“And that’s going to make it even harder for the staggering housing market to recover. According to CNNMONEY.com

NEW YORK (CNNMoney.com ) — Prime mortgages are starting to default at disturbingly high rates – a development that threatens to slow any potential housing recovery.

The delinquency rate for prime mortgages worth less than $417,000 was 2.44% in May, compared with 1.38% a year earlier, according to LoanPerformance, a unit of First American (FAF, Fortune 500) CoreLogic that compiles and analyzes residential mortgage statistics.

Delinquencies jumped even more for prime loans of more than $417,000, so-called jumbo loans. They rose to 4.03% of outstanding loans in May, compared with 1.11% a year earlier.

And prime loans issued in 2007 are performing the worst of all, failing at a rate nearly triple that of prime loans issued in 2006, according to LoanPerformance.

“The extent of how bad these loans are doing is very troubling,” said Pat Newport, real estate economist with Global Insight, a forecasting firm.

Washington Mutual (WM, Fortune 500) CEO Kerry Killinger said last month that the bank’s prime loan delinquencies are on the rise. As of June 30, 2.19% of the prime loans issued by WaMu in 2007 were already delinquent, compared with 1.40% of prime loans issued in 2005.

Also last month, JP Morgan Chase (JPM, Fortune 500) CEO Jaime Dimon called prime mortgage performance “terrible” and suggested that losses connected to prime may triple. For the second quarter, the bank reported net charges of $104 million for prime rate delinquencies, more than double the $50 million recorded three months earlier.

Prime loans are just the latest class of mortgages to suffer a spike in failure rates. The first lot to go bad was, of course, subprime mortgages, whose problems set the housing meltdown in motion. Next were the Alt-A loans, a class between prime and subprime loans that doesn’t require strict documentation of a borrower’s assets or income.

Now, as prime loans are added to the mix, the resulting foreclosures could haunt the housing market for a long time, according to Global Insight’s Patrick Newport.

“Home prices will drop for quite a while – maybe several years,” he said.

Prices are already off nearly 20% from their 2006 highs, according to the S&P/Case-Shiller Home Price index.

And there’s a strong inverse correlation between home prices and defaults, according to Lawrence Yun, chief economist for the National Association of Realtors.

“It’s a feedback loop,” he said. “Price declines lead to more defaults, which leads to more price declines.”

More foreclosures will add to an already massive oversupply of homes on the market. Inventories are up to about 11 month’s worth of sales at the current rate.

Indeed, about 2.8% of all homes for sale were vacant as of June 30, according to Census Bureau statistics. That’s up about 50% from three years ago, and near historic highs.

The failure of prime mortgages will also make it more difficult for new borrowers to find affordable loans – and that will slow sales even more. Lending standards have been tightening for months, but if prime loans start to look risky, lenders will be even more conservative about who gets a mortgage.

About 60% of the loan officers surveyed reported that they tightened lending standards for prime mortgages during the first three months of 2008, according to the April 2008 Senior Loan Officer Opinion Survey on Bank Lending Practices from the Federal Reserve, which is released quarterly.

That number will likely be even higher for the second quarter, according to Mike Larson, a real estate analyst for Weiss Research. “It’s already harder and more expensive to get loans,” he said. “Lenders pull in their horns when things go south.”

While easy credit fueled the housing boom, restricted credit is certainly contributing to the bust.

“Eventually,” said Newport, “time will break the cycle. Pricing will drop enough to attract more buyers, and inventories will decline.”

But there will probably more hard times ahead before markets come back into balance and recovery begins. ”

Buyers with good credit & job ? Could that be a good time for you to buy? Any questions? Call this Realtor Gladys at 610-972 3545

This Article is a Direct Quote From CNNMoney.com

CNNMoney.com) — Home building fell sharply in July to a 17-year low, according to government readings released Tuesday that offered fresh signs that the battered real estate market has yet to hit bottom.

Housing starts plunged 11% to an annual rate of 965,000 from a revised 1.084 million pace in June, according to the Census Bureau report. Economists surveyed by Briefing.com had forecast starts would fall to a rate of 960,000.

Permits – often seen as a sign of builders’ confidence in the housing market – tumbled 17% to an annual rate of 937,000 from a revised 1.138 million in June. Economists had forecast that permits would come in at 959,000.

The sharp percentage drop from June was due partly to a jump in multi-family home starts and permits during that month. Single-family home starts and permits slipped only slightly from the June level. But the single-family starts were also at a 17-year low in July, while single-family permits fell to a level not seen since the 1982 recession, reaching a rate of only 584,000 homes in July.

The sharp fall in building activity suggests that home building will continue to be a drag on the economy in the second half of 2008. Earlier this year, many economists hoped that building activity would bottom out this summer and start to show signs of improvement.

In the second quarter, the drop in home building took 0.6 percentage points off gross domestic product, the broad measure of the nation’s economic activity. It marked the 10th straight quarter that home building has been a drag on GDP.

