Evansville Mayor Jonathan Weinzapfel says he will not seek re-election. The Democrat is leaving the door open for a political office in the future saying he's seeking new challenges. During a news conference to announce his decision, Weinzapfel did not mention the 2012 governor's race.

He was first elected Evansville mayor in 2003 and re-elected in 2007.

Weinzapfel has also served as a state representative.

He has highlighted some accomplishments in the mayor's office including the downtown arena project, a regional approach to economic development and the attraction of "tens of millions of dollars in investment" creating hundreds of new jobs.

He points to Berry Plastics, American General, Mead Johnson and AT&T who have continued to expand in Evansville over the past seven years.

The city also lost a major employer in that period when Whirlpool stopped refrigerator production in Evansville and moved most of those operations to Mexico.

Source: Inside INdiana Business http://www.insideindianabusiness.com/newsitem.asp?ID=45451

Pending home sales rose 7.3 percent in November to the highest level since April 2010, according to the National Association of Realtors. That is some good news for the local and national housing markets.

The Realtors also revised higher its pending home sales data for October, showing a gain of 10.4 percent the previous month.

“Housing affordability conditions are at a record high and there is pent-up demand from buyers who’ve been on the sidelines, but contract failures have been running unusually high," said NAR chief economist Lawrence Yun. “Some of the increase in pending home sales appears to be from buyers recommitting after an initial contract ran into problems, often with the mortgage.”

Pending home sales in the south, which includes the Washington area, rose 4.3 percent last month, and were up 8.7 percent from year-ago levels.

Freddie Mac reported Thursday that 30-year fixed-rate mortgages remained below 4 percent for the ninth consecutive week this week, contributing to an increase in buyer activity.

Source:http://www.bizjournals.com/phoenix/morning_call/2011/12/pending-home-sales-reach-19-month-high.html

Michele Lerner, author of Homebuying: Tough Times, First Time, Any Time, offers reasons why real estate is likely to improve in 2011. Here are five reasons she thinks consumers should consider a home purchase next year:

▪ Mortgage rates will stay low. Even with rates climbing — maybe to as high as 6 percent by 2012 — they are still well below where they have been historically.
▪ Tax cuts could help. Extending the tax cuts could encourage a more rapid recovery for the economy.
▪ Americans want to be home owners. A recent Fannie Mae survey showed that Americans still believe a home is a safe and desirable investment.
▪ Builders are about to begin building. Home builders have been sitting on the sidelines. This year, they think pent-up demand will create an appetite for new homes.
▪ Homes are shrinking. Homes are getting smaller, which has made them more affordable.

Source: Investopedia, Michele Lerner (12/24/2010)

http://www.realtor.org/rmodaily.nsf/pages/News2010122701?OpenDocument

As part of the 2010-11Remodeling Cost vs. Value Report, REALTORS® recently rated exterior replacement projects among the most cost-effective home improvement projects, demonstrating that curb appeal remains one of the most important aspects of a home at resale time.

“This year’s Remodeling Cost vs. Value Report highlights the importance of exterior projects, which not only provide the most value, but also are among the least expensive improvements for a home,” said National Association of REALTORS® President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I. “Since resale value can vary by region, it’s smart for home owners to work with a REALTOR® through the remodeling and improvement process; they can provide insight into projects in their neighborhoods that will recoup the most when the owners are ready to sell.”

Nine of the top 10 most cost-effective projects nationally in terms of value recouped are exterior replacement projects. The steel entry door replacement remained the project that returned the most money, with an estimated 102.1 percent of cost recouped upon resale; it is also the only project in this year’s report that is expected to return more than the cost. The midrange garage door replacement, a new addition to the report this year, is expected to recoup 83.9 percent of costs. Both projects are small investments that cost little more than $1,200 each, on average. REALTORS® identified these two replacements as projects that can significantly improve a home’s curb appeal.

“Curb appeal remains king – it’s the first thing potential buyers notice when looking for a home, and it also demonstrates pride of ownership,” said Phipps.

The 2010-11Remodeling Cost vs. Value Report compares construction costs with resale values for 35 midrange and upscale remodeling projects comprising additions, remodels and replacements in 80 markets across the country. Data are grouped in nine U.S. regions, following the divisions established by the U.S. Census Bureau. This is the 13th consecutive year that the report, which is produced by Remodeling magazine publisher Hanley Wood, LLC, was completed in cooperation with REALTOR® Magazine.

REALTORS® provided their insight into local markets and buyer home preferences within those markets. Overall, REALTORS® estimated that home owners would recoup an average of 60 percent of their investment in 35 different improvement projects, down from an average of 63.8 percent last year. Remodeling projects, particularly higher cost upscale projects, have been losing resale value in recent years because of weak economic conditions.

