated by sunlight.

Alex determined that a layer of some type of compound might keep the electrons from leaking -- making solar energy more affordable.

He patiently drew a picture to explain the complicated project and noted that, so far, he hasn't found the right compound. But, he said, "These things don't ever really end."

Despite the work-in-progress, the Hillsboro teen's research placed him among 300 Intel Science Talent Search semifinalists from across the country. The number will be whittled to 40 finalists on Wednesday.

Those winners will receive a free week-long trip to Washington, D.C., in March to attend the Intel Science Talent Institute, which concludes with the naming of the top 10 scholarship winners and prizes ranging from $7,500 to $100,000.

The brothers developed their interest in solar energy through the Apprenticeships in Science and Engineering program, where they worked alongside graduate students in a chemistry laboratory at Portland State University. During different summers, each boy developed his own project to enhance solar cells.

"They were both extraordinary scientists: hard-working, creative and insightful," said Carl Wamser, chemistry professor at Portland State University.

Brian, 20, who is majoring in chemistry at the Massachusetts Institute of Technology, says his little brother has a passion for science, especially engineering.

"He seems to have this intuition for it. Even though I was two years older ... I could never do what he could with building," Brian said.

At Liberty High School, Milt Scholl described Alex, whom he's taught for four years, as very methodical in his approach to science. "It's a persistent intelligence," said Scholl, a former college professor. "That way of thinking gets him through everything."

Alex is considering mechanical engineering as his future. He plans to join his brother at MIT in the fall.

Brian has continued researching solar energy as a sophomore at MIT. Asked if he planned to partner with his younger brother to create the perfect organic solar cell, he said his research has moved away from solar cells, but he would entertain teaming up with is "best friend."

"I think we would make a good team, whether or not he would be interested I don't know."

Federal Housing Administration to raise fees

2010-01-21T11:53:00.000-08:00

Federal Housing Administration hikes fees, tightens standards for home loans

By Alan Zibel, AP Real Estate Writer , On Tuesday January 19, 2010, 8:48 pm EST
WASHINGTON (AP) -- The Federal Housing Administration is raising fees and tightening lending standards to shore up its strapped finances and avoid a taxpayer bailout.
The government agency has seen its losses rise with the foreclosure rate. Its reserves have sunk below the minimum level required by Congress. A healthy FHA is vital for the housing market because it insures roughly 30 percent of new loans, and is the largest backer of mortgages to first-time buyers.
The changes, which will go into effect in the first half of the year, "are among the most significant steps to address risk in the agency's history," FHA Commissioner David Stevens said in a prepared statement.
The FHA does not make loans, but rather offers insurance against default. Borrowers are willing to pay for the insurance because FHA loans only require down payments of 3.5 percent of the purchase price -- and that didn't change.
The new policies, to be announced Wednesday, are designed to bring more revenue into the agency, while at the same time keeping loans available.
Under the changes, homebuyers will:
--Pay an upfront mortgage insurance premium of 2.25 percent of the total loan amount, up from the current level of 1.75 percent. A borrower taking out a $200,000 mortgage would pay a $4,500 fee, for example, rather than the current fee of $3,500. Borrowers will still be able to wrap these fees into the total amount borrowed. FHA officials also plan to ask Congress to increase the maximum annual premium that FHA can charge.
--Need a credit score of at least 580 to qualify. Many FHA lenders already require a higher score, but there had been no standard requirement across the program. Borrowers with a score lower than 580 will need a down payment of at least 10 percent.
The changes come as borrowers with loans backed by the agency have increasingly been falling into default. More than 18 percent of FHA borrowers are at least one payment behind or in foreclosure, compared with 14 percent for all loans, according to the Mortgage Bankers Association.
Mortgage lenders "will find the new rules painful but necessary," said Howard Glaser, a mortgage industry consultant and former housing official during the Clinton administration.
There also have been fears that unscrupulous operators have shifted their business to the FHA after the subprime business went bust. Last week, the agency served subpoenas on 15 mortgage companies with suspiciously high default rates for FHA loans, part of a broad crackdown on dubious lenders.
The agency has already taken action against several problem lenders. One of the nation's biggest mortgage bankers, Taylor, Bean & Whitaker Mortgage Co. of Ocala, Fla., was banned from the FHA program in August and filed for Chapter 11 bankruptcy protection. Another mortgage company, Lend America, was kicked out in November.

Intel 4Q profit climbs as PC market turns around

2010-01-14T14:14:00.000-08:00

Intel 4th-quarter profit balloons as the personal computer market rebounds

By Jessica Mintz, AP Technology Writer , On Thursday January 14, 2010, 4:57 pm
Intel Corp. said Thursday its fourth-quarter profit ballooned as a strong rebound in the personal computer market overcame a hefty payment Intel made to its biggest rival.
Intel also said its revenue and profit margin in the current quarter could be better than what analysts are expecting, and its shares rose in extended trading.
Computer shipments grew more sharply than expected in the fourth quarter, and Intel supplies the vast majority of PC microprocessors. That helped Intel generate net income of $2.3 billion, or 40 cents per share. That was more than nine times as much as it earned in the year-ago quarter, when profit totaled $234 million, or 4 cents per share.
Sales climbed 29 percent to $10.6 billion.
Analysts expected a profit of 30 cents per share and $10.2 billion in revenue, according to Thomson Reuters.
Intel shares, which gained 2.5 percent to close regular trading Thursday at $21.48, rose 1.8 percent in extended trading to $21.87.
Intel is the first major technology company to report its results for the fourth quarter. The company is seen as a barometer for the PC market and technology spending in general.
"We're predicting that 2010 is a year of robust unit growth. I think it's continued strength in the consumer segment," said Stacy Smith, Intel's chief financial officer, in an interview.
Smith said Intel had not yet seen signs that big companies are replacing old PCs, but that he expects it to happen this year.
Intel issued an optimistic sign by saying that in the current quarter, it expects revenue from $9.3 billion to $10.1 billion, and a gross profit margin of 59 percent to 63 percent.
Analysts had been predicting first-quarter revenue of $9.3 billion and a gross margin of 59 percent.
In the last quarter, Intel paid $1.25 billion to settle antitrust charges brought by Advanced Micro Devices Inc., the world's No. 2 microprocessor maker. The company also said, however, that the payment would lower its tax rate because legal settlements are tax deductible.

Will Rates Go Up; Don't Take the Gamble, Buy Now!

2010-01-14T11:40:00.000-08:00

By Alan Zibel, AP Real Estate Writer , On Thursday January 14, 2010, 11:23 am EST
WASHINGTON (AP) -- Rates for 30-year home loans edged lower for the second straight week, a report said Thursday, but remained above last month's record lows.
The average rate on a 30-year fixed mortgage was 5.06 percent this week, down from 5.09 percent a week earlier, mortgage company Freddie Mac said.
Rates dropped to a record low of 4.71 percent in early December, pushed down by an aggressive government campaign to reduce consumers' borrowing costs, but then rose steadily for the rest of the month.
Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day, often in line with long-term Treasury bonds.
The Federal Reserve is pumping $1.25 trillion into mortgage-backed securities to try to bring down mortgage rates, but that money is set to run out next spring. The goal of the program is to make home buying more affordable and prop up the housing market.
While it's possible that the program could be extended, analysts believe the Fed is reluctant to do so. "We believe that the bar for the Fed's program extension is high," Credit Suisse mortgage strategist Mahesh Swaminathan wrote Thursday.
The average rate on a 15-year fixed-rate mortgages fell to 4.45 percent, down from 4.50 percent last week, according to Freddie Mac.
Rates on five-year, adjustable-rate mortgages averaged 4.32 percent, down from 4.44 percent a week earlier. Rates on one-year, adjustable-rate mortgages rose to 4.39 percent from 4.31 percent.
The rates do not include add-on fees known as points. One point is equal to 1 percent of the total loan amount.
The nationwide fee for loans in Freddie Mac's survey averaged 0.7 point for 30-year loans, 0.6 point for 15-year and five-year loans and 0.5 point for one-year loans.

Fed says mild economic pickup broadening

2010-01-13T14:09:00.001-08:00

Fed says mild economic pickup broadening

Reuters - A woman tries to fit into a car packed with toys after shopping at Toys R Us during ...
On Wednesday January 13, 2010, 4:00 pm EST
By Glenn Somerville
WASHINGTON (Reuters) - U.S. economic activity remained at a low level as 2010 began but was improving modestly and beginning to broaden out to include wider swaths of the country, the Federal Reserve said on Wednesday.
"Reports from the 12 Federal Reserve districts indicated that while economic activity remains at a low level, conditions have improved modestly further, and those improvements are broader geographically than in the last report," according to the periodic Beige Book report compiled this time by the Philadelphia regional Fed bank.
Ten districts said activity was picking up while the Philadelphia and Richmond Fed banks reported mixed conditions.
The Fed's findings were based on results of a survey taken on or before January 4. It said shoppers in the 2009 holiday season spent slightly more freely than in 2008 but at a rate still far below 2007 levels, when the economy was just on the verge of slipping into a serious financial crisis.
Job markets were still soft in most of the country, though the New York Fed reported "a modest pickup" in hiring and several service-sector firms in the St. Louis Fed region planned to take on more employees.
Wage rises and price pressures were subdued.
WON'T AFFECT POLICY
The Beige Book report, so called because of the color of its cover, will be used by U.S. central bank policymakers when the Federal Open Market Committee meets on January 26-27 to decide whether to adjust policy.
The Fed has slashed rates to near zero and pumped over $1 trillion into the financial system to prevent a banking failure and pull the economy out of the worst recession in decades.
It has pledged to hold rates ultra-low to nurture what appears to be a fragile recovery and comments from a senior policymaker on Wednesday reinforced the view that policy will be in place for some time.
"I think that we are going to be waiting for the economy to improve in a strongly sustainable fashion and until that happens then it's unlikely that we would be changing policy," Chicago Fed bank President Charles Evans told reporters after speaking to a business group in Coralville, Iowa.
Financial markets took the latest indication of modestly improving conditions positively, with stock prices adding to earlier gains after the report was issued in early afternoon.
It said home sales began increasing in most parts of the country as 2009 ended, especially for lower-priced homes. The extension of a federal tax credit for first-time homebuyers helped spur sales, according to realtors.
There were still plenty of signs of economic trouble.
The Fed said demand for loans continued to decline or weakened further in much of the country. As well, credit quality was still deteriorating and financial institutions in many districts including new York, Philadelphia and Cleveland said loan delinquencies were rising.
Commercial real estate conditions were still soft in most of the country. New York, Philadelphia, Kansas City and San Francisco all said that demand for commercial and industrial space was still losing momentum.
(additional reporting by Ann Saphir in Coralville, Iowa)
(Reporting by Glenn Somerville; Editing by Diane Craft)

Stocks to wrap up 2009 on high note

2009-12-27T11:22:00.000-08:00

NEW YORK (Reuters) - Wall Street is likely to make a strong showing in the final week of 2009 as the bulls gear up to toast the first annual advance for U.S. stocks in two years on hopes of more economic stability in 2010.

The U.S. stock market's resiliency since the March bottom has put investors in the mood to celebrate. The trading week will be cut short by the New Year's Day holiday on Friday, when U.S. financial markets will be closed.
The S&P 500 is poised for what could possibly be its best year since 2003 -- in sharp contrast to a year ago, when stocks plummeted in the fallout from the mortgage crisis and panic rocked investors as 2009 got under way.
Even though no "all clear" has been sounded for the U.S. economy, equity strategists said stocks were poised to add to recent gains this week and build a base for a solid start to 2010 as optimism about the recovery grows.
There is an expectation now that economic indicators will keep showing improvements in key areas like housing and the labor market.
"There's an upward bias," said Alan Lancz, president of Alan B. Lancz & Associates Inc, an investment advisory firm, based in Toledo, Ohio. "Economic numbers have been good. It's been an ideal situation for equities as there aren't that many other alternatives. I think the smarter money is going into equities."
The benchmark Standard & Poor's 500 .SPX started out November in a tight trading range. But by Christmas Eve, when stock trading ended early for the holiday, the S&P 500 had climbed to a 14-month closing high as investors bet the recovery would be strong enough to justify loftier stock valuations. U.S. markets were closed on Friday for Christmas.
DOUBLE-DIGIT GAINS FOR 2009
The S&P 500 is up 66.5 percent from a 12-year closing low set on March 9. Its trading levels now imply a forward price/earnings ratio of 15.5, according to Thomson Reuters data.
And oh, what a difference a year makes. The S&P 500 ended 2008 down 38.5 percent.
But for 2009, the S&P 500 is up 24.7 percent -- a gain that puts the broad market index on track for what could be its best year since 2003. An even stronger advance this week could put the S&P 500 in position for its best year since 1998.
For 2009, the Dow is up 19.9 percent and the Nasdaq is up 45 percent.
"The market is telling us that the economy is a lot stronger than people are giving it credit" for, said Cleveland Rueckert, a market analyst at Birinyi Associates in Stamford, Connecticut.
Although there might be some profit-taking in the final days of the year, the stock market's underlying tone should still be positive, Reuckert added.
"In our view, the market is going to go higher."
The ritual of window dressing should also support the stock market in the coming week, according to analysts. That strategy involves selling stocks with large losses and buying winners near the end of the year or quarter to improve a portfolio's performance.
"The fact that it's year-end is going to cause a fair amount of volatility on probably relatively light volume," said Michael James, senior trader at regional investment bank Wedbush Morgan in Los Angeles. "I would expect the bias would be to the upside toward the end of the week."
Volatility may be enhanced in a holiday-shortened week, when the U.S. stock market will be open for only four days.
Volume may be exceptionally light, with many market participants taking time off through New Year's Day.
CONSUMER CONFIDENCE ON TAP
Economic and corporate calendars are light this week. But there will be a few items worth keeping an eye on, including the U.S. Treasury's auctions of $118 billion of two-year, five-year and seven-year notes.
Investors will watch for how much demand there is for U.S. government debt as efforts to revive the economy pump up government spending.
As the holiday shopping season comes to a close, the Conference Board's index of December consumer confidence will merit Wall Street's attention on Tuesday. The forecast calls for a December reading of 52.3, up from 49.5 in November, according to economists polled by Reuters.
Investors will note the October S&P/Case-Shiller home price index, also due on Tuesday.
On Wednesday, the Institute for Supply Management-Chicago's December index of business activity in the U.S. Midwest region is set for release. The median forecast of economists polled by Reuters puts the ISM-Chicago index at 55.0 in December, down from 56.1 in November. A reading above 50 indicates expansion.
The government report on weekly jobless claims is due to be released on Thursday. Reports on the labor market are being scrutinized closely as investors try to determine when job growth might resume.
November's surprisingly upbeat nonfarm payrolls report showed the U.S. unemployment rate dipped to 10 percent from 10.2 percent. That slight improvement in the job market led investors to wonder about the potential removal of some of the U.S. Federal Reserve's stimulus measures and the prospects for interest-rate increases next year.
But to keep the fledgling recovery going, the Fed pledged again on December 16, at the end of its last policy meeting, to keep interest rates low for an extended period of time.
The Fed is hard-pressed to prevent the economy from sliding back into a slump, which would result in a double-dip recession.
The policy of near-zero interest rates has let investors to borrow dollars cheaply to then invest in higher-yielding assets like stocks.
"We think it's a good time to be invested in equities, and equities continue to offer the best risk-reward (ratio) among the major financial assets," said Tim Ghriskey, chief investment officer of Solaris Asset Management in Bedford Hills, New York.
(Reporting by Ellis Mnyandu; Additional reporting by Leah Schnurr and Chuck Mikolajczak; Editing by Jan Paschal)

