MEXICO'S volatile border city of Ciudad Juarez has the world's highest murder rate, followed by Caracas, Venezuela and the US city of New Orleans.

Ciudad Juarez - the scene of regular and brutal score-settling between rival drug gangs - has 130 murders per 100,000 inhabitants, the Citizen's Council for Public Security said.

Caracas has 96 murders per 100,000 inhabitants and New Orleans registers 95, the Mexican non-governmental organisation said, basing its figures on media and FBI reports.

Caracas was listed as the murder capital of the world in the September 2008 Foreign Policy magazine, quoting official figures of 130 murders per 100,000 inhabitants.

The Mexican NGO put another Mexican border city, Tijuana, in fourth place with 73.

Cape Town, South Africa, was fifth with 62, and Baghdad, Iraq, is in 10th position with 40 murders per 100,000 inhabitants.

In Ciudad Juarez, 1362 people have been murdered so far this year up to August 21 as violence spirals among powerful cartels fighting for control of lucrative drug routes into the United States.

The deployment of 8500 troops in the border city - part of a nationwide crackdown involving more than 36,000 troops - has failed to quell the violence.

Would you go to Baghdad for a holiday? Probably not, but tens of thousands of people will go to South Africa to see the World Cup in 2010 which will place them in a city with a higher murder rate than Baghdad...better of watching it on TV!

The Top? Ten:

1. Ciudad Juarez
2. Caracaz, Venezuela
3. New Orleans, United States
4. Tijuana, Mexico
5. Cape Town, South Africa
6. Port Moresby, Paua New Guinea
7. San Salvador, El Salvador
8. Medelin, Colombia
9. Baltimore, United States
10. Baghdad, Iraq


Source; The Daily Telegraph

          A recent article on the Wall Street Journal Blog discussed the median household income over the last decade in relation to the average square footage increase of new single family homes.

While the median household income has not changed significantly over the last decade, the average square footage has increased dramatically. Square footage matters, and the Accuriz Housing In Crisis report produced some months ago discussed this booming trend:

The Housing in Crisis report indicated that the variance increase in the average to median sale price from 6% to 22% can be most notably attributed to building size. Property data from public records noted that during the recent construction boom, many areas of the country experienced home sizes exceeding 2,200 square feet by the end of 2008.

Essentially, homes got larger while homeowners’ pockets didn’t. Couple this with significant overbuilding and easy lending and the keys to a housing boom are in place. Now with the economy looking towards recovery, this excess of larger homes – or ”McMansions” - could suffer from a demand shortage in some areas. This also forces builders to consider new construction with smaller floor plans to accomodate buyers. Will larger home values drop to meet demand? Are we seeing a halt to larger construction for some time? These answers remain to be seen.

What is certain is that square footage matters. As the market begins correction, the basic economic laws of supply and demand should return back to balance.

Source: Accuriz.com

          A steady increase in the pace of Orlando home sales activity is creating conditions that are within striking distance of a balanced market. Inventory level reflects an 8.37-month supply at the current pace of sales; a market with six months of supply is considered by housing economists to be balanced between buyers and sellers.

Members of the Orlando Regional Realtor Association in June sold 43.12 percent more homes than in June of last year, contributing to the area's year-to-date sales increase of 43.76 percent. There were 2,131 closings in June, which brings the year's total to 9,993, while a total of 6,951 homes had changed by this time last year. Of those June sales, 45.99 percent of the homes were either bank-owned (832) or distressed (148). The remaining (1,151) "normal" sales made up 54.01 percent.

ORRA President Les Simmonds, explains that the increase in sale activity can be attributed in part to first-time homebuyers taking advantage of the $8,000 federal tax credit. "The first-time tax credit should be expanded to all buyers of primary homes regardless of income," he says. "And, extending the credit into 2010 would allow more time for the market to catch up with underlying demand and maximize the potential for a housing recovery."