According to the report, replacement projects usually outperform remodel and addition projects in resale value because they are among the least expensive and contribute to curb appeal. Various types of siding and window replacement projects were expected to return more than 70 percent of costs. Upscale fiber-cement siding replacement was judged by REALTORS® the most cost effective among siding projects, recouping 80 percent of costs. Among the window replacement projects covered, upscale vinyl window replacements were expected to recoup the most, 72.6 percent upon resale. Another exterior project, a wood deck addition, tied with a minor kitchen remodel for the fourth most profitable project recouping an estimated 72.8 percent of costs.

The top interior projects for resale value included an attic bedroom and a basement remodel. Both add living space without extending the footprint of the house. An attic bedroom addition costs more than $51,000 and recoups an estimated 72.2 percent nationally upon resale; a basement remodel costs more than $64,000 and recoups an estimated 70 percent. Improvement projects that are expected to return the least are a midrange home office remodel, recouping an estimated 45.8 percent; a backup power generator, recouping 48.5 percent; and a sunroom addition, recouping 48.6 percent of costs.

Although most regions followed the national trends, the regions that consistently were estimated to return a higher percentage of remodeling costs upon resale were the Pacific region of Alaska, California, Hawaii, Oregon and Washington; the West South Central region of Arkansas, Louisiana, Oklahoma, and Texas; the East South Central region of Alabama, Kentucky, Mississippi and Tennessee; and the South Atlantic region of the District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia and West Virginia.

The regions where REALTORS® generally reported the lowest percentage of costs recouped were New England (Connecticut, Massachusetts, Maine, New Hampshire, Rhode Island, and Vermont), East North Central (Illinois, Indiana, Michigan, Ohio and Wisconsin), West North Central (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota), and Middle Atlantic (New York and Pennsylvania).

“It’s important to remember that the resale value of a particular improvement project depends on several factors,” said Phipps. “Things such as the home’s overall condition, availability and condition of surrounding properties, location and the regional economic climate contribute to an estimated resale value. That’s why it is imperative to work with a REALTOR® who can provide insight and guidance into local market conditions whether you’re buying, selling or improving a home.”

Results of the report are summarized in the January issue of REALTOR® Magazine. To read the full project descriptions, access national and regional project data, and download a free PDF containing data for any of the 80 cities covered by the report, visit www.costvsvalue.com. “Cost vs. Value” is a registered trademark of Hanley Wood, LLC.

Hanley Wood, LLC, is the premier media company serving housing and construction. Through four operating divisions, the company produces award-winning magazines and websites, marquee trade shows and events, rich data, and custom marketing solutions. The company also is North America’s leading provider of home plans. Founded in 1976, Hanley Wood is a $240 million company owned by JPMorgan Partners, LLC, a private equity affiliate of JPMorgan Chase & Co.

REALTOR® Magazine is published by the National Association of REALTORS®, “The Voice for Real Estate” and America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.

Source:http://www.realtor.org/press_room/news_releases/2010/12/home_owners_recoup

  It’s almost a new year, so let me make some specific and bold
  predictions about real estate sales in 2011.  Sales, compared to 2010, will
  be greater in January, about the same in February and will be less in March,
  April and May.  What does this mean about the state of real estate and where
  we will be after the first half of 2011?  The answer is, absolutely
  nothing.  In case you are wondering why I’ve started this month’s Market
  Watch as I have, let me explain.  The real estate market has experienced two
  tax credits that have expired since November of 2009.  In both cases the tax
  credits boosted, then slowed real estate transactions.  My predictions only
  reflect the reality of the real estate market returning to normalcy, without
  unusual stimulus.

       The national press will be full of articles discussing significant year
  over year changes in the real estate market.  Don’t be fooled by assuming,
  based on these articles that there are really big changes occurring in real
  estate sales.  We will not really have meaningful year over year information
  until July of next year.

       My advice for now would be to take advantage of very low interest rates
  that are sure to rise. Home prices locally have already stabilized, in fact
  the average sales price in our market has climbed from $117,592 for all of
  2009 to $122,430 through the first eleven months of 2010. If you or someone
  you know does not currently own a home, and is financially qualified, there
  will not be a better time to buy in the foreseeable future. The net worth of
  a homeowner, on average, is 41 times greater than the net worth of a person
  who does not own his or her home.  If you are contemplating moving to a
  different home let me give you realistic expectations about the value of
  your current home and show you the cost of the home you would like to own.

       Kathy and I would like to take this opportunity to extend our best
  wishes for a joyous holiday season and a Happy New Year.

Commercial real estate markets are flattening out, with modestly improving fundamentals expected in 2011, according to the NATIONAL ASSOCIATION OF REALTORS®.

“The basic fundamental of rising commercial leasing demand, resulting from a steadily improving economy, means overall vacancy rates have already peaked or will soon top out,” says Lawrence Yun, NAR's chief economist. “The outlook for the office and industrial markets has moderated with modestly declining vacancy rates expected as 2011 progresses, while the retail sector should hold fairly steady. Still, high vacancy rates imply falling rents.”

Yun anticipates a rise in household formation from an improving economy, which will increase demand for housing, both ownership and rental. “Multifamily housing is the one commercial sector that has held on relatively well in the past year, and can expect the best performance in 2011,” he added.