U.S. Economy: Home Sales Exceed Forecasts as Buyers Seek Credit

2009-12-22T11:46:00.000-08:00

Dec. 22 (Bloomberg) -- Sales of existing U.S. homes in November rose to the highest level in almost three years as first-time buyers rushed to take advantage of a government tax credit and lower prices.
Purchases increased 7.4 percent to a 6.54 million annual rate, exceeding the highest estimate of economists surveyed by Bloomberg News, figures from the National Association of Realtors showed today in Washington. Another report showed the economy grew a less-than-forecast 2.2 percent in the third quarter as companies cut stockpiles, pointing to manufacturing gains at the start of 2010.
The housing market is getting a boost from efforts by the government and Federal Reserve to stabilize the industry at the center of the worst recession since the 1930s. Improved consumer spending combined with record decreases in inventories will promote production, which may keep the world’s largest economy growing into 2010.
The economy is “rebounding again pretty much across the board,” said Steven Wieting, managing director of economic and market analysis at Citigroup Global Markets Inc. in New York. “We will see somewhat stronger growth,” he said, adding “it’s not going to be one of these dramatic recoveries.”
Stocks rose and Treasury securities fell after the reports. The Standard & Poor’s 500 Index added 0.4 percent to 1,118.79 at 1:28 p.m. in New York, and the S&P Homebuilder Supercomposite Index was up 3.8 percent. The yield on the 10-year Treasury note rose to 3.74 percent from 3.68 percent late yesterday.
Slower Expansion
The economy grew at a 2.2 percent annual rate in the third quarter, down from a prior estimate of 2.8 percent, revised figures from the Commerce Department showed today. Companies curbed spending and cut inventories at an even faster pace, leading to a slower pace of expansion.
Existing home sales were projected to rise to a 6.25 million annual rate, according to the median forecast of 69 economists in a Bloomberg News survey. Estimates ranged from 5.2 million to 6.5 million. The NAR revised October’s reading down to a 6.09 million pace from an initially reported 6.1 million rate.
First-time buyers accounted for 51 percent of sales last month, and 71 percent of the houses sold cost less than $250,000, the report from the real-estate agents’ group showed. The figures indicate the government’s tax credit helped boost demand.
Mortgage Rates
Fed debt purchases are helping keep mortgage rates close to record lows, while President Barack Obama’s Nov. 7 extension and expansion of the tax credit through April may provide short-term impetus to sales and construction.
The central bank last week signaled it would keep lending rates low for “an extended period” to foster growth. The average rate on a 30-year fixed mortgage was 4.94 percent last week and has averaged 4.85 percent since the end of October, according to Freddie Mac.
“Housing is on a solid footing through to the spring markets,” said Derek Holt, an economist at Scotia Capital Inc. in Toronto, who forecast a rise to 6.5 million units. “But once foreclosed, unlisted homes go back on the market and homebuyers’ incentives come off, we’re looking at a weaker back half of next year.”
Purchases of existing homes rose 44 percent in November compared with a year earlier, the biggest increase on record. The median price was $172,600, down 4.3 percent from November 2008. The figure is influenced by the mix of sales and the drop reflects the growing proportion of lower-priced houses.
Home Prices
A report from the Federal Housing Finance Agency in Washington showed home prices fell 1.9 percent in October from a year earlier. The group’s U.S. housing index is down 10.8 percent from the April 2007 peak.
The number of previously owned unsold homes on the market fell 1.3 percent to 3.52 million. At the current sales pace, it would take 6.5 months to sell those houses compared with 7 months at the end of October. The ratio is the lowest since December 2006.
The share of homes sold as foreclosures or otherwise distressed properties was 33 percent, said Lawrence Yun, the agents group’s chief economist.
“The tax credit had the intended impact of drawing buyers in and lowering inventory,” Yun said in a news conference. “An estimated 2 million buyers have taken advantage of the credit.”
Single-Family Sales
The report showed sales of existing single-family homes rose 8.5 percent to an annual rate of 5.77 million. Sales of condos and co-ops were unchanged at a 770,000 rate.
Toll Brothers Inc., the largest U.S. luxury-home builder, projected deliveries may fall by as much as 33 percent in the 12 months through October 2010, and the average selling price may drop as low as $540,000.
“We believe it may take some time for Americans to regain confidence in our economy, their job status and the benefits of home ownership,” Robert Toll, chief executive officer at Toll Brothers, said in a Dec. 3 statement. “We anticipate a gradual recovery in housing, similar to the one that occurred in the early 1990s.”
To contact the report on this story: Bob Willis in Washington at bwillis@bloomberg.net Last Updated: December 22, 2009 13:31 EST

Merger news, analyst upgrades drive stocks higher

2009-12-21T14:10:00.000-08:00

By Stephen Bernard and Sara Lepro, AP Business Writers , On Monday December 21, 2009, 5:05 pm
NEW YORK (AP) -- Another wave of corporate dealmaking stoked investors' confidence in the economy and carried stocks sharply higher Monday.
Analyst upgrades of Alcoa Inc. and Intel Corp. and positive momentum on President Obama's health care overhaul also helped drive a broad advance on the stock market. Major indexes closed off their highs of the day but still rose about 1 percent. The Dow Jones industrial average jumped into the black for the month.
Bond prices tumbled as stocks rose, pushing the yield on the benchmark 10-year Treasury note up to its highest level since August. The dollar strengthened, hurting commodities prices.
Stocks got an early boost Monday after French drug maker Sanofi-Aventis SA announced plans to buy U.S. health care products company Chattem Inc. for $1.9 billion, while mining equipment maker Bucyrus International Inc. said it planned to buy Terex Corp.'s mining equipment division for $1.3 billion. Dutch automaker Spyker Cars submitted a new offer to buy Saab from General Motors Co.
Robert Pavlik, chief market strategist at Banyan Partners, said the flurry of corporate deal activity is an encouraging sign of strength in the economy.
"Companies are revealing that they are in a better position financially," he said. "If they weren't feeling as confident, you wouldn't see this type of activity occurring."
The deals announced Monday follow Exxon Mobil Corp.'s $29 billion takeover of XTO Energy Inc. last week.
In other corporate news, aluminum maker Alcoa Inc. announced an $11 billion joint venture in Saudi Arabia. The deal, along with an analyst's upgrade of the stock, drove Alcoa shares up nearly 8 percent, making it the best performer among the 30 stocks that make up the Dow.
An upgrade of chip maker Intel Corp. helped boost technology stocks, while health care stocks rose broadly as a historic health bill moved closer to passage in the Senate.
The Dow rose 85.25, or 0.8 percent, to 10,414.14, after rising as much as 130 points earlier in the day. The Standard & Poor's 500 index rose 11.58, or 1.1 percent, to 1,114.05, while the Nasdaq composite index rose 25.97, or 1.2 percent, at 2,237.66.
Bond prices sank as investors abandoned the safety of government debt in favor of stocks. The yield on the benchmark 10-year Treasury note, which moves opposite its price, climbed to 3.69 percent from 3.54 percent late Friday.
The dollar rose against other major currencies, making commodities more expensive for foreign buyers. Light, sweet crude for February delivery fell 70 cents to settle at $73.72 a barrel on the New York Mercantile Exchange. Gold also fell.
Monday's surge in stocks helped lift the Dow into positive territory for the month, giving it a 0.7 percent gain. Many analysts believe stocks should finish out the year strong after several weeks of listless trading.
Investors have been putting the brakes on stock buying since November, stepping back from the market following a historic rally over the past nine months. At the same time, prospects of an interest rate hike and a potential rebound in the dollar have dogged investors who spent the year taking advantage of low rates to borrow cheaply and invest in stocks and commodities.
Historically, December is the best single month for stocks, with the S&P 500 index averaging a 1.6 percent gain. So long as economic and corporate news continues to be encouraging, analysts expect the market to keep its momentum going into the new year.
Among the standout stocks, Chattem surged more than 33 percent, adding $23.16 to $93.14 after Sanofi-Aventis offered $93.50 a share for the company. Chattem, which is traded on the Nasdaq, helped lift that index to an intraday high for the year.
Alcoa shares shot up 7.9 percent after the announcement of the Saudi deal and Morgan Stanley's upgrade of the stock based on a forecast of higher aluminum prices. Shares jumped $1.15 to $15.73, after earlier hitting a 14-month high of $15.98.
About three stocks rose for every one that fell on the New York Stock Exchange, where volume was 1.01 billion shares compared with 3.16 billion shares at the same time on Friday.
Volume was exceptionally high Friday as several types of options contracts expired and S&P made changes to the S&P 500. That index is the basis for many indexed mutual funds, so those funds were forced to alter their holdings to match the reconstituted index.
In other trading, the Russell 2000 index of smaller companies rose 8.03, or 1.3 percent, to 618.60.
Overseas, Japan's Nikkei stock average rose 0.4 percent. Britain's FTSE 100 rose 1.9 percent, Germany's DAX index gained 1.7 percent, and France's CAC-40 jumped 2.1 percent.

Stocks rise to 2009 highs after Dubai

2009-12-15T12:04:00.001-08:00

Stock market ticks higher after Dubai gets $10B bailout; Exxon deal lifts energy shares
By Sara Lepro, AP Business Writer
On 5:45 pm EST, Monday December 14, 2009

NEW YORK (AP) -- Easing concerns about debt problems overseas and a $29 billion takeover deal by Exxon Mobil Corp. nudged major stock indexes to new highs for the year.

AP - FILE - In this Nov. 27, 2009 file photo, traders move about the floor of the New York ...

The market climbed Monday after the Middle Eastern city-state of Abu Dhabi extended $10 billion to nearby Dubai to help the emirate make debt payments. Analysts have been concerned since last month that a cash crunch in the former boomtown could send ripples through global credit markets.
The market's advance was uneven after Exxon Mobil said it would acquire XTO Energy Inc. The move will help Exxon tap into the growing supply of natural gas in the U.S. and could signal that more deals are afoot in the energy industry.
A 4.3 percent drop in shares of Exxon held the Dow Jones industrial average to more modest gains than other indexes, and shaved about $2 billion off the value of Exxon's all-stock bid for XTO. The Dow added 0.3 percent, while the broader Standard & Poor's 500 index rose 0.7 percent.
Financial stocks rose after Citigroup Inc. said it would repay the $20 billion it received last year from the government's financial rescue program. The government also will sell its 34 percent stake in the company. The news came just days after Bank of America Corp. repaid the $45 billion in bailout money it owed taxpayers.
The day's advance was orderly and signaled that traders remain cautious, as they have for weeks. A big run in stocks that began in March has slowed in the past month as investors look to lock in some of their gains from 2009 and determine how to position themselves for the new year. The S&P 500 index is up 1.7 percent so far this month, after a 5.7 percent gain in November and a 64.7 percent jump since early March.
"Most people, for the most part, have wrapped up the year," said Blaze Tankersley, chief market strategist at brokerage Bay Crest Partners.
The Dow rose 29.55, or 0.3 percent, to 10,501.05, its highest close since Oct. 1, 2008. The S&P 500 index rose 7.70, or 0.7 percent, to 1,114.11, its highest finish since Oct. 2, 2008. The Nasdaq composite index rose 21.79, or 1 percent, to 2,212.10.
The yield on the benchmark 10-year Treasury note edged up to 3.56 percent from 3.55 percent late Friday as prices fell.
The dollar fell against other currencies, helping to lift most commodities prices. Commodities are priced in dollars and become cheaper for foreign buyers when the greenback falls.
Gold rose, while oil fell 36 cents to settle at $69.51 a barrel on the New York Mercantile Exchange.
Analysts said stocks are likely to drift as investors await comments about the economy and interest rates from the Federal Reserve, which wraps up its last policy meeting of the year on Wednesday.
Investors expect the central bank to keep its benchmark interest rate at a historic low level of near zero. But there is some concern that rates could rise sooner than previously thought as the economy improves.
"People simply want to know if we are going to keep this low-interest-rate environment," said Michael Feser, president of Zecco Trading in Pasadena, Calif. "That has really been fuel for this market."
The Russell 2000 index of smaller companies rose 9.42, or 1.6 percent, to 609.79.
Three stocks rose for every one that fell on the New York Stock Exchange, where consolidated volume came to 4.5 billion shares compared with 3.9 billion Friday.
Britain's FTSE 100 rose 1 percent, Germany's DAX index rose 0.8 percent, and France's CAC-40 gained 0.7 percent. Japan's Nikkei stock average fell less than 0.1 percent.

IRS to outline changes in the home buyer tax credit program

2009-12-08T16:06:00.000-08:00

Revisions include expanded income limits, a cap on home prices, additional documentation requirements and prohibitions against claims by dependents.
By Kenneth R. Harney
December 6, 2009
Reporting from Washington - If you're thinking about applying for the new $6,500 home buyer federal tax credit or the extended $8,000 version, the Internal Revenue Service has just issued its first formal guidelines for you.Tops on the agency's list of advice: Cool it for a couple of weeks. Even if you qualify for one of the credits, don't send in any requests to the IRS quite yet. Wait until later this month when the agency publishes its revised Form 5405 with the key instructions needed to get you a check from the government.The forthcoming version of the form will incorporate the major changes to the tax credit program made by Congress in legislation signed by President Obama on Nov. 6. These include expanded income limits, a cap on home prices, additional documentation requirements and prohibitions against claims by dependents.In a tax bulletin issued just before Thanksgiving, the IRS emphasized that all home purchasers after Nov. 6 "must use this new version [of Form 5405] to claim the credit." Put another way: If you send in the old version -- the one you can currently download from the agency's website-- your request for the credit will probably go nowhere.The legislation -- known as the Worker, Homeownership and Business Assistance Act of 2009 -- extended the $8,000 first-time home purchaser credit until April 30 for signed contracts and June 30 for closings. The law also created a new tax credit for people who have owned a principal residence for a consecutive five of the previous eight years, and who purchase a replacement principal residence with a signed contract no later than April 30, followed by a closing no later than June 30.Qualified repeat buyers can obtain credits up to $6,500. For both the first-time and repeat buyer program, the credit is equal to 10% of the purchase price of the house, up to a maximum of either $6,500 or $8,000.The new IRS bulletin also outlined the agency's guidance on other important features of the amended credit program:* Members of the armed forces, as well as diplomatic and intelligence personnel serving in foreign countries, will get an extra year to buy a principal residence and still qualify for a credit. They will have until April 30, 2011, to enter into a contract to purchase a house, and until June 30, 2011, to close on it.* Anyone who buys a house after Nov. 6 -- even those who had intended to get in the door before the previous Nov. 30 expiration date for the $8,000 credit -- will now need to comply with several new rules. First, the house cannot cost more than $800,000. Second, no one under age 18 can claim the credit no matter what the circumstances. And finally, anyone who is counted as a dependent on another taxpayer's federal filings is ineligible for a home purchase tax credit.* The expanded income limits for purchasers after Nov. 6 range to $125,000 in "modified adjusted gross income" for single taxpayers and to $225,000 for those who file jointly. Singles with incomes between $125,000 and $145,000 may be eligible for reduced credit amounts, as are joint filers with incomes from $225,000 to $245,000. Anyone with an income above these amounts cannot qualify for either of the credits. Under the pre-Nov. 6 rules, taxpayers applying for the $8,000 credit were limited to incomes of $75,000 (single filer) to $150,000 (joint filer).The IRS continues to offer detailed consumer information resources on the credits, including questions and answers on a variety of home purchase scenarios.For example, some taxpayers seeking the extended $8,000 credit are uncertain about co-purchase and co-signing situations, especially involving parents and adult children. When a home-owning parent co-signs for a mortgage with a son or daughter, and both names appear on the note, can the son or daughter qualify for the first-time purchaser credit?The IRS says the parent clearly does not qualify for any portion of the credit since he or she already owns a principal residence. But if the son or daughter has not owned a house during the three years preceding the current purchase, and qualifies on income, he or she can be allocated the entire $8,000 credit.Similarly, when unmarried individuals co-purchase a house, and only one of them is eligible for the credit, the full $8,000 can be allocated to the eligible buyer.kenharney@earthlink.netDistributed by the Washington Post Writers Group.
Copyright © 2009, The Los Angeles Times

Stocks climb as falling dollar boosts commodities

2009-12-01T13:04:00.001-08:00

Stocks rise as dollar slides; reports on housing, construction point to improving economy
By Tim Paradis and Ieva M. Augstums, AP Business Writers
On 3:45 pm EST, Tuesday December 1, 2009

NEW YORK (AP) -- The stock market is picking up where it left off before its scare over debt problems in Dubai.