The significant percentage of bank-owned and distressed home sales continue to have an influence on Orlando's reported median price. The median price of all Orlando homes sold in June is $131,200 (a 39.26 percent decrease compared to June 2008 and an 0.92 percent increase compared to May 2009). The median price for "normal" sales is $172,500 (up 4.55 percent from last month's $165,000). The median price for bank-owned sales is $79,900 (down 2.56 percent from last month's $82,000) and the median price for distressed sales is $152,000 (up 8.57 percent from last month's $140,000).

In addition to an increase in completed sales in Orlando, there is more than double the number of homes currently awaiting closings (7,230) than in June of last year (3,329). Of those pending sales 3,686 are homes that came under contract in the month of June alone, yet again marking the most in a single month this year.

Homes of all types spent an average of 104 days on the market before being sold in June 2009, and the average home sold for 93.77 percent of its listing price.

The most single-family homes sold in any one price category (184) fell into the $200,000 - $250,000 range.

Inventory

There are currently 17,831 homes available for purchase through the MLS. Inventory decreased by 1,292 homes from May 2009, which means that 1,292 more homes left the market than entered the market. Compared to last year, the June 2009 inventory level is 27.44 percent lower than it was in June 2008 (24,575).

The inventory level's 8.37-month supply is the lowest since July 2006. Increased sales activity has led inventory months-of-supply to decline by 61.14 percent since January 2009, when months of supply clocked in at 21.54.

MSA Numbers

Sales of existing homes within the Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in June were up by 56.90 percent when compared to June of last year. Throughout the entire MSA, 2,774 homes were sold in June 2009 compared with 1,768 in June 2008. To date, MSA sales are up by 53.81 percent over this time last year, with sales at 12,863 compared to 2008's 8,363.

          The Florida Association of Realtors®’ has conducted a study into migration – the movement of people into and out of a geographic area – and its impact on a state’s economy and real estate market.

Because birth and death rates are usually low and stable, migration often accounts for the largest changes in population growth, decline and redistribution.

Migration patterns have a big impact on demands for real estate, and Florida has one of the greatest levels of domestic migration. Florida’s total population was 18.3 million in 2008, and, according to the Census Bureau estimates, will reach 19.3 million by July 2010, and approximately 23.4 million by 2020.

The Census Bureau estimates a 79 percent increase in total population between 2000 and 2030, ranking Florida third highest in projected population growth.

Twenty-two percent of the state’s population in 2007 was under 18 years old, and 17 percent was 65 years and older.

By 2015, 21 percent of the state’s population is projected to be under 18 years of age, and 19.5 percent will be 65 years and older.

Furthermore, Florida is a favorite state for many second home buyers, both from other areas in the U.S. as well as from abroad. While the state still attracts retirees, it also appeals to many young college graduates.

          Florida’s existing home sales rose in April – the eighth consecutive month that sales activity increased in the year-to-year comparison, according to the latest housing data released by the Florida Association of Realtors® (FAR). April’s statewide sales showed gains over the previous month’s sales level in both the existing home and existing condominium markets.

Existing home sales rose 18 percent last month with a total of 13,111 homes sold statewide compared to 11,133 homes sold in April 2008, according to FAR. April’s statewide existing home sales were slightly higher than statewide activity in March.

Florida Realtors also reported a 21 percent rise in statewide sales of existing condos in April; existing condo sales last month increased 6.2 percent over the total units sold in March.

Fourteen of Florida’s metropolitan statistical areas (MSAs) reported increased existing-home sales in April and 11 MSAs also showed gains in condo sales. A majority of the state’s MSAs have reported increased sales for 10 consecutive months.

Florida’s median sales price for existing homes last month was $138,500; a year ago, it was $199,500 for a 31 percent decrease. Housing industry analysts with the National Association of Realtors® (NAR) note, however, a significant downward distortion in the current median price due to many discounted sales, including a large number of foreclosures. The median is the midpoint; half the homes sold for more, half for less.

The national median sales price for existing single-family homes in March 2009 was $174,900, down 11.5 percent from a year earlier, according to NAR. In California, the statewide median resales price was $253,040 in March; in Massachusetts, it was $255,000; in Maryland, it was $264,302; and in New York, it was $222,500.