“Apartment rents could rise by 1 to 2 percent in 2011, after having fallen in 2009 and no growth in 2010,” Yun said. “This rent rise therefore could start to force up broader consumer prices as well.” He noted that the housing shelter cost of primary rent, and owner’s rental equivalence, is the biggest component in the Consumer Price Index, accounting for 32 percent of its total weight.

The Society of Industrial and Office REALTORS®, in its SIOR Commercial Real Estate Index, an attitudinal survey of more than 400 local market experts, shows vacancy rates are slowly improving, but rents continue to be soft with elevated levels of subleasing space on the market.

The SIOR index, measuring the impact of 10 variables, rose 1.6 percentage points to 42.6 in the third quarter, but remains well below a level of 100 that represents a balanced marketplace. This is the fourth straight quarterly improvement following almost three years of decline.

Commercial real estate development continues at stagnant levels with little investment activity, but is beginning to pick up in many parts of the country. NAR’s
latest Commercial Real Estate Outlook offers projections for four major commercial sectors and analyzes quarterly data in the office, industrial, retail, and multifamily markets. Historic data were provided by CBRE Econometric Advisors.

Office Markets
Vacancy rates in the office sector, where a large volume of sublease space remains on the market, are forecast to decline from 16.7 percent in the current quarter to 16.4 percent in the fourth quarter of 2011, but with very little change during in the first half of the year. The markets with the lowest office vacancy rates currently are New York City and Honolulu, with vacancies around 9 percent. All other monitored markets have double-digit vacancy rates.

Annual office rent is expected to decline 1.8 percent this year, and then slip another 1.6 percent in 2011. In 57 markets tracked, net absorption of office space, which includes the leasing of new space coming on the market as well as space in existing properties, should be a negative 3.7 million square feet this year and then a positive 16.4 million in 2011.

Industrial Markets
Industrial vacancy rates are projected to decline from 13.9 percent currently to 13.2 percent in the closing quarter of 2011. At present, the areas with the lowest industrial vacancy rates are Los Angeles, Salt Lake City, and Kansas City, with vacancies in the 8 to 10 percent range.

Annual industrial rent is likely to fall 4.0 percent this year, and decline another 3.4 percent in 2011. Net absorption of industrial space in 58 markets tracked should be a negative 25.1 million square feet this year and a positive 134 million in 2011.

Retail Markets
Retail vacancy rates are expected to change little, declining from 13.1 percent in the fourth quarter of this year to 13 percent in the fourth quarter of 2011. Markets with the lowest retail vacancy rates currently include San Francisco; Orange County, Calif.; and Honolulu, with vacancies in the 7 to 8 percent range.

Average retail rent is seen to drop 3.4 percent in 2010 but largely stabilize next year, slipping 0.3 percent in 2011. Net absorption of retail space in 53 tracked markets is projected to be a negative 0.5 million square feet this year and then a positive 5.0 million in 2011.

Multifamily Markets
The apartment rental market — multifamily housing — is expected to get a boost from growth in household formation. Multifamily vacancy rates are forecast to decline from 6.4 percent in the current quarter to 5.8 percent in the fourth quarter of 2011. Areas with the lowest multifamily vacancy rates presently are San Jose, Calif.; Miami; Boston; and Portland, Ore., with vacancies in a range around 4 percent.

Average apartment rent is likely to rise 0.2 percent this year and another 1.4 percent in 2011. Multifamily net absorption should be 85,200 units in 59 tracked metro areas this year, and another 147,000 in 2011.

Source: NAR

http://www.realtor.org/RMODaily.nsf/pages/News2010112901?OpenDocument

Houses that will sit empty through the winter need attention to avoid frozen pipes, reports Long Island American Water, which is part of American Water, the largest investor-owned U.S. water and waste water utility company.

The company offers these tips for ensuring that pipes don’t burst:

· Search for pipes that are not insulated, or that pass through unheated spaces such as crawl spaces, basements, or garages. Wrap them with pre-molded foam rubber sleeves or fiberglass insulation.

· Wrap really vulnerable pipes with electric heating tape with a built-in thermostat that only turns heat on when needed.

· Seal cracks and holes in outside walls and foundations with caulking to keep cold wind from pipes. Look for areas where cable TV or phone lines enter the house, to be sure holes are tightly sealed.

· If hot-water radiators heat the home, bleed the valves by opening them slightly. Close them when water appears.

· Before really cold weather sets in, make certain that the water to outdoor hose bibs is shut off inside the house and the lines are drained.

· Drain any hoses and air conditioner pipes.

· Wrap the water heater or turn it off.

· Make sure gutters and downspouts have been cleaned to remove debris that could freeze and cause clogs during cold weather.

· Know where the main water shut-off valve is located in case it needs to be shut off during an emergency.

Source: Long Island American Water (11/16/2010) http://www.realtor.org/RMODaily.nsf/pages/News2010111706?OpenDocument