AP - FILE - In this Nov. 27, 2009 file photo, Traders move about the floor of the New York ...
Major stock indicators rose more than 1 percent, including the Dow Jones industrial average, which jumped 120 points to send the Dow above 10,500 for the first time since October last year.
The weakening dollar again boosted stocks, a pattern that has played out for months. The cheaper U.S. currency drove up commodities prices and lifted the stocks of energy and materials companies that produce them.
Analysts said a mostly upbeat array of economic reports and easing worries about the fallout from debt struggles in Dubai gave investors who had jumped out of the market reason to return.
The market's two-day advance leaves the Dow where it was before tumbling Friday on worries that an investment fund in Dubai wouldn't be able to pay its debts and trigger another financial spiral like the one that followed the collapse of Lehman Brothers last year.
Rick Bensignor, chief market strategist at Execution LLC, said the drop in the dollar and a move into riskier assets is a sign that investors who jumped out of stocks or rushed into defensive positions are shedding worries of a wider debt problem from the Middle East.
"The market has essentially shaken it off," he said. "The whole move is as if nothing happened last week."
Economic reports were mixed, but still pointed to a strengthening trend in the economy. The Institute for Supply Management, a trade group, said overall manufacturing activity grew at a slower pace in November but that new orders rose. That signals activity could pick up in the coming months. Its employment measure grew for the second straight month after sliding for more than a year.
The snapshot of U.S. factories followed report from a Chinese industry group that said manufacturing activity grew in November for the ninth consecutive month.
Separately, the National Association of Realtors said its seasonally adjusted index of sales agreements rose in October to the strongest level since March 2006. Economists had expected the index would fall.
The government said construction spending edged higher in October, the first increase in six months.
The reports gave investors new confidence that a nearly nine-month rally in the stock market still has legs thanks to continued signs of expansion in the economy. The Dow jumped 6.5 percent in November, its best monthly gain since July, and it's up 58 percent from a 12-year low in March.
In late afternoon trading, the Dow rose 122.58, or 1.2 percent, to 10,467.42. The Standard & Poor's 500 index gained 12.55, or 1.2 percent, to 1,108.18, while the Nasdaq composite index rose 31.19, or 1.5 percent, to 2,175.79.
The ICE Futures U.S. dollar index, which measures the greenback against a basket of foreign currencies, fell 0.6 percent.
Crude oil rose $1.07 to $78.35 per barrel on the New York Mercantile Exchange. Gold rose.
Bob Froehlich, senior managing director at Hartford Financial Services, said the day's economic news addressed some of investors' biggest worries: employment, housing and China.
"What we're seeing is that we've got two of those three fixed," he said. "There are signs everywhere you look that the worst is behind us."
Froehlich said he expects the nation's unemployment rate, already above 10 percent, will worsen before it begins to improve.
Industrial names rose as commodities advanced after the reports on manufacturing and construction.
Aluminum producer Alcoa Inc. rose 25 cents, or 2 percent, to $12.77. It was one of the biggest gainers among the 30 stocks that make up the Dow industrials.
Freeport-McMoRan Copper & Gold Inc. rose $1.04, or 1.3 percent, to $83.84.
Energy stocks also rose. Schlumberger Ltd., which provides services to oil companies, rose $1.16, or 1.8 percent, to $65.05.
Home builders climbed on the day's economic reports. Beazer Homes USA Inc. advanced 13 cents, or 3 percent, to $4.43. Pulte Homes Inc. rose 20 cents, or 2.2 percent, to $9.34.
Richard Ross, global technical strategist at Auerbach Grayson in New York, said investors aren't willing to give up on the market's surge even if they have concerns it might be overdone.
"It speaks to that sort of bullish undercurrent," he said. "Whether it's misplaced optimism, that's another question."
Four stocks rose for every one that fell on the New York Stock Exchange, where volume came to 803.9 million shares compared with 751.2 million shares traded at the same point Monday.
The Russell 2000 index of smaller companies rose 8.27, or 1.4 percent, to 588.00.
Overseas markets jumped as fears eased about Dubai's credit problems. The emirate's government investment company said it was looking at restructuring part of its $60 billion in debt.
Japan's Nikkei stock average added 2.4 percent. Britain's FTSE 100 rose 2.3 percent, Germany's DAX index advanced 2.7 percent, and France's CAC-40 rose 2.6 percent.

Home prices up slightly in September

2009-11-24T11:33:00.000-08:00

Home prices up slightly in September; analysts expect declines as foreclosures rise.

By Alan Zibel, AP Real Estate Writer
On 2:09 pm EST, Tuesday November 24, 2009
WASHINGTON (AP) -- The summer's trend of rising home prices faded at the end of the traditional home shopping season, two reports Tuesday showed.

The Standard & Poor's/Case-Shiller home price index of 20 major cities rose only 0.3 percent to 144.96 in September, but it was the fourth straight monthly increase. The seasonally adjusted index is now up more than 3 percent from its bottom in May, but still 30 percent below its peak in April 2006.
Another reading of home prices by the Federal Housing Finance Agency held steady from August to September.
Analysts expect prices to dip again this winter as foreclosures increase and economic growth remains modest. The government said Tuesday that the economy grew at a 2.8 percent rate last quarter -- less than originally estimated. And forecasts for the next several months are no better. Unemployment, meanwhile, could rise from the current 10.2 percent to as high as 11 percent next year.
"As long as the unemployment rate stays elevated, you're going to see pressure on the pace of foreclosures, which are going to find their way back onto the market, depressing prices," said Dan Greenhaus, chief economic strategist with Miller Tabak & Co.
Home prices are a key ingredient to rebuilding the economy. Homeowners feel wealthier when their property appreciates in value and are more likely to spend money. Rising prices also help millions of homeowners who owe more to the bank than their homes are worth.
Currently, roughly one in four homeowners are in that situation, according to First American CoreLogic, a real estate information company. And a record 14 percent of homeowners with a mortgage are either behind on their payments or in foreclosure, the Mortgage Bankers Association said last week.
"We are very worried about the potential for a huge wave of supply next year, both from private sellers and banks," wrote Ian Shepherdson, chief U.S. economist at High Frequency Economics. "Prices could easily reverse their recent gains."
Spring and summer are typically the best times of the year for the housing market, because families prefer to move between school years. And this year's sales were aided by a tax credit for first-time buyers, which drove up sales nearly 30 percent between May and October.
In the winter months, fewer homeowners put their properties on the market. That means a bigger proportion of the sales will be foreclosures.
Last winter, sales of foreclosures and other distressed properties made up about half of all sales in February and March, compared with about a third over the summer, according to the National Association of Realtors.
With those low-priced properties dominating sales, Barclays Capital economist Michelle Meyer forecasts an 8 percent drop in prices before they hit bottom next spring, but said, "I don't expect another freefall."
Continuing economic woes will likely force many consumers to shorten their Christmas shopping lists. Consumer confidence in the economy improved slightly in November from October, but shoppers are still gloomy, the Conference Board reported Tuesday.
In the Case-Shiller report, home prices rose in 11 major cities, with the strongest gains in San Francisco and Minneapolis, according to the Case-Shiller report. That's a shift from the summer, when price gains were broad. In July, for example, prices were up in 17 cities.
Prices fell by the most in Las Vegas and Cleveland. Compared with a year earlier, the 20-city index was down about 9 percent, the smallest year over year decline since January 2008.
"With housing remaining an albatross around the economy's neck, nothing would perk things up more than some increases in home prices," wrote Joel Naroff, chief economist at Naroff Economic Advisors. "That seems to be happening."
The Commerce Department on Wednesday will release new home sales data for October. Economists expect a 2 percent increase from September to an annualized rate of 410,000, according to Thomson Reuters.
AP Economics Writer Jeannine Aversa contributed to this report.

Weak dollar, home sales data carry stocks higher

2009-11-23T12:55:00.001-08:00

NEW YORK (AP) -- Investors halted stocks' three-day losing streak Monday, sending prices higher across the market on a lower dollar and better-than-expected home sales numbers.

AP - Specialists work on the floor of the New York Stock Exchange Monday, Nov. 23, 2009.
Major stock indexes soared more than 1 percent in afternoon trading, including the Dow Jones industrials, which touched a new 13-month high.
Investors found plenty reasons to buy as the day's developments pointed to two trends: an improving economy and interest rates that are expected to stay low:
--The National Association of Realtors news that October home sales rose more than 10 percent revived investors' optimism after disappointing data on the housing industry last week raised concerns about the strength of the economic recovery.
--Charles Evans, head of the Federal Reserve Bank of Chicago, was quoted as saying he saw little risk that the economy would slide back into recession, although unemployment is unlikely to fall until next summer. And James Bullard, president of the Federal Reserve Bank in St. Louis, said the U.S. Fed should continue to buy mortgage-backed securities after the program is supposed to expire in March. That would continue to keep interest rates low.
--The dollar, a key factor in stock trading in recent months, extended its pullback, sending prices for commodities including gold and oil higher and in turn, the stocks of companies that produce them.
Meanwhile, bond prices retreated as investors regained their appetite for risk.
Low interest rates and a resulting slide in the dollar have been big drivers behind the stock market's eight-month rally. Low interest rates enable investors to borrow cheaply and buy assets like stocks and commodities that have the potential to earn higher yields than cash.
Investors were buying Monday on somewhat contradictory forces in the market. The strength in housing is a sign of an improving economy, which could argue in favor of raising rates, while the dollar's weakness points to rates remaining low. Analysts say investors who still have plenty of available cash are primed to buy, and so the market may also be rising on its own momentum.
"There's still $2 trillion of cash that needs to find its way into the stock market," said Phil Orlando, chief equity market strategist at Federated Investors.
Orlando said investors will continue to look for dips in the rally as a way to get into the market, not wanting to end the year without participating in some of the big gains stocks have made.
"Bearish managers are sweating bullets that they're not going to be able to get that cash in the market and they need to do that," he said. "That is why any pullback we've seen this year has been met with a wave of cash that has pushed stocks up higher."
At the same time, many portfolio managers have cooled their buying, not wanting to risk losing the big returns they've made since stocks began rallying in March. Those opposing forces are likely to result in choppy trading over the next few weeks, analysts said, which will be exacerbated by light volume as the holidays approach.
The Dow Jones industrial average rose 124.32, or 1.2 percent, to 10,442.48, after losing 120 points over the previous three days. Earlier, the Dow rose as much as 177 points to a new 13-month high of 10,495.61.
The Standard & Poor's 500 index rose 13.94, or 1.3 percent, to 1,105.32, while the Nasdaq composite index rose 26.80, or 1.3 percent, to 2,172.84.
About four stocks rose for every one that fell on the New York Stock Exchange, where volume came to a low 629.2 million shares, compared with 803.1 million at the same time on Friday. Many traders were already on vacation for Thanksgiving, and the decreased volume can contribute to price swings.
The ICE Futures U.S. dollar index, a widely used measure of the dollar against other currencies, fell 0.7 percent in afternoon trading. As the dollar fell, gold prices surged to a new high of $1,174 an ounce. Oil rose 20 cents to $77.67 a barrel on the New York Mercantile Exchange.
The spike in commodities lifted the shares of energy companies and materials producers. Chevron Corp. rose $2.04, or 2.7 percent, to $78.81. Weyerhaeuser Co. gained $1.32, or 3.5 percent, to $39.18.
Bond prices fell as investors moved back into stocks. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.38 percent from 3.37 percent late Friday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.03 percent from 0.01 percent.
The yield on the three-month bill briefly dipped into negative territory last week as worries about the economy took hold and investors retreated to safe havens like the dollar and government debt as they sold stocks.
Investors wanting to lock in profits as the year comes to a close are willing to earn very little to park their cash in a safe place.
"It's not a time for taking chances," said Quincy Krosby, market strategist at Prudential Financial.
TheRealtors said home sales rose 10.1 percent in October to the highest level in two and a half years, spurred by a tax credit for first-time homebuyers. Analysts had been expecting a 1.4 percent increase in sales. The credit, due to end at the end of the month, has been extended into 2010.
"You could be completely cynical and say this market is moving up today because volume is low and the dollar is weak, but I would have to add that we're getting confirmation on the sustainability of the economic recovery by the actual fundamentals," Krosby said, referring to the housing report.
In other trading, the Russell 2000 index of smaller companies rose 10.08, or 1.7 percent, to 594.76.
Overseas, Britain's FTSE 100 rose 2 percent, Germany's DAX index soared 2.4 percent, and France's CAC-40 jumped 2.3 percent. Markets in Japan were closed for a holiday.

Stocks jump as retail sales rebound in October

2009-11-16T12:07:00.000-08:00

Stocks vault higher after retail sales rebound in October; Weakening dollar lifts commodities

By Stephen Bernard and Tim Paradis, AP Business Writers
On 2:21 pm EST, Monday November 16, 2009

NEW YORK (AP) -- Investors kept the stock market's upward momentum going Monday, sending shares sharply higher after retail sales rebounded more than expected in October and the dollar extended its slide.

AP - FILE - In this Sept. 15, 2008 file photo, a Wall St. street sign is seen near the ...
Major stock indexes rose more than 1 percent to new 13-month highs, including the Dow Jones industrial average, which jumped 145 points. The Standard & Poor's 500 index topped 1,110, the first convincing move above 1,100 after hovering around that level for the past month.
The Commerce Department said retail sales rose 1.4 percent in October, easily surpassing the 0.8 percent increase forecast by economists polled by Thomson Reuters. It was a sharp rebound following the 2.3 percent drop in September. Excluding the gain from autos, however, sales rose just 0.2 percent, half of what economists predicted.
Jamie Cox, a managing partner at Harris Financial Group, said the sales growth was a good sign heading into the holiday shopping season, especially because the data were not affected by factors such as sales tax holidays and government stimulus programs that had been present in the preceding months.
The weaker dollar lifted gold to a new record and pumped up prices of other commodities, including oil. That, in turn, helped shares of energy and materials companies.
Stocks briefly pared their gains after Federal Reserve Chairman Ben Bernanke said policymakers would monitor the dollar while at the same time repeating that the Fed will hold interest rates low until the economy strengthens. That gave a short-lived boost to the dollar.
The market's own dynamics fed some of the day's gains, analysts said.
Dan Deming, a trader with Stutland Equities, said the S&P 500's move above 1,100 gave some investors a shot of confidence and led to short-covering, which tends to amplify gains in the market. Short-covering occurs when investors have to buy stock after having earlier sold borrowed shares in a bet they would fall.
"We're breaking through the 1,100 mark, which is psychologically significant, and the market is seeing a little pop from that," Deming said.
In midafternoon trading, the Dow rose 154.86, or 1.5 percent, to 10,425.33. The broader S&P 500 index rose 19.28, or 1.8 percent, to 1,112.76. It traded above 1,100 in mid-October but hasn't closed above that benchmark since October last year. The S&P 500 index first finished above 1,100 more than a decade ago, in March 1998.
The Nasdaq composite index rose 34.52, or 1.6 percent, to 2,202.40.
The Russell 2000 index of smaller companies advanced 17.21, or 2.9 percent, to 603.49.
The ICE Futures US dollar index, which measures the dollar against other currencies, fell 0.6 percent. Gold reached a record $1,143.40 an ounce.
Investors have been using the weak dollar to finance purchases of higher-yielding assets. The move, what's known as a "carry trade," can further weaken the dollar.
Bond prices rose, pushing down yields. The yield on the benchmark 10-year Treasury note fell to 3.37 percent from 3.42 percent late Friday.
General Motors Co. said it lost $1.2 billion in the period since emerging from bankruptcy and the end of the third quarter on Sept. 30. Despite the loss, GM said it will begin to repay $6.7 billion in government loans and was seeing a stabilization in its business.
Home improvement retailer Lowe's Cos. reported lower profits that matched analysts' expectations and said it was seeing stabilization in some of the hardest hit housing markets. The company's shares fell 6 cents to $21.79.
Investors will get more insight into consumer spending from retailers Home Depot Inc., Target Corp. and TJX Cos., which are due to report earnings Tuesday.
Cox said the wide range of retailers reporting earnings during the week will provide signals into whether shoppers are willing to step up their spending and move back toward more expensive goods. Investors will be parsing any updated forecasts from the companies ahead of the holiday shopping season.
The stock market is coming off a strong week, which added more than 2 percent to major indexes. On Friday the market was buoyed by encouraging earnings reports and outlooks from major retailers Abercrombie & Fitch Co. and J.C. Penney Co. as well as The Walt Disney Co.
Crude oil rose $2.84 to $79.19 per barrel on the New York Mercantile Exchange.
Energy stocks rose. Baker Hughes Inc. rose $2.37, or 5.7 percent, to $43.82, while Devon Energy Corp. advanced $3.93, or 5.8 percent, to $71.66.
Freeport-McMoRan Copper & Gold Inc. rose $3.37, or 4.1 percent, to $84.94.
Ten stocks rose for every one that fell on the New York Stock Exchange, where volume came to 624.9 million shares compared with 557.4 million shares traded at the same point Friday.
Overseas, Japan's Nikkei stock average rose 0.2 percent after that country's economy grew for the second straight quarter, marking an end to the recession there.
Investors also drew confidence from the results of the 21-member Asia-Pacific Economic Cooperation forum, which said it would maintain stimulus spending until a global economic recovery is at hand.
Britain's FTSE 100 rose 1.6 percent, Germany's DAX index gained 2.1 percent, and France's CAC-40 rose 1.5 percent.

Proud Brother

2009-11-14T15:41:00.001-08:00

Some of you may not know, but I have an older brother that lives in California. He too is in the construction business. My brother this year closed on his first home and took advantage of the $8K tax credit. I am so proud that he worked really hard to save up his down payment and position himself to afford his first home. But what I am really proud of is how he has overcome adversity.
When my brother was in high school he was in a bad car accident and eventually lost his left leg. When he lost his leg, I thought he would just give up on life. Was I wrong, really wrong. He is much more active than I have ever been (see photo). He is thriving at work and enjoying his beautiful family. I am such a proud brother. Way to go bro!

Dow jumps 204 to high for year...

2009-11-09T15:18:00.001-08:00

By Tim Paradis, AP Business Writer
On 5:59 pm EST, Monday November 9, 2009
AP - FILE - In this Sept. 25, 2008 file photo, a Wall St. street sign is shown in front ...