According to NAR’s latest housing industry outlook, it could take a few months for the housing market to gain momentum, though there are signs of stabilization. “The share of lower priced home sales has trended up, indicating a return of many first-time buyers,” says NAR Chief Economist Lawrence Yun. “Buyer traffic has been rising, and real estate offices are getting phone inquires about the tax credit. By early summer we should be seeing a positive impact on home sales from record-low mortgage interest rates in addition to the stimulus provisions.”

          The US Treasury on Wednesday unveiled the details of Barack Obama’s housing ­rescue plan, which will pay mortgage servicers to modify troubled home loans while reducing borrowers’ interest rates to as low as 2 per cent.

In an effort to ensure that a relaxation of mortgage terms is only given to borrowers who need them, those hoping to qualify for changes will have to fully document their income and sign an affidavit declaring financial hardship.

Servicers, which collect home loan payments and work with troubled borrowers, will have to conduct detailed assessments of a borrower’s ability to pay and adhere to strict reporting requirements in order to collect incentive payments from the Treasury. Fannie Mae and Freddie Mac, the government-run mortgage financiers, will administer the programme to ensure that servicers only receive payments for successful mortgage modifications.

Lenders and servicers ­welcomed the plan on Wednesday as providing the first comprehensive scheme for easing the crisis, which they say has worsened in part because struggling homeowners have held out for the latest government bail-out.

Reacting to the plan, a senior mortgage industry official said: “The absence of standardisation has made modifications very complicated. The existence of a standard plan is a major step forward for the industry.”

The plan, released in broad-brush terms two weeks ago, has three components. The first two parts involve an expansion of the role of Fannie and Freddie – providing them with additional access to funds and pursuing a $200bn refinancing plan for borrowers with mortgages that exceed the value of their homes.

The third component provides for $75bn of subsidies for modifications to home loans owned by banks and investors. This will provide mortgage servicers with incentive payments to modify loans and borrowers with inducements to stay up to date on their payments.

The nuts and bolts of the plan included additional incentives to mortgage servicers. These include incentives to push borrowers toward alternatives to foreclosure if they do not qualify for a modification. This could include a short sale of the house, for example, where the borrower sells a house worth less than the mortgage to clear the debt, instead of going through expensive foreclosure proceedings.

Also added to the details was an option for servicers to reduce borrowers’ total outstanding mortgage debt, instead of pursuing a reduction in interest rates.

When the plan was first released it revolved almost entirely around bringing down monthly payments, primarily through reducing the interest rate on home loans. But studies by some regulators have shown that negative equity may be one of the principal factors behind foreclosure.


Source FT.com

          A record 19 million U.S. houses stood empty at the end of 2008 as homes went into foreclosure faster than banks could sell them and prices continued to fall.

Vacant homes in the fourth quarter increased by 6.7% the same period a year ago, the US Census Bureau said today. The vacancy rate, the share of empty homes for sale, rose to 2.9% in the quarter, the most in data that goes back to 1956.

US banks owned $11.5 billion of homes they seized from delinquent borrowers at the end of the third quarter, according to the Federal Deposit Insurance Corp. in Washington - up from $5.4 billion a year ago.

More Americans signed contracts to buy previously owned homes in December for the first time in four months, signaling slumping prices from foreclosure sales, may be boosting demand.

The index of pending home resales climbed 6.3% to 87.7, the first increase since August, from a revised 82.5 in November, the National Association of Realtors said in a report today in Washington. Pending sales rose in two of four regions.

US banks owned $11.5 billion of homes they seized from delinquent borrowers at the end of the third quarter, according to the Federal Deposit Insurance Corp. in Washington - up from $5.4 billion a year ago.

There are some signs of a bottoming out in the housing market as more Americans signed contracts to buy previously owned homes in December for the first time in four months, signaling slumping prices from foreclosure sales.

The index of pending home resales climbed 6.3% to 87.7, the first increase since August, from a revised 82.5 in November, the National Association of Realtors said in a report today in Washington. Pending sales rose in two of four regions.

NAR’s Housing Affordability index rose 10.9 percent in December to 158.8, the highest on record. The HAI shows that the relationship between home prices, mortgage interest rates and family income is the most favorable since tracking began in 1970.