But the continued drop in building could be just what the battered real estate market needs. One of the biggest problem for sellers is a glut of unsold homes on the market. Since demand for homes remains weak, the glut will only ease if fewer new homes are built.

In June, builders faced a median wait of 8.4 months to sell a completed home, the longest delay in selling time in 25 years, according to a separate Census Bureau report issued recently.

David Seiders, chief economist for the National Association of Home Builders, says he’s hopeful the historically low levels of single-family permits is a sign that the glut of homes on the market could finally start to decline.

Seiders said he’s hopeful that the market for new homes will hit bottom in late 2008 or early 2009. But he added that his forecast could prove optimistic given other problems, such as rising job losses and the credit crunch. And the continuing rise in foreclosures adds to the glut of homes available for sale, particularly in markets such as California and Florida.

“We’re dealing with a weakening economy in the second half of this year, and early ‘09 doesn’t look that great either,” Seiders said. “We don’t have any numbers that really show stabilization in the housing market yet.”

The government report on housing starts and permits comes the day after a survey of builder confidence by the National Association of Home Builders remained at a record low in August. Only 5% of builders said the current market is good, 8% said they expected a favorable market in the next six months and fewer than 2% said they were seeing strong traffic from potential buyers.

The downturn in housing and building has hammered the results of most of the nation’s major builders. Late last month Centex (CTX, Fortune 500), which is the No. 2 builder by revenue, reported a larger-than-expected loss and warned it was seeing no improvement in the home building market.

Most builders have reported larger than expected losses, although Pulte Home (PHM, Fortune 500), the largest builder by revenue, did slightly better than forecasts. Only one major builder, NVR (NVR, Fortune 500), has reported a profit through the current downturn, although its earnings have plunged.

As a group, the revenue of the nation’s eight largest home builders has plunged 37% over the last year. Analysts surveyed by Thomson Reuters are forecasting another 36% drop in revenue over the course of the next 12 months. 

A longterm Giant, of the Lehigh Valley, and in the world, Mack Trucks in Allentown since 1905, is relocating to Greensboro North Carolina. Where it’s Mother Company, Volvo of Sweden has established successful headquarters’ roots.

This move although heavily “costing” to many Lehigh Valley individuals , businesses & Local Real Estates, is by design, to improve the company’s effectiveness and competitiveness. 

According to it’s CEO, “the company’s restructuring, beginning later on this year and continuing through 2010, will result in 493 new jobs paying an average salary of more than $73,800.00 in addition to health and insurance benefits”

The company sold 9 percent of the heavy truck market. And employed  4,241 people.

Most likely, Mack Trucks will take up space on the Volvo Trucks campus near Piedmont Triad International Airport initially.

Some interesting releases from NC say that “For each year the company meets required performance targets, the state will provide a Job Development Investment Grant equal to 60 percent of the state personal income  taxes resulting from the creation of new jobs. Should the company create the jobs called for under the agreement and sustain them for nine years, the agreement could yield as much as $8.5 million in maximum benefits for Mack Trucks.”

Mack is a Welcome Success to North Carolina and a Sad Loss to the Lehigh Valley, specifically Allentown.

 I Personally, encourage any person relocating to an “unknown Area” to them, either into or out of the Greater Lehigh Valley Area, to check out locations that accept month to month leases. Move there, check the neighborhoods more thoroughly. People, safety, schools, entertainments, noise, polution etc…

It does not matter what y & Z tells you about the Area, it is ultimately your decision as to where you and your family would enjoy living.

Buying a home is a Big Investment; it also is a Longterm Commitment. Please be careful not to delve into a very serious mistake, basing the foundation of your move on someone else’s experience.

Ironically, on a smaller scale, I also discourage people from rushing into hanging pictures paintings and photos, on the walls. Live in the house for a month and two before you make a decision to start digging holes in the walls and ruining your paint. Make sure that the location is exactly where, you want everything to go.

Patience is a Rewarding Virtue. Good luck.

Please contact this Realtor: Gladys with any Questions or Comments.

How to win the battle against lawn disease. This Article is written by:                              JOE PROVEY AND KRIS ROBINSON, from Popular Mechanics“Good Care Practices

To keep your lawn from becoming a host, choose the right grass for a given location and keep it healthy. Given the wide range of cultivars (cultivated varieties) available today, you have a good chance of avoiding certain diseases right from the start.

Well-aerated lawns with good drainage and air circulation will experience fewer moisture problems that invite disease. Avoid frequent, light waterings that encourage shallow root growth and drought stress. Watering late in the day leaves a wet grass canopy that’s conducive to fungal growth, and excessive use of high-nitrogen fertilizer promotes lush top growth that’s more prone to disease. Using a dull mower blade shreds grass tips, providing an entry point for infection.

The best time to assess your turf’s state of health is before mowing. Take notice of any areas that appear wilted or off-color, but keep in mind that these problems can be caused by things other than disease. A general browning out of cool-season grass during summer is most likely a result of its own protective response to drought and heat. Dull, wilted, bluish-gray turf may simply be a sign that it’s time for watering, and general yellowing and stunted growth may be due to a lack of iron or nitrogen.