NEW YORK (AP) -- The Dow Jones industrial average stormed to its highest level in more than a year Monday as a falling dollar boosted prices for gold, oil and other commodities. Stocks also jumped as investors grew more confident that governments around the world will keep interest rates low to help the global economy.
Energy and materials stocks led the market. The major indexes rose 2 percent and the Dow jumped 200 points for the second time in three days, reaching its highest level in 13 months.
News that the Group of 20 countries will keep economic stimulus measures in place signaled to investors that rates will remain low. With U.S. rates near zero, the G-20 news lessened demand for the dollar.
Even as investors are waiting for more signs that the economy is recovering, they've been focusing on the dollar when they make buy and sell decisions. Investors around the world see the dollar as weaker than other currencies, and so they're using it for what's known as "carry trade," to finance purchases of investments in other countries. That trend takes the dollar down further when those purchases are made.
But some analysts are questioning investors' stock moves given the still-weak economy, and warn that stocks and other investments could suffer big losses if the dollar were to turn higher.
"It feels like it's on fumes," said Sean Simko, head of fixed income management at SEI Investments in Oaks, Pa., referring to the market's advance. "Although fundamentals are catching up, they're not caught up."
He said the dollar's drop and the current surge in stocks and commodities are making it hard for investors to get a clear picture of how fast the economy is rebounding.
Still, many investors like a weaker dollar because it helps U.S. exporters by making their goods cheaper to overseas buyers and giving the companies a boost when they convert profits from abroad to dollars.
The ICE Futures U.S. dollar index, which measures the greenback against a basket of foreign currencies, fell to its lowest level in 15 months. The dollar rose last year and early this year but the index has been sliding for the past eight months since major stock indicators bounced off 12-year lows.
Although investors have based most of their decisions on the economy, they've also been funneling money into stocks when the dollar weakens and pulling it out when the greenback rises.
Commodities prices, meanwhile, tend to rise when the dollar is down, so gold topped $1,100 an ounce. Crude oil rose $2 to settle at $79.43 per barrel on the New York Mercantile Exchange, helped in part by Tropical Storm Ida, which threatened the Gulf of Mexico.
Energy and materials stocks rose along with commodities prices, and investors' enthusiasm for those stocks spilled over to other industries.
Brian Battle, vice president of trading at Performance Trust Capital Partners in Chicago, said the strength of the carry trade is giving an artificial lift to a range of assets, including stocks.
"There's cheap money that's going to be pumping its way into the system," he said. "That money is finding a home in the currency and commodity markets."
The Dow rose 203.52, or 2 percent, to 10,226.94, its highest finish since Oct. 3, 2008. The Dow's gain of 455 points, or 4.7 percent, since Wednesday is its biggest four-day climb since July.
The index rose as high as 10,228.23, topping its previous 12-month trading high of 10,119.46 set last month.
The broader Standard & Poor's 500 index rose 23.78, or 2.2 percent, to 1,093.08, its sixth straight advance. The Nasdaq composite index rose 41.62, or 2 percent, to 2,154.06.
Five stocks rose for every one that fell on the New York Stock Exchange, where consolidated volume came to 4.6 billion shares, compared with 4.3 billion Friday.
Bond prices were little changed. The yield on the benchmark 10-year Treasury note, which moves opposite its price, slipped to 3.49 percent from 3.50 percent late Friday.
The dollar's slide also came as the International Monetary Fund said the dollar remained "on the strong side." That added to selling pressure.
Jason Pride, director of research at Haverford Investments outside Philadelphia, isn't troubled by the slide in the dollar because he sees it as another sign that fear in the market is easing after the pounding of the past two years. Investors rushed into the dollar as they sought the safest assets.
"As the economy gets back to normal from what were very dire circumstances earlier this year the equity markets are going to be moving up and the dollar should be falling," he said.
"You're seeing a lot of pieces move off each other and the dollar is driving a lot of it," he said.
Retailers had some of the biggest gains in the market's broad advance. Abercrombie & Fitch Co. rose $2.58, or 7.4 percent, to $37.59 after analysts said international growth would boost growth at the teen apparel retailer. The company is scheduled to release its fiscal third-quarter numbers Friday.
Investors are looking for any insight into how much consumers are spending as the holidays approach. J.C. Penney Co., Macy's Inc. and Wal-Mart Stores Inc. are among the stores expected to post quarterly results this week.
Among energy stocks, Exxon Mobil Corp. rose 69 cents, or 1 percent, to $72.85. Gold producer Newmont Mining Corp. rose $1.52, or 3.1 percent, to $50.56 and hit a new high for the year.
The Russell 2000 index of smaller companies rose 11.96, or 2.1 percent, to 592.31.
Overseas, Britain's FTSE 100 rose 1.8 percent, Germany's DAX index jumped 2.4 percent, and France's CAC-40 rose 2.1 percent. Japan's Nikkei stock average rose 0.2 percent.

Obama Signs Homebuyer Tax Credit Extension

2009-11-08T13:38:00.000-08:00

RISMEDIA, November 9, 2009—President Barack Obama has approved the first-time homebuyer tax credit extension which will extend the tax credit until April 30, 2010.
The extension is part of a $24 billion economic stimulus bill that will extend the $8,000 tax credit for homebuyers who are purchasing their first home from the current November 30 deadline and expands the program to offer a credit of $6,500 to homeowners who have lived in their current home for at least five years and are seeking to relocate.
The following details apply to the homebuyer tax credit expansion:

Who is Eligible-First-time homebuyers, who are defined by the law as buyers who have not owned a principal residence during the three-year period prior to the purchase, may be eligible for up to an $8,000 tax credit.-Existing homeowners who have been residing in their principal residence for five consecutive years out of the last eight and are purchasing a home to be their principal residence (“repeat buyer”), may be eligible for up to a $6,500 tax credit.-All U.S. citizens who file taxes are eligible to participate in the program.
Income LimitsHomebuyers who file as single or head-of-household taxpayers can claim the full credit ($8,000 for first-time buyers and $6,500 for repeat buyers) if their modified adjusted gross income (MAGI) is less than $125,000.-For married couples filing a joint return, the combined income limit is $225,000.-Single or head-of-household taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000 and $245,000 are eligible to receive a partial credit.-The credit is not available for single taxpayers whose MAGI is greater than $145,000 and married couples with a MAGI that exceeds $245,000.
Effective Dates-The eligibility period for the tax credit is for homes purchased after Nov. 6, 2009, and before May 1, 2010. However, home purchases subject to a binding sales contract signed by April 30, 2010, will qualify for the tax credit provided closing occurs prior to July 1, 2010.
Types of Homes that Qualify-All homes with a purchase price of less than $800,000 qualify, including newly-constructed or resale, and single-family detached, townhomes or condominiums, provided that the home will be used as their principal residence. Vacation home and rental property purchases do NOT qualify.
Tax Credit is Refundable-A refundable credit means that if the amount of income taxes you owe is less than the credit amount you qualify for, the government will send you a check for the difference.
-For example:-A first-time buyer who qualifies for the full $8,000 credit who owes $5,000 in federal income taxes would pay nothing to the IRS and receive a $3,000 payment from the government. If you are due to receive a $1,000 refund, you would receive $9,000 ($1,000 plus the $8,000 first-time homebuyer tax credit).-A repeat buyer who owes $5,000 would pay nothing to the IRS and receive $1,500 back from the government. If you are due to get a $1,000 refund, you would get $7,500 ($1,000 plus the $6,500 repeat buyer tax credit).-All qualified homebuyers can take the tax credit on their 2009 or 2010 income tax return.
Payback ProvisionsThe tax credit is a true credit. It does not have to be repaid unless the home owner sells or stops using the home as their principal residence within three years after the purchase.
The www.federalhousingtaxcredit.com site is being updated. Check the site next week for more detailed information on the new tax credit.
For more information, visit http://www.nahb.org/.
RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.
Don’t miss these top headlines on RISMedia.com:Where Are All the REOs?15 Billion in Credit Card Fees Charged! …and the New “Credit Card Act”Read more: http://rismedia.com/2009-11-08/obama-signs-homebuyer-tax-credit-extension/#ixzz0WJ3lfmPx

Cisco beats forecasts, points to recovery

2009-11-04T14:38:00.000-08:00

NEW YORK (Reuters) - Cisco Systems Inc (NasdaqGS:CSCO - News) posted a stronger-than-expected quarterly profit and signaled that recovery was well on its way, as businesses are investing in network equipment again after cutting back for the past year.
Chief Executive John Chambers gave a revenue forecast for the current quarter, its fiscal second, that topped Wall Street expectations and said that business conditions had hit bottom at least six months ago. Shares of Cisco rose 3.7 percent.
"Q4 fiscal 09, as we indicated in last quarter's conference call, looking back, was clearly the tipping point," Chambers told analysts on a conference call on Wednesday.
Cisco also said its board of directors authorized up to $10 billion in additional share repurchases, bringing its total outstanding repurchasing program to around $13.1 billion.
Cisco is the world's top vendor of routers, switches and other network equipment used by global businesses, including phone companies as well as governments. Many of those customers had put off large investment decisions during the recession, but analysts have said many were beginning to shift gears toward more spending to cope with growing Internet traffic.
Revenue in its fiscal first quarter, ended October 24, fell 13 percent from a year earlier to $9.0 billion. But that was up 6 percent quarter-on-quarter, and higher than the average Wall Street forecast of $8.7 billion, according to Thomson Reuters I/B/E/S.
The company forecast fiscal second quarter revenue to increase 1 percent to 4 percent from a year earlier, or a rise of 2 percent to 5 percent compared to the first quarter. The average Wall Street estimate for the second quarter had implied a revenue decline of 1.3 percent year on year.
"It's better than expected. On first blush, it's very good news, and will be good for the market, but we need to hear what they say about capital spending," said Jim Awad, managing director at Zephyr Management.
Net profit was $1.8 billion, or 30 cents a share, compared with $2.2 billion, or 37 cents a share, a year earlier. Excluding items, profit was 36 cents a share compared to 42 cents a share a year earlier, and higher than the average Wall Street forecast of 31 cents.
Shares of Cisco rose to $24.15 in after-hours trading from their Nasdaq close of $23.29. The stock has climbed more than 40 percent since the start of the year.
(Reporting by Ritsuko Ando, additional reporting by Ian Sherr and Caroline Valetkevitch; Editing by Bernard Orr and Tiffany Wu)

Sweet Home Oregon

2009-11-02T11:49:00.001-08:00

I just got back from Alabama. My family and I visited close friends. I love the South. The people are so sweet and if you want the best BBQ, visit the South. Pictured is my stuffed potato. It was stuffed with butter, sour cream, cheese, smoked beef brisket, BBQ sauce, ranch dressing, and topped with dill pickles. Do you believe that this calorie buster was only $6.99???

As you know, when ever I take a vacation, I love to check out the local real estate market. Well, no surprise, the homes are $50K-$100K cheaper than our homes here in the Portland Metro Area. The cost of living is much better there, but you cannot beat the lifestyle and weather here. I loving visiting the South, but love coming home to the Pacific NW even more!

Chip-maker Allvia buys Hillsboro plant

2009-10-24T13:38:00.000-07:00

What does this article mean for residents of Hillsboro? It means that when companys move to Hillsboro, more jobs are created and with jobs, housing is needed. Read through this and tell me your thoughts.

Chip-maker Allvia buys Hillsboro plant
Portland Business Journal

Chip-maker Allvia Inc. has acquired the 178,000-square-foot Hillsboro manufacturing plant once operated by Etec Systems Inc.
The Sunnyvale, Calif.-based company said over the next few months it will acquire the equipment to start chip-production in the plant some time next year.
It did not say how many people it plans to employ.
Allvia now manufactures in Sunnyvale. It will keep both facilities operating with a plan to eventually move full volume production to the Hillsboro site.
The company announced in February that it secured $5 million from private investors to expand its manufacturing capacity, bringing the total investment in the company to $25 million. It used a portion of those funds to acquire the Hillsboro property.
Allvia has not disclosed details of the acquisition. But commercial real estate firm Colliers International announced last week that the facility — at 21515 NW Evergreen Parkway and marketed as the “E-Tech Building” — was sold for $5.25 million to Jacques Ventures LLC of San Mateo, Calif.
The site was the previous home of Etec Systems Inc., a division of Santa Clara, Calif.-based chip-maker Applied Materials Inc. (Nasdaq: AMAT).
Applied Materials said in it’s 2008 annual report that it sold the Hillsboro building, 26 acres of Hillsboro land, and two Asian facilities, for $38 million in fiscal 2007.

Home sales rise 9.4 pct. in Sept., beat forecast

2009-10-24T10:56:00.000-07:00

Home sales rise 9.4 pct. in Sept., beat forecast
September home sales up 9.4 percent, beating expectations as tax credit spurs sales
By Alan Zibel and Alex Veiga, AP Real Estate Writers
On 11:57 pm EDT, Friday October 23, 2009

WASHINGTON (AP) -- Racing to complete their purchases before a tax credit for first-time owners expires, homebuyers pushed sales up last month by the largest amount in more than 26 years.

AP - Chart shows the 10 best and worst housing market sales percent change for August 2009 from the previous ...

After jumping 9.4 percent in September, home resales are up nearly 24 percent from the bottom in January, the National Association of Realtors said Friday. But the housing market's momentum could easily peter out if Congress doesn't extend the credit of up to $8,000 for first-time buyers beyond its current Nov. 30 deadline.
John Kindschi, a 33-year-old aircraft mechanic who lives north of Seattle, didn't want to miss out. After a yearlong search, he and his family bought a three-bedroom house for $206,000, completing the purchase last week.
"It was getting down to crunch time," he said. "We had no idea if the credit was going to be extended."
Nationwide sales rose to a seasonally adjusted annual rate of 5.57 million last month, from a downwardly revised pace of 5.1 million in August. It was the strongest month in two years and beat economists' forecast of 5.35 million, according to Thomson Reuters. Sales, however, are still down 23 percent from their peak four years ago.
In another positive sign, the inventory of unsold homes on the market fell almost 8 percent to 3.6 million. That's less than an eight-month supply at the current sales pace, and the lowest level since March 2007.
The competition for low-priced foreclosures has become fierce in places like Las Vegas and Southern California. Aldo Martin, 28 of Covina, Calif., had to put offers on 16 houses before having one accepted this week.
"We'd go look at eight houses and if we liked five of them, make offers," said Martin, a sales supervisor. "Your odds are better. We got aggressive."
Marty Rodriguez, owner of a Century 21 real estate brokerage east of Los Angeles, said half of her transactions last month were low-priced foreclosures and short sales, where the sales price is lower than the mortgage balance.
"You have so many buyers in that lower price range," she said. "Sometimes my agents are writing five offers for one buyer on different properties just trying to get one property -- and not getting accepted. It's a little crazy."
Still, economists caution that the pain from the worst housing bust since the Great Depression probably isn't over yet.
While home sales and housing construction have risen steadily after hitting bottom earlier this year, most economists believe that prices, which recently stabilized, will resume their descent. The median sales price last month was $174,900, down almost 9 percent from $191,200 a year earlier, and slightly lower than August's median of $177,300.
The main reasons prices are weak: Unemployment and foreclosures are still rising. With the current 9.8 percent jobless rate expected to rise as high as 10.5 percent next year, foreclosures will continue to set records.
Nationwide, more than 3 million households are either three months behind on their payments or in foreclosure, according to First American CoreLogic, a research firm.
Many delinquent borrowers are still being evaluated for help under the Obama administration's mortgage assistance plan. If they don't qualify, the odds are high they will lose their homes.
Fears about job losses are stifling some sales, said David Hudson, an agent with Exit Realty Platinum outside Atlanta.
"Buyers are still nervous," he said. "They're worried about buying a house, and then all of a sudden, I might not have a job."
A steady job as an operating room nurse is one reason Hope Carson, 41, is able to buy a home. She's planning to make an offer next week on a foreclosed property outside Atlanta and is hoping the deal will close in time for her to qualify for the tax credit.
After searching for about a month in a price range of about $140,000, she has narrowed her choices to two homes, both in foreclosure.
"Is there a little bit of guilt behind that? Absolutely," she said. "You know that somebody was forced to move out."
To entice more buyers like Carson, Senators Johnny Isakson, R-Ga., and Christopher Dodd, D-Conn., want to extend the tax credit through June 30, and expand it to include all home buyers, at an estimated cost of $16.7 billion.
Realtors and homebuilders are loudly in favor, arguing that the tax credit is crucial to get the housing market back on its feet.
"We are not there in terms of removing the consumer fear factor," said Lawrence Yun, the Realtors' chief economist.
However, some analysts say the tax credit may not be as critical to the housing market as real estate agents suggest. The Realtors association has "an incentive to talk up the effects of the credit as it is urging Congress to extend it, and it therefore may be exaggerating the credit's effects," wrote Nomura Securities economist Zach Pandl.
One potential roadblock to an extension also emerged this week.
There are concerns that some of the 1.5 million applications for the tax credit are fraudulent. The Treasury Department's inspector general for taxes questioned the legitimacy of some 100,000 claims for the credit, potentially including some illegal immigrants and 580 people under 18.
Alex Veiga reported from Los Angeles.

Fed survey: Housing, manufacturing drive recovery

2009-10-21T13:23:00.000-07:00

Fed survey finds housing, manufacturing improvements drive early stages of recovery

In this June 17, 2009 file photo, James Sellers, left, vice president of AUS Manufacturing Co.

WASHINGTON (AP) -- Improvements in housing and manufacturing are driving the early stages of the economic recovery, according to a Federal Reserve survey released Wednesday.

AP - FILE - In this June 17, 2009 file photo, James Sellers, left, vice president of AUS Manufacturing Co., ...
The Fed's latest snapshot of business conditions nationwide found "many sectors" of the economy either stabilized or logged modest improvements over the last six weeks. The pickups, though, often were from "depressed" levels of activity.
Still, the new report adds to evidence that a recovery has started from the worst recession since the 1930s. Only two of the Fed's 12 regions -- Atlanta and St. Louis -- reported weaker overall economic activity.
An $8,000 credit for first-time homebuyers boosted the housing sector. There's been concern among private economists and some lawmakers that recent gains in housing will fizzle out when the credit ends. It is slated to expire Nov. 30, although some in Congress are mulling an extension.
Meanwhile, factories increased production as businesses restocked depleted inventories. Part of that restocking was due to the now-defunct Cash for Clunkers rebate program, which caused a brief burst in car sales.
Both housing and manufacturing continued a "pattern of improvement that emerged over the summer," the Fed observed.
By contrast, the Fed said weakest link in the recovery was commercial real estate. Conditions were described as "either weak or deteriorating" across all 12 regions surveyed.
Consumer spending also remained weak, the Fed said.
Consumers, whose spending accounts for about 70 percent of economic activity, are expected to stay cautious given rising job losses, stagnant incomes and hard-to-get credit.
"Reports of gains in economic activity generally outnumber declines, but virtually every reference to improvement was qualified as either small or scattered," the Fed survey said.
For instance, Dallas cited slight improvements in residential real estate and at staffing firms. New York noted gains predominantly in manufacturing and retail. Philadelphia, Cleveland and San Francisco cited small pickups in manufacturing. Kansas City noted upticks at technology companies, while Richmond observed revenue gains at service companies.
The nation's unemployment rate climbed to a 26-year high of 9.8 percent in September, and is expected to top 10 percent this year. Economists predict it will rise as high as 10.5 percent by the middle of next year before slowly drifting down.
Districts reported "little or no increase to either price or wage pressures," but there were some references to downward pressures, according to the survey.
In a separate report, the Labor Department found that unemployment rose in 23 states last month. While layoffs have slowed, companies remain reluctant to hire. Forty-three states reported job losses in September; only seven gained jobs.
Many analysts believe the economy started to grow again in the third quarter at a pace of at least 3 percent, and is continuing to expand now. The government releases third-quarter results next week. If analysts are right, that would mark a turning point for the economy, which has contracted for a record four straight quarters.
The central bank's survey findings will figure into discussions when Fed Chairman Ben Bernanke and his colleagues meet Nov. 3-4. The Fed is expected to keep interest rates at record low at that time and probably into next year to help foster the recovery.
Inflation, meanwhile, was under wraps, the Fed report suggested. That gives the central bank leeway to keep rates low.
Competition, cautious consumers and expectations for a lethargic recovery mean companies won't be rushing to boost prices, the report said.
Known as the Beige Book, the survey does not include precise figures, but rather offers anecdotal snapshots of economic and financial activity nationwide.

By Jeannine Aversa, AP Economics Writer
On 3:45 pm EDT, Wednesday October 21, 2009

Who Made Our Nice Home???

2009-10-19T21:01:00.000-07:00

The other night I was getting ready to put my 3-year-old son to bed, and was telling my wife how much I appreciated her for making our home so nice. My son stopped what he was doing and replied, "No Dad, Arbor made our home nice!"

My wife and I had to laugh at our son's wit. For those of you who don't know I was an Arbor customer before I was an Arbor employee. As soon as our son started being interested in Bob the Builder, he began to ask us who built our house. With that, we told him the whole story about Arbor building our home from the dirt up...and not only building our home but our beautiful neighborhood as well. I guess that really stuck with him because (as hard as my wife works to make the inside of our home) Arbor will always get the credit for our house.

If you have ever worked with me (or come into look for a home in the future) you will notice my passion for my job and the company. Yes I love the job that I do, but part of the reason is that I believe in the product. I am not just a Realtor; I am a happy homeowner.

Stocks rise as earnings reports top expectations

2009-10-19T14:34:00.000-07:00

Stocks climb as earnings jump past expectations; Eaton, Gannett gain after results top views

By Ieva M. Augstums and Tim Paradis, AP Business Writers
On 5:27 pm EDT, Monday October 19, 2009

NEW YORK (AP) -- Investors are seeing the kind of earnings numbers that make them feel confident about stocks.

AP - Specialist Glenn Carell, right, works on the floor of the New York Stock Exchange Monday, Oct. 19, 2009. ...
The stock market stepped to new highs for the year Monday after a handful of earnings reports bolstered hopes that the economy is coming back sooner than many analysts had thought.
That is helping some investors move past a bout of nerves about whether expectations for the economy are stretched too far. The Dow Jones industrial average rose 96 points, while the Standard & Poor's 500 index rose but ended just shy of 1,100, having topped that level during the day.
Industrial equipment maker Eaton Corp. said it was seeing improvement in key markets and raised its full-year profit forecast. Newspaper publisher Gannett Co. managed to post a profit despite a sharp fall in revenue.
The gains came ahead of quarterly earnings released after the closing bell from Apple Inc. and Texas Instruments Inc. Both wound up beating forecasts.
Apple blew past expectations because of increased sales of the iPhone, while Texas Instruments' profit and sales came in above the improved forecast the chip maker issued just last month. Share of both tech companies gained in after-hours electronic trading.
The reports are adding to investors' expectations for the technology industry. Last week, Google Inc. and chipmaker Intel Corp. posted solid earnings. Many tech companies have strong balance sheets have large amounts of cash that have enabled them to weather the recession better than companies in other industries.
Caterpillar Inc., Coca-Cola Co. and DuPont are slated to report results before the opening bell Tuesday.
A drop in the dollar also helped push commodity prices higher, which in turn helped stocks of materials and energy companies.
Investors are relieved to see better results in a broad range of industries following some downbeat news last week from major banks, which reported rising loan delinquencies.
Burt White, chief investment officer at LPL Financial in Boston, noted that three of every four companies have topped analysts' expectations for earnings in the July-September quarter. While most have yet to report, the early results are a sign that companies are holding up better than many had predicted.
"The recovery is moving faster than analysts can sharpen their pencils and revise their estimates upward," he said.
The Dow rose 96.28, or 1 percent, to 10,092.19. The broader S&P 500 index rose 10.23, or 0.9 percent, to 1,097.91. For both indexes, it was the highest close since Oct. 3 last year.
The Nasdaq composite index rose 19.52, or 0.9 percent, to 2,176.32.
The day's advance came on the 22nd anniversary of the 1987 stock market crash known as "Black Monday," which saw the Dow plunge a record 22.6 percent on worries about interest rates and slowing economic growth.
Bond prices were mixed. The yield on the benchmark 10-year Treasury note fell to 3.38 percent from 3.42 percent late Friday.
Investors grew hopeful that Federal Reserve policymakers would be able to withdraw some of the money supporting the economy as conditions improved. That could help prevent inflation, which is a worry for investors because of the huge amounts of money the government has pumped into the financial system.
The New York Federal Reserve, which carries out the central bank's market operations, said it has been preparing plans for how it could begin weaning the economy from monetary stimulus.
The dollar mostly fell against other major currencies, while gold prices rose. The ICE Futures U.S. dollar index, which tracks the dollar against other major currencies, fell 0.3 percent. It is at its lowest level since August 2008.
Light, sweet crude rose $1.08 to settle at $79.61 per barrel on the New York Mercantile Exchange. The Reuters/Jefferies CRB index, a measure of commodities trading, jumped 1.3 percent to its highest level of the year.
Among companies posting earnings, Eaton rose $3.47, or 5.7 percent, to $63.89, while Gannett advanced $1.06, or 8.2 percent, to $14.06.
Apple rose $1.81, or 1 percent, to $189.86 in the regular session and rose 6.7 percent in electronic trading after its report. Texas Instruments rose 77 cents, or 3.4 percent, to $23.52 and added 2 percent in late trading.
Bob Jergovic, chief investment officer at CLS Investments in Omaha, Neb., said investors are now trying to determine whether a recovery in corporate profits will continue and, if so, whether that will help the overall economy if companies are more willing to hire and make investments.
"We're in that phase where the market has really got to sort it out," he said. "Can we make that handoff from a profit recovery to an economic recovery?"
More than two stocks rose for every one that fell on the New York Stock Exchange, where volume came to 1.1 billion shares compared with 1.4 billion Friday.
The Russell 2000 index of smaller companies rose 6.16, or 1 percent, to 622.34.
Britain's FTSE 100 rose 1.8 percent, Germany's DAX index rose 1.9 percent, and France's CAC-40 advanced 1.7 percent. Japan's Nikkei stock average fell 0.2 percent.

Dow closes above 10,000 for 1st time in a year

2009-10-14T14:56:00.000-07:00

Back on September 28th, I had predicted that the Dow would jump to 10k. Well here it is. Now where do we go?

Dow closes above 10,000 for 1st time in a year
DJ comeback: Stock market's best-known barometer closes above 10,000 for 1st time in a year

By Tim Paradis, AP Business Writer
On 5:49 pm EDT, Wednesday October 14, 2009

The best-known barometer of the stock market entered five-figure territory again Wednesday, the most visible sign yet that investors believe the economy is clawing its way back from the worst downturn since the Depression.
The milestone caps a stunning 53 percent comeback for the Dow since early March, when stocks were at their lowest levels in more than a decade.
"It's almost like an announcement that the bear market is over," said Arthur Hogan, chief market analyst at Jefferies & Co. in Boston. "That is an eye-opener -- 'Hey, you know what, things must be getting better because the Dow is over 10,000.'"
Cheers went up briefly when the Dow eclipsed the milestone in the early afternoon, during a daylong rally driven by encouraging earnings reports from Intel Corp. and JPMorgan Chase & Co. The average closed at 10,015.86, up 144.80 points.
It was the first time the Dow had touched 10,000 since October 2008, that time on the way down.
"I think there were times when we were in the deep part of the trough there back in the springtime when it felt like we'd never get back to this level," said Bernie McSherry, senior vice president of strategic initiatives at Cuttone & Co.
Ethan Harris, head of North America economics at Bank of America Merrill Lynch, described it as a "relief rally that the world is not coming to an end."
The mood was far from the euphoria of March 1999, when the Dow surpassed 10,000 for the first time. The Internet then was driving extraordinary gains in productivity, and serious people debated whether there was such a thing as a boom without end.
"If this is a bubble," The Wall Street Journal marveled on its front page, "it sure is hard to pop."
It did pop, of course. And then came the lost decade.
The Dow peaked at 14,164.53 in October 2007, then lost more than half its value after the financial meltdown last fall. At its low point, the average stood at 6,547.05. The breathtaking rally since then brings stocks to roughly break-even for the past 10 years.
On Wednesday, the Dow rose 144.80, or 1.5 percent, to 10,015.86, its biggest gain since Aug. 21 and highest close since Oct. 3 last year.
Broader indexes also climbed to 2009 highs. The Standard & Poor's 500 index rose 18.83, or 1.8 percent, to 1,092.02. The index, the basis of many mutual funds, is up 61.4 percent from a 12-year low in March.
The Nasdaq composite index rose 32.34, or 1.5 percent, to 2,172.23. It's up 71.2 percent since March.
So where does the market go from here?
Some market watchers see 10,000 as an illusion because there are still lingering threats to an economic recovery -- rising unemployment, weak consumer spending and a battered housing market.
The investors who have driven stocks higher since March are the pros: hedge funds and institutions whose furious selling hastened the collapse of the market in the first place.
And red flags are showing up in the technical charts that professional investors use as they make their trading decisions. The Dow sits about 18 percent above its average of the past 200 days.
"The market by all technical indicators is completely overbought, just like back in March it was completely oversold," said Rich Hughes, co-president of Portfolio Management Consultants in Los Angeles.
On the other hand, Wall Street analysts say 10,000 is more than just a number -- it can have legitimate psychological implications.
A recovering stock market soothes the psyche as people watch their portfolios and 401(k) retirement accounts being replenished. And if people start spending again, that may persuade more investors, including some reluctant pros, to go back into the market.
"Psychology plays a huge role in investing, so when you're trying to overcome the huge levels of panic and fear that we've seen over the last year, psychology shouldn't be discounted," said Carl Beck, a partner at Harris Financial Group.
Many investors, especially individuals, are afraid they'll put money into the market only to watch it disappear if stocks plunge again. It's happened before: In 1975, stocks rose 53 percent in less than four months after a recession. Then they lost 11 percent before climbing again in early 1976.
If stocks follow historical patterns, they could be nearing their peak. Assuming the recession technically ended this summer, as many economists believe, the Dow's surge since March puts it near where past rebounds have started to fade.
On top of that, there are still plenty of problems that could trip up the market. Companies posted better-than-expected earnings in the second quarter, but mostly because of cost-cutting, not the sales increases needed to keep growing.
Earnings reports from chip maker Intel Corp. and banker JPMorgan Chase & Co. gave the Dow its final push past 10,000.
JPMorgan, the first major bank to report third-quarter earnings, stoked the market's optimism as it easily beat Wall Street's expectations, reporting a profit of $3.59 billion for the July-September period. The stock, a Dow component, rose $1.50, or 3.3 percent, to $47.16.
Financial stocks have posted the biggest gains since the rally began, but they were also among the most decimated. JPMorgan is up 197 percent and Bank of America Corp. is up 492 percent.
Intel also beat analysts' estimates, reporting a smaller-than-expected drop in profits and sales after the market closed Tuesday. Intel rose 34 cents, or 1.7 percent, to $20.83.
Individual investors remain cautious. In August, well into the rally, they put $11 into bond funds for every dollar they put into stock funds, according to the Investment Company Institute, the mutual fund trade group.
But they appear to slowly be coming back to stocks. Retail brokerage TD Ameritrade reported an average of 431,000 trades a day in August, up from barely more than 300,000 when the market was sliding in January and February.
If the market can hold Wednesday's milestone, investors should grow even more confident.
"It wouldn't surprise me if it made Joe Main Street more comfortable," David Kelson, portfolio manager of Talon Asset Management in Chicago.
Bond prices fell as stocks soared. The yield on the 10-year Treasury note rose to 3.42 percent from 3.35 percent late Tuesday.
Oil jumped $1.03 to settle at $75.18 a barrel on the New York Mercantile Exchange.
The Russell 2000 index of smaller companies rose 12.24, or 2 percent, to 623.94.

Intel profit falls but outlook upbeat, stock jumps

2009-10-13T14:49:00.000-07:00

Intel profit falls but outlook upbeat, stock jumps
Intel profit falls 8 pct but chip maker offers better-than-expected guidance, shares leap

By Jordan Robertson, AP Technology Writer
On 5:26 pm EDT, Tuesday October 13, 2009

The world's No. 1 microprocessor maker said Tuesday that profit and sales both fell 8 percent in the July-September period, as the company was hurt by sluggish demand from businesses and lower prices for its chips. Intel has insisted things are improving, however, and offered better-than-expected guidance for the fourth quarter, sending its shares up nearly 5 percent.
As the first major technology company to report third-quarter earnings, Intel's numbers will lend insight into the strength or weakness of PC makers' demand for new chips. What the figures don't show, though, is whether PC companies are stocking up on chips to replenish low supplies, or whether they expect especially brisk sales of computers to consumers and businesses. That will begin to play out in the coming weeks, as the holiday season gets under way with a new edition of Windows available Oct. 22.
Intel said after the market closed that its net income was $1.9 billion, or 33 cents per share. Analysts expected 28 cents per share, according to a poll by Thomson Reuters. Last year, Intel's profit was $2.0 billion, or 35 cents a share, in the year-ago period.
Sales were $9.4 billion, better than Wall Street's forecast of $9.0 billion.
Intel had bumped up Wall Street's expectations twice. The first time was in August, when it raised its guidance, and the second was last month, when its CEO, Paul Otellini, predicted that PC sales could defy predictions by growing in 2009, which would avert the first year-over-year sales decline since 2001.
Still, the company's latest numbers show the recession continues to take a toll, even as Intel gets more skillful at wringing more out of its business.
The company's gross profit margin was 57.6 percent of revenue. Its previous forecast was for 51 percent to 55 percent of revenue, and in the last quarter the figure was 50.8 percent of revenue.
Gross margin is especially important for a manufacturing-intensive company such as Intel because it measures how well a company is controlling its costs. Making computer chips can be prohibitively expensive.
For the fourth quarter, Intel forecast sales of $10.1 billion, plus or minus $400 million. Analysts expected $9.5 billion.
Intel shares jumped 96 cents, 4.7 percent, to $21.45 in extended trading. Before the earnings report the stock had closed at $20.49, up 9 cents on the day.