Regular observation of your lawn is important if you want to catch early disease symptoms before they disappear. Look for spots or banding, color changes, or signs of decay on grass blades. Give the grass a tug to check for rot. Finally, come out early in the morning while the lawn is damp with dew to look for signs of fungal mycelium – fine, cobweb-like threads that will disappear with the day’s heat and sun. If you’re stumped by symptoms, take a sample to a reputable nursery, or consult your nearest Cooperative Extension Service agent or state university plant-pathology department.

When disease does get a foothold in your lawn you need to take immediate steps to contain it. Bag your lawn clippings and don’t put them in your compost pile. Avoid walking through infected turf, especially when it’s wet.

In addition to controlling disease through cultivar choices and environmental strategies, research has shown that microorganisms in organic composts can help in certain cases. Recommended sources for such top-dressings are composted manure, sludge (such as Milorganite) or agricultural waste. These materials are often available at garden centers.

If your disease symptoms continue unabated, you may benefit from applying a fungicide. However, while fungicides clear up certain problems, they may set up your turf for the development of new ones. This is caused by the fungicide killing off disease-suppressing microorganisms as well as the targeted organisms.”

Gladys has been involved with The Lehigh Valley as a Resident, Business Owner, an Active member of the Business Community, Civic and Social Organizations for 37 years. She cares for and knows The Lehigh Valley that she calls Home extremely well. Lived in Palmer Twp, Easton, Allentown, Macungie, now in  Schuylkill County.

In Addition to the Lehigh and Northampton Counties, Gladys has done Business in the Poconos, Berks County, Schuylkill County etc.

The following are some of her traits, that her current & past clients believe about her.

1) Trustworthy Negotiator: Negotiating, is one of her Fundamental Business skills
& as is problem- solving. She  reaches the objectives 99 times out of a 100.
2) Reliable: She  Will call you as soon as you need her, and she’ll do the work Diligently.
Her cell Number is Published , and with her,24/7.
3) Vigilant: Watchful, Alert to When, Where & what is her client’s Best Interest.

4)Honest : She Say it as it is….Transparent…Genuine to the core, through and through.
5) Caring : The client’s interest is always her # 1.
She works for you as for herself and as she says as for “her Mother”.
6) Responsible: She Does what she promises and always more.
7) Professional: Right to the point, Respectful of her client’s Interest and Needs.
8)Successful: Years of Proven professional & successful record! No tripping and falling with your case.
9) Environmentally conscious: She Respects Nature and the environment, & everyone’s co-exsistence.
10) Patient: One of her Best Virtues. She’ll look at as many homes as you need to, so you can
finally find that place you like to call Home.

Should you be from Generation X,Y, baby boomers, she understands your needs.
She will Negotiate on your behalf, diligently, with Integrity, Caring and Sensibility.

Call Gladys for your Real Estate’s Needs, you will never regret it. She Cares about you. She’ll  give you 100% Energy everytime.  She’s The one who has Character, Integrity, Honesty and Dedication.
A Professional Business person, a well rounded Multi-Cultural who understands where You are coming from….
Contact Her and you will be convinced that She is the Realtor for you.
This is the time to take advantage of the low home prices and the abundance of available ones, as well as the low interest rates, and make your move to improve your current living situation.

                     “Every Client of mine is a Million Dollar Client.” GMW

According to the National Association of Home Builders.

“As a long term investment, homeownership is still one of the best investments for individual households.

Buy or rent?

So, should you join the house party or be content to rent?

Two big factors in the equation: How long you plan to stay put and how much you expect your home to appreciate.

You typically need to stay in a home at least three years to recoup your costs. But consumer advocate Clark Howard says five years is even better, because you never know how the real estate market will fare. To protect yourself, assume your home will appreciate at the rate of inflation or a little more, says Howard.

And you may need to stay longer to come out ahead compared to renting. On the condos I priced in the San Francisco area, I would have had to keep one for at least 13 years in order to save money versus renting for the same period of time (assuming a rate of appreciation in line with inflation). Of course many people buy with the hope that prices will appreciate fast enough to pay off sooner, but that’s a gamble, especially with many economists — including Alan Greenspan — warning that growth can’t continue at its current pace forever.

Even if you plan to stick around long enough for the purchase to pay off, that doesn’t mean squat if you can’t afford to pay the bills. Your monthly house payment — including principal, interest, taxes and insurance — should consume no more than 33% of your monthly gross income. Your total debt payments, including your credit cards and student loans, should remain below 38% of your total pay.

Also, do you have enough cash for a down payment? Typically, you need 20% of the purchase price to avoid paying extra for private mortgage insurance. That’s $40,000 for a $200,000 home. And don’t forget closing costs, which can add up to 3% to 6% of the purchase price.

Bottom line: Buy a house because it’s the right move for your situation and finances. Don’t let the fear of missing out on big gains drive you to a decision you may regret later.

If you find that buying is the better bargain and makes more sense for you.

Any questions? Please call this Realtor, Gladys Wehbe at 610-972 3545