Survey of top economists find most believe recession is over

2009-10-12T11:10:00.000-07:00

Survey of top economists find most believe recession is over

By Chris Isidore, CNNMoney.com senior writer
On 10:28 am EDT, Monday October 12, 2009

More than 80% of top economists believe that the recession that started almost two years ago is finally over. But most don't expect meaningful improvement in jobs, credit or housing for months to come.
That's according to a survey released Monday by the National Association for Business Economics (NABE). The group asked 43 top economists last month if they believe the battered U.S. economy has pulled out of the worst U.S. downturn since World War II. Those surveyed include economists from leading Wall Street firms and major corporations, as well as from highly respected universities and research firms.
Thirty-five respondents, or 81%, believe the recovery has begun. Only four, or 9%, believe the economy is still in a recession. The other four say they're uncertain.
Economists in the survey forecast that the U.S. economy grew at an annual rate of 3% in the three months that ended in September, though the official reading of gross domestic product won't be out for weeks.
And all of the economists surveyed expect the recovery to be slow and painful, leaving many people and businesses feeling the effects of the downturn for years to come.
The only organization that can officially declare the beginning or the end of a recession is the National Bureau of Economic Research. But that group doesn't make any sort of declaration until months after the fact, in order to take into account final readings of various economic measures such as employment, income and industrial production. For example, the NBER didn't declare that the recent recession had begun in December 2007 until a full year after the fact.
Lingering weakness
The NABE survey results echo comments made by many other prominent economists who have recently said they think the economy hit bottom at some point this summer.
Most notably, a recent statement from the Federal Reserve declared that economic readings "suggest economic activity has picked up following its severe downturn."
Still, the NABE survey found that economists are forecasting lingering weakness in the labor and housing markets, and that the tight credit markets will continue to be a drag on economic growth into next year.
Unemployment, which was at a 26-year high of 9.8% in September, is forecast to hit 10% during the last three months of this year, and stay there through the first quarter of 2010. By the end of next year, it's only expected to fall back down to 9.5%.
About 54% of those surveyed don't expect the economy to regain the jobs it lost during the recession until 2012, while another 38% expect that to take even longer. Just three of the economists that the NABE spoke to expect these jobs to come back in 2010 or 2011.
And many don't think the worst is over yet for housing either. About a third of economists believe that home prices won't bottom out until early 2010 or later, while a quarter of them believe the low will come in the fourth quarter.
Half of those surveyed expect the financial markets to continue to be a drag on the economy until next year, while 30% of them said that trend could continue into 2011.
The NABE last surveyed economists in May, and they were far less optimistic at the time. Only 18% of them thought the economy would recover in the last quarter of 2009, while 7% saw a turnaround sometime in 2010.

How Long Will Mortgage Rates Stay Low???

2009-10-08T12:58:00.000-07:00

So as I sit here in jury duty, I began surfing the net (don't worry, the case hasn't started yet). I came across this article about interest rates. What it basically says is that you need to buy a home before the rates go up! Take a read.

Mortgage rates remain below 5 percent

Freddie Mac: Rates on 30-year fixed mortgages stay below 5 percent for 2nd-straight week

On 11:59 am EDT, Thursday October 8, 2009

McLEAN, Va. (AP) --The average rate on a 30-year fixed mortgage was 4.87 percent, down from 4.94 percent last week, Freddie Mac said. The last time rates for 30-year home loans were lower was the week ending May 21, when they averaged 4.82 percent.
This week's average rate for 30-year mortgages remained above the record low of 4.78 percent established in the spring. Last year at this time, the 30-year fixed-rate mortgage averaged 5.94 percent.
Low rates make home buying or refinancing more attractive for consumers. Case in point: refinance applications climbed 18 percent from last week, the Mortgage Bankers Association said Wednesday.
By refinancing at current rates, borrowers could trim nearly $134 off their monthly mortgage payments on a $200,000, 30-year fixed-rate loan, Freddie Mac said.
"Such low rates are spurring mortgage demand," said Frank Nothaft, Freddie Mac's chief economist.
Still, borrowers may want to consider the Federal Reserve's recent announcement that it is slowing down a program intended to lower mortgage rates and boost the housing market. Analysts say mortgage rates should remain low for now but could eventually move higher, and homeowners who want to refinance mortgages shouldn't drag their feet.
Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day.
The average rate on a 15-year fixed mortgage fell to 4.33 percent from 4.36 percent last week, according to Freddie Mac. This week's rate on 15-year mortgages was the lowest since Freddie Mac started tracking it in 1991.
Rates on five-year, adjustable-rate mortgages averaged 4.35 percent, down from 4.42 percent a week earlier. Rates on one-year, adjustable-rate mortgages rose to 4.53 percent from 4.49 percent last week.
The rates do not include add-on fees known as points. The nationwide fee for loans in Freddie Mac's survey averaged 0.7 point for 30-year and 15-year mortgages, and 0.5 point for five-year and one-year home loans.

HGTV Visits Arbor Homes

2009-10-04T10:53:00.000-07:00

HGTV came and visited Arbor Crossing. They were shooting My First Place. It is where first time home buyers search out 3-4 separate properties that they want to live in. It was exciting to be able to showcase this beautiful Arbor Neighborhood. Keep your eye out for Arbor Crossing on HGTV's My First Place.

Scramble for $8K

2009-10-01T15:14:00.000-07:00

WASHINGTON (AP) -- Aspiring homebuyers rushed to take advantage of a tax credit for first-time owners that expires in November, driving up the number of signed sales contracts for the seventh straight month in August.

Construction spending also rose unexpectedly in August on the biggest jump in housing activity in nearly 16 years, another sign the real estate market is recovering from its four-year slump, data Thursday showed.
Sales and homebuilding are being fueled by a tax-credit of up to $8,000, low mortgage rates and cheap foreclosures. In some of the most hard-hit areas, like Phoenix and Las Vegas, there are bidding wars for deeply discounted properties. And in all but a few cities, home prices are slowly starting to rise, reversing their three-year descent.
To make sure first-time buyers can complete their purchases by the Nov. 30 deadline, real estate agents "have been pushing buyers to sign a contract at least a couple months in advance" according to Abiel Reinhart, an economist with JPMorgan Chase.
More than a dozen bills have been introduced in Congress to extend the credit, but it's unclear if lawmakers want to continue to subsidize the market.
The National Association of Realtors said Thursday its index of sales agreements rose 6.4 percent from July to 103.8, beating forecasts. It was the highest since March 2007 and 12 percent above a year ago. Economists surveyed by Thomson Reuters expected the index would rise to 98.6.
Typically there is a one- to two-month lag between a contract and a done deal, so the index is a barometer of future sales. However, new rules for home appraisals and rigid lending standards have scuttled many sales agreements recently. In addition, the index may also double-count some buyers who agree to purchase other homes after the first deal falls through.
These factors have made the index a less reliable gauge for completed sales. Despite a steady increase in the number of signed contracts this summer, for example, completed sales actually took an unexpected 2.7 percent dip in August.
"Perhaps the real question is how many transactions are being delayed in the pipeline, and how many are being canceled," Lawrence Yun, the Realtors' chief economist, said in a statement. "Without historic precedents, it's challenging to assess."
Pending sales were up 16 percent in the West and 8 percent in the Northeast. They were up 3 percent in the Midwest and nearly 1 percent in the South.
Home prices, meanwhile rose 1.2 percent from June to July, according to the Standard & Poor's/Case-Shiller home price index of 20 major cities. On a seasonally adjusted basis, prices rose in all but three metro areas, Las Vegas, Detroit, and Seattle.
Housing experts, however, remain divided on whether the price gains signal a definite bottom to the worst housing downturn in decades or just a brief respite from plummeting prices.

Index shows home prices rose for 3rd month in July

2009-09-29T12:21:00.000-07:00

AP - In this Sept. 22, 2009 photo, builder Jean Gagnon cuts siding panels while completing a new home in ...

NEW YORK (AP) -- Home prices rose again in July, new data Tuesday showed, a trend that will help ease the foreclosure crisis and slowly rebuild the wealth of millions of American homeowners.
The new direction for home prices, which declined for 36 months before turning around in June, reflects an increase in demand from homebuyers. Home resales have climbed for four of the past five months, driven by low mortgage rates, a tax credit for new owners and low-priced foreclosures.
Sales of newly built homes are up 30 percent from the bottom, but are off about 70 percent from the peak of four years ago. Sales of previously owned homes are nearly 14 percent higher, but are still down nearly 30 percent from their peak.
The Standard & Poor's/Case-Shiller home price index of 20 major cities rose 1.2 percent from June to a reading of 143.05, according to the seasonally adjusted data. Though home prices are still 13.3 percent below July a year ago, the annual declines have slowed in all 20 cities for the sixth straight month.
"No matter how you measure it, house prices looked to have bottomed, which is the much-needed ingredient required to bake this housing market recovery," wrote Jennifer Lee, economist at BMO Capital Market.
The index has risen at an 8 percent annualized rate in the three months to July, the best performance since early 2006, noted Ian Shepherdson, chief U.S. Economist for High-Frequency Economics.
The index, however, is down about 30 percent from the peak in mid-2006 and some analysts are calling for additional price declines over the next year, though more moderate than previously forecasted. And 16 million homeowners owe more on their mortgages than their homes are worth. Those homeowners are more likely to go into foreclosure if they lose their jobs because they can't sell unless their lenders agree to take the losses.
Fannie Mae said Tuesday nearly 4.2 percent of its home loans were at least three months delinquent in July, up from 3.9 percent in June.
Home prices are now at levels not seen since the third quarter of 2003. And prices in Las Vegas, Detroit and Seattle are still falling, on a seasonally adjusted basis.
Prices in Las Vegas, one of the most speculative markets during the boom, are down more almost 55 percent from their peak. In August, almost 80 percent of home resales in Nevada were either a foreclosure or a sale below the value of the mortgage, according to a survey by the National Association of Realtors.
The Detroit housing market is reeling from layoffs in the automotive industry. Seattle, by contrast, was one of the last areas to enter the downturn so prices there have yet to hit bottom.
And there are still several risks to the national housing recovery, including rising unemployment and foreclosures and the expiration of a tax credit for first-time homebuyers.
First-time homeowners can qualify for a tax credit worth 10 percent of the purchase price, up to $8,000, but it expires at the end of November. More than a dozen bills to extend the credit have been introduced in Congress, but it's unclear if lawmakers want to continue subsidizing the real estate market.
Real estate agents and homebuilders are lobbying hard for an extension. They point to continued areas of weakness, such as foreclosures, which now are being driven by job losses, which are also weighing on the minds of consumers. The Conference Board said Tuesday that its Consumer Confidence Index dipped unexpectedly this month to 53.1 after three months of gains, down from the revised 54.5 reading in August.
Nevertheless, there are clear positive trends in the housing markets. Home prices rose in 13 metro areas for at least three straight months. The biggest gains in July were in Minneapolis, San Francisco and Chicago.
Agents in those three cities say prices are stabilizing because there are fewer foreclosures and less inventory overall. Lower priced homes are also getting multiple bids.
"Now we're seeing standard sales ticking up and foreclosure sales are way down," said real estate agent Barb Van Stensel of Keller Williams Lincoln Square.
The Case-Shiller indexes measure home price increases and decreases relative to prices in January 2000. The base reading is 100; so a reading of 150 would mean that home prices increased 50 percent since the beginning of the index.

By J.W. Elphinstone, AP Real Estate Writer
On Tuesday September 29, 2009, 2:13 pm EDT

Will the DOW JONES Hit 10K

2009-09-28T16:48:00.000-07:00

It is interesting to see where we have come with the Dow Jones Industrial Average. To give you some insight, the DOW closed on May 26Th 1896 at 40.94. The thought back then was the DOW would never hit 300. Well it took 45 years, but the DOW closed at 381.17 on September 3 1929. At that time the new benchmark was 1,000. Right around when my grandfather celebrated his 3rd birthday (1929), I am sure they all thought that it would almost be impossible to hit 1,000. November 14Th 1972 (my brother was almost 1 year old) it did it, it hit 1,000! During the the 80's it hovered right around 2,000. It wasn't until the 90's it really did some amazing things. It went from 2,256.43 in 1989 to 10,006.78 in 1999.

Enough of the history lesson. Now here we are in 2009 and we are set to see the DOW hit 10k again. Does it mean we are healthy again, maybe not. Does it mean we are more confident as a county again, perhaps. Regardless what it means, we live in a country that is strong. Our poorest of the poor here in America are some times the richest of the rich in other countries. To put an exclamation on this point, I have a friend that lives in Russia. He is amazed that we have such big homes. In Russia, if you have a one bedroom (we in the US would consider this as a studio) we would be comfortable. Now, if you lived in a 2 bedroom (we in the US would consider this to be a 1 bedroom) we would be pretty well off. It makes me think of my Arbor Home. I live in a 3 bedroom home with a loft and just over 1800 sq. ft. of living space. In America, it is considered a modest home. Imagine how rich I look to my friend in Russia.

Just to be living in the USA makes you richer than most of the world. Enjoy this great country!

Last Days for $8k Commercial

2009-09-17T15:11:00.000-07:00

Why You Shouldn't Buy a Foreclosed or Short Sale Home

2009-09-16T13:22:00.000-07:00

Lately I have had people coming into Arbor Pass asking me about foreclosed or short sale homes. The above picture shows the nightmare that could happen. Not to mention, if you are banking on the $8K tax credit, don't hold your breath. You could wait up to 1 year to get your keys with a short sale. Take a good read at the below article.

Damascus man even took the kitchen sink from foreclosed home

by Nicole Dungca, The Oregonian
Monday August 24, 2009, 8:14 PM

Grigoriy Bogoslavets' kitchen once contained thousands of dollars in high-quality fixtures
DAMASCUS -- After stripping his foreclosed home of everything from the air conditioning system to the kitchen sink, Grigoriy Bogoslavets was convicted of a crime that is often witnessed but rarely reported.
The 33-year-old electrician pleaded no contest last month to aggravated theft after stealing more than $50,000 of property attached to his former Damascus home, one of the few such cases in Oregon or across the country to result in prosecution. He will be sentenced Sept. 22.
After foreclosure, the kitchen was stripped of nearly everything that could be removed, including the kitchen sink and cabinets.
Prosecutor Bryan Brock, who is handling the case for the Clackamas County district attorney's office, said he has never seen a similar indictment. Detective Jim Strovink of the Clackamas County Sheriff's Office called it a "very isolated case."
Departing homeowners' taking off with fixtures that are legally part of the house -- generally anything attached or installed -- is nothing new to real estate brokers. What's changing, especially in the nation's worst housing markets, is the recognition that such acts can be criminal.
Banks, which usually can recoup losses from insurance claims, rarely take the time and effort to report theft of home fixtures. But law enforcement officials say nearby residents, eager to preserve their own home values, are starting to turn in their former neighbors.
That's what happened in the Bogoslavets case. Neighbors tipped off police when they saw Bogoslavets return to his former home with a van after vacating the premises. Investigators discovered Bogoslavets had taken nearly everything he could remove, including the kitchen island, fireplace, bathtubs, the doorbell and electrical outlets.
In Phoenix, where average home values in some areas have dropped more than 50 percent since their 2006 high, the FBI has intervened. In April, members of the FBI's Mortgage Fraud Task Force arrested five people accused of stripping their foreclosed homes. Some of them advertised foreclosure sales on Craigslist, according to Julie Halferty, the task force supervisor.
Some local Arizona law enforcement agencies are also taking more of a hard line. The Surprise, Ariz., Police Department arrested a former homeowner who took items estimated at $20,000.
"If it's $100,000 or $15,000, it doesn't matter," Sgt. Mark Ortega said. "If we have proof that it was committed ... it's pretty simple."
In Oregon, stripping foreclosed homes down to the walls is becoming more of an issue just by virtue of increased foreclosures, said Carl Iams, the real estate broker who was assigned to the Bogoslavets' home.
Brock did not speculate on whether Oregon will see more of these arrests. But if Clackamas County law enforcement brings forward more strong cases, he said, the district attorney's office will prosecute them.
"It's a question of reporting it," Brock said. "In the past, we have not said no to these cases, we've just not had them reported."
In some cases, it can be difficult to prove a crime has occurred, such as when a homeowner removes fixtures after receiving a notice of default but before officially losing ownership to a bank or mortgage company. Under Oregon law, amenities secured to the home, such as toilets and fireplaces, are the property of the titleholder.
Bogoslavets was an exceptional case because of the amount he took, as well as his additional criminal charges. As part of a plea bargain, he pleaded no contest to four counts of first-degree aggravated theft for fraudulent dealings with an electrical contractor company. Prosecutors plan to recommend a sentence of nearly four years in prison.
Iams said he hopes that Bogoslavets' conviction will serve as a symbol for the thousands of Oregonians who could lose their homes this year.
"People knowing that criminal charges can be filed will hopefully serve as a deterrent," he said.
-- Nicole Dungca; nicoledungca@news.oregonian.com

TOPWRAP-A year after Lehman, Bernanke says recession likely over

2009-09-15T15:34:00.000-07:00

* Bernanke says U.S. recession likely over
* U.S. retail data lifts stocks, pressures bonds
* Banks of England and Canada say recovery to be slow (Updates with U.S. markets' closes; details of Lehman Brothers anniversary)
By Caroline Valetkevitch
NEW YORK, Sept 15 (Reuters) - A year after the Lehman Brothers collapse, Federal Reserve chief Ben Bernanke said on Tuesday the recession was likely over, while data supported hopes that recovery from the worst downturn in decades was advancing.
But Bernanke said the recovery would be slow and it would take time to create jobs. Similar warnings came from the Bank of Canada and Bank of England, whose governor also said the bank could cut the interest rate it pays on commercial banks' deposits. For more see [ID:nN1523355].
The comments came exactly one year after the collapse of Lehman Brothers investment bank, an event that set off the U.S. economy's worst recession since the 1930s and helped spark a global financial crisis.
"Even though from a technical perspective the recession is very likely over at this point, it's still going to feel like a very weak economy for some time," Bernanke said after addressing a Brookings Institution conference. Fed officials meet next week to review their policy options.
The U.S. Commerce Department said retail sales climbed 2.7 percent in August after declining 0.2 percent in July. It was the biggest monthly advance since January 2006 and well above expectations on Wall Street for a 2 percent increase.
"Retail sales show the recovery is here. This wasn't just autos, it wasn't just gasoline. This was the U.S. consumer getting out of their foxhole," said T.J. Marta, market strategist at Marta on the Markets in Scotch Plains, New Jersey. "This is indisputably a good number."
Readings on manufacturing in the New York region and on national producer prices also came in stronger than expected.
Stocks in Europe and the United States rose after the retail data, with the benchmark Standard & Poor's 500 index .SPX gaining 0.3 percent to end at 1,052.63, while U.S. Treasuries prices US10YT=RR fell, pulling benchmark yields back from two-month lows.
The S&P is up about 55 percent since hitting 12-year lows in early March, but investors have been eager to see more definitive signs that the economy is getting better.
In its monthly report, the Organization of Petroleum Exporting Countries, which left its world oil demand forecast for 2010 unchanged, also said a recovery will be slow and gradual, even though evidence shows the world economy should be improving.
Crude oil prices in New York CLV9 rose $2.07 to $70.93 a barrel.
In Germany, the ZEW survey showed a smaller-than-expected improvement in the country's investor morale.
The ZEW's expectations index for Germany rose to 57.7 from 56.1 in August, reaching its highest since April 2006, although economists had expected a bigger rise.
Adding to the mostly upbeat comments on the economy in the United States, President Barack Obama told autoworkers the U.S. economy was on the mend. [ID:nN1549500]
Even with signs of economic improvement, the rising U.S. unemployment rate has remained a top worry and autoworkers have been among the hardest hit by layoffs.
The Bank of Canada's deputy governor, meanwhile, said a smooth economic recovery in Canada is not yet assured and that the strength of the Canadian dollar is one factor that could derail a comeback. (Reporting by Reuters reporters worldwide; Editing by Dan Grebler)

Fed survey shows US recession may be over

2009-09-09T12:33:00.000-07:00

US: Federal Reserve survey shows worst recession since 1930s may be over

WASHINGTON (AP) -- Economic activity is stabilizing or improving in most of the U.S., according to a new government survey, adding to evidence that the worst recession since the 1930s is over.
The Federal Reserve's snapshot of economic conditions backs predictions by Fed Chairman Ben Bernanke and most other analysts that the economy has started to grow again in the current quarter.
In the survey released Wednesday, all but one of the Fed's 12 regions indicated that economic activity was "stable," showed "signs of stabilization" or had "firmed." The one exception was the St. Louis region, which continued to report that the pace of decline in economic activity appeared to be "moderating."
Looking ahead, businesses in most Fed regions said they were "cautiously positive" about the economic outlook.
The assessments of businesses on the front lines of the economy was brighter than those they provided for the Fed report in late July. At that time, most regions said the recession was easing its grip and some of them reported signs that activity was leveling off.
In Wednesday's survey, the Dallas region indicated that economic activity had "firmed." The Fed regions of Boston, Cleveland, Philadelphia, Richmond and San Francisco mentioned "signs of improvement." The Atlanta, Chicago, Kansas City, Minneapolis and New York regions described activity as "stable or showing signs of stabilization."
Analysts predict the economy is growing in the current July-September quarter at anywhere between 3 and 4 percent.
Most of that growth should come from more spending from businesses, which had slashed investments -- often by double-digits -- during the recession.
Consumer spending, however, is expected to turn up only because of the binge-buying of automobiles generated by the short-lived Cash for Clunkers program. Buyers were given cash rebates to trade in less efficient gas guzzlers.
The Fed's survey found that the majority of regions did report that the government's clunkers program "boosted traffic and sales." But aside from brisk businesses at auto dealerships, other merchants struggled. Consumer spending remained "soft" in most Fed regions.
Manufacturers in most regions, meanwhile, reported "modest" improvements. The San Francisco region said orders rose for semiconductors and other information technology products. Richmond, Atlanta, Chicago and Minneapolis reported increases or planned increases in automobile production. Several regions noted more production for pharmaceutical products.
Although the ailing residential real-estate market is still weak, it also flashed signs of improvements. The Fed regions of Chicago, Richmond, Boston and San Francisco observed an "uptick in sales." Most regions said buyer demand remained stronger at the low end of the housing market, although Philadelphia did note an "upturn in sales at the high end of the market."
The Boston, Cleveland, Dallas, Kansas City, Richmond and New York regions credited the first-time home buyer tax incentive with spurring sales. Most regions reported downward pressure on home prices, although Dallas and New York said that prices were "firming."
The commercial real-estate market, however, continued to drag. Demand for space remained weak and construction fell again in all regions.
On the jobs front, employment conditions "remained weak" in all the Fed regions.
The nation's unemployment rate climbed to a 26-year high of 9.7 percent in August. It is expected to top 10 percent this year.
Many economists predict that rising unemployment will keep consumers cautious. For the budding recovery to be durable, businesses will have to step up spending and investment, analysts say.
The Fed's survey found that staffing firms in Atlanta, Dallas, Richmond, Cleveland, Philadelphia, Boston, New York and Chicago did report a "slight pickup" in demand for temporary workers. That's an encouraging sign because employers will usually boost use of temp workers before they hire new employees.
Still, several regions noted businesses and local governments were imposing wage freezes or cutting compensation in some cases. With the labor market weak, employers aren't expected to be generous with wages, a force that will keep inflation low, the Fed report said. Expectations for a lethargic recovery also likely will prevent companies from jacking up prices, keeping inflation subdued, the report suggested.

By Jeannine Aversa, AP Economics Writer
On Wednesday September 9, 2009, 3:07 pm EDT

July pending home sales rise to 2-year high

2009-09-01T11:22:00.000-07:00

Pending US home sales rise for sixth straight month in July to highest level since June 2007

WASHINGTON (AP) -- A gauge of future U.S. home sales rose more than expected in July to the highest level in over two years as first-time buyers rushed to take advantage of a tax credit that expires this fall.
The report showed the housing market is rebounding faster than expected from its historic bust. Low prices and the looming expiration on Nov. 30 of a first-time homebuyers' tax credit of up to $8,000 have spurred sales. Prices in much of the U.S. have begun to rise from the depths of the slump.
"The overall trend toward stabilization is undeniable at this point," wrote Mike Larson, real estate analyst at Weiss Research.
The National Association of Realtors said Tuesday its seasonally adjusted index of sales contracts signed in July for previously occupied homes rose 3.2 percent to 97.6. It was the sixth straight increase, and 12 percent higher the same month last year.
Economists surveyed by Thomson Reuters had expected the index to edge up to only 96.5.
The index of pending home sales indicates how sales completed this month and next will turn out. Typically, there is a one- to two-month lag between a contract and a final deal. But delays in getting mortgages approved and appraisals completed have recently lengthened the time it takes to close a deal in many cases.
Analysts predict sales will drop off when the tax credit expires, or if mortgage rates rise from near-record lows. Foreclosures also continue to rise, and banks are forced to sell those properties at deep discounts, pushing prices down.
A 12 percent jump in sales contracts in the West and a 3 percent increase in the South drove July's overall increase. Sales fell in the Northeast and Midwest.
The Realtors group projects that around 2 million first-time buyers will take advantage of the credit this year, and says it is spurring 350,000 additional sales that wouldn't have happened otherwise.
Nationally, home prices in the second quarter posted their first quarterly increase in three years, according to the Standard & Poor's/Case-Shiller national index released last week. Prices are growing in some parts of the country, but "beware a rise in supply as frustrated would-be sellers see their chance," wrote Ian Shepherdson, chief U.S. economist at High Frequency Economics.
While home prices are still 30 percent below the mid-2006 peak, their new direction should bring relief to lenders, homeowners and buyers alike.
Falling property values have wiped out $4 trillion in homeowners' equity, and thousands have walked away from homes that are worth far less than their mortgage balance. But now, with prices stabilizing, many buyers who had been staying out of the market are coming off the sidelines.

By Alan Zibel, AP Real Estate Writer On Tuesday September 1, 2009, 11:51 am EDT

Are You Renting???

2009-08-31T15:48:00.000-07:00

Are you renting? If so, hit this LINK and plug in your rent. It will give you an accurate calculation if you should buy or continue to rent. I think that you will find it shocking how much you can truly afford. I look forward to hearing about your experience.

Donating Plasma

2009-08-29T10:32:00.000-07:00

As an agent for Arbor, my desire it to respond to phone calls and emails quickly (even on my days off). If you were unable to reach me on Friday morning, it was for a very good reason. Here is the story behind Friday morning:" On Friday my wife and I donated Plasma. I have donated before for the Red Cross, but never got paid for it. My wife and I decided to see how much we could get paid for donating. After about 20 minutes on the web, we found a place in Portland that pays: Biomat USA. On your first donation you receive $25 and on the second $40. We don't need the money, we just thought if we are going to donate, why not get paid?

So we left the kids with the grandparents and headed off early to Biomat. We needed to stand in line 30 minutes before they open to make sure we got in, it is that popular. We pulled up into the parking lot, immediately I wanted to leave. There was a very different variation of people that I was not used to. My wife said "no, we are doing it" and we got in line. We waited in line for over 30 minutes, then they opened the doors and rushed us in. When we first entered, it looked like the DMV back in LA California, lots of seats with blue tones on the walls. After signing in and getting a physical, I was placed on a bed away from my wife. Now here comes the very interesting part. All these people there were doing it for money. My wife and I would have done it for free to help save lives. We just wanted some fun money to go out to a nice lunch. But these people really needed the money. One guy that was donating, needed the money for his 5 hour old baby. Another needed the money because he just lost his job. My heart was breaking the longer I spent there. I was so sadden for these people that "need" to sell a part of their body to not go hungry, or for their children not to go hungry. How blessed I am to have a great job, that pays well and allows my children to never go hungry. You would think that these people would be down hearted about their situation, but no! They were upbeat and encouraging.

Now here comes the embarrassing part. So I am 50 minutes into donating and feeling good when all of a sudden, I felt dizzy and sick to my stomach. The nurse looked over at me and began to run to me. She said "are you okay?" I said NO! She called over 3 other people to help. They put my feet up, began fanning me with my chart and gave me an ice pack. I thought I was going to die. They shut off the machine that separated my plasma from my blood and took the needle out. I began to feel better. Everyone was looking at me (at least that is what it felt like). I was so humbled. After I was feeling better, a lot of the people that were donating ask if I was okay. Again I was humbled, because when I first walked in to the place I wanted to know if they were okay.

My wife and I each collected our $25 and left. As we were getting out of the parking lot, a man (who had just donated) asked if we could jump his car. We did. He was the father of 3 children (1 just 2 months old) and his car was really beat up. He really needed the money for his 3 kids. My wife and I left and went to our favorite BBQ restaurant Russell Street BBQ. We spent $25 at Russell Street and then bought a $25 gift card for my in laws for baby sitting. The same money that we paid for BBQ tofu and a gift card, was the same money that other donors were paying for diapers. I am very blessed and I am reminded to be very thankful for what I have!

July new US home sales up 9.6 percent

2009-08-26T10:57:00.000-07:00

New US home sales in July surge 9.6 pct, beating expectations in 4th straight monthly increase

By Alan Zibel, AP Real Estate Writer
On Wednesday August 26, 2009, 12:27 pm EDT

WASHINGTON (AP) -- Sales of new U.S. homes surged 9.6 percent in July, another sign the housing market is climbing back from the historic bottom it reached early this year. Driven by falling prices, the fourth-straight monthly increase was greater than expected.
The Commerce Department said Wednesday that sales rose to a seasonally adjusted annual rate of 433,000 from an upwardly revised June rate of 395,000. Sales are now up more than 30 percent from the bottom in January, but are still off nearly 70 percent from the frenzied peak four years ago.
The median sales price of $210,100, however, was down slightly from $210,400 in June and was off 11.5 percent from year-ago levels. Prices are still up from March's low of $205,100.
Last month's sales pace was the strongest since September and exceeded the forecasts of economists surveyed by Thomson Reuters, who expected a pace of 390,000 units.
In a kind of Cash for Clunkers effect, homebuyers are rushing to take advantage of a federal tax credit that covers 10 percent of the home price, or up to $8,000, for first-time owners. Home sales must be completed by the end of November for buyers to qualify.
Builders and real estate agents are pressing Congress for that credit to be extended. If it isn't, sales could reverse their upward trend.
Some builders are already seeing sales dip.
At A.F. Sterling Homes in Tucson, Arizona, sales dipped in July because the builder said it couldn't guarantee the homes could be finished in time to qualify, said Randy Agron the company's vice president,
"The real estate market is really a fragile thing," he said. "It's not the right time to take (the tax credit) away."
But still, the economy is healthier now, so sales are unlikely to fall back to the lows of last winter, even if the credit is discontinued, said Wells Fargo economist Adam York,
"People don't have the sense of panic and dread," about their futures, he said.
As sales rise, that's likely to make builders more confident about getting going on new projects, and that's likely to eventually lead to more jobs in the construction industry, which has been hurt badly by the recession.
"These are crucial elements of a sustainable recovery," David Resler, chief economist at Nomura Securities, wrote in a research note.
Each new home built creates, on average, the equivalent of three jobs lasting one year and generates about $90,000 in taxes paid to local and federal authorities, according to the National Association of Home Builders.
There were 271,000 new homes for sale at the end of July, down more than 3 percent from May. At the current sales pace, that represents 7.5 months of supply -- the lowest since April 2007. The decline means builders have scaled back construction to the point where supply and demand are coming into balance.
AP Real Estate Writer Alex Veiga contributed to this report from Los Angeles.

Consumer sentiment improves more than expected

2009-08-25T10:42:00.000-07:00

WASHINGTON (AP) -- Consumer sentiment rose more than expected in August and expectations hit the highest level since the recession began, indications that Americans' pessimism about the economy may be lifting.
The housing sector also showed signs of life as a national measure of home prices posted its first quarterly increase in three years.
The New York-based Conference Board said Tuesday its Consumer Confidence index rose to 54.1 from an upwardly revised 47.4 in July. Economists surveyed by Thomson Reuters had expected a slight increase to 47.5.
Still, the index is well below 90, the minimum level associated with a healthy economy. Anything above 100 signals strong growth.
Economists closely monitor confidence because consumer spending accounts for about 70 percent of U.S. economic activity. Consumer sentiment -- fueled by signs the economy is stabilizing -- has recovered a bit since hitting a record-low of 25.3 in February.
Many analysts expect the economy to grow 2-3 percent in the current July-September quarter, spurred by a more stable housing market and the Cash for Clunkers program, which has boosted auto sales.
But economists worry that without healthier consumer spending, the recovery may weaken next year.
The housing slump and a weak job market have made consumers reluctant to spend. But the outlook for jobs is improving, the Conference Board said, with fewer respondents saying positions are "hard to get," and more claiming they are "plentiful."
Consumers' expectations for the economy over the next six months rose to 73.5 from 63.4 in July, the highest level since December 2007, when the recession began. The consumer confidence survey was sent to 5,000 households and had a cutoff date for responses of August 18.
Sal Guatieri, an economist at BMO Capital Markets, said the jump in the expectations index meant consumers likely will spend more in the months ahead.
"It won't be a smooth ride, but with consumer confidence now tracking higher, the groundwork for a sustainable recovery appears to be in place," he wrote in a note to clients.
The housing sector also received positive news. The Standard & Poor's/Case-Shiller's U.S. National Home Price Index rose 1.4 percent in the second quarter from the January-March period, the first quarterly increase in three years. Home prices, while still down almost 15 percent from last year, are at levels last seen in early 2003.
The reports, along with President Barack Obama's reappointment of Ben Bernanke as Federal Reserve chief, sent the financial markets higher. The Dow Jones industrial average rose about 80 points in midday trading, and broader indices also gained.
Obama said Tuesday that his administration's $787 billion stimulus package, and the extraordinary efforts by Bernanke to pump trillions of dollars into the financial system, have helped turn the economy around.
"Our auto industry is showing signs of life," Obama said. "Business investment is showing signs of stabilizing. Our housing market and credit markets have been saved from collapse."
Jobs are a weak spot, however, and could limit future consumer spending if Americans remain concerned about layoffs or declining wages.
Still, the Labor Department reported earlier this month that the unemployment rate dipped for the first time in 15 months, and workers' hours and pay rose slightly in July. The unemployment rate slipped to 9.4 percent, from 9.5 percent, while July job losses slowed to a total of 247,000, the fewest in a year and a big improvement from June's 443,000.

By Christopher S. Rugaber, AP Economics Writer
On Tuesday August 25, 2009, 12:02 pm EDT

Stocks jump as Bernanke says economy near recovery

2009-08-22T10:15:00.000-07:00

(Bernanke the brain)

Stocks surge after Bernanke declares economy on verge of recovery, home sales jump

By Sara Lepro, AP Business Writer

On Friday August 21, 2009, 6:21 pm EDT

NEW YORK (AP) -- Federal Reserve Chairman Ben Bernanke said what investors wanted to hear, that the economy is indeed on the verge of recovery, and they responded with a rally that sent the major indexes to new highs for the year.
The Dow Jones industrials shot up 155 points Friday, closing above 9,500 for the first time since Nov. 4, and all the big indexes finished with gains of more than 1.5 percent. Meanwhile, Treasury prices tumbled, pushing yields sharply higher, as investors no longer felt they needed the safety of government debt.
The stock market's gains were broad, reaching across all industries, but the biggest jumps came from energy, industrial and material stocks as oil and commodities prices soared. Bank stocks also rose sharply.
Just nine days after the Fed declared the economy to be "leveling out" rather than contracting, Bernanke went further, saying, "the prospects for a return to growth in the near term appear good." Speaking at an annual Fed conference in Wyoming, Bernanke did warn that lending is not back to normal, and that the difficulty consumers and businesses are having obtaining loans will be a challenge. But his tone was the most optimistic it has been since the start of the financial crisis.
A bigger-than-expected jump in home sales also gave stocks a boost and helped send bonds lower. The National Association of Realtors said sales of existing homes rose 7.2 percent to a seasonally adjusted annual rate of 5.24 million in July, from a pace of 4.89 million in June.
It was the fourth straight monthly increase and the highest level of sales since August 2007. The rise in sales came amid a sharp decline in home prices.
The day's news ended a week of erratic trading on Wall Street. Investors have been struggling with concerns about consumer spending, but the combination of Bernanke's remarks and the home sales data pulled stocks out of the doldrums.
Still, while Bernanke's positive assessment on the economy was encouraging, the market's challenges, including rising unemployment and sluggish consumer spending, are certainly far from over. The market appears to be on an upward trajectory, but analysts cautioned that stocks will likely bounce around through at least the rest of the summer.
"The news isn't going to be all good from here on out," said Jordan Smyth, managing direct at Edgemoor Investment Advisors in Bethesda, Md.
The Dow rose 155.91, or 1.7 percent, to 9,505.96. The Standard & Poor's 500 index rose 18.76, or 1.9 percent, to 1,026.13, its highest close since Oct. 6. And the Nasdaq composite index rose 31.68, or 1.6 percent, to 2,020.90, reaching its highest close since Oct. 1.
For the week, the Dow rose 2.0 percent, the S&P 500 gained 2.2 percent, and the Nasdaq added 1.8 percent.
About four stocks rose for every one that fell Friday on the New York Stock Exchange where consolidated volume came to 5.88 billion shares, up from Thursday's 5 billion.
Bond prices tumbled. The yield on the benchmark 10-year Treasury note, which moves opposite its price, jumped to 3.56 percent, from 3.44 percent late Thursday.
The Russell 2000 index of smaller companies rose 12.83, or 2.3 percent, to 581.51.
In other signs of investors' growing confidence in the economy, oil prices touched their highest point of the year on hopes that energy demand will soon pick up. After nearing $75, light, sweet crude for October delivery rose 98 cents to settle at $73.89 a barrel on the New York Mercantile Exchange.
And the dollar, which, like Treasurys, is considered a safe-haven asset, tumbled against other major currencies.
While Bernanke's comments were clearly reassuring for the stock market, investors could quickly lose their optimism if one of their greatest concerns, consumer spending, shows more signs of weakness. The Fed's upbeat comments last week set off a rally that quickly stalled after a weak reading on consumer sentiment.
Next week, investors will get two key reports on consumer confidence that, if worse than expected, could easily upset the market's gains.
"We're not past the volatile stages of the market," said Lowell Pratt, president of The Burney Co., an equity management firm.
As job losses continue to mount, it will be difficult for consumers to feel comfortable about spending freely.
"Consumer spending normally is the driver of recoveries at the beginning," said Bob Baur, chief global economist at Principal Global Investors. "That's not happening this time."
"At some point, the market is going to ask to see more than just mixed data," he said. "It's going to want to see some real jobs produced and an end to job losses and some validation that the consumer isn't going to stay in a slump."
Analysts have long warned of an eventual decline in stocks after the market's massive jump since early March, during which major indexes have risen more than 45 percent off of 12-year lows. But the market has yet to see a significant pullback.
Overseas, Japan's Nikkei stock average fell 1.4 percent. Britain's FTSE 100 gained 2.0 percent, Germany's DAX index jumped 2.9 percent, and France's CAC-40 soared 3.2 percent.
The Dow Jones industrial average closed the week up 184.56, or 2.0 percent, at 9,505.96. The Standard & Poor's 500 index rose 22.04, or 2.2 percent, to 1,026.13. The Nasdaq composite index rose 35.38, or 1.8 percent, to 2,020.90.
The Russell 2000 index, which tracks the performance of small company stocks, rose 17.61, or 3.1 percent, for the week to 581.51.
The Dow Jones U.S. Total Stock Market Index -- which measures nearly all U.S.-based companies -- ended at 10,463.53, up 223.01, or 2.2 percent, for the week. A year ago, the index was at 13,185.26.

Homebuilder sentiment index rises in August

2009-08-17T10:41:00.000-07:00

NEW YORK (AP) -- The National Association of Home Builders says its housing market index rose in August to the highest point in more than a year.
The Washington-based trade association said Monday the index rose one point to 18, a level not seen since June 2008.
The reading for current sales conditions was unchanged at 16, while traffic by prospective buyers rose three points to 16. The index for expected sales over the next six months jumped four points to 30, signaling that builders think the worst of the housing slump is over.
The report reflects a survey of 474 residential developers nationwide.
Index readings lower than 50 indicate negative sentiment about the market. The last time it was above 50 was in April 2006.

On Monday August 17, 2009, 1:02 pm EDT

New Signs Of Life In Housing

2009-08-15T10:42:00.000-07:00

Steve Hagenbuckle, managing principal for TerraCap Partners, has stated some interesting points. Listen to what Steve says and let me know what you think: New Signs Of Life In Housing

New Homes for the Tax Credit of $8,000

2009-08-12T13:24:00.000-07:00

Above you will find a picture of homes that will be done before the tax credit of $8,000 goes away. Arbor has really thought ahead to make sure we have enough inventory to sell for those that are going to take advantage of the tax credit. If you are still confused on how the tax credit works, hit this LINK that will answer all your questions.

On another note, it's official, the Feds believe that we are now working our way up out of the recession: "Stocks jump as Fed raises view of economy." I will tell you that if you are with a company that has survived and maybe even thrived in this economy, you are with a great company. I love the direction that Arbor is going. While other builders are running for the hills selling or foreclosing on land, Arbor is doing just the opposite. So the big question is, what will the new home market look like in 3 years here in the Portland Metro. Area? My prediction will be that Arbor will continue to be the number one builder in Oregon and will have the prime real estate property that everyone wants. As I have said in the past, Arbor is a forward thinking company.

Come see me or call (503-888-0133) to see what we have available for sale to meet the tax credit deadline of November 30, 2009.

A Las Vegas Vacation

2009-08-08T11:04:00.000-07:00

My wife and I went on a 5 day vacation to Las Vegas w/out the kids (the photo is me in front of the NY hotel)! It was amazing and we didn't loose a penny (we don't gamble).
Being in the Real Estate business, I always have the housing market on my brain. As we flew in, I noticed plots of land that had a few homes on it and then just vacant lots. It looked as if the builders started building, ran out of money or foreclosed on the land and walked away. Now these poor people that purchased have less than a half built neighborhood. The scene of empty roads with dirt lots made me so sad. It makes me so proud to work for Arbor. It is nice to be selling homes and know that Arbor will be able to finish beautiful neighborhoods because we are a reputable builder that positioned ourselves very well for this market. With that said, it looks like the worst is behind us in this recession. Look at the article below.

It is good to be back to the Pacific NW!

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NEW YORK (AP) -- The economy's most vexing problem, unemployment, is showing the first signs of easing. And Wall Street is celebrating.
Major stock indexes jumped more than 1 percent Friday after the government said the nation's unemployment rate unexpectedly fell in July for the first time in 15 months and that employers cut fewer jobs. Bond prices fell, driving yields higher as investors left the safety of Treasurys.
The Labor Department report handed investors the best evidence yet that the economy could be climbing out of the recession. Analysts widely consider unemployment the biggest obstacle to a recovery in the economy, which is driven by consumer spending.
The surprise figures injected new life in a monthlong rally and provided validation for traders who have been betting since March that the economy is healing. The Dow Jones industrial average rose 114 points to cap its fourth straight weekly gain. The Dow is at its highest level since early November.
The government said employers shed 247,000 jobs in July, the fewest in a year. Economists had expected 320,000 lost jobs. The unemployment rate dropped to 9.4 percent from 9.5 percent in June, rather than rising to 9.6 percent as forecast.
"It really gave the market the proof that it needed to see," said Burt White, chief investment officer at LPL Financial in Boston.
The report is often the most anticipated bit of economic news each month on Wall Street and nervousness about what it would reveal held stocks to modest moves most of the week. The exception came Monday when Ford Motor Co. said its monthly sales rose for the first time in nearly two years because the government's cash for clunkers program was drawing customers. That, and good news about manufacturing, construction and banking, sent the Standard & Poor's 500 index over 1,000 for the first time in nine months.
With the pop Friday, the S&P 500 index is up 14.9 percent in only four weeks and 49.4 percent from a 12-year low in early March.
Still, some analysts say the gains have come too quickly and question whether an economic rebound can ever live up to the expectations investors are now setting.
"We've run very fast, very quickly," said Marc Harris, co-head of global research for RBC Capital Markets in New York. "I think we're due to take a breath."
The Dow rose 113.81, or 1.2 percent, to 9,370.07. The broader S&P 500 index gained 13.40, or 1.3 percent, to 1,010.48, while the Nasdaq composite index rose 27.09, or 1.4 percent, to 2,000.25.
About 2,300 stocks rose on the New York Stock Exchange, while about 700 fell. Consolidated volume rose to 7 billion shares from 6.8 billion Thursday.
For the week, the Dow added 2.2 percent, the S&P 500 index rose 2.3 percent and the Nasdaq rose 1.1 percent.
Meanwhile, bond prices fell as the jobs reading limited demand for the safety of government debt. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.86 percent from 3.76 percent late Thursday.
Financial and retail stocks rallied Friday along with the broader market.
Insurer American International Group Inc. posted its first quarterly profit since 2007. The insurance giant, which is now majority owned by the government, rose $4.61, or 20.5 percent, to $27.14.
The jump in retail stocks came a day after many posted lackluster July sales. A drop in unemployment could make consumers feel more confident about making purchases, which could help the recovery along. Their spending accounts for more than two-thirds of U.S. economic activity. Macy's Inc. rose 98 cents, or 6.5 percent, to $15.99.
Analysts say some of the market's recent gains are tied to short-covering, in which investors have to buy stock after having earlier sold borrowed shares in a bet they would fall.
On other days, selling has been contained because investors don't want to miss a rally that has surprised many traders with its strength. On Wednesday, the Dow fell only 39 points but it was the biggest drop in a month.
Investors will be looking for more insight into the economy when the Fed's interest-rate committee concludes a two-day meeting on Wednesday. It is unclear when policymakers will decide the economy is strong enough to handle rate hikes that will be needed to keep inflation in check.
Light, sweet crude fell $1.01 to settle $70.93 a barrel on the New York Mercantile Exchange.
The Russell 2000 index of smaller companies rose 14.78, or 2.7 percent, to 572.40.
The dollar mostly rose against other major currencies, while gold prices advanced.
Overseas markets also rallied on the U.S. jobs report. Britain's FTSE 100 rose 0.9 percent, Germany's DAX index gained 1.7 percent, and France's CAC-40 rose 1.3 percent. Early Friday, Japan's Nikkei stock average closed with a gain of 0.2 percent.
The Dow Jones industrial average closed the week up 198.46, or 2.2 percent, at 9,370.07. The Standard & Poor's 500 index rose 23.00, or 2.3 percent, to 1,010.48. The Nasdaq composite index rose 21.75, or 1.1 percent, to 2,000.25.
The Russell 2000 index, which tracks the performance of small company stocks, rose 15.69, or 2.8 percent, for the week to 572.40.
The Dow Jones U.S. Total Stock Market Index -- which measures nearly all U.S.-based companies -- ended at 10,416.26, up 269.24, or 2.7 percent, for the week. A year ago, the index was at 12,905.73.

By Tim Paradis, AP Business Writer
On Friday August 7, 2009, 6:01 pm EDT

Cash for Rundown Homes

2009-07-31T12:03:00.000-07:00

Have you heard of cash for clunkers? I am starting a campaign called "Cash for Rundown Homes." With this new government back program, people with homes that are rundown, the government would buy the home from you, give you $15,000 and you could buy a new Arbor Custom Home. Wouldn't that be great!!!

If you are interested in the "Cash for Clunkers" program hit this Link.

PS I doubt the government would ever do this, but it is food for thought.

Home price index of 20 cities in 1st monthly rise since 2006

2009-07-28T15:07:00.000-07:00

It seems like the good news keeps coming. This is definitely a silver lining. I am excited to be working for Arbor who prepared for bad times during good times and now are preparing for good times during bad times. It looks like good times are around the corner. Read the article below.

By Les Christie, CNNMoney.com staff writer
On Tuesday July 28, 2009, 2:42 pm EDT

The value of U.S. homes grew on a monthly basis in May for the first time in nearly three years, according to 20-city index released Tuesday.
The month-over-month increase was 0.5%, according to the report from financial data company Standard & Poor's and economists Case-Shiller. It was the first increase in the monthly index since July 2006.
On an annual basis, home prices in the 20 cities fell 17.1%, but it was the second straight month that the year-over-year decline lessened.
"This could be an indication that home price declines are finally stabilizing," said David Blitzer, chairman of the index committee S&P, in a prepared statement.
While acknowledging that the report was good news, Mark Zandi, chief economist for Moody's Economy.com, downplayed the importance of a single month's statistics.
"I think it's a temporary respite," he said. "It reflects the recent decline in foreclosure sales, and prices will continue to fall over the next several months."
Robert Shiller, the Yale economist who co-founded the index and who's famous for warning that the housing boom was, in fact, a bubble, said the decrease in foreclosure sales does show up in the index statistics as a plus for home prices. That's one reason he did not want to sound too optimistic; foreclosures could take off again.
"And we could get more economic bad news, but it does look encouraging," he said.
He added that he thought that Washington's efforts have boosted the nation's spirits, an important factor for the housing market.
"The government has done a lot to support the housing market," he said. "Confidence has improved. People are talking about 'green shoots.' People are thinking it's time the recession came to an end. The stock market is up."
Cleveland gains: The improvement in the index was as broad as it was deep, with 13 metro areas showing gains, compared with eight in April. Two, New York and Tampa, Fla., showed no change.
The biggest winner was long-suffering Cleveland, where prices rose 4.1%. The city still falling the most was Las Vegas, where prices declined 2.6%.
The report added to the list of positive housing market indicators. These include rising new home sales, increased home building and increased pending sales.
Paul Bishop, the managing director of research for the National Association of Realtors, was glad to see the upturn but did not want to overemphasize the results of a single month, saying the economy is not out of the woods yet.
"Job losses could continue after the recession ends," he said. "That's where the economy intersects with consumers in the most tangible way. Until consumers have some level of confidence that the economy is improving, many will be reluctant to buy."
Washington's goal: Stabilizing the housing market has been a primary goal of Washington policy makers. Congress has tried to stimulate homebuying by creating a temporary tax credit of $8,000 for people who have not owned a home for at least three years.
The administration has also tried to tackle the foreclosure problem, creating a program to help mortgage borrowers avoid defaulting on their loan payments and losing their homes.
Zandi added that lenders are still figuring out the administration's foreclosure prevention plan, and have suspended the foreclosure process for many borrowers in default. That means fewer distressed properties, which tend to bring in lower prices, than usual.
One of the most positive things the government has done, according to Shiller, was to take control of the failing mortgage companies Fannie Mae and Freddie Mac.
These were government sponsored enterprises that guaranteed a flow of mortgage lending by buying or backing mortgages in the secondary market. Without government backing up these companies, mortgage lending would have dried up, which would have devastated home sales.
Lower prices: Prices have also fallen so far in so many places that it's drawing people back into the market.
In Las Vegas, prices are off about 53% from their peak, set in August 2006. Phoenix prices are down 54%.
Overall, the 20-city index is down more than 32% from its high.
Interest rates were very low in May, which also could have helped the housing market. The rate for a 30-year mortgage was well below 5% during the month, which encouraged buyers and drove up demand.
Zandi is hopeful that the market is stabilizing. "It feels like the cycle is winding down," he said. "I think it depends on how well the mortgage modification plan will work and I'm guessing it will work reasonably well."
One possible scenario, according to Shiller, is that home price declines end and then nothing happens for several years, the "L-shaped" recovery.
"Then, we can stop talking about home prices and get onto more interesting topics," he said